Business Plan 2013 to 2017

The Business Plan 2013 to 2017

strong sustainable growth to make a dierence to people’s lives, homes and communities

Wales & West Housing

Strong, sustainable growth to make a dierence to people’s lives, homes and communities

Wales & West Housing | The Business Plan 2013 to 2017 | 1

Introduction With our residents we build homes and create communities. More than just bricks and mortar, a home is security, a sense of belonging that enables us to get on with our lives, knowing that it is there to go back to at the end of the day. Having a decent home is fundamental to our wellbeing.

For almost 50 years we have been helping people to make a home. From our first scheme in Cardiff to our most recent in Wrexham, from the North to the South thousands of people find peace of mind by making one of our properties their home.

We are a business with a social purpose. A purpose based on housing. This means we build, rent and sell homes. We do repairs and major works, manage tenancies, support and protect people, regenerate and invest in communities.

We make a difference with every new home we build and an even bigger difference in how we use each pound we spend ­ buying locally, employing locally, investing locally.

With housing our purpose, our business is people. As a Group we employ over 380 people providing services to more than 17,000 residents who come from all walks of

Kathy Smart with residents at East Tyndall Street Fun Day, Cardiff.

life including some of the most vulnerable in society.

People come first in our world and it shows ­ 86% of our residents are very satisfied with us as their landlord. Staff feedback has seen us rated as the 8th best place to work in the UK in the Sunday Times Best Companies Not­For­Profit list in 2012.

We have been able to achieve this because of how we run our organisation ­ a focus on customers, providing good value and doing what matters to them, not lots of procedures, targets or budgets.

Opposite: Cameron, 12, Lenesha, 11, and Cerys, 12, from Splott, Cardiff.

Young residents who helped us with our rebranding.

While big is not always beautiful it does bring financial strength, the capacity to ride out the current economic storm and the wherewithal for innovation, creativity and fresh ideas. We have re­branded to reflect our purpose and direction and know that we have made, and will continue to make, a difference. We have the vision, ambition and strength to achieve even more. This plan shows how this will become reality.

Kathy Smart Chair of the Board Anne Hinchey Chief Executive

2 | The Business Plan 2013 to 2017 | Wales & West Housing

Operating environment The housing sector is facing perhaps its biggest challenge. As our population grows and the nature of households change, so does the demand for more homes. In contrast, house building is at its lowest for decades as is mortgage lending.

The economic environment that has prevailed for five years is likely to continue for some time and has potentially changed the housing market for the foreseeable future. Fewer people will own their home, a small minority will be able to access social housing and the only option for a growing number will be to rent at market levels, most often through the private sector which remains substantially unregulated.

The amount of capital grant the Welsh Government intends to spend in supporting the provision of social housing has been reduced by 60% at the same time as access to private finance is more difficult.

Social rents remain restricted and without greater flexibility it is inevitable that further reductions in the number of social rented homes built will occur. More homes will come through additional borrowings by those

associations with the capacity to do so and they will be at higher rents than the sector has traditionally charged.

The confidence of lenders is vital to us if we are to access the funds necessary to build more homes with little or no grant. The changes to welfare benefits, in particular the payment of universal credit, could undermine that confidence.

For us we see mitigating the possible impact as a key priority.

The recession has hit residents and communities hard and the social changes such as housing benefit reform will have considerable impact.

Tackling under­occupation is a laudable aim for the UK Government but without suitable alternative housing, people on low incomes will face greater hardship. Quite rightly there is greater expectation on us to demonstrate we are making the best use of every pound and doing all we can to help our residents to do the same.

(L­R) Tony Wilson , Finance Director, Shayne Hembrow, Deputy Chief Executive / Commercial Director, Anne Hinchey, Chief Executive and Steve Porter, Operations Director.

Wales & West Housing | The Business Plan 2013 to 2017 | 3

Lily Whitley, 77, resident of Nant y Mor extra care scheme, taking part in its recent art exhibition.

4 | The Business Plan 2013 to 2017 | Wales & West Housing

Wales & West Housing | The Business Plan 2013 to 2017 | 5

Today and tomorrow Good quality housing is essential to our society and having a home that is warm, safe and secure is fundamental to the wellbeing of all of us. We understand that a home is much more than just a place to live which is why we invest time and effort to support our residents to live the best lives they can.

Today we are one of the largest providers of affordable housing in Wales.

We have built 301 new homes in Wales in the last three years, invested more than £30 million improving our homes, keeping more than 380 people in work locally and made it easier for 33 people to find employment.

On average we do 470 repairs and speak to 250 people helping them to get a home, 290 people about how to stay out of debt and 3,000 people to support them to stay well, live independently and out of care or nursing homes each week. We also visit over 1,000 people in their homes each week because we know that’s where we make a difference.

Richard Griffiths of Cambria Maintenance Services.

Opposite: Emily Penpraze and Robert Orgrodnick, young residents of Plough Court, Brecon

6 | The Business Plan 2013 to 2017 | Wales & West Housing

Every one of us can always do a little more. We want to do a lot more and must grow if we are to achieve this. We need to continue to make a difference in lots of ways and can do this by expanding and diversifying our business.

Sometimes the difference will be major developments or refurbishment programmes but more often it will be the small things that we do that will make the biggest difference ­ listening, guiding, supporting, responding and solving the small obstacles that get in the way.

Our strength is that we are both local and national.

Effective and knowledgeable local service delivery combined with strong central skills and financial capacity allows us to work towards a better tomorrow for thousands of people. Our plans to grow and make a difference are summarised under six themes. The pages that follow explain our plans and some of the successes we have had so far.

Helen and Kevin Price viewing a property in Newtown.

Enjoying a ‘Litter Pick’ in Flint. Chelsea, 10, Rebecca, 12, Indya, 10, and Lily, 5.

Wales & West Housing | The Business Plan 2013 to 2017 | 7

Grant Davies, a student on placement with WWH, with Commercial Manager Andrew Richards and Asset Management Officer Gareth Radcliffe, on site at our £850,000 eco­refurb programme in Buckley, Flintshire.

“As our residents deal with the impact of the recession we need to work harder to make sure our properties and the services we provide support them to make the most of the opportunities available. We want our properties to be safe, secure, warm and efficient. We want residents to maximise their income, be connected, manage their finances and contribute where they can in their community. We want residents to live as independently as they are able, healthy and well and we are committed to providing the support necessary to achieve that. We want to create communities that work ­ well maintained, safe and vibrant places where people go to work and children go to school.”

Shayne Hembrow, Deputy Chief Executive / Commercial Director.

8 | The Business Plan 2013 to 2017 | Wales & West Housing

Provide homes for people in housing need We will build and acquire more housing to help more people to create a home of their choice. We have increased the number of homes we provide considerably in recent years and will continue to do so. In the last five years we have added 491 homes and in the next five we will invest £101 million adding more than 850, creating fantastic communities of which both we and our residents can be proud.

More people need help to find a home than ever before. Whereas we have previously concentrated on social housing to rent, we will now increase the number of homes we build for intermediate rents and for sale. We intend to create two new companies, wholly owned by Wales & West Housing Group, to help us build the most homes we can with the resources we have available. The housing crisis we all find ourselves in is because not enough homes are being built of any type. We will meet this challenge head on and

continue to look for new ways to increase the supply of homes.

We want to provide good quality and sustainable homes in those areas where we can best support our residents and the communities in which they live. Homes will be built to a new ‘Wales & West standard’ which people will come to know are of a good size, well designed and affordable to heat. Our standard will be synonymous with quality and our homes will be those of choice.

Huw Lewis, Minister for Housing, Regeneration and Heritage, enjoys a cup of tea with Tina Ames, who had just moved into our new scheme Plough Court, in the heart of Brecon.

Wales & West Housing | The Business Plan 2013 to 2017 | 9

More We will build and acquire more housing to help more people create a home of their choice

10 | The Business Plan 2013 to 2017 | Wales & West Housing

Better The creation of our group structure has allowed us to grow our business and improve value for money for our residents

Wales & West Housing | The Business Plan 2013 to 2017 | 11

Maximising our impact The creation of our group structure has allowed us to grow our business and improve value for money for our residents. With ever more scrutiny on the use of public money, we need to demonstrate we are making every pound count and our group structure is enabling us to do that.

We established our subsidiary company Cambria Maintenance Services in 2011. Covering South and Mid Wales, Cambria’s first full year of trading has been really successful ­ not only has it been profitable, it has saved Wales & West Housing £200,000 on its repair bill.

We will expand the operation to cover North Wales and take over the majority of the day to day maintenance for our properties.

Over the next five years Cambria will also undertake around 4,000 kitchen and bathroom renewals. More of our residents will benefit from the great service Cambria has become known for ­ local people who know our residents and our properties who get the job done, first time almost every time!

Connect24 is our new brand identity for a well established

and trusted service that Wales & West Housing has provided for more than a decade (see page 16 for more information). The number of people supported

by Connect24 has grown to over 19,000 either for telecare, emergency alarm or out of hour repairs. We are ambitious for Connect24 and aim to grow the service further, increasing both the number of people supported and companies assisted in the delivery of their services.

The better we can be the more we can do, which is why staying efficient is a priority for us. We will have more of an impact if our staff, systems and technology work really well and adapt to our residents’ changing needs.

We want to take a hard look at our processes for service charges, rents, payments and other internal systems to ensure they are as efficient as we can make them.

Opposite: Gareth Williams, one of Cambria Maintenance Services’s employees, who will benefit from its expansion.

12 | The Business Plan 2013 to 2017 | Wales & West Housing

Greener We will reduce our impact on the environment and that of our residents

Wales & West Housing | The Business Plan 2013 to 2017 | 13

Minimising the impact on the environment by WWH and our residents We will reduce our impact on the environment and that of our residents. Whatever your views on the reasons for climate change we can all use less, reuse more and recycle what we would otherwise have thrown away.

On site with Flintshire County Council looking at plans for our new extra care scheme, Llys Jasmine.

No one should be cold and unable to afford to heat their home. We will improve the energy efficiency of our properties, beyond that required by the Welsh Government, so that our residents save money, use less and are less likely to be in fuel poverty. We have invested £6 million in the last five years to ease fuel poverty in our properties

and will continue to invest in improvement measures.

We will continue to reduce our carbon footprint, adding to the measures taken to date. Green electricity supplies, solar panels and air to air heating systems have all made a difference and the 750,000 business miles our staff clock up each year is one of our next challenges.

Opposite: Solar panels on the roof of our retirement scheme Ty Pontrhun in Merthyr Tydfil.

14 | The Business Plan 2013 to 2017 | Wales & West Housing

Making the best use of our assets We will help our residents to live in homes best suited for their needs ­ right location, right size and right facilities. Around a fifth of our residents live in homes either too small or too big for their needs and we will help them to find housing that is better suited. As a result of the welfare reform changes some residents will face hardship and we will work with these people to create bespoke plans to help them cope.

As residents’ needs change so must some of our properties. We will make home adaptations more accessible and complete them quickly enabling disabled residents to live independently for longer.

The same applies to a small

number of schemes where it is becoming clear that they could be improved to better serve the needs of their residents. We will explore opportunities to improve these schemes as part of larger regeneration initiatives.

Sharon Touse enjoys a good book with her 4­year­old niece Sophia in their new home at Brewery Court, Merthyr Tydfil.

Opposite: Lee Cribb beams outside his new state­of­the­art supported bungalow we built at Cilgant yr Hen Ysgol, Flintshire.

Wales & West Housing | The Business Plan 2013 to 2017 | 15

Wiser We will help our residents to live in homes best suited for their needs 足 right location, right size and right facilities

16 | The Business Plan 2013 to 2017 | Wales & West Housing

Smarter Technology liberates, empowers and enables. This applies equally to our sta as our residents

Wales & West Housing | The Business Plan 2013 to 2017 | 17

Making best use of technology Technology liberates, empowers and enables.

This applies equally to our staff as our residents.

More and more services, including access to benefits, are becoming available only via the internet and yet the majority of our residents are not connected. We want to change this and will look to install WiFi enabled broadband, where cost effective, to enable residents to get online, learning from our successful pilot in Merthyr Tydfil. We will continue to work with Communities 2.0 to ensure our residents have the skills they need to make the most of all new technology.

Our staff are locally based and sometimes staying in touch with colleagues and residents is a challenge. We will embrace the opportunities presented by new networks, equipment and social media to make our staff more effective, productive and engaged with each other and their residents.

With increased pressure on social care and health staff, it is clear that third sector organisations such as Wales & West Housing can play a valuable role in helping residents stay well and enjoy independent living in their own homes. We will explore how we can make more use of Connect24’s services in terms of telecare and telehealth to support both residents and local authority colleagues.

Mrs Nancy Pilot of Bridgend enjoys peace of mind with our Connect24 personal alarm service. She’s seen here wearing the wrist button.

18 | The Business Plan 2013 to 2017 | Wales & West Housing

Making a difference in communities Our lives are better when we live in safe and vibrant communities where people get along well. We know the best way to achieve this is working together, hand in hand with our residents and partners, making a difference whether it is through jobs, play areas or acquiring new skills. We will continue to create new employment, training places and apprenticeships, making use of Welsh and UK Government programmes as much as we can.

Whatever your age, we all need a helping hand to support us at difficult times.

This is true of more and more of our residents and we will explore how we can work more closely with health and social care services to better support our residents and other older people in our communities to stay well and independent.

Our residents tell us they like the quality of the services we deliver. We believe a contributing factor is our continuing redesign of our services based on what residents tell us matters most to them.

Our staff are empowered to tailor service delivery to meet residents’ needs and this shift in the balance of control from manager to staff has proved itself effective in providing consistently high quality services. Changes in culture are a journey and we have made great progress.

We value openness, honesty and transparency.

We are open about what we do and how we run the business. We want our residents, partners and other stakeholders to be able to hold us to account and will look at ways we can improve this over the coming 12 months.

Residents of Sydney Hall Court, Connah’s Quay, with their pets. The scheme has been recognised by the Cinnamon Trust as one of the most pet­friendly retirement schemes in the UK.

Wales & West Housing | The Business Plan 2013 to 2017 | 19

Together Our residents tell us they like the quality of the services we deliver.

20 | The Business Plan 2013 to 2017 | Wales & West Housing

Where we operate General Needs

244

Home Ownership

Re rement

Re rement

5

General Needs

58

204

General Needs

Home Ownership

24

41

598

Extra Care

59

Re rement

137

Home Ownership

29 Flintshire Supported

Conwy

16

Denbighshire Wrexham

General Needs

678 Supported

34 Re rement

88

Re rement Supported

159

36 Total Stock

General Needs

609

Home Ownership

9,459

Powys

52 Re rement Home Ownership

150

Re rement

51

245

227

Home Ownership

94

Supported

1

General Needs

General Needs

83

dďŹ l r Ty rthy Me

64

Rhondda Cynon Taf Bridgend

General Needs

65

General Needs

Swansea

Home Ownership

Re rement

107 Home Ownership

Caerphilly

327

Cardi

44

932

Supported

Vale of Glamorgan

General Needs

20

Supported

29 Re rement

Home Ownership

Home Ownership

38

199

305 Home Ownership

111

417

General Needs

Re rement

148

Re rement

General Needs

683 2,048

Wales & West Housing | The Business Plan 2013 to 2017 | 21

Number of homes in development

by LA area Denbighshire

9 Conwy

12

Flintshire

121 Wrexham

127

Total

393 Powys

24 Merthyr Tydfil

15

Cardiff Bridgend

26

39 Vale of Glamorgan

20 These figures represent developments which are on site now and programmed to commence in the next 12 months. However, in total, we anticipate building and aquiring an additional 450 units in the next five years, which will take our total new build over that period of time to 850 units.

22 | The Business Plan 2013 to 2017 | Wales & West Housing

We are confident we can deliver all we sustainable growth is achievable becau people and resources. This section of o How we run our organisation We are a social enterprise and proud of the contribution we make in Wales. As a not­for­profit organisation we reinvest all surpluses back into our business to improve and enhance the quality of services and to provide more homes. Careful financial management and a keen eye for value means we are efficient with strong financial capacity to do more.

Our strength and success comes from our staff.

Achieving 8th place in the UK in the Sunday Times Best Companies Not­For­Profit 2012 list was a resounding endorsement of the way in which we run the organisation. We have a strong sense of integrity and a commitment to doing the ‘right thing’ – our values really mean something to us and our behaviour towards each other and our residents reflects this.

If our values determine how we provide services then our operating principles ­ developed following our first ‘systems thinking’ intervention ­ guide what we do. These principles place the customer at the heart of what we do ­ listening, understanding

Responsible

Efficient

Our values

Open

Wales & West Housing | The Business Plan 2013 to 2017 | 23

set out to do. Our vision of strong, se we have the right attitude, culture, ur plan says more about this. what matters and designing services to deliver what they have told us is a priority and represents value to them. We have learnt that the best service delivery comes when staff and residents decide together the standard of service and outcomes they want. Devolving power and decision making to the frontline is our objective. It takes time and we have made excellent progress which is reflected in our high levels of resident satisfaction.

Fair

Supportive

Gill Sanger, Financial Manager (Accounting), helping to run a craft session at the East Tyndall Street Fun Day in Cardiff.

Increasingly the challenges we face and the expectations upon us change rapidly. We have responded by overhauling our corporate and business planning process to one that is more dynamic and responsive. Organisations need to know in real time what they are doing well, less well, and the expectations of their customers. Our revised process is underpinned by good quality evidence of the outcomes we achieve over time and where we need to do better.

All of this has been achieved without targets, objectives

or strategies which sap resources, add to inefficiency and distract our organisation from delivering value to its customers.

Rather, we use quarterly measures of both operational and financial outcomes that matter to our customers. We use these to understand past trends and to predict and influence future projections.

Through this process our history and forecasts for the next five years and beyond are all connected and transparent and can be flexed on a continuous basis as circumstances change.

24 | The Business Plan 2013 to 2017 | Wales & West Housing

Board and Executive information Board of Directors Leadership is critical for any company to achieve its aims and at WWH we have an excellent team in place with the skills and experience to lead the organisation in the coming years. The strength of our Board comes from its diversity – twelve people with collectively hundreds of years’ experience running businesses, providing both public and private services, raising families, supporting charities and social enterprises and acting as passionate advocates of the importance of housing in our communities.

Drawn from and elected by residents and shareholders in two distinct processes, our Board successfully use their skills and knowledge to provide responsible and effective governance of the Group.

Kathy Smart Chair of Board Kathy is a master’s graduate in Entrepreneurship and Business and has a sound understanding of the property development market. Kathy is well known among the business community in South Wales and is a strong advocate for the housing sector. She has been a member of our Board since 2004.

Alex Ashton Vice Chair of Board Alex has many years’ experience working with low income families and individuals both from his time with a local authority housing benefits section and from his work as the pastor of a church in Bridgend. MBA qualified and with a sound understanding of finance and social enterprise, Alex has been an active member of our Board since 2005 undertaking many roles.

Bernard Jarvis Bernard spent more than 20 years as a miner.

He has been an enthusiastic community activitist supporting his local residents association. Bernard is a resident Board member elected by residents in 2010.

David Davies Since joining the Board, David has taken a strong interest in information technology and support services including staffing. David, a resident Board member elected in 2006, is active in the sector and has represented tenants on the boards of various organisations including the Welsh Tenants Federation, the Chartered Institute of Housing and TPAS. Ivor Gittens Now retired from the Royal Air Force and with a background in electrical engineering, Ivor has been on our Board since 1994 and is the longest standing member. Ivor is involved with a range of organisations at Board level including Parc Prison Bridgend, is Chair of Governors at Mount Stuart Primary School, Butetown and a Governor at Ninian Park Primary school in Grangetown.

Wales & West Housing | The Business Plan 2013 to 2017 | 25

John Clowes

Neal O’Leary

Rachel Fleri

John spent many years working in the manufacturing sector and was managing director of a sizeable company based in South Wales. John has considerable experience in business management, finance and HR and has been a Board member since 2004. John is currently the Chair of the Probity and Audit Committee and a member of the Board of Cambria Maintenance Services.

Neal is a chartered surveyor with an extensive background in property maintenance and management. Neal is Head of Conservation for Cadw prior to which he worked in social housing for 16 years. Neal joined our Board in 2009 and is also currently the Chair of Cambria Maintenance Services.

Rachel graduated as a marine biologist and worked as a secondary school teacher for several years before leaving to work in pharmaceutical sales.

Since 2004 Rachel has run her own security company in Cardiff employing more than 100 people. Rachel joined the Board in 2012 after several years as an independent member of the Probity and Audit Committee.

John Williams John worked as a manager in the manufacturing sector for most of his career and since retiring has been actively involved in his community in various roles including chair of the Offa Community Council, Hightown Communities First and the Barracksfield Residents’ Association, Wrexham. John was first elected to the Board by fellow residents in 2004 and again in 2009. John is also a member of the Board of Cambria Maintenance Services.

Richard Cornish For over 30 years Richard worked as an engineer in the coal industry before running his own business up to retirement.

Richard is a deacon in his local church and active within several carer and disability groups in his local community.

Richard was elected as a resident Board member in 2012.

Sharon Lee Sharon is a housing professional with 14 years’ experience in both England and Wales as a senior manager.

Sharon’s experience is wide ranging from anti social behaviour management, to call centres and public relations.

Sharon joined the Board in 2011.

Winnie Davies Winnie is a passionate advocate for community and resident engagement. She worked for 7 years for the Audit Commission as a Tenant Inspector and has been an active member of the Vale Housing Federation for many years. Winnie also sits on several Boards and panels including Cardiff and Vale Crossroads Care and the Senate for Older People organised by Age Cymru.

Winnie has been on the Board since 2006.

26 | The Business Plan 2013 to 2017 | Wales & West Housing

Executive Directors As with our Board, the strength of our Executive team comes from its diversity. The different skills and experience have brought innovation, ideas and energy to both the direction of the Group and how it is managed.

Anne Hinchey Chief Executive A graduate in politics and education as well as holding a professional qualification in housing, Anne started her career as a rent collector in 1985 in Cardiff.

With extensive experience in the local authority, voluntary and housing association sectors Anne joined Wales & West Housing 1999 and became Chief Executive in 2006. Anne sits on several Boards including Asset Skills Cymru (of which she is Chair), Community Housing Cymru and Cambria Maintenance Services.

Shayne Hembrow Deputy Chief Executive / Commercial Director Shayne has more than 20 years’ experience in housing and regeneration working in both England and Wales. After seven years in the private sector, Shayne came in to social housing working for Gloucester City Council and then for the Audit Commission managing their housing work in the South West of England. At WWH Shayne is responsible for support services, development

and performance improvement and sits on the Boards of Community Housing Cymru, Shelter Cymru and Cambria Maintenance Services.

Tony Wilson Finance Director Prior to joining WWH in 2002, Tony spent 18 years in senior management positions mainly in FTSE listed blue chip companies, the last of which was Centrica. An economics graduate and chartered accountant with multi­sector experience, Tony has also worked in banking and venture capital including a spell with the Welsh Development Agency. At WWH Tony is responsible for finance, information systems, health and safety, audit and probity.

Tony also sits on the SORP Working Party which determines best practice for the housing association movement and is also a board member for Cambria Maintenance Services.

Steve Porter Operations Director A graduate in surveying with professional qualification in construction, Steve has over 20 years’ experience working in the housing sector in a variety of client and contracting roles.

After almost five years as Wales & West Housing’s Head of Property Services Steve was appointed Operations Director in 2012. He is passionate about excellent quality service provision centred on the services residents want to receive and was instrumental in establishing WWH’s subsidiary Cambria Maintenance Services. As Operations Director Steve is responsible for Housing, Property Services and Cambria Maintenance Services, whilst outside WWH he sits on the Board of Tai Calon Community Housing.

Wales & West Housing | The Business Plan 2013 to 2017 | 27

Achievements and Accreditations We have been recognised by a number of independent organisations for the way in which we work and the services we deliver. Here are some examples.

8th place on The Sunday Times Best Companies Not­For­Profit List 2012 and 3 Star ‘Outstanding’ rating by Best Companies 2012 We are the top rated not­for­profit organisation in Wales, in the top 10 for the whole of the UK, and the only Welsh housing association to be awarded the coveted 3 stars.

Top 30 Employers for Working Families – 2012 We are rated as being one of the top 30 companies in the UK and are the only Welsh housing association to win this award, and only one of two HAs in the whole of the UK to make the top 30. Others in the top 30 include blue chip companies like Deutsche Bank, Dell Corporation, McDonalds and Sainsburys.

Investors In People We achieved the highest rating at the assessment undertaken in Spring 2012.

Stonewall Cymru – ‘Diversity Champion’ Since 2008 we have been recognised as being committed to equality and diversity on the grounds of sexual orientation.

Age Positive – Employer Champion This award recognises that we are committed to equality on the basis of age in all aspects of our business.

Green Dragon Award Since 2010 we have achieved the environmental Green Dragon Level 2 Award for both Cardiff and Flint.

Telecare Services Association Our Emergency Alarm service is accredited by the Telecare Services Association (TSA) which, via call monitoring, ensures that our staff provide the highest quality emergency alarm service to our residents and corporate clients.

Association of Retirement Housing Managers We are accredited by the Association of Retirement Housing Managers, meaning we provide a high quality service to our older residents.

Staff Awards Our staff are also regularly recognised by the housing sector and other awarding bodies for their great work. These include: • National Housing Heroes Awards – shortlisted 2011 and joint winner 2010 • We won the Community Champion Award 2011 from Partnerships and Communities Together (PACT) • In 2011 we were shortlisted for one Chartered Institute of Housing UK Housing Award as well as three CIH Welsh Housing Awards.

• Also in 2011 we won Cymorth Cymru’s Promoting Independence 2011 Good Commissioning Award.

• We were shortlisted for 2012 CIH UK Housing Award and and have won several TPAS (Tenant Participation Advisory Service Cymru) awards.

28 | The Business Plan 2013 to 2017 | Wales & West Housing

Financial position The economic environment in which we find ourselves today means we need to be efficient and invest wisely if we are to achieve our ambition of growth and to make a difference. Our financial performance and capacity for the future is strong and we expect to continue to make positive surpluses each year. We expect to achieve year on year increases in operating surpluses through effective operation of the business even after absorbing the bad debts we expect to incur from the changes to welfare benefits, namely the introduction of the universal credit and the ‘bedroom tax’.

Our strong position means we are comfortably able to maintain our homes, invest £36 million over five years improving them further and invest in our communities with initiatives such as WiFi. All of this will be paid for from our income and by careful management of expenditure, leaving £20 million of surplus cash available to invest in growth or to repay existing loans.

We have the financial capability to invest more than £100 million in the next five years, to build and acquiring more homes. Only a fifth of this investment is expected to be funded by social housing grant from the Welsh Government, with £70 million coming from additional borrowings and the remainder being internally generated surplus cash. Of the more than 850 badly needed homes we will provide, of which

around 620 will be let at social rents and the remainder at intermediate rents linked to the local housing allowance. A further 91 homes will be built for market sale. The profit these generate will be reinvested in providing additional homes at affordable rents.

The generation of surpluses enables us to build up our reserves, which means our gearing levels rise more slowly even with borrowings increasing to £160 million. We comfortably meet lender requirements for interest cover and stay within the lowest gearing covenant constraint of 50% imposed by two of our lenders.

We manage down the risks facing our business so that their impact is minimal. The two key financial challenges facing our sector in the coming years relate to welfare reform and

difficulties in the banking sector. The welfare reform changes will lead to a higher propensity for rent arrears.

In preparation for this we are redesigning our rent collection processes, prioritising residents for rehousing who are under­occupying their homes, and are stepping up our advice and support services. Our financial plan nevertheless prudently anticipates a higher level of working capital requirement. Difficulties in the banking sector are limiting the availability of finance.

However our strong financial position and prospects mean we are well placed to access the substantial funds we will require for our growth aspirations and we are working with a range of providers to ensure we have adequate facilities at all times, and at acceptable cost.

Wales & West Housing | The Business Plan 2013 to 2017 | 29

FINANCIAL SUMMARY 2013 Ͳ 2017 INCOME AND EXPENDITURE ACCOUNT for years ending 31 December

Net rent/service charge Operating costs Operating surplus Interest payable Net surplus BALANCE SHEET as at 31 December

Gross property cost Housing Grant Depreciation Net cost of property Net Borrowings Other net assets Net assets & reserves Gearing Ratio CASHFLOWS for years ending 31 December

Net cash flow from operations Net interest paid Replacement capital expenditure Free cash inflow/(outflow) Development expenditure SHG Net cash outflow before financing Loan principal drawdown Ͳ existing facility Ͳ additional facility requirement Loan principal repayments Net increase/decrease in cash ASSUMPTIONS for years ending 31 December

Inflation Rent Salaries Maintenance costs RPI Funding New borrowings rate Grant rate

2013 Plan £m

2014 Plan £m

2015 Plan £m

2016 Plan £m

2017 Plan £m

2013 Ͳ 2017 Total £m

39.5 (28.1) 11.4 (5.1) 6.3

42.7 (31.2) 11.5 (6.1) 5.4

44.7 (32.6) 12.1 (7.8) 4.3

47.8 (34.4) 13.4 (9.0) 4.4

50.4 (35.2) 15.2 (10.5) 4.7

225.1 (161.5) 63.6 (38.5) 25.1

2013 Plan £m

2014 Plan £m

2015 Plan £m

2016 Plan £m

2017 Plan £m

460.0 (257.0) (43.5) 159.5 (117.7) 2.6 44.4 39%

487.0 (262.5) (48.4) 176.1 (129.5) 3.1 49.7 41%

512.9 (265.0) (53.8) 194.1 (143.6) 3.5 54.0 45%

535.8 (268.4) (59.5) 207.9 (152.8) 3.4 58.5 47%

557.6 (272.0) (65.7) 219.9 (159.3) 2.6 63.2 48%

2013 Plan £m

2014 Plan £m

2015 Plan £m

2016 Plan £m

2017 Plan £m

2013 Ͳ 2017 Total £m

15.9 (5.1) (9.3) 1.5 (25.4) 4.2 (19.7) 9.5 12.2 (2.2) (0.2)

16.8 (6.1) (6.2) 4.5 (21.7) 5.5 (11.7) 0.0 13.9 (2.2) 0.0

18.1 (7.8) (8.0) 2.3 (18.9) 2.5 (14.1) 0.0 16.2 (2.1) 0.0

20.2 (9.0) (6.3) 4.9 (17.6) 3.4 (9.3) 0.0 11.1 (1.8) 0.0

23.3 (10.5) (5.7) 7.1 (17.2) 3.6 (6.5) 0.0 5.5 (1.4) (2.4)

94.3 (38.5) (35.5) 20.3 (100.8) 19.2 (61.3) 9.5 58.9 (9.7) (2.6)

2013 Plan

2014 Plan

2015 Plan

2016 Plan

2017 Plan

4.0% 3.8% 3.5% 3.0%

3.5% 3.5% 3.3% 2.5%

3.5% 3.5% 3.5% 2.5%

4.5% 3.5% 4.8% 3.5%

4.0% 3.5% 4.0% 3.0%

4.2% 58.0%

4.9% 58.0%

5.8% 58.0%

6.2% 58.0%

7.2% 58.0%

Wales & West Housing 3 Alexandra Gate, Ffordd Pengam, Tremorfa, Cardi CF24 2UD. and Unit 2, Acorn Business Park, Aber Road, Flint CH6 5YN. Telephone on 0800 052 2526 Minicom: 0800 052 5205 Email: contactus@wwha.co.uk Website: www.wwha.co.uk @wwha wwhahomesforwales

Published October 2012