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January 2013

ICENI HOMES LIMITED

BUSINESS PLAN

January 2013 – December 2017

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ICENI HOMES LIMITED BUSINESS PLAN - JANUARY 2013 to DECEMBER 2017

Page Numbers to be amended on final version Contents 1 Introduction 4 2 Aims and Objectives 5 3 Company information 7

Company Registration Number

Registered Address

Auditor

Bank

Solicitor 4 Organisational Details 8

Board Composition

Staffing

Location 5 Equality & Diversity 9 6 Contract Operational Arrangements 10 7 5-Year Development and Financial Plans 11 8 Key Business Targets 12

Appendices:

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A SWOT Analysis 17 B Board Membership 19 C Staff Structure 20 D Sponsoring Association Profiles 21

Colne Housing Society

Hundred Houses Society

Suffolk Housing E Iceni Homes Finance Plan 2013-2017 24

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1 Introduction

Iceni Homes Limited is incorporated as a company limited by shares. The company is wholly and equally owned by its three sponsoring Housing Associations – Hundred Houses Society based in Cambridge, Colne Housing Society based in Colchester and Suffolk Housing based in Bury St Edmunds. Iceni Homes Ltd became fully operational on 1st July 2004. The formation of Iceni Homes as a Joint Venture Development Company has enabled its sponsoring associations to pool their resources and create a special purpose company with the necessary skills, experience and capacity to develop new homes on their behalf that will meet their Business Plan aspirations. Iceni Homes operate across the geographical areas of Southern Norfolk, Cambridgeshire, Suffolk and Essex (North of Chelmsford) and has completed over 1700 dwellings since its formation. It aims to provide approximately 250 dwellings per annum on behalf of its sponsoring associations. Key Communities During 2006 Iceni and its three sponsoring associations became partners within Key Communities which is led by BPHA, a Homes and Communities Agency (HCA) development partner. This arrangement allows Iceni to continue to provide its sponsoring associations with development services and the associations to attract Social Housing Grant for new development work. Key Communities is a development partnership of 7 independent RPs who operate across the East of England. In response to the National Affordable Housing Programme 2008-2011, Key Communities submitted initial bids totalling £41.5 million which would enable 1,385 homes to be constructed for either rent or shared ownership (Homebuy). Of these totals, Iceni contributed over £4.4million worth of bids which provided 95 additional homes. A new bidding process was introduced in 2008 by the HCA (the Continuous Market Engagement process) which Iceni’s RP partners took advantage of and received grants for a total of 286 dwellings. In addition we were also successful in seeking grants from Local Authorities for a number of these dwellings. The outcome of these bids together with the existing allocation for 2008 resulted in Iceni’s partner RP’s providing over 380 new homes through the National Affordable Housing Programme 2008-2011.

As part of the Affordable Housing Programme 2011-15 Iceni submitted bids to the HCA on behalf of its sponsoring Associations for a total of 435 additional homes. These bids were all successful and, together with previously HCA supported schemes, will see Iceni developing approximately 1,000 new homes over the life of the 4 year Programme (2011-15) at a total cost of £123 million.

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2 Aims and Objectives

Iceni Homes Limited has been established as a joint venture vehicle through which the sponsoring associations can:-

Use the financial strength of the joint venture partners to sustain and enhance the varied development programmes in established areas.

Maintain and if appropriate develop our relationship/commitment to the Key Communities Partnership.

Consider appropriate business opportunities by working with other RPs/ALMOs, Local Authorities and other organisations to ensure Iceni’s sustainable long-term future.

Market the strength of the partners to national and regional house builders, developers and other potential partners resulting in expansion to new areas of operation and a wider range of opportunities.

Achieve a critical mass of development work resulting in, amongst other things, more economic procurement costs.

Be at the forefront of the Egan and Sustainability agendas by ensuring delivery of high quality, sustainable homes, using where appropriate off-site manufacture techniques (Modern Methods of Construction) and the use of new technologies to meet the Code for Sustainable Homes standards where appropriate.

Strengthen, develop and maintain close links with local authorities both on an individual basis and through sub regional/countywide working across Iceni’s operational areas.

Maximise the partners’ existing advantages as locally based associations with close contact with local agencies, to provide a real stake in their communities

Build on specialisms such as rural, supported housing and Empty Homes

Increase our operational activity within the Local Authority areas in the counties of Cambridgeshire, Norfolk, Suffolk and North Essex where we are currently not working.

Achieve savings through tax efficiency.

Maximise grant funding and other financial contributions.

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The Company will be commissioned to find, bid for, and manage, development related new business opportunities and construction works projects on behalf of the sponsoring associations, which may include:

Affordable general family homes for rent;

Rural housing;

Supported housing;

Regeneration projects;

Section 106 schemes;

Shared ownership (homebuy);

Shared Equity;

Market rent;

Housing for market sale;

Intermediate rent

Acquisition and works plus conversion of existing dwellings/buildings

Empty Homes

Major refurbishment schemes

Iceni Homes Limited aims to offer these services to other social housing providers including Local Authorities, as development or management agent or as part of the Key Communities Partnership or by offering these providers the opportunity to become members of Iceni Homes. In addition Iceni Homes will consider offering similar services to private landlords, contractors and developers operating within the private sector and in addition project management services to other organisations e.g. parish councils. Iceni has only been in existence for some 7.5 years but it has already made significant progress in achieving the objective of being recognised as a key partner with many local authorities and develops across Cambridgeshire, Southern Norfolk, Suffolk and North Essex.

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3 Company Information

Company Number: 05075281

Registered Office: Unit 13 Forbes Business Centre Kempson Way

Bury St Edmunds Suffolk IP32 7AR

Auditor: Bird Luckin

Bank: Barclays Bank PLC

Mid Corporate Banking PO Box 216 Brightwell Court Martlesham Heath Ipswich IP5 3PW Solicitors: General Matters Birketts 11-13 Princes Street Norwich NR3 1AZ (Property development) Iceni uses various solicitors based in Cambridgeshire, Suffolk, Norfolk and Essex.

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4 Organisational Details

Board Composition The Board of Iceni Homes Limited is made up of the Chief Executive and a nominated representative of the Board of Management of each of the sponsoring associations, together with Iceni Homes Limited’s Managing Director. The Chairman is selected from the Board representatives of the sponsoring associations, on an annual basis. Appendix B gives further details of Board membership. Staffing The Managing Director, Regional Directors (2), Office Manager/PA(1), Project Managers (3), Development Officer (1) and Administration Officers – part time (2) are directly employed by Iceni Homes Limited. Financial, IT and general administrative services are provided by Colne Housing Society and the cost recharged on a time-charge basis. Appendix D gives further details of the staff structure. Location

We believe it is important for strategic and operational reasons that we have a presence locally and therefore we will continue to operate from our offices in Bury St Edmunds, Cambridge and Colchester. Iceni Homes Limited’s headquarters operate from self contained offices in Bury St Edmunds where the Managing Director, 1 Regional Director, 1 Project Manager and the PA/Administrator are based. The other Regional Director works from Colne Housing Society’s Colchester office, together with 1 Project Manager, 1 Development Officer and 1 part time Administration Officer. The Regional Director based in Bury also manages the Cambridge office where 1 other Project Manager and 1 part time Administration Officer are based.

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5 Equality and Diversity

Iceni Homes Limited values diversity and is committed to equal opportunities in employment and housing. The Company will not unlawfully discriminate, for example on the basis of race, nationality, colour, gender, religion or belief, sexual orientation, disability or age. In furtherance of this objective, all consultants, contractors and clients of Iceni Homes Limited will also be required to have, and show commitment to, an equality and diversity policy.

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6 Contract Operational Arrangements

Each of the sponsoring associations has entered into a service level agreement with Iceni Homes Limited, detailing the staff, administrative and support services including office accommodation they will be providing. Iceni Homes Limited will act as main contractor for the sponsoring associations on new build and refurbishment work. It will in turn sub-contract the work to a contractor and commission professional consultants as appropriate as detailed in the Development Framework Agreement. Iceni Homes Limited will also act as development agent for its sponsors in seeking out and delivering all development related new business opportunities, charging a fee for these services.

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7 Five Year Development and Financial Plans – 2013 to 2017

Background Iceni Homes Ltd became fully operational from 1st July 2004 at which time it took over the management of the development programmes of the sponsoring associations charging an agreed fee for its services.

1. Introduction 1.1 Over the past six years Iceni has generated profits in excess of £950k and paid some £900k in Gift Aid. 1.2 The fee income for 2012 generated a gross margin of 4.6%?, which was a mixture of design and build contracts at 5%, off the shelf purchases at 4%, and other specialist schemes at negotiated rates. 2. Future Development 2.1 The 2013-2017 year forecast for future years has been based on an average fee income of 4.5% or 4.6% for 2014. (See attached Finance Plan). 2.2 The figures are based on a programme which includes schemes on site and schemes with allocations from the bid round 2011-2015 2.3 No income has been assumed from third parties. 3. Overheads 3.1 Overheads are assumed at the same rate as 2012 plus inflation at 2.5% for the remaining years. 3.2 Other than inflation there are no contingencies for increases in existing costs other than agreed budgets for specialist activities e.g. the commissioning of consultants to assist us in assessing the feasibility of Iceni becoming a Development Company developing Market Sale Homes.

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Key Business Targets January 2013 – December 2017

Objective Target Date

1 To review systems for ensuring, where appropriate, compliance with HCA /BPHA/our sponsoring Associations systems/requirements.

To have supported Iceni’s sponsoring RPs to ensure they maximise the development opportunities that arise from the Affordable Housing Programme 2011-2015

To ensure through BPHA quarterly performance reports are produced (subject to HCA agreeing targets)

December 2013 January 2013 April 2013 July 2013 October 2013

2 To ensure Iceni Homes Limited sponsoring associations’ development programmes are achieved and to a high standard.

Complete at least 95% of schemes in accordance with agreed HCA Programme timetables. Overall programme for the Year:

Start on Sites: Colne 123 HHS 47 SHS 98 Total 268

December 2013

December 2013

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Completions: Colne 42 HHS 59 SHS 39 Total 140

December 2013

3 To achieve the development aspirations of Iceni’s sponsoring RPs as identified in their Business Plans by seeking new business opportunities as appropriate.

To have sufficient schemes with Part II or Part III’s signed or where schemes have been agreed in principle but not included in the targets in Objective 2 above to meet our sponsoring RPs’ Business Plan aspirations and their HCA Programme for 2014: Colne 75 HHS 29 SHS 85 Total 189

December 2014

4 To maximise the profile of Iceni Homes Limited through positive PR and marketing.

Attempt to have at least 1 scheme per year as “Development of the Week” in Inside Housing.

To have issued at least one press release for each scheme under construction.

To develop an Iceni Marketing Strategy.

December 2013 December 2013

June 2013

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5 To develop and maintain close working arrangements with BPHA and other Key Communities’ Partners.

In liaison with BPHA ensure the Key Communities Practitioner Group meets at least 3 times a year.

Ensure we deliver the HCA Programme in accordance with the agreed HCA Contract including all appropriate returns being made.

December 2013

December 2013

6 To manage the budget effectively to ensure Iceni remains viable over the short/medium and long term.

Ensure expenditure does not exceed the approved budget and ensure the predicted surplus of £121k is achieved

December 2013

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To ensure Iceni Homes and our sponsoring RPs remain competitive.

Gather market intelligence from Local Authorities, Consultants, Developers, Key Communities Partners, other RPs and other organisations to ensure we remain competitive when bidding for S.106 schemes but at the same time offering the minimum necessary to secure the scheme.

To ensure we submit competitive quotations when invited to submit proposals to provide Development Services for other RPs, Local Authorities etc.

December 2013

December 2013

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8 To strengthen Iceni’s position by seeking new business opportunities.

When the opportunity arises offer to provide Development Services to other RPs. (NB: this may eventually lead to full membership of Iceni).

Investigate the benefits/added value of Iceni gaining ISO or similar accreditation. Promote the services Iceni can offer to our LA partners who wish to develop in their own right

Promote Iceni as the preferred partner for delivering the HCA’s Empty Homes initiative across our operational area.

In conjunction with our partner HAs, investigate the feasibility of Iceni becoming a Development company developing schemes for market sale/market rent by researching how other HAs have developed such schemes and appoint appropriate Consultants to advise us on the legal and financial requirements, and market research/intelligence.

Promote the services Iceni can offer to non-housing organisations e.g. parish councils etc. by engaging with the appropriate Rural Community Council.

December 2013 July 2013 December 2013 December 2013 June 2013 (interim report) December 2013 (final report) December 2013

9 To ensure Iceni remains a strong and successful organisation.

Agree the process, timetable etc. for the recruitment of the new MD of Iceni Homes in early 2013.

March 2013

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10 To support our sponsoring RPs in finding new ways to increase their existing capacity to build more affordable new homes.

In conjunction with our sponsoring Associations, investigate new funding initiatives to increase their capacity to build new homes.

December 2013

Other Priorities 1. Advise our RP sponsors on the HCA’s requirement that all RP investment partners must deliver apprenticeships through working with developer partners, contractors etc. or any other requirements as a condition of funding as and when details become available. 2. Staff Training and Development: to ensure we provide staff training and development that meets the needs of Iceni and its staff. 3. Organisational Development: to monitor Iceni’s effectiveness to ensure we continue to face future challenges effectively.

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APPENDIX A

SWOT Analysis

STRENGTHS

Locally based staff resulting in strong established contacts with Local Authorities/Sub Regions

Good cross regional representation

Reputation for developing quality homes

Experience of providing a wide variety of housing tenures

Experience of developing a wide variety of development types

Experience of building and managing wide variety of supported housing schemes

Established development partnership arrangements with developers

Partnership status with Homes and Communities Agency (HCA) through Key Communities

Knowledgeable, experienced, focussed and committed staff

Strong track record OPPORTUNITIES

Providing new tenures for partners

Partnerships with other, like-minded independent developing associations

Management agency work from smaller RPs and housing agencies – ALMOs, local housing companies, community land trusts and Local Authorities

Working in areas of housing need

Potential growth for non-grant funded low cost housing

WEAKNESSES

Dispersed staff – potential communication issues

Partnership arrangement reliant on ongoing commitment by sponsoring associations

Withdrawal of a sponsoring association would lead to loss of development programme and income

Associations each need to meet regulatory requirements for funding individually

Reliance on third party to maintain partner status – Key Communities

Potential lack of funding through our sponsoring RPs/HCA (grants)

Over reliance on Section 106 schemes THREATS

HCA now advancing development funds to speculative house builders (former potential partners becoming increased competition) and Local Authorities

Lack of capacity of sponsoring RPs to provide a big enough programme

Link to worsening changes in housing market conditions/funding

Availability/cost of new funding for our RSL partners

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through Section 106 agreements

Limited Company able to undertake wider variety of work than charitable HAs

Profit made by Iceni Homes Limited used to subsidise sponsoring association development initiatives

Operates across Homes and Communities Agency (HCA) priority areas e.g. growth areas and growth points

A number of our RSL competitors have either reduced their programmes or ceased developing as a result of the funding crisis

New business opportunities for Iceni – Local Authorities, other RPs etc.

Greater freedom to develop without grant due to changes in rent regime (affordable rent)

Potential to offer new services for our partner RPs e.g. PSL services

Potential to offer Project Management Services to other organisations wishing to develop non-housing schemes e.g. parish councils.

Availability of grant funding in the medium/long term due to cuts in public spending

Impact of new funding regime on the size of our RPs’ Development Programmes and therefore Iceni’s viability

Uncertainty re: funding post 2015 - HCA Contract and General Election (links to others above)

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APPENDIX B

Board Membership

1. Ian Kidman Chairman Hundred Houses Society Board Representative

2. Michael Goodson Managing Director & Company Secretary 3. Mark Powell Davies Colne Housing Society Chief Executive

4. Chris Jackson Hundred Houses Society Chief Executive

5. Carol Wilkinson Colne Housing Society Representative 6. Ian Winslet Suffolk Housing Chief Executive

7. Ian Tippett Suffolk Housing Representative

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ICENI HOMES - STAFF STRUCTURE - 2012

Managing DirectorMike Goodson

Based in Bury St Edmunds

Regional DirectorPhil Murton

Based in Cambridge & Bury St Edmunds

Project ManagerNathan Cole

Based in Bury St Edmunds

Office Manager/PADeborah Croll

Based in Bury St Edmunds

Regional DirectorStephen Heywood

Based in Colchester

Project ManagerSamantha MoorBased in Cambridge

Project ManagerRobert Frost

Based in Colchester

Development OfficerDebbie Blacow

Based in Colchester

Administration Officer P/TAmy Saunders

Based in Colchester

Administration OfficerHeather MacBeth-Hornett

Based in Cambridge

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APPENDIX D

Sponsoring Association Profiles

Colne Colne is a forward thinking, community based, charitable housing association, owning or managing some 3,000 homes mainly situated in North Essex. We aim to provide an excellent service to our residents and make a positive difference to the neighbourhoods in which we work. Included within our stock are seven sheltered housing and one very sheltered housing schemes and nearly 150 bed spaces for vulnerable clients. The majority of the latter are managed on our behalf by specialist agencies but we provide direct management support to tenants with learning difficulties and to young families. Colne acts as Corporate Trustee to a number of almshouses, provides leasehold management services to the private sector and housing, supported housing, payroll and financial services to other organisations. We operate private sector leasing and empty homes schemes which offer accommodation to homeless people who would otherwise be in bed and breakfast accommodation, and bring empty homes back into use. Through our partnership with Iceni homes, we developed more than 250 new homes in 2011/12, and have plans to deliver a further 250 over the coming three years.

Hundred Houses Society

Hundred Houses Society is a charitable housing association based in Cambridge with more than 1,150 properties

in ownership and management, in Cambridge and the surrounding area. Its mission is to provide high quality and

sustainable housing solutions, wider life choices and opportunities for all our customers and communities.

The Society was established in 1933 and has undertaken major regeneration and modernisation of its earliest estates, with over £10

million invested in existing stock and redevelopment of some of the oldest houses. It also pioneered the use of planning agreements

under the Town and Country Planning Acts to provide affordable homes on private for sale developments by volume house builders and

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has developments in central Cambridge, Ely and March built under Section 106 planning agreements. It was the first housing

association to build on a greenfield site outside the village development envelope at Landbeach, Cambridgeshire and has since gone on

to develop further affordable housing for local people in the villages such as Linton, Sutton, Bourn and Hardwick situated around the

Cambridge City urban area.

The Society has a strong asset base and operates in the fastest growing sub-region in the UK. It is a founder member of the Industrial

and Provident Society, Cambridge Partnerships Limited set up to provide all of the affordable housing in the 3 strategic areas in

Cambridgeshire at Addenbrookes, north-west Cambridge and Northstowe. With its good reputation and commitment to expand its

housing stock to meet pressing housing needs, it is in an excellent shape to further strengthen its position as a leading housing provider

in Cambridgeshire, retaining its independence and continuing to offer a personal and responsive service to the local community. It holds

the Customer Service Excellence Award and is recognised as a leading Investor in People, Bronze Award.

Suffolk Housing Based in Bury St Edmunds, we at Suffolk Housing (SHS) consistently aim, as defined in our mission, “To provide exceptional homes and services with a local, friendly focus”. Owning and managing over 2,000 homes, we place an emphasis on our adopted values of knowing our business and valuing our relationships in order to maximise the positive impact we have on the lives and aspirations of our tenants. As a local, award winning employer, we also invest in our staff and their welfare and through our apprentice programme particularly aim to support younger Suffolk people starting out in their careers. Our commercial lettings business “Linnet” owns and manages over 200 private sector homes. Through its business activity we generate income to support a development programme of new affordable homes for local people in the towns and villages of Suffolk.

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Colne Digby House Riverside Office Centre Causton Road Colchester CO1 1RJ Telephone: 01206 244700 Chairman: Tim Young Chief Executive: Mark Powell Davies Hundred Houses Society 51 Scotland Road Cambridge CB4 1QW Telephone: 01223 315036 Chairman: Ian Kidman Chief Executive: Chris Jackson Suffolk Housing Old Mission House St Botolph’s Lane Bury St Edmunds Suffolk IP33 2AZ Telephone: 01284 767224 Chairman: Richard Carter Chief Executive: Ian Winslet

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ICENI HOMES FINANCE PLAN 2013 - 2017

Actual Actual Actual Forecast Budget Forecast Forecast Forecast Forecast

Year to Year to Year to Year to Year to Year to Year to Year to Year to

Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17

£000's £000's £000's £000's £000's £000's £000's £000's £000's

Turnover - gross 11,338 13,312 19,157 14,404 18,673 23,676 13,487 15,767 15,767

Contractor fees 10,446 12,706 18,324 13,659 17,831 22,589 12,880 15,057 15,057

Fee income 892 606 833 745 842 1,087 607 710 710

Gross Margin 7.9% 4.6% 4.3% 5.2% 4.5% 4.6% 4.5% 4.5% 4.5%

Overheads plus inflation 666 623 616 642 721 750 769 788 808

Additional costs

Operating Profit (Loss) 226 (17) 217 103 121 337 (162) (78) (98)

Interest payable/(receivable) - 1 2 - - - - - -

Pension provision 56

Profit (loss) on ordinary activities 226 (18) 159 103 121 337 (162) (78) (98)

(Before gift aid payments/tax)

Inflation (applied to overheads) 2.5%