Home Group issues strong results for the year ended 31st March 2016

September 13th, 2016 in Home Group News

Home Group, the UK’s leading provider of housing and care has reported strong financial results during a year of significant political changes.

Headlines

  • Achieved surplus of £44.3m (a £4.8m increase on last year)
  • Turnover of £350.8m [increase of 3.1%)
  • Built over 600 new houses
  • Generated efficiency savings of £14m against a target of £9.9 m
  • Operating margin of 24.2% (22.7% last year)
  • Customer and client satisfaction levels have remained high at 93% and 95%

All surplus generated is reinvested directly in the business to build independence and aspiration for our customers in the form of affordable homes and support for those who need it most. 
 
The government has set out its ambition to see one million new homes built in the lifetime of this parliament and last year Home Group contributed to this by building over 600 new homes. Home Group also has further plans to build around 8000 homes over the next 5 years, with over 1100 being completed this year.  Funds generated by properties built for outright sales continue to be reinvested in the construction of new social housing stock.  
 
Other highlights in 15/16 included:
  • Partnerships/Joint Ventures
    Successfully secured eight new partnership / joint venture deals, which will deliver over 3500 homes and 1300 affordable homes. These alone will have a gross development value of £650m and will deliver profits of £70m for Home Group to reinvest in affordable activity elsewhere.
  • Estate regeneration
    Continued our commitment to investment on estate regeneration and projects of scale across the country. This included delivery of the final phases of our 800 unit estate Rayners Lane in Harrow and a joint venture with Gateshead Council and Galliford Try in Gateshead – one of the UK’s largest housing regeneration programmes outside of London. 
  • Apprenticeship programme
    Our “Inspiring Futures” programme, recruited 60 new apprentices during 2015/16 – 82% of which are customers or clients. We enjoy a highly successful progression rate for our apprentices, and 80% of those who completed last year moved into employment or continued their learning through an advanced Level 3 apprenticeship programme.
  • New Technology
    Implemented new technology including Oracle colleague self-service  and learning and development and the launch of a new digital end-to-end recruitment tool. The business also upgraded all hardware  to provide each colleague with mobile tablets.
  • Award winning team
    Won a number of national awards for outstanding service, including the National Contact Centre Awards, the Royal Society for the Prevention of Accidents Gold Award and the Landlord of the Year at Property Week’s RESI Awards 2016. 
  • Value for Money statement The year presented challenges to the social and supported housing sector including the introduction of a 1% per annum rent cut for four years. This meant changing our previous income assumptions and identifying areas of efficiency to be delivered quickly. Our strong understanding of the focus of national policy, coupled with the development of a new strategy that is underpinned by greater integration, innovation and the commitment to deliver on customers’ aspirations, has supported us in meeting and exceeding our efficiency targets, while maintaining customer and client satisfaction.

Home Group’s Chairman Bob Davies commented: “Our year has seen some great achievements - we have delivered on our promises, our service standards have continued to rise and our finances are in good health.  Of course, there is always much more that we can and must do to enhance the lives of our customers and clients. We have set demanding targets to improve the range and quality of our services in the coming year and, whilst the external environment is challenging and uncertain, we are confident that our approach will continue to deliver sustained success.”

ENDS

Click here to view the financial reports and annual reviews - 2015/16