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Clarion Funding plc (96XN)

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Tuesday 26 January, 2021

Clarion Funding plc

Quarterly performance update

RNS Number : 9574M
Clarion Funding plc
26 January 2021
 

Clarion Funding plc

CLARION HOUSING GROUP Q3 2020/21 PERFORMANCE UPDATE

Clarion Housing Group's quarterly performance update covering the period to 31 December 2020 .

Financial performance

The Group is pleased to report a strong financial performance, as the unaudited management accounts for the nine months ended 31 December 2020 show an operating surplus of £203 million (2019: £199 million).

Total capital investment in new homes was £497 million, increased from £426 million over the same period the year prior, whilst total capital investment in existing homes was £59 million, again increased from £43 million the year prior. The increase in investment underpins the Group's commitment to provide much needed affordable homes and to improve the quality of its existing homes.

Housing fixed assets stood at £7.65 billion, up from £7.44 billion as at 31 March 2020. Drawn debt as at 31 December 2020 was £4.29 billion, up from £4.04 billion as at 31 March 2020. Liquidity stood at £1.25 billion (31 March 2020: £0.90 billion) and committed and immediately available loan facilities were £5.44 billion (31 March 2020: £4.83 billion).

Operational performance

Overall customer satisfaction has been maintained above the 80% target at 80.9% and we have been able to continue to deliver a full repairs service, establishing safety systems to allow our operatives to carry out the work required to maintain our homes. Repairs performance is good and customers' satisfaction with repairs was last measured at 89.1%, against a target of 85%. Occupancy remains high and the rate is slightly above target at 98.3%. Arrears have been maintained at 6.1%, in line with the previous quarter and within the Covid-adjusted tolerance.

We have completed a total of 1,452 new homes, compared to 1,237 for the same period last year, of which nearly 90% were for affordable tenures. The Group's pipeline currently stands at around 18,900 homes.

Completion of outright sales and shared ownership have generated an income of £132 million in the year to date, an increase on the £88 million in the year prior, with an average margin of 10% (2019: 14.5%). As anticipated, the margin continues to improve since the beginning of the year but does still reflect forward funded marketing costs for future launches.

Land and development

Following the successful sales launch of The Cocoa Works, the former Rowntree factory in York, Latimer, the development arm of Clarion Housing Group, has announced the acquisition of an adjacent 11 acre brownfield site. The new development, 'Cocoa West,' will comprise homes for private sale, shared ownership and rent.

In December work began at Ashmere, a landmark scheme on the former Eastern Quarry, part of Ebbsfleet Garden City in Kent. Delivered in partnership with Countryside, Ashmere is set to become a new sustainable neighbourhood comprising 2,600 mixed-tenure homes of which 25% will be affordable, as well as a new primary school and a village centre.

Supporting people during   Covid-19

The Group's Charitable Foundation, Clarion Futures, has continued to provide vital support for our residents and communities and since the start of April has supported 1,824 people into employment, securing training for 3,398 people and helping 129 people to set up their own business. In addition, 14,152 money guidance and financial inclusion interventions have been made.

Through our Covid-19 Recovery & Resilience Programme a total of £135,439 was awarded in Q3 to 29 projects providing adapted or reinstated activities and essential services in communities where we have a presence.

Alleviating homelessness

The Group has secured more than £1.3 million in funding from the Government's Next Steps Accommodation Programme (NSAP) to provide homes for former rough sleepers. Alongside an upfront £300,000 investment by Clarion, the funding will be used to purchase twenty one-bedroom properties across Broadland, South Norfolk and Fenland in the east of England. These properties will provide long-term, secure homes for rough sleepers currently housed in temporary accommodation by Broadland District Council, South Norfolk Council and Fenland District Council.

Sustainability

The Group issued its first ESG report at the end of October. It has also completed the annual review of its Certified Sustainable Housing Label and is pleased to report the Group retains the Label for the coming year.

In November, the Group was delighted to raise its second sustainable bond. The funds raised will enable the Group to further pursue its mission by delivering much needed energy efficient affordable homes.

ENDS

For more information, please contact:

Patrick Minjauw, interim director of treasury and corporate finance, Clarion Housing Group - 0207 378 5580 / [email protected]  

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