Investment gains, better than expected retail performance and an emergency appeal that raised more than £12m helped the older people’s charity Age UK turn a £8.3m deficit into a £9.4m surplus last year.
The charity’s latest accounts show that for the year to the end of March 2021, it recorded an income of £127.1m and expenditure of £125.1m.
But when gains on investments of £7.5m were factored in, the charity made a surplus of £9.4m.
The charity said last year it had made 400 people redundant and closed 133 of its almost 400 stores as it looked to make annual savings of £15m in the face of the coronavirus pandemic.
The accounts show that income from donations and gifts increased by more than £14m year on year to £27.7m.
“Our fundraising colleagues captivated public and corporate attention through our Coronavirus Emergency Appeal, raising an incredible £12.2m of which 70 per cent supported local communities via our national and local partners,” the accounts say.
“Spurred on by the success of the appeal, we’ve been bold in our fundraising this year, trying new approaches and reaching out to new audiences, which has led to strong results and exceptional levels of support from funders new and old.”
The accounts show the charity claimed almost £9m from the government’s Coronavirus Job Retention Scheme due to the enforced closure of its almost 400 stores.
The charity reduced spending by more than £11m year on year.
The accounts say: “Our financial recovery plan is on track. We are making better than expected progress on restoring our free reserves threshold, in part due to a significant gain in investments close to year-end.
“Overall, we achieved a net surplus of £9.4m due to stronger performance than anticipated in retail when shops could open (resulting in a smaller than expected operating deficit), the much needed financial assistance that furlough and other government grants offered, and cost savings of £7.5m.”
The charity spent £2.8m on redundancy payments, up from £1.4m in the previous year.
The accounts show that Age UK’s income available for charitable activities increased to £71.2m, up from £58.4m in the previous year.
They say that Steph Harland, the chief executive of the charity, stepped down in September 2021 after three years in the role.