Last checked at 26 Apr 2018 07:00
Longhurst Group Trading Update for the period ending 31 December 2017
Longhurst Group ("LG") is today issuing its consolidated unaudited trading update for the nine months ended 31 December 2017.
The Statement of Comprehensive Income Comparatives (SOCI) are to LG's consolidated unaudited results for the nine months ending 31 December 2016. These results do not include the results of Axiom Housing Association Limted ("Axiom") who joined the Group on 07 July 2017. Axiom is to be accounted for as an acquisition for the purposes of the 2017/18 Financial Statements.
Highlights
· Total turnover for the period was £108.8m, an increase of 29.3% on the prior year. The increase is due to the results of Axiom being included from July to December and the increase in turnover from property sales.
· Turnover from Property Sales was £23.5m up from £9.9m in 2016 with a margin of 21.7% down from a margin of 34.5% in 2016.
· Net operating margin was 31.02% down from 36.16% in 2016.
· Negative goodwill written off following the acquisition of Axiom was £5.2m.
· At 31 March 2018 LG's void loss was 0.90% and arrears performance was 2.32%
Commenting on the results to the 31 December, Robert Griffiths CFO and Deputy CEO
"LG's operating surplus for the period to the end of December was just under £2m better than budget at £33.76m.
The margin on low cost home ownership ("LCHO") sales and market sales was 21.7% to 31 December 2017, down from 34.5% for the same period in 2016. The lower net sales margin reflects the change in mix in LG's sales programme with less section 106 LCHO sales in 2017 as a proportion of total sales; section 106 LCHO sales traditionally achieve a higher margin of up to 30%.
Excluding the write off, of negative goodwill, LG now expects the surplus for the year after tax to be just over £20m against a budget of £19.8m.
Housing Completions
LG has completed 400 new homes in the nine months to 31 December 2017 and completed 518 in the year to 31 March 2018.
Two stock rationalisation acquisitions have also completed since the end of the 3rd quarter with 144 properties purchased from PA Housing on 26 March 2018 and 308 from Hyde Housing on 16 April 2018.
Future Development
A further 1330 units are expected to be completed by 2021/22 from current committed projects and uncommitted identified sites which are not yet in contract.
9 months to | 9 months to | |||||||
31/12/2016 | 31/12/2017 | Movement | ||||||
£'000 | £'000 | £'000 | ||||||
Statement of Comprehensive Income | ||||||||
Turnover (excluding property sales) | 74,292 | 85,264 | 10,972 | 14.8% | ||||
Turnover from property sales | 9,890 | 23,563 | 13,673 | 138.3% | ||||
Total turnover | 84,182 | 108,827 | 24,645 | 29.3% | ||||
Cost of sales | (7,350) | (19,358) | (12,008) | 163.4% | ||||
Operating costs | (46,391) | (55,710) | (9,319) | 20.1% | ||||
Operating surplus | 30,441 | 33,759 | 3,318 | 10.9% | ||||
Operating margin | 36.16% | 31.02% | ||||||
Surplus on sale of properties | 643 | 719 | 76 | 11.8% | ||||
not developed for outright sale | ||||||||
Negative goodwill written off | - | 5,225 | 5,225 | 100.0% | ||||
Movement in investment properties | - | - | - | 0.00% | ||||
Interest receivable and other income | 78 | 75 | (3) | -3.8% | ||||
Interest payable and similar charges | (18,925) | (19,224) | (299) | 1.6% | ||||
Actuarial gains/losses in respect | - | - | - | 0.00% | ||||
of pension schemes | ||||||||
Tax payable | (115) | (376) | (261) | 226.6% | ||||
Surplus for the period | 12,122 | 20,178 | 8,056 | 66.5% | ||||
31/03/2017 | 31/12/2017 | ||||
Statement of Financial Position | £'000 | £'000 | |||
Fixed assets | |||||
Housing properties | 912,739 | 1,045,751 | |||
Investment properties | 5,449 | 5,449 | |||
Other fixed assets | 14,366 | 17,628 | |||
932,554 | 1,068,827 | ||||
Current assets | |||||
Stock | 26,214 | 18,817 | |||
Trade and other debtors | 3,562 | 2,283 | |||
Cash and cash equivalents | 10,122 | 16,320 | |||
39,898 | 37,420 | ||||
Creditors: amounts falling due within one year | (22,006) | (26,367) | |||
Net current assets/(liabilities) | 17,892 | 11,052 | |||
Total assets less current liabilities | 950,446 | 1,079,880 | |||
Creditors: amounts falling due after one year | |||||
Loans | (497,766) | (555,259) | |||
SHPS pension agreement plan | (10,610) | (13,430) | |||
Deferred capital grant | (228,011) | (273,692) | |||
(736,387) | (842,381) | ||||
Pension provision | (3,505) | (3,505) | |||
Total net assets | 210,554 | 233,994 | |||
Capital and reserves | |||||
Revenue reserve | 102,487 | 122,665 | |||
Revaluation reserve | 139,502 | 139,502 | |||
Cashflow hedge reserve | (32,435) | (29,173) | |||
Designated reserves | 1,000 | 1,000 | |||
210,554 | 233,994 | ||||
For Further information, please contact:
Rob Griffiths, Chief Financial Officer & Deputy Chief Executive
Kate Wood, Director of Corporate Finance
For media enquiries, please contact:
Jon Reeves, Press and PR Manager
Longhurst Group 0345 30 90 700