2023-03-31-accounts - Coastline Housing Limited

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

Coastline Housing Limited Coastline Housing Limited Financial Statements Consolidated Financial Statements For the year ended 31 March 2007 For the year ended 31 March 2023

Registered Number 3284666 Registered Number 03284666

Registered Office: Coastline House 4 Barncoose Gateway Park Pool, Redruth Cornwall TR15 3RQ

Contents
Group Information	3
Chair’s and Chief Executive’s Report	6
Strategic Report and Performance Highlights	8
Statement of Directors Responsibilities	28
Section 172 Statement	29
Independent Auditor’s Report	33
Group and Company Statement of Comprehensive Income	37
Group and Company Statement of Financial Position	38
Group Statement of Cash Flows	39
Group and Company Statement of Changes in Equity	41
Notes to the Financial Statements	42

Group Information

BOARD MEMBERS AND SENIOR STAFF

----- Start of picture text -----
Committee membership during 2022/23
The Board Role From To Group CDB CCL CHM CSL ARAC PIC PC CEC MeetinMax Nog Attendance No Attended(inc. Committees% )
M Duddridge Chair DesiChair gnate 01 A01 Julpyril 2021 2021 01 Jul17 Mayy 2021 2023 Y Y Y Y Y Y 16 16 100%
S Harrison Deputy Chair 27 September 2018 17 May 2023 Y Y Y Y Y Y Y 16 15 93%
Interim Chair 18 May 2023
A Young Chief Executive 09 October 2014 Y Y Y Y Y Y 16 16 100%
K Kemp Non-Executive 01 January 2022 Y Y Y 12 12 100%
C Pears Non-Executive 01 March 2021 Y Y Y Y 13 12 92%
K Harris Non-Executive 01 September 2020 Y Y Y Y 14 13 93%
A Moore Non-Executive 01 September 2020 Y Y Y 12 12 100%
B Treleaven Non-Executive 01 January 2022 Y Y Y Y 13 11 85%
P Doddrell Non-Executive 01 April 2022 Y Y Y Y 14 14 100%
D Barlow Non-Executive 01 January 2022 Y Y Y Y 17 17 100%
M Tucker Independent ARAC member 01 January 2022 Y 5 4 80%
E Chapman Independent CEC member 01 February 2021 Y 4 3 75%
C Jones Independent CEC member 01 September 2022 Y 2 2 100%
M Gaunt Independent CEC member 01 March 2022 Y 4 4 100%
S Curtis Independent CEC member 01 September 2021 Y 4 3 75%
J De-Ville Independent CEC member 01 February 2021 31 August 2022 Y 1 1 100%
L Beard Deputy CEO 01 February 2021 22 September 2022 Y 2 2 100%
C Weston Director of Development & 01 February 2021 22 September 2022 Y 2 2 100%
Commercial Services 01 August 2016 28 September 2022 Y 1 1 100%
----- End of picture text -----

From the 21 July 2022 all non-executive directors of Coastline Housing Limited have been appointed to Coastline Services Limited Board reflecting the most recent governance action plan and in preparation for moving to a common Board. This change reflects the importance of the delivery of repairs and maintenance services within the Group.

Membership Key

CDB Coastline Design and Build Limited CCL Coastline Care Limited

CHM Coastline Homes Limited CSL Coastline Services Limited ARAC Audit, Risk and Assurance Committee PIC Property and Investment Committee PC People Committee CEC Customer Experience Committee

CORPORATE INFORMATION

----- Start of picture text -----
Advisors
Trowers and Hamlins, The Senate, Southernhay Gardens, Exeter EX1 1UG
Principal Solicitors
Stephens and Scown, Osprey House, Malpas Road, Truro, Cornwall TR1 1UT
Santander, 2 Triton Square, Regent’s Place, London NW1 3AN
M&G Investments, Laurence Pountney Hill, London, EC4R 0HH
Scottish Widows, Level 5C, 69 Morrison Street, Edinburgh, EH3 8YF
Affordable Housing Finance, 3rd Floor, 17 St. Swithin’s Lane, London EC4N 8AL
Funders
NatWest plc, 9th Floor, 250 Bishopsgate, London EC2M 4RB
Saltaire Finance plc, 1 Bartholomew Lane, London EC2N 2AX
Homes England, 50 Victoria Street, Westminster, London SW1H 0TL
Lloyds Bank plc, 10 Gresham Street, London, EC2V 7AE
Bankers NatWest plc, 4 Commercial Square Camborne TR14 8EB
External Auditors PKF Francis Clark, Lowin House, Tregolls Road, Truro, TR1 2NA
Internal Auditors Bishop Fleming, Chy Nyverow, Newham Road, Truro TR1 2DP
----- End of picture text -----

GROUP STRUCTURE

Coastline Housing Limited (‘CHL’ or ‘the Company’) was incorporated in November 1996 and is an independent registered charity and social business, run on a non-distribution basis. This means that all profits generated are retained for furtherance of Coastline’s charitable objectives. CHL is a public benefit entity.

It has four wholly-owned subsidiaries and together these companies form Coastline Housing Group (‘the Group’):

Coastline Services Limited (‘CSL’), a building maintenance and grounds contractor;
Coastline Design and Build Limited (‘CDB’), a design and build contractor;
Coastline Homes Limited (‘CHM’), a design, construction and sale of residential housing contractor; and
Coastline Care Limited (‘CCL’), which has remained Dormant throughout 2022/23

CHL is registered with the Charity Commission as a charitable company and with the Regulator of Social Housing (‘the RSH’) as a provider of social housing; both of these provide the primary regulatory framework for Coastline with the Regulator of Social Housing as principal regulator.

CHL is also registered with the Care Quality Commission (CQC) for the provision of extra care provided at Miners Court.

CHL is a company Limited by Guarantee registered at Companies House. CSL, CDB, CCL and CHM are all companies limited by shares and are also registered at Companies House.

The Group is governed by a paid Board of Non-Executive Directors and the Chief Executive. The Directors of the Company who have served during the year and up to the date of the signing of these financial statements are listed on page 3.

Chair’s and Chief Executive’s Report

The last year for Coastline has been one where we have seen significant changes in our operating environment, with those changes posing a variety of challenges. It is pleasing to be able to set out in this report that Coastline has responded effectively in this period of change, and has continued to make positive progress towards its strategic goals.

The challenges we have seen over the last year have affected not just us as a housing charity, but also our partners and stakeholders, and most importantly our customers and the communities they live in.

One overarching theme, that has impacted not just us at Coastline, but the wider UK economy, has been the unsettled economic situation. Coastline, like other businesses, has had to find ways to work through a difficult labour market with high wage inflation, high levels of inflation generally, and perhaps of most long term significance, interest rates at their highest levels for a number of years.

The social housing sector has seen increased scrutiny, not least following the coroner’s verdict into the death of Awaab Ishak. This shone a light on the importance of both good quality housing and good quality, empathetic, customer service. The lessons are profound not just for social housing providers, but for the country as a whole, and show the need for a national, long term, strategic approach to housing that embraces its importance to the country’s health, wellbeing and economy.

Coastline’s approach to these challenges has been, as always, to hold true to its values. Providing the best service possible to our customers, keeping their homes safe, secure, and in good repair, and investing in their communities to make them a good place to live.

A particular sad point for us as the Coastline family came in May, just after the end of the financial year, when our Group Chair, Mark Duddridge, passed away suddenly and unexpectedly. Mark’s death affected many people at Coastline, and across Cornwall, but most importantly our thoughts are with his family.

We are confident Mark would be proud of the story that Coastline has to tell for the last financial year, both in terms of the financial results and in the progress made against our strategic objectives. Particular highlights include:

Retaining our top-strap ‘G1’ regulatory governance grading, even though wider economic pressures saw Coastline, along with more than half of the sector, end the year with a ‘V2’ financial viability rating.
Effectively addressing the risk from interest rate volatility through a new long term £50 million facility through the Affordable Homes Guarantee Fund, ending the year with 82% of our debt fixed.
Maintaining our sustainability fund and supporting our customers to access Discretionary Housing Payments (DHP) to clear rent arrears and sustain tenancies, with rent arrears levels that are amongst the lowest in the sector
Celebrating consistent growth, with Coastline being named by Inside Housing as one of the top 10 fastest growing housing associations in the UK for the sixth year in a row, something that no other organisation has achieved.
Continuing our focused investing in homes and communities, with 82% of our homes at an Energy Performance Certificate (EPC) rating of C or above, and the proportion of our communities meeting our standards for being safe and well maintained increasing from 69% to 89%.
Securing £1.2 million through the Social Housing Decarbonisation Fund, which will bring a further 151 of our homes up to at least EPC C.
Being named ‘Best Third Sector Business’ in the Cornwall Business Awards, recognising the role we play in helping to solve the housing crisis in Cornwall.

Overall, we are pleased to be able to report that the team at Coastline has continued to work effectively towards our mission statement of ‘Great Homes, Great Services, Great People’, and that Coastline

remains in a strong position to deliver against its strategic objectives, working towards the strategic aims set out in the ‘Great Futures’ Coastline Plan 2021-25.

We would like to thank our colleagues and Board for their continued ability to adapt to the challenges of the past year and their commitment to our customers and Coastline.

Steve Harrison Allister Young Interim Chair Chief Executive

Strategic Report and Performance Highlights

PERFORMANCE HIGHLIGHTS

Our homes

5,327 number of properties with a valuation of £220.1 million
86 homes managed for Legal and General Affordable Homes
205 completed in the year, of which 185 were affordable homes
Number of new shared ownership owners 71
Shared owners who converted to full ownership 5
223 homes started on site

Our financial strength

£38.5 million turnover
£6.7 million operating surplus
18% operating margin
£52.3 million available liquidity

Maintenance of our homes

£14.3 million repairing and improving homes (expenditure on works to existing properties)
• 25,425 repairs of which 2,569 (10%) were emergencies
83 kitchens fitted
101 new bathrooms

Levels of compliance

Gas 100% domestic, 100% communal
Electrical (5-year) 99.85% domestic, 98.48% communal & (10 year) 100% domestic and communal
• Fire 100% communal

Our customer satisfaction

UKCSI index score of 80
58 second average call wait time
75,671 number of customer contracts made
40,261 telephone calls answered

Our new customers

532 families moved into our homes in the year

Our customer-led services

135 people helped back into work or training
685 people helped by our homeless service

Regulator Rating – November 2022

Governance: G1
Viability: V2

WHO ARE WE?

Coastline Group is one of the leading providers of affordable housing in Cornwall, providing 5,327 homes for more than 11,098 people, employing over 330 staff. We are a financially stable not-for-profit housing association that reinvests all its surpluses into improving existing homes, communities and services, and developing new homes.

OUR PURPOSE AND PRINCIPAL ACTIVITY

To provide affordable housing for people on low incomes.

OUR VISION

To end the housing crisis in Cornwall. That is why Coastline exists. This vision is set across three strands:

Great Homes – to provide a range of housing options to meet people’s different needs, to invest in new affordable homes, to invest in places and communities, and to play a leading role in delivering Cornwall’s climate change action plan
Great Services – to listen to our customers and ‘do the right thing’, to earn and maintain trust, to provide helpful, joined up services that are easy for all of our customers, and to continue to learn and improve
Great People – to support the people that live in our homes and communities, to work collaboratively to maximise our resources, and to build on our positive culture and values, so that Coastline can be a great place to work and volunteer.

OUR VALUES

Customer focused - put our customers first
Trustworthy – be open, honest and accountable
Learning – strive to be the best
Caring – value each other

OUR HOMES

During the year, the number of homes we own and managed reached 5,327. The majority of our homes are let at rents lower than full market to people who cannot afford to rent on the open market. We also provide shared ownership properties, market rent and accommodation for those requiring additional support.

In the year, we developed 205 new homes, including 104 affordable rented homes for general needs, 71 for shared ownership, 20 open market and 10 new homes we manage for others.

We have 5,241 managed properties and 86 that we own but do not manage.

Property numbers

	2019 2020 2021 2022 2023
Property Stock	No. No. No. No. No.
Social housing rented Shared ownership Market rented Managed but not owned Leasehold properties Total Housing Stock Garages Total Property Stock	4,246 4,364 4,426 4,511 4,589 300 370 409 456 522 9 6 5 3 2 14 54 69 89 86 103 114 117 126 128
	4,672 4,908 5,026 5,185 5,327 685 685 660 704 710
	5,357 5,593 5,686 5,889 6,037

STRATEGY, OBJECTIVES AND PERFORMANCE

2022/23 was our second year of our Coastline Plan ‘Great Futures’ 2021-2025 and our first year of our Development Strategy, Environment Strategy and People & Culture Strategy. These, along with our Asset Management Strategy and Homes, Communities & Customer Experience Strategy set our strategic priorities and commitment to demanding targets for our business.

A high level summary of the Coastline Plan can be found below.

Our Financial Statements set out our performance in relation to this, with levels of service and investment performing well.

Our budgets and forecasts were regularly reviewed, and we continued to review and undertake additional stress testing of our long-term business plan, including reforecasting our 2022/23 budget. We stress test our business on negative scenarios to identify any impacts on covenants, security and liquidity throughout the long-term business plan.

We continue to maintain our position as a financially robust organisation with substantial liquidity, covenant headroom and unencumbered assets coupled with strong margins.

Coastline continues to develop its approach to partnership working as an important aspect of what is required to solve the Housing Crisis in Cornwall. New homes built as part of the partnership with Legal and General Affordable Homes totalled 10 for 2022/23 bringing the total number of homes delivered to 86.

COASTLINE PLAN 2021-2025

During 2022/23 Coastline set 63 targets for the year to help track progress against the 17 aims of the Corporate Plan. Our progress at year end was 68% of these targets were achieved, with only 4% of targets significantly off track.

	Great Homes	Great Services	Great People	Great Foundations	Total March 23
On track	20	8	10	5	43
Slightlyoff-track	9	4	1	3	17
Significantly off- track	2	1	0	0	3
Not completed/ failed	0	0	0	0	0
Total	31	13	11	8	63

Our key highlights for the year are:

Great Homes

What went well

94.8% customer satisfaction with the quality of the home
Planned programmes for key components have been updated on “My Coastline”, showing the planned review date for replacement; these will be updated in 2023 to a R-A-G format. Customer guidance has been enhanced in consultation with customer groups to ensure they are better informed on what to expect with planned works
Reviewing customer feedback, mould surveys, Smartline data, complaints trends and the outcomes of the Landlord Health and Safety (Disrepair) Audit in January 2022, Coastline has developed and implemented a more robust approach to identifying homes with potential disrepair. Including a “Let’s get serious about mould!” project which was launched in February and features a set of videos performed by a group of involved customers which all relate to damp, condensation and mould. The video series provides good accurate advice and guidance to customers and encourages them to report any issues as quickly as possible to Coastline.
A new asset investment and viability model is in place and working. It has been upgraded to include a built-in viability assessment tool for use on void properties to enable high cost (less viable) homes to be quickly identified.
Coastline have now ‘bought into’ GoCollaborate and continue to work with them on schemes through the planning process. This has been positive to date. Work continues on new schemes with Coastline alongside our involvement at monthly Board Meetings and considering further business development with GoCollaborate

What didn’t go as well

The number of homes completed were 43 lower than planned as result of delays in pre-construction areas and delays on site. The delays on site stem from material and labour shortages
Work continues to identify a suitable system / site to trial a modular approach. A range of options are being considered and contact has been made with appropriate consultants and frameworks to take this forward, most notably including Building Better which we are members of by virtue of Advantage South West. Whilst a potential site has been identified, and terms agreed to buy the site, the site will not be purchased until later in 2023.
Coastline’s UKCSI survey for customer satisfaction with their neighbourhood shows an improvement from 69.9% in 2021 to 74.5% in 2022. The current result for March 2023 is 78.2% but

is short of our target of 87.4%. The Community Standard Inspections continue, along with our maintenance investment programmes and the community events. This continued work will help to continuously improve satisfaction.

Great Services

What went well

Our customer accessed repair “right first time” scored 89.5% against a target of 85%.
Implemented a new telephony/customer contact software that has improved reliability and generated cost savings of £60,000.
Completed the customer focused review of our responsive repairs service, to improve customer service and capacity, with findings implemented during 2022/23.
Our Trust Charter fully embedded by ensuring it is well understood and referred to across Coastline. We have promoted internally and externally, through case studies, scrutiny review findings, staff briefings, Customer Stories on the website, team meetings, and our values as part of discussions at performance reviews.

What didn’t go as well

Customer satisfaction that views are listened to and acted was targeted to be 75.2%. At March 2023, our UKCSI survey showed a score of 70.4%. Work is continuing to improve satisfaction against this measure across all the teams in Coastline, including improvements to the repairs process and Community Standard Inspections.
Our customer satisfaction with how complaints are handled achieved 50% against a target of 78%, which Coastline is committed to improving.

Great People

What went well

New benefits and reward packages for our staff with a launch of our own CoastLife platform and “refer a friend scheme” to promote vacancies within the Group
New colleague appraisal scheme launched in October 2022
All colleagues have completed our Insight Programme to help lead Coastline with different styles within our shared set of Coastline values

What didn’t go as well

Due to the current cost of living crisis, we have not been able to best utilise our resources to assist as many customers as possible, including development, enhancement and mainstreaming of the 'Welfare Reform Co-ordinator' role and use of the Sustainability Fund to support customers facing financial difficulties. Whilst we have made great progress, we have been unable to address the full impact of the crisis at this point.

Great Foundations

What went well

Completion of Board & Committee effectiveness review, with Action Plan approved by Board and being delivered.
Managed loan covenant headroom in line with our risk appetite, with gearing headroom in excess of £20 million.
Continued to ensure treasury management activities are effective through limiting exposure of variable debt and managing to fund all contracted activities from existing charge available facilities and cash.
Transacted £30 million of stand-alone interest rate swaps as part of the interest rate management strategy ahead of securing funding under the Government Affordable Homes Guarantee Scheme.
Completed £50 million of funding with support from ARA Venn who are administering the Government Guarantee Scheme providing loan finance to support the delivery of new social housing in Cornwall.

What didn’t go as well

Average gross cash arrears over a 12-month period was targeted to be less than £800,000 and at the end of 2023/24, we achieved £926,000. Whilst this didn’t meet the target, Coastline continues to show one of the lowest arrears levels in the country in terms of percentage of current tenant debt to annual income.

VALUE FOR MONEY (VfM)

To deliver ‘value for money’ (VfM), Coastline must continually look at how resources are used to achieve continuous improvement and excellence in running the business and improving productivity. When viewed in this way, it is clear that value for money is not a stand-alone activity, but something that is intrinsic to all core activities and decision-making processes.

There is therefore no single policy or strategy that sets out how value for money will be achieved. The various threads are pulled together in the Coastline Plan and there is a particularly strong link with performance management and improvement processes, with robust and effective management integral in the process of delivering and improving business productivity.

Our approach to ‘value for money’ is firmly embedded in our culture. From an ambitious Coastline Plan that is led by the Board and Executive Team and has clear, measurable and stretching objectives, to a suggestion scheme where all staff are empowered to propose ideas that will improve how the organisation is run, and rewarded for those that are implemented. We have a Senior Leadership Team that meets monthly to review financial and non-financial performance indicators, to share knowledge and to make decisions based on this information. Our Customers are also involved – with the Customer Voice and Customer Experience Committee specifying and reviewing a suite of performance information that they consider important. Performance reporting to Customer Voice is primarily via the Coastline Conversation which provides a regular update to the Customer Experience Committee meetings.

Our key VfM metrics are provided below:

----- Start of picture text -----
Current Sector SW 2022/23
RSH Reference Indicator Confirmed Results Year Budget Median Median Coastline to SW
(consolidated entity results) 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2021/22 2021/22 Trend Median
Metric 1 – Reinvestment % 18.0% 13.0% 13.3% 8.1% 8.9% 16.7% 6.5% 6.8%
Metric 2 – New Supply Delivered % 3.2% 5.3% 2.8% 3.6% 3.6% 3.9% 1.4% 1.9%
(a – Social housing units)
Metric 2 – New Supply Delivered % 0.0% 0.0% 0.1% 0.0% 0.4% 0.0% 0.0% 0.0%
(b – Non-social housing units)
Metric 3 – Gearing 57.2% 55.6% 57.4% 59.2% 54.7% 52.0% 44.1% 39.1%
Metric 4 – EBITDAMRI Interest Cover
(note different to Coastline loan covenants basis, 187.8% 184.7% 123.0% 103.0% 127.5% 141.3% 145.7% 180.5%
exc. Capitalised interest)
Metric 5 – Headline Social Housing Cost Per Unit £3,161 £3,320 £3,930 £4,431 £4,371 £4,512 £4,150 £4,233
Metric 6 – Operating Margin 35.9% 31.8% 29.3% 22.9% 18.0% 24.1% 23.3% 21.7%
(a – Social Housing Lettings)
Metric 6 – Operating Margin (b – Overall) 31.1% 26.2% 26.7% 20.4% 18.2% 24.4% 20.5% 20.2%
Metric 7 – Return on Capital Employed (ROCE) 5.9% 5.8% 4.1% 4.4% 3.0% 3.6% 3.2% 2.9%
----- End of picture text -----*

The Board has considered Coastline's approach to VfM at separate strategy days, reviewing comparative performance across the Sector Scorecard and the Regulator’s VfM Metrics.

Coastline also produces the Sector Scorecard agreed set of metrics, upon which housing providers can compare their performances as part of demonstrating that they are providing value for money for their Customers. It measures 15 indicators across five general areas focusing on: business health, development, outcomes delivered, effective asset management and operating efficiencies.

----- Start of picture text -----
Confirmed Results Current Year Budget MedianSector Current and Trend to
Theme Indicator Trend 2021/22
2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2021/22 Sector
Median
Business Health Operating Margin (overall) 31.1% 26.2% 26.7% 20.4% 18.2% 24.4% 20.54%
Operating Margin (sharing housing lettings) 35.9% 31.8% 29.3% 22.9% 18.0% 24.1% 23.63%
EBITDA MRI (as a percentage of interest) 187.8% 184.7% 123.0% 103.0% 127.5% 141.3% 147.10%
Development - Units developed (absolute) 150 303 160 185 205 210 93
capacity and
supply Units developed as percentage of units owned) 3.2% 5.3% 2.9% 3.6% 3.6% 3.9% 1.27%
Gearing 57.2% 55.6% 57.4% 59.2% 54.7% 52.0% 42.79%
Outcomes Customers satisfied with the service provided by 92.0% 89.5% 78.3% 78.2% 78.2 80% 79.40%
delivered their social housing provider
Investment in community activities
£281,603
Reinvestment
18.0% 13.0% 13.3% 8.1% 8.9% 16.7% 6.16%
Effective asset Return on capital employed (ROCE) 5.90% 5.80% 4.10% 4.40% 2.98% 3.60% 2.98%
management
Occupancy 98.8% 99.5% 99.5% 99.8% 98.80% 99.0% 99.58%
Ratio of responsive to planned maintenance 0.27 0.29 0.14 0.15 0.13 0.16 0.68
spend
Operating Headline social housing cost per unit
Efficiencies £3,161 £3,320 £3,930 £4,431 £4,371 £4,512 £4,019
Rent collected
99.56% 99.45% 98.90% 99.50% 100.00% 0.0% 96.12%
Overheads as a percentage of adjusted turnover 13.9% 13.1% 11.6% 13.7% 12.1% 11.3% 11.75%
----- End of picture text -----*

From 2020/21 Coastline has been a member of the Institute of Customer Services (ICS) and has undertaken annual business benchmarking to assess customer satisfaction.

** Customer satisfaction for 2023/24 will be reported against the new Regulatory Tenant Satisfaction Measures which include both perceptional and management data measures.

Both of the above metric tables are aligned with our strategic plan and our key highlights are:

Great Homes

We have completed 205 homes, a 3.9% rate of growth, during the year:

96 Affordable rent
8 Rent to Buy
71 Shared Ownership
20 Open Market
And developed 10 homes for Legal and General Housing Association as part of our strategic alliance.

Our strategic plan has an ambitious target delivery of 987 new homes during the period 2021-2025. Whilst we are in a strong financial position to pursue new development opportunities we are not complacent about potential risks to the business. We continue to undertake robust risk assessment, use prudent assumptions and run analysis on all development opportunities.

We continue to deliver new homes with an ambitious programme to increase new affordable homes in Cornwall. Coastline continued to deliver more affordable homes in Cornwall and for the last six years, have featured in the Inside Housing top ten fastest growing housing associations (based on units delivered by size). This is against a continuingly challenging market for any new home delivery in the aftermath of Covid and Brexit and Coastline is not exempt from these pressures. We have seen issues with contractor

insolvency, both material and labour shortages and pressures on overall cost. The impact of Covid on utility providers has also exacerbated time frames on site servicing.

Great Services

Whist accounting differences can distort the ratio of responsive to planned maintenance spend; we maintained our approach of being more proactive with our service delivery and seeking investment and renewal as opposed to on-going repairs. During 2022/23, only 10% of our repairs were classed as an emergency.

Customer satisfaction results, since 2020/21, have been collated from our annual business benchmarking through the Institute of Customer Services (ICS). The response scale for this is on a score of 1-10, with our previous internal Customer First survey response scale of 1-4. When adjusting for scoring methodology, a positive survey bias of around 8 percentage points is considered, our results are broadly comparable with both each other and the previous three years. The shift for 2023 is to a model that reflects the new Regulatory Tenant Satisfaction Measures and reporting for the next financial period will see this new base line established with the hope of benchmarking our service levels against others in the sector.

Great People

Whilst our headline social housing cost per unit has increased over the years, it still remains under the sector median. Our costs are increasing to reflect the investment, not only in our customer’s homes, but also investment in our colleagues. We are ensuring that our team has the capacity to grow and develop, which helps us become a great place to work and be respected for what we do and how we do it. We have invested heavily in our ICT infrastructure, our place of work, our training packages and our overall reward packages for colleagues. The aim of these is to retain and develop talented individuals to help us meet the aims set out in the Coastline Plan. All salaries were subject to an external benchmarking exercise completed by professional advisors in January 2022 with a refresh of the data in January 2023 alongside explicit additional benchmarking of a number of trades, ICT and other roles where colleague retention and the external market place were considered of potential concern. The key aim of this work is to ensure that our pay reflects others in the sector, south west and Cornwall more specifically to ensure that pay levels are in line with median rewards levels.

Great Foundations

Our approach to the strategic financial stewardship is expressed though a primary focus on our EBITDAMRI ratio to interest payable, essentially operating cashflows. We seek to maintain a healthy balance on risk mitigation and deploying our resources effectively by planning in the longer-term to exceed 135% EBITDAMRI but accepting below this in any one financial period to ensure customer service, property quality as well as colleague health and wellbeing.

During 2022/23, we increased our investment in our customers’ homes by over £3.0 million. This investment along with an increase in our cyclical repairs programme has meant that our operating margin reduced further this year to 18.2%. Our asset management approach has meant that we have seen a reduction in short-term operating margin resulting from our viability property disposals, which do however improve longterm margins and returns.

While we focus on interest cover as our main strategic financial planning tool, we still maintain a focus on our operating margin. While this measure reduced, in line with the rest of the sector, following the period of 1% rent reductions from 2016 to 2020, our comparison position moved to upper quartile. In more recent years, with our focus on deploying as much of our resources as possible to improve the quality of our homes

and customer service, the comparison position has moved to below median. Despite the focus on interest cover, the Board keep the operating margin under constant review, as this helps with assessing Coastline’s performance both in isolation and in the wider industry setting.

Over the past two years, we have taken advantage of our EBITDA MRI headroom by negotiating with lenders to reduce long-term interest cost liabilities by paying any mark to market fees. The change in interest rate environment over the last 12-months has seen a continual period of upward movement in rates. We have protected Coastline’s exposure during this time by continuing to expand the trading on our ISDA platforms with Santander and NatWest and completed the 2022/23 financial year with securing £50 million in fixed term debt under the Affordable Homes Guarantee Scheme. The successful completion of the asset security arrangements will see the drawn facilities reduce with the repayment of shorter-term and revolving credit facilities and an increase in the overall level of debt that is at fixed rates helping to manage our exposure to further interest rate movements in the years ahead.

Our gearing continues to increase as we invest heavily to build new homes. Whilst the final number of completions was below expectation during 2022/23, it is a level of completions which sees Coastline within the top 10 fastest growing housing providers for the sixth year in a row. We are the only organisation to deliver that level of growth consistently over that period and we aim to continue this growth. We continue to maximise our delivery of new housing investment as this investment delivers additional housing without adding significantly to our management cost base. This maintains the benefit of focusing our attention on housing delivery as well as generating value for money savings over time, which allows us to maintain our investment in wider community-based initiatives which are part of delivering high quality services.

GROUP HIGHLIGHTS, FIVE YEAR SUMMARY

	2019	2020	2021	2022	2023
	£m	£m	£m	£m	£m
Statement of Consolidated Income
Turnover: continuing activities	25.1	30.5	33.4	38.5	36.7
Turnover: Shared Ownership Sales	4.2	6.5	3.9	7.1	5.1
Income from lettings	22.9	24.5	26.0	27.2	28.7
Property depreciation	3.2	3.5	4.0	4.2	4.5
Operating surplus before housing sales	8.6	8.8	8.4	7.0	6.5
Operating surplus from social housing lettings	8.2	7.8	7.6	6.2	5.1
Operating surplus	9.1	9.7	8.9	7.9	6.7
Surplus for the financial year	11.4	10.9	7.5	7.4	6.3
Statement of Financial Position
Housing properties	218.1	245.7	277.9	296.3	318.6
Net current assets	9.6	8.8	13.2	15.2	68.7
Indebtedness	134.4	143.4	173.4	183.7	235.7
Total reserves	43.6	55.8	59.1	68.5	74.8
Statistics
Operating margin	36.3%	31.8%	26.6%	20.5%	18.3%

	2019	2020	2021	2022	2023
Operating margin excluding sales	41.1%	36.7%	28.5%	22.6%	20.6%
Surplus as % of turnover	45.4%	35.7%	22.5%	19.2%	17.2%
Operating margin social housing lettings	35.8%	31.8%	29.2%	22.8%	17.8%
Rent losses	£232,000	£403,000	£585,000	£459,000	£380,000
	£30,186
Gearing (tightest covenant)	per	50.6%	52.0%	53.6%	59.1%
	unit
EBITDA – MRI interest cover (tightest
covenant)	200.0%	218.0%	144.3%	131.3%	119.9%
	Units	Units	Units	Units	Units
Total social and supported rental	4,260	4,418	4,495	4,600	4,675
Total low costs home ownership	300	370	409	456	522
Total leasehold and market rent	112	123	122	129	130
Total housing	4,672	4,911	5,026	5,185	5,327

The results remain strong for 2022/23 and we have delivered a surplus for the year of £6.3 million (2022: £7.4 million). This surplus is stated after £5.0 million profit from property sales and £10.6 million costs to maintain our existing properties

We achieved first tranche sales of 48 against a target of 61, delivering an operating margin of £0.2 million versus a target of £1.1 million. Our outright sale of 4 homes against our target of 15, achieving an operating margin of break-even.

The surplus for the year meant we increased our net assets by £6.2 million with housing properties increasing by £22.3 million. We spent £10.8 million on housing under construction and completed 175 new homes with a value of £13.0 million.

The operating margin shows how efficient we are in running the business; and the operating surplus provides the cash we need to fund the construction of new homes and invest in improvements to our existing homes.

The Board have taken the strategic view that Coastline should utilise its resources to invest in existing homes and services and in new homes, rather than protecting the operating margin.

Continuing performance is the result of an ongoing focus on delivering efficient, customer focussed services. Our strong financial performance, combined with our high levels of customer satisfaction, provide strong evidence that we are, in the main, delivering the right services in an efficient and cost effective way.

CAPITAL STRUCTURE AND TREASURY

During the year and at year end, our capital structure was based on bank borrowings, spread across three main lenders, together with capital market bond issues. At 31 March 2023, the breakdown of borrowings was as set out below:

	Arranged	Drawn	Undrawn
	£m	£m	£m
Bank loans	246.0	195.0	51.0
Bond issues	8.2	8.2	-
Private placement	32.6	32.6	-
Total funding	286.7	235.7	51.0

Borrowing facilities are at both fixed and floating rates of interest in order to manage exposure to interest rate fluctuations. At 31 March 2023, fixed rates of interest ranged from 1.0% to 6.98%.

The main change during the year was the completion of the loan agreement under the Government Affordable Homes Guarantee Scheme of £50 million. As at 31 March 2023 these funds were in a charged account pending the completion of the reallocation of asset security from NatWest. Reflecting this there was a significant amount of cash held at the year-end which following completion of the asset security has been used to repay a mixture of shorter-term and revolving facilities with Coastline lenders.

Type of exposure	Actual	Minimum	Maximum
Fixed rate	195.6	97.8	195.6
Floating rate	40.1	0.0	117.8

Coastline ensures it has sufficient liquidity to cover 12 months forecast net cash requirements. At year-end, we had sufficient liquidity to cover over the next five years.

At the year-end, our drawn borrowings of £235.7 million were repayable as follows:

	2019	2020	2021	2022	2023
	£m	£m	£m	£m	£m
Within one year	-	1.0	-	-	-
Between one and two years	1.0	-	-	-	-
Between two and five years	27.7	36.0	67.7	46.8	89.5
After five years	105.7	106.4	105.7	136.9	146.2
Total borrowings	134.4	143.4	173.4	183.7	235.7

Cash inflows and outflows are shown in the Group cash flow statement on page 39. The net increase in cash was £55.4 million and predominantly due to the investment in our new and existing homes.

GOVERNANCE

----- Start of picture text -----
BOARD
----- End of picture text -----

----- Start of picture text -----
AUDIT, RISK AND ASSURANCE PROPERTY AND INVESTMENT CUSTOMER EXPERIENCE
PEOPLE COMMITTEE
COMMITTEE COMMITTEE COMMITTEE
Responsible for
overseeing funding
requirements and
Responsible for Responsible for overseeing
arrangements, 30 year
overseeing risk and Responsible for assisting the customer expereince
assurance, finanical the Board to meet its business plan along with for Coastline
the stress tests and
management, internal strategic responsibilities in
and external audit, and relation to its people defensive action plan,
review of the Asset & activities and developments performance of the Members:
Liability Register in ever chnaging working development and Steve Harrision (Chair)
and operational maintenance
Kelly Kemp (NED)
enviroments programmes, oversee
David Barlow (NED)
Members: the asset management
Karen Harris (Chair) Members: and repairs strategy, and Paul Doddrell (NED)
review contract David Barlow (NED)
Charles Pears (NED) Steve Harrison (Chair) procument Edward Champman
Allister Young (CEO)
David Barlow (NED) Members: (customer)
Karen Harris (NED)
Paul Doddrell (NED) Andrew Moore (Chair) Clare Jones (customer)
Ben Treleaven (NED)
Michelle Tucker Charles Pears (NED) Steve Curtis (customer)
(Independent Member) Molly Guant (customer)
Mark Duddridge (NED)
Ben Treleaven (NED)
Allister Young (CEO)
----- End of picture text -----

EXECUTIVE TEAM

The Board is composed of 10 non-executive members including one executive member, with meetings taking place at least six times a year. Board members are drawn from a range of backgrounds. Our appointments policy for non-executive Board and committee members is skills based and aims to ensure appropriate representation of the business needs.

The Board controls the Group’s strategic direction and reviews its operating and financial position. It is supplied with timely and relevant information to enable it to discharge its duties. Board papers are distributed in advance of meetings and papers are sufficiently detailed to enable the Directors to understand Coastline’s management and performance.

The Board delegate some of its responsibilities to committees. Each committee has clear terms of reference and delegated authority. The committees report back to the Board after each meeting, where their recommendations are considered and approved where appropriate. Each committee is chaired by a member of the Board and they meet quarterly.

Board members undergo an induction programme with regular training either formal or through attending conferences. Each member is expected to attend at least 80% of meetings each year and all are subject to regular performance reviews. The Board members who have served throughout 2022/23 are listed on page 3.

Code of Governance

The Board has adopted the National Housing Federation Code of Governance (2020), and maintains the provision for up to two co-opted members in addition to the Board of up to ten within the Company’s Articles.

Coastline fully complies with the NHF Code of Governance (2020).

Customer Involvement

The Customer Experience Committee is a committee of Customers and NED’s that oversees the customer experience for Coastline and makes recommendations to the Board. This approach is considered a key element of ‘co-regulation’ and provides further assurance over performance and the internal control environment.

We have 56 regularly involved customers and a further 79 volunteers working with us. In addition we surveyed 4,977 customers for their views on our services and any issues they have experienced.

Employees

Coastline relies on the quality and commitment of its employees in order to meet its corporate objectives. We ensure that sufficient staff with appropriate skills are employed and that effective employment policies are in place and good practice is followed. The Board expresses its thanks for the hard work and commitment shown by all employees and volunteers throughout Coastline.

Equal Opportunities

We are committed to an equal opportunities policy within which it actively encourages applications for employment from all groups in society. We are also committed to an equality and diversity agenda designed to ensure equal access to its services and are an accredited Living Wage Accredited Employer. We have recently been successful in gaining Level 3 Disability Confident Leader accreditation status, moving up from Level 2.

We recognises the importance of a culturally inclusive environment and demonstrate our commitment to this across all business areas and decisions. We have a dedicated EDI steering group to help drive not only legal compliance requirements but also lead on, develop and demonstrate the practical adaptations across our workforce. We have a robust corporate E&D policy, regularly review and make adjustments for colleagues and candidates bespoke needs. We work closely with a local Occupational Health Provider, offer paid Employee Assistant Programme, free counselling provisions and trauma support and we also have a flexible work placement and volunteer scheme where we work closely with FedCap, the Job Centre

Plus and other organisations helping giving people an opportunity to learn, train and gain new skills that will support them back into the workplace.

We continue to publish our Gender Pay results, which are as follows:

----- Start of picture text -----
Apr-23 Apr-22
Male Female Male Female
Group Head Count 168 185 154 176
Mean Hourly Rate £ 15.50 £ 14.42 £ 15.21 £ 14.35
Median Hourly Rate £ 13.44 £ 12.62 £ 12.51 £ 12.79
Mean Bonus £ 371.51 £ 384.26 £1,230.87 £1,281.14
Median Bonus £ 500.00 £ 425.68 £ 990.27 £1,333.97
% Not receiving bonus 23.81% 15.68% 23.38% 12.50%
----- End of picture text -----

The most significant change is in relation to the headline performance bonus amounts, which were reduced for 2022/23 reflecting a redirection of these amounts into headline pay earlier in the year and the balance being paid as a fixed amount to those earning under £38,000 to maximise the impact of these amounts toward lower paid colleagues.

	Pay Quartiles by gender(adjustedratewhich includes bonus)	Pay Quartiles by gender(adjustedratewhich includes bonus)	Pay Quartiles by gender(adjustedratewhich includes bonus)	Pay Quartiles by gender(adjustedratewhich includes bonus)	Pay Quartiles by gender(adjustedratewhich includes bonus)
Band	Apr-23		Apr-22		Description
	Male	Female	Male	Female
1	51%	49%	45%	55%	Includes all employees whose hourly rate places them at orbelowthelowerquartile
2	30%	70%	65%	35%	Includes all employees whose hourly rate places them above thelowerquartile but at orbelowthemedian
3	55%	45%	53%	47%	Includes all employees whose hourly rate places them above themedianbut at orbelowthe upperquartile
Highest	55%	45%	45%	55%	Includes all employees whose hourly rate places them above the upperquartile

During 2022/23, we improved the pay for employees within our extra care and supported housing staff. Staff in these areas are mainly female and has caused the shift for these employees being treated as band 1 to band 2. The decision reflected wider changes in the local employment market and our on-going desire to remain an accredited Living Wage employer ( For the real cost of living | Living Wage Foundation) .

Another key measure for Coastline reflecting the outputs from the Hutton review is the ratio of highest paid to the median salary level (excluding the highest paid). The ratio based on April data in line with the gender reporting above (i.e. excluding pension contributions) showed that the ratio for Coastline was 5.15:1 (2022, 5.45:1).

Further details of Executive and staff salaries can be found in the Notes to the Financial Statements (note 9, page 57).

INTERNAL CONTROL AND RISK MANAGEMENT

APPROACH

The Group Board has overall responsibility for the system of internal control and risk management across the Group and for reviewing its effectiveness. The Board also takes steps to ensure the Group adheres to the regulators Governance and Financial Viability standard and its associated code. The Audit, Risk & Assurance Committee is responsible to the Board for monitoring these arrangements and reporting on their effectiveness.

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.

ASSURANCE

Assurance over the internal control environment is provided in a number of ways, the most significant of which are set out below;

A established management structure operating across the Group, with clearly defined levels of responsibility and delegated authorities as outlined in the Standing Orders which include Terms of Reference for the Board and Committees;
Supported by established policies designed to provide effective internal control and achieve effective corporate governance, including Group-wide policies on;
Financial Regulation;
Business Ethics Anti-Fraud Bribery & Money Laundering;
Safety, Health and Environment;
Code of Conduct;
Gifts and Hospitality;
Procurement;
Equality, Diversity and Inclusion;
Whistle Blowing – Confidential Disclosure;
Data Protection; and
Together with policies covering all aspects of Employment Law and operational policies.
Creating and maintaining an environment where our priority is to care for our people, and those who work with us. We believe that all accidents are preventable and therefore operate an open environment to encourage, report and therefore learn from) incidents. Coastline’s Safety, Health and Environmental (SHE) Policy is reviewed annually by Board. There are quarterly Management reviews of SHE performance from which the minutes are reported to Executive Team meetings. All Board meetings also receive a SHE performance report including statistics of accidents, incidents and near misses.
Adopting and complying with the National Housing Federation 2020 Code of Governance;
A Group wide risk management system – an established process for identifying, evaluating, and managing risks faced by the Group;

Customer Scrutiny – Direct lived experience from Coastline communities is brought to the Executive Team and the Board through the Customer Voice, Customer Experience Committee and a complaints process, which meets expectations of the Housing Ombudsman Service Complaint Handling Code. All of which are used as a key feedback loop on assurance;
Audit, Risk & Assurance Committee assurance – The Board has delegated authority to this Committee to review the effectiveness of internal control, including risk management and has received regular reports from this Committee throughout the year under review. This Committee meets regularly with members of the Executive Team and the internal auditors to review specific reporting and internal control matters and to satisfy themselves that the internal control systems are operating effectively. The Audit, Risk and Assurance Committee also review and follow up actions to correct identified weaknesses. Board members have access to the minutes of all Audit, Risk and Assurance Committee meetings;
Internal audit assurance – is managed through the Group governance function and is delivered by Bishop Fleming, whose reports are received by the Audit, Risk & Assurance Committee. The internal audit programme is designed to review key areas of risk and adherence to key policies and relevant laws. The programme is agreed formally and kept under review by the Audit, Risk & Assurance Committee;
External audit assurance – is managed through the Group finance function and is delivered by PKF Francis Clark. The work of the external auditors provides further independent assurance, as outlined in their audit report. The external auditors have a duty to report to the Board significant matters relating to control weaknesses and inefficiencies that come to their attention during the course of their audit work under the Code of Audit Practice. The Group also receives a letter from the external auditors identifying any internal control weaknesses. In accordance with best practice, the Audit, Risk and Assurance Committee and Board consider this letter;
In addition to the external and internal audit functions, a number of independent specialist compliance audits are commissioned each year to supplement the assurance framework. These cover areas such as our Gas Servicing programme, Health and Safety arrangements, Fire Risk Assessments, Legionella Management, Radon monitoring and Asbestos Management;
Preparation and monitoring of budgets – the Executive Team, the Audit, Risk & Assurance Committee and Board all review Group and subsidiary performance throughout the year. These reports ensure variances are investigated and acted upon. In addition, treasury activity and strategy are subject to regular Board review and approval; and
A process for approving all investment decisions – all investment decisions are subject to appraisal and approval by the Executive Team, the Property & Investment Committee and the Board, in accordance with a delegation framework.

RISK MANAGEMENT

Management responsibility has been clearly defined for the identification, evaluation and control of risks throughout the Group. There is a formal process of management review through a quarterly reporting framework from management, through the Executive Team to the Audit, Risk and Assurance Committee. The Board formally reviews the risk map and sets the Group’s risk appetite on an annual basis.

This Audit, Risk and Assurance Committee reviews the Group’s strategic and significant risks and the overall risk position compared to the Board’s agreed risk appetite each quarter, and the minutes of the

meeting are subsequently reviewed by the Board. At these quarterly reviews the Committee also conducts a deep dive into the entire risk map of a chosen operational area.

The Group risk appetite has been confirmed as remaining ‘cautious’ as part of the Annual Risk Review as recommended by the Audit, Risk and Assurance Committee and subsequently agreed and approved by the Board as part of the same Annual Risk Review in May 2023. This appetite reflects concerns about the continuing level of uncertainty surrounding the wider economic recovery and recovery following the coronavirus pandemic. Our vision is to create and maintain an environment where care for our people, and those who work with us, is our top priority; where the belief that all accidents are preventable prevails.

Strategic Risks are those which are considered to be of fundamental importance to the formulation and delivery of Coastline Plan objectives and are summarised as:

Strategic Risk	Risk Mitigation Strategy
Product Safety (including landlord health and safety)	•Detailed assurance map on property related requirements coupled with third party expert reviews for example CORGI accredited Landlord Gas Safety processes. •Development handover process review by internal auditors and all new build defect repairs treated the same as responsive repairs. •Pro-active identification of RADON potential issue and reporting to Board. •Pro-active review of all buildings in relation to fire safety despite no buildings over 18m.
Human Resources and Governance (including Board, Executive, staff and volunteers in relation to skills)	•Rolling programme of NED recruitment. •Investment in apprenticeships across the business to build skills and capacity for the future. •Significant investment in safer working practices for staff. •Investors in People ‘Silver’ rated employer. •Investors in Volunteers accreditation and effective deployment of additional resources within business to support charitable activities. •Health and Wellbeing Strategy with significant focus on colleagues’ mental health.
Government Policy, legislation and regulation	•Active involvement with trade body the National Housing Federation and PlaceShapers group of Housing Associations alongside maintaining effective dialogue with Cornwall Council, local MP’s and Parish Councils.
Funding and financial viability	•Annual finance strategy and constant market engagement to maintain existing and develop additional sources of finance.
Wider Economic (including sales, rental level exposures as well as interest and inflation rates)	•Exposure to sales limited to ensure that change of product mitigates risk. •Regular reporting to Property and Investment Committee and Board on key economic indicators alongside stress testing and scenario planning to inform Defensive Action Plan.

Programme (impact of planned expansion on internal systems of governance, management and delivery)	•Investment into ICT to provide systems and infrastructure that can support growth •Cross departmental working supporting issues of peak delivery. Board recruitment focussed on skills that will help support and challenge delivery of extensive ICT and new homes investment.
Reputation and Trust (including potential communications failure exacerbating issues)	•Business continuity planning and communications strategy in place to mitigate risk •Customer Charter pledge commitments includes response time promise of four days coupled with simplified complaints process to ensure that any service failures are promptly dealt with
Technology, Data and Cybersecurity	•On-going programme of training and upgrading of core systems across the business coupled with regular sessions led by the Head of ICT to promote and co-ordinate opportunities for technology based improvements across the business •Cyber insurance provides access to experts in case of major incident. •Regular Data Quality Meetings chaired by Director of Finance, People & Change with representation from across Coastline teams •Data standards enforced with all changes to key fields in housing management, CRM or Service Connect needing to be approved at Data Quality or Applications Steering Group.
Markets and Supply Chain(including market consolidation, securing development opportunities and overall consideration of supply chain considerations across all aspects of operations and development investment)	•Digital access and customer first strategy coupled with ICT strategy to improve service offering to Customers and colleagues to improve interactions with and across Coastline. •Active discussions with Cornwall Council, Homes England and others on potential strategic alliances to maximise development opportunities. •Strategic alliance with Legal and General Affordable Homes providing scope to engage and shape new entrant in social housing markets offering.
Climate Changeand related impacts across all of the above strategic risks.	•Coastline Plan post 2021-25 includes objectives to contribute towards alleviating both the causes and impact of climate change on the communities we work in •Environmental Strategy approved in September 2021

FRAUD AND SIGNIFICANT CONTROL FAILINGS

Coastline complies with the Regulator’s requirements with respect to fraud and has a policy requiring a register to be maintained of all actual and attempted fraud, with all cases reported to the Board through the Audit, Risk and Assurance Committee and submitted to the Regulator of Social Housing.

The Audit, Risk and Assurance Committee have reviewed an annual report on Internal Controls Assurance, which has subsequently been approved by the Board. No significant control failings or fraud have been identified during the period.

OVERALL ASSESSMENT

The Board is satisfied that the Group's risk management and internal control systems remained effective during the year to 31 March 2023 and up to the date of the approval of these financial statements.

No weaknesses in internal control which resulted in material misstatement or loss have been identified sufficient to cause material misstatement or loss, which would have required disclosure in these financial statements.

MERGER CODE

In March 2016 the Board considered and adopted the NHF Merger Code. This voluntary code sets out ten principles which form a framework for considering the various ‘partnering’ opportunities that may arise.

The Board regularly reviews its position, the latest being in May 2021, re-asserting Coastline’s commitment to the principles within that code. Coastline’s corporate values and approved policy includes involving the Board and Executive Team for evaluating merger and strategic alliance opportunities.

OTHER DISCLOSURES

Directors’ and Officers’ Liability Insurance

The Company has maintained Directors’ and Officers’ liability insurance throughout the year. From April 2021 this cover has been provided by Weald Insurance Brokers Ltd following the discontinuation of the offering from the NHF.

Charitable and Political Donations

No political donations were made during the year (2022: £nil). Donations made to charity or other community funding arrangements during the year totalled £16,497 (2022: £16,570).

Disclosure of Information to Auditors

The Board members who held office at the date of approval of this Board report confirm that:

so far as they are each aware, there is no relevant audit information of which the Group’s auditors are unaware; and
each Director has taken all the steps that they ought to have taken as a Director to make themselves aware of any relevant audit information and to establish that the Group’s auditors are aware of that information.

Going Concern

The Board confirms it has a reasonable expectation that the Group and Company has adequate resources to continue in operational existence for a period of 12 months from the date of approval of these financial statements. Accordingly it continues to adopt the going concern basis in preparing the Group’s and Company’s financial statements.

STATEMENT OF DIRECTORS’ RESPONSIBILITIES IN RESPECT OF THE STRATEGIC REPORT, THE DIRECTORS’ REPORT AND THE FINANCIAL STATEMENTS

The directors are responsible for preparing the Strategic Report, the Directors’ Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland .

Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the surplus or deficit for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards and the Statement of Recommended Practice have been followed, subject to any material departures disclosed and explained in the financial statements; and
assess the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2019. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

By order of the Board

S Harrison Interim Chair – Coastline Housing Ltd

SECTION 172 STATEMENT

The revised UK Corporate Governance Code (‘2018 Code’) was published in July 2018 and applies to accounting periods beginning on or after January 1, 2019. The Companies (Miscellaneous Reporting) Regulations 2018 (‘2018 MRR’) require Directors to explain how they considered the interests of key stakeholders and the broader matters set out in section 172(1) (A) to (F) of the Companies Act 2006 (‘S172’) when performing their duty to promote the success of the Company under S172. This includes considering the interest of other stakeholders which will have an impact on the long-term success of the company. This S172 statement explains how our Directors:

have engaged with employees, suppliers, customers and others; and
have had regard to employee interests, the need to foster Coastline’s business relationships with suppliers, customers and other, and the effect of that regards, including on the principal decisions taken by the company during the financial year.
The S172 statement focuses on matters of strategic importance to Coastline, and the level of information disclosed is consistent with the size and the complexity of the business.

How the Board complied with its Section 172 duty

The Board welcomes this reporting requirement as a further opportunity to explain how dialogue with stakeholders has been woven into the fabric of Coastline decision making. Recent examples of this are: Involvement in ‘Homes for Cornwall’; establishment of and then strengthening of Customer Experience Committee, and other customer engagement through Customer Voice; engagement with Cornwall Council through Cornwall & Isles of Scilly Strategic Housing Group, and wider voluntary sector through the Voluntary Sector Alliance; independent review of effectiveness of governance; development of new People & Culture strategy with colleagues and completion of remuneration benchmarking, Living Wage Foundation membership, positive gender pay gap; expert speakers at Board strategy sessions, including economic experts from University of Exeter and advisors to the UK Climate Change Committee and extensive engagement with customers and colleagues on Environment Strategy.

Our Coastline plan was built up using engagement from Customers, colleagues and input from wider stakeholders and was launched in 2021 and was presented to Board for approval by the employees involved in the process. Our employees continue to update Board on progress regularly against the targets for the homes and services that Coastline provides that stretches both our financial and human resources and maximises delivery against our charitable mission

During 2022/23, board recruitment was in line with the National Housing Federation 2020 Code of Governance. We have improved the diversity of our Directors, particularly in age, and have strengthened engagement with business continuity through wider concern about housing and our new contacts through our Directors.

Delegation of authority

The Board believes that governance of Coastline is best achieved by delegation of its authority for the executive management of Coastline to the CEO, subject to defined limits and monitoring by the Board and Committee structures (for reference see page 20).

The Board routinely monitors the delegation of authority, ensuring it is regularly updated, while retaining ultimate responsibility. The most recent review was completed as part of an independent Board effectiveness review which reported back to the Board in May 2022 and defined an action plan which has

been monitored on the Board’s behalf by the Audit, Risk and Assurance Committee and delivered by Management.

The Board has a long-standing corporate governance framework which reflects the charitable status of Coastline and the regulatory frameworks for Social Housing, Supported Housing and Extra Care services.

The current framework covers the following principle areas:

Company Purpose

Pursuing Coastline’s charitable objectives and accountability to communities and other stakeholders for the company’s actions. This means focussing primarily on strategic issues, while having regard to economic, political and social issues and other external factors particularly with reference to those impacting Cornwall.

2. Strategy

Responsibility for establishing and reviewing the long-term strategy, Corporate Plan and the financial business plan for Coastline, based on proposals made by management for achieving Coastline’s purpose.

Monitoring decisions on the management team and the performance of Coastline Including implementation of, and performance against the strategy and the business plan and the exercise of authority delegated to committees and management. The Board satisfies itself that emerging and principal risks to Coastline are identified and understood, systems of risk management, compliance and controls are in place to mitigate such risks and expected conduct of Coastline’s business and its employees is reflected in a shared set of Coastline values.
Succession

Ensuring that systems and processes are in place for succession, evaluation and compensation of the CEO, executive and non-executive directors and all colleagues at Coastline.

During 2022/23 our directors continued to exercise all their duties, while having regard to these and other factors as they reviewed and considered proposals from management and governed the company on behalf of its charitable purpose through the Board.

Section 172 Factor	Key Examples	Page(s)
Section 172 (1) (A) Consequence of any decision in the long term	Company purpose Strategic Plan	8, 9, 10, 11, 12, 13
Section 172 (1) (B) Interests of employees	Gender Pay Reporting	22
Section 172 (1) (C) Fostering business relationships with suppliers, customers and others	Strategy, objectives and performance	10 to 22
Section 172 (1) (D) Impact of operations on the community and the environment	Strategy, objectives and performance	10 to 22, 31
Section 172 (1) (E) Maintaining high standard of business conduct	Governance and Committee Structures Risk management	20, 23 to 27
Section 172 (1) (F) Acting fairly between members	Balanced long-term decision making Code of Governance	10 to 21

Streamlined Energy and Carbon Reporting (SECR)

Coastline is a social housing landlord and therefore the majority of environmental impact is drawn from the energy used by domestic property portfolio. Coastline surveyed 4,635 domestic homes which includes general needs, supported and Extra Care accommodation and for the purposes of SECR operational impacts, included utility costs from office spaces, fleet vehicle and staff vehicle mileage.

In terms of corporate impact which is directly accountable to the operations of the business;

Green House Gas Emissions (GHG) and Energy 1 April 2022-31 March 2023	Green House Gas Emissions (GHG) and Energy 1 April 2022-31 March 2023	Green House Gas Emissions (GHG) and Energy 1 April 2022-31 March 2023
	Total Tonnes CO2	Units
Scope 1 – Direct Emissions
Fuel for transport purposes	179.97	791,157.52 kWh
Natural Gas	296.55	1,624,588.34kWh
Scope 2 – Indirect Emissions
Electricity	161.18	833,481.18 kWh
Total – Scope 1 + 2	637.70
Scope 3 – Other Indirect Emissions
Housing Stock	10,394.53	4,635 homes
Grand Total	11,032.23
Intensity Ratio	2.38 tonnes CO2 per home managed

Methodology

Each activity has been calculated in the appropriate units of measure and then converted to metric carbon tonnes to provide consistency.

Energy Efficiency Action

Coastline delivered a wide range of cost-effective improvements as driven by the year 1 work packages relating to the Environmental Strategy. These improvements include tree planting community projects, wildflower and native hedging areas. In addition a Tool Loan Project has been launched with a great success to provide gardening tools for customers who cannot afford equipment to improve their gardens.

Skip Amnesty Days have also taken place in which were well received by customers and reduced the risk of fly-tipping due to fees that are imposed by Cornwall Council.

Coastline has a dedicated team who work with customers to maximise their income and increase their ability to pay their bills (not just focussing on fuel poverty). An internal sustainability fund remains available to customers and £55,000 of this was used to support customers, including the provision of essential items, food vouchers, white goods and assistance with fuel debt to enable servicing to take place, over the course of 2022/23. Energy information relating to home ratings has been published on social media and regularly within Coastlines customer magazine, alongside energy saving advice and guidance.

During the reporting year Coastline calculated that 43% of repairs and maintenance materials were responsibly sourced therefore 43% can be considered as a baseline with annual increases and long-term target to achieve 100% responsibly sourced by 2050. Main suppliers have been approached to provide improved information in terms of environmental impact of goods supplied.

In terms of property asset investment Coastline continued to invest in lower carbon and more efficient heating sources and systems. As an example the grant funded “Heat the Streets” project will come to an end in July 2023 with 38 homes upgraded to ground source heating and 4 more future connections available. These investments continue to reduce customer fuel costs and environmental impact. The overall housing stock environmental impact has reduced from 2.69 tonnes CO2e per home in 2022/23 to 2.38 tonnes CO2e per home, reflecting positive impact of these investment works.

The second SHIFT Assessment has confirmed positive steps in terms of reducing environmental impact across the company with an overall reduction in energy use of gas, electric and fuel of 259,656 kwh from 3,508,882 kWh in 2021/22 to 3,249,226 kWh in 2022/23. The total gross Scope 1, Scope 2 and Scope 3 emissions / tCO2e has reduced from 12,120 tonnes CO2e to 11,032 tonnes CO2e, equating to a reduction of 1,088 tonnes of Carbon Dioxide (CO2e).

By order of the Board

Steve Harrison Interim Chair – Coastline Housing Ltd 31 August 2023

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF COASTLINE HOUSING LIMITED

Opinion

We have audited the financial statements of Coastline Housing Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023, which comprise the Consolidated Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Consolidated Cash Flow Statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2023 and of the group's surplus for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2019.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Board of director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the Board with respect to going concern are described in the relevant sections of this report.

Other information

The Board of directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we

identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Director’s report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Responsibilities of Board of directors

As explained more fully in the Director’s report set out from page 3, the Board of directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Board of directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of directors are responsible for assessing the group’s and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of our audit planning, we obtained an understanding of the legal and regulatory framework that is applicable to the group. We gained an understanding of the industry in which the group operates as part of this assessment to identify the key laws and regulations affecting the group and parent company. As part of this, we made enquiries with the Board of directors and the group audit risk and assurance committee, reviewed group policies and procedures regarding both compliance and fraud detection/prevention, reviewed group annual compliance report and carried out a review of the Board, and group audit, risk and assurance committee minutes. The key regulations we identified were tax legislation, health and safety regulations, including landlord health and safety and RSH compliance, breaches of The General Data Protection Regulation (“GDPR”) and the regulations of the Care Quality

Commission (CQC). We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.

We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the group and parent company’s ability to continue operating and the risk of material misstatement to the accounts. We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements including meeting loan covenants and regulatory performance targets. Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:

Enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements.
Review of regulatory and legal correspondence and group compliance reports.
Review of CQC ratings and enquiries of management in relation to any ongoing CQC reviews and communications.
Review of the group’s GDPR register and enquiries of the group's compliance officer as to the occurrence and outcome of any reportable breaches.
Reviewed legal and professional costs to identify any possible non-compliance or legal costs in respect of non-compliance.

We assessed the susceptibility of the financial statements to material misstatement through management override or fraud, including in relation to development income, and obtained an understanding of the controls in place to mitigate the risk of fraud. We also discussed with management whether there had been any instances of known or alleged fraud. Based upon our understanding we designed and conducted audit procedures including:

Audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. 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 the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

...................................... Duncan Leslie (Senior Statutory Auditor) PKF Francis Clark, Statutory Auditor Lowin House Tregolls Road Truro TR1 2NA Date: 13/09/2023

Group and Company Statement of Comprehensive Income for the year ended 31 March 2023

Note Turnover: continuing activities 2 Cost of sales 2 Operating costs 2 Operating surplus 2 Gift aid receivable Surplus on sales of properties 5 Other finance expenditure 6 Interest receivable and other income Interest payable and similar charges 7 Surplus for the year before taxation 4 Tax on surplus 26 Surplus for the year Other Comprehensive Income Actuarial Gain/(loss) on pension scheme 24 Total recognised surplus for the year	GROUP 2023 £’000 2022 £’000 36,690 38,522 (4,829) (6,648) (25,189) (23,999) 6,672 7,875 - - 5,034 6,112 (660) (653) 85 52 (4,808) (6,012) 6,323 7,374 - - 6,323 7,374 (100) 1,983 6,223 9,357	COMPANY 2023 £’000 2022 £’000 36,332 36,342 (4,829) (6,648) (24,862) (22,179)
		6,641 7,515 178 497 5,034 6,112 (660) (653) 85 59 (4,808) (6,012)
		6,470 7,518 - -
		6,470 7,518
		(100) 1,983
		6,370 9,501

All the above results derive from continuing operations and are on a historic cost basis.

The Statement of Comprehensive Income and Other Comprehensive Income was approved by the Board on 31 August 2023 and signed on its behalf by:

S Harrison Interim Chair

K Harris Chair of Audit, Risk and Assurance Committee

Statement of Financial Position as at 31 March 2023 (Reg. Number: 03284666)

Fixed assets: Intangible fixed assets Housing properties Other tangible fixed assets Investments Total fixed assets Current assets: Stock Rental and other debtors Cash and cash equivalents Total current assets Creditors: amounts falling due within one year Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year Pension deficit funding liabilities Pension defined benefit liability Provision for tax liabilities Net assets Represented by: Capital and reserves: Revenue reserves	Note 11 12 13 14 16 15 17 18	GROUP 2023 £’000 2022 £’000 352 328 318,647 296,333 5,219 4,649 - - 324,218 301,310 20,873 15,753 2,164 3,191 61,546 6,196 84,583 25,140 (15,966) (9,977) 68,617 15,163 392,835 316,473 (316,662) (246,564) (95) (138) (1,310) (1,226) - - 74,768 68,545 74,768 68,545 74,768 68,545	COMPANY 2023 £’000 2022 £’000 352 328 319,795 297,345 5,198 4,622 75 75
			325,420 302,370 20,505 15,116 2,077 2,904 60,695 5,270
			83,277 23,290 (15,321) (8,793)
			67,956 14,497
			393,376 316,867
	19		(316,662) (246,564) (95) (138) (1,310) (1,226) - -
	23 23 27
			75,309 68,939
			75,309 68,939
			75,309 68,939

These financial statements were approved by the Board on 31 August 2023 and signed on its behalf by:

S Harrison Interim Chair

K Harris Chair of Audit, Risk and Assurance Committee

Consolidated Statement of Cash Flows for the year ended 31 March 2023

023
Cash flows from operating activities Surplus for the year *Adjustments for non-cash items:* Depreciation and impairment charges Amortisation of intangible fixed assets Profit on sale of housing properties Loss on sale of tangible fixed assets Taxation Decrease in trade and other debtors Increase in stocks (Decrease)/Increase in trade, other creditors and provisions Pension costs less contributions payable *Adjustments for investing or financing activities:* Interest receivable and similar income Interest payable and similar charges Amortisation of loan arrangement fees Government grants utilised in the year Tax paid Net cash from operating activities Cash flows from investing activities Sale of housing properties Sale of other fixed assets Interest received Acquisitions of housing properties Capital improvements to existing properties Acquisitions of other fixed assets Grants received to support capital expenditure Net cash from investing activities Cash flows from financing activities Interest paid New secured loans Repayment of loans Loan arrangement fees Net cash from financing activities Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at 1 April (i) Cash and cash equivalents at 31 March	2023 2022 £000 £000 6,323 7,374 5,204 4,858 59 78 (5,034) (6,112) - - - - 1,027 1,131 (5,120) (7,357) 6,043 (1,493) - - (85) (59) 2,604 4,053 362 377 (1,053) (1,033) - -
	10,330 1,817
	5,416 7,109 - - - - (21,349) (3,692) (18,802) (2,882) (1,308) (745) 19,066 3,689
	(1,867) (11,631)
	(4,723) (5,953) 61,000 28,000 (8,950) (17,741) (440) (361)
	46,887 3,945
	55,350 (5,869) 6,196 12,065
	61,546 6,196

(i) Analysis of changes in net debt

GROUP Cash and cash equivalents Cash Overdrafts Cash equivalents Borrowings Debt due within one year Debt due after one year Total	At 1 April 2022 Cash flows Other non- cash changes At 31 March 2023 £000 £000 £000 £000 6,196 55,350 - 61,546 - - - - - - - -
	6,196 55,350 - 61,546
	- - - - (183,687) (52,088) - (235,775)
	(183,687) (52,088) - (235,775)

	(177,491) 3,262 - (174,229)

Statement of Changes in Equity

GROUP Balance at 1 April 2021 Surplus for the year Other comprehensive income (see note 24) Total comprehensive income for the year Transfer from Garlidna Reserve Balance at 31 March 2022 Balance at 1 April 2022 Surplus for the year Other comprehensive income (see note 24) Total comprehensive income for the year Transfer to Garlidna Reserve Balance at 31 March 2023 COMPANY Balance at 1 April 2021 Surplus for the year Other comprehensive income (see note 24) Total comprehensive income for the year Transfer from Garlidna Reserve Balance at 31 March 2022 Balance at 1 April 2022 Surplus for the year Other comprehensive income (see note 24) Total comprehensive income for the year Transfer to Garlidna Reserve Balance at 31 March 2023	Revenue reserve Garlidna reserve Restricted reserve Total equity £000 £000 £000 £000 58,951 205 32 59,188 7,374 - - 7,374 1,983 - - 1,983
	9,357 - - 9,357 (31) 31 - -
	68,277 236 32 68,545
	68,277 236 32 68,545 6,323 - - 6,323 (100) - - (100)
	6,223 - - 6,223 (25) 25 - -
	74,475 261 32 74,768
	Revenue reserve Garlidna reserve Restricted reserve Total equity £000 £000 £000 £000 59,201 205 32 59,438 7,518 - - 7,518 1,983 - - 1,983
	9,501 - - 9,501 (31) 31 - -
	68,671 236 32 68,939
	68,671 236 32 68,939 6,470 - - 6,470 (100) - - (100)
	6,370 - - 6,370 (25) 25 - -
	75,016 261 32 75,309

Notes to the Financial Statements

1 Accounting Policies

These Group and parent company financial statements were prepared in accordance with Financial Reporting Standard 102. The Financial Reporting Standard is applicable in the UK and Republic of Ireland ( “FRS 102” ). The presentation currency of these financial statements is sterling. All amounts in the financial statements have been rounded to the nearest £1,000.

The parent company is included in the consolidated financial statements, and is considered to be a qualifying entity under FRS 102 paragraphs 1.8 to 1.12. The following exemptions available under FRS 102 in respect of certain disclosures for the parent company financial statements have been applied:

No separate parent company Cash Flow Statement with related notes is included.

The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial statements.

Judgements made by the directors, in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed in note 30.

Measurement Convention

The financial statements are prepared on the historical cost basis.

Legal Status

The Company is a company limited by guarantee, and is registered in England under the Companies Act 2006. It is a registered social housing provider and a registered charity.

Basis of Preparation

The consolidated financial statements include the financial statements of the Company and its subsidiary undertakings made up to 31 March 2023. A subsidiary is an entity that is controlled by the parent. The results of subsidiary undertakings are included in the consolidated profit or loss account from the date that control commences until the date that control ceases. Control is established when the Company has the power to govern the operating and financial policies of an entity so as to obtain benefits from its activities. In assessing control, the Group takes into consideration potential voting rights that are currently exercisable.

In the parent financial statements, investments in subsidiaries, jointly controlled entities and associates are carried at cost less impairment. The financial statements have been prepared under the historical cost convention and in accordance with applicable Accounting Standards, the Accounting Direction for Private Registered Providers of Social Housing 2019 and the Statement of Recommended Practice, “Accounting by Registered Social Housing Providers 2018” (SORP 2018) and the Companies Act 2006.

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Company’s financial statements.

Going Concern

The financial statements have been prepared on a going concern basis which the Board consider to be appropriate for the following reasons.

The Group prepares a 30 year business plan which is updated and approved on an annual basis. The most recent business plan was approved in May 2023 by the Board. As well as considering the impact of a number of scenarios on the business plan the Board also adopted a stress testing framework against the base plan. The stress testing impacts were measured against loan covenants and peak borrowing levels compared to agreed facilities, with potential mitigating actions identified to reduce expenditure.

The Board, after reviewing the group and company budgets for 2023/24 and the Group’s medium term financial position as detailed in the 30-year business plan, is of the opinion that, taking account of severe but plausible downsides, the Group and Company have adequate resources to continue in business for the foreseeable future. In order to reach this conclusion, the Board have considered:

The property market – budget and business plan scenarios have taken account of delays in handovers, lower numbers of property sales, reductions in sales values and potential conversion of market sale to social homes;
Maintenance costs – budget and business plan scenarios have been modelled to take account of cost increases and delays in maintenance expenditure, with major works being phased into future years;
Rent and service charge receivable – arrears and bad debts have been increased to allow for customer difficulties in making payments and budget and business plan scenarios to take account of potential future reductions in rents;
Liquidity – available cash and unutilised loan facilities of £52.3 million as at 31 March 2023 which gives significant headroom for committed spend and other forecast cash flows that arise;
The Group’s ability to withstand other adverse scenarios such as higher interest rates increased periods for relets in addition to a higher number of void properties.

The Board believe the Group and Company has sufficient funding in place and expect the Group to be in compliance with its debt covenants even in severe but plausible downside scenarios.

Consequently, the Board are confident that the Group and Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

Consolidation

The consolidated financial statements include the financial statements of the Company and its four subsidiaries Coastline Services Limited; Coastline Care Limited; Coastline Homes Limited and Coastline Design and Build Limited. The acquisition method of accounting has been adopted. Transactions between the Company and its subsidiaries are eliminated on consolidation.

Basic Financial Instruments

Trade and other debtors/ creditors

Trade and other debtors/ creditors are recognised initially at transaction price less attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument.

Interest-bearing borrowings classified as basic financial instruments

Interest-bearing borrowings are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses.

Investments in preference and ordinary shares

Investments in equity instruments are measured initially at fair value, which is normally the transaction price. Transaction costs are excluded if the investments are subsequently measured at fair value through profit or loss. Subsequent to initial recognition investments that can be measured reliably are measured at fair value with changes recognition in profit or loss. Other investments are measured at cost less impairment in profit or loss.

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the Company’s cash management are included as a component of cash and cash equivalents for the purpose only of the cash flow statement.

Turnover

Group and Company turnover comprises rental income receivable net of voids, income from property sales, service charges and other services which are included at the invoiced value of goods and services supplied in the period with grant income recognised under either the performance method or accruals method dependent on the type of grant.

Stock

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

The Company’s stock figure includes the proportion of shared ownership properties intended for first tranche sales, whether these have been completed and are ready for sale or in the course of construction.

Outright sale

Completed properties and properties under construction for open market sales are recognised at the lower of cost and net realisable value.

Interest Payable

Interest payable and similar charges include interest payable on long term borrowings. Borrowing costs that are directly attributable to the acquisition, construction or production of an asset that takes a substantial time to be prepared for use, are capitalised as part of the cost of that asset.

Other Interest Receivable

Other interest receivable and similar income include interest receivable on funds invested.

Interest income and interest payable are recognised in profit or loss as they accrue, using the effective interest method. Gift aid income is recognised in the profit or loss account on the date the entity’s right to receive payments is established.

Retirement Benefits

The Group operates a defined contribution pension scheme through the Social Housing Pension Scheme operated by The Pensions Trust. The assets of the schemes are held separately from those of the Company in an independently administered fund. The amount charged to the profit or loss account represents the contributions payable to the schemes in respect of the accounting period.

The Group also participated in the defined benefit section of the Social Housing Pension Scheme operated by The Pensions Trust providing benefits based on final pensionable pay or on career average salary, although it is closed to future accrual. The assets of the scheme are held separately from those of the Group. For financial years ending on or after 31 March 2019, The Pensions Trust is able to obtain sufficient information to enable the Company to account for the Scheme as a defined benefit scheme.

Housing Properties

Housing properties are principally properties available for rent and are stated at cost less depreciation. Cost includes the cost of acquiring land and buildings, directly attributable development costs, interest at the average cost of borrowing for the development period, and expenditure incurred in respect of improvements which comprise the modernisation and extension of existing properties. Following the adoption of component accounting, completed housing properties are now split between their land and structure costs and a specific set of major components that require periodic replacement.

Depreciation is charged to the profit or loss account on a straight-line basis over the estimated useful lives of each component part of housing properties. Land is not depreciated. The estimated useful lives are as follows:

Structure	80 years
Cladding (as part of the structure)	20 years
Windows and doors	40 years
Roofs	75 years
Kitchens	20 years
Bathrooms	30 years
Lifts (excluding stairs)	15 years
Heating	30 years
Gas boilers/ Heat Pumps	15 years

Properties are reviewed for impairment annually. Where housing properties have suffered a permanent diminution in value, the impairment after deducting any related Social Housing Grant is recognised in the statement of consolidated income and included within cumulative depreciation.

Shared ownership properties are included in housing properties at cost related to the percentage of equity retained, less any provisions needed for impairment or depreciation.

Development costs which arise directly from the construction or acquisition of a property are capitalised to housing properties in the course of construction.

Capital expenditure on schemes which are aborted is charged to the statement of consolidated income in the year in which it is recognised that the schemes will not be developed to completion.

Social Housing Grant

Social housing grant (SHG) is initially recognised at fair value as a long term liability, specifically as deferred grant income and released through the statement of consolidated income as turnover income over the life of the structure of housing properties in accordance with the accrual method applicable to social landlords accounting for housing properties at cost.

On disposal of properties, all associated SHG is transferred to the Recycled Capital Grant Fund (RCGF) until the grant is recycled or repaid to reflect the existing obligation under the social housing grant funding regime.

Where, following the sale of a property, SHG becomes repayable, to the extent it is not subject to abatement, it is included as a liability until it is recycled or repaid. SHG is subordinated in respect of loans by agreement with the Regulator of Social Housing.

Government Grants

These include grants from local authorities and other organisations. Other grants are initially recognised at fair value as a long term liability, specifically as deferred grant income and released through the statement of consolidated income as turnover over the life of the structure of housing properties in accordance with the accrual method applicable to social landlords accounting for housing properties at cost. Grants in respect of revenue expenditure are credited to the statement of consolidated income in the same period as the expenditure to which they relate.

Sale of Housing Properties

Surpluses on sales of housing accommodation comprise proceeds from property sales, which are recognised at the date of completion, less the net book value of the properties and take into account any liabilities under the original Transfer Agreement with Cornwall Council in relation to Right to Buy sales.

Sale of Housing Properties – Shared Ownership

Under shared ownership arrangements, the Company sells an interest of between 25% and 75% in a Low Cost Home Ownership housing property at open market value. The owner of a low cost home has the right to purchase further proportions up to 100% (subject to occasional restrictions) at the then current valuation. Proceeds of sale of first tranches are accounted for as turnover in the statement of consolidated income. Subsequent tranches sold are disclosed in the profit or loss account after the operating result as a surplus or deficit on the sale of fixed assets.

Improvements, Major Repairs, Cyclical Repairs and Day to Day Repairs

The amount of expenditure incurred which relates to an improvement, which is defined as an increase in the net rental stream or the life of a property, has been capitalised. Expenditure incurred on other major repairs, cyclical and day-to-day repairs to housing properties is charged to the statement of consolidated income in the period in which it is incurred.

Other Tangible Fixed Assets

Other tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Where parts of an item of tangible fixed assets have different useful lives, they are accounted for as separate items of tangible fixed assets, for example land is treated separately from buildings.

Other tangible assets include those assets with an individual value in excess of £500 and community alarm equipment, which is specifically associated with an income stream.

Depreciation is provided evenly on the cost of other tangible fixed assets to write them down to their estimated residual values over their expected useful lives. No depreciation is provided on freehold land. The principal annual rates used for other assets are:

Freehold office buildings	50 years
Solar PV panels	20 years
Smoke and carbon monoxide detectors	10 years
Furniture, fixtures and fittings	5 years
Motor vehicles	5 years
Plant and equipment	4 years
Computer hardware	3 years
Community alarm equipment	3 to 10 years
Grounds plant and equipment	3 years

Intangible Fixed Assets

Intangible fixed assets are stated at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is provided evenly on the cost of intangible fixed assets to write them down to their estimated residual values over their expected useful lives. The principal annual rates used for intangible assets are: Computer software 3 years

Operating Leases

Payments (excluding costs for services and insurance) made under operating leases are recognised in the profit or loss account on a straight-line basis over the term of the lease unless the payments to the lessor are structured to increase in line with expected general inflation; in which case the payments related to the structured increases are recognised as incurred. Lease incentives received are recognised in profit or loss over the term of the lease as an integral part of the total lease expense.

Bad and Doubtful Debts

Provision is made against rent arrears of current and former tenants as well as miscellaneous debts to the extent that they are considered irrecoverable. All former tenant arrears are fully provided for in the year that they occur.

Capitalisation of Interest

Interest on loans financing development is capitalised up to the end of the month in which practical completion occurs.

Capitalisation of Development Costs

Development costs which arise directly from the construction or acquisition of a property are capitalised to housing properties in the course of construction.

Capital expenditure on schemes which are aborted is charged to the statement of consolidated income in the year in which it is recognised that the schemes will not be developed to completion.

Taxation

Coastline Housing Limited is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

The profit making companies within the Group (CSL, CCL, CDB and CHM) are liable to UK corporation tax. The credit for taxation for the year includes current tax on the taxable profits for the year for these companies, where the profits are not relieved by losses brought forward.

Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the profit or loss account except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense.

Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the balance sheet date. Deferred tax balances are not discounted.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Value Added Tax

The Company is registered for VAT, but a large proportion of its income, including rents, is exempt for VAT purposes and the majority of its expenditure is subject to VAT which cannot be reclaimed. Expenditure is therefore shown inclusive of VAT. The Company recovers VAT where appropriate and this is credited to the statement of consolidated income account and back against capital expenditure where appropriate.

Gift aid payment presented within shareholders’ funds

Gift Aid payment is only recognised as a liability at the year end to the extent that it has been paid prior to the year end, there is a deed of covenant prior to the year-end or a Companies Act s288 written resolution has been approved by the shareholder in the year to pay the taxable profit for the year to its parent by a certain payment date.

Income statement

Tax charge to be recorded to the extent that a tax charge is payable (i.e. includes any tax credit related to gift aid)

2 Turnover, Operating Costs and Operating Surplus

GROUP Social housing lettings Support contracts Care and support Other activities Shared ownership first tranche sales COMPANY Social housing lettings Support contracts Care and support Other activities Shared ownership first tranche sales	2023 2022 Turnover Cost of sales Operating costs Operating surplus Turnover Cost of sales Operating costs Operating surplus £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 28,652 - (23,503) 5,149 27,209 - (20,978) 6,231 811 - (811) - 680 - (680) - 1,194 - (586) 608 1,136 - (518) 618 887 - (203) 684 2,388 (460) (1,733) 194 5,146 (4,829) (86) 231 7,109 (6,188) (90) 832
	36,690 (4,829) (25,189) 6,672 38,522 (6,648) (23,999) 7,875
	2023 2022 Turnover Cost of sales Operating Costs Operating Surplus Turnover Cost of sales Operating costs Operating surplus £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 28,652 - (23,379) 5,273 27,209 - (20,891) 6,318 811 - (811) - 680 - (680) - 1,194 - (586) 608 1,136 - (518) 618 529 - - 529 208 (460) - (253) 5,146 (4,829) (86) 231 7,109 (6,188) (90) 832
	36,332 (4,829) (24,862) 6,641 36,342 (6,648) (22,179) 7,515

GROUP Income and expenditure Income from lettings Rent receivable Service charges receivable Grant income amortised Total income from lettings Expenditure on letting activities Management Services Routine maintenance Planned maintenance Major repairs expenditure Rent losses from bad debts Depreciation of housing properties Other costs Operating costs on lettings Operating surplus on lettings	General needs Sheltered housing Shared ownership 2023 2022 £’000 £’000 £’000 £’000 £’000 19,910 4,413 1,329 25,652 24,552 1,275 672 - 1,947 1,624 1,053 - - 1,053 1,033
	22,238 5,085 1,329 28,652 27,209
	(3,950) (917) (512) (5,379) (4,870) (1,663) (402) (224) (2,289) (2,232) (1,189) (288) (161) (1,638) (1,624) (5,550) (1,343) (752) (7,645) (6,421) (962) (233) (130) (1,325) (1,374) (264) (64) (36) (364) (159) (3,304) (799) (446) (4,549) (4,243) (228) (55) (31) (314) (55)
	(17,110) (4,101) (2,292) (23,503) (20,978)
	5,128 984 (963) 5,149 6,231

Total income from lettings is shown net of void rents losses:

Rent losses from voids (260) (120) - (380) (459)

COMPANY Income and expenditure Income from lettings Rent receivable Service charges receivable Grant income amortised Total income from lettings Expenditure on letting activities Management Services Routine maintenance Planned maintenance Major repairs expenditure Rent losses from bad debts Depreciation of housing properties Other costs Operating costs on lettings Operating surplus on lettings	General needs Sheltered housing Shared ownership 2023 2022 £’000 £’000 £’000 £’000 £’000 19,910 4,413 1,329 25,652 24,552 1,275 672 - 1,947 1,624 1,053 - - 1,053 1,033
	22,238 5,085 1,329 28,652 27,209
	(3,788) (917) (512) (5,217) (4,705) (1,663) (402) (224) (2,289) (2,232) (1,194) (289) (161) (1,644) (1,637) (5,572) (1,348) (752) (7,672) (6,475) (966) (234) (130) (1,330) (1,385) (264) (64) (36) (364) (159) (3,304) (799) (446) (4,549) (4,243) (228) (55) (31) (314) (55)
	(16,979) (4,108) (2,292) (23,379) (20,891)
	5,259 977 (963) 5,273 6,318

Total income from lettings is shown net of void rents losses:

Rent losses from voids

(260) (120) - (380) (459)

During the year the Company spent £14.781 million (2022: £11.792 million) on maintaining and improving its existing property stock of which £4.125 million (2022: £2.882 million) was capitalised. £nil million grant was received in respect of this expenditure during the year (2022 £nil million).

3 Accommodation in Management

At the end of the year accommodation in management for each class of accommodation was as follows:

GROUP and COMPANY General needs – social rent General needs – affordable rent Supported housing / housing for older people – social rent Supported housing / housing for older people – affordable rent Other social housing Shared ownership Market rented Managed but not owned Leasehold	2023 Properties 2022 Properties 2,252 2,268 1,388 1,194 649 649 121 121 179 279 522 456 2 3 86 89 128 126
	5,327 5,185

4 Surplus for the Financial Year before Taxation

	GROUP	GROUP	COMPANY	COMPANY
This is stated after charging/ (crediting):	2023	2022	2023	2022
	£’000	£’000	£’000	£’000
Depreciation on housing properties	4,549	4,243	4,549	4,243
Depreciation of other tangible fixed assets	655	615	640	596
Amortisation of intangible fixed assets	59	78	59	78
Amortisation of grant income	1,053	1,033	1,053	1,033
Accelerated life on components	229	120	229	120
(Loss)/Gain on disposal of tangible fixed assets	45	(37)	30	(42)
Operating lease rentals:
- vehicles, plant and equipment	23	23	-	-
- land and buildings	36	37	-	-
Auditor’s remuneration:
- audit of these financial statements	24	22	24	22
- audit of the financial statements of subsidiary companies	17	16	-	-
- tax services	8	6	-	-
- other services	-	19	-	19

5 Surplus on Sale of Housing Properties

GROUP and COMPANY Proceeds from sale of housing properties (gross) Less: costs of sales Less: Council share of proceeds under Right to Buy 6 Other Finance Expenditure GROUP and COMPANY Unwinding of discount on the SHPS (note 24) Unwinding of discount on the Coastline Pensioners (note 23) Amortisation of loan note fees Valuation / Searches	2023 £’000 2022 £’000 7,569 8,067 (2,310) (1,588) (225) (367)
	5,034 6,112
	2023 £’000 2022 £’000 330 271 (32) (33) 362 375 - 40
	660 653

7 Interest Payable and Similar Charges

GROUP and COMPANY On loans and bank overdrafts Break costs Interest capitalised on developments under construction	2023 £’000 2022 £’000 7,012 2,657 - 5,314 (2,204) (1,959) 4,808 6,012

The capitalisation rate used to determine the amount of finance costs capitalised in the period was 5.25% to December 2022, then 6.00% from January 2023 (2021: 5.25%).

8 Employees

(a) Number of employees GROUP Average total full-time and part-time employees during the year Average number of full-time equivalents employed during the year COMPANY Average total full-time and part-time employees during the year Average number of full-time equivalents employed during the year (b) Staff Costs for the above employees GROUP Staff costs: - gross wages and salaries - employer National Insurance contributions - employer pension costs COMPANY Staff costs: - gross wages and salaries - employer National Insurance contributions - employer pension costs	2023 Number 2022 Number 339 327 301 289
	2023 Number 2022 Number 220 220 186 186
	2023 £’000 2022 £’000 9,199 8,675 875 673 457 405
	10,531 9,753
	2023 £’000 2022 £’000 6,273 6,085 638 486 343 310
	7,254 6,881

GROUP £150,001 to £160,000 £140,001 to £150,000 £130,001 to £140,000 £120,001 to £130,000 £110,001 to £120,000 £100,001 to £110,000 £90,001 to £100,000 £80,001 to £90,000 £70,001 to £80,000 £60,001 to £70,000 COMPANY £150,001 to £160,000 £140,001 to £150,000 £130,001 to £140,000 £120,001 to £130,000 £110,001 to £120,000 £100,001 to £110,000 £90,001 to £100,000 £80,001 to £90,000 £70,001 to £80,000 £60,001 to £70,000	2023 No. 2022 No. 1 - 1 2 - 1 - - 3 - - - 1 3 1 5 5 1 1
	2023 No. 2022 No. 1 - 1 2 - 1 - - 3 - - - 1 2 1 5 4 1 1

GROUP
£150,001 to £160,000
£140,001 to £150,000
£130,001 to £140,000
£120,001 to £130,000
£110,001 to £120,000
£100,001 to £110,000
£90,001 to £100,000
£80,001 to £90,000
£70,001 to £80,000
£60,001 to £70,000
COMPANY
£150,001 to £160,000
£140,001 to £150,000
£130,001 to £140,000
£120,001 to £130,000
£110,001 to £120,000
£100,001 to £110,000
£90,001 to £100,000
£80,001 to £90,000
£70,001 to £80,000
£60,001 to £70,000

2023
No.
2022
No.
1
-
1
2
-
1
-
-
3
-
-
-
1
3
1
5
5
1
1

2023
No.
2022
No.
1
-
1
2
-
1
-
-
3
-
-
-
1
2
1
5
4
1
1

This includes the remuneration of Executive Officers, which is also disclosed in note 9.

9 Board Members’ and Executive Officers’ Emoluments

Key management personnel are the Executive Team who oversee the day-to-day operational running and, working with the Board and wider colleagues, identify and execute the Group’s strategic direction. They are detailed on page 2 of these accounts.

The remuneration paid to the Executive Officers of the Group and the Board members during the year was as follows:

EXECUTIVE OFFICERS Chief Executive A Young Deputy Chief Executive (with specific responsibility for Housing, Assets and Communities) L Beard Director of Finance, People and Change N Mallows Director of Development and Commercial Services, C Weston Director of HR and Governance D Wingham TOTAL – COMPANY and GROUP	Salary £ Other emoluments £ Pension £ 2023 Total £ 2022 Total £ 128,900 16,686 10,699 156,285 152,809 107,739 14,382 8,942 131,063 128,132 106,999 14,455 8,881 130,335 122,450 100,850 12,695 8,371 121,916 119,202 - - - - 97,912
	444,488 58,218 36,893 539,599 620,505

NON - EXECUTIVE DIRECTORS M Duddridge (Chair) S Harrison (Interim Chair) A Moore K Harris C Pears B Treleaven D Barlow K Kemp P Doddrell P Stephens P Bearne S Roberts J Waldron TOTAL – COMPANY AND GROUP INDEPENDENT COMMITTEE MEMBERS M Tucker E Chapman J De-Ville S Curtis C Jones M Gaunt K Kemp L Denmead TOTAL – COMPANY AND GROUP	2023 £ 2022 £ 13,000 11,700 7,800 7,800 7,800 5,250 6,100 5,250 5,250 5,250 5,250 1,313 5,250 1,313 5,250 1,313 5,250 - - 7,150 - 7,800 - 5,250 - 7,800
	63,450 67,814
	2023 £ 2022 £ 2,500 625 2,500 2,000 1,250 2,000 2,500 - 1,460 2,500 167 - 1,500 - 833
	10,210 6,500

Expenses paid during the year to Board Members amounted to £3,477 (2022: £3,790).

No Non-Executive Directors participate in any of the four Group pension schemes. At the year-end four Executive Officers were members of one of the schemes (2022: four). At the year-end £nil of pension scheme contributions relating to Executive Officers remained unpaid (2022: Nil). One of the Executive

Officers; Allister Young, was a statutory director in the year. In respect of the officer who held the Chief Executive’s position during the year, pension arrangements were:

(a) As an ordinary member of the Social Housing Defined Contribution Pension Scheme.
(b) No enhancement or special terms were applied.
(c) No individual pension arrangement to which the Group makes a contribution.

10 Trusts

The Company is Sole Corporate Trustee of Garlidna (Penzance Almshouses) Trust, a registered charity. The income and expenditure of the Trust and its assets and liabilities, are incorporated within the Company and Group’s financial statements. A transfer between reserves is performed annually for the deficit or surplus of income over expenditure. This transfer is included within the statement of changes in equity.

11 Intangible Fixed Assets

GROUP and COMPANY

Cost At 1 April 2022 Additions Disposals At 31 March 2023 Depreciation At 1 April 2022 Charged in year Disposals At 31 March 2023 Net book value At 31 March 2023 At 31 March 2022	Group £’000 Company £’000 Computer Software Computer Software 1,703 1,653 83 83 - -
	1,786 1,736
	(1,375) (1,325) (59) (59) - -
	(1,434) (1,384)
	352 352
	328 328

12 Tangible Fixed Assets – Housing Properties

Freehold Properties Completed Under Construction £’000 £’000 236,268 49,615 7,746 6,945 9,553 (9,553) 4,125 - (1,631) -	Shared Ownership Properties Completed Under Construction £’000 £’000 30,732 15,056 5,587 3,806 3,472 (3,472) - - (332) -	Shared Ownership Properties Completed Under Construction £’000 £’000 30,732 15,056 5,587 3,806 3,472 (3,472) - - (332) -	Garlidna Alms Total £’000 £’000 368 332,039 13 24,097 - - - 4,125 - (1,963)
256,061 47,007	39,459	15,390	381 358,298
(34,064) - (4,158) - 567 -	(1,566) (388) 37	- - -	(76) (35,706) (3) (4,549) - 604
(37,655) -	(1,917)	-	(79) (39,651)

218,406 47,007	37,542	15,390	302 318,647
202,204 49,615	29,166	15,056	292 296,333

Company

Company
Cost As at 1 April 2022 Additions Schemes completed Components Capitalised Disposals At 31 March 2023 Depreciation As at 1 April 2022 Charge for the year Eliminated on Disposals At 31 March 2023 Net Book Value At 31 March 2023 At 31 March 2022	Freehold Properties Completed Under Construction £’000 £’000 236,284 50,115 7,755 7,020 9,553 (9,553) 4,125 - (1,631) -	Shared Ownership Properties Completed Under Construction £’000 £’000 30,826 15,458 5,590 3,855 3,472 (3,472) - - (332) -		Garlidna Alms Total £’000 £’000 368 333,051 13 24,233 - - - 4,125 - (1,963)
	256,086 47,582	39,556	15,841	381 359,446
	(34,064) - (4,158) - 567 -	(1,566) (388) 37	- - -	(76) (35,706) (3) (4,549) - 604
	(37,655) -	(1,917)	-	(79) (39,651)

	218,431 47,582	37,639	15,841	302 319,795
	202,220 50,115	29,260	15,458	292 297,345

Included in the cost of housing properties is £5.600 million in respect of cumulative capitalised development administration costs (2022: £4.859 million) and cumulative capitalised interest of £11.683 million (2022: £9.479 million).

All housing properties are freehold. See note 3 for accommodation in management.

Valuation for disclosure only

The value of completed housing properties as at 31 March 2023 on an existing use value, Social Housing (EUV-SH) basis was £220.1 million (2022: £198.5 million).

For information purposes only, completed housing properties are valued at 31 March 2023 by Savills (UK) Limited, qualified professional independent external valuers.

The valuation of the properties was undertaken in accordance with the Appraisal and Valuation Manual of the Royal Institution of Chartered Surveyors.

In valuing housing properties, discounted cash flow methodology was adopted with key assumptions:

Social housing and shared ownership only

Discount rate 5.50% for main rented stock and 5.75% for sheltered and supported stock.

Rent assumptions: Social rented CPI +1.0% thereafter, Shared ownership RPI +0.5% and Other rents RPI +1.0% or in accordance with any relevant lease or nominations agreements

13 Tangible Fixed Assets – Other

Freehold offices Furniture, fixtures and fittings £’000 £’000 3,638 1,778 379 42 - -	Computer hardware £’000 1,192 191 -	Plant, equipment and vehicles £’000 1,611 495 (121)	Community alarm equipment Total £’000 £’000 163 8,382 117 1,224 - (121)
4,017 1,820	1,383	1,985	280 9,485
(635) (1,256) (62) (113) - -	(985) (156) -	(809) (306) 121	(48) (3,733) (17) (654) - 121
(697) (1,369)	(1,141)	(994)	(65) (4,266)
3,320 451	242	991	215 5,219
3,003 522	207	802	115 4,649

COMPANY

Freehold offices Furniture , fixtures and fittings £’000 £’000 3,638 1,773 379 42 - -	Computers hardware £’000 1,192 191 -	Plant, equipment and vehicles £’000 1,160 487 -	Community alarm equipment Total £’000 £’000 163 7,926 117 1,216 - -
4,017 1,815	1,383	1,647	280 9,142
(635) (1,251) (62) (113) - -	(985) (156) -	(385) (292) -	(48) (3,304) (17) (640) - -
(697) (1,364)	(1,141)	(677)	(65) (3,944)
3,320 451	242	970	215 5,198
3,003 522	207	775	115 4,622

14 Investments

Ordinary shares of £1 each – Coastline Services Limited Ordinary shares £1 each – Coastline Design and Build Limited Ordinary shares £1 each – Coastline Care Limited Ordinary shares £1 each – Coastline Homes Limited	GROUP 2023 £ 2022 £ - - - - - - - - - -	COMPANY 2023 £ 2022 £ 75,000 75,000 1 1 1 1 100 100
		75,102 75,102

The Company holds 100% of the share capital of Coastline Services Limited. Coastline Services Limited is a company incorporated in England and Wales (Company number 05558027). The principal activity of the company is the provision of maintenance and technical services, primarily in respect of affordable housing. Coastline Services Limited has agreements with Coastline Housing Limited for the provision of responsive and void maintenance as well as various planned investment works to existing properties. The accounts of Coastline Services Limited are available to the public and may be obtained from its registered office at Coastline House, 4 Barncoose Gateway Park, Pool, Redruth, Cornwall TR15 3RQ.

The Company holds 100% of the share capital in Coastline Design and Build Limited, which was incorporated on the 3 June 2015. Coastline Design and Build Limited is a company incorporated in England and Wales (Company number 09622238). The principal activities of the company are that of a commercial design and build contractor for new builds whose principal client is CHL. The accounts of Coastline Design and Build Limited are available to the public and may be obtained from its registered office at Coastline House, 4 Barncoose Gateway Park, Pool, Redruth, Cornwall TR15 3RQ.

The Company holds 100% of the share capital in Coastline Care Limited. Coastline Care Limited is a company incorporated in England and Wales (Company number 06665734). The company has been dormant since 1 April 2015. The accounts of Coastline Care Limited are available to the public and may be obtained from its registered office at Coastline House, 4 Barncoose Gateway Park, Pool, Redruth, Cornwall TR15 3RQ.

The Company holds 100% of the share capital of Coastline Homes Limited. Coastline Homes Limited is a company incorporated in England and Wales (Company number 10957677). The principal activities of the company is the design, construction and sale of residential housing. The accounts of Coastline Homes Limited are available to the public and may be obtained from its registered office at Coastline House, 4 Barncoose Gateway Park, Pool, Redruth, Cornwall TR15 3RQ.

15 Debtors

Due within one year: Current tenants Former tenants Less provision for bad and doubtful debts Total rent and service charges receivable Trade debtors Taxation and social security Other debtors Less provision for bad and doubtful debts Prepayments and accrued income	GROUP 2023 £’000 2022 £’000 409 437 334 356 (579) (473) 164 320 73 40 8 14 1,578 1,788 (406) (282) 747 1,311 2,164 3,191	COMPANY 2023 £’000 2022 £’000 409 437 334 356 (579) (473)
		164 320 - - 3 8 1,578 1,571 (406) (282) 738 1,287
		2,077 2,904

16 Stock

16 Stock
Shared ownership first tranches - Completed - Work in progress Outright sale properties - Completed - Work in progress Work in progress	GROUP 2023 £’000 2022 £’000 2,182 809 4,476 5,539 5,852 8,768 7,995 - 368 637 20,873 15,753	COMPANY 2023 £’000 2022 £’000 2,182 809 4,476 5,539 5,852 8,768 7,995 - - -
		20,505 15,116

17 Cash and Cash Equivalents

Cash at bank and in hand Cash and cash equivalents per cash flow statement	GROUP 2023 £’000 2022 £’000 61,546 6,196 61,546 6,196	COMPANY 2023 £’000 2022 £’000 60,695 5,270
		60,695 5,270

There were no significant non-cash transactions in the year. There are no restrictions on cash and cash equivalents held.

18 Creditors: amounts falling due within one year

Trade creditors Rent, service and other charges received in advance Taxation and social security Accruals and deferred income Other creditors Amounts due to subsidiary undertakings	GROUP 2023 £’000 2022 £’000 1,964 2,415 931 868 186 180 11,206 5,075 1,679 1,439 - - 15,966 9,977	COMPANY
		2023 £’000 2022 £’000

		1,218 810
		931 868
		186 171
		5,707 2,737
		1,679 1,440
		5,600 2,767
		15,321 8,793

Amounts due to subsidiary undertakings are trading balances repayable on demand and non-interest bearing.

19 Creditors: amounts falling due after more than one year

GROUP and COMPANY

Bank loans Bond Premium Private placement Arrangement fees capitalised Deferred Capital Grant Recycled Capital Grant Fund	2023 £’000 2022 £’000 203,240 151,187 35 38
	32,500 32,500
	(2,068) (1,990)
	233,707 181,735
	82,649 64,636
	306 193
	316,662 246,564

Total additional fees of £442,000 incurred in respect of new loan facilities (2022: £361,000) were capitalised during the year. During the year £364,000 (2022: £377,000) of capitalised fees were amortised

The balance on Deferred Capital Grant shown above is net of amortised grant already released to the Statement of Comprehensive Income. Total Capital Grant received is £90.5 million (2022: £71.4 million).

Deferred Capital Grant Fund

eferred Capital Grant Fund
Opening balance 1 April Received in the year Released to income in the year Closing balance 31 March To be released within one year To be released in more than one year	2023 £’000 2022 £’000 64,636 61,980 19,066 3,689 (1,053) (1,033)
	82,649 64,636
	2023 £’000 2022 £’000 1,276 1,053 81,373 63,583
	82,649 64,636

Recycled Capital Grant Fund

ecycled Capital Grant Fund
Opening balance 1 April Arising in the year Applied to development schemes Closing balance 31 March	2023 £’000 2022 £’000 193 93 113 193 - (93)
	306 193

20 Debt Analysis

Debt is repayable as follows GROUP and COMPANY

Less than one year Between two and five years After five years	2023 £’000 2022 £’000 - - 89,553 46,827 146,187 136,860
	235,740 183,687

Borrowing Facilities

The Group and Company has undrawn committed borrowing facilities. Undrawn facilities available at 31 March 2023 were as follows:

GROUP and COMPANY

Expiring in less than two years Expiring between two and five years Expiring in more than five years	2023 £’000 2022 £’000 - - 51,032 62,032 - -
	51,032 62,032

The main bank loans are secured by fixed charges upon a defined subset of the Company’s lettable properties.

Financial Liabilities

The interest rate profile of the Group and Company’s financial liabilities as at 31 March 2023 was:

GROUP and COMPANY

Floating rate Fixed rate	2023 £’000 2022 £’000 40,104 71,027 195,636 112,660
	235,740 183,687

The weighted average period for which interest rates were fixed was 10 years (2022: 3 years), and the weighted average fixed interest rate was 3.57% (2022: 3.62%) including margins.

The fixed rate loans are for terms maturing between four years and 29 years at interest rates ranging from 1.00% to 6.98% including margins.

21 Non-equity Share Capital

The Company is limited by guarantee.

22 Financial Commitments

Capital expenditure commitments are as follows: GROUP and COMPANY Expenditure contracted for but not provided in the accounts Expenditure authorised by the Board but not contracted	2023 £’000 2022 £’000 55,500 25,548
	20,294 56,269

Of the £68.8 million of capital commitments at 31 March 2023, £14.0 million (2022: £21.4 million) will be funded by grant and other public finance. The remainder will be fully funded through existing loan facilities and cash balances. All contracted expenditure can be met within existing funding arrangements.

Operating Leases

At 31 March 2023 Group and Company future minimum lease payments payable under non-cancellable operating leases are as follows:

Land and buildings, leases expiring Within one year In two to five years Vehicles, plant and equipment, leases expiring Within one year In two to five years	GROUP 2023 £’000 2022 £’000 - - 78 115 78 115 - - 55 66 55 66	COMPANY 2023 £’000 2022 £’000 - - - -
		- -
		- - - -
		- -

23 Pension Liabilities

GROUP and COMPANY Social Housing Pension Scheme (SHPS) Coastline Pensioners	2023 £’000 2022 £’000 1,310 1,226 95 138
	1,405 1,364

The ‘Coastline Pensioners’ are historic retirees who by virtue of agreements following restructuring post stock transfer in 1998, are paid an inflating pension until they die. These pensions are increased annually in accordance with local government pension scheme rules. Payments during the year to these pensioners were £11,000 (2022: £13,000). The carrying value of the liability of £95,000 (2022: £138,000) represents the discounted value of expected future payments discounted at 4.83% (2022: 2.77%).

24 Pensions

The Group participated in one pension scheme:

(1) Social Housing Pension Scheme (SHPS): Defined Benefit Pension Scheme

The Group participates in the Social Housing Pension Scheme (the 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 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 last completed triennial valuation of the scheme for funding purposes was carried out as at 30 September 2020. This valuation revealed a deficit of £1,560m. A Recovery Plan has been put in place with the aim of removing this deficit by 31 March 2028.

The Scheme is classified as a 'last-man standing arrangement'. Therefore the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the Scheme. Participating employers are legally required to meet their share of the Scheme deficit on an annuity purchase basis on withdrawal from the Scheme.

For financial years ending on or before 28 February 2019, it was not possible for the company to obtain sufficient information to enable it to account for the Scheme as a defined benefit scheme, therefore the company has accounted for the Scheme as a defined contribution scheme.

For financial years ending on or after 31 March 2019, it is possible to obtain sufficient information to enable the company to account for the Scheme as a defined benefit scheme.

For accounting purposes, a valuation of the scheme is carried out with an effective date of 30 September each year. The liability figures from this valuation are rolled forward for accounting yearends from the following 31 March to 28 February inclusive.

The latest accounting valuation was carried out with an effective date of 30 September 2021. The liability figures from this valuation were rolled forward for accounting year-ends from the following 31 March 2022 to 28 February 2023 inclusive. The liabilities are compared, at the relevant accounting date, with the company’s fair share of the Scheme’s total assets to calculate the company’s net deficit or surplus.

Coastline was notified in 2021 by the Trustee of the Scheme that it has performed a review of the changes made to the Scheme’s benefits over the years and the result is that there is uncertainty surrounding some of these changes. The Trustee is seeking clarification from the Court on these items, and this process is ongoing with it being unlikely to be resolved before the end of 2024 at the earliest. It is estimated that this could potentially increase the value of the full Scheme liabilities by £155m. We note that this estimate has been calculated as at 30 September 2022 on the Scheme’s Technical Provisions basis. Until the Court direction is received, it is unknown whether the full (or any) increase in liabilities will apply and therefore, in line with the prior year, no adjustment has been made in these financial statements in respect of this.” For clarity, the estimate provided by the Trustee includes the full potential impact should a negative outcome be received on all past service elements being considered by the Court. We note also that the Trustee does not have the estimate calculated as at 31 March 2023 or on an accounting (FRS 102) basis

a) Main actuarial assumptions used for the purposes of FRS 102:

	31 March 2023	31 March 2022
	% per annum	% per annum
Discount Rate	4.83%	2.77%
Inflation (RPI)	3.16%	3.42%
Inflation (CPI)	2.82%	3.12%
Salary Growth	3.82%	4.12%
Allowance for commutation of pension for cash	75% of maximum	75% of maximum
at retirement	allowance	allowance

The mortality assumptions adopted at 31 March 2023 imply the following life expectancies:

		Life expectancy	Life expectancy at
		at age 65	age 65
		(Years)	(Years)
		31 March 2023	31 March 2022
Male retiring in 2023 (2022: 2022)		21.1	21.1
Female retiring in 2023 (2022: 2022)		23.4	23.7
Male retiring in 2043 (2022: 2042)		22.2	22.4
Female retiring in 2043 (2022: 2042)		24.6	25.2
b)	Scheme assets:
		31 March 2023	31 March 2022
		£’000	£’000
	Global Equity	119	2,072
	Absolute Return	69	433
	Distressed Opportunities	193	386
	Credit Relative Value	240	359
	Alternative Risk Premia	12	356
	Fund of Hedge Funds	-	-
	Emerging Markets Debt	34	314
	Risk Sharing	468	356
	Insurance-Linked Securities	161	252
	Property	274	292
	Infrastructure	727	769
	Private Debt	283	277
	Opportunistic Illiquid Credit	272	363
	High Yield	22	93

Opportunistic Credit	-	38
Cash	46	37
Corporate Bond Fund	-	720
Liquid Credit	-	-
Long Lease Property	192	278
Secured Income	292	402
Liability Driven Investment	2,930	3,013
Currency Hedging	12	(42)
Net Current Assets	16	30
Total assets	6,362	10,798

None of the fair values of the assets shown above include any direct investments in the employer’s own financial instruments or any property occupied by, or other assets used by, the employer.

c) The following amounts were measured in accordance with the requirements of FRS 102:

Present values of defined benefit obligation, fair value of assets and defined benefit asset (liability):

	31 March 2023	31 March 2022
	£’000	£’000
Fair value of plan assets	6,362	10,798
Present value of defined benefit obligation	7,672	12,024
Surplus (deficit) in plan	(1,310)	(1,226)
Unrecognised surplus	-	-
Defined benefit asset (liability) to be recognised	(1,310)	(1,226)

d) Analysis of amount charged to operating profit in the period:

Defined benefit costs recognised in statement of comprehensive income (SOCI):

(SOCI):
		Period from	Period from
		31 March 2022 to	31 March 2021 to
		31 March 2023	31 March 2022
		£’000	£’000
Current service cost		-	-
Expenses		11	11
Net interest expense		29	68
Losses (gains) on business combinations		-	-
Losses (gains) on settlements		-	-
Losses (gains) on curtailments		-	-
Losses (gains) due to benefit changes		-	-
Defined benefit costs recognised in comprehensive income (SoCI)	statement of	40	79

Defined benefit costs recognised in other comprehensive income:

		Period ended	Period ended
		31 March 2023	31 March 2022
		£’000	£’000
Experience on plan assets (excluding amounts included in net interest cost) - gain (loss)		(4,894)	1,357
Experience gains and losses arising liabilities - gain (loss)	on the plan	10	(890)
Effects of changes in the demographic	assumptions
underlying the present value of the defined benefit		15	174
obligation - gain (loss)
Effects of changes in the financial	assumptions
underlying the present value of the defined benefit		4,475	1,139
obligation - gain (loss)
Total actuarial gains and losses (before restriction
due to some of the surplus not being recognisable) -		(394)	1,780
gain (loss)
Effects of changes in the amount of surplus that is not
recoverable (excluding amounts included in net		-	-
interest cost) - gain (loss)
Total amount recognised in other comprehensive income - gain (loss)		(394)	1,780

e) Movement in deficit during the period:

Reconciliation of opening and closing balances of the defined benefit obligation:

	Period ended Period ended
	31 March 2023 31 March 2022
	£’000 £’000
Defined benefit obligation at start of period	12,024 12,248
Current service cost	- -
Expenses	11 11
Interest expense	330 271
Contributions by plan participants	- -
Actuarial losses (gains) due to scheme experience	(10) 890
Actuarial losses (gains) due to changes in demographic assumptions	(15) (174)
Actuarial losses (gains) due to changes in financial assumptions	(4,475) (1,139)
Benefits paid and expenses	(193) (83)
Liabilities acquired in a business combination	- -
Liabilities extinguished on settlements	- -
Losses (gains) on curtailments	- -
Losses (gains) due to benefit changes	- -
Exchange rate changes	- -
Defined benefit obligation at end of period	7,672 12,024

Reconciliation of opening and closing balances of the fair value of plan assets:

	Period ended	Period ended
	31 March 2023	31 March 2022
	£’000	£’000
Fair value of plan assets at start of period	10,798	9,052
Interest income	301	203
Experience on plan assets (excluding amounts included in interest income) - gain (loss)	(4,894)	1,357
Contributions by the employer	350	269
Contributions by plan participants	-	-
Benefits paid and expenses	(193)	(83)
Assets acquired in a business combination	-	-
Assets distributed on settlements	-	-
Exchange rate changes	-	-
Fair value of plan assets at end of period	6,362	10,798

The actual return on the plan assets (including any changes in share of assets) over the period ended 31 March 2023 was (£4,593,000) (2022: £1,560,000)

25 Related Parties

Non-Executive Directors

One Non-Executive Director who served during the year (2022: one) has a standard tenancy agreement and is required to fulfil the same obligations and receive the same benefit as other Customers. There are no rental arrears to report as at year-end (2022: £nil).

Subsidiary companies

Coastline Housing (CHL) has subsidiaries which are not regulated by the Regulator of Social Housing: Coastline Services Limited (CSL); Coastline Care Limited (CCL); Coastline Design and Build Limited (CDB); and Coastline Homes Limited (CHM) (see note 28).

CSL’s main business is the provision of building, maintenance and technical management services, which includes property and grounds maintenance work undertaken for CHL. The total value of work undertaken by CSL on behalf of CHL during the year was £7,217,365 (2022: £5,992,977). This is removed on consolidation in the Group financial statements. The total balance due to CSL from CHL at 31 March 2023 was £119,176 (2021: £103,478).

CCL was Dormant throughout the period to 31 March 2023 (2022: Dormant).

CDB’s main business is that of a commercial design and build contractor for new builds whose principal client is CHL. The total value of work undertaken by CDB on behalf of CHL during the year was £26,343,076 (2022: £24,271,151). This is removed on consolidation in the Group financial statements. The total balance due to CHL from CDB at 31 March 2023 was £345 (2022: £nil).

CHM’s main business is the delivery of a wider range of housing options including an element of open market housing for sale where it forms part of wider development schemes that the Group is undertaking. The company commenced trading during the year ended 31 March 2019.

Coastline Housing provides certain administrative functions for the other Group companies, including financial, human resources and IT. These are recharged on the most appropriate basis, either on head count or on floor area of office space occupied.

All transactions with Group companies are on an arm’s-length basis and on commercial terms.

26 Tax on Surplus on Ordinary Activities

Total tax expense recognised in the statement of comprehensive income, other comprehensive income and equity:

Current tax: UK Corporation tax on profits for the year at 19% (2021: 19%) Adjustments in respect of previous periods Deferred tax: Origination and reversal of timing differences Adjustments in prior periods Effect of tax rate change on opening balance Tax on profit of ordinary activities	GROUP 2023 £’000 2022 £’000 - - - - - - - - - - - - - - - -	COMPANY 2023 £’000 2022 £’000 - - - -
		- - - - - - - -
		- -
		- -

A UK corporation tax rate of 19% (effective 1 April 2020) was substantively enacted on 17 March 2020, reversing the previously enacted reduction in the rate from 19% to 17%.

This will increase the company’s future tax charge accordingly. Deferred tax has been calculated at 19% (2022: 19%).

Factors affecting the tax charge for the current year:

The current tax of £nil (2022: £nil) for the year is lower (2022: lower) than the standard rate of corporation tax in the UK of 19% (2022: 19%). The differences are explained below:

Current tax reconciliation Profit on ordinary activities before gift aid and taxation Current tax at 19% (2021: 19%) Income not taxable in determining taxable surplus Effect of gift aid Effect of tax change in previous period Deferred tax not recognised Effect of deferred tax in previous periods Effect of tax rate on opening deferred tax balance Losses carried forward Total current tax (credit) / charge (see above)	GROUP 2023 £’000 2022 £’000 6,323 7,374 1,201 1,401 (1,167) (1,307) (34) (94) - - - - - - - - - -	COMPANY 2023 £’000 2022 £’000 - -
		- - - - - - - - - - - - - -
	- -	- -

27 Provision for Liabilities

Deferred tax

eferred tax
At 1 April (Released)/ charged in the year Change in underlying rate of tax At 31 March Comprising: Accelerated capital allowances	GROUP 2023 £’000 2022 £’000 - - - - - -
	- -
	- -

The deferred tax liability at 31 March 2023 has been calculated based on the rate of 19%.

28 Group Members

Coastline Housing Limited is the parent undertaking and has four subsidiaries being Coastline Services Limited; Coastline Care Limited; Coastline Design and Build Limited; and Coastline Homes Limited (see note 14).

29 Legislative Provision

The Company is a company limited by guarantee and is registered with the Regulator of Social Housing under the Housing and Regeneration Act 2008. The registered provider number for Coastline Housing Limited is LH4165.

The Company is also a registered charity (registration charity no. 1066916).

30 Accounting Estimates and Judgements

Key sources of estimation uncertainty

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives of the assets so these are re-assessed annually and amended when necessary to reflect current estimates. See note 13 for the carrying amount of the property plant and equipment, and note 1 for the useful economic lives for each class of assets.

Impairment of debtors

The Group makes an estimate for the recoverable value of rental arrears, trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 15 for the net carrying amount of the debtors and associated impairment provision.

Pensions

FRS 102 requires that certain assumptions are made in order to determine the amount to be recorded for retirement benefit obligations and pension plan assets, in particular for defined benefit plans. These are mainly actuarial assumptions such as expected inflation rates, employee turnover, expected return on plan assets and discount rates. Substantial changes in the assumed development of any one of these variables may significantly change the Group’s retirement benefit obligation and pension assets.

The impact of Covid-19 on Coastline’s (closed to further accrual) defined benefit pension scheme assets and liabilities has been reflected in the accounts based on the triennial (2020) valuation results updated to current year’s actuarial assumptions

Valuation of housing properties

The Group tests annually whether there are any impairment triggers that would require the Group to undertake a full impairment review of housing properties under FRS 102. In July 2015 the Government announced a 1% reduction for the next four years of rental income for social housing properties effective from 1 April 2016. This announcement was identified as an impairment trigger and accordingly a full impairment review was undertaken at the March 2016 year end.

There have been no such impairment triggers during the year ended 31 March 2023.

The recoverable value is assessed as the higher of fair value or value in use. The SORP considers depreciated replacement cost as a reasonable estimate for value in use taking into consideration the service potential of social housing. The valuation of housing properties at the year-end have therefore been assessed using depreciated replacement cost. These calculations require the use of assumptions and estimates, in particular in relation to the identification of cash generating units, expected replacement cost and the service potential of the asset.

Recoverability of stock and WIP

Completed properties and properties under construction for open market sales are recognised at the lower of cost and net realisable value. Assessing net realisable value requires the use of estimation techniques. In making this assessment, management considers publicly available information and internal forecasts on future sales activity. Net realisable value is based on estimated sales price after allowing for all further costs of completion and disposal.

Critical accounting judgements in applying the Group’s accounting policies

There are no such judgements in either the current or prior year.