QUARTERLY PERFORMANCE
UPDATE
Covering performance for the period
ending 31 December2023
Our performance updates provide regular, timely
information regarding the performance of the Group. They are
published quarterly, within six weeks of the quarter
end.
The information is based on unaudited
management accounts and other internal performance
measures.
FINANCIAL PERFORMANCE: QUARTER
THREE
Surplus before tax in the period to the end of
December 2023 was £18.5m (£18.8m at quarter 3 ,22/23) with
the year-end projection being slightly
lower than the £28m reported in quarter 2 at £27.5m
(2022/23 £21.4m). This is due to a
small number of open market sales deferred into early
2024/25. All other income and expenditure elements are
expected to be in line with those projected at quarter
two.
Drawn debt (excluding bond premium, other
non-cash balances and loan fees) was £633.6m (March 2023:
£643.7m) with the movement largely due to scheduled loan
repayments.
Mark to market exposure was £8.4m (March 2023:
£7.9m net) with nil cash collateral posted to meet counterparties'
security requirements (March 2023: nil).
GBP mid-market interest
rates and UK gilt yields had risen during the year
peaking in October, so the swap exposure had fallen at the end of
quarter two, to £1.1m, but by December both interest rates and swap
exposure were back in line with March.
Cash balances (excluding cash held on behalf of
leaseholders) were £43m (March 2023: £93m) with undrawn bank
facilities immediately available of £141m.
Our internal financial "golden rules" around
interest cover, gearing and operating margin were all achieved at
the end of this quarter and are all also
expected to be achieved with our projected year-end
outturn. We note that continued cost pressures in the
short term bring us close to our operating margin golden rule,
with 26.5% projected for the full year (2022/23 was
23.6%). The latest "Global Accounts of private registered
providers" to March 2023 (Regulator of Social Housing, December
2023) reports declining surpluses for RPs in the context of wider
economic pressures and some sector-specific issues, and our
performance is better than average.
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 2023/24 which include
two for the Regulator of Social Housing's Tenant Satisfaction
Measures (TSMs). Six CSFs are achieving target, two are
showing an early warning, and three are currently missing target,
explained below.
The CSFs achieving target are:
·
Arrears 4.6% (target 4.7%) has remained steady during the
year.
·
2.9% days lost due to sickness (target 3.2%).
· 84%
colleague engagement (target 80%).
·
71.6% overall satisfaction (target 70.0%). Benchmarking shows
our performance to be in line with other registered
providers.
·
Data completeness 87.0%, continues to exceed the target of
83% due to improvements in the housing management system and the
status of customer profiling.
·
1,115 households into work, training or volunteering, which
has already achieved the year-end target of 950.
The CSFs showing early warnings are:
· TSM
"satisfaction with safety in home" is 82.4%, a positive increase
since quarter two, 81.5% (year-end target 85%). We are
continuing to analyse our customer responses further to understand
the reasons for this and increase satisfaction rates.
· %
digitally active tenants is 38% and has steadily improved through
the year against a target of 40%. Our new self-serve repairs
capability via the customer portal has gone live during quarter
three for two of our four neighbourhood regions with customer
satisfaction with this new service being high.
Missing target are:
·
Development completions: 303 new homes completed to December
2023 (target for the full year, 786). Site challenges earlier
in the year coupled with the very wet weather in November have
meant that a number of sites have experienced delays, particularly
with drying out apartment blocks. There are 39 live sites in the
programme with handovers rolling from an increasing number so the
new homes are on their way.
·
Voids re-let time to December was 28.1 days (target 25 days).
Our performance on average relets has remained relatively
stable during the year at 28 days. Customer demand for most
properties has remained strong but we have seen delays on average
relet times as we balance resources across operational
priorities.
· The
CSF for Group surplus before tax of £31.7m will not be achieved due
to increased repairs and insurance costs included within the
financial projection as referred to above.
Board member and Executive changes
Matt Harrison, Chief Executive, is
stepping down at the end of June 2024. Matt became Chief
Executive in 2013 after serving for 20 years as Executive
Director of Development. The process to recruit a successor has
begun, and the news was announced on the London Stock Exchange on
9th January 2024.
The new Chief Financial Officer Mike
Gerrard joined in November 2023 to replace Phil Elvy as previously
announced.
Recruitment for the Chief Property
Officer recruitment is also progressing well and we expect to
appoint during quarter four.
Mervyn Jones became Chair of the
board in December, his predecessor Tony Davison having stepped down
after his tenure.
The new Customer Committee has been
set up with a chair, board member Patrick Ricketts, and seven
customers. The new committee will be an important link
between the board and customers, being the
voice of residents and holding Great Places to account for things
that matter to them.
CORPORATE NEWS
These stories illustrate some of our recent
activities, particularly in terms of Environmental, Social and
Governance.
ENVIRONMENTAL
£1
Million Renovation of Clifford Court, Stockport
Councillor Graham Greenhalgh, the
Mayor of Stockport, Councillor Colin McAllister, Cabinet Member for
Housing, and local Ward Councillor, Helen Hibbert
joined Great Places for festive celebrations
to mark the completion of a £1 million improvement works project at
our Clifford Court development in Heaviley, a scheme of 87 flats
across 10 blocks that provides both sheltered and rented
accommodation. The group was met by our Chief Executive, Matthew
Harrison, and members of the project team and given a tour of the
recently renovated scheme. Built originally in 1971, our
Clifford Court scheme has undergone significant improvement works
as part of the year-long project including major internal and
external communal refurbishments: highlights include new heating
and staircases, external doors, new communal space, fencing, patio
and boundary walls.
Work starts on Heat Network and Energy Efficiency Improvement
Projects
Improving the energy efficiency in
our existing homes is also still a key focus for Great Places. Work
is progressing on our £3 million improvement works to our heat
network that serves 299 of our customers in the Richmond Park area
of Sheffield. Initial works have already been completed on the
project, in part funded by the Government's Heat Network Efficiency
Scheme (HNES), and we're working with our contractors Fairheat on
preparing for the next part of the programme to update heating
equipment in customers' homes due to start in Spring. Additional
HNES Funding has also been secured to conduct feasibility studies
at Hutton Lodge in Manchester. We will also be conducting our own
study to look at potential improvements that can be made to our
heat networks at three of our extra care schemes. In addition, we
are starting to roll out our programme of energy efficiency
improvements to around 400 of our homes in Greater Manchester and
Sheffield. Part-funded by the Social Housing Decarbonisation Fund
the work will deliver a range of improvements to keep the heat in
and make the homes more energy efficient.
SOCIAL
198 new homes in Royle Works in Castleton,
Rochdale
Great Places and Countryside
Partnerships welcomed Rochdale Borough Council to Calico Grove to
see the development that has transformed the site of the former
Royle Works in Castleton, Rochdale. The site was once home to
the world's largest cotton mill, which was largely demolished by
1979 and has since been a brownfield site. It is now being turned
into a community of 168 homes, 3 and 4 bedroom family houses, and
30 2 bedroom affordable properties. 102 homes will be affordable
and managed by Great Places, while the remaining 96 will be
available on the open market. As part of the
development, Countryside is also investing over £500,000 into local
primary education. Cllr Peter Williams, the council's
assistant cabinet member for regeneration and housing, and Mark
Robinson, Rochdale Borough Council's director of economy, joined
the partners for a tour of the site and the recently opened show
homes, and met with some residents who had recently moved into a
Great Places affordable rented property.
£3m
scheme completed, Craven Court in Lancaster
Cllr Caroline Jackson, Deputy Leader
of Lancaster City Council and Cabinet Member for Housing and
Homelessness at Lancaster City Council, and three local councillors
joined Helen Spencer, Great Places Executive Director of Growth and
Paul Mayo, Senior Construction Manager at Terra Nova Developments
on a visit to our recently completed affordable development at
Craven Court in Lancaster and to speak with some of our new
residents. The new development is 12 x three-bed houses and 2
x two-bed bungalows for shared ownership. This was one of the
first developments to be delivered by Terra Nova, our in-house
construction company, and was marketed by Great Places' shared
ownership specialists, Plumlife Homes.
67
affordable homes at its £9.6million Heathfields development in
Darwen
Helen Spencer, Executive Director
for Growth at Great Places Housing Group, was joined by Councillor
Phil Riley, Leader of Blackburn with Darwen Council, Councillor
Quesir Mahmood, Deputy Leader- of the Council and Executive Member
for Growth and Development, and ward councillors as well as
representatives from McDermott's to celebrate the development being
officially opened. The mix of 22 shared ownership and 55
affordable rented properties is part of a much larger, new
neighbourhood of 353 homes being developed by East Lancashire-based
McDermott Homes. The Miner's Gate site, formerly the Ellison
Fold Colliery, was made accessible by the new £3million East Darwen
Link Road, ensuring the homes are well connected to the town centre
and local amenities as well as the M65 and other key routes.
Darwen is set to benefit from £100m of new investment through the
Town Deal, including significant funding for the town centre, new
jobs and improved sporting facilities.
Hive Homes launches Rochdale development
Hive Homes, a joint venture of which
Great Places is a member, launched its latest development, the
102-home Weavers Fold off Nixon Street in Castleton,
Rochdale. The scheme turns the eight-acre former Carcraft car
supermarket site, which had laid dormant for eight years, into a
neighbourhood with 85 three-bedroom and 17 four-bedroom homes, a
mix of semi-detached and detached properties, as well as a large,
public open space. Ed Milner, Hive Homes' Managing Director,
was joined by Rochdale Borough Council's assistant cabinet member
for regeneration and housing, Councillor Peter Williams, and others
to cut the ribbon to officially open the development for
sales.
Inspiring futures with Manor Park Primary
School
Great Places is excited to announce the
continuation of Raising Aspirations Project, its partnership with
Manor Park Primary School in the Longridge and Shaw Heath
neighbourhood. We hosted an event in January, in
collaboration with Sure Maintenance and Bowker Sadler, to introduce
children to a range of skills and job opportunities in housing
through practical sessions. This initiative is designed to
inspire and encourage young students while introducing them to
various career paths, promoting financial resilience and a sense of
community.
Great Places continues partnership with Oldham Athletic
Community Trust, to support youth engagement within
Oldham
We're pleased to be working in
partnership with Oldham Athletic Community Trust to deliver youth
engagement opportunities on a weekly basis to young people aged 8
to 18 on a free-of-charge basis. Activities include gaming, table
tennis and football, as we have a commitment to help improve the
lives of the people who live in our homes and
communities.
Deputy Leader for Manchester City Council visits Olivia
Lodge
Councillor Joanna Midgley visited
Oliva Lodge in Clayton, Greater Manchester, to see first-hand the
difference this scheme makes to the young women who live there.
Olivia Lodge provides accommodation and support for homeless young
women aged between 16-25, who are either pregnant or have children
aged five and under. The scheme is a purpose-built accommodation
containing 12 self-contained, fully furnished flats, a communal
lounge, a playroom and a training kitchen.
GOVERNANCE
Corporate plan 2024 consultations
This year we will be creating our
new corporate plan that will outline our priorities and ambitions
for the next three years. During quarter three and into
January we have consulted with our boards and committees, senior
management, colleagues and customers. Chair of the board
Mervyn Jones encouraged our customers to get involved, "It is
really important that we take the views of our customers into
account when we are planning for the future. We want to make sure
that we are providing the best possible services for our customers
and so I would encourage all to get involved and take part in our
current consultation." Colleagues had their annual away days,
which included discussions and consultation on the new corporate
plan, gathering feedback on what colleagues are proud of and what
are 'pain points' for them, which will help shape priorities in the
medium and longer term.
FEEDBACK
We welcome feedback on our performance update.
Please contact Mike Gerrard, Chief Financial Officer, 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
advice.
