RNS announcement

 Karbon Homes Group: Annual Review and Financial Statements to 31st March 2025 

 Karbon Homes is a housing association that owns or manages around 34,000 homes across the North East of England and Yorkshire within diverse communities facing a range of challenges and opportunities.

We are pleased to publish our financial statements to 31 March 2025.

A full pdf copy of the financial statements is attached to this announcement and is also available via the company's website at www.karbonhomes.co.uk/corporate/

* Excludes housing sales, disposals, revaluations and negative goodwill.

**RSH Value for Money definitions.

Commenting on the results, Scott Martin, Executive Director of Resources at Karbon Homes, said:

"Despite the continued pressures on the business, with increased inflation, higher interest rates and ongoing regulatory changes, we've had a year of strong performance with lots of success stories to celebrate. 

"We've maintained our 'A' credit rating from S&P Global, a rating underpinned by our solid financial metrics.

"Our stable outlook reflects our continued focus on our core business of providing high quality homes at social and affordable rents.

"In particular, it highlights our capacity for continued investment in our existing homes, along with our commitment to building safety and improving the energy efficiency of our homes. 

"We have invested over £99.6m on planned and responsive investment and our place-based property services model has continued to focus on preparing for Awaab's Law and delivering energy improvement measures.

"Alongside ensuring our customers are safe and secure, this focus has also helped us achieved yet another strong year of results from our annual tenant satisfaction measures.

"Boosted with funding from our Strategic Partnership with Homes England, our commitment to developing more, much-needed homes has seen us complete 707 new homes across the North East and Yorkshire.

"This continued growth plays an important role in tackling the ever-growing requirement for more affordable housing in our region.

"To maximise our future delivery of new affordable homes, we're exploring possible new investment partners to work with us through our recently established subsidiary, Graphite Living .

"We are currently progressing with a registration with the Regulator of Social Housing for Graphite Living.

"The Karbon Group had further growth when it welcomed Leazes Homes as a subsidiary in June 2024.

"A Newcastle based housing provider with 759 homes, Leazes Homes has helped us strengthen our presence in the city, which in turn helps generate greater capacity to invest in our homes. 

"None of these achievements would have been possible without the hard work and dedications of our colleagues. I'm incredibly grateful for their commitment to delivering the best possible services and support for our customers across the North East and Yorkshire.

"Starting off this new financial year, we welcomed the announcements that were made in the Government's July spending review, of a long-term rent settlement, a new £39billion Social and Affordable Homes programme and the launch of a consultation on rent convergence.

"We await further details such as grant levels within the new Social And Affordable Homes Programme and any additional investment requirements that will come about as a result of the Decent Homes Standard consultation.  From there we will refresh our business plan, continuing to fund our three strategic priorities of homes, customer and place.

"But as S&P's comments from their latest assessment state, we're a group with a 'continued focus on low-risk operations and predictable revenue sources, limited exposure to sales and sound management practices'. This will stand us in great stead as we continue to build a strong foundation for life for our customers."

*Tax and other in FY 2025 comprises: negative goodwill on merger with Leazes (£2.15m), tax on surplus (-£0.06m), loss on fixed asset disposals (-£0.30m), and gain on revaluation of investment properties (£0.70m).

For further information, please contact:

James Clifford, Assistant Director of Strategic Finance and Treasury

james.clifford@karbonhomes.co.uk