TIDM44EB
RNS Number : 3300Z
London & Quadrant Housing Trust
17 September 2020
London & Quadrant Housing Trust ('L&Q') - Publication of
Financial Statements
L&Q today announces the publication of its consolidated
audited financial statements for the financial year ended 31 March
2020 which show how it has successfully navigated a turbulent year
and made significant investment in homes, services and
communities.
All comparatives are to L&Q's consolidated audited financial
statements for the year ended 31 March 2019 ('2019').
The financial statements can be accessed via the following
link:
https://www.lqgroup.org.uk/about/finance-performance-and-governance/financial-statements/
A copy of this document has been filed with the National Storage
Mechanism.
Highlights
For the year ended 31st March 2020, L&Q performed ahead of
expectations: by achieving turnover of GBP915m (2019: GBP937m) and
an underlying surplus of GBP179m (2019: GBP202m). L&Q's
surpluses will be re-invested back into ensuring the safety of
residents, the quality of homes and services, supporting
communities, and increasing the supply of new social housing.
-- EBITDA was GBP303 million (2019: GBP232 million) and EBITDA
Margin was 26% (2019: 21%). The year-on-year improvement in EBITDA
reflects the prudent financial stabilisation measures that L&Q
implemented as it continued to focus on its priorities.
-- Net debt (excluding issue premium and fair value adjustments)
was GBP5,371 million (2019: GBP4,821 million) with the increase
representing continued investment in the new development of housing
and communities.
-- G1/V1 ratings, the highest possible ratings for governance
and viability, were reaffirmed by the Regulator of Social Housing
in March 2020.
-- L&Q invested GBP225 million (2019: GBP241 million) in
existing homes, with GBP164 million (2019: GBP149 million) spent on
planned and reactive maintenance, and GBP61 million (2019: GBP92
million) on capital improvements. This included GBP37 million
(2019: GBP24 million) implementing additional fire safety
measures.
-- Despite a pause on new development in September 2019, during
the year L&Q completed 2,439 (2019: 2,874) new homes of which
49% are for social housing tenures. L&Q also started on site
with 3,945 new build homes during the last financial year, and
approved an additional 2,947 homes. This brings the total number of
homes in its approved development pipeline to 29,504, of which
20,769 are currently on site, alongside a further 70,614 potential
strategic land plots under our control. At least half of all the
new homes L&Q builds will be for social housing, with a target
of 60% in London.
-- During the year L&Q invested GBP882 million (2019: GBP645
million) in new social housing, as we make progress with our
ambition to tackle the housing crisis. We also invested a further
GBP86 million (2019: GBP333 million) in private housing we develop
ourselves and GBP55 million (2019: GBP84 million) in partnerships
through joint ventures to generate profits to re-invest in the
delivery of social housing.
-- In October 2019 L&Q completed the acquisition of Trafford
Housing Trust (THT). This opens an exciting new chapter for
L&Q, unlocking GBP4 billion investment for 20,000 much needed
new homes across the North West of England, while enabling THT to
accelerate investment in existing homes and community initiatives.
The acquisition results in a credit of GBP235 million to the
statement of comprehensive income to represent the fair value of
THT that brings surplus for the year to GBP414 million (2019:
GBP271 million).
-- L&Q continued its work with the government's Early
Adopters Group, tasked with understanding Dame Judith Hackitt's
post-Grenfell recommendations, and spearheading a vision to create
an industry that puts people's safety first. As part of this group
we have helped to develop a new Building Safety Charter to promote
culture change in the construction and property industries.
-- A review of governance structures was carried out to
recognise the need for customers to have a strong and influential
voice throughout every part of the business. A new Resident
Services Board, led by our Resident Board member Fayann Simpson,
will be convened in the autumn.
-- L&Q's commitment to transforming communities continued
with another GBP7 million invested through the GBP250 million fund
made available to the L&Q Foundation. For every GBP1 invested
in the Foundation it has created GBP3 of social value - helping
people lead independent lives, secure employment and transforming
the fabric of neighbourhoods to create thriving and sustainable
communities.
-- L&Q Living continued to provide care and support services
to people with a wide range of needs, including older people,
people with learning difficulties and mental health needs, and
people affected by homelessness. The CQC rated 100% of our care
schemes as outstanding or good.
Commenting on the results Waqar Ahmed, Group Director, Finance
said:
"L&Q was operating in an extremely challenging and uncertain
environment even before the onset of coronavirus. The true scale of
vital fire safety and building remediation works was becoming
clear, while the housing market remained subdued, in part due to
the political stalemate over Brexit. We took the difficult decision
to pause new development work in September 2019, alongside other
tough financial measures, in order to focus on our customers and
preserve funds for essential services.
As today's results show, the decisive action taken in the last
financial year has paid off. The expected stabilisation in our
finances by year end gave us a firm platform to continue delivering
vital services throughout the pandemic, and a springboard for the
future. This will be crucial over the coming year as we carry out
building safety and remediation works, improve the quality of our
homes and services, support communities and help our most
vulnerable residents.
"It will also help us to put environmental, social and corporate
governance factors at the heart of our investment strategy, and
enable us to invest in Modern Methods of Construction to achieve
our ambitious growth targets and deliver more social housing."
ENDS
This update may contain certain forward-looking statements
reflecting, among other things, our current views on markets,
activities and prospects. Actual outcomes may differ materially.
Such statements are a correct reflection of our views only on the
publication date and no representation or warranty is given in
relation to them, including as to their completeness or accuracy or
the basis on which they were prepared.
For further information, please contact:
James Howell 0300 456 9998
www.lqgroup.org.uk
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END
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