A HOSPICE is starting the year with ‘renewed optimism’ for its future despite slipping further into financial deficit.

Helen & Douglas House has published its first set of accounts since taking drastic measures to curb expenditure, which reveal that the East Oxford children’s hospice lost £2.424m within the last financial year.

This is partly due to a decrease in legacies (donations left in wills), and poorer performance at some of its charity shops, but the hospice remains confident that controversial cutbacks last year will secure its sustainability.

READ AGAIN: Helen & Douglas House to scrap adult services and make 60 redundancies

The charity’s chair of trustees Lord Ian Blair, writing in the accounts, said: “The decisions [made in 2018] were difficult, courageous and significant and by taking them they have secured the organisation’s future.

“We are moving forward in this new era with much to be proud of, much to be thankful for and with renewed optimism for our long-term future.”

This month marks one year since the hospice announced it would close its adult services at Douglas House, after admitting it could not afford to keep it going.

The latest finances cover the year ending March 2018, before the closure of Douglas House in June, so do not account for the impact of the closure.

The deficit in 2018 is the largest in recent years, comparative to a £0.6m deficit the previous year and £1.6m in 2016.

Some of the extra expenditure came from redundancy payments made as part of the cutbacks, totalling £120,763.

Donations were up by 15 per cent, however, including £25,000 donated by All Saints Sisters of the Poor especially to fund youth work.

The convent is that of which Sister Frances Dominica is a part of, who founded the hospice but was asked to leave in 2015 following unproven allegations of historic abuse.

READ AGAIN: Sister Frances wants back in at Helen & Douglas House

Writing in the accounts, the charity’s outgoing chair of trustees Elizabeth Drew said financial sustainability ‘remains a critical strategic priority for the organisation’.

She wrote: “I remain inspired and humbled by the amazing children and families we care for and as I retire I do so with complete confidence and belief that families in need will always be able to rely on us to care for them.”

She recognised the decision to close Douglas House was ‘devastating’ for staff and patients but said it was ‘absolutely necessary to take decisive and proactive action to safeguard the charity’.

Ms Drew added that the charity is in ‘safe hands’ with Lord Blair, who took up post in March.

The accounts detail a new retail strategy and ‘re-focused model of care’, and even discusses the potential to reintroduce adult services when finances are healthier.

It states: “It is our aspiration to be able to provide a service for young adults in the future, however, this is dependent on an increase in our income to a level at which can be sustained.

“Whilst 2017-18 saw a dramatic re-shaping of our service and consolidation of our core offer to children and their families, we are establishing a sustainable platform from which to develop a more flexible care model.

“The planned organisational restructure in 2018/19 will ensure that further draw-downs to supplement net cash flow will not be necessary and that investments can begin to be replenished.”

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The hospice also plans to sell its Aylesbury warehouse within this financial year, which closed last year as part of changes to its retail operation.

Writing in the accounts Clare Periton, chief executive of the charity, said the closure of Douglas House was ‘sad but necessary’.

She said: “This past year has meant both change and consolidation for the organisation and this is likely to prevail for the year ahead too.

“However, as difficult as these decisions were, we have made positive and significant progress in our mission to improve our service and financial sustainability.”

The accounts have not yet appeared on the Charity Commission’s website, but have already been published on the hospice’s.