Major Yorkshire landlord back in surplus as costs reduced

Together’s spending on its refurbishment-led private finance initiative (PFI) with Salford City Council – Pendleton Together – reduced to £11.8m, from £30.8m the year before. 

In its 2023-24 financial year, Together was hit by an impairment of £6.3m related to “significant” remediation work needed on two high-rise blocks.

In the wake of the Grenfell Tower fire in 2017, cladding was removed from nine blocks that are part of the PFI. 

Work to date includes internal fire doors, sprinkler systems and “significant remediation”, Together said. 

“Work is now underway to re-clad all the tower blocks with the aim to complete the programme by December 2025, with spend of £28.2m in the financial year,” Together added in its latest financial statement.

However, the group’s overall investment in existing stock decreased slightly to £72.8m, compared to £75.6m the previous year.

Overall, Together saw its operating margin recover to 18 per cent, up from 0.5 per cent the year before. 

Together’s turnover was boosted by rental income increasing to £188.8m, but first tranche shared ownership sales dipped to £15.1m, compared to £17.8m the year before.

The landlord also fared less well on development as its completions nearly halved to 564, down from 1,038 the previous 12 months. 

In its latest year, Together recorded an EBITDA MRI figure of 47.6 per cent. This was a marked improvement from last year’s figure of negative 109.2 per cent, due to lower repairs and maintenance costs, decreased major repairs costs and higher interest receivable, the group said. 

Gearing was 55.9 per cent, against 54.8 per cent the prior year. 

As of 31 March 2025, Together had £851.3m debt in bank loans and bonds, with nearly £47m cash. 

Last year, the landlord become the first registered provider to secure funding from NatWest adhering to green loan principles. 

Together currently has G1/V2/C2 grades with the regulator. It has an A3 credit rating with Moody’s, with an outlook of ‘negative’, reflecting broader sector trends.