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Annual Report 2014 Amended.Indd Annual Report and fi nancial statements 2014 Katy Poacher from Yardley in the West Midlands was one of 13 Remploy candidates who started work at Sainsbury’s new store in Longbridge. Katy, who has Down’s Syndrome, received tailored support from Remploy’s Yardley branch after she left her last job as a care home assistant. “Remploy gave me the confi dence to go for this job,” said Katy, who is a clothing sales assistant. “I wasn’t very happy at my last job, but I’m a different person now.” Su Tranter, Sainsbury’s HR manager at the store added: “I’m passionate about working with Remploy because I know they will always provide motivated candidates.” Remploy Limited. Company Registration No. 394532 Contents Remploy Limited Report and fi nancial statements 2014 Registered Offi ce Contents Page 18C Meridian East Meridian Business Park Chairman’s review . 5 Leicester LE19 1WZ Strategic report . 7 Telephone: 0845 155 2700 Facsimile: 0116 281 9860 Directors and Advisers. .15 Registered number: 394532 (England and Wales) Directors’ report. .18 Bankers The Royal Bank of Scotland Group plc. Corporate Governance. .21 Corporate & Institutional Banking Audit Committee report . .25 135 Bishopsgate London Remuneration Committee report . .29 EC2M 3UR Auditors Directors’ responsibility statement . .32 Deloitte LLP 2 New Street Square Independent auditors’ report . .33 London EC4A 3BZ Income statement . .35 Solicitors Statement of comprehensive income . .36 Michelmores LLP Woodwater House Balance sheet . .37 Pynes Hill Exeter EX2 5WR Cash fl ow statement. .38 Taylor Wessing LLP Notes to the fi nancial statements. .39 5 New Street Square London EC4A 3TW www.remploy.co.uk 3 During the year Remploy Employment “Services found 18,562 jobs for disabled and disadvantaged people. 4 Annual Report and fi nancial statements 2013 ” Chairman’s Review During 2013/14 Remploy successfully undertook the fi nal stages of its transformation from an organisation which provided employment in its own factories to an organisation focused solely on supporting disabled people to secure and retain jobs in open employment. Ian Russell, Chairman By 31 December 2013, the continued to develop a range (Enterprise Businesses) of £3.8 remaining factories were sold or of new products and services million (2013: £1.0 million). closed. Several new businesses for employers to assist them in employing former Remploy employing more disabled people. These results also include a employees emerged from the provision of £7.6 million (2013: transformation. Remploy Employment Services £51.3 million) for the remaining also delivered other commercial costs of transforming Remploy The confi dence resulting contracts including a Workplace primarily for transition support from this transformation was Mental Health Support Service and property exit. This has been refl ected in the announcement for the Government’s Access fully funded by the Department by the Minister of State for to Work programme and of Work and Pensions (DWP) Employment on 22 July 2014 employment support for ex- and the funding received offset of the commencement of a service personnel and other against the cost in the Income Commercial Process with the aim uniformed personnel with Statement. of securing the exit of Remploy’s disabilities or health conditions. Employment Services from Employees Government ownership by March Financial Results 2015. I would like to thank all of Revenue from continuing our employees who worked Employment operations increased by 12% in hard to provide, secure the year. Grant-in-Aid recognised and retain employment for Services in the year was £45.2 million with disabled people, whilst at the an additional £41.5 million of same time transforming our In 2013/14 Remploy’s pension scheme defi cit funding, organisation. Working with great Employment Services delivered representing £21.5 million for professionalism and showing the Government’s Work Choice 2013/14 and £20.0m paid outstanding commitment, they employment programme early for 2014/15 (2012/13 enabled Remploy to maintain for disabled people, and £61.3 million and £nil pensions business as usual during a most provided specialist support as funding). diffi cult time. a sub-contractor to several Prime providers on the Work The Company’s subsequent I am grateful to my colleagues Programme. During the year, profi t before tax from continuing on the board and in executive Employment Services found operations of £19.2 million and senior management for the 18,562 jobs for disabled and (2013: loss of £20.3 million) expertise and diligence they bring disadvantaged people and excludes discontinued operations to Remploy. www.remploy.co.uk 5 Chairman’s Review (continued) I would particularly like to Outlook The transformation of our extend my personal thanks business from a factory-based to Tim Matthews whose fi ve Under our new Chief Executive set of operations to one focused year term of offi ce as Chief Beth Carruthers, who was on helping individuals fulfi l their Executive came to an end in appointed on 1 January 2014, aspirations for careers in open December 2013. Tim guided the Remploy’s mission remains employment provides a platform organisation through a period focused on helping to transform for growth and an exciting future of unprecedented change with the lives of disabled people and for Remploy’s Employment wisdom and patience. I would those experiencing complex Services as a fully commercial also like to record my thanks barriers to work by providing organisation operating outside of to Nigel Hopkins, Remploy’s sustainable employment government ownership. Executive Director of Finance, opportunities. Beth joined who left the company in Remploy in 2000 and has led the September 2013. Nigel joined development of the Employment Remploy in 2004 and over the Services business. It is estimated years his advice and counsel that by March 2015, Remploy’s have been invaluable. Employment Services will have supported more than 100,000 Ian Russell CBE disabled and disadvantaged people into work since 2010. Chairman 6 Annual Report and fi nancial statements 2014 Strategic Report The Directors Results and Textiles, Furniture, Marine Textiles, Packaging and CCTV businesses present the Performance through either a sale of the Strategic Report The latest fi gures show that business or closure. As a result for the Company there are 259,000 more disabled of the sale or closure of these people in employment in Great businesses, a further 1,693 for the year ended Britain than one year ago (3.07m employees left the Company 31 March 2014. in Q3 2014 up from 2.81m in Q3 during the year. During the year, 2013) – with the largest recorded the average number of staff The Directors in Q3 year on year employment rate employed in the discontinued preparing this increase in the last decade. businesses was 527 (2013: 1,804). The exit through the sale Strategic Report, During the year, the Employment or closure of these factory and have complied Services division operating through service businesses completed the national delivery of the Work the transformation of Remploy with s414C of the Choice programme, as a sub- from an organisation providing Companies Act 2006. contractor to Prime contractors employment in its own factories under the Work Programme and and service operations to one through the delivery of other focused entirely on supporting Review of the contracts placed 18,562 (2013: disabled and other people with Business 17,835) people with a disability or complex barriers to work to secure other complex barriers to work into and maintain jobs with mainstream The Company is a provider of mainstream employment. Remploy employers through its Employment services that transform the lives remains the largest provider of Services division. of disabled people by increasing jobs for people under the Work A comprehensive 18 month the number of sustainable Choice programme. In addition guaranteed, People Help and employment opportunities and to developing new products and Support Package is in place assisting people with a disability services to assist and support for disabled people affected or other complex barriers to work people into work, the Company by the exit of Remploy factory into employment and supporting also continued to develop and businesses. Latest fi gures show them when in employment. The introduce programmes designed that 1,245 former Remploy Company is a private company to assist organisations in recruiting disabled workers (over 80 per without share capital and is limited disabled people and sustaining cent) of the 1,507 people who by Guarantee of the Secretary of their employment. were made redundant and had State for Work and Pensions. In The process of transformation been supported by a Personal addition to revenues generated of the Company continued Case Worker were in work and/ from its own commercial activities, during the year with the sale or or had accessed Work Choice the Company receives Grant-in- closure of the remaining factory support. A total of 1058 jobs have aid from the Government to fund and service businesses in the been found for disabled former its operations. Enterprise Business division. employees and 774 are in work. During the year, the Company exited the Automotive, Automotive Total revenue for the year from Textiles, E-Cycle, Frontline continuing operations was www.remploy.co.uk 7 Strategic Report (continued) £60.2m (2013: £38.3m). Total for past service costs arising from is measured in purely fi nancial revenue comprised revenues pension scheme amendments terms. Remploy also considers its from commercial contracts in and net fi nance costs of £13.2m social impact to be very important Employment Services of £15.0m (2013: £6.6m). and it measures this using a (2013: £13.4m) and Grant-in- Social Return on Investment Note 6 to the fi nancial statements aid of £45.2m (2013: £24.9m).
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