Teesworks latest accounts published - who has been paid and what for
Plus: MP opposes Teesworks incinerator, flu cases spike in Teesside hospitals and Houchen interview analysis (£)
Can you still say “Happy new year” nearly a week after putting up your new calendar?
Either way, this is the first edition of The Teesside Lead of 2025, the 20th overall.
It’s back to regular twice-weekly service from today, starting with a story that’s become my bread and butter (Teesworks), and an update on plans for an incinerator (on Teesworks), and I learned how many people were admitted to Teesside hospitals in December with flu.
For paid subscribers I take a look at an interview with Ben Houchen that was published this week, and analyse what was said.
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Teesworks Ltd has published its most recent accounts, revealing an increase in money to the private partners despite a large drop in both annual turnover and profit.
The company, which is 90% owned by developers Chris Musgrave and Martin Corney, published its results for the year-ending March 2024 last week, and revealed dividends of £20,250,000 were paid to shareholders against revenue of £22,176,487. Revenue for the previous year was £142,889,169.
The other 10% of Teesworks Ltd is owned by South Tees Development Corporation (STDC), the public body chaired by Ben Houchen and responsible for redevelopment of the former Redcar steelworks site.
Initially set up as a 50-50 joint venture between STDC and the private partners in 2020, 90% of the company was handed to Musgrave and Corney for free in November 2021 in a controversial deal which lead to accusations of corruption.
STDC insists it was in exchange for the private partners taking on future liabilities on the site, however, a review commissioned by the previous government in the wake of those accusations of corruption, and published in January last year, says, “the legal documentation doesn’t impose any such obligation on [Teesworks Ltd].”
As well as paying £20.3m in dividends, Teesworks Ltd also paid £8.3m to an unnamed company for “marketing and other activities”. Documents obtained by Private Eye magazine and seen by The Teesside Lead show this company is DCS Industrial Ltd, a company which is owned by Messrs Musgrave and Corney.
This means the duo were potentially paid £28.6m despite the company only raising £22m in revenue.
That’s possible by taking money from the company’s cash reserves, which according to the government review, was being held to pay for future remediation of the site. In the year-ending March 2024, Teesworks spent £54m from its reserves, which includes the £20.3m in dividends.
Chris Musgrave and Martin Corney are entitled to at least 90% of the dividends paid, although it’s understood STDC holds a different class of shares, so the partners may have received the £20.3m dividend in full.
Net profit for 2023-24 was £2,709,850, down from £54,269,850 the previous year.
Over the last three years, the two businessmen have potentially paid themselves a total of £92,159,057 through dividends and payments to DCS Industrial. Their most recent accounts show Teesworks Ltd had over £40m in cash reserves last March, meaning they could have made over £130m without investing any start up capital.
The accounts also show a debt of £10,000,000 is still outstanding for purchase of the freehold of the site which the SeAH Wind site is currently being built on. The deeds show the land itself was sold for £96.79 (excluding VAT) in December 2022, although a side deal worth £15m for the sale was also signed, but only £5m has so far been paid.
Astonishingly, the accounts also show Teesworks Ltd used office space owned by the Tees Valley Combined Authority “under a verbal agreement yet to be formalised.”
This verbal agreement was seemingly entered into at the same time the government’s review into governance and deal-making on the site was in full swing.
Neither Teesworks nor TVCA are answering press questions about last week’s published accounts, though Teesworks released a statement where they made reference to a report they commissioned as “an independent study”.
“We are currently working with partners on a number of large-scale development projects,” said their spokesperson. “These are complex projects which require extensive and detailed planning, design and legal processes, but we are immensely positive about the development of the Teesworks site and we are looking forward to the huge progress we have already made on site continuing over the next 12 months.”
Ben Houchen has repeatedly said the £500m investment of public money returning £4.96bn of promised investment is something he would do again, and he’s also praised Corney and Musgrave for their role in “unlocking” the site through leveraging a ransom strip they owned.
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Flu admissions spike across Teesside
You may have seen it reported this week that the NHS is suffering from extremely high levels of admissions from flu - much higher than is usually expected.
In England there were 4,102 patients in hospital with flu on Christmas Day, rising by almost a quarter to 5,074 by 29 December.
That’s nearly 3.5 times higher than the same week last year.
University Hospitals Tees, which runs both North Tees and Hartlepool and South Tees Hospitals NHS Foundation Trusts, are appealing to the public to get flu vaccinations.
They told me more than 600 people were admitted to their hospitals, which include North Tees and James Cook.
I’ve previously written about how I get vaccinations for free, but many pharmacies will provide flu jabs for around £15 on a walk-in basis.
If you think you have flu, the NHS advises drinking plenty of fluids, taking paracetamol, and staying home if possible.
Incinerator is not wanted here, says MP
Redcar MP Anna Turley has voiced her opposition to plans to build a waste incinerator on the Teesworks site.
Yesterday, she shared a letter on social media which she had sent to both Hartlepool and Redcar and Cleveland councils.
“Bringing in waste from as far as Newcastle would mean more traffic, pollution, and unfair challenges for an area already under pressure,” she wrote.
“The overwhelming response I have received demonstrates that this facility is simply not wanted on the doorstep by local people.”
Meanwhile, at a Redcar and Cleveland Borough Council meeting last week, Liberal Democrat Jemma Joy raised concerns about the incinerator, alongside independent councillor Dr Tristan Learoyd.
The Tees Valley Energy Recovery Facility (TVERF) is a joint project between the Tees Valley’s five councils along with Durham County Council and Newcastle City Council, which will burn waste which isn’t recycled to produce energy.
I’ve written in depth about it previously (read here), and visited Grangetown to speak to residents about the project for BBC Radio Tees (listen here).
Campaigners argue it will release harmful emissions near an area which already experiences poor health outcomes, something echoed by Ms Turley in her letter.
“This is not just about technical specifications or economic arguments,” she wrote, “it is about fairness and listening to the people whose lives will be most affected. Grangetown, in particular, has shouldered more than its fair share of industrial developments.
“It is time to explore alternative solutions that better balance the needs for the region with the wellbeing of local residents.”
Last week, the government also announced it would only back plans for new waste incinerators if it can be demonstrated a project will help lower the amount of non-recycleable waste sent to landfill, or enable the replacement of older, less efficient plants.
Based on the source of its feedstock, it’s possible the TVERF could replace the three incinerators at Haverton Hill.
New Houchen interview surfaces
It wouldn’t have escaped the attention of Tees Valley politics watchers (and if you’re reading this far into the newsletter and support my work through a paid subscription, I assume that includes you), that a new interview was published with Tees Valley mayor Ben Houchen this week.
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