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Anchor Hanover reports robust half-year financial results

Published 11/27/2024, 05:04 PM

LONDON - Anchor Hanover Group, England's largest provider of specialist housing and care for the elderly, released its unaudited financial results for the first half of the 2024/25 financial year, showing significant growth in turnover and earnings before interest, taxes, depreciation, and amortization (EBITDA).

The company reported a turnover of $332.5 million for the six months ending September 30, 2024, an increase of 7.8% from the same period in the previous year. This rise was attributed to higher rental income, care fees, and occupancy levels. EBITDA also saw a substantial increase of 27.1%, reaching $64.7 million.

Anchor's operational efficiency was highlighted by an EBITDA margin of 20.0%, excluding property sales, up from 17.0% in the previous year. The company also reported an operating margin of 9.3%, bolstered by lower utility costs and increased income, which helped to mitigate the effects of inflation on pay and property-related costs.

The company's financial stability is further evidenced by its low gearing of 28.6%, which is comparatively low for the social housing sector, and strong liquidity with undrawn facilities and cash totaling $283.1 million. Anchor also maintained a stable A+ rating from Standard & Poor's and a G1/V1 governance and viability rating from the Regulator of Social Housing.

On the operational front, Anchor maintained high occupancy levels in its rented housing and care facilities and successfully reduced agency usage in its care portfolio, leading to improved financial margins and service delivery. The company's strategic purchasing of energy has also resulted in reduced costs for residents.

Anchor's development efforts have resulted in the completion of 96 new homes and the start of construction on 395 homes. The company's commitment to environmental sustainability is evident in its aim to deliver homes with a minimum average SAP rating of 87, moving towards net zero readiness by 2050.

The company's focus on resident and colleague engagement and support has led to significant additional cash benefits for residents and the establishment of a hardship fund to assist with household bills. Anchor's status as a Living Wage Employer and its Gold accreditation from Inclusive Employers reflect its dedication to staff welfare and diversity.

Despite lower-than-expected property sales, Anchor Hanover's overall financial performance for the half-year period ending September 30, 2024, demonstrates the company's resilience and strategic management in a challenging economic climate. The information provided in this article is based on a press release statement from Anchor Hanover Group.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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