Agenda item

Purpose

1.    The Council wholly owns Portico Shipping Limited ("the Company"), a company which provides cargo handling and stevedoring services from Portsmouth International Port.

2.    The Company's board of directors are required, by their Articles of Association, to prepare an annual budget and to seek the approval of Cabinet as shareholder, of that Business Plan. Once approved, the directors of the Company must ensure that the Company's business is conducted in compliance with that plan.

3.    The Budget & Forecast has been presented and scrutinised by the Company Advisory Group, as part of the governance for the shareholder.

4.    The report sets out the advice and recommendations from the Council's officers together with areas of concern and key risks for Cabinet to consider in its on-going investment in the Company.

RECOMMENDED that Cabinet:

a)    Approves the Company’s annual Business Plan, as set out in Appendix A of the report.

b)   Notes the likely call-down of up to £1.8 million from the £15 million loan approved within the Council's existing Capital Programme in the Financial Year 2023/2024, as set out in exempt Appendix 3.

c)    Notes that the Council will carry out an independent assessment of the future business plan of the Company in comparison to reasonable alternatives to ensure that ongoing Council support provides the best financial return to the Council. This should be carried out and reported back to Cabinet ahead of the 2024/25 budget before any further Revenue or Capital Budgets are approved.

The Cabinet:

1)         Approved the Company’s annual Business Plan, as set out in Appendix A of the report.

2)         Noted the likely call-down of up to £1.8 million from the £15 million loan approved within the Council's existing Capital Programme in the Financial Year 2023/2024, as set out in exempt Appendix 3.

3)         Noted that the Council will carry out an independent assessment of the future business plan of the Company in comparison to reasonable alternatives to ensure that ongoing Council support provides the best financial return to the Council. This should be carried out and reported back to Cabinet ahead of the 2024/25 budget before any further Revenue or Capital Budgets are approved.