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Metropolitan Thames Valley (MTVH) has cut back discretionary spending and recruitment in a bid to protect its finances from the impact of the coronavirus pandemic.
The G15 landlord’s full-year accounts show a hit to its operating margin and reveal a number of steps it has taken to mitigate the impact of the COVID-19 crisis, including greater monitoring of resources and staff levels.
In a risk register included in the accounts, MTVH highlighted coronavirus as threat to cashflow and profit due to the inability to sell homes or collect rents.
In response, the 57,000-home landlord announced a “curtailment of discretionary spend and recruitment”.
MTVH said: “Recruitment to non-essential vacancies was halted and recruitment to any key vacancies had to be approved by the executive team.
“Other discretionary spend (eg travel and consultancy) was also reduced during lockdown.”
Due to concerns about how the pandemic would impact staff levels, the association began monitoring the amount of staff on a weekly basis as well as carrying out weekly cashflow forecasting and recording PPE stock levels daily.
The landlord also established a “cross-functional advisory group” and held more frequent board and executive meetings.
The report showed that MTVH has prepared for negative house price inflation due to potential “adverse market conditions” influenced by Brexit uncertainty and COVID-19. In response, MTVH said it would run stress-tests and conduct regular forecast reviews.
MTVH received a G1/V2 rating from the English Regulator of Social Housing, while credit agency Standard & Poor’s gave it an ‘A-’ rating.