Information  X 
Enter a valid email address

LiveWest Treasury (76FQ)

  Print   

Monday 09 November, 2020

LiveWest Treasury

Trading Update September 2020

RNS Number : 7235E
LiveWest Treasury PLC
09 November 2020
 

LiveWest Trading Update for the 6 months to September 2020

 

LiveWest issues its unaudited group trading update for the 6 months ended 30 September 2020, with comparatives to the unaudited position for the 6 months ended 30 September 2019, together with an update on LiveWest's response to Covid-19.

 

Covid-19 - Supporting customers, colleagues and communities

From 1 September we started offering a full repairs service to our customers whilst maintaining safety checks in line with government guidelines. We have made excellent progress with the backlog of repairs that built up over the four months of lockdown.  

 

We remain fully operational and some staff, including our customer services and repairs planning teams, have begun returning to our offices in Tolvaddon, Exeter and Weston. However, our offices will not be open to the public or other visitors for the time being.

 

We have also expanded our crisis and hardship grants programme to support customers in financial difficulties.

 

Covid-19 - Financial impact

We have performed stress tests on our business plan to assess the impact the many challenges the pandemic will bring, including a slowdown in sales, an increase in rent arrears and wider economic impacts.  The stress testing framework also considers mitigating actions should the virus have a material impact on the business, which include the cessation of uncommitted development, ceasing non-critical asset management projects, and delaying major repair expenditure. However, as the performance update below shows, LiveWest remains in a strong financial position to respond to the challenges of the virus.

 

Liquidity at 30 September 2020

LiveWest had liquidity of £381m, consisting of available undrawn facilities of £371m, and available cash of £10m.

 

Financial and Operating Performance

Surplus for the 6 months to September 2020 is £40m (2019: £26m).  Operating costs were £6m lower in the period largely as a result of a reduced maintenance service in the first five months due to Covid-19. Surplus on Disposal of Properties includes £14m relating to homes outside our core operating area. Housing Properties (net of depreciation) have increased to £2,092m from £2,083m at March 2020. As a result of the net cash inflow, net debt has fallen to £828m from £849m.

Statement of Comprehensive Income






 

6 months

 

6 months


12 months

 

Sep-20

 

Sep-19


Mar-20

 

£m

 

£m


£m

Turnover

115

 

118


 248

Operating Costs

(78)

 

(84)


(179)

Surplus on Disposal of Properties

17

 

5


 20

Operating Surplus

54

 

39


 89

Net Interest Payable

(14)

 

(13)


(29)

Movement in Fair Value of Financial Instruments

-

 

-


 (1)

Surplus for the period

40

 

26


 59

 

 

 




Financial Indicators

 

 




 

Sep-20

 

Sep-19


Mar-20

Operating Margin on Social Housing Lettings

37%

 

33%


32%

Gross Profit Margin on Shared Ownership Sales

23%

 

23%


25%

Gross Profit Margin on Open Market Sales

22%

 

18%

 

18%

Sales as Percentage of Turnover

17%

 

22%

 

24%

 

Sales of open market (our share only, if part of a joint venture) and shared ownership homes totalled 145 units for the 6 months ended 30 September 2020 (2019: 251).

 

Sales margins remain strong. Sales and reservations to date have been resilient to the pandemic, resulting in reduced stock levels. As at 30 September 2020, we had 66 shared ownership stock units (March 2020: 130) and 8 open market stock units (our share only, if part of a joint venture) (March 2020: 3).

 

Customer satisfaction was 90.0% (31 March 2020: 84.9%). Void losses for our general needs and sheltered stock were 0.53% (March 2020: 0.64%). Rent arrears were 2.54% (March 2020: 1.93%).

 

Development

Handovers were relatively low at 190 affordable units in the 6 months ended 30 September 2020 (2019: 450) due to site closures in the first quarter of the year as a result of Covid-19. We have a contracted pipeline of 2,529 affordable homes (March 2020: 2,538).

 

Board and Executive Team Changes - 6 months to September 2020

LiveWest Homes Ltd: Phil Stevens was appointed to the Board in September 2020.

 

Phil trained as a quantity surveyor and has worked in construction and house building for over 40 years. He also has over 25 years of experience at director level. Previous positions include 10 years as Executive Director for Development and Commercial at Sovereign and director roles at Willmott Dixon and Maxim Homes and board member for The Housing Forum.

 

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 (June 2019), and G1/V1 by the Regulator of Social Housing (July 2019).

 

END

 

For more information, please contact:

Andrew Hart, Director of Corporate Finance  01392 814444

 

https://www.livewest.co.uk/about-us/investor-relations/

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 and LiveWest Capital plc (each an "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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
TSTBLBDBDDGDGGC

a d v e r t i s e m e n t