Posted: Wed 24th Jan 2024

Loss-Making Business Centre in Torfaen to Receive Cash-Injection in Effort to Turn Fortunes Around

news.wales / newyddion.cymru
This article is old - Published: Wednesday, Jan 24th, 2024

A LOSS-MAKING business centre credited with creating 750 jobs is receive a cash-injection from its local authority owners intended to turn its fortunes around.
The Springboard centre at Llantarnam Park, Cwmbran provides space and support to new start up businesses but has struggled to attract tenants since the Covid, pandemic in 2020, while Torfaen Borough Council, also blames Brexit for its downturn.
The 25,000 square foot centre, that cost £4.1 million when it opened in 2006 with support from the European Union, has been described, by the council, as having been a success until around 2020 but just 49 per cent of the three-storey building is currently occupied.
Independent advice on how to turn the centre’s fortunes around was commissioned, from Oxford Innovation, and its future has been considered by a council scrutiny committee on three occasions since 2022.
The Labour controlled council’s cabinet has now agreed to use £343,000 from its economy directorate’s reserve to carry out building repairs and “cosmetic enhancements” to make it more attractive to tenants and prospective occupiers.
As part of the overhaul of the centre that council will also seek a commercial partner, for at least 12 months, to support its transformation deliver a specific programme of marketing and events and provide structured training and advice.
The centre is currently run by a small number of staff, directly employed by the council, who will remain in post.
By the end of the third year of the planned project it is expected income can be raised from the current £97,000 a year to around £305,000.
A report to the cabinet stated its business case suggests Springboard can move from “a significant loss-making venture, with an annual net expenditure deficit of £210k currently, to a position where costs and income are more evenly balanced” with the annual deficit reduced to around £11,000 by the end of the third year.
The council will then have to once again consider the future of the centre and if it wishes to make further investments in it following the phased thee year enhancement plan.
The report said Springboard had previously been considered a success and that it generated £194,000 in income in 2019 when occupancy rates stood at 72 per cent.
Since opening in 2006 the centre has been credited with having attracted a total of 126 businesses and creating 750 new jobs. The intention is that new businesses move on from the centre and of those 126 there are 38 now located within South East Wales and 12 in Torfaen. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​



Spotted something? Got a story? Email News@News.Wales



More from Torfaen Council

Gwent’s Newest Welsh Medium School Sees Enrollment Grow From 3 to 20

Torfaen Council

Householder Told “Six Foot” Fence in Garden Must Go

Torfaen Council

Welsh Councils Express Concerns Over Elimination of For-Profit Care Homes

Torfaen Council

Concern Raised Over Disabled Child Unable to Access Science Block Without Lift

Torfaen Council

Reducing number of children in residential care to address Gwent council’s projected overspend

Torfaen Council

£2.5 Million Requested for Second MRI Scanner at Gwent’s Grange Hospital

Torfaen Council

Latest from News.Wales

Gin Distillery and B&B Scheme Turned Down by Pembrokeshire Planners

Pembrokeshire Council

River Pollution Poses Major Threat to Housing Developments and Economic Prosperity in Powys, Warns Councilors

Powys Council

Gwent’s Newest Welsh Medium School Sees Enrollment Grow From 3 to 20

Torfaen Council

Surgeons at New Neath Port Talbot Theatres Not Yet at Full Capacity

Swansea Council

Council Cleansing Teams Praised for Making a Real Difference in Swansea

Swansea Council

Almost Every Pupil in Monmouthshire Achieves GCSE in Welsh Second Language

Monmouthshire Council