Financial Updates

Financial Performance 2009-10

It was another successful year for the Association. The Board had previously considered how it could ensure all the properties could meet the Welsh Quality Housing Standard (WHQS) and decided it would use some of its accumulated reserves to fund the necessary investment work to ensure WHQS could be achieved by the Welsh Assemblies deadline of 2012. In 2009-10, £600,000 was spent on the WHQS work from reserves. This was the third year of such WHQS investment as agreed by the Board. This investment resulted in deficits being shown in the financial accounts for the 2009-10 financial year and the two previous years.

The other major financial investment in the year concerned the Association’s new offices in Newtown. These were opened in March 2010 and provide a much better and efficient working environment than our old offices. However, this project was not without its problems as the site for the offices was previously used for industrial purposes and the ground was contaminated. The works associated with cleaning up the land were more involved and costly than expected. The additional costs are shown in the financial statements as the exceptional item.

In addition to maintaining the properties to a high standard the Association develops properties for those in housing need. During 2009-10 the Association provided 31 additional homes.

How Every Pound Of Rent Is Spent

This pie chart shows how each £1 of rent and service charge we collected across the group in 2009-10 was spent on managing and maintaining our homes or paying interest on the bank loans we have borrowed to build or improve them.

As noted previously the most significant expenditure has continued to be maintaining our properties as part of bring all the properties up to WHQS requirements.

The financial results are for the last 5 years are summarised below:

The Association remains committed to WHQS and remains on target to achieving this by 2012. However, the level of expenditure does not need to at the level of previous years and therefore the Association is budgeting to generate a surplus of £122,000 in 2010-11.

Further Information

The above information has concentrated upon the financial performance for the 2009-10 financial year and a summary of the financial performance in the past. A full copy of the Board of Management’s report and financial statements can be viewed/downloaded using the link below:

Download Full Set Of Accounts (2009-10)

Of equal importance are the financial plans for the future. The Association takes a long term view in managing and maintaining its properties. It therefore, produces long term financial forecasts for the next 30 years. These financial forecasts help demonstrate to the banks and building societies from whom we borrow money that the Association is able to repay the loans within timeframe they require. These financial plans also help the Welsh Assembly Government assess our financial strength and viability.