TIDM15HG
RNS Number : 0613W
Great Places Housing Group Limited
15 August 2022
QUARTERLY PERFORMANCE UPDATE
Covering performance for the year ending 30 June 2022
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 GBP6.0m (budget GBP6.6m).
Turnover in the period (all income including 1st tranche and
outright property sales) was GBP40.0m, GBP0.8m better than budget
mainly because of higher sale proceeds. Operating surplus was
GBP12.7m, GBP0.5m lower than budget: the key drivers were increased
bad debt provisions due to higher arrears, and lower development
income due to delays in development expenditure.
Drawn debt (excluding bond premium, other non cash balances and
loan fees, and including finance leases) as at June 2022 was
GBP652.1m (March 2022: GBP652.2m) with the movement due to
scheduled loan repayments.
The Group's Mark to Market exposure was GBP19.5m (March 2022:
GBP28.1m) with GBP5.1m cash collateral posted to meet
counterparties' security requirements (March 2022: GBP8.0m).
Cash balances (excluding cash held on behalf of leaseholders)
were GBP113.8m (March 2022: GBP119.5m) with undrawn bank facilities
immediately available of GBP143.8m, which are now fully secured
after a release and recharge exercise following the RBS/NatWest
loan amendment in March.
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 2022/23 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".
Four targets were achieved in quarter one: Higher Risk Building
Safety; % of Digitally Active Customers; Households into Work,
Training & Volunteering; and Data Completeness.
The seven CSFs that missed target for quarter one are as
follows:
-- Group surplus was GBP6.0m, GBP0.6m lower than target. This is
explained in the Financial Performance section above.
-- Colleague Engagement in the latest pulse survey results in
July show 78%, 1% below target. The CSF measure is based on two
specific questions in the survey, and other responses overall show
an improvement.
-- % Days Lost Due to Sickness in June was 3.9%, higher than the
target of 3.5%. Even though the percentage of days lost is higher
than target, the average number of sickness days per employee has
improved since the start of the year, the % result being based on
working days excluding bank holidays (two in June 22).
-- Arrears were 4.8% in June, higher than the 4.0% monthly
target. As widely forecast across the sector we have seen our own
current arrears performance worsen since year-end. Some of this
increase will inevitably be due to customer ability to pay rent
given the cost of living crisis. Rent setting in 2022/23 will
include customer insight, payment patterns and the arrears impact
of cost of living pressure on customers. We will also review
performance and the CSF target mid-year when we have a clearer
understanding of customer behaviour, benchmarking and our own
performance.
-- Average re-let time was 26.5 days, higher than the target of
22.0 days. Whilst performance is missing target we are expecting
that performance can get back on target. Recent observation work
has highlighted increasing confidence in use of the new housing
management system (Aareon QL), which has taken time to embed during
quarter one.
-- Customer satisfaction was 6.51 in June 22 based on a 12 month
rolling period. Reduced satisfaction is playing out in the external
environment. Housemark's Monthly Pulse Survey report has identified
that satisfaction levels continue to fall and forecast that due to
"on-going economic factors" there will be generally lower
satisfaction rates for the current financial year. Actions being
taken to increase overall satisfaction are:
o Digital offer enhanced;
o Repairs improvement plan implemented;
o Embed new structures with enhanced support and training;
and
o Customer communications focus.
-- Development completions included in the CSF were 77 in
quarter one, behind target. We are driving each scheme hard to
maximise completions but this continues to be challenging given the
continued price rises and delivery challenges around labour,
materials, approvals and land registration. We are deep diving into
the detail to help us identify where we can unlock the blockages
and escalating our concerns with contractors. Demand for our shared
ownership and outright sales products remains incredibly strong
with 28 shared ownership and also 28 market sales year to date. We
had just two unsold/unreserved shared ownership homes at the end of
July and no unsold/unreserved market sale homes.
CORPORATE NEWS
These stories illustrate some of our recent activities,
particularly in terms of Environmental, Social and Governance.
ENVIRONMENTAL
Great Places earns Platinum Carbon Literate Organisation
status
Great Places Housing Group continues to lead the way across
Greater Manchester with its Carbon Literacy training programme and
is now the first housing association in the UK to be granted
Platinum Carbon Literate Organisation status by the environmental
charity, the Carbon Literacy Trust. The award is recognition for
the business' commitment to training colleagues in reducing their
carbon footprint and for taking 80% of colleagues through its
training.
This is a significant milestone for Great Places who continue to
be seen as sector influencers and experts in the Carbon Literacy
field - now delivering training to other housing associations,
local authorities and a range of other organisations including
Transport for Greater Manchester, Groundwork GM, University of
Salford, City of Trees, and BBC North West.
SOCIAL
Housing First celebrates three year milestone
The Greater Manchester Housing First pilot, led by Great Places,
recently celebrated three years of accomplishment at a special
event at Gorton Monastery. People who work on the frontline joined
stakeholders, including Mayor of Greater Manchester Andy Burnham to
celebrate supporting 330 of the most vulnerable people in the
region into a home of their own - with a tenancy sustainment rate
of 82%. The event was a chance to reflect on the achievements of
the first three years of the pilot, celebrate everything that had
been accomplished and the plan for the next two years of the
programme.
Great Places part of new GM RSAP partnership
Great Places, along with RP partners Riverside and Jigsaw, has
been selected to deliver the second phase of the GM Rough Sleeper
Accommodation Programme (RSAP) by the Greater Manchester Combined
Authority. Great Places and Jigsaw already deliver the first phase
of the programme, with 41 people being supported from 2021 across
Greater Manchester, and the partnership can now continue to build
upon the progress made across the region. The extended second phase
will deliver the programme to more than 60 people until 2025. The
RSAP programme is in response to the activities surrounding the
Covid-19 pandemic and the impact this has had on people rough
sleeping. Keyworkers will have caseloads of between 10 and 12
people to ensure people on the programme have access to the support
and services they need.
Great Places community centre and 12 apartments in Sheffield
We recently celebrated completion of our new community centre
and 12 apartments for affordable rent in our Wybourn anchor
neighbourhood in Sheffield. The GBP2.4m development was officially
opened in July with a Community Fun Day. Named in honour of late
Councillor Pat Midgley. The facility will host a community café and
provides space for a range of community groups and activities.
Situated in the heart of Wybourn - an inner city neighbourhood
comprising of 5,230 residents in 1,962 households - the development
was created through consultation with the local community and in
partnership with Manor & Castle Development Trust and the
Corner House Steering Group.
GOVERNANCE
Year end and audit
The statutory accounts of the Great Places Housing Group and
subsidiaries for 2022/23 have been approved by their Boards. The
results were in line with our expectations for the year and
consistent with the figures reported in our Quarter four
Performance Update. The financial statements will be published on
our website after adoption at the AGM in September.
South Yorkshire Housing Partnership
Great Places has joined 10 other housing associations in
launching a new partnership aiming to raise the profile and
combined contribution of housing associations working across the
South Yorkshire region. The South Yorkshire Housing Partnership is
working with the South Yorkshire Mayoral Combined Authority (SYMCA)
to deliver five key priorities:
-- The supply of affordable homes
-- The roadmap to net zero carbon
-- Housing and health
-- Economic growth and employment
-- Preventing homelessness
Great Places' CEO Matthew Harrison, who will chair the new
partnership, said: "We want to collaborate and look at how we can
tackle the housing issues faced by the region, such as the supply
of new homes and the need to decarbonise existing housing stock to
help tackle the climate emergency. By working together, we can
achieve a greater impact and bring our housing expertise together
to benefit local people and communities in South Yorkshire."
GBP24 million flagship Stockport development
The Mayor of Stockport, Councillor Adrian Nottingham has paid a
return visit to view progress at Great Places' GBP24 million
flagship housing development at the former Cranford Golf Centre in
Heaton Mersey, Stockport. The Poplars, delivered in partnership
with Breck Homes, will provide 106 new homes, a mixture of two,
three, and four-bed affordable houses and apartments for social
rent, shared ownership (available through Plumlife Homes) and a
further five homes for market sale (through Cube Homes).
Following its merger with Equity Housing Group in 2020, The
Poplars is Great Places' inaugural development in Stockport,
meeting its commitment to build much-needed affordable new homes
across the borough.
Age-friendly scheme completes in Horace Street, Bolton
Councillor Martyn Cox, leader of Bolton Council, was the guest
of honour to cut the ribbon at an event to mark the official
completion of Great Places' GBP2.3million 'age friendly'
development for the over-55s. This recently completed development
of 18 one-bedroom cottage-style apartments in Horace Street,
Halliwell, on the site of the former St Joseph's parish centre was
the first scheme completed by our in-house construction arm Terra
Nova Developments Limited. Aimed at customers who were looking to
downsize, the apartments, available for affordable rent, include a
range of amenities including wet rooms, hidden adaptations by
Invisible Creations and a shared garden to enjoy.
In-house construction Terra Nova site in Lancaster
Work has started in Lancaster on the second development for our
in-house construction company Terra Nova Developments Limited. The
GBP2 million development on Slyne Road, Lancaster, will be a
mixture of two-bed bungalows and three-bed houses available for
shared ownership. This development will provide much needed
affordable homes in the area, offering a mix of homes ideal for
families and those looking to downsize.
Inside Housing Development Awards 2022
Great Places Affordable Development Team is celebrating being
shortlisted in two categories for the Inside Housing Development
Awards 2022. Our Water Mill Gardens development in Prestwich, Bury
is in the running for the Best shared ownership category, while our
development work in the Mill Hill area of Blackburn is shortlisted
for the Best regeneration project - over 100 homes.
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
a profit estimate or forecast. We do not undertake to revise such
statements if our expectations change in response to events. This
report does not constitute legal, tax, accounting or investment
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END
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