Agenda item

Report of the Chief Operating Officer (Section 151 Officer)

The Board considered a report of the Chief Operation Officer (Section 151 Officer) which had been considered by the Coventry Shareholders Committee on 26 September 2023.  The Annual Performance Report focussed on a backward look over the 12 months of operation from April 2022 to March 2023 for Coventry Municipal Holdings (CMH) and its subsidiaries which included the following entities:

-  Coombe Abbey Park Limited (CAPL), including two subsidiaries:

-  No Ordinary Hospitality Management Limited (NOHM)

-  Coombe Abbey Park (LACo) Limited (CAPL LACo)

-  Tom White Waste Limited (TWW), including two subsidiaries:

-  A&M Metals & Waste Limited (A&M)

-  Tom White Waste (LACo) Limited (TWW LACo)

-  Coventry Regeneration Limited (CR)

-  Coventry Technical Resources Limited (CTR)

-  No Ordinary Hotels Limited (NOH)

The Group Governance Agreement (GGA) required CMH to produce an Annual Performance Report looking back at the operation of the Group to the year-end 31^st March 2023.

Coventry Municipal Holdings Limited (CMH) was established in November 2021 as an intermediary parent company to strengthen the governance arrangements for the Council's existing company investments. CMH acquired the share capital of Council owned subsidiaries following an allotment of shares. The Council remains the ultimate parent company for the companies within the CMH group.

Coombe Abbey Park Limited (CAPL) was acquired by the Council in December 2017. CAPL operated Coombe Abbey Hotel in the surroundings of Coombe Abbey Park. The Council already owned the freehold of the hotel, which is let on a long-term lease to CAPL, held preference shares in the company and provided loan financing. The Council owned and operated Coombe Abbey Country Park, and the acquisition of the hotel management company provided an opportunity for the Council to consolidate its interest in an important leisure and cultural destination in the city. Following the acquisition, all future dividends were due to the Council as sole shareholder.

CAPL is operating a 15-month financial year from 1^st January 2022 to 31^st March 2023. This would align the company’s annual reporting date with the Council and the other companies within the CMH group for future years. This approach met a recommendation made by the Council’s external auditor. CAPL’s financial year will run from April to March from 2023/24 onwards.

Tom White Waste Limited (TWW) was acquired by the Council in March 2020. The Council aimed to achieve significant service benefits due to the synergies with internal services and the competitive advantage of becoming the largest Commercial Waste service in the city as a combined entity. TWW would also provide financial returns to support the Council’s budgetary position.

Coventry Technical Resources Limited (CTR) held the consideration for the sale of the shares in Arena Coventry Limited in 2014/15. These funds were due be transferred to the Council in 2023/24 following a restructure of the balance sheet for CTR.

A corresponding private report detailing confidential financial matters was also submitted for consideration (Minute 23 below refers).

The Board questioned Officers and received responses on several matters including:

·  Reasons for the report also having a separate Private report which would be considered in Private session.

·  Funding for future restorations.

In noting the report, the Board asked that consideration by given to receiving future reports after the audited accounts were published in order that the information currently contained within the private reports would then be in the public domain.