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Financials

CIFCO has been set up to provide income to its two ultimate parents - Babergh and Mid-Suffolk councils.

The majority of CIFCO’s income is paid out as interest on loans provided by the two councils. Over time, those loans will be repaid and more of the income from CIFCO will be distributed in the form of dividends.

On this page we provide the formal audited accounts for CIFCO when they become available.

We also provide a statement of the income received by the two councils from CIFCO (“The Councils’ Income from CIFCO”).

The income shows interest payments from CIFCO (row 5) and also the interest the council pays out on financing its loan to CIFCO (row 6). The net income to the councils is in row 7. Row 9 shows any dividends received from CIFCO and row 10 shows the total net income received (Row 9 + Row 7). This is the income received that is available to pay for council services. Councils show income as a negative number.

The audited accounts are standard as lodged with Companies House. The first 2 pages contain the Strategic Report and summarise the business. Performance is shown with respect to the Key Performance Indicators (KPIs) on page 2.

The Income Statement is on page 9.

While CIFCO is in the process of building up its property portfolio, there are a number of costs associated with buying properties that have a significant impact on CIFCO’s finances. The typical costs of buying a commercial property are around 6.75% of the purchase price. CIFCO records that cost as Exceptional Items on page 9 so we will see losses in the accounts while we are growing the portfolio. This will likely continue into 2021 when we should end the purchasing phase and move on to managing the portfolio for income. This is one reason why commercial property is a long-term investment.

CIFCO’s balance sheet is shown on page 10. We value the properties in the CIFCO portfolio once a year to coincide with our year-end and the audited accounts. In 2020 the valuation was done at the end of March and reflected the uncertainty that COVID created for commercial property prices at that time. This is highlighted in the “Notes to the Financial Statements” on page 18.

Please also see the FAQs section of the website for other information regarding CIFCO.

 

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