A2Dominion Housing Group Ltd
15 September 2026
RNS Announcement 2026
A2Dominion - sound finances and continued focus on core services
The group has prioritised improving delivery of services to residents, which included significant investment of over £83 million into improving and maintaining existing homes, with a particular focus on response time and quality of repairs. The Group also invested in new systems and processes which will lead to greater customer satisfaction as these become embedded in enhanced service delivery.
We delivered £14.8 million of savings in the year, as part of our increased focus on value for money, and this has helped to mitigate increases in costs elsewhere including the costs of investing in customer improvements.
During the year to 31 March 2026 the Group continued further on the path of business simplification. The objective is to dispose of non-core activities that could be better served by other parties, freeing up both capital and management resource to focus upon our core social housing customers.
The business simplification decisions already taken have strengthened the Group's long-term finances and also fed through to the results for the years to 31 March 2025 and 2026:
· In the 2025 year we sold our temporary housing to Westminster City Council realising a very significant one-off surplus. This accounts for the £99.5 million fall in surplus on sale of fixed assets year on year.
· As part of our strategy to derisk the organisation we continued to scale back significantly on development of new homes which affected profits from first tranche sales, development and land sales, all of which fell significantly.
At 31 March 2026 the Group held £156.5 million cash reserves arising from the sale of temporary housing and other asset sales. These are being held to provide funds to redeem bonds which fall due for repayment during the 2026/27 year. Consequently, interest receivable increased substantially resulting in the fall in net interest costs as detailed in the table below.
A2Dominion Chair, Alan Collett said "We are reporting a surplus before taxation of £3.3 million for the 2025/26 financial year and have maintained our Fitch A credit rating (outlook negative). In comparison, last year's result was boosted by significant income from the sale of some of our temporary accommodation in Westminster. We recognise challenges continuing across our sector, including higher operational costs, slower sales and wider economic uncertainty. The Group continues to look at various ways to mitigate these external pressures and is assisted by a balance sheet that remains robust, underpinned by strong liquidity and over £3.5 billion in assets and investments."
Key highlights from the report
· 38,000+ homes in management
· 70,000+ customers
· £342.0m turnover
· £68.8m operating surplus
· Fitch A (negative outlook) credit rating maintained
· £1.1bn of net assets
· 102,875 responsive repairs carried out
· £34.7m spent on day-to-day repairs
· £48.7m spent on major repairs, planned works and investment in existing homes
· Strong liquidity; £156.5m of cash deposits, plus a further £383.7m of undrawn loan facilities
· £1.4bn of loans and borrowings, plus £2.1bn of unencumbered assets
The full audited financial statements can be found in the following location: https://www.a2dominiongroup.co.uk/about/reports-and-accounts
|
Turnover |
342.0 |
421.5 |
|
Cost of sales |
(27.7) |
(82.1) |
|
Operating costs |
(265.8) |
(275.5) |
|
Surplus on sale of fixed assets |
17.0 |
116.5 |
|
Share of jointly controlled entity operating profit |
3.3 |
5.3 |
|
Operating surplus |
68.8 |
185.7 |
|
Operating margin |
20.1% |
44.1% |
|
Net interest charges |
(58.7) |
(64.9) |
|
Surplus after interest charges |
10.1 |
120.8 |
|
Change in fair value of investments, financial instruments and investment properties |
(6.8) |
(20.8) |
|
Surplus before taxation |
3.3 |
100.0 |
|
Tax on surplus on ordinary activities |
(1.3) |
16.8 |
|
Non-controlling interest |
(0.3) |
(0.4) |
|
Surplus for the financial year |
1.7 |
116.4 |
|
Fixed assets and investments |
3,346.2 |
3,419.7 |
|
Current assets |
291.5 |
362.7 |
|
Creditors including loans and borrowings |
(1,537.8) |
(1,639.5) |
|
Deferred grant |
(954.3) |
(1,002.3) |
|
Non-controlling interest |
(2.3) |
(2.0) |
|
Net reserves |
1,143.3 |
1,138.6 |
A copy of the Annual Financial Statements will shortly be submitted to the National Storage Mechanism and be available to view. https://data.fca.org.uk/#/nsm/nationalstoragemechanism
Investors
For further information, please contact:
Dominic Smith - Treasury Manager
A2Dominion Housing Group
113 Uxbridge Road
Ealing
London W5 5TL
Email: dominic.smith@a2dominion.co.uk
Media
For media enquiries, please email media@a2dominion.co.uk
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
ENDRNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.