Annual Report and Financial Statements 2010/11 - Hanover

Group performance headlines
n The key interest cover and gearing covenants set
by our lenders were met with a considerable degree
of comfort.
n The business was able to continue its investment in
new properties without recourse to additional loan
debt thanks to strong underlying cash flows. Some
additional debt was drawn in order to lock in to
advantageous interest rates and this has been
placed on deposit for future use.
Non-financial performance
As at 31 March 2011 2010 2009
Current tenant rent arrears % 1.8 2.5 2.2
Void rent loss % 2.0 3.0 2.8
Properties vacant and available to let % 1.3 1.5 3.7
Properties vacant and not available to let % 0.3 0.3 0.1
Average re-let period days 35 40 29
Lettings to applicants from Black and
Minority Ethnic communities %
2.9 4.3 4.7
Emergency repairs completed on time % 90 91 93
Urgent repairs completed on time % 91 91 92
Routine repairs completed on time % 97 97 97
Non-financial performance during the year also showed
improvement in most areas. Process improvements
in the areas of rent arrears collection and void
management started to bear fruit, and results in these
areas show a reversal of the slow but steady decline
in preceding years. Reported completion of repairs
within target times was below standard during the year,
although resident satisfaction with the repairs service
remained high. A new repairs management system is
being introduced during 2011/12 and this will improve
the ability of users to track and update the status of
repairs jobs on a timely basis.
Resources and relationships
Our finances:
n We plan to achieve positive cash flow year-on-year
from our core operational activity, and have
achieved strong results in this respect in each of
the last two years.
n Budget holders across the business work within a
challenging financial management regime aimed at
maximising value for money for our residents – this
has delivered a healthy budget for 2011/12 which
exhibits further cost savings for reinvestment in new
and improved services.
n Our long-term financial business plan demonstrates
strong financial viability, with capacity to grow the
business in line with strategic plans and ability to
withstand adverse financial scenarios.
n We hold £49m of undrawn loan facilities, sufficient to
fund planned growth activity throughout 2011/12.
If current development spend projections come to
fruition, we anticipate going to the market for additional
funds towards the end of the 2011/12 financial year.
n Charged loan security is already in place to
enable draw down from existing facilities as and
when required.
n In line with our Treasury Policy and Strategy, 80%
of our drawn loan debt is held on a fixed or
hedged interest rate basis – limiting our exposure
to expected upward movements in rates over the
medium term.
Our staff:
n Hanover remains an accredited Investor in People
organisation.
n During the year 285 corporate training courses were
delivered, attended by 850 of our staff. In total, over
4,000 training days were completed.
n The National Vocational Qualifications for lower
level staff and the Chartered Management Institute
accredited management development programme for
middle managers both continued successfully into
2011/12 after their launch in the previous year.
PAGE 14 • HANOVER HOUSING ASSOCIATION AND ITS SUBSIDIARIES