Metropolitan Funding PLC Metropolitan HousingTrust (MHT) Update 30 Sep 2016 (1098O)

TIDM38EO

RNS Number : 1098O

Metropolitan Funding PLC

02 November 2016

Metropolitan Funding PLC

Metropolitan Housing Trust (MHT) trading update for the six months ended 30 September 2016

MHT, one of the UK's leading providers of affordable housing and care and support services, announces a trading update for the first half of the financial year 2016/17.

First half highlights

   --    293 new homes completed and on track to complete more than 700 new homes in the full year 
   --    Operating surplus up around 10% compared to last year 
   --    Underlying operating margin maintained above 38% 
   --    More than GBP450m of available liquidity

Brian Johnson, Chief Executive of Metropolitan, commented:

"Our underlying housing business continues to perform well, in line with our expectations. Our major regeneration schemes in Barnet and Lambeth have progressed in line with our plans. Operating surplus and margins are up on the same period last year as we continue to focus on cost control, process efficiency and value for money. Metworks, our in-house repairs contractor, has had an encouraging start and we are planning its extension to London. We are on track to deliver around twice the number of new homes we did last year, and our core sales markets remain stable. We are confident in the outlook for the remainder of 2016/17 and, with more than GBP450m of available liquidity (in cash and undrawn facilities), we remain well placed to deliver on our growth strategy."

Results overview

Turnover from Housing (including supported housing) is broadly flat year-on-year with overall operating margins tracking slightly higher. Income from first tranche sales and outright sales are as expected and our products continue to sell at or above our anticipated prices. First half reported operating surplus is up around 10% compared to last year, with operating costs (excluding the exceptional pension costs in 15/16) held broadly flat as we continue our focus on cost efficiency and value for money. Operating cashflow remains strong, with more than GBP97m invested in new development projects in the first half, up 80% compared with last year. As expected, underlying net interest cost (excluding mark to market movements in derivatives) is up around 10% on last year, in line with our higher levels of gross debt, following the bond issue in September 2015.

We delivered 293 new homes in the first half, up 65% on the same period last year.

Outlook

Despite the market uncertainties triggered by the Brexit vote, our core markets continue to perform well and the full year forecast is in line with management's expectations. Liquidity remains strong.

The Board expects to announce full unaudited results for the year ended 31 March 2017 in May 2017.

Enquiries

Please contact Donald McKenzie, Head of Corporate Finance, on 0203-535-4434 or at donald.mckenzie@metropolitan.org.uk

This information for investors is also available on our website: https://www.metropolitan.org.uk/investors/

Notes

   --    Operating margin is operating surplus/turnover

Disclaimer

The information in this preliminary results announcement has been prepared by the Metropolitan Housing Trust group and is for information purposes only.

The results announcement 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.

This unaudited preliminary announcement contains certain 'forward-looking' statements reflecting, among other things, our current views on markets, activities and prospects. Actual and audited 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. Financial results quoted are unaudited. We do not undertake to update or revise such public statements as our expectations change in response to events.

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCMMMGMRZMGVZG

(END) Dow Jones Newswires

November 02, 2016 04:13 ET (08:13 GMT)

Metro Fund. 48 (LSE:38EO)
Historical Stock Chart
From Jun 2024 to Jul 2024