Financial statements 2015/2016

All the surplus we generate is reinvested to provide new homes and to manage and maintain our existing homes.

Our financial performance for the year continues to be strong in all areas. Turnover increased by £1m, or 1.3% due to growth from new properties, rent and service charge increases. Operating costs and costs of sales increased at a higher rate of 6.1% by £3.1m. However this includes £1m within operating costs for one-off restructuring and £1.8m for impairment. This has directly impacted our operating surplus which stands at £18.6m compared to £20.8m last year. The surplus before tax decreased by £1.1m to £7.2m in the year and our historic cost comprehensive income was £13.6m.  

As a result of increased voids and potential demand issues, one independent living scheme has been considered for impairment. The decision has been taken to decommission the scheme and it has been impaired to the latest valuation. This resulted in an impairment of £1.3m within operating costs, which is offset by a reserves transfer.

Cash flow from operating activities was £31.8m, mainly due to the operating surplus, adding back some £10.4m of depreciation and impairment. No new borrowings were required during the year which means that our development commitments of £13.8m were funded through operating cash flows after financing of £13.2m and social housing grant of
£1.1m.

Net tangible fixed assets rose to £515m, an increase of £3.5m which reflects investment in new property. The Group’s pension fund deficit for both its LGPS and SHPS schemes is £8.6m. Reserves increased by £10.3m due to the Group surplus made in the year. 

The Group had £1.7m net current assets at the end of the year, a movement of £3.7m on the prior year. Debt reduced by £1.5m arising from a variable loan repayment during the year due to active treasury management. 

For this year end we have adopted a new accounting standard, FRS102, which has required us to change our accounting in a number of areas. We have therefore restated our year end 31 March 2015 position in order to compare financial performance for the last two years.

The surplus and operating margin indicators have been impacted by the new accounting standard. In addition, the Group has incurred £1m one-off restructuring costs to achieve future long-term efficiencies. The Group’s underlying financial performance is within target and demonstrates our financial strength and resilience. The loan covenant indicators including interest cover shows a constant and significant increase over time, with gearing reducing in line with our strategy. 

Financial statements 2014/2015

Our financial performance for the year continues to be strong in all areas. Turnover increased by £2.5m, or 3.7% due to growth from new properties, rent and service charge increases. Operating costs and costs of sales increased at a lower rate of 4.2% by £1.9m, resulting in an increase in operating surplus of £0.6m, or 2.8% to £23.6m. The surplus on ordinary activities before tax increased by £1.0m to £12.1m in the year with a historical cost surplus for the year of £12.6m.

Financial statements 2013/2014

In 2013/14, the Group continued to strengthen its financial position with a surplus of £11m for the year. Turnover increased by £4.8m, or 7.4%, owing to growth from new properties, rent and service charge increases, whilst operating costs and costs of sales increased by £2.6m, or 6%. In total, the Group invested £19m in acquiring or building new housing during the year and £7m in maintaining existing homes.

Financial statements 2012/2013

In 2012/13, we completed an ambitious £28.3m development programme, creating 282 new homes across the Group. During this time, our turnover increased by 7% to £64.1m and we achieved a surplus of £9.3m, which is being reinvested in our homes, communities and services. Our assets also grew during the year to £460.3m.

Financial statements 2011/2012

The Group has had another successful year and continues to strengthen its financial position. Overall the Group invested £24.9m in acquiring and building new housing during the year, funded by new bank borrowings of £9.4m, reflecting the Group’s buoyant development programme.

Financial statements 2010/2011

The Group has had another successful year and continues to strengthen its financial position. Overall the Group invested £32.5m (2010: £28.6m) in acquiring or building new
housing during the year, funded by new bank borrowings of £5.4m, reflecting the Group’s buoyant development programme.

Financial statements 2009/2010

The Group has had another successful year and continues to strengthen its financial position. Group turnover was £51.2m and Group Historic Cost Surplus was £4.3m. Overall, the Group invested £28.6m in acquiring or building new housing during the year, and received grants of £9.4m. The Group’s housing assets stood at a valuation of £361.1m at 31st March 2010.

Financial statements 2008/2009

The Group has had another successful year and continues to strengthen its financial position. Overall, the Group invested £17m in acquiring or building new housing during the year.