Agenda item

To receive the report Companies Performance Update – Winter 2023 and to note observations from the Overview and Scrutiny Committee.

The Executive Member for Commercial and Community Assets, Councillor Andrew King and Chair gave the Executive Sub-Committee introduced the Companies Performance Update – Winter 2023.

The report provided an overview of the performance of the companies currently owned, or part owned, by the Council. The current operational companies are Greensand Holdings Limited, Horley Business Park Development LLP and Pathway for Care Limited.

Considering these companies in turn:

·        Preparations are underway in anticipation of Greensand Holdings Limited being dissolved in an orderly manner. The Council is continuing to work with the company’s directors to ensure that the company’s affairs are properly managed and to review its future strategy. The company’s assets are continuing to be managed with options for their future use being reviewed.

·        Horley Business Park Development LLP is on track to be dissolved by way of a Members Voluntary Liquidation, with a plan to resolve its financial affairs currently being implemented. Interest owed by the LLP to the Council is impaired in the Council’s accounts to reflect the risk of credit loss.

·        There is an ongoing commercially sensitive dialogue with the majority shareholder in Pathway for Care Limited, with it considered likely that the company will be forced into administration unless a negotiated settlement can be reached. The most recent company accounts received by the Council for the year to 31 December 2022 do not have a valid audit opinion and show that the company is technically insolvent. The redemption date of 23 April 2023 for the Council’s £1.1 million of preference shares in the company has not been honoured.

More information on the details of these company arrangements was available in the confidential Part 2 section of the report.

Whilst the performance of these companies is not as was originally envisaged when they were created, and is in some cases markedly unsatisfactory, every effort is being made to ensure that current situations are effectively managed to secure best available value for the Council, the borough and its residents.

It was noted that the Council also owns RBBC Limited, created to preserve the company name in case of future need. Options for the future of this company are being developed for consideration by this Sub-Committee.

This report was considered by the Overview and Scrutiny Committee at its meeting on 7 December 2023. The Committee did not make specific observations for this Sub-Committee but asked that we take account of the discussion at the meeting the previous week.

There were no questions from Executive Members.

Visiting Members were invited to ask any questions. None were forthcoming in the public session. The Sub-Committee agreed to go into Part 2 Exempt session to discuss the Exempt report.

After discussion in Part 2, the Sub-Committee returned to public session, and it was agreed that:

RESOLVED – that the Partner, Shareholder and Trustee Executive Sub-Committee:

(i)               Notes the Companies Performance Update, as set out in the report and the Exempt report and considers the observations from the Overview and Scrutiny Committee as set out in the Addendum Draft O&S Minute.