Agenda and minutes
PDF 294 KBVenue: Council Chamber, Woodhatch Place,11 Cockshot Hill, Reigate, Surrey ,RH2 8EF
Contact: Huma Younis, Committee Manager Email: huma.younis@surreycc.gov.uk
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Apologies for Absence
To note any apologies for absence. Additional documents: Minutes: Apologies had been received from David Lewis (Cobham).
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Minutes of the Previous Meeting: 19 July 2022
To agree the minutes from the last meeting. Additional documents: Minutes: The minutes of the last meeting were agreed as a correct record. |
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Declarations of Interest
All Members present are required to declare, at this point in the meeting or as soon as possible thereafter (i) Any disclosable pecuniary interests and / or (ii) Other interests arising under the Code of Conduct in respect of any item(s) of business being considered at this meeting NOTES:
Additional documents: Minutes: There were none.
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Questions and Petitions
To receive any questions or petitions. Additional documents: Minutes: There were none.
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STRATEGIC INVESTMENT BOARD 2021/22 FULL YEAR WITH 2022/23 MID YEAR UPDATE
The Strategic Investment Board is asked to consider its mid-year report. Additional documents: Minutes: The report was introduced by the Strategic Finance Business Partner who explained that the mid-year report outlined challenges and opportunities of the Council’s investment companies and provided an update on performance expectations for the current year. He noted that in 2021/22 the three wholly owned subsidiaries Halsey Garton Property, Halsey Garton Residential and Hendeca delivered the following combined results: 4.5% return on investment for the Council, being in the form of gross interest plus dividends; an £11.1 million of interest margin to the Council; dividends £0.3 million; pre-tax profits excluding revaluations of £2.6 million. Reasons were given for the increases and variances compared to the previous year. It was noted that the profits were not included in the returns to the Council but would support the payment of dividends. Highlights included: - Halsey Garton group: a part-time managing director and an independent non-executive director were appointed in 2022 to carry out a strategic review of the company and to strengthen the asset management of the portfolio - Halsey Garton Properties: The portfolio was expected to be fully occupied by the end of the financial year except for the ex-Debenhams in Winchester. Following retail industry changes and Covid-19, the property valuations bounced back in 2021/22 by recovering £40 million across the portfolio. No acquisitions or disposals had made since late 2018. - Halsey Garton Residential: remained stable in delivering a £0.2 million profit before tax in 2021/22 to the company, in addition to the Council benefitting from the loan arbitrage. - Connect2Surrey: commenced trading in February 2022, corrective action had been taken to mitigate the initial challenges faced around the volume and proportion of placements, promoting compliance within the Council’s Adult Social Care teams. The loss before tax was expected to be slightly worse than the £0.2 million budgeted. - Surrey Choices: continued to focus on the Changing Days programme in favour of community hubs which were integrated within local communities; which led to a reduction in the footprint occupied of 25%, with an overall target reduction of 50%. Another focus was on cost efficiencies that are passed on to the Council with the target of £3.5 million over three years, which they were mostly on target with. It was looking to grow its external income proportion from an existing 4% to 10%. Recruitment continued to be the biggest challenge. - Hendeca: its focus is to diversify income streams to help strengthen and grow the company, including expanding the training offering and complementary service offerings that leverage the core business of fire services.
The Cabinet Member for Property and Waste noted that since the Managing Director of Halsey Garton group had joined, there had been greater focus on the work underway with good re-gears on leases and moving to a 100% let across the portfolio, apart from Debenhams.
The Leader sought clarification on the governance process concerning Halsey Garton when the Council identified potential commercial investment and then proceeded to purchase. The Strategic Finance Business Partner noted that in the ... view the full minutes text for item 5/23 |
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Exclusion of the Public
That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting during consideration of the following items of business on the grounds that they involve the likely disclosure of exempt information under the relevant paragraphs of Part 1 of Schedule 12A of the Act.
Additional documents: Minutes: RESOLVED: That under Section 100(A) of the Local Government Act 1972, the public be excluded from the meeting during consideration of the following items of business on the grounds that they involve the likely disclosure of exempt information under the relevant paragraphs of Part 1 of Schedule 12A of the Act.
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STRATEGIC INVESTMENT BOARD 2021/22 FULL YEAR WITH 2022/23 MID YEAR UPDATE
This Part 2 annex contains information which is exempt from Access to Information requirements by virtue of paragraph 3 – Information relating to the financial or business affairs of any particular person (including commercially sensitive information to the bidding companies). Additional documents: Minutes: A separate confidential Part 2 minute was done for this item.
RESOLVED:
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Publicity for Part 2 Items
To consider whether the item considered under Part 2 of the agenda should be made available to the Press and public.
Additional documents: Minutes: RESOLVED:
That no confidential information within the item considered under Part 2 of the agenda should be made available to the Press and public.
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