Platform Housing Group increases turnover but margins under pressure in half-year results

News04.12.2410.30 AM by James Riding

Platform Housing Group has increased turnover, but warned that operating margins are “under pressure” in its half-year results.

Elizabeth Froude said: “All of our financial metrics remain strong” (picture: Belinda Lawley)

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Platform Housing Group has increased turnover but warned that operating margins are “under pressure” in its half-year results #UKhousing

The 50,000-home housing association saw total turnover rise 14% to £189.6m in the six months to the end of September, up from £166.4m in September 2023.

Of this, core social housing lettings turnover was up 8.2% to £148.6m, while shared ownership sales turnover shot up by 58%.

Platform continued developing at pace. It completed 451 new homes in the six-month period, although this was down from 480 in September 2023.

Post-tax surplus was £25.3m in September 2024, down from £28m the previous year. Net interest rose by £3.6m and surpluses arising from the sale of housing fixed assets were £1.1m lower than the first half of 2023. Also, surpluses on staircasing sales of shared ownership properties, where a customer buys a further stake in their home, were down £600,000 to £1.3m.

Platform also warned that its operating margin was “under pressure” as it fell to 26.3% from 28.7% in September 2023, driven by increased costs and continued investment in homes and services.

The landlord increased spending on existing homes by 84% to £25.9m, up from £14.1m in the first half of 2023. Platform said this rise reflected component replacements, energy efficiency works and ongoing maintenance cost rises.

Arrears remained 3.2%, consistent with the previous year. EBITDA MRI interest cover slumped 64% year on year, to 140% down from 204% in the first half of 2023.

Elizabeth Froude, chief executive of Platform, said: “Investment in our existing homes has again been mobilised quicker this year, going from £14.1m to £25.9m, as we continue to improve the energy standards and comfort of all our homes.

“We also have a programme to deliver energy improvements to almost 1,000 homes as part of the Social Housing Decarbonisation Fund programme [now called the Warm Homes: Social Housing Fund]. We have continued to build new homes and acquire strategic development sites for the future pipeline, which remains strong, and in the first half of this year completed 451 new homes, all with Energy Performance Certificate Band B or above and, wherever possible, off gas.

“Our operating surpluses and net surpluses are slightly down year-on-year, mostly reflecting the increased investment in existing homes and other one-off items such as office disposals in the prior year and breakage costs in managing our loan book in the current.”

She added that all of Platform’s financial metrics “remain strong with solid headroom to our targets”.

“Our commitment to listening to our customers and applying what they tell us remains a core part of who we are and in the year, we have recruited 10 new members for our customer voice panel and supported them with extensive training to allow them to feel confident and assured in their role as a voice in helping us shape our plans and strategies.

“We have continued to drive a focus on controllable costs and hope that our investors continue to see the solid investment they have seen in the past,” she said.

In its most recent full-year results, published in August, Platform reported a drop in its post-tax surplus of £43m, due to one-off costs including a charge for exiting a number of pension schemes.