Quarterly performance update

Clarion Funding plc

27 October 2023

 

Clarion Funding plc

CLARION HOUSING GROUP Q2 2023/24 PERFORMANCE UPDATE

Clarion Housing Group's Quarterly Performance Update covering the period to 30 September 2023

Financial performance

The unaudited management accounts for first half of the financial year 2023/24 show a turnover of £485.8 million (22/23 £480.5 million), and an operating surplus of £106.9 million (22/23 £150.3 million). Of the £43 million reduction in operating surplus, £35 ​million of this is attributable to a lower surplus on disposals.  This reflects a more cautious approach to disposals in the current economic climate and the large stock disposal that occurred in the first six months of the prior year. The other elements include a lower surplus on development sales and higher operating costs, although it is noted that the majority of the operating cost increases are substantially offset by higher rental income following the 7% rent increase.      

The Group has continued to invest significantly in its existing homes, with £66.1 million invested in improvements by the end of September 2023 - an increase from £53 million the prior year. £246.9 million was also invested in our new homes programme - lower than previous years due to the continued cautious approach adopted in light of challenging market conditions.  

Housing fixed assets stood at £8.48 billion, up from £8.31bn as at 31 March 2023. Drawn debt was £4.60 billion, up from £4.46 billion as at 31 March 2023. Liquidity stood at £0.86 billion (31 March 2023: £1.02 billion) with committed and fully secured loan facilities at £5.39 billion (31 March 2023: £5.41 billion). 

Operational performance

We have exceeded our internal customer satisfaction targets, with scores last measured at 82.7% for overall customer satisfaction (target: 80%) and 89.5% for satisfaction with last repair (target: 85%).

Rent arrears has improved to 8.1%, from 8.4% at the end of the first quarter of the financial year. While continuing to improve, the higher-than-typical level reflects the continued legacy impact of the cyber security incident last year, where a proportion of our direct debits could not be collected. Our teams continue to deliver targeted and bespoke support to help residents maximise their income and manage their finances.

The Group has completed 606 new homes over the first half of the financial year. Most of these homes - 71% - were for affordable tenures. The current pipeline remains in excess of 20,000 homes.

Outright market and shared ownership sales generated income of £67.2 million, with a margin of 8.2%.

Sustainability

In July, the Group announced a pilot project which will see four vacant and timeworn bungalows in East Hertfordshire redeveloped and replaced with seven highly efficient affordable homes, which will be built in line with the upcoming 2025 Future Homes Standard (FHS).

Supporting our residents and communities

Over the first six months of the year, the Group's charitable foundation, Clarion Futures, supported 1,002 people into work and 3,049 into training, as well as helped 47 people to set up their own business, through its free jobs and training service.

Demand on Clarion Futures' money service remains high, and 11,545 residents have benefitted from money guidance from Clarion Futures and its external partners since April 2023.

A total of £481,637 has been awarded in grant funding to community-based organisations, including food banks and local charities tackling issues such as loneliness and isolation.

ENDS

For more information, please contact:

Andrew Hill, Director of Treasury and Corporate Finance, Clarion Housing Group - 0203 840 0164 / [e-mail] 

Lucy Pond, Senior Communications Manager, Clarion Housing Group - 0207 378 5555 / [e-mail] 

Disclaimer

The information contained herein (the "Trading Update") has been prepared by Clarion Housing Group Limited (the "Parent") and its subsidiaries (the "Group"), including Clarion Funding plc, Affinity Sutton Capital Markets plc, Circle Anglia Social Housing Plc and Circle Anglia Social Housing 2 Plc (the "Issuers") 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 Issuers 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.

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 an 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.

www.clarionhg.com 

 

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