board)meeting) 9october2014 ) · business)development)–pillar)2) sales we secured the optimise...
TRANSCRIPT
CRAIGAVON INDUSTRIAL DEVELOPMENT ORGANISATION
BOARD MEETING 9 October 2014
1
1. Chairman’s Introduc2on
2. Minutes of Previous Mee2ng
3. CEO Report
4. Ma@ers to be discussed a. Appointment of Company Auditors b. Recruitment of new resource to replace Business Development Execu2ve c. ENI Members Agreement d. Legal structure report from AR Wylie (for info, hold to next mee2ng)
6. A.O.B.
7. Board Closed Session
AGENDA
2
Chief ExecuCve’s Report
3
Key Business Objectives
4
ObjecCve Status against goal
Finances – achieve an opera2ng surplus of £100k
Strong performance from property and the extension to Steps, RSI and the winning of the Op2mise Programme means we are forecas2ng to achieve this target. YTD August surplus of £92k aZer interest and deprecia2on Cash on hand 31 Aug £403k
Programmes – iden2fy new income sources post Steps amoun2ng to £100k from Steps to Success or ANO Programmes
We have summarised our business development sales and proposals on slide 10 . Op2mise at £14k has been secured and we have proposals for Steps to Success and Erasmus Programme amongst others. The target is unlikely to be achieved , although overall programme income ahead mainly due to Steps
Key Business Objectives
5
ObjecCve Status against goal
Property – achieve average occupancy levels of 90% across Centres 1, 2 & 3 for second half of year
Good management and conversion of enquiries has delivered occupancy levels above budget for all Centres. Actual 93% v 89% budget.
Increase the number of Pillar 3 ac2vi2es and event a@endees by 10% in year
Making good progress, currently ahead of last year. We will be running Tech Start (new investment support to innova2ve disrup2ve technology start ups e.g. Brew Bot) and Social Shake Up events in next month.
Financial Report
6
Craigavon Industrial Development Organisation(Company Limited by Guarantee)
Consolidated Profit and Loss Account for the period ended 31st Aug 2014
Actual Budget Budget Forecast ActualApr -‐ Aug 14 Apr-‐ Aug 14 Apr'14 -‐ Mar'15 Apr'14 -‐ Mar'15 Apr'13 -‐ Mar'14
5 mths 5 Mths Budget 12 months 12 Months 12 months£ £ £ £ £
TurnoverRental & Service Income -‐ Centre 1 40,731 38,312 92,211 99,475 84,402Rental & Service Income -‐ Centre 2 52,003 45,646 106,376 130,127 110,802Rental & Service Income -‐ Centre 3 43,823 47,438 114,310 104,190 106,458i2 Innovation Centre 68,434 60,806 148,734 156,350 119,379Cafe, Conferencing & other services 7,657 8,582 20,953 18,222 22,407Programme Income 190,868 120,327 308,886 329,801 454,021Other Income - sponsorship, Interest etc 3,168 2,591 5,430 6,008 14,954
406,683 323,702 796,900 844,173 912,422
Net operating expensesProgramme costs 100,219 92,202 235,675 209,528 269,506Property costs 67,860 78,728 165,684 163,645 184,597Administration Costs 109,153 118,228 286,386 285,018 254,830Depreciation net of deferred credits 21,645 22,926 55,022 52,167 55,941
298,876 312,084 742,767 710,358 764,874
Operating profit before exceptional items 107,807 11,618 54,134 133,815 147,547
Interest Payable & similar charges 16,111 15,979 37,960 39,016 42,899
Loss (-‐)/Profit on ordinary activities before taxation 91,696 -‐4,361 16,174 94,799 104,649
Chief Executive’s Report
7
Craigavon Industrial Development Organisation(Company Limited by Guarantee)
Consolidated Balance Sheet at 31st August 2014Budget Forecast Actual
Apr -‐ Aug 14 Apr -‐ Aug 14 Apr'14 -‐ Mar'15 Apr'14 -‐ Mar'15 Apr'13 -‐ Mar'145 months 5 Mths Budget 12 months 12 months 12 months
£ £ £ £ £
Fixed AssetsTangible Assets 2,754,913 2,758,967 2,694,122 2,696,978 * 2,793,784
Current AssetsDebtors 175,147 165,000 105,000 105,000 146,380Cash at Bank and in hand 403,208 303,585 337,617 414,443 383,227Deferred Income 0 0 0 0 0
578,355 468,585 442,617 519,443 529,608
Creditors: Amounts falling due within one year 205,237 195,000 150,000 150,000 227,398
Net current Liabilities 373,118 273,585 292,617 369,443 302,210
Total Assets less Current Liabilities 3,128,031 3,032,552 2,986,739 3,066,421 3,095,994
Creditors: Amounts falling due after one yearDeferred Tax 0 0 0 0 0Loans 683,078 683,655 652,939 653,995 715,087Hire Purchase 2,881 2,881 0 0 7,139Deferred Capital Grant 1,728,094 1,728,094 1,695,346 1,695,346 1,751,485
2,414,053 2,414,630 2,348,284 2,349,340 2,473,711
Net Assets 713,978 617,922 638,455 717,081 622,282
Capital & ReservesP&L Account 713,978 617,922 638,455 717,081 622,282
Programme Revenue Report as at 31st August 2014
8
Business Development – Pillar 2
SALES We secured the Optimise Programme (value £14k) to support Dungannon Enterprise Centre in recruiting and rolling out support to SMEs for Digital Marketing. RSI has been extended to March 2015 Strong performance from Steps has helped to produce the £95k contribution forecast for year end PROSPECTS Steps to Success value £0-£100k – conversion status 10% Decree Programme under Erasmus. Proposal submitted value - £65k conversion status 60% CEO consultancy support to La Grange value £2k – conversion status 50% .
Following the business services group mee2ng, various themes emerged of interest to CIDO.
• Start up program for young entrepreneurs on placement with/shadowing our tenants under the Erasmus Plus programme.
• Overcoming barriers to self-‐employment and providing skills gap training to young people under Erasmus Plus programme.
• An innova2on collabora2on cross border scheme with Universi2es and ins2tutes such as DKIT in the South and Highlands and Islands in Scotland to share best innova2on prac2ce and support under INTERREG V.
• Posi2oning micro businesses within larger organisa2ons in Europe under INTERREG V or COSME.
• Helping CIDO clients in further developing innova2ve ideas capable of breaking into interna2onal markets as we currently have a few clients with new product developments. Under Horizon 2020.
• Iden2fying growth poten2al in SMEs and developing a growth plan for staff/managers in organisa2ons. Under Horizon 2020.
EU Themes
CIDO welcomed DelegaCon La Grange
We recently facilitated a visit by a delegation from La Grange. CIDO received highly positive feedback from all.
Business Services
UPCOMING SEMINARS AND EVENTS 7th October 2014 Techstart NI - Techstart NI provides support for seed and early stage technology businesses and university spin-outs. One stream of support available is the Proof of Concept fund and TechStart NI will be providing an information session for relevant businesses. 22nd October 2014 Social Shake Up - led by Daryl Conway, Purple Dot this session will cover Facebook, Twitter, LinkedIn, Pintrest - Who uses them and how to communicate and engage visually. Dealing with the Negative - Address publically, deal with it privately.
MaSers to be discussed by Board
Auditors – AR Wylie and Co appointed for a 2 year term, year ends 2013 and 2014. Propose extend for a further year and re tender/consider further after that. ENI Members Agreement – circulated to Board members previously, comments of board members to be gathered Legal Structure report from AR Wylie and Co – paper to be circulated asap. AR Wylie were commissioned arising out of the Governance Review to review the current legal structure of CIDO, consulting with our solicitors, to advise on options, advantages, disadvantages etc for the future Appointment of replacement Business Development Executive
Governance Review Update
14
15
Time chart
CIDO ACTION PLAN FOR IMPROVEMENT March to December 2014 deadlines for implementation Ref March April May June July August September October November December
Board date 20-Mar 24-Apr 22-May 12-Jun No Meet 07-Aug 18-Sep 16-Oct 13-Nov 11-Dec
1. Strategic leadership and performance
The board, together with the Chief Executive, should develop a Strategic Plan for CIDO covering
the next three to five year period. 2.50
Discuss how board wishes to
prepare
Background review and
discussion of vision
Draft plan to be
reviewed
Board to agree final
plan
2. Ensuring effective control
Scheme of delegation and Schedule of Matters Reserved for Board / Company Secreatry to draw
up Standing Orders 3.4, 4.21 Discussion Finalised
Terms of reference for sub committees 3.5, 4.17,
4.18 Discussion Finalised
Staff performance review process 3.60 To be finalised
Chief executive performance review process 3.70 To be finalised
Company Secretary position 5.80 Discussion Finalised
3.Board (and director) effectiveness and development
Board Code of Conduct 4.25, 7.4 Finalised
Size and Composition of Board 4.13 Feedback to Chair letter Finalised
Position of Advisory Board 4.16 Discuss Established
of "yes"
Chairman one on one meetings with board 4.26 Finalised
Board skills matrix 4.14 Draft to be
tabled Finalised
Determine legal position of Councils 4.15 Finalised
Template Board Reports 4.22, 6.5,
6.7 Initial discussion Drqft format
implemented Final format to map
to Strategic Plan
Publish board attendance in annual report 4.27 Finalised
16
CIDO ACTION PLAN FOR IMPROVEMENT March to December 2014 deadlines for implementation Ref March April May June July August September October November December
Board date 20-Mar 24-Apr 22-May 12-Jun No Meet 07-Aug 18-Sep 16-Oct 13-Nov 11-Dec
4. Legal and compliance
Review Memorandum and Articeles 5.50 Revised draft
proposed Finalised
Register of Members 5.60 Legal feedback and discussion Finalised
Policies and procedures 5.70 Finalised
5.Audit, risk and financial management Risk Management Policy and Risk Register 6.60 Produce Draft Finalised
6. Integrity and behaviours Formal Conflicts of Interest Policy 7.50
Produce Draft Finalised
7. Openess and accountability Identify stakeholders and planned engagement
plan 8.30 Draft Finalised
FOR INFORMATION
17
Steps to Work Programme • Steps to Work Programme has now ended and we are currently in the transi2onal period.
• Discussions have been ongoing with REED in Partnership in rela2on to working with them in the Southern Region to assist people into Self Employment.
• The Steps to Success Programme is due to go ‘live’ on the 20 October 2014.
• However there are unconfirmed rumours that the self employment op2on will not be part of the Steps to Success Programme and we are awai2ng further clarifica2on.
18
Programme sta2s2cs are as follows: 2010/11 2011/12 2012/13 2013/14 2014/15
Number of referrals 411 471 543 553 97 Referrals to Test Trading 95 174 113 177 108 No. comple2ng Test Trading 77 152 154 123 81 No. entering sustained employment 35 77 81 67 41 *Current financial year to 30.09.14
Regional Start Programme
Ø Target for 2014/2015 -‐ 137 completed business plans
Ø Nov – June 116 business plans completed and approved
Ø Regional Start has been extended un2l 31st March 2015
EEP² to date
Ø Secured funding for an additional course
Ø Course 7 - mentoring ongoing
Ø Course 8 - training just completed
Ø EEP2 all courses to be completed by 30th Dec
14
Exploring Enterprise² Programme
iOTA
Client numbers to date: Strand A – For individuals or businesses without any experience of innovation or who want to explore innovation - 13 clients who receive a combination of one to one mentoring to produce an action plan, clinic and/or training.
- Strand B – For businesses who are innovating or have an idea that would benefit from in-depth mentoring
- 5 clients who are currently receiving mentoring to progress their innovative idea.
OpCons
SEED Entrepreneurship Programme - Options This programme is for middle/senior managers in the public and private sectors in Armagh, Banbridge, Craigavon; Newry City, Mourne and Down and North Down Council areas who may be facing redundancy Options will be run over 2 waves with 3 clients from Craigavon on each wave. The programme was launched in June at the Armagh Palace Stables with the first seminar being held the same month at the Market Place Theatre. June 2014 Launch Options Seminar and Networking Event September – December 2014 Training - 7 x training sessions (one in each council area) Mentoring – 8 hours per client Best Practice Visits( eg – Franchise Show) x 2 January – April 2014 Training - 7 x training sessions (one in each council area) Mentoring – 8 hours per client Best Practice Visits x 2 June 2015 Final Presentation Event
Business Services
CIDO Promotional Video
The CIDO Promotional Videos have now been completed.
They will be used across all our promotional platforms.
They can be found on our YouTube Channel
https://www.youtube.com/channel/UCum6_cnBt9xIgDGuui7Ff9A
CEO AcCvity Report July – October 2014
Date
AcCvity
30/07 Staff mee2ng – CIDO Board Prep
31/07 Staff mee2ng – CIDO Board Prep
01/08 Staff mee2ng – CIDO Board Prep
04/08 Staff mee2ng – CIDO Board Prep
05/08 Staff mee2ng – CIDO Board Prep
06/08 Mee2ng M Black / Arnold Hatch Staff mee2ng -‐ CIDO
07/08 Board Mee2ng & Admin in CIDO
08/08 Staff mee2ngs CIDO Video Recording in CIDO Mee2ng Gordon Gough – Discuss ENI / CIDO
11/08 Staff mee2ng – CIDO Mee2ng with Sister City to plan visit in CIDO
12/08 Chartered Manager Training – Next Level
13/08 Staff mee2ng – CIDO Business development visit to Dungannon – secured Op2mise
14/08 Mee2ng M Black Staff mee2ng -‐ CIDO
CEO Activity Report July – October 2014
Date
AcCvity
15/08 Staff mee2ng CIDO – Governance / Strategy
18/08 – 20/08 HOLS
21/08 Board / Budgets in CIDO
22/08 Board / Budgets in CIDO
25/8 Board / Budget in CIDO
26/8 CIDO Staff Mee2ngs Governance
27/8 CIDO IIP Review and Mee2ngs
28/8 CIDO – STEM Mee2ng and Programmes Research for Business Development
29/8 CIDO Admin / Mee2ngs Business Development Mee2ngs / Canice Consul2ng / East Belfast Enterprise
01/09 CIDO Admin / Mee2ngs Strategy Prep at Stormont Interview Ronan
02/09 Host visit of La Grange to CIDO Mee2ngs CIDO
03/09 CIDO Mee2ngs A@end Mr S Gardiner’s brothers funeral
04/09 Mee2ngs CIDO review RSI etc with Peter Morton. Visit Lappin Engineering to inves2gate support needed (A Hatch referral)
CEO Activity Report July – October 2014
Date
AcCvity 05/09 Visit to Fermanagh Enterprise to inves2gate Steps to Success and possible strategic alliances
08/09 CIDO Mee2ngs / Admin 09/09 CIDO Mee2ngs / Admin
Belfast with Concepta mee2ng with REED in Partnership on Steps to Success. To prepare and submit tender document post mee2ng.
10/09 CIDO Mee2ngs with Canice Consul2ng on Erasmus and Invest NI John Hood on Food Incuba2on 11/09 Mee2ng Momentum on Erasmus Proposal 12/09 A@end Stormont CMI Awards
Mee2ngs – CIDO 15/09 Staff Mee2ng in CIDO
Mee2ng of Brownlow / Mayfair LEAs with CBC to update 16/09 Mee2ngs CIDO
A@end Craigavon Means Business Event Stormont 17/09 Propety Mee2ng in CIDO and Staff Mee2ngs 18/09 A@end Social Economy Conference. Possible work with Coventry University Business Start Trade It
Project. To be followed up. 19/09 Mee2ng Audrey McKeown on EU Programmes. In CIDO mee2ngs and IIP Mee2ng Belfast 22/09 In hospital for tests 23/09 A@end NIFDA Conference
Business Services Mee2ng and Staff in CIDO 24/09 Staff mee2ngs – CIDO
A@end consulta2on on new ABC Council in Civic Centre 25/09 Mee2ng M Black
Board prep Staff Mee2ngs in CIDO 26/09 Staff Mee2ngs Admin in CIDO
A@end IOD Strategy Commi@ee
CEO AcCvity Report July – October 2014
Date
AcCvity
29/09 Staff Mee2ng & Board Admin in CIDO
30/09 A@end All Island Innova2on Conference UCD 01/10 Board Prep and Staff Mee2ngs in CIDO
02/10 A@end EU Briefing in Signal Board Prep Staff Mee2ngs in CIDO
03/10 AGM / Board Prep Staff Mee2ngs in CIDO
28
Chief ExecuCve’s Report
Statement of Cash Flows
Actual Budget Budget Forecast ActualApr -‐ Aug 14 Apr-‐ Aug 14 Apr'14 -‐ Mar'15 Apr'14 -‐ Mar'15 Apr'13 -‐ Mar'14
Cash Flow from Operating Activities 5 mths 5 Mths Budget 12 months 12 Months 12 months
Net Income 91,696 -‐4,361 16,174 94,799 104,649
Adjustments to reconcile net income tonet cash provided by operating activities
Depreciation and amortization 21,645 22,926 55,022 52,167 55,941Investment Income -‐705 -‐622 -‐1,492 -‐1,575 -‐2,011Interest Expense 16,111 15,979 35,489 36,545 41,241Operating Profit before working capital changes 128,747 33,922 105,193 181,935 199,819
(increase)/Decrease in accounts receivable -‐28,767 -‐18,620 41,378 41,380 -‐34,330increase/(Decrease) in accounts payable -‐29,210 -‐38,739 -‐77,398 -‐77,399 72,985Cash generated from operations 70,770 -‐23,437 69,173 145,917 238,474
Net cash from operating activities 70,770 -‐23,437 69,173 145,917 238,474
Cash Flow from Investing ActivitiesCaptial expenditures -‐6,166 -‐11,500 -‐11,500 -‐11,500 -‐69,781Interest Received 705 622 1,492 1,575 2,011Net cash used in investing activities -‐5,461 -‐10,878 -‐10,008 -‐9,925 -‐67,770
Cash Flow from Financing ActivitiesLoan payments -‐39,738 -‐39,738 -‐95,371 -‐95,371 -‐95,371HP Payments -‐5,590 -‐5,590 -‐9,405 -‐9,405 -‐26,037Net cash used in financing activities -‐45,328 -‐45,328 -‐104,776 -‐104,776 -‐121,408
Increase / (Decrease) in cash 19,981 -‐79,643 -‐45,611 31,216 49,297
Cash & Cash equivalents at beginning of the period 383,227 383,227 383,227 383,227 333,930Cash & Cash equivalents at end of the period 403,208 303,584 337,617 414,443 383,227
• Over the period Mar 14– Aug 14 the following trends occurred • Centre 1 monthly occupancy increased from 88% - 98% • Centre 2 monthly occupancy increased from 79% to 91% • Centre 3 monthly occupancy decreased from 94% to 92% • I2 monthly occupancy increased from 91% to 97%
• During Aug 14 a total of 91 tenants leased 75,038 sq.ft. over all sites, a combined average occupancy of 94%
• 9 Vacant units during Aug 14 totalled 6,779 sq.ft. with a potential income of £29k approx. • Centre 1 – 1 units • Centre 2 – 4 units • Centre 3 – 3 units • i2 – 1 units (suite 3)
20%
30%
40%
50%
60%
70%
80%
90%
100%
110%
Apr-14 May-14 Jun-14 Jul-14 Aug-14
Occu
panc
y %
Months
C1 occupancy C2 occupancy C3 occupancy I2 - Occupancy
Occupancy Trend Analysis Apr’14 – Aug’14
Property Occupancy & Income Report (Aug 14)
• Rental income for the period Apr – Aug 14 was £9.047 above budget.
• I2 occupancy includes Moy Park who commenced a 5 year tenancy on 5th August 2013. i.e. 19 suites, 4,525 sq.ft @ £110,000 p.a. • Occupancy targets were above budget for all centres • Based on the current occupancy levels it is forecast that income for the year 2014 - 2015 will be £500,087, £38,457 above budget of £461,631. • The income over all sites is also expected to be affected by a small reduction in the sq.ft. rate achieved due to special deals being offered to new tenants as start up packages, e.g. First month free , 50% reduction etc.
Rental Income Occupancy as at 31st August 2014Annual Forecast for period Apr'14- Mar'15 at Current Occupancy Level
Actual Actual Budget Budget Variance Variance Forecast Forecast Budget Budget Variance VarianceIncome % Ave.occupancy % Ave. occupancy % Ave. occupancy
C1 Rental 31,897 97.3% 29,845 94.8% 2,052 2.5% 76,936 97.7% 71,793 95.0% 5,142 2.7%C2 Rental 41,826 85.0% 36,828 75.2% 4,998 9.8% 105,941 88.5% 88,386 76.9% 17,555 11.6%C3 Rental 31,488 95.7% 33,952 95.3% -2,464 0.4% 76,799 93.7% 81,582 95.4% -4,783 -1.7%I2 Rentals 63,603 93.9% 59,506 91.2% 4,097 2.7% 161,480 95.8% 142,815 91.2% 18,665 4.6%I2- Hot Desk 1,385 1,300 0.0% 85 2,435 0 2,435I2 - Virtual Package 0 0 0 3,120 -3,120
170,199 93% 161,431 89% 8,768 423,590 387,696 35,894
C1 Service charge 8,835 8,467 368 21,456 20,368 1,088C2 Service charge 9,951 8,818 1,133 25,354 21,163 4,191C3 Service charge 12,264 13,485 -1,222 29,687 32,403 -2,716I2 Rentals 0 0 0 0 0 0I2- Hot Desk 0 0 0 0 0 0I2 - Virtual Package 0 0 0 0 0 0
31,050 30,770 279 76,497 73,934 2,563
C1 Rental & Service chg income 40,732 38,312 2,420 98,392 92,162 6,231C2 Rental & Service chg income 51,777 45,646 6,131 131,295 109,549 21,746C3 Rental & Service chg income 43,752 47,438 -3,686 106,485 113,985 -7,499I2 Rentals 63,603 59,506 4,097 161,480 142,815 18,665I2- Hot Desk 1,385 1,300 85 2,435 0 2,435I2 - Virtual Package 0 0 0 0 3,120 -3,120Rental Income 201,249 192,202 9,047 500,087 461,631 38,457 NB
% Ave. occupancy% Ave.occupancy % Ave. occupancy
Programme AcCvity Report as at 31st August 2014
31
Programme Actual v Budget Comparison - Apr - Aug 14
Programme Analysis Income Costs2014/2015
Contribution Variance2013/2014
Contribution
Steps to Work/Inbiz 154,742 67,760 86,982 187,238Budget 44,165 31,213 12,952 74,030
Regional Start 13,395 14,197 -‐801 -‐4,681Budget 13,272 13,579 -‐307 -‐495
Tradelinks 3,589 3,307 282 176Budget 5,483 2,550 2,933 -‐2,651
Explore Ent'prise 12,663 10,514 2,149 2,220Budget 13,308 10,958 2,349 -‐200
STEM 0 315 -‐315 0Budget 0 0 0 -‐315
Sundry Programme 0 1,580 -‐1,580 -‐3,000Budget 0 0 0 -‐1,580
SEED Programme 0 71 -‐71 -‐300Budget 2,160 1,402 758 -‐829
ANO Programme 0 0 0Budget 30,600 23,255 7,345 -‐7,345
IOTA 6,478 4,395 2,083 2,230Budget 11,340 9,245 2,095 -‐13
Actual Totals 190,867 102,140 88,727 183,884Budget 120,327 92,202 28,125 60,602
Main Forecast AssumpCons 2014/15
Property occupancy levels across all sites will be broadly maintained at current levels until the year end. Budget for Steps to Work was set based on information provided by the Lead Contractors that numbers onto the programme would be less than actually were. These numbers significantly increased in May 2014. The original budget was set on low client numbers and less ‘quality’ and therefore we did not anticipate the number of clients who would move into sustained self employment and therefore be eligible to claim the Output Related Fee funding. The numbers of test trading starts actually doubled from what was originally forecast at the outset of the budget for the year. The c£138k of ANO Programme income for the year will not be achieved and has been removed from this forecast. RSI will finish officially March’15, Exploring Enterprise December’14 and Tradelinks has already ended all ENI Programmes.