Metropolitan Funding PLC Trading Statement - Year ended 31 March 2017 (9043D)
May 02 2017 - 7:03AM
UK Regulatory
TIDM38EO
RNS Number : 9043D
Metropolitan Funding PLC
02 May 2017
Metropolitan Funding PLC
Metropolitan Housing Trust (MHT) trading update and unaudited
results for the year ended 31 March 2017
MHT, one of the UK's leading providers of affordable housing and
care and support services, announces unaudited results for the year
ended 31 March 2017.
Highlights
-- Turnover up around 11% (2016: GBP238.4m)
-- Adjusted* operating surplus up around 3% (2016: GBP93.6m)
-- Reported operating surplus up around 14% (2016: GBP84.2m)
-- Total surplus before tax up around 13% (2016: GBP71.5m)
-- 832 new homes completed (2016: 371 homes)
-- GBP190m spent on new development (2016: GBP114m)
-- More than 17,000 independence steps achieved (2016: 7,282)
* Adjusted figures are stated before a prior year GBP9.4m
exceptional charge related to pension deficit reduction scheme
obligations pursuant to the triennial valuation of the SHPS Pension
scheme.
All comparatives have been adjusted to reflect a prior year
adjustment in respect of the amortisation of shared ownership
properties which increased revenue, operating surplus and total
surplus by GBP3.5m.
Brian Johnson, Chief Executive of Metropolitan commented:
"This has been another good year of performance delivery, with
832 new homes completed and more than GBP190m spent on new
developments. Despite the introduction of the rent income deflator,
we have grown revenues by around 11% and total surplus by around
13%. We generated more than GBP37m of revenue from outright and
first tranche sales (2016: GBP12.7m), achieving an average 31%
sales margin (2016: 32%) in line with expectations. Our controlled
pipeline comprises 5,803 units (2016: 3,410) and we are spending
significant amounts, both on new developments and improvements to
our existing estate.
"Metropolitan ends 2016/17 well-placed to grow organically with
a strong pipeline, more than GBP420m (2016: GBP559m) of available
liquidity and a strong S&P credit rating. Furthermore, our
independence programme continues to exceed all its targets in
making a meaningful difference to the lives of our customers. As I
prepare to step down in July, I want to take this opportunity to
thank the team at Metropolitan for all their support and hard work
during my time as Chief Executive - and to wish them the very best
for the future."
Results overview
Turnover is around 11% higher than 2016. Lettings revenue
(excluding supported housing) fell marginally while care and
support business revenue (which includes supported housing) rose by
1% with GBP5m annually of new business won during the year. Revenue
from first tranche sales was 180% higher, with total sales surplus
(including outright sales) up around 185%. Margin on sales was 31%
(2016: 32%), in line with our expectations. Adjusted* operating
surplus is up around 3%, reflecting the improved sales performance.
Adjusted* operating margin is around 36.2% (2016: 39.2%).
During the year we dissolved the St Martin's partnership which
resulted in stock swap disposal profits of GBP12m. Redemption and
staircasing profits were down 17% year on year in line with
expectations. Net interest and related finance costs (excluding
fair value movements) were down 6% (2016: GBP49.1m) due to actions
taken last year to repay some of our more expensive debt. Total
surplus for the year is up around 13% (2016: GBP71.5m).
Housing development and investment
We delivered 832 (2016: 371) new units and invested GBP190m
(2016: GBP114m) in our development pipeline, which increased 70%
from 3,410 units last year to 5,803 at 31 March 2017. In completing
the Transfer of Engagements for Clapham Park Homes into its
Metropolitan parent, we have opened the way to funding the
remaining phases of this landmark regeneration scheme and will be
seeking full planning permission for the balance of the site later
this year.
Debt and facilities
Net debt (excluding derivative financial instruments) at 31
March 2017 is up 10% (2016: GBP868m) as our development programme
has stepped up. Available liquidity (cash and committed secured
undrawn facilities) is more than GBP420m (2016: GBP559m). Gearing
ended the year at around 59% (2016: 60%) and interest cover was
around 3.1 times (2016: 3.0 times)
The Board will update investors regarding progress on appointing
a new CEO in June and expects to announce full audited results for
the year ended 31 March 2017 in July 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
-- Net debt is borrowings (exc derivatives) plus cash and cash deposits
-- Gearing is gross debt /general reserves and grant
-- Interest cover is total surplus before interest, tax,
depreciation/amortisation, / interest costs
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
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