Clarion Funding plc

CLARION HOUSING GROUP Q1 2022/23 PERFORMANCE UPDATE

Clarion Housing Group's Quarterly Performance Update covering the period to 30^th June 2022

Clarion experienced a serious cyber security incident on 18^th June 2022. In line with our incident processes and protocols, we took part of our IT network offline to minimise the impact of the attack. While our quarterly performance update would normally include Q1 figures up to 30^th June, the status of some of our systems means we cannot reliably report all of the usual data for June. The data used in this update is therefore for April and May 2022, unless stated otherwise.

Financial performance

The Group is pleased to report a continuing strong financial performance. The unaudited management accounts for the first two months to 31^st May 2022 show a turnover of £169.2 million (period to 31^st May 2021/22: £164.8 million), delivering an operating surplus of £47.5 million (period to 31^st May 2021/22: £47.5 million).

The Group's total capital investment in existing homes during the first two months of the year was £13.5 million, a decrease from £16.8 million during the same period in 2020/21.

Housing Fixed Assets stood at £8.17 billion as at 31^st May 2022, up from £7.90 billion for the full financial year ending 31^st March 2022.

As at 30^th June 2022 the Group retains strong liquidity of £1.10 billion (31^st March 2022: £1.12 billion), with committed and fully secured loan facilities of £5.43 billion (31^st March 2022: £5.44 billion). Drawn debt was £4.39 billion at 30^th June 2022, down from £4.45 billion at 31^st March 2022.

Moody's affirmed the Group's credit rating at A3 in June following an update to include assignment of ESG scores.

Operational performance

The Group continues to surpass its customer satisfaction targets, with repairs satisfaction measured at 90.6% (target: 85%) for April and May. Overall customer satisfaction for the same period measured at 84.5% (target: 80%).

Rent arrears stood at 6.0% during April and May, remaining within our Covid-adjusted tolerance. We continue to provide a range of support services to help our residents manage their money, maximise their income and sustain their tenancies.

The Group completed 474 new homes during the full quarter to June, 88% of which were for affordable tenures. It began construction work on 126 new affordable homes and a further 113 for private sale, and sold a total of 259 homes.

Supporting our residents and communities

During April and May, the Group's charitable foundation Clarion Futures helped 430 people into work, 742 people into training and a further 12 people were supported to set up their own business.

Up to 16^th June, a total of 2,884 actions were taken by the Money Guidance Team and its external partners to help residents manage their money more effectively.

Through its grants programme, Clarion Futures allocated £65,158 to local community projects during the quarter.

Building new homes

In April, Clarion Housing Group announced details of another record-breaking year for new housing completions. During the 2021/22 financial year, it built 2,276 homes - more than 80% of which were for affordable tenures. Four in ten of all new homes built last year were for social or affordable rent, with a further 1,000 additional homes for shared ownership.

Also in April, the Group secured planning permission to transform vacant land west of Leeds into a 1,400-home scheme of more than 500 affordable units.

In May, Merton Borough Council approved detailed plans for the first phase of new homes at the Group's regeneration of its Eastfields estate. The estate is one of three being transformed as part of a landmark £1.3bn project in partnership with the council and work on the first 201 new homes will begin after the successful appointment of a contractor.

ENDS

For more information, please contact:

Andrew Hill, Head of Treasury, Clarion Housing Group - 0208 315 3239 / [email protected]   

Lucy Pond, senior communications manager, Clarion Housing Group - 0207 378 5555 / [email protected]

Disclaimer

The information contained herein (the "Trading Update") has been prepared by Clarion Housing Group Limited (the "Parent") and its subsidiaries (the "Group"), including Clarion Funding plc, Affinity Sutton Capital Markets plc, Circle Anglia Social Housing Plc and Circle Anglia Social Housing 2 Plc (the "Issuers") and is for information purposes only.

The Trading Update should not be construed as an offer or solicitation to buy or sell any securities issued by the Parent, the Issuers or any other member of the Group, or any interest in any such securities, and nothing herein should be construed as a recommendation or advice to invest in any such securities.

Statements in the Trading Update, including those regarding possible or assumed future or other performance of the Group as a whole or any member of it, industry growth or other trend projections may constitute forward-looking statements and as such involve risks and uncertainties that may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements. Accordingly, no assurance is given that such forward-looking statements will prove to have been correct. They speak only as at the date of the Trading Update and neither the Parent nor any other member of the Group undertakes any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments, occurrence of unanticipated events or otherwise.

None of the Parent, any member of the Group or anyone else is under any obligation to update or keep current the information contained in the Trading Update. The information in the Trading Update is subject to verification, does not purport to be comprehensive, is provided as at the date of the Trading Update and is subject to change without notice.

No reliance should be placed on the information or any projections, targets, estimates or forecasts and nothing in the Trading Update is or should be relied on as a promise or representation as to the future. No statement in the Trading Update is intended to be an estimate or forecast. No representation or warranty, express or implied, is given by or on behalf of the Parent, any other member of the Group or any of their respective directors, officers, employees, advisers, agents or any other persons as to the accuracy or validity of the information or opinions contained in the Trading Update (and whether any information has been omitted from the Trading Update). The Trading Update does not constitute legal, tax, accounting or investment advice.

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