The organisation’s main area of activity continues to be residential care, with income here accounting for 70% of turnover from social housing lettings.
Residential care occupancy for the year was 74.0%. This overall rate includes a rate of 55.8% at the organisation’s Barnes Lodge Care Home, with the third floor, of 34 beds, having remained empty over the last two months of the year, in anticipation of the introduction of nursing care. Excluding Barnes Lodge, residential care occupancy for the year was 86.3%, with this a fall from the equivalent figure of 92.8% seen for the previous year, and largely attributable to a drop in occupancy across all homes in the first six months of the year. Average occupancy rates seen in the last quarter of the year had increased however, with an average rate here of 89.1%, increasing to 91.6% for the quarter ended December 2019.
A total of 57 new, permanent residential care admissions were made during the year with this figure significantly less than the total of 109 such admissions made during the previous year. The majority of this reduction, 41 admissions, was due to Barnes Lodge with the previous year having reflected the home opening up the upper two floors. The number of self-funding admissions relative to those funded by a local authority has also fallen to 74%, down from the figure of 85% seen in the previous year, with this again due to Barnes Lodge.
In contrast a further 150 admissions were made during the year for respite care, with 54 at Barnes Lodge, reflecting a significant increase on the 87 respite admissions which were seen during the previous year, with 43 of these at Barnes Lodge. The majority of respite admissions were for self-funding clients, with only six funded by a local authority. As at the end of September 2019 5.7% (15 beds) of all available beds were being used for respite care, with four of these at Barnes Lodge. This is a slight increase from the position at the start of the year in October 2018 when a total of 12 beds, 4.5% of all, were being used for respite care with six of these at Barnes Lodge.
The organisation’s occupancy rate for its supported housing schemes was 83.6% with this the same as the rate seen in the previous year. Excluding the four schemes within the London Borough of Bromley, which have now closed, supported housing occupancy across the remaining three schemes was 93.9%.
Occupancy in respect of the organisation’s extra care housing schemes has remained high throughout the year, with an overall rate across all three schemes of 98.2%.
The financial statements show a deficit for the year of £434,232 before any transfers from reserves. Included in this figure however is a £290,611 loss on the disposal of fixed assets with this in recognition of the demolition of the organisation’s former residential care home in Kemsing, as the site has been cleared to allow for its redevelopment as a new extra care housing scheme.
The financial statements also include an impairment charge of £221,957 made in recognition of four former supported housing properties that the board of trustees had approved for disposal as at the end of September 2019. Two of these were being held vacant with contracts having been exchanged in respect of their sale, whilst the other two were still operational, although subject to a closure programme. The charge made reflects the difference between the carrying value of these four properties and the anticipated net realisable value from their sale. All properties have now been sold.
The operating surplus for the year is £395,202 a significant improvement on the operating surplus of £13,385 for the previous year. Within the figure however is a surplus of £945,382 (2018: £555,022) in respect of the sale of our Older Persons Shared Ownership (OPSO) properties at our Rosewell House Extra Care Housing Scheme. The underlying operating deficit was £523,770 with this largely attributable to the organisation’s care homes. Whilst this figure is an improvement on the equivalent deficit of £555,0222 seen in the previous year it does reflect lower occupancy levels across the organisation’s largest home Barnes Lodge in Tonbridge. The impact of this however has been partly offset by high occupancy levels across the rest of the organisation’s residential care portfolio.
The organisation’s total net assets as at the end of September 2019 were £38,751,778 with this a decrease of £1,168,456 from the figure of £39,920,234 as at the end of the previous year. The majority of this decrease was due to net current assets reflecting the use of cash reserves and draw down of short-term development funding being used to fund the organisation’s development programme activities.
The organisation welcomes residents from all backgrounds. In particular, it believes it is important that access to accommodation is not restricted to those who can afford to pay its fees. All the organisation’s housing rents are set in accordance with guidance from the housing regulator on social and affordable rents. Subject to their own personal circumstances, many of those who benefit from our supported housing, extra care housing and domiciliary care services also receive subsidy from a local authority towards their costs.
As at the end of the financial year, 62% of all of the organisation’s residential accommodation, including both residential care and housing, was either occupied by, or available to, those who may be unable to meet the cost of such accommodation from their own means. The organisation is currently on site with another two extra care housing schemes which will provide a further 57 affordable units, increasing the above figure to 68%.
As at the end of the financial year, 33% of residents within the organisation’s care homes were in receipt of subsidy from a local authority towards the payment of their fees.
The organisation aims to ensure that resources are focussed on front line service delivery, with this including appropriate investment in those property assets which are used to deliver our services. We have continued to invest in our property stock throughout the twelve months to September 2019, with expenditure of £427,791 on day to day maintenance and planned major repairs.