TIDM46GV

RNS Number : 2526W

Karbon Homes Limited

10 December 2019

 
 Karbon Homes Group 
 10 December 2019 
 
 Karbon Homes Group trading update for the period ending 
  30 September 2019 
 -- Karbon Homes Group (KHG) is today issuing its consolidated trading update for 
  the period ended 30 September 2019. 
 -- These figures are unaudited and for information 
  purposes only. 
 
 Highlights for the period ending 30 September 
  2019 
 -- KHG own and manage 26,273 homes 
 -- Turnover for the period was GBP63.7m (2018: 
  GBP62.6m) 
 -- Operating surplus (including asset sales) for the period 
  was GBP20.3m (2018: GBP19.7m) 
 -- Overall operating margin (including asset sales) 
  was 32% (2018: 31%) 
 -- Overall operating margin (excluding asset sales) was 
  30% (2018: 31%) 
 -- Net margin on shared ownership (first tranche) 
  was 20% (2018: 34%) 
 -- The surplus after tax for the period was GBP12m 
  (2018: GBP13m) 
 -- Gearing as at 30 September 2019 was 44% (2018: 
  37%) 
 -- Return on capital employed for the period was 
  2% (2018: 2%) 
 
 
 Commenting on the results, Greg van Enk-Bones, Interim Executive 
  Director of Resources, said: 
 "We are pleased to publish our mid-year 2019/20 results. This 
  is the second year of our 5-year strategy, which includes our 
  aim to build more than 500 new affordable homes. 
 We are excited to have delivered 213 new affordable homes in 
  the first half of this financial year and we are on track to 
  deliver our target of 519 by the end of March 2020. 
 We have also recently conducted a customer survey and we are 
  proud of the results, which gave us a +43 Net promoter score. 
  Finally, we continue to invest in our communities during the 
  year to date, resulting in targets for those moving into education, 
  training and employment being surpassed in the period to Sept 
  2019. All of this means we are well on track to deliver against 
  our three strategic aims of Homes, Customer and Place." 
 
 
 S&P Global have reviewed our credit rating and we have retained 
  our A+ rating. 
 We look forward to continuing successes in delivering new homes 
  whilst continuing to drive operating efficiencies and strong 
  financial results. 
  Our unaudited 6 monthly Group results and other key indicators 
  are displayed below 
 
 
 Unaudited Financial Metrics 
                                                  30-Sep    30-Sep 
 Statement of Comprehensive Income                  2019      2018 
 
                                                  Actual    Actual 
                                                 GBP'000   GBP'000 
 
 
 Turnover                                         63,680    62,639 
 
 Operating Surplus (including asset sales)        20,339    19,715 
 Surplus after tax                                11,959    12,958 
 
 Margins 
 
 Overall operating margin (incl. asset sales) 
  (Note 1)                                           32%       31% 
 Overall operating margin (excl. asset sales) 
  (Note 2)                                           30%       31% 
 Operating margin on shared ownership (first 
  tranche) (Note 3)                                  20%       34% 
 
 Key Financial Ratios 
 
 EBITDA MRI (Note 4)                                289%      340% 
 Gearing (Note 5)                                    44%       37% 
 Return on Capital Employed (ROCE) (Note 6)           2%        2% 
 
 
                                                         30-Sep 
                                                           2019 
 
 Liquidity 
 24 month liquidity requirement (GBP'000) (Note 
  7)                                                    108,649 
 Cash and undrawn facilities (GBP'000) (Note 
  8)                                                    196,500 
 Unencumbered stock (no of properties)                    4,259 
 Value of unencumbered stock (Avg of EUV and 
  MV, GBP'000) (Note 9)                                 151,097 
 Loan security excesses (Avg of EUV and MV, GBP'000) 
  (Note 10)                                             205,782 
 
 
 Credit Rating 
 
 S & P           A+ (negative) 
 
 
 Notes: 
 
 1) Operating margin including asset sales includes all activity 
 2) Operating margin excluding assets removes gain or loss on 
  disposal of assets 
 3) Operating surplus on First tranche shared ownership sales 
  / Turnover from first tranche shared ownership sales 
 4) (Operating surplus + Depreciation + Amortisation - Capitalised 
  major repairs) / Net interest paid 
 5) Group Net Debt / Group Housing assets at historic cost less 
  depreciation (RSH VFM Gearing definition), differs to Karbon's 
  banking gearing calculation 
     which is defined as Net Debt/Housing assets at historic cost, 
      and informs our internal Golden Rules 
 6) Operating Surplus (incl. asset sales) / Total Assets less 
  current liabilities 
 7) 24 month cashflow requirements 
 8) Cash and undrawn RCF (Revolving Credit Facilities) 
 9) Value of stock not held by a lender or security trustee, at 
  average GBP35k per unit 
 10) Value of excess security held with current lenders or Prudential 
  Trustees 
 
 
 This trading update contains certain forward-looking statements 
  about the future outlook for Karbon Homes Group. These have been 
  prepared and reviewed by Karbon only and are unaudited. 
 Forward-looking statements inherently involve a number of uncertainties 
  and assumptions. Although the Directors believe that these statements 
  are based upon reasonable assumptions on the publication date, 
  any such statements should be treated with caution as future 
  outlook may be influenced by factors that could cause actual 
  and audited outcomes and results to be materially different. 
 Additionally, the information in this statement should not be 
  construed as solicitation/recommendation to invest in Karbon's 
  bonds 
 
 
 
 
 For further information, please contact: 
 Andrew Thompson, Assistant Director: Treasury 
 07917 642957 
 
 https://www.karbonhomes.co.uk/corporate/ 
 END

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