Welcome to our Investor Relations Briefing. Genesis Housing Association

Transcription

1 Welcome to our Investor Relations Briefing Genesis Housing Association

2 Session Outline Welcome and introductions Dipesh J. Shah, OBE Strategic overview, performance and report on the year 2016/17 Neil Hadden Financials Elizabeth Froude Questions and Answers End

3 Dipesh J. Shah, OBE Chairman Genesis Housing Association

4 Neil Hadden Chief Executive Genesis Housing Association

5 Review of the Year 1 We reported a solid surplus of 25m in September (last year 22.5m, a figure which was re-stated post-agm following pensions changes). Our turnover was 264.3m (last year 406.4m) Significant increased investment in Repairs & Maintenance spend in last FY stood at 50m (last year 47.2m) Resident satisfaction with last repair 79.9% against target of 75% (Source: The Leadership Factor), 72.3% satisfaction with first call resolution. Regulatory judgement G1, V2. Recognition of our business strategy however was clear. Similar to others in the sector.

6 Review of the Year 2 4.7m worth of procurement savings against a target of 3.5m Social and economic initiatives (CSR) valued at 4.1m according to Housing Association Charitable Trust (HACT) measurements. Up on last year ( 3.7m 15/16). 195 jobs secured for Genesis residents, 809 volunteering placements, 44 apprenticeships. Completion of 195 new homes not on target, but now have 261m worth of development in progress, substantial pipeline 1,128 homes will be delivered by April 2019 (1,383 in total)

7 Merger Notting Hill Housing Following the attempted TVHA merger last year, Board restated its view that further sector consolidation was required Clear Board preference for Notting Hill had talked before and relationships were good, strong partnerships (e.g. temporary housing) Real similarities across so many aspects of what we do: values, geography, founding principles and even those involved in setting the organisations up Natural partners leading to a partnership of equals.

8 Merger Notting Hill Genesis Five Good Reasons to Merge: For our shareholders - continuing our joint mission and social purpose, as set out by our founders For Londoners and the South East - deliver more homes and compete for strategic opportunities For our residents - modern, digital services tailored by tenure For our people - greater career opportunities in a more influential organisation For all - being strategic and more resilient: we can continue to provide services and new homes, even in uncertain times.

9 Oaklands, Old Oak Common 605 new homes social rent, affordable rent, intermediate rent, shared ownership and private sale (40% affordable) Our priority is to deliver 61 social rented homes.these will be the first ones occupied in Current funding environment difficult with 314,000 cost per home and 10% grant. First major scheme granted planning consent by OPDC (Old Oak & Park Royal Development Committee). It signals the start of the transformation of Old Oak and Park Royal. The area will ultimately provide over 25,000 new homes and 65,000 new jobs over the next years. Start on site October 2017 First residents move in October 2019

10 Mildmay, Shoreditch Completion June 2017 Mildmay is a new urban neighbourhood in in Shoreditch. Part funded by the GLA, commenced on site in November homes of which 35% affordable A new church A new specialist hospital Public and managed space 70sqm commercial unit, Hackney Road

11 Grahame Park, Colindale 1,083 new homes 63% affordable. 200 social rent. Awaiting planning decision. Local service delivery following success at Woodberry Down. Headed up by an Area Manager with a local dedicated team. New community hub (owned and managed by Barnet Council) café, community hall, workshops, nursery, health centre, community health facilities and office accommodation. New streets and open spaces, cycle and pedestrian route known as the Woodland Walk Local social & economic investment delivered through Genesis Community Foundation which continues to tackle hardship and support ambition.

12 Merger Notting Hill Genesis We are proposing to be known as Notting Hill Genesis demonstrates our shared history Dipesh J. Shah, OBE chair of Genesis, becomes Chair Designate Kate Davies, CEO at NHH, appointed CEO Designate Elizabeth Froude DCEO at Genesis, appointed DCEO Designate NH remaining CEO at Genesis until the merger completes NH did not apply for the role of Notting Hill Genesis CEO this is a merger of equals, so important the top team is balanced Aiming for completion of merger in early 2018.

13 Celebrating Genesis Prior to merger, the business runs as usual ensuring budget is delivered as expected (in line with Board requirements), KPIs met While merger preparation is important, it is not diverting us from the work we have to do delivering homes, maintaining strength in our Care and Support business etc. Stability in top team means that the business expects to deliver on its targets, our Corporate Strategy remains key The organisation has delivered a huge amount since its inception: much to be proud of join with us in celebrating the impact we ve made.

14 Elizabeth Froude Deputy Chief Executive and Executive Director, Resources Genesis Housing Association

15 Group financial performance

16 Investing for the Future Investment in new housing and investment properties up by 32m to 130.1m (2016: 98.1m) Asset investment of 50.0m (of which 25m was capitalised), 5.0m more than originally planned creating a solid base for the future asset management Other Operating costs up by 2.3% more than income Auto enrolment & Minimum wage increases Insurance Tax increases Second year of mandatory rent cuts ( 2.5m cumulative reduction in income from top line) Staircasing of 231 shared ownership units generating a surplus of 9.0m and sale proceeds of 32m Surplus on sales of other properties 18.1m Reduction in interest costs of 3.0m.

17 Key I&E Ratios 2018 Sept Forecast Actual Actual Actual Operating margin 23% 24% 20% 17% Profit margin 16% 19% 9% 6% EBITDA SALES Cover 176% 155% 150% 149% EBITDA MRI SALES Cover 138% 120% 110% 112% INTEREST COVER Covenant 157% 138% 136% 157%

18 Balance Sheet Ratios 2018 Sept Forecast Actual Actual Actual Net Debt 1.51bn 1.51bn 1.53bn 1.50bn Loan repayments > 5 years 86% 86% 85% 88% Available liquidity 396.7m 258.6m 394.8m 306.2m NBV of Housing Fixed Assets and Investment properties 3.30bn 3.26bn 3.21bn 3.16bn Gearing 42% 42% 42% 44%

19 Strong Balance Sheet & still growing Completions in the year 195 (2016: 314) - Pipeline: 1,128 homes will be delivered by April 2019; - Work in progress 261m Improved gearing - 42% (2016: 44%) Moody s: rating of Baa2 Standard & Poor s (S&P) rating is A-

20 16/17 Financial Performance STATEMENT OF COMPREHENSIVE INCOME 2015/ /17 Increase / ACTUAL ACTUAL decrease m m Turnover (excluding sales) % Operating costs (110.5) -55% (113.0) -57% 2% Repairs & maintenance (22.7) -11% (25.0) -13% 10% Operating surplus before sales % % -12% Third party managed % Landlord payments (51.1) (47.1) -8% Profit on managed schemes 4.7 8% % 94% Sale proceeds % Cost of sales (119.9) (50.0) -58% Sales surplus % % 1% SURPLUS FROM ALL OPERATIONS % % -3% Interest & tax (67.5) (63.2) -6% Fair value adjustment % Housing properties depreciation & impairment (20.1) (19.1) -5% NET SURPLUS AFTER TAX %

21 Half year position: September 2017 Sept 2017 Sept 2017 ACTUAL BUDGET VARIANCE m m m Turnover (excluding sales) (6.1) Operating costs (70.4) (75.1) 4.7 Operating surplus before sales (1.4) Third party managed Landlord payments (22.0) (20.7) (1.3) Profit on managed schemes % % 0.7 Sale proceeds (8.5) Cost of sales (20.5) (24.9) 4.4 Sales surplus % % (4.1) SURPLUS FROM ALL OPERATIONS % % (4.8) Interest & tax (29.6) (33.5) 3.9 Fair value adjustment Housing properties depreciation (10.8) (10.3) (0.5) NET SURPLUS AFTER TAX

22 17/18 Year-end forecast 2015/ / /18 ACTUAL ACTUAL FORECAST m m m Turnover (excluding sales) Operating costs (133.2) (138.0) (144.8) Operating surplus before sales Third party managed Landlord payments (51.1) (47.1) (42.5) Profit on managed schemes 4.7 8% % % Sale proceeds Cost of sales (119.9) (50.0) (58.3) Sales surplus % % % SURPLUS FROM ALL OPERATIONS % % % Interest & tax (67.5) (63.2) (62.8) Fair value adjustment Housing properties depreciation & impairment (20.1) (19.1) (20.5) NET SURPLUS AFTER TAX

23 Questions Investor Relations Briefing Genesis Housing Association