Council-owned Shrewsbury firm could be sold

A council-owned Shrewsbury business could be sold off in a multi-million pound deal in a bid to protect frontline services, it was revealed today.

West Mercia Supplies, which employs 100 people and has a turnover of £50 million a year, could be sold off as a going concern by the autumn as local authorities grapple to make savings in line with the Government's required cuts.

Over the next few weeks, decisions are to be taken by the cabinet committees of the four councils who own the business – Shropshire, Telford & Wrekin and Hereford Councils and Worcestershire County Council – to explore ways to enable it to stand alone and secure a profitable future.

A statement from Shropshire Council today said: "Given current funding pressures, the four councils share the view that they need to give priority to investing in their core activities and to maintain vital public services for their residents.

"West Mercia Supplies is in the fortunate position that it no longer depends on the support of the four councils and has the potential to be sold as a profitable, going concern to a prospective purchaser."

WMS provides office and educational products to schools and colleges. It also supplies local government offices and other non-profit making organisations.

Mike Phillips, managing director of WMS, based at Oxon Business Park, today said: "We have had a number of strategic reviews and mostly they have included a potential to sell the business over the years. However, I think times have changed in the landscape for local government and there has to be a question of whether running a trading organisation such as ours is an activity that can be continued."