BIH Housing Association - Annual Report and Accounts 2006/2007

This year our Housing assets (based on Historic Cost) grew from £233 million to £250 million. This was funded through Housing Association Grant and external borrowings.

Turnover and Operating costs reduced this year as a result of reduced activity within BH Property a group subsidiary company.

The Operating Surplus increased to £3.4million (2006: £3.2 million). Transfers to the Designated Reserves and Disposal Proceeds Fund increased to leave a net surplus of just under £1 million.

The key reporting requirement within the statutory Accounts this year was the identification of the underlying assets and liabilities of the Association’s retirement pension scheme as reported by Financial Reporting Standard 17. This adoption required a change in accounting policy and as a result the comparative figures were restated.

A review of the Financial Ratios showed the gearing ratio at 14% (2006 17%) and interest cover at 6.67 times (2005 6.56 times).

Our exposure to financial risk is constantly being reviewed. We have revised the treasury management policy and a new risk management strategy in place to specifically provide assurance on high and frequent risk areas within the group.

This was a transitional year for BIH in its consolidation of its IT Infrastructure. A 3-year strategy is in place to exploit our investments in technology and to enhance productivity. We moved to a faster internal gigabit network and extended into a purpose built computer room during the recent renovations of the Russell Court offices. The telephone system was replaced to embrace more modern technologies and to position ourselves more favourably with VOIP technologies. And we have extended the internal IT team to 3 to ensure we are providing the necessary service and support to meet the growing aims of the business.

I would like to take this opportunity to thank the dedication and support of all the Finance team that enabled another successful year for the Association.