Choice Annual Report 2025 flipbook - Flipbook - Page 22
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Choice Annual Report
Our Strategic Approach to Value for Money
2024/25
At Choice we believe that a focus on
VFM leads to improved outcomes for our
customers and our stakeholders, and that
it generates savings on resources which
can either be taken as short-term gains
or recycled back into the organisation as
additional longer-term investment. We have
embedded this concept into the organisation
through our Strategic Plan 2024-2027, and in
particular we aim to:
1.
Maintain the affordability of our
housing provision;
2. Increase the return on investment,
economic and social;
3. Improve the core efficiencies relative
to others, particularly in relation to
repairs and maintenance; and
4. Deliver best value in the delivery
and funding of the social housing
development programme.
Our VFM strategy has the following aims:
• Setting VFM targets which become
the focus for enhancing delivery;
• Establishing management systems and
structures aimed at promoting VFM; and
• Establishing a VFM culture at all levels of
the organisation.
Our strategy set outs a number of VFMrelated targets, encompassing:
• Seeking to improve performance in
relation to our CPC cashflow;
• Improvements across our key
performance indicators;
• To maintain, and where possible improve,
current position relative to national
peer group median values on the
Sector Scorecard;
• Focusing on the benefits derived from
our assets.
We aimed to achieve these targets while
maintaining average rents at affordable
levels.
Progress Made to Date
In quantitative terms the table below shows
progress against a number of the key
Sector Scorecard metrics, with performance
measured:
• Relative to our previous performance
(FY18 v FY24); and
• Our performance in FY24 against a
sample of peer organisations.
Metric
Choice
FY18
Choice
FY23
National
Median
FY23
Self Assessment of
Performance
Operating margin (social
housing lettings)
22.40%
27.48%
17.30%
Improving
Interest cover - EBITDA (MRI)
-4.14%
135.60%
123.30%
Improving
Units developed (as a %
of units owned)
3.15%
2.00%
1.00%
Reducing, but in line with
business plan
Gearing
23.91%
29.21%
37.50%
Increasing, but in line with
business plan
Reinvestment %
6.59%
9.84%
9.82%
Improving
Investment in
community activities
£34,550
£900,708
No data
Improving
Headline social housing
CPU
£3,957
£4,135
£4,970
Improving (taking inflation
into account)
Return on capital employed
(ROCE)
1.70%
2.35%
2.58%
Improving
Performance
v National
Median
No data
Above Median
Below Median
