Paragon Treasury PLC Trading update: period ended 30 September 2019 (4547S)
November 08 2019 - 7:00AM
UK Regulatory
TIDM60VT
RNS Number : 4547S
Paragon Treasury PLC
08 November 2019
Paragon Treasury Plc
Paragon Asra Housing Limited ('PA Housing') trading update and
unaudited financial results for the period ended 30 September
2019
PA Housing, the parent company of Paragon Treasury Plc and a
Registered Provider owning and managing over 23,000 homes in the
East Midlands, London and Surrey, announces its trading highlights
and unaudited summary financial results for the first half of the
2019/20 financial year.
Over the period, PA Housing has delivered an operating surplus
of GBP27.7m from turnover of GBP74.9m, equating to an operating
margin of 37 per cent. The net surplus after interest and other
adjustments is GBP13.7m. Total available liquidity is at GBP238m.
Overall results on core lettings operations are in line with budget
expectations. New build shared ownership sales completions are
behind budget, primarily reflecting a timing variance driven by
delays in completion of the build phase on some development
projects. As at the end of September only 16 homes were unsold and
available.
Key financial and operational highlights include:
-- Successful launch of our expanded 'Team Purple' housing
services model, with 30 new employees recruited and early positive
impacts on customer engagement and satisfaction
-- Capital investment in our existing stock forecast at GBP18m,
including substantial programmes which will improve the energy
efficiency of our homes
-- Investment in new homes forecast at GBP180m, with 750 homes
on site and a target to complete 400 homes in the year (all of
which are core social housing properties)
-- Receipt of GBP25m additional grant funding from the GLA in support of our new build programme
-- Strong margins achieved on new build shared ownership sales
to date, with demand in our core operational areas remaining solid
and sales values holding up well
-- Securing GBP2m of additional income for residents through our tenancy sustainment work
-- A surplus of GBP1.6m from shared ownership staircasing
transactions, some GBP0.7m ahead of budget
-- Weighted average cost of capital reduced to 3.9 per cent,
arising from work to restructure the derivatives portfolio
-- Establishment of and recruitment into a new Board Trainee
position, which has been designed to promote access to
non-executive positions for people from minority ethnic
backgrounds
-- A successful summer work experience scheme for children of
residents and staff, in support of our ambition to help young
people into employment
Outlook
PA Housing's financial position remains stable and resilient, in
line with the business model which focusses on core social housing
activities. Our A3 Stable rating with Moody's was reaffirmed in
October 2019. Liquidity is strong and work is ongoing to develop
further lines of liquidity in support of our medium term growth
plans. We continue to prioritise the safety and comfort of our
residents - this will entail some additional expenditure
commitments in relation to the evolving national fire safety agenda
in particular, and we will factor those commitments into our
financial planning. During the current year we remain on track to
meet our financial golden rule targets.
Statement of Comprehensive Income to 30 September 2019
Actual GBPm Budget GBPm Variance
GBPm
Rent and service charges income 65.5 66.3 (0.8)
------------ ------------ ---------
Shared ownership first tranche
sales 4.5 11.6 (7.1)
------------ ------------ ---------
Other income 2.2 1.9 0.3
------------ ------------ ---------
Amortisation of Social Housing
Grant 2.7 2.6 0.1
------------ ------------ ---------
Turnover 74.9 82.4 (7.5)
------------ ------------ ---------
Core operating costs (38.4) (38.0) (0.4)
------------ ------------ ---------
Depreciation (10.6) (10.1) (0.5)
------------ ------------ ---------
Cost of first tranche sales (2.6) (8.0) 5.4
------------ ------------ ---------
Surplus on fixed asset disposals 4.4 4.9 (0.5)
------------ ------------ ---------
Operating surplus 27.7 31.2 (3.5)
------------ ------------ ---------
Net interest (13.5) (13.7) 0.2
------------ ------------ ---------
FRS 102 accounting adjustments (0.5) - (0.5)
------------ ------------ ---------
Total comprehensive income 13.7 17.5 (3.8)
------------ ------------ ---------
Statement of Financial Position as at 30 September 2019
30 Sep 19 31 Mar 19
GBPm GBPm
Negative goodwill (8) (8)
---------- ----------
Tangible fixed assets 1,706 1,672
---------- ----------
Current assets 108 102
---------- ----------
Current liabilities (45) (57)
---------- ----------
Total assets less current liabilities 1,761 1,709
---------- ----------
Creditors due after more than
one year (1,219) (1,180)
---------- ----------
Pension liabilities and other
provisions (27) (27)
---------- ----------
Total net assets 515 502
---------- ----------
Reserves 515 502
---------- ----------
Enquiries
All enquiries in relation to this trading update should be
directed to:
Simon Hatchman, Executive Director - Resources
Tel: 0116 257 6786
email: simon.hatchman@pahousing.co.uk
Disclaimer
The information in this preliminary announcement of interim
results has been prepared by Paragon Asra Housing Limited and is
for information purposes only. The announcement should not be
construed as an offer or solicitation to buy or sell any securities
issued by Paragon Treasury Plc or any other member of the Group, or
any interest in such securities, and nothing herein should be
construed as a recommendation or advice to invest in any such
securities.
This unaudited announcement contains certain forward looking
statements reflecting, among other things, our current views on
markets, activities and prospects. By their nature, forward looking
statements involve a number of risks, uncertainties or assumptions
that could cause actual results to differ materially from those
expressed or implied by those statements. 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. Accordingly, undue
reliance should not be placed on forward looking statements.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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