Birmingham Chamber on solid footing after cost reduction

Birmingham's premier business organisation is in its best cash position "for many years" following reductions in costs, the Chamber of Commerce AGM was due to be told today.

The improved outlook for the Birmingham Chamber was disclosed in its annual report, which reveals that a £350,000 medium-term bank loan had bolstered the balance sheet, with operating surplus up to £240,000.

The annual report shows that the highest paid director, thought to be chief executive Jerry Blackett, earned a total of £154,126 last year, an increase of more than £20,000 on the previous year. The increase was solely due to the fact that no bonuses were paid in 2012/13.

The AGM saw leading Birmingham lawyer Greg Lowson of Pinsent Masons take the reins as the new president, while Birmingham Airport chief executive Paul Kehoe and Birmingham Hippodrome chief executive Stuart Griffiths were elected vice-presidents.

Mike Hibbert, the chamber's financial director, said: "The chamber's current cash position is better than it has been for many years and projections show that the position will continue to improve as a result of sustained surpluses.

"The de-risking of the chamber's business by reducing its cost base over the last few years, has strengthened our finances and produced a substantial surplus for 2013-14.

"The current year is budgeted to be better still, and at the mid-year we were ahead of that budget.

"The positive impact of the surpluses on cash is now very noticeable and puts us in a much better position to provide services to our members over the coming years."

Mr Hibbert reported that the Greater Birmingham Chambers of Commerce income for the year was £6.6 million which was in line with the previous year.

He added: "This was despite a six per cent decrease in public funding which we use to provide business support and training, the decrease being offset by an increase in subscription income from members and patrons and increased property rental income.

"I am pleased to be able to report that, despite income not changing significantly, the chamber's operating surplus before reorganisation costs increased from £149,000 last year to £240,000."

On directors' pay, the annual report said: "The emoluments, excluding pension contributions, of the highest paid director were £154,126 (2013: £133,719)."