Quarterly performance update

Clarion Funding plc

25 July 2023

 

Clarion Funding plc

CLARION HOUSING GROUP Q1 2023/24 PERFORMANCE UPDATE

Clarion Housing Group's Quarterly Performance Update covering the period to 30 June 2023

Financial performance

The unaudited management accounts for first quarter of the financial year 2023/24 show a turnover of £243.9 million and an operating surplus of £52.8 million. Direct comparatives for the three months to June 2022 are not available due to the impact of the cyber security incident last year. However, revenue is broadly similar to last year and operating surplus is lower but within expectations, given the lower level of planned disposals in Q1 2023 versus Q1 2022 and the increased investment in repairs and maintenance.

The Group has continued to invest significantly in its existing homes, with £27.3 million invested in improvements by the end of June 2023. £105.8 million was also invested in our new homes programme, a lower level compared to recent years reflecting a continuation of the more cautious approach we have adopted in light of challenging market conditions.

Housing Fixed Assets stood at £8.39 billion, the same position as for the full financial year ending 31 March 2023. Drawn debt was £4.49 billion, up marginally from £4.46 billion as at 31 March 2023. Liquidity stood at £0.97 billion (31 March 2023: £1.02 billion) with committed and fully secured loan facilities at £5.39 billion (31 March 2023: £5.41 billion). 

Operational performance

We have exceeded our overall customer satisfaction target of 80%, with the score last measured at 82%. Repairs performance remains good, with satisfaction last measured at 90.3%, exceeding our internal target of 85%.

Rent arrears has improved to 8.4%, from 8.7% at the end of the last financial year. Our Tenancy Sustainment teams continue to work with our residents in need of support, and our charitable foundation, Clarion Futures, provides a range of services to help residents maximise their income and manage their finances.

The Group has completed 141 homes over the first quarter the financial year - of which 65% were for affordable tenures. The current pipeline remains in excess of 20,000 homes, and we retain significant flexibility over the timing of delivery of these homes, depending on market conditions.

Outright market and shared ownership sales generated a sales income of £35.5 million, with a margin of 10.1%.

Sustainability

In April, Clarion's individual and partnership work to retrofit homes as part of the government's landmark Social Housing Decarbonisation Fund was shortlisted in two separate categories - 'Green Homes Upgrade of the Year' and 'Collaboration of the Year' - in the inaugural Unlock Net Zero Live Awards. The awards recognise and champion the housing sector's progress on the journey to decarbonisation.

Supporting our residents and communities

During the first quarter, the Group's charitable foundation, Clarion Futures, has supported 510 people into jobs and 1,770 into training. In addition, 25 people have been helped to set up their own business.

Rising costs of living means demand for support from our Clarion Futures Money service remains high, and 3,091 money guidance and financial inclusion interventions have been made by the service and its external partners. 

During the quarter, we have awarded a total of £59,577 in grant funding to organisations including food banks, community groups and local charities tackling issues such as loneliness and isolation.

ENDS

For more information, please contact:

Andrew Hill, Director of Treasury and Corporate Finance, Clarion Housing Group - 0203 840 0164 / [e-mail] 

Lucy Pond, Senior Communications Manager, Clarion Housing Group - 0207 378 5555 / [e-mail] 

Disclaimer

The information contained herein (the "Trading Update") has been prepared by Clarion Housing Group Limited (the "Parent") and its subsidiaries (the "Group"), including Clarion Funding plc, Affinity Sutton Capital Markets plc, Circle Anglia Social Housing Plc and Circle Anglia Social Housing 2 Plc (the "Issuers") 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 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 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.

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 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 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.

www.clarionhg.com 

 

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