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| Name | Symbol | Market | Type |
|---|---|---|---|
| Plat Hg Fin 55 | LSE:17YE | London | Bond |
| Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0 | - |
From Jun 2022 to Jun 2024
TIDM17YE
RNS Number : 7889T
Platform HG Financing PLC
27 July 2022
27 July 2022
Platform HG Financing Plc Platform Housing Group Limited
Results for the year ended 31 March 2022
Highlights
-- Strong turnover growth of 10% to GBP296.9m (20/21: GBP269.9m)
-- Shared ownership sales volumes and values demonstrate robust housing market in areas of operation - sales of 563 (20/21: 408)
-- Impacts of Covid-19 and Brexit experienced in maintenance and development activities, affecting materials costs, labour availability and completions
-- Operating surpluses reduced by 11% to GBP89.9m (20/21: GBP101.2m) and social housing lettings margin reduced by 7.7% to 35.2% (20/21 42.9%) driven by maintenance expenditures, one-off depreciation charges and higher void levels
-- Sustainable Finance Framework established in year to support a GBP250m Sustainability bond issuance
-- Sustainability-linked GBP235m revolving credit facility established -- A+ (stable) ratings affirmed with S&P and Fitch At or for the year ended 31 March 2021 2022 Change ------------------------------------ ---------- ---------- ------- Turnover GBP269.9m GBP296.9m 10.0% Operating surplus(1) GBP101.2m GBP89.9m -11.2% New homes completed 909 1,171 28.8% Investment in new and existing homes GBP208.5m GBP217.0m 4.1% Share of turnover from social housing lettings 83.5% 79% -4.5% Social housing lettings margin(2) 42.9% 35.2% -7.7% Current tenant arrears(3)(4) 2.7% 2.4% -0.3% Gearing(2)(4) 41.9% 42.3% 0.5% EBITDA-MRI interest cover(2) 218% 188% -30% ------------------------------------ ---------- ---------- -------
Notes
(1) Surplus excluding gains on disposal of property, plant and equipment (2) Regulator for Social Housing Value for Money metric; for more information go to https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1066373/20220404_Value-for-Money-metrics-Technical-note-guidance_FINAL.pdf
(3) Current tenant arrears includes all general needs tenants (this excludes shared ownership properties)
(4) Figures as at 31 March (as opposed to accumulated over the year to March)
Elizabeth Froude, Platform's CEO commented:
"We close the year in a strong and stable position in spite of a number of economic pressures and one-off costs, which have had an adverse impact on our year-on-year performance.
Our core business is delivering good surpluses and cash generation, and our sales team have continued to maintain a high level of reservations for any units not sold at the end of the year. We also continue to acquire development sites to facilitate our new homes aspirations and commitments to Homes England as a strategic partner.
As we close a very variable year in terms of operating environment, we, like many others, are dealing with a number of challenges and whilst clearing maintenance backlogs, are also managing increasingly difficult supply chains and cost increases for our future property investment.
We continue to invest in enhancing core systems and customer facing services whilst we are stepping up our asset investments to achieve improved energy efficiency and absorbing the increasing cost of maintenance and construction. At the same time we are maintaining tight cost control on overhead costs to protect our strong financial credit metrics.
The overall results reflect a good out-turn in a difficult environment and we thank our investors for their continued support as we strive to improve people's lives across the Midlands area of operation."
Virtual presentation for the credit community to be hosted by
Elizabeth Froude, CEO, Rosemary Farrar, CFO and Gerraint Oakley, Executive Director - Growth and Development
27 July 2022, 9am
Microsoft Teams invite available on request: contact below
Investor enquiries Media enquiries Ben Colyer - +44 7918 160990 media@platformhg.com investors@platformhg.com
Disclaimer
These materials have been prepared by Platform Housing solely for use in publishing and presenting its results in respect of the year ended 31 March 2022.
These materials do not constitute or form part of and should not be construed as, an offer to sell or issue, or the solicitation of an offer to buy or acquire securities of Platform Housing in any jurisdiction or an inducement to enter into investment activity. No part of these materials, nor the fact of their distribution, should form the basis of, or be relied on or in connection with, any contract or commitment or investment decision whatsoever. Neither should the materials be construed as legal, tax, financial, investment or accounting advice. This information presented herein does not comprise a prospectus for the purposes of Regulation (EU) 2017/1129 as it forms part of domestic law by virtue of the European Union (withdrawal) Act 2018 (the UK Prospectus regulation) and/or Part VI of the Financial Services and Markets Act 2000.
These materials contain statements with respect to the financial condition, results of operations, business and future prospects of Platform Housing that are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including many factors outside Platform Housing's control. Among other risks and uncertainties, the material or principal factors which could cause actual results to differ materially are: the general economic, business, political and social conditions in the key markets in which Platform Housing operates; the ability of Platform Housing to manage regulatory and legal matters; the reliability of Platform Housing's technological infrastructure or that of third parties on which it relies; interruptions in Platform Housing's supply chain and disruptions to its development activities; Platform Housing's reputation; and the recruitment and retention of key management. No representations are made as to the accuracy of such forward looking statements, estimates or projections or with respect to any other materials herein. Actual results may vary from the projected results contained herein.
These materials contain certain information which has been prepared in reliance on publicly available information (the "Public Information"). Numerous assumptions may have been used in preparing the Public Information, which may or may not be reflected herein. Actual events may differ from those assumed and changes to any assumptions may have a material impact on the position or results shown by the Public Information. As such, no assurance can be given as to the Public Information's accuracy, appropriateness or completeness in any particular context, or as to whether the Public Information and/or the assumptions upon which it is based reflect present market conditions or future market performance. Platform Housing does not make any representation or warranty as to the accuracy or completeness of the Public Information.
These materials are believed to be in all material respects accurate, although it has not been independently verified by Platform and does not purport to be all-inclusive. The information and opinions contained in these materials do not purport to be comprehensive, speak only as of the date of this announcement and are subject to change without notice. Except as required by any applicable law or regulation, Platform Housing expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any information contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such information is based.
None of Platform Housing, its advisers nor any other person shall have any liability whatsoever, to the fullest extent permitted by law, for any loss arising from any use of the materials or its contents or otherwise arising in connection with the materials. No representations or warranty is given as to the achievement or reasonableness of any projections, estimates, prospects or returns contained in these materials or any other information. Neither Platform nor any other person connected to it shall be liable (whether in negligence or otherwise) for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on any statement in or omission from these materials or any other information and any such liability is expressly disclaimed.
Any reference to "Platform" or "Platform Housing" means Platform Housing Group Limited and its subsidiaries from time to time and their respective directors, representatives or employees and/or any persons connected with them.
Operating review
Introduction
This year has seen the end of Covid-19 restrictions in the United Kingdom and the emergence of an illegal war in the Ukraine by Russia. Although the humanitarian crisis has dominated the thoughts and actions of people and policy makers alike, the economic fallout has been significant and added to pressures already experienced as a consequence of Brexit and Covid-19. As we move forward into a new financial year, there is significant uncertainty on a macro level as well as clear evidence that these shocks are being felt by our customers, who are facing higher inflation than has been seen in a generation.
We continue to navigate these challenges whilst delivering our strategic objectives. In this difficult environment turnover has shown strong year on year growth of 10%, supported by a strong sales pipeline and robust housing market. Operating surpluses and margins were lower than the prior year, driven by one-off changes to depreciation policy, high inflation and a shortage of labour supply in our maintenance division that has driven up contractor costs.
The economic headwinds being faced by the Group in combination with a desire to retain strong credit metrics has resulted in a moderation of our capital aspirations, with new homes completions now projected to increase to a steady output of 1,600 in 2025, and the ambition to bring all Energy Performance Certificate (EPC) ratings to C and above adjusted to 2030 (from 2028).
We will continue to carry out our strategic activities with a strong focus on managing controllable costs, ensuring that at the same time we act in a way that is both sustainable and helps those most in need in our areas of operation.
Service review
Supporting our customers, welfare benefits and arrears
The prevailing economic turbulence during the year has had significant detrimental impacts on the lives of our customers, in particular for the most vulnerable. We have seen more customers present with financial problems and we continue to help with an array of support measures, including advice on benefits, debt management and flexible payment arrangements when needed. These measures sit alongside our Wellbeing Fund, which is in place to help support those most in need. For the second year in a row the Group has utilised the fund, providing GBP1.6m to help over 4,000 customers with food, clothing and other essential items. The fund also supported community initiatives across our operating area, allocating GBP120,000.
During the year we significantly improved the quality and evaluation of customer satisfaction data. The number of surveys issued increased substantially, with c16,000 responses received (2020/21: <6,000). This will help to better inform how we develop new products and services in the future based on direct insight from our customers. Customer satisfaction was 70% for the year (2021: 57%).
Our arrears performance remains strong at the year end, with arrears of 2.42% down from 2.7% at 31 March 2021. Within this, arrears from customers in receipt of Universal Credit ('UC') continue to reduce as we get better at supporting customers through this transition. Arrears from customers in receipt of UC was 3.02% at 31 March 2022, down from 3.64% at 31 March 2021.
Growth in the number of residents receiving UC continued during the year, with 14,808 in receipt of UC at 31 March 2022, a growth of 18% in comparison to 31 March 2021 (12,530 customers). The average monthly increase in customers in receipt of UC was just under 200 for the year, which is in line with pre-covid levels. After full roll out in 2024, we expect approximately 18,000 of our customers to be in receipt of UC.
Voids management
The number of properties becoming void and the time to carry out void works have both come under pressure due to Brexit and Covid-19 during the year. Unusually high levels of properties were handed back in the first half of the year as families continued to consolidate living arrangements in the wake of Covid-19. Void repairs have been under significant pressure due to labour availability and materials shortages. Labour shortages were apparent both in the market and as a result of sickness, with Covid-19 related absences peaking in quarter four of the financial year. There were 524 voids at the year-end in comparison to 422 at March 2021, of which 70 related to homes awaiting sale (March 2021: 206). Re-let days were 51 at March 2022 (March 2021: 57), with 40 days on average taken to carry out repairs.
The recruitment of 11 multi-skilled operatives had commenced to support void contracts and ensure a consistent delivery in the coming year.
Asset management
During the year the Group focussed efforts on continuing to provide high quality asset management in spite of increasing costs, labour shortages and supply chain issues. In order to help with labour supply a market rate review of all trades roles was undertaken and increased where necessary to be more in line with the market rates. In addition, the recruitment for a number of new posts were approved, however, expenditure on contractors was high during the year which has adversely affected expenditures.
Repairs satisfaction was high during the period, averaging 86% and finishing the year at 87% (31 March 2021: 88% / 86%) against a target of 92%. The Group has worked hard to ensure the consistency of maintenance services which have been adversely affected by Covid access, staff shortages and supply chain issues.
The Cost Sharing Vehicle (CSV) arrangement within our maintenance subsidiary Platform property Care, which provides a VAT efficient way of providing asset management services to members at cost, was expanded in the year as Stonewater Limited was welcomed. Asset management services will start to be provided to Stonewater from 1 April 2022. This will scale up the size of the CSV and allow all members (Platform Housing Limited, Rooftop Housing Association Limited and Stonewater Limited) to benefit from greater value for money as economies of scale benefits are maximised.
Gas and fire risk assessment compliance was 99.9% and 100% (31 March 2021: 99.7% and 100%). During the year we implemented an automated caller solution for booking gas servicing. The solution allows customers to confirm that they will be available and to re-book appointments as required. This has significantly improved the booking process, increasing customer communications and reducing no access visits. This has helped gas servicing levels to return to levels experienced before the Covid-19 pandemic, although some customers are not available or initially deny access when a check becomes due, making 100% compliance challenging. Fire Risk Assessments have identified a number of low level actions and recommendations such as replacing fire doors and moving bin storage further away from buildings. The Group is committed to implementing all recommendations over the next two years and the costs are fully provided for in the approved long term financial plan.
Environmental, social and governance ('ESG')
The Group considers ESG to be a key part of its core operations and strategy, identifying sustainability, environmental and social value creation as one of six strategic areas of focus. In July 2021 we published our first report under the Sustainability Reporting Standard (SRS), which showcases our performance and aspirations in the area of ESG. This was followed in August 2021 with the establishment of a Sustainable Finance Framework (the Framework). The framework was used to issue our first sustainable bonds in September 2021. Both the SRS report and framework are available to download from the Investor Centre section of the Platform website.
During the year we undertook our first carbon baseline assessments with the support of global sustainability consultants Anthesis, to determine our scope one, two and three greenhouse gas emissions. The findings of the report show that the majority of emissions come from purchased goods and services (49%) and housing stock (43%). During the year to March 2021 emissions reduced by 7%, largely as a result of reduced development and maintenance activity. The findings of the report will help support the formation of our Sustainability Strategy, which is due to be completed in the first half of the year to March 2023 and provide targets for CO2 reduction as we plan for carbon neutrality by 2050. To help support our aspirations a new Head of Sustainability was recruited during the year with the specific remit to decarbonise the Group.
Energy Performance Certificates (EPCs) were completed for a further 6,000 homes in the year. EPCs are now available for approximately 90% of all of our homes as we continue to push ahead with plans to have full coverage. At March 2022 approximately 70% of our homes had an EPC rating of C or better and approximately 95% had an EPC rating of D or better. Air source heat pumps, solar panels and solar thermal systems were retro-fitted to 120,180 and 22 homes respectively during the year.
Platform Property Care, the Group's maintenance subsidiary, achieved ISO14001 certification during the year. ISO14001 is an internationally agreed standard that ensures a high level of environmental performance through more efficient use of resources and reduction of waste.
The Group makes a strong social contribution, including the delivery of affordable housing for our customers.
For the second year in a row the Group has utilised a well-being fund to support those most in need. The fund provided GBP1.6m to help c4,000 customers with food, clothing and other essential items. The fund also supported community initiatives across our operating area, allocating GBP120,000.
During the year virtually all of the homes we developed were for social or affordable rent, or built for sale on a shared ownership basis. We continue to focus on build quality and are developing a 'Platform Standard' for all new build properties, with the aim of moving existing properties towards the standard at the point we carry out significant investment or void works.
We continue to rationalisation our offices following the majority of previously office based staff transitioning to home based working. One office was sold and the lease on another was not renewed. We are cognisant that this transition can be challenging and are supporting our people in a number of ways, including the progression of health and well-being strategies, implementing new tools to measure and improve employee engagement and investing in the development of our people by targeting year on year growth of those in apprenticeships.
The activities of the Group are supported by a commitment to the highest standards of Governance. We continue to have the highest governance and viability ratings from the Regulator of Social Housing in England (G1/V1), as well as A+ (stable) ratings with both S&P and Fitch.
The Group achieved ISO 27001 certification during the year. ISO 27001 is the only auditable international standard that defines the requirements of an information security management system, helping to ensure risks such as cyber attacks, hacks, data leaks and theft are mitigated.
In May 2021 a Trainee Board programme was established with an objective of helping to ensure the longer term diversity of the Group Board. Four trainees sit on the Trainee Board and rotate attendance at Board and Committee meetings and have five of their own Board meetings a year. The continuance of this programme has recently been approved and the Group will be commencing the recruitment of the second cohort at the end of this calendar year. The programme will be extended from two to four years, and it is hoped that Trainee Board members will join a Board sub-Committee at the end of year two, with the opportunity to join the main Board at the end of year four.
Development review
Strategy
Platform's Development Strategy remains centred on larger sites, with greater control over delivery, quality and sustainability. The Group is currently negotiating on a number of larger sites and we hope to have secured some of these during the coming year. Over the last two years we have developed the fourth highest number of social and affordable houses in England and the third largest number of social houses, the most accessible tenure of housing for those struggling to meet rental payments.
Home building programme
Our home building programme has been affected by an increase in global demand for materials, the impact of Brexit and the further national lockdowns in the UK. These have resulted in increases in materials costs and extended supply times. In the year 1,171 homes were completed (31 March 2021: 909). Of these, 236 (20%) were built for social rent, 478 (41%) for affordable rent, 429 (37%) for shared ownership, 12 (1%) for rent to buy and 16 for other tenures (no homes were built for outright sale). Given our current pipeline, we expect to build between 1,100 and 1,200 homes in the year to March 2023. At 31 March 2022, Platform owned a total of 47,123 homes (31 March 2021: 46,151).
Development expenditures were GBP198m in the year, which is in line with the prior year figure of GBP198m. The investment reflects the Group's ongoing commitment to development, in spite of challenging economic conditions, including supply chain delays, labour shortages and cost inflation.
The Group made a significant bid under the Homes England 2021-2026 affordable homes programme in the first half of the year and was successfully allocated grant of GBP250m to develop 4,680 homes at a total cost of approximately GBP1.1bn. All of the homes will be for affordable tenures, with approximately 20% for social rent. In accordance with the requirements of the programme, 50% will provide affordable routes into home ownership, of which 38% will be for shared ownership and 12% Rent to Buy. Of the homes developed, 35% will be built using modern methods of construction. We expect to start on site for schemes in the year to March 2023, with completions coming in years ending March 2024-28.
Governmental and regulatory developments
The social housing regulator is in the process of identifying measures to use for assessing compliance with the Charter for Social Housing Residents: Social Housing White Paper and has consulted with tenants, landlords and other stakeholders regarding the introduction of tenant satisfaction measures (TSMs) and particularly the measures that they will put in place for customer satisfaction going forwards. The Group has provided a full, constructive response back to the regulator on the draft TSMs. In addition, we have offered to be part of a pilot to test the new satisfaction measures. The consultation has now closed and it is expected that the final measures will be published during the summer. The Group will have until April 2023 to prepare for how to collect this information during the financial year to March 2024.
Financial review
Turnover
In the year to 31 March 2022 total turnover grew 10% to GBP296.9m (2021: GBP269.9m).
Hot Features
Premium
Year ended 31 March 2021 2022
GBPm GBPm Change
------------------------------------- ------ ------ --------
Social housing lettings 225.3 234.6 4.1%
Shared ownership first tranche
sales 32.1 48.8 52.0%
Other social housing activities 2.0 1.8 -10.0%
-------------------------------------- ------ ------ --------
Total social housing turnover 259.4 285.2 9.9%
Development for sale 2.3 - -100.0%
Other non-social housing activities 8.2 11.7 11.4%
-------------------------------------- ------ ------ --------
Total turnover 269.9 296.9 10.0%
====================================== ====== ====== ========
Social housing lettings turnover increased by 4.1% to GBP234.6m (20/21: GBP225.3m), in part due to inflationary rent increases of 1.5% (set at September 2020 UK consumer price index of 0.5% plus 1%). The effects of the rent increase was supported by a year on year increase in social housing units, with 909 units completed in the year to March 2021 and a further 1,171 in the year to March 2022.
Shared ownership first tranche sales continue to perform strongly. Turnover from these sales was GBP48.8m, GBP16.7m higher than the prior year (20/21: 32.1m). This reflected a 38% increase in the number of sales to 563 homes (2021: 408 homes) and an average sales price 1.0% higher than in the prior year. With new shared ownership completions of 429 units and two units converted to rented tenures, unsold shared ownership stock declined from 206 units at 31 March 2021 to 70 units at 31 March 2020.
Shared ownership sales
Year to March Year to March
2022 2021
Quarter
1 158 46
Quarter
2 164 132
Quarter
3 135 94
Quarter
4 106 136
-------------- --------------
563 408
The level of unsold shared ownership units has reduced consistently throughout the year due to a number of successful initiatives, including earlier and more focused marketing campaigns, clear targets and enhanced listings.
Opening unsold 206
New completions 429
Net conversions (2)
Sales (563)
------
Unsold at March
2022 70
Of which Reserved 47
Total social housing turnover of GBP285.2m (2021: GBP259.4m) accounted for 96.1% (2021: 96.1%) of Platform's total turnover in the period.
Operating costs and costs of sale
Total costs increased 22.3% to GBP207.2m (2021: GBP169.4m), with operating costs (from both social and non-social activities) increasing 19.1% to GBP168m (2021: GBP141.1m) and costs of sale increasing 38.5% to GBP39.2m (2021: GBP28.3m).
Year ended 31 March 2021 2022
GBPm GBPm Change
------------------------------------ ------ ------ --------
Social housing lettings operating
costs 128.7 152.0 18.1%
Other social housing costs
- shared ownership costs of sale 26.0 39.2 50.8%
- other social housing operating
costs 5.2 5.2 0.0%
------------------------------------- ------ ------ --------
Total social housing costs 159.9 196.4 22.8%
Developments for sale costs of
sale 2.3 0.0 -100.0%
Other non-social housing operating
costs 7.2 10.8 50.0%
------------------------------------- ------ ------ --------
Total costs 169.4 207.2 22.3%
===================================== ====== ====== ========
Social housing lettings operating costs make up most of our costs and they increased by 18.1% to GBP152m (2021: GBP128.7m), driven by one-off depreciation charges of GBP5.6m as a result of aligning policies across merged entities. In addition, revenue maintenance costs were higher by GBP10.9m, with expenditures adversely affected by high inflation and an increased proportion of contracted work due to labour shortages.
Shared ownership cost of sales increased by 50.8%, slightly below related turnovers (52.0%), with sales price growth marginally ahead of associated cost inflation. Other non-social housing costs relate mainly to maintenance activities carried out for external parties and growth has been driven primarily by increased revenues. It has also been affected by cost inflation and labour shortages mentioned above.
Interest costs
Interest payable and financing costs increased by GBP2.3m to GBP56.7m (2021: GBP54.3m). This was due to increased interest costs (GBP2.5m) and one-off loan break costs (GBP2.3m higher than the prior year), which were partly mitigated by higher levels of capitalisation (GBP2.5m). A summary of financing activity can be seen in the Treasury section later on in this report.
Surpluses and margins
Maintaining surpluses is a crucial part of our business model. We reinvest 100% of surpluses into building more homes, improving energy efficiency and enhancing our services.
Operating surpluses and margins were adversely affected by one-off depreciation charges, higher maintenance expenditures and increased voids. Maintenance expenditures have been affected by a shortage of labour availability, cost inflation and an element of catch up to compensate for delayed programmes. In addition, the prior year was characterised by subdued maintenance as activity was curtailed during covid lockdowns, affecting the comparative figures. Voids have been adversely affected by unusual peaks in handbacks due to Covid lockdowns and delays in repairs caused by labour shortages.
Operating margins have also been affected by a larger proportion of turnover being generated from shared ownership sales (that have relatively lower margins). In the year to 31 March 2022 16.4% of turnover came from shared ownership sales (March 2021: 11.9%), with associated margins of 19.8% (March 2021: 19%). The overall surplus after tax, which incorporates interest costs, declined to GBP20.1m (2021: GBP20.8m). When one-off depreciation, loan breakage costs and pension revaluations are adjusted for the reduction in surplus after tax totals GBP5.2m, driven by higher maintenance costs. The different measures of surplus and related margins for the current and prior year are set out below.
Year ended 31 March 2021 2022
Amount Margin Amount Margin
GBPm % GBPm %
--------------------------------- ------- ------- ------- -------
Social housing lettings surplus 96.6 42.9 82.6 35.2
Shared ownership sales surplus 6.1 19.0 9.7 19.8
Overall operating surplus((1)
) 101.2 40.8 89.8 30.3
Surplus after tax and pensions 37.6 20.8 59.6 20.1
Adjusted surplus after tax((2)
) 62.4 23.1 57.2 19.3
--------------------------------- ------- ------- ------- -------
Notes
(1) Excluding gains on disposal of property, plant and equipment (2) Excluding one-off depreciation charges, loan breakage costs and pensions revaluations
The table below sets out the key drivers of the variance in Platform's surplus after tax between the years to March 2022 and 2021.
Income Expenditure Surplus
GBPm GBPm GBPm
---------------------------------------------------- ------- ------------ -----------
Year ended 31 March 2021 37.6
Loss on pensions revaluations 18.4
One-off loan breakage costs 6.4
-----------
Surplus after tax before one-off charges
- March 2021 62.4
Social housing lettings turnover 9.3 9.3
Other social housing turnover (excluding sales) -0.2 -0.2
Property sales(1) 14.4 -10.9 3.5
Social housing costs:
Repairs and maintenance -10.9 -10.9
Depreciation -3.3 -3.3
Management costs -1.9 -1.9
Other costs -2.2 -2.2
Other social housing activities -0.2 -0.2
Non-social housing activities 3.5 -3.5 -
Gains on disposal of property, plant and equipment 10.2 -9.9 0.3
Net interest costs 0.1 -2.6 -2.5
Capitalised interest 2.5 2.5
Other 0.4
-----------
Surplus after tax before one-off charges
- March 2022 57.2
Gain on pensions revaluations 16.7 16.7
One-off depreciation charges for - capitalisation
policy alignment -5.6 -5.6
One-off loan breakage costs -8.7 -8.7
-----------
Year ended 31 March 2022 59.6
==================================================== ======= ============ ===========
Notes
(1) Property sales include shared ownership first tranche sales and developments for sale at cost to Local Authority partners
Treasury review
Financing activity
The Group successfully implemented its funding strategy during the year, which centred on maintaining liquidity whilst keeping borrowing costs to a minimum and at the same time, increasing transparency to investors through greater use of sustainability linked finance.
The Group's first report under the sector wide Sustainability Reporting Standard was issued in July 2021, which was followed by the establishment of a Sustainable Finance Framework in August 2021. This enabled the Group to issue its first sustainability bonds in September 2021, utilising its GBP1bn EMTN programme. The 20 year, GBP250m issuance had a coupon of 1.926% and will help support the Group's ambitions to build more homes and reduce its carbon footprint.
Another significant sustainability-linked transaction completed shortly after the year end, creating a GBP235m revolving credit facility with Lloyds Bank. The initial five year facility, of which GBP50m was new borrowing and GBP185m refinanced, is linked to sustainability targets for energy efficiency and staff development. A margin benefit if applicable if targets are met.
Other notable financing activities include the sale of GBP50m retained bonds in December 2021 at a yield of just over 1.7%, and the repayment and cancellation of a GBP33m facility with Nationwide Building Society. The repayment helped to harmonise the Group's funding covenants and liberates security that was restricted to EUV-SH valuations, generating extra debt capacity. On repayment to Nationwide break costs of GBP8.7m were payable (due to the above market interest rates on the facility), which will be recovered through interest cost savings going forwards.
Debt and liquidity
At 31 March 2022 net debt was GBP1,161m (20/21: GBP1,094m). Net debt comprised nominal values of GBP882m in bond issues, GBP80m in private placements and GBP490m in term loan and revolving credit facilities, partially offset by cash and equivalents of GBP278m and accounting adjustments of GBP13m.
Platform's weighted average cost of finance was 3.28% (31 March 2021: 3.40%), benefitting from the low all-in rates achieved on the two capital markets transactions in September (GBP250m sustainability bonds) and December (GBP50m retained bonds) 2021, in addition to the repayment of a GBP33m legacy facility, which also enhanced the flexibility and consistency of funding covenants. The average life of debt was 22 years (31 March 2021: 22 years).
Platform had sufficient liquidity at 31 March 2022 (approximately GBP850m including undrawn committed facilities and cash and cash equivalents) to meet all projected net cash outflows for the next three years, taking into account projected operating cash flows, forecast investment in new and existing properties and debt service and repayment costs (financing will be arranged in advance of this time to maintain a robust liquidity buffer).
Financial ratios
Platform monitors its performance against various financial ratios, including Value for Money metrics reported to the Regulator of Social Housing and ratios it is required to comply with under its financing arrangements.
Gearing, measured as the ratio of net debt to the net book value of housing properties, was 42.3% at 31 March 2022 (31 March 2021: 41.9%). Gearing has increased in the last year due to new funding required for development expenditures. Gearing was comfortably within Platform's target of maintaining gearing below 50%.
EBITDA-MRI interest cover was 188% (31 March 2022: 218%). The movement from the prior year is largely driven by increases to maintenance costs due to high inflation and a catch up in repairs. The ratio remains well above Platform's guideline minimum (120%).
A significant amount of excess security charged to debt facilities has been proactively released during the year. As part of these exercises former transfer stock has been subjected to legal due diligence and where previously limited to valuations on an Existing Use Value - Social Housing basis, has been uplifted to valuations on the basis of Market Value - Subject to Tenancy (both calculated in accordance with the Royal Institute of Chartered Surveyors (RICS) 'Red Book'). At 31 March 2022, Platform had approximately 9,700 unencumbered properties (31 March 2021: 6,500) with an estimated value of GBP750m (31 March 2021: GBP460m). The robust levels of unencumbered stock will provide the flexibility to raise additional financing when required to complement its existing substantial cash and undrawn facilities.
Review of value for money (VfM) performance for year ended 31 March 2022
Obtaining VfM ensures we make the best use of our resources and is an essential part of our charitable objective to provide affordable housing. Platform assesses its performance against the Regulator of Social Housing in England ( RSH's) VfM metrics for the year in the context of a group of other major social housing providers. This analysis is helpful as these metrics are defined by the RSH and reported across the sector, providing a greater degree of comparability.
Peer group information is currently not available for the year to 31 March 2022, so a comparison against prior year has been undertaken. When we report our half year results we will include a full comparison against our peer group for the year to March 2022. The peers included in the analysis are set out in the footnotes to the table.
Platform
-----------------------------------
RSH VfM metric(1)(2) Lowest Average(3) Highest Mar-21 Ranking(4) Mar-22
--------- ----------- --------- --------- ----------- ---------
Reinvestment 3.4% 6.1% 8.5% 8.0% 2 7.9%
--------- ----------- --------- --------- ----------- ---------
New supply (social housing
units) 0.7% 1.5% 2.2% 2.0% 2 2.5%
--------- ----------- --------- --------- ----------- ---------
New supply (non-social housing
units) 0.0% 0.2% 0.6% 0.0% 1(5) 0%
--------- ----------- --------- --------- ----------- ---------
Gearing 28.9% 44.2% 51.9% 41.9% 3 42.3%
--------- ----------- --------- --------- ----------- ---------
EBITDA-MRI interest cover 91% 181% 241% 218% 4 188%
--------- ----------- --------- --------- ----------- ---------
Headline social housing CPU(6) GBP2,463 GBP3,638 GBP4,484 GBP2,463 1 GBP2,855
--------- ----------- --------- --------- ----------- ---------
Operating margin (SHL)(6) 17.5% 31.4% 42.9% 42.9% 1 35.2%
--------- ----------- --------- --------- ----------- ---------
Operating margin (total) 13.8% 26.6% 38.0% 37.2% 2 30.2%
--------- ----------- --------- --------- ----------- ---------
Return on capital employed 2.6% 3.6% 5.1% 4.1% 3 3.3%
--------- ----------- --------- --------- ----------- ---------
Notes
(1) Sample of social housing providers includes Platform, Bromford, Citizen, Guinness, Home Group, Jigsaw, Longhurst, Midland Heart, Optivo, Orbit, Riverside, Sanctuary, Sovereign and Stonewater. We may evolve the make-up of the sample in future.
(2) See: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1066373/20220404_Value-for-Money-metrics-Technical-note-guidance_FINAL.pdf
(3) Unweighted or simple average of performance across the selected group of social housing providers
(4) Platform ranking is based on performance against peers as reported in the year to March 2021
(5) A low focus on building non-social housing is viewed as giving a strong ranking due to property market risks related with such activities
(6) CPU: cost per unit; SHL: social housing lettings
This year has been challenging as the effects of Brexit and Covid-19 have begun to materialise, with inflationary pressures to materials, supply chain delays and labour shortages all affecting operating costs. Despite the challenges encountered in the year, we have continued to invest in new and existing homes. Our strong reinvestment has kept pace with the prior year and reflects our commitment to sustained and prudent investment, supported by our strong margins and cash flows, competitive cost of debt and grant funding from Homes England. This is core to our key purpose of alleviating the Midlands housing shortage and providing enhanced life prospects for as many local people as possible.
Our investments in new housing properties is shown in new supply metrics, with the supply of new units representing 2.5% of total units. These metrics also highlight our focus on affordable tenures, with no non-social units developed.
Gearing has remained broadly consistent with the prior year, with a small increase reflective of additional financing activity.
EBITDA-MRI interest cover, social housing cost per unit, operating margins and return on capital employed have all been adversely affected by cost inflation, particularly in relation to our maintenance activities.
As part of our Vfm strategy we have introduced extra resource into our procurement function during the year. A category council approach has been implemented involving regular meetings with budget holders and their teams in order to identify and leverage efficiencies. Savings have been made in a number of areas, including insurance, overheads and service costs. On top of this the first phase of a review into pensions was undertaken during the year following a significant increase in pension liabilities following the the Social Housing Pension Scheme's (SHPS) three yearly (defined benefit) valuation. As a consequence of the review the scheme has been closed to future accrual.
At the same time as keeping costs to a minimum we recognise that Vfm is not solely about cutting costs but about delivering quality services whilst using resources in the most cost-effective manner. To that end we have launched a Social Value Strategy in the year that aims to capture, amongst other things, social return on investment. To help support this strategy we have partnered with social value enterprise company HACT and are looking to implement the HACT Social Value roadmap, a three phase project that will improve the valuing, benchmarking, innovation, professionalism, reporting and assurance of social value. This will allow us to better estimate and value the social impact that our services deliver.
Outlook
In the coming year turnover is expected to grow in line with new units coming into management and inflationary rental increases (based on CPI inflation in the UK - fixed at September 2021 plus one percentage: 4.1%). Demand for sales is expected to remain robust in our areas of operation, but turnover slightly lower than the year to March 2022 due to lower volumes of homes available to sell. Voids are expected to improve, with new staff recruited to help with the backlog of maintenance required. Maintenance costs are expected to remain high as the cost of materials and labour continue to be elevated. Cost inflation is also likely to have a significant impact on our customers, putting pressure on rental collection. Overall we expect key financial performance metrics to be similar to those for the year to March 2022.
We remain committed to the development of new affordable housing and expect some of the larger sites in our pipeline to commence. We also expect to push ahead with investigative work around the delivery of Modern Methods of Construction (MMC), having now joined the Building Better Framework, which will enable us to have better access to a range of tried and tested MMC manufacturers. We recognise the current challenges in supply chains and expect to complete 1,100-1,200 homes in the year.
Acting in a sustainable way remains a core tenet of everything that we do and the coming year will see the completion of our Sustainability Strategy, setting out how we plan to improve energy efficiency and reduce our carbon footprint. We will also complete work on the development of our 'Platform Standard', the benchmark for quality and sustainability that we will apply to all new developments. We are committed to increasing the EPC ratings of all our homes to C and above by 2030 and works to properties will continue in the year to achieve this.
In the longer term our resilient financial and operational model leaves us well placed to continue delivering our strategic objectives, centred on the provision and maintenance of high quality, affordable and sustainable housing, alleviating the Midlands housing shortage and providing enhanced life prospects for more local people.
Financial Statements
Legal Status
Platform Housing Group (the parent company) is incorporated in England under the Co-operative and Community Benefit Societies Act 2014 and is registered with the RSH as a Private Registered Provider of Social Housing. The registered office is 1700 Solihull Parkway, Birmingham Business Park, Solihull, B37 7YD.
Platform Housing Group comprises the following entities:
Name Incorporation Registration
Platform Housing Group Co-operative and Community Registered
Limited Benefit Societies
Act 2014
--------------------------- ---------------
Platform Housing Limited Co-operative and Community Registered
Benefit Societies
Act 2014
--------------------------- ---------------
Platform Property Companies Act 2006 Non-registered
Care Limited
--------------------------- ---------------
Platform New Homes Companies Act 2006 Non-registered
Limited (formerly
ESHA (Developments)
Limited)
--------------------------- ---------------
Platform HG Financing Companies Act 2006 Non-registered
PLC
--------------------------- ---------------
Waterloo Homes Limited Companies Act 2006 Non-registered
(Dormant)
--------------------------- ---------------
Basis of Accounting
The Group's financial statements have been prepared in accordance with applicable United Kingdom Accounting Generally Accepted Accounting Practice (UK GAAP), the Statement of Recommended Practice for registered housing providers: Housing SORP 2018 Update and Financial Reporting Standard 102 ('FRS 102'). Platform Housing Group is a Public Benefit Entity under the requirements of FRS 102. The Group is required under the Co-operative and Community Benefit Societies (Group Accounts) Regulations 1969 to prepare consolidated Group accounts.
The financial statements comply with the Co-operative and Community Benefit Societies Act 2014, the Co-operative and Community Benefit Societies (Group Accounts) Regulations 1969, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2019. Following the implementation of FRS 102, housing properties are stated at deemed cost at the date of transition and additions are record at cost. Investment properties are recorded at valuation. The accounts are presented in sterling and are rounded to the nearest GBP1,000.
As a Public Benefit Entity, The Group has applied the 'PBE' prefixed paragraphs of FRS102.
Statement of Comprehensive Income for the year ended 31 March 2022
Year ended Year ended
31 March 2022 31 March 2021
Note GBP000 GBP000
Turnover 1&2 296,924 269,873
Operating Expenditure 1&2 (167,926) (141,077)
Cost of Sales 1&2 (39,230) (28,286)
Gain on disposal of property,
plant and equipment - 9,298 8,929
Increase/(Decrease) in valuation
of investment properties - 150 720
Operating Surplus 99,216 110,159
Interest receivable 4 382 244
Interest payable and financing
costs 4 (56,676) (54,337)
Surplus before tax 42,922 56,066
Taxation - - -
Surplus for the period after
tax 42,922 56,066
Actuarial gain / (loss) in respect
of pension schemes - 16,682 (18,449)
Total comprehensive income for
the period 59,604 37,617
=============== ===============
The Group's results all relate to continuing activities.
Statement of Financial Position at 31 March 2022
31 March 2022 31 March 2021
Note GBP000 GBP000
Fixed assets
Housing properties 5 2,744,997 2,609,866
Other tangible fixed assets - 8,176 11,359
Intangible fixed assets - 5,066 4,196
Investment properties - 16,645 16,495
Homebuy loans receivable - 7,750 8,220
Fixed asset investments - 17,327 16,141
Investment in subsidiaries - -
-------------- --------------
2,799,961 2,666,277
Current assets
Stocks: Housing properties for sale - 24983 38,683
Stocks: Other - 1,722 146
Trade and other Debtors - 16,675 17,846
Cash and cash equivalents 277,946 188,603
-------------- --------------
321,326 245,278
Less: Creditors: amounts falling due within one year - (102,268) (210,279)
Net current assets / (liabilities) 219,058 34,999
Total assets less current liabilities 3,019,019 2,701,276
-------------- --------------
Creditors: amounts falling due after more than one year - (1,947,932) (1,673,559)
Provisions for liabilities
Pension provision - (49,955) (65,842)
Total net assets 1,021,132 961,875
Non-equity share capital - - -
Income and expenditure reserve 804,486 744,693
Revaluation reserve 216,646 217,182
-------------- --------------
Total reserves 1,021,132 961,875
Consolidated Statement of Changes in Reserves
Income Property Investment Total
and Expenditure Revaluation Revaluation
Reserve Reserve Reserve
GBP000 GBP000 GBP000 GBP000
Balance at 1 April 2020 703,790 220,258 650 924,698
Surplus for the year 56,066 - - 56,066
Actuarial gain / (loss)
on pension scheme (18,449) - - (18,449)
Valuation in the year - - (440) (440)
Transfer between reserves 3,286 (3,286) - -
Balance at 31 March
2021 744,693 216,972 210 961,875
----------------- ------------- ------------- ----------
Surplus for the period 42,922 - - 42,922
Actuarial gain / (loss)
on pension scheme 16,682 - - 16,682
Valuation in the period - - (347) (347)
Transfer between reserves 189 (189) - -
Balance at 31 March
2022 804,486 216,783 (137) 1,021,132
================= ============= ============= ==========
Consolidated Statement of Cash Flows for the period ended 31 March 2022
Year ended 31 March 2022 Year ended 31 March 2021
GBP000 GBP000
Net cash generated from operating activities (see note i
below) 165,869 125,948
Cash flow from investing activities
Purchase of tangible fixed assets (221,549) (173,240)
Proceeds from sales of tangible fixed assets 28.360 14,652
Grants received 18,176 69,169
Interest received 180 204
Homebuy and Festival Property Purchase loans repaid 470 518
Cash flow from financing activities
Interest paid (56,963) (54,493)
New secured debt 296,196 418,119
Repayment of borrowings (141,396) (296,118)
Net change in cash and cash equivalents 89,343 104,759
Cash and cash equivalents at the beginning of the period 188,603 83,844
------------------------- -------------------------
Cash and cash equivalents at the end of the period 277,946 188,603
------------------------- -------------------------
Note i
Surplus for the period 42,922 56,066
Adjustments for non-cash items
Depreciation of tangible fixed assets 43,443 34,593
Amortisation of grants (5,065) (5,368)
Impairment losses - 5,943
Movement in properties and other assets in the course of sale 12,142 (3,264)
Increase in stock (18) 1
(Increase) / decrease in trade and other debtors 1,503 (2,564)
(Decrease) / increase in trade and other creditors 26,182 (1,100)
Movement in investments (1,186) (770)
Increase / (decrease) in provisions (554) 1,693
Adjustments for investing or financing activities
Proceeds from sale of tangible fixed assets (9,298) (8,929)
Interest payable 56,676 54,337
Interest receivable (382) (244)
Movement in fair value of financial instruments (346) (3,726)
Increase in valuation of investment property (150) (720)
Net cash generated from operating activities 165,869 125,948
------------------------- -------------------------
1. Turnover, Cost of Sales, Operating Expenditure and Operating Surplus
Group Year ended 31 March 2022
Turnover Cost of Sales Operating Expenditure Operating Surplus / (Deficit)
GBP000 GBP000 GBP000 GBP000
Social housing lettings
(see note 2) 234,597 - (152,000) 82,597
Other social housing activities
Development services (3) - (3,822) (3,825)
Management services 206 - (654) (448)
Support services 342 - (505) (163)
Sale of Shared Ownership first
tranche 48,844 (39,173) - 9,671
Other 1,230 - (188) 1,042
--------- -------------- ---------------------- ------------------------------
50,619 (39,173) (5,169) 6,277
Activities other than social
housing
Developments for sale 42 (57) - (15)
Student accommodation 9 - (15) (6)
Market rents 1,377 - (1,025) 352
Other 10,280 - (9,717) 563
--------- -------------- ---------------------- ------------------------------
11,708 (57) (10,757) 894
Total 296,924 (39,230) (167,926) 89,768
========= ============== ====================== ==============================
1. Turnover, Cost of Sales, Operating Expenditure and Operating Surplus (continued)
Group Year ended 31 March 2021
Turnover Cost of Sales Operating Expenditure Operating Surplus / (Deficit)
GBP000 GBP000 GBP000 GBP000
Social housing lettings
(see note 2) 225,291 - (128,650) 96,641
Other social housing activities
Development services 53 - (3,822) (3,769)
Management services 153 - (469) (316)
Support services 366 - (569) (203)
Sale of Shared Ownership first
tranche 32,099 (26,007) - 6,092
Other 1,392 - (296) 1,096
--------- -------------- ---------------------- ------------------------------
34,063 (26,007) (5,156) 2,900
Activities other than social
housing
Developments for sale 2,335 (2,279) - 56
Student accommodation 9 - (12) (3)
Market rents 1,189 - (635) 554
Other 6,986 - (6,624) 362
--------- -------------- ---------------------- ------------------------------
10,519 (2,279) (7,271) 969
Total 269,873 (28,286) (141,077) 100,510
========= ============== ====================== ==============================
2. Turnover and Operating Expenditure for Social Housing Lettings
Year ended 31 March 2022
Group General Needs Affordable Rent Supported Low Cost Home Intermediate Total
Housing Housing & Ownership rent
Housing for
older people
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Income
Rent receivable
net of
identifiable
service
charges 136,041 41,155 13,724 18,039 2,566 211,525
Service charge
income 5,647 1,220 5,816 2,892 - 15,575
Other grants 25 79 - 23 - 127
Amortised
government
grants 2,622 1,445 115 824 31 5,037
Other income 2,281 52 - - - 2,333
---------------- ---------------- ---------------- ---------------- ---------------- ----------
Turnover from
social housing
lettings 146,616 43,951 19,655 21,778 2,597 234,597
Operating Expenditure
Management (17,865) (4,816) (3,415) (3,043) (282) (29,421)
Service charge
costs (8,522) (2,306) (8,407) (3,044) (326) (22,605)
Routine
maintenance (30,430) (6,387) (3,844) (222) (369) (41,252)
Planned
maintenance (3,996) (900) (398) (15) (44) (5,353)
Major repairs
expenditure (7,762) (824) (1,800) 24 (31) (10,393)
Bad debts (965) (315) (282) (58) (59) (1,679)
Depreciation of
housing
properties (25,718) (9,361) (2,737) (3,134) (347) (41,297)
Operating
expenditure on
social housing
lettings (95,258) (24,909) (20,883) (9,492) (1,458) (152,000)
Operating
surplus on
social housing
lettings 51,358 19,042 (1,228) 12,286 1,139 82,597
================ ================ ================ ================ ================ ==========
Void losses (1,784) (644) (524) (616) (142) (3,710)
2. Turnover and Operating Expenditure for Social Housing Lettings (continued)
Year ended 31 March 2021
Group General Needs Affordable Rent Supported Shared Intermediate Total
Housing Housing & Ownership rent
Housing for
older people
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Income
Rent receivable
net of
identifiable
service
charges 133,331 37,971 13,686 16,030 2,430 203,448
Service charge
income 5,628 1,201 5,783 2,743 3 15,358
Other grants 768 137 66 111 9 1,091
Amortised
government
grants 2,699 1,584 123 911 26 5,343
Other income 2 49 - - - 51
---------------- ---------------- ---------------- ---------------- ---------------- ----------
Turnover from
social housing
lettings 142,428 40,942 19,658 19,795 2,468 225,291
Operating expenditure
Management (17,327) (4,109) (3,067) (2,791) (272) (27,566)
Service charge
costs (7,651) (2,137) (7,938) (3,213) (286) (21,225)
Routine
maintenance (24,369) (5,019) (3,135) (156) (184) (32,863)
Planned
maintenance (4,555) (1,060) (599) (118) (40) (6,372)
Major repairs
expenditure (4,815) (443) (962) (456) (216) (6,892)
Bad debts (742) (235) (171) (128) (25) (1,301)
Depreciation of
housing
properties (19,475) (7,868) (2,105) (2,668) (315) (32,431)
Operating
expenditure on
social housing
lettings (78,934) (20,871) (17,977) (9,530) (1,338) (128,650)
Operating
surplus on
social housing
lettings 63,494 20,071 1,681 10,265 1,130 96,641
================ ================ ================ ================ ================ ==========
Void losses (1,387) (416) (435) (934) (165) (3,337)
3. Units
Social housing properties in management at end of period
March 2022 March 2021
Owned and Managed not Total Owned not Total Owned Total Managed Total Owned
managed owned managed managed
Number Number Number Number Number Number Number
General Needs 28,408 8 28,416 8 28,416 28,244 28,244
Affordable
rent 7,359 4 7,363 - 7,359 6,902 6,897
Supported 270 - 270 65 335 284 342
Housing for
older people 2,975 - 2,975 - 2,975 2,973 2,973
Intermediate
rent 469 - 469 - 469 458 458
------------- ------------- ------------- ------------- ------------ -------------- ------------
Total 39,481 12 39,493 73 39,554 38,861 38,914
*Shared
Ownership
<100% 5,905 6 5,911 - 5,905 5,606 5,600
Social Leased
@100% sold 1,128 - 1,128 - 1,128 1,118 1,118
------------- ------------- ------------- ------------- ------------ -------------- ------------
Total social 46,514 18 46,532 73 46,587 45,585 45,632
Non social
housing
Non social
rented 111 - 111 - 111 112 112
Non social
leased 392 - 392 29 421 378 407
Total stock 47,017 18 47,035 102 47,119 46,075 46,151
============= ============= ============= ============= ============ ============== ============
*The equity proportion of a shared ownership property is counted as one unit.
4. Net Interest
Interest receivable and similar income Year ended 31 March 2022 Year ended 31 March 2021
GBP000 GBP000
On financial assets measured at amortised
cost:
Interest receivable 382 244
382 244
================================== ===============================
Interest payable and financing costs Year ended 31 March 2022 Year ended 31 March 2021
GBP000 GBP000
On financial liabilities measured at amortised cost:
Loans repayable 45,846 43,860
Loan breakage costs 8,716 6,395
Costs associated with financing 4,038 3,735
--------------------------- ---------------------------
58,600 53,990
On defined benefit pension scheme:
Expected return on plan assets (4,017) (3,955)
Interest on scheme liabilities 5,366 5,049
--------------------------- ---------------------------
1,349 1,094
On financial liabilities measured at fair value:
Interest capitalised on housing properties (3,273) (747)
56,676 54,337
=========================== ===========================
Interest has been capitalised at the rate of 3.53% (inclusive of fees) (2021: 3.40%)
5. Tangible Fixed Assets - Housing Properties
Housing Properties Housing Properties Completed Shared Shared Ownership Total
held for letting in the course of Ownership Properties in the
construction Properties course of
construction
GBP000 GBP000 GBP000 GBP000 GBP000
Cost
At 1 April 2021 2,332,305 101,557 430,230 49,251 2,913,343
Reclassification (148) 119,005 108 79,073 198,038
Additions 15,650 - - - 15,650
Works to existing
properties (11,157) - (8,233) - (19,390)
Disposals (175) - - - (175)
Fair value disposal
Transfer (to)/from
current assets - - 710 (26,653) (25,943)
Interest capitalised - 1,982 - 1,291 3,273
Schemes completed 101,351 (101,351) 58,165 (58,165) -
At 31 March 2022 2,437,827 121,192 480,980 44,797 3,084,796
-------------------- ------------------- ------------------- ------------------- ----------
Depreciation
At 1 April 2021 284,322 - 19,155 - 303,477
Charge for the year 37,316 - 3,080 - 40,396
Disposals (3,528) - (546) - (4,074)
At 31 March 2022 318,110 - 21,689 - 339,799
-------------------- ------------------- ------------------- ------------------- ----------
Net Book Value
-------------------- ------------------- ------------------- ------------------- ----------
At 31 March 2022 2,119,717 121,192 459,291 44,797 2,744,997
==================== =================== =================== =================== ==========
At 31 March 2021 2,047,983 101,556 411,075 49,251 2,609,865
==================== =================== =================== =================== ==========
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