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2024-03-31-accounts

Annual report and financial statements 2023/24 Hotssing *1 FY70 UAP Selwood Cft Housing

Contents

Page
Directors, executive officers, advisors, and bankers 1
Letter from the chair 2
Group strategic report including the operating and financial 5
review for the year ended 31 March 2024
Independent auditor’s report 38
Consolidated and company statement of comprehensive
income		 42
Consolidated and company statement of financial position 43
Consolidated statement of changes in reserves 44
Company statement of changes in reserves 45
Consolidated statement of cash flows 46
Notes forming part of the financial statements 47

Directors, executive officers, advisors, and bankers

The directors of the Selwood Housing Group who were in office during the year and up to the date of signing the financial statements were:

Group Board of Directors

Sheila Lewis * Stella Shepherd ** David Knight to 04/10/23 Hannah Jones Koo Chai Young Li Mow Ching *chair ** vice chair

Lisa Nicholls from 04/10/23 Chris Butters Richard Yates Valerie Lee to 04/10/23 Nicola Setchell from 04/10/23 to 01/05/24 Philip Whitehead

Executive officers

Group chief executive Group finance director Group transformation and people director Group operations director Group development director

Barry Hughes Mark Mayler Ria Bristow Verena Buchanan Paul Walsh

Registered office

Bryer Ash Business Park Bradford Road Trowbridge Wiltshire BA14 8RT

Advisors and bankers

Independent Beever and Struthers Internal auditors TIAA Limited
auditor 20 Colmore Circus Artillery House
Queensway Fort Fareham
Birmingham Newgate Ln
B4 6AT Fareham
PO14 1AH
Principal funder Nationwide Building Society Principal bankers Lloyds Bank
Kings Park Road 64 Fore Street
Moulton Park Trowbridge
Northampton Wiltshire
NN3 6NW BA14 8EU
Principal Trowers & Hamlins Capsticks Solicitors Anthony Collins
legal advisors The Senate LLP Solicitors
Southernhay Gardens 1 St George’s Road 143 Edmund Street
Exeter London Birmingham
EX1 1UG SW19 4DR B3 2ES

Charity commission registration No. 1141124 Company limited by guarantee - registration No. 4168336 Registered with the Regulator of Social Housing – registration No. LH4097

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Selwood Housing Society Ltd

Welcome from the Chair of our Board of directors

Overview

A year of considerable investment in local affordable homes and in supporting our communities and customers.

I am pleased to introduce our 2023-24 annual report and financial statements, in my last full year as Chair.

We are happy with the progress we have made this year, particularly set against the continued challenging economic backdrop, both for us and for our customers.

Sector-wide challenges affecting all housing associations continued including another below inflation rent cap, ongoing inflationary and higher interest rate pressures and ever-increasing cost of living challenges.

Our people have worked tirelessly over the past year to support our customers, as shown in the excellent performance we have delivered.

This is also the first year of reporting the new tenant satisfaction measures (TSMs) from the Regulator of Social Housing. We’re pleased that our full year customer survey results show an 84% overall customer satisfaction rate with our services. We also scored very highly for keeping residents informed (89%), provision of a safe home (87%) and treating residents with respect (87%). These results place us in the top 25% of housing associations nationally and in our in our peer group that have completed their returns to date.

Building new homes

The National Housing Federation (NHF) estimates, 1.5 million families will be on the waiting list for social housing by 2030, a rise of almost a third. We know the difference a safe secure home can make to families, and we are committed to playing our part as the housing crisis continues to escalate.

In October, we secured an additional £25m loan from Lloyds Bank enabling us to press on with our plans to build 1,700 more local affordable homes by 2034. During the year we built 171 new homes , which represents an increase of 11% when compared with new homes built last year.

This included our regeneration of a derelict site in Polebarn Road, Trowbridge. Situated at the centre of a historic conservation area and surrounded by listed heritage buildings, customers moved into these new social rent and shared ownership homes at McDonogh Court in March.

We also completed our first EPC A rated scheme at Platinum Court, another regeneration of a key corner site at Studley Green in Trowbridge.

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Selwood Housing Society Ltd

Overall, we welcomed 661 people into new build Selwood Housing homes this year. That’s in addition to the more than 300 households we welcomed to our existing homes.

Investing in our homes .

In 23/24 we also made substantial investments in our existing homes, to improve energy efficiency and meet net zero carbon targets, eradicate damp and mould and to improve the quality and safety of our customers’ homes.

Our plan to bring over 1,500 homes to EPC C rating or above by 2030 is well underway. In April 2023 we received an award of £1.4 million from the social housing decarbonisation fund. Combined with our £4.3 million co-funding, this enabled us to begin a programme of improvements to our least energy efficient properties including loft, cavity and external wall insulation as well as photovoltaic panels and air source heat pumps. Our investment will help make our customers’ homes warmer and address fuel poverty.

We prioritised customers experiencing damp and mould issues, with a significant investment of around £500k ring fenced. New monitoring devices such as the ‘surveyor cube’ have been introduced to help our specialist surveyors work closely with customers implementing more targeted and effective solutions to stop damp and mould.

We installed 481 new bathrooms and kitchens and 229 new windows, all well ahead of our targets for the year.

We have worked hard to improve our response time for repairs in customer homes completing over 99% of emergency repairs and almost 95% of non-emergency repairs within target, well ahead of our sector peers.

Supporting our communities and customers

Our priority neighbourhoods during 2023-24 were two communities in Warminster and Westbury, where initiatives included a community garden makeover and neighbourhood impact days.

Following concerns raised by customers and residents about antisocial behaviour and safety during our community ‘door knock’ consultation in July, we applied for grant funding to install CCTV on the Westleigh Estate. With funding approved, this multiagency project is set to increase the wellbeing and safety of all residents.

We also funded several wider community projects as part of our Stronger Communities Fund, including refurbishing a skatepark, funding fun runs and pop-up youth cafes. In addition, our people have brought communities together, for example our Manor Court sheltered housing community are now working closing with a local primary school on an eco-project.

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Selwood Housing Society Ltd

We supported our customers in maintaining their tenancies, particularly when facing financial hardship because of the cost-of-living crisis. Practical help included our membership of Wiltshire Money, referrals to other charities and providing benefit eligibility advice. Working in this way has helped to us maintain a low level of rent arrears at just 0.76% .

Supporting our people to deliver our services

We believe that being truly local makes us different, with over 75% of our team living in the communities where we have homes. We have continued to invest in training, development and extending professional skills.

Staff consistently demonstrate their passion and dedication to our customers. The customer services team responded to a total of 47,392 calls and approximately 12,000 emails, and the planning team booked and organised a staggering 27,000 repairs jobs.

Our real time Rant & Rave customer feedback platform tells us instantly what customers think of the repair service received. We’re delighted that in 2023/24, 91% of customers rated their repair as a 4, or 5, out of 5.

We are listening to our customers, responding to what they say and continuing to drive our performance forwards.

During the year, we also pressed ahead with work to improve and create new digital services, so we can deliver an even better experience of working with and at Selwood Housing.

Outlook

Looking ahead, we will invest further in our homes, prioritising those areas that we know are most important to our customers – repairs, safety, and environmental efficiency. We’re also committed to achieve our new tenant satisfaction measures, providing quality homes and services to our customers. And with a current pipeline of 300 new homes, we can deliver more affordable homes for local people.

Finally, I would like to thank all colleagues at Selwood Housing, who have worked hard over the past year to deliver these excellent results and to all our partners and stakeholders for their continued support.

Sheila Lewis Chair

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Selwood Housing Society Ltd

Group strategic report including the report of the Board for the year ended 31 March 2024

The group Board presents its report and audited consolidated financial statements of Selwood Housing Society Limited and its subsidiary undertakings, for the year ended 31 March 2024.

Selwood Housing Group

Selwood Housing Society Limited (Selwood Housing) is the parent company of Silcoa Limited, Cottsbury Homes Limited, and Selwood DevCo Limited.

Selwood Housing is a company limited by guarantee governed by its articles of association. It is registered with the Charity Commission and the Regulator of Social Housing (RSH) and administered by a Board of non-executive directors (the Board).

Principal activities

The principal activities of the group are the development and provision of affordable housing, incorporating the letting, management and maintenance of dwellings for people in housing need and the provision of support services.

Overview of the business

The purpose of Selwood Housing is to develop, manage and maintain quality affordable housing and provide support services for the benefit of people in housing need.

We manage and maintain homes across Wiltshire, Bath and North East Somerset, and the parts of the county of Somerset which are within one hour’s drive of our head office in Trowbridge. We have a strong local presence and involvement with our local communities. We own 7,196 properties and are the largest social landlord in the West of Wiltshire.

The Regulator of Social Housing refreshed their assessment of Selwood’s compliance with the Governance and Financial Viability Standard in December 2023 which resulted in Selwood Housing retaining our G1 governance rating and V2 viability rating.

We have an active programme to develop new homes in our areas of operation, offering a range of affordable homes that meet the needs identified by our local authority partners. In addition to substantial investment in new homes, we are continuing a large programme of improvements to our existing properties.

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Group strategic report including the report of the Board for the year ended 31 March 2024 continued

Overview of the business continued

We are committed to neighbourhoods, customers and excellence and we undertake a wide range of community activities. We provide lifeline services to our tenants.

Selwood Housing has three commercial subsidiaries, set up for specific purposes. They are all wholly owned by Selwood Housing and the profits they make stay within the group to support Selwood Housing’s charitable objectives.

Silcoa Ltd was our property repairs and improvement company which was integrated into Selwood Housing on the 1 July 2021. No activity remains in the company and so is now dormant.

Cottsbury Homes Ltd is a company that develops homes for market sale. It is not currently active.

Selwood DevCo Ltd is the owner of photovoltaic (PV) panels which are installed on 115 properties owned by Selwood Housing.

Objectives and strategy

The Board has referred to the Charity Commission’s general guidance on public benefit when reviewing Selwood Housing’s aims and objectives and in planning our future activities. The Board has considered how planned activities for the year will contribute to the aims and objectives they have set.

Our strategy is underpinned by four guiding principles:

These principles will guide our work over the coming years. Our corporate plan develops these into the key areas for us to develop in the next few years.

Our key challenge is:

“To be able to deliver quickly on a wide range of complicated, changing targets to meet rising customer expectations”

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Group strategic report including the report of the Board for the year ended 31 March 2024 continued

Objectives and strategy continued

The key areas for us in the next few years are:

The specific targets for 2024/25 are:

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Group strategic report including the report of the Board for the year ended 31 March 2024 continued

Objectives and strategy continued

Selwood Housing’s values

Operational performance

Financial review

The group turnover in the year was £53m (2023: £46m). This represents an increase of 15% (2023: increase of 4%).

Operating costs are higher than last year at £38m (2023: £34.1m), this is mainly due to inflationary increases and the completion of some large, planned programmes of work in year. Operating costs include depreciation charges of £9.0m (2023: £9.0m), a key accounting estimate. Impairment losses have been recognised in the year totalling £1,006k in respect of two blocks of flats in Warminster that the Board have approved for demolition. (2023: £433k).

The surplus from the sale of properties was higher than last year at £3.4m (2023: £1.6m) due to selling more properties in line with our current asset management and disposal strategies. The properties’ sold included a mix of right to buy, right to acquire, staircasing and open market sales. Selwood Housing remains committed to considering the suitability and efficiency of our properties.

The overall surplus for the Group in the year is £7.1m, (2023: £6.1m), higher than last year despite increased operational and interest costs.

Selwood Housing carries fixed assets in its financial statements at cost (not valuation). Selwood Housing’s residential property asset base at cost was £564m as at 31 March 2024 (2023: £533m). This increase was a combination of the addition of newly developed homes and works to existing properties.

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Group strategic report including the report of the Board for the year ended 31 March 2024 continued

Operational performance continued

The pension asset of £28.4m has been restricted to £nil (2023: liability £nil) as the recoverability of this asset would require a right to reduce employer contributions or to request a refund from the fund. Neither of these options are available.

The existing use value – social housing (EUV-SH) of Selwood Housing’s properties was estimated to be in the region of £471m at 31 March 2024 (2023: £433m). The directors consider there is no impairment following an impairment review conducted as described in the notes to these accounts.

Selwood Housing finances its property assets through a loan facility of £101.8m (2023: £108.6m) made available by Nationwide Building Society, a £50m (2023: £50m) facility from Affordable Housing Finance Plc (AHF), a £55m (2023: £30m) facility from Lloyds Bank Plc and a £20m facility from MORhomes Plc. At 31 March 2024 £81.8m (2023: £88.6m) of the Nationwide facility had been drawn down. This left £20m (2023: £20m) available from Nationwide. £50m (2023: £50m) of the AHF funding had been drawn down at year end, £32.5m had been drawn from the Lloyds Bank facility (2023: £8m) and £20m from MORhomes Plc (2023: £20m)

The Board of Selwood Housing Group has adopted a treasury management policy statement. This sets out the group’s policies concerning all treasury management activities, including managing cash flow, borrowing, investing, and hedging. In the financial year net cash inflow from operating activities of £16.8m (2023: £17m) helped to fund net cash spend of £26.2.m (2023: £28.1m) on developing new homes before receipt of social housing grant.

In the 2023/24 corporate plan Selwood Housing had several key areas of focus. Our achievements against each of those areas during 2023/24 include the following:

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Operational performance continued

Key risks

Financial risk management policy

Selwood Housing’s operations expose it to a variety of financial risks that include the effects of changes in credit risk, liquidity risk, interest rate risk and covenant breach risk.

The main credit risk for Selwood Housing relates to non-payment of rents from tenants. We actively manage arrears ensuring tenancies are affordable for new tenants. We provide clear payment terms, a structured process of credit control and regular review of individual tenants' accounts.

The risk that Selwood Housing does not have sufficient liquid assets to carry on its activities is managed through active cash flow monitoring and forecasting.

Interest rate risk for Selwood Housing is particularly relevant regarding its loan facilities with Nationwide Building Society and Lloyds Bank plc. Selwood Housing has in place a risk management programme and treasury management strategy that seeks to limit the adverse effects of interest rate fluctuations on its financial performance.

Covenant performance is monitored throughout the year by the Board.

Selwood Housing is not directly exposed to commodity price or exchange rate risk as a result of its operations.

The group maintains effective control over the risks in the business using an online tool, Decision Time. The risk register for Selwood Housing and all its subsidiaries is regularly reviewed by the Board.

The Selwood Housing risk register identifies the most significant risks to the business, the causes of these risks, controls that are in place and mitigating actions that are being taken to reduce the impact and/or probability of those risks. The register covers both strategic and operational risks.

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Group strategic report including the report of the Board for the year ended 31 March 2024 continued

Key risks continued

The major strategic risk areas and mitigating controls identified on the risk register are:

Risk Area Key Controls/Actions
Lack of financial
resilience to withstand
changing socioeconomic
environment		 •
Budget and business plan approved by the Board and reported on
regularly.
•
Financial plan stress tested with various scenarios.
•
Value for money strategy with regular review.
•
New contracts in place for key repairs and maintenance suppliers.
•
Contracts for supply of goods and services are regularly reviewed.
•
Identify and monitor appropriate benchmarking.
Asset management –
providing homes that are
decent, warm and meet
required need		 •
Asset management strategy and plan reported to Group Asset and
Development Committee (GADC) on a quarterly basis.
•
Provision for expenditure in financial plan to get properties to EPC C
by 2030 and net zero carbon by 2050.
•
Internal stock condition survey target in place.
•
Budgeting and forecast process and subsequent monitoring.
•
Contract management and procurement processes in place.
•
Damp and mould action plan monitored by GADC.
•
Internal stock condition survey target of 205 per annum
Risk that people and
culture do not allow us to
deliver strategic
objectives		 •
Executive portfolio Board in place to prioritise projects and agree
resource allocation.
•
Project Brief and Business Case approval process in place.
•
Personal performance review process, incorporating skills and
development plans.
•
Management development and training in place.
•
Professional development for relevant staff.
•
Flexible working policy determines approach to hybrid working.
•
Training and development programmes for digital skills.
New homes delivery does
not meet corporate plan
targets		 •
Development strategy approved by the Board and progress reviewed
on a quarterly basis by GADC.
•
Comprehensive monitoring and reporting of progress with the
development programme.
•
Sites, suppliers, and key materials reviewed daily.
•
Regular dialogues with relevant local authorities, agents, developers,
and landowners to seek future opportunities.
•
Design and quality specifications meet the Selwood Housing
strategy.
Technology failures that
disrupt business
(excluding cyber-attack)		 •
Management plan developed on back of service strategy.
•
Policies and procedures in place and reviewed against framework.
•
Regular account management meetings with third party suppliers.
•
Portal in place for new Dynamics based upgrades.
•
Documentation of all legacy systems in place
Risk of Cyber security
attack		 •
ICT and data protection policies in place.
•
Internal periodic reviews to ensure appropriate security levels in
place.
•
Disciplinary procedures in place.
•
Vulnerability scanner to review potential security issues.
•
Business continuity plan includes plan to address cyber risks.

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Environmental, Social & Governance (ESG) matters

Selwood Housing is committed to its environmental, social and governance aims in providing affordable homes both now and into the future, delivering these to high environmental standards possible whilst meeting our regulatory and governance requirements. Selwood issued our second ESG report in 2023 after adopting the principles of the sustainability for reporting standard (SRS) and aligning to key strategies including how we build new and manage our existing homes.

Environmental

Selwood Housing has developed a carbon reduction strategy and action plan that aims to ensure all homes meet SAP C standard by 2030 and introduces new low carbon and renewable technologies to meet the 2050 net carbon zero targets. Our newly developed properties achieve very high environmental standards, and we are continuing to invest to improve the environmental performance of our existing housing properties. One of our key performance indicators is the average SAP rating achieved across all housing properties, which is a measure of their environmental performance.

Streamlined Energy and Carbon Reporting

Selwood Housing have generated a Streamlined Energy and Carbon Reporting (SECR) statement to comply with the latest SECR Regulations (2019). This report presents a full 3rd party verified SECR statement, compared to the previous financial year’s usage, for use in Selwood Housing’s annual reporting. All emissions throughout this report are displayed in terms of carbon dioxide equivalents (CO2e) and have been rounded to 2 decimal places.

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Energy efficiency action statement

Reported emissions and energy use data for 1st April 2023 – 31st March 2024 Reported emissions and energy use data for 1st April 2023 – 31st March 2024 Reported emissions and energy use data for 1st April 2023 – 31st March 2024
Current reporting year 1st April Previous reporting year 1st April
2023 – 31st March 2024 2022 – 31st March 2023
Energy consumption used to *Gas: 1,170,970 kWh Gas: 1,361,941 kWh
calculate emissions: /kWh *Electricity: 835,169 kWh Electricity: 985,237 kWh
[mandatory] – optional to provide Transport fuel: 1,301,138 kWh Transport fuel: 1,631,429 kWh
separate figures for gas, electricity,
transport fuel and other energy
Sources Total:
3,307,277 kWh		 Total:
3,978,607 kWh
Emissions from combustion of gas 214.20 tonnes CO2e1 **248.61 tonnes CO2e **
tCO2e (Scope 1) [mandatory] 11.25 tonnes CO2e office usage 11.26 tonnes CO2e office usage
13.75 tonnes CO2e communal areas 27.16 tonnes CO2e communal areas
189.20 tonnes CO2e communal heating 210.19 tonnes CO2e communal heating
systems systems
Emissions from combustion of fuel **311.08 tonnes CO2e ** **393.31 tonnes CO2e **
for transport purposes (Scope 1) (in-house maintenance fleet) (in-house maintenance fleet)
[mandatory]
Emissions from purchased electricity 172.94 tonnes CO2e1 **190.52 tonnes CO2e **
(Scope 2, location-based) 17.17 tonnes CO2e office usage 10.01 tonnes CO2e office usage

[mandatory]		 155.77 tonnes CO2e communal areas 180.51 tonnes CO2e communal areas
See below for transmission and See below for transmission and
distribution losses distribution losses
Total gross CO2e based on above - **698.23 tonnes CO2e ** **832.44 tonnes CO2e **
[mandatory] Excludes scope 3 emissions Excludes scope 3 emissions
Intensity ratio: tCO2e gross figure 101.75 kgCO2per home managed 124.39 kgCO2per home managed
based from mandatory fields above/ (exc. office emissions) (exc. office emissions)
e.g. £100,000 revenue [mandatory]
Office intensity: 17.22 kgCO2per Office intensity: 12.25 kgCO2per
m2 (includes T&D losses) m2 (includes T&D losses)
Methodology [mandatory] SHIFT methodologySECR Reporting SHIFT Environment
Using DEFRA (2023) Conversion Factors in line with Environmental
Reporting Guidelines (2019) as the majority of the financial year falls
into the calendar year 2023. Comparison data from the previous
year’s SECR is using DEFRA 2022 Conversion Factors.

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Energy efficiency action statement continued

Emissions from purchase of electricity, Emissions from purchase of electricity, Only reporting on location based Only reporting on location based Only reporting on location based
heat, steam and cooling purchased for
own use (Scope 2,
market-based) / tCO2e [optional]
Emissions from generation of electricity 14.96 tonnes CO2eTransmission 17.43 tonnes CO2eTransmission
that is consumed in a transmission and and distribution (T&D) losses and distribution (T&D) losses
distribution system for which the associated with UK electricity associated with UK electricity
company does not own or control (Scope
3) / tCO2e
[optional]
Emissions from employee business travel 31.78 tonnes CO2e 32.09 tonnes CO2e
for which the company does not own or 31.78 tonnes CO2e employee vehicles 32.03 tonnes CO2e employee vehicles
control (Scope 3) / tCO2e [optional] 0.00 (Nil) tonnes CO2e public 0.06 tonnes CO2e public transport
transport
Emissions from leased assets, The regulated emissions from the The regulated emissions from the
franchises, and outsourced activities independently heated homes we independently heated homes we manage
(Scope 3) / tCO2e [optional] manage far outweigh our operational
far outweigh our operational emissions and
emissions and are therefore reported are therefore reported here on a voluntary
here on a voluntary basis. Our SHIFT basis. Our SHIFT methodology estimated
methodology estimated emissions at emissions at 16,733.13 tonnes in total, or
16,041.41 tonnes in total, or 2.47 2.61 tonnes per home managed.
tonnesper home managed.
Total gross Scope 3 emissions / 16,088.15 tonnes CO2e 16,782.65 tonnes CO2e
tCO2e [optional]
Total gross Scope 1, Scope 2 16,786.38 tonnes CO2e 17,615.09 tonnes CO2e
[location / market] & Scope 3
emissions / tCO2e [optional]
Additional intensity ratio: tCO2e net 2.55 tonnes per home managed 2.70 tonnes per home managed
figure / e.g. £100,000 revenue for total Scope 1, 2 and 3 for total Scope 1, 2 and 3
[optional] emissions recorded. emissions recorded.
Third Party verification [optional] SHIFT Environment

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Energy efficiency action statement continued

During the period 1st April 2023 to 31st March 2024, we installed:

Some of the work in the upgrades listed above form part of the programme of works that is utilising the £1.4m Social Housing Decarbonisation Funding (SHDF) that was secured during the year to deliver fabric first decarbonisation of our properties that have an EPC rating below EPC C. This work will continue throughout 2024, completing in March 2025. We have already started to plan for the next SHDF wave of funding (wave 3) to continue our programme beyond 2025. This will support our target of ensuring all our properties are EPC C and above by 2030.

Social

Affordability

The Valuation Office Agency sets the Local Housing Allowance (LHA) affordability criteria at the 30th centile point between what, in the local rent officer’s opinion, are the highest and lowest non-exceptional rent in a Broad Rental Market Area. These statistics are used as a reference point for housing benefit and are a good indication of rent levels which are affordable in an area. Our valuer’s have compared our rents with the average sector rent and LHA in the same localities. Selwood Housing’s rents are demonstrably lower than those of other housing associations in the same area and are affordable when compared with the local housing allowance.

Scrutiny

At the start of the financial year there was a complete change in personnel of the Involvement & Communities Team and considerable change in personnel of the scrutiny team. Whilst this impacted heavily on time and resource for a period, it has meant an exciting transition with the two teams growing together. I&C have supported the remaining members, including the new chair, to recruit new volunteers and form a fully functioning team. A recruitment drive in April saw two new members join. They have all undergone induction, mandatory training and continuous development training. They are all members of TPAS (the national organisation on tenant participation and engagement experts). A new vice chair was recently elected.

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The scrutiny team have been monitoring progress from their completed review into operational customer communications. Their recommendations have seen the creation of:

The team then undertook a further review into Selwood Housing’s Damp & Mould Services. Working with TPAS, the review was carried out using their new ‘bootcamp’ method in a one-day workshop. Seven additional customers attended and alongside the scrutiny team members they reviewed and discussed the new service that had been presented to them by staff and managers. They analysed what worked and where there were gaps. Nine recommendations were then proposed at that session and seven have been adopted. The scrutiny team then carried out a phone survey to hear from a wider representation of our customer-base before completing their report which is currently with management for a response ahead of submission to Board.

Working with the business performance & insight team we produce an information pack to share with the scrutiny team ahead of quarterly business meetings, so that they have the key information on ‘Rant & Rave’ customer surveys, Tenant Satisfaction Measure data and finance & performance ahead of the meeting presentations. We created a new Sharepoint site for the scrutiny team which helps with transparency of information sharing, teamwork and ensures higher security of shared documents. All of this helps scrutiny keep informed so they can best question our services and operation.

Together with Tenants:

Selwood Housing have adopted the National Housing Federation’s Together with Tenants Charter. We agreed an action plan with the scrutiny team and with heads of service as to how we meet the charter’s 6 commitments. Ahead of each quarterly business meeting the I&C team provide our scrutiny team with written updates on the progress of each action within the plan. This allows them time to reflect, discuss and bring questions/challenges to the quarterly business meeting.

Involvement:

Customers who have signed up to our Make a Difference list (a ‘warm list’ of over 1000 customers who wish to hear more about involvement opportunities) were invited to participate in four task & finish involvement projects over the year. 23 customers were involved in these in-person and digital sessions:

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Involvement: continued

In June 2023 the I&C team worked with the Marketing & Communications team to create a new Customer Involvement newsletter. The I&C team now send this monthly mailout to the 1,050 customers on our make a difference list, advertising forthcoming opportunities to get involved and sharing ‘You Said, We Did’ feedback on recent projects and policy reviews. This maintains regular engagement, interest and recognises the value of our volunteers and the importance Selwood Housing puts on hearing our customers’ voices. We currently have an open rate of above 50% for our monthly mailouts. We continue to work closely with the Marketing & Communications team to promote our work both internally & externally through our OurPlace team page, the Website ‘Get Involved’ pages, articles in the Customer Newsletter, on our Socials and in Staff Brief, including the recent Meet the I&C Team video.

Since the new I&C team have been in place we have started collecting EDI information anonymously from involved customers who are willing to share their details. This is to benchmark the diversity of those we are reaching, so that we can make necessary adjustments to improve engagement. We will start to evaluate this as part of our ongoing benchmarking, at the end of each quarter.

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Complaints Forum:

Initial support for the newly created customer complaints forum: support in their quarterly meetings (for first 3 quarters until established), funding and administration of expenses & incentives, reporting & promotion of their work as well as advice & support to their coordinator on volunteer management and engagement. We have helped recruit three new customers, so now there are six permanently involved members in the group that every quarter review the process of five recently closed complaints and score them against set criteria. The complaints’ coordinator and head of housing review this and relevant action is taken.

Decarbonisation project – resident engagement:

In September the I&C team organised, promoted and facilitated a drop-in session for customers who would be having decarbonisation energy upgrades in their home. This gave them the opportunity to engage with the management team and contractors and have their questions or any concerns answered. 17 customers attended this event. The I&C team also provided resources for all residents that detailed information about how to best make use of the new systems for example how to benefit from solar panels. The I&C team created an FAQs sheet following this dropin session and then door-knocked all properties of customers who couldn’t attend and shared that information with them, giving another opportunity for questions to the contractors and property team. In October the I&C team supported the property team and contractors to door-knock all properties at the second phase of the decarbonisation scheme to remind customers of the forthcoming surveys and to answer any initial queries. The I&C team then shadowed contractors in property surveys and took part in a training session on using new heating systems. We continue to be part of the ongoing Steering Group and have further resident engagement and support planned for the further phases of the project.

Communities:

The I&C team are a key partner in the priority neighbourhoods’ project, working in Westbury and Warminster communities during 2023. We supported practical community tasks such as estate walkabouts and clear-ups and attended the regular project team meetings. The I&C team have led on the marketing & communications of the project with promotion of events as well as internal & external publicity of successes. We created an initial stakeholder mapping exercise and have engaged with key stakeholders, starting initial conversations and building relationships to create legacy after the project finishes. We have shared funding to enable two projects to go ahead: improvements to a community hub in Westbury and accessibility to a community garden in Warminster. We are currently supporting the Warminster project in applying for Area Board, and Police & Crime Commissioner grants, having already secured £5,000 from the Town Council.

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Communities: continued

These monies will fund a joint project with Wiltshire Police to install & manage CCTV in one of our neighbourhoods with high criminal activity and anti-social behaviour.

Stronger Communities Funding:

As a new team we looked at processes and criteria to ensure that the funding we distribute is best directed at our customers and in our neighbourhoods. We have made the process more efficient with four application windows open throughout the year. During 2023-2024 we distributed £22,835 from our Stronger Communities Fund to enable 15 community projects across 10 towns & villages where we have our housing stock.

We also worked with the Priority Neighbourhoods’ Project to fund two additional projects at £2,000 each:

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Stronger Communities Funding: continued

As part of our application process we request details of total project cost, breakdown of all costs and how much of the project is self-funded. We also ask if they’re applying to other grant funders and what amount they’ve requested. In most cases, being approved for one grant will often unlock access to another grant, therefore helping secure more funding for the community. We only pay out once any necessary matchfunding is confirmed so that we know the project is viable. We can then calculate how much money has been brought into our communities in total. Accumulatively these 15 projects secured an additional £170,446 in addition to the money donated from us, to be spent in our communities.

We are into the third and final year of a three-year funding commitment to local charity, Trowbridge Futures. This £30,000 contract helps fund a neighbourhood connector who is working across our three main housing estates in Trowbridge. Amongst other things they support a kindness cafe, veterans’ group, community fridge and cookery sessions. They undertake door knocking as part of a community conversation project, have supported the development of a community association and centre. They have worked with the local authority’s migration and resettlement team to support delivery of English language courses.

The new I&C team have worked with the Procurement team to reinstall the social value clause in appropriate high value contracts. It is proposed social value inclusion should be considered in high value arrangements over £1 million where the benefits are known to be available and worthwhile. Payments will be made on an annual basis, on the anniversary of the contract’s commencement. This decision will guarantee ongoing funding to boost the Stronger Community Fund and allow us to continue supporting our communities.

Resident Support

Selwood Housing’s charitable donations were £28.5k (2023: £18k) during the year to 31 March 2024. In addition to this we allow various community groups to utilise two garages free of charge and we lease The Hub to Trowbridge Town Council for a peppercorn rent. We estimate the rental income foregone on these to be equal to donations of around £9k (2023: £7k).

Governance

Selwood Housing is fully committed to the principles of openness, accountability, and competence. We welcome and support the principal recommendations laid down in the National Housing Federation’s Excellence in Governance, Code for members (revised 2020). The code was reviewed and adopted by the Board in December 2021. The Board concluded that we are fully compliant with the code.

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Staff wellbeing

Our ability to meet our objectives and commitments to tenants and other customers in an efficient and effective manner depends on the expertise, commitment, and enthusiasm of all our employees. We take seriously the need to be an employer that recruits high calibre staff, we then ensure they are motivated, skilled, and able to deliver for our customers and provide an excellent service. This is a guiding principle in our corporate strategy, as described above.

Selwood Housing provides information on its objectives, progress and activities through regular team meetings, staff briefings, CEO monthly updates and our staff forum. Selwood Housing seeks employees’ views on how to improve services and on matters of common concern through our monthly pulse survey. The executive team also take part in a monthly live question and answer session with all staff. The group supports the employment of a diverse workforce, both in recruitment and in the retention of employees.

Board and executive composition

At 31 March 2024 Selwood Housing’s Board was made up of six females and three male directors. The senior management team was made up of three male and two female members.

Committees of the group Board

During the year the following committees were in operation:

All other matters including strategy and business planning and other financial matters are considered directly by the full group Board.

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Board and executive directors

The group Board and executive directors of Selwood Housing who served during the financial year are listed on page 1. The group Board comprises of nine members, who are regarded as non-executive directors for legal purposes.

The Board is responsible for the governance of Selwood Housing Group. Their role in practice may be summarised as:

Board members regularly participate in training and development to ensure they maintain and develop their skills and have a high level of awareness of current issues in the social housing sector.

Board members undergo a formal appraisal of performance on an annual basis. The format of the appraisal involves a review of everyone’s performance over the year and an assessment of training, skills, and development needs.

Each Board member is expected to take responsibility for fulfilling their training plan while Selwood Housing Group is committed to ensuring that resources are in place to enable this. As part of the appraisal process the Board also considers its collective effectiveness in delivering the aims and objectives in the corporate plan.

At 31 March 2024, the executive directors consisted of the group chief executive, the group finance director, the group development director, the group operations director, the group transformation and people director.

Insurance policies indemnify Board members and staff against liability when acting for Selwood Housing. These policies were in force throughout the financial year and at the date of approval of the financial statements. The indemnity is a qualifying third-party indemnity.

Board members are recruited based on selecting skill sets, the demographic makeup and experience that are required for the existing Board.

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Board and executive directors continued

Candidates are short-listed by the interview panel made up of the group chief executive, two appropriate Board members and the group transformation and people director against the Board director specification, which is contained in Selwood Housing’s governance manual. Interviews are carried out by the interview panel and the best candidate for the role is selected. The procedure used is full, fair, and inclusive. Each new Board member goes through a structured induction.

Remuneration

Board members are remunerated for their services and are entitled to claim out of pocket expenses such as travelling. Travel costs to and from Selwood Housing’s offices are reimbursed as a taxable benefit. Some Board members choose not to reclaim their travel costs.

Payments to Board members are shown in note 10 to the financial statements, which shows the actual payments in the financial year, the level of payments and the proportion which the total amount paid forms of Selwood Housing’s annual turnover.

Any changes in remuneration do not take effect until approved by the company in the general meeting and increases to Board members’ remuneration do not take effect more frequently than once every three years.

The Board decides the pay and benefits of the executive directors and agrees the terms on which the chief executive can set other staff salaries, within the agreed market pay based framework.

The executive directors are either members of the Wiltshire Pension Scheme or members of the group personal pension plan, depending on when they joined the organisation. They participate in the scheme on the same terms as all other eligible staff. Selwood Housing contributes to the schemes on behalf of all eligible staff and does not offer alternative benefits such as cars.

There are no service contracts for executive directors. They are employed on similar terms to other staff, with a notice period of three months.

Reserves policy

Selwood Housing’s reserves are invested in its properties. They have been used to fund the development of new homes for letting to people in housing need and the improvement and replacement of components in existing properties. They provide working capital and help Selwood Housing to maximise its borrowing capacity. Selwood Housing sets a target for reserves in its 30-year business plan and ensures that actual reserves stay in line with the plan.

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Regulatory standards

The Board undertook a review of Selwood Housing’s compliance with the Regulator of Social Housing’s governance and financial viability standard in December 2023 and the Board concluded that Selwood Housing complies with the standard.

Value for Money

Selwood Housing Group’s approach to value for money (VfM)

Value for money forms one of the key pillars of our principles and values as outlined in our corporate strategy:

Our VfM strategy was reviewed in 2024 and updated targets agreed with the Board in October 2024.

The aims of our value for money strategy are:

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Value for money for Selwood Housing includes considering:

Value for Money Standard (VfM)

The Regulator of Social Housing (RSH) issued a new VfM Standard in April 2018 which includes a requirement for registered providers to publish their performance against a series of common metrics with which to measure economy, efficiency and effectiveness as set by the Regulator. The table below compares our performance over the last three years with our Housemark peer group, the RSH global accounts performance and our targets for next year.

Performance Metric
2021/22
Actual
2022/23
Actual
2023/24
Target		 2023/24
Actual		 2024/25
Target
2022/23
Housemark
Median
2022/23
Sector
Median ***
Business health % efficiency
Operating margin
- Overall
17.1%
18.1%
17.5%		 18.5% 18.1%
19.2%
18.2%
Operating margin
- Social housing lettings
18.8%
18.9%
16.4%		 18.3% 17.8%
20.0%
19.8%
Interest cover % (EBITDA-MRI)
311.3%
260.4%
102.7%		 126.1% 101%
126.6%
128.4%
Headline social housing cost
per unit £ CPU
£4,343
£4,332
£5,548		 £5,208 £5,961
£4,291
£4,586
Return on capital employed %
1.9%
2.1%
2.5%		 2.6% 2.6%
3.5%
2.8%
Development & investment
New supply delivered %
- Social housing units
2.3%
2.2%
2.1%		 2.4% 2.0%
1.5%
1.3%
Gearing %
31.7%
33.6%
36.7%		 35.5% 37.3%
48.8%
45.3%
Reinvestment %
5.4%
7.2%
7.0%		 7.4% 7.2%
8.3%
6.7%

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Value for Money continued

** Sector median is the latest published sector results (2022/23) reported by the Regulator of Social Housing.

Despite a challenging economic environment where inflation remained high for the year and interest rates maintained their 16-year record high levels, Selwood’s financial performance has been exceptional, achieving value for money results better than target for all 8 regulator measures.

Selwood’s headline social housing cost per unit (CPU) rose by 20% on the previous year however this was only partly due to the inflationary pressures seen in new contracts and higher staffing costs. The vast majority was due to higher volumes of work delivered by the teams in both responsive and planned repairs. An example being the kitchens teams completing more kitchens and bathrooms than forecast.

EBITDA-MRI interest cover (*) fell as expected due to the higher interest costs, however they were 25 basis points better than target and we expect to be able to deliver an EBITDA-MRI higher than 100% in 24/25. We do not have any covenants that are measured by EBITDA-MRI, having amended all of these the previous year. The EBITDA covenants are being comfortably met at almost 4x the required cover. We expect this to remain achievable for the full length of the agreements. We have already started to look at more fixed funding options to hedge the current variable interest rate risks that continue to persist.

Gearing was better than target and well below Selwood’s golden rule target of 50% and the existing loan covenant of 60%. Gearing measures, the relationship between debt and tangible fixed housing assets, and will increase over the next few years as we borrow more money to fund our development programme and meet our environmental targets.

The improved return on capital employed (ROCE) was better than target due to an increase in gains from disposal of fixed assets. The Board agreed to a targeted disposal strategy for properties with low energy efficiency, homes suffering from significant damp and mould issues and other high onward investment requirements. This will result in the disposal of a handful of properties over the coming years which will continue to boost the Selwood ROCE performance.

  • EBITDA-MRI – Earnings Before Interest, Tax, Depreciation, Amortisation – Major Repairs Included

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Value for Money continued

The operating margin declined slightly but not to the levels expected for the year. Our efficiency continues to improve with our responsive repairs’ teams increasing jobs completed per day to 3.2 from 3 jobs per operative per day in the previous year. The successful procurement for three suppliers for our significant building materials spend was completed late in the year but is expected to drive savings into the future across the course of the next 3-5 years.

The transformation project, to develop and expand our system capabilities, improve our processes, and explore further efficiencies has also progressed and in time will also improve the efficiency of our operations. This project continues to require additional staff and investment in new systems in the short term which impacts our operating margin.

It is anticipated that the activities outlined above will help to maintain Selwood’s operating margin at their current levels before increasing in the medium term.

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Value for Money (continued)

The new supply delivery increased during the year to achieve 171 new properties. This is expected to fall to the 150-property target in 24/25 as we reduce the risk of the impact of build cost inflation and possible development delays in the sector. Selwood are still committed to development and our corporate strategy lays out a plan to build 1,700 homes over the next 10 years. This, combined with our commitment to invest in our existing properties, is shown in our re-investment percentage remaining above the median benchmark. Shared ownership demand remains strong, and the Board has agreed to increase to 40% shared ownership for all newly developed properties from the previous 30% level. We will continue to monitor this in our performance triggers to mitigate any risk of unsold properties.

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Value for Money (continued)

In addition to the indicators included in the VfM standard, two key areas of performance monitored by the Board are rent loss due to empty properties as a % of rent due and current tenant arrears net of unpaid housing benefit as a % of rent due. These are financial KPIs but also helps us to fulfil our social purpose:

It has been another good year for our lettings team, both in terms of performance and of adapting service delivery to deliver in a changing environment. During the year the team let 402 homes and the neighbourhoods team facilitated 96 mutual exchanges. At the end of March 2024, the void loss attributable to rented dwellings (including shared ownership) was 0.96% (March 2023 0.63%).

The graph below compares the actual performance and target for Selwood Housing with the quartiles calculated by HouseMark for our benchmarking group during 2023/24:

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Value for Money (continued)

Despite the increased cost of living the collection of rent and service charges remains strong. This is in part due to our robust pre-tenancy assessment of affordability, the firm, consistent and timely intervention of the income team, and timely referrals to our tenancy sustainment coordinators and financial inclusion partners.

The strong collection ethos has shone through again this year with only 5 evictions taking place. The principles of timely support and decisive intervention have resulted in another top-quartile performance from the income team of 0.76% current customer arrears.

2023 has seen the organisation re-join the Housemark benchmarking group. Peer group comparison has validated our income collection performance. Our 2023-year end figure compares favourably against the sector (reported at 3.4%) and a comparable cohort of providers (at 2.9%). Selwood Housing is amongst the best performers in the sector.

Supporting actions to deliver the 24/25 targets

To support the delivery of the targets set out for the value for money metrics shown above, we will:

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Value for Money (continued)

Tenant Satisfaction Measures

Our first set of tenant satisfaction measures to submit to the regulator have been very positive. All our survey measures are in the upper quartile of benchmark results that we have seen across the sector during the year, with overall satisfaction at 84.1%. This is based on feedback from 591 customers completing telephone surveys during the year. The full results are shown below:

2023/24 survey measures- LCRA only Selwood
2023/24
TP01 Proportion of respondents who report that they are satisfied with the overall service
from their landlord.

84.1%
TP02 Proportion of respondents who have received a repair in the last 12 months who
report that they are satisfied with the overall repairs service.
82.1%
TP03 Proportion of respondents who have received a repair in the last 12 months who
report that they are satisfied with the time taken to complete their most recent
repair.
82.5%
TP04 Proportion of respondents who report that they are satisfied that their home is well
maintained.
83.2%
TP05 Proportion of respondents who report that they are satisfied that their home is
safe.
87.2%
TP06 Proportion of respondents who report that they are satisfied that their landlord
listens to tenant views and acts upon them.
72.0%
TP07 Proportion of respondents who report that they are satisfied that their landlord
keeps them informed about things that matter to them.
89.0%
TP08 Proportion of respondents who report that they agree their landlord treats them
fairly and with respect.
86.7%
TP09 Proportion of respondents who report making a complaint in the last 12 months
who are satisfied with their landlord’s approach to complaints handling.
46.0%
TP10 Proportion of respondents with communal areas who report that they are satisfied
that their landlord keeps communal areas clean and well maintained.
77.5%
TP11 Proportion of respondents who report that they are satisfied that their landlord
makes a positive contribution to the neighbourhood.
79.3%
TP12 Proportion of respondents who report that they are satisfied with their landlord’s
approach to handling anti-social behaviour.
69.3%

The non-survey measures are also positive with the majority in either the upper or median quartile of benchmark results that we have seen across the sector during the year.

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2023/24 Q3 non-survey measures Selwood
2023/24
BS01 Proportion of homes for which all required gas safety checks have been carried
out.
100.0%
BS02 Proportion of homes for which all required fire risk assessments have been
carried out.
100.0%
BS03 Proportion of homes for which all required asbestos management surveys or re-
inspections have been carried out.
90.9%
BS04 Proportion of homes for which all required legionella risk assessments have
been carried out.
100.0%
BS05 Proportion of homes for which all required communal passenger lift safety
checks have been carried out.
100.0%
RP01 Proportion of homes that do not meet the Decent Homes Standard - LCRA only
-annual
1.6%
RP02 (1) Proportion of non-emergency responsive repairs completed within the
landlord’s target timescale.
85.2%
RP02 (2) Proportion of emergency responsive repairs completed within the landlord’s
target timescale
99.7%
CH01 (1) Number of stage one complaints received per 1,000 homes.
58.5
CH01 (2)
Number of stage two complaints received per 1,000 homes.
9.4

CH02 (1)
Proportion of stage one complaints responded to within the Housing
Ombudsman’s Complaint Handling Code timescales.
92.6%
CH02 (2) Proportion of stage two complaints responded to within the Housing
Ombudsman’s Complaint Handling Code timescales.
88.9%
NM01 Number of anti-social behaviour cases, opened per 1,000 homes.
32.1
NM01 (2)
Number of anti-social behaviour cases that involve hate incidents opened per
1,000 homes
0.3

Section 172 Statement

The Board of directors, in line with their duties under s172 of the Companies Act 2006, act in a way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its stakeholders as a whole, and in doing so have regard to a range of matters including:

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Key decisions and matters that are of strategic importance to the company are appropriately informed by s172 factors. These include but are not limited to:

Through an open and transparent dialogue with our key stakeholders, we have been able to develop a clear understanding of their needs, assess their perspectives and monitor their impact on our strategic ambition and culture.

As part of the Board’s decision-making process, the Board considers the potential impact of decisions on relevant stakeholders whilst also having regard to a number of broader factors, including the impact of the company’s operations on the community and environment, responsible business practices and the likely consequences of decisions in the long term.

In making material decisions the Board has sought to deliver benefit to our customers and the communities that we build in, provide secure employment opportunities and fair economic relationships with our suppliers.

Internal controls assurance

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

The Board receives and considers annual reports at the group audit and finance committee, group asset and development committee and management on the management of risk and control arrangements. The Board review the strategic risk register at each of its meetings and receive the full risk register annually for review. The group audit and finance committee set the plans for internal audits based on the risk register to ensure that appropriate work is being undertaken to mitigate risks with corrective actions, where necessary.

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Internal controls assurance continued

The process for identifying, evaluating, and managing the strategic risks faced by Selwood Housing is ongoing, and has been in place prior to and throughout the period commencing 1 April 2023 up to the date of approval of the annual report and financial statements. The system for monitoring risk management is intuitive, interactive and puts emphasis on ensuring that good controls are in place and actions are progressed to deliver improvement in risk scores.

The arrangements adopted by the Board in reviewing the effectiveness of the system of internal control, together with some of the key elements of the control framework include:

The Board cannot delegate ultimate responsibility for the system of internal control, but it can, and has, delegated authority to the group audit and finance committee to review the effectiveness of the system of internal control regularly. The Board receives minutes from each committee meeting.

The means by which the group audit and finance committee reviews the effectiveness of the system of internal control include considering internal audit reports, management assurances and the external audit reports. The committee agrees and monitors a three-year rolling programme of internal audit reviews, which have been undertaken by an independent audit firm, TIAA Limited.

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Internal controls assurance continued

The group audit and finance committee has received the executive team’s annual review of the effectiveness of the system of internal control for Selwood Housing, together with the annual report of the internal auditor and has reported its findings to the Board.

The internal auditors concluded in their annual report that “TIAA is satisfied that, for the areas reviewed during the year, Selwood Housing Group, has reasonable and effective risk management, control and governance processes in place”. The Board has in turn conducted its own annual review of the effectiveness of the system of internal control and considers there is nothing adverse to bring to the attention of company members.

Statement of responsibilities of the Board

The Board are responsible for preparing the strategic report, annual report, and the financial statements in accordance with applicable law and regulations.

Company law and social housing legislation require the Board to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Board must not approve the financial statements unless they are satisfied that they give a true and fair view of the situation of the group and company and of the surplus of the group and company for that period.

In preparing these financial statements, the Board are required to:

The Board are responsible for keeping adequate accounting records that are sufficient to show and explain the group and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing 2022. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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Statement of responsibilities of the Board continued

The Board members are responsible for ensuring that the report of the Board is prepared in accordance with the Statement of Recommended Practice for registered social housing providers 2018.

Financial statements are published on the group’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the group’s website is the responsibility of the Board. The Board responsibility also extends to the ongoing integrity of the financial statements contained therein.

Going concern

After making enquiries the Board has a reasonable expectation that Selwood Housing has adequate resources to continue in operational existence for the foreseeable future. The Board defines the foreseeable future as at least 12 months from the date of signing the financial statements. For this reason, it continues to adopt the going concern basis in the financial statements.

Annual General Meeting

The Annual General Meeting is planned to be held on 2[nd] October 2024 in the Boardroom of Selwood Housing’s office and available on line.

Independent auditor

A resolution to appoint Selwood Housing’s auditor will be proposed at the forthcoming Annual General Meeting.

Statement of disclosure of information to auditor

So far as the Board is aware, there is no relevant audit information of which the company’s auditor is unaware. Each director has taken all the steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company’s auditor is aware of that information.

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Approval

The report of the Board of directors including the strategic report was approved by the Board on 3 July 2024 and signed on its behalf by:

Sheila Lewis Chair 3 July 2024

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SELWOOD HOUSING SOCIETY LIMITED

Opinion

We have audited the financial statements of Selwood Housing Society Limited (“the Company”) and its subsidiaries (“the Group”) for the year ended 31 March 2024 which comprise the consolidated and company statement of comprehensive income, the consolidated and company statement of financial position, the consolidated and company statements of changes in reserves, , the consolidated 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group and 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 or Group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The Board are responsible for the other information. Other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information 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 including the letter from the chair and Group Strategic Report including the

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operating and financial review 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 during the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained during the audit, we have not identified material misstatements in the Strategic report and Report of the Directors.

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

Responsibilities of the Board

As explained more fully in the statement of responsibilities of the Board set out on page 25, 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 members 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 Group and 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 Group or 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.

39

Selwood Housing Society Ltd

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 based on 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:

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

40

Selwood Housing Society Ltd

override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

Use of our report

This report is made solely to the members of the Company, as a body, in accordance with the Housing and Regeneration Act 2008 and Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the members as a body, for our audit work, for this report, or for the opinions we have formed.

Lee Cartwright (Senior Statutory Auditor) For and on behalf of Beever and Struthers, statutory auditor 20 Colmore Circus Queensway Birmingham B4 6AT Date: 09.07.24

41

Selwood Housing Society Ltd

Consolidated and company statement of comprehensive income for the year ended 31 March 2024

Turnover
Cost of sales
Operating costs
Gain on disposal of fixed assets
Operating surplus
Other interest receivable and similar income
Interest and financing costs
Other finance costs
Movement in fair value of investment properties
Surplus before taxation
Taxation on surplus
Surplus for the financial year
Actuarial loss / gain on defined benefit pension
scheme
Total comprehensive income for year		 Note Group
Group
Company
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
4
4
4
11
12
26
16
13
26		 52,699
45,967
52,772
45,951
(5,067)
(3,455)
(5,067)
(3,455)
(37,993)
(34,147)
(37,996)
(34,155)
3,401
1,652
3,401
1,652
13,040
10,017
13,110
9,993
136
53
117
49
(6,007)
(3,835)
(6,007)
(3,835)
9
(126)
9
(126)
(12)
1
(12)
1
7,166
6,110
7,217
6,082
3
2
0
0
7,169
6,112
7,217
6,082
(368)
4,736
(368)
4,736
6,801
10,848
6,849
10,818

The notes on pages 47 to 89 form part of these financial statements.

All activities relate to continuing operations.

Charity Commission Registration No 1141124 Company Limited by Guarantee - Registration No. 4168336 Registered with the Regulator of Social Housing No. LH4097

42

Selwood Housing Society Ltd

Consolidated and company statement of financial position at 31 March 2024

Note
Fixed assets
Tangible fixed assets - housing properties
14
Tangible fixed assets - other
15
Investment properties
16
Investments in companies
17
Current assets
Stocks
19
Debtors - receivable within 1 year
20
Cash and cash equivalents
20a
Creditors: amounts falling due within
1 year
21
Net current assets / (liabilities)
Total assets less current liabilities
Creditors: amounts falling due after
more than 1 year
22
Net assets excluding pension liability
Provision for deferred tax
30
Pension liability
26
Net assets
Capital and reserves
Income and expenditure reserve
Revaluation reserve		 Group
Group
Company
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000

494,602
471,855
494,654
471,907

3,655
3,575
3,356
3,247

340
352
340
352

125
125
3,225
2,225
498,722
475,907
501,575
477,731

6,103
4,840
4,432
4,840

4,596
3,177
4,288
3,161
6,601
8,720
5,594
6,688
17,300
16,737
14,314
14,689
(17,730)
(18,023)
(17,734)
(17,987)
(430)
(1,286)
(3,420)
(3,298)
498,292
474,621
498,155
474,433
(211,431)
(194,559)
(211,431)
(194,559)
286,861
280,062
286,724
279,874

(4)
(7)
0
0
0
0
0
0
286,857
280,055
286,724
279,874
157,448
148,691
157,315
148,510
129,409
131,364
129,409
131,364
286,857
280,055
286,724
279,874

The notes on pages 47 to 89 form part of these financial statements.

The financial statements were approved by the Board of Directors and authorised for issue on 3 July 2024

Sheila Lewis Chair

Mark Mayler Secretary

Charity Commission Registration No 1141124 Company Limited by Guarantee - Registration No. 4168336 Registered with the Regulator of Social Housing No. LH4097

43

Selwood Housing Society Ltd

Consolidated statement of changes in reserves for the year ended 31 March 2024

Group
Opening funds April 2022
Total comprehensive income for the year
Actuarial gains on defined benefit pension
scheme
Total comprehensive income
Transfer from revaluation reserve to income and
expenditure
Opening funds March 2023
Total comprehensive income for the year
Actuarial loss on defined benefit pension scheme
Total comprehensive income
Transfer from revaluation reserve to income and
expenditure
Closing total funds March 2024		 I&E
Revaluation
Total
Reserve
Reserve
£'000
£'000
£'000
136,349
132,858
269,207
6,112
0
6,112
4,736
0
4,736
10,848
0
10,848
1,494
(1,494)
0
148,691
131,364
280,055
7,169
0
7,169
(368)
0
(368)
6,801
0
6,801
1,955
(1,955)
0
157,448
129,409
286,857

The notes on pages 47 to 89 form part of these financial statements.

44

Selwood Housing Society Ltd

Company statement of changes in reserves for the year ended 31 March 2024

Company
Opening funds April 2022
Total comprehensive income for the year
Actuarial gains on defined benefit pension
scheme
Total comprehensive income
Transfer from revaluation reserve to income and
expenditure
Opening funds April 2023
Total comprehensive income for the year
Actuarial loss on defined benefit pension
scheme
Total comprehensive income
Transfer from revaluation reserve to income and
expenditure
Closing total funds March 2024		 I&E
Revaluation
Total
Reserve
Reserve
£'000
£'000
£'000
136,198
132,858 269,056
6,082
0
6,082
4,736
0
4,736
10,818
0
10,818
1,494
(1,494)
0
148,510
131,364
279,874
7,217
0
7,217
(368)
0
(368)
6,850
0
6,850
1,955
(1,955)
0
157,315
129,409
286,724

The notes on pages 47 to 89 form part of these financial statements.

45

Selwood Housing Society Ltd

Consolidated statement of cash flows for the year ended 31 March 2024

Note
Cash flows from operating activities
Surplus for the financial year
Adjustments for:
Depreciation of fixed assets - housing properties
14
Depreciation of fixed assets - other
15
Amortised grant
23
Interest payable and finance costs
Interest received
Difference between net pension expenses and
cash contribution
Proceeds from sale of fixed assets- housing
properties
11
Decrease /(Increase) in trade and other debtors
Decrease /(Increase) in stocks
Increase in trade and other creditors
Carrying amount of disposals
Movement in fair value of investment properties
Cash from operations
Taxation paid
Net cash generated from operating activities
Cash flows from investing activities
Proceeds from sale of fixed assets - housing
properties
11
Purchase of fixed assets - housing properties
14
Purchase of fixed assets - other
15
Purchase of investments
Receipt of grant
23
Interest received
Net cash from investing activities
Cashflows from financing activities
Interest paid
12
Taxation Paid
New loans
Debt issue costs incurred
Repayment of loans
25
Net cash used in financing activities
Net (decrease) / increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2024
2023
£'000
£'000
7,166
6,110
8,649
8,063
273
866
(413)
(385)
5,998
3,961
(136)
(53)
(359)
(131)
(5,043)
(3,043)
(1,282)
(5)
(1,263)
(788)
(1,138)
959
2,712
1,463
12
(1)
15,177
17,016
0
0
15,177
17,016
5,043
3,043
(34,106)
(33,063)
(357)
(691)
0
(100)
482
1,446
136
53
(28,802)
(29,311)
(6,007)
(3,835)
0
0
24,500
20,000
(138)
377
(6,849)
(4,390)
11,506
12,152
(2,119)
(144)
8,720
8,864
6,601
8,720

46

Selwood Housing Society Ltd

Notes to the financial statements For the year ended 31 March 2024

Index of notes

General notes

  1. Legal status

  2. Accounting policies

  3. Judgements in applying accounting policies and key sources of estimation

  4. uncertainty

Statement of comprehensive income related notes

  1. Particulars of turnover, cost of sales, operating costs, and operating surplus

  2. Income and expenditure from social housing lettings

  3. Units of housing stock

  4. Operating surplus

  5. Employees

  6. Directors’ and senior executive remuneration

  7. Board members

  8. Surplus on disposal of fixed assets

  9. Interest payable and similar charges

  10. Taxation on profit from operating activities

Statement of financial position related notes

  1. Tangible fixed assets – housing properties

  2. Other tangible fixed assets

  3. Investment properties

  4. Fixed asset investments

  5. Subsidiary undertakings / other investments

  6. Properties for sale and other stock

  7. Debtors

  8. 20a.Cash and Cash Equivalents

  9. Creditors: amounts falling due within 1 year

  10. Creditors: amounts falling due after more than 1 year

  11. Deferred capital grant

  12. Recycled capital grant

  13. Loans and borrowings

  14. Pension obligations

  15. Operating leases

  16. Capital commitments

  17. Related party transactions

  18. Provision for liabilities

  19. Net debt reconciliation

47

Selwood Housing Society Ltd

Notes to the financial statements For the year ended 31 March 2024

1 Legal status

Selwood Housing is incorporated in England and Wales under the Companies Act 2006 and is registered with the Regulator of Social Housing. Selwood Housing is a company limited by guarantee. The guarantors are the company members. Selwood Housing is registered with the Charity Commission. The address of the registered office is given on page 1 and the nature of the group’s operations and principal activities are set out in the strategic report. The Society is a public benefit entity.

2 Accounting policies

All accounting policies have been applied consistently year to year.

Basis of accounting

The financial statements of Selwood Housing have been prepared in accordance with applicable law and accounting standards in the United Kingdom, FRS 102 “the Financial Reporting Standard in the United Kingdom and the Republic of Ireland”, the Statement of Recommended Practice (SORP): Accounting by registered social housing providers (update 2018) and the Accounting Direction for Private Registered Providers of Social Housing 2022.

The accounts are prepared under the historic cost basis except for the modification to a fair value basis for investment properties as specified in the accounting policies below.

Consolidation

The consolidated financial statements incorporate the results of Selwood Housing Society Limited and all its subsidiary undertakings for the year. Intragroup transactions and balances have been eliminated on consolidation. Subsidiaries are deconsolidated from the date control ceases.

Going concern

After making enquiries and reviewing the financial plan, the Board has a reasonable expectation that the company and the group have adequate resources to continue in operational existence for the foreseeable future. For this reason, it continues to adopt the going concern basis in the financial statements.

48

Selwood Housing Society Ltd

Notes to the financial statements For the year ended 31 March 2024

2 Accounting policies (continued)

Turnover

Turnover comprises rental income receivable in the year, income from shared ownership first tranche sales, sales of properties built for sale and other services included at the invoiced value (excluding value added tax (VAT)) of goods and services supplied in the year and revenue grants receivable in the year and capitalised capital grants. Rental income is recognised from the point when properties under development reach practical completion or otherwise become available for letting. Income from first tranche sales and sales of properties built for sale is recognised at the legal completion of sale. Income from the supply of goods and services is recognised when those goods or services are provided. Income is measured at the fair value of the consideration received or receivable. All turnover arises in the UK.

Grant income (non-Social Housing Grant)

The treatment of grant income depends on the terms of the funding. Where the grant is not conditional upon specific targets being met, then it is treated as income as it becomes receivable. Where grant income received is conditional upon the completion of certain targets and is returnable to the grant giver if the targets are not met, the income is credited to the Statement of Comprehensive Income as the targets are achieved. Any grants received, where the targets have not yet been achieved, are held as deferred income.

Other grants are receivable from local authorities and other organisations. Grants in respect of revenue expenditure are credited to the Statement of Comprehensive Income in the same period as the expenditure to which they relate.

Value added tax

Selwood Housing Society Ltd is registered for VAT. All amounts disclosed in the financial statements are adjusted to reflect Selwood Housing Society Ltd’s agreed method for the treatment of VAT and the financial statements include VAT to the extent that is suffered by the group and is not recoverable from HM Revenues and Customs. The balance of VAT payable or recoverable at the yearend is included as a current liability or asset.

49

Selwood Housing Society Ltd

Notes to the financial statements For the year ended 31 March 2024

2 Accounting policies (continued)

Taxation

Selwood Housing is a registered charity and as such, is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in furtherance of the charity’s primary objectives, if these profits and surpluses are applied solely for charitable purposes.

Qualifying Charitable Donations of Subsidiaries

The parent company only recognises gift aid income when a qualifying charitable donation is paid by a subsidiary.

Interest

Interest is capitalised on borrowings used to fund new development under construction for the period until the property is available for letting.

Other interest payable, interest receivable and related funding costs are charged to the Statement of Comprehensive Income in the year incurred.

Pensions

Defined benefit scheme

Selwood Housing Society Ltd participates as an admitted body in the Local Government Pension Scheme administered by Wiltshire Council, a defined benefit final salary scheme. The operating costs of providing retirement benefits to participating employees are recognised in the accounting periods in which the benefits are earned. The related finance costs, expected return on assets and any other changes in fair value of the assets and present value of liabilities, are recognised in the accounting period in which they arise.

Pension scheme assets are measured using market value. Pension scheme liabilities are measured using the projected unit actuarial method and are discounted at the current rate of return on a high-quality corporate bond of equivalent terms and currency to the liability. The increase in the present value of the liabilities of Selwood Housing Society Ltd’s defined benefit pension scheme expected to arise from employee service in the period is charged to operating surplus. The expected return on the scheme’s assets and the increase during the year in the present value of the scheme’s liabilities arising from the passage of time are included in operating surplus. Actuarial gains and losses are recognised in the Statement of Comprehensive Income. This pension scheme was closed to new members on 1 October 2010.

50

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

2 Accounting policies (continued)

Defined contribution scheme

Selwood Housing also participates in a defined contribution scheme where the amount charged to the Statement of Comprehensive Income represents the contributions payable to the scheme in respect of the accounting period.

Holiday pay accrual

A liability is recognised to the extent any unused holiday pay entitlement has accrued at the year end and is material; it is carried forward to future periods.

Housing properties

Housing properties are principally dwellings available for rent and are stated at cost less depreciation. Cost includes the cost of acquiring land and buildings, development costs, interest charges incurred during the development period and expenditure incurred in respect of improvements.

Development administration costs are capitalised on an apportionment of the staff time spent on this activity up to the point where the property is available for letting.

Improvements are works which result in an increase in the net rental income, such as a reduction in future maintenance costs, or result in a significant extension of the useful economic life of the property to the business. Only the direct overhead costs associated with new developments or improvements are capitalised.

Works to existing properties which replace a component that has been treated separately for depreciation purposes are capitalised and the replaced component treated as disposed of in the year of replacement.

Shared ownership properties are split proportionally between current and fixed assets based on the element relating to expected first tranche sales.

51

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

2 Accounting policies (continued)

The first tranche proportion is classed as current asset and related sales proceeds included in turnover and the remaining element is classed as fixed asset and included in housing properties at cost, less any provisions needed for depreciation or impairment.

Deemed cost on transition to FRS 102

On transition to FRS 102 the Group took the option of carrying out a one-off valuation exercise of selected housing properties and using that amount as deemed cost. The Group engaged independent valuation specialist Jones Lang LaSalle (JLL) to value properties on an existing use social housing (EUV-SH) basis to determine the deemed cost as at 1 April 2014. The adoption of the deemed cost option resulted in a net increase in fixed assets as at 1 April 2014 of £144.4m revaluation gains which was credited to the revaluation reserve.

Depreciation of Housing properties

Selwood Housing depreciates its housing properties by component on a straightline basis over the estimated useful economic lives of component categories. Freehold land is not depreciated.

The useful economic lives of the components are as follows:

Structure
 100 years
Roofs 60 years
Windows 25 years
Bathrooms 25 years
Kitchens 20 years
Boilers 15 years
PV panels 20 years
Fixtures & Fittings 10 years
Lighting 20 years
Fire Alarms 15 years
Door entry systems 10 years
Electric Heat Pumps 15 years
Air Source Heat Pumps 15 years
Guttering, Soffits & Fixings 30 years
Flat Roofs 30 years
External Wall Insulation 100 years

Housing properties under construction are not depreciated until practical completion. A full year’s depreciation is charged in the year the property is first available for letting.

52

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

2 Accounting policies (continued)

Impairment

Housing properties, which are depreciated over a period more than 50 years, are subject to impairment reviews annually. Other assets are reviewed for impairment if there is an indication that impairment may have occurred.

Where there is evidence of impairment, a detailed assessment is undertaken to compare the carrying amount of assets or cash generating units for which impairment is indicated to their recoverable amounts.

Where necessary, fixed assets are written down to the recoverable amount, being the higher of the fair value less costs to sell or value in use of an asset or cash generating unit. Any such write down is charged to operating surplus.

What constitutes a cash generating unit (CGU) when indicators of impairment require there to be an impairment review. Selwood Housing considers those properties revalued to deemed cost on adoption of FRS102 and within specific schemes as CGU’s.

Social Housing Grant

Social Housing Grant (SHG) is receivable from Homes England. Where properties are held at deemed cost under the transition to FRS102, the related SHG was initially recognised under the performance model. Subsequent grant is accounted for using the accrual model set out in FRS 102 and the Housing SORP. Grant is carried as deferred income in the statement of financial position and released to the statement of comprehensive income on a systematic basis over the useful economic life of the structure of the property.

If SHG is received in respect of revenue expenditure, it will be credited to the Statement of Comprehensive Income in the same period as the expenditure to which it relates.

SHG is subordinated to the repayment of loans by agreement with Homes England. SHG released on sale of a property may be repayable but is normally available to be recycled and is credited to a Recycled Capital Grant Fund and included in the Statement of Financial Position in creditors.

53

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

2 Accounting policies (continued)

Other tangible fixed assets and depreciation

Other fixed assets are stated at cost less depreciation. Cost includes the purchase price of the asset and any costs incurred in bringing the asset into use. Depreciation is provided to write off the cost of tangible fixed assets, less their residual values, over their expected useful lives using the straight-line basis.

Freehold land is not depreciated.

Where website and software costs can be treated as either tangible or intangible assets, they are treated as tangible fixed assets by the group.

Surpluses or deficits arising on the disposal of other fixed assets are determined as the difference between the disposal proceeds and the carrying amount of the assets and are recognised as part of the surplus/deficit for the year.

Stocks

Stocks are valued at the lower of cost and net realisable value. Cost is based on the cost of purchase on a first in, first out basis. Net realisable value is based on estimated selling price less additional costs to completion and disposal.

Shared ownership first tranche sales, completed properties for outright sale and property under construction are valued at the lower of cost and net realisable value. Cost comprises materials, direct labour, capitalised interest, and direct development overheads. Net realisable value is based on estimated sales price after allowing for all further costs of completion and disposal.

54

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

2 Accounting policies (continued)

Recoverable amount of rental and other receivables

The Group estimates the recoverable value of rent and other receivables and impairs the debtor by appropriate amounts. When assessing the amount to impair it reviews the age profile of the debt and the class of debt.

Operating leases

Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight-line basis over the term of the lease.

Schemes managed by agents

In accordance with financial reporting standards, where the risks and rewards of running the scheme accrue to the managing agent the Statement of Comprehensive Income includes only that income and expenditure which relates solely to Selwood Housing. Revenue is recognised as services are provided.

Cash and cash equivalents

Cash and cash equivalents in the Group’s Consolidated Statement of Financial Position consists of cash at bank, in hand, deposits and short-term investments with an original maturity of 95 days or less.

Short-term investments

Investments are stated at the lower of cost or market value.

Investment properties

Investment properties consist of commercial properties and other properties not held for social benefit or for use in the business. These properties are held at fair value determined annually by external valuers. Any changes in fair value are recognised in the Statement of Comprehensive Income. No depreciation is provided.

In the Company’s individual financial statements, investment properties rented to other group companies are classified as freehold office (other tangible fixed assets) and held at historical cost less depreciation and impairment.

55

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

2 Accounting policies (continued)

Loans

All loans held by the group are classified as basic financial instruments in accordance with FRS 102. These instruments are initially recorded at the transaction price (the amount of cash received including any loan premiums) less any transaction costs. FRS 102 requires that basic financial instruments are subsequently measured at amortised cost using the effective interest rate method. The group has calculated that the difference between the historical cost basis amortising costs and premiums on a straight-line basis and the application of the effective interest rate method is not material and so loan transaction costs and premiums are amortised to the income and expenditure account on a straight-line basis over the term of the loan.

Financial Instruments

Financial assets and liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all its liabilities.

Sinking funds

All sinking funds are dealt with as creditors.

Revaluation reserve

The difference on transition to FRS 102 between the deemed cost of social housing properties and the historical cost carrying value is credited to the revaluation reserve. The difference between historical cost depreciation and depreciation charged on the deemed cost is transferred from the revaluation reserve to the income and expenditure reserve each year.

56

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

2 Accounting policies (continued)

Debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded initially at transaction price less attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest rate method, less any impairment losses. Any losses arising from impairment are recognised in the statement of comprehensive income in other operating expenses. The Group estimates the recoverable value of rental and other receivables and impairs the debtor by appropriate amounts.

The Group has made arrangement with individuals and households for arrears payments of rent and service charges. These arrangements are effectively loans granted at nil interest rate.

3 Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements, key judgements have been made in respect of the following:

57

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

3 Judgements in applying accounting policies and key sources of estimation uncertainty (continued)

Other key sources of estimation uncertainty

• Tangible fixed assets (see notes 14 and 15)

Tangible fixed assets, other than investment properties 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 several factors. In re-assessing asset lives, factors such as the Group’s experience over several years of actual component lives and the Group’s ability to protect the life of a property by continuing investment are taken into account.

Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

For housing property assets, the assets are broken down into components based on management’s assessment of the properties. Individual useful economic lives are assigned to these components.

58

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

3 Judgements in applying accounting policies and key sources of estimation uncertainty (continued)

Investment properties are professionally valued annually using a yield methodology. This uses market rental values capitalised at a market capitalisation rate but there is an inevitable degree of judgement involved in that each property is unique and value can only ultimately be reliably tested in the market itself. Key inputs into the valuations for the commercial units were

The estimate for receivables relates to the recoverability of the balance outstanding at year end. A review is performed on the debt to consider whether it is recoverable.

59

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

4 Particulars of turnover, cost of sales, operating costs, and operating surplus – group

Surplus Operating
Cost of Operating on surplus
Turnover sales costs disposal /(deficit)
2024 2024 2024 2024 2024
£'000 £'000 £'000 £'000 £'000
Social housing lettings (note 5) 44,486 0 36,257 0 8,229
Other social housing activities
First tranche low cost home ownership
sales 7,576 5,067 249 0 2,260
Gain on disposal of fixed assets 0 0 0 3,401 3,401
Charges for support services 31 0 4 0 27
Development costs not capitalised 0 0 783 0 (783)
7,607 5,067 1,036 3,401 4,905
Activities other than social housing activities
Lettings 13 0 3 0 10
Other 593 0 697 0 (104)
606 0 700 0 (94)
52,699 5,067 37,993 3,401 13,040
Surplus Operating
Cost of Operating on surplus
Turnover sales costs disposal /(deficit)
2023 2023 2023 2023 2023
£'000 £'000 £'000 £'000 £'000
Social housing lettings (note 5) 40,417 0 32,736 0 7,681
Other social housing activities
First tranche low cost home ownership
sales 5,114 3,455 183 0 1,476
Gain on disposal of fixed assets 0 0 0 1,652 1,652
Charges for support services 25 0 4 0 21
Development costs not capitalised 0 0 734 0 (734)
5,139 3,455 921 1,652 2,415
Activities other than social housing activities
Lettings 10 0 4 0 6
Other 401 0 487 0 (86)
411 0 491 0 (80)
45,967 3,455 34,148 1,652 10,016

60

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

4 Particulars of turnover, cost of sales, operating costs, and operating surplus - company

Surplus Operating
Cost of Operating on surplus
Turnover sales costs disposal /(deficit)
2024 2024 2024 2024 2024
£'000 £'000 £'000 £'000 £'000
Social housing lettings (note 5) 44,486 0 36,257 0 8,229
Other social housing activities
First tranche low cost home ownership
sales 7,576 5,067 249 0 2,260
Gain on disposal of fixed assets 0 0 0 3,401 3,401
Charges for support services 31 0 4 0 27
Development costs not capitalised 0 0 783 0 (783)
7,607 5,067 1,036 3,401 4,905
Activities other than social housing activities
Lettings 13 0 3 0 10
Other 666 0 700 0 (34)
679 703 0 (24)
52,772 5,067 37,996 3,401 13,110
Surplus Operating
Cost of Operating on surplus
Turnover sales costs disposal /(deficit)
2023 2023 2023 2023 2023
£'000 £'000 £'000 £'000 £'000
Social housing lettings (note 5) 40,417 0 32,735 0 7,682
Other social housing activities
First tranche low cost home ownership
sales 5,114 3,455 182 0 1,477
Gain on disposal of fixed assets 0 0 0 1,652 1,652
Charges for support services 25 0 4 0 21
Development costs not capitalised 0 0 734 0 (734)
5,139 3,455 920 1,652 2,416
Activities other than social housing activities
Lettings 10 0 4 0 6
Other 385 0 496 0 (111)
395 500 0 (105)
45,951 3,455 34,155 1,652 9,993

61

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

5 Income and expenditure from social housing lettings – group

Income
Rents net of identifiable service charges
Service charge income
Amortised government grants
Other grants
Turnover from social housing lettings
Expenditure
Management
Service charge costs
Routine maintenance
Planned maintenance
Major repairs expenditure
Bad debts
Depreciation of housing properties:
-annual charge
-accelerated on disposal of components
Operating expenditure on social housing lettings
Operating surplus / (deficit) on social housing
lettings
Void Losses		 General
needs
Supported
& older
people's
housing
Low cost
home
ownership
Care
Homes
Garages
Total
2024
Total
2023
£'000
£'000
£'000
£'000
£'000
£'000
£'000
31,287
8,564
1,642
287
729
42,509
38,691
595
904
64
0
0
1,563
1,341
413
0
0
0
0
413
385
1
0
0
0
0
1
0
32,296
9,468
1,706
287
729
44,486
40,417
4,228
1,642
260
91
86
6,307
6,521
1,458
950
0
13
9
2,430
2,241
4,705
1,462
0
220
54
6,441
6,448
4,867
1,547
0
11
25
6,450
5,536
3,625
1,086
0
9
20
4,740
3,721
73
21
0
0
0
94
98
6,701
1,949
0
0
0
8,650
8,068
1,113
31
0
0
0
1,144
100
26,770
8,688
260
344
194
36,256
32,736
5,526
780
1,446
(57)
535
8,230
7,681
187
118
112
0
46
463
312

62

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

5 Income and expenditure from social housing lettings – company

Income
Rents net of identifiable service charges
Service charge income
Amortised government grants
Other grants
Turnover from social housing lettings
Expenditure
Management
Service charge costs
Routine maintenance
Planned maintenance
Major repairs expenditure
Bad debts
Depreciation of housing properties:
-annual charge
-accelerated on disposal of components
Operating expenditure on social housing lettings
Operating surplus / (deficit) on social housing
lettings
Void Losses		 General
needs
Supported
& older
people's
housing
Low cost
home
ownership
Care
Homes
Garages
Total
2024
Total
2023
£'000
£'000
£'000
£'000
£'000
£'000
£'000
31,287
8,564
1,642
287
729
42,509
38,691
595
904
64
0
0
1,563
1,341
413
0
0
0
0
413
385
1
0
0
0
0
1
0
32,296
9,469
1,706
287
729
44,486
40,417
4,228
1,642
260
91
86
6,307
6,521
1,458
950
0
13
9
2,430
2,241
4,705
1,463
0
220
54
6,442
6,448
4,867
1,547
0
11
25
6,450
5,536
3,625
1,086
0
9
20
4,740
3,721
73
21
0
0
0
94
98
0
0
0
0
0
0
0
6,701
1,949
0
0
0
8,650
8,068
1,113
31
0
0
0
1,144
100
26,770
8,689
260
344
194
36,257
32,733
5,526
780
1,446
(57)
535
8,229
7,684
187
118
112
0
46
463
312

63

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

6 Units of housing stock

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

General needs housing:
- social
- affordable
Low cost home ownership
Supported housing
Housing for older people
Sheltered units for older people / supported
living
Total social housing units
Residential care home bed spaces
Total owned and managed
Leaseholders of sold flats
Leaseholders units for supported living
Market rent
Total owned and managed accommodation
Units under construction
Total owned and managed accommodation as at Apr 23
Newly built rental accommodation, built by or for Selwood
Housing.
Sales to the open market
Right to Buy Disposals
Right to Acquire Disposals
Rental property transferred to Leasehold
Fully Staircased LCHO
Total owned and managed accommodation as at Mar 24		 Group &
Company
Group &
Company
2024
2023
Number
Number
4,187
4,192
944
861
433
367
76
76
701
701
713
714
7,054
6,911
46
46
7,100
6,957
91
90
4
4
2
2
7,197
7,053
273
250
Group &
Company
Number
7,053
171
(24)
(1)
(1)
1
(2)
7,197

64

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

6 Units of housing stock (continued)

Selwood Housing owns 76 supported housing units (2023: 76) and tenancy sustainment support was provided for 11 of these units by Selwood Housing in 2024. The rest are managed by bodies that contract with adult social care and carry the financial risk relating to these supported housing units. Other organisations manage 46 care home units on our behalf.

Selwood Housing also owns 1,157 garages, 1 shop unit used by Selwood Housing as a resource centre and 1 doctors’ surgery.

7 Operating surplus

Group Group Company Company
2024 2023 2024 2023
£'000 £'000 £'000 £'000
This is arrived at after charging / (crediting):
Depreciation of housing properties:
-annual charge 8,649 8,063 8,649 8,063
-accelerated depreciation on replaced components 139 100 139 100
Depreciation of other tangible fixed assets 273 433 247 404
Impairment of 2 blocks of flats 1,006 0 1,006 0
Impairment of Office property 0 433 0 433
Auditor's remuneration (excluding VAT):
-fees payable to the group's auditor for the audit
of the group's annual accounts 32 27 23 19
- fees for other non-audit services 2 0 2 0

8 Employees

Staff costs (including Executive Team) consist of:
Wages and salaries
Social security costs
Cost of defined benefit scheme (see note 26)
Cost of defined contribution scheme		 Group
Group
Company
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
11,067
10,615
11,067
10,615
1,045
1,029
1,045
1,029
217
458
217
458
775
741
775
741
13,104
12,843
13,104
12,843

65

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

8 Employees continued

The average number of employees (including the executive team) expressed as full-time equivalents (calculated based on a standard working week of 35 hours during the year) was as follows:

Group Group Company Company
2024 2023 2024 2023
Administration 62 61 62 61
Development 9 10 9 10
Maintenance 91 92 91 92
Housing, Support and care 149 149 149 149
311 312 311 312

9 Directors’ and senior executive remuneration

The directors and senior executives are defined as the members of the Board of directors, the group chief executive and the executive team disclosed on page 1.

Group and company

Executive directors' emoluments
Amounts paid to non-executive directors
Contributions to money purchase pension schemes
Contributions to defined benefits pension scheme		 2024
2023
£'000
£'000
636
718
49
51
11
10
80
75
776
854

66

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

9 Directors’ and senior executive remuneration (continued)

The remuneration paid to staff (including the executive team) earning over £60,000 upwards (excluding employer pension contributions):

2024
2023
No.
No.
£60,000 - £69,999 9
5
£70,000 - £79,999 10
7
£80,000 - £89,999 0
0
£90,000 - £99,999 1
2
£100,000 - £109,999 1
1
£110,000 - £119,999 1
1
120,000 - 129,999 1
0
130,000 - 139,999 0
0
140,000 - 149,999 0
0
150,000 - 159,999 0
0
160,000 - 169,999 0
0
170,000 - 179,999 0
0
180,000 - 189,999 0
0
190,000 - 199,999 0
1
200,000 - 210,000 1
0
24
17

Benefits have accrued to 3 executive officers under the Wiltshire pension fund defined benefit scheme (2023 – 3) and 1 director accrued benefits under the group’s defined contribution pension scheme during the year (2023 – 1).

The group chief executive received remuneration of £149,216 salary excluding pension contributions plus £53,370 in lieu of pension contributions. This is 6.14 times the median salary of all members of staff (2023: 6.06 times).

67

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

10 Board members

The Chair of the Board receives a salary of £10,500 (2023: £10,500) per annum, the committee chairs each receive £1,750 per annum (2023: £1,750), in addition to their basic Board member payment. The standard other group Board member payment is £4,250 (2023: £4,250). Emoluments paid to Board members in 2024 were 0.09% (2023: 0.1%) of Selwood Housing’s annual turnover.

Board member Remuneration
& Expenses
£		 Current
Member of
Group Asset
&
Development
Committee		 Current
Member
of Group
Audit and
Finance
committee		 Group
Board
Sheila Lewis* 11,014 x x
Nicci Setchell from 04/10/23 2,093 x x
Chris Butters 6,000 x x
Stella Shepherd** 4,250 x x
Lisa Nicholls from 04/10/23 2,188 x x
Richard Yates 4,250 x x
David Knight to 04/10/23 2,173 x x
Valerie Lee to 04/10/23 3,181 x x
Hannah Jones 4,250 x x
Koo Chai YoungLi Mow Ching 5,531 x x
PhilipWhitehead 4,250 x x
Total 49,180
* Chair
** Vice Chair

68

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

11 Surplus on disposal of fixed assets

Group and Company
Disposal proceeds
Costs of disposals
Selling costs
Grant recycled
Surplus on disposal of other
tangible fixed assets		 Right to Buy
and Right to
Acquire
Other
housing
properties
Staircasing
Total
Total
2024
2024
2024
2024
2023
£'000
£'000
£'000
£'000
£'000
235
4,532
276
5,043
3,043
(85)
(1,410)
(142)
(1,637)
(1,357)
2
(4)
(3)
(5)
(24)
0
0
0
0
0
152
3,118
131
3,401
1,662
0
0
0
0
(10)
152
3,118
131
3,401
1,652

12 Interest payable and similar charges

Group and company
Bank loans and overdrafts
All other loans (excluding loans from group
entities)
Interest capitalised on construction of housing
properties		 2024
2023
£'000
£'000
4,726
2,618
2,178
1,861
(897)
(644)
6,007
3,835

13 Taxation on profit from ordinary activities

Current tax
UK corporation tax on profits of the year
Effect of changes in rates
Adjustments in respect of previous periods
Origination and reversal of timing differences
Taxation on profit on ordinary activities		 Group
Group
Company Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
0
0
0
0
(1)
0
0
0
2
0
0
0
2
2
0
0
3
2
0
0

69

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

13 Taxation on profit from ordinary activities (continued)

The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The differences are explained below.

Profit on ordinary activities before tax
Tax on profit on ordinary activities at the
standard rate of corporation tax in the UK of
25% (2022: 19%)
Effects of:
Charitable income
Gift Aid Payment to parent
Expenses not deductible
Tax rate changes
Current tax charge for year		 2024
2023
2024
2023
£'000
£'000
£'000
£'000
7,166
6,110
7,217
6,082
(1,792)
(1,161)
(1,804)
(1,156)
1,770
1,137
1,804
1,156
24
26
0
0
0
0
0
0
0
0
0
0
3
2
0
0

70

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

14 Tangible fixed assets – housing properties

All housing properties were freehold at 31 March 2024 (2023: all freehold).

Group
Cost
1st April 2023
Construction Costs
Replaced components - Additions
Completed Schemes
Disposals - RTB, RTA & market
sales
Disposals - replaced components
Impairment of 2 blocks of flats
Disposals - staircasing
Transfers
At 31 March 2024
Depreciation
1st April 2023
Charge for the year
Eliminated on disposals
Replaced components - Disposals
Impairment of 2 blocks of flats
Disposals - staircasing
At 31 March 2024
Net Book Value at 31 March 2024
Net Book Value at 31 March 2023		 General
needs
completed
General
needs under
construction
Shared
ownership
completed
Shared
ownership
under
construction
Total
£'000
£'000
£'000
£'000
£'000
480,834
14,434
33,318
3,931
532,517
0
17,640
0
6,876
24,516
11,104
(1,513)
0
0
9,591
23,822
(23,822)
8,802
(8,802)
0
(1,694)
0
0
0
(1,694)
(1,559)
0
0
0
(1,559)
(1,349)
0
0
0
(1,349)
0
0
(147)
0
(147)
0
0
38
0
38
511,158
6,739
42,011
2,005
561,913
(59,778)
0
(884)
0
(60,662)
(8,353)
0
(296)
0
(8,649)
233
0
0
0
233
1,420
0
0
0
1,420
343
0
0
0
343
0
0
5
0
5
(66,135)
0
(1,175)
0
(67,310)
445,023
6,739
40,836
2,005
494,602
421,056
14,434
32,434
3,931
471,855

71

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

14 Tangible fixed assets – housing properties (continued)

Company
Cost
1st April 2023
Construction Costs
Replaced components - Additions
Completed Schemes
Disposals - RTB, RTA & market sales
Disposals - replaced components
Impairment of 2 blocks of flats
Disposals - staircasing
Transfers
At 31 March 2024
Depreciation
1st April 2023
Charge for the year
Eliminated on disposals
Replaced components - Disposals
Impairment of 2 blocks of flats
Disposals - staircasing
At 31 March 2024
Net Book Value at 31 March 2024
Net Book Value at 31 March 2023		 General
needs
completed
General
needs under
construction
Shared
ownership
completed
Shared
ownership
under
construction
Total
£'000
£'000
£'000
£'000
£'000
480,834
14,469
33,318
3,949
532,570
0
17,691
0
6,876
24,567
11,104
(1,565)
0
0
9,539
23,822
(23,822)
8,802
(8,802)
0
(1,694)
0
0
0
(1,694)
(1,559)
0
0
0
(1,559)
(1,349)
0
0
0
(1,349)
0
0
(147)
0
(147)
0
0
38
0
38
511,158
6,773
42,011
2,023
561,965
(59,778)
0
(885)
0
(60,663)
(8,353)
0
(296)
0
(8,649)
233
0
0
0
233
1,420
0
0
0
1,420
343
0
0
0
343
0
0
5
0
5
(66,135)
0
(1,176)
0
(67,311)
445,023
6,773
40,835
2,023
494,654
421,056
14,469
32,433
3,949
471,907

72

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

14 Tangible fixed assets – housing properties (continued)

Interest capitalised in the year
Rate used for capitalisation
Total social housing grant received or receivable
to date
as follows
Capital grant - Housing properties
Recycled Capital Grant Fund
Revenue grant - I&E
Revenue grant - reserves		 Group
Group
Company
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
(897)
(644)
(897)
(644)
3%
3%
3%
3%
Group
Group
Company
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
34,257
34,518
34,257
34,518
129
205
129
205
413
385
413
385
5,055
4,642
5,055
4,642
39,854
39,750
39,854
39,750

Properties held for security

Selwood Housing Society Ltd had property with an existing use value of £270 million pledged as security at 31 March 2024 (£239 million – 2023).

73

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

15 Other tangible fixed assets – group

Group
Cost
At 1 April 2023
Additions
Disposals
At 31 March 2024
Accumulated Depreciation
At 1 April 2023
Charged in year
Disposals
At 31 March 2024
Net book value at 31
March
2024
Net book value at 31
March
2023		 Freehold
Fixtures
Plant &
Motor
IT
Laptops
Total
Office
& Fittings
&
Equipment
Vehicles
&
Tablets
£'000
£'000
£'000
£'000
£'000
£'000
£'000
3,556
52
554
13
2,809
0
6,984
0
0
0
0
227
130
357
0
0
(4)
0
0
0
(4)
3,556
52
550
13
3,036
130
7,337
(1,303)
(22)
(226)
(13)
(1,845)
0
(3,409)
(60)
(5)
(26)
0
(169)
(13)
(273)
0
0
0
0
0
0
0
(1,363)
(27)
(252)
(13)
(2,014)
(13)
(3,682)
2,193
25
298
0
1,022
117
3,655
2,253
30
328
0
964
0
3,575

Freehold office includes freehold land at cost of £360,000 (2023: £360,000) which is not depreciated.

74

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

15 Other tangible fixed assets – company

COMPANY
Cost
At 1 April 2023
Additions
Disposals
At 31 March 2024
Accumulated Depreciation
At 1 April 2023
Charged in year
Disposals
At 31 March 2024
Net book value at 31 March
2024
Net book value at 31 March
2023		 Freehold
Fixtures
Plant
Motor
IT
Laptops
Total
Office
& Fittings
&
Equipment
Vehicles
&
Tablets
£'000
£'000
£'000
£'000
£'000
£'000
£'000
3,556
52
6
13
2,809
0
6,436
0
0
0
0
227
130
357
0
0
0
0
0
0
0
3,556
52
6
13
3,036
130
6,793
(1,303)
(22)
(6)
(13)
(1,845)
0
(3,189)
(60)
(5)
0
0
(169)
(13)
(247)
0
0
0
0
0
0
0
(1,363)
(27)
(6)
(13)
(2,014)
(13)
(3,436)
2,193
25
0
0
1,022
117
3,357
2,253
30
0
0
964
0
3,247

Freehold office includes freehold land at cost of £360,000 (2023: £360,000) which is not depreciated.

16 Investment properties

Group and Company
At 1 April 2023
Revaluations
At 31 March 2024		 Market
rent
Commercial
Total
£'000
£'000
£'000
225
127
352
(9)
(3)
(12)
216
124
340

75

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

16 Investment properties continued

The group’s investment properties are valued annually on 31 March at fair value, determined by an independent, professionally qualified valuer. The valuations were undertaken in accordance with the Royal Institution of Chartered Surveyors’ Appraisal and Valuation Manual. Details on the assumptions made and the key sources of estimation uncertainty are given in note 3.

The deficit on revaluation of investment property arising £12k (2023 – surplus of £1k) has been credited to the statement of comprehensive income for the year (company and group).

17 Fixed asset investments

Cost or valuation
At 1 April 2023
Additions
At 31 March 2024		 Group
Company
£'000
£'000
125
2,225
0
1,000
125
3,225

76

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

18 Subsidiary undertakings

The principal undertakings in which the company has an interest are as follows:

Proportion of
Country of voting rights
Name incorporation / ordinary share Nature of business Nature of entity Number of shares
or
registration capital held
Private company 100,000 ordinary £1
Silcoa Ltd * England 100% Dormant limited by shares shares
Cottsbury Homes Sale of properties at Private company 500,000 ordinary £1
Ltd England 100% market cost limited by shares shares
Selwood DevCo Generation and supply Private company 2,500,000 ordinary
Ltd England 100% of electricity limited by shares £1 shares

All subsidiary undertakings have the same registered office as the company, shown on page 1.

77

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

19 Properties for sale & other stock

Group
Completed properties
Other
Properties under construction
Company
Completed properties
Other
Properties under construction		 First tranche
shared
ownership
Other
properties
Stock
Total
Total
2024
2024
2024
2023
£'000
£'000
£'000
£'000
2,921
0
2,921
2,120
0
163
163
88
1,348
1,671
3,019
2,632
4,269
1,834
6,103
4,840
First tranche
shared
ownership
Other
properties
Stock
Total
Total
2024
2024
2024
2023
£'000
£'000
£'000
£'000
2,921
0
2,921
2,120
0
163
163
88
1,348
0
1,348
2,632
4,269
163
4,432
4,840

Properties developed for sale include capitalised interest of £71k (2023 - £26k).

78

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

20 Debtors

Due within one year
Arrears of rent and service charges
Less: Provision for doubtful debts
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Group
Group
Company
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
638
492
638
492
(366)
(280)
(366)
(280)
272
212
272
212
0
0
0
0
2,683
2,077
2,381
2,067
1,641
887
1,635
881
4,596
3,176
4,288
3,160

The other debtors figure includes £541k (2023: £486k) in respect of 21 days’ (2023:19 days) housing benefit due from Wiltshire Council.

20a Cash and cash equivalents

Cash
Deposit accounts		 Group
Group
Company
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
5,274
7,425
4,938
6,075
1,327
1,295
656
613
6,601
8,720
5,594
6,688

79

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

21 Creditors: Amounts falling due within one year

Trade creditors
Rent and service charges received in advance
Amounts owed to group undertakings
Taxation and social security
Other creditors
Accruals and deferred income
Loans due within 1 year
Recycled Capital Grant
Deferred Capital grant		 Group
Group
Company Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
1,147
2,743
1,147
2,742
702
858
702
858
0
0
9
9
288
3
288
0
651
594
652
560
6,825
6,564
6,819
6,556
7,702
6,849
7,702
6,849
9
28
9
28
406
385
406
385
17,730
18,023
17,734
17,987

22 Creditors: Amounts falling due after more than one year

Group and company

Group and company
Loans and borrowings (note 25)
Deferred capital grant (note 23)
Recycled capital grant (note 24)
Sinking fund balances		 2024
2023
£'000
£'000
176,944
160,100
34,257
34,134
120
177
110
148
211,431
194,559

80

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

23 Deferred capital grant

Group and company
At 1 April
Grants received in the year
Grants accrued
Grants recycled from the recycled capital grant fund
Released to income in the year
To be released to income < 1 year (note 21)
At 31 March		 2024
2023
£'000
£'000
34,518
33,508
482
1,446
0
0
76
(51)
(413)
(385)
(406)
0
34,257
34,518

24 Recycled capital grant

At 1 April
Additions:
Grants Recycled
Interest
Withdrawls:
New build
At 31 March
Amounts 3 years or older where repayment may
be required		 Group
Group
Company Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
205
150
205
150
97
55
97
55
3
0
3
0
(176)
0
(176)
0
129
205
129
205
0
0
0
0

81

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

25 Loans and borrowings

Loans are secured by specific charges on the housing properties of the group and are secured on the assets of Selwood Housing, including fixed charges on individual properties.

In one year or less, or on demand
In more than one year but not more than two years
In more than two years but not more than five years
In more than five years
Total debt		 Bank
Loans
Total
Total
2024
2024
2023
£'000
£'000
£'000
7,702
7,702
6,849
8,791
8,791
7,702
66,336
66,336
36,888
101,817
101,817
115,510
184,646
184,646
166,949

New funding of £25m was secured in 23/24 with Lloyds. This is an extension to the current facility already in place with Lloyds.

The loans bear interest at fixed rates ranging from 1.8% to 5.08% or at variable rates calculated at a margin above the London Inter Bank Offer Rate. The current loan outstanding is made up of £120m fixed and £64.6m variable, against agreed facilities of £226.7m. At 31 March 2024 the group had undrawn loan facilities of £20m (2023 - £20m) with Nationwide and £22.5m (2023 £22m) with Lloyds.

26 Pension obligations

Group and Company

The Wiltshire Pension Fund (“WPF”) is a multi-employer scheme with more than one participating employer, which is administered by Wiltshire Council under the regulations governing the Local Government Pension Scheme (LGPS), a defined benefit scheme. The assets of the WPF are held separately from those of Selwood Housing in independently administered funds. The actuaries have used the projected unit credit method of valuation in accordance with FRS 17.

The employers’ contributions to the WPF by Selwood Housing for the year ended 31 March 2024 were £575,165 (2023: £585,547) at a contribution rate of 25.7% of pensionable salaries including an annual contribution of £343,000 to fund the deficit, set until the next funding valuation.

82

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

26 Pensions obligations (continued)

Financial assumptions

The main financial assumptions used by the actuary were:

31 March 2024 31 March 2023
% per annum % per annum
Discount rate 4.85 4.75
Future salary increases 3.25 3.45
Future pension increases 2.75 2.95

Mortality assumptions

Life expectancy is based on the Fund’s VitaCurves with improvements in line with the CMI 2022 model, with a 25% weighting of 2022 data, a 0% weighting of 2021 (and 2020) data, standard smoothing (Sk7), initial adjustment of 0.25% and a long-term rate of improvement of 1.5% per annum for both males and females. Based on these assumptions, the average future life expectancies at age 65 are summarised below:

2024 2023
No. of years No. of years
Current pensioners:
Males 21.3 21.5
Females 24.3 24.5
Future pensioners: *
Males 23.8 24
Females 25.8 26.1

Commutation

A commutation allowance is included for future retirements to elect to take 50% of the maximum additional tax-free cash up to HMRC limits.

83

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

26 Pensions obligations (continued)

Amounts recognised in the statement of financial position

2024 2023
£'000 £'000
Present value of funded obligations relating (23,313) (23,324)
to Selwood Housing
Fair value of plan assets relating to 28,431 26,289
Selwood Housing
Unrecognised Asset (5,118) (2,965)
Net Deficit 0 0

Analysis of the amount (credited)/charged to the statement of comprehensive income:

Current service cost
Expected return on pension scheme assets
Interest on pension scheme liabilities
Total operating charge		 2024
2023
£'000
£'000
217
458
(1,247)
(757)
1,097
883
67
584

Of the above amount, £150,000 (2023: £126,000) was credited to other finance charges. £359,000 (2023: £131,000) was credited to operating surplus.

Changes in fair value of employer assets

Opening fair value of employer assets
Contributions by the Employer
Actuarial gains
Benefits paid
Contributions by members
Interest
Closing fair value of employer assets		 2024
2023
£'000
£'000
26,289
28,122
576
589
985
(2,478)
(740)
(778)
74
77
1,247
757
28,431
26,289

84

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

26 Pensions obligations (continued)

Changes in present value of defined benefit obligation

Opening defined benefit obligation
Current service cost
Interest cost
Actuarial losses /(gains)
Estimated benefits paid
Contributions by members
Closing defined benefit obligation		 2024
2023
£'000
£'000
23,324
32,863
217
458
1,097
883
(659)
(10,179)
(740)
(778)
74
77
23,313
23,324

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

2024 2023
Equities 56% 55%
Bonds 29% 31%
Property 14% 13%
Cash 1% 1%

Fair value of employer assets

Equities
Bonds
Property
Cash		 2024
2023
£'000
£'000
15,921
14,458
8,245
8,150
3,980
3,418
284
263
28,430
26,289

85

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

26 Pensions obligations (continued)

Amounts for the current and previous four years are as follows:

2024 2023 2022 2021 2020
£'000 £'000 £'000 £'000 £'000
Present value of defined benefit obligation (23,313) (23,324) (32,863) (34,807) (26,518)
Fair value of scheme assets 28,431 26,289 28,122 26,017 22,039
Surplus/(Deficit) on scheme 5,118 2,965 (4,741) (8,790) (4,479)
Experience adjustments on plan liabilities (776) (1,743) (68) 298 1,027
Experience adjustments on plan assets 985 (2,457) 1,606 3,269 (1,681)
Cumulative actuarial gains/losses 6,736 5,092 (2,609) (6,788) (2,379)

Projected pension expense for the year to 31 March 2025

Projected Current Service Cost
Interest on Obligation
Expected Return on Plan Assets
Total		 £'000
196
1119
(1,377)
(62)

The estimated employer contributions for the year to 31 March 2025 are approximately £576,000.

Defined Contribution Scheme

A defined contribution pension scheme is operated by the group on behalf of some employees. The assets of the scheme are held separately from those of the group and the company in an independently administered fund. All existing and new colleagues are eligible to join. The costs associated with providing this scheme are outlined in note 8.

86

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

27 Operating leases

At 31 March 2024, the group and company had future minimum lease payments under non-cancellable operating leases as set out below:

Amounts payable as Lessee Group Group Company Company
2024 2023 2024 2023
£'000 £'000 £'000 £'000
Not later than 1 year 545 493 545 493
later than 1 year and no later than 5 years 952 1013 952 1013
Later than 5 years 0 0 0 0
Total 1,497 1,506 1497 1506
Amounts receivable as Lessor Group Group Company Company
2024 2023 2024 2023
£'000 £'000 £'000 £'000
Not later than 1 year 1 1 1 1
later than 1 year and no later than 5 years 0 0 0 0
Later than 5 years 0 0 0 0
Total 1 1 1 1

28 Capital commitments

Commitments contracted but not provided
for in the accounts
Commitments approved by the Board but
not contracted for		 Group
Group
Company
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000

81,671
60,907
81,671
60,907
95,886
92,218
95,886
92,218
177,557
153,125
177,557
153,125

87

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

28 Capital commitments (continued)

The above commitments will be financed primarily through borrowings, new funding, social housing grant, property sales and internal cash balances.

29 Related party transactions

The directors Stella Shepherd, Richard Yates and Hannah Jones are tenants of Selwood Housing. Their tenancy agreements are under normal commercial terms and they are not able to use their position to their advantage.

The director Philip Whitehead is also a councillor of Wiltshire Council. Any transactions made with Wiltshire Council are made at arm’s length, on normal commercial terms and the councillors cannot use their position on the Board to their advantage.

Except for the disclosures below, Selwood Housing Group has taken advantage of the exemption allowed under FRS 102 not to disclose related party transactions within the group. All intra-group transactions are with subsidiaries that are wholly owned. These have been eliminated on consolidation in the group’s financial statements.

Transactions with non-regulated entities

The association provides management services and other services to some of its subsidiaries. Selwood Housing also receives charges from its subsidiaries. The quantum and basis of those charges is set out below.

Transactions with non-regulated entities
Payable to Selwood Housing by
Subsidiaries:
Silcoa Ltd
Selwood DevCo Ltd
Cottsbury Homes Ltd
Payable by Selwood Housing to
Subsidiaries:
Silcoa Ltd
Selwood DevCo Ltd		 Management
Charges
Gift Aid
2024
2023
2024
2023
£'000
£'000
£'000
£'000
0
0
1
0
0
0
134
46
0
0
1
0
0
0
136
46
Other Charges
2024
2023
£'000
£'000
0
0
59
1,050
59
1,050

88

Selwood Housing Society Limited

Notes to the financial statements For the year ended 31 March 2024

Other intra-group charges

No other intra-group charges are payable to the society from subsidiaries. Charges from subsidiaries to the society are for goods and services provided, such as repairs and maintenance.

30 Provision for liabilities – Deferred Tax

At 31 March 2023
Charge / (Credit)
Origination and reversal of timing
differences
At 31 March 2024
1 Net debt reconciliation
01 April 2023
£'000
Group
Cash and cash
equivalents
8,720
Loans and borrowings
(166,949)
(158,229)
Company
Cash and cash
equivalents
6,688
Loans and borrowings
(166,949)
(160,261)		 At 31 March 2023
Charge / (Credit)
Origination and reversal of timing
differences
At 31 March 2024
1 Net debt reconciliation
01 April 2023
£'000
Group
Cash and cash
equivalents
8,720
Loans and borrowings
(166,949)
(158,229)
Company
Cash and cash
equivalents
6,688
Loans and borrowings
(166,949)
(160,261)		 Group
Group
Company
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
7
9
0
0
(3)
(2)
0
0
0
0
0
0
4
7
0
0

Cash flows
Non -cash
changes
31 March
2024
£'000
£'000
£'000

(2,119)
0
6,601
(17,651)
(46)
(184,647)
(158,229) (19,770)
(46)
(178,046)
6,688
(166,949)
(1,094)
0
5,594
(17,651)
(46)
(184,646)
(160,261) (18,745)
(46)
(179,052)

31 Net debt reconciliation

89