Flagship Fin 61 Regulatory News (87ZW)

RNS

1 September 2022

Flagship trading update and audited financial statements for the year ended 31 March 2022

Flagship Housing Group Limited ('Flagship') the parent company of Flagship Finance Plc and a Registered Provider of Social Housing that owns and manages 32,192 homes in the East of England, announces its trading highlights and summary of audited financial results for the 2021/22 financial year.

Flagship headline results and highlights:

· Owns and manages 32,192 homes (31,782 as of 31 March 2021)

· G1 / V1 rating from the Regulator of Social Housing - last IDA completed 28 October 2020

· Maintained credit rating of A2 (Stable) from Moody's

· Financial performance remains robust with annual turnover increasing by 15.9% to £231.9m (2021: £200.2m)

· Annual operating surpluses increased by 19.9% to £83.3m (2021: £69.5m)

· Delivered an operating margin, including gains on disposal, of 35.9% (2021: 34.7%).

Full year results demonstrate strong financial performance and commitment to sustainability

Our people, business operations and operating performance has been impacted by the on-going repercussions of the global pandemic, and latterly by the geo-political instability. We have navigated the uncertainties and risks with a determined focus on keeping our staff, customers and tenants safe.

Alongside the financial statements, we have also published our 'Use of Proceeds Report' detailing how the funds raised under our Sustainable Finance Framework have been used.

Both documents are available on our website: www.flagship-group.co.uk/about-us/investors-hub/

David Armstrong, Chief Financial Officer at Flagship, said: Despite the challenges faced over the last 12 months, I have been overwhelmed by the resilience of our operating model and the commitment of our people, our executive team and our Board of Directors, which is undoubtedly reflected in our financial performance. We have started talks with bpha and Futures Housing Group to explore how we could partner to combine our expertise and capability to enhance the provision of housing and help make a difference for more people in need.

Development Review

Building new homes and improving our existing homes is an integral part of achieving our business plan and delivering our social purpose.

During 2021/22 we built 655 new homes across Norfolk, Suffolk, Cambridgeshire and Essex. 447 were for affordable rent, 110 shared ownership, 7 shared equity and 91 open market sale.

95% of the new homes we delivered during the year were built to an EPC B (SAP 81-91) standard. The homes that we are building on our own land are being designed and built to SAP rating of 86+ (EPC B) and are sufficient to meet the 2050 net zero carbon emission targets. Future-proofing these properties today, and building renewable technology into their fabric, means that we do not have to retrofit them in the future, reducing the overall cost of investment required in each property.

Carbon zero

We have increased our property investment spend in our long-term business plan. We are finalising our carbon net zero strategy, progressing with our estate regeneration plans and have reviewed our baseline energy performance standard for our new build homes. Our primary aim being to increase the efficiency of new build homes today to reduce the requirement for expensive retrofit in the future.

ESG

Our Environmental, Social and Governance (ESG) report gives us the opportunity to showcase the positive impact of our work. We have an ambitious programme to deliver new affordable homes over the next five years and we want to build them to high environmental standards. We know that a decent safe home has a positive impact on our tenants' quality of life. We're committed to tackling the environmental agenda and have plans to retrofit c.2,000 of our existing homes every year through a fabric-first programme - focusing on thermal improvements, digital heating controls and installing renewable heating technology.

Enquiries

All enquiries in relation to this trading update should be directed to:

Jonathan McManus, Group Director (Finance)

Tel: 0845 258 6219

email: treasury@flagship-group.co.uk

Disclaimer

The information in this announcement of results has been prepared by Flagship Housing Group Limited and is for information purposes only. The announcement should not be construed as an offer or solicitation to buy or sell any securities issued by Flagship Finance Plc or any other member of the Group, or any interest in such securities, and nothing herein should be construed as a recommendation or advice to invest in any such securities.

This announcement contains certain forward-looking statements reflecting, among other things, our current views on markets, activities and prospects. By their nature, forward looking statements involve a number of risks, uncertainties or assumptions that could cause actual results to differ materially from those expressed or implied by those statements. Actual and audited outcomes may differ materially. Such statements are a correct reflection of our views only on the publication date and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. Financial results quoted are audited. We do not undertake to update or revise such public statements as our expectations change in response to events. Accordingly, undue reliance should not be placed on forward looking statements.

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Issuing entity: Flagship Finance plc