Unaudited results for 31 March 2025

Saxon Weald Group (incl. Saxon Weald Capital Plc) - Trading update for the year ending 31 March 2025

Saxon Weald Group is today issuing its consolidated trading update for the year ended 31 March 2025. These figures are unaudited and for information purposes only. Highlights for the period ending 31 March 2025:

· Saxon Weald owns and manages 6,939 homes;

· Turnover for the period was £58.6m (2024: £56.8m);

· Social housing lettings turnover contributed 91% of total turnover (2024: 88%);

· Operating surplus (including asset sales) for the period was £18.8m (2024: £18.6m);

· Operating margin on social housing lettings was 22% (2024: 21%);

· Overall operating margin (including asset sales) was 32% (2024: 33%);

· Overall operating margin (excluding asset sales) was 24% (2024: 25%);

· Net margin on shared ownership (first tranche) was 18% (2024: 28%);

· The surplus after tax and pensions for the period was £5.6m (2024: deficit £2.0m);

· Debt ratio was 51% (2024: 57%); and

· Return on capital employed for the period was 4.3% (2024: 4.4%).

Commenting on the results, Michael Chinn, Executive Director of Finance & Governance, said:

Saxon Weald has focussed on improvements to services and operational effectiveness during a year of continued challenges for our customers with sustained high cost of living.

Operational focus turned to improvements in our turnaround time for empty homes which was falling behind target and delaying the availability of homes for new customers. At the end of the year, we successfully returned to our target and the improvements to our approach are embedded to ensure that our homes are made available as soon as possible. The previous year's improvements to our repairs service, with more first-time fixes and repairs completed within target, have been maintained and then built on, which is reflected in our customer satisfaction levels.

Our commitment to the condition of our customers' homes drives Saxon Weald's asset data enhancement initiative which informs our property investment plan. In 2024/25, we surveyed 25% of our homes and next year we are surveying 25% to bring greater visibility to the standards of our homes.

As we drive an improvement in asset data, we proactively seek ways to strengthen our approach to property safety management. Through this approach in 2024/25, we identified a number of fire safety actions which required action without delay, and we mobilised significant resources to ensure that customer safety was assured, and issues were rectified.

We recognise the improvements made and our proactive approach in Saxon Weald's strong Tenant Satisfaction Measures, particularly the steady improvement in overall customer satisfaction which achieved 81.4% (2024: 80.4%).

Approaching the future of Saxon Weald's operational efficiency, we have commenced a transformation programme which replaces Saxon Weald's legacy systems with a modern software solution and a fully integrated contact centre. We will deliver streamlined processes and improved access to data which improve Saxon Weald's ability to make informed decisions on shaping our services and delivering quality homes for our customers.

Unaudited Financial Metrics for the year ending 31 March 2025

Statement of comprehensive income

· Turnover was £58.6m (2024: £56.8m);

· Turnover from social housing lettings was £53.4m (2024: £50.1m);

· Operating surplus was £18.7m (2024: £18.6m); and

· Surplus for the year before actuarial position on pensions was £5.6m (2024: £6.2m).

Margins

· Operating margin[1] on social housing lettings[2] was 22% (2024: 24%);

· Overall operating margin (incl. asset sales) was 32% (2024: 33%);

· Overall operating margin (excl. asset sales)[3] was 24% (2024: 25%); and

· Operating margin on shared ownership (first tranche)[4] was 18% (2024: 28%).

Key financial ratios

· EBITDA MRI Interest cover[5] was 121% (2024: 215%); and

· Gearing[6] was 51% (2024: 57%).

Liquidity

· 24-month liquidity requirement[7] was £36m (2024: £8m);

· Cash, short term investments and undrawn facilities[8] were £103m (2024: £97m); and

· Unencumbered stock (EUV-SH) was £125m (2024: £120m).

Credit rating

· Moody's, January 2025, A3 (stable)

This trading update contains certain forward-looking statements about the future outlook for Saxon Weald. These have been prepared and reviewed by Saxon Weald only and are unaudited. Forward looking statements inherently involve a number of uncertainties and assumptions. Although the Directors believe that these statements are based upon reasonable assumptions on the publication date, any such statements should be treated with caution as future outlook may be influenced by factors that could cause actual and audited outcomes and results to be materially different. Additionally, the information in the statement should not be construed as solicitation/recommendation to invest in Saxon Weald's.

For further information, please contact Michael Chinn, Executive Director of Finance & Governance

Email: [email protected]

www.saxonweald.com/investor-relations