Annual Report NATIONAL LANDLORDS ASSOCIATION LTD (registered in England, number )

Transcription

1 Annual Report 2015 NATIONAL LANDLORDS ASSOCIATION LTD (registered in England, number ) Notice is hereby given of the thirteenth Annual General Meeting to be held on Thursday 19th November 2015 at 3.15pm at NLA, Skyline House -2 nd Floor, 200 Union St, London, SE1 0LX AGENDA Item 1 To consider and adopt the Company s Annual Report and Accounts for the period ended 30 April Item 2 Item 3 To re-appoint Cobley Desborough as reporting accountants of the Company until the next Annual General meeting at a fee to be agreed with the Board of Directors. To re-elect PATRICK JACOBS as a Director. Item 4 Any other Business (please notify the under-signed with any issues you intend to raise by 3.15pm on 17 November 2015 Item 5 Address by the Chairman. By order of the Board Patrick Jacobs Company Secretary Registered Office: Skyline House -2 nd Floor, 200 Union St, London, SE1 0LX Notes Directors retire after three years service and may offer themselves for re-election. Any member of the company may appoint a proxy by using the form included with the Annual Report, or obtainable from the Company Secretary, and returning it to the registered office by 3.15pm on 17 November Members are invited to complete an electronic version for which we will during October -- a link to all members for whom we have an address, together with a link to the 2015 Annual Report. Notice of this meeting was published within UK Landlord Journal No 176 circulated to Members in Sept Registration from 3pm ADMISSION BY PRODUCING PROOF OF YOUR MEMBER NUMBER* ONLY, PLEASE (*ideally, your membership card or the addressed UK LANDLORD carrier sheet) If you have any questions or proposals, please write them clearly on a slip of paper, with your name on it, and pass to the Company Secretary on arrival at the Registration Desk or submit in advance to patrick.jacobs@landlords.org.uk. For previous Annual Reports visit There is no charge to attend the AGM, but please confirm your attendance by ing booking@landlords.org.uk or by calling Map and directions are available on request or by visiting You may not use any electronic address provided either in this Notice or any related documents to communicate with the Company for any purpose other than those expressly stated. Chairman s Message:

2 The reporting year ended with the UK in an uncertain state, politically at least, as the year to which this report relates closed around one week prior to the General Election. You will recall that the spring of 2015 was a time of uncertainty with the country at a fork in the ideological road. We had reached the end of a tough parliament, with a government no-one really voted for having to make difficult decisions in order to turn a crisis around. To which end, I can t help but draw parallels between UK PLC and the NLA albeit our financial crisis was, thankfully, nowhere near as devastating as that facing the UK. Ahead of last year s AGM, I wrote that we faced a challenge to halt and reverse the growing deficit and that it would take painful actions and concerted effort to shift the balance back in our favour. This year I am delighted to say that, thanks to loyalty of the NLA s members and determination of its staff, we have most certainly turned a corner. As the attached financial report will show, we have achieved a narrow surplus this financial year and with the outlook for strong membership growth continuing, we have set our sights on consolidating this position in Our self-imposed period of austerity has taught the NLA a great deal about efficiency, prioritisation and good governance, knowledge which we intend to put to good use in the coming years, as we redouble our efforts to support private landlords throughout every nation of the UK. In this sense we can make further comparisons with the machinery of government. Just as the people of Scotland were asked in 2014 to decide their future relationship with the rest of the Union, the NLA must consider how we approach the increasingly divergent nations of the UK. The association prides itself in being the only landlords representative organisation with a presence in each country, but as the detail of the support our members require diverges, we must react accordingly. This is why the NLA Board has undertaken to assess the needs of its members, and those outside of our fraternity, in all countries of the UK. We recognise that the needs of landlords in England, Scotland, Wales and Northern Ireland are not homogenous and it may not be possible for our offer to be universal. We are working throughout the organisation to determine where we can improve, what we need to do and crucially where the opportunities lie and look forward to reporting back to the membership in due course about the direction of travel necessary to prepare the NLA for the years ahead. Finally, much as the Coalition s senior partner said farewell to a companion in 2015, one which may have had great promise in the early days, only to fade dramatically over the course of a few years. The NLA has bid farewell to an old friend this year (one which also looked a little shabby by the end) only to move on to brighter futures. As such it has been a pleasure to see the NLA move into its new London offices. The NLA is a professional association for landlords embracing their role as twenty-first century housing providers, it is fitting that it should have facilities befitting that status and of which we may all be proud. I look forward to welcoming many of you to those offices for the NLA s 2015 AGM. Carolyn Uphill Chairman CEO s Message o0o

3 After a financially challenging I faced the new financial year with a grim determination that there would be no repeat of the difficult decisions the NLA Board and I have had to make. Restructuring an organisation such as the NLA, which so many rely upon, and which does a great deal of good work is never easy. Even harder is doing so without diminishing the value offered to its members, and while I am unlikely to declare mission accomplished anytime soon. I am happy to report great strides made in our drive for efficiency and financial stability. Having cut what little fat there was to be found in the organisation and consolidated investment in essential development for the future of NLA I am delighted to report a return to operating surplus one year ahead of schedule and am optimistic about the level of growth and expansion demonstrated over the last financial year. Of course the NLA is does not operate in order to justify its own existence and this year we have also worked with more landlords than ever before; - Across the board net membership growth hit 7 per cent the highest rate in 8 years - Retention rates were running above 91 per cent, meaning more than 9 in 10 members choose to remain in membership year on year. - The NLA Advice Line took almost 40,000 calls more than 158 every working day of the year - Landlords saved money by using NLA branded services almost 23,000 times - Landlords in England and Wales used landlords.org.uk to create 33,288 Assured Shorthold Tenancy agreements In doing so, and despite budgeting to break-even, the NLA converted a 242,000 deficit last year into a surplus of 29,000. Aside from making great strides in engaging with landlords and providing practical support, the NLA has also made significant progress as a landlord advocate. Locally, the NLA s network of representatives has continued to ensure that landlords views are represented to local authorities. Throughout the course of , we lobbied dozens of town halls on issues as diverse as landlord licensing, planning, waste disposal, parking and standards to name only a few. Nationally, after many years of concerted effort, the NLA s policy team succeeded in convincing ministers to restrict councils authority to impose landlord licensing schemes and managed to contain the threat of regulation of buy-to-let mortgage products; whilst pushing hard to affect change across a range of important matters including taxation, investment, welfare policy, property conditions, tenure and energy efficiency. The end of this financial year was dominated by lobbying political parties ahead of the General Election a difficult task considering the clamour for rent controls and security of tenure - and looking ahead to the next, the challenge of working with the new government looks all the more ominous. We look towards the year with optimism, knowing that the NLA is on much more stable financial footing ready and able to support landlords. Richard Lambert Chief Executive Officer

4 Minutes of 2014 Annual General Meeting NATIONAL LANDLORDS ASSOCIATION LTD Minutes of the twelfth Annual General Meeting held at NLA, Albert Embankment, LONDON SE1 7TJ on Thursday 20th November 2014 at 3.15pm. Directors present : Patrick Jacobs, Richard Lambert, Anthony Lock, Richard Price, Anthony Richard, David Salusbury & Carolyn Uphill. There being more than 50 members present personally or by proxies received, the meeting was confirmed to be quorate. The Chairman demanded, in the interests of involving as many members as possible, a poll thus bringing the Proxy Votes into play for Items 1 to 7 inclusive. The Notice calling the meeting which was published in UK LANDLORD issue 170 circulated to Members during September was taken as read. AGENDA Item 1 Item 2 Item 3 Item 4 Item 5 Item 6 Item 7 Item 8 The Company s Annual Report and Accounts for the period ended 30 April 2014 were considered and adopted. Cobley Desborough was re-appointed as reporting accountants of the Company until the next Annual General Meeting at a fee to be agreed with the Board of Directors. RICHARD LAMBERT was re-elected as a Director RICHARD PRICE was re-elected as a Director ANTHONY RICHARD was re-elected as a Director CAROLYN UPHILL was re-elected as a Director Any Other Business : None had been raised. Carolyn Uphill, Chairman, gave an address outlining the past year and her views on future prospects for the Association. Carolyn Uphill Chairman Patrick Jacobs Company Secretary Dated 11 December 2014 Registered Office: Albert Embankment, London, SE1 7TJ The Landlords Association Ltd (company No ) & National Landlords Association Ltd (Company Number ) Both companies registered in England at Skyline House-2 nd Floor, 200 Union St, London SE1 0LX

5 Report of the Directors and Combined Unaudited Financial Statements For the Year Ended 30 April 2015 Principal Activity The principal activity of the companies in the period under review was to raise standards in the private rented sector by advising, informing, assisting and representing private residential landlords. Directors The directors shown below have held office during the whole of the period from 1 May 2014 to the date of this report. Mr D J Salusbury Mr R J Price Mr A C Lock Mr P A Jacobs (also Company Secretary) Mr R A Lambert Mr A J Richard Mrs C L Uphill Full Financial Reports for both companies can be accessed from the Members area of our website or upon request by sending a large SAE stamp affixed to Company Secretary, NLA, Skyline House -2 nd Floor, LONDON SE1 0LX. Reporting Accountants Cobley Desborough Chartered Certified Accountants Chartered Tax Advisers Artisans House, 7 Queensbridge, Northampton NN4 7BF

6 The Landlords Association Ltd And National Landlords Association Ltd Surplus and Deficit Account for the Period Ended 30 April Notes TURNOVER 3,821,716 3,330,691 Cost of sales 192, ,255 GROSS SURPLUS 3,629,003 3,154,436 Distribution costs 77,190 75,391 Administrative expenses 3,558,299 3,369,669 3,635,469 3,445,060 (6,466) (290,624) Other operating income - 4,258 OPERATING SURPLUS 2 (6,466) (286,366) Interest receivable and similar income 41,657 50,745 SURPLUS ON ORDINARY ACTIVITIES BEFORE TAXATION 35,191 (235,621) Tax on surplus on ordinary activities 3 5,468 7,351 SURPLUS FOR THE FINANCIAL YEAR AFTER TAXATION 29,723 (242,972) The notes form part of these financial statements

7 The Landlords Association Ltd And National Landlords Association Ltd Balance Sheet 30 April Notes FIXED ASSETS Tangible assets 4 174,935 89,380 Investments ,435 89,880 CURRENT ASSETS Debtors 5 1,058,756 1,049,159 Cash at bank and in hand 2,322,598 2,120,407 3,381,354 3,169,566 CREDITORS Amounts falling due within one year 6 1,668,908 1,401,287 NET CURRENT ASSETS 1,712,446 1,768,279 TOTAL ASSETS LESS CURRENT LIABILITIES 1,887,881 1,858,159 CREDITORS Amounts falling due after more than one year - - NET ASSETS 1,887,881 1,858,159 RESERVES Other reserves 539, ,223 Surplus and deficit account 7 1,486,658 1,318,936 The notes form part of these financial statements 1,887,881 1,858,159

8 The Landlords Association Ltd And National Landlords Association Ltd Notes to the Financial Statements for the Period Ended 30 April ACCOUNTING POLICIES Accounting convention The financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008). Turnover Turnover represents net invoiced sales of goods, excluding value added tax where appropriate. Tangible fixed assets Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Plant and machinery etc - 25% on cost and 20% reducing balance Pension costs and other post-retirement benefits The company operates a defined contribution pension scheme. Contributions payable to the companies pension scheme are charged to the surplus and deficit account in the period to which they relate. 2. OPERATING SURPLUS The operating surplus is stated after charging: Depreciation - owned assets 31,139 12,905 Loss on disposal of fixed assets 28,569 - Foreign exchange differences 1, Pension costs 25,280 24,603 Directors' remuneration and other benefits etc 330, , TAXATION Analysis of the tax charge The tax charge on the surplus on ordinary activities for the year was as follows: Current tax: UK corporation tax 5,468 7,351 Tax on surplus on ordinary activities 5,468 7,351

9 The Landlords Association Ltd And National Landlords Association Ltd Notes to the Financial Statements - continued for the Period Ended 30 April TANGIBLE FIXED ASSETS Plant and machinery etc COST At 1 May ,368 Additions 146,613 Disposals (109,406) At 30 April ,575 DEPRECIATION At 1 May ,988 Charge for year 31,139 Eliminated on disposal (79,487) At 30 April ,640 NET BOOK VALUE At 30 April ,935 At 30 April , DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade debtors 288, ,432 Other debtors 763, ,335 Other loans 6,551 6,392 1,058,756 1,049, CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade creditors 299, ,147 Taxation and social security 65,420 76,927 Other creditors 1,303,867 1,148,213 1,668,908 1,401,287 NLA Annual Report

10 The Landlords Association Ltd And National Landlords Association Ltd Notes to the Financial Statements - continued for the Period Ended 30 April RESERVES Surplus and deficit account At 1 May ,318,936 Surplus for the year 29,722 At 30 April ,348,658 Other reserves At 1 May ,223 At 30 April ,223 10

11 The Landlords Association Ltd And National Landlords Association Ltd Trading and Surplus and Deficit Account for the Period Ended 30 April Turnover Subscriptions 2,107,792 1,806,131 Donations 277, ,828 Publication sales 208, ,809 Advertising income 72,478 76,243 Miscellaneous income 56,016 56,770 Other commissions & fees from recognised suppliers 58,979 45,138 Conference / course fees 1,310 4,262 Investment and consultancy income 734, ,965 Commercial services 303, ,545 3,821,716 3,330,691 Cost of sales Other direct costs - 1,522 Commercial services 192, , , ,255 GROSS SURPLUS 3,629,003 3,154,436 Other income Rents received - 4,258 Bank interest 41,657 50,745 41,657 55,003 3,670,660 3,209,439 Expenditure Carriage 77,170 75,390 Protection of deposits subsidy (144) 185 Rent and services 365, ,173 Directors salaries 252, ,194 Directors social security 26,313 26,327 Directors pension 50,960 48,477 Staff, outsourcing and consultancy costs 1,577,511 1,545,087 Social security 105, ,667 Pensions 25,280 24,603 Office telephone 28,214 17,180 Postage 243, ,524 Advertising and promotion 206, ,095 Travel 38,571 57,240 Motor expenses - 1,099 Insurances 61,736 55,948 Repairs and renewals 41,027 5,782 IT costs 101,407 81,841 Office - sundry equipment 52,155 83,797 Stationery 13,477 14,542

12 The Landlords Association Ltd And National Landlords Association Ltd Trading and Surplus and Deficit Account for the Period Ended 30 April Printing 76,446 84,578 Branch support 13,171 7,720 AGM and internal meetings (323) 357 Sundry expenses 11,152 16,363 Reorganisation costs 29,866 19,567 Conferences and external meetings 20,842 7,939 Research costs 11,604 4,108 Publications and subscriptions 15,776 23,058 Fees - legal and professional 7, Accountancy fees 6,967 7,950 Bank charges 38,448 35,605 Foreign exchange losses 1, Loss on sale of tangible fixed assets 28,569 - Entertainment 1,669 1,936 Bad debts 15,292 7,121 Depreciation of tangible fixed assets Depn of equipment 31,139 12,904 Website Costs 49,390 55,893 Contribution to UIPI Brussels Office 9,156 7,032 3,635,469 3,445,060 NET DEFICIT / SURPLUS 35,191 (235,621) This page does not form part of the statutory financial statements Notes to the NLA & TLA Combined Annual Accounts ] The National Landlords Association consists of the following two companies : 2] National Landlords Association Ltd (registered in England No ) a company limited by guarantee - commenced trading on 1 August 2003, absorbing the Small Landlords Association (founded in 1973). The Members of this company are the voting members of NLA. 3] The Landlords Association Ltd (registered in England No ) a company limited by guarantee - commenced trading on 1 January 2006 as a tandem company to handle NLA s publications, courses, information promulgation and marketing. The Members of this not-for-profit company are the directors thereof. 12

13 The combined accounts therefore represent a direct comparison with prior years and give a consolidated picture of NLA s financial affairs. 4] Income for the year was 14.7% ( 475,000) higher than for the previous (12- month) year. This was accounted for in part by: Commissions & fees up 14,000 Investment & Consultancy Income up 77,000 Subscription Income up 17% (= 302,000). Expenditure was 5.7% higher: Cost of provision of commercial services increased by 18,000 Office Rent and Services rose by 29,000; Staff costs rose by 2.1% ( 32,000) mainly due to the 1.5% inflation award and increased training, & recruitment, expenditure. Conferences and External Meetings costs rose by 13,000; Advertising and Promotion rose 40,000; IT costs rose 20,000; Legal & Professional fees rose 7,000 Office Equipment and Stationery costs reduced by 32,000 though we incurred 29,000 by having to write off tenant improvements at our previous office as they had been depreciated over our anticipated occupation cut short for demolition. Our net surplus of c 35,000, reversing last year s deficit of c 236,000 [a net improvement of 270,000], has been added to Reserves which now stand at 1.89 million representing c5.4 months budgeted expenditure. 5] The subscriptions income is 17% higher than last year reflecting the additional numbers renewing and joining : our best year ever (excluding mergers). 6] Tenancy Deposit Solutions Ltd (TDSL), trading as my deposits, is a company set up to run several government-authorised deposit protection schemes. NLA is a 50% shareholder. In addition to receiving a profit-share, several of our staff undertake work for TDSL, for which the NLA is reimbursed. 7] Directors remuneration: all directors receive 5,000 pa for legal oversight, fiduciary duties, preparation and attendance at Board Meetings. Figures in the table below analyse payments to Executive Directors (marked with *), including their salaries as full-time employees, and Non-Executive Directors, who can also claim an hourly rate for specific, pre-authorised projects. Other than the CEO (who qualified for a bonus), no individual director s remuneration rate has increased by more than the 1.5% awarded Nov 2014 (1.5% in Nov 2013) to all staff for inflation. Some directors have decreased their time spent on NLA business whereas the demands on the Chairman have increased her time commitment. 13

14 Directors' Total Remuneration (includes salary, fees & pension contributions) Year ending 30 th April change 2013 Anthony Richard 9,444 9,938-5% 11,585 Anthony Lock 11,506 12,660-9% 12,783 David Salusbury 11,058 18,156-39% 33,086 Carolyn Uphill 35,479 30,270 17% 14,172 Patrick Jacobs* 67,820 66,891 1% 65,828 Richard Price* 68,484 67,545 1% 66,472 Richard Lambert* 95,724 93,287 3% 91,675 total 299, ,747 0% 295,601 8] Debtors ( 1,049,000) include: 146,000 paid after the year-end by, and an agreed loan of 250,000 to, TDSL; 260,000 prepayments and rent deposit on our London office. 263,000 owed by UKALA and 21,000 interest-free travel-loans to staff. 9] Creditors ( 1,401,000) include: 889,000 subs paid in advance; 29,000 held on trust on behalf of Dorset Residential Landlords Association; and 191,000 accruals for rent, rates and insurances, etc. 10] Bad Debts ( 7,121) reflect sales of advert space in UK LANDLORD to companies subsequently in receivership. Patrick Jacobs Director of Finance Item 3 To re-elect PATRICK JACOBS as a Director Patrick Jacobs is Director of Finance and Company Secretary of the National Landlords Association (NLA). He became a landlord in 1981 and continues to manage his portfolio in southwest London. Patrick s early career was in internal audit, where he studied accountancy and law with the Institute of Chartered Secretaries and Administrators. He then moved into industrial management before going into partnership to build a property portfolio; developing, letting and managing properties both across the UK and abroad. He became a member of the NLA in 1982, and (voluntary) Treasurer in He has worked full-time for NLA since 2003, joining the Board in He is an NLA-nominated director of my deposits. 14

15 Proxy Form [This form of Proxy may be (copied and) used by any Member of NLA Ltd. It should be returned to the Registered Office by 3.15pm on 17 November 2015.] Alternatively, you may complete an electronic version by visiting or clicking the link contained in a personalised which we will send you during October ] You can check which -or whether we hold your- address by visiting logging in, then clicking on My Profile in the top right-hand corner of screen. National Landlords Association Ltd Skyline House - 2nd Floor, 200 Union St, London, SE1 0LX I/we.....(full name) of.... (address) being a member of the above named company, HEREBY APPOINT *the Chairman of the meeting / * (insert name of proxy if you do NOT wish to so appoint the chairman of the meeting) of as my/our proxy to vote in my/our name[s] and on my/our behalf at the Annual General Meeting to be held on 19 th November 2015 and at any adjournment thereof. This form is to be used in respect of the resolutions mentioned below as follows: (*strike out whichever is not desired) Resolution [1] To adopt the company s 2015 Annual Report & Accounts Resolution [2] To re-appoint Cobley Desborough as reporting accountants Resolution [3] To re-elect PATRICK JACOBS as a Director *For /*Against *For /*Against *For /*Against [Unless otherwise instructed, the proxy may vote as he or she thinks fit or abstain from voting] Signed: Dated: / / 2015 Member Number: _ Please return in a stamped envelope & post to National Landlords Association Skyline House - 2nd Floor LONDON SE1 0LX 15