The ESPO Management Committee met on Wednesday 17 June 2026 to discuss the Managing Director's progress update, review the committee's constitution, and consider the financial outturn for 2025-26 alongside the budget for 2026-27. The meeting also included a review of the 2025 Staff Survey results.

Managing Director's Progress Update

The committee was scheduled to receive an update from the Managing Director of ESPO, Kristian Smith, on the organisation's progress since the last meeting. The report pack indicated that ESPO had achieved a record financial performance in 2025/26, delivering a surplus of £8.3m, which was £1.1m ahead of budget. This strong performance was achieved despite a contracting educational supplies market, attributed to ESPO's diversified business model, market share growth, margin discipline, and expansion of its procurement frameworks. The report highlighted that framework rebate income had performed strongly, increasing by £0.6m compared to the previous year.

Despite lower sales volumes, margin performance remained resilient, with Stores margin at 33.3% and Directs margin at 18.0%, both ahead of budget. Cost control was also noted as a key strength, with total expenditure of £28.4m being £2.3m favourable to budget, due to operational efficiencies and vacancy management.

The report also touched upon the performance of ESPO Trading Limited (ETL) and Eduzone, which delivered a combined trading surplus of £162.8k, ahead of budget. Operational progress included maintaining high stock availability at 99.17% and achieving a 98% on-time delivery performance. Customer service was also highlighted, with ESPO receiving the Feefo Platinum Trusted Service Award for 2026.

Looking ahead, the report expressed caution regarding demand in 2026/27 due to persistent financial pressures within schools and evolving purchasing behaviours. Geopolitical developments, particularly in the Middle East, were identified as a risk to supply chains.

Review and Revision of the Constitution

The committee was scheduled to review and potentially revise the Constitution of the Management Committee. This item was presented by Legal Services. The minutes from the previous meeting on 31 March 2026 indicated that officers were undertaking a review of governance arrangements to support the effective and efficient conduct of the committee's business, including matters such as meeting frequency and quoracy. A report setting out options and recommendations from this review was to be presented.

Staff Survey 2025

The HR Manager was scheduled to present the findings of the Staff Survey 2025. The report pack indicated that over 58.6% of the workforce had been with ESPO for five years or more, suggesting employees felt it was a good place to work. The survey also indicated a high interest in ESPO as an employer, with an average of 28.4 applicants for every vacancy.

Regarding absence, the primary causes of days lost were stress/depression/mental health (24.95%), other musculo-skeletal problems (18.60%), and cough, cold & flu (14.23%). However, the instances of absence were highest for cough, cold & flu (108), followed by gastro-stomach/digestion (86). The report noted a general reduction in sickness relating to stress/depression and mental health in 2025/26, but an increase in seasonal/viral reasons. A programme of wellbeing support and intervention was planned for 2026/27, including Health MOTs and a Workforce Wellbeing Index.

Outturn 2025-26 and MTFS Update

The committee was scheduled to consider the financial outturn for 2025-26 and the Medium Term Financial Strategy (MTFS) update. This item was presented by the Managing Director of ESPO and the Consortium Treasurer. The report indicated that the 2025/26 financial outturn was a record year, with a surplus of £8.3m. The expected dividend pool for members was £6.2m, with individual allocations linked to service utilisation. The report also detailed the sales and margin performance, noting that total sales were £86.4m, £6.0m below budget, reflecting the contraction in the educational supplies market. However, margin performance remained resilient. Expenditure was £2.3m favourable to budget, due to strong financial discipline and cost control.

The report also included an update on ETL and Eduzone, noting a mixed performance for ETL due to international market uncertainties, but a positive combined surplus for both entities. Operational progress and staffing updates were also part of this comprehensive financial review.

The committee was recommended to note the financial outturn for 2025/26 and approve the budget for 2026/27.

Other Items

The agenda also included standard procedural items such as the appointment of a Chairman and Vice-Chairman, Chairman's Announcements, and the appointment of a Consortium Secretary. The minutes of the previous meeting held on 31 March 2026 were also scheduled for confirmation. The committee was to be advised of any urgent items and consider any items referred by the Finance and Audit Subcommittee. The date of the next meeting was also to be confirmed. The public were likely to be excluded from the consideration of certain remaining items in accordance with Section 100(A)(4) of the Local Government Act 1972, as these would involve the disclosure of exempt information.