TIDM38LT
RNS Number : 1560M
Libra (Longhurst Group)Treasury PLC
25 April 2018
Longhurst Group Trading Update for the period ending 31 December
2017
Longhurst Group ("LG") is today issuing its consolidated
unaudited trading update for the nine months ended 31 December
2017.
The Statement of Comprehensive Income Comparatives (SOCI) are to
LG's consolidated unaudited results for the nine months ending 31
December 2016. These results do not include the results of Axiom
Housing Association Limted ("Axiom") who joined the Group on 07
July 2017. Axiom is to be accounted for as an acquisition for the
purposes of the 2017/18 Financial Statements.
Highlights
-- Total turnover for the period was GBP108.8m, an increase of
29.3% on the prior year. The increase is due to the results of
Axiom being included from July to December and the increase in
turnover from property sales.
-- Turnover from Property Sales was GBP23.5m up from GBP9.9m in
2016 with a margin of 21.7% down from a margin of 34.5% in
2016.
-- Net operating margin was 31.02% down from 36.16% in 2016.
-- Negative goodwill written off following the acquisition of Axiom was GBP5.2m.
-- At 31 March 2018 LG's void loss was 0.90% and arrears performance was 2.32%
Commenting on the results to the 31 December, Robert Griffiths
CFO and Deputy CEO
"LG's operating surplus for the period to the end of December
was just under GBP2m better than budget at GBP33.76m.
The margin on low cost home ownership ("LCHO") sales and market
sales was 21.7% to 31 December 2017, down from 34.5% for the same
period in 2016. The lower net sales margin reflects the change in
mix in LG's sales programme with less section 106 LCHO sales in
2017 as a proportion of total sales; section 106 LCHO sales
traditionally achieve a higher margin of up to 30%.
Excluding the write off, of negative goodwill, LG now expects
the surplus for the year after tax to be just over GBP20m against a
budget of GBP19.8m.
Housing Completions
LG has completed 400 new homes in the nine months to 31 December
2017 and completed 518 in the year to 31 March 2018.
Two stock rationalisation acquisitions have also completed since
the end of the 3(rd) quarter with 144 properties purchased from PA
Housing on 26 March 2018 and 308 from Hyde Housing on 16 April
2018.
Future Development
A further 1330 units are expected to be completed by 2021/22
from current committed projects and uncommitted identified sites
which are not yet in contract.
9 months 9 months
to to
31/12/2016 31/12/2017 Movement
GBP'000 GBP'000 GBP'000
Statement of Comprehensive
Income
Turnover (excluding property
sales) 74,292 85,264 10,972 14.8%
Turnover from property
sales 9,890 23,563 13,673 138.3%
Total turnover 84,182 108,827 24,645 29.3%
=================== =================== ==================
Cost of sales (7,350) (19,358) (12,008) 163.4%
Operating costs (46,391) (55,710) (9,319) 20.1%
Operating surplus 30,441 33,759 3,318 10.9%
=================== =================== ==================
Operating margin 36.16% 31.02%
Surplus on sale of properties 643 719 76 11.8%
not developed for outright
sale
Negative goodwill written
off - 5,225 5,225 100.0%
Movement in investment properties - - - 0.00%
Interest receivable and other
income 78 75 (3) -3.8%
Interest payable and similar
charges (18,925) (19,224) (299) 1.6%
Actuarial gains/losses in
respect - - - 0.00%
of pension schemes
Tax payable (115) (376) (261) 226.6%
Surplus for the period 12,122 20,178 8,056 66.5%
=================== =================== ==================
31/03/2017 31/12/2017
Statement of Financial Position GBP'000 GBP'000
Fixed assets
Housing properties 912,739 1,045,751
Investment properties 5,449 5,449
Other fixed assets 14,366 17,628
932,554 1,068,827
================= =================
Current assets
Stock 26,214 18,817
Trade and other debtors 3,562 2,283
Cash and cash equivalents 10,122 16,320
39,898 37,420
================= =================
Creditors: amounts falling due within
one year (22,006) (26,367)
Net current assets/(liabilities) 17,892 11,052
================= =================
Total assets less current liabilities 950,446 1,079,880
================= =================
Creditors: amounts falling due after
one year
Loans (497,766) (555,259)
SHPS pension agreement plan (10,610) (13,430)
Deferred capital grant (228,011) (273,692)
(736,387) (842,381)
================= =================
Pension provision (3,505) (3,505)
Total net assets 210,554 233,994
================= =================
Capital and reserves
Revenue reserve 102,487 122,665
Revaluation reserve 139,502 139,502
Cashflow hedge reserve (32,435) (29,173)
Designated reserves 1,000 1,000
210,554 233,994
================= =================
For Further information, please contact:
Rob Griffiths, Chief Financial Officer & Deputy Chief
Executive
Kate Wood, Director of Corporate Finance
For media enquiries, please contact:
Jon Reeves, Press and PR Manager
Longhurst Group 0345 30 90 700
This information is provided by RNS
The company news service from the London Stock Exchange
END
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