Last updated 13 September 2022
Orbit Group
Orbit Group is a registered social landlord (RSL) that owns or manages around 46,000 homes in the Midlands and the South East. The group is based in Coventry and subsidiaries include Orbit South, Orbit East and Orbit Heart of England.
The group has a development operation, Orbit Homes, one of the largest development pipelines of any RSL in the UK and has plans to deliver 6,500 new homes by 2025.
Financials
Turnover at Orbit has grown steadily in recent years and in 2021 reached £374 million (2021: £355 million) and after a fall in the previous year the operating surplus rebounded to £131 million (2021: £112 million).
To view the financials for Orbit Group, visit the group”s website here.
Operations
In September 2021, Orbit was one of 31 partners chosen by Homes England for grants in its £5.2 billion Affordable Homes Programme 2021-26. Orbit was awarded £104 million to deliver 1,500 homes.
In the 2022 survey of the top 50 developing housing associations by Inside Housing magazine, Orbit completed 1,013 homes of all tenures during the period April 2020 to March 2021 (2021: 848 units). This total ranked Orbit in 13th position in terms of completions. Out of this total, 77 units were for social rent, 282 for affordable rent, 64 for London affordable rent and 31 for intermediate rent. Orbit was also ranked tenth in terms of the percentage of units completed that were low cost ownership with 338 units representing 33.4% of total completions.
In terms of work in the pipeline, Orbit was ranked tenth and expects 1,231 units to complete in 2022/23 with plots secured for all these homes. Over the next two years, Orbit expects to complete 2,726 homes with plots for 2,171 of these units secured. Over the next five years, 6,727 units are expected to complete and plots for 3,747 units have been secured.
Orbit’s latest accounts show 1,013 new homes delivered with a plan to build 6,500 new homes over the next five years (2021: 848 units). A total of 228 market sale properties (2020: 183) and 361 shared ownership properties were sold (2020: 329), resulting in property sales of £117 million (2020: £90 million).
Glenigan Data
In the 12 months to Q2 2021 calendar, Glenigan recorded contracts awarded by Orbit to external contractors worth £27.1 (2019: £4.9 million).
The group submitted detailed planning applications to build 27 units in 2021 (2020: 117).
Conclusion: Challenges ahead
Orbit has bounced back from the worst of the Covid-19 pandemic, which had such a big impact on performance. In early 2020, Orbit hoped to complete 1,539 new homes according to Inside Housing’s annual survey but the impact of the pandemic saw the group deliver nearly half this figure.
In the latest accounts, the operating margin has recovered but at 35.1% (2021: 31,6%) remains below pre-pandemic levels. The surplus on the sale of housing properties rose to £37 million (2021: £22 million), but £22 million (2021: £8 million) came from disposal of properties outside the group’s core operating areas. Expenditure on maintenance and repairs increased to £90 million (2021: £75 million)
Completions of new homes also rebounded but again remain below pre-pandemic levels. A profit of £12 million was realised from the sale of open market homes (2021: £8 million). Much of the recent delivery has come through a partnership with Homes England and Orbit was again a big winner in the grants awarded covering the 2021-26 period.
The group had been building larger developments such as the Dereham Development in Norfolk, which provided nearly 300 homes (Project ID: 11269816) and the third phase of Thrapston development in Kettering (Project ID: 13109243).
Schemes due to start on site in 2023 include a £14 million redevelopment of the Swan Hotel in Ashford, Kent to deliver 119 houses and 12 flats (Project ID: 18035384). This scheme is being developed jointly with Countryside Properties in a model which the group prefers. The average contract awarded by Orbit to external contractors in the 12 months to Q2 2021 was valued by Glenigan at £5.4 million (2021: £2.5 million), but this is partly a reflection of Orbit building out its own developments.
Major projects being developed out include parcels of the Marham Parkway development in Suffolk (Project ID: 20108421). The size of developments in the pipeline has reduced but remains on relatively larger schemes focused on delivering housing. In 2021, the average detailed planning applications comprised just 14 units (2020: 117units) and in the latest year all of these proposed units were again some form of house.
Orbit has been looking for alternative avenues for development including joint ventures with local authorities. This could be jeopardised by growth in council house building.
Financial pressure and competition for land will undoubtedly continue, and this is increasingly reflected in a financial strategy that, in terms of development, but government moves to assist RSLs in the worst of the cost of living crisis should provide some shield.
Orbit’s revenue reserves have also strengthened to a record £826 million (2021: £740 million) and the group will remain one of the UK’s biggest developers of new-build social housing of various tenures.
Winning Work with Orbit Group
Orbit often builds out its own projects, or on larger major social housing work develops projects in joint ventures with other groups including other RSLs such as Croydon Churches and private developers, such as Chartaway and Ilke Homes.
Orbit also works in conjunction with local authorities, such as the London Borough of Bexley on the Larner Road estate, which Wates Living Space is delivering.
In 2013, Orbit closed its inhouse maintenance arm, Property Matters. In 2014, Orbit agreed a £250 million responsive maintenance contract expected to last eight years with Ian Williams, Mitie and Willmott Dixon for its Heart of England subsidiary.
Glenigan’s research shows that, where Orbit uses main contractors, these include smaller companies such as Deeley and Wellington.
Information on working for Orbit as a supplier including how to register and obtain tender documents electronically is available here. Orbit also uses existing frameworks, including the Housing Procurement Portal, which can be viewed here. Orbit works with Proacitis to improve procurement and information on this is available here.
The group’s professional services division is Service Matters, which is a division of the Orbit Group.
Key Orbit procurement contacts include:
Head of capital delivery – Mark Drury, tel: 01234-436436
Regeneration & partnership director – Maggie McCann, tel: 01234-436436