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LiveWest Treasury (76FQ)

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Friday 13 May, 2022

LiveWest Treasury

Trading Update March 2022

RNS Number : 4914L
LiveWest Treasury PLC
13 May 2022
 

LiveWest Trading Update for the 12 months ended 31 March 2022

LiveWest issues its unaudited group trading update for the 12 months ended 31 March 2022, with comparatives to the audited position for the 12 months ended 31 March 2021.

 

Financial and Operating Performance

Turnover for the period of £271m is higher than in 2021 (£244m) due to £7m higher rental and other lettings income and £20m due to higher shared ownership and open market sales.

 

Operating costs were £26m higher in the period mainly as a result of £16m higher cost of sales on the sale of shared ownership and open market homes. Repair costs were £9m higher both due to spend returning to normal levels following the lower level of spend in the period to March 2021 as a result of COVID and increases for fire safety costs and new energy efficiency spend.

 

Net Interest Payable is £8m lower as 2021 included a £9m cost of restructuring fixed rate swaps.  Surplus for the period is £53m (2020: £46m).

 

Statement of Comprehensive Income




12 months

12 Months


Mar-22

Mar-21


£m

£m

Turnover

271

244

Operating Costs

(209)

(183)

Surplus on Disposal of Properties

19

20

Operating Surplus

81

82

Net Interest Payable

(31)

(39)

Revaluation of investment property

2

-

Movement in Fair Value of Financial Instruments

1

3

Surplus for the period

53

46




Financial Indicators




12 months

12 Months


Mar-22

Mar-21

Operating Margin on Social Housing Lettings

27%

31%

Gross Margin on Shared Ownership Sales

21%

23%

Gross Profit Margin on Open Market Sales

21%

20%*

Sales as Percentage of Turnover

26%

21%

* 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 403 units for the year (2020: 335).

 

Sales and margins on housing sales continue to perform strongly with shared ownership margins slightly reduced in the year due to the mix of sites. As at 31 March 2022, we had 64 shared ownership stock units of which 13 were unreserved (March 2021: 100 stock/32 unreserved) and 10 open market stock units (our share only, if part of a joint venture) and 3 of which are unreserved (March 2021: 8 stock 4 unreserved).

 

Housing Properties (net of depreciation) have increased to £2,220m from £2,142m at March 2021. Net Debt has increased to £883m (March 2021: £851m).

 

Customer satisfaction is 87% (March 2021: 90%). Void losses for our general needs stock were 0.56% (March 2021: 0.47%). Rent arrears were 2.03% (March 2021: 2.02%).

 

Liquidity

At 31 March 2022 LiveWest had liquidity of £421m, consisting of available undrawn facilities of £402m, and available cash of £19m.

 

Development

800 affordable units were handed over in the year (2020: 701). We have a contracted pipeline of 2,414 affordable homes (March 2021: 2,504).

 

Building Safety

At 31 March 2022 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 - 12 months to March 2022

LiveWest Homes Ltd: Andrew Wiles retired from the board in February 2022. Joanna Crane and Rahul Jaitly were appointed on 31 March 2022.

 

Rahul has over 25 years experience working across a number of industry sectors providing broad global IT leadership, digital transformation / innovation management and board advisory services for private equity / venture capital-backed companies. He is currently a Non-Executive Director at Surrey and Borders Partnership NHS Foundation Trust, a Trustee of Change Grow Live and a Non-Executive Director at PA Housing. He previously served as the Group Chief Information Officer at L&Q Group and held senior roles at Kuoni Group, Universal Music Group, GlobalNetFinancial.com and the Financial Times.

 

Joanna has more than 25 years in banking and financial services, most recently at the European Investment Bank in Luxemburg. She has worked across a range of disciplines within both UK, EMEA and International operations, beginning her career at Credit Suisse in private banking before moving into corporate banking and structured finance. A focus on strategy and communications led to several years in IT during European Monetary Union and Y2K and thence to HR, to lead on Organisational development and change management.  Joanna has led strategic transformation projects and organisational design initiatives, and has a particular focus on career development and equal opportunities in both public and private sector businesses.  Joanna has been a NED in the NHS since 2009, chairing Quality and Risk committees and is currently Senior Independent Director at University Hospitals Sussex. Joanna recently moved to Devon and lives in Totnes.

 

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 (Mar 2022), and G1/V1 by the Regulator of Social Housing (March 2022).

 

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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