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    OHG   GB00BLF79495

ONE HERITAGE GROUP PLC

(OHG)
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One Heritage Group plc : Full year results for the year ending 30 June 2021

10/20/2021 | 02:01am EST

One Heritage Group plc (OHG) One Heritage Group plc: Full year results for the year ending 30 June 2021 20-Oct-2021 / 07:00 GMT/BST Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

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20 October 2021

ONE HERITAGE GROUP PLC

(the "Company" or "One Heritage")

Full year results for the year ending 30 June 2021

One Heritage Group PLC (LSE: OHG), the UK-based residential developer focused on the North West of England is pleased to announce its audited results for the year ended 30 June 2021.

Financial highlights ? The Group raised a gross amount of GBP1.5 million via the Initial Public Offering ("IPO") in December 2020and a subsequent placing and subscription in February 2021 raised GBP548,500. ? Generated revenue of GBP0.5 million from a combination of development management and Co-living. The formerincludes fees from two of its three development management agreements. ? Acquired two additional sites, being Bank Street, Sheffield and St Petersgate, Stockport, for GBP1.6million. ? Commenced development of Bank Street, Sheffield along with Oscar House, Manchester and Lincoln House,Bolton, investing GBP1.7m, in addition to site costs, prior to the year end. ? Signed two construction finance agreements for a gross amount of GBP5.5 million, to be drawn down over theperiod of development for the Bank Street, Sheffield and Oscar House, Manchester projects. The maximum term forboth loans is 18 months. ? Increased the size of its Group loan facility with its major shareholder, One Heritage PropertyDevelopment Limited, from GBP5.0 million to GBP7.5 million.

Operating highlights ? The Group successfully listed on the Standard List of the London Stock Exchange on 23 December 2020. ? Started construction on three developments set to complete in the 2022 financial year, with two remainingdevelopments expected to complete in Q3 2022. These combined comprise a total Gross Development Value (GDV) ofGBP26.3m. ? Secured pre-sales or reservations on 63 out of the 171 existing development properties, including 100% ofthe Oscar House development after securing an agreement over all the units. ? Started the process of building a property services division, which accelerated post year-end with theliquidation of two subsidiaries of our associate business, One Heritage Complete.

Outlook ? The Group is expecting to complete on three of its five developments in the financial year and has apipeline of new developments into which to reinvest the proceeds. ? The latest development management agreement, on the North Church House, Sheffield development, was signedin June 2021 and the Group is targeting more in the financial year. ? Co-living property services are expected to expand in the coming period as the Group internalises moreservices that were previously undertaken by our associate, One Heritage Complete Limited, and as it prepares forthe completion of its developments. ? Whilst the UK Construction Industry is currently experiencing certain supply chain related challenges,the Group is not aware of any specific circumstances that would delay its project completions.

Jason Upton, Chief Executive Officer said:

"I am exceptionally proud of our employees and the substantial progress we have made. This is the first annual report released by the Group as a listed business and it gives a comprehensive view of the performance of the business and our strategy going forward. As we move into the new financial year, we have set out five strategic priorities that will drive how we build our business. The environment is challenging but the Group continues to mitigate against this through the agility, flexibility and innovation of its employees and through its relationships with other stakeholders."

Chief Executive's statement

We are pleased to report excellent progress with our strategy over the last 12 months despite the challenges caused by the global pandemic, lockdown restrictions and industry cost pressures. In adapting well to these challenges, the Group demonstrated our resilience and agility and this has provided us with a strong foundation which bodes well for the future. Importantly, we have continued to expand during this period, adding more developments and a number of exceptional colleagues as we seek to generate strong returns for our shareholders.

The Group's headline results reflect our infancy as a business with our first development not due to finish until early 2022. The Group's financial position remains robust with a reported NAV per share of 8.4p, cash and cash equivalents of GBP0.7 million and GBP5.75 million of remaining facility with our major shareholder. With good progress being made with these projects, and other foundations we have put in place, we are poised for strong growth over the forthcoming period. We have also taken steps to build and secure our other core sources of income by adding further Development Management projects and by commencing the restructuring of our ancillary property management services as we leverage our team's expertise and experience.

Our property management and lettings services are currently outsourced to One Heritage Complete, of which the Group owns 47%. This company has experienced difficulties over the period in connection with two of its subsidiaries (which provide refurbishment, design, fit-out and furnishing services) to the extent that both these subsidiaries have filed for voluntary liquidation. Following a strategic review by the Group, we have decided to bring these same services in-house and to terminate our relationship with One Heritage Complete in an orderly manner and impair our stake in the entity to zero. Otherwise, there is no financial impact to the Group.

At the start of the period under review, I set out below a number of key strategic priorities for the Group which I touched on in our interim results earlier this year. These objectives and the progress against each are set out below. 1. SUCCESSFULLY DELIVER OUR DEVELOPMENT PROJECTS

I am delighted to report significant progress on our development projects, having announced earlier this year the execution of three building contracts and the raising of GBP5.5m of new development finance. This means that we have formally commenced the programme of works for our Bank Street Sheffield, Oscar House Manchester and Lincoln House Bolton developments to create 138 apartments. All are expected to complete construction and sale during the new financial year to June 2022.

In the background, our team have continued to refine the design of our developments and have increased the number of apartments across our developments from 169 to 171. Improvements to design and additional units has have increased the aggregate GDV by GBP2.4 million.

To date, we have successfully achieved planning permission for three of our development projects, namely Bank Street, Oscar House and Lincoln House. We are currently awaiting the outcome of a modified planning application for Bank Street, where we are seeking to add one further apartment and additional design changes for greater efficiency. Planning applications have also been submitted for St Petersgate, Stockport and Churchgate, Leicester. We expect these applications to be determined later this calendar year.

The most significant challenge we are facing currently, itself an industry-wide challenge and well documented in the media, is the mounting cost pressure in respect of building materials. This has been caused by the production of these materials being severely affected by economic lockdowns around the world in response to the global pandemic. As economies have opened up, production has struggled to keep up with a surge in demand. From our perspective, this has been offset to some extent, by the continued up-tick in property prices and the fact that our three development projects that have already commenced have fixed price contracts, with the remaining two being tendered on a fixed price basis before any works are commenced.

Below is a current summary of our existing development projects:

Project                    Location   Residential units Commercial units GDV (GBPm) Expected Completion Reservations 
Lincoln House              Bolton     88                0                9.4      Q1 2022             22 (25%) 
Churchgate                 Leicester  15                1                3.6      Q3 2022             Not started 
Oscar House (Chester Road) Manchester 27                0                6.3      Q1 2022             27 (100%) 
Bank Street                Sheffield  23                0                3.8      Q1 2022             14 (60%) 
St Petersgate (Plus House) Stockport  18                1                3.2      Q3 2022             Not started 
                                      171               2                26.3 

In addition to the Group-owned developments listed above, we have also made good progress with the developments where we are acting as Development Manager. At present we are managing three projects; a 55 storey tower in Manchester (at RIBA stage 4 design); a conversion of a former Court House in Oldham being forward funded by a housing association to create 42 affordable homes, and a development in Queen Street Sheffield to create 58 apartments. 2. Secure sales for our properties under construction

In conjunction with the start on site at three developments, we have also commenced our sales programme. Although none of the developments is scheduled for completion until the first quarter of 2022, we are seeing very strong pre-sale interest and we are pleased to have secured 63 property reservations as at 30 September 2021 which equates to 48.8% of apartments available for sale and totals GBP11.3 million in terms of GDV .

(MORE TO FOLLOW) Dow Jones Newswires

October 20, 2021 02:00 ET (06:00 GMT)

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Financials
Sales 2021 0,46 M 0,62 M 0,62 M
Net income 2021 -0,81 M -1,07 M -1,07 M
Net Debt 2021 4,98 M 6,60 M 6,60 M
P/E ratio 2021 -33,1x
Yield 2021 -
Capitalization 13,9 M 18,4 M 18,5 M
EV / Sales 2020 -
EV / Sales 2021 82,3x
Nbr of Employees 20
Free-Float -
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Managers and Directors
Jason David Upton Chief Executive Officer & Executive Director
Markus Luke Piggin Finance Director
David Stewart Izett Independent Non-Executive Chairman
Hannah Oshea Operations Manager
Yiu Tak Cheung Executive Director & Chief Investment Officer