The Hounslow Council Shareholder Committee met to discuss the performance of the Lampton Group of companies, including updates on the Lampton One Board project and the financial performance of Hounslow's companies in the first quarter of 2025-26. The committee noted the progress of the Lampton One Board project, which aims to consolidate governance across all Lampton Group companies into a single board structure. The committee also noted the financial performance of the Lampton Group of companies in quarter 1 of 2025/26.

Lampton Group Financial Performance

The Shareholder Committee reviewed the financial performance of the Lampton Group of companies for the first quarter of 2025/26. The report on Hounslow Companies Performance Quarter 1 2025-26 indicated that the group is currently forecasting a loss of £2.2 million, which is £1.4 million behind budget.

The performance of individual companies within the group varied:

• Lampton 360 Ltd: Forecasting a loss of £0.11 million, £0.10 million behind budget.
• Lampton Recycle 360 Ltd: Forecasting a profit of £0.32 million, £0.06 million behind budget.
• Lampton GreenSpace 360 Ltd: Forecasting a profit of £0.31 million, £0.05 million behind budget.
• Coalo Ltd: Forecasting a loss of £0.89 million, £0.35 million behind budget.
• Lampton Leisure Ltd: Forecasting to break even, on budget.
• Lampton Investment 360 Ltd: Forecasting a loss of £1.83 million, £0.81 million behind budget.

The report identified several factors contributing to these variances, including reduced commission value for Coalo Ltd, lower rent levels and void properties for Lampton Investment 360 Ltd, and increased insurance costs for Lampton 360 Ltd.

Opportunities and risks were also outlined, with potential impacts on the forecast. These included Coalo securing additional work, Lampton 360 assessing the need to use its contingency, and the risk of reduced commission not being mitigated as planned.

The report also highlighted two key workstreams to improve the group's financial position over the medium term:

• Coalo: Reducing the number of empty homes in Hounslow.
• Lampton Investment 360: Undertaking a full review of its housing portfolio to ensure rent income and reviews are updated regularly and efficiently.

The committee was informed that Lampton Group is developing a medium-term financial plan to demonstrate when the companies will become profitable, consistent with the council's approach.

The report noted that Lampton Development 360 LLP is carrying approximately £2 million of feasibility costs on four sites that have not yet secured planning permission, and work is underway to assess the future of Lampton Development 360 LLP.

The committee was also informed that at quarter 1, Lampton Group did not expect to require additional cash flow support from the council.

Robert Meldrum, Director of Finance Services, commented on the report, noting that the forecast performance was presented with a central, most likely case, with the risks and opportunities to that position being quantified in optimistic and pessimistic forecasts. He also recognised the work that Lampton is doing to address the in-year position, in particular the work on voids and Lampton Investments.

Lampton One Board Project

The Shareholder Committee received an update on the Lampton One Board Project, which aims to consolidate governance across all Lampton Group companies into a single, unified board structure. The project's objectives include strengthening governance and oversight, improving strategic alignment across subsidiaries, enhancing board effectiveness and decision-making, and reducing duplication and streamlining operations.

According to the Lampton One Board Project Update, key deliverables implemented as part of the project include:

• Appointment of Robin Porter as the new Group Chair.
• Implementation of a skills matrix to ensure balanced expertise across the board.
• Development of a new dashboard to track key performance indicators across all the companies.
• Redesign of governance structures, including revised Terms of Reference and a new Scheme of Delegation.
• Finalisation of board composition, with directors not selected for the new Group Board asked to resign by 30 September 2025.
• Reduction of board members from eight to five, including the Chair.

The first One Board Meeting is scheduled for 2 October 2025 at Hounslow House.

Future deliverables include finalising committee structures, enhancing risk management, providing training and induction for non-executive directors, improving meeting planning, and overseeing the development of the three-year Business Plan.

The report noted that the new governance arrangements for Lampton Group will reduce the cost of non-executive directors by £0.1 million from 2024/25 to 2026/27.

The committee was informed that the risks associated with the reduced number of non-executives and the change of frequency in board meetings are being mitigated by working with executive members and non-executives to set the new framework, ensuring agendas are adequate, and assigning each non-executive a specific company portfolio.

The members of the Lampton Group board will be:

• Robin Porter
• Gillian Bishop
• Simone Chinman
• Robert Overall (until 31st October 2025)
• Rowland Omamor (to be appointed with effect from 30th September)
• Dr Gurcharan Salotera (to be appointed with effect from 30th September)

Previous Meeting Minutes and Urgent Business

The committee approved the minutes from the meeting held on 3 June 2025. There was no other business considered urgent.