VFM targets / Performance against targets
We said, we did
In 2015 the Group set the following commitments and the table below outlines progress made to meet those commitments:
Target
Complete and realise the benefits of the first
phase of the Group’s review of its commercial
properties, identifying capital receipts on disposal
and substantial overhead savings.
Progress
What we have done
The Group has already exited from number of leasehold
obligations. In addition to this the Group is currently in the
process of rationalising corporate estate in the Black Country
locality by 50% by consolidating all housing and care
operations in the Walsall locality into one central office. The
first phase of this work has generated net savings of £250,000
with targeted disposal proceeds of £750k to £1million.
During the year a number of assets were disposed or repurposed to ensure they make a future financial contribution
the form of capital receipt or ongoing revenue stream.
Complete and realise the benefits the Group’s
review of its care and support assets, identifying
capital receipts on disposal or re-commissioning
assets into alternate usage e.g. general needs to
ensure an appropriate return on these assets.
Property no longer in use was disposed on the open market
securing an income of over £425,000. Care and support
schemes where services have been terminated by the local
authority, have been reassigned as general needs housing
– these properties now delivery a future rental yield from the
point of let and meet housing need.
Furthermore, negotiations have been completed with third
party service providers to run their complementary community
support services from Accord properties – these properties
now generate a positive financial contribution in the form of a
commercial rental stream.
Identify property disposal proceeds in
accordance with the Group Stock Disposal
strategy and financial targets included in the
Group Business Plan
During 2015/16 financial year the Group disposed of 80 newly
developed and existing homes generating an income stream
of £6.1 million (against target of £7.1m) The sales proceeds
from disposal of these units will support the delivery of around
50 new homes.
Financial Statements 2016
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