Group Financial Statements 2012 - Riverside

A fitter leaner Riverside
Achieve better value for money and increase
commercial income by finding more savings on the
Group’s main activities; using IT more effectively,
investing in systems to help manage contact with
customers and improve access to performance
information at all levels; and generating extra income
by developing new commercial opportunities.
Value for money
Riverside has long been committed to adopting a
comprehensive approach to managing its resources
to provide cost effective, quality services and homes
that meet tenants’ and potential tenants’ needs.
Uncertain economic conditions are now putting
increasing pressure on all businesses to operate ever
more effectively to maintain a high quality service.
This is particularly the case for not for profit
businesses, and this has been recognised in the
increased emphasis on VFM and efficiency written
into the new regulatory framework. VFM is now
classified as an economic standard, with a broader
definition encompassing business strategy as well
as operational performance.
The achievement of VFM is defined by reference to
customer priorities, which Riverside aims to meet
with an optimum balance of economy, efficiency and
effectiveness. In the coming year, a strategic appraisal
of alternative options for the achievement of business
objectives will be carried out to add extra value to the
corporate planning cycle.
Areas reviewed this year which have enabled us to
achieve economies of scale and improve the efficiency
of our processes include the acquisition of Evolve
Facility Services Ltd which provides responsive repairs
in the North West. This will deliver substantial VAT
savings to the Group. Riverside has also extended
its cost effective repairs partnering arrangements,
awarding a five year contract to a maintenance
specialist in the Midlands. The integration of Irvine HA
into the Group has allowed more efficient provision of
locally based functions through centralisation, whilst
review of the cost of central services has continued
with a restructure of the development function.
Financial performance in the period
The detailed results of the year are set out in the Group
Income and Expenditure Account on page 24 and the
notes to the accounts on pages 31 to 83. The following
table provides a summary of the Group’s results:
For the year ended 31 March 2012 2011
£m £m
Group turnover 271 257
Operating surplus 40 43
Surplus on sale of property 6 7
Exceptional items 11 —
Net interest payable (35) (32)
Surplus for the year 22 18
Interest cover 2.0 1.9
At the operational level, VFM will continue to be
dealt with as part of service review and improvement
processes, with outcomes built into existing business
management practice, integrating benchmarking, cost
analysis/reduction and performance improvement.
The new regulatory requirement to produce a robust
self assessment will summarise the many facets of
VFM adopted by Riverside.
600
The Group has seen the completion
of over 600 affordable homes during
2011/12.
80%
80% of tenants are satisfied with the
condition of their property compared
to 71% in 2007.
11