TIDM94DD
RNS Number : 5757V
Catalyst Housing Limited
14 December 2021
Catalyst Housing Limited half year update
Catalyst Housing Limited is today issuing its consolidated
unaudited trading update for the six months ending 30 September
2021 (H1 2021/22).
Following merger with Rosebery Housing Association, the number
of homes in management has increased from approximately 34,000 to
37,000. Merger is reflected in year to date figures.
Catalyst has retained its G1/V2 rating from the Regulator of
Social Housing and S&P has affirmed that the current A- rating
has been retained. S&P has noted that this is unlikely to
change due to merger with Peabody (anticipated 1 April 2022).
Performance highlights
Highlights H1 H1 2020/2021
2021/22
-------------------------- --------- -------------
Turnover GBPms 141 144
Operating surplus GBPms 43 38
Operating margin % 31% 22%
Social Housing Operating
Margin % 31% 35%
EBITDA MRI interest
cover % 131% 172%
Gearing % 42% 44%
Investment in existing
properties GBPms 15 13
Voids % 1.57% 1.54%
Arrears % 5.61% 5.62%
Commenting on the results, Tim Jennings, Executive Director
Finance said:
"Against the ongoing backdrop of the pandemic we have continued
to adapt to new ways of working and to develop our business models.
Using our customers' feedback we've redesigned the way we deliver
customer experience to focus on a truly local service. We've
completed a pan-business IT integration project, bringing together
all our IT systems. Through our Build Back Better programme we are
embracing agile and flexible ways of working that we now all
consider normal, ensuring that we can deliver efficiencies in the
future.
Our unaudited overall position shows Catalyst delivering in line
with budget at the half year, and our performance metrics are at or
better than the year ended 31 March 2021. In the first half of last
year we saw reductions in repairs, maintenance and capital works in
response to the first lockdown, however this year saw a return
closer to normal levels, despite the on-going restrictions in the
earlier months. Consequently our social housing operating margins
and EBITDA MRI interest cover have reduced compared to the first
half of last year.
These results include Rosebery Housing Association, which became
a subsidiary on 1 April 2021. A significant gain arising from the
net gift of assets of GBP125m has been included in the results for
the period.
There has been less impact on the delivery of key services this
year due to the pandemic, with the net surplus from our core
landlord services delivering to budget.
Our strong cashflows enable us to take advantage of market
conditions and during the period to date we cancelled GBP65 million
notional value of our stand alone derivatives, thereby reducing our
future interest costs as we benefit from the current lower variable
rates of interest.
Decent homes and building safety
Building safety and decent homes remains a critical focus for
the group. We have been able to catch up on repairs and maintenance
delayed due to Covid-19, albeit some non-critical planned capital
works have been delayed from the first half to the second half.
Catalyst received a further GBP22 million in grant enabling us
to accelerate fire remediation works across our stock. All
contracts have been let, all ACM cladding has been removed, and we
have brought forward our overall programme of works. We continue to
assume leaseholders will not be asked to contribute to works on the
blocks over the 18 metres height set by the Government.
Property sales
The sale of homes, market sale and first tranche shared
ownership, are just 4% below budget volumes in the first half. The
mix in has seen shared ownership sales over perform, with market
sales below, this seeing revenues slightly lower, but overall
property sales margins are in line with budget. Asset sales,
primarily the customer driven sales from staircasing and equity
loan redemptions continue to perform strongly.
ESG
We have continued to build on our sustainability commitments and
aspirations. Following our Ritterwald Certificate in Sustainable
Housing, we have published our first ESG Report and a Sustainable
Finance Framework (links below), both of which align our activity
to the UN Sustainable Development Goals. Our ESG strategic working
group continues to refine and develop our vision for the future.
During COP26 we launched a series of webinars for employees
provided by a range of external experts to make sure we are fully
engaged with the wider debate.
https://www.chg.org.uk/wp-content/uploads/2021/07/Sustainable-Finance-Framework-final-version.pdf
https://www.chg.org.uk/wp-content/uploads/2021/09/210902_ESG-Report-2021_final-v2-2.pdf
Merger with Peabody
On 30 July 2021 Peabody and Catalyst Housing announced proposals
to join together to create a better, locally focussed organisation
which would deliver significant benefits for residents, providing
the scope to invest and innovate more in services, homes,
communities, technology and people. The process to complete this by
1 April 2022, with Catalyst Housing joining Peabody Group as a
subsidiary, remains on track.
Sarah Thomas took over as interim Chief Executive Officer from 1
October 2021 following Ian McDermott's move to Peabody Chief
Executive on secondment.
Statement of Comprehensive Income
GBP millions YTD September 2021 2020/21
Turnover 141.2 298.2
Cost of sales (28.2) (94.4)
Operating costs (82.3) (149.2)
Surplus on disposal
of fixed assets 10.9 12.9
Share of joint venture 1.3 -
operating results
Operating surplus 42.9 67.5
Gift arising from Gift 125.4 -
of Net Assets
Net interest payable (20.5) (43.3)
Movement in fair value
of investment properties - (0.1)
Movement in fair value
of derivative financial
instruments 1.9 10.1
Surplus for the year 149.7 34.2
Statement of Financial Position
GBP millions YTD September March 2021
2021
Housing properties 3,310 3,069
Other fixed assets 46 45
Intangible assets 2 2
Investments 112 115
Stock 126 128
Cash and bank 126 160
Debtors 26 34
Current creditors (88) (135)
Total Assets less current liabilities 3,660 3,418
Long term liabilities (1,851) (1,735)
Derivative Financial instruments (58) (82)
Reserves (1,751) (1,601)
Total long term creditors and
reserves (3,660) (3,418)
Ends
This update may contain certain forward-looking statements
reflecting, among other things, our current views on markets,
activities and prospects. Actual outcomes may differ materially.
Such statements are a correct reflection of our views only on the
publication date and no representation or warranty is given in
relation to them, including as to their completeness or accuracy or
the basis on which they were prepared.
For further information, please contact:
Michaela Booth 07834 106257
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END
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