A2Dominion Housing Group Ltd Replacement: Half Yearly Performance Update

TIDM54XE

A2Dominion Housing Group Ltd

21 November 2017

The following amendments have been made to the 'Half Yearly Performance Update' announcement released on 16/11/2017 at 09:00 under RNS No 6320W.

The Management Accounts Consolidated Statement of Comprehensive Income (unaudited) section has been corrected.

All other details remain unchanged. The full amended text is shown below.

A2Dominion Housing Group's Half Yearly Performance Update covering the period to 30 September 2017

A2Dominion Housing Group announces the following update for the period to 30 September 2017.

The Group has delivered a strong financial and operational performance for the period. The Group is on track to continue at this level of performance through to the end of the financial year.

Financial Performance

Management Accounts Consolidated Statement of Comprehensive Income (unaudited)

 
                             6 Months 
                                   to   6 Months to 
                            30-Sep-17     30-Sep-16 
                                 GBPm          GBPm 
------------------------   ----------  ------------ 
 Turnover                       149.9         187.2 
 Operating Surplus               73.0          60.4 
 Operating Margin               48.7%         32.3% 
 Interest                       -26.0         -23.1 
 Surplus for the Period          47.0          37.3 
-------------------------  ----------  ------------ 
 

Management Accounts Consolidated Statement of Financial Position (unaudited)

 
                        Sep-17     Sep-16 
                          GBPm       GBPm 
------------------   ---------  --------- 
 
 Fixed Assets          3,101.1    3,060.7 
 Current Assets          573.0      578.1 
 Creditors            -2,788.9   -2,802.5 
 Net Assets              885.2      836.3 
-------------------  ---------  --------- 
 
 Revenue Reserves        882.3      833.8 
 Other Reserves            2.8        2.5 
 Net Equity              885.2      836.3 
-------------------  ---------  --------- 
 

Our first six months' results deliver a strong operating margin compared to the same period last year. A significant contributor to this is the surplus being delivered from our share of joint venture profits. This impacts turnover, as the joint venture sales are netted off with cost of sales and accounted for net in turnover.

Operational Performance

Customer: The Group has performed well over the first half of the year showing continued improvement on our customer contact focussed KPIs. Our customer service centre achieved its best ever customer satisfaction result in September with 88.0% with the year to date figure standing at 83.4%.

Arrears levels across the board have remained steady with the majority of areas showing a slight year to date improvement.

Development: We are currently forecasting to complete 1,014 units by the year end against a target of 900 units with actual handovers at 339 at the end of September 2017. Our current committed pipeline totals 5,277 units being delivered between 2018 and 2023.

Treasury: As at 30 September, the Group's overall borrowings and arranged facilities were virtually unchanged from the year end position. Loan facilities at the half-year can be summarised as follows:

 
                                        Arranged      Drawn 
                                            GBPm       GBPm 
----------------------------------   -----------  --------- 
 
 A2Dominion Housing Group Limited           -1.4       -1.4 
 A2Dominion Homes Limited                  897.4      677.9 
 A2Dominion South Limited                    784      648.3 
 A2Dominion Residential Limited            217.3      217.3 
 
 Total Loans                             1,897.3    1,542.1 
-----------------------------------  -----------  --------- 
 

In addition to the GBP355.2m of undrawn facilities, the Group had GBP165m 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 91% (compared to 93% as at the end of March 2017) and the average borrowing rate remains unchanged at 4.7%.

There have been no changes to the Group's borrowing structure during the year to date and no new funding was raised or refinancing carried out. Over the next 2 years, GBP150m of existing loans will be lost through scheduled capital repayments 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 October, so that the Group is able make use of this over the next 12 months.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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November 21, 2017 05:10 ET (10:10 GMT)