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AmicusHorizon Fin (20SY)

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Friday 11 November, 2016

AmicusHorizon Fin

AmicusHorizon Half-yearly Trading Statement

RNS Number : 9718O
AmicusHorizon Finance PLC
11 November 2016
 

AMICUSHORIZON TRADING UPDATE

11th November 2016

AmicusHorizon's unaudited trading update for the six months ended 30 September 2016 ("H1 2016/17").Highlights

Comparators in this trading update are for the same period in the prior financial year ("H1 2015/16"). H1 2016/17 results include a one off fair value gain of £8.3m from transfer of engagements of Southwark & London Diocesan HA ("SLDHA").

·     Operating surplus £41m (H1 2015/16 £31m) - £33m before one off gain from SLDHA transfer

·     Surplus before tax £34m (H1 2015/16 £18m) - £26m before one off gain from SLDHA transfer

·     Operating margin 45% (H1 2015/16 34%) - 39% before one of gain from SLDHA transfer

·     Net interest costs £15m (H1 2015/16 £16m).

Operations

We launched our Strategic Plan 2016-20, 'Unlocking Potential', in April 2016. We will unlock the potential of our residents, people and business. This means increased capacity to build more homes, preserving resident loyalty and improving efficiency. The strategy document can be found on our website at http://www.amicushorizon.org.uk/Corporate/Strategies-and-Policies.aspx.

We've set new operational targets to reflect the new strategy. At the end of September 2016:

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

·     27% (target 25%) of residents using our services online, helping them and improving our efficiency

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

·     7.99 (target 8) out of staff 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.

Partnership with Viridian Housing

In August we announced the Designate Executive Team and Shadow Board who will lead the business following the partnership with Viridian Housing. The process of appointing a Chair for the new business is underway.

We will bring AmicusHorizon and Viridian Housing together through amalgamation. This will create a single business and enable us to make best use of our combined strength and help us to reduce operating costs.

We are in discussions with lenders and others to secure the necessary consents to achieve this. We expect to achieve amalgamation in Spring 2017, with a group structure interim stage in place early in the new year. We expect to apply "Merger Accounting", with the amalgamated business' financial statements effectively a sum of its constituent parts.

Overall, the partnership will target at least £10m annualised efficiency measures over and above our pre-existing efficiency plans to deliver £13m by 2021. Our projections shows us starting 1,400 new homes each year from 2020. 

 

 

Partnership with SLDHA

During August we successful completed the Transfer of Engagements of Southwark and London Diocesan Housing Association ("SLDHA") into AmicusHorizon. SLDHA's 277 rented homes are now owned and managed by AmicusHorizon. On transfer we repaid SLDHA's £10m loans.  

Investment and Sales

We are now in contract to deliver 566 homes across 21 sites, with remaining capital commitments on these sites of £81m. We completed 43 new homes during H1 2016/17.

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 30th September 2016 we had 13 (31st March 2016 : 36) Shared Ownership 1st tranche properties unsold, and 6 open market sale unsold units (31st March 2016: 0), of which 9 shared ownership and 3 open market sale were reserved.

Liquidity

At the end of the half year we had undrawn facilities of £55m and £89m cash and deposits available. Our outstanding debt balance was £667m.

Unaudited Financial Results

Unaudited financial results for H1 2016/17 are below, together with comparatives for H1 2015/16 and the 2015/16 full financial year.

Statement of Consolidated Income

 

H1 2016/17 (£m)

H1 2015/16 (£m)

2015/16
(£m)

Turnover

92

89

171

Cost of Sales

(1)

(4)

(9)

Operating Expenditure

(50)

(54)

(113)

Operating Surplus

 

41

31

49

Gain on disposal of property

8

3

20

Interest receivable

0

0

0

Interest and financing costs

(15)

(16)

(33)

Increase in investment property valuations

0

0

3

Surplus before taxation

34

18

39


Note: These figures exclude movements in the fair value of investment properties, movement in the fair value of financial instruments, pensions adjustments, and the unwinding of impairments previously taken. These items will be reviewed as part of year end accounting processes. A one-off fair value gain of £8.3m arising on the transfer of engagements of Southwark & London Diocesan HA is included within H1 2016/17 turnover.

We expect maintenance spend increases over the second half of the year, and currently expect our operating margin for the full year to meet our budget of 30% before the £8.3m one off fair value gain.  

 

Next Updates

We will keep investors informed of progress towards completing the partnership with Viridian Housing. We will publish a full year financial update after 31st March 2017.

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
 
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