TIDM15HG
RNS Number : 6467B
Great Places Housing Group Limited
14 February 2022
QUARTERLY PERFORMANCE UPDATE
This update covers performance for the quarter ending 31
December 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 THREE RESULTS
The management accounts of Great Places Housing Group (the
Group) show a year to date surplus of GBP16.5m, GBP1.1m better than
budget. Turnover in the period (including 1(st) tranche and
outright property sales) was GBP117.8m and operating surplus was
GBP35.8m. There was GBP0.9m less rental income and GBP2.0m more
surplus on property sales (including fixed asset sales). Lower
rental income in the period is mainly due delayed handovers on the
development programme. Higher surplus on property sales mainly
relates to shared ownership staircasing, Right To Acquires and
sales to other RPs.
In December 2021 Board approved a revised projection for the
year end, a surplus of GBP19.5m, compared to the GBP20.0m budgeted
surplus to take into account the delayed development handovers and
increased surplus on property sales referenced above.
Drawn debt (excluding bond premium, fair value adjustments and
loan fees and including finance leases) as at December 2021 was
GBP652.9m (March 2021: GBP661.1m) with the movement due to
scheduled loan repayments.
The Group's Mark to Market exposure was GBP37.0m (March 2021:
GBP41.9m) with GBP17.1m cash collateral posted to meet
counterparties' security requirements (March 2021: GBP21.1m).
Cash balances (excluding cash held on behalf of leaseholders)
were GBP111.1m (March 2021: GBP135.4m) with undrawn bank facilities
immediately available of 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 for 2021/22 centres around eleven
Critical Success Factors ("CSFs") which are designed to focus us on
the delivery of the Corporate Plan, and particularly our vision of
"Great Homes, Great Communities, Great People".
At end of quarter three, seven CSFs are broadly on track to
achieve target or stretch target, with the early warning monitor
helping to identify potential issues.
Overall performance against the CSFs continues to be affected by
the ongoing issues related to the Covid pandemic and the current
economic volatility with four CSFs likely to miss the year end
target: Development Completions; Overall Customer Satisfaction;
Colleague Sickness; and Group Surplus.
-- A total of 388 new development properties were completed in
the first three quarters of the year, however this is below the
phased target set in March 2021 and reflects continued delivery
challenges around labour, materials , approvals and land
registration. Demand for our shared ownership and outright sales
products remains incredibly strong.
-- Customer Satisfaction was 7.1/10 against a target of 7.3/10
with services impacted by increased sickness as a result of Covid
with average days sickness per employee in December being 9.8 days
(target 8.6 days).
-- Group surplus is projected at GBP19.5m against a CSF of
GBP20.0m, as noted above in the Financial Performance section.
CORPORATE NEWS
These stories illustrate some of our recent activities,
particularly in terms of Environmental, Social and Governance.
ENVIRONMENTAL
Bowland House, Blackburn, tower block refurbishment
The Blackburn property is undergoing a GBP3.4m refurbishment and
works are almost complete. External render has significantly
improved the aesthetics of the tower, and the insulation from it
has improved thermal efficiency in the flats. Winter gardens have
been installed, enclosing what was previously open balconies and
creating space and warmth. Other works include internal fire
stopping works, smoke and heat detectors, a new sprinkler system
and evacuation alarm system, new windows, entrance doors, and hot
water cylinders installed to every flat.
Carbon Literacy Training update
The Great Places Carbon Literacy training, developed in-house,
is an important part of our carbon reduction plan and we deliver it
to companies both in and outside the housing sector. During quarter
three we provided training to Leeds & Yorkshire Housing
Association (LYHA), Cheshire East Council, Trafford Council
leaders, Reigate and Banstead senior leaders, and Irwell Valley
Homes and we have been developing training for Cheshire Fire
Service. Glowing feedback was received for our training course and
our trainers!
SOCIAL
European Social Fund GBP350k to support employment in
Lancashire
Great Places secured three years of European Social Fund grant
from the Department for Work and Pensions to build on the success
of our existing More Positive Together service in Lancashire. The
new three-year contract is worth GBP350,000 and will see the
delivery of in-work support for vulnerable customers, helping them
to sustain their employment. The wider More Positive Together
project has been running since 2017 and supports those that are
furthest from the labour market: more than 50% of the participants
are Great Places customers.
Customer Annual Report 2021
The Customer Annual Report 2021 is where you can see our
highlights of this year , read about our ambitious 'one
organisation' focus for 2022, and view how we have performed in the
areas that matter most to our customers.
Our customer magazine 'My Great Place'
In December we published the latest edition of our customer
magazine 'My Great Place'. It showcases all the hard work we've
been doing in our regions over the past few months and how we've
been supporting the communities in the different regions in which
we work.
Anchor Neighbourhoods plans
Our vision for each of our anchor neighbourhoods is to protect
and enhance their identity, meeting the housing needs of local
people. We promote and support financial independence for residents
and the community, helping to make our anchor neighbourhoods great
places to live. In December we published updates to our
neighbourhood plans and you can find them here.
Northmoor Hub new unit tenants announced
Community organisations have moved into the two refurbished
retail units in the Northmoor Hub, our community space in one of
our anchor neighbourhoods in Manchester. Levenshulme Youth Project
has been established in Longsight and Levenshulme for over 10 years
and will be using the unit to create a safe, caring, youth-led
space where young people can learn, develop, and build towards a
brighter future. Longsight Project Space will be an accessible
space with activities and exhibitions created for, by and with the
local community.
GOVERNANCE
Moody's credit rating A3
Moody's re-confirmed Great Places A3 Credit rating in February
2022, with a Baseline Credit Assessment of baa1. Their credit
opinion identifies Great Places' strengths as good liquidity;
stable financial performance; and supportive institutional
framework. It identifies the credit challenges as exposure to
market sales (including affordable housing shared ownership and
outright market sale); and increasing debt to fund the development
programme, but remaining in line with peers.
GBP13.2million development set for Catcliffe, near Rotherham
Great Places and Strata have started work on a new development
of 76 affordable homes in Catcliffe following planning approval in
July. The GBP13.2 million scheme, the inaugural partnership project
for Great Places and Strata, will transform redundant scrub land
into a high-quality, new housing development for local people. The
scheme will provide a range of homes for Affordable Rent and Shared
Ownership and drive tenure diversification in the area, It will
comprise a mix of two-bed apartments, alongside one, two, three and
four-bed houses with 29 available for shared ownership and 47 for
affordable rent. The development is due to take around two years to
complete. For more details on the Catcliffe scheme see here.
Cotton mill site transformed into 99 homes in Royton, Oldham
Great Places Housing Group, in partnership with Kellen Homes,
has planning approved to transform the 5.5-acre former Vernon Works
mill site in Royton into 99 new homes. The 116-year-old cotton mill
will be replaced by a mix of 12 Affordable Rent and 37 Shared
Ownership homes delivered by Great Places and 50 market sale homes
delivered by Kellen Homes. They will feature a mix of two, three
and four bedroom homes with front and rear gardens and off-street
parking. The development is Great Places' first with the
Warrington-based developer. For more details on the Vernon Gardens
scheme see here.
Appointment of Beever & Struthers as External Auditors
In December 2021 Great Places appointed new external auditors,
Beever & Struthers following a robust procurement process. This
is to be approved at an Extraordinary General Meeting in quarter
four.
New Executive Director of Growth
Great Places has successfully appointed Helen Spencer as our
Executive Director of Growth. As Great Places continues to grow, we
have created this new role which reflects our ambitions to build
many new homes over the next few years including the delivery of
our new Homes England Strategic Partnership contract. Helen, who
was previously Director of Development, has responsibility for
affordable development, sales and business growth.
New Cube Homes Limited Board member
In quarter four a new Board member joined Cube Homes Limited
("Cube", the market sales subsidiary of Great Places). John
Williamson has extensive experience of delivering Open Market,
Partnership and Regeneration schemes. He spent 15 years as MD of
Barratt Partnerships, securing public land to deliver over 18,000
homes. Prior to this he was Development and Planning Director for
the Liverpool Housing Action Trust. He is also a Non-Executive
Director with Caledonian Modular Ltd, a leading off-site
manufacturer and constructor of institutional and residential
buildings.
FEEDBACK
We welcome feedback on our performance update. Please contact
Phil Elvy, Executive Director of Finance, at
communications@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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