Clarion Funding plc Quarterly Performance Update (7583J)

TIDM96XN TIDM51GC

RNS Number : 7583J

Clarion Funding plc

28 April 2022

Clarion Funding plc

CLARION HOUSING GROUP Q4 2021/22 PERFORMANCE UPDATE

Clarion Housing Group's Quarterly Performance Update covering the period to 31 March 2022

Clarion Housing Group announces the following update ahead of its Annual Report for the year ended 31 March 2022.

Note: Figures quoted in the update are based on unaudited management accounts, which are subject to review and further adjustments, for example in the areas of pensions, investment property and financial instrument valuation and taxation. Comparative data is from the audited financial statements for the year ended 31 March 2021 ("2020/21").

Financial performance

The Group is pleased to report a strong financial performance for the financial year 2021/22. The unaudited management accounts for the 12 months to 31 March 2022 show a turnover of GBP1,059 million (2020/21: GBP944 million), delivering an operating surplus of GBP301 million (2020/21: GBP258 million) and a full year pre-tax net surplus of GBP167 million (2020/21: GBP122 million).

The Group has invested significantly in its new homes programme, with GBP135 million invested in existing stock (2020/21: GBP95 million) and GBP619 million invested in new homes (2020/21: GBP607 million). Fire safety remains a key priority and a total of GBP40.1 million was spent on our fire safety programme (2020/21: 26.7 million).

Housing Fixed Assets stood at GBP 8.17 billion, up from GBP7.78 billion as at 31 March 2021. Drawn debt was GBP4.45 billion, up from GBP4.32 billion as at 31 March 2021. Liquidity stood at GBP1.12 billion (31 March 2021: GBP1.07 billion) with committed and fully secured loan facilities at GBP5.44 billion (31 March 2021: GBP5.27billion).

Operational performance

The Group continues to be focussed on its customer service and has maintained its overall customer satisfaction target of 80% throughout the year - last measured at 80.1%. Repairs satisfaction was also consistently above the 85% target and was last measured at 90.5%.

Arrears improved in the quarter, reducing to 5.65% from 5.97%. Our tenancy sustainment teams and our charitable foundation, Clarion Futures, also continue to provide a range of support and advice for residents facing financial difficulties.

Though the operating environment was challenging, over the year, the Group has been able to deliver a record number of new homes - 2,276 homes were completed (2020/21: 2,126), and 86% of these were for affordable tenures. The current development pipeline stands at 21,742 homes.

Outright market and shared ownership sales performed well, generating a sales income of GBP307.4 million (2020/21: GBP213.3 million), with an increased margin of 13% (2020/21: 9%) prior to any final adjustments .

Sustainability

Thanks to a successful joint bid with Fenland District Council, Clarion has been awarded GBP5.2 million as part of the Government's Social Housing Decarbonisation Fund (SHDF).

Clarion will now partner Fenland, Merton and Tonbridge and Malling councils to 'retrofit' and reduce the carbon emissions of hundreds of its least energy efficient homes across the three regions - in turn saving residents hundreds of pounds a year on energy bills.

Supporting our residents and communities

Over the year, the Group's charitable foundation, Clarion Futures, has invested a total of GBP13.8 million, including GBP4.06 million in external funding, in our residents and communities. A total of 3,717 people have been supported into work by our jobs and training service - including 160 apprenticeships - and 114 people were helped to set up their own business. Crucially, over 70% of the people we supported into work sustained their employment beyond six months. High demand for support from our Clarion Futures Money service has continued and 20,248 money guidance and financial inclusion interventions were made during the last 12 months.

During the year, we have awarded a total of GBP611,031 in grant funding to organisations including food banks, community groups and local charities tackling issues such as loneliness and isolation .

ENDS

For more information, please contact:

Andrew Hill, Head of Treasury, Clarion Housing Group - 0208 315 3239/ [e-mail]

Lucy Pond, Senior Communications Manager, Clarion Housing Group - 0207 378 5555 / [e-mail]

Disclaimer

The information contained herein (the "Trading Update") has been prepared by Clarion Housing Group Limited (the "Parent") and its subsidiaries (the "Group"), including Clarion Funding plc, Affinity Sutton Capital Markets plc, Circle Anglia Social Housing Plc and Circle Anglia Social Housing 2 Plc (the "Issuers") and is for information purposes only.

The Trading Update should not be construed as an offer or solicitation to buy or sell any securities issued by the Parent, the Issuers or any other member of the Group, or any interest in any such securities, and nothing herein should be construed as a recommendation or advice to invest in any such securities.

Statements in the Trading Update, including those regarding possible or assumed future or other performance of the Group as a whole or any member of it, industry growth or other trend projections may constitute forward-looking statements and as such involve risks and uncertainties that may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements. Accordingly, no assurance is given that such forward-looking statements will prove to have been correct. They speak only as at the date of the Trading Update and neither the Parent nor any other member of the Group undertakes any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments, occurrence of unanticipated events or otherwise.

None of the Parent, any member of the Group or anyone else is under any obligation to update or keep current the information contained in the Trading Update. The information in the Trading Update is subject to verification, does not purport to be comprehensive, is provided as at the date of the Trading Update and is subject to change without notice.

No reliance should be placed on the information or any projections, targets, estimates or forecasts and nothing in the Trading Update is or should be relied on as a promise or representation as to the future. No statement in the Trading Update is intended to be an estimate or forecast. No representation or warranty, express or implied, is given by or on behalf of the Parent, any other member of the Group or any of their respective directors, officers, employees, advisers, agents or any other persons as to the accuracy or validity of the information or opinions contained in the Trading Update (and whether any information has been omitted from the Trading Update). The Trading Update does not constitute legal, tax, accounting or investment advice.

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April 28, 2022 10:54 ET (14:54 GMT)