Council careers firm loses £2m but is still ‘financially strong’

A COUNCIL-OWNED company has reported significant losses, it has been revealed.

The Nottingham-based Futures, helps people and businesses with careers and employment advice, getting qualifications and finding work.

The company is jointly owned by Nottingham City Council and Nottinghamshire County Council.

Annual accounts, submitted to Companies House, show losses of £2,251,583 in the year ending March 2020.

That comes after losses in the previous financial year of just over £1 million.

However, the accounts also make clear the company remains a ‘going concern,’ and that it has cash reserves of £3.5 million.

Company bosses have said the losses were caused by ‘movements in historic pension fund valuations, which are beyond the company’s control.’

The CEO of the firm said it was a ‘financially strong business’ with ‘no borrowing and no direct financial support from the (council).’

Commenting on the accounts, a joint statement was made by Conservative county councillor Boyd Elliot, and Labour city councillor Neghat Khan.

The pair said: “While the financial report shows a loss due to increased pension contributions, it also references £3.5m of cash reserves which the board will use to help deliver the important work it does to support businesses, to boost the quality of their workforces through training and giving young people the skills they need to compete in the jobs market.

“The challenges presented by Covid-19 means that this work is more important than it has ever been, and we look forward to setting out how our organisation is adapting to support the changing employment challenges young people face.”

Peter Brammall, Futures CEO said: “Futures is a financially strong business with substantial cash reserves, no borrowing and no direct financial support from the local authority (council).

“It has successfully leveraged into Nottingham and Nottinghamshire significant levels of additional funding from external sources to provide services which benefit thousands of local residents, supporting them to gain new skills and progress into jobs.

“Of course, a significant element of the prior year losses related to movements in historic pension fund valuations, which are beyond the company’s control, although the results were also impacted by the restrictions imposed by Covid-19.”