Issue - meetings

The Cabinet Member for Built Environment, Housing and Sustainable Development, Councillor Matt McCabe introduced the report. Aequus officers Tim Richens (Managing Director) and Andrew Johnson (Director of Operations) gave a presentation which covered the following:

Aequus Group Strategic Business Plan 2024-2030

Short/Medium/Long Term Objectives

Our Purpose

Company Analysis

Aequus Construction Ltd – Pipeline Analysis

Aequus Construction Ltd – Property Analysis

Financial Forecast

Financial Overview

Revenue Analysis by Workstream

Sensitivity and Scenario Planning

Overhead

Profit Growth

Key Dependencies/Key Risks

Cash Management

Capital Loan Requirements

Strategic Forecast Summary

Shareholder Returns

Panel members made the following points and asked the following questions:

Councillor Johnson asked why there was such an emphasis on non-affordable housing as this does not align. The officer explained that there was a balance between social and market housing. Some schemes are 100% affordable. Social housing must be paid for with market homes. Market homes are driven by Council aims. We deliver a financial return to the shareholder (Council). The Cabinet Member added that normal commercial companies would extract 20% but Aequus extracts 4%. Funds are need to subsidise affordable housing.

Councillor Collins asked how the risk is managed. The officer explained that the scale being delivered is ambitious and there are many different types of project. We are developing a more standard house/apartment style.

Councillor Leach asked how much of a drag is the financial return to the shareholder on the outcomes. The officer explained that there is an element of impact. The Cabinet Member added that the money to the shareholder does effect the delivery of units. It is complex, the Council is responsible for land supply. He added that, once the company is delivering bigger volumes then the pressure of shareholder payment is not so much.

Councillor David asked if there was confidence that large projects will move forward. The officer explained that there is a clear vision on the pipeline and the development stages are frequently monitored.

Councillor Simon asked how much use there is of windfall sites. The Director explained that there are around 1000 assets (plots of land), asset reviews are carried out. The land supply pipeline is really important. In terms of privately owned sites, the Cabinet Member explained that he meets with officers biweekly so sites are monitored.

Councillor Heijltjes asked if the £1million financial return to the Council is ringfenced for anything. The Director explained that the return goes into the Council balance sheet as an income stream, it is not ringfenced.

The Chair thanked the Cabinet Members and officers.