Treasury Management

During the year, £3m of arranged borrowing facilities were drawn down to fund new development and provide a cash buffer at year end to deal with any liquidity issues arising from Covid-19.

The remaining £3m of the Triodos facility, along with the £12m undrawn facility with Santander, will provide enough capital along with existing cash balances, to fund most of the remaining development programme set out in the Business Strategy 2019-2024.

An additional £1.3m of facilities will need to be secured by 2023 although there is no immediate need to put this funding in place as most of the programme is not yet contracted.

Performance against the interest cover loan covenant, as shown below, has increased this year due to 2018/19 cost pressures and planned higher expenditure on capital components, in particular air source heat pumps (ASHPs).

Covenant performance on interest cover is projected to improve further to around 200% in 2020/21.