Financial Statements 7
28.2 Analysis of changes in net debt
At 31 March 2023 £’000
Non cash movement £’000
At 31 March 2024 £’000
Cash flow £’000
Cash at bank and in hand including overnight deposits Other short term deposits and investments
34,260
21,570 (119) 1,092 (69,743)
– –
55,830
119
–
Debt due within one year Debt due after one year Finance lease obligations
(1,092)
(17,231) 15,905
(17,231) (601,389) (238,965) (801,755)
(547,551) (240,718) (754,982)
1,753
–
Net debt
(45,447)
(1,326)
29. Capital commitments - Group and Association
2024 £’000
2023 £’000
Capital expenditure that has been contracted for but has not been provided for in the financial statements Capital expenditure that has been authorised by the Board but has not yet been contracted for
147,476 375,708 523,184
33,110 459,512 492,622
30. Contingent assets and liabilities - Group and Association Anchor is preparing for a pensioner buy-in as part of a plan to manage the future liabilities of the ATFSS. During due diligence, a query has arisen in respect of a change to the benefits specification of the scheme between 1988 and 1995. The scheme Trustee’s legal adviser has questioned the changes to the indexation of pension increases during this period. The Trustee has carried out a review into all the schemes under its administration and concluded that the uncertainty is widespread among the majority of schemes it administers. The Trustee intends to seek a High Court review of its administration practices, which may take up to a further two years to conclude. The estimated impact on Anchor if these pension changes are ruled not to have been valid is £36.4m. As part of its review the Trustee has identified a further potentially significant item on which it intends to seek a High Court ruling, relating to the inflation index applied to benefits earned before December 2003. Prior to 2011, pre-2003 benefits were inflated in line with RPI capped at 5% but in 2011 the Trustee changed its approach to apply increases in line with CPI. The Trustee is seeking a ruling on whether the pension increases should have continued to be indexed against RPI. The estimated impact on Anchor if the change is ruled not to have been valid is £8.7m. A provision cannot be recognised at this time as for either of the above as neither the amount nor the timing is known. Issues with damp ingress have been identified at one of the Group’s development sites. Investigations are underway to establish the cause and extent of these issues and any works necessary to remediate them. These investigations are yet to be completed and at the time of the signing of the financial statements a reasonable estimate of the costs of any remedial works required was not available. 29 properties have been sold at the affected development and the Group has made an open offer to customers to repurchase the properties. As at 31 March 2024, one property had been repurchased for £0.5m and three others are in the process of being bought back for a total consideration of £2.1m. This liability is included within provisions in note 20. The offer remains open and if the remaining 25 customers were to take up the offer then the total additional consideration would be £17.6m. The Group and Association had no other contingent assets or liabilities at 31 March 2024 (2023: same).
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