Annual Report & Value for Money
Statement 2016/17

Our Annual Report looks back on our performance over the last business year and showcases our priorities and achievements, as well as our plans for delivering excellent services into the future.

You can read our full Consolidated Financial Statement and Directors’ Report here.


 
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About LMH Group

Liverpool Mutual Homes (LMH) is a housing association, established in 2008, that owns 15,334 homes in Liverpool and the wider City Region. LMH is committed to building, renovating and maintaining all homes to the highest standards.

Housing Maintenance Solutions (HMS) is a building, repairs and maintenance contractor for Liverpool and the North West. Working with LMH and other clients, profits are reinvested into the Group’s social dividend, delivered by ComMutual.

LMH Developments builds and refurbishes high-quality homes for affordable rent and shared ownership on behalf of LMH Group. An active development programme is fulfilling LMH’s vision of new homes for the Liverpool City Region.

ComMutual was established in January 2017 as LMH Group’s charitable arm. Formed to make a positive difference to communities and lives across Merseyside, ComMutual builds on work previously delivered by LMH and Toxteth FireFit Hub.

LMH Group in numbers


15,334 Homes

15,334 Homes

571 Employees

571 Employees

£76m Group Turnover

£76m Group Turnover

£25.7m HMS Turnover

£25.7m HMS Turnover

£380m Value of Stock

£380m Value of Stock

299 new homes built

299 new homes built

£2.4m HMS Gift Aid

£2.4m HMS Gift Aid

£10.8 million LMH Developments turnover

£10.8 million LMH Developments turnover

43,279 Repairs & maintenance appointments kept

43,279 Repairs & maintenance appointments kept

Our Vision

LMH’s vision is to have ‘Pride in Our Homes’ and be ‘Proud of our Neighbourhoods’. HMS’ vision is ‘To be a Leading Maintenance and Construction Services Provider in the North West’.

LMH Group’s Corporate Plan supports these visions and sets out our goals and aspirations from 2015/16 until 2019/20.

The 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

Great homes are at the heart of what we do. Our 15,334 homes comprise:

  • 13,179 for general needs at social rent
  • 1,351 for affordable rent
  • 18 for shared ownership
  • 722 for people aged 55 and older
  • 64 for temporary housing

45% 3 Bed Houses
22% 1 Bed Flats
10% 2 Bed Houses
7% 2 Bed Flats
8% Bungalows
4% 4+ Bed Houses
4% Other

Investing in Homes

Almost £48 million was invested in improving homes and new-build developments.


See how we invested these funds:


All homes met the Decent Homes Standard.

LMH continued to invest in homes in accordance with our 30-year Property Improvement Plan.

During the year, Major Works and Cyclical Repairs focused on improving the physical environment of LMH neighbourhoods and improving the energy efficiency of some of LMH’s hardest to heat homes.

Investing in Communities

Every year, the Group looks to maximise outcomes and minimise costs whilst remaining anchored by social purpose and clear values. This approach generates a ‘social dividend’, which is reinvested to address social, environmental and economic issues faced by customers and communities.

Our new charitable arm ComMutual was formed in January 2017 to make a positive difference to communities and improve lives across Merseyside.

Partly funded through Gift Aid from HMS, ComMutual focuses on four key impact areas:

ComMutual's Highlights 2016/17


We invested £770,000 in measurable social projects.

Every £1 spent generated £8.70 in social value.


firefit logo

January 2017 saw ComMutual take ownership of the FireFit Hub, a state of the art facility for the community in Toxteth.

95 people found employment through the Liverpool Mutual in Work partnership with Liverpool City Council

31 Access to Work placements provided paid work experience for young people aged between 16 and 29.

279 children attended school holiday camps to keep active and engaged and 521 young people began school days at an LMH Breakfast Club.

115 people benefited from charitable grants through the Charitable Grants Worker partnership with the CAB.

179 tenants improved their IT skills, by attending one of our digital hubs.

301 Health and Wellbeing sessions were offered to customers of all ages, from primary age children to older people.

New Homes

In 2016/17, LMH Developments completed 299 new homes and started work on a further 350, across 11 live schemes. The Group invested £31.2 million for the year to deliver high-quality homes for communities across Liverpool.

Key schemes completed in the year include:

Marwood Towers, Everton
81 Homes

Hazeldale Road, Warbreck
58 Homes

Buckles Nursery, Knowsley
51 Homes

Naylorsfield Drive, Belle Vale
33 Homes

Hewitson Road, Tuebrook
8 Homes

Tetlow Street, Everton
16 Homes

Everton Road, Everton
10 Homes

Harrington Place, Roby
4 Homes

HMS Builds, Repairs and Maintains

During 2016/17, HMS carried out 59,916 home repairs for LMH. 99.98% of all HMS repairs were completed within the target time.

As well as this core activity, HMS continued to grow into new business areas and undertook a variety of large-scale construction, refurbishment and adaptation works for customers across the North West.

Major projects included:

Granby Four Streets
Transforming 43 Victorian homes

Shallcross Court
Refurbishing LMH apartments for older people

Cunard Building
Improvement works to a city landmark

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 consistently high standard of service.

In 2016/17, HMS carried out 59,916 repairs for LMH.

99.98% of routine repairs were completed on time, exceeding our target of 99.5%.

100% of emergency repairs were completed on time (target: 100%).

Continued positive performance in repairs is a result of strong and effective partnership working between LMH and HMS.

LMH is required by law to carry out a full gas service to all homes every 12 months.

99.99% of LMH homes were gas serviced in 2016/17 - just falling short of our 100% target.

This slight decline was the result of tenants at two properties failing to allow access.

LMH will not tolerate anti-social behaviour and aims to deal with all issues as quickly and effectively as possible.

The total number of ASB cases reported in 2016/17 increased to 976, from 858 in the previous year.

All cases were responded to within the LMH service standards, which are 24 hours for Hate Crimes and Domestic Violence cases, and 5 days for other cases. Of these cases, 61% were resolved.

56% were satisfied with the handling of their case. A review of customer satisfaction perceptions of the service provided by LMH will inform future service improvements.

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

91.27% of calls were resolved at the first point of contact. This represents an improvement on the previous year (90.66%), but is slightly below the 92.5% target.

We received 302 complaints, which is slightly more than those received last year. 100% of complaints were responded to within the service target time, compared to 97.08% achieved in 2015/16.

46% of customers were satisfied with how their complaint was managed.

LMH’s Tenant Scrutiny Panel reviewed the complaints service in 2016/17. As a result, we have streamlined the approach to focus on putting things right faster.

The new ‘Right in Five, Resolve in 10’ customer feedback service was introduced in April 2017 to support the early resolution of complaints.

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

    100.12% of rent was collected, compared to 99.44% last year
    £2.4 million was due in rent arrears at year-end, a decrease of £0.4 million from 2015/16

Excellent performance in this area was supported by effective pre-tenancy 'affordability' assessments and the hard work of our outbound call team.

LMH recognises the impact of Welfare Reform and roll-out of Universal Credit, which continue to present a challenging economic climate for tenants.

In 2016/17, LMH continued to embed a ‘Rent First’ ethos to support customers and create a payment culture. Frontline staff received awareness 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 the RAISE Benefit Advice Team, offers independent benefits advice to vulnerable tenants.

This year, 1,853 customers accessed the service, resulting in £3.9 million of extra income for tenants.

Customers affected by Welfare Reform and Universal Credit who need help and support can call the team on 0800 678 1894.

Empty homes can cause problems for neighbourhoods and reduce rental income, so it is important that homes do not remain empty for long.

Last year, 968 homes became empty. On average, we re-let each home in 43.5 days, against a target of 50 days.

1,351 LMH properties, or 9% of our total stock, are charged at an Affordable Rent.

So far, 400 homes have been converted to Affordable Rent and 400 more conversions are underway, in line with the Affordable Homes bid to the Department for Communities and Local Government.

LMH completed the £1.3 million refurbishment of Shallcross Court in August 2016.

The sheltered scheme in Everton was transformed by HMS from a dated 1960s structure into a bright, welcoming facility for people over the age of 55.

Over £13 million has been spent to revitalise LMH’s 17 older people’s schemes to the highest 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.

A Year in Pictures

We held Picnic in the Park family activity days.

We held Picnic in the Park family activity days.

LMH and HMS supported UK Gas Safety Week.

LMH and HMS supported UK Gas Safety Week.

The build began for 150 homes at Ogden's.

The build began for 150 homes at Ogden's.

54 adaptations were installed in LMH homes.

54 adaptations were installed in LMH homes.

Our school holiday camps were a big hit.

Our school holiday camps were a big hit.

HMS was rated the UK's top Gas Contractor.

HMS was rated the UK's top Gas Contractor.

10 customers obtained paid VIP placements.

10 customers obtained paid VIP placements.

We built our first modular homes in Belle Vale.

We built our first modular homes in Belle Vale.

We transformed Marwood Towers in Everton.

We transformed Marwood Towers in Everton.

The FireFit Hub became part of ComMutual.

The FireFit Hub became part of ComMutual.

HMS stepped up back to work initiatives.

HMS stepped up back to work initiatives.

Our Digital Hubs helped tenants get online.

Our Digital Hubs helped tenants get online.

Involving Customers

LMH is a tenant-led organisation and aims to involve and empower customers across key areas of service delivery.

Customers help us monitor and improve services and ensure they meet customers’ needs.

In 2016/17, we have:

Continued to work with the Tenant Scrutiny Panel (TSP) to review LMH services and suggest improvements. This year, the panel reviewed engagement, participation and the complaints service. Recommendations were accepted by the Social Landlord Operations Committee (SLOC)

Delivered impact days to increase engagement and involvement, including 29 Estate Impact Days and 2 ‘Picnic in the Park’ events, as well as support for partner projects like ‘Loving Lodge Lane’

Worked with a diverse range of customer involvement groups for those who are disabled, over 55, or Lesbian, Gay, Bisexual and Transgender

Worked with Tenant and Resident Associations to provide support, funding and advice

Created ComMutual, our new charitable arm, to deliver meaningful social projects and support communities

Carried out a Governance Review to keep customers at the heart of what we do - the Board approved a simpler Governance structure in November 2016, with the changes coming into force in May 2017


Equality and Diversity


LMH strives to understand customers’ needs and recognises that people are different and will have different needs. LMH’s ‘People Matter’ strategy for equality, diversity and inclusion sets out our commitment to continuous improvement and excellent services.

We ask customers for personal information to help shape our services. Information collected about age, ethnicity, gender, gender identity, disabilities, sexual orientation, religion or belief is used to improve, target and tailor our service to customers' needs.

The charts below show the different customers that live in LMH homes:


Ethnicity

96.1% of our customers told us their ethnicity

Disability

87.9% of our customers told us if they have a disability

Age

100% of our customers told us their age



Gender

100% of our customers told us their gender

Sexuality

91.9% of our customers told us their sexual orientation

Religion

95.5% of our customers told us their religion

LMH supported the Alzheimer’s Society in 2016/17, raising £4,452 in funds during the year.

Working in partnership with the charity, 300 LMH staff members undertook ‘Dementia Friends’ champions training, helping to create dementia friendly communities. Everyone who took part has now become a ‘Dementia Friend’.

Value for Money Statement

Value for Money (VfM) is a key objective for LMH. We aim to generate as much income as possible whilst keeping costs down and offering all customers an excellent service.

Watch our Value for Money video to see how we performed in 2016/17:

£1 of LMHs income comes from:

Rent 78p
Service Charge 4p
Grants 8p
Sale of properties 2p
Other 8p


What we spend it on:

Interest Payable 7p
Housing Management 21p
Repairs 11p
Improvements 13p
Developments 33p
Depreciation & Impairment 11p
Other 4p

Homes are at Our Heart

Homes are LMH’s greatest asset, which last year was valued at £380m.

£1,494 is the amount on average that each property earns for LMH.

Last year we spent:

Over £12m on improving and maintaining homes, this included modernising our developments for over 55s and making homes more energy efficient.

And we saved:

£668k through the way we buy goods and services.

£1,017,000k by reducing our over heads.

£51,000 by doing things more efficiently.

Total saving £1,736,000

Financial Statements

Our full Consolidated Financial Statement and Directors’ Report contains all our financial statements. The information in this report is taken from the full 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.

Here are some highlights from the financial statements:.

Consolidated Statement of Comprehensive Income

For the year ended 31 March 2017

Note 2017 £’000 2016 £’000
Turnover 3 76,024 72,655
Operating costs 3 (46,893) (49,056)
Impairment loss
- (3,271)
Operating surplus 5 29,131 20,328
Gain on disposal of fixed assets (non-operational) 6 1,139 1,326
Interest receivable and other income 7 167 223
Interest payable and similar charges 8 (5,310) (5,581)
Other finance charges 25 (223) (261)
Surplus on ordinary activities before taxation 24,904 16,035
Tax on surplus on ordinary activities 11 (192) (31)
Surplus for the year 24,712 16,004
Actuarial gain /(loss) in respect of pension schemes 25 (1,783) 2,192
Total comprehensive income for the year 22,929 18,196

Consolidated Statement of Financial Position

At 31 March 2017

Note 2017 £’000 Restated 2016 £’000
Housing properties 12 376,150 350,913
Other tangible fixed assets 13 2,063 2,471
Investment properties 14 925 925
379,138 354,309
Current assets
Properties held for sale 16 2,335 779
Stock & WIP 17 2,781 92
Debtors 18 7,433 7,631
Cash at bank and in hand 40,954 37,055
53,503 45,557
Creditors: Amounts falling due within one year 19 (26,596) (25,421)
Net current assets 26,907 20,136
Total assets less current liabilities 406,045 374,445
Creditors: Amounts falling due after more than one year 20 125,633 119,203
Provisions for liabilities 26 618 485
Net pension liability 25 8,664 6,583
Total net assets 271,129 248,174
Capital and reserves
Non-equity share capital 28 - -
Revenue reserve 269,218 248,174
Restricted reserve 1,911 -
Total reserves 271,129 248,174


The accompanying notes form part of the financial statements.

The financial statements were approved by the Board on 27 July 2017 and signed on its behalf by:

Paul Burns

Chair

Ray Jones

Board Member

Peter Fieldsend

Secretary

Our People

We recognise that our success depends on the quality of our workforce. LMH Group has a strong people focus and we are proud of our enthusiastic and dedicated members of staff.

571 staff employed

8.56 Average days lost due to sickness. (Target 5 Days)

Staff turnover 10.1%*

Absence increased compared to the previous year (5.45 days) due to a number of long-term staff illnesses. New occupational health services implemented during the year are expected to have a positive impact on attendance and support a quicker return to work for employees.

Staff turnover decreased compared to 2015/16, when an organisational restructure to offset the impact of the Government’s Summer 2015 Budget saw turnover levels of 20.23%. This year’s figure is normal for the sector.

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.

11.5% of the LMH workforce classify themselves as disabled.

LMH is currently pursuing Disability Confident accreditation, which will replace the ‘Two Ticks’ scheme and the guaranteed interview scheme.

A ’Wellbeing Group’ has been set up to lead on new initiatives in order to promote employee physical and mental wellbeing.

A full-time dedicated Learning Partner has been recruited to enable LMH to deliver internal accredited courses and more ‘in house’ training.

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

Board members are recruited for their skills and knowledge, including professional, commercial and local experience. The Board is supported by the following Committees:

  • Group Remuneration and Nominations Committee (GRNC)
  • Group Audit and Risk Committee (GARC)
  • Social Landlord Operations Committee (SLOC)
  • Assets and Investment Committee (Committee disbanded 1st April 2017)

Board Member Type Board GRNC GARC SLOC AIC
Bill Lacey Independent Chair Retired 31st March 2017
Bruce Johnson Independent Chair Retired 19th September 2016
Andy Catterall Independent Chair Retired 1st April 2016
Greg Gottig Independent Chair
Paula McGrath Independent
Will Roby Tenant Vice Chair Chair
Tommy Colleran Tenant Retired 31st March 2017
Jane Mason Tenant Retired 31st March 2017
Teri Wilson tenant Retired 19th September 2017
Ray Jones Tenant
Sue Fitzgerald Tenant Chair Retired 19th September 2016
Teresa Kennimouth Tenant Retired 14th April 2016
Gordon Hood Independent Appointed 1st April 2016
Sarah Jane Saunders Appointed 19th September 2016
Paul Burns Board Member Chair Appointed 1st April 2017
Steve Coffey Executive Board Member Appointed 28th April 2017
Andrew Gray Co-optee Co-optee on AIC until 28th April 2017.
Appointed to the board 28th April 2017
Cllr Sharon Connor Co-optee Appointed 20th July 2016
Cllr Leon Tootle Co-optee Appointed 20th July 2016
Neil Garnham Co-optee
Wayne Hughes HMS Chair

Become an LMH Shareholder

All tenants and leaseholders are invited to become shareholding members.

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

In 2017/18, we aim to:

  • • Continue to maintain economically viable homes that are of the highest standard.

  • • Invest in communities through ComMutual through four key impact areas - Money Matters, Go Digital, Health and Wellbeing and Employment - to tackle social issues and support customers through Welfare Reform

  • • Exceed our target of 350 new homes built for rent and sale through shared ownership across Liverpool and the wider region - development such as Ogden’s Place Everton (a partnership with HMS) are on site now.

  • • Launch a property company to deliver sales and marketing activities across new tenures.

  • • Continue to expand our presence in the wider Liverpool City Region.

  • • And we will also continue to measure what we do, so we remain efficient and deliver social dividend to further our social purpose, address deprivation, promote inclusion and support communities.