Issue - meetings

Report of the Executive Director - Place

The Cabinet considered the report of the Executive Director – Place providing an update on the performance of Sefton Hospitality Operations Limited relative to the previous Business Plan for the company and to the original Business Case for the Crosby Lakeside Adventure Centre project, part of which was now operated by the company. The report provided an update on operational activities, alongside recent and forecast financial performance in the context of current and future conditions and outlook for the economy and for the sector, highlighting key decisions required by the Council.

Decisions Made:

That:

(1)      the outturn for the company for the financial year 2022-23 and the factors influencing that outturn be noted;

(2)      the recent and current factors affecting the economy and the hospitality sector, and future outlook for both, and how they have affected and will affect the company, be noted;

(3)      the updated strategy and business plan for the company be approved;

(4)      the changes to the loan agreement between the Council and the company, as stated in section 5 of the report, be approved;

(5)      it be noted that any material variations to the Business Plan will be reported to the Cabinet as shareholder at the earliest opportunity; and

(6)      the appointment of an interim Board Chair, as per section 6 of the report, be approved.

Reasons for the Decisions:

The role of Sefton Hospitality Operations Limited (SHOL) remained focused on the delivery of an experience for customers that aligned with the vision and objectives of the borough and the Council. In addition to the revitalisation of, and the maximisation of opportunity from, underused assets in Sefton, SHOL and its strategy continued to enable support for local people with access to higher-quality career opportunities in the hospitality sector. As previously, this model also delivered best value to the Council (via the removal of the subsidy formerly required to the previous hospitality offer at Crosby Lakeside Adventure Centre (CLAC).

The Council as shareholder remained committed to the long-term future of the company and the venues it operated.

With regards to governance and board composition, the Cabinet had delegated powers set out in Chapter 5, Paragraph 40 of the Constitution to appoint the Council’s representatives to serve on Outside Bodies.

Alternative Options Considered and Rejected:

No other options were considered by the Council. The company, as part of its strategy and business planning process, had considered options for the business and its current and potential future venues, although some aspects of that review process would be commercially sensitive and confidential.