TIDM15HG
RNS Number : 9101P
Great Places Housing Group Limited
14 February 2023
QUARTERLY PERFORMANCE UPDATE
Covering performance for the year ending 31 December 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 THREE RESULTS
The management accounts of Great Places Housing Group (the
Group) show year to date surplus of GBP18.8m (budget GBP18.0m). The
Group's year end projection remains broadly in line with the GBP23m
target.
Turnover in the period to December 2022 (all income including
1st tranche and outright property sales) was GBP119.4m, GBP0.2m
lower than budget. Sales in the period have been strong,
particularly during December, which offsets lost rental income from
delayed development handovers. Operating surplus was GBP38.0m,
GBP0.5m higher than budget. Operating costs were GBP1.2m higher
than budget, mainly repairs & maintenance costs. Overall year
to date surplus was helped by the sale of 100 homes in Stoke to
Honeycomb, a local RP, as reported in quarter two. Net interest
costs were GBP0.3m better than budget due to better interest income
on cash deposits with higher interest rates; a smaller increase in
interest payable, with 94% of debt being fixed; and lower
capitalised interest due to delayed development schemes.
Drawn debt (excluding bond premium, other non cash balances and
loan fees, and including finance leases) as at December 2022 was
GBP644.3m (March 2022: GBP652.2m) with the movement due to
scheduled loan repayments.
The Group's Mark to Market exposure was GBP5.9m (March 2022:
GBP28.1m) with GBP0.8m cash collateral posted to meet
counterparties' security requirements (March 2022: GBP8.0m). This
shows the impact of the significant upward movement in long term
interest rates, reducing exposure on interest rate derivatives.
Cash balances (excluding cash held on behalf of leaseholders)
were GBP97.1m (March 2022: GBP119.5m) with undrawn bank facilities
immediately available of GBP143.8m.
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".
Five targets were achieved at the end of quarter three: Higher
Risk Building Safety; % of Digitally Active Customers; Households
into Work, Training & Volunteering; % Days Lost Due to
Sickness; and Colleague engagement.
Amongst the six CSFs that missed target for quarter three
are:
-- Arrears were 5.1% in December (CSF target 4.0%). As widely
forecast across the social housing sector we have seen our own
current arrears performance worsen since year-end.: we anticipated
that arrears would rise so we decided to keep the target 4.0% to
clearly show the increase. We know the ongoing cost of living
crisis will have affected customers' ability to pay rent and we
have recently focused on communications with customers about the
upcoming rent increase.
-- Average re-let time (year to date) is 28.4 days, higher than
the target of 22.0 days. Demand remains strong, we are not
experiencing changing demand for our properties but are
experiencing delays in getting some repair works completed ready
for new customers due to resource and capacity issues across some
trades. December in-month relet times were 23 days, so moving in a
positive direction.
-- Customer satisfaction was 6.0/10 at the end of September 2022
based on a 12 month rolling period, compared to the 7.0/10
satisfaction score in March 2022. The main themes are communication
and delayed or missed repairs: we have a Customer Experience
programme now in place focusing on these issues. This quarter we've
seen a really high level of demand on the repairs service as we
look to continue to prioritise addressing reports of damp and mould
along with emergencies particularly related to the cold
weather.
-- Tenant Satisfaction Measures (TSMs) were published by the R
egulator of Social Housing and we commenced our test and learn
phase during quarter three, preparing for go live in April 2023.
HouseMark report that satisfaction levels are lower this year due
to the economic factors, with spending power reduced for many
customers.
-- Development completions were 365 (target 485). We work hard
to overcome delivery challenges around labour, materials, approvals
and land registration. Examples of specific delays include highways
adoption, delivery of kitchens, services & substation works,
and cold weather in December affecting brickwork and the knock on
effect on roofing and plastering.
-- Demand for our shared ownership and outright sales products
is incredibly strong, with only nine shared ownership and zero
market sale homes being unreserved.
-- Data completeness, with 62% at December 2022. This has
remained steady throughout quarter three, similar to the result in
September 2022 and no longer on track to meet the full year target
of 92% data completeness. Work is planned but some actions are not
yet in place, for instance our EDI strategy will address gaps in
our customer data.
CORPORATE NEWS
These stories illustrate some of our recent activities,
particularly in terms of Environmental, Social and Governance.
ENVIRONMENTAL
We expect to publish our 2022 sustainability report in the next
few weeks.
Retrofit work to improve home energy efficiency
As part of our ongoing commitment to improve the energy
efficiency in our existing homes, our retrofit team has been
working closely with our repairs service team to look at
improvements to homes without loft insulation. We are now making
insulation improvements in over a hundred of our properties to
improve energy efficiency and to help tackle potential issues
associated with damp and mould.
Winners announced for GBP2bn OSHA MMC framework
The Off-Site Homes Alliance (OSHA), the alliance currently
consisting of 23 Housing Associations and Local Authorities
including Great Places, has recently revealed the volumetric and
panelised home manufacturers which have won a place on its new GBP2
billion Modern Methods of Construction (MMC) framework. The
national construction framework will look to support Housing
Associations and Local Authorities to deliver off-site homes, with
the objective of developing 10,000 homes per year through the
increased use of MMC technology. It will be administrated by Great
Places Housing Group on behalf of OSHA with the successful firms
supplying homes initially to its 23 members and to future new
Registered Providers and Local Authority partners of the
alliance.
SOCIAL
Greater Together Foundation update
Our Greater Together Foundation has been delivering three
projects:
-- House2Home: helping new customers to sustain their tenancies with household essentials.
-- The Resilience Fund: Community groups can bid to fund
projects targeted at helping our customers achieve financial
security.
-- Household Assistance Fund: helping our customers with
emergency financial support for costs such as fuel, food, white
goods and school uniforms.
So far, with the help of our supply chain partners, the
Foundation has invested GBP200,000 in to community organisations,
with a further GBP100,000 across our House2Home and Household
Assistance Funds.
Great Places working with anchor neighbourhood school on career
events
Great Places Housing Group's partnership with Manor Park Primary
school in the Longridge anchor neighbourhood was formed to help
build and sustain the local community's financial resilience by
raising its young people's aspirations. Great Places is
facilitating a series of events, including trips to Manchester
Airport and local businesses. The first visit was to Great Places'
Head Office in Manchester, where children (aged between 9 and 11),
had the opportunity to speak to colleagues about their various job
roles with engaging, interactive and fun activities. As part of
their commitment to social value, three of Great Places'
contractors (Sure Maintenance, VPS Group Cleaning Specialists, and
Poole Dick Construction Consultants) also took part in the day. See
the full story here.
GBP20k boost for Sheffield community groups
Sheffield Housing Company (SHC), Sheffield City Council's joint
venture development company with Keepmoat and Great Places , has
given a cash injection of GBP20,000 to local community regeneration
charities Southey Owlerton Area Regeneration (SOAR) and Manor
Castle Development Trust (MCDT). SOAR is using the funding to
launch a Warm and Welcoming Spaces initiative this winter to help
combat some of the challenges caused by the cost of living
crisis.
GOVERNANCE
Great Places appointed onto the Homes England Delivery Partner
DPS
Great Places Housing Association has been successfully appointed
onto the Homes England Delivery Partner Dynamic Purchasing System
(DPS) (Large and Small Sites), a primary route for Homes England's
land disposal that offers housing providers the exclusive
opportunity to bid for Homes England sites. The framework is the
largest of its kind in the UK and Homes England's largest
procurement exercise.
Great Places celebrates 130 new affordable homes at Belle Vue
Place
Great Places joined partners Countryside and Councillor Gavin
White, Executive Member for Housing and Development at Manchester
City Council in November to celebrate 130 much needed affordable
homes and the opening of show homes at Belle Vue Place. Built on
the former greyhound and speedway tracks, Belle Vue Place forms
part of an area undergoing exciting regeneration. Of the 277 new
homes, 130 are affordable, mixture of 89 for social rent, 12
Manchester Living Rent homes and 29 for shared ownership.
Bury Housing Lead visits East Lancs Paper Mill site to see
progress on GBP4.5m affordable homes development
In December Councillor Clare Cummins, Cabinet Member for Housing
Services at Bury Council, joined Great Places to view progress on
the GBP4.5 million redevelopment of part of the former East
Lancashire Paper Mill site in Radcliffe into affordable homes. Cllr
Cummins was joined by Great Places' Executive Director of Growth
Helen Spencer at the 'island' part of the site between Cunliffe
Street, Baybutt Street and Howard Street set to be transformed by
Terra Nova, Great Places' in-house construction company, into 27
affordable homes. The new neighbourhood will be of a mix of one and
two-bed apartments available for social rent and three and four-bed
houses for affordable rent. The development is part of a wider plan
by Morris Homes, Bury Council and Homes England to deliver up to
400 homes at the adjacent 22 acre brownfield site.
GBP4.6million Clifton Place development in Lytham, Fylde
Great Places recently welcomed Councillors from Fylde Council to
a special event to mark the completion of its first Shared
Ownership development in Lytham, Clifton Place. It has shared
ownership properties (16) and affordable rent (12) - a
GBP4.6million investment into the town. The homes are a mix of
apartments for rent alongside two, three and four-bed homes on the
site where the former Bonds and Stocks Office building once stood.
Councillors and colleagues were able to talk to affordable rent
customers to hear about their experiences of getting new homes in
one of the North West's most expensive areas.
Supported housing scheme in Stalybridge
Work has started on Great Places' GBP3.2 million new build
specialist supported living development in Stalybridge. The
specialist development on Grosvenor Street will provide 17
self-contained apartments with 24 hour on-site care commissioned by
the Tameside Adult Social Care Team. The project is the second
supported living project Great Places is working on in the borough
alongside the GBP5.1 million redevelopment of former Stalybridge
Police Station site into a similar supported living scheme.
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
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END
UPDUSAVRORUUAAR
(END) Dow Jones Newswires
February 14, 2023 10:11 ET (15:11 GMT)
Grafico Azioni Great Places 42 (LSE:15HG)
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Grafico Azioni Great Places 42 (LSE:15HG)
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