As of March 2020, the Group’s operating surplus stood at £17.1 million compared to £18.8 million last year, due to a range of factors detailed below.
The Group’s turnover stood at £79.9m, which is an increase of £1.9 million or 2%, due to a £1.0 million increase in rental income and a £0.9 million increase in Progress Lifeline income.
Operating costs for the Group stood at £61.9 million which is an increase of £4.1 million or 7%, mainly due to increased expenditure from social housing lettings of £1.7 million, and increased Progress Lifeline costs of £1.3 million due to mobilisation costs on new contracts.
The cost of sales of £1.1 million, a decrease of £0.4 million, was a direct result of reduced levels of shared ownership sales activity.
In addition, the Group’s interest costs were reduced by £1 million, part offset by a 2019 gain after the disposal of an investment property of £0.7 million. The Group’s surplus after tax decreased by £1.4 million and stood at £9.3 million.
The Group has a significant asset base, which mainly comprises of its properties and office accommodation. Therefore net tangible fixed assets increased by £12.3 million to £527 million.
The Group’s share of the pension fund deficit for both the Local Government Pension Scheme (LGPS) and the Social Housing Pension Scheme (SHPS) is £11.2 million.
Reserves increased by £9.6 million due to the surplus made in the year and movements in pension liabilities through other comprehensive income.
The Group, therefore, had £271 million net assets at the end of the year.