1 Nov 2019 10:59
A2Dominion Housing Group's Half Yearly Performance Update covering the
period to 30 September 2019
A2Dominion Housing Group announces the following update for the period to 30 September 2019.
Financial Performance
The Group's financial performance is ahead of budget expectation for the six month period.
Unaudited Consolidated Statement of Comprehensive Income | ||||
|
|
| 6 Months to | 6 Months to |
|
|
| 30-Sep-19 | 30-Sep-18 |
|
|
| £m | £m |
|
|
|
|
|
Turnover |
| 167.7 | 197.8 | |
Rent |
|
| 114.7 | 111.2 |
Sales |
|
| 40.5 | 73.9 |
Social Housing Grant Amortisation | 8.3 | 8.3 | ||
Other Income |
| 4.2 | 4.4 | |
Operating Surplus |
| 48.4 | 52.2 | |
Operating Margin |
| 28.9% | 26.4% | |
Share of Joint Venture Surplus | 1.0 | 2.4 | ||
Interest |
|
| (29.1) | (23.5) |
Surplus for the Period |
| 20.3 | 31.1 | |
The Group's core rental income stream remains strong and has increased 3.1% year on year with the lower turnover directly attributable to lower sales volume. Operating margin has increased by 2.5% when compared to the same period last year. The increase in interest costs is as a result of a lower level of interest being capitalised against development projects, as a consequence of taking a more conservative approach, capitalising interest at start on site as opposed to at scheme purchase.
Unaudited Consolidated Statement of Financial Position | ||||
|
|
| Sep-19 | Sep-18 |
|
|
| £m | £m |
|
|
|
|
|
Fixed Assets |
| 3,470.5 | 3,243.0 | |
Current Assets |
| 373.6 | 652.1 | |
Creditors |
|
| (2,879.7) | (2,925.4) |
Net Assets |
| 964.4 | 969.7 | |
Revenue Reserves |
| 959.6 | 962.6 | |
Other Reserves |
| 4.8 | 7.1 | |
Net Equity |
| 964.4 | 969.7 | |
The Group fixed asset base has increased as we continue to invest in our existing housing stock and develop new. The current assets have decreased year on year and this is largely as a result of large cash amounts held at the same time last year from newly arranged credit facilities. Reserves show a slight decrease when comparing 2019 to 2018 and this is a result of significant one-off items at the year end which are detailed in the 31 March 2019 statutory accounts.
Operational Performance
Customer: The Group has produced a strong performance over the period with our customer contact centre maintaining a high level of customer satisfaction (83.6%). Arrears levels have continued on from previous years and remained steady for the year to date across all tenures. Overall satisfaction with responsive repairs has remained above our 85% target.
Development: The Group has 149 handovers at the end of September 2019 and is currently forecasting to complete 497 units by the year end, with 1,218 units in the following year. The current pipeline totals 6,799 units forecast to be delivered between 2020 and 2025.
Treasury: As at 30 September, the Group's loan facilities were £2,053.7m, with borrowings of £1,560.0m. In addition to the £493.7m of undrawn facilities, the Group held £21.2m of cash.
The Group also has deferred private placements of £50m from March 2020 and £75m from March 2022. These two committed issues are in addition to the uncommitted facility for a future notes issue of £75m, which was agreed in August 2018 and remains undrawn. These issues are not included within the £2,053.7m stated above.
Over the next two years, committed loan facilities will reduce by £88m through scheduled loan facility amortisation. This has been partly refinanced through the deferred bonds issue of £75m in March 2022. The annual update of the Group's Euro Medium Term Note Programme documentation was completed in September, enabling the Group to maintain the option to issue further unsecured notes over the next 12 months.
As at 30 September 2019, the Group's overall fixed rate ratio was 86.08% (March 2019: 84.2%) and the average borrowing rate is 4.33% (March 2019: 4.35%).
Further Information
An Investor Update presentation is available on our website link: https://www.a2dominiongroup.co.uk/content/doclib/94.pdf
A2dominion 28 (54XE)