Paul Gray, Chief Financial Officer, said:
“In 2017/18 we continued to deliver strong financial performance. bpha operates in a region with a high demand for affordable homes and our focus is on our core social housing business. This, together with a carefully controlled development programme, has resulted in improvements in our finances over the five-year period from 2014 to 2018 generating higher surpluses, without reliance on asset sales or non-social housing activities. Our business model focuses upon a tightly defined core operational area across the Oxford to Cambridge corridor, which enables us to maintain close cost control, operate efficiently and thereby deliver value for money.
“Our net cash flow from operating activities is sufficient to cover both debt interest and capital expenditure on existing assets. During the year the net cash generated from operating activities combined with the proceeds from sales covered the majority of expenditure on development.
“Our strong finances and geographic focus mean that we are uniquely positioned to maximise the opportunity within the Oxford to Cambridge corridor. We have a successful track record of delivering new communities and experience of strategic partnerships with universities, hospitals, businesses and other housing associations. For many years we have applied strict controls over development commitments and consequently, our development pipeline means that on completion, new shared ownership and affordable rented homes add to our surpluses and to balance sheet strength.”
The bpha group 2018 Financial Statements are available to view here.