In financial terms it has been another successful year for the Association. Although there has been less growth in the house building programme than last year the Association continues to show a healthy financial outcome.

The Association completed only 5 dwellings during the financial year. When this is put in context with the ongoing development programme at the year end it is, however, clear that modest growth will continue in the forthcoming year in line with the Association's targets.

During the financial year the Association's balance sheet has again strengthened, showing an increase of 22% growth in its net assets. While its fixed assets, comprised mainly of its housing property net of Housing Association Grant, increased by 17%, it was accompanied by a modest £177,000 increase in the Association's net current liabilities. Most of this is attributable to the payment of Housing Association Grant paid by our Sponsors, the Department of Social Development, in advance of the relevant capital work being completed. While this advance was technically repayable to the DSD at 31 March, should no further site work be completed beyond the Balance Sheet date, the risk of such was negligible: the related work has now been largely completed at mid June and the Grant credited to the Housing Property account. The advance payment of HAG was estimated at £469,666 at the Balance Sheet date.

Consistent with previous years the Association, while financing its capital development programme from, mixed funding, sources, both public and private, has sought to defer its private sector borrowing as late as possible, in order to minimize loan interest charges. Related development has been financed internally in the short term, from working capital sources. At the Balance Sheet date, over £600,000 private borrowing was still to be drawn down in respect of capital works already completed. Had these been drawn down both working capital cash and long-term liabilities would have been increased by the same amount, thus reducing the net current liability position. The Association's solvency continues not to be a matter of concern.

As regards income and expenditure, it is pleasing to report a surplus of £147,489, which represents a small decrease on last years surplus, but increases the Association's revenue reserves to £620,564.

The turnover of the Association, mainly generated through rental income from tenants, increased by 10% on the previous year, as a result in the increase in completed lettable properties available and rental increases in April 2003. Meanwhile loan interest charges were managed to a 5% increase on the previous year, showing how the Association not only benefited from the modest interest rates but also from the deferral of borrowing on its capital development expenditure until the latest possible time. The Association will continue in its focus on this type of treasury management to ensure sound financial outturns.

Our Board of Management continues with its commitment to the highest standards in relation to the fundamental principles of integrity, trust, fairness, and openness. The Association holds regular Board meetings during the year in which they continue to review procedures and policies in line with key management and strategic objectives.

The Board has now been augmented by the formation of its Audit Sub Committee and an audit programme has been drawn up for 2004/2005. This Committee will be able to concentrate entirely on all financial aspects of the Association, and will report back to the Main Board of Management, giving an even higher level of Corporate Governance within the Association.


As in other years it is essential in this report not to overlook the human resources and how peoples, efforts have been applied to bring added value to the Association. We employ and contract with a wide network of Contractors, Professionals, financial and legal advisers, and funding providers, both public and private, who have contributed greatly in their specialist roles to the success of our Association during the financial year. To them and to all our in house staff we are greatly appreciative.


This value is shown too in this years tenants survey whereby 93% of tenants stated they were satisfied with their accommodation. It is important not to let the many £ signs and accounts hide the service we provide and it is always good to know that our tenants perceive we are doing that well. In order to strengthen this service even further the Association was in the process of recruiting a new member of staff for the Housing Management department at the year end.

To conclude, the Association remains in a financially sound position to sustain and build upon its rural achievements to date.


Sean Gallagher
Honorary Treasurer


:: Financial Performance 2005/2006
:: Financial Performance 2004/2005
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