Annual Report & Value for Money
Statement 2015/16

The annual report gives us the opportunity to reflect on our performance over the last year, recognise our achievements and to tell you about our plans for delivering excellent services into the future.
This is a condensed version of the full LMH Annual Report document.


 
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About the Liverpool Mutual Homes Group

Liverpool Mutual Homes (LMH) is a housing association, established in 2008, that owns 15,183 homes in Liverpool. LMH is committed to building, renovating and maintaining homes to the highest of standards across the Liverpool City Region.

Housing Maintenance Solutions (HMS) is a building, repairs and maintenance provider. HMS’ profits are gifted back to LMH to enable more homes to be built for affordable rent and initiatives that support more sustainable communities where people want to live and work.

LMH Developments is a development company that builds and refurbishes high quality homes for affordable rent and shared ownership on behalf of the LMH Group.

A message from Steve Coffey - LMH Chief Executive

The LMH Group


Number of Houses

15,183 Homes

Number of staff

600 Employees

Turnover

£72.7m Turnover

New builds

£28.6m HMS Turnover

Gift Aid

£2.4m HMS Gift Aid to LMH

Value of stock

£327.6m Value of Stock


Our Vision

The Group’s vision is to have ‘Pride in Our Homes’ and be ‘Proud of Our Neighbourhoods’ and HMS’ vision is ‘To be a Leading Maintenance and Construction Services Provider in the North West’. LMH Group’s Corporate Plan supports these visions by setting out the organisation’s goals and aspirations over a five year period from 2015/16 to 2019/20.

The LMH Corporate Plan has three key focuses:

Focus on Viability and Strength

LMH aims to carry out all of its activities in the most efficient and effective manner possible to create ‘social dividend’ which can be used to address deprivation, promote inclusion and support communities.
 

Focus on Enterprise and Growth

 
LMH aims to increase this ‘social dividend’ through an entrepreneurial approach by diversifying to offer new products and services.
 

Focus on Communities and Customers

The social purpose is vital in order to ensure that, whilst the Group diversifies its activities, it remains well anchored to its values and helps to improve the lives of the communities it operates in and the people living in LMH homes.

You can find out more about our business plan here

Our Homes

Homes are at the heart of what we do. Our 15,183 homes, 721 of which are for people aged 55 and over, come in a range of sizes.


46% 3 Bed Houses
22%
2 Bed Flats
9%
2 Bed Houses
7%
2 Bed Flats
7%
Bungalows
4%
4+ Bed Houses
5%
Other

Investing in Homes

LMH invested more than £41 million improving homes


Find out how we have spent our money to improve homes.


All LMH homes met the Decent Homes Standard.

During the year 491 homes were fitted with external wall insulation funded by: £1.7m ERDF grant and £2.1m internal funding.


This work will keep tenants warmer during the winter months and help to reduce their fuel bills.

Investing in Communities

LMH use ‘social dividend’ to address the social, environmental and economic problems faced by its customers and communities. In 2015/16 LMH’s Social Dividend Investment Fund has delivered a comprehensive range of training, employment, health, financial inclusion, youth engagement and digital inclusion projects to support our customers in achieving their full potential.


Rachel (VIP mentee)

“I love the LMH VIP programme and Anita (VIP mentor) is fabulous, she has supported me right through the programme and helped me create a record of my achievements which I can now present to future employers. I felt much more confident having had interview support from the Liverpool in Work business team and this helped me secure the 6 month paid placement”.

LMH invested £1.145m in communities to make a difference to the quality of people’s lives.

2015/16 Highlights

60 people found employment through Liverpool Mutual in Work, a unique partnership between LMH and Liverpool City Council offering LMH’s customers dedicated training and employment support to get people into or ready for work.

296 children received a Health Bursary to help them to get more active.

347 young people went to school after a healthy breakfast thanks to LMH’s Breakfast Club.

140 improved their IT skills, making themselves more employable and increasing their confidence, by attending one of our digital hubs.

552 people received fuel debt and energy efficiency advice to help to keep their bills down and balance their budget.

10 people gained paid placements to help them get into work through LMH’s Volunteers Into Placement (VIP) programme.


Other projects included:

Project Name Number of people
School Holiday Camps 152
Rise and Shine 296
School Breakfast Clubs 121
Cook and Taste 75
Healthy Children 52
Liverpool Mutual in Work 233
Volunteers into Placement 20
Physical Activities for Older Adults 31

Building Homes

In 2015/16 LMH invested £33.7m on new developments. During the year we built 166 new homes and started work on a further 300, which will be completed in 2016/17. This year LMH completed new build homes at Langtry Road, Duncan Street, Norris Green Village Phase 2 and Granby Four Streets.

Duncan Street

LMH completed 12 new modern homes on a prominent piece of land in the shadow of Liverpool Cathedral in December 2015.

Hazeldale Road

LMH completed 14 new homes on the former Dunlop Wellington boot making factory as part of a £7.3m development of 58 energy efficient homes in Walton.

Happy Birthday HMS

During 2015/16 HMS carried out 63,650 repairs for LMH.


In 2016 HMS celebrated its 5th Birthday.

Take a look at this film to find out more about their work and achievements.

Our Performance

Each year LMH sets service standards and targets across the business, we measure our performance against these targets to ensure customers receive a high standard of service.

Repairs

During the year HMS carried out 63,650 repairs for LMH.

Routine repairs completed on time

99.94% exceeding the target of 99%

Emergency repairs completed on time 100% meeting the target of 100%

Gas Servicing

By law LMH is responsible for undertaking gas servicing in your home every 12 months. It is very important for your safety that you give HMS access to your home to undertake gas servicing.

You put yourself and your neighbours at risk by not giving us access.

100% of LMH homes were gas serviced in 2015/16 meeting the target of 100%

You can watch a short video about gas servicing

Dealing with Anti-social Behaviour

LMH will not tolerate anti-social behaviour and tries to deal with issues as quickly and effectively as possible. The total number of ASB cases reported in 2015/16 decreased from 872 in the previous year, to 858. Of these cases 97.7% were resolved.

97.7% cases resolved exceeding the target of 90%.

74.35% were satisfied with the handling of their case exceeding the target of 70%.

Customer Service & Feedback

LMH Connect

Our customer service centre, LMH Connect, aims to resolve all customer enquiries on the first point of contact.

90.66% calls were resolved at the first point of contact, we just missed the target of 92.5%.


Complaints

We received 279 complaintes, a 32% reduction on the previous year.

97.08% of complaints were responded to in time, just missing the target of 100%.

46.88% of customers were satisfied with how their complaint was managed. We missed the target of 60%.

LMH is reviewing the complaints policy and procedure to improve satisfaction.

Collecting Rent

The majority of LMH’s income comes from rent, and this rent is vital to ensure we can continue to maintain your home to the highest standard and offer you great services.

99.4% of rent collected exceeding the target of 98%

£2.876 million due in rent arrears.

£65.2 million rental income.

Renting Homes

Empty homes can cause problems for neighbourhoods and LMH receives most of its income from rents, so it is important that when a tenant leaves an LMH home that it doesn’t remain empty for long. When a home is left empty, LMH has to ensure that it is of a high standard before a new tenant can move in. Last year 1038 LMH homes became empty and on average we re-let each home within 49.6 days We beat our target.

Help and Support

If you are falling behind with your rent you must contact us as soon as possible. You have a dedicated Rent Officer who will work with you to help you get things back on track. They will make sure you are getting all the benefits that you are entitled to. LMH work closely with the RAISE Benefit Advice Team who can offer advice and assistance if you are being impacted by the Government’s Welfare Reforms and agree an affordable repayment plan.

Welfare Reform Support

In 2015/16 LMH worked hard to support tenants who have been affected by the Government’s welfare reforms. All LMH frontline staff have received ‘Rent First’ training and specialist teams ensure that rent is collected and tenants can get support if they are struggling to make ends meet.

Our support, in association with Raise brought in an additional £3.5m in benefits for LMH customers.

If you are in receipt of Universal Credit or are affected by Welfare Reform and would like some help and support please contact us on: 0800 678 1894.


Living Independently

Highlights from the Year

Homes for Over 55s

LMH completed a £1.3m refurbishment of Shallcross Court (a development for people aged 55 and over). This is part of a £13m investment which has seen 17 LMH developments for older people refurbished to the highest of standards.

The homes within the schemes were upgraded with new high specification kitchens and bathrooms; communal areas and gardens were transformed into light, bright and pleasant spaces for residents to relax and enjoy each other’s company.



“It’s unbelievable - no one thought it would be this good. I can’t fault it in any way. LMH and HMS took everyone’s view point into consideration. The building and garden are much more attractive and accessible for everyone. In particular we feel much safer going in and out of our new front entrance”.

Joan, Shallcross Court resident.

Adaptations

Even a small adaptation can make a big difference to someone’s life. LMH want to help people to live more independently in their own homes. In 2015/16 LMH spent £800k on adaptations to help tenants to lead a better quality of life.

A Year in Pictures

To find out more information on any of our featured projects contact info@liverpoolmh.co.uk

LMH Joins forces with CREATE to recycle appliances for low-income households

LMH’s Volunteers in Placement (VIP) scheme wins a national award

Work began on transforming the former Ogden’s Factory, in Liverpool 6, into 152 new homes

Two teenagers started their first business with support from the Be Your Own Boss scheme


LMH staff marched as part of Homes for Everyone to celebrate Liverpool Pride

Local kids enjoyed activity and entertainment at LMH’s school holiday camps

We held Picnic in the Park events for local families to enjoy a free day out

We started the last refurbishment of 17 schemes for over 55s


Tenants’ artwork was completed to mark the £8m regeneration of Marwood Towers

We ran community impact days to offer advice and improve neighbourhoods

We worked with U R What U Eat to provide fresh fruit & veg at low prices in local neighbourhoods

Regular job clubs and digital hubs helped tenants improve their skills and get into work

Involving Customers

As a ‘tenant led’ organisation LMH has a strong commitment to involve and empower customers to help us to monitor and improve our services and ensure that they meet the needs of all our residents. Over the last year we have:

  • Continued to support the work of the Tenant Scrutiny Panel (TSP) to review LMH’s services and make recommendations for improvements. Since 2011 the Scrutiny Panel has carried out 8 reviews of different services areas and made 70 recommendations for improvement
  • Recruited and supported Tenant Inspectors, who assist the Scrutiny Panel by inspecting LMH’s services and feeding back on any improvements that could be made
  • Formed a youth panel to help us to shape and improve our services for young people
  • Worked with a diverse range of customer involvement groups for those who are disabled, over 55, or Lesbian, Gay, Bisexual and Transgender
  • Worked with a number of Tenants and Residents Associations to provide support, funding and advice

Equality and Diversity

We ask customers for personal information to help shape our services. It may seem intrusive to ask questions about age, ethnicity, gender, gender identity, disabilities, sexual orientation, religion or belief. However, we use this information to improve, target and tailor our service to customers' needs. Below is a breakdown of the different customers that live in LMH homes and the percentage of information that we hold about them.

Ethnicity

93.6% of our customers told us their ethnicity

Disability

88.3% of our customers told us if they have a disability

Age

99.3% of our customers told us their age


Gender

100% of our customers told us their gender

Sexuality

91.8% of our customers told us their sexual orientation

Religion

93.2% of our customers told us their religion

Value for Money Statement


Value for Money (VFM) is very important for LMH and we aim to generate as much income as possible and keep our costs down, whilst continuing to offer our customers an excellent service.

£1 of LMHs income comes from:

Rent 81p
Service Charge 2p
Grants 7p
Sale of properties 2p
Gift aid from HMS 3p
Other 5p

What we spend it on:

Interest Payable 5p
Housing Management 20p
Repairs 11p
Improvements 23p
Developments 20p
Depreciation & Impairment 15p
Other 6p

Social Dividend

We make all of these efficiencies and generate as much income as we can to create ‘Social Dividend’, which helps us to further our social purpose to address deprivation, promote inclusion and support communities.

Over the last year we spent £1.145m to make a difference to people’s lives by:

  • Reducing isolation and loneliness for older more vulnerable customers
  • Supporting partners to deliver services to reduce the impact of rising fuel costs, help residents access healthy food and provide services for children in need
  • Helping residents to improve their digital skills and access employment opportunities
  • Providing school holiday camps to keep local kids active and engaged during the summer period; and
  • Much more...

All this leads to happy and healthy residents and neighbourhoods where people want to live and work.

Homes are at Our Heart

Homes are LMH’s greatest asset, which last year was valued at £327.6m.

£1,250 is the amount on average that each property earns for LMH.

Last year we spent:

£18.6m on improving and maintaining homes, this included modernising our developments for over 55s and making homes more energy efficient.

Per home, we spent on average:

£880 on response repairs and work to empty properties.

£1,068 on major work and cyclical repairs.

£1,179 on housing management costs and overheads.

And we saved:

£716k through the way we buy goods and services.

£77k by reducing our over heads.

£153k by doing things more efficiently.

Total saving £946k

In 2016/17 we aim to save £1 million

  • We will use our property investment plan to continue to maintain and obtain homes that are of the highest standard and economically viable
  • We will improve our systems to make your experience of our service even better
  • We will continue to measure the impact of what we do to ensure that we remain efficient and deliver ‘social dividend’

Financial Statements

In our full Annual Report document, which you can download here, you will find all our financial statements. All the information in this report is taken from the full Annual Report document.

You can view some ‘out takes’ from the financial statements below.

Consolidated Statement of Comprehensive Income

For the year ended 31 March 2016

  Note 2016 £’000 2015 £’000
Turnover 3 72,655 69,512
Operating costs 3 (49,056) (46,562)
Impairment loss 12 (3,271) -
Operating surplus 3 20,328 22,950
Surplus on sale of fixed assets – housing properties 6 1,326 2,715
Interest receivable and other income 7 222 312
Interest payable and similar charges 8 (5,581) (6,509)
Other finance charges 23 (261) (64)
Surplus on ordinary activities before taxation 16,034 19,404
Tax on surplus on ordinary activities 11 2 (15)
Surplus for the year 16,036 19,389
FV gain on investment properties 14 - -
Actuarial gain /(loss) in respect of pension schemes 23 2,192 (6,167)
Total comprehensive income for the year 18,228 13,222

Consolidated Statement of Financial Position

At 31 March 2016

  Note 2016 £’000 2015 £’000
Housing properties 12 351,692 314,198
Other tangible fixed assets 13 3,396 3,756
355,088 317,954
Current assets
Stock & WIP 92 92
Debtors 17 7,631 8,442
Cash at bank and in hand 37,055 50,621
44,778 59,155
Creditors: Amounts falling due within one year 18 (25,426) (24,869)
Net current assets 19,352 34,286
Total assets less current liabilities 374,440 352,240
Creditors: Amounts falling due after more than one year 19 119,203 113,671
Provisions for liabilities
Net pension liability 23 6,583 8,143
Total net assets 248,654 230,426
Capital and reserves
Non-equity share capital 26 - -
Revenue reserve 248,654 230,426
Total reserves 248,654 230,426

The accompanying notes form part of the financial statements.

The financial statements were approved by the Board on 28 July 2016 and signed on its behalf by:

Bill Lacey

Chair

Will Roby

Vice Chair

Peter Fieldsend

Secretary

Our People

The success of LMH Group is dependent on the staff who deliver services to customers, and work in partnership with other partners. LMH has a strong people focus and prides itself on having an enthusiastic and dedicated workforce.

Learning and development is key in continuing to deliver excellent services and LMH has spent an average £550 per head for staff to study for professional and vocational qualifications.

600 staff employed

5.45 Average days lost due to sickness. We beat the target of 5.5 days

Staff turnover 20%*

*This figure is higher than last year due to an organisational restructure to offset the impact of the Government’s Summer 2015 Budget.

LMH is committed to achieving equality and diversity within the workplace and to ensure equal opportunity for individuals with regard to recruitment, employment and learning and development activities.

The ‘Your Voice’ staff group provides a forum for all minority groups to meet and discuss issues, new ideas and review polices to help LMH ensure that no members of staff are discriminated against.

10% of the workforce who classify themselves as disabled.

The Executive Team

Steve Coffey,
Chief Executive

Leads the overall LMH Group Executive Management Team in ensuring that the Group’s strategic objectives are delivered and service provision meets the highest standards.
 

Angela Forshaw, Executive Director (Operations)

Responsible for LMH housing management services including supported living, safer estates, property services, community regeneration and customer involvement services.

Peter Fieldsend, Executive Director (Resources)

Responsible for performance management, business development, communications, information technology, people services, development and finance.
 

Paul Worthington,
Managing Director HMS

Leads the Strategic co-ordination of the activities undertaken by the company. This involves ensuring HMS meets both the business plan and contract targets whilst developing the company.


Board Members

LMH has 16 Board members, who are recruited for their skills and knowledge including professional, commercial and local experience. The Board is supported by four Committees, which include:

  • Group Remuneration and Nominations Committee. (GRNC)
  • Group Audit and Risk Committee. (GARC)
  • Social Landlord Operations Committee. (SLOC)
  • Assets and Investment Committee. (AIC)

Board Member Type Board GRNC GARC SLOC AIC
Bill Lacey Independent Chair
Bruce Johnson Independent Chair
Andy Catterall Independent Chair
Greg Gottig Independent
Paula McGrath Independent
Will Roby Tenant Vice Chair Chair
Tommy Colleran Tenant
Jane Mason Tenant
Teri Wilson tenant
Ray Jones Tenant
Sue Fitzgerald Tenant Chair
Teresa Kennimouth Tenant
Councillor Mark Norris Councillor
Councillor Eryl Owen Councillor
Neil Garnham Co-optee
Wayne Hughes HMS Chair

Become an LMH Shareholder

All tenants and leaseholders are invited to become shareholding members. In 2015/16 LMH shareholder membership increased from 148 to 188.

It costs £1 to become a shareholder, which provides you with the right to vote at general meetings. Shareholders do not have any rights to dividends or distributions on winding up.

If you are interested in becoming a shareholder please contact us on 0800 678 1894 or email info@liverpoolmh.co.uk

The Year Ahead

Over the next financial year we will:

  • Launch Commutual, LMH’s new charitable arm, to deliver activities and support to communities across Liverpool.
  • Invest £39million to complete in excess of 300 homes for rent and sale through shared ownership.
  • Continue to find ways of getting better value for money, with a view to making savings of £1 million.
  • Build our first homes in the wider Liverpool City Region.
  • Continue to invest in communities by helping LMH tenants into work through ‘Liverpool Mutual in Work’ and offering training at our digital hubs and job clubs.