Financial Commentary

Liam O'Shaughnessy, our
Finance Director since 1994

DURING 2007 we strengthened our financial viability through:

Taking 22 homes into management
Maintaining our designated reserves for major repairs at £2m
Increasing our available free reserves by £228k
Spending £498k on maintenance
Rent Cash collection rate of 98.42%
Occupancy rate of 98.76%

The spend on maintenance ensures that our tenants live in well-maintained homes. The high cash collection rate for rent ensures that residents of Innisfree properties are able to sustain their tenancies.

At 31 March 2007, Innisfree had used £863K of its cash reserves to fund the purchase of homes. Innisfree purchased 31 homes in July 2007 funding the purchase from Innisfree's cash balance. This increased the amount of Innisfree's cash reserves funding the purchase of homes to £2.49m. This will help Innisfree to keep interest costs under control.

Salaries

The salary of the Chief Executive for the year ended 31 March 2007 was £61,120. She received no other benefits apart from membership of the Pensions Trust. The salaries of the four members of the senior management team, excluding the Chief Executive, amounted to £168,918.

Summary of income and expenditure

	2007 £'000s	2006 £'000s
Turnover	2,301	2,233
less repairs and administration costs	1,529	1,354
leaving an operating surplus of	772	879
less interest paid on loans	704	648
plus interest received	160	78
leaving a surplus of	228	309
Available surplus	228	309
Balance Sheet
Cost of investments in homes	36,200	36,277
Investments in fixed assets	40	34
Funds we hold (cash plus money we are owed less bills to be paid)	2,991	2,712
Total	39,231	39,023
Social Housing Grant	26,890	26,890
Long-term loans for housing	8,743	8,763
Major repairs reserve	2,000	2,000
Available reserves	1,598	1,370
Total	39,231	39,023