Midland Heart retains G1 V1 as strong half year results published

22nd Dec 2022 - Corporate news

Midland Heart has retained its sector leading Moody’s A1 negative rating and its G1 V1 regulatory judgement, together with releasing another strong set of half year operational and financial results. The 34,000 home landlord has maintained high overall customer satisfaction (90%) and satisfaction with their repairs service (89%), as well as improving the energy efficiency of a number of homes, whilst handing over the keys to 251 new affordable homes.

Financially the organisation has also had a strong first half of the year posting a £22.3m surplus before tax. Group turnover increased year on year by £9m to £113m, resulting from an inflationary rental uplift and income from newly built homes. Operating surplus fell £9m year on year to £34m, largely due to the sale surpluses on over 500 units to Orbit Housing Group in the corresponding period last year. In addition, inflationary pressures in repairs and maintenance have led to an increase in operating costs, reducing the total operating margin from 31% to 28%.

Several years ago, we took the decision to simplify our business and focus on providing decent, safe, and secure homes, which places us in a strong position to face the challenges that confront our sector and to invest in the improvements that matter most to our customers.

Glenn Harris, CEO

Glenn Harris, Chief Executive of Midland Heart said:

“Over the course of the six months of the financial year, we have increased the energy efficiency of hundreds of our older homes, modernised over 1,000 kitchens and bathrooms and reduced our re-let time to less than 21 days, ensuring we get people into their new affordable homes as quickly as possible.  We have done this while maintaining the highest levels of building safety and our 100% safety compliance record.

“While the inflationary pressures on our costs will be with us for some time to come, we remain in a robust financial position and can continue to deliver the decent, safe and secure homes our tenants expect.”

Further details are included on our Investors hub.