Accent Cap 49 Regulatory News (93FO)

Press Release for release: 7am 14th July 2020Accent Group Limited* Announces Financial Results for 2019/20 

* Accent Group Limited is the ultimate holding company for Accent Capital PLC

Accent's core business of providing affordable housing remains strong and has produced a financial result in line with expectations.Accent has had another successful year in an environment of significant change. Turnover has increased to £100.5m and the headline operating margin remains consistent at 23.9% compared to 24.1% in 2018/19.

Consolidated total comprehensive income was £2.4m. Other comprehensive income includes some actuarial adjustments and the pre-tax surplus position is a deficit of £1.8m. This is in line with budget expectations and reflects break costs and fees incurred of £12.8m in the year as part of a financing exercise. Accent issued its first own-name public bond in July 2019 and some of the proceeds were used to repay an existing lender. Stripping out those one-off costs the pre-tax position would have been a surplus of £11m.At the close of the 2019/20 financial year Accent holds a significant amount of liquid funds amounting to £105.1m as well as undrawn, fully secured facilities available on short notice of £50m. There is limited impact from COVID-19 within these results, however as the crisis continues to play out during 2020/21 Accent continues to assess and adapt to meet the challenge. The strong funding position gives Accent the flexibility to deal with those challenges, both known and yet to emerge in a post COVID-19 world, which will likely lead to slower development and capitalised maintenance activity than originally planned during 2020/21.The safety of customers and colleagues was Accent's priority throughout the lockdown period and service delivery was greatly changed in line with the latest government guidance. Daily reviews by an Emergency Planning Committee included the proactive management of risks to business continuity. We continue actively to plan the phased remobilisation of repairs and maintenance work which commenced in May and will continue throughout July and August.

In terms of key ratios for the 2019/20 financial year:

· EBITDA-MRI* was 25.8% compared to 28.9% in 2018/19, reflecting increased investment in existing homes and pro-active asset management decisions including the demolition and re-provision of the Ripleyville scheme in Bradford.

· EBITDA-MRI / Interest expense improved from 1.94x to 2.04x and Debt / EBITDA increased from 12.9x to 16.2x, both of which reflect the successful bond issue.

* Earnings before interest, depreciation and amortisation - major repairs included"Cash flow and liquidity remain under close focus at Accent and the business has significant available facilities at its disposal should they be required. The 2020/21 forecast position is continually under review given prevailing circumstances, however we will continue to invest in developing new housing and improving existing customers' homes and services, in line with Accent's financial plans and development strategy."David Royston, Executive Director of Finance and ICT"Our first public bond in July 2019 raised £350m (with £125m retained) and put us into the best possible financial shape to support delivery of our corporate strategy. The resilience our people have shown throughout the pandemic embodies our values and has helped us remain focussed on customer safety, a new and improved customer offer, digital innovation and ambitious development plans. Despite the unique set of challenges that COVID-19 has brought for our customers and for colleagues, our Vision is stronger than ever."Paul Dolan, Chief Executive Officer 

Please follow this link to view the Annual Report and Financial Statementshttp://www.rns-pdf.londonstockexchange.com/rns/8366S_1-2020-7-13.pdf

EndsIssued by Accent Housing, Shipley, West Yorkshire. For more information, contact Stacey Healey, Brand and Communications Strategist on 01274 065574 or 07436 538458. Email Stacey.healey@accentgroup.orgEditor's NotesAccent Housing was established in 1966. It is a nationally based association providing affordable homes and services to over 35,000 residents living in over 20,500 homes across the country. The association's registered office is in Shipley, West Yorkshire. It has regional offices in Burnley, Camberley, Peterborough and Stockton. Accent was first registered as a provider of social housing for rent, but has since diversified into providing homeownership, leasehold and shared ownership options.