Unaudited results for the Group

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Year-end Unaudited Results for the Group

As at 31 March 2019

ClwydAlyn has performed well over the year to 31 March 2019. The surplus for the period was £2.74m, ahead of the budgeted figure for the year of £2.59m but down from last year's figure of £3.88m.

For the year 2018/19, the Group is showing:

* excluding exceptional costs related to refinancing

Attached as Appendix 1, 2 and 3 are the unaudited Summary Financial Statements for the year to 31 March 2019.

Business Update

(a) Year-end performance

· Turnover rose by £3.5m to £42.9m (2018: £39.4m) reflecting a growth in properties and an increase in average rental levels of 4%.

· Operating Surplus declined by £1.7m (2018: £10.8m).

· Underlying Total Surplus after tax was £2.74m, which is ahead of budget.

· 412 new affordable homes completed since start of development strategy.

· 273 units were completed this year (2018: 139 homes).

· Operational Performance during the year

o Average Voids Turnaround - 15 days (2018: 14 days).

o Current Tenant arrears as a % of Gross debit - 3.85% (2018: 3.76%).

o Customer satisfaction with Repairs and Maintenance - 82% (2018: 83%)

o Customer satisfaction with Contact Centre - 96% (2018: 91%)

o Overall satisfaction with Services delivered - 90% (2018: 88%)

(b) Leadership Changes

In April 2018, Clare Budden became Group Chief Executive following the retirement of the former Group Chief Executive, Graham Worthington.

Clare has brought over 30 years' experience in the housing sector having previously been with Flintshire County Council, CDS, Greater Hornby and New Generation.

Following a review of the business she has reorganised the Group structure (see Section C below) and the Senior Executive Team to align more closely with key business priorities and therefore better achieve the Group's aspirations.

This restructuring was completed in March 2019 with the appointment of Paul McGrady as the newly created Executive Director of Resources. Paul previously undertook a similar role for another Housing Association and has responsibility for Finance, IT, Governance, Performance and Health and Safety co-ordination.

(c) Group Reorganisation

During the year the Board completed the consolidation of the former three Housing Associations within the Group into a single Association with charitable aims named ClwydAlyn Housing which came into effect from 1st April 2019. The simplified Group structure strengthens governance, reduces the level of complexity and proves greater clarity on the roles of Group Members.

The Group's associated governance arrangements have also been reviewed and updated to support the simplified structure. This includes appointing the new Clwyd Alyn Board from April, along with a new committee structure.

As of 1st April 2019 the Group comprised the following legal entities;

(d) Credit Rating

The Group's Investment Grade rating has been reaffirmed by Standard & Poor's (S&P) as being "A" with a stable outlook.

(e) Pension

The Group had a pension deficit of £5.5m in 2018, which has risen to £10.2m in 2019. This is attributable to a change in the valuation and a change to the apportionment of the deficit by the Social Housing Pension Scheme to Employers. The Group closed the Defined Benefit pension scheme to all staff on 31 March 2016.

(f) Development

The Group's plan to deliver 1,500 units by March 2022 remains on track.

In the period between the start of the development strategy in 2017 and March 2019, 412 units have been completed a cost of £59.5m.

During the last financial year ending 31st March 2019, this included:

· three new Extra Care Schemes for older persons providing 196 new homes (including state of the art dementia-friendly units);

· 67 new homes for families/single persons for Rent; and

· 10 new Rent to Own properties.

£16m of capital funding was received from Welsh Government towards new projects during the year.

In addition, over 14 acres of land with planning permission was acquired for development in future years.

Currently there are a further 176 units on site at a cost of £29.5m. There are a further 847 units in acquisition/design and pre-contract stage equating to a total cost of around £131m.

Cash balances together with undrawn bank facilities are sufficient to meet all current development expenditure once Welsh Government Capital funding and operational cash flows are taken into account.

Investor Meetings

The Executive Team has announced a series of meetings in London and Edinburgh, with existing and potential investors, on 11 and 18 June 2019. These meetings are designed to provide a performance update and further information on the Group restructure and Leadership changes.

Appendix 1

GROUP STATEMENT OF COMPREHENSIVE INCOME

For the period ended 31 March 2019

The Group's turnover and expenses all relate to continuing operations.

* Subject to Audit  

Appendix 2

GROUP STATEMENT OF CHANGES IN RESERVES

As at 31 March 2019

2019 figures are subject to Audit  

Appendix 3

GROUP STATEMENT OF FINANCIAL POSITION

As at 31 March 2019

* Subject to Audit