L&Q increases completions by 11% amid ‘better than expected’ financial performance

Waqar Ahmed, group director – finance at L&Q, said: “We have delivered a material improvement in EBITDA margins, interest coverage and debt metrics that are ahead of Q3 guidance and reflect stronger than expected financial performance during the COVID-19 pandemic, particularly in relation to completions, sales and rent arrears.

“While the pandemic has impacted our repairs and maintenance service, we invested £186m (2020: £231m) in our residents’ homes, including £25m (2020: £35m) implementing additional fire measures.”

Fiona Fletcher-Smith, L&Q’s new chief executive, recently said the landlord would be cutting its annual housebuilding target by 70% in order to deal with escalating fire safety costs.

The landlord had previously been targeting 10,000 new homes a year but has revised this down to 3,000 annually, with the most recent results showing a shortfall of just over 300 new homes.

Mr Ahmed continued: “The expectation, as reflected in our forward guidance for the year ending 31 March 2022, is that we divert a greater level of expenditure towards our residents’ existing homes as we implement our five-year corporate strategy that sets out how we will put our existing customers first, ensuring that their homes are safe, high quality and supported by excellent services in thriving communities.”