bpha delivered a strong financial performance and increased its overall surplus (before the fair value movement of bpha’s financial instruments) by 12% to £28m.
The core housing business continued its stable performance, delivering an operating surplus of £46.9m. The development and sales operation showed an expected rebound and reported a £19.1m increase in turnover compared to last year resulting in a record high of £59.0m
Highlights
Core Operating Marginof 42% (2021: 43%)
Operating surplus grew to £62m (2021: £60m)
£35m Invested in maintaining and improving existing homes (2021: £26m)
During the year, this excellent performance has contributed to an improvement in our credit rating outlook from negative to stable, and our financial viability rating improved to V1.
CFO, Julian Pearce, said
“I am delighted with the strong performance for the year which saw bpha’s credit rating improve to A+(Stable) and I am pleased with the Regulators decision to rerate us back to V1, the highest financial viability rating.
“Whilst the economic environment is set to become ever more challenging, bpha is well placed to manage these conditions due to its financial resilience.”
Summary
Core operating business demonstrated a strong and stable financial performance with an operating surplus of £46.9m
Operating cashflows from the core business increased by £4m to £64.2m and comfortably covered interest payments of £37.2m, and £21.2m improvements to housing properties, providing a cash surplus of £5.7m to contribute to future development
Credit rating outlook improved from negative to stable and viability rating improved to V1
Turnover for the development and sales business of £59.0m was £19.1m higher than the same period last year
A 12% increase to the overall surplus (before the fair value movement of bpha’s financial instruments) which has increased to £28.3m
