SNG's Performance Update for year 2024/25

SNG reports strong financial performance and increased investment in homes and communities

SNG (Sovereign Network Group) has published its 2024/25 annual report, highlighting a robust financial position that has enabled it to continue to deliver new affordable housing at scale, significantly invest in its existing homes, and step up support for customers and communities.

SNG's operating surplus increased by 19.7% (£33.7m) to £205 million (2023/24: £171.5 million) while turnover increased by 12.2% to £794.2 million. The Group's strong balance sheet reflects total net assets of £2.8 billion and fixed assets of £7.9 billion (2023/24: £7.3 billion), underlining its long-term financial resilience.

As at 31 March 2025, SNG held £761 million in cash and undrawn facilities, supporting both operational and development ambitions. Net debt stood at £3.9 billion.

This financial strength enabled SNG to invest £642 million in building new homes (up from £488 million), with 2,486 started in the year, and 1,590 delivered during the year. SNG maintains one of the sector's largest development pipelines with 11,300 homes - 90% of which are affordable.

Investment in existing homes also increased to £245 million, providing continued improvements in quality in-line with SNG's Homes and Place standard - a benchmark co-created with customers that supports effective asset management.

Alongside its core housing activity, SNG expanded its support for customers and communities. £7 million was invested in community programmes, including £1.5 million in cost of living support. An additional £2 million was secured from external partners, enabling support for 242 local organisations such as community kitchens, warm spaces, and mental health support.

Employment and enterprise initiatives helped over 380 customers into work and supported more than 110 customers to start or grow a business. In addition, over 4,000 targeted interventions were delivered to tackle fuel poverty.

Mark Washer, Group Chief Executive of SNG, said: "Our financial results reflect the strength and stability that SNG has achieved since our merger. This has enabled us to deliver confidently on our social purpose - investing more in existing homes and building the new affordable homes that are the foundation for a better life.

Last year, the number of children living in temporary accommodation across England rose again to 165,000 - a stark reminder of why the work of housing associations like SNG has never been more critical. In an increasingly challenging environment, I'm proud that we continue to buck the trend as one of the sector's most ambitious housing associations".

Alongside the annual report SNG published its Impact and Sustainability Report, which showed that SNG generated a social value of £140.6m last year - up 37% from £102.3m last year. The upcoming SNG Community Foundation will build on this, aiming to unlock £1bn of social impact in SNG communities over the next ten years.

Mark Washer added: "SNG's customers are at the heart of everything we do. Our Impact and Sustainability report shows that by working with our customers and partners we can support communities to realise their potential and thrive over generations."

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.

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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.