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CIH implements new corporate plan after ‘disappointing’ £1m loss

The Chartered Institute of Housing (CIH) has admitted it is “disappointed” in its latest set of financial results, after the membership body revealed it had made a loss of just more than £1m in the 15 months to March 2018.

 

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CIH's Gavin Smart admits he is "disappointed" by the results
CIH's Gavin Smart admits he is "disappointed" by the results
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CIH admits disappointment over £1m loss for 2017/18 #UKhousing

CIH implements new corporate plan after suffering £1m loss #UKhousing

The body has agreed a corporate plan, with a number of changes set to be put in place to return it to profitability by the 2020/21 financial year. These changes include a plan to cut overhead costs by £660,000 over three years and making changes to the structure of its senior management team.

In its first set of results since switching its accounting year end to March instead of December, the CIH reported total income of £9.9m over the 15-month period but also booked costs of £11m.

In its last set of results, which only covered a 12-month period in 2016, the organisation made a total loss of £837,000.

The CIH has posted a loss every year for several years, with an £823,000 loss recorded for the 2015 financial year and £1.7m in 2014 (some of these figures are restated for accountancy reasons).

 

 

Gavin Smart, deputy chief executive of the CIH, told Inside Housing: “We are disappointed in these results because they are not where we wanted them to be. What it has led us to do is more work to achieve the changes we talked about last year.

“We have made changes and I can see things improving but they are not yet showing improvement in the bottom line.

“We have agreed a corporate plan which includes some fairly significant changes designed to improve that bottom line over the next three years. We have to stop these year-on-year losses.”

Mr Smart said the losses were “about half and half [down to] income being down and costs which were higher than we’d expected”.

He added that the changes outlined in the corporate plan could involve redundancies at the organisation.

In terms of turning around the CIH’s finances, Mr Smart said the increased drive to professionalisation in the sector presented opportunities to generate revenue.

“There is a much greater move towards professionalism than we have seen in the last few years,” he continued. “And as organisations take steps to professionalise their staff, we have a role to play in that, and we can see that creates opportunities for us.

“Our job is to make sure that CIH is in the right shape to take advantage of these opportunities.”

There was also a stabilisation of membership numbers after several years of declining membership.

There were 16,992 CIH members at the end of March 2018, up slightly from 16,840 at the end of 2016. The number of paying members also increased slightly, up from 10,084 a year ago to 10,109 at the end of 2017/18.

The CIH has targeted a 2% rise in both paid and overall membership numbers by 2020/21.

“We think the renewed interest in professionalisation in the sector will mean a renewed interest in CIH membership,” said Mr Smart.

There was also more positive news in terms of the CIH’s pension liabilities. In 2016, the organisation had a total negative movement of funds of £3.4m after booking a liability on its pension scheme of £2.6m. In its latest set of accounts, the valuation of the pension scheme improved by nearly £1.5m, giving a positive net movement in funds of £450,000.

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