The ESPO Management Committee met on Wednesday 26 November 2025 to review the 2024/25 financial statements and annual governance statement, and to receive an update on the Chief Officer's progress. The committee approved the 2024/25 financial statements, the annual governance statement, and a dividend pool of £5.4 million.

2024/25 Financial Statements and Annual Governance Statement

The committee reviewed and approved the 2024/25 financial statements, which showed a trading surplus of £7.4 million, exceeding the budget by £0.3 million. This strong performance was achieved despite challenges in the educational supplies market. The external audit resulted in a clean audit opinion, with no significant control weaknesses identified.

The committee also approved the 2024/25 Annual Governance Statement (AGS). The AGS confirmed that ESPO has a sound system of internal control and effective governance arrangements in place. A self-assessment of the governance framework indicated no significant concerns or key weaknesses, with areas for improvement being added to an action plan. The internal audit service provided substantial assurance that ESPO's control environment remained adequate and effective.

A dividend pool of £5.4 million was approved for payment to member authorities in December 2025. This distribution is based on ESPO's overall surplus and member usage, with £600,000 retained for property maintenance reserves.

Chief Officer's Progress Update

Kristian Smith, Chief Officer of ESPO, provided an update on the organisation's progress. Despite a contraction in the educational supplies market, ESPO had maintained strong performance, particularly in development areas, supported by competitive pricing and targeted growth strategies. Expenditure was reported to be £0.8 million below budget due to operational efficiencies and lower than budgeted pay awards.

ESPO was on track to deliver a full-year surplus of £7.5 million to £7.7 million, exceeding both the budget and the Medium Term Financial Strategy targets. Operationally, ESPO had processed and despatched over 200,000 order lines, achieving a pick rate of 36 against a target of 32, and maintaining excellent stock availability. Customer service performance was also strong, with an average call wait time of 1 minute 18 seconds and a 91% call answer rate.

The committee noted the ongoing challenges in the educational supplies market, with an approximate 4-5% contraction attributed to reduced school budgets. Discussions also covered mental health support for staff, with monitoring of sickness data and the availability of mental health first aiders.

The committee resolved to note the Chief Officer's update and requested a breakdown of customer service call reasons in the form of a pie chart.

Other Items

The date of the next meeting was confirmed as 25 March 2026. The committee also resolved to exclude the press and public from the remaining items of business due to the likely disclosure of exempt information. Supplementary information relating to the Chief Officer's progress update, ESPO's energy offering, and ESPO's digital marketing and SEO approach were considered in private session.