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Strong results lay the foundations for investment in new homes and communities

Our 2017 Annual Report is now available. 

At a glance:

- Number of homes managed up by almost 20% to 182,725
- Turnover up by 29% to £795.1m
- Derwent Living joins the Group
- £187m invested into new homes 
- Number of homes built or acquired up by 35% to 1,519. Including the construction of 312 affordable homes
- Investment in improving and maintaining homes up by 12% to £108.7m
- New contract wins will see 16,000 homes built over the coming years
- £85m of social value generated in the communities we operate in 
- £400m corporate bond issued to fund the Group's social housing activities and a £65m retail bond issued enabling us to raise debt on non-social housing activities

 

 Annual report 2017

Places for People's diversification strategy has enabled the business to report another set of strong results helping it to increase investment in both new housebuilding and improving and maintaining existing stock.

Over the financial year ending 31 March 2017, social landlord and facilities management business Derwent Living joined the Group, helping to increase the number of homes we manage by almost 20% from 152,783 to 182,725.

This partnership also saw us enter the student property market for the first time and gain a solid foothold in the market. Derwent Living's student business, Derwent Students, is the UK's third largest manager of student accommodation.

Overall, we saw turnover increase to £795.1m in the 2016/17 financial year, up 29% from £616m in 2015/16.

Over the same period, profit before tax more than doubled from £43.7m to £119.7m in 2016/17. However, the increase in profit includes a one-off exceptional item of £41.4m after Derwent Living joined the Group in December 2016.

The partnership has reaped immediate benefits for both organisations by creating more than £2m of efficiencies in treasury alone as Derwent Living benefits from our centralised treasury function and increased purchasing power. At the same time Derwent Living retains its local expertise through its board and management team.

In the past financial year, we have invested £187m in new homes increasing the number of homes built or acquired by 35% from 1,119 in 2015/16 to 1,519 including the construction of 312 new affordable homes.

At 31 March 2017, a further 1,477 homes were under construction. At the same time, we increased investment in improving and maintaining its existing homes by 12% from £97m in 2015/16 to £108.7m last year.

Our development pipeline continues to grow, following a number of high-profile contract wins. Places for People plans to build 16,000 new homes in the coming years including:

  • a joint venture with Balfour Beatty to construct 1,500 new homes in the Queen Elizabeth Olympic Park
  • plans to build 1,150 homes in a new mixed-use quarter on brownfield land in Birmingham
  • a partnership with Aberdeen City Council to create up to 3,000 new homes
  • a £200m regeneration programme with Runnymede Borough Council which will develop and regenerate a number of sites over the next decade, including Egham town centre.

£85m of social value was generated in the communities we operate in. This included supporting 700 people into employment and a further 3,087 into training or learning, as well as employing more than 500 apprentices.

During a period of political and economic uncertainty, we continued to attract significant investment. In August 2016, it issued a £400m corporate bond to fund the Group's social housing activities. We also successfully issued a £65m retail bond enabling us to raise debt on non-social housing activities, and, in turn, improve the breadth and cost of our funding portfolio.

Places for People Group Chief Executive, David Cowans, said: "We are buoyed by the continued success of our diversification strategy and remain very confident in the strength of this approach, which helps us to continue to report strong results year-on-year.

"Our robust business model gives us an agility to respond to market conditions in order to protect and increase our assets and revenue, which in turn enables us to invest more in homes, services and the communities in which we operate. It has also been a key factor in enabling Places for People to increase its pipeline of new homes, with plans to build 16,000 new homes in the coming years."

View our 2017 annual report.

 

21 July 2017