Group Accounts 2004

REGISTERED OFFICE: 3 TRAMWAY AVENUE STRATFORD LONDON E15 4PNSWITCHBOARD: 020 8522 2000 MINICOM: 020 8522 2006 FAX: 020 8522 2001

WWW.EAST-THAMES.CO.UK

REGISTERED UNDER THE COMPANIES ACT 1985 (4091100) REGISTERED CHARITY (1084952)HOUSING CORPORATION REGISTERED NO. LH4309 MEMBER OF THE NATIONAL HOUSING FEDERATION

This publication is printed on recycled paper

Group Accounts 2003-2004

EAST THAMES GROUP LIMITEDFinancial statementsfor the year ended 31 March 2004

Contents3 Board members, senior staff, auditors

and solicitors

4 Report of the Board

7 Report of the auditors

8 Consolidated balance sheet

9 Consolidated income and expenditure account and consolidated statement of total recognised surpluses and deficits

10 Consolidated cash flow statement

11 Parent balance sheet

12 Parent income and expenditure account and Parent statement of total recognised surpluses and deficits

13 Parent cash flow statement

14 Notes to the financial statements

3

Board members, senior staff, auditors and solicitors

Board

Chairman - Mr R. HenchleyVice Chair - Mr J. Mallender (appointed Vice Chair December 2003)Treasurer - Mr C. Villiers

Other Members

Mr O. OlanrewajuMr B. RobertsonMr J. NormanMrs R. Fleming (resigned March 2004)Mr G. McLearyMr C. DankwaMs C. Thomas Mr D. EdwardsMr D. GoodmanMr R. Chilton (co-opted from March 2004)Mr A. Bridgwater (from March 2004)

Senior Staff

Group Chief Executive - Ms J. Barnes Deputy Chief Executive - Mr M. Heys Assistant Chief Executive (Regeneration and New Business) - Mr F. VickeryGroup Director of Development and Technical Services - Mr K. CarterGroup Director of Corporate Services - Ms D. Boakye Director of Information Technology - Ms J. Kutner Group Company Secretary - Mr H. Potter

Registered Office

3 Tramway Avenue, Stratford, LONDON E15 4PN

Auditors

KPMG LLP1 Forest Gate, Brighton Road,Crawley, WEST SUSSEX RH11 9PT

Solicitors

DevonshiresSalisbury House, London Wall, LONDON EC2M 5QY

Trowers and HamlinsSceptre Court, 40 Tower Hill, LONDON EC3N 4DX

Bankers

Barclays Bank plcBusiness Banking, PO Box 544,1st Floor, 54 Lombard Street, LONDON EC3V 9EX

Registered Charity 1084952

Registered under the Companies Act 1985 4091100

Registered by The Housing Corporation No. LH 4309

4

Report of the Board Review of the year

The year again saw significant growth. During the year theGroup has added 464 units of accommodation taking itsportfolio of properties to 11,451 units.

During the year, the Group spent £53.8 million acquiring anddeveloping its housing stock and an additional £3.1 million(including improvements on housing for rent, aids andadaptations and estate improvements) on its continuingsubstantial programme of rehabilitating, modernising andrepairing its housing stock. It is the intention to fully upgradeeach property at least every 25 years.

Performance for the year

The Group achieved a surplus for the year of £8.1 million(2003: £4.6 million). Revenue reserves have increased to£45.5 million (2003: £36.9 million) and restricted,designated reserves and consolidated reserves total£5.1 million (2003: £5.6 million).

Disabled employees

Applications for employment from disabled persons aregiven full and fair consideration for all vacancies, havingregard to their particular aptitude and abilities. In the eventof employees becoming disabled, every effort is made toretain them in order that their employment within theorganisation may continue. It is the policy of the Group thattraining, career development and promotion opportunitiesshould be available to all employees.

Health and Safety

The Group takes its responsibilities for Health and Safetyvery seriously and has established a training andimplementation programme, led by a Health and Safetycommittee dedicated to this topic.

The Board presents its report and auditedfinancial statements for the year ended31 March 2004.

Legal status

The Group is a charity, registered under the CompaniesAct 1985 and is a Registered Social Landlord under theHousing Act 1996. On 1 April 2001 it assumedresponsibility as the parent company for four operatingsubsidiaries, East Thames Housing Association Limited(now East Homes Limited), East Thames Care Limited(now East Living Limited), Boleyn & Forest HousingSociety Limited (now East Choice Limited) and NetworkEast Foyers (now East Potential). On 31 December 2001,it assumed responsibility as the parent company, for EastStreet Services Limited formerly known as B&F CommercialServices Limited, a company established to undertake theGroup’s non-charitable activities.

Principal activities

The Parent Company’s principal activities are the provisionof central services to its operating subsidiaries. The fouroperational subsidiaries are East Thames HousingAssociation Limited (now East Homes Limited) whichprovides social housing, Boleyn & Forest Housing SocietyLimited (now East Choice Limited) which provides low costhome ownership, East Thames Care Limited (now EastLiving Limited) which provides care and supported housingprovision and Network East Foyers (now East Potential)which manages Foyers on behalf of the Group.

5

Report of the Board (continued)Identification and evaluation of key risks

Management responsibility has been clearly defined for theidentification, evaluation and control of significant risks.There is a formal and on-going process of managementreview in each area of the Group’s activities. This processis co-ordinated through a regular reporting framework bythe Group Audit and Risk Management Committee. TheGroup Executive and Officer Risk Management Panelregularly consider reports on significant risks facing theGroup. The Group Chief Executive/relevant ManagingDirector is responsible for reporting to the respectiveBoard(s) any significant changes affecting key risks.

Monitoring and corrective action

A process of control self assessment and regularmanagement reporting on control issues provideshierarchical assurance to successive levels ofmanagement and to the Board. This process continues tobe developed to ensure a rigorous approach and includesaction for ensuring that corrective action is taken in relationto any significant control issues.

Control environment and control procedures

The Board retains responsibility for a defined range ofissues covering strategic, operational, financial andcompliance issues including treasury strategy and newinvestment projects. The Board has adopted the NationalHousing Federation Code of Governance - Competenceand Accountability. This is used as a basis for the Group’spolicies with regard to quality, integrity and ethics. It issupported by a framework of policies and procedures, withwhich employees must comply. These cover issues suchas delegated authority, segregation of duties, accounting,treasury management, health and safety, data and assetprotection and fraud prevention and detection.

Employee involvement

The Group has continued its practice of consulting andkeeping employees informed on matters affecting themand on the progress of the Group. This is carried out in anumber of ways including a formal forum for consultation,departmental meetings and a variety of newsletters.

Donations

The Group made charitable donations during the yearamounting to some £27,749. No donations were given tocharities of which board members are Trustees.

Internal Controls

The Board has overall responsibility for establishing andmaintaining the whole system of internal control and forreviewing its effectiveness. This applies to all companieswithin the East Thames Group.

The Board recognises that no system of internal controlcan provide absolute assurance or eliminate all risk. Thesystem of internal control is designed to manage risk andto provide reasonable assurance that key businessobjectives and expected outcomes will be achieved. It alsoexists to give reasonable assurance about the preparationand reliability of financial and operational information andthe safeguarding of the Group’s assets and interests.

In meeting its responsibilities, the Board has adopted arisk-based approach to internal controls which areembedded within the normal management and governanceprocess. This approach includes the regular evaluation ofthe nature and extent of risks to which the Group isexposed and is consistent with Turnbull principles asincorporated in the Housing Corporation’s circularR2-25/01: Internal Controls Assurance.

The process adopted by the Board in reviewing theeffectiveness of the system of internal control, together withsome of the key elements of the control framework includes:

6

Report of the Board (continued)Statement of responsibilities of the Board

The Companies Act 1985 and the Housing Act 1996require the Board to prepare financial statements for eachfinancial year which give a true and fair view of the state ofaffairs of the Group and of the surplus of the Group for thatperiod. In preparing those financial statements the Boardhas:

selected suitable policies and applied them consistently;

made judgements and estimates that are reasonableand prudent;

followed applicable accounting standards, subject to anymaterial departures disclosed and explained in thefinancial statements; and

prepared the financial statements on a going concernbasis

The Board is responsible for keeping proper accountingrecords which disclose with reasonable accuracy at anytime the financial position of the Group and ensure that thefinancial statements comply with the Companies Act 1985,the Housing Act 1996 and the Accounting Requirements forRegistered Social Landlords General Determination 2000.It is also responsible for safeguarding the assets of theGroup and hence for taking reasonable steps for theprevention and detection of fraud and other irregularities.

Auditors

A resolution for the reappointment of KPMG LLP asauditors of the Group is to be proposed at the forthcomingAnnual General Meeting.

H.A. POTTERGroup Company Secretary

Information and financial reporting systems

Financial reporting procedures include detailed budgets forthe year ahead and forecasts for subsequent years. Theseare reviewed and approved by the Board. The Board alsoregularly review key performance indicators to assessprogress towards the achievement of key businessobjectives, targets and outcomes.

The internal control framework and the risk managementprocess are subject to regular review by Internal Audit whoare responsible for providing independent assurance to theBoard via its Group Audit and Risk ManagementCommittee. The committee considers internal control andrisk regularly during the year.

The Board has received the Group Chief Executive’sannual report, has conducted its annual review of theeffectiveness of the system of internal control and hastaken account of any changes needed to maintain theeffectiveness of the risk management control process.

The Board confirms that there is an ongoing process foridentifying, evaluating and managing significant risks facedby the Group. This process has been in place throughoutthe year under review, up to the date of the annual report,and is regularly reviewed by the Board.

In addition to the above the Group has implemented anumber of changes to its approach and day-to-daymanagement of risk and audit matters, applying currentbest practice to both areas of its work.

7

Report of the independentauditors, KPMG LLP, to themembers of East ThamesHousing Group Limited

We have audited the financial statements on pages 8 to 34.

This report is made solely to the Company’s members as abody, in accordance with Schedule 1, paragraph 16 and 18to the Housing Act 1996, and the Companies Act 1985. Ouraudit work has been undertaken so that we might state tothe Company’s members those matters we are required tostate to them in an auditor’s report and for no otherpurpose. To the fullest extent permitted by law, we do notaccept or assume responsibility to anyone other than theCompany and Company’s members as a body, for our auditwork, for this report, or for the opinions we have formed.

Respective responsibilities of the Board and Auditors

The Company’s Board is responsible for preparing theBoard’s report and, as described on page 6, the financialstatements in accordance with applicable United Kingdomlaw and accounting standards. Our responsibilities, asindependent auditors, are established in the United Kingdomby statute, the Auditing Practices Board, the HousingCorporation and by our profession’s ethical guidance.

We report to you our opinion as to whether the financialstatements give a true and fair view and are properlyprepared in accordance with the Companies Act 1985, theHousing Act 1996 and the Accounting Requirements forRegistered Social Landlords General Determination 2000.We also report to you, if in our opinion, a satisfactorysystem of control over transactions has not beenmaintained, if the Company has not kept proper accountingrecords, if we have not received all the information andexplanations we require for our audit, or if informationspecified by law regarding the directors’ remuneration andtransactions with the Company are not disclosed.

We read the other information accompanying the financialstatements and consider whether it is consistent with thosestatements. We consider the implications for our report ifwe become aware of any apparent misstatement ormaterial inconsistencies with the financial statements.

Basis of audit opinionWe conducted our audit in accordance with AuditingStandards issued by the Auditing Practices Board. An auditincludes examination, on a test basis, of evidence relevantto the amounts and disclosures in the financial statements.It also includes an assessment of the significant estimatesand judgements made by the Board in the preparation ofthe financial statements and of whether the accountingpolicies are appropriate to the Company’s circumstances,consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all theinformation and explanations which we considerednecessary in order to provide us with sufficient evidence togive reasonable assurance that the financial statementsare free from material misstatement, whether caused byfraud or other irregularity or error. In forming our opinionwe also evaluated the overall adequacy of the presentationof information in the financial statements.

Opinion

In our opinion the financial statements give a true and fairview of the state of affairs of the Company and the Groupas at 31 March 2004 and of their surplus for the year thenended and have been properly prepared in accordancewith the Companies Act 1985, the Housing Act 1996 andthe Accounting Requirements for Registered SocialLandlords General Determination 2000.

KPMG LLPChartered AccountantsRegistered Auditor1 Forest GateBrighton RoadCrawleyWest Sussex RH11 9PT

8

Consolidated balance sheet at31 March 2004

2004 2003Note £'000 £'000

(Restated)Tangible fixed assetsHousing properties at valuation 12 403,639 328,157Other fixed assets 13 8,514 5,806

412,153 333,963

InvestmentsCost of Homebuy 12 37,209 12,569Less: Social Housing Grant (37,209) (12,569)

- -

Current assetsInvestments 14 4,508 11,440Stock 15 7,418 14,309Debtors 16 9,090 6,968Cash at bank and in hand 2,275 3,193

23,291 35,910Creditors: amounts falling due within one year 18 (27,785) (18,184)Net current assets (4,494) 17,726

Total assets less current liabilities 407,659 351,689

Creditors: amounts falling due after more than one year 19 164,779 173,305

Provision for liabilities and charges 22 100 100

Capital and reservesShare capital 23 - -Revenue reserve 24 45,516 36,922Designated reserve 24 1,953 2,069Restricted reserve 24 2,912 3,240Consolidation reserve 24 263 263 Revaluation reserve 24 192,136 135,790

242,780 178,284407,659 351,689

The financial statements were approved by the Board on 8 July 2004 and signed on its behalf by:

Richard HenchleyCHAIRMAN

Charles VilliersTREASURER

Henry PotterGROUP COMPANY SECRETARY

Consolidated incomeand expenditure accountfor the year ended31 March 2004

2004 2003Note £'000 £'000

Turnover 2 66,700 55,521Operating costs 2 (56,145) (43,625)Operating surplus 10,555 11,896Surplus on property disposals 4 6,410 1,921Net interest payable and similar charges 8 (8,837) (9,332)Surplus on ordinary activities before taxation 8,128 4,485Tax on surplus on ordinary activities 9 - 159 Surplus for the year 24 8,128 4,644Transfer from revaluation reserve 24 25 2,336Transfer to restricted reserves 24 (1,036) (1,001)Transfer from designated reserves 24 116 -Transfer from restricted reserves 24 1,361 1,533Unallocated surplus 8,594 7,512Revenue reserves brought forward 36,922 29,410Revenue reserves carried forward 45,516 36,922

Consolidated Statement of total recognised surpluses 2004 2003and deficits for the year ended 31 March 2004 £'000 £'000Surplus for the year 8,128 4,644Unrealised surplus on revaluation of housing properties 12 55,932 36,352 Prior year adjustment (as per note 12) 43,552 - Total recognised surpluses for the year 107,612 40,996

Note of historical cost surpluses and deficits 2004 2003for the year ended 31 March 2004 £'000 £'000Surplus on ordinary activities before taxation 8,128 4,485 Realisation of property revaluation surpluses of previous years 25 2,336Historical cost surplus on ordinary activities before taxation 8,153 6,821Historical cost surplus for the year after taxation and gift aid 8,153 6,980

All turnover and operating surpluses are attributable to continuing operations.

9





10

Consolidated cash flowstatement for the yearended 31 March 2004

2004 2003Note £'000 £'000

Net cash flow from operating activities 27 27,028 14,383

Returns on investments and servicing of financeInterest received 538 294Interest paid (9,071) (10,888)Net cash outflow on servicing of finance (8,533) (10,594)

Capital expenditure and financial investmentsPurchase and construction of housing properties (45,263) (59,269)Purchase of other fixed assets (3,824) (1,144)Purchase of investments (26,819) (8,198)Social housing grant received 40,730 37,125Other capital grants received (224) 2,373 Proceeds of first tranche sales 7,300 8,986 Proceeds Homebuy 990 719Sales of housing properties 11,429 9,281Sales of other fixed assets 19 6 Sales of investments 8,713 4,787Cash outflow from investing activities (6,949) (5,334)

Cash inflow/(outflow) before financing 11,546 (1,545)

FinancingHousing loans received 6,379 7,371Housing loans repaid (18,387) (9,053)Cash outflow from financing 28 (12,008) (1,682)

Corporation Tax (150) (103)Gift aid (116) (15)Decrease in cash in the year 28 (728) (3,345)

11

Parent balance sheet at31 March 2004

2004 2003Note £'000 £'000

Tangible fixed assets 13 742 -

Current assets

Debtors 16 1,026 1,945Cash at bank and in hand 17 982 -

2,008 1,945Creditors: amounts falling due within one year 18 (367) (449)Net current assets 1,641 1,496

Total assets less current liabilities 2,383 1,496

Capital and reservesShare capital 23 - - Reserves 24 681 (239)Designated Reserves 24 1,702 1,735

2,383 1,496









Parent income andexpenditure accountfor the year ended31 March 2004

2004 2003Note £'000 £'000

Turnover 2 9,239 7,390Operating costs 2 (8,389) (7,855)Operating surplus/(deficit) 850 (465)Net interest receivable 8 70 38Surplus/(deficit) on ordinary activities 24 920 (427)Transfer to designated reserves 24 - -Unallocated surplus/(deficit) 920 (427)Revenue reserves brought forward (239) 188 Revenue reserves carried forward 681 (239)

Statement of total recognised surpluses and deficits 2004 2003for the year ended 31 March 2004 £'000 £'000

Surplus/(deficit) for the year 920 (427)Total recognised surpluses/(deficits) for the year 920 (427)

Note of historical cost surpluses and deficits 2004 2003for the year ended 31 March 2004 £'000 £'000Surplus/(deficit) on ordinary activities before taxation 920 (427)Historical cost surplus/(deficit) on ordinary activities before taxation 920 (427)Historical cost surplus/(deficit) for the year after taxation 920 (427)

12

Parent cash flowstatement for the yearended 31 March 2004

2004 2003Note £'000 £'000

Net cash inflow/(outflow) from operating activities 27 1,687 (1,853)

Returns on investments and servicing of financeInterest received 70 38Net cash inflow on investments and servicing of finance 70 38

Cash inflow/(outflow) before financing 1,757 (1,815)Purchase of fixed assets (742) -Gift aid (33) (15)

Increase/(decrease) in cash in the period 28 982 (1,830)

13

14

Notes to thefinancial statements31 March 2004

1. ACCOUNTING POLICIES

(a) Basis of accounting

The financial statements of the parent company and theGroup are prepared under the historical convention(as amended by the revaluation of the Group’s housingassets) in accordance with the Companies Act 1985, theHousing Act 1996 and comply with AccountingRequirements for Registered Social Landlords GeneralDetermination 2000. Applicable accounting standards andstatements of recommended practice have been followed.

Basis of consolidation

The Group financial statements consolidate the financialstatements of East Thames Group Limited and itsoperating subsidiaries East Thames Housing AssociationLimited, Boleyn & Forest Housing Society Limited,East Street Services Limited, formerly known as B&FCommercial Services Limited, East Thames Care Limitedand Network East Foyers.

(b) Turnover

Turnover represents rental and service charge incomefrom tenants, management fees, sales of propertiesdeveloped for other Registered Social Landlords andcertain revenue grants.

(c) Housing properties

Housing properties represent the Group’s investment inproperties for rent and properties subject to sharedownership leases.

Completed housing properties held for letting are stated atExisting Use Value for Social Housing (EUV-SH). Sharedownership properties are stated at Existing Use Value forSocial Housing (EUV-SH) less the Net Present Liability torepay Social Housing Grant (SHG). Housing propertiesunder construction are stated at cost less related SHG andother capital grants.

Cost comprises the cost of acquiring land and buildings,development costs, rehabilitation costs, attributable interestcharges incurred during the development period and thecapital element of expenditure incurred in respect of themajor repair programmes of stock modernisation andestate improvement.

Development and modernisation costs include thecapitalisation of the Group’s own directly related employeecosts from the direct labour force involved in thedevelopment process and directly attributable developmentmanagement costs and other direct costs. The cost ofshared ownership properties is stated net of proceeds offirst tranche sales. Land donated by public authorities isbrought into cost at market value at the time of donation.

(d) Depreciation of housing properties

Freehold land is not depreciated. Depreciation is chargedso as to write down the value of freehold housingproperties other than freehold land to their estimatedresidual value on a straight line basis over their remainingexpected useful economic lives as follows:

Houses 100 to 150 years

Low level flats 100 to 150 years

Blocks over four floors 80 years

These useful economic lives apply equally to theGroup’s rented, shared ownership and care stock ofhousing properties.

Properties held on long leases are depreciated over theirestimated useful economic lives or the life of the lease ifshorter. In the case of care properties the depreciationcalculated on the basis set out above is immaterial due tothe high residual values of the properties and is notrecorded. For all properties impairment reviews are carriedout on an annual basis in accordance with FRS 11.

15


1. ACCOUNTING POLICIES (continued)

(e) Social Housing Grant

Social Housing Grant (SHG) is payable by the HousingCorporation and is utilised to reduce the capital costs of ascheme to a value which may be supported by rentalincome. Where SHG is received in advance of aggregateexpenditure it is disclosed as a short-term creditor.

When the social housing grant is retained following thedisposal of property, it is shown under the disposalproceeds or recycled capital grant funds in creditors.SHG is repayable in certain circumstances. When SHGbecomes repayable it is included as a current liability untilit is repaid. The repayment of SHG is generallysubordinated to the repayment of housing loans, as agreedwith the Housing Corporation.

(f) Other grants

Other grants include grants from local authorities and otherorganisations, primarily the London DocklandsDevelopment Corporation. Capital grants are treated in thesame way as SHG and include amounts attributable toland donated by public authorities. Grants in respect ofrevenue expenditure are included in the income andexpenditure account in the same period as the expenditureto which they relate.

(g) Stock

Stock is valued at the lower of cost and net realisable value.

(h) Other tangible fixed assets

Service charge assets and other fixed assets, such asoffice buildings, are stated at cost less depreciation.Depreciation is provided evenly on the cost of servicecharge assets and other tangible fixed assets to write themdown to their estimated residual values over their expecteduseful lives on a straight line basis at the following rates:

Freehold offices 4%

Lifts 4%

Office furniture and improvements 14.3%

Service equipment 20%

Motor vehicles 25%

Computer equipment 33.3%

(i) Pensions

The Group participates in the Social Housing PensionScheme final salary pension scheme and retirementbenefits to Group employees are funded by contributionsfrom all participating employers and employees in thescheme. Payments are made to a fund operated by thePensions Trust, an independent trust providingsuperannuation benefits for employees of voluntaryorganisations. These payments are made in accordancewith periodic calculations by consulting actuaries and arebased on pensions costs applicable across the variousparticipating associations taken as a whole.

16


1 ACCOUNTING POLICIES (continued)

(j) Provision for furniture and equipment replacement

The Group has an obligation under various revenue grantagreements to replace furniture and equipment relating tocertain tenancies or repay grant received. The provision isbased on the Group’s liability to replace the furniture andequipment as and when necessary.

(k) Restricted and designated reserves for major repairs

The Group’s commitment to fund major repairs isrecognised by the transfer of accumulated surpluses torestricted and designated reserves. Annual contributionsare made to the reserves as follows:

1) Restricted Reserves: Schemes on which major repairsSHG is available - an amount equal to 90% of thereinvestment fund calculation for the year. Inaccordance with the Housing Corporation regulations,transfers are made out of the restricted reserve in linewith qualifying modernisation expenditure on existingstock purchased prior to 1988.

2) Designated Reserves: Schemes on which major repairsSHG is not available - an amount based on theexpected future liabilities.

(l) Agency managed hostels

The Group has brought into its financial statements onlyincome and expenditure under its direct control in respectof agency managed hostels.

(m) Taxation

East Thames Group Limited is a registered charity and isregistered under the 1985 Companies Act and is notgenerally subject to corporation tax.

(n) Homebuy

A subsidiary of the group, Boleyn & Forest HousingSociety Limited participates in the Homebuy scheme.Purchasers are given a grant of 25% of the value of theirhome by the Society which is in turn reimbursed by theHousing Corporation by way of social housing grant. Norent is payable to the Society. The Society receives anallowance for handling the transaction, paid by way offurther grant.

(o) Starter Home Initiative

A subsidiary of the group, Boleyn & Forest HousingSociety Limited participates in the Starter Home InitiativeScheme. This is funded through SHG. The value of thegrants received and paid out is shown on the balancesheet. The Society also receives an allowance for handlingthe transaction, paid by way of a further grant.

17


2 PARTICULARS OF TURNOVER, COST OF SALES, OPERATING COSTS AND OPERATING SURPLUS

2004 2003Operating Operating

Operating surplus/ surplus/GROUP Turnover costs (deficit) (deficit)

£'000 £'000 £'000 £'000Income and expenditure from lettingsHousing accommodation 29,820 17,444 12,376 13,825Special needs accommodation 13,324 10,705 2,619 2,116 Support charges - Fixed contract 1,184 1,184 - - Temporary social housing 15,048 14,099 949 724 Shared ownership accommodation 4,382 2,861 1,521 1,697

63,758 46,293 17,465 18,362

Other income and expenditureRegeneration and development services 206 711 (505) (455)Other 2,736 9,141 (6,405) (6,011)

2,942 9,852 (6,910) (6,466)

Total 66,700 56,145 10,555 11,896

2004 2003Operating Operating

Operating surplus/ surplus/PARENT Turnover costs (deficit) (deficit)

£'000 £'000 £'000 £'000

Other income and expenditureRegeneration and development services 206 711 (505) (455)Group recharge 8,751 7,678 1,073 (187)Other 282 - 282 177

Total 9,239 8,389 850 (465)

18


3 PARTICULARS OF INCOME AND EXPENDITURE FROM LETTINGS

TemporaryGROUP Housing Supported Residential social Shared 2004 2003

accommodation housing care homes housing ownership £'000 £'000Income from lettingsRent receivable net of identifiable service charges 26,402 1,840 326 14,386 2,573 45,527 36,910

Service charges receivable 1,460 4,537 145 - 830 6,972 7,920Gross rents receivable 27,862 6,377 471 14,386 3,403 52,499 44,830

Less: Rent losses from voids (444) (246) (75) (555) - (1,320) (1,059)Net rents receivable 27,418 6,131 396 13,831 3,403 51,179 43,771

Revenue grants from localauthorities and other agencies 2,007 1,421 4,654 - - 8,082 6,943

Revenue grants from theHousing Corporation - 1,046 138 - - 1,184 1,713

Other grants - - - - - - -Other income 395 722 - 1,217 979 3,313 1,123Total income from lettings 29,820 9,320 5,188 15,048 4,382 63,758 53,550

Expenditure on letting activitiesServices 1,376 1,080 393 - 234 3,083 2,654Management 6,732 4,149 3,766 13,256 244 28,147 20,317Overhead Allocation 273 800 720 - - 1,793 1,126Routine maintenance 4,696 665 150 612 369 6,492 5,039Planned maintenance 2,393 - - - - 2,393 1,882Rent losses from bad debts 373 42 (5) 231 - 641 1,420

Revenue element of majorrepairs expenditure 1,078 - - - - 1,078 1,165

Housing properties depreciation 523 - - - - 523 660Other costs - 9 120 - 2,014 2,143 925Total expenditure on lettings 17,444 6,745 5,144 14,099 2,861 46,293 35,188

Operating surplus on letting activities 12,376 2,575 44 949 1,521 17,465 18,362

Care and Supported Housing

5 UNITS OF ACCOMMODATION IN MANAGEMENT

Hostels/Managed Supported Managed Self- shared Temporary

by East Managed housing by East Managed contained housing social SharedTotal Thames by others stock Thames by others units bedspaces housing ownership

1 April 2003 10,987 7,056 410 304 171 418 105 38 1,049 1,436

31 March 2004 11,451 7,081 432 227 489 119 95 90 1,497 1,421


4 SURPLUS ON PROPERTY SALES

GROUP Sales Cost 2004 2003proceeds of sales Surplus Surplus

£'000 £'000 £'000 £'000

Sales of older properties 11,429 5,272 6,157 1,673Homebuy 987 734 253 207Sales of properties developed for sale 7,300 7,300 - 41

19,716 13,306 6,410 1,921

Self contained rental stockGROUPHostels and

shared housing Managed for others

19


7 OPERATING SURPLUSGroup Group Parent Parent

2004 2003 2004 2003This is arrived at after charging: £'000 £'000 £'000 £'000

Depreciation of housing properties 523 660 - -Depreciation of tangible fixed assets 657 996 - -Operating leases land and buildings 12,258 5,875 - -Auditors' remuneration

- for audit services 59 74 12 24- for non audit services 8 74 - 21

6 ACCOMMODATION MANAGED BY OTHER BODIES IN RECEIPTOF SUPPORTED HOUSING MANAGEMENT GRANT

GROUPAmount ofSupported

No. of No. of HousingUnits Units Management

31.3.04 31.3.03 GrantName of Body £'000Ashiana - 7 21 Outlook Care Limited - 63 180 New Testament Assembly Community Project - 4 10 Barnardos - 6 20 Newham Asian Women's Project - 14 65 Barking and Dagenham Women's Aid - 16 40 Network East Foyers (subsidiary see note 14) - 366 219 Shortstop - - - MIND in Waltham Forest - 13 39 Norwood Ravenswood - 7 3 Homeless Young People's Project - 43 124 Single Homeless Project - 40 117 Redbridge Community Housing Ltd - 60 167 NACRO - 8 12 Tower Hamlets Consortium - 6 17 Richmond Fellowship - 4 15 Hibiscus Housing Project - 20 28 Waltham Forest Specialist Housing Consortium - 41 123 Young People's Housing Project - 19 56 Total - 737 1,256

As Supported Housing Management Grants ceased on 31 March 2003, no income is shown this year.

20

8 NET INTEREST PAYABLE AND SIMILAR CHARGES

Group Group Parent Parent2004 2003 2004 2003£'000 £'000 £'000 £'000

Interest receivable 203 580 70 38Interest payable on loans and leases:

- repayable wholly within five years - - - - - repayable in more than five years (9,091) (10,208) - -

(8,888) (9,628) 70 38

Interest payable capitalised on housingproperties under construction 150 400 - -

Interest receivable transferred to thecapital grant recycling fund (99) (104) - -

(8,837) (9,332) 70 38

9 TAXATION ON SURPLUS ON ORDINARY ACTIVITIES


Corporation tax on income - - - -

Corporation tax adjustment in respectof year ended 31 March 2002 - (159) - -

- (159) - -

21


10 EMPLOYEES

Group Group Parent Parent2004 2003 2004 2003

No. No. No. No.

Average number of employeesAdministration 415 365 128 122Care Staff 275 262 - -Wardens, caretakers, cleaners 7 11 - -Direct labour 49 44 - -

746 682 128 122

Group Group Parent Parent2004 2003 2004 2003

No. No. No. No.

Number of employees expressed in full time equivalentsAdministration 404 324 124 113Care Staff 263 251 - -Wardens, caretakers, cleaners 6 7 - -Direct labour 49 44 - -

722 626 124 113


Staff costsWages and salaries 16,758 14,305 3,536 2,958Social Security costs 1,510 1,164 336 258Other pension costs 819 715 264 239

19,087 16,184 4,136 3,455


The Group participates in the Social Housing PensionScheme (SHPS). SHPS is a multi-employer defined benefitscheme. The Scheme is funded and is contracted out ofthe state scheme.

SHPS is a multi-employer scheme, where the share ofassets and liabilities applicable to each employer is notidentified, the Group has accounted for its pension costson a defined contribution basis as permitted by FRS 17.

22


10 EMPLOYEES (continued)

The last formal valuation of the Scheme was performed at 30September 2002 by a professionally qualified actuary usingthe "projected unit credit" method. The market value of theScheme's assets at the last valuation date was £650 million.

The Group paid contributions at the rate of 10.6% duringthe accounting period. Member contributions vary between2.0% and 5.0% depending on their age at the date ofjoining the Scheme.

It is not possible to identify the share of underlying assetsand liabilities belonging to individual participating employers.

Financial assumptions

The financial assumptions underlying the valuation wereas follows:

% per annum- Rate of return on future contributions 6.6 - Rate of return on accumulated assets 5.4- Rate of salary increases 4.5- Rate of pension increases 2.5- Rate of price inflation 2.5

The accumulated assets of the Scheme were assumed toearn the same return as if they had been invested in aportfolio comprising 100% UK equities for non-pensionerliabilities and 25% UK equities/75% gilts for pensionerliabilities.

The valuation revealed a shortfall of assets compared withthe value of liabilities of some £117 million (equivalent to apast service funding level of 85%). The long term jointcontribution rate required from employers and members tomeet the cost of future benefit accrual was assessed as15% of pensionable salaries.

Following consideration of the results of actuarial valuation,with effect from 1 April 2004 most employers (includingEast Thames Housing Group) are required to contribute atthe standard rate of 11.7% of pensionable salaries.Member contributions will also be increased by 1.1% from2.0%-5.0% to 3.1%-6.1% of pensionable salariesdepending on age. Employers that participate in theScheme on a non-contributory basis pay a jointcontribution rate (i.e. a combined employer and employeerate). This rate will increase from 15.0% to 17.3% ofpensionable salaries with effect from 1 April 2004.Employers that have closed the Scheme to new membersare required to pay an additional employer contributionloading of 3% to reflect the higher costs of a closedarrangement. A small number of employers are required tocontribute at a different rate to the standard 11.7% toreflect the amortisation of a surplus or deficit on thetransfer of assets and past service liabilities from anotherpension scheme into the SHPS.

The next valuation is due at 30 September 2005.

23

Completed housing properties held for letting are stated atExisting Use Value for Social Housing (EUV-SH) and sharedownership properties are stated at EUV-SH less the NetPresent Liability to repay Social Housing Grant. Housingproperties have been valued by professional valuers, FPDSavills, Chartered Surveyors. The last full valuation ofcompleted housing properties was prepared as at 31 March2004 in accordance with the Appraisal and Valuation Manualof the Royal Institution of Chartered Surveyors. This hasresulted in a positive valuation adjustment as follows:

12 TANGIBLE FIXED ASSETS - HOUSING PROPERTIES


Completed properties at valuation £'000East Thames Housing Group 320,324 Boleyn & Forest Housing Society 58,698

Housing properties under construction at costEast Thames Housing Group 1,890 Boleyn & Forest Housing Society 22,727

Consolidated 403,639

Details of these properties at valuation are set out below

24

The Chief Executive is an ordinary member of the pensionscheme and has no enhanced or special terms and doesnot have an individual pension arrangement to whichEast Thames Housing Group or any of its subsidiariesmakes a contribution.

Expenses paid during the year to members of the Boardamount to £24,786 (2003: £18,898). No payments ofbenefits other than those permitted, were made to thepersons referred to in Part 1, Schedule 1 of the HousingAct 1996.

The Directors of the parent company as defined under theAccounting Requirements for Registered Social LandlordsGeneral Determination 2000 are its Management Board,the Chief Executive and any other person who is amember of the senior management team.

11 DIRECTORS, MEMBERS AND SENIOR STAFF EMOLUMENTS

Parent ParentBasic Benefits Pension Total Totalsalary in kind contributions 2004 2003

£ £ £ £ £

The aggregate amount of emolumentspaid to the directors was 476,832 1,196 41,088 519,116 485,728

Emoluments of the Chief Executive, who was also the highest paid director,excluding pension contributions. 101,885 1,196 - 103,081 99,470

12 TANGIBLE FIXED ASSETS - HOUSING PROPERTIES (continued)

Shared SharedGROUP Housing Housing ownership ownership

properties properties properties propertiesheld for under held for under

letting construction letting construction Total£'000 £'000 £'000 £'000 £'000

ValuationAt 1 April 2003 as previously reported 218,759 1,055 50,763 14,549 285,126 Prior year adjustment 43,552 - - - 43,552 At 1 April 2003 as restated 262,311 1,055 50,763 14,549 328,678 Schemes completed in year 4,661 (4,661) 7,799 (7,799) - Additions and Major repairs capitalisednet of SHG and other grants 1,537 1,204 2,890 19,181 24,812 Write back of accumulated depreciation (594) - - - (594)Revaluation adjustment 52,566 - 3,366 - 55,932 Interest capitalised - 152 - - 152 Own direct labour costs capitalised 229 11 - - 240 Own development management costs capitalised 150 1,345 - - 1,495 Disposals (277) - (5,860) (3,204) (9,341)Transfer to stock (519) 2,784 - - 2,265 At 31 March 2004 320,064 1,890 58,958 22,727 403,639

Valuation as at 31 March 2004 is represented by:Gross cost 507,699 26,603 63,982 37,763 636,047 Social Housing Grant (295,737) (24,235) (37,969) (15,036) (372,977)Other grants (51,089) (478) - - (51,567)Revaluation surplus 159,191 - 32,945 - 192,136

320,064 1,890 58,958 22,727 403,639


2004 2003Housing properties comprise: £'000 £'000Freehold land and buildings 403,176 284,141Long leasehold land and buildings 463 463

403,639 284,604

Housing properties brought forward at 1 April 2003 havebeen restated to include certain housing properties whichwere inadvertently omitted from the valuation included inthe previous year's accounts. A corresponding adjustment

has been made to the revaluation reserve as set out innote 24. No adjustment is required to the depreciationcharge in the prior year's income and expenditure accounton the grounds of immateriality.

25

12 TANGIBLE FIXED ASSETS - HOUSING PROPERTIES (continued)

2004 2003£'000 £'000

Investment in Homebuy:Long term investment in properties (Homebuy) 37,931 13,022 Less: Grants received (37,931) (13,022)Grants recycled 722 453Decrease in investment in properties (722) (453)

- -

13 TANGIBLE FIXED ASSETS - OTHER

GROUP Plant,equipment

Freehold and Motoroffice furniture vehicles Total£'000 £'000 £'000 £'000

CostAt 1 April 2003 6,808 5,419 358 12,585 Additions 2,676 1,148 - 3,824 Disposals (8) (1,017) (85) (1,110)At 31 March 2004 9,476 5,550 273 15,299

DepreciationAt 1 April 2003 (2,463) (4,071) (245) (6,779)Charged in year (266) (331) (61) (658)Disposals 6 568 78 652 At 31 March 2004 (2,723) (3,834) (228) (6,785)

Net book valueAt 31 March 2004 6,753 1,716 45 8,514 At 31 March 2003 4,345 1,348 113 5,806

PARENT

CostAt 1 April 2003 - - - - Additions - 742 - 742 Disposals - - - - At 31 March 2004 - 742 - 742

Net book valueAt 31 March 2004 - 742 - 742 At 31 March 2003 - - - -


26

At 31 March 2004 (31 March 2003: £11,440,000) EastThames Housing Group Limited held the followinginvestments:

£’000Passmore Urban Renewal Limited £450Fixed term Treasury Deposit £4,058TOTAL £4,508

East Thames Housing Association Limited, together withthree other registered social landlords and the LondonBorough of Newham has invested in Passmore UrbanRenewal Limited. This Industrial and Provident Society hasbeen set up for the promotion of urban regeneration in theLondon Borough of Newham. At 31 March 2004,East Thames Housing Association Limited had invested£450,000 in this project.

The parent company owns one £1 nominal share in Boleyn& Forest Housing Society Limited, whose main activity isdeveloping and managing shared ownership schemes. Theparent company has entered into trust arrangements withthe members of Boleyn & Forest Housing Society Limitedwhich require it to classify it as a subsidiary. Boleyn &Forest Housing Society Limited is a Registered SocialLandlord with charitable status, registered withThe Housing Corporation.

The parent company have a 100% shareholding inEast Street Limited, formerly known as B&F CommercialServices Limited, whose main activity is to undertakeproperty management services for other Associations andto deal with other non charitable housing activities.

Notes to thefinancial statements31 March 2004 The parent company owns one £1 nominal share in East

Thames Care Limited whose main activity is providing careand housing management for supported housing andresidential care homes. The parent company has enteredinto trust arrangements with the members of East ThamesCare Limited which require it to classify it as a subsidiary.

The parent company has entered into trust arrangementswith the members of Network East Foyers which require itto classify it as a subsidiary. The principal activity ofNetwork East Foyers is the provision of housingmanagement services at the Stratford (Focus E15),Harlow, Redbridge, Drapers Foyers and First StepAssessment Centre and related training and informationservices to young people in east London and Harlow.

East Thames Housing Association Limited has entered intoa lease and leaseback arrangement for the Stratford (FocusE15) Foyer with Network East Foyers a fellow subsidiary fora period of 25 years. The net margin passing to NetworkEast Foyers amounts to £5,000 per annum.

27

14 INVESTMENTS AND RELATED PARTY TRANSACTIONS

15 STOCK AND WORK IN PROGRESSGroup Group

2004 2003£'000 £'000

Completed properties for sale to other RegisteredSocial Landlords 7,968 11,663Properties for sale to other Registered SocialLandlords under construction (550) 2,646

7,418 14,309

16 DEBTORSGroup Group Parent Parent

2004 2003 2004 2003£'000 £'000 £'000 £'000

Due within one year:Arrears of rent and service charges 3,981 5,159 - -Less: Provision for bad and doubtful debts (2,291) (2,220) - -

1,690 2,939 - -

Other debtors 5,202 2,572 160 103Prepayments and accrued income 2,198 1,457 - 190Amounts due from group companies (net of provisions) - - 866 1,652

9,090 6,968 1,026 1,945

17 CASH AT BANK AND IN HAND


Included in cash at bank and in hand are amounts totallingGroup: £200,000 (Parent Company: £ Nil) 2003 Group:£1,147,662 (Parent Company: £ Nil) which are subject torestrictions and are not freely available for general use.

28

18 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR


Loans (note 20) 1,590 1,817 - -Rent and service charges received in advance 1,121 1,000 - -Corporation Tax - 150 - -Other taxation and social security 478 270 122 -Bank overdraft - 190 - -Accruals and deferred income 6,894 4,491 197 443Other creditors 16,331 8,724 48 6Capital Grant Recycling Fund 916 542 - -Disposal Proceeds Fund 455 1,000 - -

27,785 18,184 367 449

Group Group2004 2003

Payments to creditorsAverage number of days between receipt and payment of purchase invoices 13 13

19 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group Group2004 2003£'000 £'000

Loans (note 20) 153,732 165,513Deferred income 1,402 1,456Capital Grant Recycling Fund 7,142 4,182Disposal Proceeds Fund 1,393 1,075Other 1,110 1,079

164,779 173,305


The deferred income represents the premium on theHACO loan, net of issue costs. This premium will beamortised over the period of the loan.

29

20 LOAN ANALYSIS


Due within one year:Bank loans 1,246 1,327 - -Orchardbrook Limited (originallyThe Housing Corporation) loans 22 181 - -Other loans 322 309 - -

1,590 1,817 - -


Due after more than one year:Bank loans 100,397 111,458 - -Orchardbrook Limited (originallyThe Housing Corporation) loans 5,864 5,812 - -HACO 25,000 25,000 - -Other loans 22,914 23,515 - -Capitalised costs (443) (272) - -

153,732 165,513 - -


Loans are repayable as follows:Within one year 1,590 1,817 - -Between one and two years 1,553 5,544 - -Between two and five years 36,651 11,047 - -After more than five years 115,971 149,194 - -

155,765 167,602 - -


Loans and finance leases to the value of Group:£155 million (Parent Company: £ Nil) are secured by acombination of fixed charges and variable charges onindividual properties.

The loans from Orchardbrook Limited are repaid in half-yearly instalments over the estimated life of the scheme onwhich the loan is secured, at fixed rates of interest rangingfrom 9.50% to 10.625%. The final instalments are due forrepayment in the period 2005 to 2037.

The final instalments on bank, HACO and other loans aredue for repayment in the period 2006 to 2029.

Out of the total of loans and finance leases of Group:£155 million (Parent Company: £ Nil) interest is payable atfixed rates varying from 5.05% to 16.5% on Group:£110 million (Parent Company: £ Nil) and at rates linked toLIBOR on the remaining Group: £45 million (ParentCompany: £ Nil).

30

The shares provide members with the right to vote at general meeting, but do notprovide any rights to dividends or distributions on winding up.

21 ANNUAL OBLIGATIONS UNDER OPERATING LEASES

Group Group2004 2003£'000 £'000

Operating leases on land and buildings which expire:Within one year 643 771In the second to fifth years inclusive 10,424 8,236Over five years 1,869 813

22 PROVISION FOR LIABILITIES AND CHARGES

Group Groupdilapidation

repair Total2004 2003£'000 £'000

At 1 April 2003 100 100Provided during the year - - Utilised during the year - -At 31 March 2004 100 100

23 SHARE CAPITAL2004 2003

£ £Shares of £1 each issued and fully paidAt 1 April 2003 44 46Shares issued during the year 5 -Shares surrendered during the year - (2)At 31 March 2004 49 44

AuthorisedShares of £1 each 92 92


31

24 RESERVES

GROUP Revaluation Restricted Designated Consolidated Revenue Total£'000 £'000 £'000 £'000 £'000 £'000

At 1 April 2003 92,238 3,237 2,069 263 36,922 134,729 Prior Year Adjustment 43,552 - - - - 43,552 As restated 135,790 3,237 2,069 263 36,922 178,281 Surplus for the year - - - - 8,128 8,128 Deficit after property revaluation 56,371 - - - - 56,371 Transfers - 1,036 - - 1,502 2,538 Utilisations (25) (1,361) (116) - (1,036) (2,538)

At 31 March 2004 192,136 2,912 1,953 263 45,516 242,780

PARENT Designated Revenue Total£'000 £'000 £'000

At 1 April 2003 1,735 (239) 1,496 Surplus for the year - 920 920 Transfers - - - Utilisations (33) - (33)

At 31 March 2004 1,702 681 2,383

Group Group2004 2003£'000 £'000

Restricted reserves comprise:Donations 200 201Reinvestment fund (note 25) 2,712 3,039

2,912 3,240


Designated reserves comprise:Major repairs new funded schemes 218 218 - -Grant from Boleyn & Forest Housing Society Limited 1,735 1,735 - 1,735Cyclical repairs and maintenance - 116 - -

1,953 2,069 - 1,735


The Group plans its financial affairs to ensure that eachyear revenue income exceeds revenue expenditure. Thispolicy ensures that the Group has a margin of safety tomanage unexpected expenditure or shortfalls in income.The annual surpluses ensure that East Thames HousingGroup is able to meet its commitment to providers of

private finance and continue to provide social housing.Unlike commercial organisations the Group's rules preventthe distribution of reserves. Instead these are applied tofurthering our aims and objectives. At 31 March 2004 theGroup's reserves were all used in financing investments insocial housing.32

25 REINVESTMENT FUND

The surplus rental income calculated in the manner determined Group and Group andunder Section 55(3) of the Housing Act 1988 amounted to: Parent Parent

2004 2003£'000 £'000

At 1 April 2003 3,037 3,194Contributions for the year 1,036 1,001 Utilised during the year (1,361) (1,158)

At 31 March 2004 2,712 3,037

26 FINANCIAL COMMITMENTSGroup Group

2004 2003£'000 £'000

Capital commitmentsExpenditure contracted for but not providedin the accounts 93,455 58,338

Expenditure authorised by the Board butnot contracted for 52,100 42,925

145,555 101,263


33

27 RECONCILIATION OF OPERATING SURPLUS TO OPERATING CASH FLOWSGroup Group Parent Parent

2004 2003 2004 2003£'000 £'000 £'000 £'000

Operating surplus/(deficit) before taxation 16,966 13,817 850 (465)Depreciation of fixed assets 1,180 1,747 - -Deficit on sale of other fixed assets 442 53 - -Surplus on sale of housing properties (6,410) (1,921) - -Net decrease in provisions (54) (146) - -

12,124 13,550 850 (465)

Movement in Working CapitalDecrease/(increase) in stock 6,891 (2,560) - -(Increase)/decrease in debtors (2,457) (1,437) 919 3,638Increase/(decrease) in creditors 10,470 4,830 (82) (5,026)Net cash inflow from operating activities 27,028 14,383 1,687 (1,853)

28 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBTGroup Group Parent Parent

2004 2003 2004 2003£'000 £'000 £'000 £'000

(Decrease)/increase in cash in the period (728) (3,345) 982 (1,830)Cash inflow from increase in debt and lease financing 12,008 1,682 - -

Change in net debt resulting from cash flows 11,280 (1,663) 982 (1,830)

Net debt at the start of the period (164,327) (162,664) - 1,830Net debt at the end of the period (153,047) (164,327) 982 -

29 ANALYSIS OF NET DEBTGroup Group Parent Parent

2004 2003 2004 2003£'000 £'000 £'000 £'000

Cash at bank and in hand 2,275 3,193 982 -Bank overdraft - (190) - -Loans due within one year (1,590) (1,817) - -Loans due after more than one year (153,732) (165,513) - -Finance leases due within one year - - - -

(153,047) (164,327) 982 -


34

MISSION, AIMS AND VALUESOur mission To make a positive and lasting contribution

to the neighbourhoods in which we work.

Our key aims1 Providing high-quality homes and

services that meet the needs ofour customers.

2 Ensuring that our customers can influence our services.

3 Influencing local, regional and national thinking, policies and strategies.

4 Developing well informed, committedand enthusiastic staff.

5 Actively using our financial and organisational strength.

We will be customer focused

responding to what our customers say

providing excellent and reliable services

enabling customer choice

We will be ambitious

creating new approaches toservice delivery

producing excellent outcomes

striving for excellence in everything we do

We will be professional

being straightforward in everything we do

adopting a flexible approach todelivering services

demonstrating a respectful approach to our customers

being open, reliable and consistent

We will be leaders

empowering our staff to act responsibly

showing creativity in service provision

inspiring those who work with us

campaigning on key issues

Our values

35

Documents

Group Accounts 2004