REG - Town and Country TCHG Capital plc - Half-year Trading Statement

S&P GlobalAnnouncement

07/12/2023 16:15

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RNS Number : 0481W  Town and Country Housing Group  07 December 2023

Town and Country Housing: First Half Year Trading Statement

 

7 December 2023

 

Town and Country Housing (TCH) is today issuing its consolidated unaudited
trading statement, for the first half of the financial year ending 31 March
2024.

                                           6 months to Sept 23                       6 months to Sept 22
                                                   £000                                      £000
 Operating surplus                               17,165                                    11,333
 Surplus on disposal of assets                     2,777                                     1,840
 Net interest payable                     (13,539)                                     (8,101)
 Taxation & non-controlling interest                     -                                         -
 Surplus                                           6,403                                     5,072

 

Note: No assumption is made about any gain on revaluation of investment
properties in either year, as revaluation is undertaken at year end.

 

TCH became part of Peabody Group on 9 May 2019 and will continue as an
operating subsidiary. On 4 April 2023 TCH received via a statutory transfer of
undertaking Rosebery

Housing Association. TCH's operational geography now extends from Kent and
Sussex to include Surrey supporting 13,000 homes. Rosebery's results are
included for the six months to September 2023, generating an operating surplus
of £3,462k. In June 2023 following an approach from the regulator we acquired
5 extra care schemes (252 homes) from Rapport Housing and Care.

 

Rental income from the core business continued to perform strongly with
collection rates similar to the previous year. Maintenance costs are £3.9m
higher than in 2022. This is due to an increased number of responsive repairs
jobs with high material cost inflation. There was also higher void repair
costs and additional damp, mould, and condensation intervention costs.

 

Shared ownership 1(st) tranche sales and private sales generated a surplus of
£2.3m which was £1.7m above 2022. This is due to the timing of handovers and
sales in 2022 which were skewed to the 2(nd) half of the year.

 

At 30 September 2023 TCH had 36 properties for sale. 24 properties were
reserved. Of the remaining 12 available properties none have been void for
greater than 6 months.

 

Disposal of assets provided a further £2.8m of surplus.

 

Net interest payable was ahead of 2022 which was due to the inclusion of
Rosebery's debt, higher interest rates and higher debt (funding new
developments).

 

S&P Global Ratings maintained Peabody's rating ('A-') negative outlook
following a recent review. Town & Country Housing's rating follows that of
Peabody's as S&P considers TCH to be a core subsidiary.

 

Future Information Releases

 

The next financial reporting will be the statutory financial statements which
we expect to release in August 2024.

 

Further Information

 

For further information contact Mike Hyams, Regional Finance Director at
mike.hyams@tch.org.uk (mailto:mike.hyams@tch.org.uk)

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