Financial Statements - RNS · PDF fileAct 2014 (Registered ... Financial Reporting Standard...

RP number: LH3926

Financial Statementsfor the year ended 31 March 2016

Places for People Living+ LimitedFinancial StatementsFor the year ending 31 March 2016

CONTENTS

2 Board of Management, Executives and Advisers

3 Report of the Board

5 Report of the Independent Auditor

6 Statement of Comprehensive Income

7 Statement of Financial Position

8 Statement of Changes in Reserves

9 Statement of Cash Flows

10 Notes to the Financial Statements

1

Places for People Living+ LimitedBoard of Management, Executives and AdvisersFor the year ending 31 March 2016

Board of Management Non Executives

C Phillips ChairmanA Davis (appointed 1 October 2015)C GarnerN HopkinsJ LloydB Dean (resigned 30 September 2015)

ExecutivesGroup Chief Executive D CowansManaging Director, Living+ D Marriott-LaveryGroup Director, Operations K KeaneGroup Financial Controller A Winstanley

Secretary C Martin

Registered Office 80 CheapsideLondon EC2V 6EE

Bankers Co-operative Bank Plc Barclays Bank Plc147 Church Street 38 FishergatePreston PrestonPR1 3UD PR1 2AD

Registered Auditors KPMG LLPArlington Business ParkThealeReadingRG7 4SD

Registration of the Association The Association is registered under the Cooperative and Community Benefit Societies Act 2014 (Registered number 20014R) and is registered under the Housing and Regeneration Act 2008 (Registered number LH3926). It is also affiliated to the National Housing Federation and has charitable status.

2

Places for People Living+ LimitedReport of the BoardFor the year ending 31 March 2016

The Board is pleased to present its report and the financial statements for the year ended 31 March 2016.

Places for People Living+ Limited is a charitable registered provider of social housing which focuses on care and supported housingactivities.

Objectives

Places for People Living+ Limited is engaged in the development and management of care and supported housing activities for the Placesfor People Group ("the Group"). It undertakes relevant activities to ensure the future delivery of care and support services to tenants. Review of the year

The total turnover was £43.2m (2015: £46.8m) including £37.4m (2015: £36.7m) from the letting of housing accommodation and otherincome of £5.7m, largely comprising of supporting people income (other income 2015: £10.1m).

The operating surplus for the year was £7.0m (2015: £8.2m).

At the end of the year the net book value of housing properties amounted to £320.8m (2015: £239.2m). The revenue reserves were£121.5m (2015: £114.1m).

All property maintenance services were provided by Places for People Homes Limited and development services were provided by Placesfor People Developments Limited.

The Association’s key performance indicators are aligned with those of the ultimate parent undertaking, Places for People Group, and areincluded in the consolidated Group accounts.

The Association’s strategy is aligned to that of the parent company, Places for People Group Limited, as such the Financial ViabilityStatement and Value for Money information appropriate to the Association can be found in the Group financial statements that can beobtained from the Group’s registered office at 80 Cheapside, London, EC2V 6EE

Charitable and political donations

During the year Places for People Living+ Limited made no charitable donation to any Group company (2015: £nil). There were no political donations (2015: £nil).

Going concern

After making appropriate enquiries, the Board confirms it has a reasonable expectation that Places for People Living+ Limited has adequateresources to continue in operational existence for the foreseeable future. Accordingly it continues to adopt the going concern basis inpreparing the financial statements.

The Places for People Living+ Limited Board operates to a business plan and budget which has been approved by the Group Board ofDirectors. Places for People Group exercises control over Places for People Living+ Limited through an Independence and ResponsibilitiesAgreement, a Service Level Agreement and powers granted to the Group in Places for People Living+ Limited rules.

The Group Board has delegated certain matters to committees of the Board of the Places for People Group. Reporting to the Group Boardon Group issues are the Audit & Risk Committee, Nominations & Governance Committee and Remuneration Committee.

Internal control and risk managementThe Group Board has reviewed the effectiveness of the system of internal control for the year ended 31 March 2016, and up to the date ofsigning these financial statements. It has not identified any weaknesses which resulted in material losses or contingencies or otheruncertainties which require disclosure in the financial statements.

The view of the External Auditor, KPMG LLP

The position in relation to controls which are within the scope of the auditor’s terms of engagement is confirmed at the conclusion of eachaudit. Any issues arising from interim audit work are also reported to the Audit & Risk Committee. No material issues were reported duringthe year.

In addition, substantial work has been undertaken to ensure that the Audit & Risk Committee’s structure and activities comply with therecommendations of the UK Corporate Governance Code. Places for People Living+ Limited is a subsidiary of Places for People Group.Places for People Group has adopted the UK Corporate Governance Code and the required disclosures are included in the consolidatedfinancial statements which are available from the address in note 23.

3

Places for People Living+ LimitedReport of the BoardFor the year ending 31 March 2016

Board

The persons who served on the board throughout the year are shown on page 2.

Share capital

The share capital of the Association is held by Places for People Homes (800 shares) and 6 individual shareholders.

Statement of Disclosure to the Auditors

At the time of approval of this report:

a) so far as the board members are aware, there is no relevant audit information of which the Association’s auditor is unaware, and

b) the board members have taken all steps that they ought to have taken as board members in order to make themselves aware of anyrelevant audit information and to establish that the Association’s auditor is aware of that information.

Statement of board's responsibilities in respect of the board's report and the financial statements

The board is responsible for preparing the board's report and the financial statements in accordance with applicable law and regulations.

Co-operative and Community Benefit Society law requires the board to prepare financial statements for each financial year. Under thoseregulations the board have elected to prepare the financial statements in accordance with UK Accounting Standards, including FRS 102 TheFinancial Reporting Standard applicable in the UK and Republic of Ireland.

The financial statements are required by law to give a true and fair view of the state of affairs of the Association and of its surplus or deficit for that period.

In preparing these statements, the board is required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards and Statement of Recommended Practice have been followed, subject to any materialdepartures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Association will continue inbusiness.

The board is responsible for keeping proper books of account that disclose with reasonable accuracy at any time the financial position ofthe Association and enable them to ensure that its financial statements comply with the Co-operative and Community Benefit Societies Act2014, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2015. Theboard has general responsibility for taking such steps as are reasonably open to it to safeguard the assets of the Association and toprevent and detect fraud and other irregularities.

The board is responsible for the maintenance and integrity of the corporate and financial information included on the Association's website.Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

C Martin Secretary 19 July 2016

4

Places for People Living+ LimitedReport of the Independent auditorFor the year ending 31 March 2016

Independent auditor’s report to Places for People Living+ Limited

· give a true and fair view, in accordance with UK Generally Accepted Accounting Practice, of the state of affairs of theAssociation as at 31st March 2016 and of its income and expenditure for the year then ended;

· comply with the requirements of the Co-operative and Community Benefit Societies Act 2014; and

· have been properly prepared in accordance with the Housing and Regeneration Act 2008 and the Accounting Direction forPrivate Registered Providers of Social Housing 2015.

· the Association has not kept proper books of account; or

· the Association has not maintained a satisfactory system of control over transactions; or

· the financial statements are not in agreement with the Association’s books of account; or

· we have not received all the information and explanations we need for our audit.

Chartered Accountants Arlington Business ParkThealeReadingRG7 4SD

for and on behalf of KPMG LLP, Statutory Auditor

We have audited the financial statements of Places for People Living+ Limited for the year ended 31st March 2016 set out on pages 6 to 22. The financial reporting framework that has been applied in their preparation is applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

This report is made solely to the Association in accordance with section 87 of the Co-operative and Community Benefit Societies Act 2014 and section 128 of the Housing and Regeneration Act 2008. Our audit work has been undertaken so that we might state to the Association those matters we are required to state to it in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Association as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of the Board and auditor

As more fully explained in the Statement of Board’s Responsibilities set out on page 4, the Association’s Board is responsible for the preparation of financial statements which give a true and fair view. Our responsibility is to audit, and express an opinion on, the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statements

A description of the scope of an audit of financial statements is provided on the Financial Reporting Council’s website atwww.frc.org.uk/auditscopeukprivate.

Opinion on financial statements

In our opinion the financial statements:

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Co-operative and Community Benefits Societies Act 2014require us to report to you if, in our opinion:

Chris Wilson

5

Places for People Living+ LimitedStatement of Comprehensive IncomeFor the year ending 31 March 2016

2016 2015Notes £'000 £'000

Turnover 2 43,177 46,794

Cost of sales 2 (90) (509)

Operating costs 2 (36,036) (38,076)

Operating surplus before interest 2 7,051 8,209

Surplus on sale of fixed assets 4 125 72

Interest receivable and similar income 7 808 751

Interest payable and similar charges 8 (1,090) (1,178)

Surplus and total comprehensive income for the year 9 6,894 7,854

The Association has not acquired or discontinued activities other than those disclosed above.

C Phillips A Winstanley C MartinChairman Board Member Secretary

The notes on pages 10 to 22 form and integral part of these financial statements.

6

Places for People Living+ LimitedStatement of Financial PositionAs at 31 March 2016

2016 2015Notes £'000 £'000

Fixed assetsHousing properties - depreciated cost 11 320,810 239,236

Investments 12 7,540 41,250

Other fixed assets 13 14 470

Total fixed assets 328,364 280,956

Current assetsStock 14 2,799 303Debtors 15 2,749 1,263Cash at bank and in hand 2,932 3,397

8,480 4,963

Creditors - amounts falling due within one year 16 (9,241) (6,707)

Net current liabilities (761) (1,744)

Total assets less current liabilities 327,603 279,212

Creditors - amounts falling due after more than one year 17 183,076 141,566

Capital and reservesNon-equity share capital 19 1 1Revenue reserves 121,491 114,597Restricted reserves 171 184Revaluation reserves 22,864 22,864

Total capital and reserves 144,527 137,646

327,603 279,212

The financial statements on pages 6 to 22 were approved by the Board on 19 July 2016 and weresigned on its behalf by:

C Phillips A Winstanley C MartinChairman Board Member Secretary

7

Places for People Living+ LimitedStatement of Changes in ReserveFor the year ending 31 March 2016

Income & Expenditure Restricted Revaluation TotalReserve Reserve Reserve Reserves

£'000 £'000 £'000 £'000

Balance at 1 April 2015 as previously reported 108,460 184 23,391 132,035

Effects of adoption of FRS 102 6,138 - (527) 5,611

Balance at 1 April 2015 as previously reported 114,598 184 22,864 137,646

Total Comprehensive income for the year

Surplus for the year 6,894 - - 6,894

Restricted reserve movement - (13) (13)

Balance at 31 March 2016 121,492 171 22,864 144,527

8

Places for People Living+ LimitedStatement of Cash FlowsFor the year ending 31 March 2016

2016 2015£'000 £'000

Net cash generated from operating activities (see note 1) 8,367 2,157

Cash flow from investing activitiesAdditions to housing properties (57,123) (1,873)Proceeds from sale of tangible fixed assets 496 618Loans advanced to related undertakings (122,253) (91,750)Loans repaid by related undertakings 155,950 82,950Interest received 808 751

Cash flow from financing activites

Repayments of borrowings (1,177) (1,109)New loans 15,578 - Interest paid (1,111) (1,194)

(465) (9,450)

3,397 12,847

2,932 3,397

Surplus for the year 6,894 7,854

Depreciation and impairment of tangible fixed assets 3,501 3,397Appreciation of fixed asset investments - (6)Decrease/(increase) in stock (1,992) 445Decrease/ (increase in trade and other debtors (1,485) 778Increase/(decrease) in trade and other creditors 3,136 (8,801)Gain in sale of fixed assets (125) (76)Grant Amortisation (1,844) (1,862)Interest payable 1,090 1,179Interest receivable (808) (751)

8,367 2,157Cash flow from operating activities

The notes on pages 10 to 22 form and integral part of these financial statements.

Net change in cash and cash equivalents

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of the year

Note 1

Adjustments for non-cash items to reconcile surplus for the year to net cash generated from operating activities

9

Places for People Living+ LimitedNotes to the Financial StatementsFor the year ending 31 March 2016

1. ACCOUNTING POLICIES

Basis of Preparation

Turnover

VAT

Judgement and estimates that management has made in applying the above accounting regulations are included in the relevantaccounting policies.

The financial statements of the Association are prepared in accordance with Financial Reporting Standard 102 - the applicablefinancial reporting standard in the UK and Republic of Ireland (FRS 102) and the Statement of Recommended Practice Accounting byRegistered Housing Providers 2014 and comply with the Accounting Direction 2015 for Registered Providers of Social Housing.

The financial statements of the Association are prepared on a going concern basis. The principal accounting policies adopted in thepreparation of the financial statements are set out in note 1 below.

The Association is registered under the Cooperative and Community Benefit Societies Act 2014 and is registered with the Homes andCommunities Agency (HCA) as a housing provider.

FRS 102 allows certain first-time adoption exemptions from the full requirements of FRS 102 in the transition period. The followingexemptions have been taken in these financial statements:

· Fair value as deemed cost – The fair value at transition date has been used as deemed cost for office property.

The Association's ultimate parent undertaking, Places for People Group Limited, includes the Association in its consolidated financialstatements. The consolidated financial statements of Places for People Group Limited are prepared in accordance with FRS 102 andare available to the public and may be obtained from Places for People Group Limited, 80 Cheapside, London, EC2V 6EE. In thesefinancial statements, the Association is considered to be a qualifying entity for the purposes of this FRS and has applied theexemptions available under FRS 102 as below.

As the consolidated financial statements of the ultimate parent undertaking, Places for People Group Limited, include the equivalentdisclosures, the Association has also taken the exemptions under FRS 102 available in respect of financial instruments and has notprovided disclosures otherwise required by FRS 102.11 Basic Financial Instruments and FRS 102.12 Other Financial Instrument Issuesin respect of financial instruments not falling within the fair value accounting rules of Paragraph 36(4) of Schedule 1.

Turnover represents rental income and service charge income receivable, fees and grants from local authorities and the Homes andCommunities Agency.

Charges for support services funded under Supporting People are recognised as they fall due under the contractual arrangementswith Administering Authorities.

The majority of the Association's turnover is exempt from VAT. Certain activities are liable to VAT and give rise to a small amount ofVAT recovery. Costs are stated including irrecoverable VAT.

Significant estimates and critical judgements

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1. ACCOUNTING POLICIES

Depreciation

Assets Depreciation period (years)Rented housing & commercial properties:Kitchens 20Bathrooms 20Boilers 15External windows & doors 30Roofs 45Fire safety systems 20Fencing 30Digital TV aerials 10Lifts 20Social Alarms From 20-40Surveys 15Initial and replacement scheme assets From 1 to 5Other elements (new build) 100Other elements (rehab) 80Other elements (Leasehold) Lesser of term of lease or 100 yearsShared Ownership housingAll elements (new build) 100All elements (rehab) 80All elements (leasehold) Lesser of term of lease or 100 yearsOther Fixed Assets:Offices (new build) 100Offices (rehab) 80Office refurbishment From 10-20Offices (long leasehold) Lesser of term of lease or 100 yearsOffices (short leasehold) Terms of leasePlant & Equipment 5Cars and commercial vehicles 5Computer hardware, software and infrastructure From 5-15

Housing properties and land

Impairment

Housing properties are stated at depreciated cost and land is stated at cost. The cost of properties is their purchase price together with costs of acquisition and improvements, including related development costs and interest payable. Properties purchased for improvement for sale, together with properties held for sale, are treated as current assets and all other social housing properties are treated as tangible fixed assets. Properties held as current assets are stated at the lower of cost and estimated selling price less costs to sell.

Fixed assets, other than freehold land, are depreciated at rates calculated to reduce the net book value of each componentelement to its estimated residual value, on a straight line basis, over the expected remaining useful economic life of thecomponent. Freehold land is not depreciated. The estimated lives of assets and components is as shown in the table below:

The Association assess at each reporting date whether there is an indicator of impairment. Where such an indicator exists, the Association performs and impairment assessment at the cash-generating unit level. This involves comparing the carrying value of the cash-generating unit to its recoverable amount.

When the carrying value of a cash generating unit exceeds its recoverable amount, the impairment loss is charged to the Statement of Comprehensive Income as expenditure.

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1. ACCOUNTING POLICIES (Continued)

Impairment (continued)

Social housing properties are held for their service potential and are not held solely for the cash inflows generated. As such, there is norequirement to perform an impairment assessment on initial recognition of those schemes that are developed or acquired and completed inaccordance with approved Group policies and planned scheme appraisals.

When undertaking impairment reviews to assess whether assets or cash generating units are held at the lower of cost or recoverable amount,recoverable amount is defined as its value in use. Recoverable amount is normally assessed using discounted cash flow techniques for allanticipated cash flows to generate a net present value.

Costs are assigned to all schemes on a detailed basis, including mixed tenure schemes.

The Association defines Cash Generating Units as schemes except where its schemes are not sufficiently large enough in size and it is moreappropriate to consider individual assets. This approach supports effective appraisal of schemes as it aligns with management and operationof the business.

Social Housing Grant (SHG) and other capital grants

Where SHG or Housing Association Grant is retained following the disposal of property, it is shown under the disposal proceeds and recycledcapital grant funds in creditors. These funds will be used for the provision and improvement of new social housing for rent and sale.

Social housing grant (SHG) is initially recognised at fair value as a long term liability, specifically as deferred grant income and releasedthrough the income and expenditure as turnover income over the life of the housing property components in accordance with the accrualmethod applicable to registered providers of social housing accounting for housing properties at cost.

On disposal, SHG associated with those properties is transferred to either the Recycled Capital Grant Fund (RCGF) or the Disposal ProceedsFund (DPF) until the grant is recycled or repaid to reflect the existing obligation under the social housing grant funding regime.

Capitalisation of interest and development overheadsInterest is capitalised on loans financing schemes in development up to their completion. This is calculated by reference to the Association’scost of borrowing and the development costs.Administration costs relating to development activities are capitalised based on an apportionment of the staff time directly spent on thisactivity.

Special needs housing managed by voluntary agents on behalf of the Association

Due to the nature of the relationship between the Association and its managing agents, these financial statements exclude the financialperformance of projects managed by our agents.

Pensions

Employees joining the Association have the option of joining a Stakeholder scheme to which the company contributes. The costs of thestakeholder scheme are accounted for in the year in which they occur.

Operating leases

Costs in respect of operating leases are charged to the income and expenditure account on a straight line basis over the lease term.

Restricted reservesThe Grace Gillett Legacy represents a bequest to the Association for future support of a scheme in Bristol.

StockAssets held for sale, identified for disposal on the basis that they are no longer economically viable.All property held within stock is subject to regular appraisal to confirm the assets are recoverable at least at the carrying value.

Tenant Arrears, Trade and other debtors

Tenant Arrears, Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Subsequent to initialrecognition they are measured at amortised cost using the effective interest method, less any impairment losses.

Trade and other creditors

Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition theyare measured at amortised cost using the effective interest method.

Interest-bearing borrowings

Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses.

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2.

Turnover Cost of salesOperating

costs

Operating surplus/ (deficit)

£'000 £'000 £'000 £'000

Social housing lettings (note 3) 37,432 - (30,420) 7,012

Other social housing activitiesSocial housing property sales - (90) - (90)Charges for support services 4,954 - (4,604) 350Charges for domiciliary care services 784 - (772) 12Other - - (161) (161)

Total 43,170 (90) (35,957) 7,123

Non social housing activities 7 - (79) (72)

Total 43,177 (90) (36,036) 7,051

Turnover Cost of salesOperating

costs

Operating surplus/ (deficit)

£'000 £'000 £'000 £'000

Social housing lettings (note 3) 36,675 - (29,553) 7,122

Other social housing activitiesSocial housing property sales 1,827 (509) (316) 1,002Charges for support services 5,418 - (4,945) 473Charges for domiciliary care services 2,865 - (3,245) (380)

Total 46,785 (509) (38,059) 8,217

Non social housing activities 9 - (17) (8)

Total 46,794 (509) (38,076) 8,209

Analysis of turnover2016 2015£'000 £'000

Social housing turnover 43,170 46,785

Non-social housing activitiesOther 7 9Total 43,177 46,794

2016

TURNOVER, COST OF SALES, OPERATING COSTS AND OPERATING SURPLUS

2015

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3. INCOME AND EXPENDITURE FROM SOCIAL HOUSING LETTINGS

2015Supported

housing and housing for older people Other Total Total

£'000 £'000 £'000 £'000Income from social housing lettings activities

Rent receivable net of identifiable service charges 18,971 - 18,971 18,361Service charge income 10,324 - 10,324 10,044Amortised government grants 701 1,143 1,844 1,861Other revenue grants - - - 3Other income 625 5,668 6,293 6,406

Turnover from social housing lettings 30,621 6,811 37,432 36,675

Expenditure on social housing lettings activities

Management costs (6,603) - (6,603) (5,702)Service charge costs (9,655) (3) (9,658) (9,348)Routine maintenance (2,751) (1) (2,752) (3,724)Planned maintenance (2,054) (40) (2,094) (1,580)Major repairs expenditure (124) (15) (139) (154)Bad debts (196) - (196) (261)Depreciation on housing assets (1,276) (1,894) (3,170) (3,168)Impairment of assets (298) (27) (325) (161)Intra group property recharges (4,332) - (4,332) (4,332)Other costs (1,151) - (1,151) (1,123)

Total expenditure on lettings (28,440) (1,980) (30,420) (29,553)

Operating surplus 2,181 4,831 7,012 7,122

Void losses (825) - (825) (938)

4. PROFIT ON SALE OF FIXED ASSETS

2016 2015£'000 £'000

Proceeds 542 632Carrying value (391) (528)Sales costs (26) (32)

125 72

2016

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5. DIRECTORS' EMOLUMENTS

Included within operating costs is a share of the salary costs of the Board Members.

6. EMPLOYEE INFORMATION2016 2015No. No.

The average number of employees expressed as full timeequivalents employed during the year was:Central administration services 6 17 Care services 410 472

416 489

2016 2015£'000 £'000

Staff costs (for the above persons):

Wages and salaries 7,735 9,516Severance pay 400 81Social security costs 524 648Other pension costs 553 574

9,212 10,819

The number of senior staff who received salaries in the following ranges was:2016 2015No. No.

£60,000 - £69,999 2 1£80,000 - £89,999 1 1£120,000 - £129,999 1 1

The remaining Board Members' emoluments during the year were met by Places for People Group Limited

The ultimate Group parent, Places for People Group Limited (the Group), has determined that subsidiary governance is achievedthrough functional management arrangements.

The Group has created posts for functional managers, whose responsibilities may cover more than one Group member.

Average number of employees is calculated by ascertaining for each calendar month in the financial year, the number of persons,by category, employed by the company. The monthly numbers are then added together and divided by the number of months inthe financial year.

A non executive director was paid £7,000 (2015 £13,000) in respect of services relating to Places for People Living+ Limited.

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7. INTEREST RECEIVABLE AND SIMILAR INCOME2016 2015£'000 £'000

Interest receivable on loans to related undertakings 775 725

Interest receivable on cash deposits 33 26

808 751

8. INTEREST PAYABLE AND SIMILAR CHARGES2016 2015£'000 £'000

In respect of housing and bank loans 1,101 1,175

In respect of Recycled Capital Grant Fund 5 3

Less: Capitalised interest (16) -

1,090 1,178

9. SURPLUS ON ORDINARY ACTIVITIES BEFORE AND AFTER TAXATION

2016 2015£'000 £'000

Depreciation 3,176 3,206Impairment 325 161

Auditors' remuneration 19 19

Payments under operating leases:Motor vehicles 51 53

10. TAXATION

The surplus on ordinary activities before and after taxation is stated after charging:

The Association has charitable status and is exempt from corporation taxation under the provisions of Section 505 of the Incomeand Corporation Taxes Act 1988 therefore there is no corporation tax payable in either 2015 or 2014.

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11. HOUSING PROPERTIES

Completed housing

properties

Completed LSE & shared

ownership housing

properties

Housing properties in the course of construction

Total housing properties

£'000 £'000 £'000 £'000CostAt 1 April 2015 267,555 6,981 1,996 276,532Additions - - 85,477 85,477Change of tenure 6 - (27) (21)Transfer to completed schemes 84,068 - (84,068) - Transfer to sales account on disposal - (412) (412)At 31 March 2016 351,629 6,569 3,378 361,576

Depreciation and ImpairmentAt 1 April 2015 (36,621) (675) - (37,296)Charge for year: Depreciation (3,098) (72) - (3,170) Impairment (325) - - (325)Change of tenure:

Depreciation (16) - - (16)Eliminated on disposal: Depreciation - 41 - 41At 31 March 2016 (40,060) (706) - (40,766)

Net book value at 31 March 2016 311,569 5,863 3,378 320,810

Net book value at 1 April 2015 230,935 6,306 1,996 239,236

LSE denotes Leasehold Schemes for the Elderly.2016 2015

Housing properties comprise, at cost: £'000 £'000

Freehold 305,575 239,228 Long leasehold 54,715 37,283 Short leasehold 1,286 21

361,576 276,532

2016 2015Additions to completed properties include the following: £'000 £'000Housing properties comprise: Completed properties acquired 78,866 - Properties newly built / rehabilitated - 1,295 Major Works to existing properties 5,202 1,459 Other works - 3

84,068 2,757

Additions to housing properties in the course of construction during the year include an apportionment of staff time directly spent on the administration of development activities amounting to £48,000, (2015: £65,000).

The UK Government’s decision to reduce social housing rent for registered providers was considered to meet the criteria to trigger a detailed impairment review of relevant assets as this could impact the income streams of many Cash Generating Units.

Following an impairment review 25 units (2015: 12 units) were considered to be impaired, with a carrying value before recognition of the impairment loss of £1,888,000 (2015 £394,000).

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12. FIXED ASSETS INVESTMENTS2016 2015£'000 £'000

Loans to related undertakings

At 1 April 40,900 32,100

Additions in year 122,250 91,750

Disposals in year (155,950) (82,950)

At 31 March 7,200 40,900

Grace Gillett restricted reserve - investment portfolio 171 184

Equity Loan 169 166

At 31 March 7,540 41,250

2016 2015Loans to related undertakings £'000 £'000

Places for People Homes Limited - 33,300

Castle Rock Edinvar Housing Association 7,200 7,600

7,200 40,900

13. OTHER FIXED ASSETS

Freehold offices

Long leasehold offices

Fixtures and Fittings Total

£'000 £'000 £'000 £'000CostAt 1 April 2015 450 138 245 833Change of tenure (450) - - (450)At 31 March 2016 - 138 245 383

Depreciation and impairmentAt 1 April 2015 - (138) (225) (363)Charge for year - - (6) (6)At 31 March 2016 - (138) (231) (369)

Net book value at 31 March 2016 - - 14 14

Net book value at 1 April 2015 450 - 20 470

14. STOCK2016 2015£'000 £'000

Housing properties for sale Buildings - Completed 741 264Buildings - In progress 2,058 39

2,799 303

Capitalised interest charged to stock during the year is £16,000

The Grace Gillett reserve resulted from a legacy left to the residents of River Street. These funds are invested with Barclays Wealth and are managed by Places for People Living+ Limited.

The loans are repayable to Places for People Living+ Limited within a maximum of five years and are secured by a floating charge on the assets of the company.

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15. DEBTORS 2016 2015£'000 £'000

Rental debtors 959 611

Less: Provision for bad and doubtful debts (509) (361)

450 250

Other trade debtors 927 235

Other taxes 21 9

Capital development debtor 10 10

Amounts owed from related undertakings 1,204 64

Sundry debtors, prepayments and accrued income 125 680

Loans to employees 12 15

2,749 1,263

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR2016 2015£'000 £'000

Housing and bank loans - principal payable within one year 1,257 1,181Deferred government grant 2,433 1,862Interest on housing loans 251 262Trade creditors 915 270Other creditors and accruals 3,940 2,771Prepaid rent 445 361

9,241 6,707

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR2016 2015

Debt £'000 £'000

Housing and bank loans 13,552 14,729Recycled Capital Grant Fund (note 18) 925 1,187

14,477 15,916

Less : Payable within one year (note 16) (1,257) (1,181)13,220 14,735

Deferred government grant 154,277 126,831Amounts owed to related undertakings 15,579 - Creditors falling due after more than one year 169,856 126,831

Total creditors falling due after more than one year 183,076 141,566

Analysis of debt and other financial liabilities

These are repayable as follows: 2016 2015£'000 £'000

In one year or less 1,257 1,181In one year or more but less than two years 1,792 1,408In two years or more but less than five years 5,155 5,405In five years or more By instalments 2,273 3,922 Not by instalments 4,000 4,000

14,477 15,916

All loans are secured by specific charges on the Association's housing properties and are repayable at varying rates of interest, from 1.2153% - 10.23% in instalments.

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18. RECYCLED CAPITAL GRANT FUND AND DISPOSAL PROCEEDS FUND

2016 2015 2016 2015 2016 2015£'000 £'000 £'000 £'000 £'000 £'000

At 1 April 2015 1,079 740 108 - 1,187 740Inputs to RCGF: Grant recycled 118 335 - 108 118 444

Interest Accrued 6 4 - - 6 4Transfers from other group members 1,261 - - - 1,261 -

Recycling of grant: New Build (1,625) - - - (1,625) - Transfers to other group members (22) - - - (22) -

At 31 March 2016 817 1,079 108 108 925 1,188

39 278 - - 39 278

19. NON-EQUITY SHARE CAPITAL2016 2015

£ £Shares of £1 each Authorised, Issued, Allotted and Fully PaidAt 1 April and 31 March 808 808

20. PENSION OBLIGATIONS

21. CAPITAL COMMITMENTS

In one year or lessBetween two and five years

192645

Additional Capital expenditure that has been authorised by the Board of directors

Capital expenditure that has been authorised and contracted for but has not been provided for in the financial statements

17,520

2016£'000

1,110

The total cost charged to the income and expenditure account of £543,000 (2015: £549,000) represents contributions payable to these schemes by the Association at rates specified in the rules of the plan. As at 31 March 2016, there were £46,000 of contributions due to be paid over in respect of the current reporting period (2015: £44,000) .

The commitments under non-cancellable operating leases for the following year, analysed according to the period in which each lease expires, are set out below.

Motor vehicles2015£'000

Motor vehicles2016£'000

22830

-

-

2015£'000

Total

Amounts 3 years old or older where repayment may be required

The Association's shares are not transferable or redeemable. Payment of dividends or other benefits to shareholders is forbidden by the Association's Rules.

The pension costs for Places for People Living+ Limited relate to two schemes of which employees are members; the Social Housing Pension Scheme and a Stakeholder scheme.

Employees joining the Group from 1 September 2004 have the option of joining a defined contribution retirement benefit scheme, the Places for People Stakeholder Pension Plan and Group Life Assurance Scheme.

HCA GLA

The Places for People Group Stakeholder Scheme

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22. CONTINGENT LIABILITIES

23. RELATED PARTY TRANSACTIONS

24. STOCK OF HOUSING

The Assocation owns or manages 7,266 housing properties, a breakdown of these housing properties is shown below:

2016 2015No. No.

Social Housing managed - Supported Housing 1,103 2,900 - Housing for Older people 2,877 1,204

Total Social housing managed 3,980 4,104

- Staff 38 57

Total housing managed 4,018 4,161

Toal housing owned but managed by another body 3,248 3,343

Total housing owned or managed 7,266 7,504

As disclosed in the table above, the Association manages 3,980 social housing units. The number of social housing units owned by the Association are:

Social housing - General Needs Housing 2,630 2,538 - Affordable Housing 79 38 - Supported Housing 1,590 1,256 - Housing for Older people 822 545 - Low cost home ownership accomodation 93 51

Social housing stock owned 5,214 4,428

The Group manages 3,088 units which are owned by other Registered Providers.

Places for People Living+ Limited is a subsidiary of Places for People Group Limited, 80 Cheapside, London, EC2V 6EE. Sincethe parent company publishes consolidated Group accounts, the Association has taken advantage of the exemption not toreport transactions with other Group members as permitted in FRS8.

The Association is party to certain legal actions arising in the ordinary course of business. While the outcome of these casesis uncertain, the directors believe, on the basis of advice received, that no material loss to the Association will occur (2015:Nil).

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25. TRANSITION TO FRS 102

Explanation of transition to FRS 102 from previous UK GAAP

Changes for FRS 102 and SORP 2014

a) Housing properties and government grants

Summary of changes on adopting FRS 102

Restated consolidated statement of financial position

2015 2014£'000 £'000132,035 124,505

5,611 5,287

137,646 129,792

7,514

340

7,854

Housing properties and accruals method for grant accounting

Restated comprehensive income for the year

The accounting policies set out in note 1 have been applied in preparing the financial statement for the year ended 31 March2016.

An explanation of how the transition for previous UK GAAP and SORP 2010 to FRS 102 and SORP 2014 has affected theGroup’s financial position and performance is set out below

These are the Association’s first financial statements prepared in accordance with FRS 102 and the SORP 2014.

In preparing the FRS 102 and SORP 2014 financial statements, the Association has adjusted amounts previously reported inaccordance with previous UK GAAP and SORP 2010.

Social housing grant can no longer be offset against housing properties within fixed assets under section 24 of FRS 102.Instead, as housing properties are now held at depreciated cost, the grant is measured under the accrual method andamortised over the life of the component assets and is held within creditors.

The effect on the Statement of Financial Position at 1 April 2014 (the date of transition) is an increase in revenue reserves of£23,742,000 relating to grant treatment. Revenue reserves are reduced by £18,455,000 in respect of increased depreciationrelating to the higher asset carrying value resulting from grant values no longer being netted off.

In the year to 31 March 2015, grant amortisation income of £1,861,000 has been recognised in the income and expenditureaccount, alongside £1,521,000 extra depreciation.

Original reserves

Housing properties and accruals method for grant accounting

Restated reserves

Restated total comprehensive income for the year ended 31 March 15

Total recognised surplus and deficits per UK GAAP

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