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← Magenta Living

2025-03-31-accounts

Company Registration No. 04912562 Registered Charity No. 1106969 Regulator of Social Housing No. L4435

A MAGENTA —| |VING— Annual Report and Financial Statements Year ended 31 March 2025

Magenta Living Report and financial statements for the year ended 31 March 2025 Contents

Contents
Page
Board Members, Executive Directors, Advisors and Bankers 1-2
Strategic Report 3-27
Report of the Board of Directors 28-35
Independent Auditor’s Report to the Members of Magenta Living 36-39
Consolidated Statement of Comprehensive Income 40
Company Statement of Comprehensive Income 41
Consolidated and Company Statements of Changes in Reserves 42
Consolidated and Company Statements of Financial Position 43
Consolidated Statement of Cash Flows 44
Notes to the Financial Statements 45-90

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Magenta Living Report and financial statements for the year ended 31 March 2025 Board Members, Executive Directors, Advisors and Bankers

Chair Ged Lucas

Other Non-Executive Directors
Stephen Allcock
Myles Edwards
Ann-Louise Gilmore
Liam Kelly
Michael Riley
Helen O’Doherty Appointed 10 October 2024
Paul Richards Appointed 10 October 2024
Robert Chapman Appointed 10 October 2024
Rachel Barber Appointed 10 October 2024
Julie Booker Resigned 31 March 2025
Susan Goodman Resigned 31 March 2025
Mike Turner Resigned 9 October 2024
Paul McGrady Resigned 29 April 2024
Chief Executive Officer Debi Marriott-Lavery Resigned 4 June 2025
Interim Chief Executive Officer Andy Lomas Appointed 5 June 2025
Executive Directors
Chief Operating Officer Andy Lomas Resigned 4 June 2025
Interim Chief Operating Officer Karen Dooley Appointed 5 June 2025
Chief People Officer Emma Adams
Chief Financial Officer Paul McGrady Appointed 19 August 2024
Chief Compliance and Sustainability Chief Compliance and Sustainability
Wayne Cole		 Appointed 18 November 2024
Officer
Chief Information Officer Ann-Marie Spencer Resigned 21 March 2025
Executive Director of Assets Ian Thomson Resigned 24 June 2024
Company Secretary Jamie Shaw

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Magenta Living Report and financial statements for the year ended 31 March 2025 Board Members, Executive Directors, Advisors and Bankers

Registered office Partnership Building
45 Hamilton Street
Birkenhead
CH41 5AA
Web site magentaliving.org.uk
Registered number Company Registration No. 04912562
Regulator of Social Housing Registration No.
L4435
Charity Commission Registration No. 1106969
External Auditors Beever and Struthers
Statutory Auditors
One Express
1 George Leigh Street
Manchester
M4 5DL
Internal Auditors Forvis Mazars
30 Old Bailey
London
EC4M 7AU
Solicitors Anthony Collins
Solicitors LLP
134 Edmund Street
Birmingham
B3 2ES
Bankers and The Royal Bank of
Funders Scotland plc
280 Bishopsgate
London
EC2M 4RB

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Magenta Living Report and financial statements for the year ended 31 March 2025 Strategic Report

Background

Magenta Living is a not-for-profit Registered Provider of Social Housing and registered Charity. We manage and develop social housing on the Wirral peninsular. As of 31 March 2025, Magenta Living owns and manages just under 13,000 homes and employs around 600 colleagues. We are the largest affordable housing provider in Wirral, providing homes to nearly 10 per cent of Wirral’s population. During 2024/25, we have invested £24m in our properties (including £10.2m in planned investment) and have ambitious plans to build over 1,000 new homes by 2030.

Everyone at Magenta is committed to provide excellent customer services with a focus on delivering social value that makes a positive impact for our customers, colleagues and communities.

Chairman's Foreword

This year marks the first year of delivery under our ambitious six-year ‘Road to 2030’ Strategy & Plan, setting the stage for growth, new technologies, investment in our homes, and enhanced service delivery for our customers.

The year has seen much change within the company with four new board members and two new members of our executive team all brought in to strengthen our governance and add to the skills and experience already in the business. Our development programme has begun to deliver more muchneeded homes, and we have worked closely with colleagues in Wirral Council and the Liverpool City Region to bring forward exciting new housing projects.

Our financial performance has been robust, with a turnover increase of £5.4 million to £82.6 million and an operating surplus of £9.1 million. These figures reflect our financial stability and mean we are well placed to deliver our aspirations in the coming year, despite the ever-increasing requirements placed on us.

Following reassessment in January 2025, we have been graded G1/V2. Our G1 grading demonstrates that we meet the regulators requirements in delivering good governance at the highest level. The V2 financial grading reflects the fact that we are financially robust but that we will need to continue to focus on value for money and efficiency to ensure we can meet the pressures of increasing costs in delivering services, maintaining existing homes, investing in decarbonisation projects and developing new homes.

Sustainability has been high on our agenda, and we have made further investment in energy efficiency upgrades and aligning our development projects with our net-zero ambitions. We are also working hard with our partners to deliver much needed projects to provide extra specialist housing, bringing forward brownfield sites for redevelopment and supporting regeneration sites in Birkenhead.

Looking ahead to 2025/26, we anticipate continued economic pressures, but our strong foundations and strategic focus on our Road to 2030 plan position us well to meet these challenges.

And finally, we are preparing for a significant transition in our executive leadership as we bid farewell to our Chief Executive, Debi Marriott-Lavery and the board would like to thank Debi for the transformative and empowering impact she has had on our organisation. Effective 5 June 2025, our Chief Operating Officer, Andy Lomas, has stepped into the role of Interim Chief Executive, ensuring stability and continuity as we begin the process of appointing a permanent successor.

I would like to thank our Board, management team, colleagues, and partners for their support and dedication, which have been pivotal in our achievements this year.

Ged Lucas Chair of the Board

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Magenta Living Report and financial statements for the year ended 31 March 2025 Strategic Report

Chief Executive’s Foreword

As we turn the page on another year, I’m proud to share my highlights of our first year operating under our Road to 2030 Strategic Vision & Plan – a year marked by momentum and meaningful progress.

Over the past year, we’ve made major leaps forward in ensuring we keep customers at the heart of everything we do – on their terms, not just ours. By equipping our people with smarter tools and expanding the ways customers can connect with us more digitally, we’ve created more choice, more convenience, and more control. With new tools like video remote assistance, a new customer portal, and a soon-to-be-launched customer relationship management and telephony systems, we’re more responsive, more personal, and more aligned with a deeper understanding of what matters to our customers.

This past year, we’ve also continued to build new homes to help meet the needs of our communities. We’re delighted to handover 68 homes during the year and are just as committed to the homes people already live in, from tackling damp and mould, improving efficiency, installing new components, and creating healthier homes.

We have also taken important steps to reshape our organisation to better meet the challenges ahead, bringing in new skills and talent, building a structure that’s agile, efficient, and aligned with our strategic priorities – the right people in the right place, doing the right things to deliver for our customers and communities.

We appreciate many are still experiencing financial pressures – and as a business, we’re committed to providing services that represent value for money, making careful and considered choices, delivering where it counts most.

We know we don’t always get everything right – and when we fall short, we listen and work to do better. We strive to continually improve and want to hear more from our customers about what’s working and what’s not so that we can be the kind of organisation we aspire to become.

As I write this, I’m preparing to step into a new chapter. I’ll be leaving the organisation this summer to move overseas – an exciting step but not without a touch of sadness. I’m immensely proud and it’s been a genuine privilege to spend time with our customers working alongside passionate colleagues in our communities. I have every confidence in the journey ahead for this wonderful organisation and the people it serves.

Thank you Debi Marriott-Lavery

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Magenta Living Report and financial statements for the year ended 31 March 2025 Strategic Report

Magenta Living’s Customer Strategy

Magenta’s customer strategy is built around a clear vision:

“We believe in opening doors to homes full of love, communities full of life, and a world full of possibilities—and will achieve this by consistently delivering great customer experiences”

The strategy is structured around five core objectives:

During the year we have undertaken lots of activities to try and achieve these objectives.

Communities

Communities Team at Magenta consists of a range of teams, including Neighbourhood Management, Community Safety, Sustainability Service, Community Regeneration.

One of the key successes was the complete letting of all available units at Sycamore Place, our new build Extra Care Scheme. This development brought much-needed housing and support to some of our vulnerable customers, ensuring they had a safe and comfortable environment to live in. The Neighbourhood Housing officers, through their dedication and hard work, made commendable progress towards achieving CIH qualifications of Level 3 or above. This demonstrated our commitment to professional development and improving service delivery.

The Community Safety Team, always proactive in addressing concerns, developed a comprehensive action plan to manage safety in our neighbourhoods. We opened a total of 309 anti-social behaviour and noise-related cases and closed 263 of them within an average of 109 days. Our participation in the 16 Days of Activism workshop showed our support against Domestic Abuse, raising awareness and providing resources for those affected. Meanwhile, the implementation of the Service Charge framework involved consulting with over 5600 customers, ensuring transparency and addressing their individual enquiries.

As of April 2025, we supported over 750 of our customers through Magenta’s sustainability service which involves helping them to sustain their tenancies by providing guidance on managing finances, accessing local resources, and maintaining their homes. With the launch of the No Access project, a lead officer was appointed to tackle access issues, crucial for maintaining property standards and safety. We completed Person-Centred Fire Risk Assessments (PCFRA) at our high-rise blocks,

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Magenta Living Report and financial statements for the year ended 31 March 2025 Strategic Report

emphasizing our dedication to customer safety. Finally, the approval of the Community Strategy 20262030 set a clear direction for future initiatives, reinforcing our commitment to long-term community development.

Social Value

We have embarked upon a review of our approach to social value calculation and are working on a social value roadmap which will be released in the 2025/26 financial year. This will underpin our strategic approach on the road to 2030.

In the interim, Magenta continues to use the HACT (Housing Associations’ Charitable Trust) Wellbeing Evaluation methodology and calculate figures using the Social Value Bank, regarded as an industry standard. In 2024/25, Magenta’s community regeneration activities generated over £44m of social value in local neighbourhoods, compared to the previous year’s figure of £30.2m. These efforts reflect our vision to opening doors to homes full of love, communities full of life and a world full of possibilities ensuring the customer is at the heart of everything we do.

Our Customers

Improving our customer experience is a key part of our Magenta Living Road to 2030 strategy and building a deeper understanding of our customers is a key enabler to deliver this. To improve, we need to understand our services through our customers' eyes, and our complaints process provides a key opportunity for us to understand more about experiences that could be better and use this learning to drive forward improvements.

Complaints handling saw significant improvements. As part of the annual Tenant Satisfaction Measures, we asked a sample of customers regarding their perception of how well we handle complaints. 43% of our customers were satisfied, up from 38% in the previous year. However, we appreciate that we have more work to do to improve our handling of complaints. The speed at which we deal with a customer service request and complaint, communication during their complaint, and the outcome are the three key areas customers have told us we need to work on to improve our complaints’ handling.

During the last financial year, we resolved a total of 961 Stage 1 and 138 Stage 2 complaints. 87.7% of Stage 1 complaints and 87.1% of Stage 2 complaints were resolved within Housing Ombudsman timescales. Where we need more time to resolve complaints, we will make customers aware of any delays and will outline the reasons why. To improve our performance against the Ombudsman timescales, we have reviewed our ways of working and resource to ensure efficient and effective complaint handling.

We received 8 determinations from the Housing Ombudsman in the last year. The Housing Ombudsman found maladministration in 47% of cases, compared with the national rate of 71%. We review all Housing Ombudsman determinations in detail and follow up on any learning identified to improve our processes and handling of customer complaints.

Over the last year, the top areas for complaints were: Heating and Hot Water – 18%

Damp, Mould, and Condensation – 7% Roofing – 7% Pest Control – 6% Plumbing – 7%

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Magenta Living Report and financial statements for the year ended 31 March 2025 Strategic Report

In 2025/26, we will continue to improve our ways of working within the Customer Experience team to drive improvements in those areas customers have told us that matter most to them.

It was also pleasing to see Magenta Living become a top quartile performer for dwellings vacant but available to let (%) at 0.11% and average re-let time in days (for standard re-lets) at 22.70 days. The Contact Centre achieved its best performance in 9 years with customer satisfaction peaking at 97.88% in August, while the average wait time was reduced to just 28 seconds during the same month. Rent collection remained robust, achieving 100% against a target of 99.8% at year end. Arrears as a percentage of annual rent debit consistently stayed below the target of 2.92%, ending at a commendable 1.77% for the same period.

Our Homes

Repairs and Maintenance

Property Services has performed well this year in terms of performance against targets, completion of projects and service improvement initiatives.

We enhanced our repair service offer to customers last year by triaging repairs using Video Remote Assistance (VRA) technology. This helped ensure customers got the right repair at the right time. We also launched a new digital customer portal for customers. This has given them more options for reporting repair requests to us. A new subcontractor framework went live, again improving customer service and generating better value for money. We dealt with all requests from customers who identified damp, mould and condensation problems in their homes and we are actively eliminating the occurrences of these within our customers’ homes. Consequently, reports have dropped by 17% in 2024/25 compared to the previous year. We also experienced less than half the disrepair cases from customers when compared to the previous year. Performance of our internal team, Property Services (excluding sub-contractors) compared favourably against targets:

Target Performance
% of Emergency Repairs Complete in Time 99% 99.3%
% of Non-emergency Repairs Complete in Time 93% 91.8%
Average Calendar Days to complete Non-Emergency Repair 16 days 16.2 days
Overall Satisfaction with Repairs Service 91% 90.1%
% Appointments Made and Kept 96% 96.4%
% Repairs Completed Right First Time 93% 95.7%

A cross-departmental team reviewed our repairs and maintenance services. This project was called ‘Repairs Reimagined’ and resulted in reduced demand on stretched services, streamlined operations, improved IT systems and use of data and new measures were put in place to ensure tighter controls and improved performance for all subcontractors and suppliers.

These procedures were then scrutinised by the Magenta Communities and Customer Committee who gave further recommendations - these have now been implemented and built into our contract documents. As an example, we have engaged with a new contractor for our grounds maintenance contract. This contractor, Idverde, is now providing improved value for money and customer service. Similarly, following feedback from customers, we are re-tendering our gas servicing and maintenance contract which will commence in September.

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Magenta Living Report and financial statements for the year ended 31 March 2025 Strategic Report

Building on this, The Social Housing Consultant (TSHC) was employed in the final quarter of last year to carry out a fundamental review of the Property Services department. This provided us with an extensive action plan to ensure our repairs and maintenance services are even more customer centric and compliant with customer service standards.

Strategic Asset Management

Magenta Living recognised the importance of Asset and Sustainability agenda at an Executive level within the industry by appointing Wayne Cole as Chief Compliance & Sustainability Officer in November 2024. Wayne’s leadership has already been pivotal in driving the Road to 2030 agenda forward, ensuring that Magenta Living remains at the forefront of service quality standards. Wayne has also made a significant impact in advancing our sustainability initiatives and ensuring compliance with industry standards.

This year sees a low point in our investment plan; ahead of increased component replacement requirements in forthcoming years aligned to the 20-year anniversary our inception as a LSVT.

During the year we’ve completed the following investment works:

Stock Condition Survey

We now report Stock Condition Survey (SCS) performance through the Monthly Compliance & Sustainability Report (CCSO) report. Our year end position was 88.7% for SCS completed inside the last 5 years. During the financial year we completed 1,244 SCS.

All properties without a valid SCS inside the last 5 years received visits through the year. However, as most housing associations are experiencing; we too are having access issues. We have a monthly meeting with colleagues in our Neighbourhoods team to discuss access issues. We have now aligned our no access protocols for property compliance activities with those of the neighbourhoods team so there is one consistent approach to dealing with no access.

Proactive Asset Management Strategy

Magenta operates a robust Proactive Asset Management Strategy, using data to make informed decisions about future investments in our stock. The team also provides a safety-focused service to

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Magenta Living Report and financial statements for the year ended 31 March 2025 Strategic Report

customers and promotes an integrated approach to deliver value for money in maintenance and improvement services. This ensures that Magenta's homes are well-maintained and safe for residents.

Magenta is continually investing in its existing homes to ensure they meet modern standards and expectations. We regularly update the Net Present Value (NPV) of each property to better understand the balance between investment needs and returns.

Magenta's Climate Change strategic framework commits the organisation to becoming a Zero Carbon Housing Association by 2050. Over the next five years, it plans to:

Following testing by the Building Research Establishment (BRE), three out of eight high-rise flat blocks owned by Magenta required the removal of external wall insulation cladding due to it being classified as an unfavourable system. Arcus, an external consultant, was commissioned to project manage these works. The contract, which began in April 2024, cost a total of £2.3m and is now complete. A bi-weekly call was set up including all key stakeholders to discuss any Higher Risk & Complex Buildings which ensures a focus on communication and project management while maintaining customer safety and wellbeing. Customers have been consulted and supported throughout the process, and we are currently in the planning process of re-cladding the affected buildings.

Sustainability and Environment

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Magenta’s Climate Change Framework is dedicated to reducing its carbon emissions and enhancing climate resilience in housing. Magenta commits to ongoing learning, adapting, and implementing innovative methods to improve its sustainability efforts. We have a 30-year, three-phase strategic framework targeting an 80% reduction in carbon usage by 2040 and achieving net zero by 2050.

Our latest SHIFT accreditation was ‘Silver’ for our environmental accomplishments. Magenta has allocated additional resources to establish a robust and capable sustainability team within the organisation. This team leads and collaborates with all partners on every aspect of sustainability.

Magenta has achieved the Bronze Carbon Literate accreditation after training several Board members, the Executive Team, and colleagues. Over the next two years, Magenta aims to achieve silver accreditation. Our ‘Green Team’ will be the voice for all things sustainability, encouraging collaboration among employees and customers to advance its 30-year plan.

Target setting & responsibilities

This report follows the HM Government Environmental Reporting Guidelines, including streamlined energy and carbon reporting guidance from March 2019. The objective is to reduce gross scope 1, 2, and 3 CO2e emissions per property by 2% annually, with a performance reduction of 10% reported this period. Gross global scope 1 and 2 emissions in tonnes of CO2e per number of portfolio properties serve as the standard metric. Intensity metrics are compared yearly, and no carbon offsetting activities were recorded during this period.

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Magenta Living Report and financial statements for the year ended 31 March 2025 Strategic Report

Streamlined Energy and Carbon Reporting

Reasons for change in emissions

This is the fifth year of reporting under SECR. The current emissions compared to the base year (April 2019 – March 2020) have decreased by 350.4 tonnes of CO2e, a 15% decrease. The emissions haven’t dropped as much as in previous years, as there has been an increase in company and private transport. The main factors causing this reduction are the significant decreases in both the use of natural gas and electricity, where emissions have been reduced by 24% and 15%, respectively.

Business travel

Activities relating to travel are limited to company owned and employee-owned vehicles for business use. Increases in business travel is due to the recruitment of professional/skilled employees and associated travel expenses if they live beyond a 25 mile radius. We do however promote use of public transport where feasible.

Exclusions and Estimates

There are no data exclusions in this reporting period. 16% of the electricity consumption has been estimated in this report due to a lack of invoices from the supplier.

Energy efficiency actions

During 2024/25, Magenta installed External Wall Insulation on 86 homes. 182 homes were retrofitted as part of the Wave 2 Social Housing Decarbonisation Funding (SHDF) across years 2023/24, 2024/25 and including 2025/26. This built upon our initial Wave 1 programme where we installed External Wall Insulation on 98 homes. Magenta has been successful with our Warm Homes: Social Housing Fund Wave 3 Liverpool City Region consortium bid which will see funding in excess of £910k to retrofit around 250 properties. We also completed our first Net Zero retrofit pilot seeing 3 homes have Solar PV and air source heat pumps fitted.

In total including the SHDF programme and other retrofit works, we’ve seen 148 homes move to EPC+ which is a positive step towards our Road to 2030 target for all homes to be EPC C+ by 2030. A full breakdown of EPC performance for our homes can be seen in our latest ESG report.

As an organisation, we are committed to learning more and adapting to new ways in which we can improve our sustainability, and we hope to be recognised as leading the way in the housing sector. Magenta is exploring decarbonisation at Partnership Building and St Mary’s Gate by examining energy use, ventilation, green procurement, IT, commuting practices, recycling, and water consumption, aiming to fully decarbonise in-house services over time. We have already cut energy use in 2024/25 with timers for lighting and heating, reduced printing due to digital shifts, and installed 115 low-energy LED lights in office spaces.

As part of Magenta Living’s Development of our Sustainability and Decarbonisation strategy we have partnered with Liverpool John Moores University to utilise their impressive data science and sustainability team. This partnership will help Magenta map out statistical analysis of our stock profile and better future proof the business and customers against the demands of climate change and NetZero.

Empty Homes

We have had a really positive year on Empty Homes. The project to reduce the time that homes are empty has been ongoing since Spring 2023 and has led to the improvements in our performance, culture, processes and customer journey. We let 658 properties in 2024/25 starting the year with an average relet for all voids of 57 days reducing to 45.8 cumulative position at year end.

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Magenta Living Report and financial statements for the year ended 31 March 2025 Strategic Report

Our Allocations team have reduced the ready to let timeframe from 13.3 days in April 2024 to an impressive 5 days in March 2025 – this has not only been key to supporting reductions in overall relet timeframes but also greatly improves our customer journey, getting customers into their new homes quicker than ever. We have seen improvements to customer satisfaction across our service area, partly due to our fantastic Customer Enhancement offer, including carpets and paint packs – ensuring we welcome our customers with as much support as possible.

We have ambitious targets for the year ahead, with an empty homes review planned for May to reinvigorate our processes, reassess our standards and realign with our customer journey.

Compliance & Building Safety

The Compliance & Building Safety Team made progress with the new compliance software project which we are hoping to launch during the next financial year, this will ensure robust data management and regulatory assurance. One of the main projects completed within the team during 2024-25 was the Window Restrictor Project which saw restrictors fitted on over 540 high rise properties ensuring the safety and security of our customers. We have also installed restrictors on all communal windows within our high-rise buildings.

Compliance performance has remained high across the big six elements with the compliance team continuing to work hard alongside our specialist contractors to maintain the level of performance required to keep both our customers and Magenta Living safe. Where under-performance exists, we continue to work with our contractors and key stakeholders to address in a timely manner.

Current areas of challenge are predominantly around access to customers' homes, which is now being managed internally by our No Access Neighbourhoods Team. By bringing this service in-house, rather than outsourcing the initial stages to a solicitor, we have achieved substantial savings of over £350,000. This considerable saving enables us to re-invest these funds into more critical areas that require financial support.

The table below details our current validated position as of 31 March 2025

Compliance Area KPI Validated
Performance
@ 31/03/25		 No. of Units
“Out of Date”
Gas Servicing
(Properties that have a gas
supply)		 KPIG1 -
Domestic Properties		 100.00% 0
Electric 5 Yearly EICR
Inspection & Test		 KPIE1 - Domestic
Properties		 99.99% 1
KPIE2 - Communal
Assets		 100.00% 0
Asbestos Survey & Inspections
(Communal Inspections)		 Asbestos Survey & Inspections
KPIA1 - Asbestos Surveys
in date		 100.00% 0
Lift Inspections KPIL1 - LOLER Inspection 100.00% KPIL1 - LOLER Inspection 100.00% 0
KPIL2 - Passenger Lift
Maintenance		 100.00% 0

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Magenta Living Report and financial statements for the year ended 31 March 2025 Strategic Report

KPIL3 - Domestic Lifts &
Hoists		 100.00% 0
Fire Safety
(Risk Assessments)		 KPIF1 - Risk Assessments
in date		 100.00% 0
~~L~~egionella KPILE1 - Risk
Assessments in date		 100.00% 0
KPILE2 – Temperature
monitoring		 97.37% 1

Health & Safety

The year has seen significant progress and challenges for the Health and Safety Team, with numerous initiatives and improvements implemented. Key highlights include the formal Health and Safety induction of all Magenta Living contractors in October 2024 as part of the Proactis procurement management system, followed by contractor management training sessions for over 40 employees, leading to better contractor risk management and control. In December 2024, the Winter Planning Standards were released in collaboration with various teams, identifying winter hazards and control measures to ensure safety during adverse weather conditions. In early 2025, the team enhanced the lone worker system (Safe Hub) and audited Road Traffic Accident (RTA) data, resulting in recommendations to improve driving culture and reduce vehicle-related accidents.

The Essential Risk Appraisal (ERA) programme concluded in May 2024, identifying significant risks and enabling strategic targeting. The introduction of an in-house Hand-Arm Vibration (HAV) assessment process in 2024 saved approximately £4,800 in annual health surveillance costs. Over the past 12 months, there were 411 accident, incident, hazard, and near-miss reports, accounting for 60% of reports since April 2021, thanks to proactive reporting and the e20 dashboard. The average time for incident investigations reduced from 6 days to 2 days, allowing more time for productivity. The year concluded with a focus on improving health and safety management systems, including developing electronic audit checklists and enhancing communication methods to ensure compliance and safety across the organisation.

Development and Regeneration

The development pipeline saw a surge in opportunities, with conditional bids accepted for 101 homes across various sites. The team also secured a grant of £520k from Homes England for 8 MMC homes. Key performance metrics showed mixed results: while approvals met the target with 18 units, starts on site were behind target. Sales targets were also impacted, with delays at certain sites and unsold homes affecting rent income. Despite these challenges, the team achieved several milestones, including the handover of 49 properties at Three Sails Point, sale of the final Shared Ownership home at Woodnoth and the progression of bids for 101 S106 homes.

Collaborative efforts were also highlighted, with the team working on the specification to reflect sustainability targets. The year concluded with a focus on addressing challenges, such as contractor due diligence to avoid insolvency and planning delays, while celebrating achievements like the successful sale of homes and securing grants for future projects.

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Magenta Living Report and financial statements for the year ended 31 March 2025 Strategic Report

Development Local Authority Tenure Tenure No. Units No. Units
Handover
Hatters Chase, Sandymoor Hatters Chase, Sandymoor Halton PRS 7 Dec 24
Deva Green, Chester Cheshire West & PRS 6 Dec 24
Chester
Maple Grove MMC, Bromborough Wirral Maple Grove MMC, Bromborough Wirral AR 6 Mar 25
Three
Sails		 Point Phase 1, Halton AR, RTB, 49 Mar 25
Widnes SO
Total 68

A key focus was maintaining relations with Wirral Council, responding to the Local Plan Main Modifications, and supporting the development of masterplans for Birkenhead. Magenta continues to be involved in Ion’s Hind Street proposals, with funding confirmed for the demolition and infrastructure work. Stakeholder engagement has been robust, with quarterly meetings with MPs and regular engagement with local leaders. Policy consultations were extensive, with Magenta influencing key local and national exercises, including planning, right to buy, and rent policy reform.

Collaborative efforts with LCR, Northern Housing Consortium, and National Housing Federation further strengthened their political and policy engagement. A priority for 2025/26 is to produce a Magenta-focused masterplan for the Seacombe corridor.

Sales Summary

Magenta Living’s Sales team delivered 80 shared ownership completions across six key developments. From Willow Sands in West Kirby to Halton Court in Runcorn, our average share sold ranged from 37% to 52%, reflecting both affordability and demand. Woodnoth Grange in Shavington stood out with all 23 plots completed and a consistent 40% average share. Meanwhile, McKelvey Way in Audlem presented a unique challenge as seven plots were converted to Rent to Buy, with three later transitioned to shared ownership—demonstrating our flexibility in meeting evolving market needs. Despite delays at Three Sails Point (TSP), completions continued steadily, and we exceeded income expectations thanks to higher-than-budgeted sales values.

We also welcomed audits from Homes England on our shared ownership sales at Clifton Avenue, Halton Court, and Woodnoth Grange, all of which returned “Substantial” results—affirming our commitment to compliance and quality. Looking ahead, all 22 shared ownership homes in Phase 1 of Three Sails Point were reserved off-plan, with completions already underway. As we prepare for the 2026 launch of Pasture Road, our pipeline remains strong, supported by a growing Rent to Buy portfolio and a clear focus on customer choice and tenure flexibility.

Development Site Units Sold Average Share%
Willow Sands, West Kirby 11 44%
McKelvey Way, Audlem 1 40% (SO only)
Hawthorn Grange, Eastham 11 43%
Halton Court, Runcorn 16 52%
Stanley Gardens, Bromborough 12 37%
Woodnoth Grange, Crewe 23 40%
Total Shared Ownership 80

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Magenta Living Report and financial statements for the year ended 31 March 2025 Strategic Report

Impairment Review

During the year we conducted a review of our assets and determined that there was a small impairment of £57k on void properties (2024: £21k).

Our Business

2024/25 has been a significant year of change for Magenta Living. We successfully completed the first full year of our Road to 2030 plan, achieving key targets. Our executive team saw substantial changes with the appointments of a new Chief Finance Officer, Chief People Officer, and Chief Compliance & Sustainability Officer. Additionally, our Chief Information Officer left the business at the end of the year and was not replaced. We also strengthened our team by recruiting new colleagues into key senior roles. Our CEO, Debi Marriott-Lavery, announced her departure and move to Australia, so the recruitment of a replacement CEO is currently underway. Our current Chief Operating Officer, Andy Lomas, has been appointed as Interim CEO.

Change & Innovation

During the financial year of 2024/25, we made notable strides in the Change & Innovation Team. We successfully completed the Device Refresh Project ahead of schedule and under budget, and implemented Video Remote Assistance, which improved repair triage accuracy by 40%. Successfully deploying the Salesforce system for handling out-of-hours services without downtime, we ensured that our services remained consistently available to customers. This benefits our business by maintaining operational efficiency, reducing disruptions, and improving customer satisfaction. For our customers, it means uninterrupted access to services and support, enhancing their overall experience with our organisation.

Key events included the creation of a technology roadmap, and the launch of digital rent and garage payments project aimed at enhancing My Magenta Portal, giving customers and colleagues greater independence from call-centre queues and a digital option to self-serve. A significant partnership with a telephony system provider was agreed in November, paving the way for removing desk phones and on-site requirements for Contact Centre staff, cutting costs, and introducing call recording and transcription for improved service accountability. The introduction of the innovative Put It Right (PIR) Tool reduced complaint escalations by an impressive 40% during pilot phases.

All of the above projects reflect our commitment to innovation and operational excellence, positioning Magenta Living as a forward-thinking leader in the housing sector.

People

We have been actively building and maintaining relationships with both internal and external Trade Union colleagues. After discussions with colleagues, we understood that it was important to property services to feel that they were treated the same as other colleagues in terms of contracted hours as well as feedback regarding sick pay.

2024/25 was the first year that we were able to agree proposals with union representatives ahead of the new financial year, this meant that the new pay deal was reflected in April 2025 pay packets. The accepted proposal saw an improved benefits package for all colleagues, including a 2.7% pay increase for all employees, improved sick pay, salary sacrifice on pension payments, equal working hours for Property Services colleagues, and a day off for birthdays. We look forward to continuing to building and maintaining our relationships with our TU colleagues moving forward.

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Magenta Living Report and financial statements for the year ended 31 March 2025 Strategic Report

As part of the People Strategy and in line with some of the discussions during pay negotiations we have committed to review current working practices in line with customer expectations and the business' target operating model, this will be carried out through the Ways of Working Steering Group.

Colleague Voice remains a crucial part of our communication strategy, ensuring that any messages or changes are discussed with Colleague Voice first to address any concerns before being communicated to the wider workforce.

Our adjusted target for absence was 3.5%, and we achieved an annual absence rate of 3.1%, equating to 5.9 days per worker, which is below the CIPD survey average of 7.8 days per worker. While overall absences have decreased, mental health-related absences have increased, primarily due to personal stress.

Metric Target Actual Comparison
Absence Rate 3.5% 3.1% Below CIPD survey average of 7.8 days per
worker
Absence Days per N/A 5.9 days Below CIPD survey average of 7.8 days
Worker
Retention Rate 85% 90.28% Higher than national average of 66%

A benchmarking exercise revealed that our salary range is generally within the median, though some roles fall within 10% of the market median and are paid below it, potentially affecting talent retention and recruitment. Our reward strategy includes a complete rebranding of our reward package to ensure it is current and provides value for both the business and employees.

Gender Pay Gap Report

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Our 2024 gender pay gap results show our mean hourly gap has moved closer towards zero meaning that there is minimal difference between how we pay women and men, a pay gap of zero would demonstrate a fairer and more equitable environment.

Our results show that females are paid on average 0.60% per hour more than males. We are really proud of these results, it shows we are very nearly at a zero-pay gap, compared to the wider UK results shared in 2023 of 14.2%.

At the time of the report, 41.04% of employees were female, up from 40.89%, and 58.96% were male, down from 59.11%. The Property Services division has a higher number of male employees, which is consistent with trends in the wider sector. It continues to be a focus for Magenta Living to encourage more females to pursue careers in these types of industry.

We publish a separate Gender Pay Gap Report which is available on our website.

Communications

We launched the ‘Road to 2030’ strategic vision and developed the Magenta Marketing Strategy during the year. We also improved customer engagement and communications and started Magenta Living’s 20th Anniversary campaign. The new Brand & Marketing Director was appointed in May 2024 and has actively collaborated with strategic leads to identify marketing opportunities, improve communication, and elevate the Magenta brand. Challenges included managing reliance on external suppliers for graphic design which has now been resolved by bringing this function in-house.

Key events included enhancing how Magenta’s campaigns impact its employees such as the employee recognition program ‘Share the Love’, rebranding colleague benefits, wellbeing, and ED&I campaigns.

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Magenta Living Report and financial statements for the year ended 31 March 2025 Strategic Report

Social media performance improved, with increased engagement and reach across LinkedIn, Facebook, Instagram, and Twitter. The team also launched the new staff newsletter, "The Thread," and supported various events and campaigns, including PRIDE month and the First Word Project.

Procurement & Commercial

In 2024/25 Magenta procured over 35 contracts with a combined total contract value of £34.3m. Market conditions as a result of inflation and cost of living slowed which meant that while there were challenges, price increases and shortages in some product areas and in skilled trades has subsided and we were able to procure and manage contracts with more certainty. Magenta have been able to deliver over £1m cashable savings as an organisation wide approach to VFM, with a number of savings coming in the form of reduced headcount, outsourcing, operational and supply chain efficiencies that the procurement team have been at the heart of.

We have procured a number of contracts throughout the year including further waves of SHDF works, a new telephony system provider, IT Hardware supplier and decorating vouchers for our customers. We also extended our Travis Perkins contract by two years, taking our entire agreement with them to 12 years. The business also implemented the new responsive and voids framework opening up new contractors with more competitive rates to supplement the delivery of works delivered by our in house team.

IT & Data

The team implemented a new technology strategy, which involved replacing the legacy infrastructure and strengthening security across all sites, resulting in improved performance and reliability across the network. Business continuity and IT disaster recovery plans were tested regularly throughout the year, and new information security policies were introduced.

A device refresh programme was started, to replace all of the laptops, tablets, and mobile phones across the network. The mobile phone contract was re-procured resulting in an annual saving of £100K. New systems such as telephony, finance, customer self-service and customer relationship management (CRM) were implemented, to the benefit of both customers and colleagues.

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Magenta Living Report and financial statements for the year ended 31 March 2025 Strategic Report

A new data warehouse was introduced to improve reporting and decision making, and a procurement exercise was undertaken for a new strategic partner to build a new data lake utilising the latest Microsoft technology. The team achieved three-star accreditation from the Service Desk Institute (SDI), which was a reflection of the excellent customer service that they deliver to the rest of the business.

Treasury & Finance

In 2021/22 Magenta refinanced, securing £137m in funding provided by NatWest to support its investments, carbon neutrality goals, and development ambitions. As of 31 March 2025, £96.4m of the total facility was drawn, with the remaining amount available, to be used as needed. This facility was due to be repaid February 2027 however negotiations with NatWest meant that this was extended to February 2028 with our covenants re-negotiated at the same time. It is likely that Magenta will be conducting a financing exercise in 2025/26 to ensure it can continue with its development plan.

Cash Flow and Liquidity

The net cash inflow from operating activities before interest expenses was £20.5m (2024: £14.4m). Bank balances and short-term investments stood at £8.2m (2024: £8m) at the fiscal year-end.

Covenant Compliance

The covenants relevant to the loan agreement include:

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Covenants 2024/25 Lender Covenant Golden Rule
Interest Cover EBITDA MRI 2.62 1.10 1.30
Interest Cover EBITDA 5.90 1.70 1.90
Gearing *Hist cost only 0.23 0.60 0.50
Asset Cover (charged properties) 2.92 1.10 1.25

During the year, Magenta agreed with NatWest to change Interest cover from EBITDA MRI to EBITDA only. This has improved covenants and gives significantly more headroom. As of 31 March 2025, the Group remained compliant with all covenants.

Magenta has revised its business plan, considering recent internal and market-driven challenges. The company updated its development and investment strategies based on the most current information to guide its assumptions. This adjustment comes amidst a rapidly evolving economic landscape where interest rates and inflation have significant effects across the plan.

Payment of creditors

In line with government guidance, Magenta’s policy is to pay purchase invoices within 30 days of receipt, or earlier if agreed with the supplier. It will comply with all of the requirements of the new Supplier Payment Practices and publish its supplier payment performance accordingly. Payment

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Magenta Living Report and financial statements for the year ended 31 March 2025 Strategic Report

performance within 30 days for the financial year was 63%. We introduced a creditor payment system as part of our new finance system which has faced significant issues and has contributed to lower performance than expected; we are working hard to improve this.

Bamboo Estates

In order to generate surplus and capacity for investing in new homes and community regeneration, the Board established Bamboo Estates.

Bamboo Estates operates as a partnership between Magenta Living and Wirral Partnership Homes (Development) Limited, a subsidiary of Magenta Living which remains a viable entity, managing 126 properties leased to Bamboo from Magenta. Bamboo also benefits from Rent to Buy property lettings and management.

This financial year Bamboo acquired 13 high quality new family homes to add to the portfolio– 6 homes in Chester and 7 homes in Halton, these were bought at a discount and have achieved a high market rent. A review of Bamboo Estates will be conducted in Summer 2025, with the intention of doubling the PRS portfolio to increase profitability, enhancing the quality and competitiveness of customer service and offerings in the private sector market. Our intention is that this will include returning some of the original properties to Magenta as they become void.

Bamboo has committed to reinvesting all profits earned into internal subsidies for the development of new social properties on Wirral. The £457k generated in 2024/2025 will be allocated to Magenta Living to support this initiative.

Value for Money

The Board of Magenta Living approved its Value for Money (VfM) strategy in March 2021. The strategic approach recognises that VfM is not just about cutting costs; it is about understanding the ‘Value Chain’, and optimising the Economy, Efficiency and Effectiveness of everything the company does. This is achieved by considering VfM across all elements of the business including its business plan and budget, its BAU activity such as commercial contract negotiations and its forwardlooking activity including service improvements plans and transformation Strategy.

To support the optimisation of the Value Chain, Magenta has implemented Policies and Principles which includes detailing activities which the company will and won’t consider in its drive to deliver improved VfM. These principles recognise the importance that different elements of the business play in ensuring we are able to achieve value for money and includes consideration of or strategic objectives, improvement plans, our colleagues and our assets and their sustainability

The Regulator of Social Housing’s Value for Money Standard 2018 sets out its required outcomes and specific expectations of registered providers and their approach to Value for Money. Magenta Living has completed a self-assessment against the VfM Standard, and gains assurance that VfM is being achieved from a variety of sources including:

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Magenta Living Report and financial statements for the year ended 31 March 2025 Strategic Report

Performance against the RSH (Regulator of Social Housing) VfM Metrics

The following tables provides fuller details of Magenta’s performance against the RSH’s VfM metrics and future plans.

Backward Look Current Year Backward Look Current Year Backward Look Current Year Forward Look Forward Look Forward Look
Metric 2023/24
Performance		 2024/25
Actual		 2025/26
Budget/
Target		 2026/27
Fcast/
Target		 2027/28
Fcast/
Target
Reinvestment %
New Supply % (social)
New Supply % (Non-social)
Gearing %
EBITDA MRI (Interest cover)
%
Headline Social Housing
Cost Per Unit £
Operating Margin Social
Housing %
Operating Margin overall %
Return on Capital Employed		 10.00%
1.30%
0.00%
33.00%
151.70%
£5,544
3.00%
3.00%
0.70%		 8.88%
0.31%
0.00%
33.25%
209.87%
£5,738
5.96%
7.96%
2.73%		 11.76%
1.21%
0.09%
39.09%
137.76%
£6,108
5.14%
9.51%
2.78%		 10.68%
0.71%
0.09%
43.04%
65.26%
£6,538
6.27%
15.41%
4.54%		 8.19%
1.06%
0.09%
42.00%
97.71%
£6,561
10.25%
15.72%
3.92%

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.

Metric 2023-24
Performance		 Performance
2024-25
Budget/
Target		 2024-25
Performance		 Performance
RAG
Status		 Status
2025-26
Target		 2025-26
Comments and future plans
Empty Homes
Repair Cost £		 Repair Cost £
£5,893		 £5,400 incl.
VAT		 £6,300 £6,300 Average Empty Homes Repair
Costs were above target for the
financial year, primarily due to the
scale
of
refurbishment
works
required including a significant
proportion
of
high
value
programmes where the decision
was made to proceed with works in
the majority of instances. A range of
Empty
Homes
improvement
opportunities have been identified
through
the
Social
Housing
Consultancy critical friend review of
structures and processes within
PropertyServices as well as the

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Magenta Living Report and financial statements for the year ended 31 March 2025 Strategic Report

~~pt]~~ ~~pt]tT~~ ~~tT~~ Property Services Improvement
Plan activity informed by four
Empty Homes process review
workshops.
Both
reviews
highlighted
the
importance
of
reviewing the Lettable Standard
which
has
now
commenced.
Greater scrutiny of empty homes
refurbishment programme totalling
more than £4,000 is also currently
being employed and high value
property
refurbishment
programmes will continue to be
referred
for
Option
Appraisal
review.
Empty Homes
Rent Loss £		 1.21%
~~pt]~~		 1.00%
~~pt]tT~~		 1.21%
~~tTPe~~		 ~~Pe~~ 1.4%
~~Pe~~		 Void rent loss remained above
target at year end.
We will continue to minimise relet
times and investigate the reasons
which will reduce void rent loss.
~~Pe~~
Development
starts on site		 Development
starts on site
109
~~pt]~~		 196
~~pt] tT~~		 163
~~tT~~		 175
 There were a number of unnamed
schemes in the budget for 2024/25
that did not progress to a Start On
Site within the financial year.
We have a strong pipeline lined up,
with a focus on opportunities in
Wirral, which will see the number of
Starts on Site increase over the
next few years.
Development
completions		 Development
completions
187		 82 68 106 Due to delays in handovers at
Three Sails Point we fell behind this
year’s target. We currently have
217 homes on-site with handovers
expected from Three Sails Point,
Brook Street, Halton Canal and
Pasture Road.
We are confident in achieving the
target for handovers in 2025/26
Ongoing staff
sickness
levels at
below peer
group
average		 Ongoing staff
7.6 days		 3.5% 3.1%
~~ee~~		 ~~ee~~ 3.5% Our target absence rate for 2024-
25 was 3.5%, we consistently
stayed
under
target
with
an
average rate of 3.1%.
We had a number of long term ill
health challenges which have since
been resolved.
Our absence target for 2025-26 will
remain at 3.5%. As we continue to
manage absence in accordance
with our absence policy we are
hopeful to see a reduction from last
years average and stay under
target again this year.
Number of
existing		 105
~~ee~~		 250
~~ee~~		 84
~~ee~~
~~ee~~		 ~~ee~~
~~ee~~		 425
~~ee~~		 In the 2024/25 financial year, we
had an increase of 148 (EPCs) from
~~ee~~

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Magenta Living Report and financial statements for the year ended 31 March 2025 Strategic Report

housing units
increased to
EPC level C
or above		 housing units D’s or below to C+; these uplifts
came from planned retrofit works
completed
through
funded
schemes, such as the SHDF, self-
funded improvements including loft
insulation
top-ups
and
reassessment of expired/expiring
EPCs. This is below what was
targeted, as we are awaiting the
completion
of
post-EPCs
for
several Wave 2.1 properties. Due
to the delay in undertaking these
surveys, we were unable to include
them in the year-end figures. We
have
had
an
additional
469
properties recategorised from D or
below to C+ (following gaining
access to the Government EPC
register); these EPC upgrades
have not been included in the
reported figure.
Customer
satisfaction
with services
provided by
Magenta
Living (TSM
survey)		 with services
76.7%
 80% 81.7% 83% It
was
pleasing
to
see
an
improvement
in
customer
satisfaction, which sees us achieve
the customer satisfaction target
articulated in our Strategic Plan.
The results of the survey and the in
depth customer segmentation data
will allow us to redesign our
services and should result in an
increase in satisfaction in 2025/26.
Customer
satisfaction
with the
home (TSM
survey)		 70.9%
(well
maintained)
73.6% (safe)		 75%
(well
maintained)
80% (safe)		 75.6%
(well
maintained)
79.3% (safe)		 ®
®		 77%
81%		 Satisfaction improvement targets
have been designed to deliver
incremental improvement leading
into the road to 2030.
Customer
satisfaction
with positive
contribution
to the
Neighbourho
od (TSM
survey)		 55.3% 70% 67.5% 75% Satisfaction improvement targets
have
been
set
to
deliver
incremental improvement in order
to achieve our overall satisfaction
target with the services Magenta
Living Provides of 90% by 2030.

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Magenta Living Report and financial statements for the year ended 31 March 2025 Strategic Report

Strategic Risk

Magenta is positive about how the organisation is moving forward and it has a solid business plan but recognises the risks inherent within the sector and the wider economic and geo-political environment. The organisational focus remains firmly centred on its customers and ensuring that it can support them through these challenging times.

The Board is ultimately responsible for risk management and internal control arrangements at Magenta Living, ensuring appropriate arrangements are in place and monitoring the effectiveness of these.

The Board approved the current Risk Appetite and Risk Management and Assurance Framework in September 2024. The Risk Appetite determines the level of risk that the organisation is willing to tolerate 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 to manage, monitor, report and gain assurance on the effectiveness of its risk management and assurance activities.

Through its scheme of delegations, the Board has delegated authority to the Audit and Risk Committee to oversee the effectiveness of risk management and internal control. The Committee scrutinise 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 testing activities.

The Board receives quarterly reports from the Committee, together with the minutes of the meetings, to provide assurance on the effectiveness of risk management and internal control arrangements.

Risks and opportunities are continually monitored and evaluated; this regular oversight enables management, and the Board to make informed strategic decisions and ensures Magenta Living adapts to changing circumstances.

The table below provides a summary of the status of Magenta Living’s High and Medium strategic risks at 31 March 2025.

Risk Area
& Rating		 Nature of Risk Key Controls
Cybersecurity
and IT
Resilience
High (20)		 Failure to implement adequate
security controls and resilient IT
systems and infrastructure
increases chance that any
vulnerabilities will be exploited,
resulting in a successful
cybersecurity attack		 Continuous data loss prevention technology to detect & alert unusual
levels of data extraction, encryption or deletion.
Role based access permissions to ensure accountability for changes
made to core data sets or data structure.
Frequent snapshots, backups & test system replications to provide
resilience & availability in the event of significant loss.
Four levels of backups for Server infrastructure based on each
server's importance to the business (Gold (every 6h), Silver (every
12h), Bronze (every day), Tin (every week))
Cyber security report to Audit & Risk Committee for review,
monitoring & oversight.
Anti-virus & threat management software in place with identified
threats reviewed by IT Operations through to closure.
Annual Mandatory Cyber Security Training for all staff.
Information Security Management policy (last reviewed Jan 2025) &
associated procedures/policies in place (e.g. Acceptable Use,
Access Control & Password policies etc.)
Cyber LiabilityInsurance in place.

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Magenta Living Report and financial statements for the year ended 31 March 2025 Strategic Report

IT Change Advisory Board (IT CAB) in place to ensure all IT (Non-
Standard
/
Emergency)
changes
are
approved
before
implementation.
Data
Governance
& Integrity
Medium (16)		 Lack of effective data
governance negatively impacts
the quality, confidentiality,
integrity and availability (CIA) of
business critical data, leading to
poor decision making, non-
compliance with regulatory and
legal requirements and
increased risk of cybersecurity
breaches.		 Data Strategy, approved in 2024, details how we will move to a data
focused organisational culture through technology, governance &
people.
Information Management Operational & Steering groups are in place
to improve the quality, accessibility, protection & understanding of
data.
Validation of Landlord Compliance data is completed through monthly
audits to test data accuracy, & the results are shared with the
Compliance Team.
Assets & Liabilities Register (ALR) refreshed & reconciled quarterly,
providing a view of finance system incoming & outgoings & balance
sheet asset data.
Asset Change Advisory Board (CAB) that controls the addition,
removal & amendment of asset data on our main databases.
Business-wide Incident Management process in place to report,
assess & remediate any incidents & near misses identified. Data
Protection Officer (DPO) in place providing advice, support &
oversight to the business.
Data Protection processes are in place to support the business &
work of the DPO (e.g. Subject Access Requests (SARs), Data
Protection Impact Assessments(DPIA's)etc).
Development
Programme
Medium (15)		 Development & regeneration
ambitions are reduced or
stopped, negatively impacting
our commitment to invest in
current & future homes, the
overall growth strategy & our
reputation in the community.		 Development assumptions
reviewed
&
agreed annually in
conjunction with Finance. Assumptions & evidence validated by 3rd
party prior to approval at Asset & Development Committee (ADC) &
final approval by Board.
ADC provided with Performance & Development update reports
every six to eight weeks.
Board provided with a development report for oversight of
development programme & schemes.
Approved Climate Change Strategic Plan outlining key issues,
development of future builds & the use of current sites (No gas in new
homes 2025 / net zero carbon homes by 2050).
Contractor due diligence increased with a checklist including
additional financial scrutiny completed.
Contractor Monitoring & Support provided.
Development Strategy approved in 2022 (due for review 2026).
Value for
Money (VfM)
Medium (12)		 Failure to achieve VfM or comply
with VfM standards negatively
impacts our financial health and
limits our ability to invest in our
stock & services, leading to
regulatory penalties and/or
intervention and reputational
damage.		 VfM Strategy & performance targets for improving VfM are approved
by the Board.
VfM programme is ongoing in its reviews (Monthly) by business areas
against unit cost.
Quarterly financial monitoring reports to the Board include
performance data against RSH VfM metrics.
Financial monitoring is completed when the reports are reviewed
within the monthly Strategic Partners Meeting. This ensures control
over spend in line with budgets.
Development & Proactive Asset Management Strategies detail plans
for delivering homes to meet a variety of needs.
Annual VfM self-assessment against the RSH VfM Standard is
completed & approved by Leadership Team.
VFM savings tracker in place to record savings, reconciled with
Finance monthlywith validated savings built into the forecast.

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Magenta Living Report and financial statements for the year ended 31 March 2025 Strategic Report

Treasury
Management
& Financial
Capacity
Medium (12)		 Financial resources are either
inadequate or not managed
appropriately leading to resource
surpluses or shortages which
could impact on our overall
growth strategy, development
plans, investment in existing
stock & the provision of services
to our customers & the
community.		 Annual budget set & approved by Leadership Team & Board.
Business Plan approved annually by Board encompassing key
metrics & data including detailed stress testing & mitigation.
Monthly financial report containing financial KPI's (including
Treasury) & budget reports reviewed by Leadership Team.
Quarterly financial monitoring reports are provided to the Board.
Quarterly Financial & Risk Survey is submitted to the Regulator of
Social Housing; this ensures we are monitoring against our medium-
term financial capacity (i.e. 3-year forecast).
Weekly Cashflow & monthly Treasury monitoring reports are
monitored to confirm draw down availability against the Loan
Agreement. Reported monthly to Leadership Team & quarterly to
Board.
Single & multivariate stress testing is completed (minimum) annually
to demonstrate business stress scenarios including external
influences e.g., inflation spikes, sector risk impacts. The report forms
part of the Business Plan report approved by Leadership Team &
Board at least annually.
Development scheme evaluation criteria aligned annually to the
Board approved Business plan.
Assets & Liabilities Register (ALR) maintained & reconciled on a
quarterly basis; including the Balance Sheet monthly reconciliation &
narrative.
Property
Compliance
Medium (12)		 Detrimental impact to tenant,
visitor & staff health & safety &
damage to property assets if we
fail to fully comply with property
compliance regulations and
standards. This could lead to
financial penalties, reputational
damage, regulatory intervention,
and in severe cases,
prosecution.		 Property Compliance Key Performance Indicator report presented to
Leadership Team monthly, Audit & Risk Committee quarterly & Board
bi-annually.
Stock numbers & associated compliance requirements are validated
& reported to Leadership Team monthly, Audit & Risk Committee
quarterly & Board bi-annually.
Onsite independent quality checks are completed monthly by 3rd
parties against 10% of repairs etc, actions & review completed by
Head of Service.
Audits completed annually by Contract Manager to validate 3rdParty
contractors hold the relevant & up to date certification for their
contracted role - all certification is submitted to ML.
High Rise/High Risk Fire Assessments are completed against
Regulatory Standards. Identified areas for action (to minimise impact)
are recorded on Risk Hub, prioritised on a risk basis & monitored by
the Contract Manager to completion.
Budget/Project review meeting completed monthly by Contract &
Project Managers, Finance & other key stakeholders.
Monthly budget reviews completed & submitted to Finance Dept. to
provide any additional context as to over / under spends.
Compliance & Building Safety Strategy in place setting out our
approach to effective management & control ofpropertycompliance.
Customer
Excellence		 Ineffective customer
engagement and poor delivery of
services could mean we fail to
meet customer expectations or
fail to meet current and future
regulations and consumer
standards, which could lead to
not delivering the customer
strategy with poor customer		 Magenta Customer and Communities Committee (MCCC) oversees
and has clear accountabilities for customer delivery and engagement
components of the corporate plan.
Complaints feedback reports, including lessons learned and
improvements, informs Leadership Team monthly, Board & MCCC
quarterly to ensure compliance with the Ombudsman complaints
code.
Customer Annual Report is produced using customer feedback
obtained through Magenta Connect and is published on Magenta
Website.

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Magenta Living Report and financial statements for the year ended 31 March 2025 Strategic Report

outcomes, regulatory issues, and
reputational damage.		 Annual self-assessment completed against Housing Ombudsman
Complaints Code, provided to Board and published on the Magenta
Website.
Annual self-assessment against Consumer Standards completed,
reviewed by MCCC and approved by Leadership Team.
Social Housing Regulation Bill review meeting held Monthly to
discuss Action Plan and progress in the Regulatory/Legal Working
Group.
Annual assessment of social value by sub-group of MCCC.
Customer Strategy reviewed annually by MCCC.
Monthly Lessons Learnt Forum held to review - Complaint trends and
actions to be implemented.
People
Medium (12)		 Inability to identify, recruit, retain
and leverage appropriate
knowledge, skills and capabilities
to deliver Magenta's corporate
objectives and ensure
compliance with employment law
& practices.		 Recruitment agency framework in place for Property Services,
including preferred supplier list (identified through regular service
reviews completed against each agency).
Roles identified by the business as critical roles, have longer
contractual notice period.
Annual succession plan review completed.
Annual recruitment of approximately 5 trade apprentices via the local
college.
Mandatory training in place, completion of training is monitored &
reported to the leadership team.
Absence procedure including Occupational Health referral.
Mental Health First Aiders within the business.
The ‘Way we work’ policy in place, that improves flexibility &
availability of resource
Engagement survey is completed via the Happiness Index. This
provides gap analysis where actions & outcomes are monitored.
Performance Management process in place, to discuss performance,
wellbeing & development needs within teams.
Exit interviews are conducted to understand reasons for leaving.
2030 Change
Programme
Medium (12)		 Failure to achieve the change
programme outcomes, to the
required level of quality and
within agreed timescales and/or
financial parameters, due to poor
design, lack of appropriate
progress, activity and
performance monitoring,
ineffective implementation,
change management or
business buy in.		 Monthly portfolio board meetings monitor project progress, activity &
performance against plan & route of escalation for the Programme
Boards. Portfolio Board will make decisions on priorities for new
projects.
Transformation Group meeting held three times a year to provide
Board level oversight & scrutiny of transformational plan, objectives
& risks.
Monthly programme meetings for the three pillars (Customer, Culture
& Community) meetings to provide scrutiny & guidance to allocated
projects.
Dedicated Project Management Office (PMO) in place which consists
of qualified project professionals.
Project Portfolio Management (PPM)Tool in place & provides a
framework for all project activity, management & reporting (including
milestones, change management, quality concerns, risks & issues
etc.)
Success criteria clearly stated as part of the project initiation
document (PID) & full requirements are gathered by Business
Analysts throughout each project. Project documentation includes
justification for projects to ensure alignment to the 2030 Roadmap
including strategic goals & transformational objectives.
Internal resources to deliver Salesforce Projects with support from
Strategic Delivery Partners (Alscient, Salesforce, Civica, Manifest,
NEC, Verse One)who work to agreed SLAs.

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Magenta Living Report and financial statements for the year ended 31 March 2025 Strategic Report

Regular operational meetings with Strategic Delivery Partners to discuss progress towards shared objectives & contracted work. Business areas accepting change sign-off on pre-agreed quality criteria & go-live does not occur until these have been met to the satisfaction of the accepting business area. Handover documentation is prepared including any additional tasks that need to be completed by the accepting business areas.

In addition to the high and medium risk noted in the above table, the below risks have been managed to a low rating through appropriate controls overseen by the Audit and Risk Committee:

Internal Audit (Forvis Mazars)

Internal Audit plays a crucial role in offering the Audit and Risk Committee and the Board confidence regarding the adequacy and effectiveness of risk management, control, and governance processes. Magenta collaborates with its internal auditors to develop an annual programme of internal audits, prioritised according to strategic risks, emerging sector risks, and new activities.

The Audit and Risk Committee approves this annual risk-based programme and reviews all resulting reports, ensuring 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 2024/25 audit programme and the internal opinion provided by Forvis Mazars in their 2024/25 annual report.

Internal Audit outcomes

FORVIS MAZARS ANNUAL STATEMENT OF ASSURANCE PROVIDED WITHIN THE INTERNAL AUDIT ANNUAL REPORT 2024/25

On the basis of our audit work, our opinion on the framework of governance, risk management, and control is Moderate in its overall adequacy and effectiveness.

This assessment reflects the findings from the work completed to date and the three reports in draft at the time of reporting (Transformation Programme, Tenant Satisfaction Measures (TSM) Validation and Follow Up). Most of the opinions given in the year were ‘Moderate’. The Development audit received a ‘Substantial’ assurance opinion.

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Magenta Living Report and financial statements for the year ended 31 March 2025 Strategic Report

These matters and all other reports have been discussed with management, to whom we have made several recommendations. All of these have been, or are in the process of being addressed, as detailed in our individual reports.

In giving our internal audit opinion, it should be noted that assurance can never be absolute. The most that the internal audit service can provide to Magenta is a reasonable assurance that there are no major weaknesses in risk management and internal control processes.

The matters raised in this report are only those which came to our attention during our Internal Audit work and are not necessarily a comprehensive statement of all the weaknesses that exist, or of all the improvements that may be required.

In arriving at our opinion, we have taken the following matters into account:

Internal audit has not placed any reliance on third parties in order to assess the controls operated by Magenta. Our opinion solely relies on the work we have performed and the results of the controls testing we have undertaken.

We follow up on all IA recommendations to ensure Management have addressed and implemented appropriate actions to address those recommendations.

Statement of compliance

The form and content of the strategic report review has been prepared in line with the Statement of Recommended Practice for registered Social Housing Providers 2018. The statement has also been prepared in accordance with The Accounting Direction for Private Registered Providers of Social Housing 2022.

Ged Lucas Chair

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Magenta Living Report and financial statements for the year ended 31 March 2025 Report of the Board of Directors

Governance

Governance Structure

Magenta Living (“Company”) is the parent entity, registered under the Companies Act 2006 (No. 04912562) and with the Regulator of Social Housing (No. L4435) as a social housing provider and the Charity Commission (No. 1106969). It is responsible for the strategic planning and direction of the Group. It owns or controls the entities below and includes them in the consolidated financial statements.

Wirral Partnership Homes (Developments) Limited undertakes construction for the parent company.

Bamboo Estates LLP whose principal activity is the letting of housing properties at market rent in the northwest of England.

Hilbre Projects LLP undertook the development of residential and commercial property, including social housing (section 106 properties) and housing to be sold on the open market. It ceased trading on 31 March 2022.

Wirral Partnership Homes (Building Services) Limited provided responsive repairs, void repairs, adaptations and improvement programme works to Magenta Living until 1 April 2008 when these services were transferred to Magenta Living. Since then, Wirral Partnership Homes (Building Services) Limited has been dormant.

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Magenta Living Report and financial statements for the year ended 31 March 2025 Report of the Board of Directors

Audit & Risk Committee ‘ARC’

The ARC, composed of NEDs, and a Co-optee, advises the Magenta Living Board on the robustness of risk management, internal control, and assurance frameworks. It offers independent scrutiny and ensures transparent procedures for selecting, appointing, overseeing, and reviewing auditors, emphasizing value for money, performance measurement, process optimization, and strategic review.

People, Culture & Change Committee ‘PCCC’

The PCCC, composed only of NEDs, oversees and advises on governance effectiveness in relation to organisational change and innovation from a strategic, operational and colleague impact perspective. In addition, PCCC considers NED succession planning, Board Directors' and Chief Executive appraisals, contractual matters for the Chief Executive, and remuneration for NEDs, the Chief Executive, and staff. It ensures Magenta Living attracts and retains talent while fostering an organisational culture and practices which keep our colleagues and customers safe.

Assets & Development Committee ‘ADC’

The ADC consists of NED members. The ADC is responsible for assisting the Magenta Living Board in fulfilling its strategic assets and development responsibilities and is tasked with exercising its delegated authority in relation to the consideration, approval and monitoring of development and commercial activities.

Magenta Customer & Communities Committee ‘MCCC’

The MCCC was created to maintain formal links between customers and the Board, giving customers a say in the organisation’s decisions. It consists of at least two board members and nine community members, seven of whom are tenants. MCCC reviews strategies and policies affecting customers and manages a Community Fund for local initiatives. With customers in the majority, including a customer Chairperson, the Committee influences services, oversees social value activities, and represents on NHF’s Tenant Panel and the Housing Ombudsman’s Resident Panel.

Magenta Living Board

The current Board members and Executive Directors, along with those who served up to the approval date of these financial statements, are listed on page 1. The Board comprises individuals with diverse expertise in professional, commercial, and local areas. Appointments are skills-based, regularly assessed via a board skills matrix. Typically, members serve two three-year terms, with possible oneyear extensions up to a total of nine years. The Board can have up to 12 Non-Executive Directors, meets at least four times annually, and is responsible for the Group’s long-term strategic direction and seeks assurance in relation to operational effectiveness as well as legal, regulatory and statutory compliance.

The Group holds insurance policies that provide indemnity coverage for its Board Directors and Executive Directors against liabilities that may arise while performing their duties for the Group.

A summary of the diversity of the Board during 2024/25 is detailed below:

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Magenta Living Report and financial statements for the year ended 31 March 2025 Report of the Board of Directors

Board and Committee Membership 2024/25

Board and Committee Membership 2024/25 Board and Committee Membership 2024/25
Magenta Living Board
Ged Lucas (Chair)
Myles Edwards (SID)
Stephen Allcock
Rachel Barber
Robbie Chapman
Ann-Louise Gilmore
Liam Kelly
Helen O’Doherty
Paul Richards
Michael Riley
Audit & Risk
Rachel Barber (Chair)
Stephen Allcock
Robbie Chapman
Mike Riley
Julie Booker (Co-optee)		 People, Culture & Change
Liam Kelly (Chair)
Steve Allcock
Myles Edwards
Ged Lucas
Helen O’Doherty
Assets & Development
Ann-Louise Gilmore (Chair)
Ged Lucas
Helen O’Doherty
Paul Richards
Michael Riley		 Magenta Customer & Communities
Wendy Gooley (Tenant Chair) Resigned May
2025
Rachel Barber
Myles Edwards
Liam Kelly

Board and Committee NED Attendance

Board / Committee % Attendance
Magenta Living Board 87
Audit & Risk Committee 80
People, Culture & Change Committee 94
Assets & Development Committee 96
Magenta Customer & Communities Committee 74

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Magenta Living Report and financial statements for the year ended 31 March 2025 Report of the Board of Directors

Our Executive

The Executive includes the Chief Executive and other members of the Group’s Executive Leadership Team, all of whom are detailed on page 1. They operate within the authority delegated by the Board. The Chief Executive and other Chief Officers have permanent contracts with notice periods up to six months. Currently the Chief Executive is interim whilst the recruitment process is ongoing.

Each of the Executive Leadership Team are members of the Social Housing Pension Scheme (defined contribution). They receive the same terms as other staff, with the Group contributing on their behalf. Remuneration details are in note 10 of the audited financial statements.

Internal controls assurance

The Board acknowledges its overall responsibility for establishing and maintaining the whole system of internal control and for reviewing its effectiveness. The system of internal control is designed to manage, rather than eliminate, the risk of failure to achieve business objectives, and to provide reasonable, and not absolute, assurance against material misstatement or loss.

The process for identifying, evaluating and managing the significant risks faced by the Group is ongoing and has been in place throughout the period commencing 1 April 2024 to the date of approval of the annual report and financial statements.

Key elements of the control framework include:

The Board cannot delegate ultimate responsibility for the system of internal control, but it can, and has, delegated authority to the Audit and Risk Committee to regularly review the effectiveness of the system of internal control. The Board receives quarterly reports from the Audit and Risk Committee together with minutes of committee meetings and an ARC Chair’s summary of assurance.

The Audit and Risk Committee 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 its findings to the Board.

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Magenta Living Report and financial statements for the year ended 31 March 2025 Report of the Board of Directors

Going concern

The Group's business operations, current financial standing, and factors likely to influence its future progression are detailed in the Report of the Directors. The Group maintains long-term debt facilities, including £41m of unused resources as of 31 March 2025 (2024: £46m), which secure sufficient funds for committed reinvestment and development programmes alongside daily operations.

While rental income has remained consistent, the Group has faced increased short- and mediumterm expenditure due to inflationary pressures and a rise in demand for planned and routine repairs. Ongoing challenges in the construction sector have further reduced planned spending during the year. However, efforts are ongoing to review and address these challenges, allowing the timing adjustments in investment for both existing housing assets and new developments to effectively manage cashflow impacts.

The long-term business plan accommodates the organisation’s developmental goals to meet regional social housing demand. Moreover, the plan demonstrates the Group’s capability to service its debt facilities while adhering to lender covenants. As of 31 March 2025, the Group held £8.2m in available cash balances and an additional £41m in secured but undrawn loan facilities accessible at short notice. The Consolidated Statement of Comprehensive Income reveals a surplus of £6.2m for the year before accounting for actuarial gains pertaining to pension schemes. The underlying EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) remains robust, with discretionary spending being closely managed.

Consequently, the Board 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 date of the report and financial statements. Therefore, the going concern basis continues to be applied in the financial statements.

Public Benefit

As a public benefit entity, Magenta Living has applied the public benefit entity ‘PBE’ prefixed paragraphs of FRS 102.

Donations

During the year ended 31 March 2025 the Group has made no political contributions and any charitable donations were made during the course of its ordinary activities (2025: £nil).

Post balance sheet events

Magenta considers that there have been no unforeseen events since the year end that have had a significant effect on the Group’s financial position.

Statement by the Directors in performance of their statutory duties in accordance with Section 172(1) of the Companies Act 2006

The Board promotes the success of the Group in the interests of its stakeholders. Its strategies and activities are aimed at ensuring the long-term success of the business. It believes this will be achieved by delivering Magenta’s corporate plan and strategic objectives which requires it to engage with and deliver services to its stakeholders which include:

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Magenta Living Report and financial statements for the year ended 31 March 2025 Report of the Board of Directors

By identifying, engaging with, and understanding Magenta’s stakeholders, it can factor into boardroom discussions the potential impact of its decisions on each stakeholder group and consider their needs and concerns when setting the strategy for the long-term success of Magenta.

The Board continually reviews how it can meet its obligations under s.172 of the Companies Act 2006. Magenta has acted in accordance with the Act in its approach to addressing key decisions, some of those decisions and the considerations of Magenta’s stakeholders are further described below:

The likely consequences of any
decision in the longterm		 •
Approved the 2024-2030 Corporate Plan
The interests of the company's
employees		 •
Approved the Annual Pay award
•
Reviewed Magenta’s People Strategy
•
Reviewed and approved Magenta’s Modern Slavery
Statement
•
Reviewed and approved Magenta’s Gender Pay
Gap Report
•
Reviewed and scrutinised Magenta’s organisational
changeprogramme
The need to foster the company's
business relationships with suppliers,
customers and others		 •
Consideration of the impact of applying the rent & service
charge increases and affordability for our customers
alongside the cost of living crisis and the need to invest in
our current and future homes
The impact of the company's
operations on the community and the
environment		 •
New Customer Relationship Management system procured
•
Neighbourhood Plans developed
•
Cost of Living Strategy implemented including community
roadshows
•
Progression of the Climate Change Strategic Framework
•
Climate strategy initiatives including installation of carbon-
efficiency monitoring equipment, loft insulation and LED
lighting in homes, electric vehicle charging points installed
at Magenta offices and electric vehicles forming
apercentage of Magenta’s fleet contract
The desirability of the company
maintaining a reputation for high
standards of business conduct.		 •
See ‘Continuous Improvement and Governance
•
Customer satisfaction survey widened to increase potential
respondents
•
Compilation of Tenant Satisfaction Measures
•
Completion of an Asset Performance Evaluation
The need to act fairly as between
members of the company.		 •
Reviewed the Group Co-operation Framework

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Magenta Living Report and financial statements for the year ended 31 March 2025 Report of the Board of Directors

Compliance with the National Housing Federation Code of Governance

Magenta Living has adopted the National Housing Federation’s 2020 Code of Governance (the Code). The Board considers compliance against each of the provisions of the Code on an annual basis. Following this review on 21 March the Board, through its delegation to Magenta Living’s People, Culture and Change Committee, was assured that Magenta Living is fully compliant with the Code.

Continuous Improvement and Governance

The Board continually enhances its governance effectiveness. In 2024/25:

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 Responsibilities of the Board for the report and financial statements

The Board must prepare the report and financial statements according to applicable laws and regulations. Company law requires financial statements for each year, following United Kingdom Generally Accepted Accounting Practice (UK Accounting Standards and laws including FRS 102). The Board must ensure these statements provide a true and fair view of the Group and Company's state of affairs and profit and loss.

In preparing the statements, the Board must:

The Board also maintains the integrity of the Group's websites. UK legislation on financial statements preparation and dissemination may differ from other jurisdictions.

Disclosure of information to auditors

So far as each of the directors of the Company is aware, at the time this report is approved:

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Magenta Living Report and financial statements for the year ended 31 March 2025 Report of the Board of Directors

External auditor

A resolution to re-appoint Beever and Struthers as auditors in accordance with section 487(2) of the Companies Act 2006 was approved by the Audit and Risk Committee on 7 September 2023.

Approval

The Report of the Board was approved by the Board on 17 September 2025 and signed on its behalf by:

Ged Lucas Chair

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Magenta Living Report and financial statements for the year ended 31 March 2025 Independent Auditor’s Report to the Members of Magenta Living

Opinion

We have audited the financial statements of Magenta Living (the ‘parent Company’) and its subsidiaries (the ‘Group’) for the year ended 31 March 2025 which comprise the Consolidated Statement of Comprehensive Income, the Company Statement of Comprehensive Income, the Consolidated and Company Statements of Changes in Reserves, the Consolidated and Company Statements of Financial Position, the Consolidated Statement of Cash Flows and the notes to the financial statements, 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 statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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Magenta Living Report and financial statements for the year ended 31 March 2025 Independent Auditor’s Report to the Members of Magenta Living

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the Report of the Board of Directors.

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

In addition, we have nothing to report in respect of the following matter where the Housing and Regeneration Act 2008 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the Statement of Responsibilities of the Board for the report and financial statements set out on page 34, the Board is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Board determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board is responsible for assessing the Group’s and the parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board either intends to liquidate the Group or the parent Company or to cease operations, or has no realistic alternative but to do so.

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Magenta Living Report and financial statements for the year ended 31 March 2025 Independent Auditor’s Report to the Members of Magenta Living

Auditor’s responsibilities for the audit of the financial statements

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

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

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

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Magenta Living Report and financial statements for the year ended 31 March 2025 Independent Auditor’s Report to the Members of Magenta Living

Due to 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 audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, 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 detect all fraud and non-compliance with laws and regulations.

Use of our report

This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Mark Bradley BA BFP FCA (Senior Statutory Auditor)

For and on behalf of Beever and Struthers Statutory Auditor Suite 9b The Beehive Lions Drive Shadsworth Business Park Blackburn BB1 2QS Date: 29[th] September 2025

Page | 39

Magenta Living Report and financial statements for the year ended 31 March 2025 Consolidated Statement of Comprehensive Income

Note 2025 Restated
2024
£’000 £’000
Turnover 3 82,657 77,224
Cost of sales 3 (1,501) (2,204)
Operating expenditure 3 (74,503) (72,285)
Gain on disposal of housing properties 3,6 1,463 1,558
8,116 4,293
Gain on revaluation of investment properties 15 993 874
Operating surplus 5 9,109 5,167
Interest receivable and other finance income 7 439 455
Interest payable and financing costs 8 (3,322) (3,208)
Surplus/(deficit) on ordinary activities before taxation 6,226 2,414
Tax on surplus on ordinary activities 11 - (49)
Surplus/(deficit) for the year 6,226 2,365
Actuarial (loss)/gain in respect of MPF pension scheme 27 (3,700) 188
Actuarial gain/(loss) in respect of SHPS pension scheme 27 73 (138)
Total comprehensive income for the year 2,599 2,415

*Comparative amounts have been restated. See Note 35 – Prior year adjustment.

The consolidated results relate wholly to continuing activities. The accompanying notes on pages 45 to 90 form part of these financial statements.

The financial statements on pages 40 to 90 were approved by the Board and authorised for issue on 17 September 2025 and signed on its behalf by:

Ged Lucas Chair

Rachel Barber Chair of Audit and Risk

Page | 40

Magenta Living Report and financial statements for the year ended 31 March 2025 Company Statement of Comprehensive Income

Note Restated
2025 2024
£’000 £’000
Turnover 3 82,097 76,661
Cost of sales 3 (1,501) (2,204)
Operating expenditure 3 (74,059) (71,795)
Gain on disposal of housing properties 3,6 1,463 1,558
8,000 4,220
Gain on revaluation of investment properties 15 993 874
Operating surplus 5 8,993 5,094
Interest receivable and other finance income 7 904 873
Interest payable and financing costs 8 (3,322) (3,208)
Surplus on ordinary activities before taxation 6,575 2,759
Tax on surplus on ordinary activities 11 - -
Surplus for the year 6,575 2,759
Actuarial (loss)/gain in respect of MPF pension
scheme		 27 (3,700) 188
Actuarial gain/(loss) in respect of SHPS pension
scheme		 27 73 (138)
Total comprehensive income for the year 2,948 2,809

*Comparative amounts have been restated. See Note 35 – Prior year adjustment.

The company’s results relate wholly to continuing activities. The accompanying notes on pages 45 to 90 form part of these financial statements.

The financial statements on pages 40 to 90 were approved by the Board and authorised for issue on 17 September 2025 and signed on its behalf by:

Ged Lucas Chair

Rachel Barber Chair of Audit and Risk

Page | 41

Magenta Living Report and financial statements for the year ended 31 March 2025 Consolidated and Company Statements of Changes in Reserves

Consolidated Company
Income & Income &
Expenditure Expenditure
Reserve Reserve
£’000 £’000
Restated balance as at 31 March 2023 149,931 152,649
Restated surplus for the year 2,365 2,759
Actuarial gain in respect of MPF pension scheme 188 188
Actuarial (loss) in respect of SHPS pension scheme (138) (138)
Restated closing reserves as at 31 March 2024 152,346 155,458
Surplus for the year 6,226 6,575
Actuarial (loss) in respect of MPF pension scheme (3,700) (3,700)
Actuarial gain in respect of SHPS pension scheme 73 73
Closing reserves as at 31 March 2025 154,945 158,406

*Comparative amounts have been restated. See Note 35 – Prior year adjustment.

The accompanying notes on pages 45 to 90 form part of these financial statements.

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Magenta Living Report and financial statements for the year ended 31 March 2025 Consolidated and Company Statement of Financial Position Company Number: 04912562

At 31 March Group Group Group Company Company
2025 2024 2025 2024
Restated Restated
Note £’000 £’000 £’000 £’000
Fixed assets
Tangible fixed assets – housing properties 12 265,317 252,044 270,657 256,806
Other tangible fixed assets 13 3,642 3,533 3,642 3,533
Intangible fixed assets 14 965 625 965 625
Investment properties 15 20,756 16,225 20,756 16,225
Investment - subsidiary 16 - - 220 220
290,680 272,427 296,240 277,409
Current assets
Properties held for sale 18 4,091 3,216 4,091 3,216
Stock 157 239 157 239
Debtors: amounts due within one year 19 9,702 6,043 11,183 6,374
Debtors: amounts due after more than one year 19 182 236 182 236
Cash and cash equivalents 20 8,198 7,981 5,726 5,212
22,330 17,715 21,339 15,277
Creditors: Amounts falling due within one year 21 (23,527) (16,926) (24,716) (16,438)
Net current assets/(liabilities) (1,197) 789 (3,377) (1,161)
Total assets less current liabilities 289,483 273,216 292,863 276,248
Creditors: Amounts falling due after more than
one year		 22 (137,086) (127,480) (137,006) (127,400)
Provisions for liabilities
Pension provision MPF 27 2,876 6,952 2,876 6,952
Pension provision SHPS 27 (189) (342) (189) (342)
Other provisions 28 (139) - (139) -
Total net assets 154,945 152,346 158,405 155,458
Reserves
Income and expenditure reserve 154,945 152,346 158,405 155,458
154,945 152,346 158,405 155,458

*Comparative amounts have been restated. See Note 35 – Prior year adjustment.

The accompanying notes on pages 45 to 90 form part of these financial statements.

The financial statements on pages 40 to 90 were approved by the Board and authorised for issue on 17 September 2025 and signed on its behalf by:

Ged Lucas Chair

Rachel Barber Chair of Audit and Risk

Page | 43

Magenta Living Report and financial statements for the year ended 31 March 2025 Consolidated Statement of Cash Flows

Note 2025 2024
£’000 £’000
Net cash inflow from operating activities 32 20,490 14,409
Cash flow from investing activities
Purchase and construction of housing properties (26,943) (28,600)
Purchase of other tangible fixed assets (438) (157)
Purchase of intangible fixed assets (287) (706)
Proceeds from sale of housing properties 1,463 1,776
Social Housing Grant received 4,056 6,176
Interest received 78 46
(22,071) (21,465)
Cash flow from financing activities
Loan draw-down of borrowing 5,000 4,000
Interest paid (3,202) (3,090)
1,798 910
Net change in cash and cash equivalents 217 (6,146)
Cash and cash equivalents at beginning of the year 7,981 14,127
Cash and cash equivalents at end of the year 20 8,198 7,981

The accompanying notes on pages 45 to 90 form part of these financial statements.

Page | 44

Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

1. Legal status

The Company is a private company limited by guarantee with no share capital, registered under the Companies Act 2006 and is a registered housing provider. The registered office is Partnership Building, Hamilton Street Birkenhead CH41 5AA.

The Group comprises the following entities:

Companies Act 2006 and is a registered housing provider. The registered office is Partnership
Building, Hamilton Street Birkenhead CH41 5AA.
The Group comprises the following entities:		 Companies Act 2006 and is a registered housing provider. The registered office is Partnership Companies Act 2006 and is a registered housing provider. The registered office is Partnership
Registered/Non-
Name Incorporation registered
Magenta Living Companies Act 2006 Registered
Wirral Partnership Homes (Developments) Limited Companies Act 2006 Non-registered
Bamboo Estates LLP Companies Act 2006 Non-registered
Hilbre Projects LLP Companies Act 2006 Non-registered
Wirral Partnership Homes (Building Services)
Limited*		 Companies Act 2006 Non-registered

* dormant company

2. Accounting policies

Basis of accounting

The financial statements are prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP) including Financial Reporting Standard 102 (FRS 102) and the Housing SORP 2018: Statement of Recommended Practice 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 statements are presented in sterling (£) and rounded to the nearest £’000.

Going concern

The Group’s financial statements have been prepared on a going concern basis which assumes an ability to continue operating for the foreseeable future. No significant concerns have been noted in the business plan updated for future periods and therefore the Group considers it appropriate to continue to prepare the financial statements on a going concern basis.

Significant judgements and estimates

Preparation of the financial statements requires management to make significant judgements and estimates. These are shown below.

Stock and work in progress

The Group carries stock and work in progress of properties that it intends to sell. The stock is held at cost and this is regularly compared to the recoverable amount to ensure no impairment is required. The recoverable amounts are derived from local market data and sales experience.

Impairment of Group’s tangible assets

Management seek to identify indicators of impairment by considering the economic viability and expected future financial performance of the asset. Where it is a component of an asset, WIP or property, the viability of that unit, scheme or property is also considered. The basis for the recoverable amounts of the assets has been considered based on EUV-SH or depreciated replacement cost. The Group has to make an assessment as to whether an indicator of impairment exists. In making the judgement, management considered the detailed criteria set out in the SORP. The Group carries out

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Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

an impairment review, 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 level of void losses, projected discounted cash flows and the ongoing investment in property maintenance and improvement. Void levels have remained consistent with historic levels and are in-line with the business plan.

Capitalisation of property development costs

Capitalisation of costs follows our capitalisation policy. Distinguishing the point at which a project is more likely than not to continue, allowing capitalisation of the associated development costs requires judgement. After capitalisation management monitors the asset and considers whether changes indicate that impairment is required. Interest incurred on development and other large assets projects will be capitalised in line with Magenta’s capitalisation policy.

Defined benefit pension obligations

Management’s estimate of the defined benefit obligations is based on a number of critical underlying assumptions such as the standard rates of inflation, mortality, discount rate and anticipation of future salary increase. These assumptions are provided by external actuaries. Variation in these assumptions may significantly impact the obligation amount and the annual defined benefit expenses. The valuation of the pension fund assets is based on actual March 2025 data.

Significant Estimates

Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below. Actual results may be significantly different.

Useful lives of depreciable assets : Management reviews its estimate of the useful lives of depreciable assets at each reporting date based on the expected utility of the assets. Uncertainties in these estimates relate to technological obsolescence that may change the utility of certain software and IT equipment and changes to decent homes standards which may require more frequent replacement of key components.

Revaluation of investment properties: The Group carries its investment property at fair value, with changes in fair value being recognised in The Statement of Comprehensive Income. The Group engages independent valuation specialists to determine fair value at the reporting period date. The valuer uses a valuation technique based on a discounted cash flow model. The determined fair value of the investment property is most sensitive to the estimated yield as well as the long-term vacancy rate. The key assumptions used to determine the fair value of investment property are further explained in note 15.

Basis of consolidation

The consolidated financial statements include the parent, Magenta Living and its subsidiaries, Wirral Partnership Homes (Building Services) Limited, Wirral Partnership Homes (Developments) Limited (WPH Developments), Hilbre Projects LLP and Bamboo Estates LLP and are prepared using the purchase method of accounting.

Turnover and revenue recognition

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 receivable in the year.

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Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

Rental income is recognised from the point when properties under development reach a practical point of completion or otherwise become available for letting, net of any voids. Charges for support services funded under Supporting People are recognised as they fall due under the contractual arrangements with Administering Authorities.

Income from property sales is recognised on legal completion.

Taxation

The Company is a registered charity and as such is potentially exempt to corporation or capital gains tax on its charitable activities. Any taxable profits generated by the subsidiaries will be subject to corporation tax. Tax calculations are carried out by our external tax advisers.

Deferred taxation

Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated. Deferred tax assets are only recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed.

Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. Amounts recognised in respect of deferred tax are not discounted in accordance with FRS 102.

Value Added Tax

The Group is registered for VAT and charges value added tax (VAT) on some of its income and is able to recover only part of the VAT it incurs on expenditure. The financial statements include VAT to the extent that it 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 at the year-end is included as a current liability or asset.

Community Fund

As part of the stock transfer arrangement with Wirral Metropolitan Borough Council (“the Council”), the Community Fund (“the Fund”) was established. The purpose of the Fund is to provide the Company with funds to undertake projects that are mutually beneficial to the Company and the Council while furthering the Company’s principal business. A Working Group, made up of an equal number of representatives from the Company and the Council, exists to determine the use of the funds.

The Fund comprises of money from three principal sources:

  1. Balance of the Council’s Housing Revenue Account on its closure.

  2. VAT savings from arrangements put in place at transfer.

  3. Council and Company disposal claw back share on the sale of land not to be used for the purpose of social housing.

The monies received by the Fund shall be used for purposes that include several specifically referred to in an agreement between the Council and the Company. The remainder is to be utilised by joint agreement of the Working Group set between the Council and the Company.

Although access to 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), the Fund’s monies are beneficially and legally those of the Company and are therefore included in the Company’s reported cash balance.

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Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

Prior to application of the Fund’s monies a deferred income creditor is recognised that is released on utilisation of the related cash balance. It is envisaged that the fund will be utilised in the coming year and so is shown as due within one year and linked by disclosure to the cash balance. Where it is intended that funds will be allocated in the next 12 months, these are classified as due within one year.

Government Grants

Government grants include grants receivable from Homes England, local authorities and other government organisations. Government grants received for housing properties are recognised in income over the useful life of the housing property structure and, where applicable, its individual components (excluding land) under the accruals model. Grants relating to revenue are recognised in income and expenditure over the same period as the expenditure to which they relate once reasonable assurance has been gained that the entity will comply with the conditions and that the funds will be received.

Grants due from government organisations or received in advance are included as current assets or liabilities. Government grants received for housing properties are subordinated to the repayment of loans by agreement with Homes England. Government grants released on sale of property may be repayable but are normally available to be recycled and are credited to a Recycled Capital Grant Fund and included in the statement 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 creditors is released and recognised in income and expenditure.

Other grants

Grants received from non-government sources are recognised using the performance model. A grant which does not impose specified future performance conditions is recognised as revenue when the grant proceeds are received or receivable. A grant that imposes specified future performance-related conditions on the company is recognised only when these conditions are met. A grant received before the revenue recognition criteria are satisfied is recognised as a liability.

Interest payable

Interest payable is charged to the statement of comprehensive income in the year. Where interest has been capitalised as part of a capital project, that interest will be charged over the life of the asset.

Financial instruments

Financial instruments which meet 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 both Section 11 and Section 12 of FRS 102 in full and as such has classified all financial instruments as basic.

Pensions

The Group participates in two funded multi-employer defined benefit schemes, the Social Housing Pension Scheme (‘SHPS’) and the Merseyside Pension Fund (‘MPF’).

Scheme assets are measured at fair values. Scheme liabilities are measured on an actuarial basis using the projected unit credit method and are discounted at appropriate high quality corporate bond rates. The net surplus or deficit, adjusted for deferred tax, is presented separately from other net assets on the statement of financial position. A net surplus is recognised only to the extent that it is recoverable by the Group. The MPF pension is currently in a surplus position and is recognised as an asset in the statement of financial position.

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Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

The current service cost and costs from settlements and curtailments are charged against operating surplus. Past service costs are spread over the period until the benefit increases vest. Interest on the scheme liabilities and the expected return on scheme assets are included net in other finance costs. Re-measurements are reported in other comprehensive income.

Supporting people

Charges for support services funded under Supporting People are recognised as they fall due under the contractual arrangements with Administering Authorities.

Housing properties

Housing Properties are principally properties available for rent and are stated at 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 existing properties which replace a component that has been treated separately for depreciation purposes, along with those works that result in an increase in net rental income over the lives of the properties, thereby enhancing the economic benefits of the assets, are capitalised.

Shared ownership properties are split proportionally between current and fixed assets based on the element relating to 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 at cost, less any provisions needed for depreciation or impairment.

Freehold land is not depreciated.

Depreciation of housing properties

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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 85 years
Windows and external doors 30 years
Kitchens 20 years
Bathrooms 30 years
Boilers 15 years
Roofs 60 years
External wall insulation 20 years
CCTV systems 10 years
Car Park 30 years
For High Rise and Sheltered Blocks:
Heating Systems 30 years
Door Entry, Lift, Fire Alarm and Water Systems 20 years
Electrical systems 30 years

Assets are not depreciated while under construction or until they are brought into use.

The useful economic lives of certain assets have been amended in the year.

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Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

Sale of housing properties

Under the terms of the transfer agreement a proportion of the proceeds from the right to buy sales are shared with the Council. The balance of any funds due to the Council will be included as a current liability.

Impairment

Housing properties are assessed annually for impairment indicators. Where indicators are identified an assessment for impairment is undertaken comparing the scheme’s carrying amount to its recoverable amount. Where the carrying amount of a scheme is deemed to exceed its recoverable amount, the scheme is written down to its recoverable amount. The resulting impairment is recognised as operating expenditure. The Group carries out an impairment review, 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 level of void losses, projected discounted cash flows and the ongoing investment in property maintenance and improvement. Void levels have remained consistent 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 at cost on initial recognition and subsequently at fair value as at the year end, with changes in fair value recognised in the statement of comprehensive income. Investment properties are valued as at 31 March by professional qualified external valuers. The valuation of properties is undertaken in accordance with the Royal Institute of Chartered Surveyors Valuation Standards.

Other tangible fixed assets

==> picture [16 x 16] intentionally omitted <==

Other tangible fixed assets are measured at cost less accumulated depreciation and any impairment losses. Depreciation is charged on other tangible fixed assets on a straight-line basis over their expected useful lives.

expected useful lives.
Freehold offices 20-40 years
Car Parking 30 years
CCTV systems 10 years
Furniture, fixtures and fittings 4 years
Computers and office equipment 4 years
Other equipment 4 years
Vehicles 5 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 amortisation and impairment losses. Costs associated with maintaining computer software are recognised as an expense as incurred. Amortisation is charged on intangible assets on a straight-line basis over their expected useful lives.

Software

Over the life of the contract

Leased assets

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership of the leased asset to the group. All other leases are classified as

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Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

operating leases. Rentals payable under operating leases are charged to statement of comprehensive income on a straight-line basis over the lease term, unless the rental payments are structured to increase in line with expected general inflation, in which case the group recognises annual rent expense equal to amounts owed to the lessor.

Properties leased to Group Company

Housing properties are leased to Bamboo Estates based on a 5-year lease. The lease commences from the time the tenancy in Bamboo Estates begins and is recognised on a straight-line basis over the lease term.

Investment in subsidiaries and joint ventures

The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Group. Control is achieved where the group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Investments in subsidiaries and joint ventures are accounted for at cost less impairment in the individual company financial statements.

An entity is treated as a joint venture where the Group is party to a contractual agreement with one or more parties from outside of the Group to undertake an economic activity that is subject to joint control. The Consolidated Statement of Comprehensive Income includes the Group’s share of the operating results applying accounting polices consistent to the Group. In the Consolidated Statement of Financial Position the interest in associated undertakings are shown as the Group’s share of the identifiable net assets/liabilities.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at 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 payment terms have been agreed at below market rate, and where material, the balance is shown at the present value, discounted at a market rate.

Creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest rate method.

Properties for sale

Properties for outright sale (including those under construction) are valued at the lower of cost and net realisable value. Cost comprises materials, direct labour and direct development overheads. Net realisable value is based on estimated sales price after allowing for all further costs of completion and disposal.

Stock

Stocks are stated at the lower of cost or net realisable value. Where necessary, provision is made for obsolete and defective stock.

Current asset investments

Investments are stated at cost.

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Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

Gift Aid Income

Gift aid income is recognised in the year of receipt.

3. Particulars of turnover, cost of sales, operating expenditure and operating surplus Group – continuing activities

2025 2025 2025 2025 2025
Gain on
disposal of Operating
Cost of Operating housing surplus/
Turnover sales expenditure properties (deficit)
£’000 £’000 £’000 £’000 £’000
Social housing lettings 78,247 - (73,522) - 4,725
Other social housing
activities
Disposal of housing properties - - - 1,463 1,463
Current asset property sales 1,191 (808) - - 383
Development expenditure - - (415) - (415)
Other – social 395 - - - 395
1,586 (808) (415) 1,463 1,826
Activities other than social
housing
Corporate repairs 704 (693) - - 11
Lettings 1,785 - (539) - 1,246
Other 335 - (27) - 308
82,657 (1,501) (74,503) 1,463 8,116

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Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

2024 2024 2024 2024 2024
Gain on
disposal of Operating
Cost of Operating housing surplus/
Turnover sales expenditure properties (deficit)
£’000 £’000 £’000 £’000 £’000
Social housing lettings 71,379 - (70,860) - 519
Other social housing
activities
Disposal of housing properties - - - 1,558 1,558
Current asset property sales 2,454 (2,008) - - 446
Development expenditure - - (444) - (444)
Other 301 - - - 301
2,755 (2,008) (444) 1,558 1,861
Activities other than social
housing
Corporate repairs 230 (196) - - 34
Lettings 1,939 - (786) - 1,153
Other 921 - (195) - 726
77,224 (2,204) (72,285) 1,558 4,293

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Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

Company – continuing activities

2025 2025 2025 2025 2025
Gain on
disposal of Operating
Cost of Operating housing surplus/
Turnover sales expenditure properties (deficit)
£’000 £’000 £’000 £’000 £’000
Social housing lettings 78,247 - (73,585) - 4,662
Other social housing
activities
Disposal of housing properties - - - 1,463 1,463
Current asset property sales 1,191 (808) - - 383
Development expenditure - - (385) - (385)
Other - social 396 - - - 396
1,587 (808) (385) 1,463 1,857
Activities other than social
housing
Corporate repairs 704 (693) - - 11
Lettings 850 - (61) - 789
Other – non-social 709 - (28) - 681
82,097 (1,501) (74,059) 1,463 8,000

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Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

2024 2024 2024 2024 2024
Gain on
disposal of Operating
Cost of Operating housing surplus/
Turnover sales expenditure properties (deficit)
£’000 £’000 £’000 £’000 £’000
Social housing lettings 71,379 - (70,842) - (537)
Other social housing
activities
Disposal of housing properties - - - 1,558 1,558
Current asset property sales 2,454 (2,008) - - 446
Development expenditure - - (429) - (429)
Other 301 - - - 301
2,755 (2,008) (429) 1,558 1,876
Activities other than social
housing
Corporate repairs 230 (196) - - 34
Lettings 1,075 - (379) - 696
Other 1,222 - (145) - 1,077
76,661 (2,204) (71,795) 1,558 4,220

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Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

Turnover, operating expenditure, and operating surplus/(deficit) from social housing lettings

Group

Group
2025 2025 2025 2025 2024
Low cost
General Supported home
housing housing ownership Total Total
£’000 £’000 £’000 £’000 £’000
Turnover from social housing
lettings
Rent receivable net of identifiable
service charges and net of voids		 61,943 10,507 245 72,695 66,943
Service charge income 3,304 560 - 3,864 2,744
Charges for support services 781 133 - 914 926
Amortisation of government grants 492 83 - 575 387
Other revenue grants 170 29 - 199 379
Total turnover on social housing
lettings		 66,690 11,312 245 78,247 71,379
Operating expenditure on social
housing lettings
Management (23,344) (3,962) - (27,306) (25,999)
Service charge costs (3,256) (552) - (3,808) (3,060)
Routine maintenance (12,536) (2,126) - (14,662) (15,060)
Planned maintenance (9,228) (1,565) - (10,793) (10,559)
Major repairs expenditure (4,630) (785) - (5,415) (5,249)
Bad debts (462) (78) - (540) (202)
Depreciation of housing properties (8,599) (1,467) - (10,066) (9,968)
Impairment of housing properties (49) (8) - (57) (22)
Restructuring and other costs - - - - -
Lease costs (748) (127) - (875) (741)
Total expenditure on social housing
lettings		 (62,852) (10,670) - (73,522) (70,860)
Operating surplus/(deficit) on social
housing lettings		 3,838 642 245 4,725 519
Void losses (786) (133) - (919) (854)

Management costs include £1,518k (2024: £1,750k) of current and past pension service costs for both the Merseyside Pension Fund (MPF) and the Social Housing Pension Scheme (SHPS).

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Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

Company

Company
2025 2025 2025 2025 2024
Low cost
General Supported home
housing housing ownership Total Total
£’000 £’000 £’000 £’000 £’000
Turnover from social housing
lettings
Rent receivable net of identifiable
service charges and net of voids		 61,943 10,507 245 72,695 66,943
Service charge income 3,304 560 - 3,864 2,744
Charges for support services 781 133 - 914 926
Amortisation of government grants 492 83 - 575 387
Other revenue grants 170 29 - 199 379
Total turnover on social housing
lettings		 66,690 11,312 245 78,247 71,379
Operating expenditure on social
housing lettings
Management (23,359) (3,962) - (27,321) (25,968)
Service charge costs (3,256) (552) - (3,808) (3,060)
Routine maintenance (12,536) (2,126) - (14,662) (15,060)
Planned maintenance (9,228) (1,565) - (10,793) (10,559)
Major repairs expenditure (4,630) (785) - (5,415) (5,249)
Bad debts (462) (78) - (540) (202)
Depreciation of housing properties (8,647) (1,467) - (10,114) (9,981)
Impairment of housing properties (49) (8) - (57) (22)
Restructuring and other costs - - - - -
Lease costs (748) (127) - (875) (741)
Total expenditure on social
housing lettings		 (62,915) (10,670) - (73,585) (70,842)
Operating surplus/(deficit) on
social housing lettings		 3,775 642 245 4,662 537
Void losses (786) (133) - (919) (854)

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Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

4. Accommodation in management and development

At 31
At 1 April March
2024 Additions Disposals Reclassification 2025
No. No. No. No. No.
Units owned:
Social housing
General needs
Social rent 9,282 2 (23) 7 9,268
Affordable rent 1,526 21 (2) (1) 1,544
Supported housing 1,853 7 - (2) 1,858
Intermediate Rent 19 13 - - 32
Low Cost home ownership 91 21 (2) - 110
Total social housing homes
owned		 12,771 64 (27) 4 12,812
Non-social housing
Market rented 4 - - (4) -
Total homes owned 12,775 64 (27) - 12,812
Other homes managed:
Homes managed for Wirral Borough
Council		 30 17 - - 47
Supported housing - 6 - - 6
Total homes 12,805 87 (27) - 12,865

Units in development at 31 March 2025 were 189 (2024: 236).

Leasehold units at 31 March 2025 were 535 (2024: 535).

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Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

5. Operating surplus

The operating surplus is arrived at after charging/(crediting):

Group Group Company Company
2025 2024 2025 2024
£’000 £’000 £’000 £’000
Impairment losses of housing properties (note 12) 57 22 57 22
Depreciation of housing properties (note 12) 10,066 9,969 10,114 9,981
Depreciation of other tangible fixed assets (note 13) 329 195 329 195
Amortisation of intangible fixed assets (note 14) 110 81 110 81
Amortisation of government grants (note 24) (575) (388) (575) (388)
Operating lease rentals - vehicles 817 714 817 714
Auditors’ remuneration (excluding VAT):
Audit of the financial statements of the Company 62 34 62 34
Audit of the financial statements of the subsidiaries 14 14 - 2
Other services 4 3 4 3

6. Gain on disposal of housing properties

Group and Company
2025 2024
£’000 £’000
Disposal proceeds 2,242 2,212
Amount due to council for RTB sales (201) (411)
Carrying value of fixed assets (552) (229)
Administration and legal expenditure (26) (14)
1,463 1,558

There were 12 (2024: 20) Right to Buy properties sold during the year and 10 (2024: 6) Right to Acquire sales.

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Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

7. Interest receivable and other finance income

Group
 Company Company
2025
2024		 2025 2024
£’000
£’000		 £’000 £’000
Interest receivable and similar income 78
46		 78 46
Gift Aid received from subsidiaries -
39		 465 457
Defined benefit pension charge – MPF (note 27) 361
370		 361 370
439
455		 904 873

8. Interest payable and financing costs

Interest payable and financing costs
Restated
Group and Company
2025 2024
£’000 £’000
Loans and bank overdrafts 3,202 3,091
Defined benefit pension charge–SHPS (note 27) 14 11
3,216 3,102
Loan re-financing cost 106 106
3,322 3,208

9. Employee information

Average monthly number of employees expressed in full time equivalents (calculated based on a standard working week of 37 hours):

Group and Company
2025 2024
No. No.
Administration 205 214
Property services 60 66
Housing, support and care 144 166
Building operatives 174 141
583 587

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Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

Group and Company Group and Company
2025 2024
Employee costs £’000 £’000
Wages and salaries 23,840 22,027
Social security costs 2,484 2,244
Pension costs 4,712 4,454
Restructuring 464 333
31,500 29,058

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-time 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 termination payments) exceeded £60,000 was as follows:

2025 2025 2024 2024
Includes Includes
termination termination
Total payments Total payments
No. No. No. No.
£60,001 - £70,000 £60,001 - £70,000 55 4 39 -
£70,001 - £80,000 £70,001 - £80,000 18 1 19 -
£80,001 - £90,000 £80,001 - £90,000 11 - 4 -
£90,001 - £100,000 £90,001 - £100,000 12 - 2 -
£100,001 - £110,000 £100,001 - £110,000 5 1 6 1
£110,001 - £120,000 £110,001 - £120,000 7 2 2 -
£120,001 - £130,000 £120,001 - £130,000 2 - 2 2
£130,001 - £140,000 £130,001 - £140,000 3 - 2 -
£140,001 - £150,000 £140,001 - £150,000 - - - -
£150,001 - £160,000 £150,001 - £160,000 2 1 - -
£160,001 - £170,000 £160,001 - £170,000 - - 2 -
£170,001 - £180,000 £170,001 - £180,000 - - - -
£180,001 – £190,000 £180,001 – £190,000 - - - -
£190,001 - £200,000 £190,001 - £200,000 - - 1 -
£200,001 - £210,000 £200,001 - £210,000 1 - 1 -
£210,001 - £220,000 £210,001 - £220,000 - - - -
£220,001 - £230,000 £220,001 - £230,000 - - - -
£230,001 - £240,000 £230,001 - £240,000 1 1 - -
£240,001 - £250,000 £240,001 - £250,000 - - - -
£250,001 - £260,000 £250,001 - £260,000 1 - - -
£260,001 - £270,000 £260,001 - £270,000 - - 1 1

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Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

10. Key management personnel remuneration

Key management personnel comprise the executive directors and non-executive Board Members. Total remuneration (excluding employers NIC) amounted to £1,003k, (2024: £1,079k).

Remuneration for executive directors for the year ended 31 March:

2025 2024
£’000 £’000
Wages and salaries 748 680
Expense allowances 58 60
Pension contributions 117 154
Termination benefits 40 92
963 986
Employers NIC 96 110
1,059 1,096

Remuneration payable to the highest paid director in relation to the period of account amounted to £224.6k (2024: £176.2k) but 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 or special terms. The employer’s pension contribution paid on behalf of the highest paid director amounted to £32.6k (2024: £39.5k).

An amount of £nil (2024: £57k) has paid to a third party for Directors services relating to Marketing.

Page | 62

Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

Non-executive Board Member remuneration for the year ended 31 March:

Non-executive Board Member remuneration for the year ended 31 March:
2025 2024
£ £
Magenta Living Board:
Ann-Louise Gilmore 8,662 8,250
Myles Edwards 10,504 10,000
Liam Kelly 8,662 8,250
Ged Lucas 16,279 15,500
Wendy Gooley – resigned 31/05/2025 4,729 3,875
Michael Riley 6,821 6,250
Stephen Allcock 6,821 6,250
Rachel Barber – appointed 10/10/2024 4,129 -
Helen O’Doherty – appointed 10/10/2024 3,251 -
Robert Chapman – appointed 10/10/2024 3,251 -
Paul Richards – appointed 10/10/2024 3,251 -
Andrew McCullagh – resigned 12/06/2024 1,002 3,500
Sue Goodman – resigned 31/03/2025 8,662 8,250
Julie Booker – resigned 31/03/2025 6,821 6,250
Mike Turner – resigned 09/10/2024 4,334 8,250
Paul McGrady – resigned 29/04/2024 542 6,250
Ann-Marie Spencer – resigned 07/11/2023 - 4,083
97,721 94,958
Martyn Green - 8,250
- 8,250
Total Board remuneration 97,721 103,208

Martyn Green was a Board Director of Bamboo Estates LLP.

Page | 63

Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

11. Tax on surplus on ordinary activities

Analysis of the charge in the year:

11. Tax on surplus on ordinary activities
Analysis of the charge in the year:
Group Company
2025 2024 2025 2024
£’000 £’000 £’000 £ 000 £’000
Current tax
UK corporation tax on surplus for the period - - - -
Adjustments in respect of prior years - 49 - -
- 49 - -
Deferred tax
Net origination and reversal of timing differences - - - -
Total tax - 49 - -
Total tax reconciliation:
Group Group Company
Restated Restated
2025 2025
2024		 2025 2024
£’000 000
£’000		 £’000 £’000
Surplus/(Deficit) on ordinary activities
before tax		 6,226 6,226
2,414		 6,575 2,759
Theoretical tax at UK corporation tax
rate 25% (2024: 25%)		 1,557 1,557
604		 1,644 690
Effects of:
Income not taxable for tax purposes (1,557) (1,557)
(604)		 (1,644) (690)
Adjustments in respect of prior years - -
49		 - -
Total tax charge - 49 - -

Page | 64

Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

12. Tangible fixed assets: properties

Group housing properties Shared
Social Social Completed ownership
housing housing shared housing
properties properties ownership properties
held for under housing under
letting
construction		 properties construction Total
£’000 £’000 £’000 £’000 £’000
Cost
At 1 April 2024 326,733 21,930 6,592 6,097 361,352
Additions - 10,274 - 2,875 13,149
Work to existing properties 10,260 - - - 10,260
Schemes completed 8,136 (8,136) 3,705 (3,705) -
Reclassification 2,446 (2,446) - - -
Disposal – sales (486) - - - (486)
At 31 March 2025 347,089 21,622 10,297 5,267 384,275
Depreciation and impairment
At 1 April 2024 (109,182) - (126) - (109,308)
Depreciation charged in the
year		 (9,616) - (450) - (10,066)
Impairment losses (57) - - - (57)
Released on disposal - sales 473 - - - 473
At 31 March 2025 (118,382) - (576) **- ** (118,958)
Net Book value
At 31 March 2025 228,707 21,622 9,721 5,267 265,317
At 31 March 2024 217,551 21,930 6,466 6,097 252,044

Page | 65

Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

Company housing Shared
properties Social Social Completed ownership
housing housing shared housing
properties properties ownership properties
held for under housing under
letting
construction		 properties construction Total
£’000 £’000 £’000 £’000 £’000
Cost
At 1 April 2024 330,645 22,917 6,592 6,329 366,483
Additions - 10,807 - 2,975 13,782
Work to existing properties 10,260 - - - 10,260
Schemes completed 8,136 (8,136) 3,705 (3,705) -
Reclassification 2,446 (2,446) - - -
Disposal – sales (486) - - - (486)
At 31 March 2025 351,001 23,142 10,297 5,599 390,039
Depreciation and impairment
At 1 April 2024 (109,550) - (127) - (109,677)
Depreciation charged in the
year		 (9,664) - (450) - (10,114)
Impairment losses (57) - - - (57)
Released on disposal - sales 466 - - - 466
At 31 March 2025 (118,805) - (577) **- ** (119,382)
Net Book value
At 31 March 2025 232,196 23,142 9,720 5,599 270,657
At 31 March 2024 221,095 22,917 6,465 6,329 256,806

Impairment of Housing Properties

Housing properties are assessed at each reporting date to determine whether an indicator of impairment exists, 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 asset (or 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 (VIUSP), this is the present value of the asset’s remaining service potential plus the net amount the entity will receive from its disposal.

Impairment loss of £57k (2024: £22k) is recognised in the Statement of Comprehensive Income for the Group and the Company, representing properties that have long-term voids.

Page | 66

Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

Housing properties, including offices, book value net of depreciation comprises:

Group Group Company Company
2025 2024 2025 2024
£’000 £’000 £’000 £’000
Freehold land and buildings - housing
properties		 265,317 252,044 270,657 256,806
Freehold land and buildings - office
properties (note 13)		 3,210 3,391 3,210 3,391
268,527 255,435 273,867 260,197

Social housing assistance:

Total accumulated social housing grant received or receivable at 31 March:

Group and Company Group and Company
2025 2024
£’000 £’000
Held as deferred capital grants (note 24) 40,689 37,210
Recognised in statement of
comprehensive income		 774 766
41,463 37,976

Expenditure on works to existing properties:

Group Group Company Company
2025 2024 2025 2024
£’000 £’000 £’000 £’000
Components capitalised 10,260 12,976 10,260 12,976
Amounts charged to income and
expenditure account (note 3)		 5,415 5,325 5,415 5,325
Total 15,675 18,301 15,675 18,301

Page | 67

Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

13. Tangible fixed assets: other

Group and Company Furniture
Computer
Freehold fixtures
s and
office and
office		 Other
properties fittings
equipment		 Equipment Total
£’000 £’000
£’000		 £’000 £’000
Cost
At 1 April 2024 5,303 107
1,227		 730 7,367
Additions - 7
431		 - 438
At 31 March 2025 5,303 114
1,658		 730 7,805
Depreciation and impairment
At 1 April 2024 (1,912) (64)
(1,128)		 (730) (3,834)
Depreciation charged in the
year		 (181) (13)
(135)		 - (329)
At 31 March 2025 (2,093) (77)
(1,263)		 (730) (4,163)
Net Book value
At 31 March 2025 3,210 37
395		 - 3,642
At 31 March 2024 3,391 43
99		 - 3,533

Page | 68

Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

14. Intangible fixed assets

Intangible fixed assets
Group and Company
Software Total
£’000 £’000
Cost
At 1 April 2024 2,016 2,016
Additions 553 553
Disposals (266) (266)
At 31 March 2025 2,303 2,303
Amortisation
At 1 April 2024 (1,391) (1,391)
Changed in the year (110) (110)
Charged on disposals 163 163
At 31 March 2025 (1,338) (1,338)
Net Book value
At 31 March 2025 965 965
At 31 March 2024 625 625

==> picture [16 x 16] intentionally omitted <==

15. Investment properties: non-social housing properties held for letting

Group and Company
2025 2024
£’000 £’000
At 1 April 16,225 15,351
Additions 3,538 -
Revaluation 993 874
At 31 March 20,756 16,225

Properties are valued at Open Market Value as at 31 March 2025 based on the valuation by external RICS advisors and are held to be leased to the Bamboo Estates.

Page | 69

Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

16. Investment in subsidiary

The Group comprises the following entities, all are registered in England and Wales and incorporated under the Companies Act 2006:

Ownership Registered/Non- Ownership Registered/Non- Nature of business
Name registered registered
Wirral Partnership Homes
(Developments) Limited		 100% 100%
Non-registered Build and design		 Non-registered Build and design
Hilbre Projects LLP 100% 100%
Non-registered Property development		 Non-registered Property development
Bamboo Estates LLP 100% 100%
Non-registered Private rental		 Non-registered Private rental
Wirral Partnership Homes
(Building Services) Limited		 100% 100%
Non-registered Dormant		 Non-registered Dormant

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 wound up, the liability of Magenta Living is limited to £1. Effective 1st April 2008 the trade, assets and all liabilities of WPH (Building Services) were transferred to 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 members. The controlling member is Wirral Partnership Homes (Developments) Limited, a wholly owned subsidiary of Magenta Living, that invested 60% of the initial capital. The second member is Wirral Partnership Homes (Building Services) Limited.

The current membership of Hilbre Projects LLP is held as Wirral Partnership Homes (Developments) Limited 99%, WPH Building Services Limited 1%.

The aggregate of share capital and reserves as at 31st March 2025 and of the profit and loss for the year ended on that date for the subsidiary undertakings were:

Aggregate
share capital Reserves Profit
£ £’000 £’000
Wirral Partnership Homes
(Developments) Limited		 1 1,492 88
Capital Members’
contribution interests Profit/(Loss)
£’000 £’000 £’000
Hilbre Projects LLP 120 (308) 1
Bamboo Estates LLP 90 - 457

Page | 70

Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

Investments in subsidiaries are:

WPH Dev Co Hilbre Bamboo Total
£’000 £’000 £’000 £’000
At 1 April 2024 At 1 April 2024 10 120 90 220
At 31 March 2025 At 31 March 2025 10 120 90 220

17. Investment in joint venture

Bamboo Estates is a registered LLP is a partnership between Magenta Living and WPH (Developments) Ltd, with the Group holding 100% interest.

This is now included as a subsidiary.

18. Properties for sale

18. Properties for sale
Group Company
2025 2024 2025 2024
£’000 £’000 £’000 £’000
Work-in-progress 39 39 39 39
Shared ownership – work in progress 1,967 2,363 1,967 2,363
Shared ownership – completed 2,085 814 2,085 814
4,091 3,216 4,091 3,216

Page | 71

Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

19. Debtors

19. Debtors
Group Company
2025 2024 2025 2024
£’000 £’000 £’000 £’000
Due within one year
Rent and service charges receivable 1,680 2,210 1,671 2,204
_Less:_provision for bad and doubtful rent
and service charge debts		 (986) (795) (979) (789)
694 1,415 692 1,415
Trade debtors 5,670 2,063 5,669 2,063
_Less:_provision for bad and doubtful
trade debts		 (442) (253) (442) (253)
Grants receivable 696 - 696 -
Other debtors 160 1,226 160 1,201
VAT receivable 616 - 586 -
Prepayments and accrued income 2,308 1,592 2,303 1,592
Amounts due from group undertakings - - 1,519 356
9,702 6,043 11,183 6,374
Group Company
2025 2024 2025 2024
£’000 £’000 £’000 £’000
Due after more than one year
Other debtors 182 236 182 236
182 236 182 263

20. Cash at bank and in hand

20. Cash at bank and in hand
Group
Company		 Company
2025 2024 2025 2024
£’000 £’000 £’000 £’000
Cash at bank and in hand 8,198 7,981 5,726 5,212

Page | 72

Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

21. Creditors: amounts falling due within one year

Group Group Company Company
2025 2024 2025 2024
£’000 £’000 £’000 £’000
Trade creditors 2,056 1,765 1,444 1,757
Rent and service charges received in advance 2,479 2,078 2,425 1,987
Deferred capital grants (note 24) 653 464 653 464
Other taxation and social security 653 708 653 652
Other creditors 968 989 968 987
Accruals and deferred income 16,718 10,922 16,718 10,922 12,516 8,758
Amounts due to group undertakings - - 6,057 1,833
23,527 16,926 23,527 16,926 24,716 16,438 24,716 16,438

Accruals and deferred income includes deferred income of £1,339k (2024: £1,332) in respect of the Community Fund (note 26).

22. Creditors: amounts falling after more than one year

Group Group Company Company
2025 2024 2025 2024
Restated Restated
£’000 £’000 £’000 £’000
Debt (note 23) 95,724 90,618 95,724 90,618
Deferred capital grants (note 24) 40,036 36,746 40,036 36,746
Accruals and deferred income 1,176 - 1,176 -
Recycled capital grant fund (note 25) 70 36 70 36
Minority Interest 80 80 - -
137,086 127,480 137,006 127,400

23. Debt

23. Debt
Group Company
2025 2024 2025 2024
Restated Restated
£’000 £’000 £’000 £’000
Between two and five years 9,000 4,000 9,000 4,000
After five years 87,391 87,391 87,391 87,391
Loan arrangement fees (667) (773) (667) (773)
95,724 90,618 95,724 90,618

Page | 73

Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

The £137.4m loan facility comprises £87.4m (2024: £87.4m) of fixed rate and fully drawn debt, and a £50.0m revolving credit facility at a variable rate for a 5-year term, of which £9.0m has been drawn in the year with a remaining £41.0m.

The fixed debt is repayable by bullet in two tranches: £42.4m (February 2037) and £45.0m (February 2047).

The weighted average interest rate of the cost of borrowing in the year was 3.29% (2024: 3.24%).

This loan facility has been secured by way of a charge of 7,009 stock transferred properties, representing 54.2% of Magenta’s property stock holding. The carrying value of this stock is £285.3m (2024: £191.1m), which reflects revaluation of charged stock in 2024/25. 45.8% are now classified as either de-allocated or unallocated units.

The 7,009 units comprises of 5,760 units to secure the loan plus 1,249 units to secure the pension bond which has reduced from £30.0m to £881k. The stock remains in charge pending the new agreement to increase the amount of the RCF which is currently being negotiated.

24. Deferred capital grants

Deferred capital grants
Group and Company
2025 2024
£’000 £’000
At 1 April 37,210 31,436
Grant received in year 4,056 6,176
Amortisation of capital grant (533) (388)
Released on disposal (44) (14)
At 31 March 40,689 37,210
The deferred income is included in the financial statements as
follows:
Amounts to be released within one year 653 464
Amounts to be released in more than one year 40,036 36,746
40,689 37,210

Page | 74

Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

25. Recycled capital grant fund

Recycled capital grant fund
Group and Company
2025 2024
£’000 £’000
At 1 April 36 21
Inputs to fund:
Grants recycled 32 14
Interest accrued 2 1
Recycling of grant - -
70 36
Repayment of grants to the Homes England - -
At 31 March 70 36
Amounts 3 years old or older where repayment may be required. - -

26. Deferred income

Group and Company
2025 2024
£’000 £’000
At 1 April 1,332 2,100
Deferred income received in the year 7 13
Utilised in the year:
Wirral Borough Council - -
Magenta Living - (781)
1,339 1,332
The deferred income is included as follows:
Amounts falling due within one year 1,339 2,100
1,339 1,332

Deferred income relates to monies paid into the Community Fund and monies received by Magenta to fund future revenue projects. Further background regarding the Community Fund is given in note 2. Related balances to the Community Fund are shown within cash at bank and in hand of £164k (2024: £162k). The remainder of the balance is shown within deferred income payments received in advance.

There was £nil utilised in the year (2024: £781k).

Page | 75

Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

27. Employee pension schemes

Summary of pension asset/(liability) (Group and Company):

2025 2024
Scheme £’000 £’000
MPF 2,876 6,952
SHPS (189) (342)
2,687 6,610

Merseyside Pension Fund (MPF)

The Merseyside Pension Fund is a multi-employer scheme, administered by Wirral Metropolitan Borough Council under the regulations governing the Local Government Pension Scheme, a defined benefit scheme. The most recent formal actuarial valuation was completed as at 31 March 2022.

The employers’ contributions to the Merseyside Pension Fund by the Group and Company for the year ended 31 March 2025 were £829k (2024: £996k) at a contribution rate of 16.8% of pensionable salaries. The employer’s contribution rate for the year ending 31 March 2026 has been set at 16.8%. Estimated employers’ contributions to the Merseyside Pension Fund during the accounting period commencing 1 April 2025 are £787k.

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

(liability):
2025 2024
£’000 £’000
Fair value of plan assets 118,397 118,004
Present value of defined benefit obligation (92,537) (105,268)
Remeasuring adjustment due to asset ceiling (22,984) (5,784)
Surplus in plan 2,876 6,952

Changes in plan assets:

2025 2024
£’000 £’000
Opening fair value of plan assets 118,004 112,866
Interest on plan assets 5,724 5,374
Actuarial gains/(losses) (2,889) 1,634
Administration expenses (48) (51)
Employer contributions 829 996
Member contributions 638 686
Benefits / transfers paid (3,861) (3,501)
Closing fair value of plan assets 118,397 118,004

Page | 76

Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

The actual return on the plan assets (including any changes in share of assets) over the period ended 31 March 2025 was £2,835k (2024: (£7,009k)).

Changes in present value of defined benefit obligations:

2025 2024
£’000 £’000
Opening defined benefit obligations 105,268 105,667
Current service cost 1,518 1,749
Interest cost 5,080 5,004
Members contributions 638 686
Past service cost - 1
Actuarial (gains) (16,106) (4,338)
Benefits/transfers paid (3,861) (3,501)
Closing defined benefit obligations 92,537 105,268

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

2025 2024
£’000 £’000
Current service cost 1,518 1,749
Administration expenses 48 51
Past service cost - 1
Net interest (income)/expense (361) (370)
Defined benefit costs recognised in statement of
comprehensive income (SOCI)		 1,205 1,431

Page | 77

Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

Defined benefit costs recognised in other comprehensive income:

Defined benefit costs recognised in other comprehensive income:
2025 2024
£’000 £’000
Experience on plan assets (excluding amounts included in net
interest cost) – gain/(loss)		 (2,889) 1,634
Experience gains and losses arising on the plan liabilities – (loss) (206) (533)
Effects of changes in the demographic assumptions underlying the
present value of the defined benefit obligation – gain		 316 1,356
Effects of changes in the financial assumptions underlying the
present value of the defined benefit obligation – gain		 15,996 3,515
Remeasuring adjustment due to asset ceiling (16,917) (5,784)
Total amount recognised in Other Comprehensive Income –
(loss)/gain		 (3,700) 188

Major categories of plan assets as a percentage of total plan assets:

2025 2024
% %
Equities 41.4% 38.7%
Government bonds 17.0% 20.3%
Other bonds 5.2% 6.1%
Property 9.2% 9.2%
Cash / liquidity 6.1% 3.6%
Other 21.1% 22.1%

Page | 78

Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

Sensitivity Analysis:

+0.5% 1 year
+1%
-1%
p.a.
+0.25%
+0.25%
increase in
change
change
discount
p.a.
p.a. pay
life
investment
investment
Central
rate
inflation
growth
expectancy
return
return
£’000
£’000
£’000
£’000
£’000
£’000
£’000
Liabilities 92,537
85,902
96,044
93,284
94,407
92,537
92,537
Assets (118,397) (118,397) (118,397) (118,397)
(118,397)
(119,569)
(117,225)
Surplus (25,860)
(32,495)		 (22,353) (25,113)
(23,990)
(27,032)
(24,668)
Projected
Service
Cost for		 1,087
915
1,182
1,087
1,117
1,087
1,087
next year
Projected
Net
Interest (1,549)
(2,104)
(1,342)
(1,505)
(1,439)
(1,618)
(1,479)
Cost for
next year

Principal actuarial assumptions:

==> picture [16 x 16] intentionally omitted <==

The main financial assumptions used by the actuary in calculating the figures for FRS 102 (Retirement Benefits) were:

(Retirement Benefits) were:
2025 2024
% p.a. % p.a.
Discount rate 5.9% 4.9%
Rate of increase in salaries 4.1% 4.1%
Rate of increase in pensions 2.7% 2.7%
Inflation assumption - CPI 2.6% 2.6%

Mortality Assumptions

The post-retirement mortality assumptions adopted to value the benefit obligation at March 2023 are based on the S3PA CMI 2021 tables and S3PA CMI 2022 tables for March 2024 for both non-retired members and current pensioners.

Page | 79

Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

The assumed life expectations on retirement at age 65 are:

2025 2024
Years Years
Retiring today:
Males 20.8 20.9
Females 23.5 23.4
Retiring in 20 years:
Males 22.1 22.2
Females 25.2 25.2

Social Housing Pension Scheme (SHPS)

The company participates in the Social Housing Pension Scheme (the Scheme), a multiemployer scheme which provides benefits to some 500 non-associated employers. The Scheme is a defined benefit scheme in the UK.

The Scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

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

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

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

The latest accounting valuation was carried out with an effective date of 30 September 2024. The liability figures from this valuation were rolled forward for accounting year-ends from the following 31 March 2024 to 28 February 2025 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 uncertainty surrounding some of these changes. The Trustee is seeking clarification from the Court on these items, and this process is ongoing with it being unlikely to be resolved before mid-2025 at the earliest. It 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 direction is received, it is unknown whether the full (or any) increase in liabilities will apply and therefore,

Page | 80

Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

in line with the prior year, no adjustment has been made in these financial statements in respect of this.

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

(liability):
2025 2024
£’000 £’000
Fair value of plan assets 1,369 1,386
Present value of defined benefit obligation (1,558) (1,728)
(Deficit) in plan (189) (342)
Reconciliation of opening and closing balances of the fair value of plan assets:
2025 2024
£’000 £’000
Fair value of plan assets at start of year 1,386 1,414
Interest income 70 70
Experience on plan assets (excluding amounts included in interest
income) – (loss)		 (146) (148)
Contributions made by the employer 98 93
Benefits paid and expenses (39) (43)
Fair value of plan assets at end of year 1,369 1,386

The actual return on the plan assets (including any changes in share of assets) over the period ended 31 March 2025 was (£76k) (2024: (£78k)).

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

2025 2024
£’000 £’000
Defined benefit obligation at start of year 1,728 1,696
Expenses 4 4
Interest expense 84 81
Actuarial loss/(gain) due to scheme experience 96 48
Actuarial (gain) due to changes in demographic assumptions - (17)
Actuarial (gain) due to changes in financial assumptions (315) (41)
Benefits paid and expenses (39) (43)
Defined benefit obligation at end of year 1,558 1,728

Page | 81

Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

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

2025 2024
£’000 £’000
Current service cost - -
Expenses 4 4
Net interest expense 14 11
Defined benefit costs recognised in statement of
comprehensive income (SOCI)		 18 15

Defined benefit costs recognised in other comprehensive income:

Defined benefit costs recognised in other comprehensive income:
2025 2024
£’000 £’000
Experience on plan assets (excluding amounts included in net
interest cost) – (loss)		 (146) (148)
Experience gains and losses arising on the plan liabilities – (loss) (96) (48)
Effects of changes in the demographic assumptions underlying the
present value of the defined benefit obligation – gain		 - 17
Effects of changes in the financial assumptions underlying the
present value of the defined benefit obligation – gain		 315 41
Total amount recognised in Other Comprehensive Income –
gain/(loss)		 73 (138)

Page | 82

Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

Assets:

Assets:
2025 2024
£’000 £’000
Absolute Return - 54
Alternative Risk Premia - 44
Cash 19 27
Credit 52 -
Credit Relative Value - 46
Currency Hedging 2 (1)
Distressed Opportunities - 49
Emerging Markets Debt - 18
Global Equity 153 138
Infrastructure - 140
Insurance-Linked Securities 4 7
Investment Grade Credit 42 -
Liability Driven Investment 415 565
Liquid Alternatives 254 -
Long Lease Property - 9
Net Current Assets 3 2
Opportunistic Illiquid Credit - 54
Private Credit 168 -
Private Equity 1 1
Private Debt - 55
Property 69 56
Real Assets 164 -
Risk Sharing - 81
Secured Income 23 41
Total assets 1,369 1,386

Key assumptions

Key assumptions
2025 2024
% p.a. % p.a.
Discount rate 5.96% 4.93%
Inflation (RPI) 3.04% 3.08%
Inflation (CPI) 2.80% 2.80%
Salary Growth 3.80% 3.80%
Allowance for commutation of pension for cash at retirement (as a
percentage of maximum allowance)		 75% 75%

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Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

The mortality assumptions adopted at 31 March 2025 imply the following life expectancies at age 65:

age 65:
2025 2024
Years Years
Male retiring in 2025 (2024) 20.5 20.5
Female retiring in 2025 (2024) 23.0 23.0
Male retiring in 2045 (2044) 21.7 21.8
Female retiring in 2045 (2044) 24.5 24.4

28. Other provisions

28. Other provisions
Group and Company Group and Company
2025 2024
£’000 £’000
Other provisions 139 -
139 -

At 31 March 2025, the Company recognised a provision in respect of an overcharged income. Upon review and following legal advice, it is highly probable that the Company will be required to settle the overcharged income.

The amount of the settlement has been estimated at £139k based on detailed review performed, discussions with legal counsel and available information.

The provision is expected to be settled within the next 12 months.

29. Financial commitments

Capital expenditure commitments were as follows:

29. Financial commitments
Capital expenditure commitments were as follows:
Group and Company Group and Company
2025 2024
£’000 £’000
Capital expenditure
Expenditure contracted for but not provided in the accounts 24,357 11,517
Expenditure authorised by the Board, but not contracted 7,951 -
32,308 11,517

The above commitments will be financed primarily through current cash balances and the draw down under existing loan arrangements.

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Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

30. Operating leases

Payments

Total future minimum lease payments relate to the motor vehicle fleet and are set out below:

Group and Company
2025 2024
£’000 £’000
Motor vehicles minimum lease payments
Less than one year 916 884
One to five years 2,928 2,697
3,844 3,581

Receipts

Total future minimum lease receipts relate to properties leased to Bamboo and are set out below:

below:
Company
2025 2024
£’000 £’000
Property minimum lease receipts:
Less than one year 345 231
One to five years 772 694
1,117 925

31. Contingent liabilities

There were no contingent liabilities at 31 March 2025 (2024: none).

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Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

32. Net cash inflow from operating activities

32. Net cash inflow from operating activities
Restated
2025 2024
£’000 £’000
Surplus/(deficit) for the year 6,226 2,365
Adjustments for non-cash items:
Depreciation of tangible fixed assets 10,395 10,340
Impairment of tangible fixed assets 57 22
Amortisation of intangible assets (53) 81
Revaluation of investment properties (993) (874)
Distribution of 2022/23 profit realised on joint venture - 39
Realisation of Bamboo investment (as joint venture) - 660
(Increase) / decrease in properties for sale (1,271) 341
Decrease/ (increase) in stock 478 (114)
Increase in trade and other debtors (3,605) (2,026)
Increase in trade and other creditors 7,588 2,051
Increase in other provisions 139 -
Pension costs less contributions payable 641 716
Carrying amount of tangible fixed asset disposals 13 218
Adjustment for investing and financial activities:
Proceeds from the sale of tangible fixed assets (1,463) (1,776)
Government grants utilised in the year (545) (388)
Interest payable 3,216 3,102
Interest receivable (439) (455)
Loan arrangement fees 106 106
Taxation paid - -
Net cash generated from operating activities 20,490 14,408

33. Financial assets and liabilities

Financial assets

Other than short-term debtors, the Group financial assets held are cash balances held as cash at bank. They are sterling denominated and the amounts and interest rate profile at 31 March was:

2025 2024
£’000 £’000
Floating rate 8,198 7,981
Fixed rate - -
8,198 7,981

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Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

The floating rate financial assets attract interest at 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:

profile of the Group’s financial liabilities at 31 March was: profile of the Group’s financial liabilities at 31 March was:
2025 2024
£’000 £’000
Floating rate 9,000 4,000
Fixed rate 87,391 87,391
96,391 91,391

£5.0m (2024: £4.0m) has been drawn down in 2024/25 at an average variable rate of 6.02%. Fixed rate liabilities drawn down in 2021/22 are at the fixed rates of 3.0% on £42.4m and 3.3% on £45.0m.

Borrowing facilities

The Group has undrawn committed borrowing facilities. The facilities available at 31 March in respect of which all conditions precedent had been met were as follows:

2025 2024
£’000 £’000
Expiring in one year or less - -
Expiring in more than one year but not more than two years - -
Expiring in more than two years 41,000 46,000
41,000 46,000

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Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

34. Analysis of net debt

Analysis of net debt
1 April Non-cash
2024 movement 31 March
Restated Cash flow 2025
Group £’000 £’000
£’000		 £’000
Cash and cash equivalents 7,981 217
-		 8,198
Loans due within one year - -
-		 -
Loans due after one year (90,618) (5,106)
-		 (95,724)
Changes in net debt (82,637) (4,889)
-		 (87,526)
1 April Non-cash
2024 movement 31 March
Restated Cash flow 2025
Company £’000 £’000
£’000		 £’000
Cash and cash equivalents 5,212 514
-		 5,726
Loans due within one year - -
-		 -
Loans due after one year (90,618) (5,106)
-		 (95,724)
Changes in net debt (85,406) (4,592)
-		 (89,998)

35. Prior year adjustment

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During the year ended 31 March 2025, the Directors identified an error in accounting treatment of loan arrangement fees accounted in the previous year. The fees have been fully included in the FY 2021/22 in Statement of Comprehensive Income.

Under FRS 102 fees relating to new financing arrangements should be deducted from the carrying amount of the new loan and amortised over the duration of the loan.

The error has been corrected by restating each of the affected financial statements line items for the prior year. The adjustment has also been reflected in the opening reserves balance, as required by FRS 102.

Impact on Consolidated and Company Statements of Comprehensive Income

Year ended 31
March 2024
£’000
Interest payable and financing costs (increase) 106
Surplus on ordinary activities before taxation (decrease) (106)
Tax -
Surplus for the year (decrease) (106)
Total comprehensive income for the year (decrease) (106)

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Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

Impact on Consolidated and Company Statements of Financial Position

Impact on Consolidated and Company Statements of Financial Position
31 March
2024
£’000
Creditors: Amounts falling due after more than one year – Debt (decrease) (773)
Total net assets (increase) 773
Income and expenditure reserves (increase) 773

Impact on Consolidated and Company Statements of Changes in Reserves

31 March 31 March
2024 2023
£’000 £’000
Reserves balance – opening (increase) 879
Surplus for the year (decrease) (106)
Reserves balance – closing (increase) 773

As a result, opening retained earnings at 1 April 2023 increased by £879k, and profit for the year ended 31 March 2024 decreased by £106k, resulting in reserves as at 31 March 2024 increasing by £773k.

36. Related parties

There were no Board members who were tenants of Magenta Living during the year (2024: none).

There were no Board members who are elected member of Wirral Metropolitan Borough Council (2024: none).

Transactions with non-regulated entities

During the year Magenta Living had intra group transactions with subsidiary Wirral Partnership Homes (Developments) Limited, an unregulated entity, of £13,287k (2024: £3,529k) relating to housing property design and build services. A management charge of £522k (2024: £157k) 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 £6,041k (2024: £1,830k). The balance at the year-end due from Partnership Homes (Developments) Limited was £948k (2024: £252k).

During the year Magenta Living has intra group transactions with subsidiary Bamboo Estates LLP of £374k (2024: £305k). At the year-end, there was a balance due to Magenta Living from Bamboo Estates LLP of £571k (2024: £104k). The balance at the year-end due to Bamboo Estates LLP was £15k (2024: £2k).

Page | 89

Magenta Living Report and financial statements for the year ended 31 March 2025 Notes to the Financial Statements

During the year the Group had intra-group transactions with Hilbre Projects LLP, an unregulated entity, of £2k (2024: £nil) relating to winding up the trade. The balance at the year-end due to Magenta Living was £123k (2024: £121k). Magenta Living has fully provided for the balance.

Loan is recoverable on demand.

Intra-group loans and interest charges

A loan facility, to a maximum of £20m, was provided by Magenta Living to Wirral Partnership Homes (Developments) Limited for on-lending to Hilbre Projects LLP.

During the year the Group had intra-group loan with Hilbre Projects LLP, an unregulated entity, of £123k (2024: £121k) relating to winding up the trade. The balance at the year-end due to Magenta Living was £123k (2024: £121k). Magenta Living has fully provided for the loan.

Loan is recoverable on demand.

Disclosures in relation to key management personnel are included in note 10.

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Page | 90

GROUP AUDIT MANAGEMENT

LETTER

Group Audit Management Letter STRUTHERS

Year ending 31 March 2025

CONTENTS

Introduction ................................................................................................................1 Scope of the Audit Work ............................................................................................2 Key Audit Issues ................................................................................................ 3 - 14 Overview of Financial Statements ................................................................... 15 - 17 Independence .................................................................................................. 18 - 19 Qualitative Aspects of Accounting Practices and Financial Reporting ............ 20 - 21 Management Representation Letter and Audit Opinion ......................................... 22 Audit Adjustments............................................................................................ 23 - 26 Accounting and Internal Control Systems ....................................................... 27 - 28 Update on revision to FRS102 and Housing SORP ............................................... 29

Group Audit Management Letter

INTRODUCTION

Our audit of the financial statements of Magenta Living and its subsidiaries (‘the Group’) is complete. The purpose of this letter is to bring to your attention the findings to date from our audit.

In order to comply with the provisions of the International Standard on Auditing (ISA) 260 – ‘Communication with those Charged with Governance’ we report to management on the findings of our audit, with particular reference to:

We also take this opportunity to comment on the Group’s performance for the year and to confirm our professional integrity, objectivity and independence.

We see effective communication with the Group Audit and Risk Committee as being a key part of our audit, and it is important that there is effective two way communication. We welcome any feedback or questions regarding the conduct of the audit process.

This report is not intended to cover every matter which came to our attention during the audit. We do not accept any responsibility for any reliance placed on it by third parties. Our procedures are designed to support our audit opinion and cannot be relied upon to identify any weakness in systems or controls which may exist.

We would like to take this opportunity to formally record our appreciation for the assistance and co-operation provided to us by the Finance Team which assisted us during the course of our audit.

Beever and Struthers

Date: 29[th] September 2025

Group Audit Management Letter

1

SCOPE OF THE AUDIT WORK

As auditors to the Group for the year ended 31 March 2025 we are responsible for reporting on the financial statements of the Group which consists of the following entities:

Key:

PRP – Private Registered Provider

Wirral Partnership Homes (Building Services) Limited is currently dormant.

Group Audit Management Letter

2

KEY AUDIT ISSUES

The following table summarises the key audit issues we identified as requiring specific consideration and the audit procedures we undertook in relation to them.

Audit Issue per Audit Plan Overview

  1. Housing Properties valuation and valuation of Work in progress

Magenta Living (Significant audit risk)

Asset Management is of significance in terms of delivering new properties and planning future works to ensure that tenant homes are adequately maintained.

The September 2024 management accounts show development expenditure for the year to date of £0.28M compared to a budget of £0.91M. Management expect a material level of work in progress at 31 March 2025.

Management have also informed us of their intention to update and simplify the component useful economic lives. The latest Top 100 Housing associations UEL review has been provided as a baseline guide.

The audit risks for properties include:

Audit Procedures and Results

Housing Properties

During the year the Group incurred expenditure of £13.2M on properties under construction, with £10.3M being in relation to social housing properties and the remaining £2.9M on shared ownership properties.

A further £10.2M was incurred on new and replacement components.

The Group generated a surplus of £1.5M on the disposal of properties, including 12 Right to Buy sales and 10 Right to Acquire sales.

The annual depreciation charge on completed housing properties was £10.1M, an increase of £1.1M on the prior year following the completion of cladding and Landlord Responsibility Communal works that are not replacement components.

The Three Sales Point development was re-modelled and as a result £2.0M remains in Stock and was completed post year end. Of the 22 properties completed at year end, all units had sold post year end.

As part of the audit work we have:

Group Audit Management Letter

3

KEY AUDIT ISSUES

Audit Issue per Audit Plan Overview Audit Procedures and Results
1. Housing properties valuation and valuation of
Work in progress (continued)		 Housing Properties (continued)
•Agreed the movements in the housing properties
note and the closing balances to the housing
properties register;
•Considered whether there is any evidence of
impairment and reviewed the Group’s assessment
of impairment;
•Tested the split of the costs of shared ownership
properties between fixed and current assets;
•Assessed a sample of properties held for sale at the
year end to ensure they are stated at the lower of
cost and its selling price less costs to complete and
sell;
•Performed a proof in total test on the depreciation
charge for the year;
•Performed a proof in total test on the grant
amortisation charge for the year;
•Checked that accruals have been made for
development expenditure incurred up to 31 March
2025 but not invoiced;
•Reviewed recognition of grants received, grant
allocated to completed schemes and any amounts
due back to Homes England included in liabilities;
and
•Reviewed disclosure of financial commitments for
capital expenditure.
Audit findings
Our work identified an unexplained variance of
approximately £670K between the net book value of
housing properties per the fixed asset register and the
trial
balance.
The
asset
balance
is
currently
understated.
We
recommend
that
management
undertake a comprehensive review and data cleanse of
the fixed asset records to ensure full alignment between
the fixed asset register and the trial balance.
During our testing of property ownership using Land
Registry records, B&S identified one property for which
no Land Registry documentation was available. As a
result, B&S was unable to verify ownership via
independent Land Registry evidence. This highlights
the need for a comprehensive review of all units to
ensure ownership records are complete with the Land
Registry.
Components with a net book value totalling £282K were
replaced during the year. There was no adjustment to
remove these assets from note 12: tangible fixed assets
– properties, resulting in an overstatement of NBV for
Assets which should have been disposed of per the
Housing properties Tangible fixed assets note.

Group Audit Management Letter

4

KEY AUDIT ISSUES

Audit Issue per Audit Plan Overview

1. Housing properties valuation and valuation of Work in progress (continued) (Significant audit risk)

Magenta Living

Magenta Living leases social housing units to Bamboo Estates LLP on a five-year lease. These properties are treated as investment properties and held at market value at the year-end date. A RICS qualified valuer will again be appointed to value the properties.

Bamboo Estates LLP is a private lettings partnership between Magenta Living and Wirral Partnership Homes (Developments) Limited. Magenta Living leases social housing units to Bamboo on a five-year lease, during this time Bamboo lets the units in the private rent market and achieves a rental uplift of on average £60 per week.

Audit Procedures and Results

Investment Properties

Magenta Living leases social housing units to Bamboo on a five-year lease. These properties are treated as investment properties and held at market value at the year-end date.

The properties in Magenta Living were valued at £20.8M at 31 March 2025 by a qualified external valuer, an increase of £4.6M on the prior year value.

We have agreed the value of the investment properties to the valuations from the external surveyors. This included a review of the basis of the valuation and the underlying assumptions. We compared the movement to wider market data using property indices and found the difference to be immaterial.

Audit findings

Our review of the valuation of investment properties identified a typographical error within the external valuer’s report on investment properties. This error resulted in an unadjusted misstatement of £135K, leading to an understatement of fixed assets.

Wirral Partnership Homes (Developments) Limited

Wirral Partnership Homes (Developments) Limited is the Group’s development vehicle and recharges development costs to Magenta Living with a 5% uplift.

As part of the audit work we reviewed the basis for the recharge from Wirral Partnership Homes (Developments) Limited to Magenta Living and tested a sample of invoices to confirm the uplift of 5% had been applied in line with the Group’s policy.

Our work in this area was concluded satisfactorily.

Group Audit Management Letter

5

KEY AUDIT ISSUES

Audit Issue per Audit Plan Overview Audit Procedures and Results 2. Revenue and Debtors All Group Entities Income recognition is always a presumed audit risk and The systems in place to record and monitor income treatment may differ across Group entities. were documented as part of our interim procedures. Analytical procedures and sample testing have been undertaken to assess the completeness of the income. Substantive sample testing of year end debtor balances has also been undertaken. Below is a summary of entity specific procedures undertaken. Magenta Living (Rental income – other audit risk) Turnover: £82.7M (2024: £77.2M) (Other income – significant audit risk) Income for the year included £78.2M from social Rental income and related arrears have a significant housing lettings, £1.2M from first tranche shared impact on the Group’s financial statements. Rent ownership sales and £2.3M from non-social housing changes are required to comply with various legislative activities. and regulatory requirements and the Group applied a rent increase of 2.7% for the majority of tenancies in The gross rent arrears balance at 31 March 2025 was 2024/25. A degree of judgement is involved in £1.5M, a decrease of £700k (30%) on the prior year. determining the provision against rent arrears, particularly in light of the cost-of-living crisis. The bad debt provision is £785K and is comprised of 95% of former tenant arrears and a proportion of current Gross rent arrears amounted to £2.2M at 31 March tenant arrears based on the level of debt outstanding. 2024, a decrease of £900K (30%) on the prior year, albeit this can vary depending on the timing of the rent Our audit work in this area included the performance of debit and subsequent income. A provision of £789K was proof in total tests to assess whether rental and other made against the year-end arrears balance. income has been recognised correctly. This supplemented sample testing of the rent uplift applied to rent accounts in the financial year. We also tested the recognition of non-rental income by vouching a sample of transactions to supporting documentation.

Our work in this area was concluded satisfactorily.

Group Audit Management Letter

6

KEY AUDIT ISSUES

Audit Issue per Audit Plan Overview Audit Procedures and Results
2. Revenue and Debtors (continued)
Wirral Partnership Homes (Developments) Limited
(Significant audit risk)
Wirral Partnership Homes (Developments) Limited
operates as a development company for the Group and
its income consists of expenditure recharged to
Magenta Living with a 5% uplift.		 Turnover: £13.3M (2024: £3.8M)
Turnover is comprised of expenditure recharged to
Magenta Living with a 5% uplift.
As part of the audit work we tested a sample of
development invoices and confirmed the invoices had
been recharged to Magenta Living with a 5% uplift.
We also performed a proof in total calculation to confirm
total income was in line with the level of expenditure for
the year.
We reviewed a sample of sales invoices raised either
side of the year-end to confirm invoices were
recognised in the correct period.
Our work in this area was concluded satisfactorily.
Bamboo Estates LLP
(Significant audit risk)
Bamboo Estates LLP is a private lettings partnership
between Magenta Living and Wirral Partnership Homes
(Developments) Limited. Magenta Living leases social
housing units to Bamboo on a five-year lease, during
this time Bamboo lets the units in the private rent market
and achieves a rental uplift of on average £60 per week.		 Turnover: £935K (2024: £864K)
Turnover is comprised of rental income on the
properties leased from Magenta Living.
The gross rent arrears balance at 31 March 2025 was
£9K and the bad debt provision was £6K.
As part of the audit work we performed a proof in total
test on the rental income for the year and tested a
sample of properties to confirm the rent charged is in
line with the terms of the lease.
Our work in this area was concluded satisfactorily.

Group Audit Management Letter

7

KEY AUDIT ISSUES

Audit Issue per Audit Plan Overview

Audit Procedures and Results

3. Assessment of Fraud Risk (Group)

ISA 240 “The Auditor’s responsibility to consider fraud” requires us to consider the risk of fraud and the impact that this has on our audit approach. In addition, ISA 700 “Forming an Opinion and Reporting on Financial Statements”, requires auditors to explain in the auditor’s report to what extent the audit was considered capable of detecting irregularities, including fraud. There is a presumed significant risk of fraud in two areas:

The risk of fraud was discussed with management during the planning meeting on 24 January 2025. Instances of actual fraud have been identified in the year to date, with the highest value (Trivial) being tenancy fraud.

Revenue Recognition

(Rental income – Other audit risk) (Other income – Significant audit risk)

Material misstatements due to fraudulent reporting often result from an overstatement of revenues, for example through premature revenue recognition or recording fictitious revenues. The auditor therefore presumes that there are risks of fraud in revenue recognition and considers which types of revenue may give rise to fraud risks.

The main income stream for the Group is rental income. The processing of rent charges is highly automated and rent changes are restricted. We therefore have initially assessed the risk of fraud in the recognition of rental income as low and expect to rebut the assumption that this area is a significant risk.

Recognition of income from other sources is less automated and is judged to be a significant risk.

Management Override (Significant audit risk) Under ISA 240 there is a presumed risk of management override of the system of internal controls. Material misstatements can arise from management overriding the controls which are in place or by manipulating the results to achieve targets and the expectations of the stakeholders.

Our audit is designed to provide reasonable assurance that the accounts are free from material misstatement whether caused by fraud or error. In particular, we reviewed revenue recognition and management control override.

As part of the audit planning we met with management to discuss fraud related risks and the risk of material misstatement in the financial statements and to understand the legal and regulatory framework applicable to the Group.

During the audit fieldwork, we assessed the controls over the maintenance of supplier details and changes to bank account details.

We rebutted the assumption that the recognition of rental income is a significant risk as expected.

We also tested a sample of income from rents, services charges and other material sources of income, including property sales, performed analytical review on the material income streams and tested the cut off on the rent debit in Magenta Living and Bamboo Estates LLP.

As part of our year-end audit work we used data analytics in our review of manual journals posted in the year and reviewed material year end journals. Our audit work did not identify any issues in this area.

Our audit work identified one trade debtor balance in respect of rented units managed by a third party; the balance was overstated due to an incorrect accounting treatment applied, as sales invoices were not being cleared down effectively within the Trade debtor’s ledger. This is because the customer/supplier transferred net payments to Magenta against these sales invoices, causing an overstatement of debtors (£331K).

Group Audit Management Letter

8

KEY AUDIT ISSUES

Audit Issue per Audit Plan Overview

Audit Issue per Audit Plan Overview Audit Procedures and Results 3. Assessment of Fraud Risk (Group) continued Our audit identified that corporate repairs income was incorrectly recognised as ‘Other income’ due to a mapping issue. In substance, this related to expenditure on internal repairs (schedule of rates) and was incorrectly netted against repairs costs. The misclassification has not been corrected in the financial statements, resulting in an overstatement of income and understatement of repairs expenditure (£360K). Our review of key estimates and judgements in the financial statements indicated that they had been made on a reasonable basis and showed no evidence of management bias.

Group Audit Management Letter

11

KEY AUDIT ISSUES

Audit Issue per Audit Plan Overview

4. Defined benefit pension scheme

Magenta Living

(Significant audit risk)

The Group participates in two defined benefit pension schemes, as noted below:

The Social Housing Pension Scheme

The Social Housing Pension Scheme (SHPS) is a multiemployer, defined benefit scheme. A deficit of £342K in respect of the scheme was shown on the Statement of Financial Position at 31 March 2024.

Merseyside Pension Fund

The Merseyside Pension Fund is a local government defined benefit pension scheme. An asset of £7.0M in respect of the scheme was shown on the Statement of Financial Position at 31 March 2024.

The actuaries of the schemes will value the pension liabilities for Section 28 of FRS 102 purposes, and these will be included in the financial statements at 31 March 2025.

Audit Procedures and Results

Social Housing Pension Scheme (SHPS) The present value of the defined benefit obligation and the fair value of the plan assets at 31 March 2025 resulted in a deficit of £189K recognised in the Statement of Financial Position for SHPS and a surplus of £25.9M for the LGPS which was capped at £zero.

As part of the audit work we have:

Merseyside Pension Fund

At 31 March 2025 the fair value of the plan assets was greater than the present value of the funded liabilities resulting in a net asset of £2.9M. FRS 102 permits the recognition of pension assets to the extent that the surplus is recoverable, either through reduced contributions in the future, or through refunds from the plan.

The scheme’s actuary has provided a calculation of the economic benefit arising to the Group from reduced contributions in the future, this amounts to £2.9M. Accordingly, an adjustment has been made to the financial statements to restrict the surplus, reducing the pension asset by £22.984M, and reducing actuarial gains by the same amount.

The assumptions used by the actuary around mortality rates fall outside the recommended range by our auditor expert. We have considered the impact of amending these assumptions and it wouldn’t have a material impact on the pension asset and therefore no adjustment proposed. Our work in this area was otherwise concluded satisfactorily.

Group Audit Management Letter

11

KEY AUDIT ISSUES

Audit Issue per Audit Plan Overview

Audit Procedures and Results

5. Key Judgements and Estimates

Group

(Links to other key audit areas which include both ‘significant’ and ‘other’ audit risks.)

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the year-end and the amounts reported for revenues and expenses during the year. Given its nature, this area is a key audit focus.

ISA 540 “Auditing Accounting Estimates and Related Disclosures” also places additional emphasis on scepticism in the audit process, with its importance increasing when accounting estimates are subject to a greater degree of estimation uncertainty or are affected to a greater degree by complexity, subjectivity, or other inherent risk factors.

Our testing is designed to assess whether the key judgements and estimates have been made appropriately in line with our knowledge of the Group and the industry and are disclosed satisfactorily in the financial statements.

The detail of our audit testing is included across a number of the key audit areas in this section, and included:

We concluded that the above points had been addressed appropriately in our audit work other than where audit findings are noted elsewhere in this report.

Group Audit Management Letter

11

KEY AUDIT ISSUES

Audit Issue per Audit Plan Overview

Audit Procedures and Results

6. Treasury Management and Going Concern

Group

(Other audit risk)

The Group is funded by a £137.4M loan facility with NatWest with four tranches as follows:

Tranche A – 25-year fixed rate term loan £45.0M Tranche B – 15-year fixed rate term loan £30.0M Tranche C – 15-year fixed rate term loan £12.4M Tranche D – 5-year revolving credit facility £50.0M

At 31 March 2024 the balance owed was £87.4M with undrawn facilities of £46M (£4m drawdown occurred in 23/4).

The loan agreements set out a number of financial covenants, including interest cover, gearing and asset cover, which must be met. Discussions with the Chief Financial Officer and the Head of Financial Accounting at the planning meeting indicated that there would be less headroom than initially expected with loan covenant compliance. As part of our final audit work we will review the future viability of the Group and its ability to make the required loan repayments and meet its loan covenants for the foreseeable future. As discussed at the planning meeting, there has been a £2m Drawdown in December 2024, and Magenta are currently in talks with the lender to adjust their covenants from EBITDA MRI to EBITDA only.

Treasury Management

At 31 March 2025 the Group had an outstanding loan balance of £96.4M due to NatWest with undrawn facilities of £41M.

As part of the audit work we have:

Our work in this area was concluded satisfactorily.

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KEY AUDIT ISSUES

Audit Issue per Audit Plan Overview

Audit Procedures and Results

6. Treasury Management and Going Concern (continued) (Other audit risk)

Going Concern

The business plan is crucial in the ongoing management of the Group and each subsidiary and in demonstrating the viability of the organisation, particularly given the challenges of the cost-of-living crisis and current macro-economic climate. The prospect of costs rising in excess of increases in rental income creates a risk of surpluses reducing in the short to medium term.

The Regulator requires that stress testing is undertaken on the business plan as part of its Regulatory Framework. We will review the latest version of the plan in detail as part of our audit work, as noted below.

The current economic and political climate is challenging. Under the going concern assumption, an entity is viewed as continuing in business for the foreseeable future. Accounting requirements indicate that any material uncertainties about the appropriateness of the going concern assumption are disclosed adequately in the financial statements.

.

Magenta Living

The Group accounts show a surplus before actuarial gains of £6.2M for the year compared to surplus of £2.3M in 2024.

The Group accounts have been prepared on the going concern basis and relevant disclosure has been presented in the Strategic Report and in the Accounting Policies.

As part of the audit work we have reviewed the Group’s 2025/26 budget and the assumptions and expected results of longer-term budgets, business plans and cash flow forecasts in line with the requirements of ISA 570.

An updated Business Plan was approved by Board in May 2025. The Group has performed stress testing on the business plan with planned mitigations to manage adverse outcomes.

Wirral Partnership Homes (Developments) Limited Wirral Partnership Homes (Developments) Limited made an operating profit of £88K in 2024/25 and had net assets of £1.5M at 31 March 2025.

Hilbre Projects LLP

Hilbre Projects LLP ceased trading on 31 March 2022 and there is no intention to recommence trading therefore the financial statements have been prepared on a basis other than going concern. Relevant disclosure has been included in the going concern section of the financial statements.

Bamboo Estates LLP

The 2024/25 budget for Bamboo forecasts a profit of £502K in 2024/25, but achieved actual profit of £457K, an decrease of £3K on the actual results for 2023/24.

No issues relating to going concern were identified during the audit and the year-end results met with loan covenants.

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KEY AUDIT ISSUES

Audit Issue per Audit Plan Overview

Audit Procedures and Results

6. Treasury Management and Going Concern (continued)

Regulatory Framework

A statement of compliance with the Regulatory Framework is required in the financial statements of Magenta Living. Any non-compliance identified since the previous report should be explained. The Association has a G1 V2 grading from the Regulator, which is the same grading as two thirds of RP’s nationally. Discussions have been held with the regulator to ensure no major issues that haven’t been relayed to Magenta are prevalent.

Regulatory Framework

The statement of compliance with the Governance and Viability Standard meets the required criteria, as set out in the Accounting Direction. The Board is required to undertake an annual assessment of compliance with the standard and make an explicit statement in the financial statements in respect of current compliance or non-compliance. The Report of the Board of Directors contains the required disclosure and this disclosure is consistent with the assessment paper approved by Board.

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OVERVIEW OF FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

2025
£’000		 2024
£’000
Turnover 82,657 77,224 >> Turnover increased by £5.4M (7%). The main
movements were:
•
Increase in social housing lettings
income (£5.7M) due to annual rent and
service charges, specifically inclusion
of further services charged to tenants
rather than absorbed byMagenta.
Cost of sales (1,501) (2,204) >> Cost of sales decreased by £703K due to an
decrease in the volume of first tranche sales.
Operating expenditure (74,503) (72,285) »> Operating expenditure increased by £2.2M
(3%), due to an increase in social housing
lettings expenditure and non-social housing
lettings costs related to Bamboo.
Gain
on
disposal
of
housing properties		 1,463 1,558 »> The gain on disposal of fixed assets has been
generated from the sales of 12 Right to Buy
properties and, 10 Right to Acquire property
sales
Gain
on
revaluation
of
investmentproperties		 993 874 »> The market rent properties let via Bamboo are
classified as investmentproperties.
Net interest and financing
costs		 (2,883) (2,753) »> The reduction in net interest and financing
costs is due to net interest receivable on the
LGPS. Loan interest payable was consistent
with theprioryear.
Taxation 0 (49) »> The tax charge in the prior year relates to Wirral
PartnershipHomes(Developments)Limited.
Actuarial gain in respect of
pension schemes		 (3,627) 50 >> The actuarial gain reflects the year end
valuation of the Group’s defined benefit
Pension Schemes.
Total
comprehensive
Income		 2,599 2,415

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OVERVIEW OF FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

2025
£’000		 2024
£’000
Tangible fixed assets –
housing properties		 265,313 252,044 »> Development
works
resulted
in
capital
additions of £13.1M, a further £10.2M was
incurred on replacement components. The
overall increase was offset by the annual
depreciation charge of £10.1M and there was
a reclassification in the period from WIP to
completed of £2.4M being completion of fire
safetyworks from 2023/24.
Other tangible fixed assets 3,642 3,533 >> Annual depreciation charge of £329K was
offset byadditions of £438K.
Intangible fixed assets 965 625 »> Computer software additions of £553K were
offset by the annual amortisation charge of
£110K.
Investment properties 20,756 16,225 »> Increase of £993K reflects the gain on
revaluation of the market rent properties and
£3.5M additions.
Current assets 22,333 17,715 >> Overall increase of £4.6M due to a increase in
properties held for sale of £875K, primarily in
relation to completed units at Three Sails
Point.
Trade debtors increased significantly via
reclassification of debit balances positioned on
the Trade creditors report c£4.3M
Cash and cash equivalents also increased by
£217K as a result of capital expenditure offset
by cash generated from operating activities
and social housing grant received.
Creditors: amounts falling
due within one year		 (23,527) (16,926) »> Overall increase of £6.6M driven by an
increase in accruals and deferred income of
£5.8M. This was enhanced further by a
increase in Rent and Service charge received
in advance at £2.5M(£400K increase).
Creditors: amounts falling
due after more than one
year		 (137,085) (127,480) »> Increase of £9.6M driven by loan drawdown of
£4M in the period, an adjustment from
Creditors < 1 year in respect of long term
deferred income and grant receipts totalling
£3.3M.
Provisions
(Including
pension)		 2,548 6,610 »> The Group has recognised an asset of £2.9M
in respect of the Merseyside Pension Fund,

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OVERVIEW OF FINANCIAL STATEMENTS

2025 2024
£’000 £’000
offset by a deficit of £189K on the Social
HousingPension Scheme.
Reserves 151,573 152,346 »> Movement relates to the surplus in 2024/25 &
prior period adjustment for Loan financing
fee’s set out as a Prior period adjustment.

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INDEPENDENCE

Ethics and Independence

In the UK and Ireland, auditors are subject to the ethical requirements of the Financial Reporting Council’s 2019 Revised Ethical Standard for Auditors.

International Standard on Auditing (ISA) 260 – Communication with those Charged with Governance and good practice require us to confirm the following to those charged with governance:

The Group Audit and Risk Committee should take an active role in considering whether the external auditor’s independence might be impaired by the provision of non-audit services.

Non-Audit Services

In addition to our work as the Group’s external auditors, we also provide other services to the Group including loan covenant, Right to Buy and Community Fund certificates.

The fee for the loan covenant compliance, Right to Buy and Community Fund certificates is not considered significant in relation to the total audit fee.

Therefore we consider that appropriate safeguards are in place and, in our opinion, the provision of these additional services does not prejudice our independence and objectivity as the Group’s external auditors.

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INDEPENDENCE

The actual fees, excluding VAT, for non-audit services for 2024/25 are set out below:

Additional service Fee 2024/25
Loan covenant compliance certificate £900
Right to Buy certificate £900
Community Fund certificate £900
ESG target certification £900
Total £3,600

Independence Declaration

We confirm that:

Audit Fees

We communicated an agreed audit fee of between £58,000 to £65,000 to reflect the challenges that the system change would have on the audit process. In quickly became apparent that additional fees would be needed, and we have agreed the total fee, based on additional time costs as c£95,000.

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QUALITATIVE ASPECTS OF ACCOUNTING PRACTICES AND FINANCIAL REPORTING

Accounting Policies

FRS 102 requires that entities should review their accounting policies regularly to ensure that they are appropriate to its particular circumstances for the purposes of giving a true and fair view. The Group’s Audit and Risk Committee plays a key role in this process.

We have reviewed the Group’s accounting policies and key judgement areas as stated in the financial statements in detail and confirm that we judge them to be appropriate to provide relevant, reliable, comparable and understandable information.

Accounting Estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the year-end and the amounts reported for revenues and expenses during the year. Given its nature, and the uncertainty regarding the economic environment, this area is a key audit focus.

ISA 540 “Auditing Accounting Estimates and Related Disclosures” also places additional emphasis on scepticism in the audit process, with its importance increasing when accounting estimates are subject to a greater degree of estimation uncertainty or are affected to a greater degree by complexity, subjectivity, or other inherent risk factors.

Key accounting estimates and judgements in the financial statements include:

Magenta Living

During 2024/25 a revision to the Useful Economic Lives of certain depreciating assets has been implemented.

We confirm that these estimates have been made appropriately in line with our knowledge of the Group and the industry and are disclosed satisfactorily in the financial statements.

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QUALITATIVE ASPECTS OF ACCOUNTING PRACTICES AND FINANCIAL REPORTING

There are no significant judgements or estimates in the financial statements of Wirral Partnership Homes (Developments) Limited, Hilbre Projects LLP and Bamboo Estates LLP.

Financial Statement Disclosures

We confirm that we judge the disclosures throughout the financial statements to be neutral, consistent and provide sufficient clarity to the user.

Significant Matters Arising from the Audit

The change of accounting system in the period was discussed with management from the initial planning meeting and in anticipation of issues, including the chart of accounts mapping, were discussed in detail.

Management have remained open and transparent about the issues stemming from the adoption of the new accounting system which caused significant delays on audit delivery. Regular contact was maintained with the Chief Finance Officer and the Chair of the Audit Committee, to ensure transparency and communication throughout the audit.

Significant Difficulties Encountered During the Audit

There were no other significant difficulties encountered during the audit, apart from delays which were discussed ahead of time.

Timing of Transactions

Our audit work confirmed that material transactions were recorded in the correct accounting periods. Accruals and prepayments were made for material items.

Going Concern

The Group financial statements have been prepared on a going concern basis. We have evaluated your assessment of the Group’s ability to continue as a going concern and the disclosure made in the accounting policies and we confirm that this assumption is appropriate based on our work.

Group Strategic Report and Report of the Board of Directors

We have reviewed the Group Strategic Report and Report of the Board of Directors and subsidiary Directors’/Members’ Reports. We confirmed that there is no material inconsistency between the reports and the respective financial statements.

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MANAGEMENT REPRESENTATION LETTER AND AUDIT OPINION

Management Representation Letter

In accordance with ISA 580, we obtain written representation from management that they acknowledge their responsibility for preparing the accounts and have made all information available to us.

The management representation letters, as appropriate across the Group, were signed by the Board at the same time as the financial statements.

The letter for Magenta Living includes confirmations from the Board regarding the valuation of the Merseyside Pension Fund, and investment properties.

There are no other specific matters on which we have requested Board representation to support the conclusions and evidence provided for our audit opinion.

Audit Opinion

We provide an unqualified audit opinion on the financial statements for the Group and its subsidiaries for the year ended 31 March 2025.

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AUDIT ADJUSTMENTS

Materiality

Our audit work is based upon an assessment of materiality to ensure there is no material misstatement contained in the financial statements. In assessing materiality we take into account both the materiality of the class to which the balance belongs and the overall impact of the balance on the income and expenditure account and balance sheet.

ISA 260 requires us to report to management on all uncorrected misstatements identified during the audit, and to include in this report how we have calculated materiality, and any misstatements identified during the audit which have been corrected.

Materiality may be revised throughout the course of the audit, where we become aware of information during the audit that would have resulted in a different determination of materiality at the outset.

We are not required to report on corrected or uncorrected misstatements we believe are clearly trivial.

Our assessment of materiality was based on the first draft accounts received prior to the audit and calculated as shown in the table below. There were no adjustments identified during the audit which impacted our initial assessment. Triviality is the value above which we report errors to you.

A summary of the final assessment of materiality is as follows.

Entity Method of
calculation %		 Materiality
£
Triviality
£
Magenta Living
(Group)		 1.75% of
turnover		 1,446,000 72,000
Magenta Living
(Parent)		 1.75% of
turnover		 1,437,000 72,000
Wirral Partnership
Homes (Developments)
Limited		 2% of
turnover		 266,000 13,000
Hilbre Projects LLP 2% of
net assets		 1,900 100
Bamboo Estates LLP 2% of
turnover		 19,000 1,000

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AUDIT ADJUSTMENTS

Corrected Misstatements

Magenta Living

The following adjustments were identified, by management, which resulted in a reduction to total comprehensive income of £Nil

Adjustment Impact on surplus
£’000
Total comprehensive income per draft financial
statements version 1		 2,599
Client adjustment £Nil
Total comprehensive income per final financial
statements		 2,599

In addition to the above some reclassification and presentational adjustments were made to the financial statements over the course of the audit.

These adjustments were agreed with management and had no effect on the reported surplus. They included:

Hilbre Projects LLP

There were no non-trivial adjustments to the financial statements of Wirral Partnership Homes (Developments) Limited and Bamboo Estates LLP.

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AUDIT ADJUSTMENTS

Uncorrected Misstatements

Magenta Living

The following uncorrected misstatement was identified, and agreed with management, which resulted in an overstatement of the reported surplus for the year of £135K:

Adjustment Under/(over)
statement of
surplus £’000
Understatement of investment properties due to a
typographical error within the external valuer’s report on
investment properties. This error resulted in an unadjusted
misstatement of £135K, leading to an understatement of
fixed assets.		 (135)

In addition to the above the following uncorrected misstatements which had no impact on the reported surplus for the year were identified:

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AUDIT ADJUSTMENTS

No adjustment has been made to the financial statement to correct in respect of the above misstatements as the amounts are not considered to be material, individually or in aggregate.

There are no other uncorrected misstatements identified as a result of our audit work in the financial statements that are not of a trivial nature to the results of the Group or individual group members.

Draft Group Audit Management Letter

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ACCOUNTING AND INTERNAL CONTROL SYSTEMS

ISA 265 requires that we report to those charged with governance any significant deficiencies in internal control that we identify in the course of our audit work. Significant deficiencies are those deficiencies that we have identified during the audit and concluded are of sufficient importance to merit being communicated to those charged with governance.

The purpose of the audit was for the auditor to express an opinion on the financial statements. The audit considered internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control.

Follow up on findings from 2024

In last year’s management letter we reported that our audit work did not identify any significant deficiencies in internal controls.

In respect of financial year 24/25, the following internal control deficiencies were noted:

Magenta Living

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ACCOUNTING AND INTERNAL CONTROL SYSTEMS

accurate. Adjusting for this would have no material impact on Hilbre or Magenta Living Financial Statements.

IT General Control Environment

International Standard on Auditing (ISA) 315 – Identifying and Assessing the Risks of Material Misstatement requires auditors to identify the IT applications and other aspects of the IT environment (databases, operating system and network) that are subject to risks arising from the use of IT, as well as to gain an understanding of information processing activities and identify associated risks.

With assistance from management we have undertaken a review of the IT arrangements for the Group. We have no matters to report in respect of this work.

Audit Management Letter

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UPDATE ON REVISION TO FRS102 AND HOUSING SORP

On 27 March 2024 The Financial Reporting Council published Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland – Periodic review 2024 (FRS 102). The effective date of these amendments is 1 January 2026 with early adoption permitted.

The two significant changes see a new five-step model for revenue recognition more closely aligned with IFRS 15 Revenue from Contracts with Customers (IFRS 15) and alignment with IFRS 16 Leases (IFRS 16) with certain practical expedients. It is anticipated that alongside this will be a re-write of the Housing SORP which might also include some updated guidance on capitalisation issues in the sector. Our current understanding is that while the proposed changes will have an impact it is unlikely to be significant.

We look forward to future discussions in considering the impact through the transition for the Group.

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One Express, aCe 1 George Leigh Street, Yep Manchester M4 5DL e: manchester@beeverstruthers.co.uk eS www.beeverstruthers.co.uk

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