As a non-profit organisation, any surpluses that are made from day-to-day activities are reinvested into providing new affordable rural homes and improving existing ones.
This is supplemented by surpluses generated from homes for sale, providing even greater capacity to deliver more affordable homes, whilst also contributing towards meeting the full context of local demand.
Recognising the need to generate surpluses to make public subsidy go further will enable English Rural to continue to grow organically and sustainably.
Annual Surplus
>> Surplus for the year was £709k (2021: £1.1m) The surplus is lower this year compared to last year, mainly due to higher repair costs and a £166k gain last year on disposal of some land.
Operating margins for 2021/22 are lower than expected due mainly to higher repair costs. Higher inflationary assumptions have been used in both the 2022/23 budget and 30-year financial business plan.
Cash Balances
>> Cash balances stand at £2.5m (2021: £2.1m) Cash balances were maintained at a level to ensure that on-going operational and development costs could be financed efficiently. Additional loans of £2.5m were drawn down to fund £4.4m invested in building new homes and component replacements for existing homes. The balance is funded by capital grants, sales receipts and cash generated from existing operating activities.
Loan Facilities
>> Loan facilities of £13.5m (2021: £16m) are in place to fund our projected development and investment programme over the coming years. To ensure that sufficient loans are in place to fund the next 5-year development programme, an additional £20m of new loan facilities have been agreed and will be in place by the end of September 2022.
