Overview of business
The Group recognises that its primary objective is to provide homes and services to people in need, whilst at the same time ensuring that
sufficient income is generated from its activities to meet its operating costs, interest costs and funding covenants. Our business strategy
provides a clear balance between growth, value for money and excellent customer service. Our strong track record of prudent financial
management will ensure that we continue to meet the needs of existing customers as well as supporting the government in its appetite
to increase the supply of new homes. By adopting a rigorous approach to financial planning we are better placed to meet the needs of
our business. Our finances are managed through the annual budget, the monthly corporate financial reporting process and performance
against predetermined key performance targets. The Group keeps the Board engaged through regular updates on matters of financial
performance and financial/business planning.
During the year the Group has built on its strengths to maintain its position as a leading, effective and innovative housing organisation.
We have continued to manage our resources efficiently to ensure we meet the demands of today whilst building for the challenges of
tomorrow. The year ended 31 March 2016 has continued to see additional provision of social housing and further consolidation of a
sound financial position. The Group’s surplus for the year before tax was £7.170 million (2015: £39.160 million restated). Our financial
performance remains strong. Turnover of £120.1 million represented a 6.0% increase on the prior year. The operating surplus was £23.245
million in 2015/16, compared to £18.314 million in 2014/15. This continuing strong performance has enabled Accord to further strengthen
its financial position and continue its sustained investment in both properties and services.
Accord was delighted to welcome Gharana Housing Association to the Group during the year. Gharana joined the Group via a transfer
of engagements into Accord Housing Association on 5 October 2015. Gharana provides 52 units of general needs accommodation in a
sheltered setting in the Northamptonshire area.
Underlying surpluses (excluding gains on business combinations and before the effects of FRS 102 are considered) demonstrate an
improvement when compared with performance in 2015 and demonstrates the Group’s ability to manage continuing financial and
economic pressures in social housing and care sector marketplaces, and moreover deliver value for money. This will become increasingly
important in the future operating environment. In successfully delivering these services the Group continues to highlight its commitment
and focus on its core business of high quality housing and care services whilst maintaining a balance of a responsible approach to
financial management. In addition to providing services to over 40,000 people in the Midlands, we also serve customers in the North,
North West and North East of England and provide around 55,000 hours of care services each week.
The development of new homes remains a fundamental objective for the Group. As a housing provider we recognise the contribution that
a wider range of tenures can make to the achievement of balanced, sustainable communities. During 2015/16 £31.0M was committed to
developing and maintaining the Group’s housing assets. There were 12,638 units in management at 31 March 2016. The increase reflects
Gharana joining Accord in October 2015 and the management of the Staffordshire Centre of Excellence within Accord in May 2015.
Group Group
2016
2015
Property Numbers
Property Numbers
General needs housing
Affordable rents
Supported housing
Residential care homes
Shared ownership accommodation
Other
7,869
840
1,716
384
1,204
625
7,705
788
1,864
275
1,225
700
Total
12,638
12,557
The table shows the Group has a diverse portfolio of properties, which are located across the West Midlands. The Group’s housing stock
is a combination of new build and refurbished properties. Stock condition reports confirm that the housing stock continues to be well
maintained, and that all Group subsidiaries are fully compliant with the requirements of the Decent Homes Standard.
54
Accord Group