Financial Strength

Our financial strategy is strongly focused on business sustainability: keeping our costs under control and managing cash flow. The management and use of cash is a fiscal priority and our business operations continue to be cash generating. The long term financial outlook for the business is excellent. But we will only reap the rewards if we maintain the high standards of financial management and control which we pride ourselves in. The challenge is to balance our competing priorities of providing excellent service delivery and growth with financial stability.

We have achieved a healthy increase in income and our surplus for the financial year ended 31 March 2008 was £558k which is less than last year’s surplus of £850k. This is because we spent £508k -105% more on major repairs as per our asset management’s 30year planned repairs programme with 2007/ 08 being one of the two peak expenditure years. A net surplus of £124k has been added to our General Reserve, creating a new balance of £5,547k at the year-end. These reserves put Soho HA in a healthy financial position, helping to protect us against external risk and ensuring our continued financial viability. The interest cover ratio is a very comfortable 212% well above the target minimum of 110% proving there is financial capacity. Our regulator, the Housing Corporation has given us a low risk rating in their annual financial health assessment.

Total social housing rental income from our homes totalled £3,471k for the year, an increase of 5% over the previous year. This increase is due to the rent rises allowed under the Housing Corporation’s rent restructuring rules.

Our twenty eight commercial properties provided a rental income of £0.95m in the year to 31 March 2008, a significant contribution of nearly 20% to our total revenue. This commercial business stream consistently contributes about 40% to the overall business surplus strengthening our capacity to develop and manage new homes.