Treasury Management

Undrawn, fully secured, borrowing facilities of £16m are available through both Triodos (£4m) and Santander (£12m).

These, together with existing cash balances, will provide enough to fund the development programme, set out in the updated 2021-26 Business Strategy, up to mid-2024.

Thereafter, new facilities of circa £22m will need to be available to fund the remaining programme and to refinance the £12m Santander facility which expires in August 2024.

With the return to positive rent increases, performance against the interest cover loan covenant, as shown below, has improved this year:

>> The rent increase along with the increase in operating surplus generated by additional properties coming on stream, has helped improve the operating surplus from £1.8m to £2.2m.

>> In addition, interest costs have fallen from last year as interest rates remain at historically low levels and £1.8m of debt was repaid during the year. The latter, as a result of expected income received from property sales, both open market and low cost home ownership.

>> Gearing has fallen as a result of the £1.8m repayment of existing debt as highlighted above.