Group Accounts 2004

REGISTERED OFFICE: 3 TRAMWAY AVENUE STRATFORD LONDON E15 4PN SWITCHBOARD: 020 8522 2000 MINICOM: 020 8522 2006 FAX: 020 8522 2001 WWW.EAST-THAMES.CO.UK REGISTERED UNDER THE COMPANIES ACT 1985 (4091100) REGISTERED CHARITY (1084952) HOUSING CORPORATION REGISTERED NO. LH4309 MEMBER OF THE NATIONAL HOUSING FEDERATION This publication is printed on recycled paper

Group Accounts 2003-2004

EAST THAMES GROUP LIMITED Financial statements for the year ended 31 March 2004

Contents 3

Board members, senior staff, auditors and solicitors

4

Report of the Board

7

Report of the auditors

8

Consolidated balance sheet

9

Consolidated income and expenditure account and consolidated statement of total recognised surpluses and deficits

10

Consolidated cash flow statement

11

Parent balance sheet

12

Parent income and expenditure account and Parent statement of total recognised surpluses and deficits

13

Parent cash flow statement

14

Notes to the financial statements

Board members, senior staff, auditors and solicitors Board

Registered Office

Chairman - Mr R. Henchley Vice Chair - Mr J. Mallender (appointed Vice Chair December 2003) Treasurer - Mr C. Villiers

3 Tramway Avenue, Stratford, LONDON E15 4PN

Auditors Other Members Mr O. Olanrewaju Mr B. Robertson Mr J. Norman Mrs R. Fleming (resigned March 2004) Mr G. McLeary Mr C. Dankwa Ms C. Thomas Mr D. Edwards Mr D. Goodman Mr R. Chilton (co-opted from March 2004) Mr A. Bridgwater (from March 2004)

Senior Staff Group Chief Executive - Ms J. Barnes Deputy Chief Executive - Mr M. Heys Assistant Chief Executive (Regeneration and New Business) - Mr F. Vickery Group Director of Development and Technical Services - Mr K. Carter Group Director of Corporate Services - Ms D. Boakye Director of Information Technology - Ms J. Kutner Group Company Secretary - Mr H. Potter

KPMG LLP 1 Forest Gate, Brighton Road, Crawley, WEST SUSSEX RH11 9PT

Solicitors Devonshires Salisbury House, London Wall, LONDON EC2M 5QY

Trowers and Hamlins Sceptre Court, 40 Tower Hill, LONDON EC3N 4DX

Bankers Barclays Bank plc Business Banking, PO Box 544, 1st Floor, 54 Lombard Street, LONDON EC3V 9EX

Registered Charity 1084952 Registered under the Companies Act 1985 4091100 Registered by The Housing Corporation No. LH 4309

3

Report of the Board

The Board presents its report and audited financial statements for the year ended 31 March 2004.

Review of the year The year again saw significant growth. During the year the Group has added 464 units of accommodation taking its portfolio of properties to 11,451 units.

Legal status The Group is a charity, registered under the Companies Act 1985 and is a Registered Social Landlord under the Housing Act 1996. On 1 April 2001 it assumed responsibility as the parent company for four operating subsidiaries, East Thames Housing Association Limited (now East Homes Limited), East Thames Care Limited (now East Living Limited), Boleyn & Forest Housing Society Limited (now East Choice Limited) and Network East Foyers (now East Potential). On 31 December 2001, it assumed responsibility as the parent company, for East Street Services Limited formerly known as B&F Commercial Services Limited, a company established to undertake the Group’s non-charitable activities.

During the year, the Group spent £53.8 million acquiring and developing its housing stock and an additional £3.1 million (including improvements on housing for rent, aids and adaptations and estate improvements) on its continuing substantial programme of rehabilitating, modernising and repairing its housing stock. It is the intention to fully upgrade each property at least every 25 years.

Performance for the year The Group achieved a surplus for the year of £8.1 million (2003: £4.6 million). Revenue reserves have increased to £45.5 million (2003: £36.9 million) and restricted, designated reserves and consolidated reserves total £5.1 million (2003: £5.6 million).

Principal activities The Parent Company’s principal activities are the provision of central services to its operating subsidiaries. The four operational subsidiaries are East Thames Housing Association Limited (now East Homes Limited) which provides social housing, Boleyn & Forest Housing Society Limited (now East Choice Limited) which provides low cost home ownership, East Thames Care Limited (now East Living Limited) which provides care and supported housing provision and Network East Foyers (now East Potential) which manages Foyers on behalf of the Group.

Disabled employees Applications for employment from disabled persons are given full and fair consideration for all vacancies, having regard to their particular aptitude and abilities. In the event of employees becoming disabled, every effort is made to retain them in order that their employment within the organisation may continue. It is the policy of the Group that training, career development and promotion opportunities should be available to all employees.

Health and Safety The Group takes its responsibilities for Health and Safety very seriously and has established a training and implementation programme, led by a Health and Safety committee dedicated to this topic.

4

Report of the Board

(continued)

Employee involvement

Identification and evaluation of key risks

The Group has continued its practice of consulting and keeping employees informed on matters affecting them and on the progress of the Group. This is carried out in a number of ways including a formal forum for consultation, departmental meetings and a variety of newsletters.

The Group made charitable donations during the year amounting to some £27,749. No donations were given to charities of which board members are Trustees.

Management responsibility has been clearly defined for the identification, evaluation and control of significant risks.

There is a formal and on-going process of management review in each area of the Group’s activities. This process is co-ordinated through a regular reporting framework by the Group Audit and Risk Management Committee. The Group Executive and Officer Risk Management Panel regularly consider reports on significant risks facing the Group. The Group Chief Executive/relevant Managing Director is responsible for reporting to the respective Board(s) any significant changes affecting key risks.

Internal Controls

Monitoring and corrective action

The Board has overall responsibility for establishing and maintaining the whole system of internal control and for reviewing its effectiveness. This applies to all companies within the East Thames Group.

A process of control self assessment and regular management reporting on control issues provides hierarchical assurance to successive levels of management and to the Board. This process continues to be developed to ensure a rigorous approach and includes action for ensuring that corrective action is taken in relation to any significant control issues.

Donations

The Board recognises that no system of internal control can provide absolute assurance or eliminate all risk. The system of internal control is designed to manage risk and to provide reasonable assurance that key business objectives and expected outcomes will be achieved. It also exists to give reasonable assurance about the preparation and reliability of financial and operational information and the safeguarding of the Group’s assets and interests.

In meeting its responsibilities, the Board has adopted a risk-based approach to internal controls which are embedded within the normal management and governance process. This approach includes the regular evaluation of the nature and extent of risks to which the Group is exposed and is consistent with Turnbull principles as incorporated in the Housing Corporation’s circular R2-25/01: Internal Controls Assurance.

Control environment and control procedures The Board retains responsibility for a defined range of issues covering strategic, operational, financial and compliance issues including treasury strategy and new investment projects. The Board has adopted the National Housing Federation Code of Governance - Competence and Accountability. This is used as a basis for the Group’s policies with regard to quality, integrity and ethics. It is supported by a framework of policies and procedures, with which employees must comply. These cover issues such as delegated authority, segregation of duties, accounting, treasury management, health and safety, data and asset protection and fraud prevention and detection.

The process adopted by the Board in reviewing the effectiveness of the system of internal control, together with some of the key elements of the control framework includes:

5

Report of the Board

Information and financial reporting systems

Statement of responsibilities of the Board

Financial reporting procedures include detailed budgets for the year ahead and forecasts for subsequent years. These are reviewed and approved by the Board. The Board also regularly review key performance indicators to assess progress towards the achievement of key business objectives, targets and outcomes.

The Companies Act 1985 and the Housing Act 1996 require the Board to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Group and of the surplus of the Group for that period. In preparing those financial statements the Board has:

(continued)

The internal control framework and the risk management process are subject to regular review by Internal Audit who are responsible for providing independent assurance to the Board via its Group Audit and Risk Management Committee. The committee considers internal control and risk regularly during the year.

The Board has received the Group Chief Executive’s annual report, has conducted its annual review of the effectiveness of the system of internal control and has taken account of any changes needed to maintain the effectiveness of the risk management control process.

The Board confirms that there is an ongoing process for identifying, evaluating and managing significant risks faced by the Group. This process has been in place throughout the year under review, up to the date of the annual report, and is regularly reviewed by the Board.

In addition to the above the Group has implemented a number of changes to its approach and day-to-day management of risk and audit matters, applying current best practice to both areas of its work.

selected suitable policies and applied them consistently; made judgements and estimates that are reasonable and prudent; followed applicable accounting standards, subject to any material departures disclosed and explained in the financial statements; and prepared the financial statements on a going concern basis The Board is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Group and ensure that the financial statements comply with the Companies Act 1985, the Housing Act 1996 and the Accounting Requirements for Registered Social Landlords General Determination 2000.

It is also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditors A resolution for the reappointment of KPMG LLP as auditors of the Group is to be proposed at the forthcoming Annual General Meeting.

H.A. POTTER Group Company Secretary

6

Report of the independent auditors, KPMG LLP, to the members of East Thames Housing Group Limited

We have audited the financial statements on pages 8 to 34.

This report is made solely to the Company’s members as a body, in accordance with Schedule 1, paragraph 16 and 18 to the Housing Act 1996, and the Companies Act 1985. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of the Board and Auditors The Company’s Board is responsible for preparing the Board’s report and, as described on page 6, the financial statements in accordance with applicable United Kingdom law and accounting standards. Our responsibilities, as independent auditors, are established in the United Kingdom by statute, the Auditing Practices Board, the Housing Corporation and by our profession’s ethical guidance.

We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Companies Act 1985, the Housing Act 1996 and the Accounting Requirements for Registered Social Landlords General Determination 2000.

We also report to you, if in our opinion, a satisfactory system of control over transactions has not been maintained, if the Company has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding the directors’ remuneration and transactions with the Company are not disclosed.

We read the other information accompanying the financial statements and consider whether it is consistent with those statements. We consider the implications for our report if we become aware of any apparent misstatement or material inconsistencies with the financial statements.

Basis of audit opinion We conducted our audit in accordance with Auditing Standards issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements.

It also includes an assessment of the significant estimates and judgements made by the Board in the preparation of the financial statements and of whether the accounting policies are appropriate to the Company’s circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

Opinion In our opinion the financial statements give a true and fair view of the state of affairs of the Company and the Group as at 31 March 2004 and of their surplus for the year then ended and have been properly prepared in accordance with the Companies Act 1985, the Housing Act 1996 and the Accounting Requirements for Registered Social Landlords General Determination 2000.

KPMG LLP Chartered Accountants Registered Auditor 1 Forest Gate Brighton Road Crawley West Sussex RH11 9PT

7

Consolidated balance sheet at 31 March 2004

2004 ÂŁ'000

2003 ÂŁ'000 (Restated)

12 13

403,639 8,514 412,153

328,157 5,806 333,963

Investments Cost of Homebuy Less: Social Housing Grant

12

37,209 (37,209) -

12,569 (12,569) -

Current assets Investments Stock Debtors Cash at bank and in hand

14 15 16

4,508 7,418 9,090 2,275 23,291 (27,785) (4,494)

11,440 14,309 6,968 3,193 35,910 (18,184) 17,726

407,659

351,689

Note Tangible fixed assets Housing properties at valuation Other fixed assets

Creditors: amounts falling due within one year Net current assets

18

Total assets less current liabilities Creditors: amounts falling due after more than one year

19

164,779

173,305

Provision for liabilities and charges

22

100

100

Capital and reserves Share capital Revenue reserve Designated reserve Restricted reserve Consolidation reserve Revaluation reserve

23 24 24 24 24 24

45,516 1,953 2,912 263 192,136 242,780 407,659

36,922 2,069 3,240 263 135,790 178,284 351,689

The financial statements were approved by the Board on 8 July 2004 and signed on its behalf by:

Richard Henchley CHAIRMAN 8

Charles Villiers TREASURER

Henry Potter GROUP COMPANY SECRETARY

Consolidated income and expenditure account for the year ended 31 March 2004

Turnover Operating costs Operating surplus Surplus on property disposals Net interest payable and similar charges Surplus on ordinary activities before taxation Tax on surplus on ordinary activities Surplus for the year Transfer from revaluation reserve Transfer to restricted reserves Transfer from designated reserves Transfer from restricted reserves Unallocated surplus Revenue reserves brought forward Revenue reserves carried forward Consolidated Statement of total recognised surpluses and deficits for the year ended 31 March 2004 Surplus for the year Unrealised surplus on revaluation of housing properties Prior year adjustment (as per note 12) Total recognised surpluses for the year

Note 2 2 4 8 9 24 24 24 24 24

12

Note of historical cost surpluses and deficits for the year ended 31 March 2004 Surplus on ordinary activities before taxation Realisation of property revaluation surpluses of previous years Historical cost surplus on ordinary activities before taxation Historical cost surplus for the year after taxation and gift aid

2004 £'000 66,700 (56,145) 10,555 6,410 (8,837) 8,128 8,128 25 (1,036) 116 1,361 8,594 36,922 45,516

2003 £'000 55,521 (43,625) 11,896 1,921 (9,332) 4,485 159 4,644 2,336 (1,001) 1,533 7,512 29,410 36,922

2004 £'000 8,128 55,932 43,552 107,612

2003 £'000 4,644 36,352 40,996

2004 £'000 8,128 25 8,153 8,153

2003 £'000 4,485 2,336 6,821 6,980

All turnover and operating surpluses are attributable to continuing operations.

The financial statements were approved by the Board on 8 July 2004 and signed on its behalf by:

Richard Henchley CHAIRMAN

Charles Villiers TREASURER

Henry Potter GROUP COMPANY SECRETARY 9

Consolidated cash flow statement for the year ended 31 March 2004

Net cash flow from operating activities

2004 ÂŁ'000 27,028

2003 ÂŁ'000 14,383

538 (9,071) (8,533)

294 (10,888) (10,594)

(45,263) (3,824) (26,819) 40,730 (224) 7,300 990 11,429 19 8,713 (6,949)

(59,269) (1,144) (8,198) 37,125 2,373 8,986 719 9,281 6 4,787 (5,334)

11,546

(1,545)

28

6,379 (18,387) (12,008)

7,371 (9,053) (1,682)

28

(150) (116) (728)

(103) (15) (3,345)

Note 27

Returns on investments and servicing of finance Interest received Interest paid Net cash outflow on servicing of finance Capital expenditure and financial investments Purchase and construction of housing properties Purchase of other fixed assets Purchase of investments Social housing grant received Other capital grants received Proceeds of first tranche sales Proceeds Homebuy Sales of housing properties Sales of other fixed assets Sales of investments Cash outflow from investing activities Cash inflow/(outflow) before financing Financing Housing loans received Housing loans repaid Cash outflow from financing Corporation Tax Gift aid Decrease in cash in the year

10

Parent balance sheet at 31 March 2004

Note 13

Tangible fixed assets

2004 ÂŁ'000 742

2003 ÂŁ'000 -

1,026 982 2,008 (367) 1,641

1,945 1,945 (449) 1,496

2,383

1,496

681 1,702 2,383

(239) 1,735 1,496

Current assets Debtors Cash at bank and in hand

16 17

Creditors: amounts falling due within one year Net current assets

18

Total assets less current liabilities Capital and reserves Share capital Reserves Designated Reserves

23 24 24

The financial statements were approved by the Board on 8 July 2004 and signed on its behalf by:

Richard Henchley CHAIRMAN

Charles Villiers TREASURER

Henry Potter GROUP COMPANY SECRETARY 11

Parent income and expenditure account for the year ended 31 March 2004

Note 2 2

Turnover Operating costs Operating surplus/(deficit) Net interest receivable Surplus/(deficit) on ordinary activities Transfer to designated reserves Unallocated surplus/(deficit) Revenue reserves brought forward Revenue reserves carried forward

8 24 24

Statement of total recognised surpluses and deficits for the year ended 31 March 2004 Surplus/(deficit) for the year Total recognised surpluses/(deficits) for the year Note of historical cost surpluses and deficits for the year ended 31 March 2004 Surplus/(deficit) on ordinary activities before taxation Historical cost surplus/(deficit) on ordinary activities before taxation Historical cost surplus/(deficit) for the year after taxation

2004 £'000 9,239 (8,389) 850 70 920 920 (239) 681

2003 £'000 7,390 (7,855) (465) 38 (427) (427) 188 (239)

2004 £'000

2003 £'000

920 920

(427) (427)

2004 £'000 920 920 920

2003 £'000 (427) (427) (427)

The financial statements were approved by the Board on 8 July 2004 and signed on its behalf by:

Richard Henchley CHAIRMAN 12

Charles Villiers TREASURER

Henry Potter GROUP COMPANY SECRETARY

Parent cash flow statement for the year ended 31 March 2004

Net cash inflow/(outflow) from operating activities

Note 27

Returns on investments and servicing of finance Interest received Net cash inflow on investments and servicing of finance Cash inflow/(outflow) before financing Purchase of fixed assets Gift aid Increase/(decrease) in cash in the period

28

2004 ÂŁ'000 1,687

2003 ÂŁ'000 (1,853)

70 70

38 38

1,757 (742) (33)

(1,815) (15)

982

(1,830)

13

Notes to the financial statements 31 March 2004

1. ACCOUNTING POLICIES (a) Basis of accounting The financial statements of the parent company and the Group are prepared under the historical convention (as amended by the revaluation of the Group’s housing assets) in accordance with the Companies Act 1985, the Housing Act 1996 and comply with Accounting Requirements for Registered Social Landlords General Determination 2000. Applicable accounting standards and statements of recommended practice have been followed.

Basis of consolidation The Group financial statements consolidate the financial statements of East Thames Group Limited and its operating subsidiaries East Thames Housing Association Limited, Boleyn & Forest Housing Society Limited, East Street Services Limited, formerly known as B&F Commercial Services Limited, East Thames Care Limited and Network East Foyers.

(b) Turnover Turnover represents rental and service charge income from tenants, management fees, sales of properties developed for other Registered Social Landlords and certain revenue grants.

(c) Housing properties Housing properties represent the Group’s investment in properties for rent and properties subject to shared ownership leases.

Completed housing properties held for letting are stated at Existing Use Value for Social Housing (EUV-SH). Shared ownership properties are stated at Existing Use Value for Social Housing (EUV-SH) less the Net Present Liability to repay Social Housing Grant (SHG). Housing properties under construction are stated at cost less related SHG and other capital grants.

14

Cost comprises the cost of acquiring land and buildings, development costs, rehabilitation costs, attributable interest charges incurred during the development period and the capital element of expenditure incurred in respect of the major repair programmes of stock modernisation and estate improvement.

Development and modernisation costs include the capitalisation of the Group’s own directly related employee costs from the direct labour force involved in the development process and directly attributable development management costs and other direct costs. The cost of shared ownership properties is stated net of proceeds of first tranche sales. Land donated by public authorities is brought into cost at market value at the time of donation.

(d) Depreciation of housing properties Freehold land is not depreciated. Depreciation is charged so as to write down the value of freehold housing properties other than freehold land to their estimated residual value on a straight line basis over their remaining expected useful economic lives as follows: Houses

100 to 150 years

Low level flats

100 to 150 years

Blocks over four floors

80 years

These useful economic lives apply equally to the Group’s rented, shared ownership and care stock of housing properties.

Properties held on long leases are depreciated over their estimated useful economic lives or the life of the lease if shorter. In the case of care properties the depreciation calculated on the basis set out above is immaterial due to the high residual values of the properties and is not recorded. For all properties impairment reviews are carried out on an annual basis in accordance with FRS 11.

Notes to the financial statements 31 March 2004

1. ACCOUNTING POLICIES (continued) (e) Social Housing Grant

(h) Other tangible fixed assets

Social Housing Grant (SHG) is payable by the Housing Corporation and is utilised to reduce the capital costs of a scheme to a value which may be supported by rental income. Where SHG is received in advance of aggregate expenditure it is disclosed as a short-term creditor.

Service charge assets and other fixed assets, such as office buildings, are stated at cost less depreciation.

Depreciation is provided evenly on the cost of service charge assets and other tangible fixed assets to write them down to their estimated residual values over their expected useful lives on a straight line basis at the following rates:

When the social housing grant is retained following the disposal of property, it is shown under the disposal proceeds or recycled capital grant funds in creditors.

SHG is repayable in certain circumstances. When SHG becomes repayable it is included as a current liability until it is repaid. The repayment of SHG is generally subordinated to the repayment of housing loans, as agreed with the Housing Corporation.

Freehold offices

4%

Lifts

4%

Office furniture and improvements

14.3%

Service equipment

20%

Motor vehicles

25%

Computer equipment

33.3%

(f) Other grants Other grants include grants from local authorities and other organisations, primarily the London Docklands Development Corporation. Capital grants are treated in the same way as SHG and include amounts attributable to land donated by public authorities. Grants in respect of revenue expenditure are included in the income and expenditure account in the same period as the expenditure to which they relate.

(g) Stock Stock is valued at the lower of cost and net realisable value.

(i) Pensions The Group participates in the Social Housing Pension Scheme final salary pension scheme and retirement benefits to Group employees are funded by contributions from all participating employers and employees in the scheme. Payments are made to a fund operated by the Pensions Trust, an independent trust providing superannuation benefits for employees of voluntary organisations. These payments are made in accordance with periodic calculations by consulting actuaries and are based on pensions costs applicable across the various participating associations taken as a whole.

15

Notes to the financial statements 31 March 2004

1 ACCOUNTING POLICIES (continued) (j) Provision for furniture and equipment replacement

(m) Taxation

The Group has an obligation under various revenue grant agreements to replace furniture and equipment relating to certain tenancies or repay grant received. The provision is based on the Group’s liability to replace the furniture and equipment as and when necessary.

East Thames Group Limited is a registered charity and is registered under the 1985 Companies Act and is not generally subject to corporation tax.

(k) Restricted and designated reserves for major repairs The Group’s commitment to fund major repairs is recognised by the transfer of accumulated surpluses to restricted and designated reserves. Annual contributions are made to the reserves as follows: 1) Restricted Reserves: Schemes on which major repairs SHG is available - an amount equal to 90% of the reinvestment fund calculation for the year. In accordance with the Housing Corporation regulations, transfers are made out of the restricted reserve in line with qualifying modernisation expenditure on existing stock purchased prior to 1988.

2) Designated Reserves: Schemes on which major repairs SHG is not available - an amount based on the expected future liabilities.

(l) Agency managed hostels The Group has brought into its financial statements only income and expenditure under its direct control in respect of agency managed hostels.

16

(n) Homebuy A subsidiary of the group, Boleyn & Forest Housing Society Limited participates in the Homebuy scheme.

Purchasers are given a grant of 25% of the value of their home by the Society which is in turn reimbursed by the Housing Corporation by way of social housing grant. No rent is payable to the Society. The Society receives an allowance for handling the transaction, paid by way of further grant.

(o) Starter Home Initiative A subsidiary of the group, Boleyn & Forest Housing Society Limited participates in the Starter Home Initiative Scheme. This is funded through SHG. The value of the grants received and paid out is shown on the balance sheet. The Society also receives an allowance for handling the transaction, paid by way of a further grant.

Notes to the financial statements 31 March 2004

2 PARTICULARS OF TURNOVER, COST OF SALES, OPERATING COSTS AND OPERATING SURPLUS

Turnover £'000

Operating costs £'000

2004 Operating surplus/ (deficit) £'000

29,820 13,324 1,184 15,048 4,382

17,444 10,705 1,184 14,099 2,861

12,376 2,619 949 1,521

13,825 2,116 724 1,697

63,758

46,293

17,465

18,362

206 2,736

711 9,141

(505) (6,405)

(455) (6,011)

2,942

9,852

(6,910)

(6,466)

66,700

56,145

10,555

11,896

Turnover £'000

Operating costs £'000

2004 Operating surplus/ (deficit) £'000

2003 Operating surplus/ (deficit) £'000

Other income and expenditure Regeneration and development services Group recharge Other

206 8,751 282

711 7,678 -

(505) 1,073 282

(455) (187) 177

Total

9,239

8,389

850

(465)

GROUP Income and expenditure from lettings Housing accommodation Special needs accommodation Support charges - Fixed contract Temporary social housing Shared ownership accommodation

Other income and expenditure Regeneration and development services Other

Total

PARENT

2003 Operating surplus/ (deficit) £'000

17

Notes to the financial statements 31 March 2004

3 PARTICULARS OF INCOME AND EXPENDITURE FROM LETTINGS Care and Supported Housing Housing accommodation

Supported housing

Residential care homes

Temporary social housing

Shared ownership

2004 ÂŁ'000

2003 ÂŁ'000

Income from lettings Rent receivable net of identifiable service charges

26,402

1,840

326

14,386

2,573

45,527

36,910

Service charges receivable Gross rents receivable

1,460 27,862

4,537 6,377

145 471

14,386

830 3,403

6,972 52,499

7,920 44,830

Less: Rent losses from voids Net rents receivable

(444) 27,418

(246) 6,131

(75) 396

(555) 13,831

3,403

(1,320) 51,179

(1,059) 43,771

2,007

1,421

4,654

-

-

8,082

6,943

GROUP

Revenue grants from local authorities and other agencies Revenue grants from the Housing Corporation

-

1,046

138

-

-

1,184

1,713

395 29,820

722 9,320

5,188

1,217 15,048

979 4,382

3,313 63,758

1,123 53,550

Expenditure on letting activities Services Management Overhead Allocation Routine maintenance Planned maintenance Rent losses from bad debts

1,376 6,732 273 4,696 2,393 373

1,080 4,149 800 665 42

393 3,766 720 150 (5)

13,256 612 231

234 244 369 -

3,083 28,147 1,793 6,492 2,393 641

2,654 20,317 1,126 5,039 1,882 1,420

Revenue element of major repairs expenditure

Other grants Other income Total income from lettings

18

1,078

-

-

-

-

1,078

1,165

Housing properties depreciation Other costs Total expenditure on lettings

523 17,444

9 6,745

120 5,144

14,099

2,014 2,861

523 2,143 46,293

660 925 35,188

Operating surplus on letting activities

12,376

2,575

44

949

1,521

17,465

18,362

Notes to the financial statements 31 March 2004

4 SURPLUS ON PROPERTY SALES GROUP

Sales proceeds £'000

Sales of older properties Homebuy Sales of properties developed for sale

Cost of sales £'000

2004 Surplus £'000

2003 Surplus £'000

11,429 987 7,300

5,272 734 7,300

6,157 253 -

1,673 207 41

19,716

13,306

6,410

1,921

5 UNITS OF ACCOMMODATION IN MANAGEMENT GROUP

Hostels and shared housing

Self contained rental stock

Managed

by East Thames

Managed by others

Hostels/ Selfshared Temporary contained housing social units bedspaces housing

Total

Managed

by East Thames

10,987

7,056

410

304

171

418

105

38

1,049

1,436

31 March 2004 11,451

7,081

432

227

489

119

95

90

1,497

1,421

1 April 2003

Supported Managed housing by others stock

Managed for others

Shared ownership

19

Notes to the financial statements 31 March 2004

6 ACCOMMODATION MANAGED BY OTHER BODIES IN RECEIPT OF SUPPORTED HOUSING MANAGEMENT GRANT GROUP

Name of Body Ashiana Outlook Care Limited New Testament Assembly Community Project Barnardos Newham Asian Women's Project Barking and Dagenham Women's Aid Network East Foyers (subsidiary see note 14) Shortstop MIND in Waltham Forest Norwood Ravenswood Homeless Young People's Project Single Homeless Project Redbridge Community Housing Ltd NACRO Tower Hamlets Consortium Richmond Fellowship Hibiscus Housing Project Waltham Forest Specialist Housing Consortium Young People's Housing Project Total

No. of Units 31.3.04

No. of Units 31.3.03

-

7 63 4 6 14 16 366 13 7 43 40 60 8 6 4 20 41 19 737

Amount of Supported Housing Management Grant £'000 21 180 10 20 65 40 219 39 3 124 117 167 12 17 15 28 123 56 1,256

As Supported Housing Management Grants ceased on 31 March 2003, no income is shown this year.

7 OPERATING SURPLUS This is arrived at after charging: Depreciation of housing properties Depreciation of tangible fixed assets Operating leases land and buildings Auditors' remuneration - for audit services - for non audit services 20

Group 2004 £'000

Group 2003 £'000

Parent 2004 £'000

Parent 2003 £'000

523 657 12,258

660 996 5,875

-

-

59 8

74 74

12 -

24 21

Notes to the financial statements 31 March 2004

8 NET INTEREST PAYABLE AND SIMILAR CHARGES Group 2004 £'000 203

Group 2003 £'000 580

Parent 2004 £'000 70

Parent 2003 £'000 38

(9,091)

(10,208)

-

-

(8,888)

(9,628)

70

38

Interest payable capitalised on housing properties under construction

150

400

-

-

Interest receivable transferred to the capital grant recycling fund

(99)

(104)

-

-

(8,837)

(9,332)

70

38

Group 2004 £'000

Group 2003 £'000

Parent 2004 £'000

Parent 2003 £'000

Corporation tax on income

-

-

-

-

Corporation tax adjustment in respect of year ended 31 March 2002

-

(159)

-

-

-

(159)

-

-

Interest receivable Interest payable on loans and leases: - repayable wholly within five years - repayable in more than five years

9 TAXATION ON SURPLUS ON ORDINARY ACTIVITIES

21

Notes to the financial statements 31 March 2004

10 EMPLOYEES Group 2004 No.

Group 2003 No.

Parent 2004 No.

Parent 2003 No.

415 275 7 49 746

365 262 11 44 682

128 128

122 122

Group 2004 No.

Group 2003 No.

Parent 2004 No.

Parent 2003 No.

404 263 6 49 722

324 251 7 44 626

124 124

113 113

Group 2004 £'000

Group 2003 £'000

Parent 2004 £'000

Parent 2003 £'000

16,758 1,510 819 19,087

14,305 1,164 715 16,184

3,536 336 264 4,136

2,958 258 239 3,455

Average number of employees Administration Care Staff Wardens, caretakers, cleaners Direct labour

Number of employees expressed in full time equivalents Administration Care Staff Wardens, caretakers, cleaners Direct labour

Staff costs Wages and salaries Social Security costs Other pension costs

The Group participates in the Social Housing Pension Scheme (SHPS). SHPS is a multi-employer defined benefit scheme. The Scheme is funded and is contracted out of the state scheme.

22

SHPS is a multi-employer scheme, where the share of assets and liabilities applicable to each employer is not identified, the Group has accounted for its pension costs on a defined contribution basis as permitted by FRS 17.

Notes to the financial statements 31 March 2004

10 EMPLOYEES (continued) The last formal valuation of the Scheme was performed at 30 September 2002 by a professionally qualified actuary using the "projected unit credit" method. The market value of the Scheme's assets at the last valuation date was ÂŁ650 million.

The Group paid contributions at the rate of 10.6% during the accounting period. Member contributions vary between 2.0% and 5.0% depending on their age at the date of joining the Scheme.

It is not possible to identify the share of underlying assets and liabilities belonging to individual participating employers.

Financial assumptions The financial assumptions underlying the valuation were as follows:

-

Rate Rate Rate Rate Rate

of of of of of

% per annum return on future contributions 6.6 return on accumulated assets 5.4 salary increases 4.5 pension increases 2.5 price inflation 2.5

The accumulated assets of the Scheme were assumed to earn the same return as if they had been invested in a portfolio comprising 100% UK equities for non-pensioner liabilities and 25% UK equities/75% gilts for pensioner liabilities.

The valuation revealed a shortfall of assets compared with the value of liabilities of some ÂŁ117 million (equivalent to a past service funding level of 85%). The long term joint contribution rate required from employers and members to meet the cost of future benefit accrual was assessed as 15% of pensionable salaries.

Following consideration of the results of actuarial valuation, with effect from 1 April 2004 most employers (including East Thames Housing Group) are required to contribute at the standard rate of 11.7% of pensionable salaries.

Member contributions will also be increased by 1.1% from 2.0%-5.0% to 3.1%-6.1% of pensionable salaries depending on age. Employers that participate in the Scheme on a non-contributory basis pay a joint contribution rate (i.e. a combined employer and employee rate). This rate will increase from 15.0% to 17.3% of pensionable salaries with effect from 1 April 2004.

Employers that have closed the Scheme to new members are required to pay an additional employer contribution loading of 3% to reflect the higher costs of a closed arrangement. A small number of employers are required to contribute at a different rate to the standard 11.7% to reflect the amortisation of a surplus or deficit on the transfer of assets and past service liabilities from another pension scheme into the SHPS. The next valuation is due at 30 September 2005.

23

Notes to the financial statements 31 March 2004

11 DIRECTORS, MEMBERS AND SENIOR STAFF EMOLUMENTS The Directors of the parent company as defined under the Accounting Requirements for Registered Social Landlords General Determination 2000 are its Management Board, the Chief Executive and any other person who is a member of the senior management team.

Basic salary £

Benefits Pension in kind contributions £ £

Parent Total 2004 £

Parent Total 2003 £

The aggregate amount of emoluments paid to the directors was

476,832

1,196

41,088

519,116

485,728

Emoluments of the Chief Executive, who was also the highest paid director, excluding pension contributions.

101,885

1,196

-

103,081

99,470

The Chief Executive is an ordinary member of the pension scheme and has no enhanced or special terms and does not have an individual pension arrangement to which East Thames Housing Group or any of its subsidiaries makes a contribution.

Expenses paid during the year to members of the Board amount to £24,786 (2003: £18,898). No payments of benefits other than those permitted, were made to the persons referred to in Part 1, Schedule 1 of the Housing Act 1996.

12 TANGIBLE FIXED ASSETS - HOUSING PROPERTIES Completed housing properties held for letting are stated at Existing Use Value for Social Housing (EUV-SH) and shared ownership properties are stated at EUV-SH less the Net Present Liability to repay Social Housing Grant. Housing properties have been valued by professional valuers, FPD Savills, Chartered Surveyors. The last full valuation of completed housing properties was prepared as at 31 March 2004 in accordance with the Appraisal and Valuation Manual of the Royal Institution of Chartered Surveyors. This has resulted in a positive valuation adjustment as follows:

Completed properties at valuation East Thames Housing Group Boleyn & Forest Housing Society

£'000 320,324 58,698

Housing properties under construction at cost East Thames Housing Group Boleyn & Forest Housing Society Consolidated

1,890 22,727 403,639

Details of these properties at valuation are set out below

24

Notes to the financial statements 31 March 2004

12 TANGIBLE FIXED ASSETS - HOUSING PROPERTIES (continued) Housing properties held for letting £'000

Housing properties under construction £'000

Shared ownership properties held for letting £'000

Shared ownership properties under construction £'000

Total £'000

218,759 43,552 262,311 4,661

1,055 1,055 (4,661)

50,763 50,763 7,799

14,549 14,549 (7,799)

285,126 43,552 328,678 -

1,537 (594) 52,566 229 150 (277) (519) 320,064

1,204 152 11 1,345 2,784 1,890

2,890 3,366 (5,860) 58,958

19,181 (3,204) 22,727

24,812 (594) 55,932 152 240 1,495 (9,341) 2,265 403,639

Valuation as at 31 March 2004 is represented by: Gross cost 507,699 Social Housing Grant (295,737) Other grants (51,089) Revaluation surplus 159,191 320,064

26,603 (24,235) (478) 1,890

63,982 (37,969) 32,945 58,958

37,763 (15,036) 22,727

636,047 (372,977) (51,567) 192,136 403,639

GROUP

Valuation At 1 April 2003 as previously reported Prior year adjustment At 1 April 2003 as restated Schemes completed in year Additions and Major repairs capitalised net of SHG and other grants Write back of accumulated depreciation Revaluation adjustment Interest capitalised Own direct labour costs capitalised Own development management costs capitalised Disposals Transfer to stock At 31 March 2004

Housing properties brought forward at 1 April 2003 have been restated to include certain housing properties which were inadvertently omitted from the valuation included in the previous year's accounts. A corresponding adjustment

Housing properties comprise: Freehold land and buildings Long leasehold land and buildings

has been made to the revaluation reserve as set out in note 24. No adjustment is required to the depreciation charge in the prior year's income and expenditure account on the grounds of immateriality.

2004 £'000 403,176 463 403,639

2003 £'000 284,141 463 284,604

25

Notes to the financial statements 31 March 2004

12 TANGIBLE FIXED ASSETS - HOUSING PROPERTIES (continued) 2004 £'000

2003 £'000

37,931 (37,931) 722 (722) -

13,022 (13,022) 453 (453) -

Freehold office £'000

Plant, equipment and furniture £'000

Motor vehicles £'000

Total £'000

Cost At 1 April 2003 Additions Disposals At 31 March 2004

6,808 2,676 (8) 9,476

5,419 1,148 (1,017) 5,550

358 (85) 273

12,585 3,824 (1,110) 15,299

Depreciation At 1 April 2003 Charged in year Disposals At 31 March 2004

(2,463) (266) 6 (2,723)

(4,071) (331) 568 (3,834)

(245) (61) 78 (228)

(6,779) (658) 652 (6,785)

Net book value At 31 March 2004 At 31 March 2003

6,753 4,345

1,716 1,348

45 113

8,514 5,806

Cost At 1 April 2003 Additions Disposals At 31 March 2004

-

742 742

-

742 742

Net book value At 31 March 2004 At 31 March 2003

-

742 -

-

742 -

Investment in Homebuy: Long term investment in properties (Homebuy) Less: Grants received Grants recycled Decrease in investment in properties

13 TANGIBLE FIXED ASSETS - OTHER GROUP

PARENT

26

Notes to the financial statements 31 March 2004

14 INVESTMENTS AND RELATED PARTY TRANSACTIONS At 31 March 2004 (31 March 2003: £11,440,000) East Thames Housing Group Limited held the following investments: £’000 Passmore Urban Renewal Limited £450 Fixed term Treasury Deposit £4,058 TOTAL £4,508 East Thames Housing Association Limited, together with three other registered social landlords and the London Borough of Newham has invested in Passmore Urban Renewal Limited. This Industrial and Provident Society has been set up for the promotion of urban regeneration in the London Borough of Newham. At 31 March 2004, East Thames Housing Association Limited had invested £450,000 in this project.

The parent company owns one £1 nominal share in Boleyn & Forest Housing Society Limited, whose main activity is developing and managing shared ownership schemes. The parent company has entered into trust arrangements with the members of Boleyn & Forest Housing Society Limited which require it to classify it as a subsidiary. Boleyn & Forest Housing Society Limited is a Registered Social Landlord with charitable status, registered with The Housing Corporation.

The parent company owns one £1 nominal share in East Thames Care Limited whose main activity is providing care and housing management for supported housing and residential care homes. The parent company has entered into trust arrangements with the members of East Thames Care Limited which require it to classify it as a subsidiary.

The parent company has entered into trust arrangements with the members of Network East Foyers which require it to classify it as a subsidiary. The principal activity of Network East Foyers is the provision of housing management services at the Stratford (Focus E15), Harlow, Redbridge, Drapers Foyers and First Step Assessment Centre and related training and information services to young people in east London and Harlow.

East Thames Housing Association Limited has entered into a lease and leaseback arrangement for the Stratford (Focus E15) Foyer with Network East Foyers a fellow subsidiary for a period of 25 years. The net margin passing to Network East Foyers amounts to £5,000 per annum.

The parent company have a 100% shareholding in East Street Limited, formerly known as B&F Commercial Services Limited, whose main activity is to undertake property management services for other Associations and to deal with other non charitable housing activities.

27

Notes to the financial statements 31 March 2004

15 STOCK AND WORK IN PROGRESS

Completed properties for sale to other Registered Social Landlords Properties for sale to other Registered Social Landlords under construction

Group 2004 £'000

Group 2003 £'000

7,968

11,663

(550)

2,646

7,418

14,309

Group 2004 £'000

Group 2003 £'000

Parent 2004 £'000

Parent 2003 £'000

3,981 (2,291) 1,690

5,159 (2,220) 2,939

-

-

5,202 2,198 -

2,572 1,457 -

160 866

103 190 1,652

9,090

6,968

1,026

1,945

16 DEBTORS

Due within one year: Arrears of rent and service charges Less: Provision for bad and doubtful debts

Other debtors Prepayments and accrued income Amounts due from group companies (net of provisions)

17 CASH AT BANK AND IN HAND Included in cash at bank and in hand are amounts totalling Group: £200,000 (Parent Company: £ Nil) 2003 Group: £1,147,662 (Parent Company: £ Nil) which are subject to restrictions and are not freely available for general use.

28

Notes to the financial statements 31 March 2004

18 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Loans (note 20) Rent and service charges received in advance Corporation Tax Other taxation and social security Bank overdraft Accruals and deferred income Other creditors Capital Grant Recycling Fund Disposal Proceeds Fund

Group 2004 £'000

Group 2003 £'000

Parent 2004 £'000

Parent 2003 £'000

1,590 1,121 478 6,894 16,331 916 455 27,785

1,817 1,000 150 270 190 4,491 8,724 542 1,000 18,184

122 197 48 367

443 6 449

Group 2004

Group 2003

13

13

Payments to creditors Average number of days between receipt and payment of purchase invoices

19 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Loans (note 20) Deferred income Capital Grant Recycling Fund Disposal Proceeds Fund Other

Group 2004 £'000

Group 2003 £'000

153,732 1,402 7,142 1,393 1,110 164,779

165,513 1,456 4,182 1,075 1,079 173,305

The deferred income represents the premium on the HACO loan, net of issue costs. This premium will be amortised over the period of the loan.

29

Notes to the financial statements 31 March 2004

20 LOAN ANALYSIS

Due within one year: Bank loans Orchardbrook Limited (originally The Housing Corporation) loans Other loans

Due after more than one year: Bank loans Orchardbrook Limited (originally The Housing Corporation) loans HACO Other loans Capitalised costs

Loans are repayable as follows: Within one year Between one and two years Between two and five years After more than five years

Group 2004 £'000

Group 2003 £'000

Parent 2004 £'000

Parent 2003 £'000

1,246

1,327

-

-

22 322 1,590

181 309 1,817

-

-

Group 2004 £'000

Group 2003 £'000

Parent 2004 £'000

Parent 2003 £'000

100,397

111,458

-

-

5,864 25,000 22,914 (443) 153,732

5,812 25,000 23,515 (272) 165,513

-

-

Group 2004 £'000

Group 2003 £'000

Parent 2004 £'000

Parent 2003 £'000

1,590 1,553 36,651 115,971 155,765

1,817 5,544 11,047 149,194 167,602

-

-

Loans and finance leases to the value of Group: £155 million (Parent Company: £ Nil) are secured by a combination of fixed charges and variable charges on individual properties.

The loans from Orchardbrook Limited are repaid in halfyearly instalments over the estimated life of the scheme on which the loan is secured, at fixed rates of interest ranging from 9.50% to 10.625%. The final instalments are due for repayment in the period 2005 to 2037.

30

The final instalments on bank, HACO and other loans are due for repayment in the period 2006 to 2029.

Out of the total of loans and finance leases of Group: £155 million (Parent Company: £ Nil) interest is payable at fixed rates varying from 5.05% to 16.5% on Group: £110 million (Parent Company: £ Nil) and at rates linked to LIBOR on the remaining Group: £45 million (Parent Company: £ Nil).

Notes to the financial statements 31 March 2004

21 ANNUAL OBLIGATIONS UNDER OPERATING LEASES Group 2004 £'000

Group 2003 £'000

643 10,424 1,869

771 8,236 813

Group dilapidation repair 2004 £'000

Group

100 100

100 100

2004 £

2003 £

Shares of £1 each issued and fully paid At 1 April 2003 Shares issued during the year Shares surrendered during the year At 31 March 2004

44 5 49

46 (2) 44

Authorised Shares of £1 each

92

92

Operating leases on land and buildings which expire: Within one year In the second to fifth years inclusive Over five years

22 PROVISION FOR LIABILITIES AND CHARGES

At 1 April 2003 Provided during the year Utilised during the year At 31 March 2004

Total 2003 £'000

23 SHARE CAPITAL

The shares provide members with the right to vote at general meeting, but do not provide any rights to dividends or distributions on winding up.

31

Notes to the financial statements 31 March 2004

24 RESERVES GROUP At 1 April 2003 Prior Year Adjustment As restated Surplus for the year Deficit after property revaluation Transfers Utilisations

Revaluation £'000 92,238 43,552 135,790 56,371 (25)

Restricted £'000 3,237 3,237 1,036 (1,361)

192,136

2,912

At 31 March 2004

Designated Consolidated £'000 £'000 2,069 263 2,069 263 (116) 1,953

PARENT At 1 April 2003 Surplus for the year Transfers Utilisations At 31 March 2004

Restricted reserves comprise: Donations Reinvestment fund (note 25)

Designated reserves comprise: Major repairs new funded schemes Grant from Boleyn & Forest Housing Society Limited Cyclical repairs and maintenance

32

The Group plans its financial affairs to ensure that each year revenue income exceeds revenue expenditure. This policy ensures that the Group has a margin of safety to manage unexpected expenditure or shortfalls in income.

The annual surpluses ensure that East Thames Housing Group is able to meet its commitment to providers of

Revenue £'000 36,922 36,922 8,128 1,502 (1,036)

Total £'000 134,729 43,552 178,281 8,128 56,371 2,538 (2,538)

263

45,516

242,780

Designated £'000 1,735 (33)

Revenue £'000 (239) 920 -

Total £'000 1,496 920 (33)

1,702

681

2,383

Group 2004 £'000

Group 2003 £'000

200 2,712

201 3,039

2,912

3,240

Group 2004 £'000

Group 2003 £'000

Parent 2004 £'000

Parent 2003 £'000

218 1,735 -

218 1,735 116

-

1,735 -

1,953

2,069

-

1,735

private finance and continue to provide social housing.

Unlike commercial organisations the Group's rules prevent the distribution of reserves. Instead these are applied to furthering our aims and objectives. At 31 March 2004 the Group's reserves were all used in financing investments in social housing.

Notes to the financial statements 31 March 2004

25 REINVESTMENT FUND The surplus rental income calculated in the manner determined under Section 55(3) of the Housing Act 1988 amounted to:

Group and Parent 2004 £'000

Group and Parent 2003 £'000

3,037 1,036 (1,361)

3,194 1,001 (1,158)

2,712

3,037

Group 2004 £'000

Group 2003 £'000

Capital commitments Expenditure contracted for but not provided in the accounts

93,455

58,338

Expenditure authorised by the Board but not contracted for

52,100

42,925

145,555

101,263

At 1 April 2003 Contributions for the year Utilised during the year At 31 March 2004

26 FINANCIAL COMMITMENTS

33

Notes to the financial statements 31 March 2004

27 RECONCILIATION OF OPERATING SURPLUS TO OPERATING CASH FLOWS

Operating surplus/(deficit) before taxation Depreciation of fixed assets Deficit on sale of other fixed assets Surplus on sale of housing properties Net decrease in provisions

Movement in Working Capital Decrease/(increase) in stock (Increase)/decrease in debtors Increase/(decrease) in creditors Net cash inflow from operating activities

Group 2004 £'000

Group 2003 £'000

Parent 2004 £'000

Parent 2003 £'000

16,966 1,180 442 (6,410) (54)

13,817 1,747 53 (1,921) (146)

850 -

(465) -

12,124

13,550

850

(465)

6,891 (2,457) 10,470 27,028

(2,560) (1,437) 4,830 14,383

919 (82) 1,687

3,638 (5,026) (1,853)

28 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT Group 2004 £'000

Group 2003 £'000

Parent 2004 £'000

Parent 2003 £'000

(Decrease)/increase in cash in the period Cash inflow from increase in debt and lease financing

(728) 12,008

(3,345) 1,682

982 -

(1,830) -

Change in net debt resulting from cash flows

11,280

(1,663)

982

(1,830)

(164,327) (153,047)

(162,664) (164,327)

982

1,830 -

Group 2004 £'000

Group 2003 £'000

Parent 2004 £'000

Parent 2003 £'000

2,275 (1,590) (153,732) -

3,193 (190) (1,817) (165,513) -

982 -

-

(153,047)

(164,327)

982

-

Net debt at the start of the period Net debt at the end of the period

29 ANALYSIS OF NET DEBT

Cash at bank and in hand Bank overdraft Loans due within one year Loans due after more than one year Finance leases due within one year

34

MISSION, AIMS AND VALUES Our mission To make a positive and lasting contribution to the neighbourhoods in which we work.

Our key aims 1

Providing high-quality homes and services that meet the needs of our customers.

2

Ensuring that our customers can influence our services.

3

Influencing local, regional and national thinking, policies and strategies.

4

Developing well informed, committed and enthusiastic staff.

5

Actively using our financial and organisational strength.

Our values We will be customer focused

We will be professional

responding to what our customers say

being straightforward in everything we do

providing excellent and reliable services

adopting a flexible approach to delivering services

enabling customer choice

We will be ambitious creating new approaches to service delivery producing excellent outcomes striving for excellence in everything we do

demonstrating a respectful approach to our customers being open, reliable and consistent

We will be leaders empowering our staff to act responsibly showing creativity in service provision inspiring those who work with us campaigning on key issues

35