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Optivo Finance PLC (20SY)


Tuesday 21 July, 2020

Optivo Finance PLC

Annual Financial Report

RNS Number : 6249T
Optivo Finance PLC
21 July 2020





Publication of Optivo's Financial Statements for the year ended 31st March 2020

Financial Statements are now available online:  

Results are in line with our Preliminary Unaudited Accounts released 26th May.

· Turnover £322m, (2018/19: £314m)

· Operating Surplus £90m (2018/19: £103m)

· Surplus before fair value movements: £46m (2018/19: £61m)  

· 92% (2018/19: 94%) of turnover from social housing activities.

The £8m increase in turnover was generated principally from rental income from new homes completed and first tranche sales turnover increasing by £2m (we had no open market sales in 2019/20).

Operating costs (excluding sales) increased by £20m (10%) to £224m. Additional fire safety spend and higher routine maintenance costs resulted in a £9 million (13%) increase maintenance costs. Service charge costs increased by £5 million (22%) and exceeded income of £26m, mainly due to additional fire safety spend and fees yet to be recovered. We've also increased the provision for rent bad debts by £1.5m, in anticipation of difficulties for our residents in the short term until new Universal Credit claims are approved to support them.  Determining that Covid-19 was an impairment trigger we carried out an impairment review on properties held for sale at the year end.  We made a small impairment provision of £0.7m based on an estimated 10% reduction in sales values.  Social housing cost per unit increased by £226 / home to £4,425.

During 2019/20 we exited the Growth Plan pension scheme and transferred our Social Housing Pension Scheme (SHPS) defined benefit and defined contribution members out of SHPS in to our own Optivo scheme managed by The Pensions Trust.


Optivo invested £183m in new homes and £20m on improvements and component replacements in existing homes.  We completed 838 new homes (all social housing tenures), and had a further 3,064 new homes under construction.


Interest cover (EBITDA-MRI) was 150% and gearing 46% on an historical cost basis.

Optivo will hold a results call for investors at 1130 on Friday 31st July. Please register interest with us at [email protected] .


Tariq Kazi, Head of Treasury, on 020 803 62293 or  [email protected] .

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