We aim to be the leading provider of flexible housing solutions in Southern England.
We have a strong business plan, and are committed to using our financial capacity to grow the business and provide new homes. To meet our aim we need a diverse range of funding which is cost-effectively structured to provide the necessary investment funds and maintain liquidity.
Part of our strategy includes raising capital through bond issues.
After our first successful attempt in 2009 our second £250m bond issue in May 2012 proved extremely popular with investors, with a then sector-leading rate of 4.77% being achieved.
We will continue with this approach to allow us to invest in affordable housing through development and acquisition.
Changes to our structure
Sovereign has grown significantly over a number of years as a result of partnerships with other housing associations, the development of new homes and the acquisition of stock. We are now one of England’s largest housing associations, with over 36,000 homes in management and a medium-term target of growing to 50,000 units.
In 2011, we formed a new single unified legal entity: Sovereign Housing Association Limited. The move to a single company provides the opportunity to maximise the use of our assets and achieve significant efficiencies.
Our Board is committed to the value for money agenda and, in just two years, savings of £10 million have already been achieved. We have targets to achieve further 5% savings year-on-year. The opportunity to bring assets together across the business also allows us flexibility in their management to maximise value.
Our financial position
Our strategy remains one of steady growth, with investment enhancing the value of the business. This approach has resulted in the strong balance sheet and business plan that underpins the business today and gives us real choices in investment going forward.
Budget 2012/13: - Turnover = £194m
- Operating surplus = £63m
- Surplus = £22m
Our ratings and assessments
Sovereign has one of the strongest ratings in the sector.
Ratings: - Moody's rating of Aa3
- Standard & Poor's rating of AA
Assessments
We were awarded the highest rating by the Tenant Services Authority (TSA) in its annual review of our financial viability.
The TSA was the official regulator for social housing. Its regulatory function has now transferred to the Homes and Communities Agency.
If you’re interested in becoming an investor, contact our Finance Director Martin Huckerby on 01635 572201 or by
email or our Head of Corporate Finance, Philip O'Brien on 01635 572191 or by
email.
“Sovereign's SACP [stand-alone credit profile] is supported by the strong demand for social housing in the areas where it operates, its large portfolio diversified across south and south west England, and its strong financial performance relative to the sector." Standard & Poor's October 2012
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