Information  X 
Enter a valid email address

AmicusHorizon Fin (20SY)

  Print   

Friday 28 April, 2017

AmicusHorizon Fin

AmicusHorizon Full Year Trading Statement 2016/17

RNS Number : 6940D
AmicusHorizon Finance PLC
28 April 2017
 

AMICUSHORIZON TRADING UPDATE

28 April 2017

AmicusHorizon's unaudited trading update for the year ended 31 March 2017 ("2016/17").

Highlights

Comparators in this trading update are for the previous financial year ("2015/16"). 2016/17 results include one off fair value gains of £8.3m from transfer of engagements of Southwark & London Diocesan HA ("SLDHA") and £11.8m from the St. Martins Estate stock transfer.

·     Operating surplus £78m (2015/16 £68m) - £98m after one off gains from SLDHA and St. Martins

·     Surplus before tax £49m (2015/16 £39m) - £69m after one off gains from SLDHA and St. Martins

·     Operating margin 33% (2015/16 29%) - 40% after one off gains from SLDHA and St. Martins

·     Net interest costs £30m (2015/16 £32m).

Operations

At the end of March 2017 our strategic KPI performance was as follows:

·     9 out of 10 residents (target: 8) find it easy to get the help they need

·     37% of residents (target: 35%) using our services online, helping them and improving our efficiency

·     9 out of 10 staff (target: 9) say AmicusHorizon makes a positive difference

·     8 out of 10 staff (target: 8) say they have the tools to deliver a great service.

We are achieving a Net Promoter Score of 72 - the highest of any large (over 10,000 homes) social landlord in the UK.

For our core business of General Needs, Supported Housing and Housing for Older People:

·     At the end of March 2017

0.17% of our homes were vacant and ready for re-letting

Total rent arrears were £4.28m, or 3.28% of annual rent debit

Rent arrears of 5 to 8 weeks were £0.7m (814 residents)

Rent arrears of 9 to 26 weeks were £1.1m (629 residents)

Rent arrears of 27 weeks or more were £0.2m (48 residents)

Customer satisfaction was 99%

·     During 2016/17 the average time to re-let vacant property, excluding voids for major works, was 15 days.

Partnership with Viridian Housing

AmicusHorizon is making steady progress towards amalgamation with Viridian Housing. Amalgamation is expected during Q1 of our financial year 2017/18.

During March, Moody's Investors Services placed AmicusHorizon's A2 long-term issuer rating under review for upgrade, in anticipation of the planned merger.

St Martins Estate

The St Martins estate is a large residential estate with ownership split between AmicusHorizon and two other Housing Associations. Until recently the whole estate has been managed by Metropolitan Housing Trust. AmicusHorizon has now taken direct management of the 473 homes it owns. For accounting purposes this transaction will be treated as a stock swap. The £11.8m gain reported is the increase from historic cost to the fair value of the assets.

Investment and Sales

We are now in contract to deliver 703 homes across 26 sites, with remaining capital commitments on these sites of £97m. We completed 188 new homes during 2016/17 (2015/16: 88).

We expect new completions to rise from 2017/18 reflecting (a) the current grant funding cycle and (b) our ambition to significantly boost development expenditure to take advantage of the additional capacity which will come from the Viridian partnership.

At 31 March 2017 we had 53 (30 September 2016: 13) unsold Shared Ownership 1st tranche properties, and 4 open market sale unsold units (30 September 2016: 6), of which 49 shared ownership and 1 open market sale were reserved.

Liquidity

At the end of the half year we had undrawn facilities of £55m and £84m cash and deposits available. Our outstanding debt balance was £666m.

Unaudited Financial Results

Unaudited financial results for the year 2016/17 are below, together with comparatives for 2015/16 and 2014/15.

Statement of Consolidated Income

 

2016/17

(£m)

2015/16

(£m)

2014/15
(£m)

Turnover

188

170

166

Cost of Sales

(6)

(9)

(3)

Operating Expenditure

(105)

(113)

(119)

Surplus on disposal of fixed assets

21

20

19

Operating Surplus

 

98

68

63

Surplus on commercial property disposals

2

-


Interest receivable

1

1

1

Interest and financing costs

(31)

(33)

(32)

Increase in investment property valuations

(1)

3

1

Surplus before taxation

69

39

33


Note: The draft figures for 2016/17 include movements in the fair value of investment properties, movement in the fair value of financial instruments, and the unwinding of impairments previously taken, but exclude pensions adjustments while we await receipt of FRS 102 pension reports. These will be included in the published financial statements. One-off fair value gains of £8.3m arising on the transfer of engagements of SLDHA and £11.8m from the St. Martins stock transfer are included within 2016/17 turnover and operating surplus.

Our operating margin of 33% for the full year before the one off fair value gains of £20m and surplus on disposal of fixed assets exceeds our budget of 30%.   

Next Updates

An investor briefing will be held ahead of amalgamation with Viridian.

Audited financial statements will be released in July.

A full re-valuation of property security in charge to the AmicusHorizon bond will be published in June 2017 (website address below).

Contact

Tom Paul, Director of Treasury & Risk on 0208 726 8763 or [email protected].  

Further information is available on our website www.amicushorizon.org.uk/Corporate/Investors.aspx .

Disclaimer

This update contains certain "forward-looking" statements reflecting, among other things, our current views on markets, activities and prospects.  Actual outcomes may differ materially.  Such statements are a correct reflection of our views only on the publication date and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared.  Financial results quoted are unaudited.  No reliance should be placed on the information contained within this update. We do not undertake to update or revise such public statements as our expectations change in response to events. This update is neither recommendation nor advice. This is not an offer or solicitation to buy or sell any securities.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
NRAGCGDSXSDBGRI

a d v e r t i s e m e n t