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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.