LONDON - Home Group Limited, a provider of housing services, reported a 17% year-on-year increase in its surplus before tax, amounting to £24.1 million for the six-month period ending September 30, 2024. The unaudited trading update reflects a continuing recovery in the company's business environment.
Chief Financial Officer Helen Meehan highlighted the challenges anticipated in the second half of the year, including higher maintenance costs and an expected rise in repair volumes during the winter. Despite these challenges, the company aims to meet its full-year budgeted surplus.
In August 2024, Home Group's creditworthiness was reinforced as Standard & Poor's reaffirmed its 'A-' rating with a stable outlook. The rating agency recognized the company's low-risk development plan and its flexibility to manage cost and investment pressures. Additionally, the company maintains strong liquidity levels, which S&P noted as a positive factor.
Home Group has also made strides in increasing the supply of affordable housing. In the first half of the fiscal year, the company delivered nearly 450 homes for social and affordable rent or affordable home ownership, marking a 42% increase from the same period in the previous year. The development activities are underpinned by rigorous risk management, with projects proceeding only if they meet the company's target development key performance indicators.
The organization is transitioning to a regional model of service delivery to enhance customer engagement and work more closely with local partners. This shift aims to deepen the understanding of the communities Home Group serves and to deliver on its customer promise.
The full trading update is based on a press release statement and provides a detailed account of the company's performance and strategic focus areas.
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