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2021-03-31-accounts

COBALT HEALTH ANNUAL REPORT 2020/21

www.cobalthealth.co.uk

Charity REGISTRATION NUMBER: 1090790 COMPANY NUMBER: 04366596

CONTENTS

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Chair's statement 4
About us, our vision and our values. 5
Year at a glance 6
Strategic and Trustees' report 7
Our objectives 8
Coronavirus impact and response 9
Diagnosis – Achievements, impact and the future 11
Research – Achievements, impact and the future 14
Education - Achievements, impact and the future 15
Clinical quality assurance 17
Fundraising 18
Financial overview 23
Grant making policies, risk management 27
Structure, governance and management 28
Statement of Trustees’ responsibilities 29
Independent Auditor's Report to the Trustees of Cobalt Health 30
Statement of Financial Activities 34
Balance Sheet 35
Cash Flow Statement 36
Notes to the Financial Statements 37
Trustees and Advisers 57
In Memory of Cobalt Patron, Clive Richards CBE KSG DL 58
Glossary of terms 59
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Cobalt Health Annual Report 2020/21 – P.3

CHAIR'S STATEMENT

This has been a challenging year for everyone, and yet a remarkable year for Cobalt. The Trustees are proud of how the team stepped up to support our colleagues in the NHS across the country to face the challenges of providing essential services in a COVID-19 environment.

demonstrated immense flexibility and adaptability to help us deliver the services.

Thank you to our volunteers and the many generous people who have contributed to the Charity

In 2020-21 the Charity took significant strides forward; acquiring additional mobile CT scanners to respond to the pandemic, establishing sites at the local Nightingale hospitals and working with NHS England to support 30 hospitals around the country, where there was the most need for our services for up to 24 hours a day. Over 110,000 patients were scanned, a 35% increase from the previous year, which vividly demonstrates how Cobalt up scaled at very short notice to meet the exceptional demands for healthcare brought about by the pandemic. Our income for the year was £21.7m, an increase of £8m on 2019/20. The increased reserves this generated will provide financial stability in an uncertain world, whilst enabling the further expansion of services, including an ambitious programme of capital investment in the next generation of scanners, an increase in research activities, and significant development of our education programme.

through donations, fundraising activities, legacies, and awards from trusts. Events that were postponed are being rescheduled. The income generated through all our charitable activities is key to being able to deliver the Charity’s objectives.

In April 2021, sadly our patron, Clive Richards, passed away (see p.58). Clive and his wife Sylvia have been generous benefactors of Cobalt. The CT scanners their charity kindly funded have been active during the year providing the NHS COVID-19 service and continuing to support lung cancer screening in some of the most deprived areas of the country.

Finally, I would like to thank my fellow trustees for their support, wisdom, and time, especially in navigating the fast-changing environment, thereby enabling Cobalt’s team to respond quickly to the challenges and opportunities presented. Cobalt has ambitious plans for the next few years when we will acquire more state-of-the-art equipment, deliver enhanced education programmes and support internationally important research. It is an exciting time to be associated with Cobalt. The Board of trustees is immensely proud of what the charity has achieved in the most pressing of circumstances.

Our charitable activities continued. We maintained the funding for four research nurses and Megan Willsher, Cobalt’s Teenagers and Young Adults with Cancer Specialist Nurse, provided invaluable support to young people and their families. Dr Ayah Nawaar, Cobalt’s first Radiology Research Fellow jointly published several papers, including studies on the interpretation of PET/CT[(1)] scans within the COVID-19 pandemic. Our educational programme for healthcare professionals, became virtual, which enabled us to expand the training nationally.

Neil Holbrook

Chair of the Board of Trustees

All of this would not be possible without the ongoing support of our partners and colleagues in the various NHS Trusts who have worked with Cobalt and

ABOUT US

working in partnership with the NHS in many deprived areas of the country.

Cobalt Health (Cobalt) is an independent medical Charity established in 1964 to help people affected by cancer, dementia and other conditions. Each year we provide diagnostic imaging for over 110,000 patients at imaging centres in Cheltenham and Birmingham, and through a fleet of mobile MRI[(1)] and CT[(2)] scanners supporting NHS hospitals and other medical facilities across the UK.

We endeavour to deliver improvements in clinical diagnosis and treatments, mainly relating to cancer and dementia. This is achieved by investing in cutting-edge technology with the aim of supporting and participating in local, national and international research working with leading experts in the field. We also work closely with the Queen Elizabeth Hospital Birmingham to deliver specialist research imaging for the Institute of Translational Medicine.

We focus on offering equipment and services not generally available within the NHS to support many patients. Our imaging centres house the latest technology designed to deliver superior image quality, improve patient comfort and enable shorter scanning times.

By delivering a diverse training and education programme for medical professionals we aim to enhance their professional development.

Using ultra-low dose mobile CT, we are the leading provider of lung cancer screening services in the UK,

(1) (2) see glossary page 59.

OUR VISION

To pioneer innovation in medical imaging diagnosis by investing in equipment, integrated research and education, to improve outcomes for patients now and in the future. OUR VALUES I C A R E INNOVATIVE CARING ACCESSIBLE RESPECTFUL ETHICAL

(1) See glossary of terms page 59

P.4 – Cobalt Health Annual Report 2020/21

Cobalt Health Annual Report 2020/21 – P.5

110,000 PATIENTS SCANNED A 44% INCREASE COMPARED TO 2019/20

HOSPITALS SUPPORTED DURING 30 COVID-19 PANDEMIC 87%

COBALT RADIOLOGY RESEARCH FELLOW APPOINTED

OF CLAUSTROPHOBIC PATIENTS SCANNED SUCCESSFULLY USING OUR SPECIALLY DESIGNED SCANNERS

MOBILE CT SCANNERS DEPLOYED TO SUPPORT THE NHS NIGHTINGALE HOSPITALS UP TO 24 HOURS PER DAY

STAFF SAID THEY ARE SATISFIED THAT THAT CHARITY IS DOING ALL IT CAN TO SUPPORT 94% THE NHS DURING THE PANDEMIC[ (3)]

OVER 50 RESEARCH PROJECTS AND THE LARGEST PROVIDER OF CLINICAL TRIALS TO DEVELOP NEW LUNG CANCER SCREENING AND IMPROVED CANCER AND DEMENTIA TREATMENTS IN THE UK, SUPPORTING 7 NHS PROGRAMMES

INVESTMENT IN CUTTING EDGE £3.2M CT AND MRI SCANNERS

PATIENTS SAID THAT THEY WOULD 99.5% RECOMMEND COBALT[(4)]

214

100% STAFF WOULD BE HAPPY TO RECOMMEND COBALT TO THEIR FRIENDS OR RELATIVES[ (3)]

GOOGLE REVIEWS 4.8 OUT OF 5 STARS AND 49 FACEBOOK REVIEWS 5 OUT OF 5 STARS

TRUSTEES' STRATEGIC REPORT

Cobalt trustees present their Strategic Report and the Financial Statements for the year ended 31 March 2021. The Charity reports its achievements for 2020/21 against its core activities in Diagnosis, Research and Education.

Public Benefit

When reviewing the aims and objectives and planning future activities, the trustees of the Charity have referred to and believe they have complied with the duty of section 17 of the Charities Act 2011. This relates to having due regard to the Charity Commission’s published general guidance on public benefit. In particular, to its supplementary public benefit guidance on fee-charging. The trustees have also considered how planned activities will contribute to the aims and objectives they have set.

The trustees believe that this report demonstrates the Charity’s commitment to providing public benefit through a range of activities, including the advancement of diagnostic practice, the sharing of knowledge with healthcare practitioners and the provision of low cost and free scans for patients to assist in their diagnosis and treatment.

The trustees are also pleased to report the Charity’s response to the COVID-19 pandemic. Working with NHS England, Cobalt has supported hospitals across England by providing urgent oncology scans. Cobalt was also on standby to supply a CT imaging service for two Nightingale field hospitals.

(3) Staff survey results April 2021. (4) Patient survey results Jan – May 2021

Cobalt Health Annual Report 2020/21 – P.7

P.6 – Annual Report 2020/21 Cobalt Health

OUR OBJECTIVES

The detection, diagnosis, treatment and prevention of sickness, in particular cancer, in persons living in Gloucestershire, Herefordshire, Worcestershire and the West Midlands, and such other areas of Great Britain and by such means as the trustees may from time to time decide, including the provision and maintenance of equipment and to provide or assist in the provision of education and research into methods of detection, diagnosis, treatment and prevention of sickness, in particular cancer and dementia and publication of any useful results.

The Charity’s articles include the powers to develop, deliver and promote services that detect, diagnose, treat and prevent sickness,in particular cancer and dementia.

When reviewing whether the Charity has been successful the trustees consider:

CORONAVIRUS IMPACT AND RESPONSE

patients and staff were continuously adapted. All activities and areas of the Charity were risk assessed and appropriate procedures and infrastructure put in place to protect staff and patients. All staff in ‘at risk’ categories either worked from home or adaptations were made to ensure they were able to continue to work safely.

In March 2020, the emerging COVID-19 pandemic and UK-wide lockdown had a significant impact on the activities of the Charity requiring a quick response to manage the associated risks to health and the provision of services. The Charity established a COVID-19 action group to monitor and respond to developments.

Staff who could work from home were given support and equipment to do so. The fundraising team continued to regularly keep in touch with volunteers, offering support where they could. Some volunteers were able to continue making cards and working from home.

The trustees are pleased to report that the Charity responded well, protecting staff whilst doing everything it could to support the NHS both in the response to COVID-19 nationally and maintaining key diagnostic services for patients.

The safety of patients and staff remained the first priority. During the pandemic, as the understanding about the virus developed measures to protect our

“Friendly staff. Great Covid precautions.” Ashley Donlan, Cheltenham.

P.8 – Cobalt Health Annual Report 2020/21

Cobalt Health Annual Report 20 1920 /2 0 1 – P.9

preserve cash reserves. This created a safety margin that allowed the team to focus on operational matters. The partnership with NHS England, a significant increase in activity and generous legacy receipts were sufficient to give trustees confidence in Cobalt’s finances and to progress with strategic plans. The Charity has finished the year with improved cash reserves and confidence that it will be able to support operations over the next 12 months and beyond.

Supporting NHS England’s COVID-19 response: Cobalt worked closely with the NHS to support the Nightingale hospitals, helping to provide COVID-19 response scanning services across the country and continued to support research commitments. At the same time Cobalt moved quickly to ensure core services were maintained, particularly for oncology patients. More detail of how Cobalt helped support the NHS in its response to COVID-19 can be found under the Diagnosis and Research sections on pages 11-14.

“I am so happy that we could be there for vulnerable patients throughout the lockdowns, as a ‘green site’, with a designated Covid-safe route outside of the main hospital building, patients felt secure and able to continue with their imaging and treatment with us. It is also great for myself and the team here that we have been able to continue scanning throughout the pandemic”

Protecting the Charity’s financial resources:

In early 2020, extensive cash flow forecasting and stress testing of the finances was undertaken. To ensure that Cobalt could continue to operate effectively through the year the trustees approved loan and lease facilities of £1.3m against the purchase of a property and a new mobile CT scanner to

– Jan Kennedy, Research Superintendent, ITM Imaging Centre, Birmingham.

DIAGNOSIS

ACHIEVEMENTS AND THE FUTURE

Diagnosis: Aims for 2020/21 were:

The Charity aims to support NHS services to provide enhanced medical care to people who are sick and injured, using the most up-to-date imaging technology that would not otherwise have been available. The specific aims for 2020/21 included:

• To ensure a safe and secure environment for staff to provide patients with continuing high quality, caring, diagnostic services during the pandemic.

P.10 – Cobalt Health Annual Report 2020/21

Cobalt Health Annual Report 2020/21 – P.11

Diagnosis: Achievements and impact in 2020/21 were:

• An 18% increase in PET/CT referrals resulted in over 3,300 oncology patients from the Three Counties (Gloucestershire, Herefordshire and Worcestershire) having a PET/CT scan. This enabled early and accurate diagnoses and treatment monitoring, supporting personalised pathways for patients.

• The pandemic effectively paused the CT lung cancer screening services for much of the year. Cobalt did however continue to see patients who required following up with additional CT scans. The lung screening services commenced again at the end of the year, and Cobalt is now supporting seven lung cancer screening programmes working in partnership with the NHS.

“Staff were so very welcoming. From the minute l arrived to leaving all staff were so professional, fantastic communication and so warm. Thank you wonderful team.” Sue Holmes, Chipping Campden.

DIAGNOSIS THE FUTURE

(1) See glossary of terms page 59

P.12 – Cobalt Health Annual Report 2020/21

Cobalt Health Annual Report 20 Annual Report 2020/21 –1920 /2 0 1 – P.13

RESEARCH

ACHIEVEMENTS AND THE FUTURE

Cobalt aims to fund and participate in research into the advancement of the detection and treatment of cancer and other long term conditions such as dementia, with an emphasis on using diagnostic imaging.

During the year the Charity appointed an external chair for the Research Committee and undertook a review of the research strategy. The aim is now to support more internal research within the Charity but also to continue to support external research projects which are in line with the Charity’s core objectives.

Whilst the review was undertaken, research activities continued where they could and where they were not limited by the impact of COVID-19.

Research: Achievements and impact in 2020/21 were:

• Cobalt funded a Radiology Research Fellow in partnership with University Hospitals Bristol NHS Foundation Trust. Following the success of this appointment, Dr Ayah Nawwar became Cobalt’s first fully funded Research Fellow now based at Cobalt Imaging Centre in Cheltenham, supporting Prof Iain Lyburn, Cobalt’s Medical Director.

leading to an extension of this work. • Cobalt continued to support the funding of four research nurses, allowing a shift in focus to COVID-19 trials for a period of time. This funding enabled two local trusts to continue to recruit patients to clinical trials where many trusts had had to stop due to the impact COVID-19.

• The Charity is currently supporting over 50 research projects and clinical trials. In addition, Cobalt’s research team has had papers published in international journals; a number relating to the COVID-19 findings on PET/CT scans.

The Future

• To focus more resources on internal research activities, using the considerable experience of the team and scanning resources to undertake studies • To develop our research capability and infrastructure

• To continue to support the development of the use of artificial intelligence in diagnostic imaging, to assist radiologists with the best tools available to support their work

• To seek to raise the profile of the Charity’s research activities through publishing findings and attendance at conferences

EDUCATION ACHIEVEMENTS AND THE FUTURE

Education: Aims for 2020/21 were:

Education: Achievements and impact in 2020/21 were:

P.14 – Cobalt Health Annual Report 2020/21

Cobalt Health Annual Report 2020/21 – P.15

CLINICAL QUALITY ASSURANCE

EDUCATION THE FUTURE

Cobalt is committed to exceptional patient care whilst delivering a consistently excellent standard of imaging and reporting. We support all our clinical processes with quality management systems. We constantly strive to improve the service we provide through a comprehensive audit programme and we encourage all users of our services to complete a Patient Questionnaire or Referrer Survey, these are monitored daily and reviewed by our Clinical Audit Committee on a quarterly basis.

We were the first diagnostic imaging service to meet

the Quality Standard for Imaging (QSI) this is formal recognition that we have the organisational competence to deliver against key performance measures, based around our patients’ experience. The United Kingdom Accreditation Service (UKAS)

deliver and manage QSI on behalf of The College of Radiographers and The Royal College of Radiologists. We have been accredited with ISO 9001 continuously since 1994. This is an international standard which ensures a philosophy of continual improvement in all aspects of the business, with a focus on quality management.

We are also registered with the Care Quality Commission (CQC). The Care Quality Commission is the independent regulator of health and social care in England with the aim to make sure better care is provided for everyone.

Cobalt is currently working towards the ISO14001:2015 standard to assess the impact of our activity on the world around us and to provide sustainable solutions for the environment and the health and wellbeing of people.

P.16 – Cobalt Health Annual Report 2020/21

Cobalt Health Annual Report 20 1920 /2 0 1 – P.17

FUNDRAISING HIGHLIGHTS

TOTAL INCOME ACHIEVED DURING 2020/2021 WAS £1.0M COMPARED TO £1.5M THE PREVIOUS YEAR AND TARGET OF £795K.

FUNDRAISING REPORT

Photo: Cobalt volunteers at a thank you event at Manor by the Lake

Thank you for your support

The impact of the coronavirus pandemic resulted in the cancellation of over 20 planned fundraising events and talks. It temporarily halted our in-house volunteer programmes.

We recognise the important role donors have played in helping ensure that we were well placed to respond to the pandemic and able to continue to provide a full PET/CT, CT and MRI service for oncology and dementia patients. The investment in mobile CT scanners, supported by the Clive and Sylvia Richards Charity enabled us to provide urgent support to NHS England across the country, when and where it was needed.

In times of unexpected challenges, the continued support of individuals, partners, and organisations remains incredibly important to our fundraising efforts and the Charity.

FUNDRAISING GOALS

the efficacy of new and novel treatments. We also fund the salaries of four specialist research nurses for breast cancer and dementia and who help to identify patients who may be suitable and willing to participate in trials which could bring tangible benefits to patients now and in the future.

Cobalt undertakes fundraising to support the objectives of the Charity in particular to:

During the year, over £800k of our fundraising income came from people choosing to recognise the work of the Charity with gifts in their wills. In 2020 we provided support through our Make a Will Month campaign in April and participation in Remember a Charity Week in September, as well as partnering with the Co-op to provide a reduced fee will-writing service – helping more people plan for the future.

We are very grateful to past supporters and their loved ones who left a gift in their will and over a hundred more supporters who have kindly let us know their intention to support Cobalt in this way.

'We decided to leave a gift to Cobalt in our will because we thought "why wouldn't we?". If it goes towards saving even one person's life, it would be worth it.

Supporters, Lyn and Ian from Cheltenham, have included a gift in their will to Cobalt.

Gift in will to Cobalt enables purchase of new medical equipment

Last year Pamela Gay left a gift in her will to Cobalt. We are very touched that Pam remembered the work of the Charity in this way. Pam was diagnosed with Hodgkin’s lymphoma and bone cancer in the 1970’s. She was put on a pioneering chemotherapy trial at the ‘Cobalt Unit’ under our founder, Dr Fred Hanna. She went on to make a full recovery and led a very full and active life. After surviving cancer, Pam became involved in organising fundraising events and chose to leave a special gift in her will to Cobalt, in order to help more people survive cancer.

P.18 – Cobalt Health Annual Report 2020/21

Cobalt Health Annual Report 2020/21 – P.19

Over the course of seven days in December the campaign raised over £35,000 to introduce a pioneering onsite service at the Cobalt Imaging Centre to analyse blood prior to scanning. The new onsite service is already helping to reduce waiting times for patients, many of whom require urgent scans. Thank you to all our supporters and to our champion funder the Clive and Sylvia Richards Charity for match funding this campaign.

A new online fundraising campaign was launched in October 2020 to connect with supporters digitally. This dedicated supporters’ area provides access to virtual open gardens, monthly quizzes, Cobalt's Kitchen Table (recipes and demonstrations) and other interactive content to help raise the profile and funds for the Charity.

in aid of cobalt

CHARITY PARTNER IRESS

Charity partner, global financial software company, IRESS raised funds for a brand new laptop for our Teenage and Young Adult with Cancer Specialist Nurse, Megan Willsher, helping to ensure that she could work remotely and easily connect with her clinically vulnerable patients. This support was more important than ever during the pandemic, given the increased uncertainty and isolation many felt.

FUNDRAISING PROJECTS

Investing in Equipment and the Patient Experience

£67,742 was received for new equipment and improving our patients’ experience.

The Charity continues to help fund the role of the Teenage and Young Adult with Cancer Specialist Nurse at a cost of £29,000 each year, the majority of which was raised through fundraising activities

Pioneering Research

SUPER SUPPORTERS

Dave Burley raised £7,000 after cycling a double marathon, repeating the 52 mile run he last did back in 1984 for Cobalt, but this time on two wheels.

Marcia Gonsalves-Thompson raised over £500 running the 2020 Virtual London Marathon.

We would also like to give special thanks all those supporters whose efforts were affected by the pandemic restrictions including Philip Pinchin (who was preparing to climb Lhotse mountain), Matt Burke (Edinburgh Marathon), James Fenton (Race to the King double marathon) and Lily Wilcocks (cancelled auction event at Batsford Arboretum) to name but a few.

Photo: Marcia Gonsalves-Thompson

Fundraising continues to support the research programme. Research plays an important role in progressing medicine and ensuring we use existing treatments in the best possible way. Over £19k was allocated towards Cobalt’s research work.

Cobalt funds four specialist NHS research posts. In December 2019 Cobalt pledged £200,000 of funding to enable the appointment of a Senior Breast Cancer Research Nurse and a Research Support Officer. These appointments have already enabled the opening of breast screening trials in Gloucestershire, helping to improve access to new therapies and techniques for Gloucestershire breast cancer patients. £100,000 has been raised (as of March 2021). It is the intention after the initial funding period that these posts become self-funding for future years. £17,777 was raised towards salary costs of two Dementia Research Nurses.

P.20 – Cobalt Health Annual Report 2020/21

Cobalt Health Annual Report 2020/21 – P.21

GIVING WITH CONFIDENCE

Cobalt is a member of the Fundraising Regulator and complies with the standards laid out in the Code of Fundraising Practice. We agree to ensure our fundraising is legal, open, honest and respectful. The Charity adheres to the ‘Fundraising Promise’ which is published on the Cobalt website. The Charity has also signed up to the Fundraising Preference Service which enables individuals to opt out from receiving fundraising communications from us. Cobalt staff and volunteers carry out their activities in accordance with these guidelines.

No complaints have been received during the year. Any complaints received would be managed in accordance with our complaint handling procedures. Supporters are encouraged to provide feedback as this is an important source of information about the impact that the Charity’s work has on them and other members of the public.

We provide details of how to contact us, including our complaints process, on our website. The fundraising programme is reported on a regular basis to the Board of Trustees and the ongoing strategy approved by them, to make sure our fundraising activities are compliant with all relevant rules and regulations, remain ethical and deliver the highest possible standards.

The Charity is also a member of the Chartered Institute of Fundraising and the Institute of Legacy Management and adheres to their best practice guidelines. External agencies are not employed to carry out fundraising on behalf of the Charity. There is no door-to-door fundraising. In line with our Data Protection Policy the Charity does not sell and has not given data to any third parties without express permission. Access to the Cobalt database by staff and volunteers is strictly controlled. Cobalt treats its responsibility towards supporters in vulnerable circumstances with the utmost importance and our fundraisers are provided with guidance and support to help them respond appropriately to any individual they consider this might apply to.

Most people who donate to us want to know how their money is making a difference. We ask whether and how they would like us to keep in touch with them so we can update them on our work and how they’ve helped us. If they no longer wish to hear from us, we would always respect their decision.

We are trialling new technology to make donating to Cobalt easier than ever, including contactless payment system at Cobalt Imaging Centre so people are able to donate digitally.

FINANCIAL OVERVIEW

Total income for the year was £21.7m (2020 – £13.7m). Initially the Charity saw a fall in routine diagnostic imaging and research activities. Whilst these did largely recover through the year, all educational and fundraising events were postponed or cancelled. Cobalt was able to take advantage of the investment from previous two years in lung cancer screening to support NHS England as part of their COVID-19 response. During the year the number of CT scanners deployed was increased to seven through acquisition and hires. This contract generated £9.8m of income. The Charity did manage to maintain support for oncology patients with PET/CT and MRI. Cobalt provided a number of free scans to help research improved diagnostic pathways and the early diagnosis of dementia.

The cost of delivering services increased by £2.1m to £14.9m (2020 - £12.8m), including the associated costs of supporting NHS England as part of their COVID-19 response.

The surplus for the year was £6.8m (2020 - £0.9m). During the year £4.5m was invested in assets, including £3.2m of medical equipment and £1.1m for additional office space. A further £3.6m of capital expenditure had been committed to at the year end.

INCOME AND EXPENDITURE

The total income for 2020/21 was £21.7m (2020 - £13.7m).

MRI Services (£6.4m) (2020 - £7.9m)

This is income from the MRI scanners from the imaging centres in Cheltenham and Birmingham as well as the mobile scanners supporting hospitals across the UK. After the initial fall in income due to uncertainty at the start of the pandemic, numbers began to increase again throughout the rest of the financial year.

PET/CT and CT Services (£13.8m) (2020 - £4.1m)

PET/CT income is mainly from a contract with NHS England to stage (evaluate the extent of) cancer and assess for patient’s response to treatment. This year £9.8m was generated through COVID-19 response activities, supporting NHS England with mobile CT scanners where COVID-19 has had the most impact on NHS trusts across the country.

P.22 – Cobalt Health Annual Report 2020/21

Cobalt Health Annual Report 20 1920 /2 0 1 – P.23

Fundraising Income (£1.0m) (2020 - £1.5m) of which:

Other income (£0.4m) (2020 - £0.2m)

This income is from running the ‘MRI in Practice Course’ online, Furlough receipts, as well as rent receivable and any gains on fixed asset disposals.

Expenditure for 2020/21 totaled £14.9m (2020 - £12.8m).

MRI Services £6.8m (2020 - £7.8m)

Clinical staffing represents a high proportion of the total costs. The increased demand for CT required a number of the team to transfer to that service, resulting in increased expenditure on agency and bank staff.

PET/CT Services £7.4m (2020 - £3.9m)

Cobalt saw a record number of PET/CT patients in the year and by providing additional CT services in response to the COVID-19 pandemic. This led to a sharp increase in costs in order to support this service. Staffing makes up 34% of the costs. Other costs include maintenance of the scanners and expenses related to running a mobile fleet.

Raising Funds £0.3m (2020 - £0.4m)

Costs relate to the work of the Charity and volunteers to raise philanthropic funds for Cobalt.

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1%
2%
4%
30%
64%
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BREAKDOWN OF TOTAL INCOME (£21.7m)

PET/CT services Donations & legacies MRI services Fundraising activities

Other income

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2% 2% 1%
46% 50%
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BREAKDOWN OF TOTAL EXPENDITURE (£14.9m)

Nurses and research

Training and education MRI services

Raising funds PET/CT services

Charitable Funding, Nurses and Research £0.3m (2020 -

£0.6m)

This includes the funding of Cobalt’s Teenagers and Young Adults with Cancer Specialist Nurse, plus two breast cancer and two dementia research nurses.

Training and Education £0.08m (2020 - £0.1m)

Expenditure reduced during the year due to a shift in providing the ‘MRI in Practice’ courses online.

RETAINED FUNDS

Charity Funds £29.6m (2020 - £22.8m)

Restricted Funds £29k (2020 - £29k)

Funds are held at the year end to purchase equipment for a new MRI relocatable unit.

Designated Funds £5.4m (2020 - £2m)

The trustees have allocated funds to address recognised needs for the Charity, these are identified below.

Tangible assets for use £19.7m (2020 - £17m)

The fund represents the net capital value of the property and working assets of the Charity required for its operation.

General Fund and Reserves Policy £4.4m

(2020 - £3.7m)

To protect Cobalt’s activities, the Charity’s reserve policy is to maintain a minimum of 3 months and a maximum of 5 months working capital in reserves. At the year-end Cobalt held reserves sufficient for 3.6 months (2020 – 3.4 months).

The Reserves Policy was regularly reviewed and still deemed appropriate

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0%
15%
18%
67%
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CHARITY FUNDS (£29.6m)

Restricted funds Designated funds Tangible assets General fund for use

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Cobalt Health Annual Report 20 1920 /2 0 1 – P.25

Designated Funds £5.4m (2020 - £2m)

Capital Equipment £3.6m (2020 - £0.4m)

The funds are held for new equipment projects. The £3.6m carried forward has been retained to purchase a new CT mobile unit, relocatable units and PET/CT mobile, all of which are expected to be completed by March/April 2022.

Equipment Replacement Fund £1.1m (2020 - £1.0m)

This fund is reserved to replace and refresh the installed imaging equipment as part of the Equipment Replacement Plan. £1.1m has been set aside to replace an older mobile with a new mobile MRI unit for March/April 2022.

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20%
9%
4%
67%
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GRANT MAKING POLICIES

The trustees will continue to identify suitable projects which can be supported by the Charity. In addition to research activities as a non-commercial partner for the National Institute of Health Research support will be given to projects which:

DESIGNATED FUNDS (£5.4m)

Grants Fund £0.5m (2020 - £0.2m)

Grants are to support oncology and dementia services and research. The fund will be expended against ongoing research projects, fellowships and research grant awards that will be advertised from time to time on the Charity’s website. This fund is expected to support these projects over the next two years.

Property Fund £0.2m (2020 - £0.4m)

This fund is used to upgrade the facilities in the Charity’s properties. Funds carried forward are retained for upgrading the Cobalt Imaging Centre reception area and engineering plant within the next financial year.

Investments

The Charity considered it prudent to distribute its cash reserves amongst a number of UK banks. Cash has been held on deposit with differing maturity dates to maintain flexibility and attempt to earn some income in a low interest environment.

Capital equipment

Grants

Equipment Property fund replacement fund

RISK MANAGEMENT

The Charity has a risk management strategy. This involves:

Details of key risks are recorded in a risk register. The following have been identified as key risks:

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Risk Impact Mitigation
Multiple actions - see the COVID-19
Coronavirus – restrictions on trading response pages in this report.
and inability to staff activities due to Financial and operational losses will impact on Diversification and retention of reserves
income and reputation
illness and isolating to support a loss of income for a number
of months
The Charity has been diversifying its
Loss of major contract for diagnostic The loss of a contract may have a significant impact activities into other areas of clinical
imaging on income
imaging and means of providing services
Staff undertake annual IT Governance
Cyber security failure or denial of Potential loss of data, inability to operate, impact on training, including cyber risks. The Charity
service attack reputation has updated many critical systems and is
improving disaster recovery resources
Cobalt invests in maintenance and
service level agreements to repair or
Loss of a clinical scanner through Potential loss of income and key contracts, delay in compensate for lost time. Contingencies
breakdown or damage diagnosis for patients include hiring scanners. Growth offers
duplication of scanners and income
remains well diversified
Cobalt is employing a recruitment
Increased cost of working and failure to fulfil specialist, investing in a recruitment
Shortage of suitably qualified staff website and is expanding its training
contracts and grow programme to attract staff, including
working with universities.
----- End of picture text -----

P.26 – Cobalt Health Annual Report 2020/21

Cobalt Health Annual Report 20 1920 /2 0 1 – P.27

STRUCTURE, GOVERNANCE AND MANAGEMENT

for all clinical work, to ensure that safe, effective and patient-focused healthcare is provided

Cobalt Health (with registered Charity number 1090790) is a company limited by guarantee (with company number 04366596) (also known as ‘Cobalt’) and has no share capital. In the event of the company being wound up the liability of each member is limited to £1.

The Charity is governed by Articles of Association dated 23 May 2017. Details of trustees, officers and advisers are given on page 57 of these Financial Statements.

Appointment of new trustees

Day-to-day management of the Charity’s work within that general strategy is carried out by the Chief Executive, Mr Peter J Sharpe, and the senior management team.

There is a dormant subsidiary, The Cobalt Unit Appeal Fund Limited (company number 09016631), with an issued share capital of £1 held by the Charity.

Charity Governance Code

The trustees recognise the benefits to be gained from adopting the Charity Governance Code. The trustees self-audit the governance of the Charity against the 7 principles in the code on a cyclical basis.

This last year has required all meetings to be conducted remotely. The trustees have endeavoured to ensure that the standards expected in the code are maintained. One advantage of remote meetings is that it has enabled the Charity to hold more short meetings to respond to the developments and maintain a focus on strategic development. It has also enabled improved attendance and participation from stakeholders.

The main focus for development remains formalising the process of reviewing the performance of the trustees and the board as a whole. The trustees and advisers listed on page 57 form part of the Trustee’s Report

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the Charity’s constitution. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees (who are also directors of Cobalt Health for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

STATEMENT OF DISCLOSURE TO AUDITOR

Insofar as each of the trustees of the Charity at the date of approval of this report is aware there is no relevant audit information (information needed by the Charity’s auditor in connection with preparing the audit report) of which the Charity’s auditor is unaware. Each trustee has taken all of the steps that he/she should have taken as a trustee in order to make himself/herself aware of any relevant audit information and to establish that the Charity’s auditor is aware of that information.

AUDITOR

P.28 – Cobalt Health Annual Report 2020/21

Cobalt Health Annual Report 20 1920 /2 0 1 – P.29

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF COBALT HEALTH

Opinion

Conclusions relating to going concern

We have audited the financial statements of Cobalt Health (‘the charitable company’) for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

In our opinion the financial statements:

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006

In our opinion based on the work undertaken in the course of our audit

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 29, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are

responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org. uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and

P.30 – Cobalt Health Annual Report 2020/21

Cobalt Health Annual Report 20 1920 /2 0 1 – P.31

regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were UKAS and CQC Regulations.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the completeness and accuracy of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Finance Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, designing audit procedures over income, reviewing accounting estimates for biases, reviewing regulatory correspondence including that with the Charity Commission, UKAS and CQC and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing

standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Tara Westcott Senior Statutory Auditor For and on behalf of Crowe U.K. LLP 4th Floor, St James House, St James' Square, Cheltenham, GL50 3PR

8 October 2021

----- Start of picture text -----
“I can’t recommend you highly
enough, amazing staff, very
caring. Well done to you all, keep
up the amazing work you do.”
Barbara Bennett, Worcester.
----- End of picture text -----

P.32 – Cobalt Health Annual Report 2020/21

COBALT HEALTH

COBALT HEALTH

STATEMENT OF FINANCIAL ACTIVITIES

(including an Income and Expenditure account) FOR THE YEAR ENDED 31 MARCH 2021

Note Unrestricted
Funds		 Restricted
Funds		 2021
Total Funds		 2020
Total Funds
INCOME FROM: £ £ £ £
Donations and legacies
2		 875,828 53,777 929,605 1,086,851
Charitable activities
Clinical services
3		 20,262,609 - 20,262,609 11,984,962
Fundraising activities
4		 27,348 57,265 84,613 427,643
Investment income
5		 10,452 - 10,452 41,246
Other income
6		 387,290 - 387,290 209,235
TOTAL INCOME 21,563,527 111,042 21,674,569 13,749,937
EXPENDITURE ON:
Fundraising costs
9		 281,360 - 281,360 363,974
Charitable activities
9		 14,518,369 72,306 14,590,675 12,451,191
TOTAL EXPENDITURE
9		 14,799,729 72,306 14,872,035 12,815,165
NET INCOME 6,763,798 38,736 6,802,534 934,772
TRANSFERS BETWEEN FUNDS 38,912 (38,912) - -
NET MOVEMENT IN FUNDS 6,802,710 ( 176 ) 6,802,534 934,772
RECONCILIATION OF FUNDS

TOTAL FUNDS BROUGHT FORWARD		 22,754,917 29,006 22,783,923 21,849,151
TOTAL FUNDS CARRIED FORWARD
19		 29,557,627 28,830 29,586,457 22,783,923

BALANCE SHEET

AS AT 31 MARCH 2021 Company number 04366596

Note 2021
£
189,491
19,763,130
150,001
20,102,622
3,790,125
3,032,265
6,146,392
12,968,782
(2,334,869)
10,633,913
(1,150,078)
29,586,457
19,763,130
5,412,530
4,381,967
29,557,627
28,830
29,586,457		 2020
£
FIXED ASSETS
Intangible assets 11 144,003
Tangible fixed assets 12 17,039,593
Investments 13 150,001
TOTAL FIXED ASSETS 17,333,597
CURRENT ASSETS
Debtors 14 2,466,978
Investments 13 2,050,833
Cash at bank and in hand 3,608,590
TOTAL CURRENT ASSETS 8,126,401
LIABILITIES
Creditors - amounts falling 15 (2,676,075)
due within one year
NET CURRENT ASSETS 5,450,326
Creditors - amounts falling
due greater than one year 15 -
TOTAL NET ASSETS 22,783,923
FUNDS OF THE CHARITY
Unrestricted Funds:
Tangible fixed assets held for Charity's use 16 17,039,593
Designated funds 17 2,043,247
General fund 16 3,672,077
TOTAL UNRESTRICTED FUNDS 22,754,917
Restricted funds 18 29,006
TOTAL CHARITY FUNDS 19 22,783,923
Approved by the Trustees on 16 September 2021

Approved by the Trustees on 16 September 2021 and signed by

NEIL HOLBROOK Chairman

P.34 – Cobalt Health Annual Report 2020/21

Cobalt Health Annual Report 2020/21 – P.35

The notes on pages 37 - 56 form part of these financial statements.

The notes on pages 37 - 56 form part of these financial statements.

COBALT HEALTH

COBALT HEALTH

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2021

Note
Cash flows from operating activities		 2021
£		 2020
£
Net cash provided by operating activities
24		 6,414,394 3,740,965
Cash flows from investing activities
Interest receivable and rents from investments 109,857 147,534
Purchase of intangible assets
11
Proceeds from the sale of fixed assets		 (92,500)
178,500		 (122,247)
32,461
Investment Property
13		 - (150,000)
Purchase of fixed assets
12		 (4,420,099) (3,689,696)
Net cash (used in) investing activities (4,224,242) (3,781,948)
Cash flows from financing activities
Repayments of borrowing (79,888) -
Cash inflows from new borrowing 1,408,970 -
Net cash provided by financing activities 1,329,082 -
Change in cash and cash equivalents in the year 3,519,234
(40,983)
Cash and cash equivalents at the beginning of the year 5,659,423 5,700,406
Cash and cash equivalents at the end of the year
25		 9,178,657 5,659,423

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

NOTE 1. ACCOUNTING POLICIES

Cobalt Health was incorporated in England and Wales as a company limited by guarantee (registered no. 04366596) and has no share capital. The liability in respect of the guarantee is limited to an amount not exceeding £1 per member of the company. Cobalt Health is registered as a Charity with the Charity Commission England and Wales (registered no. 1090790).

a) Basis of accounting

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Charities SORP and UK Generally Accepted Accounting Practice.

The financial statements have been prepared under historical cost convention. Cobalt Health meets the definition of a public benefit entity under FRS 102.

and on deposit. Extensive modelling was undertaken throughout 2020 on the potential and evolving impact of the Corona Virus pandemic on the Charity. As a result, the Trustees sought to protect current cash reserves by borrowing £1.4m against planned purchases of a new mobile CT scanner and an adjacent property in June and July 2020.

In April 2020, Cobalt was contracted to support the NHS England’s Covid-19 response, using four mobile CT scanners and support units. The contract has been extended to September 2021. This contract, together with the ongoing activities and the cash balances in hand are sufficient to give Trustees confidence beyond the next 12 months.

Revised budget forecasts and three year projections expect that more normal levels of diagnostic activities will resume over a period of time. Cobalt expects to make a surplus in 2021/22.

The Charity is able to plan expansion to activities over the next two to three years and therefore the Trustees are able to adopt a going concern basis for the preparation of these financial statements.

c) Income

Assets and liabilities are initially recognised at historical cost or transaction value, unless otherwise stated in the relevant accounting policy note.

Under Section 405 of the Companies Act 2006, consolidated accounts have not been prepared as the inclusion of the dormant subsidiary is not material for the purpose of giving a true and fair view. Therefore these financial statements present information on the parent entity as an individual undertaking only.

Income, including that from clinical services, is recognised in the period to which it relates, once the Charity has entitlement to the resources and once the Trustees have probability that the resources will be received and when the monetary value can be measured with reliability.

Income from fundraising events is shown gross, with the associated expenditure shown in Fundraising costs. Where the Charity benefits from work carried out by volunteers without charge, no value is placed on this work for accounting purposes.

b) Preparation of the accounts on a going concern basis

At the year end the Charity had £9.18m in the bank

P.36 – Cobalt Health Annual Report 2020/21

Cobalt Health Annual Report 2020/21 – P.37

The notes on pages 37 - 56 form part of these financial statements.

COBALT HEALTH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

Donations including donated goods are recognised as income when they have been received and any conditions associated with the donation have been met.

Legacy income is recognised when there is a grant of probate; the executors have established that there are sufficient funds to distribute funds from the estate; the legacy can be valued with reasonable accuracy and any conditions attached to the legacy have been met or are within the control of the Charity. An adjustment is made to include legacy receipts up to two months of the year end which relate to probate notifications for the financial year or earlier.

Interest and investment income, including rental income, is included when receivable and the amount can be measured reliably. Rental income due to the Charity, applicable to operating leases, where substantially all of the benefits and risks of ownership of the asset remain with the Charity is recognised in the Statement of Financial Activities over the lease term.

Government grants receivable are credited to income as these become receivable, except in situations where they related to performance, in which case these are accrued as the Charity earns the right through performance.

d) Expenditure

Expenditure is included in the Statement of Financial Activities on an accruals basis, inclusive of any VAT which cannot be recovered, as soon as there is a legal or constructive obligation committing the Charity to the expenditure.

Expenditure on fundraising are those costs incurred in providing services for which the Charity received a direct income and those incurred in fundraising activity.

Expenditure on charitable activities represents the cost of supporting the Charity’s objectives and as laid out in its memorandum and articles of association.

Governance costs are those incurred in the governance of the Charity and its assets and are primarily associated with constitutional and statutory compliance.

Support costs include central functions, principally connected with buildings and administration, which are indirectly incurred in support of the generation of funds and of charitable expenditure, and which are allocated to those headings on an appropriate apportionment.

Employees are entitled to join the Charity’s money purchase pension scheme. The associated cost is allocated across the Charity’s activities and funds depending on the role of the member of staff.

e) Redundancy payments

It is the Trustees' policy to minimise the impact of organisational change. Redundancy payments only occur when absolutely necessary and are accounted for on an accruals basis when the commitment to terminate a post on the grounds of redundancy has been made.

f) Intangible assets

The intangible assets of the Charity comprise operational software packages. Once it has been tested and commissioned the software is amortised over the expected useful life of 4 years. Amortisation is charged to ‘Charitable activities’ in the Statement of Financial Activities.

COBALT HEALTH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

g) Tangible fixed assets

Individual fixed assets costing £5,000 or more, and others of a smaller individual value but forming part of a capital expenditure programme, are capitalised at purchase cost.

Depreciation is provided on all tangible fixed assets in use, at rates and bases calculated to write off the cost less estimated residual value of each asset over its expected useful life. No depreciation is charged on land, and the land element is based on 25% of the total cost of the properties.

Freehold buildings - 2% of cost, 10-20% for refurbishment

Medical equipment - 10, 12½ & 20% of cost Fixtures, fittings and computer equipment - 25% of cost

Motor vehicles - 20% of cost

h) Fixed asset investment

The Charity was bequeathed a 50% share in a freehold property as part of a legacy in 2020. The property is currently generating rental income for the Charity and as such is classified as an investment property. In accordance with FRS 102 this is included on the balance sheet as a 50% share of the estimated market value at 31 March 2020. No depreciation is charged on the property and it is reviewed annually for impairment.

i) Impairment

The carrying amounts of assets are reviewed at each balance sheet date, to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated to determine the amount of impairment loss. Any loss is written off to the Statement of Financial Activities.

j) Debtors

Trade debtors, other debtors and accrued income are recognised at the settlement amount due after any trade discount. Prepayments are valued at the amount prepaid net of any trade discounts due.

k) Investments

Investments represents cash held on deposit with differing maturity dates to maintain flexibility and to attempt to earn some income in a low interest environment.

l) Creditors

Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

m) Hire purchase

Assets obtained under hire purchase contracts are capitalised as tangible fixed assets. Assets acquired by hire purchase are depreciated over their useful lives.

Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Charity. Obligations under such agreements are included in creditors, net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of Activities so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

P.38 – Cobalt Health Annual Report 2020/21

Cobalt Health Annual Report 2020/21 – P.39

COBALT HEALTH

NOTES TO THE FINANCIAL STATEMENTS

COBALT HEALTH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

FOR THE YEAR ENDED 31 MARCH 2021

n) Bank loan

Bank loans are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

o) Financial instruments

Cobalt Health only has financial assets and financial liabilities of a kind that qualify as basic financial instruments, cash at bank, cash held on deposit, debtors and creditors (see notes 14 and 15). Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

p) Significant estimates and judgements

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

Useful economic lives of intangible and tangible assets:

The annual amortisation and depreciation charges for the intangible and tangible assets are sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See notes 11 and 12 for the carrying amount of the intangible and tangible assets and notes 1(f) and 1(g) for the useful lives for each class of asset.

accrued legacy income is recognised at times, in advance of receiving the cash; see accounting policy 1(c) for further details.

q) Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions.

r) Funds

Restricted funds comprise income funds subject to specific conditions arising from the donor’s wishes or the terms of a particular fundraising initiative. Unrestricted funds are the working capital of the Charity, which is expendable at the discretion of the Trustees.

Designated funds are unrestricted funds which have been designated for specific purposes by the Trustees.

s) Taxation

As a recognised Charity, the company is exempt from Corporation Tax so far as it relates to its charitable objects. It is not exempt from VAT, and irrecoverable VAT is included in the cost of those items to which it relates.

t) Operating leases

Rentals under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

u) Registered and Principal Office

Cobalt Health, Linton House Clinic, Thirlestaine Road, Cheltenham, Gloucestershire, GL53 7AS.

NOTE 2. DONATIONS AND LEGACIES
2021 2020
£ £
Donations 114,748 127,319
In Memoriam 3,516 12,051
Legacies 811,341 947,481
929,605 1,086,851

NOTE 3. CHARITABLE ACTIVITIES

2021
£
6,449,990
13,812,619
20,262,609
Clinical services
MRI Services
PET/CT Services		 2020
£
7,841,423
4,143,539
11,984,962

NOTE 4. INCOME FROM FUNDRAISING ACTIVITIES

Events
Card Sales
Grant income
2021
£
18,798
8,550
57,265
84,613		 Events
Card Sales
Grant income
2021
£
18,798
8,550
57,265
84,613		 2020
£
75,816
24,978
326,849
84,613 427,643

Legacies:

Management judgement is applied over the valuation of legacy income where cash is not yet received and evidence of entitlement exists and Cobalt Health is able to measure reliably. As a result,

P.40 – Cobalt Health Annual Report 2020/21

Cobalt Health Annual Report 2020/21 – P.41

COBALT HEALTH

COBALT HEALTH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

NOTE 7. ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND

EXPENSES, AND THE COSTS OF KEY MANAGEMENT PERSONNEL

NOTE 5. INVESTMENT INCOME

2021
£		 2021
£		 2020
£
Interest receivable
10,452		 41,246

NOTE 6. OTHER INCOME

£ £ £
Rent receivable
99,405
Gain on disposal of fixed assets
166,500
Delegate Fees, room hire, other income
38,349
Government grants - furlough receipts
83,036		 106,288
32,461
70,486
-
387,290
209,235
2021 2020 2020
£ £ £
Wages and salaries
3,516,191		 3,110,041 3,110,041

Social security costs
343,804		 303,652 303,652
Pension contributions
481,444

 444,112
 444,112
11926
Other employee Benefits 13,387 11,926 ,
4,354,826 3,869,731 3,869,731
The number of employees whose emoluments for the year fell within each band from £60,000 upwards was:

2021
£60,000 - £70,000
1
£70,000 - £80,000
3		 2020
2
2		 2020
2
2
£80,000 - £90,000
£140,000 - £150,000
1
2		 2
1		 2
1
In the year contributions of £33,529 (2020 - £32,726) were made to 1 (2020 – 1) higher paid employees’
personal defined contribution schemes.
The total emoluments (including pension costs and employer's national insurance contributions) of the 8

members of the Senior management Team who have day-to-day influence on the activities of the Charity

was £723,600 (2020, 8, £718,931). The 8 are the Chief Executive, Finance Director, Fundraising Director,

the HR and Communications Managers, Quality Manager and 2 Clinical Managers.
During the year, redundancy payments amounting to £16,037, were paid to members of

staff (2020, £nil).
The average monthly headcount of employees, analysed by function, was:
2021 2020 2020
MRI Services
60		 59 59


PET/CT Services
32		 19 19


Fundraising
5		 5 5
Administration and Management
17		 16 16

Buildings		 3 3 3
117 102 102
The average full-time equivalent number of staff for the year was 86_(2020 - 89_). No Trustees

received remuneration during the year (2020 - Nil). No Trustees were reimbursed travel expenses during

the year (2020 - Nil).

P.42 – Cobalt Health Annual Report 2020/21

Cobalt Health Annual Report 2020/21 – P.43

COBALT HEALTH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

NOTE 8. NET INCOME FOR THE FINANCIAL YEAR
20
Net income is stated after charging/(crediting):
2021
g):		 2020
Auditor's remuneration:

£
 £
Audit
10,3		 10,300 10,000
Tax advisory
7		 700 1,750

Other services
5		 500 -
Depreciation
1,684,5		 1,684,561 1,261,423
Amortisation
47,0		 47,012 45,305
Surplus on disposal of fixed assets
(166,5		 (166,500) (32,461)


Operating lease costs
11,5		 11,544 11,544


Pension contributions
481,4		 481,444 444,112

NOTE 9. ANALYSIS OF EXPENDITURE

Raising funds:
Costs of fundraising
and similar activities
Charitable activities:
MRI Services
PET/CT and CT Services
Charitable Funding
Training and Education		 Direct
Costs
£
178,837
178,837
5,370,066
5,542,461
233,128
67,730
11,213,385
11,392,222		 Costs
£
90,241
90,241
590,230
1,059,056
-
8,713
1,657,999
1,748,240		 Amortisation
and
Depreciation
£
12,282
12,282
864,396
768,871
83,931
2,093
1,719,291
1,731,573*		 Total
2021
£
281,360
281,360
6,824,692
7,370,388
317,059
78,536
14,590,675
14,872,035
12,815,165		 Total
2020
£
363,974
363,974
7,769,648
3,912,720
662,097
106,726
12,451,191
12,815,165
TOTAL 2020 9,947,531 1,560,905 1,306,729

COBALT HEALTH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

NOTE 10. SUPPORT COSTS

Admin Building Governance Building Governance Total Total
Costs Costs Costs 2021 2020
£ £ £ £ £
MRI Services 429,189 156,670 4,371 590,230 965,432
PET/CT and CT Services 886,069 163,963 9,024 1,059,056 432,733
Fundraising 69,224 20,312 705 90,241 143,007
Training and Education - 8,713 - 8,713 19,733
TOTAL 2021 1,384,482 349,658 14,100 1,748,240 1,560,905
TOTAL 2020 1,245,029 301,776 14,100 1,560,905
Support costs have been allocated on the basis of floor space occupied in respect of building costs and
proportionate time spent on administrative matters in respect of administration costs. Governance costs
nclude the cost of the audit and the direct costs of supporting the Trustees.

NOTE 11. INTANGIBLE FIXED ASSETS

Software
Cost £
At 1 April 2020 254,076
Additions 92,500
Disposals -
At 31 March 2021 346,576
Amortisation
At 1 April 2020 110,073

Charge for year		 47,012

Disposals		 -
At 31 March 2021 157,085
Net Book Value

At 31 March 2021		 189,491
At 31 March 2020 144,003

P.44 – Cobalt Health Annual Report 2020/21

Cobalt Health Annual Report 2020/21 – P.45

COBALT HEALTH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

NOTE 12. FIXED ASSETS

Freehold Freehold Medical IT / Fixtures Medical IT / Fixtures Motor
Land & Buildings Equipment & Fittings Vehicles Total
£ £ £ £ £
Cost
At 1 April 2020 10,302,327 17,598,630 578,770 41,714 28,521,441

Additions		 1,071,232 3,193,666 114,775 40,426 4,420,099
Disposals - (2,454,052) (67,512) - (2,521,564)
At 31 March 2021 11,373,559 18,338,244 626,033 82,140 30,419,976
Depreciation
At 1 April 2020 2,468,628 8,636,005 340,063 37,152 11,481,848

Charge for year		 167,863 1,415,576 94,743 6,379 1,684,561

Eliminated on Disposals		 - (2,454,051) (55,512) - (2,509,563)
At 31 March 2021 2,636,491 7,597,530 379,294 43,531 10,656,846
Net Book Value
At 31 March 2021 8,737,068 10,740,714 246,739 38,609 19,763,130
At 31 March 2020 7,833,699 8,962,625 238,707 4,562 17,039,593
The net book value of assets held under hire purchase agreements is £667,613 (2020 - £Nil).
A bank loan was taken out in the year and is secured by way of a 1st legal charge over the freehold of Linton Cottage.
The aggregate amount secured is £707k.

COBALT HEALTH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

NOTE 13. INVESTMENTS
2021 2020 2020
£ £ £
Fixed Assets
Investment in subsidiary 1 1 1
Investment property 150,000 150,000 150,000
Current Assets
Current asset investment - notice deposits
3,032,265		 2,050,833 2,050,833

The share capital of Cobalt Unit Appeal Fund Ltd consists of one ordinary share of £1 nominal value and is wholly owned by Cobalt Health. The subsidiary is dormant and did not trade during the year. Cobalt Unit Appeal fund Ltd was incorporated in England and Wales (registered no. 09016631) and registered at Linton House Clinic, Thirlestaine Road, Cheltenham, Gloucestershire, GL53 7AS.

The Charity owns a 50% share in a freehold investment property. In accordance with FRS 102 this is included on the balance sheet as a 50% share of the estimated market value at the reporting date.

The Charity has invested £3.0m in a short term deposit with Nationwide.

NOTE 14. DEBTORS

2021 2021 2020
£ £
Clinical Service fees due
3,275,487		 1,597,795
Accrued income
219,347		 405,995
Prepayments
294,454		 457,858
Other Debtors
837		 5,330
3,790,125 2,466,978

P.46 – Cobalt Health Annual Report 2020/21

Cobalt Health Annual Report 2020/21 – P.47

COBALT HEALTH

COBALT HEALTH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

NOTE 15. CREDITORS: Amounts falling due within one year

2020
£
1,988,067
-
519,698
39,224
-
85,023
36,146
7,917
2,676,075
Rent received
in advance		 Total
£
7,917		 £
At 1 April 2020 7,917
Released in the year (92,275) (92,275)
Deferred in the year 84,358
-
in the month to which it relates.
2021
£
306,863
355,713
487,502
1,150,078		 84,358
At 31 March 2021 -
2020
£
-
-
-
-
Rent received in advance is recognised as income
CREDITORS: Amounts falling after one year:
Bank Loan 2-5 years
Bank Loan > 5 years
HP liability
A bank loan was taken out in the year and is secured by way of a 1st legal charge over the freehold of Lin
Interest is charged at 1.75% p.a. over Base Rate. The total term of the loan is 72 months.

A bank loan was taken out in the year and is secured by way of a 1st legal charge over the freehold of Linton Cottage. Interest is charged at 1.75% p.a. over Base Rate. The total term of the loan is 72 months.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

NOTE 16. UNRESTRICTED FUNDS - 2021

Movement in Funds Movement in Funds Movement in Funds
Balance at Income Expenditure Transfers Balance at
1 April 2020 31 March 2021

£		 £ £ £ £
General Fund 3,672,077 21,563,527 (15,461,467) (5,392,170) 4,381,967
Tangible fixed assets held

for the Charity's use		 17,039,593 - 825,002 1,898,535 19,763,130
Total 20,711,670 21,563,527 (14,636,465) (3,493,635) 24,145,097
Unrestricted Funds includes a General Fund balance of £4,381,967. This constitutes 3.6 months’ working capi

requirement. Transfers of £3,493,635 represent fixed asset additions and disposals in the year, as well as

transfers to and from the designated funds, s
ee note 17.
UNRESTRICTED FUNDS - 2020
Movement in Funds
Balance at
Income
Expenditure
Transfers		 Balance at

1 April 2019
31 March 2020

£		 £ £ £
£
General Fund 3364256 13364665 (12294191) (762653) 3672077
,, ,, ,, , ,,
Tangible fixed assets held

for the Charity's use		 14,611,320 - (81,380) 2,509,653 17,039,593
Total 17,975,576 13,364,665 (12,375,571) 1,747,000 20,711,670

Unrestricted Funds includes a General Fund balance of £4,381,967. This constitutes 3.6 months’ working capital requirement. Transfers of £3,493,635 represent fixed asset additions and disposals in the year, as well as transfers to and from the designated funds, see note 17.

P.48 – Cobalt Health Annual Report 2020/21

Cobalt Health Annual Report 2020/21 – P.49

COBALT HEALTH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

NOTE 17. DESIGNATED FUNDS - 2021

Balance at 1
April 2020		 Expenditure Transfers Funding of
Fixed Assets		 Balance at
31 March
2021
£ £ £ £ £
Capital Equipment Fund 442,000 - 3,622,530 (442,000) 3,622,530

Equipment Replacement Fund		 1,000,000 - 100,000 - 1,100,000

Grants Fund		 230,247 (163,264) 403,017 - 470,000
Property Fund 371,000 - 194,285 (345,285) 220,000
Total 2,043,247 (163,264) 4,319,832 (787,285) 5,412,530
At the balance sheet date the purposes of the various sub-funds within Designated Funds are as follows:
Capital Equipment Fund

This fund is reserved for new equipment projects. The £442k brought forward has been used to purchase additional support units for CT Lung Screening. The £3.6m carried forward has been retained to purchase a new CT mobile unit, relocatable units and PET mobile, which are expected to take place by March/April 2022.

COBALT HEALTH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

NOTE 18. RESTRICTED FUNDS - 2021

Balance at Balance at Income
Expenditure
Funding of		 Income
Expenditure
Funding of		 Income
Expenditure
Funding of		 Balance at
1 April 2020 Fixed Assets 31 March
2021
£ £ £ £ £
Breast Cancer Research Nurses Fund 23,905 5,300 (29,205) - -
TYA Nurse Fund 5,101 16,947 (22,048) - -
Cancer General Fund - 688 (688) - -
Dementia Research Nurses Fund - 19,777 (19,777) - -
Equipment Fund - 67,742 - (38,912) 28,830
Research Fund - 588 (588) - -
TOTAL 29,006 111,042 (72,306) (38,912) 28,830
Restricted funds held totalled £28830 at the balance sheet date. In the year restricted funds were used f
,
specifically allocated initiatives and equipment purchases.
Breast Cancer Research Nurses Fund

Restricted funds held totalled £28,830 at the balance sheet date. In the year restricted funds were used for specifically allocated initiatives and equipment purchases.

To fund breast cancer research nurses. In addition 50% of card sales (£4.2k) has also been attributed to this project in the year.

Equipment Replacement Fund

This fund is reserved to replace and refresh the installed imaging equipment as part of the Equipment Replacement Plan. £1.1m has been set aside to replace Cobalt 9 with a new mobile MRI unit, which is expected to take place by March/April 2022.

Grants Fund

Grants are to support oncology and dementia services and research. This includes, but is not limited to, projects with the 2gether Trust, and fellowships. £163k of this fund has been spent during the year. Going forward, the fund will be expended against ongoing research projects, fellowships and research grant awards that will be advertised from time to time on the Charity’s website. This fund is expected to support these projects over the next two years.

Property Fund

This fund is used to upgrade the facilities in the Charity’s properties. Funds were expended in the year on the purchase and conversion of Linton Cottage. Funds carried forward are retained for upgrading the Cheltenham Imaging Centre reception area, and buildings plant within the next financial year.

TYA Nurse Fund

The fund is used to support the work of a local Teenage and Young Adult specialist cancer nurse post. Cobalt has undertaken to fund 50% of this post until 2024 when it will be reviewed.

Cancer General Fund

The fund is used to support the Charity’s work providing free scans for oncology patients.

Dementia Research Nurses Fund

The fund is used to help fund research into Dementia. Cobalt has been aiding research into the benefit of scanning patients to improve early diagnosis. In addition 50% of card sales (£4.2k) has also been attributed to this project in the year.

Equipment Fund

The fund was used to support the purchase of a new mobile CT scanner used to support the Covid-19 response.

Research Fund

The fund was used to support Cobalt's research activities in the year.

DESIGNATED FUNDS - 2020

Balance at 1
April 2019		 Expenditure Transfers Funding of
Fixed Assets		 Balance at
31 March
2020
£ £ £ £ £
Capital Equipment Fund 1,000,000 - 834,435 (1,392,435) 442,000

Equipment Replacement Fund		 2,240,000 - - (1,240,000) 1,000,000

Grants Fund		 318,360 (88,113) - - 230,247
Property Fund 95,000 - 276,000 - 371,000
Total 3,653,360 (88,113) 1,110,435 (2,632,435) 2,043,247

RESTRICTED FUNDS - 2020

Balance at Balance at Income
Expenditure		 Income
Expenditure		 Funding of Balance at
31 March
2020
£
1 April 2019 Fixed Assets
£ £ £ £
Breast Cancer Equipment Fund 212,184 15,000 (227,184) - -

Breast Cancer Research Nurses Fund		 - 69,272 (45,367) - 23,905
TYA Nurse Fund 6,103 28,397 (29,399) - 5,101
Cancer Education Fund - 120 (120) - -
Cancer General Fund - 4,665 (4,665) - -
Dementia Research Nurses Fund 1,928 37,800 (39,728) - -
Equipment Fund - 229,993 (4,993) (225,000) -
Research Fund - 25 (25) - -
TOTAL 220,215 385,272 (351,481) (225,000) 29,006

P.50 – Cobalt Health Annual Report 2020/21

Cobalt Health Annual Report 2020/21 – P.51

COBALT HEALTH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

NOTE 19. ANALYSIS OF NET ASSETS - 2021

Creditors due 4,381,967
19,763,130
Total
Intangible Fixed Net Current greater than
Assets Assets Assets one year
£ £ £ £
Unrestricted Funds
General Fund 189,491 150,001 5,192,553 (1,150,078)
Tangible Fixed Assets held for Charity use - 19,763,130 - -
24,145,097
Total Unrestricted Funds 189,491 19,913,131 5,192,553 (1,150,078)
3,622,530
470,000
1,100,000
220,000
Designated Funds
Capital Equipment Fund - - 3,622,530 -
Grants Fund - - 470,000 -
Equipment Replacement Fund - - 1,100,000 -
Property Fund - - 220,000 -
5,412,530
Total Designated Funds - - 5,412,530 -
28,830
Restricted Funds - - 28,830 -
29,586,457
Total Funds 189,491 19,913,131 10,633,913 (1,150,078)
ANALYSIS OF NET ASSETS - 2020
Intangible Fixed Net Current Total
Assets Assets Assets
£ £ £ £
Unrestricted Funds
General Fund 144,003 150,001 3,378,073 3,672,077
Tangible Fixed Assets held for Charity use - 17,039,593 - 17,039,593
Total Unrestricted Funds 144,003 17,189,594 3,378,073 20,711,670
Designated Funds
Capital Equipment Fund - - 442,000 442,000
Grants Fund - - 230,247 230,247
Equipment Replacement Fund - - 1,000,000 1,000,000
Property Fund - - 371,000 371,000
Total Designated Funds - - 2,043,247 2,043,247
Restricted Funds - - 29,006 29,006
Total Funds 144,003 17,189,594 5,450,326 22,783,923

COBALT HEALTH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

NOTE 20. CAPITAL COMMITMENTS

NOTE 20. CAPITAL COMMITMENTS NOTE 20. CAPITAL COMMITMENTS NOTE 20. CAPITAL COMMITMENTS
2021
2020
£
£
Future capital expenditure not otherwise included in the financial

statements at the balance sheet date:
3,624,249
Expenditure contracted for 1,083,052
Expenditure approved, but not contracted for - 1,030,000

NOTE 21. RELATED PARTY TRANSACTIONS

Members of the Board of Trustees are not entitled to, and did not receive, any remuneration during the year in relation to their services as Trustees.

There have been no transactions with the Charity’s wholly-owned subsidiary company The Cobalt Unit Appeal Fund Ltd.

There have been no related party transactions in the 2021 or 2020 financial year.

P.52 – Cobalt Health Annual Report 2020/21

Cobalt Health Annual Report 2020/21 – P.53

COBALT HEALTH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

NOTE 22. LIABILITIES UNDER OPERATING LEASES

At 31 March 2021, the Charity had total commitments under non-cancellable operating leases in respect of equipment as follows:

2021
£
Within one year
11,544
Between one and five years
9,876		 2021
£
Within one year
11,544
Between one and five years
9,876
2020
£
11,544
21,420
Total 21,420 32,964

NOTE 23. ASSETS RECEIVABLE UNDER OPERATING LEASES

At 31 March 2021, the Charity had assets receivable under non-cancellable operating leases in respect of rental income of Cobalt House as follows:

2021
£
Within one year
98,067		 2021
£
Within one year
98,067		 2020
£
96,800

Between one and five years
239,601		 337,667
Total 337,668
434,467

COBALT HEALTH

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

NOTE 24. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES

6,802,534
1,731,573
(109,857)
(166,500)
(1,323,147)
(520,209)
6,414,394
2021
£		 934,772
1,306,728
(147,534)
(32,461)
(104,124)
1,783,584
2020
£
Net income for the reporting period
(as per the statement of financial activities)
Adjustments for:
Depreciation and amortisation charges
Dividends, interest and rent from investments
(Surplus) on sale of fixed assets
(Increase) in debtors
(Decrease)/ Increase in creditors
3,740,965
Net cash provided by operating activities

NOTE 25. ANALYSIS OF CHANGES IN NET CASH/DEBT

2020
£		 Cashflows
£		 2021
£
Cash at bank and in hand 3,608,590 2,537,802 6,146,392
2,050,833
5,659,423
-
-
-		 981,432
3,519,234
(44,751)
(662,576)
(621,755)
Current asset investments:
Notice deposits 3,032,265
Total 9,178,657
Loans falling due within one year (44,751)
Loans falling due after more
than one year (662,576)
Hire purchase obligations (621,755)
Total 5,659,423 2,190,152 7,849,575

P.54 – Cobalt Health Annual Report 2020/21

Cobalt Health Annual Report 2020/21 – P.55

COBALT HEALTH

TRUSTEES AND ADVISERS

NOTES TO THE FINANCIAL STATEMENTS

PATRON

Clive Richards CBE KSG DL (until April 2021)

FOR THE YEAR ENDED 31 MARCH 2021

NOTE 26. 2020 STATEMENT OF FINANCIAL ACTIVITIES

Note
INCOME FROM:
Donations and legacies
2
Charitable activities:
Clinical services
3
Fundraising activities
4
Investment income
5
Other income
6
TOTAL INCOME
EXPENDITURE ON:
Fundraising costs
9
Charitable activities
9
TOTAL EXPENDITURE
9
NET INCOME
TRANSFERS BETWEEN FUNDS
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
TOTAL FUNDS BROUGHT FORWARD
TOTAL FUNDS CARRIED FORWARD
19		 Unrestricted
Funds		 Restricted
Funds		 2020
Total Funds
£ £ £
1,028,428 58,423 1,086,851
11,984,962 - 11,984,962
100,794 326,849 427,643
41,246 - 41,246
209,235 - 209,235
13,364,665 385,272 13,749,937
363,974 - 363,974
12,099,710 351,481 12,451,191
12,463,684 351,481 12,815,165
900,981 33,791 934,772
225,000 (225,000) -
1,125,981 ( 191,209 ) 934,772
21,628,936 220,215 21,849,151
22,754,917 29,006 22,783,923

TRUSTEES AND DIRECTORS

CHIEF EXECUTIVE OFFICER COMPANY SECRETARY MEDICAL DIRECTOR

PRESIDENT

REGISTERED AND PRINCIPAL OFFICE

INDEPENDENT AUDITOR

BANKERS

SOLICITORS

Neil Holbrook (Chairman) Ruth Goddard Dr Susan Owen John Parker Dr Janet Ropner Dr Valerie Udale Prof Gordon Wilcock Michael Yeates (resigned 04/06/2020)

Peter J Sharpe

Malcolm J MacKeith

Prof Iain Lyburn

Howard Crooks

Linton House Clinic

Thirlestaine Road, Cheltenham, Gloucestershire GL53 7AS

Crowe U.K. LLP

4th Floor, St. James House, St. James' Square, Cheltenham GL50 3PR

National Westminster Bank Plc

21 Eastgate Street, Gloucester GL1 2NH

Lloyds Bank PLC

Montpellier Cheltenham, Business Centre PO Box 1000 BX1 1LT

Nationwide Building Society Kings Park Road Moulton Park Northampton NN3 6NW

Willans LLP 28 Imperial Square Cheltenham Gloucestershire GL50 1RH

Cobalt Health was incorporated in England and Wales (registered no. 04366596) and has no share capital. Cobalt Health is registered as a Charity with the Charity Commission England and Wales (registered no.1090790).

P.56 – Cobalt Health Annual Report 2020/21

Cobalt Health Annual Report 2020/21 – P.57

In Memory of Cobalt Patron, Clive Richards CBE KSG DL 1937 – 2021

It was with great sadness, in April 2021, that we learned of the death of Clive Richards at the age of 83. Clive was Cobalt’s Patron and together with his wife Sylvia, a dedicated supporter of Cobalt.

Clive grew up in Birmingham and had a successful career in the City of London. He was a philanthropist and with his wife, Sylvia founded The Clive and Sylvia Richards Charity in 1986 of which he was Chairman. The focus of the Charity is to support education, healthcare, heritage, arts, religious institutions and overseas education. In 2000 Clive was awarded the OBE for charitable services and in the New Year’s Honours List in 2020 was awarded a Commander of the British Empire for services to Charity and to the community in Herefordshire.

GLOSSARY OF TERMS

CT

Computerised Tomography uses X-ray and a computer to generate detailed images of the inside of the body. A CT scanner consists of a X-ray tube that rotates around the body (in less than a second) and a series of detectors which collect the information from the X-rays; a computer then builds an image from the information received.

PET/CT

Positron Emission Tomography/Computerised Tomography, is a combination of two imaging technologies. A PET scan measures important body functions, such as blood flow, oxygen use and sugar (glucose) metabolism, to help doctors evaluate how well organs and tissues are functioning. Cancer cells, for example, use glucose differently to normal cells and for that reason look different on the pictures produced by the scan, this therefore enables doctors to diagnose and monitor cancer. The CT scan provides structural information of the body and by combining PET and CT this creates both a functional and structural image.

MRI

Magnetic Resonance Imaging is a non-invasive medical test that helps doctors diagnose and treat medical conditions. The MRI scanner uses a powerful magnetic field, radio frequency pulses and a computer to produce detailed pictures of organs, soft tissues and virtually all other internal body structures. Detailed MR images allow doctors to better evaluate various parts of the body and determine the presence of certain diseases that may not be assessed adequately with other imaging methods, such as X-ray.

Tesla

Tesla is the measurement of the magnetic field strength of an MRI magnet. In general terms a more powerful magnet can produce a more detailed image. The majority of the hospitals in the UK have a 1.5 Tesla scanner. Cobalt introduced one of the first 3.0 Tesla clinical service in the UK and currently operates the only mobile 3.0 Tesla service in Europe. 1 Tesla is equivalent to 20,000 times the Earth’s magnetic field

The Clive and Sylvia Richards Charity first supported Cobalt in 2013 with a campaign to fund digital breast screening equipment for the Hereford County Hospital and went on to generously donate towards many research and diagnostic scanning projects, including the ITM Imaging Centre at the Queen Elizabeth Hospital in Birmingham. In recent years the Charity also generously supported lung cancer screening programmes in Manchester, Hull, Newcastle and Gateshead. Clive lived his life to the absolute fullest and through his work his legacy lives on. He will be greatly missed.

P.58 – Cobalt Health Annual Report 2020/21

www.cobalthealth.co.uk

Charity REGISTRATION NUMBER: 1090790 COMPANY NUMBER: 04366596 Cobalt Health trading as Cobalt