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2024-03-31-accounts

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Coastline Housing Limited Coastline Housing Limited Financial Statements Consolidated Financial Statements For the year ended 31 March 2007 For the year ended 31 March 2024

Registered Number 3284666

Registered Number 03284666

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

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Contents

ontents
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 36
Group and Company Statement of Financial Position 37
Group Statement of Cash Flows 38
Group and Company Statement of Changes in Equity 40
Notes to the Financial Statements 41

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Group Information

BOARD MEMBERS AND SENIOR STAFF

Board & Committee membership during 2023/24 Board & Committee membership during 2023/24 Board & Committee membership during 2023/24 Board & Committee membership during 2023/24 Board & Committee membership during 2023/24 Board & Committee membership during 2023/24 Board & Committee membership during 2023/24 Board & Committee membership during 2023/24 Board & Committee membership during 2023/24
The Board Role From To Group CDB CCL CHM CSL ARAC PIC PC CEC Meeting Attendance(inc. Committees)
Max No No Attended %
M Duddridge Chair 01 July2021 17 May2023 Y Y Y Y Y Y 3 3 100%
S Harrison DeputyChair 27 September 2018 24 May2023 Y Y Y Y Y Y Y Y 15 13 87%
Chair 25 May2023
A Young Chief Executive 09 October 2014 Y Y Y Y Y Y 16 16 100%
A Moore Non-Executive Director 01 September 2020 24 May2023 Y Y Y Y Y Y 14 14 100%
Vice Chair 25 May2023 08 November 2023
24 January2024
Interim Chair 09 November 2023 23 January2024
K Kemp Non-Executive Director 01 January2022 Y Y Y 13 12 92%
C Pears Non-Executive Director 01 March 2021 Y Y Y Y Y 18 18 100%
K Harris Non-Executive Director 01 September 2020 08 November 2023 Y Y Y Y 17 17 100%
24 January2024
Interim Vice Chair 09 November 2023 23 January2024
B Treleaven Non-Executive Director 01 January2022 Y Y Y Y 15 12 80%
P Doddrell Non-Executive Director 01 April 2022 Y Y Y Y 18 14 78%
G Pipkin Co-opted Non-Executive Director 01 January2024 Y Y 4 4 100%
D Barlow Non-Executive Director 01 January2022 Y Y Y Y 18 16 89%
M Tucker Independent Committee Member 01 January2022 31 December 2023 Y Y Y 8 7 88%
Co-opted Non-Executive Director 01 January2024
E Chapman Independent Committee Member 01 February2021 Y 4 2 50%
C Jones Independent Committee Member 01 September 2022 Y 4 4 100%
M Gaunt Independent Committee Member 01 March 2022 Y 4 4 100%
S Curtis Independent Committee Member 01 September 2021 Y 4 4 100%
D Willcocks Independent Committee Member 01 January2024 Y 1 1 100%
K Surgenor Independent Committee Member 01 January2024 Y 1 1 100%

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

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CORPORATE INFORMATION

Advisors Advisors
Principal Solicitors Trowers and Hamlins,The Senate,SouthernhayGardens,Exeter EX1 1UG
Stephens and Scown,OspreyHouse,Malpas Road,Truro,Cornwall TR1 1UT
Funders Santander,2 Triton Square,Regent’s Place,London NW1 3AN
M&G Investments,Laurence PountneyHill,London,EC4R 0HH
Scottish Widows,Level5C, 69MorrisonStreet,Edinburgh,EH3 8YF
Affordable HousingFinance,3rd Floor,17 St. Swithin’s Lane,London EC4N 8AL
NatWestplc,9th Floor,250 Bishopsgate,London EC2M 4RB
Saltaire Financeplc,1 Bartholomew Lane,London EC2N 2AX
Homes England,50 Victoria Street,Westminster,London SW1H 0TL
Lloyds Bankplc,10 Gresham Street,London,EC2V 7AE
Bankers NatWestplc,4 Commercial Square Camborne TR14 8EB
External Auditors PKF Francis Clark,Lowin House,Tregolls Road,Truro,TR1 2NA
Internal Auditors BishopFleming,ChyNyverow,Newham Road,Truro TR1 2DP

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’):

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.

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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.

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Chair’s and Chief Executive’s Report

This year has been a productive and successful one for Coastline. Although our operating environment has remained challenging in many ways, we have seen some pleasing results and some great achievements across the year.

We have seen additional legal and regulatory requirements introduced across the sector and it has been a key point of focus for us to make sure we were prepared for these. We maintained our ‘G1’ governance rating and were ready for the new approach to consumer regulations introduced from 1 April 2024. We also put a large amount of work into ensuring we were on top of other aspects of the Social Housing Regulation Act, such as the newly introduced Awaab’s Law.

The introduction of this law meant a renewed focus on damp and mould for the sector as a whole and, here at Coastline, we worked hard to raise awareness among customers of the importance of reporting any suspected damp and mould issues as soon as possible. We also worked with customers to improve communications around this issue and created our own in-house team specifically to focus on damp and mould issues.

The results from the first year of our Tenant Satisfaction Measures customer survey, that we undertook in Summer 2023, are set out in this report. We are pleased with a very strong set of results, with customer satisfaction scores well above average (often in the top quartile), and 100% compliance against the landlord health and safety measures. Of course, the important thing is to use the feedback from customers as a chance to learn, so we have plans in place to look at where we can improve further, and have ambitions to see even higher results for the second year of the survey.

The ongoing cost of living crisis has been hard for customers and we have continued to provide support in different ways. Our Income and Welfare Reform colleagues carried out around 700 in-person visits to customers that specifically expressed concerns about navigating the cost of living crisis. Across the last financial year, we supported 268 households through our Sustainability Fund, spending £82,898.

People in crisis have received help with items such as food and energy vouchers, heating oil, white goods, carpets, mobile phones, and school uniforms. The team also managed to obtain £20,599 in Discretionary Housing Payments last year from Cornwall Council, supporting 41 customers to clear rent arrears and sustain tenancies.

From a development perspective, we completed 191 more new affordable homes and started on site with 54 more during the year. This included the completion of our largest development yet at Quintrell Downs. We were delighted that for the 7th year in a row we earned a place on a top ten list of the fastest growing housing associations nationally. We came in at number four in a list looking at how many new homes housing associations were building as a percentage of current stock.

From a People and Culture perspective, we looked at how we can continue to encourage all our ‘great people’ to be the very best at what they do, and how we can support them holistically with other benefits and rewards. Just after the financial year closed, we were delighted to share the news with colleagues that we received Investors in People Gold (a step up from our previous silver award) and received a Living Pensions award for the work we have done in committing to a Living Pension for all colleagues.

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During the 2023 calendar year we raised a fantastic £9,160 for local Community Interest company Man Down. We fundraise for a different local cause each year and in 2023 colleagues decided they wanted to support Man Down. Sadly, a number of colleagues had been affected in some way by male suicide and mental health problems and everyone came together to agree that it was an important issue to support and raise awareness of.

Looking ahead to the next year, we see exciting times ahead but also times of change. Steve Harrison reaches the end of his six-year tenure on our Board and will therefore be stepping down as Chair. We look forward to welcoming Francesa Rhodes as Chair to take Coastline forward on the next step of its journey. This will also see us updating our Coastline Plan 2021-2025 to set the scene for what is to come for Coastline over the next five years. With our new Chair, strong board and team of great people, we feel we are well placed to work with the new Government and continue to make a real difference in our work as a social landlord.

Steve Harrison Allister Young Chair Chief Executive

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Strategic Report and Performance Highlights

PERFORMANCE HIGHLIGHTS

Our homes

Our financial strength

Maintenance of our homes

Levels of compliance

Our customer satisfaction

Our new customers

Our customer-led services

Regulator Rating – November 2022

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WHO ARE WE?

Coastline Group is one of the leading providers of affordable housing in Cornwall, providing 5,473 homes for more than 11,739 people, employing over 360 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:

OUR VALUES

OUR HOMES

During the year, the number of homes we own and managed reached 5,473. 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 191 new homes, including 84 affordable rented homes for general needs, 88 for shared ownership, 5 open market homes, 1 Rent to Buy and 12 social rented homes.

We have 5,473 owned and managed properties and 99 that we manage but do not own.

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Property numbers

2020
2021
2022
2023
2024
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		 4,364
4,426
4,511
4,589
4,616
370
409
456
522
606
6
5
3
2
1
54
69
89
86
99
114
117
126
128
151
4,908
5,026
5,185
5,327
5,473
685
660
704
710
697
5,593
5,686
5,889
6,037
6,170

STRATEGY, OBJECTIVES AND PERFORMANCE

2023/24 was our third year of our Coastline Plan ‘Great Futures’ 2021-2025 and our second 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 2023/24 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.

COASTLINE PLAN 2021-2025

During 2023/24 Coastline set 64 targets for the year to help track progress against the 17 aims of the Corporate Plan. Our progress at year end was 75% of these targets were achieved, with only 4% of targets significantly off track.

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Great
Homes		 Great
Services		 Great
People		 Great
Foundations		 Total March
24
On track 17 13 9 9 48
Slightlyoff-track 5 4 2 2 13
Significantly off-
track		 2 0 1 0 3
Not completed/
failed		 0 0 0 0 0
Total 24 17 12 11 64

Our key highlights for the year are:

Great Homes

What went well

What didn’t go as well

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Great Services

What went well

What didn’t go as well

Great People

What went well

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What didn’t go as well

Great Foundations

What went well

What didn’t go as well

VALUE FOR MONEY

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 VfM 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 VfM 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 VfM 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, that colleagues and customers were extensively involved in setting the aims of the plan in an inclusive ‘bottom up’ way. All

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colleagues are encouraged and supported to develop and propose improvements in what we do and how we do it. 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.

A summary of our performance across our key areas is provided below, including details of performance in line with the Regulator for Social Housing VfM Metrics:

|RSH
Reference
Indicator
(consolidated
entity
results)|2016/17
2018/19
2019/20
2020/21
2021/22
2022/23
17.50%
18.0%
13.0%
13.3%
8.1%
8.9%
Confirmed Results|2016/17
2018/19
2019/20
2020/21
2021/22
2022/23
17.50%
18.0%
13.0%
13.3%
8.1%
8.9%
Confirmed Results|2016/17
2018/19
2019/20
2020/21
2021/22
2022/23
17.50%
18.0%
13.0%
13.3%
8.1%
8.9%
Confirmed Results|2016/17
2018/19
2019/20
2020/21
2021/22
2022/23
17.50%
18.0%
13.0%
13.3%
8.1%
8.9%
Confirmed Results|2016/17
2018/19
2019/20
2020/21
2021/22
2022/23
17.50%
18.0%
13.0%
13.3%
8.1%
8.9%
Confirmed Results|2016/17
2018/19
2019/20
2020/21
2021/22
2022/23
17.50%
18.0%
13.0%
13.3%
8.1%
8.9%
Confirmed Results|Current
Year|Budget|Sector
LQ
Sector
Median
Sector
UQ
SW*
Median
4.3%
6.7%
9.4%
7.0%
0.6%
1.3%
2.2%
1.4%
2022/23|Sector
LQ
Sector
Median
Sector
UQ
SW
Median
4.3%
6.7%
9.4%
7.0%
0.6%
1.3%
2.2%
1.4%
2022/23|Sector
LQ
Sector
Median
Sector
UQ
SW
Median
4.3%
6.7%
9.4%
7.0%
0.6%
1.3%
2.2%
1.4%
2022/23|SW*
Median|Coastline
Trend
\Y|Coastline
2023/24
to SW
Median|2023/24
to Sector
Median| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |||||||2022/23
8.9%|2023/24
11.9%|2024/25
17.1%|||||||| |Metric 1 – Reinvestment
%|||||||||||||||| |Metric 2 – New Supply
Delivered %
(a – Social housingunits)|3.40%
0.00%|3.2%
0.0%|5.3%
0.0%|2.8%
0.1%|3.6%
0.0%|3.3%
0.4%|3.5%
0.2%|3.9%||||1.4%|\
/\
_/
\ fe
V||| |Metric 2 – New Supply
Delivered %
(b – Non-social housing
units)||||||||0.0%|0.0%|0.0%|0.1%|0.0%|\I \
|’
|N
—
||| |Metric 3 – Gearing
~~Po~~|57.10%
~~Po~~|57.2%
~~Po~~|55.6%
~~Po~~|57.4%
~~Po~~|59.2%
~~Po~~|54.0%
~~Po~~|54.3%
~~Po~~|56.3%
~~Po~~|33.4%
~~Po~~|45.3%
~~Po~~|53.7%
~~Po~~|40.5%
~~Po~~|~~Po~~||| |Metric
4
–
EBITDAMRI
Interest Cover
(note
different
to
Coastline loan covenants
basis,
exc.
Capitalised
interest)
Metric 5 – Headline Social
Housing Cost Per Unit|141.10%|187.8%|184.7%|123.0%|103.0%|88.0%|112.0%|103.6%|88.7%|128.4%|169.3%|158.0%|fm
}
|
\
‘in|
||\
\
\
|
\/
V||| ||£3,256|£3,161|£3,320|£3,930|£4,431|£4,679|£4,483|£4,386|£4,082|£4,586|£5,847|£4,341|||| |Metric
6
–
Operating
Margin
(a
–
Social
Housing
Lettings)|35.60%|35.9%|31.8%|29.3%|22.9%|18.0%|22.0%|23.7%|14.4%|19.8%|25.5%|18.8%|\
\\/
V||| |Metric
6
–
Operating
Margin(b – Overall)|34.00%|31.1%|26.2%|26.7%|20.4%|18.2%|17.0%|19.6%|12.0%|18.2%|23.0%|18.7%|~~~~~
—||| |Metric
7
–
Return
on
Capital Employed (ROCE)|5.00%|5.9%|5.8%|4.1%|4.4%|3.0%|4.1%**|7.5%|2.2%|2.8%|3.6%|3.0%|~~i~~
/\y\
ys
\V|||

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

In addition to the reporting within the Statutory Accounts Coastline also produces as many of the measures from the Sector Scorecard as possible from the Sustainability Reporting Standard in a separate document later in the year.

The Sustainability Reporting Standard for Social Housing (SRS) is an environmental, social and governance standard designed to help the housing sector measure, report and enhance ESG performance in a transparent, consistent and comparable way.

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Great Homes

We have completed 191 homes, a 3.5% rate of growth, during the year:

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.

This ambitious but thorough approach has seen us become one of largest providers of new affordable homes in Cornwall, and for the last seven years we 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 2023/24, only 16% of our repairs were classed as an emergency.

Customer satisfaction results have seen a significant shift with the Regulator requirements on customer satisfaction surveying and reporting which were published on the 23 March 2023 and saw a change from Coastline’s voluntary reporting on satisfaction which had been completed with the support of the Institute of Customer Services between 2020 and 2023.

The 2023 survey was supported by Acuity Research and Practice Ltd, who provide a range of resident satisfaction, benchmarking and social housing research and reported to the Regulator in June 2024.

Our initial results, collected in Summer 2023, were encouraging. We expect our overall satisfaction score of 81% to be above sector median, and we await with interest the publication of other registered providers performance so that we can better understand the relative service delivery of our business and continue to strive to services to our customers and communities that is of the best quality.

Great People

Whilst our headline social housing cost per unit has increased over the previous years, 2023/24 saw a slight reduction and is under the sector median. Our costs have increased to reflect previous investment, not only in our customer’s homes, but in our colleagues, but this has been offset by the growth in number of homes. We continue to ensure 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.

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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 2024 alongside explicit additional benchmarking of a number of trades 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 2023/24, we continued our investment in our customers’ homes. 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 long-term margins and returns.

Operating margin fell to 17% due to the loss on shared ownership activity, caused by a provision for 72 future first tranche sales following an increase in scheme costs for four schemes on site. However social housing lettings increased to 22% from 18.2% due to significant investment in our planned and cyclical investment in 2022/23.

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. 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 four years, we have taken advantage of our EBITDAMRI headroom by negotiating with lenders to reduce long-term interest cost liabilities by paying any mark to market costs. The change in interest rate environment over the last 24-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.

Our gearing continues to increase as we invest to build new affordable homes of various tenures. Whilst the final number of completions was below expectation during 2023/24, it is a level of completions which sees Coastline within the top 10 fastest growing housing providers for the seventh year in a row. We are the only organisation in the country 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.

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GROUP HIGHLIGHTS, FIVE YEAR SUMMARY

2020 2021 2022 2023 2024
£m £m £m £m £m
Statement of Consolidated Income
Turnover: continuing activities 30.5 33.4 38.5 36.7 48.2
Turnover: Shared Ownership Sales 6.5 3.9 7.1 5.1 8.1
Income from lettings 24.5 26.0 27.2 28.7 32.0
Property depreciation 3.5 4.0 4.2 4.5 5.4
Operating surplus before housing sales 8.8 8.4 7.0 6.5 8.4
Operating surplus from social housing lettings 7.8 7.6 6.2 5.1 7.1
Operating surplus 9.7 8.9 7.9 6.7 8.2
Surplus for the financial year 10.9 7.5 7.4 6.3 7.3
Statement of Financial Position
Housing properties 245.7
277.9
296.3
318.6
354.5
Cash and cash equivalents 5.1
12.1
6.2
61.5
5.7
Indebtedness 143.4
173.4
183.7
235.7
198.1
Total reserves 55.8
59.1
68.5
74.8
82.0
Statistics
Operating margin 26.2%
26.7%
20.4%
17.2%
17.0%
Operating margin excluding sales 36.7%
28.5%
22.6%
20.6%
24.0%
Surplus as % of turnover 35.7%
22.5%
19.2%
17.2%
17.0%
Operating margin social housing lettings 31.8%
29.3%
22.9%
18.0%
22.0%
Rent losses £403,000
£585,000
£459,000
£380,000
£336,000
Gearing (tightest covenant) 50.6%
52.0%
53.6%
59.1%
58.1%
EBITDA – MRI interest cover (tightest
covenant) 218.0%
144.3%
131.3%
119.9%
126.5%
Units
Units
Units
Units
Units
Total social and supported rental 4,418
4,495
4,600
4,675
4,715
Total low costs home ownership 370
409
456
522
606
Total leasehold and market rent 123
122
129
130
152
Total housing 4,911
5,026
5,185
5,327
5,473

The results remain strong for 2023/24 and we have delivered a surplus for the year of £7.3 million (2023: £6.3 million). This surplus is stated after £6.6 million profit from property sales and £11.6 million costs to maintain our existing properties

We achieved first tranche sales of 72 against a target of 70, delivering an operating margin of £0.7 million versus a target of £0.7 million. However, a provision of £960,000 for 72 future first tranche sales has been

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included following an increase in scheme costs for four schemes on site. Our outright sale of 19 homes against our target of 20, achieving an operating margin of break-even.

The surplus for the year meant we increased our net assets by £7.2 million with housing properties increasing by £35.9 million. We spent £23.3 million on housing under construction and completed 191 new homes with a value of £20.7 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 (beyond what is appropriate for sensible risk management purposes).

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 2024, the breakdown of borrowings was as set out below:

Arranged
Drawn
Undrawn
£m
£m
£m
Bank loans 209.3
157.3
52.0
Bond issues 8.3
8.3
-
Private placement 32.5
32.5
-
Total funding 250.1
198.1
52.0

Borrowing facilities are at both fixed and floating rates of interest in order to manage exposure to interest rate fluctuations. At 31 March 2024, fixed rates of interest ranged from 1% to 7.1%.

Type of exposure Actual
Minimum
Maximum
Fixed rate 195.6
97.8
195.6
Floating rate 2.5
0.0
97.80

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.

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At the year-end, our drawn borrowings of £198.1 million were repayable as follows:

2020
2021
2022
2023
2024
£m
£m
£m
£m
£m
Within one year 1.0
-
-
-
-
Between one and two years -
-
-
-
-
Between two and five years 36.0
67.7
46.8
89.5
48.5
After five years 106.4
105.7
136.9
146.2
149.6
Total borrowings 143.4
173.4
183.7
235.7
198.1

2022/23 had a higher level of debt due to completion on a new £50 million facility with ARA Venn at the end of the financial year but the excess facilities were repaid at the beginning of 2023/24.

Cash inflows and outflows are shown in the Group cash flow statement on page 39. The net decrease in cash was £55.9 million, predominantly due to the investment in our new and existing homes and net repayment of £37.6 million of loans.

GOVERNANCE

----- Start of picture text -----
BOARD
AUDIT, RISK AND ASSURANCE PROPERTY AND INVESTMENT CUSTOMER EXPERIENCE
PEOPLE COMMITTEE
COMMITTEE COMMITTEE COMMITTEE
Responsible for overseeing
Responsible for assisting funding requirements and
Responsible for the Board to meet its arrangements, 30 year
overseeing risk and strategic responsibilities in business plan along with Responsible for overseeing
assurance, financial relation to its people the stress tests and the customer experience for Coastline's customers
management, internal activities and developments defensive action plan,
and external audit, and in ever changing working performance of the
review of the Asset & and operational development and Members:
Liability Register environments maintenance programmes,
oversee the asset Kelly Kemp (Chair)
management and repairs David Barlow (NED)
Members: Members: strategy, and review Paul Doddrell (NED)
Charles Pears (Chair) contract procurement
Karen Harris (Chair) Gill Pipkin (Co-optee)
Karen Harris (NED) Members:
Charles Pears (NED) Edward Chapman
Ben Treleaven (NED) Andrew Moore (Chair) (customer)
David Barlow (NED) Steve Harrison (NED) Steve Harrison (NED) Clare Jones (customer)
Paul Doddrell (NED) Andrew Moore (NED) Charles Pears (NED) Steve Curtis (customer)
Michelle Tucker (Co- Keith Surgenor Ben Treleaven (NED) Molly Gaunt (customer)
optee) (Independent Member) Darren Willcocks
(Independent Member)
Allister Young (CEO)
----- End of picture text -----

EXECUTIVE TEAM

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The Board is composed of nine non-executive members, two co-opted non-executive members and 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. 2023/24 saw the launch of our new non-executive directors development programme which is about equality, diversity and inclusion and building capacity for future succession planning for us and the wider sector.

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 2023/24 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 non-executive directors 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 35 regularly involved customers and a further 70 volunteers working with us. In addition, we surveyed 4,911 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.

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Equality, Diversity and Inclusion (EDI)

We are committed to giving fair and equal treatment to people and our EDI plan sets out how we employ a diverse profile of great people who are representative of the communities we serve. This helps us provide equal access to great services for our customers.

Fuller details of our approach and commitments can be found on our website under the EDI section where our Annual Equality, Diversity and Inclusion Statement is published: Annual_EDI_position_statement_and_actio_plan_24_25_Web_Version.pdf (coastlinehousing.co.uk)

Coastline retains accreditation as both a Living Wage Foundation and Living Pensions Employer and sees these as being an important aspect of avoiding poverty within our business. Coastline also has level 3 Disability Confident status which allows us to be recognised for the work we do. It also enables us to be more proactive in attracting and supporting different candidates and volunteers into Coastline.

Gender Pay Reporting

The gender pay gap for 2023/24 was 2.66% (6.97% in 2022/23). We continue to remain committed to an approach to pay, recruitment and retention and continue to strive to improve on this position.

The most significant change is in relation to the headline performance bonus amounts, which were awarded for 2023/24 due to the improved financial performance during the year, alongside strong performance against the aims of the Coastline Plan. Furthermore, the mean hourly rate figures have increased by around 12% which will have been as a result of annual pay increases and the on-going adoption of the living wage.

During 2023/24, we employed more employees within maintenance services staff, who were mainly male alongside a decision to increase pay to reflect the current market salaries for similar roles within in Cornwall. This is offset against current vacancies within our extra care service who predominately tend to be female. The gender balance within the highest pay band was impacted by a restructure and reduction in head count in our development team, which is predominantly female.

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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 5.64:1 (2023, 5.15:1).

Further details of Executive and staff salaries can be found in the Notes to the Financial Statements (note 9, page 56).

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 of Practice. 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;

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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.

During the year the Risk Management and Assurance Policy was updated to reflect a move from a single risk appetite to a more granular approach with a separate risk appetite for each theme within the strategic risk map. The Group risk appetite definitions and appetites assigned to each theme are given in the tables below and have been confirmed as part of the Annual Risk Review approved by the Board in May 2024.

Appetite Level Appetite Definition
Averse Avoidance of risk and uncertainty is the key objective
Cautious Preference for very safe options that have a very low degree of inherent risk, acceptance
that potential rewards therefore likely to be limited
Fair Preference for safe options that have a low degree of inherent risk, acceptance that
potential rewards are likely to be limited
Moderate Preference for options which offer greater potential rewards, willing to accept greater
inherent risks
Opportunistic Preference for innovative options with highest potential rewards and inherent risks

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
Map Theme		 Risk Category Risk Appetite Risk Mitigation Strategy
Product Safety Operations Averse Detailed assurance map on property related
requirements coupled with third party expert
reviews for example CORGI accredited Landlord
Gas Safety processes.
Property Averse

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(including
landlord health
and safety)		 Legal Averse 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		 People Moderate 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.
Governance
(including
Board,
Executive, staff
and volunteers
in
relation
to
skills)		 Governance Averse
Government
Policy,
legislation
and
regulation		 Legal Cautious 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		 Financial Fair 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)
Wider
economic		 Moderate 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)		 Project/
Programme		 Fair Investment into ICT to provide systems and
infrastructure that can support growth
Cross departmental working supporting issues of
peak delivery.
Reputation and
Trust		 Reputational Fair 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

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Markets
and
Supply Chain		 Commercial Fair 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.
Technology,
Data
and
Cybersecurity		 Technology Fair 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.
Data &
information
management		 Cautious
Climate Change
and
related
impacts across
all of the above
Strategic Risks.		 Climate
change		 Fair 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 2024 and up to the date of the approval of these financial statements.

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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 (2023: £nil). Donations made to charity or other community funding arrangements during the year totalled £12,741 (2023: £16,497).

Disclosure of Information to Auditors

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

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.

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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:

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 Chair – Coastline Housing Ltd

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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:

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, expert speakers at Board strategy sessions, including speakers from the Federation of Small Businesses and the National Housing Federation 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 2023/24, 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., including our two new independent committee members.

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 19).

The Board routinely monitors the delegation of authority, ensuring it is regularly updated, while retaining ultimate responsibility. The most recent review was completed in November 2023.

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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:

1. 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.

  1. 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.

  1. 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.

  2. 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 2023/24 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 21
Section 172 (1) (C)
Fostering business relationships
with
suppliers, customers
and
others		 Strategy, objectives and performance 10 to 21
Section 172 (1) (D)
Impact
of
operations
on
the
community and the environment		 Strategy, objectives and performance 10 to 21, 31
Section 172 (1) (E)
Maintaining
high
standard
of
business conduct		 Governance and Committee Structures
Risk management		 19, 20, 22 to 27
Section 172 (1) (F)
Acting fairly between members		 Balanced long-term decision making
Code of Governance		 10 to 20

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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. This report presents a full 3rd party verified SECR statement, compared to the previous financial year’s energy usage, for use in Coastlines annual reporting. As at 1 April 2024 Coastline owned 4,690 low-cost rental domestic homes which includes general needs, supported and Extra Care accommodation.

In addition, for the purposes of SECR operational impacts include 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 2023-31 March 2024 Green House Gas Emissions (GHG) and Energy 1 April 2023-31 March 2024 Green House Gas Emissions (GHG) and Energy 1 April 2023-31 March 2024
Total Tonnes CO2 Units
Scope 1 – Direct Emissions
Fuel for transport purposes 227.53 951,580.41kWh
Natural Gas 326.28 1,783,639.13 kWh
Scope 2 – Indirect Emissions
Electricity 178.62 862,629.62 kWh
Total – Scope 1 + 2 732.43
Scope 3 – Other Indirect Emissions
Housing Stock 6209.19 4,690 homes
Grand Total 6,941.62
Intensity Ratio 1.48 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

As in previous years Coastline continues to focus energy and waste reduction by using a wide range of cost-effective improvements as driven by work packages relating to the Environmental Strategy. During 2023/24 these improvements included waste collected during 5 targeted Neighbourhood Waste Amnesty Days, to help reduce risks of fly tipping and littering, 104 customers provided with water saving devices,

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whilst 14 customers were nominated within the annual garden competition and a further 5 customer Green Champions nominated. Constantine wild flowering project was planned and completed by the local resident group transforming a small area of the neighbourhood which the group now help to maintain.

The previously launched Tool Loan Project provides low carbon electrical garden tools for customers to use to maintain their gardens. The scheme has proven very popular within the Redruth area and is valued by customers who cannot afford equipment to improve their gardens.

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 is 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 2023/24. Energy information relating to home ratings has been published on social media and regularly within “Coastlines” customer magazine, alongside energy saving advice and guidance.

Maintenance teams continue to work with suppliers of goods and materials to provide improved information in terms of environmental impact of all goods supplied. Coastline’s main supplier, Bradfords, have published that a small overall reduction was made in Scope 1 carbon emissions with target to be scope 1 net zero by 2044 whilst Scope 2 emissions remained insignificant due to sourcing green energy, bolstered by the addition of solar PV to 7 branches over the course of 2023. Based on sector benchmarking, ~95% of Bradfords’ carbon footprint lies in scope 3 - those activities which lie outside the direct control of the business. Bradfords has committed to support Scope 3 emissions and has now set up a client environmental working group.

In terms of property asset investment Coastline continued to invest in lower carbon and more efficient heating sources and systems and saw the completion of the multi-award winning “Heat the Streets” project with local Partner Kensa, resulting in over 40 homes being connected to innovative Ground Source heat networks.

To further reduce the environmental impact of the housing stock a number of heating systems have been replaced with more energy efficient units including air and ground source heat pump installations, smart electric heating Installations, natural gas boiler only upgrades, natural gas installations and a small number of replacement oil heating installations.

By order of the Board

Steve Harrison Chair – Coastline Housing Ltd 29 August 2024

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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 2024, 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:

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

33

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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:

Responsibilities of Board of directors

As explained more fully in the Director’s report set out on page 28, 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.

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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:

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:

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.

...................................... -46B3EDEBE022494.

Duncan Leslie (Senior Statutory Auditor) PKF Francis Clark, Statutory Auditor Lowin House, Tregolls Road, Truro, TR1 2NA DATE)..................... 03 September 2024

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Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

Group and Company Statement of Comprehensive Income for the year ended 31 March 2024

GROUP GROUP COMPANY COMPANY
Note 2024 2023 2024 2023
£’000 £’000 £’000 £’000
Turnover: continuing activities 2 48,242 37,940 47,906 37,582
Cost of sales 2 (13,441) (6,079) (13,441) (6,079)
Operating costs 2 (26,591) (25,189) (26,297) (24,862)
Operating surplus 2 8,210 6,672 8,168 6,641
Gift aid receivable - - 48 178
Surplus on sales of properties 5 6,633 5,034 6,633 5,034
Other finance expenditure 6 (673) (660) (673) (660)
Interest receivable and other income 370 85 370 85
Interest payable and similar charges 7 (7,201) (4,808) (7,201) (4,808)
Surplus for the year before taxation 4 7,339 6,323 7,345 6,470
Tax on surplus 26 - - - -
Surplus for the year 7,339 6,323 7,345 6,470
Other Comprehensive Income
Actuarial Gain/(loss) on pension scheme 24 (147) (100) (147) (100)
Total recognised surplus for the year 7,192 6,223 7,198 6,370

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 29 August 2024 and signed on its behalf by:

S Harrison Chair

K Harris Chair of Audit, Risk and Assurance Committee

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Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

Statement of Financial Position as at 31 March 2024 (Reg. Number: 03284666)

GROUP GROUP COMPANY COMPANY
Note 2024 2024
2023		 2023
2024		 2023
£’000 £’000
£’000		 £’000 £’000
Fixed assets:
Intangible fixed assets 11 213 213
352		 213 352
Housing properties 12 354,511 354,511
318,647		 355,666 319,795
Other tangible fixed assets 13 5,134 5,134
5,219		 5,105 5,198
Investments 14 25 25
-		 100 75
Total fixed assets 359,883 359,883
324,218		 361,084 325,420
Current assets:
Stock 16 12,710 12,710
20,873		 11,847 20,505
Rental and other debtors 15 4,735 4,735
2,164		 4,614 2,077
Cash and cash equivalents 17 5,661 5,661
61,546		 4,573 60,695
Total current assets 23,106 23,106
84,583		 21,034 83,277
Creditors: amounts falling due within one year Creditors: amounts falling due within one year
18		 (17,302) (17,302)
(15,966)		 (15,884) (15,321)
Net current assets 5,804 68,617 5,150 67,956
Total assets less current liabilities 365,687 365,687
392,835		 366,234 393,376
Creditors: amounts falling due after more than 19 (282,188) (282,188)
(316,662)		 (282,188) (316,662)
one year
Pension deficit funding liabilities 23 (78) (78)
(95)		 (78) (95)
Pension defined benefit liability 23 (1,461) (1,461)
(1,310)		 (1,461) (1,310)
Provision for tax liabilities 27 - -
-		 - -
Net assets 81,960 81,960
74,768		 82,507 75,309
Represented by:
Capital and reserves:
Revenue reserves 81,960 81,960
74,768		 82,507 75,309
81,960 81,960
74,768		 82,507 75,309
These financial statements were approved by the Board on 29 August 2024 and signed on its behalf by: These financial statements were approved by the Board on 29 August 2024 and signed on its behalf by: These financial statements were approved by the Board on 29 August 2024 and signed on its behalf by:
K Harris
S Harrison Chair of Audit, Risk
Chair and Assurance
Committee

37

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

Consolidated Statement of Cash Flows for the year ended 31 March 2024

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
Loss on sale of shared ownership properties
(Decrease)/increase in trade and other debtors
Increase/(Decrease) in stocks
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 shared ownership properties
Acquisitions of housing properties
Capital improvements to existing properties
Acquisitions of other fixed assets
Grants received to support capital expenditure
Purchase of shares in a company
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 (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at 1 April
(i)
Cash and cash equivalents at 31 March		 2024
2023
£000
£000
7,339
6,323
5,624
5,204
136
59
(6,633)
(5,034)
1
-
269
-
(2,571)
1,027
8,163
(5,120)
1,323
6,043
-
-
(370)
(85)
5,960
2,604
311
362
(1,627)
(1,053)
-
-
17,925
10,330
13,761
5,416
8,146
-
(52,308)
(2,731)
(21,349)
(3,692)
(663)
(1,308)
4,712
(25)
19,066
-
(29,108)
(1,867)
(6,831)
(4,723)
10,000
61,000
(47,605)
(8,950)
(265)
(440)
(44,701)
46,887
(55,885)
55,350
61,546
6,196
5,661
61,546

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Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

(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
2023
Cash
flows
Other non-
cash
changes
At 31
March
2024
£000
£000
£000
£000
61,546
(55,885)
-
5,661
-
-
-
-
-
-
-
-
61,546
(55,885)
-
**5,661 **
-
-
-
-
(235,775)
37,606
-
(198,169)
(235,775)
37,606
-
(198,169)
(174,229)
(18,279)
-
(192,508)

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Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

Statement of Changes in Equity

GROUP
Balance at 1 April 2022
Surplus for the year
Other comprehensive income (see note 24)
Total comprehensive income for the year
Transfer from Garlidna Reserve
Balance at 31 March 2023
Balance at 1 April 2023
Surplus for the year
Other comprehensive income (see note 24)
Total comprehensive income for the year
Transfer to Garlidna Reserve
Balance at 31 March 2024
COMPANY
Balance at 1 April 2022
Surplus for the year
Other comprehensive income (see note 24)
Total comprehensive income for the year
Transfer from Garlidna Reserve
Balance at 31 March 2023
Balance at 1 April 2023
Surplus for the year
Other comprehensive income (see note 24)
Total comprehensive income for the year
Transfer to Garlidna Reserve
Balance at 31 March 2024		 Revenue
reserve
Garlidna
reserve
Restricted
reserve
Total
equity
£000
£000
£000
£000
68,277
236
32
68,545
6,323
-
-
6,323
(100)
-
-
(100)
6,223
-
-
6,223
(25)
25
-
-
74,475
261
32
74,768
74,475
261
32
74,768
7,339
-
-
7,339
(147)
-
-
(147)
7,192
-
-
7,192
(14)
14
-
-
81,653
275
32
81,960
Revenue
reserve
Garlidna
reserve
Restricted
reserve
Total
equity
£000
£000
£000
£000
68,671
236
32
68,939
6,470
-
-
6,470
(100)
-
-
(100)
6,370
-
-
6,370
(25)
25
-
-
75,016
261
32
75,309
75,016
261
32
75,309
7,345
-
-
7,345
(147)
-
-
(147)
7,198
-
-
7,198
(14)
14
-
-
82,200
275
32
**82,507 **

40

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

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:

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 2024. 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.

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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 2024 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 2024/25 and the Group’s medium- and long-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 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.

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Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

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.

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Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

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.

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Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

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 10% 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.

45

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

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.

46

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

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)

47

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

2 Turnover, Operating Costs and Operating Surplus

GROUP
Social housing lettings
Support contracts
Care and support
Other activities
Open market sales
Shared ownership first
tranche sales
COMPANY
Social housing lettings
Support contracts
Care and support
Other activities
Open market sales
Shared ownership first
tranche sales		 2024
2023
Turnover
Cost of
sales
Operating
costs
Operating
surplus
Turnover
Cost of
sales
Operating
costs
Operating
surplus
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
32,036
-
(24,950)
7,086
28,652
-
(23,503)
5,149
824
-
(824)
-
811
-
(811)
-
1,302
-
(554)
748
1,194
-
(586)
608
817
-
(171)
646
887
-
(203)
684
5,117
(5,117)
-
-
1,250
(1,250)
-
-
8,146
(8,324)
(91)
(269)
5,146
(4,829)
(86)
231
48,242
(13,441)
(26,591)
8,210
37,940
(6,079)
(25,189)
6,672
2024
2023
Turnover
Cost of
sales
Operating
Costs
Operating
surplus
Turnover
Cost of
sales
Operating
Costs
Operating
surplus
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
32,036
-
(24,827)
7,209
28,652
-
(23,379)
5,273
824
-
(824)
-
811
-
(811)
-
1,302
-
(555)
747
1,194
-
(586)
608
481
-
-
481
529
-
-
529
5,117
(5,117)
-
-
1,250
(1,250)
-
-
8,146
(8,324)
(91)
(269)
5,146
(4,829)
(86)
231
47,906
(13,441)
(26,297)
8,168
37,582
(6,079)
(24,862)
6,641

48

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

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
2024
2023
£’000
£’000
£’000
£’000
£’000
21,308
5,310
1,656
28,274
25,652
1,707
764
-
2,471
1,947
1,291
-
-
1,291
1,053
24,306
6,074
1,656
32,036
28,652
(3,653)
(858)
(542)
(5,053)
(5,379)
(1,655)
(407)
(257)
(2,319)
(2,289)
(1,400)
(344)
(218)
(1,962)
(1,638)
(6,089)
(1,496)
(948)
(8,533)
(7,645)
(812)
(199)
(126)
(1,137)
(1,325)
(80)
(20)
(12)
(112)
(364)
(3,837)
(943)
(595)
(5,375)
(4,549)
(328)
(80)
(51)
(459)
(314)
(17,854)
(4,347)
(2,749)
(24,950)
(23,503)
6,452
1,727
(1,093)
7,086
5,149
Total income from lettings is shown net of void rents losses:
Rent losses from voids
(218)		 (118) - (336) (380)

49

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

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
2024
2023
£’000
£’000
£’000
£’000
£’000
21,308
5,310
1,656
28,274
25,652
1,707
764
-
2,471
1,947
1,291
-
-
1,291
1,053
24,306
6,074
1,656
32,036
28,652
(3,495)
(858)
(542)
(4,895)
(5,217)
(1,655)
(407)
(257)
(2,319)
(2,289)
(1,405)
(344)
(218)
(1,967)
(1,644)
(6,111)
(1,501)
(948)
(8,560)
(7,672)
(814)
(200)
(126)
(1,140)
(1,330)
(80)
(20)
(12)
(112)
(364)
(3,837)
(943)
(595)
(5,375)
(4,549)
(328)
(80)
(51)
(459)
(314)
(17,725)
(4,353)
(2,749)
(24,827)
(23,379)
6,581
1,721
(1,093)
7,209
5,273

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

Rent losses from voids

(218) (118) - (336) (380)

During the year the Company spent £14.363 million (2023: £14.781 million) on maintaining and improving its existing property stock of which £2.732 million (2023: £4.125 million) was capitalised. £nil million grant was received in respect of this expenditure during the year (2023 £nil million).

50

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

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		 2024
Properties
2023
Properties
2,218
2,252
1,438
1,388
649
649
149
121
175
279
606
522
1
2
86
86
151
128
5,473
5,327

51

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

4 Surplus for the Financial Year before Taxation

GROUP GROUP COMPANY COMPANY
This is stated after charging/ (crediting): 2024 2023 2024 2023
£’000 £’000 £’000 £’000
Depreciation on housing properties 4,874 4,549 4,874 4,549
Depreciation of other tangible fixed assets 750 655 735 640
Amortisation of intangible fixed assets 136 59 136 59
Amortisation of grant income 1,291 1,053 1,291 1,053
Accelerated life on components 499 229 499 229
(Loss)/Gain on disposal of tangible fixed assets 9 45 1 30
Operating lease rentals:
- vehicles, plant and equipment 21 23 - -
- land and buildings 36 36 - -
Auditor’s remuneration:
- audit of these financial statements 37 24 37 24
- audit of the financial statements of subsidiary companies 9 17 - -
- tax services 8 8 - -
- other services - - - -

52

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

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
7
Interest Payable and Similar Charges
GROUP and COMPANY
On loans and bank overdrafts
Break costs
Interest capitalised on developments under construction		 2024
£’000
2023
£’000
13,761
7,569
(7,050)
(2,310)
(78)
(225)
6,633
5,034
2024
£’000
2023
£’000
369
330
(7)
(32)
311
362
673
660
2024
£’000
2023
£’000
8,193
7,012
249
-
(1,241)
(2,204)
7,201
4,808

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

53

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

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		 2024
Number
2023
Number
350
339
341
301
2024
Number
2023
Number
227
220
221
186
2024
£’000
2023
£’000
10,028
9,199
968
875
589
457
11,585
10,531
2024
£’000
2023
£’000
6,880
6,273
714
638
451
343
8,045
7,254

54

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

(c) The full-time equivalent number of staff who received remuneration above £60,000:

GROUP
£170,000 to £180,000
£160,000 to £170,000
£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
£170,000 to £180,000
£160,000 to £170,000
£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		 2024
No.
2023
No.
1
-
-
-
-
1
2
-
1
2
-
1
-
-
-
-
1
-
5
3
3
5
3
1
2024
No.
2023
No.
1
-
-
-
-
1
2
-
1
2
-
1
-
-
-
-
1
-
4
2
3
5
3
1

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

55

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

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
TOTAL – COMPANY and
GROUP		 Salary
£
Other
emoluments
£
Pension
£
2024 Total
£
2023 Total
£
137,310
25,185
11,397
173,892
156,285
116,682
21,858
9,685
148,225
131,063
116,626
21,180
9,497
147,303
130,335
107,021
18,406
8,883
134,310
121,916
477,639
86,629
39,462
603,730
539,599

The Executive Team remuneration above includes a Higher Performance Award (HPA), which is overseen by the Board, supported by the People Committee. Coastline’s Executive salaries are benchmarked to median levels, and the HPA allows the Board to reward performance when it is above median levels, without consolidating this into base salary. Eligibility is assessed against a balanced scorecard criteria that includes financial and non-financial targets. This award is structured over a threeyear period, with payments in the first two years out of a maximum of 7.5%, and in the third year a maximum of 15%. 2023/24 was the third year of the scheme, and this accounts for the increase in ‘other emoluments’ for members of the Executive Team.

56

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

NON - EXECUTIVE DIRECTORS
M Duddridge (Former Chair)
S Harrison (Chair)
A Moore
K Harris
C Pears
B Treleaven
D Barlow
K Kemp
P Doddrell
M Tucker
G Pipkin
TOTAL – COMPANY AND GROUP
INDEPENDENT COMMITTEE
MEMBERS
M Tucker
E Chapman
J De-Ville
S Curtis
C Jones
M Gaunt
K Surgenor
D Willcocks
TOTAL – COMPANY AND GROUP		 2024
£
2023
£
2,167
13,000
12,133
7,800
9,533
7,800
7,800
6,100
7,375
5,250
5,250
5,250
5,250
5,250
8,650
5,250
5,250
5,250
1,313
-
1,313
-
66,034
60,950
2024
£
2023
£
2,437
2,500
3,250
2,500
-
1,250
3,250
2,500
3,250
1,460
3,250
2,500
812
-
812
-
17,061
12,710

Expenses paid during the year to Board Members amounted to £1,457 (2023: £3,477).

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 (2023: four). At the year-end £nil of pension scheme contributions relating to Executive Officers remained unpaid (2023: 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:

57

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

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

GROUP and COMPANY
Cost
At 1 April 2023
Net Additions
Disposals
At 31 March 2024
Depreciation
At 1 April 2023
Charged in year
Disposals
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023		 Group
£’000
Company
£’000
Computer
Software
Computer
Software
1,786
1,736
(3)
(3)
-
-
1,783
1,733
(1,434)
(1,384)
(136)
(136)
-
-
(1,570)
(1,520)
213
213
352
352

58

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

12 Tangible Fixed Assets – Housing Properties

Group
Cost
As at 1 April 2023
Additions
Schemes completed
Components
Capitalised
Disposals
At 31 March 2024
Depreciation
As at 1 April 2023
Charge for the year
Eliminated on
Disposals
At 31 March 2024
Net Book Value
At 31 March 2024
At 31 March 2023		 Freehold Properties
Completed
Under
Construction
£’000
£’000
256,061
47,007
6,327
17,771
15,747
(15,747)
2,675
-
(1,746)
-		 Shared Ownership
Properties
Garlidna
Alms
Total
Completed
Under
Construction
£’000
£’000
£’000
£’000
39,459
15,390
381
358,298
9,984
5,524
-
39,606
4,887
(4,887)
-
-
-
-
57
2,732
(513)
-
-
(2,259)		 Shared Ownership
Properties
Garlidna
Alms
Total
Completed
Under
Construction
£’000
£’000
£’000
£’000
39,459
15,390
381
358,298
9,984
5,524
-
39,606
4,887
(4,887)
-
-
-
-
57
2,732
(513)
-
-
(2,259)
279,064
49,031		 53,817 16,027
438
398,377
(37,655)
-
(4,389)
-
624
-		 (1,917)
(481)
35		 -
(79)
(39,651)
-
(4)
(4,874)
-
-
659
(41,420)
-		 (2,363) -
(83)
(43,866)
237,644
49,031		 51,454 16,027
355
354,511
218,406
47,007		 37,542 15,390
302
318,647

59

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

Company
Cost
As at 1 April 2023
Additions
Schemes completed
Components
Capitalised
Disposals
At 31 March 2024
Depreciation
As at 1 April 2023
Charge for the year
Eliminated on
Disposals
At 31 March 2024
Net Book Value
At 31 March 2024
At 31 March 2023		 Freehold Properties
Completed
Under
Construction
£’000
£’000
256,086
47,582
6,327
17,775
15,747
(15,747)
2,675
-
(1,746)
-		 Shared Ownership
Properties
Garlidna
Alms
Total
Completed
Under
Construction
£’000
£’000
£’000
£’000
39,556
15,841
381
359,446
9,985
5,526
-
39,613
4,887
(4,887)
-
-
-
-
57
2,732
(513)
-
-
(2,259)		 Shared Ownership
Properties
Garlidna
Alms
Total
Completed
Under
Construction
£’000
£’000
£’000
£’000
39,556
15,841
381
359,446
9,985
5,526
-
39,613
4,887
(4,887)
-
-
-
-
57
2,732
(513)
-
-
(2,259)
279,089
49,610		 53,915 16,480
438
399,532
(37,655)
-
(4,389)
-
624
-		 (1,917)
(481)
35		 -
(79)
(39,651)
-
(4)
(4,874)
-
-
659
(41,420)
-		 (2,363) -
(83)
(43,866)
237,669
49,610		 51,552 16,480
355
355,666
218,431
47,582		 37,639 15,841
302
319,795

Included in the cost of housing properties is £6.292 million in respect of cumulative capitalised development administration costs (2023: £5.600 million) and cumulative capitalised interest of £12.924 million (2023: £11.683 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 2024 on an existing use value, Social Housing (EUV-SH) basis was £242.9 million (2023: £220.1 million).

For information purposes only, completed housing properties are valued at 31 March 2024 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

60

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

13 Tangible Fixed Assets – Other

GROUP

Cost
At 1 April 2023
Additions
Disposals
At 31 March 2024
Depreciation
At 1 April 2023
Charged in year
Disposals
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023		 Freehold
offices
Furniture,
fixtures
and
fittings
Computer
hardware
Plant,
equipment
and
vehicles
Community
alarm
equipment
Total
£’000
£’000
£’000
£’000
£’000
£’000
4,017
1,820
1,383
1,985
280
9,485
50
14
104
382
118
668
-
(14)
-
(58)
-
(72)
4,067
1,820
1,487
2,310
398
10,081
(697)
(1,369)
(1,141)
(995)
(65)
(4,266)
(92)
(135)
(143)
(348)
(32)
(750)
-
13
-
56
-
69
(789)
(1,491)
(1,284)
(1,287)
(97)
(4,947)
3,278
329
203
1,023
301
5,134
3,320
451
242
991
215
5,219

61

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

COMPANY

Cost
At 1 April 2022
Additions
Disposals
At 31 March 2024
Depreciation
At 1 April 2023
Charged in period
Disposals
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023		 Freehold
offices
Furniture
, fixtures
and
fittings
Computers
hardware
Plant,
equipment
and
vehicles
Community
alarm
equipment
Total
£’000
£’000
£’000
£’000
£’000
£’000
4,017
1,815
1,383
1,647
280
9,142
50
14
104
357
118
643
-
(14)
-
-
-
(14)
4,067
1,815
1,487
2,004
398
9,771
(697)
(1,364)
(1,141)
(677)
(65)
(3,944)
(92)
(135)
(143)
(333)
(32)
(735)
-
13
-
-
-
13
(789)
(1,486)
(1,284)
(1,010)
(97)
(4,666)
3,278
329
203
994
301
5,105
3,320
451
242
970
215
5,198

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
Ordinary shares £312.50 each - Go
Collaborate Limited		 GROUP
2024
£
2023
£
-
-
-
-
-
-
-
-
25,000
-
25,000
-		 COMPANY
2024
£
2023
£
75,000
75,000
1
1
1
1
100
100
25,000
-
100,102
75,102

62

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

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.

The Company holds 1.68% of the share capital of GoCollaborate Limited. GoCollaborate Limited is a company incorporated in England and Wales (Company number 12915479). The principal activities of the company is to provide an accessible and more engaging consultation platform on community projects and developments. More information and access to the accounts of GoCollaborate Limited can be obtained from its registered office at 1a Lower East Street, St Columb, Cornwall TR9 6AX.

63

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

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
16 Stock		 GROUP
2024
£’000
2023
£’000
413
409
286
334
(603)
(579)
96
164
85
73
51
8
4,228
1,578
(360)
(406)
635
747
4,735
2,164		 COMPANY
2024
£’000
2023
£’000
413
409
286
334
(603)
(579)
96
164
-
-
25
3
4,228
1,578
(360)
(406)
625
738
4,614
2,077
16 Stock
Shared ownership first tranches
-
Completed
-
Work in progress
Outright sale properties
-
Completed
-
Work in progress
Work in progress		 GROUP
2024
£’000
2023
£’000
4,445
2,182
6,029
4,476
1,373
5,852
-
7,995
863
368
12,710
20,873		 COMPANY
2024
£’000
2023
£’000
4,445
2,182
6,029
4,476
1,373
5,852
-
7,995
-
-
11,847
20,505

64

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

17 Cash and Cash Equivalents

Cash at bank and in hand
Cash and cash equivalents per cash flow statement		 GROUP
2024
£’000
2023
£’000
5,661
61,546
5,661
61,546		 COMPANY
2024
£’000
2023
£’000
4,573
60,695
4,573
60,695

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
2024
£’000
2023
£’000
3,156
1,964
983
931
198
186
10,777
11,206
2,188
1,679
-
-
17,302
15,966		 COMPANY
2024
£’000
2023
£’000
1,839
1,218
983
931
196
186
7,094
5,707
2,188
1,679
3,584
5,600
15,884
15,321

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

65

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

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		 2024
£’000
2023
£’000
165,637
203,240
33
35
32,500
32,500
(2,022)
(2,068)
196,148
233,707
85,967
82,649
73
306
282,188
316,662

Total additional fees of £269,000 incurred in respect of new loan facilities (2023: £442,000) were capitalised during the year. During the year £316,000 (2023: £364,000) 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 £95.1 million (2023: £90.5 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		 2024
£’000
2023
£’000
82,649
64,636
4,609
19,066
(1,291)
(1,053)
85,967
82,649
2024
£’000
2023
£’000
1,349
1,276
84,618
81,373
85,967
82,649

66

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

Recycled Capital Grant Fund

ecycled Capital Grant Fund
Opening balance 1 April
Arising in the year
Applied to development schemes
Closing balance 31 March		 2024
£’000
2023
£’000
306
193
103
113
(336)
-
73
306

20 Debt Analysis

Debt is repayable as follows GROUP and COMPANY

Less than one year
Between two and five years
After five years		 2024
£’000
2023
£’000
-
-
48,500
89,553
149,636
146,187
198,136
235,740

Borrowing Facilities

The Group and Company has undrawn committed borrowing facilities. Undrawn facilities available at 31 March 2024 were as follows:

GROUP and COMPANY

Expiring in less than two years
Expiring between two and five years
Expiring in more than five years		 2024
£’000
2023
£’000
-
-
52,032
51,032
-
-
52,032
51,032

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

67

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

Financial Liabilities

The interest rate profile of the Group and Company’s financial liabilities as at 31 March 2024 was:

GROUP and COMPANY

Floating rate
Fixed rate		 2024
£’000
2023
£’000
2,500
40,104
195,636
195,636
198,136
235,740

The weighted average period for which interest rates were fixed was 17 Years (2023: 10 years), and the weighted average fixed interest rate was 3.90% (2023: 3.57%) including margins.

The fixed rate loans are for terms maturing between three years and 28 years at interest rates ranging from 1.00% to 6.69% 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		 2024
£’000
2023
£’000
28,213
55,500
34,593
20,294

Of the £62.8 million of capital commitments at 31 March 2024, £23.3 million (2023: £14.0 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.

68

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

Operating Leases

At 31 March 2024 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
2024
£’000
2023
£’000
36
-
6
78
42
78
21
-
18
55
39
55		 COMPANY
2024
£’000
2023
£’000
-
-
-
-
-
-
-
-
-
-
-
-

23 Pension Liabilities

GROUP and COMPANY
Social Housing Pension Scheme (SHPS)
Coastline Pensioners		 2024
£’000
2023
£’000
1,461
1,310
78
95
1,539
1,405

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 £9,800 (2023: £11,000). The carrying value of the liability of £78,000 (2023: £95,000) represents the discounted value of expected future payments discounted at 4.93% (2023: 4.83%).

69

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

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 2024 or on an accounting (FRS 102) basis

70

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

a)
Main actuarial assumptions used for the purposes of FRS 102:		 a)
Main actuarial assumptions used for the purposes of FRS 102:
31 March 2024 31 March 2023
% per annum % per annum
Discount Rate 4.93% 4.83%
Inflation (RPI) 3.08% 3.16%
Inflation (CPI) 2.79% 2.82%
Salary Growth 3.79% 3.82%
Allowance for commutation of pension for cash
75% of maximum		 75% of maximum
at retirement allowance allowance

The mortality assumptions adopted at 31 March 2024 imply the following life expectancies:

Life expectancy Life expectancy at
at age 65 age 65
(Years) (Years)
31 March 2024 31 March 2023
Male retiring in 2024 (2023: 2023) 20.5 21.1
Female retiring in 2024 (2022: 2023) 23.0 23.4
Male retiring in 2044 (2023: 2043) 21.8 22.2
Female retiring in 2044 (2023: 2043) 24.4 24.6
b)
Scheme assets:
31 March 2024 31 March 2023
£’000 £’000
Global Equity 620 119
Absolute Return 243 69
Distressed Opportunities 219 193
Credit Relative Value 204 240
Alternative Risk Premia 197 12
Emerging Markets Debt 80 34
Risk Sharing 364 468
Insurance-Linked Securities 32 161
Property 250 274
Infrastructure 628 727
Private Equity 5
Private Debt 245 283
Opportunistic Illiquid Credit 243 272
High Yield 1 22
Cash 123 46

71

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

Long Lease Property 40
192
Secured Income 186
292
Liability Driven Investment 2,530
2,930
Currency Hedging (2)
12
Net Current Assets 11
16
Total assets 6,219
6,362

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 2024 31 March 2023
£’000 £’000
Fair value of plan assets 6,219 6,362
Present value of defined benefit obligation 7,680 7,672
Surplus (deficit) in plan (1,461) (1,310)
Unrecognised surplus - -
Defined benefit asset (liability) to be recognised (1,461) (1,310)

72

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

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 2024
31 March 2023
£’000
£’000
Current service cost -
-
Expenses 11
11
Net interest expense 54
29
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
65
40

73

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

Defined benefit costs recognised in other comprehensive income:

Period ended
Period ended
31 March 2024
31 March 2023
£’000
£’000
Experience on plan assets (excluding amounts
included in net interest cost) - gain (loss)		 (740)
(4,894)
Experience gains and losses arising
liabilities - gain (loss)		 on the plan 16
10
Effects of changes in the demographic assumptions
underlying the present value of the defined benefit 71
15
obligation - gain (loss)
Effects of changes in the financial assumptions
underlying the present value of the defined benefit 192
4,475
obligation - gain (loss)
Total actuarial gains and losses (before restriction
due to some of the surplus not being recognisable) - (461)
(394)
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)		 (461)
(394)

74

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

e) Movement in deficit during the period:

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

Period ended
Period ended
31 March 2024
31 March 2023
£’000
£’000
Defined benefit obligation at start of period 7,672
12,024
Current service cost -
-
Expenses 11
11
Interest expense 369
330
Contributions by plan participants -
-
Actuarial losses (gains) due to scheme experience (16)
(10)
Actuarial losses (gains) due to changes in
demographic assumptions		 (71)
(15)

Actuarial losses (gains) due to changes in financial
assumptions		 (192)
(4,475)
Benefits paid and expenses (93)
(193)
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 7,680
7,672

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

Period ended Period ended
31 March 2024 31 March 2023
£’000 £’000
Fair value of plan assets at start of period 6,362
10,798
Interest income 315
301
Experience on plan assets (excluding amounts
included in interest income) - gain (loss)		 (740)
(4,894)
Contributions by the employer 375
350
Contributions by plan participants -
-
Benefits paid and expenses (93)
(193)
Assets acquired in a business combination -
-
Assets distributed on settlements -
-
Exchange rate changes -
-
Fair value of plan assets at end of period 6,219
6,362

75

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

The actual return on the plan assets (including any changes in share of assets) over the period ended 31 March 2024 was (£425,000) (2023: £4,593,000)

25 Related Parties

Non-Executive Directors

One Non-Executive Director who served during the year (2023: 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 (2023: £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 £7,024,232 (2023: £7,217,365). This is removed on consolidation in the Group financial statements. The total balance due to CSL from CHL at 31 March 2024 was £277,793 (2023: £119,176).

CCL was Dormant throughout the period to 31 March 2024 (2023: 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 £34,564,785 (2023: £26,343,076). This is removed on consolidation in the Group financial statements. The total balance due to CHL from CDB at 31 March 2024 was £174,950 (2023: £345).

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.

76

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

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% (2023: 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
2024
£’000
2023
£’000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 COMPANY
2024
£’000
2023
£’000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

A UK corporation tax rate of 25% (effective 1 April 2023) was substantively enacted from April 2023 and reversing the previously enacted rate of 19% .

This will increase the company’s future tax charge accordingly. Deferred tax has been calculated at 25% (2023: 19%).

Factors affecting the tax charge for the current year:

The current tax of £nil (2023: £nil) for the year is lower (2023: lower) than the standard rate of corporation tax in the UK of 25% (2023: 19%). The differences are explained below:

77

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

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
2024
£’000
2023
£’000
7,339
6,323
1,394
1,201
(1,385)
(1,167)
(9)
(34)
-
-
-
-
-
-
-
-
-
-		 COMPANY
2024
£’000
2023
£’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
2024
£’000
2023
£’000
-
-
-
-
-
-
-
-
-
-

The deferred tax liability at 31 March 2024 has been calculated based on the rate of 25%.

78

Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

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

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Docusign Envelope ID: E44D3F4D-8536-4EC0-A532-168849BC9F6A

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 2024.

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.

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