Prosperity
Financially strong and well-governed
Prosperity
Financially strong and well-governed
Prosperity
Financially strong and well-governed
An important part of our Corporate plan priority, Prosperity, is about ensuring we’re financially strong. This is so we can continue to invest in our homes and communities, providing great places to live.
Developing our Value for Money Strategy
Getting value for money is essential for us to maximise services for you. We always aim to deliver efficient and excellent customer services, and getting value for money is an important part of this.
In March 2024, consultation with the Customer Scrutiny Panel provided valuable insights into key themes we should have in the Value for Money.
Based on these discussions, we finalised our Value for Money Strategy and action plan, and delivered its first year.
Here’s how we made sure we were spending efficiently, in line with our Value for Money Strategy, to get the most from our resources for customers:
Reduced our operating margin: We invested more in customers and homes which reduced the operating margin from 32.2% to 17.0%.
Delivered efficiencies: We continued implementing the Shaping our Future programme to find efficiencies and improve business operations.
Increased investment in properties: We increased the budget for budget for repairs and the Healthy Homes team to improve the quality of homes and future proof them.
of interest cost savings
We also achieved £85k of interest cost savings through effective treasury management by early repayment of more expensive term debt and more actively managing cash balances.
Income and operating costs
We have a strong emphasis in our plans on maintaining our financial stability and effective governance, and last year this ensured we kept our G1/V2 rating. Our strategy revolves around delivering value for money and keeping a sensible financial approach to make sure that we can support our people, our communities, and boost prosperity.
Financial recap for April 2023 to March 2024
We made a surplus of £15.2 million (compared to £17 million in 2023) for the year, which exceeded our budgeted surplus of £12.9 million. This was while facing another challenging financial year. More customers needed repairs, and we needed to invest more money into our homes and into support for customers. We also sold fewer homes in comparison to the year before. Despite not bringing in as much in income, our Board still decided to spend more on our homes and increase our support to help with the rising cost of living, resulting in this lower surplus.
Income and operating costs
Our financial position remains strong, and the value of our assets continues to grow due to the investment we make in customers’ homes. This strength will allow us to continue to generate income so that we can invest longer term in keeping the homes of our customers secure, warm, and safe.
Income
Rental income £62.4m
First tranche shared ownership sales £2.1m
Market rent lettings £4.5m
Other £0.9m
RTB & RTA sales £6.8m
Grants £0.2m
Total: £76.7m
Operating costs
Running the business £23.3m
Service costs £6.8m
Social investment £1m
Major repair £21m
General repairs £19.1
Total £71.2m