Anchor Trust
Annual Report &
Financial Statements
For the year ended 31 March 2014
Happy living for the years ahead
2
Cover photos:
Main image: Resident Patricia Freeman with Activities Co-ordinator Liam Keating
Top right: Tenants George Metcalfe and Barbara Hudson
Bottom right: Tenants Nasamon Nadian and Patsy Ader
3
Contents
s1
p5
Chairman’s and Chief Executive’s Statement
s2
p9
Operating and Financial Review incl. Strategic Report
s3
p29
Corporate Governance Report
s4
p41
Board, Directors and Advisors
s5
p43
Directors’ Report
s6
p47
Independent Auditor’s Report
s7
Financial Statements
p51
p52
–– Consolidated Income and Expenditure Account
p53
–– Consolidated Balance Sheet
p54
–– Company Balance Sheet
p55
–– Consolidated Cash Flow Statement
p56
–– Notes to the Financial Statements s8
p77
The Board
s9
p81
Executive Management Board
4
A feeling of belonging
Vera, 94, chose Anchor as her home 20 years ago.
“I love it here,” she says of her Guardian Court home
in York where she’s lived for the past 13 years.
Vera and her husband Fred were married for 67 years
and, while Vera has found it difficult to adjust to life
without him since he died a year ago, the community
of friends and colleagues at Guardian Court is helping
her to come to terms with her loss.
“I’m happy to go to the hairdressers here
once a week, and the occasional tea party
and coffee morning. I have everything
I need here, and the surroundings
and the people make
me feel like I belong.”
Vera Turner
Guardian Court, York
“I’ve always felt
safe, happy and at
home with Anchor.”
1
Section 1
Chairman’s and
Chief Executive’s
Statement
5
6
Chairman’s and Chief Executive’s
Statement
O
ur promise of “Happy living
for the years ahead” can
only be delivered thanks
to the kindness,
compassion and care shown by
colleagues across our housing
and care services, as the examples
in these pages demonstrate.
We invested £43.6m in our existing properties
in 2013/14. This and our ground-breaking work
with iPads in our care homes are examples of
our commitment to delivering happy living for
customers. As a result, demand is strong in our
care homes and in our rented housing we ended
the year with tenants living in 21,973 properties
out of a total of 22,365 available – the highest
proportion recorded in recent years.
We work hard to foster a culture of openness
and transparency and were instrumental in
establishing National Care Home Open Day and
the ground-breaking Your Care Rating satisfaction
survey. These initiatives are helping to drive
quality and trust in the sector. At the same time
they are shining a spotlight on the great care and
housing provided at Anchor and demonstrating
how our services reduce isolation.
Anchor-commissioned research from the
International Longevity Centre-UK showed the
increasing need to employ people with the skills
and attitude to work with older people in this time
of demographic change. This presents significant
challenges for organisations wishing to recruit
and retain the best people. This is critical to the
quality of the service we provide and is why we are
working hard to make Anchor an employer of
choice while also demonstrating the brilliant
work carried out in our care homes and
retirement housing across England.
Linked to this, we are making strong
progress on colleague engagement
with a five per cent increase in
engagement in the past year.
While customer satisfaction remains
high, we recognise we have more
to do. We have worked hard over
the past year to understand the key
issues affecting customer satisfaction
and this will influence our approach in
the year to come.
We listen to our customers
and gather feedback
in a variety of ways,
including through our
Customer Services
Committee and its
regional forums.
This focus
on what
older people
want is central to
our values and
has ensured our
housing and
care services
remain popular.
We have invested significantly
in training and developing our
people and in maintaining our
existing properties to ensure
we deliver on our promise of
Happy living for the
years ahead.
We have also made significant
progress with our new
developments, with contractors
on-site at six locations which will
deliver almost 1,000 new homes
when completed.
These new developments will offer
a choice of great places and ways
7
to live. Our retirement village model meets
the strong need for integrated services to support
an active, independent lifestyle in later life.
Our retirement villages include independent and
assisted living apartments, a care home which
includes support for people living with dementia,
and a wide range of facilities typically including
a bistro, delicatessen, gym and swimming pool,
giving people the opportunity to participate in social
activities and village community life. Two villages will
open in 2014/15, with further sites in the pipeline.
Our new care home pipeline will provide
residential care including specialist support for
people living with dementia, in purpose built
surroundings, enhancing the portfolio of homes
around the country.
Thinking beyond our current business plan,
we are also building a significant pipeline of
sites across the country on which we will develop
housing and care tailored to the needs of, and
closely integrated with, their local communities.
The population is ageing, meaning more complex
care needs and increasing levels of dementia.
While our commitment to older people has not
changed, needs and expectations have altered
immeasurably as a result of this demographic
shift and we continue to evolve to meet them.
Anchor’s resilience lies in ensuring the older people
we serve are at the heart of our organisation.
Continued pressure on public funding and consumer
spending power has driven an ever-greater focus
on value-for-money services shaped around
customers’ needs. For us, value for money means
delivering services as cost-effectively as possible
while achieving high levels of customer satisfaction.
We accomplish this by working in close partnership
with older people, their families and commissioners to
tailor person-centred services to individuals. We have
also increased our use of benchmarking information.
appropriate, and that the risk profile is
reviewed regularly.
Concerns about issues such as care quality can
be addressed quickly as a result of our robust
approach to safeguarding and ‘whistle-blowing’,
coupled with a culture which encourages
colleagues to voice their views.
We continue to invest in new skills throughout
Anchor, by providing great development
opportunities for colleagues, and recruiting
to new roles. This has included the new role
of Director of Property, Development and
Procurement created during the year.
We thank the great people in Anchor who work
tirelessly to deliver on our promise of happy living,
many of whom have been acknowledged this
year through industry awards.
We thank Aman Dalvi OBE, whose tenure
as Chairman ended last year, for his legacy
of strong governance and Lesley James
CBE, who was Chairman of the Executive
Remuneration Committee, for her excellent
contribution to the organisation.
The commitment to strong governance
remains. Coupled with an unerring
commitment to delivering what
older people want, it will ensure
our continued viability as an
organisation and high-quality
services for older people for
many years to come.
Pamela Chesters CBE
Chairman
While maintaining a strong customer service focus
we’re pleased to say our operating surplus was in line
with 2013 and we maintain a strong cash position.
In our rapidly-changing world it is vital that the Board
monitors the environment to identify, quantify and
manage risks. Through the Audit & Risk Committee
the Board receives assurance that controls are
Jane Ashcroft CBE
Chief Executive
8
Making a difference
Working in care isn’t for everyone and many young
people don’t have it on their list of jobs they’d like
to do after leaving education. But 20-year-old Care
Assistant Craig, who works at Orchard Court care
home in Surrey, disagrees.
Craig, a former showjumper, turned to caring to
make a difference – and hasn’t looked back.
“My great-grandma had dementia, and was
cared for at a home. My grandfather also needed
hospice care towards the end of his life. I have
wonderful memories of the kind people who cared
for them both.
“A few years ago I had an accident, and can’t
ride any more. I reassessed what I want from life
and became a carer so I can make a difference to
people, like those who cared for my family. I love it,”
says Craig. “I enjoy the challenges of working with
people with dementia, and I’ve talked to my home
manager about specialising in this area.”
Craig Young pictured with
resident Edith Glegg
Care Assistant, Orchard Court, Lingfield, Surrey
“A career in care is a great option for
young people,” says Craig. “It gives
you a unique perspective and you
gain valuable life experience.”
2
Section 2
Operating and Financial Review
including Strategic Report
9
10
Operating and Financial
Review including Strategic Report
This section includes the requirements of the Strategic Report:
Principal activities, the business model, review of the year’s performance,
key performance indicators, key risk disclosures and future developments.
Overview of the business
Anchor is England’s largest not-for-profit provider of
housing and care for older people. We celebrated our
45th anniversary during the financial year 2013/14.
We maintain the same commitment to supporting
older people as we did when we began life in 1968
as Help the Aged (Oxford) Housing Association.
That commitment is best expressed in our
statement “Happy living for the years ahead”.
Our passion is giving older people a choice of great
places and ways to live. We do this by treating our
customers and our colleagues as individuals and by
building meaningful, long-term relationships based
on happiness, openness and respect.
Today, services include rented and leasehold
retirement properties, residential care homes,
specialist dementia care homes and retirement
villages across England and we have ambitious
Anchor’s Chief Executive Jane Ashcroft was
made a CBE in the New Year Honours for
her services to older people.
Anchor Trust Annual Report & Financial Statements
plans for further growth. We provide homes to more
than 37,000 older people at almost 1,000 locations
nd employ more than 8,400 people.
Retirement housing: We provide retirement
housing to rent at 667 locations, some of which
provide extra care. Our leasehold property
management activity provides services to
leaseholders at 223 estates.
Residential care homes: We operate 93 care
homes, making Anchor one of the largest not-for-profit
providers of residential care homes in England.
Charitable purpose
Each year Anchor’s Board (the Board) reviews
the organisation’s aims, objectives and activities to
ensure that the organisation remains focused on its
charitable activities. This review looks at what we
achieved and the outcomes of the Company’s work in
the previous 12 months. The review looks at the success
of each key activity and the benefits they have brought
to those groups of people we are set up to help. We
have referred to the guidance contained in the Charity
Commission’s general guidance on public benefit when
reviewing our aims and objectives and in planning
future activities. The Board believes that the provision of
specialist retirement housing and residential care to older
people, generally those more than 65 years old, delivers
a valuable public benefit. There are no restrictions on
who is available to benefit from Anchor’s activities
based on sexuality, ethnicity, disability, religion or gender.
Anchor is a national organisation and provides services
throughout England.
All of our surpluses are reinvested in the business for
the benefit of customers. As a charity, Anchor does
not pay dividends.
11
The year under review
Focusing on serving the needs of older
people – a rapidly increasing group spanning
several generations as people live longer
and have increasingly complex needs.
With increasing numbers of people living with
dementia, we have been working on pilots to
inform an enhanced dementia offering utilising
global best practice. Alongside this, we have
begun using iPads to support meaningful activity
for our care home residents. Initial feedback has
been extremely positive and we plan to do further
research on the impact.
At a time of unprecedented economic, demographic
and regulatory change, it is crucial that we focus
on meeting older people’s changing needs and
business plan involved exiting from the provision
of local authority-funded home care services and
creating a regional structure to make us easier for
customers to navigate. In 2013/14 we announced
our intention to exit from the small number of
nursing care homes in our portfolio as we focus
on and grow our retirement housing to rent and to
buy, assisted living and residential care homes.
993
additional homes
Building new models of housing for sale and
Construction work has begun at six sites: Bishopstoke Park retirement village in Eastleigh,
Hampshire
 Hampshire Lakes retirement village in Yateley,
Hampshire
 Moore Place care home in Esher, Surrey
e home in Southampton,

Hampshire
 An independent living development
in Weybridge, Surrey
 A new care home in Aylesbury, Buckinghamshire.
Continuously improving our affordable
housing offer.
When completed, these developments will provide
993 additional homes, including care home rooms.
Interest in the developments has been high, with more
existing housing.
of Bishopstoke Park and Hampshire Lakes, where
construction is most advanced, being made off-plan.
enabling us to replace more than 900 bathrooms,
almost 800 kitchens and install new windows at
more than 900 properties.
This investment is helping to ensure demand
remains strong among potential customers.
With tenants living in 21,973 properties out of a
total of 22,365 available, occupancy in our rented
the highest level we have recorded in recent years.
£
43.6
m
invested
of delivery.
Delivering value for money is a key focus of our
business plan and our approach is summarised
in the statement on pages 14-24 and the
accompanying value for money report.
One example of smarter working is that location
managers now have access to Northgate, our
customer management system, ensuring they have
up-to-date information on customer accounts.
We will continue to look at the structure of the
about the cost savings we have achieved this year is
included in the value for money report on page 14.
For year ending 31 March 2014
12
2.5%
pay increase
Becoming an employer of choice.
Becoming synonymous with happy colleagues
and happy customers.
The International Longevity Centre-UK’s report
on workforce issues in social care, commissioned
by Anchor, demonstrates how organisations
will need to work hard to attract and retain
great people.
Despite a challenging financial environment,
we awarded a pay increase of 2.5 per cent to
most colleagues in 2013/14. This means that
over the last three years the majority will have
seen a pay increase of around 10 per cent.
We also committed to ensuring that, from April
2013, all Anchor colleagues were paid at above
the National Minimum Wage and made a further
commitment to progress and align Level 2
Care Assistants and Activity Co-ordinators
to the Living Wage.
Pension auto-enrolment was introduced
across the organisation – with a contribution
from Anchor helping colleagues save for their
future. We have also continued to provide free
flu immunisation with a significantly higher
uptake this year.
Changes to the way we gather information
about why colleagues leave Anchor have
enabled us to track trends and issues and
identify ways to make Anchor a great place
to work for existing and future colleagues.
We recognise that happy colleagues mean happy
customers and we have made significant progress
on colleague engagement, with a five per cent
increase in engagement (to 77 per cent) since
the 2012/13 survey. This is against an average
for the housing sector of 72 per cent.
We have run our award-winning Anchor Way
initiative annually since the launch of the
business plan. This continued with sessions for
managers on taking the organisation from good
to great. A key theme of the events was how to
work together more effectively across our services
to achieve better outcomes for customers.
Overall satisfaction has been maintained in our
care homes at 96 per cent, which is slightly above
the average of all homes assessed using the
independent Your Care Rating survey.
The score for satisfaction for our rented housing
dropped slightly, from 90 per cent to 88 per cent.
In our leasehold services, it has remained at
78 per cent.
We still want to improve our services and have
conducted in-depth analysis to understand the
main issues impacting on satisfaction. We have
developed a plan to act on this in 2014/15.
96%
CARE HOME
CUSTOMER SATISFACTION
Anchor Trust Annual Report & Financial Statements
77%
COLLEAGUE ENGAGEMENT
13
Property investment
2013/14
2014/15
Total works investment (excluding responsive repairs):
£43.6m
£54.0m
£36.6m on housing
£7.0m on care homes
£44.0m on housing
£10.0m on care homes
INCLUDING:
Internal redecorations at
190
Internal redecorations at
177
locations
housing
schemes
Windows at
915
properties
919
13
care homes
840 properties
at 23 housing
schemes and
75 bedrooms
at two care
homes
Bathrooms at
properties
886 housing schemes
and 33 care homes
Kitchens
at
784
housing properties
215
187
locations
housing
schemes
Windows at
1,820
properties
Bathrooms at
2,201
properties
58 housing schemes
plus 29 care homes
28
care homes
1,538 properties
at 40 housing
schemes and
282 rooms at
seven care
homes
Kitchens
at
675
housing properties
For year ending 31 March 2014
14
The year ahead
The financial challenges facing many older people
and commissioners of services for them give
further impetus for us to maintain our customer
focus and provide excellent value for money.
This will be achieved by driving further efficiencies
which release more time for colleagues to spend
with customers. We will make significant strides
towards our key performance indicators being
among the best 25 per cent in the sectors in
which we work.
We will continue to invest in our existing services,
with plans to spend a further £54m in planned
works over the coming year. The results of our
colleague and customer satisfaction surveys
will continue to inform priorities.
Our ambitious development plans will continue,
with further sites planned in Church Crookham
in Hampshire, Sidcup in Kent, Sunningdale in
Berkshire, Princes Risborough in Buckinghamshire
and Haywards Heath in Sussex. We also have a
pipeline of further sites for development.
New people and payroll systems are due to
come online, enabling greater automation of
processes and we will continue to invest in
training for customer-facing colleagues and
leadership development.
The Manager Direct helpline to support managers
with people issues will grow into a service offering
expert advice to all colleagues. We will also be
bringing our executive search function in-house,
extending the apprenticeship programme and plan
to have a small number of management trainees.
Estate Manager Pauline Tyler with
leaseholder Brenda Baker
Value for money
Savings which don’t impact detrimentally on
the quality of services allow us to deliver more
for our customers at the same cost. We are
very pleased therefore that through our
procurement activities in the last year we
saw a £150,000 direct reduction in costs
(on security and water systems), a £325,000
saving against budgets, (on IT, phones, stationery
and catering supplies) and a one off rebate of
£204,000 (provision of food). This £679,000 is
complimented by the work done through the
‘Big Four’ programmes which will realise savings
of £800,000 per annum from next year.
How we are working to
deliver value for money
As a result of retendering our voice and data contract,
our housing customers and their families will get free
Wi-Fi access in communal areas and care home
customers and their families will have free access
throughout the homes. This builds on the introduction
of iPads to support meaningful activity for our care
home residents. With 61 homes already using
iPads, we will roll them out to all homes in 2014/15.
Value for money to us is about delivering services
as cost-effectively as possible while achieving
high levels of customer satisfaction. These two
drivers underpin our business plan. Through the
implementation of that plan we have streamlined
our service offer and integrated the management
of our care and housing services. These steps
have made us a more focused organisation and
one better able to deliver efficiencies. Over time
we believe it will help make us leaner and more
aligned to delivering on the retirement and care
village model of housing.
We will also build on our work to bring volunteers
into our care homes, something which has had
a very positive impact for residents. We will also
be looking at how we can develop volunteering
in our housing activities.
The Board is accountable for the delivery of
value for money and will, in pursuance of that
role, expect the Executive Management Board
to evidence this, through the delivery of the
business plan. A review of the organisation’s
Anchor Trust Annual Report & Financial Statements
15
strategic approach to value for money and how
we understand it has been undertaken by the
Board and this has also been endorsed by our
Customer Services Committee in the last year.
Day-to-day delivery of value for money has been
further strengthened by the creation of a value for
money review group. The group’s objectives are to
raise the profile of value for money, explain what
we mean by it and ensure it is built into the plans
of each of our core services and that gains are
well evidenced.
The ‘Big Four’ programmes
transforming our business
The current catalysts of
change making the business
plan a reality are our Big Four
programmes. Led by a change
team of project managers
and closely tracked by the
Executive Management
Board these programmes are
realising significant benefits.
The Tools for Managing People Programme
– our new online HR and payroll system, known
as myHR, makes it quick and easy for colleagues
to manage a wide range of HR processes,
from booking days off to checking their pay.
The introduction of myHR will allow colleagues
to spend more time with customers. The system
will save approximately £500,000 a year on
existing costs. Other efficiencies include sickness
absence monitoring, a reduction in payroll queries
and freeing up colleagues’ time, are additional
gains saving us time and money.
The Business Performance Programme
is designed to improve our ability in making key
business decisions. It does this through providing
managers with the right performance information
at the right time. It ensures decision-making
is supported by a budget process which
facilitates effective long-term financial planning
and the day-to-day management of resources.
This programme through enhanced automation
of reporting will save £290,000 a year.
The Customer Experience Programme
reviews and challenges how we provide
services to customers to ensure that every
step adds value. The programme is led by our
Head of Customer Service and Engagement
under whose direction the Customer Centre
(the contact point for customers with enquiries)
has become increasingly efficient. It has seen a
33 per cent increase in activity and a 5 per cent
reduction in staff costs since 2011/12.
Our Standards Programme was refocused
in the last year to look at improving the ‘look
and feel’ of our properties. We were aware
of inconsistencies across the business in the
physical standards delivered as part of our
planned works programme. With the help of
customers we have now delivered a revised
and consistent standard in relation to bathroom
and kitchen replacements and in the periodic
redecoration of the communal areas within
our schemes. These revised standards will deliver
a product customers value and through greater
consistency increase our ability to obtain value
for money in the contracts we award.
Tenant David Hartley with
Scheme Manager Ellen Swanston
For year ending 31 March 2014
16
Revitalising our approach to
buying goods and services
We are introducing a new, more collaborative,
way of working with contractors and suppliers.
As a consequence of this we now expect to realise
procurement savings of more than £20m on our
original five-year planned work budget estimates
of £240m.
Following the appointment of a new Head of
Procurement and Purchasing in June 2013 we
have undertaken a holistic review of this area of
our business. We have restructured the team
and appointed specialist category managers
accountable for delivering value in the purchasing
of specific goods and services. This specialism
ensures we challenge our contractors to provide
us with their best deal. An example of this in
practice is demonstrated by a recent rebate of
£204,000 on a contract for the supply of food
ingredients – a saving arising from negotiation
based on comparing prices in the open market.
This move to greater specialism will build on
the successes already achieved through our
procurement activity which in the last year
saw the following:
A standardisation and reduction in the
range of food supplies leading to a
£57,000 saving against budget
Water systems and pump procurement
leading to a £22,000 saving against
costs incurred in the previous year
Security (boarding, alarms and manning
arrangements) – saving of £131,000
against prior year actual costs
A stationery contract which witnessed a
price decrease of £71,000 on the range
of products available
A rationalisation of our phone line
requirements which delivered a saving
of £72,000 against budget
Anchor Trust Annual Report & Financial Statements
A restructuring of IT contracts
and hardware cancellations
which delivered £126,000
saving against budget
The entering into new and
renegotiated software licences
which will deliver £260,000 savings
over the next three years compared
to previous costs.
The procurement team encourages regular
feedback. As a result, procurement cards
are being introduced from April 2014 to 1,000
location-based colleagues so they can buy
low-value items more cost effectively but
with appropriate controls.
Anchor people
Last year we reported that we had reviewed
the majority of non-customer facing roles to
reduce complexity and duplication and to speed
up decision making. Combined with a reduction
in the number (from 38 to 32) of our most senior
managers these two steps have saved us
£2.5m a year.
Better processes and an improved approach to
performance management have helped:
Reduce sickness levels by 13 per cent in
the last year (equivalent to 46,000 hours
with a monetary value, based on an
average care worker’s salary, of £356,000)
Reduce the number of colleagues leaving
from 1,501 (2012/13) to 925 (2013/14).
We estimate that this reduction has saved
us £2.9m in additional recruitment costs,
as well as management time.
We continue to work hard to engage with
colleagues and increase their contribution to,
and sense of fulfilment with, Anchor. It is therefore
pleasing that our engagement score has increased.
17
Below are our management costs benchmarked against the HCA’s Global Accounts:
Management costs per unit
2014
Actual
2013
Actual
Retirement housing to let
£1,047
£1,065
Residential care homes
£4,140
£3,759
Weighted average
£1,542
£1,500
Benchmark
ref
£952
1
Asset maximisation
Underpinning all of Anchor’s investment in
new housing and care home developments is
a rigorous analysis of all proposed income and
costs to ensure an internal rate of return of at
least 10 per cent. Business cases are assessed
by the Executive Management Board before
referral to Board for approval, prior to starting any
building development, and significant variations
to the business case are re-assessed and reapproved before being approved by the Board.
The same internal rate of return is also applied
when assessing the viability of existing assets.
As part of the asset management strategy,
we regularly review the performance of our
locations, taking into account the future
investment in planned works. Where the cost
of works is likely to result in a location underperforming financially further analysis is done,
taking into account the local market, the cost
of works and operational priorities, to determine
its future.
In 2013/14 we exited from four housing
locations (129 properties) and three nursing
homes, securing £3.5m in sales value.
We have announced plans to exit from
three more locations in 2014/15.
We have surveyed our existing locations and
identified opportunities to create an additional
200 homes. Of these, 71 could be in
development in 2015/16, subject to Homes
& Communities Agency and planning approval.
Our benchmarked maintenance costs per unit are:
Maintenance costs per unit
2014
Actual
2013
Actual
Retirement housing to let
£890
£731
Residential care homes
£618
£864
Weighted average
£846
£784
Benchmark
£992
ref
2
1
HCA global accounts 2013. The 2013 figures reported to the HCA and incorporated within the data for the Global Accounts of Housing Providers were
£1,542 for management. This figure however incorporates the management costs of our care homes and for value for money benchmarking purposes
has been split giving the above amended figures for care and housing.
2
HCA global accounts 2013. The 2013 figures reported to the HCA and incorporated within the data for the Global Accounts of Housing Providers were
£846 for maintenance. This figure however incorporates the maintenance costs of our care homes and for value for money benchmarking purposes has
been split giving the above amended figures for care and housing.
continued on p20 Ò
For year ending 31 March 2014
18
Introducing
new technology
As part of our on-going commitment to
person-centred activities and meaningful
engagement we've introduced iPads
into our care homes. Here's just a few
examples of how they're making a
difference to our customers' lives.
“I have been downloading old comedy films
for our ‘Heroes of comedy’ sessions – we have
a customer who loves the Marx Brothers. One
lady loves Dick Emery and her favourite saying
is ‘Oh you are awful, but I like you!’ She really
enjoyed watching the programme again.”
Joanne McKenzie
Activities Co-ordinator, Holmpark, Birmingham
“Heathside’s Activities Co-ordinator Holly
Manley used the iPad with a resident and his
wife to look up maps from their home country,
Ukraine. They also used a translation app so the
gentleman was able to understand what they
were doing.”
Katie Elder
Activities Co-ordinator, Heathside, Woking
“We have a particular resident living with
dementia who has just lost his wife and finds
it extremely difficult to communicate. Through
looking at his Personal Plan we discovered him
and his wife were very fond of cats. We looked
through Google for images of the cats and
kittens and watched videos of cats trying to talk.
Our resident let out a huge smile and began to
stroke the screen and try to talk.”
Danielle Watts
Activities Co-ordinator, Linwood, Thames Ditton
Administrator Dawn Goodings and resident Edna Dennis
19
“During fitness is fun week we used the iPad
to take a trip back in time and look at all the
swimming baths our customers used to visit.
One of our customers remembered going
to Bramley baths and using the iPad we
discovered a project had been set up to
renovate the Victorian baths. We decided to
visit and were treated to a guided tour and
a talk about the history of the building.
Our customer got so much out of this visit
and enjoyed his swim too.”
Betty Rhodes
“We have a lady at Firth House that lived in
London. Her son Skypes every Sunday at 2pm.
She was very surprised to see what we can do
him. She now looks forward to Sundays.”
Sharon Ayre
Activities Coordinator, Firth House, Selby
For year ending 31 March 2014
20
Environmental savings and value
Since the mid-1990s we have reduced our
number of offices from 12 to five. Offices are an
expensive asset to maintain and we anticipate
further efficiency savings of £170,000 a year
when our two Bradford offices are combined into
a single new office in 2014/15. Reducing the
number of offices has increased the level of
travel but this is monitored closely to limit costs.
Since 2011/12 our travel and subsistence costs
have risen from £4.4m to £4.6m. At 1.5 per
cent per year, our cost increases compare very
favourably with the escalating costs of food and
above-inflation public transport fare rises.
We are currently investing in new “voice and data”
technology which should further reduce the need
for our colleagues to travel. It is anticipated that this
will reduce our annual travel budget by £350,000
per year, make us more efficient (as time will not
be lost travelling) and reduce our carbon footprint.
With almost 1,000 retirement housing and care
locations, many of which have communal areas,
we use significant amounts of energy. In 2013/14
we changed our energy suppliers and secured
rates which were 27 per cent below the UK average
domestic rate for gas and 20 per cent for electricity.
Our energy usage has remained fairly static over the
last seven years. To achieve our target of reducing
our energy usage by 10 per cent within 10 years,
we will use 2014/15 to significantly improve how
we collect and analyse energy usage data.
Health and safety compliance
Health and safety performance continues to be satisfactory with compliance in areas such as gas safety,
electrical safety and lift maintenance being consistently good.
2014 Actual
2014 Target
2013 Actual
Gas safety checks
99.9%
100.0%
99.8%
Lift safety checks
99.9%
100.0%
96.4%
100.0%
100.0%
99.6%
Fixed electrical wiring inspections
Senior management provide clear and strong direction in striving for high standards of health and safety
compliance and there is a health and safety management system in place to achieve this. A health and
safety plan is in place with clear targets to further improve health and safety performance.
Care Quality Commission Compliance
CQC target compliance is 100 per cent. Under this definition, no service can have any concerns,
which is a stretching target. At the beginning of the year, we changed the way in which we measured
compliance to adopt a more rigorous approach. This initially led to a drop in our compliance score but
we are pleased to note that this is now improving month on month.
Anchor Trust Annual Report & Financial Statements
21
Customer satisfaction and social value
We use annual and monthly satisfaction
surveys to closely track customer opinion and
have strengthened our approach to customer
engagement. The creation of a permanent
Scrutiny Panel allows customer representatives
to take a detailed look at areas of our service
delivery. As well as suggesting improvements
they will also recommend how they think
efficiencies can be delivered.
We monitor customer satisfaction very closely.
This close monitoring has highlighted some
declining satisfaction in the services we provide
(overall satisfaction has fallen from 90 per cent
(2010) to 86 per cent in the current financial year).
As a consequence, the Executive Management
Board is increasing its focus on customer
service, in order to reverse this decline.
Delivering value for money services is not all
about cost – we are keen to also deliver real
social value. Our campaigning under the Grey
Pride banner is raising awareness of issues of
importance to older people. Among a number
of other campaigns currently running, our
Anchor Community Band built awareness of the
organisation among potential customers while
raising £15,000 for the charity Contact the Elderly.
We also have opened our care homes
up to the wider community through the
volunteer programme. This has resulted in
the recruitment of 500 volunteers. While not
the driver for this work, it is pleasing that 12
volunteers went on to obtain permanent roles
with us. The equivalent monetary value of the
services volunteers provide, setting aside the
social value, is considerable.
It is also pleasing to note that our expenditure
on translation costs has fallen from £24,500
in 2010/11 to £10,000 (2012/13) partly as a
result of using our own ethnically diverse staff
population as translators where possible.
Care Manager
Emma Hawtin
with resident
Brenda Wilson
For year ending 31 March 2014
22
Performance (Key Performance Indicators)
Our Key Performance Indicators (KPIs) are an
important measure of our success. They are used
in setting targets for colleagues and are cascaded
throughout the business. In setting the KPIs it is
important to identify the correct drivers to focus on,
use appropriate benchmarks to determine
the right targets for the business, and report timely
and accurate information to assess performance.
All the KPIs are closely linked to our understanding
of value for money.
a) Maximising income and resources:
2014
Actual
2014
Target
2013
Actual
Benchmark
ref
2.9%
3.5%
3.8%
5.9% care homes
4.9% housing
1
Staff turnover
14.0%
15.0%
16.0%
18.6% care homes
11.5% housing
2
Colleague engagement
77.0%
74.0%
72.0%
68.0%
3
Occupancy of care homes
92.2%
92.8%
92.2%
88.3%
4
Housing occupancy
98.1%
97.9%
97.7%
95.8%
5
Sickness absence
b) Delivering value:
2014
Actual
2014
Target
Benchmark
Customer satisfaction
86.0%
92.0%
84.7%
Customer satisfaction – repairs
84.0%
92.0%
84.1%
ref
6
2014 Actual
2014 Target
2013 Actual
Complaints responded to within 14 days
95.8%
92.0%
97.1%
Repairs completed on time
97.2%
97.0%
97.3%
CQC compliance
71.4%
100.0%
87.3%
42
48
48
Reporting of Injuries, Diseases, and Dangerous
Occurrences Regulations (RIDDOR)
We have looked in detail at all indicators, particularly those which have seen a decline and have developed plans to
address them in 2014/15.
CIPD survey 2012 (in connection with Simply Health)
National Minimum Data Set-Skills for Care report and
housing sector by NMDS-SC dashboard
3
ORC International overall benchmark 2012
4
Colliers International spring 2013 care homes review
5
SDR statistical data 2013
6
Survey of ‘top 20’ providers annual reports 2013
1
2
Anchor Trust Annual Report & Financial Statements
23
Key objectives for 2014/15
We expect efficiency savings of £250,000,
through the application of a restructure of
our property services.
The procurement team are committed to
delivering £3m value savings in 2014/15
and have engaged with existing suppliers
to achieve this. Part of this saving is
anticipated to arise out of our drive to reduce
energy expenditure. The employment of a
specialist agent to monitor our gas, water and
electricity bills will identify efficiencies, pick up
on errors and, we anticipate, generate
£200,000 in savings against current bills.
Delivering a change
A more detailed report, entitled ‘Value for
money, delivering a change’ can be found
on our website.
Resident Doreen Gascoigne with Care Assistant Charlotte Swales
For year ending 31 March 2014
24
Anchor’s principal risks and uncertainties
The nature of Anchor’s business is such that it
faces risks and uncertainties on a daily basis.
Anchor’s principal risks are categorised as either
operational risks, financial risks or strategic risks.
The most important risks are detailed in a centrally
managed risk register and regularly reviewed and
challenged by the Board, Audit & Risk Committee
and the Executive Management Board.
Anchor’s principal risks and the mitigating activities
in place to address them, are listed below. It is
recognised that Anchor is exposed to a wider
number of risks than those listed.
Safeguarding customers
As England’s largest not-for-profit provider of
housing and care for older people, Anchor is
responsible to varying degrees for the wellbeing
and safeguarding of vulnerable adults.
Controls include:
 Dedicated resources responsible for health
and safety, customer care, dementia,
safeguarding and food safety.
 Comprehensive people plan to ensure the
best people are recruited and trained to
provide services to customers.
Financial risk – deficits in Anchor’s pension scheme
Anchor remains responsible for any deficits in its
final salary pension scheme.
Various actions have been taken to mitigate
this including:
 Closure of the scheme to new members
and future accruals.
 On-going review of liabilities.
 In 2013 an agreement was reached with
the trustees on the terms of a new recovery
plan designed to eliminate the deficit in the
defined benefit scheme over 10 years.
Public spending cuts
A significant proportion of Anchor’s revenue is
derived from public sources. Cuts in public spending
inhibit Anchor’s ability to continue to provide services
to disadvantaged adults. In addition, the impact
of the provisions in the Care Bill to cap individuals’
social care costs from April 2016 is yet to be
fully understood. We have worked with leading
think-tank the Strategic Society Centre to develop
thinking in this area and inform the Department of
Health’s consultation on its implementation.
 Continuous focus on quality.
Controls include:
 Established monitoring and audit programme.
 Proactive engagement with commissioning
bodies, trade bodies and government.
People risk
Anchor employs nearly 10,000 people. Failure to
have the right people in place doing the right
things will limit our ability to provide great services
to older people.
 Welfare reform group to provide
feedback to government on the impact
of proposed changes.
 Financial and social inclusion strategy to
support customers.
Controls include:
 Robust colleague engagement process
for effective communication.
 Strategic compensation and benefits policy.
 Extensive learning and development programme.
Anchor Trust Annual Report & Financial Statements
The risks listed above do not comprise all of those
identified by the Board and are not set out in any
order of priority.
25
Financial results for the year
Underlying business performance is in line
with the previous financial year, with a strong
performance in retirement housing being partially
offset by the performance in residential care
homes. Retirement housing has benefited from
the continuing programme to fill empty properties.
Demand for retirement housing properties is
strong, and the number of empty properties
is at its lowest level for a number of years.
Care homes performance has been impacted
during the year by those locations earmarked
for disposal; as part of the Anchor strategy to
exit from the provision of nursing care, three
such homes were disposed during the year
at a financial loss.
Tenant Lai Tat Lillywhite (May) with family members Nicola Lillywhite,
Jaya and Mei Mei Lillywhite (left to right)
Financial review
A summary of Anchor’s financial results, from all activities, over the past five years is set out below:
2014
Total
£m
Year to 31 March
Turnover
2013
Total
£m
2012*
Total
£m
2011
Total
£m
2010
Total
£m
265.8
264.9
267.5
280.8
286.5
Operating surplus before
exceptional items
18.3
18.1
25.4
19.4
21.0
Surplus/(deficit) for the year
12.1
21.8
22.2
10.3
7.8
*In 2012, turnover and operating deficit relating to discontinued operations were £3.7m and £(0.1m) respectively and related to the home care service.
Tenants from St Clements Court, Wigan, planting seeds as part of Anchor's Bee Friendly campaign
For year ending 31 March 2014
26
Turnover
Operating surplus
In the year to 31 March 2014, turnover remained
static at £265.8m (2013: £264.9m). The main
area of focus for the business continues to
be retirement housing lettings of £134.9m
(2013: £128.6m) and residential care homes
of £121.9m (2013: £119.2m), with turnover
from other activities, including leasehold sales,
being £9.0m (2013: £17.1m).
Anchor’s surplus was £18.3m (2013: £18.1m).
Members of Anchor's Lesbian, Gay, Bisexual
and Trans (LGBT) customer and colleague group
Retirement housing surplus increased by £3.4m to
£29.7m (2013: £26.3m), with the main contributors
being lower void levels, higher weekly rents, and
savings on utility costs as a result of the recent
milder winter.
Residential care homes operating surplus,
of £0.2m, decreased from last year (2013: £1.6m)
due largely to the performance of homes
earmarked for disposal.
Expenditure on major works to properties was
£47.1m (2013: £42.4m). The Income and Expenditure
Account incurred a higher charge than the previous
year of £12.6m (2013: £11.8m) and also a higher
value was capitalised: £34.5m (2013: £30.6m).
There were four retirement housing scheme
transfers during the year (2013: 14) and three
nursing home transfers (2013: nil).
Balance sheet performance
A summary of Anchor’s balance sheet over the past five years is set out below:
At 31 March
Goodwill
2014
£m
2013
£m
2012
£m
2011
£m
2010
£m
0.1
0.1
0.2
0.2
0.4
915.3
887.7
891.2
888.0
897.0
Social Housing Grant
(516.0)
(520.2)
(525.0)
(543.8)
(550.5)
Other capital grants
(43.8)
(44.6)
(47.7)
(53.0)
(54.3)
Housing properties – net book value
355.5
322.9
318.5
291.2
292.2
Other tangible fixed assets
4.3
2.6
1.7
4.4
5.3
Investments
3.1
3.4
2.9
2.7
1.9
62.8
92.9
81.3
64.9
52.0
425.8
421.9
404.6
363.4
351.8
Housing properties at cost less depreciation
Net current assets
Total assets less current liabilities
Anchor Trust Annual Report & Financial Statements
27
At 31 March 2014, Anchor’s total assets less
current liabilities increased to £425.8m (2013:
£421.9m), of which £249.0m was represented
by accumulated Income and Expenditure Reserve
(2013: £238.2m). The Income and Expenditure
Reserve increased by £12.1m from the surplus
generated during the year and reduced by
£1.3m from an actuarial loss following the
annual valuation (performed in accordance with
Financial Reporting Standard 17) of Anchor’s
defined benefit pension scheme.
Continuing investment in our housing properties
and construction of new care homes and other
developments resulted in the net book value
of housing properties increasing to £355.5m
(2013: £322.9m).
Within net current assets, Anchor’s stock of
housing for sale analysed in note 16 of the
Financial Statements, increased to £13.1m
(2013: £2.6m). This increase is attributable
to new build properties.
Cash and short term deposits decreased to
£71.3m (2013: £93.6m), mainly due to investment
in new developments.
The disposal of housing schemes resulted in
the attributable Social Housing Grant moving into
the total Recycled Capital Grant Fund, increasing
the fund’s balance to £13.2m (2013: £10.3m),
shown in note 21 of the Financial Statements.
Cash flow
Gardener Joseph Jeyarajan and resident Robert Woolgar
As shown in note 29.3 of the Financial Statements,
£62.1m (2013: £42.7m) of cash was used to
develop housing properties, an increase of £19.4m.
Housing fixed assets disposal proceeds were
£3.5m (2013: £18.4m).
Cash at bank was £46.8m (2013: £66.2m), a net
decrease in cash of £19.4m (2013: increase of £35.7m).
Investment in new
developments
At 31 March 2014, development costs of
£27.8m (2013: £11.1m) were added to
fixed assets – properties under construction.
The net movement in operating cash flow for
the year was an inflow of £46.4m (2013: £41.8m).
The movement is fully analysed in note 29.1
of the Financial Statements.
Programmes commenced at six locations:
two retirement villages, three care homes and
one assisted living development.
As shown in note 29.1 of the Financial Statements,
this cash flow was generated from an operating
surplus of £18.3m (2013: £18.1m) and, after
allowing for depreciation and other non-cash
expenditure, was reduced by a £4.6m (2013:
£4.6m) payment towards Anchor’s pension
scheme deficit and increased working capital.
Anchor continues to seek suitable sites on which
to build care homes, retirement villages and
assisted living housing schemes which meet the
needs of our customers now and in the future,
and a number of such sites are progressing
through various stages of property development
and construction.
For year ending 31 March 2014
28
Pensions
The Anchor Trust Final Salary Pension Scheme was
closed on 1 April 2011 to further contributions and
no new entrants have been admitted since 2003.
The service costs after finance income were £0.1m
(2013: £0.1m credit). The actuarial loss was £1.3m
(2013: £7.5m). Anchor had previously agreed with
the trustees of the scheme to make additional
payments towards the pension deficit, which
amounted to £4.6m (2013: £4.6m) after costs
in this financial year, and will be £5.1m (before
costs) increasing by 3.0 per cent per annum for
each of the next nine years.
The actuarial loss and service costs partially offset
by finance income and the additional payment,
described above, resulted in the value of the pension
scheme liability on a Financial Reporting Standard
17 (FRS17) basis decreasing by £3.6m (2013:
increasing by £2.4m), being a £3.4m increase in
the scheme’s assets and a £0.2m decrease in the
scheme’s liabilities. At the year end, the scheme
had an FRS17 deficit of £35.7m (2013: £39.2m).
Treasury
Anchor’s treasury activities are managed to ensure
sufficient cash is in place to fund operations and
to reduce the impact of adverse movements in
interest rates and the financial markets.
Treasury activities are carried out in accordance with
a Board-approved treasury management policy and
supporting procedures. A treasury strategy is in place
to support delivery of the Group’s objectives and
its operational and long term plans are supported
by financial budgets and forecasts. The treasury
strategy is approved annually by the Board.
Cash flow requirements are monitored through a
rolling forecasting process. Anchor’s policy is to
minimise cash held by repaying debt as early as
practicable, while ensuring sufficient access to
funding to cover investment and development plans.
This is achieved by the use of forecasts covering
short, medium and long-term cash flows and the use
of short-term investment and revolving facilities.
During 2014, surplus cash was held predominantly
in a cash liquidity fund. A total of 50 per cent of
drawn borrowings were at fixed rates of interest
at the year end (2013: 50 per cent) for an
average period of 12 years (2013: 13 years).
Anchor Trust Annual Report & Financial Statements
Anchor has access to undrawn committed
borrowing facilities of £73.6m (2013: £73.6m).
These facilities together with substantial unutilised
security on the Balance Sheet ensure Anchor
remains in a strong position to fund future
growth plans and investment opportunities.
Net debt at 31 March 2014 was £51.9m (2013:
£30.0m), as cash generated from operations was used
to finance capital expenditure and working capital.
Anchor remains in compliance with its financial
covenants, which are primarily based on interest
cover and gearing. Covenants have been met
with considerable headroom, due to low interest
rates payable (as LIBOR has decreased) and a
strong trading performance.
Tax and legal structure
Anchor has a non-charitable trading subsidiary
company, Anchor 2020 Limited, which is used to
procure design and construction services for the
Group and manage the professional fees on new
development projects.
Anchor has a second non-charitable trading subsidiary
company, Anchor Lifestyle Developments Limited,
which is used to operate non-charitable services.
Surpluses from these subsidiaries are donated to
Anchor Trust, or to the benefit of Anchor Trust’s
charitable activities.
Statement of Compliance
In preparing this Operating and Financial Review,
the Board has followed the principles set out in the
Statement of Recommended Practice: Accounting
by registered social housing providers (SORP).
In approving the Operating and Financial Review,
the directors are also approving the Strategic
Report in their capacity as directors of the company.
The Operating and Financial Review and the
Strategic Report were approved by the Board
on 22 July 2014 and signed on its behalf by:
Pamela Chesters CBE
Chairman
Stephen Jack OBE
Director
3
Section 3
Corporate
Governance
Report
29
30
Corporate Governance Report
Overview of Anchor’s
corporate governance
The Board and
its committees
Anchor is a private company limited by guarantee.
Anchor has no shareholders and all of its surpluses
are reinvested back into the business. Since 2010
all housing associations are required to be
governed in accordance with an appropriate code
of governance and Anchor has elected to be
governed by the Financial Reporting Council
(FRC) UK Corporate Governance Code 2012
(UK Code). A self-assessment review of
compliance with the UK Code was undertaken and
concluded that throughout the accounting period
Anchor had complied with the key provisions of
the UK Code, while acknowledging that provisions
A4.3, B3.3 and D1.1 are not applicable, and B6.2,
B7.1, B7.2 and D2.4 address the circumstances
of listed companies and so are not appropriate
to Anchor’s affairs. Additionally, Anchor does
not produce half-yearly financial statements and
therefore cannot fully comply with provision C1.3.
All members of the Board are non-executive directors.
As at 31 March 2014 the Board comprised
six members led by Chair Pamela Chesters.
Aman Dalvi, who was previously the Chairman,
retired in September 2013 at the end of his
term, and Lesley James, Chair of the Executive
Remuneration Committee, retired on 31 March
2014. During the year Stephen Jack, who also
chairs A&RC, was appointed as Vice Chair and
Senior Independent Director.
Anchor’s Board is entirely made up of NonExecutive Directors who normally serve for three
year terms, subject to a maximum of three terms.
In 2013/14, Anchor’s Chairman, Aman Dalvi,
stood down having completed three terms of
office as director.
The Board has the following committees:
Audit & Risk Committee (A&RC), Executive
Remuneration and Nomination. Throughout
2013/14 the Customer Services Committee
also operated as a committee of the Board
but by mutual consent it was agreed that
after 31 March 2014, it would operate as a
stand-alone committee as opposed to a
committee of Anchor’s Board.
Anchor is also monitored and supervised
by external regulators including the Homes
& Communities Agency, the Care Quality
Commission and the Charities Commission.
A4.3 Unresolved concerns documented in Board Minutes
B3.3 No more than one non executive directorship in a FTSE 100 company
B6.2 Evaluation of the Board of FTSE 350 companies
B7.1 Annual election by shareholders of directors of FTSE 350 companies
B7.2 Papers to shareholders accompanying a resolution to elect non
executive directors
Anchor Trust Annual Report & Financial Statements
The Board controls Anchor’s strategic direction
and reviews its operating and financial position.
In accordance with the UK Code, there is a formal
schedule of matters reserved specifically to the
Board, which ensures it takes all major strategy,
governance, financial planning, investment and
policy decisions. The appointment of the Chief
Executive and the approval of standing orders and
delegations of authority are all matters reserved to
the Board.
The Board undertakes an annual review of its
schedule of matters reserved and the terms of
reference for its committees to ensure that these
documents remain in line with good practice.
During the financial year, an internal evaluation of
the effectiveness of the Board, and the Board’s
committees, was undertaken which was facilitated
by Anchor’s Company Secretary who has significant
insight into both the day-to-day and strategic
workings of the Board. The evaluation concluded
that Anchor has an effective governance structure
with a good range of skills and expertise.
The Board’s governance framework is designed
to encourage all Board members to bring an
independent judgement to bear on issues of
strategy, performance, resources (including key
appointments) and standards of conduct.
C1.3 Annual and half yearly financial statements
D1.1 Performance related remuneration for executive directors
D2.4 Shareholder approval of long term incentive schemes
31
Board meetings
The Board meets regularly throughout the year.
Historically, meetings have occurred quarterly with
an additional strategy day. In December 2013 it was
decided to increase the frequency of meeting so
that meetings now take place monthly except for
Board
(7 meetings)
Aman Dalvi*
Pam Chesters
Paul Doona
Angela Horsman
Stephen Jack
Lesley James
Rima Makarem
Chris Wood
the month of August. At the end of each meeting,
sufficient time is given for the Chair to meet privately
with the Senior Independent Director and with the
other Board members.
Member attendance at Board and committee
meetings was as follows:
A&RC
(4 meetings)
2 /2
7/ 7
5/ 7
6/ 7
7/ 7
5/ 7
5/ 7
6/ 7
4/ 4
4/ 4
3/ 4
3/ 4
Executive
Remuneration
Committee
(3 meetings)
Nominations
Committee
(2 meetings)
1/ 1
2/ 2
1/ 3
3 /3
3/3
2 /3
2 /3
1/ 3
1/ 1
2/2
1/ 2
2 /2
2 /2
1/ 2
2 /2
1/ 2
Customer
Services
Committee
(3 meetings)
1/ 1
2 /3
3/3
* Retired September 2013
In addition to attending Board meetings each member
of the Board undertakes regular visits to Anchor
locations during the year and shares their findings
with the rest of the Board and the Chief Executive.
The performance of each Board Director is
evaluated by the Chair. The Senior Independent
Director led an evaluation of the Chair.
The Board reviews the independence of its directors
as part of the annual Board effectiveness review.
The directors bring a strong independent oversight
to the Board and following this year’s review the
Board considers that all of the directors continue to
demonstrate their independence.
The Board has in place formal procedures for
the management of its meetings which require
the Board to be supplied with timely and relevant
information to enable it to discharge its duties.
As part of the Board’s evaluation of the effectiveness
of its procedures the Board considered these and
determined that they were satisfactory.
The Board composition is kept under review
and when a new appointment is to be made,
consideration is given to the experience which a
potential new member could add to the existing mix.
A transparent recruitment process is used with advice
from external consultants if required. Appointments to
the Board are approved by the full Board.
continued on p34 Ò
For year ending 31 March 2014
32
New
opportunities
Alacia Elliott, 83, lives with her husband at
Sandyford Court in Jesmond. Their daughter
told them about the estate seven years ago and
shortly after they moved into their bungalow.
It was an ideal place to retire to – very close to
their family and the shops.
After going along to Age Concern’s fitness
classes Alacia was offered the opportunity to
train to become a fitness instructor. At college
she learnt about exercise, nutrition and diet,
and got the certificates she needed to teach.
Alacia now teaches a fitness class at Sandyford
Court which has proved so successful residents
from local Anchor schemes also join in.
She said: “Exercise keeps you active and fit
– it helps you walk better and helps with your
balance. It also helps anyone with arthritis.
Exercise is movement while relaxing your mind
to music. It is very social – we have the class
and then tea and coffee afterwards.”
Alacia Elliott
Sandyford Court, Jesmond
33
“We like living here at
Sandyford Court as it’s a
nice community with people
of the same age. We still have
our independence and we
don’t feel isolated. We are
on the committee here and
take part in activities.”
34
Audit & Risk Committee
(A&RC)
The committee comprises at least three Directors,
two of whom constitute a quorum. Appointments to
A&RC are for an initial period of three years and are
extendable for two further three year periods.
Stephen Jack was appointed as Chairman of
A&RC in June 2012 and the other members are
Paul Doona, Chris Wood and Rima Makarem.
The committee structure requires at least one member
of A&RC to have significant, recent and relevant
financial experience. The Board is satisfied that
Stephen Jack and Paul Doona fulfil this requirement.
The primary role of the A&RC is to provide
assurance to the Board on:

The integrity of the financial reporting and
the audit process.

The maintenance of a sound system of
internal control and risk management.
Meetings and attendance
The committee met on four occasions timed to
coincide with the internal and external financial
reporting cycles of Anchor.
audit team employed directly by the company.
As a consequence, a small team headed up by a new
Head of Internal Audit has been recruited and the
agreement with PwC came to an end on 31 March.
In addition, during the year the
committee reviewed:
 The internal audit plan for the year and
the achievement of that plan.
 The adequacy of management’s
response to the matters raised during
the year in reports from the internal
auditors, including the implementation
of recommendations made.
 Reports on the adequacy and
effectiveness of Anchor’s internal control
and risk management procedures.
 The Excellence Tool which measures
compliance with Anchor’s standards
and policies within Operations.
 The approach taken by a number of
key compliance functions within
the risk management framework.
External audit
The Chief Executive, members of the Executive
Management Board and senior representatives
of the internal and external auditors attended
meetings by invitation. At each meeting there was
an opportunity for the internal and external auditors
to discuss matters with the committee without any
members of the executive management team
being present.
The committee recommended the reappointment
of KPMG LLP for 2013/14. The committee are
confident of the independence and the objectivity
it brings to the effectiveness of the external audit
process. This is displayed through KPMG’s robust
internal processes, its continuing challenge, its
focused reporting and its discussions with both
management and the committee.
Report on the committee’s
activities for the financial
year 2014
During the year the auditors were engaged to
provide a range of services to Anchor apart from
audit activity, including advice on taxation and
pensions. Each appointment was made taking into
account the requirements of the Board’s policy on
the use of auditors for non-audit work to ensure
the auditor’s objectivity and independence was
safeguarded. The Board policy defines the nonaudit services that are permitted to be carried out
by auditors. The committee receives annual reports
from the Chief Financial Officer describing the nonaudit work undertaken by auditors.
Internal audit
Last year the committee’s activities involved a
strategic reappraisal of the provision of internal audit
services by Price Waterhouse Coopers LLP (PwC)
The committee concluded that internal audit could be
more effectively undertaken by a dedicated internal
Anchor Trust Annual Report & Financial Statements
35
Tenants and colleagues at St Christopher's House, Morpeth enjoying their recently renovated garden,
which was paid for with money from Anchor's Legacy Fund.
In accordance with its remit, the committee
reviewed and approved:
 The auditor’s plans for the audit of Anchor’s
Financial Statements 2013/14.
 The terms of engagement for the
audit and proposed audit fee and
associated expenses.
 The content of the formal audit
letter provided by the auditors and
management’s response, including
major issues that arose on the audit
and their resolution.
Financial Reporting
The Directors consider that this Annual Report
and Financial Statements taken as a whole
is fair, balanced and understandable, and
provides the information necessary for the
members to assess the Group’s performance,
business model and strategy.
During the year the committee reviewed a wide
range of accounting and financial issues including
the recoverable amount of housing properties
and the annual financial statements prior to
submission to the Board.
Whistle-blowing
Anchor’s whistle-blowing policy sets out the
arrangements for colleagues to raise concerns
or complaints regarding the risk issues, internal
controls and related matters with relevant line
management or senior company executives.
These matters are advised to internal audit for
consideration and reported to the committee
as appropriate. Any matters considered sufficiently
significant by the committee are brought to the
attention of the Board, which decides how the
matter will be handled, including whether or not it
will be referred to an outside agency.
The A&RC regularly reviews the arrangements
in place for handling whistle-blowing cases
to ensure that they provide for the proportionate
and independent investigation of issues
raised and for appropriate follow-up action.
Fraud
The committee receives regular reports of any
fraudulent activity perpetrated or attempted against
the company and its customers. Any matters
considered sufficiently significant by the committee
are brought to the attention of the Board.
The A&RC reviews the arrangements in place for
dealing with fraudulent activity to ensure that they
are proportionate and also that all appropriate
external agencies are properly notified.
For year ending 31 March 2014
36
Assurance
On behalf of the Board, the A&RC examines
the effectiveness of Anchor’s:
 System of internal control, covering all
material controls, including financial,
operational and compliance controls,
primarily through reviewing the internal
audit plan and reviewing its findings.
 Management of risk by reviewing
evidence of risk assessment activity.
 Action taken or to be taken to manage
critical risks or to remedy any control
failings or weaknesses identified.
Executive Remuneration
Committee
The Executive Remuneration Committee consists of
at least three Directors (all Non-Executive Directors
of the Board), with a quorum of two. Membership is
Tenants Jean Clark, Ian Raine and Jennifer Stephens
Anchor Trust Annual Report & Financial Statements
reviewed annually by the Chairman of the committee.
The committee met three times during the year.
Lesley James chaired the committee and
stepped down with effect from 31 March 2014.
Stephen Jack has taken over the Chair on an
interim basis. Throughout the 2013/14 year
its members have been Aman Dalvi (up to 30
September 2013), Paul Doona, Angela Horsman,
Stephen Jack, Rima Makarem and Chris Wood,
with Pamela Chesters joining the Board on
1 April 2013. No person other than the members
of the committee is entitled to be present at
meetings but others may be invited by the
committee to attend. Neither the Company
Secretary nor any members of the Executive
Management Board are present when the
committee considers matters relating to them.
The Executive Remuneration Committee is
responsible for determining the pay and benefits
and contractual arrangements for the Executive
Management Board. The committee is aware that
the subject of executive pay continues to be an
area of focus for the media and the wider public
and is aware of the sensitivities regarding executive
pay at a time when public expenditure continues
37
to be under pressure. The committee’s aims are to
develop and recommend remuneration strategies
that drive performance and reward it appropriately.
Anchor’s long-term remuneration strategy is to
attract and retain talented individuals and ensure
that they are focused on delivering strategic
priorities within a framework aligned to
stakeholders’ interests.
The committee has written terms of reference
which are reviewed annually and any proposed
changes are referred to the Board for approval.
The committee has an executive remuneration
policy that sets out the objectives and the approach
for the work of the committee. It states, “the
objective of Anchor’s remuneration policy is to attract,
retain and motivate high calibre senior executives
through competitive pay arrangements which are
also in the best interests of all stakeholders”.
Total remuneration is benchmarked against a
comparator group reflecting the market in which
Anchor operates. Remuneration is targeted at
a median position, moving to upper quartile for
exceptional performance. It is assessed through
personal objectives aligned to business key
performance indicators, measured through the
annual performance management process.
In 2013/14 year the remuneration committee
approved a bonus plan for senior executives linked
to the achievement of key business objectives.
The key business objectives are measured through
the delivery of Key Performance Indicators (KPIs),
and have been developed using a balanced score
card approach, focusing on People, Finance,
Compliance & Service Delivery and Customer.
The KPIs were weighted within the total bonus
payment, and targets in each category benchmarked
to ensure excellence at upper quartile. The plan
also introduced a multiplier for the achievement of
personal performance measures ranging from a
multiplier of 0 to 2, to build personal accountability
and performance delivery into the plan.
Executive Directors may hold positions in other
companies as non-executive directors and retain
the fees. Jane Ashcroft is a non-executive director
of Dignity plc, and in accordance with Anchor
policy she retained fees for the year of £44,000
(2013: £41,000).
The committee also ensures that executive
remuneration is aligned with the remuneration
philosophy for all Anchor colleagues. It is
Resident Doreen Haigh and Care Assistant Samantha Hill
underpinned by a stated set of common reward
principles: performance delivery, alignment to
strategy, competitive and motivating, equitable
and fair, and value for money. The committee
endorsed the Executive Management Board’s
decision that from 1 April 2013 all Anchor
colleagues should be paid above the National
Minimum Wage, with a further commitment to
progress and align Level 2 Care Assistants and
Activity Co-ordinators to the Living Wage.
This supports Anchor’s objective of being an
employer of choice and cements Anchor’s
commitment to ensure customers receive high
quality care from a motivated workforce.
The committee has access to such information
and advice both from within Anchor and externally
at the expense of Anchor as it deems necessary.
During the year the committee sought advice from
New Bridge Street consultants. The committee also
seeks internal support from the Chair, Company
Secretary, Director of Human Resources and Head
of Reward as required.
For year ending 31 March 2014
38
Nominations Committee
The committee consists of at least three Directors
with a quorum of two. Membership is reviewed
annually by the committee Chair.
Lesley James chaired the committee until her
retirement at the end of the year. Pamela Chesters
will take over on an interim basis until a new
appointment to replace Lesley James is made.
The committee has written terms of reference which
it reviews regularly and any proposed changes are
referred to the Board for approval.
The committee noted that following the resignation
of Lesley James, Anchor’s Board comprises six
members, of whom three are women, and therefore
complies with the ‘Women on Boards report for
FTSE 100 companies’ issued by Lord Davies in
February 2011.
In the forthcoming year the action plan is to:
 Continue to ensure the non-executive
directors on the Board have the
appropriate skills and range of experience.
 Continue to support the succession
of members of the Executive
Management Board.
 Review the size of the Board to ensure
In carrying out its activities the committee has
access to such information and advice both from
within Anchor and externally at the expense of
Anchor as it deems necessary. Recruitment services
in relation to the appointments of Tim Seal and
Dominic Hayes as members of Anchor’s Executive
has no other connections with Anchor.
Customer Services
Committee
chairs of the eight regional customer forums.
Members are appointed for a period of three years
and appointments can be renewed thereafter for a
maximum period of six years. The CSC maintains
close links with the Board. Anchor’s chair together
with at least one other non-executive director
together with members of Anchor’s Executive
Management Board endeavour to attend all
meetings of the CSC.
The committee has clear written terms of
reference, which include:
 Shaping housing management service
standards and service delivery.
 Driving continuous improvements in the
services provided to customers.
 Scrutinising performance in the services
provided to customers.
 Agreeing the content of the annual
performance report made available
to all rental customers.
Last year Anchor encouraged the CSC to widen
its remit and include representation from Anchor’s
care home and leasehold customers. The CSC
has embraced this challenge and is becoming an
increasingly important conduit through which the
views of care home and leasehold customers
are expressed.
Following discussions with the CSC, the Board
and the CSC have agreed that with effect from 31
March 2014 the CSC will no longer be a committee
of Anchor’s Board, but members of the Board will
continue to attend CSC meetings and the Board
will also continue to receive a quarterly report from
the CSC.
The Board would like to acknowledge and place
on record their thanks to Mr Derek Stone, Chair of
the East Midlands and Anglia customer forum, and
Mr Thomas Tuff, Chair of Cumbria and North East
customer forum, who passed away during the year.
Customer Involvement
Anchor is committed to supporting and developing
a strong Customer Services Committee (CSC).
Members of the CSC are the chairs and deputy
Anchor Trust Annual Report & Financial Statements
continued on p40 
39
Something different
“The thought of going
into accommodation
aimed at older people did
make us hesitate at first.
But Anchor offered us
something different.”
Angie and Stephen are both in their 50s and still
working. They were looking for their next home
when they enquired about an Anchor property.
“We were thinking about the long term and wanted
to find a new home that we could see ourselves
living in for the rest of our lives,” says Angie.
Angie and Stephen Thompson,
with Scheme Manager Jamar Hesford
Guardian Court, York
40
Anchor’s approach to risk management
The Board has overall accountability for ensuring
that risk is effectively managed across Anchor
and, on behalf of the Board, the A&RC reviews the
effectiveness of the risk management process.
A review of the principal risks and uncertainties is
included in the Operating and Financial Review
including Strategic Report.
The Board
The Board recognises its responsibility for Anchor’s
system of internal control and reviewing its
effectiveness. During the year, the Board has
continued to debate and develop its understanding
of risk, risk appetite and tolerance. Protecting the
business from operational and reputational risk is an
essential part of the Board’s role. With the support
of the A&RC, the Board has continued to drive a
better understanding of the risks Anchor faces.
The Board is satisfied that the system of internal
control has been operating effectively for the year
and there are no incidents of weakness leading to
material loss, contingency or uncertainty that require
separate disclosure in the Financial Statements.
Audit & Risk Committee (A&RC)
The A&RC has reviewed its terms of reference
during the year to ensure that it continues to provide
assurance to the Board on Anchor’s financial
reporting, internal control and risk management,
internal audit arrangements and external audit
arrangements.
The A&RC has monitored the integrity of the
Financial Statements and reviewed the actions and
judgements of management in their preparation
before they were submitted to the Board for approval.
The A&RC pays particular attention to strategic
processes for risk management, internal control
and governance, critical accounting policies
and practices.
The A&RC has reviewed the effectiveness of the
internal control systems and is satisfied that the
policies in relation to financial control, delegated
authority, treasury management, fraud detection
and reporting, internal audit, project management,
strategic planning, business planning, asset
management and performance reporting contribute
to an effective control environment.
Anchor Trust Annual Report & Financial Statements
The A&RC has also reviewed the effectiveness
of Anchor’s risk management systems. In addition
to reports from the internal auditors, the A&RC
has also considered the company’s internal
processes for identifying, evaluating and managing
the significant risks it faces.
The A&RC discussed the external audit strategy
with KPMG at the start of its audit planning
process. KPMG identified its assessment of the
key risks for the purposes of the audit and the
scope of their work.
For 2014, these risks were valuation of
pension liabilities and capital expenditure on
development activity. More detail is set out in
KPMG’s report on pages 48 to 50.
The A&RC regularly reviews incidents of
whistle-blowing during the year and continues
to have oversight of this.
In addition to the above, the A&RC has considered
its own effectiveness through a self-assessment
in which each member has participated.
The committee concluded that during the year
the arrangements, structures and processes in
place had enabled it to undertake an appropriate
review of Anchor’s financial reporting, internal
control and risk management, internal audit
arrangements and external audit arrangements.
Executive Management Board
The Executive Management Board is responsible
for the operation of the internal control environment
within Anchor.
Risk management procedures are applied
throughout Anchor to support the achievement of
the organisation’s objectives with key strategic risks
and the action taken to mitigate them reported to
A&RC and the Board.
The Executive Management Board has been
diligent in taking action to mitigate risk where this
has been needed. Where improvements in internal
control have been needed, steps have been taken
to ensure that systems and controls are improved
and that material error or misstatement has
not occurred.
4
41
Section 4
Board, Directors
and Advisors
42
Board, Directors
and Advisors
Patron
Registered Office
HRH Princess Alexandra
2nd Floor
25 Bedford Street
Members of the Board
Chairman
Pamela Chesters CBE
Members *
Paul Doona
Angela Horsman
London
WC2E 9ES
External Auditors
KPMG LLP
Stephen Jack OBE
Bankers
Dr Rima Makarem
Lloyds Banking Group PLC
Chris Wood
Executive Management
Board**
Chief Executive
Jane Ashcroft CBE
Chief Financial Officer
David Springthorpe (Resigned 31 May 2014)
Members
David Edwards
Investment Managers
Schroder Investment Management Limited
Solicitors
Eversheds LLP
Treasury advisors
Traderisks Limited
Dominic Hayes (Appointed 27 January 2014)
Sue Ingrouille
Howard Nankivell
Tim Seal (Appointed 16 December 2013)
* Members are classified as Directors for the purposes of the Companies Act 2006
** Members of the Executive Board are not classified as Directors for the purposes of the
Companies Act 2006
Anchor Trust Annual Report & Financial Statements
5
43
Section 5
Directors’ report
44
Directors’
Report
Legal status
Anchor Trust is a company limited by guarantee
(number 3147851). It is registered under the
Housing Act 1996 (registration number
LH4095) and is a charity (number 1052183).
Review of the business
A review of the business is provided in the
statement of the Chair and Chief Executive and
the Operating and Financial Review including
Strategic Report.
Directors
The Directors at 31 March 2014 and the date of
approval of the Financial Statements are those listed
on page 42.
Employment
– equality and diversity
Our people strategy aims to cultivate motivated and
supported colleagues who understand how they
contribute to the organisation. Anchor consults with
employees, who are called colleagues, in a range of
ways, both formally and informally.
Anchor strives to comply with employment
legislation and seeks to ensure that we employ
a diverse and appropriately skilled workforce.
Applications for employment by disabled persons
are always fully considered, bearing in mind the
aptitudes of the individuals concerned. In the event
of colleagues becoming disabled, every effort is
made to ensure their employment within Anchor is
continued and any necessary adaptations to their
working environment or routine are made.
Health and safety
Anchor recognises the importance of managing
health and safety risks in order to keep customers
Anchor Trust Annual Report & Financial Statements
and colleagues safe. Anchor’s health and safety
performance continues to be satisfactory with
health and safety measures being included
in the key performance indicators.
Donations
Neither Anchor nor any of its subsidiaries made
any charitable donations or political donations, or
incurred any political expenditure during the year.
Creditor
payment policy
It is Anchor’s policy to settle the terms of payment
with any suppliers when agreeing the terms of
each transaction; to ensure those suppliers are
made aware of the terms of payment; and to abide
by them. Generally Anchor pays its creditors within
30 days. At the year end, there were 23 days (2013:
22 days) worth of purchases in trade creditors.
Post balance sheet events
There were no post balance sheet events that
require disclosure in the Financial Statements.
Going concern
After making enquiries and examining major
areas which could give rise to significant financial
exposure, the Directors are satisfied that no material
or significant exposures exist other than as reflected
in these Financial Statements and that Anchor has
adequate resources to continue its operations for
the foreseeable future. For this reason they continue
to adopt the going concern basis in preparing the
Financial Statements.
Auditor
KPMG LLP has expressed its willingness to
continue in office as auditor to Anchor. A resolution
proposing its reappointment will be made at the
Annual General Meeting.
45
Disclosure of
information to auditors
The Directors who held office at the date of approval
of this Directors’ Report confirm that, so far as
they are each aware, there is no relevant audit
information (as defined in Section 418(2) of the
Companies Act 2006) of which the company’s
auditors are unaware; and each Director has
taken all the steps that they ought to have taken
as a Director to make themselves aware of any
relevant audit information and to establish that the
company’s auditors are aware of that information.
The Directors are responsible for keeping adequate
accounting records that are sufficient to show
and explain the company’s transactions and
disclose with reasonable accuracy at any time
the financial position of the company and enable
them to ensure that the Financial Statements
comply with the Companies Act 2006, the Housing
and Regeneration Act 2008 and the Accounting
Direction for Private Registered Providers of Social
Housing 2012. They have general responsibility for
taking such steps as are reasonably open to them
to safeguard the assets of the company and to
prevent and detect fraud and other irregularities.
Statement of Directors’
responsibilities in respect
of the Directors’ Report and
the Financial Statements
The Directors are responsible for the maintenance
and integrity of the corporate and financial
information included on the company’s website.
Legislation in the UK governing the preparation and
dissemination of Financial Statements may differ
from legislation in other jurisdictions.
The Directors are responsible for preparing the
Directors’ Report and the Financial Statements in
accordance with applicable law and regulations.
Company law requires the Directors to prepare
Financial Statements for each financial year.
Under that law they have elected to prepare the
Financial Statements in accordance with UK
Accounting Standards and applicable law
(UK Generally Accepted Accounting Practice).
Each director confirms that, so far as he/she is
aware, there is no relevant audit information of
which the Company’s auditors are unaware and that
each director has taken all the steps that he/she
ought to have taken as a director to make himself/
herself aware of any relevant audit information and
to establish that the Company’s auditors are aware
of that information.
By order of the Board.
Under company law, the Directors must not
approve the Financial Statements unless they are
satisfied that they give a true and fair view of the
state of affairs of the company and of the surplus or
deficit for that period. In preparing these Financial
Statements, the Directors are required to:
 Select suitable accounting policies and then
apply them consistently;
 Make judgements and estimates that are
reasonable and prudent; and
David Edwards
Company Secretary
and General Counsel
22 July 2014
 State whether applicable UK Accounting
Standards and Statements of Recommended
Practice have been followed, subject to any
material departures disclosed and explained
in the Financial Statements.
For year ending 31 March 2014
46 Time to relax
“Coming to West Hall has given me
a chance of living another life; I can’t
thank the staff enough for what they
have done to change my life.”
Eileen, 91, was living in a bungalow in Leeds and
wasn’t coping very well. Eileen had refused any
help and struggled with shopping. After having
respite care it was decided she’d benefit from
more help. The decision was made to move
Eileen into a care home near her son Martin who
lived in West Byfleet. They chose Anchor’s West
Hall and Eileen moved in November 2013.
Eileen said: “Moving to West Hall has made me
relax: I don’t feel lost anymore. At my home in
Leeds I felt alone with no one to talk to, but being
here has changed my life. I have made friends
and found a purpose to live a new life. I like
meeting new people from all different walks
of life, at home I wouldn’t speak to any of my
neighbours or friends.”
“Before I had no interest in taking part in
activities, but now my passion is the gardening
club, I also join in with tai chi and music for
health. West Hall recently had a visit from the Zoo
Lab which provides animal handling experiences
which I enjoyed thoroughly.”
Eileen’s son Martin has also noticed a change
in his mother. He said: “My mother is more
relaxed since living at West Hall, she seems more
confident. I chose West Hall as it provided lots of
space, and the staff were pleasant.”
Eileen Sampson
West Hall, West Byfleet, Surrey
6
47
Section 6
Independent
Auditor’s Report
48
Independent auditor’s report to the
members of Anchor Trust only
Opinions and conclusions
arising from our audit
1 Our opinion on the financial statements
is unmodified
We have audited the financial statements of
Anchor Trust for the year ended 31 March 2014
set out on pages 51 to 76. In our opinion the
financial statements:

give a true and fair view of the state of the
Group’s and of the Company’s affairs as at
31 March 2014 and of the Group’s surplus
for the year then ended;

have been properly prepared in accordance
with UK Accounting Standards; and

have been prepared in accordance with the
requirements of the Companies Act 2006,
the Housing and Regeneration Act 2008
and the Accounting Direction for Private
Registered Providers of Social Housing 2012.
2 Our assessment of risks of material
misstatement
In arriving at our audit opinion above on the financial
statements the risk of material misstatement that
had the greatest effect on our audit was as follows:
Recoverable amount of housing properties
(Housing properties under construction £47m,
Properties for resale £13m)
Refer to page 29 (Audit & Risk Committee
section of the Corporate Governance Report),
page 56 (accounting policy) and pages 52 to 76
(financial disclosures)

The risk – Housing Properties represent 76 per
cent of the Group’s total assets and are split
between Housing Properties held for rental and
Properties held for resale. We do not consider
Anchor Trust Annual Report & Financial Statements
there to be a significant risk regarding the
carrying value of the Group’s housing properties
including those properties classified as Housing
Properties under Construction and Properties
for resale. However, due to their materiality in the
context of the financial statements as a whole
the recoverability of the Housing Properties
under Construction and Properties for resale is
considered to be the area which had the greatest
effect on our overall audit strategy and allocation
of resources in planning and completing
our audit.
For Properties for resale there is a risk that
net realisable value falls short of the carrying
value. Although market conditions have started
to improve, there are still some areas where
downward pressure on property values remains;
and for Housing Properties under Construction
there is a risk that any costs overruns could lead
to potential impairment.

Our response – Our audit procedures included,
among others:
–– Inspecting
the Group’s assessment
of property valuations and impairment
calculations.
–– For
Housing properties under Construction
we compared actual spend, plus forecast
costs to complete, to the original Board
approved scheme appraisal (the forecast
income and expenditure of a new build site)
to consider whether the total expected costs
indicated potential impairment. We obtained
and corroborated the assumptions used to
derive the expected recoverable amount to
third party data sources.
–– For
Properties for resale at year end we
compared actual spend plus forecast costs to
completion for work in progress to expected
sales proceeds.
49
3 Our application of materiality and an
overview of the scope of our audit
The materiality for the Group financial statements
as a whole was set at £5.3m. This has been
determined with reference to a benchmark of
Group total turnover (of which it represents two per
cent), which we consider to be one of the principal
considerations for members of the Company in
assessing the financial performance of the Group.
We agreed with the Audit & Risk Committee
to report to it all corrected and uncorrected
misstatements we identified through our audit with
a value in excess of £260,000, in addition to other
audit misstatements below that threshold that we
believe warranted reporting on qualitative grounds.
4 Our opinion on other matter prescribed
by the Companies Act 2006 is unmodified
In our opinion the information given in the
Chairman’s and Chief Executive’s Statement,
Operating and Financial Review, including the
Strategic Report, Corporate Governance Report,
and Director’s Report for the financial year for which
the financial statements are prepared is consistent
with the financial statements.
5 We have nothing to report in respect of
the matters on which we are required to
report by exception
Under ISAs (UK and Ireland) we are required to
report to you if, based on the knowledge we
acquired during our audit, we have identified other
information in the annual report that contains a
material inconsistency with either that knowledge
or the financial statements, a material misstatement
of fact, or that is otherwise misleading.
In particular we are required to report to you if:

we have identified material inconsistencies
between the knowledge we acquired
during our audit and the Directors’
statement that they consider that the
annual report and financial statements
taken as a whole is fair, balanced and
understandable and provides the
information necessary for the members
to assess the Group’s performance,
business model and strategy; or

the Audit & Risk Committee section
of the Corporate Governance Report
does not appropriately address matters
communicated by us to the Audit
& Risk Committee.
Under the Companies Act 2006 we are required to
report to you if, in our opinion:

adequate accounting records have
not been kept by the parent company,
or returns adequate for our audit have not
been received from branches not visited
by us; or

the parent company financial statements
are not in agreement with the accounting
records and returns; or

certain disclosures of directors’
remuneration specified by law are
not made; or

we have not received all the information
and explanations we need for our audit.
We have nothing to report in respect of the
above responsibilities.
For year ending 31 March 2014
50
Respective responsibilities
of the directors and auditor
As explained more fully in the Statement of
Directors’ Responsibilities set out on page 45,
the directors are responsible for the preparation
of the financial statements and for being satisfied
that they give a true and fair view. Our responsibility
is to audit, and express an opinion on, the financial
statements in accordance with applicable law and
International Standards on Auditing (UK and Ireland).
Those standards require us to comply with the UK
Ethical Standards for Auditors.
Scope of an audit of financial
statements performed in
accordance with ISAs
(UK and Ireland)
A description of the scope of an audit of
financial statements is provided on the Financial
Reporting Council’s website at www.frc.org.
uk/auditscopeukprivate. This report is made
subject to important explanations regarding our
responsibilities, as published on our website at
www.kpmg.com/uk/auditscopeother2013,
which are incorporated into this report as if set
out in full and should be read to provide an
understanding of the purpose of this report,
the work we have undertaken and the basis
of our opinions.
Anchor Trust Annual Report & Financial Statements
The purpose of this report
and restrictions on its use
by persons other than the
Company’s members as
a body
This report is made solely to the Company’s
members, as a body, in accordance with section
128 of the Housing and Regeneration Act 2008
and Chapter 3 of Part 16 of the Companies
Act 2006. Our audit work has been undertaken
so that we might state to the Company’s members
those matters we are required to state to them in
an auditor’s report and for no other purpose. To the
fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the
Company and the Company’s members, as a
body, for our audit work, for this report, or for the
opinions we have formed.
Chris Wilson Senior Statutory Auditor for and
on behalf of KPMG LLP, Statutory Auditor
Chartered Accountants
Arlington Business Park
Theale
Reading
RG7 4SD
22 July 2014
51
Section 7
Financial
Statements
52

Consolidated Income
and Expenditure Account
for the year ended 31 March 2014
2013
£’000
2014
£’000
Note
Turnover
4
265,822
264,851
Operating costs
4
(247,521)
(246,742)
Operating surplus before exceptional items
4
18,301
18,109
Exceptional items
5
-
34
18,301
18,143
Operating surplus
(Deficit) / surplus on disposal of fixed assets
14
(1,560)
8,192
Interest receivable and other income
10
2,727
3,350
Interest payable and similar charges
11
(7,414)
(7,860)
12,054
21,825
Surplus for the year
Statement of total recognised surpluses and deficits
Note
Surplus for the year
Actuarial loss on pension fund
26
Total recognised surplus for the year
Note of historical cost surpluses and deficits
Note
Reported surplus for the year
Realised investment gains
Historical cost surplus for the year
15
2014
£’000
2013
£’000
12,054
21,825
(1,292)
(7,461)
10,762
14,364
2014
£’000
2013
£’000
12,054
21,825
(239)
(545)
11,815
21,280
The accompanying accounting policies and notes on pages 56 to 76 form an integral part of these financial statements.
Anchor Trust Annual Report & Financial Statements
53

Consolidated
Balance Sheet
as at 31 March 2014
Note
£’000
2014
£’000
£’000
2013
£’000
Intangible Fixed Assets
Goodwill
13
50
102
Tangible Fixed Assets
Housing properties – gross cost less depreciation
14
915,350
887,745
Less: Social housing grant
14
(515,972)
(520,211)
14
(43,804)
(44,643)
Other capital grants and receipts
355,574
322,891
Other tangible fixed assets
14
4,248
2,622
Investments
15
3,129
3,423
363,001
329,038
Current Assets
Stocks
16
13,258
2,732
Debtors: amounts due within one year
17
18,772
25,585
Debtors: amounts due after more than one year
18
20,763
21,304
Short term deposits and investments
19
24,521
27,428
46,771
66,208
124,085
143,257
(61,285)
(50,337)
Cash at bank
Creditors: amounts falling due within one year
20
62,800
92,920
425,801
421,958
21
139,827
142,929
Provisions for liabilities and charges
22
967
1,216
Pension liability
26
35,657
39,224
Restricted reserves
28
354
355
Income and Expenditure reserve
28
248,996
238,234
425,801
421,958
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than one year
Provisions and Pension Liability
Capital and Reserves
The financial statements on pages 52 to 76 were approved by the Board on 22 July 2014 and signed on its behalf by:
Pamela Chesters CBE Chairman
Stephen Jack OBE Director
For year ending 31 March 2014
54

Company Balance Sheet
as at 31 March 2014
Note
£’000
2014
£’000
£’000
2013
£’000
Intangible Fixed Assets
Goodwill
13
-
53
Tangible Fixed Assets
Housing properties – gross cost less depreciation
14
915,416
888,171
Less: Social housing grant
14
(515,972)
(520,211)
14
(43,804)
(44,643)
Other capital grants and receipts
355,640
323,317
Other tangible fixed assets
14
4,248
2,622
Investments
15
3,129
3,423
Investments in subsidiary undertakings
15
2,301
2,301
365,318
331,716
Current Assets
Stocks
16
3,761
2,732
Debtors: amounts due within one year
17
18,601
25,478
Debtors: amounts due after more than one year
18
37,269
28,740
Short term deposits and investments
19
24,521
27,428
42,575
63,782
126,727
148,160
(57,721)
(49,266)
Cash at bank
Creditors: amounts falling due within one year
20
69,006
98,894
434,324
430,610
21
139,827
142,929
Provisions for liabilities and charges
22
967
1,216
Pension liability
26
35,657
39,224
Restricted reserves
28
354
355
Income and Expenditure reserve
28
257,519
246,886
434,324
430,610
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than one year
Provisions and Pension Liability
Capital and Reserves
The financial statements on pages 52 to 76 were approved by the Board on 22 July 2014 and signed on its behalf by:
Pamela Chesters CBE Chairman
Anchor Trust Annual Report & Financial Statements
Stephen Jack OBE Director
55

Consolidated Cash Flow
Statement
for the year ended 31 March 2014
Note
Net cash inflow from operating activities
2014
£’000
2013
£’000
29.1
46,352
41,831
29.3
(7,234)
(5,457)
29.3
(61,236)
(25,259)
(22,118)
11,115
2,907
24,781
(19,211)
35,896
(226)
(184)
(19,437)
35,712
Returns on investments and servicing of finance
Net cash outflow from returns on investments and servicing of finance
Capital expenditure and finance investment
Net cash outflow from capital expenditure and financial investment
Net cash (outflow) / inflow before use of liquid resources and financing
Management of liquid resources
Net cash inflow from management of liquid resources
29.3
Net cash (outflow) / inflow before financing
Financing
Net cash outflow from financing
(Decrease) / increase in cash
29.3
2014
£’000
2013
£’000
Reconciliation of net cash flow to movement in net debt
(Decrease) / increase in cash in the period
(19,437)
35,712
Cash inflow from net increase in debt
226
184
Change in debt resulting from movement in finance lease obligations
171
84
(2,907)
(24,781)
Movement in net funds in the year
(21,947)
11,199
Net debt at 1 April
(29,981)
(41,180)
Cash flow from decrease in liquid resources
Net debt at 31 March
(51,928) (29,981)
The accompanying accounting policies and notes on pages 56 to 76 form an integral part of these financial statements.
For year ending 31 March 2014
56

Notes to the
Financial Statements
for the year ended 31 March 2014
1
Basis of accounting
The financial statements have been prepared on
a going concern basis under the historical cost
convention as modified by the revaluation of
fixed asset investments and in accordance with
accounting standards applicable in the United
Kingdom. Accounting policies have been applied
consistently with the prior year.
They have been prepared in accordance with
the Accounting Direction for Private Registered
Providers of Social Housing 2012.
2
Basis of consolidation
The Group financial statements comprise those
of Anchor Trust and its subsidiary undertakings.
3
Principal accounting policies
i Turnover
Turnover is net of voids and Value Added Tax
and includes:
 Rents and service charges from social housing
lettings and leasehold management
 Residential care home charges
 Home care charges
 Revenue grants
 Sales of leasehold properties
 Supporting People contract income
Turnover has been analysed in accordance with
the requirements of the Accounting Direction for
Private Registered Providers of Social Housing
2012 (see note 4).
Charges for services provided and Supporting
People income are recognised as income when
Anchor has provided the service concerned.
Grants made as contributions to revenue
expenditure are credited to income in the period
in which the related expenditure is incurred.
Anchor Trust Annual Report & Financial Statements
Income from the sale of leasehold properties is
recognised as turnover at the completion date
of the sale of the property.
Voids represent rent losses arising from vacant
accommodation and the amount is shown in
Note 4.3, as required by the Accounting Direction
for Private Registered Providers of Social
Housing 2012.
ii Interest payable
Interest is capitalised on borrowings to finance
developments to the extent that it accrues
in respect of the period of development if it
represents either:
a)interest on borrowings specifically financing
the development programme after deduction
of interest on social housing grant received in
advance; or
b)interest on borrowings of Anchor Trust as a
whole after deduction of interest on social
housing grant received in advance to the extent
that they can be deemed to be financing the
development programme.
Other interest payable is charged to the income
and expenditure account in the year.
iii Pensions
Defined contribution pension costs are charged to
the income and expenditure account in the year
they are incurred.
In respect of defined benefit pensions, the pension
costs charged against income are based on an
actuarial method and actuarial assumptions.
Before the current financial year, these were
designed to provide the anticipated pension cost
over the average service lives of the employees in
the scheme in a way that sought to ensure that
the regular pension cost represented a broadly
level percentage of the current and expected future
pensionable payroll in the light of current actuarial
57
assumptions. Variations from the current costs
were spread over the average service lives of the
employees in the scheme in a way that seeks to
ensure that the regular pension cost represents
a broadly level percentage of the current and
expected future pensionable payroll in the light of
current acturial assumptions. Variations from the
current cost were spread over the remaining service
lives of current employees in the pension scheme.
As the scheme was closed to further accrual as at 31
March 2011, the anticipated pension costs are primarily
the scheme expenses and there is no remaining
service life of employees assumed for the scheme.
iv Taxation
Income and capital gains of Anchor Trust are exempt
from tax where arising from charitable purposes.
v Leases
 As Lessee
Assets financed by leasing agreements which
give rights approximating to ownership (finance
leases) have been capitalised at their fair value
and depreciation is provided on the basis of
the Group depreciation policy. The capital
elements of future obligations under finance
leases are included as liabilities in the balance
sheet and the current year’s interest element,
having been allocated to accounting periods to
give a constant periodic rate of charge on the
outstanding liability, is charged to the Income
and Expenditure Account. The annual payments
under all other lease arrangements, known as
operating leases, are charged to the Income and
Expenditure Account on a straight-line basis.
 As Lessor
Upon completion of properties the development
costs incurred under a Private Finance Initiative
(PFI) contract are converted to a finance lease
debtor. This debtor represents the total amount
outstanding under the lease agreements less
unearned income. Finance lease income, having
been allocated to accounting periods to give
a constant periodic rate of return on the net
investment, is included in turnover.
vi Housing properties
Retirement housing and residential care home
properties are stated at cost less social housing
grant, other capital grants and depreciation.
Shared Ownership for the Elderly (SOE) schemes
are held at the outstanding interest in the properties
less social housing grant retained and depreciation.
The outstanding interest in SOE schemes is stated at
cost, plus cost of equity subsequently repurchased by
Anchor Trust. Proceeds from first tranche disposals
are accounted for in the income and expenditure
account in the year in which the disposal occurs.
Cost for housing properties includes the cost of
acquiring land and buildings, construction costs
including internal equipment and fittings, cost
of capital employed during the development
period and expenditure incurred in respect of
improvements and extension of existing properties
to the extent that it enhances the economic benefit
derived from the assets.
The costs of housing properties are split between
the structure and those major components which
require periodic replacement. Replacement or
restoration of such major components is capitalised
and depreciated over the average estimated
useful life which has been set taking into account
professional advice, the Group’s asset management
strategy and the requirements of the Decent Homes
Standard. The lives attributable to assets capitalised
in this way range from four to 50 years.
Housing properties in the course of construction
are held at cost and are not depreciated. They are
transferred to completed properties when ready
for letting.
The asset lives used are as follows:
 Housing properties and residential care homes:
between 25 and 50 years except where the
economic life of the property is dependent on a
revenue support agreement in which case the
life used is the initial term of that agreement.
For individual components the assets lives used
are as follows:
 Bathrooms and kitchens: 10 years
 Windows: 15 years
 SOE schemes: 99 years.
For all properties impairment reviews are carried
out on an annual basis in accordance with
Financial Reporting Standard 11.
The depreciation policy relating to Housing Properties
follows the SORP Updated 2010 on Accounting by
registered social landlords. Depreciation is calculated
on cost net of any grant received.
For year ending 31 March 2014
58
vii Social housing grant
Social housing grant is receivable from central
government agencies and local authorities and is
offset against the cost of housing properties on the
face of the balance sheet. The purpose of social
housing grant is to subsidise the capital cost of
affordable housing.
Social housing grant due from such agencies or
received in advance is included as a current asset
or liability.
Where, following the sale of the property, social
housing grant becomes repayable, to the extent
that it is not subject to abatement, it is included as a
liability until it is repaid or utilised.
Any social housing grant received in respect of
revenue expenditure is credited to the income
and expenditure account in the same year as the
expenditure to which it relates.
viii Other grants
The capital costs of housing properties are stated
net of capital grants, other than social housing
grant, receivable from public bodies.
Grants in respect of revenue expenditure are credited
to the income and expenditure account in the
same year as the expenditure to which they relate.
ix Other tangible fixed assets
All other tangible fixed assets are included at cost
less depreciation.
Depreciation is provided on a straight line basis on
the cost of the asset less the estimated residual
value on all tangible fixed assets except land.
The asset lives used are as follows:
Motor vehicles: four years
Computer equipment: two to four years
Office equipment and fittings: four years
x Investments
All investments are stated at market value at the
balance sheet date. Investments that are intended
to be held to generate returns for use on a
continuing basis in the activities of Anchor Trust
are classified as fixed assets.
Investments held as part of short term treasury
management for a planned expenditure purpose
are classified as current assets.
Anchor Trust Annual Report & Financial Statements
xi Restricted reserves
Restricted reserves are funds received, the use of
which is restricted by general law or by the terms
on which the funds were given.
These include funds where the donor has made a
donation to be spent for a particular purpose or in
a particular geographical area.
xii Impairment
When a review of individual fixed assets or income
generating units indicates an impairment, this is
recognised in the income and expenditure account
and included within cumulative depreciation.
xiii Stock
Stock comprises properties available for resale
and goods for consumption, which are shown
at cost. This is considered to be a reasonable
approximation to the lower of cost and net
realisable value.
xiv Positive goodwill
Where the fair value consideration for an
acquired business exceeds the fair value of its
separable net assets, the difference is treated
as purchased goodwill and is capitalised and
amortised through the income and expenditure
account over its estimated economic life.
The estimated useful economic life of goodwill
is four to 10 years.
xv Financing costs
The initial cost of raising finance is charged to the
income and expenditure account when incurred.
xvi Provision for liabilities
A provision is made when Anchor Trust has a
legal or constructive obligation as a result of a
past event and it is probable that an outflow
of economic benefits will be required to settle
the obligations. Anchor Trust closes retirement
housing and care homes that are not financially
viable in the ordinary course of business and
provision is made accordingly.
xvii Related parties
Anchor Trust has taken advantage of
the exemption contained in Financial
Reporting Standard 8 and has therefore
not disclosed transactions between group
companies that are eliminated on consolidation.
All transactions between group companies
are on commercial terms.
59
4
Particulars of turnover, operating costs and operating surplus
4.1 Analysis of turnover
Turnover
Operating costs
Operating surplus / (deficit)
before exceptional items
Social
housing
lettings
£’000
Non-social
Central
housing
overheads
Home care activities and income 2014 Total
£’000
£’000
£’000
£’000
2013 Total
£’000
256,847
2,889
5,128
958
265,822
264,851
(226,916)
(3,313)
(6,841)
(10,451)
(247,521)
(246,742)
29,931
(424)
(1,713)
(9,493)
18,301
18,109
Social housing lettings comprise income from retirement housing and from residential care homes (see note 4.3).
Home care income comprises income from care services delivered into customers’ homes.
Anchor’s costs relating to administration, offices and other support functions are allocated to Anchor Trust’s businesses,
being social housing lettings, home care and non-social housing activities. The amounts allocated were £35,557,000
(2013: £35,424,000), £645,000 (2013: £992,000) and £3,775,000 (2013: £3,465,000) respectively. Anchor Trust, which
operates the regulated retirement housing to let and residential care home businesses, also transacts with other group
companies, which are not regulated, and these transactions are described in note 32.
4.2 Particulars of turnover from non-social housing activities
2014
£’000
2013
£’000
3,468
3,196
Sales of leasehold properties
849
5,958
Other activities
811
1,330
5,128
10,484
Leasehold management
Total
All turnover has been derived from activities within the United Kingdom.
For year ending 31 March 2014
60
4.3 Particulars of turnover and operating
costs from social housing lettings
Retirement
housing
Residential
to let
care homes 2014 Total
£’000
£’000
£’000
2013 Total
£’000
Income
Rent receivable net of identifiable service charges
84,038
120,816
204,854
198,508
2,657
-
2,657
2,435
46,014
-
46,014
43,898
132,709
120,816
253,525
244,841
15
464
479
658
Other income from social housing lettings
2,202
641
2,843
2,220
Income from social housing lettings
134,926
121,921
256,847
247,719
Management
23,424
17,618
41,042
40,260
Service charge costs
41,379
92,668
134,047
128,540
Routine maintenance
8,802
1,136
9,938
9,186
Planned maintenance
11,098
1,493
12,591
11,848
Bad debts
611
208
819
1,064
Lease charges
100
560
660
611
19,699
7,704
27,403
27,861
88
328
416
382
Operating costs on social housing lettings
105,201
121,715
226,916
219,752
Operating surplus on social housing lettings
29,725
206
29,931
27,967
Charges for support services
Service charge income
Net rental income
Other revenue grants
Expenditure
Depreciation of housing properties
Other costs
The value of void losses was £2,364,000 (2013: £2,704,000)
4.4 Property numbers
Unit numbers available as at 1 April 2013
Retirement
Retirement
Residential
housing
housing units care homes
leasehold units
to let
units
6,803
22,494
4,339
3
-
-
(36)
(129)
(126)
6,770
22,365
4,213
2014
£’000
2013
£’000
Business disposal credit
-
(34)
Total exceptional items included in operating surplus
-
(34)
Additions
Disposals/De-registered
Unit numbers available as at 31 March 2014
5
Exceptional items
The exceptional items arising are as follows:
Exceptional income of £nil (2013: £34,000 income) related to discontinued operations. In 2013 the exceptional credit
arose from the release of unutilised provisions relating to the separation costs for Anchor Staying Put. 6
Impairment of land and buildings
An impairment review of assets has been undertaken as required by Financial Reporting Standard 11.
The review concluded that no impairment charge was required for the year (2013: £nil)
Anchor Trust Annual Report & Financial Statements
61
7
Operating surplus before exceptional items
Operating surplus is stated after charging:
Depreciation of tangible owned fixed assets – housing properties
2013
£’000
2014
£’000
27,506
27,985
1,498
2,018
52
51
2,119
2,338
107
104
70
68
Tax advice
88
43
Pensions consultancy
81
50
-
46
Depreciation of tangible owned fixed assets – other
Amortisation of positive goodwill
Operating lease rentals – land and buildings
Auditor’s remuneration excluding VAT
In their capacity as auditor
In respect of other services:
8
Service charge audit fees
Quality assurance reviews
Directors’ emoluments
The Directors are defined as the members of the Board and members of the Executive Management Board.
Members of the Board are defined as Directors for the purposes of the Companies Act 2006. Members of the
Executive Management Board are not classified as Directors under the Companies Act 2006. One additional post
was created to join the Executive Management Board in the financial year.
2013
£’000
2014
£’000
Payments to Board members during the year
192
147
1,222
1,189
35
41
169
140
39
70
1,465
1,440
362
330
45
44
Total aggregate remuneration payable in respect of the Executive Management Board:
Emoluments (excluding benefits in kind)
Benefits in kind
Pension contributions
Compensation paid in respect of loss of office
Payments to the highest paid Director
Total emoluments, excluding pension contributions
Defined benefit pension scheme
Accrued pension of the highest paid Director
The highest paid Director was the Chief Executive who received a base salary of £293,000 (2013: £286,000) and a
bonus for the year of 7.5% of base salary (2013: 10%). The Chief Executive is entitled to a car allowance. The value
of the car allocated, as a benefit in kind, was £13,599 (2013: £12,964) and the balancing amount was paid as an
allowance of £3,742 (2013: £3,742), in accordance with Anchor’s policy. The Chief Executive was an ordinary member
of the Anchor Trust defined benefit scheme before it was closed to further contributions on 1 April 2011 and is an
ordinary member of the Anchor Trust defined contribution scheme. Employer’s contribution in respect of the Chief
Executive’s pension in the year was £87,945 (2013: £57,200) of which £29,315 was taken as cash. No contribution
was made to any other individual pension schemes.
For year ending 31 March 2014
62
9
Employee costs and numbers
9.1 Employee costs:
2013
£’000
2014
£’000
Wages and salaries
114,593
113,429
Social security costs
8,251
8,102
Pension costs
2,368
1,102
125,212
122,633
9.2 The average number of employees, including part time staff, during the year was:
Office staff
Operational staff
9.3 The full time equivalent number of employees during the year was:
Office staff
Operational staff
2014
Number
2013
Number
720
743
7,725
7,942
8,445
8,685
2014
Number
2013
Number
677
696
5,652
5,677
6,329
6,373
Full time equivalents are calculated based on a standard working week of 37.5 hours.
The full time equivalent number of employees whose total aggregrate remuneration (including pension
contributions and compensation payable in respect of loss of office) fell within the following bands was:
2013
Number
2014
Number
2013
Number
2014
Number
£60,001 to £70,000
27
16
£160,001 to £170,000
2
2
£70,001 to £80,000
2
8
£170,001 to £180,000
1
1
£80,001 to £90,000
8
5
£180,001 to £190,000
1
-
£90,001 to £100,000
9
12
£210,001 to £220,000
-
1
£100,001 to £110,000
3
1
£270,001 to £280,000
-
1
£110,001 to £120,000
3
3
£280,001 to £290,000
1
-
£120,001 to £130,000
2
6
£380,001 to £390,000
-
1
£130,001 to £140,000
-
1
£420,001 to £430,000
1
-
£140,001 to £150,000
1
2
Anchor Trust Annual Report & Financial Statements
63
10
Interest receivable and other income
Interest receivable
2013
£’000
2014
£’000
2,221
2,373
Exchange rate gain
239
545
Other income
267
432
2,727
3,350
11
Interest payable and similar charges
On bank loans, overdrafts and other loans repayable wholly or partly in more than five years
6,173
6,182
(55)
(50)
1,296
1,728
7,414
7,860
Less: Interest capitalised
Finance lease interest
2013
£’000
2014
£’000
Interest was capitalised on assets under construction at a rate of LIBOR + 0.225%, being the weighted average rate
payable on the bank loans used to finance development costs.
12
Taxation charge
The taxation charge comprises:
2013
£’000
2014
£’000
United Kingdom corporation tax at 23% (2013: 24%)
-
-
-
-
The tax assessed for the period is lower than that resulting from applying the standard rate of 23% (2013: 24%)
corporation tax in the UK. The differences are explained below:
2013
£’000
2014
£’000
Surplus for the year
12,054
21,825
Tax on surplus at standard rate of 23% (2013: 24%)
(2,772)
(5,238)
2,772
5,238
-
-
Factors affecting charge for the year
Charitable surplus exempt from taxation
Anchor Trust is exempt from UK corporation tax on activities which fall under its charitable objects.
13
Intangible fixed assets
Group
£’000
Company
£’000
Goodwill
At 1 April 2013
102
53
Amortisation for the year
(52)
(53)
As at 31 March 2014
50
-
For year ending 31 March 2014
64
14
Tangible fixed assets
14.1 Housing properties – Group
Retirement
housing
£’000
Properties
Residential
under
care homes construction
£’000
£’000
Shared
ownership Total housing
schemes
properties
£’000
£’000
Cost
At 1 April 2013
845,439
228,575
19,414
4,751
1,098,179
Additions
28,755
5,797
27,830
-
62,382
Transfers
(7)
277
(270)
-
-
Disposals
(8,549)
(4,448)
-
-
(12,997)
865,638
230,201
46,974
4,751
1,147,564
128,863
81,571
-
-
210,434
19,813
7,693
-
-
27,506
Transfers
-
-
-
-
-
Disposals
(3,534)
(2,192)
-
-
(5,726)
As at 31 March 2014
145,142
87,072
-
-
232,214
Net book value at 31 March 2014
720,496
143,129
46,974
4,751
915,350
Net book value at 31 March 2013
716,576
147,004
19,414
4,751
887,745
474,904
38,638
-
6,669
520,211
Transfer to Recycled Capital Grant Fund
(2,830)
-
-
-
(2,830)
Disposals
(1,409)
-
-
-
(1,409)
470,665
38,638
-
6,669
515,972
25,533
19,110
-
-
44,643
Transfers
-
-
-
-
-
Disposals
(39)
(800)
-
-
(839)
25,494
18,310
-
-
43,804
Total SHG and other capital grants
as at 31 March 2014
496,159
56,948
-
6,669
559,776
Total SHG and other capital grants
as at 31 March 2013
500,437
57,748
-
6,669
564,854
Overall net book value
as at 31 March 2014
224,337
86,181
46,974
(1,918)
355,574
Overall net book value
as at 31 March 2013
216,139
89,256
19,414
(1,918)
322,891
As at 31 March 2014
Depreciation
At 1 April 2013
Provided in the year
Social housing grant (SHG)
At 1 April 2013
As at 31 March 2014
Other capital grants
At 1 April 2013
As at 31 March 2014
Anchor Trust Annual Report & Financial Statements
65
14.2 Housing properties – Company
Retirement
housing
£’000
Properties
Residential
under
care homes construction
£’000
£’000
Shared
ownership Total housing
schemes
properties
£’000
£’000
Cost
At 1 April 2013
844,725
241,358
7,771
4,751
1,098,605
Additions
28,755
5,797
27,470
-
62,022
Transfers
(7)
277
(270)
-
-
Disposals
(8,549)
(4,448)
-
-
(12,997)
864,924
242,984
34,971
4,751
1,147,630
128,863
81,571
-
-
210,434
19,813
7,693
-
-
27,506
Transfers
-
-
-
-
-
Disposals
(3,534)
(2,192)
-
-
(5,726)
As at 31 March 2014
145,142
87,072
-
-
232,214
Net book value at 31 March 2014
719,782
155,912
34,971
4,751
915,416
Net book value at 31 March 2013
715,862
159,787
7,771
4,751
888,171
474,904
38,638
-
6,669
520,211
Transfer to Recycled Capital Grant Fund
(2,830)
-
-
-
(2,830)
Disposals
(1,409)
-
-
-
(1,409)
470,665
38,638
-
6,669
515,972
25,533
19,110
-
-
44,643
Transfers
-
-
-
-
-
Disposals
(39)
(800)
-
-
(839)
25,494
18,310
-
-
43,804
Total SHG and other capital grants
as at 31 March 2014
496,159
56,948
-
6,669
559,776
Total SHG and other capital grants
as at 31 March 2013
500,437
57,748
-
6,669
564,854
Overall net book value
as at 31 March 2014
223,623
98,964
34,971
(1,918)
355,640
Overall net book value
as at 31 March 2013
215,425
102,039
7,771
(1,918)
323,317
As at 31 March 2014
Depreciation
At 1 April 2013
Provided in the year
Social housing grant (SHG)
At 1 April 2013
As at 31 March 2014
Other capital grants
At 1 April 2013
As at 31 March 2014
For year ending 31 March 2014
66
14.3 Housing properties held under finance leases – Group and Company
The balances for residential care homes include four residential care homes held under finance leases at gross cost
£11,878,000 (2013: £11,878,000) with accumulated depreciation of £8,188,000 (2013: £7,847,000). The depreciation
charge during the year was £341,000 (2013: £509,000).
14.4 Other tangible fixed assets – Group and Company
Office
equipment
and fittings
£’000
Total other
tangible
fixed assets
£’000
Motor
vehicles
£’000
Cost
At 1 April 2013
16,149
97
16,246
Additions
3,126
-
3,126
Transfers
-
-
-
Disposals
(10)
(97)
(107)
19,265
-
19,265
13,527
97
13,624
1,498
-
1,498
Transfers
-
-
-
Disposals
(8)
(97)
(105)
15,017
-
15,017
Net book value at 31 March 2014
4,248
-
4,248
Net book value at 31 March 2013
2,622
-
2,622
As at 31 March 2014
Depreciation
At 1 April 2013
Provided in the year
As at 31 March 2014
14.5 Housing properties
Additions to housing properties in the course of construction during the period included capitalised interest of £55,000
(2013: £50,000).
The net book value of housing properties
at the balance sheet date comprises:
Freehold land and buildings
Long leasehold land and buildings
Group
Company
2014
£’000
2013
£’000
2014
£’000
2013
£’000
325,530
291,114
325,596
291,540
30,044
31,777
30,044
31,777
355,574
322,891
355,640
323,317
The total amount of social housing grant received or receivable as at the balance sheet date was £515,972,000
(2013: £520,211,000).
14.6 Expenditure works to housing properties
Note
Total expenditure works to housing properties
2014
£’000
2013
£’000
47,143
42,414
34,552
30,566
12,591
11,848
of which:
Amounts capitalised
Amounts charged to income and expenditure (Planned maintenance)
Anchor Trust Annual Report & Financial Statements
4.3
67
14.7 (Deficit) / surplus on disposal of housing properties
2014
£’000
Receipts from disposal of housing properties
2013
£’000
5,169
17,203
Net book value of property disposals
(2,201)
(6,538)
Transfer to Recycled Capital Grant Fund
(2,830)
(3,250)
Other disposal costs
(1,698)
777
(Deficit) / surplus on disposal of housing properties
(1,560)
8,192
15
Fixed asset investments
15.1 Fixed asset investments – Group and Company
£’000
Market value at 1 April 2013
3,423
Realised investment gains
239
Disposals at market value
(533)
Market value at 31 March 2014
3,129
Historic cost at 31 March 2014 (2013: £2,730,000)
2,332
Company
£’000
15.2 Fixed asset investments – Subsidiary undertakings
Cost at 1 April 2013 and 31 March 2014
2,301
The following subsidiary undertakings are controlled by Anchor Trust and are registered in England and Wales:
Company
Nature of business
Share capital
Anchor Lifestyle Developments Limited
Residential care homes and housing development
£1
Anchor 2020 Limited
Design and construction services
£1
Anchor Retirement Living Limited
Dormant
£1
Anchor Trust Trading Limited
Dormant
£1,000
AMSA Retirement Homes Limited
Dormant
£100
Rain Healthcare Services Limited
Dormant
£1,000
Anchor Trust is regarded as the parent company for these companies on the grounds that it either owns 100% of the
issued share capital or it has the sole right to nominate Directors.
16
Stock – Group and Company
Group
2014
£’000
Properties for resale
Raw materials and consumables
Company
2013
£’000
2014
£’000
2013
£’000
13,117
2,597
3,620
2,597
141
135
141
135
13,258
2,732
3,761
2,732
Stocks of raw materials and consumables relate to catering supplies within residential care homes. Properties held for
resale includes £3,620,000 (2013: £2,697,000) properties ready for resale and £9,497,000 (2013:£nil) work in progress.
For year ending 31 March 2014
68
17
Debtors: amounts falling due within one year
Group
2013
£’000
2014
£’000
Rental debtors
Company
2013
£’000
2014
£’000
5,562
10,260
5,562
10,260
(1,206)
(1,282)
(1,206)
(1,282)
4,356
8,978
4,356
8,978
Trade debtors
371
6,782
371
6,782
Prepayments
7,630
4,389
8,743
4,389
Other debtors and accrued income
6,415
5,436
5,131
5,329
18,772
25,585
18,601
25,478
Less: Provision for bad and doubtful debts
18
Debtors: amounts falling due after more than one year
Group
2013
£’000
2014
£’000
Finance debtor
Amounts due from subsidiary undertakings
Amounts due from related companies
Other debtors
Company
2013
£’000
2014
£’000
19,187
19,617
19,187
19,617
-
-
16,506
7,436
1,036
1,147
1,036
1,147
540
540
540
540
20,763
21,304
37,269
28,740
Upon completion of properties the development costs incurred under a PFI contact have been converted to a finance
debtor in line with Anchor’s accounting policy.
Amounts due from related companies comprise amounts due from Burnbank House Limited, a company registered in
England and Wales, of which Anchor Trust owns 25% of the company’s share capital.
Transactions with Burnbank House Limited are as follows. Interest receivable for 2014: £111,000 (2013: £111,000) and
rent payable for 2014: £113,000 (2013: £113,000).
19
Short term deposits and investments – Group and Company
2013
£’000
2014
£’000
Short term bank deposits
Money market fund investments
Anchor Trust Annual Report & Financial Statements
-
3,000
24,521
24,428
24,521
27,428
69
20
Creditors: amounts falling due within one year
Group
Note
2014
£’000
Company
2013
£’000
2014
£’000
2013
£’000
Trade creditors
4,471
3,980
4,526
4,035
Rents received in advance
3,139
2,866
3,139
2,866
Surpluses carried forward on variable service charge schemes
3,626
3,162
3,626
3,162
Recycled capital grant fund
21
7,083
2,767
7,083
2,767
Housing loans: current instalments due on loans
23
644
701
644
701
Obligations under finance leases
25
207
169
207
169
Social security and other taxes
2,360
2,867
2,360
2,867
Other creditors
8,871
7,938
8,826
7,938
30,884
25,887
27,310
24,761
61,285
50,337
57,721
49,266
Accruals and deferred income
21
Creditors: amounts falling due after more than one year – Group and Company
Note
Recycled capital grant fund
2013
£’000
2014
£’000
6,107
7,537
Housing loans
23
109,275
109,456
Obligations under finance leases
25
12,759
12,968
335
323
Major repairs sinking funds for leasehold schemes
9,671
10,169
Other creditors
1,680
2,476
139,827
142,929
Loan stock
Major repairs sinking funds for leasehold schemes
Major repairs sinking funds are maintained for most leasehold retirement estates to provide for repairs of a long term
nature. Contributions are normally received from leasehold customers on the resale of properties by reference to the
length of occupation and original purchase price of the property. Some leasehold customers contribute through the
service charge.
Recycled capital grant fund
Fund at 1 April
2013
£’000
2014
£’000
10,304
7,013
2,830
3,250
-
-
56
41
13,190
10,304
Falling due within one year
7,083
2,767
Falling due after more than one year
6,107
7,537
13,190
10,304
Transferred to fund during the year
Utilised during the year
Interest credited to fund
Fund at 31 March
The total recycled capital grant fund balance would be repayable to the Homes & Communities Agency in the event that
it is not utilised.
For year ending 31 March 2014
70
22
Provisions for liabilities and charges – Group and Company
Onerous Business
Tax
Leases Disposal Liabilities
Note
£’000
£’000
£’000
Balance as at 1 April
Balances utilised in the year
Balances released in the year
5
Provisions raised during the year
Balance as at 31 March
23
2013
£’000
2014
£’000
1,158
50
8
1,216
1,726
(198)
(50)
(1)
(249)
(787)
-
-
-
-
(34)
-
-
-
-
311
960
-
7
967
1,216
Housing loans – Group and Company
All housing loans from Orchardbrook Limited, HACO, local authorities and banks are secured by charges on certain of
Anchor Trust’s housing properties and are repayable at varying rates of interest as follows:
2014
£’000
2013
£’000
Fixed rates
Orchardbrook Limited
Interest payable at 11.615%
28,912
29,104
HACO
10.625% debenture stock 2017
15,000
15,000
Banks
Between 5.895% and 6.345%
10,000
10,000
Local authorities
Between 11.600% and 16.500%
108
112
Other
Between 0.000% and 3.000%
590
590
54,610
54,806
55,000
55,000
309
351
55,309
55,351
109,919
110,157
Variable rates
Banks
0.200% – 0.450% above LIBOR
Orchardbrook Limited
Interest payable 1.550%
Total housing loans
The total net book value of housing properties used to secure liabilities to third parties is £123,988,000
(2013: £119,200,000)
Repayment instalments fall due as follows:
In one year or less
2014
£’000
2013
£’000
644
701
Greater than one year, but less than two
1,196
177
Greater than two years, but less than five
25,466
18,649
In five years or more
82,613
90,630
109,919
110,157
Anchor Trust Annual Report & Financial Statements
71
24
Operating lease obligations – Group and Company
Anchor Trust leases a number of properties and motor vehicles under operating leases. The annual commitments under
non-cancellable operating leases are set out below:
Motor
Properties vehicles
£’000
£’000
2014
£’000
2013
£’000
Operating leases which expire:
Within one year
214
83
297
33
In the second to fifth years
806
825
1,631
1,439
Over five years
260
-
260
1,190
1,280
908
2,188
2,662
Total
25
Finance lease obligations – Group and Company
Obligations under finance leases are payable as follows:
Gross
obligations
£’000
Future
finance
charges
£’000
2014 Net
2013 Net
obligations obligations
£’000
£’000
In one year or less
1,497
1,290
207
169
Between two and five years
6,785
4,963
1,822
1,408
17,663
6,726
10,937
11,560
25,945
12,979
12,966
13,137
In five years or more
Total
26
Pension obligations – Group and Company
Anchor Trust operates two pension schemes for its employees:
Defined contribution scheme:
A defined contribution scheme was opened on 1 January 2003. The pension cost for this scheme,
which represents contributions payable by the Group, was £2,368,000 (2013: £1,102,000).
Defined benefit scheme:
Members of staff employed prior to 1 January 2003 were eligible to join a group life assurance and
pension scheme which provides benefits based on final pensionable salary. The assets of the scheme
are held separately by an independent fund manager, The Pensions Trust. After consultation with
members, the defined benefit scheme was closed to future contributions from existing members as at
1 April 2011. Anchor will contribute an initial £5,052,000 per year into the scheme increasing 3% per
annum for the next nine years.
The total group charge for the year was £340,000 (2013: £348,000). The contributions were
determined on the basis of actuarial advice using the projected unit method and relate entirely
to current service costs. Before the scheme closed, Anchor Trust paid contributions at 12.5% of
pensionable salaries.
The last full valuation was carried out at 30 September 2012. The next valuation is due to be carried
out on data as at 30 September 2015.
For year ending 31 March 2014
72
Financial Reporting Standard 17 “Retirement Benefits” (FRS17) disclosures
Anchor applies the provisions of FRS17 in preparing these accounts. A valuation for the purposes of FRS17 was
prepared as at 31 March 2014 by a qualified independent actuary. The assumptions used by the actuary are:
At 31 March 2014 At 31 March 2013
% per annum
% per annum
At 31 March 2012
% per annum
Inflation rate
3.30
3.30
3.10
Rate of increase in salaries
4.30
4.30
4.60
Rate of increase for pensions in payment
2.00
2.00
1.80
Rate of increase for deferred benefits during deferment
3.30
3.30
3.10
Discount rate
4.40
4.40
4.60
The assets in the scheme and the expected rates of return were:
Expected
Market
Expected
rate of
value at 31
rate of
return March 2014
return
%
£’000
%
Market value
at 31 March
2013
£’000
Expected
rate of
return
%
Market value
at 31 March
2012
£’000
Equities
7.00
87,050
7.30
84,295
8.00
75,930
Bonds
3.40
37,321
4.20
36,645
5.10
31,178
Property
6.00
9,559
6.30
8,684
7.00
8,368
Cash
0.50
715
0.50
1,628
0.50
1,027
Total market value of assets
134,645
131,252
116,503
Present value of scheme liabilities
(170,302)
(170,476)
(153,282)
Net pension liability
(35,657)
(39,224)
(36,779)
Movement in liability during the year:
Liability at the start of the year
2013
£’000
2012
£’000
2011
£’000
2010
£’000
(39,224)
(36,779)
(29,569)
(40,459)
(26,146)
4,932
4,932
4,980
1,799
2,154
(340)
(348)
(16)
(2,011)
(1,615)
267
432
293
(125)
(1,439)
(1,292)
(7,461)
(12,467)
11,227
(13,413)
(35,657)
(39,224)
(36,779)
(29,569)
(40,459)
2014
£’000
Movement during the year
Contributions paid
Current service cost
Other finance income / (charge)
Recognised actuarial (loss) / gain
Liability at the end of the year
Analysis of the amount charged to operating surplus:
Current service cost
Analysis of the amount charged to other finance income:
Expected return on assets
Interest cost
Net charge to other interest payable
Anchor Trust Annual Report & Financial Statements
2014
£’000
340
2014
£’000
2013
£’000
348
2013
£’000
7,644
7,360
(7,377)
(6,928)
267
432
73
Analysis of amount recognised in statement of total recognised surpluses and deficits:
2014
£’000
Actual return less expected return
(3,145)
8,193
430
(5,865)
1,423
(9,789)
(1,292)
(7,461)
2011
2010
Experience gain / (loss) on scheme liabilities
Gain / (loss) on change of assumptions
Recognised actuarial loss
History of experience gains and losses:
2014
2013
2012
2013
£’000
Difference between actual and expected returns on assets
Amount (£’000)
% of scheme assets
(3,145)
8,193
(2,880)
(392)
20,907
-2.3
6.2
-2.5
-0.3
19.5
430
(5,865)
1,255
1,363
2,872
0.3
-3.4
0.8
1.0
1.9
Experience gain / (loss) on scheme liabilities
Amount (£’000)
% of scheme liabilities
Total actuarial gain / (loss) recognised in statement of total recognised surpluses and deficits
Amount (£’000)
% of scheme liabilities
(1,292)
(7,461)
(12,467)
11,227
(13,413)
-0.8
-4.4
-8.1
7.9
-9.1
Reconciliation to the balance sheet:
2014
£’000
2013
£’000
Net assets
Net assets excluding pension liability
285,007
277,813
Pension liability
(35,657)
(39,224)
249,350
238,589
Revenue reserve excluding pension liability
284,653
277,458
Pension liability
(35,657)
(39,224)
248,996
238,234
Net assets including pension liability
Reserves
Revenue reserve including pension liability
27
Share capital
Anchor Trust is a company limited by guarantee and as such has no share capital.
28
Movement on reserves
28.1 Movement on other reserves – Group and Company
Restricted reserves
£’000
At 1 April 2013
355
Utilisation of reserve
(3)
Realised investment surpluses
2
At 31 March 2014
354
Restricted reserves represent unspent funds received for specific purposes from external organisations.
Restricted reserves are only expendable in respect of the projects for which they are received.
For year ending 31 March 2014
74
28.2 Movement on Income & Expenditure reserve
Group
£’000
At 1 April 2013
Company
£’000
238,234
246,886
Surplus for the year
12,054
11,925
Actuarial loss on pension fund assets
(1,292)
(1,292)
248,996
257,519
At 31 March 2014
29
Notes to the consolidated cash flow statement
29.1 Reconciliation of operating surplus to net cash flow from operating activities
2013
£’000
2014
£’000
Total operating surplus
18,301
18,143
Depreciation
29,004
30,003
Movement in restricted reserves
(1)
(2)
Amortisation of positive goodwill
52
51
(4,592)
(4,584)
(10,526)
3,070
Decrease / (increase) in debtors
7,354
(6,136)
Increase in creditors
6,760
1,286
46,352
41,831
Difference between pension charge and cash contributions
(Increase)/decrease in stock
Net cash inflow from operating activities
29.2 Analysis of changes in net debt
At 1 April 2013
£’000
Cash flows
£’000
Non cash
movement
£’000
At 31 March
2014
£’000
Cash at bank and in hand including overnight deposits
66,208
(19,437)
-
46,771
Other short term deposits and investments
27,428
(2,907)
-
24,521
(701)
701
(644)
(644)
Debt due after one year
(109,456)
(463)
644
(109,275)
Finance lease obligations
(13,137)
171
-
(12,966)
(323)
(12)
-
(335)
(29,981)
(21,947)
-
(51,928)
Debt due within one year
Loan stock
Anchor Trust Annual Report & Financial Statements
75
29.3 Analysis of cash flows for headings netted in the cash flow statement
2013
£’000
2014
£’000
Returns on investments and servicing of finance
Interest received
2,221
2,373
(9,455)
(7,830)
(7,234)
(5,457)
(62,108)
(42,728)
Payments to acquire non-housing fixed assets
(3,126)
(914)
Receipts from disposal of housing fixed assets
3,465
18,383
(61,769)
(25,259)
533
-
533
-
(61,236)
(25,259)
2,907
24,781
2,907
24,781
-
-
(226)
(184)
(226)
(184)
Interest paid
Net cash outflow from returns on investment and servicing of finance
Capital expenditure
Payments to acquire and develop housing properties
Financial investment
Receipts from sale of investments
Net cash outflow from capital expenditure and financial investment
Management of liquid resources
Withdrawals from short term deposits
Net cash inflow from management of liquid resources
Financing
Loans advanced
Loan repayments
Net cash outflow from financing
30
Capital commitments – Group & Company
2014
£’000
2013
£’000
Capital expenditure that has been contracted for but has not been provided for in
the financial statements
9,695
7,758
Capital expenditure that has been authorised by the Board but has not yet been
contracted for
75,753
51,758
85,448
59,516
In addition expenditure on developing housing stock of £7,426,000 (2013: £14,708,000) has been contracted for but
not provided for in the financial statements and a further £46,337,000 (2013: £16,028,000) has been authorised by the
Board but not yet contracted for.
All of this anticipated expenditure is covered by existing cash and banking facilities.
31
Contingent liabilities – Group & Company
There were no contingent liabilities as at 31 March 2014 nor at 31 March 2013.
For year ending 31 March 2014
76
32
Transactions with related parties
During the year Anchor Lifestyle Developments Limited made inter-group charges of £511,000 (2013: £3,215,000) in
respect of interest on loans to Anchor Trust. Anchor 2020 Limited made inter-group charges of £325,000 (2013: £668,000)
in respect of interest on loans, management charges and donations to Anchor Trust. In addition, Anchor Lifestyle
Developments sales to Anchor Trust were £nil (2013: £10,905,000) and Anchor 2020 Limited sales to Anchor Trust
were £16,655,000 (2013: £8,818,000). All transactions between group companies are on normal commercial terms.
As at 31 March 2014, Anchor Trust was owed £12,598,000 and £3,393,000 (2013: £12,788,000 and £2,164,000) from
Anchor Lifestyle Developments Limited and Anchor 2020 Limited respectively. Both these companies are 100% owned by
Anchor Trust.
Transactions with Burnbank House Limited are described in Note 18.
During the year one member of the Executive Management Board had relationships with organisations with which
Anchor Trust has immaterial transactions. Jane Ashcroft is a Non Executive Director at English Community Care
Association, Your Care Rating Limited and ARCO Limited, which had transactions with Anchor totalling £33,459,
£25,008 and £8,695 respectively.
There are no other related party transactions in the year to 31 March 2014 (2013: £nil).
33
Legislative provisions
Anchor Trust is registered under the following Acts:
Registration number
Companies Act 2006
3147851
Charities Act 1993
1052183
Housing Act 1996
LH4095
34
Post Balance Sheet Events – Group & Company
There were no post balance sheet events that require disclosure or adjustment to these financial statements.
Anchor Trust Annual Report & Financial Statements
8
77
Section 8
The Board
78
The Board
Pamela Chesters CBE
Stephen Jack OBE
Pamela is Chairman of Central London
Community Healthcare NHS Trust, and
has also chaired the boards of the leading
charity Action for Children and Royal Free
Hampstead NHS Trust, one of the largest
NHS trusts in the UK. She was Chairman
of English Churches Housing Group from
2003 to 2009.
Stephen is a chartered
accountant and has held
a number of senior finance
positions in international
financial services
organisations including
Dresdner Kleinwort
Benson, ING Barings,
Collins Stewart Tullett plc
(where he was Group
Finance Director) and
Compagnie Financière
Tradition SA (where he
was Group CFO).
Chair
Pamela was a councillor for the
London Borough of Camden from
1990 to 2000, including two years
as leader of the opposition. In her
executive roles, she was London
Mayor Boris Johnson’s
Advisor for Health &
Families between
2009 and 2012.
Prior to that, she
spent nearly 20
years at British
Petroleum
Company,
most recently
as CEO of
Duckhams Oils.
Vice Chair
Since 2007 he has
been the Chairman
of the Independent
Living Fund, a nondepartmental public
body sponsored by the
Department for Work
and Pensions, which
provides support to
nearly 18,000 disabled
people across the UK.
Stephen joined the Board
of the Cambridge Building
Society as a non-executive
director in April 2014.
79
Paul Doona
Dr Rima Makarem
Paul, a chartered accountant,
was Finance Director and
Company Secretary of St
Modwen Properties plc from
1985 to 1999, managing the
flotation and restructure of the
company. After two years as
Finance Director and then Chief
Executive of Claims Direct plc,
Paul undertook a number of
chief executive and finance
director roles in the gaming sector.
Paul’s non-executive roles have
encompassed various sectors
including leisure, property,
financial services, asset
management and natural resources
businesses. Paul is a non-executive
director of the Dudley Building Society.
Rima has extensive long-standing experience
in healthcare and the pharmaceutical industry.
She currently runs her own interim management
and consultancy business and holds a portfolio
of non-executive positions. These include: NonExecutive Director and Audit Chair at University
College London Hospitals; Trustee of UCLH
Charity; Associate Board Member and Chair of the
Risk Assurance Committee at Health Education
South London; and, until April 2014, member of
the Medical Research Council Audit Committee.
She was until recently a Non-Executive Director
and the Audit Chair at NHS London and at NHS
Haringey before that. Previously she was Director
of Competitive Excellence at GlaxoSmithKline
and, prior to that, a management consultant.
Trustee Director
Angela Horsman
Trustee Director
Angela has more than 30 years’
experience in leisure marketing and
communications. She worked for Saga,
the market leader in services for the
over 50s, where she was Marketing
Director for Saga Holidays and
then Communications Director
for the Saga Group. Angela
was previously Marketing
Director of London Zoo
and Whipsnade Wild
Animal Park and was Chief
Executive of a tourism
development action
programme in Kent. Angela is
a Trustee Director of the Royal
National Lifeboat Institution and
a member of its fundraising
and communications
committee. She is also a
Trustee Director of The Brooke,
an international animal welfare
organisation dedicated
to improving the lives of
working horses, donkeys
and mules in some of the
world’s poorest communities.
Trustee Director
Lesley James CBE
Trustee Director
Lesley progressed through human resources roles
with a number of retailers before joining Tesco
in 1985. She became a main Board Director in
1994 with responsibility for all HR functions.
Since leaving Tesco in 1999 she has undertaken
a range of non-executive roles in retail and customer
service organisations, as well as with the Department
for Trade and Industry and in charities. She is
currently on the board of St Modwen Properties plc.
Chris Wood
Trustee Director
Chris has spent over 20 years
of his career working in local
government. He was Director
of Housing in two London Boroughs and
then held the posts of Deputy and Chief
Executive at the London Borough of
Newham. Chris left local government in
2008 and for the last six years has worked
as a partner with a housing and regeneration
management consultancy company working
with public and private sector clients. He is
a Non-Executive Director of Sahara Homes
(a private sector care provider for adults with
learning disabilities), Fair Finance (a personal
finance social enterprise) and Meridian
Homestart (a housing company wholly
owned by the Royal Borough of Greenwich).
80
“I love my apartment
and the security of not being
on my own. There is always
someone to talk to and so
much to do. It’s a comfort to
know that there is the facility
of care on site if I need it.”
Joan Emms
Denham Garden Village, Uxbridge, Buckinghamshire
A family affair
Joan, 83, first found out about Denham
Garden Village in Uxbridge when her daughter
Lynda moved in. Lynda, 60, decided to opt for
something different when moving back from
the north of England.
Mother and daughter now both live in the
retirement village with their own apartments
and busy lives. Joan has been at Denham for
six happy years and shares an apartment with
92 year old Fred. Joan and Fred are old friends
who reconnected at Anchor’s Denham Garden
Village and the couple are now engaged with
wedding plans afoot.
Denham offered exactly what both women
were looking for – proximity to family, a
modern apartment, and plenty going on.
Future care needs weren’t part of their original
decision but since moving in, both mother and
daughter feel assured that onsite support is on
hand if it’s needed.
81
Section 9
Executive
Management
Board
82
The Executive Management Board
1
Jane Ashcroft CBE
Chief Executive
Jane joined Anchor in 1999 from BUPA, which had acquired Care
First plc where she was Personnel Director. She was previously
HR Manager and Company Secretary with Bromford Housing
Group, and before that Assistant Secretary with Midlands
Electricity plc. Jane chairs Care England, the largest
representative body for providers of adult social care,
and is a Trustee of The Silver Line, a helpline for
older people, and a Board member of ARCO,
representing retirement community operators.
She was appointed Chief Executive of Anchor on
9 March 2010. Jane is a Fellow of the Institute of
Chartered Secretaries, a Member of the Chartered
Institute of Personnel and Development and a
Non-Executive Director of Dignity plc.
2
David Edwards
General Counsel and
Company Secretary
David, a barrister, joined Anchor in July 2011 from
Peverel Limited, where he was Head of Legal Services
and Company Secretary. Prior to that, David was
Company Secretary and Director of Legal Services for
De Vere Group plc until the company was taken over
in 2006. As well as a number of other appointments in
commerce and industry David has also been a Director
of the Cheshire Courts Board.
3
Dominic Hayes
Director of Property,
Development and Procurement
Dominic joined Anchor in January 2014 as Director of Property,
Development and Procurement. Previously Dominic held senior
corporate property roles in private healthcare (BUPA, BMI, Nuffield)
and transportation (National Express Group).These roles involved
responsibility for all property matters across diverse portfolios, both in the
UK and internationally. Dominic also worked as Managing Director of Simons
Developments, a family owned business specialising in retail development
and mixed-use schemes throughout the UK. Dominic is a chartered surveyor
who has operated at a senior level in the property sector for over 20 years.
83
7
3
5
1
6
4
2
4
Sue Ingrouille
Director of Human Resources
Sue joined Anchor as Director of HR in February 2012. Her early career was
with Marks & Spencer, undertaking a wide range of HR roles. She joined
Orange where she was part of the start-up executive team for the B2B part of
the organisation and more recently, HR Director. After eight years
with Orange, Sue moved into executive search for a number of
years before joining the not-for-profit sector with Anchor.
5
Howard Nankivell
Director of Sales & Marketing
Howard joined Anchor in October 2009 and brings
with him 20 years of sales and marketing experience
from a number of different market sectors.
Most of his experience is from the travel and
hospitality industry where he held UK and EMEA
marketing director roles at both Marriott International
and the Hilton Group. Howard was also the Head of
Business Development at Direct Wines where he was
responsible for creating and developing a wide portfolio
of wine club brands including Laithwaites and the
Sunday Times Wine Club.
6
Tim Seal
Director of Operations
Tim joined Anchor in December 2013, following more than
eight years as a Regional Director at BUPA, managing,
developing and growing a region of 105 care homes across
the Midlands, South West and Wales. His earlier career saw him
broadening his experience in a variety of senior sales, account
management, and operational roles with Compass Group,
Group 4 and Braun (UK). Tim also worked as a futures and
options broker for a merchant bank in The City in the mid-90s.
7
David Springthorpe
Chief Financial Officer
David, a chartered accountant, joined Anchor in December 2008 from BAA
Heathrow Airport. Until his move into the not-for-profit sector with Anchor,
David spent his career in a variety of finance, strategy and property roles with
B&Q (where he was also Company Secretary), Kingfisher, and Virgin Atlantic
Airways, before joining BAA Heathrow Airport where he was Chief Financial
Officer. David is also a member of the Institute of Directors and has held a
number of trustee roles for local charities.
84
Accessibility
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audio or electronic formats, or other languages on request.
Contact our Customer Participation Officer on 01274 381 654
Thanks
Many thanks to all the Anchor customers and colleagues featured in this document.
Anchor, 2nd Floor, 25 Bedford Street, London WC2E 9ES
Tel: 020 7759 9100 www.anchor.org.uk
Company Number: 3147851
Registered Charity Number: 1052183 (England and Wales)
Housing Association Number: LH4095