A continued strong performance for the year 2022-2023
Our core business continues to perform strongly despite the ongoing uncertainty in the economic environment. 2022 was an exceptional year for sales of first tranche shared ownership which have reduced significantly in 2023. This has impacted the underlying operating surplus which fell to £55m (2022: £62m). The business is well placed to manage the 7% rent cap, with an early re-structure of the business having taken place at the end of the financial year.
Highlights
Core Operating Margin of 40% (2022: 42%)
19,757 homes owned or managed (2022: 19,618)
£39m Invested in maintaining and improving existing homes (2022: £35m)
£53m Invested in new homes (2022: £52m)
Our credit rating outlook remained A+(Stable), and our financial viability remained at V1
“I am delighted with the strong performance for the year which saw bpha’s credit rating remain A+(Stable) and V1, the highest financial viability rating.
Whilst the economic and operating environment remains challenging, bpha remained committed to achieving its strategic objectives. Our focus remained on making sure customers felt safe, comfortable and secure in decent homes, with reliable services, delivered with care. This included our specialist money advice team supporting customers as the cost-of-living crisis had a substantial impact. Our new In house Maintenance Service was designed on customer recommendations, resulting in a better experience and improved customer satisfaction. 87% of our homes are now in at least energy Band C, part of our commitment to ensure our homes are fit for the future and efficient to run for customers.”
Summary
Core operating business demonstrated a strong and stable financial performance with an underlying operating surplus of £55m.
In October 2022 Standard & Poor’s reaffirmed our credit rating as A+ (stable), and our financial viability rating continued at V1.
Our overall operating margin remained high at 36%.
100% of our homes continued to meet the Decent Homes Standard.
