Pre seen/ Industry Analysis Flashcards
Pre seen / industry revision
Describe FLATTHALLS revenue ?
735 million in 2023, up 15.6% from 636 million in 2022.
What happened to FLATHALL Groups direct costs in 2023
Grew by 34%. Reason not clear but possible reasons could be high material inflation along with supporting revenue growth. (However, revenues only grew by 15.6%)
What happened to FLATTHALL’s operating expenses in 2023 ?
FLATHALL managed to reduce operating expenses by 38%, leading to EBIT growth, reason unclear.
What happened to FLATHALL’s profit for the year?
FLATTHALL managed to see growth of 19.5% and an increase in net margin by 3.3%
FLATTHALL Groups management were able to reduce operating expenses to reduce the impact of increased direct costs. DUVETT where unable to do the same, this is only 1 KPI however, staff turnover would be interesting to compare.
Describe FLATTHALL’s financial position?
Leverage at 27.6 % in 2023, up 17.4% ? from 23.5% in 2022.
Additional 0.6m on loan balance assumed to fund construction works.
Interest cover is strong at 2.5 times
Large amount of PPE relative to debt indicating good security for future funding.
PPE to long term debt ratio of 28%
Positive NAV growth of 8.54% having also issued annual dividend.
Div payout ratio of 37% indicating plenty of retained earnings for future investment
Strong Div cover of 2.7
27million cash position
What is FLATTHALL Groups ROCE
5.53%, up from 4.90% in 2022
What is FLATTHALL Groups Div payout ratio and Div cover
37% payout ratio
2.72% Div cover
What is FLATTALLs current liquidity position in reference to current ratio / interest cover
0.43 current ratio
0.17 cash ratio
2.5% Interest cover
What is FLATTHALL Groups current cash position / NAV
Cash - 27.3 million
NAV - 10301 million with net asset growth of 8.54% from 2022
Industry KPI’s ?
Accounting return
EPRA NTA per share
Occupancy rates
Loan to value ratio (rather than D/E)
Describe FLATHALL’s Gross margin ?
Fell 2% from 86% to 84%
Describe FLATHALL’s Operating Margin?
Grew 4% to 76% up from 72% last year
Due to operating costs decreasing 38%?
Describe FLATTHALL’s working capital position?
Current and quick ratio’s of less < 1 doesn’t show the true picture due to timings and frequency of income and large construction work. Ie small amount of rental invoices due at month end compared with large construction bills.
The working capital cycle is overall negative indicating good liquidity. check working capital cycle ?
Flathall strategy
Strategy is what keeps the business model relevent to the current ecosystem.
That’s the connection
CGMA business model framework integrates strategic and operating models
The businesses model should be able to respond to changes in the ecosystem?
Examples for Flathall?
Room timeshare model
Increased regulation
Student mental health ?
Society .. LGBTQ?
Travel habits inline with green/ sustainability targets .. public transport
Tenant law, leasehold reform etc ..
accommodation build targets & supply / demand equilibrium
Advanced technology…. App development for operations
Student demand … cinemas / deliveroos etc / gyms
What is Flathall’s mission/ vision statement ?
A commitment to quality enables Flathall to maintain a strong brand that attracts students and enables the company to develop relationships with academic institutions.
Flathall aims to grow steadily through the acquisition of new buildings that will enable it to remain the market leader in PBSA in Towland.
Approximately, how many home country students still live in parental homes ?
840,000 = 2.1m *.40
What percentage of the PBSA market do FLATTHALL currently house?
78,000/ 297,600 = 26%
(PBSA = 16% of total market)
How many students currently occupy PBSA in TOWLAND ?
2.1 - 840,000 = 1.26m, + .6m *.16 = 297,600
Circa 300,000
How many students are there in the private rented sector (HMO,s)?
1.86m * .51% = 948,600
Circa 950,000
How many students currently occupy halls of residents ?
1.86m *.33% = 613,800
Circa 614,000
How many students do leading competitor Duvet house?
59,000
How old is Flatthall ?
Founded 30 years ago
Describe DUVETT Groups revenue ?
Grew 19%
547 million in 2023, up 19.06% from 459 million in 2022
How many students can Flatthall
properties accommodate and how
many students needed
accommodation in the 2022-23
year?
78k
&
1.86 million
Which team at Flatthall has most
responsibility for ensuring
buildings adhere to safety
regulations?
Property portfolio management team
Which head office teams deal with
the concierges?
Concierges & cleaners report to, and are supervised by operations. However, they work closely with Customer service as it’s here they report more serious issues
Who is responsible for the Flatthall
website?
IT department
CS responsible for content
No marketing team
What opportunities exist for Flathall?
- New market developments (luxury rentals, overseas market, postgrad rentals.
- Development in new technology (smart heating etc) / tenant app
- Development in building materials (EPC)
- Expansion via acquisition, construction firm
- Scope for increased rental ie summer
- Scope for multifunction accommodation / Cinema, Gyms, supermarkets
- Improvements in
Risk management
governance
change management
decision making techniques
budgeting / cost control
What are key threats to flathall?
failure to control rising costs
failing institutions
reliance on economic stability for revenue
increased online learning
change in preference / en-suites etc
Security / data breaches
How could Flathall improve ESG?
Partner with a leading consultant that specialises in a sustainability strategy service.
How could Flathall improve yields and optimise voids?
Via a flex rental strategy due to evolving property management software, allowing them to adjust to high and low periods of demand ie summer months.. would need a change in planning law however.
Or offer short term rentals for other students to holiday?
How could Flathall mitigate rising costs of utilities and improve energy use?
Via centralised heating controls or a building energy management system designed specifically for student accommodation.
It’s important not to restrict the heat available but to avoid unnecessary energy consumption.
How might Flathall improve the efficiency of buildings?
via sustainability features including triple glazed windows, high levels of insulation, air tight buildings and a mechanical ventilation system. As a fossil fuel-free development, any heating required will be generated by air-source heat pumps and electricity from solar panels.
Partner with low energy accreditor (passivhaus)
How might Flathall improve data security?
PCI DSS
Payment card industry data security standard
How could Flathall mitigate cyber security risk?
- outsourcing to cyber security firm
- Increased budget
- Increased training via professional development
- Warnings of scams (phishing/ deepfakes)
What things could impact student design preferences?
socio demographic determinants such as
income
age
education
nationality
What amenities does recent research suggest students prefer?
Wifi
Laundry
utilities
furniture
parking
study facilities
dishwasher
What partnership oppertunities exist for Flathall?
Unlimited in the sense that anything that applies to life
Mental health support
Wellbeing
Fitness
Groceries
Social events
Transport perks or initiatives
hygiene good practice / products
Food services .. takeways
Meal prep suppliers
Whose heads operations for Flathall?
Dai Linlin
Who do you report to ?
Susanna - senior finance manager
Who is Flathall’s finance director ?
Marina Delgado
Who Is head of customer service at Flathall ?
Hamid Abbasi
Who is the property portfolio director ?
Taisha Abbot
