LiveWest Treasury PLC Trading Update (2884Z)

TIDM76FQ

RNS Number : 2884Z

LiveWest Treasury PLC

12 May 2023

LiveWest Trading Update for the 12 months ended 31 March 2023

LiveWest issues its unaudited group trading update for the 12 months ended 31 March 2023, with comparatives to the audited position for the 12 months ended 31 March 2022.

Financial and Operating Performance

Turnover for the year of GBP300m is GBP29m higher than in 2022 (GBP271m) due to GBP10m higher rental and other lettings income and GBP19m higher shared ownership and open market sales.

Operating costs were GBP28m higher in the year mainly as a result of GBP15m higher cost of sales of the sale of shared ownership and open market homes, repair costs GBP8m higher (due to an increase in damp and mould related volumes and spend, higher planned spend as a result of fire safety works and higher cost responsive repairs).

Surplus for the period is GBP54m (2022: GBP53m) Movement in Fair Value of Financial Instruments has increased our surplus for the period by GBP6m (2022: GBP1m). This improvement reflects increases to the yield curve in the year, reducing the liability of our one swap instrument which is not hedge accounted.

 
 Statement of Comprehensive Income 
                                        12 Months   12 Months 
                                           Mar-23      Mar-22 
                                             GBPm        GBPm 
 Turnover                                     300         271 
 Operating Costs                            (239)       (211) 
 Surplus on Disposal of Properties             16          19 
 Operating Surplus                             77          80 
                                       ---------- 
 Net Interest Payable                        (28)        (30) 
 Revaluation of Investment Property           (1)           3 
 Movement in Fair Value of Financial 
  Instruments                                   6           1 
 Surplus for the period                        54          53 
                                       ---------- 
 
 Financial Indicators 
                                        12 Months   12 Months 
                                           Mar-23      Mar-22 
 Operating Margin on Social Housing 
  Lettings                                    23%         26% 
 Gross Margin on Shared Ownership 
  Sales                                       22%         21% 
 Gross Profit Margin on Open Market 
  Sales                                       19%         19% 
 Sales as Percentage of Turnover              29%         26% 
-------------------------------------  ----------  ---------- 
 

Sales of open market (our share only, if part of a joint venture) and shared ownership homes totalled 441 units for the year (2022: 403).

Sales and margins on housing sales continue to perform strongly, with margins stable compared to 2022. As at 31 March 2023, we had 105 shared ownership stock units, of which 44 were unreserved (March 2022: 64 stock/13 unreserved), and 7 open market stock units (our share only, if part of a joint venture), of which 4 were unreserved (March 2022: 10 stock 3 unreserved).

Housing Properties (net of depreciation) have increased to GBP2,317m from GBP2,227m at March 2022. Net Debt has increased to GBP941m (March 2022: GBP913m).

Customer satisfaction is 86% (March 2022: 87%). Void losses for our general needs stock were 0.54% (March 2022: 0.56%). Rent arrears were 1.83% (March 2022: 2.03%).

Liquidity

At 31 March 2023 LiveWest had liquidity of GBP377m, consisting of available undrawn facilities of GBP365m, and available cash of GBP12m.

Development

988 homes for rent and shared ownership were handed over in the year (2022: 800). We have a contracted pipeline of 2,006 affordable homes (March 2022: 2,414).

Building Safety

At 31 March 2023 100% of homes had an up to date Fire Risk Assessment (March 2022: 100%). 100% of homes had a valid Gas Safety Certificate (March 2022: 99.99%) and 100% of rented homes met the Decent Homes Standard (March 2022: 100%).

Board and Executive Team Changes - 12 months to March 2023

There have been no changes to the Board in the year to March 2023.

LiveWest Treasury plc: there were no changes to the membership of the board.

LiveWest Rating

LiveWest Homes Ltd is rated A2 (negative) by Moody's (Mar 2023), and G1/V1 by the Regulator of Social Housing (December 2022).

END

For more information, please contact:

   Andrew Hart, Director of Corporate Finance                        01392 814444 

https://www.livewest.co.uk/about-us/for-investors

Disclaimer

The information contained herein (the "Trading Update") has been prepared by LiveWest Homes Limited (the "Parent") and its subsidiaries (the "Group"), including LiveWest Treasury plc (the "Issuer") 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 Issuer 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. The information contained in the Trading Update is unaudited.

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 a profit 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.

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 valuation and taxation.

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May 12, 2023 09:26 ET (13:26 GMT)