Performance

Operating and financial review

Areas of Operation

Genesis operates in 84 local authorities across London, the East of England, East Midlands and the South East. Genesis operates in 28 London local authorities and 56 local authorities outside London. Genesis is the largest provider of affordable and social rented stock in the London Boroughs of Brent, Westminster and Barnet, at 25%, 20% and 16% respectively. Genesis is the second largest provider in Camden at 19%.

Operational Performance

The Board developed its approach to analysing and monitoring our performance against internal and external benchmarks. It set challenging targets to improve year-on-year through the annual planning process. 32 Key Performance Indicators (KPIs) were monitored to support the objectives of the Corporate Strategy. At year end, nine of these measures met target with an additional seven measures finishing within 5% of target thereby achieving an Amber RAG rating.

* Red Amber Green

RAG* Status and Direction of Travel Chart

Green 9

5 16% Up 13%

Down 11 34% 28%

Amber 7 N/A 4 Static

22% 12 37% Red 16 50%

The outer ring of this chart illustrates the number and percentage of measures that achieved target using a RAG status. The inside breaks down the direction of travel of the 32 measures: how many improved, deteriorated or stayed the same. Year on year improvements were achieved on income collection, rent arrears, void loss, employee measures and customer satisfaction. The focus on the potential merger with Thames Valley Housing Association in 2016/17 meant that Genesis was not able to fully optimise capacity to deliver some targets such as moving out of the Cambridge area and timely implementation of the payment facility on the Customer app. We secured 767 plots to build new homes against a target of 1500. 450 were delayed because of significant renegotiations with vendors and 316 were subject to Network Rail timescales. Against an ambitious target of delivering 50 apprenticeship opportunities we delivered 44. Renewed focus following the collapse of the merger talks means that delivery of all these projects should occur in 2017/18.

Operating and financial review

90

80

70

60

2014/15 2015/16

64.6% 63.2% 66.2%

50

40

Customer satisfaction

Three Year Satisfaction Trend Graph

The graph above shows the year on year improvement in customer satisfaction and repairs and maintenance satisfaction over a three year period to 2016/17. Achievements: •

Satisfaction with repairs service achieved 79.9% (from 73.6% in 2015/16)

Percentage of customers satisfied with our services achieved 66.2% (from 63.2% in 2015/16) Positive end of year results for operational performance also show: •

Income collection surpassed target for the second year at 100.2% against a target of 100%.

2016/17

67.2% 73.6% 79.9%

Repairs satisfaction

Current tenant arrears improved for the third year at 4.2% (5.8% in 2014/15, 4.8% in 2015/16). Voids loss of 2.01% was better than the target of 2.07% and improved on the 2015/16 result of 2.70%. Percentage of calls received from customers resolved, did not quite meet target but improved to 72.3% (from 69.8% in 2015/16).

Tenant arrears

Total tenant arrears remain unchanged at 4.9% from prior year. However in 2016/17, we saw a reduction of 0.6% in our current arrears although there was no reduction in our total arrears. Current tenant arrears improved for the third year at 4.2% (5.8% in 2014/15, 4.8% in 2015/16). Tenant Arrears

2016/17

4.9%

2015/16

4.9%

In the year, we continued to implement proactive income management and make use of technology and data to understand and manage our income service. We have seen more of our customers become affected by Universal Credit and Welfare Benefit reform, however we have maintained our overall performance despite these external influences. Included in our strategy for 2016/17 was a plan to step up our legal action in cases with static and high arrears. We continue to make better use of data to support tactical informed decisions on addressing arrears. New ways of working have been embedded, as a result of more effective management. This has led to a rigorous approach to income collection. There has also been a concerted effort to address low level arrears by ensuring that payment in advance is promoted as well as payments at sign-up, and arrears are not allowed to escalate exponentially without the account being progressed internally. In 2017/18 we expect to see an overall reduction in our arrears.