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Impact Report 2007/08 Published 2009 Welcome Impact Report 2007/08 Published 2009 Welcome Contents Meet HCT Group 04 Changing lives and communities 16 Commercial success 08 Employment, learning and skills 0 Engaging stakeholders 14 The road ahead 24 HCT Group is an excellent example of how social enterprise Welcome can benefit local communities and the economy. In times of economic hardship, such HCT Group is in the transport business. We run a commercially businesses are to be applauded successful operation, generating a healthy income from safely for providing much needed delivering more than 27,500 passenger trips every day. services to users with mobility difficulties, and for boosting But this only tells part of our story. HCT is first and foremost a local community investment social enterprise, which is why we have published this Impact and employment. Report. The following pages are designed to provide an insight into our commercial and social impact over the last few years. Chris Huhne HCT is a fantastic organisation. Liberal Democrat shadow The passion with which they Most of the facts and figures in this report relate to an 18-month Home Secretary combine their commercial work period between April 2007 and September 2008. However, some with their social mission is to be financial statements, including those relating to growth and admired. Social enterprise will profitability, cover the financial years of 2006/07 and 2007/08. Social enterprises can help us play an increasing role in our deliver better public services and economy in the coming years. As this report demonstrates, the core of our business is create local jobs at the same time. Organisations like HCT, that delivering contracts to enable marginalised sections of society It’s a model we want to support. combine strong business ethos to be mobile, pursue new opportunities and access the with great social values, will be services that we all need to live full and enriching lives. But, as Nick Hurd instrumental in this change. you will see, our innovative business model also enables us to Conservative shadow Minister do much, much more. for Charities, Social Enterprise Ed Miliband and Volunteering Secretary of State for Energy and Dai Powell, Chief Executive, HCT Group Climate Change 0 0 Meet HCT Group Meet HCT Group Introduction What is HCT Group? HCT Group (HCT) is a business for Transport for London – and invests in communities is money for poor people – the quality has to heading for many destinations, transport for workers at the Olympic it has made, as well as secured be there. HCT Group is a provider of public but with a very clear sense Park, to social service transport and through grants. transport and related training of direction. school buses.The profits from these “Helping someone have a more services still based in Hackney, commercial transport services are HCT also prides itself on its independent life, helping an elderly east London where it began but As a social enterprise, it has a ploughed back into the communities involvement with service users, person out of isolation, a parent now operating across England. strong social mission, but as chief it serves. For example, HCT who have representatives on HCT’s knowing their child is in safe hands, The organisation is a company executive Dai Powell says: “You provides transport for children and board and can air their views in giving someone the skills and limited by guarantee, as well as have to be an enterprise first, adults with physical and learning regular forums. flexibility to get a job that suits them a registered charity. because if you don’t make a profit, disabilities. It also invests in projects – these are all different destinations you can’t fulfil that social mission.” designed to give both its employees “We are on a journey and we do not and this is what it comes down to As a group of companies, HCT and those from the communities have one destination we are trying for us.” runs a series of subsidiaries. HCT is a thriving and successful in which it operates access to new to reach,” says Dai, who is also These include two charities, two business, with an annual turnover skills and opportunities. one of England’s Social Enterprise In 26 years, HCT has grown from community interest companies, topping £16.4m and more than Ambassadors and chair of the a small community transport an industrial and provident 450 employees. Some 97 per cent of HCT’s income Community Transport Association. operator in Hackney to the national society, two companies limited is generated from contracts won organisation it is today. by guarantee and one company HCT’s commercial operations through competitive tender in the “We operate in poor areas because limited by shares. range from red London bus routes open market, mostly against the that is where the greatest need is. As the pages following illustrate, for – regularly rated among the best private sector. A lot of the money it But we don’t provide poor services the thousands of passengers using These different structures form HCT services every day, this journey the unique HCT Group business has always been about a lot more model and work together to than simply getting from A to B. n operate as a social business. This model puts HCT in a perfect • HCT provides more than position to meet the needs of the 10 million passenger journeys communities in which it operates, each year – that’s nearly as well as to satisfy the demands 0,000 every day. of external stakeholders. But run as a business, HCT is not • HCT’s annual turnover grew dependent on grants, giving it by £6.m in the two years a sense of independence many from 006 to 008, other charitable organisations do an increase of 61 per cent. not enjoy. 04 0 Meet HCT Group 1997 2006 • With the support of the Bridge • Turnover: £10.2m, no. of staff: 326, 2008/Today House Estates Trust Fund, HCT no. of depots: three. • Turnover: £16.4m, no. of staff: pilots a new PlusBus service in 450, no. of depots: seven. • Plans are announced to expand Hackney, a member service aimed HCT’s London community transport • Every day, at least 50 1982 1993 at people who have difficulty in services by merging with Lambeth and learners attend the HCT • HCT founded after several local • Turnover: £202k. using existing transport services Southwark Community Transport. Learning Centre, with around community groups pool their operating along fixed routes. • HCT wins its first commercial half of them women. transport resources to apply the • Metro awards HCT the contract to contract from Homerton Hospital. community transport model used 2001 operate the Leeds AccessBus service, • Over 600 groups use HCT’s by many organisations in the UK. group transport service. • Turnover: £1.8m. a dial-a-ride, door to door bus service for people who have difficulty in using • HCT receives a grant from the 1991 • In partnership with ECT • HCT wins first red bus route conventional public transport. London Borough of Hackney to Group, HCT wins contract to • HCT starts a community from Transport for London. start community transport in the area. transport removal service. • HCT wins contracts to operate social provide construction worker services transport in the London transport to the Olympic Park. borough of Kensington and Chelsea and Lambeth. 2003 • Turnover: £3.7m. 2007 1995 • Red London bus routes 388 and 394, under contract from • Turnover: £12.5m, no. of staff: 366, • Turnover: £276k. Transport for London, begin 2005 no. of depots: five. • HCT becomes the only NVQ operating. The 388 was a new • Turnover: £9.4m, no. of staff: • 25 new yellow school bus routes in accredited centre for passenger bus route initiated after 302, no. of depots: two. Leeds for Metro are initiated, with transport training in Hackney, a sustained campaign from • For the first time, HCT wins further expansion into Wakefield. offering this service to its own local residents. contracts to operate outside paid and unpaid staff and as • Expansion of community transport London. It is contracted by part of training packages for 2004 services into the London Borough 1986 Metro, the public transport other organisations. • Turnover: £6.4m, no. of staff:198, of Haringey. • With the support of volunteers and 15 no. of depots: one. authority in West Yorkshire, permanent staff, HCT supports more than to run eight yellow MyBus • HCT starts operating its fourth London • HCT begins operating in the London 800 Dial-A-Ride users, 4,000 minibus school routes in and red bus service. The W13 is Borough of Waltham Forest, users and has 750 registered drivers. around Wakefield. a Transport for London contract. delivering 500 local children with special educational needs to school • Dai Powell, HCT Chief Executive, and back each day. is appointed a Social Enterprise Ambassador by the government. • ScootAbility, a scheme offering 50 mobility scooters, available to individual residents for up to four days at a time, is launched. 06 0 Commercial success Commercial success HCT as a competitive business In times when many businesses maintains a sharp commercial focus. “We work in a competitive market are finding things hard, HCT Chief executive Dai Powell says: and our contracts are awarded on is moving up to a higher gear. “There’s no point getting up in the price, but we can also show that we Turnover has grown more than morning and going to work at HCT if over-achieve on quality and our 60 per cent over two years – in we haven’t got a business to run.” customers’ requirements.” 008 it hit £16.4m. And 9 per cent of HCT’s income is earned The successful expansion of HCT’s The red bus route services through contracts won in open commercial activities is testament represent the largest proportion competition with private sector to the enterprise’s innovation and of HCT’s commercial work – and market leaders.
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