Shareholder Committee
Minutes of the meeting held on Tuesday 16th July 2024 commencing at 12.30 pm.
Councillor Carl Les in the Chair. Councillors Gareth Dadd and Mark Crane.
In attendance: Councillors George Jabbour.
Officers present: Richard Flinton, Gary Fielding, Barry Khan, Kerry Metcalfe and Elizabeth Jackson
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Copies of all documents considered are in the Minute Book
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41 |
Apologies for Absence
There were no apologies for absence.
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42 |
Minutes of the meeting held on 19 March 2024
Resolved –
That the Minutes of the meeting held on 19 March 2024 be confirmed as read and signed by the Chair as a correct record.
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43 |
Declarations of interest
Councillor Gareth Dadd declared a non-pecuniary interest in Minute 45 on the basis that he was a director of Veritau.
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44 |
Public Participation
There were no questions or statements from the public.
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45 |
Brierley Group 2023/24 Outturn Financial Performance Report
The report of the Assistant Director – Commercial, Property and Procurement, providing a Quarter 4 and outturn financial performance update on the companies that make up the Brierley Group.
Kerry Metcalfe, Assistant Director – Commercial, Property and Procurement introduced the report, providing an overview of performance and highlighting the fourth quarter achievements and challenges for the individual companies. She drew Member’s attention specifically to:
· The strong performance across most areas, with a projected pre-tax profit of £3.934m and Shareholder value to the Council of £12.897m for the year. · The projected outturn was £3.775m, representing a positive variance of £159k against budget. · Brierley Homes brought added value as it assisted the Council to deliver affordable homes · Align Property Partners, Yorwaste and Bracewell Homes showed strong financial performance for the year and have each delivered pre-tax profits in excess of £1m. · NYES outturn was £854k which was an improvement against projections after it made a loss last year. · Brierley Homes made an outturn loss of £1.3m due to issues at the Marton cum Grafton site as reported in Quarter 3 leading to additional costs and delays in sales · Brimhams Active reported an outturn loss of £491k due to delays to the refurbishment. · North Yorkshire Highways had had a successful year as it had achieved MOT test centre status and compliance to ISO standards. It had delivered £2.7m of financial efficiencies to the Council.
The improvement for NYES was noted. In response to questions the Assistant Director advised that some savings were due to vacancies, however the company was not expected to return to the previous level of losses. It was confirmed that Brimhams Active had always relied on subsidy and it was to be brought back in-house alongside other council leisure provision.
The Leader advised that a question had been received from Councillor Paul Haslam that morning as follows:
Have all the Brierley and other companies we own adopted and embraced the climate emergency and the appropriate parts of the climate mitigation strategy? If not, when?
Additionally have all our companies adopted an active ESG environment, social and governance policy? If not, when?
Have these companies adopted the circular economy where it is possible which ensures better use of feedstock and therefore saving money as well as reducing their impact on nature and climate? If not, when?
If we adopt this, if it has not already happened, then maybe we can help our suppliers and other north Yorkshire businesses on their journey to net zero and then share best practice with our many able suppliers.
The Chief Executive advised the Committee that the Council owned companies were separate organisations with their own environmental policies and strategies and specific ESG approaches. It was agreed that the Corporate Director of Resources would provide a written response to Councillor Haslam.
Members noted the report and thanked officers for the update.
Resolved –
That the Shareholder Committee note the report and the Brierley Group Q4 and outturn Financial Performance for the 2023/24 year.
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46 |
Work Programme
The Assistant Director – Commercial, Property and Procurement advised that a further item on the role of elected members on Company Boards should be added to the work programme for the meeting to be held on 17 September 2024.
Members then considered and endorsed the work programme for the Committee for the remainder of 2024/25.
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47 |
Date of next meeting - 17 September 2024
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The meeting concluded at 2.25 pm.