An update has been provided in a report – the quarter two review of non-treasury investments – which will come before the council’s cabinet on Monday, January 13.
In it, it says Redwood Bank continues to trade profitably, and the council’s Section 151 officer continues to attend the regular board meeting as an observer.
“The bank maintained its equity value in 2023-24 but it’s still well below what the council initially invested,” it adds.
“A further valuation will be required as part of the council’s accounts for the 2024-25 financial year.
“Cabinet have previously been advised of the bank’s proposal for a stock market flotation, this would have been via a reverse takeover with R8 Capital (an existing listed entity).
“On Friday 6th December 2024, R8 made a City announcement that this reverse takeover would no longer be going ahead.
“More current information on this is included within the Part Two report. The bank does need extra capital investment to continue to grow.
“If the council does not invest further in the future, its shareholding will be diluted.
“At the moment there are no plans for the council to exit its investment in Redwood Bank, but we keep the situation under regular review.”