b' the sectors [ie local governments] combined profits of externally traded services of 1.5bn between 2008 and 2013 exceeded that of companies like JD Wetherspoons (353m), John Lewis (885m) and Waitrose (1.25bn) over the same period. As part of our research into this phenomenon Localis has conducted a survey of 150 key local government figuresincluding chief executives, leaders, cabinet members and chief finance officers, and the results show that councils are behaving innovatively in a number of ways:94% of authorities share some services with another council; more than half of councils (58%) own a trading company, and at the rate it is increasing, full coverage by 2020 is a possibility; a majority of councils (57%) operate a joint venture with the private sector; over a third of councils are using entrepreneurial methods in areas such as waste (46%), leisure and tourism (38%), IT/back office (38%) and housing (36%). Another report prepared by accounting firm Grant Thornton (Spreading their Wings: Building a successful local authority trading company) also highlights the increasing interest in trading by local government as austerity bites and local authorities look for alternatives to service delivery.Current boom service areas for trading include waste, facilities management and legal services.Issues to consider with trading companies 4.6 The use of a company as a pre-requisite for trading powers raises a number of legal and practical issues. Any company will be a new legal entity, distinct from the authority which has created it. In itself, this leads to additional governance issues.It should be noted that, although there are different types of company models, the limitation in section 95(4) of the 2003 Act effectively means that the choice is restricted to a company limited by guarantee or shares.As noted above, it is not currently possible for a local authority to participate in a limited liability company (LLP) for trading purposes under section 95. EU issues and State aid 4.7 These issues are outlined in Chapter 5 of this guide (which deals with public to public trading by public bodies and is covered in more depth in Rob Hanns Local Authority Companies and Partnerships) but needs to be considered when a trading entity is considered. 54'