Orbit Capital PLC Q2 Financial Update Financial Year 2021/21 (0301J)

TIDM61DS

RNS Number : 0301J

Orbit Capital PLC

17 December 2020

Orbit Group Limited's Interim Performance Update covering the six-month period to 30(th) September 2020

Throughout the first half of the financial year, we have focused efforts on our Covid-19 pandemic response, prioritising the protection of our customers, our people and our finances.

Our robust incident management plan and IT systems ensured continued operation of our services and the remobilisation of our construction teams, ensuring our operations were largely unaffected. Our teams conducted over 15,000 wellbeing calls to our most vulnerable customers, our employees were not furloughed, spend was controlled and we increased available facilities.

Throughout, our commitment to customer and employee safety, our business agility and efficient planning, has enabled us to meet these changing circumstances.

In addition, we successfully issued a GBP300m 18-year bond. This funding meets our corporate finance objectives and supports our vision at a time when affordable, quality homes and services are needed more than ever.

Highlights

   --    Turnover for the year to date was GBP151.2m (2019/20 Q2: GBP153.5m) 
   --    Operating surplus for the year to date was GBP51.0m (2019/20 Q2: GBP58.8m) 
   --    The surplus for the year to date was GBP24.1m (2019/20 Q2: GBP26.8m) 
   --    Purchase of 128 homes located in Oxford from Bromford Housing Group (October 2020) 

-- Up to 20(th) September 2020, Orbit completed 240 new homes of which 192 were affordable (2019/20 Q2: 622),

Performance Update

Despite the challenges of the pandemic, the performance of the core social housing business has remained consistent. Due to the lockdown, there has been reduced market sales activity resulting in turnover and operating surplus being lower than for the same period last year. There were 240 new homes completed in the first six months of the year.

In the first six months, there were market sales of 61 homes and sales of the initial tranche of shared ownership properties of 148 homes. Both of these figures are in excess of the 2020/21 budget (following the pandemic). Forward sales are also looking strong with 238 reservations at 30(th) September 2020 (109 market sale homes and 129 first tranche shared ownership homes).

Housing fixed assets total GBP2.7bn. Net debt at the period end was GBP1.4bn with GBP0.4bn of available liquidity. The issue of a GBP300m bond in November has meant that the liquidity position has strengthened. This level of liquidity supports both short- and medium-term vision.

Purchase of Oxford Properties

In October, Orbit completed the purchase of 128 homes in Oxford from Bromford Housing Group. The newly acquired homes consist of 104 rented homes, 10 supported housing properties, eight shared ownership homes and six leasehold homes, for a total of 128 properties.

Credit Rating

As part of a sector-wide review, Moody's confirmed Orbit's A3 rating and stable outlook on 23(rd) October 2020. Moody's quoted Orbit's credit strengths as including ample liquidity, a strong market position, adept governance and risk management.

Comment from Jonathan Wallbank, Group Finance Director: "These are positive results during unprecedented times, reflecting Orbit's resilience and strength as a business. Protecting our customers, our people and our finances remains our priority for the second half of the year whilst also delivering against our strategic objectives."

ENDS

For further information please contact: Lisa Astle, Head of Corporate Communication, 07775 633957

Disclaimer: The information contained herein (the "Interim Update") has been prepared by Orbit Group Limited (the "Parent") and its subsidiaries (the "Group"), including Heart of England Housing Association Limited, Orbit South Housing Association Limited, Orbit Capital PLC (the "Issuers") and is for information purposes only and has not been subject to external audit.

The Interim 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 Interim 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 Interim 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 Interim Update. The information in the Interim Update is subject to verification, does not purport to be comprehensive, is provided as at the date of the Interim 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 Interim Update is or should be relied on as a promise or representation as to the future. No statement in the Interim 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 Interim Update (and whether any information has been omitted from the Interim Update). The Interim Update does not constitute legal, tax, accounting or investment advice.

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Note: 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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December 17, 2020 08:00 ET (13:00 GMT)