TURNING POINT (SERVICES) LIMITED (PRIVATE LIMITED COMPANY) FINANCIAL STATEMENTS

Transcription

1 TURNING POINT (SERVICES) LIMITED (PRIVATE LIMITED COMPANY) 31 MARCH 2014

2 CONTENTS COMPANY INFORMATION 3 DIRECTORS ANNUAL AND STRATEGIC REPORT 4-8 REPORT OF THE AUDITORS 9-10 PROFIT AND LOSS ACCOUNT 11 BALANCE SHEET 12 NOTES TO THE

3 COMPANY INFORMATION DIRECTORS: SECRETARY: REGISTERED OFFICE: Sarah Wood OBE (Chair) Dr Angela Lennox CBE Caroline Bailey Christopher Parker Paul Picknett (appointed March 2014) John Doran Lord Victor Adebowale CBE (Chief Executive) David Hoare Andy James Julie Bass Lord Victor Adebowale CBE Standon House 21 Mansell Street London E1 8AA REGISTERED COMPANY NUMBER: AUDITORS: BANKERS: SOLICITORS: Crowe Clark Whitehill LLP Arkwright House Parsonage Gardens Manchester M3 2HP Barclays Bank PLC 1 Marsden Street Manchester M2 1HW Eversheds Eversheds House 70 Great Bridgewater Street Manchester M1 5ES 3

4 DIRECTORS ANNUAL REPORT AND STRATEGIC REPORT The Directors present their report and the financial statements for the year ended 31 March Principal Activity The principal activity of the company continued to be the provision of support and rehabilitation services for persons with drug and alcohol issues, mental health problems, and learning disabilities, in addition to other complex needs. Review of the Business Turning Point (Services) Ltd ( TPS ) is part of the Turning Point group, who are a leading health and social care organisation that works with and supports people with complex needs to turn their lives around. TPS provide core services in the areas of substance misuse, mental health, learning disabilities and specialised employment support which are delivered through a sub-contract arrangement with the group parent, Turning Point. Every hour, the Turning Point group issues 80 prescriptions, and a client leaves one of our substance misuse services drug or alcohol free. Every day, the Turning Point group gives support to 2,000 people, and successfully discharges 80 people from our care. Over the course of a year the Turning Point group manages almost 44,000 new referrals to our services including a large percentage of selfreferrals. The climate for the Turning Point group remains challenging with external pressures on costs and operating models continuing. It remains important to us to foster and maintain good relationships with commissioners to ensure our services meet the needs of the communities we serve. We continue to innovate, creating effective models of service user engagement, such as the peer mentoring work across our substance misuse and mental health services. Turning Point Group Substance Misuse Business Unit Summary A preponderance of service users in the Public Health England groupings of Opiate and Alcohol Only New service launches including in Wiltshire, Somerset, Kent and Gloucestershire More than 18,000 referrals into our integrated services in 2013/14 432,000 needles returned to us through our needle exchange harm reduction services Turning Point Group Mental Health Business Unit Summary New Business Unit strategy has been created and ready for implementation in 2014, with seven clear objectives aimed at delivering our strategic goals including outstanding service quality and increased market share. The Turning Point group operates consistently above the national target in moving clients to recovery 70% of our mental health clients are supported by our IAPT Talking Therapies services 1 in 4 service users are diagnosed with both severe depression and severe anxiety 4

5 DIRECTORS ANNUAL REPORT AND STRATEGIC REPORT (CONTINUED) 1 in 5 of our clients have complex needs involving both mental health and substance misuse issues Turning Point Group Learning Disability Business Unit Summary Over 75% of our service users are supported in Supported Living and Residential Care services Ever increasing focus on service user empowerment, for instance through the People s Parliament initiative Service user employment opportunities developed in both paid and voluntary settings Turning Point Group Employment Business Unit Summary Supported over 2,000 customers on the margins of the labour market to improve their skills and address multiple barriers to employment, obtain paid work and then sustain themselves in employment Our Birmingham EESPro service achieved 186% of the commissioner target for soft outcomes such as training, and 112% of the commissioner target for hard outcomes including job entries The Rightsteps Employment service was commissioned by a range of organisations including Work Programme prime contractors, Work Choice providers, Jobcentre Plus and a number of local authority employment services Turning Point Group Primary Care Business Unit Summary Transformational work at CHIP (Camden Health Improvement Practice) Building on the success of the pilot programme undertaken with the University Hospital of South Manchester and the University Hospital Aintree on self-management of long-term conditions Continuing to place our Connected Care model of community commissioning and engagement at the heart of the Turning Point way of working with projects undertaken in with CCG s and local authorities. Financial Performance Turning Point (Services) Limited has seen turnover rise from 54m to 65m. This is largely due to the new business won in Gloucester, Wiltshire and East Kent in our substance misuse business unit. This extra business has pushed up our working capital requirements. Generally trading conditions have been tough, with commissioner cuts and declining margins. During the year, the company made a Gift Aid transfer of 1,426k to Turning Point. 5

6 DIRECTORS ANNUAL REPORT AND STRATEGIC REPORT (CONTINUED) Results and dividends The results of the company for the year are set out in the financial statements. The directors do not recommend the payment of a dividend. Directors The directors do not hold any beneficial interest in the share capital of the company. Executive Summary of Turning Point Group s Strategic Objectives The Turning Point group, and the health and social care sector as a whole, has experienced a tough trading environment for the past few years. This situation will continue for the immediate future at least. With public sector funding cuts, there is commissioner pressure on pricing both through retendering and price reductions within existing contract terms. This presents significant challenges to what was already a low margin business model. The Turning Point group continues to prioritise activity under headings derived from our five-year strategy, written and launched in In a challenging health and social care market we need to be responsive to changes and able to adapt our approach to meet the needs of our commissioners, clients and the wider community. We remain on track to deliver our overall strategy and have made progress in the key areas of: Turning more lives around Building better lives for those with a Learning Disability Developing new markets Delivering value for our customers Developing our people For further details of service delivery, risk management, outcomes, etc, please refer to the consolidated annual accounts of the company s sole member, Turning Point, Company No Managing Risk How do we manage risk? Like all organisations the Turning Point group recognises that it operates in a world of uncertainty. Events that are both foreseen and unforeseen can and will occur resulting in disruption to the achievement of our strategic objectives and business aims associated with the markets in which we operate. The purpose of our risk management and assurance framework is to ensure we manage the risks associated with these events and thereby minimise the levels of uncertainty and disruption as far as is possible. The associated assurance framework serves to provide a flow of both internal and external assurance reporting on the effectiveness of controls put in place to mitigate the risks. The organisational risk appetite is set and agreed by the board. 6

7 DIRECTORS ANNUAL REPORT AND STRATEGIC REPORT (CONTINUED) Principal risks & uncertainties The Turning Point group operates in a business with significant risks clients with substance dependency, mental health issues and learning disabilities requiring intensive care and support including clinical prescribing of medicines. Our strategic and business objectives give rise to certain risks and our operational processes have inherent risk in line with the type of clients for whom we provide care and support. We also operate in fragmented markets where significant price pressure results in a low margin business model. This means we have significant risks and uncertainties around costs and pricing which require robust management. Statement of Directors responsibilities The directors are responsible for preparing the director s report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that the statements give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: Select suitable accounting policies and then apply them consistently Make judgements and estimates that are reasonable and prudent Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company s transactions, disclosure and financial position with reasonable accuracy at any time, and enable them to ensure that the financial statements comply with the Companies Act They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Going concern The directors have reviewed the projected cash flows for the company, for the foreseeable future and not less than twelve months from the date of approval of the accounts, and they are satisfied that the company will be able to meet its liabilities as they fall due. 7

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9 INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF TURNING POINT (SERVICES) LIMITED We have audited the financial statements of Turning Point Services Limited for the year ended 31 March 2014 which comprise of the Profit and Loss Account, the Balance Sheet, the Reconciliation of Movements in Shareholders' Funds and the related notes numbered 1 to 11. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of directors and auditors As explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors. Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Directors Report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on financial statements In our opinion, the financial statements: give a true and fair view of the state of the company's affairs as at 31 March 2014 and of its profit for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act

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11 COMPANY NUMBER PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2014 Notes TURNOVER 65,863 54,637 Operating Costs (64,395) (53,422) OPERATING PROFIT 1,468 1,215 Interest receivable and similar income 0 0 Interest payable and similar charges 0 0 Gift Aid (1,426) (976) PROFIT FOR THE YEAR BEFORE TAXATION Corporation tax PROFIT FOR THE YEAR AFTER TAXATION Transfer from reserves 0 0 PROFIT FOR THE YEAR AFTER TRANSFERS ACCUMULATED PROFIT AT BEGINNING OF YEAR ACCUMULATED PROFIT AT END OF YEAR The company s turnover and expenses all relate to continuing operations. The company has no recognised gains or losses other than the results for the year which have been calculated on the historical cost basis. 11

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13 NOTES TO THE FOR THE YEAR ENDED 31 MARCH ACCOUNTING POLICES The financial statements have been prepared in accordance with applicable standards. (a) Accounting convention The financial statements are prepared under the historical cost convention. (b) Going Concern After making enquires, the Directors have a reasonable expectation that the company has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Directors Responsibilities on page 7. (c) Turnover The turnover represents amounts invoiced, excluding value added tax, in respect of the supply of support services. 2 ACTIVITIES The turnover, results for the year and net assets are attributable to the principal activity. The whole of the turnover and result for the year is attributable to the company's continuing operations. The company operates in the United Kingdom and the whole of its turnover is to the United Kingdom market. 13

14 NOTES TO THE FOR THE YEAR ENDED 31 MARCH PROFIT ON ORDINARY ACTIVITIES The profit on ordinary activities is stated after charging: Auditors' remuneration - Audit fee Other services 4 4 During the year, the auditors invoiced 4k (2013 4k) for Turning Point (Services) Ltd, which related to Corporation Tax calculations TAXATION Analysis of charge in year Current tax: UK Corporation Tax charge for the year 0 0 Factors affecting tax charge for the year Profit/(loss) on ordinary activities before tax 1, Profit/(loss) on ordinary activities before tax multiplied by standard rate of Corporation Tax in the UK (23%/24%) Effects of: Gift Aid (328) 0 Losses brought forward utilised in the period 0 (45) Capital allowances (10) (12) Current tax charge for the year STAFF COSTS Included in operating costs are recharges of staff costs which are paid through the parent undertaking, Turning Point. 6 DIRECTORS The directors received no emoluments from the company during the year (2013 Nil). 14

15 NOTES TO THE FOR THE YEAR ENDED 31 MARCH DEBTORS Due within one year: Due from statutory services 3,770 1,855 Less: provision for bad debts (87) (144) Net statutory debtors 3,683 1,711 Due from Turning Point (Charity) 487 1,534 Prepayments and accrued income ,936 3,410 8 CREDITORS (AMOUNTS FALLING DUE WITHIN ONE YEAR) Accruals and deferred income 1,469 1,987 Other tax and social security costs 2, Consolidated account cash at bank ,993 2,815 9 SHARE CAPITAL Authorised: Ordinary shares of 1 each Allotted, issued and fully paid: Ordinary shares of 1 each

16 NOTES TO THE FOR THE YEAR ENDED 31 MARCH ULTIMATE PARENT UNDERTAKING AND CONTROLLING PARTY The company is a wholly owned subsidiary of Turning Point, a charity registered and incorporated in the United Kingdom. A copy of that charitable company s accounts can be obtained from the Registrar of Companies. 11 RELATED PARTY TRANSACTIONS As at the 31 st March 2014, Turning Point owed Turning Point (Services) Ltd 487k (2013 1,534k) in respect of cash receipts received and Gift Aid. 16