Midland Heart approaches its centenary in strong financial health
19th Aug 2024 - Investor news
Midland Heart has reported another strong set of financial and operational results for the period 2023/2024 set against a continually challenging operating environment.
The organisation has also retained its Governance 1, Viability 1 (Regulatory gradings) and A1 credit rating (Moody’s).
Midland Heart has reported an annual turnover of £231.9m, an increase of £10.8m on the year previous, and increased total surplus to £41.8m. Other key financial metrics include an operating margin of 28.6% and interest cover of 291%. This surplus has been used in full, contributing to the £145m invested in new homes and over £30m invested in the organisation’s existing homes this year.
Highlights of this year’s report include the delivery of the organisations largest ever programme of home upgrades, with thousands of bathrooms, kitchens and boilers reworked, refitted and replaced to improve the thermal comfort of residents, with over 77% of all properties now rated at EPC C or above. Midland Heart has also developed 670 homes for rent and shared ownership, part of a six-year programme to build and acquire 4,000 homes within the organisation’s corporate plan to 2025, ‘Making What Matters Brilliant’.
For the first time, Midland Heart placed on the Sunday Times Best Places to Work list following a colleague engagement survey held in October 2023.
This year will see Midland Heart celebrate the 100-year anniversary of its creation, and its growth from a home improvement society with 200 homes, to a leading and reputable housing association with over 35,000 homes across the Midlands. The organisation approaches this milestone from a position of financial strength, with a focus on making the older, pre-First World War homes in its portfolio fit for the next 100 years.
Our agile approach to our funding strategy, our robust liquidity, and the strong relationships we have made with our lenders and investors provide us with a strong foundation to achieve our key deliverables and continue to invest in new and existing properties and the communities in which we serve.
This continued financial strength has allowed us to make record levels of investment in our digital services, our front-line operations, our building safety and energy performance and in the quality of our new and existing homes in the last 12 months.
Joe Reeves, Executive Director of Finance & Growth at Midland Heart
I feel extremely proud to lead a team of colleagues who are dedicated to ensuring we have the means to deliver the best possible outcomes for our tenants.
As a result of their efforts, we approach our centenary in a strong position, having made significant and lasting improvements on our three main objectives; becoming a first-class landlord whose services are responsive and accessible, building as many new affordable homes as we can, and becoming a leading employer across the Midlands.
Glenn Harris, Chief Executive of Midland Heart
The organisation plans to celebrate its centenary and reflect on the evolution of Midlands social housing, in an event later this year.
