|
| |
|
Group |
|
Group |
| |
 |
2004 |
|
2003 |
| |
|
£000 |
|
£000 |
| 18. Reconciliation of operating
profits to net cash inflow from operating activities |
| Income before interest and taxation |
|
3,460 |
|
3,310 |
| Depreciation charges |
|
13 |
|
15 |
| Amortisation of investment |
|
5 |
|
20 |
| Increase in debtors |
|
75 |
|
47 |
| (Decrease) Increase in creditors |
|
(124) |
|
239 |
| Net cash inflow from operating activities |
|
3,429 |
|
3,631 |
| |
|
At 1.4.03 |
Cash
Flows |
Other Non-cash Changes |
At 31.3.04 |
| |
|
£000 |
£000 |
£000 |
£000 |
| 19. Analysis of changes in net
debt |
| Cash in hand and at bank |
|
946 |
1,100 |
- |
2,056 |
| |
|
|
|
|
|
| Debt due after 1 year |
|
(1,462,421)
|
- |
15,146 |
(1,447,275) |
| Debt due within 1 year |
|
(23,786) |
(7,077) |
(24,886)
|
(41,595) |
| |
|
|
|
|
|
| Short-term Deposits |
|
10,784 |
(927) |
-
|
9,857 |
| |
|
(1,474,477)) |
(7,260) |
(9,740) |
(1,476,957) |
| |
|
Group |
|
Group |
| |
|
2004 |
|
2003 |
| |
|
£000 |
|
£000 |
| 20. Commitments |
| At the end of the year the Group had annual commitments
under non-cancellable operating leases as follows: |
|
|
|
|
| |
|
|
|
|
| Operating lease expiring: |
|
|
|
|
| - Within 1 year |
|
56 |
|
- |
| - In the 2nd to 5th year inclusive |
|
7 |
|
70 |
| |
|
63 |
|
70 |
| |
|
Group |
|
Group |
| |
|
2004 |
|
2003 |
| |
|
£000 |
|
£000 |
| 21. Disclosures under FRS 13 |
| Details and Maturity Profile of Financial Assets |
|
|
|
|
| |
|
|
|
|
| Loans to RSLs |
|
1,452,003
|
|
1,449,339 |
| Securitised Assets |
|
36,143 |
|
36,143 |
| |
|
1,488,146
|
|
1,485,482 |
| |
|
|
|
|
| Due within one year |
|
41,595 |
|
23,876 |
| Due between one and two years |
|
13,131 |
|
10,333 |
| Due between two and five years |
|
51,694 |
|
78,415 |
| Due in over five years |
|
1,381,726
|
|
1,372,858 |
| |
|
1,488,146
|
|
1,485,482 |
| |
|
| Interest rate risk profile of financial assets and financial
liabilities |
|
| |
|
2004 |
|
2004 |
| |
|
Financial |
|
Financial |
| |
|
Liabilities |
|
Assets |
| Fixed Rate |
|
1,370,423
|
|
1,370,422
|
| Floating Rate |
|
117,724
|
|
117,724
|
| No interest payable |
|
723
|
|
-
|
| |
|
1,488,870
|
|
1,488,146 |
| |
|
|
|
|
| The effective interest rates during the year were
between 3.66 % and 17.28 %. The weighted average interest rate on
both fixed financial liabilities and fixed financial assets is 8.4
%. The weighted average period for which interest rates are fixed
is 17.53 years.
The interest rates on those group borrowings which are at floating
rates are determined by the prevailing Sterling LIBOR (London Interbank
Offered Rate) for the relevant maturity at the time of determination
plus an agreed margin.
The fair value of the net of financial assets and liabilities is
nil.
All assets and liabilities are denominated in œ sterling.
The financial liability of £723,000 represents the subordinated
loan disclosed within Note 15. The liability is matched by an equivalent
level of short term deposit with the interest thereon being returned
to the RSLs. |
| |
|
|
|
|
| |
|
2004 |
|
2003 |
| |
|
£000 |
|
£000 |
| Undrawn committed borrowing facilities are as follows: |
| |
|
|
|
|
| Within one year |
|
- |
|
9,350 |
| Between one and two years |
|
4,000 |
|
6,000 |
| Over two years |
|
335,590 |
|
235,550 |
| |
|
339,590 |
|
250,900 |
| |
|
|
|
|
| Facilities will be drawn only when corresponding drawdowns
are requested by the RSLs. |
| 22. Disclosures under FRS 17: Accounting
for pensions |
| THFCS participates in the Social Housing Pension
Scheme (SHPS). SHPS is a multi-employer, defined benefit scheme.
The Scheme is funded and contracted out of the state scheme.
The last formal valuation of the scheme was performed at 30 September
2002 by a professionally qualified actuary using the “projected
unit credit” method. The market value of the Scheme’s
assets at the last valuation date was £650 million.
THFCS paid contributions at the rate of 10.6% during the accounting
period. Member contributions varied between 2.0% and 5.0% depending
on their age.
It is not possible to identify the share of underlying assets and
liabilities belonging to individual participating employers.
Owing to the nature of the Scheme, the profit and loss account
charge for the period under both SSAP24 and FRS17 represents the
employer contribution payable: the costs for the year were £38,037
(2003: £27,847).
Financial assumptions
The financial assumptions underlying the 1999 valuation were as follows:
| Rate of return on future contributions |
6.6% pa |
| Rate of return on accumulated assets |
7.2% pa |
| Rate of salary increases |
4.5% pa |
| Rate of pension increases |
2.5% pa |
| Rate of price inflation |
2.5% pa |
The accumulated assets of the Scheme were assumed to earn the same
return as if they had been invested in a portfolio comprising 100%
UK equities for non-pensioner liabilities and 25% UK equities /75%
gilts for pensioner liabilities.
The valuation revealed a shortfall of assets compared with the
value of liabilities of some £117 million (equivalent to a
past service funding level of 85%). The long-term joint contribution
rate required from employers and members to meet the cost of future
benefit accrual was assessed as 15% of pensionable salaries.
Following consideration of the results of the actuarial valuation
it has been agreed that, with effect from 1 April 2004 that
the standard employer contribution rate which the group pays will
be increased from 10.6% to 11.7% of pensionable salaries and member
contributions will also be increased by 1.1% from 2.0%-5.0% to 3.1%-6.1%
of pensionable salaries depending on age.
If the valuation assumptions are borne out in practice this pattern
of contributions should be sufficient to eliminate the past service
deficit by 31 March 2017.
The next valuation will be as at 30 September 2005. |
|
 |
