Catalyst Housing Limited Annual Financial Report

Peabody Group incorporating Peabody Capital Plc, Peabody Capital No.2 Plc, and Catalyst Housing Limited

Peabody and Catalyst have today announced their results for the year to 31 March 2022, the last period before the two organisations joined together on 1 April 2022. The results reflect the joining together of two financially strong organisations. Together, the organisations are well placed to ensure the Peabody Group scales up its positive impact even further from April 2023.

The new organisation will focus on getting the basics right, including providing an effective repairs service, investment in homes, and it will introduce a new locality model to get closer to its customers and provide simple and easy access to services. By joining together, the group will also be able to go further and faster on building safety and sustainability, and continue to invest in placemaking, communities, and care and support services. 

The group continues to be a strong investment proposition, holding an A3 rating from Moody's and an A- rating from S&P Global. The organisation is a G1/V2 rated entity by the Regulator for Social Housing.

Peabody

Peabody Group generated a pre-tax surplus for the year of £169m which was fully invested. Total turnover was £664m, with an operating margin of 32% and a social housing margin of 30%.

Peabody increased its investment in existing homes to £113m including £40m on building safety work taking cumulative capital spend in the last four years to £124m. This represents significant progress in the risk-based programme which continues to be a principal focus for the Group.

Peabody invested £355m in new homes, with 1,669 starts on site and 866 completions. Seventy-four per cent of these were for affordable tenures. Completed new homes included the award winning 130 homes at Southmere in Thamesmead alongside a new library and community building. The "whole place" approach to managing and growing the town for the long-term saw continued investment in the public realm and natural environment in 21/22, as well as the growth of community-led influencers and networks to co-design and deliver activities locally.

Peabody issued its first sustainability bond for £350m in March 2022, allowing further investment in energy efficient new homes and improvements to existing homes. Several sustainability linked loans were also completed throughout the year. In total, Peabody has available debt funding of £4.6bn, with 38% gearing and access to a further £2.7bn of unused property security.

Catalyst

The Catalyst Group generated a pre-tax surplus for the year of £171m including £125m being the non-cash gain arising from Rosebery Housing Association joining the Group from 1 April 2021. Total turnover for the year was £299m, whilst the social housing margin was 28%.

Catalyst invested £128m in new homes, £28m in its existing homes, and £3m in the community foundation.

Catalyst completed 569 new homes during the year of which over 90% were affordable tenures. The completed new homes included The Etch at the Printworks in Dunstable, Bedfordshire that won best shared ownership home at the Evening Standard Awards.

Catalyst had available debt funding of £1.8bn, with 41.5% gearing and access to a further £1bn of unused property security.

Other matters

Peabody and Catalyst remained at the forefront of ESG within the sector during the year and they continue to strengthen their credentials. The group delivered its first reports under the Sustainable Reporting Standard for Social Housing, which they were instrumental in developing. They both also hold frontrunner status through the Ritterwald Certified Sustainable Housing Providers label.

Peabody's average weekly rent is £122 per week, reflecting an annual subsidy of £20m against target rents. Rents were £478m lower than market rents last year which is a significant contribution to the social and economic circumstances of people living in Peabody neighbourhoods. 

Catalyst's new wellbeing team received almost 2,500 referrals during 21/22, supporting people with their mental and physical health, tackling loneliness and isolation, and helping to develop skills, employment and training opportunities. The team also helped customers reduce rent arrears by over £100,000 during the year. 

Peabody Group's Chief Financial Officer, Eamonn Hughes said "This is a strong set of financial results that allows us to progress in bringing together two financially robust organisations with confidence, delivering on our shared objectives to make a positive impact for people in London and the home counties.

"This is a challenging environment for our customers and us, with rising costs, and competing demands for investment. With a flexible approach, we have responded to difficult market conditions and focused our resources accordingly. 

"We have been working hard to maintain our performance which has allowed us to increase investment in existing homes, whilst continuing to build much needed new homes, regenerate places, and support our residents. We are continuing investment in our communities, helping people prosper and flourish with tailored support, programmes and partnerships. We have also expanded our energy advice services and action to improve the energy efficiency of our homes for the long-term."

For more information contact: Benjamin Blades, Assistant Director of Corporate Affairs, Peabody at Benjamin.Blades@peabody.org.uk or Anthony Marriott, Director of Treasury & Corporate Finance, Peabody at Anthony.Marriott@peabody.org.uk