TIDM20SY TIDM20SY

RNS Number : 6249T

Optivo Finance PLC

21 July 2020

Publication of Optivo's Financial Statements for the year ended 31st March 2020

Financial Statements are now available online: https://www.optivo.org.uk/Leaflets-Publications/Financial-statements.aspx

Results are in line with our Preliminary Unaudited Accounts released 26(th) May.

   --    Turnover GBP322m, (2018/19: GBP314m) 
   --    Operating Surplus GBP90m (2018/19: GBP103m) 
   --    Surplus before fair value movements: GBP46m (2018/19: GBP61m) 
   --    92% (2018/19: 94%) of turnover from social housing activities.

The GBP8m increase in turnover was generated principally from rental income from new homes completed and first tranche sales turnover increasing by GBP2m (we had no open market sales in 2019/20).

Operating costs (excluding sales) increased by GBP20m (10%) to GBP224m. Additional fire safety spend and higher routine maintenance costs resulted in a GBP9 million (13%) increase maintenance costs. Service charge costs increased by GBP5 million (22%) and exceeded income of GBP26m, mainly due to additional fire safety spend and fees yet to be recovered. We've also increased the provision for rent bad debts by GBP1.5m, in anticipation of difficulties for our residents in the short term until new Universal Credit claims are approved to support them. Determining that Covid-19 was an impairment trigger we carried out an impairment review on properties held for sale at the year end. We made a small impairment provision of GBP0.7m based on an estimated 10% reduction in sales values. Social housing cost per unit increased by GBP226 / home to GBP4,425.

During 2019/20 we exited the Growth Plan pension scheme and transferred our Social Housing Pension Scheme (SHPS) defined benefit and defined contribution members out of SHPS in to our own Optivo scheme managed by The Pensions Trust.

Optivo invested GBP183m in new homes and GBP20m on improvements and component replacements in existing homes. We completed 838 new homes (all social housing tenures), and had a further 3,064 new homes under construction.

Interest cover (EBITDA-MRI) was 150% and gearing 46% on an historical cost basis.

Optivo will hold a results call for investors at 1130 on Friday 31(st) July. Please register interest with us at treasury@optivo.org.uk .

Contact

Tariq Kazi, Head of Treasury, on 020 803 62293 or Tariq.Kazi@Optivo.org.uk .

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