RHP Finance PLC Trading Statement (9606O)
15 Juni 2022 - 11:15AM
UK Regulatory
TIDM62ZW
RNS Number : 9606O
RHP Finance PLC
15 June 2022
RHP Group trading update for the year ending 31 March 2022
-- Richmond Housing Partnership Group (RHP) is today issuing its
consolidated trading update for the year ended 31 March 2022.
-- These figures are unaudited and for information purposes only.
Highlights for the period ending 31 March 2022
-- RHP own and manage 10,951 homes
-- Turnover for the period was GBP63m (2021: GBP64m)
-- Social housing lettings turnover contributed 87% of total turnover (2021: 84%)
-- Operating surplus (including asset sales) for the period was GBP16m (2021: GBP19m)
-- Operating margin on social housing lettings was 27% (2021: 36%)
-- Overall operating margin (including asset sales) was 26% (2021: 30%)
-- Overall operating margin (excluding asset sales) was 22% (2021: 29%)
-- Net margin on shared ownership (first tranche) was 37% (2021: 7%)
-- The surplus after tax and pensions for the period was GBP13m (2021: GBP7m)
-- Asset gearing as at 31 March 2022 was 56% (2021: 58%)
-- Return on capital employed for the period was 3.3% (2021: 4.0%)
Commenting on the results, Corinna Bishopp, Executive Director
of Finance, said:
Our legacy of strong financial performance has enabled the Board
to make important strategic choices in 2021/22 regarding additional
investment. We are facing common challenges with the economy with
regard to inflation, recruitment and retention of labour, and
scarcity of key materials. This has resulted in particular
challenges for our repairs service which have led us to increase
investment in our customer service teams to improve service
performance. We continue to invest more in the safety of our
residents through fire safety and compliance activity.
While much of this spending is non-recurring, and it does not
generate a definable financial return, these critical decisions do
have an impact on our financial performance in the year compared to
previous years; however, we are pleased to note a continued good
performance and strong balance sheet.
The Group's operating surplus was GBP16m (2021: GBP19m) and
operating margin of 22% (2021: 29%). Continued development has
ensured we continue to grow our turnover, and the first tranche
sales of shared ownership properties has contributed GBP2.3m (2021:
GBP6.0m) to our turnover and GBP0.9m (2021: GBP0.4m) to our overall
surplus.
Our social housing cost per unit of GBP4,832 (2021: GBP3,903)
has increased due to higher core operating spend and increased
investment in our properties during the year.
The Group's total comprehensive income was GBP12.8m (2021:
GBP7.1m) and RHP's subsidiary, Co-op Homes (South) Limited has
contributed GBP1.0m (2021: GBP0.5m) to this overall surplus.
Our EBITDA-MRI margin at 16% (2021: 29%) demonstrates the
additional investment made, but still illustrates strong core
performance that can comfortably cover the level of investment
required to keep our homes in good condition.
We continue to see challenges in our development programme and
due to the insolvency of one developer in 20/21 we have incurred a
further impairment of GBP2.3m.
Unaudited Financial Metrics
Statement of comprehensive income 31 Mar 2022 31 Mar 2021
Actual Actual
--------------------------------------------- ------------ ------------
Turnover from social housing lettings GBP55m GBP54m
Turnover GBP63m GBP64m
Operating surplus (including asset sales) GBP16m GBP19m
Surplus after tax and pensions GBP13m GBP7m
--------------------------------------------- ------------ ------------
Margins 31 Mar 31 Mar
2022 2021
Actual Actual
--------------------------------------------- ------------ ------------
Operating margin on social housing lettings 27% 36%
Overall operating margin (inc asset sales) 26% 30%
Overall operating margin (exc asset sales) 22% 29%
Operating margin on shared ownership (first
tranche) 37% 7%
Key financial ratios 31 March
2022
Actual
--------------------------------------------- ------------ ------------
EBITDA MRI Interest cover 115%
EBITDA MRI Interest Cover (before one-off
impairment) 142%
Gearing 56%
Liquidity 31 March
2022
Actual
--------------------------------------------- ------------ ------------
24-month liquidity requirement GBP62m
Cash and undrawn facilities GBP178m
Retained bonds(10) GBP25m
Unencumbered stock (EUV-SH) GBP61m
Credit rating
--------------------------------------------- ------------ ------------
S&P June 2021 (under review) A+ (stable)
Notes:
Operating surplus / Turnover
General Needs, Supported housing, Affordable rent and Low-cost
home ownership tenures
Operating margin including asset sales includes all activity;
operating margin excluding assets removes gain or loss on disposal
of assets including first tranche shared ownership sales
Operating surplus on first tranche shared ownership sales /
Turnover from first tranche shared ownership sales
(Operating surplus + Depreciation + Amortisation - Capitalised
major repairs) / Net interest paid
Net Debt / Housing assets at historic cost
Net debt / Total units owned & managed
24-month cashflow requirement (before financing). Factors in
cash generated from operating activities.
Cash and undrawn RCF
(10) Retained element of RHP Finance PLC 2048 bonds
This trading update contains certain forward-looking statements
about the future outlook for RHP Group. These have been prepared
and reviewed by RHP Group 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 the statement should not be construed as
solicitation/recommendation to invest in RHP's bonds.
For further information, please contact:
Corinna Bishopp, Executive Director of Finance
Investor.relations@rhp.org.uk
https://www.rhp.org.uk/rhpui/investors
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