We are fortunate in having the substantial financial resources
of the Joseph Rowntree Foundation behind us. Nevertheless, our
finances are managed within the same constraints as those faced by
other housing associations: the objective is to operate efficiently
and effectively to maintain a solid and sustainable financial
position.
We had another strong performance on our revenue account in
2007. A surplus of £3.3 million was achieved, compared with £2.6
million in the previous year. A significant contribution came from
the surpluses on sales of property arising under the SAVE scheme
(Selling Alternate Vacants on Estates), together with selling
further equity shares ('staircasing') on shared ownership property
and re-sales of bungalows at Hartrigg Oaks. Trustees have decided
that proceeds from sale are to be re-invested in replacement
properties.
The surplus, excluding propert sales, increased slightly from
£349,000 to £356,000, demonstrating that JRHT is not dependent on
property sales to underwrite its revenue position.
The main area of concern is the funding position of residential
care homes which continued to be in overall deficit but at a
reduced rate to the previous year. There remains an on-going
squeeze from downward pressures on income, especially for residents
funded by Social Services, and increases in costs through wage
inflation.The financial position is particularly challenging within
our Adult Services provision, where we are currently re-modelling
the service to be a better reflection of residents' aspirations.
The main driver is improved services to residents but it will also
provide an opportunity to improve its financial position.
The increase in assets in the balance sheet primarily reflects
expenditure on the new retirement community developments at
Hartfields and Plaxton Court. Additional loan facilities were
arranged during the year, which are sufficient to meet our current
funding requirements over the next few years, including
Derwenthorpe.
Table 1: 2006 revenue results
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2007
£'000 |
2006
£'000 |
2005
£'000 |
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Income |
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Rents |
5,192 |
4,964 |
4,801 |
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Residential care homes |
3,826 |
3,705 |
3,531 |
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Hartrigg Oaks |
2,156 |
2,083 |
1,964 |
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Other |
682 |
512 |
367 |
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Total turnover |
11,856 |
11,264 |
10,663 |
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Sale of property |
2,980 |
2,218 |
1,962 |
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Total income |
14,836 |
13,482 |
12,625 |
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Expenditure |
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Direct property management |
3,877 |
3,467 |
3,459 |
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Residential care homes |
3,960 |
3,851 |
3,567 |
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Hartrigg Oaks |
1,967 |
1,860 |
1,742 |
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Community services |
399 |
324 |
321 |
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Interest (net) |
679 |
1945 |
1,203 |
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Exceptional interest charge |
- |
- |
811 |
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Other |
616 |
468 |
354 |
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11,498 |
10,915 |
11,457 |
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Surplus |
3,338 |
2,567 |
1,168 |
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Table 2: Balance sheet at 31 December 2007
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2007
£'000 |
2006
£'000 |
2005
£'000 |
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Housing land and buildings (cost) |
96,445 |
74,332 |
60,536 |
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Less: Social Housing Grant |
(27,036) |
(26,675) |
(25,833) |
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Other grants |
(13,345) |
(13,345) |
(3,490) |
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Depreciation |
(2,452) |
(2,110) |
(1,765) |
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53,612 |
32,202 |
29,448 |
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Hartrigg Oaks |
20,845 |
19,403 |
18,134 |
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Other fixed assets, including Homebuy |
4,240 |
2,611 |
2,678 |
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Net current (liabilities)/assets |
(3,614) |
4,302 |
3,270 |
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Total assets less current liabilities |
58,518 |
58,518 |
52,330 |
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Creditors due after more than one year |
4,657 |
3,422 |
3,233 |
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Housing loans |
22,892 |
12,185 |
11,759 |
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Hartrigg Oaks loans |
1,377 |
1,874 |
2,119 |
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Hartrigg Oaks residence fees |
15,513 |
13,920 |
12,659 |
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Bonds and loan stock |
5,819 |
5,630 |
4,840 |
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Reserves |
24,825 |
21,487 |
18,920 |
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75,083 |
58,518 |
53,530 |
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