Shaw Trust Limited

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Shaw Trust Limited Trustees Annual Report and Financial statements for the year ended 31 August 2020 Shaw Trust Limited Registered Company Number 01744121 Registered Charity Number in England & Wales 287785 Registered Charity Number in Scotland SC039856 A Company Limited by Guarantee Trustees Report – Strategic report 1. Overview Who we are and what we do We have supported 292,735 people during the year Jutice and Community Health & Wellbeing, 13.0% Employment, 14.9% Shaw Education Trust, 2.8% Children’s Homes and Fostering Services, Learning & Skills, 34.5% 34.8% Page 2 of 88 Trustees Annual Report At Shaw Trust we pride ourselves on our We are inclusive; ‘charitable heart with a commercial brain’ We value the ideas, views and strengths approach to what we do. Our focus is to of everyone we work with and support. deliver quality services that also Everybody is different and everybody is maximise social value and social equal. investment to communities. This We are collaborative; approach will allow us to meet: Working together is more effective and efficient. We believe that by working What we believe together with those we support and our partners we create better services and Our Vision solutions. A future where good employment is accessible to all in society irrespective of We are honest; life circumstances. We are authentic, accountable and transparent in all we do. Our Mission To co-create and deliver high quality employability programmes and Shaw Trust believes in the right of every complementary services for people with person in the United Kingdom to live a complex needs, challenging life decent and dignified life through good circumstances or other barriers that employment. impact on access to work. We are a not-for-profit social enterprise Our Commitment that seeks to improve life chances for To focus our experience, skills, advocacy employment for people who face social and passion to deliver the highest quality and economic challenges, or who may services for the people we support and to also be disabled or have complex needs. improve opportunities and access to work now and for the long term. We know that inequality and barriers to accessing good employment impact Our Values significantly on people’s income, sense We believe that who we are and the of purpose, social connections and values we hold directly improves the personal agency. These inequalities and quality of what we provide to those we barriers often begin early in life, support. Our values guide and focus us impacting on individuals throughout their every day: school years and into early adulthood. We care about people; We have grown from humble beginnings. We support our staff, our volunteers and Founded in 1982 as a small charity in the the people we work with to realise their Wiltshire village of Shaw, our initial focus potential. was to find employment for disabled people. Over time and through a We make a difference; combination of organic growth, mergers Making a lasting positive impact for the and acquisitions we have become the people we support is the reason we exist. UK’s largest not-for-profit social We deliver high performance across our enterprise in the employability sector. services, helping people to improve their lives. Today we are a charity that remains committed to employment as the core pathway to a better life. However, we Page 3 of 88 Trustees Annual Report recognise that access to good These financial statements provide a employment is critically dependent on summary of our performance during the what happens in people’s formative year and outlines our ongoing ambition years and the opportunities they then and commitment to deliver high quality have. services to the people we support. To address this, we provide a broadened framework of complementary services including; Education and Skills, Children and Young People’s Services, Health and Wellbeing. Income & Expenditure Highlights Page 4 of 88 Trustees Annual Report Income & Expenditure Highlights Total Income less Expenditure Page 5 of 88 Trustees Annual Report 2. Financial review The Shaw Trust consolidated financial The second half of the year was statements for 2019-20 are presented in dominated by the impact of the Covid-19 the following pages. pandemic which has had a significant impact on the operations of the Trust and The Trust has grown significantly in its activities. Extensive risk assessment recent years, with the establishment of a and modelling has been undertaken to multi academy Trust and acquisitions of assess the impact on our business plan the Ixion and Prospects Groups. and contingency planning and actions Strategically this growth is important and undertaken. This has included has enabled the Trust to grow in new and renegotiation of income streams on existing markets. It has also facilitated major contracts, furloughing certain opportunities to optimise the cost base employees where necessary, particularly across the group by maximising the in our retail and enterprise operations opportunities to integrate property, which had to shut down during the systems, processes and people, lockdown period, and we have also particularly within the areas of central benefitted from temporary extra business support services. rates relief. More recently the organisation has seen In addition, liquidity has been supported a period of integration and consolidation through deferral of certain payments in anticipation of future opportunities under the Government scheme as within a rapidly shifting public sector appropriate. Where possible we have marketplace. sought to minimise our operating costs, by reducing office costs and overhead The new management team formed in expenditure. Although in many areas we 2019 has continued the restructure have had to change our way of working, programme for the business, including the underlying business remains robust the approval and implementation of a and we have managed to deliver in line three-year financial plan, which has been with our business plan during the year, approved by the Trustees and has the full and are confident that we will be able to support of funders and other manage the Trust through this crisis. stakeholders. Some sectors of the business, in The Trust has been in a year of transition particular the Charity Shops, Enterprise and completed its first year of a 3-year and Garden Centres have seen a higher turnaround plan. A restructuring exercise impact than others with a number of during this period has significantly employees having been furloughed in reduced the cost base. Detailed these areas. operational reviews have driven better margin performance, and repositioned The Trust has performed extensive the Trust for its future development. scenario and contingency planning and has continued support from its funders The first half of the year saw a period of and stakeholders, having renegotiated consolidation, focusing on the core funding arrangements as appropriate activities and disposing of non-core with major customers and varied working assets and business, and the practices to adapt to the crisis. This has identification of efficiencies within the included new funding arrangements with business DWP, NCS, HMPPS and Kent County Council. Page 6 of 88 Trustees Annual Report 2. Financial review (continued) maintained in line with the new reserves policy. Financial performance during this period of Covid-19 lockdown has been The results of each main legal entity may favourable to the Covid-19 scenario be summarised as follows: planning and we have consistently £m modelled a two peak scenario. We remain vigilant, especially with the Shaw Trust UK operations (7.5) introduction of recent new stricter (excluding business measures, although the Trust is combinations and confident that it has sufficient financial amortisation in period) and operational resources to operate Shaw Education Trust 21.5 through this period of disruption. Other (1.2) Economic conditions in the main UK Ixion (0.5) market remain challenging but the group Prospects 1.4 is now delivering strong performance across the majority of its contracts. The Goodwill amortisation and (8.2) Trust continues to operate two of the impairment Governments six flagship employability Actuarial (losses) and Net (4.7) contracts, Work and Health Programme, finance return on defined which commenced in January 2018 and benefit pension scheme a further contract in London, commissioned by the West London Net movement in funds 0.8 Alliance. From October 2020 the Trust commenced the (DWP) Work and Health Programme – Job Entry: Targeted The net movement in funds for Shaw Support contract variation, covering Education Trust includes the value of Central England and the Home Counties. assets acquired at the date that new schools joined the Shaw Education The Trust continued during the year with Trust, amounting to £13.7m (further its divestment programme of non-core details are included in note 25 – businesses and surplus assets as part of Business Combinations). this recovery plan which realised proceeds of £7m. The freehold sale of a The increase in turnover reflects growth principal office building was completed in in contracts, especially in the July 2020, and the sale and leaseback of employability divisions as well as an seven of the freehold properties in increase in the number of academies. Homes 2 Inspire completed mid-August The incoming resources from the activity 2020. of the group increased by £16.7m to £223.1m. Overall group net income has In addition, the sale of our boutique improved significantly, showing a surplus education consultancy; Gabbitas, which of £5.6m during the year, an increase of was considered a non-core operation, £24.0m over the prior year. Overall net was completed on 31 May 2020 for surplus on funds for the year were £0.8m consideration of £0.5m. (2019: net deficit of £50.8m). Performance since the year end has been favourable against the business plan and cash reserves have been Page 7 of 88 Trustees Annual Report 2.
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