New Progress Housing Association continued its drive for service excellence and improved performance, with both arrears and repairs targets exceeded. Our Control Centre operation continued to achieve steady growth during the year. There has been an increase of 14% in Lifeline and Telecare customers, reflected in an increased profitability for the service.
For Progress Care Housing Association, this year has also seen the handover of the first phase of the Leeds Independent Living Accommodation Company (LiLAC) scheme. In March 2009, 41 units of accommodation were completed and ready for tenants to move into.
The build up to the service commencement date included employing a team of staff to deliver the housing management service and setting up a brand new office.
In November 2007, Progress Housing Group submitted an expression of interest to form a partnership with New Fylde Housing. Following an extensive selection process by Members, tenants, staff and consultants, Progress Housing Group was selected as the preferred partner. The Tenant Services Authority approved the partnership in February 2009, which enabled New Fylde Housing to join the Group on 1st April 2009.
The partnership has enabled us to bring together two well-respected housing organisations and is a great opportunity to build upon our already positive relationship. The partnership will bring considerable benefits to our customers, such as further improvement in customer service, more new homes, greater opportunities for tenant involvement, and additional investment in local communities. Efficiencies and operational excellence will be a key consideration for the Group.
Financial Performance
Turnover for the year increased by £3.88m (10.9%). Operating costs and costs of sales increased by £3.14m, resulting in an increase in operating surplus of £0.731m (7.2%) to £10.91m. The surplus on ordinary activities decreased from a surplus of £2.08m in 2008, to a surplus of £0.78m in the year, with a historical cost surplus for the year of £1.27m. Cash flow from operating activities increased by 70% to £18.08m mainly due to the operating surplus, adding back some £3.61m of depreciation. Funds of £9.86m were required during the year reflecting the Group’s buoyant development programme, which showed a net spend of £17.48m in the year.
Net tangible assets rose to £301.4m, an increase of £8.83m (3.02%). This reflects investment in new property and a favourable year-end valuation of the Group’s housing stock. Net debt outstanding increased by £12.58m (7.2%). The Group’s Pension Fund deficit is £6.11m (2008: £6.80m). Reserves decreased by £3.07m (2.78%).
The Group had £0.58m net current liabilities at the end of the year, a decrease of £0.19m. This reflects an increase in investments, a decrease in debtors and an increase in creditors.
