RHP Financial accounts and annual report 2022/23
We’ve now published our 2022/23 annual report and financial statements, which you can download below.
Key highlights
- Operating surplus of £18.6m (2022: £16.1m)
- £12.4m was invested in capital works to existing properties (2022: £10.3m)
- A+ (negative) credit rating from Standard and Poor's affirmed
- £150m secured new and restated funding
- G1/V1 regulatory governance and viability rating affirmed following an In-Depth Assessment
Despite the challenging economic environment, we’re pleased to report improved performance and financial strength. This has led to an increased capacity to improve the safety, quality, and energy efficiency of our homes, as well as being able to continue to build new ones.
It has been a year of immense change for us as an organisation, with our long-standing Chief Executive David Done OBE leaving in March, and Sarah Thomas taking over in April.
As well as dealing with the same external challenges as the rest of the sector, we have also been navigating a change in repairs partners, with much of 2022/23 focussed on the successful launch of our new repairs service on 1 June.
Investment in current homes
Investing in our existing homes is just as important as building new ones. Last year we invested £26.6m in improving and maintaining current homes. In addition, we spent £2.3m on refurbishing homes to re-let, which 224 customers moved into. In the current year, we’ll invest an extra £2m in major programmes to deal with damp and mould, and energy efficiency.
Tackling the housing crisis
We invested £14.4m in the delivery of new homes. Although not delivering our target due to development delays, we are excited to have handed over our first modular housing development at Edgar Road, and to have achieved planning permission for our largest regeneration scheme at Ham Close. Our pipeline is strong, and despite a quieter period, we’ll be delivering some excellent schemes in much needed areas over the next few years.
Keeping our customers safe
Our primary focus is on ensuring we keep our customers safe. Our health and safety and compliance teams strive for 100% compliance and meeting all regulatory requirements. We have also been proactively preparing for the changes as a result of the Building Safety Bill.
Tackling damp and mould remains a key priority for us, and we have invested extra resource in this area to help us do this.
Service levels
Our service has not been at the high levels we aspire to deliver. Like other housing associations across the sector, we’ve faced unprecedented demand for our repairs and maintenance service. We’ve had challenges meeting this demand due to the impact of inflation on materials and labour shortages. In turn, this has driven a rise in customer contact and an increase in complaints, which has impacted our ability to respond quickly.
We continue to listen to the areas that matter most to our customers, and use this insight to shape improvements going forward.
Navigating economic challenges
The global economic environment with rising prices, spiralling energy costs and increases in interest rates have had an impact on our customers and business. We continue to work closely with our customers and other local providers to support them through this difficult time.
This includes supporting customers in maximising the benefits they are entitled to, signposting to available support or supporting them directly through our hardship fund.
Preparing for a new repairs service
In May 2023, our repairs contract with Mears, and gas and compliance contract with Robert Heath Heating expired. Following a rigorous procurement process, we appointed Kier Places as our new repairs partner, and Smith & Byford for gas and compliance.
We made the decision to bring our repairs service in-house for the first time, to gain greater control over its delivery. This led to us working with Kier Places to form our subsidiary RHP Home, which launched on 1 June.
We’re proud to have involved customers at every stage of the procurement journey, including helping us to choose our new partners, and also inputting into the selection of a new repairs diagnostic tool for our website.
Financial strength
We’re pleased to present another year of strong financial performance, with our operating margin and key financial metrics remaining healthy. Our legacy of strong financial performance has enabled the Board to make important strategic choices about where we invest our resources, including actively choosing to invest more in existing stock. Our liquidity and performance against our banking covenants remained strong throughout the year and we were reaffirmed as G1/V1 by the Regulator of Social Housing in March 2023 through their in-depth assessment process, and A+ (negative) by S&P in June 2023.
An inspiring and inclusive employer
We continue to employ people who connect with our social purpose and are passionate about delivering excellent service. Employee satisfaction levels remain strong at 86%, however we always strive to do better. We’re proud to have been recognised externally for our work as an employer including being named as a Top Employer 2023, gaining Gold accreditation in the Mind Workplace Wellbeing Index and winning ‘Family Friendly Employer of the Year’ at the Personnel Today Awards.
Looking forwards
We're optimistic about the future and know our new partnerships, coupled with our financial strength and robust strategic plan, will result in delivery against our ambitions and an improvement to our service. Ultimately enabling us to fulfil our purpose of providing safe, secure, affordable homes – opening the door to life opportunities.