The Shaw Trust has reported a record annual income of £296m and an expenditure of £313m due to its acquisition of more schools and growth in other services, according to recently filed documents.
Accounts for the year ending 31 August 2022 show that the Shaw Trust Group’s total income increased by £32.5m during the year, largely due to growth in existing and new contracts with local and central government.
Its expenditure grew by £78.2m to £313m, which it said reflected “growth in income and academies”.
Shaw Trust, founded 40 years ago, is the largest provider of the Department for Work and Pensions’ employment support Work and Health Programme.
Meanwhile, the charity announced that its current chair Kenneth Olisa stepped down after completing his maximum term.
Expenditure rises to £313m
In 2021-22, the group’s income rose to £296m, up from £264m the previous year, while expenditure increased by £78.2m to £313m.
The charity’s staff costs increased by £34m during the year to £189m as its average staff headcount increased from 4,773 to 5,430.
Some £107m of income was generated by Shaw Education Trust, a multi-academy trust sponsored by Shaw Trust, of which the addition of two academies during the year added £5.7m to its income.
As of 31 August 2022, the Trust operated 27 academies, one specialist independent college, two teaching schools and a school-centred initial teacher training.
Trading income from the group’s network of 24 charity retail shops was £3.2m, compared with £2.9m in 2020-21.
The charity said in the accounts that the shops saw an “increase in demand for second-hand fashion” throughout 2021-22. “This was not just down to the rising cost of living but was also driven by shoppers’ concerns about sustainability,” it said.
The group’s overall consolidated funds rose to £209.4m, up from £116.8m the year prior. This was largely because of a reduction in net pension liabilities, but also a combination of factors such as performance in the year and a revaluation reserve.
Knock-on effects of Covid-19
The charity said that the pandemic had a “significant impact” on its operations but that it quickly adapted to the challenges in 2020-21 and was able to return to “more normal operational conditions and working practices”.
“Finances remained resilient throughout this period thanks to our growth of several of our core contracts, a change in delivery methodology and careful management of liquidity,” it said.
“Although the worst of the Covid-19 pandemic is behind us the knock-on impacts remain. Economic conditions in the UK market remain challenging with significantly higher inflation than forecast, driven by energy and supply chain issues combined with an expectation of rising interest rates. These factors, exacerbated by global political uncertainty, are putting increasing pressure on household finances as well as impacting government and local authority budgets.
“The impact of the cost-of-living during the year has been significant, putting pressure on contracts as well as creating challenges with recruitment.”
New chair
The charity recently appointed Olly Benzecry as its chair as Olisa stepped down at the end of his nine-year term.
On his departure, Olisa said: “All good things must come to pass, but, as I look back on my time with Shaw Trust, I leave with a deep sense of pride in our accomplishments.
“Over the last nine years our dedicated staff have doubled the organisation’s size so that today we help more than 400,000 people a year. As one of the UK’s largest charities, Shaw Trust is proof that outsourcing to the third sector works.”
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