A2Dominion Housing Group Ltd A2Dominion Housing Group's Half Yearly performance
28 October 2022 - 8:30PM
RNS Non-Regulatory
TIDM54XE
A2Dominion Housing Group Ltd
28 October 2022
A2Dominion Housing Group's Half Yearly Performance Update
covering the period to 30 September 2022
A2Dominion Housing Group announces the following update for the
period to 30 September 2022.
Financial Performance
The Group's performance for the first six months to 30 September
2022, shows a lower surplus compared to last year. Our results have
been impacted by current market conditions, particularly from
higher energy costs and the rising rate of inflation. Despite this,
the Group still continues to deliver a healthy surplus.
6 Months 6 Months
to to
30-Sep-22 30-Sep-21
GBPm GBPm
Turnover 192.5 177.2
Cost of Sales (39.5) (37.4)
Operating Costs (116.8) (99.4)
Share of Joint Venture Surplus 0.4 1.7
Surplus on Sale of Fixed Assets 7.9 8.0
Operating Surplus 44.9 50.1
Operating Margin 23.3% 28.3%
Interest (33.8) (31.2)
Surplus for the Period 10.7 18.9
Turnover has increased year on year, due to a 7.2% increase in
rental income to GBP127.6m (2021: GBP119.0m ) and an increase in
housing for sale income of GBP48.8m (2021: GBP44.5m). At 23.3%, the
operating margin is lower than the prior year. This is due to
inflationary pressures which have increased our operating costs
(particularly utility costs), thereby eroding the margin. The
remaining six months of the year will continue to be challenging,
as we manage these cost pressures and supply chain struggles, which
have both been heightened by the uncertain economic
environment.
Unaudited Consolidated Statement of Financial
Position
30-Sep-22 30-Sep-21
GBPm GBPm
Other Fixed Assets and Investments 3,607.4 3,601.7
Current Assets 322.0 422.4
Total Creditors including loans and borrowings (2,892.6) (3,049.3)
Total Reserves 1,036.8 974.8
The Group's fixed asset base has increased year on year as we
continue to invest in our existing housing stock and develop new
homes. Current assets have decreased from the previous year in line
with our level of work in progress, which has been more than
matched with a drop in total creditors. This is largely due to the
early part-repayment of a GBP75m retail bond in April. Total
reserves now exceed GBP1 billion and show an increase compared to
the previous year, reflecting our strong financial performance
during the period from 1 October 2021 to 31 March 2022.
Operational Performance
Customer : As in previous years, the Group has continued to
produce a good operational performance maintaining a combined high
level of customer satisfaction (reflecting complaints handling, our
repairs service and the customer service centre services) of 81.6%,
which is just below our 82.0% target. Our customer effort measure
was on target with the score at 4.0 and our 'would you recommend
the Group' for our new homes measure was at 92.2%, exceeding our
target of 92%. Median repair days stand at 12 days ahead of our
target of 15 days. The Group is fully committed to providing our
communities with services they need, and this is demonstrated with
our social value delivered standing at GBP2.9m, with a full year
target of GBP9.0m. Our arrears levels stand at 4.2%, which is
beyond our target of 3.4%. However this arears level remains in the
upper quartile of our peer group. The Group continues to focus on
supporting and signposting customers to the help available to them,
to enable them to continue to manage their financial obligations,
particularly given the cost pressures on households today.
Development: The Group's delivery from its development pipeline
continues to be slower than anticipated. This is largely due to the
skills and material shortages hindering the industry's capacity to
return to pre-pandemic levels. Despite these issues, during this
first six months we have successfully handed over 390 units of
which 81.0% (316 units) are for our affordable tenures and are
forecasting a further 517 units by 31 March 2023. The current
development pipeline from 2023/24 onwards totals 2,919 units.
Treasury: As at 30 September, the Group's loan facilities and
borrowings are summarised as follows:
Arranged Drawn
GBPm GBPm
Revolving Credit Facilities 520.3 35.0
Term Loans 533.1 533.1
Capital Market Issues (including 'Club'
bonds) 1,004.3 1,004.3
Total 2,057.7 1,572.4
In addition to the GBP485.3m of undrawn facilities, the Group
had GBP23.6m of cash.
Over the next two years, committed loan facilities will reduce
by GBP165.0m through scheduled loan facility amortisation and as a
consequence of a retail bond maturity in October 2022.
As at 30 September 2022, the Group's overall fixed rate ratio
was 94.8% (September 2021: 90.3%) and the average borrowing rate is
4.46% (September 2021: 4.18%).
Further Information
An Investor Update presentation will be available on our website
link from 3 November 2022:
https://www.a2dominiongroup.co.uk/content/doclib/94.pdf
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