A2Dominion Housing Group Ltd Publication of Annual Financial Report 2019 (3627H)

TIDM54XE

RNS Number : 3627H

A2Dominion Housing Group Ltd

31 July 2019

Publication of Annual Financial Statements 2019

A2Dominion Housing Group Ltd has today published its Annual Report & Accounts 2018/19, recording a turnover of GBP372.2m and a net surplus of GBP23.9m.

The 38,000-home Group had a higher net surplus of GBP92.5m in 2017/18 due to GBP40m of surplus from the completion of a joint venture development scheme in that year. The lower surplus also reflects the Group's significant new investment of GBP13.5m into fire safety, in addition to its homes maintenance programme of GBP32.9m (2018: GBP24.1m).

The full audited financial statements can be found in the following location:

https://www.a2dominiongroup.co.uk/about/reports-and-accounts

As one of the UK's top developing housing associations, A2Dominion built 875 much-needed high-quality new homes across London and southern England in the last year. Its completions included 113 for affordable rent, 88 shared ownership, 24 social rent, 354 private sale and 296 private rent.

The Group also continued to focus on improving and investing in its customer services, achieving a 90% satisfaction rating with its responsive repairs service (a 12% increase over the past three years) and invested GBP1.6m into community programmes and initiatives.

The organisation remains financially strong with an above peer average social housing margin of 37.2% and a newly-retained Fitch credit rating of A+, one of the highest in the sector.

Darrell Mercer, A2Dominion Group's Chief Executive, said: "Whilst our operating environment remains challenging due to the on-going economic and political uncertainty, the Group remains in a very strong position.

"We have started to build more new homes than ever before, with 1,800 homes started in the last year alone. We are also continuing to focus on serving the needs of our customers, achieving high satisfaction across many key areas."

Other achievements in 2018/19 included:

-- Forming a strategic partnership with the Greater London Authority to secure GBP85 million in funding, as part of the 2016-21 London Affordable Homes Programme

-- Raising a total of GBP465m of new finance to enable the Group to continue its growth and take on new development opportunities. This includes:

o GBP250m of revolving credit loan facilities with leading financial groups, HSBC, MUFG Bank, BNP Paribas and National Australia Bank;

o GBP215m - a forward starting bond issue; a forward starting private placement; a floating rate note; and participation in the MORhomes club issue.

-- Securing 650 plots of strategic land, with a total of 3,000 plots to ensure future supply and developing the Group's first-ever mixed tenure extra care scheme, Beechwood Grove in Reading

-- Launching the first phase of the Group's GBP23m business transformation programme, Fit for the Future, to become more responsive to customers' needs and expectations, whilst making the organisation more efficient and sustainable

-- Investing GBP1.6m into community programmes with over 3,500 customers benefitting from support services including financial and digital inclusion, health and wellbeing and employment and enterprise

-- Winning and retaining care and support contracts with a value of GBP1.3m to provide support and accommodation to vulnerable people, including those who are homeless, young parents and older residents

   --      Recording best-ever income collection results. 
 
 Summary Financial Performance 
 
 GROUP STATEMENT OF COMPREHENSIVE           2019      2018 
  INCOME AND EXPENDITURE                    GBPM      GBPM 
 Turnover                                  372.2     300.7 
 Cost of sales                           (128.4)    (55.7) 
 Operating costs                         (190.2)   (158.2) 
 Surplus on sale of fixed assets             9.7      13.4 
 Operating surplus                          63.3     100.2 
 Operating margin                          17.0%     33.3% 
 Share of jointly controlled 
  entity operating surplus                   2.5      41.2 
 Net interest charges                     (52.5)    (53.7) 
 Change in fair value of investments         0.3         - 
 Movement in fair value of financial 
  instruments                                2.7      13.2 
 Movement in fair value of investment 
  properties                                 9.2       1.6 
 Taxation                                  (0.3)       1.1 
 Non-controlling interest                  (1.3)     (1.1) 
 Net surplus for the year                   23.9      92.5 
 
 
 GROUP STATEMENT OF FINANCIAL                  2019        2018 
  POSITION                                     GBPM        GBPM 
 
 Tangible fixed assets and investments      3,408.8     3,174.6 
 Current assets                               509.4       568.2 
 Creditors including loans and 
  borrowings                              (1,883.4)   (1,795.5) 
 Deferred capital grant                    (1089.4)   (1,008.0) 
 Non-controlling interest                     (1.4)       (1.2) 
 Total reserves                               944.0       938.1 
 

A copy of the Annual Financial Statements has also been submitted to the National Storage Mechanism and will shortly be available for inspection:

http://www.morningstar.co.uk/uk/NSM

For further information, please contact:

Ellie Lodge

A2Dominion Housing Group

The Point

37 North Wharf Road

London W2 1BD

Tel: [phone]

Email: [e-mail]

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July 31, 2019 06:00 ET (10:00 GMT)