Accent Capital PLC
9 August 2024
Accent Group Limited1 Announces Financial Results for 2023/24
Accent Group is delighted to announce a strong financial performance for the year ended 31 March 2024. Through a period of continued economic challenge, with interest rates peaking at 5.25% and inflation remaining high, Accent has continued to deliver on its corporate strategy and deliver quality homes and invest in services for its customers.
As a result of the continued development programme and rental uplift, turnover was strong and grew by £11.4m in the 12 months to 31 March 2024 to £126.7m with a headline operating margin of 25.8%.
Total comprehensive income for the year is reported at £25.8m, a decrease of £1.75m on the prior year resulting from a lower actuarial gain on pension schemes in the year to 31 March 2024 than seen in 2023.
Accent's balance sheet remains strong with the development and growth programme supporting an increase in tangible fixed assets of £94.0m to £949.4m at 31 March 2024. Liquidity also remains strong with cash at bank and liquid assets totalling £136.8m at the year end.
Income from the sale of new properties grew to £9.9m, an increase of £4.6m on the previous year, and supported the underlying performance of the business with a surplus of £2.1m. Demand for Accent properties remained strong throughout the year reflecting the quality and sustainability of the homes being developed. In the year to 31 March 2024, Accent received over £51.6m in grants, much of which emanates from the £216m strategic partnership with Homes England in which Accent is the lead partner.
In terms of key ratios for the 2023/24 financial year:
· EBITDA-MRI2/Turnover (excluding grants) was 16.8% compared to 29.2% in 2023/2024.
· EBITDA-MRI/Interest expense decreased to1.3x from 2.4x
· Debt/EBITDA-MRI increased to 23.4x from 14.7x
All of the above ratios were impacted by the significant investment in existing homes in the year which saw capitalised major works expenditure increase from £12.5m in 2022/23 to £21.3m in 2023/24.
Speaking of the results, Executive Director of Finance & Business Services Kirsty Spark said:
"Despite the continued challenges in the sector, Accent has delivered yet another strong set of financial results for the year ended 2023/24. As we now move forwards with our new three year corporate strategy, Building on Strong Foundations, Accent is well placed to meet the needs of our customers and provide the UK with quality homes fit for the future."
Interim Chief Executive, Sarah Ireland added:
" Following another year of volatility and challenge for the Housing sector we are proud to have delivered on our commitments to our customers, both existing and new, having invested more than £25m in improvement works to our homes and delivered 431 new homes in the 12 months to 31 March 2024. To deliver this and remain financially resilient in an uncertain economic climate is a considerable achievement. Our recently reaffirmed credit rating from Standard and Poors (S&P) of A (with a stable outlook) further consolidates our position.
As we look forward to the new financial year and work towards our priorities as set out in our 2024-2027 Corporate Strategy, Building on Strong Foundations, we feel better placed than ever to navigate the future and support the ongoing housing crisis in the UK."
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 4 September 2024.
https://www.accentgroup.org/media/6071/accent_group_limited_final_accounts.pdf
Issued by Accent Housing, Bradford, West Yorkshire. For more information, contact Stacey Healey, Head of Communications and Public Affairs on 03003739694 or email press.office@accentgroup.org.
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.
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