15 Dec 2020 10:32
Places for People Group Limited Trading Update for the Period Ending 30 September 2020
Places for People Group Limited (the "Group") is pleased to issue its unaudited trading update for the six-month period ending 30 September 2020. Comparatives are shown for the prior year equivalent period being the six months ended 30 September 2019 ("2019"), as well as the year ended 31 March 2020.
These interim results reflect the continued strong performance of the Group's affordable housing businesses combined with the reduction in development for sale activity towards the increased delivery of affordable housing.
This performance has put the Group is a strong position to deal with the challenges posed by Covid-19. The Group's current tenant arrears have increased to 3.87% (2019: 3.13%) and, following a sharp increase at the beginning of the pandemic, they have now stabilised. The closure of the Group's leisure facilities between April and August resulted in a reduction in turnover; however, due to the low margins in this business, this has had a limited impact on the Group's profits.
The Group's turnover for the period was £376.6m (2019: £437.2m) which generated a profit before tax of £35.9m (2019: £42.2m). The reduction in turnover relates to a reduction in development for sale activity combined with reduced leisure activities. This change in activity led to the Group's operating margin for the period increasing by 2.9% to 27.9% (2019: 25.0%).
The Group has continued to refocus its development activity towards affordable housing, delivering 590 properties in the period, of which 59% are affordable housing tenures. This focus on affordable development has resulted in the Group's fixed assets growing by £0.3bn to £4.9bn (2019: £4.6bn) and the Group's land and development stock continues to reduce.
Despite the continuing challenging environment, the Group continues to deliver on its strategy, growing its impact and continuing to create places that work for everyone.
http://www.rns-pdf.londonstockexchange.com/rns/7074I_1-2020-12-15.pdf
Copies of the above document have also been submitted to the National Storage Mechanism and will shortly be available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism
For further information, please contact:
Places for People Group LimitedTax and Treasury Director80 Cheapside, London EC2V 6EE
Telephone: +44 (0)1772 897 200
Fax: +44 (0)1772 897 578
Email: matt.cooper@placesforpeople.co.uk