Midland Heart reports strong financial performance and makes record investment pledge
18th Aug 2025 - Investor news
Midland Heart has published another robust set of financial results for the last 12 months, shortly after unveiling plans to invest a record £300m on upgrading its homes.
In 2024/25, Midland Heart reported an annual turnover of £243.1m, an increase of £11.2m on the previous year and an increased total surplus of £25.5m, driven largely by the sale of 23 supported housing schemes to a specialist Extra Care and Retirement Living provider.
Other highlights include an operating margin of 26.6% and interest cover of 372%. Despite experiencing additional inflation-driven costs and regulatory requirements, £108m was invested in new homes for tenants and almost £35m in improving existing homes. These improvements include over 2,000 new kitchens and bathrooms, and the replacement of approximately 670 windows and 260 roofs, enhancing the warmth, comfort and energy efficiency of each home.
Midland Heart’s ambitious housing delivery target of 4,000 homes between 2019-25, was successfully met in March of this year, with over 800 homes completed in the past 12 months alone.
This year’s financial results come shortly after the launch of Midland Heart’s new corporate strategy, Tenants at Heart, a five-year plan to 2030, underpinned by a commitment to delivering more affordable homes and further investing £60m/ year in improving the quality of existing homes. Planned upgrades include a range of retrofit measures aimed at improving energy efficiency and minimising the risk of damp and mould.
While undeniably ambitious, the organisation remains confident in its ability to deliver on these goals, without compromising the quality of its service delivery. This is reinforced by Midland Heart’s recent assessment by the Regulator for Social Housing, which awarded the organisation top ratings of G1, V1, and C1. The newly introduced C1 rating recognises excellence in service standards and tenant communication, with Midland Heart’s approach to service improvements described as ‘efficient, effective and timely.’
As each year passes, we continue to meet our targets and raise the bar, and the last 12 months were no exception. As we enter the first year of our new corporate plan, we do so from a position of financial and operational strength, ready to deliver a record £300million investment in the quality and energy efficiency our homes, making a real difference for our tenants.
Glenn Harris, Chief Executive of Midland Heart
Despite ongoing economic and social challenges, we’ve worked hard to make sure we remain financially robust and that our resources are balanced in meeting the needs of our existing and future tenants. Thanks to our financial resilience and strong relationships with lenders and investors, we are well-positioned to build on our achievements to date and continue driving greater outcomes for our tenants.
Joe Reeves, Deputy Chief Executive of Midland Heart
