The transfer of the management of the care homes from Elizabeth Finn Care (EFC) to our wholly owned subsidiary, Elizabeth Finn Homes Limited (EFHL), was effective from 1st April 2005 and has already made a positive contribution to both our charitable and business objectives. The total number of beneficiaries that we support has increased by 15.6% to 2,308 and the total expenditure counselling, grants and allowances increased by 18% to £3.9m. The care homes significantly exceeded their budgets and showed an operating surplus of £0.8m for the year compared to a deficit of £0.2m in 2005.
Refurbishment expenditure for the care homes increased significantly from £2m in 2005 to £2.8m. This increase in expenditure includes significant improvements to The Lodge, Exeter, where we are providing 19 additional bedrooms which should be completed during October 2006.We also saw the closure of Condover House, by its owner, the Florence Cohen Trust, in March 2006.
During the year, EFC’s voluntary income fell by £0.3m to £3.5m, mainly due to fewer legacies and a lower level of donations. Income from voluntary contributions, and particularly from legacies, is vital to the financial health of EFC and we will be putting significant additional energy into increasing our voluntary sources of income during 2006 and 2007.
Taking all the above factors into account, EFC’s net outflow of funds as operating deficit for the year was £2.5m compared to £1.6m in 2005. However, during the year, the Trustees were also able to achieve a substantially higher level of capital gains at £7.2m from EFC’s long term investments compared to gains of £2.0m in 2005. Our investment gains in the year not only offset the operating deficit, but also the funding deficit of £1.3m in the defned benefits pension scheme.
Overall, EFC’s total funds have increased during the year by £4.1m to £48.8m (2005 increased by £0.4m to £44.7m). Taken together, the improved performance of the Homes and the current investment gains have enabled the Trustees to set a course for continued growth in benefi ciary numbers and to consider the expansion of the range of other support services.
Richard Down, FCA
Honorary Treasurer
