TIDM20SY
RNS Number : 3496P
Optivo Finance PLC
25 May 2018
OPTIVO TRADING UPDATE
On 14 February 2018 AmicusHorizon Finance Plc changed its name
to Optivo Finance Plc. Both Optivo Finance Plc and Optivo had their
A2 credit rating affirmed by Moody's on 1 March 2018.
This is an unaudited trading update for Optivo for the twelve
months ended 31 March 2018 ("2017/18").
Highlights
Comparators in this trading update are the unaudited proforma
results for Optivo for the previous financial year ("2016/17").
Optivo was formed from the amalgamation of AmicusHorizon and
Viridian Housing on 22 May 2017.
Full year 2016/17 results included one-off acquisition gains of
GBP21m as turnover arising from accepting a transfer of engagements
from Southwark and London Diocesan HA and the St Martin's Estate
(Lambeth) stock transfer.
-- Turnover GBP321m (2016/17 GBP347m)
-- Operating surplus GBP119m (2016/17 GBP150m)
-- Surplus before tax and hedge reserve write off GBP99m (2016/17 GBP109m)
-- Deficit before tax and after hedge reserve write off GBP69m (2016/17 Surplus GBP109m)
-- Operating margin 29% (2016/17 35%)
-- Net interest costs GBP42m (2016/17 GBP43m)
Loan restructures in May 2017 caused accounting hedging
relationships with standalone swaps to be broken though the
economic hedging relationships remain. In accordance with FRS102,
because the hedging relationship ceases, the related cashflow hedge
reserve is written back through the Statement of Comprehensive
Income and therefore in to the Income & Expenditure Reserve
during 2017/18.
Operations
At the end of March 2018 our strategic KPI performance were as
follows:
-- A net promoter score of 66 for resident satisfaction (target: 50) - 2018/19 target 56
-- We helped 1,045 people into jobs and training (target: 870) - 2018/19 target 870
-- 42.9% of residents are using our services online (target: 40%) - 2018/19 target 45%
-- 84% of staff feel proud to work for Optivo (target: 70%) - 2018/19 target 75%
-- 75% of staff say Optivo is a great employer (target: 70%) - 2018/19 target 75%.
For our core business of General Needs, Supported Housing and
Housing for Older People operational income KPIs for Optivo for the
year to date were as follows:
March 2018 September 2017
---------------------------------- --------------- ---------------
Total rent arrears of annual rent GBP8.2m, 3.96% GBP7.9m, 3.52%
debit
---------------------------------- --------------- ---------------
Rent arrears of 0 to 4 weeks GBP3.5m, 1.68% GBP3.1m, 1.36%
---------------------------------- --------------- ---------------
Rent arrears of 5 to 6 weeks GBP0.7m, 0.32% GBP0.8m, 0.36%
---------------------------------- --------------- ---------------
Rent arrears of 7 to 12 weeks GBP1.5m, 0.71% GBP1.6m, 1.73%
---------------------------------- --------------- ---------------
Rent arrears of 13 weeks or more GBP2.6m, 1.25% GBP2.4m, 1.07%
---------------------------------- --------------- ---------------
In the financial year to 31 March 2018 the average time to
re-let vacant properties, excluding voids for major works, was 26.5
days. At 30 September 2017 the average for the financial year to
date was 26 days
Out-turn for the financial year ended March 2018 was in line
with expectations and in accordance with Optivo's financial
plan.
Investment and Sales
At 31 March we were in contract to deliver 2,054 homes
(September 2017: 1,819) across 51 sites, with remaining capital
commitments on these sites of GBP363m (September 2017: GBP321m). We
had 65 unsold Shared Ownership 1(st) tranche properties (September
2017: 39), and no open market sale unsold units (September 2017:
3).
Liquidity
Optivo issued a GBP250m 30 year secured bond in March at a
coupon of 3.283% (GBP100m was retained for future sale). At the end
of the year we had available undrawn facilities of GBP606m (March
2017: GBP191m) and GBP82m (March 2017: GBP87.5m) unencumbered cash
and deposits available. Our outstanding net debt balance was
GBP1,007m (March 2017: GBP920m).
Appointments
We have made two new appointments to our Executive Team.
-- Suzie Woodhams joined as Executive Director People and
Communications in January 2018, replacing Kate Dodsworth
-- Kerry Kyriacou joined as Executive Director Development and
Sales in May 2018, replacing Mark Miles-Lea.
Unaudited Financial Results
Unaudited financial results for year to 31 March 2018 are below,
together with comparatives for the full year to 31 March 2017.
Statement of Consolidated Income 2017/18 2016/17
(GBPm) (GBPm)
---------------------------------- -------- ---------
Turnover 321 347
Cost of Sales (22) (23)
Operating Expenditure (204) (203)
Surplus on disposal of fixed
assets 24 29
---------------------------------- -------- ---------
Operating Surplus 119 150
---------------------------------- -------- ---------
Surplus on commercial property
disposals - 1
Interest receivable 1 1
Interest and financing costs (42) (44)
Fair value movements 22 1
---------------------------------- -------- ---------
Surplus before taxation 99 109
---------------------------------- -------- ---------
Hedge reserve write off (168) -
---------------------------------- -------- ---------
Deficit before taxation (69) 109
---------------------------------- -------- ---------
Notes:
-- The full year figures exclude movements in the fair value of
investment properties and pension adjustments. These items are
being reviewed as part of year end accounting processes
-- Fair value movements represent the movement on Optivo's unhedged instruments.
Next Update
We will publish the audited financial statements in July 2018.
The re-valuation of property security used as asset cover on the
2043 public bond will be uploaded to our website in June 2018.
Notes
Optivo is a charitable organisation that was formed on 22 May
2017 when AmicusHorizon Ltd amalgamated with Viridian Housing. It
currently manages 44,000 affordable homes across London, the South
East and the Midlands with a target to start building 1,500 new
homes by 2020-21.
Further information on Optivo is available on our website
https://www.optivo.org.uk/about-us/investors.aspx
Contact: Tim Luckhurst, Head of Treasury on 020 8726 8713 or
tim.luckhurst@optivo.org.uk
DISCLAIMER
This update contains certain "forward-looking" statements
reflecting, among other things, our current views on markets,
activities and prospects. Actual outcomes may differ materially.
Such statements are a correct reflection of our views only on the
publication date and no representation or warranty is given in
relation to them, including as to their completeness or accuracy or
the basis on which they were prepared. Financial results quoted are
unaudited. No reliance should be placed on the information
contained within this update. We do not undertake to update or
revise such public statements as our expectations change in
response to events. This update is neither recommendation nor
advice. This is not an offer or solicitation to buy or sell any
securities.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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