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← Walsall Housing Group Limited

2025-03-31-accounts

Walsall Housing Group Limited Financial Statements for the year ended 31 March 2025

Company Registration Number: 04015633 Registered office: Registered Provider Number: L4389 100 Hatherton Street, Registered Charity Number: 1108779 Walsall. WS1 1AB

Contents

Board, Executive Directors and Advisors.............................................................. 3 Chief Executive Forward ......................................................................................... 4 Strategic Report ....................................................................................................... 5 Performance Reporting ......................................................................................... 20 Value for Money Statement ................................................................................... 22 Principal Risks and Uncertainties ........................................................................ 34 Sustainability, Net Zero and ESG (Environmental, Social and Governance) .... 41 Financial Review .................................................................................................... 44 The Report of the Board ........................................................................................ 50 Independent auditor’s report ................................................................................ 59 Consolidated Statement of Total Comprehensive Income ................................ 63 Company Statement of Changes in Reserves .................................................... 64 Consolidated Statement of Financial Position .................................................... 65 Consolidated Statement of Cash Flows for the year end 31 March 2025.......... 66 Notes to the Financial Statements ....................................................................... 67

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Board, Executive Directors and Advisors

Board

Appointed Left

Gary Moreton (Chair) Gary Fulford (Chair of Admin Coterminous Board) Guy Weston (Chair of the Audit and Assurance Committee) Akshay Parikh Ian Shapiro Craig Varian 01/11/2024 Natalia Hill Katie Kershaw (Chair of Commercial Coterminous Board) Deborah Walthorne Parminder Kaur Nicola Pease 01/02/2025 Paul O’Driscoll 27/09/2024 Daren Fradgley 06/02/2025 Elisabeth Downes 31/12/2024

Company Secretary

Dawn Hendon

Executive Directors

Gary Fulford Group Chief Executive Sangita Surridge Corporate Director of Finance Dawn Hendon Corporate Director of Governance, Compliance and Communications Lisa Wallis Corporate Director of People and Culture Robert Gilham Corporate Director of Strategy, Assets and Transformation Fay Shanahan Corporate Director of Operations and IT Rebecca Bennett Casserly Corporate Director of Development

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Statutory Auditor Internal Auditor Principal Banker Beever and Struthers KPMG LLP Lloyds Bank plc The Colmore Building St Nicholas House The Bridge 20 Colmore Circus Queensway 31 Park Row Walsall Birmingham B4 6AT Nottingham WS1 1LU NG1 6FQ

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Chief Executive Forward ~~ee~~ I’m delighted to introduce our 2025 Annual Report and Accounts and to report a strong set of results in what continues to be a challenging operating environment.

Throughout the year, we have remained focused on delivering for our customers and communities while navigating the impact of high inflation and increasing expectations. Despite these pressures, we continued to invest in our homes and services, made significant progress on our strategic objectives, and strengthened the foundations for our future through the launch of Our 2030 Plan.

One of the standout moments of the year was achieving a G1/V1/C1 regulatory judgement. This recognition reflects the dedication and hard work of colleagues across the organisation. Of particular note was the praise we received for our customer involvement and governance, which demonstrates the strength of our values-led approach.

It is also really pleasing to report an improvement across many of our Tenant Satisfaction Measures (TSMs), including a significant increase in overall customer satisfaction from 70.3% to 77.2%. This is a reflection of our commitment to listening, learning, and acting on what matters most to our customers.

At whg, we remain committed to the success of our people and our places. We delivered 506 new homes this year, including a strong proportion for social rent, alongside 104 homes for shared ownership. We have a further 423 homes in the pipeline for delivery in future years. Demand for all of our homes remains high, with the number of vacant homes at year-end at its lowest in recent years. Our level of evictions has significantly reduced over the last seven years which shows our commitment to tenancy sustainability, keeping our customers in their homes whilst managing our void costs. We finished the year with a rent arrears position of 2.23% which demonstrates our commitment to helping our customers manage their rent payments. We also continued to invest in our existing homes, increasing our total investment by £5.1m, and ending the year with 67% of our homes now at EPC rating C or above.

We know there is more to do. Over the past year, we’ve made significant investments to improve the customer experience, and it’s encouraging to see satisfaction in this area rise from 73.5% to 79.6%.

Financially, I’m delighted to report robust results. Our operating surplus was £38.8m, with an operating margin of 27%, and our EBITDA MRI interest cover stood at a healthy 220%. We closed the year with £200m in undrawn facilities and £30.3m in cash reserves, providing us with a strong platform for future investment and resilience. Our financial strength was further evidenced by the maintenance of our A2 stable credit rating by Moody’s, reinforcing investor confidence in our strategy and financial management.

This year also marked the launch of Our 2030 Plan, and conclusion of our first year towards it, which sets out six bold transformational programmes that will shape our organisation over the next five years. These programmes – covering data, services, social justice, sustainability, placemaking, and the future of work – are already driving innovation and change across whg.

While many organisations in our sector are scaling back development, we remain committed to growth. We believe that we can and should continue to build and regenerate homes and places that people are proud to live in. We are working with partners to unlock further opportunities across the Midlands.

As we look ahead, I remain confident in our ability to deliver for our customers and communities. That confidence comes from the incredible people who make up team whg. I would like to thank every colleague for their hard work, dedication, and continued commitment to our purpose.

Gary Fulford

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Group Chief Executive

Strategic Report

Principal Activities

The Group is a not-for-profit, social housing business whose principal activities include the development and management of affordable housing across the Midlands and investing in our local communities. Services include shared ownership homes and the development of homes for rent and outright sale. During 2024/25 the Group continued to expand outside of Walsall and owns and manages homes in 21 local authorities in the Midlands. The Group, as of 31 March 2025, owns and/or manages 22,881 homes. The Company, its subsidiaries and its joint venture are shown in the diagram below for the year ended 31 March 2025.

Walsall Housing Group Limited (‘whg’, ‘the Company’, ‘the Group’): This is the registered provider of the Group that provides homes for rent and maintenance services. It also owns the newly developed homes for rent and shared ownership and borrows from banks and whg Treasury PLC to fund its development programme.

whg Treasury PLC: This company was set up to issue a public bond to raise funds for investment in our development programme via Walsall Housing Group Limited.

whg Developments Ltd: This company carries out design and build services for any land-led sites. This helps to deliver efficiencies within professional fees incurred for these sites and therefore contributes towards the ongoing value for money drive.

whg Trading Company Ltd: This company holds our non-housing related commercial activity and generates profits to help subsidise our affordable homes new development programme.

Anthem Homes Ltd: This company invests in joint ventures to build homes for outright sale. Profits generated from this activity are used to help subsidise our affordable homes new development programme.

Anthem Lovell LLP: This is one of our outright sales joint ventures which Anthem Homes owns a 50% investment in with Lovell owning the other 50%.

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Cricket Close LLP: This is another partnership which Anthem Homes holds in conjunction with whg Trading. It owns land which may be developed or sold in the future. Homes for the West Midlands LLP: This joint venture aim to promote the development of affordable homes, which whg Trading Limited owns a 20% investment in with 4 other local registered providers all owing an equal share.

The Woodlands Management (Harrowby) Company Ltd: This company’s principal activity is residential property management.

Our mission

Dedicated to the success of our people and places.

Our ambition

We will provide safe and secure homes and deliver high-quality services. Our communities will be empowered to thrive and we will always do the best for our customers.

Our values

Our culture is built on our strong values, with diversity, inclusivity and support to our customers at the heart of our work. Our values set out a clear expectation of ‘how we do things around here’. They are our core beliefs which inform our decision-making and help shape our organisation.

To deliver our ambitions we need to be a strong business. We have seven foundations which will underpin our work and support us to deliver on our 2030 plan.

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Strong finances and value for money

Ensuring we remain in a strong financial position is vital to ensure all our customers have a safe and secure place to call home. We invest our surplus income back into the business to support our communities, improve our homes and build more affordable housing.

2024/25 Strategic Progress

The 2024/25 financial year was a challenging year for us but despite economic uncertainty, rising costs, changing regulations, and higher customer expectations, we have maintained our strong position. Following a Regulatory Inspection from the Regulator of Social Housing (‘RSH’), we achieved:

We have commenced delivering on our six transformational programmes set out in Our 2030 Plan. These programmes are the key areas of focus for the business for the period up to 2030. Together, they are guiding our response to sector-wide challenges, from addressing the housing crisis to advancing net-zero ambitions. Some key highlights are shown against each programme theme below.

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Precision in planning: Our asset investment system

We started the implementation of our asset investment system, significantly enhancing financial planning and operational efficiency. By consolidating critical data, including EPC ratings, component lifecycles, safety records, and decarbonisation metrics into a single platform, we hold improved insights on our housing stock. This granular asset-level data (such as property-specific maintenance needs) will position us to manage cyclical investment demands proactively, support decarbonisation goals, and deliver long-term value across our portfolio.

Managing risk: A more streamlined approach

We embedded our new risk management software to improve how we manage and track risks. The software has made risk management more transparent and streamlined. It is providing easier access to view and report on risks, ensuring greater accountability across teams. The platform offers valuable insights that support our data-driven decisions and improving our ability to proactively manage risks at the strategic and operational level to assist decision making.

New predicative arrears technology

As part of our commitment to data-driven decision making, our Income Collection Team will use our new arrears management solution that leverages machine learning, data science and behavioural insights to automate and personalise customer engagement. This will enable us to make risk-based interventions delivering the right message at the right time through the most effective communication channel. This technology will lead to a reduction in manual interventions, improved rent collection rates, enhanced customer engagement and increased productivity.

Home Sight: Using data to support investment decisions

We launched our new Home Sight initiative, which incorporates a brief home condition and environmental check into every visit, using predictive analytics to support long-term stock investment decisions and support our Home Maintenance Service more effectively.

Complaint handling: Improving processes

We enhanced our internal processes to identify and address concerns proactively, alongside promoting our accessible complaints service. Through assurance reviews carried out, we are on a journey to increase our focus on transparency and continuous improvement to ensure we can demonstrate robust accountability in resolving issues. Our performance on the TSMs is set out below. ‘Green’ indicates

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where we perform stronger than the sector median and ‘red’ where we have further work to do to improve our performance, particularly with regards to the number of stage 2 complaints received and the level of customer satisfaction with our approach to complaints handling.

Cyber resilience: Safeguarding trust

We continued to strengthen our cyber security controls and defences throughout the year. Key improvements included cyber incident preparedness exercises, enhanced backup and recovery capabilities, and the introduction of defined security requirements and assessments for our supply chain partners. We also upgraded our internal network infrastructure, replacing all hardware to ensure a secure-by-design environment. Improvements to patch management and email security further reduced potential vulnerabilities.

We are working towards achieving Cyber Essentials accreditation, alongside an updated Cyber Incident Response Plan and expanded cyber insurance coverage, reinforcing our ability to manage and respond to emerging cyber threats effectively.

AI adoption: Balancing innovation and responsibility

We recognise both the potential benefits and important considerations that artificial intelligence (AI) presents for our business. To ensure a responsible and strategic approach, we started working with a recognised industry expert to develop an AI Opportunity Roadmap aligned to our organisational priorities. We began to embrace AI in targeted areas, including the proactive management of rent arrears, where early interventions are helping to support customers and improve outcomes.

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Capital Investment in existing homes (Asset Investment Service)

The age of our stock and associated investment cycles, combined with EPC-C ambitions by 2030 and planning for expected forthcoming regulatory requirements requires substantial investment in our homes. This year we significantly increased expenditure by 23% (£5.1m) to meet the long-term cyclical investment demands of our homes portfolio. We have achieved an overall improvement in the percentage of our homes that are EPC-C or above and we have replaced a number of key components to improve the overall quality of our homes.

Homes with EPC rating of: Mar-24 Mar-25 Year-on-year change
Class A 0.2% 0.2% -
Class B 15.3% 19.3%
Class C 39.4% 47.5%
Class D 44.1% 29.8%
Class E 0.8% 2.8%
Class F 0.1% 0.1% -
No / expired EPC 0.0% 0.3%

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Investment and reconfiguration of our responsive repairs service (Home Maintenance Services)

We have maintained our increased level of investment in our repairs service. In 2023/24, investment increased by 18% (£6m) and in 2024/25 it increased again by 8% (£3m). This investment has helped to reduce the level of outstanding repairs to an appropriate level and timeframe as 81.9% of repairs are now completed within timescales (from 63% in 2023/24). We have also improved our customer satisfaction with the service to 79.6% (from 74% in 2023/24).

We restructured our repairs team into geographically divided East and West teams, allowing trades colleagues to deepen their knowledge of localised housing stock, developing expertise in recurring issues specific to each area. This local focus reduced travel times, supporting our sustainability agenda, and enabled technicians to complete more jobs per day. We also separated the Response and Programmed Repairs Teams allowing for more specialised, effective services. The reorganisation facilitated better job allocation, ensuring that the right resources were deployed for the right tasks

This investment and reconfiguration has led to improved results, evidenced below by data from the Regulator’s Tenant Satisfaction Measures (‘TSMs’).

The ‘green’ indicates that we have achieved a stronger position than the latest published sector median for 2023/24 data. Our emergency repairs completed within timescale have achieved upper quartile performance.

We have also prepared for the requirements of Awaab’s Law, due for implementation in October 2025,

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by recruiting additional surveyors and support roles for relevant documentation processes. This will show as increased investment in next year’s accounts.

An improved customer offer: Self-service

We expanded our customer portal to include new services such as reporting damp, mould, and condensation, fly-tipping and anti-social behaviour. This enabled customers to manage more of their home online at a time to suit them. We also launched a dedicated offer for Shared Owners. This included a new Shared Ownership Staircase Calculator, which has helped encourage more shared owners to staircase. £1m in staircasing income was generated during 24/25.

Investment in customer services including increasing resources and protecting training and development time has seen an increase in the number of customer services colleagues saying they are happy in their roles and has contributed to improved customer services measures overall.

Omnichannel: Improving customer contact

Customer Services transformed over the last 12 months with the implementation of a new management structure and enabling technology. The rollout of our new omnichannel tool, 8x8, integrated our customer contact channels and enabled the introduction of new channels including the implementation of video diagnostics to improve accurate diagnosis of repairs. This slashed average call-answer times and cut call abandonment from 43% to 4.6%. The platform is continually evolving and enables us to adapt to the changing needs of our customers. Our call quality, a new measure, is at 90%.

Our communities: Strengthening our neighbourhood presence

We continued to invest in our Community Housing Model, with more customer-facing colleagues working with customers as a visible and accessible part of the community. Our Community Housing Model supported the delivery of high-quality housing services and contributed to increased levels of customer satisfaction with our services. The model takes a strengths-based approach, focused on empowering customers to thrive in our homes.

The areas marked as ‘green’ below show a stronger performance than the sector median and the below median are areas we need to improve on. For satisfaction with communal areas, we have recently reprocured two of our major contracts for grounds maintenance and cleaning which is aimed at improving the quality of service provision. For anti-social behaviour (‘ASB’) metrics we have completed a service review to better understand customer perceptions, awareness of responsibilities (landlord, Council, and Police), and the effectiveness of our reporting processes. We engaged our customer scrutiny group to drive further improvements which we aim to demonstrate in our TSM performance next year.

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Secured £54m in social value gains

Our VFM assessment demonstrates our non-cashable Equity and Ethics gains generated from our social value investments. Activities which produce these gains are our money advice service (including housing benefit advice), health and wellbeing support (H Factor work), jobs, training and employment support.

Economic inclusion: Income, and money advice, and housing benefit advice

Our money advice service successfully achieved financial gains for customers of over £6m. Customers reported high levels of satisfaction with the service, with 93% of people who used the service telling us that they were satisfied with their experience and would use the service again if needed.

Our arrears position remained strong, at 2.23% despite the roll out of Universal Credit continuing. Our commitment not to evict into homelessness remained, with just six evictions due to rent arrears taking place.

Our most recent external audit (Maximising Income Sustaining Tenancies (MIST) HQN) gave us high

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assurance around the quality of our Income collection services, stating that “ the organisation has an outstanding, supportive offer to its residents and communities”.

£268k external funding secured for community projects

Funding has been secured for the ‘H Factor’ work and our work on improving the employment prospects of our customers and others in the community as set out below:

The H Factor: Health, Hope and Happiness

We completed the work set out within our award-winning H Factor strategy, supporting 2,212 customers in the last year to achieve health, hope and happiness. Our Social Justice Strategy was cited as best practice within a number of national publications and best practice reports including:

Work 4: Bridging employment gaps

A key focus of our H Factor strategy was to improve customers’ access to education, training and employment. Our award-winning Work 4 employability programme was created to align with workforce vacancies in key sectors such as health and social care. Working in partnership with the DWP and Walsall College to date the Work 4 programme has supported 214 customers to gain employment, 190 within the health sector and 24 within whg. In addition, the programme has recruited five customers as health apprentices with one customer now working towards a degree in nursing. Work 4 has created £3m of social value and with 53% of those recruited coming from a diverse background, the workforce is becoming more representative of the population it serves.

In the last year we expanded our Work 4 model into other sectors using our connections with the Black Country Chamber of Commerce and our supply chain to identify new commercial partners, creating new pathways to sustainable employment for our customers.

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Named ESG Team of the Year

During the year, we won our first ‘Unlock Net Zero’ award. We were praised for our clear and robust golden thread with regards to our commitment and drive to ESG. We demonstrated that our ESG agenda is championed from the board all the way to our Sustainability and Community Health Champions. Our ESG team reach far and wide, partnering with stakeholders across our communities to bring positive change.

Carbon literacy: Our in-house training

Our carbon literacy training continued at pace and we now have over 176 of our colleagues trained in carbon literacy and over 12% accredited as carbon literate with the Carbon Literacy Project. The training has been instrumental in ensuring everyone has a shared understanding of climate change and how their unique roles can contribute to and accelerate our wider sustainability goals. A report on the training showed confidence to act on climate issues increased significantly, rising from 29% pre-training to 92% post-training.

Dudley Fields: A Net-Zero prototype

We led on the production of the Net Zero Neighbourhood Plan for Dudley Fields, in collaboration with the WMCA and Walsall Council. Dudley Fields is one of seven Net Zero Neighbourhoods being developed across the West Midlands, as part of the Mayor’s plan to cut regional carbon emissions to net zero by 2041. This £8m project will retrofit up to 160 homes with cutting-edge green technology while creating over 50 skilled local jobs.

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Ritterwald Accreditation

We have been awarded the Certified Sustainable Housing Label for the third year in a row RITTERWALD. We have achieved the highest possible rating of ‘Frontrunner’ in the social dimension, and ‘Ambassador’ in both environmental and governance performance. These rankings are a powerful, independent endorsement of the work we’re doing to build a sustainable future for our customers and communities.

Our approach to sustainability is a core principle that runs through everything we do, from how we build and maintain our homes to how we engage our teams and serve our communities. We’re committed to being part of the solution. Whether it’s through building future-ready homes, cutting emissions, or empowering our teams to lead the way, we believe in meaningful, measurable progress

Sustainable Procurement

Our Procurement Strategy includes a main aim to carry out sustainable procurement, aligned with ESG principles. For example, during the year, we re-procured our corporate energy and supply of communal areas energy and now have a 100% green energy supply for all our business needs.

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Our commitment to developing new homes

Despite inflationary pressures in construction and labour markets, our partnerships with developers ensured progress on affordable housing delivery. We have completed on 506 new homes, of which 467 are affordable. We also have 423 new homes in the pipeline for delivery in future years. We have sold 104 shared ownership homes and worked across 22 sites. Our spend on the new development programme to deliver all of this was £48m net of grant in the year and we have contracted/ approved a further £54m so far for future years. Our new development programme up to 2030 aims to deliver at least 2,000 homes (since April 2024).

Lockside: A blueprint for sustainable urban renewal

The completion of our Lockside development (39 this year) in Walsall represented a milestone in our commitment to placemaking. Built on the site of the former Caparo steelworks and Metafin factory, this 324-home canal side community included 72 EPC-A rated homes. The apartments boast a raft of energy efficiency technologies, including a state-of-the-art PV prioritisation distribution system, known as “Solshare.” Additionally, the scheme features a more energy-efficient building fabric than required by current building regulations.

Redefining later living: Two new wellbeing schemes

We opened two new wellbeing schemes at Lockside Pointe and Nightingale House. Both schemes provide very high quality, accessible and energy efficient homes which enable our older customers to live safely and independently.

Both exemplify aspirational social housing that defies common stereotypes surrounding social housing and its residents.

Each have one and two-bedroom apartments for over-55s, complemented by communal gardens and a dedicated Wellbeing Officer.

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Sustaining pipeline growth: A partnership approach

To sustain pipeline growth, we invested £100,000 in the Homes for West Midlands LLP, joining four other associations and the WMCA to unlock parcels of land for affordable housing. We are working together to accelerate delivery of the region’s affordable housing ambitions and identify parcels of land suitable for affordable housing.

Our Statement of Comprehensive Income reflects a £2.6m impairment charge for a distressed site, Hollyhedge. This is a scheme for 71 homes that stalled temporarily due to contractor insolvency. We are pleased to report that the scheme has fully re-mobilised with a new contractor, Lovell, to complete the scheme in line with funding requirements. We have also secured an increased grant on this scheme of £7.3m to help us deliver more social rent homes for our area.

During the year, we have been recognised as a top employer in the Sunday Times Best Places to Work. We are proud of this achievement and our increased engagement scores are the result of our continued investment in our people. Our reduced colleague turnover and sickness absence has contributed towards improving our services.

Gender pay gap and Ethnicity pay gap

Gender split across the organisation remains consistent for a sixth year, with male colleagues making up around 60% of our workforce and female colleagues making up around 40%. We have a mean gender pay gap of 5.6%. This has reduced by 2.4 percentage points compared to last year. We have a median gender pay gap of 13.5%. This has reduced by 1 percentage point since last year.

We hold ethnicity data for around 85% of our colleagues. Global Ethnic Majority (GEM) colleagues make up around 24% of our disclosed ethnicity data, which is roughly the same percentage as last year. We have a mean ethnicity pay gap of 13.8%. This has increased by 0.3 percentage points since last year. We have a median ethnicity pay gap of 7.9%. This has reduced by 0.4 percentage points compared to last year.

Our gender pay gap report explains the actions we have committed to over the next 12 months to further support improved representation of colleagues throughout the organisation, such as reviewing our recruitment practices and learning environments.

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EDI: Narrowing the gaps

Throughout 2024/25, we hosted several diversity and inclusion themed Lunch and Learn sessions, delivered by Inclusive Employers. There were 171 colleague attendances at Lunch and Learns across four sessions. These sessions covered a range of topics including intersectionality, Black History Month and Equality Impact Assessments (EIAs).

Colleague development: Building capability

We made significant strides in colleague development this year, focusing on building leadership capabilities and practical skills across all levels. Tailored leadership programmes were introduced for the Group Executive Team, Directors Group and Leadership Team, encouraging collaboration and fostering a high-performance culture. The launch of our “Managing for Success” training equipped managers with core skills and strategies to lead through change, aligning with our 2030 Plan.

Practical learning was prioritised through initiatives like the Mock Employment Tribunal, which strengthened conflict-resolution skills. We also hired a Digital Learning Designer to create flexible, customised e-learning modules in-house, enhancing accessibility to training. We revamped our Performance Management Framework (PMF), rolling it out digitally in April 2024 after a successful 2023 launch. The updated PMF has been well-received, with colleagues appreciating structured conversations around performance and career growth. By March 2025, compliance with the PMF reached 91.60%, surpassing the 90% target.

Employer value proposition: Attracting tomorrow’s workforce

In January 2025, we introduced our Values Awards, digital accolades hosted on our Boost platform, which enabled managers to celebrate colleagues who exemplify our values and behaviours. Complementing this, our popular eCards system continued to thrive, allowing peers and managers to send non-monetary, values-aligned recognition, shared visibly across the organisation. Nearly 500 eCards were issued in 2024/25, highlighting everyday contributions to our work. We also remained a Living Wage Employer, committing to fair salaries for our lowest-paid colleagues. We ran our second Colleague Engagement Survey during the year. The results from the survey were positive for the second year in a row, with improvements achieved against every metric.

Involving colleagues: Engagement activity

We launched our new colleague engagement group, “Colleague Connect”. This is part of the wider Colleague Voice and has enabled engaged or interested colleagues to be involved in consultation exercises for new initiatives, policy and training development and other personal development opportunities. 58 colleagues have joined Colleague Connect and contributed to activities undertaken. The availability of a diverse group of colleagues to consult on initiatives has been extremely useful and powerful and provided additional confidence that the programmes delivered are supporting the needs of our people.

We hosted several engagement and celebration events for colleagues throughout the year. The “Big Week In” generated over 1,000 colleague engagements, with nearly 150 taking part in the sports day activities linked to Our 2030 Plan theme “On Track to 2030.” Over a quarter of colleagues accessed the health and wellbeing support available in our reward and recognition platform (Boost) and the site has supplemented the activities we delivered throughout the year. We also brief 300 trade colleagues in person three times a year through our Business Brief sessions.

Transformational programmes- Looking ahead

This year we laid the groundwork for our six transformational programmes, an integral part of our work over the next five years. In year two, we are setting out our roadmaps for ensuring these six programmes

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are a success, guiding decision-making and ensuring resources are used effectively. Supported by strong Board oversight, rigorous risk management and a clear line of sight on both financial resilience and customer outcomes, we stand ready to meet the next chapter of challenges.

Performance Reporting

We set and monitor our own internal key performance indicators as well as the Regulator’s TSMs to ensure we maintain our focus on the areas relevant to our business and Our 2030 Plan. The table below is our complete suite of indicators. The performance is RAG rated, ‘red’ being outside of target and ‘green’ being within target.

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Performance Measures Actu•1 Average days to complete a repaii % ol custorners satisfied wth Lqndbrd's approach to handling onti- social behaviour ITransactsonal survey) % ol customers satisfied wrth ndbrd's approach to handling aThti- social behaviour IPerceptyon surveyl 28 14 <35 Performance has Improved and remains abtsve target for responsive repairs.

61% FolovirvJ a customer scnjb'ny exercise. an ASB action Flan has been created. Thfough this acb.on ￿an a noise nuisance policy will be launched in Summer 2025 as noise nuisance is a cOmMG￿ factor of ASB. 61% Decent Homes Standard compliance 99.99% There were 16 homes non<0m￿lant at the eThJ of 2024125. AJI homes are Inc￿¢￿ JTh th¢ 2025126 programm¢. of custorn¢r5 Satisfied th¢ir Lqndbrd provides a horne that is w maintained 72% 77% 7A Perfomwnce has improved as a of our investment in Ihe repairs service. % ol customers satisfied their ndbrd provides a horne that is sale 79% Perf0m￿nCe has improved as a of our investment in the repairs service. TNS is slKJhly below tsrget trArt has improved in 2024125. Dlssatssfaetion themes from customers relate lo ASB and delays wth repairs. An action plan is in pLgce 78% to improve ASB prtxesses. Repairs fesource has been styrt between response and programmed lo meet demaTrJ and we are recrU￿'ng additional trades coleagues Into tr repairs service. This perfomionce is based on sutvey re$￿ts from October 2024. All engagement 90% xor¢5 improved compared to the December 2023 survey. We received Sunday Times Best PLfjces to Work recognition in 2024 and 2025. 4% <4.5% This has Improved and is now wilhin tsrget. 11% j <16% This has improved as a res￿ ol our perfomance management framework. 10 olthe a¢¢idents report￿ in 2024125 w¢r¢ RIDDOR. Reported near misses have reduced in 2024125. This is coThsidered low for organisats'on of ￿j.5 size. 467 1 444 87 Shared (knership and 380 rented home5. 85 59 Shored ¢kn¢rship •ThJ 163 r¢ntea homes. 115 44 103 Sa￿S Fais rerfjU￿h8se and sale. ol cuslorner5 Satisfied wth rent a5 VFM 74% At least 90% 01 our eolkagues wll recomrnend %thg as a great pbce lo work 7P Contracted hours lost to sKkness Annual Col￿agUe r&ling turnover Number of ¢oll•ague accidents 14% 52 Number ol colleague near misses New affordable home5 cornpleted Horns stsrted ¢n sil¢ 502 Shared ownership sales Qutn'ght sales per 4Mum 43 39 lo partrership with Lovd P•therships wrformonc¢ has r¢rnained strong Support people into new opportunities Generate social vahje to a third of our tumover 2,500 OrigiMI forecast exceeded. £44.6m £5I7m £45.3m Evokwl¢d txt¢moty by HACT. Secure fundirKJ for commmrty investments 554k 2aS.8k E250k Onginal forecast exceeded. Headline social hou5in9 C051 per home £4,455 £5212 <£5.678 Costs h•ve increased but we continue to perfomi bettèr th•n our peers. Current arrears 2.6% 2.23%. <3.15% This has improved for 2024125. Recruitment for additional trades resource into the Void service is currenly emay. Development of the Find a Home system Continues and changes ￿11 increase the efficier￿Y of the Lettiryjs process. Joint meets'ng5 take Flace regulady to W"mise the VoK1 and Leth"ngs teams, acts"wties. £7.Im1 >£4m VFM remains a key focus aThJ we have continued to exceed our torget. Properts"es returned has reduced. This is most likely due to charoes to the Alocatsons PL4icy ITh 2024125_ Void rent loss 1.14% <0.65% Cashable VFM savings £7.6m Property tumover 1,112 <1,404 21

Value for Money Statement

The Regulator of Social Housing (‘RSH’) published the Value for Money (VFM) Standard and the VFM Code of Practice in 2018. Both of these specify what registered providers are required to report in their statutory financial statements to comply with the VFM Standard. Our Board has the responsibility of ensuring that we meet the expectations set out in the VFM Standard.

This VFM statement is divided into the following sections, as set out in the VFM Standard, to articulate how we comply with the Standard:

Section 1 Strategic approach to VFM and how we achieve VFM in meeting our strategic objectives Section 2 Benchmarking to compare how we perform with others Section 3 VFM gains achieved through consideration of alternative delivery structures

~~|~~ Section 1: Strategic approach to VFM

VFM Strategy

Our Board has set our VFM Strategy which identifies how we seek to deliver VFM for our customers and stakeholders. Our 2030 plan sets out our vision and objectives and underpinning the plan is a series of strategies defining how we will deliver our plan. Each strategy has within it a set of defined success measures which will be monitored and reported on in the VFM statement every year.

We have adopted the five Es as the guiding principles for our strategic approach to VFM, which are:

~~|~~ Guiding Principles For us this means minimising our costs while continuing to deliver quality Economy homes and services to our customers. We will seek to stretch our resources as far as possible without ~~.~~ Efficiency compromising quality. fe, Effectiveness We will use our resources to achieve our six transformational programmes and the VFM measures embedded in our VFM Strategy. We will ensure we use our resources to reduce inequality in our a2 Equity communities. We will use our resources with integrity, being open and accountable 61 Ethics about our spending decisions.

We compare ourselves with both the sector and our peers using the Regulator’s Value for Money Metrics Benchmarking Tool: Group Data (consolidated) and using published TSM data.

We also undertake service reviews annually to ensure services are delivering value for money.

Creating value for money allows us to provide as many new homes as possible and increase investment in our existing homes, backed by high quality services. Our approach to VFM is embedded throughout the business both at a strategic level and an operational level across all business streams and is an integral part of our culture with colleagues fully aware of the importance.

Our Board sets the strategic approach to VFM. Our Executive Team implements the VFM strategy and is supported by all colleagues who instil the guiding principles in operational planning and service

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delivery at individual business stream level. Our customers play a key part in informing our VFM work through various channels. Our customer voice strategy sets out a wide range of opportunities for our customers to influence and scrutinise our strategies, policies, and services. During 2024/25 we have completed 71 consultations and engaged with over 3,000 customers. Our approach to consultation is embedded into all customer facing policies and forms part of our governance arrangements for approval and fulfils the requirements of the RSH’s Consumer Standards. The Customer Service Oversight Committee oversees the outcomes of customer involvement in key areas of work, reporting this to the Board. 48 Customer Service Assessors are conducting regular inspections across key areas, 15 block champions regularly assess high rise homes to assess building safety and The Service Improvement Group (SIG) has been established consisting of 11 members to provide oversight and evaluation by customers of the services we provide.

We strive to make the optimum use of our resources and assets and use the returns they generate to help us increase investment in our existing homes and build new ones, as explained throughout this statement. We demonstrate our efficiency by generating a strong operating margin and we demonstrate our effectiveness by building many more new homes that people need, investment in existing homes and striving towards high levels of customer satisfaction with our services and neighbourhoods. We demonstrate our economy by tight budgetary control and controlled procurement activity; ensuring where possible, costs are in line with or below our peers and driving down our outliers. These three VFM principles are measured through our performance against the value for money metrics set by the RSH and delivery against our own value for money targets.

Our optimal use of resources includes our approach to remuneration and employment costs. We regularly benchmark our salaries and strive to make them both competitive and in line with sector averages. This helps us to deliver good quality services for our customers by attracting the right talent.

Equity and Ethics principles underpin our approach to creating social and environmental value for our customers and communities. Our social justice transforming lives transformational programme includes VFM targets specifically aimed at delivering outcomes for health and wellbeing, employment and training and supporting those in hardship. Equity and Ethics also underpins our approach to Work and the Workplace of the Future which drives our practice in relation to how we attract and retain high quality people. We develop policies and practices that deliver a culture where colleagues feel engaged, treated fairly and are committed to delivering our ambitions. As we develop our approach to sustainability in the future, both from a corporate perspective and from the point of view of our customers’ homes, we will seek to deliver ambitions that are not underpinned by financial outcomes but by ethical outcomes, such as working towards net zero carbon aims for our homes, reduction in energy costs for our customers’ and reducing our corporate carbon footprint.

Transparency and accountability are important to us and we have appropriate performance monitoring and reporting systems in place which encompass all aspects of our VFM principles. Our social value ambitions are articulated throughout the relevant aims of Our 2030 Plan. In addition, our strategic report includes information on ESG and Sustainability.

The following sections demonstrate how we have delivered VFM against our strategic aims for the financial year ending 2024/25.

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Section 2 : Regulator of Social Housing VFM Metrics

In comparing our performance we look at two specific comparisons, firstly in relation to the sector weighted average and secondly the performance of our peer group. The peer group is created using the following criteria.

Our most representative peer group, taken from the Regulator’s database of all RPs, is providers between 20,000 to 30,000 homes, at least 50% of their homes of general needs type and at least 30% of their homes in the East Midlands or West Midlands. LSVTs and Traditional providers are grouped in this peer group.

The following charts compare our performance (gold) with sector (blue) then our peer group (pink). The sector and peer comparison data for 2024/25 is not yet published by the Regulator so will be included in next year’s statements.

The graph above shows that we are investing more in our homes as a percentage of our housing assets than both the sector average and our peer group.

The graph above shows that development programmes are not linear. Generally we are developing more than the peer group, as a percentage of our homes owned, over the past three years but slightly below the sector average.

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The graph above shows that we are more highly geared (debt as a percentage of our housing fixed assets) than both the sector average and our peers. Our gearing is declining which is an indicator of increasing financial strength.

The graph above shows that all organisations are seeing increasing cost per home as a percentage of social homes owned. We have lower costs than the sector average and peer average due to our high concentration of general needs homes and ongoing efficiency drives.

The graph above shows that we have outperformed both the sector average and our peer group for operating surplus as a percentage of interest costs. We expect this trend to continue but expect our percentage to reduce in 2025/26 due to our increased investment in existing homes.

The graph above shows that there has been a downward trend on margins (surplus on social housing lettings as a percentage of turnover from social housing lettings). Whilst we have seen some reduction in margin we compare favourably with both the sector and our peers.

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The graph above shows a similar pattern to the social housing lettings margin. Whilst we have seen some reduction in margin (operating surplus as a percentage of turnover) we compare favourably with both the sector and our peers.

The graph above shows that we compare favourably against both the sector average and the peer group in terms of return on capital employed (operating surplus as a percentage of net assets).

Section 2 Continued: TSM Comparisons

Our Tenant Satisfaction Measures are reported quarterly to our Customer Services Oversight Committee. We aim to perform better than the sector average (median) on our measures as we strive to deliver a good service, particularly in those areas that are most important to our customers.

We will channel future available investment capacity into those areas that need improving the most. Due to the nature of our areas of operation, predominantly Walsall, nearly 90% of our homes are in the top 30% of the poorest neighbourhoods in England, and 46% are in the top 10%. This is much higher than the national social housing average. All those measures marked as ‘green’ show that we already perform better than the sector average in many areas.

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Tenant Satisfaction Measures 23/24 whg
performance
24/25 whg
performance
Trajectory
23/24 Average
(Median) Scores
Published by the
Regulator
23/24 Peer
Group Average
Scores
TP01: Taking everything into account, how satisfied or dissatisfied are you with
the service provided by your landlord?		 70%
77%
73%
71%
TP02: If yes, how satisfied or dissatisfied are you with the overall repairs service
from your landlord over the last 12 months?
TP03: If yes, how satisfied or dissatisfied are you with the time taken to complete
your most recent repair after you reported it?		 74%
80%
73%
70%
62%
71%
69%
64%
TP04: How satisfied or dissatisfied are you that your landlord provides a home
that is well-maintained?		 72%
77%
73%
71%
TP05: Thinking about the condition of the property or building you live in, how
satisfied or dissatisfied are you that your landlord provides a home that is safe?		 79%
82%
79%
78%
TP06: How satisfied or dissatisfied are you that your landlord listens to your
views and acts upon them?		 56%
64%
63%
61%
TP07: How satisfied or dissatisfied are you that your landlord keeps you
informed about things that matter to you?		 67%
72%
73%
72%
TP08: To what extent do you agree or disagree with the following? “My landlord
treats me fairly and with respect.”		 77%
84%
79%
78%
TP09: If yes, how satisfied or dissatisfied are you with your landlord’s approach
to complaints handling?		 35%
36%
37%
36%
TP10: If yes, how satisfied or dissatisfied are you that your landlord keeps these
communal areas clean and well-maintained		 61%
63%
67%
68%
TP11: How satisfied or dissatisfied are you that your landlord makes a positive
contribution to your neighbourhood?		 62%
69%
65%
65%
TP12: How satisfied or dissatisfied are you with your landlord’s approach to
handling anti-social behaviour?		 52%
59%
61%
62%
RP01: Proportion of homes that do not meet the Decent Homes Standard 0.01%
0.08%
0.07%
0.2%
RP02: Percentage of repairs within the target time set for themselves -
Emergency Repairs in time		 98.4%
99.7%
95%
89%
RP02: Percentage of repairs within the target time set for themselves - Non-
Emergency Repairs in time		 63%
82%
80%
65%
BS01: Proportion of homes for which all required gas safety checks have been
carried out		 99.9%
100%
100%
99.9%
BS02: Proportion of homes for which all required fire risk assessments have
been carried out		 100%
100%
100%
99.8%
BS03: Proportion of homes for which all required asbestos surveys have been
carried out		 100%
100%
100%
99.4%
BS04: Proportion of homes for which all required legionella risk assessments
have been carried out		 100%
100%
100%
99.9%
BS05: Proportion of homes for which all required communal lift safety checks
have been carried out		 100%
100%
100%
97.4%
NM01: Anti-social behaviour cases relative to the size of the landlord - total
cases per 1,000 homes		 42
55
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NM01: Anti-social behaviour cases relative to the size of the landlord - total
cases involving hate crime per 1,000 homes		 0.8
2.0
0.6
1
CH01: Complaints received relative to the size of the landlord - total stage 1
complaints per 1,000 homes		 22
32
48
60
CH01: Complaints received relative to the size of the landlord - total stage 2
complaints per 1,000 homes		 5
8
6
10
CH02: Complaints responded to within Complaint Handling Timescales - Stage 1 98.5%
97.2%
87%
82%
CH02: Complaints responded to within Complaint Handling Timescales - Stage 2 92.2%
98.1%
88%
87%

As shown by our TSMs, we have made significant improvement this year on a number of our measures which is due to a combination of enhanced levels of investment and improved processes. Further work is required in some areas as explained below:

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Over the last 12 months we have undertaken a deep dive into our ASB handling TSM score, including engaging customers who have had experience of our service, in order to understand what and where we needed to improve. To support our customers with this exercise, TPAS (Tenant Participation Advisory Service) were engaged to provide independent advice and guidance. With the help of our customers we created an improvement plan, which has been available for all of our customers via our website. Improvements to our service have included the introduction of new policies and procedures, a new triage and risk assessment process for all new reports of ASB and ongoing training and development for our colleagues. Although we are pleased to report that satisfaction has improved by 6.7% over the last 12 months (52.2% to 58.9%), reflecting all the hard work and changes that have been made, we know that there is more to do. Our new Customers and Communities Strategy 2025-2028 recognises the importance of this to our customers and we are therefore working towards achieving accreditation for our ASB service within year 1 of our strategy (2025-26).

Where possible, we will channel future investment into those areas that need improving the most.

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~~|~~ Section 3 : VFM gains achieved through consideration of alternative delivery structures

There are a number of activities in place across the business to implement new ways of working through alternative commercial, organisational and delivery structures. A number of VFM gains have been made over the past few years and further gains are forecast for the future.

The tables below summarise the VFM gains. As shown, we have a successful track record in delivering cashable VFM gains. We have set up our Corporate Company Structure in such a way to maximise VAT efficiencies in relation to our key areas of spend. We continue to engage in procurement activity which seeks to reduce our costs while maintaining quality of service delivery. We obtain ad hoc grants for our asset management work and we continually seek to refine our funding arrangements. We continue to benefit from significant refinancing work which ensures we pay the least amount of debt servicing costs and this had continued to deliver benefit in 2024/25. Cashable gains in 2024/25 are £19.4m; all of these gains are reinvested in our business so we can deploy more resources directly to our frontline services or new development programme.

For non-cashable gains, these are mostly derived from ‘social value’ that has been created by either our community investment activities or our new development programme. We use the HACT model to calculate social value which uses various multipliers for each activity. For example, with new development spend, £48.1m of development spend is multiplied by 3.5 to derive £168.35m of social value. The value is deemed to represent improved prospects for a new person or family being provided a permanent and affordable place to live.

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2023124 2024125 2025126 2026127 2027128 £OOOs 2028129 £OOOs Efflclency Getdng the most out of tho resources put Target Actual Target Actual Target Target Target Target Procurement Vat Recovery IPartial exemption Val Recovery Iwhg Developmenlsl Val Recovery Icomponentsl Universal Credit BOT Project Benefits Income from commercial activity Board and Committee Recruitment Vehicle costs Cost Reductions Development grant Profit on property sales Joint Venture profits Market rent surpluses Totsl VFM 8avlngs Cashablo Non Cashablo 100 75 68 1.913 10 100 807 335 100 83 1.537 10 151 764 131 75 37 1.556 10 562 82 100 1,180 10 226 1,515 31 250 75 28 1.136 15 394 636 257 77 28 1,552 16 404 636 263 79 29 1.000 16 415 636 270 81 30 750 17 425 636 1.333 838 1.047 1,047 646 18,113 5,661 646 4.709 6.658 3,251 4.260 5.132 338 332 144 440 229 347 7.748 13m5 11018 11987 7,538 12,509 12,531 15,158 210 496 829 3.134 6.485 316 4,500 3,380 10.038 4.693 15,903 5,840 217 230 19,624 18,947 677 244 28,149 27,455 694 258 24,210 23,498 712 10,810 659 2023124 2024125 2025126 2026127 2027128 £IXIOg 2028129 £OOOs Effgctlvoness Uslng our resources to achlevo our alms and soclal purpos8 Procurement Target Actual Target Actual Target Target Target Target 10 48 10 15 16 16 Asset Management savings Insurance Housing Disrepair Project Benefits People Services 53 so 254 222 305 55 55 57 57 58 58 60 60 100 19 137 TotalVFM8avkv￿ 213 721WI 67 711 Cashable 53 Non Cashable 160 125 Wl 129 Wl 132 Wl 136 321 67 711 125 129 132 136 2023124 ÉIIOOS 2024125 ÉIIOOS 2025126 £OOOs 2026127 £OOOs 2027128 £OOOs 2028129 £OOOs Ethlcs Use our resources wlth Intsgrfty In our communllles Target Actual Tawget Actual Target Target Target Target Health & Wellbeing Out¢ome5 Customer Voice Digitsl In¢lusion Housing Benefit Bill Savirwjs Extemal Funding Donations Environmental Gains 317 241 270 277 284 292 EPC C energy bill savings 43 119 990 1.016 1.042 1.069 TotslVFMSa¥kw ￿ 24,830 2W 4056 2JJ) 27321 27,920 28,637 29,372 6.105 4.750 4.243 8,107 1.600 25 10,098 4,575 851 6,095 7.188 6.499 5.593 7,745 14,705 4.912 15.087 5.040 15,480 5,171 15,882 5,305 9.545 460 8.395 6.000 344 6,156 6,316 344 6,480 344 270 Cashablo Non Cashablè 1,625 1,005 730 532 23,205 21,662 22.326 22.758 614 26,607 621 27.299 628 28,009 636 28,736 30

How we use our gains

For our cashable gains, these have all helped to build capacity and strength in our financial plans and have been used for reinvestment in existing homes and new affordable homes. Of the £19.3m cashable gains generated:

Ethics and Equity Gains

Our community investment programme is focused upon tenancy sustainment, using low-cost high impact incentives. We meet customers basic needs and provide a human bridge into opportunities such as education, training, and employment.

During 2024/2025 our Money Advice Service managed to secure financial gains for customers of over £6m, 30% more than last year. This includes over £4m secured in Housing Benefit and Universal Credit, £579k additional disability benefits and over £460k through the renegotiation of debt agreements, including the clearing/reducing or rescheduling of debt (not including rent arrears).

Our Money Advice Team is a vital part of our ‘Here When you Need Us’ services for our customers, focussing on sustaining tenancies and helping us achieve our ambition not to evict anybody into homelessness. Last year we only had 12 evictions, which is a significant achievement given our size, the continued pressure on household finances and the economic challenges that our communities face. This has a direct business benefit, with each eviction estimated to cost us in excess of £25,000 in lost income, court costs and repairs.

Over the last 12 months, our Work 4 Health programme supported 190 customers to move into sustainable work within the NHS increasing customers income and improving outcomes. Over 50% of customers who secured a job began their journey with us by receiving a Diwali Hamper or a Kindness Bag, demonstrating the power of incentives and hooks to begin important behaviour change.

With 46% of children in the West Midlands impacted by child poverty our Kindness Shops (places in our communities to exchange donations) are a unique dignified way to offer parents access to good quality children’s clothes, footwear, and household items. We know from feedback that this initiative reduces the likelihood of low-income families buying goods using high interest credit such as doorstep lending and catalogues. Kindness Shops are therefore an effective intervention to reduce the impact of child poverty. In 2024/2025 we held 3 Kindness Shops with 181 customers attending and benefitting. Our Money Advice Team attend the pop-up shops providing an informal pathway to support for rent arrears or debt.

With research highlighting that 18% of school absences are due to asthma which contributes to poorer educational outcomes, our ACEing Asthma programme is designed to ensure that a child’s asthma is

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not made worse by environmental factors within the home such as damp or mould and that children have equitable access to health services.

In 2024/2025 ACEing Asthma supported 84 children ensuring they were receiving equitable support from community asthma services. The programme supported 35 parents by referring them to whg’s Money Advice to secure additional benefits or to manage debt. 95% of families were on a low income and were therefore provided with fuel vouchers, children’s winter coats, shoes, bedding, carpets, and white goods. The programme does not want to create dependency but is focussed upon upskilling customers to self-help. 15 of the parents completed accredited training or moved into work via our Work 4 programme. One of the parents is now employed within whg helping other customers to access the services which have improved her family’s prospects.

Service Reviews

To ensure we get value from money from our operational structures and ways of delivering services, a key commitment of our VFM strategy is to carry out a number of service reviews each year. The reviews not only look to benchmark ourselves against others but also to identify innovative ways to become more efficient, in terms of how we deploy our people resource and whether or not we are maximizing use of technology in our processes. Service reviews are carried out using a combination of in house subject matter experts, our Insight and Improvement Team and third party advisors. During 2024/25 the following reviews were undertaken

Home Maintenance Service (HMS)

Teams have been re-aligned into responsive and programme delivery teams with each team being arranged into two geographical areas East and West, to further improve delivery efficiency and reduce outstanding repairs. An additional 18 trade operatives are also being recruited to keep up with customer demand.

In addition to the above, we have an active 'HMS Continuous Improvement Plan' in place focusing on the reduction in manual processes, improved use of IT system functionality, improving data, training colleagues and enhancing reporting.

Asset Investment

Investment in colleague resources in the Asset Investment Team has been made to increase skills, capacity, and knowledge needed to scale up the delivery of energy efficiency works to meet the ambition of EPC C by 2030. Asset Investment is subject to increasing challenges around building safety, net zero carbon and inflationary pressures on component costs. The team structure will enhance our ability to plan, maximise the return on investment and efficiently model capacity and resource requirements. Strengthening the commercial and contractual oversight will also enable us to maximise the value for money outputs across programme delivery.

Building Safety

The introduction of the Building Safety Act has marked a pivotal shift in how building safety is regulated across England and Wales. In response, we undertook a strategic review of our Building Safety Team to ensure we were structured effectively to meet the Act’s demands, in particular the principle of accountability.

As a result, we established a streamlined, centralised team structure with dedicated roles that focus on the core disciplines of building safety. This restructure delivers value for money by driving efficiency, improving oversight, and strengthening leadership. The key benefits include:

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This targeted, accountability-led model ensures we are well positioned to deliver safe buildings and provide greater assurance for residents.

Neighbourhoods

An independent review of the Neighbourhoods Service was conducted in 2024 which made a number of findings in relation to processes, ways of working, customer experience and technology. In response to these findings, the Neighbourhoods Service will be redesigned in 2025, the key benefits that this will deliver are:

Cost reduction plan

During the year we prepared a cost reduction plan aiming to reduce our operating costs by 4% by 2026/27 and then reinvest these savings when they are generated. Our cost reduction plan includes a reduction in FTEs (£1m) which has already been implemented to support the creation of a number of new posts in both frontline service areas and back office to support the delivery of Our 2030 Plan. We also aim to reduce our vehicle repairs costs in 2025/26 by purchasing a new fleet of vehicles and we are on track for delivery of these savings. We have commenced implementation of small scale automation technology to improve efficiency in back office functions such as Finance and HR, aiming to reduce running costs by an amount equal to the investment cost.

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Principal Risks and Uncertainties

The environment in which we operate produces inherent risks that we face in our everyday operations including economic challenges, government policy, technological and social change. The Board clearly sets out its appetite to risk, providing the setting for business operations. The Board’s overall risk appetite for whg is considered with regards to the strategic risks and thematic risk appetites, as well as whg’s values and purpose and corporate aims. The Board considers risk appetite in the context of regulatory requirements, the operating environment, whg’s positive culture, and financial capacity.

No business is without risk and the Board recognises that risks undertaken must have an associated reward. Therefore, some risk appetites may carry more weight in decisions than others. The Board has a balanced overall risk appetite, acknowledging the healthy strategic tension between some thematic appetites and recognising it as a driver for robust discussion and decision-making.

The Board’s thematic risk appetite is set out below:

Key: Averse ~~| |~~ Minimal Balanced Open ~~| |~~ Seeking ~~||~~

We are not averse to taking on measured risk to deliver our objectives, but when taking these decisions, the Board fully appraises the risk to understand the potential impact. The Risk Management Framework approved by the Board sets out the arrangements for identifying and managing risk as set out in the process below.

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The Group has adopted the three lines of defence risk management model, which is designed so that assurance is obtained through the strength and source of controls and the Group’s reliance upon them. Regular reviews of risk and work set out in the Risk Management Framework are overseen by the Risk Panel, Executive Team and Audit and Assurance Committee which remain focused on mitigating risks at all levels in the business whilst the Board retains overall responsibility. This ensures effective controls are in place. This approach is central to putting us in a strong position to achieve our strategic aims and embrace opportunities as they may arise.

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The Board, as part of its review of risk management, has identified its most significant Strategic Risks and uncertainties, together with the mitigating actions taken in order to ensure that the risks are appropriately monitored and controlled. A summary of our Strategic Risk Register is set out below.

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Key to Summary of Assurance

Substantial Moderate Limited

Strategic Risk Summary (risk category) Risk Scores Risk Scores Appetite/Target
risk score
Gross (G) Net (N)
1. Serious H&S incident (not including landlord H&S or
building safety)		 21 18 Averse/3
OUTSIDE APPETITE Summary of Assurance
First line Second line Third line
This risk includes the potential for colleague, contractor and the public safety issues, with the potential impact of a serious
incident linked to human error. Robust controls include the H&S and other policies, People and Culture dashboard,
sickness absence management system, mandatory training, and work is underway to strengthen other controls and
assurance. This risk is therefore ‘treated’ with improvement actions in progress to further mitigate the risk and reduce the
scores closer to the averse ‘health and safety’ risk appetite and target score.
Strategic Risk Summary (risk category) Risk Scores Risk Scores Appetite/Target
risk score
Gross (G) Net (N)
2. Information security resilience is inadequate 25 18 Minimal/8
OUTSIDE APPETITE Summary of Assurance
First line Second line Third line
This risk covers an information security breach leading to major service disruptions and/or the compromise of sensitive
data. This risk is currently managed outside of the minimal ‘IT security and resilience’ risk appetite and target score,
however controls are robust with the delivery of the Security and Stability programme in 2024/25, which included updating
the system infrastructure and hardware. This risk is ‘treated’ with further control improvements in progress and Cyber
Essentials accreditation will be sought towards the end of 2025, providing additional assurance. This will reduce the risk
scores closer to the minimalist ‘IT securityand resilience’ risk appetite and target score.

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Strategic Risk Summary (risk category) Risk Scores Risk Scores Appetite/Target
risk score
Gross (G) Net (N)
3. Severe flooding and/ or overheating of assets 20 17 Open/17
WITHIN APPETITE Summary of Assurance
First line Second line Third line
This risk focuses on the impact of climate change resulting in flooding or overheating of whg’s homes, following a climate
hazard screening assessment by external consultants. Controls include the Sustainability Strategy and Decarbonisation
Roadmap, investment in existing stock and the ‘whg Standard’ for development of new homes. This risk is managed
within the open ‘Environment/zero carbon approach’ risk appetite and target score, and classed as ‘treated’ with work
underway to strengthen the controls and further mitigate the risk. External assurance from the Ritterwald sustainable
housinglabel remains inplace.
Strategic Risk Summary (risk category) Risk Scores Risk Scores Appetite/Target
risk score
Gross (G) Net (N)
4. Critical distress within the development programme 23 14 Open/17
WITHIN APPETITE Summary of Assurance
First line Second line Third line
This risk deals with potential ‘distress’ across a number of development schemes, resulting in significant financial impact
for whg and a failure to deliver the Development Strategy. It is managed within the open ‘growth – development’ risk
appetite and target score, with controls including funding availability, robust governance, technically experienced teams,
robust contractor/development partnership arrangements and appropriate due diligence around development
opportunities and land acquisitions. A new Development Strategy and strengthening of the senior leadership structure will
maximise the first line controls. This risk is classed as ‘treated’ as the controls mitigate the risk.
Strategic Risk Summary (risk category) Risk Scores Risk Scores Appetite/Target
risk score
Gross (G) Net (N)
5. Data integrity is inadequate 24 9 Minimal/8
OUTSIDE APPETITE Summary of Assurance
First line Second line Third line
This new risk was identified in June 2024, recognising the importance of the reliance on robust data to inform strategic
decisions and ensure excellent customer service. Existing controls include the stock condition database and strong
income collection systems, as well as experienced colleagues and system and procedure training. This risk is currently
managed outside the minimal risk appetite and target score, but is ‘treated’, with work in progress to strengthen controls
and assurance, including the delivery of a strategic transformational programme to ensure data-driven decisions,
envisaged to bringthis risk to within risk appetite and target score.

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Strategic Risk Summary (risk category) Risk Scores Risk Scores Appetite/Target
risk score
Gross (G) Net (N)
6. Serious H&S incident due to breach of landlord H&S or
building safety obligations		 21 9 Averse/3
OUTSIDE APPETITE Summary of Assurance
First line Second line Third line
This risk includes the potential for customer safety issues in their homes or buildings (building safety, gas, electrical, fire,
water hygiene, asbestos, mechanical equipment). Internal controls are robust and many, including qualified colleagues
and robust safety checking programmes, with detailed scrutiny of performance in this area, and strong external
assurance. The risk is ‘tolerated’ outside of the averse ‘health and safety’ risk appetite and target score due to the
possibility of human error and the impact of a potential serious incident, but the controls and assurance demonstrate this
risk is mitigated as far as it can be.
Strategic Risk Summary (risk category) Risk Scores Risk Scores Appetite/Target
risk score
Gross (G) Net (N)
7. Deterioration or damage of assets (homes/blocks) 24 9 Open/17
WITHIN APPETITE Summary of Assurance
First line Second line Third line
This risk considers the potential risk to customer homes and buildings due to insufficient asset investment or accidental or
deliberate damage. This risk is managed within the open ‘asset management and regeneration’ risk appetite and target
score with strong controls and assurance in place and is therefore classed as ‘treated’. Controls and assurance include
the Asset Management Strategy, detailed stock condition data, funded investment programmes and continuously
improving Home Maintenance Services, as well as robust scrutiny of performance and external assurance.
Strategic Risk Summary (risk category) Risk Scores Risk Scores Appetite/Target
risk score
Gross (G) Net (N)
8. Ineffective services to customers 20 9 Open/15
WITHIN APPETITE Summary of Assurance
First line Second line Third line
This risk covers the potential for service failure across any area of the business delivering front line services to customers.
Controls such as the embedded community housing model, support services attracting external funding, and ongoing
improvements to Home Maintenance Services ensure this risk is managed well within the open ‘customer service’ risk
appetite and target score, enabling ongoing support and excellent services for customers and communities. The
December 2024 C1 Consumer Standards rating from the Regulator of Social Housing’s Inspection confirmed this risk is
well managed,and the controls and assurance inplace mean this risk is classed as ‘treated’.

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Strategic Risk Summary (risk category) Risk Scores Risk Scores Appetite/Target
risk score
Gross (G) Net (N)
9. Insufficient funding 17 9 Balanced/13
WITHIN APPETITE Summary of Assurance
First line Second line Third line
Loan and grant funding, rental income, void rent loss, sale of outright sale and shared ownership homes are all identified
as risk areas, but this risk is well controlled overall and managed within the balanced ‘Finance’ risk appetite and target
score, despite external political and economic factors. Strong controls are in place, including the Treasury Management
Strategy, Golden Rules and stress testing, as well as a range of external assurance. This includes the December 2024
confirmation of the V1 rating from the Regulator of Social Housing and the A2 rating from Moody’s. This risk is therefore
well managed and classed as ‘treated’.
Strategic Risk Summary (risk category) Risk Scores Risk Scores Appetite/Target
risk score
Gross (G) Net (N)
10. Insufficient colleague resource (capacity and capability) 13 8 Open/13
WITHIN APPETITE Summary of Assurance
First line Second line Third line
This risk considers the impact of not having the right or sufficient colleagues on the delivery of Our 2030 Plan. Challenges
with recruiting and retaining the right people are generally limited to a small number of specialist roles. Controls include
competitive pay and benefits, a robust recruitment process and performance management framework, and strong
learning and development arrangements. The risk is managed below the open ‘people’ risk appetite and target score of
13, and is classed as ‘treated’, with the controls in place mitigating the risk.
Strategic Risk Summary (risk category) Risk Scores Risk Scores Appetite/Target
risk score
Gross (G) Net (N)
11. Inadequate governance arrangements 24 3 Minimal/8
WITHIN APPETITE Summary of Assurance
First line Second line Third line
This risk covers the potential for governance failures across the Group, as well as non-compliance with legislation and
regulation, including data protection. The many mitigating controls ‘treat’ the risk, ensuring it is managed within the
minimal ‘legal and regulatory compliance’ risk appetite and target score. Controls include strong board, committee and
inter-group arrangements which minimise the risk to whg as the parent, and its social housing assets, and protecting its
charitable status and objectives. A verified risk management and strong internal controls framework supports the strong
governance arrangements. The December 2024 confirmation of the G1 rating from the Regulator of Social Housing, for
compliance with the Governance and Financial ViabilityStandard, provided assurance that this risk is well managed.

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Sustainability, Net Zero and ESG (Environmental, Social and Governance)

Streamlined Energy and Carbon Reporting (SECR)

We use the Streamlined Energy and Carbon Reporting (SECR) guidance to measure and report on our carbon footprint. This policy was implemented on 1 April 2019, when the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 came into force. This will be the standard against which we can gauge energy and carbon performance across the whole organisation. It will also highlight what we need to change and where.

By tracking our energy and fuel consumption and the associated carbon emissions, we can see if our improvements are working and set ourselves targets to achieve which will help us reach our goal of becoming a net zero carbon organisation by 2050.

We have opted to use the Operational Control boundary definition to define our carbon footprint boundary. The reporting period for the compliance is 1 April 2024 – 31 March 2025. Included within that boundary are Scope 1 & 2 energy emissions, as well as Scope 3 emissions from business travel in the UK.

How is our Carbon Footprint measured?

The mandatory reporting requirements (for Companies registered under the Companies Act), under the SECR guidance include annual greenhouse gas (GHG) emissions from activities for which the company is responsible including combustion of fuel and operation of any facility. Carbon emission data is split into Scope 1, 2 and 3.

Scope 1 relates to the direct emissions from gas and transport fuel combustion. For us this will include gas consumption from our offices, community centres, communal areas and plant rooms, as well as transport fuel used for our company fleet.

Scope 2 relates to the indirect emissions from electricity generation. For us this will include electricity consumption from our offices, communal areas, and plant rooms.

Scope 3 relates to the indirect emissions associated with our value chain. The only mandatory reporting for Scope 3 is the emissions from business travel in employee-owned vehicles where the organisation is responsible for purchasing the fuel. The rest of Scope 3 is only optionally reported because it can be harder to track, and the boundaries are harder to define.

Methodology

The methodology used to calculate emissions followed the guidance from the revised edition of the GHG Protocol Corporate Accounting and the Reporting Standard and the UK Government Guidance on SECR.

For Scopes 1 and 2 we have used energy and fuel consumption data from our suppliers and partners and used The UK Government Department for Business, Energy and Industrial Strategy’s (BEIS) 2022 conversion factors to calculate the CO2e emissions. Business travel is recorded as mileage from the expenses system and the UK conversion factors relating to mileage allowed us to calculate the emissions.

In SECR reporting there are two reporting approaches: ‘location-based’ and ‘market-based’. Locationbased reporting is the mandatory method and uses grid average figures (a mix of renewable and nonrenewable fuels). A market-based reporting approach calculates the emissions associated with the energy sources or tariffs that the consumer has specifically chosen.

Carbon intensity ratios

Our Scope 1, 2 and 3 emissions are also measured against factors that indicate the size of the organisation. For our disclosure, we have used the number of full-time employees. This provides us with

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a ‘carbon intensity ratio’ that help us to understand our carbon footprint relative to our size. It means we can not only benchmark against future reports if we change size, we can also compare ourselves directly to other, similar organisations.

Energy efficiency actions

We have invested heavily over many years and continues to invest in our homes to improve their energy efficiency and move all homes above EPC band C rating over the next 5 years. We also has a clear commitment for our homes, commercial buildings and our business to achieve Net Zero by or before 2050.

Within the 2024/25 financial year, we completed 1,539 thermal or heating improvement measures which include;

From these energy efficiency improvement measures it is expected that a significant amount of energy will be saved over the next five years.

Carbon Emissions Reporting

Emissions Calculations

The tables below provide a breakdown of our footprint for 2024/25, comparing both market and location based emissions, comparing our performance against the previous financial year.

Figure 1 Market Based Emissions

Type of Emissions Activity
Activity		 (kWh) (tCO2e)
% of Total		 (tCO2e)
% of Total
Energy Generation
Solar PV Renewal Generation
Subtotal		 343,589 0 0%
343,589 0 0%
Natural Gas
Company Fleet
Subtotal
Direct (Scope 1)		 3,676,611
2,806,073		 0
671		 0%
90.1%
6,482,684 671 90.1%
Electricity
Subtotal
Indirect (Scope 2)		 3,219,808 0 0%
3,219,808 0 0%
(kwh)
Subtotal
Indirect Other (Scope 3)		 302,437 74 9.9%
302,437 74 9.9%
Total Energy Use (kWh) 10,004,929
Total (Market based *)Gross Emissions (tCO2e) 745
Full Time Employed FTE 767
Tonnes of Gross CO2e per
FTE		 (tCO2e) 0.97

The results show that our total energy use and total gross Green House Gas (GHG) emissions amounted to 10,004,929 kWh and 2,084 tonnes of CO2e (location-based) respectively in the 2024/25 financial year in the UK. This is a 3.5% increase from the previous financial year.

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As we purchase 100% green electricity and gas backed by REGOs and RGGOs respectively, our marketbased emissions for the 2024/25 financial year are zero. Furthermore, we generated 343,589 kWh of electricity through solar panels saving 84 tCO2e; this is an increase from 239,070 kwh or 58 tCO2e in 2023/24.

We have chosen ‘Tonnes of CO2e per full time employee (FTE)’ as an intensity metric as this is an appropriate metric for the business. The intensity metric for the financial year 2024/25 was 2.72 tCO2e/FTE compared to 2.58 tCO2e/FTE in 2023/24.

Figure 2 – Year on Year analysis (2024/25 vs 2023/24)

Type of Emissions Activity
Units		 YOY % Change
2024/25
2023/24		 YOY % Change
2024/25
2023/24		 YOY % Change
2024/25
2023/24
Energy Generation
(kwh)		 343,589 239,070 44%
(kwh)
(tCO2e)
Direct (Scope 1)		 6,482,684
1,343		 5,372,548
1,143		 21%
17%
(kwh)
(tCO2e)
Indirect (Scope 2)		 3,219,808
667		 3,694,003
765		 -13%
-13%
(kwh)
(tCO2e)
Indirect Other (Scope 3)		 302,437
74		 288,250
70		 5%
6%
Total Energy Use
(kWh)		 10,004,929
9,662,900
3.5%
Total Gross Emissions
(tCO2e)		 2,084
1,978
5.4%
Renewable Electricity
(tCO2e)		 667
765
-12.8%
Total Net Emissions
(tCO2e)		 745
835
-10.8%
Tonnes of Gross CO2e per
FTE
(tCO2e)		 2.72
2.58
5.4%

The year-on-year analysis outlines that there has been an increase of 3.5% in total energy usage (kWh) as well as a 5.4% increase in total Gross (Location Based) emissions between the 2024/25 and 2023/24 financial year. This is equivalent to 71 tCO2e.

Sustainable Finance

The RCF with Lloyds Plc is a sustainably linked loan and we have three measurable KPI targets for year ending 31 March 2025 of which 2 were met. The outcome of the three KPI’s are set out below.

The margin on the Lloyds RCF facility is 0.95% and this will be reduced by a maximum 0.05% on meeting or exceeding the three KPI’s, potentially saving on a fully drawn facility of £25k per annum. The adjustment reduces to 0.033% if 2 KPI’s are met, and 0.017% if only one KPI is achieved. If none are met, then there is no adjustment and no defaults are triggered. As the RCF is not currently drawn we are not benefiting from any discount.

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Financial Review

Statement of Comprehensive Income (SOCI)

5-year trend analysis of key financial ratios

24/25 23/24 22/23 21/22 20/21
£m £m £m £m £m
Statement of comprehensive income
Turnover 146.1 135.8 121.1 120.5 120.8
Operating surplus 38.8 41.8 39.2 40.5 38.4
Operating margin 27% 31% 32% 34% 32%
Net margin 17% 24% 18% 17% 23%
EBITDA 48.7 50.2 45.2 46.5 46.1
EBITDA (MRI) 21.7 28.3 29.8 28.6 34.4
Statement of financial position
Total assets less current liabilities 812.0 779.8 810.9 720.1 646.5
Long Term Debt 395.0 395.0 395.0 395.0 401.1
Deferred Grant 107.7 101.4 94.5 82.2 69.0
Other LT Creditors 21.4 21.9 22.8 22.8 0.1
Pension Provision 0.2 0.3 0.3 0.3 8.7
Other Provisions 1.8 0.9 1.2 0.5 0.8
Income and expenditure reserve 285.9 260.3 297.1 219.3 166.8
812.0 779.8 810.9 720.1 646.5
Funding metrics
Interest cover covenant 2.2 3.1 2.4 2.1 2.11
Weighted average cost of funds 4.2% 4.2% 4.2% 4.7% 4.8%
Gearing covenant (Housing Properties at Cost) 38% 39% 38% 39% -
Gearingcovenant(net debtper unit) - - -
14.8		 15.1

Turnover: £146.1m, a £10.3m increase since last year (£135.8m, 2023/24).

Social housing lettings contributed £132.6m to Group turnover for the year, an increase of £12.7m since the previous year. £12.6m of this increase is due to the annual rent increase of 7.7% and 467 new homes developed and let for the first time. £0.1m of the increase is due to variances in grant amortisation and revenue grants.

Other social housing contributed a further £11.3m to Group turnover for the year, a decrease of £2.4m since the previous year. £10.4m of this turnover is from the sale of shared ownership homes, which was £1.5m less than last year as less homes were ready for sale during the year. £893k of this turnover was from other miscellaneous income such as revenue grants and VAT recovered, a decrease of £883k from the previous year mainly relating to revenue grants; we received a government grant towards investment in existing homes last year as a one off which meant grants reduced for 2024/25.

Non social housing contributed £2.1m to Group turnover for the year, the same amount as last year.

Our five year trend shows turnover consistently increasing for a number of reasons. We have in place a funded development programme to deliver more new homes for rent and shared ownership each year which increases both our rental income and property sales income. We also dispose of a number of homes each year through right to buy, right to acquire, void sales, shared ownership first tranche sales and shared ownership staircasing sales; we have experienced growth in these types of sales year on year, contributing to growth in turnover. For our existing homes, our rents have typically increased by

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September CPI plus 1% every year in line with government regulations, with the exception of the rent cap in 2023/24, which also contributes towards our turnover growth. We also strive to maximise revenue grants where possible for various activities such as investment in our existing homes or community investment initiatives. Whilst this income stream does not increase year on year necessarily, some years it has contributed to growth in turnover.

Operating surplus: £38.8m, 27% operating margin (£41.8m, 31% operating margin, 2023/24) Operating performance continues to be strong with an Operating Surplus of £38.8m (27%). This has however decreased since last year by £3m despite the £10.3m increase in turnover; therefore the underlying cost increase £13.3m since last year. This is due to a number of factors which have put pressure on our cost base. The Group continues to be managing the compound impact of differential inflation experienced in 2023/24 when our rents were capped at a 7% increase whilst inflation on our cost base outstripped this. Average inflation on costs were between 10% and 20% depending on the nature of our costs; repairs costs and development costs experienced the highest inflation.

Social housing lettings costs increased by £12.2m. One main element of this increase was management costs (£5.8m) as we increased our average FTEs during the year by 33 and we also had a £2.2m higher than expected level of disrepair claims. We have set up a new provision for these claims moving forward. Another main element of the £12.2m cost increase is our revenue repairs increase (£4.9m). In addition to inflation on costs, we have increased our underlying investment in our Home Maintenance Service with a view to increasing the volume of repairs completed in the year to drive improvement in customer satisfaction. This investment is showing a positive impact as satisfaction scores have improved as set out in our TSMs. Depreciation is the other main element of the £12.2m cost increase (£1.1m); it will continue to increase each year as we build more new homes and implement more component replacements on existing homes.

Other social housing costs have increased by £1.8m since last year. The biggest increase was the £2.6m impairment charge which is a one off this year relating to a distressed development scheme that experienced unrecoverable costs. Grant was approved as a contribution towards the increased scheme costs in 2025/26 so next year’s SOCI is likely to include a release of grant to offset this impairment cost. The impairment cost is partly offset by a £693k reduction in property cost of sales for shared ownership homes as less homes have been available to sell this year. We have also experienced an increase in profit from other property sales (£958k) which has partly offset the impact of our impairment charge as we have sold more homes under right to buy, right to acquire, voids sales and shared ownership staircasing sales than the previous year.

Non social housing costs have reduced by £481k mainly due to a reduction in revenue grants for our community investment activities.

Our five-year trend on operating margin is a year-on-year reduction. In addition to the cost pressures experienced this year, we have taken strategic decisions in previous years to increase investment yearon-year in our homes, in particular our repairs service, and in our people, particularly in terms of growth in FTEs. This strategic approach to year on year capacity creation helps us to maintain and improve the quality of our services.

Net margin: 17% (24%, 2023/24)

The net margin is after accounting for interest and financing costs of £15.9m (2024: £15.4m), interest receivable £1.5m (2024: £6.1m of which £3m was notional interest on pension assets) and surplus from joint venture of £0.1m (2024: £0.3m). The margin has decreased since last year for the aforementioned reasons as well as a significant reduction in interest receivable of £4.5m. This is due to a one off notional (non-cash) interest receivable on our pension asset in 2023/24 (£3.2m) which we are unlikely to receive again. Furthermore our bank interest receivable has reduced by £1.3m as we are holding less cash reserves than the previous year.

Our five-year trend on net margin is a generally decreasing trend for all the reasons stated above. In addition, we have decreased our cash reserves steadily from £80m five years ago to £30.3m this year. This is due to spending the money raised from capital markets on developing new homes. We have therefore continued to receive less interest receivable on our deposits and investments over the years.

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EBITDA £48.7m (£50.2m, 2023/24)

Our Earnings Before Interest, Tax, Depreciation and Amortisation is a good indication of how well our operating surplus converts to cash. It was £48.7m this year, £9.9m higher than operating surplus after all the main non-cash accounting entries are eliminated. Whilst this is a decrease of £1.5m since last year, this is a healthy position as it means 33% of our turnover converts to cash. This cash is used to fund investment activities in existing homes and borrowing costs incurred on debt used to fund building new homes. This investment shows in the growth of our ‘Total assets less current liabilities’.

Our five year trend shows a continued reduction as we are strategically utilising our cash to fund ongoing increases in investments in existing homes and new homes. Our existing homes require cyclical component replacements as well as investment to improve their energy efficiency rating. Our development programme is planned to continue until 2030.

EBITDA MRI £21.7m (£28.3m, 2023/24)

Our Earnings before Interest, Tax, Depreciation and Amortisation, capital major repairs included, is similar to the metric above but this time takes off the cost incurred on existing homes capital investment. It has continued to reduce year on year for the past five years. The table below shows how our capital investment in existing homes has grown year on year as components are due for renewal as well as responding to changes in regulation on the quality and safety of our homes. We have also commenced our journey for all homes to be at least EPC-C by 2030.

The above spend has increased by 131% over the past five years which has continued to put pressure on our ability build more new homes and we have reduced our development programme as a result of this.

Statement of Financial Position

The Statement of Financial Position demonstrates the strength and capacity of the Group to continue to deliver our strategic objectives.

Total assets less current liabilities: £812m (£779.8m, 2023/24)

This is a combination of fixed assets and net current assets.

Fixed assets of £804m include capital expenditure (set out in Notes 12 to 14 to the Financial Statements) of £76.4m in major works to existing properties and in developing and acquiring new homes. The yearend balance includes £42.6m relating to schemes that are already on site and will contribute to future completed home targets.

Net current assets of £8.1m have decreased by £22.4m mainly due to the £19.6m reduction in cash and cash equivalents to fund continued expenditure on new development. The other £2.8m reduction is due to general movement in debtors and creditors as we have sold properties held for sale in debtors and received grants and other income in advance in creditors.

The five year trend shows that our asset base has continued to strengthen year on year with our investment activities.

Long Term debt: £395m (£395m, 2023/24)

Our historic debt has not increased this year as we have used cash reserves to fund the new development programme. As cash reserves deplete, it is expected we will draw our secured RCFs in the near future.

Deferred grant: £107.7m (£101.4m, 2023/24)

The net increase of £6.3m during the year as a result of securing Homes England Grant Funding for

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new development and Decarbonisation funding for EPC-C works. The increase is offset by amortisation charges to the SOCI as grant is released to the SOCI over the life of the asset to which it relates.

Other creditors: £21.4m (£21.9m, 2023/24)

The net movement was a decrease of £0.5m as a result of amortisation of loan premiums and issue costs on historic debt issues.

Pensions Provision: £0.2m (£0.3m, 2023/24)

This balance relates to a provision for pension liability on our Social Housing Pension Scheme. The liability has reduced by £0.1m as a result of an increased discount rate applied to our fund value and future liabilities.

Other provisions (£0.9m, 2023/24)

These have increased by £0.9m since last year as a result of a new provision being created for Section 11 Disrepair Claims. Increased volume of claims is a sector-wide issue and our approach to mitigate the financial impact includes recruitment of additional surveyors and increasing the legal and insurance team resource. With these changes we anticipate our level of payments to reduce.

Reserves: £285.9m (£260.3m, 2023/24)

Reserves have increased by £25.6m reflecting the total comprehensive income for the year. Movement in the reserves balances is further shown in the Statement of Changes in Reserves.

Funding metrics

Our funder metrics have a track record of strong performance over the past five years. Our interest cover remains strong at 2.2 times cover however it is on a downward trend. This is due to increased investment in existing homes and the compound impact of inflation on our cost base outstripping inflation on our rental income. There was also a one off impairment charge of £2.6m in respect of one development scheme that experienced financial distress and unrecoverable costs. Our gearing covenant has remained stable at 38%. Our weighted average cost of funds has remained unchanged at 4.2%.

Treasury Management

The Group has a formal Treasury Management Policy and Treasury Management Strategy which are reviewed annually by the Board. The Policy provides the framework within which the Group seeks to mitigate risk relating to the borrowings and cash holdings it has at any one time. The Strategy aims to maximise capacity within the funding structure so that the Group can continue investing in new homes and existing homes. The Group has a balanced risk appetite in relation to its debt portfolio and seeks to ensure that sufficient liquidity is available to meet foreseeable needs. Treasury activities are also supported by independent professional advice.

Liquidity and Capital Structure

The Group finances its activities using facilities of £595m, made up of several funding sources as shown in the chart below. Strong liquidity is also in place as 34% (£200m) of secured facilities are currently undrawn.

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Interest Rate Risk

The Group manages its interest rate risk through its Treasury Policy which requires at least 60% of drawn debt to be fixed. As at 31 March 2025, 100% of debt was fixed.

Investment Policy

Cash balances are invested on competitive term rates until required. In accordance with the Treasury Management Policy, the Group maintains a list of investment limits for approved organisations with which it will deposit funds. The ratings of the approved organisations are checked to ensure investments are not at risk. Surplus cash is mainly invested in AAA rated money market funds as well as fixed or floating deposit accounts. Rates of interest have increased during the year as these vary with Bank of England base rate and in the final quarter of the financial year the average weighted return across the portfolio was 5.2%.

Currency Risk

The Group borrows and invests in GBP sterling only and therefore does not have any currency risk.

Loan Covenants

The Group ensures that it operates with a prudent level of headroom on all loan covenants and monitors forecast covenant performance on a monthly basis. This is reported to the Board on a quarterly basis. The Business Plan is resilient to these covenants with a degree of headroom. As at 31 March 2025 and throughout the year, the Group met all of its covenant targets, golden rules and trigger points for the financial year.

Credit Rating

During the year we retained our Moody’s rating of A2 stable which was reaffirmed in January 2025. We have maintained our rating amidst a challenging period for the Housing Association sector.

The credit strengths listed were:

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The Strategic Report of the Board was approved by the Board on 31 July 2025 and signed on its behalf by:

31 July 2025

31 July 2025

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The Report of the Board

The Report of the Board

The Board presents its report and audited Financial Statements for the year ended 31 March 2025. The Walsall Housing Group structure, registration status and principal activities are shown in the Strategic Report.

Board Statement of Public Benefit

The Group’s aims and activities primarily benefit people in the following ways:

The Board has concluded that our activities are in the public interest as defined in the Charity Commission’s guidance. Our activities are restricted only in terms of our chosen area of operation and our published policies, designed to ensure fair access to our services for all those in housing or other need.

The Board is not aware of any private benefits and has robust policies in place to prevent unintended benefits to related parties. The incidental benefits of a well-run housing service and environmental improvements are shared by our customers. As a registered charity, the Board Members of Walsall Housing Group Limited, who are considered Trustees under charity law are responsible for ensuring compliance with all relevant charity law. We provide annual returns to the Charity Commission and have arrangements in place to obtain Trustees’ consent before disposing of assets. Any non-charitable activities are carried out in an appropriate subsidiary company.

Governance

The Non-Executive Board Members (Trustees) and the Executive Directors are listed in the front of these accounts. As of 31 March 2025, the Board was made up of eleven non-executive Board Members and one Executive Board Member (Group Chief Executive), who are responsible for the Group’s governance. The Board meets regularly, with additional development days and training days. The Board works alongside the Executive Team which is responsible for the day to day management of the Group’s activities. The Board complies with the National Housing Federation Code of Governance 2020 and can have a maximum of 12 Members. The Board and Committee structure is summarised below:

Committee Members are appointed by the Board and each Committee is chaired by a Board Member, providing accountability to the Board.

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Complying with the National Housing Federation (NHF) Code of Governance

The Regulator of Social Housing (RSH) requires all Registered Providers (RPs) to adopt and comply with a recognised Code of Governance. The Board approved the adoption of the latest version of the National Housing Federation (NHF) Code of Governance 2020 from April 2021, as recommended by the Governance and Remuneration Committee (now the People and Governance Committee). The People and Governance Committee reviewed and approved the latest self-assessment against the Code of Governance in May 2025 on the basis that it had strong assurance that whg and its subsidiaries, where applicable, are fully compliant with the NHF Code of Governance. The subsidiaries have also adopted the Code where it is relevant. As required by the NHF Code of Governance, an external and independent review of our governance took place in spring 2025. The outcomes were hugely positive with the assessment noting areas of good practice, robust controls and an effective approach to managing governance.

Board Statement on compliance with RSH’s Governance, Financial Viability and Consumer Standards

The People and Governance Committee has completed an annual assessment of our compliance with the RSH’s Governance, Financial Viability and Consumer Standards and reported to the Board in May 2025 that we are fully compliant in all material respects. This includes using reasonable endeavours to ensure compliance with all relevant law, including the review of six monthly updates from an external legal advisor. Our procedures ensure that we comply with statutory requirements and compliance activities. We have effective and robust governance arrangements in place that enable us to successfully deliver our corporate objectives and continually improve our services to customers. Robust oversight, scrutiny and procedures are in place to ensure that we remain viable and that our assets are not put at risk.

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General Data Protection Regulation

We respect an individual’s right to data privacy and data protection in line with the General Data Protection Regulation (GDPR). We are pleased to report that we have not needed to make any reports to the ICO this year.

Board Statement on Modern Slavery

This statement is made under Section 54(1) of the Modern Slavery Act 2015. It constitutes our AntiSlavery and Human Trafficking Statement for the financial year ending 31 March 2025. This statement is approved by the Board and applies to all organisations within the Group. It is reviewed and updated annually. We are committed to acting ethically and with integrity in all business relationships. We have taken steps to ensure that adequate processes and controls are in place to ensure slavery and human trafficking is not taking place anywhere in our supply chains. To read the full statement, visit: whg-AntiSlavery-and-Human-Trafficking-Statement-2024-2025.pdf

Statement by the directors in performance of their statutory duties in accordance with s172(1) Companies Act 2006

The Board of Directors of Walsall Housing Group Limited consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the Group for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a-f) of the Act) in the decisions taken during the year ended 31 March 2025. We work within a regulated sector and are proud to hold the highest level accreditation of G1/V1/C1 for our governance activity, our financial viability and our compliance with consumer regulation.

Long term consequences of our decisions

Our 2030 Plan was designed to have a long-term beneficial impact on the Group and to contribute to its success in delivering quality homes and services to our customers. The plan was informed through consultation and engagement with customers and stakeholders, enabling us to ensure our strategic objectives align with those views and priorities. Our organisation is here for the long-term and decisions and plans are always made with that forward-thinking view. We will continue to operate our business within tight budgetary controls and in line with our regulatory targets.

Key decisions in the year to demonstrate that decision making has been supported by financial and non-financial information

The Board approved the annual Budget in March 2025. As part of this Budget approval, the Board assessed in-depth financial information on all aspects of the business. In addition, the Board approved a long-term Business Plan and all economic assumptions made within it. The Board assessed the financial impact of numerous scenarios on the Business Plan via a comprehensive set of multi-variance stress tests and mitigating actions to ensure ongoing financial viability should the economic or regulatory environment worsen. In terms of non-financial information, the Board has assessed performance information on a regular basis throughout the year and used this to determine investment decisions for the long-term Business Plan. Key examples of this include investment in technology, energy efficiency and carbon reduction measures and improvement of existing homes.

This year, the Board focused on embedding Our 2030 Plan, particularly through the oversight of the formulation of detailed action plans to underpin delivery. Monitoring of these plans remain a priority for the Board, with a continued emphasis on the six transformational programmes: Data driven decisions; Forward thinking services; Social justice – transforming lives; Sustainable futures; Making places; and, Work and workplace of the future.

This year was also the first year of the official requirement to measure and report on customer satisfaction through Tenant Satisfaction Measures (TSMs). The Board regularly reviewed the TSM information and was pleased to see scores significantly improving over the course of the year.

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Interests of our colleagues

Our colleagues are fundamental to the delivery of our plan and the services that we provide. We aim to be a responsible employer in our approach to the pay and benefits our colleagues receive. The health, safety and wellbeing of our colleagues are primary considerations in the way we do business. We work to attract, develop and retain the best talent, equipped with the right skills for the future. Our people have a crucial role in delivering against our strategy and creating value.

Key decisions in the year that demonstrate protection of colleagues’ interests

The Board was deeply aware of how the current economic climate was impacting colleagues but were mindful of how any salary increase needed to be balanced against affordability and service to customers. During the year the Board worked with unions to award fair and competitive salary uplifts reflecting the current economic climate.

Regular salary benchmarking continues to take place to ensure colleagues’ salaries are in line with industry norms. We invest in pension scheme arrangements, offering a choice of schemes allowing colleagues to select the most appropriate for their circumstances.

In addition, we enhanced our Employer Value Proposition; opening a new reward and recognition scheme and launching a new colleague engagement group, Colleague Connect.

Training on diversity and inclusion has also been provided to support the culture of treating people fairly and a number of lunch and learn sessions have taken place for example on allyship and unconscious bias. A robust policy framework is in place, including policies for code of conduct and health and safety, which protects colleagues. In addition, an independent annual engagement survey is carried out to monitor the ongoing wellbeing of teams across the business. The engagement scores are high, indicating that our approach is in line with its ambition to be an employer of choice and we were proud to be awarded The Times Top 100 employer recognition.

We have a voluntary recognition agreement with three trade unions: GMB, Unison and Unite. It is committed to creating and maintaining positive colleague relations. Local trade union representatives meet regularly with senior leaders via a Joint Negotiating Committee and the Health and Safety Committee.

Business relationships with suppliers, customers and others

We also aim to act responsibly and fairly in how we engage with our suppliers. We depend on the capability and performance of our suppliers, contractors and other partners, such as small businesses to help deliver the products and services we need for our operations and our customers.

Key decisions in the year that demonstrate relationship management with stakeholders

We actively engaged with stakeholders during the year through various channels. whg regularly engages with key partners and stakeholders such as local authority partners, Homes England, regulatory bodies, funders, and trades bodies as a few examples. Developing and maintaining these positive relationships supports access to opportunities to deliver new homes and services. Working in partnership also creates greater capacity and ensures whg remains a partner of choice.

An effective procurement strategy is in place which enables opportunities for suppliers of all sizes to offer their services and ongoing contract management approaches ensure that suppliers receive the level of engagement expected from us as determined by the contractual arrangements. We ensure all contractors have strong sustainability credentials and share similar values.

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Our 2030 Plan is heavily focused on understanding our customers and delivering great service. During the year customers were given the opportunity to influence and contribute to strategic decisions, while the Board gained valuable insight into customers’ views, needs, concerns, and complaints. The Service Improvement Group (SIG) was established consisting of 11 members to provide oversight and evaluation by customers of the services we provide. Building on this foundation, the Board enhanced its focus by regularly reviewing data on complaints and exploring meaningful ways to learn from them, ensuring a proactive approach to improving customer experiences. In addition, Board members regularly meet customers through estate visits, community walkabouts, customer events and through engagement at formal meetings.

Impact on the community and the environment

Our 2030 Plan considered the impact of the Group’s operations on the community and environment and our wider societal responsibilities, and how we impact the regions we serve throughout the Midlands.

Key decisions in the year to demonstrate our impact on the community and environment

We are supporting the government’s ambition for all social housing in England to achieve an Energy Performance Certificate ( EPC ) rating of at least C by 2030 . This included starting work on one of the region’s first net zero neighbourhoods at Dudley Fields in Walsall. This goes beyond the fabric of a home and considers energy infrastructure, engagement with retrofit and what it means to a community to be sustainable.

We continue at pace to refine our business as usual approach to include ESG, articulating how current activities meet environmental and sustainability outcomes and developing new objectives to drive future investment decisions. We now have 176 colleagues trained in carbon literacy and over 12% accredited as carbon literate with the Carbon Literacy Project, becoming sustainability champions and making pledges that align with our sustainability agenda. The ESG working group will continue to meet to provide assurance that sustainability is being managed as a strategic priority across operations and planning. We are among the first in the UK to be certified as a sustainable housing provider by RITTERWALD and a Carbon Literate Bronze organisation.

High standards of business conduct

As the Board of Directors, our intention is to behave responsibly and ensure that management operate the business in a responsible manner, using high standards of business conduct and good governance expected for a business such as ours. The intention is to nurture our reputation, through both the construction and delivery of Our 2030 Plan that reflects our responsible behaviour. We are well run and have tight budgetary controls ensuring we achieve our budgeted targets each year. This provides assurance to our lenders and investors.

Key decisions in the year

We carry out an annual assessment of compliance against regulatory standards and continue to achieve a G1/V1 regulatory grading, as well as C1 in the new Consumer Standard, evidencing high standards of business conduct. We also maintained our A2 credit rating with Moody’s in January 2025. In addition, the assurance framework and three lines of defence model continues to drive a strong internal control environment. There are numerous policies in place for code of conduct, standing orders and financial regulations, fraud and whistleblowing, all of which provide a clearly defined framework for business conduct.

Act fairly between members

As a Registered Provider of social housing, a charity and not for profit organisation, the focus of our activities is to deliver housing and other support services to our customers. We are committed to act

54

fairly and avoid conflicts of interest should they arise.

Key decisions in the year

We carried out an external review which reinforced the positive culture and strong governance arrangements we have in place. During the year we welcomed 2 new Board and Committee members to our governance structure. As well as bringing a wealth of skills and lived experience, our new additions have increased the diversity across our Boards and Committees. The adoption of the NHF Code of Governance 2020 supports the efficacy of the Board acting fairly and supporting the interests of customers and colleagues. Board members act in the best interests of each company they represent ensuring each entity operates within the articles of association.

Statement of Compliance with the SORP

The Board confirms that the Strategic Report has been prepared in accordance with the principles set out in the 2018 Update of the SORP for Registered Social Housing Providers.

Other Information

Where information is not shown within the Report of the Board in accordance with S414c (11) Companies Act 2006 it is instead included within the Strategic Report starting on page 5. This includes the Energy and Carbon report starting on page 40.

Qualifying Third Party Indemnity Provisions

The Directors have third party indemnity insurance through the Group.

Going Concern

The Group has long-term debt facilities in place which provide adequate resources to finance reinvestment in existing homes, together with meeting our targets for new development programmes. The Board approved business plan shows the Group has liquidity in place for at least the next 33 months before refinancing is required to replace expiring debt facilities.

The Group’s forecast covenant performance shows compliance throughout the life of the Business Plan. This is after incorporating the costs of new building safety regulations, EPC spend to support the Government’s target of all homes being at least EPC-C by 2030 and enhanced spend required as a result of expected changes to the Decent Homes Standard. The business plan is regularly tested against shocks and stresses that may negatively affect operating performance and a mitigation strategy exists to deal with such stresses should they materialise to ensure ongoing covenant compliance. The stress testing framework includes low level single variant tests, multi-variant tests and ‘catastrophic’ scenarios. The assumptions used to compile our business plan have been independently reviewed and benchmarked by a third party advisor and the Board concludes that the assumptions are appropriate and reasonable. A monthly business plan outturn is produced with updated income and expenditure profiles and any changes in assumptions such as inflation. Our Golden Rule Framework has embedded within it a process of early warning signs and sets out points at which the Board are notified of any change to covenant forecasts, i.e. those which reduce headroom on covenants to a pre-determined level that is still some way off an actual covenant breach, defined as a ‘trigger point’. Should the monthly business plan outturn lead to activation of a trigger point, the Board would be notified so that potential corrective action can be implemented on a timely basis.

Although there is uncertainty in the operating environment, the current forecasts and projections show that the Group remains financially viable. Should a situation arise that would require additional financing to be raised ahead of approved financial forecasts, the Group has sufficient unencumbered homes to raise such debt, made up of primarily of our historic new build programme.

55

The Group has a very strong liquidity position with £30.3m cash holding at 31 March 2025 and with undrawn revolving facilities of £200m, so the Board is of the opinion that the Group has more than sufficient resources to meet its liabilities as they fall due.

On this basis, the Board has a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, being a period of at least 12 months after the date on which the report and Financial Statements are signed. For this reason, it continues to adopt the going concern basis in the Financial Statements.

Board Statement on the Effectiveness of Internal Control

The Board holds responsibility for establishing and maintaining adequate and effective systems of internal control and for reviewing their effectiveness. The systems of internal control are 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.

In meeting its responsibilities, the Board has adopted a risk-based approach to establishing and maintaining internal controls which are embedded within the day-to-day management and governance process. This approach includes the regular evaluation of the nature and extent of risks to which the Group is exposed.

The process for identifying, evaluating and managing the significant risks faced by the Group is ongoing. This is reflected in every risk report considered at each Board meeting, as well as being the subject of regular review by the Audit and Assurance Committee. The Board is of the opinion that internal control arrangements are effective. The arrangements adopted by the Board in reviewing the effectiveness of the systems of internal control, together with some of the key elements of the control framework, include:

Identifying and Evaluating Key Risks

The Audit and Assurance Committee oversees the Risk Management Framework and the work of internal and external auditors, supported by the Risk Panel, made up of directors with responsibility for the key strategic risks. The Group’s Risk Management Framework approved by the Board, sets out the Group’s appetite for risk in the achievement of its objectives, and underpins risk management, business planning and control arrangements. These arrangements clearly define management responsibility for the identification, evaluation and control of key risks.

The Executive Team regularly considers reports on these risks and the Corporate Director of Governance, Compliance and Communications is responsible for ensuring any significant change affecting key risks is reported to the Committee.

Control environment and internal controls

The processes to identify and manage the key risks to which the Group is exposed are an integral part of the internal control environment. Such processes, which are reviewed annually and revised where necessary, include risk assessments, strategic planning, performance monitoring, control over major spend projects, the setting of standards and compliance with health and safety, data protection, fraud prevention and detection and environmental performance information and reporting systems.

Financial reporting procedures include setting detailed budgets for the year ahead and Business Plan forecasts for subsequent years. These are approved by the Board. Budgets are monitored throughout the year by the Board. In addition, regular reports cover performance in key areas such as rent collection, managing voids, major works and responsive repairs and new development.

Monitoring arrangements to check the effectiveness of internal controls and regular reporting to management, Boards and Committees are part of the control environment. This is complemented by

56

regular reviews by a firm of internal auditors who provide independent assurance to the Board, via the Audit and Assurance Committee. The arrangements include a rigorous procedure, monitored by the Committee, for ensuring that corrective action is taken in relation to any significant control issues.

The Audit and Assurance Committee and Board receive an annual report on internal controls from the Group Chief Executive on behalf of the Executive Team. In addition to reports on specific areas covered by their audit plan, the internal auditors provide an annual report covering the Group as a whole, summing up findings and improvements emerging during the year and proposing future priorities. External auditors provide reports on management and control issues identified during the course of their work. These too are subject to scrutiny by the Audit and Assurance Committee on behalf of the Board.

Fraud Assurance

The work with our internal auditors provides assurance that controls are designed to reduce the risk of fraud and to respond to suspected instances of fraudulent activity. The policies on fraud prevention and whistleblowing address any specific issues arising. These policies are reviewed regularly. We maintain a register of fraud risk, reviewed annually by the Audit and Assurance Committee and undertake fraud awareness training with colleagues. Any material frauds are reported to the Regulator of Social Housing and Charity Commission as required. During the year there were no material frauds. Suspect activity was identified, this was fully and independently investigated and appropriate action has been taken.

Statement of Board Responsibilities

The Board is responsible for preparing the Report of the Board, the Strategic Report and the Financial Statements in accordance with applicable law and regulations. The Companies Act 2006 and the Housing Act 1996 require the directors to prepare Financial Statements for each financial year. Under that law the directors have elected to prepare the Financial Statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity and company law and the Housing Act 1996, the directors must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of the income and expenditure of the Group and the Company for that period. In preparing those Financial Statements, the directors are required to:

The Board and the Executive Team are responsible for keeping adequate accounting records that are sufficient to show and explain the Group’s and the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Company and enable them to ensure that the Financial Statements comply with the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2019. They are also responsible for safeguarding the assets of the Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Board is responsible for the maintenance and integrity of the corporate and financial information included on the Group’s website. Legislation in the United Kingdom governing the preparation and dissemination of Financial Statements may differ from legislation in other jurisdictions.

57

Disclosure of Information to the Auditor

Each Member of the Board has taken all the steps required of them by the Board Members’ duty to exercise due care, skill and diligence in order to make themselves aware of any relevant audit information and to establish that the Group’s auditor is aware of that information.

Auditor

Beever and Struthers acted as our external auditors for 2024/25 and are re-appointed for 2025/26. This report was approved by the Board and authorised for issue on 31 July 2025 and signed on its behalf by:

Gary Moreton Chair of the Board 31 July 2025

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Independent auditor’s report to the members of
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Walsall Housing Group Limited

Opinion

We have audited the financial statements of Walsall Housing Group Limited (the Association) and its subsidiaries (the Group) for the year ended 31 March 2025 which comprise the Consolidated Statement of Total Comprehensive Income, Consolidated Statement of Changes in Reserves, Company Statement of Changes in Reserves, Consolidated Statement of Financial Position, 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 the Association 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 Association’s or Group’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 Strategic Report and the Report of the Board, other than the financial statements and our auditor’s report thereon. The Board is responsible for the other information. Our opinion on the financial statements does not cover the other information and,

59

except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

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 Association 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.

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 the Board

As explained more fully in the Statement of Responsibilities of the Board set out on page 56, 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 and the Association’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 Association or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

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Misstatements can arise from fraud or error and are considered material if, individually or in 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.

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:

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.

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Use of our report

This report is made solely to the Association’s members, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and Section 128 of the Housing and Regeneration Act 2008. Our audit work has been undertaken so that we might state to the Association’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 Association and the Association’s members as a body for our audit work, for this report, or for the opinions we have formed.

Maria Hallows FCA (Senior Statutory Auditor)

For and on behalf of

Beever and Struthers Statutory Auditor and Chartered Accountants

One Express

1 George Leigh Street

Manchester M4 5DL Date: 27 August 2025

62

Consolidated Statement of Total Comprehensive Income for the year ended 31 March 2025

The consolidated Financial Statements on pages 62 to 111 were approved by the Board on 31 July 2025.

Note 2025
2024
£'000
£'000
Group		 2025
2024
£'000
£'000
Company
Turnover
3
Operating expenditure
3
Gain on disposal of property, plant and
equipment
3,6
Movement in fair value of investment
properties
3,15
Share in Surplus from Joint Venture
3,33
Operating surplus
3a,3b
Interest receivable and other income
7
Interest and financing costs
8
Gift Aid
Surplus for the year before tax
Taxation
11
Surplus for the year after tax
Other
comprehensive
income
/
(expenditure):
Remeasurements – Actuarial gain in
respect of pension schemes
26
Derecognition of pension asset
26
Total comprehensive income for the
year		 146,081
135,770
(115,154)
(101,614)
7,720
6,762
25
600
144
316
38,816
41,834
1,502
6,080
(15,922)
(15,406)
-
-
24,396
32,508
19
(114)
24,415
32,394
23,801
14,246
(21,321)
(83,512)
26,895
(36,872)		 145,631
135,493
(115,270)
(101,719)
7,720
6,762
25
600
-
-
38,106
41,136
1,553
6,427
(15,922)
(15,406)
772
956
24,509
33,113
-
-
24,509
33,113
23,801
14,246
(21,321)
(83,512)
26,989
(36,153)

Gary Moreton Chair 31 July 2025

Gary Fulford Group Chief Executive 31 July 2025

The consolidated results relate wholly to continuing activities. The accompanying Notes form part of these Financial Statements.

63

Consolidated Statement of Changes in Reserves for the year ended 31 March 2025

Income and expenditure
reserve
£'000
Balance as at 1 April 2023 297,132
Surplus for the year 32,394
Other comprehensive income/(expenditure) for the year:
Actuarial gain/(loss) in respect of the pension scheme 14,246
Derecognition of pension asset (83,512)
Balance at 31 March 2024 260,260
Surplus for the year 24,415
Other comprehensive income/(expenditure) for the year:
Actuarial gain/(loss) in respect of the pension scheme 23,801
Derecognition of pension asset (21,321)
Transfer to Capital Grant (1,215)
Balance at 31 March 2025 285,940

Company Statement of Changes in Reserves for the year ended 31 March 2025

Income and expenditure
reserve
£'000
Balance as at 1 April 2023 315,366
Surplus for the year 33,113
Other comprehensive income/(expenditure) for the year:
Actuarial gain/(loss) in respect of the pension scheme 14,246
Derecognition of pension asset (83,512)
Balance at 31 March 2024 279,213
Surplus for the year 24,509
Other comprehensive income/(expenditure) for the year:
Actuarial gain/(loss) in respect of the pension scheme 23,801
Derecognition of pension asset (21,321)
Transfer to Capital Grant (1,215)
Balance at 31 March 2025 304,987

64

Consolidated Statement of Financial Position

At 31 March 2025

Note
Fixed Assets
Intangible assets
12
Tangible fixed assets - Housing Properties
13
Tangible fixed assets - Other Fixed Assets
14
Investment properties
15
HomeBuy loans receivable
16
Investment in Subsidiaries
17
Investment in Joint Venture
33
Other Investments
33
Current Assets
Inventories held for sale
18a
Properties held for sale
18b
Trade and other debtors
19
Debtors due in more than one year
20
Investments
Cash and cash equivalents
Creditors:Amounts falling due within one year
21
Net current assets
Pension Asset
26
Total assets less current liabilities
Creditors: Amounts falling due after more than one
year
22
Provisions for liabilities
Defined Benefit Pension provision
26
Other provision
27
Total net assets
Reserves
Income and expenditure reserves
Total Reserves		 2025
2024
£'000
£'000
617
935
776,997
720,989
14,267
13,875
11,680
11,655
107
107
-
-
229
1463
120
20
804,017
749,044
1,924
-
2,056
5,333
12,705
10,649
-
-
2,603
2,702
27,715
47,245
47,003
65,929
(38,942)
(35,208)
8,061
30,721
-
-
812,078
779,765
(524,116)
(518,379)
(196)
(269)
(1,826)
(857)
285,940
260,260
285,940
260,260
285,940
260,260
Group		 2025
2024
£'000
£'000
617
935
796,745
740,565
14,267
13,875
11,680
11,655
107
107
100
100
-
-
20
20
823,536
767,257
-
-
2,056
3,491
16,796
12,764
500
2,821
2,603
2,702
24,499
44,771
46,454
66,549
(38,863)
(35,079)
7,591
31,470
-
-
831,127
798,727
(524,118)
(518,388)
(196)
(269)
(1,826)
(857)
304,987
279,213
304,987
279,213
304,987
279,213
Company

The accompanying Notes form part of these Financial Statements.

The Financial Statements on pages 62 to 111 were approved by the Board and authorised for issue on 31 July 2025 and are signed on its behalf by:

Gary Moreton Chair 31[st] July 2025

Gary Fulford Group Chief Executive 31[st] July 2025

65

Consolidated Statement of Cash Flows for the year end 31 March 2025

Note 2025
£'000		 2024
£'000
Net cash generated from operating activities
29		 63,945 62,739

Cash flow from investing activities
Purchase of tangible fixed assets - housing properties
Purchase of tangible fixed assets - other
Loan from/(to) non-group entity
Investment in non group assets
Repayment of Homebuy Loan
Grants received
Interest received		 (71,575)
(2,115)
2,325
1,300
-
2,337		 (93,600)
(1,351)
4,973
-

30
2,083
2,887
1,613
(66,115) (84,978)
Cash flow from financing activities
Interest paid
Withdrawal from deposits		 (17,459) (17,596)
31,702
99
(17,360) 14,106
Net change in cash and cash equivalents
Cash and cash equivalents at beginning of the year		 (19,530)
47,245		 (8,133)
55,378

Cash and cash equivalents at end of the year		 27,715 47,245

The accompanying Notes form part of these Financial Statements. A reconciliation of net debt is shown in Note 29A.

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Notes to the Financial Statements

1. Legal Status

Walsall Housing Group Limited is a company limited by guarantee, registered under the Companies Act 2006 and is an English registered charity and social housing provider. Walsall Housing Group is a public benefit entity. The Company’s registered office address and principal place of business is: 100 Hatherton Street, Walsall, WS1 1AB.

Walsall Housing Group’s principal activities and the nature of the Company’s operations can be found in the Group profile on page 4. Walsall Housing Group (the Group) comprises the following entities:

Name Incorporation Registration
Walsall Housing Group Limited* Limited by Guarantee Reg. No. 04015633
Registered Provider Reg. No. L4389
Registered Charity Reg. No. 1108779
whg Treasury PLC Limited by Shares Reg. No. 09138070
whg Developments Limited Limited by Shares Reg. No. 07872595
whg Trading Company Limited** Limited by Shares Reg. No. 05407219
Anthem Homes Limited Limited by Shares Reg. No. 10591652
Cricket Close LLP Limited Liability Partnership Reg. No. OC417013
The Woodlands Management Company (Harrowby) Limited by Guarantee Reg No. 097211558
Limited

*Walsall Housing Group Limited also has 50% share (via the Anthem Homes subsidiary) in a joint venture Anthem Lovell LLP (Registration number OC425694). This is not a subsidiary of the Group. ** Walsall Housing Group Limited also has 20% share (via whg Trading Limited subsidiary) in a joint venture Homes for the West Midlands LLP (Registration number OC452327). This is not a subsidiary of the Group.

2. Accounting policies

Basis of Accounting

The consolidated Financial Statements have been prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP) including Financial Reporting Standard 102 (FRS 102) and the Statement of Recommended Practice (SORP): “Accounting by Registered Social Landlords” updated in 2018 and comply with the Accounting Direction for Private Registered providers of Social Housing 2022 (the Accounting Direction). They have been prepared under the historical cost convention, modified to include certain financial instruments and investment properties at fair value.

Monetary amounts in these Financial Statements are rounded to the nearest whole £1,000, except where otherwise indicated.

The Board is satisfied that the current accounting policies are the most appropriate for the Group.

Basis of Consolidation

The consolidated Financial Statements incorporate those of the Company and all its subsidiaries (i.e. entities that the Group controls though its power to govern the financial and operating policies to obtain economic benefits). All Financial Statements are made up to 31 March 2025.

All intra-Group transactions and balances between Group companies are eliminated on consolidation.

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The wholly owned subsidiaries which are consolidated are listed at 1 above.

Joint Ventures

An entity is treated as a joint venture where a member of the Group holds an interest and shares control under a contractual agreement with one or more parties external to the Group. In the Group accounts, joint ventures are accounted for using the equity method. Under this method, where the venture itself is not a parent, the fair value model is adopted, and an equity investment is initially recognised at the transaction price (including transaction costs). Changes in fair value are recognised where it is practicable to do so. Where it is impracticable to measure fair value reliably or without undue cost or effort, the cost model will be used in accordance with the provisions of FRS 102. Dividends and other distributions will be recognised by the subsidiary which has made the investment when received. At group level this will reduce the carrying amount of the investment.

Reduced Disclosures

The individual accounts of Walsall Housing Group Limited have adopted the following disclosure exemptions:

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. The Group financial plan has been subjected to a wide range of stress tests. No significant concerns have been noted and we consider it appropriate to continue to prepare the financial statements on a going concern basis.

Turnover and Revenue Recognition

Turnover represents rental income receivable in the year, grant income, service charges, first tranche Shared Ownership sales and other goods and services supplied in the year (excluding VAT) and the amortisation of Deferred Capital Grant.

Rental and service charge income is recognised from the point when properties under development reach practical completion or otherwise become available for letting, net of any voids. Income from first tranche sales and sales of properties built for sale is recognised at the legal completion of the sale.

Other Income

Interest income is accrued on a time-apportioned basis, by reference to the principal outstanding at the effective interest rate.

Investment income is recognised on an accruals basis.

Intangible Fixed Assets

Intangible fixed assets are stated at cost less accumulated amortisation.

Amortisation is provided evenly on the cost of intangible fixed assets to write them down to their estimated residual values over their expected useful lives. The principal period used for intangible assets

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is seven years.

Tangible Fixed Assets – Housing Properties

Housing properties are properties for the provision of social housing and are principally properties available for rent and Shared Ownership.

Completed housing and Shared Ownership properties are stated at cost less accumulated depreciation and impairment losses.

Cost includes the cost of acquiring land and buildings, and expenditure incurred during the development period. Only the direct overhead costs including interest associated with new developments or improvements are capitalised.

Housing properties are transferred at cost to completed properties when they are ready for letting.

Works to existing properties are capitalised when they either replace a component that has been treated separately for depreciation purposes, or are improvement works that enhance the economic benefits of the asset. Such enhancements can occur if improvements result in any of the following:

Shared Ownership properties are split proportionally between fixed assets and current 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 are included in turnover and related costs charged to operating costs. The remaining element is classed as a fixed asset and included in housing properties at cost, less any provisions needed for depreciation or impairment. Disposals of the second and subsequent tranches are treated as fixed asset disposals in the normal manner and the resultant surplus is shown within “surplus/ (deficit) on disposal of property, plant and equipment”.

Under Shared Ownership arrangements, the Group disposes of a long lease of Shared Ownership housing units to persons who occupy them, at between 25% and 75% of value. The occupier has the right to purchase further proportions at the current valuation up to 100%, except where the lease specifically states that for certain homes restricted to over 55s they can only purchase up to 75%.

Right to Buy and Right to Acquire Disposals

For homes sold through a Right to Buy or Right to Acquire, the disposal net proceeds are included in the surplus on disposal of housing properties in the Statement of Comprehensive Income and become part of the income and expenditure reserve and used towards investment in our core activities. The sales are included as part of our operating surplus.

Voluntary Right to Buy Disposals

For homes sold under the scheme the proceeds will be retained to fund replacement homes. The discount received by the tenant is claimed back from Homes England. We claim back any transaction cost i.e. legal costs and debt associated with the property, and the net cash amount will be held as a designated reserve to fund replacement properties as disclosed in Note 35.

Investment Properties

Investment properties consist of market rent housing properties. These properties are initially measured at cost and subsequently measured at fair value. Changes in fair value are recognised in the Statement

69

of Comprehensive Income.

The Companies Act 2006 requires all properties to be depreciated. However, this requirement conflicts with the generally accepted accounting principle set out in FRS 102. The Board considers that, because investment properties are not held for consumption, but for their investment potential, to depreciate them would not give a true and fair view. If this departure from the Companies Act 2006 had not been made in order to give a true and fair view, the surplus for the financial year would have been reduced by depreciation. However, the amount of depreciation cannot reasonably be quantified because depreciation is only one of many factors reflected in the annual valuation and the amount relating to the depreciation of the property cannot be separately identified.

Government Grants

Government grants include grants receivable from Homes England, local authorities and other Government bodies.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met, and the grants will be received.

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.

Government grants relating to revenue are recognised in income 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 a 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. Previously amortised Social Housing Grant on disposed of properties is credited to the RCGF through a charge to the surplus on disposal.

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 as income. Where individual components are disposed of and this does not create a relevant event for recycling purposes, any grant which has been allocated to the component is released to the Statement of Comprehensive Income upon disposal of the associated property.

Government grants that impose specified future performance-related conditions on the Company are recognised only when these conditions are met. A grant received before the revenue recognition criteria are satisfied is recognised as a liability.

Other Grants

Grants received from other 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.

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Depreciation of Housing Properties

Freehold land or assets under construction are not depreciated.

The Group separately identifies the major components of its housing properties and charges depreciation to write down the cost of each component to its estimated residual value, on a straight-line basis over its estimated useful economic life.

The Group depreciates the major components of its housing properties based on the following:

Building Components Years
Structure / Roofing / Bin Chutes 100 or 125
Windows and Doors 27-30
Kitchens 18-20
Bathrooms 27-30
Central Heating 27-30
Boilers 10-15
Rewiring 22-25
External Wraps 35-40
Aerials 30
Flat Roofing 25
Lifts 25
Sprinklers 25
Solar PV Panels 25
Door Entry Systems 20
Lift Maintenance 10

Impairments of Fixed Assets

An assessment is made at each reporting date of whether there are indications that a fixed asset (including housing properties) may be impaired or that an impairment loss previously recognised has fully or partially reversed. If such indications exist, the recoverable amount of the asset is estimated.

Shortfalls between the carrying value of fixed assets and their recoverable amounts, being the higher of fair value less costs to sell and value-in-use of the asset based on its service potential, are recognised as impairment losses in Statement of Comprehensive Income.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Reversals of impairment losses are recognised in the Statement of Comprehensive Income. On reversal of an impairment loss, the depreciation or amortisation is adjusted to allocate the asset’s revised carrying amount (less any residual value) over its remaining useful life.

Other Tangible Fixed Assets

Tangible fixed assets are initially measured at cost, and subsequently net of depreciation. Expenditure under £500 is not capitalised and is treated as revenue expenditure. Depreciation is provided on all tangible fixed assets, other than freehold land and investment properties, at rates calculated to write off the cost or valuation of each asset to its estimated residual value on a straight-line basis over its expected useful life, as follows:

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Other Assets Years
Office buildings 50
IT 4-15
Furniture & office equipment 10
Motor Fleet vehicles 10
Motor Other vehicles 2-4
Office improvements 4-8

Residual value is calculated on prices prevailing at the reporting date, after estimated costs of disposal, for the asset as if it were at the age and in the condition expected at the end of its useful life.

Properties in the course of construction are carried at cost, less any identified impairment loss. Cost includes professional fees and other directly attributable costs that are necessary to bring the property to its operating condition. Depreciation commences when the properties are ready for their intended use.

Cash and cash equivalents

Cash and cash equivalents include cash at bank and in hand and highly liquid interest-bearing securities with maturities of three months or less.

Borrowing Costs

General and specific borrowing costs directly attributable to the acquisition and construction of qualifying properties are added to the cost of those properties until such a time as the properties are ready for their intended use or sale.

Bond discounts/ premiums are accrued on an amortised cost basis to build up the total discount payable in proportion to the outstanding capital over the life of the bond.

Loan and bond issue costs are deducted from the capital owed and amortised using the amortised cost basis to charge them to income in proportion to the outstanding capital.

Taxation

Walsall Housing Group Limited has charitable status and is registered with the Charity Commission and is therefore exempt from paying corporation tax on charitable activities.

whg Trading Company Limited, whg Developments Limited, whg Treasury PLC, Anthem Homes Limited and Cricket Close LLP are not registered as charities and therefore corporation tax would be provided on taxable surpluses should they arise.

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.

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.

Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors.

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Value Added Tax (VAT)

The Company and the Group are included in a Group VAT registration, which covers Walsall Housing Group Limited and whg Trading Company Limited.

whg Developments Limited and Cricket Close LLP each have separate registrations. whg Treasury PLC, Anthem Homes Limited and The Woodlands Management Company (Harrowby) Limited are not registered for VAT.

The group expenditure is subject to VAT in different ways: -

Interest Payable

Interest is capitalised on borrowings to finance the development of qualifying assets to the extent that it accrues in respect of the period of development if it represents:

Leases

All leases are operating leases and the annual rentals are charged to income and expenditure on a straight-line basis over the lease term.

Colleague Benefits

The costs of short-term colleague benefits are recognised as a liability and an expense.

The cost of any unused holiday entitlement at 31 March is recognised in the period in which the employee’s services are received.

The best estimate of the expenditure required to settle an obligation for termination benefits is recognised immediately as an expense when whg is demonstrably committed to terminate the employment of the employee or to provide termination benefits.

Retirement Benefits

Defined benefit plans

The Group participates in two funded multi-employer defined benefit schemes, the Social Housing Pension Scheme (SHPS) which is administered independently by the Pensions Trust, and the West Midlands Pension Fund (WMPF), a multi-employer scheme with more than one participating employer and administered under the regulations governing the Local Government Pension Scheme (LGPS).

Liabilities relating to our share of the SHPS and LGPS scheme are included on the Statement of

73

Financial Position. Assets are only included up to the extent to which an Asset Ceiling report demonstrated they are recoverable.

The cost of providing benefits is determined using the projected unit credit method and actuarial assumptions are applied to calculate the liabilities with the effect of any changes in assumptions taken through ‘Other Comprehensive Income’.

The net defined benefit liability / asset represents the present value of the defined benefit obligation less the fair value of plan assets out of which obligations are to be settled. Any asset resulting from this calculation is limited to the present value of available refunds or reductions in future contributions to the plan.

The following are recognised in the Statement of Comprehensive Income:

The difference between the interest income / cost calculated on the net plan liability / asset and the actual return on the plan assets is recognised in other comprehensive income.

HomeBuy

The Group operates the HomeBuy scheme, lending a percentage of the cost to home purchasers, secured on the property. HomeBuy loans are treated within these Financial Statements as concessionary loans.

The loans are interest free and repayable only on the sale of the property. No HomeBuy grant has been received by the Company. On a sale, the fixed percentage of the proceeds is repaid. Therefore, no impairment exists at the reporting date.

Financial Instruments

The Group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102, in full, to all of its 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.

Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument and are offset only when the Group currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial Assets

Debtors

Debtors which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price. Trade Debtors are subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

Where the arrangement with a debtor constitutes a financing transaction, the debtor is initially and subsequently measured at the present value of future payments discounted at a market rate of interest

74

for a similar debt instrument.

A provision for impairment of debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in the Statement of Comprehensive Income for the excess of the carrying value of the trade debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in income or expenditure.

Financial Liabilities

Creditors

Creditors payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

Where the arrangement with a creditor constitutes a financing transaction, the creditor is initially and subsequently measured at the present value of future payments discounted at a market rate of interest for a similar instrument.

Borrowings

Borrowings are initially recognised at the transaction price, including transaction costs, and subsequently measured at amortised cost using the effective interest method. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and other similar charges. Commitments to receive a loan are measured at cost less impairment.

Derecognition of financial assets and liabilities

A financial asset is derecognised only when the contractual rights to cash flows expire or are settled, or substantially all the risks and rewards of ownership are transferred to another party, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

Provisions

The Group recognises provisions where it has an obligation at the reporting date as a result of a past event, which it is probable, will result in the transfer of economic benefits and that obligation can be estimated reliably. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

Critical Accounting Estimates and Areas of Judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of

75

assets and liabilities within the next financial year are discussed below.

Defined Benefit Obligation (DBO) – WMPF

Our estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, mortality, discount rate anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses (as analysed in Note 26).

Defined Benefit Obligation (DBO) – SHPS

Our estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, mortality, discount rate anticipation of future salary increases and the roll forward of actuarial information to 31 March 2025. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses (as analysed in Note 26).

All defined benefit obligations are recorded at fair value, all surpluses are subject to a further asset ceiling report to determine the extent to which surpluses are recoverable and therefore can be recorded as an asset in the statement of financial position.

Fair value measurement

We use valuation techniques to determine the fair value of non-financial assets. This involves developing estimates and assumptions consistent with how market participants would price the instrument.

Management bases its assumptions on observable data as far as possible, but this is not always available. In that case management uses the best information available. Estimated fair values may vary from the actual prices.

Fair value measurements were applied to investment properties (Note 15).

Useful lives of depreciable assets

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

Critical areas of judgement

Impairment

On an annual basis we review for potential impairment. An impairment review was carried out which included the impact of failure of three contractors on our development schemes. The detailed assessment concluded that the schemes remain viable.

More generally, we estimated the recoverable amount of our housing properties as follows:

An impairment of £2.6m has been made in relation to The Hollyhedge scheme. This site became distressed following the liquidation of the principal contractor. Further investigation revealed some structural defects on site. Grant has been secured in May 2025 to meet all of the remediation works. The grant has not been recorded as either income or a debtor at 31 March 2025 as the formal award of

76

the grant was not made until May 2025. The proportion of the grant specifically relating to the remediation will be released to the statement of comprehensive income in 2025/26.

Capitalisation of property development costs

Distinguishing the point at which a project is more than likely to continue, allowing capitalisation of associated development costs requires judgement. Where a scheme is unlikely to continue the abortive costs are written off to the statement of comprehensive income.

Fire Safety

We undertake regular fire risk assessments on all of its high-rise and low-rise blocks to ensure compliance with fire safety standards, taking into consideration the specific facts and circumstances of each block we have concluded that no financial provision is required.

77

3a. Particulars of turnover, cost of sales, operating costs and operating surplus

GROUP – continuing activities Turnover Cost of
sales		 Cost of
sales		 Operating
expenditure		 Surplus on
Disposal		 Surplus on
Disposal		 Revaluation
of
Investment
Property


Share in
Surplus from
Joint Venture		 Operating
Surplus
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Social housing lettings 132,646 - (100,873) - - - 31,773
Other social housing activities
First tranche low cost home
ownership sales		 10,434 (9,174) - - - - 1,260
Gain on disposal of property, plant
and equipment		 - - - 7,720 - - 7,720
Charges for support services - - - - - - -
Development costs - - (837) - - - (837)
Other social housing grants 252 - - - - - 252
VAT recoverable 25 - - - - - 25
Other social housing 616 - (317) - - - 299
Impairment of Development Costs - (2,600) - - - (2,600)
143,973 (9,174) (104,627) 7,720 - -
37,892
Activities other than Social
Housing
Non social housing lettings 1,088 - (401) - - - 687
Non social housing grants 227 - (466) - - - (239)
Outright property sale - - - - - - -
Other non social housing 793 - (486) - - - 307
Share in Surplus from Joint Venture - - - - - 144 144
Increase in valuation of Investment
Properties		 - - - - 25 - 25
146,081 (9,174) (105,980) 7,720 25 144 38,816
2024
GROUP – continuing activities Turnover Cost of
sales		 Operating
expenditure		 Disposal of
housing
properties		 Revaluation
of
Investment
Property


Share in
Surplus from
Joint Venture		 Operating
Surplus
£'000 £'000 £'000 £'000 £'000 £'000
Social housing lettings 119,946 - (88,637) - - - 31,309
Other social housing activities
First tranche low cost home
ownership sales		 11,980 (9,867) - - - - 2,113
Gain on disposal of property, plant
and equipment		 - - - 6,762 - - 6,762
Charges for support services - - - - - - -
Development costs - - (1,007) - - - (1,007)
Other social housing grants 977 - - - - - 977
VAT recoverable 182 - - - - - 182
Other social housing 617 - (269) - - - 348
133,702 (9,867) (89,913) 6,762 - -
40,684
Activities other than Social
Housing
Non social housing lettings 1,040 - (604) - - - 436
Non social housing grants 330 - (828) - - - (498)
Outright property sale - - - - - - -
Other non social housing 698 - (402) - - - 296
Share in Surplus from Joint Venture - - - - - 316 316
Increase in valuation of Investment
Properties		 - - - - 600 - 600
135,770 (9,867) (91,747) 6,762 600 316 41,834

78

3b. Particulars of turnover, cost of sales, operating costs and operating surplus

Included within social housing lettings operating expenditure are non-cash amounts that relate to FRS 102 assumptions in respect of the pension funds for ‘current service costs’ and ‘curtailments’ of £2.4m (2024: £2.3m). This non-cash financial assumption is derived by the scheme actuaries.

2025
COMPANY – continuing activities Turnover Cost of
sales		 Operating
expenditure		 Disposal of
housing
properties		 Revaluation
of
Investment
Property		 Operating
Surplus
£'000 £'000 £'000 £'000 £'000 £'000
Social housing lettings 132,646 - (101,042) - - 31,604
Other social housing activities
First tranche low cost home
ownership sales		 10,434 (9,174) - - - 1,260
Gain on disposal of property, plant
and equipment		 - - - 7,720 - 7,720
Charges for support services - - - - - -
Development costs - - (832) - - (832)
Other social housing grants 252 - - - - 252
VAT recoverable 25 - - - - 25
Other social housing 736 - (317) - - 419
Impairment of Housing Properties - - (2,600) - - (2,600)
144,093 (9,174) (104,791) 7,720 -
37,848
Activities other than Social
Housing
Non social housing lettings 1,087 - (401) - - 686
Non social housing grants 227 - (466) - - (239)
Outright property - - - - - -
Other non social housing 224 - (438) - - (214)
Increase in valuation of Investment
Properties		 - - - - 25 25
145,631 (9,174) (106,096) 7,720 25 38,106

79

3b. Particulars of turnover, cost of sales, operating costs and operating surplus continued

2024
COMPANY – continuing activities Turnover Cost of
sales		 Operating
expenditure		 Disposal of
housing
properties		 Revaluation
of
Investment
Property		 Operating
Surplus
£'000 £'000 £'000 £'000 £'000 £'000
Social housing lettings 119,946 - (88,805) - - 31,141
Other social housing activities
First tranche low cost home
ownership sales		 11,980 (9,867) - - - 2,113
Gain on disposal of property, plant
and equipment		 - - - 6,762 - 6,762
Charges for support services - - - - - -
Development costs - - (998) - - (998)
Other social housing grants 977 - - - - 977
VAT recoverable 182 - - - - 182
Other social housing 768 - (270) - - 498
133,853 (9,867) (90,073) 6,762 0 40,675
Activities other than Social
Housing
Non social housing lettings 1,040 - (605) - - 435
Non social housing grants 330 - (828) - - (498)
Outright property - - - - - -
Other non social housing 270 - (346) - - (76)
Increase in valuation of Investment
Properties		 - - - - 600 600
135,493 (9,867) (91,852) 6,762 600 41,136

80

3c. Particulars of income and expenditure from social housing lettings

2025
GROUP
General
needs
housing
Supported
housing and
housing for
older people
Low cost
home
ownership
Total
£'000
£'000
£'000
£'000		 2024
Total
£'000
Rent receivable net of identifiable
service charges
119,166
2,376
3,011
124,553
Service charge income
5,330
462
718
6,510
Amortised government grants
843
- -
843
Other grants
524
216
-
740		 112,370
6,116
1,292
168

Turnover from social housing
lettings
125,863
3,054
3,729
132,646		 119,946
Management
(28,300)
(464)
-
(28,764)
Service charge costs
(6,358)
(644)
(487)
(7,489)
Routine maintenance
(13,098)
(215)
-
(13,313)
Planned maintenance
(24,348)
(399)
-
(24,747)
Major repairs expenditure
(10,021)
(164)
-
(10,185)
Bad debts
(616)
(10)
(7)
(633)
Depreciation of housing properties
(15,106)
(254)
(382)
(15,742)		 (22,986)
(7,272)
(13,381)
(20,347)
(9,604)
(456)
(14,591)





Operating expenditure on social
housing lettings
(97,847)
(2,150)
(876)
(100,873)		 (88,637)
Operating surplus on social
housing lettings
28,016
904
2,853
31,773		 31,309
Void losses
(1,306)
(1,135)
(165)
(6)		 (1,364)

81

3d. Particulars of Income and Expenditure from Social Housing Lettings

2025
COMPANY
General
needs
housing
Supported
housing and
housing for
older people
Low cost
home
ownership
Total
£'000
£'000
£'000
£'000		 2024
Total
£'000
Rent receivable net of identifiable
service charges
119,166
2,376
3,011
124,553
Service charge income
5,330
462
718
6,510
Amortised government grants
843
- -
843
Other grants
524
216
-
740		 112,370
6,116
1,292
168

Turnover from social housing
lettings
125,863
3,054
3,729
132,646		 119,946
Management
(28,306)
(464)
-
(28,770)
Service charge costs
(6,360)
(644)
(487)
(7,491)
Routine maintenance
(13,101)
(215)
-
(13,316)
Planned maintenance
(24,353)
(400)
-
(24,753)
Major repairs expenditure
(10,022)
(164)
-
(10,186)
Bad debts
(616)
(10)
(7)
(633)
Depreciation of housing properties
(15,255)
(256)
(382)
(15,893)		 (22,992)
(7,274)
(13,384)
(20,353)
(9,605)
(456)
(14,741)





Operating expenditure on social
housing lettings
(98,013)
(2,153)
(876)
(101,042)		 (88,805)
Operating surplus on social
housing lettings
27,850
901
2,853
31,604		 31,141
Void losses
(1,135)
(165)
(6)
(1,306)		 (1,364)

3e. Particulars of turnover from non-social housing lettings

2025
2024
£'000
£'000
Group and Company		 2025
2024
£'000
£'000
Group and Company
Market rented housing properties
Garage rents		 751
337		 694
346
1,088
1,040

82

4. Accommodation in management and development

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

GROUP AND COMPANY 2025
Number		 2024
Number
Social housing
General housing:
- social rent
- affordable rent
Supported housing
Low cost home ownership		 18,157
2,703
385
869		 18,122
2,476
345
791
Total owned 22,114 21,734
Leasehold properties 666 666
Total managed 22,780 22,400
Non-social housing
Market rented housing properties		 101 101
Total owned and managed 101 101
Accommodation in development at the year end 390 638
GROUP AND COMPANY 2024
No		 Additions
No		 Disposals
No		 Other
No		 2025
No
Social housing
General housing:
- social rent
- affordable rent
Supported housing
Low cost home ownership		 18,122
2,476
345
791		 113
229
38
87		 (74)
(3)
(1)
(9)		 (4)
1
3		 18,157
2,703
385
869
Total owned 21,734 467 **(87) ** - 22,114
Leasehold properties 666 - - - 666
Total managed 22,400 467 - 87 - 22,780
Non-social housing
Market rented housing
properties		 101 - - - 101
Total owned and managed 101 - - - 101

The Group owns 30 commercial properties (2024:30).

83

5. Operating Surplus

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

2025
2024
£'000
£'000
Group		 2025
2024
£'000
£'000
Company
Amortisation of deferred capital grant
Non government grant
Amortisation of intangible fixed assets
Depreciation of housing properties
Depreciation of other tangible fixed assets
Impairment
Operating lease rentals:
- land and buildings
- vehicles and equipment
Auditor’s remuneration (including non recoverable VAT)
- Fees payable to the Company’s auditor for the audit of
the Financial Statements
- Fees payable to the Company’s auditor for other
services:		 (853)
(1,302)
(216)
(168)
314
459
15,742
14,591
1,638
1,597
2,600
-
55
55
49
56
144
104
7
-		 (853)
(1,302)
(216)
(168)
314
459
15,893
14,741
1,638
1,597

2,600
-
55
55
49
56
129
82
-
-
Total audit services 151
104		 129
82

6. Surplus on disposal of property, plant and equipment

Group and
Company
Included in the Operating Surplus (Note 3) 2025
£'000		 2024
£'000
Disposal proceeds 9,959 9,258
Carrying value of fixed assets (2,062) (2,411)
Other costs of sale (177) (85)
Surplus on disposal 7,720 6,762
Group and Company Group and Company
2025 2024
£'000 £'000 £'000 £'000 £'000 £'000
Proceeds Cost of
Sale
Surplus		 Proceeds Cost of
Sale		 Surplus
AHO/LCHO Staircasing 1,029 (749) 280 1,319 (892) 427
RTB Sales 1,973 (398) 1,575 2,385 (405) 1,980
RTA Sales 4,021 (666) 3,355 4,140 (818) 3,322
Other Housing Property Sales 2,516 (325) 2,191 647 (59) 588
Sale of Other Assets 420 (101) 319 767 (322) 445
Total 9,959 (2,239) 7,720 9,258 (2,496) 6,762

84

7. Interest receivable and similar income

2025
2024
£'000
£'000
Group		 2025
2024
£'000
£'000
Company
Bank interest receivable
Net interest receivable on the net defined benefit
liability
Interest
receivable
from
subsidiaries
and
joint
ventures		 1,502
2,846
-
3,193
-
41		 1,436
2,790
-
3,193
117
444
1,502
6,080		 1,553
6,427

8. Interest and financing costs

2025
2024
£'000
£'000
Group		 2025
2024
£'000
£'000
Company
Financing cost on the net defined benefit liability
Bond and loan interest		 71
12
17,439
17,534
(722)
(843)
356
358		 71
12
17,439
17,534
(722)
(843)
356
358
Premium/discount amortised
Amortisation of issue costs
17,143
17,061		 17,143
17,061
Interest payable capitalised on housing properties
under construction		 (1,221)
(1,655)		 (1,221)
(1,655)
15,922
15,406		 15,922
15,406
Capitalisation rate used to determine the finance
costs capitalised during the period		 4.20%
4.20%		 4.20%
4.20%

Amounts included within the above that relate to the public bond are owed to whg Treasury Plc from the Company.

85

9. Employees

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

GROUP AND COMPANY 2025
No.		 2024
No.
Administration
Development
Housing, support and care		 177
27
558		 168
27
534

Average monthly FTE		 762 729
GROUP AND COMPANY 2025
No.		 2024
No.
Administration
Development
Housing, support and care		 185
28
576		 176
28
552

Average monthly headcount		 789 756
Employee Costs: 2025
£'000		 2024
£'000
Wages and salaries *
Social security costs
Other pension costs		 34,171
3,591
4,619		 30,284
3,148
4,340

Total Employee Costs		 42,381 37,772

The Company’s employees are members of the West Midlands Pension Fund (WMPF) or of the Social Housing Pension Scheme (SHPS). Further information on each scheme is given in Note 26.

The full-time equivalent number of colleagues who received remuneration (which includes basic, pension contributions and benefits in kind expenditure and the note includes the Directors) in excess of £59,999:

2025
No		 2024
No
£60,000 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£90,001 - £ 100,000
£100,001 - £110,000
£110,001 - £120,000
£120,001 - £130,000
£130,001 - £140,000
£140,001 -£150,000
£160,001 - £170,000
£170,001 - £180,000
£180.001 - £190,000
£200,001 - £210,000
£210,001 - £220,000
£230,001 - £240,000
£280,001 - £290,001
£290,001-£300,000		 38
18
10
1
6
4
5
2
2
1
2
1
1
-
1
-
1		 25
15
7
1
4
1
1
1
1
1
-
1
-

1
-

1
-

86

10. Key management personnel

The Directors are defined for the purpose of this Note as the Members of the Board and Executive Directors of the Group, the latter having executive responsibility. This satisfies the definition included in the Accounting Direction for Private Registered providers of Social Housing 2022.

The aggregate remuneration for key management personnel charged in the year is:

GROUP AND COMPANY 2025
£'000		 2024
£'000
Basic salary
Benefits in kind
National Insurance
Pension contributions		 1,240
93
172
93		 1,129
90
157
83
1,598 1,459

The Group Chief Executive is an ordinary member of the West Midlands Pension Scheme. No enhanced or special terms apply. The Group does not make any further contribution to an individual pension arrangement for the Group Chief Executive.

The number of Directors to whom retirement benefits are accruing under defined benefit schemes was 7 (2024: 7).

During the year, the aggregate compensation for loss of office of key management personnel was £nil (2024: £nil).

The emoluments of the highest paid Director, the Group Chief Executive are shown below:

Highest Paid Director 2025
£'000		 2024
£'000
Remuneration
National Insurance
Pension Contribution		 278
36
21		 265
35
20
335 320

Board members Attendance and Emoluments

Board members are paid as follows:

Committee
Audit and Assurance AAC
Customer Service Oversight Committee CSOC
People and Governance PGC
Development Committee DC
Commercial Coterminous Board CCB
Administrative Coterminous Board ACB
Cricket Close LLP CC LLP

For 2025 no members of the Board other than the Chief Executive participate in the Social Housing Pension Scheme or the Local Government Pension Scheme.

87

Board
Committee
2025
2024
Executive and Non-Executive Board Members
£'000
£'000
Attendance
Remuneration		 Board
Committee
2025
2024
Executive and Non-Executive Board Members
£'000
£'000
Attendance
Remuneration		 Board
Committee
2025
2024
Executive and Non-Executive Board Members
£'000
£'000
Attendance
Remuneration
Gary Fulford (Chair ACBs, Member CCBs)
9/9
ACBs 2/3
CCBs 2/4
CC LLP 2/3
Paul O’Driscoll to 30/09/2024
4/5
DC 4/4
Parminder Kaur
8/9
Elisabeth Downes (Chair PGC) to 31/12/2024
7/7
PGC 3/3
Daren Fradgley to 28/02/2024
7/8
CSOC 3/4
Natalia Hill (CSOC Chair)
7/9
CSOC 4/4
Katie Kershaw (CCB Chair)
8/9
CCBs 4/4
Gary Moreton (Chair)
9/9
PGC 4/4
CSOC 4/4
Akshay Parikh (DC Chair)
8/9
DC 7/7
PGC 3/3
Guy Weston (AAC Chair)
7/9
AAC 4/4
DC 5/7
Deborah Walthorne
9/9
AAC 4/4
Ian Shapiro
6/9
PGC 3/4
Craig Varian - joined November 2024
3/4
DC 6/7
Nicola Pease - joined February 2025
2/2
PGC 1/1		 -
4.4
8.2
-
6.9
9.2
9.2
20.4
9.2
9.2
8.2
8.2
6.4
2.3		 -
8.3
6.8
-
8.2
9.2
7.8
20.4
9.2
9.2
6.8
8.2
-
-

Total		 101.8 94.1
Board Expenses
Committee Members Remuneration		 2.2
40.5		 2.6
39.5
Total 144.5 136.2

11. Taxation

Walsall Housing Group Limited is registered as charitable with HMRC and as such benefits from charitable tax exemptions. All other active Group companies including whg Trading Company Ltd, whg Developments Ltd, whg Treasury PLC, Anthem Homes Ltd, Cricket Close LLP and The Woodlands Management Company (Harrowby) Ltd are liable to Corporation Tax.

88

Group
Current tax		 2025
2024
£'000
£'000		 2025
2024
£'000
£'000		 2025
2024
£'000
£'000
UK corporation tax
Total current tax
Deferred tax
-Origination and reversal of timing differences
Total deferred tax		 26 (107)
(107)
(7)
(7)
26
(7)
(7)
Total tax on surplus on ordinary activities 19 (114)
2025
2024
£'000
£'000
Surplus on ordinary activities before tax
Surplus on ordinary activities multiplied by the standard rate of
corporation tax in the United Kingdom of 25% (2024: 25%)
-Exempt charitable activities
Adjustment to tax charge in respect of prior periods		 24,396
6,099
(6,082)
(43)		 32,508
8,127
(8,048)
28
Current tax charge for theyear 26 (107)
Capital allowances in excess of depreciation
Adjustment to closing deferred tax rate		 (7)
-		 (7)
-
Deferred Tax (7) (7)
Company
Current tax		 2025
2024
£'000
£'000
UK corporation tax
Total current tax
Deferred tax
Origination and reversal of timing differences
Total deferred tax		 -
-
-
-		 -
-
-
-
Total tax on surplus on ordinary activities - -
2025
2024
£'000
£'000
Surplus on ordinary activities before tax
Surplus on ordinary activities multiplied by the standard rate of
corporation tax in the United Kingdom of 25% (2024: 25%)
Exempt charitable activities
Capital allowances in excess of depreciation
Adjustment to opening deferred tax rate		 24,509
6,127
(6,127)
-
-		 33,113
8,278
(8,278)
-
-
Current tax charge for theyear - -

89

12. Intangible Fixed Assets

Group and Company IT Software IT Software work in
progress		 IT Software IT Software work in
progress		 Total Intangible
assets
£'000 £'000 £'000
Cost
At 31st March 2024 2,976 31 3,007
Additions - - -
Transfer to Tangible - - -
Projects completed 31 (31)
 -
Disposals (17) - (17)
At 31st March 2025 2,990 - 2,990
Amortisation
At 31st March 2024 (2,072) - (2,072)
Charged in the year (314) - (314)
Released on disposal 13 - 13
At 31st March 2025 (2,373) - (2,373)
Net book value
At 31st March 2025 617 - 617
At 31st March 2024 904 31 935

Amortisation on these assets is apportioned by FTE across all expenditure elements within the Statement of Comprehensive Income.

90

13. Fixed Assets – housing properties

Fixed Assets – housing properties

Group Social
housing
properties
held for
letting		 Social
housing
properties
under
construction		 Completed
Shared
Ownership
housing
properties		 Shared
Ownership
housing
properties
under
construction




Total housing
properties
– housing properties £'000 £'000 £'000 £'000 £'000
Cost
At 31st March 2024 753,350 52,883 67,663 3,436 877,332
Additions -
37,006		 -
11,125		 48,131
Works to existing properties 16,083 10,932 - -
27,015
Interest capitalised -
1,060		 -
161		 1,221
Schemes completed 57,694 (57,694) 11,552 (11,552) -
Components Completed 5,325 (5,325) - - -
Property disposals (1,889) -
(754)		 -
(2,643)
Costs written off (152) (42) (79) -
(273)
Component disposals (2,688) - - -
(2,688)
Impairment of Development Costs -
(2,600)		 - -
(2,600)
At 31st March 2025 827,723 36,220 78,382 3,170 945,495
Depreciation
At 31st March 2024 155,021 -
1,322		 -
156,343
Depreciation charged in year 15,362 -
380		 -
15,742
Released on disposal – properties (652) -
(19)		 -
(671)
Released on disposal – components (2,837) - - 79.00 -
(2,916)
At 31st March 2025 166,894 -
1,604		 -
168,498
Net book value
At 31st March 2025 660,829 36,220 76,778 3,170 776,997
At 31st March 2024 598,329 52,883 66,341 3,436 720,989

Included in the depreciation charge for the year is £316k of accelerated depreciation on components disposed before the end of their useful economic lives (2024: £414k).

Included in the impairment charge for the year is £2.6m which relate to a block of 71 homes under construction that need to be partially demolished and rebuilt due to structural defects (2024: £0k).

91

13. Fixed Assets – housing properties (continued)

Company Social
housing
properties
held for
letting		 Social
housing
properties
under
construction		 Completed
Shared
Ownership
housing
properties		 Shared
Ownership
housing
properties
under
construction		 Total housing
properties
– housing properties £'000 £'000 £'000 £'000 £'000
Cost
At 31st March 2024 773,545 54,611 67,663 3,436 899,255
Additions -
37,329		 -
11,125		 48,454
Works to existing properties 16,083 10,932 - -
27,015
Interest capitalised -
1,060		 -
161		 1,221
Schemes completed 58,361 (58,361) 11,552 (11,552) -
Components Completed 5,325 (5,325) - - -
Property disposals (1,889) -
(754)		 -
(2,643)
Costs written off (149) (42) - 79.00 -
(270)
Component disposals (2,688) - - -
(2,688)
Impairment of Development Costs -
(2,600)		 - -
(2,600)
At 31st March 2025 848,588 37,604 78,382 3,170 967,744
Depreciation
At 31st March 2024 157,368 -
1,322		 -
158,690
Depreciation charged in year 15,513 -
380		 -
15,893
Released on disposal – properties (652) -
(19)		 -
(671)
Released on disposal – components (2,834) -
(79)		 -
(2,913)
At 31st March 2025 169,395 -
1,604		 -
170,999
Net book value
At 31st March 2025 679,193 37,604 76,778 3,170 796,745
At 31st March 2024 616,177 54,611 66,341 3,436 740,565

Assets held in the Company include uplift in the net book value of assets transferred from its subsidiaries arising from the Group restructure in January 2009. This has been eliminated on consolidation.

Housing properties book value net of depreciation comprises

Group Company
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Freehold land and buildings 695,788 649,959 715,536 669,535
Leasehold buildings 1,261 1,253 1,261 1,253
Shared Ownership 79,948 69,777 79,948 69,777
776,997 720,989 796,745 740,565

92

13. Fixed Assets – housing properties (continued)

Expenditure on works to existing properties

Group Company
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Components capitalised 27,015 21,952 27,015 21,952
Amounts charged to
Comprehensive Income		 Statement of 10,185 9,604 10,186 9,605
37,200 31,556 37,201 31,557
Social housing assistance
Group Company
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Total accumulated social housing grant
received or receivable at 31 March 123,450 113,818 125,394 115,762
Recognised
in
the
Comprehensive Income		 Statement of (11,550) (10,812) (13,494) (12,756)
Held as deferred income 111,900 103,006 111,900 103,006
Finance costs
Group Company
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Aggregate amount of finance costs
included
in
the
cost		 of housing 10,133 8,912 10,133 8,912
properties

93

14. Tangible Fixed Assets – Other

Group and Company Offices Furniture
Fixtures and
Fittings		 Computers
& Office
Equipment		 Computers
& Office
Equipment
WIP		 Motor
Vehicles		 Total
£'000 £'000 £'000 £'000 £'000 £'000
Cost
At 31st March 2024 13,455 2,520 4,157 7 2,762 22,901
Additions -
214		 -
1,015		 886 2,115
Projects completed - -
435		 (435) - -
Reclassification to HP - - - - - -
Disposals -
(4)		 (151) -
(113)		 (268)
At 31st March 2025 13,455 2,730 4,441 587 3,535 24,748
Depreciation
At 31st March 2024 (4,020) (2,209) (2,092) -
(707)		 (9,028)
Charged in the year (307) (76) (568) -
(685)		 (1,636)
Reclassification to HP - - - - - -
Released on disposal -
2		 126 -
55		 183
At 31st March 2025 (4,327) (2,283) (2,534) -
(1,337)		 (10,481)
Net book value
At 31st March 2025 9,128 447 1,907 587 2,198 14,267
At 31st March 2024 9,435 312 2,065 7 2,056 13,875

15. Investment properties

Non social housing properties held for letting 2025
2024
£'000
£'000
Group and Company		 2025
2024
£'000
£'000
Group and Company
At 1 April
Additions adjustment
Revaluation		 11,655
-
25		 11,055

-
600
At 31 March 11,680 11,655

The Company owns a portfolio of market rented properties. These properties are accounted for at fair value. The Company used Bridgehouse Professional Valuation Services who undertook a desktop review to establish the current fair value of the properties. The current worth was then adjusted for movements in the property market using the median property price trends for the Walsall area. The methodology produced an estimated valuation of £11.7m at March 2025 (2024: £11.6m). The movements in fair value £25k (2024: £600k) have been recognised in the Statement of Total Comprehensive Income.

94

16. HomeBuy loans receivable

2025
2024
£'000
£'000
Group and Company		 2025
2024
£'000
£'000
Group and Company
At 1 April
Loan repayment		 107
-		 137
(30)
At 31 March 107 107

17. Investments in subsidiaries

Name & type of entity Name & type of entity Company No Place of Registration 31st March
2024		 Additions At 31st
March 2025
whg Treasury Plc 9138070 England & Wales 50,000 - 50,000
whg Developments Ltd 7872595 England & Wales 1 - 1
whg Trading Ltd 5407219 England & Wales 1 - 1
Anthem Homes Ltd 10591652 England & Wales 50,000 - 50,000
Cricket Close LLP OC417013 England & Wales - - -
The
Woodlands
Management
Company (Harrowby) Ltd		 9721558 England & Wales - - -
100,002
 - 100,002

whg Treasury PLC to whg

Allocation basis
Intra-Group transactions		 2025
2024
£'000
£'000		 2025
2024
£'000
£'000
Interest payable
Custodian fees
Management services
Gift aid
Not applicable
Bond interest charge payable
Custodian fees payable
Fixed fee		 10,177
9
20
(21)		 10,053
199
20
(20)
10,185 10,252

There is a £267.7m long term intra-group creditor owed to whg Treasury PLC at the year end (2024: £268.1m).

whg to whg Developments Ltd

Intra-Group transactions
Allocation basis		 2025
2024
£'000
£'000		 2025
2024
£'000
£'000
Interest payable
Management services
Interest charge on loan
Percentage of development costs		 21
151		 22
238

172 260

95

whg Developments Ltd to whg

Allocation basis
Intra-Group transactions		 2025
£'000		 2024
£'000
Recharge of cost of sales
Design & Build
Gift aid
Not applicable		 15,360
(233)		 24,271
(173)
15,127 24,098

There is a £123k net intra-group creditor owed to whg Developments Ltd at the year-end made up of £795k owed to whg Developments Ltd and £672k owed by whg Developments Limited (2024:net creditor £803k). Included in the £672k debt owed by whg Developments Limited is a £500k loan made by whg on 20 December 2012. Interest is charged at 4.5% (2024: 4.5%). Interest amounted to £21k for the year (2024: £22k).

whg to whg Trading Ltd

2025
2024
£'000
£'000
Intra-Group transactions
Allocation basis		 2025
2024
£'000
£'000
Intra-Group transactions
Allocation basis		 2025
2024
£'000
£'000
Intra-Group transactions
Allocation basis
Management services
Percentage of payroll costs		 52 70

whg Trading Ltd to whg

2025
2024
£'000
£'000
Intra-Group transactions
Allocation basis		 2025
2024
£'000
£'000
Intra-Group transactions
Allocation basis		 2025
2024
£'000
£'000
Intra-Group transactions
Allocation basis
Gift aid
Not applicable		 (518) (764)
Intra-Group transactions
Allocation basis		 2025
2024
£'000
£'000		 2025
2024
£'000
£'000
Interest payable
Management services
Interest charge payable
Percentage of payroll costs		 96
37		 421
37
133 458

There is a £1.5m intra-group debtor owed by Anthem Homes Limited at the year end made up of £4m owed by Anthem Homes Limited to whg and £2.5m owed to Anthem Homes Limited by Cricket Close LLP (2024: net debtor £3.9m). The £4m debt owed by Anthem Homes Limited includes a loan made by Walsall Housing Group which was at LIBOR (0.2% for the year) plus 3% up to 31 January 2022 and thereafter at a 5% fixed rate (market rate at the time). The £2.5m debtor includes a loan made to Cricket Close LLP at a 5% market rate. During the year Anthem Homes Limited approved the write off of £300k of interest to Cricket Close LLP.

96

e) During the year the Company had the following intra-Group transactions and year end balances with The Woodlands Management Company (Harrowby) Limited.

whg to The Woodlands Management Company (Harrowby) Limited

2025
2024
£'000
£'000
Intra-Group transactions
Allocation basis		 2025
2024
£'000
£'000
Intra-Group transactions
Allocation basis		 2025
2024
£'000
£'000
Intra-Group transactions
Allocation basis
Management services
Percentage of payroll costs		 7 6

There is a £nil intra-group debtor owed by The Woodlands Management Company (Harrowby) Limited at the year end (2024: £nil).

18a. Inventories held for sale

2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group
Company		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group
Company		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group
Company		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group
Company		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group
Company
Inventories:
Land 1,924 - - -
Total 1,924
-		 - -

The land relates to Cricket Close LLP’s asset.

18b. Properties held for sale

2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group
Company		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group
Company		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group
Company
Shared Ownership Properties
Completed properties
Work in progress		 151
1408
1,905
3,925		 151
1,408
1,905
2,083
Total 2,056
5,333		 2,056
3,491

97

19. Debtors

2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group
Company		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group
Company		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group
Company
Due within one year
Rent and service charges receivable
Less: provision for bad and doubtful debts		 5,489
6,530
(3,681)
(3,421)		 5,489
6,530
(3,681)
(3,421)
1,808
3,109		 1,808
3,109
Deferred tax asset
Other debtors
Prepayments and accrued income
Loan to Anthem Lovell LLP
Amounts owed by Group undertakings		 103
110
446
411
10,348
4,694
-
2325
-
-		 -
-
446
411
10,266
4,582
-
-
4,276
4,662
12,705
10,649		 16,796
12,764

20. Debtors due in more than one year

2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group
Company		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group
Company		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group
Company
Due after one year
Loan to Anthem Homes Limited
Loan to whg Developments Limited		 -
-
-
-		 -
2,321
500
500
- -
500
2,821

21. Creditors: amounts falling due within one year

Group Company
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Trade creditors 8,661 9,716 7,872 8,176
Rent and service charges received in advance 3,597 3,733 3,596 3,727
Social housing grant received in advance 4,852 1,590 4,852 1,590
Other grants received in advance 1,564 2,703 1,564 2,703
Amounts owed to Group undertakings - - 5,933 6,722
Deferred grant income (Note 23) 836 1,376 836 1,376
Corporation Tax 17 107 - -
Other taxation and social security 853 807 850 806
Unpaid contributions for retirement benefits 356 329 356 329
Other creditors 3,066 1,236 3,070 1,236
Accruals and deferred income 15,140 13,611 9,934 8,414
38,942 35,208 38,863 35,079

22. Creditors: amounts falling due after more than one year

98

2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group
Company		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group
Company		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group
Company
Deferred Grant (Note 23)
Debt (Note 24)
Loan Premium and Issue Costs
Recycled Capital Grant (Note 25)
Amounts owing to Group Undertakings
Sinking Funds		 107,628
101,484
395,040
395,040
20,664
21,031
452
575
-
-
332
249		 107,628
101,484
395,040
395,040
20,664
21,031
452
575
38
38
296
220
524,116
518,379		 524,118
518,388

23. Deferred grant income

Deferred Grant includes £373k (2024: £383k) relating to office buildings and £1m (2024: £1.1m) component accounting grant.

Group Company
2025 2024 2025 2024
£'000 £'000 £'000 £'000
At 1st April 102,860 95,566 102,860 95,566
Grant received in the year 6,870 8,737 6,870 8,737
Transfer to RCGF (287) (137) (287) (137)
Grants paid to partners - - - -
Grants recognised as income (126) (4) (126) (4)
Released to income in the year (853) (1,302) (853) (1,302)
At 31st March 2025 108,464 102,860 108,464 102,860
Amounts to be released within one year (Note 21) 836 1,376 836 1,376
Amounts to be released in more than one year (Note 22) 107,628 101,484 107,628 101,484
108,464 102,860 108,464 102,860

99

24. Debt analysis

Group Group Company Company
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Due within one year
Loans - - - -
Total loans within one year - - - -
Due after more than one year
Loans 70,040 70,040 70,040 70,040
Bond 250,000 250,000 250,000 250,000
bLEND 75,000 75,000 75,000 75,000
Total loans due after one year 395,040 395,040 **395,040 ** 395,040
Total loans 395,040 395,040 **395,040 ** 395,040
Payable to external funders 395,040 395,040 145,040 145,040
Payable to Group undertakings - - 250,000 250,000
395,040 395,040 **395,040 ** 395,040

Scottish Widows loan of £70.04m was novated to Rothesay Life on 27 February 2025.

Bank loans and derivatives

During the year there have been no changes.

Bond

The bond monies are lent from whg Treasury PLC on to the parent company Walsall Housing Group Limited under the same terms and so the bond in the company above is therefore owed to the subsidiary, whg Treasury PLC.

The market value of the bond as at 31 March 2025 was £303m (2024: £285m).

Facilities and security

At 31 March 2025 the Group had £200m of agreed but undrawn borrowing facilities available in the form of revolving credit facilities.

The bank loans and the bond are secured by specific charges based on the net book value on the housing properties of the Group in favour of the lenders.

Terms of repayment, interest rates and issue costs

Bank loan repayments are via a mixture of instalments and one-off bullet repayments. The current bond liability is payable in full in 2045.

The £70m of bank loans accrue interest at an average rate of approximately 5.5%. As above, the £250m bond has been issued at a coupon rate of 4.25%.

Gross issue costs for both the bank loans and the bond were £3.7m (2024: £3.6m) and were capitalised in the years in which they were incurred. Amortisation charged in the year was £357k (2024: £358k).

bLEND plc

In October 2020, the Group secured £75m of new funding with an effective rate of 2.267% through the bLEND aggregator on a deferred drawdown arrangement. The price was based on a gilt of 0.787%, a

100

spread of 1.48% and was subject to further annualised bLEND costs of 0.2%. The deal attracted a premium of £11.2m and when the funds were drawn in October 2021 the Group received net proceeds of £84m with the remaining amount held in the loan reserve fund for future interest payments. The upfront fees associated with this deal were £1m and these were capitalised in 2020. The market value of bLEND was £75m.

Based on the lender’s earliest repayment date, borrowings are repayable as follows:

Group Company Company
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Within one year or on demand - - - -
One year or more but less than two years - - - -
Two years or more but less than five years - - - -
Five years or more 395,040 395,040 395,040 395,040
395,040 395,040 395,040 395,040

Interest rate profile

The Group’s debt has a weighted average interest rate of 4.2% (2024: 4.2%) and the weighted average for which it is fixed is the lifetime of the loan.

25. Recycled Capital Grant Fund

Group Company Company
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Opening Balance as at 1 April 575 815 575 815
Inputs to RCGF:
Grant recycled from property disposals 327 147 327 147
Interest accrued 24 31 24 31
Transfers from other PRPs - - - -
Recycling of grant
New Build (474) (418) (474) (418)
Closing Balance as at 31 March 452 575 452 575
Amounts due for repayment Group Company Company
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Within one year - - - -
After more than one year 452 575 452 575
At 31 March 452 575 452 575

101

26. Pension obligations

The Group operates two pension schemes; West Midlands Pension Fund and Social Housing Pension Scheme. Both schemes are funded through payments to trustee-administered funds, determined by periodic actuarial valuations. Both schemes provide defined benefits based on members’ final salary at retirement, death or leaving service.

Pension Asset/ (Liability) Summary Note

2025
£'000		 2024
£'000
WMPF
SHPS		 -
(196)		 -
(269)
Total (196) (269)

West Midlands Pension Fund

The West Midlands Pension Fund (WMPF) is a multi-employer scheme with more than one participating employer and is administered under the regulations governing the Local Government Pension Scheme (LGPS), a defined benefit scheme. Triennial actuarial valuations of the pension scheme are performed by an independent, professionally qualified actuary using the projected unit method. The most recent formal actuarial valuation was completed as at 31 March 2022. WMPF commenced a valuation process on 31 March 2025 and will be effective from 1 April 2026.

The fair value of the scheme assets at 31 March 2025 was £269.9m

When the LGPS benefit structure was reformed in 2014, transitional protections were applied to certain older members close to normal retirement age. The benefits accrued from 1 April 2014 by these members are subject to an ‘underpin’ which means that they cannot be lower than what they would have received under the previous benefit structure. The underpin ensures that these members do not lose out from the introduction of the new scheme by effectively giving them the better of the benefits from the old and new schemes.

The results in this note include an allowance to reflect the Court of Appeal judgement in respect of the McCloud and Sargeant cases which relate to age discrimination within the Judicial and Fire Pension schemes, respectively.

Key Results

The estimated position at 31 March 2025 shows an asset of £104.8m compared with a £83.5m last year. The key reason for this change is the change in funding position of the scheme in the main due to the underlying discount rates.

The employer’s contributions to the WMPF by the Company and Group for the year ended 31 March 2025 were £1.6m (2023: £1.5m). whg received a rebate for the year of £2.5m due to an improved funding position which resulted in the actual rate being 8.2% for the year. The employer’s contribution rate has been fixed as 21.4% of pensionable salaries until 31 March 2025 with a discount of 13.2%.

Early retirements over the year, have resulted in £nil past service cost in the year to 31 March 2025 (2024: £nil). There were £nil (2024: £nil) of other settlements, curtailments, discretionary practices, constructive obligations or other material events during the year.

102

Calculation Method

The figures at 31 March 2025 are based on projecting forward the results of the last formal actuarial valuation of the Fund as at 31 March 2022.

Social Housing Pension Scheme

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

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

The last valuation of the scheme for funding purposes was carried out as at 30 September 2023. This valuation revealed a deficit of £700m; this was previously £1.56b. A Recovery Plan has been put in place with the aim of removing this deficit by 31 March 2028.

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

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

For accounting purposes, the liability figures from each valuation are rolled forward to the relevant accounting dates, if applicable, and are used in conjunction with the company’s fair share of the Scheme’s total assets to calculate the company’s net deficit or surplus at the accounting period start and end dates.

The estimated position at 31 March 2025 shows a current deficit of £196k (2024: £269k).

The number of scheme members employed by the Group at 31 March 2025 was nil (2024: nil). The charge to the Group for the year was £69.5k. (2024: £61k).

The Group also contributes to defined contribution schemes, also with the Social Housing Pension Scheme operated by the Pensions Trust.

Calculation Method

The figures at 31 March 2025 are based on projecting forward the results of the last formal actuarial valuation of the scheme as at 30 September 2023.

Key Assumptions

The key financial assumptions have been based on market assumptions as at 31 March 2025 and have been derived in a consistent manner to last year. This has resulted in the following assumptions:

103

Principal actuarial assumptions
31-Mar-25
31-Mar-24
31-Mar-25
31-Mar-24
Financial assumptions
% per annum
% per annum
% per annum
% per annum
WMPF
SHPS
Group and Company		 Principal actuarial assumptions
31-Mar-25
31-Mar-24
31-Mar-25
31-Mar-24
Financial assumptions
% per annum
% per annum
% per annum
% per annum
WMPF
SHPS
Group and Company		 Principal actuarial assumptions
31-Mar-25
31-Mar-24
31-Mar-25
31-Mar-24
Financial assumptions
% per annum
% per annum
% per annum
% per annum
WMPF
SHPS
Group and Company
Discount rate
Future salary increase rate
Future pension increase rate (CPI)
Inflation assumption		 5.80
4.85
3.75
3.75
2.75
2.75
2.75
2.75		 5.82
4.90
3.79
3.78
2.79
2.78
3.10
3.15

Mortality assumptions

The post-retirement mortality assumptions adopted to value the benefit obligation at March 2025 are detailed below.

2025
2024
2025
2024
£'000
£'000
£'000
£'000
WMPF
SHPS		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
WMPF
SHPS
Retiring today:
Males
Females
Retiring in 20 years:
Males
Females		 20.1
20.2
23.5
23.5
21.5
21.6
25.2
25.2		 20.5
20.5
23.0
23.0
21.7
21.8
24.5
24.4

Amounts recognised in surplus or deficit

2025
2024
2025
2024
£'000
£'000
£'000
£'000
WMPF
SHPS
Group and Company		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
WMPF
SHPS
Group and Company		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
WMPF
SHPS
Group and Company
Current service cost
Admin charges		 3,979
3,906
-
-		 -
-
2
2
Amounts charged to operating costs 3,979
3,906		 2
2
2025
2024		 2025
2024
£'000
£'000		 £'000
£'000
60 (3,193) 11
12
Net interest (receivable)/payable
Amounts within interest and financing costs 60 (3,193) 11
12

Amounts recognised in the Statement of Total Comprehensive Income

2025
2024
2025
2024
£'000
£'000
£'000
£'000
WMPF
SHPS		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
WMPF
SHPS		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
WMPF
SHPS
Re measurements 2,464
(69,266)		 16
(51)
Actuarial gain/(loss) in respect of pension
scheme		 2,464
(69,266)		 16
(51)

104

Amounts recognised in Statement of Financial Position

2025
2024
2025
2024
£'000
£'000
£'000
£'000
WMPF
SHPS		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
WMPF
SHPS		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
WMPF
SHPS
Present value of funded obligations
Fair value of plan assets		 - -
- -
(1,341)
(1,448)

1,145
1,179
Net pension asset/(liability) - -
(196)
(269)

Reconciliation of opening and closing asset value in Statement of Financial Position

2025
2024
£'000
£'000
Group and Company
WMPF
Opening fair value of plan assets
Increase in fair value of plan assets
Closing fair value of plan assets
Impact of Asset Restriction		 83,512
69,266
21,321
14,246
104,833
83,512
(104,833)
(83,512)
Closing value of Assets recognised inSOFP - -

In 2023/24 whg de-recogonised the pension asset relating to WMPF scheme. The current asset value has increased to £104.8m. We have again obtained an asset ceiling report, this views the asset on the basis of recoverability. This report recommends that it would not be prudent to recognise the asset value in the statement of financial position.

Reconciliation of opening and closing balances of the present value of scheme liabilities

2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group and Company
WMPF
SHPS		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group and Company
WMPF
SHPS		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group and Company
WMPF
SHPS
Opening scheme liabilities
Current service cost
Interest cost
Change in financial assumptions
Change in scheme experience
Change in demographic assumptions
Benefits paid
Member Contributions		 188,330
187,587
3,979
3,906
9,117
8,890
(30,005)
(11,477)
(1,539)
(1,130)
(331)
5,348
(5,825)
(6,135)
1,397
1,341		 1,448
1,560
2
2
69
73
(167)
(1)
57
(31)
-
(18)
(68)
(137)
-
-
Closing scheme liabilities 165,123
188,330		 1,341
1,448

105

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

2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group and Company
WMPF
SHPS		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group and Company
WMPF
SHPS
Opening fair value of plan assets
Interest income
Return on plan assets (excess of interest income)
Contributions by employer
Benefits paid
Member contributions		 271,842
255,983
13,107
12,083
(12,140)
7,038
1,575
1,532
(5,825)
(6,135)
1,397
1,341		 1,179
1,290
58
61
(94)
(101)
70
66
(68)
(137)
-
-
Closing fair value of plan assets 269,956
271,842		 1,145
1,179

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

Sensitivity analysis

Sensitivity analysis Change in
assumptions		 Impact £000 Change in
liabilities
Discount Rate decrease of 0.1%
pa		 3,032 Increase by 2%
Rate of Mortality A 1 year increase
in life expectancy		 6,605 Increase by 4%
Rate of salary growth Increase of 0.1%
pa		 220 Increase by 0%
Rate of inflation Increase of 0.1%
pa		 2,893 Increase by 2%

The sensitivities shown above are approximate. Each sensitivity considers one change in isolation. The inflation sensitivity includes the impact of changes to the assumptions for revaluation, pension increases and salary growth where appropriate. The average duration of the defined benefit obligation at the period ended 31 March 2025 is 20 years.

Legal Case Disclosure – Virgin Media v NTL Trustees Ltd (GMP Equalisation)

In 2023, the High Court ruled in the case of Virgin Media Ltd v NTL Trustees II Ltd and Others, confirming that trustees of defined benefit (DB) pension schemes must ensure that past transfer values paid to members include an appropriate adjustment for Guaranteed Minimum Pension (GMP) equalisation. This requirement applies retrospectively to transfers made since 1990.

Impact on whg

The West Midlands Local Government Pension Scheme (WMPF), which is a funded defined benefit scheme.

WMPF have made no additional allowance within the accounting balance sheet for this legal judgement. We have taken this approach because at the time of writing:

106

The Social Housing Pension Scheme (SHPS) – Defined Contribution (DC) section, which is unaffected by this judgment. However whg has historical liabilities in the DB scheme relating to deferred members which may be affected.

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 the Court’s determination expected no earlier than Summer 2025. It is estimated that this could potentially increase the value of the full Scheme liabilities by £155m. We note that this estimate has been calculated as at 30 September 2022 on the Scheme’s Technical Provisions basis. Until the Court direction is received, it is unknown whether the full (or any) increase in liabilities will apply and therefore, in line with the prior year, no adjustment has been made in these financial statements in respect of this.

In addition, the DWP are being asked by pension bodies to look at pragmatic solutions where schemes are unable to evidence historic section 37 confirmation (eg introduce legislation that would allow retrospective section 37 certificates to be produced now to validate historic changes).

whg have made no additional provision for liabilities but will continue to monitor developments and assess its position in conjunction with the scheme administrators.

27. Provisions for liabilities and charges

Group and Company Insurance
claims		 Housing
Disrepair
Claims		 Restructuring
costs		 Leave pay Total
£'000 £'000 £'000 £'000 £'000
At 31st March 2024 514 - 46 297 857
Additions 350 806 206 38 1,400
Utilised (385) - (46) - (431)
Reversals - - - -
At 31st March 2025 479 806 206 335 1,826

Provision is made for insurance claims awaiting final settlement that fall within the self-funding element of the Group’s insurance policies. The settlement can take up to two years.

Provision has been made for housing disrepair claims, including compensation, legal and repair costs in relation to claims which had crystalised in the year.

The restructuring costs provision relates to costs agreed but not yet paid during the year.

The leave pay provision represents holiday balances accrued as a result of services rendered in the current period and which colleagues are entitled to carry forward. The provision is measured as the salary cost payable for the period of absence.

107

28. Share Capital

Walsall Housing Group Limited is a company limited by guarantee. No shares have been issued.

29. Cash flow from operating activities

2025
2024
£'000
£'000		 2025
2024
£'000
£'000		 2025
2024
£'000
£'000
Surplus for the year 24,415 32,394
Adjustments for non-cash items:
Depreciation & Impairment of tangible fixed assets
Amortisation of intangible assets
Pension costs less contributions payable
Government grants amortised in the year		 19,980
314
2,336
(853)		 16,188
459
2,310
(1,306)
Adjustments for investing of financing activities:
Movement in fair value of investment properties
Interest payable
Interest received
Taxation
Dividend from non-group assets		 (25)
15,922
(1,502)
(19)
(1,400)		 (600)
15,406
(6,080)
114
-

Operating cash flows before movements in working capital		 59,168 58,885
Increase in Inventories
Decrease in properties held for sale
Carrying amount of tangible fixed asset disposals
Decrease/(increase) in trade and other debtors
Increase in trade and other creditors
Increase/(decrease) in provisions		 (1,924)
3,277
2,062
358
108
896		 -
824
2,083
(73)
1,399
(379)
Cash generated from operating activities 63,945 62,739

29A. Analysis of changes in net debt

At 1 April Cash Other At 31 March
2024 flows non-cash 2025
movement
£'000 £'000 £'000 £'000
Cash and cash equivalents 47,245 (19,530)
 - 27,715
Investments 2,702 (99)
 - 2,603
Bonds due greater than one year (347,560)
 - 655 (346,905)
Loans due greater than one year (68,511)
 - (288) (68,799)
Total (366,124) (19,629) 367 (385,386)

108

30. Capital Commitments

Group Company
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Expenditure contracted for but not provided for 46,450 54,612 46,450 54,612
Expenditure
contracted		 authorised by the Board, but not 7,401 21,002 7,401 21,002
53,851 75,614 53,851 75,614

The above commitments will be financed as shown in the following table:

Group Company
2025 2024 2025 2024
£'000 £'000 £'000 £'000
Loan financing 45,929 71,327 45,929 71,327
Affordable housing grant 7,454 3,607 7,454 3,607
Other government grant 468 680 468 680
53,851 75,614 53,851 75,614

31. Contingent assets/liabilities

The Group and Company had no contingent assets at 31 March 2025 (2024: £nil).

The Group receives capital grant from Homes England, which is used to fund the acquisition and development of housing properties and their components. In certain circumstances upon disposal of grant funded properties, the Group is required to recycle this grant by crediting a Recycled Capital Grant Fund.

32. Leasing commitments

The total future minimum lease payments under non-cancellable operating leases are as set out below. Leases relate to land and buildings, aerials, vehicles and office equipment.

2025
£'000		 2024
£'000
Within one year
Between two and five years
Over five years		 79
173
-
79

5
-
252 84

109

33. Related parties

Walsall Housing Group Limited is the parent company of the Group. It is registered with Companies House, the Charity Commission and the RSH and is a company limited by guarantee. Its wholly owned subsidiaries and joint venture are set out below.

Wholly Owned Subsidiaries

Joint Ventures

110

It is accounted for by using the equity method of accounting. The Group’s investment was £229k at the 31 March 2025 (2024: £1,463k). We recognise our share of the profit or loss through the Statement of Comprehensive Income. Walsall Housing Group Ltd has recognised £144k in 2024/25 (2023/24: £316k) in respect of its share of profit in relation to open market sales.

Other Investments

All entities are incorporated in England and Wales.

The intra-Group transactions which took place during the year between the parent undertaking and its subsidiaries are detailed within Note 17.

34. Financial assets and liabilities

The Board policy on financial instruments is explained in the Strategic Report, as are references to financial risks. The Group’s principal financial instruments comprise bank loans and other borrowings and cash and short-term deposits. The main purpose of these financial instruments is to raise finance for the Group’s operations. The Group has various other financial assets and liabilities such as trade receivables and payables, which arise directly from its operations.

Categories of financial assets and financial liabilities

FINANCIAL ASSETS

Financial assets measured at amortised cost

2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group
Company		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group
Company		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group
Company
Net Rent Debtor
Other Debtors
Accrued Income
Amounts owing by Group undertakings
Cash and cash equivalents
Current Investments		 1,808
3,109
446
411
6,218
1,856
-
-
27,706
47,245
2,603
2,702		 1,808
3,109
446
411
6,218
1,856
2,841
5,645
24,489
44,771
2,603
2,702
Total Financial Assets 38,781
55,323		 38,405
58,494

111

FINANCIAL LIABILITES

Financial liabilities measured at amortised cost

2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group
Company		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group
Company
Loans and bond
Trade Creditors
Accruals
Amounts owing to Group undertakings
Other Creditors
Sinking Funds		 415,704
416,070
8,661
9,716
15,102
13,590
-
-
3,066
1,236
332
249		 415,704
416,070
7,872
8,176
9,896
8,393
5,970
6,760
3,069
1,236
296
220
**Total ** 442,865
440,861		 442,807
440,855

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
2025
2024
£'000
£'000
£'000
£'000
Group
Company		 2025
2024
2025
2024
£'000
£'000
£'000
£'000
Group
Company
Expiring
between one
and
two
years
–
revolving credit facility
Expiring in more than two years – revolving
credit facility		 -
-
200,000
200,000		 -
200,000
200,000
200,000
200,000		 200,000
200,000

35. Reserves

The Group took part in the Midlands pilot of a Voluntary Right to Buy scheme between 2019 and 2020, it created a designated reserve for the net proceeds plus discount reclaimed from Homes England less the amount of debt repaid. This designated reserve will be used to fund the one for one replacement of housing property. The reserve now stands at £2.4m.

General
Reserves
Designated
Reserves
£'000
£'000
Group
General
Reserves
Designated
Reserves
£'000
£'000
Company
At 31st March 2024
Total comprehensive income for the year
Transfer from designated reserve
Transfer to designated reserve
Transfer to deferred grant		 256,756
3,504
26,895
-
1,215
(1,215)
(126)
126
(1,215)
-		 275,709
3,504

26,989
-
1,215
(1,215)
(126)
126

(1,215)
-
At 31st March 2025 283,525
2,415		 302,572
2,415

112