places for people: investors seminar 2012
DESCRIPTION
Slides from the presentation at the investors seminar held on 4th October 2012.TRANSCRIPT
Group Chairman
Group Executive Director, Finance
2011/12 2010/11
Turnover £369m £340mIncome from lettings £237m £232mOp Profit before interest £96.2m £80.3mProfit before Tax £17.4m £16.5m
Credit Ratings - Moody s Aa3 / stable- Standard & Poor s A+ / stable
Interest Cover before depn - 1.4xInterest Cover after depn - 1.2xInterest rate risk - contained at 25%Gearing - 49.9%Continue to match spending to available fundingUndrawn committed facilities £312.5M in placeInvestors continue to support Places for People notwithstanding volatility in financial markets
Continue to match spending to available fundingUndrawn committed facilities £312.5M in placeInvestors continue to support Places for People notwithstanding volatility in financial markets
56,500
57,500
58,500
59,500
60,500
61,500
62,500
Housing stock ownedor managed
Growth in housing stock owned or managed Growth in housing stock owned or managed supporting longsupporting long--term rental income streams.term rental income streams.
At 1 April 2012, 61,978 homes owned or managed. At 1 April 2012, 61,978 homes owned or managed.
Units
Results Analysis 2011/12Revenue Reserves excluding pension liability
0
50
100
150
200
250
Revenue Reserves(ex pension liability)
£ m
Key Achievements Gross Fixed Asset Base
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
GrossAssets(£bn)
7 years of sustained growthFixed Asset base remains at £3.1bn£3,060k in 2011 to £3,122k in 2012
£ bn
Core funding strategy to: Diversify Investor BaseRebalance Debt Portfolio to targeted 60% unsecuredUp from a base of 5% of total debt two years ago to 35%A further £40M at 1% + RPI Linked issued on Retail Bond Market
2012 2011
Pension deficit £35.2m £28.2m
Pension scheme has been closed to future accrual as of October 2010Increase in deficit reflects reduction in discount rate affecting most schemesPlan agreed to eliminate deficit in the next 15 years.
Another Challenging YearRobust LiquidityCashflow, Investment & Cost ControlInterest rate, liquidity and refinancing risk all contained within strategic target
Group Director, Operations
Operations and Service Delivery Performance for 2011/12
The Operations Business
61,978 propertiesLettings activity £234m> 7,000 property lettings> 2,000 staff across operations
Providing a dedicated housing management service to customers in England, Wales and Scotland
We have teams on the ground as well as a 24-hour Customer Service Centre which deals with around 1,500 calls each day
We have an in-house property maintenance, repairs and gas team which operates 365 days a year
Covers c. 90% and all of our gas servicing and property repairs needs
232,000 repairs were carried out in 2011/12
We have a £150 million five year stock investment programme underway
Provision of high-quality care and support services for over 40 years
We provide homes and services to around 7000 clients in over 200 local authority areas
We also provide self funded tailored care and support packages to help clients live independently in their own home.
The Group has a large customer base of long term renters
Our housing stock generated over £234m of gross rental income
March 2011
March 2012
Group 3.19 2.77
Homes 2.90 2.56
Individual Support 1.40 1.06
Castle Rock Edinvar 3.71 3.53
Cotman HA 4.01 4.52
(Arrears as a % of total rent)
Time Taken to Relet an Empty Property (days)
March 2011
March 2012
Group 28.7 23.3
Homes 21.0 19.8
Individual Support 37.0 30.3
Cotman HA 25.0 25.0
Castle Rock Edinvar 29.4 25.3
March 2011
March2012
Group 1.36 1.16
Homes 0.89 0.54
Individual Support 3.82 3.89
Castle Rock Edinvar 0.80 0.52
Cotman HA 0.75 0.69
Mar2011 Mar 2012
Emergency Repairs 98.0% 97.0%
Urgent Repairs 94.0% 93.0%
Routine Repairs 99.0% 95.0%
Gas Servicing Compliance 99.7% 99.9%
Property Maintenance - % of Repairs Completed Within Target
Over 82% of customers would recommend Places for People as a landlord
97% of customers satisfied or very satisfied with the repairs service
We continue with a planned programme of works on about 5000 homes a year to continue to meet the standard
In addition a major programme of fire safety and other compliance work is in progress.
RIDDOR reportable accidents:-
2010/11 2011/12
30 19
* RIDDOR - Reporting of Injuries, Diseases and Dangerous Occurrences Regulations
Create Social Value for our Customerse.g. Employment Training
Year People accessing services
People into learning and
training
People into employment
Business start up
Business supported
2011/12 3688 1192 351 117 147
2010/11 4527 1184 623 32 348
We secured funding from the Future Jobs Fund to provide opportunities for young people aged 18-24
C. 40% (125) have now gone on to full time employment.
In addition we now have over 25 apprentices in training.
Reduction of operational costs especially repairs
Managing / influencing repairs demand
Improvements in operating efficiencies
These continue to flow through to the bottom line
Anticipating and preparing for the changes in welfare reform
Group Director - Development
Planning approval granted for:
Dove Lane 250 residential unitsc. 10,500m2 commercial and retail
Smiths DockUp to 815 residential units and approx. 6000sqm commercial development inc. hotel
Sales at Marlborough Park and Brooklands
2 sites with the Scottish Futures Trust
Phase 1 no of units 199Sales/Occupation rate 5.3 per monthAverage Selling price £225,624 Occupations on site 122Income per sq ft average in Brooklands = £237Income per sq ft average new build in Milton Keynes = £190
Phase 1 no of units 204Sales/Occupation rate 5.9 per monthAverage Selling price £148,605Occupations on site 124Income per sq ft average Marlborough Park = £194Income per sq ft average new build in Swindon = £172
Stimulated demandIncreased occupancy ratesDriven a value premiumCreated organically mixed communitiesBroken down barriers to, and negative perceptions of, affordable housingHelped people access a homeBuilt in flexibility and value for the future
Tenure Mix
Group Director Business Development
New services provided to existing and new customersInvestment in new assets and business opportunitiesAchieve growth and from profitable revenue based activitiesDrive commercial returns on our internal expertise
Creating clearer routes to marketExpanding our Core BusinessB2B/Out-sourcingExpanding our B2C servicePrivate rented sectorGreen Services business Retirement market
Reinforce our PRS Landlord brand valueLaunch our Residential Management Services Offer to Investors/ reluctant Landlords
Marlborough Park, SwindonNew and flexible independent and assisted living modelsAspirational not a distress choiceInnovative financial , investment & tenure modelsLifestyle premium not just care but hotel servicesAssistive technology & Telecare services
Energy Services JVEU compliant delivery vehicleGreen Deal/Supplier Obligation - ?Green Services HubRetrofit R&D
Externalising the Group s placemaking approach Long term investment planFlexible tenure marketing strategyInnovative S106 and market rent proposalsFully integrated Group offer
Developing our business
Maximise new market opportunities Create profitable revenue streams and investment opportunitiesRespond to B2B and B2C emerging markets Deliver to a wider customer base Clear routes to marketEnsure a balanced portfolio in terms of market sectors, risk, returns and timescales
Group Chief Executive
Source : CLG
Dwelling Completions (England)
Trends in UK Housing Tenure 1980 to 2009-10
Source: CLG
Owner occupiers
Social renters
mill
ion
hous
ehol
ds
Private renters
If these trends continue, there could be over 5.5m private rented households by 2016
2016
The number of households in defined poverty and reliant on Housing benefit has risen by 750,00 in the last three years
63% of households in social rented housing in receipt of Housing Benefits compared to 25% of households in the private rented sector
The number of our customers now paying by Direct Debit increased by 11.4% between 2011 and 2012.
Enable access to housing in places that meet people s aspirations, in a way that suits their circumstances:
New build housingFlexible housing productsDecent NeighbourhoodsPlace Management
A range of requirements
A range of solutions
Neighbourhoods Strategy
Working to a standard strips out waste and duplication, empowering local residents
Starting to see the results in our neighbourhoods where we have adopted this approach
New work streams in regeneration
DevelopmentMasterplanningPartnerships & JVs
AccessAffordable rent
Rent conversionSave a deposit scheme
Try before you BuyMarket rent
ServicesPlace Management
Facilities Management
Asset ManagementCare and Support Ensuring
Successful Places
FacilitiesManagement
Sales Regeneration
Platinum Award in the BiTC 2012 Corporate Responsibility Index
Neighbourhood plans in place covering over 10,000 homes
Energy saving measures in nearly 4000 homes
Through the Future Jobs Fund 124 people secured employment and 8 people full-time education.
Getting maximum value from our current strengths
Development of Places
Property Management
Leveraging our products and services
Selling our products and services into new markets
New services
Getting maximum value from our current strengths
Long term investment in places
Strong Management
Diversity of business
Creating value
Our people
Deliver 2012/13 Business Plan and budgets
Long-term strategy
Opportunities arising from changes in the Housing Market and Government Policy
Alan Curtis Kay