business plan 2016–2021 - melin homes · of the year 2015 top 100 not for profit ... simon...

Business Plan 2016–2021


Con

tent

s1 Executive Summary 3

2 Vision and Values 4

3 Areas of Operation 5

4 The Board 6

5 The Leadership Group and Melin’s Group Structure 8

6 Melin’s Operational Structure 11

7 Delivering the Vision 12

8 Action Plans 17

9 Financial Information 24

If you need the information in this business plan in large print, Braille, on CD, or explained in your own language, please contact us on 01495 745929.

A Welsh language version of this plan can be found at: www.melinhomes.co.uk/businessplan2016-20/welsh Printed copies are available on request.

SUSTAINABLE BUSINESS OF THE YEAR 2015

TOP 100 NOT FOR PROFIT2015 / 2016

Exe

cutiv

e S

umm

ary

SECTION 3 04SECTION 1 02

Of paramount importance to the Association is its core purpose of providing high quality homes and services. Through supportive income collection methods and a pro-active approach to the repair and maintenance of our homes we were able to deliver another very solid performance this year.

Of particular note was the fact that Melin was able to secure an additional £1.1m of extra income for its residents through its money advice and income maximisation services.

The development programme remains strong with more new homes being brought into management annually, all designed to maximise energy efficiency and so reduce running costs for residents.

The Melin Offer was launched last year which aims to shape services around the needs of individuals and their households and this has resulted in almost 200 of our residents engaging in the Melin Works programme, with many more receiving direct support to access and be trained in the use of technology. I am also delighted to report that Y Prentis, a partnership company established with Monmouthshire County Council has achieved its target of creating 70 new apprenticeships within the construction sector.

Melin continues to deliver the Welsh Government’s Warm Homes (Arbed) programme and now works with 12 of the 14 South Wales local authorities on a wide range of energy improvement measures in their communities. This programme also ensures that the Welsh pound realises maximum return, and with

Value Wales we have been able to evidence that for every £1 invested, £2 is realised for the Welsh economy.

The Association wants to be an attractive employer and it was very pleased to be awarded the Platinum Corporate Health Standard; re-accreditation to the Investors in People Gold standard; and at its first application to appear in the Top 100 non-profit organisations to work for in the UK.

Our thanks go to the many partner organisations who have helped to make Melin a successful and positive organisation, and to Board colleagues, staff team and Residents’ Panel, all of whom work tirelessly to deliver the best services that we can.

The Board have a very strong focus upon its governance and has reviewed its procedures in order to comply with the Community Housing Cymru code.

We look forward to the coming year, to meeting the challenges we will face with enthusiasm, determination and imagination, and to reporting on our continuing journey to providing the highest quality homes and services to the people and communities we serve.

Margaret Spencer, Chair

Mark Gardner,Chief Executive

Vis

ion

and

Val

ues

SECTION 2


l To be an excellent landlord

l To be a major provider of new homes

l To be a partner of choice

l To create opportunities for residents and communities

l To be a vibrant place to work

Our work will be underpinned by:

l Equality and Diversity

l Accessibility

l Innovation

l Partnership

l Communities and people, not just bricks and mortar

l Being responsive to change and flexible in approach

l Being an excellent employer

Vision Values

03

Are

as o

f op

erat

ion

SECTION 3


Figure 1: Map showing the five local authority areas Melin owns and manages homes in. Table 1: Breakdown of homes by local authority area

Local Authority

Rented Homes

Low cost home ownership

Mortgage Rescue

Other** Total

Blaenau Gwent 316 32 4 29 381Monmouthshire 790 111 15 204 1,120Newport 634 9 0 83 726Powys 56 26 0 0 82Torfaen 1,268 223 31 127 1,649Other LA* 0 17 0 0 17Total 3,064 418 50 443 3,975

Figure 2: Housing stock

Figures as of 31st March each year.

2,7202007

2,8042008

2,9652009

3,0202010

3,1792011

3,5112012

3,7322013

3,8612014

3,8982015

3,9752016

Powys

Blaenau Gwent

Torfaen

NewportOther LA*

* shared ownership homes in Cardiff, Caerphilly and Vale of Glamorgan.** includes leasehold, homeless leasing, intermediate rents and

commercial units.

Monmouthshire


Melin owns and manages homes across five local authority areas, providing a wide range of housing solutions, and high quality services.04

SECTION 4 05


The

Boa

rdMargaret Spencer

Chair

Margaret had a successful career in teaching and then social services prior to joining the Board. She is particularly interested in initiatives that enable people to develop their own potential and enhance their lives.

Tony Crowhurst B.Sc, CDip AF, MRICS

Employed by the Disability Advice Project and other Welsh access groups, specialising in disabilities and access issues.

Richard Essery BSc (Hons), MSc,

Chartered MCIPD, Grad ICSA, JP

Formerly a Human Resources and learning/development manager within the private and third sectors. A qualified Company Secretary. Sits on the UK and Welsh Advisory Councils for the charity Diabetes UK.

John Flagg BA(Hons), HMIT

Retired District Inspector of Taxes.

Chris Edmondson MSc Cert. Ed

Vice Chair

Freelance management researcher, adviser and editor.

Steve Cieslik BA(Hons), FCIH, FIRPM

Self employed leasehold management specialist.

Lyndon May

Tenant Board Member. Elected to the Board via tenants’ ballot April 2014.

03


The

Boa

rdSECTION 4 06

Simon Harrison ACIB, CeFA, CeMAP

20 years as a corporate manager with Barclays leaving to advise on corporate pensions and latterly buying onto a corporate finance business Flexible Commercial Funding Ltd.

Lorraine Morgan RN, RM, RCNT,

PGDipN (Lon), M.Sc (Econ) Wales,

FHEA

Lorraine is a registered nurse and social gerontologist and now works as an independent Consultant on Ageing. She is a visiting professor of gerontological nursing and at present has the Lead for Health and Education on the Welsh Government’s Ministerial Advisory Group on Ageing. She has worked in Housing, Higher Education and NHS. Toula Pearson

Tenant Board member. Elected to the Board via tenants’ ballot April 2014.Matt Miller MCIH, Dip Surv (P&D)

Housing Management Professional.

Dennis Robinson

Retired Solicitor.

Julie Thomas RNMH, Dip. Nursing, MSc

Retired Divisional Director of Community Services with Aneurin Bevan University Health Board.

Lead

ersh

ip G

roup

SECTION 5


07Mark Gardner FCIH

Chief Executive

Has been a Housing Association Chief Executive since 1995. Formerly the Director of the Chartered Institute of Housing in Wales and the South West of England. Began his housing career in 1983 as a Trainee Housing Manager in local government.

Peter Crockett FMATT, FCCA

Deputy Chief Executive

Held senior posts in the housing association sector since 1995 where he has gained considerable experience in all aspects of strategic finance, including loan funding as well as all other support services. Previously, Peter spent six years in a private accountancy and audit practice where he trained as a certified accountant. Peter is a company Director of Y Prentis and a member of Community Housing Cymru’s National Council.

Dave Cook MCIH, MBA, MSc

Director of Customer Services

Dave has been Director of Customer Services since 2009. He is responsible for Housing and Asset Management services and the Direct Works Force.

Dave joined the housing association sector in 1996 after a career in construction management. He is a Company Director of NowYourHome.

Peter Davies MCIOB, BSc

Director of Development

Peter has considerable experience of property development in the public, private and housing association sectors. He has worked in a senior capacity for a number of leading housing associations in Wales since 1989. Peter is a Company Director of NowYourHome.

Adrian Huckin FCIH, BA (Hons)

Director of Communities,

Enterprise and Care

Adrian joined Melin Homes in September 2010 having previously worked in senior positions in both the public and housing association sectors. His housing career spans a total of 32 years. He is a Fellow of the Chartered Institute of Housing. Adrian is a Company Director of Y Prentis.

Mel

in’s

Gro

up S

truc

ture

SECTION 5


08

Melin Homes is the group parent, and is an Industrial and Provident Society that operates to Charitable Rules. Melin provides and manages affordable housing across five local authority areas. Melin Homes is the sole trustee of the Henry Burton Almshouse Society and is the managing agent for the Queen Victoria and Albert Almshouse Society

NowYourHome (NYH) is a company limited by shares and is non-charitable. Melin Homes is the sole shareholder of NYH. NYH is Melin Homes’ development agent, and builds accommodation of all tenure types including for outright sale. NYH has an Independent Chair – Ian Parfitt.

Y Prentis is an independent company and is a company limited by guarantee. The company is jointly owned by Melin Homes and Monmouthshire County Council’s Community Interest Company CMC2. Y Prentis runs the South East Wales shared apprenticeship scheme in partnership with Construction Skills and its industry members.

Lead

ersh

ip G

roup

Str

uctu

reSECTION 6


09

Chief Executive

Director of Development Director of Customer Services

Director of Communities, Enterprise and Care


Mel

in’s

Op

erat

iona

l Str

uctu

reSECTION 3


10

Business Consultancy

Business Unit

Being Greener

Business Unit

Communities & Enterprise Business Unit

Living Well Business Unit

Housing Business Unit

Asset Management Business Unit

Development Business Unit


Director of Communities,

Enterprise and Care

Director of Customer Services

Director of Development

Chief Executive

SECTION 6 SECTION 6 M

elin

’s O

per

atio

nal S

truc

ture


11

The remit of the Business Consultancy Business Unit is:

l Financial Support

l Technology

l People and Learning

l Corporate Governance Services

l Communications

l Corporate Health and Safety

The remit of the Communities and Enterprise Business Unit is:

l Getting people into work or training

l New community business research and development

l Community development

l Social Enterprise

l Community and Resident Engagement

l Business Performance and Quality Management

l Digital Inclusion

The remit of the Being Greener Business Unit is:

l Delivery of Welsh Government energy programmes

l Energy consultancy and advice

The remit of the Living Well Business Unit is:

l Older Persons’ Housing Services including Extra Care

l Care and Repair

l Care and Support

l Supporting People

l In One Place – a collaboration between health, social care and housing

The remit of the Housing Business Unit is:

l Front line housing management and neighbourhood services

l Income and Inclusion l Dispute Resolution l Customer Contact Service

l Homeless Leasing

The remit of the Asset Management Business Unit is:

l Responsive maintenance services

l Planned maintenance services

l Service contract procurement and management

l Melin Direct Works Force (DWF) – gas and plumbing services; electrical services; painting and decorating; and Mel’s Handyperson service

The remit of the Development Department is:

l New build

l Land banking

l Regeneration

l Low cost home ownership

l Mortgage rescue

l Commercial Premises

l Intermediate Market Renting

l NowYourHome Consultancy Services

Melin has established seven business units which run the day to day services to residents and other customers. The Assistant Directors who lead the business units report to Leadership Group as illustrated on the previous page.

Del

iver

ing

the

Vis

ion

SECTION 7


12

Vision: to be an excellent landlord

Objectives to be achieved over the plan period:

Melin is an upper quartile or ‘top 10’ performer in all key performance areas.

Melin is recognised as an excellent service provider as validated by its customers and external standards.

Customer feedback and satisfaction drives service improvements.

Housing and Asset Management services are improved and shaped to meet customer requirements.

Melin’s residents are supported and assisted whilst legislation to reform welfare benefits is implemented.

Annual Action Plan

Implement the findings of the older persons’ housing feasibility study after Board consideration and approval.

Report upon the findings of the resident STAR survey and use this as a driver for service improvement, and to further enhance equalities and diversity.

Engage with residents to develop new models around service demand management and property compliance.

Continue to extend the influence of the Melin Residents’ Panel in respect of service improvements and service standards.

Implement the next phase of the Association’s plans for the introduction of universal credit, including enhancing pre-tenancy support to increase tenancy sustainability.

Implement the Board approved self-evaluation improvement plans.

Continue to provide accommodation available to homeless people in partnership with Local Authorities.

Prepare for changing housing legislation, in particular the Housing (Wales) Act 2014.

This section of the plan outlines the key objectives to be delivered over the life of the plan, and the annual targets and tasks that need to be completed for this to be achieved.


Del

iver

ing

the

Vis

ion

SECTION 7 13


Vision: to be a major provider of new homes


To maximise Social Housing Grant (SHG) investment.

To ensure all SHG allocated is spent.

Deliver an active and diverse SHG and non SHG programme to meet identified need.

Establish a strategic land bank and forward pipeline programme.

Effective procurement methods for development activities to be in place and realising efficiencies/ best value.

New homes built to lifetime homes standards with innovative specification improvements to promote sustainable development and reduce energy costs for residents.

Annual Action Plan

Update the Melin development strategy evidencing a strong and diverse pipeline programme, based upon a mixture of SHG and non SHG programmes.

Establish NowYourHome (NYH) as Melin’s development agent.

Explore new models of new home delivery to increase the supply of affordable accommodation.


Del

iver

ing

the

Vis

ion

SECTION 7


14

Vision: to be a partner of choice


Melin is a well known and respected organisation with an established reputation.

External relationships are strong and beneficial to Melin.

Melin communicates to a wide audience regarding its activities and achievements.

Risk is effectively managed across the organisation with plans in place for business continuity.

The resources available to Melin are optimised and used to further its objectives and growth aspirations.

Financial models are in place to demonstrate viability over a rolling 30 year period.

Governance systems are strong and kept under review.

Annual Action Plan

Grow Melin’s participation in the ‘In One Place’ programme collaboration with Health and Local Government colleagues.

Be the partner of choice for new energy programmes and sustain the Being Greener business unit work programme.

Keep financial strategies under review to ensure the ongoing availability of resources for existing and new projects, and effective risk management.

Review new governance systems against the Community Housing Cymru Code, and develop the training and support package for potential and existing Board members.


Del

iver

ing

the

Vis

ion

SECTION 7 15


Vision: to create opportunities for residents and communities


Melin’s activities and programmes are delivered within budgets allocated.

Melin utilises technology to the full to improve community communication, its efficiency and business effectiveness.

Partners want to work with Melin to deliver successful and sustainable projects that regenerate communities.

Melin innovates to create new initiatives that improve the quality of life for residents and communities.

Annual Action Plan

Apply the Melin Value For Money strategy to all procurement contracts and programmes including the continued usage of the community benefits measurement tool.

Review and enhance the ‘Melin Works’ programme and brand.

Sustain the merged Care and Repair agency.

Review Melin’s care and support activities.

Continue to support partner organisations in the development of their services that positively impact upon Melin’s residents and the wider community.


Del

iver

ing

the

Vis

ion

SECTION 7


16

Vision: to be a vibrant place to work


Melin has demonstrated its compliance and pro-activity in respect of equalities, disabilities and the Welsh Language.

Melin is recognised as a leading employer within and outside of the housing association movement.

Melin offers a competitive salary and benefits package which is valued by staff.

Staff are recognised for their contribution and achievements.

Annual Action Plan

Implement the corporate training plan.

Implement recommendations from the ‘Investors in Diversity’ improvement plan.

Review and enhance the staff Performance Management Strategy.

SECTION 8 A

ctio

n P

lans

17


Lead officers are referenced as follows:

Timescales and priorities are referenced as follows:

Priority levels are defined as follows:

CE Chief Executive

DCE Deputy Chief Executive

DD Director of Development

DCS Director of Customer Services

DCEC Director of Communities, Enterprise and Care

Quarter 1 a task to be completed by the end of June 2016

Quarter 2 a task to be completed by the end of September 2016

Quarter 3 a task to be completed by the end of December 2016

Quarter 4 a task to be completed by the end of March 2017

Priority 1 an essential task that must be completed

Priority 2 an important task that may be dependent on others outside of the organisation, or not business critical if some slippage occurs.

SECTION 8 A

ctio

n P

lans

18


Vision: to be an excellent landlord

Action Outcome Resources Lead Officer / Department

Timescale and Priority Level

Implement the findings of the older persons’ housing feasibility study after Board consideration and approval.

Strategy to be implemented over a multi-year timescale.

To be agreed as part of individual project plans.

DCEC

Living Well, Asset Management and Development Business Units.

Quarter 4

Priority 1

Report upon the findings of the resident STAR survey and use this as a driver for service improvement, and to further enhance equalities and diversity.

STAR survey analysed and reported and improvement plan in place.

Staff resources in place

DCEC

Communities and Enterprise Business Unit

Quarter 2

Priority 1

Engage with residents to develop new models around service demand management and property compliance.

New model developed with evidence of resident engagement and influence.


DCS

Asset Management Business Unit.

Quarter 4

Priority 1

Continue to extend the influence of the Melin Residents’ Panel in respect of service improvements and service standards.

Residents actively involved in shaping, developing and challenging service standards.

Residents’ Panel budget £30,000

DCEC


Quarter 4

Priority 1

SECTION 8 A

ctio

n P

lans


19 Vision: to be an excellent landlord (continued)



Implement the next phase of the Association’s plans for the introduction of universal credit, including enhancing pre-tenancy support to increase tenancy sustainability.

Increased access to and use of the ‘Melin Offer’ with higher tenancy sustainability rates.

Staff resources in place.

DCS


Quarter 2

Priority 1

Implement the Board approved self-evaluation improvement plans.

Improvement plans implemented and difference made measured.


DCEC


Quarter 4

Priority 1

Continue to provide accommodation available to homeless people in partnership with Local Authorities.

Accommodation available via Melin Leasing. Cost savings to LA monitored and reported.

Staff resources in place. Costs provided for and recovered within mini business budget.

DCS


Quarter 4

Priority 1

Prepare for changing housing legislation, in particular the Housing (Wales) Act 2014.

Compliance with new legislation requirements as they are produced by Welsh Government.

Incorporated within operational budgets.

DCS

Asset Management and Housing Business Units

Quarter 4

Priority 1

SECTION 8 A

ctio

n P

lans

20


Vision: to be a major provider of new homes 1



Update the Melin development strategy evidencing a strong and diverse pipeline programme, based upon a mixture of SHG and non SHG programmes.

Strategy agreed by Board and approved programme delivered.

SHG

Private Finance

Housing Finance Grant

Recycled Capital Grant

DD


Quarter 1-4

Priority 1

Establish NowYourHome (NYH) as Melin’s development agent.

New project agreements approved and in place.

Staffing resources in place.

DD


Quarter 4

Priority 1

Explore new models of new home delivery to increase the supply of affordable accommodation.

Evidence of new models of development discussed with and agreed by Board.


DD


Quarter 4

Priority 2

SECTION 8 A

ctio

n P

lans


21 Vision: to be a partner of choice 1



Grow Melin’s participation in the ‘In One Place’ programme collaboration with Health and Local Government colleagues.

New accommodation and partnership opportunities created and delivered.


DCEC

Living Well and Development Business Units

Quarter 4

Priority 1

Be the partner of choice for new energy programmes and sustain the Being Greener business unit.

Secure the sustainability of the Being Greener business unit.


DCE

Being Greener Business Unit

Quarter 4

Priority 1

Review financial strategies to ensure the ongoing availability of resources for existing and new projects.

Ongoing review of financial strategies monitored by Board and Audit and Risk Committee


DCE

Business Consultancy Business Unit

Quarter 4

Priority 1

Review new governance systems against the Community Housing Cymru Code, and develop the training and support package for potential and existing Board members.

Governance systems comply with Community Housing Cymru code and new engagement, support and training proposals in place.


CE


Quarter 4

Priority 1

Act

ion

Pla

nsSECTION 8


22 Vision: to create opportunities for residents and communities 1



Apply the VFM strategy to all procurement contracts and programmes including the enhanced usage of the community benefits toolkit.

Evidence of added value to Melin residents and communities.


DCE


Quarter 4

Priority 1

Review and enhance the ‘Melin Works’ programme and brand.

Increased number of work and training business opportunities.

c£150K staff costs and external grant funding.

DCEC


Quarter 2

Priority1

Sustain the newly merged Care and Repair agency.

New resources for the agency secured and delivery targets met.


DCEC


Quarter 4

Priority 1

Review Melin’s care and support activities.

Service review reported to Board.


DCEC


Quarter 4

Priority 2

Continue to support partner organisations in the development of their services that positively impact upon Melin’s residents and the wider community.

New collaboration opportunities reported to Board with evidence of benefit to Melin residents.

Staff resources provided for.

DCS

Housing and Living Well Business Units.

Quarter 4

Priority 2

SECTION 8 A

ctio

n P

lans

23


Vision: to be a vibrant place to work 1



Implement the corporate training plan.

To evidence structured training for all staff and Board members.

Training budget DCE


Quarter 4

Priority 1

Implement recommendations from the ‘Investors in Diversity’ improvement plan.

Improvement plan in place and actioned.

Within operational budgets

DCE/ DCEC

Business Consultancy and Communities and Enterprise Business Units

Quarter 4

Priority 1

Review and enhance the staff Performance Management Strategy.

Strategy agreed with staff team and Board, with 2017 implementation plan.

Within operational budgets

DCE


Quarter 3

Priority 1

Fina

ncia

l inf

orm

atio

nSECTION 9


24 I&E Accounts 1

2016/17 Budget

2017/18 Forecast

2018/19 Forecast

2019/20 Forecast

2020/21 Forecast

Turnover £’000 £’000 £’000 £’000 £’000

Net rents & service charges 16,262 17,382 18,923 19,877 20,512Project income 13,051 18,200 18,746 19,308 19,887Income from other activities 263 271 279 287 296

29,576 35,853 37,948 39,472 40,695

Operating expenses Repairs and maintenance 1,989 2,074 2,171 2,282 2,379Service costs 629 655 685 709 730Management costs 7,471 7,808 8,019 8,335 8,662Project expenditure 13,049 18,200 18,746 19,308 19,887

23,138 28,737 29,621 30,634 31,658

Operating surplus 6,438 7,116 8,327 8,838 9,037

Interest payable 4,084 3,987 4,703 4,534 4,471Property sales 0 0 0 0 0

Surplus for the year before depreciation 2,354 3,129 3,624 4,304 4,566Depreciation charge 2,111 2,237 2,466 2,656 2,833Surplus for the year after depreciation 243 892 1,158 1,648 1,733Transfers (to)/from designated reserves 0 0 0 0 0Surplus after transfers to reserves 243 892 1,158 1,648 1,733Interest cover covenant 1.27 1.47 1.50 1.67 1.74

SECTION 9 Fi

nanc

ial i

nfor

mat

ion


25 Balance Sheet 1

2016/17 Budget

2017/18 Forecast

2018/19 Forecast

2019/20 Forecast

2020/21 Forecast

Tangible fixed assets £’000 £’000 £’000 £’000 £’000

Housing properties less depreciation 248,812 259,861 266,048 268,380 271,891 Less: Social housing & other grant (139,905) (143,635) (145,267) (145,827) (146,732)

108,907 116,226 120,781 122,553 125,159 Long term investments 3,724 3,724 3,724 3,724 3,724

Other fixed assets 3,439 2,964 2,916 2,864 2,807

116,070 122,914 127,421 129,141 131,690

Current assets

Debtors 9,296 6,130 5,530 5,030 4,603

9,296 6,130 5,530 5,030 4,603

Creditors: Amounts falling due within one year 9,101 11,674 9,943 8,473 7,225

Net current assets 195 (5,544) (4,413) (3,443) (2,622)

116,265 117,370 123,008 125,698 129,068Creditors: Amounts falling due after one year 99,979 100,332 104,812 105,852 107,489

16,286 17,038 18,196 19,846 21,579Reserves

Revenue reserve 15,986 16,725 17,883 19,533 21,266Designated & restricted reserves 300 313 313 313 313

16,286 17,038 18,196 19,846 21,579Gearing ratio 59% 60% 62% 62% 62%

SECTION 9 Fi

nanc

ial i

nfor

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ion


26 Cash Flow 1

2016/17 Budget

2017/18 Forecast

2018/19 Forecast

2019/20 Forecast

2020/21 Forecast

Capital £’000 £’001 £’002 £’003 £’004

Grants 6,047 3,169 1,632 560 906Acquisition and construction of properties (23,010) (13,876) (8,675) (5,081) (6,379)Capital outflow (16,963) (10,707) (7,043) (4,521) (5,474)Revenue

IncomeCash received from customers 29,682 36,610 38,586 40,009 41,159Interest collected 22 4 0 0 0Sales of properties 0 0 0 0 0

29,704 36,614 38,586 40,009 41,159

Expenditure

Estate costs 18,399 24,123 24,526 24,990 25,495

Salary costs 6,118 6,389 6,690 6,970 7,262Loan repayments 5,679 6,108 6,545 6,526 19,599Other fixed assets 0 0 0 0 0

30,195 36,621 37,761 38,486 52,355

Revenue inflow/(outflow) (491) (7) 824 1,523 (11,196)Total inflow/(outflow) (17,454) (10,714) (6,219) (2,998) (16,669)Loan funding 18,000 4,525 6,219 2,998 16,669

CASH BALANCES b/fwd 1,092 1,638 (4,551) (4,551) (4,551)CASH BALANCES c/fwd 1,638 (4,551) (4,551) (4,551) (4,551)

SECTION 9 Assumptions for forecastFi

nanc

ial i

nfor

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ion

27


1 Assured Rental Income set in accordance with Welsh Government (WG) Benchmark regime.

2 Secured Rental Income is assumed to increase in line with current policy until it reaches assured benchmark rents.

3 Voids and bad debts have been assumed at current levels.

4 Salary costs have been increased in line with terms and conditions and staffing plan proposals.

5 Management costs have been fully reviewed with each item being fully costed and accounted for by each team.

6 Interest rates on existing LIBOR facilities have been assumed at 5%, with existing fixed facilities being accounted for at the agreed fixed rate and new facilities assumed at a flat rate of 5%.

7 Melin has assumed that there will be no property sales

8 Development growth is based upon indicative programme indications provided by Welsh Government and Local Government partners.

9 Melin has utilised the BRIXX model to calculate its financial forecasts and this model operates on a breakeven cashflow position. Therefore, Melin will utilise its overdraft facility in full prior to drawing any new loan facilities.

business plan 2016–2021 - melin homes · of the year 2015 top 100 not for profit ... simon...

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