Clarion Funding plc

Quarterly Performance Update

RNS Number : 2225L
Clarion Funding plc
28 April 2020
 

GENERAL TEXT AMENDMENT

The following amendments have been made to the Quarterly Performance Update announcement released on 28.04.2020 at 10.49am under RNS No 1592L.

The prior year (2018/19) full year pre-tax net surplus has been corrected to show £154 million. A typographical change was also made to remove a set of brackets.

All other details remain unchanged.

The full amended text is shown below.

QUARTERLY PERFORMANCE UPDATE

Clarion Housing Group's Quarterly Performance Update covering the period to 31 March 2020

Clarion Housing Group announces the following update ahead of its Annual Report for the year ended 31 March 2020.  

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 and financial instrument valuation and taxation. Comparative data is from the audited financial statements for the year ended 31 March 2019 ("2018/19").

 

Financial performance

The unaudited management accounts for the 12 months to 31 March 2020 show a turnover of £841 million (2018/19: £816 million),  delivering an operating surplus of £290 million - £8 million above the prior year - and a full year pre-tax net surplus of £161 million (2018/19: £154 million).

The Group invested £565 million in new homes (2018/19: £510 million) and a further £99 million in its existing stock (2018/19: £121 million). £16 million was spent on fire safety work (2018/19: £20 million) and included the use of innovative new 3D modelling technology to enhance asset information and create a digital record of the Group's stock. Community investment in charitable activities was also significant at £12 million (2018/19: £12 million).

Housing Fixed Assets stood at £ 7.44 billion, up from £7.12 billion as at 31 March 2019. Drawn debt as at 31 March 2020 was £4.03 billion, up from £3.89 billion as at 31 March 2019. Liquidity stood at £0.90 billion (31 March 2019: £0.75 billion) and committed and fully secured loan facilities were £4.83 billion (31 March 2019: £4.46 billion).  During the quarter the Group raised further funding via note issuance utilising its EMTN programme documentation, including issuance of a £350 million Sustainable Bond.

Operational performance

The Group achieved a year-end overall customer satisfaction score of 80.9%, exceeding an 80% internal target. Repairs satisfaction continues to perform well and was last measured at 88.8%, above an internal target of 85%. Arrears has dropped to 5.2%, down from 5.5% the previous quarter, following continued focus on support and intervention, as well as arrears recovery.

Outright market and shared ownership sales performed in line with expectations returning a margin of 13%, prior to any final adjustments (2018/19: 13%). 109 homes for open market sales were sold generating revenue of £54 million (2018/19: 37 million) whilst 618 shared ownership sales generated revenue of £74 million (2018/19: 57 million). During the year there were 2,101 housing completions (86% of which were for affordable tenures) whilst 2,572 homes were started (83% of which were for affordable tenures). The current development pipeline remains in excess of 17,000 homes.

During the quarter the Group announced three joint venture partnerships to deliver new homes in Cambridgeshire, Northampton and Cheshire. Planning permission was secured for a new, mixed tenure development comprising over 700 homes in Rainham as part of the major regeneration framework around the new 'Beam Park' station and contracts were exchanged with Mid Group to build 152 new affordable homes on the banks of the River Avon in the centre of Bristol. In addition, plans to bring forward one of Yorkshire's largest shared ownership schemes moved a step closer with revised planning permission granted to transform a former Rowntree factory into much-needed affordable homes.

Regulatory grading

In March, following an In Depth Assessment, the Regulator of Social Housing reaffirmed Clarion's G1/V1 ratings, the highest possible ratings for governance and viability. Its judgment underlines the Group's strength as an organisation and is recognition of the hard work, professionalism and achievements of all its staff.

Sustainability

The Group's charitable foundation, Clarion Futures, has completed another successful year, including supporting 3,834 people into work, helping to place 254 apprenticeships and helping 208 individuals start up their own business. In addition, 31,000 money guidance and digital skills support interventions were delivered and 7,561 young people helped with a job, formal training or volunteering opportunities.

During the quarter the Group completed its move to 100% zero carbon electricity for all its landlord supplies and offices where it pays the energy bills directly, meaning it now has traceable supply from zero carbon electricity sources.

Covid-19

An update was issued on 3rd April 2020 on the Group's response to Covid-19 . Business continuity arrangements have been embedded; performance against these is good.  Planning for the recovery period continues to make sure the Group will be back up and running at full service levels as quickly as possible across key activities.

ENDS

For more information, please contact:

Gareth Francis, director of treasury and corporate finance, Clarion Housing Group - 07787 555655 / [email protected]  

Lucy Pond, communications manager, Clarion Housing Group - 07718 269023 / [email protected]  

 

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 a pro t 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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