QUARTERLY PERFORMANCE
UPDATE
Covering performance for the period
ending 30 September 2024
Great Places Housing
Group
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 included is based on unaudited
management accounts and other internal performance
measures.
FINANCIAL PERFORMANCE: QUARTER 2
Surplus before tax in the six-month period to
September 2024 was £15.7m, which is slightly ahead of
budget. At quarter two we achieved all our internal
financial "golden rules" around interest cover, gearing and
operating margin.
The latest forecast surplus approved
by Board in November is £27m, primarily because of £2m higher
operating costs as we brought forward some work to our
properties, including an acceleration of our fire risk assessments
survey programme across the stock and additional maintenance
work. Note that demand for reactive repairs has
stabilised this year and this cost is forecast to
budget.
In addition, the surplus from market
sale schemes is forecast to be £0.7m below budget as some budgeted
schemes will complete next year. Sales values are at budget
levels.
This forecast would result in the
full year operating margin internal golden rule (25%)
being missed by £1.2m, so it will remain under review and
challenge. All other golden rules including bank covenants
are forecast to be met this year.
We would remain higher than the sector median
operating margin of 18.2% per the RSH Global Accounts 2023.
The latest Regulator of Social Housing sector risk profile
indicates that whilst the sector retains financial strength,
including a strong liquidity position, financial headroom is
challenged and continues to intensify. This in part is due to
necessary expenditure on existing stock safety and quality and to
bring these in line with strengthening expectations on energy
efficiency.
Drawn debt (excluding bond/loan premium and
loan fees) was £647m, down £5m in the quarter due to RCF loan net
repayment.
Cash held (excluding cash held on behalf of
others) was £28m with undrawn bank (revolving credit) facilities of
£410m.
Mark to market exposure was £5.5m with nil cash
collateral posted to meet counterparties' security
requirements.
OPERATIONAL PERFORMANCE
We have performance measures for 2024/25 called
Signals For Success (SFSs). They are designed on
the themes "our homes, our customers, our people and our financial
viability".
Eight of the 12
signals for success are currently either achieving, or on target
(or phased target) at the end of September 2024:
·
73.4% overall satisfaction (target 72.0%): the primary driver
of satisfaction is repairs activity, which has shown an upward
trend this year.
·
Arrears: 3.9% general needs only (target 4.1%), in line with
target and remaining stable through quarter two.
·
Only 6.4% of unreserved new homes have been available for
sale for more than 6 months (control limit is to be less than
9.4%).
·
Interest cover golden rule EBITDA MRI: 172% (target
120%).
·
3,101 properties below EPC C, in line with the phased target
towards year end (2,500).
· 85%
of properties with stock condition survey in last five years,
already meeting the year-end target, on track to be 100% in
2025.
·
Colleague engagement 87% (target 84%).
·
Satisfaction with ease of contact 6.7 (target 6.2) on a
rolling 12-months basis. New contact centre software was
launched in September and is expected to help sustain this
measure.
Signals for success below target
are:
· 208
development starts on site (target 316), mainly due to one large
site of 132 homes delayed by a few weeks into October.
· 52%
EDI data completed (target 70%). Work underway to get to target,
with data already in use to enhance services based on customer
need.
·
4.1% days lost due to sickness (target 3.1%) for
September. We are benchmarking with Greater Manchester
housing providers, have launched mental health first aiders within
our colleagues and are exploring extra support through our employee
assistance programme.
·
39.7% of leavers were in their first 12 months of employment
(target 35%), which has reduced steadily over the past four
months. In exit surveys carried out by an external
independent survey, 89% of our leavers said they would want to work
for us again and 56% left us for to take up more senior positions
in other organisations.
CORPORATE NEWS
Regulator awards Great Places G1/V2/C2
rating
Great Places Housing Group has
maintained its G1/V2 regulatory grades following the recent
inspection by the Regulator of Social Housing and received a C2
grade against the new Consumer Standards. The Regulator found
that Great Places demonstrated the effectiveness of its governance
arrangements and continues to effectively manage the risks of its
activities allowing it to deliver its strategic and charitable
objectives. It also found that Great Places has the financial
capacity to deal with a range of adverse scenarios and that its
stress testing within its business plan enables it to manage a wide
range of risks, including those which sit around its sizeable
development and sales programme. Great Places received a C2
grade against the revised consumer standards, identifying both
strengths in service delivery, and a small number of areas for
improvement.
Rating agencies
2024 annual reviews have taken place
during quarter two. The Moody's grading was
unchanged at A3, stable outlook, and Fitch changed to A, stable
outlook (from A+).
Greater Together Foundation community
resilience fund 2024 launched
£100,000 in grants will be available
through the 2024 Greater Together Foundation Resilience Fund,
offering support to Great Places customers and the local community.
Grants of up to £10,000 will be made available to community
organisations which support our customers with health and wellbeing
services.
Plans approved for UK's 'first of a kind'
majority LGBTQ+ extra care scheme
Plans for the site in
Russell Road, Whalley Range, were approved in September, having
been produced in partnership with the local community, Manchester
City Council and LGBT Foundation. The site was launched with actor
Sir Ian McKellen, LGBT Foundation patron and committed supporter of
the Pride in Ageing Programme. Residents
will be aged 55 years or over with the majority being members of
the LGBTQ+ community, the first scheme of its kind in the
country.
Great Places and partners secure land for
major housing and community project in Gorton,
Manchester
Great Places, in partnership with
Greater Manchester Youth Federation (GMYF) and Kellen Homes, Sigma
Capital Group and Centrepoint, has agreed a new development of 303
homes and a major youth, community and sporting hub. It will
have full-size grass football pitches, a netball and basketball
court and a new youth and community hub, these facilities to be
owned and managed by GMYF.
Other news
For other news see our
website News &
Blog - Great Places
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.
