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Clarion Funding plc (96XN)

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Wednesday 23 October, 2019

Clarion Funding plc

Quarterly performance update

RNS Number : 8950Q
Clarion Funding plc
23 October 2019

Clarion Funding plc


Clarion Housing Group's quarterly performance update covering the period to 30 September 2019

Clarion Housing Group announces the following performance update ahead of its more comprehensive auditor-reviewed half year results, which will be published in December.

Financial performance

The unaudited management accounts for the six months ended 30 September 2019 show an operating surplus of £139 million (2018: £154 million). The reduction in operating surplus is a result of our increased focus on customer services along with careful management of our development sales programme.  In particular, the year on year variance reflects increased investment (£5m) in our front line services, additional depreciation (£5m) from social housing assets as our programme of affordable development increases and, in line with market conditions, a lower surplus on development sales (£5m).

Housing Fixed Assets stood at £7.30 billion, up from £7.12 billion as at 31 March 2019. Drawn debt as at 30 September 2019 was £3.99 billion, up from £3.89 billion as at 31 March 2019. Liquidity stood at £0.67 billion (31 March 2019: £0.75 billion) and committed and fully secured loan facilities were £4.55 billion (31 March 2019: £4.46 billion).

In July, Clarion issued a £100m tap of its existing 2048 bond utilising its EMTN programme documentation.

Operational performance

The Group continues to focus on delivering new homes with the majority being for affordable tenures.  Total capital investment in new homes in the first half of the financial year was £272.4 million, an increase from £218.1 million in the same period the year prior. Completions of outright sales and shared ownership generated an income of £ 43.2 million (2018/19: £46.6 million) with a margin of 18% (2018/19: 27%).  These margins are in line with our market expectations.  Since 1st April 2019, 691 new homes have been completed of which 665 (96%) were for affordable tenures; while 1,132 homes have been started, 968 (86%) of which were for affordable tenures.

At the mid point in the year Clarion Futures, the Group's charitable trust, has delivered £62.35 million in social value from its activities which have included helping 2,019 people get a job as well as helping over 5,000 young people into volunteering, training or work and supporting 1,500 people with free debt advice.

Repairs performance continues to be strong, with customer satisfaction with repairs last measured at 89.4%, above the 85% target. Overall customer satisfaction at 79.8% remains strong but just under the 80% target.

Rent arrears at 5.3% have seen a small improvement since the last quarter and do remain a key priority focus for the business.

During the quarter, Clarion launched its new shared ownership homes at Battersea, forming part of the wider Prince of Wales Drive redevelopment and released a further tranche of new homes at Ebbsfleet Garden City. Major plans to regenerate the Barne Barton estate in Plymouth also moved a step closer with the City Council granting full planning permission and the first homes at the 110-home scheme in Hailsham, East Sussex, were completed.

In July Clarion announced the selection of three preferred bidders to each deliver a twenty-year planned investment contract. The investment programme will see Clarion residents benefit from refurbishments and improvements to their homes.

As previously announced, in September Clarion sold Invicta Telecare Ltd., known as Centra Pulse & Connect, to Doro Group to allow the Group to focus on its core operations.



For more information, please contact:

Gareth Francis, director of treasury and corporate finance, Clarion Housing Group - 0778 7555655 / [email protected]

Lucy Pond, communications manager, Clarion Housing Group - 0771 8269023 / [email protected]



The information contained herein (the "Trading Update") has been prepared by Clarion Housing Group Limited (the "Parent") and its subsidiaries (the "Group"), including 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. 


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