Agenda item

The Managing Director of Aequus Tim Richens introduced the report.  He explained that Aequus Group Holding Limited (AGHL) was the holding company and Aequus Development Limited (ADL) holds the 51 residential rental units.  It was the smaller company with profit before taxation of £217k for the year as there was a strong demand for rental property.  Aequus Construction Limited (ACL) delivered new housing, both affordable and private.  He outlined some of the different projects along with the profit made on the developments.  The accounts had been audited by Bishop Fleming and approved by the Board and the Shareholder on behalf of the Council.  They are for noting by the Committee as it is a Council owned company.

He stated that the company was working with South Gloucestershire local authority (LA) on housing projects there and hoped to work with North Somerset in the future.  He explained that South Gloucestershire did not have the time to set up a company, whereas BANES had the skills and experience.  They get the housing they want and a share of the profits.

During discussion the follows questions were answered:

·  Levels of profit (Councillor Malcom Treby), it was explained that the levels varied year on year and it was hoped with the partnerships with other LAs there would be a more sustained profit level.

·  Sustainability (Councillor Sam Ross), there were lots of measures in place low energy EPCA.  In Frenchay they had the lowest level of air tightness ever recorded by VISTRY.  Refurbishments were harder in terms of sustainability due to working with planning and listed buildings.

·  Repurposing commercial units into housing (John Barker), this helped the Council bring back empty property into residential usage so there was an economic benefit, along with a huge demand for rental properties.

·  £1.169m revenue (Councillor Lucy Hodge), this was the dividend paid to the Council related to financial returns from 2020/21 and 2021/22.

·  Tim Richens explained that there was a push to change the way developers think, not just for maximum profit but having the type of properties that were needed and being sustainable.

Aequus Group Holdings received the dividends and passed them to the Council.  It was the smaller company with minimal accounts.  In respect of the board of directors and what they are paid in terms of transparency, it was explained that the remuneration policy had been approved by the Council as shareholder and was reviewed every 2 years.  The company provided all the information that was required of them.

During further questions the following points were raised:

·  Risk assessments (Councillor Sam Ross) were shared with the board and it was for the Council to discuss with their officers.

·  Jeff Wring explained that these were standardised report templates to each Committee.

·  Previous accounts 2019-2020 (Councillor Lucy Hodge) were more detailed, this would be raised by the Section 151 Officer.  It could be down to a change in auditors.

RESOLVED that in line with Corporate Audit Committee’s terms of reference, the audited accounts of ADL, ACL & AGHL (Council wholly owned companies) be noted.