Notes to the Financial Statements 3-18
Note 3 Particulars of turnover cost of sales, operating costs and operating surplus Note 4 Accommodation in management and development Note 5 Operating surplus Note 6 Surplus on sale of fixed assets – housing properties Note 7 Interest receivable and other income
Note 8 Interest and financing costs Note 9 Employees Note 10 Board members and executive directors Note 11 Key management personnel Note 12 Tax on surplus on ordinary activities Note 13 Intangible fixed assets
Note 14 Fixed assets – housing properties
Note 15 Tangible fixed assets – other
Note 16 Investment properties
Note 17 Investments
Note 18 Properties for sale
3 Particulars of turnover cost of sales, operating costs and operating surplus
3a Group
*Please note the prior year has been restated regarding the deficit on derecognition of components amounting to £1,092k. The prior year has been restated to align with the current year’s treatment. On the statement of comprehensive income the £1,092k has been recognised as accelerated depreciation within operating expenditure therefore increasing the gain on disposal of housing properties.
3a Association
*Please note the prior year has been restated regarding the deficit on derecognition of components amounting to £1,092k. The prior year has been restated to align with the current year’s treatment. On the statement of comprehensive income the £1,092k has been recognised as accelerated depreciation within operating expenditure therefore increasing the gain on disposal of housing properties.
3b Particulars of income and expenditure from social housing lettings Group and Association
3c Particulars of income from non-social housing lettings
4 Accommodation in management and development
At the end of the year accommodation in management for each class of accommodation was:
5 Operating surplus
The operating surplus is arrived after charging/ (crediting):
6 Surplus on sale of fixed assets – housing properties
Group & Association
*Please note the prior year has been restated regarding the deficit on derecognition of components amounting to £1,092k. The prior year has been restated to align with the current year’s treatment. On the statement of comprehensive income the £1,092k has been recognised as accelerated depreciation within operating expenditure therefore increasing the gain on disposal of housing properties.
7 Interest receivable and other income
8 Interest and financing costs
*This relates to the redemption fees for the part redemption of Harbour Funding bond.
9 Employees
Average monthly number of employees expressed as full-time equivalents (FTE) calculated based on a standard working week of 37.5 hours:
Employee costs:
Some of the Association’s employees are members of the Local Government Pension Scheme (LGPS) or the General Stakeholder Scheme. Further information on the LGPS is given in note 27. The full time equivalent number of staff who received remuneration, inclusive of loss of office, but exclusive of pension contributions:
10 Board members and executive directors
Executive directors
Executive director dates: *1 from 01/08/2021 to 30/04/2024, *2 from 18/03/2024, *3 from 20/06/2022, *4 from 02/11/2021 to 26/06/2022, *5 from 04/07/2022, *6 from 04/10/2021 to 08/07/2022, *7 from 18/07/2022, *8 from 01/05/2020 to 22/07/2022
Board members
11 Key management personnel
The aggregate remuneration for key management personnel, which includes the executive directors and other members of the senior management team, charged in the year is:
12 Tax on surplus on ordinary activities
The tax assessed for the year is lower than the standard rate of corporation tax in the United Kingdom at 25% (2023: 19%). The differences are explained as follows:
13 Intangible fixed assets
14 Fixed assets – housing properties
Group – housing properties
The Group note contains an intercompany adjustment wherein the profit made by settle’s subsidiary is removed. Association therefore holds assets under construction at a £431k higher value than settle Group. There are no other differences.
Impairment for housing properties for letting and shared ownership properties under construction in the year amounted to £2,008,000 (2023:nil)
The housing property stock is held at cost, at each year-end the stock is externally re-valued by Jones Lang LaSalle using EUVSH valuation method.
Expenditure on works to existing properties
Social housing grant
Finance costs
Impairment
The Group considers individual schemes to be separate Cash Generating Units (CGU’S) when assessing for impairment, in accordance with the requirements of Financial Reporting Standard 102 and Housing Statement of Recommended Practices.
15 Tangible fixed assets – other
16 Investment properties
Investment properties were valued as at 31 March 2024. The Group’s investment properties have been valued by Davies King professional external valuers. The full valuation of property was undertaken in accordance with the Appraisal and Valuation Manual of the Royal Institute of Chartered Surveyors as follows:
The Group hold two residential properties to enhance development opportunities, these have since been rented as market rent properties with the intention to sell once the development opportunities have materialised.
17 Investments
settle, the Association, owns all £100 of the issued share capital of Rowan Homes (NHH) Limited.
The investments within the Debt Service Reserve are charged as security for the Group’s £64m bond with Harbour Funding Plc and are held by Royal Trust Corporation of Canada, the bond facility agent on behalf of the Group. The investments were revalued at 31 March 2024 and are recorded in the accounts at the market value £5,987k at that date (2023: £5,868k).
The principal undertakings in which the Association has an interest in are as follows:
18 Properties for sale
