Hounslow's Lampton Group is facing a projected £2.2 million loss, prompting a search for budget efficiencies, according to a recent Shareholder Committee meeting. The council has requested Lampton Group identify further efficiencies in its budgets for 2025/26 and assess whether any budget proposals for future years could be implemented earlier to improve the current financial position.
The committee, which convened on Tuesday, 9 September 2025, reviewed the financial performance of the Lampton Group of companies for the first quarter of the 2025/26 financial year. The report pack indicated the group was £1.4 million behind budget. Councillor Shantanu Rajawat, Leader of the Council, chaired the meeting, which included Councillors Lily Bath, Tom Bruce, and Sue Sampson.
According to the Public reports pack, Lampton 360, Lampton Investment, and Coalo are forecasting losses, while Lampton Recycle and Lampton Greenspace are expected to be profitable. Coalo's losses are driven by a reduction in the value of the commission from the Council for housing maintenance. Lampton Investment's losses are due to lower rent levels, void properties, and interest costs. The forecast loss for Lampton 360 is a result of increased insurance costs partially offset by savings on staff.
The Public reports pack stated:
Lampton Group have identified risks and opportunities to the forecast position presenting a range from ending the year ahead of budget by £0.2m to behind budget by £3.2m.
The Lampton Group has identified several opportunities to improve the forecast position, including Coalo securing an additional £0.5m in work and cost savings, Lampton 360 potentially using its £0.5m contingency, and Lampton Greenspace 360 securing ad hoc third-party work. The group is also considering a line-by-line review of budgets and better cash flow management. Risks include Coalo not mitigating the reduced commission, Lampton 360 utilizing its full contingency, and a shortfall in budgeted ad hoc work for Lampton Greenspace 360.
The committee also noted the progress of the Lampton One Board Project, which aims to consolidate governance across all Lampton Group companies into a single board structure. The goals of the project are to strengthen governance, improve strategic alignment, enhance board effectiveness, and deliver efficiencies. The changes are already contributing to reduced overhead costs and expected to create further efficiencies as the full year impact is seen in 2026/27. The new unified board structure will drive improvement, better alignment with the corporate priorities of the Council, improve the operating efficiency of Lampton Group and deliver a reduction to the overhead costs of Lampton Group. The first One Board meeting is scheduled for October 2025. Key deliverables achieved include the appointment of Robin Porter as chair, implementation of a skills matrix for the board, updated terms of reference, and a new scheme of delegation. The Lampton Group previously operated with separate boards for each operating division of the Group, Services (Coalo, Lampton Greenspace 360 and Lampton Recycle 360), Homes (Lampton Investment 360 and Lampton Development 360 management board) and Lampton Leisure, reporting to the Group Board. The members of the Lampton Group board will be Robin Porter, Gillian Bishop, Simone Chinman, Robert Overall (until 31st October 2025), Rowland Omamor (appointed with effect from 30th September), and Dr Gurcharan Salotera (appointed with effect from 30th September). Robert Overall is resigning from his role as a director with effect from 31st October. Rowland Omamor is currently a director of Lampton Leisure Limited, Lampton Greenspace 360 Ltd and Lampton Recycle 360 Ltd and will be appointed to Lampton 360 Limited. Dr Gurcharan Salotera is currently a director of Lampton Leisure Ltd and will be appointed to Lampton 360 Ltd.
Work is continuing to embed the approach, including enhancing governance and compliance through finalising committee structures and meeting schedules, strengthening risk management with a revised framework launching in February 2026, and board development with training and a new handbook for non-executive directors.
To address the £2.2 million loss, the council has requested Lampton Group to look at all its budgets to look for further in year efficiencies with a view to improving the financial position for this year. Lampton 360 is assessing the need to use its £0.5m contingency and exploring further efficiencies through lower insurance costs and holding vacancies. Better cash flow management looking to maximise interest earnings on overnight cash is also being considered.