Liverpool Streetscene Services Ltd recorded a loss after tax of £2.15 million in the 2019/20 financial year, the third consecutive year in which it has posted a loss. Services provided by the company include waste and recycling collections for the city council.
The results, published last week (25 March), cover the financial year ending 31 March 2020 and so include only a few weeks of the pandemic. They show the company had a turnover of £37.4 million, up from £31.9 million the previous year.
The results came soon after an independent report into Liverpool city council. This was published last week and raised issues around the management of Liverpool Streetscene Services (see letsrecycle.com story).
The directors’ report for Liverpool Streetscene Services said the company’s accounts were prepared on a ‘going concern’ basis. This means it had the resources it needed to continue operating for at least the following 12 months.
A Liverpool City Council spokesperson told letsrecycle.com: “No financial support was given to Liverpool Streetscene Services Ltd. In line with standard financial reporting practice, we provided a letter of support to satisfy auditors of the ‘going concern’ status that if necessary adequate financial assistance would be provided, but this has not been required.”
Established by Liverpool city council in 2016, Liverpool Streetscene Services delivers a number of essential services across the city, including refuse and recycling. The company was formed after Liverpool’s contract with Amey ended. In 2018 it hailed its decision to bring public services in-house as a “success” (see letsrecycle.com story).
The company’s financial results say the increased turnover was primarily the result of a parks and cemeteries maintenance contract that began in November 2018.
However, the company’s losses also increased, from £751,000 in 2018/19 to £2.15 million in 2019/20. It also recorded a loss of £615,000 in 2017/18.
Liverpool Streetscene Services’ directors did not recommend the payment of a dividend for 2019/20.
The directors’ report reads: “Notwithstanding the loss for the year, the net current liability position and the shareholders’ deficit as at 31 March 2020, the Directors consider that it is appropriate to prepare the financial statements on a going concern basis.
“The Directors are satisfied that the Company has adequate resources having received confirmation of support of its parent entity, Liverpool City Council, for a period of at least twelve months from the date of approval of these financial statements to enable it to continue trading for the foreseeable future.”
As part of the ‘future developments’ section of its full accounts, Liverpool Streetscene Services touched on the impact of the Covid-19 pandemic on the company.
The report said the company remained operational and had put in place several control measures to “decrease risk to employees deploying our services”.
It added: “The primary focus of the company remains improving the levels of services across its core public sector business areas, whilst exploring opportunities for increasing additional commercial revenue streams.”