YORKSHIRE HOUSING INVESTOR PRESENTATION AUGUST 2019 Nick Atkin Chief Executive Guy Millichamp Director of Finance
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PRESENTING TEAM Nick Atkin - Chief Executive Nick has a track record of leading organisations through transformational change, driving performance improvement, with a focus on maximising the untapped potential from businesses and people. Nick has previously introduced a fully flexible/ remote working approach. He also led the move to 90% of customer led transactions to be delivered through online self-service routes. He is regularly included in the top 25 most influential people in housing and is a keen advocate of innovation. He uses digital as an enabler to drive fundamental change in how businesses operate. He is also a disruptor in the ‘future of work’ debate and has been paperless for 17 years. Guy Millichamp – Finance Director Guy joined the group in 2001 and has held a number of finance roles before becoming director of finance in February 2015. As well as being Yorkshire Housing’s chief financial officer, Guy also leads on business planning, governance, risk and assurance. A chartered accountant with a background in the not for profit sector including charities, education and housing, Guy is currently a board member at Rochdale Boroughwide Housing. He lives in Leeds with his wife and three children. 3
CREDIT HIGHLIGHTS A successful, well-run regionally focussed housing association With broad-reaching portfolio across 20 local authorities throughout Yorkshire Providing over 16,500 homes across a range of tenures Supporting over a thousand elderly or vulnerable tenants Well funded, simple business model with £130m liquidity (£50m cash, £80m secured facilities) Experienced board and management with appropriate skills to oversee current strategy Focus on financial health as development programme accelerates Moody’s A3 credit rating and G1/V1 ratings from the RSH Trusted partner of MHCLG and HE – one of only 23 strategic partners nationally On track to deliver current programme of 3000+ homes by 2021, and another 3,000 by 2026 4
WHO WE ARE
STRONG REGIONAL PRESENCE • Yorkshire’s largest developing Housing association. • Founded in 1968, now headquartered in Leeds, through merger with other Yorkshire HAs, and more recent growth through development of new homes • Founder member of Homes for the North • Multi tenure portfolio with 85% on social or affordable rents • 2/3rds less than 50 years old • 2/3rds houses and bungalows • No high rise tower blocks • Mix of family accommodation & supported housing (older persons & independent living) • Strong focus on sustainable communities 6
DELIVERING MORE • Serving a widely spread urban and rural community across Yorkshire including * older people * tenants with support needs • Long term strategy to deliver more homes • While maintaining associated social added value • And cutting costs to improve resilience Current Strategic Objectives (under review): • Growth • Independence • Profit • Transformation 7
FUTURE DIRECTION (WORK IN PROGRESS) 8
SOUND AND STABLE FINANCIAL BASE • Growing the business and delivering high Key data 2019 1 2015 2018 social impact has required YH to maintain a sound financial base Units 16.1k 16.7k 17.0k • Prudent management have enabled us to Regulatory G2/V1 G1 / V1 G1 / V1 secure substantial government grant Judgment Trusted partner of MHCLG and Homes Turnover (£m) 92 101 113 England, as well as other HAs – one of only Social Housing 23 strategic partners with HE 80 87 85 Lettings T/O £m Regional agent for Help to Buy Overall Operating Limit of 15% market sale and 25% shared 27% 32% 31% Margin ownership SH Core Margin 27% 32% 29% Funding Programme Grant Gearing 40% 47% 45% AHP (2015-18) £17m EBITDA MRI 1.74 1.56 1.78 SOAHP (2016-21) £25m Interest cover As published in, or based on, unaudited trading update 29 th July 2019 1) LTSP wave 2 (2021-25) £62m 9
DELIVERING SOCIAL IMPACT Supporting sustainable communities is at the core of YHG’s strategy. This involves • Meeting demographic needs - more homes for the elderly and those with special needs • Two extra care schemes (more planned) • Providing support for tenants to improve their lives • Support people into a position of financial independence • Help customers into employment and training • Offer more support to those who need it • Focus on our neighbourhoods. We embed our social purpose in our KPIs Measure by 2020 2019 performance Status People into employment, better jobs, training, 1,000 1,020 (Jun 19) Exceeding target volunteering Vulnerable people helped to live independently 15,000 17,231 Exceeding target pa 10
MEETING THE CHALLENGE
STRATEGIC OBJECTIVES 1. Growth 2. Independence – more important than ever to support our customers 4. Transformation 3. Profit – financial performance strong and on track 12
BUSINESS OPERATIONS Litton Road, Keighley 13
STRONG REGIONAL PRESENCE 14
BALANCED PROPERTY PORTFOLIO Bedrooms Build 3% 2% 1% 7% Pre 1919 Bedspaces 4% 1919-1944 8% Bedsits 27% 16% 28% 1945-1964 14% 1bed 1965-1974 2bed 1975-1984 5% 1985-1994 3bed 1995-2004 13% 4bed 2005-2014 5bed+ 15% 2015+ 39% 18% Type Purpose 9%1% 11% 2% 3% General needs Housing for older people 2% Flat 3% Supported housing 55% House Market rent Bungalow Shared ownership 34% Intermediate Rent Other 80% 15
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