TIDM14MD
RNS Number : 1370I
Stonewater Funding PLC
30 November 2022
Mid-year performance update
Released: 30 11 2022
RNS Number: 058609
Stonewater Funding plc
30 November 2022
Stonewater Funding plc
STONEWATER H1 2022/23 PERFORMANCE UPDATE
Stonewater's Mid-Year Performance Update covering the period to
30 September 2022
Financial performance
The Group is pleased to report a continuing strong financial
performance. The unaudited management accounts for the six months
to 30 September 2022 show
-- Turnover of GBP118 million (H1 2021/22: GBP113 million),
delivering an operating surplus of GBP41 million (H1 2021/22: GBP40
million)
-- Interest cover was 244% (H1 2021/22: 251%)
-- Operating surplus for the year to March 2023 is forecast to be in line with expectations
-- The Group's total capital investment in existing homes during
the period was GBP10.6 million, an increase from GBP4.7 million for
the same period last year (which reflected the impact of Covid --
19-related restrictions at the time)
-- Total capital investment in new homes during the period was
GBP114 million (H1 2021/22: GBP76 million)
-- Housing Fixed Assets stood at GBP2,306 million, up from GBP2,221 million as at 31 March 2022
-- Drawn debt was GBP1,240 million, the same as 31 March 2022.
Cash and available facilities stood at GBP517 million (31 March
2022: GBP600 million) with committed and fully secured loan
facilities at GBP1,707 million (31 March 2022: GBP1,719
million)
-- In May 2022 S&P Global Ratings affirmed its rating of
Stonewater as A+ with a Negative Outlook.
-- Our G1/V1 rating was reaffirmed by the Regulator of Social Housing (RSH) on 30 November 2022
Operational performance
-- Overall customer satisfaction (year to date) at the end of
September 2022 was 83%, slightly lower than the 84% target. Within
this figure, we have seen good improvement in satisfaction with our
repairs service, 84.4% against a target of 84% (and compared to
82.7% for the same period last year). A key challenge this year has
been recruitment and retention within our Customer Service Centre
which we have given significant focus to and consequently expect
greater stability for the second half of the year.
-- Rent arrears are stable at 5.4% (March 22: 5.4%) and remain
below our target of 6%. We continue to provide a range of well --
used support services to help our residents sustain their tenancies
as outlined in our ESG report published earlier this year
https://www.stonewater.org/media/6005/stonewater-esg-report-2021-22.pdf
.
-- The Group completed 384 new homes during the first half of
the year (H1 2021/22: 430), all of which were for affordable
tenures, and started work on 463 new homes, all of which are
affordable tenures. With the progress in the development programme,
the pipeline is now for a further 4,954 homes by March 2026. Shared
ownership sales generated an income of GBP14.4 million (H1 2021/22:
GBP18.0 million) with a margin of 16% (H1 2021/22: 17%).
-- On 21 June 2022 Stonewater announced that it is in
discussions with Greenoak Housing Association Limited (Greenoak), a
community benefit society with registration number 20859R and a
registered provider of social housing with registration number
L1393. The current intention, subject to, amongst other things,
completion of due diligence, regulator and funder and consents, is
for Greenoak to join the Stonewater Group as a direct subsidiary of
Stonewater (5) Limited on or before 31 March 2023. Greenoak owns
and manages approximately 550 affordable homes across Surrey and
Sussex.
Supporting our residents and communities
The Group continues to support our customers in a range of ways.
For instance, our charity partner, Longleigh Foundation,
https://longleigh.org/ , continues to offer grants that make a huge
difference to people facing severe financial hardship. In addition
to this, we continue to send Stonewater's financial inclusion offer
to all customers to highlight the support available.
On cutting carbon emissions, Stonewater is committed to
improving the efficiency of homes and we are pursuing a
carbon-neutral approach to new developments. The Group is also
leading the way with energy efficiency, through projects such as
constructing an EPC A-rated affordable housing development in
Worcestershire and working with Boutique Modern to deliver modular
homes in East Sussex.
Board and Management
Stonewater appointed Darren Martin in September 2022 as Chief
Information and Transformation Officer to lead Stonewater's
innovation and people capability, with responsibility for
technology and data, corporate communications, people and
transformation.
In October 2022, Stonewater appointed Barry Hoffman and Hursh
Shah to the organisation's board.
Rent Cap
Following the announcement in the Autumn Statement 2022 that
social rents in England are to be capped at 7% in 2023/24,
Stonewater has provided a response which can be found on our
website
https://www.stonewater.org/news/press-releases/autumn-statement-2022/
.
ENDS
For more information, please contact:
Isabelle Kirk, Assistant Director of Treasury, Stonewater --
0118 909 9316 / Isabelle.kirk@stonewater.org
Wendie Gardiner, Head of Communications, Stonewater - 0118 909
9301 / Wendie.gardiner@stonewater.org
Disclaimer
The information contained herein (the "Trading Update") has been
prepared by Stonewater Limited (the "Parent") and its subsidiaries
(the "Group"), including Stonewater Funding plc, (the "Issuer") and
is for information purposes only.
The Trading Update 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.
Statements in the Trading Update, including those regarding
possible or assumed future or other performance of the Group as a
whole or any member of it, industry growth or other trend
projections may constitute forward--looking statements and as such
involve risks and uncertainties that may cause actual results,
performance or developments to differ materially from those
expressed or implied by such forward--looking statements.
Accordingly, no assurance is given that such forward--looking
statements will prove to have been correct. They speak only as at
the date of the Trading Update and neither the Parent nor any other
member of the Group undertakes any obligation to update or revise
any forward--looking statements, whether as a result of new
information, future developments, occurrence of unanticipated
events or otherwise.
None of the Parent, any member of the Group or anyone else is
under any obligation to update or keep current the information
contained in the Trading Update. The information in the Trading
Update is subject to verification, does not purport to be
comprehensive, is provided as at the date of the Trading Update and
is subject to change without notice. No reliance should be placed
on the information or any projections, targets, estimates or
forecasts and nothing in the Trading Update is or should be relied
on as a promise or representation as to the future. No statement in
the Trading Update is intended to be an estimate or forecast. No
representation or warranty, express or implied, is given by or on
behalf of the Parent, any other member of the Group or any of their
respective directors, officers, employees, advisers, agents or any
other persons as to the accuracy or validity of the information or
opinions contained in the Trading Update (and whether any
information has been omitted from the Trading Update). The Trading
Update does not constitute legal, tax, accounting or investment
advice.
www.stonewater.org
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END
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.
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END
IR FLFSELDLIVIF
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