Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: October 1, 2024

Purpose:

Content: Cabinet: (1)           noted that Sixty Bricks has ceased trading and will be registered as a dormant company with Companies House on completion of remaining financial closedown activity in Autumn 2024;   (2)           noted the appointments of the Corporate Director of Capital Strategy and Portfolio Management as Company Director and the Corporate Director of Financial Services as Company Secretary for the period the company remains dormant, following the exit of all previous Directors;   (3)           noted the audited annual Sixty Bricks company accounts, covering the period April 2023 – June 2024, attached as Appendix 1 to the report. Also, noted that a further audit of accounts will be undertaken, covering all final financial transactions from July 2024 onwards;   (4)           noted Sixty Bricks will be placed into dormancy in a solvent position, with final residual cash balance of £1 million; and   (5)           noted that the £1 million residual cash will be returned to the council (the Shareholder) as a dividend on completion of financial closedown activity completing in Autumn 2024. Funds will be held in a reserve managed by the Strategic Director of Resources (S151 Officer) used to offset any future liabilities incurred by the council from Sixty Bricks pipeline schemes which cannot be progressed.   Options & Alternatives Considered This report provides an update on actions taken to place Sixty Bricks into dormancy following an assessment of options for the company, as such no alternative options have been considered.   Following an external review of Sixty Bricks by 31Ten, Cabinet in March 2024 considered several options for Sixty Bricks: ·     Option 1: Sixty Bricks to continue as a conventional housebuilding company. ·     Option 2: Reset Sixty Bricks to be a more entrepreneurial development company. ·     Option 3: Make Sixty Bricks dormant. At Cabinet in March 2024 the decision was made to place Sixty Bricks into dormancy. This option was agreed as it provided the Council with the flexibility to respond to the current financial challenges, minimising its financial exposure, deliver operational savings, whilst retaining the opportunity to revive the company in the future.