Orbit Group Limited's Interim Performance Update covering the
six-month period to 30th September
2024
28
November 2024
Orbit Group Limited ('Orbit Group,
'Orbit' or the 'Company'), reports a good half-year
performance*.
Highlights
· Group turnover for the year
to date of £196.0m (2023/24 H1:
£189.2m)
· Operating surplus for the
year to date including sale of fixed assets of £48.3m
(2023/24 H1: £47.7m)
· Surplus for the year to date
of £18.7m (2023/24 H1:
£22.0m)
· 341 new homes
completed against a target of 330,
of which 293 were affordable
· Continued G1 (Governance) and
V2 (Viability) rating from the
Regulator of Social Housing
· Launch of new 2030 Strategy
and Everyday Excellence transformation programme
· Retained HBF 5-Star
housebuilder for second consecutive year
Financial performance
Despite the continued challenging
external environment placing pressure on the property market, sales
are slightly ahead of budget and build completions have
outperformed half-year targets, with 341 homes delivered at
half-year. Rental income, voids and sales of fixed assets are
marginally ahead of budget, with maintenance costs also favourable
due to timings for planned works.
As a result, Group turnover and
operating surplus for the half-year are ahead of budget and,
despite continued upward pressure on costs, operating surplus
percentage remains in line with budget.
Investing in the customer experience
Earlier this year we launched our
2030 Strategy, which sets out the ambition to deliver amongst the
best customer experience of any housing association in the country.
To help us realise this ambition we have launched Everyday
Excellence, a five-year customer-focused transformation and
delivery plan, which will see significant investment in technology,
data infrastructure, people and capability, and the launch of an
omnichannel customer experience. Whilst it is still in the early
stages, programmes of work are already underway, and we have seen a
reduction in open complaints as a result.
Investing in our homes
We remain committed to improving the
quality and energy efficiency of our homes. During this period, we
have invested £57.7m in our homes (2023/24 H1: £43.4) with 85.8% of
our homes now at EPC band C or above, and extensively refurbished
two of our independent living schemes in
Stratford-upon-Avon and Bexley.
Housing fixed assets total £3.23bn
(2023/24 H1: £3.09bn). Net debt at the period end was £1.68bn
(2023/24 H1: £1.58bn) with £0.43bn (2023/24 H1: £0.48bn) of
available liquidity.
Supporting customers
We continued to support customers,
investing £1.3m in our Better Days programme, which provides
customers with a range of support from direct financial help and
grants to mental health and employment and skills support. This has
included the launch of new services with Citizen's Advice Mid
Mercia (CAMM), which offers customers free money management and
energy advice, and with the Family Fund Business Services, which
provides access to funding for essential items and grants to
support a return into employment.
To date, nearly 3,000 customer
support interventions have been achieved and £2m delivered back to
customers through debt management support, grants, food and fuel
vouchers, energy bill reductions, and benefits advice.
Comment from Jonathan Wallbank, Group Finance
Director:
"Orbit remains financially robust
with a strong liquidity position, and continues to invest in our
homes and services, delivering new affordable homes, and providing
customers access to services and support. These results reflect
Orbit's resilience and strength as a business."
Phil Andrew, Group Chief Executive:
"Whilst this is a challenging time
for the sector, our performance remains strong and, with the launch
of our new five-year Strategy and Everyday Excellence
transformation plan, it is an exciting time within
Orbit.
"Our 2030 Strategy and
transformation plan will see us reshape how Orbit works, putting in
place the right structures, culture and capability, systems,
processes, and technology, so we can be more consistent at being
great social landlord and deliver on our ambition to provide
amongst the best customer experience of any housing association in
the country. It will create a more resilience operation that is fit
for the future and that delivers what our customers expect and
deserve from us."
- Ends -
For the latest investors presentation
and the Interim Performance update please visit:
https://orbitgroup.org.uk/investor-hub
* All financial figures for H1
2023/24 and H1 2024/25 are based on unaudited management
accounts.
For
further information or to arrange a meeting, please
contact: investors@orbit.org.uk
/ Lisa Astle, Director of Communications and
Brand, lisa.astle@orbit.org.uk 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.
https://orbitgroup.org.uk/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.