Our Patients

financially and in time, but will be crucial to future proof the Charity and its future service provision although the timing of the next steps remain hard to define in the current environment.

Income Generation Strategy

Although funds have been designated to support the new combined airbase and head office, this will be a major project with the cost yet to be established. This will need to be funded at a time when costs have increased and are expected to increase further as the level of missions have increased, while income has been impacted by the pandemic. Although significant reserves, cash and investments are in place to manage the immediate risk exposure, costs are expected to exceed income in the short and medium term with the potential for these shortfalls to be significant if legacy income does not match the levels of the last two years. Even when including £4.8 million of legacy we are budgeting for a loss of £2.4 million in 2023. Although this level of legacy income is below the two most recent years it is comfortably above the five year average of £4.3 million and it should be noted that £4 million of legacy income had only even been achieved in one year prior to 2021.

For this reason the creation and success of the new income generation strategy in will be vital in ensuring income can cover costs going forwards, to put the Charity in a position where it can maintain the current service, ensure essential assets such as the aircraft can be replaced efficiently and ideally enhance its service further to benefit patients.

While the Strategy is expected to require immediate investment to ensure that the right resources are in place to deliver on expectations, the return on this investment is not expected to be as immediate. Clearly defined metrics will therefore be important as different ideas are tested to ensure that the right path is being followed and that the expected benefits will flow. This investment is likely to include additional staff which will also take time to recruit and settle in. With this combination of increased costs and a small initial impact on income, 2023 is expected to be a difficult year financially, but the reserves and cash are in place to support this transition in 2023 and beyond.