The Shareholder Committee met on Thursday 30 July 2026 and was satisfied with the information presented regarding the ongoing management of the group of companies. The committee noted updates on the consolidated provisional outturn position, Quarter Four performance data, the 30-year business plan, the Community Benefit Society conversion status, the Housing Improvement Plan, and development pipeline updates.

Managing Director Overview

The committee received an overview of the group of companies' strategic position and key operational matters for the financial year 2025/26. This included updates on the consolidated provisional outturn position, Quarter Four performance data, the 30-year business plan working model, the Community Benefit Society conversion status, the Housing Improvement Plan, and development pipeline updates.

The Shareholder Committee resolved that it was satisfied that the information presented provided all necessary assurance as to the effective ongoing management of the group of companies. The committee was invited to raise any questions regarding the strategic positioning of the organisation against its objectives for delivery.

Consolidated Provisional Outturn Position 2025/26

The committee was informed that the financial figures presented for the 2025/26 financial year were as close as possible to the statutory accounts at that stage, and an unqualified audit opinion was anticipated upon completion of the audit process. The audit had progressed smoothly with minimal queries raised, which was attributed to the diligent work of Kajal and her team. Members expressed their appreciation for this achievement, noting that the lack of detailed challenge on the accounting information indicated a high level of confidence in the robustness of the financial reporting.

Quarter Four Performance Data

Performance data for the fourth quarter was reviewed, and members were advised that it continued to follow the positive trends reported in previous quarters, with no significant issues requiring escalation. The committee noted this update without further comment.

30-Year Financial Business Plan Working Model

The committee considered the newly developed 30-year financial business plan and working model. It was explained that the plan had been approved by both the respective Boards and the Holdings Company and demonstrated that Loddon Homes remained financially sustainable under its current development programme and operating model. This model will now form the basis for future budget setting and financial monitoring, serving as a framework for measuring progress. The plan is based on confirmed development assumptions, establishing a realistic baseline, with future iterations to incorporate additional development pipeline opportunities as they become more certain. Further work will be undertaken to test the model, assess risks, and develop mitigation measures.

Members welcomed the plan, acknowledging the substantial effort involved in its creation. They noted that the plan demonstrated the business's resilience and viability across various scenarios, providing assurance for its long-term sustainability. The 30-year planning horizon was explained as standard practice within the social housing sector and aligned with regulatory expectations for financial viability assessments, also mirroring the Council's Housing Revenue Account's 30-year planning basis. The most significant current business risk identified was related to interest rate volatility and market uncertainty stemming from ongoing geopolitical tensions, particularly in the Middle East. The committee expressed gratitude for the significant technical and financial work undertaken, noting the development of a robust, credible, and transparent financial framework that increased confidence in the organisation's long-term direction.

Community Benefit Society Conversion Status

An update was provided on the proposed conversion of Loddon Homes to Community Benefit Society status. The proposal had received approval from the Board and Holdings Company, with necessary documentation completed. A submission to HMRC to initiate the formal conversion process was anticipated imminently, followed by discussions with the Regulator of Social Housing regarding the transition to a not-for-profit structure. Officers clarified that this conversion would enhance the company's competitiveness in the development market and support the delivery of more affordable housing. Notably, the removal of Stamp Duty Land Tax liabilities would strengthen the organisation's competitive position and financial capacity. The new structure would also facilitate the reinvestment of surpluses into future development and the long-term maintenance and improvement of housing stock, thereby strengthening the company's financial sustainability and increasing affordable housing delivery across the Borough.

Housing Improvement Plan and Development Programme

Updates were provided on current development activity and progress against the five-year development strategy. No significant changes were reported, with progress broadly in line with agreed targets, and further positive developments were expected in the first quarter of the 2026/27 financial year. The committee also considered the Housing Improvement Plan, developed collaboratively by Loddon Homes and Berry Brook Homes in partnership with the Council's Housing Service, aimed at enhancing resident services. The Chair highlighted the increasing alignment between the housing companies and the Council's Housing Revenue Account services, noting a shift towards a partnership and complementary relationship. Members welcomed the progress in bringing forward Section 106 development opportunities, recognising their contribution to delivering additional affordable housing.

The committee concluded by reflecting on the considerable progress made across the housing companies, noting strengthened governance, improved financial reporting, the development of a long-term business planning framework, the progression of the Community Benefit Society conversion, and a more integrated approach to housing delivery. The Chair expressed assurance that the organisation was moving in the right direction and thanked officers for their work.

The Shareholder Committee resolved to satisfy itself that the information presented provided all necessary assurance regarding the effective ongoing management of the group of companies. The committee was invited to raise questions on the organisation's strategic positioning against delivery objectives and was asked to note the updates on the consolidated provisional outturn position, Quarter Four Performance Data, 30 Year Business Plan working model, Community Benefit Society Conversion status, Housing Improvement Plan, and Development pipeline updates.