Town and Country Housing: First Half Year Trading Statement

2 December 2022

Town and Country Housing (TCH) is today issuing its consolidated unaudited trading statement, for the first half of the financial year ending 31 March 2023.

Note: No assumption is made about any gain on revaluation of investment properties in either year, as revaluation is undertaken at year end.

TCH became part of Peabody Group on 9 May 2019 and will continue as an operating subsidiary.

Rental income from the core business continued to perform strongly, however maintenance costs are £1.0m higher than in 2021. This is due to clearing a backlog of repairs jobs and preparing for the start of the reprocured major repairs contract. There is also additional expenditure on fire safety remedial works.

Shared ownership 1^st tranche sales and private sales generated a surplus of £0.9m which was £1.7m below 2021. This is due to the timing of handovers and sales which are skewed to the 2^nd half of 2022.

At 30 September 2022 TCH had 22 properties for sale. 15 properties were reserved. Of the remaining 7 available properties, 1 has been void for greater than 6 months (a show home which has since been sold).

Disposal of assets provided a further £1.8m of surplus.

Net interest payable was ahead of 2021 which was due to a combination of higher interest rates and higher debt (funding new developments).

In October, S&P Global Ratings put Peabody's rating ('A-') to a negative outlook. This was in response to their reassessment of the outlook for the UK sovereign to negative. At the same time Town & Country Housing's was outlook was similarly changed. This was because S&P considers TCH to be a core subsidiary of Peabody.

Future Information Releases

The next financial reporting will be the statutory financial statements which we expect to release in late July / early August 2023.

Further Information

For further information contact Mike Hyams, Regional Finance Director at mike.hyams@tch.org.uk