TIDM14MD
RNS Number : 6959V
Stonewater Funding PLC
10 August 2020
Stonewater Funding
Stonewater full-year audited accounts to 31 March 2020
10 August 2020
Stonewater full-year trading statement and audited accounts to
31 March 2020
Stonewater delivered stable results and strengthened its
financial postion in the year ended 31 March 2020. The comparisons
are with Stonewater's audited accounts for the year ended 31 March
2019.
Highlights
- S&P A+ rating reaffirmed with a stable outlook
- Regulator of Social Housing maintains Stonewater G1/V1 rating
- Turnover flat at GBP189.00m (2019: GBP190.72m)
- Operating costs GBP121.97m (2019: GBP118.25m)
- Surplus on disposal of fixed assets GBP28.19m (2019: GBP9.42m)
- Operating surplus up 22% to GBP80.83m (2019: GBP65.80m)
- Operating margin 28% (2019: 30%) (excludes surplus on disposal of fixed assets)
- Surplus for the year GBP42.30m (2019: GBP22.38m)
- Strong liquidity position maintained with GBP53m bond issue,
additional RCFs of GBP125m and US private placement of GBP75m
- 33,271 homes owned and managed (2019: 32,354)
- 654 homes completed (2019: 548)
- Acquired 731 homes from Southern Housing Group. All the homes
are located in our key strategic growth areas of Wiltshire,
Oxfordshire and Berkshire
Commenting on the results, Nicholas Harris, Chief Executive at
Stonewater, said: "We are pleased to report a good set of results
and a stable financial position, endorsed by a strong investment
grade A+ rating from Standard & Poor's. This financial position
- alongside the continued G1/V1 rating from the Regulator of Social
Housing - provides a solid foundation to deliver our Vision 'for
everyone to have the opportunity to have a place that they can call
home'.
"We are living in unprecedented times, with the impacts of
coronavirus on economies worldwide and forecasts of a global
recession. However, as a leading social housing provider we entered
the crisis in a position of relative financial strength. We had
robust stress testing in the run up to Brexit, which has meant we
have established a range of mitigations in the event of any
financial distress and on our surplus, which looks beyond
COVID-19.
"One thing we know and accept is that there is no going back to
'normal'. Out of these extraordinary events, we're navigating a new
way forward. We've already responded by adapting our services and
ways of working, reviewing our plans and assessing how we can
support our customers, our communities and our business to get
through this in the best shape possible. It is a dynamic situation,
however, we are in a strong position, having already invested
significantly in technology, mobile working and a digitally enabled
approach over the last three years.
"Like our peers in the sector, we face considerable challenges
in the coming months and years and must continue to innovate,
develop with new funding models, and work with stakeholders to keep
delivering affordable homes and investing in communities."
John Bruton, Executive Director - Finance at Stonewater , said:
"Despite the challenging backdrop, we have prudently explored our
funding options in the past 18 months and concluded several
transactions to support our business plan objectives.
"Our turnover in 2019-20 decreased slightly due to a drop in
income from first-tranche sales of shared ownership properties, but
rental income increased due to the handover of 654 new homes (2019:
548). Our operating costs increased by GBP3.5m, mainly due to an
impairment, additional bad debt provision and increased
professional fees due to a stock condition survey of the planned
maintenance programme.
"The increase in surplus on disposal of fixed assets is due to
large sector sales that took place in 2019-20, and the Voluntary
Right to Buy pilot scheme in the Midlands in which Stonewater
participated. The surplus generated for 2019-20 will continue to be
reinvested in our development programme - which will grow to 1,500
homes a year by 2022-23 - and in further enhancing our systems to
continue to provide excellent customer service.
"181 shared ownership properties were sold in the year. This is
less than the 203 anticipated due to delayed handovers. The margin
was, however, higher than anticipated at 17.5%. Our assessment of
the recoverable amount of all properties held for sale at 31 March
was in excess of cost.
"In the three months to 30 June 2020, 26 shared ownership units
were sold and of 104 properties available for sale, 48 were
reserved or under offer. In addition, in response to COVID-19, we
have also reduced our expectation about the recovery of rent
arrears across all our rental stock."
Link to the full audited accounts on Stonewater's website:
https://www.stonewater.org/about-us/investors-information/
Key indicators from audited accounts 2019-20:
Consolidated statement of comprehensive 2020 2019
income
GBP'000 GBP'000
---------- ----------
Turnover 189,001 190,724
---------- ----------
Operating costs (121,979) (118,255)
---------- ----------
Cost of sales (14,390) (16,085)
---------- ----------
Surplus on disposal of fixed
assets 28,198 9,422
---------- ----------
Operating surplus 80,830 65,806
---------- ----------
Operating margin excluding surplus
on disposal of fixed assets
(%) 28% 30%
---------- ----------
Net interest (33,209) (42,053)
---------- ----------
Movement in fair value of non-hedging
instruments (5,315) (1,368)
---------- ----------
Surplus for the year 42,306 22,385
---------- ----------
Actuarial gains/(losses) on
defined benefit schemes 17,321 (6,922)
---------- ----------
Net impact of the initial recognition
of multi-employer defined benefit
scheme - (10,876)
---------- ----------
Movement in fair value of hedging
instruments (13,812) 10,601
---------- ----------
Total comprehensive income for
the year 45,815 15,188
---------- ----------
Statement of financial 2020 2019
position
GBP'000 GBP'000
------------ ------------
Tangible fixed assets
- housing properties 1,887,962 1,776,052
------------ ------------
Other tangible fixed
assets 9,337 8,877
------------ ------------
Net current assets 94,368 79,093
------------ ------------
Total assets less
current liabilities 1,991,667 1,864,022
------------ ------------
Creditors due after
more than one year (1,679,225) (1,577,414)
------------ ------------
Provisions for liabilities
and charges (85) (340)
------------ ------------
Pension scheme liability (16,684) (36,410)
------------ ------------
Net assets 295,673 249,858
------------ ------------
Cash flow hedge reserve (83,252) (69,440)
------------ ------------
Income and expenditure
reserve 378,925 319,298
------------ ------------
Total reserves 295,673 249,858
------------ ------------
For more information, contact:
John Bruton, Executive Director - Finance, Stonewater
John.Bruton@stonewater.org
07764 791004
For more information about Stonewater please visit:
https://www.stonewater.org/media-pack/media-kit/
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END
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