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LMH Group Logo

Annual Report

1st April 2017 to 31st March 2018

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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 view and download our full Consolidated Financial Statement and Directors' Report here.

Welcome

10 years ago, LMH was created with a clear purpose - to provide great quality affordable homes for families and communities across Liverpool. The housing sector has changed dramatically since then, but our purpose is still as relevant as it was on 1st April 2018.

This year's annual report celebrates achievements made in our 10th year across LMH Group. With your support, we have grown in to a diverse group of community-focused businesses - one that reinvests commercial revenues into much-needed affordable homes, as well as in meaningful social projects for people to improve their opportunities.

2017/18 was another positive year at LMH Group. We invested £9 million in a wide range of improvements to our housing stock, built 245 new homes and gift aided £2 million from our contracting arm HMS to LMH Group's charity, ComMutual - making a big difference to lives and futures.

We also secured the highest ratings for viability and governance from the UK social housing regulator (V1 and G1), confirming LMH as a strong organisation with a great future.

We are exceptionally proud of what we have accomplished, as we continue to improve performance, results and services.

Now we want to do even more to support communities facing a severe lack of affordable housing and the impacts of Welfare Reform.

This will remain our core priority in the coming year and beyond.

Paul Burns Signature
Steve Coffey Signature

About us

LMH Group is a socially-driven housing provider, serving customers and communities across Liverpool and the North West. Our members are:

LMH Logo

We own and manage 15,467 homes in Liverpool and the wider City Region. We're committed to maintaining all homes to the highest standards.

HMS Logo

A building, repairs and maintenance contractor for Liverpool and the North West. Profits are reinvested to deliver the Group's social dividend.

LMH Developments Logo

Builders of high-quality homes for affordable rent and future home ownership, fulfilling LMH's vision of new homes for Liverpool City Region.

ComMutual Logo

Formed to make a positive difference to communities and lives, building on work previously delivered by LMH and FireFit Hub.

The group in numbers

Pound Circle

£77.2m


Our annual turnover
(2016/17: £76.0m)
People

592


Staff members
(2016/17: 571)
Sherelle

Our vision is to have 'Pride in our homes' and be 'Proud of our neighbourhoods'.

10 years on from launch, this core ethos continues to inspire everything we do.

2017/18 at a glance

House

15,467

homes
owned
(2016/17: 15,334)

House

£77.6m

annual
turnover
(2016/17: £74.7m)

House

£408m

total value
of homes
(2016/17: £376m)

House

£522m

home repairs and improvements
(since 2008)

Our homes


Great quality homes are at the heart of everything we do.

This year, we invested £10.3m on home improvements, including £9m of major works and cyclical works.

We're proud that 100% of our homes continue to meet the Government's Decent Homes Standard.

Our homes comprise:

   12,964 general needs (social rent)

   1,602 affordable rent

   115 shared ownership

   722 homes for older people

   64 temporary housing

You told us

Customer feedback tells us if we need to do things differently and is really valuable to us.

Smiley Face
99.8

%

satisfaction with repairs
and maintenance

Smiley Face
88.2

%

satisfaction with the
quality of homes

Smiley Face
90

%

satisfaction with allocations
and lettings

Smiley Face
84.1

%

satisfaction with
neighbourhoods

Repairing Homes

We're working to keep every LMH home in the best possible condition and provide the best service for customers.

Our in-house contractor HMS carried our £9m in planned and cyclical maintenance works this year.

Teams responded quickly and efficiently to routine repair calls and were available 24/7 for emergencies.

Here's how we performed in 2017/18:

House

53,165

routine repairs

House

10,558

gas and repair emergencies

House

63,723

total routine and emergency repairs

House

100%

of homes had a Gas Safety Certificate

Empty Homes

When a property becomes empty (void), we lose rental income.

This means we have less money to invest in improvements to homes and services.

We're committed to delivering high standard repairs and always aim to re-let homes in the shortest time possible, once relevant safety checks have been completed.

2017/18 performance:

Keys

5.35%

tenancy turnover

House

43.1

average days to re-let empty homes(2016/17: 43.5 days)

Clock

3,045

hours spent clearing void properties

Broom

£315k

total cost of clearing vacant homes

Rent and tenancy support

Our income comes from a variety of sources, but mainly from rent and service charges.

On 31st March 2018, rent arrears totalled £2.1m. We collected 100.12% of rent during the year.

We offer additional support for customers who are impacted by welfare reform or struggling to pay their rent, including:

Universal Credit logo

757

customers on
Universal Credit
(2016/17: 604)

ComMutual logo

14

digital Hubs helped tenants
to make UC applications and
manage claims

Raise logo

£4m

benefits secured by RAISE Welfare
Rights Advisory Services for tenants
(2016/17: £3.9m)

Customer service

Our Customer Service Centre helped with over 650 calls per day - a total of 167,484 phone enquiries over the year. We launched a new service centre system in October 2017 to offer even more ways for customers to get in touch.

Between 1st October 2017 and year end, we helped with:

Average waiting times were:

Texts

2,039

texts

29 Seconds

seconds

for phone enquiries

Webchats

548

webchat
contacts

80 Seconds

seconds

for webchat

Emails

5,853

emails

44 Minutes

minutes

for emails

Complaints

We know we don't always get it right. That's why we respond to every complaint we receive.

Here's how we're doing:

Thumbs Down

407 total complaints

252 informal

155 formal

4 escalated to appeal

Do it online

We're developing an even better online service for customers, offering 24/7 availability,
secure transactions and no waiting times. The new service will be ready later this year.

Did you know:

Online account

1,690

customers have an online account

Pay rent online

3,717

tenants chose to pay their rent online

That's £3.4m in total online payments

We're developing a new online platform to make it even easier to 'do it online'. You can:

> Report, book and check repairs

> Check your rent account

> Pay your rent


> Set up a Direct Debit

> Update your personal details

> Access your tenancy information

Neighbourhoods

Investing in neighbourhoods helps to create places where people can be proud to live.

Safety is a top priority and we always tackle incidents of anti-social behaviour (ASB) robustly.

In 2017/18 we helped with:

Exclamation

896

cases of ASB,
8.2% less than last year

Exclamation

5.15

ASB cases per 1,000
LMH homes

All cases were dealt with in:

Clock

24 Hours

hate crimes and domestic violence

Calendar

5 Days

all other
cases

HMS

HMS provides all repair and maintenance services for LMH customers and also delivers services for other local landlords.

HMS also builds large-scale housing schemes across the North West. Landmark schemes this year included transforming the iconic Ogden's site in Everton into quality affordable housing.

100% of HMS profits are gift aided to support social outcomes.

Find out more

2017/18 at a glance

Pound

£32m

annual turnover
(2016/17: £25.7m)

Graph

£2.2m

profit
(2016/17: £3.0m)

Gift Aid

£2m

gift aid to ComMutual
(2016/17: £2m)

Thumbs Up

3,000

compliments received

Repairing and maintaining homes

As well as looking after LMH homes, HMS teams provide repair and maintenance services to other landlord clients, including
Steve Biko Housing Association.

HMS installed heating upgrades to over 500 homes in 2017/18.

Spanner

45,920

total repairs
(including emergencies)

Spanner

180

daily responsive
repairs completed

Spanner

1,460

total repair jobs
for Steve Biko HA

Spanner

100%

routine and emergency repairs completed within target time

7 days - average time taken to complete routine repairs

Each job was carefully planned to minimise disruption to customers.
Teams will send a text or email to confirm appointments before arriving on site.

Focus on gas

HMS teams made sure that all 14,561 LMH homes with a gas supply had a valid Landlord Gas Service Record.

Independent specialist Morgan Lambert checks HMS' gas inspection and testing process every year. HMS is proud to rank highest in the country for the last six years for its gas services.

Morgan Lambert Logo
HMS Man

HMS teams installed:

Fence

10,000

metres of fencing

Fence

112

new kitchens

Fence

103

new bathrooms

Fence

600

energy efficient boilers

Fence

5,560

smoke and heat alarms

Fence

376

blocks benefitted
from fire risk
assessment work

Adapting homes

Adaptations and property extensions support people to live independently in their homes.

HMS carried out 30 major adaptations in Liverpool, 14 in St. Helens and 136 in Cheshire West and Chester*. Additionally, HMS created 24 level access showers in Liverpool, 9 in St. Helens and 114 in Cheshire West and Chester*.

*delivered through LMH's Home Assistance Hub service

"It's changed our lives, not just for Tommy, but for me too. It means I don't have to go upstairs and leave Tommy, so I'm close by whenever he needs me."

-Rita, HMS Customer

Rita

HMS New-build projects

HMS has also been busy working on major construction and extension projects:

Ogdens

OGDEN'S PLACE, EVERTON

Winsford

WINSFORD COUNTY PRIMARY

Sommerville

SOMERVILLE PRIMARY SCHOOL, WALLASEY

Sherelle

For communities to thrive, it is essential to provide the best housing.

The homes we build are designed for a range of customer needs, from rented accommodation to low-cost home ownership.

2017/18 at a glance

Pound

£22.3m

annual turnover
(2016/17: £10.8m)

House

£24.9m

investment in new homes for Liverpool City Region

Funding

£13.3m

Homes England funding secured

House

245

new homes created

Local Authority

5

local authority areas with active schemes

Shared Ownership

39

shared ownership homes were sold to local families

Our projects

Our ambitious development programme aims to tackle the local housing crisis, providing both affordable rent and affordable home ownership options.

We doubled the number of live schemes and started on site with two of our biggest ever developments:

The Approach

The Approach, Edge Lane

145 homes for Shared Ownership and Rent to Buy, tenures that suit future home owners.

The Maples

The Maples, Kirkby

100 extra care apartments and a mix of 70 homes for affordable rent and Rent to Buy.

In total, we had

Pound Circle

816

homes in progress

People

22

live new-build schemes
(2016/17: 11)

ComMutual

ComMutual was formed to make a positive difference to communities and lives, building on work previously delivered by
LMH and Toxteth FireFit Hub.

2017/18 at a glance

Income

£2.5m

income received

Social Value

£9.22

social value for every £1 spent

Social Impact

£7.1m

total social impact generated

Visits

74,880

visits to our FireFit Hub in Toxteth

ComMutual's key impact areas

Texts

EMPLOYMENT

New opportunities to find work
through volunteering, placements,
training and bursaries

29 Seconds

GO DIGITAL

Tackling digital exclusion
and helping people build
vital online skills

Webchats

MONEY
MATTERS

Advice and guidance for those
who want to improve their
financial position

80 Seconds

HEALTH AND
WELLBEING

Improving health outcomes
with a core focus on younger
and older people

Value for money

1st April 2017 to 31st March 2018

We always look for the best ways to be efficient in the way we spend money.

Our aim is to achieve Value for Money across the organisation, but not at the expense of tenants, leaseholders and other
LMH Group customers.

 Rent

49p

 Service charges

3p

 Grants

10p

 Sales of properties   

2p

 Refinancing

31p

 Gift aid

1p

 Other

4p

Rent chart

 Developments

33p

 Housing management 

21p

 Repairs

11p

 Improvements

13p

 Depreciation

11p

 Interest payable

7p

 Other

4p

Development chart

Last year, we invested over £35m on our housing stock across Liverpool and Liverpool City Region, including £10.3m to improve and repair existing homes.

We began the financial year with the aim to save £250,000 by buying goods and services more efficiently. Our actual saving was almost twice the target at £467,000.

This includes:

£78,000

saving on ICT solutions

£199,000

on repairs and maintenance

We're aiming to save another £500,000 over the next financial year (2018/19), focusing on Property Services and Developments.

Financial statements

The information in this report is taken from our Consolidated Financial Statement and Directors’ Report, which you can download here.

Here are some highlights from the financial statements:

Consolidated Statement of Comprehensive Income

For the year ended 31 March 2018

Note 2018 £’000 2017 £’000
Turnover 3 77,235 76,024
Operating costs 3 (51,236) (46,893)

Operating surplus 5 25,999 29,131
Gain on disposal of fixed assets (non-operational) 6 1,689 1,139
Interest receivable and other income 7 215 167
Interest payable and similar charges 8 (6,555) (5,310)
Fair value adjustment on refiance 24 (11,105) -
Write off debt issue costs 24 (1,753) -
Other finance charges 24 (216) (223)
Surplus on ordinary activities before taxation 8,274 24,904
Tax on surplus on ordinary activities 11 154 (192)
Surplus for the year 8,428 24,712
Actuarial gain /(loss) in respect of pension schemes 25 (2,434) (1,783)
Total comprehensive income for the year 10,862 22,929

Consolidated Statement of Financial Position

At 31 March 2017

Note 2018 £’000 2017 £’000
Housing properties 12 408,141 376,151
Other tangible fixed assets 13 2,268 2,063
Investment properties 14 925 925
411,334 379,139
Current assets
Properties held for sale 16 7,217 2,334
Stock & WIP 17 340 2,781
Debtors 18 7,088 7,433
Cash at bank and in hand 82,328 40,954
96,973 53,502
Creditors: Amounts falling due within one year 19 (16,639) (26,595)
Net current assets 80,334 26,907
Total assets less current liabilities 491,668 406,045
Creditors: Amounts falling due after more than one year 20 202,167 125,633
Provisions for liabilities 26 598 618
Net pension liability 25 6,912 8,664
Total net assets 281,991 271,129
Capital and reserves
Non-equity share capital 28 - -
Revenue reserve 279,699 269,218
Restricted reserve 2,292 1,911
Total reserves 281,991 271,129


The accompanying notes form part of the financial statements.

The financial statements were approved by the Board on 26th July 2018 and signed on its behalf by:

Paul Burns
Chair

Ray Jones
Board Member

Peter Fieldsend
Secretary