FINANCIAL INFORMATION
Rehab Group Finance
In 2011 the Rehab Group reported an operating surplus of €2 million, representing almost 1 per cent of turnover. Turnover fell by 8 per cent to €185 million, from €191 million in 2010 which was not down to a reduction in activity but rather a change in how the Group accounts for certain lottery sales. Net cash at year-end was marginally better than the previous year as the Group continues to manage working capital closely. The net cost of servicing debt fell to €100,000.
The Group has adopted Financial Reporting Standard 17 on Retirement Benefits and, in 2011, the liability in respect of the defined benefit pension scheme increased by €9.4m to €32.8m. In common with many similar schemes, the effect of the poor performance in global equity markets and the change in bond yields in 2011 had a serious impact on this liability. The company commenced a review of its pension provision with a view to addressing this deficit over the coming years.
In Ireland, some commercial activities had a difficult year in 2011; with some restructuring and refocusing, it is hoped to see the situation improve in 2012. RehabCare, in particular, saw further funding cuts whilst significant savings have been made across the Group in non-pay costs.
In the United Kingdom, TBG Learning continued to perform well and 2011 saw the commencement of a new joint venture with Interserve plc, Rehab JobFit. The Chaseley Trust’s services are fully occupied and the Group’s domiciliary care services in Scotland were restructured in 2011.
The Board and management of the Group are committed to maintaining a high standard of corporate governance. The Board’s Audit Committee, chaired by Liam Hogan, oversaw the work plan for the internal audit function in 2011 and formally approved the work plan for 2012.
As an overall not-for-profit organisation, resources are committed to services for people with disabilities and other socially-disadvantaged groups. As the organisation has a significant number of staff, and with more than 54,000 people and their families benefiting from the services provided annually, the Group needs to create and hold reserves to support itself as an independent, viable undertaking. The Group operates ‘for profit’ commercial activities and also operates fundraising activities such as pools and lotteries to ensure that this is achieved and also to support innovation, new business development and its capital requirements.
During the year €7.8 million was spent on capital expenditure (€6.2 million in 2010) which was funded in part by way of capital grants of €3.3m (€2.5m in 2010) from various agencies with the balance coming from fundraising and the Group’s own resources. Finally, movement in the €/£stg exchange rate during the year had a positive impact on reserves; however, this combined with the significant increase in the defined pension scheme liability, and the surplus for the year, meant the Group’s net assets fell to €50.5 million.
The Group acknowledges with gratitude all of its customers both in the private and public sectors.
The Rehab Group (Extracts from Consolidated Financial Statements)
| Consolidated Revenue Account and Statement of Recognised Gains and Losses |
2011 €'000 |
2010 €'000 |
|---|---|---|
| Turnover | 184,721 | 191,082 |
| Surplus attributable to the Group | 2,046 | 2,367 |
| Actuarial loss in respect of pension scheme | (11,225) | (386) |
| Revaluation of tangible assets | 4 | 5,438 |
| Foreign currency translation adjustments | 254 | 247 |
| Total recognised losses and gains since last annual report | (8,921) | 7,666 |
| Consolidated Balance Sheet as at December 31st |
2011 €'000 |
2020 €'000 |
| Fixed Assets | 119,245 | 119,918 |
| Current Assets | ||
| Stocks | 1,131 | 1,154 |
| Debtors | 21,692 | 17,761 |
| Bank | 38,416 | 37,738 |
| 61,239 | 56,653 | |
| Creditors – amounts falling due within one year | (38,417) | (34,471) |
| Net Current Assets | 22,822 | 22,182 |
| Total assets and less current liabilities | 142,067 | 142,100 |
| Provision for liabilities and charges | (6,563) | (6,956) |
| Creditors - amounts falling due after more than one year | (52,128) | (52,287) |
| Defined benefit pension scheme – net deficit | (32,850) | (23,410) |
| Net Assets | 50,526 | 59,447 |
| Capital & Reserves | 83,376 | 82,857 |
| Defined benefit pension scheme deficit | (32,850) | (23,410) |
| Total reserves | 50,526 | 59,447 |
