Bromford reports strong mid-year performance

We have today announced a strong set of financial results for the six months to September 2024 with the publication of our mid-year trading update.

The update shows another period of robust financial performance as we continue to invest in our existing homes and providing new affordable, energy efficient homes.

Key highlights:

• turnover rose to £167m, up 9% from 2023 (£153m). Turnover from social housing lettings was £147m, 88% of total turnover.
• operating surplus was £50m (2023: £48m) and post-tax surplus was £36m (2023: £33m).
• operating margin on social housing lettings maintained at 34% (2023: 34%)
• overall operating margin was 30% (2023: 31%)

Chief Finance Officer Paul Walsh added: “We are pleased to report another strong set of financial results for the six months ending 30 September 2024. 

“Like the rest of the sector, we have faced persistent cost pressures and increased demand for our repairs and maintenance services. In the first six months of the year we have invested £34m in our existing homes to respond to this demand and significantly reduce our repairs backlog. We are committed to delivering the best possible outcomes for our customers whilst also maintaining financial discipline and have maintained our social housing operating margin at the leading edge of the sector at 34%.” 

After being named the country’s biggest builder of social rent homes*, we have continued to invest in our development programme and have completed 457 new homes during the past six months, of which 220 were for social rent. Our in-house construction team built 53 of the completed homes and is forecast to finish another 170 in the second half of the year. We also completed 108 shared ownership homes and four for outright sale. 

During the six months to September 2024 we also published our first results against the regulator’s Tenant Satisfaction Measures. We collected data from customers during their annual conversation with their neighbourhood coach, with more than 10,000 customers taking part. 

Chief Customer Officer Paul Coates said: “Our coaching model is unique; it seeks to build a strengths-based relationship rather than a one size fits all and encourages connections between customers, neighbours and communities. 

"Ninety-three percent of customers not only know their neighbourhood coach but over 88% of customers would recommend them. This investment provides us with a great platform to deliver from and we know it delivers results - including sector leading figures on customer advocacy, 90%, and against the regulator’s Tenant Satisfaction Measures we score 83% on customer satisfaction, marking us out as a top 20% performer.” 

During the six months to the end of September 2024 we raised an additional £200 million through a new sustainable finance deal with NatWest, with targets linked to reducing the intensity of our Scope 1, 2 and 3 carbon emissions and building new homes for social rent. We also retained our sector-leading credit ratings of A+ and A2 from S&P and Moody’s respectively. 

Matthew Rose, Director of Treasury, said: “We expect to return to the market for new funding over the coming year and have significant capacity for additional borrowing. We will aim to strengthen and develop relationships with existing investors and continue to explore opportunities to diversify funding streams, especially as the merger with Flagship creates one of the strongest UK housing associations.” 

In June 2024 we announced our intention to merge with Norwich-based Flagship Group in 2025 to create an 80,000-home housing association and to enable additional development capacity to deliver new homes on a larger scale. 

Read Bromford's Trading Update for the six months to September 2024

*Inside Housing Biggest Builders Survey 2024, published June 2024