PARADIGM HOUSING GROUP
LIMITED
TRADING
UPDATE
Six months ending 30
September 2024
The following trading update compares
Paradigm Housing Group Limited's ("the Group") unaudited accounts
for the six months ending 30 September 2024 with the unaudited
equivalent position for the six months ending 30 September
2023.
Overview
·
The Group has seen an increase of 5.3% in
operating surplus to £31.9m (30 September 2023: £30.3m).
·
Income from rents has increased due to the annual
formula uplift of 7.7% along with rents from new homes.
·
Operating costs have increased to reflect
inflation and new homes. The overall operating margin has increased
from 40.7% to 41.4%.
·
77 shared ownership homes have been sold in the
six months to 30 September 2024 (30 September 2023: 112 homes)
generating a margin of 23.8% (30 September 2023: 25.4%).
·
Sales of existing homes and staircasing has
increased resulting in a £2.1m surplus (30 September 2023:
£1.9m).
·
The Group continues to invest, spending £24.5m in
the first six months of the year investing in and maintaining our
existing homes (30 September 2023: £20.5m) and £45.7m on completing
new homes (30 September 2023: £57.4m). 160 new homes have
been delivered (30 September 2023: 229) for rent or shared
ownership.
Nicola Ewen, Chief Financial Officer
said: "We continue to deliver our corporate plan
objectives despite the challenging economic backdrop. Our operating
margin of 41.4% reflects our financial strength. Our rental
income remains stable, and we continue to invest in our existing
homes and new homes in our area of operation".
Statement of Comprehensive Income
|
£'m
|
Six months
ending
30 September
2024
|
Six months
ending
30 September
2023
|
Movement
|
|
Turnover - rent, service charge &
other income
|
64.7
|
57.6
|
7.1
|
|
Turnover - 1st tranche
sales
|
12.4
|
16.8
|
(4.4)
|
|
Total turnover
|
77.1
|
74.4
|
2.7
|
|
Operating costs
|
(38.1)
|
(33.6)
|
(4.5)
|
|
Cost of 1st tranche sales
|
(9.4)
|
(12.5)
|
3.1
|
|
Total operating costs
|
(47.5)
|
(46.1)
|
(1.4)
|
|
Surplus on disposal of fixed
assets
|
2.1
|
1.9
|
0.2
|
|
Gains from jointly controlled
operations
|
0.2
|
0.1
|
0.1
|
|
Operating surplus
|
31.9
|
30.3
|
1.6
|
|
Net interest payable
|
(17.6)
|
(15.8)
|
(1.8)
|
|
Movement in fair value of
investments
|
(0.1)
|
(0.4)
|
0.3
|
|
Surplus to 30 September
|
14.2
|
14.1
|
0.1
|
Trading update
Turnover from rents and other income
increased by 12.3% to £64.7m.
Turnover from 1st tranche property
sales decreased from £16.8m to £12.4m as the number of homes sold
decreased from 112 to 77 due to lower shared ownership practical
completions during the six months ending 30 September 2024 compared
to equivalent position for the six months ending 30 September
2023.
Operating costs have increased by
13.4% to £38.1m driven by inflation and increased activity. Our
operating cost per property has increased by 3.4% to £4,370 (30
September 2023: £4,225)
The cost of 1st tranche sales
decreased by 24.8% to £9.4m as a result of a reduction in the
number of properties sold. Our overall margin on 1st tranche sales
for the six month ending 30 September is 23.8% (30 September 2023:
25.3%)
The number of existing homes sold and
tenants purchasing additional shares (staircasing) has increased
resulting in a 10.5% increase in the surplus on sale of fixed
assets from £1.9m to £2.1m.
Interest costs have increased by
11.4% to £17.6m as a result of an increase our debt to fund
development following the issuance of a new bond in April
2024.
Statement of Financial Position
|
£'m
|
As at
30 September
2024
|
As at
30 September
2023
|
Movement
|
|
Housing properties
|
1,660.3
|
1,562.1
|
98.2
|
|
Other assets
|
13.7
|
12.5
|
1.2
|
|
Investments
|
21.7
|
21.2
|
0.5
|
|
Net current assets
|
11.9
|
28.3
|
(16.4)
|
|
Total assets less current liabilities
|
1,707.6
|
1,624.1
|
83.5
|
|
Loans due in more than one
year
|
949.1
|
882.1
|
67.0
|
|
Unamortised grant
liability
|
42.7
|
42.3
|
0.4
|
|
Other long-term
liabilities
|
8.9
|
12.0
|
(3.1)
|
|
Capital and reserves
|
706.9
|
687.7
|
19.2
|
|
Total Funding
|
1,707.6
|
1,624.1
|
83.5
|
Investment & Debt Analysis
Housing properties have increased by
£98.2m to £1,660.3m as at 30 September 2024. This is due to the
£92.4m spent on building new homes, £1.1m for stock acquisition and
£16.4m of property improvements over the 12 month period, offset by
depreciation and existing home disposals.
Group debt including loans due in
less than one year at 30 September 2024 was £950.6m (30 September
2023: £881.4m). A £150m bond was issued in April 2024 with a
resultant net repayment on our revolving credit facility of £122m
in the six months to the end of September 2024. Undrawn facilities
stand at £252.0m (30 September 2023: £100.0m).
We continue to build new homes with
160 homes across all tenures completed in the six months to 30
September 2024 (30 September 2023: 229).
Key
performance statistics
|
|
As at
30 September
2024
|
As at
30 September
2023
|
|
Surplus as % of turnover
|
18.4%
|
18.9%
|
|
Operating Margin (overall)
|
41.4%
|
40.7%
|
|
Operating Margin (excluding
sales)
|
41.2%
|
41.7%
|
|
Rent loss % (voids as % of rent and
service charge receivable)
|
0.69%
|
0.95%
|
|
Bad debt % (Bad debt charge as % of
rent and service charge receivable)
|
0.75%
|
0.59%
|
|
Rent arrears (gross arrears as % of
rent and service charges receivable)
|
2.99%
|
3.09%
|
|
Interest cover (operating surplus
before interest payable, depreciation and amortisation as % of
interest payable)
|
155.1%
|
162.3%
|
|
Gearing (total loans less cash as %
of housing properties at cost)
|
56.4%
|
55.4%
|
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