TIDM60VT
RNS Number : 0302M
Paragon Treasury PLC
06 May 2020
Paragon Treasury Plc
Paragon Asra Housing Limited ('PA Housing') trading update and
unaudited financial results for the period ended 31 March 2020
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 2019/20 financial
year.
Over the period, PA Housing has delivered an operating surplus
of GBP54.5m from turnover of GBP149.8m, equating to an operating
margin of 36 per cent. The net surplus after interest and other
adjustments (including negative movement of GBP11.7m on fair value
of financial instruments as at the reporting date) is GBP18.2m.
Total available liquidity as at 31 March was GBP223m, with a
further GBP155m of new loan facilities completed in March but not
yet available to draw.
Overall results on core lettings operations are in line with
forecast expectations, with some minor impacts in the final few
weeks of the financial year due to the emerging Covid-19 situation.
New build shared ownership sales activity was behind budget,
primarily reflecting a timing variance driven by delays in
completion of the build phase on some development projects. A
number of homes were completed late in the financial year and have
been carried forward into the new year for sale.
Financial and operational highlights
-- Capital investment in our existing stock of GBP17m, including
substantial programmes to improve the energy efficiency of our
homes
-- GBP3.2m spent to further enhance fire safety within our six storey and above schemes
-- Investment in new homes of GBP132m, with 276 completions in
the year and a further c.100 homes close to completion but delayed
by Covid-19 restrictions. All new homes completed in the year were
core social housing, with the exception of 18 market rent
properties
-- A margin on new build shared ownership sales of 42 per cent
(52 homes sold), with demand in our core operational areas
remaining solid and sales values holding up well
-- A surplus of GBP2.7m from shared ownership staircasing
transactions, some GBP1.0m ahead of budget
-- Secured nearly GBP4m of additional income for residents through our tenancy sustainment work
-- Completed a new Sustainability Strategy which will drive our
work in this crucial arena around the themes of People, Properties
and Partners
-- 10,000 registered users on our digital services platform
MyPA, with 3,000 rent payment transactions per month and 10 per
cent of all responsive repairs raised via the platform
-- Acted on feedback from 2,000 residents to reshape our repairs
& maintenance and home moves services
-- Sale of 88 homes under the Voluntary Right To Buy pilot scheme, generating surplus of GBP8.6m
-- Weighted average cost of capital reduced to 3.7 per cent
-- All financial golden rule targets have been met
Areas of focus
-- During the year the income lost through vacant properties
exceeded budget. Improving our average re-let times is a service
priority in the year ahead
-- We have made good progress on additional investment into some
of our London estates to improve standards for residents, and this
programme will continue into the next financial year
-- Our response to Covid-19 was outlined in a stock exchange
announcement on 2 April 2020. In line with the sector as a whole,
the situation has had a major impact on service delivery and our
priority remains to keep our residents, staff and partners as safe
as possible. Our financial resilience remains strong, but we
continue to closely monitor the evolving position
Outlook
PA Housing's financial outlook is stable, in line with the
business model which focusses on core social housing activities.
There will be some short term disruption to this due to Covid-19
but we are well placed to resume normal operations as soon as the
wider environment allows.
Our liquidity position is strong and work is ongoing to develop
further lines of funding in support of our medium term growth
plans. We successfully completed on GBP185m of new bank funding in
March 2020.
Statement of Comprehensive Income to 31 March 2020
Actual GBPm Budget GBPm Variance
GBPm
Rent and service charges income 131.5 133.2 (1.7)
------------ ------------ ---------
Shared ownership first tranche
sales 8.4 15.6 (7.2)
------------ ------------ ---------
Other income 4.5 3.7 0.8
------------ ------------ ---------
Amortisation of Social Housing
Grant 5.4 5.3 0.1
------------ ------------ ---------
Turnover 149.8 157.8 (8.0)
------------ ------------ ---------
Core operating costs (82.5) (76.0) (6.5)
------------ ------------ ---------
Depreciation (23.0) (20.2) (2.8)
------------ ------------ ---------
Cost of first tranche sales (4.8) (11.2) 6.4
------------ ------------ ---------
Surplus on fixed asset disposals 15.0 8.9 6.1
------------ ------------ ---------
Operating surplus 54.5 59.3 (4.8)
------------ ------------ ---------
Net interest (26.2) (28.3) 2.1
------------ ------------ ---------
FRS 102 accounting adjustments (11.5) - (11.5)
------------ ------------ ---------
Gift aid and taxation 1.4 - 1.4
------------ ------------ ---------
Total comprehensive income 18.2 31.0 (12.8)
------------ ------------ ---------
Statement of Financial Position as at 31 March 2020
31 Mar 20 31 Mar 19
GBPm GBPm
Negative goodwill (7) (8)
---------- ----------
Tangible fixed assets 1,778 1,672
---------- ----------
Current assets 128 102
---------- ----------
Current liabilities (54) (57)
---------- ----------
Total assets less current liabilities 1,845 1,709
---------- ----------
Creditors due after more than
one year (1,289) (1,180)
---------- ----------
Pension liabilities and other
provisions (28) (27)
---------- ----------
Total net assets 528 502
---------- ----------
Reserves 528 502
---------- ----------
Note: The above figures are based on unaudited management
accounts and are subject to change following audit. In particular,
pension scheme actuarial valuations as at 31 March 2020 are not yet
available and so are not included in the above figures.
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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