3rd Quarter Results

  Sovereign Network Group's Quarterly Performance Update covering unaudited Q3 results for the financial year 2025/26

Sovereign Network Group (SNG)

Sovereign Network Group is the sixth largest housing association in the UK in terms of unit size with over 85,000 homes, with a core geographical focus in the South of England and London and an ambition to develop 25,000 homes over the next 10 years.

Quarter 3 Performance Update - period to 31 December 2025

Sovereign Network Group's unaudited underlying financial performance in Q3 FY26 shows a slight reduction in operating surplus against the previous quarter, but year on year growth against Q3 FY25. Core lettings turnover also increased year on year owing to additional income from new homes and the rent uplift.

The development programme produced 405 handovers in Q3. 173 sales were achieved in Q3 FY26, contributing to a YTD total of 467. The run rate continues to trend positively compared to Q1 and Q2. Sales volumes are consistent with Q3 FY25, while proceeds and surplus exceed prior year performance.

Treasury

As at Q3 FY26, SNG had total long-term facilities of £5,436 million. £4,346 million of which were drawn, with £1,090m of available liquidity facilities and cash of £71m.

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.

Customer Services

The Customer Influence Panel (CIP) has now completed its first full year, with members continuing to work closely with colleagues across all directorates. In Q3, the CIP reviewed our Damp & Mould and Repairs Policies and supported the procurement process for a new SNG cleaning contract across our operational geography.

The panel also completed its second scrutiny project, focusing on access for Stock Condition Surveys. This work resulted in a series of recommendations to help us better engage with customers who currently do not allow access to their homes.

In addition, we launched our Big Community Conversation Programme, which will see staff volunteers carrying out door knocking and engagement days across 12 communities throughout 2026. We secured £120k in partnership funding with Clarion Housing Group and Camerados to explore how Public Living Rooms at these events can help strengthen informal engagement, ultimately supporting pathways to more formal involvement.

Communities and Sustainability

In Q3, SNG measured £13m of social value across Community Investment and the wider business, taking our year to date figure to £62.9m slightly behind the Q3 target of £65m. Our Employment Support team have worked with customers to achieve 325 jobs, and 1,920 training outcomes. We've partnered with 158 community organisations, providing 119 quality support interventions to increase our partner's sustainability and capacity. Our 'Support for you' programme has connected 2,029 customers with the right support resulting in 5,452 financial inclusion outcomes including support with food, furniture and fuel and 552 digital inclusion outcomes, providing training and devices to get online.

Corporate Affairs 

In Q3, corporate affairs engagement focused on thought leadership contributing to the public debate on housing. We have been building support for our New Towns in Old Towns strategic partnership model for housing-led regeneration in existing towns in the south of England, and developing our thinking around what a long-term funding model for social housing could look like, enabling the sector to deliver social housing for generations while ensuring the public purse retains the benefits.

We have represented the sector at key events at the Labour Party conference, and built relationships with senior stakeholders, including the new Chief Executive of Homes England, Amy Rees, and senior colleagues at the West of England Combined Authority.

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 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.