TIDM15HG
RNS Number : 9195G
Great Places Housing Group Limited
18 November 2022
QUARTERLY PERFORMANCE UPDATE
Covering performance for the year ending 30 September 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 TWO RESULTS
The management accounts of Great Places Housing Group (the
Group) show year to date surplus of GBP14.5m (budget GBP13.4m).
Turnover in the period (all income including 1st tranche and
outright property sales) was GBP79.1m, GBP1.3m lower than budget,
mainly due to delayed 1(st) tranche sales income and lost rental
income from delayed handovers from development. Overall surplus was
helped by the sale of 100 homes in Stoke to Honeycomb, a local RP.
Operating surplus was GBP27.6m, GBP1.2m higher than budget.
Operating costs were GBP0.6m higher than budget, with some cost
pressures on repairs and maintenance and with our investment works
progressing well.
Drawn debt (excluding bond premium, other non cash balances and
loan fees, and including finance leases) as at September 2022 was
GBP651.5m (March 2022: GBP652.2m) with the movement due to
scheduled loan repayments.
The Group's Mark to Market exposure was overall a negative
exposure, net -GBP1.0m (March 2022: GBP28.1m) with GBPnil 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 GBP110.2m (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".
Seven targets were achieved in quarter two: Higher Risk Building
Safety; % of Digitally Active Customers; Households into Work,
Training & Volunteering; % Days Lost Due to Sickness; Colleague
engagement; Group surplus; and Data Completeness.
The four CSFs that missed target for quarter two are as
follows:
-- Arrears were 5.0% in September, 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. We know the
ongoing cost of living crisis will have affected customers' ability
to pay rent.
-- Average re-let time was 29.0 days, higher than the target of
22.0 days. Demand for our properties remains strong, we are not
experiencing a changing demand for our properties but are
experiencing delays in getting some repair works completed ready
for new customers. A new housing management system and a new repair
scheduling system have been introduced during quarters one and two.
We expect re-let time performance to get back to target as new
processes are embedded.
-- Customer satisfaction was 6.4/10 at the end of September 2022
based on a 12 month rolling period, compared to the 7.0/10
satisfaction score in March 2022. This is reflective of a range of
external factors that HouseMark cited as the likely cause of lower
satisfaction this year. Encouragingly, in-month satisfaction has
increased in each of the last 3 months. 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.
-- Development completions were 232, 34 below our revised CSF
projection of 266 by the end of quarter two. We continue to work
hard to unlock the blockages to schemes completing, with delivery
challenges around labour, materials, approvals and land
registration. Demand for our shared ownership and outright sales
products is incredibly strong, with only five shared ownership and
one market sale homes being unreserved.
CORPORATE NEWS
Great Places and MSV Housing Groups in merger talks
Great Places Housing Group (GPHG) and Mosscare St Vincent's
Housing Group (MSV) have started discussions to officially join
together. Should the plans progress satisfactorily, the intention
is to move to full merger by July 2023. The shared geographic,
ambition and tradition of community based work makes this a great
opportunity to create a larger more resilient organisation tackling
the challenges facing the sector. Read more on our website, News
page here .
These stories illustrate some of our recent activities,
particularly in terms of Environmental, Social and Governance.
ENVIRONMENTAL
Great Places installs EV charging points at community centre
Great Places has installed new electric vehicle charging points
at Crossley Community Centre in Oldham. The decision to install the
chargers is in line with Great Places' commitment to introduce
facilities to support the reduction of carbon emissions to zero by
2038 and improve air quality and reduce noise pollution in the
local area. The charger will also help generate much needed income
for Crossley Community Association with all profits generated going
back into supporting activities and events for the local
community.
Housing Lead visits New Islington to view start of GBP12.8m
low-carbon affordable homes development
Cllr. Gavin White, Executive Member for Housing and Development
at Manchester City Council joined Great Places to mark the official
start of work on the Group's latest GBP12.8m development scheme in
New Islington. Focusing on affordability and environmental
sustainability, the Downley Drive development will create 68
affordable homes that will combine a high-quality design with low
carbon sustainability and will feature air source heat pumps,
enhanced insulation, mechanical heat recovery and a solar panel
array. Parking will also include Electric Vehicle charging points
and cycle stores.
SOCIAL
Great Places at forefront of knife crime campaign
Great Places has commissioned a documentary on knife crime
created by young people from Salford. The project is a partnership
with REELMCR, a local community engagement and media production
company. The documentary was funded by Great Places and our
supplier Equans through social value, and is aimed at young people
aged 11 and upwards to be used in schools or other youth settings.
Great Places has worked with Salford City Council's Project Gulf to
fund six bleed cabinets that have been installed across the city,
each containing a bleed control kit which can enable a member of
the public to provide life-saving treatment in the event of a
stabbing or any other catastrophic bleeding.
'Greater Together' Foundation launched
Great Places is committed to investing in our communities and
helping our customers to live well. With more of our customers
affected by the rising cost of living, we're delighted to launch
our Greater Together Foundation which will focus on direct support
for customers, as well as community-based initiatives to help
people to take control of their household finances. One strand of
the foundation is The Resilience Fund where Community Groups can
bid for between GBP1,000 and GBP25,000 for projects targeted at
helping our customers and their community achieve financial
security.
GOVERNANCE
Work starts on GBP5.1m transformation of Stalybridge Police
Station site
Councillor Dave Sweeton and Councillor John Taylor from Tameside
Council, joined Great Places and Watson Homes to mark the official
start of work on the GBP5.1 million redevelopment of former
Stalybridge Police Station site into a newbuild supported living
scheme. The site will be transformed into specialist development of
24 one and two bedroom flats, with on-site care commissioned by the
Tameside Adult Social Care Team. The development is expected to be
completed in June 2024. Read the full story here.
Great Places submits plans for 73 affordable homes in Stockport
regeneration district
Great Places Housing Group has submitted plans to build
high-quality affordable homes in the King Street West area of
Stockport town centre. The proposed GBP16.4 million development
will be located in the heart of the Stockport Mayoral Corporation
Town Centre West regeneration area, which looks to form a new
gateway in the town centre with 3,500 homes and more than 1m sq.
ft. of commercial space. The proposals will be funded in part by
Homes England and seeks to compliment other proposed developments
in the area by adding high-quality affordable homes to the mix. The
development will consist of 73 one and two-bed apartments, all of
which will be available through the government-backed Rent to Buy
scheme. Subject to planning, work will start on the new site early
next year. Read more here.
Work starts on two new Terra Nova sites in Lancaster and
Manchester
Work has started on two new sites for our in-house construction
company Terra Nova Developments Limited. The first, a GBP2 million
development on Slyne Road in Lancaster, will be a mixture of
two-bed bungalows and three-bed houses available for shared
ownership.
The second site of 32 new homes on Chain Road in Higher Blackley
in Manchester will deliver a mix of one-bed and two-bed apartments
alongside three-bed and four-bed houses, all available for social
rent. Terra Nova is also in negotiations for several additional
sites which will be coming through in the next few months.
Great Places hosts Shadow Chancellor on visit to its Ancoats and
New Islington Developments
Great Places hosted Shadow Chancellor, Rachel Reeves on a tour
of its New Islington and Ancoats developments, as part of her
recent visit to the region to hear about Greater Manchester
Combined Authority's (GMCA's) commitment to build 30,000
zero-carbon social rented homes by 2038. Read more about it
here.
Alliance of 23 Housing providers launches GBP2 billion off-site
national construction framework
The Off-Site Homes Alliance (OSHA), an alliance of 23 Housing
Associations, is launching a national construction framework for
volumetric (CAT 1) and panelised (CAT 2) Modern Methods of
Construction (MMC). This will support Housing Associations and
Local Authorities to deliver off-site homes, with the objective of
developing 10,000 homes per year by upgrading to MMC
technology.
The OSHA framework will be administrated by Great Places Housing
Group on behalf of OSHA and is seeking bids from volumetric and
panelised manufacturers interested in supplying homes initially to
its 23 members and to future new members of the alliance.
Our Annual Report 2022 is live!
Our latest Annual Report for 2022 is now live and available to
read on our website. The Report covers the period from 1 April 2021
to 31 March 2022, that included the conclusion of our post-merger
integration period. It also outlines how we are now operating as
one bigger and more resilient business following our 'One Business'
go live, in a strong position financially and organisationally to
tackle the challenges ahead.
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
advice.
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END
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