Last checked at 6 Nov 2019 15:28
LiveWest Trading Update for the 6 months ended 30 September 2019
LiveWest issues its unaudited group trading update for the 6 months ended 30 September 2019, with comparatives to the unaudited position for the 6 months ended 30 September 2018 and the audited financial statements for the 12 months ended 31 March 2019.
Financial and Operating Performance
Surplus for the 6 months to September 2019 is £25m (6 months ended September 2018: £27m). Surplus on Disposal of Properties for the year to March 2019 includes £6m relating to homes outside our core operating area. Housing Properties (net of depreciation) have increased to £2,024m from £1,950m at March 2019. As a result, net debt has increased to £824m from £788m.
Statement of Comprehensive Income |
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| 6 months | 6 months | 12 months |
| Sep-19 | Sep-18 | Mar-19 |
| £m | £m | £m |
Turnover | 118 | 117 | 233 |
Operating Costs | (84) | (84) | (167) |
Change in the value of investment properties | - | - | 1 |
Surplus on Disposal of Properties | 4 | 6 | 14 |
Operating Surplus | 38 | 39 | 81 |
Net Interest Payable | (13) | (12) | (24) |
Movement in Fair Value of Financial Instruments | - | - | (1) |
Surplus for the period | 25 | 27 | 56 |
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Financial Indicators |
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| Sep-19 | Sep-18 | Mar-19 |
Operating Margin on Social Housing Lettings | 33% | 34% | 33% |
Gross Profit Margin on Shared Ownership Sales | 23% | 30% | 28% |
Gross Profit Margin on Open Market Sales | 17% | 19% | 23% |
Sales of open market and shared ownership homes totalled 231 units for the 6 months ended 30 September 2019 (6 months ended September 2018: 212). As at 30 September 2019, we had 60 shared ownership stock units (March 2019: 125) and 22 open market stock units (March 2019: 2).
Sales margins reflect the scheme mix in the period. House price growth, although positive, is lower than in previous periods.
Customer satisfaction was 89.5% (31 March 2019: 90.5%). Void losses for our general needs and sheltered stock were 0.59% (March 2019: 0.50%). Rent arrears were 1.96% (March 2019: 1.83%).
Liquidity
LiveWest had liquidity at 30 September 2019 of £260m, consisting of available undrawn facilities of £254m, and available cash of £6m. LiveWest Treasury plc raised £200m from its EMTN programme on 3 October 2019.
Development
We completed 450 affordable units in the 6 months ended 30 September 2019 (6 months ended September 2018: 343). We have a contracted pipeline of 2,304 homes (March 2019: 1,835).
Board and Executive Team Changes
LiveWest Homes Ltd: there were no changes to the membership of the board. Following a planned consolidation, the Executive Team is now as follows: Paul Crawford, Melvyn Garrett, Russell Baldwinson, Suzanne Brown, Jill Farrar and Ian Fisher.
LiveWest Capital plc: Andrew Hart and Andrew Sloman were appointed to the board, with Linda Nash, Paul Crawford and Tony MacGregor resigning from the board.
LiveWest Rating
LiveWest Homes Ltd is rated A2 (stable) by Moody's (June 2019), and G1/V1 by the Regulator of Social Housing (July 2019).
END
For more information, please contact:
Andrew Hart, Director of Corporate Finance 01392 814444
https://www.livewest.co.uk/about-us/investor-relations/
Disclaimer
The information contained herein (the "Trading Update") has been prepared by LiveWest Homes Limited (the "Parent") and its subsidiaries (the "Group"), including LiveWest Treasury plc and LiveWest Capital plc (each an "Issuer") and is for information purposes only.
The Trading Update should not be construed as an offer or solicitation to buy or sell any securities issued by the Parent, the Issuer or any other member of the Group, or any interest in any such securities, and nothing herein should be construed as a recommendation or advice to invest in any such securities.
Statements in the Trading Update, including those regarding possible or assumed future or other performance of the Group as a whole or any member of it, industry growth or other trend projections may constitute forward-looking statements and as such involve risks and uncertainties that may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements. Accordingly, no assurance is given that such forward-looking statements will prove to have been correct. They speak only as at the date of the Trading Update and neither the Parent nor any other member of the Group undertakes any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments, occurrence of unanticipated events or otherwise. The information contained in the Trading Update is unaudited.
None of the Parent, any member of the Group or anyone else is under any obligation to update or keep current the information contained in the Trading Update. The information in the Trading Update is subject to verification, does not purport to be comprehensive, is provided as at the date of the Trading Update and is subject to change without notice.
No reliance should be placed on the information or any projections, targets, estimates or forecasts and nothing in the Trading Update is or should be relied on as a promise or representation as to the future. No statement in the Trading Update is intended to be a profit estimate or forecast. No representation or warranty, express or implied, is given by or on behalf of the Parent, any other member of the Group or any of their respective directors, officers, employees, advisers, agents or any other persons as to the accuracy or validity of the information or opinions contained in the Trading Update (and whether any information has been omitted from the Trading Update). The Trading Update does not constitute legal, tax, accounting or investment advice.