Accord Value For Money Statement 2020 - Page 7

Value For Money Statement 2020 | 6
Business Health
OPERATING MARGIN
40 %
Total
Social Housing Lettings
2020
2019
30 %
20 %
2020 2019
10 %
0
Our operating margins should be viewed in the context of our diverse business activities where some activities undertaken by the organisation generate low financial margins but have high social or environmental impact . Our overall margin for 2020 has also been impacted by the final year of the 1 % rent reduction regime implemented by the Government as part of their Welfare Reforms in 2016 and additional investment in asset management including health and safety related works . Despite these financial pressures , the margin on our social housing activity compares favourably against our peer group .
EBITDA MRI %
250 %
200 %
150 %
2020
2019
100 %
50 %
0
EBITDA MRI is a measure of our ability to generate cash through our operating activities and again the 2020 results have been impacted by the rent cuts and additional investment in our properties as the metric includes both revenue and capital maintenance costs . As a developing organisation with ambitious growth targets , the metric demonstrates our ability to comfortably meet our cost of borrowing .