Pennaf Housing Groups Annual Financial Statements

PENNAF LIMITED

FINANCIAL STATEMENTS FOR YEAR ENDED 31st MARCH 2018

The Group is showing an operating surplus of £10.839m for 2017/18 compared to £9.842m for the year ended 2016/17. This compares favourably also with the Groups budgeted position of £8.728m.

However, there is an overall deficit of £12.082m. This is after allowing for breakage costs of £15.904m as part of the Group's decision to review its borrowing in the first quarter of this year. On 7th June the Group repaid £126.943m of Clwyd Alyn Housing Association Limited's debt with six lenders, with the associated breakage costs.

On the same day PenArian Housing Finance plc received £160m offering £250m publicly listed bonds, retaining £90m. This was then on-lent to Clwyd Alyn to repay its existing debt, pay the breakage costs, and retain £17m for further development. The new interest rate applicable is 3.212%, which compares very favourably with its previous average loan rate of 4.02%.

The Group's Operating Surpluses continue to improve.

The full Financial Statements are available through the Group's Website.