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North Yorkshire County Council is estimating that its Brierley Group of companies will return to profit by the end of the financial year.

According to a performance report for the group, the businesses are forecast a £2.69 million profit before tax by the end of 2022/23.

The figure is against a budgeted profit of £2.61 million.

It comes as the companies had previously posted losses of £327,000 for the previous financial year due to the covid pandemic.

The county council puts the performance down to a “positive outlook” for sales in Brierley Homes sites and other companies performing above budget.

A report due before the council’s shareholder committee said that while revenue was ahead of budget, the group still faced cost increases, inflation and high energy and labour costs.

It said:

“Revenue remains significantly ahead of budget, however all market segments continue to experience material cost increases, with inflationary pressures in the UK acting to drive up general costs of sale.”

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Brierley Homes saw completion of two of its housing sites last year, which is expected to see sales “fully realises this financial year”, the report added.

The sites include Woodfield Square in Bilton and Millwright Park in Pateley Bridge.

The company expects further sales for its Yew Tree Farm site in Marton-Cum-Grafton.

Meanwhile, Align Property Partners is expected to publish a profitable position with “new external client contracts being acquired” and the firm having a “significant outperformance” against budget.

The company is expected to operate on a commercial basis under North Yorkshire Council as the authority sets up a new council-owned estates firm.

However, North Yorkshire Education Services is expected to post a loss for the financial year.

The council has put this down to “ongoing issues in the education market” due to covid, including rise in food costs in school catering and low pupil attendances levels.

The report said:

“Meal uptake in schools has not recovered in many areas to pre-covid levels which has led to dis-economies of scale.”

County council to set up new estates company

North Yorkshire County Council looks set to establish a new property company to look after its estate.

Under plans outlined in a report due before the council’s executive, the new firm would be established with £200,000 working capital backed by a loan.

It would also see the authority’s current estates company, Align Property Partners Limited, operate on a commercial basis.

The new firm would be wholly owned by the council and would transfer to North Yorkshire Council from April 1.

As part of the plan, the company would adhere to “teckal” exemptions – meaning the council could directly award it contracts without open procurement.

Vicki Dixon, assistant director for strategic resources, said in a report that the current firm, Align Property, was “well-placed” to operate commercially.

She said:

“A substantial market exists for the services provided by Align, with the company well placed to capitalise on its existing reputation in the commercial space.

“The growth is being driven by non-NYCC externally generated income and indicates that Company trading aspirations have outgrown the initial Teckal-based operating model.”

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Ms Dixon added that the new company’s function would be to “continue providing high quality property, highways and estates services to the council and associated bodies, while being Teckal compliant”.

Senior councillors will discuss the plans at a meeting on Tuesday, February 21.

The move comes as the new North Yorkshire Council is set to take control over a host of district-council run companies.

Brimhams Active, the arms-length leisure firm, and Bracewell Homes – both of which are owned by Harrogate Borough Council – will transfer over to the new authority on April 1.

The county council has previously been criticised for the performance of its own companies after its Brierley Group of firms reported losses in recent years.