Agenda item

To consider a report (copy attached) by the Interim Head of Community Support Services and the Operational Service Manager to provide an overview of the current performance of Cefndy within this financial year and the market conditions within which it is operating.

11:15 a.m. – 11:45 a.m.

The Lead Member for Health and Social Care, Councillor Elen Heaton, introduced the Cefndy Performance Report 2022-23 (previously circulated).  The report provided an overview of the current performance of Cefndy within the financial year 2022-23 and the market conditions within which it was operating.

It was confirmed that Cefndy manufactured various living aids and had been in existence for approximately 40 years.  Many staff had worked in Cefndy for many years with the average length of service being 17 years.

The Interim Head of Community Support, Ann Lloyd, informed members that reports had been presented to Scrutiny over a number of years.  There had been significant disruption and cost volatility to global supply chains since the start of the Covid pandemic which had increased Cefndy’s competitiveness against imports.  This had impacted positively with sales increasing with existing customers and had seen some additional business with new customers.

Cefndy had experienced some unforeseen budget pressures during the current financial year including additional energy costs, higher than expected salary increases and emergency building repairs.

Work had taken place over the previous 18-24 months to assist in the stabilising of the service. 

Feedback received from one of the largest customers of Cefndy was that they should be building on the fact that they were a British manufacturer, and delivering social value.   As a result of this feedback, the Principal Manager, Strategic Marketing, had held a session to support the team in developing an action plan around increasing business to business trade with existing customers.  Officers were also looking at opportunities to re-ignite relationships with previous customers based on the current market opportunities and ability to compete (on a range of products) with imports.

As there were currently some vacant posts within Cefndy, this was giving the opportunity to review the business model.

Work was taking place as the building needed significant repairs carried out.  An Extraction system needed to be replaced to reflect a change in the Health and Safety legislation.  Some of the equipment was past its serviceable life with spare parts no longer available.   A business case was being developed to take to the Strategic Investment Group for £400k.

As the Appendix to the report contained confidential information Councillor Carol Holliday proposed the meeting move to Part II business for the remainder of the discussion, Councillor Andrea Tomlin seconded this proposal.  The Committee:

EXCLUSION OF PRESS AND PUBLIC

RESOLVED that under Section 100A of the Local Government Act 1972, the Press and Public be excluded from the meeting for the following item of business on the grounds that it would involve the likely disclosure of exempt information as defined in Paragraph 14 of Part 4 of Schedule 12A of the Act.

Responding to members’ questions, the Lead Member and officers:

·       advised that whilst the report stated Cefndy had five large customers with whom it was currently exploring development opportunities, it did business with in excess of 100 different individual customers, including other local authorities

·       advised that Cefndy provided valuable employment opportunities for disabled individuals.  Cefndy differed to the Council’s Work Opportunities Services as those employed at Cefndy were Council employees and therefore covered by the Council’s terms and conditions of employment  

·       gave details of the unexpected one-off costs experienced during the course of the current financial year, other unforeseen pressures encountered and the measures taken to address them as well as potential future risk mitigation measures

·       advised that all opportunities were explored with a view to developing and sustaining the business for the future, including potentially increasing its partnership working opportunities with Llandrillo College once its new site in Rhyl, located near the Cefndy premises, was open

At the conclusion of an in-depth discussion the Committee:

Resolved:  subject to the above observations to –

(i)   receive the performance, sales and costs analysis presented for Cefndy for the 2022/23 to date, acknowledging the unforeseen budget pressures it has encountered and the work undertaken to mitigate their effect;

(ii)  support the work undertaken at Cefndy and the achievements of the business model operated within the Council’s Social Care Services;

(iii)                  request that an Information Report be provided to the Committee following the end of the current financial year detailing Cefndy’s end of year performance analysis for 2022/23;

(iv)    request that Cefndy’s annual performance report for the 2023/24 financial year, including an analysis of the delivery of its financial, business and social well-being objectives, be presented to the Committee during the summer of 2024; and

(v)  request that a visit be arranged for all Committee members to Cefndy to see the manufacturing facility, the production work undertaken there along with the employment opportunities on offer and to meet the workforce.