TIDM51GC
RNS Number : 9032L
Affinity Sutton Capital Markets PLC
24 July 2017
QUARTER 1 PERFORMANCE UPDATE
Clarion Housing Group will be publishing its Annual Report for
the year ended 31 March 2017 on 31 July 2017. This update covers
performance for the period from 1 April to 30 June 2017, the first
quarter of the financial year ending 31 March 2018.
Fire Safety
Since the tragedy at Grenfell Tower on 14 June fire safety has
been the core focus of the Board and Management. We have been
reviewing our high rise stock, taking a broad approach to ensure a
wide-ranging assessment of potential risk. The information we are
gathering will inform our response - we are well placed to ensure
that this is both comprehensive and preventive in nature. Above
all, the safety of our residents will remain at the heart of
Clarion Housing Group.
Our latest statement can be seen here:
https://otp.tools.investis.com/clients/uk/clarion_house_group/rns/regulatory-story.aspx?cid=2143&newsid=891946
We expect to make another statement by the end of the month.
Financial performance
The management accounts for the first quarter (Q1) 2017/18 show
robust performance with a net surplus of GBP54 million (Q4 2016/17:
GBP34 million). This represents a significant improvement versus
the previous quarter largely due to non-recurrence of one-time
costs incurred in Q4 and lower underlying operating costs. The
Statement of Financial Position (formerly the Balance Sheet) showed
Housing Fixed Assets of GBP6.55 billion, slightly up from GBP6.50
billion at 31 March 2017 reflecting an increase in housing
stock.
Drawn debt as at 30 June 2017 was GBP3.34 billion, up from
GBP3.28 billion at 31 March 2017. Liquidity stood at GBP0.88
billion (down from GBP0.98 billion) and committed and fully secured
loan facilities were GBP4.07 billion (down from GBP4.10 billion).
New funding was invested in housing development.
Our internal matrix of financial "Golden Rules" were all met at
the end of Q1.
Operational performance
The Group has seen a strong operational performance over the
quarter. Occupancy, which remains a continued focus, is high at
98.48% whilst tenant arrears is down to 3.8%. The call centres
across the Group have performed well and exceeded their targets
during the quarter, with 85.9% of calls answered within 30 seconds.
All of the Group's service level improvement targets continue to
have been met or exceeded.
Overall customer satisfaction was under our internal long term
target of 80% at 76.7%. Whilst this level will take time to achieve
we continue to see evidence of progress. Customer satisfaction with
last repair was comfortably above target at 88.5%. Repairs
completed on time and emergency repairs completed on time were both
above target at 96.9% and 98.3% respectively. Repair appointments
kept was marginally below target at 89.9%.
Over the quarter the Group generated sales income of GBP16
million (Q4 2016/17: GBP27 million) from 87 sales (71 of which were
shared ownership). Total sales margin on shared ownership and
private sales for the quarter was excellent at 41% (Q4 2016/17:
46%). This performance is in line with expectations. A total of 240
units were held in stock, most of which were either reserved or had
just been completed prior to the quarter end and have subsequently
been reserved. Quality remains good - customer satisfaction with
new build products and services was high at 91.7% whilst average
defects per property was extremely low at 0.7.
This quarter we have made 478 starts and have seen 336
completions; total capital investment in new homes was GBP102
million. Internal approval was obtained for a further 1,131 homes
bringing the current pipeline to circa 9,100 units.
We are entering a strategic partnership with the Mayor of London
to deliver at least 5,000 high quality, new affordable homes in the
capital by 2021. City Hall is providing the Group with GBP168
million of grant funding to support the programme.
Integration
Good progress continues and seven of the nine separate housing
associations in the former Circle Housing Group have now
successfully transferred engagements to Circle 33. Mole Valley
transferred on 9 May 2017, followed by Merton Priory Homes on 1
June 2017.
General Election 2017 and Outlook
We haven't seen a significant change in our operating
environment following the 8 June 2017 General Election, although
the Conservative party's 'confidence and supply' deal with the
Democratic Unionist Party could mean that the law making process is
slowed.
We welcomed the appointment of the new housing minister Alok
Sharma MP and look forward to working in partnership with him in
our shared aim to combat the country's housing shortage.
There was little on housing in the Queen's Speech. However, some
non-legislative measures were announced including reforms to
increase the transparency of land ownership and rights for
leaseholders - with a consultation in due course. Plans to help
home buyers by streamlining the home buying process to be cheaper
and faster were also mentioned.
We remain convinced that the Group has the capacity to deliver
its plans in a full range of scenarios and are therefore confident
about its future prospects.
ENDS
For more information, please contact:
Gareth Francis, director of treasury and corporate finance,
Clarion Housing Group - 0778 7555655 /
gareth.francis@clarionhg.com
Lucy Pond, communications manager, Clarion Housing Group - 0771
8269023 / lucy.pond@clarionhg.com
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.
www.clarionhg.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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