Optivo Finance PLC Optivo Trading update for 6 months to 30 09 2018 (7838G)
08 November 2018 - 9:55PM
UK Regulatory
TIDM20SY
RNS Number : 7838G
Optivo Finance PLC
08 November 2018
OPTIVO TRADING UPDATE
This is an unaudited trading update for Optivo for the six
months ended 30 September 2018.
Highlights
Comparators in this trading update are the unaudited results for
Optivo for the first half of the previous financial year ("H1
2017/18").
-- Turnover GBP161m (H1 2017/18 GBP159m)
-- Operating surplus GBP59m (H1 2017/18 GBP64m)
-- Surplus before tax GBP38m (H1 2017/18 7 GBP44m)
-- Operating margin 34% (H1 2017/18 7 31%)
-- Net interest costs GBP21m (H1 2017/18 GBP20m)
The Regulator of Social Housing confirmed Optivo's V1/G1 rating,
the highest possible, following an in-depth assessment earlier this
year. Optivo was selected to join the new GBP20bn London
Development Panel in August, which is being used to accelerate
housebuilding on public sites. We were also named in the Budget as
a strategic partner under the Affordable Homes Programme and will
receive an additional GBP49.9m to build 1,000 homes outside London
by March 2022. Moody's have confirmed our rating is unchanged at A2
stable.
Operations
At the end of September 2018 our strategic KPI performance were
as follows:
-- A net promoter score of 65 for resident satisfaction - 2018/19 target 56
-- We helped 486 people into jobs and training - 2018/19 whole year target 870
-- 47% of residents are using our services online - 2018/19 target 45%
-- 82% of staff feel proud to work for Optivo - 2018/19 target 75%
-- 77% of staff say Optivo is a great employer - 2018/19 target 75%
For our core business of General Needs, Supported Housing and
Housing for Older People operational income KPIs for Optivo for the
year to date were as follows:
September 2018 March 2018
Total rent arrears of annual GBP10.2m, 4.86% GBP8.2m, 3.96%
rent debit
---------------- ---------------
Rent arrears of 0 to 4 weeks GBP3.4m, 1.62% GBP3.5m, 1.68%
---------------- ---------------
Rent arrears of 5 to 6 weeks 0.9m, 0.43% GBP0.7m, 0.32%
---------------- ---------------
Rent arrears of 7 to 12 weeks GBP1.9m, 0.93% GBP1.5m, 0.71%
---------------- ---------------
Rent arrears of 13 weeks or GBP3.9m, 1.88% GBP2.6m, 1.25%
more
---------------- ---------------
Universal Credit cases increased to 3,472, up 115% on September
2017. Arrears for these tenants are at 12.88%, an improvement from
13.15% when compared to September 2017. Additional staff resources
are being applied to work with residents to manage the arrears
position. In the half year to 30 September 2018 the average time to
re-let vacant properties, excluding voids for major works, was 38.4
days. At 31 March 2018 the average for the financial year to date
was 26.5 days. The increase reflects decisions to hold voids in
certain sites while re-investment options appraisals are
undertaken.
Out-turn for the half year ended September 2018 was in line with
expectations and in accordance with Optivo's financial plan.
Investment and Sales
In the six months to 30 September we started 274 new homes and
completed 259. Comparable figures for the six months to 31 March
were 327 starts and 274 completions. At 30 September we were in
contract to deliver 2,180 homes (March 2018: 2,054) across 50
sites, with remaining capital commitments on these sites of
GBP379.7m (March 2018: GBP363m). We had 72 unsold Shared Ownership
1(st) tranche properties (March 2018: 65), and no open market sale
unsold units (March 2018: 0).
Liquidity
At the end of the half year we had available undrawn facilities
of GBP544m (March 2018: GBP606m) and GBP84m (March 2018: GBP82m)
unencumbered cash and deposits available. Our outstanding net debt
balance was GBP1,063m (March 2018: GBP1,007m).
Unaudited Financial Results
Unaudited financial results for H1 2018/19 are below, together
with comparatives for H1 2017/18 and the full year 2017/18.
Statement of Consolidated Income H1 2018/19 H 1 2017/18 2017/18
(GBPm) (GBPm)
------------------------------------- ----------- ------------ ---------
Turnover 161 159 318
Cost of Sales (7) (9) (22)
Operating Expenditure (100) (100) (199)
Surplus on disposal of fixed
assets 5 14 20
------------------------------------- ----------- ------------ ---------
Operating Surplus 59 64 117
------------------------------------- ----------- ------------ ---------
Surplus on commercial property
disposals - - 4
Interest receivable - 1 1
Interest and financing costs (21) (21) (42)
Fair value movements - investment
property - - 11
------------------------------------- ----------- ------------ ---------
Surplus before taxation 38 44 91
------------------------------------- ----------- ------------ ---------
Hedge reserve write off - - (140)
------------------------------------- ----------- ------------ ---------
Surplus / (Deficit) before taxation 38 - (51)
------------------------------------- ----------- ------------ ---------
Notes:
-- The half year figures exclude movements in the fair value of
investment properties, unhedged instruments and pension
adjustments. These items are reviewed at year end.
Next Update
We will publish a full year financial update after 31 March
2019.
Notes
Optivo is a charitable housing association that was formed on 22
May 2017 when AmicusHorizon Ltd amalgamated with Viridian Housing.
It currently manages 44,000 homes across London, the South East and
the Midlands with a target to achieve 1,500 new homes starts by
2020-21.
Further information on Optivo is available on our website
https://www.optivo.org.uk/investors.aspx
Contact: Tim Luckhurst, Head of Treasury on 020 8726 8713 or
tim.luckhurst@optivo.org.uk
DISCLAIMER
This update contains certain "forward-looking" statements
reflecting, among other things, our current views on markets,
activities and prospects. Actual outcomes may differ materially.
Such statements are a correct reflection of our views only on the
publication date and no representation or warranty is given in
relation to them, including as to their completeness or accuracy or
the basis on which they were prepared. Financial results quoted are
unaudited. No reliance should be placed on the information
contained within this update. We do not undertake to update or
revise such public statements as our expectations change in
response to events. This update is neither recommendation nor
advice. This is not an offer or solicitation to buy or sell any
securities.
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 rns@lseg.com or visit www.rns.com.
END
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