Trident Group Strategic Plan 2017-2022
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Trident Group Strategic Plan 2017-2022
Page | 2
Trident Group - Strategic Plan 2017-2022
Contents
Trident Group - At A Glance Page | 4
Executive Introduction Page | 6
Who We Are Page | 8
Managing Our Business Page | 10
Responding To Our Environment Page | 12
Planning For The Future Page | 14
Priorities Page | 15
Business Plan Page | 20
Our Financial Strategy Page | 22
Chair’s Summary Page | 31
Page | 3
Employs over 800
people
Works with 13
Local Authorities
Supports 6,000
customers each year
Group Turnover
£33m
Supports care contracts
worth over £13.5m
Trident Group - Strategic Plan 2017-2022
Invested £36.3m to
create 341 new homes
Owns and manages in five years
3358 homes
An average of 9000
responsive repairs
carried out each year
Spending £6m over 5
years on capital repairs
An average of 1200 lets
carried out each year
Trident Group - At A Glance
Executive
Introduction
The past 5 years, since we developed our last Corporate and Business Plans,
have seen a cavalcade of changes in the external world that have had a
profound effect on the Housing and Care sectors and on our customers (see
pages 12-13).
We have seen significant regulatory changes, the introduction of austerity
measures including Welfare Reform, funding cuts for Local Authorities and
Care commissioners, rent reduction for the social housing sector and face
further uncertainty and change as a result of an impending General Election
and the exit from the European Union.
In the face of such change it can be very easy to lose sight of who you are
and why you are here; at Trident we remain clear and unchanged in our belief
that our resources are best directed at providing homes and services for
those most in need.
We have continued to provide these services and remain a financially
robust organisation, meeting the covenant requirements of all lenders and
the compliance requirements of our regulators and care commissioners.
This Strategic Plan combines our Corporate Strategy and Financial Business
Plans to set out a clear path to remaining a sustainable business whilst
keeping focus on delivering our Vision, Mission and Values (outlined on page
8), and reaffirms our commitment to working with disadvantaged
communities and individuals.
Page | 6
Trident Group - Strategic Plan 2017-2022
This continuity of focus does not mean that we are unchanged or
unchanging, and one of our key strengths has always been our ability to
respond to change. We recognise that now more than ever, to continue
delivering effective services to our customers and to secure a long, stable
future for the organisation we have to remain agile and responsive to our
changing and uncertain operating environment.
To achieve this Trident has already embarked on a journey of business
transformation, streamlining the structure of the business and re-focussing
our services. We have unified our Group Structure (as detailed on page 9) and
as an organisation we have assessed the delivery priorities that will enable us
to consolidate these changes to reaffirm Trident as a stable but agile
organisation that is fit for the long-term future.
On pages 15 to 19 we outline our priorities and the strategic goals which will
shape our work over the next five years, and pages 20 to 30 we detail the
Financial Business Plan which supports our achievement of these goals,
and gives us significant assurance that we can fund our ongoing and future
activities whilst meeting all stakeholder covenants and compliance
requirements.
The Strategic Plan is intended to be a live document which will be
embedded into everything we do; it will be used to set operational targets for
departments and individuals, and will be reviewed annually to take account of
any internal and external changes, and to give assurance that following the
Plan still allows us to deliver our mission as a sustainable business.
John Morris
Group Chief Executive
Page | 7
Who we are
About Us
Trident Group has been providing homes and care and support services to people in some of the most
disadvantaged communities in the Midlands for over 50 years. Trident owns and manages over 3,300
properties and has one of the highest proportions of supported accommodation among social housing
providers.
The Group employs more than 800 staff, works with over 150 volunteers and provides training places and
apprenticeships for many more. With an annual turnover of more than £32m and assets close to £92m, the
Group is also a member of one of the country’s development partnerships, Matrix.
VISION MISSION
To be a beacon of To be at the forefro
hope to of delivering integra
disadvantaged Housing and Care a
communities and Support Services
individuals
MISSION
MISSION VALUES
VALUESTrident Reach is a
Trident Group delivers
on
n ofof ToTobe
beatatthe homes, servicesPeople-Centred
theforefront
forefront and registered care and
People-Centred
ofofdelivering innovation to over
deliveringintegrated
integrated support charity
Financially
FinanciallyRobust
Robust
6,000 people in providing services
ed
d Housingand
Housing andCare
Care and
and Building
Building
3,358 homes in some Sustainability
Sustainability
people within the
and
nd SupportServices
Support Services of the most Midlands. These
Furthering
FurtheringSocial
SocialJustice
Justice
disadvantaged services include
communities in the homeless, mental hea
Midlands. young people, olde
people, BME group
iversPage
elivers | 8
Trident
TridentReach
Reachisisaa Trident
TridentStar
Staris
isthe
and the
domestic violen
Trident Group - Strategic Plan 2017-2022
Governance Arrangements
Trident Group is led by a highly-skilled professional Supporting the Common Board are two
Board who are committed to driving the organisation committees: Remuneration and Nomination
to achieve its strategic goals. A significant amount Committee and the Audit and Assurance
of work has been undertaken to ensure we have the Committee, as well as an experienced Executive
correct governance structure for our organisation, Team. The Executive consists of the Group Chief
and that the board skills meet the needs of both Executive, Group Finance Director, Director of
current areas of business and future business People and Performance and the Director of Housing
development. and Social Care; they bring with them a wealth of
experience from the private, public and third sectors.
We commissioned an independent Governance
Structure Review in 2015. Following the process To test and safeguard the strength of our governance
we simplified the existing group structure, where we have annual independent governance
we existed as 5 subsidiaries and each was run by a assessments. These include a thorough board skills
separate board in addition to an overall Group Board, audit and testing of our succession and recruitment
to a Common Board of between 10 to 12 members plans.
(including the Group Chief Executive and a Senior
Independent Director) governing one housing We operate in accordance with the National
association, one charity and one reinvigorated Housing Federation (NHF) code of Governance and
commercial arm. Streamlining governance gives us will review our choice annually to confirm that we are
greater oversight of the whole organisation as well as operating to the most appropriate standard for our
greater clarity of responsibility and accountability. organisation.
GROUP REACH STAR
Trident Group delivers Trident Reach is a Trident Star is the
homes, services and registered care and Group’s commercial
innovation to over support charity providing body, which will play
6,000 people in services to people within a growing role in
3,358 homes in some the Midlands. supporting further
of the most These services include increase in the Group’s
disadvantaged homeless, learning surplus.
communities in the disabilities, mental
Midlands. health, young people,
older people, BME
groups and domestic
violence.
Page | 9
Managing our
business
Assurance And Risk Management Value For Money
Trident’s approach to risk is to identify, assess, Trident Group has adopted the mantra ‘Every Pound
manage and mitigate the negative impact of risk, Counts’ to embed into the delivery of all our services
rather than to seek to eliminate or avoid risks our approach to Value for Money (VFM).
altogether, as this could ultimately inhibit growth and
innovation and prevent us delivering our Strategic Many of our residents and customers have complex
Plan. needs and vulnerabilities (as evidenced through our
research work with the charitable think-tank, Human
We implement a ‘whole organisation’ and City Institute) and this inevitably requires additional
continuous improvement approach to risk; our investment in services.
appetite and direction has been settled through
open managed debate by the Group Board, Therefore our aim is not to be the cheapest when
the Executive and Senior Management Team, and compared with our peers, but to balance value with
whilst the ultimate responsibility for risk rests with the the diverse requirements of our customer-base,
Group Board, we make it clear that responsibility for aiming for our costs to be no more than the median
risk management sits with everyone in the when compared to our peers.
organisation.
We believe that when making an investment in our
The management of risk within Trident is a services and our people (staff and customers) we
continuous process that is linked to the Group’s should consider not just the immediate cost, but the
strategic planning annual cycle and is designed to longer term and wider impact that investment can
identify and prioritise the risks. make.
In addition to our active risk management This does not prevent us from aiming to reduce costs
processes we operate a robust system of where we can, provided we are maintaining effective
internal controls under an assurance framework set services to our customers. For this reason, over the
by our Audit and Assurance Committee. course of this Plan, we will be continuing to work to
our Cost Improvement Plan, consolidating assets and
These controls include extensive stress testing streamlining services to eliminate duplication
of our business plans, a wide ranging set of external and inefficiencies across the Group.
audits and a full programme of internal audits carried
out by our in-house Auditor and We wish to be recognised as a trusted and
by external independent review. supportive community-based provider of
quality services, maximising our social value where
possible.
Page | 10Trident Group - Strategic Plan 2017-2022
Customer Involvement Trident actively promotes all aspects of social, cultural
and diversity matters through workshops, briefings
Trident puts our customers at the centre of and training. Trident aims to not only meet their legal
everything we do; understanding and working obligations, but go much further in creating a fairer
with our customers, both in order to improve our and more equal place to live, work and visit.
services and their opportunities, is absolutely integral
to achieving our Vision and Mission. In order to ensure we deliver the best and
most relevant services for our diverse customer base,
Much of our focus on working with customers is we need to ensure we understand who they are and
around building their skills and addressing the what they need. This is why we are committing to
increasing problem of social isolation; this can be updating our customer profiling information systems
getting them to participate in craft or lifeskills and content as part of our Strategic Plan.
workshops, or attending our Breakfast Club.
We also offer volunteering and apprenticeship Our People
opportunities, and work with external partners to
provide employment based skills training. Our people are one of our greatest assets and the
recruitment, training and retention of skilled motivated
Given the operating and funding environment we staff is key to achieving our objectives.
now work in, we have had to consider carefully
how we offer effective but cost-efficient ways for To respond to changes in our operating environment
our customers to engage with us, and so we have we have started a process of transformation to a
streamlined our direct customer scrutiny moving much closer Group structure, fully integrating our
from multiple service-specific scrutiny panels, to one Care and Housing Services.
unified ‘Challenge Panel’.
Some structural changes have already been
We are also focussing on developing our digital made and during the first year of this Plan, we will be
engagement platforms to enhance two-way completing this alignment of services.
communication, and on creating further partnerships
to deliver services to our customers. To support these changes, which we recognise can
be unsettling for staff, we have and will continue to
Equality, Diversity And Inclusion be transparent and communicate with all staff and
stakeholders.
Trident is committed to ensuring equality,
diversity and inclusion is embedded in every aspect
of our work. Working in the Care and Social Housing
sectors we have a very diverse customer group and
we realise that having staff, board and committee
members, contractors and stakeholders who not
only understand this diversity but reflects it, is
essential to delivering our mission.
Page | 11Responding to
our environment
Operating Environment 2017 budget announced an additional £2 billion for
Social Care over the next 3 years.
In recent years it has often seemed that
organisations engaged in supporting the most Both of these go some way to plugging the gaps, but
vulnerable find themselves at odds with central still leaves uncertainty how the remaining gap will be
government policy, and the constant change and filled.
uncertainty around policy detail has made it difficult
to plan, respond, and fund new initiatives at just the Adding to this uncertainty of course is the
time when they are greatly needed. impending General Election in June 2017 and the
lack of detail over how our exit from the European
There is both a housing crisis and a social care Union will unfold.
crisis. There is a shortfall of affordable housing for
all groups and a lack of adequate care services for Government Austerity
the increasing number of elderly and vulnerable
individuals who rely on the social care system. Trident continues to support an extremely
vulnerable client group who, under austerity,
The Local Government Association estimates that has fared even worse than most other sections of
by 2020 there will be a gap of £5.8 billion in Local society.
Authority funding, £2.6 billion of which is in social
care. They have been subject to income restricting
measures such as bedroom tax, benefit caps,
The estimate of the housing shortfall varies widely harsher sanctions and demands placed on
according to sources, but the Government’s 2017 claimants and all the associated stresses of this
White Paper on Housing estimates that between situation.
225,000 and 275,000 additional homes need to be
built to keep up with existing and future demand. In addition, the housing sector has seen its income
and security restricted through the introduction of a
Despite these shortfalls central government has 1% rent reduction for 4 years, unfavourable
continued to cut direct funding for both these sectors Universal Credit payment arrangements and the
over the past two terms. proposed Local Housing Allowance Cap which
restricts the benefit payable on social, rented
There has been public and political negativity accommodation to levels which leave unaffordable
towards the social housing sector, and towards shortfalls, particularly for those under the age of 35.
Local Authority spending, but this has appeared to
soften in more recent months. At the same time our Local Authority partners have
come under increasing pressure and funding cuts
The most recent Autumn budget announced have meant that providers of frontline Care and
additional funding for affordable housing and some Support services are required to respond to
flexibility of tenure, whilst the Spring unprecedented levels of complex needs.
Page | 12Trident Group - Strategic Plan 2017-2022
Regulatory Framework IT And Digital Service Delivery
Regulation of both sides of our business has been There has been a major shift in recent years towards
subject to change over the past two years. digital service delivery in all sectors. Consumers
expect it and the Government is increasingly moving
Both Homes England and the Care Quality access to services online.
Commission (CQC) have produced new standards by
which we must adhere, and increased the reporting We aim to use innovation and technology to enhance
burden for organisations. delivery and outcomes that are customer focused,
that will create efficiencies, and that make better use
The regulator of social housing moved to a model of technology.
of fewer but more forensic investigations, and also
introduced a focus on Value for Money and Risk Significant investment has been made in
Management. future-proofing both our internal and external IT
systems. We have focussed on establishing a
The CQC heightened its powers of intervention, stable platform of solutions for our workforce over
including the ability to seek prosecution without prior the course of our last Business Plan including
warning, and enhancing its ability to put care complete agile working solutions to improve our
services under special measures where it is believed responsiveness to customers.
they are failing to provide adequate care.
Over the lifespan of the next Strategic Plan we
Responding to these changes and re-shaping our will deliver enhanced self-service technology for our
organisation to best meet these standards has at customers that will allow them to log and track their
times been challenging, but we have developed repairs, make payments, view online account data
close working relationships with both our regulators and manage their housing account information.
to ensure we are meeting all requirements and can We will make advanced changes to our Customer
offer robust assurance to all our stakeholders. Relationship Management (CRM) application that
supports all customer interactions with enhanced
business intelligence capabilities to improve digital
services.
Page | 13Planning for the
future
Risk And Opportunities
To ensure we respond appropriately to the changing environment for the housing and care sectors we need to
understand what the risks and opportunities are for us as an organisation.
We have carried out extensive work assessing our risks and our appetite for these risks, as well as the
opportunities change can motivate. The following gives a summary of key risks and opportunities identified
through this process.
Risks Opportunities
Welfare Reform has the potential to negatively We are a financially robust organisation, and have a
impact on our income, and our customers’ income. skilled workforce who can support those in financial
distress. We have existing relationships with money
advice providers who can partner to assist those in
need.
Cutbacks in Local Authority budgets may mean Diversification of funding sources to reduce the risk
reduced availability of funding for care contracts. opens us up to new strategic relationships, including
with new Local Authorities and Health Authorities.
Reduction in grant availability and inflexibility of tenure Innovative models of funding and delivering housing
for grant restricts ability to expand stock. development are opening up and can be explored.
Increasing complexity of customer needs and Exploring new ways of increasing commercial activity
reduction in external support available. to reinvest in additional support for customers.
Exit from the European Union stops access to New partnerships and funding arrangements
European Social Fund for projects. within the UK to support existing successful
services, including corporate sponsorship.
Merger Strategy
Trident has always been keen to ensure that it uses its resources well and seeks professional support and
capacity where it doesn’t have the expertise within the Group. Where it has the capacity and expertise, it
has investigated how to provide that support to other partners particularly around shared services and
collaborations with local partners.
Trident’s preferred method of maximising collective resources is through partnerships and strategic alliances,
but remains open to mergers with like-minded organisations where it fulfils a number of core objectives and
fits in with the principles identified by the Group which include:
Fit for Purpose - any additions align with our common objectives, Vision and Mission. Any addition to the
Group will share the Group values and will be approved by the Board.
Contribution - a merger or acquisition will only be made if it helps to improve the circumstances for Trident
beneficiaries in some way i.e. improve service delivery.
Value for Money and Risk - additions should not impact financial position or covenants negatively nor
demonstrate poor value for money.
Page | 14Trident Group - Strategic Plan 2017-2022
Priorities
The following pages set our priorities for the next five years. The strategic objectives and outcomes we have
set reflect our assessment of the current and potential impact of our operating environment, and our reflection
on how we can best position our organisation to meet the long-term future.
Our strategic objectives and the outcomes we will achieve over the period of this plan are set out under three
themes:
PEOPLE GROWTH &
SUSTAINABILITY
LE GROWTH
GROWTH && SERVICE
SERVICE
SUSTAINABILITY
SUSTAINABILITY DELIVERY
DELIVERY
Page | 15Page | 16
Trident Group - Strategic Plan 2017-2022
People
Trident aims to be an employer of choice. We want to attract
skilled and energetic people to our organisation who share our
values and will dedicate themselves to the sometimes very difficult
task of supporting and housing vulnerable individuals.
We want to understand our customers better so that we can
provide targeted services that genuinely meet their needs and their
expectations, and to enable us to advocate successfully on their
behalf. We want to be able to communicate with our customers
on their chosen platform, creating more effective and meaningful
two-way interactions.
Objectives
1. To create and retain a skilled, motivated workforce.
2. To be resident and customer-focused; be clear who our customer base is and target services
appropriately to meet their needs.
3. To be a great storyteller, an advocate and campaigner for our residents, service users and their
communities.
Outcomes
1. Customer and staff satisfaction levels achieving at least sector average by year 4 of the Plan.
2. Staff turnover no greater than 30% and workforce stability index no less than 75%.
3. Customer feedback levels show a year on year increase in number and we demonstrate change as a
direct result.
Actions
Develop a new model for capturing and monitoring Customer Experience (including storytelling) by
September 2018.
Develop a Tenant Voice panel of residents and customers who feedback directly to the Board of Directors by
September 2018.
Implement a Digitalisation Plan to enhance and develop our communications platforms through 2019/20.
Reduction of agency staff costs by 60% against 2016/17 performance by September 2018.
Develop a staff task group to explore implementation of Psychologically Informed Environments approach to
the working culture.
Continue work with Birmingham City Council to implement the City’s Homelessness Prevention Strategy.
All staff to have an identified training plan relevant to their role by December 2018.
Page | 17Service Delivery
Trident is committed to delivering effective services which represent
the best value for our customers. We aim to operate under a fully
integrated organisational model which harnesses the strengths of
all parts of our business. We aim to create a working atmosphere
that encourages communication and seamless coordination between
departments and individuals through the whole organisation so that
we can deliver the best possible service to our customers.
We recognise that the key to providing effective services is to
hold and use accurate up to date information to make strategic
and operational decisions; Trident is committed to improving our data
quality and quantity for this purpose.
Objectives
1. Deliver efficient, effective, targeted services which meet the diverse needs of our current and future
customers, whilst maximising our social impact.
2. Manage our resources effectively and efficiently to maximise our return on investment and ensure we
have the financial capacity to deliver our priorities.
3. Be recognised as a leading provider of care and support services and accommodation.
Outcomes
1. Year on year improvement in benchmarked performance (as identified in our KPI targets page 20).
2. Seamless and consistent provision of services and business processes across the Group.
3. Complete, up-to-date core profiling data for all customers and assets held on a central accessible
database.
Actions
All departments to develop their own action plan for delivery of the Strategic Plan - March 2018 plus annual
review.
Completion of independent stock condition survey and refresh of the Asset Investment Plan by December
2018.
Completion of Service Area Reviews of voids and income management (achieved in July 2017) and
implementation of recommendations through 2018/19.
Completion of large scale customer satisfaction survey and an improvement plan agreed where appropriate
by October 2018.
Work with residents and customers to develop new Service Standards across all departments within the
Group to provide absolute clarity on delivery expectations by December 2018.
Develop improved internal reporting on key business areas for all services by November 2018.
Page | 18Trident Group - Strategic Plan 2017-2022
Growth & Sustainability
Trident aspires to create steady, sustainable growth, both in terms
of property numbers and contract income. Our current Plan looks
to sustain existing income levels within our care contracts, but to
diversify our income sources and review our target client base.
This diversification will concentrate on exploring income sources that
allow us to respond to support and social investment needs we have
identified, rather than on those commissioned by statutory bodies.
We will be developing new homes at the start of this Plan but this will
be followed by a period of consolidation as we focus on the quality of
our service delivery and investment in our existing stock.
Over the course of this Plan we aim to invest in our commercial
entity, Trident Star, to enhance our ability to deliver increased social
investment and fund property development in the future. We will
also be exploring new Strategic Partnerships that bring innovative
solutions to the delivery of care and housing.
Objectives
1. Maintain and sustainably grow the business, focusing on diversification of income and reduction in
reliance on statutory funding.
2. Operate a clear sustainable model for housing and care delivery.
3. Provide consistent value for money to our stakeholders and create extra social value in all activities.
Outcomes
1. New models and partnerships for delivery of housing development and support service delivery
developed.
2. Expansion of our commercial activities under Trident Star.
3. Efficiency savings of 1% year on year achieved.
Actions
Complete our Affordable Homes Programme Development by March 2019.
Complete regeneration and small-scale development of out of use units and sites. Plan by March 2019.
Complete stock rationalisation reviews including the consolidation of office space by October 2018.
Full independent review of our treasury arrangements to be undertaken and recommendations to be
implemented by September 2018.
Relaunch Trident Star to focus our commercial delivery by 2020.
Develop a comprehensive Growth Strategy for the Group by March 2019.
Identify how services can provide opportunities for apprentices by March 2019.
Review our Value for Money Strategy including our approach to monitoring and reporting by September
2018.
Explore provision of shared services model as a source of additional income by June 2019.
Page | 19Trident Group Business Plan 2018-2023
Trident Group - Business Plan 2018-2023
Our Performance Targets
In addition to the financial targets set out in our forecast, and the Cost Improvement Plan, we set Key
Performance Indicator (KPI) targets around our business critical activities.
Our performance goals recognise the challenging customer group we work with and the influence of
external policy; we set targets that create continuous and sustainable improvement, and over the course
of time achieve upper quartile performance when compared to our benchmarked peers.
We monitor progress on KPIs throughout the year and performance is reported to Group Board and its
sub committees. In the first year of the Strategic Plan we are undertaking a complete review of our
performance monitoring and benchmarking approach to optimise the collection, collation and distribution
of performance information, so that staff and stakeholders have the best possible oversight and will be able
to drive improvement more effectively.
The following table sets out stretch performance targets for the coming five years based on our current
benchmarking.
Business Critical Actual Actual Target Target Target Target Target
KPIs 2016/17 2017/18 2017/18 2018/19 2019/20 2020/21 2021/22
Current arrears as 6.8 8.5 6.0 5.0 4.0 4.0 4.0
%age of rent and
service charge due
Rent and service 99.0 95.7 99.5 99.5 99.9 99.9 99.9
charge collected as
%age of rent due
Rent loss due to voids 3.94 4.6 2.8 2.2 1.4 1.4 1.4
as %age of rent due
Average relet days 31 40 28 24 20 20 20
Properties meeting 100 100 100 100 100 100 100
Decent Home
Standard (%)
Stock condition 0 0 20.0 40.0 20.0 20.0 20.0
surveys completed as
%age of total stock
Care contract 89.96 87.5 93.75 93.75 100 100 100
compliance (% hours)
Care contract payment 53.0 81.0 50.0 85.0 85.0 85.0 85.0
by outcomes (%)
Staff turnover - 35.0 39.0 32.0 30.0 30.0 30.0 30.0
excluding
redundancies (%)
Customers satisfied 63.4 63.4 70.0 70.0 75.0 80.0 85.0
with overall service (%)
Homes with current 100 100 100 100 100 100 100
LGSR (%)
Page | 21Our financial
strategy
Financial Viability
Trident is committed to ensuring we have sufficient financial capacity to meet all of its key objectives.
All surpluses are retained for reinvestment in the organisation, to develop housing for those in need, or to
meet our social aims, and nothing is distributed to shareholders.
We maintain a minimum cash balance whilst ensuring sufficient loan facilities are available and immediately
accessible to finance all contractual commitments. Short and long term cash projections are regularly reviewed
to assess future borrowing requirements.
Our Business Plan
The Business Plan represents the consolidated view of the three entities within the Trident Group: Trident
Housing Association, Trident Reach the People Charity and Trident Star. We refresh our Business Plan each
year and this is reflected in the following pages.
Financial And Operating Assumptions
The plan incorporates the following assumptions:
Group Assumption 2018.19 2019.20 2020.21 2021.22 2022.23 Long
Term
Base inflation - CPI 2.50 % 2.25 % 2.25 % 2.25 % 2.25 % 2.00 %
(Source: Savills Financials Business Plan Assumptions)
Retail price index - RPI 3.25 % 3.00 % 2.75 % 2.75 % 2.75 % 2.50 %
(Source: Savills Financials Business Plan Assumptions)
Rental inflation / (deflation) -0.25 % -0.25 % 1.00 % 1.00 % 1.00 % 1.00 %
(Source: Government policy / actual run rate)
LIBOR 1.00 % 1.50 % 2.00 % 2.50 % 3.00 % 4.00 %
(Source: Savills Financials Business Plan Assumptions)
Voids -3.00 % -2.80 % -2.70 % -2.60 % -2.60 % -2.60 %
(Source: Group Board Approved Targets)
Bad debts -3.60 % -3.60 % -3.50 % -3.40 % -3.40 % -3.40 %
(Source: Group Board Approved Targets)
Employment cost 1.00 % 1.00 % 1.00 % 1.00 % 1.00 % 1.00 %
(Source: Group Board Approved Targets)
Cost improvement target -1.00 % -1.00 % -0.75 % -0.50 % -0.25 % -0.25 %
(Source: Group Board Approved Targets)
Page | 22Trident Group - Business Plan 2018-2023
Property Development and Asset Investment
Our Business Plan is based only on development of properties that are fully committed and/or funded. This
includes 61 units completing our 2015 Affordable Homes Programme. This is a single site development in
Wrockwardine Wood, Shropshire catering for general needs and physically disabled residents.
Trident’s development focus following completion of this programme is on small scale developments on
existing sites, for example, derelict garage sites, as well as on investment in current out of management units
to bring these into use.
Alongside the investment in out of management units, Trident will be maintaining significant capital and
revenue investment in current properties. This will be driven by the information gathered in a comprehensive
independent stock condition survey programme undertaken in early 2018-2019.
The following table demonstrates our asset investment plans:
2018.19 2019.20 2020.21 2021.22 2022.23
£000’s £000’s £000’s £000’s £000’s
Revenue maintenance 1,548 1,568 1,591 1,619 1,651
Capital investment 1,329 1,251 1,274 1,309 1,232
NB although we have included the loss of units through the Voluntary Right to Buy in our stress testing, and
have thereby made financial allowances for the potential impact on income, since our modelling suggests the
impact is minimal, and the roll out and operating detail of the scheme is as yet uncertain we have opted to
exclude this from our current development and disposals plan.
Page | 23Business Plan Projections
Income and Expenditure 2018.19 2019.20 2020.21 2021.22 2022.23
£000’s £000’s £000’s £000’s £000’s
Income 33,675 34,170 35,053 35,970 36,908
Operating expenditure (27,862) (28,204) (28,252) (28,347) (28,794)
Operating surplus 5,813 5,966 6,801 7,623 8,114
Operating surplus % of income 17.3% 17.5% 19.4% 21.2% 22.0%
Interest cost (3,101) (3,213) (3,146) (3,124) (3,243)
Other (102) (40) (40) (40) (40)
Net surplus 2,610 2,713 3,615 4,459 4,831
Net surplus % of income 7.8% 7.9% 10.3% 12.4% 13.1%
Cashflow
Cashflow 2018.19 2019.20 2020.21 2021.22 2022.23
£000’s £000’s £000’s £000’s £000’s
Net cash flow from operating activities 7,060 7,366 7,937 8,501 9,150
Interest paid (3,091) (3,140) (3,145) (3,124) (3,242)
Development expenditure (3,180) 0 0 0 0
Grants receipts 599 0 0 0 0
Other fixed assets payments (763) (442) (452) (352) (360)
Loan repayments (3,205) (3,292) (3,351) (3,090) (10,064)
Loan draw downs 2,000 0 0 0 0
Cash flow b/f 7,180 6,600 7,092 8,081 10,016
Cash flow c/f 6,600 7,092 8,081 10,016 5,500
Cashflow for the Group demonstrates a compliant position for all stakeholders. Cash in 2022/23 reflects
growth over the five year period having committed £8 million of development expenditure.
Page | 24Trident Group - Business Plan 2018-2023
Balance Sheet
Balance Sheet 2018.19 2019.20 2020.21 2021.22 2022.23
£000’s £000’s £000’s £000’s £000’s
Fixed assets 160,092 158,247 156,678 155,270 153,707
Current assets 10,873 11,367 12,356 14,290 9,774
Creditors amount falling due less than one year (9,540) (9,729) (9,353) (21,657) (11,793)
Total Assets less current liabilities 161,425 159,885 159,681 147,903 151,688
Creditors amount falling due greater than one year 137,525 133,271 129,452 113,214 112,170
Income & Expenditure Reserve 23,734 26,448 30,063 34,523 39,352
Other 166 166 166 166 166
Total Assets less current liabilities 161,425 159,885 159,681 147,903 151,688
Page | 25Covenant Compliance Covenant Compliance Required 2018.19 2019.20 2020.21 2021.22 2022.23 Debt per unit 110% 199% 200% 217% 230% 236% Debt serviceability
Trident Group - Business Plan 2018-2023
Each area of stress testing has been reviewed to
assess the impact to the organisation, and as part
of our Risk Management Framework appropriate
remedies have been explored and applied to alleviate
the impact of the risk.
The Group Board and Executive Team have taken
additional assurance in respect of key risks such
as interest rate rises whereby Savills, our external
treasury advisors, have reviewed the level of fixed
and variable debt contained within the organisation
and advised this is an acceptable level.
The following stress testing scenarios remain a high
focus within the organisation and are actively
monitored:
Interest rate rises; whilst the plan assumes LIBOR
increases long term to 4.0% further increases
beyond this could materially impact the
sustainability of the organisation, the remedy here
would be to fix the interest rate within the debt
portfolio and accept a higher level of interest cost
however it would be consistent and therefore the
risk would have been transferred.
Supported People contract cuts within Trident
Reach; these remain a high focus due to the
nature of local authority cuts. The stress testing
parameters assume if there were cuts to
contracted income then the organisation would
need to sustain the costs for three months whilst
it sympathetically went through the required steps.
The remedy that has already been put in place is
a reserves policy which states that a required level
of reserves and cash are held within Trident Reach
to cover this set of circumstances.
Whilst the organisation is in a stage of
development then there is increased risk in
respect to material and build cost rises. Contracts
are in place with contractors via our development
partners; The Matrix Group to mitigate this impact
to the organisation, further remedies would be to
dispose of unencumbered assets in order to
accommodate the development cost rises.
Voids and bad debts continue to be actively
monitored through key performance indicators.
Steps have already been taken to mitigate
rises within this area such as a review of the
referrals policy, strengthening of tenancy
administration and a review of the income
management process.
The tables overleaf reflect the extent of the stress
testing within the Plan.
Page | 27Stress Testing Scenario Impact to
Base Inflation - CPI EBITDA MRI
Stress Testing Scenario Impact to
Retail Price Index - RPI EBITDA MRI
Stress Testing Scenario Impact to
Local Housing Allowance cap (an impact of 1.74% or £5k per week in rental income) EBITDA MRI
Stress Testing Scenario Impact to
Universal Credit - increase arrears (currently 40 increasing by 224 per year with 1,346 being total EBITDA MRI
potential recipients by 2023)
Stress Testing Scenario Impact to
Voluntary right to buy (552 units eligible out of total stock of 2,934) EBITDA MRI
Stress Testing Scenario Impact to
Benefit cap (4/5 bedroom houses which accounts for 88 units of stock and £586,352 of income EBITDA MRI
per annum)
Stress Testing Scenario Impact to
Regulated 1% income reduction continues past 2020 EBITDA MRI
Stress Testing Scenario Impact to
Rental (Deflation) EBITDA MRI
Stress Testing Scenario Impact to
LIBOR EBITDA MRI
Stress Testing Scenario Impact to
General Voids Increase EBITDA MRI
Stress Testing Scenario Impact to
General bad debts Increase - across all residents EBITDA MRI
Stress Testing Scenario Impact to
SP contract cuts - 3 month lag of employment cost EBITDA MRI
Stress Testing Scenario Impact to
Development expenditure increase EBITDA MRI
Stress Testing Scenario Impact to
Major repairs EBITDA MRI
Stress Testing Scenario Impact to
Combination of voids and bad debts EBITDA MRI
Stress Testing Scenario Impact to
Combination of voids, bad debts and LIBOR EBITDA MRI
Stress Testing Scenario Impact to
Efficiency savings not met EBITDA MRI
Stress Testing Scenario Impact to
CPI+ rental inflation not met (CPI only) EBITDA MRI
Stress Testing Scenario Impact to
Major fire to Trident House - 351 units @ £80PW EBITDA MRI
Risk Management Key:
Unacceptable level of risk exposure which requires immediate corrective action
Unacceptable level of risk exposure which requires constant active monitoring
Acceptable level of risk exposure subject to regular active monitoring measures
Acceptable level of risk subject to regular passive monitoring
Page | 28Trident Group - Business Plan 2018-2023
2018.19 £000'S 2019.20 £000'S 2020.21 £000'S 2021.22 £000'S 2022.23 £000'S
+3% +6% +9% +3% +6% +9% +3% +6% +9% +3% +6% +9% +3% +6% +9%
+3% +6% +9% +3% +6% +9% +3% +6% +9% +3% +6% +9% +3% +6% +9%
Rent reduction Rent reduction Rent reduction Rent reduction Rent reduction
Bad debt increase Bad debt increase Bad debt increase Bad debt increase Bad debt increase
Rent / cost reduction Rent / cost reduction Rent / cost reduction Rent / cost reduction Rent / cost reduction
Bad debt increase Bad debt increase Bad debt increase Bad debt increase Bad debt increase
No Impact No Impact £155k Impact to EBITDA £161k Impact to EBITDA £166k Impact to EBITDA
+3% +6% +9% +3% +6% +9% +3% +6% +9% +3% +6% +9% +3% +6% +9%
+3% +6% +9% +3% +6% +9% +3% +6% +9% +3% +6% +9% +3% +6% +9%
+3% +6% +9% +3% +6% +9% +3% +6% +9% +3% +6% +9% +3% +6% +9%
+3% +6% +9% +3% +6% +9% +3% +6% +9% +3% +6% +9% +3% +6% +9%
+3% +6% +9% +3% +6% +9% +3% +6% +9% +3% +6% +9% +3% +6% +9%
+3% +6% +9% +3% +6% +9% +3% +6% +9% +3% +6% +9% +3% +6% +9%
+3% +6% +9% +3% +6% +9% +3% +6% +9% +3% +6% +9% +3% +6% +9%
+3% +6% +9% +3% +6% +9% +3% +6% +9% +3% +6% +9% +3% +6% +9%
+3% +6% +9% +3% +6% +9% +3% +6% +9% +3% +6% +9% +3% +6% +9%
£96k Impact to EBITDA £96k Impact to EBITDA £75k Impact to EBITDA £53k Impact to EBITDA £30k Impact to EBITDA
No Impact No Impact £155k Impact to EBITDA £161k Impact to EBITDA £166k Impact to EBITDA
Full Income reduction Full Income reduction Full Income reduction Full Income reduction Full Income reduction
Cash - GROUP EBITDA - MRI
Trigger 2018.19 2019.20 2020.21 2021.22 2022.23 Trigger 2018.19 2019.20 2020.21 2021.22 2022.23
£000'S £000'S £000'S £000'S £000'S Less than 110% 110% 110% 110% 110%Remedies If any of the scenarios materialised the remedies modelled are: In severe cases the significant reduction of major repairs, across the five year plan, total suspension would add back £6,000k to cash and the EBITDA MRI covenant. Sale and lease back of over securitised property, short term releasing £14,000k into cash flow. Further aligned cost savings, including staff shrinkage to mitigate income reduction. The use of undrawn facilities to support cash flow. A shared services arrangement with a partner association delivering a potential overhead saving of £2,000k. Disposal of unencumbered assets, such as Trident Head Office for prime development space. Capital repayment holiday with major lenders adding back £2,500k per annum to cashflow. Page | 30
Trident Group - Strategic Plan 2017-2022
Chair’s
Summary
I am delighted to join Trident as we embark on a challenging new chapter.
The housing and care sectors are experiencing unprecedented levels of change and uncertainty, but
have also never been in such great demand. We are facing extreme shortages of affordable housing
provision and suitable social care to meet the needs of the population. Trident has a long history of
providing homes and services to vulnerable individuals and communities, and is determined to carry
on doing so even in the face of significant external challenges.
The key to achieving this is balancing risk with stability, and it is with this in mind that Trident have
created this Strategic Plan.
Supported Housing is seen as a risky environment, and one which many providers are turning away
from. Trident is committed to providing this much-needed resource, but will be doing so from a
considered and stable financial and organisational platform.
Trident’s strengthened Governance and Risk Management strategies will enable the Group to
constantly keep under review the impact and viability of the activities we are engaged in, to ensure
we operate a portfolio of services that are relevant and add value to the lives of others, but that
remain financially viable.
The Strategic Plan outlines a path of steady sustainable transformation and supporting this we have
a robust five year financial plan. Together this ensures we meet the needs of all of our stakeholders,
whether that be regulators, lenders, customers, employees or suppliers. On this basis I commend
the Strategic Plan.
The work we are doing now will create firm foundations for securing a long term and exciting future
for the Group, and I am looking forward to working with the rest of the Board and the Executive Team
to ensure we accomplish the strategic goals we have set for the organisation.
Andy Ballard
Chair of Group Board
Page | 31239 Holliday Street, Birmingham, B1 1SJ
Tel: 0121 633 4633 Fax: 0121 643 0260
Monday - Friday 9.00am - 4.00pm
Tel: 0121 643 6060 - out of office hours
Freephone (from BT landlines): 0800 111 4944 Mobile (reduced rate): 0300 123 1113
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