Places for People: investors seminar 2012


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Slides from the presentation at the investors seminar held on 4th October 2012.

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Places for People: investors seminar 2012

  1. 1. Group Chairman
  2. 2. Group Executive Director, Finance
  3. 3. 2011/12 2010/11Turnover £369m £340mIncome from lettings £237m £232mOp Profit before interest £96.2m £80.3mProfit before Tax £17.4m £16.5m
  4. 4. Credit Ratings - Moody s Aa3 / stable - Standard & Poor s A+ / stableInterest 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 notwithstandingvolatility in financial markets
  5. 5. Continue to match spending to availablefundingUndrawn committed facilities £312.5M inplaceInvestors continue to support Places forPeople notwithstanding volatility in financialmarkets
  6. 6. 62,500 61,500 60,500 Housing stock ownedUnits 59,500 or managed 58,500 57,500 56,500 Growth in housing stock owned or managed supporting long-term rental income streams. At 1 April 2012, 61,978 homes owned or managed.
  7. 7. Results Analysis 2011/12Revenue Reserves excluding pension liability £m 250 200 150 Revenue Reserves 100 (ex pension liability) 50 0
  8. 8. Key AchievementsGross Fixed Asset Base £ bn 3.5 3.0 2.5 Gross Assets 2.0 (£bn) 1.5 1.0 0.5 0.0 7 years of sustained growth Fixed Asset base remains at £3.1bn £3,060k in 2011 to £3,122k in 2012
  9. 9. Core funding strategy to: Diversify Investor Base Rebalance Debt Portfolio to targeted 60% unsecured Up 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
  10. 10. 2012 2011Pension deficit £35.2m £28.2m Pension scheme has been closed to future accrual as of October 2010 Increase in deficit reflects reduction in discount rate affecting most schemes Plan agreed to eliminate deficit in the next 15 years.
  11. 11. Another Challenging YearRobust LiquidityCashflow, Investment & Cost ControlInterest rate, liquidity and refinancingrisk all contained within strategic target
  12. 12. Group Director, Operations
  13. 13. Operations and Service DeliveryPerformance for 2011/12The Operations Business 61,978 properties Lettings activity £234m > 7,000 property lettings > 2,000 staff across operations
  14. 14. Providing a dedicated housing managementservice to customers in England, Wales andScotlandWe have teams on the ground as well as a24-hour Customer Service Centre whichdeals with around 1,500 calls each day
  15. 15. We have an in-house property maintenance,repairs and gas team which operates 365days a yearCovers c. 90% and all of our gas servicingand property repairs needs232,000 repairs were carried out in 2011/12We have a £150 million five year stockinvestment programme underway
  16. 16. Provision of high-quality care and supportservices for over 40 yearsWe provide homes and services to around7000 clients in over 200 local authority areas
  17. 17. We also provide self funded tailored care andsupport packages to help clients liveindependently in their own home.
  18. 18. The Group has a largecustomer base of long termrentersOur housing stock generatedover £234m of gross rentalincome
  19. 19. (Arrears as a % of total rent) March March 2011 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
  20. 20. Time Taken to Relet an Empty Property(days) March March 2012 2011Group 28.7 23.3Homes 21.0 19.8Individual Support 37.0 30.3Cotman HA 25.0 25.0Castle Rock Edinvar 29.4 25.3
  21. 21. March March 2011 2012Group 1.36 1.16Homes 0.89 0.54Individual Support 3.82 3.89Castle Rock Edinvar 0.80 0.52Cotman HA 0.75 0.69
  22. 22. Property Maintenance - % ofRepairs Completed Within Target Mar2011 Mar 2012Emergency Repairs 98.0% 97.0%Urgent Repairs 94.0% 93.0%Routine Repairs 99.0% 95.0%Gas Servicing Compliance 99.7% 99.9%
  23. 23. Over 82% of customers would recommendPlaces for People as a landlord97% of customers satisfied or very satisfiedwith the repairs service
  24. 24. We continue with a planned programme of workson about 5000 homes a year to continue to meetthe standardIn addition a major programme of fire safety andother compliance work is in progress.
  25. 25. RIDDOR reportable accidents:- 2010/11 2011/12 30 19* RIDDOR - Reporting of Injuries, Diseases and Dangerous Occurrences Regulations
  26. 26. Create Social Value for our Customers e.g. Employment Training Year People People into People into Business Business accessing learning and employment start up supported services training2011/12 3688 1192 351 117 1472010/11 4527 1184 623 32 348
  27. 27. We secured funding from the Future JobsFund to provide opportunities for youngpeople aged 18-24C. 40% (125) have now gone on to full timeemployment.In addition we now have over 25 apprenticesin training.
  28. 28. Reduction of operational costs especiallyrepairsManaging / influencing repairs demandImprovements in operating efficienciesThese continue to flow through to the bottomlineAnticipating and preparing for the changes inwelfare reform
  29. 29. Group Director - Development
  30. 30. Planning approval granted for: Dove Lane250 residential unitsc. 10,500m2 commercial and retail Smiths DockUp to 815 residential units and approx. 6000sqmcommercial development inc. hotelSales at Marlborough Park and Brooklands2 sites with the Scottish Futures Trust
  31. 31. Phase 1 no of units 199Sales/Occupation rate 5.3per monthAverage Selling price£225,624Occupations on site 122Income per sq ft averagein Brooklands = £237Income per sq ft averagenew build in Milton Keynes= £190
  32. 32. Phase 1 no of units 204Sales/Occupation rate 5.9per monthAverage Selling price£148,605Occupations on site 124Income per sq ft averageMarlborough Park = £194Income per sq ft averagenew build in Swindon =£172
  33. 33. Stimulated demandIncreased occupancy ratesDriven a value premiumCreated organically mixed communitiesBroken down barriers to, and negativeperceptions of, affordable housingHelped people access a homeBuilt in flexibility and value for the future
  34. 34. Tenure Mix
  35. 35. Group Director Business Development
  36. 36. New services provided to existing andnew customersInvestment in new assets and businessopportunitiesAchieve growth and from profitablerevenue based activitiesDrive commercial returns on our internalexpertise
  37. 37. Creating clearer routes tomarketExpanding our CoreBusinessB2B/Out-sourcingExpanding our B2C servicePrivate rented sectorGreen Services businessRetirement market
  38. 38. Reinforce our PRS Landlordbrand valueLaunch our ResidentialManagement Services Offerto Investors/ reluctantLandlords
  39. 39. Marlborough Park, SwindonNew and flexibleindependent and assistedliving modelsAspirational not a distresschoiceInnovative financial ,investment & tenure modelsLifestyle premium not justcare but hotel servicesAssistive technology &Telecare services
  40. 40. Energy Services JVEU compliant deliveryvehicleGreen Deal/SupplierObligation - ?Green Services HubRetrofit R&D
  41. 41. Externalising the Group splacemaking approachLong term investment planFlexible tenure marketingstrategyInnovative S106 andmarket rent proposalsFully integrated Group offer
  42. 42. Developing our business Maximise new market opportunities Create profitable revenue streams and investment opportunities Respond to B2B and B2C emerging markets Deliver to a wider customer base Clear routes to market Ensure a balanced portfolio in terms of market sectors, risk, returns and timescales
  43. 43. Group Chief Executive
  44. 44. Dwelling Completions (England)Source : CLG
  45. 45. Trends in UK Housing Tenure 1980 to 2009-10 Owner occupiersmillion households Social renters Private renters 2016 Source: CLG If these trends continue, there could be over 5.5m private rented households by 2016
  46. 46. The number of households in defined poverty and relianton Housing benefit has risen by 750,00 in the last threeyears63% of households in social rented housing in receipt ofHousing Benefits compared to 25% of households in theprivate rented sectorThe number of our customers now paying by DirectDebit increased by 11.4% between 2011 and 2012.
  47. 47. Enable access to housing in places that meetpeople s aspirations, in a way that suits theircircumstances: New build housing Flexible housing products Decent Neighbourhoods Place Management
  48. 48. A range ofrequirements A range of solutions
  49. 49. Neighbourhoods StrategyWorking to a standard strips out waste andduplication, empowering local residentsStarting to see the results in ourneighbourhoods where we have adopted thisapproachNew work streams in regeneration
  50. 50. Development ServicesMasterplanning Place ManagementPartnerships & Facilities FacilitiesJVs Management Management Asset Management Ensuring Care and Support Successful Places Sales Regeneration Access Affordable rent Rent conversion Save a deposit scheme Try before you Buy Market rent
  51. 51. Platinum Award in the BiTC 2012 CorporateResponsibility IndexNeighbourhood plans in place covering over10,000 homesEnergy saving measures in nearly 4000 homesThrough the Future Jobs Fund 124 peoplesecured employment and 8 people full-timeeducation.
  52. 52. Getting maximum value from our currentstrengths Development of Places Property Management Leveraging our products and services Selling our products and services into new markets New services
  53. 53. Getting maximum value from our currentstrengths Long term investment in places Strong Management Diversity of business Creating value Our people
  54. 54. Deliver 2012/13 Business Plan andbudgetsLong-term strategyOpportunities arising from changes in theHousing Market and Government Policy
  55. 55. Alan Curtis Kay