OREANDA-NEWS. April 03, 2015. Circle Anglia Ltd response to the Homes and Communities Agency review findings

After the Homes and Communities Agency (HCA) placed Circle Anglia Ltd (trading under Circle Housing) Governance rating under review on Monday 12 January 2015, it has today concluded its findings. 

The HCA has downgraded Circle Anglia Ltd Governance rating to G3 due to the management of its responsive repairs and maintenance services in parts of London.  They have re-affirmed its Viability rating as V1.

"We know that repairs is the single most important service that we offer our residents and it is our highest priority to drive our improvement plan and return our service to an acceptable standard.  We apologise unreservedly to those customers who have been affected. 

"We are disappointed with the HCA's conclusions and will continue to deliver improvements to resolve the challenges we have experienced in parts of London.    We have already taken the following actions which have resulted in improvements to our service:

·     Strengthened senior oversight and scrutiny - we have set up additional panels, consisting of both Management Board and Executive Team members, to oversee and drive specific strands of our improvement plan.

·     Recruited additional resources- we have strengthened our repairs and maintenance team with a number of experienced employees who are closely managing contractors and increasing capacity.  We have also sought independent external advice.

·     Increased capacity - we have been allocating work to additional contractors to increase capacity and carry out repair works as quickly as possible and will continue to do this.

·     Improved reporting - we have been carrying out daily validation calls to customers to check that jobs have been completed.  Improved systems and processes have been implemented.

New contractors

"In addition to this, our contingency planning has meant that since announcing the end of our responsive repairs and maintenance contract with Kier, we have now appointed two new contractors to deliver responsive repairs and maintenance services in London and the West Midlands, as this was part of the same London contract.  This move forms part of our strategy to improve repairs and maintenance, increasing capacity and delivering a quality service. 

"Mitie will provide responsive repairs and maintenance services to customers at Circle Housing Old Ford and Wates Living Space will provide them to Circle Housing Circle 33 and Circle Housing Mercian.  Appointing two different contractors in the London area - one to Circle Housing Old Ford and one to Circle Housing Circle 33 - means that we have increased capacity and resource to deliver responsive repairs and maintenance immediately, particularly when coupled with our allocation of work to additional contractors.

"Emergency and out of hours work has begun to be delivered by the new contractors from the end of March, with all on the ground repairs moving over at the end of April.  These two contractors have the capacity and resource to deliver repairs immediately and provide a better repairs and maintenance service that properly meets the needs of our customers. 

"After carrying out a full review, the HCA has re-affirmed our V1 rating for viability, which reflects our fully funded business plan and financial stability."

Circle Anglia is holding a conference call on Wednesday 8 April 2015 at 9.30am to answer any investor/analyst questions on this matter.  If you wish to join this call, please email susannah.finn@circle.org.uk or anna.moulds@circle.org.uk to be provided with dial in details.