TIDM61DS
RNS Number : 0301J
Orbit Capital PLC
17 December 2020
Orbit Group Limited's Interim Performance Update covering the
six-month period to 30(th) September 2020
Throughout the first half of the financial year, we have focused
efforts on our Covid-19 pandemic response, prioritising the
protection of our customers, our people and our finances.
Our robust incident management plan and IT systems ensured
continued operation of our services and the remobilisation of our
construction teams, ensuring our operations were largely
unaffected. Our teams conducted over 15,000 wellbeing calls to our
most vulnerable customers, our employees were not furloughed, spend
was controlled and we increased available facilities.
Throughout, our commitment to customer and employee safety, our
business agility and efficient planning, has enabled us to meet
these changing circumstances.
In addition, we successfully issued a GBP300m 18-year bond. This
funding meets our corporate finance objectives and supports our
vision at a time when affordable, quality homes and services are
needed more than ever.
Highlights
-- Turnover for the year to date was GBP151.2m (2019/20 Q2: GBP153.5m)
-- Operating surplus for the year to date was GBP51.0m (2019/20 Q2: GBP58.8m)
-- The surplus for the year to date was GBP24.1m (2019/20 Q2: GBP26.8m)
-- Purchase of 128 homes located in Oxford from Bromford Housing Group (October 2020)
-- Up to 20(th) September 2020, Orbit completed 240 new homes of
which 192 were affordable (2019/20 Q2: 622),
Performance Update
Despite the challenges of the pandemic, the performance of the
core social housing business has remained consistent. Due to the
lockdown, there has been reduced market sales activity resulting in
turnover and operating surplus being lower than for the same period
last year. There were 240 new homes completed in the first six
months of the year.
In the first six months, there were market sales of 61 homes and
sales of the initial tranche of shared ownership properties of 148
homes. Both of these figures are in excess of the 2020/21 budget
(following the pandemic). Forward sales are also looking strong
with 238 reservations at 30(th) September 2020 (109 market sale
homes and 129 first tranche shared ownership homes).
Housing fixed assets total GBP2.7bn. Net debt at the period end
was GBP1.4bn with GBP0.4bn of available liquidity. The issue of a
GBP300m bond in November has meant that the liquidity position has
strengthened. This level of liquidity supports both short- and
medium-term vision.
Purchase of Oxford Properties
In October, Orbit completed the purchase of 128 homes in Oxford
from Bromford Housing Group. The newly acquired homes consist of
104 rented homes, 10 supported housing properties, eight shared
ownership homes and six leasehold homes, for a total of 128
properties.
Credit Rating
As part of a sector-wide review, Moody's confirmed Orbit's A3
rating and stable outlook on 23(rd) October 2020. Moody's quoted
Orbit's credit strengths as including ample liquidity, a strong
market position, adept governance and risk management.
Comment from Jonathan Wallbank, Group Finance Director: "These
are positive results during unprecedented times, reflecting Orbit's
resilience and strength as a business. Protecting our customers,
our people and our finances remains our priority for the second
half of the year whilst also delivering against our strategic
objectives."
ENDS
For further information please contact: Lisa Astle, Head of
Corporate Communication, 07775 633957
Disclaimer: The information contained herein (the "Interim
Update") has been prepared by Orbit Group Limited (the "Parent")
and its subsidiaries (the "Group"), including Heart of England
Housing Association Limited, Orbit South Housing Association
Limited, Orbit Capital PLC (the "Issuers") and is for information
purposes only and has not been subject to external audit.
The Interim 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 Interim 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 Interim 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 Interim Update. The information in the Interim
Update is subject to verification, does not purport to be
comprehensive, is provided as at the date of the Interim 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
Interim Update is or should be relied on as a promise or
representation as to the future. No statement in the Interim 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 Interim Update (and whether any
information has been omitted from the Interim Update). The Interim
Update does not constitute legal, tax, accounting or investment
advice.
www.orbitgroup.org.uk/about-us/partner-with-us/investor-hub
Note: Figures quoted in the update are based on unaudited
management accounts which are subject to review and further
adjustments, for example in the areas of pensions, investment
property valuation and taxation.
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END
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