2021/22 Annual Report | The Sovini Group

Celebrating 10 years of

SHAPING OUR COMMUNITIES

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ANNUAL REPORT - CONTENTS

CONTENTS

01

WELCOME

02

WHO WE ARE

03

A DECADE OF THE SOVINI GROUP

04

WHAT WE STAND FOR

05

OUR CONTRIBUTION COUNTED

06

HOW WE APPROACH CORPORATE SOCIAL RESPONSIBILITY

07

ANNUAL HIGHLIGHTS

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ANNUAL REPORT - WELCOME

01

WELCOME A message from our CEO… In December 2021, we proudly celebrated The Sovini Group’s 10th anniversary, an achievement which feels particularly remarkable given the challenges of the past few years.

It is testament to the hard work and commitment of our colleagues, and the collaborative approach of our Group partners that we reached this milestone.

Our 10th anniversary presents an opportunity to reflect on how much we have achieved over the past decade and how far we have come, but as an organisation we never stand still, so we look ahead to the future as we continue to create opportunities and change lives.

Our innovative Group model sees profits reinvested to build new homes, improve service delivery and support the communities who remain central to our business. Controlling the quality and cost of the materials used to build and maintain our properties provides stability during these unprecedented times.

As an organisation, we are committed to creating a diverse, inclusive workplace culture that every individual feels proud to be part of, and we were delighted to be recognised once again by Great Place to Work. In 2021, we were named the UK’s Best Workplace™ for the third time, and we retained the UK’s Best Place to Work for Women™ title.

I hope this year in review will provide you with an insight into the outstanding contribution the Group has made to its colleagues, customers and communities in our tenth year.

Dr Roy Williams Group Chief Executive Officer

Our people are at the heart of everything we do. We remain committed to creating opportunities and changing lives for our colleagues, customers and our communities. - Roy Williams

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ANNUAL REPORT - WHO WE ARE

02 WHO

WE ARE

We provide quality construction, property and facilities services to the public, not-for-profit and private sectors.

As a thriving and growing business, we create opportunities and change the lives of our colleagues, customers and communities.

Our growing commercial activities complement and support our social and not-for-profit businesses, with profits reinvested to build new homes, improve service delivery and support the communities who remain central to our Group. We presently own, manage and maintain in excess of 13,500 homes, rising annually through an active development programme.

The Group’s activities are based predominantly in the North West, and we are a significant contributor to the employment market in the Liverpool City Region (LCR). Offering a broad range of employment opportunities, including apprenticeships, kickstart schemes and work placements, we proudly employ over 800 talented individuals.

• Pine Court Housing Association (PCHA) was established in 1986, with a mission to provide quality homes and inclusive housing services. Today, with over 500 homes across the LCR, they are committed to promoting cultural tolerance and cohesion across its diverse communities, which are made up of 56% Black, Asian and Minority Ethnic (BAME) customers.

• One Vision Housing (OVH) are an award-winning housing provider with over 13,000 high quality, affordable homes across the LCR, Cheshire and Lancashire. Through an ambitious development framework, they plan to deliver over 1,000 new homes across the North West over the next five years.

• Sovini Trade Supplies is a North West based builders’ merchants supplying quality products to repairs & maintenance and construction companies throughout the UK.

• Amianto Services provide passive fire protection services and licenced asbestos removal and disposal services across the UK.

• Sovini Property Services is a specialist maintenance provider offering a single contractor approach to repairs, maintenance, estate management and compliance needs.

• The Pride of Sefton is a community focused wide beam canal boat, operated by Sovini Charities, which provides opportunities for passengers to discover Liverpool’s rich heritage by sailing through its hidden waterways.

• Teal Scaffold Ltd operates across the North West, offering a high quality and efficient scaffolding service to all sectors and industries.

• Sovini Construction works across all building trades; from new build to refurbishment building services.

• Sovini Waste Solutions provide the full spectrum of waste management services; from skip hire and waste disposal to management reports and site consultation.

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ANNUAL REPORT - A DECADE OF THE SOVINI GROUP

03 A DECADE OF

THE SOVINI GROUP December 2021 marked the tenth anniversary of The Sovini Group, a milestone to be celebrated, particularly after the challenges of the last few years.

We remain committed to our purpose of Creating Opportunities and Changing Lives, and continue to put our colleagues, customers and communities at the heart of everything we do.

Our highlights reel showcases some of our greatest achievements over the past decade and offers an opportunity to reflect on the difference we make in our communities.

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ANNUAL REPORT - WHAT WE STAND FOR

04 WHAT WE

STAND FOR

The Group has a clear purpose and a set of values that are shared by all its companies.

Our colleagues are expected to always uphold the Groups’ values which supports our purpose to:

Our Ethos: Success through collaboration

Our Values:

Success We Will Be The Best

Authenticity We Do What We Say We Will Do

Passion We Love What We Do

Courage We Dare To Be Different

Enterprise We Never Stand Still

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ANNUAL REPORT - OUR CONTRIBUTION COUNTED

05 OUR

CONTRIBUTION COUNTED Our Group

WE REPORTED

PRE-TAX PROFITS OF £14.5M WE WELCOMED

174 NEW COLLEAGUES TO OUR AWARD-WINNING GROUP

8 BUDDING NEW APPRENTICES WORKED TOWARDS THEIR BLOSSOMING CAREER THE GROUP CONTINUES TO BUCK THE NATIONAL TREND ON

GENDER PAY, WITH A GAP OF -7.33% IN 2021/22 IN FAVOUR OF FEMALE COLLEAGUES

Our netzero carbon commitment

REDUCED OUR CARBON

FOOTPRINT BY 64%*

* Compared with baseline year 2010-11

REDUCED FUEL CONSUMPTION BY

BY 6% PER VEHICLE* * Average

THE GROUP RECYCLED

RECYCLED 100%

OF ITS CONSTRUCTION WASTE, THAT’S

5,200 TONNES

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ANNUAL REPORT - OUR CONTRIBUTION COUNTED

Our Homes

OVH INVESTED £36M IN THEIR CURRENT HOMES AND

INVESTED £28M

IN THE DEVELOPMENT OF NEW PROPERTIES

OVH GENERATED £17.43M ON EVERY £1 INVESTED IN ITS COMMUNITIES*

260 OVH HOMES STARTED ON SITE AND

251 NEW PROPERTIES

FOR AFFORDABLE RENT, RENT TO BUY AND SHARED OWNERSHIP WERE COMPLETED

PCHA GENERATED £1.6M IN SOCIAL VALUE*

96.4% OF OVH & PCHA CUSTOMERS SURVEYED WERE SATISFIED WITH REPAIRS

SOVINI CONSTRUCTION BROKE GROUND ON THEIR LARGEST DEVELOPMENT TO DATE, MORRIS MEADOWS.

THE £24.8M DEVELOPMENT IS MADE UP OF 149 HOMES

WHICH WILL BE AVAILABLE FOR AFFORDABLE RENT, RENT TO BUY AND SHARED OWNERSHIP THROUGH GROUP PARTNER, ONE VISION HOUSING

*Social value is a way of measuring the additional benefit to the wider community, over and above the service or goods delivered.

We use the housing association charitable trust (HACT) social value tool kit to independently certify the impact our services and activities have on the local community.

We also measure the impact of the community initiatives we support through our Community Development Fund via hact’s social value calculator.

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ANNUAL REPORT - HOW WE APPROACH CORPORATE SOCIAL RESPONSIBILITY

06 How We Approach

CORPORATE SOCIAL RESPONSIBILITY Our Community Development Fund The Group’s Community Development Fund supports small scale projects that will enhance the quality of life for our customers and communities.

Individuals, residents’ groups, community groups, charitable organisations and social enterprises working in our communities are all eligible to apply to the fund.

As the impacts of COVID-19 continued to bring unprecedented challenges to the individuals, families and communities, the fund provided an additional boost.

Here’s a snapshot of some of the excellent programmes we proudly backed this financial year…

New Horizons

Taking it back to grassroots

We strive to create diverse and inclusive communities for our customers, and Group partner, Pine Court Housing Association is a leading BAME association.

The Sovini Group proudly sponsored Liverpool Schools Football Association’s Primary Team, providing backing for the stars of the future.

Working in collaboration with Steve Biko Housing Association and The Women’s Organisation, Pine Court Housing Association delivered New Horizons, an employability project aimed at encouraging diversity and inclusion in workplaces across the Liverpool City Region.

A registered charity, the Schoolboys depend on sponsorship to develop the city’s brightest young footballing talent.

The project was designed to help the local BAME community get employed through empowering sessions, including one-toone employment advice, skills workshops, volunteering, and work placements.

Adopt a Buddy As recipients of the Covenant Gold Award, The Sovini Group is committed to supporting those who make huge sacrifices on our behalf, ensuring they receive the recognition and support they deserve.

In 2021/22, we supported Veteran HQ’s Adopt a Buddy initiative through Group partner One Vision Housing’s Community Development Fund.

Veterans HQ recruited and trained over a dozen veteran buddies to provide a unique holistic support service for ex-armed forces personnel, reservists and their families.

Grassroots football brings diverse groups together, improving the physical and mental health of people in the local community, as well as creating employment and personal development opportunities for all.

Dr Roy Williams, Group CEO said:

Across The Sovini Group we work with a number of local charity partners in support of our local communities. The Schoolboys have a fantastic reputation for nurturing local talent, and we are proud to be doing our bit to help bring on the next Rooney or Fowler.

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ANNUAL REPORT - ANNUAL HIGHLIGHTS

07 ANNUAL

HIGHLIGHTS Our net-zero carbon commitment

Building for the future

We are taking decisive action to tackle our carbon footprint, with our goal being to achieve net-zero emissions.

In line with The Future Buildings Standard (2021), developments commissioned by the Group will take a ‘fabric first’ approach.

Our collaborative Group approach is designed to improve the wellbeing of our customers, colleagues, clients, communities and beyond.

This approach involves maximising performance of components and materials selected during construction, aiming to reduce energy consumption, such as thermal efficiency and running costs.

To accelerate action, we’ve invested resource and funds, and will continue to do so, to deliver our net-zero vision.

We have also pledged to help our customers, colleagues, and suppliers reduce their environmental impact, acting as a thought leader by hosting seminars and sharing best practice, advice and guidance to support our partners in their vision to ‘go green’.

With a planned investment of £129.8m, we are looking to build over 1,000 new homes to an Energy Performance Certificate standard of B between 2021 and 2026.

New build homes developed by the Group will also feature environmentally efficient specifications, where possible – from low carbon heating and sustainable drainage systems to smart meters, solar panels and charging points for electric vehicles.

One Vision Housing’s Morris Meadows development in Netherton, is made up of 149 mixed tenure timber framed homes, built by Sovini Construction using structurally graded timber as a sustainable source carrying PEFC (Programme for the Endorsement of Forest Certification) UK Limited certification.

Navajo Charter Mark

Achieving customer excellence

In November 2021, we were awarded the Navajo Charter Mark by In-Trust Merseyside, supported by the LGBTIQA+ community network. The charter mark is a signifier of good practice, commitment and knowledge of the specific needs, issues and barriers facing LGBTIQA+ individuals and communities.

We successfully retained the Customer Service Excellence accreditation, thanks to our Group partners One Vision Housing, Pine Court Housing Association and Sovini Property Services.

With the support of Navajo, we will endeavour to identify and address any difficulties we face as an employer in ensuring our culture is inclusive, make sure that our services are accessible to all and raise awareness amongst colleagues of the issues within the LGBTIQA+ community.

For an organisation to be recognised as achieving Customer Service Excellence they must be successfully assessed against five criteria: Customer Insight, Culture of Organisation, Information and Access, Delivery and Timeliness and Quality of Service.

Assessors commented that; “The Sovini Group are more determined than ever to prove their quality of service through involving customers, partners and all staff to ensure quality service is provided to all.”

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ANNUAL REPORT - ANNUAL HIGHLIGHTS

An agile approach

Pathway into construction

The pandemic was the catalyst for a move to agile working for The Sovini Group and it was important that we maintained our unique workplace culture.

After a short hiatus due to the pandemic, we re-launched our successful Pathway into Construction initiative, aimed at encouraging female students to consider a career in the construction industry.

For years, Atlantic House was the heart of our business, the hub of company culture where our colleagues would collaborate and socialise, so a move to an agile working business model was always set to be challenging.

The Group’s Business Transformation team have worked tirelessly alongside the rest of the organisation to ensure the successful transition of the culture to a fully agile operating environment.

In September 2021, The Sovini Group was presented with the award for Best Flexible Working Initiative by the Chartered Institute of Personnel and Development (CIPD), after being shortlisted alongside national and global organisations including Blood Cancer UK and Standard Chartered Bank.

The judges said that The Sovini Group’s initiative made sure its “sense of community and family culture [was] maintained and even enhanced through the pandemic,” adding that it was “very authentic”.

Delivered in partnership with Elevate Education Business Partnership, seven students from across the region enrolled on the week-long programme, which saw them gain valuable work experience in the industry alongside Group partners, Sovini Trade Supplies, Sovini Property Services, Sovini Construction and Teal Scaffold.

The pathway culminated in an interview skills and CV writing workshop with the Group’s People & Learning team to support them in securing future employment.

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ANNUAL REPORT - ANNUAL HIGHLIGHTS

Creating opportunities and changing lives

How we stack up financially…

We are committed to creating opportunities and changing the lives of our colleagues, customers, and the communities in which we work.

Our turnover for 2021-22 was £84,276,000, representing an increase of more than 6% on the previous year. The commercial companies within the Group continued to increase their turnover and shareholder value, securing new external contracts and repeat business.

In 2021/22, we signed up to the Kickstart Scheme and committed to creating employment opportunities for young people at risk of longterm unemployment.

As a Group, we provided six-month work placements for six young people, who were previously claiming Universal Credit, giving them the opportunity to build the skill set, knowledge and confidence required to pursue an exciting and fulfilling career.

The Kickstart scheme is just one initiative the Group has introduced and adopted to create opportunities and change lives.

The scheme complements our efforts within the communities we work in, to support young people into employment.

- Kerry Beirne, People & Learning Director

As a result, the Group recorded a pre-tax profit of £14.5m.

Our trophy cabinet…

As a Group, 2021 - 22 was a successful year, with the companies from across the organisation being recognised for prestigious national and local awards. These awards include:

sovini.co.uk info@sovini.co.uk 03337 331 200