The Papworth Trust
Report and Accounts
31 March 2021
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|**CONTENTS **|**PAGE **|
|---|---|
|Chair'sreview||
|Trustees'report|`2-22 `|
|Strategicreport|`23-32 `|
|StatementofTrustees'responsibilities|`33`|
|IndependentAuditor'sReport|`34- 38 `|
|Statementofcomprehensiveincome andchangesinreserves|`39 `|
|Balancesheet|`40 `|
|Cashflowstatement|4l|
|Notestothe accounts|`42-78 `|
|Honorarypersonnel,Trusteesandseniormanagers|`79`|
|PrincipaladvisersandPapworthTrustinformation|`80`|
||**_Registration _**|
|---|---|
||**_Number _**|
|**TRUST STATUS: **||
|Aregisteredcharity|`211234 `|
|Acompanylimitedbyguarantee|`148906 `|
|Aprivateregisteredprovider|`LH1648 `|
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|**Category**|**Description of Risk **|**Estimated **||
|---|---|---|---|
|||**Financial Exposure **||
||SocialHousingPensionLiability.Historically|£0.75mto£1.5m||
||therehasbeensignificantvolatilityanda|||
||minimumcashliabilityhasbeenidentified.|||
|**l.Potential **|Thereisalsothelikelihoodof futureactuarial|||
|**Future **|assumptionchanges|||
|**Obligations **|CapitalInvestments-ownfundsrequiredto|None atpresent|
-|
||bereservedtocomplete projects|fundingplansin||
|||placetomeet||
|||requirements||
||Careservicedelivery.Challenging operating|£150k||
|**2. Operational **
**challenges **|model,risktoachievingfinancial
improvementplan
Stress-testingandsensitivityofbudget|£250kto£600k||
||projections|||
|**Category **|**Description of Risk **|**Estimated **|
|---|---|---|
|||**Financial Exposure **|
||Reductioninvoluntaryfunding.Reserve|£450kto£650k|
||neededtomanage anytransitiontoreduced||
||funding environment||
|**3. Transitional **
**arrangements **|Fundsrequiredtomanagetransitions
betweencontracts-noneanticipatedat
present||
|**4. Funding**|Identificationofreservestofundfuture||
|**planned **|shortfalls-nonerequiredthatarenot||
|**service **|alreadyincludedinthebudget||
|**shortfalls **|||
||Impairmentriskoffixedassets.Realisable|£550k|
||valuemaybelessthanin-use valuefor||
|**5. Asset **
**valuation risk **|specialistassets
Repaymentofsocialhousinggrants,should
thesenotberecycledeffectively|£400k|
||DowngradeinvaluationofInvestment|£lmto£2m|
||portfolio||
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|**Value for Money Metrics **|**2020/21 **|**2019/20**|**SPBM **|
|---|---|---|---|
||||**median **|
|Reinvestment|1.6%|l.l%|2.1%|
|Newsupplydelivered|0.2%|0.5%|0.0%|
|Gearing|19.8%|22.6%|10.8%|
|Interestcover|373%|271%|310%|
|SocialHousingcostperunit|£.6,013|£5,700|£4,372|
|---|---|---|---|
|Operatingmargin(socialhousing)|12.6%|13.1%|15.9%|
|Returnoncapitalemployed|1.5%|1.4%|2.5%|
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||**2020/21 **|**2019/20 **|**SPBM **|
|---|---|---|---|
|Supportedhousing|£6,860|£6,435|£11,925|
|Generalneedshousing|£3,618|£3,613|£3,878|
|Allhousing|£.6,013|£5.700|£4,372|
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||**2020/21 **|**2019/20 **|**SPBM **|
|---|---|---|---|
|Supportedhousing|7.9%|8.9%|9.3%|
|Generalneedshousing|31.4%|29.6%|16.6%|
|Allhousing|12.6%|13.1%|15.9%|
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||**2021 **|2020|
|---|---|---|
||**£000's **|£000's|
|Turnover|13,383|12,647|
|Operatingcosts|(11,320)|(11,368)|
|Operatingsurplus|2,063|1,279|
|Profit/(Loss)onsaleoffixed assets|l|884|
|Exceptionalincome|67|263|
|Interestpayable|(491)|(613)|
|Investmentgains/(losses)|1,826|(358)|
|**Surplus for the year **|3,466|1,455|
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|**Key risk **|**Responses to the risk **|**Responses to the risk **|
|---|---|---|
|**Government austerity measures **|•|Activetrackingandmonitoringofnational|
|**and public sector finances **||policyandlocalmarkets|
|Governmentausteritymeasures|•|Closeengagementandpartneringwith|
|andlocalauthorityspending||commissionersofservices|
|reviewshaveagreaterimpacton|•|Carefulscenario andsensitivityplanning|
|thefinancialsustainabilityofsome
servicesthanplanned|•|Effectiverenegotiationofcontracts|
|**Cost base increases unable to be **|•|'Openbook'negotiationswith|
|**supported **||commissioners|
|Therateofcostincreasesdueto|•|Serviceefficiencies,includingtechnology|
|nationallivingwageandother||deployment,usedtomaximiseresource|
|employmentrelatedcosts||utilisation|
|becomesunsustainableforthe|•|Recruitmentandretentionofstaffprioritised|
|Trust||tominimiseattrition|
|**Impactof Covid-19 pandemic **|•|Actively engagewithcommissioningbodies|
|Thelong-termimpactofthecovid-||toensurealignmentofserviceprovision,with|
|19 pandemic,inparticularin||fundingtosupport|
|relationtothewayweareableto|•|Developourcommunity-basedservice|
|deliverourservices,couldhavean||deliverymodelwithinOWL(DayServices)|
|impactonthefinancial|•|Continuetostrengthenourremoteworking|
|sustainabilityofouroperations||andtechnologysupportedwaysofworking|
|||acrosstheTrust|
|**Ability to effectively structure the **|•|Deliverappropriatestrategicassetdisposals|
|**long-term financing plan **||tosupporttheplan|
|Abilitytogeneratesufficientcash|•|Increasedvisibilityoflong-termcapital|
|flowstomeetcapitalandre-||maintenancefundingrequiredfollowing|
|financing obligationswillbemore||completionofstockconditionsurveysforour|
|challengingwithreductionin||housingandcommercialbuildings|
|volumes,andingeneratingvalue|•|Secureand drawnewlendingfacility|
|fromassetsales|•|Completescenario analysisandsecure|
|||contingencyfinancingarrangements|
|**Key risk **|**Responses to the risk **|**Responses to the risk **|
|---|---|---|
|**Breach of regulations **|•|Deployedarisk-basedQualityAssurance|
|TheTrustworkswithvulnerable||Framework,withfocuson highlyregulated|
|peopleinanumberofhighly||areas suchasCareprioritised|
|regulated environments.Abreach|•|Thestrengthening ofaself-assessmentmodel|
|ofregulationscouldleadto||tocreategreaterlocalaccountability,as|
|significantreputationaldamage.||wellasindependentscrutiny|
|Thoughthelikelihoodislow,the|•|Effectivereporting,safeguardingand|
|impactcouldbeveryhigh||whistle-blowingpoliciesandproceduresin|
|||place,aspartofastructuredpolicyregister,|
|||withscheduledreviewpoints|
|**Future service provision not **|•|Closemonitoring and active dialoguewith|
|**adapted sufficiently **||commissioners|
|Inachangingfundingand|•|Testingof futuremodelsofservicedeliveryto|
|commissioninglandscape,||meetchangingcustomerneeds,withinthe|
|operatingmodelsneedtoadapt||anticipatedfundingframework|
|sothatservicedeliveryremains|•|Increaseagilityofprovisionbypursuingour|
|effectiveforthepriceandservice||DigitalRoadmap and developingamore|
|designthatcommissionerswill||effectiveassetstrategy,togetherwith|
|support||recruitmentofsuitablyskilledstaff todiversify|
|||ouroffering|
|**Defined Benefitpension liability **|•|Activeuseofaccountingtooltotrack|
|**increases significantly **||liability|
|Actuarialassumptionsmade,and|•|Provisionofreservestoseekto mitigate|
|assetvaluationvolatility,givesrise||impactofanychangesinvaluation|
|toconsiderableuncertaintyof||experienced|
|futurevaluationsand deficit|•|Completionofcashflowstress-testing|
|contributions||analysisandliquiditycontingencyplanning|
|**Value of investment portfolio **|•|Fundsplacedinasuitablydiversified|
|**significantly decreases **||portfolio,managedbyqualifiedinvestment|
|Listedinvestmentvolatility,||managers|
|particularlyinresponsetoworld|•|ScrutinybytheInvestmentCommittee,|
|economiceventsandglobal||includingactiveconsiderationof the|
|issues,suchastheCovid-19||mandateforgeographicbase,sterling|
|pandemic,mayhaveanadverse||weighting,investmenttype and|
|impactonthe generalreserves||Environmental,SocialandGovernance|
|heldbytheTrust||considerations|
|**Key risk **|**Responses to the risk **|**Responses to the risk **|
|---|---|---|
|**Varrier-Jones Foundation donation **|•|Regularreviewofreservesandcashflow|
|**not maintained. **||scenarioanalysesandmitigating actions|
|Lossofrentalincomeforthe|•|Seektosecurealonger-termagreementon|
|Varrier-JonesFoundation(VJF),||thelevelofrecurrentfinancinginorderto|
|followingthemoveofPapworth||providestability,adjustingcommitments|
|Hospitalandattritionfollowing||accordingly|
|Covid-19,coupledwithanadverse|•|Seektobuildalternativesourcesof|
|impactonVJF'sinvestment
returns,||unrestrictedfundingtomaintainflexibility|
|reducesannual incomeexpected
andthereforefundsavailablefor
distribution|•|Exploitnew waysofworkingto explorecost
savingsthatcouldbeachievedthrough
rationalisationofpremises|
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The Papworth Trust
Report ond Accounls for the year ended 31 March 2021
Use of our report
This reporl is made solely lo the company's members. as a body, in occordance
with Chapter 3 of Porl 16 of the Companies Act 2006. Our audit work has been
undertoken so Ihat we might state lo fhe compony's members Ihose malters we
are required lo slate lo Ihem in on auditor's report and for no other purpose. To
the fullest extent permitted by law. we do not accept or assume responsibility lo
anyone olher than fhe company and the company's members as a body, for our
audit work, for this report. or for Ihe opinions we have formed.
LJIL LLf
Laiagh Jeanroy (Senior Statutory Auditor)
For ond on behalf of RSM UK Audil LLP. Statutory Audilor
Chartered Accountants
Blenheim House
Newmarket Road
Bury St Edmunds
Suff olk
IP33 3SB
f Se-pfr 2oLI
38
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|||202|2020|
|---|---|---|---|
||Note|£000's|£000's|
|Turnover|3|13,383|12,647|
|Operatingcosts|3|(11,320)|(11,368)|
|**Operating surplus **||2,063|1,279|
|Profit ondisposaloftangiblefixedassets|8||884|
|Exceptionalincome|9|67|263|
|Interestpayable andsimilarcharges|10|(491)|(613)|
|Gains/(losses)oninvestments||1,826|(358)|
|**Surplus for the year**||3,466|1,455|
|Movementindefined benefitpension|23|(3,170)|2,797|
|scheme||||
|**Total Comprehensiveincome**||296|4,252|
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||2021|2020|
|---|---|---|
||£000's|£000's|
|BalanceatlApril|22,836|18,584|
|Surplusfortheyear|3,466|1,455|
|(Increase)/decreaseinDefinedBenefitPension|(3,170)|2,797|
|liability|||
|Balanceat31March|23,132|22,836|
|**Balance Sheet **|Notes|2021|2020|
|---|---|---|---|
|||£000's|£000's|
|**Fixed Assets **||||
|HousingProperties|11|38,068|38,367|
|OtherFixedAssets|12|3,263|3,503|
|Investments|13|9,605|7,753|
|EndowmentFundAssets|14|417|399|
|**Total fixed assets **||51,353|50,022|
|**Current Assets **||||
|Assetsheldfordisposal|l5|137|277|
|Debtors-amountsfallingduewithinoneyear|16|1,183|978|
|Cashandcashequivalents||2,195|1,665|
|||3,515|2,920|
|**Creditors: **||||
|Amountsfalling duewithinoneyear|l7|(3,254)|(2,974)|
|**Net current assets/ (liabilities) **||261|(54)|
|**Total assets less current liabilities **||51,614|49,968|
|**Creditors: **||||
|Amountsfalling dueaftermorethanoneyear|18-19|(23,304)|(24,642)|
|**Provisions for liabilities and charges **||||
|Pensionliabilities|23|(4,972)|(2.,323)|
|OtherProvisions|22|(206)|(167)|
|**Net assets **||23,132|22,836|
|**Reserves **||||
|RestrictedReserves||2.553|2,681|
|EndowmentFundsReserves||417|399|
|UnrestrictedReserves:||||
|DesignatedReserves||14,426|13,531|
|GeneralReserves||5,736|6,225|
|TotalUnrestrictedreserves||20,162|19,756|
|**Total Reserves **|26|23,132|22,836|
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||2021|2020|
|---|---|---|
||£000's|£000's|
|Cashflowsfromoperatingactivities|||
|Operatingsurplus|2,063|1,279|
|_Adjustment for: _|||
|Remeasurementofpensionsliability|30|45|
|Exceptionalincome|67|263|
|Cashsurplusfromsale ofsocialhousing|147||
|Receiptofsocialhousing grant||15|
|Depreciation|1,452|1,458|
|Impairmentcharge||110|
|Amortisationofgrants|(370)|(377)|
|(Increase)/decreaseintradeandotherdebtors|(205)|124|
|Increase/(decrease)intradeandothercreditors|249|(510)|
|Pensionsdeficitpaymentsmade|(594)|(566)|
|Netcashinflow|2,839|1,841|
|Interestpaid|(443)|(490)|
|Cashflowsfrominvestingactivities|||
|Proceedsfromdisposaloffixedassets|l|1,451|
|Acquisitionof tangiblefixedassets|(969)|(1,253)|
|Netcashinflow/(outflow)frominvestingactivities|(968)|198|
|Cashflowsfromfinancingactivities|||
|SettlementofDWPloan||(507)|
|Repaymentofborrowing|(898)|(856)|
|Netcashoutflowfromfinancing activities|(898)|(1,363)|
|NetIncrease)/(decrease)incash|530|186|
|Cashandcashequivalentsat1April|1,665|1,479|
|Cashandcashequivalentsat31March|2,195|1,665|
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|Electricalinstallation|40years|
|---|---|
|Windowsanddoors|30years|
|Heating(excludingboilers),plumbingandventilation|30years|
|Bathrooms|20years|
|Boilers|15years|
|Kitchens|15years|
|Flooring|1Oyears|
|Freehold buildings(non-housing)|50years|
|---|---|
|Leaseholdimprovements|overthelife of thelease|
|Motorvehicles|4-6years|
|Plant,machineryandfixtures|3-15years|
|Officeequipment|5-10years|
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|**3Social Housing**|2021|2021|2021|2020|
|---|---|---|---|---|
||General|Supported|Total|Total|
||Needs|Housing|||
||£000's|£000's|£000's|£000's|
|Rentreceivable(netofservicecharges)|913|2,603|3,516|3,441|
|Profitondisposalsocialhousingassets|-|77|77||
|Servicecharges|-|964|964|946|
|**Net rents receivable **|913|3,644|4,557|4,387|
|Otherincome|-|-|-|2|
|**Total income from lettings **|913|3,644|4,557|4,389|
|**Expenditure on lettingactivities **|||||
|Management|(255)|(707)|(962)|(950)|
|Services|(2)|(270)|(272)|(314)|
|Routinemaintenance|(187)|(1271)|(1,458)|(1,253)|
|Plannedmaintenance|(l l)|(31)|(42)|(98)|
|Baddebts|(2)|(9)|(11)|(47)|
|Depreciationofhousing properties|(165)|(1,057)|(1,222)|(1,130)|
|Impairment charges||||(110)|
|Depreciationofotherhousingassets|(4)|(10)|(14)|(21)|
|**Total expenditure on lettings **|(626)|(3,355)|(3,981)|(3,890)|
|**Operating surplus on lettings **|287|289|576|466|
|VoidLosses(includedwithinthe above)|(2)|(53)|(55)|(54)|
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|**3Social housing and other activities **continued|||2021|||
|---|---|---|---|---|---|
||Turnover|Costofsales||Operating|Operating|
|||/delivery||Costs|Surplus|
||£000's|£000's||£000's|£000's|
|**Social housing lettings **||||||
|Generalneeds|913|(424)||(202)|287|
|Supportedhousing|3,644|(2,783)||(572)|289|
||4,557|(3,207)||(774)|576|
|**Other social housing activities **||||||
|Otherhousingactivities|23|(105)|||(82)|
|AmortisedgrantIncome|370||||370|
||393|(105)|||288|
|**Non-social housing activities **||||||
|Workservices|1,421|(1,463)|||(42)|
|Careservices|3,160|(3,345)|||(185)|
|OppurtunitiesWithoutLimits|1,286|(1,392)|||(106)|
|Policy&Communications||||(104)|(104)|
|BusinessDevelopment||||(189)|(189)|
|Varrier-JonesFoundationdonation|1,720||||1,720|
|Fundraising|413|(53)|||360|
|EnablingServices(Management,Finance,IT,HRandFacilities)|149|||(618)|(469)|
|Investmentincome|284|(40)|||244|
|Re-measurement ofdefinedbenefitpensionliability||||(30)|(30)|
||8,433|(6,293)||(941)|1,199|
|**Total social housing and non-housing activity surplus **|**13,383 **|**(9,605) **||**(1,715) **|**2,063**|
|Gainondisposalofassets|||||l|
|Exceptional income|||||67|
|Interestpayable|||||(491)|
|Gainoninvestments|||||1,826|
|**Surplus for year **|||||**3,466 **|
||||||51|
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|**3Social housing and other activities **_continued_||||2020||
|---|---|---|---|---|---|
||Turnover||Cost ofsales|Operating|Operating|
||||/delivery|Costs|Surplus|
||£000's||£000's|£000's|£000's|
|**Social housing lettings **||||||
|Generalneeds||895|(434)|(196)|265|
|Supportedhousing|3,492||(2,746)|(545)|201|
||4,387||(3,180)|(741)|466|
|**Other social housing activities **||||||
|Otherhousingincome||78|(147)||(69)|
|AmortisedgrantIncome||377|||377|
|||455|(147)||308|
|**Non-social housing activities **||||||
|Workservices|1,487||(1,585)||(98)|
|Careservices|2.621||(2,871)||(250)|
|OppurtunitiesWithoutLimits|1,411||(1,532)||(121)|
|Policy&Communications||||(85)|(85)|
|BusinessDevelopment||||(212)|(212)|
|Fundraising||174|(50)||124|
|Varrier-JonesFoundationdonation|1,685||||1,685|
|EnablingServices(Management,Finance,IT,HRandFacilities)||163||(871)|(708)|
|Investmentincome||264|(49)||215|
|Re-measurement ofdefinedbenefitpensionliability||||(45)|(45)|
||7,805||(6,087)|(1,213)|505|
|**Total social housing and non-housing activity surplus/(deficit) **|**12,647 **||**(9,414) **|**(1,954) **|**1,279 **|
|Gainondisposalofassets|||||884|
|Exceptional income|||||263|
|Interestpayable|||||(613)|
|Lossoninvestments|||||(358)|
|**Surplus for year **|||||**1,455 **|
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|||||2021|2020|
|---|---|---|---|---|---|
|||General|Supported|
Total||
|||Needs|Housing|||
|||Housing||||
|||(units)|(units)|(units)|(units)|
||**Number of units **|173|490|
663|663|
||Ownedandmanaged|173|486|
659|659|
||Managedonbehalfofothers||4|4|4|
|||173|490|
663|663|
|**_5_**|**Expenses and auditor's remuneration **|||||
|||||2021|2020|
|||||£000's|£000's|
||Includedintheprofitandlossaccount|arethefollowing:||||
||Depreciationon housingproperties|||1,153|1,130|
||Lossonreplacementofcomponentassets|||56||
||Impairmentofhousing properties||||110|
||Depreciationonotherfixedassets|||299|328|
||Profitonsaleofotherfixedassets||||884|
||Costsofoperatingleases|||86|88|
||Auditor'sremuneration:|||||
||Auditof thesefinancialstatements|||26|24|
|||||26|24|
##
||2021|2020|
|---|---|---|
|Staffcosts|£000's|£000's|
|Wagesandsalaries|5,871|5,141|
|Socialsecuritycosts|487|410|
|Pensioncosts|202|235|
||6,560|5,786|
||2021|2020|
||Number|Number|
|The averagenumberofpersonsemployedbytheTrust|||
|(including directors)duringtheyearwas asfollows:|||
|Averageheadcount|232|219|
|Averagefull-timeequivalentemployees|204|187|
||2021|2020|
|---|---|---|
|Bands|||
|£60,000-£70,000|||
|£70,001-£80.000|||
|£80,001-£90,000|||
|£90,001-£100,000|||
|£100,001-£110,000|||
|£110,001-£120,000|||
##
||2021|2020|
|---|---|---|
||£000's|£000's|
|AggregateemolumentspaidtoDirectors|301|291|
|Pension|30|31|
||331|322|
|TotalemolumentspaidtothehighestpaidDirector|112|112|
|TotalnumberofpaidDirectors|4|3|
|NumberofDirectorsinthedefinedbenefit pensionscheme|||
||2021|2020|
|---|---|---|
||£000's|£000's|
|Proceedsfromsaleofassets||1,451|
|Costofdisposals||(567)|
|||884|
||2021|2020|
|---|---|---|
||£000's|£000's|
|CoronavirusJobretentionscheme|67||
|Saleofhospitalpre-emptionrights||`263 `|
||67|`263 `|
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||2021|2020|
|---|---|---|
||£000's|£000's|
|Interestpayable onfinancial liabilities|`443 `|490|
|Interestpayable ontheunwindingof thenetpensiondeficit|`48 `|`123 `|
|liability|||
||491|`613 `|
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|**11Housing properties **|General|Supporting|Capital|Total|
|---|---|---|---|---|
||Needs|living|workin||
||||progress||
||£000's|£000's|£000's|£000's|
|Cost|||||
|BalanceatlApril2020|6.610|49,914|108|56,632|
|Acquisitions|452|423|35|910|
|Allocationofworkinprogress|54|54|(108)||
|Disposals|(89)|(84)|-|(l73)|
|Balanceat31March2021|7,027|50,307|35|57,369|
|Depreciation|||||
|BalanceatlApril2020|3,005|15,260|-|18,265|
|Depreciationchargeforyear|198|955|-|1,153|
|Disposals|(52)|(65)|-|(117)|
|Balanceat31March2021|3,151|16,150|-|19,301|
|Netbookvalue|||||
|At31March2021|3,876|34,157|35|38,068|
||--||||
||--||||
|At31March2020|3,605|34,654|108|38,367|
##
|**12 Other fixed assets **|Land&|Motor|ITAssets|OtherFixed|Total|
|---|---|---|---|---|---|
||Buildings|Vehicles||Assets||
||£000's|£000's|£000's|£000's|£000's|
|Cost||||||
|BalanceatlApril2020|5,735|271|302|286|6,594|
|Acquisitions|28|11|20|-|59|
|Disposals||(15)|-|-|(15)|
|Balanceat31March2021|5,763|267|322|286|6,638|
|Depreciation||||||
|BalanceatlApril2020|2,501|151|208|231|4,637|
|Depreciationchargeforyear|199|30|55|15|299|
|Disposals|-|(15)|-|-|(15)|
|Balanceat31March2021|2,700|166|263|246|3,375|
|Netbookvalue||||||
|At31March2021|3,063|101|59|40|3,263|
|At31March2020|3,234|120|94|55|3,503|
##
|**Market Value **|||
|---|---|---|
||2021|2020|
||£000's|£000's|
|At1April|7,753|8,111|
|Additions|3,097|2.036|
|Disposals|(2,679)|(2,003)|
|Realisedgains|256|113|
|Unrealised&othermovements|1,178|(504)|
|MarketValue at31March|9,605|7,753|
|**Historical cost of assets **|||
||2021|2020|
||£000's|£000's|
|Historicalcostofassets|8,024|7,596|
|Unrealisedgains|1,581|157|
|MarketValueat31March|9,605|7,753|
|**Held as follows: **|||
||2021|2020|
||£000's|£000's|
|Cash&cashequivalents|56|234|
|FixedIncome|1,234|1,183|
|UKEquities|2,041|1,377|
|Global Equities|5.256|3,793|
|AlternativeInvestments|1,018|1,166|
|MarketValueat31March|9,605|7,753|
|**14 Endowment Fund Assets **|||
||2021|2020|
||£000's|£000's|
|Cash|159|156|
|Investments|101|83|
|Property|157|160|
||417|399|
##
||2021|2020|
|---|---|---|
||£000's|£000's|
|Housingproperty|-|140|
|Commercialproperty|137|137|
||137|277|
|AttheBalanceSheetdatetheTrustheldnohousingpropertiesforsale(2020:One).One|||
|oftheTrust'scommercialpremisesisbeing activelymarketedforsaleinIpswich,|||
|followingitsclosureasanoperationalfacilityin2019.There arealsoanumberof||surplus|
|assets,withlittle ornocarryingvalue,withinthevillageofPapworthEverardforwhich|||
|disposal isbeingsought.|||
|**16 Debtors **|||
||2021|2020|
||£000's|£000's|
|Trade debtors|314|467|
|Prepaymentsandaccruedincome|627|321|
|Tenantarrears|87|108|
|Otherdebtors|155|82|
||1,183|978|
|**Tenant Arrears: **|||
||2021|2020|
||£'000|£'000|
|Currenttenantarrears|87|106|
|-lessprovisionforbad and doubtfuldebts|||
|Formertenantarrears|63|87|
|-lessprovisionforbadanddoubtfuldebts|(63)|(85)|
||87|108|
##
||2021|2020|
|---|---|---|
||£000's|£000's|
|Loans(note20)|938|898|
|Tradecreditors|216|271|
|Othertaxationandsocialsecurity|191|125|
|Othercreditors|415|316|
|Rentsreceivedinadvance|209|200|
|Accrualsanddeferredincome|883|762|
|Recycledcapitalgrantsfund|402|402|
||3,254|2,974|
|**18 Creditors: amounts falling due after more than one year**|||
||2021|2020|
||£000's|£000's|
|Loans(note19)|12,614|13,552|
|Deferred grantincome|10,690|11,090|
||23,304|24,642|
|**Deferred grant income**|||
||2021|2020|
||£000's|£000's|
|Recycledcapitalgrantsfund|402|402|
|SocialHousingGrants|10,655|11,025|
|Othergrants|35|35|
|Other||30|
||11,092|11,492|
|Amountsfallingduewithinoneyear|402|432|
|Amountsfallingdueaftermorethanoneyear|10,690|11,060|
||11,092|11,492|
##
##
||2021|2020|
|---|---|---|
||£000's|£000's|
|**Cost **|||
|Costat1April|19,434|19,419|
|Additions/disposalsinyear|-|15|
|Costat31March|19,434|19,434|
|**Amortisation **|||
|Amortisationat1April|8,374|8,003|
|Amortisationincomeinyear|370|371|
|Amortisationat31March|8,744|8,374|
|DeferredGrantincome|10,690|11,060|
|**Recycled Capital Grant Fund **|||
||2021|2020|
||£000's|£000's|
|At1April|402|401|
|Utilisedintheyear|||
|InterestCreditedtothefund|||
|At31March|402|402|
|Duewithinoneyear|402|402|
|Due aftermorethanoneyear|||
||402|402|
##
||2021|2020|
|---|---|---|
||£000's|£000's|
|Secured bankloans|||
|Duewithinoneyear|938|898|
|Due betweenoneandtwoyears|990|948|
|Duebetweentwoandfiveyears|3,244|3,102|
|Dueingreaterthanfiveyears|8,380|9,502|
||13,552|14,450|
|**Outstanding Loans by Lender **|||
||2021|2020|
||£000's|£000's|
|OrchardBrook|464|480|
|Lloyds|2.871|2,980|
|RoyalBankofScotland|5,663|6,178|
|Barclays|4,554|4,812|
||13,552|14,450|
##
|**Interest rate **|**End of fixed rate period **|**£000's **|
|---|---|---|
|Fixed3.91%|December2039|1,987|
|Fixed2.68%|December2039|884|
|**Interest rate **|**End of fixed rate period **|**£000's **|
|---|---|---|
|Fixed5.66%|September2021|465|
|Fixed7.09%|September2024|428|
|Fixed6.97%|November2024|160|
|Fixed4.57%|July2026|400|
|Fixed4.74%|February2027|1,000|
|Fixed3.61%|March2027|900|
|Variable0.53%||2,310|
|**Interest rate **|**End of fixed rate period **|**£000 **|
|---|---|---|
|Fixed3.43%|July2038|1,800|
|Variable0.29%||2,000|
|Variable0.28%||700|
##
||2021|2020|
|---|---|---|
||£000's|£000's|
|NetdebtatlApril|12,785|13,827|
|Cashflowsinperiod|(530)|1,898|
|Repaymentofborrowing|(898)|(856)|
|Balance at31March|11,357|12,785|
|Netdebtmadeupasfollows:|||
|Loansdueinlessthanoneyear|938|898|
|Loansdueinmorethanoneyear|12,614|13,552|
|Cashheld|(2,195)|(1,665)|
|Netdebtheld|11,357|12,785|
|**2Other Provisions **|||
||2021|2020|
||£000's|£000's|
|Balance atlApril|167|143|
|Provisionsmadeduringtheyear|39|57|
|Provisionsusedduringtheyear||(33)|
|Balanceat31March|206|167|
##
||31March|31March|
|---|---|---|
||2021|2020|
||£000's|£000's|
|Fairvalueofplanassets|18,226|16,048|
|Presentvalueofdefinedbenefitobligation|(23,198)|(18,371)|
|Definedbenefit(liability)toberecognised|(4,972)|(2,323)|
##
||31March|31March|
|---|---|---|
||2021|2020|
||£000's|£000's|
|Defined benefitobligationatlApril|18,371|20,899|
|Currentservicecost|-|45|
|Expenses|25|23|
|Interestexpense|427|487|
|Membercontributions|-|14|
|Actuarial losses/(gains)duetoschemeexperience|(131)|81|
|Actuarial losses/(gains)duetochangesin
demographicassumptions|84|(183)|
|Actuarial(gains)/lossesduetochangesinfinancial
assumptions|4,797|(2,646)|
|Benefitsandexpensespaid|(375)|(349)|
|Defined benefitobligationat31March|23,198|18,371|
##
||31March|31March|
|---|---|---|
||2021|2020|
||£000's|£000's|
|Fairvalueofplan assetsatlApril|16,048|15,404|
|Interestincome|379|364|
|Experience onplanassets(excludingamountsincluded
ininterestincome)-gain(loss)|1,580|49|
|Contributionsbyemployer|594|566|
|Contributionsbyplanparticipants||14|
|Benefitspaid andexpenses|(375)|(349)|
|Fairvalueofplanassetsat31March|18,226|16,048|
||31March|31March|
|---|---|---|
||2021|2020|
||£000's|£000's|
|Currentservicecost||45|
|Expenses|25|23|
|Netinterestexpense|48|123|
|Definedbenefitcoststo berecognised|73|191|
##
|**Defined BenefitCosts Recognised in the Statement of Changes **|**in Reserves **||
|---|---|---|
||31March|31March|
||2021|2020|
||£000's|£000's|
|Experienceonplanassets(excludingamountsincluded
innetinterestcost)|1,580|49|
|Experiencegainsandlossesarising ontheplanliabilities|131|(81)|
|Effectsofchangesinthe demographicassumptions|||
|underlyingthe presentvalueof thedefinedbenefit|(84)|183|
|obligation|||
|Effectsofchangesinthefinancialassumptions|||
|underlyingthe presentvalueofthe definedbenefit|(4,797)|2,646|
|obligation|||
||(3,170)|2,797|
|**Plan Assets **|||
||31March|31March|
||2021|2020|
||£000's|£000's|
|Globalequity|2,905|2,347|
|Absolutereturn|1,006|837|
|Distressedopportunities|526|309|
|Creditrelativevalue|573|440|
|Alternativeriskpremia|686|1,122|
|Fundofhedgefunds|2|9|
|Emergingmarketsdebt|736|486|
|Risksharing|663|542|
|Insurance-linkedsecurities|438|493|
|Property|379|354|
|Infrastructure|1,215|1,194|
|Privatedebt|435|323|
|OpportunisticIlliquidCredit|463|388|
|HighYeild|546||
|OpportunisticCredit|500||
|CorporateBondFund|1,077|915|
|Liquidcredit|218|7|
|Longlease property|357|278|
|Securedincome|758|609|
|Liabilitydriveninvestment|4,632|5,326|
|Currentassets|111|69|
||18,226|16,048|
##
||31March|31March|
|---|---|---|
||2021|2020|
||%perannum|%perannum|
|Discountrate|2.2|2.35|
|Inflation(RPI)|3.25|2.56|
|Inflation(CPI)|2.87|1.56|
|SalaryGrowth|2.87|2.0|
|Allowanceforcommutationofpensionforcashat
retirement|75%of
maximum
allowance|75%of
maximum
allowance|
||31|March|31March|
|---|---|---|---|
|||2021|2020|
|||Life|Life|
||expectancy||expectancy|
||(years)||(years)|
|Maleretiringin2020||21.6|21.5|
|Femaleretiringin2020||23.5|23.3|
|Maleretiringin2040||22.9|22.9|
|Femaleretiringin2040||25.l|24.5|
|**24Operating Leases **||||
||2021||2020|
||£000's||£000's|
|Futureminimumleasepaymentsdueareasfollows:||||
|Lessthanoneyear||82|56|
|Betweenoneandfiveyears||88|64|
|||170|120|
##
|**26 Reserves **|||||||
|---|---|---|---|---|---|---|
|**Movement in funds **|||||||
||**At 31 **|**Income **|**Expenditure **|**Investment **|**Other **|**At 31 **|
||**March **|||||**March 2021 **|
||**2020 **||||||
|General|6,225|12,562|(9,473)|1,808|(5,386)|5,736|
|Reserves:|||||||
|Designated|||||||
|funds:|||||||
|FixedassetFund|13.53||(1,349)||2,244|14,426|
|Restricted|||||||
|Funds:|||||||
|Capitalfund|2,492|5|(166)|||2,331|
|BuildingBetter||732|(732)||||
|Opportunities|||||||
|Leicesterageing|28||||(28)||
|together|||||||
|OtherHousing|32|||||32|
|funds|||||||
|FirstStepsto|57|37|(19)|||75|
|success|||||||
|Covidrecovery||57|(53)|||4|
|funds|||||||
|GardenStudios||**46 **||||**46 **|
|Otherfunds|72|8|(15)|||**65 **|
|Endowment|**399 **|3|(3)|**18 **||**417 **|
|Funds|||||||
||**22,836 **|**13,450 **|(11,810)|**1,826 **|**(3,170) **|**23,132 **|
##
##
|**Analysis of Net **|**Assets between **|**Funds **||||
|---|---|---|---|---|---|
||**General **|**Designated **|**Restricted **|**Endowment **|**Total **|
||**Reserves **|**Reserves **|**Reserves **|**fund **|**Reserves **|
|FixedAssets|9,605|39,068|2,263|417|51,353|
|Current|3,225||290||3,515|
|Assets||||||
|Liabilitiesdue|
(1916)|(1,338)|||(3,254)|
|within1year||||||
|Liabilitiesdue|
(4,972)|(23,304)|||(28,276)|
|afterone||||||
|year||||||
|Provisionsfor|(206)||||(206)|
|liabilities||||||
|Total|5,736|14,426|2,553|417|23,132|
##
|**28 Value for Money Metrics **||||
|---|---|---|---|
|**28.1 **
**Reinvestment **||||
|||2021|2020|
|||£000's|£000's|
|Reinvestmentin housingstockisasfollows||||
|Acquisition&development|
ofhousingproperties||19|
|Capitalworkstoexistingproperties||910|631|
|Totalreinvestment||910|650|
|HistoricalcostofHousingProperties||57,369|56,632|
|Percentageofreinvestment||1.6%|1.1%|
|**28.2 **
**New Supply delivered **||||
|||2021|2020|
|Newsupplydeliveredisasfollows:||||
|Newgeneralneedsunits||||
|Newsupportedlivingunits|||4|
|Totalnewunits|||4|
|TotalUnitsowned||659|659|
|Percentageofnewsupply||0.2%|0.5%|
##
|**28.3 **
**Gearing **|||
|---|---|---|
||2021|2020|
||£000's|£000's|
|Gearingismadeupasfollows:|||
|Loansdueinlessthanoneyear|938|898|
|Loansdueinmorethanoneyear|12,614|13,552|
|Cashheld|(2,195)|(1,665)|
|Netdebtheld|ll,357|12,785|
|HistoricalcostofHousingProperties|57,369|56,632|
|Gearing|19.8%|22.6%|
|**28.4**
**Interest cover **|||
||2021|2020|
||£000's|£000's|
|EBITDAMRIismadeupasfollows:|||
|OperatingSurplusforSocialHousingActivities|576|576|
|AddbackdepreciationforHousingUnits|1,153|1,130|
|LessAmortisationofgovernmentgrants|(370)|(377)|
||1,359|1,329|
|Interestpayable|443|490|
|EBITDAMRI|307%|271%|
##
##
|**28.5 **
**Social Housingcosts per unit **|||
|---|---|---|
||2021|2020|
||£000's|£000's|
|Perunithousingcostsismadeupasfollows:|||
|Managementcosts|950|972|
|Maintenancecosts|787|714|
|Servicechargecosts|1,022|963|
|Depreciation|1,222|1,130|
||3,981|3,779|
|Totalnumberofunits|662|663|
|Totalcostper unit|6.0|5.7|
##
||2021|2020|
|---|---|---|
||£000's|£000's|
|Operatingmarginismadeupasfollows|||
|Operatingsurplusfromgeneralneeds|287|265|
|Operatingsurplusfromsupportingliving|289|311|
|TotalOperatingSurplus|576|576|
|Revenuefromgeneralneeds|913|895|
|Revenuefromsupportedliving|3,644|3,492|
|Totalrevenue|4,557|4,387|
|Operatingmarginfromgeneralneeds|31.4%|29.6%|
|Operatingmarginfromsupportedliving|7.9%|8.9%|
|Totaloperatingmargin|12.6%|13.1%|
##
|**28.8 **
**Returnon Capital Employed (ROCE) **|||
|---|---|---|
||2021|2020|
||£000's|£000's|
|ROCEismadeupasfollows|||
|OperatingSurplusforSocialHousingActivities|576|576|
|Lossondisposalof fixedassets||(15)|
|Adjustedoperatingsurplus|576|56l|
|Netbookvalueofhousingproperties|38,068|38,477|
|Currentassets|3,516|2,941|
|Currentliabilities|(3,254)|(2,576)|
|Totalassetslesscurrentliabilities|38,330|38,842|
|ROCE|1.5%|1.4%|