2022-03-31-accounts

Registered number: 05397840 Charity number: 1108989

ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

CONTENTS

	Page
Reference and administrative details of the Company, its Trustees and advisers	1 - 2
Chairman's statement	3 - 4
Trustees' report	5 - 22
Independent auditor's report on the financial statements	23 - 26
Consolidated statement of financial activities	27
Consolidated balance sheet	28
Company balance sheet	29
Consolidated statement of cash flows	30
Notes to the financial statements	31 – 54

ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022

Trustees	Jonathan Trower, Chairman
	Darren Hayward
	Annalisa Ridsdill Smith
	Ramzi Freij
	Clive Gilham
	Roy Marfleet
	Claire Smith
	Andrew Tunningley
	Ellisa Estrin (Appointed 23/03/22)
Company registered
number	05397840
Charity registered
number	1108989
Registered office	Flight House, The Business Centre, Earls Colne Business Park
	Earls Colne
	Colchester
	Essex
	CO6 2NS
Website address	www.ehaat.org
Company secretary	Brenda Playford
Executive Team	Jane Gurney – Chief Executive Officer
	Neil Durge – Medical Director
	Peter Sherren – Assistant Medical Director
	Stuart Elms – Clinical Director (until 07/10/21)
	Cliff Gale – Operations Director
	Pam Withrington – Fundraising and Marketing Director
	Jonathan Ager – Finance Director
Independent auditor	Crowe U.K. LLP
	Riverside House
	40 – 46 High
	Street Maidstone
	Kent
	ME14 1JH
Bankers	Barclays Bank Plc
	40 High Street
	Chelmsford
	Essex
	CM1 1 BE

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ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Solicitors Nockolds LLP Market Square Bishop’s Stortford CM23 3UZ Investment manager Aberdeen Standard Capital Bow Bells House 1 Bread Street EC4M 9HH

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ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

CHAIRMAN’S STATEMENT FOR THE YEAR ENDED 31 MARCH 2022

Chairman’s Introduction

I am pleased to report that despite the considerable and ongoing challenges throughout the year caused by the COVID-19 pandemic, Essex & Herts Air Ambulance Trust successfully navigated the Year to 31[st] March 2022. The continuing clinical, operational and fundraising challenges brought about by the pandemic were all met, demonstrating the operational resilience of the Charity. In an ever-changing environment, a flexible and agile approach to our working practices across all areas of the Charity has ensured that we continued to operate safely and effectively for our patients.

The Charity provides a free-of-charge, pre-hospital emergency clinical service across Essex and Hertfordshire. Consequently, many of our staff have been on the front line of the COVID-19 crisis. The fact that we have continued to save lives so effectively in such difficult circumstances is a tribute to the skill of our clinical teams and pilots and the hard work of all who support them.

The table below details the number and types of incidents we attended during the year, up 9.2% on the previous year

	2022	2021
Medical Emergency	958	917
Road Traffic Collision	539	472
Other Trauma	895	913
Other Mission Types	162	36
Total	2,554	2,338

The year to 2022 has seen the slow recovery of the Charity’s community and corporate fundraising, both of which were adversely affected by the COVID-19 pandemic. For the second year running, fundraising events had to be cancelled, but we became more adept at hosting events virtually. Canvassing for both the Lottery and our Regular Giving programme was able to recommence, and our charity shops were able to re-open, having been closed for long periods of the previous year in accordance with Government guidelines.

With over 100 guests in attendance, we opened our new state-of-the-art airbase at North Weald on 19[th] October 2021, marking a milestone in the Charity’s history. In addition to outstanding operational and clinical facilities we now have areas for training, mentoring, patient liaison and fundraising, including an interactive visitor centre. We can welcome and engage with the local community, showcasing the vital work of our critical care team. This year was the first full year of operating from our new airbase and it is proving to be a great asset for the Charity both from an operational and fundraising perspective. In March 2022, the North Weald Airbase hosted a visit by Their Royal Highnesses The Earl and Countess of Wessex, together with other emergency service organisations from across the region, enabling Their Royal Highnesses to say thank you to these organisations for their outstanding hard work throughout the pandemic. During their tour, Their Royal Highnesses met members of EHAAT’s critical care team, charity staff and volunteers. They also spent time with representatives from local hospitals in the region as well as with airlifted patients and their families.

Each year the Trustees and Executive Team hold a Strategy Day when we consider the future strategic direction of the Charity. This year witnessed the creation of our new Centre for Excellence concept with a vision to create a world-leading community through which pre-hospital care is developed to achieve the best outcome for people in our region and beyond. This exciting initiative will expand our range of expertise and resources requiring considerable investment in the future. The Trustees have designated £1m of reserves for this important project.

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ESSEX & HERTS AIR AMBULANCE TRUST (A company limited by guarantee)

CHAIRMAN’S STATEMENT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Negotiations commenced during the year for the acquisition of a second AW169 helicopter. A contract was signed subsequent to the year end in May 2022, at the same time we agreed with Specialist Aviation Services Ltd (SAS), the current operators of our aircraft, that we would work towards holding our own Air Operating Certificate in the medium term. All of this will secure the long-term future of this Charity for the benefit of the people of Essex and Hertfordshire, but requires substantial expenditure and will only be possible if we continue to build our resources and enhance the financial strength of the Charity.

Following the introduction in 2019 of carrying blood products, we will be actively involved in the SwiFT Whole Blood Trial which will start recruiting patients in September 2022. This is a andomized controlled trial of prehospital whole blood versus standard care (separate blood components: packed red cells and plasma) for the resuscitation of patients with life-threatening haemorrhages. We are undertaking the trial along with nine other air ambulances.

I am pleased to report that EHAAT yet again demonstrated our financial resilience during the year culminating in an Operating Surplus of £3.4m resulting in overall reserves of £44.4m at the year end. We continue to be well supported by the people of Essex and Hertfordshire in spite of the enormous challenges faced by everyone. Our reserves comprise both restricted reserves and unrestricted reserves. Unrestricted reserves are available to be spent on any of the Charity’s purposes. Unrestricted reserves include both designated reserves and free reserves.

Due to the life-saving nature of our work, the Trustees take a cautious approach with regards to reserves, as closure of the service would be potentially catastrophic to the public we serve. Our Reserves Policy is to hold between 12 and 24 months of free reserves to safeguard the operation of our service for a prolonged period of time should our income fail as a consequence of an unexpected eventuality.

At the year end, sufficient free reserves were held to fund 19 months of forecast expenditure. This excludes £7.2m of reserves designated towards future helicopter procurement and also excludes the £1m designated for the Centre for Excellence. EHAAT is committed to increasing the diversification of its income sources to ensure a robust financial model which secures its service for the long term. A key aspect of this is to grow an endowment fund which will deliver a new stream of investment income and offer additional security to the Charity into the future. The endowment fund will provide a particularly appropriate way of stewarding generous legacy gifts received by EHAAT with the goal of supporting the Charity for generations to come.

The reserves policy is reviewed annually by the Trustees to ensure that any new or changed legislation or guidance is incorporated and to take into account any changes in the circumstances of the Charity.

I remain extremely proud of how our teams across all areas of the Charity’s activities have continued to respond to the ever-changing challenges of the last year. Therefore, on behalf of the Trustees, I would like to thank the Executive Directors for the leadership which they have shown; to thank our team, across all areas of the Charity’s activities, for their dedication, enthusiasm and hard work in often difficult circumstances; and to thank our volunteers and supporters, whose interest and commitment has remained undiminished throughout a second year when much of their normal work on our behalf has been curtailed.

Finally I would also like to give my personal thanks to my fellow Trustees for their support and hard work over the last year when again, the Charity has made a much greater call on their time than it would do normally, and to welcome Ellisa Estrin to the Board of Trustees. Ellisa has extensive charitable experience particularly in the field of fundraising.

Jonathan Trower

Chairman Date:

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ESSEX & HERTS AIR AMBULANCE TRUST (A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

Within the Trustees’ Report is the Strategic Report, required under Section 414c(11) of the Companies Act 2011.

1. Structure, Governance and Management

The Trustees, who are also Directors of the Company for the purposes of the Companies Act, submit their annual report and the audited financial statements for the Group for the year ended 31 March 2022. The Board confirms that the Trustees’ Report and financial statements of the Group comply with current statutory requirements, the requirements of the Charity’s governing document and the provisions of the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’ issued in July 2014 (FRS102 SORP 2015).

a) Governing Document

Essex & Herts Air Ambulance Trust (EHAAT or the Charity) is a company limited by guarantee and was incorporated on 18[th] March 2005. It is governed by its Memorandum and Articles of Association which was last amended on 22[nd] March 2018. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per Member (the members being the Trustees).

b) Appointment of Trustees

Trustees are selected by reference to a matrix of skills and experience that has been established to ensure that the Charity’s objectives can be met. The matrix includes clinical, budgeting and finance, legal, fundraising, marketing, commercial sales, public relations, IT, HR management, community and voluntary sector expertise, risk and strategic planning.

New Trustees are given an induction pack at an orientation meeting to brief them on both the charity and on their legal obligations under charity and company law. It includes the Articles of Association, a Duties of Charity Trustees booklet, and strategic and business plans. We also arrange for them to meet the CEO, Executive Team and the wider staff spending a day at the head office. Trustees are given specific Charity information as well as external training. We have also recently introduced an informal “buddy” system which allows new Trustees to have support and guidance from more experienced members of the Board as required.

There is currently no upper limit to the time that an individual can be a Trustee, but one-third of all Trustees are required to retire by rotation each year and, if willing to continue, offer themselves for re-election.

c) Values Our actions are guided by our values – passionate in going the extra mile; professional in treating everyone as they would wish to be treated; innovative in driving forward best clinical practice; trustworthy in working openly and honestly and dedicated because we care about the cause, our patients and each other; and inclusive in treating everyone in the way which we ourselves would like to be treated.

d) Organisation

The Board of Trustees which governs the Charity can have up to twelve members — there are currently nine Trustees with a quorum requirement of five at all meetings. The Board met five times during the period under review. The Trustees delegate the day-to-day management of the Charity to an Executive Team by means of a formal Scheme of Delegation. Committees comprised of both Trustees and Executive Team members are established where necessary to advise the Board on various strategic matters, and there were five in operation during this financial year. These included the ongoing committees covering Investments, Audit and Risk, Retail and Nominations. A new committee was formed during the year, the Clinical Committee, to provide an oversight function and support the clinical strategy.

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ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Committee/Group	Trustees
Investment Advisory Committee	Andrew Tunningley (Chair), Jonathan Trower, Clive Gilham
Audit and Risk Committee	Clive Gilham (Chair), Andrew Tunningley, Roy Marfleet
Nominations Committee	Darren Hayward (Chair), Jonathan Trower, Annalisa Ridsdill Smith
Retail Advisory Committee	Claire Smith (Chair), Annalisa Ridsdill Smith, Roy Marfleet
Clinical Committee	Ramzi Freij (Chair), Jonathan Trower, Ellisa Estrin

e) Pay policy for senior staf f

The Trustees consider that the Board of Trustees and the Executive Team (as detailed on page 1) comprise the key management personnel of the Charity. Trustees are not remunerated. The pay, related policies and annual remuneration of the Chief Executive Officer are decided by the Trustees, whilst the pay for the remainder of the Executive Team is decided by the Chief Executive Officer after consultation with the Trustees.

When setting remuneration levels, the Charity aims to strike a balance between market-appropriate pay, the need to attract and retain people with the necessary skills we require, and the public's and our donors' expectations that the money which they entrust us with will be used wisely to provide a first-class helicopter emergency medical service.

It is central to achieving our objectives that the Charity can attract and retain high-performing senior leadership. Remuneration may vary depending on the job type, its complexity and the range of activities undertaken. It is validated objectively using market comparators such as salary survey data from charitable, private and public sectors as required. Independent advice from suitable third-party professionals is also sought where deemed to be necessary, coupled with benchmarking against comparable Air Ambulance charities and other third sector organisations.

We are committed to fairness in our remuneration practices and follow these guiding principles:

• Proportionality – fairness and consistency in line with appropriate benchmarks

• Rewarding Performance – ensuring an individual’s remuneration is commensurate to their performance and personal contribution to the charity

• Recruitment and Retention – enabling us to attract and retain valued staff

• Expertise and Experience – is appropriate for the role

• Transparency – openness and clear communication about the process undertaken when setting remuneration levels across the organisation

When setting remuneration levels, the Trustees are cognisant of the requirement to apply funds raised to best meet our charitable objectives. The Trustees are confident that the current level of reward has enabled the Charity to recruit and retain a strong committed leadership team in order to deliver these objectives for the Charity and those it serves.

f) Structure The Charity has four wholly-owned subsidiaries: Essex & Herts Flight for Life Lottery Limited, Essex & Herts Flight for Life Lottery Operations Limited, Essex & Herts Flight for Life Lottery Critical Care Limited and Essex & Herts Air Ambulance Trading Limited. The principal activities are to operate weekly lotteries together with raffles and to account for the Charity's trading activities respectively. The profits of all companies are donated to the Charity under a Deed of Covenant.

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ESSEX & HERTS AIR AMBULANCE TRUST (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

g) Code of Governance

The Trustees look to promote good governance throughout the Charity, continuing to ensure we operate, where applicable, in line with best practice as set out in the Charity Code of Governance. During the 2020-21 financial year, as part of this process, EHAAT had engaged a specialist to perform a Board Effectiveness Review to consider its activity and function. The Trustees were reassured that the Charity already met the majority of recommended practice detailed in the Code and are making progress on areas identified where improvements could be made. The latest update to the Code has expanded best practice with regard to diversity and inclusivity, so the Board is focused on expanding its own policies and practices to further ensure that obstacles to participation are reduced and reflect different perspectives, experiences and skills.

h) Related Parties

Trustees and members of the Executive Team are the people who can control or significantly influence our Charity, and so they disclose their interests in a register which is reviewed annually by the Board of Trustees as a whole. In addition, there are occasional transactions which directly involve individual Trustees, and when Trustees consider these arrangements, the relevant Trustee leaves the Board Meeting for such business. All such transactions which arose during this financial year are disclosed in this annual report within Note 26.

2. Objectives and Activities

a) Objectives

The objective of the Trust is to assist in relieving sickness by the operation of a Helicopter Emergency Medical Service (HEMS) to the counties of Essex and Hertfordshire and surrounding areas. The Trust may also undertake other charitable activities for the relief of sickness consistent with this.

b) Public Benefit

The Trust provides a free of charge, pre-hospital emergency clinical service that assists people in our geographical area, and adjacent areas, with serious illness or injuries and helps save lives. In shaping the objectives of the Trust for the year and planning our activities, the Trustees have considered the Charity Commission’s guidance on public benefit.

c) Activities

Essex & Herts Air Ambulance, unlike the NHS emergency services, is a charity providing a HEMS for the critically ill and injured of Essex, Hertfordshire and surrounding areas. Our fundraising activities are planned to optimise our income to fund this life-saving service and build the Charity's brand awareness. Transparency and good governance are recognised as being essential to maintain the trust and support of members of the public and their resulting financial generosity.

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ESSEX & HERTS AIR AMBULANCE TRUST (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

3. Strategic Report

Achievements and Performance

a) Operations

The Charity's owned AW169 helicopter has been in operation for five years and continues to demonstrate itself as a stable, modern platform enabling the Pre-hospital Care Doctors and Critical Care Paramedics to provide the best possible clinical care and treatment for our patients. The leased MD902 helicopter carries identical aircrew and equipment to mirror the same life-saving care provided in the AW169. Both aircraft are maintained by SAS, who also provide the pilots and co-pilots

SAS has been providing helicopters, pilots and aircraft maintenance for the emergency services for over 35 years and is recognised as one of the leaders in the industry. SAS and representatives of the Charity meet twice a year to formally review the contract arrangements and ensure compliance. We have been trading with SAS since 2008, but we monitor the industry more widely to ensure that we continue to receive value for money for a safe, secure and high-quality service.

We operate from our airbases at Earls Colne and North Weald airfields, where we ensure a safe working environment which complies with stringent Civil Aviation Authority (CAA), Care Quality Commission (CQC) and Health and Safety requirements. This operating structure enables us to be more effective and has many costsaving benefits for the Charity too. Our service is operational seven days a week. Each base works a twelve-hour helicopter shift when daylight hours allow. When daylight hours are reduced, the shift continues in a rapid response vehicle (RRV). Both the airbases and the flying operation are regularly inspected and audited by the CAA to ensure compliance with regulations and safety. The four RRVs, all Volvo XC90s, are specially equipped to support our HEMS operation. Two are located at each airbase and are used when the helicopter is unavailable due to weather, daylight limitations or helicopter maintenance. An additional night RRV shift is provided at North Weald, which means the airbases work together to provide optimum cover for both counties and surrounding areas 24 hours every day of the year. The year saw the introduction of two hybrid RRVs with the intention to replace the remaining two vehicles with a similar specification during the next year

The new airbase at North Weald and upgraded facility at Earls Colne have proven to be superior environments to work, train and deliver the service, as well as help in reducing our carbon footprint due to the modern design and materials used. They have also improved the rest facilities available to the crew, aiding their wellbeing.

Our partnership working with the East of England Ambulance Service Trust (EEAST) continues to strive for effective tasking (activation) of the clinical crews 24/7 through the Clinical Coordination Desk (CCD). The CCD is responsible for the tasking of all specialist assets, including helicopters, across the East of England region. The Critical Care Paramedics from our operation form part of the rota that staffs the CCD.

The effectiveness of the tasking continues to be monitored at operations meetings involving the Charity, EEAST, and our neighbouring air ambulances, MAGPAS and East Anglian Air Ambulance. It is also subject to a monthly 'key performance indicator' (KPI) monitored by the Trustees.

The COVID-19 pandemic has continued throughout this year which has resulted in the additional safety measures being maintained. These included operational and aircraft modifications to ensure crew safety. These are monitored on an ongoing basis and changed or upgraded where necessary to provide the best protection for personnel. As the pandemic restrictions began to ease, we saw an increase in activations. The charts below show a comparison to the previous year. Helicopter activations have increased by 11.6%, RRV's 6.8% and overall 9.3%.

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ESSEX & HERTS AIR AMBULANCE TRUST (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Operational performance data provides the following results:

Activations

----- Start of picture text -----
Activations
RRV
Helicopte
r
1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400
2021 2022
----- End of picture text -----

Mission types

----- Start of picture text -----
Mission Types
Other mission
types
Other trauma
Road traffic
collision
Medical
emergency
0 200 400 600 800 1000 1200
2021 2022
----- End of picture text -----

Operational outcomes

Operational Outcomes

----- Start of picture text -----
RRV stood down
Helicopter stood down
Treated but not conveyed
Conveyed to hospital
0 200 400 600 800 1000 1200
2021 2022
----- End of picture text -----

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ESSEX & HERTS AIR AMBULANCE TRUST (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Carbon Footprint

Following the engagement of a specialist carbon consultant to calculate the Charity's carbon footprint for the year 2019-20, a similar report was commissioned for the year 2020-21. As a result of the recommendations of that report, those measures which could be implemented immediately have been introduced, including;

• Electric vehicle charging points installed at both airbases and Charity headquarters

• CEO company vehicle changed to a hybrid model

• Two remaining RRVs due for replacement in 2022 will be hybrid

• Telematics installed on all vehicles to monitor driving efficiency and safety

• Policy decision for hybrid or all-electric vehicles to be considered when other Charity vehicles are due for replacement

Those recommendations which will take longer to implement are now works in progress, including;

• Switching to green energy tariffs for electricity supplies when the existing contract for supply finishes in mid 2023

• Modern more efficient heating system to be installed at the Earls Colne airbase

• Investigation into installing solar panels at the Earls Colne airbase

• Participate in a tree planting program

• Monitor progress of aircraft biofuels

• Set specific reduction targets with the objective to be carbon neutral in the future

b) Clinical

Clinical Leadership

With the inevitable disruption as a result of our base improvement programme, changes in personnel and staff rotations, this has been a busy year for the clinical team, all whilst continuing to manage the constantly evolving challenges of the pandemic.

After 11 years with the Charity, Stuart Elms, our Clinical Director, decided to leave us to pursue a development opportunity elsewhere within the Air Ambulance sector. His replacement, Adam Broom, comes to EHAAT, having previously worked for the Thames Valley Air Ambulance for 14 years. He has a proven track record and a wealth of experience within the private and NHS arenas.

Covid-19 Pandemic.

We continued to provide high-level medical care to the people of Essex and Herts throughout the ongoing pandemic, supporting our strategic partners throughout the region. We successfully covered dropped shifts whilst team members were isolating, which was only possible due to the incredible support of our wider clinical team, often at very short notice. At the height of the pandemic, EHAAT were also able to support the NHS by performing critical care transfers, both regionally and nationally. This allowed patients to be moved to hospitals that had the capacity to receive patients with complex clinical needs, ensuring that no one area became overstretched.

The continuing generosity of the general public, together with local businesses and organisations, helped ensure we had sufficient levels of equipment to protect our crew and patients thereby supporting the resilience of our service.

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ESSEX & HERTS AIR AMBULANCE TRUST (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Clinical Service

Both aircraft and our rapid response vehicles continued to be very active across the region. Our teams continued to provide high levels of enhanced care, clinical decision making and patient assessment to our EEAST and LAS colleagues, supporting and enhancing successful patient outcomes.

The night time rapid response vehicle operating from North Weald continues to prove itself as a valuable resource to both our patients and the East of England ambulance service. The number of patients attended continues to grow. In total, it was activated 788 times and treated 500 patients, which represents an increase of 109 activations and an increase of 75 patients treated over the last year. The teams on the night time rapid response vehicle delivered 48 Pre-hospital Emergency Anaesthetics and pre-hospital blood products to 22 patients, a treatment that beforehand would have only been available in hospitals.

Across the service, blood products were administered to 66 patients during this period, and we continue to work closely and in partnership with the National Health Service Blood and transfusion (NHSBT) at Princess Alexandra Hospital in Harlow and the Essex Voluntary Blood Service to deliver a very successful, safe patient care regime.

Emeritus Doctors

The recruitment of Emeritus Doctors has commenced, with a very high volume of applications being received from both former and current doctors. The Emeritus team will allow us to retain the knowledge, skill and expertise of doctors that we have trained during their secondments. They will also provide greater levels of resilience, reducing further the risk of dropped shifts while also underpinning a level of supervision and training for our future cohorts of doctors and paramedics. This will ensure that the world-class levels of care we provide to our patients are maintained into the future. We anticipate that the emeritus doctors will be operational by our third quarter.

Welfare & Support

Team welfare is a key priority for the organisation. As such, a great deal of emphasis is placed on ensuring that not only our clinical team but also the wider charity family is supported as required.

The clinical team can access Trauma Risk Management (TriM) via EEAST. TRiM is a trauma-focused peer support system designed to help people who have experienced a traumatic or potentially traumatic event.

Alongside this, all staff have access to the chaplaincy team, mental first aiders (trained staff within the organisation), wellbeing phone apps, self-directed learning, individual counselling, and team meetings led by a clinical psychotherapist.

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ESSEX & HERTS AIR AMBULANCE TRUST (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Research

This year has seen a number of achievements in research, service evaluation and audit activity. These include:

• Submission of a paper reporting a quality improvement project entitled 'A psychological resilience briefing intervention for Helicopter Emergency Medical Services (HEMS) observers' to the Air Medical Journal .

• Completion of the National Delphi Study to establish current research priorities for pre-hospital critical care in the UK. The paper has recently been submitted to the Emergency Medicine Journal (May 2022).

• The introduction of Zoho Analytics software within EHAAT will be valuable in supporting our research, service evaluation and audit activity by providing live data and reports on key performance indicators and other areas of interest. Sarah McLachlan, our Post-Doctorate Research Fellow, has been collaborating on several projects with our neighbouring air ambulances, East Anglian Air Ambulance and Magpas, including:

• A project to gain insight into the benefit of HEMS as perceived by HEMS clinical teams and ground ambulance staff

• A project to improve the efficiency and accuracy of HEMS tasking.

Clinical Governance

We are delighted to report that we have resumed the weekly face-to-face Death and Disability (D&D) sessions at our North Weald Base, where previous cases are reviewed to monitor the quality of patient care for the purpose of learning. The D&D days have been further enhanced with the addition of Clinical Pathology correlation days in which Dr Ben Swift, a forensic pathologist, uses injury patterns and post-mortem findings to further enhance the sessions, allowing us to learn from patients who have, sadly, died.

Clinical Risk & Safety

The Head of Patient Safety & Quality (HoPSQ) role has been embedded well into the EHAAT clinical leadership team since its inception in 2021. The role ensures that a culture of patient safety is at the heart of all that the Clinical Team do in order to prevent or reduce errors and improve the overall quality of the care provided. The HoPSQ leads the multi-professional Clinical Risk & Safety Committee (CRSC), whose role it is to maintain oversight of reported clinical incidents and their subsequent investigations, to ensure that quality is maintained at all stages of the investigation, and that appropriate action is taken to prevent reoccurrence. The HoPSQ also maintains oversight of clinical notice read compliance, and compliance with the Clinical Team's Critical Clinical Case Passport (CCCP); a set of training scenarios which aim to ensure that the Clinical Team is well prepared for those clinical interventions which are rarely performed.

Care Quality Commission

With the government's review and subsequent stepping down of covid restrictions, the CQC has begun to return to a normal schedule of inspections. As such, we anticipate that we will be inspected in the near future. The purpose of their inspection is to ensure that patients have received safe, effective, compassionate and high-quality care.

Our CQC Registered Manager continues to ensure that we are patient and family centred in our service provision. They also guide and work with the Trustees, Executive Team, and the entire Clinical Team to ensure that EHAAT is ready for any inspection by evidencing and demonstrating the outstanding level of care we provide. They also engage with the CQC to further understand and prepare for future changes to how the CQC monitor, regulate and inspect service providers.

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ESSEX & HERTS AIR AMBULANCE TRUST (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Patient Liaison

The past year has continued to prove challenging for the Patient Liaison Team due to the ever-changing restrictions caused by COVID 19. Despite these challenges, we have continued to support as many EHAAT patients and families as possible via phone, zoom, and the occasional base visit as restrictions allowed.

With the creation of two new Patient and Family Liaison Officer roles, the Patient Liaison team has been renamed the Patient and Family Liaison team. These new roles are already proving to be an essential part of the EHAAT team, allowing us the scope to contact and support an ever-increasing number of EHAAT patients and their Families. Completion of the Supporter Hub at our North Weald Airbase has provided the Patient and Family Liaison Team with a dedicated environment in which to host Patients and Families for what can be an extremely emotional and difficult visit.

Training

Installation of the Immersive Training Suite at North Weald Airbase is complete. It allows both our and wider teams to immerse themselves in a wide variety of scenarios and environments which are reproducible and easy to set up. Combined with high-fidelity manikins, the suite allows the team to practice clinical skills that can be recorded or streamed as well as allowing for supervision and structured debriefing. The suite has also enabled joint training with multi-agency partners such as the Police Firearms Team and medical personnel from the armed forces, which allows us to support them in providing better patient outcomes.

We continue to provide the open online lecture series that began in November 2021. The lectures are incredibly well attended, with numbers increasing. Feedback indicates that the sessions have been very well received by participants, and we are starting to see international attendees.

With the relaxation of covid regulations, student elective placements have resumed enabling medical students to gain an insight into the pre-hospital setting. During the placement, students have the opportunity to observe clinical practice and take part in the D&D days. The placements are a valuable recruitment tool, and to that end, we are delighted to report that a former student, once qualified, went on to complete a secondment with us and will be joining us as one of the Emeritus doctors.

Centre for Excellence

The vision for the Centre for Excellence is to create a community through which pre-hospital care is developed to achieve the best possible outcomes for people in our region and beyond.

It will be based on the four 'Pillars' of Education & Training, Research & Scholarship, Community and Innovation to create the foundations for three clinical domains, which will explore clinical best practice in patient experience and outcomes, head injuries and cardiac arrest.

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ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

c) Fundraising -

Generating Funds

The pandemic and subsequent restrictions impacted fundraising as we continued diversifying our income streams during another turbulent year. That said, we were pleased to see signs of a return to 'normality' as government restrictions were gradually eased, such as the return of canvassers and the re-opening of our charity shops.

As we moved through the four phases in the government's roadmap out of lockdown, the pandemic continued to affect fundraising. However, we gained momentum as tin collections, events and volunteer activity restarted. Throughout all stages of the pandemic, our fundraising team has proven how agile and creative they can be, addressing immediate challenges whilst engaging with our supporters to keep relationships and communications active.

Flight for Life Lottery

Our monthly Lottery plays a crucial part in raising the vital funds needed to operate our life-saving Charity. With restrictions easing on 12th April 2021, we welcomed back our canvassers. Having our team back on track working door-to-door meant our fundraising activities could finally return to a more normal footing. At the end of March 2022, the number of individual supporters playing our Flight for Life Lottery was 101,207, playing a total of 184,354 chances, up from the 179,755 chances last year.

We contract two professional canvassing organisations which represent our values to the wider community. Through contractual terms and conditions, regular meetings and training, we ensure they follow the Charity's values and that their activities are closely monitored. All complaints received are followed up with the canvassing companies concerned and are reported to the Board of Trustees every month. During 2021-22, we received 10 such complaints, out of 36,883 new sign-ups. The activities of these organisations are also regulated by the Gambling Commission and Fundraising Regulator. In our efforts to help protect vulnerable people, we require all canvassers to be Dementia Friends and to attend a dementia awareness training course. Underage players are not permitted to join the Lottery; we also limit the number of chances players may have in the Lottery.

Legacy, In Memory and Raffle Income

We continue to promote legacies through a range of sensitive campaigns across different media platforms, including radio, local press and social media. Last year, due to the pandemic, we were unable to hold our two annual legacy events. In the year to the end of March 2022, the amount received via legacies went down from £3m in the previous year to £2.3m, a decrease of 23%, but 2021 was an exceptional year for legacy income.

Our 'in memory' income remained strong during this period, with £310k received for the year. We are touched that people continue to think of the Charity at such a difficult time.

Our three raffles also performed better than the previous year, perhaps because supporters continue to turn to other ways to support us from home. Spring/Summer/Winter 2021 generated £382,498 against Spring/Summer/Winter 2020 income of £334,099, an increase of 14.5%.

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ESSEX & HERTS AIR AMBULANCE TRUST (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Retail Division

The COVID-19 lockdowns and restrictions continued to severely impact the Retail Division, with all shops closed as we entered the financial year. We re-opened our charity shops on 12th April 2021, with staff and volunteers busy managing large volumes of donations and engaging with new and returning customers.

Our newly formed Retail Advisory Committee continues to oversee the hard work involved in implementing and delivering our retail strategy. With volunteer retail experts working alongside the Head of Retail and the rest of the Retail Advisory Committee, we have the significant retail experience to guide us with implementing the strategy, which includes opening new shops, ecommerce, sustainability, improving processes and procedures and, of course, developing our team.

Our retail operation plays a vital role in driving sustainability, with each of our eight charity shops providing an ethical option for people choosing to dispose of unwanted goods. Every pre-loved item we sell makes a positive difference to our carbon footprint and helps tackle climate change.

Regretfully we had to close our Frinton-on-Sea shop permanently. Before the pandemic took hold, it was clear the number of people visiting the Frinton shop was lower than we anticipated and therefore projected income targets were not being met.

Virtual Events

We continued responding to the challenges of the pandemic on the front foot, running a series of virtual events and opening up ambitious fundraising campaigns to broader audiences. We relaunched 'Motorcycle Run: I Did It My Way', an initiative which saw hundreds of bikers riding a minimum of 60 miles at a suitable time in a safe and distanced fashion, ‘100 Miles In May' our walking challenge and 'Tack 2 Hack', a new equine event for horse lovers. Each virtual event played a vital role in raising awareness, and in total, they generated just under £50,000 in net income, which is even more critical during uncertain times.

Blood On Board

On average, it costs £500 to help one patient in need of blood. We launched our second 'Blood On Board Appeal' in January 2022, raising £6,116.

Earls Colne Sculpture

To mark the official opening of the newly extended and refurbished Earls Colne Airbase, we unveiled a unique sculpture, "Supporting Us, Supporting You", which takes pride of place at the airbase entrance. The sculpture results from the Charity's Sculpture Design Project, in collaboration with Harlow College, which represents the local community who support us.

New Head of Philanthropy

On 7th February 2021, our new Head of Philanthropy joined us to develop, implement, deliver and lead our major giving programme across Essex and Hertfordshire. They come with a wealth of experience and will work closely with the Chairman, CEO and Fundraising & Marketing Director on developing strategy, processes and cases for support.

Restart a Heart Day

In recognition of International' Restart a Heart Day,' our pre-hospital care doctors, critical care paramedics and volunteers delivered free CPR and defibrillation demonstrations to over 300 members of the public on 16th October 2021. Each session gave participants the awareness, hands-on experience and confidence needed to provide assistance in the event of a cardiac arrest medical emergency.

Air Ambulance Week

During Air Ambulance Week (6th to 12th September 2021), we joined other UK air ambulances in a campaign called "Every Second Counts and Every Penny Matters". The initiative saw thousands of supporters and volunteers come together to raise awareness of the 21 Air Ambulance services, which help save lives across the UK.

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ESSEX & HERTS AIR AMBULANCE TRUST (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Regular Giving

Regular Giving has continued to show strong growth. For the year ending 31st March 2022, we recruited over 2,860 new regular supporters, an increase of 208% from last year's numbers. This brings our active supporter base to over 4,330. Cumulative income for the year is in excess of £240,000, supplemented by an additional £65,400 in Gift Aid.

New areas of development have been channelled through Telemarketing, such as successfully implementing a Warm Data Upgrade Campaign, as well as a Social Media Value Exchange Campaign. Both initiatives were great successes, collectively attracting over 1,000 Regular Giving sign-ups. In addition, the introduction of Business Regular Giving, utilising our existing canvassers, has seen our Business Regular supporters grow in numbers to around 100. A mix of sole traders, partnerships and limited companies across both Essex and Hertfordshire gave a healthy average monthly donation in excess of £17.

Payroll Giving provided an additional income of £26,400

Hertfordshire Focus

The public awareness of the Charity continues to be greater in Essex than in Hertfordshire. To address this imbalance, three years ago we implemented a 5-year marketing campaign focusing on three different key Hertfordshire towns each year. This is designed to raise awareness within the local communities that we are a charity and need ongoing support to continue our life-saving work. It is hoped that the carefully planned awareness campaigns will also, over time, encourage general donations, participation in our fundraising initiatives and secure more corporate and community group partnerships.

Volunteers

Our dedicated team of volunteers play a vital role in raising awareness of our life-saving work, assisting with support in our local communities and helping to increase income. At year end, we were supported by 412 volunteers, slightly down from 422 at the end of last year.

National Volunteers' Week took place during the first week of June as we celebrated and thanked our volunteers for their generosity and hard work. In addition to sharing a thank you video on our website, we also featured a series of volunteers' stories online and across social media, raising awareness of their amazing work.

We also had the pleasure of hosting Vision 21/22 at our North Weald Airbase. Over 50 volunteers attended the day as we conducted tours of the building, presented recognition awards and outlined the Charity's exciting plans for clinical, operations, fundraising and marketing.

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ESSEX & HERTS AIR AMBULANCE TRUST (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

d) Financial Review

The consolidated accounts are for Essex and Herts Air Ambulance Trust and its wholly owned trading subsidiaries Essex & Herts Flight for Life Lottery Limited, Essex & Herts Flight for Life Lottery Operations Limited, Essex & Herts Flight for Life Lottery Critical Care Limited and Essex & Herts Air Ambulance Trading Limited.

The financial highlights of the year include:

• Total incoming resources decreased by 11.4% to £15.5m (2021 - £17.5m).

• Total resources expended increased by 7.1% to £12.1m (2021 - £11.3m).

• Operating Surplus decreased by 45% to £3.4m (2021 - £6.2m).

• Retained reserves increased to £44.4m (2021 - £40.4m). Of this £19.2m is designated funds which includes £7.2m designated for a second AW169 together with £11m of fixed assets which includes the existing aircraft, together with the new airbase at North Weald together with £1m designated for the Centre for Excellence.

A breakdown of amounts held in specific funds for restricted, unrestricted and designated purposes is shown in note 18 of the financial statements.

Income Generation

Our regular sources of income showed signs of recovery, with donations and collection tins up by £217k (17.5%) from last year but not yet back to pre-pandemic levels. With the high streets re-opening, income, as expected, from our charity shops was up sharply, £480k (210%), with events income also up £92k (303%). Lottery sales were down £420k (4.2%) as we saw the cumulative effect of players lost throughout last year. Reported total group income (incoming resources) decreased in total by £2m (11.4%) over the previous year. This was a result of the particularly strong legacy income in the previous year coupled with the receipt during 2020/21 of £1.25m Government funding towards the construction cost of our new airbase at North Weald, which was a one-off and not repeated this year.

Resources Expended

Total group expenditure (resources expended) increased by £808k (7.1%) in the year. This was driven by higher levels of expenditure on raising funds, resulting from the return to canvassing for both the Lottery and our regular giving programme following the lifting of lockdown restrictions, together with higher running costs for the charity shops after having been closed for significant periods during the previous year. Our expenditure on charitable activities was in line with the previous year falling slightly by 2.1% as certain costs incurred last year at the outbreak of the pandemic were not repeated. The Charity also incurred £0.8m (2021 - £4.3m) of capital expenditure in the year, including £150k on motor vehicles including two new Volvo hybrid Rapid Response Vehicles, £410k completing and fitting out the North Weald and Earls Colne Airbases including the provision of charging points for electric vehicles. We also spent £68k on an engine filter system for the AW169 in order to protect our asset.

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ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Performance Summary

Although many underlying levels of income were up on last year, the previous financial year benefited from some exceptional items such as the unusually high level of legacy income, Government funding in relation to the North Weald airbase and investment gains, which resulted in a reported surplus for the year of £7.99m, a fall to a more normal level this year was therefore expected.

Our net cash balances and investments at the year end were £35.6m, up £5.1m from last year.

Reserves Policy

Unrestricted reserves are freely available to be spent on any of the Charity's purposes; these amounts are contained within the General Fund. In this context, reserves exclude tangible fixed assets held for the Charity's use. The Trustees aspire to hold between 12 and 24 months of total expenditure in unrestricted general reserves to safeguard the operation of the service should our income fail or in the event of an unexpected eventuality. Current unrestricted general reserves represent 19 months' forecast total expenditure. Taking into account the continuing economic uncertainty coupled with the current strategy to expand both service delivery and related fundraising activities significantly in the medium term, the Trustees consider the current levels of reserves to be appropriate in ensuring the Charity remains robust – and can continue to operate during this period of great uncertainty. The uncertainty over future income streams and increased expenditure brought about by the coronavirus pandemic, suddenly higher inflation and the invasion of Ukraine have demonstrated the importance of a robust reserves policy to protect the Charity. Below is a breakdown of the reserves the Charity has.

	2022	2021
Total reserves	44,418,505	40,416,869
Less:
Designated reserves	(19,238,721)	(11,012,200)
Restricted reserves	(876,132)	(1,625,083)
Free reserves	24,303,652	27,779,586

Investments

Our investment portfolio, managed by Aberdeen Standard Capital (formerly known as Standard Life Wealth), increased in market value across the period by £787k, having a market value at the year end of £17.6m. This is a notional gain only; our investments are held for the medium to long term and are made using professional investment advice. We consider the security of our investments, our future funding needs and market returns available for a given level of risk.

Cash reserves of £14.3m were held in two liquidity funds managed by Aberdeen Standard Capital. The Trustees' treasury management policy is designed to ensure that the primary objectives of safeguarding EHAAT's assets and limiting its risk are balanced with the achievement of a satisfactory return. Security, liquidity and yield are each assessed for their appropriate balance within the application of the treasury policy.

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ESSEX & HERTS AIR AMBULANCE TRUST (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

e) Plans for future

Clinical

With the world opening up again, it is possible for us to engage more easily with external stakeholders. We are able to welcome guests once again to the bases, including patients and family, but also guest speakers for our D&D days. We have also been able to re-introduce elective placements for medical students, which enables us potentially begin the process of creating the next generation of HEMS doctors. All of this whilst launching the Centre for Excellence, which will enable the research and development of pre-hospital care through the use of innovative techniques, support, and training for first responders. In doing so, we will be maximising the utilisation of the state of the training facilities available at our North Weald airbase while seeking to build a reputation as a leading international training centre in Prehospital Care for Trauma, Medical, and Cardiac, which will benefit patients not only in Essex and Herts but globally.

Cardiac arrest is a clinical domain within the Centre for Excellence.

Our vision is that as part of the Centre for Excellence, CPR and defibrillation training will be rolled out, alongside other life-saving first aid techniques, to charity staff, volunteers, supporters, and schools to equip young people with a life-saving skill.

Operations

While we operate a 24-hour service, we can currently only fly during daylight hours, the hours of darkness being covered by our RRVs. This means we cannot accept a mission in a helicopter when it is dark. We are working with our operator to agree on a programme of training and equipment purchase to allow the North Weald Helicopter to fly when it is dark.

Terms have been agreed to purchase a second AW169 to replace our existing leased MD902 based at our Earls Colne airbase. The anticipated entry into service of this new helicopter is spring 2024 after its medical fit-out to mirror the equipment carried on the existing AW169 operating from our North Weald airbase.

The purchase of a second AW169 means the EHAAT will then be operating identical aircraft types, which will assist in its strategic objective to operate under its own Air Operator Certificate. The current contract arrangement with SAS ceases in 2026.

Fundraising

Having successfully navigated the challenges posed by COVID-19, we remain focused on reaching new audiences and keeping existing supporters engaged by combining a variety of exciting fundraising and marketing initiatives. The new North Weald Airbase and Earls Colne improvements reflected the importance of investing for the future. We look forward to welcoming supporters to our new exciting interactive visitor centre at North Weald as we venture back to in-person community fundraising events.

Ray Winstone, Celebrity Patron

We were pleased to have our celebrity patron, Ray Winstone, visit the North Weald airbase in March 2022. As a volunteer, he gave his time for free, allowing us to record video, radio commercials and take photos to support campaigns for the year ahead, such as Air Ambulance Week, National Restart A Heart Day, Regular Giving and Sustainability.

New Website and CRM Integration

Our website is the digital entry point into our Charity, allowing us to share our story, expand our reach, connect with supporters and drive donations. As part of our commitment to continuously improve our online presence, we will soon begin work on the new website. The new website will enable us to connect with a broader demographic, increase online donations and reduce the amount of time manual input is required. We will also be integrating our customer relationship management system to protect our supporters' data, improve efficiency and provide insight which will guide our decision-making going forward.

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ESSEX & HERTS AIR AMBULANCE TRUST (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Retail

We will remain focused on delivering our long-term retail strategy, which will include more shops and maybe even a superstore. We are working on delivering some new initiatives which will help drive supporter engagement.

We are excited to be working with E-productive, who are launching their new app 'My Charity Shop,' available in the App Store and on Google Play. The app will allow our supporters to manage their donations more easily and to keep track of gift aid. There will be a store locator tab, a volunteer tab for all volunteering opportunities across the Charity, a sustainability tab which will give daily updates along with an eBay tab for easy access to our eBay shop.

Again, with E-productive, we are looking at the possibility of introducing customer-facing small screens linked to our tills which can be used to share messages with supporters about how else they can engage with the Charity. We could also encourage an additional 'donation' at the point of sale; the screens could be used to promote gift aid and volunteering. We are currently exploring the options and costs and hope to install the screens in all our shops during 2022/23.

Earls Colne Visitor Centre

Having successfully launched our Visitor Centre at our North Weald Airbase, we are now looking at how we can replicate key elements to create a similar visitor experience at our Earls Colne airbase. We hope to have this new interactive space ready by the end of 2022 so that our supporters can visit us to learn more about the life-saving service we provide.

TV Exposure

We are delighted to be a part of More4's Emergency Helicopter Medics, which aired from the end of May 2022. The powerful series shows our amazing crew in action as they attend critically ill patients across both Essex and Hertfordshire. Viewers will see how our Critical Care teams, along with other air ambulances from around the UK, bring hospital-level care to patients suffering from life-threatening injuries and illnesses.

Later in the year, we will also feature in a popular TV cookery show – the programme was filmed at our North Weald airbase to thank EHAAT aircrew and team members from the College of Paramedics for their work during the pandemic. The College of Paramedics is the recognised professional body for all paramedics in the UK, whose role is to promote and develop the paramedic profession across England, Northern Ireland, Scotland and Wales.

Both opportunities will give us great exposure and enable us to showcase the work that we do to a wider audience.

Reporting – PowerBI

In order to improve reporting across many areas, including regular giving and retail, we are looking to introduce Power BI, which is an interactive data visualisation software product developed by Microsoft with a primary focus on business intelligence. We plan to create a data-driven culture across our organisation by introducing Power BI.

Steve Dukes Sports Auction

In May 2021, Steve Dukes, Head of Equipment for Tottenham Hotspur Football Club, auctioned sports memorabilia, including signed football shirts, in memory of his late father, Charlie Dukes. Steve raised over £44,000 for the Charity whilst helping to generate local and national press coverage. Steve is set to run a follow-up auction in 2022 to boost awareness of the Charity and raise crucial funds.

Corporate Fundraising Manager

As we emerge from a post-COVID world, we remain focused on growing and diversifying our fundraising income. To support our ambitions, we are seeking a Corporate Fundraising Manager. The successful candidate will be responsible for maintaining a robust pipeline of new corporate fundraising opportunities and managing a portfolio of existing corporate supporters.

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ESSEX & HERTS AIR AMBULANCE TRUST (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Restructured Communications Team

In order to help deliver the marketing support needed to achieve our ambitions for 2022/23, we plan to restructure our Communications Team. A Campaign and Design Manager will take responsibility for managing all campaigns across the Charity, from income generation through to clinical and HR. A new Fundraising and Marketing Administrator post will provide support across many areas, including corporate fundraising, events, regular giving, CRM and marketing. With a growing team, we've restructured our communications department to build in-house capacity whilst utilising specialist external agencies and freelancers to enhance creativity, also allowing us to be both flexible and reactive whilst being cost efficient.

f) Development of Key Partnerships and Relationships

The strengthening of communication and relationships within the air ambulance community brought about by the pandemic have remained. We continue to work especially closely with our neighbouring air ambulances, including EAAA, MAGPAS Air Ambulance, London's Air Ambulance and Air Ambulance Kent Surrey Sussex together with EEAST, sharing knowledge and operating practices throughout the pandemic.

We are also actively participating in a number of pre-hospital research networks, including the Pre-Hospital Trainee Operated Research Network (PHOTON), the National HEMS Research & Audit Forum (NHRAF), the regional HEMS Research Network (EHAAT, EAAA and Magpas) and the East of England Ambulance Service NHS Trust Regional Research and Audit Development Group.

We have worked together with our with colleagues at Anglia Ruskin University, our neighbouring Air Ambulance EAAA together with EEAST on a bid for funding from the NIHR Research for Patient Benefit Programme for an exploratory study and development of recommendations for best practice in relation to pre-hospital care for traumatic brain injury.

g) Principal Risks and Uncertainties

The Trust operates a bespoke risk management software system. The Trustees have a risk management approach that comprises:

• An ongoing review of the risks the Charity may face, with risks being entered onto a risk register. The Executive Team reviews risk every month. The register is discussed at least twice a year at board meetings and at every Audit & Risk Committee meeting.

• The establishment of systems and procedures to mitigate those risks

• The implementation of procedures designed to minimise any potential impact on the Trust should those risks materialise

• Use of a risk management system for all clinical occurrences, reviewed by the Clinical Risk and Safety Committee.

The Trustees consider that the most significant risks to the Charity are the financial impacts of a sustained period of high inflation, financial and operational risks associated with a cyber-attack and reputational risk due to adverse publicity against the Charity or charity sector in general impacting our ability to raise funds.

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ESSEX & HERTS AIR AMBULANCE TRUST (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Trustees’ Responsibilities in Relation to the Financial Statements

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

Company law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and the group and of their incoming resources and application of resources, including the income and expenditure, of the charitable company and the group for that period.

In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently

• observe the methods and principles in the Charities Statement of Recommended Practice (SORP)

• make judgements and estimates that are reasonable and prudent

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company and the group will continue in operation

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and the group and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the Trust’s constitution. They are also responsible for safeguarding the assets of the Trust and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In accordance with company law, as the Charity’s trustees, we certify that:

• So far as we are aware, there is no relevant audit information of which the Trust’s auditors are unaware

• • As the Trustees of the Charity we have taken all the steps that we ought to have taken in order to make ourselves aware of any relevant audit information and to establish that the charity’s auditors are aware of the information

Auditors

A resolution will be considered to reappoint Crowe UK LLP as auditors to the Trust for the ensuing year.

Approved by order of the members of the board of Trustees on and signed on their behalf by:

Jonathan Trower

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ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ESSEX & HERTS AIR AMBULANCE TRUST

Opinion

We have audited the financial statements of Essex & Herts Air Ambulance Trust (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2022 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of 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 our opinion the financial statements:

• give a true and fair view of the state of the Group's and of the parent charitable company's affairs as at 31 March 2022 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' 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 Group's or the parent 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.

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

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ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ESSEX & HERTS AIR AMBULANCE TRUST (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. 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. 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 course of 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.

Opinion on other matters prescribed by the Companies Act 2006

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

• the information given in the Trustees' Report including the Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

• the Trustees' Report and the Strategic Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report including the Strategic Report.

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

• the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent charitable company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of Trustees' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, 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 Group's and the parent 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 Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

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ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ESSEX & HERTS AIR AMBULANCE TRUST (CONTINUED)

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the 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, Charities Act 2011 and SORP 2015.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management. Our audit procedures to respond to these risks included:

• enquiry of management about the Group’s policies, procedures and related controls regarding compliance with laws and regulations and if there are any known instances of non-compliance;

• examining supporting documents for all material balances, transactions and disclosures;

• review of the board meeting minutes;

• enquiry of management and review and inspection of relevant correspondence;

• evaluation of the selection and application of accounting policies related to subjective measurements and complex transactions;

• analytical procedures to identify any unusual or unexpected relationships;

• testing the appropriateness of journal entries recorded in the general ledger and other adjustments made in the preparation of the financial statements; and

• review of accounting estimates for biases.

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. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

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.

Page 25

ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ESSEX & HERTS AIR AMBULANCE TRUST (CONTINUED)

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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Ian Weekes (Senior statutory auditor)

for and on behalf of Crowe U.K. LLP

Statutory Auditor Riverside House 40 - 46 High Street Maidstone

Kent ME14 1JH

Date:

Page 26

ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022

Note Income from: Donations and legacies 4 Charitable activities 5 Other trading activities 6 Investments 7 Total income Expenditure on: Raising funds Charitable activities Total expenditure Operating Surplus Net gains on investments Net (expenditure)/income Transfers between funds 18 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward	Restricted funds 2022 £ 38,774 18,353 9,666,594 - 9,723,721 2,672,027 7,205,321 9,877,348 (153,627) - (153,627) (595,324) (748,951) 1,625,083 (748,951) 876,132	Unrestricted funds 2022 £ 4,527,186 87,248 846,253 334,066 5,794,753 2,260,145 - 2,260,145 3,534,608 620,655 4,155,263 595,324 4,750,587 38,791,786 4,750,587 43,542,373	Total funds 2022 £ 4,565,960 105,601 10,512,847 334,066 15,518,474 4,932,172 7,205,321 12,137,493 3,380,981 620,655 4,001,636 - 4,001,636 40,416,869 4,001,636 44,418,505	Total funds 2021 £ 5,007,062 1,873,668 10,389,482 237,568
				17,507,780
				3,967,975 7,361,639
				11,329,614
				6,178,166 1,813,544
				7,991,710 -
				7,991,710
				32,425,159 7,991,710
				40,416,869

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 31 to 54 form part of these financial statements.

Page 27

ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee) REGISTERED NUMBER: 05397840

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2022

Note Fixed assets Intangible assets 12 Tangible assets 13 Investments 14 Current assets Stocks 15 Debtors 16 Cash at bank and in hand Creditors: amounts falling due within one year 17 Net current assets Total net assets Charity funds Restricted funds 18 Unrestricted funds 18 Total funds	29,727 1,093,407 2,728,805 3,851,939 (2,400,528)	2022 £ 11,734 11,026,987 31,928,373 42,967,094 1,451,411 44,418,505 876,132 43,542,373 44,418,505	35,302 1,448,790 3,271,695 4,755,787 (1,599,684)	2021 £ 24,547 10,987,649 26,248,570
				37,260,766 3,156,103
				40,416,869
				1,625,083 38,791,786
				40,416,869

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees on and signed on their behalf by:

Jonathan Trower

The notes on pages 31 to 54 form part of these financial statements.

Page 28

ESSEX & HERTS AIR AMBULANCE TRUST (A company limited by guarantee) REGISTERED NUMBER: 05397840

COMPANY BALANCE SHEET AS AT 31 MARCH 2022

Note Fixed assets Intangible assets 12 Tangible assets 13 Investments 14 Current assets Stocks 15 Debtors 16 Cash at bank and in hand Creditors: amounts falling due within one year 17 Net current assets Total net assets Charity funds Restricted funds 18 Unrestricted funds 18 Total funds	29,727 2,308,755 1,142,255 3,480,737 (2,029,330)	2022 £ 11,734 11,026,987 31,928,377 42,967,098 1,451,407 44,418,505 876,132 43,542,373 44,418,505	35,302 3,214,627 986,111 4,236,040 (1,079,945)	2021 £ 24,547 10,987,649 26,248,574
				37,260,770 3,156,095
				40,416,865
				1,625,083 38,791,782
				40,416,865

The Company's net movement in funds for the year was £ 4,001,640 (2021 - £7,991,707) .

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees on _______ and signed on their behalf by:

Jonathan Trower

The notes on pages 31 to 54 form part of these financial statements.

Page 29

ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022

Cash flows from operating activities Net cash generated in operating activities Cash flows from investing activities Dividends, interests and rents from investments Proceeds from the sale of tangible fixed assets Purchase of tangible and intangible assets Proceeds from sale of investments Purchase of investments Net cash used in investing activities Cash flows from financing activities Net cash provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year	2022 £ 4,795,849 334,066 19,000 (798,678) 6,924,395 (11,817,522) (5,338,739) - (542,890) 3,271,695 2,728,805	2021 £ 5,418,023 237,568 8,816 (4,344,556) 3,897,552 (8,955,172) (9,155,792) - (3,737,769) 7,009,464 3,271,695

The notes on pages 31 to 54 form part of these financial statements

Page 30

ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. General information

Essex and Herts Air Ambulance Trust is a company limited by guarantee (registered number 05397840) which is incorporated and domiciled in England. It is also registered as a charity with the Charity Commission (registered number 1108989). The address of the registered office is The Business Centre, Earls Colne Business Park, Earls Colne Colchester, Essex, CO6 2NS.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Essex & Herts Air Ambulance Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the impact of Covid 19 by assessing the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the Charity to be able to continue as a going concern.

The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.

Page 31

ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

2. Accounting policies (continued)

2.2 Income

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the Charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or fulfillment of those conditions is within the control of the Charity and it is probable that they will be fulfilled.

Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the Charity has control over the item. Fair value is determined on the basis of the value of the gift to the Charity. For example, the amount the Charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Trustees' Annual Report.

Legacy gifts are recognised on a case by case basis following the granting of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset being transferred to the charity. Reversionary legacies are not recognised during the lifetime of the original beneficiary under the will.

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred. Goods donated for resale are included in the accounts when the items are sold.

The Charity receives grants in respect of furthering its charitable activities. Income from grants is recognised at fair value when the Charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Investment income is earned through holding assets for investment purposes such as shares. It includes dividends and interest. Dividend income is recognised as the charity's right to receive payment is established.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the bank.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Page 32

ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

2. Accounting policies (continued)

2.3 Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount can be measured reliably. It is categorised under the following headings:

• Costs of raising funds includes costs incurred seeking voluntary contributions through donations, costs of trading activities and the running of fundraising events during the reporting period; and

• Expenditure on charitable activities includes all costs incurred on furthering the objects of the Charity.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

Support costs are those that assist the work of the Charity but do not directly represent charitable activities and include office costs, governance costs and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the Charity and include project management carried out at Headquarters. Salary costs are attributed to projects based on direct salary costs. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with the use of the resources. All costs were allocated on the basis of staff time, with the exception of property costs which were allocated by areas used.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and Governance costs are costs incurred on the company's operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.4 Government grants

Grants are credited to the Consolidated statement of financial activities as the related expenditure is incurred.

2.5 Taxation

The company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

Page 33

ESSEX & HERTS AIR AMBULANCE TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

2. Accounting policies (continued)

2.6 Intangible assets and amortisation

Intangible assets costing £3,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life.

Amortisation is provided on the following basis:

Computer software - 25 % straight line

2.7 Tangible fixed assets and depreciation

Tangible fixed assets costing £3,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

Short-term leasehold property	- Straight line over the length of the lease
Helicopter	- 20 years straight line
Motor vehicles	- 2-4 years straight line
Fixtures and fittings and	- 2-4 years straight line
computer equipment
Clinical equipment	- 3-4 years straight line

2.8 Investments

The investments held by the charity are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value using the quoted market price. All gains and losses are taken to the Statement of Financial Activities as they arise.

The statement of financial activities includes the net gains and losses on revaluation and disposals throughout the year.

Current asset investments are short term deposits and are held at face value. These include cash on deposit and cash equivalents with a maturity of less than one year.

Investments in subsidiaries are valued at cost less provision for impairment.

Page 34

ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

2. Accounting policies (continued)

2.9 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

2.10 Debtors

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

2.11 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.12 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation.

2.13 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

2.14 Operating leases

Rentals paid under operating leases are charged to the Consolidated statement of financial activities on a straight line basis over the lease term.

2.15 Pensions

The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.

Page 35

ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

2. Accounting policies (continued)

2.16 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

3. Critical accounting estimates and areas of judgment

The following judgements (apart from those involving estimates) have been made in the process of applying the following accounting policies that have had a significant effect on amounts recognised in the financial statements:

Critical accounting estimates and assumptions:

• Depreciation rates for tangible fixed assets

• Residual value and useful life of helicopter

Critical areas of judgment:

• Income recognition of legacies and grants

Page 36

ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

4. Income from donations and legacies

Donations Legacies In-memoria Collection Tins Donated services Donations Legacies In-memoria Collection Tins Donated services	Restricted funds 2022 Unrestricted funds 2022 £ £ 38,774 1,329,480 - 2,325,985 - 310,111 - 88,930 - 472,680 38,774 4,527,186 Restricted funds 2021 Unrestricted funds 2021 £ £ 154,122 1,043,571 - 2,978,478 - 327,516 - 42,839 - 460,536 154,122 4,852,940	Total funds 2022 £ 1,368,254 2,325,985 310,111 88,930 472,680
		4,565,960
		Total funds 2021 £ 1,197,693 2,978,478 327,516 42,839 460,536
		5,007,062

5. Income from charitable activities

	Restricted	Unrestricted	Total
	funds	funds	funds
	2022	2022	2022
	£	£	£
Grant-making trusts	18,353	87,248	105,601

Page 37

ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

5. Income from charitable activities (continued)

	Restricted	Unrestricted	Total
	funds	funds	funds
	2021	2021	2021
	£	£	£
Grant-making trusts	1,611,509	262,159	1,873,668

6. Income from other trading activities

Income from non charitable trading activities

Income from lottery Fundraising events Merchandise sales Charity shop income Income from lottery Fundraising events Merchandise sales Charity shop income Other	Restricted funds 2022 Unrestricted funds 2022 £ £ 9,666,594 - - 122,150 - 14,332 - 709,771 9,666,594 846,253 Restricted funds 2021 Unrestricted funds 2021 £ £ 10,086,752 - - 30,281 - 11,909 - 228,923 - 31,617 10,086,752 302,730	Total funds 2022 £ 9,666,594 122,150 14,332 709,771
		10,512,847
		Total funds 2021 £ 10,086,752 30,281 11,909 228,923 31,617
		10,389,482

Page 38

ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

7. Investment income

Unrestricted funds 2022 £ Dividends 334,066 Unrestricted funds 2021 £ Dividends 229,828 Interest 7,740 237,568	Total funds 2022 £ 334,066
	Total funds 2021 £ 229,828 7,740
	237,568

8. Analysis of expenditure by activities

Helicopter Emergency Medical Service Helicopter Emergency Medical Service	Activities undertaken directly 2022 £ 6,506,181 Activities undertaken directly 2021 £ 6,658,936	Support costs 2022 £ 699,140 Support costs 2021 £ 702,703	Total funds 2022 £ 7,205,321
			Total funds 2021 £ 7,361,639

Page 39

ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

8. Analysis of expenditure by activities (continued)

Analysis of direct costs

Depreciation Helicopter and Rapid Response Vehicle Clinical costs Airbase premises costs Total 2022	Total funds 2022 £ 702,809 2,852,196 2,576,636 374,540 6,506,181	Total funds 2021 £ 502,303 3,437,126 2,395,538 323,969
		6,658,936

Analysis of support costs

Staff costs Operations and support costs Other employment costs Governance costs	Total funds 2022 £ 531,900 96,998 53,470 16,772 699,140	Total funds 2021 £ 545,551 72,670 55,485 28,997
		702,703

9. Governance costs

	2022	2021
	£	£
Auditors' remuneration	28,500	28,850
Trustees meetings	2,147	-
Trustee indemnity insurance	1,962	3,237
Legal, consultancy and other fees	(768)	18,870

Page 40

ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

10. Staff costs

Wages and salaries Social security costs Contribution to defined contribution pension schemes	Group 2022 £ 1,789,694 172,764 110,508 2,072,966	Group 2021 £ 1,806,604 170,211 112,212 2,089,027	Company 2022 £ 1,789,694 172,764 110,508 2,072,966	Company 2021 £ 1,806,604 170,211 112,212
				2,089,027

The average number of persons employed by the Company during the year was as follows:

Charitable activities Raising funds Lottery Retail	Group 2022 No. 8 28 3 25 64	Group 2021 No. 9 32 3 27
		71

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

	Group	Group
	2022	2021
	No.	No.
In the band £60,001 - £70,000	-	1
In the band £80,001 - £90,000	-	1
In the band £90,001 - £100,000	1	-
In the band £120,001 - £130,000	1	1

The total amount of employee benefits received by key management personnel is £459,294 (2021 - £477,370). This includes bonus amounts earned but not yet paid. The charity considers its key management personnel to be the Trustees and the Executive Team as listed in the charity information page.

There was an amount due at the year end to one member of Key Management Personnel of £17,500 (2021 - £15,000).

Page 41

ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

11. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL) .

During the year ended 31 March 2022, no Trustee expenses have been incurred (2021 - £NIL) .

12. Intangible assets Group and Company Cost At 1 April 2021 At 31 March 2022 Amortisation At 1 April 2021 Charge for the year At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021	Computer software £ 115,893
	115,893
	91,346 12,813
	104,159
	11,734
	24,547

Page 42

ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

13. Tangible fixed assets

Group and Company

Cost or valuation At 1 April 2021 Additions Disposals At 31 March 2022 Depreciation At 1 April 2021 Charge for the year On disposals At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021	Long-term leasehold property £ 5,274,300 295,669 - 5,569,969 334,702 258,985 - 593,687 4,976,282 4,939,598	Plant and machinery £ 6,987,321 67,993 - 7,055,314 1,276,976 350,348 - 1,627,324 5,427,990 5,710,345	Motor vehicles £ 318,428 150,736 (35,896) 433,268 286,997 43,193 (35,896) 294,294 138,974 31,431	Fixtures and fittings £ 322,223 135,913 - 458,136 171,389 28,856 - 200,245 257,891 150,834	Other fixed assets £ 502,426 148,367 - 650,793 346,985 77,958 - 424,943 225,850 155,441	Total £ 13,404,698 798,678 (35,896) 14,167,480 2,417,049 759,340 (35,896) 3,140,493 11,026,987 10,987,649

Page 43

ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

14. Fixed asset investments

Group Cost or valuation At 1 April 2021 Additions Disposals Revaluations Dividends retained Foreign exchange movement At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021	Listed investments £ 26,248,570 11,888,748 (7,255,717) 786,682 335,002 (74,912) 31,928,373 31,928,373 26,248,570

Page 44

ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

14. Fixed asset investments (continued)

Company Cost or valuation At 1 April 2021 Additions Disposals Revaluations Dividends retained Foreign exchange movement At 31 March 2022 Net book value At 31 March 2022 At 31 March 2021 15. Stocks Group 2022 £ Finished goods and goods for resale 29,727	Investments in subsidiary companies £ 4 - - - - - 4 4 4 Group 2021 £ 35,302	Listed investments £ 26,248,570 11,888,748 (7,255,717) 786,682 335,002 (74,912) 31,928,373 31,928,373 26,248,570 Company 2022 £ 29,727	Total £ 26,248,574 11,888,748 (7,255,717) 786,682 335,002 (74,912) 31,928,377 31,928,377 26,248,574 Company 2021 £ 35,302

Page 45

ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

16. Debtors

Due within one year Trade debtors Amounts owed by group undertakings Other debtors Prepayments and accrued income Tax recoverable Legacy Debtor	Group 2022 £ 8,290 - 694 341,367 115,410 627,646 1,093,407	Group 2021 £ 2,672 - 4,870 440,522 95,902 904,824 1,448,790	Company 2022 £ 8,290 1,246,568 460 310,381 115,410 627,646 2,308,755	Company 2021 £ 2,588 1,815,209 4,560 391,544 95,902 904,824
				3,214,627

17. Creditors: Amounts falling due within one year

Trade creditors Amounts owed to group undertakings Other taxation and social security Other creditors Accruals and deferred income Deferred income at 1 April 2021 Resources deferred during the year Amounts released from previous periods	Group 2022 £ 357,446 - 48,516 538,209 1,456,357 2,400,528	Group 2021 £ 178,474 - 42,453 501,374 877,383 1,599,684	Company 2022 £ 344,008 213,398 48,516 2,879 1,420,529 2,029,330 Group 2022 £ 479,095 506,836 (479,095) 506,836	Company 2021 £ 178,474 - 42,454 4,131 854,886
				1,079,945
				Group 2021 £ 682,073 479,095 (682,073)
				479,095

Page 46

ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

18. Statement of funds

Statement of funds - current year

Unrestricted funds Designated funds Fixed asset fund Helicopter fund Centre of excellence General funds General Funds - all funds Total Unrestricted funds Restricted funds Restricted Fund Total of funds	Balance at 1 April 2021 £ 11,012,200 - - 11,012,200 27,779,586 38,791,786 1,625,083 40,416,869	Income £ - - - - 5,794,753 5,794,753 9,723,721 15,518,474	Expenditure £ (772,153) - - (772,153) (1,487,992) (2,260,145) (9,877,348) (12,137,493)	Transfers in/out £ 798,674 7,200,000 1,000,000 8,998,674 (8,403,350) 595,324 (595,324) -	Gains/ (Losses) £ - - - - 620,655 620,655 - 620,655	Balance at 31 March 2022 £ 11,038,721 7,200,000 1,000,000
						19,238,721
						24,303,652
						43,542,373
						876,132
						44,418,505

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ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

18. Statement of funds (continued)

The designated funds for the new helicopter are the anticipated costs of purchasing the new helicopter. £1m has been designated for expenditure on our Centre for Excellence initiative .

Of the restricted funds, £864,054 (2021 - Critical Care of £1,625,083) represent the funds received from Essex Herts Flight For Life Lottery Operations Limited that are to be spent on operations (2021 - critical care) within the Trust.

The remaining restricted funds relate to various unspent grants with restrictions applied from the donor.

EHAAT operates in a high-risk environment using cutting edge procedures and technologies in order to move and act fast to save lives. Without regular and continued support our service simply could not run. As part of a plan to commit to the long term sustainability of the charity, the Trustees are seeking to create an Expendable Endowment Fund in order to make the most of excess income when it is achieved. This is with the intention the fund will be separately invested for the long term to deliver a stream of investment income to support our services for generations to come.

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ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

18. Statement of funds (continued) Statement of funds - prior year

Unrestricted funds Designated funds Fixed asset fund North Weald development Earls Colne development General funds General Funds Total Unrestricted funds Restricted funds Restricted Fund Total of funds	Balance at 1 April 2020 £ 7,205,552 3,730,991 325,000 11,261,543 20,561,206 31,822,749 602,410 32,425,159	Income £ - - - - 5,655,397 5,655,397 11,852,383 17,507,780	Expenditure £ (573,021) - - (573,021) (1,582,179) (2,155,200) (9,174,414) (11,329,614)	Transfers in/out £ 4,379,669 (3,730,991) (325,000) 323,678 1,331,618 1,655,296 (1,655,296) -	Gains/ (Losses) £ - - - - 1,813,544 1,813,544 - 1,813,544	Balance at 31 March 2021 £ 11,012,200 - -
						11,012,200
						27,779,586
						38,791,786
						1,625,083
						40,416,869

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ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

19. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets Intangible fixed assets Fixed asset investments Current assets Creditors due within one year Total Analysis of net assets between funds - prior year Tangible fixed assets Intangible fixed assets Fixed asset investments Current assets Creditors due within one year Total	Restricted funds 2022 Unrestricted funds 2022 £ £ - 11,026,987 - 11,734 - 31,928,373 876,132 2,975,807 - (2,400,528) 876,132 43,542,373 Restricted funds 2021 Unrestricted funds 2021 £ £ - 10,987,649 - 24,547 - 26,248,570 1,625,083 3,130,704 - (1,599,684) 1,625,083 38,791,786	Total funds 2022 £ 11,026,987 11,734 31,928,373 3,851,939 (2,400,528) 44,418,505 Total funds 2021 £ 10,987,649 24,547 26,248,570 4,755,787 (1,599,684) 40,416,869

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ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

20. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities) Adjustments for: Depreciation and amortisation charges Losses/(gains) on investments Dividends, interests and rents from investments Loss/(profit) on the sale of fixed assets Decrease/(increase) in stocks Decrease/(increase) in debtors Increase/(decrease) in creditors Net cash provided by operating activities 21. Analysis of cash and cash equivalents Cash in hand Total cash and cash equivalents 22. Analysis of changes in net debt At 1 April 2021 £ Cash at bank and in hand 3,271,695 3,271,695	Group 2022 £ 4,001,636 772,153 (786,682) (334,066) (19,000) 5,575 355,383 800,850 4,795,849 Group 2022 £ 2,728,805 2,728,805 Cash flows £ (542,890) (542,890)	Group 2021 £ 7,991,710 573,021 (1,932,579) (237,568) (3,134) (4,054) (432,375) (536,998) 5,418,023 Group 2021 £ 3,271,695 3,271,695 At 31 March 2022 £ 2,728,805 2,728,805

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ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

23. Capital commitments

	Group	Group	Company	Company
	2022	2021	2022	2021
	£	£	£	£
Contracted for but not provided in these
financial statements
Acquisition of tangible fixed assets	-	291,140	-	291,140

24. Pension commitments

The group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £110,508 (2021 - £112,473). Contributions totalling £2,792 (2021 - £63) were payable to the fund at the balance sheet date and are included in creditors

25. Operating lease commitments

At 31 March 2022 the Group and the Company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Land and buildings Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years	Group 2022 £ 353,619 1,139,306 3,379,516 4,872,441	Group 2021 £ 386,280 1,473,058 1,925,156 3,784,494	Company 2022 £ 353,619 1,139,306 3,379,516 4,872,441	Company 2021 £ 386,280 1,473,058 1,925,156
				3,784,494

The following lease payments have been recognised as an expense in the Statement of financial activities:

	Company	Company
	2022	2021
	£	£
Land and building lease costs	373,869	382,642
Helicopter lease costs	1,970,306	2,698,629

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ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

26. Related party transactions

Information about related party transactions and outstanding balances is outlined below:

D Hayward is a Trustee of the Charity and is also a partner in a firm of solicitors, Nockolds. During the year the Charity purchased legal services from Nockolds, amounting to £15,167 including VAT (2021 - £23,774). There was £12,627 outstanding at the year end (2021 - £nil).

Other than the above and the transactions identified within Note 10, there have been no other related party transactions.

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ESSEX & HERTS AIR AMBULANCE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

27. Principal subsidiaries

The following were subsidiary undertakings of the Company:

Names	Company	Registered office or principal	Class of	Holding	Included in
	number	place of business	shares		consolidation
Essex and Herts Flight For Life Lottery Limited	04269794	Same as parent company - see	Ordinary	100%	Yes
		company information page
Essex & Herts Air Ambulance Trading Limited	03739217	Same as parent company	Ordinary	100%	Yes
*Essex & Herts Flight For Life Lottery Operations Limited	11995048	Same as parent company	Ordinary	100%	Yes
*Essex & Herts Flight For Life Lottery Critical Care Limited	11995133	Same as parent company	Ordinary	100%	Yes

The financial results of the subsidiaries for the year were:

Names	Income	Expenditure	Profit/(Loss)	Net assets
	£	£	for the year	£
			£
Essex and Herts Flight For Life Lottery Limited	4	-	4	2
Essex & Herts Air Ambulance Trading Limited	28,238	11,301	16,937	2
*Essex & Herts Flight For Life Lottery Operations Limited	7,300,819	1,157,930	6,142,889	2
*Essex & Herts Flight For Life Lottery Critical Care Limited	2,365,774	792,115	1,573,659	2

*indirect subsidiaries

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