Accent Capital PLC
8 August 2023

Accent Group Limited¹ Announces Financial Results for 2022/23

Accent's financial performance remains strong for the year ended 31 March 2023. When compared to the challenges of the 2022/23 financial year, the financial outturn and the continued delivery of its strategic objectives places Accent in a strong position.

Following continued growth and development, turnover grew to £115.3m (2022: £107.9m restated) in the financial year to 31 March 2023, with a reported headline operating margin of 28.1%. When considered against the backdrop of the war in Ukraine placing pressure on the supply chain, the mini budget, unprecedented inflation and the cost of living crisis, this is notable.

In the year to March 2023, Accent adopted a revised accounting policy in respect of housing properties. All properties are now restated at their historic cost as opposed to Existing Use Social Housing Value. This places Accent in a more comparable position with the wider sector and better reflects the impact of its new developments. At 31 March 2023 housing properties were recorded at £845.0m an increase on the prior year of £64.3m when compared to 31 March 2022.

Development contributed £4.0m (grant) and £2.7m (profit) on first tranche and open market sales to the overall results of the business. Land led schemes were developed to the highest standards (EPC A) and as a result sales remained strong generating financial capacity to underpin the ongoing commitment to providing quality homes to support the housing crisis in the UK.

Total comprehensive income for the year is £27.6m (2022: £23.6m restated) which is inclusive of a £6.1m net gain on pension schemes (2022: £9.0m gain) following actuarial valuation.

Throughout the 2022/23 financial year Accent continued to monitor liquidity and actively manage its treasury position. At 31 March 2023, £157.5m was held in cash and liquid reserves, and a further £6.8m held in constructive trust.

In terms of key ratios for the 2022/23 financial year:

·      EBITDA-MRI²/Turnover (excluding grants) was 29.2% compared to the restated 2021/22 figure of  24.2% in 2021/22

·      EBITDA-MRI/Interest expense increased to 2.46x from 2.03x and Debt/EBITDA-MRI reduced from 21.3x to 18.7x.

Speaking of the results, Executive Director of Finance & Business Services Kirsty Spark said:

"2022/23 has been another challenging year for the housing sector however Accent has proven itself to be resilient and has reported outstanding operating results in very difficult circumstances. 2023/24 looks likely to be another challenging year, however we are confident that Accent is well placed to continue delivering high quality services for our customers."

Chief Executive, Paul Dolan added:

"Given the dynamic and volatile operating environment, we are pleased to have sustained strong financial performance throughout the year. Our financial strength is also evidenced by our latest In-Depth Assessment (IDA) G1/V1 rating and the reaffirmation of our A (with a stable outlook) credit rating from Standard and Poors (S&P).

This strong financial standing and the strength of our governance framework provides assurance that we can continue delivering our strategic objectives at pace, invest in our existing homes and build new, affordable homes in areas of housing need. 

Please follow the link below to view the Annual Report & Financial Statements for Accent Group Limited. The Annual Report & Financial Statements for Accent Capital PLC will appear on the investors' page of Accent's website shortly after the AGM to be held on 5 September 2023.

https://www.accentgroup.org/media/5766/accent-group-2022-23-financial-statements.pdf

Issued by Accent Housing, Shipley, West Yorkshire. For more information, contact Stacey Healey, Brand and Communications Strategist on 03003739694 or email [email protected].

Editor's Notes

We provide homes and services to around 42,000 customers in more than 20,700 homes across the north, east and south of England.  
 

We believe that everybody has the right to a safe, sustainable and affordable home. This has been our belief since we formed in 1966. 

¹ Accent Group Limited is the ultimate holding company for Accent Capital PLC.
² Earnings before interest, depreciation and amortisation - major repairs included.