A2Dominion Housing Group Ltd Half Yearly Results

TIDM54XE

A2Dominion Housing Group Ltd

01 November 2018

A2Dominion Housing Group's Half Yearly Performance Update covering the period to 30 September 2018

A2Dominion Housing Group announces the following update for the period to 30 September 2018.

Financial Performance

The Group has delivered a strong financial performance compared to budget expectation for the period. The Group is expected to sustain this level of performance through to the end of the financial year.

 
                   Management Accounts Consolidated Statement of Comprehensive 
                                              Income 
                                                            6 Months to               6 Months to 
                                                              30-Sep-18                 30-Sep-17 
                                                                   GBPm                      GBPm 
------------------------------------   --------  ----------------------  ------------------------ 
 
 Turnover                                                         197.8                     133.2 
-------------------------------------  --------  ----------------------  ------------------------ 
  Rent                                                            111.2                     109.2 
  Sales                                                            73.9                      11.6 
  Social Housing Grant Amortisation                                 8.3                       7.9 
  Other Income                                                      4.4                       4.5 
-------------------------------------  --------  ----------------------  ------------------------ 
 Operating Surplus                                                 52.2                      56.3 
 Operating Margin                                                 26.4%                     42.3% 
  Share of Joint Venture Surplus                                    2.4                      16.7 
  Interest                                                       (23.5)                    (26.0) 
-----------------------------------------------  ----------------------  ------------------------ 
 Surplus for the Period                                            31.1                      47.0 
                                                 ----------------------  ------------------------ 
 
                          Management Accounts Consolidated Statement of 
                                        Financial Position 
                                                              30-Sep-18                 31-Mar-18 
                                                                   GBPm                      GBPm 
------------------------------------  ----  ---  ----------------------  ------------------------ 
 
 Fixed Assets                                                   3,243.0                   3,174.6 
 Current Assets                                                   652.1                     568.2 
 Creditors                                                    (2,925.4)                 (2,803.5) 
-----------------------------------------------  ----------------------  ------------------------ 
 Net Assets                                                       969.7                     939.3 
                                            ---  ----------------------  ------------------------ 
 Revenue Reserves                                                 962.6                     932.6 
 Other Reserves                                                     7.1                       6.7 
                                            ---  ----------------------  ------------------------ 
 Net Equity                                                       969.7                     939.3 
                                            ---  ----------------------  ------------------------ 
 
 

Year on year the Group achieved a lower operating margin compared to the same period last year. This is a consequence of two large developments with lower margins, which generated nearly GBP50m of turnover during the 6 months to September 2018. Social housing income operating margin remains strong at 35.7% (2017: 38.7%).

The Statement of Financial Position shows a net asset increase of GBP30.4m which highlights the Group's continued commitment to invest our surpluses and obtain funding to deliver our housing development programme.

Operational Performance

-- Customer: The Group has performed well over the first half of the year showing improved results in our customer contact performance and maintaining a high level of customer satisfaction (81%). Arrears levels have also remained steady for the year to date. Overall satisfaction with responsive repairs services (89%) and planned maintenance services (99%) are above target.

   --     Development: The number of homes built to the end of September 2018 is 338. 

Treasury

As at 30 September, the Group's loan facilities and borrowings are summarised as follows:

 
                                        Arranged       Drawn 
                                            GBPm        GBPm 
 A2Dominion Housing Group Limited          (1.3)       (1.3) 
 A2Dominion Homes Limited                  932.0       635.6 
 A2Dominion South Limited                  797.7       632.4 
 A2Dominion Residential Limited            280.5       280.5 
  A2Dominion Housing Options                26.0        26.0 
 A2Dominon Development Limited          ____47.3     ___47.3 
                                         2,082.2     1,620.5 
                                        ________     _______ 
 

In addition to the GBP461.7m of undrawn facilities, the Group had GBP212.0m of cash invested with a variety of counterparties, in line with our Treasury Policy.

As at 30 September, the Group's overall fixed rate ratio was 84.3% (compared to 91.4% as at the end of March 2018) and the average borrowing rate remains unchanged at 4.38%.

Since April 2018, the Group has entered into two new revolving credit facilities of GBP50m each. The Group has also issued a Floating Rate Note of GBP60m, and has signed a new uncommitted facility for a future notes issue of $100m. Over the next 2 years, GBP170m of existing loan facilities will be lost through scheduled loan facility amortisation and we are planning to replace these lost facilities in the near future. The annual update of our EMTN programme documentation was carried out during September, so that the Group is able make use of this over the next 12 months.

Investor Update

An Investor Update presentation is available on our website link: https://www.a2dominiongroup.co.uk/content/doclib/68.pdf

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November 01, 2018 13:45 ET (17:45 GMT)