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Monday 20 November, 2017

Town and Country

First Half Year Trading Statement

RNS Number : 8182W
Town and Country Housing Group
20 November 2017
 

Town and Country Housing Group: First Half Year Trading Statement

 

20 November 2017

 

Town and Country Housing Group (TCHG) is today issuing its consolidated unaudited trading statement for the group, for the first half of financial year ending 31 March 2018.

 


 6 months to Sept 17

 6 months to Sept 16


 £000

 £000




Operating Surplus

14,987

15,866

Surplus on disposal of assets

1,431

3,243

Net Interest Payable

(6,474)

(7,856)

Taxation & Non Controlling Interest

(133)

(174)

Surplus

9,811

11,079

 

 

Note: No assumption is made about gain on revaluation of investment properties in either year, as revaluation is undertaken at year end.

 

The core rental business continued to perform strongly with the surplus improving slightly, despite the 1% cash terms rent reduction in April 2017. The 2016 operating surplus included £1.1m of surplus from dwellings built for sale (2017: £nil). Our continuing strong cash generation allows us to minimise the new debt necessary for investment in new dwellings.

 

Disposal of assets (including "staircasing", where shared owners buy a further tranche of the property) provided a further £1.4m of surplus. This was lower than in the first half of 2016/17, as in that year we had the benefit of a major disposal of stock in London.

 

Interest costs are reduced, due to action taken to manage them, including a reduction in gross debt of around £83m, and lower prevailing interest rates. In 2016/17, the final interest cost was significantly reduced by an FRS102 amortised cost adjustment to loan carrying values in the second half of the year.

 

Fire Safety

 

Following the tragic fire at Grenfell Tower in west London, TCHG has reviewed the implications for our residents. We have no buildings of more than seven stories in height. We have identified cladding similar to that used at Grenfell Tower, but it is only at third floor level on one three storey building. Instructions have been placed to replace this cladding, and it is expected to be completed in January 2018.

 

Credit Rating

 

S&P Global Ratings has maintained its rating of TCHG at A+ with stable outlook throughout the period.

 

Future Information Releases

 

TCHG will in future provide these half yearly trading updates. The next reporting will be the statutory financial statements which we expect to release in late July / early August 2018.

 

Further Information

 

For further information contact Robin Tebbutt, Director of Finance on 01892 501480


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