TIDM60VT
RNS Number : 6686F
Paragon Treasury PLC
08 November 2022
Paragon Treasury Plc
Paragon Asra Housing Limited ('PA') trading update and unaudited
financial results for the period ended 30 September 2022
PA, the parent company of Paragon Treasury Plc and a Registered
Provider owning and managing nearly 24,000 homes in the East
Midlands, London and Surrey, announces its trading highlights and
unaudited summary financial results for the first half of the
2022/23 financial year.
Results for the year to date align with Board expectations,
taking into account additional investment which has been approved
in certain areas in order to improve service delivery for
residents. Property sales performance has been strong, both in
terms of sales volumes and prices achieved.
Over the first half of the year, PA has delivered an operating
surplus of GBP20.1m from turnover of GBP90.8m, equating to an
operating margin of 22 per cent. The net surplus after interest and
other adjustments is GBP4.2m. Total available liquidity as at the
period end date was GBP354m, with a further GBP100m (nominal value)
of retained bonds.
Financial and operational highlights
-- Average re-let days have continued to improve from the peaks
experienced during the pandemic, hitting 34 days in September and
averaging 38 days in the year to date.
-- Rent arrears has remained stable to date in the face of
increasing cost of living headwinds for residents, sitting at 4.4%
at the end of September.
-- 90% of complaints received in the year to date have been
reviewed and responded to in line with our target timescale.
-- 87 new build shared ownership homes have been sold,
generating proceeds of GBP13.4m and a surplus of GBP2.8m at a
margin of 21 per cent, in line with our budgeted sales margin for
the year.
Areas for improvement
-- Routine responsive repairs completion rates are below
expectations and we are working with our contractors to improve
performance for residents. The emergency repairs service is
performing well.
-- Handover of completed new build homes is behind schedule due to delays on certain projects.
-- Call answering rates in our customer contact hubs are below
target, with particular resourcing issues within the Repairs Hub
which are being resolved. Inability to contact us quickly is a key
frustration for our residents, an issue which we must address.
-- Overall customer satisfaction remains low, with 62 per cent
of our residents expressing satisfaction with our services through
the perception-based surveys we conducted in the second quarter of
the year. A number of workstreams are in train to improve
satisfaction with our services, although we recognise that progress
is likely to be incremental.
Outlook
The UK economy faces an extremely challenging period. The social
housing sector and our residents will be affected. From the
business perspective, the mismatch between income inflation and
cost inflation is a key consideration. PA has seen double-digit
inflation when renewing a range of supply contracts, and has
experienced much more extreme inflation when procuring energy
supply. Meanwhile the government has intervened to limit the level
of rent increase for 2023/24. Although the cap level is not yet
known, this will undoubtedly impact on our capacity for investment
in the year ahead. Our financial stress-testing regime plans for
scenarios of this nature, and we are implementing appropriate
mitigating actions to limit the impacts.
Our residents are also facing acute pressures and we will
continue to offer support where possible. Given the heightened
risks around rent collection, sales completions and supply chain
management, we are forecasting on an extremely cautious basis in
the short-term so as to safeguard the financial position. Should
reality prove to be less severe than the pessimistic forecasts we
are maintaining, we will release capacity for further
investment.
Statement of Comprehensive Income to 30 September 2022
Actual GBPm Budget GBPm Variance
GBPm
Rent and service charges income 73.4 74.1 (0.7)
------------ ------------ ---------
Shared ownership first tranche
sales 13.4 14.9 (1.5)
------------ ------------ ---------
Other income 1.3 1.4 (0.1)
------------ ------------ ---------
Amortisation of Social Housing
Grant 2.7 2.8 (0.1)
------------ ------------ ---------
Turnover 90.8 93.2 (2.4)
------------ ------------ ---------
Core operating costs (52.4) (49.2) (3.2)
------------ ------------ ---------
Depreciation (10.7) (10.3) (0.4)
------------ ------------ ---------
Cost of first tranche sales (10.6) (11.9) 1.3
------------ ------------ ---------
Surplus on fixed asset disposals 3.0 3.3 (0.3)
------------ ------------ ---------
Operating surplus 20.1 25.1 (5.0)
------------ ------------ ---------
Net interest (15.9) (15.3) (0.6)
------------ ------------ ---------
Total comprehensive income 4.2 9.8 (5.6)
------------ ------------ ---------
Statement of Financial Position as at 30 September 2022
30 Sep 22 31 Mar 22
GBPm GBPm
Negative goodwill (6) (6)
---------- ----------
Tangible fixed assets and investments 2,095 2,000
---------- ----------
Current assets 90 123
---------- ----------
Current liabilities (57) (63)
---------- ----------
Total assets less current liabilities 2,122 2,054
---------- ----------
Creditors due after more than
one year (1,506) (1,449)
---------- ----------
Pension liabilities and other
provisions (17) (17)
---------- ----------
Total net assets 599 588
---------- ----------
Reserves 599 588
---------- ----------
Enquiries
All enquiries in relation to this trading update should be
directed to:
Simon Hatchman , Executive Director - Resources
Tel: 07720 087108
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR GIBDBDSGDGDI
(END) Dow Jones Newswires
November 08, 2022 09:00 ET (14:00 GMT)
Para Trsy 47 (LSE:60VT)
Historical Stock Chart
From Feb 2025 to Mar 2025
Para Trsy 47 (LSE:60VT)
Historical Stock Chart
From Mar 2024 to Mar 2025
