Value-for-Money Self-Assessment 2016
longhurst-group.org.uk
02 Value-for-money self assessment 2016
longhurst-group.org.uk
contents Benchmarking 04 Introduction 05 Business Performance
06
Unit cost analysis
09
Return on assets
11
Building 2,500 new homes
14
Protecting and maximising income streams
16
Reducing our environmental impact
18
Delivering excellent services
20
New acquisitions, amalgamations and partnerships
23
Delivering social value
24
Investing in our people
26
Future plans
28
How we compare
30
04 Value-for-money self assessment 2016
Self-Assessment Structure Our self-assessment sets out how we have achieved VFM in relation to overall Business Plan targets. These are: • Provide at least 2,500 new homes in the next 5 years through traditional and creative development models. • Protect and maximise our income, securing new investment funds and growing our turnover to £105 million per annum by 2016. • Continue to deliver excellent services that reflect innovation, customer service and value for money. • Deliver social value to improve the quality of life for people and communities. • Ensure we reduce our impact on the environment. • Actively seek new acquisitions, amalgamations and partnerships. • Invest in our people at all levels to ensure we can meet future challenges and seize new opportunities. • Manage the risks we face proactively and systematically without becoming either complacent or risk averse. Benchmarking The operational performance information presented in this report compares 2015/16 performance against 2014/15 benchmarked data using HouseMark. Our chosen peer group are Midland based Registered Providers (RPs) with stock between 10-20,000 units. Throughout this assessment, the following are used to denote performance quartiles:
Upper quartile
Upper median quartile
Lower median quartile
longhurst-group.org.uk
Lower quartile
We reviewed our benchmarking approaches across the Group this year and have taken the decision to establish a smaller, more focused benchmarking group. Our first set of results will be available from October 2016 and will include detailed analysis of global accounts data for 15/16. This will be used to inform our business planning and budget setting process and targets for the coming year. VFM Definition We define value for money as the achievement of an optimal balance between economy, efficiency and effectiveness that allows us to achieve our business aims whilst making the best use of our resources and providing high quality homes and services for the best price. To reflect this, when determining whether our services represent value for money, we aim to consider service cost, delivery performance and outcomes, and customer satisfaction. VFM Savings Throughout this self-assessment, we refer to savings and efficiencies, both in cash terms and in the creation of capacity to do more for the same. The savings and gains we refer to in this report are all used to: • Increase capacity to develop new homes and services • Reinvest in our existing homes and services • Achieve business plan approved performance targets
introduction What’s the magic word? Sustainability. At least that’s the word at the front of my mind when I talk about making sound strategic choices and assessing what really constitutes good value-for-money. The decisions we take today define the future, and I intend that ours will be a long one. Today, Longhurst Group supports more than 50,000 customers throughout the Midlands and surrounding areas - tomorrow we’ll be doing more, including building thousands of homes and delivering invaluable community services. The last year has definitely been memorable, but the challenges that have unfolded have also made Longhurst Group a stronger organisation. In responding to external challenges we’ve become more confident about who we are and what we want to achieve, whilst an internal review has made sure we’re ready to deliver it. With our income facing restriction, it’s become even more critical that we operate as efficiently as possible. Value-formoney isn’t just a principle of best practice, it’s the most important tool in our kit-bag. Although the previous year has required us to react quickly to change, we’ve continued to think about the bigger picture. Following a comprehensive review of our governance and structures arrangements, a new Board structure came into effect from 1 January 2016. The more streamlined structure accommodates our ambition to grow and supports greater efficiency, as well as ensuring that Longhurst Group can meet the demands of the sector with speed and agility. Value-for-money isn’t simply a cost assessment and we’re committed to weighing the balance of social value against business expenditure to make sure we’re investing sensibly in local communities, our staff, and our future. During 2015/16, we have continued to deliver services that make an immediate difference to the lives of our customers as well as
invest in decisions designed to future-proof our organisation. We’re proud to be playing a significant role in bringing new homes to the region; that’s why our development programme is the biggest it’s ever been. Community work matters to us too and we’re working in partnership with our contractors to deliver community improvements and employment opportunities for local people. We’re taking a new approach to benchmarking this year and have committed to working with fellow Registered Providers throughout the country to create an independently facilitated benchmarking group. Through sharing focused comparative data, we’ve identified a range of key business indicators that allow us to effectively evaluate our performance. Our reputation for delivering on our promises is built on the foundation of a strong financial performance. This year we’ve delivered a £6.64 million increase in turnover as set out in our 2015 Business Plan and identified £3.35 million value-for-money gains, equivalent to 3.2 per cent of our turnover, in addition to £635,000 of social value gains, the details of which are set out in this report. For access to any of our other reports or latest news, visit our website longhurst-group.org.uk. Julie Doyle, Chief Executive
06 Value-for-money self assessment 2016
business performance The financial performance reported in this section is in accordance with the Accounting Policy Changes - FRS 102 and SORP 2014. The 2015/16 Consolidated Financial Statements have been prepared under these new rules, and the comparative 2014/15 Financial Statements have also been restated to comply with these rules. The impacts of these changes for Longhurst Group, and the sector as a whole, are the way in which Government grants, pensions, and former local authority transfer stock are treated. The consolidated Group net surplus for the year was £7.24 million compared to £9.35 million in 2014/15. The key drivers for change include an additional £2.94 million
pension cost; increased depreciation costs (£664,000); £1.33 million negative movement on property sales, due mainly to the reinstatement of previously written-off grant on Cranwell Court (£1.46 million); and higher cost of sales on Spire Homes disposals, due to the property revaluations (£533,000). This is offset by higher social housing income (£3.5 million), more surplus on first tranche sales (£622,000), and a positive actuarial gain on local government pension schemes of £932,000.
Activities driving turnover Social housing lettings Other social housing activities Non social housing activities
longhurst-group.org.uk
Turnover has increased to £113 million from £106 million in 2014/15. The increase of £6.64 million, includes £3.58 million from social housing lettings (rent up £3.79 million, service charges up £354,000, amortised grant up £48,000, other grant and income down by £614,000). Some of the decrease in other grants and increase in rents is due to the de-registration of care homes and the movement from grant funding to rent income. First tranche sales turnover is up by £4.45 million, development other services is down by £410,000 as a result of lower capitalised A&D costs, and Keystone outright sales are down by £1.3 million as a result of lower sales on The Croft than anticipated, however, more sales on Castle Court are expected in 2016/17.
Activities Driving Operating Costs Social housing lettings Other social housing activities Charges for support services Supporting poeple Managed associations Development services Other non social lettings Other non social community based
Operating costs from social housing letting only, have increased by £2.54 million. However, as previously discussed there has been a £3.55 million movement on pension deficit costs and a £664,000 increase in depreciation. Therefore, without these changes there has been a real decrease in social housing letting operating costs of £1.67 million. This includes £494,000 saving on planned and major works, and a £1.05 million reduction in impairment charges. The savings referred to through out this self assessment are used to create capacity for the development of new homes and reinvestment into our existing homes. Savings will also be used to reduce our operating costs which are set our in our approved Business PlanOperating costs increased by 4.6 per cent from £54.87 million to £57.42 million, and operating costs per unit increased by 2.8 per cent to £3,252, remaining below the 2014/15 sector average cost per unit of £3,290. The Business Plan commits to saving 7.5% on operating costs between now and 2020, in response to rent cuts announced in July 2015.
Operating surplus (£,000) £35,000 £30,000 £25,000 £20,000 £15,000 £10,000 £5,000 £0
£22,632 2012/13
£29,556 2013/14
£32,119
£32,793
2014/15 2015/16
The 2015/16 operating surplus was £32.8 million compared to £32.1 million in 2014/15, with operating margin falling from 30 per cent to 29 per cent over the same period. We expect this to rise to 33 per cent by the end of 2016/17.
08 Value-for-money self assessment 2016
Trends in performance 137%
140%
£35,000
134%
122%
120%
£30,000
100%
£25,000
80%
£24,692
£24,028
£20,000
73%
60%
£15,000
40%
£10,000
20% 0%
£27,646 £27,196
8%
1%
2012/13
9%
6%
£5,000
£3,106
£3,130
£3,163
£3,252
£0 2013/14
Interest cover
2014/15 2015/16 Net margins
2012/13
2013/14
Debt per unit
2014/15 2015/16 Operating costs per unit
Whilst the number of homes we own or manage increased from 18,424 to 18,737 in 2015/16, our management costs per unit increased from £846 to £938. The increase in costs reflects the triennial movement on the Social Housing Pension Scheme (SHPS) which was £3.65million, with this excluded, actual costs have reduced.
longhurst-group.org.uk
understanding our costs Unit cost analysis The Homes and Communities Agency (HCA) published their unit cost analysis in June 2016. The regulator has defined a ‘headline social cost per unit’ measure to analyse Global Accounts cost data, which aims to provide a consistent and robust measure of costs across providers. The data analysed in the tables are taken from the 2014/15 global accounts data, which were published under old UK GAAP and prior to the restatement under FRS 102. Table 1 shows the absolute cost data and how the Group and its subsidiaries compare in relation to the median value. Table 1 Audit Accounts 2014-15 Consolidated
2014-15 Friendship
2014-15 Spire
2014-15 L&H
HCA figures (£’000s) Headline social housing CPU
3.376
4.279
3.753
2.683
Management CPU Service charge CPU
0.800
1.416
0.689
0.544
0.500
0.883
0.285
0.430
Maintenance CPU
0.824
0.987
0.822
0.740
Major repairs CPU
0.912
0.612
1.737
0.576
Other social housing CPU
0.339
0.381
0.220
0.394
Upper
High cost
Higher Median
Above average costs
Lower Median
Below average cost
Lower
Low cost
10 Value-for-money self assessment 2016
The results for Longhurst Group reinforce our understanding of our cost base, and although we are performing above the median across the headline measures, we know there are significantly higher costs within one part of the Group, Friendship Care and Housing. Improvements will be made during 2016/17 and will be addressed through our future VFM objectives. There are included in more detail on our Future Plans section, pg 28. Maintenance costs per unit are low within Spire Homes and L&H Homes compared to the sector, and only just above median within Friendship. Spire Homes’ position is due to a lower average repair cost, whereas L&H Homes’ costs are reduced due to low numbers of repairs per property. There is a £800,000 gap between Friendship’s performance and Spire Homes’ in this area and this is driven by higher average repair costs. Major repair spend shows a slightly above average spend within Friendship and L&H Homes, and a high spend in Spire Homes; however, these figures contain Spire Homes’ last year fulfilling Rutland stock transfer promises, so we would expect a higher cost in this area compared to sector averages. Other social housing costs per unit are higher than average for all companies, with L&H Homes and Friendship in the higher median. This takes account of costs in floating support, leasehold services expenditure, and community based activities; however, the HCA data takes no account of the income, like service charges, offsetting expenditure in this area. Table 2 shows revised figures taking into account of service charge and support income.
Table 2 Audit Accounts 2014-15 Consolidated
2014-15 Friendship
2014-15 Spire
2014-15 L&H
Alternative comparison (£’000s) Headline social housing CPU
2.456
3.027
3.228
2.005
Management CPU
0.800
1.416
0.689
0.544
Service charge CPU
0.088
-0.015
0.073
0.151
Maintenance CPU
0.824
0.987
0.822
0.740
Major repairs CPU
0.912
0.612
1.737
0.576
-0.168
0.028
-0.094
-0.010
Other social housing CPU
We have recalculated the Group’s cost per unit and the global quartiles, taking into account the service charge income and other social housing income. We feel this gives a more comparable position and does not adversely impact our position when providing other services for which we recover the costs. Our analysis highlights Friendship’s management costs as priority area for improvement, to both improve its individual performance and the Group overall. How we compare with our peer group We have compared our performance to our chosen peer group (see page 30). This peer group consists of providers who share similar characteristics and business profile. Our performance holds strong compared with our chosen peer group. However, as we have identified earlier in the report, we will be making further improvements to address high-cost areas, which will have a positive impact overall.
longhurst-group.org.uk
Average Total Cost Per SH Unit £7,000 £6,000 £5,000 £4,000 £3,000 £2,000 £1,000 Median
Overall Peer Group Average
A12
A10
A3
A6
A7
A14
A13
A5
A8
Longhurst Group Limited
A2
A4
A11
A9
A1
£0
Analysis of our financial performance Detailed analysis of our financial performance, including operating costs and margins for each of our business streams is attached to this report. This intelligence is vital during our Organisational change programme and informs our service reviews and performance targets on an annual basis.
Return on assets Operating in 48 local authority areas across the Midlands and East of England, we own and manage over 18,900 homes. Longhurst Group General needs housing
2012/13
2013/14
2014/15
2015/16
12,997
13,215
14,314
14,530
Supported and sheltered housing
1,990
1,987
1,179
1,179
Shared Ownership
1,282
1,388
1,309
1,406
Registered Care housing Leasehold Schemes for the Elderly All owned social housing units Market rent housing Student accommodation All owned units Units managed for other agencies All owned and managed units
177
177
114
116
1,038
1,040
1,074
1,080
17,484
17,807
17,990
18,311
12
12
47
47
7
7
0
0
17,503
17,826
18,037
18,358
474
388
387
379
17,977
18,214
18,424
18,737
12 Value-for-money self assessment 2016
The historic cost of the Group’s housing assets had increased over 2015/16 by £27.9 million to £871 million. Investing in our homes In 2015/16, we developed a Group-wide Asset Management Strategy identifying priorities for investment. Over the year, our revenue investments in housing repairs and maintenance increased to £18,080,000 (up 3.9 per cent from £17.375 million in 2014/15) which includes a £407,000 increase on non-capital works. Our capital investment programme has reduced to £9.3 million compared with £14.91 million in 2014/15 due to completing the large scale voluntary transfer maintenance commitments at Spire Homes.. Performance 2013/14 % stock at Decent Homes standard Satisfaction - quality of home
2014/15
2015/16
99.04%
100.00%
100.0%
85%
85%
83.57%
Benchmark 2014/15
Understanding our assets The rent reduction announced in July 2015, added a further threat to an already challenging operating environment, and increased the importance of understanding how our assets perform and where investment will have the greatest impact. In 2014/15, we worked with Savills to complete an asset modelling project covering over 15,000 of our rented homes, enabling us to understand the financial and social performance of our stock, and informing the review of our Asset Management Strategy. Following the rent reduction announcement, we reviewed our capital investment programme lifecycles to ensure there is consistency across the Group and that we focus investment where it is most effective, whilst maintaining our homes to a standard that is affordable and desirable for our customers. The output from the model highlighted data accuracy issues in some areas, and variations in cost assumptions across the Group. We completed targeted stock surveys and developed a single Group stock survey template, we have now transferred our data to this template. We also added stock value data to the model. Whilst these pieces of work have delayed a systematic analysis of assets, they have put us in a much stronger position in terms of understanding our stock and being able to identify properties that perform weakly relative to value, as well as overall poor-performers. Whilst this work on our asset management data has been underway, we have continued to make more effective use of our assets: • New accessible housing: Four low-demand bedsits and adjacent unused bin stores in Walsall were converted into four wheelchair-accessible flats. The scheme was shortlisted for ‘Innovation of the Year’ at the 24 Housing awards. • Regeneration: Flats over shops in Walsall were refurbished and brought back into use, as well as creating a new office space for staff. This will enable us to move out of our current, much larger premises. We have also used the asset management model for ad hoc projects: • Addressing poorly performing assets: We disposed of 11 poorly-performing properties that required significant investment, generating an income of £157,000 (after taking accounts of clawbacks etc.) which has been reinvested into development. • Identifying long term solutions: In Irthlingborough, a retaining wall near three blocks of flats failed. All options for dealing with this (demolition and stabilisation, demolition and redevelopment, and shoring up the land to protect the flats) involved large but very different sums of money. Our model enabled us to identify the most cost-effective long-term option, rather than the cheapest short-term option, so we will be shoring up the land in 2016/17. • Assessing project viability: We leased a three-bedroom house to East Northamptonshire Council for use as shared accommodation for non-priority single homeless people. The model enabled us to identify a rent that maintained the property’s performance, taking account of expected cost changes. The identified rent was affordable to the Council and enabled them to set licence charges slightly below Local Housing Allowance (LHA) single room rates. • Targeting resources: We used sustainability data from the model to target ICT training at areas with poor internet access, saving around £2,892 in publicity costs.
longhurst-group.org.uk
• Increasing garage viability: We are planning to demolish a garage block in Oundle in order to increase demand in adjacent blocks to boost their sustainability. We have trialled this approach in other locations with satisfactory results. This will also bring in a receipt from the sale of the land. • Conversions: We converted 47 properties from Social Rent to Affordable Rent, generating an additional annual income of £39,663. Priorities for 2016/17 We will continue with our asset management analysis, to identify units that perform poorly (whether generally or relative to their value), and carry out options appraisals to identify appropriate courses of action.
14 Value-for-money self assessment 2016
Provide at least 2,500 new homes in the next five years through traditional and creative development models The environment in which we operate has changed significantly over the last year, following the announcement of the rent cut in July 2015. This had little impact on 2015/16 completions as we continued to provide much-needed new homes for rent and home ownership across our area of operation. We completed 420 new properties, and are on target to meet our business objective to provide at least 2,500 new homes between April 2014 and March 2019. As in previous years, our development programme was achieved with minimal grant funding: £1.5 million in 2015/16 against private funding of over £45 million. We were also successful in achieving an average for first tranche sales of shared ownership properties of 43 per cent (against a target of 30 per cent), which was the main factor enabling us to achieve shared ownership sales income over £4.6 million above target.
New building against deveolpment target
Shared Ownership Sales
3000 2500 2000 1500 1000 500 0
420 582
2500
Actual completion
Target by March 2019
Previous completions
2015/16
2013/14
2014/15
2015/16
Total number of SO properties sold
100
123
179
Total value of SO properties sold
£5,007,734
£7,163,010
£14,905,153
Average tranche sold (%)
38%
39%
43%
Average sales period (months)
5
3
3.5
However, we expect a significant impact in future years on the tenure of the homes we are able to develop. We anticipate an increased move towards low-cost home ownership units, and greater numbers of properties for outright sale and market rent providing cross-subsidy, to allow us to continue to develop new affordable rented homes. In the last two years, our completions have been approximately 67 per cent affordable rented housing and 33 per cent low-cost home ownership products (excluding market rent and outright sale housing). Over the next few years, we expect this to change to around a 40/60 percentage split. In 2015/16, our average build costs per unit were around £112,000 across the Group; we expect this to rise to around £120,000 in the future as more units are developed for sale, because of the higher specification needed on these units. Developing properties for sale will also increase our risk profile; to ameliorate this, we are increasing our target for first tranche sales of shared ownership properties from 30 per cent in 2015/16 to 40 per cent in 2016/17.
longhurst-group.org.uk
Development Programme
Development Programme by Tenure
Units completed in 2015/16
420
Units started in 2015/16
309
Completions due in 2016/17
518
% of s.106 units in 2015/16 completions
72%
Completions 2015/16
Starts 2016/17
Completions due 2016/17
Social rent
51
8
102
Affordable Rent
100
82
71
Grant received for units completed 2015/16
£801,081
95
115
£753,919
Intermediate Rent
96
Other grant (including RCGF & DPF) for units completed 2015/16
124
182
£111,925
Shared ownership
130
Average cost per unit for units completed in 2015/16
0
0
0
Market rent
0
0
0
Outright sale
43
0
19
420
309
489
Deferred equity
Total
Development Savings We have worked hard to develop and maintain good working relationships with developers to maximise our opportunities to acquire new s.106 homes. Our Construction Services Team provides clerk of works and employers agent services on most Group developments; the income generated a surplus in 2015/16 of over £146,000 that is used to reduce Group overheads. In 2014/15, we set up framework agreements for the procurement of consultants and contractors. These have provided lists of approved consultants and contractors for a four-year period and avoid the need for tendering every scheme separately, as well as reducing legal costs and overheads. We estimate this has saved an average of around £20,000 per scheme that is over the OJEU threshold, totalling £30,000 in savings for 2015/16. We have worked with a range of manufacturers (for products such as boilers, radiators, air source heat pumps, valves and pipework) to design systems and indemnify us against breakdown. If we had taken the alternative route of specialist design providers and extended warranties, we estimate this would have cost us an additional £30,000 per year. We obtained rebates of around £21,000 by procuring components direct from the manufacturers, and expect the rebate in 2016/17 to increase to around £40,000.
VFM Gains – Growth Development
Surplus on Construction Services Team on clerk of works/employers’ agent services
Ongoing
Economy
£146,000
Framework agreements for consultants and contractors
Ongoing
Economy
£30,000
Manufacturer indemnities in place of extended warranties
Ongoing
Economy
£30,000
Rebates by procuring products direct from manufacturers
Ongoing
Economy
£21,000 £227,000
16 Value-for-money self assessment 2016
protecting and maximising our income streams Revenue breakdown
Social housing letting revenue streams (£,000) £5,238 £3,337 £6,429
£120,000 £100,000 £80,000 £60,000 £40,000 £20,000 £0 2012/13
2013/14
£71,888
2014/15 2015/16
Social housing lettings
General needs
Other social housing activities
Support housing and housing for older people
Non social housing activities
Low cost home ownership Care homes
longhurst-group.org.uk
Social housing lettings operating surplus (£,000) Universal Credit has now started to roll out significantly across our area of operation, and we also have new tenants who potentially will be affected by the LHA rent cap in 2018. Our work to prepare tenants for these changes and protect our income streams continues.
-£854 £2,071 £1,693
£26,565
An income review has been completed that will move Longhurst Group to a single streamlined policy and procedure, roll out good practice across the Group, and increase efficiencies in managing the income collection process. As part of this, RentSense will be rolled out across the Group by late 2016, to enable us to better prioritise arrears action.
General needs Support housing and housing for older people Low cost home ownership Care homes
Rent Collection Our work to reduce rent arrears continues. Our target in 2015/16 was to reduce the cash value of arrears for general needs (GN) and housing for older people (HOP) tenants by 10 per cent across the Group over the year. We achieved a reduction of 15.2 per cent. This meant that our current GN and HOP arrears fell from 3.75 per cent at the end of 2014/15 to 2.7 per cent at the end of 2015/16, equating to an additional income in 2015/16 of £781,627. We increased the credits on general needs and housing for older people rented accounts by 74 per cent and these credits now stand at 1.80 per cent of debit. This was achieved by asking for advance payments of rent at tenancy sign up, and agreeing small increases in Direct Debit and Standing Order payments to gradually bring tenants to the point where they are paying rent in advance, in line with the terms of their tenancy. By monitoring reductions in credits, we can help customers before changes in their circumstances result in rent arrears. At the end of 2015/16, we ended our Just Rewards scheme, which was intended to reward customers for maintaining a clear rent account. This will save over £117,000 in administrative and reward costs in 2016/17. We plan to review the impact on account balances in 2016/17, and assess whether to pursue a reward scheme that we can operate across the Group in a more cost-effective way and which aligns to our social value and purpose. Empty Homes In 2015/16, rent loss from empty GN and HOP properties fell from 0.82% to 0.72%, equating to an additional income of £74,984 across the Group. This was largely achieved because the number of tenancies terminating fell by 11 per cent to 965, despite increases in the number of units we own. During the year we also reduced void expenditure by £364,000. Money Guidance Our Money Guidance Service continued to provide significant income for the Group and huge social value for customers. In 2015/16, the service assisted 897 customers and generated £196,059 in additional rent for the Group - significantly higher than service costs (around £117,398 in 2015/16). The service also generated additional income for customers in the form of other benefits of £542,222 in 2015/16, and helped customers manage £903,851 of debt. From April 2016, changes in Housing Benefit regulations reduce the length of time that claims can be backdated, this will have an impact on the direct income the service generates for the Group. However, we will continue to offer support and advice services to customers who are affected by welfare reform and the current financial climate, to mitigate the risk to our business and ease financial pressures on customers.
18 Value-for-money self assessment 2016
Recharges We ran a project to target customer recharges, offering to clear the balance of the debt if the customer paid 70 per cent. For recharges raised during 2015/16, this resulted in the initial recharge value falling by 22 per cent (excluding write-offs) from £7,480 to £5,831 at May 2016, significantly higher than typical recovery rates in this areas of 10-15 per cent. Performance 2013/14
2014/15
2015/16
Rent arrears of current tenants as % rent due (GN & HOP)
4.71%
3.75%
2.70%
Rent arrears of former tenants as % rent due (GN & HOP)
1.68%
1.64%
1.57%
Void loss (GN & HOP)
0.88/%
0.82%
0.72%
Rent collected as % rent due (GN & HOP)
98.71%
100.83%
100.15%
Benchmark 2014/15
VFM Gains – Income Protect income streams
Arrears
Reduction in rent arrears
One off
Savings
£781,627
Void loss
Reduction in void loss
One off
Savings
£74,984
One off
Additional income
£78,661
Money guidance Increased income from backdated claims
£935,272
Ensure we reduce our impact on the environment Sustainability is an important part of our social responsibility, and our focus remains the ‘triple bottom line’ of environmental, economic and social improvement. We are committed to reducing our environmental impact in the course of our day to day activities, for example, through improved energy efficiency and recycling in our offices. However, the largest impact can be made through activities including sustainable design and build techniques in our new build development programme, and energy efficiency measures across our existing stock. In 2015, we again achieved the Investors in the Environment (IE) premium ‘Green Award’ for our Environmental Management System (EMS) in acknowledgement of our excellent green credentials. Our established EMS objectives will continue to feature as a priority in all our Group-wide activity, with innovative plans in place to reduce our existing consumption for gas, water and electricity over the course of the next 12 months. At the start of 2015/16, we were in discussion with two funders on plans for a trial installation of solar panels on the roofs of 500 properties. By funding this, we were hoping to recover the original investment by year 10, and generate an additional income of £2 million between years 11 and 20. Unfortunately, this project became unviable following the rent reduction announcement. However, we will continue to investigate opportunities to improve our environmental impact. We had poor satisfaction amongst some customers after replacing kitchen doors to obsolete units with non-matching new doors. As a result of this, when kitchens are removed during major works, any doors in good condition are stored and used for future repairs, increasing customer satisfaction, and the life of older units. This approach has worked well for kitchens, and a similar approach is now being taken for obsolete roof tiles. In both cases, reusable components are removed and stored by the major works contractor, and then collected regularly by the repairs contractor. We also obtained free end-of-range kitchen worktops from a supplier, saving around £3,000.
longhurst-group.org.uk
Tackling Fuel Poverty We spent £1.2 million refurbishing 56 PRC homes, and will recover £29,167 as a result of carbon savings. This is around 50 per cent higher than expected because we were able to complete some properties ahead of schedule to benefit from old ECO funding rates. We continued to work with Billcutter and My Home Energy Switch to get debt cleared from meters in void properties and help new tenants choose the best fuel tariff for them. We will continue this work in 2016/17 with Spark Energy, with void properties moved to tariffs below the ‘Big 6’ standard tariffs to receive between £12.50 and £25 per void in payment. We expect this income to total around £22,500 in 2016/17. Performance 2013/14 SAP rating
2014/15 70
2015/16
70.38
Benchmark 2014/15
71.69
VFM Gains – Income Reducing emissions
Rebate following carbon savings achieved during refurbishment
One off
Savings
Recycling
Reuse of out of date kitchen worktops
One off
Savings
£29,167 £3,000 £32,167
20 Value-for-money self assessment 2016
Continue to deliver excellent services that reflect innovation, customer service and value for money We are committed to providing value-for-money services that are responsive to the changing needs of our customers. Procurement and Contract Management We have made savings of £833,456 in 2015/16, through procurement and management: • We continued to procure materials through the Central Housing Investment Consortium (CHIC), saving around £179,589 in 2015/16 (against a target of £250,000), on (post-savings) expenditure totalling £933,410. • We switched to an annual price-per-property contract across the Group for gas servicing, and expect to save around £71,000 per year from 2016/17. Spire Homes’ contract with Aaron also reached a five-year break point (in a ten-year contract). We were able to extend the contract a further five years, ensuring that we got the best value from the procurement. We estimate this made savings of around £30,000 when compared to the procurement costs of a five-year contract. • In 2014/15, Friendship ended its contract with one of its two main repairs and voids contractors, generating savings of over £350,000 in 2015/16 (the first full year of operation). • Spire Homes extended the repairs and maintenance contract with Keepmoat by a further three years, saving around £18,000 in procurement costs, whilst retaining the social value commitments in the original contract, and increasing the contract price by only 1.06 per cent. This was the first time there has been any increase in price since the contract started in 2012. • We retendered our grounds maintenance service at Spire Homes, achieving a higher specification for the same price. Cut and Collect now covers a larger area, in response to customers’ complaints about uncollected grass. • Friendship reviewed its cleaning programme and negotiated a reduced cost with the existing contractor which saved £4,747 in 2015/16. The service has also been retendered from 2016/17, and will make a further saving of £11,464 per year throughout the five-year contract. • We retendered our mobile phone contract across the Group, resulting in a one-off saving of £69,000. • We saved a total of £53,000 across the Group by rationalising print devices and retendering the contract. The remainder of the contract will see annual full-year savings of £128,000. • We switched our email client service to the Microsoft cloud, achieving one-off contract savings of £50,000, and made further one-off efficiency savings of around £50,000 by delivering the project internally instead of via a consultancy. • We saved over £8,000per annum by setting up new fuel contracts at six different offices and housing schemes. • We saved £21,120 per annum by switching to a single Group membership for Rightmove and Homeswap.
longhurst-group.org.uk
Digital Services We are keen to increase use of our digital services, both to make services more accessible to customers and to reduce costs. For the last two years, customers have been able to view rent statements and report repairs online, and further key services will be rolled out as part of our work to streamline services across the Group. We are working to encourage our customers to use digital means of contacting us, as we know that more customers have access to the internet than use our online services. In 2015/16, we saved a total of £45,636 from increasing our use of digital services and contact: • My Account is our digital service that allows customers to manage their tenancies online. In 2015/16, the average number of tenants logging into My Account each month increased by 79 per cent to 973 (around 6 per cent of our tenants), with accessing rent statements increasing by 82 per cent and reporting repairs increasing by 74 per cent. The number of visits to our website increased by 27 per cent. It is not possible to accurately identify all savings from this: not all tenants accessing rent statements, for example, would have otherwise phoned up for a rent statement. However, all the repairs reports would otherwise have resulted in a phone call with a member of staff, saving around £8,100. However, this is far short of our target savings of £75,000. Whilst the number of customers accessing My Account and our website are still relatively small, there is clearly the potential to increase the numbers of customers regularly using these to access services. • We saved £17,511 in 2015/16 by wider use of email and providing information online against a target of £30,000. It should be noted that we have been unable to financially quantify many savings in this area. • We trialled the use of tablets for front line officers in 2015/16, achieving savings of around £20,025. Tablets will now be rolled out more widely where appropriate. During the next 9-12 months, we will refresh the Group Digital Strategy to ensure we can deliver digital solutions, which provide excellent customer service and drive operating efficiencies in our front-line services and back office functions. ICT Following the review of our ICT strategy in 2014/15, in addition to the procurement savings above, we saved a further £50,500 by extending the lifecycles of our IT equipment from four to six years (this saving will recur annually for a further three years, but saving beyond this timescale will depend on technology demands in the future) and £65,000 from other ICT changes. Housing and Office Reviews We planned to restructure part of our housing service to achieve savings of around £50,000, and ensure office space across the Group was fit-for-purpose by 2016/17 to achieve savings of around £250,000. These plans have now merged into the Group-wide that will continue over the next two years. Transaction Costs Although we offer a range of payment options for customers, we have adopted Direct Debit as our default option, because this is the most cost-effective for us. We made savings of around £22,632 on transaction costs in 2015/16: • We renegotiated the cost of our Allpay contract, resulting in Group savings of £4,175 in 2015/16. We expect this to result in savings of over £6,263 per annum in the future. • We increased the number of Direct Debit transactions by 14,475, and this payment method now accounts for 33.5 per cent of our transactions (excluding Direct Debit payments to Allpay). We estimate this saved around £2,211 in 2015/16. • We closed the over-the-counter payment service in our Beechdale office, the only office that still accepted cash payments, saving around £16,246 per annum. This saving will continue in future years. Monitoring of the Beechdale estate showed that arrears levels there fell 26 per cent over 2015/16, compared to a fall of 8.55 per cent for Friendship overall. One Team, One Vision Approach As the Group restructure progresses, sharing expertise and working together has never been so important for us, and we have been able to create and build on our capacity for change and made real cash savings across the Group. We saved £32,822 across the Group by the temporary appointment of a shared Head of Service across two Group companies. Expertise was shared by our Birmingham Care services, providing direct management support to our poorly-performing care home in our North East operation. This not only controlled the risks but shared expertise and achieved salary savings of around £25,000.
22 Value-for-money self assessment 2016
Other Friendship ended its emergency on call rota for managers, saving £4,480 in 2015/16 (full year savings are expected to be around £7,000), with no reduction in customer satisfaction for the out of hours service.
Performance 2013/14
2014/15
2015/16
Customer satisfaction overall
87%
87%
85.61%
Satisfaction - rent is value for money
82%
82%
82.51%
New PI
65%
64.84%
Customer satisfaction – repairs and maintenance service
79%
81%
79.56%
Average cost of a repair order
N/a
N/a
£143.71
Satisfaction – service charge is value for money
Benchmark 2014/15
Note that performance on satisfaction with the repairs and maintenance service is based on the results of our STAR survey; we also monitor this internally and these results show performance of 95 per cent. VFM Gains – Services and Innovation Services and innovation
Property Services
Contract procurement
Ongoing
Saving
£833,456
Digital Services
Increasing on-line services and activity
Ongoing
Saving
£45,636
ICT
Non-procurement savings
Ongoing
Saving
£115,500
Transaction costs
Reduction in transaction costs
Ongoing
Saving
£22,632
One Team
Sharing expertise
One off
Saving
£57,822 £1,075,046
longhurst-group.org.uk
actively seek new acquisitions, amalgamations and partnerships We have a strong track record of forging mutually beneficial partnerships and hope that further development of new and existing partnerships will generate new opportunities to grow. Collaboration underpins our success, as we recognise the strength of drawing on the knowledge and expertise of local and national partners. We remain alert to opportunities to grow and are open to approaches from others looking to join the Group, and we hope that further development of new and existing partnerships will result in significant growth. Our recent review has ensured we have the appropriate governance and structures in place to accommodate and manage new partnerships and growth. This enables us to provide improved and/ or cheaper service provision and through growth and acquisitions achieves greater economies of scale. Bringing in New Business We have been extremely successful in securing Care and Support contracts in North East Lincolnshire and Birmingham, increasing the total value of our contracts in 2015/16 by 12 per cent to £2.75 million. Our reputation for delivering excellent services has enabled us to secure additional funding for an extra-care scheme for older people in the Midlands; the contract value of £600,000 increases the turnover of the Care side of our business to over £10.7 million. Building strong relationships with other local providers in Birmingham and Rutland has enabled us to safeguard existing Care contracts, delivering much-needed services to the communities we work in, helping to secure income, and strengthening our position in the market place for growth opportunities. Our Care and Repair service is largely funded by local authority contracts, but also provides project management services to self-funding customers requiring adaptations. In 2015/16, £12,966 was raised through this service, an increase of 127 per cent on 2014/15. As lead partners in the Blue Skies Consortium, we coordinate the funding bids of 15 housing providers. Our operation is well regarded by the HCA and attracts considerable levels of grant through various funding schemes. Our initial offer presented for the 2015-18 Affordable Homes Programme awarded us grant for 900 homes, with a robust pipeline of schemes to be negotiated through the continuous market engagement route. Community-Focussed Partnerships In Rutland, we provide capacity-building services under contract to the local authority, setting up a local group that now meets fortnightly to reduce the social isolation of vulnerable individuals. This group is now run by volunteers. Similarly, we are in the process of establishing a peer-support group for people with mental health difficulties, with the aim that this too will be largely self-supporting. VFM Gains – Partnerships Care
Securing existing contracts and increasing contract value
Annually
Additional income
Support
Care and Repair project fees
One off
Savings
£900,000 £12,966 £912,966
24 Value-for-money self assessment 2016
deliver social value to improve the quality of life for people and communities Supporting our Customers and Communities The reduced investment in public services through funding cuts to local authorities continues to pose a threat to the viability of Care and Support services across the country. We have already begun to reorganise our own Care and Support provision in response to these changes and have created a new role, Executive Director of Partnerships, Care and Communities, to further develop and implement a strategy that will allow us to viably continue to support the many vulnerable people who rely on our services. We support over 4,000 people through a range of Care and Support services, community initiatives and assistive technology services, employing over 400 members of staff across our area of operation, enabling us to provide significant social value as we support, empower and enhance the lives of our customers. We cannot ignore the financial challenge of providing these services, but as we harmonise our structures, policies and procedures, we will become more efficient. As we share expertise across the Group, we reduce duplication and waste, and create capacity. Our future strategy for Care sets out clearly how we will continue to evaluate the viability of the services we provide. We maximise the social value of our work wherever possible, taking into account whether we are the best organisation to deliver the value in question and how efficiently and effectively we can do so. Most of our repairs and maintenance contracts include social value provisions, and we work to ensure these are delivered to provide maximum benefit. Social, Financial and Digital Inclusion As previously outlined in this assessment, our Money Guidance Service (after covering its costs in direct income to the Group and helping customers make housing-related benefit claims), achieved additional income of £542,222 for customers and helped them manage £903,851 of debt. Our Care and Repair service achieved a further £61,400 for customers thorough volunteer Benefit Advisors. We achieved social value of £32,220 (using HACT assessment model) from our response and void repairs contract with Keepmoat through a range of projects including: • Employment skills training provided to 21 customers • Apprenticeship promotion events in schools attended by 200 people • Building industry workshop in schools attended by 10 students • First aid training for 10 customers
longhurst-group.org.uk
• Work experience placements for 2 customers • DIY skills training for 5 residents • Permanent employment for 1 customer. We also achieved further social value from our contract with CHIC, including work experience, school/college workshops and apprenticeships. Performance Indicator
2013/14
Customer satisfaction landlord listens and acts on views Customer satisfaction with neighbourhood
2014/15
2015/16
New PI
73%
73.48%
87%
84%
82.74%
Quartile
VFM Gains – Social Value Customer Income
Benefit advice services
One off
Social value
£603,622
Life skills
Employment opportunities and skills training
One off
Social value
£32,220 £635,842
26 Value-for-money self assessment 2016
Invest in our people at all levels to ensure we can meet future challenges and seize new opportunities We value and respect our people, and recognise that our success depends on us having and retaining committed staff and board members who feel valued and supported. Governance and Structures Review In 2015/16, we completed a comprehensive review of our governance arrangements and management structures, and restructured our Board and Executive Leadership Team. Our old federal structure had inevitably become complex, and differences in funding, charitable status, diversification in products, protection of social assets and taxation had led to the creation of different entities, boards and committees. From 1 January 2016, we moved from having 19 Boards and committees across the Group to six. More streamlined board and executive structures are now in place, allowing quicker decision-making processes, more clarity on risk and responsibilities, and better positioning for growth. The new structure brings significant opportunities to streamline how we work, reduce costs, and share skills more effectively across the Group. We expect significant savings of £700,000 in 2016/17, as a result of the restructured Board and Executive Leadership Team. Savings from restructures further down the organisation will follow in subsequent years, as we move away from our historical approach of three landlord companies operating independently to a single, unified organisation, and reduce duplication and inefficiencies. We are reviewing the accreditations and quality marks we have in place across the Group, and determining where we want focus our efforts over the next 12-18 months. Future efficiencies will be achieved though Group-wide accreditations and the removal of individual memberships and affiliations. Training We recognise that excellent services mean ensuring our team are trained to perform their job to their best ability, and that this can result in savings: • In 2015/16, we obtained external funding of £117,425 to contribute towards a range of training for 122 members of staff, and negotiated further discounts of £10,340 on externally provided funding and room hire. • Our in-house training team delivers core Group training. In 2015/16, they also provided ad hoc training on personal development and facilitated six team away days, saving around £18,450 when compared to our past approach of external provision. • Friendship trained a member of staff to deal with disrepair claims, and then brought the service in-house, saving around £21,000 per annum in legal costs in 2015/16 (compared to target savings of £20,000).
longhurst-group.org.uk
Performance Indicator
2013/14
Staff sickness Turnover
2014/15
2015/16
5.2%
6.2%
12.88 days
18.8%
22.5%
22.75%
Quartile N/a
VFM Gains – Corporate Health Training
Disrepair services
External funding received for training
One off
Additional Income
£117,425
Discounts negotiated on training delivery
One off
Economy
£10,340
Internal ad hoc course delivery and team away day facilitation
Ongoing
Economy
£18,450
Bringing disrepair claims in-house
Ongoing
Economy
£21,000 £167,215
28 Value-for-money self assessment 2016
future plans We will continue to focus on innovation, efficiency and value-formoney to ensure that our business is as efficient and effective as possible. We will reduce the Group’s cost base by 7.5 per cent by 2020; this equates to a monetary value of £3.25 million per annum cumulatively by 2020. Our VFM objectives for the next one-two years are given below. It is not possible to quantify all savings planned at this stage, but they all support the overriding target of reduction in cost base by 2020. We will track these projected gains in future VFM self-assessments, and that where amounts are not currently able to be quantified, in future years as these can be calculated we will introduce more accurate forecasting and tracking. Area
VFM Gain
Recurring/ One Off
Efficiency/ Effectiveness/ Economy
Saving
Property Services
From April 2016, all three companies moved to a fixed price pa gas contract (two companies previously had fixed price per service)
Annual
Economy
£71,000 per annum a from 2016/17
Property Services
Vantage review of most efficient means of delivering Group repairs service
Not known
Not known
Not known
Social Value
Closer monitoring of maintenance contract social value undertakings to ensure benefit is maximised
Recurring
Effectiveness
N/a
Customer insight
Review of customer data collection across Group and how used to spread good practice and simplify our approach
Recurring
Efficiency and effectiveness N/a
Complaints
Single stage complaints policy and procedure to be rolled out across the Group
Recurring
Efficiency
N/a
Procurement
Combine Asset and Property Services contracts across the Group over the next few years where this does not create unreasonable risks
Efficiency and economy
Not known
Procurement
Procure new heating systems through Aaron services
Recurring
Economy
£6,840 in 2016/17 then programme dependent
Procurement
New Friendship archiving contract Recurring from Oct 2015 with saving expected from 2016/17 onwards
Economy
£10,000 in 2016/17
longhurst-group.org.uk
Area
VFM Gain
Recurring/ One Off
Efficiency/ Effectiveness/ Economy
Saving
Income
Implementation of single Group income recovery process and RentSense to reduce costs and increase efficiency
Unknown
Unknown
Unknown
Income
Rent culture – review and greater focus on importance of collection
Unknown
Unknown
Unknown
Income
Termination of Just Rewards incentive scheme
Recurring
Economy
£117,296
Extra Income
Rebate from converting void properties to Spark Energy
Recurring
Economy
£22,500
Governance and Staffing Restructures
Savings from reduced Boards and committees and smaller Executive team
Recurring from 2016/17
Economy
£700,000
Policies and procedures
Review of Group policies and procedures to move from separate company versions to one Group approach by March 2019. In 2016/17 this will include all compliance and governance policies
Unknown
Unknown
Unknown
longhurst-group.org.uk 4310
27470
Orbit Group Limited
24650
6425
Nottingham Community Housing Association 2014 Limited
Wellingborough Homes Limited
6850
Grand Union Housing Group
WM Housing Group Limited
4650
Futures Housing Group Limited
4785
18460
Westward Housing Group Limited
5915
Derwent Housing Association Limited
Flagship Housing Group Limited
35800
8750
Cross Keys Homes Limited
12080
8250
Accord Housing Association Limited
The Wrekin Housing Group Limited
4300
Acclaim Housing Group Limited
The Riverside Group Limited
13700
“Stock numbers (GN) including Intermediate & Affordable”
Longhurst Group Limited
Organisation
210
1300
700
1610
4745
2700
560
2525
3100
1510
575
1140
1015
550
1825
Stock numbers (HfOP)
0
470
450
120
4300
725
575
300
25
300
70
75
700
470
215
Stock numbers (Supported)
Data from Statistical Data Return March 2015 (figures rounded)
0
140
80
120
330
35
120
140
0
0
0
0
275
0
115
Stock numbers (Care Homes)
70
1175
875
250
1600
3465
720
420
45
1105
840
350
1175
50
1290
Stock numbers (LCHO)
100
2220
320
1100
830
1720
60
350
0
625
400
0
195
100
400
Leasehold
4690
29955
7210
15280
47605
36115
8460
10585
7820
22000
7800
10315
11610
5470
17545
Total
Benchmarking Peer Group 30 Value-for-money self assessment 2016
F
E
D
C
B
A
11,731
3,392
12,335
12,119
5,928
Management Costs
Other Costs
Operating Margin
Average number of units
324
455
467
416
455
455
455
Management Costs
Units at start of period
Units at end of period
Average number of units
529
455
Other Costs
Operating Margin
Average number of units
£1,323.88
59.39%
1,965
Margin Per Unit - Low Cost Home Ownership
Operating Margin %
Turnover
982
2,178
55.88%
£1,262.45
964
907
882
Units at end of period
Average number of units
685
946
528
856
Management Costs
£710.58
461
324
2,381
Units at start of period
£598.98
866
416
1,338
Management Costs
Management Costs Per Unit - Low Cost Home Ownership
1,191
2,283
36.37%
23.17%
Operating Margin %
Turnover
£1,878.52
£1,162.64
Margin Per Unit - Housing for Older People & Supported
461
£702.82
6,029
5,127
29,063
£914.29
Management Costs Per Unit - Housing for Older People & Supported
12,205
27,846
40.36%
43.52%
Operating Margin %
6,029
£1,945.76
Turnover
5,928
£2,044.54
Average number of units
6,062
Margin Per Unit - General Needs
5,996
Units at end of period
5,996
5,127
3,392
5,859
Management Costs
£850.39
LHH 2015/16 Actual
£572.25
LHH 2014/15 Actual
Units at start of period
Management Costs Per Unit - General Needs
Cost Per Unit KPI’s
1,861
60.02%
£1,267.16
882
982
856
588
£667.04
455
593
1,067
429
2,089
28.39%
£1,303.30
455
455
455
429
£942.86
5,928
9,938
9,938
3,718
26,464
37.55%
£1,676.59
5,928
5,996
5,859
3,718
£627.25
LHH 2014/15 Budget
1,936
60.07%
£1,206.43
964
982
946
579
£600.62
461
865
1,085
299
2,249
38.46%
£1,876.36
461
467
455
299
£648.59
6,029
9,453
12,874
5,127
27,454
34.43%
£1,567.92
6,029
6,062
5,996
4,591
£761.49
LHH 2015/16 Budget
570
74.04%
£1,967.37
215
250
179
49
£228.44
598
1,038
1,662
411
3.111
33.37%
£1,735.79
598
594
602
411
£687.29
4,227
7,904
9,911
3,104
20,919
37.78%
£1,869.88
4,227
4,284
4,170
3,104
£734.33
SPH 2014/15 Actual
778
85.09%
£2,347.52
282
314
250
54
£191.49
588
809
1,734
439
2,982
27.13%
£1,375.85
588
582
594
439
£746.60
4,341
8,891
10,078
3,364
22,333
39.81%
£2,048.15
4,341
4,398
4,284
3,364
£774.94
SPH 2015/16 Actual
587
85.69%
£2,344.99
215
250
179
54
£251.75
598
1,075
1,638
451
3,164
33.98%
£1,797.66
598
594
602
451
£754.18
4,227
7,849
9,878
3,367
21,094
37.21%
£1,856.87
4,227
4,284
4,170
3,367
£796.55
SPH 2014/15 Budget
838
80.19%
£2,382.98
282
314
250
56
£198.58
588
708
1,756
461
2,925
24.21%
£1,204.08
588
582
594
461
£784.01
4,341
8,873
9,705
3,489
22,067
40.21%
£2,044.00
4,341
4,398
4,284
3,489
£803.73
SPH 2015/16 Budget
348
42.24%
£963.93
153
152
153
160
£1,049.18
79
305
445
286
1,036
29.44%
£3,860.76
79
79
79
286
£3,620.25
4,025
6,599
8,054
5,274
19,927
33.12%
£1,639.71
4,025
4,030
4,019
5,274
£1,310.47
FCH 2014/15 Actual
381
52.49%
£1,337.79
150
147
152
136
£909.70
79
96
618
352
1,066
9.01%
£1,215.19
79
79
79
352
£4,455.70
4,048
6,276
9,717
4,487
20,480
30.64%
£1,550.40
4,048
4,066
4,030
4,487
£1,108.45
FCH 2015/16 Actual
334
49.10%
£1,075.41
153
152
153
170
£1,114.75
79
115
595
302
1,012
11.36%
£1,455.70
79
79
79
302
£3,822.78
4,025
4,974
8,579
5,590
19,143
25.98%
£1,235.93
4,025
4,030
4,019
5,590
£1,388.99
FCH 2014/15 Budget
385
65.97%
£1,699.00
150
147
152
131
£876.25
79
126
536
328
990
12.73%
£1,594.94
79
79
79
328
£4,151.90
4,048
4,932
10,621
4,178
19,731
25.00%
£1,218.38
4,048
4,066
4,030
4,178
£1,032.11
FCH 2015/16 Budget
2,883
60.22%
£1,390.47
1,249
1,309
1,188
737
£590.31
1,132
1,872
3,445
1,113
6,430
29.11%
£1,653.71
1,132
1,128
1,136
1,113
£983.22
14,179
26,622
30,300
11,770
68,692
38.76%
£1,877.57
14,179
14,310
14,048
11,770
£830.10
Consol 2014/15 Actual
3,337
62.30%
£1,489.79
1,396
1,443
1,348
875
£627.02
1,128
1,771
3,543
1,115
6,429
27.55%
£1,570.04
1,128
1,128
1,128
1,115
£988.48
14,418
26,898
32,000
12,978
71,876
37.42%
£1,865.58
14,418
14,526
14,310
12,978
£900.12
Consol 2015/16 Actual
2,782
64.13%
£1,428.91
1,249
1,309
1,188
812
£650.38
1,132
1,783
3,300
1,182
6,265
28.46%
£1,575.09
1,132
1,128
1,136
1,182
£1,044.17
14,179
22,761
31,265
12,675
66,701
34.12%
£1,605.26
14,179
14,310
14,048
12,675
£893.93
Consol 2014/15 Budget
3,159
66.13%
£1,496.95
1,396
1,443
1,348
766
£548.91
1,128
1,699
3,377
1,088
6,164
27.56%
£1,506.21
1,128
1,128
1,128
1,088
£964.54
14,418
23,258
33,200
12,794
69,252
33.58%
£1,613.12
14,418
14,526
14,310
12,258
£850.19
Consol 2015/16 Budget
Analysis of our finacial performance
longhurst-group.org.uk
H
G
F
982
-89.78%
1,741
272
3,032
-1,563
72
Turnover
Management Costs
Other Costs
Operating Margin
Average number of units
72
Average number of units
Operating Margin %
72
Units at end of period
£21,708.33
72
Margin Per Unit - Care
272
Units at start of period
1,167
882
Operating Margin
Average number of units
Management Costs
528
270
Management Costs
Other Costs
£3,777.78
1,217
1,965
Management Costs Per Unit - Care
276
59.39%
Operating Margin %
Turnover
73
-571
1,866
321
1,616
-35.33%
£7,821.92
73
74
72
321
£4,397.26
964
685
2,178
55.88%
£1,323.88
Margin Per Unit - Low Cost Home Ownership
£1,262.45
964
907
882
Units at end of period
Average number of units
685
946
528
856
Management Costs
Units at start of period
588
72
-114
1,798
282
1,966
-5.80%
£1,583.33
72
72
72
282
£3,916.67
882
1,117
156
588
1,861
60.02%
£1,267.16
882
982
856
579
73
-330
1,170
266
1,106
-29.84%
£4,520.55
73
74
72
266
£3,643.84
964
1,163
194
579
1,936
60.07%
£1,206.43
964
982
946
49
215
422
99
49
570
74.04%
£1,967.37
215
250
179
54
282
662
62
54
778
85.09%
£2,347.52
282
314
250
54
215
503
30
54
587
85.69%
£2,344.99
215
250
179
56
282
672
110
56
838
80.19%
£2,382.98
282
314
250
160
99
-359
2,994
591
3,226
-11.13%
£3,626.26
99
93
105
591
£5,969.70
153
147
41
160
348
42.24%
£963.93
153
152
153
136
93
-482
2,953
843
3,314
-14.54%
£5,182.80
93
93
93
843
£9,064.52
150
200
45
136
381
52.49%
£1,337.79
150
147
152
170
99
-510
3,038
606
3,134
-16.27%
£5,151.52
99
93
105
606
£6,121.21
153
164
-
170
334
49.10%
£1,075.41
153
152
153
131
93
-360
3,050
754
3,444
-10.45%
£3,870.97
93
93
93
754
£8,107.53
150
254
-
131
385
65.97%
£1,699.00
150
147
152
737
171
-1,922
6,026
863
4,967
-38.70%
£11,239.77
171
165
177
863
£5,046.78
1,249
1,736
410
737
2,883
60.22%
£1,390.47
1,249
1,309
1,188
875
166
-1,053
4,819
1,164
4,930
-21.36%
£6,343.37
166
167
165
1,164
£7,012.05
1,396
2,079
383
875
3,337
62.30%
£1,489.79
1,396
1,443
1,348
812
171
-624
4,836
888
5,100
-12.24%
£3,649.12
171
165
177
888
£5,192.98
1,249
1,784
186
812
2,782
64.13%
£1,428.91
1,249
1,309
1,188
766
166
-690
4,220
1,020
4,550
-15.16%
£4,156.63
166
167
165
1,020
£6,144.58
1,396
2,089
304
766
3,159
66.13%
£1,496.95
1,396
1,443
1,348
032 Value-for-money self assessment 2016
Leverett House, Gilbert Drive, Endeavour Park, Boston, Lincolnshire PE21 7TQ Tel: 0345 30 90 70 Email:
[email protected] Follow: @LonghurstGroup
longhurst-group.org.uk
