Agenda item

To receive an update on the performance of the companies, currently owned or part-owned, by the Council.

Members received an update from Councillor T. Archer, Portfolio Holder for Investment and Companies, on the performance of the companies, currently owned or part-owned by the Council.

These companies are Greensand Holdings Limited, Horley Business Park Development LLP and Pathway for Care Limited. It was noted in the report to the Committee that all these companies are currently considered to be performing in line with the Council’s current objectives and expectations. The Annual Report and Financial Statements for Greensands Holdings and Horley Business Development for the year ended 31 December 2019 were provided in Annex 1 and Annex 2 to the report. Pathway for Care’s Unaudited Financial Statements for the year ended 31 July 2019 were provided in Annex 3.

Greensands Holdings Limited is a property investment and development company set up to facilitate the Council’s property investment activities and wholly owned by the Council. The company generates an income from one of its property holdings and provides an income to the Council through its repayments and interest on the loan.

Horley Business Park Development LLP is a joint venture which was set up to bring forward planning subsequent development, of employment land in the Horley area. It does not currently generate a profit but is working towards the future development of the proposed Horley Business Park as a long-term project. The Council has a 50 per cent share of the company.

Pathway for Care provides supported living facilities and support for their vulnerable residents in the borough and surrounding areas. The Council is a minority shareholder in the company. Members had been provided with a written answer on debtors and recoverability of payments by the company. It was noted that the debtors are almost exclusively other Local Authorities - payment is often made substantially in arrears but Pathway for Care have previously advised that recovery rates are high. Further details have been requested from Pathway for Care and details on their deferred tax asset.  A further update would be provided to Members as soon as that was received.

It was confirmed that work was ongoing to develop a longer-term commercial strategy. This will set out recommendations on the best way to structure the Council’s trading companies as well as how to help shape and direct the future actions of the Council around commercially relevant activities. This Commercial Strategy would be brought to the next Committee meeting on 9 December.

Members asked if the company accounts presented at the Commercial Ventures Executive Sub-Committee meeting in September could be made public. It was confirmed that the accounts were published on the public website as part of the Overview and Scrutiny Committee papers.

Chair, Cllr N. Harrison, thanked Councillor T. Archer, Portfolio Holder for Investment and Companies, the Interim Head of Finance, and the Director of Commercial and Investment Services, for their work and responses to Members’ questions.

RESOLVED that:

(i) the Companies Performance Update – Autumn 2020 as set out in the report to the Committee and the Exempt information be noted;

(ii) the observations of the Committee be noted by the Commercial Ventures Executive Sub-Committee at its meeting on 5 November 2020.