To achieve our vision and mission, CHC established a five-year 2018-2022 Strategic Plan. This includes a three phase approach to achieve our strategic goals and targets:
Phase 1 – Stabilise. Key activities: Form new leadership team, adopt flatter organisation structure, tighter focus on growing impact for tenants, and materially reduce operating costs. Status: Now complete
Phase 2 – Transform. Key activities: Align operating model with new strategy , drive operational excellence, rationalise development program and secure government support. Status: Now complete with exception being securing ACT Government support to a debt restructure.
Phase 3 – Grow. Key activities: Drive sound commercial outcomes from development and our other commercial activities; leverage partnerships to gain expertise, access to new sites and reduce risk; implement fee-for-service and head lease models for management of third party owned homes; and, actively engage Governmnet to secure access to suitable development sites Status: Underway within constraint of failure to yet secure ACT Government support to a debt restructure.
Our business activity focuses on achieving the following strategic goals and associated targets.
- Financially sustainable business model– achieve positive underlying net surplus and cash flow by 2020;
- Outstanding tenant experience – top quartile tenant satisfaction; and
- Increased impact – 2000 tenants by 2022 in appropriate, safe and secure homes, with $30m direct rental subsidy to tenants by 2022.
FY19 Performance results
Key performance results against the strategic goals and targets is as follows:
- Financially sustainable business model
• Positive underlying net surplus and cash flow delivered earlier than expected
• 9% growth in underlying EBITDA to $3.6m.
• Enablers include cost reduction and effective cost control measures, and a focus on operational excellence, resulting in a 19% reduction year-on-year in administrative and employee expenses, and 30% reduction over two years.
- Outstanding tenant experience
• Maintenance of top quartile tenant satisfaction.
- Increased impact
• 8% increase in affordable tenancies under management to 487, corresponding to over 1,300 residents.
• Enablers include successful launch of HomeGround Real Estate Canberra, which continues to grow a portfolio of social and affordable tenancies under management, as well as the development and hold of two new affordable rental homes.
• Also delivered 43 new affordable homes for sale at Moncrieff and Throsby, providing a home ownership opportunity to lower income Canberra household including over ten former CHC tenant households.