Financial statements 2017/2018

The Group’s entire surplus has been, or will be reinvested to run and improve our services, meaning we can continue to invest in new homes, maintain existing homes and manage our liabilities.

Our financial performance for the year continues to be strong in all areas. Turnover decreased by £0.4m or 0.6%, impacted by a reduction in rents receivable for supported housing and independent living. Operating costs increased by £3.2m or 6% mainly due to increased planned and major repairs expenditure. Cost of sales has decreased by £0.3m, a direct result of lower levels of supported housing and independent living sales activity. Our operating surplus stood at £18.5m compared to £21.8m last year impacted by increased salaries and lifeline costs. The surplus after tax decreased by £1.7m to £8.0m.

The surplus on cash flow from operating activities was £27.7m which financed loan repayments of £6.1m made during the year and development and maintenance investment of £12.7m. 

Net tangible fixed assets remained stable at £512m reflecting new developments and replacement of components offset by depreciation.  The Group’s share of the pension fund deficit for both LGPS and SHPS schemes is £10.5m. Reserves increased by £10.7m due to the surplus made in the year and movements in other provisions.

The Group had £249m net assets at the end of the year. Net debt reduced by £9.3m due to loan repayments.

The Group’s underlying financial performance is within target and demonstrates our financial strength and resilience. The loan covenant indicators including interest cover and gearing and show a strong position over time.  We are compliant with all loan covenants.