Sovereign Network Group's Quarterly
Performance Update covering unaudited Q3 results for the financial
year 2024/25
Sovereign Housing Association trading as Sovereign Network
Group (SNG)
Sovereign Network Group is the sixth
largest housing association in the UK in terms of unit size with
over 84,000 homes, with a core geographical focus in the South of
England and London. SNG rose up to be the
second largest housing association builder in 2023/24, with an
ambition to develop 25,000 homes over the next 10 years.
Quarter 3 Performance Update - period to 31 December
2024
Sovereign Network Group's unaudited underlying
financial performance in Q3 FY25 shows growth in turnover against
the previous quarter. Core lettings turnover also increased
year on year owing to additional income from new homes and the rent
uplift. Q3 FY25 retained surplus increased slightly compared to Q3
FY24 owing to higher turnover.
The development programme produced 328
handovers in the quarter. Q3 FY25 sales are slightly ahead of
the overall run rate for the year with 171 sales, which is an
increase from the 168 sales in Q2 FY25 but is marginally down on
forecast for surplus on sales.
SNG
I&E
|
£'m
|
Q3 24/25
|
Q2 24/25
|
Variance
|
Variance
|
Q3 23/24
|
Variance
|
Variance
|
|
|
Qtr Actuals
|
Qtr Actuals
|
£m
|
%
|
Qtr Actuals
|
£m
|
%
|
|
Turnover
|
196.9
|
183.3
|
13.6
|
7.4%
|
177.1
|
19.8
|
11.2%
|
|
CoS, Op Cost, & Depn
|
(158.3)
|
(147.1)
|
(11.2)
|
7.6%
|
(149.4)
|
(8.9)
|
6.0%
|
|
Operating Surplus
|
38.6
|
36.2
|
2.4
|
6.5%
|
27.8
|
10.8
|
39.1%
|
|
Disposals, Financing & JV
|
(22.7)
|
(22.3)
|
(0.5)
|
2.0%
|
(13.5)
|
(9.3)
|
68.7%
|
|
Retained Surplus
|
15.9
|
14.0
|
1.9
|
13.7%
|
14.3
|
1.6
|
11.1%
|
Treasury
As at Q3 FY25, SNG had total long-term
facilities of £4,720 million. £3,963 million of facilities were
drawn, with £757m of available liquidity facilities and cash and
cash equivalents of £44m.
In Q3, SNG held a non-deal roadshow to engage
with our investors to discuss strategy, performance and share
updates on the sector.
There continues to be significant headroom
against Interest Cover and Gearing covenants across all SNG
facilities.
Credit
ratings
SNG has an A3 (Outlook: Stable) rating with
Moody's.
SNG has an A- (Outlook: Stable) with S&P.
SNH has an A- (Outlook: Stable) with
Fitch.
Customer Services
Through the continued roll out of
the annual customer tenancy anniversary survey 'close the loop'
initiative we have prevented 294 potential complaints from being
raised and resolved 487 customer queries / issues through proactive
contact. Q3 also saw the launch of 'You said, We did' on our
websites, with 128 views; expected to increase following promotion
of this new feature in January's customer service
update.
Roll out of the new contractor
portal has significantly improved our reported emergency repairs
performance, with 93% of all repairs completed to
target.
Communities and
Sustainability
Through Q1 - Q3 FY24/25, SNG
generated £99.8m of social value through activity across Community
Investment and the wider organisation against a full year target of
£100m. Since the beginning of April, we've partnered with 317
community organisations, enabled 457 young people to engage in
youth social action through our #iWill Fund, supported customers to
achieve 249 jobs, access 1,640 training courses and provided 2,771
fuel poverty interventions.
SNG continues to make good progress
on improving the thermal efficiency of existing core stock with an
overall average RdSAP score of 73.08%.
SNG also published its
Impact and Sustainability Report for
FY24.
In November 2024 SNG published it's
first
Environmental Sustainability Strategy, 'Towards a greener
future'. The strategy has an overarching aim to embed
consideration of the planet and nature into everything SNG
does.
Corporate Affairs
The Government has kept housing at the
forefront of its growth plans in one of the most active policy
environments for the sector in many years. SNG continues to engage
with government, wider policymakers and MPs - both directly and
through our sector bodies to influence the Government's approach.
The Group CEO and wider senior leadership continue to meet
regularly with MPs, including ministers. We welcomed the announced
changes to the National Planning Policy Framework which were
broadly aligned to our policy asks. We submitted our own responses
to the range of consultations that have been released by
government, alongside actively shaping wider sector responses. This
includes the consultation on social housing rents that closed
shortly before Christmas.
For more information, please
contact:
Anup Dholakia,
Treasury Director, Sovereign Network Group
07920205992
Tim Taylor, Director of
Communications and External Affairs, Sovereign Network
Group
07795470472
Disclaimer The information contained
herein (the "Trading Update") has been prepared by Sovereign
Housing Association Limited trading as Sovereign Network Group (the
"Parent") and its subsidiaries (the "Group"), including Sovereign
Advances Ltd, Sovereign Housing Capital PLC (the "Issuers") and is
for information purposes only.
The Trading Update should not be
construed as an offer or solicitation to buy or sell any securities
issued by the Parent, the Issuers or any other member of the Group,
or any interest in any such securities, and nothing herein should
be construed as a recommendation or advice to invest in any such
securities.
Statements in the Trading Update,
including those regarding possible or assumed future or other
performance of the Group as a whole or any member of it, industry
growth or other trend projections may constitute forward-looking
statements and as such involve risks and uncertainties that may
cause actual results, performance or developments to differ
materially from those expressed or implied by such forward-looking
statements. Accordingly, no assurance is given that such
forward-looking statements will prove to have been correct. They
speak only as at the date of the Trading Update and neither the
Parent nor any other member of the Group undertakes any obligation
to update or revise any forward-looking statements, whether as a
result of new information, future developments, occurrence of
unanticipated events or otherwise.
None of the Parent, any member of
the Group or anyone else is under any obligation to update or keep
current the information contained in the Trading Update. The
information in the Trading Update is subject to verification, does
not purport to be comprehensive, is provided as at the date of the
Trading Update and is subject to change without notice.
No reliance should be placed on the
information or any projections, targets, estimates or forecasts and
nothing in the Trading Update is or should be relied on as a
promise or representation as to the future. No statement in the
Trading Update is intended to be an estimate or forecast. No
representation or warranty, express or implied, is given by or on
behalf of the Parent, any other member of the Group or any of their
respective directors, officers, employees, advisers, agents or any
other persons as to the accuracy or validity of the information or
opinions contained in the Trading Update (and whether any
information has been omitted from the Trading Update). The Trading
Update does not constitute legal, tax, accounting or investment
advice.
www.sng.org.uk/working-with-us/investors
Note: Figures quoted in the update
are based on unaudited management accounts which are subject to
review and further adjustments, for example in the areas of
pensions, investment property valuation and taxation.
