Decision details

The Cabinet considered the report of the Executive Director of Corporate Resources and Customer Services which provided an update on the progress and delivery of new homes as part of the  Phase 1 Business Plan for Sandway Homes Limited and follows on from previous reports provided to Members on the development and activities within the Company.

The report also provided an update on delivery of construction activity and the forecasted financial performance, comparing it to the previously agreed Business Plan and highlighting key decisions required by the Council, and details of the current progress in respect of Phase 2 Business Planning.

Decision Made: That

1)       approval be given to the revisions to the Phase 1 Business Plan as provided by the Company  to the Council as at November  2022, including changes to the financial forecast, duration of the programme and timing of the dividend, capital receipt and repayment of debt;

(2)      the range of external economic factors that have materialised over the last 6 months that could impact financial performance be noted;

(3)      the options currently identified from the updated exit strategy that would be available to the Council should the company fail to continue to operate be noted;

(4)      that any further material variations to the revised financial forecast in respect of the Phase 1 Business Case (the base case) that arise be presented back to the Cabinet for further decision at the earliest opportunity; and

(5)      it be noted that the progress being made in respect of potential business cases for 2 sites that would be included in a Phase 2 Business Plan and that subject to progress these will be reported to cabinet during the second half of 2023. This timeline will be driven by the Council having assurance that the financial objectives of Phase 1 have been or will be met. This will require projected sales income having been achieved and the financial risk to the council having been reduced.