BUSINESS PLAN

Transcription

1 BUSINESS PLAN

2 BUSINESS PLAN CONTENTS 3 Chair s foreword 4 Vision and objectives 5 Organisational profile Business objectives 8 Provide new quality homes and places 10 Deliver customer-led services 12 Invest in homes and local communities 14 Strengthen our business 16 Financial forecasting 18 Board of management 20 Executive Management Team 22 Group structure 2

3 CHAIR S FOREWORD Each year the Group rolls forward its business plan so that we can target and measure outcomes towards our core strategy. These include developing new homes, improving services for our customers and achieving efficiencies, all of which require continual investment, staff resources, improved systems and financial backing. Our ambition to provide a range of housing options that fit our customers incomes and lifestyles is expressed in the expansion of our private rent portfolio. This aims to meet both our core strategy and in the long term provide us with additional cross-subsidy. The profit we make on building homes for private rent and sale, and the efficiencies that we can make in our revenue costs, play a big part in our affordable housing provision. And with such a large reduction in development grant being seen, it is these surpluses that helps make up a significant percentage of every new affordable home that we build.... a successful organisation that has made a great social contribution. The plan continues our cautious approach to risk and the need to ensure that we are a strong financial prospect, attractive to investors. With banks lending more cautiously, how we are viewed in the investments and particularly the bond market, is crucial to us being able to raise the future finance for new homes. We made a heavy investment in customer services in preparation for the changes in welfare benefit. The resources we have in place will benefit from our plans for further investment to prepare for a time when the benefit changes are fully operational. During 2013/14 we have had a number of board changes and there are many new faces that will be responsible for the tenure of this plan. Those retiring can do so with the knowledge that they are leaving a successful organisation that has made a great social contribution. I am confident that the new board supported by our staff, partners and advisors can continue this progress and carry on achieving something that we can all be proud of. Derek Joseph, Chair 3

4 VISION AND OBJECTIVES Our vision is simple TO IMPROVE PEOPLE S LIVES THROUGH HIGH QUALITY HOMES AND SERVICES To help us realise our vision, we have four strategic objectives: PROVIDE HIGH QUALITY HOMES AND PLACES. DELIVER CUSTOMER-LED SERVICES. INVEST IN HOMES AND LOCAL COMMUNITIES. STRENGTHEN OUR BUSINESS. 4

5 ORGANISATIONAL PROFILE The A2Dominion Group is one of the country s leading providers of high quality housing and services. With over 34,000 homes across London and the South East and thousands more in the development pipeline, we offer a wide range of homes for rent and sale. Through our A2Dominion New Homes brand we provide high quality homes for sale, shared ownership and investment, in some of the UK s most desirable areas. Through our A2Dominion Group brand we provide private rented sector homes. We also provide a range of repair services through Pyramid Plus, two asset management companies which bring together the expertise of A2Dominion, Breyer B-Line and MITIE. A REGIONAL PLAYER We have a strong presence in London, Surrey, Berkshire, Oxfordshire and Hampshire, owning approximately four per cent of total Registered Provider stock in London and the South East. We are a member of g15, an independent group of London s largest housing associations. PROFIT WITH A PURPOSE The Group s commercial activities subsidise and complement its core business, with surpluses reinvested into developing more affordable housing and making existing homes and services even better. This includes a 185m commitment to expand our private rented portfolio, providing 750 private rent homes over the next five years. 5

6 FINANCIAL STRENGTH As at 31 March 2014 VALUED AND ENGAGED Changes in the funding of social housing have led us to review our business model with increased reliance on commercial activities and private investment. In 2013 A2Dominion raised funds of 150m in record time from investors through a retail bond issue on the London Stock Exchange. The proceeds reduce the need for intercompany borrowing for commercial activities and free up existing resources for affordable homes. The Group remains financially strong with: Customer feedback and involvement helps determine the scope and standard of A2Dominion s services, as well as its improvement and investment priorities.the Group actively promotes equal access and opportunity, tailoring its services to meet different needs and targeting specialist services and support at its most vulnerable customers. One such project is A2Dominion s enterprise initiative, Be Inspired, which helps young people to plan their future through apprenticeships, mentoring, bursaries, training/ employment opportunities and career/business advice. 2.8bn asset base 274.2m annual turnover 77.7m annual operating surplus 74.8m in annual sales income 14.9m grant funding approved by HCA for A RANGE OF TENURES Tenure General needs Shared ownership Leasehold Key worker Supported housing and housing for older people Student accommodation Freehold Private rented Temporary accommodation Other As at 31 March 2014 Total 17,536 4,027 3,052 2,819 2,441 1, ,904 TOTAL 34,818 EFFECTIVE CO-REGULATION Strong governance, risk, audit and performance management frameworks all help to safeguard the financial and corporate health of our organisation, as well as the interests of our customers. Continuous improvements are achieved through our customer-led Service Improvement Groups, our Lean programme of business process reviews and periodic selfassessment, all informed by stakeholder engagement. GROUND-BREAKING PARTNERSHIPS A2Dominion launched two joint venture companies, known as Pyramid Plus, that deliver responsive and void property repairs to our customers. Created with contractors Breyer B-Line and MITIE, the services are worth approximately 15m per year, with the potential to expand their service remit to other housing and facilities management providers. We are also exploring proposals for new joint ventures to provide and manage homes in the private rented sector. 6

7 CHANGING TIMES AWARDS AND ACCREDITATIONS Changes in the economy, regulation, legislation and housing and welfare policy all impact directly on the organisation and our customers. This affects where and how we develop, what homes and services we provide, and at what cost. In addition, new technology is transforming how our customers access our services and engage with the business. Particular issues impacting on this plan include: welfare reform and changing housing needs economic recovery regulation and a focus on financial viability, governance and value for money greater emphasis on local authority relationships and new commercial partnerships. COMMITTED TEAM Our success as one of the country s leading housing groups is largely due to the people that work for us. We employ around 900 staff at A2Dominion and 120 at Pyramid Plus, who offer expertise, local knowledge and dedication to serving our customers. We offer excellent career prospects and training to attract and retain high-calibre individuals and have low staff turnover and absence rates. A2Dominion is a Sunday Times Top 100 not-for-profit organisation to work for 2014 and in the top one per cent of Investors in People organisations. A STRONG ORGANISATION What House? Awards Gold for Housing Association of the Year RESI Awards Finalist for Landlord of the Year UK Housing Awards Winner of Business Transformation of the Year Sunday Times Top 100 not-for-profit organisation to work for 2014 Best Companies One-star status Investors in People Gold award CIPR Pride Awards Winner of Best Internal Communications Campaign. HIGH QUALITY HOMES AND PLACES NHBC Pride in the Job Awards Regional winner for Viva Stanwell, Surrey Placemaking Awards Highly commended for North West Bicester Eco Town Considerate Constructors 2014 National Site Awards - Silver for Cereston, Billingshurst Regeneration & Renewal 2013 Top 100 biggest regeneration projects - Green Man Lane, Ealing Inside Housing Sustainable Housing Awards Shortlisted for Peregrine Road, Staines. ENGAGED CUSTOMERS AND COMMUNITIES Active Westminster Awards Winner of Physical Activity, Health and Wellbeing category In-House customer satisfaction survey Gold National Housing Awards Commended for Best Digital Marketing Foundations Quality Mark accreditation - Spelthorne Home Improvement Agency National Leasehold Conference Winner of Leaseholder Engagement Award Accredited to deliver Supporting People services to 12 local authorities, and Domiciliary Care services to four local authorities. 7

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9 PROVIDE HIGH QUALITY HOMES AND PLACES Our guiding principle is to provide high quality homes and neighbourhoods that people want to live in. Our programme will match tenures and property types to different needs, aspirations and means, according to the opportunities available. Supporting goals Targets Deliver a wide range of high quality, environmentally-sustainable new homes and places. Deliver 4,200 new homes by April 2017 across a range of tenures. Procure land to support the development of 1,200 homes in 2014/15 and 1,500 homes in 2015/16. Meet the Code for Sustainable Homes Level 4 on majority of new schemes. Complete our Homes and Communities Agency affordable homes programme, delivering 239 homes and bid for new affordable homes programme Deliver the North West Bicester Eco Town exemplar, with the first units available for occupation in May 2015 and completion of the first phase in early Maximise sales of homes for shared ownership and private sale, in addition to our affordable and intermediate rent programmes. Sell 100% of homes for shared ownership and private sale at the approved values. Achieve average sales within 18 weeks of handover. Deliver a programme of 150 private rent properties annually, 750 by

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11 DELIVER CUSTOMER-LED SERVICES Our goal is to deliver better services, communication and market intelligence to achieve accessible and responsive services which cater for customers diverse needs and expectations. Customers are the ultimate judge of what we do, so we must deliver high standards and value for money. Supporting goals Targets Sustain and improve customer satisfaction with A2Dominion s services and continue to develop accessible services based on customers needs. Deliver improved customer services and 85% customer satisfaction through the specialist repairs call handling team. Increase digital self-service extending My Account transactions to payments, direct debits and estate services by March Continue to streamline processes for customer enquiries and complaints by December Improve responsive repairs service whilst achieving value for money. Secure a manageable level of new business in order to grow Pyramid Plus and deliver financial returns in line with its business plan targets. Complete 65% of repair jobs on our first visit. Achieve 85% customer satisfaction with our responsive repairs service. Focus on improving customer contact for leaseholders. Provide a timely, clear and professional response within six weeks to all service charge queries from leaseholders. Establish accredited qualification of professional standards for the Leasehold Services Team. Minimise impact of welfare reform on customers and income streams to ensure tenancies are sustained. Offer and manage fixed-term and periodic tenancies for all general needs lettings and achieve an income collection target of 99.61%. Maximise benefit payments and other resources for vulnerable customers through our tenancy sustainment teams. 11

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13 INVEST IN HOMES AND LOCAL COMMUNITIES We will continue to maintain and upgrade our homes and to increase their environmental performance. We will work with customers to develop safe, sustainable communities where they play an active role and have positive life experiences. Supporting goals Targets Ensure all our homes meet the government s Decent Homes Standards, are affordable to run and have a sustainable environmental impact. Maintain clean and safe neighbourhoods and estates with an associated increase in customer satisfaction. Deliver the 106.5m planned and major repairs and maintenance programme for refurbishment and upgrading of homes. Improve environmental performance as measured by increased energy ratings and retain SHIFT accreditation. Provide a 24-hour initial response time to all incidents of antisocial behaviour along with monthly follow-up contact with victims. Deliver the window replacement and guarding programme to comply with health & safety legislation and to complete priority safety works by March Adopt a strategic approach to the disposal and redevelopment of properties to focus resources in key localities and to improve the quality and cost-effectiveness of local services. Tailor community services, facilities and support services to meet local need and promote the economic wellbeing of our customers. Ensure targeted asset disposals to meet community development, asset management, and regeneration and redevelopment opportunities. Implement local asset management plans that are specific to each local authority as set out in our Asset Management Strategy. Continue to deliver our annual Priority Neighbourhoods programme of specialist interventions, and employment and training signposting in 10 identified areas. Develop Digital Deal long-term strategy and delivery programme to support 500 customers to go get online through awareness and training programmes. Further expand employment and enterprise initiatives to offer 10 apprenticeships per year, 40 work placements, 70 personal development programmes and seven enterprise schemes for adults and young Care & Support customers. Undertake regeneration where needs and opportunities exist. Complete final phase regeneration of approximately 46 homes at Stanwell by December Complete Phase 2 construction of 186 homes at Green Man Lane by December Maximise and diversify funding opportunities to maintain and grow Care & Support services, and manage risk resulting from funding constraints in relation to contracts, safeguarding, resource management and income. Actively identify and develop external funding opportunities to deliver a wider range of services for Care & Support by March 2015 Identify potential partnerships to further develop services by March Maintain and develop care contracts by March

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15 STRENGTHEN OUR BUSINESS We will continue to invest in staff development and wellbeing. We will reduce waste through our Lean service improvement programme and look to increase reinvestment through efficiencies. We will continue to seek new sources of funding and pursue appropriate acquisitions, partnerships and joint ventures. Supporting goals Targets Recruit and retain a skilled, motivated, and representative workforce and promote a culture of innovation. Retain Investors in People Gold standard in August Increase staff satisfaction as measured by the Sunday Times Best Companies survey and improve on our top 75 position. Review objectives of the Talent Management Deal programme by March Simplify key business processes supported by effective use of IT. Deliver a three-year IT programme with completion of key projects including Electronic Document Management, Customer Relationship Management and mobile working by December Identify and procure replacement internal software system for Finance, Human Resources, Payroll and housing management by March Continue to implement a programme of Lean business reviews in both front-line and back-office services to deliver efficiency targets and service improvements. Maximise income. Deliver operating surpluses of 290.5m during , excluding sales. Deliver a surplus of 113.2m during from sales. Meet annual targets for income management and void property management. Improve value for money and achieve efficiency savings. Deliver Value For Money Strategy with a target of 5m efficiency savings for Understand, publish and compare costs of core services and set efficiency targets where appropriate. Rationalise office accommodation and introduce flexible working to deliver 800k annual savings from Review tender for development contractor frameworks by April Maximise long-term funding opportunities and grow commercial activities, to generate subsidy for new social housing provision and investment in existing homes and services. Pursue partnership work and commercial joint ventures to secure new provision and investment to deliver up to 185m worth of private rent homes. 15

16 FINANCIAL FORECASTING As at 31 March 2014 Our long-term financial plans have been calculated using a bespoke forecasting model that includes our annual budgets, stock condition survey, development cash flow, and rent and treasury databases. This allows us to build financial forecasts that are tailored to our business requirements. FORECAST INCOME AND EXPENDITURE Forecast 2014/15 m Forecast 2015/16 m Forecast 2016/17 m Threeyear total m Social housing turnover Operating costs (128.7) (143.0) (149.7) (421.4) Depreciation on housing properties (23.2) (24.5) (25.8) (73.5) Social housing operating surplus Property sales Cost of sales (60.0) (172.7) (208.1) (440.8) Surplus on property sales Surplus before interest Interest receivable Interest payable (46.7) (59.5) (62.8) (169.0) Surplus for period before tax Tax payable Surplus for period after tax Accumulated surplus brought forward Accumulated surplus carried forward

17 FORECAST BALANCE SHEET Forecast 2014/15 m Forecast 2015/16 m Forecast 2016/17 m Fixed assets Housing assets 3, , ,422.8 Social housing grant (1,175.8) (1,193.3) (1,202.6) Depreciation (147.2) (171.7) (197.5) Other fixed assets Total fixed assets 1, , ,039.0 Long-term investments Total current assets Total current liabilities (32.5) (29.5) (29.5) Net current assets / (liabilities) Total assets less current liabilities 2, , ,168.5 Long-term loans 1, , ,384.2 Long-term creditors Designated reserve Accumulated surplus Total financing and reserves 2, , ,

18 BOARD OF MANAGEMENT The Group Board steers and directs the activities of the organisation. Members are chosen to ensure a broad cross-section of skills and experience within the housing sector. Derek Joseph (Chair) Derek has over 30 years experience in the housing sector and significant knowledge of social housing finance and governance. A former director of the HACAS Group Plc and Tribal Treasury Services, Derek is currently a non-executive director of a number of quoted and private companies. He is a voluntary director of the charities Homeless International and the London Housing Federation. Tez Cook Tez is an A2Dominion resident and the elected Chair of A2Dominion s Customer Services Committee. He was previously a representative on A2 Housing s Resident Executive Group (South) and the founding member of Winchester Residents Forum. Tez currently works at Hampshire County Council in its Drug and Alcohol Action Team. Ian Cox Ian has worked within the property industry for over 35 years, holding senior-level development and regeneration roles at Bellway Homes and Redrow. He is Managing Partner and shareholder of Cox Development Partners, developing mixed-use projects in partnership with landowners and local authorities. Ian is also part-time project director for the North Solihull regeneration project. Susan Eggleton Susan is a chartered accountant and has over 20 years Board-level experience. Previous positions have included Executive Director of Finance and Deputy CEO of an NHS Hospital Trust, and Director of Corporate Services for two start-up organisations. Susan is currently Business Director for the NHS Trust Development Authority and is a trustee of The Liver Group charity. 18

19 Brenda Jenner Brenda has worked in the banking industry, including the retail, wholesale and investment sectors. She is now a director of a small management consultancy firm and a private asset management company. In addition, Brenda is a self-employed management consultant specialising in the financial sector with an emphasis on strategy and risk. John Knevett John has worked in the housing sector for almost 30 years, in addition to having extensive experience as a structural and civil engineer. He was previously CEO of A2 Housing Group and is currently Group Commercial Officer and Deputy Group Chief Executive of A2Dominion. David Lewis David has worked in the social housing sector for more than 20 years and has worked at a senior level for housing associations, local authorities and arms-length management organisations. David currently works as Assistant Director of Technical Services for a London borough and is a member of the Chartered Institute of Housing. Darrell Mercer Darrell has 35 years experience in the housing sector and was previously Assistant Director of Housing for the London Borough of Islington. He is the former CEO of Acton Housing Association and Dominion Housing Group and is currently the Group Chief Executive of A2Dominion. David Walden David is a chartered accountant with over 25 years experience in international taxation, mergers and acquisitions and is now Head of Tax at WorldPay. From 2006 to 2010 he was a councillor for the London Borough of Wandsworth. 19

20 EXECUTIVE MANAGEMENT TEAM Our day-to-day operations are managed by the Executive Management and Operational Management teams. They seek to ensure that customers and neighbourhoods receive excellent, regionally-tailored services in their respective areas. Darrell Mercer Group Chief Executive See previous page. John Knevett Group Chief Commercial Officer and Deputy Group Chief Executive See previous page. Andrew Boyes Executive Director (IT & Facilities) Andrew has more than 24 years experience in IT working across a broad range of business sectors, including housing, insurance, retail and distribution. Prior to his current role, Andrew held three other IT Director roles, including with insurance firms Castle Cover Ltd and RIAS Plc. Andrew is a Financial Services Authority Approved Person. Kathryn Bull Executive Director (Corporate Services) Kathryn has significant senior management experience in the public sector. Prior to her current role, she was Group Director of Risk & Planning at Dominion Housing Group. She was also Assistant Director of Housing at the London Borough of Croydon and was at the London Borough of Wandsworth for six years. 20

21 Andrew Evans Executive Director (Operations) Andrew has over 25 years service delivery experience in both the private and public sectors. Andrew was previously Group Operations Director for A2 Housing Group for 12 years and was Spelthorne Housing Association s Deputy Chief Executive. Andrew is a member of the Institute of Management. Simon Potts Executive Director (Commercial, South) Simon has worked in the housebuilding industry for over 27 years. He has extensive experience of land acquisition, strategic development and brownfield regeneration. Prior to his current role, Simon was Strategic Land Director at Barton Willmore and has also held Director and senior management roles at Hillreed, Bellway, Fairclough and Laing Homes. Dean Tufts Executive Director (Finance & Strategy) Dean is a chartered accountant and has over 25 years experience in the housing sector. Previously Dean was Dominion Housing Group s Finance Director, a role he held for four years. He has also worked for Acton Housing Association and sheltered housing company McCarthy & Stone Plc. Dean is an associate of the Institute of Chartered Accountants in England and Wales. Anne Waterhouse Executive Director (Financial Services) Anne is a chartered accountant with over 15 years finance experience. Prior to her current role, Anne was Deputy Group Finance Director at Dominion Housing Group. She is a member of the Chartered Institute of Management Accountants and has also worked in finance within the housebuilding industry. Nicholas Yeeles Executive Director (Commercial, London) Nicholas career encompasses over 20 years experience in the social housing sector, with an emphasis on business development. Prior to his current role, Nicholas was Chief Executive of Cherwell Housing Trust, part of the Dominion Housing Group. He has held various executive posts in management and development and has worked as a freelance consultant. 21

22 GROUP STRUCTURE A2DOMINION HOUSING GROUP LTD Formed in October 2008, A2Dominion Housing Group Ltd is the nonasset holding parent organisation responsible for the Group s overall strategy and performance. (An exempt charity registered under the Co-operative & Community Benefit Societies Act 2014 Soc. No R, HCA Reg. L4240) A2DOMINION HOMES LTD A2Dominion Homes Ltd has regional offices in Ealing and Oxford and is responsible for managing the Group s homes in London, Oxfordshire, Buckinghamshire, Bristol and Berkshire. (An exempt charity registered under the Co-operative & Community Benefit Societies Act 2014 Soc. No R, HCA Reg. LH0391) A2DOMINION SOUTH LTD A2Dominion South Ltd has a regional office in Staines and is responsible for managing the Group s homes in Surrey, Kent, Hampshire, East and West Sussex and Wiltshire. (An exempt charity registered under the Co-operative & Community Benefit Societies Act 2014 Soc. No R, HCA Reg. LH4149) OTHER SUBSIDIARIES A2Dominion Developments Ltd (Co. No ) A2Dominion Housing Finance Ltd (registered under the Co-operative & Community Benefit Societies Act 2014 Soc. No R) A2Dominion Housing Options Ltd (registered under the Co-operative & Community Benefit Societies Act 2014 Soc. No R, HCA Reg. SL4293) A2Dominion Residential Ltd (Co. No ) A2Dominion Treasury Ltd (Co. No ) 22

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24 BUSINESS PLAN A2Dominion Group The Point 37 North Wharf Road London W2 1BD T F info@a2dominion.co.uk /06/14 - CO A2Dominion Housing Group Ltd (an exempt charity registered under the Co-operative & Community Benefit Societies Act 2014 Soc. No R, HCA Reg. L4240). Registered Office: The Point, 37 North Wharf Road, London, W2 1BD.