TIDM54XE
RNS Number : 4516I
A2Dominion Housing Group Ltd
12 August 2021
Publication of Annual Financial Statements 2021
A2Dominion Housing Group Ltd has today published its Annual
Report & Accounts 2020/21, recording a turnover of GBP303.3m
and a net surplus of GBP6.4m.
The full audited financial statements can be found in the
following location:
https://www.a2dominiongroup.co.uk/about/reports-and-accounts
This has been a challenging year for the Group due to the
Covid-19 pandemic. While we continued to provide essential services
throughout and helped to ensure the safety of our customers and
employees, our financial performance has been heavily impacted by
the pandemic with a loss of circa GBP20 million of anticipated
surplus.
While we were able to reopen our construction sites quickly and
safely, social distancing slowed down work and longer build times
delayed the completion of homes for both rent and sale. This
inevitably reduced our revenue and increased our costs. Lower
occupancy rates in our student and key worker accommodation, due to
access restrictions and our decision not to charge rents where
students were unable to occupy their homes, also impacted our
rental income.
Despite the circumstances, we maintained a strong level of
service during the year across the organisation, including at our
extra care services where the residents rely upon our frontline
care workers. We also maintained an uninterrupted repairs service
throughout the year.
Our operating surplus fell by 12.3% from last year to GBP78.4
million, reflecting the higher operating costs from increased
expenditure on our properties, particularly in relation to fire
safety follow-up works. Our operating margin of 25.8% remained
fairly steady, boosted by the operating profits from our
development joint ventures which increased from last year. Our net
surplus outcome of GBP6.4 million has been affected by higher
interest costs and a fall in the values of our investment
properties from last year. The fall in our investment properties is
attributed to values being reduced by future fire safety costs
needed on three of the schemes in our portfolio.
The organisation continues to be financially strong, with our
core business achieving a strong result. Our social housing
lettings delivered a 29.0% margin which, although down on the
previous year, still compares well with our benchmark group. The
Group forecast shows we are well placed in the next few years to
show improved financial performance as well as being able to cope
with any future unforeseen challenges. All banking covenants remain
comfortably met.
Summary Financial Performance
GROUP STATEMENT OF COMPREHENSIVE 2021 2020
INCOME AND EXPENDITURE restated
GBPm GBPm
Turnover 303.3 320.4
Cost of sales (44.1) (57.0)
Operating costs (207.2) (192.1)
Surplus on sale of fixed assets 7.3 9.4
Share of jointly controlled
entity operating profit 19.1 8.7
Operating surplus 78.4 89.4
Operating margin 25.8% 27.9%
Net interest charges (64.8) (62.6)
Change in fair value of investments 0.8 0.5
Movement in fair value of financial
instruments 2.3 (0.1)
Movement in fair value of investment
properties (9.4) (3.9)
Taxation 0.7 2.0
Non-controlling interest (1.6) (1.1)
Net surplus for the year 6.4 24.2
We built 754 homes, 72% of our target of 1,041 but 82% more than
in 2019 (415). This included 153 shared ownership and affordable
rent, 311 private sale (125 in joint ventures) and 290 private rent
homes. We achieved 589 starts on site, which is 89 above our target
of 500 homes. Just under 100 of these are joint venture schemes,
while we are directly developing the rest. We secured detailed
planning permission for 1,168 homes across seven locations and have
sites secured for over 5,000 homes in our development pipeline over
the next five years and beyond.
This year, we achieved customer satisfaction levels of 83% which
is above our target. This score combines our customers'
satisfaction with complaints, repairs and our customer contact
centre services. This achievement can, in large part, be attributed
to the additional focus and resource we placed on customer service
during the pandemic, including calling customers with the greatest
needs and providing reassurance and guidance about our services. As
already mentioned, we also maintained a full repair service
throughout, keeping customers' homes safe and running smoothly.
Darrell Mercer, A2Dominion Group's Chief Executive, said: "T he
pandemic has had a significant financial impact on the organisation
and although we delivered a smaller surplus than expected, we
continue to be financially strong.
"Operationally, we've also continued to deliver hundreds of new
homes and have maintained high customer satisfaction ratings.
"Overall, we are in a very good position and well placed to
deliver improved performance over the next few years."
Other achievements in 2020/21 included:
-- Social value of GBP9m against a target of GBP7m
-- Established a GBP400-million estate services framework to
facilitate safety, remedial and improvement works for A2Dominion
and our partners, including public sector organisations
-- Fourth consecutive Investors in People Gold accreditation (since 2011).
GROUP STATEMENT OF FINANCIAL 2021 2020
POSITION GBPm GBPm
Tangible fixed assets and investments 3,587.5 3,575.6
Current assets 434.9 452.8
Creditors including loans and
borrowings (1,980.6) (1,984.2)
Deferred capital grant (1,081.3) (1,081.6)
Non-controlling interest (1.6) (1.2)
Total reserves 958.9 961.4
A copy of the Annual Financial Statements has also been
submitted to the National Storage Mechanism and will shortly be
available for inspection:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
For further information, please contact:
Ellie Lodge
A2Dominion Housing Group
The Point
37 North Wharf Road
London W2 1BD
Tel: 07860 411202
Email: ellie.lodge@a2dominion.co.uk
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END
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