Clarion Funding plc Quarterly performance update (8684P)

TIDM96XN TIDM51GC

RNS Number : 8684P

Clarion Funding plc

21 October 2021

Clarion Funding plc

CLARION HOUSING GROUP Q2 2021/22 PERFORMANCE UPDATE

Clarion Housing Group's Quarterly Performance Update covering the period to 30 September 2021

Financial performance

The Group is pleased to report a continuing strong financial performance. The unaudited management accounts for the six months to 30 September 2021 show a turnover of GBP512 million (Q2 2020/21*: GBP432 million), delivering an operating surplus of GBP165 million (Q2 2020/21: GBP139 million).

The Group's total capital investment in existing homes during the first half of the year was GBP53 million, an increase from GBP29 million for the same period last year which reflected the Covid-19 related restrictions and a focus on emergency-only repairs during a portion of that time. Total capital investment in new homes during the first half of the year was GBP319 million (Q2 2020/21: GBP274 million).

Housing Fixed Assets stood at GBP7.96 billion, up from GBP7.78 billion as at 31 March 2021. Drawn debt was GBP4.41 billion, up from GBP4.32 billion as at 31 March 2021. Liquidity stood at GBP1.20 billion (31 March 2021: GBP1.07 billion) with committed and fully secured loan facilities at GBP5.48 billion (31 March 2021: GBP5.27 billion).

Operational performance

The Group continues to surpass its customer satisfaction targets, with repairs satisfaction last measured at 90.8% (target: 85%) and overall customer satisfaction last measured at 82.5% (target: 80%).

Rent arrears has decreased slightly from 6.0% the previous quarter to 5.9% and remains within our Covid-adjusted tolerance. We continue to provide a range of well-used support services to help our residents sustain their tenancies.

The Group completed 892 new homes during the first half of the year (Q2 2020/21: 860), 86% of which were for affordable tenures. The current development pipeline is 22,456 homes. Outright market and shared ownership sales generated an income of GBP138 million, a significant increase from the GBP77 million generated during the same period last year, with a margin of 10.9% (Q2 2020/21: 9%).

Supporting our residents and communities

Since April, the Group's charitable foundation, Clarion Futures, has helped 2,031 people into work and 49 people to set up their own business. It has also helped 2,426 people into training.

A total of 9,091 actions were undertaken by the Money Guidance Team and its external partners to help residents manage their money more effectively.

Through its grants programme, Clarion Futures allocated GBP324,483 to local community projects.

Building new homes

In September, Clarion was announced as a Strategic Delivery Partner by Homes England, having been allocated GBP249.7 million to deliver 4,770 new affordable homes under the Affordable Homes Programme 2021-26 - helping to accelerate delivery across the country.

We have also been allocated GBP240 million in grant funding from the Greater London Authority to support our plans to deliver 2,000 new affordable homes in London between 2021 and 2026.

ENDS

* 2020/21 Q2 figures taken from the unaudited Interim Report and Accounts of the Half year ended 30 September 2020 ( https://www.clarionhg.com/media/2144/chg-hy-report-and-accounts-2020-21.pdf )

For more information, please contact:

Patrick Minjauw, deputy treasurer, Clarion Housing Group - 0207 378 5580 / [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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October 21, 2021 11:48 ET (15:48 GMT)