1. home and garden

BUSINESS PLAN
2013 – 2016
BUSINESS PLAN
CONTENTS
CHAIR’S
FOREWORD
This business plan for 2013-16 is the development of our core strategy.
Its key elements are wide-ranging, ensuring both our customers and
stakeholders benefit from our achievements.
An annual development programme, increasing from 900 homes to 1,500
homes per year over the term of the plan will be delivered. These will
range from social rent to private sale, taking care to fit individual lifestyles
and aspirations while retaining affordability.
In a difficult economic environment, we will look to expand our services
to help those residents that need it most. Driving through more effective
services, whilst achieving cost savings through efficiencies and better
procurement, will further strengthen our financial viability and ensure we
remain attractive to investors and lenders.
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
This growth plan is only possible because of the strong platform that
has been built over recent years, for which our thanks are given to
everyone connected with the organisation.
16 Financial forecasting
18 Board of management
20 Executive Management Team
22 Group structure
“This growth plan is
only possible because
of the strong platform
that has been built over
recent years...”
It will act as our compass, but we may need to change course
to deal with the challenges that lie ahead. These include welfare
reform, particularly direct payments, the ring-fencing of assets as
proposed by the Homes and Communities Agency, as well as the
uncertainties of the property market.
I am confident that with the expertise and dedication of those
driving A2Dominion forward – our staff, partners, advisers, and my
board colleagues – any challenges can be met and overcome.
Derek Joseph, Chair
2
3
VISION AND
OBJECTIVES
ORGANISATIONAL
PROFILE
Our vision is simple...
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
... TO IMPROVE PEOPLE’S LIVES THROUGH
QUALITY HOMES AND SERVICES
East and thousands more in the development pipeline, we offer a wide range
of homes for rent and sale.
From affordable housing and private rentals, to specialist accommodation for
key workers, students, older and vulnerable people, we cater for all needs.
To help us realise our vision, we have four strategic objectives:
And through our A2Dominion New Homes brand we provide high quality
homes for sale, shared ownership and investment, in some of the UK’s most
•
•
•
•
PROVIDE NEW QUALITY HOMES AND PLACES.
DELIVER CUSTOMER-LED SERVICES.
INVEST IN HOMES AND LOCAL COMMUNITIES.
STRENGTHEN OUR BUSINESS.
desirable areas.
A REGIONAL
PLAYER
We have a strong presence in London, Surrey, Berkshire, Oxfordshire and
Hampshire, owning 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
Since its formation, the Group has generated increasing levels of surplus
through commercial activities, procurement and by driving down costs. These
surpluses are reinvested to deliver more homes, improved frontline services
and community initiatives.
4
5
FINANCIAL
STRENGTH
VALUED AND
ENGAGED
CHANGING
TIMES
GROUND-BREAKING
PARTNERSHIPS
Changes in the funding of social housing have led us to
Resident feedback and involvement helps determine the
Changes in the economy, regulation, funding, legislation
A2Dominion has launched two joint venture companies,
review our business model with increased reliance on
scope and standard of A2Dominion’s services, as well as its
and housing and welfare policy all impact directly on the
known as Pyramid Plus, that are delivering responsive and
commercial activities and private investment. The Group
improvement and investment priorities. The Group actively
organisation and our residents. This affects where and how we
void repairs to our residents. Created with contractors Breyer
remains financially strong with:
promotes equal access and opportunity, tailoring its services
develop, what homes and services we provide, and at what
and MITIE, the services are worth approximately £15m per
to meet customers’ different needs and targeting specialist
cost. In addition, new technology is transforming how our
year, with the potential to expand their service remit to other
services and support at its most vulnerable residents.
customers access our services and engage with the business.
housing and facilities management providers.
For instance, A2Dominion’s enterprise initiative, ‘Be Inspired’,
Particular issues impacting on this plan include:
We are also developing proposals for new joint ventures to
•
•
•
•
•
As at 31 March 2012
£2.8bn asset base
£250m annual turnover
£59m annual operating surplus
£69m in annual sales income
£29m annual grant funding received from HCA.
is designed to help young people to plan their future
through apprenticeships, mentoring, bursaries, training and
provide and manage homes to rent in the private sector.
•
welfare reform and changes to the Supporting People
regime
employment opportunities and career and business advice.
•
an uncertain economic outlook, a continued climate
of austerity and the drive for greater efficiency,
transparency and cost comparison
•
A RANGE OF
TENURES
As at 31 March 2013
EFFECTIVE
CO-REGULATION
a need for cross-subsidy as a result of significant
reductions in grant funding and the new affordable rent
OUR
ACCREDITATIONS
framework
•
changes in regulation with the focus on financial viability
•
and governance
Strong governance, risk, audit and performance management
Tenure
Total
General needs
Shared ownership
Key worker
Leasehold
Supported housing
Student accommodation
Housing for older people
Freehold
Temporary accommodation
Market rented
Other
17,665
4,103
2,813
2,777
1,524
1,109
925
818
761
409
1,439
TOTAL
34,343
frameworks all help to safeguard the financial and corporate
•
UK Housing Awards 2013 - Winner of Business
Transformation of the Year.
greater emphasis on local authority relationships and
new commercial partnerships.
•
Sunday Times Top 100 not-for-profit organisation to
work for 2013.
health of our organisation, as well as the interests of our
residents. Continuous improvements are achieved through
our resident-led Service Improvement Groups, our ‘Lean’
programme of business process reviews and periodic selfassessment, all informed by stakeholder engagement.
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
•
Investors in People Gold award.
•
Sustainable Homes Index For Tomorrow (SHIFT)
Rating 2012 Silver award.
•
of Best Digital Marketing.
around 900 staff at A2Dominion and 100 at Pyramid Plus,
who all 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
Affordable Home Ownership Awards 2012 - Winner
•
Top 100 biggest regeneration projects
(Regeneration & Renewal 2013) - Green Man Lane.
•
Considerate Constructors Bronze award 2013.
and absence rates. A2Dominion is a Sunday Times Top 100
not-for-profit organisation to work for 2013 and in the top one
per cent of Investors in People organisations.
6
7
PROVIDE NEW
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 2013 – 2016
Deliver a wide range of high
quality, environmentally-sustainable
new homes and places.
•
•
•
•
•
8
Deliver 3,600 new homes by April 2016 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 2011–14 Homes and Communities Agency affordable homes programme,
delivering 238 homes.
Start work on site in 2013 to deliver the North West Bicester Eco Town exemplar, with
the first units available for occupation in Winter 2014 and the first stage exemplar
completed by 2017.
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 market rent properties annually, 450 by 2016.
Grow commercial activities to
generate subsidy for new social
housing provision and investment in
existing homes and services.
•
•
Deliver a surplus of £69m over the period 2013–16 from sales.
Pursue partnership work and joint ventures to secure new provision and investment to
deliver up to £200m worth of market rent homes.
9
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 2013 – 2016
Improve resident satisfaction
with A2Dominion’s services and
continue to develop accessible
services based on residents’ needs.
•
•
•
10
Implement our Quality Assurance and Survey programmes to ensure services meet
required standards.
Review the role of the Customer Services Centre and service delivery teams to improve
customer experience and first-time resolution of enquiries by November 2013.
Increase take-up of online services, extending ‘My Account’ transactions to payments,
direct debits and estate services by March 2016.
Improve responsive repairs service
whilst achieving value for money.
•
Develop the new Pyramid Plus repairs services to achieve customer satisfaction of no
less than 85% and deliver financial returns in line with its business plan targets.
Build a first-class leasehold service
with fair, transparent charges.
•
•
Complete a review of sinking funds for all shared ownership schemes by March 2014.
Continue to drive service improvements with an associated increase in leaseholder
satisfaction.
Minimise impact of welfare reform
on customers and income streams
to ensure tenancies are sustained.
•
Measure the impact of welfare reforms on A2Dominion customers with the aim of
directing advice and support where most needed.
Deliver our under-occupation strategy by March 2014.
•
11
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 residents to develop
safe, sustainable communities where they play an active role and have
positive life experiences.
Supporting goals
Targets 2013 – 2016
Maintain all our homes to Decent
Homes Standards, affordable to
run and sustainable environmental
impact.
•
Maintain clean and safe
neighbourhoods and estates with
an associated increase in resident
satisfaction.
•
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 residents.
•
•
•
•
•
•
•
Undertake regeneration where
needs and opportunities exist.
•
•
Sustain our Care & Support
services subject to continued local
authority funding.
•
•
12
Deliver the £74m planned and cyclical maintenance programme for refurbishment and
upgrading of homes.
Improve environmental performance as measured by increased energy ratings and
achieve Gold ‘SHIFT’ status by 2015.
Provide better support for victims of antisocial behaviour with roll-out of a new callhandling process from September 2013.
Carry out communal repairs more efficiently by getting repairs staff and contractors on
site more quickly from October 2013.
Consolidate our area of social housing provision to 54 local authorities by 2016 through
stock rationalisation.
Create local asset management plans that are specific to each local authority as set out
in our Asset Management Strategy: 11 by April 2014 and 39 completed by 2016.
Continue to deliver our annual Priority Neighbourhoods programme of specialist
interventions, and employment and training signposting in 10 identified areas.
Offer up to 40 employment and training placements in 2013/14 and establish strong
partnerships to provide opportunities to improve the skills of residents including
financial literacy.
Deliver Year 2 of our ‘Be Inspired’ programme for young people including mentoring,
bursaries and business support by April 2014.
Offer 10 apprenticeships per year within A2Dominion, its estate services contractors
and Pyramid Plus.
Complete final phase regernation of approximately 80 homes at Stanwell by March
2016.
Complete Phase 2 construction of 186 homes at Green Man Lane by March 2016.
Actively bid for and pursue opportunities as a result of effective frameworks including
the West London Alliance Supported Housing framework, Hampshire Domiciliary Care
and West Berkshire Domiciliary Care.
Renegotiate our existing three-year contracts with Surrey Older People, Reading Extra
Care and Hampshire Floating Support in 2016.
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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 2013 – 2016
Recruit and retain a skilled,
motivated, and representative
workforce and promote a culture of
innovation.
•
•
Simplify key business processes
supported by effective use of IT.
•
•
•
•
Deliver IT strategy 2013–16 with completion of key projects.
Simplify income management for general needs housing, keyworker, care & support
and temporary accommodation by 2014.
Continue to implement a programme of Lean business reviews in both front-line and
back-office services to deliver efficiency targets and service improvements.
Implement a new financial system, including payments processing.
Maximise income.
•
•
Deliver operating surpluses of £174m over the period 2013–16, excluding 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 £1.7m efficiency savings in 2013/2014.
Understand, publish and compare costs of core services and set efficiency targets
where appropriate.
Implement Office Premises Strategy and redevelop office facilities in Ealing and Staines
by 2015.
Review tender for development contractor frameworks by April 2016.
•
•
•
Maximise long-term funding
opportunities.
14
Retain Investors in People standard in August 2014.
Increase staff satisfaction as measured by the Sunday Times Best Companies survey
and retain top 100 position.
Implement talent management strategy and succession planning by June 2013.
•
•
Raise a minimum of £100m private investment with the launch of a retail bond in 2013.
Explore opportunities for a new commercial joint venture for the provision and
management of an expanding private rented portfolio by 2014.
15
FINANCIAL
FORECASTING
As at 31 March 2013
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
BALANCE SHEET
FORECAST INCOME
AND EXPENDITURE
Social housing turnover
Operating costs
Depreciation on housing properties
Social housing operating surplus
Forecast
2014
£m
Forecast
2015
£m
Forecast
2016
£m
Forecast
2017
£m
Forecast
2018
£m
196.6
208.9
223.9
238.0
252.8
(125.4)
(123.8)
(132.1)
(140.3)
(146.5)
(23.7)
(24.7)
(25.8)
(26.8)
(27.9)
47.5
60.5
66.0
71.0
78.4
Property sales
70.7
128.6
208.2
232.3
203.6
Cost of sales
(57.2)
(113.8)
(167.1)
(173.0)
(150.8)
Surplus on property sales
13.5
14.8
41.1
59.3
52.7
Surplus before interest
61.0
75.2
107.1
130.2
131.1
0.3
0.2
0.1
0.2
0.5
Interest receiveable
Interest payable
Surplus for period before tax
Tax payable
Surplus for period after tax
(47.2)
(51.5)
(57.7)
(58.3)
(62.9)
14.1
24.0
49.5
72.2
68.7
0.0
0.0
0.0
0.0
0.0
14.1
24.0
49.5
72.2
68.7
Accumlated surplus brought forward
570.1
584.2
608.2
657.7
729.9
Accumulated surplus carried forward
584.2
608.2
657.7
729.9
798.6
Forecast
2014
£m
Forecast
2016
£m
Forecast
2017
£m
Forecast
2018
£m
Fixed assets
Housing assets
Social housing grant
Depreciation
Other fixed assets
2,931.8
3,056.8
3,193.3
3,356.2
3,463.8
(1,183.4)
(1,199.1)
(1,214.6)
(1,224.6)
(1,231.2)
(129.7)
(154.3)
(180.2)
(206.9)
(234.8)
14.2
13.3
12.7
12.4
12.2
1,633.0
1,716.6
1,811.2
1,937.1
2,010.0
12.0
14.6
12.9
12.9
12.2
Total current assets
307.4
335.0
318.2
248.4
150.5
Total current liabilities
(32.7)
(32.7)
(32.7)
(32.7)
(32.7)
Net current assets / (liabilities)
274.7
302.3
285.5
215.7
117.8
Total assets less current liabilities
1,919.7
2,033.5
2,109.6
2,165.7
2,140.0
Long-term loans
Total fixed assets
Long-term investments
1,268.4
1,364.7
1,397.7
1,382.8
1,289.6
Long-term creditors
40.9
34.5
28.0
26.8
25.6
Designated reserve
26.2
26.2
26.2
26.2
26.2
584.2
608.2
657.7
729.9
798.6
1,919.7
2,033.5
2,109.6
2,165.7
2,140.0
Accumulated surplus
Total financing and reserves
16
Forecast
2015
£m
17
John Knevett
John has worked in the housing sector for more than 20 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.
BOARD OF
MANAGEMENT
The Group Board steers and directs the activities of the organisation. Members are chosen to
Andy Leahy
Andy has worked in the housing sector for more than 25 years, with
experience spanning development, senior management and consultancy
roles. He is now Managing Director of a company providing consultancy
services on affordable housing and development viability.
ensure a broad cross-section of skills and experience within the housing sector.
18
Derek Joseph (Chair)
David Lewis
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, the London
Housing Federation and a trustee of the Theatre Royal Stratford East.
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.
Tez Cook
Darrell Mercer
Tez is an A2Dominion resident and the elected Chair of A2Dominion’s
Customer Services Committee. With five years’ involvement with the
organisation, he was previously a representative on A2 Housing’s Resident
Executive Group and the founding member of Winchester Residents
Forum. Tez currently works at Hampshire County Council in its Drug and
Alcohol Action Team.
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.
Susan Eggleton
Alethea Siow
Susan is a qualified 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
working as Business Director for the NHS Trust Development Authority
and is a trustee of The Liver Group charity.
Alethea is a solicitor and has been involved in social housing
governance for over a decade. She currently leads Blackfriars
Investments’ Structured Finance department where her role
includes structuring property-related transactions, managing banking
syndicates and coordinating corporate acquisitions.
Brenda Jenner
David Walden
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.
David is a chartered accountant with over 25 years’ experience in
international taxation, mergers and acquisitions. David worked for
PricewaterhouseCoopers, Standard Chartered Bank and UBS during
his City career. In 2006 he became a councillor for the London
Borough of Wandsworth.
19
Andrew Evans
Executive Director (Operations)
EXECUTIVE
MANAGEMENT TEAM
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.
Our day-to-day operations are managed by the Executive Management and Operational
Management teams. They seek to ensure that residents and neighbourhoods receive excellent,
regionally-tailored services in their respective areas.
Simon Potts
Executive Director (Commercial, South East)
Simon has worked in the housebuilding industry for over 25 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. He has also held senior management
roles at Hillreed Homes, St James Group and Fairclough Homes.
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Darrell Mercer
Group Chief Executive
Dean Tufts
Executive Director (Finance & Strategy)
See previous page.
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.
John Knevett
Group Chief Commercial Officer and Deputy Group Chief Executive
Anne Waterhouse
Executive Director (Financial Services)
See previous page.
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.
Kathryn Bull
Executive Director (Corporate Services)
Nicholas Yeeles
Executive Director (Commercial, London)
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.
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
GROUP
STRUCTURE
A2DOMINION
HOUSING GROUP LTD
OTHER
SUBSIDIARIES
Formed in October 2008, the A2Dominion Group is an Industrial & Provident
Society and is the non-asset holding parent organisation responsible for the
Group’s overall strategy and performance.
(An exempt charity, I&P Soc. No. 28985R, HCA Reg. L4240)
A2Dominion Enterprises Ltd
(Co. No. 02476402)
A2DOMINION
HOMES LTD
A registered provider with charitable status. With regional offices in Ealing
and Oxford, it is responsible for managing the Group’s homes in the London
boroughs, Oxfordshire, Buckinghamshire and Berkshire.
(An exempt charity, I&P Soc. No. 18313R, HCA Reg. LH0391)
A2Dominion Housing Finance Ltd
(I&P Soc. No. 29316R)
A2Dominion Housing Options Ltd
(I&P Soc. No. 29122R, HCA Reg. SL4293)
Dominion Developments (2004) Ltd
(Co. No. 05230209)
Dominion Developments (2005) Ltd
(Co. No. 05585321)
A2DOMINION
SOUTH LTD
A registered provider with charitable status. With a regional office in Staines,
it is responsible for managing the Group’s homes in Surrey, Kent, Hampshire,
East and West Sussex and Wiltshire.
(An exempt charity, I&P Soc. No. 28641R, HCA Reg. LH4149)
22
23
BUSINESS PLAN
2013 – 2016
A2Dominion Group
15th Floor Capital House
25 Chapel Street
London NW1 5WX
T 020 8825 1000
F 020 8825 1963
[email protected]
www.a2dominion.co.uk
000071/06/13 - CO
A2Dominion Housing Group Ltd (I&P Soc. No. 28985R, HCA Reg. L4240). Registered Office: Capital House, 25 Chapel Street, London NW1 5WX.