6 East Thames Group Limited Financial Statements
EAST THAMES GROUP LIMITED OPERATING AND FINANCIAL REVIEW Principal activities and legal status The Group is a Registered Social Landlord under the Housing Act (1996) and a registered charity under the Companies Act (1985). Its principal activities are the provision of central services to its operating subsidiaries, development of social housing and asset management. The Group and its subsidiaries work in the London boroughs of Newham, Tower Hamlets, Redbridge, Waltham Forest, Barking and Dagenham and Havering, and in Essex. All the subsidiaries are wholly owned by East Thames Housing Group. The three main operational subsidiaries are: • East Homes Limited – a Registered Social Landlord and a charitable Industrial and Provident Society that provides social housing including low-cost home ownership; • East Living Limited – a charitable Industrial and Provident Society that provides care and supported housing; • East Potential – a registered charity that manages foyers and neighbourhood regeneration programmes on behalf of the Group.
Performance, development and continuous improvement We are a major developer of new affordable housing, and are one of the Associations selected by the Housing Corporation as development partners. We are proud to have been selected by the Olympic Delivery Authority and London & Continental Railways alongside Lend Lease and First Base as the Preferred Development Partner for zones 2–7 of Stratford City – a remit which includes the Athletes’ Village. Our most recent Housing Corporation review gave us a full set of green lights. The Group Board and Group Executive receive Balanced Scorecard reports at each of their regular meetings, giving performance statistics across a range of activities undertaken by the Group, enabling them to make strategic decisions as trends emerge. The areas we monitor are regularly reviewed. Highlights for the year include: Development and marketing activity 800
There are five other subsidiaries that provide specialist and support services:
700
• East Foundation Limited – a registered charity that funds projects to help build sustainable communities;
500
• East Regen Limited – a non-charitable company that provides management and development services;
600
Units completed First tranche sales
400 300 200 100
• East Place Limited – a non-charitable company that undertakes commercial activities. Following a transfer of shares on the 8th October 2007 from East Thames Group Limited, East Place Limited (formerly East Street Limited) became a subsidiary of East Homes Limited; • East Treasury Limited – a non-charitable company that raises finance and provides treasury services; • EH Street Properties Limited – a non-charitable company acquired in March 2008 as a subsidiary of East Homes Limited. We have transferred the properties to East Homes Limited and will wind up this company in 2008-09.
0 2003/04
2004/05
2005/06
2006/07
2007/08
Completed units continue to increase year-on-year, whilst first tranche sales of shared ownership units remain broadly static.