A professional services firm set up as a subsidiary of Medway’s community healthcare social enterprise lost more than £500,000 in its first two years, accounts show.
Medway Community Healthcare – which was part of Medway Primary Care Trust before being ‘spun out’ of the NHS – says its subsidiary Gateway Assure is now making a profit.
However, the first two years’ accounts show Gateway Assure made a cumulative loss of £518,273 and Medway Community Healthcare has made a provision of £527,335 against its loan to the organisation and outstanding debtor balances.
Gateway’s website says it was set up in 2012 to provide professional services to “private, public and third sector clients in the UK and internationally.” These include assurance services, business consultancy, risk management, training and executive coaching. It lists three regional offices.
Martin Riley, managing director of Medway Community Healthcare said the social enterprise set up Gateway Assure “to diversify our business, provide strong assurance services to us, generate more income and ultimately give our health services more stability”.
He told HSJ that while Gateway, “like most new enterprises” had been unable to show a profit in the first two years, it was now in the black.
He added: “In its first two years, Gateway Assure primarily served the needs of Medway Community Healthcare as its major client, providing us with assurance services as a newly formed social enterprise; our financial support to Gateway reflects this as well as our belief that this is a strong, long term investment. Now we receive a ‘free’ assurance service through Gateway Assure, which reduces our overheads in the longer term.
“Gateway Assure has a new chief executive who has achieved a profit in the last six months and delivered a plan for £100,000 profit in 2015-16. Gaining new clients and building a strong reputation was always going to take time, but in the longer term Gateway Assure will be a cornerstone of our stability, safeguarding our health services by delivering income we can rely on year after year.”