The Hyde Group Annual Review 2009/10 - Hyde Housing Association

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Financial summary The Group had a good financial year and its excellent financial performance means that an extra £19.3m is available to re-invest in services during the next twelve months. This performance was achieved by a combination of tight control of operating costs and increased revenues. This extra money will be spent on improving services, including repair services, as well as enabling us to build new homes and make improvements to existing properties. We will continue to develop affordable housing, and have been actively pursuing both the opportunities and the funding required to do this. Where does our income come from? Leasehold & management fees (£9.8m) 3% Outright sales (£13.8m) 6% Other sales (£16.2m) 7% Services charges (£17.4m) 7% Other income (£19.6m) 8% Shared ownership sales (£21.6m) 9% Rental income 60% (£148.8m) During the year the Group experienced pressures from lower demand and values for homes for shared ownership and homes for sale. Despite the difficult market conditions there was only a modest reduction in the surplus on the sale of housing properties. Investment in housing properties has increased by £127.9m. Grants of £77.6m were receivable in the year towards funding the development of new homes. 1,085 new homes were completed during the year. The amount of grant received towards the cost of building a home is likely to decrease in the future. Therefore, our good financial performance this year and in the future is essential to enable us to keep building homes. How do we spend that income? Housing property depreciation (£11.3m) 5% Housing management costs (£14.3m) 6% Corporate services (£15.2m) 6% Cost of sale first tranche shared ownership (£17.5m) 8% ICT & infrastructure (£7.3m) 3% Cost of sale other (£7.8m) 3% Cost of sale outright sale (£10.6m) 5% Service costs (£18.9m) 9% Other 3% (£8.2m) Staff costs 14% (£32.8m) Maintenance & stock renewal 19% (£45.5m) Interest costs 19% (£45.9m) Our financial and general reputation has been enhanced following an Aa2 credit rating from Moody’s Investors Service. In addition, for the third year running we have received the Tenant Services Authority’s top green rating following an assessment of our viability and financial performance. These are key achievements for the Group and will enable access to more funding which will be spent building homes. Where do we get the money to build new homes? Sale of housing properties (£16.2m) 13% Bank Lending (£28.3m) 22% Internal Resources (£6.6m) 5% Social housing & other grants received 60% (£75.8m) 32 The Hyde Group | Annual Review 2010
Income and Expenditure Balance Sheet Cash Flow 2010 2009 £’m £’m Turnover 230.9 214.5 Operating costs (173.8) (167.3) Operating surplus 57.1 47.2 Surplus on sale of housing properties 8.4 9.1 Interest receivable and similar income 4.2 0.9 Interest payable and similar charges (50.1) (41.0) Other finance costs/(income) (0.3) 0.6 Surplus for the year before taxation 19.3 16.8 Taxation – – Deferred taxation – (0.3) Surplus for the year after taxation 19.3 16.5 Transfer to reserves (18.2) (3.4) Revenue reserve brought forward 169.4 156.3 Revenue reserve carried forward 170.5 169.4 2010 2009 £’m £’m Net cash flow from operating activities 62.8 74.0 Returns on investments and servicing of finance Interest received 3.9 1.5 Interest paid (60.1) (51.2) Net cash outflow from returns on (56.2) (49.7) investments and servicing of finance Tax paid (0.0) (0.6) Capital expenditure Acquisition and construction (123.3) (204.3) of housing properties Social Housing and other grants received 75.8 70.6 Purchase of other fixed assets (3.7) (4.2) Sale of housing properties 16.2 17.5 (35.0) (120.4) Net cash outflow before use (28.4) (96.7) of liquid resources and financing 2010 2009 £’m £’m Fixed assets Housing properties at cost 2,426.3 2,298.4 Social housing and other capital grants (1,128.8) (1,054.8) Depreciation (47.8) (37.5) 1,249.7 1,206.1 Other fixed assets 16.7 16.2 Investments 3.3 2.7 1,269.7 1,225.0 Debtors: amounts falling 12.9 11.9 due after more than one year 1,282.6 1,236.9 Current assets Stock 58.4 51.0 Debtors due within one year 23.4 19.2 Cash at bank and in hand 77.3 138.8 159.1 209.0 Creditors: amounts falling due within 1 year (59.1) (57.3) Net current assets 100.0 151.7 Total assets less current liabilities 1,382.6 1,388.6 Creditors: amounts falling due after more than one year Loans and other creditors 1,027.5 1,056.3 Capital grant recycling fund 7.2 6.1 Disposal proceeds fund 2.4 2.7 1,037.1 1,065.1 Provisions for liabilities and charges 4.3 0.1 Pension liabilities 21.8 2.1 Capital and reserves Called up share capital – – Restricted reserve 4.7 2.8 Revaluation reserve 0.7 0.5 Negative goodwill 143.4 148.6 Revenue reserve 170.6 169.4 Total capital and reserves 319.4 321.3 1,382.6 1,388.6 Financing Loans received 49.3 280.4 Loans paid (82.5) (61.1) (33.2) 219.3 (Decrease)/increase in cash (61.6) 122.6 The Hyde Group | Annual Review 2010 33
Page 1 and 2: The Hyde Group Annual Review 2009/1
Page 3 and 4: t s t • • s t • “ The contr
Page 5 and 6: Highlights Desirable locations New
Page 7 and 8: We actively tackle Anti-Social Beha
Page 9 and 10: 5 Resident inspectors score service
Page 11 and 12: Did you know? Quality repairs when
Page 13 and 14: Helping people to be safe “ It ha
Page 15 and 16: Providing decent affordable housing
Page 17 and 18: Did you know? New homes in stunning
Page 19 and 20: Bringing new life to old buildings
Page 21 and 22: 3 (From left to right) Children pro
Page 23 and 24: Supporting people to manage their o
Page 25 and 26: Honouring our resident stalwarts
Page 27 and 28: Improving people’s lives We suppo
Page 29 and 30: Investing in our Young Pride “ I
Page 31: Did you know? All residents in Hamp
Page 35 and 36: Improving people’s lives • Putt

The Hyde Group Annual Review 2009/10 - Hyde Housing Association

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