ao link
Twitter
Facebook
Linked In
Twitter
Facebook
Linked In

You are viewing 1 of your 1 free articles

L&Q completions fall as surplus grows by 50%

Large registered provider L&Q reported a drop of 10% completions in the third quarter of the year, compared with the same period the previous year.

Linked InTwitterFacebookeCard
L&Q’s completions fell by 10% (picture: Nathaniel Barker)
L&Q’s completions fell by 10% (picture: Nathaniel Barker)
Sharelines

Large registered provider @LQHomesMatter reported a drop of 10% completions in the nine months to December 31 2020, compared with the same period the previous year #UKhousing

The 115,000-home housing association saw completions hit 1,763 homes for the nine months to December 2020, down from the 1,997 completed in the same period the year before.

Completions for social housing tenures increased slightly from 982 to 988, while completions for market tenures dropped by 24% from 1,015 to 775.

The figures are in line with L&Q’s strategy of placing greater emphasis on social housing output and moving away from higher-value areas in the South East.

Over the same period, the landlord’s turnover grew by 8% from £638m to £689m, while its post-tax surplus soared by 54% from £121m to £195m.

Waqar Ahmed, group finance director at L&Q, said the results give the organisation “confidence” to improve its end-of-year projections, increasing earnings before interest, tax, depreciation and amortisation (EBITDA) forecasts from £300m to £325m in quarter two of this year to £325m to £350m.


READ MORE

L&Q appoints new chief executiveL&Q appoints new chief executive
L&Q’s man: David Montague reflects on 12 years as chief executiveL&Q’s man: David Montague reflects on 12 years as chief executive
Scammers seek thousands of pounds from individuals for fake L&Q bondScammers seek thousands of pounds from individuals for fake L&Q bond
The last blog: a farewell from L&Q’s chief executiveThe last blog: a farewell from L&Q’s chief executive

Mr Ahmed said: “Our revised projections reflect stronger than expected operational performance during the COVID-19 pandemic, particularly in relation to completions, sales and rent arrears.

“Our projections also reflect the considerable progress that we have made against our stated objective to conserve cash flows through a reduction in capital and operating expenditure.

In October, L&Q increased liquidity via a £250m bond through its Euro Medium-Term Note programme, which achieved the association’s lowest ever rate.

Mr Ahmed said: “Available liquidity at greater than £1.1bn continues to demonstrate our ability to generate cash flow that provides financial resilience and flexibility. Our strong liquidity position leaves us well placed to address future external uncertainty that is supported by the strength of our balance sheet.”

L&Q said it has approved an additional 1,998 residential units during the financial year, bringing total units in the approved development pipeline to 31,916 – down from 50,937 in the same period last year.

The projected cost of the entire development pipeline, which will run until 31 March 3040, is estimated at £5.3bn.

Sign up for our development and finance newsletter

Sign up for our development and finance newsletter
Linked InTwitterFacebookeCard
Add New Comment
You must be logged in to comment.