Places for People Group Limited Trading Update for the Period Ending 30 September 2025

Places for People Group Limited

Consolidated Interim Statement of Comprehensive Income
For the 6 months ending 30 September 2025

Places for People Group Limited (the "Group") is pleased to issue its unaudited trading update for the six-month period ending 30 September 2025 ("H1 2025", "the period"). Comparatives are shown for the prior year equivalent period being the six months ended 30 September 2024 ("H1 2024", "the prior period"), which are also unaudited, as well as for the audited year ended 31 March 2025 ("2025").

The social housing sector continues to face significant challenges, balancing investment in existing stock with the delivery of new homes. These pressures are partially offset by continued support from the government, including the introduction of a £1.6bn decarbonisation fund, a commitment to a 10-year rent settlement, potential rent convergence and the £39bn Social and Affordable Homes programme offering investment support and longer-term strategic certainty.

As ever, we are committed to playing our part in addressing the country's housing crisis and utilising the Homes England Strategic Partnership we delivered 793 new homes in the period (2024: 721) of which 673 were affordable.

We have continued to prioritise our investment in the safety and quality of our existing homes, and we are now starting to see the benefits of the measures we have introduced, which included new technology, improved processes and working practices to enhance efficiency. This is complemented by our asset strategy, which focusses on ensuring we have the right homes in the right places, based on geographical clusters and investment need. Overall, this has brought our repairs spend to a more sustainable level, ensuring that our resources are deployed more judiciously. In the first 6 months of the year, we invested £103.5m in capital investment and repairs, compared to £140.6m in the first 6 months of last year and £287.0m in the full year to March 2025.

As well as growth through development we are continuing with our successful merger strategy and are currently completing due diligence on South Yorkshire Housing, c.6,000 homes as well as Elim, c.800 homes. We are hoping to complete these transactions later this calendar year which will further increase our economies of scale. In the period we also refinanced the majority of the remaining debt in Origin Housing Limited and are on track to complete the transfer of engagement into Places for People Living+ Limited on 1 April 2026.

The Group's turnover for the period increased to £540.0m (H1 2024 £481.8m) which generated an Operating profit before interest of £131.8 (H1 2024: £103.3m). These increases are partly due to the rent increase and a reduction in expenditure on revenue repairs. The operating margin for the period was 24.4% which is an improvement from 21.4% at H1 2024.

Due to the increased investment in our homes and the new development activity, we have increased our debt and, combined with higher interest rates, are therefore seeing higher interest costs.

Profit on ordinary activities before taxation was £11.0m, this is materially lower than H1 2024, however, after adjusting for the negative goodwill in the prior period this shows an improved underlying position.

Despite the challenging economic backdrop, we continue to invest in existing properties as well as delivering new homes, and this remains key to our strategy and core purpose, as the UK's leading social enterprise, of changing lives by creating supporting thriving Communities.