Figures have revealed that a company set up by Lichfield District Council made £13,600 of profit in the last year.
The local authority created Lichfield West Midlands Trading Services to allow it to carry out commercial activities.
It has so far seen elements such as the council’s communications function, leisure and disabled facilities grant services transferred to the new wholly owned trading company.
An annual report revealed that turnover was £509,000 during the 2022-23 financial period, with a profit generated of £13,600.
Cllr Alex Farrell, who chairs the Lichfield West Midlands Trading Services board, said he anticipated that figure would increase over the next 12 months.
“I expect to see a step change in terms of the number, variety and complexity of services we will provide and this in turn will result in a significant growth in revenues.
“The strategy for growth of the company is to continue to transfer appropriate services from the council where doing so will provide them with the freedoms and flexibilities they need to be more successful, and to continue to look for opportunities to be innovative and entrepreneurial – introducing services we know will contribute income or that we can trade to other organisations.”
Cllr Alex Farrell, Lichfield District Council
Managing director Simon Fletcher said he too was confident the commercial arm of the council would help boost the local authority’s coffers.
“In addition to generating a modest profit for the year, we set about forming the foundations for modern, efficient operations and business growth for the years ahead.
“The company year has seen us set up to trade. We have established the company’s infrastructure, and started to create a high performing culture.
“The year was busy and not without challenge, but as it progressed and our confidence grew, we have looked to be more creative, commercial, and innovative.
“I believe we are ready and capable, as we go into year two, of providing high quality, value for money, public services on behalf of Lichfield District Council and of growing external revenue streams which will help enable the Council to protect and enhance its own front-line services.”
Simon Fletcher, Lichfield District Council
The annual report into Lichfield West Midlands Trading Services will be discussed at a meeting of the council’s cabinet tomorrow (10th October).
