TABLE OF CONTENTS. Group Statements. Report of the Board and Financial Statements. Foreword by the Chair 2

TABLE OF CONTENTS Group Statements Foreword by the Chair 2 Board, Senior Management Team and Advisors 3 Report of the Board and Financial Statements Strategic Report 4 Directors Report 11 Statement of Comprehensive Income 16 Statement of Financial Position 17 Statement of Changes in Reserves 18 Cash Flow Statement 19 Notes to the Financial Statements 20

FOREWORD BY THE CHAIR This is my second Contour Property Services Annual Report as Chair. The last year has been extremely busy for CPS and for Symphony Housing Group. Both internally and externally the most common factor has been the need to either plan for or respond to change. CPS, while budgeting for a small deficit this year, achieved a profit of 163,000 before exceptional pension charges and tax which demonstrates CPS has turned a corner towards being a more successful and financially viable leasehold management company. In the current economic climate the necessity of capturing the most from limited resources is paramount. The service charges and management fees for CPS are extremely price sensitive with very low margins for surplus, waste or error. In this business sector for CPS to retain its existing customer base, and to attract new opportunities, it will need to deliver genuine efficiencies that impact favourably on the level of service charges for each development to demonstrate value. CPS will therefore continue to commit to delivering Value for Money. Complying and meeting lease obligations in a consistent way both for CPS and leaseholders is now embedded in our commercial approach to delivery of services The single largest investment in service improvement with dedicated ITC for commercial residential management has started The potential for progressive digital service delivery in the immediate future is now a reality for CPS The staff team is demonstrating commitment, energy and stability in service delivery with a future focus on commercial awareness Rationalisation of services with Atrium is established, aligned to building a single organisation at Group level CPS over the next year will continue to contribute to the aim and objectives of Symphony Housing Group in building a new single organisation. The close collaboration with Atrium is evidence of a new approach to commercial activity for Symphony Housing and these opportunities and challenges in the ever changing housing market will reward the organisation through working as one team. I would like to take this opportunity to thank the CPS Board of Management and the CPS and Atrium staff for their commitment and enthusiasm. We look forward to the significant developments next year both for Group and CPS and do so with confidence and determination to succeed. In developing a robust framework for greater success the following headlines demonstrate the path to continuous improvement and reliability. CPS budgeted for a small loss and achieved a reasonable profit Bad debts - a legacy problem - has now been addressed with a continual reduction in arrears Financial transparency and greater control of scheme budgets continues to improve Sharon Grover Chair of Contour Property Services Board of Management 2

BOARD, SENIOR MANAGEMENT TEAM & ADVISORS Members of the Board Sharon Grover (Chair) Tony Dunne (Managing Director) Jeanette Davies Asim Chaudhri Christopher Barnes Executive Team Tony Dunne (Managing Director of CPS) Lee Allsopp (Group Financial Systems & Planning Manager) Stephen Gallaghan (Commercial Development Manager) Michelle Howard (Leasehold Services Manager) Principal Solicitors Brabners Chaffe Street LLP 58 King Street Manchester M2 4LQ Trowers & Hamlin LLP Heron House Albert Square Manchester M2 5HD Anthony Collins LLP 134 Edmund Street Birmingham B3 2ES External auditors KPMG LLP 1 St Peter s Square Manchester M2 3AE Company Secretariat Audrey Davidson (Company Secretary) Tony Dunne (Deputy Company Secretary) Principal Bankers National Westminster Plc. 33 Piccadilly Manchester M1 1LR 3

STRATEGIC REPORT Introduction The Board presents the Contour Property Services (CPS) Annual Report (the Annual Report ) and the audited financial statements for the year ended 31 March 2016. STRATEGIC REPORT Background to CPS CPS was established in 2005 as a result of the merger between Moorside Homes and Central Housing Association. CPS operates across the North West mainly focused within the Greater Manchester conurbation but also delivers services in Merseyside, Cheshire and Lancashire. CPS role was created to provide management services to leaseholders and to act as a vehicle for the Group s non-charitable activities. CPS currently manages 4,026 properties through the provision of leaseholder services to private owners.. Activities CPS manages 4,026 properties (as at 31 March 2016) located in the North West of England. Its principal activity is to provide leaseholder services to private owners and the provision of shared ownership services to its sister organisation Contour Homes. Background to Symphony Housing Group Symphony Housing Group (the Group) was formed through the amalgamation of Vicinity Housing Group and Contour Housing Group on 1 April 2011. The Group is one of the largest housing and regeneration organisations operating in the North West. CPS is one of 9 member organisations that, through a federated model, provide services to over 40,000 homes. Legal structure CPS is a non-charitable Registered Society under the Cooperative and Community Benefit Societies Act 2014. 4

STRATEGIC REPORT STRATEGIC REPORT (Continued) Vision and strategic objectives The shared vision of CPS and Symphony Housing Group is: To be a strong, cohesive partnership that uses our individual and combined strengths to deliver real, lasting benefits for our tenants and the wider communities in which we work. This vision and strategic direction is supported by six strategic themes to which all members of Symphony Housing Group are aligned. These are: Core Values We are fully committed to the values of the organisation to support us in delivering future success. Our core values are: Best for Customers Best for Communities and Neighbourhoods Integrity Flexibility Best for People Best for Partnerships Responsibility Collaboration Best for the Future Best for Value for Money Inspiration Customer focus Each objective has medium term goals to be delivered over coming years along with our immediate targets for improvement to be delivered in 2016/17. Our employees must be equipped to take forward our strategic direction and face the challenges of a changeable future. 5

STRATEGIC REPORT STRATEGIC REPORT (Continued) Risk and uncertainty Effective risk management is vital to the success of any organisation. CPS s risk map details those risks that could prevent the business from achieving its strategic objectives. The Group Audit, Risk and Assurance Committee (GARAC) reviews and scrutinises the risk maps, on a quarterly basis, for all Group entities. The Board considers the following risks the most likely to affect future performance and our ability to achieve our five year plan. Risk Unclear transitional arrangements, change and poor performance Comment and risk mitigation Mobilisation planning Strategic review outcomes being implemented Direct line management responsibility and accountability Additional staff resources Complaints transparency Risk Poor management of large developments New structure and additional staff resources fails to deliver Failure to comply with legislation and leases Comment and risk mitigation MOT framework profile developments New service standards and service plans Review insurance procurement Introduction of multi-disciplinary teams Performance monitoring reports to Board New specialist team (debt control) Business priorities New multi-disciplinary model New service plans Embracing complaints practice and reporting Feedback measures for customers New measures for performance monitoring Additional staff resources Risk assessment of lease agreements Categorisation of contractual relations to shape services New income streams to be established to retain staffing resources Multi-disciplinary team/model Health and safety embedded in work practices Failure to achieve financial viability New income streams to be established and implemented Robust systems of cost control to be implemented Greater transparency of cost structure direct and indirect VfM measures to be introduced 6

STRATEGIC REPORT STRATEGIC REPORT (Continued) Risk Internal procedures and processes not meeting customer expectations Comment and risk mitigation Introduction of multi-disciplinary teams Review of ITC, CRM systems Introduction of new service plans Embracing complaints practice and reporting New KPI measures for monitoring performance Risk Stock condition analysis needs against sinking funds resources Comment and risk mitigation New asset management staff New Asset Management Strategy Service charges to reflect cyclical and investment needs, process start within business plan period Multi-disciplinary service model Limited staff skills New accountable organisational structure New service plans Staff appraisal and development framework Multi-disciplinary delivery model Regular staff support (one to ones) Poor intelligence on schemes New service standards of consistent working practices Review of purpose and practice of site based staff Teams to collectively work on data collection by discipline, management, asset management and finance New performance framework including MOT profile of individual developments and services Unrealistic expectations for CPS New 5 year business plan Group management team approve strategic review outcomes Group director lead on change process Poor services Increase First Tier Tribunals and challenges Risk assessment of lease agreements/ compliance Service plans to reflect consistent service delivery Line management structure accountable reporting Multi-disciplinary management leadership and service model Failure on health and safety practice New Asset Management Strategy for CPS operations Compliance team leader to co-ordinate service Staff training (including caretakers on site) Business assurance report to GARAC Clear work stream and intelligence in place Regular reports to CPS Board 7

STRATEGIC REPORT Treasury management CPS defines its treasury management activities as the management of CPS s cash flows, its banking, money market and capital market transactions; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks. At the 31 March 2016 CPS had no external borrowings. are mainly held in trust for our existing leasehold customers and are specific to individual leasehold schemes. All CPS surplus cash balances are invested in accordance with a prudent Credit and Counterparty Policy. Investments are time limited and are restricted to institutions or money market funds that meet minimum credit criteria. Treasury risk management CPS regards the successful identification, monitoring and control of risk to be the prime criteria by which the effectiveness of its treasury management activities will be measured. Accordingly, the analysis and reporting of treasury management activities focuses on their risk implications for CPS. CPS holds money in Trust for its existing leasehold customers which is specific reserves (sinking funds) to individual schemes. It also acknowledges that effective treasury management will provide support towards the achievement of its business and services objectives. It is therefore committed to the principles of achieving best value in treasury management, and to employing suitable performance measurement techniques, within the context of effective risk management. Funding and liquidity CPS is currently financed through retained reserves. CPS currently has no external loans or approved facilities. CPS s policy is not to hold significant cash balances, although as a result of cash flow timing and borrowing decisions, they do occur. As at 31 March 2016 CPS held 4.9m (2015 4.9m) in cash or short term cash investment. These funds Corporate governance The Board complies with the National Housing Federation Code of Governance and is committed to upholding the Code of Practice for Board Members. The Board meets frequently to determine policy and to monitor the performance. There are no areas of non-compliance. The Group operates an Audit Risk and Assurance Committee which includes Members from subsidiary Boards, including the Association. As well as reporting to the Group Board, its minutes are received by all member Boards and an annual report on activity goes to each Board. The Committee also receives reports from Group Business Assurance which validates and advises on performance and the effectiveness of internal controls. The Group also operates an Appointment and Remuneration Committee which has responsibility for ensuring that each Board has effective Governance arrangements and that these are fully implemented. Executive team CPS is governed by a Board of non-executive members who delegate day-today operational control to the CPS executive team. The Board meets on a regular basis. The executive team meet on a regular basis and recommend policy decisions to the Board. 8

DIRECTORS REPORT STRATEGIC REPORT (Continued) Financial performance in the year Statement of Comprehensive Income () 2016 Restated 2015 Restated 2014 2013 2012 Turnover 1,033 949 738 684 1,109 Operating costs and cost of sales (984) (936) (1,151) (581) (838) Operating surplus 49 13 (413) 103 271 Net interest charge - - (4) (4) (3) Gift Aid - - - - (289) Tax 43-24 (24) - Surplus for the year 92 13 (393) 75 (21) Statement of Financial Position () Housing properties at cost less depreciation 462 462 462 462 462 Other fixed assets and investments 828 830 833 835 837 Net current assets 5,045 4,799 4,674 4,392 3,482 6,335 6,091 5,969 5,689 4,781 Loans due after one year - - - - - Other long term liabilities 4,986 4,834 4,725 4,052 3,219 Revenue reserves 1,349 1,257 1,244 1,637 1,562 6,335 6,091 5,969 5,689 4,781 Financial Statistics Operating margin 4.7% 1.4% (56.0%) 15.1% 24.4% Net margin 8.9% 1.4% (53.3%) 11.0% (1.9%) Return on Net Assets (RONA) 1.5% 0.2% (6.6%) 1.3% (0.4%) Return on Capital Employed (ROCE) 1.5% 0.2% (6.9%) 1.8% 5.7% EBITDA 4.9% 1.6% (55.7%) 15.4% 24.3% 9

DIRECTORS REPORT STRATEGIC REPORT (Continued) Turnover increased by 8.9% to 1,033k (2015: 949k) and the operating surplus was 49k (2015: surplus of 13k). In terms of cash flow CPS generated a net cash outflow of 1k (2015: inflow of 329k). Operating review New operational arrangements were introduced in April 2013 involving additional dedicated resources with the overall aim to ensure the business remains successful and continues to improve in the services it provides to its customers. For a second successive year we are seeing performance improve as a result of that investment. CPS operates within the federated structure of the Symphony Housing Group. It remains an organisation that provides genuine choice for people who aspire to have an equity stake in their home. The governance of CPS has been significantly strengthened over this period with new members who bring skills and experience with a commercial insight reflecting CPS s market place which is completely different to mainstream registered providers who are the primary membership of the Symphony Housing Group. The changes that we have and will continue to introduce look to dramatically improve key areas of our operational performance. CPS s aim is to continuously improve its services in areas of work such as; income management, Health & Safety, customer relations and major investment programmes which we predict need to be programmed and aligned to the financial resources held in trust available from scheme sinking funds. The coming year will see the implementation of new leasehold management software which will further enhance and develop CPS s performance. This combination of stronger governance, financial transparency, increased focus, and effective performance in meeting customers expectations will ensure the future success of CPS. The Managing Director ensures the effective performance and successful service delivery of CPS and collaborates with the Group to meet the shared objectives of the Group. The Managing Director comes together with the Group s Senior Management Team, led by the Chief Executive, to deliver objectives and reach the Group s potential for the collective benefits of the Group and its wider customers. The Strategic Report was approved by the Board on 18 th July 2016 and signed on its behalf by: Audrey Davidson Company Secretary 10

DIRECTORS REPORT Statement of responsibilities of the Board The Board is responsible for preparing the Board s Report and the financial statements in accordance with applicable law and regulations. Co-operative and Community Benefit Society legislation requires the Board to prepare financial statements for each financial year. Under those regulations the Board have elected to prepare the financial statements in accordance with UK Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. The financial statements are required by law to give a true and fair view of the state of affairs of the Association and of the income and expenditure for that period. In preparing these financial statements, the Board is required to: select suitable accounting policies and then apply them consistently. make judgements and estimates that are reasonable and prudent. state whether applicable UK Accounting Standards and the Statement of Recommended Practice have been followed, subject to any material departures disclosed and explained in the financial statements, and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Association will continue in business. The Board is responsible for the maintenance and integrity of the corporate and financial information included on the Associations website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Statement of Internal controls The Board acknowledges its ultimate responsibility for ensuring that it has in place a system of internal control and risk management that is appropriate to the business environment in which it operates and for review of the effectiveness of that system during the year. The Group Audit, Risk and Assurance Committee is responsible to the Board for monitoring this system and reporting on its effectiveness. Internal controls are designed to identify and manage rather than eliminate risks which may prevent an organisation from achieving its objectives. The system of internal control is designed to manage risk and give reasonable rather than absolute assurance with respect to: The achievement of key business objectives and expected outcomes The preparation and reliability of financial and operational information used within the organisation and for publication The Board is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Association, and enable it to ensure that its financial statements comply with the Cooperative and Community Benefit Societies Act 2014. The Board has general responsibility for taking such steps as are reasonably open to it to safeguard the assets of the Association and to prevent and detect fraud and other irregularities. The maintenance of proper accounting and management records The safeguarding of assets against unauthorised use or disposition. 11

DIRECTORS REPORT Internal assurance activities The process followed to identify, evaluate and manage significant risks faced by CPS is ongoing and has been in place during the past financial year and up to the date of the annual report and accounts. Internal audit assurance Symphony Housing Group s in-house internal audit function is used to provide assurance on the operation of the control framework and the management of risk. Internal audit are not responsible for the design and construction of control systems but provide an assessment as to their effectiveness. The Group Audit, Risk and Assurance Committee oversees the work of internal auditors and reviews reports issued by them. The Committee is responsible for monitoring the actions identified as a result of internal audit findings that are implemented in a timely fashion. External audit assurance The work of the external auditors provides some independent assurance over the adequacy of the internal control environment. The Group receives a management letter from the external auditors which identifies any internal control weaknesses. The Board itself and through the activities of the Group Audit, Risk and Assurance Committee has reviewed the outcome of external audit work and the external audit management letter. Fraud The Board has a current policy on fraud which includes both fraud prevention and detection. A register of frauds and losses is maintained and is reported to the Group Audit, Risk and Assurance Committee. Review of risk management and governance arrangements Risk management arrangements should mitigate against risks materialising. During the 2015/16 financial year, risks in relation to how the Group ensures there is adequate compliance with statutory health and safety responsibilities were highlighted within the Group. Further investigation by the Group has led to the identification of control failures which increase the risk of issues materialising. Following identification, the Group has established, with independent advice, appropriate improvement plans which include a range of actions to address identified control issues and improve risk management, governance and assurance arrangements. The Group notified the regulator of its concerns and in early July 2016 it received a regulatory judgement that the Group is non-compliant with the governance requirements set out in the Governance and Viability Standard and as a result, the Group s governance rating has been downgraded to G3. The Group s Viability rating remains unchanged at V1. 12

DIRECTORS REPORT Conclusion The Board acknowledges that their responsibility applies to the full range of risks and controls across all of its activities, and is to ensure that planned remedial and improvement action agreed is implemented in a timely and comprehensive manner. The Board has considered the effectiveness of the system of internal control in place in the year ended 31 March 2016. The Board acknowledges that internal control and risk management arrangements were not working adequately across the entire Symphony Housing Group. We are implementing appropriate improvement plans agreed with the regulator and we are satisfied that this will address the issues identified within our systems of internal control, governance and risk management arrangements. Going concern The Board confirms it has a reasonable expectation that the Association has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Statement of compliance The Board report and financial statements have been prepared in accordance with applicable reporting standards and legislation. Health and safety Health and Safety is an integral part of the proper management of all the undertakings over which CPS has control. CPS promotes safe practices and achieves continuous improvement through regular performance reporting to the CPS Board. CPS is committed to ensuring: The health, safety and welfare of all our tenants, leaseholders, staff, contractors and third parties involved in the operations of the Association The safety of the general public who use or have access to premises or sites under our control The way in which we operate contributes to the wellbeing of the community at large Donations The Board has made no charitable or political donations during the year. Employee involvement The Board recognises that its employees are its greatest asset and that it cannot achieve its aims and objectives without their involvement and contribution towards running the organisation. The Association communicates and consults with its employees through a variety of structures including regular team briefings, employee emails, newsletters and trade union meetings (consultation through staff forum). CPS is committed to developing a culture in which equality and diversity is integral to all of its activities, including the recruitment and development of staff. We aim to achieve an inclusive culture that respects and values differences and eliminates discrimination in all areas. 13

DIRECTORS REPORT Corporate social responsibility The Board is committed to being a socially responsible organisation, managing in a socially responsible way, and to ensuring adherence to legislation and to ethical operation. Disclosure of information to auditors So far as each of the directors of the Association is aware, at the time this report is approved: There is no relevant information which the Group s auditor is unaware; and The directors have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the Group s auditor is aware of that information. Independent auditors A resolution to re-appoint KPMG LLP as the organisation s auditors will be proposed at the forthcoming Annual General Meeting. KPMG have indicated their willingness to continue in office should the resolution concerning their reappointment be agreed at the AGM. By order of the Board Audrey Davidson Company Secretary 18 July 2016 14

INDEPENDENT AUDITOR S REPORT Independent auditor s report to Contour Property Services Limited We have audited the financial statements of Contour Property Services Limited for the year ended 31 March 2016 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. This report is made solely to the association in accordance with section 87 of the Co-operative and Community Benefit Societies Act 2014. Our audit work has been undertaken so that we might state to the association those matters we are required to state to it 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 association as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of the Board and auditor As more fully explained in the Statement of Board s Responsibilities set out on page 11, the association s Board is responsible for the preparation of financial statements which 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 Auditing Practices Board s Ethical Standards for Auditors. Scope of the audit of the financial statements 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 Opinion on financial statements In our opinion the financial statements: give a true and fair view, in accordance with UK Generally Accepted Accounting Practice, of the state of affairs of the association as at 31 st March 2016 and of its income and expenditure for the year then ended; and comply with the requirements of the Co-operative and Community Benefit Societies Act 2014. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Cooperative and Community Benefit Societies Act 2014 requires us to report to you if, in our opinion: the association has not kept proper books of account; or the association has not maintained a satisfactory system of control over transactions; or the financial statements are not in agreement with the association s books of account; or we have not received all the information and explanations we need for our audit. Hywel Jones (Senior Statutory Auditor) for and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants, 1 St Peter s Square, Manchester, M2 3AE 15

FINANCIAL STATEMENTS Statement of Comprehensive Income For the Year Ended 31st March 2016 Notes 2016 2015 Restated Turnover 2 1,033 949 Cost of sales 2 - - Operating costs 2 (984) (936) Operating Surplus / (deficit) 49 13 Interest receivable and similar income - - Interest payable and similar charges 5 - - Surplus / (deficit) on ordinary activities before taxation 49 13 Taxation on surplus on ordinary activities 6 43 - Surplus / (deficit) for the year after taxation 92 13 Historical cost surpluses and deficits are the same as those shown in the Statement of Comprehensive Income. The movement on reserves is shown in note 14 to the accounts. All activities in the Statement of Comprehensive Income relate to continuing operations. All movements on reserves are shown in the Statement of Comprehensive Income above. There are no recognised gains or losses for the current or preceding financial years other than as stated in the Statement of Comprehensive Income above. Accordingly, a statement of Other Comprehensive Income has not been presented. 16

FINANCIAL STATEMENTS Statement of Financial Position As at 31st March 2016 Notes 2016 Restated Tangible Fixed Assets Housing Properties 7 462 462 Depreciation 7 - - 2015 462 462 Other Tangible Fixed Assets 8 828 830 1,290 1,292 Current Assets Debtors due Within One Year 9 989 716 Cash at Bank and in Hand 4,895 4,896 5,884 5,612 Creditors Amounts Falling Due Within One Year 10 (839) (813) Net Current Assets 5,045 4,799 Total Assets less Current Liabilities 6,335 6,091 Creditors falling due in more than one year 12 4,986 4,834 Capital and Reserves Non-Equity Share Capital 13 - - Revenue Reserves 14 1,349 1,257 Shareholder Funds 6,335 6,091 These financial statements were approved by the Board and signed on its behalf on 18 th July 2016 by: 17

FINANCIAL STATEMENTS Statement of Changes in Reserves As at 31st March 2016 Notes Non-Equity Share Capital Revenue Reserves Total Reserves At 1 April 2014 as previously reported - 1,455 1,455 Effects of adoption of FRS102 24 - (211) (211) At 1 April 2014 as restated - 1,244 1,244 Total Comprehensive Income for the previous period Surplus for the year as previously reported - 11 11 Effects of adoption of FRS102-2 2 At 31 March 2015 as restated - 1,257 1,257 Total Comprehensive Income for the period Surplus for the year from statement of comprehensive income - 92 42 Balance at 31 March 2016-1,349 1,299 18

FINANCIAL STATEMENTS Cash Flow Statement For the year ended 31st March 2016 Net Cash Inflow from Operating Activities 18 (1) 329 Taxation Corporation Tax Paid - - Return on Investments and Servicing of Finance Gift Aid Paid - - Interest Received - - Interest Paid - - Capital Expenditure and Financial Investment Purchase and Construction of Housing Properties - - Sales of Housing Properties - - Purchase of Other Fixed Assets - - Management of Liquid Resources - - Decrease / (Increase) in Short Term Deposits - - Net Cash Outflow before Financing (1) 329 Financing Loans Received - - Loans Repaid - - Net cash Inflow from Financing - - (Decrease) / Increase in Cash 19 (1) 329 Notes 2016 2015 19

FINANCIAL STATEMENTS 1. Accounting Policies Basis of accounting The financial statements of the Association are prepared under the historical cost convention in accordance with applicable United Kingdom accounting standards and the Statement of Recommended Practice: accounting by Registered Social Landlords, update issued in 2010, and comply with the Accounting Direction for Private Registered Providers of Social Housing 2012. The accounts have been prepared on a going concern basis and all accounting policies have been applied consistently from the previous financial year to the current one. Turnover Turnover comprises management income receivable in the year and other services included at the invoiced value (excluding VAT) of goods and services supplied in the year; VAT recoverable from HM Customs and Excise and revenue grants. Other tangible fixed assets Tangible fixed assets are stated at cost less accumulated depreciation and any provision for impairment. Depreciation is charged on a straight line basis over the expected economic useful lives to write them down to their estimated residual value as shown below: Asset Type Range of: Short leasehold property Furniture, fixtures, fittings and scheme equipment Computers and office equipment Motor vehicles Service charge scheme assets Offices and commercial properties Freehold properties Freehold land over life of lease Apportionment of management expenses a range between 5 and 10 years a range between 3 and 5 years a range between 4 and 5 years over the expected life of the component a range between 50 and 60 years 10 years (other offices & commercial property) no depreciation Direct administration and operating costs have been apportioned to the relevant sections of the income and expenditure account on the basis of costs of the Association s staff directly engaged on the operation dealt with in the accounts. Rent and Service charge losses It is CPS s policy to write off rent and service charge losses in the year in which they occur, once they have been identified as irrecoverable. 20

NOTES TO THE FINANCIAL STATEMENTS 2. Turnover, Operating Costs and Operating Surplus Turnover Cost of Sales Operating costs 2016 2015 Operating Cost of Operating Operating Surplus Turnover Sales Costs Surplus Restated Restated Non-Social Housing Activities Management Services 839 - (805) 34 635 - (681) (46) Ground Rents and 3rd party fees 74 - (69) 5 93 - (17) 76 Other Income 120 - (110) 10 221 - (238) (17) Totals 1,033 - (984) 49 949 - (936) 13 3. Operating Surplus Operating surplus is after charging: 2016 2015 Depreciation of Other Fixed Assets 2 3 Surplus/Deficit on Disposal of Fixed Assets - - Auditor s remuneration (excluding VAT): In Their Capacity As Auditors 4 5 6 8 4. Employee Costs All staff are employed by Symphony Housing Group and all salary costs relating to these employees are paid by Symphony Housing Group. Contour Property Services Limited repays this to Symphony Housing Group through a management charge which also covers time spent carrying out Contour Property Services work by other staff on joint contracts. 21

NOTES TO THE FINANCIAL STATEMENTS 5. Interest Payable and Similar Charges Interest Payable on Bank and Building Society Loans - - Other Loans - - Non Utilisation Fees - - 2016 2015 - - Capitalised Interest - - - - 22

NOTES TO THE FINANCIAL STATEMENTS 6. Taxation Total tax expense recognised in the Statement of Comprehensive Income 2016 Current Tax 2015 Restated Current tax on income for the year 7,287 - Adjustment in respect of previous years - - Total current tax 7,287 - Deferred tax (See note 11) Origination and reversal of timing differences (50,306) - Adjustment in respect of previous years -- - Change in tax rate - - Total deferred tax (50,306) - Tax on profit on ordinary activities (43,019) - All amounts are recognised in the Statement of Comprehensive Income 23

NOTES TO THE FINANCIAL STATEMENTS 6. Taxation (continued) Analysis of Current tax in the Statement of Comprehensive Income 2015 2016 Restated UK Corporation Tax 7,287 - Double tax relief - - Foreign tax - - 7,287 - Reconciliation of effective tax rate Profit for the year 91,913 13,349 Total tax expense (43,019) - Profit/(Loss) excluding taxation 48,894 13,349 Tax using the UK Corporation tax rate of 20% (2015: 21%) 9,779 2,803 Expenses not deductible for tax purposes 472 494 Tax rate differences on deferred tax 5,589 (156) Deferred tax not recognised (See note 11) (58,859) (3,141) Total tax expense included in the Statement of Comprehensive Income (43,019) - Reductions in the UK corporation tax rate from 23% to 21% (effective from 1 April 2014) and 20% (effective from 1 April 2015) were substantively enacted on 2 July 2013. Further reductions to 19% (effective from 1 April 2017) and to 18% (effective 1 April 2020) were substantively enacted on 26 October 2015. The recent March 2016 Budget announced that the rate effective from 1 April 2020 will further reduce to 17%. This will reduce the Associaiton s future current tax charge accordingly. The deferred tax assets as at 31 March 2016 have been calculated based on the rate of 18% substantively enacted at this year end date. 24

NOTES TO THE FINANCIAL STATEMENTS 7. Fixed Assets Housing Properties Shared Ownership Total 2016 Total 2015 Cost At 1 April 462 462 462 Additions - - - Disposals - - - Write off - - - At 31 March 462 462 462 Depreciation At 1 April - - - Charge in the period - - - At 31 March - - - Net Book Value At 1 April 462 462 462 At 31 March 462 462 462 Freehold 462 462 462 Long leasehold - - - At 31 March 462 462 462 25

NOTES TO THE FINANCIAL STATEMENTS 8. Fixed Assets Other Assets Freehold Land and Buildings Total 2016 Total 2015 Cost At 1 April 861 861 861 Additions - - - Disposals - - - Transfers - - - At 31 March 861 861 861 Depreciation At 1 April (31) (31) (28) Charge for the year (2) (2) (3) Disposals - - - Impairment - - - At 31 March (33) (33) (31) Net Book Value At 1 April 830 830 833 At 31 March 828 828 830 26

NOTES TO THE FINANCIAL STATEMENTS 9. Debtors Trade Debtors 488 180 Deferred Corporation Tax (See note 11) 50 - Current Corporation Tax - 24 Amounts Owed by Group Companies 12 7 Amounts Owed by Leaseholders 407 505 Prepayments and Sundry Debtors 32 - Total Debtors 989 716 2016 2015 10. Creditors: Amounts Falling Due Within One Year Trade Creditors 137 43 Corporation Tax 7 - Amounts Owed to Leaseholders 156 121 Amounts Owed to Group Companies 539 649 Total Creditors 839 813 2016 2015 Restated 27

NOTES TO THE FINANCIAL STATEMENTS 11. Deferred tax assets and liabilities Assets Liabilities Net 2016 2015 2016 2015 2016 2015 Deferred tax assets and liabilities are attributable to the following: Accelerated capital allowances - - - - - - Employee benefits - - - - - - Unused tax losses - - - - - - Other short term timing differences (50,306) - - - (50,306) - Tax (assets)/liabilities (50,306) - - - (50,306) - Net of tax liabilities/(assets) - - - - - - Net tax (assets)/liabilities (50,306) - - - (50,306) - In Addition to the deferred tax asset above, the Association has additional unrecognised gross tax losses of nil (2015: 294,296) in respect of losses carried forward and short term timing differences. 28

NOTES TO THE FINANCIAL STATEMENTS 12. Creditors falling due in more than one year Restated Provisions for Leaseholder Funds 4,654 4,538 Pension Creditor to Symphony Housing Group 180 - At 1 April 4,834 4,538 2016 2015 Movement on Leaseholder Funds 82 116 Movement on Pension Creditor 70 180 152 296 Provision for Leaseholder Funds 4,736 4,654 Pension Creditor to Symphony Housing Group 250 180 At 31 March 4,986 4,834 13. Non-equity Share Capital Shares of 1 each fully paid and issued At start of the year 4 24 Shares issued in the year - - Cancelled during the year - (20) At 31 March 4 4 2016 2015 CPS s shares are not transferable or redeemable. Payments of dividends or other benefits are forbidden by CPS s rules. 29

NOTES TO THE FINANCIAL STATEMENTS 14. General Reserves 2016 2015 Restated At 1 April 1,257 1,244 Surplus / (Deficit) for the year 92 13 At 31 March 1,349 1,257 15. Registration CPS is a non-charitable Society under the Cooperative and Community Benefit Societies Act 2014 and is registered with the Financial Conduct Authority with a registration number of 23975R. CPS de-registered with the Homes and Communities Agency in the year. 16. Ultimate Parent Undertaking The ultimate controlling party is Symphony Housing Group Limited. Symphony Housing Group is a Registered Social Landlord, registration number 31216R. Its registered office is: Symphony Housing Group Limited 12 Hanover Street Liverpool L1 4AA 30

NOTES TO THE FINANCIAL STATEMENTS 17. Transactions with related parties During the year the company transacted with its parent organisation Symphony Housing Group Limited and other members of the Group. Transactions with regulated Group members 2016 Liverpool Housing Trust Ltd - 8 Contour Homes Ltd 106 67 Symphony Housing Group 792 763 Total 898 838 2015 All costs are recharged at cost and are apportioned in accordance with an agreed Group recharge methodology. The recharge methodology recharges costs mainly on the basis of time, headcount or service usage. 18. Reconciliation of Operating Surplus to Net Cash Inflow from Operating Activities 2016 2015 Restated Operating Surplus/(Deficit) 49 13 Depreciation Charges 2 2 Tax Charge 43 - Other Adjustments (18) - Group Charge for Pension Revaluation 97 - Decrease / (Increase) in Debtors (273) 56 Increase / (Decrease) in Creditors 18 141 (Decrease) / Increase in Monies Held in Trust 81 117 (1) 329 31

NOTES TO THE FINANCIAL STATEMENTS 19. Analysis of Changes in Net Debt At 1 April 2015 Cash Flows Non-cash changes At 31 March 2016 Cash at Bank and in Hand 4,896 (1) - 4,895 20. Reconciliation of Net Cash Inflow to Movement in Net Debt 2016 2015 Increase/(Decrease) in Cash in the Year (1) 329 Cash Used to Increase/(decrease) Liquid Resources - - Changes in Net Debt from Cash Flows (1) 329 Non-cash Movement - - Net Debt at 1 April 4,896 4,567 Net Debt at 31 March 4,895 4,896 21. Leasehold Management Stock The number of properties in management at the end of the year were: 2016 2015 Stock managed for owner occupiers 4,026 4,055 22. Contingent liabilities There are no contingent liabilities. 32

NOTES TO THE FINANCIAL STATEMENTS 23. Post Balance Sheet Events There were no significant post Balance Sheet events requiring adjustment to, or disclosure in, the financial statements. 24. Transition to FRS 102 The Association has adopted FRS102 for the year ended 31 March 2016 and has restated the comparative prior year amounts. As previously stated At 1 April 2014 At 31 March 2015 Effect of transition FRS 102 (as restated) As previously stated Effect of transition FRS 102 (as restated) Tangible fixed assets housing properties 462-462 462-462 Other tangible fixed assets 833-833 830-830 1,295-1,295 1,292-1,292 Current assets Trade and other debtors 771-771 716-716 Cash and cash equivalents 4,567-4,567 4,896-4,896 5,338-5,338 5,612-5,612 Creditors: amounts falling due within one year (640) (24) (664) (783) (30) (813) Net current assets 4,698 (24) 4,674 4,829 (30) 4,799 Total assets less current liabilities 5,993 (24) 5,969 6,121 (30) 6,091 33

NOTES TO THE FINANCIAL STATEMENTS 24. Transition to FRS 102 (continued) As previously stated Effect of transition At 1 April 2014 At 31 March 2015 FRS 102 (as restated) As previously stated Effect of transition FRS 102 (as restated) Creditors: amounts falling due after more than one year Funds held on behalf of Leaseholders (4,538) - (4,538) (4,655) - (4,655) Charges Due to Group in relation to Pension Liability - (187) (187) - (179) (179) (4,538) (187) (4,725) (4,655) (179) (4,834) Total net assets 1,455 (211) 1,244 1,466 (209) 1,257 Capital and reserves Non-equity share capital - - - - - - Revenue reserves 1,455 (211) 1,244 1,466 (209) 1,257 Total capital and reserves 1,455 (211) 1,244 1,466 (209) 1,257 34