Agenda item

4.1       Consideration was given to a report by the LHC Group Director, which provided Members with an overview of the organisation's performance.

4.2       The Joint Committee was informed that the business continued to be significantly affected by the Covid-19 pandemic. Business was down approximately 50%, though the organisation’s strong financial position meant that reserves would cover this reduction, which was expected to improve once the pandemic was resolved and the recovery plan initiated.

4.3       Staff morale continued to be high, though absenteeism had been seen to have increased, likely due to the unique stresses of the pandemic and increased isolation through the periods of lockdown. The business was focussing on staff wellbeing and had instigated several measures to ensure staff were less isolated, including regular catch up meetings, quizzes, online games, and virtual coffee breaks.

4.4       New staff had continued to be recruited throughout the lockdown periods, and LHC was working closely with LB Hillingdon on governance and strategy, with a focus on staff wellbeing and training.

4.5       Client satisfaction remained high at 91%, with appointed companies at 80%.

4.6       Although business was down, the business had continued to generate new project leads. Four frameworks had been completed in the last six months, with one Dynamic Purchasing System (DPS), with further completions expected within the next six months.

4.7       IT systems, including remote meeting tools such as Yammer, were working well. The business was working with PWC to further develop IT infrastructure for future years.

4.8       Full details of Community Benefit Funds would be brought to the June 2021 meeting. The transfer of Lintel Trust, as suggested at the previous meeting, was being finalised, pending approval by LB Hillingdon. It was confirmed that there was no material financial impact on LHC as a result of the transfer.

4.9       The risk register was outlined, which included risks relating to Covid-19, staff wellbeing, and business performance.

4.10    Committee Members sought further information on the business’s analysis of public sector construction within the next two years. Members were informed that the business continued to secure thousands of leads each year, in line with agreed KPIs. The business was confident that its forecast of increased income post-pandemic was accurate. Longer term, the business was following its own 3-year plan, which included research and analysis which considered political, economic, social and environmental factors. Quarterly meetings had been scheduled to carry out this analysis work, to inform a refined strategy. Key considerations for frameworks moving forward were likely to be safety (particularly post-Grenfell), the environment, and speed of construction.

4.11    All new frameworks were confirmed to contain environmental considerations, including recommendations from an external energy efficiency specialist that had been engaged in the previous year, and talks were ongoing with the government on likely future requirements. Brexit was not expected to result in material changes for the business in terms of its labour or supply chain. As new guidance, market forces, and technology was brought to the market, frameworks would be updated. Frameworks could be applied to all property types or sectors, though limitations did at times exist, particularly regarding the retrofitting of older buildings.           

4.12    Members suggested that more regular updates be provided to the Board members, perhaps by way of a newsletter. In addition, it was suggested that Members could be engaged earlier, when the business was deciding how grant money was to be spent.

            RESOLVED:

1.         That the information contained in the report be noted; and

2.         That the transfer of Lintel Trust to LHC be approved.