8 October 2009 - Circle Anglia’s 08/09 Financial Statements

View our annual report and financial statement 2008/09

Highlights include:

• Launching its first bond into the international capital markets for £275 million, breaking the record for the sector meaning that the group has fully secured its funding requirements for at least the next 10 years. The Group has £446 million of secured undrawn facilities.
• The properties owned increased in value by £157 million as a result of the detailed stock condition surveys carried out during the year. There was an impairment of £2.9 million, principally from one development scheme.
• Achieving a Moody’s rating of Aa3 in October 2008, demonstrating its financially robust approach to risk management.
• Outperforming 2008-09 targets creating 1,669 new homes in the year, including 367 for other housing associations. There were 3,868 properties in development at the year end.
• In 2008 Old Ford Housing Association took up the transfer from Tower Hamlets of the housing stock at the Parkside Estate and the Mardyke Estate increasing its stock in management by over 2,000 homes. Circle Anglia has since secured unanimous planning permission for the £80 million regeneration of the Mardyke estate.
• We launched House Exchange Direct to help increase mobility of social housing residents across the country – meaning that residents can use the service even if their landlord has not signed up.

In line with its core purpose of enhancing life chances, this year Circle Anglia has continued to take a long term view of its financial plans whilst making sure that there is sufficient liquidity and effective risk management in the short term. This is to protect the delivery of promises to tenants and to deliver the development programme providing much needed affordable housing.

This approach is reflected in the financial results for the year 08/09 which for the first time include Roddons, Mole Valley, Parkside and Mardyke as stock transfers for the full year. The turnover for the group excluding joint ventures increased by 23.8%, however cost of sales and operating costs increased by 38.0%. The increase in turnover reflects a full year of the four new partners that joined in 2007/08.

As a result of the inclusion of four relatively new stock transfers which require significant investment in the early years and a substantial development programme funded by the group, Circle Anglia has a deficit for the year of £10.9 million (2008 restated: surplus £28.0 million). The results are considered to be in line with its financial plans, and the deficits seen in the early years of stock transfers as promises are delivered, and the investment needed for Group funded development, are repaid in time as rents cover costs.

Calum Mercer, Executive Director of Finance at Circle Anglia, said: “We have rapidly adjusted to the changing economic environment, ensuring we remain financially secure and manage any risks while investing in life chances. Our focus has remained unwavering on delivering our promises to tenants, and delivering more affordable housing in a difficult economic climate. Our long term view to finance ensures Circle Anglia remains financially robust, that our business plan is fully funded and that we can continue to deliver against our promises in the exciting year that lies ahead.

“We ensured that our plans could cope with the possibility of rents falling as a result of negative RPI. In addition, our investment in stock condition surveys covering over 90 per cent of our properties provided accurate and up to date information for our planned maintenance programmes. This has contributed to a significant increase in the value of the properties we own.”

Highlights so far for the year 09/10 include:

• Mercian Housing Association’s Board and Shareholders voted to join Circle Anglia bringing 3,358 homes into the group.
• Secured planning permission for £80 million regeneration of Mardyke estate in Essex.
• Gaining a positive stock transfer vote from the residents of Merton – bringing a further 9,000 homes into the organization via a newly established partner.
• Circle 33 gained the equivalent of 2 stars in Audit Commission inspection.
• EPIC achieved 3 Star equivalent rating for its care services by the Commission for Quality Care. It also commenced £3.3m worth of new contracts the last financial year.
• Roddons achieved high praise from inspectors, who described the 18 month old organization of having the maturity of an organization that is four/five years old.

ENDS

View our Annual Report and Financial Statement 2008-9

Further information

For more information about Circle Anglia and its partners, please browse this site, email pressoffice@circleanglia.org or call 0845 234 0824.

08/10/09 19:39