Issue - meetings

AGREED that Members note:

a)      Arkwood’s Audited Statement of Accounts for 2022/23 at Appendix B; and

b)      As per section 4, that there will be no dividend declaration based on the performance up to financial year end 2022/23 and the forecast outturn for 2023/24.

The Business Manager – Financial Services was in attendance to present the Statement of Accounts for Arkwood Developments for 2022/23.  Arkwood’s Audited Statutory Accounts for the financial year 2022/23 were approved by their Board of Directors on the 27 November 2023 and would be finalised via the Annual General Meeting on 5 March 2024. The Statutory Accounts showed a profit after taxation of £407,437 for the financial year 2022/23.  The profit generated in the financial year has taken the Companies cumulative Profit and Loss Reserve to a balance of £404,048.

If the current forecast loss for the financial year 2023/24 of £313,105 was realised then that would take the cumulative Profit and Loss Reserve down to a balance of £90,943. The Board of Directors did not consider this to be a sufficient balance to recommend the payment of a dividend to its shareholder, the Council, as, based on the forecast, the Company would fail to satisfy the solvency and liquidity test as required by the Companies Act.

Members considered the report and whilst disappointed that a dividend could not be paid were confident in the resilience of the Company and an anticipated return of a dividend in 2025/26.

AGREED      (unanimously) that Members note:

a)            Arkwood’s Audited Statement of Accounts for 2022/23 at Appendix B; and

b)            As per section 4, that there will be no dividend declaration based on the performance up to financial year end 2022/23 and the forecast outturn for 2023/24.

Reasons for Decision

To ensure appropriate review of the Statutory Accounts of the Council’s wholly owned Housing Development Company (Arkwood).

Options Considered

None