This follows a £2.15 million loss in 2019/2020, and the fourth consecutive year the limited company has posted a loss.
The results were published last week (18 March) and cover the financial year ending on 31 March 2021.
They showed that revenue for the period stood at £39.4 million, a rise of £2 million from 2019/2020. This was put down to the company delivering an alleyway repair programme as well as increased services during multiple lockdowns.
Liverpool Streetscene Services, established in 2016, started managing the city’s refuse and recycling collection when the council ended its contract with Amey (see letsrecycle.com story).
A spokesperson for LSSL said: “The controllable operating position of the Company pre the inclusion of the defined benefit pension scheme entries shows an improved performance of £0.445m with a £0.011m profit, compared to a £0.434m loss in 2020.”
The council said it then provided a letter of support to satisfy auditors of the ‘going concern’ status that if necessary adequate financial assistance would be provided, but this was not required.
Going concern
The 2020/21 report reads: “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 from Liverpool city council for at least twelve months to enable it to trade for the foreseeable future”, it continues.
Other councils
The small loss by Liverpool Streetscene services isn’t entirely unusual for local authority trading companies (LATCOs).
Elsewhere, Norfolk’s Norse Environmental Waste Services posted a £1.4 million loss for the 2020/21 financial year in January 2022.
A spokesperson for the company put this down to a reduction in revenue gained from the sale of materials but said the current hike in recyclate prices will “significantly improve” financial performance in 2021/22.
Cheshire West Recycling, set up by Cheshire West and Chester council, posted a £650,000 loss in its first year of operations in 2020/21.
However, this isn’t always the case. Bristol Waste Company recorded its second successive year of profit in 2021, with an above forecast £878,178 recorded.
However, it claimed an “additional” £1.56 million from Bristol city council and £220,000 in furlough money.
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