RHP’s 18/19 trading update published

10th June 2019

This week saw RHP issue our trading update* for the 2018/19 period.

Keep highlights from this update includes:

  •  Turnover for the period was £58m (2018: £56m).
  • Social housing lettings turnover contributed 87% of total turnover (2018: 91%).
  • Operating surplus (including asset sales) for the period was £21m (2018: £21m).
  • Operating margin on social housing lettings was 39% (2018: 43%).
  • Overall operating margin (including asset sales) was 36% (2018: 38%).
  • Overall operating margin (excluding asset sales) was 35% (2018: 37%).
  • Net margin on shared ownership (first tranche) was 22% (2018: N/A).
  • The surplus after tax for the period was £13m (2018: £13m).
  • Asset gearing as at 31 March 2019 was 51% (2018: 52%).
  • Return on capital employed for the period was 5.4% (2018: 5.9%).

RHP’s Executive Director of Finance, Corinna Bishopp, commented on the results: “This update is particularly interesting as it falls within the first year of our new 5-year strategy which includes our aim to build 1,000 new affordable homes.

We are excited to have delivered 100 new affordable homes in the year. We have continued to modernise our service and improve efficiency whilst maintaining strong margins and financial performance. As a result of our development programme, S&P Global reviewed our credit rating and awarded us an A+ (stable) rating down from an AA- (negative) in line with our expectations.

We look forward to continuing successes in delivering new homes (which does not include any market sale programme) whilst continuing to drive operating efficiencies and strong financial results.”

View the complete set of results below:  

Unaudited Financial Metrics

Statement of comprehensive income

31 Mar 2019


31 Mar 2018





Turnover from social housing lettings






Operating surplus (including asset sales)



Surplus after tax







31 Mar 2019


31 Mar 2018





Operating margin ₁ on social housing lettings ₂



Overall operating margin ₃ (exc asset sales)



Overall operating margin ₃ (inc asset sales)



Operating margin on shared ownership (first tranche) ₄



Key financial ratios


31 March 2019





EBITDA MRI / Interest cover ₅



Gearing ₆





31 March 2019





24 month liquidity requirement ₈



Cash and undrawn facilities ₉



Unencumbered stock(EUV-SH)






Credit ratings








A+ (stable)



₁ Operating surplus / Turnover

₂ General Needs, Supported housing, Affordable rent and Low cost home ownership tenures

₃ Operating margin including asset sales includes all activity; operating margin excluding assets removes gain or loss on disposal of assets including first tranche shared ownership sales

₄ Operating surplus on First tranche shared ownership sales / Turnover from first tranche shared ownership sales

₅ (Operating surplus + Depreciation + Amortisation – Capitalised major repairs) / Net interest paid

₆ Net Debt / Housing assets at historic cost

₇ Net debt / Total units owned & managed

₈ 24 month cashflow requirement

₉ Cash and undrawn RCF  

This trading update contains certain forward looking statements about the future outlook for RHP. These have been prepared and reviewed by RHP 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 difference. Additionally, the information in the statement should not be construed as solicitation/recommendation to invest in RHP’s bonds.

*Please note, the figures presented are unaudited and for information purposes only.

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