Our finances Following the pandemic, BPAS experienced a period of financial distress. In 2020/21 through to 2022/23 BPAS made a deficit each year and in both March 22 and March 23 had a negative cash balance, relying on a bank overdraft. A financial recovery plan was approved by the Board in September 2022 and was successfully implemented in the final half of 2022/23. This led to a much-improved financial position in 2023/24. This plan involved: • Divesting of the fertility business • Reducing back-office costs • The sale and leaseback of the Bournemouth property • A comprehensive review of pricing across the whole of the customer base In 2023/24 BPAS made a financial surplus of £5.7m. Income increased compared to the previous year by 16%. This was mainly due to fairer pricing agreements with NHS commissioners. Despite savings made through the financial recovery plan, overall costs remained static compared to the previous year as additional costs were incurred in both operational and central staffing and premises. These cost increases were in line with meeting CQC requirements and improving clinical safety with extra investment in areas such as safeguarding. These cost increases continued into 2024/25 budget setting. BPAS holds £5m of freehold properties on its balance sheet and is expected to have c.£3.5m in cash reserves at the end of 2023/24. The position is much improved but for BPAS to continue to enhance its financial sustainability, liquid reserves need to be built up to protect the organisation in the event of contract loss and allow time to resize the organisation. Year on year moderate surpluses need to be generated to ensure that BPAS can invest in essential infrastructure and innovation. The reserves policy is currently being reviewed as part of the overall BPAS strategy development. 8 £5.7M OVERALL SURPLUS £56.6M TOTAL INCOME +16% INCREASE IN INCOME
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