TIDM15HG
RNS Number : 3675Y
Great Places Housing Group Limited
12 May 2021
QUARTERLY PERFORMANCE UPDATE
This update covers performance for the year ending 31 March
2021.
Our Performance Updates are aimed at ensuring our investors and
other stakeholders receive regular, timely information regarding
the performance of the Group. We will publish these reports on a
quarterly basis and will produce them within six weeks of the
relevant quarter end.
These results are published in advance of the Statutory Accounts
for the year ended 31 March 2021 which will be issued following the
AGM in September. The information included is based on unaudited
management accounts and other internal performance measures and is
subject to concluding the routine annual accounting adjustments as
well as any adjustments that arise as a result of the external
audit process. The final year end figures which will be used in the
Financial Statements will include adjustments for pensions,
derivatives, tax and the fair value gain resulting from the
Transfer of Engagements of Equity Housing Group to Great
Places.
FINANCIAL PERFORMANCE: QUARTER FOUR RESULTS
The management accounts of Great Places Housing Group (the
Group) show full year surplus of GBP15.3m, GBP0.7m better than
budget. Turnover in the period (all income including property
sales) was GBP137.5m and operating surplus GBP40.6m.
The main savings against budget were net interest costs GBP2.0m,
due to low interest rates and effective management of liquid cash
and revolving credit facilities; and property sales surpluses
overall GBP1.1m higher than budget.
Shared ownership and market sale performance was strong,
exceeding the budgeted sales volumes, turnover and surplus, with
very little unsold stock at the year end. Other turnover was
GBP1.9m under budget due to a number of factors including changes
to the profiling of the Housing First project (with equivalent
reductions in operating costs), some development handovers moved
into 2021/22, , and some post-merger rent adjustments that were
Board approved in 2020.
Operating cost variances included savings in central services
like insurance and frontline service costs, offset by accelerated
major repair costs for building safety where we have successfully
progressed works to a number of schemes more quickly than we had
felt achievable when setting the budget, bringing forward revenue
expenditure planned in 2021/22. With less development there was a
reduced amount of development income (which would credit the
I&E). We have increased our bad debt provision to reflect the
challenging economic environment facing our customers, adding costs
of GBP0.5m for the full year, despite really strong arrears
performance.
Drawn debt (excluding bond premium, fair value adjustments and
loan fees and including finance leases) as at March 2021 was
GBP661.1m (December 2020: GBP584.2m). Great Places sold GBP70m
retained bonds in January 2021 at an all in rate of 2.0%, thus
increasing drawn debt by the nominal bond value GBP70m, and at the
same time we repaid all drawn RCFs. In March we drew GBP38m from a
bank loan due to the availability period ending. Otherwise the
movement is due to scheduled loan repayments.
The Group's Mark to Market exposure at the end of quarter four
was GBP41.9m, decreasing almost GBP10m during the financial year.
This was because of an increase in both Interest Rate Swap rates
and Gilt Yields: the largest movements were in February 2021. There
was GBP21.1m cash collateral posted to meet counterparties'
security requirements (March 2020: GBP28.5m).
Cash balances (excluding cash held on behalf of leaseholders)
were GBP135.4m at the end of quarter four, mainly due to the
retained bond sale in January 2021. Undrawn bank and other capital
facilities immediately available were GBP138.6m, of which GBP122.2m
is fully secured. Our internal financial "Golden Rules" around
interest cover, gearing and operating margin were all met at the
end of the period.
OPERATIONAL PERFORMANCE
Our performance management centres around our Critical Success
Factors ("CSFs") which are designed to focus us on the delivery of
our Corporate Plan, and particularly our vision of "Great Homes,
Great Communities, Great People". We had ten CSFs for 2020/21, set
in March 2020 and with a couple of them revised in quarter two
following a Board review of the Covid operating environment.
Eight CSFs achieved their targets at the end of 2020/21, with
three of these achieving their stretch targets: arrears, average
re-let time and % of digitally active tenants.
Arrears ended the year at 3.8%, (quarter three: 4.2%), better
than the stretch target of 4.0%. Our performance is testament to
the commitment of the Neighbourhoods team.
Average re-let time ended the year at 21.9 days (stretch target
23 days). This is the lowest level reported during 2020-21 with the
positive trend from quarter three continuing over quarter four.
The % of digitally active tenants was 45.3% at the end of March
(stretch target 45%) with performance steadily improving over the
year. A digitally active tenant is defined as a tenant whose
contacts over the last 12 months are 50% or more through our
digital channels.
The two CSF's that did not reach target were Development
Completions and Households into Work, Training & Volunteering -
both as a result of the ongoing impact of COVID.
Development Completions were 292 (CSF target: 400) plus 33 more
than were started by Equity pre merger, so not included in the CSF.
This target will be met in quarter one of 2021/22, which aligns
with the COVID related closure in 2020 and the resulting delays to
completions. At the end of March we had 36 'live' sites with 1,455
new homes being built.
Sales have been strong, with high demand for our shared
ownership and outright sale products, as can be seen from the
financial performance, with the majority of the surplus being from
new homes. We began the new financial year in a good position with
94 reservations following busy off-plan launches in March.
Despite the challenging circumstances, Great Places this
financial year has helped 701 households into work, training and
volunteering (target 750). As part of our COVID response, the
Community Investment Team redirected resources to help customers
struggling during the pandemic through our Hardship Fund. This
hardship fund has seen 293 applications across the course of
2020/21 with 249 applications approved and GBP23,077 given directly
to our customers.
CSFs that met the 2020/21 targets were: Trusted Stock Condition
surveys; average days sickness per employee; colleague engagement;
group surplus; and overall satisfaction.
Two new CSFs have been approved for 2021/22 to reflect the
importance of Building Safety and Data.
CORPORATE NEWS
These stories illustrate some of our recent activities,
particularly in terms of Environmental, Social and Governance.
ENVIRONMENTAL
Great Places launches carbon reduction plan
Great Places used Earth Day, the annual international event to
demonstrate support for environmental protection, to launch its
three-year plan outlining how it will work towards realising its
ambition of becoming a net zero carbon business. The Group's new
Carbon Management Strategy sets out how the group will reduce its
carbon emissions by 15% year on year and highlights key areas of
the business where it will focus its efforts in the first three
years. These include its affordable development and investment
programmes, business operations and waste. This will include a
research project looking into the challenges and cost implications
for its development programme to achieve the Government's Future
Homes Standard and develop zero carbon ready homes.
SOCIAL
Our new Customer Scrutiny Group is launched
Since our merger with Equity Housing Group took place on 1 April
2020 we brought together the two customer scrutiny groups from the
legacy organisations under the 'Insight' banner. The Insight group
provides an opportunity for customers to help shape our services
and hold us to account for our decisions. It is made up of
customers who volunteer to take a detailed look at how Great Places
can improve services. Scrutiny reviews are carried out for areas
that typically impact a majority of Great Places customers, which
if improved will add value to the customer experience and
satisfaction. Early in 2021 Insight will initially focus on helping
us respond to the recent social housing white paper, The Charter
for Social Housing Residents, and provide some scrutiny over our
corporate planning priorities.
Arts project for LGBT History Month
A film featuring Bill Moss, a customer from our Openshaw Court
scheme, was aired as part of a series of short films screened by
HOME Manchester to coincide with LGBT History Month. The series
'Real to Real - Personal Tales from the LGBT Community' was shown
on Thursday 25 February. The film 'Lifesolation' was produced by
local artist Anna Raczynski in collaboration with Bill as part of a
wider 'Back in the Closet' project supported by Houseproud NW,
Greater Manchester Combined Authority and the LGBT Foundation. The
project aims to raise visibility of LGBT+ communities in retirement
living and care settings. Four Greater Manchester housing
associations have taken part including Great Places. The screening
also featured a second Great Places' film "Franz Schubert - An
Enigma" featuring another resident from the scheme. Both films were
shot in collaboration with customers over several months.
GOVERNANCE
Corporate plan 2021-2023
The Great Places Corporate Plan 2021-2023 outlines our ambitions
and priorities; it is a two-year plan with a focus on delivering
stability, collaboration and ambition. This will be years four and
five of our 10-year ambitions set out in the Corporate plan
2018.
Business plan and stress testing Board approved
The Great Places Board approved the annual business plan and
stress testing in April 2021 and it will be published in our
website shortly.
Board succession planning
We have commenced the process of recruiting up to three new
Board members as part of our carefully thought through Board
succession plan. Details of these opportunities can be found on the
Campbell Tickell website jobs page.
Belle Vue development is off and running
Great Places is set to build 130 affordable homes in conjunction
with developers Countryside on the former Belle Vue Greyhound
Stadium in East Manchester. The building work follows planning
permission being issued in November 2020 for the creation of 80
apartments and 167 houses, which includes 130 affordable homes
through Great Places. The new development will feature one, two,
three and four-bedroom homes, in a scheme that not only provides a
viable alternative use for the site but also provides much-needed
affordable housing for local people. All homes at Belle Vue Place
have been designed in accordance with the National Described Space
Standards, creating a range of new house types that are spacious
and maximise natural light.
New Wybourn Community Centre to be named in honour of local
councillor
Plans are underway for Great Places to pay tribute to local
councillor Pat Midgley, who sadly passed away in March last year,
by naming a new community centre in the Wybourn neighbourhood in
Sheffield in her honour. It is hoped that the GBP2.5 million centre
on Manor Oaks Road, Wybourn will become a fitting tribute to the
local councillor, providing a community hub for residents in the
neighbourhood. It will comprise of two low rise blocks containing a
mixture of 12 apartments and ground floor community centre. The new
development is located at the heart of Wybourn and is situated
close to the area's Children's centre and Wybourn Community Primary
School. It is intended that it will become a focal point for the
neighbourhood and will host a community café and space for a range
of community groups, events, education courses and other engagement
activities.
Iconic Beswick Co-op gets a GBP300k facelift
Longsight's iconic Co-op Building has recently had a GBP300k
update as part of Great Places' annual investment works programme.
Originally home to the Beswick branch of the co-operative movement
the building, it now houses 19 flats, 3 retail outlets and
Northmoor Community Association's (NCA) Community Centre which
offers a wide range of services and activities for residents. The
Grade II listed building, originally built by the cooperative
society in 1912, has undergone significant repairs to external
façade. The five-month renovation project, delivered in partnership
with Casey and IGL Surveying Ltd, also saw the refurbishment of 103
Northmoor Road which housed NCA's Social Enterprise Community
Laundrette. This will now be their 'Northmoor Hub' where residents
will be able to get information and support on a range of issues
including health and wellbeing, welfare and benefits advice and
employment and skills. It is hoped that works will help Northmoor
Community Association provide an even stronger support offer for
local residents as the neighbourhood looks to emerge from the
current pandemic. There are also plans for a community event to
celebrate the recent updates to the centre later in the year.
Directors at Great Places
There have been a few recent changes at Great Places within the
Directors' team. The Director of Independence & Wellbeing
(supported housing) Sally Watts left in April and the Director of
Finance Kal Kay will be leaving in the coming months. Three new
appointments took place: Director of Assurance, Sharon Brown, took
on the role in April 2021 and we have a new Director of People
Elaine Johnson and a Director of Independence & Wellbeing
Andrew Gray starting in early summer. We wish all our Directors,
old and new, success and happiness in their new roles.
Our first all-colleague virtual conference
In May 2021 we hosted our first ever virtual all-colleague
event. This was the first opportunity for us to come together as
one since the transfer of engagements of Equity into Great Places
on 1(st) April 2020. We launched our GREATER Together operating
culture and shared highlights from the year, giving recognition and
thanks to our colleagues; we marked the progress made on the COSMOS
integration programme of Great Places and Equity; and celebrated
the annual colleague awards. This ceremony was the perfect chance
for people to get together and recognise those who are constantly
demonstrating our new cultural behaviours and going above and
beyond for our customers and colleagues.
FEEDBACK
We welcome feedback on our performance update. Please contact
Denise Campbell, Head of Treasury at
denise.campbell@greatplaces.org.uk
The information included within this report is for information
purposes only. The Financial results quoted are unaudited. The
report may contain forward looking statements and actual outcomes
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END
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