TIDM96XN TIDM51GC
RNS Number : 6598A
Clarion Funding plc
23 January 2024
Clarion Funding plc
CLARION HOUSING GROUP Q3 2023/24 PERFORMANCE UPDATE
Clarion Housing Group's Quarterly Performance Update covering
the period to 31 December 2023
Financial performance
The unaudited management accounts for the year to 31st December
2023 show a turnover of GBP720.3 million (22/23 GBP758.3 million),
and an operating surplus of GBP160.5 million (22/23 GBP233.9
million). Of the GBP73 million reduction in operating surplus,
GBP69 million of this is attributable to a lower surplus on
disposals. This continues to reflect the more cautious approach to
disposals we have taken in the current economic climate as well as
the large stock transfers that occurred early in the prior year.
Other elements include a lower surplus on development sales and
higher operating costs, although the majority of the operating cost
increases are substantially offset by higher rental income
following the 7% rent increase in 2023.
The Group has continued to invest significantly in improving its
existing homes, with GBP96.7 million invested by the end of
September 2023 - increased from GBP91.7 million over the same
period the prior year. A total of GBP380.1 million was also
invested in our new homes programme - lower than the previous year
in line with the balanced approach being adopted due to challenging
market conditions.
Housing fixed assets stood at GBP8.55 billion, up from GBP8.31bn
as at 31 March 2023. Drawn debt was GBP4.63 billion, up from
GBP4.46 billion as at 31 March 2023. Liquidity stood at GBP0.81
billion (31 March 2023: GBP1.02 billion) with committed and fully
secured loan facilities at GBP5.38 billion (31 March 2023: GBP5.41
billion).
Operational performance
Customer satisfaction has been good, exceeding our internal
targets with scores last measured at 84.5% for overall customer
satisfaction (target: 80%) and 90.7% for satisfaction with last
repair (target: 85%).
Rent arrears has improved to 7.9%, from 8.1% at the end of the
last quarter. While the level is improving, it remains higher than
usual due to the continued legacy impact of the cyber security
incident in 2022, where a proportion of our direct debits were
affected. Our teams continue to deliver targeted and bespoke
support to help residents maximise their income and manage their
finances.
The Group had completed 811 new homes by the end of December
2023. Most of these homes - 71% - were for affordable tenures. The
current pipeline remains in excess of 20,000 homes.
Outright market and shared ownership sales generated income of
GBP91.6 million, with a margin of 10.7%.
Sustainability
Energy and technology group Octopus Energy has partnered with
The Hill Group and Clarion Housing Group in a landmark strategic
partnership to develop the nation's most extensive 'Zero Bills'
housing development, comprising 89 homes at Hollymead Square in
Newport, Essex. Residents will pay no energy bills for a minimum of
five years, guaranteed.
Of the 89 homes, 64 will be sold on the open market. The
remaining 25 will be made available for affordable rent and shared
ownership by Clarion. These will be the first completed 'Zero
Bills' homes available for affordable rent.
Meanwhile, Latimer, the development arm of Clarion Housing
Group, has again been recognised as the most sustainable
not-for-profit housebuilder in the country, according to the
NextGeneration Benchmark, achieving a Gold Award.
The 'NextGeneration' initiative is the sustainability benchmark
for the UK's housebuilding sector. Latimer has been named joint
third among all housebuilders in the 2023 report and has achieved a
Gold Award for its continued commitment to driving sustainability
in affordable house building.
Supporting our residents and communities
Over the first nine months of the year, the Group's charitable
foundation, Clarion Futures, supported 1,465 people into work and
5,002 into training, as well as helped 61 people to set up their
own business, through its free jobs and training service.
Demand on Clarion Futures' money service continues to be high,
and 16,195 residents have benefitted from money guidance from
Clarion Futures and its external partners since April 2023.
A total of GBP1,132,303 has been awarded in grant funding to
community-based organisations, including food banks and local
charities tackling issues such as loneliness and isolation, and
other organisations delivering projects that benefit wider
society.
Credit ratings
During the quarter, S&P completed its annual review and
affirmed Clarion Housing Group's A- rating, with a stable outlook.
Moody's took action to take Clarion off 'negative' outlook in
October, with the agency citing; "the proactive actions taken by
the issuer to mitigate the adverse effects of the weaker operating
environment, thereby limiting development risk." Clarion is rated
A3, with a stable outlook.
ENDS
For more information, please contact:
Andrew Hill, Director of Treasury and Corporate Finance, Clarion
Housing Group - 0203 840 0164 / andrew.hill@clarionhg.com
Lucy Pond, Senior Communications Manager, Clarion Housing Group
- 0207 378 5555 / lucy.pond@clarionhg.com
Disclaimer
The information contained herein (the "Trading Update") has been
prepared by Clarion Housing Group Limited (the "Parent") and its
subsidiaries (the "Group"), including Clarion Funding plc, Affinity
Sutton Capital Markets plc, Circle Anglia Social Housing Plc and
Circle Anglia Social Housing 2 Plc (the "Issuers") 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 Issuers 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.
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END
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