Cambridgeshire County Council has turned to Julia Gregory, recognised two years with a lifetime achievement accolade at the National Businesswomen Awards, to chair its wholly owned housing company This Land Ltd. Ms Gregory was appointed, on an interim basis, by the county council’s shareholder committee this week.
As if proving the adage if you want something done give it to the busy person, Ms Gregory has accepted the role just 2 months after agreeing to become chair of the Greater Essex Business Board.
She has an impressive track record and has been a director of This Land for nearly 2 years and has chaired its environmental, social and governance committee as well it its nominations and remuneration committee.
Her previous appointments have included helping to develop Gatwick and Stansted airports, and she is also a director of Corserv – and has served as interim chair – which operates with Cornwall Council as its major shareholder.
The company’s assets include Cornwall Airport Newquay and Cormac, the latter employing nearly 1,000 people and manages 7500km of Cornwall’s highways as well as delivering major construction, civil engineering, and highway schemes.
Cambridgeshire County Council slips further £6.3m to its housing company
Julia is a Fellow of the Chartered Institute of Highways and Transportation (CIHT) and is also a non-executive director for Gateway 14 Ltd and Milton Keynes Development Company and chair for Home-Start Hertfordshire, a charity that supports children and families to ensure they get the best start in life
She has acted as expert judge for the National Construction Awards for over 8 years.
Julia was also appointed last December as chair of the new programme board to replace Frimley Park Hospital in Surrey which built in the 1970s using Reinforced Autoclaved Aerated Concrete (RAAC), which makes up around 65 per cent of the current building.
Her appointment as interim chair of This Land Ltd was confirmed on February 26 following a recommendation from Michael Hudson, executive director of finance and resources of Cambridgeshire County Council.
He said the board’s chair Jeremy Miller has been acting into the role for just over 12 months and has now taken the decision to step back from the duties as chair but to remain as a non-executive director.
“Discussions with the board have identified that one independent director would not want to take on the role and one (Julia Gregory) would be prepared to accept initially for an interim period,” he said.
“Julia has worked in both the private and public sector, including heading up a strategic development and infrastructure service within a county council. Julia has also been a board member on several other local authority trading companies, chairing one of those.
“As such Julia has a strong level of experience and skills set as well as a good understanding of the company, fellow board members and the leadership of the organisation.”
Mr Hudson added: “Going forward there is a recognition that there should be a continual review of the board’s capacity and skill set. As such the shareholder representative working with other colleagues and advisers is reviewing the size and make-up of the board and will report back to a future meeting of this sub-committee.”
In January, This Land Ltd published its annual accounts for the year ending March 31, 2024.
Some highlights:
1: Turnover for the financial year increased by 72% to £34.7m (2023: £20.2m).
2: House sales increased by 20% to £9.8m (2023: £8.2m) from the completion of 23 private homes (2023: 12 private and 21 affordable homes).
3: Land sales accounted for 72% of total revenue at £24.9m (2023: £12.0m) including the sale of one strategic land parcel at £20.7m.
4: Operating profit before finance cost was £0.8m compared to £3.5m operating loss in the previous financial year. Administrative expenses at £4.1m were in line with the previous year. At the end of the year the Group owned or controlled 2,724 homebuilding plots across 19 sites (2023: 2,878 plots across 19 sites) of which two were operational sales sites.
5: During the year, the company and Cambridgeshire County Council entered into an amendment and restatement deed in relation to the existing loan agreements and a consolidated loan facilities agreement relating to the Group. The new agreements retain the key financial terms of each loan including repayment dates and interest rates, while simplifying the management and operation of the loans.
As part of the transaction, the Group entered into new security agreements providing Cambridge County Council with fixed and floating charges over all assets and undertakings.
6: As at 31 March 2024 borrowings amounted to £113.8m (31 March 2023: £113.8m). For the year ended 31 March 2024 interest paid to Cambridgeshire County Council during the year totalled £8.6m (2023: £8.5m) with interest expensed to the statement of comprehensive income amounting to £8.5m (2023: £6.3m) with the balance capitalised into inventory.
In accordance with the structure of the new consolidated loan facilities agreement, no further interest will be capitalised to inventory, rather, future interest payments will be expensed to the statement of comprehensive income as incurred.
7: Since inception, the group has paid £43.0m in interest costs to its shareholder ‘providing unrestricted income to CCC to deliver much needed services to its residents’.
8: A full review of roles and responsibilities was conducted in December 2023, resulting in headcount being reduced by 28%. The resultant savings in administrative expenses will be realised during financial year 2025.
9: The Group paid finance charges to CCC amounting to £8,622,107 (2023: £8,489,700). At the year end, the Group owed finance charges in the sum of £337,134 (2023: £331,576) which is shown within amounts payable to parent entity and accruals.
At the year end, the Group had borrowings of £113,824,500 (2023: £113,824,500) owing to CCC. ‘These amounts are shown within loans with related parties. The borrowings outstanding are secured and will be settled in cash. No guarantees have been given or received.’
10: On 30 August 2024 the Company, other members of the Group and Cambridgeshire County Council entered into an amendment agreement supplemental to the Original Facilities Agreement dated 11 May 2023.
The amendment allows for an additional £5,900,000 available facility further to loan amounts already received to amendment date. Borrowings can be drawn down in 4 new loan instalments during FY25 in accordance with clauses as defined in the amendment agreement.
Interest is agreed at 7.1% with repayment due on the final repayment date of 28 February 2026 (or later if agreed with lender). The first instalment of £1,000,000 was drawn down on 10 September 2024, £1,000,000 was drawn down on 8 October 2024 and a further £2,000,000 was drawn down on 29 October 2024. On 14 October 2024
Strike Off applications were accepted by Companies House for the two dormant entities, This Land Asset Management Limited, and This Land Investment Limited.
Footnote: The shareholder committee met behind closed doors and refused to published the 2024/25 This Land Business Plan.
“It was resolved to approve the recommendations set out in the report,” the council reported afterwards.
