Charity Commission Number: 1017481 Company Number: 2787689 Homes and Communities Agency number: 4679 Target Housing Limited (Limited by Guarantee) Report and financial statements For the year ended 31 March 2024 Target Housing Limited (Limited by Guarantee) Report and financial statements For the year ended 31 March 2024 Contents Page Company information Board report 2-11 Statement of Board's responsibilities 12 Independent auditors, report 13-16 Accounting policies 17-19 Income and Expenditure Account 20 Statement of Comprehensive Income 21 Balance sheet 22 Cash flow statement 23 Notes to the financial statements 24-34 Target Housing Limited (Limited by Guarantee) Company Information Board members Karen Rick- Chair Rachel Heath - Treasurer Mike Day Richard Casken Simon Holcombe (appointed 1 August 2023) Sharon Moya Jones (appointed 1 August 2023) Hannah Weinhold {resigned 1 Oclober 2023) Francesca Rockett (resigned 17 January 2024) Tom Doughty (appointed 28 May 2024} Jimitha Jacob (appointed 15 July 2024) Secretsry Shaun Needham (resigned 15 May 2023) Steven Crane (appointed 15 May 2023) Chief Execulive Off icer Shaun Needham (resigned 15 May 2023) Steven Crane (appointed 15 May 2023) Registered off ice A5 Bradmarsh Business Park Bow Bridge Close Rotherham S601BY Audilors Hawsons Chartered Accountants Statutory Auditors Pegasus House 463a Glossop Road Sheffield S102QD Bankers The Co-operative Bank 78182 Pinstone Street Sheffield S12HP Charity Bank Fosse House 182 High Street Tonbridge Kent TN91 BE Target Housing Limited (Limited by Guarantee) Board Report For the year ended 31 March 2024 The Board of Truslees presents their report, which incorporates the strategic report, together with the audited financial statements for the year ended 31 March 2024 and confirm that these financial statements comply wilh current statutory requirements and wilh those of the governing instrument. Chair's introduction Annual Re ort 2023- 2024 I began my last report by suggesting it had been a year of change with key personnel moving on to retirement or stepping down from the Board. 2023124 has seen further change in this area. Two Board members have stood down and I would like to thank Fran and Hannah for their valued contribution to Target, the effect of which has helped Target to achieve the position it is in today. Four new Board members have also joined, bringing with them a range of valuable expertise in a variety of backgrounds. With our newer Board members, it was therefore timely and welcomed that we arranged a professionally facilitated away day to reevaluate and cement the organisation we strive to be; Agile, Innovative, Resilient and People Focussed. This was highlighted at a March staff conference, held to underline and provide clarity to all staff on where we are, where we want to go and the challenges we need to overcome to get Ihere. Our new CEO has hit the ground running and we have seen a flurry of acttvity. not only in successful tenders and new business but also in re-shaping of some departments. The financial challenges of the cost-of-living crisis continues to have an impact. Despite this we proudly remain a Joseph Rowntree Living Wage accredited employer. The Board, and l as Chair, are particularly keen to ensure we reward our statt as well as possible. A salary benchmarking paper from the CEO will lead to the Board awarding a pay rise significantly above inflation for all staff for 2024125. Our partnerships with Social And Sustainable Capital (SASC} and Charity Bank remain strong and are very much part of our long term strategy. Wilh the continued support and understanding of these two organisations, together with a talented and dedicated property procurement team the Target Housing property portfolio stood at 127 in March 2024. Doncaster Local Authority asked Target to be part of their Single Homelessness Accommodation Programme ISHAP} bid; the bid wwth Doncaster was SUC￿ssful wilh Target gelling 45 % grant funding via Homes England, to purchase 18 properties to house rough sleepers in Doncaster. In Sheffield a similar bid was submitted for 10 properties and was also successful, however Target will also receive the revenue funding for the provision of support. Both projecls are initially for 3 years. A successful tender in Barnsley has resulled in the capital funding for four properties, specifically for those people affected by domestic abuse and sexual violence. Additional strong bids saw Target; Retain our existing project in Sheffield for a further 5 years. Partner with IDAS in a successful bid to Doncaster council for 25 properties. Win a five year contract for a 30 bed hostel with Rotherham local authority Receive grant funding for a Cosl-of-Living Crisis advisor for 3 years Receive 700/. funding through Skills Bank to aid the bespoke training and coaching of our staff. Receive a 12K activities grant from SYHA Target Housing Limited (Limited by Guarantee) Board Report For the year ended 31 March 2024 (continued) The addition of two key posts within Ihe senior leadership team has seen a significanl impacl. Amanda Fields as Head of Care and Maria Halliwell as Head of HR have provided immediate value to Target and their expertise is already evident. On behalf of the Board, I would like to pul il into record our heartfelt thanks to the entire staff team for the amazing professionalism and dedication they have shown Ihis year. The Board and Senior Management Team have continued to work together to identity possible development opportunities as well as any risks and threats ensuring Target continues to develop as an organisation. I cannot end without thanking my fellow Board members who like our staff continue to rise to the challenge of providing support and guidance to myself as Chair as well as the senior management and wider staff teams. Karen Rick Chair of Board ## Target Housing Limited (Limited by Guarantee) ## Board Report ## For the year ended 31 March 2024 (continued) ## Structure, governance and management ## Constitution of the charity Target Housing Limited is a company limited by guarantee (company number: 2787689) and is a registered charity (charity number: 1017481), working within its Memorandum and Articles of Association. It is a Registered Social Landlord with the Homes and Communities Agency (HCA registration No 4679) ~~.~~ ## Board of Trustees The Board of Trustees is elected by the members of the company and one third of them retire by rotation every year. The present members of the Board of Trustees who are directors of the company for the purposes of company law are listed on page 1 ~~.~~ New Trustees are recruited via the existing Board of Trustees and by advertising appropriately, e ~~.~~ g ~~.~~ Sheffield’s Voluntary Action Newsletter and Sheffield Volunteer Bureau. Potential new Trustees are invited to attend one or more Board of Trustees meetings as an observer, before they confirm a commitment to becoming a Trustee. Appointment of new Trustees is confirmed by the members annually at the AGM ~~.~~ Trustees bring a range of skills and expertise to their role ~~.~~ There is an induction process for new Trustees which includes the specific work of Target Housing, how it functions and is managed, and its values, ethos and objectives ~~.~~ This process begins with the Chair and is followed through by the CEO, each in turn ensuring that there is an understanding of the work of the organisation and the new Trustee’s role in the governance of Target Housing, and ensuring the delivery of its stated aims and objectives. New Trustees will have the opportunity to meet with staff and to clarify their roles and responsibilities. They can request to see our accommodation and meet with service users. All Trustees provide information about their background, skills, experience and expertise ~~.~~ A Trustee Handbook is provided and the Board undertake periodic Training opportunities singly and together ~~.~~ ## Organisational Structure In addition to its financial accounting responsibilities as outlined on page 12, the Board of Trustees takes decisions alongside its CEO about staff conduct ~~.~~ Decisions around the development of new projects, budgetary considerations such as the purchase of one off items of capital expenditure and the appointment of Board of Trustees also fall within its duties ~~.~~ Organisational policies are validated by the Board ~~.~~ Strategic steer is also provided by the Board of Trustees ~~.~~ The responsibility for overall daily operational decision making, including policy and procedural adherence and wider strategic involvement is devolved to the CEO. The number of Trustees was seven during the year ~~.~~ Target Housing considers itself very fortunate to have such a dedicated, skilled and motivated Board of Trustees. ## Public benefit The trustees have complied with the duty in s.4 of the Charities Act 2006 to have due regard to guidance published by the Charity Commission. 4 ## Target Housing Limited (Limited by Guarantee) ## Board Report ## For the year ended 31 March 2024 (continued) ## Structure, governance and management (Continued) ## Risk management The major risks to which Target is subject are recorded in a Risk Register, which also records the systems and controls established to mitigate against those risks ~~.~~ The Register is reviewed regularly by senior management and Trustees ~~.~~ The principal risks are related to the health and safety of both service users and employees, given the challenging character of service users as a group ~~.~~ Appropriate safeguards are in place to minimise these risks as far as possible. The second major area of risk is a loss of income arising from the failure to retain contracts when retendering, to win new contracts when tendering and from changes to social services funding for service users in relation to accommodation provision. Again, processes are in place to anticipate and respond as necessary to such events ~~.~~ ## Pension Liabilities Target’s pension scheme arrangements are detailed in Note 19 to the financial statements. Its share of the deficit is recorded as a long ~~-~~ term liability in the Balance Sheet ~~.~~ This is a very long ~~-~~ term liability only payable over a period of many years. The annual contributions payable to the scheme in relation to both current service and the deficit are allowed for in each year’s financial projections. These demonstrate that the charity is able to fund the ongoing contribution commitments as they arise. The trustees also record that, after allowing for the long ~~-~~ term liability, there is still an adequate level of reserves to facilitate ongoing operations ~~.~~ ## Going Concern After due consideration of all relevant factors, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future ~~.~~ Accordingly, they continue to adopt the going concern basis in preparing the financial statements. In forming this view, The Trustees have taken into account recent and projected financial performance, the level of reserves and the amount of cash balances held ~~.~~ These provide sufficient assurance that the charity is a going concern ~~.~~ 5 Target Housing Limited (Limited by Guarantee) Board Report For the year ended 31 March 2024 (continued) Objectives and activities- General statement The Objects of the Charity are {in summary) lo relieve specified groups of people in need through the provision of accommodation, advice. support and training, with a view lo helping people achieve independent living. In relation to these objectives Ihe Charity has undertaken Ihe following activilies during ihe year We have continued lo successfully deliver excellent services to all our vulnerable clients despite a continued challenging economic climate. Successfully tendered with Doncaster local authority to Homes England and Department for Levelling Up, Housing and Communities. The successful bid was to purchase 18 properties for entrenched Rough Sleepers. induding those presenting with complex needs. Successfully tendered with Sheffield local authority to Homes England and Department for Levelling Up, Housing and Communities. The successful bid was to purchase 10 properties for entrenched Rough Sleepers. including those presenting with complex needs. Successfully tendered to Barnsley local authority to purchase 4 properties to be used for those fleeing domestic abuse. Successfully tendered to Rolherham local authority for Elliot Court. This is a 30 bed hostel for those who are homeless. The contract is lor 5 years. Successfully tendered and retained our Sheffield complex needs project for a further 5 years. Continued to provide a Rapid Rehousing service in Doncaster- including providing emergency beds during severe weather periods in Winter. Continued to develop our working relationships with both Mears and Serco, to the benefit of all three organisalions. Continued to expand our AST schemes for homeless families in Rolherham., Doncasler and Barnsley. Continued lo work positively with IDAS in Sheffield and Doncasler and Rotherham Rise in Rotherham, lo provide properties and accommodation-based supporl to individuals under their respeclive Domeslic Abuse contracls with Ihe Local Aulhorilies Retained all existing accreditations. Continued to be fully accredited as a Joseph Rowntree Living Wage Employer. Staffing numbers continue to rise across all areas as Target continues to expand. 184 staff as at 315t March 2024. In all of the above, the Charity has had regard lo the guidance issued by the Charity Commission on public benefit. ## – - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Target Housing Limited (Limited by Guarantee) Board Report For the year ended 31 March 2024 (continued) Performance - General slatement (continued) AASC- As lum Accommodation and Su rl Pro'ect. Housed and supported a total of 2101 individuals during the year. in both shared accommodation and family properties During ihis year we have had 875 people move out and 835 people move inlo properties The top 5 countries were people came from were again Iraq. Iran, Eritrea. Albania and Pakistan Maintenance Team Processed 11021 repair orders Completed 10409 maintenance jobs 1538 maintenance jobs were completed by either landlords or contractors Value for Money The Regulator of Social Housing requires the Association, in common with all private registered providers of social housing, to publish evidence within its annual report to facilitate an understanding of its performance against certain key metrics set out by the Regulator, as follows= 1. Reinvestment: 21.90A {2023: 21.10A) Measures investment in properties (existing stock as well as new supply) as a percentage of the value of tolal properties held. 2a. New supply delivered [social housing]: 12.6•A (2023: 17.0%) 2b. New supply delivered [non-social housing]: NIL•A {2023: NIL•A) Sets out the number of new social housing and non-social housing units that have been acquired or developed in the year as a proporlion of tolal social housing unils and non-social housing units owned at year end. 3. Gearing: 76.O•A {2023: 73.70A) Measures how much of the adjusted assets are made up of debt and the degree of dependence on debl finance. It is often a key indicator of a registered provider's appetite for growth. The Association's gearing percentage arises from its significant cash balances- these are actively managed lo optimise returns consistent with its twin priorities of capital preservation and ensuring sufficient liquidity is available to meet operational requirements. 4. EBITDA MRI interesl cover: 268.3 /0 {2023: 541.4"A) Earnings before interest, tax, depreciation, amortisation, major repairs included (EBITDA MRI) interest cover. A key indicator of liquidity and investment capacity. Measures the level of surplus that a registered provider generates compared to interest payable, but in a way that avoids distortions stemming from the depreciation charge. 5. Headline social housing cost per unit: £1.206 (2023: £913) Self-explanatory unit cost metric- the Association has calculated this metric based on 986 {2023= 940) social housing units owned andlor managed at year end. 6a. Operating margin (social housing only): 0.5% (20Z3: 0.7%) 6b. Operating margin (overall): 0.50A (2023: 0.vA) Measures the profitability of operaling assels before exceptional items are taken into account. The Association specialises in providing supported housing, which means its margin will lend to be lower than average. 7. Relurn on capital employed: 0.6% (2023: 0.99A) This metric compares the operating surplus lo total assets less current liabilities, a measure commonly employed in the commercial sector lo assess Ihe efficient investment of capilal resources. Target Housing Limited (Limited by Guarantee) ## Board Report ## For the year ended 31 March 2024 (continued) ## Financial review The Chair’s Introduction and the General Statements on Objectives and Activities and Performance set the context for this review of the results for the financial year 2023 ~~-2~~ 4. Income and charitable expenditure have again increased significantly as we have continued to grow our core activities. Income has increased by 10 ~~.~~ 5% and expenditure by 10.8%. For 31 March 2024 interest payable and similar charges totalled £261,399 representing a 115% increase compared to 31 March 2023. As in recent years, the income increase results principally from continuing growth in the levels of activity on most contracts ~~.~~ Expenditure increases mirror increased activity levels ~~.~~ These are principally staffing (the average number increased by 5 in the year) and property (with 15 acquisitions in the year in addition to the 19 in the previous year, as well as increased numbers of rental properties) related costs. In addition, these continuing property acquisitions and utilising mortgage finance, impact on both our interest payments and depreciation charges. Whilst Target is a not ~~-f~~ or ~~-p~~ rofit entity, generating surpluses enables us to sustain and enhance the services provided to our service users, by investing in properties and people, and to cover our substantial loan repayment commitments ~~.~~ The year ~~-~~ end financial position as shown in the Balance Sheet remains healthy, and whilst free reserves are below our target at the year end, the shortfall is due to timing which is remedied post year end ~~.~~ One important factor behind the reduction is our continuing acquisition of properties. Most of the property acquisitions are financed by mortgage borrowings but we do have to utilise part of our cash resources as well. At the 31 March 2024 our cash at bank had increased by £316,985 to £1,075,301 compared to £758,316 as at 31 March 2023 ~~.~~ Our mortgage borrowings have increased significantly as we continued the major programme of property acquisitions utilising mortgage finance facilities with Charity Bank and with SASC, the specialist provider of funding to the not ~~-f~~ or ~~-p~~ rofit sector ~~.~~ This has enabled us to maintain our property acquisition programme in certain geographical areas and respond to increasing demand for our services to the most vulnerable in our society ~~.~~ The year under review as not been without its challenges, the cost of living crisis and high inflation have contributed to a negative financial outturn for the year to 31 March 2024 ~~.~~ Continued challenges including the on ~~-~~ going requirement to re ~~-~~ tender for the contract services we provide require our management team to explore and pursue the generation of income from other diversified sources that complement our existing services to our vulnerable client groups. 9 - - - - - - - - - - - - - - - - - ………………………………….. Target Housing Limited (Limited by Guarantee) Statement of Board's responsibilities The Board is responsible for preparing the report and financial statements in accordance with applicable law and regulations. The Co-operative and Communty Beneftt Societies Act 2014 and registered social housing legislation 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 association and of the income and expenditure of the association for that period. In preparing these financial statements, the Board is required to= select suitable accounting policies and then apply them consistently- make judgements and estimales that are reasonable and prudent" state whether applicable accounting standards have been followed. subject to any material departures disclosed and explained in the financial stalements. and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the association will continue in business. The Board is responsible for keeping proper accounting records which disclose with reasonable accuracy al any time the financial position of the associalion and to enable it lo ensure that the financial statements comply with the Companies Act 2006, Co-operative and Community Benefit Societies Act 2014, the Housing and Regeneration Acl 2008 and the Accounting Direction for private registered providers of social housing in England 2019. It has general responsibility for taking reasonable steps to safeguard the assets of the club and lo prevent and delect fraud and other irregularities. 12 association”) ## • - - - - - - - - - - - - - - auditor’s …………………………….. `16/09/2024` ## Target Housing Limited (Limited by Guarantee) ## Accounting policies ## For the year ended 31 March 2024 The Registered Provider is incorporated under the Companies Act 2006 (registered number 2787689) and the Charities Act 2011 (registered number 1017481) and is a Registered Social Housing Provider (Home and Communities Agency number 4679) ~~.~~ The association constitutes a public benefit entity as defined by FRS102 ~~.~~ ## Basis of accounting The financial statements have been prepared in accordance with applicable United Kingdom financial reporting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS102), the Statement of Recommended Practice for Social Housing Providers 2018 (SORP) and with the Accounting Direction for private registered providers of social housing in England 2019 ~~.~~ The financial statements are also prepared under the requirements of the Housing and Regeneration Act 2008 and the Companies Act 2006 ~~.~~ The financial statements have been prepared on a going concern basis under the historical cost convention ~~.~~ The significant accounting policies applied in the preparation of these financial statements are set out below ~~.~~ These policies have been consistently applied to all years presented unless otherwise stated ~~.~~ The company participates in the Social Housing Pension Scheme (SHPS) ~~.~~ This is a defined benefit multiemployer scheme ~~.~~ Historically insufficient information was produced by the scheme administrator to enable defined benefit accounting to be applied ~~.~~ Accordingly, the company accounted for the SHPS as a defined contribution scheme and recognised a liability for the present value of the company’s deficit funding agreement ~~.~~ However, in the prior year sufficient information was produced to enable the move to defined benefit accounting in accordance with FRS102 ~~.~~ ## Going concern After due consideration of all relevant factors, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future ~~.~~ Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts. ## Incoming resources All incoming resources are included in the Income and Expenditure Account when the association is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income: Rental turnover represents rental and service charges income receivable in the year. Voluntary income is received by way of grants, donations and gifts and is included in full in the Income and Expenditure Account when receivable ~~.~~ Grants, where entitlement is not conditional on the delivery of a specific performance by the association, are recognised when the association becomes unconditionally entitled to the grant. Investment income is included when receivable. Incoming resources from charitable activity are accounted for when earned. Incoming resources from grants, where related to performance and specific deliverables, are accounted for as the association earns the right to consideration by its performance. 17 ## Target Housing Limited (Limited by Guarantee) ## Accounting policies (continued) ## For the year ended 31 March 2024 ## Resources expended Expenditure is recognised on an accrual basis whena liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is included as part of the expenditure to which it relates ~~.~~ ## Operating leases Rentals payable under operating leases, where substantially all the risks and rewards of ownership remains with the lessor, are charged to the Income and Expenditure Account on a straight line basis over the period of the lease. ## Tangible fixed assets Tangible fixed assets (including social housing properties) are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended such as the cost of acquiring land and buildings, developments costs, interest charges on loans during the development period and expenditure on improvements. Expenditure on improvements will only be capitalised when it results in incremental future benefits such as increasing rental income, reducing maintenance costs or resulting in a significant extension of the useful economic life of the property ~~.~~ Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: Housing properties 2% straight line Motor vans 25% straight line Computer equipment 25% straight line Office equipment 25% straight line ## Pension costs The association is part of a mult ~~i-~~ employer defined benefit plan for the benefit of its employees ~~.~~ A liability for the association’s obligations under the plan is recognised net of plan assets. The net change in the net defined benefit liability is recognised as the cost of the defined benefit plan during the period ~~.~~ Pension plan assets are measured at fair value and the defined benefit obligation is measured on an actuarial basis using the projected unit method ~~.~~ ## Restricted reserves Restricted reserves are those reserves which are only expendable in accordance with the wishes of the funder or regulatory body ~~.~~ Restricted reserves include funds raised in response to a specific appeal. Expenditure cannot be directly set against restricted reserves but is taken through the income and expenditure account ~~.~~ A transfer from restricted reserves is then made as appropriate ~~.~~ ## Taxation No taxation is payable by the Registered Provider, since it has charitable status its charitable activities are exempt from tax ~~.~~ 18 Target Housing Limited (Limited by Guarantee) Accounting policies (continued) For the year ended 31 March 2024 Loans and borrowings Loans and borrowings are initially recognised at the Iransaction price including transaction costs. Subsequently, they are measured at amortised cosl using the effective interest method, less impairment. If an arrangement constitutes a financing transaction it is measured at present value. The measurement of two of the loans is the higher of the amount transferred from the lender and the amount linked to the market value of the associated properties. The loan is held at transaction value bul could be revalued to the fair value if or when the underlying properties are revalued. Provisions Provisions are recognised when the association has an obligalion al the balance sheet dale as a result of a past event, it is probable that an ouff low of economic benefits will be required in settlemenl and the amount can be reliably estimated. Defined benefit pension obligalion The liability recognised in the balance sheel in respecl of defined benefit pension plans is the present value of the defined benefit obligation at the reporting date minus the fair value of plan assels. Actuarial gains and losses are charged or credited to other comprehensive income in the period in which they arise. Further information can be found in Note 19. Basic financial instruments Financial instruments are classified and accounted for. according io the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in Ihe assets of the associalion after deducting all of its liabilities. Complex financial instruments Where a financial instrument does not meet the criteria of a basic financial instrumenl it is classified as a complex financial instrument in accordance with section 12 of FRS102. Where such a liability is recognised it is initially recognised al ils fair value, before being subsequently adjusled at each period end with the change in fair value included in the income and expenditure account. 19 Target Housing Limited (Limited by Guarantee) Income and Expenditure Account For the year ended 31 March 2024 Note 2024 2023 Turnover 15.383,742 (15,312,723) 13,920,051 (13,822.878) Less.. Operating costs Operaling surplus Interest receivable and similar income 71,019 97.173 107 453 Interest payable and similar charges (261.399) (121.2701 Deficit on ordinary activities for the year 190,273 23,644 There is no difference between the reported deficit for the period and historical cost surpluses or deficils. The results relate wholly to continuing activities. Approved and authorised for issue by the Board of Directors and Trustees on 131h September 2024 and signed on ils behalf by: Rachel Healh Karen Rick 20 Target Housing Limited (Limited by Guarantee) Statement of Comprehensive Income For the year ended 31 March 2024 Note 2024 2023 Deficit for the year 190,273 23,644 Actuarial {losses) in respect of defined benefit pension scheme 19 {67.000) (42,000) (257,273) (65,644) Total comprehensive {expenditure) for the year 257,273 65,644 21 Target Housing Limited (Limited by Guarantee) Balance sheet- 31 March 2024 Company Number- 2787689 Note 2024 2023 Fixed assets Properties at depreciated cost Other fixed assets Total fixed assets 11.932,756 120,738 12.053 494 10,011,337 162,730 10,174,067 Curreni assets Deblors Gash at bank and in hand 10 1.155,159 1.075,301 2,230,460 1,099,306 758,316 1,857.622 Creditors- amounts falling due within one year Net current assels 1,587,950 642,510 1,089,293 768,329 Total assets less current liabilities 12,696,004 (9,932,741) 10,942,396 (7.921,8601 Creditors- amounts falling due after one year 12 Defined benefit liability 19 (267.000) {267,000) Total net asseis 2.496.263 2,753,536 Capiial and reserves Revenue reserve Restricted reserves 16 16 2.454,596 41,667 2,496,263 2,753.536 2,753.536 The financial statements were approved and authorised for issue by the Board of Directors and Trustees on 13th September 2024 and were signed on its behalf by: Rachel Healh Karen Rick 22 Target Housing Limited (Limited by Guarantee) Cash Flow Statement For the year ended 31 March 2024 Nole 2024 2023 Cash flow from operating activities 17 1,084,519 565,126 Cash flow from investing activities Payments lo acquire tangible fixed assels Receipts from sales of tangible fixed assets Interest received (2.648,027) 131.690 107 (2.516,230) {2,187,7741 900 453 Nel cash flow from investing activilies {2.186.4211 Cash flow from financing aclivilies Interest paid Repayment of long term loans Cash inflow from new borrowings Net cash flow from financing activities (261,399) (60,625) 2,070,720 1,748,696 {121,270) (78,290) 1,012.285 812.725 Net increasel(decrease) in cash and cash equivalents 316.985 {808,570) Cash and cash equivalents at Ihe beginning of the reporting period 758,316 1,566,886 Cash and cash equivalenis at Ihe end of Ihe reporting period 1,075,301 758.316 Cash and cash equivalenls consists of: Cash at bank and in hand 1,075,301 758.316 23 Target Housing Limited (Limited by Guarantee) Notes to the financial statements For the year ended 31 March 2024 Social housing income and expenditure 2024 2023 Gross rents receivable Supporting People income Revenue grants receivable AASC income Other income 8,656,806 1,242,245 215,308 4,806,400 462,983 15,383,742 (15.312.723) 71,019 7,719,287 1,240,708 130,076 4,406,807 423,173 13,920,051 (13,822.878) 97,173 Social housing operating costs Operating surplus Operating surplus Operating surplus is stated after charging: 2024 2023 Auditors remuneration as auditors for non audit services Depreciation 8,400 5,250 649,648 4,290 6,710 558,986 Board and key management personnel remuneration The tolal remuneralion for key management personnel comprising the twelve members of the senior management team amounled to £590,22312023 ten members £432.699). The key management personnel of the charity comprise the trustees and the Senior Management Team. which al the year- end comprises the staff members listed below. Chief Executive Off icer Depuiy Chief Executive Officer Finance Director Head of Housing & Asylum Support Business Development Director Head of Operations Head of Development Head of Maintenance & Compliance Head of Central Services Head of Property Acquisition Head of Care Head of Human Resources No remuneration or out of pocket expenses were paid to the Trustees during the period. 24 Target Housing Limited (Limited by Guarantee) Notes to the financial statements (continued) For the year ended 31 March 2024 Employee information The average number of persons employed during the year expressed in full time equivalents was: 2024 No. 2023 No. Administration staff Housing development staff 28 155 30 148 183 178 Total employee emoluments: 2024 2023 Gross salaries Employers national insurance Pension contributions 4.616,398 403.662 199.898 4,095,636 366,363 178,423 5.219,958 4,640.422 The number of employees whose employee benefits (excluding employers pension costs) exceeded £60,000 was: 2024 No. 2023 No. In the band £90.001 £100.000 In the band £100,001 £110,000 In the band £110.001 £120.000 Interesi receivable 2024 2023 Bank deposits 107 453 Interesl payable 2024 2023 Mortgage interest 261,399 121,270 25 Target Housing Limited (Limited by Guarantee) Notes to the financial statements (continued) For the year ended 31 March 2024 Tangible fixed assets - housing properties (for letting) Properties Cost As at 1 April 2023 Additions Disposals 11,772,263 2,609,372 (126,390) As at 31 March 2024 14,255,245 Deprecialion As at 1 April 2023 Charge for the year Eliminated on Disposals 1,760.926 578,951 117,388) As at 31 March 2024 2,322,489 Nel book value As at 31 March 2024 11,932,756 As at 31 March 2023 10.011,337 Social housing properties with a net book value of £11,126,082 (2023 £9,406,140) have been pledged as security for liabilities of the company. 26 Target Housing Limited (Limited by Guarantee) Notes to the financial statements (continued) For the year ended 31 March 2024 Cash and cash equivalents 2024 2023 Cash al bank and in hand 1,075,301 758,316 10. Debtors All receivable within one year- 2024 2023 Rents receivable Other Irade deblors Prepayments and accrued income 281.140 686.012 188,007 290,539 622,160 186,607 1.155,159 1,099,306 Included within rents receivable is a provision of £230.287 (2023= £246,490) in respect of bad and doubttul debts in relation to sociai housing rent arrears. Creditors 2024 2023 Amounts falling due within one year- Trade creditors Accruals and deferred income Bank loans Other loans 566.842 811.846 196,627 12,635 436,651 442,594 196,627 13,421 1,587,950 1,089,293 12. Creditors 2024 2023 Amounts falling due after one year.. Bank loans Other loans 3,376,452 6 556 289 2,355,587 5,566,273 7,921.860 9,932,741 Included within creditors are the following amounts due after more than 5 years- 2024 2023 After more than five years 8,990,739 6,981,269 Security The bank loans and other loans are secured by charges over the freehold land and buildings, book debt and by assignment of deposit held at Charity Bank. 28 Target Housing Limited (Limited by Guarantee) Notes to the financial statements (continued) For the year ended 31 March 2024 13. Operating Lease Commitments Total future minimum lease payments under non-cancellable operating leases are as follows: 2024 2023 Operating leases which expire- Within one year Within two to five years After five years 229,135 273,879 280,181 348,216 14,000 642,397 503,014 14. Accommodation in management 2024 No. 2023 No. Social housing properties owned General needs housing Social housing properties managed General needs housing Non-social housing properties managed Asylum housing Total owned and managed 120 106 498 471 368 363 986 940 15. Called up share capital Members of the Registered Provider guarantee to contribute a maximum of £1 should there be a call on their guarantee. 29 Target Housing Limited (Limited by Guarantee) Notes to the financial statements (continued) For the year ended 31 March 2024 16. Reserves note 2024 Blfwd Income Expenditure Pension Clfvid Restricted funds RSAP 1 RSAP 2 Clothworkers Efficiency North RMBC Adult care Small individual grants SYHA Activities SHAP Doncaster Barnsley DA Unrestricied funds 4.400 2,937 1,000 1,000 91,667 235 14,330 1.172 (4,400) (2,937) (1 ,000) (1 .000) (50,0001 (235) (14,3301 (1.172) (484) 15.498.564 41,667 2,753,536 15.266,624 67,000 2,454,596 2,496,263 2,753.536 15.383,849 (15,574,122) (67,000) 2023 Blfwd Income Expenditure Pension Clfwd Restricted funds SYF RSAP 1 Clothworkers Efficiency North RMBC Adult care Small individual grants Unrestricted funds 1.303 367 1,000 1.000 50,000 5,974 13.860,860 (1 .3031 (367) (1,000) (1 .000) (50,0001 (5,974) 13,884,504 2,819,180 42,000 2,753,536 2,819,180 13,920,504 (13,944,148} {42,000) 2,753,536 SYF A capital grant funding to provide sprinkler system at HMO property. RSAP A capital grant funding to purchase property as part of Ministry of Housing, Communities & Local Govemment Rough Sleeping Accommodation Programme. Clothworkers A capital grant funding to purchase and refurbish property to provide accommodation for vulnerable people, match funded with Efficiency Norlh. Efficiency North A capital grant funding to purchase and refurbish properly to provide accommodation for vulnerable people. match funded with Clolhworkers. 30 Target Housing Limited (Limited by Guarantee) Notes to the financial statements (continued) For the year ended 31 March 2024 16. Reserves note (continued) RMBC Adult care Funding for 2 full time equivalent support workers to ensure provision of accommodation and related support for singles exiling custody and those at risk of re-offending. SYHA Positive Activities Fund grants funding to deliver positive activities le.g. access to education, training and volunleering), to adults in Sheffield who are experiencing homelessness, subslance misuse, mental health issues, contact with the criminal justice system or domeslic abuse. SHAP Doncaster A capilal granl funding to purchase properties as parl of Ministry of Housing, Communities & Local Governmenl Single Homeless Accommodation Programme. Barnsley DA A capilal grant funding to purchase property to accommodate people accessing domestic abuse services. 17. Reconciliation of operating surplus to cash flows from operating activities 2024 2023 Total comprehensive (expenditure) for the year Interest payable Interest receivable Depreciation {Profit} on disposal (Increase) in debtors Increase in creditors (257.273) 261.399 (107) 649.698 (12,788) (55,853) 499.443 (65,644) 121.270 (453) 558.986 (775) {249,195) 200.937 Nei cash flow from operaiing aciivities 1,084.519 565.126 18. Analysis of changes in net debt 2023 Cash flows Non-cash changes 2024 Short term borrowings Long term borrowings (210,049} (7.921,860) 60,625 (2.070.719> {59.8381 59,838 {209,2621 (9,932,741) Tolal borrowings (8.131.909) (2.010.094) {10,142,003) Cash and cash equivalents 758.316 316.985 1,075.301 Toial net debl (7.373.593) {1,693.109) {9.066,702) 31 Target Housing Limited (Limited by Guarantee) Notes to the financial statements (continued) For the year ended 31 March 2024 19. Defined benef it pension scheme The Registered Provider participates in the Social Housing Pension Scheme, a multi-employer scheme which provides benefits to some 500 non-associated employers. The scheme is a defined benefit scheme in the UK. The pension plan is funded by the payment of contributions and assets of the plan are held in a separately administered fund. The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council. set out the framework for funding defined benefit occupational pension schemes in the UK. The scheme is classified as a'last-man standing arrangement.. Therefore the company is potentially liable for other participaling employers. obligations if those employers are unable to meel their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required lo meet their share of the scheme deficit on an annuity purchase basis on withdrawal from Ihe scheme. The present value of the defined benefit obligation, fair value of assets and the def ined benefit liability as a result is as follows: 2024 £OOOs 2023 £OOOs Fair value of scheme assets Present value of defined benefit obligation Defined benefit pension scheme deficit 1,151 1,418 267 1,215 1,482 267 Defined benefii obligaiion Changes in the defined benefit obligation are as follows= 2024 £OOOs 2023 £OOOs Obligation at the start of the year SeNice cost Interest expense Actuarial Igainsl Benefits paid Member contributions Other 1,482 {5) 70 (211 (127) 15 2,245 61 {7391 {1311 35 Obligation at the end of the year 1,418 1,482 32 Target Housing Limited (Limited by Guarantee) Notes to the financial statements (continued) For the year ended 31 March 2024 Fair value of scheme asseis Changes in the fair value of scheme assets are as follows: 2024 £OOOs 2023 £OOOs Fair value at start of the year Interest income Return on plan assets, excluding amounts included in net interest Employer contributions Member contributions Deficit contributions 1,215 59 {88) 77 15 (127) 1,943 54 {781) 95 35 {1311 Fair value at the end of the year 1,151 1,215 Reconciliation of deficil funding to defined benefit posilion 2024 £OOOs 2023 £OOOs Deficit funding liability at 1 April 2023 Actuarial movements during the year Current service cost during the year Deficit contributions paid during the year Defined benefil liability at 31 March 2024 267 67 10 177) 267 302 42 18 (95) 267 33 Target Housing Limited (Limited by Guarantee) Notes to the financial statements (continued) For the year ended 31 March 2024 Principal actuarial assumptions The principal actuarial assumptions used are as follows: 2024 °A per annum 2023 % per annum Discount rate Inflation (RPI) Inflation (CPI) Salary Growth 4.89 3.17 2.77 3.77 75% of Maximum allowance 4.88 3.20 2.74 3.74 751oof Maximum allowance Allowance for commutation of pension for cash at retirement The mortality assumptions adopted at 31 March 2024 imply the following life expectancies Life expectancy at age 65 (Years) Male retiring in 2024 Female retiring in 2024 Male retiring in 2044 Female retiring in 2044 20.5 23.0 21.8 24.4 20. Capital commitments As at 31 March 2024 the charitable company had contracted lo purchase fixed assets amounting to £1,414,000 (2023- £1,114.000). 21. Controlling party The Board considers thal there is no overall controlling party. 34