New Progress Housing Association
New Progress Housing Association continued its drive for service excellence and improved performance, exceeding national average statistics, in the key areas of rent collection and empty property management. Our Control Centre operation continued to achieve steady growth, generating in excess of £1.3 million income for the Group and exceeding business plan projections. The Community Investment Panel, in its second year, continued to make awards to community groups and other organisations providing support and assistance to our tenants.
Progress Care Housing Association
Progress Care Housing Association completed a significant development programme in the year with expenditure totalling £15m, which was reached through the aid of grant funding. This year, we also celebrated the tenth anniversary of Clare House women’s refuge with a balloon release to represent the 483 women and 710 children who have been housed since it opened its doors in 2000. The value of the Group’s investment in the joint venture LiLAC, of which it owns a third, increased in the year.
New Fylde Housing
New Fylde Housing joined the Group on 1st April 2009. The realised and projected savings have exceeded original estimates with the company producing a surplus in the year, with further savings expected. in 2011/12. The development of the Heyhouses estate completed in the year with the official opening taking place in October 2010, delivering 116 new homes and substantial refurbishment of the remainder of the estate. The redevelopment has transformed the area and created a fantastic environment in which to live. After securing a funding allocation from the Homes and Communities Agency, construction works are underway on another major new build scheme in Kirkham.
Turnover for the year increased by £4.6m to £55.8m, a 9% increase. Operating costs and costs of sales increased by £4.5m, excluding exceptional items. The operating surplus increased £2.2m (14.5%) to £17.6m. The surplus on ordinary activities increased from a surplus of £3.3m in 2010 to a surplus of £6.6m, with a historical cost surplus for the year of £7.3m. The exceptional item reported in the year, a £2.1m credit, relates to FRS17 pension.
Net tangible fixed assets rose to £406.4m, an increase of £40m (10.9%).The movement reflects investment in new property and a favourable year-end valuation of the Group’s housing stock. Other balance sheet movements to note include: net debt outstanding increased by £5.9m (2.6%), the Group’s LGPS Pension Fund deficit stood at £7.4m (2010: £12.2m) partly as a consequence of the exceptional adjustment. Revenue accumulated reserves became positive for the first time,increasing from a loss of £1.5m to £8.4m.
Key financial performance indicators
The key financial performance indicators for the Group showed an increase in its operating margin (including the FRS 17 exceptional item) from 30% to 32%, a healthy level. Interest cover, a key covenant in the Group’s borrowing facility, stood at 196%; an increase from 2010 (165%). The Group’s gearing ratio stood at 59%, a decrease of 4% from 2010, and comfortably within borrowing covenants.
