Flagship Finance PLC Flagship performance update

RNS Number : 4747D

Flagship Finance PLC

16 February 2024

 

Flagship Finance Plc

Issued: 16 February 2024

 

Flagship Housing Group Limited ('Flagship' or 'Flagship Housing Group') performance update

 

"FLAGSHIP GROUP DELIVERS STRONG PERFORMANCE"

 

Flagship Housing Group, East Anglia's leading provider of housing, today announces its trading update for the 9-month period to 31 December 2023 (the "Period").

 

Headline results and key highlights

·    Turnover of £189m year to date, of which £137m (72%) is turnover from social housing, up from 65% in 2022/23;

·    Operating margin (including asset disposals and gain on joint ventures) of 39% compared to 33% in 2022/23;

·    Operating surplus of £74m compared to £64m in 2022/23;

·    465 new affordable homes delivered year to date compared to 353 in 2022/23;

·    Arrears percentage remains steady year-on-year and void loss is at lowest point since before the pandemic;

·    60% of our homes are at EPC C or above;

·    Social lettings interest cover increased to 244% from 231% in 2022/23; and

·    Gearing continues to fall, down to 43% from 44% in 2022/23.

 

We continue to track favourably against key financial performance metrics delivering against our annual budget priorities as we head toward the end of our financial year.

Our purpose is to provide homes and create sustainable communities. Our 5-year plan includes c.£0.5bn investment in our existing homes and c.2,500 new affordable homes, testament to our robust financial viability which enables us to continue building new homes and improving our existing homes despite the economic challenges all registered providers are facing.

 

Message from Chief Financial Officer

Jonathan McManus, Chief Financial Officer, Flagship said:

"We continue to deliver strong financial performance in line with our budget and longer-term business plan. Our disciplined approach means that we can continue to invest in our properties and services to customers.

"So far, this financial year, we've invested over £74m in our existing stock and more than £90m into building new homes. Our arrears have continued to reduce since 2021, despite cost-of-living pressure on our tenants. This is primarily due to our data-driven approach that empowers us to identify trends at an early stage, allowing us to offer a supportive response to those in arrears. Additionally, by proactively engaging with new tenants from the outset, we've been able to help them thrive in their tenancies.

"We have our lowest level of voids since before the pandemic, and have confidence in our long-term investment plans, following the completion of our programme to enhance our stock condition survey position. We also believe that our tenant satisfaction scores are competitive against our peers.

"Our performance continues to be underpinned by our focus on great people doing great things and spending money wisely and together with our sound leadership, delivers solid governance and robust financial viability."

Please find a link to our latest Investor update recording which has been published on our website. www.flagship-group.co.uk/performance-update

If you would like a separate 121 session or have any specific questions, please contact our investor relations team on [e-mail]

 

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