TIDM38LT
RNS Number : 8257H
Libra (Longhurst Group)Treasury PLC
28 November 2022
Longhurst Group consolidated Trading Update for the period
ending 30 September 2022
Longhurst Group ('LG') is today issuing its consolidated
unaudited trading update for the six months ending 30 September
2022 ('2022/23 Q2'). All statement of comprehensive income
comparatives are to LG's consolidated unaudited prior year
equivalent period being the six months ending 30 September 2022
('2021/22 Q2').
HIGHLIGHTS
2022/23 2021/22
Q2 Q2
GBPm GBPm
Turnover 81 82
Cost of sales (10) (12)
========
Operating costs (50) (49)
Operating surplus 21 21
--------
Surplus on sale of properties not developed
for sale 3 2
Interest receivable 0 0
========
Interest payable (15) (15)
========
Share of profit/(loss) from associated entity 0 0
========
Movement in fair value of investment properties 0 0
Corporation tax 0 0
Net surplus 9 8
======== ========
2022/23 2021/22
Q2 Q2
Operating surplus % 26% 26%
Net surplus % 11% 10%
SHL surplus % 30% 30%
Sales Income as % of Turnover 16% 18%
Interest Cover EBITDA% 212% 209%
Interest Cover EBITDA MRI% 187% 178%
Interest Cover SHL% 152% 146%
Gearing % 49% 47%
2022/23 2021/22
Q2 Q2
GBPm GBPm
Drawn debt (GBP000's) 718 680
Undrawn Facilities (secured) (GBP000's) 193 93
Undrawn Facilities (to be secured) (GBP000's) 0 150
Cash (GBP000's) 83 75
Commenting on the results Rob Griffiths, Deputy Chief Executive
and Chief Financial Officer said:
The group's results for the first 6 months of the financial year
demonstrate some strong performance in several key areas. In
particular our performance on first tranche sales has significantly
exceeded our business plan target and we have a healthy forward
plan of sales already agreed off plan for the remainder of the
year. Our core general needs rental business continues to perform
well with current tenant arrears at 1.97% at the end of
September.
The ongoing impact of Covid, Brexit and the war in Ukraine are
continuing to affect an already turbulent market. This has led to
rising material and labour costs which present additional
challenges to key workstreams as the Group balances delivery
timetables and value for money.
In line with the rest of the construction industry we continue
to experience some challenges linked to the availability of labour
and materials which has caused some delays on our development
programme and void works.
LG is in receipt of the letter from the Regulator of Social
Housing requesting data held regarding damp and mould within
properties. LG will be complying fully with the information request
within the designated timescales.
DEVELOPMENT PROGRAMME
We continue to progress with our development programme using a
prudent, risk-based approach, in line with our business plan
assumptions and targets. Longhurst Group were successful in their
bid for additional Homes England funding through the Affordable
Homes Programme 2021-26, where 1,850 grant funded units with start
on site before March 2026 and complete by March 2028
SHARED OWNERSHIP SALES
106 sales have completed as at Q2 achieving an average first
tranche % of 50%. Most properties are being sold 'off plan' and are
sold subject to contract with only two properties being unsold for
greater than 6 months which is sold subject to contract and likely
to be completed early into Q3.
As at 30 September 2022, LG, held 28 completed shared ownership
homes as unsold stock of which 25 were 'sold subject to contract'
and 3 'under offer'.
LG are forecasting a pipeline of further sales throughout the
next 6 months with a forecast 23% profit in the current financial
year.
REPAIRS RE-PROCUREMENT
Re procured via Competitive Dialogue (robust and detailed
multistage procurement process that involves dialoguing and
agreeing potential solutions) , with 20% of the evaluation devoted
to ESG.
Three contractors appointed from July 2022, 1 per region (East,
South, West), helping to mitigate risks and providing more local
focus and with the scope to widen and deepen the relationships as
they mature.
Call handling and diagnosis brought in house to focus on
improving customer satisfaction.
NET DEBT AND LIQUIDITY
As at 30 September 2022 LG has GBP50.0m of funding scheduled to
be drawn on a deferred basis in 2023 and a further GBP143.2m
secured undrawn loans. In the near term, our priority is on
progressing extensions to revolving credit facilities with our
relationship banks
ENVIRONMENTAL, SOCIAL, GOVERNANCE (ESG)
LG has recently adopted the Sustainable Reporting Standards for
the sector and will be reporting against this in 2023.
We've continued to invest in our homes to improve their energy
efficiency with 94 percent of our homes being EPC D and above, and
63 percent above C. All of our new homes (100 percent) have
achieved EPC level B or above.
IMPROVING LIVES STRATEGY
Our Improving Lives Strategy reaffirms LG's commitment to focus
our efforts into the two areas of health and wellbeing and economic
resilience and delivering five key objectives between now and
2025
-- Focusing on our customers and communities
-- Delivering an integrated housing, care and support offer
-- Providing the homes people want, where they're needed
-- Building and maintaining great partnerships
-- Our people and culture
KEY UPDATES
The Board of Longhurst Group Limited has approved the
appointment of Chris Tyson as its new board member, with effect
from June 2022.
Following Moody's rating action on taken on the Government of
the United Kingdom (UK's) sovereign bond rating on 21 October 2022,
Moody's changed the outlook from stable to negative for UK housing
associations.
NON-DEAL INVESTOR UPDATE
Longhurst Group, is holding its non-deal annual investor update
on Tuesday 29 November 2022.
To register your interest, please email Newbridge at
ir@newbridge.co.uk , who will coordinate joining details
This trading update contains certain forward-looking statements
about the future outlook for LG. Although the Directors believe
that these statements are based upon reasonable assumptions, any
such statements should be treated with caution as the future
outlook may be influenced by factors that could cause actual
outcomes and results to be materially different.
For further information, please contact:
Libra (Longhurst Group) Treasury PLC
Robert Griffiths
Leverett House
Gilbert Drive
Boston
Lincolnshire
PE21 7TQ
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END
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