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Report of the Managing Director of CITY OF YORK TRADING LTD |
Annex B |
City of York Trading Ltd Shareholder Value and Performance Update
1. Delivering Shareholder Value
Shareholder value is typically delivered in a number of ways including through non-tangible benefits. CYT now delivers shareholder value to the Council through:
· Supply of temporary teaching and support staff to local schools, by WorkwithSchools - accredited as a Crown Commercial Framework supplier, a holder of APSCO Compliance+ Audited status and with over 170 mostly five-star Google reviews;
· A comprehensive WorkwithSchools training programme, tailored bespoke Continuing Professional Development courses specifically designed for supply teachers and teaching assistants in consultation with local schools and provided free of charge for WorkwithSchools agency staff. This includes Early Career Teacher training, Teaching Assistant “taster” courses aimed at candidates new or returning and subject/key stage specific training, both in person and online.
· CYT’s support for apprenticeships and staff training within its own staff team, which has three current staff completing apprenticeships. As well as recruitment training, staff undertake other industry accredited qualifications and training, including in business support, payroll, compliance and marketing.
· Employment opportunities for local residents with both CYT brands, though some roles may be temporary, this fits with other staff commitments and many agency staff stay registered over many years enabling to move between assignments, through WorkwithYorkshire more permanent opportunities are available;
· CYT run a weekly in-house payroll for temporary staff (and do not use an umbrella payroll company), we use an online timesheet system (available on a mobile app) so timesheet hours logging and authorisation is simple and pay and charge rates transparent. The Company invoices clients monthly with competitive, all-inclusive rates, made up of pay, employer’s NI, employer’s pension, holiday pay, apprenticeship levy, payroll and timesheet costs and agency fees.
· The Company’s ethical approach is demonstrated by this in-house payroll (ensuring high levels of compliance and avoiding candidate deductions for umbrella costs), and CYT only recruits for roles which are at Living Wage Foundation payrates or above. Consultants across both CYT brands have a bespoke approach to both clients and candidates, using their specific local and sector knowledge and Company profits are used to support local services.
· CYT provides both its permanent and temporary workforce with access to an Employee Assistance Scheme and Occupational Health support where needed – both purchased from the Council’s service supplier.
· Now Living Wage employers for all permanent and temporary staff, CYT are now looking to obtain Living Wage Accredited Status and Good Business Charter Accreditation.
· CYT currently employs eighteen people within its staff team, with most staff working on a hybrid basis. Some staff work wholly or in part for Work with York Limited on Council business, and their costs are recharged where relevant.
· WorkwithYorkshire offers local competitive and ethical recruitment across Yorkshire, for the Council’s partners and contacts, new and existing businesses, as well as public and third sector organisations.
· CYT’s staff awards (last held in 2023) celebrating the hard work and commitment of the Company’s temporary and supply staff and client contacts. The Company received excellent feedback from staff and other guests, including Council elected members and managers after the last event and received local and regional press coverage;
· The Company’s rental of 29 Castlegate from the Council at a market rate, and its contributions both in financial and aesthetic terms, to the refurbishment of a building which had been empty for several years;
· ICT costs paid at market rate to the Council for hardware, network and systems access and advice ;
· CYT made a loan in April 2025 of £600k to the Council’s new Teckal Company, Work with York Limited, enabling this company to service the Council’s temporary staffing requirements and to cover initial overhead and payroll costs.
· 29 Castlegate acts as a donation point for York Foodbank, with donations received from the CYT staff team, temporary staff and candidates, partners across York and members of the public. CYT has previously made other charitable donations from fundraising including to the Island, and York Hungry Minds Appeal.
· The CYT staff team have volunteering opportunities as part of CYT’s CSR, and some will be supporting St Leonard’s Hospice by marshalling the Yorkshire Marathon and 10k in October 2025.
· When profits allow, Shareholder dividends are paid by the Company to the Council, and to date CYT dividends paid to the Council have exceeded £1m.
3. Update on current performance
1. WorkwithSchools
As schools are faced with on-going budget challenges and a broadening need for the types of roles they want WorkwithSchools to support, there has been a reshaping of CYT’s education team with a focus on business development, candidate onboarding and extending our services across a range of educational establishments, with refreshed KPI’s to support.
A key area of focus over the quieter summer months have been on candidate recruitment and schools engagement, with a number of events being run, promoted via social media and further supported by the marketing team.
During each summer, WorkwithSchools carry out a supply staff survey, checking availability for Autumn term and beyond and seeking feedback on the agency. Below is some of the excellent feedback received from a number of different WorkwithSchools supply staff :-
“WorkwithSchools has strong connections with local schools and nurseries. They genuinely care about their supply staff and maintain regular, open communication”
“Friendly, professional staff, good weekly payroll system, offered plenty of work”
"Excellent phone manner. Tailor assignments to my preferences. Friendly - you have always provided me with roles I like to cover. You are a flexible team and accommodate my complicated working rota. You are courteous, kind, helpful and trustworthy. Pay is always on time. You get to know us and you very kindly put on socials. It feels like one big family.”
“The agency is very well organised. I like the flexibility they give you in terms of your work-life balance. There is also a lot of training which help you to be more confident”
“It also feels like the team knows me, rather than just being a random person that they send off to work in a school.”
“Working with WorkwithSchools has been an incredible experience from the very beginning. The support they provide in each role is outstanding, and the volume of work and bookings they offer always aligns perfectly with my preferences. I’ve never had a single negative experience with them, and I hold both the company and its staff in the highest regard.”
Though generally schools summer holidays are quieter, WorkwithSchools have been building engagement with nurseries as a way of bridging the demand gap, this summer exceeding planned budget, with a 98% fill rate and maintaining higher revenue levels compared to 2024.
A new Crown Commercial Service “Supply Teachers and Education Recruitment” framework tender opportunity is expected to be published during October 2025 (awarded in April 2026) so WorkwithSchools will be attending a preparatory briefing with APSCo shortly, ahead of bidding.
APSCo’s Compliance+ Audit is due for renewal in spring 2026, and the WorkwithSchools team, together with back office compliance colleagues continue to clear and re-check supply candidates in line with APSCo’s quality standards.
2. WorkwithYorkshire
After the death of one of WorkwithYorkshire’s recruitment consultants earlier in the year, the last few months have been challenging whilst a longer-than-expected recruitment process has taken place for a new member of staff. WorkwithYorkshire was delighted to welcome an experienced consultant at the start of September.
Reduced capacity over this challenging period has significantly impacted revenue, and although several permanent roles have been filled, temporary assignments covered and new clients onboarded, the Company now expects all of these (and therefore turnover) to increase markedly in the second half of the year following this new appointment.
Now back to capacity, the team is being supported to achieve robust KPI’s with a renewed marketing strategy and additional advertising capacity from the end of September onwards.
For WorkwithYorkshire, feedback from three different clients has included
“Thank you for providing 3 excellent candidates to interview. Again, a difficult decision as all 3 presented very well.”
“We are really pleased with how she has settled into the team and picked up the role.”
“She seems to be fitting in really well and is very positive and eager to learn”
Though under budgeted revenue for the first half of the year, CYT has robust plans in place for recovery and growth in the remaining months.
4. Looking forward
CYT’s audited accounts for 2024/2025 will be included with the next Shareholders report once approved by the Board and filed with Companies House.
The Company is looking carefully at the likely effects of the Employment Rights Bill currently going through Parliament, especially in relation to temporary assignments, and is closely following APSCo’s reports and guidance.
In line with increased adoption across the Council, CYT is considering the additional use of AI to assist management, augment services to clients and candidates and support its wider staff team, also ensuring necessary safeguards.
WorkwithSchools will re-tender for Crown Commercial Service supplier status once the new framework has been published in October 2025.
CYT’s Cyber Essentials is to be renewed in February 2026, and the Company will again be working with CYC ICT colleagues ahead of submission.
WorkwithSchools are also planning for their annual APSCO Compliance+ Audit in February/March 2026.