TIDM15HG
RNS Number : 4894I
Great Places Housing Group Limited
12 August 2021
QUARTERLY PERFORMANCE UPDATE
This update covers performance for the quarter ending 30 June
2021
Great Places is rated G1/V1 by the Regulator of Social Housing
(RSH)
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.
The information included is based on unaudited management
accounts and other internal performance measures.
FINANCIAL PERFORMANCE: QUARTER ONE RESULTS
The management accounts of Great Places Housing Group (the
Group) show year to date surplus of GBP7.4m, GBP1.1m better than
budget. Turnover in the period (all income including property
sales) was GBP40.6m and operating surplus GBP13.8m. Turnover, net
interest costs and the surplus on property sales are all close to
budget, with the current positive variance driven by operating
costs being GBP1.0m better than budget. This is primarily due to
Development Income, driven by the timing of development
expenditure. Performance against covenants and golden rules are all
comfortably better than target.
Drawn debt (excluding bond premium, fair value adjustments and
loan fees and including finance leases) as at June 2021 was
GBP660.6m (March 2021: GBP661.1m): the movement is due to scheduled
loan repayments.
The Group's Mark to Market exposure at the end of quarter one
was GBP41.7m (March 2021: GBP41.9m). There was GBP21.0m cash
collateral posted to meet counterparties' security requirements
(March 2021: GBP21.1m).
Cash balances (excluding cash held on behalf of leaseholders)
were GBP137.8m at the end of quarter one, largely unchanged since
March 2021 due to Homes England grant received (for Great Places
and delivery partners) offset by the construction spend during
quarter one. Undrawn bank and other capital facilities immediately
available were GBP128.7m, of which GBP120.8m 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 have eleven CSFs for 2021/22, set in March 2021. Two of these
are new additions - Higher Risk Building Safety, which replaces
Trusted Stock Condition Surveys as a CSF, and a Data Completeness
CSF, a composite measure looking at our data completeness over five
key data areas (Customer, Tenancy, Property, Blocks &
Colleagues), added to support our Data Action Plan.
We currently have 23 higher risk buildings which require an
intrusive survey and possible consequential work to be completed.
The target for this year is to complete 12 surveys, with one survey
having been completed during quarter one. As at June 2021 we have a
data completeness of 60%, in line with our phased monthly target.
The year-end target is to have 93% data completeness.
These are both on track, alongside six other CSFs, with two of
these currently achieving their year-end stretch targets: Colleague
Engagement and Average re-let time.
Colleague Engagement has increased from 74% to 82% following our
latest Pulse survey, above the stretch target of 80%. Our average
re-let time was 19.2 days, better than our stretch target of 21.0
days.
Whist performance over quarter one has been largely positive,
there are certain areas such as development completions, customer
satisfaction and households into work, training & volunteering
where there are some early warnings around performance against our
targets.
There were 106 Development Completions during quarter one, lower
than the target of 188. Completions are running behind the original
forecast, mostly as a result of quality issues on plots which we
are working closely with contractors to put right and deliver high
quality properties. As at the end of June we had 1,425 homes
onsite.
At the end of quarter one we have helped 152 households into
employment, training & volunteering, behind the phased target
for this stage of the year. We expect to see engagement with
Employment and Skills services increase over the next quarter
following the easing of restrictions.
This year, our Customer Satisfaction CSF has changed from a
year-to-date figure to a rolling 12 month figure, and remains a
composite score based on all our customer groups. At the end of
June we had a customer satisfaction of 7.06, a decrease from 7.25
at year-end and below the CSF target of 7.30. This decrease is
consistent with the Institute of Customer Service's latest UK
Satisfaction Index which showed a decrease in the Public Services
Local sector with housing associations seeing the biggest decrease
in satisfaction decreasing from 72.5 to 68.8 over the last 12
months.
The CSFs currently on track are average days sickness per
employee, % of digitally active tenants, group surplus and arrears,
which was 4.0% in June 2021.
CORPORATE NEWS
These stories illustrate some of our recent activities,
particularly in terms of Environmental, Social and Governance.
ENVIRONMENTAL
Great Places teams up with BRE Group on research to tackle
carbon emissions
Great Places Housing Group has teamed with building research
specialists BRE Group on a project to develop a strategy for its
affordable development programme to be zero carbon ready by 2038.
As part of the project, BRE, who provide research and advice to a
range of bodies including the UK Government, will undertake a
comprehensive analysis of Great Places' current operations and
practices to understand what net zero carbon will mean for the
team. The aim is to identify the changes needed and provide a range
of practical recommendations that the housing group can implement
to reduce the carbon footprint of its future affordable development
programme. The move is also in line with Great Places' recently
launched three-year Carbon Management Strategy, which outlines how
the group will reduce its carbon emissions by 15% year on year,
with the aim of being a net zero-carbon business by 2038.
Bowland House, Blackburn refurbishment
The refurbishment of Bowland House is one of the first major
projects to commence on a tower block following the production of
the draft Building Safety Bill. We are now six months in and works
are progressing well. Our contractor Casey has worked
collaboratively with both the local authority's building control
department and Lancashire Fire and Rescue Service to identify the
most appropriate approach to ensure we are compliant with the
requirements detailed in this bill. You can read the full story on
the Great Places website, Latest News here.
SOCIAL
Great Places joins national initiative to provide homes for
rough sleepers
Great Places Housing Group has joined other housing providers to
offer homes as part of the Government backed UK-wide investment
programme to create dedicated housing to help rough sleepers to
rebuild their lives away from the streets. As part of the GBP212
million Rough Sleeping Accommodation Programme we have worked with
Greater Manchester Combined Authority, Manchester City Council and
Salford City Council to make nine homes available from its existing
and newly acquired stock. The homes will enable people who sleep
rough, or at risk of sleeping rough, to be rehoused in secure,
long-term accommodation. Through the scheme, the rough sleepers
will also be supported by specialist staff to access the help they
need, such as support for mental health or drug and alcohol issues,
so they can move towards training and work and finding a permanent
home.
How we are working to make our Anchor Neighbourhoods great
places to live
Over the last year we have been busy working with customers and
partners on a variety of initiatives and we've now put together an
update to share how we are working towards the vision of making our
anchor neighbourhoods great places to live. We published updates to
Neighbourhood Plans for each of the four Anchor Neighbourhoods, you
can find them on our website here.
New Integrated Housing and Mental Health Support for Vulnerable
Tenants
Great Places has joined other leading housing providers to
partner with Greater Manchester Mental Health NHS Foundation Trust
(GMMH) to pilot a new project that will deliver vital mental health
support to tenants in their homes. The integrated care partnership
is a collaborative approach to address health inequalities and is
piloting a focused model of individualised care to support tenants
with escalating mental health concerns.
GOVERNANCE
Regulator for Social Housing In Depth Assessment (IDA)
Following an In-Depth Assessment (IDA), Great Places Housing
Group has received a top rating of G1/V1 from the Regulator of
Social Housing (RSH). The regulatory judgment can be found on the
GOV.UK website, Housing Regulation section. This is an upgrade from
the G1/V2 interim judgment in April 2020 due to the merger.
The wide-ranging IDA process was carried out entirely virtually
and during the assessment the IDA considered the excellent
integration progress, alongside the ongoing provision of
high-quality services for our customers, and the continuing
delivery of our operating principles of financial strength and good
governance. This resulted in an upgrade to the top rating of
G1/V1.
Chief Executive Matthew Harrison said: "The hard work and
dedication of our 800 colleagues, who have worked tirelessly in
such challenging circumstances during the pandemic, has been
instrumental in helping us to build upon our values, and achieve
our vision of Great Homes, Great Communities, Great People.
Year end audit 2020/21
The year end audit of statutory accounts is drawing to a close
with no material issues identified. Final approval is expected in
August and adoption at the AGM in September 2021.
Board Member and Director update
Three new Board Members were successfully appointed following a
recruitment exercise in summer 2021 in line with our Board
Succession, Recruitment and Development Policy. Patrick Ricketts
and Nahim Ruhi-Khan will also be members of the Audit and Assurance
Committee and Sandra Palmer will be a member of the Remuneration
and Appraisal Committee. Board profiles are available on our
website: Great Places Housing Group > About us > Board
members. Their appointments were approved at the July Board meeting
and will be ratified at the AGM in September 2021.
Additionally, we have appointed a new Director of Finance, Julie
Lynch, who will join Great Places this autumn.
Great Places shortlisted for awards
Inside Housing Development Awards, November 2021:
-- The Affordable Development Team's work with ENGIE, Rotherham
Council, Sanctuary Homes and Wise Living on GBP28m redevelopment of
a brownfield site at Whinney Hill and Chesterhill Avenue, in the
Thrybergh area, has been shortlisted for a best partnership
award.
-- The Environmental Team's partnership with Knauf Energy
Solutions (KES) and Knauf Insulation Northern Europe (KINE) on the
renovation of 28 of our homes in Trafford is shortlisted for the
inaugural Climate Change Retrofit Project of the Year.
The winners of the Inside Housing awards will be announced at a
ceremony on Wednesday 4 November.
Women in Housing awards, September 2021: Anila Khalid, Head of
Neighbourhoods, has been shortlisted in the Woman of the year
(tenant/customer focus) category.
Housing Hero awards, September 2021: the Greater Manchester
Housing First pilot has been shortlisted in the Support and Care
team of the year category for its incredible work across all ten
boroughs in Greater Manchester.
Affordable homes plans submitted for landmark Ancoats Dispensary
site
Great Places Housing Group has submitted plans to redevelop the
iconic Ancoats Dispensary. In partnership with Manchester City
Council and part funded by Homes England, plans are to redevelop
what remains of the Grade 2 listed former hospital into a mixture
of 39 one and two bed apartments which will be available for
affordable rent. The plans also look to compliment Great Places'
existing homes and its ongoing commitment to the development of
Ancoats and New Islington area in Manchester.
Mayor of Stockport breaks ground on Great Places' GBP24million
Heaton Mersey development
Mayor of Stockport, Councillor Adrian Nottingham, officially
marked the start of construction work at Great Places GBP24m
flagship housing development at the former Cranford Golf Centre in
Heaton Mersey, Stockport, which has been vacant since 2014. The new
development will provide 106 new homes, including a mixture of two,
three, and four-bed affordable houses and apartments for social
rent, shared ownership (through Plumlife) and a further five homes
for market sale (through Cube Homes). We're delighted to bring this
flagship development to Stockport, our first in the borough since
our merger with Equity Housing Group last year.
New GBP4.5million development in Higher Blackley
Plans are progressing on a new development of 25 new affordable
homes on Victoria Avenue in Higher Blackley following Great Places'
acquisition of the site this month. Great Places Housing Group's
GBP4.5m development, delivered in partnership with Manchester City
Council, housing developer Mulbury and part funded by Homes
England, looks to transform the site that has been derelict for the
past three years into much needed affordable homes. The site will
be a mixture of two and three-bedroom homes for social and
affordable rent built to meet Manchester Space Standards which look
to ensure the delivery of high quality residential development as
part of successful and sustainable neighbourhoods across
Manchester.
Forge New Homes breaks ground at its first site
Our Sheffield joint venture, Forge New Homes, and Caddick
Construction have officially started on site of the new 98-home The
Hedgerows development in Pilsley, North Derbyshire. The seven-acre
scheme is situated near Clay Cross and Chesterfield and due for
completion in summer 2023. The development will also offer 30 much
needed affordable housing and shared ownership homes within a mix
of two, three and four bedroom properties, including bungalows. The
GBP12m project was made possible through the joint venture with
Great Places and four other Sheffield housing providers - the
Guinness Partnership, South Yorkshire Housing Association, Together
Housing and Yorkshire Housing. Full story on our website here.
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
may differ materially. No statement in the report is intended to be
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statements if our expectations change in response to events. This
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END
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