Fusion Assets Limited - Performance Monitoring Report to 31 March 2023 and Financial Performance 2022-23
North Lanarkshire Council · 12 May 2023
Back to Enterprise and Fair Work Committee — 12 May 2023 and its agenda
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North Lanarkshire Council Report Enterprise and Fair Work Committee Does this report require to be approved? ☐ Yes ☒ No Ref PH/SH/KY Date 12/05/23 Fusion Assets Limited – Performance Monitoring Report to 31 March 2023 and Financial Performance 2022/23 From Pamela Humphries, Chief Officer (Place) E-mail HumphriesP@northlan.gov.uk Telephone 07939 280710 Executive Summary This report provides details of the operational performance of Fusion Assets Ltd. (Fusion Assets) during 2022/23 (up to 31st March 2023), outlines a range of economic outputs and outcomes being delivered through this Arm’s Length Organisation (ALEO) and details key highlights achieved during 2022/23. The report also details the financial performance of Fusion Assets between April 1st 2022 and December 31st 2022, their overall current financial standing and future financial projections and the planned revisions to Articles of Association. Recommendations The Enterprise and Fair Work Committee is requested to: 1) Note the content of this report and the operational targets set for Fusion Assets during 2022/23 and performance against these to 31st March 2023 (as outlined in Appendix 1); 2) Note the financial performance of Fusion Assets (April 1st 2022 to December 31st 2022), their overall current financial standing and future financial projections as detailed in 2.3 onwards; 3) Endorse the key highlights achieved during 2022/23. 4) Note the work underway to review the existing company Articles of Association and agree that a further report, detailing the proposed changes to the Articles and seeking council consideration and approval of these will be submitted to this Committee in due course. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition statement (3) Maximise the use of our marketable land and assets through improved development in business and industrial infrastructure
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1. Background 1.1. Fusion Assets is a wholly owned subsidiary of the council. It focuses on delivering physical economic regeneration projects across North Lanarkshire and in particular industrial development – a market where there is currently limited speculative development. Unlike more traditional council owned property companies, Fusion Assets is more similar to an urban regeneration company whose role is focused on the redevelopment of vacant and derelict land and brownfield sites rather than commercial property management. 1.2. It should be noted that Fusion Assets does not receive an on-going or recurring management fee from the council for the delivery of services but rather uses grant funding from the council’s annual Vacant & Derelict Land Fund (VDLF) allocation from the Scottish Government as enabling investment for the acquisition and redevelopment of vacant and derelict land sites. In taking this forward, Fusion Assets has developed a unique and innovative development model where the value of acquired/remediated land sites, together with other loan funding and Fusion’s reserves, is used as equity to set up joint venture partnerships with the private sector that will fund and manage the commercial redevelopment of sites for industrial use. Once industrial units are complete and let/partially let, unless restricted by the terms and conditions of any grant funding, this asset is sold to a private sector investor with returns used to pay off loan funding and re-invested in future regeneration projects. 1.3. Fusion Assets’ operational and financial performance was previously considered by the former ALEOs and External Bodies Monitoring Sub Committee. Following changes to the council’s Scheme of Administration, responsibility for oversight of service delivery by arm’s length bodies now rests with the relevant service committee. The functions delivered by Fusion Assets on behalf of the council fall within the Terms of Reference of the Enterprise and Fair Work Committee. 1.4. In addition to performance monitoring by service committees, the Audit and Scrutiny Panel holds responsibility for ensuring the effectiveness of the administrative and financial governance of all of the council’s ALEOs (including Fusion Assets) whilst the Policy and Strategy Committee retains responsibility for considering the outputs from reviews by the council into its arm’s length delivery arrangements, including recommendations in relation to Best Value and potential future delivery options. 2. Report Operational Performance Indicators 2.1 Fusion Assets’ 2022/23 annual targets and performance indicators are shown in Appendix 1. These indicators have been developed to show this company’s contribution to North Lanarkshire’s wider economy as well as the council’s strategic priorities. 2.2 Appendix 1 also details the external funding leverage secured by this company in relation to completed industrial developments. Financial Performance Indicators Financial Performance 1 April 2021 to 31 March 2022 2.3 The company’s audited annual accounts to 31 March 2022 reports a projected net surplus of £0.510m. This has moved slightly from what was provisionally reported in
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November 2022. In respect of the underlying operational performance, this was a net surplus of £0.063m, which is a favourable variance of £0.213m on a net operating expenditure budget of £0.153m. Accounting adjustments resulted in additional £0.450m surplus, primarily due to impacts of updated land valuations. A summary is provided at Appendix 2 along with previous year comparator outturn position. Overall Financial Standing as of 31 December 2022 2.4 Appendix 4 gives an update on the overall financial standing of the company, as of 31st December 2022, together with further information and previous year’s comparator figures. As can be seen, a healthy current asset to liability ratio of 2.04 is reported which gives assurance the company has sufficient resources to meet its commitments. Financial Performance 1 April 2022 to 31 December 2022 2.5 The company has approved a 2022/23 operating budget with projected net operating cost of £0.135m, which is a decrease of £0.017m on the 2021/22 budget. This is primarily due to projected increased income of £0.026m partly offset by increased expenditure of £0.009m. For 2022-23 the company has been successful in securing VDLF funding via the council of £1.938m. 2.6 Based on their financial statements to 31 December 2022, Fusion Assets is currently projecting a minor underspend of £0.007m against budget. A summary is provided at Appendix 4 along with previous year comparator outturn position. 2.7 Reflecting the regeneration and project-based nature of Fusion Assets, the company’s project (capital) development expenditure is monitored cumulatively with spend on all projects fully tracked back to each project’s inception. The summary financial position of the projects is outlined in table 1 below. Table 1 – Capital development expenditure Budget Actual Projection Variance (Budget v Projection) £ £ £ £ Expenditure (VDLF & Non VDLF) (19,142,930) (17,893,474) (19,443,221) (300,292) Income (VDLF & Non VDLF) 23,631,295 17,517,817 24,324,483 693,188 Net (Cost)/Surplus 4,488,365 (375,657) 4,881,261 392,896 2.8 As outlined above, cumulative expenditure of £19.143m has been approved by Fusion Asset’s board, which will be met from budgeted income of £23.631m, a combination of VDLF grant, Regeneration Capital Grant funding, anticipated capital receipts and Fusion Assets own resources. An overall surplus of £4.881m is currently projected. These are estimates reflecting current valuations of land transfers and receipts from onward sales, which may fluctuate, impacting the surplus projected. 2.9 As of 31 December 2022, net surpluses of £0.393m are reported, with a projected £1.550m of expenditure still to be incurred on pre-development and building works. Further receipts of £6.807m are still anticipated, mainly from the onward sale of developments and VDLF funding.
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2.10 Members are reminded the total development investment of the current portfolio is in the order of £46m, which predominantly rests with the joint venture companies and excludes some £10m of predevelopment works funded through VDLF grants. Fusion Assets’ share of total development costs will be in the order of £8m and will consist of a mixture of land, cash contributions and recycled receipts. Cash Flow Forecast to December 2024 2.11 Fusion Assets requires effective cash management to support its development programme therefore the cash position is closely monitored, with the cash balance as at 31 December 2022 totalling £2.466m. The cash flow forecast to December 2024 is shown in Appendix 5. Based on estimated expenditure and receipts the forecast demonstrates there is sufficient funding available to carry out the proposed development programme. The lowest cash balance is forecast at £2.150m in February 2023, with the balance reaching a high of £3.556m in May 2023. Financial impact 2.12 Fusion Assets does not receive an on-going or recurring management fee from the council for the delivery of services but rather uses grant funding from the council’s Vacant & Derelict Land Fund (VDLF) allocation as enabling investment for the acquisition and redevelopment of vacant and derelict land sites. 2.13 The council did, however, award Fusion Assets £1.388m through the 2021/22 VDLF Programme and a further £1.938m through the 2022/23 Programme for a variety of industrial development projects. Key Achievements & Highlights (22/23 Q3 & 4) 2.14 During 2022/23 Fusion Assets carried out a sustainability review of its activities and adopted a new ESG (Environmental Social and Governance) Policy to reduce its carbon footprint and transition to a net zero operational model. As a demonstration of its commitment to embed sustainability principles within its regeneration activities, Fusion Assets has appointed Muir Construction to build a new flagship Net Zero development at Newhouse. 2.15 The 16,000 sq ft speculative industrial building will incorporate a community benefits programme during construction and feature a wide range of energy saving measures to make it net zero carbon enabled during operation. The new building is expected to be completed and available to let by the end of 2023. Its development is being financed through a mixture of grants from the Scottish Government’s Vacant and Derelict Land Fund and recycled receipts from the sale of the new Co-Op Facility on adjacent land which has been completed under a development agreement between Fusion Assets and Tulchan /Newlands. 2.16 Following the acquisition of a further nine acres of land at Gartcosh Industrial Park, Fusion Assets appointed Advance Construction to undertake a programme of enabling works including a new access road, platforming and site servicing. The works are scheduled for completion by the end of March 2023 which means the site could accommodate a further 102,000 sqft of industrial and commercial floorspace which equates to approximately 200 FTE jobs. Also at Gartcosh, a second industrial unit is now under offer with a target date of entry targeted of 31st March 2023. This means that there is only one unit remaining under the first phase of development built by Gartcosh Estates LLP (a joint venture between Fusion Assets and J Smart & Co).
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Planned Revisions to Articles of Association 2.17 As the incorporation governance document, Fusion Assets’ Articles of Association outline the purpose of the company, the rights and responsibilities of its members and directors and the way in which the company must operate as a whole. 2.18 The existing Articles of Association were approved in June 2008 when, following the withdrawal of Scottish Enterprise Lanarkshire, Fusion Assets was restructured as a wholly owned subsidiary company of North Lanarkshire Council with responsibility for promoting industrial and commercial regeneration and encouraging economic development in areas of established market failure where there is little speculative development by the private sector. 2.19 As sole shareholder the council is responsible for appointing Directors to serve on Fusion Assets’ Board of Directors and the Articles of Association make provision for up to eight directors comprising five Council directors (Partner Directors) and up to three Co-opted Directors drawn from the private sector who bring expertise, skills and business specialisms to the company. 2.20 The Partner Director roles comprise three elected members and the positions of Chief Officer (Financial) and Chief Officer (Place). 2.21 The existing Articles of Association stipulate that the quorum for meetings of Fusion Assets’ Board of Directors is four Partner Directors – the Co-opted Directors are not included in constituting the quorum. This requirement, which is not reflected in existing or former arm’s length service delivery arrangements where the council is sole shareholder, has on occasion resulted in Fusion Assets’ Board meetings being inquorate with business deferred. 2.22 In response the Board of Directors agreed at their meeting on 24 November 2022 to review the Articles of Association to address the limitations imposed by the current quorum clause and also to conduct a wider review and update of the Articles to ensure that they remain robust, fit for purpose and reflect the increasing and enabling role of digital technology to support virtual and hybrid meetings. 2.23 This review activity is currently underway, in conjunction with the council’s Legal and Democratic Service and it is anticipated that a further report detailing the proposed changes to the Articles and seeking council consideration and approval of these will be submitted to this Committee at its meeting on 1 September 2023. 3 Measures of success 3.1 Fusion Assets’ measures of success are reflected in the level of physical regeneration works which they deliver together with economic outcomes achieved from investment made. For 2022/23 this includes: • the acquisition, remediation and improvement of Phase 3 and 4 of Gartcosh Business Interchange (3.67ha) which has been completed; • the acquisition of Plot 1 at Ravenscraig Industrial Park (circa. 2 ha) - planning permission has been received and the site acquisition is in legals; and • the procurement of a Joint Venture Partnership to take forward the redevelopment of Condor Park, Eurocentral – legals are agreed and the deal is subject to funding.
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4 Supporting documentation 4.1 Appendix 1: Fusion Assets Ltd - 2022/23 Operational Performance Measures, Targets and Outcomes 4.2 Appendix 2: Fusion Assets Ltd - Financial Performance as at 31st March 2022 4.3 Appendix 3: Fusion Assets Ltd - Overall Financial Standing as at 31st Dec 2022 4.4 Appendix 4: Fusion Assets Ltd - Financial Performance as at 31st Dec 2022 4.5 Appendix 5: Fusion Assets Ltd - Cashflow Forecast as at 31st Dec 2022 Pamela Humphries Chief Officer (Place)
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? 5.1.1 Promoting inclusive growth sits at the heart of the council’s Ambition Programme. Fusion Assets will contribute towards this goal through the delivery of activity that supports the council to meet its Fairer Scotland Duty and address socio-economic disadvantage by: • promoting and enabling investment that will create and improve access to new and better employment opportunity; and • working as part of North Lanarkshire’s ERDP Business &Industry Group to ensure effective linkage between economic opportunity, skills and work-force development. 5.1.2 Fusion Assets also aim to ensure that any potential adverse equalities impacts as a result of policy and/or plans developed are minimised or negated where possible. If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☒ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Fusion Assets does not receive an on-going or recurring management fee from the council for the delivery of services but rather uses grant funding from the council’s Vacant & Derelict Land Fund (VDLF) allocation as enabling investment for the acquisition and redevelopment of vacant and derelict land sites. The council did, however, award Fusion Assets £1.4M through the 2021/22 VDLF Programme and a further £1.938M through the 2022/23 Programme for a variety of industrial development projects. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)?
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Yes ☒ No ☐ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Legal and Democratic Services provide Fusion Assets with third party Vacant & Derelict Land Fund grant agreements. Legal and Democratic are also liaising with Fusion Assets and the company’s solicitors to revise and update the Articles of Association for consideration by the council. 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☐ No ☒ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☒ No ☐ The environmental impact of any projects progressed by Fusion Assets has/will be assessed as part of the business case process. 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? Fusion Assets’ risk register review has been uploaded to the council’s Fig Tree Risk Register and is reviewed annually.
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5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☒ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services.
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Appendix 1 Fusion Assets Ltd - 2022/23 Operational Performance Measures, Targets and Outcomes Area of Activity Performance Indicator 2022/23 Target Outcome Outcome Achieved Comments Cumulative Total (Since 2011) Improve economic opportunities and outcomes Support development of strategic investment sites, Enterprise Areas and industrial parks Number of infrastructure works to support strategic industrial sites 2 1 The infrastructure works on Gartcosh Phase 3 & 4 was completed at the end of March 2023. Planning approval for the first phase of infrastructure works at Ravenscraig Plot 1 has been obtained, but site needs to be acquired before works contract can be let – currently in legals and subject to Fusion Assets Board Approval. 9 Area of Activity Performance Indicator 2022/23 Businesses Accommodated by Site as at 31 March 2023 Comments Cumulative Total (Since 2011) Support businesses in expansion and development Number of new gross businesses re-located T A R G E T Dundyvan Enterprise Park N/A A C T U A L Dundyvan Enterprise Park N/A Dundyvan was sold in early 2018 and Western Campus in October 2019. Businesses accommodated at these sites have not been counted from after the date of sale. Link Park : The 47,500sqft building on Plot A2 is complete and handover scheduled for 31st March 2023. Gartcosh - building 2 under offer with date of entry targeted at 31st March 2023. Building 3 still to be let 13 Western Campus N/A Western Campus N/A 12 Drumpellier N/A Drumpellier N/A 4 Link Park 1 Link Park 1 4 Gartcosh (Phase 1) 2 Gartcosh (Phase 1) 1 2 Total Number of businesses accommodated when properties under ownership of Fusion Assets/Fusion Assets JV. 35
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Area of Activity Performance Indicator 2022/23 Number of Gross Jobs Created by Site as at 31 March 2023 Comments Cumulativ e Total (Since 2011) Enhance the number of direct, indirect and induced jobs Number of new direct gross jobs created (FTE) TARGETS ACTUAL Dundyvan Enterprise Park N/A Dundyvan Enterprise Park N/A Dundyvan sold in 2018 and Western Campus in 2019. Jobs created since date of sale have not been included. New Tenant at Drumpellier has resulted in more jobs 119 Western Campus N/A Western Campus N/A 166 Drumpellier N/A Drumpellier N/A 53 Link Park 50 Link Park TBC New Tenant to confirm 63 Gartcosh (Phase 1) Buildings 2 & 3 80 Gartcosh (Phase 1) Buildings 2 & 3 TBC New Tenant to confirm 25 Total Number of gross jobs created when properties under ownership of Fusion Assets/Fusion Assets JV. 426 Area of Activity Performance Indicator 2022/23 Target Outcome (ha) Actual Outcomes as at 31st March 2023 Comments Cumulativ e Total - ha (Since 2011) Improve the health and wellbeing of our communities Improve brownfield and vacant & derelict land Total of vacant and derelict land improved (ha) 3.18 3.18 Target – Gartcosh Phase 3 & 4 developable land 15.8 Vacant & derelict land sites removed from register Total of vacant and derelict land taken off register (ha) 1.04 1.04 Previous land removed to date includes from Dundyvan Enterprise Park, Western Campus, Link Park (part) and Drumpellier Business Park (part) and Gartcosh Phase 1 (part). Remainder of Gartcosh Plot 1 to be removed from register in 2022/23 4.8 ha V&DL acquired for commercial development V&DL acquired (ha) 2.0 0 Actual site is 2.32 ha under consideration but missives not yet agreed at Ravencraig Plot 1 15.54
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Area of Activity External Funding Leverage by Fusion Assets (Completed Projects) Comments Cumulative Total (Since 2011) Improve North Lanarkshire’s Resource Base Leverage on Council Investment Project Dundyvan Western Campus Gartcosh Phase 1 Drumpellier Link Park – excluded until full development completed / financed Gartcosh Phase 1: Excludes VDLF investment made in Phase 2 as this not currently financed. NLC secured an additional £108,000 capital receipt from SE following Fusion’s purchase of site for Gartcosh Phase 2. NLC received a further £213,000 receipt from SE as a result of Fusion Assets purchase of the Phase 3 & 4 land. Total Total Project Spend £2,985,993 £4,209,915 £5,541,621 £1,646,596 £14,384,125 VDLF £162,917 £748,564 £976,000 £300,000 £2,187,481 NLC N/A £99,351 N/A N/A £99,351 RCGF N/A N/A N/A £1,116,591 £1,116,591 Private Sector £387,750 £631,000 £857,000 £115,000 £1,990,750 Fusion £530,326 £631,000 £524,000 £115,000 £1,800,326 Loan Finance £1,905,000 £2,100,000 £3,184,621 N/A £7,189,621 Ratio of Leverage achieved from NLC investment (including VDLF Funding) 18:1 5:1 6:1 5:1 6:1
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Forecast GVA & Employment Impact of Projects Completed to Date Development Name Construction Spend *1 Construction Jobs (PYE) Construction Impact – GVA (£) *2 Employment By 2030*3 GVA Impact By 2030 *3 Local Economy Value Dundyvan Enterprise Park £2,823,000 18.8 £983,860 312 jobs + 0.5% £37M Western Campus £3,362,000 22.4 £1,172,259 357 jobs + 0.7% £50M Gartcosh Industrial Park Ph 1 (Building 1) £1,310,000 8.7 £455,297 175 jobs + 0.1% £7M Gartcosh Industrial Park Ph1 (Buildings 2 & 3) £3,091,076 20.5 £1,074,318 413 jobs +0.2% £16M Enterprise House, Drumpellier Business Park £1,046,000 7.0 £366,331 65 jobs + 0.02% £2M Link Park, Newhouse (Building 1) £1,100,000 7.3 £382,030 156 jobs + 0.1% £8M TOTAL £9,641,000 72.9 £4,434,095 + 1478 jobs + 1.62% £120M *1 Excludes site acquisition and remediation costs *2 Person Year Equivalent (PYE) construction impacts are reported as gross impacts and as such do not take account of displacement or leakage to the local economy. Source: Scottish Annual Business Statistics 2019 *3 Employment and GVA impacts take in to account direct impacts (changes in employment and GVA as a direct result of these commercial developments), indirect impacts (impacts on supply chains) and induced impacts (household spending as a result of wages earned both via direct and indirect impacts). The uplifts in GVA and employment figures are based on a number of assumptions around the occupancy rates and types of businesses occupying these premises as well as macro-economic factors such as Brexit. The model on which 10 year Employment and GVA forecasts were produced was developed before the Covid-19 global pandemic and therefore may prove optimistic. Source: NLC oxford Economics Model 2019
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Appendix 2 Fusion Assets Limited Financial Performance as at 31st March 2022 Income & expenditure 2020/21 Commentary Budget Final Outturn Variance Final Outturn £ £ £ £ Rental Income 135,342 134,275 (1,068) 94,835 Minor under-recovery in income at Newhouse Building due to lease agreements Bank Interest 1,000 1,537 537 923 Minor increase in interest due to market impacts Investments 0 207,200 207,200 10,000 Receipts from development sale of Newhouse A2 Misc 0 0 0 10,295 Total Income 136,342 343,011 206,669 116,053 Expenditure: Staff costs (173,960) (167,294) 6,666 (105,939) Underspend due to delay in recruitment Board Costs (15,000) (15,000) 0 (15,008) Operating Costs (89,300) (78,608) 10,692 (60,289) Decreased expenditure in project/development costs Running Costs (10,900) (21,837) (10,937) (5,105) Overspend as a result of small P&L write-offs Total Expenditure (289,160) (282,739) 6,421 (186,341) Net Surplus/Deficit (152,818) 60,273 213,090 (70,288) Accounting adjustments: Release of deferred grant income 0 873,049 873,049 699,643 Unrealised gain/(loss) on investment property 0 (5,905) (5,905) 195,225 Impairment 0 (251,185) (251,185) (446,102) Tax provision 0 (165,945) (165,945) (77,885) Increase / (Utilisation) of Reserves (152,818) 510,286 663,104 300,593 2021/22
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Appendix 3 Fusion Assets Overall Financial Standing - Balance Sheet as at 31 December 2022 Balances/ Indicator as at 31 December 2022 as at 31 March 2022 Movement Commentary £'000 £'000 £'000 Fixed Assets: Investments 1,040 990 50 Increased investment in Gartcosh Estates LLP Investment Property 1,995 1,995 0 Newhouse Building 1 3,035 2,985 50 Current Assets: Stocks 3,502 2,884 618 Work in progress Trade Debtors 565 1,351 (786) Debtors, VAT recoverable, deferred taxation, accrued income, prepayments Bank 2,467 2,563 (96) Short-Term Investments 0 0 0 6,533 6,798 (265) Current Liabilities: Other Creditors inc. VAT & other taxes (3,265) (3,333) 69 Deferred income (VDLF), accruals, tax (3,265) (3,333) 69 Net current Assets/(liabilities) 3,268 3,464 (196) Creditors: Amounts falling due over 1 year (2,396) (2,417) 21 Deferred income (Boots) Net Asset / (Liabilities) 3,907 4,032 (125) Current Ratio 2.00 2.04 (0.04) A comparison of current assets, current liabilities and short term loan obligations, gives a net current asset position of £3.268m, and a healthy current ratio of 2.00, which gives assurance the company has sufficient resources to meet its current commitments
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Appendix 4 Fusion Assets Limited Financial Performance as at 30th December 2022 Income & expenditure 2021/22 Commentary Annual Budget Projected Outturn Variance Final Outturn £ £ £ £ Rental Income 161,707 158,554 (3,153) 134,275 Bank Interest 700 5,266 4,566 1,537 Investments 0 0 0 207,200 Misc 0 1,565 1,565 0 Total Income 162,407 165,385 2,979 343,011 Expenditure: Staff costs (182,570) (182,570) 0 (167,294) Board Costs (15,000) (15,000) 0 (15,000) Premises Costs (9,250) (9,289) (39) 0 Operating Costs (79,000) (74,522) 4,478 (78,608) Running Costs (12,000) (12,165) (165) (21,837) 0 0 0 0 Total Expenditure (297,820) (293,546) 4,274 (282,739) Net Surplus/Deficit (135,414) (128,161) 7,253 60,273 Accounting adjustments: Release of deferred grant income 0 0 0 873,049 Unrealised gain/(loss) on investment property 0 0 0 (5,905) Impairment 0 0 0 (251,185) Tax provision 0 0 0 (165,945) Increase / (Utilisation) of Reserves (135,414) (128,161) 7,253 510,286 2022/23
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Appendix 5 0.000 0.500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 Jan- 23 Feb- 23 Mar- 23 Apr- 23 May- 23 Jun- 23 Jul-23 Aug- 23 Sep- 23 Oct- 23 Nov- 23 Dec- 23 Jan- 24 Feb- 24 Mar- 24 Apr- 24 May- 24 Jun- 24 Jul-24 Aug- 24 Sep- 24 Oct- 24 Nov- 24 Dec- 24 balance 2.445 2.150 3.044 3.505 3.556 2.987 3.419 2.992 2.988 3.093 3.130 3.106 3.095 3.144 3.061 3.058 3.090 3.085 3.046 3.079 3.069 2.995 3.033 3.022 Forecast Cash Balances to December 2024