Insights by Newport City Homes
Colleagues

Finance

Being financially strong enables us to empower our colleagues to do more. We are in a strong financial position, with resources in place to find our growth ambition. We also recognize that we have significant opportunity to further improve our financial position, to improve our efficiency and to increase our operating margin. This will enable us to further invest in new homes and enhanced services for our customers and communities.

High inflation could result in the Welsh Government implement a rent increase below CPI for 2023/24.

The operating surplus/deficit generated as a percentage of the turnover

Operating Margin (%)

Earnings (surplus) before interest, tax, depreciation, amortisation and after major repairs investment as a percentage of interest and financing costs payable in period

EBITDA MRI (%)

Borrowing less cash held

Net debt per unit (£)

Risk & Opportunity

Risk assessment
03
Prob
03
Imp
06
Score
Risk owner
Deputy Director
Finance & Procurement
Key concerns
  • Rent settlement lower than planned.
  • High CPI in 2022 will lead to rent settlement below CPI+1%
Key controls
  • Control: Baseline business plan will include “prudent assumption on rent increase and stress test all adverse assumptions
  • Mitigations in place to manage a lower rent settlement