REPORT AND FINANCIAL STATEMENTSYEAR ENDED 31 MARCH 2019REGISTERED NUMBER: IP17133R
Trident Housing Association Limited and its subsidiaries
Report and financial statements for the year ended 31 March 2019
Association Information
Co-operative and
Community
Benefit Society number:
IP 17133R
Regulator of
Social Housing
number:
L0979
Registered Office: 12 Fairlie House, Trident Close, Erdington, Birmingham, B23 5TB
Directors and Board of
Management:
The directors of the company who served during the year ended 31 March
2019 are listed as follows:
Board of Management Andrew Ballard - Group Chair
Rob Turton (resigned September 2018)
Katie Kershaw
Colin Small
Nathan Talbott
Rosemarie Anderson (resigned May 2019)
John Morris
Yvonne Leishman
Brian Carr
Simon Hatchman (appointed August 2018)
Andrew Cooke (appointed November 2018)
Directors John Morris - Group Chief Executive
Andrew Cooke - Group Finance Director
David Jones - Director of Housing & Social Care (resigned November 2018
Ann Rivera - Director of People & Performance (resigned September 2018)
Company Secretary Andrew Cooke
Auditors BDO LLP, Two Snowhill, Birmingham, B4 6GA
Bankers National Westminster Bank Plc, 1 St Philips Place, Birmingham, B3 3PP
Trident Housing Association Limited and its subsidiaries
Page | 1 Report and financial statements for the year ended 31 March 2019
Index to the Financial Statements
Chair's statement
2
Strategic Report and Operating and Financial Review
Principal Activities, Governance and Legal Structure
Business and Financial Review
Objectives and Strategy
Achievements
Value for Money
Risk Management
Capital Structure and Treasury Policy
Future Developments
Statement of Compliance
4
Code of Governance and Financial Viability Standard
Report of the Board
34
Independent Auditor's Report to the Members of Trident Housing Association and its subsidiaries
41
Consolidated Statement of Comprehensive Income
44
Association Statement of Comprehensive Income
45
Consolidated Statement of Financial Position
46
Association Statement of Financial Position
Consolidated Statement of Changes in Reserves
Association Statement of Changes in Reserves
47
48
49
Consolidated Statement of Cash Flows
50
Notes to the Financial Statements
51
Trident Housing Association Limited and its subsidiaries
Page | 2 Report and financial statements for the year ended 31 March 2019
Chair's statement
It has been another successful year for the Trident Group. During the year the Group has responded well in
achieving the three priorities set out within its five year Strategic Plan; People, Growth & Sustainability and
Service Delivery.
The Group aims to be “an employer of choice”, understanding its customers better in order to provide
targeted services, committed to delivering an effective service which represents best value and aspires to
create steady, sustainable growth both in terms of property numbers and contract income.
The wider sector within which we operate still presents significant challenges which the organisation has
responded to well. Particular risks have been identified, controlled and mitigated through the Risk
Management Framework, which is firmly embedded into the culture of the organisation. Stress testing has
formed a significant component part of the Risk Management Framework, risks such as Brexit uncertainty,
finance, safety, asset compliance and data management have been continually tested throughout the year.
The Group Board has full ownership of the Strategic Risk Register which is reviewed and agreed at both
Group Board level and is reviewed in detail at each Audit & Assurance committee meeting. All raw risks
and residual risks are scored in line with the Group Board risk appetite and ranked in descending order.
Monitoring of risks are through linked key performance indicators presenting direction of travel against
predetermined targets.
In so far as finances are concerned, there has also been a particular focus during the period on void
management, income management and reliance on agency staff within the care and support arm of the
Group. These areas firmly sit within the monitoring regime of the Group Board and our Executive colleagues
have responded well to the stretched targets that were set within the Business Plan finances.
Value for money has also been a key focus of the Group Board, ensuring the organisation remains efficient
and delivers the priorities set out within the Strategic Plan. Key metrics are in place that benchmark the
organisation‟s performance against its peers and the broader sector. A cost improvement programme
remains in place to respond to the downward pressure on housing associations in particular the 1% cut in
rental income and a reduction in the availability of funds for work with Local Authority partners. The Group
has successfully achieved its cost improvement target during the period through retendering its insurances,
restructuring its back office support functions and is in the process of retendering grounds maintenance and
planned maintenance services which will have a direct benefit to our residents.
We continue to be supported by Savills in respect to our Treasury Management. The Group Board have
taken assurance through its Treasury Policy and monitoring regime that it remains compliant with lender
covenants and has significant headroom to further enhance its risk management controls and mitigations.
The Group Board have also discussed as part of a refreshed risk appetite the level of liquidity it maintains at
any one time at the same time the weighting of fixed and variable debt which the organisation holds. During
the period the Group Board approved the fixing of £20,000k of variable based loans in order to maintain its
Treasury Policy and mitigate uncertainty in interest rates that may fluctuate as a result of Brexit.
Governance remains a key priority for the Group Board and Executives. We continue to work with The
Governance Forum (TGF) on the implementation of both a Succession Strategy and a Governance Action
Plan in order to retain the highest grading with TGF the Group also continues to expand the use of the
governance IT portal - CG First.
Trident Group remains compliant with the Regulator of Social Housing (RSH), having had its grading
reconfirmed at G1/V1, The Group also maintains across all of its care homes a “good” standard with the
Care Quality Commissioner.
The Group has also demonstrated that it has a strong financial profile, built on robust and prudent
assumptions, good headroom within financial covenants and appropriate levels of liquidity.
The level of financial risk being taken on by the Group is also not considered to be unreasonable and the
RSH has assurance that the crystallisation of identified risks can be mitigated successfully in most
circumstances.
Trident Housing Association Limited and its subsidiaries
Page | 3 Report and financial statements for the year ended 31 March 2019
Chair's statement (Continued)
As part of ongoing Group Board succession, during the financial year Group Board members completed
their service and following a successful recruitment and skills assessment campaign further members were
appointed; all being appointed by competition and by way of a skills and competencies basis.
Trident Group maintains the National Housing Federation Code of Governance having adopted this code in
March 2016 which replaced the previous code adopted by the Group, the Public Sector Code and the Group
Board has confirmed full compliance with the code.
Throughout the year Trident Group continued to work closely with its Local Authority partners, successfully
delivering on a wide range of support contracts across East and West Midlands culminating with a 100%
achievement in the payment by outcomes target. The Group also successfully managed its care portfolio,
achieving good results with its lead regulators. During the period, the Group was successful in being
awarded the PURE contract with Birmingham City Council; a contract that embeds the placing of vulnerable
urban residents into employment and training.
In addition to the support contracts Trident Group successfully completed on time and within budget its
development at Wrockwardine Wood; a development of 61 units in Telford.
In summary, 2018/19 has been a successful and challenging year, one which the Group has demonstrated
its viability through risk control and mitigation, achieving its income, expenditure and liquidity targets set out
within the business plan finances and meeting the priorities set within the Strategic Plan.
Andrew Ballard
Chair of Trident Group
Date
Trident Housing Association Limited and its subsidiaries
Page | 4 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Principal Activities, Governance and Legal Structure
The legal parent of the Group is Trident Housing Association Limited through which all statutory powers of
the Group are vested and all the accounts of the Group are consolidated. The controlling powers of the
Group are exercised by the Group Board and the individual functions of Trident Housing Association are
divested to the Group Board. The Group operates as a Social Investment Group which incorporates all the
group services of housing, maintenance, support, social enterprise and charitable activities. These functions
are discharged by the legal subsidiaries and the Trident Group Board. Trident Group (“The Group”) comprises: Trident Housing Association Limited A Co-operative and Community Benefit Society, an exempt charity and registered provider with Homes England. Trident Housing Association provides landlord services for the Group in respect of housing management and maintenance. Trident Housing Association is also the parent company of the Group and provides central services to Group members. Trident Reach The People Charity A registered charity. Trident Reach the People Charity provide Care and Support services to residents over a number of geographical areas in the Midlands from Trident Housing Association properties and those of other registered providers. Trident Star Limited Trident Star, a company limited by shares, is the Group's commercial arm and currently manages one social enterprise for the Group and the residents shop situated in Trident House. Partnerships The Group continues to engage in a wide range of partnership working including participation in the Matrix partnership of housing associations which seeks to pool resources for joint procurement and housing development. The Group is engaged in a social enterprise partnership with Jericho Landscape, a community controlled business that delivers grounds maintenance, property development and refurbishment to Trident Group schemes. Finally, the Group also has a partnership with Shahjalal, a Bangladeshi co-operative based in Aston, Birmingham. Trident Group provides maintenance and housing services to Shahjalal.
Trident Housing Association Limited and its subsidiaries
Page | 5 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Principal Activities, Governance and Legal Structure (continued)
Governance
There has continued to be a collective and collaborative approach to effective governance across the Group
Board and the Executive at Trident which is helping to ensure the Association not only complies with its
adopted codes of governance and conduct but also with international best practice. The Group Board and
Executive Team communicate regularly ensuring there is a clear flow of information which helps to inform
robust decision-making in the boardroom.
The Association are constantly assessing their governance activity against a best practice framework which
identifies compliance and performance drivers of an effective governance model. Work to implement the
compliance drivers which are Resources, Competency and Execution, helps to monitor compliance with the
adopted code of governance, examines the competency of the Group Board in relation to the skills,
experience, contribution, balance, diversity, probity, training and evaluation mechanisms that are in place.
The execution element addresses how well the Group Board make decisions, assesses the internal and
financial controls, their engagement with the vision and also with all stakeholders.
In relation to these Compliance Drivers, there is clear evidence that the main requirements for
demonstrating effectiveness in these areas are routine aspects of the governance work undertaken at
Trident Group. Examples of this are outlined below:
Resources
Terms of reference for Group Board and Committees reviewed;
NHF Code of Governance Compliance Checklist completed;
RSH Standards Compliance Checklist completed;
Plans in place to produce an integrated annual report;
Strategic Plan reviewed by the Executive including externally facilitated sessions;
Full calendar of meetings produced and issued to all Board Members;
Strategic policies and review schedule in place with delegated authorities for reviews of policies
outlined;
On-going completion of actions from the Board approved Governance Action Plan;
Active risk register which is reviewed by the Audit and Assurance Committee at each meeting;
Role descriptions for Board in place;
Schedule of matters reserved for the Board reviewed and in place;
Skills report updated to reflect current Board membership;
Profiles of all Board Members with photographs are on website;
Statutory compliance checklist is now in place and is discussed at SMT level; and
Developing a Governance Framework Handbook which houses all of the key governance
documentation.
Competency
Board has good range of skills as outlined in the skills report with strengths (4 or more individuals
with high or very high skills) in 20 out of 27 listed skills;
Recognition of need to improve some aspects of diversity included in skills and succession reports;
Proportion of executives and non-executives is in line with the rules and NHF Code;
Declaration of interests forms completed by Board Members and register signed off at Audit
Committee;
Use of induction checklist and induction pack and timetable of activities for newly appointed Board
Members;
Board Members are regularly sent details of and attend training that helps them to further develop
their competency in relation to their role on the Board;
Recruitment campaigns informed by skill gaps and succession planning;
Succession plan in place; and
Appraisals and mid-term reviews take place annually and every six months respectively.
Trident Housing Association Limited and its subsidiaries
Page | 6 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Principal Activities, Governance and Legal Structure (continued)
Execution
Decisions are recorded in meeting minutes with a full, monitored, RAG rated action tracker in place;
The risk register is discussed at each Audit and Assurance Committee as well as at Board meeting;
The Group have an internal auditor who reports directly to the Audit and Assurance Committee;
The People and Performance Committee oversee remuneration and a full, external review of Board
Member Pay has been scheduled for the next financial year in line with provision D10 of the NHF
Code. Employee pay is appropriately scrutinised and benchmarked at this Committee;
An external Board observation concluded that: “…members contributed, challenged and scrutinised
appropriately.”
The Association makes information available to its various stakeholder groups through the website,
newsletters and by engaging in partnership work (such as Matrix);
There is a Strategic Plan in place which embodies the vision and objectives of the Association;
Board Members are ambassadorial and attend events and training; and
Stakeholder engagement takes place through resident groups and other activity. More targeted
stakeholder feedback and research is scheduled for the next financial year, including but not limited
to staff and customer surveys.
Aspects of the work across these areas has formed part of the on-going Board effectiveness review
processes for which there is a 3 year plan in place.
With compliance aspects satisfied, the Board have also examined aspects of their performance, for example
a board observation was undertaken in March 2019. Looking forward, the Performance Drivers – Behaviour,
impact and transparency will be further explored in the next financial year when Trident Group pursue a
kitemark in governance via The Governance Framework – a process that is accredited by ICSA: The
Governance Institute. This is an in depth and robust process that allows organisations to assess their
governance practices against internal best practice alongside the requirements of practice within their own
sector.
The continued commitment to good governance at Trident Group is evidenced by the retention of its G1 and
V1 grading from the Regulator of Social Housing last assessed via a stability check in November 2018. Ever
striving to operate in a manner that reflects all facets of its work, the Group also reflect the practices of the
principles of the Charity Governance Code and the Good Governance Standard for Public Services in what
they do.
Board Activity
The key activities of the Board during the last financial year have included but are not limited to:
Risk appetite;
Risk management framework;
Development;
Treasury strategy;
Care and support;
Customer demographics;
Stock condition;
Regulating the Standards;
Compliance;
Business plan assumptions;
Executive remuneration;
Right to Buy;
Homes England Grant agreement;
Resident and Customer Voice; and
Opportunities from the Commonwealth Games coming to the region.
Trident Housing Association Limited and its subsidiaries
Page | 7 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Principal Activities, Governance and Legal Structure (continued)
Main requirement B of the NHF Code states that the Board has: “The duty to be effective in the strategic
leadership and control of the organisation and act wholly in its best interest.” The activity the Group Board
has undertaken during the last 12 months has sought solely to be in the best interests of all areas of the
business as has been evident in the deliberation of a number of topics.
Board Members continue to have collective oversight and ownership of the risk management framework and
the internal control and assurance framework. The work of the Board provides clear oversight for the
monitoring of the work of the Executive and there remains a good but challenging relationship between the
Board and the Executive with the Executive being held to account.
Audit and Assurance Committee
The key activities of the Audit and Assurance Committee during the last financial year have included but are
not limited to:
Statutory accounts;
KPI‟s;
Budget;
Regulatory returns;
Business plan;
Stress testing against the business plan;
Compliance check list;
Treasury policy;
Asset and liability;
Risk management framework (including risk register); and
Internal controls assurance.
People and Performance Committee
The key activities of the People and Performance Committee during the last financial year have included but
are not limited to:
Appraisals – including mid-term Reviews;
Recruitment;
Executive remuneration;
Board skills;
Succession planning;
Shareholding;
Terms of reference;
Gender Pay Gap;
Equality and Diversity profile and pay analysis; and
Pay policy.
Safeguarding Committee
The key activities of the Safeguarding Committee during the last financial year have included but are not
limited to:
Policies;
Statutory returns;
Safeguarding internal audit;
Terms of reference;
Analysis of trends; and
Annual Child Protection, Safeguarding Children and Families Report.
Trident Housing Association Limited and its subsidiaries
Page | 8 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Principal Activities, Governance and Legal Structure (continued)
Risk and Control
The Group Board continues to have overall oversight of risk which has been a key part of the agenda for
both of the strategic away days held by the Board. Risk is a standing agenda item for all meetings and is
included on the report cover sheet that precedes each report. Aspects of risk covered in these discussions
have included: Brexit, GDPR, safeguarding, KPIs, risk appetite, strategic risk register and stress testing.
Discussions around risk have continued to take into account the changing nature of the sector and the role
of Associations in protecting their residents alongside the future political and economic impact of a post-
Brexit economy and how to navigate this. In addition to this, the Group Board have also discussed fire
safety, rent inflation, succession, supplier concentration, interest rates, new requirements from the regulator
– including the new VFM Standard issued by the Regulator of Social Housing and the gender pay gap.
The Audit and Assurance Committee continue to undertake significant scrutiny of risk and control matters
who then, in line with the agreed reporting structure, report their work to the Group Board who have ultimate
responsibility for risk.
Training, Succession and Induction
The work conducted on succession and skills has helped to inform recruitment campaigns to address gaps
in membership and also to ensure the right skills are represented on the Group Board, also taking into
account the future needs of the Association. Board Members are encouraged to attend training with a
number of them having attended the NHF Members Conference as well other training. There has been an
in-house training programme which has seen the Board receive training on finance, health and safety and
GDPR which are all matters that are linked to risks outlined on the risk register. CPD is encouraged for all
staff. Members of the SMT have completed the accredited Effective Board Member Programme which has
helped to build the contingent of senior staff who have developed their knowledge, understanding and skills
in applying effective governance.
The latest Succession Report was completed in August 2018 and indicated that there is one Board Member
who is due to retire in 2020, with two further Members due to retire in 2021, one of whom is the SID. As
such, in the next financial year the Board will be focusing on creating a future skills matrix and ensuring
recruitment is undertaken in line with these needs and the strategic objectives for the Association moving
forward. The Group Board will also continue to consider its commitment to boardroom diversity across the
recruitment processes and in line with its pledge to the Diversity in the Boardroom Campaign.
All newly appointed Board Members are subject to a structured and robust induction programme which
includes site visits and presentations from the Executive and Senior Leadership Teams and includes a
governance refresher. Board Members are invited to comment on the structure and appropriateness of the
induction as well as record any comments and training needs.
Oversight and Monitoring
The Board and the Committees have fulfilled their remit in line with their terms of reference. All Committees
report to on their work to the Board in line with the terms of reference.
The Audit and Assurance Committee continue to offer the challenge and scrutiny needed to ensure the risk
management, controls and governance required are in place. Policies have also been presented to the
Committee for approval.
The Group Board
The Group Board consists of ten Members, which includes the Group Chief Executive and Group Finance
Director. There were 7 meetings of the Board held during the last financial year and 2 away days. The
Annual General Meeting (AGM) was held in September 2018.
Trident Housing Association Limited and its subsidiaries
Page | 9 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Principal Activities, Governance and Legal Structure (continued)
Committee Membership
Committee Group Board Members
Audit and Assurance Katie Kershaw
Colin Small - Chair
Andy Ballard
Yvonne Leishman
Brian Carr
Simon Hatchman
John Morris
Rob Turton (retired September 2018)
People and Performance Colin Small – Chair
Rosemarie Anderson (resigned May 2019)
Andy Ballard
Brian Carr
John Morris
Safeguarding Andy Ballard – Chair
John Morris
Nathan Talbott
Brian Carr
Diversity
Attendance
Attendance – April 2018 – March 2019
Board – 90%
Audit and Assurance Committee – 91%
People and Performance Committee – 89%
Safeguarding Committee – 86%
Tenure
Tenure
2 Board Members have served for less than one year
2 Board Members have served for between one and two years
6 Board Members have served for between three and six years
Gender
30% of the Board Members are female
70% of the Board Members are male
Age
20% of the Board Members are aged between 26 and 40
80% of the Board Members are aged between 41 and 64
Ethnicity
1 Board Member is from a BAME background
9 Board Members are from White British backgrounds
Trident Housing Association Limited and its subsidiaries
Page | 10 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Principal Activities, Governance and Legal Structure (continued) Skills
Key skills strengths identified in the last skills report include:
Summary of Board Strengths
Asset Management
Customer Services
Equality & Diversity/ Human Rights
Financial Management & Accountancy
Governance & Regulations of Social Housing
Governance & Regulations of Care & Support
Housing Management/ Landlord Services
Human Resources Strategy
Information Management
Information & Communication
Legal - e.g. Company law
New Business/ Entrepreneurial Skills
Operational Management
Partnership working with Statutory Bodies & Local
Authorities
Resident Engagement & Scrutiny
Risk based auditing, risk management & assurance
Social investment and social enterprises
Staff Management and human resources
Staff training and learning
Strategic business planning
Membership
The Group Board Members are:
Andy Ballard (Chair) Andy, a qualified solicitor has over 30 years‟ experience in the housing sector and holds various Non-Executive appointments. Andy‟s main areas of work and expertise are advising on matters of governance and strategy, regulation, mergers and group structures, and restructuring. He has also completed a number of complex and sensitive investigations. In addition, Andy has expertise in mentoring senior colleagues, people matters and is a part-time lecturer at the University of Gloucestershire. Colin Small (SID) A qualified Accountant, Colin worked in the private sector until joining the Severn Trent Water Authority and then the Housing Association sector in 1979. Colin has held a number of senior finance roles in the Housing sector including Finance Director/Company Secretary at Touchstone/Keynote (now Midland Heart) and at Festival Housing Group (now Fortis Living). Since 2008 Colin has provided consultancy services and board member services to a number of Housing providers. His current portfolio includes Senior Independent Director and Chair of Remuneration and Nomination Committee of a Birmingham based Housing Association, Group Board member and Chair of the Group Audit and Assurance Committee of a Kidderminster based Housing Association, and Financial Advisor to two other West Midlands Associations. Colin was previously Chair of the Social Housing Pension Scheme from 2008 to 2018 providing a pension service to over 500 housing employers and managing an investment base in excess of £4bn. He has also previously served as a Board member on three other Housing Associations.
Trident Housing Association Limited and its subsidiaries
Page | 11 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Principal Activities, Governance and Legal Structure (continued) Colin has provided training services to the Housing sector and regularly contributed to housing and pension events and various publications. John Morris (Chief Executive Officer) John is Group Chief Executive of Trident Group, which he joined in January 2004. John is committed to achieving his vision with Trident Group of creating a diverse, modern, social business, based on three pillars of activity – Housing, Care and Support and Social Investment. Katie Kershaw Katie is an urban design and heritage consultant with experience in the Midlands and across the country. She works on behalf of public and private sector clients with a particular focus on housing. Katie is a trustee director of Birmingham Conservation Trust, a member of Birmingham Civic Society‟s planning committee and an associate lecturer on the University of Birmingham‟s planning course, where she delivers lectures on place making. Nathan Talbott Nathan is an associate solicitor, specialising in commercial litigation and was co-opted to the Group Board of Trident in December 2015. He is a member of The Association of Corporate Governance Practitioners and holds a degree in Law. He is an ex professional footballer, and continues to work with the PFA and also has worked with London 2012 Olympic legal panel. Rosemarie Anderson Rosemarie is an experienced housing professional, working at a senior level for over 30 years, including 16 years as Chief Executive of Rockingham Forest Housing. Under Rosemarie‟s leadership Rockingham Forest became one of the top performing associations in England. She is actively involved in the National Housing Federation and Chartered Institute of Housing and has served on the Lord Chancellor‟s Advisory Committee for the appointment of Magistrates, as a Parish Councillor and as a school governor. Brian Carr Brian has been Chief Executive of Birmingham Voluntary Service Council (BVSC) since 2005. He joined the organisation after training as a personnel manager with Marks and Spencer plc, and time spent setting up and leading a Legal Aid service as managing director of a local Citizens Advice Bureau. His current role involves strategically leading BVSC in the full range of its activities, which focus on providing advocacy and development support to charities, community groups, and volunteers, and supporting the public and private sectors to better engage with the local voluntary sector. A past Chair of Healthwatch Birmingham and Birmingham Race Action Partnership, Brian is currently Chair of the Birmingham Changing Futures Together Partnership, a Lottery-funded initiative to create positive systems change in services which support people with multiple complex needs. He is currently a partner governor of Birmingham Community Healthcare NHS Trust and a Non-Executive Director of Birmingham Children‟s Trust. Brian is the author of two books, including the Amazon bestselling career guide, How to Find Your Vital Vocation. Yvonne Leishman Yvonne is an experienced housing professional who has worked for over 30 years at a senior level in local authorities and housing associations in Yorkshire and the West Midlands. She has over her career developed expertise in housing management, the delivery of care and support services, and in the development of new homes. In addition to her Trident role Yvonne is also a board member on a Gloucestershire Housing Association. She was President of the Chartered Institute of Housing, and has served on a number of charitable and professional boards. She was awarded the OBE in 2005 for services to housing.
Trident Housing Association Limited and its subsidiaries
Page | 12 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Principal Activities, Governance and Legal Structure (continued) Andrew Cooke (Group Finance Director) Andrew, Chartered Institute of Management Accountants joined Trident Group in October 2016 and is the Group Finance Director. Andrew has 20 plus years experience in diverse sectors; warehousing & logistics, manufacturing, training and public health. His key focus is assurance, reporting, strategic development and promoting a business‟s partnering relationship with internal and external stakeholders. Andrew serves as a Non-Executive Director for a west-Midlands based housing association. Simon Hatchman Simon has worked in the social housing sector since the mid 1990s. His career has included spells at several large housing associations, and he has also worked as a regulator and lender to the sector. Simon is currently Finance Director at PA Housing based in Leicester. In his spare time Simon acts as a parent governor at a small village primary school, where he chairs the finance committee.
Business and Financial Review The Group Board are pleased to report a surplus from normal operational activities of £2,520k (2018:
£2,589k). The achievement of the year end surplus is as a result of good cost control, delivering on its VFM
target and mitigating risks as part of its risk management framework.
Trident Group has benefited from low interest rates due to the quantum of debt weighted towards variable
based loans. During the year Trident Group fixed £20,000k of LIBOR based loans to mitigate the risk of
increasing interest rates as a consequence of Brexit uncertainty.
The Group‟s liquidity remains strong; this is forecasted to continue within its long term plan. The Group
Board revisited its risk appetite during the period, a key focus being the level of liquidity the organisation
holds, it has been agreed that a minimum level of £6,000k cash is held during the 2019/20 plan enhancing
its risk mitigation factors.
At the point of signing this report the Group has a £20,000k revolving credit facility (RCF) in place, the
amount drawn against this facility is £11,848k with a further £8,152k charged and immediately available.
The Group Board have not planned to utilise this facility during the 2019/20 campaign however wish to
retain it in order to enhance its financial resilience.
Trident Group remains within the Matrix partnership having completed 61 units at Wrockwardine Wood, the
Group is revisiting its Treasury Strategy in order to drive its development going forward.
During the period 2018/19 Trident Group had its grading reconfirmed at V1, a grading that provided the
regulator with sufficient assurance that it had met the viability requirements of the Standard. The Group has
been able to demonstrate that it has a strong financial profile, built on robust and prudent assumptions,
good headroom within the financial covenants and appropriate levels of liquidity. The level of financial risk
being taken on by Trident Group will not be considered to be unreasonable and the regulator has assurance
that the crystallisation of the identified risk can be mitigated successfully in most circumstances.
The Group is financially compliant in respect of funder‟s covenants having significant headroom built within
the Group Board risk appetite early warning indicators. All entities within the Group have strong cash
surpluses compared to their peers and each organisation within the Group can operate independently of
one another.
Effects of material estimates and judgement:-
In preparing these financial statements, the key judgements and estimates have been made in respect of
the following:
Trident Housing Association Limited and its subsidiaries
Page | 13 Report and financial statements for the year ended 31 March 2019
Impairment of tangible assets
A key judgement has been made in respect of whether there are indicators of impairment of the Group‟s
tangible assets. Factors taken into consideration in reaching such a decision include the economic viability
and expected future performance of the assets and where it is a component of larger cash generating unit,
the viability and expected future performance of that unit.
The Association obtained a valuation from Nationwide in February 2019 for their charged stock that shows a
EUV (“Existing Use Value”) of £81.9m and an MVT (“Market Value subject To Tenancies”) of £111.3m.
Barclays charged stock was also valued in November 2018 reflecting a EUV of £13.3m and an MVT of
£15.0m. In addition St Teresa‟s Court had been valued in March 2017 at a EUV of £3.1m and an MVT of
£3.3m. As part of the charging exercise with Barclays, Wrockwardine Wood was also valued in February
2019 generating a EUV of £5.2m and an MVT of £6.2m.
We have considered the following impairment indicators and concluded that no impairment is required:-
Long term voids – there are 21 (10 in 2017/18) long term voids, which represent an insignificant
proportion of the total stock.
Obsolescence – there has been no unexpected decline in asset values.
There has been no major contamination.
There are no changes in Government policy that we consider would lead to impairment.
Trident Group is fully compliant with fire safety and none of its properties have issues in respect to
cladding.
Trident Housing Association Limited and its subsidiaries
Page | 14 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Business and Financial Review (continued)
2019 2018 2017 2016 2015 Consolidated Statement of Comprehensive Income (£000) Income
- Housing - Care and support - Other activities
Total Income
17,594 13,397 2,272
33,263
17,133 13,455 2,080
32,668
17,119 13,268 2,243
32,530
17,692 13,539 1,900
33,131
17.543 13,352 2,217
33,112
Operating Surplus 5,223 5,300 5,285 4,908 3,852 Surplus for the year transferred to reserves before pension scheme closure costs 2,520 2,589 2,267 1,448 1,216 Pension scheme closure costs - - - (69) (660) ________ ________ ________ ________ ________ Net surplus / (deficit) 2,520 2,589 2,267 1,379 556 ________ ________ ________ ________ ________
Statement of Financial Position (£000)
Housing Properties, net of depreciation 154,223 153,105 149,250 151,441 151,415 ________ ________ ________ ________ ________ 154,223 153,105 149,250 151,441 151,415 Other fixed assets Investment properties
3,324 1,380
3,236 1,330
3,383 1,320
3,645 1,230
4,128 1,230
________ ________ ________ ________ ________ 158,927 157,671 153,953 156,316 156,773 Net current assets 870 1,672 2,171 1,178 702 ________ ________ ________ ________ ________
Total assets less current liabilities 159,797 159,343 156,124 157,494 157,475 Creditors:amounts falling due after more than one year Provision for liabilities and charges
(135,962)
- ________
(138,007)
(21) ________
(137,398)
- ________
(141,035)
-
________
(142,395)
- _______
23,835
________
21,315
________
18,726 ________
16,459 ________
15,080 ________
Revaluation Reserve 1,114 1,114 1,114 1,114 1,114 Revenue Reserves 22,721 20,201 17,612 15,345 13,966 ________ ________ ________ ________ ________
23,835 21,315 18,726 16,459 15,080 ________ ________ ________ ________ ________
Housing properties at year end: In management 3,386 3,347 3,349 3,354 3,355 In development 0 48 63 4 22 Total 3,386 3,395 3,412 3,358 3,377
Statistics Operating surplus as % of turnover 15.7% 16.2% 16.2% 14.8% 11.6% Surplus transferred to reserves as % turnover (pre exceptional item) 7.6% 7.9% 6.9% 4.4% 3.7% Gearing (Debt per unit) Nationwide Barclays
£25,917 £26,294
£26,412 £26,916
£26,469 £27,017
£28,248 £28,629
£31,446 £29,247
Trident Housing Association Limited and its subsidiaries
Page | 15 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Objectives and Strategy
The Group‟s overriding strategy is set out in the Strategic Plan published in 2017 entitled “A Beacon of Hope
in an Age of Austerity” and takes the Group through to 2022. This ambitious plan provides details of how we
plan to develop our service offer through our ambition to be one of the country‟s major social business
groups. The plan, built on the achievements of the last five years, takes the Group forward in a step change,
year-on-year, combining social purpose and business considerations. The corporate ambitions can be
summarised as follows. To be:
acknowledged as an outstanding Social Business Group with an associated high profile and
reputation;
recognised as an excellent service provider that places involvement of people, communities and
stakeholders at the core of its approach; and
acknowledged as a successful, sustainable and environmentally friendly social group.
Within that plan, the core strengths of the Group “the three pillars” are delivered through a focus on:
People: Offering high quality services to all our residents, putting our customer first and ensuring that staff are
motivated and given continued support through effective learning and development opportunities and
career development.
Property: Investing in our properties and the environment to ensure that homes are well maintained, safe and
secure and that the surrounding environment is a good place to live.
Finance: Ensuring that the Group makes best use of its resources for residents and that a solid financial platform
is in place for future investment in homes for growth and development of services.
Trident Housing Association Limited and its subsidiaries
Page | 16 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Achievements During 2018/19 Trident Group has performed well against its Strategic Plan, exceeding the net surplus
targets, ensuring cash is ahead of plan and performing; with considerable headroom in comparison to
lender covenants, at the same time fulfilling its commitment to providing value for money, affordable homes
and development of new housing units. Additional successes are continued within this report.
Registered Care -
Trident Reach manages 12 Registered Care homes (10 in Birmingham and 2 in Shropshire), offering 24
hour residential care and supports to adults with learning disabilities and associated needs. The services
are regulated by the Care Quality Commission (CQC) and with Trident Reach operating robust internal audit
and quality assurance processes. In the last twelve months there have been nine inspections across Trident
Reach‟s registered care services, all homes currently have an overall rating of „Good‟ in their CQC
inspection reports. The utilisation levels have improved in 2018/19 with vacancies being filled in a timely
manner and with higher level care packages. One care home has secured Continuing Healthcare funding to
better meet a customer‟s increased care requirements. This is also in line with objectives in the
department‟s Strategic Plan to diversify income streams.
In April 2018 Trident Reach‟s Birmingham Registered Care Services were successfully awarded new
contracts to be providers on the new Care Framework for the city. Many of the care homes have received
and completed the new Provider Quality Assurance Statement (PQAS) which is an annual self-assessment
tool cross referenced with the new Care Service Standards. As part of the framework care homes will
receive at least one quality monitoring visit a year from Birmingham City Council or CQC. Currently five care
homes have received their quality monitoring visit from their Commissioning Officer and all five have been
awarded a Silver rating.
Shropshire Services -
All services across the region have maintained a high level of service delivery.
Since successfully being selected as the new provider for Elms House, an NHS service, on 28 February
2017 the service has continued to achieve the required outcomes and has received a second contract
extension. A new Registered Manager has been recruited and continues to develop this mental health
rehabilitation and recovery service.
The Sustain consortium in which Trident Reach provide support for adults with Autism, Asperger‟s, and
Learning Disabilities has previously been funded through Supporting People (SP). As of 1 April 2019 SP
funding for community based services ended. This has not resulted in any loss of revenue. Individuals have
all been reassessed by social services and in some cases their funding and support package have
increased. A new contract agreement for Support and Care in the Community with Shropshire Council has
been received.
The Specialist Mental Health Supported Housing and Crisis house continue to run at full capacity with
waiting lists.
Community Services Department -
Our Coventry service continues to deliver community based preventative support for people with learning disabilities and through this we enjoy a strengthened position in the market as the sole provider of learning disability housing related support in Coventry. We actively participate in quarterly contract review meetings with commissioners and the tools and processes we have introduced to capture outcomes and Key Performance Indicators have been well received and cited by commissioners as good practice to other health and social care providers. In 2019 Birmingham Domiciliary Care services were awarded a three year Home Support contract and placed on the Local Authority‟s provider framework. The new contract has resulted in an increase in the hourly rate for home care provision which will reflect positively on service budgets. The service has maintained an overall rating of „good‟ following its last CQC inspection.
Trident Housing Association Limited and its subsidiaries
Page | 17 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Achievements (continued) Murray Grey Mews continues to provide intensive support to all individuals and Trident Housing provides the Housing Management of two purpose built shared house facilities. The Payment By Outcome model has been reviewed and a number of discretionary payments were received in line with progression associated with mental health recovery as captured in support plan and risk assessment documentation. There is a focus on nominations, referrals and move on as the service enters the second year in operation.
The Birmingham Supporting People Service contracts for both the Learning Disability and Mental Health
have achieved their required targets in terms of utilisation and outcomes in line with contract requirements.
The key performance indicators place these contracts in a favourable position with commissioners with clear
and demonstrable outcomes every quarter.
We continue to increase referrals into the Dudley and Wolverhampton Domiciliary Care both through
referrals from the Local Authorities and also from securing private packages of care and support. The
services have undergone rigorous Local Authority audits throughout 2018 and has met all identified actions
and has also received a CQC inspections and received the overall rating of „good‟.
The contract for the Sandwell Short Breaks service ceased in 2018, the contract for the Wolverhampton
Short Breaks service has seen a gradual increase in hours over the period and there are opportunities to
further increase in line with recruitment outcomes. We are in communication with commissioners about
additional business opportunities for this service.
Sandwell Services –
In 2018, the Sandwell Vulnerable Housing Person Services Supporting People Contracts went out for tender
and we were successful in retaining existing services at an increased contract value. The new Sandwell
MBC contracts were issued in November 2018 (the Meeting House, Wednesbury and Brasshouse Lane,
Smethwick), providing 36 units of accommodation and support to vulnerable single adults faced with
homelessness and associated needs that may include alcohol and substance misuse, mental health,
offending and complex and chaotic behaviour. We are working positively with the staff team,
commissioners, providers and stakeholders to embed the requirements of the new contract.
Birmingham Support Services –
We deliver a total of 14 Supporting People contracts across the city, commissioned by Birmingham City
Council (BCC), supporting some of the most vulnerable citizens through a range of services. Our
Homeless Support Services, both accommodation and floating support, continue to be committed to
tackling homelessness and reducing rough sleeping. We work with BCC and contributed to their
Homelessness Strategy, attending the strategy launch and continue to be involved in the Homelessness
Pathway Board.
We have responded flexibly to re-model parts of our homeless accommodation services in line with BCC‟s
Rough Sleeper Initiative funding and opened our Cold Weather Provision earlier with the addition of staffing
to support and encourage engagement into mainstream services. During the six months the Cold Weather
Provision was in operation over 1500 rough sleepers were provided with emergency accommodation.
Subsequently the submission for a summer night shelter has been accepted and a mobilisation plan is in
development. We now offer 7 units of “light-touch” support accommodation within our hostel again to
support with the transition from rough sleeping on the streets to accessing support and accommodation. The
addition of accommodation offered to homeless individuals with pets or who are couples has also meant we
have supported more people off the street into accommodation and addressed some of the barriers
previously preventing access.
Our Hospital Patient Pathway and Skills Hub continue to be delivered and enables us to better support
individuals threatened with or actually homeless secure accommodation and skills to bring stability for their
long term future. We liaise with key partners to ensure that this service is timely and responsive and
accessible to those in need.
Trident Housing Association Limited and its subsidiaries
Page | 18 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Achievements (continued)
Our Youth Promise Plus service that provided innovative support to vulnerable and disadvantaged young
people to access to education, training and employment opportunities came to an end in Summer 2018.
However we were successful in winning a similar contract from March 2019 called PURE (Putting Urban
Residents into Education/Employment) it is aimed at customers aged 29+ across the most deprived parts of
central Birmingham and we have won the homeless element of the project to bring customers out of
homelessness and into education and work.
Domestic Abuse Support Services provide refuge accommodation and floating support to women and
children and work towards raising awareness of Domestic Abuse. Our specialist Male Floating Support
Service is the only one commissioned by the City and has continued to see referrals into the service giving
specialist support to men who are victims of Domestic Abuse. We have forged positive working relationships
with the local police, specialist Family Law organisations and training providers which has added value to
the service provision across all contracts.
Derbyshire Support Services -
Our Extra-Care service at Oakland Village is a recognised and established provider of accommodation and
support to older people within South Derbyshire. We have worked effectively this year to develop two
separate entities being support and commercial within the service. The support element raises funds from
commissioned funding whilst the commercial element brings in funds/profits from the activities of the
service. This models infused the staff team and they have come up with some good profitable ventures.
This also means the menu of activities for people living at Oakland Village and also in the community has
grown significantly.
Young People Leaving Care services in Derbyshire came to an end in Summer 2018 and we exited the
contract with Derbyshire County Council.
Derbyshire Domestic Abuse Services (DA). The service has embedded a number of specialist funded
posts which include art therapist, specialist mental health worker, and Violence Against Women and Girls
worker. The contract has been extended for an additional year, to allow the local authority to develop new
initiatives in DA services. We continue to be the consortium lead for the provision of DA services across the
county and are a recognised service within the area. Our refuge and dispersed accommodation as well as
our floating support services are in high demand and have held waiting lists for the whole of the former year.
Housing Services
The housing service reorganised in 2017/18 and we continue to deliver the service through the Locality
Officer model. The creation of a new Executive Lead who oversees both Care and Support (Reach) and
Housing has meant that relationships between the teams has improved and there is a shared understanding
and commitment to developing and maintaining the services that we provide to tenants.
Locality Working
The change from specialist teams to a generic team of 10 Locality Officers has enabled officers to get closer
to their tenants and concentrate on building relationships with them. The focus of locality working is to build
sustainable tenancies and of the 660 new lets during the financial year, only 11 tenants ended their
tenancies. We carried out 638 Health and Wellbeing Checks. This is a new initiative for Trident and many
tenants have not had a visit from an officer for some time, apart from a gas service or a repairs visit. The
wellbeing checks are providing support for tenants as well as giving us the opportunity to check on the
property condition, identify any breaches of tenancy and so on. Following the visit, where required referrals
are made to debt advice services and employment agencies, safeguarding concerns are reported and
support has been put in place from Reach services, such as domestic abuse and domiciliary care. We
continue to work successfully with West Midlands Fire Service who work with us in carrying out safety and
wellbeing visits, taking a joint approach to tackling hoarding, overcrowding and mental health issues.
Trident Housing Association Limited and its subsidiaries
Page | 19 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Achievements (continued)
We currently work with 14 Local Authorities and have been engaging with them on their work with the
Homeless Reduction Act which places a duty on LAs to prevent homelessness.
Arrears Management
This continues to be a challenge for the team. Universal Credit and the administration of Housing Benefit
has caused arrears to escalate in some cases. The Group appointed an officer to work specifically in giving
support to residents on Universal Credit. This specialist role has helped with increasing knowledge for staff
and liaising with Locality Officers to ensure the proactive management of those tenants who are in receipt of
the benefit. The relocation of the Finance Department‟s Revenue Recognition team who provide
administrative support has helped both teams to better understand their roles. The team also work closely
with the Legal team who manage the process when court action is required. There has been extensive
training on the CRM system which provides the tools to manage the arrears process and there has been
work on ensuring that the performance reports are fit for purpose and allow for effective monitoring and
targeting of the team. The Locality Officers continue to give focus on arrears management improvement and
support to residents and the Intensive Housing Management Officers replicate this and are responsible for
the arrears performance on supported schemes.
Community Safety
The Community Safety Team has faced its own challenges and has engaged in some effective partnership
working with the police, social services and other agencies to address some of the wider issues that affect
our residents and the neighbourhoods where they live. We have tackled rough sleepers on Central Site by
making referrals to Washington Court or to other homeless organisations such as SIFA or Streetlink. Our
officers work innovatively and tirelessly to help and support those residents who are left behind through ever
decreasing specialist support from statutory and voluntary agencies, particularly in the area of mental
health. We have signed up to the “Make a Stand” pledge, an initiative developed by the Chartered Institute
of Housing in partnership with Women‟s Aid and The Domestic Abuse Housing Alliance. The aim is for
housing organisations to commit to support people experiencing domestic abuse.
Allocations
We have made considerable improvements to our void performance over the year due to the hard work of
staff and ensuring that everyone has an awareness of the importance of minimising the time that properties
are kept empty. We have worked with local authorities to ensure that the nominations processes are
correctly adhered to. We have ensured that opportunities for mutual exchanges are maximised by promoting
the Homeswapper site to tenants and providing support where necessary. We had 10 successful exchanges
in the financial year which is above average for an organisation of our size. As part of our commitment to
sustaining tenancies, we are engaging with initiatives that work with applicants to help them to be tenant
ready. We are working in partnership with Crisis and running workshops in Trident House on Understanding
Tenancies; Managing your Money and Tenant Responsibilities.
We have successfully let all the 61 properties in Wrockwardine Wood in Telford with no void loss and as a
result of a successful relationship with Telford and Wrekin Council have been invited to participate in their
Housing Partnerships meetings which aims to reduce homelessness in the borough and collectively manage
the issue of housing supply.
Intensive Housing Management
With the reduction in Supporting People funding, we have appointed Intensive Housing Management
Officers who work in our supported schemes. Their focus is on voids and arrears and ensures that we have
a co-ordinated approach between those recovering arrears and those supporting tenants. We have further
developed this model this year to ensure some of our most vulnerable customers continue to get a level of
service from the organisation. Our specialist women‟s refuge for Muslim women lost funding in summer
2018 but we have managed to keep the service running using the Intensive Housing Management Model
and by bringing in support from our Domestic Abuse floating support services in Birmingham.
Trident Housing Association Limited and its subsidiaries
Page | 20 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Achievements (continued)
Resident Engagement
The Housing Green Paper has provided us with opportunities to refocus our resident engagement approach
and we are working with the National Housing Federation on its Together with Tenants programme. We will
commit to the Charter which is being developed but will also articulate our own Offer to Tenants. We
continue to engage positively with residents on a scheme-based level and carry out estate walkabouts,
organise Skip Days and facilitate Breakfast Clubs at Trident House and are extending this to other areas,
such as Burberry Court in Tipton. Our Resident and Customer Engagement Strategy will enable us to frame
our Offer to Tenants under the headings of Governance, Involvement and Communication.
People and Resources
The People and Resources function is central to the Group‟s infrastructure that supports the day-to-day
delivery of services to our clients.
Equality, Diversity and Inclusion
Having been recognised for our commitment to Equality, Diversity and Inclusion (EDI) in the National Centre
Diversity‟s Top 100 Index 2019 (number 67) as a Top 100 company to work for, for four consecutive years –
the Group continues to review its approach to EDI to demonstrate its commitment to EDI.
In recognition of this commitment, the Group is a „Disability Confident Committed Employer‟ for a second
year (up to March 2020) since signing up to the Disability Confident Scheme, which replaced the
Department of Works and Pension (DWP), Two Ticks accreditation. Being Disability Confident is a unique
opportunity for the Group to demonstrate its approach to recruitment and retention of disabled people and
those with health conditions, making the most of the talents that these people can bring to the workplace.
Human Resources
The organisation continues to be accredited as an Investors in People (IIP) organisation at the Standard
award level, having continued to demonstrate the requirements of the IIP framework. The Group‟s
achievement of the Standard award once again reflects the commitment and acknowledges the effort of
everyone that works for the Group.
The IIP state themselves that the Standard award is a very challenging one for organisations to meet, and
we have consistently met the Standard award for two consecutive years. The HR team continues to work
with staff, volunteers and apprentices across the organisation to provide dedicated and responsive support
for the development of skills and knowledge to continue to contribute effectively to the Group‟s strategic
vision and direction.
Learning and Development
In line with the Group‟s strategic vision and direction, the Group continues to deliver mandatory and
developmental training to employees and managers. Management training on HR topics has been rolled out
in 2018, and will continue throughout 2019 and 2020. The purpose is to equip managers across the Group,
with the necessary skills, knowledge and confidence to manage day-to-day employee relations within their
teams.
The Group also continues to utilise the technology available, by increasing the e-learning training courses
on offer.
Gender Pay Reporting
The Group completed its second review of the Gender Pay Gap Reporting as required by law. The report
which provided a snapshot of participating organisations as of 5 April 2018, showed that the Group‟s figure
of 15.2% was below the Office of National Statistics figure of 17.9%.
Trident Housing Association Limited and its subsidiaries
Page | 21 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Achievements (continued)
The Group is committed to reducing the pay gap and will continually review pay and pay arrangements in
line with business transformation, market rates, sector benchmarking and legislative changes.
ICT The past year has seen ICT concentrate on Cyber Security to be compliant with GDPR. This has involved
upgrading to the latest network infrastructure hardware, and engaging a new network security provider to
monitor and enforce resilience. As part of this project, the Group also tested our network security utilising a
third party tasked with penetrating our network and identifying any areas of concern, which were then
addressed. A regular offsite backup of our data was also commissioned.
ICT has also obtained the government backed, industry supported, Cyber Security Essentials Certification -
a pre-requisite to conducting business with government organisations.
Aiding the Group‟s approach to digitalisation, ICT also during the period moved the Group‟s subsidiary,
Trident Reach, to the latest Virtual Desktop Infrastructure to bring them in line with Trident Housing
Association, and to transfer all local data for storage within the Group‟s datacentre. Also as part of ICT‟s
remit to „champion Digital Inclusion for the excluded‟, 14 Reach sites had Wi-Fi installed and tablets
provided, to enable residents to engage with the wider world.
ICT also commissioned a Stock Conditioning Module to be created to house all of the data collected during
the Stock Conditioning programme by the Group‟s Technical Service‟s team.
Trident Housing Association Limited and its subsidiaries
Page | 22 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Value for Money (VFM)
Overview
Value for Money is integral to Trident Group‟s (Group) strategic approach; this is both explicit in our stated
objectives and also implicit in the targets that drive improvement in the efficiency and effectiveness of our
services.
The Group operates under the mantra „Every Pound Counts‟. Many of our residents and customers have
complex needs and vulnerabilities, meaning that due to the additional investment this requires in services
we are unlikely to be the cheapest when compared with our peers. We therefore aim to derive the most
value out of every pound spent, balancing costs against the diverse requirements of our customer-base,
whilst still aiming for at least sector median in terms of cost-performance.
The Group‟s aim is to be “an employer of choice”, achieving this by; understanding its customers better in
order to provide targeted services, committed to delivering an effective service which represents best value
and aspires to create steady, sustainable growth both in terms of property numbers and contract income.
The strategic aims and objectives, as well as the key performance indicators (KPIs) and business finances
that drive and support attainment of them, are reconfirmed within the Group‟s Strategic Plan.
The Strategic Plan covers a five year period starting in 2017/18 with a Business Plan refreshed annually,
and although our aims and objectives remain consistent through this period our activities and targets are
fully reviewed and revised annually to ensure we are driving performance improvement at the right pace.
Governance: How We Manage and Monitor VFM
Our strategic objectives are set and agreed by the Group Board, as are the Group‟s performance targets.
The targets are reviewed and revised annually, based on analysis of the organisation‟s performance, as well
as comparison with peers. We continually benchmark against other organisations with similar objectives.
All strategic objectives are monitored through a set of linked KPIs reported to Senior Management Team on
a monthly basis and to the Group Board on a quarterly basis. In addition to this the management accounts,
supported by a clear finance report analysing the accounts, are reported on the same frequency analysing
any variance from agreed cost-improvement targets.
As part of the budgetary approval process with the Group Board, cost improvement targets are discussed,
agreed and then transacted within the budget statements, a cost improvement log is then created which can
be monitored throughout the period through the management accounts and key performance indicators, a
set of indicators that is also linked to the Strategic Risk Register.
As part of the organisations stride to VFM we continually review our supply base, retendering through a
competitive process to ensure the costs of services that are being delivered to the Group are minimised
whilst maintaining the quality to our stakeholders. The Group undertakes a review of its suppliers through its
internal controls assurance, ensuring that all suppliers are engaged in line with the Standing Financial
Instructions Policy; a policy which is approved by the Group Board.
The Group has recently had approval for a dedicated Procurement role to sit firmly within its Senior
Management Team structure, this post will further enhance the savings and through a targeted approach to
achieve our VFM targets.
The information and evidence that is present within the Group allows us to assess how we are achieving
VFM against the three aspects of economy, efficiency and effectiveness; definitions aligned to those used
by the Regulator of Social Housing within its Value For Money Code of Practice publication.
Trident Housing Association Limited and its subsidiaries
Page | 23 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Value for Money (VFM) (continued)
Governance: Who Is Responsible for VFM
VFM is a key driver within the organisation with dedicated accountability and responsibility, all staff have a
responsibility to utilise the asset base to its optimal efficiency, the following tables demonstrates the level of
functionality in achieving the VFM plan:
VFM owners
Function Action
Group Board Overall responsibility for achieving VFM
Audit & Assurance Committee To challenge VFM assumptions
Chief Executive and Group Finance Director
Champion VFM within Senior Management Team
Senior Management Team Operational responsibility for delivery of VFM
Group Performance Business Partner To support staff with new VFM initiatives
All staff Ongoing drive to VFM
All staff / Board members Review performance against VFM targets
Our VFM Performance in 2018/19 As stated the Group monitors performance through Key Performance Indicators, with targets set to achieve
or exceed sector median performance where possible; a number of these KPIs relate directly to VFM and
are set out below.
In addition to monitoring KPIs the Group participates in wider sector benchmarking through Housemark,
undertaking an annual appraisal of costs and performance, the benchmarking is compared to the Group‟s
peers and the sector.
The seven metrics in the tables are those which are examined by the Regulator of Social Housing as part of
its approach to regulation of VFM. In addition other operational metrics are reviewed by the Senior
Management Team and Group Board.
Value for Money Performance Metrics
Group Performance
No. VFM Performance Metrics 2018/19
performance 2017/18
performance 2019/20 Plan
1 Reinvestment 2.60% 3.67% 0.69%
2a New Supply Delivered (social housing) 1.63% 0.45% 0.00%
2b New Supply Delivered (non-social housing) 0.00% 0.00% 0.00%
3 Gearing 47.61% 40.61% 38.11%
4 Interest Cover - EBITDA (MRI) 205.07% 240.30% 208.31%
5 Headline Social Housing Cost £4,890 £4,630 £4,558
6a Operating Margin (social housing) 25.96% 25.25% 29.40%
6b Operating Margin (overall) 15.70% 16.22% 18.65%
7 Return on Capital Employed (ROCE) 3.44% 3.41% 3.91%
Trident Housing Association Limited and its subsidiaries
Page | 24 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Value for Money (VFM) (continued)
Housing Association only 2018 benchmark (Housemark)
No. VFM Performance
Metrics 2018/19
performance 2017/18
performance Sector Upper
quartile Sector median
Sector lower quartile
1 Reinvestment 2.60% 3.67% 8.43% 6.08% 3.71%
2a New Supply Delivered (social
housing) 1.63% 0.45% 2.34% 1.10% 0.35%
3 Gearing 48.61% 40.94% 28.78% 39.40% 50.55%
4 Interest Cover - EBITDA (MRI)
196.75% 222.24% 280.67% 203.50% 156.93%
5 Headline Social Housing Cost
£4,700 £4,530 £2,983 £3,311 £4,083
6a Operating margin (social housing)
26.53% 26.20% 34.00% 28.40% 21.95%
6b Operating margin (overall)
26.67% 26.55% 34.00% 28.40% 21.95%
7 Return on Capital Employed (ROCE)
3.38% 3.19% 5.16% 4.00% 2.97%
Housing Association only 2018 benchmark (Housemark)
No. VFM Performance
Metrics 2018/19
performance 2017/18
performance Peer* Group
Upper quartile Peer* Group
median Peer* Group
lower quartile
1 Reinvestment 2.60% 3.67% 9.00% 7.02% 4.11%
2a New Supply Delivered (social
housing) 1.63% 0.45% 2.54% 1.24% 0.89%
3 Gearing 48.61% 40.94% 32.15% 42.53% 56.34%
4 Interest Cover - EBITDA (MRI)
196.75% 222.24% 256.10% 211.20% 189.12%
5 Headline Social Housing Cost
£4,700 £4,530 £2,944 £3,387 £3,674
6a Operating margin (social housing)
26.53% 26.20% 32.57% 25.60% 21.87%
6b Operating margin (overall)
26.67% 26.55% 32.57% 25.60% 21.87%
7 Return on capital employed (ROCE)
3.38% 3.19% 5.43% 3.95% 3.37%
Costs Per Unit
Social housing CPU (£k)
Management CPU (£k)
Service charge CPU
(£k)
Maintenance CPU (£k)
Major repairs
CPU (£k)
Other social housing
costs CPU (£k)
Trident Group
2019/20 Plan 4.56 0.68 1.31 1.11 0.46 0.99
2018/19 4.89 0.73 1.41 1.16 0.53 1.06
2017/18 4.63 0.76 1.39 1.02 0.34 1.13
2016/17 4.71 0.75 1.38 1.02 0.45 1.10
Sector
Sector Upper Quartile
2.98 0.82 0.19 0.78 0.53 0.07
Sector Median 3.31 1.01 0.33 0.92 0.73 0.19
Sector Lower Quartile
4.08 1.23 0.55 1.12 0.98 0.43
Trident Housing Association Limited and its subsidiaries
Page | 25 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Value for Money (VFM) (continued)
Social housing CPU (£k)
Management CPU (£k)
Service charge CPU
(£k)
Maintenance CPU (£k)
Major repairs
CPU (£k)
Other social housing
costs CPU (£k)
Trident Group
2019/20 Plan 4.56 0.68 1.31 1.11 0.46 0.99
2018/19 4.89 0.73 1.41 1.16 0.53 1.06
2017/18 4.63 0.76 1.39 1.02 0.34 1.13
2016/17 4.71 0.75 1.38 1.02 0.45 1.10
Peer Group
Peer* Upper Quartile
2.94 0.83 0.20 0.78 0.53 0.07
Peer* Median 3.39 0.94 0.26 0.86 0.71 0.01
Peer* Lower Quartile
3.67 1.20 0.57 1.15 0.84 0.81
*Peer group consists of 23 organisations ranging from 2,000 to 6,200 unit numbers
It is important to note the differences in key areas, for example operating margin (metric 6b), that are
accountable to our Group‟s commitment to providing care and support services integrated with our housing
services. Care and support contracts, primarily funded by Local Authorities, have significantly lower
operating margins and this affects our Group Performance. When viewed at Housing Association level
(metrics 6a and 6b) the Association performs close to sector median and above our peers‟ median.
These additional costs, attributable to the nature of our organisation, are evident in the Cost Per Unit (metric
5) regression. The Group carries a significantly higher than average level of cost within our service charges,
and our other social housing cost. The Group employs additional staff specifically for the housing
management of our supported schemes, and this, alongside costs created through flatted accommodation
(door entry systems, lifts, laundry) result in deviation from the sector in terms of cost. It is encouraging to
note that our indirect costs such as management cost per unit has shown a reduction on prior years and is
in the upper quartile compared to the sector and our peers.
Major repairs and maintenance cost per unit have increased in line with the additional investment into
existing stock in respect to fire safety, also as a result of a stock condition survey conducted by Savills
during the period, which brought forward component replacement costs, however over the 30 year business
plan expenditure remains aligned to the original assumptions.
The Group‟s development programme (metric 2a) is a cyclical one; in order to develop sustainably from a
financial and management perspective. The Group does not undertake significant development
programmes each year. During 2018/19 the Group completed its development at Wrockwardine Wood; a
development of 61 units in Telford, which as a percentage of stock owned has shown an increase in new
supply delivered on the prior year.
Other key metrics The Group operates a set of key performance indicators / early warning indicators as described earlier in
this report. Targets are set annually in line with the Group Board approved plan and monitored on a monthly
basis indicating direction of travel in performance. All metrics are RAG rated in line with the approved Group
Board risk appetite and linked back to the risk register.
Trident Housing Association Limited and its subsidiaries
Page | 26 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Value for Money (VFM) (continued)
The Strategic KPI‟s are as follows:
KPI Related Risks
RIDDOR Reportable incidents ● Health & Safety and Asset Compliance
Fire Risk assessments up to date ● Health & Safety and Asset Compliance
% stock Gas safety compliant ● Health & Safety and Asset Compliance
Wellbeing and home safety checks undertaken ● Health & Safety and Asset Compliance
● Asset Management
Current tenant arrears as % of rent charged● Cash
● Poor financial performance
Average re-let days ● Cash
● Poor financial performance
Rent collected as % of revenue due● Cash
● Poor financial performance
Void loss as % revenue due● Cash
● Poor financial performance
Operating Margin● Cash
● Poor financial performance
Agency staff spend● Cash
● Poor financial performance
New business income● Cash
● Poor financial performance
EBITDA MRI● Cash
● Poor financial performance
Internal VFM reduction target● Cash
● Poor financial performance
Data Protection Breaches ● Information technology and data management
ICO reportable ● Information technology and data management
Debt serviceability● Refinancing & Access to available funds
● Poor financial performance
Net debt per unit● Refinancing & Access to available funds
● Cash
Drawn loan balance● Refinancing & Access to available funds
●Brexit
Fixed debt % ● Refinancing & Access to available funds
Variable debt % ● Refinancing & Access to available funds
Cash at bank ● Refinancing & Access to available funds
Inflation rate ● BREXIT
Interest rate (LIBOR) ● BREXIT
% Of staff EU27 Nationals● BREXIT
● Staff and Board Member retention
Securitisation (Headroom) (£) ● BREXIT
Net debt per unit (Headroom) (£) ● BREXIT
Stock condition surveys undertaken● Asset Management
● Health & Safety and asset compliance
Average Performance on PBOs (SP Contracts)● Poor financial performance
● Cash
% of C&S contracts meeting contract utilisation● Poor financial performance
● Cash
Workforce stability factor ● Staff and Board Member retention
Staff turnover ● Staff and Board Member retention
% Contract to be reviewed within 6 months (Care & Support) ● Supported services and Accommodation
Number of units developed (Affordable rent) ● Development (No market sales)
Number of units developed
(Market rent)● Development (No market sales)
Trident Housing Association Limited and its subsidiaries
Page | 27 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Value for Money (VFM) (continued)
Benchmarking activities In addition to the sector and peer benchmarking work highlighted earlier in this report, the Group is a
member of the Matrix Partnership, a partnership that not only supports members in housing development
but also provides through regular meetings at Chief Executive and Group Finance Director level the sharing
of best practice. The aims of each Finance Director meeting are as follows to:
bring like minded senior people together across the sector;
share strategic and relevant operational performance information; in particular key metrics;
share best practice and consistency in reporting;
provide learning and access to experts within the sector;
deliver and exceed regulatory requirements; and
enhancing benchmarking and challenging one another‟s performance information.
The Finance Directors share this additional knowledge and benchmarking with their Group Board and
Senior Management Teams to put key variances into context.
Other VFM highlights During the year the Group has achieved its VFM savings target which was transacted within the 2018/19
budget as cash backed savings. A number of examples are below:
The retendering of the Group Insurance policy whilst increasing the liabilities cover, generating a
saving on a full year basis of £250k.
Reconfiguration of the Executive Management Team and the establishment of an Executive Lead
structure, generating savings of £140k.
Negotiation of software, hardware and telecommunication systems, generating a saving of £59k.
The full year effect of rental income from the completion of our development at Wrockwardine
Wood; Telford.
Maximisation of payment by outcome (PBO) and contract utilisation within the Birmingham City
Support Contracts.
Maintaining “Good” standard with the Care Quality Commission protecting future income.
Securing the PURE contract with Birmingham City Council; a contract that embeds the placing of
vulnerable urban residents into employment and training at a net margin in excess of the Golden
Rule.
The fixing of £20,000k of LIBOR based loans protecting against interest rate fluctuations and
avoiding cost increases.
Future VFM savings and initiatives
Retendering of grounds maintenance and planned maintenance services.
Reduction of re-let days improving rental income.
Dedicated focus on Universal Credits and the avoidance of increasing arrears.
Further budgeted investment in operational digitalisation; in particular within our homelessness
provision.
Recruitment of a dedicated Procurement role to review all suppliers.
The embedding of the Group Performance Business Partner in reviewing operational procedures
and policies in order to drive out inefficiencies.
Consolidation and reconfiguration of office accommodation.
A review of staff terms and conditions to ensure they are aligned to the employment market. Centralisation of agency approval plus the establishment of a staff bank.
Trident Housing Association Limited and its subsidiaries
Page | 28 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Risk Management Management of Risk remains a key priority for Trident reflecting the ongoing change in both our external and internal operating environments. Trident has a clear strategic approach to risk, including both programmed and reactive reviews, and this is documented in the Trident Risk Strategy. Risk is understood at all levels of the organisation, but is led by a very risk-aware Board. Over the reporting period Trident has reviewed its approach to Risk management. This includes the following:-
Reassessing the organisation‟s risk appetite at the Group Board Away Day November 2018.
Revising our Risk Management recording and monitoring practices, including a review of our Risk
registers taking into account three lines of assurance / defence.
Reviewing the relationship between strategic and operational risks in our Group.
The development of a clear framework for risk-based decision-making in the context of a group
structure.
We have continued to support our approach to risk management with a robust programme of stress testing. A complete stress testing exercise is formally programmed in a minimum of three times a year, firstly as part of the budget setting process, secondly as part of the Strategic Plan review, and thirdly, later in the year as part of the financial reforecasting, but is adjusted and re-run responsively to internal and external changes, both for current and perceived future events. Trident carefully examines its approach to both strategic and operational Risk in the short, medium and longer term, and our approach to risk review and management will continue to evolve to meet the needs of a changing environment. Trident‟s Strategic Risk Register is a living document, reviewed and updated on a monthly basis by the Senior Management Team and by the Group Board at least quarterly as a standing agenda item at each Group Board meeting; all identified risks are mapped to corresponding Key Performance Indicators giving both management and Board early indicators if risk and performance tolerances may be breached. The table on the following page summarises the principal risks identified and monitored on the Strategic Risk Register at the year end in descending order by residual risk.
Trident Housing Association Limited and its subsidiaries
Page | 29 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Strategic Risk Register
Sector Risk Profile 2018
& Risk Area
Risk Description Current considerations Controls and Assurance Current Mitigations 1st Line of Assurance 2nd
Line of Assurance 3rd Line of Assurance
Health & Safety – R.1
Health & Safety + Asset
Compaliance
Health & safety failures put at risk our
customers, service users, staff and the
general public. They could lead to regulatory
intervention and downgrading, prosecution,
loss of finance and damage to Trident and
wider sector.
- Grenfell Tower Fire
- Fitness for Habitation Act
- Hackitt report
- Annual Health & Safety Review.
- Regular Board reporting on Fire Programme
- Asset Management Strategy
KPIs:
- Fire Risk Assessments
- Gas Compliance
- Stock condition surveys complete
Enhanced Programmed Fire Risk
Assessment and action plan for
remedial work
- Internal KPI‟s
- Qualified Staff
- Risk appetite
- Policies & Procedures
- Risk monitoring
- Risk register
- Compliance & Board Training
- Resident engagement
- Internal audit program
- Board monitoring
- Board Training
- Co-regulation
- External Inspection
- Quality checks
- Stock condition survey
Data & Safety Monitoring
– R.6 Information
technology and data
management
"Our IT systems and information
management procedures must be sufficiently
robust to support delivery of our business
plan, to withstand any form of cyber attack,
and to ensure all information is managed
securely and in accordance with the new
GDPR requirements.
Any failure can lead to significant financial
losses and damage to reputation.
Data that is stored or reported on must be
entered correctly and reported to all staff
including Board members accurately and on
time"
- GDPR
- Data reporting to regulator
- Internal Audit
- Data Protection Policy
- Board reporting GDPR taskforce
- Budget including ring fenced spending on
GDPR related IT investment.
KPIs: Data breaches
Regulatory returns are uploaded to CGFirst
for members to review. The Group Finance
Director gives a confirmatory statement to
Group Board as part of the compliance
checklist that all returns have been submitted
accurately and on time.
Investment in electronic, auditable,
secure systemes for data retention and
use within THA. Primary customer
database us one which can be tailored
in-house to store relevant data.
Executive, Senior Management and
staff review of regulatory returns prior to
submission.
- Qualified Staff
- Robust systems
- Capital investment
- Internal monitoring
- Policies & Procedures
- Exec & SMT review
- Supplier agreements
- Risk monitoring
- Risk reguester
- Internal data officer
- GDPR checklist
- Group Board visibility
- Internal audit program
- ICO reporting
- External system testing
Reputational Risk – R.8
Staff and Board Member
Retention
Turnover of staff leads to increased costs
through the use of temporary and the
recruitment. Loss of key staff can lead to
issues in information retention, as well as
reputational damage.
New business in Birmingham –
competition for frontline workers
- Investors in People Award
- Stress testing
- Succession strategy for Board and Executive
KPIs:
- Staff turnover
- Workforce stability
- Staff engagement workshops
-Salary benchmarking & reviews
- Extensive staff benefits
- Reduction in use of agency
- Creation of internal bank of cover staff
- Use of IT system so support
information retention
- Succession planning for key roles
- Internal policies & procedures
- Staff communication portal
- Social media monitoring
- Workers council
- Internal staff training
- Investors in people award
- External staff qualification
Trident Housing Association Limited and its subsidiaries
Page | 30 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Strategic Risk Register (continued)
Sector Risk Profile 2018
& Risk Area
Risk Description Current considerations Controls and Assurance Current Mitigations 1st Line of Assurance 2nd
Line of Assurance 3rd Line of Assurance
Operation risk – existing
stock –R.5 Asset
Management
Failure to adequately invest in and manage
out stock and estates leads to deline in stock
condition, property values and failure to meet
compliance standards, as well as inability to
refinance to necessary level. Failure to
understand our assets leads to unexpected
costs incurred. Failure to meet statutory
requirements on condition or compliance
could lead to prosecution and loss of
reputation.
- Fitness for Habitation Act
- Decent Homes
- Carbon Emissions
Consumer Standards:
- Home Stanadards 2015
- Tenancy Standards 2015
- Neighbourhood and community
standard
-Tenant involvement and
Empowerment standard 2017
- Asset management strategy
- Stock coniditons
- Asset and liability register
- Budget
- Business Plan
KPIs:
- RIDDOR reportable incidents
- FRA up at date
- Gas compliance
- Stock condition surveys completed
Asset and liability register kept up to
date, stock condition and asset
appraisal tool used to develop a robust
asset management strategy, suitable
insurance in place to cover unforeseen
investment requirements (i.e fire,
criminal damage, weather damage) and
to cover against losses from public or
employers liability claims.
- Dedictated resources
- Captial investment programme
- Internal KPI monitoring
- Wellbeing surveys
- Compliance checklist
- Savills stock condition survey
- External inspection
Financial & Treasury
Management / Welfare
Reform – R.3 Cash
If we overspend or fail to collect sufficient
income we will be unable to return the surplus
needed to meet our strategic aims, to satisfy
our regulators and could ultimately breach
our banking covenants. If we do not manage
our cash flow appropriately we could breach
payments terms with contractors leading to
reputational as well as financial losses.
- Welfare Reform and enhanced
roll out of Universal Credit
- Business Plan
- Board approved budget
- Finance update report all Board meetings
- Stress testing
- Management accounts
- External Audit
- NROSH quarterly returns
KPIs:
- Rent collected
- Void loss
- agency spend
- Contingency built into budget
- Budgets are prudent; overspend will
breach our internal targets but not
affect our external covenants.
- Monthly covenants
- Monthly KPIs
- Monthly Mgt Account
- Daily cash monitoring
- Qualified staff
- Risk appetite
- Treasury policy
- Risk monitoring
- Risk register
- Audit & Assurance Com.
- Treasury Management
- Compliance checklist
- External audit
- Regulatoy returns
- Lender returns
Cost & Inflation / Income
Collection / Financial &
Treasury Management /
Value for Money –
BREXIT
The ongoing decision to leave the EU, may
be with a deal to trade with other EU member
states or may not, this may have an impact
on interest rates, inflation, access to
development funding, labour market and
increase in bad debts..
- The leave date has now been
set to the 31s October 2019
A combination of stresses; interest rates,
inflationary rises, labour market, reduction in
income, increase in bad debts, increase in
voids derease in property values and access
to component replacement parts will all be
tested within the new financial budget
2019.20. A separate stress testing report
specifically focused on Brexit has been
presented to Group Board.
Our current mitigation is significant
headroom within our EBITDA MRI &
Net Debt per unit covenance. Trident
Group continues to hold sufficicent
cash reserves and has in place by May
2019 all of the RCF with Barclays
charged and available: £8m on top of
£6m cash at bank.
- Stress testing
- Internal KPI Monitoring
- Business planning
- Benchmarking
- Risk monitoring
- Risk register
- Internal audit
- External audit
- QFS section F submission
Trident Housing Association Limited and its subsidiaries
Page | 31 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Strategic Risk Register (continued)
Sector Risk Profile 2018
& Risk Area
Risk Description Current considerations Controls and Assurance Current Mitigations 1st Line of Assurance 2nd
Line of Assurance 3rd Line of Assurance
Cost & Inflation / Income
collection / Financial &
Treasury Management /
Value for Money – R.4
Poor Financial
Performance
Inabiltiy to meet financial performance targets
set out in the budget, including cost
improvement taregts and agree efficiency
measures leads to financial losses, inability to
deliver services and our business plan.
Failure to meet and demonstrate our
compliance with the VFM Standards leads to
intervention from commissioners, lenders
and/or regulators leading to reputational
damage.
- Welfare Reform and enhanced
roll out of Universal Credit
- Change of political landscape
and change in policy
- Management accounts
- Business and Strategic Plan
- Budget
- Stress Testing
- Regulator V1 G1 grading
- Internal audit
- NROSH quarterly returns
KPIs:
- Average relet days
- Void loss
- Cost reduction achieved
- Operating Margin
- Internal controls and strict budgets
management.
- An achievable VFM cost reduction
plan included in the budget, and fully
stress-tested Regular reiteration of
VFM principles in staff induction and on
going briefings.
- Stress testing
- Business planning assumptions
- Dedicated resource
- Internal KPI monitoring
- Benchmarking
- Risk Monitoring
- Risk register
- Internal audit
- External audit
- QFS section F submission
Financial & Treasury
Management –
Refinancing & Access to
available funds
Our ability to grow and invest in our stock
depends on our ability to secure refinancing.
If we were unable to secure consistently
favoutable terms on our refinancing it would
restrict out ability to meet out strategic
objectives as the increase in financing costs
would reduce our surplus.
If we were unable to secure refinancing in a
timely fashion we would breach our banking
covenants, leading to funder intervention,
financial and reputational losses.
- Brexit uncertainty - Business Plan
- Treasury Strategy
- Stress testing (of increased repayment
costs)
- Regulator V1 Grading
- External Audit
KPIs:
- Gearing
- Operating margin
- Banking covenant compliance
- EBITDA MRI
- Our approach to gearing is prudent,
we have significant reserves with which
to maintain payments if necessary.
- Trident Group also has the ability to
draw £3,600k of additional facilities into
its current account prior to the 29th
March that are charged and
immediately available, with a further
£6,000k in the process of charging.
- Stakeholder management
- Business plan
- Stress tesing
- Standing financial instructions
- Savills Treasury Mgt
- Risk monitoring
- Risk register
- Group Board Approval
- Debt per unit covenant
- Cash management
- Audit & Assurance Com.
- External audit – going concern
- Regulator – period of financing
- Matrix development partnership
Trident Housing Association Limited and its subsidiaries
Page | 32 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Strategic Risk Register (continued)
Sector Risk Profile 2018
& Risk Area
Risk Description Current considerations Controls and Assurance Current Mitigations 1st Line of Assurance 2nd
Line of Assurance 3rd Line of Assurance
Operation risk –
Devlopement / Market
Sales – Development (No
market sales)
Undertaking new development leads to
increased cost exposure, as well as potential
Regulatory ones.
Developing as part of a consortium presents
risks where there is reliance on partners to
deliver targets and services.
- Commitment to new units
ouside of the original business
plan made.
- Development cash flow
- Business Plan
- Stress tesing
- Return on investment calculation
- Oversight of Matrix Board
- Legal option of Homes England agreement
KPIs:
- Gearing
- Operating margin
- Banking covenant compliance
- Net debt per unit
-EBITDA MRI
Trident group are not proposing to
develop for general sales, all
development will be covered by
stringent contracts referencing stage
payments in line with Clerk of Works
sign off, a further retention is held to
cover off additional works in the event
of needing so.
Counterparty risk is taken into account
when contracting with an external
organisation, best endeavours are
made to review financial robustness of
contractors.
- Stress testing
- Business planning assumptions
- Internal approval sign off
- Group Board Away Days
- Group Board approval
- Business case submissions
- Strategic plan
- Golden rules
- Matrix development partnership
- Quarterly financial submission
- Savills Treasury Support
Supported Housing – R.7
Supported Services &
Accommodation
If Central or Local Governement decisions led
to the withdrawal of funding for support
services and supported housing we would be
unable to achieve our strategic aims.
If funding were removed this would impact on
the wellbeing of our residents and service
users, as well as representing significant
income loss for the organisation. If the loss
was due to perofmrance this wold have a
reputation impact also.
New proposal for Suuported
Housing Funding
- FFR
- Internal audit report
- Stress testing ( of partial and complele
removal of support contracts, as well as
negative impacts of government proposals
RE: supported accommodation)
- Business Plan
- Golden Rules (on new business)
KPIs:
- Care and support contract met
- Care home ratings
Income insurance, prudent reserves
policy which allows quick access and
covers operation for 18+ months,
diversification of contracts and contract
end dates, internal audit and strong
cash handling/anti-fraud processes.
- Internal KPI monitoring
- REACH reserves policy
- Golden rules
- REACH Board reporting
- Contract performance monitoring
- External audit validation
- Commissioner engagement
Trident Housing Association Limited and its subsidiaries
Page | 33 Report and financial statements for the year ended 31 March 2019
Strategic Report And Operating and Financial Review
Capital Structure and Treasury Policy In respect of Treasury arrangements, these are actively managed. The Group does not have any abnormal exposure to price, credit, liquidity and cash flow risks arising from its trading activities. The Group does not enter into any hedging transactions and no trading in financial instruments is undertaken. The loans maturity is as follows: Maturity 2019 2018 £m £m Within one year 3.3 3.2 Between one and two years 3.3 3.3 Between two and five years 21.1 19.8 After five years 52.6 55.7 ________ ________ Total loans (notes 19 and 20) 80.3 82.0 ________ ________ The Group has four principal funders being Nationwide, THFC, Orchardbrook and Barclays.
Trident has put in place an active Interest Management Strategy. This combines current and future hedging
arrangements to provide longer term certainty around interest costs whilst obtaining some financial benefits
from the current low libor rates offered by the financial markets. As a proportion of our loan portfolio at the
date of this report around 57% (2018: 37%) of our loans are at a fixed rate.
The period of financing as at the 31st March 2019 is 48 months, this compares comfortably with the
Regulator of Social Housings expectation of a minimum of 18 months.
Statement of Compliance In preparing the Operating and Financial Review and Board Report, the Board has followed the principles
set out in the Housing SORP 2014 and FRS 102.
Code of Governance and Financial Viability Standard
The Board has adopted the National Housing Federation‟s Code of Governance (2015), and Code of
Conduct (2012). There are no known instances of non-compliance with the NHF Code. On an annual basis,
Trident completes the NHF Checklist which offers the Board Assurance on how the Organisations is
complying with the Code. The Board has formally assessed its compliance against the Code of Governance and confirms that the Organisation is compliant. The Board has assessed compliance with the Governance and Financial Viability Standards and confirms that the Organisation complies.
Trident Housing Association Limited and its subsidiaries
Page | 34 Report and financial statements for the year ended 31 March 2019
Report of the Board
The Board of Trident Housing Association Limited and its subsidiaries are pleased to present its report together with the audited financial statements for the year ended 31 March 2019.
Principal Activities, Business Review and Future Developments Details of the Group's principal activities, its performance during the year and factors likely to affect its future development are contained within the Strategic Report and Operating and Financial Review, which precedes this report.
Board Members and Executive Directors The Board members and Executive Team are set out with the Association information.
The Executive Team is the Group Chief Executive, Group Finance Director and the Group‟s Executive
Leads.
They act as executives within the authority as delegated by the Board.
Service Contracts The Group Chief Executive and the Executive Team are employed on the same terms as other staff with a
notice period of six months.
Pensions The Group Chief Executive and Executive Team are ordinary members of staff and the staff defined
contribution scheme and participated in the scheme on the same terms as all other eligible staff.
Other benefits The Group Chief Executive and Executive Team do not receive any other significant benefits.
Employees We recognise that the success of our business depends on the quality of our managers and staff. It is the
policy of the Association that training, career development and promotion opportunities should be available
to all employees.
We are committed to equal opportunities and raising awareness of Equality, Diversity and Inclusion to staff
across the Group.
The Board is aware of its responsibilities on all matters relating to health and safety. The Group has
prepared detailed health and safety policies and procedures and provides training staff training and
education on health and safety matters.
Employment of disabled persons The Association and Group are committed to a policy of recruitment, promotion and retention on the basis of
aptitude and ability without discrimination. The Group is part of the government‟s Disability Confident
Scheme which supports employers to make the most of the talents disabled people can bring to the
organisation.
Management actively encourages applications from disabled people in the employment of disabled people
whenever a suitable vacancy arises and the continued employment and retraining of employees who
become disabled whilst employed by the Group. As a Disability Confident Committed organisation, the
Group is demonstrating its commitment of equal opportunities for disabled people.
Trident Housing Association Limited and its subsidiaries
Page | 35 Report and financial statements for the year ended 31 March 2019
Report of the Board
Financial Risk Management Objectives and Policies The Group uses various financial instruments, including loans and cash, and other items such as rental arrears and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Group's operations. The existence of these financial instruments exposes the Group to a number of financial risks. The main risks arising from the Group's financial instruments are considered by the directors to be interest rate risk, liquidity risk and credit risk. The Board review these through the work of the Audit & Assurance Committee and agree policies for managing each of these risks and they are summarised below:
Treasury management Trident Group engages Savills to support with the management of liquidity, interest rate risk and counterparty risk. These activities are governed by a treasury policy and strategy which are reviewed, challenged and approved by the Group Board. The policy is based on industry good practice. The Group adopts a risk-based approach to liquidity and interest rate management, with an objective to mitigate unacceptable risk. Cash reserves are held with approved counterparties in line with the treasury policy. The organisation is funded primarily through bank loans, retained earnings and grant provided by Government Agencies. There is no exposure to derivatives or foreign currency.
Interest rate The Group's exposure to interest fluctuations on its borrowings is extensively stress tested and reviewed by the Group Board on a regular basis. During the period the Group fixed £20,000k of LIBOR based loans on the advice of Savills; our Treasury Partners. The Group Treasury Policy requires up to 80% of drawn debt to be held at fixed rates of interest. As at 31 March 2019, 57% of the Group‟s drawn monies were held on this basis. Liquidity risk The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and investing cash assets safely and profitably. The Group Board approved the 2019/20 budgeted cash flow on 25 March 2019 with minimum levels of cash at bank at any one time of £6,000k in line with the risk appetite refreshed earlier in the year. In addition to cash held on deposit Trident Group operates a revolving credit facility (RCF) with Barclays, at the point of signing this report charged and immediately available facilities were £8,152k, the Group Board do not expect to utilise this facility during 2019/20 further enhancing Trident Groups risk mitigations. Credit risk
The Group‟s principal credit risk relates to tenant arrears and appears as a high risk within the Group
Strategic Risk Register in line with the Sector Risk Profile. Trident Group has reviewed its allocation policy
and strengthened the support to eligible tenants with their application for Housing Benefit and closely
monitors the arrears of self paying tenants. During the year Trident Group employed a dedicated resource to
monitor and manage the transition to Universal Credits.
Going Concern
The Group has set out its short and medium term strategic plan, preparing a budget for 2019/20 that
delivers a net surplus of £2,753k across three entities; Trident Housing Association, Trident Reach and
Trident Star. The budget has been aligned to the strategic plan business finances and cross reference
against the financial forecast return presented to the Regulator of Social Housing (RSH), the plan for
2019/20 has also been aligned to the quarterly financial survey which was signed off by RSH in April 2019.
Each entity operates and is wholly independent from the other. Trident Housing‟s expected 2019/20 outturn
is £2,399k which is an improvement of £224k on the prior year budget, Trident Reach is £263k and Trident
Trident Housing Association Limited and its subsidiaries
Page | 36 Report and financial statements for the year ended 31 March 2019
Report of the Board
Going Concern (continued)
Star expects to deliver a net surplus of £91k. In the event of one or more of the entities being removed from
the Group the remaining are able to continue in operation as there is no loan dependencies from the Group.
Trident Group prepares a 30 year business plan which the Group Board approve the first year budget and
the business plan assumptions for the following periods, at the Group Board Away Day on 12 April 2019, the
Group Board challenged the assumptions ensuring these were stretching but achievable, Savills our
Treasury partners have also reviewed the business plan assumptions aligned to the available facilities and
reported to Group Board in their annual Treasury Report providing assurance that the 30 year business plan
provides significant headroom within the established covenants and risk appetite set by the Group Board.
The budget 2019/20 has been prepared in line with the forecast outturn 2018/19. Birmingham City Council
Supported People contracts have been retendered and the budget assumes a continuation of these
contracts, however the Group Board have taken assurance through stress testing and reserves policy that
Trident Reach has the ability to scale down its operations in the event of these contracts not being secured
at the current run rate. A new business target within the Group‟s Care & Support side operation has been
conservatively estimated at £150k with an associated cost base of £135k in line with the Group Board
approved Golden Rules and the full year effect of the PURE contract; a contract with Birmingham City
Council that embeds the placing of vulnerable urban residents into employment and training.
In November 2018 Trident Group had its grading reconfirmed at G1/V1 a grading that provided the regulator
with sufficient assurance that it had met the viability requirements of the standard. The Group has been able
to demonstrate that it has a strong financial profile, built on robust and prudent assumptions, good
headroom within the financial covenants and appropriate levels of liquidity. The level of financial risk being
taken on by Trident Group will not be considered to be unreasonable and the regulator has assurance that
the crystallisation of the identified risk can be mitigated successfully in most circumstances.
The Group as at 1 April 2019 has drawn facilities amounting to £80,291k; (£82,026k at 1st of April 2018) in
addition to which there is a further £8,152k facilities that are available that have not been drawn. The Group
Board are assured that the available facilities are sufficient to cover any risk that may crystallise. The Group
Board have also discussed in line with the extensive stress testing; testing such as Brexit, interest and
inflationary rises and a reduction in property values to name a few the level of liquidity it holds at any one
time, the Group Board have agreed a minimum cash at bank at any one time during the 2019/20 campaign
of £6,000k, the budget for 2019/20 has been prepared in line with this risk appetite.
The Group remains compliant with its lenders preparing a budget that delivers an EBITDA MRI covenant of
208% compared to an internal risk appetite of 159% and a compliant lender requirement of 110%. Net debt
per unit remains comfortably within the £35k ceiling at £25.8k across Barclays and Nationwide respectively.
The Group Board have taken assurance that these covenants and the level of risk appetite provides
significant headroom, EBITDA MRI and net debt per unit head room of £3,254k and £26,823k respectively.
The Group Board also revised their risk appetite during the period increasing the EBITDA MRI appetite from
140% to 159% and the net debt per unit from £32.5k to £30.2k.
On this basis, the Group Board has reasonable expectation that the Group has adequate resources to
continue in operational existence for the foreseeable future, being a period of twelve months after the date
on which the report and financial statements are signed. For this reason, it continues to adopt the going
concern basis in the financial statements.
Internal Controls Assurance The Group Board acknowledges its overall responsibility for establishing and maintaining the whole system
of internal control and for reviewing its effectiveness for the Group as a whole.
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.
Trident Housing Association Limited and its subsidiaries
Page | 37 Report and financial statements for the year ended 31 March 2019
Report of the Board
Internal Controls Assurance (continued)
In meeting its responsibilities, the Group Board has approved an effective framework to identify and manage
the significant risks to the Group‟s operations. This risk-based approach to establishing and maintaining
internal controls is embedded within day-to-day management and governance processes. The approach
includes the regular evaluation of the nature and extent of risks to which the Group is exposed and is
consistent with best practice.
Annual Review of the effectiveness of the System of Internal Control
The Group Board delegates responsibility for the annual review of the effectiveness of the system of internal
control to the Audit & Assurance Committee. The Audit & Assurance Committee take account of any
changes needed to maintain the effectiveness of the management and control process for risk and fraud.
Audit & Assurance Committee met six times during the course of the year. Assurance over the control
environment was obtained from the following main sources:
Risk Management
An effective risk management framework sits at the core of the system of internal control. The Group Board
confirms that the process for identifying, evaluating and managing the significant risks faced by the
organisation is ongoing, the process has been in place throughout the year and up to the date of approval of
the annual report and accounts and is regularly reviewed by the Group Board. The Group Board during the
financial year reset their risk appetite, setting out the Group Board‟s attitude to risk in the achievement of its
objectives.
The Audit & Assurance Committee approves at each meeting the contents and scoring of the risk register
on behalf of the Group Board who maintain direction and oversight as part of good governance. The
Executive and Senior Management Team regularly consider reports on risks and the Group Chief Executive
is responsible for reporting to the Group Board any significant changes affecting key risks.
The risk register is further enhanced by the 3 Lines of Defence:
First Line – Day to Day Management
Second Line – Corporate Oversight
Third Line – Independent Assurance
Internal Audit Service
The prime responsibility of the internal audit service is to provide the Group Board with assurance on the
adequacy and effectiveness of the internal control system, including risk management and governance.
Internal audit also plays a valuable role in helping management to improve systems of internal control and
so to reduce the potential effects of any significant risks faced. Internal Audit is delivered by an internal
auditor with an element of external support. The Internal Auditor has direct access to the Audit & Assurance
Committee including one in-camera meeting without management present.
The Audit & Assurance Committee reviews the findings arising from all Internal Audit Reports and is
provided with progress reports on the implementation of all agreed recommendations for improvement to
the point of conclusion. The Recommendation Tracker records all agreed recommendations which are
followed up by the internal auditor. Progress of the Recommendation Tracker is monitored by the Audit &
Assurance Committee.
Trident Housing Association Limited and its subsidiaries
Page | 38 Report and financial statements for the year ended 31 March 2019
Report of the Board
Internal Controls Assurance (continued)
Internal Audit is sufficiently independent of the activities that it audits to enable the internal auditor to
perform in such a way that allows the internal auditor to make impartial and effective professional
judgements and recommendations.
The Internal Auditor provides an annual report and overall assurance opinion on the system of internal
control based on the Internal Audit work performed during the year and management response to that work.
The 2018/19 Internal Auditor Opinion and Annual Report identified no material concerns.
The Internal Audit Charter sets out the nature, role, responsibilities and authority of the Internal Audit
service within the Group – this was updated and approved by Audit & Assurance Committee during 2019.
Fraud Management
There is an established code for Integrity & Bribery and Trident Group operates a zero tolerance approach
to any instances of fraud or corruption. There is a Fraud & Bribery Prevention, Detection and Response
policy, along with a Money Laundering policy and Whistleblowing policy. These policies are reviewed
regularly. A fraud register is maintained by Internal Audit of identified incidents. In addition there is an
electronic hospitality register which is maintained by the Company Secretary; a register that identifies any
gifts that may have been received. There were no material issues identified during the year. The Group
has appropriate insurance cover in place to mitigate the potential financial losses associated with fraud.
Information and Financial Reporting Systems
Financial reporting procedures include a long-term financial plan, detailed annual budgets, detailed treasury
reports, value for money reporting and regular management accounts which are reviewed by the Group
Board.
Any issues raised in the external audit management letter issued at conclusion of the annual audit are dealt
with to the satisfaction of both the external auditors and the Audit & Assurance Committee with
progress tracked to the point of conclusion.
Key performance indicators and business objectives set as part of the performance management
framework are regularly reviewed by the Group Board to assess progress and outcomes against the
Strategic and Business Plan.
Executive Leads and Senior Management Team
The Group‟s Recruitment and Selection policy supports the appointment of experienced and suitably
qualified staff being responsible for important business functions. Annual appraisal procedures have been
established to maintain standards of performance.
Each employee who has financial or devolved budgetary responsibility is provided with a copy of the
Financial Regulations and provided appropriate training. Employees shall be responsible for the
accountability and control of all resources including plant, buildings, materials, cash and stores relating to
their areas of responsibility.
The Audit & Assurance Committee shall be responsible for making recommendations to the Group Board
on new Financial Regulations and amendments to existing ones, as it considers necessary for the
supervision and control of the finances, accounts, income, expenditure and assets of the Group.
Trident Housing Association Limited and its subsidiaries
Page | 40 Report and financial statements for the year ended 31 March 2019
Report of the Board
Internal Controls Assurance (continued)
Control Environment and Procedures
Governance arrangements are subject to continuing review and development to ensure they remain fit for
purpose. Board and sub-Committee membership is reviewed annually in line with the membership policy
terms. Compliance with the chosen code of governance and the Regulatory Framework is reviewed
annually.
The Board retains responsibility for a defined range of issues covering strategic, operational, financial, and
compliance matters and new investment projects. The Board disseminates its requirements to employees
through a framework of policies and procedures.
The Board confirms that there is an ongoing process for identifying, evaluating and managing significant
risks faced by the Group and for preventing, detecting, investigating and insuring against fraud. This
process had been in place throughout the year under review, up to the date of the Annual report, and is
regularly reviewed by the Board.
Statement of the responsibilities of the board for the report and financial statements
The Board members are responsible for preparing the report of the Board and the financial statements in
accordance with applicable law and regulations.
Co-operative and Community Benefit Society law and social housing legislation require the Board members
to prepare financial statements for each financial year in accordance with United Kingdom Generally
Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).
In preparing these financial statements, the Board members are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards and the Statement of Recommended Practice: Accounting by registered social housing providers 2014 have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and association will continue in business.
The Board members are responsible for keeping adequate accounting records that are sufficient to show
and explain the Group and Association‟s transactions and disclose with reasonable accuracy at any time the
financial position of the Group and Association and enable them to ensure that the financial statements
comply with the Co-operative and Community Benefit Societies Act 2014, the Co-operative and Community
Benefit Societies (Group Accounts) Regulations 1969, the Housing and Regeneration Act 2008 and the
Accounting Direction for Private Registered Providers of Social Housing 2015. They are also responsible
for safeguarding the assets of the Group and Association and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
The Board is responsible for ensuring that the report of the board is prepared in accordance with the
Statement of Recommended Practice: Accounting by registered social housing providers 2014.
Trident Housing Association Limited and its subsidiaries
Page | 40 Report and financial statements for the year ended 31 March 2019
Financial statements are published on the Group and Association‟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 and Association‟s website
is the responsibility of the board members. The Board members‟ responsibility also extends to the ongoing
integrity of the financial statements contained therein.
All of the current Board members have taken all of the steps that they ought to have taken to make
themselves aware of any information needed by the Group‟s auditors for the purpose of their audit and to
establish that the auditors are aware of that information. The Board is not aware of any relevant audit
information of which the auditors are unaware.
Annual General Meeting The Annual General Meeting will be 23rd September 2019.
External Auditors A resolution to re-appoint BDO will be proposed at the forthcoming annual general meeting. The report of the Board is to be approved by the Board on 29 July 2019 and signed on its behalf by: Andrew Cooke Company secretary
Trident Housing Association Limited and its subsidiaries
Page | 41 Report and financial statements for the year ended 31 March 2019
Independent Auditor's Report to the Members of Trident Housing Association Ltd
Opinion
We have audited the financial statements of Trident Housing Association Limited (“the Association”) and its
subsidiaries (“the Group”) for the year ended 31 March 2019 which comprise the consolidated and
Association statement of comprehensive income, the consolidated and Association statement of financial
position, the consolidated and Association statement of changes in equity, the consolidated cash flow
statement 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:
give a true and fair view of the state of the Group‟s and of the Association‟s affairs as at 31 March 2019 and of the Group‟s and the Association‟s surplus for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been properly prepared in accordance with the requirements of the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2015.
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 Association in accordance with the ethical requirements that are relevant to our audit of the
financial statements in the UK, including the FRC‟s Ethical Standard, and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to
report to you where:
the board members use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
the board members have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Group‟s or the Association‟s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
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 Strategic Report and Report of the Board 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.
Trident Housing Association Limited and its subsidiaries
Page | 42 Report and financial statements for the year ended 31 March 2019
Independent Auditor's Report to the Members of Trident Housing Association Ltd
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
the information given in the Strategic report and the Report of the Board for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and Report of the Board have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the Parent Association and its
environment obtained in the course of 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;
adequate accounting records have not been kept by the parent association, or returns adequate for our audit have not been received from branches not visited by us; or
the parent association financial statements are not in agreement with the accounting records and returns; or
certain disclosures of board member and or directors‟ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
Responsibilities of the board
As explained more fully in the board members responsibilities statement, 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
Association‟s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the board either intend to liquidate the
Group or the Association or to cease operations, or have no realistic alternative but to do so.
Trident Housing Association Limited and its subsidiaries
Page | 43 Report and financial statements for the year ended 31 March 2019
Independent Auditor's Report to the Members of Trident Housing Association Ltd
Auditor’s responsibilities for the audit of the financial statements
This report is made solely to the members of the Association, as a body, in accordance with 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 Association‟s members those matters we are required to state to them in an auditor‟s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Association and the members as a body, for our audit work, for this report, or for the opinions we have formed.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor‟s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council‟s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part
of our auditor‟s report.
Kyla Bellingall (Senior Statutory Auditor) For and on behalf of BDO LLP, Statutory Auditor
Two Snowhill
Birmingham
B4 6GA
Date:
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
Trident Housing Association Limited and its subsidiaries
Page | 44 Report and financial statements for the year ended 31 March 2019
Consolidated Statement of Comprehensive Income
Note 2019 2018 £'000 £'000 Turnover 3 33,263 32,668 Operating costs 3 (28,040) (27,368) ________ ________ Operating surplus 3,6 5,223 5,300 Surplus on disposal of fixed assets
9 270 127
Other interest receivable and similar income
17 3
Movement in fair value of investment properties
15 50 10
Interest and financing costs 11 (3,040) (2,851)
________ ________ Surplus before and after taxation and total comprehensive income for the year 2,520 2,589 ________ ________
All activities are continuing. The notes on pages 51 to 77 form part of these financial statements
Trident Housing Association Limited and its subsidiaries
Page | 45 Report and financial statements for the year ended 31 March 2019
Association Statement of Comprehensive Income Note 2019 2018 £'000 £'000 Turnover 3 18,967 18,419 Operating costs 3 (13,909) (13,529) ________ ________ Operating surplus 3,6 5,058 4,890
Surplus on disposal of fixed assets
9 270 127
Other interest receivable and similar income
17 3
Movement in fair value of investment properties 15
50 10 Interest and financing costs 11
(3,040) (2,851)
________ ________ Surplus before and after taxation
2,355
2,179
Other comprehensive income for the year
10 - -
________ ________
Total comprehensive income for the year
2,355
2,179
________ ________
The Association's results all relate to continuing activities. The notes on pages 51 to 77 form part of these financial statements
Trident Housing Association Limited and its subsidiaries
Page | 46 Report and financial statements for the year ended 31 March 2019
Consolidated Statement of Financial Position Note 2019 2019 2018 2018 £'000 £'000 £'000 £'000 Fixed assets Tangible assets Housing Properties - Cost 13 185,886 182,334 - Depreciation 13 (31,663) (29,229) ________ ________ 154,223 153,105 Other fixed assets Investment properties
14 15
3,324 1,380
3,236 1,330
________ ________ Total fixed assets 158,927 157,671 Current assets Stocks 17 57 59 Debtors – receivable within one year
18
3,052
4,370
Cash at bank and in hand 6,269 7,283 ________ ________ 9,378 11,712 Creditors: amounts falling due within one year 19 (8,508) (10,040) ________ ________ Net current assets 870 1,672 ________ ________ 159,797 159,343 Creditors: amounts falling due after more than one year 20 (135,962) (138,007) Provisions for liabilities 21 - (21) ________ ________
Total net assets 23,835 21,315
________ ________
Income and expenditure reserve 22,257 19,678 Restricted reserve Revaluation Reserve
464 1,114
523 1,114
________ ________ Accumulated funds 23,835 21,315 ________ ________ The financial statements were approved by the Board on 29 July 2019 and were signed on its behalf by: Andrew Ballard Colin Small Andrew Cooke Chair of the Group Board Chair of the Group Company Secretary Audit & Assurance Committee
The notes on pages 51 to 77 form part of these financial statements.
Trident Housing Association Limited and its subsidiaries
Page | 47 Report and financial statements for the year ended 31 March 2019
Association Statement of Financial Position
2019 2019 2018 2018 Note £'000 £'000 £'000 £'000 Fixed assets Tangible assets Housing properties - Cost 13 185,886 182,334 - Depreciation 13 (31,663) (29,229) ________ ________ 154,223 153,105 Other fixed assets 14 3,083 3,057 Investment properties 15 1,380 1,330 ________ ________ Total fixed assets 158,686 157,492 Current assets Stocks 17 48 50 Debtors - receivable within one year
18
1,828
2,616
Cash at bank and in hand 4,904 6,129 ________ ________ 6,780 8,795 Creditors: amounts falling due within one year 19 (7,972) (9,103) ________ ________ Net current assets/(liabilities) (1,192) (308) ________ ________ 157,494 157,184 Creditors: amounts falling due after more than one year 20 (135,962) (138,007) ________ ________ Total net assets
21,532
________
19,177
________ Share capital
22
-
-
Income and expenditure reserve 20,418 18,063 Restricted reserve - - Revaluation Reserve 1,114
________ 1,114
________ Accumulated funds 21,532 19,177 ________ ________
The financial statements were approved by the Board on 29 July 2019 and were signed on its behalf by: Andrew Ballard Colin Small Andrew Cooke Chair of the Group Board Chair of the Group Company Secretary Audit & Assurance Committee
The notes on pages 51 to 77 form part of these financial statements.
Trident Housing Association Limited and its subsidiaries
Page | 48 Report and financial statements for the year ended 31 March 2019
Consolidated Statement of changes in reserves
Income and
expenditure
Restricted
Revaluation
reserve reserve reserve Total £'000 £'000 £'000 £'000
Balance at 1 April 2018 Surplus/(deficit) for the year Other Comprehensive Income Unrealised surplus/(deficit) on revaluation of housing properties
19,678
2,529
50
523
(59)
-
1,114
-
-
21,315
2,470
50
________ ________ ________ ________
Balance at 31 March 2019 22,257 464 1,114 23,835 ________ ________ ________ ________
Income and expenditure
Restricted
Revaluation
reserve reserve reserve Total
£'000 £'000 £'000 £'000
Balance at 1 April 2017 Surplus/(deficit) for the year Other Comprehensive Income Unrealised surplus/(deficit) on revaluation of housing properties
17,446
2,222
10
166
357
-
1,114
-
-
18,726
2,579
10
________ ________ ________ ________
Balance at 31 March 2018 19,678 523 1,114 21,315
________ ________ ________ ________
The notes on pages 51 to 77 form part of these financial statements.
Trident Housing Association Limited and its subsidiaries
Page | 49 Report and financial statements for the year ended 31 March 2019
Association Statement of changes in reserves
Income and
expenditure
Restricted
Revaluation
account reserve reserve Total £'000 £'000 £'000 £'000
Balance at 1 April 2018 Surplus/(deficit) for the year Other Comprehensive Income Unrealised surplus/(deficit) on revaluation of housing properties
18,063
2,305
50
-
-
-
1,114
-
-
19,117
2,305
50
________ ________ ________ ________ Balance at 31 March 2019 20,418 - 1,114 21,532 ________ ________ ________ ________
Income and
expenditure
Restricted
Revaluation
account reserve reserve Total £'000 £'000 £'000 £'000
Balance at 1 April 2017 Surplus/(deficit) for the year Other Comprehensive Income Unrealised surplus/(deficit) on revaluation of housing properties
15,897
2,186
10
17
(17)
-
1,114
-
-
16,998
2,169
10
________ ________ ________ ________ Balance at 31 March 2018 18,063 - 1,114 19,177 ________ ________ ________ ________
The notes on pages 51 to 77 form part of these financial statements.
Trident Housing Association Limited and its subsidiaries
Page | 50 Report and financial statements for the year ended 31 March 2019
Consolidated Statement of Cash Flows
2019 2019 2018 2018 £'000 £'000 £'000 £'000 Cash Flow from operating activities Surplus for the financial year 2,520 2,589 Adjustments for: Depreciation of Housing Properties 2,622 2,571 Depreciation of Other Fixed Assets 759 808 Grant amortisation (897) (911) Investment property revaluation (50) (10) Interest payable and finance costs 3,040 2,851 Interest received (17) (3) Surplus on disposal of fixed assets (269) (64) Decrease / (increase) in debtors 1,318 (1,775) Decrease / (increase) in stocks 2 (10) (Decrease) / increase in creditors (1,678) 2,257 (Decrease) / increase in provisions (21) 21
Net cash generated from operating activities 7,329 8,324 Cash flow from investing activities Proceeds from sale of Housing Properties 575 423 Purchase of Housing Properties (3,980) (6,642) Purchase of Other Fixed Assets (848) (724) Receipt of grant 599 683 Interest received 17 3
Net cash from investing activities (3,637) (6,257) Cash flow from financing activities Interest paid (2,944) (2,794) New loans – bank 1,500 4,000 Debt issue costs incurred (27) (94) Repayment of loans – bank (3,235) (3,088)
Net cash used in financing activities (4,706) (1,976)
Net (decrease) / increase in cash and equivalents (1,014) 91 Cash and cash equivalents at beginning of year 7,283 7,192
Cash and cash equivalents at end of year 6,269 7,283
The notes on pages 51 to 77 form part of these financial statements.
Trident Housing Association Limited and its subsidiaries
Page | 51 Report and financial statements for the year ended 31 March 2019
Notes to the financial statements
1 Legal status
The Association and its subsidiary, Trident Charitable Housing Association Limited, are both incorporated under the Co-operative and Community Benefit Societies Act 2016, are registered social landlords, and exempt charities. Trident Reach the People Charity is incorporated under the Companies Act 2006 and is registered as a charity. Trident Star Limited, a company limited by shares, is incorporated under the Companies Act 2006.
2 Accounting policies
The financial statements of the Group and Association are prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP) including Financial Reporting Standard 102 (FRS 102) and the Housing SORP 2014: Statement of Recommended Practice for Registered Social Housing Providers and comply with the Accounting Direction for Private Registered Providers of Social Housing 2015.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires group management to exercise judgement in applying the group‟s accounting policies (see below). Basis of consolidation The Group accounts consolidate the accounts of the association and all its subsidiaries at 31 March 2019 as if they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. The consolidated financial statements incorporate the results of business combinations using the purchase method. Significant judgements and estimates In preparing these financial statements, the key judgements and estimates have been made in respect of the following:
Impairment of tangible assets
A key judgement has been made in respect of whether there are indicators of impairment of the
Group‟s tangible assets. Factors taken into consideration in reaching such a decision include the
economic viability and expected future financial performance of the asset and where it is a component
of a larger cash-generating unit, the viability and expected future performance of that unit.
The Group undertakes a cyclical review of all its assets which includes a programme of independent
stock condition surveys and building safety assessment. We can confirm that there have been no
significant issues identified in respect to the physical condition of any property or other factors that
could negatively impact on asset value or future operational life.
Fire risk assessments are updated annually or sooner (subject to risk) supported remedial programme
to ensure that all our properties comply with the relevant fire safety legislation and guidelines. Trident
does not manage or own any residential high-rise buildings with combustible cladding systems (i.e.
Aluminium Composite Material).
The Association obtained a valuation from Nationwide in February 2019 for their charged stock that
shows an EUV of £81.9m. Further stock is held through Barclays charged assets and THFC loan
facilities.
Trident Housing Association Limited and its subsidiaries
Page | 52 Report and financial statements for the year ended 31 March 2019
Notes to the financial statements
2 Accounting policies (continued)
We have also considered the following additional impairment indicators: -
Long term voids – there are 21 long term voids this represents an insignificant proportion of the
total stock.
Obsolescence – there has been no unexpected decline in asset values.
This provides sufficient reassurance that no impairment provisions are necessary in 2018/19.
Useful Economic Life of components Each component has been assessed and an asset life determined. The useful life used for asset management purposes has been used in the accounts.
Financial instruments – borrowings – Negative compensation and funding indemnity clauses
Management have assessed the Association‟s loan facilities as basic financial instruments. The
Association‟s fixed rate loan facilities allow early payment of the principal and accrued interest in
relation to fixed interest tranches. There is an indemnity clause that requires the borrower to pay a
compensation premium to the lender if market rates have fallen since the inception of the loan. There
is also a clause that means that if market rates have increased, the borrower (i.e. Trident) would
benefit from a compensation premium.
Management do not consider that the clause allowing Trident to potentially receive a compensation
premium upon early repayment of some or all of the fixed rate loan liability makes this financial
instrument „non-basic‟ or „other‟ as outlined in FRS 102 section 11. Management consider that this
particular loan clause is specifically compliant with section 11.9b) and 11.9c) of FRS 102 and that the
substance of this loan arrangement was always that it was always intended to be a simple fixed rate
loan arrangement.
Investment properties
An estimate relates to the determination of carrying value of investments at fair value through profit and loss. In determining this amount, the Group follows the International Private Equity and Venture Capital Valuation Guidelines, applying the overriding concept that fair value is the amount for which an asset can be exchanged between knowledgeable willing parties in an arm‟s length transaction. The nature, facts and circumstance of the investment drives the valuation methodology. 13 properties were identified as being market rent property. These properties are therefore not held for social benefit and have been re-classified as an investment property at valuation £1.330m and will not be depreciated.
Recoverability of debtors
The estimate for receivables relates to the recoverability of the balances outstanding at year end. A review is performed based on assessing collectability at an individual debtor level to consider whether the debt is recoverable. The business provides 100% against debts from former tenants (FT) and 40% against debts from current tenants (CT). The provision for FT has reverted back to 100% in the year based on evidence relating to recoverability. In terms of 40% CT provision, an assessment based on % recoverability based on age profile has been used, supported by the Revenue Recognition Team with adjustments made as required. Turnover and revenue recognition 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 VAT) of goods and services supplied in the year and revenue grants receivable in the year.
Trident Housing Association Limited and its subsidiaries
Page | 53 Report and financial statements for the year ended 31 March 2019
Notes to the financial statements
2 Accounting policies (continued) Rental and service charge 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 point of legal completion of the sale. Revenue grants are receivable when the conditions for receipt of agreed grant funding have been met. Charges for support services funded under Supporting People are recognised as they fall due under the contractual arrangements with administering authorities. Service charges
The Group adopts the variable method for calculating and charging service charges to its tenants and leaseholders. Expenditure is recorded when a service is provided and charged to the relevant service charge account or to a sinking fund. Income is recorded based on the estimated amounts chargeable. Value added tax The Group charges Value Added Tax (VAT) on some of its income and is able to recover part of the VAT it incurs on expenditure. The financial statements include VAT to the extent that it is suffered by the Group and not recoverable from HM Revenue and Customs. The balance of VAT payable or recoverable at the year end is included as a current liability or asset. Interest payable Interest is capitalised on borrowings to finance developments to the extent that it accrues in respect of the period of development if it represents either: a) Interest on borrowings specifically financing the development programme after deduction of social
housing grant (SHG) received in advance; or
b) A fair amount of interest on borrowings of the Association as a whole after deductions of SHG received in advance to the extent that they can be deemed to be financing the development programme.
Other interest payable is charged to the income and expenditure account in the year.
Disclosure exemptions
In preparing the separate financial statements of THA, advantage has been taken of the following
disclosure exemptions available in FRS 102:
Only one reconciliation of the number of shares outstanding at the beginning and end of the period has been presented as the reconciliations for the Group and THA company would be identical;
No cash flow statement has been presented for the parent company, THA;
Disclosures in respect of THA‟s financial instruments have not been presented as equivalent disclosures have been provided in respect of the Group as a whole; and
No disclosure has been given for the aggregate remuneration of the key management personnel of THA, as their remuneration is included in the totals for the Group as a whole.
Going Concern
After making enquiries and reviewing the financial plan, the Board has a reasonable expectation that
the Group has 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.
Trident Housing Association Limited and its subsidiaries
Page | 54 Report and financial statements for the year ended 31 March 2019
Notes to the financial statements
2 Accounting policies (continued) Pensions Final salary scheme This scheme was closed to new entrants as at 31 March 2002 and the benefits of members secured with an insurance company in December 2013. Money purchase scheme Contributions payable to this pension scheme are charged to the income and expenditure account in the period to which they relate. Housing properties Housing properties are principally properties 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. The Association's development programme is managed by the lead social housing provider in the Matrix Partnership, whose management costs relating to development are charged to the Association and capitalised. Development department costs are capitalised where they are directly attributable to bringing the properties into working condition for their intended use. Directly attributable costs are the labour costs of our employees arising directly from the construction or acquisition of the property and incremental costs that would have been avoided only if individual properties had not been constructed or acquired. Works to existing properties which replace a component that has been treated separately for depreciation purposes, along with those works that result in an increase in net rental income over the lives of the properties, thereby enhancing the economic benefits of the assets, are capitalised as improvements. Shared ownership properties are split proportionally between current and fixed assets based on the element relating to expected first tranche sales. The first tranche proportion is classed as a current asset and related sales proceeds included in turnover. The remaining element is classed as a fixed asset and included in housing properties at cost, less any provisions needed for depreciation or impairment. Investment properties Investment properties consist of commercial properties and other properties not held for the social benefit or for use in the business. Investment properties are measured at cost on initial recognition and subsequently at fair value as at the year end, with changes in fair value recognised in income and expenditure. Fair value is determined by external valuers. No depreciation is provided. Debtors and creditors Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in other operating expenses. Holiday pay accrual A 31 March year end for holidays was adopted across the Group during 2018/19, with no carry forward of unused holiday pay allowed.
At 31 March 2018 a liability was recognised to the extent of any unused holiday pay entitlement which had accrued at that date and carried forward to future periods. This was measured at the undiscounted salary cost of the accrued future holiday entitlement.
Trident Housing Association Limited and its subsidiaries
Page | 55 Report and financial statements for the year ended 31 March 2019
Notes to the financial statements
2 Accounting policies (continued) Government grants Grants received since the transition date in relation to newly acquired or existing housing properties is accounted for using the accrual model set out in FRS 102 and the Housing SORP 2014. Grant is carried as deferred income in the balance sheet and released to income and expenditure account on a systematic basis over the useful economic lives of the asset for which it was received. In accordance with Housing SORP 2014 the useful economic life of the housing property structure has been selected (see below). Recycled capital grant fund On the occurrence of certain relevant events, such as the sale of property, Homes England can direct the Association to recycle capital grants or to make repayments of the recoverable amount. The Group adopts a policy of recycling, for which a separate fund is maintained (recycled capital grant fund or RCGF). If unused within a three year period, it will be repayable to Homes England with interest. Any unused recycled capital grant held within the RCGF, which it is anticipated will not be used within one year is disclosed in the balance sheet under creditors due after more than one year. The remainder is disclosed under creditors due within one year. Depreciation Housing land and buildings Freehold land is not depreciated. Depreciation of housing properties is charged so as to write off the cost of freehold housing properties (net of social housing and other grants) to their estimated residual value on a straight line basis over their expected useful economic lives as follows:
Housing Properties - 100 years Major components: Kitchens - 20 years Gas boilers/fires - 15 years Bathrooms - 30 years Windows and external doors - 30 years Electrics - 40 years Roof structure and covering - 70 years Mechanical systems (heating, ventilation , plumbing) - 30 years Environmental Works - 30 years
Housing properties, including those with individual components, which are depreciated over a period in excess of 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, fixed assets are written down to their recoverable amount, being the higher of the net realisable value or the value in use to the Group. Any such write down is charged to operating surplus.
Trident Housing Association Limited and its subsidiaries
Page | 56 Report and financial statements for the year ended 31 March 2019
Notes to the financial statements
2 Accounting policies (continued) Other fixed assets Depreciation is calculated to write off the cost less estimated residual value of other fixed assets on a straight line basis over their estimated lives as follows:
Housing fixtures and fittings - 15 to 30 years Motor vehicles - 2 to 5 years Housing furniture and
equipment - 5 to 7 years
Direct labour equipment - 3 years Tenant amenities equipment - 5 to 10 years Office equipment - 4 to 10 years Leasehold offices - 70 years
Leased assets Assets held under finance leases are included in the balance sheet and depreciated in accordance with the Group‟s normal accounting policies. The present value of future rentals is shown as a liability. The interest element of rental obligations is charged to the income and expenditure account over the period of the lease in proportion to the balance of capital repayments outstanding. Rentals payable under operating leases are charged to the income and expenditure account on a straight line basis over the lease term. Heritage assets There is no active acquisition policy for acquiring heritage assets. Any assets acquired are held as part of the social investment strategy and are held at cost. The assets are maintained and preserved in accordance with the title restrictions and are accounted for under FRS 102. Stock and properties for sale Stock represents work in progress and completed properties, including housing properties developed for transfer to other registered providers; properties developed for transfer to other registered providers; properties developed for outright sale; shared ownership properties. For shared ownership properties the value held as stock is the estimated cost to be sold as a first tranche. Stock is stated at the lower of cost and net realisable value. Cost comprises materials, direct labour and direct development overheads. Net realisable value is based on estimated sales proceeds after allowing for all further costs to completion and selling costs. Loans, investments and short term deposits All loans, instruments and short term deposits held by the Group, with the exception of the Lenders Option Borrowers Option Loan and Cancellable embedded option arrangements are classified as basic financial instruments in accordance with FRS 102. These instruments are initially recorded at the transaction price less any transaction costs (historical cost), FRS102 requires that basic financial instruments are subsequently measured at amortised cost, however the Group has calculated that the difference between the historical cost and amortised cost basis is not material and so these financial instruments are stated on the balance sheet at historical cost. Loans and instruments that are payable or receivable within one year are not discounted. Financial liabilities and equity Financial liabilities and equity are classified according to the substance of the financial instrument‟s contractual obligations, rather than the financial instrument‟s legal form.
Trident Housing Association Limited and its subsidiaries
Page | 57 Report and financial statements for the year ended 31 March 2019
Notes to the financial statements
2 Accounting policies (continued) 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 three months or less. Reserves Income received, and expenditure incurred, for restricted purposes is separately accounted for within restricted funds. Realised and unrealised gains and losses on assets held by these funds are also allocated to the fund. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the funders or which have been raised by the charity for a particular purpose. The revaluation reserve is created from surpluses on asset revaluation. Agency managed units In respect of units owned by the Association where the managing agent suffers the risks and has control of the benefits, the income and expenditure and related assets and liabilities are not included in the financial statements.
Leasehold sinking funds
Unexpected amounts collected from leaseholders for major repairs on leasehold schemes and any interest received are included in creditors.
Trident Housing Association Limited and its subsidiaries
Page | 58 Report and financial statements for the year ended 31 March 2019
Notes to the financial statements
3 Turnover, operating costs and operating surplus Operating Operating Operating Operating Turnover costs surplus Turnover costs surplus 2019 2019 2019 2018 2018 2018 Group £'000 £'000 £'000 £'000 £'000 £'000 Social Housing Lettings General needs housing 10,481 (7,648) 2,833 10,238 (6,872) 3,366 Supported housing 6,769 (5,175) 1,594 6,554 (5,693) 861 Shared ownership 344 (204) 140 341 (243) 98 ________ ________ ________ ________ ________ ________ 17,594 (13,027) 4,567 17,133 (12,808) 4,325 ________ ________ ________ ________ ________ ________ Other Social Housing Activities Care and support services 13,397 (13,366) 31 13,455 (13,122) 333 Activities other than Social Housing Activities Home owners 279 (243) 36 266 (232) 34 Market rents and other income 1,097 (1,404) (307) 895 (1,206) (311) ________ ________ ________ ________ ________ ________ 1,376 (1,647) (271) 1,161 (1,438) (277) Grant amortisation 896 - 896 919 - 919 ________ ________ ________ ________ ________ ________ Total 33,263 (28,040) 5,223 32,668 (27,368) 5,300 ________ ________ ________ ________ ________ ________
Trident Housing Association Limited and its subsidiaries
Page | 59 Report and financial statements for the year ended 31 March 2019
Notes to the financial statements
3 Turnover, operating costs and operating surplus
Operating Operating Operating Operating Turnover costs surplus Turnover costs surplus 2019 2019 2019 2018 2018 2018 Association £'000 £'000 £'000 £'000 £'000 £'000 Social Housing Lettings General needs housing 10,481 (7,648) 2,833 10,238 (6,873) 3,365 Supported housing 6,119 (4,596) 1,523 5,957 (5,088) 869 Shared ownership 344 (204) 140 341 (243) 98 ________ ________ ________ ________ ________ ________ 16,944 (12,448) 4,496 16,536 (12,204) 4,332 ________ ________ ________ ________ ________ ________ Activities other than Social Housing Activities Home owners 279 (243) 36 267 (232) 35 Market rents and other income 848 (1,218) (370) 697 (1,093) (396) ________ ________ ________ ________ ________ ________ 1,127 (1,461) (334) 964 (1,325) (361) Grant amortisation 896 - 896 919 - 919 ________ ________ ________ ________ ________ ________ Total 18,967 (13,909) 5,058 18,419 (13,529) 4,890 ________ ________ ________ ________ ________ ________
Trident Housing Association Limited and its subsidiaries
Page | 60 Report and financial statements for the year ended 31 March 2019
Notes to the financial statements
4 Income, Expenditure and Operating surplus on social housing lettings General Needs Supported Shared Housing housing ownership Total Total 2019 2019 2019 2019 2018 Group £'000 £'000 £'000 £'000 £'000 Income Rents receivable 9,448 4,379 312 14,139 13,867 Service charges
receivable 1,033 2,390 32 3,455 3,265 ________ ________ ________ ________ ________ Net rental income 10,481 6,769 344 17,594 17,132 ________ ________ ________ ________ ________
Expenditure
Services (1,412) (2,708) (30) (4,150) (4,125)
Management (1,482) (575) (104) (2,161) (2,250)
Responsive
maintenance (1,929) (518) (14) (2,461) (2,245)
Planned
maintenance (969) (153) (4) (1,126) (844)
Bad debts (242) (260) (8) (510) (771)
Depreciation of
housing properties (1,614) (961) (44) (2,619) (2,572)
________ ________ ________ ________ ________
(7,648) (5,175) (204) (13,027) (12,807)
________ ________ ________ ________ ________
Operating surplus
on social housing
lettings 2,833 1,594 140 4,567 4,325
________ ________ ________ ________ ________
Void losses (157) (637) (2) (796) (762)
________ ________ ________ ________ ________
Trident Housing Association Limited and its subsidiaries
Page | 61 Report and financial statements for the year ended 31 March 2019
Notes to the financial statements
4 Income, Expenditure and Operating surplus on social housing lettings (continued)
General needs Supported Shared housing housing ownership Total Total 2019 2019 2019 2019 2018 Association £'000 £'000 £'000 £'000 £'000 Income Rents receivable 9,448 3,989 312 13,749 13,479 Service charges receivable 1,033 2,130 32 3,195 3,057 ________ ________ ________ ________ ________ Net rental income 10,481 6,119 344 16,944 16,536 ________ ________ ________ ________ ________
Expenditure
Services (1,412) (2,505) (30) (3,947) (3,930)
Management (1,482) (306) (104) (1,892) (1,985)
Responsive maintenance (1,929) (453) (14) (2,396) (2,172)
Planned maintenance (969) (153) (4) (1,126) (844)
Bad debts (242) (218) (8) (468) (700)
Depreciation of housing properties (1,614) (961) (44) (2,619) (2,572)
________ ________ ________ ________ ________
(7,648) (4,596) (204) (12,448)
(12,203)
________ ________ ________ ________ ________
Operating surplus on social
housing lettings 2,833 1,523 140 4,496 4,333
________ ________ ________ ________ ________
Void losses (157) (473) (2) (632) (610)
________ ________ ________ ________ ________
Trident Housing Association Limited and its subsidiaries
Page | 62 Report and financial statements for the year ended 31 March 2019
Notes to the financial statements
5 Accommodation in management and development 2019 2018 Group Number Number Social Housing General needs housing - Social 2,094 2,093 - Affordable 348 287 Supported housing and housing for older people 369 370 Care Homes 58 58 Low cost home ownership 84 91 Home Owners 288 288 ________ ________ Total social housing 3,241 3,187 ________ ________
The basis of allocation of properties is based upon definitions as set out in the Welfare Reform and Work Act.
2019 2018 Group Number Number Non social housing Market rent 134 149 Commercial shop lets 11 11 ________ ________
Total non social housing 145 160 ________ ________ Total owned and managed 3,386 3,347 ________ ________ Housing under development - 48 ________ ________ The group owns 35 properties (2018: 35) that are managed on its behalf, under management agreements,
by other bodies. Included in the above Group figures are 10 (2018: 10) commercial units which are managed by Trident Star.
All other units are managed by, or under the development of, the Association.
Trident Housing Association Limited and its subsidiaries
Page | 63 Report and financial statements for the year ended 31 March 2019
Notes to the financial statements
6 Operating surplus
Group Group Association Association
2019 2018 2019 2018
£'000 £'000 £'000 £'000
The operating surplus for the year is stated after charging:
Depreciation of housing properties-
annual charge
Depreciation of housing properties –
Accelerated depreciation on replaced
2,576
46
2,498
73
2,576
46
2,498
73
components
Depreciation of other tangible
fixed assets 759 808 668 703
Rent losses from bad debts 510 771 468 700
Operating lease charges
- land and buildings 640 649 246 222
- other 248 243 296 223
Auditors' remuneration
(excluding VAT):
- Fees payable to the Company's
auditors for the audit of the
financial statements 22 21 22 21
- Audit of the financial statements
of the Company's subsidiaries
pursuant to legislation 9 9 - -
________ ________ ________ ________
Trident Housing Association Limited and its subsidiaries
Page | 64 Report and financial statements for the year ended 31 March 2019
Notes to the financial statements
7 Staff costs 2019 2018 Group (excluding temporary agency costs) £'000 £'000 Wages and salaries 12,209 12,903 Social security costs 945 990 Cost of defined contribution scheme 222 178 ________ ________ 13,376 14,071 ________ ________ Average number of full-time equivalent persons (including the
Chief Executive) employed during the year based on a standard working week of 36.5 hours.
Group Number Number Office staff 163 158 Care and support staff 430 426 Maintenance staff 27 28 ________ ________ Total employees 620 612 ________ ________ Association (excluding temporary agency costs) £'000 £'000 Wages and salaries 3,905 2,635 Social security costs 316 268 Cost of defined contribution scheme 77 66 ________ ________ 4,298 2,969 ________ ________ Average number of full-time equivalent persons (including the
Chief Executive) employed during the year based on a standard working week of 36.5 hours.
Number Number Office staff 89 85 Maintenance staff 23 18 ________ ________ Total employees 112 103 ________ ________
Pension costs include the defined contribution scheme which was introduced following the closure of the final salary scheme in 2002. All contributions have been paid during the year in respect of the defined contribution scheme. The Group introduced auto enrolment on 1 November 2014.
Trident Housing Association Limited and its subsidiaries
Page | 65 Report and financial statements for the year ended 31 March 2019
Notes to the financial statements
8 Board members and executive directors The key management personnel of the Group comprise the Executive
Directors.
2019 2018 £'000 £'000 Executive Directors‟ emoluments 376 391 Compensation for loss of office 33 - Pension contributions 21 22 ________ ________ 430 413 ________ ________
The full time equivalent number of staff who received emoluments:
2019 2018 Number Number £60,000 to £70,000 - - £70,001 to £80,000 1 - £80,001 to £90,000 - 1 £90,001 to £100,000 - 2 £100,001 to £110,000 - - £110,001 to £120,000 1 1 £120,001 to £130,000 - - £130,001 to £140,000 1 - ________ ________ The Chief Executive is an ordinary member of the pension scheme. The pension scheme is a money purchase
pension scheme funded by annual contributions by the employer and the employee. No enhanced or special terms apply. There are no additional pension arrangements.
The emoluments of directors disclosed above (excluding pension contributions but including benefits in kind)
include amounts paid to:
2019 2018 £'000 £'000 The highest paid director - Chief Executive 132 118 ________ ________
Trident Housing Association Limited and its subsidiaries
Page | 66 Report and financial statements for the year ended 31 March 2019
Notes to the financial statements
8
Board members and executive directors (continued)
The following were members of the committees set out below and received remuneration for this as detailed
Remuneration
Audit & Assurance Committee
Remuneration & Nomination Committee
Safeguarding Committee
Group Board of
Management
Andrew Ballard 13,000 x x x
Yvonne Leishman 5,000 x x
Brian Carr 5,000 x x x
Rob Turton 3,000 x x
Katie Kershaw 5,000 x x
Colin Small 7,500 x x x
Nathan Talbott 5,000 x x
Simon Hatchman 5,000 x x Rosemarie Anderson 5,000 x x
Andrew Cooke 0 x x
John Morris 0 x x x x
53,500
Rob Turton retired during 2018/19, with Simon Hatchman and Andrew Cooke being appointed during the year.
9 Surplus on sale of properties
Shared ownership: further Other Total Total tranches Disposals 2019 2018 £'000 £'000 £'000 £'000 Proceeds of sales 421 154 575 423 Less: costs of sale (233) (72) (305) (296) ________ ________ ________ ________ Surplus on disposal of fixed assets 188 82 270 127 ________ ________ ________ ________
10 Income from investments
No dividends were received in 2019.
Trident Housing Association Limited and its subsidiaries
Page | 67 Report and financial statements for the year ended 31 March 2019
Notes to the financial statements
11 Interest and financing costs 2019 2018 Group and Association £'000 £'000 Bank loans 3,035 2,884 Indexation 40 22 ________ ________ 3,075 2,906 Less: Interest capitalised on construction of housing properties (35) (55) ________ ________ 3,040 2,851 ________ ________
The average rate used to capitalise interest in 2019 was 2.2% (2018: 2.1%).
12 Taxation
The Association and its subsidiary, Trident Reach the People Charity, both have charitable status and therefore are not liable to pay Corporation Tax. Trident Star Limited, a company limited by shares and incorporated under the Companies Act 2006, is subject to corporation tax. The company made a surplus in the year and believe that no tax is due on the surplus in Trident Star Limited due to Gift Aid and brought forward losses.
Trident Housing Association Limited and its subsidiaries
Page | 68 Report and financial statements for the year ended 31 March 2019
Notes to the financial statements
13 Tangible fixed assets - housing properties
General needs Shared ownership Supported Under Under Under Completed construction Completed construction Completed Construction Total Group and Association £'000 £'000 £'000 £'000 £'000 £'000 £'000 Cost At 1 April 2018 105,565 4,548 11,771 - 60,450 - 182,334 Reclassification - - - - - - Additions - 2,596 - - - - 2,596 Properties Acquired - - - - - - - Works to Existing Properties 1,265 - - - 154 - 1,419 Schemes completed 7,144 (7,144) - - - - - Disposal (80) - (147) - (97) - (324) Replacement of components (129) - - - (10) - (139) ________ ________ ________ ________ ________ ________ ________ At 31 March 2019 113,765 - 11,624 - 60,497 - 185,886 ________ ________ ________ ________ ________ ________ ________ Depreciation At 1 April 2018 23,391 - 754 - 5,084 - 29,229 Charge for the year 1,789 - 45 - 742 - 2,576 Accelerated depreciation on replaced
assets 44 - - - 2 - 46 Depreciation on disposals (141) - (31) - (16) - (188) ________ ________ ________ ________ ________ ________ ________ At 31 March 2019 25,083 - 768 - 5,812 - 31,663 ________ ________ ________ ________ ________ ________ ________
Net book value
At 31 March 2019 88,682 - 10,856 - 54,685 - 154,223
________ ________ ________ ________ ________ ________ ________
At 31 March 2018 82,174 4,548 11,017 - 55,366 - 153,105
________ ________ ________ ________ ________ ________ ________
Expenditure on works to existing properties comprised new components capitalised £553,426 (2018: £424,925) and capitalised improvements £865,530 (2018: £502,377). Major works charged to the income and expenditure account during the year totalled £108,187 (2018: £70,472).
Page | 69 Trident Housing Association Limited and its subsidiaries
Report and financial statements for the year ended 31 March 2019
Notes to the financial statements
14 Other Tangible fixed assets Leasehold Plant and office equipment Total Group £'000 £'000 £'000 Cost At 1 April 2018 1,574 12,964 14,538 Additions - 848 848 Disposals - (22) (22) ________ ________ ________ At 31 March 2019 1,574 13,790 15,364 ________ ________ ________ Depreciation At 1 April 2018 672 10,630 11,302 Charge for the year 54 705 759 Disposals - (21) (21) ________ ________ ________ At 31 March 2019 726 11,314 12,040 ________ ________ ________ Net book value At 31 March 2019 848 2,476 3,324 ________ ________ ________ At 31 March 2018 902 2,334 3,236 ________ ________ ________ Association Cost At 1 April 2018 1,540 12,121 13,661 Additions - 695 695 Disposals - (8) (8) ________ ________ ________ At 31 March 2019 1,540 12,808 14,348 ________ ________ ________ Depreciation At 1 April 2018 610 9,994 10,604 Charge for the year 23 645 668 Disposals - (7) (7) ________ ________ ________ At 31 March 2019 633 10,632 11,265 ________ ________ ________ Net book value At 31 March 2019 907 2,176 3,083 ________ ________ ________ At 31 March 2018 930 2,127 3,057 ________ ________ ________
Page | 70 Trident Housing Association Limited and its subsidiaries
Report and financial statements for the year ended 31 March 2019
Notes to the financial statements
15 Investment properties Group and Association 2019 2018 2017 £’000 £‟000 At 1 April 2018 1,330 1,320 Revaluation 50 10 _____ _____ 1,380 1,330 At 31 March 2019 _ __ _ __
Thirteen market rent properties are held at valuation. The fair value has been determined by external valuers JLL. The historic cost amount is £116k. In valuing investment properties, a discounted cash flow methodology was adopted with the following key assumptions: - Discount Rate 7.75% - 8.00% Level of Long Term Annual Rent Increase 1.00% - 3.00% The surplus on revaluation of investment property of £50k has been credited to the Statement of Comprehensive Income for the year.
16 Fixed asset investments – Group undertakings
As at 31 March 2019, the Association had the following Group undertakings:
Trident Reach the People Charity Trident Housing Association at all times will have a majority of the votes in Trident Reach the People Charity. Trident Reach the People Charity is a charitable company limited by guarantee and not having a share capital. It was incorporated on 28 November 2008 and registered as a charity on 16 April 2009. It commenced trading on 1 October 2009. Trident Star Limited Trident Housing Association is the sole shareholder in Trident Star Limited, a company limited by shares, incorporated on 27 March 2009. After a period of non-trading, the company was re-launched in 2012/13 as the commercial vehicle of the Group.
Page | 71 Trident Housing Association Limited and its subsidiaries
Report and financial statements for the year ended 31 March 2019
Notes to the financial statements
16 Fixed asset investments - Group undertakings (continued) All transactions between Group entities are carried out so that no party makes a surplus or deficit on the transaction. Trident Housing Association is the ultimate parent undertaking. During the year the Association had the following intra-group transactions with Trident Reach the People Charity, a non-regulated entity:
Trident Reach the People Charity to Trident Housing Association Intra-group transactions Allocation basis 2019 2018 £'000 £'000 Employment costs of staff at housing
schemes Payroll costs of scheme staff
1,068 1,147 Tenancy Support Service Direct cost of service 29 208 Central Control Department Payroll costs of staff 32 118 Development function Percentage of payroll costs - - Finance Staff Percentage of payroll costs - - ________ ________ 1,129 1,473 ________ ________
Trident Housing Association to Trident Reach the People Charity Intra-group transactions Allocation basis 2019 2018 £'000 £'000 Recharge of rent on care homes Rent agreement 256 286 Service costs relating to care homes Actual costs - - Depreciation of assets Percentage of depreciation
costs 33 48 Employment costs of Executive and
Central Services Percentage of payroll costs
396 394 CRB Checks Direct cost allocation - -
Provision of refurbishment services Labour and material costs 35 22 Office overheads Direct cost allocation 106 122 Vehicle costs Direct cost allocation 15 8 ICT systems Staff numbers 161 96 Audit and insurance brokerage Direct cost allocation 6 5 Consultancies Percentage of Payroll Costs - - ________ ________ 1,008 981 ________ ________
Page | 72 Trident Housing Association Limited and its subsidiaries
Report and financial statements for the year ended 31 March 2019
Notes to the financial statements
16 Fixed asset investments - Group undertakings (continued) During the year the Association had the following intra-group transactions with Trident Star, a non-regulated entity:
Trident Housing Association to Trident Star
Intra-group transactions Allocation basis 2019 2018 £'000 £'000 Property and Management Finance 18 11 Property 12 7 General Overheads 27 22
57 40
17 Stocks Group Group Association Association 2019 2018 2019 2018 £'000 £'000 £'000 £'000 Maintenance materials and tenant
amenities stocks 57 59 48 50
________ ________ ________ ________
18 Debtors Group Group Association Association 2019 2018 2019 2018 £'000 £'000 £'000 £'000 Amount falling receivable within one
year:
Rental debtors 4,335 4,261 4,335 4,261 Less: provision for bad debts (3,399) (2,846) (3,399) (2,846) ________ ________ ________ ________ 936 1,415 936 1,415 Intercompany debtors - - - 6 Trade and other debtors 562 1,416 257 293 Prepayments and accrued income 1,554 1,539 635 902 ________ ________ ________ ________ 3,052 4,370 1,828 2,616 ________ ________ ________ ________
Page | 73 Trident Housing Association Limited and its subsidiaries
Report and financial statements for the year ended 31 March 2019
Notes to the financial statements
19 Creditors: amounts falling due within one year
Group Group Association Association 2019 2018 2019 2018 £'000 £'000 £'000 £'000 Housing loans 3,305 3,205 3,305 3,205 Trade creditors 1,200 2,481 928 2,041 Rents & Service Charges Received
in Advance 1,291 1,034 1,291 1,034 Intercompany creditor - - 179 121 Other taxation and social
security costs 263 262 117 83 Other creditors 28 - - - Recycled capital grant fund - - - - Grant creditor 915 871 915 871 Accruals and deferred income 1,506 2,187 1,237 1,748
_________
________
________
________
8,508 10,040 7,972 9,103 ________ ________ ________ ________
20 Creditors: amounts falling due after more than one year 2019 2018 Group and Association £'000 £'000 Housing loans 76,986 78,821 Amortisation of loan fees (602) (706) Recycled Capital Grant Fund 687 573 Grant Creditor 58,891 59,319 ________ ________ 135,962 138,007 ________ ________
Loans are secured by specific charges on the housing properties of the group. The loans bear interest at fixed rates ranging from 0.5% to 12.6% or at variable rates calculated at a margin above the London Inter Bank Offer Rate.
Movements on recycled capital grant fund:
2019 2018 Group and Association £'000 £'000 Opening balance 573 1,414 Inputs to reserve: Grants recycled 114 74 Recycling of grant: New build - (915) ________ ________ Closing balance 687 573 ________ ________
Page | 74 Trident Housing Association Limited and its subsidiaries
Report and financial statements for the year ended 31 March 2019
Notes to the financial statements 20 Creditors: amounts falling due after more than one year (continued)
Movements in social housing grant:
2019 2018 Group and Association £'000 £'000 Opening balance 60,190 59,577 Received 599 683 Recycled (114) (74) Transfer from Recycled Capital Grant Fund - 915 Released (869) (911) ________ ________ Closing balance 59,806 60,190 ________ ________ The housing loans are repayable as follows: 2019 2018 £'000 £'000 Group and Association
Housing loans repayable by instalments: Between one and two years 3,319 3,292 Between two and five years 21,124 19,848 Repayable after five years 49,043 52,181 ________ ________ 73,486 75,321 Wholly repayable after five years 3,500 3,500 ________ ________ 76,986 78,821 ________ ________
The carrying values of financial assets and liabilities is summarised below: Group Group Association Association 2019 2018 2019 2018 £'000 £'000 £'000 £'000 Financial assets Measured at undiscounted amounts
receivable
Rent arrears and other debtors 936 1,415 936 1,415 Cash 6,269 7,283 4,904 6,129 Amounts due from related entities - - - 6
_________
________
________
________
7,205 8,698 5,840 7,550 ________ ________ ________ ________
Page | 75 Trident Housing Association Limited and its subsidiaries
Report and financial statements for the year ended 31 March 2019
Notes to the financial statements 20 Creditors: amounts falling due after more than one year (continued) Group Group Association Association 2019 2018 2019 2018 £'000 £'000 £'000 £'000 Financial liabilities Measured at amortised cost Loans payable 79,689 81,320 79,689 81,320 Measured at undiscounted amount
payable
Trade and other creditors 1,200 2,481 928 2,041 Amounts owed to related entities - - 179 121
_________
________
________
________
80,889 83,801 80,796 83,482 ________ ________ ________ ________
21 Provisions for liabilities
2019 2018
Sleep-in provision £'000 £'000 Opening balance 21 - Charged to income & expenditure - 21 Released to income & expenditure (21) - ________ ________ Closing balance - 21
________ ________
22 Share capital Association Association 2018 2018 £ £ At start of financial year 51 51 Issued during the year 3 - Cancelled during the year (46) - ________ ________ At end of financial year 8 51 ________ ________
Shares carry no right to a dividend or a distribution on winding up. Shareholders have a right to vote at the annual general meeting. When a shareholder ceases to be a shareholder their share is cancelled and becomes the property of the Association. All shares issued are fully paid. The par value per share is £1.
Page | 76 Trident Housing Association Limited and its subsidiaries
Report and financial statements for the year ended 31 March 2019
Notes to the financial statements
23 Operating leases
Group
At 31 March 2019 the Group was committed to make the following payments under non-cancellable operating leases in the year to 31 March 2019.
Land and buildings
Other Land and buildings
Other
2019 2019 2019 2018 £'000 £'000 £'000 £'000 Operating leases which expire: Within 1 year 321 42 420 87 Between 1 and 5 years 595 25 773 60 After more than 5 years 4,902 - 5,050 - ________ ________ ________ ________ 5,818 67 6,243 147 ________ ________ ________ ________
Association At 31 March 2019 the Association was committed to make the following payments under non-cancellable operating leases in the year to 31 March 2019.
Land and buildings
Other Land and buildings
Other
2019 2019 2018 2018 £'000 £'000 £'000 £'000 Operating leases which expire: Within 1 year 275 42 281 87 Between 1 and 5 years 575 25 734 60 After more than 5 years 4,867 - 5,012 - ________ ________ ________ ________ 5,717 67 6,027 147 ________ ________ ________ ________
24 Capital Commitments 2019 2018 Group and Association £'000 £'000 Capital expenditure contracted for but not provided for in
the financial statements 122 3,471 ________ ________
The Board expects none of the expenditure they have authorised to be fully financed by SHG, loan finance or other capital grants (2018: 88%).
Page | 77 Trident Housing Association Limited and its subsidiaries
Report and financial statements for the year ended 31 March 2019
Notes to the financial statements
25 Related party transactions
The Chief Executive Officer was also the company secretary of Shahjalal Housing Co-operative Limited until
he resigned on 30 April 2019. Trident Housing Association Limited had sales of £88,576 (2018: £91,917)
during the year. All transactions took place under normal commercial terms.
Intra-group transactions between regulated and non-regulated entities are detailed in note 16.
12 Fairlie House, Trident Close, Erdington, Birmingham, B23 5TBTel: 0121 633 4633 Fax: 0121 643 0260
Monday-Friday 9.00am - 4.00pmTel: 0121 643 6060 - out of office hours
Freephone (from BT landlines): 0800 111 4944 Mobile (reduced rate): 0300 123 1113www.tridentgroup.org.uk