2 Strategic Report including Operating and Financial Review
CAPITAL INVESTMENT AND EXPENDITURE ON MAJOR WORKS
Retirement housing to let
Properties under
Other fixed assets £m
Residential
2024 Total £m
2023 Total £m
Note
care homes construction
£m
£m
£m
Capital expenditure on new properties Capital expenditure on existing properties
12.1 12.1
2.8
46.9
74.5
–
124.2
234.2
35.7
8.0
–
1.7
45.4
47.1
Financial position at year end A summary of Anchor’s statement of financial position over the past five years is set out below. YEAR ENDING 31 MARCH 2024 2023 2022 2021
2020 £m
£m
£m
£m
£m
Goodwill
30.5
39.0
–
–
–
Housing properties at cost less depreciation Other tangible fixed assets
1,490.1
1,387.6
1,210.7
1,201.3
1,219.9
35.5
26.2
25.2
26.1
26.8
Investments
0.2
0.7
0.8
2.6
5.6
Net current assets Total assets less current liabilities Total net assets
75.7
127.1
154.6
120.6
160.1
1,631.9
1,580.5
1,391.3
1,350.6
1,412.4
592.3
592.0
571.9
542.0
555.7
Investment in new developments was supported by £52.8m (2023: £6.1m) of grant funding from Homes England and the Greater London Authority. A further £2.2m (2023: £0.9m) of grants from the recycled capital grant fund were used to support development expenditure. Grants are held in deferred income until a development reaches completion at which point they are added to deferred capital grants and amortised over the useful economic life of the building to which they relate. Cash and short-term deposits increased to £55.8m (2023: £34.4m) as the cash generated by the business, including property sales, exceeded investment in new developments and existing properties, as well as the acquisition of two new care homes. As at 31 March 2024, there was undrawn borrowing capacity of £144.6m across total facilities of £764.0m (2023: £185.6m undrawn facilities, £735.4m total facilities).
Housing properties at cost include two care homes acquired during the year on a freehold turnkey basis. The acquisition of Halcyon in November 2022 resulted in the recognition of a goodwill asset of £42.5m. This is being amortised over five years and has a current net book value of £30.5m (2023: £39.0m). Within net current assets, Anchor’s properties for sale totaled £171.5m (2023: £192.7m). This is made up of 451 properties ready for sale (214 for market sale and 237 shared ownership) with a value of £101.5m, and a further £70.0m of work in progress. This compares with 107 properties with a value of £26.4m and work in progress of £166.3m in the prior year. An impairment charge of £9.6m was made at a development where the principal contractor went into liquidation resulting in higher cost to complete and costs for remedial works that would otherwise have been recoverable.
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