REPORT AND FINANCIAL STATEMENTS YEAR …...Ann Rivera - Director of People & Performance (resigned...

REPORT AND FINANCIAL STATEMENTSYEAR ENDED 31 MARCH 2019REGISTERED NUMBER: IP17133R

Trident Housing Association Limited and its subsidiaries

Report and financial statements for the year ended 31 March 2019

Association Information

Co-operative and

Community

Benefit Society number:

IP 17133R

Regulator of

Social Housing

number:

L0979

Registered Office: 12 Fairlie House, Trident Close, Erdington, Birmingham, B23 5TB

Directors and Board of

Management:

The directors of the company who served during the year ended 31 March

2019 are listed as follows:

Board of Management Andrew Ballard - Group Chair

Rob Turton (resigned September 2018)

Katie Kershaw

Colin Small

Nathan Talbott

Rosemarie Anderson (resigned May 2019)

John Morris

Yvonne Leishman

Brian Carr

Simon Hatchman (appointed August 2018)

Andrew Cooke (appointed November 2018)

Directors John Morris - Group Chief Executive

Andrew Cooke - Group Finance Director

David Jones - Director of Housing & Social Care (resigned November 2018

Ann Rivera - Director of People & Performance (resigned September 2018)

Company Secretary Andrew Cooke

Auditors BDO LLP, Two Snowhill, Birmingham, B4 6GA

Bankers National Westminster Bank Plc, 1 St Philips Place, Birmingham, B3 3PP


Page | 1 Report and financial statements for the year ended 31 March 2019

Index to the Financial Statements

Chair's statement

2

Strategic Report and Operating and Financial Review

Principal Activities, Governance and Legal Structure

Business and Financial Review

Objectives and Strategy

Achievements

Value for Money

Risk Management

Capital Structure and Treasury Policy

Future Developments

Statement of Compliance

4

Code of Governance and Financial Viability Standard

Report of the Board

34

Independent Auditor's Report to the Members of Trident Housing Association and its subsidiaries

41

Consolidated Statement of Comprehensive Income

44

Association Statement of Comprehensive Income

45

Consolidated Statement of Financial Position

46

Association Statement of Financial Position

Consolidated Statement of Changes in Reserves

Association Statement of Changes in Reserves

47

48

49

Consolidated Statement of Cash Flows

50

Notes to the Financial Statements

51



Chair's statement

It has been another successful year for the Trident Group. During the year the Group has responded well in

achieving the three priorities set out within its five year Strategic Plan; People, Growth & Sustainability and

Service Delivery.

The Group aims to be “an employer of choice”, understanding its customers better in order to provide

targeted services, committed to delivering an effective service which represents best value and aspires to

create steady, sustainable growth both in terms of property numbers and contract income.

The wider sector within which we operate still presents significant challenges which the organisation has

responded to well. Particular risks have been identified, controlled and mitigated through the Risk

Management Framework, which is firmly embedded into the culture of the organisation. Stress testing has

formed a significant component part of the Risk Management Framework, risks such as Brexit uncertainty,

finance, safety, asset compliance and data management have been continually tested throughout the year.

The Group Board has full ownership of the Strategic Risk Register which is reviewed and agreed at both

Group Board level and is reviewed in detail at each Audit & Assurance committee meeting. All raw risks

and residual risks are scored in line with the Group Board risk appetite and ranked in descending order.

Monitoring of risks are through linked key performance indicators presenting direction of travel against

predetermined targets.

In so far as finances are concerned, there has also been a particular focus during the period on void

management, income management and reliance on agency staff within the care and support arm of the

Group. These areas firmly sit within the monitoring regime of the Group Board and our Executive colleagues

have responded well to the stretched targets that were set within the Business Plan finances.

Value for money has also been a key focus of the Group Board, ensuring the organisation remains efficient

and delivers the priorities set out within the Strategic Plan. Key metrics are in place that benchmark the

organisation‟s performance against its peers and the broader sector. A cost improvement programme

remains in place to respond to the downward pressure on housing associations in particular the 1% cut in

rental income and a reduction in the availability of funds for work with Local Authority partners. The Group

has successfully achieved its cost improvement target during the period through retendering its insurances,

restructuring its back office support functions and is in the process of retendering grounds maintenance and

planned maintenance services which will have a direct benefit to our residents.

We continue to be supported by Savills in respect to our Treasury Management. The Group Board have

taken assurance through its Treasury Policy and monitoring regime that it remains compliant with lender

covenants and has significant headroom to further enhance its risk management controls and mitigations.

The Group Board have also discussed as part of a refreshed risk appetite the level of liquidity it maintains at

any one time at the same time the weighting of fixed and variable debt which the organisation holds. During

the period the Group Board approved the fixing of £20,000k of variable based loans in order to maintain its

Treasury Policy and mitigate uncertainty in interest rates that may fluctuate as a result of Brexit.

Governance remains a key priority for the Group Board and Executives. We continue to work with The

Governance Forum (TGF) on the implementation of both a Succession Strategy and a Governance Action

Plan in order to retain the highest grading with TGF the Group also continues to expand the use of the

governance IT portal - CG First.

Trident Group remains compliant with the Regulator of Social Housing (RSH), having had its grading

reconfirmed at G1/V1, The Group also maintains across all of its care homes a “good” standard with the

Care Quality Commissioner.

The Group has also demonstrated that it has a strong financial profile, built on robust and prudent

assumptions, good headroom within financial covenants and appropriate levels of liquidity.

The level of financial risk being taken on by the Group is also not considered to be unreasonable and the

RSH has assurance that the crystallisation of identified risks can be mitigated successfully in most

circumstances.



Chair's statement (Continued)

As part of ongoing Group Board succession, during the financial year Group Board members completed

their service and following a successful recruitment and skills assessment campaign further members were

appointed; all being appointed by competition and by way of a skills and competencies basis.

Trident Group maintains the National Housing Federation Code of Governance having adopted this code in

March 2016 which replaced the previous code adopted by the Group, the Public Sector Code and the Group

Board has confirmed full compliance with the code.

Throughout the year Trident Group continued to work closely with its Local Authority partners, successfully

delivering on a wide range of support contracts across East and West Midlands culminating with a 100%

achievement in the payment by outcomes target. The Group also successfully managed its care portfolio,

achieving good results with its lead regulators. During the period, the Group was successful in being

awarded the PURE contract with Birmingham City Council; a contract that embeds the placing of vulnerable

urban residents into employment and training.

In addition to the support contracts Trident Group successfully completed on time and within budget its

development at Wrockwardine Wood; a development of 61 units in Telford.

In summary, 2018/19 has been a successful and challenging year, one which the Group has demonstrated

its viability through risk control and mitigation, achieving its income, expenditure and liquidity targets set out

within the business plan finances and meeting the priorities set within the Strategic Plan.

Andrew Ballard

Chair of Trident Group

Date



Strategic Report And Operating and Financial Review

Principal Activities, Governance and Legal Structure

The legal parent of the Group is Trident Housing Association Limited through which all statutory powers of

the Group are vested and all the accounts of the Group are consolidated. The controlling powers of the

Group are exercised by the Group Board and the individual functions of Trident Housing Association are

divested to the Group Board. The Group operates as a Social Investment Group which incorporates all the

group services of housing, maintenance, support, social enterprise and charitable activities. These functions

are discharged by the legal subsidiaries and the Trident Group Board. Trident Group (“The Group”) comprises: Trident Housing Association Limited A Co-operative and Community Benefit Society, an exempt charity and registered provider with Homes England. Trident Housing Association provides landlord services for the Group in respect of housing management and maintenance. Trident Housing Association is also the parent company of the Group and provides central services to Group members. Trident Reach The People Charity A registered charity. Trident Reach the People Charity provide Care and Support services to residents over a number of geographical areas in the Midlands from Trident Housing Association properties and those of other registered providers. Trident Star Limited Trident Star, a company limited by shares, is the Group's commercial arm and currently manages one social enterprise for the Group and the residents shop situated in Trident House. Partnerships The Group continues to engage in a wide range of partnership working including participation in the Matrix partnership of housing associations which seeks to pool resources for joint procurement and housing development. The Group is engaged in a social enterprise partnership with Jericho Landscape, a community controlled business that delivers grounds maintenance, property development and refurbishment to Trident Group schemes. Finally, the Group also has a partnership with Shahjalal, a Bangladeshi co-operative based in Aston, Birmingham. Trident Group provides maintenance and housing services to Shahjalal.




Principal Activities, Governance and Legal Structure (continued)

Governance

There has continued to be a collective and collaborative approach to effective governance across the Group

Board and the Executive at Trident which is helping to ensure the Association not only complies with its

adopted codes of governance and conduct but also with international best practice. The Group Board and

Executive Team communicate regularly ensuring there is a clear flow of information which helps to inform

robust decision-making in the boardroom.

The Association are constantly assessing their governance activity against a best practice framework which

identifies compliance and performance drivers of an effective governance model. Work to implement the

compliance drivers which are Resources, Competency and Execution, helps to monitor compliance with the

adopted code of governance, examines the competency of the Group Board in relation to the skills,

experience, contribution, balance, diversity, probity, training and evaluation mechanisms that are in place.

The execution element addresses how well the Group Board make decisions, assesses the internal and

financial controls, their engagement with the vision and also with all stakeholders.

In relation to these Compliance Drivers, there is clear evidence that the main requirements for

demonstrating effectiveness in these areas are routine aspects of the governance work undertaken at

Trident Group. Examples of this are outlined below:

Resources

Terms of reference for Group Board and Committees reviewed;

NHF Code of Governance Compliance Checklist completed;

RSH Standards Compliance Checklist completed;

Plans in place to produce an integrated annual report;

Strategic Plan reviewed by the Executive including externally facilitated sessions;

Full calendar of meetings produced and issued to all Board Members;

Strategic policies and review schedule in place with delegated authorities for reviews of policies

outlined;

On-going completion of actions from the Board approved Governance Action Plan;

Active risk register which is reviewed by the Audit and Assurance Committee at each meeting;

Role descriptions for Board in place;

Schedule of matters reserved for the Board reviewed and in place;

Skills report updated to reflect current Board membership;

Profiles of all Board Members with photographs are on website;

Statutory compliance checklist is now in place and is discussed at SMT level; and

Developing a Governance Framework Handbook which houses all of the key governance

documentation.

Competency

Board has good range of skills as outlined in the skills report with strengths (4 or more individuals

with high or very high skills) in 20 out of 27 listed skills;

Recognition of need to improve some aspects of diversity included in skills and succession reports;

Proportion of executives and non-executives is in line with the rules and NHF Code;

Declaration of interests forms completed by Board Members and register signed off at Audit

Committee;

Use of induction checklist and induction pack and timetable of activities for newly appointed Board

Members;

Board Members are regularly sent details of and attend training that helps them to further develop

their competency in relation to their role on the Board;

Recruitment campaigns informed by skill gaps and succession planning;

Succession plan in place; and

Appraisals and mid-term reviews take place annually and every six months respectively.





Execution

Decisions are recorded in meeting minutes with a full, monitored, RAG rated action tracker in place;

The risk register is discussed at each Audit and Assurance Committee as well as at Board meeting;

The Group have an internal auditor who reports directly to the Audit and Assurance Committee;

The People and Performance Committee oversee remuneration and a full, external review of Board

Member Pay has been scheduled for the next financial year in line with provision D10 of the NHF

Code. Employee pay is appropriately scrutinised and benchmarked at this Committee;

An external Board observation concluded that: “…members contributed, challenged and scrutinised

appropriately.”

The Association makes information available to its various stakeholder groups through the website,

newsletters and by engaging in partnership work (such as Matrix);

There is a Strategic Plan in place which embodies the vision and objectives of the Association;

Board Members are ambassadorial and attend events and training; and

Stakeholder engagement takes place through resident groups and other activity. More targeted

stakeholder feedback and research is scheduled for the next financial year, including but not limited

to staff and customer surveys.

Aspects of the work across these areas has formed part of the on-going Board effectiveness review

processes for which there is a 3 year plan in place.

With compliance aspects satisfied, the Board have also examined aspects of their performance, for example

a board observation was undertaken in March 2019. Looking forward, the Performance Drivers – Behaviour,

impact and transparency will be further explored in the next financial year when Trident Group pursue a

kitemark in governance via The Governance Framework – a process that is accredited by ICSA: The

Governance Institute. This is an in depth and robust process that allows organisations to assess their

governance practices against internal best practice alongside the requirements of practice within their own

sector.

The continued commitment to good governance at Trident Group is evidenced by the retention of its G1 and

V1 grading from the Regulator of Social Housing last assessed via a stability check in November 2018. Ever

striving to operate in a manner that reflects all facets of its work, the Group also reflect the practices of the

principles of the Charity Governance Code and the Good Governance Standard for Public Services in what

they do.

Board Activity

The key activities of the Board during the last financial year have included but are not limited to:

Risk appetite;

Risk management framework;

Development;

Treasury strategy;

Care and support;

Customer demographics;

Stock condition;

Regulating the Standards;

Compliance;

Business plan assumptions;

Executive remuneration;

Right to Buy;

Homes England Grant agreement;

Resident and Customer Voice; and

Opportunities from the Commonwealth Games coming to the region.





Main requirement B of the NHF Code states that the Board has: “The duty to be effective in the strategic

leadership and control of the organisation and act wholly in its best interest.” The activity the Group Board

has undertaken during the last 12 months has sought solely to be in the best interests of all areas of the

business as has been evident in the deliberation of a number of topics.

Board Members continue to have collective oversight and ownership of the risk management framework and

the internal control and assurance framework. The work of the Board provides clear oversight for the

monitoring of the work of the Executive and there remains a good but challenging relationship between the

Board and the Executive with the Executive being held to account.

Audit and Assurance Committee

The key activities of the Audit and Assurance Committee during the last financial year have included but are

not limited to:

Statutory accounts;

KPI‟s;

Budget;

Regulatory returns;

Business plan;

Stress testing against the business plan;

Compliance check list;

Treasury policy;

Asset and liability;

Risk management framework (including risk register); and

Internal controls assurance.

People and Performance Committee

The key activities of the People and Performance Committee during the last financial year have included but

are not limited to:

Appraisals – including mid-term Reviews;

Recruitment;

Executive remuneration;

Board skills;

Succession planning;

Shareholding;

Terms of reference;

Gender Pay Gap;

Equality and Diversity profile and pay analysis; and

Pay policy.

Safeguarding Committee

The key activities of the Safeguarding Committee during the last financial year have included but are not

limited to:

Policies;

Statutory returns;

Safeguarding internal audit;

Terms of reference;

Analysis of trends; and

Annual Child Protection, Safeguarding Children and Families Report.





Risk and Control

The Group Board continues to have overall oversight of risk which has been a key part of the agenda for

both of the strategic away days held by the Board. Risk is a standing agenda item for all meetings and is

included on the report cover sheet that precedes each report. Aspects of risk covered in these discussions

have included: Brexit, GDPR, safeguarding, KPIs, risk appetite, strategic risk register and stress testing.

Discussions around risk have continued to take into account the changing nature of the sector and the role

of Associations in protecting their residents alongside the future political and economic impact of a post-

Brexit economy and how to navigate this. In addition to this, the Group Board have also discussed fire

safety, rent inflation, succession, supplier concentration, interest rates, new requirements from the regulator

– including the new VFM Standard issued by the Regulator of Social Housing and the gender pay gap.

The Audit and Assurance Committee continue to undertake significant scrutiny of risk and control matters

who then, in line with the agreed reporting structure, report their work to the Group Board who have ultimate

responsibility for risk.

Training, Succession and Induction

The work conducted on succession and skills has helped to inform recruitment campaigns to address gaps

in membership and also to ensure the right skills are represented on the Group Board, also taking into

account the future needs of the Association. Board Members are encouraged to attend training with a

number of them having attended the NHF Members Conference as well other training. There has been an

in-house training programme which has seen the Board receive training on finance, health and safety and

GDPR which are all matters that are linked to risks outlined on the risk register. CPD is encouraged for all

staff. Members of the SMT have completed the accredited Effective Board Member Programme which has

helped to build the contingent of senior staff who have developed their knowledge, understanding and skills

in applying effective governance.

The latest Succession Report was completed in August 2018 and indicated that there is one Board Member

who is due to retire in 2020, with two further Members due to retire in 2021, one of whom is the SID. As

such, in the next financial year the Board will be focusing on creating a future skills matrix and ensuring

recruitment is undertaken in line with these needs and the strategic objectives for the Association moving

forward. The Group Board will also continue to consider its commitment to boardroom diversity across the

recruitment processes and in line with its pledge to the Diversity in the Boardroom Campaign.

All newly appointed Board Members are subject to a structured and robust induction programme which

includes site visits and presentations from the Executive and Senior Leadership Teams and includes a

governance refresher. Board Members are invited to comment on the structure and appropriateness of the

induction as well as record any comments and training needs.

Oversight and Monitoring

The Board and the Committees have fulfilled their remit in line with their terms of reference. All Committees

report to on their work to the Board in line with the terms of reference.

The Audit and Assurance Committee continue to offer the challenge and scrutiny needed to ensure the risk

management, controls and governance required are in place. Policies have also been presented to the

Committee for approval.

The Group Board

The Group Board consists of ten Members, which includes the Group Chief Executive and Group Finance

Director. There were 7 meetings of the Board held during the last financial year and 2 away days. The

Annual General Meeting (AGM) was held in September 2018.





Committee Membership

Committee Group Board Members

Audit and Assurance Katie Kershaw

Colin Small - Chair

Andy Ballard

Yvonne Leishman

Brian Carr

Simon Hatchman

John Morris

Rob Turton (retired September 2018)

People and Performance Colin Small – Chair

Rosemarie Anderson (resigned May 2019)

Andy Ballard

Brian Carr

John Morris

Safeguarding Andy Ballard – Chair

John Morris

Nathan Talbott

Brian Carr

Diversity

Attendance

Attendance – April 2018 – March 2019

Board – 90%

Audit and Assurance Committee – 91%

People and Performance Committee – 89%

Safeguarding Committee – 86%

Tenure

Tenure

2 Board Members have served for less than one year

2 Board Members have served for between one and two years

6 Board Members have served for between three and six years

Gender

30% of the Board Members are female

70% of the Board Members are male

Age

20% of the Board Members are aged between 26 and 40

80% of the Board Members are aged between 41 and 64

Ethnicity

1 Board Member is from a BAME background

9 Board Members are from White British backgrounds




Principal Activities, Governance and Legal Structure (continued) Skills

Key skills strengths identified in the last skills report include:

Summary of Board Strengths

Asset Management

Customer Services

Equality & Diversity/ Human Rights

Financial Management & Accountancy

Governance & Regulations of Social Housing

Governance & Regulations of Care & Support

Housing Management/ Landlord Services

Human Resources Strategy

Information Management

Information & Communication

Legal - e.g. Company law

New Business/ Entrepreneurial Skills

Operational Management

Partnership working with Statutory Bodies & Local

Authorities

Resident Engagement & Scrutiny

Risk based auditing, risk management & assurance

Social investment and social enterprises

Staff Management and human resources

Staff training and learning

Strategic business planning

Membership

The Group Board Members are:

Andy Ballard (Chair) Andy, a qualified solicitor has over 30 years‟ experience in the housing sector and holds various Non-Executive appointments. Andy‟s main areas of work and expertise are advising on matters of governance and strategy, regulation, mergers and group structures, and restructuring. He has also completed a number of complex and sensitive investigations. In addition, Andy has expertise in mentoring senior colleagues, people matters and is a part-time lecturer at the University of Gloucestershire. Colin Small (SID) A qualified Accountant, Colin worked in the private sector until joining the Severn Trent Water Authority and then the Housing Association sector in 1979. Colin has held a number of senior finance roles in the Housing sector including Finance Director/Company Secretary at Touchstone/Keynote (now Midland Heart) and at Festival Housing Group (now Fortis Living). Since 2008 Colin has provided consultancy services and board member services to a number of Housing providers. His current portfolio includes Senior Independent Director and Chair of Remuneration and Nomination Committee of a Birmingham based Housing Association, Group Board member and Chair of the Group Audit and Assurance Committee of a Kidderminster based Housing Association, and Financial Advisor to two other West Midlands Associations. Colin was previously Chair of the Social Housing Pension Scheme from 2008 to 2018 providing a pension service to over 500 housing employers and managing an investment base in excess of £4bn. He has also previously served as a Board member on three other Housing Associations.




Principal Activities, Governance and Legal Structure (continued) Colin has provided training services to the Housing sector and regularly contributed to housing and pension events and various publications. John Morris (Chief Executive Officer) John is Group Chief Executive of Trident Group, which he joined in January 2004. John is committed to achieving his vision with Trident Group of creating a diverse, modern, social business, based on three pillars of activity – Housing, Care and Support and Social Investment. Katie Kershaw Katie is an urban design and heritage consultant with experience in the Midlands and across the country. She works on behalf of public and private sector clients with a particular focus on housing. Katie is a trustee director of Birmingham Conservation Trust, a member of Birmingham Civic Society‟s planning committee and an associate lecturer on the University of Birmingham‟s planning course, where she delivers lectures on place making. Nathan Talbott Nathan is an associate solicitor, specialising in commercial litigation and was co-opted to the Group Board of Trident in December 2015. He is a member of The Association of Corporate Governance Practitioners and holds a degree in Law. He is an ex professional footballer, and continues to work with the PFA and also has worked with London 2012 Olympic legal panel. Rosemarie Anderson Rosemarie is an experienced housing professional, working at a senior level for over 30 years, including 16 years as Chief Executive of Rockingham Forest Housing. Under Rosemarie‟s leadership Rockingham Forest became one of the top performing associations in England. She is actively involved in the National Housing Federation and Chartered Institute of Housing and has served on the Lord Chancellor‟s Advisory Committee for the appointment of Magistrates, as a Parish Councillor and as a school governor. Brian Carr Brian has been Chief Executive of Birmingham Voluntary Service Council (BVSC) since 2005. He joined the organisation after training as a personnel manager with Marks and Spencer plc, and time spent setting up and leading a Legal Aid service as managing director of a local Citizens Advice Bureau. His current role involves strategically leading BVSC in the full range of its activities, which focus on providing advocacy and development support to charities, community groups, and volunteers, and supporting the public and private sectors to better engage with the local voluntary sector. A past Chair of Healthwatch Birmingham and Birmingham Race Action Partnership, Brian is currently Chair of the Birmingham Changing Futures Together Partnership, a Lottery-funded initiative to create positive systems change in services which support people with multiple complex needs. He is currently a partner governor of Birmingham Community Healthcare NHS Trust and a Non-Executive Director of Birmingham Children‟s Trust. Brian is the author of two books, including the Amazon bestselling career guide, How to Find Your Vital Vocation. Yvonne Leishman Yvonne is an experienced housing professional who has worked for over 30 years at a senior level in local authorities and housing associations in Yorkshire and the West Midlands. She has over her career developed expertise in housing management, the delivery of care and support services, and in the development of new homes. In addition to her Trident role Yvonne is also a board member on a Gloucestershire Housing Association. She was President of the Chartered Institute of Housing, and has served on a number of charitable and professional boards. She was awarded the OBE in 2005 for services to housing.




Principal Activities, Governance and Legal Structure (continued) Andrew Cooke (Group Finance Director) Andrew, Chartered Institute of Management Accountants joined Trident Group in October 2016 and is the Group Finance Director. Andrew has 20 plus years experience in diverse sectors; warehousing & logistics, manufacturing, training and public health. His key focus is assurance, reporting, strategic development and promoting a business‟s partnering relationship with internal and external stakeholders. Andrew serves as a Non-Executive Director for a west-Midlands based housing association. Simon Hatchman Simon has worked in the social housing sector since the mid 1990s. His career has included spells at several large housing associations, and he has also worked as a regulator and lender to the sector. Simon is currently Finance Director at PA Housing based in Leicester. In his spare time Simon acts as a parent governor at a small village primary school, where he chairs the finance committee.

Business and Financial Review The Group Board are pleased to report a surplus from normal operational activities of £2,520k (2018:

£2,589k). The achievement of the year end surplus is as a result of good cost control, delivering on its VFM

target and mitigating risks as part of its risk management framework.

Trident Group has benefited from low interest rates due to the quantum of debt weighted towards variable

based loans. During the year Trident Group fixed £20,000k of LIBOR based loans to mitigate the risk of

increasing interest rates as a consequence of Brexit uncertainty.

The Group‟s liquidity remains strong; this is forecasted to continue within its long term plan. The Group

Board revisited its risk appetite during the period, a key focus being the level of liquidity the organisation

holds, it has been agreed that a minimum level of £6,000k cash is held during the 2019/20 plan enhancing

its risk mitigation factors.

At the point of signing this report the Group has a £20,000k revolving credit facility (RCF) in place, the

amount drawn against this facility is £11,848k with a further £8,152k charged and immediately available.

The Group Board have not planned to utilise this facility during the 2019/20 campaign however wish to

retain it in order to enhance its financial resilience.

Trident Group remains within the Matrix partnership having completed 61 units at Wrockwardine Wood, the

Group is revisiting its Treasury Strategy in order to drive its development going forward.

During the period 2018/19 Trident Group had its grading reconfirmed at V1, a grading that provided the

regulator with sufficient assurance that it had met the viability requirements of the Standard. The Group has

been able to demonstrate that it has a strong financial profile, built on robust and prudent assumptions,

good headroom within the financial covenants and appropriate levels of liquidity. The level of financial risk

being taken on by Trident Group will not be considered to be unreasonable and the regulator has assurance

that the crystallisation of the identified risk can be mitigated successfully in most circumstances.

The Group is financially compliant in respect of funder‟s covenants having significant headroom built within

the Group Board risk appetite early warning indicators. All entities within the Group have strong cash

surpluses compared to their peers and each organisation within the Group can operate independently of

one another.

Effects of material estimates and judgement:-

In preparing these financial statements, the key judgements and estimates have been made in respect of

the following:



Impairment of tangible assets

A key judgement has been made in respect of whether there are indicators of impairment of the Group‟s

tangible assets. Factors taken into consideration in reaching such a decision include the economic viability

and expected future performance of the assets and where it is a component of larger cash generating unit,

the viability and expected future performance of that unit.

The Association obtained a valuation from Nationwide in February 2019 for their charged stock that shows a

EUV (“Existing Use Value”) of £81.9m and an MVT (“Market Value subject To Tenancies”) of £111.3m.

Barclays charged stock was also valued in November 2018 reflecting a EUV of £13.3m and an MVT of

£15.0m. In addition St Teresa‟s Court had been valued in March 2017 at a EUV of £3.1m and an MVT of

£3.3m. As part of the charging exercise with Barclays, Wrockwardine Wood was also valued in February

2019 generating a EUV of £5.2m and an MVT of £6.2m.

We have considered the following impairment indicators and concluded that no impairment is required:-

Long term voids – there are 21 (10 in 2017/18) long term voids, which represent an insignificant

proportion of the total stock.

Obsolescence – there has been no unexpected decline in asset values.

There has been no major contamination.

There are no changes in Government policy that we consider would lead to impairment.

Trident Group is fully compliant with fire safety and none of its properties have issues in respect to

cladding.




Business and Financial Review (continued)

2019 2018 2017 2016 2015 Consolidated Statement of Comprehensive Income (£000) Income

- Housing - Care and support - Other activities

Total Income

17,594 13,397 2,272

33,263

17,133 13,455 2,080

32,668

17,119 13,268 2,243

32,530

17,692 13,539 1,900

33,131

17.543 13,352 2,217

33,112

Operating Surplus 5,223 5,300 5,285 4,908 3,852 Surplus for the year transferred to reserves before pension scheme closure costs 2,520 2,589 2,267 1,448 1,216 Pension scheme closure costs - - - (69) (660) ________ ________ ________ ________ ________ Net surplus / (deficit) 2,520 2,589 2,267 1,379 556 ________ ________ ________ ________ ________

Statement of Financial Position (£000)

Housing Properties, net of depreciation 154,223 153,105 149,250 151,441 151,415 ________ ________ ________ ________ ________ 154,223 153,105 149,250 151,441 151,415 Other fixed assets Investment properties

3,324 1,380

3,236 1,330

3,383 1,320

3,645 1,230

4,128 1,230

________ ________ ________ ________ ________ 158,927 157,671 153,953 156,316 156,773 Net current assets 870 1,672 2,171 1,178 702 ________ ________ ________ ________ ________

Total assets less current liabilities 159,797 159,343 156,124 157,494 157,475 Creditors:amounts falling due after more than one year Provision for liabilities and charges

(135,962)

- ________

(138,007)

(21) ________

(137,398)

- ________

(141,035)

-

________

(142,395)

- _______

23,835

________

21,315

________

18,726 ________

16,459 ________

15,080 ________

Revaluation Reserve 1,114 1,114 1,114 1,114 1,114 Revenue Reserves 22,721 20,201 17,612 15,345 13,966 ________ ________ ________ ________ ________

23,835 21,315 18,726 16,459 15,080 ________ ________ ________ ________ ________

Housing properties at year end: In management 3,386 3,347 3,349 3,354 3,355 In development 0 48 63 4 22 Total 3,386 3,395 3,412 3,358 3,377

Statistics Operating surplus as % of turnover 15.7% 16.2% 16.2% 14.8% 11.6% Surplus transferred to reserves as % turnover (pre exceptional item) 7.6% 7.9% 6.9% 4.4% 3.7% Gearing (Debt per unit) Nationwide Barclays

£25,917 £26,294

£26,412 £26,916

£26,469 £27,017

£28,248 £28,629

£31,446 £29,247




Objectives and Strategy

The Group‟s overriding strategy is set out in the Strategic Plan published in 2017 entitled “A Beacon of Hope

in an Age of Austerity” and takes the Group through to 2022. This ambitious plan provides details of how we

plan to develop our service offer through our ambition to be one of the country‟s major social business

groups. The plan, built on the achievements of the last five years, takes the Group forward in a step change,

year-on-year, combining social purpose and business considerations. The corporate ambitions can be

summarised as follows. To be:

acknowledged as an outstanding Social Business Group with an associated high profile and

reputation;

recognised as an excellent service provider that places involvement of people, communities and

stakeholders at the core of its approach; and

acknowledged as a successful, sustainable and environmentally friendly social group.

Within that plan, the core strengths of the Group “the three pillars” are delivered through a focus on:

People: Offering high quality services to all our residents, putting our customer first and ensuring that staff are

motivated and given continued support through effective learning and development opportunities and

career development.

Property: Investing in our properties and the environment to ensure that homes are well maintained, safe and

secure and that the surrounding environment is a good place to live.

Finance: Ensuring that the Group makes best use of its resources for residents and that a solid financial platform

is in place for future investment in homes for growth and development of services.




Achievements During 2018/19 Trident Group has performed well against its Strategic Plan, exceeding the net surplus

targets, ensuring cash is ahead of plan and performing; with considerable headroom in comparison to

lender covenants, at the same time fulfilling its commitment to providing value for money, affordable homes

and development of new housing units. Additional successes are continued within this report.

Registered Care -

Trident Reach manages 12 Registered Care homes (10 in Birmingham and 2 in Shropshire), offering 24

hour residential care and supports to adults with learning disabilities and associated needs. The services

are regulated by the Care Quality Commission (CQC) and with Trident Reach operating robust internal audit

and quality assurance processes. In the last twelve months there have been nine inspections across Trident

Reach‟s registered care services, all homes currently have an overall rating of „Good‟ in their CQC

inspection reports. The utilisation levels have improved in 2018/19 with vacancies being filled in a timely

manner and with higher level care packages. One care home has secured Continuing Healthcare funding to

better meet a customer‟s increased care requirements. This is also in line with objectives in the

department‟s Strategic Plan to diversify income streams.

In April 2018 Trident Reach‟s Birmingham Registered Care Services were successfully awarded new

contracts to be providers on the new Care Framework for the city. Many of the care homes have received

and completed the new Provider Quality Assurance Statement (PQAS) which is an annual self-assessment

tool cross referenced with the new Care Service Standards. As part of the framework care homes will

receive at least one quality monitoring visit a year from Birmingham City Council or CQC. Currently five care

homes have received their quality monitoring visit from their Commissioning Officer and all five have been

awarded a Silver rating.

Shropshire Services -

All services across the region have maintained a high level of service delivery.

Since successfully being selected as the new provider for Elms House, an NHS service, on 28 February

2017 the service has continued to achieve the required outcomes and has received a second contract

extension. A new Registered Manager has been recruited and continues to develop this mental health

rehabilitation and recovery service.

The Sustain consortium in which Trident Reach provide support for adults with Autism, Asperger‟s, and

Learning Disabilities has previously been funded through Supporting People (SP). As of 1 April 2019 SP

funding for community based services ended. This has not resulted in any loss of revenue. Individuals have

all been reassessed by social services and in some cases their funding and support package have

increased. A new contract agreement for Support and Care in the Community with Shropshire Council has

been received.

The Specialist Mental Health Supported Housing and Crisis house continue to run at full capacity with

waiting lists.

Community Services Department -

Our Coventry service continues to deliver community based preventative support for people with learning disabilities and through this we enjoy a strengthened position in the market as the sole provider of learning disability housing related support in Coventry. We actively participate in quarterly contract review meetings with commissioners and the tools and processes we have introduced to capture outcomes and Key Performance Indicators have been well received and cited by commissioners as good practice to other health and social care providers. In 2019 Birmingham Domiciliary Care services were awarded a three year Home Support contract and placed on the Local Authority‟s provider framework. The new contract has resulted in an increase in the hourly rate for home care provision which will reflect positively on service budgets. The service has maintained an overall rating of „good‟ following its last CQC inspection.




Achievements (continued) Murray Grey Mews continues to provide intensive support to all individuals and Trident Housing provides the Housing Management of two purpose built shared house facilities. The Payment By Outcome model has been reviewed and a number of discretionary payments were received in line with progression associated with mental health recovery as captured in support plan and risk assessment documentation. There is a focus on nominations, referrals and move on as the service enters the second year in operation.

The Birmingham Supporting People Service contracts for both the Learning Disability and Mental Health

have achieved their required targets in terms of utilisation and outcomes in line with contract requirements.

The key performance indicators place these contracts in a favourable position with commissioners with clear

and demonstrable outcomes every quarter.

We continue to increase referrals into the Dudley and Wolverhampton Domiciliary Care both through

referrals from the Local Authorities and also from securing private packages of care and support. The

services have undergone rigorous Local Authority audits throughout 2018 and has met all identified actions

and has also received a CQC inspections and received the overall rating of „good‟.

The contract for the Sandwell Short Breaks service ceased in 2018, the contract for the Wolverhampton

Short Breaks service has seen a gradual increase in hours over the period and there are opportunities to

further increase in line with recruitment outcomes. We are in communication with commissioners about

additional business opportunities for this service.

Sandwell Services –

In 2018, the Sandwell Vulnerable Housing Person Services Supporting People Contracts went out for tender

and we were successful in retaining existing services at an increased contract value. The new Sandwell

MBC contracts were issued in November 2018 (the Meeting House, Wednesbury and Brasshouse Lane,

Smethwick), providing 36 units of accommodation and support to vulnerable single adults faced with

homelessness and associated needs that may include alcohol and substance misuse, mental health,

offending and complex and chaotic behaviour. We are working positively with the staff team,

commissioners, providers and stakeholders to embed the requirements of the new contract.

Birmingham Support Services –

We deliver a total of 14 Supporting People contracts across the city, commissioned by Birmingham City

Council (BCC), supporting some of the most vulnerable citizens through a range of services. Our

Homeless Support Services, both accommodation and floating support, continue to be committed to

tackling homelessness and reducing rough sleeping. We work with BCC and contributed to their

Homelessness Strategy, attending the strategy launch and continue to be involved in the Homelessness

Pathway Board.

We have responded flexibly to re-model parts of our homeless accommodation services in line with BCC‟s

Rough Sleeper Initiative funding and opened our Cold Weather Provision earlier with the addition of staffing

to support and encourage engagement into mainstream services. During the six months the Cold Weather

Provision was in operation over 1500 rough sleepers were provided with emergency accommodation.

Subsequently the submission for a summer night shelter has been accepted and a mobilisation plan is in

development. We now offer 7 units of “light-touch” support accommodation within our hostel again to

support with the transition from rough sleeping on the streets to accessing support and accommodation. The

addition of accommodation offered to homeless individuals with pets or who are couples has also meant we

have supported more people off the street into accommodation and addressed some of the barriers

previously preventing access.

Our Hospital Patient Pathway and Skills Hub continue to be delivered and enables us to better support

individuals threatened with or actually homeless secure accommodation and skills to bring stability for their

long term future. We liaise with key partners to ensure that this service is timely and responsive and

accessible to those in need.




Achievements (continued)

Our Youth Promise Plus service that provided innovative support to vulnerable and disadvantaged young

people to access to education, training and employment opportunities came to an end in Summer 2018.

However we were successful in winning a similar contract from March 2019 called PURE (Putting Urban

Residents into Education/Employment) it is aimed at customers aged 29+ across the most deprived parts of

central Birmingham and we have won the homeless element of the project to bring customers out of

homelessness and into education and work.

Domestic Abuse Support Services provide refuge accommodation and floating support to women and

children and work towards raising awareness of Domestic Abuse. Our specialist Male Floating Support

Service is the only one commissioned by the City and has continued to see referrals into the service giving

specialist support to men who are victims of Domestic Abuse. We have forged positive working relationships

with the local police, specialist Family Law organisations and training providers which has added value to

the service provision across all contracts.

Derbyshire Support Services -

Our Extra-Care service at Oakland Village is a recognised and established provider of accommodation and

support to older people within South Derbyshire. We have worked effectively this year to develop two

separate entities being support and commercial within the service. The support element raises funds from

commissioned funding whilst the commercial element brings in funds/profits from the activities of the

service. This models infused the staff team and they have come up with some good profitable ventures.

This also means the menu of activities for people living at Oakland Village and also in the community has

grown significantly.

Young People Leaving Care services in Derbyshire came to an end in Summer 2018 and we exited the

contract with Derbyshire County Council.

Derbyshire Domestic Abuse Services (DA). The service has embedded a number of specialist funded

posts which include art therapist, specialist mental health worker, and Violence Against Women and Girls

worker. The contract has been extended for an additional year, to allow the local authority to develop new

initiatives in DA services. We continue to be the consortium lead for the provision of DA services across the

county and are a recognised service within the area. Our refuge and dispersed accommodation as well as

our floating support services are in high demand and have held waiting lists for the whole of the former year.

Housing Services

The housing service reorganised in 2017/18 and we continue to deliver the service through the Locality

Officer model. The creation of a new Executive Lead who oversees both Care and Support (Reach) and

Housing has meant that relationships between the teams has improved and there is a shared understanding

and commitment to developing and maintaining the services that we provide to tenants.

Locality Working

The change from specialist teams to a generic team of 10 Locality Officers has enabled officers to get closer

to their tenants and concentrate on building relationships with them. The focus of locality working is to build

sustainable tenancies and of the 660 new lets during the financial year, only 11 tenants ended their

tenancies. We carried out 638 Health and Wellbeing Checks. This is a new initiative for Trident and many

tenants have not had a visit from an officer for some time, apart from a gas service or a repairs visit. The

wellbeing checks are providing support for tenants as well as giving us the opportunity to check on the

property condition, identify any breaches of tenancy and so on. Following the visit, where required referrals

are made to debt advice services and employment agencies, safeguarding concerns are reported and

support has been put in place from Reach services, such as domestic abuse and domiciliary care. We

continue to work successfully with West Midlands Fire Service who work with us in carrying out safety and

wellbeing visits, taking a joint approach to tackling hoarding, overcrowding and mental health issues.





We currently work with 14 Local Authorities and have been engaging with them on their work with the

Homeless Reduction Act which places a duty on LAs to prevent homelessness.

Arrears Management

This continues to be a challenge for the team. Universal Credit and the administration of Housing Benefit

has caused arrears to escalate in some cases. The Group appointed an officer to work specifically in giving

support to residents on Universal Credit. This specialist role has helped with increasing knowledge for staff

and liaising with Locality Officers to ensure the proactive management of those tenants who are in receipt of

the benefit. The relocation of the Finance Department‟s Revenue Recognition team who provide

administrative support has helped both teams to better understand their roles. The team also work closely

with the Legal team who manage the process when court action is required. There has been extensive

training on the CRM system which provides the tools to manage the arrears process and there has been

work on ensuring that the performance reports are fit for purpose and allow for effective monitoring and

targeting of the team. The Locality Officers continue to give focus on arrears management improvement and

support to residents and the Intensive Housing Management Officers replicate this and are responsible for

the arrears performance on supported schemes.

Community Safety

The Community Safety Team has faced its own challenges and has engaged in some effective partnership

working with the police, social services and other agencies to address some of the wider issues that affect

our residents and the neighbourhoods where they live. We have tackled rough sleepers on Central Site by

making referrals to Washington Court or to other homeless organisations such as SIFA or Streetlink. Our

officers work innovatively and tirelessly to help and support those residents who are left behind through ever

decreasing specialist support from statutory and voluntary agencies, particularly in the area of mental

health. We have signed up to the “Make a Stand” pledge, an initiative developed by the Chartered Institute

of Housing in partnership with Women‟s Aid and The Domestic Abuse Housing Alliance. The aim is for

housing organisations to commit to support people experiencing domestic abuse.

Allocations

We have made considerable improvements to our void performance over the year due to the hard work of

staff and ensuring that everyone has an awareness of the importance of minimising the time that properties

are kept empty. We have worked with local authorities to ensure that the nominations processes are

correctly adhered to. We have ensured that opportunities for mutual exchanges are maximised by promoting

the Homeswapper site to tenants and providing support where necessary. We had 10 successful exchanges

in the financial year which is above average for an organisation of our size. As part of our commitment to

sustaining tenancies, we are engaging with initiatives that work with applicants to help them to be tenant

ready. We are working in partnership with Crisis and running workshops in Trident House on Understanding

Tenancies; Managing your Money and Tenant Responsibilities.

We have successfully let all the 61 properties in Wrockwardine Wood in Telford with no void loss and as a

result of a successful relationship with Telford and Wrekin Council have been invited to participate in their

Housing Partnerships meetings which aims to reduce homelessness in the borough and collectively manage

the issue of housing supply.

Intensive Housing Management

With the reduction in Supporting People funding, we have appointed Intensive Housing Management

Officers who work in our supported schemes. Their focus is on voids and arrears and ensures that we have

a co-ordinated approach between those recovering arrears and those supporting tenants. We have further

developed this model this year to ensure some of our most vulnerable customers continue to get a level of

service from the organisation. Our specialist women‟s refuge for Muslim women lost funding in summer

2018 but we have managed to keep the service running using the Intensive Housing Management Model

and by bringing in support from our Domestic Abuse floating support services in Birmingham.





Resident Engagement

The Housing Green Paper has provided us with opportunities to refocus our resident engagement approach

and we are working with the National Housing Federation on its Together with Tenants programme. We will

commit to the Charter which is being developed but will also articulate our own Offer to Tenants. We

continue to engage positively with residents on a scheme-based level and carry out estate walkabouts,

organise Skip Days and facilitate Breakfast Clubs at Trident House and are extending this to other areas,

such as Burberry Court in Tipton. Our Resident and Customer Engagement Strategy will enable us to frame

our Offer to Tenants under the headings of Governance, Involvement and Communication.

People and Resources

The People and Resources function is central to the Group‟s infrastructure that supports the day-to-day

delivery of services to our clients.

Equality, Diversity and Inclusion

Having been recognised for our commitment to Equality, Diversity and Inclusion (EDI) in the National Centre

Diversity‟s Top 100 Index 2019 (number 67) as a Top 100 company to work for, for four consecutive years –

the Group continues to review its approach to EDI to demonstrate its commitment to EDI.

In recognition of this commitment, the Group is a „Disability Confident Committed Employer‟ for a second

year (up to March 2020) since signing up to the Disability Confident Scheme, which replaced the

Department of Works and Pension (DWP), Two Ticks accreditation. Being Disability Confident is a unique

opportunity for the Group to demonstrate its approach to recruitment and retention of disabled people and

those with health conditions, making the most of the talents that these people can bring to the workplace.

Human Resources

The organisation continues to be accredited as an Investors in People (IIP) organisation at the Standard

award level, having continued to demonstrate the requirements of the IIP framework. The Group‟s

achievement of the Standard award once again reflects the commitment and acknowledges the effort of

everyone that works for the Group.

The IIP state themselves that the Standard award is a very challenging one for organisations to meet, and

we have consistently met the Standard award for two consecutive years. The HR team continues to work

with staff, volunteers and apprentices across the organisation to provide dedicated and responsive support

for the development of skills and knowledge to continue to contribute effectively to the Group‟s strategic

vision and direction.

Learning and Development

In line with the Group‟s strategic vision and direction, the Group continues to deliver mandatory and

developmental training to employees and managers. Management training on HR topics has been rolled out

in 2018, and will continue throughout 2019 and 2020. The purpose is to equip managers across the Group,

with the necessary skills, knowledge and confidence to manage day-to-day employee relations within their

teams.

The Group also continues to utilise the technology available, by increasing the e-learning training courses

on offer.

Gender Pay Reporting

The Group completed its second review of the Gender Pay Gap Reporting as required by law. The report

which provided a snapshot of participating organisations as of 5 April 2018, showed that the Group‟s figure

of 15.2% was below the Office of National Statistics figure of 17.9%.





The Group is committed to reducing the pay gap and will continually review pay and pay arrangements in

line with business transformation, market rates, sector benchmarking and legislative changes.

ICT The past year has seen ICT concentrate on Cyber Security to be compliant with GDPR. This has involved

upgrading to the latest network infrastructure hardware, and engaging a new network security provider to

monitor and enforce resilience. As part of this project, the Group also tested our network security utilising a

third party tasked with penetrating our network and identifying any areas of concern, which were then

addressed. A regular offsite backup of our data was also commissioned.

ICT has also obtained the government backed, industry supported, Cyber Security Essentials Certification -

a pre-requisite to conducting business with government organisations.

Aiding the Group‟s approach to digitalisation, ICT also during the period moved the Group‟s subsidiary,

Trident Reach, to the latest Virtual Desktop Infrastructure to bring them in line with Trident Housing

Association, and to transfer all local data for storage within the Group‟s datacentre. Also as part of ICT‟s

remit to „champion Digital Inclusion for the excluded‟, 14 Reach sites had Wi-Fi installed and tablets

provided, to enable residents to engage with the wider world.

ICT also commissioned a Stock Conditioning Module to be created to house all of the data collected during

the Stock Conditioning programme by the Group‟s Technical Service‟s team.




Value for Money (VFM)

Overview

Value for Money is integral to Trident Group‟s (Group) strategic approach; this is both explicit in our stated

objectives and also implicit in the targets that drive improvement in the efficiency and effectiveness of our

services.

The Group operates under the mantra „Every Pound Counts‟. Many of our residents and customers have

complex needs and vulnerabilities, meaning that due to the additional investment this requires in services

we are unlikely to be the cheapest when compared with our peers. We therefore aim to derive the most

value out of every pound spent, balancing costs against the diverse requirements of our customer-base,

whilst still aiming for at least sector median in terms of cost-performance.

The Group‟s aim is to be “an employer of choice”, achieving this by; understanding its customers better in

order to provide targeted services, committed to delivering an effective service which represents best value

and aspires to create steady, sustainable growth both in terms of property numbers and contract income.

The strategic aims and objectives, as well as the key performance indicators (KPIs) and business finances

that drive and support attainment of them, are reconfirmed within the Group‟s Strategic Plan.

The Strategic Plan covers a five year period starting in 2017/18 with a Business Plan refreshed annually,

and although our aims and objectives remain consistent through this period our activities and targets are

fully reviewed and revised annually to ensure we are driving performance improvement at the right pace.

Governance: How We Manage and Monitor VFM

Our strategic objectives are set and agreed by the Group Board, as are the Group‟s performance targets.

The targets are reviewed and revised annually, based on analysis of the organisation‟s performance, as well

as comparison with peers. We continually benchmark against other organisations with similar objectives.

All strategic objectives are monitored through a set of linked KPIs reported to Senior Management Team on

a monthly basis and to the Group Board on a quarterly basis. In addition to this the management accounts,

supported by a clear finance report analysing the accounts, are reported on the same frequency analysing

any variance from agreed cost-improvement targets.

As part of the budgetary approval process with the Group Board, cost improvement targets are discussed,

agreed and then transacted within the budget statements, a cost improvement log is then created which can

be monitored throughout the period through the management accounts and key performance indicators, a

set of indicators that is also linked to the Strategic Risk Register.

As part of the organisations stride to VFM we continually review our supply base, retendering through a

competitive process to ensure the costs of services that are being delivered to the Group are minimised

whilst maintaining the quality to our stakeholders. The Group undertakes a review of its suppliers through its

internal controls assurance, ensuring that all suppliers are engaged in line with the Standing Financial

Instructions Policy; a policy which is approved by the Group Board.

The Group has recently had approval for a dedicated Procurement role to sit firmly within its Senior

Management Team structure, this post will further enhance the savings and through a targeted approach to

achieve our VFM targets.

The information and evidence that is present within the Group allows us to assess how we are achieving

VFM against the three aspects of economy, efficiency and effectiveness; definitions aligned to those used

by the Regulator of Social Housing within its Value For Money Code of Practice publication.




Value for Money (VFM) (continued)

Governance: Who Is Responsible for VFM

VFM is a key driver within the organisation with dedicated accountability and responsibility, all staff have a

responsibility to utilise the asset base to its optimal efficiency, the following tables demonstrates the level of

functionality in achieving the VFM plan:

VFM owners

Function Action

Group Board Overall responsibility for achieving VFM

Audit & Assurance Committee To challenge VFM assumptions

Chief Executive and Group Finance Director

Champion VFM within Senior Management Team

Senior Management Team Operational responsibility for delivery of VFM

Group Performance Business Partner To support staff with new VFM initiatives

All staff Ongoing drive to VFM

All staff / Board members Review performance against VFM targets

Our VFM Performance in 2018/19 As stated the Group monitors performance through Key Performance Indicators, with targets set to achieve

or exceed sector median performance where possible; a number of these KPIs relate directly to VFM and

are set out below.

In addition to monitoring KPIs the Group participates in wider sector benchmarking through Housemark,

undertaking an annual appraisal of costs and performance, the benchmarking is compared to the Group‟s

peers and the sector.

The seven metrics in the tables are those which are examined by the Regulator of Social Housing as part of

its approach to regulation of VFM. In addition other operational metrics are reviewed by the Senior

Management Team and Group Board.

Value for Money Performance Metrics

Group Performance

No. VFM Performance Metrics 2018/19

performance 2017/18

performance 2019/20 Plan

1 Reinvestment 2.60% 3.67% 0.69%

2a New Supply Delivered (social housing) 1.63% 0.45% 0.00%

2b New Supply Delivered (non-social housing) 0.00% 0.00% 0.00%

3 Gearing 47.61% 40.61% 38.11%

4 Interest Cover - EBITDA (MRI) 205.07% 240.30% 208.31%

5 Headline Social Housing Cost £4,890 £4,630 £4,558

6a Operating Margin (social housing) 25.96% 25.25% 29.40%

6b Operating Margin (overall) 15.70% 16.22% 18.65%

7 Return on Capital Employed (ROCE) 3.44% 3.41% 3.91%





Housing Association only 2018 benchmark (Housemark)

No. VFM Performance

Metrics 2018/19

performance 2017/18

performance Sector Upper

quartile Sector median

Sector lower quartile

1 Reinvestment 2.60% 3.67% 8.43% 6.08% 3.71%

2a New Supply Delivered (social

housing) 1.63% 0.45% 2.34% 1.10% 0.35%

3 Gearing 48.61% 40.94% 28.78% 39.40% 50.55%

4 Interest Cover - EBITDA (MRI)

196.75% 222.24% 280.67% 203.50% 156.93%

5 Headline Social Housing Cost

£4,700 £4,530 £2,983 £3,311 £4,083

6a Operating margin (social housing)

26.53% 26.20% 34.00% 28.40% 21.95%

6b Operating margin (overall)

26.67% 26.55% 34.00% 28.40% 21.95%

7 Return on Capital Employed (ROCE)

3.38% 3.19% 5.16% 4.00% 2.97%

Housing Association only 2018 benchmark (Housemark)

No. VFM Performance

Metrics 2018/19

performance 2017/18

performance Peer* Group

Upper quartile Peer* Group

median Peer* Group

lower quartile

1 Reinvestment 2.60% 3.67% 9.00% 7.02% 4.11%

2a New Supply Delivered (social

housing) 1.63% 0.45% 2.54% 1.24% 0.89%

3 Gearing 48.61% 40.94% 32.15% 42.53% 56.34%

4 Interest Cover - EBITDA (MRI)

196.75% 222.24% 256.10% 211.20% 189.12%

5 Headline Social Housing Cost

£4,700 £4,530 £2,944 £3,387 £3,674

6a Operating margin (social housing)

26.53% 26.20% 32.57% 25.60% 21.87%

6b Operating margin (overall)

26.67% 26.55% 32.57% 25.60% 21.87%

7 Return on capital employed (ROCE)

3.38% 3.19% 5.43% 3.95% 3.37%

Costs Per Unit

Social housing CPU (£k)

Management CPU (£k)

Service charge CPU

(£k)

Maintenance CPU (£k)

Major repairs

CPU (£k)

Other social housing

costs CPU (£k)

Trident Group

2019/20 Plan 4.56 0.68 1.31 1.11 0.46 0.99

2018/19 4.89 0.73 1.41 1.16 0.53 1.06

2017/18 4.63 0.76 1.39 1.02 0.34 1.13

2016/17 4.71 0.75 1.38 1.02 0.45 1.10

Sector

Sector Upper Quartile

2.98 0.82 0.19 0.78 0.53 0.07

Sector Median 3.31 1.01 0.33 0.92 0.73 0.19

Sector Lower Quartile

4.08 1.23 0.55 1.12 0.98 0.43





Social housing CPU (£k)

Management CPU (£k)

Service charge CPU

(£k)

Maintenance CPU (£k)

Major repairs

CPU (£k)

Other social housing

costs CPU (£k)

Trident Group

2019/20 Plan 4.56 0.68 1.31 1.11 0.46 0.99

2018/19 4.89 0.73 1.41 1.16 0.53 1.06

2017/18 4.63 0.76 1.39 1.02 0.34 1.13

2016/17 4.71 0.75 1.38 1.02 0.45 1.10

Peer Group

Peer* Upper Quartile

2.94 0.83 0.20 0.78 0.53 0.07

Peer* Median 3.39 0.94 0.26 0.86 0.71 0.01

Peer* Lower Quartile

3.67 1.20 0.57 1.15 0.84 0.81

*Peer group consists of 23 organisations ranging from 2,000 to 6,200 unit numbers

It is important to note the differences in key areas, for example operating margin (metric 6b), that are

accountable to our Group‟s commitment to providing care and support services integrated with our housing

services. Care and support contracts, primarily funded by Local Authorities, have significantly lower

operating margins and this affects our Group Performance. When viewed at Housing Association level

(metrics 6a and 6b) the Association performs close to sector median and above our peers‟ median.

These additional costs, attributable to the nature of our organisation, are evident in the Cost Per Unit (metric

5) regression. The Group carries a significantly higher than average level of cost within our service charges,

and our other social housing cost. The Group employs additional staff specifically for the housing

management of our supported schemes, and this, alongside costs created through flatted accommodation

(door entry systems, lifts, laundry) result in deviation from the sector in terms of cost. It is encouraging to

note that our indirect costs such as management cost per unit has shown a reduction on prior years and is

in the upper quartile compared to the sector and our peers.

Major repairs and maintenance cost per unit have increased in line with the additional investment into

existing stock in respect to fire safety, also as a result of a stock condition survey conducted by Savills

during the period, which brought forward component replacement costs, however over the 30 year business

plan expenditure remains aligned to the original assumptions.

The Group‟s development programme (metric 2a) is a cyclical one; in order to develop sustainably from a

financial and management perspective. The Group does not undertake significant development

programmes each year. During 2018/19 the Group completed its development at Wrockwardine Wood; a

development of 61 units in Telford, which as a percentage of stock owned has shown an increase in new

supply delivered on the prior year.

Other key metrics The Group operates a set of key performance indicators / early warning indicators as described earlier in

this report. Targets are set annually in line with the Group Board approved plan and monitored on a monthly

basis indicating direction of travel in performance. All metrics are RAG rated in line with the approved Group

Board risk appetite and linked back to the risk register.





The Strategic KPI‟s are as follows:

KPI Related Risks

RIDDOR Reportable incidents ● Health & Safety and Asset Compliance

Fire Risk assessments up to date ● Health & Safety and Asset Compliance

% stock Gas safety compliant ● Health & Safety and Asset Compliance

Wellbeing and home safety checks undertaken ● Health & Safety and Asset Compliance

● Asset Management

Current tenant arrears as % of rent charged● Cash

● Poor financial performance

Average re-let days ● Cash


Rent collected as % of revenue due● Cash


Void loss as % revenue due● Cash


Operating Margin● Cash


Agency staff spend● Cash


New business income● Cash


EBITDA MRI● Cash


Internal VFM reduction target● Cash


Data Protection Breaches ● Information technology and data management

ICO reportable ● Information technology and data management

Debt serviceability● Refinancing & Access to available funds


Net debt per unit● Refinancing & Access to available funds

● Cash

Drawn loan balance● Refinancing & Access to available funds

●Brexit

Fixed debt % ● Refinancing & Access to available funds

Variable debt % ● Refinancing & Access to available funds

Cash at bank ● Refinancing & Access to available funds

Inflation rate ● BREXIT

Interest rate (LIBOR) ● BREXIT

% Of staff EU27 Nationals● BREXIT

● Staff and Board Member retention

Securitisation (Headroom) (£) ● BREXIT

Net debt per unit (Headroom) (£) ● BREXIT

Stock condition surveys undertaken● Asset Management

● Health & Safety and asset compliance

Average Performance on PBOs (SP Contracts)● Poor financial performance

● Cash

% of C&S contracts meeting contract utilisation● Poor financial performance

● Cash

Workforce stability factor ● Staff and Board Member retention

Staff turnover ● Staff and Board Member retention

% Contract to be reviewed within 6 months (Care & Support) ● Supported services and Accommodation

Number of units developed (Affordable rent) ● Development (No market sales)

Number of units developed

(Market rent)● Development (No market sales)





Benchmarking activities In addition to the sector and peer benchmarking work highlighted earlier in this report, the Group is a

member of the Matrix Partnership, a partnership that not only supports members in housing development

but also provides through regular meetings at Chief Executive and Group Finance Director level the sharing

of best practice. The aims of each Finance Director meeting are as follows to:

bring like minded senior people together across the sector;

share strategic and relevant operational performance information; in particular key metrics;

share best practice and consistency in reporting;

provide learning and access to experts within the sector;

deliver and exceed regulatory requirements; and

enhancing benchmarking and challenging one another‟s performance information.

The Finance Directors share this additional knowledge and benchmarking with their Group Board and

Senior Management Teams to put key variances into context.

Other VFM highlights During the year the Group has achieved its VFM savings target which was transacted within the 2018/19

budget as cash backed savings. A number of examples are below:

The retendering of the Group Insurance policy whilst increasing the liabilities cover, generating a

saving on a full year basis of £250k.

Reconfiguration of the Executive Management Team and the establishment of an Executive Lead

structure, generating savings of £140k.

Negotiation of software, hardware and telecommunication systems, generating a saving of £59k.

The full year effect of rental income from the completion of our development at Wrockwardine

Wood; Telford.

Maximisation of payment by outcome (PBO) and contract utilisation within the Birmingham City

Support Contracts.

Maintaining “Good” standard with the Care Quality Commission protecting future income.

Securing the PURE contract with Birmingham City Council; a contract that embeds the placing of

vulnerable urban residents into employment and training at a net margin in excess of the Golden

Rule.

The fixing of £20,000k of LIBOR based loans protecting against interest rate fluctuations and

avoiding cost increases.

Future VFM savings and initiatives

Retendering of grounds maintenance and planned maintenance services.

Reduction of re-let days improving rental income.

Dedicated focus on Universal Credits and the avoidance of increasing arrears.

Further budgeted investment in operational digitalisation; in particular within our homelessness

provision.

Recruitment of a dedicated Procurement role to review all suppliers.

The embedding of the Group Performance Business Partner in reviewing operational procedures

and policies in order to drive out inefficiencies.

Consolidation and reconfiguration of office accommodation.

A review of staff terms and conditions to ensure they are aligned to the employment market. Centralisation of agency approval plus the establishment of a staff bank.




Risk Management Management of Risk remains a key priority for Trident reflecting the ongoing change in both our external and internal operating environments. Trident has a clear strategic approach to risk, including both programmed and reactive reviews, and this is documented in the Trident Risk Strategy. Risk is understood at all levels of the organisation, but is led by a very risk-aware Board. Over the reporting period Trident has reviewed its approach to Risk management. This includes the following:-

Reassessing the organisation‟s risk appetite at the Group Board Away Day November 2018.

Revising our Risk Management recording and monitoring practices, including a review of our Risk

registers taking into account three lines of assurance / defence.

Reviewing the relationship between strategic and operational risks in our Group.

The development of a clear framework for risk-based decision-making in the context of a group

structure.

We have continued to support our approach to risk management with a robust programme of stress testing. A complete stress testing exercise is formally programmed in a minimum of three times a year, firstly as part of the budget setting process, secondly as part of the Strategic Plan review, and thirdly, later in the year as part of the financial reforecasting, but is adjusted and re-run responsively to internal and external changes, both for current and perceived future events. Trident carefully examines its approach to both strategic and operational Risk in the short, medium and longer term, and our approach to risk review and management will continue to evolve to meet the needs of a changing environment. Trident‟s Strategic Risk Register is a living document, reviewed and updated on a monthly basis by the Senior Management Team and by the Group Board at least quarterly as a standing agenda item at each Group Board meeting; all identified risks are mapped to corresponding Key Performance Indicators giving both management and Board early indicators if risk and performance tolerances may be breached. The table on the following page summarises the principal risks identified and monitored on the Strategic Risk Register at the year end in descending order by residual risk.




Strategic Risk Register

Sector Risk Profile 2018

& Risk Area

Risk Description Current considerations Controls and Assurance Current Mitigations 1st Line of Assurance 2nd

Line of Assurance 3rd Line of Assurance

Health & Safety – R.1

Health & Safety + Asset

Compaliance

Health & safety failures put at risk our

customers, service users, staff and the

general public. They could lead to regulatory

intervention and downgrading, prosecution,

loss of finance and damage to Trident and

wider sector.

- Grenfell Tower Fire

- Fitness for Habitation Act

- Hackitt report

- Annual Health & Safety Review.

- Regular Board reporting on Fire Programme

- Asset Management Strategy

KPIs:

- Fire Risk Assessments

- Gas Compliance

- Stock condition surveys complete

Enhanced Programmed Fire Risk

Assessment and action plan for

remedial work

- Internal KPI‟s

- Qualified Staff

- Risk appetite

- Policies & Procedures

- Risk monitoring

- Risk register

- Compliance & Board Training

- Resident engagement

- Internal audit program

- Board monitoring

- Board Training

- Co-regulation

- External Inspection

- Quality checks

- Stock condition survey

Data & Safety Monitoring

– R.6 Information

technology and data

management

"Our IT systems and information

management procedures must be sufficiently

robust to support delivery of our business

plan, to withstand any form of cyber attack,

and to ensure all information is managed

securely and in accordance with the new

GDPR requirements.

Any failure can lead to significant financial

losses and damage to reputation.

Data that is stored or reported on must be

entered correctly and reported to all staff

including Board members accurately and on

time"

- GDPR

- Data reporting to regulator

- Internal Audit

- Data Protection Policy

- Board reporting GDPR taskforce

- Budget including ring fenced spending on

GDPR related IT investment.

KPIs: Data breaches

Regulatory returns are uploaded to CGFirst

for members to review. The Group Finance

Director gives a confirmatory statement to

Group Board as part of the compliance

checklist that all returns have been submitted

accurately and on time.

Investment in electronic, auditable,

secure systemes for data retention and

use within THA. Primary customer

database us one which can be tailored

in-house to store relevant data.

Executive, Senior Management and

staff review of regulatory returns prior to

submission.

- Qualified Staff

- Robust systems

- Capital investment

- Internal monitoring

- Policies & Procedures

- Exec & SMT review

- Supplier agreements

- Risk monitoring

- Risk reguester

- Internal data officer

- GDPR checklist

- Group Board visibility

- Internal audit program

- ICO reporting

- External system testing

Reputational Risk – R.8

Staff and Board Member

Retention

Turnover of staff leads to increased costs

through the use of temporary and the

recruitment. Loss of key staff can lead to

issues in information retention, as well as

reputational damage.

New business in Birmingham –

competition for frontline workers

- Investors in People Award

- Stress testing

- Succession strategy for Board and Executive

KPIs:

- Staff turnover

- Workforce stability

- Staff engagement workshops

-Salary benchmarking & reviews

- Extensive staff benefits

- Reduction in use of agency

- Creation of internal bank of cover staff

- Use of IT system so support

information retention

- Succession planning for key roles

- Internal policies & procedures

- Staff communication portal

- Social media monitoring

- Workers council

- Internal staff training

- Investors in people award

- External staff qualification




Strategic Risk Register (continued)


& Risk Area



Operation risk – existing

stock –R.5 Asset

Management

Failure to adequately invest in and manage

out stock and estates leads to deline in stock

condition, property values and failure to meet

compliance standards, as well as inability to

refinance to necessary level. Failure to

understand our assets leads to unexpected

costs incurred. Failure to meet statutory

requirements on condition or compliance

could lead to prosecution and loss of

reputation.

- Fitness for Habitation Act

- Decent Homes

- Carbon Emissions

Consumer Standards:

- Home Stanadards 2015

- Tenancy Standards 2015

- Neighbourhood and community

standard

-Tenant involvement and

Empowerment standard 2017

- Asset management strategy

- Stock coniditons

- Asset and liability register

- Budget

- Business Plan

KPIs:

- RIDDOR reportable incidents

- FRA up at date

- Gas compliance

- Stock condition surveys completed

Asset and liability register kept up to

date, stock condition and asset

appraisal tool used to develop a robust

asset management strategy, suitable

insurance in place to cover unforeseen

investment requirements (i.e fire,

criminal damage, weather damage) and

to cover against losses from public or

employers liability claims.

- Dedictated resources

- Captial investment programme

- Internal KPI monitoring

- Wellbeing surveys

- Compliance checklist

- Savills stock condition survey

- External inspection

Financial & Treasury

Management / Welfare

Reform – R.3 Cash

If we overspend or fail to collect sufficient

income we will be unable to return the surplus

needed to meet our strategic aims, to satisfy

our regulators and could ultimately breach

our banking covenants. If we do not manage

our cash flow appropriately we could breach

payments terms with contractors leading to

reputational as well as financial losses.

- Welfare Reform and enhanced

roll out of Universal Credit

- Business Plan

- Board approved budget

- Finance update report all Board meetings

- Stress testing

- Management accounts

- External Audit

- NROSH quarterly returns

KPIs:

- Rent collected

- Void loss

- agency spend

- Contingency built into budget

- Budgets are prudent; overspend will

breach our internal targets but not

affect our external covenants.

- Monthly covenants

- Monthly KPIs

- Monthly Mgt Account

- Daily cash monitoring

- Qualified staff

- Risk appetite

- Treasury policy

- Risk monitoring

- Risk register

- Audit & Assurance Com.

- Treasury Management

- Compliance checklist

- External audit

- Regulatoy returns

- Lender returns

Cost & Inflation / Income

Collection / Financial &

Treasury Management /

Value for Money –

BREXIT

The ongoing decision to leave the EU, may

be with a deal to trade with other EU member

states or may not, this may have an impact

on interest rates, inflation, access to

development funding, labour market and

increase in bad debts..

- The leave date has now been

set to the 31s October 2019

A combination of stresses; interest rates,

inflationary rises, labour market, reduction in

income, increase in bad debts, increase in

voids derease in property values and access

to component replacement parts will all be

tested within the new financial budget

2019.20. A separate stress testing report

specifically focused on Brexit has been

presented to Group Board.

Our current mitigation is significant

headroom within our EBITDA MRI &

Net Debt per unit covenance. Trident

Group continues to hold sufficicent

cash reserves and has in place by May

2019 all of the RCF with Barclays

charged and available: £8m on top of

£6m cash at bank.

- Stress testing

- Internal KPI Monitoring

- Business planning

- Benchmarking

- Risk monitoring

- Risk register

- Internal audit

- External audit

- QFS section F submission






& Risk Area



Cost & Inflation / Income

collection / Financial &

Treasury Management /

Value for Money – R.4

Poor Financial

Performance

Inabiltiy to meet financial performance targets

set out in the budget, including cost

improvement taregts and agree efficiency

measures leads to financial losses, inability to

deliver services and our business plan.

Failure to meet and demonstrate our

compliance with the VFM Standards leads to

intervention from commissioners, lenders

and/or regulators leading to reputational

damage.

- Welfare Reform and enhanced

roll out of Universal Credit

- Change of political landscape

and change in policy

- Management accounts

- Business and Strategic Plan

- Budget

- Stress Testing

- Regulator V1 G1 grading

- Internal audit

- NROSH quarterly returns

KPIs:

- Average relet days

- Void loss

- Cost reduction achieved

- Operating Margin

- Internal controls and strict budgets

management.

- An achievable VFM cost reduction

plan included in the budget, and fully

stress-tested Regular reiteration of

VFM principles in staff induction and on

going briefings.

- Stress testing

- Business planning assumptions

- Dedicated resource


- Benchmarking

- Risk Monitoring

- Risk register

- Internal audit

- External audit

- QFS section F submission

Financial & Treasury

Management –

Refinancing & Access to

available funds

Our ability to grow and invest in our stock

depends on our ability to secure refinancing.

If we were unable to secure consistently

favoutable terms on our refinancing it would

restrict out ability to meet out strategic

objectives as the increase in financing costs

would reduce our surplus.

If we were unable to secure refinancing in a

timely fashion we would breach our banking

covenants, leading to funder intervention,

financial and reputational losses.

- Brexit uncertainty - Business Plan

- Treasury Strategy

- Stress testing (of increased repayment

costs)

- Regulator V1 Grading

- External Audit

KPIs:

- Gearing

- Operating margin

- Banking covenant compliance

- EBITDA MRI

- Our approach to gearing is prudent,

we have significant reserves with which

to maintain payments if necessary.

- Trident Group also has the ability to

draw £3,600k of additional facilities into

its current account prior to the 29th

March that are charged and

immediately available, with a further

£6,000k in the process of charging.

- Stakeholder management

- Business plan

- Stress tesing

- Standing financial instructions

- Savills Treasury Mgt

- Risk monitoring

- Risk register

- Group Board Approval

- Debt per unit covenant

- Cash management

- Audit & Assurance Com.

- External audit – going concern

- Regulator – period of financing

- Matrix development partnership






& Risk Area



Operation risk –

Devlopement / Market

Sales – Development (No

market sales)

Undertaking new development leads to

increased cost exposure, as well as potential

Regulatory ones.

Developing as part of a consortium presents

risks where there is reliance on partners to

deliver targets and services.

- Commitment to new units

ouside of the original business

plan made.

- Development cash flow

- Business Plan

- Stress tesing

- Return on investment calculation

- Oversight of Matrix Board

- Legal option of Homes England agreement

KPIs:

- Gearing

- Operating margin

- Banking covenant compliance

- Net debt per unit

-EBITDA MRI

Trident group are not proposing to

develop for general sales, all

development will be covered by

stringent contracts referencing stage

payments in line with Clerk of Works

sign off, a further retention is held to

cover off additional works in the event

of needing so.

Counterparty risk is taken into account

when contracting with an external

organisation, best endeavours are

made to review financial robustness of

contractors.

- Stress testing

- Business planning assumptions

- Internal approval sign off

- Group Board Away Days

- Group Board approval

- Business case submissions

- Strategic plan

- Golden rules

- Matrix development partnership

- Quarterly financial submission

- Savills Treasury Support

Supported Housing – R.7

Supported Services &

Accommodation

If Central or Local Governement decisions led

to the withdrawal of funding for support

services and supported housing we would be

unable to achieve our strategic aims.

If funding were removed this would impact on

the wellbeing of our residents and service

users, as well as representing significant

income loss for the organisation. If the loss

was due to perofmrance this wold have a

reputation impact also.

New proposal for Suuported

Housing Funding

- FFR

- Internal audit report

- Stress testing ( of partial and complele

removal of support contracts, as well as

negative impacts of government proposals

RE: supported accommodation)

- Business Plan

- Golden Rules (on new business)

KPIs:

- Care and support contract met

- Care home ratings

Income insurance, prudent reserves

policy which allows quick access and

covers operation for 18+ months,

diversification of contracts and contract

end dates, internal audit and strong

cash handling/anti-fraud processes.


- REACH reserves policy

- Golden rules

- REACH Board reporting

- Contract performance monitoring

- External audit validation

- Commissioner engagement




Capital Structure and Treasury Policy In respect of Treasury arrangements, these are actively managed. The Group does not have any abnormal exposure to price, credit, liquidity and cash flow risks arising from its trading activities. The Group does not enter into any hedging transactions and no trading in financial instruments is undertaken. The loans maturity is as follows: Maturity 2019 2018 £m £m Within one year 3.3 3.2 Between one and two years 3.3 3.3 Between two and five years 21.1 19.8 After five years 52.6 55.7 ________ ________ Total loans (notes 19 and 20) 80.3 82.0 ________ ________ The Group has four principal funders being Nationwide, THFC, Orchardbrook and Barclays.

Trident has put in place an active Interest Management Strategy. This combines current and future hedging

arrangements to provide longer term certainty around interest costs whilst obtaining some financial benefits

from the current low libor rates offered by the financial markets. As a proportion of our loan portfolio at the

date of this report around 57% (2018: 37%) of our loans are at a fixed rate.

The period of financing as at the 31st March 2019 is 48 months, this compares comfortably with the

Regulator of Social Housings expectation of a minimum of 18 months.

Statement of Compliance In preparing the Operating and Financial Review and Board Report, the Board has followed the principles

set out in the Housing SORP 2014 and FRS 102.

Code of Governance and Financial Viability Standard

The Board has adopted the National Housing Federation‟s Code of Governance (2015), and Code of

Conduct (2012). There are no known instances of non-compliance with the NHF Code. On an annual basis,

Trident completes the NHF Checklist which offers the Board Assurance on how the Organisations is

complying with the Code. The Board has formally assessed its compliance against the Code of Governance and confirms that the Organisation is compliant. The Board has assessed compliance with the Governance and Financial Viability Standards and confirms that the Organisation complies.



Report of the Board

The Board of Trident Housing Association Limited and its subsidiaries are pleased to present its report together with the audited financial statements for the year ended 31 March 2019.

Principal Activities, Business Review and Future Developments Details of the Group's principal activities, its performance during the year and factors likely to affect its future development are contained within the Strategic Report and Operating and Financial Review, which precedes this report.

Board Members and Executive Directors The Board members and Executive Team are set out with the Association information.

The Executive Team is the Group Chief Executive, Group Finance Director and the Group‟s Executive

Leads.

They act as executives within the authority as delegated by the Board.

Service Contracts The Group Chief Executive and the Executive Team are employed on the same terms as other staff with a

notice period of six months.

Pensions The Group Chief Executive and Executive Team are ordinary members of staff and the staff defined

contribution scheme and participated in the scheme on the same terms as all other eligible staff.

Other benefits The Group Chief Executive and Executive Team do not receive any other significant benefits.

Employees We recognise that the success of our business depends on the quality of our managers and staff. It is the

policy of the Association that training, career development and promotion opportunities should be available

to all employees.

We are committed to equal opportunities and raising awareness of Equality, Diversity and Inclusion to staff

across the Group.

The Board is aware of its responsibilities on all matters relating to health and safety. The Group has

prepared detailed health and safety policies and procedures and provides training staff training and

education on health and safety matters.

Employment of disabled persons The Association and Group are committed to a policy of recruitment, promotion and retention on the basis of

aptitude and ability without discrimination. The Group is part of the government‟s Disability Confident

Scheme which supports employers to make the most of the talents disabled people can bring to the

organisation.

Management actively encourages applications from disabled people in the employment of disabled people

whenever a suitable vacancy arises and the continued employment and retraining of employees who

become disabled whilst employed by the Group. As a Disability Confident Committed organisation, the

Group is demonstrating its commitment of equal opportunities for disabled people.



Report of the Board

Financial Risk Management Objectives and Policies The Group uses various financial instruments, including loans and cash, and other items such as rental arrears and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Group's operations. The existence of these financial instruments exposes the Group to a number of financial risks. The main risks arising from the Group's financial instruments are considered by the directors to be interest rate risk, liquidity risk and credit risk. The Board review these through the work of the Audit & Assurance Committee and agree policies for managing each of these risks and they are summarised below:

Treasury management Trident Group engages Savills to support with the management of liquidity, interest rate risk and counterparty risk. These activities are governed by a treasury policy and strategy which are reviewed, challenged and approved by the Group Board. The policy is based on industry good practice. The Group adopts a risk-based approach to liquidity and interest rate management, with an objective to mitigate unacceptable risk. Cash reserves are held with approved counterparties in line with the treasury policy. The organisation is funded primarily through bank loans, retained earnings and grant provided by Government Agencies. There is no exposure to derivatives or foreign currency.

Interest rate The Group's exposure to interest fluctuations on its borrowings is extensively stress tested and reviewed by the Group Board on a regular basis. During the period the Group fixed £20,000k of LIBOR based loans on the advice of Savills; our Treasury Partners. The Group Treasury Policy requires up to 80% of drawn debt to be held at fixed rates of interest. As at 31 March 2019, 57% of the Group‟s drawn monies were held on this basis. Liquidity risk The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and investing cash assets safely and profitably. The Group Board approved the 2019/20 budgeted cash flow on 25 March 2019 with minimum levels of cash at bank at any one time of £6,000k in line with the risk appetite refreshed earlier in the year. In addition to cash held on deposit Trident Group operates a revolving credit facility (RCF) with Barclays, at the point of signing this report charged and immediately available facilities were £8,152k, the Group Board do not expect to utilise this facility during 2019/20 further enhancing Trident Groups risk mitigations. Credit risk

The Group‟s principal credit risk relates to tenant arrears and appears as a high risk within the Group

Strategic Risk Register in line with the Sector Risk Profile. Trident Group has reviewed its allocation policy

and strengthened the support to eligible tenants with their application for Housing Benefit and closely

monitors the arrears of self paying tenants. During the year Trident Group employed a dedicated resource to

monitor and manage the transition to Universal Credits.

Going Concern

The Group has set out its short and medium term strategic plan, preparing a budget for 2019/20 that

delivers a net surplus of £2,753k across three entities; Trident Housing Association, Trident Reach and

Trident Star. The budget has been aligned to the strategic plan business finances and cross reference

against the financial forecast return presented to the Regulator of Social Housing (RSH), the plan for

2019/20 has also been aligned to the quarterly financial survey which was signed off by RSH in April 2019.

Each entity operates and is wholly independent from the other. Trident Housing‟s expected 2019/20 outturn

is £2,399k which is an improvement of £224k on the prior year budget, Trident Reach is £263k and Trident



Report of the Board

Going Concern (continued)

Star expects to deliver a net surplus of £91k. In the event of one or more of the entities being removed from

the Group the remaining are able to continue in operation as there is no loan dependencies from the Group.

Trident Group prepares a 30 year business plan which the Group Board approve the first year budget and

the business plan assumptions for the following periods, at the Group Board Away Day on 12 April 2019, the

Group Board challenged the assumptions ensuring these were stretching but achievable, Savills our

Treasury partners have also reviewed the business plan assumptions aligned to the available facilities and

reported to Group Board in their annual Treasury Report providing assurance that the 30 year business plan

provides significant headroom within the established covenants and risk appetite set by the Group Board.

The budget 2019/20 has been prepared in line with the forecast outturn 2018/19. Birmingham City Council

Supported People contracts have been retendered and the budget assumes a continuation of these

contracts, however the Group Board have taken assurance through stress testing and reserves policy that

Trident Reach has the ability to scale down its operations in the event of these contracts not being secured

at the current run rate. A new business target within the Group‟s Care & Support side operation has been

conservatively estimated at £150k with an associated cost base of £135k in line with the Group Board

approved Golden Rules and the full year effect of the PURE contract; a contract with Birmingham City

Council that embeds the placing of vulnerable urban residents into employment and training.

In November 2018 Trident Group had its grading reconfirmed at G1/V1 a grading that provided the regulator

with sufficient assurance that it had met the viability requirements of the standard. The Group has been able

to demonstrate that it has a strong financial profile, built on robust and prudent assumptions, good

headroom within the financial covenants and appropriate levels of liquidity. The level of financial risk being

taken on by Trident Group will not be considered to be unreasonable and the regulator has assurance that

the crystallisation of the identified risk can be mitigated successfully in most circumstances.

The Group as at 1 April 2019 has drawn facilities amounting to £80,291k; (£82,026k at 1st of April 2018) in

addition to which there is a further £8,152k facilities that are available that have not been drawn. The Group

Board are assured that the available facilities are sufficient to cover any risk that may crystallise. The Group

Board have also discussed in line with the extensive stress testing; testing such as Brexit, interest and

inflationary rises and a reduction in property values to name a few the level of liquidity it holds at any one

time, the Group Board have agreed a minimum cash at bank at any one time during the 2019/20 campaign

of £6,000k, the budget for 2019/20 has been prepared in line with this risk appetite.

The Group remains compliant with its lenders preparing a budget that delivers an EBITDA MRI covenant of

208% compared to an internal risk appetite of 159% and a compliant lender requirement of 110%. Net debt

per unit remains comfortably within the £35k ceiling at £25.8k across Barclays and Nationwide respectively.

The Group Board have taken assurance that these covenants and the level of risk appetite provides

significant headroom, EBITDA MRI and net debt per unit head room of £3,254k and £26,823k respectively.

The Group Board also revised their risk appetite during the period increasing the EBITDA MRI appetite from

140% to 159% and the net debt per unit from £32.5k to £30.2k.

On this basis, the Group Board has reasonable expectation that the Group has adequate resources to

continue in operational existence for the foreseeable future, being a period of twelve months after the date

on which the report and financial statements are signed. For this reason, it continues to adopt the going

concern basis in the financial statements.

Internal Controls Assurance The Group Board acknowledges its overall responsibility for establishing and maintaining the whole system

of internal control and for reviewing its effectiveness for the Group as a whole.

The system of internal control is designed to manage, rather than eliminate, the risk of failure to achieve

business objectives, and to provide reasonable, and not absolute, assurance against material misstatement

or loss.



Report of the Board

Internal Controls Assurance (continued)

In meeting its responsibilities, the Group Board has approved an effective framework to identify and manage

the significant risks to the Group‟s operations. This risk-based approach to establishing and maintaining

internal controls is embedded within day-to-day management and governance processes. The approach

includes the regular evaluation of the nature and extent of risks to which the Group is exposed and is

consistent with best practice.

Annual Review of the effectiveness of the System of Internal Control

The Group Board delegates responsibility for the annual review of the effectiveness of the system of internal

control to the Audit & Assurance Committee. The Audit & Assurance Committee take account of any

changes needed to maintain the effectiveness of the management and control process for risk and fraud.

Audit & Assurance Committee met six times during the course of the year. Assurance over the control

environment was obtained from the following main sources:

Risk Management

An effective risk management framework sits at the core of the system of internal control. The Group Board

confirms that the process for identifying, evaluating and managing the significant risks faced by the

organisation is ongoing, the process has been in place throughout the year and up to the date of approval of

the annual report and accounts and is regularly reviewed by the Group Board. The Group Board during the

financial year reset their risk appetite, setting out the Group Board‟s attitude to risk in the achievement of its

objectives.

The Audit & Assurance Committee approves at each meeting the contents and scoring of the risk register

on behalf of the Group Board who maintain direction and oversight as part of good governance. The

Executive and Senior Management Team regularly consider reports on risks and the Group Chief Executive

is responsible for reporting to the Group Board any significant changes affecting key risks.

The risk register is further enhanced by the 3 Lines of Defence:

First Line – Day to Day Management

Second Line – Corporate Oversight

Third Line – Independent Assurance

Internal Audit Service

The prime responsibility of the internal audit service is to provide the Group Board with assurance on the

adequacy and effectiveness of the internal control system, including risk management and governance.

Internal audit also plays a valuable role in helping management to improve systems of internal control and

so to reduce the potential effects of any significant risks faced. Internal Audit is delivered by an internal

auditor with an element of external support. The Internal Auditor has direct access to the Audit & Assurance

Committee including one in-camera meeting without management present.

The Audit & Assurance Committee reviews the findings arising from all Internal Audit Reports and is

provided with progress reports on the implementation of all agreed recommendations for improvement to

the point of conclusion. The Recommendation Tracker records all agreed recommendations which are

followed up by the internal auditor. Progress of the Recommendation Tracker is monitored by the Audit &

Assurance Committee.



Report of the Board


Internal Audit is sufficiently independent of the activities that it audits to enable the internal auditor to

perform in such a way that allows the internal auditor to make impartial and effective professional

judgements and recommendations.

The Internal Auditor provides an annual report and overall assurance opinion on the system of internal

control based on the Internal Audit work performed during the year and management response to that work.

The 2018/19 Internal Auditor Opinion and Annual Report identified no material concerns.

The Internal Audit Charter sets out the nature, role, responsibilities and authority of the Internal Audit

service within the Group – this was updated and approved by Audit & Assurance Committee during 2019.

Fraud Management

There is an established code for Integrity & Bribery and Trident Group operates a zero tolerance approach

to any instances of fraud or corruption. There is a Fraud & Bribery Prevention, Detection and Response

policy, along with a Money Laundering policy and Whistleblowing policy. These policies are reviewed

regularly. A fraud register is maintained by Internal Audit of identified incidents. In addition there is an

electronic hospitality register which is maintained by the Company Secretary; a register that identifies any

gifts that may have been received. There were no material issues identified during the year. The Group

has appropriate insurance cover in place to mitigate the potential financial losses associated with fraud.

Information and Financial Reporting Systems

Financial reporting procedures include a long-term financial plan, detailed annual budgets, detailed treasury

reports, value for money reporting and regular management accounts which are reviewed by the Group

Board.

Any issues raised in the external audit management letter issued at conclusion of the annual audit are dealt

with to the satisfaction of both the external auditors and the Audit & Assurance Committee with

progress tracked to the point of conclusion.

Key performance indicators and business objectives set as part of the performance management

framework are regularly reviewed by the Group Board to assess progress and outcomes against the

Strategic and Business Plan.

Executive Leads and Senior Management Team

The Group‟s Recruitment and Selection policy supports the appointment of experienced and suitably

qualified staff being responsible for important business functions. Annual appraisal procedures have been

established to maintain standards of performance.

Each employee who has financial or devolved budgetary responsibility is provided with a copy of the

Financial Regulations and provided appropriate training. Employees shall be responsible for the

accountability and control of all resources including plant, buildings, materials, cash and stores relating to

their areas of responsibility.

The Audit & Assurance Committee shall be responsible for making recommendations to the Group Board

on new Financial Regulations and amendments to existing ones, as it considers necessary for the

supervision and control of the finances, accounts, income, expenditure and assets of the Group.



Report of the Board


Control Environment and Procedures

Governance arrangements are subject to continuing review and development to ensure they remain fit for

purpose. Board and sub-Committee membership is reviewed annually in line with the membership policy

terms. Compliance with the chosen code of governance and the Regulatory Framework is reviewed

annually.

The Board retains responsibility for a defined range of issues covering strategic, operational, financial, and

compliance matters and new investment projects. The Board disseminates its requirements to employees

through a framework of policies and procedures.

The Board confirms that there is an ongoing process for identifying, evaluating and managing significant

risks faced by the Group and for preventing, detecting, investigating and insuring against fraud. This

process had been in place throughout the year under review, up to the date of the Annual report, and is

regularly reviewed by the Board.

Statement of the responsibilities of the board for the report and financial statements

The Board members are responsible for preparing the report of the Board and the financial statements in

accordance with applicable law and regulations.

Co-operative and Community Benefit Society law and social housing legislation require the Board members

to prepare financial statements for each financial year in accordance with United Kingdom Generally

Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

In preparing these financial statements, the Board members are required to:

select suitable accounting policies and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards and the Statement of Recommended Practice: Accounting by registered social housing providers 2014 have been followed, subject to any material departures 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 group and association will continue in business.

The Board members are responsible for keeping adequate accounting records that are sufficient to show

and explain the Group and Association‟s transactions and disclose with reasonable accuracy at any time the

financial position of the Group and Association and enable them to ensure that the financial statements

comply with the Co-operative and Community Benefit Societies Act 2014, the Co-operative and Community

Benefit Societies (Group Accounts) Regulations 1969, the Housing and Regeneration Act 2008 and the

Accounting Direction for Private Registered Providers of Social Housing 2015. They are also responsible

for safeguarding the assets of the Group and Association and hence for taking reasonable steps for the

prevention and detection of fraud and other irregularities.

The Board is responsible for ensuring that the report of the board is prepared in accordance with the

Statement of Recommended Practice: Accounting by registered social housing providers 2014.



Financial statements are published on the Group and Association‟s website in accordance with legislation in

the United Kingdom governing the preparation and dissemination of financial statements, which may vary

from legislation in other jurisdictions. The maintenance and integrity of the Group and Association‟s website

is the responsibility of the board members. The Board members‟ responsibility also extends to the ongoing

integrity of the financial statements contained therein.

All of the current Board members have taken all of the steps that they ought to have taken to make

themselves aware of any information needed by the Group‟s auditors for the purpose of their audit and to

establish that the auditors are aware of that information. The Board is not aware of any relevant audit

information of which the auditors are unaware.

Annual General Meeting The Annual General Meeting will be 23rd September 2019.

External Auditors A resolution to re-appoint BDO will be proposed at the forthcoming annual general meeting. The report of the Board is to be approved by the Board on 29 July 2019 and signed on its behalf by: Andrew Cooke Company secretary



Independent Auditor's Report to the Members of Trident Housing Association Ltd

Opinion

We have audited the financial statements of Trident Housing Association Limited (“the Association”) and its

subsidiaries (“the Group”) for the year ended 31 March 2019 which comprise the consolidated and

Association statement of comprehensive income, the consolidated and Association statement of financial

position, the consolidated and Association statement of changes in equity, the consolidated cash flow

statement and notes to the financial statements, including a summary of significant accounting policies. The

financial reporting framework that has been applied in their preparation is applicable law and United

Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting

Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting

Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the Group‟s and of the Association‟s affairs as at 31 March 2019 and of the Group‟s and the Association‟s surplus for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been properly prepared in accordance with the requirements of the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2015.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and

applicable law. Our responsibilities under those standards are further described in the Auditor‟s

responsibilities for the audit of the financial statements section of our report. We are independent of the

Group and Association in accordance with the ethical requirements that are relevant to our audit of the

financial statements in the UK, including the FRC‟s Ethical Standard, and we have fulfilled our other ethical

responsibilities in accordance with these requirements. We believe that the audit evidence we have

obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to

report to you where:

the board members use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

the board members have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Group‟s or the Association‟s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The board are responsible for the other information. Other information comprises the information included in

the annual report, other than the financial statements and our auditor‟s report thereon. Our opinion on the

financial statements does not cover the other information we do not express any form of assurance

conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information

including the Strategic Report and Report of the Board and, in doing so, consider whether the other

information is materially inconsistent with the financial statements or our knowledge obtained in the audit or

otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent

material misstatements, we are required to determine whether there is a material misstatement in the

financial statements or a material misstatement of the other information. If, based on the work we have

performed, we conclude that there is a material misstatement of this other information we are required to

report that fact.

We have nothing to report in this regard.




Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic report and the Report of the Board for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic report and Report of the Board have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the Parent Association and its

environment obtained in the course of the audit, we have not identified material misstatements in the

Strategic report and Report of the Directors.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006

requires us to report to you if, in our opinion;

adequate accounting records have not been kept by the parent association, or returns adequate for our audit have not been received from branches not visited by us; or

the parent association financial statements are not in agreement with the accounting records and returns; or

certain disclosures of board member and or directors‟ remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit; or

Responsibilities of the board

As explained more fully in the board members responsibilities statement, the board is responsible for the

preparation of the financial statements and for being satisfied that they give a true and fair view, and for

such internal control as the board members determine is necessary to enable the preparation of financial

statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the board are responsible for assessing the Group and the

Association‟s ability to continue as a going concern, disclosing, as applicable, matters related to going

concern and using the going concern basis of accounting unless the board either intend to liquidate the

Group or the Association or to cease operations, or have no realistic alternative but to do so.




Auditor’s responsibilities for the audit of the financial statements

This report is made solely to the members of the Association, as a body, in accordance with in accordance with the Housing and Regeneration Act 2008 and Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Association‟s members those matters we are required to state to them 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 and the members as a body, for our audit work, for this report, or for the opinions we have formed.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are

free from material misstatement, whether due to fraud or error, and to issue an auditor‟s report that includes

our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit

conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,

they could reasonably be expected to influence the economic decisions of users taken on the basis of these

financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the

Financial Reporting Council‟s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part

of our auditor‟s report.

Kyla Bellingall (Senior Statutory Auditor) For and on behalf of BDO LLP, Statutory Auditor

Two Snowhill

Birmingham

B4 6GA

Date:

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

http://www.frc.org.uk/auditorsresponsibilities



Consolidated Statement of Comprehensive Income

Note 2019 2018 £'000 £'000 Turnover 3 33,263 32,668 Operating costs 3 (28,040) (27,368) ________ ________ Operating surplus 3,6 5,223 5,300 Surplus on disposal of fixed assets

9 270 127

Other interest receivable and similar income

17 3

Movement in fair value of investment properties

15 50 10

Interest and financing costs 11 (3,040) (2,851)

________ ________ Surplus before and after taxation and total comprehensive income for the year 2,520 2,589 ________ ________

All activities are continuing. The notes on pages 51 to 77 form part of these financial statements



Association Statement of Comprehensive Income Note 2019 2018 £'000 £'000 Turnover 3 18,967 18,419 Operating costs 3 (13,909) (13,529) ________ ________ Operating surplus 3,6 5,058 4,890

Surplus on disposal of fixed assets

9 270 127

Other interest receivable and similar income

17 3

Movement in fair value of investment properties 15

50 10 Interest and financing costs 11

(3,040) (2,851)

________ ________ Surplus before and after taxation

2,355

2,179

Other comprehensive income for the year

10 - -

________ ________

Total comprehensive income for the year

2,355

2,179

________ ________

The Association's results all relate to continuing activities. The notes on pages 51 to 77 form part of these financial statements



Consolidated Statement of Financial Position Note 2019 2019 2018 2018 £'000 £'000 £'000 £'000 Fixed assets Tangible assets Housing Properties - Cost 13 185,886 182,334 - Depreciation 13 (31,663) (29,229) ________ ________ 154,223 153,105 Other fixed assets Investment properties

14 15

3,324 1,380

3,236 1,330

________ ________ Total fixed assets 158,927 157,671 Current assets Stocks 17 57 59 Debtors – receivable within one year

18

3,052

4,370

Cash at bank and in hand 6,269 7,283 ________ ________ 9,378 11,712 Creditors: amounts falling due within one year 19 (8,508) (10,040) ________ ________ Net current assets 870 1,672 ________ ________ 159,797 159,343 Creditors: amounts falling due after more than one year 20 (135,962) (138,007) Provisions for liabilities 21 - (21) ________ ________

Total net assets 23,835 21,315

________ ________

Income and expenditure reserve 22,257 19,678 Restricted reserve Revaluation Reserve

464 1,114

523 1,114

________ ________ Accumulated funds 23,835 21,315 ________ ________ The financial statements were approved by the Board on 29 July 2019 and were signed on its behalf by: Andrew Ballard Colin Small Andrew Cooke Chair of the Group Board Chair of the Group Company Secretary Audit & Assurance Committee

The notes on pages 51 to 77 form part of these financial statements.



Association Statement of Financial Position

2019 2019 2018 2018 Note £'000 £'000 £'000 £'000 Fixed assets Tangible assets Housing properties - Cost 13 185,886 182,334 - Depreciation 13 (31,663) (29,229) ________ ________ 154,223 153,105 Other fixed assets 14 3,083 3,057 Investment properties 15 1,380 1,330 ________ ________ Total fixed assets 158,686 157,492 Current assets Stocks 17 48 50 Debtors - receivable within one year

18

1,828

2,616

Cash at bank and in hand 4,904 6,129 ________ ________ 6,780 8,795 Creditors: amounts falling due within one year 19 (7,972) (9,103) ________ ________ Net current assets/(liabilities) (1,192) (308) ________ ________ 157,494 157,184 Creditors: amounts falling due after more than one year 20 (135,962) (138,007) ________ ________ Total net assets

21,532

________

19,177

________ Share capital

22

-

-

Income and expenditure reserve 20,418 18,063 Restricted reserve - - Revaluation Reserve 1,114

________ 1,114

________ Accumulated funds 21,532 19,177 ________ ________

The financial statements were approved by the Board on 29 July 2019 and were signed on its behalf by: Andrew Ballard Colin Small Andrew Cooke Chair of the Group Board Chair of the Group Company Secretary Audit & Assurance Committee




Consolidated Statement of changes in reserves

Income and

expenditure

Restricted

Revaluation

reserve reserve reserve Total £'000 £'000 £'000 £'000

Balance at 1 April 2018 Surplus/(deficit) for the year Other Comprehensive Income Unrealised surplus/(deficit) on revaluation of housing properties

19,678

2,529

50

523

(59)

-

1,114

-

-

21,315

2,470

50

________ ________ ________ ________

Balance at 31 March 2019 22,257 464 1,114 23,835 ________ ________ ________ ________

Income and expenditure

Restricted

Revaluation

reserve reserve reserve Total

£'000 £'000 £'000 £'000


17,446

2,222

10

166

357

-

1,114

-

-

18,726

2,579

10

________ ________ ________ ________

Balance at 31 March 2018 19,678 523 1,114 21,315

________ ________ ________ ________




Association Statement of changes in reserves

Income and

expenditure

Restricted

Revaluation

account reserve reserve Total £'000 £'000 £'000 £'000


18,063

2,305

50

-

-

-

1,114

-

-

19,117

2,305

50

________ ________ ________ ________ Balance at 31 March 2019 20,418 - 1,114 21,532 ________ ________ ________ ________

Income and

expenditure

Restricted

Revaluation

account reserve reserve Total £'000 £'000 £'000 £'000


15,897

2,186

10

17

(17)

-

1,114

-

-

16,998

2,169

10

________ ________ ________ ________ Balance at 31 March 2018 18,063 - 1,114 19,177 ________ ________ ________ ________




Consolidated Statement of Cash Flows

2019 2019 2018 2018 £'000 £'000 £'000 £'000 Cash Flow from operating activities Surplus for the financial year 2,520 2,589 Adjustments for: Depreciation of Housing Properties 2,622 2,571 Depreciation of Other Fixed Assets 759 808 Grant amortisation (897) (911) Investment property revaluation (50) (10) Interest payable and finance costs 3,040 2,851 Interest received (17) (3) Surplus on disposal of fixed assets (269) (64) Decrease / (increase) in debtors 1,318 (1,775) Decrease / (increase) in stocks 2 (10) (Decrease) / increase in creditors (1,678) 2,257 (Decrease) / increase in provisions (21) 21

Net cash generated from operating activities 7,329 8,324 Cash flow from investing activities Proceeds from sale of Housing Properties 575 423 Purchase of Housing Properties (3,980) (6,642) Purchase of Other Fixed Assets (848) (724) Receipt of grant 599 683 Interest received 17 3

Net cash from investing activities (3,637) (6,257) Cash flow from financing activities Interest paid (2,944) (2,794) New loans – bank 1,500 4,000 Debt issue costs incurred (27) (94) Repayment of loans – bank (3,235) (3,088)

Net cash used in financing activities (4,706) (1,976)

Net (decrease) / increase in cash and equivalents (1,014) 91 Cash and cash equivalents at beginning of year 7,283 7,192

Cash and cash equivalents at end of year 6,269 7,283




Notes to the financial statements

1 Legal status

The Association and its subsidiary, Trident Charitable Housing Association Limited, are both incorporated under the Co-operative and Community Benefit Societies Act 2016, are registered social landlords, and exempt charities. Trident Reach the People Charity is incorporated under the Companies Act 2006 and is registered as a charity. Trident Star Limited, a company limited by shares, is incorporated under the Companies Act 2006.

2 Accounting policies

The financial statements of the Group and Association are prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP) including Financial Reporting Standard 102 (FRS 102) and the Housing SORP 2014: Statement of Recommended Practice for Registered Social Housing Providers and comply with the Accounting Direction for Private Registered Providers of Social Housing 2015.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires group management to exercise judgement in applying the group‟s accounting policies (see below). Basis of consolidation The Group accounts consolidate the accounts of the association and all its subsidiaries at 31 March 2019 as if they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. The consolidated financial statements incorporate the results of business combinations using the purchase method. Significant judgements and estimates In preparing these financial statements, the key judgements and estimates have been made in respect of the following:

Impairment of tangible assets

A key judgement has been made in respect of whether there are indicators of impairment of the

Group‟s tangible assets. Factors taken into consideration in reaching such a decision include the

economic viability and expected future financial performance of the asset and where it is a component

of a larger cash-generating unit, the viability and expected future performance of that unit.

The Group undertakes a cyclical review of all its assets which includes a programme of independent

stock condition surveys and building safety assessment. We can confirm that there have been no

significant issues identified in respect to the physical condition of any property or other factors that

could negatively impact on asset value or future operational life.

Fire risk assessments are updated annually or sooner (subject to risk) supported remedial programme

to ensure that all our properties comply with the relevant fire safety legislation and guidelines. Trident

does not manage or own any residential high-rise buildings with combustible cladding systems (i.e.

Aluminium Composite Material).

The Association obtained a valuation from Nationwide in February 2019 for their charged stock that

shows an EUV of £81.9m. Further stock is held through Barclays charged assets and THFC loan

facilities.




2 Accounting policies (continued)

We have also considered the following additional impairment indicators: -

Long term voids – there are 21 long term voids this represents an insignificant proportion of the

total stock.

Obsolescence – there has been no unexpected decline in asset values.

This provides sufficient reassurance that no impairment provisions are necessary in 2018/19.

Useful Economic Life of components Each component has been assessed and an asset life determined. The useful life used for asset management purposes has been used in the accounts.

Financial instruments – borrowings – Negative compensation and funding indemnity clauses

Management have assessed the Association‟s loan facilities as basic financial instruments. The

Association‟s fixed rate loan facilities allow early payment of the principal and accrued interest in

relation to fixed interest tranches. There is an indemnity clause that requires the borrower to pay a

compensation premium to the lender if market rates have fallen since the inception of the loan. There

is also a clause that means that if market rates have increased, the borrower (i.e. Trident) would

benefit from a compensation premium.

Management do not consider that the clause allowing Trident to potentially receive a compensation

premium upon early repayment of some or all of the fixed rate loan liability makes this financial

instrument „non-basic‟ or „other‟ as outlined in FRS 102 section 11. Management consider that this

particular loan clause is specifically compliant with section 11.9b) and 11.9c) of FRS 102 and that the

substance of this loan arrangement was always that it was always intended to be a simple fixed rate

loan arrangement.

Investment properties

An estimate relates to the determination of carrying value of investments at fair value through profit and loss. In determining this amount, the Group follows the International Private Equity and Venture Capital Valuation Guidelines, applying the overriding concept that fair value is the amount for which an asset can be exchanged between knowledgeable willing parties in an arm‟s length transaction. The nature, facts and circumstance of the investment drives the valuation methodology. 13 properties were identified as being market rent property. These properties are therefore not held for social benefit and have been re-classified as an investment property at valuation £1.330m and will not be depreciated.

Recoverability of debtors

The estimate for receivables relates to the recoverability of the balances outstanding at year end. A review is performed based on assessing collectability at an individual debtor level to consider whether the debt is recoverable. The business provides 100% against debts from former tenants (FT) and 40% against debts from current tenants (CT). The provision for FT has reverted back to 100% in the year based on evidence relating to recoverability. In terms of 40% CT provision, an assessment based on % recoverability based on age profile has been used, supported by the Revenue Recognition Team with adjustments made as required. Turnover and revenue recognition Turnover comprises rental income receivable in the year, income from shared ownership first tranche sales, sales of properties built for sale and other services included at the invoiced value (excluding VAT) of goods and services supplied in the year and revenue grants receivable in the year.




2 Accounting policies (continued) Rental and service charge income is recognised from the point when properties under development reach practical completion or otherwise become available for letting. Income from first tranche sales and sales of properties built for sale is recognised at the point of legal completion of the sale. Revenue grants are receivable when the conditions for receipt of agreed grant funding have been met. Charges for support services funded under Supporting People are recognised as they fall due under the contractual arrangements with administering authorities. Service charges

The Group adopts the variable method for calculating and charging service charges to its tenants and leaseholders. Expenditure is recorded when a service is provided and charged to the relevant service charge account or to a sinking fund. Income is recorded based on the estimated amounts chargeable. Value added tax The Group charges Value Added Tax (VAT) on some of its income and is able to recover part of the VAT it incurs on expenditure. The financial statements include VAT to the extent that it is suffered by the Group and not recoverable from HM Revenue and Customs. The balance of VAT payable or recoverable at the year end is included as a current liability or asset. Interest payable Interest is capitalised on borrowings to finance developments to the extent that it accrues in respect of the period of development if it represents either: a) Interest on borrowings specifically financing the development programme after deduction of social

housing grant (SHG) received in advance; or

b) A fair amount of interest on borrowings of the Association as a whole after deductions of SHG received in advance to the extent that they can be deemed to be financing the development programme.

Other interest payable is charged to the income and expenditure account in the year.

Disclosure exemptions

In preparing the separate financial statements of THA, advantage has been taken of the following

disclosure exemptions available in FRS 102:

Only one reconciliation of the number of shares outstanding at the beginning and end of the period has been presented as the reconciliations for the Group and THA company would be identical;

No cash flow statement has been presented for the parent company, THA;

Disclosures in respect of THA‟s financial instruments have not been presented as equivalent disclosures have been provided in respect of the Group as a whole; and

No disclosure has been given for the aggregate remuneration of the key management personnel of THA, as their remuneration is included in the totals for the Group as a whole.

Going Concern

After making enquiries and reviewing the financial plan, the Board has a reasonable expectation that

the Group has adequate resources to continue in operational existence for the foreseeable future. For

this reason it continues to adopt the going concern basis in the financial statements.




2 Accounting policies (continued) Pensions Final salary scheme This scheme was closed to new entrants as at 31 March 2002 and the benefits of members secured with an insurance company in December 2013. Money purchase scheme Contributions payable to this pension scheme are charged to the income and expenditure account in the period to which they relate. Housing properties Housing properties are principally properties available for rent and are stated at cost less depreciation. Cost includes the cost of acquiring land and buildings, development costs, interest charges incurred during the development period and expenditure incurred in respect of improvements. The Association's development programme is managed by the lead social housing provider in the Matrix Partnership, whose management costs relating to development are charged to the Association and capitalised. Development department costs are capitalised where they are directly attributable to bringing the properties into working condition for their intended use. Directly attributable costs are the labour costs of our employees arising directly from the construction or acquisition of the property and incremental costs that would have been avoided only if individual properties had not been constructed or acquired. Works to existing properties which replace a component that has been treated separately for depreciation purposes, along with those works that result in an increase in net rental income over the lives of the properties, thereby enhancing the economic benefits of the assets, are capitalised as improvements. Shared ownership properties are split proportionally between current and fixed assets based on the element relating to expected first tranche sales. The first tranche proportion is classed as a current asset and related sales proceeds included in turnover. The remaining element is classed as a fixed asset and included in housing properties at cost, less any provisions needed for depreciation or impairment. Investment properties Investment properties consist of commercial properties and other properties not held for the social benefit or for use in the business. Investment properties are measured at cost on initial recognition and subsequently at fair value as at the year end, with changes in fair value recognised in income and expenditure. Fair value is determined by external valuers. No depreciation is provided. Debtors and creditors Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in other operating expenses. Holiday pay accrual A 31 March year end for holidays was adopted across the Group during 2018/19, with no carry forward of unused holiday pay allowed.

At 31 March 2018 a liability was recognised to the extent of any unused holiday pay entitlement which had accrued at that date and carried forward to future periods. This was measured at the undiscounted salary cost of the accrued future holiday entitlement.




2 Accounting policies (continued) Government grants Grants received since the transition date in relation to newly acquired or existing housing properties is accounted for using the accrual model set out in FRS 102 and the Housing SORP 2014. Grant is carried as deferred income in the balance sheet and released to income and expenditure account on a systematic basis over the useful economic lives of the asset for which it was received. In accordance with Housing SORP 2014 the useful economic life of the housing property structure has been selected (see below). Recycled capital grant fund On the occurrence of certain relevant events, such as the sale of property, Homes England can direct the Association to recycle capital grants or to make repayments of the recoverable amount. The Group adopts a policy of recycling, for which a separate fund is maintained (recycled capital grant fund or RCGF). If unused within a three year period, it will be repayable to Homes England with interest. Any unused recycled capital grant held within the RCGF, which it is anticipated will not be used within one year is disclosed in the balance sheet under creditors due after more than one year. The remainder is disclosed under creditors due within one year. Depreciation Housing land and buildings Freehold land is not depreciated. Depreciation of housing properties is charged so as to write off the cost of freehold housing properties (net of social housing and other grants) to their estimated residual value on a straight line basis over their expected useful economic lives as follows:

Housing Properties - 100 years Major components: Kitchens - 20 years Gas boilers/fires - 15 years Bathrooms - 30 years Windows and external doors - 30 years Electrics - 40 years Roof structure and covering - 70 years Mechanical systems (heating, ventilation , plumbing) - 30 years Environmental Works - 30 years

Housing properties, including those with individual components, which are depreciated over a period in excess of 50 years are subject to impairment reviews annually. Other assets are reviewed for impairment if there is an indication that impairment may have occurred. Where there is evidence of impairment, fixed assets are written down to their recoverable amount, being the higher of the net realisable value or the value in use to the Group. Any such write down is charged to operating surplus.




2 Accounting policies (continued) Other fixed assets Depreciation is calculated to write off the cost less estimated residual value of other fixed assets on a straight line basis over their estimated lives as follows:

Housing fixtures and fittings - 15 to 30 years Motor vehicles - 2 to 5 years Housing furniture and

equipment - 5 to 7 years

Direct labour equipment - 3 years Tenant amenities equipment - 5 to 10 years Office equipment - 4 to 10 years Leasehold offices - 70 years

Leased assets Assets held under finance leases are included in the balance sheet and depreciated in accordance with the Group‟s normal accounting policies. The present value of future rentals is shown as a liability. The interest element of rental obligations is charged to the income and expenditure account over the period of the lease in proportion to the balance of capital repayments outstanding. Rentals payable under operating leases are charged to the income and expenditure account on a straight line basis over the lease term. Heritage assets There is no active acquisition policy for acquiring heritage assets. Any assets acquired are held as part of the social investment strategy and are held at cost. The assets are maintained and preserved in accordance with the title restrictions and are accounted for under FRS 102. Stock and properties for sale Stock represents work in progress and completed properties, including housing properties developed for transfer to other registered providers; properties developed for transfer to other registered providers; properties developed for outright sale; shared ownership properties. For shared ownership properties the value held as stock is the estimated cost to be sold as a first tranche. Stock is stated at the lower of cost and net realisable value. Cost comprises materials, direct labour and direct development overheads. Net realisable value is based on estimated sales proceeds after allowing for all further costs to completion and selling costs. Loans, investments and short term deposits All loans, instruments and short term deposits held by the Group, with the exception of the Lenders Option Borrowers Option Loan and Cancellable embedded option arrangements are classified as basic financial instruments in accordance with FRS 102. These instruments are initially recorded at the transaction price less any transaction costs (historical cost), FRS102 requires that basic financial instruments are subsequently measured at amortised cost, however the Group has calculated that the difference between the historical cost and amortised cost basis is not material and so these financial instruments are stated on the balance sheet at historical cost. Loans and instruments that are payable or receivable within one year are not discounted. Financial liabilities and equity Financial liabilities and equity are classified according to the substance of the financial instrument‟s contractual obligations, rather than the financial instrument‟s legal form.




2 Accounting policies (continued) Cash and cash equivalents Cash and cash equivalents in the Group‟s Consolidated Statement of Financial Position consists of cash at bank, in hand, deposits and short term investments with an original maturity of three months or less. Reserves Income received, and expenditure incurred, for restricted purposes is separately accounted for within restricted funds. Realised and unrealised gains and losses on assets held by these funds are also allocated to the fund. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the funders or which have been raised by the charity for a particular purpose. The revaluation reserve is created from surpluses on asset revaluation. Agency managed units In respect of units owned by the Association where the managing agent suffers the risks and has control of the benefits, the income and expenditure and related assets and liabilities are not included in the financial statements.

Leasehold sinking funds

Unexpected amounts collected from leaseholders for major repairs on leasehold schemes and any interest received are included in creditors.




3 Turnover, operating costs and operating surplus Operating Operating Operating Operating Turnover costs surplus Turnover costs surplus 2019 2019 2019 2018 2018 2018 Group £'000 £'000 £'000 £'000 £'000 £'000 Social Housing Lettings General needs housing 10,481 (7,648) 2,833 10,238 (6,872) 3,366 Supported housing 6,769 (5,175) 1,594 6,554 (5,693) 861 Shared ownership 344 (204) 140 341 (243) 98 ________ ________ ________ ________ ________ ________ 17,594 (13,027) 4,567 17,133 (12,808) 4,325 ________ ________ ________ ________ ________ ________ Other Social Housing Activities Care and support services 13,397 (13,366) 31 13,455 (13,122) 333 Activities other than Social Housing Activities Home owners 279 (243) 36 266 (232) 34 Market rents and other income 1,097 (1,404) (307) 895 (1,206) (311) ________ ________ ________ ________ ________ ________ 1,376 (1,647) (271) 1,161 (1,438) (277) Grant amortisation 896 - 896 919 - 919 ________ ________ ________ ________ ________ ________ Total 33,263 (28,040) 5,223 32,668 (27,368) 5,300 ________ ________ ________ ________ ________ ________




3 Turnover, operating costs and operating surplus

Operating Operating Operating Operating Turnover costs surplus Turnover costs surplus 2019 2019 2019 2018 2018 2018 Association £'000 £'000 £'000 £'000 £'000 £'000 Social Housing Lettings General needs housing 10,481 (7,648) 2,833 10,238 (6,873) 3,365 Supported housing 6,119 (4,596) 1,523 5,957 (5,088) 869 Shared ownership 344 (204) 140 341 (243) 98 ________ ________ ________ ________ ________ ________ 16,944 (12,448) 4,496 16,536 (12,204) 4,332 ________ ________ ________ ________ ________ ________ Activities other than Social Housing Activities Home owners 279 (243) 36 267 (232) 35 Market rents and other income 848 (1,218) (370) 697 (1,093) (396) ________ ________ ________ ________ ________ ________ 1,127 (1,461) (334) 964 (1,325) (361) Grant amortisation 896 - 896 919 - 919 ________ ________ ________ ________ ________ ________ Total 18,967 (13,909) 5,058 18,419 (13,529) 4,890 ________ ________ ________ ________ ________ ________




4 Income, Expenditure and Operating surplus on social housing lettings General Needs Supported Shared Housing housing ownership Total Total 2019 2019 2019 2019 2018 Group £'000 £'000 £'000 £'000 £'000 Income Rents receivable 9,448 4,379 312 14,139 13,867 Service charges

receivable 1,033 2,390 32 3,455 3,265 ________ ________ ________ ________ ________ Net rental income 10,481 6,769 344 17,594 17,132 ________ ________ ________ ________ ________

Expenditure

Services (1,412) (2,708) (30) (4,150) (4,125)

Management (1,482) (575) (104) (2,161) (2,250)

Responsive

maintenance (1,929) (518) (14) (2,461) (2,245)

Planned

maintenance (969) (153) (4) (1,126) (844)

Bad debts (242) (260) (8) (510) (771)

Depreciation of

housing properties (1,614) (961) (44) (2,619) (2,572)

________ ________ ________ ________ ________

(7,648) (5,175) (204) (13,027) (12,807)

________ ________ ________ ________ ________

Operating surplus

on social housing

lettings 2,833 1,594 140 4,567 4,325

________ ________ ________ ________ ________

Void losses (157) (637) (2) (796) (762)

________ ________ ________ ________ ________




4 Income, Expenditure and Operating surplus on social housing lettings (continued)

General needs Supported Shared housing housing ownership Total Total 2019 2019 2019 2019 2018 Association £'000 £'000 £'000 £'000 £'000 Income Rents receivable 9,448 3,989 312 13,749 13,479 Service charges receivable 1,033 2,130 32 3,195 3,057 ________ ________ ________ ________ ________ Net rental income 10,481 6,119 344 16,944 16,536 ________ ________ ________ ________ ________

Expenditure

Services (1,412) (2,505) (30) (3,947) (3,930)

Management (1,482) (306) (104) (1,892) (1,985)

Responsive maintenance (1,929) (453) (14) (2,396) (2,172)

Planned maintenance (969) (153) (4) (1,126) (844)

Bad debts (242) (218) (8) (468) (700)

Depreciation of housing properties (1,614) (961) (44) (2,619) (2,572)

________ ________ ________ ________ ________

(7,648) (4,596) (204) (12,448)

(12,203)

________ ________ ________ ________ ________

Operating surplus on social

housing lettings 2,833 1,523 140 4,496 4,333

________ ________ ________ ________ ________

Void losses (157) (473) (2) (632) (610)

________ ________ ________ ________ ________




5 Accommodation in management and development 2019 2018 Group Number Number Social Housing General needs housing - Social 2,094 2,093 - Affordable 348 287 Supported housing and housing for older people 369 370 Care Homes 58 58 Low cost home ownership 84 91 Home Owners 288 288 ________ ________ Total social housing 3,241 3,187 ________ ________

The basis of allocation of properties is based upon definitions as set out in the Welfare Reform and Work Act.

2019 2018 Group Number Number Non social housing Market rent 134 149 Commercial shop lets 11 11 ________ ________

Total non social housing 145 160 ________ ________ Total owned and managed 3,386 3,347 ________ ________ Housing under development - 48 ________ ________ The group owns 35 properties (2018: 35) that are managed on its behalf, under management agreements,

by other bodies. Included in the above Group figures are 10 (2018: 10) commercial units which are managed by Trident Star.

All other units are managed by, or under the development of, the Association.




6 Operating surplus

Group Group Association Association

2019 2018 2019 2018

£'000 £'000 £'000 £'000

The operating surplus for the year is stated after charging:

Depreciation of housing properties-

annual charge

Depreciation of housing properties –

Accelerated depreciation on replaced

2,576

46

2,498

73

2,576

46

2,498

73

components

Depreciation of other tangible

fixed assets 759 808 668 703

Rent losses from bad debts 510 771 468 700

Operating lease charges

- land and buildings 640 649 246 222

- other 248 243 296 223

Auditors' remuneration

(excluding VAT):

- Fees payable to the Company's

auditors for the audit of the

financial statements 22 21 22 21

- Audit of the financial statements

of the Company's subsidiaries

pursuant to legislation 9 9 - -

________ ________ ________ ________




7 Staff costs 2019 2018 Group (excluding temporary agency costs) £'000 £'000 Wages and salaries 12,209 12,903 Social security costs 945 990 Cost of defined contribution scheme 222 178 ________ ________ 13,376 14,071 ________ ________ Average number of full-time equivalent persons (including the

Chief Executive) employed during the year based on a standard working week of 36.5 hours.

Group Number Number Office staff 163 158 Care and support staff 430 426 Maintenance staff 27 28 ________ ________ Total employees 620 612 ________ ________ Association (excluding temporary agency costs) £'000 £'000 Wages and salaries 3,905 2,635 Social security costs 316 268 Cost of defined contribution scheme 77 66 ________ ________ 4,298 2,969 ________ ________ Average number of full-time equivalent persons (including the

Chief Executive) employed during the year based on a standard working week of 36.5 hours.

Number Number Office staff 89 85 Maintenance staff 23 18 ________ ________ Total employees 112 103 ________ ________

Pension costs include the defined contribution scheme which was introduced following the closure of the final salary scheme in 2002. All contributions have been paid during the year in respect of the defined contribution scheme. The Group introduced auto enrolment on 1 November 2014.




8 Board members and executive directors The key management personnel of the Group comprise the Executive

Directors.

2019 2018 £'000 £'000 Executive Directors‟ emoluments 376 391 Compensation for loss of office 33 - Pension contributions 21 22 ________ ________ 430 413 ________ ________

The full time equivalent number of staff who received emoluments:

2019 2018 Number Number £60,000 to £70,000 - - £70,001 to £80,000 1 - £80,001 to £90,000 - 1 £90,001 to £100,000 - 2 £100,001 to £110,000 - - £110,001 to £120,000 1 1 £120,001 to £130,000 - - £130,001 to £140,000 1 - ________ ________ The Chief Executive is an ordinary member of the pension scheme. The pension scheme is a money purchase

pension scheme funded by annual contributions by the employer and the employee. No enhanced or special terms apply. There are no additional pension arrangements.

The emoluments of directors disclosed above (excluding pension contributions but including benefits in kind)

include amounts paid to:

2019 2018 £'000 £'000 The highest paid director - Chief Executive 132 118 ________ ________




8

Board members and executive directors (continued)

The following were members of the committees set out below and received remuneration for this as detailed

Remuneration

Audit & Assurance Committee

Remuneration & Nomination Committee

Safeguarding Committee

Group Board of

Management

Andrew Ballard 13,000 x x x

Yvonne Leishman 5,000 x x

Brian Carr 5,000 x x x

Rob Turton 3,000 x x

Katie Kershaw 5,000 x x

Colin Small 7,500 x x x

Nathan Talbott 5,000 x x

Simon Hatchman 5,000 x x Rosemarie Anderson 5,000 x x

Andrew Cooke 0 x x

John Morris 0 x x x x

53,500

Rob Turton retired during 2018/19, with Simon Hatchman and Andrew Cooke being appointed during the year.

9 Surplus on sale of properties

Shared ownership: further Other Total Total tranches Disposals 2019 2018 £'000 £'000 £'000 £'000 Proceeds of sales 421 154 575 423 Less: costs of sale (233) (72) (305) (296) ________ ________ ________ ________ Surplus on disposal of fixed assets 188 82 270 127 ________ ________ ________ ________

10 Income from investments

No dividends were received in 2019.




11 Interest and financing costs 2019 2018 Group and Association £'000 £'000 Bank loans 3,035 2,884 Indexation 40 22 ________ ________ 3,075 2,906 Less: Interest capitalised on construction of housing properties (35) (55) ________ ________ 3,040 2,851 ________ ________

The average rate used to capitalise interest in 2019 was 2.2% (2018: 2.1%).

12 Taxation

The Association and its subsidiary, Trident Reach the People Charity, both have charitable status and therefore are not liable to pay Corporation Tax. Trident Star Limited, a company limited by shares and incorporated under the Companies Act 2006, is subject to corporation tax. The company made a surplus in the year and believe that no tax is due on the surplus in Trident Star Limited due to Gift Aid and brought forward losses.




13 Tangible fixed assets - housing properties

General needs Shared ownership Supported Under Under Under Completed construction Completed construction Completed Construction Total Group and Association £'000 £'000 £'000 £'000 £'000 £'000 £'000 Cost At 1 April 2018 105,565 4,548 11,771 - 60,450 - 182,334 Reclassification - - - - - - Additions - 2,596 - - - - 2,596 Properties Acquired - - - - - - - Works to Existing Properties 1,265 - - - 154 - 1,419 Schemes completed 7,144 (7,144) - - - - - Disposal (80) - (147) - (97) - (324) Replacement of components (129) - - - (10) - (139) ________ ________ ________ ________ ________ ________ ________ At 31 March 2019 113,765 - 11,624 - 60,497 - 185,886 ________ ________ ________ ________ ________ ________ ________ Depreciation At 1 April 2018 23,391 - 754 - 5,084 - 29,229 Charge for the year 1,789 - 45 - 742 - 2,576 Accelerated depreciation on replaced

assets 44 - - - 2 - 46 Depreciation on disposals (141) - (31) - (16) - (188) ________ ________ ________ ________ ________ ________ ________ At 31 March 2019 25,083 - 768 - 5,812 - 31,663 ________ ________ ________ ________ ________ ________ ________

Net book value

At 31 March 2019 88,682 - 10,856 - 54,685 - 154,223

________ ________ ________ ________ ________ ________ ________

At 31 March 2018 82,174 4,548 11,017 - 55,366 - 153,105

________ ________ ________ ________ ________ ________ ________

Expenditure on works to existing properties comprised new components capitalised £553,426 (2018: £424,925) and capitalised improvements £865,530 (2018: £502,377). Major works charged to the income and expenditure account during the year totalled £108,187 (2018: £70,472).

Page | 69 Trident Housing Association Limited and its subsidiaries



14 Other Tangible fixed assets Leasehold Plant and office equipment Total Group £'000 £'000 £'000 Cost At 1 April 2018 1,574 12,964 14,538 Additions - 848 848 Disposals - (22) (22) ________ ________ ________ At 31 March 2019 1,574 13,790 15,364 ________ ________ ________ Depreciation At 1 April 2018 672 10,630 11,302 Charge for the year 54 705 759 Disposals - (21) (21) ________ ________ ________ At 31 March 2019 726 11,314 12,040 ________ ________ ________ Net book value At 31 March 2019 848 2,476 3,324 ________ ________ ________ At 31 March 2018 902 2,334 3,236 ________ ________ ________ Association Cost At 1 April 2018 1,540 12,121 13,661 Additions - 695 695 Disposals - (8) (8) ________ ________ ________ At 31 March 2019 1,540 12,808 14,348 ________ ________ ________ Depreciation At 1 April 2018 610 9,994 10,604 Charge for the year 23 645 668 Disposals - (7) (7) ________ ________ ________ At 31 March 2019 633 10,632 11,265 ________ ________ ________ Net book value At 31 March 2019 907 2,176 3,083 ________ ________ ________ At 31 March 2018 930 2,127 3,057 ________ ________ ________




15 Investment properties Group and Association 2019 2018 2017 £’000 £‟000 At 1 April 2018 1,330 1,320 Revaluation 50 10 _____ _____ 1,380 1,330 At 31 March 2019 _ __ _ __

Thirteen market rent properties are held at valuation. The fair value has been determined by external valuers JLL. The historic cost amount is £116k. In valuing investment properties, a discounted cash flow methodology was adopted with the following key assumptions: - Discount Rate 7.75% - 8.00% Level of Long Term Annual Rent Increase 1.00% - 3.00% The surplus on revaluation of investment property of £50k has been credited to the Statement of Comprehensive Income for the year.

16 Fixed asset investments – Group undertakings

As at 31 March 2019, the Association had the following Group undertakings:

Trident Reach the People Charity Trident Housing Association at all times will have a majority of the votes in Trident Reach the People Charity. Trident Reach the People Charity is a charitable company limited by guarantee and not having a share capital. It was incorporated on 28 November 2008 and registered as a charity on 16 April 2009. It commenced trading on 1 October 2009. Trident Star Limited Trident Housing Association is the sole shareholder in Trident Star Limited, a company limited by shares, incorporated on 27 March 2009. After a period of non-trading, the company was re-launched in 2012/13 as the commercial vehicle of the Group.




16 Fixed asset investments - Group undertakings (continued) All transactions between Group entities are carried out so that no party makes a surplus or deficit on the transaction. Trident Housing Association is the ultimate parent undertaking. During the year the Association had the following intra-group transactions with Trident Reach the People Charity, a non-regulated entity:

Trident Reach the People Charity to Trident Housing Association Intra-group transactions Allocation basis 2019 2018 £'000 £'000 Employment costs of staff at housing

schemes Payroll costs of scheme staff

1,068 1,147 Tenancy Support Service Direct cost of service 29 208 Central Control Department Payroll costs of staff 32 118 Development function Percentage of payroll costs - - Finance Staff Percentage of payroll costs - - ________ ________ 1,129 1,473 ________ ________

Trident Housing Association to Trident Reach the People Charity Intra-group transactions Allocation basis 2019 2018 £'000 £'000 Recharge of rent on care homes Rent agreement 256 286 Service costs relating to care homes Actual costs - - Depreciation of assets Percentage of depreciation

costs 33 48 Employment costs of Executive and

Central Services Percentage of payroll costs

396 394 CRB Checks Direct cost allocation - -

Provision of refurbishment services Labour and material costs 35 22 Office overheads Direct cost allocation 106 122 Vehicle costs Direct cost allocation 15 8 ICT systems Staff numbers 161 96 Audit and insurance brokerage Direct cost allocation 6 5 Consultancies Percentage of Payroll Costs - - ________ ________ 1,008 981 ________ ________




16 Fixed asset investments - Group undertakings (continued) During the year the Association had the following intra-group transactions with Trident Star, a non-regulated entity:

Trident Housing Association to Trident Star

Intra-group transactions Allocation basis 2019 2018 £'000 £'000 Property and Management Finance 18 11 Property 12 7 General Overheads 27 22

57 40

17 Stocks Group Group Association Association 2019 2018 2019 2018 £'000 £'000 £'000 £'000 Maintenance materials and tenant

amenities stocks 57 59 48 50

________ ________ ________ ________

18 Debtors Group Group Association Association 2019 2018 2019 2018 £'000 £'000 £'000 £'000 Amount falling receivable within one

year:

Rental debtors 4,335 4,261 4,335 4,261 Less: provision for bad debts (3,399) (2,846) (3,399) (2,846) ________ ________ ________ ________ 936 1,415 936 1,415 Intercompany debtors - - - 6 Trade and other debtors 562 1,416 257 293 Prepayments and accrued income 1,554 1,539 635 902 ________ ________ ________ ________ 3,052 4,370 1,828 2,616 ________ ________ ________ ________




19 Creditors: amounts falling due within one year

Group Group Association Association 2019 2018 2019 2018 £'000 £'000 £'000 £'000 Housing loans 3,305 3,205 3,305 3,205 Trade creditors 1,200 2,481 928 2,041 Rents & Service Charges Received

in Advance 1,291 1,034 1,291 1,034 Intercompany creditor - - 179 121 Other taxation and social

security costs 263 262 117 83 Other creditors 28 - - - Recycled capital grant fund - - - - Grant creditor 915 871 915 871 Accruals and deferred income 1,506 2,187 1,237 1,748

_________

________

________

________

8,508 10,040 7,972 9,103 ________ ________ ________ ________

20 Creditors: amounts falling due after more than one year 2019 2018 Group and Association £'000 £'000 Housing loans 76,986 78,821 Amortisation of loan fees (602) (706) Recycled Capital Grant Fund 687 573 Grant Creditor 58,891 59,319 ________ ________ 135,962 138,007 ________ ________

Loans are secured by specific charges on the housing properties of the group. The loans bear interest at fixed rates ranging from 0.5% to 12.6% or at variable rates calculated at a margin above the London Inter Bank Offer Rate.

Movements on recycled capital grant fund:

2019 2018 Group and Association £'000 £'000 Opening balance 573 1,414 Inputs to reserve: Grants recycled 114 74 Recycling of grant: New build - (915) ________ ________ Closing balance 687 573 ________ ________



Notes to the financial statements 20 Creditors: amounts falling due after more than one year (continued)

Movements in social housing grant:

2019 2018 Group and Association £'000 £'000 Opening balance 60,190 59,577 Received 599 683 Recycled (114) (74) Transfer from Recycled Capital Grant Fund - 915 Released (869) (911) ________ ________ Closing balance 59,806 60,190 ________ ________ The housing loans are repayable as follows: 2019 2018 £'000 £'000 Group and Association

Housing loans repayable by instalments: Between one and two years 3,319 3,292 Between two and five years 21,124 19,848 Repayable after five years 49,043 52,181 ________ ________ 73,486 75,321 Wholly repayable after five years 3,500 3,500 ________ ________ 76,986 78,821 ________ ________

The carrying values of financial assets and liabilities is summarised below: Group Group Association Association 2019 2018 2019 2018 £'000 £'000 £'000 £'000 Financial assets Measured at undiscounted amounts

receivable

Rent arrears and other debtors 936 1,415 936 1,415 Cash 6,269 7,283 4,904 6,129 Amounts due from related entities - - - 6

_________

________

________

________

7,205 8,698 5,840 7,550 ________ ________ ________ ________



Notes to the financial statements 20 Creditors: amounts falling due after more than one year (continued) Group Group Association Association 2019 2018 2019 2018 £'000 £'000 £'000 £'000 Financial liabilities Measured at amortised cost Loans payable 79,689 81,320 79,689 81,320 Measured at undiscounted amount

payable

Trade and other creditors 1,200 2,481 928 2,041 Amounts owed to related entities - - 179 121

_________

________

________

________

80,889 83,801 80,796 83,482 ________ ________ ________ ________

21 Provisions for liabilities

2019 2018

Sleep-in provision £'000 £'000 Opening balance 21 - Charged to income & expenditure - 21 Released to income & expenditure (21) - ________ ________ Closing balance - 21

________ ________

22 Share capital Association Association 2018 2018 £ £ At start of financial year 51 51 Issued during the year 3 - Cancelled during the year (46) - ________ ________ At end of financial year 8 51 ________ ________

Shares carry no right to a dividend or a distribution on winding up. Shareholders have a right to vote at the annual general meeting. When a shareholder ceases to be a shareholder their share is cancelled and becomes the property of the Association. All shares issued are fully paid. The par value per share is £1.




23 Operating leases

Group

At 31 March 2019 the Group was committed to make the following payments under non-cancellable operating leases in the year to 31 March 2019.

Land and buildings

Other Land and buildings

Other

2019 2019 2019 2018 £'000 £'000 £'000 £'000 Operating leases which expire: Within 1 year 321 42 420 87 Between 1 and 5 years 595 25 773 60 After more than 5 years 4,902 - 5,050 - ________ ________ ________ ________ 5,818 67 6,243 147 ________ ________ ________ ________

Association At 31 March 2019 the Association was committed to make the following payments under non-cancellable operating leases in the year to 31 March 2019.

Land and buildings

Other Land and buildings

Other

2019 2019 2018 2018 £'000 £'000 £'000 £'000 Operating leases which expire: Within 1 year 275 42 281 87 Between 1 and 5 years 575 25 734 60 After more than 5 years 4,867 - 5,012 - ________ ________ ________ ________ 5,717 67 6,027 147 ________ ________ ________ ________

24 Capital Commitments 2019 2018 Group and Association £'000 £'000 Capital expenditure contracted for but not provided for in

the financial statements 122 3,471 ________ ________

The Board expects none of the expenditure they have authorised to be fully financed by SHG, loan finance or other capital grants (2018: 88%).




25 Related party transactions

The Chief Executive Officer was also the company secretary of Shahjalal Housing Co-operative Limited until

he resigned on 30 April 2019. Trident Housing Association Limited had sales of £88,576 (2018: £91,917)

during the year. All transactions took place under normal commercial terms.

Intra-group transactions between regulated and non-regulated entities are detailed in note 16.

12 Fairlie House, Trident Close, Erdington, Birmingham, B23 5TBTel: 0121 633 4633 Fax: 0121 643 0260

Monday-Friday 9.00am - 4.00pmTel: 0121 643 6060 - out of office hours

Freephone (from BT landlines): 0800 111 4944 Mobile (reduced rate): 0300 123 1113www.tridentgroup.org.uk

REPORT AND FINANCIAL STATEMENTS YEAR …...Ann Rivera - Director of People & Performance (resigned...

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Transcript of REPORT AND FINANCIAL STATEMENTS YEAR …...Ann Rivera - Director of People & Performance (resigned...