Page 21 - Housing Solutions Annual Report

As an active developing housing association, ownership sales, with total sales of £4.9m being
we strive to use our assets to maximise our future achieved in year.
development capacity. As part of this strategy,
work is underway to reduce our average cost of When the property sales are stripped out of the
borrowing increasing our capacity further. turnover figure, we continue to demonstrate year-
on-year growth despite the final year of the 1%
In 2019/20 shifts in the market as a result of Brexit rent reduction. Our strong financial viability
uncertainty and Covid-19 slowed down our shared contributed towards our G1/V1 rating from
ownership sales, this led to a £1.3m fall in shared Regulator of Social Housing.

Financial Highlights 2019/20 2018/19

Turnover £45.7m £45.8m

Sales £4.9m £6.4m

Turnover (excl. property sales) £40.9m £39.4m

EBITDA (excl. property sales) £21.0m £21.3m

Operating Surplus £15.8m £19.6m

EBITDA as % turnover less property sales 51.3% 54.0%

Total stock (owned, managed & maintained) 7,306 7,111

Operating Costs

During 2019/20 we invested in strengthening our our investment in care homes, which included
finance team, including our business planning the completion of detailed stock condition
function, together with one-off interim Finance surveys. Costs incurred as part of this review
Director costs whilst we recruited a permanent together with the write off of component
director – contributing to increased overhead replacements led to a £192k increase in other
costs. There was a full review undertaken about costs, as can be seen below.

£25,000,000
£20,000,000
£3,195,000
£15,000,000 £3,003,000 £3,495,000
£3,382,000
£10,000,000 £3,032,000 £3,648,000

£5,000,000 £7,415,000 £8,760,000
£0
2018/19 2019/120

Overheads Responsive Maintenance Planned/Major Repairs (expensed) Other

Annual Report and Accounts 2020 21

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16645.02 HS Annual Report 86pp A4 v10.indd 21 10/11/2020 13:34