19th Feb 2020 12:44
Longhurst Group Trading Update for the period ending 31 December 2019
Longhurst Group Ltd ("LG") is today issuing its consolidated unaudited trading update for the nine months ended 31 December 2019.
The Statement of Comprehensive Income Comparatives (SOCI) are to LG's consolidated unaudited results for the nine months ending 31 December 2018.
Highlights
·; Total turnover excluding property sales for the period was £94.6m, a decrease of 0.64% on the prior year. This year is the final year of 1% per annum rent decreases, and the rental policy reverts to CPI+1% for at least five years from 01 April 2020.
·; Property sales maintain a strong margin of 20.60% compared to 22.24% from 2018. Property sales turnover is £8.5m lower to December 2019 compared to the year to date position at December 2018.
·; As at December 2019, we had completed 167 Property sales in the year compared to a year to date target of 165.
·; The slightly lower margin on property sales is a result of a gradual move towards more land led opportunities from section 106.
·; Operating margin was 33.13% down from 33.80% in 2018.
·; The increase in the gain on disposal of PPE is due to the volume of voluntary right to buy sales which have completed in the period to December 2019
·; Included within operating costs to December 2019 are £1.6m of costs relating to exiting of local government pension schemes.
Commenting on the results to the 31 December, Robert Griffiths CFO and Deputy CEO
"LG's operating surplus for the period to the end of December was just over £2.5m better than budget at £37.9m.
The margin on low cost home ownership ("LCHO") sales and market sales was 20.60% to 31 December 2019, down from 22.24% for the same period in 2018. The continued strong sales performance is backed by healthy first tranche sale percentages, which are consistently averaging above 43%. Our average sales period is reducing and stands at 2.9 months for the year to December 2019; we are experiencing a continued strong demand with properties being sold off plan."
Housing Completions
LG are forecasting to complete 552 completions in the year to 31 March 2020 compared to a business plan target of 551.
Future Development
A further 708 units are within the business plan to be completed by 2021/22, 626 of which are from current committed projects and uncommitted identified sites which are not yet in contract.
|
|
| 9 months to |
| 9 months to |
|
|
|
|
|
| 31/12/2019 |
| 31/12/2018 |
| Movement |
|
|
|
| £'000 |
| £'000 |
| £'000 |
|
Statement of Comprehensive Income |
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
Turnover (excluding property sales) | 94,571 |
| 95,180 |
| (609) | -0.64% | ||
Turnover from property sales | 19,940 |
| 28,459 |
| (8,519) | -42.72% | ||
Total turnover |
| 114,511 |
| 123,639 |
| (9,128) | -7.97% | |
|
|
|
|
|
|
|
|
|
Cost of sales |
| (15,832) |
| (22,129) |
| 6,297 | -39.77% | |
Operating costs |
| (63,641) |
| (60,940) |
| (2,701) | 4.24% | |
Gain on disposal of PPE (fixed assets) | 2,903 |
| 1,215 |
| 1,688 | 58.15% | ||
Operating surplus |
| 37,941 |
| 41,785 |
| (3,844) | -10.13% | |
Operating margin |
| 33.13% |
| 33.80% |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Movement in investment properties | - |
| - |
| - |
| ||
|
|
|
|
|
|
|
|
|
Interest receivable and other income | 234 |
| 180 |
| 54 | 23.08% | ||
|
|
|
|
|
|
|
|
|
Interest payable and similar charges | (20,766) |
| (22,013) |
| 1,247 | -6.01% | ||
|
|
|
|
|
|
|
|
|
Actuarial gains/losses in respect | - |
| - |
| - |
| ||
of pension schemes |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Tax payable |
| (81) |
| (65) |
| (16) | 19.75% | |
|
|
|
|
|
|
|
|
|
Surplus for the period | 17,328 |
| 19,887 |
| (2,559) | -14.77% | ||
Net margin |
| 15.13% |
| 16.09% |
|
|
| |
|
|
|
|
|
|
|
|
| 31/12/2019 |
| 31/03/2019 |
|
|
| £'000 |
| £'000 |
Statement of Financial Position |
|
|
| ||
|
|
|
|
|
|
Fixed assets |
|
|
|
| |
Housing properties |
| 1,158,276 |
| 1,105,338 | |
Investment properties |
| 8,527 |
| 8,377 | |
Other fixed assets |
| 17,624 |
| 17,552 | |
|
|
| 1,184,427 |
| 1,131,267 |
|
|
|
|
|
|
Current assets |
|
|
|
| |
Stock |
|
| 16,582 |
| 26,717 |
Trade and other debtors | 10,249 |
| 8,136 | ||
Cash and cash equivalents | 13,110 |
| 43,278 | ||
|
|
| 39,941 |
| 78,131 |
|
|
|
|
|
|
Creditors: amounts falling due within one year | (26,845) |
| (41,354) | ||
|
|
|
|
|
|
Net current assets/(liabilities) | 13,096 |
| 36,777 | ||
|
|
|
|
|
|
Total assets less current liabilities | 1,197,523 |
| 1,168,044 | ||
|
|
|
|
|
|
Creditors: amounts falling due after one year |
|
|
| ||
Loans |
|
| (592,930) |
| (587,320) |
RCGF |
|
| (1,196) |
| (1,196) |
Loan issue costs |
| 9,485 |
| 9,006 | |
Mark to market position | (28,756) |
| (25,552) | ||
Deferred capital grant |
| (292,390) |
| (280,747) | |
|
|
| (905,787) |
| (885,809) |
|
|
|
|
|
|
Pension provision |
| (24,429) |
| (29,333) | |
|
|
|
|
|
|
Total net assets |
| 267,307 |
| 252,902 | |
|
|
|
|
|
|
Capital and reserves |
|
|
| ||
Revenue reserve |
| 157,859 |
| 140,250 | |
Revaluation reserve |
| 137,204 |
| 137,204 | |
Cashflow hedge reserve | (28,756) |
| (25,552) | ||
Designated reserves |
| 1,000 |
| 1,000 | |
|
|
|
|
|
|
|
|
| 267,307 |
| 252,902 |
The consolidated accounts of Longhurst Group Limited have been available since September 2019 on the Group website publications section, link as follows; https://www.longhurst-group.org.uk/media/2636/web-lg-financial-statement-2019.pdf
In February 2020 Longhurst Group had its governance and viability ratings confirmed by the regulator as V1/G1, link as follows; https://www.gov.uk/government/publications/regulatory-judgement-longhurst-group-limited
The current Longhurst Group board members are:
Robert Wilson, Julie Doyle, Parmjit Dhanda, Patricia Brandum, Stephen Wenham, Angela Morris, Gabriel Behr and Jenny Brown
Resignations since 31st March 2019 are Clive Barnett, Daniel Elkins and Hilary Lindsay
Appointments since 31st March 2019 are Gabriel Behr
Following the transfers of engagements of Longhurst & Havelok Homes Limited, Spire Homes (LG) Limited, Friendship Care and Housing Limited and Axiom Housing Association Limited to Longhurst Group Limited on 1 July 2019, the Homes Board was disbanded. Further details of the updated governance structure are available in the Longhurst Group Limited's consolidated accounts.
The current Libra (Longhurst Group) Treasury plc and Libra (Longhurst Group) Treasury No.2 plc board members are:
Clive Barnett, Robert Griffiths, Angela Morris and Karen Preece
Resignations since 15th May 2018 are Daniel Elkins, Alan Lewin and Hilary Lindsay
Appointments since 15th May 2018 are Angela Morris and Karen Preece
For Further information, please contact:
Rob Griffiths, Chief Financial Officer & Deputy Chief Executive
Kate Wood, Director of Corporate Finance
For media enquiries, please contact:
Jon Reeves, Press and PR Manager
Longhurst Group 0345 30 90 700
Related Shares:
Libra(long)2 43