Issue - meetings

Annual reporting on Epsom & Ewell Property Investment Company Ltd (EEPIC).

The Sub-Committee receive the Annual report on Epsom & Ewell Property Investment Company Ltd (EEPIC).

The following matters were considered:

a)            Withdrawal of recommendation 3 of the report. The Head of Property and Regeneration recommended to the Sub-Committee that recommendation 3 of the report should be withdrawn as the Director of Environment, Housing and Regeneration had resigned from the Council.

Following consideration the Sub-Committee unanimously resolved to withdraw recommendation 3 of the report.

b)            Financial performance. The Sub-Committee noted that EEPIC had reported a full-year profit before tax of £1.4m, with a dividend of £600,000 paid to the shareholder and retained earnings of £900,000. Property valuations had increased by £900,000 over the past year, and the company’s cash balance as at 31 March 2022 was £1.25m.

c)            Dividend to shareholder. The Sub-Committee noted that the dividend paid to the shareholder had decreased from £870,000 in 2021 to £600,000 in 2022. The Head of Property and Regeneration informed the Sub-Committee that this reduction had occurred following the agreement of a Deed of Variation for the property at Bracknall. The Deed had provided the tenant with a period of rent free support during the Covid-19 pandemic in exchange for a 5 year lease extension. The net benefit to EEPIC of this agreement was a £6,638,625 income stream at the end of the previous lease term.

d)            Capital gain of properties. The Sub-Committee noted that the two properties had achieved different rates of capital gain within the year. The Head of Property and Regeneration informed the Sub-Committee that this was due to the difference in nature of the properties.

Following consideration, the Sub-Committee unanimously resolved to:

(1)      note Epsom & Ewell Property Investment Company Ltd Report to Shareholder (Appendix 1 to the report);

(2)      note Epsom & Ewell Property Investment Company Ltd Shareholder Annual Review (Appendix 2 and 3 to the report);

(3)      approve the confidential Annual Business Plan 2023-2024 (Appendix 4 to the report);

(4)      approve the confidential Report to Shareholder (Appendix 5 to the report).