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← Empowering People Inspiring Communities Limited

2025-03-31-accounts

ANNUAL ACCOUNTS 2024-25

Company Number: 3333405

Putting people at the heart of everything we do BURGUNDY GROVE

Empowering People Inspiring Communities Limited Annual Report & Financial Statements For the year ended 31 March 2025

Charity Number: 1118644 Company Number: 3333405 Regulator of Social Housing Number: L4167

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Contents

Page Page
3 Chair and Chief Executive’s Foreword
4 Board of Trustees, Executive Officers, Company Information
6 Report of the Board
11 Strategic Report
23 Independent Auditor’s Report
27 Statement of Comprehensive Income
28 Statement of Financial Position
29 Statement of Changes in Reserves
30 Statement of Cash Flows
31 Notes to the Financial Statements

2

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Board of Trustees, Executive Officers, Company Information

The social housing sector continues to come under scrutiny and face significant reputational and financial challenges. The economic environment is still creating challenges for organisations and tenants alike.

EPIC continues to gain momentum and strength across all its activities and successfully regained its Governance G1 rating with the Regulator of Social Housing’s Regulatory Judgement in July 2025. This, along with the accompanying Consumer C1 and Viability V2 rating shows just how far EPIC has come in recent years. Through our culture of continuous improvement, we will continue to focus on the gains we have made and look towards the future with positivity and ambition for the organisation, colleagues, tenants and communities.

Despite financial constraints, we have made substantial investment in tenants’ homes to meet the quality and building safety commitments required; and we continue to increase our financial capacity to do more over future years. We have worked hard to increase the information we hold on tenants’ homes to be able to adapt our services according to specific needs. We are committed in our proactive approach to dealing with damp and mould ensuring tenants’ health and safety at all times and homes that are warm and well-maintained.

The Social Housing Regulation Act places a strong focus on the quality of social housing and services provided to tenants and EPIC has been pro-active in ensuring that we are both compliant with the Act but also pragmatic in what we can achieve and enhancing services where possible.

Our Corporate Plan, “Community, connecting, and collaboration” (2024-27) articulates our commitment to working together with tenants and the wider communities. The Plan moves EPIC forward beyond regulatory compliance to truly understanding and meeting the needs and aspirations of tenants. We want them to feel safe in their homes and the wider community and recognise that we are an organisation that truly wants to listen to understand their needs.

We have made significant progress on the way in which we do business, through increasing the capacity and capability of our colleagues to meet the needs of tenants and also the work we have done in ensuring that our technologies support the services to tenants and do not expose EPIC to any potential security threat.

Our organisation continues to be well governed, endorsed by the recent Regulatory Judgement. We expect the organisation to go from strength to strength, delivering even better services to tenants and working alongside others in the community.

Simon Wilson Chair of the Board 18 September 2025

Tracey Johnson Chief Executive Officer 18 September 2025

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Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Board of Trustees, Executive Officers, Company Information

Board
Trustee		 Date
Joined/
Resigned		 Date
Joined/
Resigned		 Other
Committee
Membership		 Membership
Meeting Attendance		 Meeting Attendance Meeting Attendance
Attended Total %
No. No. Attendance
Simon
Wilson		 B Chair Apr 23 Apr 23 GRC 6(B)/3(G) 9 100%
Rob Emery MRC May 20 May 20 n/a 6(B) 6 100%
Nick Leggett Nick Leggett Mar 20 Mar 20 ARAC/GRC 5(B)/3(A)/3(G) 12 92%
Rachel
Challinor		 Oct 21 Oct 21 GRC 6(B)/3(G) 9 100%
Amandeep
Jhawar		 Nov 21 Nov 21 ARAC 5(B)/2(A) 9 78%
Dave
Newmarch		 Oct 21 Oct 21 n/a 5(B) 6 83%
Colin Small Nov 21/Sept
24		 Nov 21/Sept ARAC 3(B)/2(A) 5 100%
Margaret
Dodwell		 A Chair Apr 23 Apr 23 ARAC 5(B)/3(A) 9 89%
Alun Bragg Apr 23 Apr 23 ARAC 6(B)/3(A) 9 100%
Jonathan
Moore		 G Chair Apr 23 Apr 23 GRC 5(B)/3(G) 9 89%
Rob Morton Feb 24 Feb 24 ARAC 5(B)/3(A) 9 89%

Key:

B Board Meeting

B Chair Board of Trustee Chair

ARAC Audit and Risk Assurance Committee

A Chair Audit and Risk Assurance Committee (ARAC) Chair

A Audit and Risk Assurance Committee Meeting

GRC Governance and Remuneration Committee

G Chair Governance and Remuneration Committee (GRC) Chair

G Governance and Renumeration Committee Meeting

MRC Member responsible for Complaints

4

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Board of Trustees, Executive Officers, Company Information

Chief Executive T Johnson
Director of Housing C Gleghorn
Director of Asset Management &
Building Compliance		 J Parkes
Changes
Director of Corporate Services D Glass In post to 05.08.24
Head of Business Support Services K Heath In post to 05.08.24
Director of Resources S Shaw Appointed 05.08.24
Company Information
Registered Office 131-141 Ubberley Road, Bentilee, Stoke on Trent,
Staffordshire, ST2 0EF
Company Secretary S Shaw
Company No. 3333405
Charity No. 1118644
Regulator of Social Housing L4167
Registration No.
Auditor Beever and Struthers, The Beehive Lions Drive, Shadsworth
Business Park, Blackburn, BB1 2QS
Bank The Co-operative Bank plc, Birmingham Commercial Banking
Centre, 118-120 Colmore Row, Birmingham, B3 3BA
Key lender Triodos Bank, Deanery Road, Bristol, BS1 5AS

5

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Report of the Board

The Board presents its report and the audited financial statements for the year ended 31 March 2025.

Principal activities

Empowering People Inspiring Communities (EPIC) is a charitable registered provider of social housing and is governed by a Board of Trustees consisting of 10 trustees. We are a communitybased housing association managing 1,375 homes across Bentilee, Hanley and Meir areas of Stoke-on-Trent. The vast majority of our homes are for social housing residents, as well as a small number (26) of leasehold properties. Full details of the stock and tenure is shown in Notes 3 and 4 of these financial statements.

Board and governance

The Board of Trustees are remunerated for their service. Board payment was introduced in April 2023 and is due for review in April 2026 as part of a three-year review cycle. Details of the payments made to the trustees can be found in note 7. The Board comprises of a minimum of 5 and a maximum of 12 trustees (including any co-optees that may be in place from time to time). The Chair of the Board is appointed by the Board. The Board trustees who have served during the period are shown on page 4.

Our Executive Officers are listed on page 5; they are not trustees of the Board. They act as an Executive within the authority delegated to them by the Board, as set out in EPIC’s Control Framework. The remuneration of the Executive team, along with details of the highest-paid officer, is detailed in Notes 7 and 8 of these financial statements.

The Board has ultimate responsibility for the governance of the Company. The Board’s central role is to direct the organisation’s work; that is to determine strategic direction. The Board agrees frameworks, strategies and policies and makes decisions on all matters that might create significant financial or other risk to the Company; or which raise material issues of principle. Operational delivery, leadership and management is delegated to the Executive Team.

Committee structure

The main Board is supported by 2 committees - the Audit & Risk Assurance Committee (ARAC) and the Governance and Remuneration Committee (GRC).

Scheduled Meetings during the year ended 31 March 2025 Scheduled Meetings during the year ended 31 March 2025
Board 6
Audit Risk and Assurance Committee (ARAC) 3
Governance and Remuneration Committee 3

Incorporated into the number of Board meetings above was a full day of dedicated time for strategic and generative discussions (December 2024). The topics discussed included a review of progress against the corporate plan, EPIC’s approach to risk management (including the sector risk profile and risk appetite), hearing the voice of the tenant through engagement and influencing activities, and a focus on the budget and Long-Term Financial Plan.

In addition, an extra unscheduled meeting was held in year, at the Board of Trustees request, to further discuss and finalise the assumptions and stress testing scenarios to be included within the Long-Term Financial Plan in January 2025.

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Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Report of the Board

Board effectiveness and board learning and development has been in-train since November 2022, working with an independent third party, The Connectives, culminating in observation of Board for validation and verification of board’s effectiveness over that time, including:

The draft Board annual learning and development plan was presented to the Board in February 2025 and the final version incorporating links to the appraisal outcome and skills and competencies self-assessment in Q4 2024-25 was presented to the GRC in in May 2025.

Appointment of Board Trustees

Trustees are appointed for three-year terms. The standard period of service is six years, with annual extensions permissible to a maximum of nine years. Service agreements are in place for all trustees.

Board of Trustees skills, quality & experience

Trustees collectively possess the qualities and skills to take decisions and monitor performance. Collectively the Board brings experience and understanding of a broad range of topics including, but not limited to, finance, tenants' issues and local housing need. An annual process of collective appraisals is in place, with a biennial cycle of individual board appraisals, together with a skills matrix to ensure that the ongoing collective experience and behaviours is considered and aligned to succession planning.

Board of Trustees Code of Conduct

Trustees have an obligation to ensure that their private or personal interests do not influence their decisions or compromise their ability to always act in the best interests of EPIC and those whom it seeks to serve. They must not use their position to obtain personal gain of any sort.

Employees

EPIC is committed to ensuring than an effective framework for colleague engagement and communication is in place and that information on matters that concern them is effectively managed and communicated through regular briefings and supported by an established Staff Focus Group. The organisation does not recognise trade unions.

EPIC is committed to Equality, Diversity and Inclusion and full and fair consideration is given to applications for employment made by all people, having regard to their particular aptitudes and abilities. The number of staff that would recommend EPIC as a great place to work was 96%, and 100% were happy with their role and the number expected to be at EPIC in 2 years was 97%.

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Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Report of the Board

Health and Safety

The Board is aware of and takes seriously its responsibilities on all matters relating to health and safety. EPIC has prepared detailed health and safety policies and provides training both to colleagues and to the Board on health and safety matters.

Internal controls assurance

The Board acknowledges its overall responsibility for establishing and maintaining the whole system of internal controls at EPIC and for reviewing its effectiveness.

The system of internal control is designed to manage, rather than eliminate, the risk of failure to achieve the business objectives, and to provide reasonable assurance against material misstatement or loss.

Following the recent regulatory inspection, EPIC has been graded Governance G1. The improvements made by EPIC over the last few years, in respect to its governance and management of its system of internal controls, have been pivotal in securing the fully compliant result.

EPIC’s control framework comprehensively details the following areas:

The Audit and Risk Assurance Committee (ARAC) and the Governance and Remuneration Committee (GRC) have met regularly through the year and have supported the Board effectively through the discharge of their responsibilities as documented in their approved Terms of Reference.

Further improvements have been made to the Strategic Risk Register with a number of risks being consolidated or discharged during the year. Further work has also been done to evidence operational risk management processes throughout the organisation.

The Board has received regular reports on progress against the Corporate Plan, financial and operational outcomes, health and safety compliance and complaints monitoring. A robust strategic and business planning process is in place with approved assumptions, stress testing and forecast outturns. Potential mitigations have been identified for deployment should issues materialise.

A series of self-assessments has taken place; including the Consumer and Economic Standards, the Complaints Handling Code and the NHF Code of Governance 2020, which was adopted in this financial year (August 2024).

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Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Report of the Board

EPIC’s out-sourced internal audit provider, TIAA, has continued to deliver on the plan agreed with the ARAC which focuses on key areas of risk to EPIC, together with those identified in the Sector Risk Profile. ARAC reviews reports from internal audit, from management and from the statutory auditors, and reports regularly to Board on the extent to which internal controls continue to take account of the nature of risks facing EPIC. A formal process exists for the reporting and implementation of significant control weaknesses and outstanding actions.

The outsourced internal audit programme and the processes and report resulting from the statutory audit of EPIC’s financial statements are important sources of assurance to ARAC that internal controls are in place and operating effectively. Risk based audit plans for both services are developed, with organisational input, at the start of each financial year.

The Board has received ARAC’s annual report and has conducted an annual review of the effectiveness of internal controls. No weaknesses were found in the internal controls sufficient to cause material misstatement or loss and the system of internal controls operated throughout the year and to the date of signing of the financial statements.

EPIC has high standards of openness and honesty and has in place procedures to minimise the risk of fraud and measures for responding should it occur.

This is further evidenced in the internal audit annual report for 2024-25 from the Head of Internal Audit, TIAA, which states: “TIAA is satisfied that, for the areas reviewed during the year, EPIC has reasonable and effective risk management, control, and governance processes in place.”

Continuous improvement and embedding all that has been achieved in 2024-25 will remain a core focus for 2025-26, alongside working with the Board, Regulator of Social Housing, and staff to enhance and improve on service delivery and improvements to the quality of tenants’ homes in line with the Corporate Plan.

During the financial year ending 31 March 2025, no significant internal control failings or weaknesses were identified by the Board, Audit & Risk Assurance Committee, Governance and Remuneration Committee or EPIC’s internal or external auditors.

The Board considers that a suitable framework of internal control was in place and operating effectively throughout the 2024-25 financial year.

Donations

No donations were made during the year – £Nil (2024: £Nil).

Directors’ and Officers’ Insurance

EPIC’s trustees and officers have personal liability insurance through the organisation’s company insurance. Cover was in place throughout the year, and no claims were made.

Provision of information to the Auditor

The trustees of the Board, in attendance at the meeting on the date of approval of these financial statements, have confirmed, as far as they are aware, that there is no relevant audit information of which the auditor is unaware. Each of the trustees of the Board have confirmed that they have taken all the steps that they ought to have taken as trustees of the Board in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

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Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Report of the Board

Independent Auditor

Beever and Struthers were re-appointed as auditor at the Board Meeting in September 2024. They have confirmed their willingness to continue in office on a rolling 12-month basis subject to appropriate reviews.

Approval

The report of the Board was approved by the Board on 18 September 2025 and signed on its behalf by:

Simon Wilson Chair of Board

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Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Strategic Report

Introduction

The Board presents its Strategic Reporting, containing the Operating and Financial Review and value for money statement, for the year ended 31 March 2025.

Overview and background

EPIC owns and manages 1,375 homes for tenants across North Staffordshire with properties in Stoke on Trent, Newcastle-under-Lyme and the Staffordshire Moorlands. In July 2025, as a result of a regulatory inspection by the Regulator of Social Housing our Governance rating was upgraded to G1, we received our first grading against the Consumer Standards, C1 and maintained our Viability rating of V2. These gradings represent the continuous improvement that EPIC has been on since 2021 and are a positive reflection of the organisation.

EPIC’s capacity and capability has further evolved during 2024-25 with additional investment in resources, increasing staff numbers in areas of the business to continue to build on the improvements made, including tenant engagement/influence, data/information governance, front-line housing and asset colleagues.

Like others in the sector, EPIC faces challenging decisions and continually seeks to achieve value for money, prioritising our activities to bring about positive outcomes on tenants. The cost-ofliving crisis continues to impact tenants and the wider communities and the services and the work that we do in collaboration with our partners is focussed on support and mitigation wherever possible.

Our financial resilience is strengthening, and our organisational culture is positive with tenants at the heart. The co-creation of our 2024-27 Corporate Plan drives a continued focus on tenants’, their homes and the wider communities. We are positive that with continued focus and controls in place, our aim to remain as a strong and independent organisation is achievable. This is underpinned by the July 2025 Regulatory Judgement from the Regulator of Social Housing, details here: Empowering People Inspiring Communities Limited (L4167) - Regulatory Judgement: 30 July 2025 - GOV.UK

Tenants’ homes

Across the profile of tenants’ homes, we have 1,375 properties that we own and manage, with a further 26 leaseholders who have exercised their Right to Acquire or Right to Buy (RTA / RTB). Over a quarter of the properties are made up of family sized homes and there is an offer of a mix of houses, flats and bungalows.

Property Profile (including leaseholders):

1 bedroom flat 261
1 bedroom house 5
1 bedroom bungalow 4
2 bedroom flats 748
2 bedroom house 177
2 bedroom bungalow 29
3 bedroom house 171
3 bedroom bungalow 1
4 bedroom houses 5
Total 1,401

There is a continued demand for the properties that EPIC owns and manages and affordability in comparison to the local housing allowance and private rented sector remains positive.

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Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Strategic Report

Allocations

On average EPIC turned over around 8% of its stock annually. In 2024-25 100 empty properties were returned (2023-24, 98, and in 2022-23, 109). During 2024-25 we suspended the waiting list to new applicants due to the high volumes already active. We are in the process of reviewing the Allocations Policy to ensure we are focusing on housing those most in need. Approximately 50% of properties allocated have been to Stoke on Trent City Council as part of EPIC’S nominations agreement with them.

The time taken to make ready an empty home for a new tenant was 28 days in 2024-25. We experienced a greater variation in the cost and level of required refurbishments for properties returned in the year, which led to a wider variation in individual empty property turnaround times. The achievement of the 28-day target has been achieved through collaboration between the Housing and Asset Management Team and the Void Repairs contractor. Whilst rent loss is slightly up on 2024 this is mainly due to the higher rent charges due to the 7.7% annual increase.

Tenant Engagement and Influence

The level of engagement and influence with, and from, tenants has significantly expanded over the past 12-18 months. Capturing of tenant engagement and influence is critical to be able to triangulate with the wider knowledge of tenants (age, sex, ethnicity) but also to underpin decision-making. EPIC’s Engagement and Influence Log has been developed to support this and capture key information such as number of campaigns, number of tenants involved and outcomes as a result. The Log also captures lessons learned from dealing with complaints.

Tenant Ambassadors continue to work alongside EPIC staff, with recent discussions including EPIC’s Allocations Policy, Complaints and Compliments for 2024/25 and the Renters Right Bill. A Tenant Ambassador attended the TPAS Midlands Regional Event in April 2025; along with three members of staff and two board trustees. We continue to hold quarterly Community Voice events, attended by the Chief Executive, Director of Housing Management and at least one Board Trustee. Two additional Tenant Ambassadors were recruited following the event in May 2025. Over 202425, a total of 18 tenants attended Community Voice sessions, providing great insight, sharing personal and wider community concerns and a growing confidence in the services delivered by EPIC.

Tenant usage of Housing Perks continues to increase. By the end of the year, tenants had used 905 vouchers, spending a total of £60,787 and saving £2,802. Vouchers have also been effectively distributed through campaigns, such as the School Shoes Campaign, which issued 77 vouchers. In 2024-25, EPIC issued a total of 98 vouchers for utilities and food worth £4,700 from the Tenancy Sustainment Budget. The actual cost to EPIC was £4,530, resulting in value-for-money savings of £170.

Tenant Satisfaction Measures

2024-2025 saw the second year of the Regulator of Housing’s (RSH) Tenant Satisfaction Measures. EPIC used the services of Acuity Benchmarking to conduct the Annual Tenant Engagement survey to gather tenant perception measures and took the opportunity to ask tenants whether or not they believed their homes were suffering from damp and mould. Everyone who shared their details with us, who raised concerns with us, were contacted and visits were carried out to investigate and rectify any issues raised.

EPIC had 525 responses to the survey, exceeding the required 302 responses for the survey results to be relied on. At a high level, the survey showed that in line with 2023-2024 eight out of ten tenants, 81% were satisfied with the overall service provided by EPIC. The number of tenants that were satisfied that they were treated fairly and with respect increased from 81% to 85%. Overall, the results were very positive with the lowest score associated with the satisfaction of EPIC’s handling of complaints which was 42%. We continue to learn from complaints and have a dedicated Board Trustee, our Member Responsible for Complaints (MRC), that scrutinises all complaints, responses and outcomes for tenants and lessons learned.

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Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Strategic Report

Working with others

We have continued our engagement and partnership working with other organisations. We recognise that as a small landlord EPIC does not have capacity and resources to fully support tenants across the variety of their needs, but other people that we work with can help tenants to sustain their tenancy and also to provide the additional support they may need to thrive.

We are involved in a number of best practice and information sharing groups, including, Financial Inclusion/Welfare Reform; Anti-Social Behaviour; and Case Review Panel. We are also involved with Stoke on Trent City Council’s Tenant Voice to share knowledge, information, and best practice on tenant scrutiny and progress. Partnership engagement via Making Great Places campaign (Bentilee only) – led by City Council ASB team & involving Police & other support agencies.

We opened a Resource Room at our Ubberley Road offices – free to use by partners providing advice and support for tenants and residents and the wider community as well as tenants. We have also created, and are using, an Advice & Support directory – a log of local support agencies that colleagues can call upon/refer tenants to for support on specific issues.

In September 2024, EPIC hosted a multi-organisation Stakeholder Event with representatives from circa 40. Organisations. This enabled rich discussions and exploration on what matters in the communities in which we work and how better we could all work together with improved collaboration. As relationships continue to deepen and develop, this is starting to show positive outcomes for all.

Social Housing (Regulation) Act 2023

The Social Housing (Regulation) Act 2023 become law on 25 July 2023, providing the Regulator with the additional powers needed to deliver an enhanced consumer regulation role. In April 2024, the Regulator changed and introduced a stronger and more active regulation of the consumer standards. EPIC completed its self-assessment in 2024 which confirmed that EPIC was compliant. In November 2024, third party consultants provided an independent review of EPIC’s selfassessment, and they confirmed that the required assurance and outcomes of the standards were being delivered with some areas for improvement.

From April 2024 the Housing Ombudsman, made a number of significant changes to its Complaint Handling Code. EPIC completed its annual self-assessment against the code and as a consequence modified its policy and procedure, appointing as part of the new code a trustee of the Board, known as the Member Responsible for Complaints.

Asset Management

During 2024-25 a number of key health and safety polices were refreshed including asbestos, electrical, fire, gas and legionella safety. In addition to this the tenant home improvement policy, repairs policy and stock condition policies were all reviewed and updated. Appropriate tenant consultation was undertaken.

Fire Safety

During the financial year 2024-25, we completed the ongoing program of fire safety improvements to our blocks of flats, and all were fully compliant by March 2025.

Investment in tenants’ homes In 2024-25, we installed:

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Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Strategic Report

As part of our continued improvements to tenants' homes, we have installed 620 humiditycontrolled fans in voids, kitchen & bathroom installations and in tenant homes to assist in moisture control.

Repairs & Maintenance

Brenden Fern continues to provide our repairs and maintenance services to all tenants’ homes. We continue to work with them to better understand any trends in repairs and to allow us to focus on tenant satisfaction with the repairs service.

In 2024-25, we completed:

In addition:

Satisfaction with the repairs service is high – 81.9% of respondents to the tenant survey were satisfied with the repairs service, based on 525 responses and 81.4% of STAR surveys returned stated that they were satisfied with the time taken to complete repairs.

Our people and technology

The annual People & Culture Survey was completed in November 2024 and presented to the Governance and Remuneration Committee in May 2025. Key highlights included:

Key to the success of EPIC and the experience of employees and tenants is the delivery of excellent customer services. Part of the ongoing development of employees is ‘The EPIC Connection’ a purposefully designed development programme that is focussed on a ‘customercentric’ approach underpinned by positive relationships, moving away from purely transactional interactions.

We have seen the positive impact of having an in-house Business Intelligence team. They have provided greater mapping of processes and improved reporting and management of data across the whole organisation. The ability to analyse our tenant data is proving to be an invaluable tool, we have been able to identify underlying trends that we can utilise to develop our services.

We have undertaken externally facilitated tests of our Business Continuity Plans and reported the results to the Audit and Risk Assurance Committee and incorporated lessons learned from the exercise into business-as-usual activity.

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Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Strategic Report

Value for Money (VfM)

The Regulator of Social Housing Value for Money Standard and Code requires providers to report in their statutory accounts against the metrics defined by the Regulator. These metrics are defined in the ‘Value for Money Metrics’ document issued by the Regulator.

Value for Money underpins the delivery of EPIC’s purpose and objectives. Our overarching aim is to achieve our VfM priorities, in order to improve services to tenants and maintain our capacity to deliver our Corporate Plan, with the resources contained within our Long-Term Financial Plan.

Value for Money is a term used to assess whether an organisation has obtained the maximum benefit from the goods and services it acquires and/or provides, within the resources available to it. It measures the costs of goods and services, but it also takes account of the mix of quality, cost and timeliness in order to assess VfM. The VfM Policy was reviewed and updated in February 2025. Having clearly defined strategies in place helps inform decisions about our VfM priorities.

Value for Money is deep rooted in the delivery of our objectives. Our overarching aim is to achieve our VfM priorities. We do this through challenging costs and processes to ensure that value is derived from every transaction/action, whilst still complementing, and running in parallel with our regulatory compliance obligations, to provide better services to tenants, and maintain our capacity to deliver our Corporate Plan.

VfM is incorporated into key strategies and policies including Procurement, Asset Management and Treasury Management . Decisions on VfM will always be taken within the context of our social and business objectives.

Value for money is lived and breathed by staff daily in their roles. The organisation benefits from::

The table below details EPIC’s performance against both the Value for Money Metrics as well as the Sector Scorecard indicators.

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Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Strategic Report

Strategic Report
Value For Money Metric		 Sector
Median
2023-24		 Peer
Group
Global
Accounts
2023-24		 EPIC
Target
2024/25		 EPIC
Actual
2024/25		 EPIC
Target
2025/26		 Comment
Reinvestment %This metric looks at investment in properties including existing stock
and new stock. This is calculated as a percentage of value of total properties.		 7.7% 2.0% 2.1% 2.3% 2.3% EPIC invested slightly more than its target in 2024-25 which is favourable to its Peer Group in 2023-24. Due
to additional capacity in year we were able to bring forward a small element of energy efficiency
expenditure helping to progress the drive to EPC C for all properties ahead of 2030.
As we are not currently developing, the metric is lower than the sector median.
EPIC is committed to ensuring that our stock meets tenants needs and the LTFP reflects this in its provisions
for proactive investment in our existing stock over the life of the plan.
New supply delivered (social housing) as a % of total stockThis sets out the number
of new social housing units that have been acquired or developed in the year as a
proportion of total units.		 number
1.4%		 1.0% 0.0% 0.0% 0.0% EPICs focus over the last few years has been on recovery and stability whilst it delivered a Governance
Improvement Plan. The Board decided to focus on the core business activities as opposed growth. The short
term business plan does not include any additional growth, with the focus on improving our existing stock
and establishing an ethos of continuous improvement.
New supply delivered (Non social housing) as a % of total stock This sets out the
number of new Non social housing units that have been acquired or developed in the
year as aproportion of total units.		 0.2% 0.0% n/a n/a n/a
Gearing %This shows the proportion of our borrowing compared to our assets. A
high gearing could indicate that we have taken on too much borrowing however low
gearing could indicate that we have capacity to borrow more.		 45.6% 37.5% 28.0% 26.2% 26.4% At the end of the year, EPIC has loans of £16.8m outstanding. Our low gearing levels continue to reduce
across the current business plan as existing loans are repaid and no further borrowing is secured.
Initial reviews show that the 30 year plan can support additional borrowing of circa £20m subject to a
resetting of interest cover definitions to EBITDA only, should our growth ambitions change. As outlined
previously the Board have been focused on stability and improving our capacity and operations and
investing in our tenants homes as opposed to growth. The gearing is in inline with prior years and with the
forecast. The level of gearing is below both our Peer Group and the Sector Median.
EBITDA – MRI ( Interest Cover)This shows how much cash the organisation is
generating compared to interest payments. Any result above 100% means that we
are generating surplus cash over and above interest payments		 122.0% 162.0% 132.9% 219.0% 141.6% Due to a combination of factors, including arrears performance and prudent forecasting the surplus
reported in 2024-25 was greater than forecast / target, resulting in a higher level of interest cover.
The sector has been hit hard by the economic climate and the sector median is at an all time low. Against
the harsh backdrop, EPIC's business plan forecasts that interest cover over the next 5 years will be no lower
than 140%, being above the sector median. We are performing lower against our peer group because of
additional stock investment.
Headline social housing cost per unit (£)The unit cost metric assesses the headline social housing
cost per unit as defined by the Regulator of Social Housing		 5,316 4,577 4,174 4,062 4,314 EPIC's Social Housing Cost per unit of £4,062 is 9% higher than in 2023-24, reflective of a staff restructure to
provide additional capacity and deliver quality of services.
The cost per unit across the sector increased by 16% for 2023-24. EPIC's average cost per unit is £1.2k less
than the sector median and reflects the fact that most of our stock is general needs, with the support
service being provided by third parties.
We are out performing our peers, reflecting our tight budgetary control.
Operating Margin % Social Housing This is an indicator of operating efficiency and
business health as it measures the amount of surplus generated from turnover on our
day to day activities		 20.4% 23.4% 12.1% 18.2% 12.8% Whilst operating margin has increased since 2023-24 to 18.2% (and exceeded target) it still remains below
the average for the sector and our Peer group. The latest business plan shows operating margin improving
year onyear over the next 5years,reaching20% by2031.
Operating Margin % OverallThis is an indicator of operating efficiency and business
health as it measures the amount of surplus generated from turnover on our day to
day activities		 18.5% 21.8% 12.1% 18.2% 12.8% As Above.
Return on capital employed (ROCE) %This metric compares the operating surplus to
total assets less current liabilities and assesses the efficient investment of capital
resources		 2.8% 2.6% 1.6% 2.6% 1.7% The ROCE at year end 2025 was in line with the peer group and ahead of our own forecast, as some of the
provisions we had in place for various potential costs were not incurred at the levels that we had provided
for.

16

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Strategic Report

Other Metrics

Metric Description Sector
Median
2023-24		 Actual
2023/24		 Actual
2024/25		 Target/
Forecast
2024/25		 Target
2025-26		 Comment
Voids This measure illustrates the % rent lost though empty
(void) stock %		 1.90% 0.53% 0.55% 0.64% <1% In 2024-25 we bettered our void turnaround target of 28 days, attaining an average turnaround of 27.48
days, as a result void rent loss is also lower than target at 0.55%. During the year we have had our
challenges with a higher number of high value empty properties for various reasons but the teams
have worked hard to ensure these did not adversely affect the overall year average. Performance is
significantly better than the sector median reported in 2024.
Management cost per unitThis metric shows the cost per unit
incurred in managing our properties £		 1,300 1,160 1,396 1,764 2,000 The Management cost per unit is significantly higher than the sector average and reflects the need for
EPIC to invest in staff capacity to review, redesign and embed new processes. This was anticipated and
the costs are lower than we had anticipated in 2024-25.
Service charge cost per unit This metric shows the service
charge cost per unit £		 900 140 142 148 145 EPIC continues to have lower service charge costs than the sector average. Our service charge offerring
is minimal due to the stock profile and we only have a few supported properties and any support
services received by our tenants are provided by third parties. The nature and archetypes of stock that
we own have relatively small service charges related to them mainly in relation to communal
gardening and lighting.
Maintenance cost per unit This metric shows the average
maintenance cost per unit including responsive repairs and
planned revenue repairs £		 3,000 2,087 2,099 2,261 2,000 Our average maintenance cost per unit remains significantly below the sector average. The spike in
2023-24 was mainly as a result of lower expenditure on fire improvement works required in 2024-25.
We are investing greater sums each year in our component replacement programs. There is not a
backlog of overdue works underlying this performance, in 2024-25 we actually managed to bring
forward some planned works from 2025-26. The approved LTFP shows investment increasing and been
maintained at over £1m in the next few years.
Rent Arrears This shows how % of rent arrears compared to
rent charged %		 N/A 4.72% 3.42% 4.75% 4.35% Overall rent arrears as a % of rental income fell as a percentage of the rent charged from 4.72% to
3.42%. This demonstrates that despite the difficulties faced by our tenants in the cost of living crisis
that we have maintained rent collection targets. As evidenced by the rent collected figures the arrears
at year end 2025 were very positive. EPIC like many across the sector has experienced mixed
performance with arrears with a trend for more debt associated with those tenants on Universal
Credit.
Rent Receivable This shows how effective we are at collecting
rents due %		 N/A 99.5% 100.1% 98.5% 99.00% This demonstrates that despite the difficulties faced by our tenants in the cost of living crisis that we
have managed to exceed rent collection rates and targets. The performance is very good given that
there was a rent increase of 7.7% in April 2024 in line with the rent standard. We have fully utilised the
tenancy sustainment budget that was established to assist tenants with other aspects of maintaining a
successful tenancy.

17

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Strategic Report

Financial review

During the year, several improvements have been introduced within the Financial and Governance processes. These include the review and the revision of the Treasury Management Policy and Strategy supported by the David Tolson Partnership. Treasury and Banking, Assets and Liabilities Register (ALR) and Rent Setting, Collection and Arrears Management were all subject to internal audits conducted by TIAA. All three audits produced Substantial Assurance with minor recommendations having all been implemented.

We have also incorporated more component data into our core systems to improve the security and stability of the data that we manage and reduce the risks associated with using spreadsheets in line with the Corporate Plan.

The Statement of Comprehensive Income for the year ended 31 March 2025 and the Statement of Financial Position as of 31 March 2025 are shown on pages 27 and 28.

The key financial highlights for EPIC are as follows:

18

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Strategic Report

Financial review (continued)

19

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Strategic Report

Financial review (continued)

Funding and Treasury

In relation to Funding and Treasury activity, our sole lender is Triodos. Our principal bank providing day-to-day transactional support is the Co-operative Bank Plc. As of 31 March 2025, arranged facilities were £19.3m, all of which are fully drawn, and repayments have commenced. The outstanding balance at 31 March 2025 £16.8m. All the total debt drawn is at fixed interest rates until at least 2030.

EPIC is fully compliant with its two key loan covenants, and as at 31 March 2025 Interest Cover was 216% against a minimum 110% and Asset Cover was 169% versus a minimum of 125%.

Whilst the long-term financial plan shows that we do not require any additional funding to support our current plans, there were 424 units of unencumbered units of stock, subject to satisfactory gearing and interest cover calculations, which would provide approximate security headroom of MV-STT of £23.7m should our plans evolve.

Treasury activities are controlled and monitored by the Board and are executed by the Director of Resources. During 2024-25 the business modelling function has been brought in house, giving EPIC more flexibility and greater control over longer term investment decisions. EPIC’s financial instruments comprise borrowings, cash and liquid resources, and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to finance operations.

Future plans, risks and uncertainties

20

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Strategic Report

Future plans, risks and uncertainties (continued)

The Governance, Financial Viability and Consumer Standard

The Board can confirm compliance with the Governance, Financial Viability and Consumer Standard. EPIC received its latest Regulatory Judgement in July 2025 confirming G1, V2, C1 status.

National Housing Federation Code of Governance

Following review and recommendation by the Governance and Remuneration Committee the Board has adopted the National Housing Federation’s Code of Governance 2020. As part of the ongoing continuous improvement plan a self-assessment was submitted to the GRC in May 2025 for scrutiny and subsequent review by the Board. The self-assessment concluded that EPIC is compliant against the 2020 code.

Statement of Board responsibilities

The Board is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Registered Provider legislation requires the Board to prepare financial statements for each financial year. Under that legislation the Board elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under Housing Association legislation, the Board must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these financial statements, the Board is required to:

21

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Strategic Report

Statement of Board responsibilities (continued)

The Board is responsible for keeping adequate accounting records that are sufficient to show and explain the Association’s transactions and disclose with reasonable accuracy at any time the financial position of the Association and enable them to ensure that the financial statements comply with Housing Association legislation. The Board is also responsible for safeguarding the assets of the Association and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Executive Team are responsible for the maintenance and integrity of the corporate and financial information included on the Association’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by the Board on 18 September 2025 and signed on its behalf by

Sharon Shaw Company Secretary

22

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Auditors Independent Report Independent Auditor’s Opinion

Opinion

We have audited the financial statements of Empowering People Inspiring Communities Limited (the ‘company’) for the year ended 31 March 2025 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the statement of Changes in Reserves, the Statement of Cash Flows and notes to the financial statements including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

23

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Auditors Independent Report

Other information

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

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

We have nothing to report in this regard.

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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the Board’s report.

We have nothing to report in respect of the following matters in relation to which 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 a satisfactory system of control over transactions has not been maintained.

24

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Auditors Independent Report

Responsibilities of the Board

As explained more fully in the Board’s Responsibilities Statement set out on page 21, 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 determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

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 non-compliance with laws and regulations, our procedures included the following:

25

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Auditors Independent Report

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

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

Use of the audit report

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

Mark Bradley (Senior Statutory Auditor) For and on behalf of Beever and Struthers Statutory Auditor The Beehive Lions Drive Shadsworth Business Park Blackburn BB1 2QS

Date: 23 September 2025

26

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Statement of Comprehensive Income

Year Ended 31 Year Ended 31
March March
2025 2024
Note £ £
Turnover 1,2 6,751,835 6,170,820
Operating costs 2 (5,520,967) (5,328,145)
Gain on disposal of property, plant and
equipment 21 155,438 6,254
Operating surplus 1,386,306 848,929
Interest receivable net of notional RCGF interest 34,638 8,244
Interest and financing costs 5 (506,330) (514,412)
Surplus before taxation 914,614 342,761
Taxation - -
Surplus for the year after taxation 914,614 342,761
Other comprehensive income
Actuarial gain/(loss) in respect of pension
scheme 16 103,000 (137,497)
Total comprehensive income for the year 1,017,614 205,264

The results relate wholly to continuing activities and the notes on pages 31 to 50 form an integral part of these accounts.

27

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Statement of Financial Position

Statement of Financial Position
As At 31 As At 31
March 2025 March 2024
Note £ £
Fixed assets
Tangible fixed assets 9 50,011,449 50,268,977
Investments in subsidiary 10 1 1
50,011,450 50,268,978
Current assets
Trade and other debtors 11 606,463 559,406
Investments 12 2,453,232 439,363
Cash and cash equivalents 12 1,420,005 2,815,432
4,479,700 3,814,201
Less: Creditors: amounts falling due within one
year 13 (1,570,702) (1,419,231)
Net current assets 2,908,998 2,394,970
Total assets less current liabilities 52,920,448 52,663,948
Creditors; amounts falling due after more than one
year 14 (22,798,056) (23,322,652)
Provisions for liabilities
Pension – defined benefit liability 16 (323,313) (529,957)
Total net assets 29,799,079 28,811,339
Reserves
Revaluation reserve 8,379,472 8,822,345
Revenue reserve 21,419,07 19,988,994
Total Reserves 29,799,079 28,811,339

Company registration number 3333405.

The financial statements on pages 27 to 50, were approved and authorised for issue by the Board on 18 September 2025 and were signed on its behalf by:

S Wilson – Chair

S Shaw – Company Secretary

28

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Statement of Changes in Reserves

Revenue Revaluation
Reserve Reserve Total
£ £ £
Balance at 31 March 2023 19,484,730 9,121,345 28,606,075
Surplus 2023/24 205,264 - 205,264
Transfer between reserves (excess
depreciation) 299,000 (299,000) -
Balance at 31 March 2024 19,988,994 8,822,345 28,811,339
Surplus 2024/25 1,017,614 - 1,017,614
Transfer between reserves
(excess depreciation) 413,000 (413,000) -
RTA Property Disposals - (29,874) (29,874)
Balance at 31 March 2025 21,419,608 8,379,471 29,799,079

29

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Statement of Cash Flows

Statement of Cash Flows
Year ended Year ended
31 March 31 March
Note 2025 2024
£ £
Net cash generated from operating activities Net cash generated from operating activities
(see below) 2,211,046 1,276,700
Cash flow from investing activities
Purchase of tangible fixed assets (1,196,200) (898,583)
Proceeds from sale fixed assets 530,000 135,750
Interest received 39,935 12,601
Cash flow from investing activities (626,265) (750,232)
Cash flow from financing activities
Interest paid (483,329) (514,411)
Repayment of borrowing (483,010) (469,027)
Subtotal (966,339) (983,438)
Net change in cash and cash equivalents Net change in cash and cash equivalents 618,442 (456,970)
Cash and cash equivalents at beginning of the year 3,254,795 3,711,765
Cash and cash equivalents at end of the year Cash and cash equivalents at end of the year
12		 **3,873,237 ** 3,254,795
Cash flow from operating activities
Surplus before taxation 914,614 342,761
Adjustments for non-cash items:
Depreciation of tangible fixed assets 1,077,914 1,059,459
Movement in bad debt provision (41,235) 11,049
Movement in trade and other debtors (5,823) (128,622)
Movement in trade and other creditors 167,215 (311,604)
Pension costs less contributions payable (126,643) (124,020)
Adjustments for investing or financing activities:
Surplus from the sale of tangible fixed assets Surplus from the sale of tangible fixed assets (155,439) (9,590)
Government grants utilised in the year (68,249) (68,899)
Interest payable 483,329 514,411
Interest received (34,637) (8,244)
Net cash generated from operating activities Net cash generated from operating activities 2,211,046 1,276,701
At the
Reconciliation of Net Debt Beginning of At the End
the Year Cashflows of the Year
£ £ £
Cash and Cash Equivalents 3,254,795 618,441 3,873,236
Housing Loans Due in 1 Year (483,011) (12,342) (495,353)
Housing Loans Due After I Year (16,797,431) 490,064 (16,307,367)
(14,025,647) 1,096,163 (12,929,484)

30

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Notes to the Financial Statements

Legal Status

Empowering People Inspiring Communities Limited is incorporated under the Companies Act 2006 as a company limited by guarantee without share capital and is registered with the Regulator of Social Housing in England as a Private Registered Provider as defined by the Housing and Regeneration Act 2008 and the Charity Commission.

Principle Accounting Policies

(a) Basis of accounting

The financial statements have been prepared in accordance with applicable United Kingdom Accounting Generally Accepted Accounting Practice (UK GAAP) and the Statement of Recommended Practice for registered housing providers: Housing SORP 2018. The Association is a Public Benefit Entity and has applied the Public Benefit Entity Section of FRS102.

The financial statements comply with the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2019. The accounts are prepared on the historical cost basis and are presented in sterling for the year ended 31 March 2025.

The financial statements have been prepared in compliance with FRS102.

(b) Going concern

The Association’s financial statements have been prepared on a going-concern basis which assumes an ability to continue operating for the foreseeable future. No significant concerns have been noted and we consider it appropriate to continue to prepare the financial statements on a going concern basis.

(c) Critical accounting judgements and key sources of estimation uncertainty The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

• Categorisation of housing properties

Impairment is recognised where the carrying value of a cash-generating unit exceeds the higher of the net realisable value or its value in use. The Association has identified a cash-generating unit for impairment assessment purposes at a property unit level.

Reviews for impairment of housing properties are carried out when a trigger has occurred and any impairment loss in a cash-generating unit is recognised by a charge to the Statement of Comprehensive Income.

31

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Notes to the Financial Statements

Principle Accounting Policies (continued)

Following a trigger for impairment, impairment tests are performed based on fair value less costs to sell or a value in use calculation. The fair value less costs to sell calculation is based on available data from sales transactions in an arm’s length transaction on similar cash-generating units (properties) or observable market prices less incremental costs for disposing of the properties. The value in use calculation is based on either a depreciated replacement cost or a discounted cash flow model. The depreciated replacement cost is based on available data of the cost of constructing or acquiring replacement properties to provide the same level of service potential to the Association as the existing property.

The cash flows are derived from the Long-Term Financial Plan and do not include restructuring activities that the association is not yet committed to or significant future investments that will enhance the asset’s performance of the cash-generating unit being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash flows and the growth rate used for extrapolation purposes. Following the assessment of impairment, no impairment losses were identified in the reporting period.

• Development expenditure

The Association capitalises development expenditure in accordance with the accounting policy described on page 34. Initial capitalisation of costs is based on management’s judgement that the development scheme is confirmed, usually when Board approval has taken place including access to the appropriate funding. In determining whether a project is likely to cease, management monitors the development and considers if changes have occurred that result in impairment.

The cost of defined benefit pension plans and other post-employment benefits are determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and the long-term nature of these plans, such estimates are subject to significant uncertainty. In determining the appropriate discount rate, management considers the interest rates of corporate bonds in the respective currency with at least AA rating, with extrapolated maturities corresponding to the expected duration of the defined benefit obligation. The underlying bonds are further reviewed for quality, and those having excessive credit spreads are removed from the population bonds on which the discount rate is based, on the basis that they do not represent high-quality bonds. The mortality rate is based on publicly available mortality tables for the specific sector. Future salary increases and pension increases are based on expected future inflation rates for the respective sector. Further details are given in note 16.

32

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Notes to the Financial Statements

Principle Accounting Policies (continued)

(d) Other key sources of estimation and assumptions

Tangible Fixed Assets

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

(e) Turnover and revenue recognition

Turnover represents rental income receivable, amortised capital grant, revenue grants from local authorities and for its investment function Homes England, and other income and are recognised in relation to the period when the goods or services have been supplied.

Rental income is recognised when the property is available for letting and is presented net of voids.

(f) Service charges

Service charge income and costs are recognised on an accruals basis. The Association operates both fixed and variable service charges on a scheme-by-scheme basis in full consultation with residents. Where variable service charges are used, the charges will include an allowance for the surplus or deficit from prior years, with the surplus being returned to residents by a reduced charge and a deficit being recovered by a higher charge. Until these are returned or recovered they are held as creditors or debtors in the Statement of Financial Position.

Where periodic expenditure is required a provision may be built up over the years, in consultation with the residents; until these costs are incurred this liability is held in the Statement of Financial Position within long-term creditors.

(g) Loan interest costs

Loan interest costs are calculated using the effective interest method of the difference between the loan amount at initial recognition and amount of maturity of the related loan.

(h) Taxation

The Association gained charitable status on 2 April 2008 and therefore its general activities fall outside the scope of the United Kingdom Taxation legislation. The Association is not registered for VAT purposes.

33

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Notes to the Financial Statements

Principle Accounting Policies (continued)

(i) Housing properties Tangible fixed assets are stated at deemed cost or cost, less accumulated depreciation. The Association has elected to use a previous GAAP valuation of the housing properties as deemed cost on transition to FRS102.

All properties and land are freehold. Freehold land held for development is not depreciated.

Where a housing property comprises two or more major components with substantially different useful economic lives (UELs), each component is accounted for separately and depreciated over its individual UEL. Expenditure relating to subsequent replacement or renewal of components is capitalised as incurred.

The Association depreciates freehold housing properties by component on a straight-line basis over the estimated UELs of the component categories.

UELs for identified components are as follows:

Years
Housing Structure 100
Roof 60
Windows 25
Bathrooms 30
Kitchens 20
Boilers 15
Heating Distribution Systems 30
Electrical Rewires 30
Solar panels 25
Composite Doors 30

Other Tangible Fixed Assets, de-minimis for capitalisation is £2,000.

Depreciation is charged on other tangible fixed assets on a straight-line basis over the expected economic useful lives which are as follows:

Years
Freehold Offices 50
Office furniture 10
Office equipment 4
Tools and equipment 2
Computer equipment 2-5

The Association has elected to use a previous GAAP valuation of the freehold offices as deemed cost at transition to FRS102 in 2016.

(j) Capitalisation of interest and administration costs

No interest or administration costs are capitalised. There is potential to capitalise administration costs if directly attributable to development.

(k) Property managed by other parties

Where the Association carries the majority of the financial risk on property managed by other parties, income arising from the property is included in the Statement of Comprehensive Income.

The assets and associated liabilities are included in the Association’s Statement of Financial Position.

34

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Notes to the Financial Statements

Principle Accounting Policies (continued)

(l) Leasing Payments for operating leases are charged to the Statement of Comprehensive Income on a straight-line basis over the term of the lease.

(m) Investments

Investments held in subsidiaries are stated at cost less accumulated impairment and are included in fixed assets. Current asset investments include cash and cash equivalents invested for periods of more than 24 hours. They are recognised initially at cost and subsequently at fair value at the reporting date. Any change in valuation between reporting dates is recognised in the statement of comprehensive income.

(n) Short-term debtors and creditors Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in other operating expenses.

(o) Non-government grants

Grants received from non-government sources are recognised under the performance model. If there are no specific performance requirements the grants are recognised when received or receivable. Where grant is received with specific performance requirements it is recognised as a liability until the conditions are met and then it is recognised as turnover.

(p) Social housing grant and government grants

Where acquisitions have been financed wholly or partly by social housing and other grants, the amount of the grant received has been included as deferred income and recognised in turnover over the estimated useful life of the associated asset structure (not land), under the accruals model.

SHG must be recycled under certain conditions, if a property is sold, or if another relevant event takes place. In these cases, the SHG can be used for projects approved by Homes England. However, SHG may have to be repaid if certain conditions are not met. If grant is not required to be recycled or repaid, any unamortised grant is recognised as Turnover. In certain circumstances, SHG may be repayable, and, in that event, is a subordinated unsecured repayable debt.

(q) Non-monetary government grant On disposal of assets for which non-monetary government grants are held as liabilities in the Statement of Financial Position, the unamortised amount in creditors is amended and included as income in the Statement of Comprehensive Income.

(r) Recycling of capital grant Where Social Housing Grant is recycled, as described above, the SHG is credited to a fund which appears as a creditor until used to fund the acquisition of new properties, where recycled grant is known to be repayable it is shown as a creditor within one year.

(s) Holiday pay accrual A liability is recognised to the extent of any unused holiday pay entitlement which has accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

35

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Notes to the Financial Statements

Principle Accounting Policies (continued)

(t) Retirement benefits

The cost of providing retirement pensions and related benefits is charged to management expenses over the periods benefiting from the employees’ services.

The Association participates in the Social Housing Pension Scheme (‘SHPS’), a defined benefit multiemployer pension scheme, and defined contribution scheme administered by TPT Retirement Solutions (‘TPT’).

The deficit payments related to the Defined Benefit, final salary scheme is charged as a management expense, in line with the SHPS deficit repayment plan.

(u) Reserves policy

The Association is able to freely utilise the revenue reserves to further its objectives. In line with our approved Business Plan, we are currently utilising our reserves for improving our existing stock. When reviewing any opportunities, we need to ensure that whilst fulfilling the Association’s objectives and aims that they are also financially viable in the longer term.

(v) Financial instruments

All loans held by the Association are classified as basic financial instruments in accordance with FRS 102. They are measured at transaction price plus transaction costs initially; and subsequently at amortised cost using the effective interest rate method. Loans repayable within one year are not discounted.

Financial Assets

Trade and Other Debtors

Trade and other debtors (including accrued income) which are receivable within one year and which 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 and any impairment loss.

A provision for impairment of trade debtors is established where 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 the Statement of Comprehensive Income.

Financial Liabilities

Trade and Other Creditors

Trade and other creditors (including accruals) payable within one year that do not constitute a financing transaction are initially measured at the transaction price less any amounts settled.

All loans held by the Association are classified as basic financial instruments in accordance with FRS102.

36

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Notes to the Financial Statements

1 Turnover, cost of sales, operating expenditure and operating surplus

2025

Turnover Cost of
sales		 Cost of Operating
expenditure		 Operating
surplus
£ £ £ £
Social housing lettings (note 2) 6,746,843 - -
5,515,975		 1,230,868
Activities other than social housing 4,992 - -
4,992		 -
Total 6,751,835 - 5,520,967 1,230,868 5,520,967 1,230,868
2024
Turnover Cost of
sales		 Operating
expenditure		 Operating
surplus
£ £ £ £
Social housing lettings (note 2) 6,160,857 - -
5,318,182		 842,675
Activities other than social housing 9,963 - -
9,963		 -
Total 6,170,820 - 5,328,145 842,675

37

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Notes to the Financial Statements

2 Turnover and operating expenditure

2024
2025 Restated
Income £ £
Rent receivable net of identifiable service charges 6,502,989 6,502,989
5,936,559		 5,936,559
Service charges income 175,605 175,605
155,398		 155,398
Net rental income 6,678,594 6,678,594
6,091,957		 6,091,957
Amortised government grants (Note 15) 68,249 68,249
68,899		 68,899
Turnover from social housing lettings 6,746,843 6,746,843
6,160,856		 6,160,856
Operating expenditure
Management 1,917,089 1,917,089
1,603,617		 1,603,617
Service charge costs 195,264 195,264
193,900		 193,900
Routine maintenance 1,715,516 1,715,516
1,754,765		 1,754,765
Planned maintenance 63,599 63,599
-		 -
Major repairs expenditure 520,307 520,307
659,085		 659,085
Movement in Bad debt provision 36,007 36,007
59,954		 59,954
Depreciation of housing properties 1,068,193 1,068,193
1,046,860		 1,046,860
Operating expenditure on social housing lettings 5,515,975 5,515,975
5,318,181		 5,318,181
Operating surplus from social housing lettings 1,230,868 1,230,868
842,675		 842,675
Activities other than social housing lettings
Sundry Income 4,992 4,992
9,963		 9,963
Sundry Expenditure 4,992 4,992
9,963		 9,963
Operating surplus from activities other than
social housing lettings - -
Total operating surplus 1,230,868 1,230,868
842,675		 842,675
Void rental losses 37,279 37,279
32,442		 32,442
3
Accommodation owned, managed and in development		 Accommodation owned, managed and in development
No. of properties No. of properties No. of properties
Owned Managed Owned Managed
2025 2025 2024 2024
Social Housing
Under Management at the end of the year:
General needs housing –Social Rent 1,098 - 1,100 1,100 -
– Affordable Rent 209 - 187 187 -
– Intermediate 47 - 73 73 -
– Leasehold 26 - 24 24 -
– Shared Ownership 2 - 2 2
Supported Housing 19 - 20 20 -
Total Owned and Managed 1,401 - 1,406 1,406 -
General needs housing – In development - - - - -
Total in development - - - - -
Total owned, managed & in development 1,401 - 1,406 1,406 -

38

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Notes to the Financial Statements

4 Accommodation managed by others

4
Accommodation managed by others
EPIC owns property managed by
other bodies. No of properties No of properties
No of properties
2025 2024
General needs – Social Rent 19 20
5
Interest and financing costs
2025 2024
£ £
Deferred benefit pension charge 23,000 23,000
21,499
Amortisation of Loan arrangement fees 13,004 13,004
13,004
Other financing costs 5,034 5,034
20
Loan interest payable 465,291 465,291
479,888
506,329 506,329
514,411
6
Surplus on ordinary activities
2025 2024
The operating surplus is stated after charging/(crediting): £ £
Annual audit of the Association’s financial statements 27,600 27,600
23,201
Fees payable to the auditor for other services to the Association:
Taxation compliance services - -
-
Operating lease rentals – Office equipment 5,637 5,637
1,498
Depreciation of housing properties 1,068,193 1,068,193
1,046,860
Depreciation of other fixed assets 9,722 9,722
12,600
Amortisation of grant (68,249) (68,249)
(68,899)

39

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Notes to the Financial Statements

7 Key Management Personnel

The Non- Executive Board Trustees received emoluments in the year to 31 March 2025 totalling £33,229 (2024 - £34,400). These were paid as shown below:

Emoluments Expenses Total
£ £ £
R Emery 2,500 353 2,853
R Challinor 2,500 - 2,500
S Wilson Chair of Board 5,000 151 5,151
N Leggett 2,500 504 3,004
M Dodwell Chair of ARAC 3,500 911 4,411
J Moore Chair of GRC 3,500 349 3,849
D Newmarch 2,500 - 2,500
C Small Resigned September 2024 1,250 59 1,309
A Jhawar 2,500 152 2,652
A Bragg 2,500 - 2,500
R Morton 2,500 - 2,500
30,750 2,479 33,229
2025 2024
£ £
The aggregate emoluments paid to or receivable by trustees and the The aggregate emoluments paid to or receivable by trustees and the 380,665 418,503
executive management team
The pension contributions paid to the key management personnel 16,663 18,439
The emoluments paid to the highest-paid Director excluding pension 95,400 95,354
contributions

The Chief Executive is an ordinary member of the pension scheme. The pension scheme offered from May 2016 was a defined contribution scheme funded by annual contributions by the employer and employee. No enhanced or special terms apply. There are no additional pension arrangements. A contribution by EPIC of £4,770 (2024: £4,767) was paid in addition to the personal contributions of the Chief Executive.

Key Management Personnel are defined as the trustees of the Board and Executive Team.

In line with the Transparency, Influence and Accountability Standard of the Regulator of Social Housing we are required to report on the aggregate amount of remuneration paid (including NI and pension) to Key Management Personnel, (including the Executive Team) relative to the size of the landlord. We calculate this to be £421,215 divided by the number of units owned of 1,375 (excluding leaseholders), which equates to £306 per unit.

The RSH also requires us to report on the highest paid Director, (excluding pension and NI costs), relative to the number of units. We calculate this to be £69 per unit, with the calculation of £95,400 divided by 1,375 units.

40

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Notes to the Financial Statements

Notes to the Financial Statements
8
Employee information
2025 2024
No. No.
The average number of persons employed during the year expressed
in full time equivalents (35 hours per week) was:
Office staff 32 27
Wardens, caretakers and cleaners 1 1
Total employees 33 28
£ £
Staff costs
Wages and salaries 1,434,117 1,205,766
Social security costs 149,020 118,937
Other pension costs (Defined benefit & defined contribution) 80,064 68,189
Total Employee Costs 1,663,201 1,392,892
No. No.
Aggregate number of full-time equivalent staff whose remuneration
exceeded £60,000 in the year
£60,001 to £70,000 4 3
£70,001 to £80,000 - -
£80,001 to £90,000 - 1
£90,001 to £100,000 1 -
£110,001 to £120,000 - 1
2025 2024
Remuneration payable to the highest paid Director 95,400 95,354

41

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Notes to the Financial Statements

9 Tangible fixed assets

Social Office
Social Housing Furniture
Housing Properties and
Properties Not Freehold equipmen
Completed Completed Land offices t Total
£ £ £ £ £ £
Cost or
valuation
At 31.3.24 60,297,694 - 50,000 188,046 535,692 61,071,432
Revaluation - - - - - -
Additions
Properties - - - - 30,056 30,056
Additions
Components 1,166,145 - - - - 1,166,145
Component Component
Replacements (275,406) - - - - (275,406)
Property
Disposals (428,622) - - - - (428,622)
OFA Disposals - - - - (158,319) (158,319) (158,319)
At 31.3.25 60,759,811 - 50,000 188,046 407,429 61,405,286
Depreciation /
impairment impairment
At 31.3.24 10,263,937 - - 25,213 513,305 10,802,455
Charge for
year 1,068,193 - - 3,514 6,208 1,077,915
Components
replaced (275,405) - - - - (275,405)
Property
Disposals (52,809) - - - - (52,809)
OFA Disposals - - - - (158,319) (158,319)
At 31.3.25 11,003,916 - - 28,727 361,194 11,393,837
NBV 31.3.25 49,755,895 - 50,000 159,319 46,235 50,011,449
NBV 31.3.24 NBV 31.3.24 50,033,757 - 50,000 162,833 22,387 50,268,977
2025 2024
£ £
Components capitalised Components capitalised 1,166,145 826,435
Amounts charged to expenditure Amounts charged to expenditure 520,307 659,084

42

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Notes to the Financial Statements

10 Fixed asset investments

10
Fixed asset investments
2025 2024
£ £
At 31.3.24 1 1
Additions in the year - -
At 31.3.25 1 1
Net book value 31.3.25 1 1
Net book value 31.3.24 1 1

The Company owns 100% of the issued share capital of EPIC Regeneration Services Limited, a company incorporated in England and Wales. This Company has aggregate capital and reserves of £1 and has been dormant since incorporation.

Under the provision of section 399of the Companies Act 2006 the Association is exempt from preparing consolidated accounts and has not done so. Therefore, these accounts show information about the Association as an individual entity.

11 Trade and other debtors

11
Trade and other debtors
2025 2024
£ £
Rent arrears 222,681 287,686
Less: provision for bad debts (178,461) (229,639)
Other debtors 229,929 173,158
Prepayments and accrued income 332,314 328,201
Total 606,463 559,406

All debtors are due within one year.

12 Cash and cash equivalents

12
Cash and cash equivalents
2025 2024
£ £
Investments 2,453,232 439,363
Cash at bank and in hand 1,420,005 2,815,432
Total 3,873,237 3,254,795

Included in the above is £116,339 (2024: £111,108) held in trust for Leaseholders.

43

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Notes to the Financial Statements

13 Creditors: amounts falling due within one year

13
Creditors: amounts falling due within one year
2025 2024
£ £
Trade creditors 54,530 243,336
Deferred capital grant (Note 15) 68,249 68,899
Rents and service charges paid in advance 265,242 196,356
Service charge balances held on behalf of leaseholders 116,339 111,108
Accruals and deferred income 571,080 315,745
Loans 495,353 483,011
Other creditors (91) 776
Total 1,570,702 1,419,231
Loans are secured by housing properties, see note 23.
14
Creditors: amounts falling due after more than one year		 14
Creditors: amounts falling due after more than one year
2025 2024
£ £
Deferred Capital Grant (Note 15) 6,223,506 6,356,106
Loans 16,307,367 16,797,431
Recycled Capital Grant Fund 267,183 169,115
Total 22,798,056 23,322,652
Loans are secured by housing properties, see note 23.

15 Deferred capital grant

15
Deferred capital grant
2025 2024
£ £
At 31.3.24 6,425,004 6,467,101
Grant transferred from RCGF -49,302 49,302
Grant transferred Re Property Disposals (65,000) (27,500)
Amortised in the year (68,249) (68,899)
At 31.3.25 6,291,755 6,425,004
Amount due to be released in less than 1 year 68,249 68,899
Amount due to be released after 1 year 6,223,506 6,356,105
Total 6,291,755 6,425,004

16 Provision For Liabilities – Social housing pension scheme

The Association participates in the Social Housing Pension Scheme (the Scheme), a multi-employer scheme which provides benefits to some 400 non-associated employers. The Scheme is a defined benefit scheme in the UK and administered by TPT Retirement Solutions.

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 triennial valuation of the scheme for funding purposes was carried out as at 30 September 2024. This valuation revealed a deficit of £636m (£1,560m 2020). A Recovery Plan remains in place with the aim of recovering this deficit by 31 March 2028.

44

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Notes to the Financial Statements

16 Provision for Liabilities – Social housing pension scheme (continued)

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. The Pensions Trust has estimated cost for EPIC withdrawing from the scheme as at 30 September 2024 is £1,024,460.

Fair value plan of assets, present value of defined benefit obligation and defined benefit asset/(liability)

2025 2024
£’000 £’000
Fair value of plan assets 2,211 2,217
Present value of defined benefit obligation 2,534 2,747
(Deficit)/surplus in plan (323) (530)
Defined benefit (liability)/asset to be recognised (323) (530)

Reconciliation of opening and closing balances of the defined benefit obligation

2025 2024
£’000 £’000
Defined benefit obligation at start of period 2,747 2,740
Expenses 4 4
Interest expense 134 132
Actuarial losses (gains) due to scheme experience 116 (26)
Actuarial losses (gains) due to changes in demographic
assumptions		 Actuarial losses (gains) due to changes in demographic Actuarial losses (gains) due to changes in demographic - (25)
Actuarial
losses
assumptions		 losses
(gains)
due
to
changes		 in financial (435) (57)
Benefits paid and expenses Benefits paid and expenses (32) (21)
Defined benefit obligation at end of period 2,534 2,747

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

2025 2024
£’000 £’000
Fair value of plan assets at start of period 2,217 2,249
Interest income 111 111
Experience on plan assets (excluding amounts included in
interest income) – gain (loss)		 (216) (245)
Employer contributions 131 123
Benefits paid and expenses (32) (21)
Fair value of plan assets at end of period 2,211 2,217

The actual return on plan assets (including any changes in share of assets) over the period from 31 March 2024 to 31 March 2025 was (£105,000).

45

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Notes to the Financial Statements

16 Provision for Liabilities – Social housing pension scheme (continued)

Defined benefit costs recognised in the statement of comprehensive income (SOCI) Defined benefit costs recognised in the statement of comprehensive income (SOCI) Defined benefit costs recognised in the statement of comprehensive income (SOCI)
2025 2024
£’000 £’000
Expenses 4 4
Net interest expense 23 21
Defined benefit costs recognised in Statement of Comprehensive
Income (SOCI)		 27 25
Defined benefit costs recognised in other comprehensive income (OCI) Defined benefit costs recognised in other comprehensive income (OCI)
2025 2024
£’000 £’000
Experience on plan assets (excluding amounts included in net
interest cost) – gain (loss)
(216)		 (216) (245)
Experience gains and losses arising on the plan liabilities – gain
(loss)		 (116) 26
Effects of changes in the demographic assumptions underlying
the present value of the defined benefit obligation – gain (loss)		 - 25
Effects of changes in the financial assumptions underlying the
present value of the defined benefit obligation – gain (loss)		 435 57
Total actuarial gains and losses (before restriction due to some
of the surplus not being recognisable) – gain (loss)		 103 (137)
Total amount recognised in Other Comprehensive Income –
gain (loss)		 103 (137)

46

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Notes to the Financial Statements

Assets

Assets
2025 2024
£’000 £’000
Global Equity 248 221
Absolute Return - 87
Distressed Opportunities - 78
Credit Relative Value - 73
Alternative Risk Premia - 70
Liquid Alternatives 410 -
Emerging Markets Debt - 29
Risk Sharing - 130
Insurance-Linked Securities 7 11
Property 111 89
Infrastructure - 224
Private Equity 2 2
Real Assets 265 -
Private Debt - 87
Opportunistic Illiquid Credit - 87
Private Credit 270 -
Credit 84 -
Investment Grade Credit 68 -
High Yield - -
Cash 30 44
Long Lease Property 1 14
Secured Income 37 66
Liability Driven Investment 669 902
Currency Hedging 4 (1)
Net Current Assets 5 4
Total assets 2,211 2,217

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.

Key Assumptions 2025 2024
% per annum % per annum
Discount Rate 5.92% 4.92%
Inflation (RPI) 3.05% 3.09%
Inflation (CPI) 2.80% 2.79%
Salary Growth 3.80% 3.79%
75% of 75% of
Allowance for commutation of pension for cash at retirement maximum maximum
allowance allowance

47

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Notes to the Financial Statements

16 Provision for Liabilities – Social housing pension scheme (continued)

Key Assumptions (continued)

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

2025 2024
Life Life
expectancy expectancy at
at age 65 age 65
Years Years
Male retiring in 2025 20.5 20.5
Female retiring in 2025 23.0 23.0
Male retiring in 2045 21.7 21.8
Female retiring in 2045 24.5 24.4

17 Capital commitments

The table below shows the financial implications and sources of funding to deliver the signed contracts.

The table below shows the financial implications and sources of funding to deliver the signed
contracts.		 The table below shows the financial implications and sources of funding to deliver the signed The table below shows the financial implications and sources of funding to deliver the signed The table below shows the financial implications and sources of funding to deliver the signed The table below shows the financial implications and sources of funding to deliver the signed
2025 2024
£ £
Capital expenditure that has been contracted for but has not
been provided for in the financial statements - -
Capital expenditure that has been authorised by the Board but
has not yet been contracted for - -
Capital commitment - -
EPIC expects these commitments to be financed with:
Triodos loan facilities - -
Social housing grant (in line with spend) - -
Internally generated resources (revenue reserve) - -
Total - -

18 Contingent liability

In respect to the defined benefit Social Housing Pension Scheme, we were notified in 2021 by the Trustee of the Scheme that it has performed a review of the changes 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 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, therefore, in line with the prior year, no adjustment has been made in these financial statements in respect of this.

19 Grant and financial assistance

19
Grant and financial assistance
2025 2024
£ £
Total accumulated SHG received or receivable at 31 March:
Held as deferred capital grant 6,824,916 6,889,916
Total 6,824,916 6,889,916

48

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Notes to the Financial Statements

19 Grant and financial assistance (continued)

In addition to the grant above which is accounted for within the accounts we also have a potential liability of £2.69m of grant transferred from other Registered Providers as part of the property acquisition of 169 units from the Bromford Group in May 2021.

20 Related parties

As at March 2025, the Board has no Tenant Board trustees and there were no related party transactions during the year to 31 March 2025. We have no staff representative on the Board, but four staff members are also tenants of EPIC, all under normal rental policies, the same as any other tenant.

21 Surplus on disposal

The surplus on disposal of properties in the year is a consequence of six property sales during 202425. Of these, 2 were flats sold via the Right To Acquire (RTA) scheme and the tenants have become leaseholders, 2 were houses, previously let at affordable rents, also sold via the RTA scheme, 1 was a house, let at an intermediate rent and sold via the Rent To Buy scheme, and the remaining property, on becoming vacant and being unlikely to meet Net Zero, was sold at our discretion on the open market under the Stock Rationalisation Policy.

2025 2024
£ £
Sale Proceeds 530,000 135,750
Less:
Associated selling fees (8,840) (3,336)
Write off cost (NBV) (365,722) (126,160)
Surplus on disposal 155,438 6,254
22 Recycled capital grant fund
2025 2024
£
Opening balance of fund 169,115 191,560
Inputs/Withdrawals 92,770 (26,801)
Interest Accrued 5,297 4,356
At 31.3.25 At 31.3.25 267,182 169,115

22 Recycled capital grant fund

Included within the RCGF balance is £108,116 is potentially repayable within 1 year. Homes England have approved 4 business cases that exhaust the full RCGF provision outstanding at 31 March 2025.

23 Loans

At the financial year end, EPIC had drawn down a total of £19.3m. The loans are secured against EPIC’s stock, over a 25-year term, and are on a fixed-interest basis.

2025 2024
Maturity of debt £ £
In less than one year 495,353 483,011
In more than one year but less than two years 707,611 495,353
In more than two years but less than five years 2,242,039 2,181,876
In greater than five years 13,357,718 14,120,202
Total 16,802,721 17,280,442

49

Empowering People Inspiring Communities Limited Financial Statements for the year ended 31 March 2025

Notes to the Financial Statements

24 Interest rate risk and exposure

As at 31 March 2025 the following amounts were drawn down and had been fixed on 20 March 2020:

Facility 1 – £4,533,576.98 – 2.553% – Fixed until 20/03/2030 Facility 2 – £3,821,496.49 – 2.653% – Fixed until 20/03/2030

The additional drawdown of £10.3m in April 2021 was also fixed for a period of 10 years: Facility 3 – £5,000,000 – 2.779% – Fixed until 21/04/2031 Facility 4 – £5,300,000 – 2.879% – Fixed until 21/04/2031 (Interest only until April 2026)

EPIC Treasury Management Policy sets out that when looking at any aspect of interest rate exposure, it is important to remember that overall interest rate risk management is about reducing risk and increasing certainty. It is not about best guessing or predicting the way interest rates will move.

Any sensitivity analysis will be applied to all variable-rate borrowing and to any fixed-term borrowing after its maturity date, using market forecast rates.

The Board must approve the use of hedging instruments subject to the Rules of the Association and the regulators guidelines/approval. In such cases a hedging strategy must be prepared and appended to the Treasury Management Policy, which must state the type of instruments to be used, the value limits, the counterparties involved and the periods for which they will be in place.

25 Post balance sheet events

There are no Post Balance Sheet Events of any significance to report.

50

IY4.

Notes

Notes

“So pleasing to see EPIC continue to build financial resilience as a key foundation to our ambitions within the Corporate Plan. These foundations will help us focus on our tenants, their homes, their communities, our people and working in partnership.” Simon Wilson, Chair

If you have any queries in respect of this report, please contact: Sharon Shaw, Director of Resources In writing: EPIC Housing 131-141 Ubberley Road Bentilee Stoke-on-Trent ST2 0EF By telephone: 01782 252575 Via email: mailbox@epichousing.co.uk