Libra (Longhurst Group)Treasury PLC Trading Update - Longhurst Group Limited Q3 (4970D)

TIDM38LT

RNS Number : 4970D

Libra (Longhurst Group)Treasury PLC

19 February 2020

Longhurst Group Trading Update for the period ending 31 December 2019

Longhurst Group Ltd ("LG") is today issuing its consolidated unaudited trading update for the nine months ended 31 December 2019.

The Statement of Comprehensive Income Comparatives (SOCI) are to LG's consolidated unaudited results for the nine months ending 31 December 2018.

Highlights

-- Total turnover excluding property sales for the period was GBP94.6m, a decrease of 0.64% on the prior year. This year is the final year of 1% per annum rent decreases, and the rental policy reverts to CPI+1% for at least five years from 01 April 2020.

-- Property sales maintain a strong margin of 20.60% compared to 22.24% from 2018. Property sales turnover is GBP8.5m lower to December 2019 compared to the year to date position at December 2018.

-- As at December 2019, we had completed 167 Property sales in the year compared to a year to date target of 165.

-- The slightly lower margin on property sales is a result of a gradual move towards more land led opportunities from section 106.

   --    Operating margin was 33.13% down from 33.80% in 2018. 

-- The increase in the gain on disposal of PPE is due to the volume of voluntary right to buy sales which have completed in the period to December 2019

-- Included within operating costs to December 2019 are GBP1.6m of costs relating to exiting of local government pension schemes.

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 over GBP2.5m better than budget at GBP37.9m.

The margin on low cost home ownership ("LCHO") sales and market sales was 20.60% to 31 December 2019, down from 22.24% for the same period in 2018. The continued strong sales performance is backed by healthy first tranche sale percentages, which are consistently averaging above 43%. Our average sales period is reducing and stands at 2.9 months for the year to December 2019; we are experiencing a continued strong demand with properties being sold off plan."

Housing Completions

LG are forecasting to complete 552 completions in the year to 31 March 2020 compared to a business plan target of 551.

Future Development

A further 708 units are within the business plan to be completed by 2021/22, 626 of which are from current committed projects and uncommitted identified sites which are not yet in contract.

 
                                                 9 months               9 months 
                                                       to                     to 
                                               31/12/2019             31/12/2018            Movement 
                                                  GBP'000                GBP'000             GBP'000 
 Statement of Comprehensive 
  Income 
 
 Turnover (excluding property 
  sales)                                           94,571                 95,180               (609)   -0.64% 
 Turnover from property sales                      19,940                 28,459             (8,519)   -42.72% 
 Total turnover                                   114,511                123,639             (9,128)   -7.97% 
                                    =====================  =====================  ================== 
 
 Cost of sales                                   (15,832)               (22,129)               6,297   -39.77% 
 Operating costs                                 (63,641)               (60,940)             (2,701)   4.24% 
 Gain on disposal of PPE (fixed 
  assets)                                           2,903                  1,215               1,688   58.15% 
 Operating surplus                                 37,941                 41,785             (3,844)   -10.13% 
                                    =====================  =====================  ================== 
 Operating margin                                  33.13%                 33.80% 
 
 
 Movement in investment properties                      -                      -                   - 
 
 Interest receivable and other 
  income                                              234                    180                  54   23.08% 
 
 Interest payable and similar 
  charges                                        (20,766)               (22,013)               1,247   -6.01% 
 
 Actuarial gains/losses in 
  respect                                               -                      -                   - 
 of pension schemes 
 
 Tax payable                                         (81)                   (65)                (16)   19.75% 
 
 Surplus for the period                            17,328                 19,887             (2,559)   -14.77% 
                                    =====================  =====================  ================== 
 Net margin                                        15.13%                 16.09% 
 
 
 
                                                    31/12/2019            31/03/2019 
                                                       GBP'000               GBP'000 
 Statement of Financial Position 
 
 Fixed assets 
 Housing properties                                  1,158,276             1,105,338 
 Investment properties                                   8,527                 8,377 
 Other fixed assets                                     17,624                17,552 
                                                     1,184,427             1,131,267 
                                           ===================  ==================== 
 
 Current assets 
 Stock                                                  16,582                26,717 
 Trade and other debtors                                10,249                 8,136 
 Cash and cash equivalents                              13,110                43,278 
                                                        39,941                78,131 
                                           ===================  ==================== 
 
 Creditors: amounts falling due within 
  one year                                            (26,845)              (41,354) 
 
 Net current assets/(liabilities)                       13,096                36,777 
                                           ===================  ==================== 
 
 Total assets less current liabilities               1,197,523             1,168,044 
                                           ===================  ==================== 
 
 Creditors: amounts falling due after 
  one year 
 Loans                                               (592,930)             (587,320) 
 RCGF                                                  (1,196)               (1,196) 
 Loan issue costs                                        9,485                 9,006 
 Mark to market position                            (28,756)                (25,552) 
 Deferred capital grant                              (292,390)             (280,747) 
                                                     (905,787)             (885,809) 
                                           ===================  ==================== 
 
 Pension provision                                    (24,429)              (29,333) 
 
 Total net assets                                      267,307               252,902 
                                           ===================  ==================== 
 
 Capital and reserves 
 Revenue reserve                                       157,859               140,250 
 Revaluation reserve                                   137,204               137,204 
 Cashflow hedge reserve                               (28,756)              (25,552) 
 Designated reserves                                     1,000                 1,000 
 
                                                       267,307               252,902 
                                           ===================  ==================== 
 

The consolidated accounts of Longhurst Group Limited have been available since September 2019 on the Group website publications section, link as follows; https://www.longhurst-group.org.uk/media/2636/web-lg-financial-statement-2019.pdf

In February 2020 Longhurst Group had its governance and viability ratings confirmed by the regulator as V1/G1, link as follows; https://www.gov.uk/government/publications/regulatory-judgement-longhurst-group-limited

The current Longhurst Group board members are:

Robert Wilson, Julie Doyle, Parmjit Dhanda, Patricia Brandum, Stephen Wenham, Angela Morris, Gabriel Behr and Jenny Brown

Resignations since 31(st) March 2019 are Clive Barnett, Daniel Elkins and Hilary Lindsay

Appointments since 31(st) March 2019 are Gabriel Behr

Following the transfers of engagements of Longhurst & Havelok Homes Limited, Spire Homes (LG) Limited, Friendship Care and Housing Limited and Axiom Housing Association Limited to Longhurst Group Limited on 1 July 2019, the Homes Board was disbanded. Further details of the updated governance structure are available in the Longhurst Group Limited's consolidated accounts.

The current Libra (Longhurst Group) Treasury plc and Libra (Longhurst Group) Treasury No.2 plc board members are:

Clive Barnett, Robert Griffiths, Angela Morris and Karen Preece

Resignations since 15(th) May 2018 are Daniel Elkins, Alan Lewin and Hilary Lindsay

Appointments since 15(th) May 2018 are Angela Morris and Karen Preece

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

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END

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February 19, 2020 07:43 ET (12:43 GMT)