Company Registration No. 04912562 Registered Charity No. 1106969 Regulator of Social Housing No. L4435 MAGENTA LIVING Annual Report and Financial Statements Year ended 31 March 2024 Magenla Living Report and financial statements for the year ended 31 March 2024 Contents Page Board Members, Executive Directors, Advisors and Bankers Stralegic Report Report of the Board of Directors Independent Auditor's Report to Ihe Members of Magenta Living Consolidated Statement of Comprehensive Income Company Statement of Comprehensive Income Consolidated and Company Statements of Changes in Reserves Consolidated and Company Statements of Financial Position Consolidated Statement of Cash Flows Notes to the Financial Statements 3-22 23-31 32-35 36 37 38 39 40 Magenta Living Report and financial statements for the year ended 31 March 2024 Board Members, Executive Directors, Advisors and Bankers Chalr Ged Lucas Other Members Stephen Allcock Julie Booker Myles Edwards Ann-Louise Gilmore Susan Goodman Liam Kelly Michael Riley Mike Turner Ann-marie Spencer Paul McGrady resigned 7 November 2023 resigned 29 April 2024 Chief Executlve Debi Marrioll-Lavery Ex8cutSve DSrectors Chief Operating Officer Chief People Officer Chief Information Officer Chief Financial Officer Executive Director of Assets Executiv8 Director of Finance Andy Lomas Emma Adams Ann-marie Spencer Paul McGrady lan Thomson Ann Monk appointed 11 April 2023 appointed 1 January 2024 appointed 1 March 2024 appointed 19 Augusl 2024 resigned 24 June 2024 resigned 31 March 2024 Company Secretary Jamie Shaw Pagel 1 Magenla Living Report and financial statements for the year ended 31 March 2024 Board Members, Executive Directors, Advisors and Bankers Registered office Partnership Building 45 Hamilton Street Birkenhead CH41 SAA Web site magentaliving.org.uk Registered number Company Registration No. 04912562 Regulator of Social Housing Regislralion No. L4435 Charity Commission Registration No. 1106969 External Auditors Beever and Strulhers Statutory Auditors One Express 1 George Leigh Street Manchester M4 5DL Internal Audltors BDO LLP Central Square 29 Wellington Street Leeds LS14DL Sollcltors Anthony Collins Solicitors LLP 134 Edniund Street Birmingham B3 2ES Bankers and Flinders The Royal Bank of Scotland pl¢ 280 Bishopsgate London EC2M 4RB Page12 Magenla Living Report and financial statements for the year ended 31 March 2024 Strategic Report Background Magenta Living is a not-for-profil Registered Provider of Social Housing and registered Charit. W6 manage and develop social housing on the Wi￿al peninsular. As of 31 March 2024 Magenta Living owns and manages 12,805 homes and employs 587 staff. We are the largest affordable housing provider in Wirral, providing homes lo nearly 10 per cent of Wirral's population. We have invested around £200 million in our properties over recent years and have ambitious plans lo build over 1,000 new homes over Ihe coming years. We have a G1 Igovernancel I V1 Ilinancial viability} rating from the Regulator of Social Housing, This means that, as a business, we continue to operate lo the high8St standards of governance and financial viability. Everyone at Magenta is commilled lo provide excellerit customer services with a focus on delivering social value that makes a positive impact for our customors, colleagues and communities. Chairman's Foreword As we reflect on the past year, il is with ininiense pride and optimism that I presenl Magenta Livin9'S Annual Financial Report and Financial Statements for 2023124. The year marked a signilicanl miléstone for our organisalion, as we walcomed our new CEO, Debi Marriolt-Lavery. Bringing a fresh perspective lo the organisalion and mapping a clear direction of travel through the 'Magenla Reimagined, inilialive, Debi's leadership along with that of the niany new faces in her skilled and experienced senior team, has steered us towards a lulure that is cenlred on transforming our culture, improving the customer experience, and building communitiés. A key highlight this year has been lo redefine our Purpose, Vision and Values, and ensure that Ihey resonate with our colleagues, our customers and the communilios we serve. The work involved to create them encapsulated the best examples of collaboration and inspiration and combin8d those with the gravity and responsibility that comes with defining the core ol an organisalion. The oulpLII is an authentic sel of slalements, truly reflecling oiir core beli61s, and the genuine spirit of the organisalion. They have Ihe full backing and support of Ihe Board. Despile the many obstacles and challenges that housing associalions and our customars face, and while acknowledging the complex landscape in which we operate. we remain optimistic for the future, Our financial slatemenls endorse that optimism and show that we remain financially robust,, Turnover increased by £7.6m lo £77.2m. Operating Surplus of £5.2m from £2.Om in 2022123. Reserves Surplus of £151.6m. Another significant highlight of the past year has been the development of our new six-year strategic vision and plan.. 'The Road to 2030.. Be More Magenta,. The Board and l are excited about Ihis ambitious roadmap.11 sets a clear direction for our organisalion as we conlinue lo transform and make a significant impacl as an anchor organisalion for our communities across the Wirral and furlher afield. would like lo thank my fellow Board directors whose guidance and corrimilmenl has been instrumental in steering us through the challenges posed, the complex decisions made and in embracing the reawakening of Magenta Living through ils new leadefship and strategic vision and plan. Nexl year I look forward lo welcoming three new non-execulive directors to the Board and my deepest thanks and appreciation go lo those retiring Board members they will replace. Page13 Magenta Living Report and financial statements for the year ended 31 March 2024 Strategic Report I would also like to thank the Chair of our Communities Committee, Wendy Gooley. and her fellow customer representatives, who give their lime to provide important feedback, scrutiny and help towards shaping our services. As we move forward, l am confident that the foundations we have laid this year will propel us lowards a brighler and more prosperous future. Together, we will continue lo build on our successes and navigate the undoublable challenges ahead with continued delerminalion and resilience. Thank you for your continued support. Ged Lucas Chair of tha Board Chlef Executlve's Foreword When l joined Magenla Living just before the start of the 2023124 financial year, we promptly laiinched 'Magenla Reimagined,, a one-year Iransilional plan, to deeply understand our business, reimagine Olir operations and our services lo customers. and embark on a journey of transformational change. This initiative was all in pursuit of developing a new six.year Slrategic Vision & Plan, guiding us towards 2030. The journey has been marked by both challenges and successes. The narrative of this year unfolded in three pivotal chapters.. transforming our culture, enhancing the customer experience, and building slrong communities. These guiding principles have propelled us forward throughout the year and will continue to do so in the years lo come. Fostering Irusl, happiness, engagement. and wellbeing among our workforce was a clear priority and Ihe key lo generaling excitement and buy-in for our fulure Iraiislornialion. The introduction of The Happiness Index cultural assessment survey tool, in early April 2023 provided valuable insights into how our colleagues were feeling and eslablislied a benchmark for improvement. When wa repealed the survey al th8 end of the financial year in March 2024, we were 9really encouraged by th8 significant enhancement in our culture, notably our 97 /0 engagement score, in su¢h a short period of lime. Having last been looked al in 2018. Magenta's core purpose and vision slalemenls were refreshed and relaunched in September 2023 and feature prominently in our new Stralegic Vision & Plan. We are extremely proud of our commilmenls lo empowering people, opening doors to homes full of love, conirnunilies full of life, a world full of possibilities and lo doing the righl thing. Doing the righl thing means truly understanding who is behind the door of each of our liomes and recognising Iheir unique needs and circumstances. With an eye lo new Consumer Standards and Tenant Salisfaclion Measures, we completed a detailed customer profiling exercise lo understand who our customers are and ensure we continue lo provide the services they need. We introduced a new Customer Director role and began implemenling Salesforce as our Customer Relationship Management ICRMI platform. Additionally, we laLinched Video Remote Assistance lo support customers in their homes and improve repairs diagnosis. ensuring that we address concerns promptly and continuously improve our processes lo provide a positive experience lor everyone. In Ihe coming year greater digilalisalion and full roll-out of the Salesforce CRM will enable customers to pay rent or schedule their own repair appoinlmenls al linies that suit them. We have made new connections and revilalised relationships with the local aulhorily, key stakeholders, and partners across the Wirral. We have clearly demonslraled and firmly established our commitment, by signing a memorandum of understanding, lo being at Ihe forefront of the major housing and regeneration development projects on the Wirral. We're open for business and eager lo Page14 Magenla Living Reporl and financial statements for the year ended 31 March 2024 strategic Report hear from those keen lo collaborate with us. As an anchor organisation, we play a pivotal role in the community, driving economic growth, and foslering strong, sustainable partnerships that benefit everyone involved. Our legacy development projecl, Three Sails Point, faced significant challenges due to unforeseen ground issues that required extensive management, consullalion, and negolialion to resolve. Fortunately. we have successfully navigated these obstacles in year, and construction has now resumed on site. In lerms of building safely, our allenlion on discovering and eradicating damp and mould in our homes has remained high on our agenda. A new case management system was introduced in October 2023 enabling us lo robustly manage instances where we have been notified, or our stock condition surveys have highlighted its presence. We have also identified Ihree out of our eight high-rise buildings require the removal of external wall insulation. This crucial work began just al the end of the financial year. ensuring that we continue lo priorilis8 the safely and well-being of our residents. Magenta won several awards in 2023124 including.. Northern Housing Awards - Team of the Year.. Income Team; Housing Technology Awards Digital Transformalion Solution.. Salesforce Damp & Mould Case Management., Direct Works Awards- Inspirational Employee Award & Customer ExperienGe Award., Travis Perkins Community Award - Community Hub Award.. MagenlaNoi¢e ol Egremonl Comniunily Cenlre. Alongside all we have accomplished this year, perhaps our most notable achievement is thè finalisalion of the corporate plan. The 'Road to 2030.. Be More Magenta, Slralegic Vision & Plan outlines our ambitious roadmap for the next six years, from 2024 10 2030. This comprehensive plan, developed through a collaborative effort involving colleagues, customers, and the Board, sets out our giiidin9 principles, strategic focus areas, and long-term goals. The vision emphasises Iranslorming the company culture, improvin9 Customer experience, and building strong communities. 11 also addresses the challenges posed by the evolving political and economic landscape, the need for sustainable and affordable housing, and the imporlance of innovalion and digital transformation and growing our products and services. The plan includes specific strategic goals such as buildii)g 1,000 new homes, achieving high customer salisfaclion levels, and investing significantly in existing homes and enèrgy reduction inilialives. With the appoinlmenls of a number of new executive and senior directors in year, this influx of new lalenl brings a wealth of experience and innovative ideas, which will drive us forward. I would like lo end wilh a final note of Ihaiiks lo niy colleagues who so warmly welconied me and continue lo be right beside me in truly making a difference for our communities across Ihe Wirral, they are a lalenled, fun-loving, spirited bunch and together we're aiming high, dreaming big and aspiring lo achieve great thingsl Page15 Magenta Living Report and financial stalemenls for the year ended 31 March 2024 strategic Report Business Area Activity Business Transformation Magenta's Change Porlfolio seNes as Ihe means lo transform Ihe organisalion. Current projects include implementing a Customer Relationship Management solution lo give a unified view of customers, enhance case management, and innovate customer engagemenl. In 2024, Magenta plans to launch an analytics hub that will consolidale data from diverse btjsiness sources, providing a foundation for inlograting external data and offering advanced analytics capabilities. Additionally, a new cloud-based Finance Sysleni will be deployed in 2024, allowing Magenta lo streamline processes and boost financial analylics. An important focus for the upcoming year is establishing a largel operating model lo supporl the rollout of Magenta's new business strategy. Magenta continues to advance ils IT capabililies with a strategy aimed at ulilising modern technology platforms and cutting down the number of IT systems. Their approach focuses on driving efficiency and enhancing customer experiences through cloud-based technologies. The redesigned data stralegy ensures innovativ8 dala solutions are in place lo fully leverage their extensive data resources. Assets & Compliance Magenta recognises Ihal safe and secure housing is a fundamental human right and remains committed to ensuring that our customers have sale affordable and sustainable homes whilst navigaling the headwinds within the social housing seclor and aniidsl the evolving political and economic climate. Repalrs and MaSntenance: We have sèei) a significant increase in the volume of routine mainlenaiice jobs and their associated costs. Although the overall expenditure was lower than the previous year, the responsive repairs budget for 2022123 was overspent. This was due lo responding la approximately 3,000 more jobs than budgeted and the increased cost of some nialerials caused by inflation. The focLlS on damp and mould has also been a significant contributor to the costs in this area, We are continuing lo strengthen the area ol assets and compliance with the immin8nl appointment of a Chief Compliance Officer. Throughout 2023124, we havè also made significant strategic decisions, stjch as removing high-rise cladding, as part ol our conimilmenl lo keep our tenants safe. Stock Condltlon Survey: Magenta aims lo achieve 100°/o stock condition data that is no more than five years old, an increase from the previous largel of 80%. This includes energy performance assessmenls. scheduled lo be delivered from 2024 10 2028. Alongside this, Magenta Living employs an Asset Performance Evaluation IAPEI niodel lo idenlify financially poor-perlorming properties. The APE model calcLilates the income vs. expendilLire over a 30-year period lo determine the Nel Present Value {NPVI. This model allows us lo combine financial data with social objective data for a comprehensive view of asset performance. Proactive Asset Management Strategy.. Magenta operates a robust Proactive Asset Management Strategy. using data lo niake infornied decisions about future investments in our stock. The team also provides a safely-focused service lo customers and promotes an inlegraled approach lo delivering value for money in maintenance and improvement services. This ensures that Magenta's homes are well-mainlained and safe for residents. Magenla is continually investing in ils existing homes lo ensure they meet modern standards and expeclalions. The company has updated the Nel Present Value of each properly lo beller understand Ihe balance beiween inveslmenl needs and returns. In response to the National Housing Federation's efforts to develop an updated, practical Decent Homes Standard, Magenta is prepared to identify the Page16 Magenta Living Report and financial statements for the year ended 31 March 2024 Strategic Report financial resources required for future investments early on. Among the six priority compliance areas, special attention is given lo fire risk assessments, electrical inslallalions. and gas safely measures. Magenta's Climate Change strategic framework commits the organizalion to becoming a Zero Carbon Housing Association by 2050. Over the next five years, it plans to.. Implement a strategic delivery framework focused on fabric-firsl improvements. Provide detailed carbon literacy training across the organizalion. Reduce fuel poverty by ensuring that all of the Group's homes achieve an EPC rating of C {SAP69+1 by 2030. Empty Homès: Magenta continues lo focus on delivering improvements in this area. Average relet limes continue lo iniprove and empty homes rent loss reduced from 1,33 /0 10 1 .21 /0. Bulldlng S8rvlces for Thlrd Parties and Lease.owners'. Th6 Group provides building seNices lo various third parties and lease-owners. The income for the year was £230k12023'. £570kl, yielding a surplus of £34k12023.' £75k}. Compliance: Magenla Living priorilisos safely in asset managemènt and has crafted investment plans lo follow lop industry compliance slandards. The company proniplly procures compliant contracts to ensur6 consislenl quality, cost efficiency, and bèller customer service. Development and Regeneration The construction industry facès economic shifts, with slabilized high prices affecting material and labor costs, making viablè proiecl production more challenging Tho primary risk lo development remains contractor insolvency. Magenta is recovering from such impacts, and continues lo deliver affordable housing, aiming for 1,000 new homes by 2030. In 2023124, Magenta Invested £16.6m, including a £4.2m grant from Homes England, in developing homes in Wirral and Cheshire East. We built 187 new homes for various affordable housin9 oplions and have 94 units in progress and 128 stalled due lo contraclor insolvency, sel to remobiliz6 in 2024125. Magenta Living's Development strategy aims lo provide customers with new homes and a variety of tenure options despite ongoing challenges in the construction industry. While the program faced Gonlraclor delays, insolvencies, and increased costs, in 2023124 we were able lo successfully con)plete 187 new homes, against a largel of 215, and started 114 further unils, against a largel of 159. Magenta is exploring Modern Melhods of Construction and energy efficiency, reviewing building specifications lo meet the Future Homes Standard and engaging with customers for design input. We are partnerin9 with new and exciting local organisalions like Starship to develop long term sustainable homes using new lechnologies and modern methods of conslfuclion lo deliver on Nel Zero Carbon targets and providing highly energy efficient homes for our cuslomers. The development strategy will be updated to align with Magenta's growth, regeneration plans, and provision of specialist accessible housing. The Board maintains a balanced risk appelile for exisling and new home programs bul is caiilious about further cornmilmenls lo building homes for sale due lo economic downturns and associated risks. Rising inflation, skilled labour retention issues, and new building regulations requiring higher energy efficiency have made it diff icult lo sustain value-for-money efficiencies. The Development team addresses these challenges with rigorous financial assessnienls. value-for-money research, and cost controls. Page17 Magenta Living Report and financial stalemenls for the year ended 31 March 2024 Strategic Report To manage risk and financial exposure, Magenta has reduced the volume of land-led packages in ils pipeline. Looking ahead, the development strategy will focus on the Wirral area, aiming for regeneration, growth, and building a pipeline for new homos over the next six years. Wirral Council's Birkenhead Regeneration Framework aims to Iranslorm Birkenhead and the 'left bank, of the Mersey. Magenta, as a key inslilulion in Wirral, signed a memorandum of understanding IMoU} with Ihe Council in October 2023 to outline their collaborative efforts on this project. The Mou establishes the terms and conditions of their partn8rship to enhance place-making in the Borough, aligning with their corporate objeclives. The collaboration focusas on.. Developing, maintaining, and managing affordable housing. Addressing the Borough's housing needs. Supporting the Birkenhead 2040 Regeneration Framework and the Left Bank pro9ramm8 through shared vision and partnership. Promoting a sustainable, clean-energy Borough responsive lo the climate emergency. I mproving Olilcomes for children, young people, and families. règardless of background. Fostering a prosperous, inclusive economy by supporting businesses and creating jobs and opportuni118s for all. Wirral Council has demolished two annex buildings, next lo the grade 2. Wallasey Town Hall and Magenta is undertaking a feasibility study on building affordable housing on both siles. The Magenta Developmènt and Regeneration Group co-ordina16s Magenta's approach to Assets and Development and feeds into Board's Asset and Development Committee. This group co-ordinates considerations relevant lo our asset and development progranime for business areas such as housing management, repairs and maintenance and community teams to ansure a joined up, ¢ompr6hensive approach lo ensure all financial implications are identifiéd oarly, are affordable within the business plan and align with the priorities outlined within 21 Wirral neighboufhood plans. Sales Summary This year, we sold 20 properli8s through the Right lo Buy program. down from 54 last year. We have an agreement with Wirral Borough Council for sharing the proceeds. Out of the £1,115k we received (conipared to £2,517k last year}, we paid £411 k lo the council, resulting in a surplus of £569k {down from £1,362k in 20231. For the Righl lo Acquire scheme. w8 sold 6 properties this year, a decrease from 21 last year, pulling in £638k Iversus £2,392k in 20231 and crealing a surplus of £554k {down from £1,971 k}. We didn't make any oulrighl sales this year, and there were no units under development by year-end. However, we saw a rise in first tranche shared ownership sales with 30 this year, up froni 10 last yeaf. These sales brought in £2,454k (compared lo £816k last year} and generated a surplus of £446k (a big jump from £1k in 20231. We also had other property sales, including shops and auction sales, which provided us with £459k in proceeds lup from £60k last yearl and £435k in profits {up from £55k in 20231. Page18 Magenta Living Report and financial statements for the year ended 31 March 2024 Strategic Report Customer Magenta is focused on enhancing customer experience by transforming its business. Using customer data, il has sought to understand ils customer base and ensure services meel their needs, Through independent research, Magent8 has gained valuab18 insighls into customer segments, molivalions, challenges, and aspirations. This information will shape future service design and improve resource efficiency. Additionally, il collects transactional customer salisfaclion data to ensure seNice quality. strategic survey work assures that new homes are designed to meet futur6 demands. Magenta actively encourage tenants, involvement in decision-making by promoting different ways of gelling involved {Magenla Communities Committee, Magenta Connect and Compass). There are clear reporting arrangements between these customer forums, the business and the Board. Many of Magenta's cuslomers are struggling with the rising cost of living, 27 /0 of which live on a household income of £1 Ok or less. Magenta acknowledges its role in helping Ihese customers. These financial difficulties endanger not only their health and well-being but also Ihe company's finances as customers struggle lo pay. Additionally, the transition from legacy benefits lo Universal Credit, continuing through 2024125, poses a strategic risk for Magenta duè lo potential rent arrears and bad debts. Magenta offers varioLJS support seNices lo assi51 cuslomers in financial hardship with paying rent and maintaining tenancies. Their effective customer engagement has kept rent colleclion rates high, and robusl controls allow early idonlificalion of intervention needs. In 2023124, the team helped customers secure an extra £2.67m in benefils and provided £125k for rent relief. Homelessness and rough sleeping continue lo be problematic, with numbers increasing nalionwide. Magenta has addressed this issue by collaboraling with Liverpool City Region's (LCRI Conibined Authority and Properly Pool Plus, and by backing the Region's Housing First inilialive, wliich aims to house and support individuals with multiple and complex needs. In the coming year, Magenta wlll evaluate ils Letting Policy lo ensure il nieels the diverse hoLising needs preseiil in the comniunilies il serves. The Board has partnered with Your Homes Newcastle lo offer affordable furniture. This service requires minimal resources from Magenta Living bul offers value, preventing 'furnilure poverty, and ils impacts. Payment cali be niade via Housing Benefit, Universal Credit, or self-paynienl, with 983 packages taken up by 31 March 2024 12023.. 647). In the 2023124 financial year, this service generated a surplus of £71 k 12023.. £60k}, which will be reinveslad in Magenta Living for future inilialives. Complaints The organizalion is undergoing a Iransfornialion journey expected lo last until 2030, with a focus on placing customers al the core of our mission. Engaging with residents is essential lo adapt our services lo Iheir needs and addressing their complaints is key to our ability lo keep lo our commitments to support our tenants. We received 1,175 stage 1 complaints of which 962 were resolved aiid 184 were cancelled. 83 stage 2 coniplainls were received with 81 being resolved. 82.7 % Stage 2 Complaints resolved within Housing Ombudsman timescales. 95.5/0 Stage 1 Complaints resolved within Housing Ombudsman timescales. Page19 Magenla Living Report and financial slatements for the year ended 31 March 2024 strategic Report During 2023124, the lop five teams or subjects central lo our complaints were.. Damp & Condensation 145 complainlsl - Il's common to hear complaints about damp and condensation, We understand the problems these issues cause in many homes and are commilled lo working with residents to fix them Quickly. Early identification is essential for addressing problems. restoring normalcy, rebuilding trust, and learning from the situation. Property Care Sub-Conlraclors152 complainlsl - Due lo the extensive range of repairs we handle, external contractors frequently help us out. We Ireal these leGhnicians as part of Magenta Living, addressing complaints internally. The results of thesé complaints guide contract management and ensure contractors align with our mission, vision. and values. Contact Centre (85 complainlsl - Our 2417 contact centre manages around 3,000 customer inleraclions weekly and acts as the main contact point for various tasks and inquiries. Resolving complaints helps pinpoint process gaps and training needs for individuals or leanis. Gas Repairs1168 complainlsl - Undef the maiiagemenl of Magenta Living's conipliance lean) along with our reliab18 contractor Liberty Gas, significant measures are taken lo maintain proper heating and hot watèr systems in all customer residences. Nonelheless, issues can arise. Both teams are dedicated to examining these problems thoroughly, identifying their rool causes. and learning from these events lo avoid future complications. Responsive Repairs1253 complainlsl- Our internal Responsive Repairs Team, which handles a variety ol Irades, conducts a subslanlial number of repairs each year. Regrellably, there are occasions when these efforts do not meel cuslomer expeclalions. The data Collected through complaints and othèr forms of feedback enables us lo identify problem areas, allowing us to focus on improvements lo beller the customer experience. Soclal Value Magenta utilises the HACT (Housing Assoclatlons, Charitable Trust) Wellbeing Evaluation methodology and calculate figures using the Social Value Bank. regarded as an industry standard, In 2023124, Magenta's community regeneralion activities generated £30.2m of social value in local neighbourhoods, compared lo the previous year's figure of £23.6m. Magenta shares an Annual Social Value Slalemenl with its customers each Seplember as part of ils Annual Reporting framework. Treasury & Finance In 2021122 Magenta relinanced, securing £137m in funding provided by Nalwesl lo support ils investments, carbon neulralily goals, and developmenl arribilions. As of 31 March 2024, £91.4m of Ihe lolal facility was drawn, with the reniaining amount available under a 5-year Revolving Credit Facility {RCF} lo be used as needed. Cash Flow and Llquldlty The nel cash inflow from operating activities before interest expenses was £14.4m {2023'. £9.3mJ. Bank balances and short-lerm investments stood al £8m12023: £14.Iml al the fiscal year-end. Covenant Compliance The covenants relevant lo the loan agreement include.. Interest cover., Gearing: Asset cover. As of 31 March 2024, thè Group remained compliant with all covenanls. Page | 10 Magenta Living Report and financial slalemenls for Ihe year ended 31 March 2024 Strategic Report Magenta has revised ils business plan, considering recent internal and markel-driven challenges. The company updated its development and investment slralegies based on the most current information lo guide ils assumptions. This adjuslmenl comes amidst a rapidly evolving economic landscape where interest rates and inflation have significant effects across the plan. Payment of crodltors In line with government guidance, Magenta's policy is lo pay purchase invoices wilhin 30 days of receipt, or earlier if agreed with the supplier. 11 will comply with all of the requirements of the new Supplier Payment Practices and publish ils supplier payment performance accordingly. Payment performance within 30 days for the financial year was 63.10. We recognise this is below our expectations and an improvement plan has been implemented to improve this process. other Income The Group's lellings include garages and shops. generating £1,075k12023.' £1,021 k) in income and a surplus of £696k12023'. £706kl, while Bamboo Eslales LLP produced £864k12023'. £837k} in exlernal income, yielding a profil of £460k (2023.. £418k). and was accounled for as a subsidiary within Magenta Living as of 31 st March 2024. Other non-social housing aclivilies, such as leasing properties lo Bamboo Eslales LLP for market renl with lease charges of £305k (2023.. £313kl and a surplus of £274k12023'. £259kl. along with income from aerial rnasls and various scheme funding, contributed notablè incorne streams during the year. Bamboo Estates To generate surpluses and capacity for investing in new homes and community regeneration, the Board established Bamboo Eslales. Bamboo Estates, a joint venture between Magenta and Torus62. was officially dissolved in March 2023. with Torus amicably withdrawing from tha partnership as th8 joint venture no longer aligned with ils business aspirations. Despite Ihis, Bamboo Eslales, now operating as a parlnership between Magenta Livin9 and Wirral Partnership Homes (Development) Lin)iled, a subsidiary of Magenta Living remains a viable enlily, managing 113 properties leased to Bamboo from Mageiila. Bamboo now also benefits from Rent to Buy property lellings and management, a new income stream that is expected lo grow as the development programme accelerates. A review of Bamboo Eslales will be conducted in Sunimer 2025 to consider rebranding, expanding the PRS lo increase profitability, and enhancing the qualily and competitiveness of customer service and offerings in the private seclor markel. Bamboo has commilled lo reinvesling all profits received from Bamboo into internal subsidies for tho development of new social properlies on Wirral. The £460k generated in 2023124 will be allocated to Magenta Living lo support this inilialive. Procurement In 2023124 Magenta procured over 50 contracts with a combined lolal contract value of £25.6m. Market conditions as a result of inflation and cost of living have meant that there have been significant challenges with rising inflation and cost of living challenges, price increases and shortages in some product areas and in skilled trades that has had had a negative impact on supply and demand. Where Vfm cashable savings were possible, a lolal of £900k savings were achieved which includes key projects like SHDF, low rise investment works programme and stock condition survey conlracts. Magenta now also has a Commercial Director lo ensure a rigorous approach lo conlracl standards and value for money in this area going forward. Pagel 11 Magenla Living Report and financial statements for the year ended 31 March 2024 Strategic Report Sustainability and Environment Magenta's Climate Change Framework is dedicated to reducing ils carbon emissions and enhancing clirnale resilience in housing, while sustaining eco-friendly practices across offices and stores. Magenta commits lo ongoing learning, adapting, and implementing innovative methods to improve its sustainability efforts, with the goal of becoming a leader in the housing sector. As reaffirmed last year, our dedication lies within a 30-year, three-phase strategic framework largeling an 80 /0 ieduclion in carbon usage by 2040 and achieving nel zero by 2050. On a corporate level, significant actions have been undertaken in three key areas.. People, Services, and Standards. In the fillh year of SECR (Streamlined Energy and Carbon Reporting) feporting, C02e emissions have dropped by 350.4 tonnes, a 15010 reduction since the base year (April 2019-March 2020), although less than previous years due lo increased transport use. Major conlribulors include cuts in natural gas of 24 /0 and electricity of 15 % . We are proud holders of 'Gold' accreditation from SHIFT for our environmental accomplishments. Magenta has allocated additional resources to establish a robust and capable suslainabilily team within the organisalion, This team leads and collaborates with all partners on every aspect of suslainabilily Magonla is also among the few regisl8r8d providers lo achieve the national SHIFT Gold slalus, distinguishing il as a leading sustainable housing provider. Additionally, Magenta has been nominated for an ASCP award for 'Nel Zero Inilialiv8 of the Year. and a Northern Housing Award for 'Best Relrofil Initiative,. These recognitions are allribuled lo Ihe company's efforts in fostering a decarbonisalion culture through ils offices, operalions, and employee engagement. Magenta has achieved the Bronze Carbon Lilerale accreditation after training several Board members, the Executiv8 Team, and colleagues. Over the nèxt two years, Magenta aims lo achieve silver accredilalion. The company is also rebranding ils 'Climale Champions, and the 'Climale Chronical., This 'Green Team, will be the voice for all things sustainability, encouraging collaboration amoi)g employees and customers to advance its 30-y8ar plan.Olher inilialives re18vanl to our cliniale agenda include.. Our Assets In 2023, Magenta installed External Wall Insulation on 98 home5 Ihrough the Government's Wave 1 Social Housing Decarbonisalion Funding and an additional 40 homes under Wave 2.1. For 2024125, the plan is lo use the £1.6ni Wave 2.1 grant lo complete inslallalions across 121 honies in Birkenhead North, Bebington, and Woodchurch using various onergy efficiency measures. Magenta will also apply for Liverpool City Region Wav8 3 funding lo relrolil around 500 properties. Additionally, an EC04 pilot will be launched with plans lo extend Ihis funding model. Fleet Vehiclè Transport Emission Reduction After collaborating with the Energy Saving Trust, Magenta has developed a five-year plan focusing on environmental vehicles. Initially, they installed Eleclric Vehicle chargers at Parliiership Building and Sl Marys Gale. Howèver, due lo the impact of Covid and the Russia-ukraine war on the motor industry. they extended vehicle leases and will complele fleet replacement by April 2024. The new fleet will be entirely EU Cal 6 with 50/0 eleclric vehicles. Agile Working and Business Travel Magenta has inlroduced a flexible 'hybrid' working policy, allowing colleagues lo work from home. This has reduced carbon emissions by culling down on business travel and commute mileage. In addition, aclivilie5 relating lo travel are limited lo company cars and employee-owned vehicles for business use. Page | 12 Magenta Living Report and financial statements for the year ended 31 March 2024 strategic Report Offlce Decarbonisation Options Magenta is exploring all decarbonisation possibililios al Partnership Building and St Mary's Gate. This includes examining energy use, venlilalion, green procurement, IT, commuting praclices, recycling (food}, and water consumpt￿0￿. The goal is lo fully decarbonise in.house services over lime. Magenta has already significantly cul energy use in 2024125 by using timers for lighting and healing in office buildings, a practice sel lo extend lo community buildings soon, Addilionally, printing has decreased du8 to the digital shift, lowering paper, ink, and printer use. They've also installed 115 low-energy LED lights in office spaces. Quantification and reporting methodology This report follows the HM Governinenl Environm8nlal Reporting Guidelines, including streamlined energy and carbon reporting guidance from March 2019. Emission reporting uses the 2023 UK Government GHG Conversion Factors for Company Reporting. The reporting boundary aligns with the business's financial boundary, covering mandalory scope 1, 2, and 3 emissions, as well as optional emissions from refrigerants 8nd electricity transmission and distribution losses. No data have been excluded,. however, an estimated 16 % of electricity consumption has bean included due to unavailable invoices. The base year spans April 2019 to March 2020, with gross reported emissions amounling to 2,329 tonnes of C026. Target setllng & responslbllitles The objective is lo reduce gross scope 1, 2, and 3 C02e emissions per properly by 20/0 annually. with a performance reduclion of 10 % reported this period. Gross global scope 1 and 2 emissions in lonnes of C02e per number of porlfolio properties serve as the slandard n)olric. Inlensily metrics are compared yearly, and no carbon offselling activilies were recorded during this period. Value for Money The Board of Magenta Living approved ils Value for Money IVIMJ strategy in March 2021. The strategic approach recognises that Vfm is not just about culling costs,. it is about understanding Ihe 'Value Chain,, and oplimising the Economy. Efficlency and Effectiveness of everything the company does. This is acliieved by considering Vfm across all elemenls of the business including ils busiriess plan and budget, ils BAU aclivily such as commercial conlracl negotiations and ils forward- looking activity including service improvements plans and Iransfornialion Strategy. To support the optiniisaliori of the Value Chain, magenta has iniplemenled Policies and Principles which includes detailing activities which the company will and won't consider in ils drive lo deliver improved Vfm. These principles recognise the importance that differenl elemenls of Ihe business play in ensuring we are able lo achieve value for money and includes consideration of or strategic objectives, improvement plans, our colleagues and our assets and their suslainabilily. We also measure the value generated from ils communily-based aclivilies which for 2023124 was £30.2m. The Regulator of Social Housing's Value for Money Standard 2018 sets out ils required outcomes and specific expectations of registered providers and their approach lo Value for Money. Magenta Living has completed a sell-assessmenl against the Vfm Standard, and gains assurance that Vfm is being achieved from a variety of sources including.. Regular review of Vfm objectives, largels and performance., Strategic discussions as lo optimum use of resources in delivering the objectives., All Board reports requiring consideration and evidencing of Vfm implications of decisions Pagel 13 Magenta Living Report and financial statements for the year ended 31 March 2024 Strategic Report Executive quarterly monitoring of procurement activity and savings., Production of an annual social value report and Vfm stalernenl. Performance against the RSH {Regulator of Soclal Housing) Vfm Metrics Magenta set itself ambitious target metrics for 2023124. While many ol the acluals against the range of metrics have not fully met their largels, there has been a general positive direction of travel from previous years which is an encouraging achievement given the significant external factors impacting the housing sector. The following tables provides fuller details of Magenta's performance against the RSH'S Vfm metrics and future plans and largels. Curr•nt P•rforni*n 2023r24 2023124 Fonyard Look 2025126 2022123 S•ctorl P••r Oroup 2024125 2026r27 F¢a8U T•rg•l M•trlo Porformone• Budg•U Aoluil Budg•V Targot F¢aiU Targ•1 R•lnv••tm•nt % 6.49% 6.70h I 9.4% 22.86% io.oo% 16.40% 15.58% 15.99% N•w 8upply % 0.27% 1.3%1 1.0% 1.SO% 1.30% 0.65% 1.31% 0.88% Now 8upply % {Non.ioclal 0.11% 0.0% o%io% 0.0% 0.15% G••rfng % 31.72% 45.3% 1 40.5% 38.00% 33.00% 38.72% 39.77% 41.89% EBITDA MRI Ilnt•r••t ¢ov•r) 124.48% 128.4%1 117.0% ie1.74% 151.70% 164.15% 167.12% 203.61% Headlln• 8oclal Hou•lng Coll P•r Urblt £ Op•r•llng Margln So¢lal Hou$lng £4,958 £4,5881 £4,520 £5,544 £5.651 £S,B46 £5,935 £5.309 -5.94% 19.8%1 14.8% 0.70% 3.00% 8.98% 9.88% 11.62% Oporatlng Marqln ov•r*ll %1 4.54% 18.2%1 11.6% 4.10% 3.00% 11,40% 11.98% 13.49% Return on Capltal Employed O(Ir oper8ling mèrgin is adversely 8ff8cled by oiir c(Irr8nlly componenl capilalis8lion policy. 2023124.. 66.4tsA 12022123.. 11.4/) Goinpar8d lo seclor averages in excess of 50/¢ and 0ft8n 5ignificanlly higher. 11 is oiir inlenlion lo bring this inlo lin& with th6 seclor. 2.801. 1 3.0°/. 0.53% 2.00% 0.70 10 2.45°/. 3.15°1 Peer group is based on orgaiiisBlions wilh a simi18r slrucliire, location and siz6. Page | 14 Magenta Living Report and financial statements for the year ended 31 March 2024 Strategic Report Performance against internal Vfm metrics The following tables provide evidence of past performance and plans for improvement against Magenta's internal Vfm targets. Commentary on the performance of each metric is included within the table. M•iflC b. 2022123 i 2028124 4f.IIT,2023124 TArgèt' £3,945 .2024125 T•rg¢l CoinDi&Th15 4nd luluio plans Empty Hom•8. Repalr Co#t £4,004 £5,893 £5,400 Incl. VAT Th8 Increase cost por unll relates to th ¢r8888d 18V¢t of *(Kk carried out, •lthor duo lo th8 condluon In whkh tho vold h re¢elv8d fmm oulgalng tsnanl or worfrfs requlred lopa88 lettBbkè8t8nd8ré. For2Q24125 we h8¥0 Id8niin8d a budget for onhan¢8m8nt work8 80 we ¢Èn have d8ar8r pleturo on the $p8nd to t8k6 vold rmp8rty to a lettoble propety. Th numb8r of vdds untts kl 8nd th8re w8$ no do18y• v I89u￿ In Com le vdd work&. Due to knprov8ment& In &mpty homo• rfomiance th¢ludlng r•ducod rolel 11rn8s, trmpty hom¢$ rent Ic*8 ho8 reduc¢d from pMvlou8 yeor. Athough perfomi4nc8 W81 obo¥e larggl we h8v• 6•8n Improvgm8nts In ompty homgj nt 1088 from Ihg pr8vlou$ yèar. Th• Ind¢JiWal 8Ctkn 81 the Start el 2023124 nd thè MIIAnce on oub Con1￿10r• r98ylted In y•or •nd pgrformJne• ol 1.21% Perform8nce 18 behlnd tsrqel due to prted￿sIn9 Iho comple15on of hhtor proj￿ts. Bofore yoar end w• had offern gcceplèd on 101 $10610ff th• Shell acqui5ilions which Brtr beglnning lo prooress Ilirough the approvals precess and slaris on sile ar8 lor¢¢asl In the business Pèrfrmance 1$ bohlnd targ81 éuo to d8lay8 91 one Jlle of 28 hernes rosulllng Irom contractor ca8hnw4 dIffic￿lI•S and drolnag? r8rn8dlillon works. Wo a undertaklng lortnlohlty valu8llon8 t¢ a•$S8l with Ihg ¢ontr8clorf6 Ourlargelwcrklngdoy&logtlorBbs8nc• In 2023124 wa8 8 tl8ys wllh 8 le18r8nc• of 8.5. Our ever8geworklng Oays I￿tIor that Pe￿(￿1 wa8 7.8 dayi ko•plno u wlthln tsrgol. Our abstrn¢e torqel lor 202412515 3.5% 18 day51. As wo w)Unvfr lo mBn89• obsenc8 In 8ceord8nce ￿th our ￿71￿8¥ and procedures we Ar6 hopeful to 8t8y under t8 etB &ar. EPC roi)orling has proved difficvlldue lo chiEngps in downloads Irom 11)e GovÈmmanl EPC register making obtaining accufale live InlormalioTI hard We have now had coiilirmalion Ihal the reslriclion5 put in plgcé by governnient Empty Home$ Rent L088 1.33% 1.09% 1.21% 1.00% Davelopmonl start• (now, 1000 unlt programmo),. 159 114 196 D•v•lopmonl ¢ompl•llon$. (Exlstlno programmo) 38 215 187 82 7.8 day8 8.0 days 7.8 day8 3.5% Ongolny 8toff. 8l¢kn¢88 lévels at bglow pegr group averag• 112 180 105 250 Number. ol." exlsllng hou81ng unl1$ at EPG ltsvel C or above.. 1111 We 8r& also behind Post EPCS l)eing lodged lor our completed programmed work. WÈ are awailin9 an addition31 Jf1 post EPCS from the loll insulalion prograninie ?nd SHOF wavtr 1& 2.1 A51houg1i the perfoiniance is below Ihe gl ui8. this does nol accura181 Page | 15 Magenta Living Report and financial statements for the year ended 31 March 2024 Strategic Report loureurrenl kyJ$￿on.We8Tety1n9 to obtsln Infornotlon from Llb8rty Go1 on whlch prC*￿e5 have had o modern. moro efficSenl bollerlnstalled wnhln thelr property. To date, w• hav8 nol baen ablo to pKce88 th18 Inf0ma￿On In bulk frorn Llbety. 8K8use of Ihl$ we unnot COM￿8¢* Post EPCS for the80 propertles to Include Ih8m In th• Pgrforrnanc•. 86.8% 87.1% 78.7% 80% Cuitomor oaU6f8¢Uon ￿th seNIth8 was 78.7% agaln8¢ 8Th 80% tsrgel. Fu tho TSM ￿enant $al￿fac￿On M¢8suresl rvey we usod en extern81 provldef lo ensura 8 lovel ol Indep8nden¢o. thls $uN&y W88 C8frfed out In-hou8e 8¥ a l818phono 8urvoy. For Ihls yo8rf8 return 80% wèm ¢41rf￿ out nllno and 8$ 8 result we h8v6 •e8n an [m￿￿Ons￿lI$18¢l1W levels. Tho rn8uIts of Iho 5UIV8y ind the In deplh cu8tomér 11ggrnentallon dat8 wlll allow UB to red¢slgn our i•￿¢0$ and ghould result In an Incr0889 In 88llsf8cllon In 2024125. $8tlsf8don Improvemenl t8rg818 hov• been 481 to do1￿0r Incrernenlal Improvgrnent In ¢réor lo aGhl¢va our overall $all$factlon larg•l wllh thg 8eNk88 M898nta Lmno Pmvldo$ 01 90% by 2030. Customer •allBf*ctlon wlth 8eThlcè$ provldBd by M8g•nta Llvln (STAR 8urvoyl 87.3% (hom ovor8111 90% 70.9% {well molnlolnéd) 73.6% {6alel 75% Iw811 malntolned 80%18918 Cu8toinor 8all$fa¢tlon wlth th• hom9 (STAR 8urnoy) Cu8tom•r. ,8allBfactlon wlth p081tlvo . ¢onlrlbu¢lon to lh• N•lghbourhood ITSM 8ur¥oyl 83.1 ¥. 85Y. 55.3Y 70°/. Sallslaclion iniprovemenl larg&ls have been $01 lo deliver incretnenlal Improveni¢ni ii) ord8f lo achieve our $ervic8s Magenta Living Providas ol 90 10 by 2030. strategic Risk Magenta is very positive about how the organi5alion is moving forward and il has a solid busii)ess plan bul recognises the risks inherent wilhin the sector and the wider economic and geo-political environment. The organisational focus remains firmly cenlred on ils customers and ensuring Iliat it can support them through these challenging limes. The Board is ultimately responsible for risk management and internal control arrangements al Magenta Living, ensuring appropriate arrangements are in place and monitoring the effectiveness of these. The Board approved the currenl Risk Appelile and Risk Management and Assurance Framework in May 2023. The Risk Appetite delerrnines the level of risk that the organisalion is willing lo lolerale in delivering its Corporate Plan and objectives. The framework sets out the overall risk and assurance approach and the roles of Board, Audit and Risk Committee and senior management lo manage, monitor, report and gain assurance on the effecliveness of ils risk management and assurance activities. Through ils scheme of delegations. the Board has delegated authority lo Ihe Audit and Risk Committee to oversee Ihe effectiveness of risk management and internal control. The Committee scrulinise the risks recorded on the strategic risk register by management, agree and monitor the delivery of the annual risk based internal audit programme and internal assurance lesling activities. Page | 16 Magenla Living Report and financial stalements for the year ended 31 March 2024 Strategic Report The Board receives quarterly reports from the Committee, tO9elherwilh the minutes oflhe meetings. lo provide assurance on the effectiveness of risk management and inlernal control arrangements. Risks and opporlunilies are continually monitored and evaluated,. Ihis regular oversight enables management and the Board make informed strategic decisions and ensures Magenta Living adapts lo changing circumstances. The table below provides a summary of the status of Magenta Living s High and Medium strategic risks al 31 March 2024. Rlsk Area & Rallng Cybe￿￿Jr￿ty end IT R08111erLa Naturo of Rlsk. Key Conliols Failure 10 Implement ad6qual8 88¢urSty contro18 and reslllenl IT $yslem8 and Inlrn8lructuro Incre888'8 chance th818ny vuln8rablllU88 ￿￿11 b8 Oxplollgd. ré8ulllng In a 8VCC868ful yb8r8ecurfty 8ttack ContSnuous data loss pr&v6nllon lechn¢logy lo datecl and 810rt unusual levels of d810 oxtfacilon, encryplon or deletlon. Rolg based access p8ml8glon8 lo ensure accountsblllty for ch8nge8 mode lo core dats 86t8 or data slruciure {tran$8cllonal). Frèquent 8nap$hois. backup8 and test 8y818m repllcglons lo provlde rg8111oncg Bnd avallablllty In Iho OV8nl of slgnlflcanl10gs (IransA¢llonall. Four levels of backups for Server Infr8gtrudur8 bas￿ on oach 8eNtsrf8 Imporlance lo lh& buslngsg {Gold18very 6hl. Sllv8r {ev8ry 12h). Bronzé18very day). Tln levery weekll Cybèr 88curfty report lo ARC for ￿VIeW. rnonllorfng and ov8r81ght. AnU-vbru8 and Ihr•o1 monagomènl 80fthre Irb place wlth Id8nllfied thfeal8 rgvlewed by IT Op&rollons through to dosurg. Annu81 Mandatory Cyber SfrDJrlty Tfalnlng for 9118taff Info￿otIOn se￿j￿ty Manoggmgnl poll¢y 118$t rgvlewed Jan 20241 and $8oc181gd proc8durè81polldes In ploco {e.g. Aeceptable Use, Access Control and Pa88word pc41clefj elc.) Cyber Llablllty In$urancB In plac• IT Changé Advlsory Board (IT CABI In place to enburn all IT (Non-standard I Emorggncyl thange8 8re gpproved bofore Implemonlallon. Hlgh1201 Income InrL•mo negallvoly Impocted by re$lrlcllon8 on tho amount of rent we are able to oollecl, under.recovery of 8grvlGg charges and current macrogconornlc laclors negauvgly Impacllng cuglomgr affordabllity & rant collecuon ral6b. CustOrnel8 888a￿ad lor Bffordablllty al Slgn up ol tenancy. Sy818mlc pro8Ctlvè r8port IR8ntson881 producfrj we8kly to provldg prforltls81Son for 8rroor8 paym8nl8 Ilncludos a8818￿n9 tananls YAlh w8lfare bgn&flt advlc*l. Weekly monllorlng olkèy metrics IUndgroccup811on, Unlver801 Credlll to en8ure r9nl co118cllon wllhln busln855 plan lol¢rancg. Rggulallons. Deparlmgnl ofwork & Pen8lon8, Pro.Court #nd Noloo of Se8kSng Possesslons order8 are monSlored for chang88 and proc8sse8 upd81eil to rellecl Ihl8. Tlmgty and effeclve u89 ol the court proce88 through io evlcllon. AnnU8181￿$S testSng ol the slnglo and mulllple s¢en8rlos compl818d lrnlern8lly ond furlhèr r&vlew8d by 3¢d partle8. Th& report forrns part ol th& Bu51ness Plan report whlch 18 8pprovgd by ELT Board &nd Board annually Ilncludes Rent SoltSn9 offordabllltyl. 8usln&88 Plgn approvad annualty tho Board encompa8$lng key melrfc8 ond data. Forgeasllng monllored monthly olong wlth revlgw of a¢lual8 89glnsl budget 8nd any r0medlaUon acllvllles. Conllnuallon of Ihg Rent rellel fund lo Support CuBlornern In hgrdshlp. Internal proc88s Irnplernenled to B$sess ond approvo Indivldu81 r6qutss18. In-houso wellare benefit and flnanclal Inclu8lon te8m {servle• provlded lo 8UPP)rt Incomg and m8xlm18e bgn&fll Income). Medlum (121 Oevèlopmenl Pro9raninie Oevelopmenl and regeneralion ambilions are redLJced or stopped, negatively impacting our commilrnenl lo invest in current and D8vÈlopmenl assumptions rèviewed and agregd annually in conjunction w￿th Finance. Assiimplions and evidence validaled by 3rd parly prior lo approval al Asset and Development Commi118è IADCI and final approval by Board. ADC provided with Performance and Development upd31e repor15 every six to eight weeks. Board provided with 8 developmenl report lor oversight ol development programrn8 and schemes. Medium1151 Page | 17 Magenla Living Report and financial statements for the year ended 31 March 2024 Strategic Report fulur8 homes, the overall giowlh strategy and our reputalion in the community, Approved Climate Change Slralegio Plan outlining k8y issues, developmènt ol lulure build5 alld the use ol current siles (No gas in ngw homes 2025 1 n81 zero carbon homes by 20501. Contractor due diligencg in¢r8asèd with a ched(lisl including additional financial scrutiny completed. Contractor Monitoring & Support provided. Development Strategy approved In 2022 (due lor review 20261. Dala Governance and Integrity Lack of effective dala governance negalively irnpacls thè quality, confidonlialily. inlogrity and ava￿labIlitY ICIAI ol business-critical data, leading lo potsr decision Tnaking, non. compliance with regulaltsry 8nd legal requireintrnls and an incroased risk ol cybersecurily breaches. 2023 Dala Slralegy, oullines n)echanism5 to enhance data malurity. Dala Cenlr8 of Excèlloneè established with key stakeholders across lh8 business. Dala Governance Group provid85 oversighl ol Improvemenls to data govern8noe through ils Irarnework Validation ol Landlord Comp1ianc8 data is completed through monthly audits lo lesl dala accuracy Imonlhlyl. Landlord Conipliance Audit Results are provided lo Assets Director and He8ds ol Service rnonlhly, Business-wide Incident Managernenl process In place to report. assess and rem8diale any incideiils and nÈar misses identified. Assets & Liabilities Regisler IALRI refreshed and rgwn¢iled quarterly, providing a view ol finance system incon)ing & oulgoings and balance sheet ass81 data. Oala Proleclion officer IDPOI in place providing advice, support and oversight lo the busines5. Data Pfoleclion process•8 ar8 in plaee lo support tha business and work ol the DPO le.g. Subject Access Requests (SARS), Oala Proleclion Impact Assessm8nls IDPIA'S) elcl. Medium1121 High Rise Buildings Programine of works lo ren)ove non-complianl combuslible cladding identified on 3 HRBis not completed lo lime and budget, inipacling fire $#lely arrangenienls, lenanls, heallh and Safely, financial overheads and repulglional dainage lo Mag8nl8 Fire Risk Assessnienl ol Exl8rnal Walls IFRAEWI Assèssmenl cornplelad on all HRB'S, Oplion$ appraisal completed including impacl on thè 24125 Business plan. (Option lo reniovg eladding approved by 8oard with an inveslmenl ol c£2m in 241251 Customer Inipacl Ass8ssn)enl ¢ompleled which will inform Ihts ¢onlraclor selection lo minimise disruplion. Progr8iMnie ol works agreed, and Coi)Iiaclor appointed Iconlraclor duo diligence complgled as pail ol tendor process). Projecl Goverllaiicè arrangemenls are in place (High Rise Steèring Group, Monlhly working groupl. Action trackers m8inl8ined to ensure any concerns are escalated appropriately and any issues are n)cinag8d. Delivery plan in place and Inonilored wilh technical project supporl, comm5 and cuslorner support . Customer conirnunicalions plan lo ensure cuslomers ¥re kept lully informed (pre and post implemenlatlonl. IHR81 Medium1121 In addition to the high and medium risk noted in Ihe above table, the below risks have been managed lo a lowl very low rating through appropriate controls overseen by Ihe Audil and Risk Commillee.. Transformation Programme {Low191, People (low191', Property Compliance (low19); Treasury Management and Financial Capacity Ilow18)', Climate Change ILow161', Ctjslomer Excellence ILow16}'. Value for Money {Low16)', Ineflective Governance {Very Low13}. Page | 18 Magenla Living Report and financial statements for the year ended 31 March 2024 Strategic Report Streamlined Energy and Carbon Reporting Reasons for change in emisslons This is the fifth year of reporting under SECR. The current emissions compared lo the base year (April 2019- March 20201 have decreased by 350.4 lonnes of C02e, which accounts for a 150/0 decrease. The emissions haven't dropp8d as much as in previous years. as there has been an increase in company and private Ifansporl. The main factors causing this reduction are the significanl decreases in both the use of natural gas and electricity. where emissions have been reduced by 24Q/o ar)d 15 %, respectively. Business trav81 Activities relating lo travel are limited to company cars and employee-owned vehicles for business use. Increases in business travel is due to the recruitment of professionallskil18d employees and associated travel expenses if they live beyond a 20 mile radius. Quantlflcatlon and reportlng methodology HM Government Environmental Reporting Guidelin8s.' including streamlined energy and carbon reporting guidance {March 20191 has been used for Ihe collation of data sources and reporting of emissions. UK Goveinmenl GHG Conversion Factors for Company Reporting has been used for the reporting of emissions, using the 2023 version. OrganlsatSonal boundary The financial boundary of the business has been used to determine the reportin9 boundary. Opèratlonal scope Measurements include mandatory scope 1, 2, and 3 emissions, Eslirnates have been made with the Collation of data. Additionally, optional emissions from refrigeranls and electricity transmission and distribution losses have been included in lh8 report. Exclusions and Estimates There are no dala exclusioiis in this reporting period. 16 % of the electricity consumption has been eslimaled in this report due to a lack of invoices from the supplier. Base year The base year is April 2019 - MarGh 2020 and the gross feported emissions during thal period were 2,329 lonnes ol C02e. Target setting & responsibilities The largel is lo reduce gross scope 1, 2, and 3 emissions in lonnes of C02e per property by 2Q/o per year. The reduction of the performance of the curienl period against the target was 100/4. Intenslty measurement The metric chosen for reporting is gross global scope 1 and 2 emissions in lonnes of C02e per number of portfolio properties as this is a common business metric for a properly-based operation. An inlensily measurement will be reported each year with comparison made against previous year to highlight performance. Carbon offsettlng No Carbon Offselling is recorded in this reporting period. Pag8 | 19 Magenta Living Report and financial statemenls for Ihe year ended 31 March 2024 Strategic Report Specific April 21 axcluslons {O/.I March 22 April 22 - April 23 Mar¢h 23 March 24 SCOPE 1 C02e (tonnes Natural Gas None 1,030.7 894.7 978.0 Company owned transport Refrigerants None 272.4 192.7 401.7 None 11.3 11.3 12.7 Total Scope 1 None 1,314.4 1,098.7 1,392.4 April 21 March 22 April 22 - April 23 March 23 March 24 SCOPE 2 C02e Itonnesl Electricity None 469.3 373.0 479.6 Total Scope 2 None 469.3 373.0 479.6 Aprll 21 March 22 Apr5122 - Aprll 23 March 23 March 24 SCOPE 3 C020 (lonnes Ex¢lu81ons Electricity T & D Losses None 41.5 34.1 41.5 Private transport for businass purposes None 43.6 41.4 65.1 Total Scope 3 Nona 85.1 75.5 106.6 TOTAL C029 Scope 1, 2, 3 Gross emlsslons (tonnes) 1,868.8 1,547.2 1,978.6 Inlensily Metric Measure (properly) 329 329 313 Intensity Metric (Gross emlsslons) tC02elproperty 5.680 4.703 6.321 April 21 March 22 Apiil 22 March 23 April 23 March 24 Energy Consumptlon Excluslons 5,1 kwh 9,122,005 7,779,145 9,674,773 Carbon offsets TOTAL C02e Scope 1, 2, 3 Not emlsslons (tonnesl Intensity Metric (Net emlsslons) tC02elproperty 1,868.82 1,547.25 1,978.6 5.680 4.703 6.321 Page | 20 Magenta Living Report and financial statements for the year ended 31 March 2024 Strategic Report Energy efflclency actlons The 2023124 reporting year has seen further progress wilh our climale change strategy and our aim lo reduce carbon emissions. We brought forward a number of initiatives last year that we have implemented. During 2023 wè completed the inslallalion of External Wall Insulation to 99 homes as parl of Government's Wave 1 Social Housing Decarbonisalion Funding scheme, and a subsequent 40 homes as part of Wave 2.1. The 202412025 reporting year will see us complete the remainder of our £1.6m granl funded Wave 2.1 program inslallalions lo a furlher 121 homes, with mixed energy efficiency measures, in three of our 21 Wirral neighbourhoods, Birkenhead North. Bebinglon and Woodchurch. In 202412025 we will also be submilling a bid within the Liverpool City Region Wave 3 Social Housing Decarbonisalion Fund group fLinding bid, wilh ambitions to complete around 500 properties over the duralion of the funding window. Alongside this funding stream, we will be completing an EC04 pilot, with ambitions lo use this funding al scale in future years. As an organisalion, we are committed lo learning more and adapting lo new ways in which we can improve our suslainabilily and we hope lo be recognised as leading the way in the housing sector. As advised last year we are commilled lo a 30 year, 3-slage climate change strategic framework around our hovsing assets lo reduce carbon usage by 80 /0 by 2040 and lo achieve nèl zero by 2050. From an officesloperalions perspective we have taken aGlion in 3 key areas., Peoplé, Services and Standards. Inlernal Audlt {BDO) I nlernal Audit plays a crucial role in offering the Audit and Risk Commillee and the Board confidence regarding the adequacy and elfecliveness of risk management. control, and governance processes. Magenta collaborates wlth Its Internal audltors to develop an annual programme of Internal audll8, priorilised according lo strategic risks, emerging sector risks. and new aclivilies. The Audit and Risk Committee approves this annual risk-based programme and reviews all resulling reports, ensurin9 that any arising actions are completed. The Committee will inform the Board of any issues or trends of strategic importance. Presented below are the outcomes of the 2023124 audit programme and the internal opinion provided by BDO in their 2023124 annual report, Internal Audit outcomes oralo C¢fflffltyi51y Su￿)rI. Ase & Hate Crlme .￿￿Érate deiaie deTare Darr4) & lknuld . Adv15VI NIA Ntsvemb@r 1023 Dpvelaweni NDvembpT 2013 NIA Fch 1014 Iltherate JJffluary 1024 MaDJRQrnefii Accoiirtls KPIS & Performall(￿ RegDrihi i¢t 5eiilng & YAnagemenl iorte Wuikini AWprai¢ Moderate" . AWÈtyiÉ Follow Up 11 NIA NIA NIA Page | 21 Magenta Living Report and financial statements for the year ended 31 March 2024 Strategic Report BDO ANNUAL STATEMENT OF ASSURANCE PROVIDED WITHIN THE INTERNAL AUDIT ANNUAL REPORT 2023124 As th8 provider of internal audit sewices to Magenta Living, wo are required lo provide Ihe Group Audit & Risk Commillee and the Board with an opinion on the adequaGy and effectiveness of Ihe organisalion's risk managemenl, control and governance processes. In giving otir opinion, i( sho(Ild b8 noted Ihal tho assurance can n8ver be absolute. The most Èhal In16rnal Audil can provid6 to the Board is reasonable assiirance Ihat thère aro no major weaknasses in th8 organisation's risk managem8nl, control and governance processos. In assessing Ihe level of assiirance lo b8 given, we have taken into account.. All audits undertaken during the year reported upon,- Ai?y follow-up action taken in respect of audits from previous periods,. Manag8mgnt action in impl8m8nling recommendalions,. Any signifiGant recommendations not accepleo by management a17d tho consequent risks,. The 8ff8Cts of any significant changgs in the organlsalion's objectives or systems,. Tha proportion of the organisalion's audit need covered to dale. Concluslon In our opinion, based on tho reviews undert8ken, the follow up audils Gomplet8d during Ihe period, and in fhe Gonl8xI of materiality.. Tho risk managemenl aclivilies and conlmls in the areas which we examined wem foLind to be suitably designed to achieve the specific risk managemenl, control and governance 8rrangem8nts. Based on oiir sample lesling, risk managemonl, conlrol and governance arrangements were operalii?g with sufficient effectiveness lo providé reasonable assurai?Ge Ihal Ihe related risk managemenl, conlrol ai?d goverii8nce objectives were achieved IhroLighoiit the period linder review. This view is given with th6 &xceplion of.. Asset Man8geinenl & Invoslment Strategy, where the opinion was Limited for the design of Ihe conlrol envirof7ment revNewed,' where actions fo improve coi?Irol weaknesses remained ongoing 8t year end. and,. IT Control Environment. where the opinion was Limiled for the design and operational eff8cliveness of Ihe oonlrol environment reviewed,. wlpér6 actions lo improve control weaknessas ￿mained ongoi17g al year and, Statement of compliance The form and conlenl ol the strategic report review has been prepared in line with the Slalemenl of Recomniended Practice for registered Social Housing Providers 2018. The slalemenl has also been prepared in accordance with The Accounling Direction lor Private Registered Providers of Social Housin 2022. d Lucas hair Page | 22 Magenta Living Report and financial statements for the year ended 31 March 2024 Report of the Board of Directors Governance Governance Structure Magenta Living { Company") is Ihe parent entily, registered undef the Companies Act 2006 and with the Regulator of Social Housing as a social housin9 provider. It is responsible for the strategic planning and direction of Ihe Group. It owns or controls the entities below and includes them in the consolidaled financial slalemenls. Wirral Partnershlp Homes (Devèlopments) Llmlted undertakes the construction of domestic dwellings for the parent company. Hllbre Projects LLP undertook the developmenl of residential and commercial property, including social housing Iseclion 106 properties} and housing to be sold on the open market. It ceased trading on 31 March 2022. Wirral Partnership Homes {Bulldlng ServSces) Limlted provided responsive repairs. void repairs, adaplalions and improvement programme works lo Magenta Living until 1 April 2008 when these services wore transferred to Magenta Living. Since then, Wirral Partnership Homes (Building Servic6s} Limited has been dormant. Bamboo Estatas LLP whose principal activity is the lelling of housing properties at market rent in the northwesl of England. Previously Baniboo Eslales had been a joint venture with Torus62 Ltd bul on 31 March 2023 Torus62 exited the joint venture. Bamboo Estates remains an LLP. From 1 April 2023 Magenta Living and ils subsidiary Wirral Parln&rship Homes (Developmenlsl Limited are the joint venture partners. Magenta Living tjoard Magenia Llvlng MAfjENTA VIPH '.IOevelcprnen(sl Ll¢J Dèmboo Lciiirlgs ItKimbcx)11 Audit b Ris Commiiiee PlageDia People 6 (￿liU1e Comffliiiee Asse156 Uevelopnien( Commiiioe WPH IBuildin9 ServScesl Ltd IDDimènrl Hilbre Home5 IDotmanii Page | 23 Magenla Living Report and financial statements for the year ended 31 March 2024 Report of the Board of Directors Audlt & Risk Commlttee 'ARC' The ARC, composed of NED Members and a co-opte8, advises Ihe Magenta Living Board on th6 robustness of risk management, internal control, and assurance frameworks. 11 offers independent scrutiny and ensures transparent procedures for selecting, appointing, overseeing, and reviewing audilors, emphasizing value for money, performance measurement, process oplimizalion, and strategic review. People & Culture Commlttee 'PCC' The PCC, composed only of NED Members, ovèrsees and advises on governance effectiveness, NED succession planning, Board Directors, and Chief Executive appraisals, conlraclual mallers for the Chief Executive, and remuneration for NEDS, th6 Chief Executive, and staff.11 ensures Magenta Living allfacls and retains talent while fostering an organisatiorbal culture and practices which keep our colleagues and customers safe. Assets & Dèvolopment Commlttoe 'ADC' The ADC consists of NED members and an Executive Director. The ADC is responsible for agsisling the Magenta Livin9 Board in fulfilling ils strategic assets and development responsibilities and is tasked with exercising ils delegated authority in relation lo the consideration, approval and monitoring of development and commercial activities. Magenta Communltles Commlttee 'MCC' The Magenta Communilios Committee IMCCI was created lo maintain formal links between customers and the Board, giving cusloniers a say in the organisalion's decisions. 11 consisls of al leasl Iwo board members and nin6 community members, seven ol whom are tenants. MCC reviews strategies and policies affecting cusloniers and manages a Commijnily Fund for local inilialives. With customers in the majority, including a customer Chairperson, the Commille6 influences s&rvices, oversees social value aclivilies, and represents on NHF'S Tenant Panel and the Housing Ombudsman's Resident Panel. Magenta Llvlng Board The current Board members and Executive Directors, along wilh those who served up to the approval dale of these financial statements, are listed on page 1 . The Board comprises individuals with diverse experlise in professional, commercial, and local areas. Appoinlmenls are skills-based, regularly assessed via a board skills matrix, Typically, members serve two Ihree-year terms, with possible one- year exlensions up to a lolal of nine years. The Board can have up lo 12 Non-Execulive Directors, meets al least folir limes annLially, and is responsible for the Group's long-lerm strategy and policy implemenlalion while ensuring legal and regulalory compliance. The Group holds insurance policies that provide indemnity coverage for ils Board members and Executive Directors against liabilities that may arise while performing Iheir duties for Ihe Group. A summary ol the diversily of the Board during 2023124 is detailed below. AGE GENDER ETHNICITY 1<50 *5039 Page124 Magenta Living Reporl and financial statements for the year ended 31 March 2024 Report of the Board of Directors Board and Committee Membership 2023124 Magenta Living Board Ged Lucas (Chairl Myles Edwards ISID} Stephen Allcock Julie Booker Ann-Louise Gilmore Susan Goodman Liam Kelly Paul MGGrady Michael Riley Mike Turner Ann-marie Spencer {resign8d 7 November 20231 Audlt & Rlsk Susan Goodman (Chairl Stephen Allcock Julie Booker Andy McCu11agh {Co-Opleel Paul McGrady People & Culture Liam Kelly (Chair) Myles Edwards Ged Lucas Julie Booker Assots & Development Ann-Louise Gilmore {Chairl Ged Lucas Michael Riley lan Thomson {Co-opteel Mike Turner Paul McGrady Magenta CommunStles Wendy Gooley (Tenant Chair) Mylas Edwards Liam Kelly Board and Commlttee NED Attendance Board I Commlttee /ts Attendance Magenta Living Board 100 Audit & Risk Committee 87 People & Culture Committee 81 Assets & Development Committee 93 Magenta Communities Commillee 85 Page | 25 Magenta Living Report and financial statements for the year ended 31 March 2024 Report of the Board of Directors Our Executive The Executive Dir8Ctors include the Chief Executive and other members of the Group's Executiv& Leadership Team, all of whom are detailed on page 1. They operate within the authority delegated by the Board. The Chief Executive and other Executive Directors have permanent contracts wilh nolice periods up lo six months. After the Chief Executive left in December 2021, an interim filled the position until it was permanently filled in November 2022. The Executive Directors are parl of either the Social Housing Pension Scheme (defined contribulionl or the Mers8yside Pension Fund (defined benefit linal salary). They receive the same terms as other staff, with the Group contributing on their behalf. Execulivo Directors also gel a car allowance along with their basic salary. Remuneration details are in note 10 of the 8udi18d linancial stalemenls. Our Employees The strength of the Group lies in the calibre of ils employees. Achieving objectives and fulfilling commilnienls lo tenants elficienlly and effectively depends on th8 contribution of ils workforce. The Group communicales information regarding its goals, progress, and activities through regular office team brièfs, live events, internal social media platforms, and departmental meetings that involve Board members, the Executiv6 Leadership Team, and staff. Magenta is dedicated lo equal opporlunilies, supporting the employment of disabled individuals both in recruitment and in the relenlion of those who become disabled while working for Ihe Group. According lo the Equality Act 2010, all UK employers with 250 or more employèes musl publish information oli their gender pay gap (Gender Pay Gap Informalionl Regulalions 2017. The Board acknowledges its responsibilities concerning health and safely matters. Detailed health and safely policies have been 8slablished by the Group, alongside staff training and education on theso issues. 11 is the Group's policy lo uphold and, where leasibl&, surpass the health and safety slandards outlined by legislation. Internal controls assurance The Board acknowledges ils overall responsibilily for establishing and mainlaining the whole system of inlernal control and for reviewing ils effectiveness. The system of internal control is designed lo manage, rather than eliminale, the risk of failure lo achieve business objectives, and lo provide reasonable, and not absolute, assurance against material misstalemenl or loss. The process for identifying. evaluating and managing the significant risks laced by the Group is ongoing and has been in place Ihroughoul the poriod commencing1 April 2023 to the date of approval of the annual reporl and financial slalemenls. Page | 26 Magenta Living Report and financial statements for the year ended 31 March 2024 Report of the Board of Directors Key elements of the control framework include.. Board approved lerms of reference and delegated authorities for the Audit and Risk Commillee., Clearly defined management responsibilities for the idenlilicalion, evaluation and control of significant risks., Robust strategic and business planning processes, wilh delailed financial budgets and forecasts,. Formal recruilmenl, retention, Iraining and developm6nl policies for all staff., Established aulhorisation and appraisal procedures for significant new inilialives and commilm6nls' A conservative approach to treasury management which is subject lo external review on an annual basis., Regular reporting to the appropriate committee on key business objectives, largels and outcomes., Board approved whistle blowing and 8ntl-Ihell and corruption policies., Board approved fraud policies, covering prevention, detection and reporting, together wilh recoverability of assels. and Regular monitoring of loan covenants. The Board cannot delegate ulliniate responsibility for the system of internal control. but il can, and has, delegated authority lo the Audit and Risk Commillee lo regularly review the effectiveness of the system of internal control. The Board receives quarterly reports from the Audit and Risk Committée togelher with minutes of committee meetings. The Audit and Risk Comrnillee has received and approved the Chief Executive's annual review of the effectiveness of the system of internal control for the Group and the annual report of the internal auditor and has reported ils findings lo the Board. Going concern The GroLlP'S business operations, current financial standing, and laclors likely to influence its future progression are detailed in the Report of the Directors. The Group maintains long-lerm debt facili118S, including £46m of unused resources as of 31 March 2024 {2023.' £50ml, which secure sufficient funds for commilled reinvestment and development programmes alongside daily operations. While rental income has remained consistent, the Group has faced incr&ased short- and medium- term 8xpendilures due lo inflationary pressures and a ris6 in demand lor planned and rouline repairs. Ongoing challenges in the construction sector have further reduced planned spending during Ihe year. However. efforts are ongoing lo review and address these challenges, allowing the liming adjustments in investment for both existing housing assets and new developments lo elfeclively manage cashflow impacts. The long-lerm business plan accommodates the organisalion's developmental goals lo meet regional social housing deniand. Moreover, the plan demonslrale5 the Group's capability lo service ils debt facilities while adhering to lender covenants. As of 31 March 2024, the Group held £7.9m in available cash balances and an additional £46m in secured bul undrawn loan facilities accessible al short notice. The Consolidated Slalemenl of Comprehensive Income reveals a surplus of £2.5m for the year before accounting for actuarial gains pertaining to pension schemes. The underlying EBITDA (Earnings Before I nleresl, Tax, Depreciation, and Amortisalionl remains robust, wilh discretionary spending being closely managed. Pagg | 27 Magenta Living Reporl and financial statements for the year ended 31 March 2024 Report of the Board of Directors Consequently, the 8oard reasonably expects that the Group possesses adequate resources to maintain operational existence for the foreseeable future, defined as a period of twelve months following the signing dale of the report and financial slatemenls. Therefore, the goin9 concern basis continues to be applied in the financial slatements. Public Benefit As a public benefit enlily, Magenla Living has applied the public benefit entity 'PBE' prefixed paragraphs of FRS 102. Donations During the year ended 31 March 2024 the Group has madè no political contributions and any charitable donations were made during the course of ils ordinary activities (2023.. £nill. Post balance sheet events Magenta considers Ihal Ihere have been no events since Ihe year end that have had a significant effeGI on lh8 Group's financial position. Statement by the Directors in performanc8 of thelr statutory duties In accordanc8 wlth Section 172(11 of the Companies Act 2006 The Board promotes the success of the Group in the In18resls of ils slakeholders. Ils strategies and activities are aimed at ensuring the long-term success of the business. It bélieves this will be achieved by delivering Magenta's corporate plan and strategic objectives which requires il to engage with and deliver services lo ils stakeholders which include.. I ndividual cuslom6rs', Corporate or business cllenls and associates., Colleagues., Communities., JV partners., Lenders; The Regulator of Social Housing l Homes England. Government {nalional and Ioc811. By identifying, engaging with, and understanding Magenta's stakeholders, il can factor into boardroom discussions the potential impact of ils decisions on each stakeholder 9roup and consider their needs and concerns when selling the slralegy for the long-lerm success of Magenta. The Board continually reviews how il can meet ils obligalions under s.172 of the Companies Act 2006. Magenta has acled in accordance with Ihe Act in ils approach lo addressing key decisions, some of those decisions and the considerations of Magenta's stakeholders are further described be10w.' Pa9e | 28 Magenta Living Report and financial statements for the year ended 31 March 2024 Report of the Board of Directors he likely consequences of any ecision In the lon term he interests of the company's mploye8S Approved the 2024-2030 Corporate Plan Approved the Annual Pay award Reviewed Magenta's People Strategy Reviewed and approved Magenta's Modern Slavery Statement Reviewed and approved M8genla's Gender Gap Reviewed and scrulinised Magenta's organisalional change programm8 he need lo fosler the company's uslnèss relallonships wllh suppliers, uslomers and others Consideration of the impact of applying the rent increase and affordability for our customers alongside the cost ol living ¢risis and the need lo invest in our Gurrenl and future homes he Impact of Ihe company's poralions on tho community and Ihe nvironmenl New Customer Relalionshlp Management system procured Neighbourhood Plans developed Cost of Living Strategy implemented including community roadshows Progression of the Climate Change Strategic Fram8woik Climate strategy inilialives Including inslallalion of carbon. efficiency monitoring equipmènt, loft insulation and LED lighting in homes, electric vohiclo Charglng points Installed at Magenta offices and oloclric vehicle$ formlng a percentage of Magonla's fleet ¢onlra¢l h& desirability of the company maintaining a reputation for high landards of business conduct. See 'Conlinuous Improvement and Governance Customer salisfaclion survBy widoned lo in¢f8ase polenlial respondents Compblalion of Tenant Sallslacllon Measures Com lelion of an Asset Performance Evaluallon Reviewed the Group Co-operation Framework he need lo acl fairly as between members of the company. Compliance with the Natlonal Housing Federation Code of Governance Magenta Living has adopted the National Housing Federalion's 2020 Code of Governance Ilhe Code}. The Board considers compliance against each of the piovisions of the Code on an annLial basis. Following this review on 21 March the Board, through its delegation lo Magenta Living,'s People and Cullure Committee, was assured that Magenta Living is fully compliant with the Code. Continuous Improvement and Governance The Board conlinually enhances ils governance effectiveness. In 2023124.. Magenta Living fully complied with the NHF Code of Governance 2020. The Board and Conimillees assessed their effecliveness after every meetin9, and all NEDS completed the annual survey. The PCC approved an Associale Board Director Programme. The Board finished its action plan based on internal effectiveness surveys. Page | 29 Magenta Living Report and financial stalements for the year ended 31 March 2024 Report of the Board of Directors Compliance with the Governance and Financial Viability Standard issued by the Regulator of Social Housing The Board has confirmed that an assessment of the Group's compliance with the Governance and Financial Viability Standard has been completed and certifies that the Group is compliant with the Standard. Statement of Responslbllltles of the Board for the report and flnancial statements The Board is responsible for preparing the report and financial statements in accordance with applicable law and regulations. Company law requires the Board to prepare financial sl8lemenls lor each financial year. Under that law the Board has elected lo prepare the financial slalemenls in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable laws including FRS 102 "The Financial Reporting Standard applicable in th8 UK and Republic of Ireland"). Under company law the Board musl not approve th8 financial slalemenls unless Ihey are satisfied Ihal they give a true and fair view of the slate of affairs of th8 Group and Company and profil and loss of the Group and Company for that period. In preparing thèsè financial slalemenls, the Board is required to.. Select suitablè accounting policies and then apply them consislenlly, Make judgements and eslimales that are reasonable and prudent, Slate whether applicable accounting standards have been followed, subjèct to any material departures disclosed and explained in the financial slalemenls, and Prepare the financial slalemenls on the going concern basis unless il is inappropriate lo presume Ihal the Group and Association will continue in business. The Board is responsible for keeping proper accounting records which disclose with reasonable accuracy al any lime the financial posilion of the Group and Company and enable il lo ensure that the financial slalemenls comply with the Companies Act 2006, the Housing and Regeneralion Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2022. 11 has general responsibility for taking reasonable steps lo safeguard the assets of th8 Group and Company and lo prevenl and detect fraud and other irregularili&s. The Board is responsible for the maintenance and integrity of the Group websites. Legislation in the Uniled Kingdom governing Ihe preparation and disseminalion of financial slalemenls may differ from legislation in other jurisdictions. Disclosure of information to auditors So far as each of Ihe directors of the Company is aware, al the lime Ihis report is approved: There is no relevant audit information of which the Company's auditor is unaware., and The directors have taken all Ihe steps that they ought lo have taken as a director in order to make themselves aware of any relevant audit information and lo establish that the Company's auditor is aware of (hal information. External audltor A resolution to re-appoint Beever and Slrulhers as audilors in accordance with section 487{21 of the Companies Act 2006 was approved by the Audit and Risk Committee on 7 September 2023. Page | 30 Magenta Living Report and financial statemenls for the year ended 31 March 2024 Report of the Board of Directors Annual General Meetlng The annual general meeting was held on 25 September 2024. Approval The Report of the Board was approved by the Board on 25 September 2024 and signed on its behalf Ged Lucas Chair Pagel 31 Magenta Living Report and financial stalements for the year ended 31 March 2024 Independent Auditor's Report to the Members of Magenta Living Opinion We have audited the financial slalements of Magenta Living (the 'parent Company'l and its subsidiaries Ilhe 'Group') for the year ended 31 March 2024 which comprise Ihe Consolidated Statement of Comprehensive Income, the Company Slalemenl of Comprehensive Income, the Consolidated and Company Slalemenls of Changes in Reserves, the Consolidated and Company Slalements of Financial Position, the Consolidated Slalement of Cash Flows and Ihe notes lo the financial slalemenls, including a summary of significant accounting policies in note 2. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial stalements.. give a Irlie and fair view of the stale of the GrDUP'S and of the parent Company's affairs as al 31 March 2024 and of the Group's income and expenditure and th8 parent Company's income and expenditure for the year then endéd.. have been properly prepared in accordance with Uniled Kingdom Generally Accepted Accounting Practice. and have been prepared in accordance with the requirements of the Companies Act 2006, the Housing and Regeneration Acl 2008 and Ihe Accounting Dirèction for Private Registered Providers of Social Housin9 2022. Basis for opinion We conducted our audit in accordance wilh Inlernalion81 Standards on Auditing {UK} IISAS IUKII and applicable law. Our responsibilitiès under those standafds are furiher described in the Auditor's responsibilities for the audit ol Ihe finai)cial slatements section ol our report. We are independent of Ihe Group and parent Company in accordance with the elhical requiremenls that are rel6vanl lo our audit of the financial slateinenls in the UK, includiiig the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that Ihe audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion, Conclusions relating to going concern I n auditing the financial slalamenls, we have concluded that the Board's use of the going concern basis of accounting in tha preparalion of the financial slalemenls is appropriate. Based on th8 work we have performed, we have not identified any material uncertainties relating lo events or conditions that, individually or collectively, may cast significant doubl on the Group's or the parent Company's ability to continu8 as a goin9 concern for a period of al least twelve months from when the financial statements are aulhorised for issue. Our responsibililies and the responsibilities of the Board wilh respecl lo going concern are described in the relevant sections of this report. Other informalion The other information comprises the iiilormalion included in the annual report, other than the financial stalemenls and OLir auditor's report Ihereon. The Board is responsible for the other information contained within the annual report. Our opinion on the financial slalemenls does not cover Ihe other information and, except to the exlenl otherwise explicitly slated in our report, we do not express any form of assurance conclusion Ihereon. Page132 Magenta Living Report and financial statements for Ihe year ended 31 March 2024 Independent Auditor's Report to the Members of Magenta Living Our responsibility is lo read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial slalemenls or our knowledge obtained in the course of the audit, or olheNise appears lo be materially misslaled. If we identify such material inconsistencies or apparent material misslalements, we are required lo determine whether this gives rise to a material misslalemenl in the financial statements themselves. If, based on the work we have performed, we conclude Ihal Ihere is a material misslatemenl of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the informalion given in the strategic report and the Report of the Board of Directors for the financial year for which the financial statements are prepared is consistent with the financial slalemenls., and the strategic report and Ihe Report of the Board of Directors have been prepared in accordance with applicable legal requir6menls. Matters on whlch we are requlred to report by exception In Ihe lighl of the knowledge and understanding ol Ihe Group and the parent Company and ils environment obtained in the course of Ihe audit, we have not idenlifi8d material misstalemenls in the strategic reporl or the Report of the Board of Directors. We have nothing lo report in respect of the following mallers in relation to which the Companies Acl 2006 requires us to report lo you if, in our opinion.. adequate accounting records have not been kepl by the parent Company. or returns adequate for our audit have nol baen received from branches not visitèd by us. or the parent Company financial slalemenls are not in agreement with the accounting records and returns., or certain disclosures ol directors. remuneralion specified by law are not made., or we have not received all the inlormalion and explanations we require for our audit. In 8ddilion, we have nothing lo report in r6specl of Ihe following matter where the Housing and Regeneration Act 2008 requires us lo report lo you if, in our opinion.. a salislactory system of control over transactions has not been maintained. Responstbilities of diroctors As explained more lully in Ihe Slalemenl of Responsibililies of the Board lor th8 report and financial statenienls sel out on page 30. the Board is respoiisible for the preparation of the financial slalements and for being salisfied that they give a true and lair view. and for such inlernal control as the Board determine5 is necessary lo enable the preparalion of financial slalemenls thal are free froni nialerial misslalemenl, whether due to fraud or error. In preparing the financial slalements, the Board is responsible for assessing the Group s and the parent Company s ability to continue as a going concern, disclosing, as applicable, mallers related to going concern and using the going concern basis of accounting unless the Board either intends lo liquidate the Group or the parent Company or lo cease operations, or has no realistic allernalive but lo do so. Page | 33 Magenta Living Report and financial stalements for the year ended 31 March 2024 Independent Auditor's Report to the Members of Magenta Living Auditor's responsibilities for the audit of the flnancial statements Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misslalemenl, whether due lo fraud or error, and lo issue an auditor's report that includes our opinion. Reason8ble assurance is a high level of assLJrance, bul is not a guarantee that an audit conducted in accordance with ISAS IUK) will always delecl a ma18rial misslalement when it exists. Misstalemenls 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 slalemenls. A further description of our responsibilities for the 8udil of the financial stalemenls is located on the Financial Reporting Council's website al www.frc.org.uklaudilorsresponsibililies. This description forms part of our auditor's report. Extent to whSch the audit was considered capable of delecting irregularities, including fraud Irregulari118s, including fraud, are instances of non-compliance wilh18ws and regulations. We design procedures in line with our responsibilities, oullined above, to dolocl material misslalemenls in respect of irregularities, including fraud. The exlenl lo which our procedures are capable of detecting irregularities, includin9 fraud is detailèd below.. We obtained an understanding of laws, regulations and guidance that affect the Group and paronl Company, focusing on those that had a direct effect on the financial statements or that l)ad a fundamental effect on ils operations. Key laws, regulations and guidance that we identified included thé Companies Act 2006, the NHF Code of Governance 2020. the Regulatory Standards, Ihe Statement of Recommended Practice for registered housing providers.. Housing SORP 2018, the Housing and Regeneration Act 2008, the Accounting Direction for Private Registered Providers of Social Housing 2022, lax legislation, health and safely legi51alioii, and employment legislation. We enquired of the Board and reviewed correspondence and Board meeting minutes for evidence ol non-compliance with relevant laws and regulalions. We also reviewed the controls the Board have in place, where necessary, lo eiisure compliance. We gained an understanding of the conliols Ihal the Board have in place to prevent and delecl fraud. We enquired of the Board about any incidences of fraud that had taken place during the accounting period. The risk ol fraud and non-compliance with laws and regulations was discussed within the audit team and tests were planned and performed lo address these risks. We identified the polenlial for fraud iri the following areas,. laws related lo the construction ar)d provision of social housing recognising the regulated nature of the Group's aclivilies, We reviewed financial slalemenls disclosures and supporting documentation lo assess compliance with relevant laws and regulations discussed above. We enquired of the Board about aclual and potential liligalion and claims. We performed analytical procedures lo identify any unusual or unexpected relationships that might indicata risks of material misslalemenl due lo fraud. I n addressing the risk of fraud due lo management override ol internal controls we tesled the appropriateness of journal entries and assessed whether Ihe jLidgemenls made in making accounting eslim31es were indicalive of a potential bias. Page | 34 Magenla Living Report and financial statements for the year ended 31 March 2024 Independent Auditor's Report to the Members of Magenta Living Due lo the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audil in accordance with auditing standards. For example, as with any audil. there remained a higher risk of non-deleclion of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresenlalions, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to delecl all fraud and non-compliance with laws and regulations. Use of our report This report is made solely lo 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 thal we might slate lo Ihe Company s members those matters we are required to slate lo them in an auditor's report and for no other purpose. To the fullest exlenl permitted by law, we do nol accept Dr assume responsibility to anyone other than the Company and Ihe Company s members as a body, for our audit work, for this report, or for the opinions we have formed. Mark Bradley BA BFP FCA (Senior Statutory Auditor) For and on behalf of Beever and Strulhers Slatulory Auditor Suite 9b The Beehive Lions Drive Shadsworlh Business Park Blackburn BB12QS Date.. 30 September 2024 Page | 35 Magenta Living Report and financial stalements for the year ended 31 March 2024 Consolidated Statement of Comprehensive Income Note 2024 £'ooo 2023 £'ooo Turnover Cost of sales Operating expenditure Gain on disposal of housing properties 77,224 (2,204) {72,285) 1,558 69,604 11,5521 {70,5161 3,388 4,293 924 Gain on revaluation of investment propert16S 15 874 1,045 Operating surplus 5,167 1,969 Share of profil in joint venture Interest receivable and other finance income Interest payable and financing costs 17 458 38 (3,6041 455 13.102> Surplusl{doficit) on ordlnary actlvltles before taxatlon 2,520 {1.139) Tax on surplus on ordinary activities 1491 Surpluslldeflcltl for the year 11,140) Actuarial gain in respect of MPF pension scheme Actuarial {lossl in respect of SHPS pension scherne 27 27 188 {138) 34,388 (99) Total com rehenslvo Income for the ear 33,149 The consolidated results relate wholly to continuing aclivilies. The accompanying notes on pages 41 to 83 form parl of these financial statements. The financial slatemenls on pages 36 to 83 were approved by the Board and authorised for issue on 25 September 2024 and signed on ils behalf by.. Lucas air Susan G Chair of od ian il and Risk Page | 36 Magenta Living Report and financial stalemenls for the year ended 31 March 2024 Company Statement of Comprehensive Income Note 2024 £'ooo 2023 £'ooo Turnover Cost of sales Operating expenditure Gain on disposal of holising properties 76,661 {2,2041 (71,7951 1,558 69,604 {1,303} {70.446) 3.388 4,220 1,243 Gain on revaluation of investment propertiés 15 874 1,045 Operatlng surplus 5,094 2,288 Inleresl receivable and other finance income Interest payable and financing costs 873 {3,102} 456 (3,604) Surplusl{deficitl on ordlnary activities bèfore taxation (860} Tax on surplus on ordinary aclivilios 11 SurpluslldeflcSt) for the year 2,865 (860) Actuarial gain in respect of MPF pension scheme Actuarial (loss) in respecl of SHPS pension scheme 27 27 188 (138) 34,388 1991 Total com rehensive Income for the ear The company's resvlls relate wholly to ¢onlinuing activities. The accompanylng notes on pages 4110 83 form part of these financial slalemenls. The financial slalen)enls on pages 36 10 83 were approved by Ihe Board and aulhorised for issue on 25 Septembér 2024 and signèd on ils belialf by.. ed Lucas Chair Susan Goo Chairof Audit and Risk Page | 37 Magenta Living Report and financial stalemenls for the year ended 31 March 2024 Consolidated and Company Statements of Changes in Reserves Consolidated Income & Expenditure Reserve Company Income & Expenditure Reserve £'ooo £'ooo Balance as at 31 March 2022 115,903 118,341 Deficit for the year Actuarial gain in respect of MPF pension scheme Actuarial {loss) in respect of SHPS pension scheme 11,140) 34,388 (99) (860) 34,388 (99) Closing resérves as at 31 March 2023 149,052 151,770 Surplus for the year Actuarial gain in respect of MPF pension scheme Actuarial Ilossl in respect of SHPS pension scheme 2,471 188 1138) 2,865 188 11381 Closin reserves as at 31 March 2024 151,573 154,685 The accompanying notes on pages 41 to 83 form part of these financial statements. Page | 38 Magenta Living Report and financial statements for the year ended 31 March 2024 Consolidated and Company Statement of Financial Position Company Number.. 04912562 At 31 March Group 2024 £'ooo Company 2024 £'ooo 2023 £'ooo 2023 £'ooo Note Flxed assels Tangible fixed assets - housing properties Other tangible fixed 8ssels Intangible fixed assets Investment properties Investment - subsidiary Investment in joint venture 12 13 14 15 16 252,044 230,985 256,806 235,589 3,533 3,571 3,533 3,571 625 625 16,225 16,225 220 15,351 15,351 130 90 660 272,427 250,567 277,409 254,731 Current assets Properties held for sale Stock Debtors: amounts due within one year Debtors.. amounts due after more than one year 18 3,216 239 6,043 236 6,401 125 4.253 3,216 239 6.374 236 6,401 125 4,716 19 19 Cash and cash èquivalents 20 7,981 14,127 5,212 12,161 17,715 24,906 15,277 Crèdltors.. Amounts falling due within one year 21 116,9261 {14.7701 116.438} 114,793} Net current assetsl{liabilltles) 11,161) Total assets less currenl Ilabllltles 273,216 260,703 276,248 263,341 Credltors.. Amounts falling due after more than one year Provisions for Ilabilities Pension provision MPF Pension provision SHPS Total net assets 22 1128,2531 (118,5681 {128,1731 1118,4881 27 27 6,952 7,199 6,952 7,199 (3421 1282} 13421 12821 151,573 149,052 154,685 151,770 Reserves Income and expenditure reserve 151,573 149,052 154,685 151,770 151,573 149,052 154,685 151,770 The accompanying noles on pages 41 10 83 form part of these financi81 slalemenls. The financial slalemenls on pages 36 to 83 were approved by Ihe Board and aulhorised for issue on 25 Sept niber 2024 and signed on ils behalf by.. d Lucas hair Susa Chair Go man udil and Risk Page | 39 Magenta Living Report and financial statements for the year ended 31 March 2024 Consolidated Statement of Cash Flows Note 2024 £'ooo 2023 £'ooo Net Gash inflow from operating activities 31 14,409 9,342 Cash flow from Investing activitiOS Purchase and conslrLlCtion of housing properties Purchase of other tangible fixed assets Purchase of intangiblg fixed ass8ls Proceeds from sale of housing properties Social Housing Grant re￿iVed Interest received 128,600> (157) (706) 1,776 6,176 46 115,0001 4.108 1,990 456 121,465) 18,446) Cash flow from financing activities Loan draw-down of borrowing Interest paid 4,000 13.090) {2.960) 910 12,960) Net change In cash and cash equlvalents Cash and cash èquivalents al begir)ning of the year {6.1461 14,127 (2,0641 16,191 Cash and cash e ulvalents at end of the ear 20 The accompanying notes on pages 41 to 83 form part of these financial slalements. Page | 40 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements 1. Legal status The Company is a private company limited by guarantee with no share capital, registered under tha Companies Act 2006 and is a registered housing provider. The registered office is Partnership Building. Hamilton Street Birkenhead CH41 SAA, The Group comprises the following entities.. RegisteredlNon- re istered Registered Non-regislered Non-regislered Non-regislered Non-regislered Namo Incor oration Magenta Living Companies Act 2006 Wirral Partnership Homes (Developments) Limited Companies Act 2006 Bamboo Eslales LLP Companies Act 2006 Hilbre Projects LLP Companies Act 2006 Wirral Parlnership Homes (Building S8rvic8s} Compani6s Act 2006 Limited, dormant company 2. Accounting policies Basis of accounting The financial slalemenls are prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP} including Financial Reportin9 Standard 102 IFRS 1021 and Ihe Housing SORP 2018.. Slalemenl ol Recommended Praclice for Registered Social Housing Providers and comply with the Accounting Direction for Registered Providers of Social Housing 2022. Magenta Living is a public benefit entity in accordance with FRS102. The financial slalemenls are presented in sterling {£) and rounded lo the nearest £'OOO. Golng concern The Group's finaiicial slalenienls have been prepared on a going concern basis which assumes an ability lo continue operating lor the foreseeable future. No significant concerns have been noted in the business plan updated for fulure periods and, as al 31 March 2024 the group had available cash balances of £7.9m and a further £46m of secured but undrawn loan facililies that could be drawn al short notice, Iherefore the Group considers il appropriate to continue lo prepare the financial statements on a going concern basis. Significant judgements and estimates Preparation of the financial slalemenls requires management lo make signilicanl judgements and estimates. Significant management judgements The following are the significant management judgements made in applying Ihe accounting policies of the Group that have the most significanl effect on the financial statements.. Stock and Work in progress The Group carries stock and work in progress of properties Ihal il intends lo sell. The stock is held al cost and this is regularly compared lo the recoverable amount to ensure no impairment is required. The recoverable amounts are derived from local market data and sales experience. Page | 41 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements Impalrment of Group's tangible assets Management seek lo identify indicators of impairment by considèring the economic viabilily and expected fulure financial performance of the asset. Where il is a Gomponent of an asset, WIP or property, the viability of that unil, scheme or property is also considered. The basis for Ihe recoverable amounts of the assets has been considered based on EUV-SH or deprecialed replacemenl cost. The Group has to make an assessment as lo whether an indicator of impairment exists. In making the judgement, mana9emenl considered the detailed criloria sel out in the SORP. The Group carries out an impairment r8view, assessing the Useful Economic Lives of properties and their future value to the Group. taking into account the current level of demand for properties, the lev81 of void losses, projected discounted cash flows and the ongoing investment in property maintenance and improvement. Void levèls have remained consistent with historic levèls and are in-line with the business plan. During the year, an impairment loss of £22k12023'. £nil) was recorded in the Slalement of Comprehensive Income for properties with long-term voids. Defined benefit penslon obllgatlons Management's estimate of Ihe defined benefit obligations is based on a number of critical underlying assumptions such as the standard rales of inflation, mortality, discount rate and anlicipalion of future salary increase. Variation in Ihese assumplions may sigriilicanlly impact the obligation amount and the annual defined benefit expenses las analysed in note 271. There is a nel asset al 31 March 2024 of £6.6m. The valuation of the pension fund assèts is based on actual MaTch 2024 data. Capitallsatlon of property development costs Distinguishing Ihe point al which a project is more likely than not lo continue, allowing capllalisalion of the associated development costs requires judgement. After capilalisalion management monitors the asset and considers whether chan9es indicate that impairment is required. The total amount capilalised in the year was £10.5 million. Signiflcant Estimates Inforniation about eslirmales and assumptions Ihal have the niosl significant effect on recognition and measurement of assets, liabilities, inoomè and expensas is provided below. Actual results may be significanlly differenl. Useful lives of depreclable assets.. Managemenl reviews ils estimate of the useful lives of depreciable assets al each reporting dale based on the expected ulilily of Ihe assets. Uncertainties in these estimates relale to technological obsolescence Ihat may change the ulilily of certain softwarè and IT equipment and changes lo decent homes standards which may require more Irequant replacement of key components. Accumulated depreciation al 31 March 2024 for tangible and intangible fixed assets was £114.5m12023,' £105.6m}. Revaluation of investment properties: The Group carries its investnienl property al fair value, with changes in fair value being recognised in The Statement of Comprehensive Income. The Group engaged independent valuation specialists lo determine fair value al the reporting period dale. The valuer used a valuation technique based on a discounled cash flow model. The determined lair va5ue of the investment property is mosl sensitive lo the eslimaled yield as well as the long-lerm vacancy rate. The key assumptions used lo determine the fair value ol investment properly are further explained in note 15. The carrying value of inveslmenl properiies al 31 March 2024 was £16.2m {2023.. £15.4ml. Page | 42 Magenta Living Report and financial stalemenls for the year ended 31 March 2024 Notes to the Financial Statements Basis of consolidation The consolidated financial slalements include the parent, Magenta Living and ils subsidiaries, Wirral Partnership Homes (Building SeNicesl Limited. Wirral Partnership Homes Ioevelopmenlsl Limited IWPH Developments), Hilbre Projects LLP and Bamboo Estates LLP and are prepared using the purchase method of accounting. Turnover and revenue recognltlon Turnover represents rental income receivable in the year, service charges, fees, income from property sales and other income receivable in the year (excluding VAT} for goods and services supplied in the year and revenue grants (including those from the Community Fund) receivable in the year. Rental income is recognised from the point when properties undèr development reach a practical point of completion or olheNise become available for lelling, nel of any voids Charges for support services funded under Supporting People are recognised as they fall due under the contractual arrangements with Administering Aulhorilies. Incom8 from property sales is recognised on legal completion. Taxation The Company is a registered charity and as such is potentially exempl lo corporation or capital gains lax on ils chaiilable activities. Any taxable profits generated by Ihe subsidiaries will be subjeGI to corporation lax. Deferred taxation Deferred lax is recognised in respect of all timing differences al the feporting dale, except as otherwise indicated. Deferred tax assets are only recognised lo the extent Ihal il is probable Ihal th8y will be recovered against the reversal of deferred tax liabilities or other future taxable profits, If and when all conditions for retaining lax allowances for the cost ol a fixed assèt have been mel. the deferred lax is reversed. Deferred lax is calculated using the tax rates and laws that have been enacted or subslanlively enacled by the r8porling dale that are expected lo apply to the reversal of the liming difference. Amounts recognised in respect of deferred lax are not discounted in accordance with FRS 102. Value Added Tax The Group is registered for VAT and charges value added tax IVATI on some ol ils income and is able lo recover only part of the VAT il incurs on expenditure. The financial slalements include VAT lo the extent that il is suffered by the Group and is not recoverable from H.M. Revenue and Customs or is subject to the VAT sharing agreement. The balance of VAT payable or recoverable al the year-end is included as a CL¢rrenl liability or asset. Community Fund As part of the stock Iransfer arrangement with Wirral Melropolilan Borough Council I'lhe Council l. the Community Fund {"Ihe Fund"} was established. The purpose of the Fund is lo provide the Company with funds lo underlake projects Ihal are mutually beneficial lo the Company and the Council while furthering Ihe Company's principal business. A Working Group, made up of an equal number of represenlalives from Ihe Company and Ihe Council, exisls to determine the use of the funds. Page | 43 Magenta Living Report and financial statements for Ihe year ended 31 March 2024 Notes to the Financial Statements The Fund coniprises of money from three principal sources.. 1. Balance of the Council's Housing Revenue Accounl on ils closure. 2. VAT savings from arrangenienls put in place at transfer. 3. Council and Company disposal claw back share on Ihe sale of land not to bè used for the purpose of social housin9. The monies received by the Fund shall be used for purposes that include several specifically referr8d lo in an agreement between the Council and the Company. The remainder is lo be ulilised by joint agreement of the Working Group sel belween the Council and the Company. Allhou9h access lo such funds is subject to the agreement of the Working Group (and are therefore not treated as income until agreement has been reached by the Working Group), Ihe Fund's monies arè beneficially and legally those of the Company and are therefore included in the Company s reported cash balance. Prior lo application of the Fund's monies a deferred income creditor is recognised Ihal is released on ulilisalion of the relaled cash balance. 11 is envisaged that the fund will be ulilised in the coming year and so is shown as due within one year and linked by disclosLJre to the cash balance. Where il is intended Ihal funds will be allocated in the next 12 months, these are classified as due within onè year. Government Grants Governnient grants include grants receivable from Homes England, local aulhorilies and other government organisalions. Government grants received for housing properties are recognlsed in income over Ihe useful life of the housing properly structure and, where applicable. ils individual components {8xcluding landl under Ihe accruals mod81. Grants relaling to revenue are recognised in inconie and expenditure over the sanie period as the expenditure lo which they relale once reasonable assurance has been gained that the enlily will comply with the conditions and that the funds will be received. Grants du8 from government organisalions or received in advance are included as current assets or liabilities. Governmenl grants received for housing properties are subordinated lo the repayment of loans by agreement with Homes England. Government grants released on sale of property may be repayable bul are normally available lo be rocycled and are crodiled lo a Recycled Capital Grant Fund and included in the slalenienl of financial position in creditors. If there is no requirement to recycle or repay the grant on disposal of the asset, any unamortised grant remaining within cradilors is released and recognised in Income and expenditure. other grants Grants received from non-governmenl sources are recognised using the performance model. A grant which does not impose specified future performance conditions is recognised as revenue when the granl proceeds are received or receivable. A grant that imposes specified lulure performance-relaled conditions on the company is recognised only when these conditions ar6 mel. A granl received before the revenue recognition criteria are satisfied is recognised as a liability. Interest payable Inleresl payable is charged lo the slalemenl of comprehensive income in Ihe year. Page | 44 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements Flnancial instruments Financial instruments which meel the criteria of a basic financial instrument as defined in Section 11 of FRS 102 are accounted for under an amortised historic cost model. The Group has applied the provisions of bolh Section 11 and Section 12 of FRS 102 in full and as such has classified all financial instruments as basic. Penslons The Group participates in two funded multi-employer defined benefit schemes, the Social Housing Pension Scheme I'SHPS'I and Ihe Merseyside Pènsion Fund I'MPF,). Scheme assets are measured al fair values. Scheme liabilities are measured on an actuarial basis using the projected unil credit method and are discounted al appropriate high quality corporate bond rates. The net surplus or deficit, adjusted for deferred tax, is presented separately from other nel assets on tha statement of financial position. A net surplus is recognised only to the 6xlenl that il is recoverable by the Group. The current service cost and costs from seltl8m6nls and curtailments are charged against oper81ing surplus. Past service costs are spread over the period until the benefit increasas vest. Interest on the scheme liabilities and Ihe expected return on scheme assets are included nel in other financé costs. Re-measuremenls are reported in other comprehensive income. Supportlng people Charges for support services funded under Supporting People are recognised as they fall due under the contractual arrangements with Adminislering Authorities. Housing properties Housing Properties are principally properlies available for renl and are slated al cost less accumulated depreciation and impairment losses. Costs include the cost of acquiring land and buildings, development costs and expenditure incurred in respect of improvements. Works to 8xisling properties which replace a component that has been treated separately for depreciation purposes, along wilh those works that result in an incrèase in nel rental income over the lives of the properties, thereby enhancing the econoniic benefits of the assets, are capilalised. Shared ownership properties are splil proporlionally between current and fixed assels based on the element relating lo expected first tranche sales. The first tranche proportion is classed as a current asset and related sales proceeds included in turnover. The remaining element is classed as a fixed asset and included in housing properties al cost, less any provision5 needed for depreciation or impairment. Freehold land is not depreciated. Page | 45 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements Depreciatlon of houslng properties The Group separately identifies the major components which comprise its housing properties. and depreciates each component on a straight line basis over the following useful economic lives,. Structure 60 years Windows and doors 30 years Kitchens 20 years Bathrooms 30 years Boilers 15 years Roofs 40 years External wall insulalion 20 years CCTV systems 10 years Car Park 30 years For High Rlse and Sheltered Blocks: Healing Systems Door Entry, Lift, Fire Alarm and Water Systems Electrical syslems 25 yèars 20 years 15 years Assets are not depreciated while under construction or until they are brought into use. Sale of houslng propertles Under the terms of the Iransfer agreement a proportion of the proceeds from the right lo blly sales are shared with the Council. The balance ol any funds due lo the Council will be included as a current Impairment Housing properties are assessed annually for impairment indicators. Where indicators are identified an assessment for impairmenl is undertaken comparing Ilie scheme's carrying amount lo its recoverable amount. Wliere the carrying amount of a scheme is deemed to exceed ils recoverable amount, the scheme is wri118n down lo ils recoverable amount. The resulting iinpairmenl is fecognised as operating expendilure. The Group carries out an inipairment review, assessing the Useful Economic Lives of properties and their future value lo Ihe Group, taking into account the currenl level of demand for properties, the level ol void losses, projected discounted cash flows and the ongoing inveslmenl in property maintenance and improvement. Void levels have remained coiisislenl with historic levels and are in-line with the business plan Investment properties Investment properties consist of commercial properties and other properties not held for the social benefit or for use in the business. Investment properties are measured al cost on initial recognition and subsequently al fair value as al the year end, with changes in fair value recognised in the slalemenl of Gomprehensive income. Inveslmenl properlies were valued as at 31 March 2024 by Smith & Sons professional qualified external valuers. The valuation of properties was undertaken in accordance wilh the Royal Inslilule of Chartered Surveyors Valuation Slandards. The comparable technique was used lo assess the value of the scheme. The valuation broadly corresporids with broader market trends.. the ONS house price index showed thal properly valualions in the Norlhwesl of England had increased by 3.8 /0 over the 12 months lo the end of March 2024. Page | 46 Magenta Living Report and financial stalements for the year ended 31 March 2024 Notes to the Financial Statements Olher tangible fixed assets Olher tangible fixed assets are measured at cost less accumulated depreciation and any impairment losses. Depreciation is charged on other tangib16 fixed assets on a straighl-line basis over their expected useful lives. Freehold olfices Car Parking CCTV systems Furniture, fixtures and fittings Computers and office equipment Olher equipment 20-40 years 30 years 10 yèars 4 years 4 years 4 years Assets are not depreciated while under construction or until they are brought into use. Intangible fixed assets Computer software is carried at cost less accumulated amortisalion and impairment losses. Costs associated with maintaining computer software are recognised as an expense as incurred. Amortisalion is chargèd on intangible assets on a straighl-line basis over their expected useful lives. Software 3 years Leased assels Leases are classified as finance leases whenever the terms of Ihe lease transfèr substanli8lly all the risks and rewards of ownership of the leased asset to the group, All other leases are classifièd as operating leases. Rentals payable under operating leases are charged to slalement of comprehensive incom8 on a slraight-line basis over the lease term, unless Ihe rental payments are slruclured lo increase in line with axpecled general inflation, in which case the group recognises annual rent expense equal lo amounts owed lo the lessor. Properties leased to Group Company Housing properties are leased to Bamboo Eslales based on a 5-year lease. The lease commences from Ihe lime Ihe tenancy in Bamboo Eslales begins and is recognised on a slraight-liné basis over the lease term. Investment in subsidiaries and joint venlures The consolidated financial slalemenls incorporate Ihe financial sl818menls of the Company and enlilies controlled by the Group. Control is achieved where the group has Ihe power lo govern the financial and operaling policies of an enlily so as to obtain benefits from ils aclivilies. Investments in subsidiaries and joint ventures are accounted for al cost less impairment in the individual Gompany financial slalemenls. An enlily is Irealed as a joint venture where the Group is party lo a conlraclual agreomenl wilh one or more parties from outside of the Group lo undertake an economic activity that is subject lo joint control. The Consolidated Slalemenl of Comprehensive Income includes the Group s share of the operating results applying accounting polices consistent lo the Group. In the Consolidated Slalemenl of Financial Posilion the interest in associated undertakings are shown as Ihe Group's share of Ihe identifiable net asselslliabilities. Page | 47 Magenta Living Report and financial statemenls for the year ended 31 March 2024 Notes to the Financial Statements Debtors Short term debtors are maasured at transaction price, less any impairment. Loans receivable are measured initially al fair value, net of transactions costs, and are measured subsequently at amortised cost using the effective interest rate method, less any impairment. Where deferral of paymenl terms have been agreed al below market rale, and wher6 material, the balance is shown at the present value, discounted al a market rate. Creditors Short term trade creditors are measured al Ihe transaction price. Other financial liabilities. including bank loans, are nieasured iiiilially al fair value. nel of transaction costs, and are nieasured subsequently al amorlised cost using th& effective interest rale method. Properties for sale Properties for oulrighl sale (including those under conslruclion) are valued 81 tho lower of cost and nel realisable value. Cost comprises materials, direct labour and direct development overheads. Nel realisable value is based on estimated sales price after allowing for all further costs of completion and disposal. Stock Stocks are slated al the lower of cost or net realisable value. Where n8cessary, provision is made for obsolete and defective stock. Current asset investments Investments are slated al cost. Glft Ald Income Gift aid income is recognised in the year of receipt. Page | 48 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements 3. Particulars of turnover, cost of sales, operating expenditure and operating surplus Group- continuing activities 2024 2024 2024 2024 Gain on disposal of Operating Operatlng housing surplusl expenditure properties (deficit) £'ooo £'ooo £'ooo 2024 Cost of sales £'ooo Turnovèr £'ooo Soclal hous1n￿1&ttIn.gS 71,379 70,860 519 Other social housing actlvlties Disposal of housing properties Current asset properly sales Development expenditure Other- social 1.558 1,558 446 {4441 301 2,454 (2,008} 1444) 301 2,755 12,0081 1,558 1,861 Activitiès other than social houslng Corporate repairs Lellings Olher 230 1,939 921 (1961 34 1,153 726 1786} 1195) 77.224 2.204 1,558 4,293 Page | 49 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements 2023 2023 2023 2023 Gain on dlsposal of Operatlng Operating housing surplusl expenditure properties (deficit) £'ooo £'ooo £'ooo 2023 Cost of sales £'ooo Turnover £'ooo Soclal housln lettin 66,015 69,940 3.925 other social housing actlvlties Disposal of housing properties Current assel property sales Development expenditure Other 3,388 3,388 816 (815) {268) {681 {336) 296 296 1,112 (1,083) (68) 3,388 3,349 A¢tivitles other than soclal housing Corporate repairs Lellings Olh8r 570 1,021 886 {469) 126) 1315) 11671 75 706 719 69,604 70,516 3,388 924 Page | 50 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements Company- continuing activities 2024 2024 2024 2024 Gain on dlsposal of Operatlng Cost of Operatlng housing surplusl sal8s expendSlure properties (def iclt) £'ooo £'ooo £'ooo £'ooo 2024 Turnover £'ooo Soclal housln lettln 71,379 70,842 537 Other social houslng actlvltles Disposal of housing properties Cufrenl assel property sales Development expenditure Other - social 1,558 1,558 446 14291 301 2,454 {2,008) 14291 301 2,755 (2,008> 1429) 1,558 1,876 Actlvltle$ other than soclal houslng Corporate repairs Lellings Other- non-social 230 1,075 1,222 {196) 34 696 1,077 {379} {145) 76,661 71,795 1,558 4,220 Page | 51 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements 2023 2023 2023 2023 Gain on disposal of Operating Cost of Operatlng housing surplusl sales èxpenditure properties (def icit) £'ooo £'ooo £'ooo £'ooo 2023 Turnover £'ooo Soclal housin lettln 66,015 69,733 3,718 Other social housing activities Disposal of housing properties Current asset property sales Development expenditure Other 3,388 3,388 816 {815) {291} 12911 296 296 1,112 1815> 1291> 3,388 3,394 Actlvltles other than soclal housing Corporate repairs Lellings Other 570 1,021 886 {469) (26) {315) {811 75 706 786 {191 69,604 3,388 1,243 Page | 52 Magenta Living Report and financial slalements for the year ended 31 March 2024 Notes to the Financial Statements Turnover, operatlng expenditure, and operatlng surplusl{deficit) from social housing letti ngs Group 2024 2024 2024 Low cost home ownership £'ooo 2024 2023 General Supported housing housing £'ooo £'ooo Total £'ooo Total £'ooo Turnover from soclal houslng lettlngs Rent receivable net of identifiablé sefvice charges and nel of voids Service charge income Charges for support services Amortisation of governnienl grants Other revenue grants 180 66,943 2,744 926 387 379 62,172 57,076 2,346 792 331 324 9,687 398 134 56 55 2,094 1,032 346 371 Total turnover on social housing lettlngs 180 71,379 66,015 60,869 10,330 Operatlng expendlturo on so¢lal housing18ttings Managemonl Service charge costs Routine maintenance Planned maintenan¢& Major repairs 8xpendilure Bad debts Depreciation of housing properties Impairménl of housing properties Reslrucluring and other costs Lease costs {22,2271 (2.616) 112,875) 19,027) 14,487) 1173) 18,520) {191 (3,772) 1444) (2,158) (1,5321 {762} 129) 11,448) (3) 125,9991 {25,224) (3,0601 {3,762) 115.060) 110.9841 (10,559) 17,959> 15,249) (11.678) {2021 1165) 19.9681 (9,555) {221 1741 15391 16371 11041 1741) Total expenditure on social housing lettings 160,581} 110,279} {70,860) {69,9401 Operating siirpluslldeficitl on social hoiisln lettin 288 51 180 519 {3,9251 Void losses (730) (1241 (854) (8301 Management costs include £1,750k12023.' £3,789kl of current and pasl pension service eosls for both the Merseyside Pension Fund IMPFI and the Social Housing Pension Scheme ISHPSI. Page153 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements Company 2024 2024 2024 Low cost General Supported homè housing housing ownèrship £'ooo £'ooo £'ooo 2024 2023 Total £'ooo Total £'ooo Turnover from soclal houslng lettings Rent receivable net of identifiable service charges and net of voids Service charge income Charges for support services Amortisation of government grants Other revenue grants 57,076 2,346 792 331 324 9,687 398 134 56 55 180 66,943 62,172 2,094 1,032 346 371 2.744 926 387 379 Total turnover on soclal houslng lettings 180 71.379 66,015 60,869 10,330 Operatlng expendlture on soclal houslng lettings Management Service charge costs Routine maintenance Planned maintenance Major repairs expenditure Bad debts D6precialion of housing properties Impairment of housing properties Restructuring and olher costs Lease costs (22.197) (2,616) (12,875) (9,0271 14,4871 {173) (8,533) (19) {3,7711 (4441 12,185) (1,532) 1762) {29) (1,4481 13) (25,968) 124,954) 13,060) 13,7621 {15,0601 (10,982} 110,5591 17,959) 15,2491 111,678) 1202) 11651 19.981 } 19,6201 (22) (74) 1539) 16371 1104) 1741} Total èxpenditurè on social housing lettlngs 110,2781 170,842} 169.7331 160,5641 Operating surpluslldeficltl on social housin 305 52 180 537 (3,7181 Void losses 1730} {1241 1854) (8301 Page | 54 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements 4. Accommodatlon in management and development At 1 April 2023 Addltlons Disposals No. Reclassific At31 ation March 2024 No. Units owned: Soclal housing General needs Social rent Affordable rent Supported housing Intermediate Rent Low Cost home ownership 9,347 1,455 1,776 (28) 137) (8) 45 {1) 9,282 1,526 1,853 19 91 80 53 13 41 (21) 49 Total soclal houslng homes owned 12,634 187 {50) 12,771 Non-soclal housing Market rented Total homes owned 12,638 187 {50) 12,775 Other homes managed.. Homes nianaged for Wirral Borough Council 30 30 Total homes Units in development at 31 March 2024 were 236 {2023', 3941. Leasehold unils al 31 March 2024 were 53512023.. 495). Pag& | 55 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements 5. Operating surplus The operating surplus is arrived al after chargingl(crediting)'. Group 2024 2023 £'ooo £'ooo Company 2024 2023 £'ooo £'ooo Impairmenl losses of housing properties (note 12) Depreciation of housing properties (note 12) Depreciation of other tangible fixed assets {note 13) Amortisalion of intangible fixed assets (note 14) Amortisation of government grants (note 24) Operating lease rentals - vehicles 22 9,969 9,555 195 180 81 (388) {346} 714 451 22 9,981 9,620 195 180 81 (388} (346) 714 451 AiidiÈors' remuneration (excluding VA T).. Audit of the financial slalements of the Company Audit of the financial statements of the subsidiaries Audit of the financial slalements of joint ventures Other seNices 34 14 34 34 34 6. Gain on disposal of housing properties Group and Company 2024 2023 £'ooo £'ooo Disposal proceeds Amount due to council for RTB sales Carrying value of fixed assels Administration and legal expenditure 2,212 1411) (229) (14) 4,968 (847} (720} (13) 1,558 3,388 There were 20 (2023.. 541 Right to Buy properties sold during the year and 6 {2023: 211 Right lo Acquire sales. Page | 56 Magenta Living Report and financial statemenls for the year ended 31 March 2024 Notes to the Financial Statements 7. Interest recelvable and other finance income Group 2024 2023 £'ooo £'ooo Company 2024 2023 £'ooo £'ooo I nlerest receivable and similar income Distribution of profit from joint venture Defined benefit pension charge - MPF (note 27) 46 39 370 38 46 457 370 38 418 455 38 873 456 8. Interest payable and flnanclng costs Group and Company 2024 2023 £'ooo £'ooo Loans and bank overdrafts Defined benefit pension charge- MPF (note 27} Defined benefit pension charge- SHPS (note 27) 3,091 2,960 638 3,102 9. Employee information Average monthly number of employees expressed in full time equivalenls {calculated based on a standard working week of 37 hours}- Group and Company 2024 2023 Adminislralion Property services Housing, supporl and care Building operatives 214 66 166 141 202 59 161 138 587 560 Page | 57 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements Group and Company 2024 2023 £'ooo £'ooo lo Lee costs Wages and salaries Social security costs Pension costs Reslructuring 22,027 2,244 4,454 333 19,757 2.073 4.288 511 26,629 The majority of the Group's employees are members of the Merseyside Pension Fund or of the Social Housing Pension Scheme (SHPS). Further information on each scheme is given in note 27. The aggregate number of full-lime equivalent staff including key management personnel (based on an average of 37 hours) whose remuneration {including salaries, benefits in kind, pension contributions paid by the employer and any lerminalion paymenls) exceeded £60,000 was as follows.. 2024 2024 Incllides terminatton Total payments No. 2023 2023 Includes termination Total payments No. No. £60,001 - £70,000 £70,001 - £80,000 £80,001 - £90,000 £90,001 - £100,000 £100,001 £110,000 £110,001 £120,000 £120,001- £130,000 £130,001- £140,000 £140,001- £150,000 £150,001- £160,000 £160,001- £170,000 £170,001 £180,000 £180,001- £190,000 £190,001 - £200,000 £200,001- £210,000 £210,001- £220,000 £220,001- £230,000 £230,001- £240,000 £240,001- £250,000 £250,001- £260,000 £260,001- £270,000 39 19 27 Page | 58 Magenta Living Report and financial slatements for the year ended 31 March 2024 Notes to the Financial Statements 10.Key management personnel remuneratlon Key management personnel comprise the executive directors and non-executive Board Members. Total remuneration {excluding employers NIC} arnounled to £1,079k, 12023= £717k). Remuneration for executive directors for the year ended 31 March.. 2024 £'ooo 2023 £'ooo Wages and salaries Expense allowances Pension contributions Termination benefits 680 60 154 92 441 38 63 76 986 618 Employers NIC 110 74 692 Remuneration payable lo the highest paid director in relation to the period of account amounted to £176.2k12023'. £187k that included termination benefits of £76k} bul excludes pension contributions. They are a member of the Social Housing Pension Scheme and is an ordinary member of the pension scheme with no enhanced 01 special terms. The employer's pension conlribution paid on behalf of the highest paid director amounted lo £39.5k12023.. £15k). An amounl of £57k {2023'. £nil) has paid to a third parly for Directors services relating to Marketing. Pago | 59 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements Non-executive Board Member remuneration for the year ended 31 March.. 2024 2023 Magenta Livlng Board.. Matthew Brown - resigned 3110812022 Gordon Ronald resigned 3010912022 Sharon Grover- resigned 1311212022 Sue Goodman Mike Turner Andrew Mccullagh Ann-Louise Gilmore Myles Edwards Liam Kelly Ged Lucas Wendy Gooley Julie Booker PaLII McGrady- resigned 2910412024 Michael Riley stephen Allcock Ann-marie Spencer- resigned 0711112023 2,188 2,625 5,426 7,875 7,875 3,500 6,296 8,508 7,875 15,250 3,250 5,625 5,625 2,283 2,283 2,283 8,250 8,250 3,500 8,250 10,000 8,250 15,500 3,875 6,250 6,250 6,250 6,250 4,083 94,958 88,767 Ken Russell - resigned 3010912022 Martyn Green 2,625 7,875 8,250 Total Board remuneration 103,208 99,267 Martyn Green is a Board Director of Bamboo Eslales LLP. Page | 60 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements 11.Tax on surplus on ordinary activities Analysis of Ihe charge in the year.. Group 2024 £'ooo Company 2024 2023 £'ooo £'ooo 2023 £'ooo Current tax UK corporation tax on surplus for the period Adjustmenls in respect of prior years 49 49 Deferred tax Nel origination and reversal of timing differences Total tax 49 Total lax reconciliation: Group 2024 2023 £'ooo £'ooo Company 2024 2023 £'ooo £'ooo Surplusl(Deficlt) on ordinary activitles before tax 2,520 (1,139) 2,868 (860) Theoretical lax at UK corporation tax rale 250/0 (2023.. 190/0) Effects of. Income not taxable for tax purposes Adjustments in respect of prior years 630 {216) 717 {163) (630) 49 216 (717} 163 Tolal tax char 49 Page | 61 Magenta Living Report and financial statemenls for the year ended 31 March 2024 Notes to the Financial Statements 12.Tangible flxed assets: properties Group housing properties Shared Social Soclal Completed ownership housing housing shared housing propertl8s propertles ownership propertias held for under housing under letting construction propartles construction £'ooo £'ooo £'ooo £'ooo Total £'ooo Cost At 1 April 2023 Additions Work to existing propertie5 Schemes compleled Adjuslmenl- shared ownership Disposal of components Disposal - sales 290,558 258 10,530 27,154 30,445 15,997 2,446 127,154) 196 3,324 7,348 331,675 2,213 18,468 12,976 3,268 13,2681 (1961 {1.3341 (433) 11,3341 1433) At 31 March 2024 326,733 6,097 361,352 Depreclatlon and impalrment Al 1 April 2023 Depreciation charged in the year Impairment losses Released on disposal of components Releasèd on disposal - sales (100.6041 (9,9291 (22) 1,158 215 186) 1401 1100,690) 19,969) 122) 1,158 215 At 31 March 2024 109 182 126 109 308 Net Book valuè At 31 March 2024 217,551 6 097 252 044 Al 31 March 2023 189,954 30,445 3,238 7,348 230,985 Page | 62 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements Company houslng properties Shared Social Social Completed ownership housing houslng shared houslng propèrties properties ownorship properties held for under houslng under letting conslruction properties construction £'ooo £'ooo £'ooo £'ooo Total £'ooo Cost Al 1 April 2023 Additions Work lo existing properties Schemes completed Adjuslmenl - shared ownership Disposal of components Disposal - sales 294,470 258 10,530 27.154 31,299 16,130 2,446 {27,154) 196 3,324 7,543 336,636 2.250 18,638 12,976 3,268 13,2681 11961 {1,3341 (433) (1,334) (4331 At 31 March 2024 330 645 6 329 366,483 Depreclatlon and Impalrment At 1 April 2023 Depreciation charged in the year Impairment losses Released on disposal of components Released on disposal - sales <100,960) 19,941) (22) 1,158 215 (87) (401 (101,047) 19,981) 1221 1,158 215 At 31 March 2024 109 550 127 109,677 Net Book value At 31 March 2024 221095 6,465 6,329 256 806 At 31 March 2023 193,510 31,299 3,237 7,543 235,58g Impalrmenl of Houslng Propertles Housing properties are assessed at each reporting date to determine whether an indicator of impairment exisls, where there is evidence of impairment an assessment is carried out to estimate the recoverable amount of the asset. The recoverable amount is the higher of fair value less costs to sell and value in use. The recoverable amount is compared with the book value of the assel lor cash generating unit) and any write down is charged to the Statement of Comprehensive Income. Value in use is defined as value in use - service potential (VlU- SP), this is Ihe present value of the asset's remaining service potential plus the net amount the entity will receive from its disposal. Impairment loss of £22k {2023.. £nil) is recognised in the Statement of Comprehensive Income for the Group and the Company, representing properties Ihat have long-term voids. Page163 Magenta Living Report and financial stalements for the year ended 31 March 2024 Notes to the Financial Statements Housing properties, including offices, book value net of depreciation comprises.. Group Company 2024 2024 £'ooo £'ooo 2023 £'ooo 2023 £'ooo Freehold land and buildings - housing properties Freehold land and buildings - office properties (nole 13} 230,985 256,806 235,589 252,044 3,391 3.571 3,391 3,571 255,435 234,556 260,197 239 160 Social housing assistance.. Total accumulated social housing grant received or receivable al 31 March.. Group and Company 2024 2023 £'ooo £'ooo Held as deferred capital grants (note 24) Recognised in statement of comprehensive income 37,210 766 31,436 1,880 Expenditure on works to existing properties: Group Company 2024 2023 £'ooo £'ooo 2024 £'ooo 2023 £'ooo Components capilalised Amounts charged to income and expenditure account (note 3) 12,976 2,477 11,678 12,976 5,325 2,477 5,325 11,678 Total 18,301 14,155 18,301 14,155 Page | 64 Magenta Living Report and financial statemenls for the year ended 31 March 2024 Notes to the Financial Statements 13.Tanglble fixed assets: other Group and Company Furniture Computer f ixtures sand and office other fittings equlpment Equipment £'ooo £'ooo £'ooo Freehold office properties £'ooo Total £'ooo Cost At 1 April 2023 Additions 5,303 59 48 1,118 109 730 7,210 157 At 31 March 2024 107 730 Depreciation and impairment At 1 April 2023 Deprecialion charged in Ihe year {1,732) {180) {59) (5) (1,118) (10) {730) (3,639) (1951 At 31 March 2024 I￿1128)_ 730 3,834 Net Book value At 31 March 2024 3,391 43 99 3,533 At 31 March 2023 3,571 3,571 14.Intangible flxed assets Group and Company Software Total £'ooo £'ooo At 1 April 2023 Additions 1,310 706 1,310 706 At 31 March 2024 2,016 2,016 Amortisatlon Al 1 April 2023 Change in the period (1,310) (81) (1,310) (81) At 31 March 2024 .-(1,391) 1,391 Net Book value At 31 March 2024 625 625 At 31 March 2023 Page | 65 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements 15. Investment properties: non-social housing properties held for18tting Group and Company 2024 2023 £'ooo £'ooo At 1 April Revaluation 15,351 874 14,306 1,045 At 31 March 16,225 Properties are valued at Open Market Value as al 31 March 2024 based on the valuation by external RICS advisors and are held lo be leased to the Bamboo Estates. 16.Investment in subsidiary The Group comprises the following entities, all are registered in England and Wales and incorporated under the Companies Acl 2006.. Ownershlp RegisteredlNon. Natur8 of business registered Non-registered Build and design Non-registered Property development Non-registered Private rental Non-registered Dormant Name Wirral Partnership Homes (Developmenls) Limited Hilbre Projects LLP Bamboo Estates LLP Wirral Parlnership Homes {Building Services) Limited 100% 100% Wirral Partnership Homes (Building Services) Limited is a company limited by guarantee. Magenta Living is the sole guarantor and in the event of the Company being wouiid up, the liability of Magenta Living is limited lo £1. Effective 1st April 2008 tlie trade, assets and all liabilities of WPH (Bu ilding Services) were transferred lo the parent. The subsidiary has not traded during the year and is dormant. Hilbre Projects is a registered LLP which during the year had two rnembers. The controlling niember is Wirral Partnership Homes (Developmenlsl Limited, a wholly owned subsidiary of Magenta Living, that invested 60 % of the initial capital. The second member is Wirral Partnership Honies (Building Services) Limited. The current membership of Hilbre Projects LLP is held as Wirral Partnership Homes {Developmenls) Limited 99'/0, WPH Building Services Limited 1 % . The aggregate of share capital and reserves as at 31 st March 2024 and of the profil and loss for the year ended on that date for the subsidiary undertakings were.. Page | 66 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements Aggregate share capital Reserves £'ooo Profitl{Loss) £'ooo Wirral Partnership Homes Develo menls Limited 1,408 (45) Capital contribution £'ooo Members, interests £'ooo Profitl(Loss) £'ooo Hilbre Projects LLP Bamboo Estates LLP 120 90 (309) (50) 460 Investments in subsidiaries are,. WPH Dev Co £'ooo Hilbre £'ooo Bamboo £'ooo Total £'ooo At 1 April 2023 Additions 10 120 130 90 90 At 31 March 2024 90 220 17.Investment in jolnt venture Bamboo Estates is a registered LLP is a partnership belween Magenta Living and WPH {Developments) Ltd, with the Group holding 1000/0 interest. Torus62 left the partnership on 31 March 2023. This is now included as a subsidiary. 18.Properties for sale Group 2024 £'ooo Company 2024 £'ooo 2023 £'ooo 2023 £'ooo Work-in-progress Shared ownership- work in progress Shared ownership- completed 39 2,363 814 1,721 4.680 39 2,363 814 1,721 4,680 3,216 6,401 3,216 6,401 Page | 67 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements 19. Debtors Group 2024 £'ooo Company 2024 £'ooo 2023 £'ooo 2023 £'ooo Due within one year Rent and service charges receivable Less.- provision for bad and doubtful rent and service char e debts 2,210 (795) 1,415 3,146 1777) 2,369 2,204 {789} 1,415 3,146 (777} 2,369 Trade debtors Less.. provision for bad and doubtful trade debts Grants receivable Other debtors Prepayments and accrued income Amounts due from related enlilies Amounts due from group undertakings 2,063 619 2,063 619 (253) {129} 346 335 640 73 (253) (129) 346 278 640 73 520 1,226 1,592 1,201 1,592 356 Group 2024 £'ooo Company 2024 £'ooo 2023 £'ooo 2023 £'ooo Due after more than one year Other debtors 236 236 236 20.cash at bank and in hand Group 2024 £'ooo Company 2024 £'ooo 2023 £'ooo 2023 £'ooo Cash at bank and in hand 7,981 14,127 5,212 12,161 Page | 68 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements 21. Creditors: amounts falling due within one year Group 2024 £'ooo Company 2024 £'ooo 2023 £'ooo 2023 £'ooo Trade creditors Rent and Se￿iCe Charges received in advance Deferred capilal grants (note 24) Other laxation and social security Other creditors Accruals and deferred income Amounls due to group undertakings 1,765 2,078 464 708 989 10,922 2,528 1,987 360 498 1,386 8,011 1,757 1,987 2,526 1,987 464 652 987 8,758 1,833 360 490 1,385 5,236 2,809 16,926 16,438 Accruals and deferred income includes deferred income of £1,332k 12023., £2,100k) in respect of the Community Fund (note 26). 22. Creditors: amounts falling after more than one year Group 2024 £'ooo Company 2024 £'ooo 2023 £'ooo 2023 £'ooo Debt (note 23) Deferred capital grants (note 24> Recycled capital grant fund (note 251 Minority Interest 91,391 36,746 36 80 87,391 31,076 21 80 91,391 36,746 36 87,391 31,076 21 128,253 118,568 128,173 118,488 Page | 69 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements 23. Debt Group 2024 £'ooo Company 2024 £'ooo 2023 £'ooo 2023 £'ooo Between two and five years After five years 4,000 87.391 4,000 87,391 87,391 87,391 91,391 91,391 87,391 The £137.4m loan facility comprises £87.4m (2023.. £87.4m) of fixed rale and fully drawn debt, and a £50.Om revolving Credit facility at a variable rate for a 5-year term, of which £4.Om has been drawn in the year with a remaining £46.0m. The fixed debt is repayable by bullet in two tranches.. £42.4m (February 2037) and £45.Om {February 2047). The weighled average interest rate of the cost of borrowing in the year was 3.24 % 12023.. 3.14'/0). This loan facility has been secured by way of a charge of 7,018 stock transferred properties, representing 54.9 % of Magenta's property stock holding. The carrying value of this stock is £191 .1 m. 460/0 are now classified as either de-allocated or unallocaled units. The 7,018 units comprises of 5,769 units lo secure the Loan plus 1,249 units used to secure a £30.Om pension bond. 24. Deferred capltal grants Group and Company 2024 2023 £'ooo £'ooo At 1 April Grant received in year Amortisation of capital grant Released on disposal 31,436 6,176 (388) (14) 29,791 1,991 (346) At 31 March 37,210 The deferred income is included in t17e financial statements as follows.. Amounts lo be released within one year Amounts to be released in more than one year 464 36,746 360 31,076 37,210 31,436 Page | 70 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements 25. Recycled capital grant fund Group and Company 2024 2023 £'ooo £'ooo At 1 April Inputs lo fund: Grants recycled I nterest accrued 21 21 14 Recycllng of grant 36 21 Repayment of grants to the Homes England Al 31 March 36 21 Amounts 3 years old or older where repayment may be required. 26. Deferred income Group and Company 2024 2023 £'ooo £'ooo At 1 April Deferred income received in the year utilised in the year.. Wirral Borough Council Magenta Living 2,100 13 2,096 1781) 1,332 The deferred income is incliided as follows.. Amounts falling due within one year 1,332 2,100 1,332 2,100 Deferred income relales to monies paid into the Community Fund and monies received by Magenta lo fund future revenue projects. Further background regarding the Community Fund is given in nole 2. Related balances to the Community Fund are shown within cash at bank and in hand of £162k (2023.. £956k) The remainder of the balance is shown within deferred income payments received in advance. There was £781 k utilised in the year12023- £nil). Page | 71 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements 27. Employee pension schemes Summary of pension asseU{liability) (Group and Company).. 2024 £'ooo 2023 £'ooo Scheme MPF SHPS 6,952 {342) 7,199 (282> 6,610 6,917 Merseyside Pension Fund (MPF) The Merseyside Pension Fund is a mulli-employer scheme, administered by Wirral Metropolitan Borough Council under the regulations governing the Local Government Pension Scheme, a defined benefit scheme. The most recenl formal actuarial valuation was completed as al 31 March 2022. The employers, contributions lo the Merseyside Pension Fund by the Group and Company for the year ended 31 March 2024 were £996k (2023- £540k) at a contribution rale of 16.80/0 of pensionable salaries. The employer's contribution rale for Ihe year ending 31 March 2025 has been set al 16.8 %. Estimated employers, contributions lo the Merseyside Pension Fund during the accounting period commencing 1 April 2024 are £955k. Present values of defined benefit oblig81ion, fair value of assets and defined bgnefif asset (liability).. 2024 £'ooo 2023 £'ooo Fair value of plan assets Present value of defined benefit obligation Remeasuring adjuslmenl due lo asset ceiling 118,004 112,866 (105,268) (105,667) (5,784) Sur lus in 7,199 Page | 72 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements Changes in plan assets.. 2024 £'ooo 2023 £'ooo Opening fair value of plan assets I nlerest on plan assels Actuarial gainslllosses) Administration expenses Employer contributions Member contributions Benefits I transfers paid 112,866 122,081 5,374 3,394 1,634 (10,798) {51) {52} 996 540 686 706 (3,501) (3,005) Closin fair value of lan assels 118 004 112,866 The actual return on the plan assets (including any changes in share of assets) over the period ended 31 March 2024 was £7.009k (2023=1£4,088k)). Changes in presenl value of defined benefit obligations.. 2024 £'ooo 2023 £'ooo Opening defined benefit obligations Current service cost I nlerest cost Members contributions Past seNice cost Actuarial Igainsl Curtailments Benefilsltransfers paid 105,667 145,143 1,749 3,792 5,004 4,032 686 706 (4,338) (45,186) 185 (3,501) (3,005) Closin defined benefit obll ations 105,268 105 667 Defined benefit costs recognised in slalement of comprehensive income (SOCI).. 2024 £'ooo 2023 £'ooo Current service cost Effect of curtailments or settlements Administration expenses Past service cost Net interest {income)lexpense 1,749 3,792 185 52 51 (370) 638 Defined benefit costs recognised in statement of com rehensive income soci 1,431 4,667 Page173 Magenla Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements Defined benefit costs recognised in other comprehensive income.. 2024 £'ooo 2023 £'ooo Experience on plan assets (excluding amounts included in net interest cost) - gainl(lossl Experience gains and losses arising on the plan liabililies - (loss) Effects of changes in the demographic assumptions underlying the present value of the defined benefit obligation gain Effects of changes in Ihe financial assumptions underlying the present value of the defined benefit obligation - gain Remeasuring adjuslmenl due lo asset ceiling 1,634 {10,798) (533) {15,875) 1,356 414 3,515 (5,784) 60,647 Total amount reco nised in Other Comprehenslve Income- aln 188 34,388 Major categories of plan assets 8s a percentage of total plan assets.. 2024 2023 Equities Government bonds Other bonds Properly Cash I liquidity Olher 38.7 /. 24.4°/0 6.6% 8.30/0 9.2'/0 3.6% 19.7% Page | 74 Magenta Living Report and financial statements for Ihe year ended 31 March 2024 Notes to the Financial Statements Sensitivity Analysis.. +0.5% 1 year +1/0 +0.25°/0 +0.25 % increase in change change discount p.a. p.a. pay life investment investment rate Inflation growth expectancy return return £'ooo £'ooo £'ooo £'ooo £'ooo £'ooo Central £'ooo Liabilities 105,268 97,023 109,650 106,118 107,881 105,268 105,268 Assets (118,004) (118.004) {118,004) (118,004) (118,0041 (119,1751 (116,833) (12,736) {20,981) 18,354) {11 ,886) (10,1231 113,9071 (11,565) Surplus Projected Service Cost for next year 1,616 1,616 1,616 1,373 1,750 1,616 1,661 Projected Nel I nleresl Cosl for nexl year {6481 11,159} 1433) {6061 1520} 17051 (590) Principal actuarial assiimplions.. The main financial assumptions used by the actuary in calculating the figures for FRS 102 (Retirement Benefits} were.. 2024 2023 Discount rate Rate of increase in salaries Rale of increase in pensions Inflation assumption - CPI 4.10/, 2.7% 2.8'/0 2.7 /0 Mortality Assun7Ptions The post-relirement mortality assumptions adopted lo value the benefit obligalion at March 2023 are based on the S3PA CMI 2021 tables and S3PA CMI 2022 tables for March 2024 for both non-relired members and current pensioners. The assumed life expeclations on retirement at age 65 are= 2024 2023 Page | 75 Magenta Living Report and financial stalemenls for the year ended 31 March 2024 Notes to the Financial Statements Years Years Retlrlng today: Males Females Retiring in 20 years: Males Females 20.9 23.4 21.2 23.7 22.2 25.2 22.6 25.5 Soclal Houslng Penslon Scheme (SHPS) The company participates in the Social Housing Pension Scheme (the Scheme), a multi- employer scheme which provides benefits to some 500 non-associaled 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 al 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 arfangemenl,. 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 froni the Schenie. Participating employers are legally required lo meet their share of the Scheme deficit on an annuity purchase basis on withdrawal from the Scheme. For accounting purposes, a valuation of the scheme is carried oul with an effective date of 30 September each year. The liability figures from Ihis valuation are rolled forward for accounting year-ends from the following 31 March to 28 February inclusive. The latest accounting valuation was carried out with an effeclive dale of 30 September 2023. The liability figures from this valuation were rolled forward for accounting year-ends from the following 31 March 2023 to 28 February 2024 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 We were 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 uncertainly surrounding some of these changes. The Trustee is seeking clarificalion from the Court on these items, and this process is ongoing with it being unlikely to be resolved before mid-2025 at the earliesl.11 is estimated that this could potentially increase the value of the full Scheme liabilities by £155m. It should be noted that this estimate has been calculated as at 30 September 2022 on the Scheme's Technical Provisions basis, Until the Court direclion is received, it is unknown whether the full {or any) increase in liabilities will apply and therefore, in line with Ihe prior year, no adjustment has been made in these financial slalemenls in respecl of this. Page | 76 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements Present values of defined benefit obligation, fair value of assets and defined benefit asset (liability).. 2024 £'ooo 2023 £'ooo Fair value of plan assets Present value of defined benefit obligalion 1,386 (1,728) 1,414 <1,696) LDeficit in lan 342 282 Reconciliafion of opening and closing balances of fhe fair value of plan assets.. 2024 £'ooo 2023 £'ooo Fair value of plan assets at start of year I nleresl income Experience on plan assets {excluding amounts included in interest income) - Ilossl Contributions made by the employer Contributions by plan participants Benefits paid and expenses 1,414 70 2,522 71 (148) 93 11,240) 92 (43) (34) Falr value of lan assets at end of ear The actual return on the plan assets (including any changes in share of assets} over the period ended 31 March 2024 was (£78k)12023'.1£1,169k)). Reconcilialion of opening and closing balances of the defined benefit obligalion.. 2024 £'ooo 2023 £'ooo Defined benefit obligation at start of year Current service cost Expenses Interest expense Contributions by plan participanls Actuarial lossl{gain} due to scheme experience Actuarial {gain} due lo changes in demographic assumptions Actuarial {gain) due lo changes in financial assumptions Benefits paid and expenses 1,696 2,790 {3) 81 77 48 {17) (411 {431 (144) {4) (9931 134) Defined benefit obli ation at end of ear 1,728 1,696 Page | 77 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements Defined benefit costs recognised in statement of comprehensive income (SOCI).. 2024 £'ooo 2023 £'ooo Current seNice cost Expenses Nel interest expense (3) Defined benefit costs recognised in statement of com rehensive Income soci 15 Defined benefit costs recognised in other comprehensive income.. 2024 £'ooo 2023 £'ooo Experience on plan assets (excluding amounts included in nel inleresl cosl) - (loss) Experience gains and losses arising on the plan liabilities - Iloss)I gain Effects of changes in the demographic assumptions underlying the present value of the defined benefit obligation - gain Effects of changes in the financial assumptions underlying the present valLie of the defined benefit obligation - gain (148) (1,2401 144 {48} 17 41 993 Total amount recognised in Other Comprehenslve Income - loss 1138) (99) Page | 78 Magenla Living Report and financial statemenls for the year ended 31 March 2024 Notes to the Financial Statements Assefs.. 2024 £'ooo 2023 £'ooo Absolute Relurn Alternative Risk Premia Cash Credit Relative Value Currency Hedging Distressed Opportunities Emerging Markets Debt Global Equity High Yield Infrastructure Insurance-Linked Securities Liability Driven Investment Long Lease Property Net Current Assets Opportunistic Illiquid Credil Private Equity Private Debt Property Risk Sharing Secured Iiicome 54 44 27 46 (1) 49 18 138 15 10 53 43 26 140 161 36 651 43 565 54 60 55 56 81 41 63 61 104 65 Total assets Key assumptions 2024 /0 p.a. 2023 °/0 p.a. Dis¢ounl rate I nflation {RPI) Inflation (CPI I Salary Growth Allowance for commutation of pension for cash al retirement las a percentage of maximum allowance) 4.93% 3.08% 4.83 % Pagg | 79 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements The mortalily assumptions adopted at 31 March 2024 imply the following life expectancies at age 65.. 2024 Years 2023 Years Male retiring in 2024 {2023) Female reliring in 2024 {2023} Male retiring in 2044 (20431 Female retiring in 2044 (2043) 20.5 23.0 21.8 24.4 21.0 23.4 22.2 24.9 28.Financial commltments Capital expenditure commitments were as follows: Group and Company 2024 2023 £'ooo £'ooo Capital expenditure Expenditure conlracted for but not provided in the accounts Expendilure authorised by the Board, but not contracted 11,517 8,929 31,351 The above commitmenls will be financed primarily Ihrough current cash balances and the draw down under existing loan arrangements. 29. Operating leases Payments Total future minimum lease payments relate to the motor vehicle fleet and are sel out below.. Group and Company 2024 2023 £'ooo £'ooo Motor vehicles minimum lease payments Less than one year One lo five years 884 2,697 570 2,023 3,581 2,593 Page | 80 Magenta Living Report and financial stalemenls for the year ended 31 March 2024 Notes to the Financial Statements Receipts Total future minimum lease receipts relale to properties leased to Bamboo and are sel out below.. Company 2024 2023 £'ooo £'ooo Property minimum lease receipts: Less than one year One to five years 231 694 179 460 925 639 30. Contingent IlabS1ities There were no contingent liabilities at 31 March 202412023.. none). 31. Net cash inflow from operating activlties 2024 £'ooo 2023 £'ooo Surplusl(deflclt) for Ihe year 2,471 (1,140) Adjustments for non-cash items.. Depreciation of tangible fixed assets Impairment of tangible fixed assets Amortisation of intangible assets Revaluation of investment properties Share of profit on Joint Venture Distribution of 2022123 profil realised on joint veture Realisation of Bamboo investment las joint venture) Decrease l (increase) in properties for sale (Increase) I decrease in stock Increase in trade and other debtors Increase l {decreasel in trade and other creditors Pension costs less contributions payable Carrying amount of tangible fixed asset disposals 10,340 22 81 1874) 9.735 {1,045) {4581 39 660 341 1114) {2,026) 2,051 716 218 (786) (36) 526 (797) 3,398 720 Adjustm8nl for investing and financial acliviÈies.' Proceeds from the sale of tangible fixed assets Government grants utilised in the year Interest payable I nlerest receivable Taxation paid (1,776} (388) 3,102 (455) (4,108} (346) 3,604 (38) 113 Net cash g.enerated from o eratin activities 14,408 9,342 Page181 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements 32. Financial assets and liabilities Financial assets Other than short-term debtors, the Group financial assels held are cash balances held as cash at bank. They are sterling denominated and the amounts and interest rate profile at 31 March was: 2024 £'ooo 2023 £'ooo Floating rate Fixed rale 7,981 14,127 The floating rale financial assets attract interest al rates that vary with bank rates. The Group's financial liabilities are sterling denominated. The amounts and interest rate profile of the Group's financial liabilities at 31 March was.. 2024 £'ooo 2023 £'ooo Floating rate Fixed rate 4,000 87,391 87,391 87,391 £4.Om has been drawn down in 2023124 at an average variable rale of 6.20/0 {2023.' £nil). Fixed rate liabilities drawn down in 2021122 are at the fixed rales of 3.0 % on £42.4m and 3.3010 on £45.0m. Borrowlng facilities The Group has undrawn commilled borrowing facilities. The facilities available al 31 March in respect of which all conditions precedent had been met were as follows.. 2024 £'ooo 2023 £'ooo Expiring in one year or less Expiring in more than one year but not more than two years Expiring in more than two years 46,000 50,000 46,000 50,000 Page | 82 Magenta Living Report and financial statements for the year ended 31 March 2024 Notes to the Financial Statements 33.Analysis of net debt 1 April Non-cash 31 March 2023 Cash flow movement 2024 £'ooo £'ooo £'ooo £'ooo Grou Cash and cash equivalents Loans due within one year Loans due after one year 14,127 (6,1461 7,981 187,391) (4,000) (91,391) es In n8t debt 83,410 Non-cash movemen 1 April 2023 Cash flow £'ooo £'ooo 31 March 2024 £'ooo comp.any_ £'ooo Cash and cash equivalents Loans due within one year Loans due after one year 12,161 (6,94gi 5,212 (87,391) 14,0001 (91,391) es In net debt 75,230 86,179 34. Related parties There were no Board members who were tenants of Magenta Living during the year (2023.. none). There were no Board members who are elected member of Wirral Metropolitan Borough Council (2023: none}. Transactions with non-regulated entities During the year Magenta Living had intra group transactions wilh subsidiary Wirral Partnership Homes (Developments} Limited, an unregulated entity, of £3,529k (2023.. £11 ,91 Okl relating lo housing properly design and build services. A management charge of £157k12023: £268k} was made to Wirral Partnership Homes (Developments) Limited which was calculated on a pro-rata staff basis. The balance at the year-end due to Wirral Partnership Homes (Developments) Limited was £1,830k {2023.. £2,809k)- During the year Magenta Living has intra group transactions with subsidiary Baniboo Estates LLP of £305k {2023.. £337k). At the year-end, there was a balance due to Magenta Living by Bamboo Estates LLP of £104k {2023'. £73kl. During the year the Group had intra-group transactions with Hilbre Projects LLP, an unregulated entity, of £nil (2023: £nil} relating to management and build services. The balance al the year-end due to Magenta Living was £nil <2023: £nil). Intra-group loans and interest charges A loan facility, to a maximum of £20m, was provided by Magenla Living to Wirral Partnership Homes (Developments) Limited for on-lending lo Hilbre Projects LLP. Disclosures in relalion lo key management personnel are included in note 10. Page | 83