Libra (Longhurst Group)Treasury PLC Trading Statement - Longhurst Group Q3 (1560M)

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RNS Number : 1560M

Libra (Longhurst Group)Treasury PLC

25 April 2018

Longhurst Group Trading Update for the period ending 31 December 2017

Longhurst Group ("LG") is today issuing its consolidated unaudited trading update for the nine months ended 31 December 2017.

The Statement of Comprehensive Income Comparatives (SOCI) are to LG's consolidated unaudited results for the nine months ending 31 December 2016. These results do not include the results of Axiom Housing Association Limted ("Axiom") who joined the Group on 07 July 2017. Axiom is to be accounted for as an acquisition for the purposes of the 2017/18 Financial Statements.

Highlights

-- Total turnover for the period was GBP108.8m, an increase of 29.3% on the prior year. The increase is due to the results of Axiom being included from July to December and the increase in turnover from property sales.

-- Turnover from Property Sales was GBP23.5m up from GBP9.9m in 2016 with a margin of 21.7% down from a margin of 34.5% in 2016.

   --     Net operating margin was 31.02% down from 36.16% in 2016. 
   --     Negative goodwill written off following the acquisition of Axiom was GBP5.2m. 
   --     At 31 March 2018 LG's void loss was 0.90% and arrears performance was 2.32% 

Commenting on the results to the 31 December, Robert Griffiths CFO and Deputy CEO

"LG's operating surplus for the period to the end of December was just under GBP2m better than budget at GBP33.76m.

The margin on low cost home ownership ("LCHO") sales and market sales was 21.7% to 31 December 2017, down from 34.5% for the same period in 2016. The lower net sales margin reflects the change in mix in LG's sales programme with less section 106 LCHO sales in 2017 as a proportion of total sales; section 106 LCHO sales traditionally achieve a higher margin of up to 30%.

Excluding the write off, of negative goodwill, LG now expects the surplus for the year after tax to be just over GBP20m against a budget of GBP19.8m.

Housing Completions

LG has completed 400 new homes in the nine months to 31 December 2017 and completed 518 in the year to 31 March 2018.

Two stock rationalisation acquisitions have also completed since the end of the 3(rd) quarter with 144 properties purchased from PA Housing on 26 March 2018 and 308 from Hyde Housing on 16 April 2018.

Future Development

A further 1330 units are expected to be completed by 2021/22 from current committed projects and uncommitted identified sites which are not yet in contract.

 
                                                  9 months             9 months 
                                                        to                   to 
                                                31/12/2016           31/12/2017            Movement 
                                                   GBP'000              GBP'000             GBP'000 
 Statement of Comprehensive 
  Income 
 Turnover (excluding property 
  sales)                                            74,292               85,264              10,972    14.8% 
 Turnover from property 
  sales                                              9,890               23,563              13,673   138.3% 
 Total turnover                                  84,182              108,827                 24,645    29.3% 
                                       ===================  ===================  ================== 
 
 Cost of sales                                     (7,350)             (19,358)            (12,008)   163.4% 
 Operating costs                                  (46,391)             (55,710)             (9,319)    20.1% 
 Operating surplus                               30,441               33,759                  3,318    10.9% 
                                       ===================  ===================  ================== 
 Operating margin                                   36.16%               31.02% 
 
 Surplus on sale of properties                         643                  719                  76    11.8% 
 not developed for outright 
  sale 
 Negative goodwill written 
  off                                                    -                5,225               5,225   100.0% 
 
 Movement in investment properties                       -                    -                   -    0.00% 
 Interest receivable and other 
  income                                                78                   75                 (3)    -3.8% 
 
 Interest payable and similar 
  charges                                         (18,925)             (19,224)               (299)     1.6% 
 
 Actuarial gains/losses in 
  respect                                                -                    -                   -    0.00% 
 of pension schemes 
 
 Tax payable                                         (115)                (376)               (261)   226.6% 
 
 Surplus for the period                             12,122               20,178               8,056    66.5% 
                                       ===================  ===================  ================== 
 
 
 
 
 
                                                  31/03/2017         31/12/2017 
 Statement of Financial Position                     GBP'000            GBP'000 
 
 Fixed assets 
 Housing properties                                  912,739          1,045,751 
 Investment properties                                 5,449              5,449 
 Other fixed assets                                   14,366             17,628 
                                                     932,554          1,068,827 
                                           =================  ================= 
 
 Current assets 
 Stock                                                26,214             18,817 
 Trade and other debtors                               3,562              2,283 
 Cash and cash equivalents                            10,122             16,320 
                                                      39,898             37,420 
                                           =================  ================= 
 
 Creditors: amounts falling due within 
  one year                                          (22,006)           (26,367) 
 
 Net current assets/(liabilities)                     17,892             11,052 
                                           =================  ================= 
 
 Total assets less current liabilities               950,446          1,079,880 
                                           =================  ================= 
 
 Creditors: amounts falling due after 
  one year 
 Loans                                             (497,766)          (555,259) 
 SHPS pension agreement plan                        (10,610)           (13,430) 
 Deferred capital grant                            (228,011)          (273,692) 
 
                                                   (736,387)          (842,381) 
                                           =================  ================= 
 
 Pension provision                                   (3,505)            (3,505) 
 
 Total net assets                                    210,554            233,994 
                                           =================  ================= 
 
 Capital and reserves 
 Revenue reserve                                     102,487            122,665 
 Revaluation reserve                                 139,502            139,502 
 Cashflow hedge reserve                             (32,435)           (29,173) 
 Designated reserves                                   1,000              1,000 
 
                                                     210,554            233,994 
                                           =================  ================= 
 

For Further information, please contact:

Rob Griffiths, Chief Financial Officer & Deputy Chief Executive

Kate Wood, Director of Corporate Finance

For media enquiries, please contact:

Jon Reeves, Press and PR Manager

Longhurst Group 0345 30 90 700

This information is provided by RNS

The company news service from the London Stock Exchange

END

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April 26, 2018 02:00 ET (06:00 GMT)