TIDM46GV
RNS Number : 0309K
Karbon Homes Limited
16 December 2022
Karbon Homes Group
16th December 2022
Karbon Homes Group trading update for the six-month period
ending 30 September 2022
-- Karbon Homes Group (KHG) is today issuing its consolidated
trading update for the period ended 30 September 2022.
-- These figures are unaudited and for information purposes only.
Highlights for the period ending 30 September 2022
-- KHG own and manage 29,828 homes
-- Turnover for the period was GBP81.0m (2021: GBP76.6m)
-- Operating surplus (including asset sales) for the period was GBP22.7m (2021: GBP24.9m)
-- Overall operating margin (including asset sales) was 26.9% (2021: 30.7%)
-- Overall operating margin (excluding asset sales) was 25.3% (2021: 30.8%)
-- The surplus before tax for the period was GBP13.7m (2021: GBP15.4m)
-- Gearing at 30 September 2022 was 35.3% (2021: 35.5%)
-- Return on capital employed for the period was 1.93% (2021: 2.17%)
Commenting on the results, Scott Martin, Executive Director of
Resources, said:
We're pleased to publish our six-monthly results to September
2022 and re-assure our stakeholders that we continue to maintain a
positive performance and deliver on our organisational aims of
providing as many good quality homes as we can, delivering an
excellent customer service and shaping strong sustainable places
for our communities. We are immensely proud of our people and the
results of their hard work and dedication are outlined in our
annual report to 31 March 2022.
Our performance in the previous year laid strong foundations for
our first six months in FY2022/23, as we looked to use our position
as an anchor institution to positively benefit our communities.
This will continue to be extremely important as our customers face
increasing pressures around the rising cost of living.
Our main priority is ensuring the homes we provide are safe,
comfortable and efficient. At the moment, almost 79% of our homes
are rated at EPC C or above and we'll continue to work hard to
increase that.
The recent spotlight on damp and mould cases in the housing
sector is a focus for us, and we have a number of robust systems
and processes in place to ensure we proactively identify any damp
and mould problems in our homes, as well as promptly respond to any
issues customers raise. We've set out our approach to tackling this
on our website.
In terms of the delivery of new homes, were pleased to say that
we have delivered 296 high quality and affordable new homes across
the north in the period to the end of November 2022. This is
despite the challenges faced surrounding materials and labour
shortages within our supply chain.
Furthermore, almost 94% of our customers were very or fairly
satisfied with the quality of their new home in this period, which
is a great achievement for us and our various construction partners
against this challenging backdrop.
From an existing home point of view, we've invested over
GBP21.8m so far this year across our planned, responsive and
cyclical repairs programmes, with almost 93% of our customers
saying they were very or fairly satisfied with our repairs services
overall.
This work has helped us maintain our strong performance in
customer satisfaction with a Net Promotor score of +47 along with a
positive impact on our occupation and rent collection rates, with
both these metrics above 99% in the year to date too.
On 4 October 2022, we published our second annual ESG Report
against the Sustainability Reporting Standard for Social Housing.
The report provides an overview of the variety of work we deliver
and our impact across Environmental, Social and Governance
areas.
We hope that you find this summary information about our
performance useful, but we want to also stay in touch with our
stakeholders by holding our annual investor update in early January
2023, as well as offering the opportunity for one-to-one meetings
where preferable.
In January, we'll want to tell you more about what is on the
horizon for us as FY22/23 comes to an end, provide assurances
around how we're dealing with the challenges posed by the UK
Governments rent cap of 7% and protecting the interests of our
customers and communities at the same time.
The webinar will be hosted by our Group Chief Executive, Paul
Fiddaman, with further details to be released soon.
To register an interest in this event or in a one-to-one meeting
with us, please get in touch with Andrew Thompson (AD Treasury), at
andrew.thompson@karbonhomes.co.uk
Our unaudited 6 monthly Group results and other key indicators
are displayed below
Unaudited Financial Metrics
30-Sep 30-Sep
2022 2021
Actual Actual
GBP'000 GBP'000
Statement of Comprehensive Income
Turnover 80,982 76,647
Operating Surplus (including asset sales) 22,656 24,910
Surplus before tax 13,727 15,414
Margins
Overall operating margin (incl. asset sales)
(Note 1) 26.9% 30.7%
Overall operating margin (excl. asset sales)
(Note 2) 25.3% 30.8%
Key Financial Ratios
Interest cover (EBITDA MRI) (Note 3) 217.9% 277.4%
Gearing (Note 4) 35.3% 35.5%
Return on Capital Employed (ROCE) (Note 5) 1.9% 2.2%
30-Sep
2022
Liquidity
24-month liquidity requirement (GBP'000) (Note
6) 198,094
Cash and undrawn facilities (GBP'000) (Note
7) 210,554
Unencumbered stock (no. of properties) 7,318
Value of unencumbered stock (Avg of EUV and
MV, GBP'000) (Note 8) 293,390
Loan security excesses (Avg of EUV and MV,
GBP'000) (Note 9) 250,411
Credit Rating
A (stable): 24th
Standard & Poors (S&P) May 2022
Notes:
1) Operating margin including asset sales includes all
activity
2) Operating margin excluding asset sales removes the gain or
loss on disposal of housing properties
3) Earnings before interest, tax, depreciation and amortisation,
major repairs included is defined as: (Operating surplus - Disposal
of assets - Outright sales and first tranche SO surpluses
+ Depreciation & impairment - Grant amortisation -
Capitalised major repairs) / Interest paid
(reflecting the 'S&P global methodology for rating public
and non-profit social housing providers', published 1st June
2021)
4) Gearing is defined as Group Net Debt / Group Housing assets
at historic cost less depreciation (RSH VFM Gearing
definition).
Karbon have chosen to include cash held in non ring-fenced
investment accounts as available cash, Sept 2022: GBP56.0m (Sept
2021: GBP83.7m)
5) Return on capital employed is defined as Operating Surplus
(incl. asset sales) / Total Assets less current liabilities
6) 24 month cashflow requirements
7) Cash, investments and undrawn RCF (Revolving Credit
Facilities)
8) Value of stock not held by a lender or security trustee.
9) Value of excess security held with current lenders or
Prudential Trustees
Disclaimer:
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
E mail: Andrew.thompson@karbonhomes.co.uk
Tel: 07917 642 957
https://www.karbonhomes.co.uk/corporate/
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END
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