TIDM14MD
RNS Number : 1679T
Stonewater Funding PLC
22 November 2021
Mid-year performance update
Released: 22/11/2021
Stonewater Funding plc
Stonewater Funding plc
STONEWATER H1 2021/22 PERFORMANCE UPDATE
Stonewater's Mid-Year Performance Update covering the period to
30 September 2021
Financial performance*
The Group is pleased to report a continuing sound financial
performance. The unaudited management accounts for the six months
to 30 September 2021 show a turnover of GBP113 million (H1 2020/21:
GBP96 million), delivering an operating surplus of GBP40 million
(H1 2020/21: GBP34 million). Interest cover was 251% (H1 2020/21:
248%).
The operating surplus for the year to March 2022 is forecast to
be in line with expectations.
The Group's total capital investment in existing homes during
the period was GBP4.7 million, an increase from GBP2.9 million for
the same period last year (which reflected the Covid -- 19-related
restrictions at the time). Total capital investment in new homes
during the period was GBP76 million (H1 2020/21: GBP64 million).
Housing Fixed Assets stood at GBP2,124 million, up from GBP2,037
million as at 31 March 2021. Drawn debt was GBP1,300 million, up
from GBP1,100 million as at 31 March 2021. Cash and available
facilities stood at GBP680 million (31 March 2021: GBP548 million)
with committed and fully secured loan facilities at GBP1,655
million (31 March 2021: GBP1,509 million).
In May 2021 S&P Global Ratings affirmed its rating of
Stonewater as A+ with a Stable Outlook. On 31 March 2021, following
an In-Depth Assessment, the Regulator of Social Housing confirmed
its grading of Stonewater as G1/V1.
https://www.stonewater.org/media/5538/20210519-uksocialhousingproviderstonewateraratingaffirmedoutlookstable.pdf
https://www.gov.uk/government/publications/regulatory-judgement-stonewater-limited/current-regulatory-judgement-stonewater-limited-31-march-2021
Financing
Stonewater issued a GBP250 million sustainability bond on 3
September 2021, the first issue under its EMTN programme. The
proceeds were lent to the Registered Providers in the Stonewater
group where GBP98 million was used to repay existing term and
revolving loan facilities.
Furthermore, on 15 September a deferred sale of GBP28m of
retained bonds from a previous issue settled.
Operational performance
Overall customer satisfaction was 83%, slightly below the target
of 84%.
Rent arrears are stable at 5.31% (March 21: 5.38%) and remain
below our target. We continue to provide a range of well -- used
support services to help our residents sustain their tenancies as
outlined in our ESG report published earlier this year
https://www.stonewater.org/media/5617/esg-report-2020-21-final.pdf
.
The Group completed 430 new homes during the first half of the
year (H1 2020/21: 217), all of which were for affordable tenures,
and started work on 481 new homes. With the progress in the
development programme, the pipeline is now for a further 5,100
homes by March 2025. Shared ownership sales generated an income of
GBP18.0 million (H1 2020/21: GBP6.9 million) with a margin of 17%
(H1 2020/21: 19%).
186 tenanted housing properties were acquired from Bromford
Housing Group on 28 June.
Supporting our residents and communities
The Group continues to support our customers in a range of ways.
For instance, our charity partner, Longleigh Foundation, continues
to offer grants that make a huge difference to people struggling
with severe financial hardship.
On cutting carbon emissions, Stonewater is committed to
improving the efficiency of homes and we are pursuing a
carbon-neutral approach to new developments. The Group is also
leading the way with retrofitting and energy efficiency through
projects such as the Oxford Energy Superhub and our work with
Passivhaus.
Finally, w orking alongside Guinness, Stonewater has been named
by Homes England as one of its largest strategic partners. The two
organisations will be provided further funding of circa GBP250
million to build 4,180 high-quality, affordable homes by 2029. This
is in addition to the GBP224 million awarded to the strategic
partnership by Homes England in 2018 to build 4,500 homes by
2025.
Management
In accordance with the succession plan previously announced,
Anne Costain assumed the responsibilities of Executive Director -
Finance on 1 October. Following a selection process, Keith Reed has
stepped up to the role of Director of Financial Operations and
deputy to Anne.
*Q4 2020/21 figures are based on audited financial statements as
of March 31, 2021.
ENDS
For more information, please contact:
Keith Reed, Director of Finance Operations, Stonewater -
keith.reed@stonewater.org
Wendie Gardiner, Head of Communications, Stonewater -
wendie.gardiner@stonewater.org
Disclaimer
The information contained herein (the "Trading Update") has been
prepared by Stonewater Limited (the "Parent") and its subsidiaries
(the "Group"), including Stonewater Funding plc, (the "Issuer") and
is for information purposes only.
The Trading Update should not be construed as an offer or
solicitation to buy or sell any securities issued by the Parent,
the Issuer 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 Trading 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 Trading 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 Trading Update. The information in the Trading
Update is subject to verification, does not purport to be
comprehensive, is provided as at the date of the Trading 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 Trading Update is or should be relied
on as a promise or representation as to the future. No statement in
the Trading 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 Trading Update (and whether any
information has been omitted from the Trading Update). The Trading
Update does not constitute legal, tax, accounting or investment
advice.
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END
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November 22, 2021 09:55 ET (14:55 GMT)
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