Annual report and financial statements 2020 - 2021 At a glance G1/V2 Regulatory rating £144.7m 1,631 Surplus before tax FTE staff A- (stable) S&P rating £923.3m 3,822 A (stable) Available liquidity Homes let Fitch rating 779 947 1,342 Plots acquired Starts on site Homes completed 66,537 17,402 £21bn Properties owned Unencumbered Value of properties or managed properties Board, Executive Directors and Advisers Contents Board Executive Board Strategic report Ian Ellis Kate Davies (Chair) Paul Phillips Welcome from the Chair 1 Fred Angole Andy Belton Chief Executive’s introduction 3 (appointed 20 August 2020) Katie Bond Strategic context 4 Stephen Bitti Carl Byrne Jenny Buck Where we work 9 (resigned 15 September 2020) Elly Hoult (appointed 30 April 2020) Key performance indicators 10 Elaine Bucknor John Hughes Chief Financial Officer's report 11 Linde Carr Vipul Thacker Kate Davies (Chief Executive) Mark Vaughan Governance Jane Hollinshead Jeremy Stibbe (resigned 31 May 2020) The Board and Committees 23 Bruce Mew The Executive Board 25 Arike Oke Company Secretary (appointed 17 December 2020) Andrew Nankivell Statement of Board’s responsibilities 28 Alex Phillips (Senior Independent Director) Financial Paul Phillips statements (Chief Financial Officer) Richard Powell Independent auditor's report to the members 33 Statement of comprehensive income 41 Registered office and head office Registrations Statement of changes in reserves 42 Bruce Kenrick House Registered Society Number: 7746 Statement of financial position 44 2 Killick Street Registered Provider Number: 4880 London N1 9FL A charity exempt from registration. Statement of cash flow 45 Regulated by the Regulator of Social Housing. Notes to the financial statements 46 Independent auditors Principal solicitors Principal bankers BDO LLP Devonshires Solicitors LLP Barclays Bank PLC Statutory Auditors 30 Finsbury Circus Business Banking 55 Baker Street London, EC2M 7DT Floor 28 London, W1U 7EU 1 Churchill Place London, E14 5HP Notting Hill Genesis Annual report and financial statements 2020 - 2021 Strategic report Peckham Place Southwark Notting Hill Genesis Annual report and financial statements 2020 - 2021 Strategic report Governance Financial statements 1 Welcome from the Chair It has been a positive, and at times humbling, experience to witness how the people who make up Notting Hill Genesis have responded to and largely overcome the multiple challenges of the past financial year. I, and the rest of the board, have In December 2020 we welcomed been impressed by how everyone Arike Oke, the managing director has pulled together not only to for Black Cultural Archives, the address the pandemic, but also home of Black British history. Arike to respond to the legitimate and has worked in heritage for more long-standing societal concerns than 15 years, from the seminal that were brought so sharply into Connecting Histories project focus by the murder of George in Birmingham, to building the Floyd, and to the challenges faced Wellcome Collection’s archive, across the sector as we seek to and co-convening Hull’s first Black make our buildings compliant with History Month. representative to ensure the voices first and support them to move on new regulations and keep our of our most important customers with their lives following this most residents safe. Fred and Arike have been appointed are heard at leadership level. distressing of experiences at an to replace Bruce Mew and Linde already difficult time. I am especially pleased that we Carr who will retire at the AGM. Although it is not a situation in have been able to lead from the top Bruce and Linde have made which any organisation would wish Our financial results for the year on diversity and inclusion through enormous contributions to NHG to find themselves, I was taken with are positive, with a total surplus of the recruitment of two new board and predecessor organisations, the pragmatism and compassion £144.7 million, an improvement members from Black and minority including during the merger. They displayed by the team responsible of £46.6 million on 2020. Strong ethnic communities. Fred Angole, leave a great legacy. for moving several hundred finances are a pre-requisite of who joined us in August 2020, residents out of our Paragon estate an organisation like Notting Hill has considerable executive and We have also appointed several in west London following expert Genesis, enabling us to invest board level experience within the people from BAME backgrounds to advice that this was the only way in improvements to existing social housing sector including various of our board committees. to ensure their safety. Throughout, properties and in much-needed with the social housing regulator. Each of these committees they sought to put residents’ needs new homes for London and its additionally now include a resident Notting Hill Genesis 2 Annual report and financial statements 2020 - 2021 immediate surroundings. I am grateful for the support of the many people I meet as part Our financial strength is in large of my work as Chair of Notting part thanks to the effective Hill Genesis, including investors, leadership of our Chief Financial shareholders and resident Officer, Paul Phillips, who recently representatives. But I want to announced plans to step down. end with particular thanks to Paul has led the finance team the organisation’s employees. at Notting Hill Genesis since its Their compassion, resilience and creation in April 2018 and from willingness to adapt has been truly 2004 as Finance Director for one impressive, especially in the face of our predecessor organisations, of a good deal of uncertainty and Notting Hill Housing. On behalf personal difficulties for many, due of the board and the whole to illness and sometimes death organisation, I thank Paul for among family and friends, going his long service and dedication on to furlough or juggling work and wish him well for the future. with home-schooling. My heartfelt We intend to announce Paul’s thanks to you all. successor soon with the role attracting excellent candidates. Ian Ellis Chair Ratcliffe Cross Street Tower Hamlets Notting Hill Genesis Annual report and financial statements 2020 - 2021 Strategic report Governance Financial statements 3 Chief Executive’s introduction Our strategic report reviews some of the work we’ve undertaken in 2020/21 against four of our five core objectives, which focus on residents, their homes, new homes and our people. The fifth objective – financial strength – is covered in the Chief Financial Officer's report. Those five priorities come from colleagues across the business have our new corporate strategy, done incredible work to adapt our published in January 2021, and services and keep them running. are supported by five further enabling themes which cut across At the same time, we improved them all. Environmental, social diversity and inclusion across our and governance (ESG) issues are organisation and became more emotionally, and doing whatever covered by one enabling theme representative of the communities we can to help residents get back and you can read more about our we serve. Building safety has been on their feet is crucial. work in those areas in our ESG another focus this year as we continue with our comprehensive The last year has shown that we Kate Davies report, produced as a companion Chief Executive piece to this strategic report and programme to review properties, can adapt and embrace change financial statements. ensuring compliance with national and I am grateful to everyone who regulations and carrying out has supported us in doing that. The pandemic dominated the last remediation works where required. That progressive attitude, along financial year as we worked to keep with our earlier focus on digital vital services running and while Our resolve to keep our residents innovation, is something we are adapting to new ways of working. and their needs at the centre keen to build on as we reconnect Initially, we focused on our amazing of everything we do has been in person with colleagues, residents care and support colleagues strengthened by their and our and other partner organisations. and coming to terms with a very experiences during the pandemic. new way of working. Since then, For many, Covid-19 has caused immense difficulties, financially and Notting Hill Genesis 4 Annual report and financial statements 2020 - 2021 we do, and ensures that we make within the G15. In 2020/21 73.7% Strategic context the most of modern automated of our residents were satisfied with technologies, combined with the services that they received from personalised support from a named NHG. We published a new five-year local officer. strategy in January 2021. Our Progress against We also use the customer service core priorities build on previous priorities The pandemic reinforced the index (CSI) to understand how all strategic objectives – which are advantages of our model. Residents our residents view us. This is a the focus of this report – but we were able to self-serve for the perception measure and includes have also identified five enabling Residents majority of their day-to-day needs the views of residents who have from the safety of their own homes not had any recent contact with us. themes. These concentrate on New operating model specific areas that cut across all via our My Account online service, For our baseline survey in 2018 our the priorities and will be key to Our new operating model was to which we’ve continued to add CSI score was 65.2%. The score for delivering specific targets. fully in place from the start of new functionality throughout the 2021 was 67.5%. year. Because they have dedicated the 2020/21 financial year. It puts Greater involvement residents at the centre of what patches and can get to know their residents, our local officers were Residents are now represented also able to identify and contact on all board sub-committees those most likely to need extra following a change to governance support.