The following trading update compares Paradigm Housing Group Limited's ("the Group") unaudited accounts for the six months ending 30 September 2025 with the unaudited equivalent position for the six months ending 30 September 2024.
· The Group has seen an increase of £0.4m (1.3%) in operating surplus to £32.3m (30 September 2024: £31.9m).
· Income from rents has increased due to the annual formula uplift of 2.7% along with rents from new homes.
· Operating costs have increased to reflect inflation, additional homes and one off costs. As a result, the overall operating margin has decreased from 41.4% to 40.6%.
· 84 shared ownership homes have been sold in the six months to 30 September 2025 (30 September 2024: 77 homes) generating a margin of 21.1% (30 September 2024: 23.8%).
· 18 outright sales homes have been sold via our sole Joint Venture in the six months to September 2025 (30 September 2024: 13 outright sales homes) generating a surplus of £0.1m (30 September 2024: £0.2m).
· Sales of existing homes and staircasing has increased resulting in a £2.7m surplus (30 September 2024: £2.1m).
· The Group continues to invest, spending £23.0m in the first six months of the year (30 September 2024: £24.5m) investing in and maintaining our existing homes and £55.8m on completing new homes (30 September 2024: £45.7m). 131 new homes have been delivered (30 September 2024: 160) for rent or shared ownership.
Nicola Ewen, Chief Financial Officer said: "We are continuing to meet our objectives for the final year of our 2021-2026 corporate plan despite the uncertain economic backdrop. Our operating margin of 40.6% reflects our on-going financial strength. We continue to focus on investment in existing homes and building new homes in our operating area. We look forward to our upcoming merger with Settle to enhance delivery of these objectives".
Turnover from rents and other income increased by 5.3% to £68.1m.
Turnover from 1st tranche property sales decreased from £12.4m to £11.4m. There was an increase in the number of homes sold from 77 to 84, however the average share is lower than last year. We completed 131 homes during the six months ending 30 September 2025 compared to 160 in the equivalent position for the six months ending 30 September 2024.
We continue to build new homes with 131 homes completed in the six months to 30 September 2025 (30 September 2024: 160).
Operating costs have increased by 7.6% to £41.0m driven by inflation and increased activity and one off costs. Our operating cost per property has increased by 11.6% to £4,876 (30 September 2024: £4,370).
Cost of 1st tranche sales decreased by 4.3% to £9.0m as a result of a reduction in the number of properties sold. Our overall margin on 1st tranche sales for the six month ending 30 September 2025 is 21.1% (30 September 2024: 23.8%).
The number of existing homes sold and tenants purchasing additional shares (staircasing) has increased resulting in a 28.6% increase in the surplus on sale of fixed assets from £2.1m to £2.7m.
Interest and funding costs have increased by 12.5% to £19.8m as a result of an increase in our debt at a higher interest rate to fund our development programme.
Housing properties have increased by £110.7m to £1,771.0m as at 30 September 2025. This increase is due to £123.3m spent on building new homes and £14.4m of property improvements over the 12 month period, offset by depreciation and stock disposals.