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Finance
NCHA: A safe bet for the banks
Paul Higginbotham,
Director of Finance
Director of Finance
The NCHA group invested £41 million in new homes for rent, shared ownership and sale during 2006/07. In addition, it spent £11.5 million on maintenance and improvements that will bring its general needs stock up to the Decent Homes Standard by the 2010 target.
A large boost to the East Midlands economy, the investment created hundreds of jobs on building sites and in building supplies industry as well as putting roofs over the heads of people in housing need.
Private finance, which accounted for 56% of the capital spending on new homes in 2006/07, is a key element of the NCHA budget. During the year the Association negotiated new loans that will support its future building programme and save it £2.5 million in interest charges over the next 30 years.
Under the new arrangements:
- A large proportion of the Association’s existing debt of £150 million is to be refinanced on better terms through two loans, one from the Bank of Scotland, and the second from Lloyds TSB.
- These loans will also provide £30 million of ‘new money’ to finance the Association’s development programme.
NCHA has refinanced £120 million on better terms
"The new loans are the result of competitive bids with small margins above the base rate from a number of banks who see NCHA as a safe bet and are eager to work with us,"’ says Paul Higginbotham, NCHA’s Finance Director. "They are testament to the Group’s solid financial position and will help us make better use of our strong balance sheet."
NCHA’s turnover rose by £1 million during the year to £41.2 million. The small deficit for the year was the result of increased investment in the Decent Homes Standard programme. "Investing in the future is a good way to spend our money,"’ says Paul Higginbotham.
Further reading
To read this year’s Annual Financial Accounts, please
click here
For more information about the NCHA Finance department’s work, please read the press release below:
For more information about the NCHA Finance department’s work, please read the press release below:
30 July 2007: NCHA in £150m deal with Bank of Scotland & Lloyds TSB
