This section explains how we raise the income to care for sick and injured pets.
We predicted that 2011 was going to be a challenging year given the economic outlook and in particular the need to:
- Accommodate growth in demand for our PetAid services.
- Control costs and cash when our forecasts were indicating an operating deficit.
- Generate income at a time of severe competition for the donor pound
In line with our forecasts, there was a deficit in net incoming resources before other recognised gains and losses of £1.1 million (2010: £1.3 million). In addition, there was a reduction of £4.9 million (2010: gain £6.2 million) in the value of our investment fund which is the result of volatile investment markets during 2011.
Regardless of these challenges we achieved record income of £93.5 million (2010: £92.7 million), despite legacy income falling by 3% to £38.1 million (2010: £39.3 million). Sales of preventive services increased by 9% to £5.0 million and client contributions increased by 14% to £8.0 million.
In our retail operation, donated goods sales were 4% higher than 2010, despite tough trading conditions on the high street. This was in part due to improved stock distribution processes and, importantly, costs were kept under tight control despite external cost pressure. This combination of factors led to an increase in retail profits of 31% compared to 2010.
Voluntary income (donations and legacies) is PDSA’s most important income source – 64% of total income. It is PDSA’s long-term aim to reduce reliance on this area by increasing sales from emerging income streams.
Raising voluntary income is not without cost – but PDSA works hard to keep costs low. The cost was 16p per pound (£), compared to 15p last year.
Spending on our mission grew by £0.8 million to £61.6 million in 2011 and exceeded our ‘net incoming resources available for charitable activities’ by £0.9 million. Some PetAid services are contracted to local veterinary practices in order to increase the reach of our work in a cost-efficient way.
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