Treasury Management

Undrawn, fully secured, borrowing facilities of £29m are available through Santander.

This, together with existing cash balances, will provide enough to fund the 5-year investment programme, set out in the latest Business Strategy, up to early 2024.

Given the potential for higher interest rates in the longer term, the organisation continues to maintain significant flexibility within development programme through the monitoring of commitment levels.

Performance against the interest cover loan covenant, as shown above, has reduced this year:

>> Planned increases in both repair costs and component replacements have suppressed net operating cashflows.

>> Gross interest costs increased during the year, reflecting the steady increase in borrowing and rates and interest cover reduced as a result. For covenant purposes, under the current Business Plan, interest cover for the coming five years is expected to be maintained in the range of 120% -150%.

>> Gearing has increased slightly, reflecting the increase in net debt during the year.