Financial performance

Income

The group generated income of £7,146k (2019 £8,888) which comprises unrestricted income amounting to £5,201k (2019 £6,263k) and restricted income of £1,945k (2019 £2,625k). The majority of unrestricted income is generated from the Scottish Poppy Appeal, which raised £2,279k (2019 £2,948k), the equivalent of 44% (2019 47%) of unrestricted income.

Whilst it has been a challenging year because of the wider economic conditions and lockdown restrictions due to Covid-19, the charity has adapted and sought new ways of generating income by rolling out a wider digital offering in recognition of these challenges.

Other unrestricted donations and income raised from various fundraising income streams such as raffles, trusts, legacies and regular supporters amounted to £1,837k (2019 £1,712k), an increase of 7%. Despite a direct impact of main events being cancelled due to lockdown restrictions, legacy income has increased from last year. Income from the investment portfolio generated £391k (2019 £393k) and Lady Haig’s Poppy Factory continue to support group activities with the production and distribution of poppies, wreaths and Remembrance symbols and contributed £529k to the group unrestricted income total (2019 £570k).

Expenditure

Unrestricted expenditure amounted to £6,061k (2019 £6,381k) highlighting a reduction in overall spend. This is reflective of the desire to ensure charitable funds are utilised in the most cost effective way possible and always striving for value for money.

We are met with an increasingly challenging fundraising environment and, in addition to adapting our income generation model, we will continue to control costs to ensure financial sustainability going forward to meet the needs of our beneficiaries. Whilst overall expenditure has reduced, the cost of charitable activities has increased by 5.6% to £3,419k (2019 £3,233k), which maintains our commitment to the provision of welfare services to support the needs of the ex-Service community in Scotland and reflects the level of resource required to meet the continuing need. Restricted income and expenditure for the year amounted to £1,946k (2019: £2,625k) and £1,780k (2019: £2,365k) respectively and the Group has total restricted funds of £3,346k (2019: £3,181k) at the year end. Further details can be found in note 19 of the annual accounts.

During the year, the group have utilised the UK Government furlough scheme and received £156k of income. For the purposes of the accounts this has been treated as a restricted grant income.

GOING CONCERN

Poppyscotland is a subsidiary of the Royal British Legion and whilst the charity is dependent on the commitment and generosity of the Scottish public to provide funds through the annual Poppy Appeal and a range of other year-round fundraising activities, the level of investment continues to provide financial security to the charity. The Royal British Legion will also ensure that Poppyscotland has sufficient financial resources to deliver all planned services in Scotland and will meet any agreed deficit in funding if required. On this basis, the Trustees are confident the charity will continue to function as a going concern for at least one year from the date of signing the accounts and for the foreseeable future.