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LiveWest Treasury (76FQ)

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Thursday 11 November, 2021

LiveWest Treasury

6 Month Trading Update and Sustainability Report

RNS Number : 7327Q
LiveWest Treasury PLC
11 November 2021
 

LiveWest Trading Update for the 6 months ended 30 September 2021

LiveWest issues its unaudited group trading update for the 6 months ended 30 September 2021, with comparatives to the unaudited position for the 6 months ended 30 September 2020 and audited position for the 12 months ended 31 March 2021.

 

Sustainability Reporting Standard

We are pleased to announce the publication of our Sustainability Report for 2020/21. The report can be obtained by clicking the link or accessing our sustainability page at https://www.livewest.co.uk/about-us/sustainability.

 

Financial and Operating Performance

Turnover for the period of £136m is higher than in 2020 (£115m) due to £4m higher rental and other social income and £17m due to higher shared ownership and open market sales.

 

Operating costs were £22m higher in the period mainly as a result of £14m higher cost of sales of the sale of shared ownership and open market homes. Repair costs were £7m higher both due to spend returning to normal levels following the lower level of spend in the period to September 2020 as a result of COVID and increases for fire safety costs.

 

Surplus for the period is £33m (2020: £40m). The reduction is primarily due to a lower surplus on disposal of housing fixed assets; 2020 included £14m relating to sales of homes outside our core operating area.

 

Statement of Comprehensive Income





 

6 Months

6 Months


12 Months

 

Sep-21

Sep-20


Mar-21

 

£m

£m


£m

Turnover

136

115


244

Operating Costs

(100)

(78)


(183)

Surplus on Disposal of Properties

11

17


20

Operating Surplus

47

54


82

Net Interest Payable

(14)

(14)


(39)

Movement in Fair Value of Financial Instruments

-

-


3

Surplus for the period

33

40


46

 

 




Financial Indicators

 




 

6 Months

6 Months


12 Months

 

Sep-21

Sep-20


Mar-21

Operating Margin on Social Housing Lettings

31%

37%


30%

Gross Profit Margin on Shared Ownership Sales

20%

23%


23%

Gross Profit Margin on Open Market Sales

20%*

22%

 

20%**

Sales as Percentage of Turnover

26%

17%

 

21%

* Includes land sale at a reduced margin. Gross Profit Margin on sale of open market homes is 23%.

** Gross Profit Margin Percentage on Open Market Sales is before an accrual for additional work required on an historical scheme. The Margin falls to 14% with this included.

 

Sales of open market (our share only, if part of a joint venture) and shared ownership homes totalled 217 units for the period (2020: 145).

 

Sales and margins on housing sales continue to perform strongly with the shared ownership slightly reduced in the period due to the mix of sites. As at 30 September 2021, we had 60 shared ownership stock units of which 8 were unreserved (September 2020: 66,15) and 8 open market stock units (our share only, if part of a joint venture) and none are unreserved (September 2020: 8,0).

 

Housing Properties (net of depreciation) have increased to £2,165m from £2,142m at March 2021. Net Debt has remained relatively static at £848m (March 2021: £851m).

 

Customer satisfaction is 88% (September 2020: 90%). Void losses for our general needs stock were 0.45% (September 2020: 0.53%). Rent arrears were 2.54% (September 2020: 2.54%). The Average days to re-let our general needs stock is 31.5 (September 2020: 31.4 days).

 

Liquidity

At 30 September 2021 LiveWest had liquidity of £459m, consisting of available undrawn facilities of £426m, and available cash of £33m.

 

Development

387 affordable units were handed over in the period (2020: 190). We have a contracted pipeline of 2,304 affordable homes (March 2021: 2,504).

 

Building Safety

At 30 September 2021 100% of homes had an up to date Fire Risk Assessment (March 2021: 100%). 99.99% of homes had a valid Gas Safety Certificate (March 2021 99.98%) and 100% of rented homes meet the Decent Homes Standard (March 2021: 99.99%).

 

Board and Executive Team Changes - 6 months to September 2021

LiveWest Homes Ltd: There were no changes to the Board or the Executive Team.

 

LiveWest Treasury plc: there were no changes to the membership of the board.

 

LiveWest Rating

LiveWest Homes Ltd is rated A2 (stable) by Moody's (Jan 2021), and G1/V1 by the Regulator of Social Housing (Jan 2021).

 

END

 

For more information, please contact:

Andrew Hart, Director of Corporate Finance  01392 814444

 

https://www.livewest.co.uk/about-us/for-investors

Disclaimer

The information contained herein (the "Trading Update") has been prepared by LiveWest Homes Limited (the "Parent") and its subsidiaries (the "Group"), including LiveWest Treasury plc (the "Issuer") 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 Issuer 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. The information contained in the Trading Update is unaudited.

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 profit 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.

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 valuation and taxation.

 

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