Annual Report 2016~2017 Building stronger communities Contents Community Investment - P.12 Accommodation Through our community at Apex - P.26 investment programme At 31 March 2017 Apex Annual Report 2015~2016 we have helped tenants Apex’s housing stock in a whole series of comprised 5,057 different ways. Read Financial Highlightshomes, including Delivering Great more on page 12. general needs and Homes - P.8 Apex Voluntary Housing Group at 31 March 2016 Financial supported living The Apex development accommodation. View team continues to Highlights - P.19 full details on page 26. deliver more high Developing Our It was another year quality homes for rent. People - P.14 of solid financial . Staff development, performance. View the Read more on page 8 Balance Sheet 31/03/2016 31/03/2015 Chairman’s View well-being initiatives highlights on page 19. and charity fundraising Fixed Assets - Housing, Land & Buildings 488.3m 417.5m - P.6 efforts. Read the HR Net Worth of Company - Housing Debt, Capital & Reserves 491.3m 424.0m The Chair reflects on story on page 14. Apex’s continuing Renewal & growth and the Upgrading - P.10 difficulties presented by Income & Expenditure £3.6m programme of Welfare Reform. Read Turnover 43.8m 37.2m Organisation planned and cyclical the Chairman’s View and refurbishment to Operating Costs 34.7m 29.4m Highlights - P.4 on page 6. It was another year of our older housing stock strong performance is creating new living Operating Surplus - before interest and transfers to reserves 9.1m 7.8m across all of Apex’s choices. See page 10. core housing and community investment activities. View the highlights on page 4. Board & Addresses & Management Company Information Contacts - P.29 Team - P.20 Internal Auditor: Capita Consulting,Addresses Beacon and House, contact 27 Clarendon Road, Belfast, BT1 3PR View board attendance External Auditor: PricewaterhouseCdetailsoopers, for all Wa Apexterfr ont Plaza, 8 Laganbank Road, Belfast, BT1 3LR and management Solicitors: Arthur Cox, Victoria House,accommodation. Gloucester Street, Belfast, BT1 4LS achievements. See Principal Bankers: First Trust Bank plc, Meadowbank, 141 Strand Road, Derry~Londonderry, BT48 7TN Key Performance pages 20~22. Indicators - P.16 This year’s key performance figures show an improvement in voids and reponse maintenance. View full details on page 16. 19 Apex Annual Report 2016~2017 Organisation Highlights 4 5 Apex Annual Report 2016~2017 Chairman’s View Martin Doherty additional £935,000 directly incomes by more than £500,000 build new homes and properly from their benefit income. over the past 18 months. Our maintain existing ones. ‘Affordable Credit Project’ The impact of these measures with various credit unions has It is clear that a crisis is looming. on already hard pressed enabled over 100 tenants It is imperative that key communities will be huge. to avail of low interest loans stakeholders are aware of what With less disposable income, amounting to some £80,000 lies ahead - tenants, housing everyday living will be a in total. Through our texting providers, politicians alike - struggle. Already we are seeing service, we continually highlight and take whatever measures the tell-tale signs. For example, the services of our financial are available to them to help the Foyle Foodbank in the inclusion officer or sign-post ameliorate the impact of what Apex Living Centre provided tenants to external agencies could be devastating personal emergency food for 4,381 adults providing budgeting advice and income cuts after 2020. The era and children between April 2016 financial guidance. of austerity may be here but the and March 2017. era of hardship is still to come! Needless to say my fellow Apex is offering help through Board members are extremely our financial inclusion concerned about the impact programme. Our benefit advice that any increase in rent arrears service has increased tenants will have on our future ability to After 50 years of business, Apex But, like all companies - big and whole host of different measures is now considered a major small, we need certainty to plan affecting Child Tax Credit, company within the Northern ahead to ensure the efficient use Employment Support Allowance, Ireland context - perhaps better of our resources in delivering Housing Benefit, Personal described as a large social top quality services, and it could Independence Payment, the enterprise. With an annual be argued by some that this is in introduction of Universal turnover nearing £40m and place. The current Programme Credit, etc., but the two big employing almost 650 staff, we for Government is demanding, ones affecting housing benefit make a significant contribution with public funding allocated for payments so far are the benefit to the local economy. During the the delivery of some 7,000 new cap and the ‘bedroom tax’. seven year period from 2007 to homes by 2020. Apex has in turn 2014 following the downturn, secured a £130m loan facility Tenants will be protected Apex was the largest developer with the European Investment from both until March 2020 of residential accommodation in Bank for the requisite private under the mitigation measures Northern Ireland building over finance. introduced in Northern Ireland 2,000 homes. It is estimated that except in certain circumstances; every £1m spent on construction But unfortunately social housing for example moving house sustains 12 jobs, and with an providers are affected by huge without management transfer annual development budget uncertainty coming from Welfare status. In most cases the status of between £30m - £40m we Reform. As the new measures quo will continue for now but have added considerably to take hold, tenants are beginning we estimate that after 2020, the opportunities at home for to see the real impact that it the 1,200 Apex tenants who construction employees without will have for them. The changes currently under-occupy their the need to work away. are coming about through a homes will have to pay an 6 7 Apex Annual Report 2016~2017 Delivering Great Homes Developing high quality, energy efficient new-build homes for social rent and affordable shared ownership homes for first-time buyers with FairShare FairShare Awareness of the FairShare Shared ownership with FairShare enabling families to part-own shared ownership scheme is now supported by Halifax, their home with reduced continues to build with Santander and Nationwide. The outgoings when compared to a growing number of Development delivering more new-build complex needs in Dungiven, Co. three lenders are providing their previous private rental. homebuyers across Northern We continue to successfully roll social homes. Our new design Derry and Brookeborough, Co. mortgages to FairShare A further 20 FairShare applications Ireland applying to FairShare out our ambitious programme and build procurement model Fermanagh, as the 2017 winner applicants across Northern for properties across Northern as a way to access affordable for new-build social housing with will deliver 128 dwellings of the ‘Sustainable Development Ireland. Five properties have Ireland are currently under home ownership. over 400 dwellings currently in Derry~Londonderry and of the Year Award’. completed through FairShare consideration. under construction and a further Bessbrook, Co. Armagh. We have 600 units at design stage. also procured a new framework Although we have delivered agreement for developers that COMPLEX NEEDS over 20% of the total of new- will facilitate the quick delivery build social housing under of new-build opportunities over construction in Northern Ireland the next four years. We place over the last 12 months, these great importance on delivering are indisputably challenging high quality, well designed and times with demand for new constructed homes. This was social housing continuing to recognised by the Chartered outstrip supply. To meet these Institute of Housing who challenges, we continue to independently judged our new look for innovative ways of bungalows for families with Apex received Chartered Institute of Housing’s ‘Sustainable Development of the Year Award’ in recognition of its work across Northern Ireland in developing bespoke homes for families with complex needs. 8 9 Apex Annual Report 2016~2017 Renewal & Upgrading Apex strives to make a real difference to the lives of all our tenants. This year we invested £3.6m as part of our on-going programme of remodelling, refurbishment and upgrade. Remodelling targeted mainly at replacing units to help reduce heating bills. Apex completed its remodelling kitchens and oil-fired heating Where tenants opted to retain strategy within learning systems. In Derry~Londonderry oil-fired heating, their old boilers disability schemes. Services a total of 111 kitchens were were replaced with energy were changed from residential replaced in Fernabbey, Crawford efficient condensing boilers. care to supported living with Square and Northland Way. Increased levels of loft insulation the extensive renovation of Modern vibrant finishes, chosen in a number of schemes has Beechway House. We are by the tenants transformed improved thermal performance, extremely grateful for the kitchen/dining areas. New highly helping to maximise energy commitment and cooperation efficient gas boilers were installed savings by keeping homes of residents and staff in seeing and integrated within the kitchen warmer for longer. these major refurbishment plans through to completion. The redesign has created internal and external spaces “the oak which are inviting, safe and kitchen doors are pleasant for tenants to enjoy. gorgeous” Upgrade & Refurbishment We invested £3.6m in our planned and cyclical maintenance programme, We love making shortbread The new kitchen is great 10 11 Apex Annual Report 2016~2017 Community Investment Through our community investment programme we are helping people to: fulfil their aspirations; build successful communities; and reduce their impact upon the environment Food Poverty Healthy Eating Our work in Africa During the year we continued Whilst this short-term support is During the year we continued to develop our food poverty vital, we are determined to build to work with our partners in projects.