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Business Plan 2017-18

The Community Housing Group and all subsidiaries share the same Vision, Mission & Values

Vestia draws on a mixture of grants, contracts and intergroup income to deliver its services. This mixture of income helps provide security for the long term future of Vestia. Longer term planning is challenging as aspects of the business are reliant on retention and securing new contracts and this requires careful but entrepreneurial management of the business.

With continued Government austerity, there will be further cuts in grant to local government and other public bodies. Over the next five years, the Housing Sector will face its own austerity with enforced cuts in the rents we charge our tenants, loss of development grant for affordable homes to rent and loss of funding for support services for our most vulnerable tenants. This is creating a very difficult operating environment for Housing Providers and organisations like Vestia wanting to help the most vulnerable people in our communities.

Over the last five years we have generated limited surpluses which have been set aside as reserves. These ensure we can meet unexpected demands, future liabilities should we lose a contract and most importantly can be invested to realise new business opportunities.During early years for each subsidiary within the Group, the internal recharges were capped to support their development. However in the long term a commercial but cost-effective arrangement is required.

These intergroup recharges for accommodation, IT, HR and Financial Services are under review and over the lifetime of the plan we will ensure Vestia pays a full and fair contribution to Group overheads.

Vestia has no capital assets.

The table below includes a summary of financial performance over the last three years and summary for the next two years.

Reserves: These are the surpluses built up during previous year’s operations and are carried forward each year. In some years these will decrease if there are redundancy costs as a result of the ending of grant programme or we chose to invest part of the reserves to secure new business.

Turnover: this is the total income received during the year. This includes grant, contracts and intergroup income to deliver services on behalf of TCHG.

Operating costs: Our operating costs include all outgoings during the year including salaries, overheads and payments for services or spent to different projects we deliver.

Restricted income: within our accounts there is some restricted income which can only be spent on specific projects. This is often a condition of the grant. These sums are accounted for separately so we can provide evidence and assurances to funders that the incomes has been used solely for the purpose it was intended

2013/14
£'000s
2014/15
£'000s
2015/16
£'000s
2016/17
£'000s
2017/18
£'000s
Reserves carried forward 527 633 748 747 853
Turnover 1,349 1396 846 1,238 1038
Operating Costs 1,243 1,281 847 1,400 1027
Year-end reserves 633 748 747 585 864

2020 Predictions

The majority of Vestia income is made up of large contracts, intergroup income or significant grants we have secured rather than multiple smaller scale contracts or ‘sales’. Therefore changes in turnover can be quite significant where contract ends, grant funded project ends or we secure new contract or grant.

The Board takes an active role in monitoring budgets and cash-flows to ensure that we respond quickly to any loss of funding and ensure operating costs remain within budget.

Vestia draws on a mixture of grants, contracts and intergroup income to deliver its services. This mixture of income helps provide security for the long term future of Vestia.

Longer term planning is challenging as aspects of the business are reliant on retention and securing new contracts and this requires careful but entrepreneurial management of the business. We have generated limited surpluses which are set aside as reserves that allow us to meet unexpected demands, any future liabilities should we lose a contract and most importantly can be used to generate new business opportunities.

We will continue to review the intergroup recharges for accommodation, IT, HR and Financial Services to ensure Vestia pays full and fair contribution to Group overheads and delivers value for money.

Vestia has no capital assets.

We have adopted the Group's risk management framework.

You will find details in the Common Principles area of our group site .

As part of The Community Housing group, we offer a generous range of employee benefits and support packages. You will find details in the Common Principles area of our group site

We value feedback from customers and use the information to help us to continually improve our service. We also benchmark against our peers. You will find further details in the Common Principles area of our group site

The work we provide through our Employment Services contributes to the Group's Social Value targets. You can see our performance in the Value For Money area of the group website.

We have adopted the Group's Health & Safety Policy. You will find further details in the Common Principles area of our group site