REG - Flagship Finance PLC - Flagship trading update

Brown & BrownAnnouncement

05/07/2023 10:45

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RNS Number : 9749E  Flagship Finance PLC  05 July 2023

Flagship Housing Group Limited (Flagship) trading update, draft financial
performance for the year ended 31 March 2023 and Regulator grading update

 

Flagship, the parent company of Flagship Finance Plc and a Registered Provider
of Social Housing that owns and manages 32,721 homes in the east of England,
announces its unaudited trading highlights for the 2022/23 financial year.

 

Flagship headline unaudited results and highlights:

 

 ·                     Owns and manage 32,721 homes (32,192 as of 31 March 2022)
 ·                     Credit rating of A2 (Negative) from Moody's
 ·                     Delivered 635 new affordable homes
 ·                     Financial performance remains robust with annual turnover increasing by 8.2%
                       to £250.9m (2021: £231.9m)
 ·                     Despite facing inflationary cost pressures, annual operating surpluses were
                       maintained at £83m
 ·                     Delivered an operating margin, including gains on disposal, of 33.1% (2022:
                       35.9%)
 ·                     All financial covenants met
 ·                     Year end cash of £59m and undrawn facilities of £232m

 

Message from Interim Chief Financial Officer

Jonathan McManus, Interim Chief Financial Officer at Flagship, said: "The past
financial year has seen a number of challenges with high levels of cost
inflation and increased expenditure on repairs and maintenance to ensure we
maintain compliant high-quality affordable homes. Despite these challenges we
have delivered a really strong set of financial results which continues to be
underpinned by our healthy liquidity position.

We were pleased to maintain our A2 credit rating with Moody's.

We have continued to deliver more affordable homes to the communities we
operate in and have increased the percentage of homes that meet EPC-C, which
remains a key focus for delivery by 2030."

Regulator rating update

 

The Regulator of Social Housing has today downgraded Flagship Group's
governance rating from G1 to G2. The Regulator has confirmed its existing
compliant V2 grade for viability and that its financial plans are consistent
with and support our financial strategy, continuing to meet our financial
covenants.

 

A rating of G2 is compliant and means that Flagship meets the Regulator's
governance requirements however Flagship will be focussed on returning back to
a G1 rating.

 

For more information, please contact:

Jonathan McManus, Interim Chief Financial Officer, Flagship Group - 0845 258
6219

 

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