TIDM83BM
RNS Number : 6695J
Yarlington Treasury Services PLC
06 December 2018
Yarlington Housing Group Trading Update for the period ended 30
September 2018
Yarlington Housing Group (YHG) issues its unaudited group
trading update for the period ending 30 September 2018. All
comparatives are to Yarlington Housing Group's audited group
Financial Statements for the year ended 31 March 2018.
Financial and Operating Performance
Operating surplus for the 6 months to September 2018 is GBP11m,
against GBP18m for the year to March 2018. Housing Properties
(after adjusting for depreciation) have increased to GBP526m from
GBP531m. Net debt has decreased from GBP237m to GBP230m.
Statement of Comprehensive Income
6 Months
to Year to
Sep 2018 Mar 2018
GBPm GBPm
Turnover 34 57
Cost of Sales (6) (3)
Operating Expenditure (17) (36)
Operating Surplus 11 18
------------------------------------- -------- --------
Net Interest Payable (3) (7)
Gain on disposal of PPE 1 4
Surplus for the Period 9 15
------------------------------------- -------- --------
Financial Indicators
Sep 2018 Mar 2018
Operating Margin on Social Housing
Lettings 39% 39%
Net Margin on Shared Ownership Sales 19% 28%
Net margin on Outright Sales 23% 0%
Void losses for our general needs and sheltered stock were 0.66%
(March 2018: 0.52%). Rent arrears were 1.82% (March 2018: 1.76%).
Void losses are within acceptable tolerances but we are reviewing
our re-let and void maintenance processes to ensure efficiency and
effectiveness. We continue to see good rental income performance
despite the impact of our customers transitioning to Universal
Credit which has caused others in the sector to experience higher
levels of rent arrears.
Liquidity
YHG has liquidity of GBP106m, consisting of available undrawn
facilities of GBP49m, and available cash of GBP57m.
Development
We completed 66 affordable units in the period (144 for the 12
months to March 2018). We have a contracted pipeline of 212 homes
(March 2018: 111).
Yarlington Homes Ltd has completed the sale of 12 of the 19
plots on its site at Burnham-on-Sea, the remaining 7 plots are
reserved and the sales are expected to be completed by the end of
2018. This site is expected to generate profits of GBP1m which will
be used to increase our programme of social/affordable
developments.
Board and Executive Team Changes
Chief Executive, Gary Orr, left the 12(th) October 2018 to
become the CEO of Radian Group Ltd. Caroline Moore previously
Executive Director of Finance, Governance and Risk has been
appointed Managing Director in the interim and Kathryn Price has
been appointed Interim Finance Director, Kathryn is an experienced
FD, and has many years' experience of the housing sector.
Lindy Morgan, has agreed to continue as Chair for a further 12
months, Lindy was due to resign from the Board on the 12(th)
September 2018 upon reaching 9 years service as a Non-Executive
Director of YHG, our constitution allows for an extension beyond 9
years in exceptional circumstances.
William John Coutts resigned from the Board on the 12(th)
September 2018 upon reaching 9 years service as a Non-Executive
Director of YHG.
Yarlington Housing Group Credit Rating
YHG has a Moody's A3 (stable) credit rating. An A3 (stable)
rating is assigned to Yarlington Treasury Services plc's
GBP120,000,000 secured bonds due 2057. Of the Bond Issue, GBP60m
secured bonds have been retained by Yarlington Treasury Services
for future sale and GBP60m secured bonds have been allocated to
Pension Insurance Corporation plc over a deferred profile.
END
For more information, please contact:
Kathryn Price, Interim Finance Director 01935 404585
https://www.yhg.co.uk/
Disclaimer
The information contained herein (the "Trading Update") has been
prepared by Yarlington Housing Group (the "Parent") and its
subsidiaries (the "Group"), including Yarlington Treasury Services
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.
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
IR BQLFBVLFBFBD
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