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A2Dominion Housing (54XE)

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Friday 01 November, 2019

A2Dominion Housing

A2Dominion's Half Yearly Performance Sept 2019

RNS Number : 9858R
A2Dominion Housing Group Ltd
01 November 2019
 

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  


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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