Agenda item

The Management Committee considered a report of the Managing Director which provided an update of the actions and progress made since the previous ESPO Management Committee meeting held on 26 November 2025. A copy of the report marked ‘Agenda Item 5’ is filed with these minutes.

 

Arising from presentation of the report and discussion, the following points were made:

 

i.          It was reported that ESPO had achieved a surplus of £7.7 million, which was £0.8 million ahead of budget and £0.7 million better than the previous year. Members were advised that market contraction had continued, driven largely by funding pressures affecting schools, although growth in development areas had helped to offset some of the decline in traditional markets.

 

ii.          It was noted that, despite lower levels of sales, margin performance had remained strong throughout the year and was expected to continue through the final quarter.

 

iii.          Rebate income was reported to have continued to perform well, while expenditure had been tightly controlled, with staffing vacancies and other cost controls helping to offset lower sales and gross margin during the year.

 

iv.          ESPO Trading Limited and Eduzone had continued to benefit from international relationships and that overall costs within those businesses had also been well controlled.

 

v.          A surplus of £134,000 had been achieved across those operations, which was £73,000 above budget.

 

vi.          Members noted that the conflict in the Middle East could have implications for ESPO, and that mitigating actions were being taken through supplier engagement, stock management and optimisation of deliveries in order to maintain availability.

 

vii.          Overall, Members were was advised that ESPO had continued to perform well in a challenging market, had remained competitively priced, and was on course to surpass its full-year budget target.

 

viii.          In respect of operational progress, it was reported that stock availability had remained high at 99.2% in January, notwithstanding continuing supply chain pressures.

 

ix.          Members noted the continued strong customer service performance, including a FEEFO score of 94%, and that ESPO had been awarded FEEFO Platinum status in recognition of maintaining a service rating above 4.5 out of 5 over a three-year period.

 

x.          It was further reported that facilities management activities and statutory inspections had been maintained and that there had been only one minor health and safety incident to report.

 

xi.          Members were advised that IT performance remained strong, with high internal satisfaction levels and a robust cyber security score, and that a SharePoint site had been created for the corporate risk register.

 

xii.          In relation to staffing, Members noted the sickness absence position, including the 7.5 day target, the reported average of 2.27 days lost per FTE during the relevant period, and the further detail set out in the report regarding the causes of absence and the actions being taken in response.

 

xiii.          Members further noted the range of preventative actions being taken to support staff health, safety and wellbeing and to promote a positive working environment. Members also noted that staff health MOTs provided by Leicestershire County Council had been well received.

 

xiv.          In the course of discussion, Members congratulated officers on a strong set of results achieved during a particularly challenging trading period and commented that the customer service outcomes demonstrated that ESPO remained a trusted organisation within the market. In response, the Managing Director thanked members for their comments and confirmed that their remarks would be shared with the wider organisation.

 

xv.          A question was raised regarding the differential in sickness absence between warehouse-based and office-based staff, particularly in relation to mental health, and members asked what support was in place for staff experiencing mental health difficulties. In response, the Managing Director emphasised the importance of mental health support, referred to the mental health first aiders available at ESPO, and noted that particular attention was given to staff working night shifts given the potential impact of that working pattern on wellbeing. It was also noted that, as ESPO employed more staff within operations, a higher number of absences in that area might be expected.

 

It was moved by Cllr. Bridgwood and seconded by Cllr. Jamil that the update provided by the Managing Director be noted.

 

RESOLVED:

 

That the update provided and progress made since the last update be noted.