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| Name | Symbol | Market | Type |
|---|---|---|---|
| Para Trsy 47 | LSE:60VT | London | Bond |
| Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 107.971 | 0 | 01:00:00 |
From Jun 2019 to Jun 2024
TIDM60VT
RNS Number : 3742W
Paragon Treasury PLC
23 April 2021
Paragon Treasury Plc
Paragon Asra Housing Limited ('PA Housing') trading update and unaudited financial results for the period ended 31 March 2021
PA Housing, the parent company of Paragon Treasury Plc and a Registered Provider owning and managing 23,000 homes in the East Midlands, London and Surrey, announces its trading highlights and unaudited summary financial results for the 2020/21 financial year.
Headline results and COVID-19 impacts
Over the year, PA Housing has delivered an operating surplus of GBP40.3m from turnover of GBP156.8m, equating to an operating margin of 26 per cent. Total comprehensive income after interest and other adjustments (including positive movement of GBP14.3m on fair value of financial instruments as at the reporting date) was GBP27.7m. Total available liquidity as at 31 March 2021 was GBP264m.
As noted in our 2019/20 Financial Statements and our 2020/21 half-year trading update, COVID-19 has had some short term impact on operations. In particular, our re-letting processes, new build completions and shared ownership sales have been affected, with the latter also being impacted by the national delays with provision of EWS1 documents. Largely as a result of these factors, turnover from lettings and sales ended the year a combined GBP18.1m (11%) behind budget. Expenditure plans were also disrupted, particularly on capital investment programmes. New development expenditure was GBP82.7m (39%) behind budget and capital maintenance was GBP3.4m (21%) behind.
At the start of the pandemic, the Board assessed these likely impacts and accepted that the volatile trading conditions would be likely to present some short-term challenges with full adherence to our financial golden rules. In fact all golden rules have been met in the year except for operating margin on social housing lettings, which ended the year at 24% versus golden rule of 30%. The largely COVID-19 related impacts on lettings affected this result by 3%. Excluding additional fire safety works prioritised by the Board, underlying operating margin on social housing lettings was at 29%.
COVID-19 has enforced some compromises on delivery of operational plans within individual financial years. The Board accepts that this will create some short-term volatility to golden rules and other headline financial metrics, but extensive scenario testing has given assurance that our financial plans remain robust and resilient into the longer term. As such, the Board is not proposing any golden rule adjustments and believes that the current rules remain appropriate once COVID-19 impacts have been worked through.
Areas of focus
Our immediate focus is to ensure that full delivery of services to our residents can continue in line with the prevailing government guidelines. At the time of this trading update, the national outlook is becoming more optimistic. As such we have a greater degree of confidence that our operational plans for the new financial year can be delivered. However, the Board will continue to closely monitor the situation and is prepared to adjust plans should trading conditions move adversely.
More broadly, our refreshed Corporate Plan published in 2020 reaffirmed that our core strategic priorities remain high quality customer services, growth, and strong underlying business infrastructure. Investment in our homes, communities and people remains paramount and there will be no compromise on the work that is needed to keep our residents safe in homes that they can be proud of. Alongside this we have an ambition to build 6,000 new homes by 2030 and the core growth strategy remains focused on social housing products (rented and home ownership). Most of our development programme will be undertaken in London and Surrey but we have also re-established a presence in the East Midlands.
Our activities will be underpinned by some emerging themes. Our 2020 Sustainability Strategy sets out the work we will be doing within the three pillars of Places, People and Partnerships to improve the sustainability of our business. COVID-19 has re-emphasised the importance of our community investment programmes, and the positive influencing role we can play in improving peoples' life opportunities through targeted investment of our resources. We have responded to the Housing White Paper with a range of new initiatives already implemented. And we will continue to champion ongoing developments around equality, diversity and inclusion to ensure that PA Housing continues to make the most of the benefits these principles can bring.
Outlook
PA Housing's long-term financial outlook is stable, in line with our business model which focuses on core social housing activities. There has been some short-term disruption due to COVID-19 but we have been working to ensure continued delivery of operations. Our liquidity position remains strong and we continue to pursue strategic funding opportunities to support our growth plans.
In March 2021 we announced that PA Housing and Accent Group were exploring partnership opportunities. This work continues and further announcements will be made at the appropriate time.
ESG
We have published our new Sustainable Finance Framework, with a Second Party Opinion provided by Sustainalytics. The Framework is available on the Investor Relations section of our website. It explains the various ways in which PA Housing works to deliver positive environmental and social outcomes, and how we will utilise future financing to further these ambitions. The Framework also sets out the governance arrangements underpinning our sustainable finance activities, including internal controls and monitoring, and reporting to external stakeholders.
Statement of Comprehensive Income to 31 March 2021 (unaudited)
Hot Features
Premium
Actual GBPm Budget GBPm Variance
GBPm
Rent and service charges income 135.9 139.1 (3.2)
------------ ------------ ---------
Shared ownership first tranche
sales 12.4 27.3 (14.9)
------------ ------------ ---------
Other income 3.2 3.2 -
------------ ------------ ---------
Amortisation of Social Housing
Grant 5.3 5.4 (0.1)
------------ ------------ ---------
Turnover 156.8 175.0 (18.2)
------------ ------------ ---------
Core operating costs (88.9) (84.6) (4.3)
------------ ------------ ---------
Depreciation and impairment (22.7) (20.5) (2.2)
------------ ------------ ---------
Cost of first tranche sales (8.5) (19.3) 10.8
------------ ------------ ---------
Surplus on fixed asset disposals 4.2 3.8 0.4
------------ ------------ ---------
Change in fair value of investment
properties (0.6) - (0.6)
------------ ------------ ---------
Operating surplus 40.3 54.4 (14.1)
------------ ------------ ---------
Net interest (26.9) (29.6) 2.7
------------ ------------ ---------
Change in fair value of financial
instruments 14.3 - 14.3
------------ ------------ ---------
Gift aid and taxation - - -
------------ ------------ ---------
Total comprehensive income 27.7 24.8 2.9
------------ ------------ ---------
Statement of Financial Position as at 31 March 2021 (unaudited)
31 Mar 21 31 Mar 20
GBPm GBPm
Negative goodwill (6.7) (7.3)
---------- ----------
Tangible fixed assets - housing
properties 1,855.3 1,751.7
---------- ----------
Tangible fixed assets - other 18.9 21.2
---------- ----------
Current assets 128.6 127.4
---------- ----------
Current liabilities (208.1) (62.8)
---------- ----------
Total assets less current liabilities 1,788.0 1,830.2
---------- ----------
Creditors due after more than
one year (1,204.8) (1,281.3)
---------- ----------
Pension liabilities and other
provisions (15.1) (13.6)
---------- ----------
Total net assets 568.1 535.3
---------- ----------
Reserves 568.1 535.3
---------- ----------
Other key metrics and indicators as at 31 March 2021 (unaudited)
Headline financials 31 Mar 21 31 Mar 20
Operating margin (social housing
lettings) 24% 26%
---------- ----------
As above excl. additional fire
safety spend 29% 26%
---------- ----------
Operating margin (all activities) 26% 37%
---------- ----------
EBITDA-MRI interest cover 136% 131%
---------- ----------
Available liquidity GBP264m GBP223m
---------- ----------
Cash GBP41m GBP46m
---------- ----------
Total loans and borrowings GBP877m GBP796m
---------- ----------
Net debt GBP835m GBP749m
---------- ----------
Gearing 43% 43%
---------- ----------
Core lettings business 31 Mar 21 31 Mar 20
---------- ----------
Current resident rent arrears 4.6% 4.4%
---------- ----------
Rent loss through voids 2.9% 2.1%
---------- ----------
Re-let times (general needs properties) 88 days 56 days
---------- ----------
Residents in receipt of Housing
Benefit 28% 30%
---------- ----------
Residents in receipt of Universal
Credit 24% 15%
---------- ----------
Development and sales 31 Mar 21 31 Mar 20
---------- ----------
Completed units: rented social
tenures 182 145
---------- ----------
Completed units: shared ownership 116 88
---------- ----------
Completed units: other 4 16
---------- ----------
Units sold 86 53
---------- ----------
Unsold units total 114 89
---------- ----------
Unsold units > 6 months 40 19
---------- ----------
Average sales margin 31% 42%
---------- ----------
Note: The above figures are based on unaudited management accounts and are subject to change following audit. In particular, pension scheme actuarial valuations as at 31 March 2021 are not yet available and so are not included in the above figures.
Enquiries
All enquiries in relation to this trading update should be directed to:
Simon Hatchman , Executive Director - Resources
Tel: 0116 257 6786
email: simon.hatchman@pahousing.co.uk
Disclaimer
The information in this preliminary announcement of interim results has been prepared by Paragon Asra Housing Limited and is for information purposes only. The announcement should not be construed as an offer or solicitation to buy or sell any securities issued by Paragon Treasury Plc or any other member of the Group, or any interest in such securities, and nothing herein should be construed as a recommendation or advice to invest in any such securities.
This unaudited announcement contains certain forward looking statements reflecting, among other things, our current views on markets, activities and prospects. By their nature, forward looking statements involve a number of risks, uncertainties or assumptions that could cause actual results to differ materially from those expressed or implied by those statements. Actual and audited outcomes may differ materially. Such statements are a correct reflection of our views only on the publication date and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. Financial results quoted are unaudited. We do not undertake to update or revise such public statements as our expectations change in response to events. Accordingly, undue reliance should not be placed on forward looking statements.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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END
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(END) Dow Jones Newswires
April 23, 2021 09:00 ET (13:00 GMT)
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