Wrexham Council trading company loses £55k in cleaning contracts

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  • #116597

    DerekJackson
    Participant

    Wrexham Council set up a trading company to take over all of their cleaning services – in the first year of trading they have lost nearly £55k. https://beta.companieshouse.gov.uk/company/09243583/filing-history/MzEzODU2OTA1NWFkaXF6a2N4/document?format=pdf&download=0

    This is now a private company competing in the open market for cleaning contracts- the loss will have to be covered by someone — yes guess who you and me as rate payers.

    Why should ratepayers always have to pick up the bill because Council Members and Officers cant run their affairs the same as any other trading company would have to. If the Council was not bailing them out then they would have to declare themselves insolvent.

    Subsidies seem to be the name of the game – they already have nursery on Rhosddu Road that lost nearly £50k last year now this – – residents need to wake up to the fact that money they pay in rates is going to subsidise private businesses and services whilst competing with the commercial sector.

    #116618

    wrexview
    Participant

    Another Council ” ambition ” to use the words of the Council Leader that has failed to achieve success. This one has cost £55,000. Worryingly the Arts Hub is on the horizon and the sums involved are millions !

    #116620
    Sheefag
    Sheefag
    Participant

    Most new businesses lose money in the first year, but don’t let that spoil your fun lads.
    Now what’s the Welsh word for Schadenfreude?

    #116622

    DerekJackson
    Participant

    Sheefag you need to realise that this was NOT a new company they created from their existing staff and assets that belonged to the Council (us as ratepayers).
    If anyone starts a business up from scratch they would clearly produce a cash flow budget and ensure there was sufficient in the bank balances/loan finance to cover first year trading one off establishment costs. In this case the Council said it would be zero impact on the Council finance– this clearly is not the case on this occasion.
    My other post about Sprouts is exactly the same – nil cost to the Council
    Wait until you see the figures for how much will have to go into the Arts Hub over an above the figures shown in the budget it will pail the cleaning and nursery project into insignificance.

    #116623
    Sheefag
    Sheefag
    Participant

    Admit it Degsy, you’ll be gutted if they turn this around and make a profit.

    Just bask in the delicious, miserable pleasure, the Council is bringing you.

    #116649

    Ferret
    Participant

    Having looked at the accounts it showd the balance sheet which says that the net liabilities (not loss Derek) is entirely due to the pensions deficit. Also Derek, what’s that got to do with cleaning contracts which aren’t even mentioned?

    #116662

    DerekJackson
    Participant

    The company was set up wit the sole purpose of taking over all of the cleaning services previously run directly by the Council – they are also looking for other commercial contracts competing against non subsidised businesses. Is this fair use of public funding?

    #116716

    JoanTheHog
    Participant

    Sheefag you need to realise that this was NOT a new company they created from their existing staff and assets that belonged to the Council (us as ratepayers).
    If anyone starts a business up from scratch they would clearly produce a cash flow budget and ensure there was sufficient in the bank balances/loan finance to cover first year trading one off establishment costs. In this case the Council said it would be zero impact on the Council finance– this clearly is not the case on this occasion.
    My other post about Sprouts is exactly the same – nil cost to the Council
    Wait until you see the figures for how much will have to go into the Arts Hub over an above the figures shown in the budget it will pail the cleaning and nursery project into insignificance.

    Not quite sure you are correct when you say “assets that belonged to the Council (us as ratepayers)”. As stated in my thread about dog fouling fines the council are a private company just like M&S, Shell Oils, Ford Cars etc. When we pay council tax (rates) to them it is nothing but pure extortion & the council get a vast majority of funds from central gov’t.

    #116717

    JoanTheHog
    Participant

    The company was set up wit the sole purpose of taking over all of the cleaning services previously run directly by the Council – they are also looking for other commercial contracts competing against non subsidised businesses. Is this fair use of public funding?

    It is perfectly fair for a company to compete for business subsidised or not, even though the council has public funding direct from rate payers as stated above the council are a private company & can do what they want with monies they have. I know it sounds disgusting but that’s the way they work & there ain’t much we can do to stop it.

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