REG - Accent Capital PLC - Annual Financial Report

AccentAnnouncement

08/08/2023 18:15

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RNS Number : 6909I  Accent Capital PLC  08 August 2023

Accent Capital PLC

8 August 2023

Accent Group Limited(1) Announces Financial Results for 2022/23

Accent's financial performance remains strong for the year ended 31 March
2023. When compared to the challenges of the 2022/23 financial year, the
financial outturn and the continued delivery of its strategic objectives
places Accent in a strong position.

Following continued growth and development, turnover grew to £115.3m (2022:
£107.9m restated) in the financial year to 31 March 2023, with a reported
headline operating margin of 28.1%. When considered against the backdrop of
the war in Ukraine placing pressure on the supply chain, the mini budget,
unprecedented inflation and the cost of living crisis, this is notable.

In the year to March 2023, Accent adopted a revised accounting policy in
respect of housing properties. All properties are now restated at their
historic cost as opposed to Existing Use Social Housing Value. This places
Accent in a more comparable position with the wider sector and better reflects
the impact of its new developments. At 31 March 2023 housing properties were
recorded at £845.0m an increase on the prior year of £64.3m when compared to
31 March 2022.

Development contributed £4.0m (grant) and £2.7m (profit) on first tranche
and open market sales to the overall results of the business. Land led schemes
were developed to the highest standards (EPC A) and as a result sales remained
strong generating financial capacity to underpin the ongoing commitment to
providing quality homes to support the housing crisis in the UK.

Total comprehensive income for the year is £27.6m (2022: £23.6m restated)
which is inclusive of a £6.1m net gain on pension schemes (2022: £9.0m gain)
following actuarial valuation.

Throughout the 2022/23 financial year Accent continued to monitor liquidity
and actively manage its treasury position. At 31 March 2023, £157.5m was held
in cash and liquid reserves, and a further £6.8m held in constructive trust.

In terms of key ratios for the 2022/23 financial year:

·      EBITDA-MRI(2)/Turnover (excluding grants) was 29.2% compared to
the restated 2021/22 figure of  24.2% in 2021/22

·      EBITDA-MRI/Interest expense increased to 2.46x from 2.03x and
Debt/EBITDA-MRI reduced from 21.3x to 18.7x.

Speaking of the results, Executive Director of Finance & Business Services
Kirsty Spark said:

"2022/23 has been another challenging year for the housing sector however
Accent has proven itself to be resilient and has reported outstanding
operating results in very difficult circumstances. 2023/24 looks likely to be
another challenging year, however we are confident that Accent is well placed
to continue delivering high quality services for our customers."

Chief Executive, Paul Dolan added:

"Given the dynamic and volatile operating environment, we are pleased to have
sustained strong financial performance throughout the year. Our financial
strength is also evidenced by our latest In-Depth Assessment (IDA) G1/V1
rating and the reaffirmation of our A (with a stable outlook) credit rating
from Standard and Poors (S&P).

This strong financial standing and the strength of our governance framework
provides assurance that we can continue delivering our strategic objectives at
pace, invest in our existing homes and build new, affordable homes in areas of
housing need.

Please follow the link below to view the Annual Report & Financial
Statements for Accent Group Limited. The Annual Report & Financial
Statements for Accent Capital PLC will appear on the investors' page of
Accent's website shortly after the AGM to be held on 5 September 2023.

https://www.accentgroup.org/media/5766/accent-group-2022-23-financial-statements.pdf
(https://www.accentgroup.org/media/5766/accent-group-2022-23-financial-statements.pdf)

Issued by Accent Housing, Shipley, West Yorkshire. For more information,
contact Stacey Healey, Brand and Communications Strategist on 03003739694 or
email press.office@accentgroup.org.

Editor's Notes

We provide homes and services to around 42,000 customers in more than 20,700
homes across the north, east and south of England.

 

We believe that everybody has the right to a safe, sustainable and affordable
home. This has been our belief since we formed in 1966.

(1) Accent Group Limited is the ultimate holding company for Accent Capital
PLC.
(2) Earnings before interest, depreciation and amortisation - major repairs
included.

 

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