Page 46 - Pobl Annual Report FY25

44 Annual Report 2025
Treasury Management
Our Investment Committee oversees our treasury strategy, treasury management policy, and
treasury risk parameters. Our Golden Rules are more stringent than the most restrictive covenant
levels, both to provide a reasonable margin of safety and to give the confidence to use our safely
available capacity to address the ongoing shortage of high‐quality affordable housing across
South Wales.
Where facilities include financial covenants, these are typically based on interest cover and gearing.
All treasury management Golden Rules were complied with and therefore all covenants were met during
the year, and the Group’s long‐term business plan forecasts continued compliance until 2055.
The level of funding required is continually reviewed, including under a range of adverse scenarios
within business plan stress testing. Availability of sufficient funding with the right terms is a key
priority and is subject to a high level of scrutiny from the Board, Investment Committee and
Executive Committee.
The Group maintains a significant level of immediate liquidity together with a diverse range of
secured facilities from different lenders. Undrawn funding is committed and is available within
three days’ notice.
Available liquidity
At 31 March 2025, the Group had £1.2 billion of cash and total
committed debt facilities (2024: £901 million), of which the total
drawn funding was £806 million (2024: £561 million). The increases
from last year are primarily the result of Linc joining the Group on
1 April 2024. Undrawn facilities have decreased from £322 million
to £303 million, with overall liquidity increasing modestly due to a
£30 million increase in unrestricted cash and overdraft facilities to
£47 million. At 31 March 2025, 78% of committed revolving credit
facilities (RCFs) are undrawn and available (2024: 68%).
Facilities by entity
The majority of the debt in the Group pertains to Pobl Homes &
Communities, representing 74% of total available facilities (2024:
93%). Linc contributes 19% (2024: nil) and the remainder is mainly
the loans which fund our long‐term student partnership schemes.
78%
of RCFs
undrawn
74%
of debt in
Pobl H&C
DRAWN UNDRAWN
POBL H&C LINC POBL LIVING TAI CARTREFI