Beyond Housing

Financial monitoring report for the six months ended 28 September 2025            

1.   The financial performance for the six months ended 28 September 2025 shows a surplus before transfer to reserves of £2.427m, £0.989m lower than the budgeted surplus. The forecast surplus before transfer to reserves is £3.087m, £5.926m below budget for the year.

2.   Turnover is £3.509m under budget for the six months ended the 28 September 2025, of which £2.637m can be attributed to development sales proceeds. At the end of September, 9 low cost home ownerships sales had completed against the year to-date budget of 41, and reflecting delays at both Kirkleatham and Summerville Farm development sites. In addition, higher void levels, voids held for management, lower new units entering management in the first six months have had an adverse impact on rent receivable.

3.   Operating costs are £2.463m under budget at the 28 September 2025. Development cost of sales are £1.748m under budget with this a direct reflection of the low volume of development sales reported above.

4.   An overspend of £2.737m exists on the responsive maintenance budget reflecting the use of specialist subcontractors and our own in-house operatives to reduce the high volume of repairs in work in progress. Underspends in management costs offset the high maintenance spend.

5.   The disposal of housing properties report a surplus of £1.222m as compared to the budgeted deficit of £1.723m, a £2.945m favourable variance. Property sales (RTB, RTA and staircasing sales) are almost double the budgeted level at the end of September whilst the demolition of Spencerbeck House is not expected to start until later this financial year.

6.   Total capital expenditure for the six months ended the 28 September 2025 was £25.061m, £1.607m lower than the budgeted net expenditure of £26.668m. The capital investment programme (key component replacements) and other capital investment budget (ICT/furniture etc.)  report an underspend of £3.289m, partially offset by an overspend on the regeneration & development programme of £1.682m. All variances are considered to be arising due to a matter of timing.

7.   The forecast surplus before transfer to reserves is £3.087m, £5.926m below budget for the year. Adverse variances are forecast on rents & service charge income (£1.266m), development sales profits (£2.315m) and responsive repairs (£4.141m) but are partly offset by the favourable variance of £2.435m on housing property disposals. The impact of the forecast is a 5.6% drop in the projected operating margin to c11.8%.

8.   Rents and service charge income is forecast to outturn £1.266m behind budget due to reprofiled new units entering management and higher levels of void properties. Development sales profits are forecast to outturn £2.315m less than budget largely reflecting a change of accounting treatment in relation to inherited grant which had the impact of increasing the cost of sales compared to budget and therefore reducing the surplus. Responsive repairs are £4.141m over budget due to significant investment in reducing work in progress while the favourable variance on housing properties of £2.435 results from higher property sales and the reprofiling of the demolition of Spencerbeck House.

9.   From a treasury perspective, gross borrowings stand at £297.6m, of which £262.6m (88.2%) is at a fixed rate of interest. Borrowings net of cash reserves is £284m. The total revolving credit facility (RCF) available and undrawn is £55m and Beyond Housing has £45m retained bond available if required. There are no debt repayments due within the next 24 months and the liquidity requirement meets the treasury management policy and golden rule of 21 months.

10. All loan covenants are comfortably above lender covenant targets. The tightest covenant at a funder level is the asset cover ratio, as c5,600 units are not allocated to any of the lenders. The overall asset cover ratio is c156% demonstrating the headroom that exists between target and overall performance.

11. The balance sheet demonstrates that the total assets, less current liabilities, has grown by £16.4m during the six months ended 28 September 2025. This is due to the increase in fixed assets of £16m, a reduction in current assets of £0.5m and a reduction in current liabilities of £0.9m. Beyond Housing loans were £297.6m and the gearing ratio is 48%, well below our golden rule of 63%.

12. A financial summary can be found in the attached link to this announcement below:-

 http://www.rns-pdf.londonstockexchange.com/rns/7199T_1-2026-2-19.pdf