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2020-09-30-accounts

ANNUAL REPORT 201912020 HIILPfor HEROES Companynumber". 6363256 SUPPORT FOR OUR WOUNDED

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NO MATTER
WHEN OR WHERE
SOMEONE
SERVED [,] WE
BELIEVE ANYONE
AFFECTED BY
MILITARY SERVICE
DESERVES
A FAIR DEAL
AFTERWARDS.
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CONTENTS

2

3

Message from Message from our Chairman our CEO

HOW WE DELIVER ON OUR PROMISE

7

Our Recovery Services

12

Recovery in Numbers

18 Championing the Wounded

24

Funding the Cause

26 Trading

OUR RESPONSIBILITY

33

35

Our Structure, Legal and Governance and Administrative Management Details

36 Policies and Disclosures

44 Financial Review

45 Statement of Trustees’ Responsibilities

FINANCIAL STATEMENTS AND AUDITOR’S REPORT

47

Auditor’s Report

49

Financial Statements

52 Notes to the Financial Statements

72

Thank You

HELPFORHEROES.ORG.UK 1

MESSAGE FROM OUR CHAIRMAN

When Help for Heroes was founded in 2007, we made a promise to be here for our wounded and their families, for life. And I am proud to be able to say that more than 13 years later, we have transformed the lives of more than 26,500 men and women.

Our cause is one I hold close to my own heart and it was a privilege to be elected Chairman in 2020. I would firstly like to thank all our Trustees for their support and guidance since my arrival. I would especially like to mention Sir Philip Trousdell and Veronica Hope-Hailey, both of whom stepped up to be Chairs at short notice; and Rod Dunn, David Hook, Tony Schofield, Robert Watsham and Tom Wright who left the Board with an impressive combined service of more than 30 years.

We know 2020 was a difficult year for so many charities and Help for Heroes is no exception. The worldwide pandemic has provided us with many challenges and obstacles to overcome, and we had to make decisions which although extremely difficult, were necessary to ensure we could keep our promise to our wounded and their loved ones.

During this financial year, we supported 2,779 individuals and I was incredibly proud with how quickly we adapted our services to ensure our world class support was still available during the height of the pandemic. It has been difficult to weather this storm, but our outstanding Leadership Team has not only managed to do this, but also strategise for the future to ensure the Charity continues making huge strides in its ability to make a difference for our veterans.

Looking ahead, our short-term focus will be on rebuilding lost income and conserving expenditure following the significant impact of Covid-19. In the

longer-term, focus will be on continuing to evolve, alongside others in the sector, to meet the changing needs of our heroes and their families.

Progress is already being made with our added emphasis this year on the delivery of community-led and digitally-based recovery services, as we try to reach as many veterans as possible in a more cost-effective way. This will remain a priority for us in 2021-22, increasing our ability to offer services remotely and in the community. We will continue to review our strategic direction, being ambitious and innovative in meeting the needs of veterans and their families now and in the future, as well as investing strategically to ensure we can keep our promise for years to come.

I would like to take this opportunity to thank not only the Help for Heroes staff, who demonstrate a relentless commitment to delivering first class recovery services to our veterans, but also our supporters, who walked the difficult path of 2020 alongside us every step of the way. We will continue to need their support more than ever in 2021, as we continue our mission to give back to the heroes who have given so much for us.

In 2007, our co-founders Bryn Parry OBE and Emma Parry OBE created a truly magnificent organisation, which has changed the public’s perception of the sacrifices our Armed Forces make on our behalf, and of the duty we owe to those who suffer so that we can lead our lives in peace. As these heroes move through their lives, their needs do not diminish, and nor should our gratitude to them. I am determined that Help for Heroes keeps the promise Bryn and Emma made on behalf of all of us and that our wounded continue to receive the support they both need and deserve.

Nigel Boardman, Chair of Trustees

“ During this financial year, we supported 2,779 individuals and I was incredibly proud with how quickly we adapted our services to ensure our world class support was still available during the height of the pandemic.”

2 CHAIRMAN’S FOREWORD

MESSAGE FROM OUR CEO

When I cast my mind back to the beginning of this financial year, we had much to be positive about. Our mission is to give our nation’s heroes one less battle to fight and to enable them to live secure and healthy lives with purpose, and we were focused on delivering against three priorities; Reshaping Recovery, Championing the Wounded and Funding the Cause. We were working hard to simplify and join up our range of recovery services and were particularly excited to be planning the launch of our unique Recovery College in September 2020.

When the pandemic arrived we, like charities the world over, had to rapidly adapt. Our immediate priority was of course to support our wounded and their families, many of whom felt the impact of the first lockdown almost immediately. Loneliness, low mood and anxiety are all common issues faced by those we support, and with all of these heightened, we saw a 33 per cent increase in the number coming to us for mental health support between April and September.

With our recovery centres closed, our team worked tirelessly and in difficult circumstances to keep our wounded, and their loved ones, feeling safe and connected during unusual times. I have always been proud of the resilience and work ethic of our Help for Heroes team, and it was thanks to their dedication that we were able to adapt quickly and begin delivering all mental health support over the phone, provide virtual health coaching facilities and arrange virtual meet ups to help those feeling alone or struggling with a lack of routine. I cannot thank them enough for the way in which they selflessly rallied in support of our wounded veterans and their families.

For our most seriously injured veterans, our Clinical Team continued

to deliver vital face-to-face support in the home where they could, and at the War Injuries Clinic at Salisbury Hospital in Wiltshire. And we were also able to make our grants application process shorter and simpler to help support urgent cases of financial need resulting from the coronavirus crisis.

None of these timely adaptations to our services in the face of a crisis would have been possible without the enduring support of the Great British Public, upon whom we rely heavily for our income. With nearly all our planned face-to-face fundraising activities and events since April 2020 either cancelled or postponed, our income in this financial year has fallen significantly. But our dedicated fundraisers, undeterred, continued to show their incredible support in other ways – signing up to take part in some of our virtual fundraising events and responding so kindly to our urgent cash appeal in May. We know this was a tough year for everyone, and we remain humbled by their efforts to join us in making a difference to the lives of our wounded veterans and their families.

In planning for the future, we will continually adapt our services to best meet the needs of our wounded. Our methods may have changed but our purpose hasn’t and we remain focussed on our mission. The launch of our Recovery College, the first of its kind developed specifically to meet the recovery needs of veterans and their families, didn’t quite go ahead as planned in September, but we were able to develop and launch a series of online self-help guides to recovery as a gateway to its full launch in 2021.

It was always our ambition to blend the way we deliver our recovery services, using different approaches to reach more wounded veterans around the UK. We were already

focussed on delivering more face-toface support in the community, as well as increasing digital access to our services. The pandemic has provided us with an opportunity to accelerate the need for this change. We will continue on this path, working with community partners to extend our reach to the many more who we know still need our help. We will also continue to champion their cause right to the heart of Government.

Much as it is difficult to predict the future, we know our wounded and their families need us as much as ever, and with the support of the public, our partners, our volunteers and the commitment of our dedicated Help for Heroes team, we will remain agile in order to keep our promise to those we exist to serve.

Melanie Waters OBE, Chief Executive Officer

MESSAGE FROM OUR CEO 3

OUR PROMISE

We exist to give our nation’s heroes one less battle to fight. To enable them to live secure and healthy lives with purpose. We make this promise because it’s what they and their families deserve.

4 OUR PROMISE

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The sections How We
Deliver On Our Promise
and Our Responsibility
form Our Strategic
and Directors’ Report.
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5

OUR PROMISE

HOW WE DELIVER ON OUR PROMISE

6 HOW WE DELIVER ON OUR PROMISE

OUR RECOVERY SERVICES

The events of 2020 mean we have had to adapt the way in which we deliver many of our recovery services, whilst remaining committed to helping those we support to live secure, healthy and purposeful lives.

Our aims for 2019/20 were to:

How we delivered on these aims:

Building our Recovery College

In September 2019 we tested our Recovery College model with a pilot term at our Tedworth House Recovery Centre in Wiltshire.

The first of its kind, our Recovery College has been specifically developed to meet the recovery needs of veterans and their families.

We originally planned to roll out our college model across two of our recovery centres in 2020. But when we closed our centres in March due to the coronavirus pandemic, we started to develop a full and varied online curriculum of courses and launched our digital Recovery College in September. Here, veterans and their families could complete courses in their own homes, regardless of where they lived. Alongside this, we also developed a series of online self-help guides to recovery.

All our Recovery College courses are designed to enable veterans and their families to move forward in their lives with confidence and to help develop the knowledge and skills they need to manage their own physical and mental wellbeing. They have been co-created by our recovery staff and veterans who have first-hand experience of the recovery process.

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RECOVERY COLLEGE:
SELF-HELP GUIDES
TO RECOVERY
SLEEPING
WELL
MOVE FORWARD:
MANAGING
ANXIETY
RECOVERY COLLEGE:
SELF-HELP GUIDES
TO RECOVERY
YOGA FOR
WELLBEING
GETTING
STARTED
MOVE FORWARD:
MOVE FORWARD:
RECOVERY COLLEGE:
SELF-HELP GUIDES
TO RECOVERY
RECOVERY COLLEGE:
SELF-HELP GUIDES
TO RECOVERY
PREPARE:
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7

HOW WE DELIVER ON OUR PROMISE

Developing our psychological wellbeing services

We strive to continually evolve and improve our recovery services, so that we can be confident our wounded and their families receive the very best level of care.

This year, we made some changes to the way we deliver psychological and wellbeing support to veterans and their loved ones, in order to meet this aim.

We adopted a ‘Stepped Care’ model of psychological support which follows guidelines set out by the National Institute for Health and Care Excellence (NICE) and is in line with NHS services that offer the same approach to mental health care. This has enabled better joint working and co-operation between agencies and ensures each veteran’s treatment plan is appropriate for their needs and respectful of their choices, whilst assuring the highest quality of psychological service provision.

We also added to our team of mental health clinicians. The team is made up of Psychologists, Senior Counsellors, Accredited Counsellors and Psychological Wellbeing Practitioners, who work alongside a team of nonclinical staff and who are committed to maintaining the highest quality and consistency of mental health support for our wounded.

This year we also unified our portfolio of psychological wellbeing services under our ‘Hidden Wounds’ name. Previously, our Hidden Wounds service specifically helped those struggling with anxiety, depression, anger and those wishing to change their drinking habits. The term ‘Hidden Wounds’ resonates well with those we support, hence our decision to bring our complete range of

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Our teams are committed to delivering
high quality support to our wounded.
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Expanding our reach in the community

psychological wellbeing services under this name.

Finally, this year we were part of the Quality Network for Veterans’ Mental Health Services (QNVMHS) pilot to achieve accreditation for Veteran’s Mental Health Services in the UK, facilitated by Royal College of Psychiatrists.

Our Clinical Team of nurses have been engaging with NHS and social care providers to identify some of the most significant and on-going needs our wounded face, particularly when it comes to issues with mobility and managing pain. So that we can address these needs, in 2019 we developed a proposal for the creation of a Community Rehabilitation Team and were delighted to receive funding for this from the Headley Court Charity in January 2020.

Meeting the needs of our wounded

In 2020 we introduced Case Management. Designed following the Case Management Society UK’s practices and standards, our approach ensures veterans receive effective support and feel empowered to take control of their own recoveries.

This funding is allowing us to expand our Clinical Team – made up of Veterans’ Community Nurses and Occupational Therapists – and commission physiotherapists, all of which enables us to reach more veterans and their families in the community. Because of the pandemic, it is taking longer than we had originally anticipated to have the full team in place but we hope to have achieved this by the spring of 2021.

Veterans with multiple or complex support needs are now given their own Case Manager who assesses, plans, monitors and evaluates which services will meet their ongoing requirements.

Case Managers encourage and support veterans to achieve independence through coaching, encouraging them to look to their own strengths and build their own ‘box of tools’ to help them react to future challenges.

8 HOW WE DELIVER ON OUR PROMISE

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We have supported more than
20 Very Seriously Injured (VSI) veterans
through our VSI programme.
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Support for our most seriously injured

2020 marked the second year of our Very Seriously Injured (VSI) programme, which aims to provide holistic support and improve the quality of life for those with lifelimiting injuries. Some would call these veterans “unexpected survivors”. Thankfully, their lives were saved due to advances in modern medicine.

Our VSI programme is designed to help VSI veterans regain a sense of self-worth, so they can live a purposeful and meaningful life. It also supports their family members with their mental health and wellbeing.

To date we have supported 20 veterans in this way, enabling access to appropriate support such as speech and language therapy, financial assistance with carer costs and specialist equipment. As we move into the next phase of the programme, we will evaluate our successes and the challenges we have faced. This will shape how we deliver support to our VSI veterans in the future. One of our key aims as we look to the future is to secure additional funding specifically to support our VSI programme.

Grants awarded

During the financial year we received almost 1,300 requests for financial support with welfare needs, of which 62 per cent were accepted for consideration (the remaining 38 per cent were out of scope). 416 unique individuals were supported by grants awarded during the year. Payments totalling £496K were paid to individuals, including those supported through our VSI programme.

At the onset of the pandemic, we made our grants application process shorter

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This year we continued to
deliver support virtually.
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and simpler to help support urgent cases. Where appropriate we worked together with our Confederation of Service Charities (COBSEO) partners, to prioritise needs and ease immediate financial hardship.

Adapting services during Covid-19

When our recovery centres closed in March 2020 due to the pandemic, we were quick to adapt many of our face-to-face support services so that they could be delivered virtually. For our most seriously injured cohort of veterans, we continued to deliver faceto-face support in the home where necessary (following NHS and government guidelines). Our clinicians also continued to provide vital support and reassurance to wounded veterans undergoing life-changing surgical procedures at the War Injuries Clinic at Salisbury Hospital.

At the height of the pandemic we worked with veterans using a technique called ‘health coaching’, whereby we focussed on giving them the knowledge, skills and confidence they needed to become more active guardians of their own care. Evidence shows that health coaching can reduce the number of hospital visits an individual requires and helps them to manage long-term conditions.

As well as launching our virtual Recovery College, we delivered online sleep management support and our Hidden Wounds therapy sessions were successfully delivered by phone and video conference. We also hosted virtual coffee mornings and developed an online sports and physical wellbeing activity schedule, as well as Q&A sessions to motivate and engage veterans and family members.

We also undertook a survey to better understand how the pandemic was

affecting those we support and to understand their priority concerns. You can read more about this on page 18.

The devastating impact of Covid-19 forced us develop cost reduction measures, including reducing the number of staff that work for the Charity, to protect our life-changing services. We furloughed almost 40% of staff for seven months in 2020 and put in place a recruitment freeze. The significant loss of income, coupled with a projected 30% reduction in regular income over the coming years as a result of the pandemic and economic recession, also forced us to significantly review our operating practices and the way we delivered our services. This led to the difficult decision to put 143 roles at risk, of which 89 were made redundant.

Part of our strategic plan was to blend the way we deliver services using different approaches to reach more wounded veterans around the UK and empower them to live secure and healthy lives with purpose. The focus of this was on increasing delivery of face-to-face support in the community, as well as increasing digital access to the Charity’s services. The pandemic accelerated the need for this change and continued COVID restrictions meant that wounded veterans had a great need for support closer to home, in their communities and online. The impact and reach that we saw from this model drove our decision not to operate out of three of our Recovery Centres for the foreseeable future (Catterick, Colchester and Plymouth). We work closely with MoD to ensure that all centres will continue to provide core recovery activities for wounded, injured or sick service personnel.

HOW WE DELIVER ON OUR PROMISE 9

STEPHANIE’S STORY

Lack of sleep can have a huge impact on physical and mental health, and at the height of the pandemic nearly half the veterans we support struggled with sleep issues. Stephanie Shaw was one of them.

“ I already found sleeping difficult. Lockdown made it worse, as there was no escape when my work and home life blended together.”

Medically discharged from the RAF 15 years ago, Stephanie reached out to us during the first lockdown, when the sudden change in routine negatively impacted her ability to switch off at the end of the day.

Serving in Poland in 2002, a serious road traffic accident marked the beginning of the end of Stephanie’s RAF career. The former Air Traffic Control Officer was left with multiple broken bones, internal wounds and a head injury. Following six separate recovery sessions at Headley Court, she was medically discharged in 2005.

When the pandemic hit, sleep became a problem. In need of support, Stephanie reached out to us.

“I already found sleeping difficult. Lockdown made it worse, as there was no escape when my work and home life blended together,” she says.

Referred to our Occupational Therapy Team, Stephanie received remote support using our online sleep course.

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Stephanie reached out for
support during the first lockdown.
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“It was delivered by a wonderful teacher who helped me make sense of the anxieties associated with sleep. I am now sleeping much better as a result - which made lockdown much easier,” Stephanie explains.

of our beneficiaries said the hardest part of lockdown involved difficulty sleeping

“The pandemic has been awful, especially for those suffering with poor mental health. Lack of personal interaction has caused further harm to many whose lives are already fragile. Thank goodness for Help for Heroes who are always on hand to help.”

10 HOW WE DELIVER ON OUR PROMISE

ANTHONY AND SHELLEY’S STORY

Former Kingsman Anthony Cooper’s life changed forever when he was injured by a roadside bomb at the age of 22. He lost both legs above the knee and suffered significant injuries to his brain and hands. At one point he wasn’t expected to survive. Now, he’s defying the odds.

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Anthony with his mum, Shelley.
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Trying out for the Invictus Games.
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“ Without Help for Heroes, I’d be lost. Coming forward for support is probably the best thing you can do. I’m blind and I’ve got a head injury, but the support network through Help for Heroes is the best.”

Anthony was deployed to Afghanistan and in 2010 was on foot patrol in Helmand Province when an Improvised Explosive Device (IED) went off beneath him. He was medically evacuated back to the UK and put in an induced coma. Doctors told his family not to hold out hope and within days, his organs began shutting down.

But, despite losing his right eye in the explosion and suffering the worst brain injury his doctors had seen in 25 years, Anthony pulled through.

As a double amputee with other catastrophic injuries, Anthony faced many obstacles ahead. His family visited him in hospital in Birmingham, then made regular trips to Headley Court where his rehabilitation began. Anthony’s mum Shelley sat with him for weeks, helping him learn how to speak again.

But it wasn’t just his physical injuries he battled with.

“After I was injured, I felt like I was in hell. I attempted suicide maybe four or five times. It was a cry for help. I didn’t know what else to do,” says Anthony.

With our support Anthony, now 32, is discovering that there’s light at the end of the tunnel.

“People were telling me that I can’t do sport because I’m blind, missing limbs, and missing the fingers on one hand. But Help for Heroes really encouraged me, and I even tried out for the 2020 Invictus Games.

“Without Help for Heroes, I’d be lost. Coming forward for support is probably the best thing you can do. I’m blind and I’ve got a head injury, but the support network through Help for Heroes is the best.”

The lockdown mission

During the pandemic, and as the Government issued its ‘Stay at Home’ order, we organised for Anthony to move temporarily from his home in Chorley, Lancashire, to where his mum Shelley lives on the Isle of Lewis, so that he could isolate with his family around him.

A patio area was built in Shelley’s garden out of pallets and a wooden board so he could take his racing wheelchair and rollers outside to train in the fresh air.

Although Anthony and Shelley were grateful to be reunited, the lockdown wasn’t without its struggles, as Anthony missed the independence his specially adapted house afforded him.

“My mental state was deteriorating because I felt even though we did the right thing getting him here to shield, I had taken away his independence,” explains Shelley.

And so we stepped in to give Shelley some extra support herself through our Hidden Wounds service during this difficult time.

In July, once lockdown had lifted and it was deemed safe for him to travel, we helped Anthony get back into his own home. Now, he continues to have regular contact with his Case Manager.

“Wounded veterans like my Anthony may not be fighting wars any more, but they are still fighting. It’s a battle that will continue for the rest of their lives – and it’s a battle they simply mustn’t fight alone,” says Shelley.

“Help for Heroes has always been there for us.”

HOW WE DELIVER ON OUR PROMISE 11

RECOVERY IN NUMBERS

In the financial year:

Nearly 3[,] 000 veterans and their family members came forward for support 2[,] 023 veterans and their families were supported by our Hidden Wounds Team

1[,] 209 veterans and their families were supported by our Welfare Team

1[,] 092 veterans were supported by Our Veterans’ Clinical Service

We supported 2[,] 779

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individuals
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Jan – Mar Apr – Jun
831
665
625
1014
Oct – Dec Jul – Sep
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£496 [,] 000
in grants supporting
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12 HOW WE DELIVER ON OUR PROMISE

We ran online Help for Heroes Choir activities for 63 people...

weekday rehearsals

virtual get togethers

new members joined our Help for Heroes Fellowship programme

There are now

members in our Band of Brothers and Band of Sisters Fellowships

We ran

virtual Fellowship get togethers

for

Band of Brothers and Band of Sisters members

HOW WE DELIVER ON OUR PROMISE 13

We ran an online sports activity schedule for our Invictus Games athletes, delivering two sessions per month, per sport

(Archery, athletics-track, athletics-field, swimming, indoor rowing, powerlifting, sitting volleyball, wheelchair rugby, wheelchair basketball and cycling).

Between January and March 2020, our Recovery College ran two concurrent terms at our Tedworth House Recovery Centre in Wiltshire and our Phoenix House Recovery Centre in Catterick for 42 students, delivering seven courses to equip veterans and their families with a range of skills and tools to self-manage their wellbeing.

After the first lockdown began, seven courses were converted for digital delivery, including What is Recovery?, Preparing to Take Positive Action, Sleeping Well, Managing Anxiety, Setting SMART Goals, Making a Wellness Action Plan and Nutrition. In addition, 10 self-help guides were added to our website.

14 HOW WE DELIVER ON OUR PROMISE

THE POSITIVE IMPACT OF RECOVERY ON VETERANS’ WELLBEING

41% of members of our Band of Brothers/ Band of Sisters Fellowship groups say they felt less isolated.

83% of veterans who engaged with our Health and Physical Wellbeing services say their wellbeing improved.

92% of veterans who engaged with our Sports Recovery services say their wellbeing improved.

of veterans who 68% received assistance from our Grants Team say their wellbeing improved.

75% of veterans who engaged with our Welfare Service reported positive change in one or more areas of their life (finances, housing, activities, physical health, mental health, social life).

Of the veterans who received support with physical health challenges from our Clinical Team:

reported issues with pain 98% and discomfort.

97% asked for help undertaking everyday activities.

reported mobility 91% issues.

90% reported issues with anxiety and depression.

73% asked for help to improve their ability to self-care.

HOW WE DELIVER ON OUR PROMISE 15

Of the veterans who received support with physical health challenges from our Clinical Team:

69% reported improvements in one or more of these areas:

47% reported significant improvements in being able to undertake everyday activities.

39% reported significant improvements in their levels of anxiety or depression.

36% reported significant improvements in their levels of pain or discomfort.

Of the 42 veterans who attended our Recovery College courses in January and February: 93% said doing so had improved their wellbeing.

Of those who accessed support from our Hidden Wounds Team between October 2019 and March 2020, on average:

Depression scores reduced by 24% from 14.52 (moderately severe) to 7.96 (mild).

Anxiety scores decreased by 27%

from 12.86 (moderate) to 7.10 (mild).

Ability to perform day to day tasks improved by 19%

Anger symptom scores reduced by 27%

from 26.55 (moderate acuity) to 19.68 (low acuity).

from 19.93 (moderately severe to severe functional impairment) to 12.15 (mild-to-moderate impairment in functioning).

16 HOW WE DELIVER ON OUR PROMISE

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During the lockdowns we delivered many of our services virtually.
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Our community reach

activities delivered by our Sports Recovery, Fellowship and Health and Physical Wellbeing teams

With a focus on delivering more activities in the community, the first six months of the financial year saw 793 face-to-face activities delivered by our Sports Recovery, Fellowship and Health and Physical Wellbeing teams.

Our aims for 2020/21:

Of these, almost 50 per cent (386 activities in total) were run in the community.

This marks a 26 per cent rise in the number of community-based activities we ran compared to the previous financial year – in which 665 activities were delivered, 306 in the community.

HOW WE DELIVER ON OUR PROMISE 17

CHAMPIONING THE WOUNDED

We use our voice to be bold and strong in championing the needs of our wounded and their families, to accelerate change and give them the futures they deserve.

Our aims for 2019/20 were to:

How we delivered on these aims:

delivering meaningful change for veterans around the UK. We are becoming a stronger voice on behalf of those we support in raising awareness of our cause, highlighting policy gaps, collaborating on effective solutions and demanding that the fair deal our veterans deserve is delivered.

Developing relationships

This year we continued to work closely with key stakeholders within the Government and NHS, to identify and improve care pathways for veterans with ongoing complex rehabilitation needs as a result of operational injury.

Understanding veterans’ needs

We strongly believe that the care needs of veterans are not currently being met. The expertise and facilities on offer for injured service personnel at The Defence and National Rehabilitation Centre (DMRC) Stanford Hall is unparalleled yet is currently only accessible to those still serving.

We aim to represent the voices of our veterans on the issues that matter to them, and so conducted a large-scale wellbeing survey to understand how the pandemic was affecting them and their families, to ensure their needs were being met.

We believe a small number of veterans should have the same access to ongoing rehabilitation support for traumatic injuries. In August we therefore brought together experts from NHS England, the Ministry of Defence (MOD), DMRC Stanford Hall, the Department of Health and Social Care (DHSC) and the Office for Veterans’ Affairs in a virtual round table to understand how we can ensure those veterans with complex needs are able to access the level of care they need. In the coming year we will establish a working group to review existing care pathways and collaborate on improved access to specialist care for the ongoing rehabilitation of traumatic injuries.

The survey revealed:

This year we also continued to cement strategic relationships with politicians, the MOD, NHS, civil servants, other charities and those with influence in

These results shaped our communications and are informing

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We champion the needs
of wounded veterans.
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the focus of our services throughout the pandemic and beyond - ensuring our wounded continue to receive the support and information they need.

The survey was so effective, we now plan to develop regular surveys across a range of topics to increase our understanding of the challenges facing wounded veterans and families, and ensure our campaigns remain relevant to their needs.

Calling on the Government to do more

Nearly 40,000 men and women were medically discharged from the British Armed Forces between 1999 and 2019. We believe too many continue to fall through significant gaps in statutory support.

In October 2019, we launched an ask on the Government to commission an independent review and audit of the medical discharge process, to ensure those forced to leave the military as a result of injury or illness are provided with the best possible opportunity to transition into civilian life.

18 HOW WE DELIVER ON OUR PROMISE

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Dom Lovett is one of 20 Very Seriously
Injured (VSI) veterans we have supported
through our VSI programme.
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“ Help for Heroes has helped no end with my mental and physical wellbeing. The equipment they’ve been able to supply me with has made me a lot more independent. I’m unbelievably grateful, they’ve managed to just completely change my life around”. Dom Lovett, VSI veteran

HOW WE DELIVER ON OUR PROMISE 19

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The seven veterans who each bravely shared
their story as part of our 40,000 Strong campaign.
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Our installation of 40,000 figures toured the UK.

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Behind every figure is a story.
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Through conversations with wounded veterans, their families and our staff experts, we identified that:

To highlight these issues, and to give a voice to many struggling in silence, we launched our 40,000 Strong campaign.

We took an installation of 40,000 figures around the UK, and to show that behind every figure is a story, seven of our veterans bravely chose to share their own. You can read Carl’s story on page 22.

Within the 40,000 medically discharged, there is a small group of Very Seriously Injured (VSI) veterans who require round the clock care. Last year, for the first time, we also shone a light on their needs.

Our Never Say Never campaign championed the way these individuals have repeatedly defied the odds. Having been told they would never

20 HOW WE DELIVER ON OUR PROMISE

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Members of the public
visiting an installation.
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walk, talk or play sport again we showed how, with our support, VSI veterans should “never say never”.

As a result of their injuries and care needs, these individuals are considered particularly hard to reach. Our campaign brought forward two new VSI veterans who are now receiving specialist support to improve their quality of life, through Help for Heroes.

Our Veterans’ Pledge campaign

The results of our Veterans’ Pledge campaign came to life this year. Run in conjunction with The Sun newspaper in the summer of 2019, the pledge called on the next Prime Minister to prioritise veterans’ needs.

From this, The Office for Veterans Affairs (OVA) was born, and recently marked its one-year anniversary. We look forward to working closely with the OVA over the coming year to drive strategic change for our wounded.

We also joined a MOD-led working group to advise on proposed legislation to enshrine the

Volunteers helping out as part of our 40,000 Strong campaign.

Annual Covenant in Law, another result of the Veterans Pledge campaign. We are working closely with the MOD and others in the sector to ensure the legislation is as effective as possible and benefits wounded veterans and families.

The Help for Heroes Field Guide

As the pandemic forced the UK into lockdown and NHS staff became the new frontline, we knew we had to do our bit.

Healthcare professionals were facing intense and traumatic situations, similar to those our veterans face in conflict. With this in mind we created our Field Guide to Self-Care – an online resource for our healthcare heroes using some of the tips and tools our recovery teams deliver to those we support.

We also took part in media activity to raise awareness of the challenges that might face health care professionals in the aftermath of the pandemic. Through this, we delivered more than 300 pieces of media coverage.

“ Help for Heroes was instrumental in linking its experts and sharing their experience, which could be incorporated into a rapidly evolving NHS response to support its staff during the pandemic.”

James Calder, Nightingale Hospital Clinical Lead (May 2020)

Our aims for

2020/21:

  1. To continue to build our reputation as an authority on the experiences and needs of wounded veterans

  2. To increase our level of influence in addressing policy gaps through our campaigning and public affairs activity.

HOW WE DELIVER ON OUR PROMISE 21

CARL’S STORY

Carl was one of the veterans whose story we told as part of our 40,000 Strong campaign, which you can read more about on page 20.

“ Everything I’ve done through Help for Heroes has been so good for my mind, body and soul and helped me to move forward with my life.”

During his first tour of Afghanistan in 2007 with the Grenadier Guards, Carl Shadrake suffered a brain injury when a suicide bomber detonated metres from him.

In 2012, after making a full recovery, he found himself back in Afghanistan. Tragedy struck again when, during a Taliban chase, a colleague stood on an Improvised Explosive Device (IED) and lost both legs. Carl had shrapnel embedded in his face, arms and stomach from the blast and was left with long term nerve damage in his shoulder.

As he recovered, Carl was told his brother had been shot and killed in action. Overcome with grief and knowing his own career was at an end, he struggled psychologically but tried to carry on and be strong for his family.

It wasn’t until Carl came into contact with us that he realised both he and

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Carl was injured twice in Afghanistan.
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forward with my life. It’s helped my wife too; she’s been on respite weekends, nutritional courses and had counselling. At one point I thought our marriage may not have survived due to the mental state we were both in. The support we’ve received has had such a positive impact on us both.”

his wife needed support. They joined our Fellowship programme and started spending time at our recovery centres.

“I can’t stress how good it was to spend time with like-minded people in a calm environment, where it felt safe to talk about our issues,” says Carl.

We also introduced Carl to our Sports Recovery programme, which helped him to find motivation and purpose once again.

“Everything I’ve done through Help for Heroes has been so good for my mind, body and soul and helped me to move

22 HOW WE DELIVER ON OUR PROMISE

SIMON’S STORY

At the start of the lockdown, the number of veterans struggling with their mental health rose by 50 per cent. When Simon’s Post-Traumatic Stress Disorder (PTSD) began to worsen, we stepped in to offer the support he needed.

“ When the pandemic hit I felt chaotic and scared. Some days I’d stay inside and I wouldn’t even get washed or dressed. I know it was hurting my wife to see me like that.”

Former Army Private Simon Nicholson suffers with Post-Traumatic Stress Disorder (PTSD). As the lockdown took hold, his mental health took a downward turn.

“Before the pandemic, I was suffering with sleep problems and anxiety,” explains Simon. “I was starting to cope, but when the pandemic hit I felt like I had gone back to the start.”

Simon’s panic attacks, which he’d suffered with since having a breakdown five years ago, got worse. Some, he says, were triggered by watching people panic buying in supermarkets. On top of his mental health struggles, Simon was also having to manage pain in his back, after a planned procedure to ease the agony caused by two slipped discs was cancelled.

Simon told us that, at first, he “didn’t feel worthy” of asking for help. But we’re glad he did. He told us that photography always helped to relax

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Photography helps Simon manage his PTSD.
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and distract him whenever he felt anxious or low, and that he’d often head out on walks and take pictures of wildlife using his mobile phone. And so our Grants Team, who offer financial support to veterans to ease the distress caused by an injury or illness, quickly organised funding for a proper camera for Simon. And it’s had a big impact on his wellbeing.

“At the start of the pandemic, I wanted to keep away from everybody and my anxiety started to peak. But gradually I’d take my camera and I’d go outside while the streets were quieter and there were no cars and no queues. I’d take my dog with me too and the whole thing was a breath of fresh air for me, literally.

“Help for Heroes really has helped me get through this pandemic and I know that is possible because of the public’s support. I am so grateful.”

“The camera gave me a reason to be outdoors which has helped my mental health hugely. Without it, I’d have stayed locked inside and my anxiety levels would be through the roof.

HOW WE DELIVER ON OUR PROMISE 23

FUNDING THE CAUSE

Like most charities, the pandemic has had a devastating impact on our fundraising efforts and from March onwards we had to make rapid changes to our strategy and plan. Despite this, we remain determined and focused on building on the opportunities we have and being innovative and resourceful to continue to drive our income.

Our aims for 2019/20 were to:

How we delivered on these aims

We started the financial year in a positive position. Our income had grown year-on-year and our fundraising strategy was continuing to drive secure and repeatable income.

Engaging our supporters

Over the past year we have gained a deeper understanding of our supporters and have identified new growth audiences to engage with. We’ve refined our supporter engagement strategy and tested different approaches in our communications so that when our supporters hear from us, they receive content that actively demonstrates the difference their donations make.

We will build further on this strategy in the coming year, to ensure we continually improve on the way we welcome new supporters and fundraisers and to keep them engaged with us as a Charity.

Our volunteers are incredibly valuable members of our family and in late 2019 we launched a dedicated hub, just for them, via Workplace from Facebook. The hub enables us to regularly interact with our volunteers, and ensure they receive the latest news and updates about the wounded veterans and family members they so generously support.

Developing our cases for support

Our Fundraising, Marketing and Recovery teams worked closely this year to begin developing compelling ‘case for support’ materials - produced to showcase the services we deliver, the ongoing needs of our wounded and our vision for the next three years. These were designed specifically to help us drive deeper levels of engagement with our corporate partners and philanthropists.

When the pandemic hit, we had to make rapid changes to the way we deliver our services, putting the finalisation of these materials on hold. We continue to develop them to reflect the ongoing changes to the way we operate and completing them will remain a key aim in the forthcoming year.

Our Partnerships Team also nurtured and grew existing relationships and developed new ones. A highlight was the relationship we built with Lyle’s Golden Syrup to mark the 75th anniversary of VE Day in May. We worked with them to design a special edition VE Day Limited Edition tin, with 5p from every tin sold donated in support of our heroes, which raised over £25,000.

This year we continued to work in partnership with The Royal British Legion (RBL) and Ministry of Defence (MOD), to deliver the Invictus UK programme. A huge thank you to our Presenting Partner of Invictus UK, BAE Systems, for their unwavering commitment to Team UK, with

a particular mention to the fantastic ongoing support from its employees.

Over the past six years Debenhams has raised over £2.3 million for Help for Heroes through staff and customer fundraising, clothing ranges and challenge events. Debenhams also participated in our 40,000 Strong campaign by featuring “live” mannequins in its Manchester flagship store window displays – including veteran amputees and fashion influencers. You can read more about our 40,000 Strong campaign on pages 18–20.

We are also extremely proud to continue our partnership with Moto in the Community (MITC) and received an exceptional donation of £500,000 in 2020, taking the total raised since the partnership began in 2012 to £2.8 million. The long-term commitment of MITC has made a life-changing difference to our wounded veterans and their loved ones. We continue to be inspired by the commitment and fundraising efforts of Moto staff, customers and suppliers and remain extremely grateful for their ongoing support.

24 HOW WE DELIVER ON OUR PROMISE

Boosting our fundraising efforts

In the first half of the year we invested in our community fundraising efforts and saw some good growth in this area, developing new community fundraising events and partnerships and running successful national collections in partnership with Tesco and Transport for London (TfL).

When the pandemic hit, many of our planned community events unfortunately had to be cancelled. Next year we hope, restrictions allowing, that we can continue to evaluate and bolster our efforts in a Covid-safe way.

Our events portfolio continued to deliver good engagement; we had a great number of signs ups for our flagship fundraising event, the Big Battlefield Bike Ride (BBBR) in June – although sadly we had to cancel the event itself due to the pandemic – and we launched a new gaming proposition – ‘Hero Up’ in March.

In February, we were also fortunate to receive a significant grant from the Headley Court Trust to develop our Community Rehabilitation Teams which, although restricted over five years, has made a significant difference to our income in this financial year.

The impact of the pandemic

Like most charities, the pandemic has had a huge impact on our ability to fundraise. In March, we were forced to cancel all planned face-to-face fundraising activities and performance turned from growth in the first half of the year to decline in the second.

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85%
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Events income

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37%
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Community fundraising income

Our fundraising efforts suffered across the board, with the most significant drops in income seen across our events and national collections portfolios. It is anticipated that we’ve experienced losses in the region of:

In reaction to this, we focused our efforts on delivering what was possible, putting more behind our gaming product ‘Hero Up’ and launching a new virtual event – ‘Step2It’. We also launched two cash appeals in November 2019 and June 2020, which combined raised a total of £139K.

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88%
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National collections income

25%

In memory of income

Our aims for 2020/21:

HOW WE DELIVER ON OUR PROMISE 25

TRADING

Our Trading company, which runs the Help for Heroes online shop, gifts all its profits to the Charity to help provide support for our wounded and their families.

Our range of branded clothing and merchandise has always been popular with our supporters, and we’re incredibly grateful to those who choose to wear their support.

recovery journey and by using their designs we were able to tell some of the moving stories behind their creations. We also used our retail channel to tell stories about how we support our wounded, and to inform supporters of some of the partner organisations we work with to develop some of our ranges.

At the beginning of the year our online shop played a key role in the delivery of our 40,000 Strong campaign, by providing a way for supporters to donate and receive one of our 40,000 strong boxed figures. We also developed products in support of some of our other key marketing campaigns such as the Never Say Never campaign we ran in December and January to highlight the needs of our Very Seriously Injured (VSI) veterans. You can read more about both campaigns on pages 18-21.

Throughout the year, those we support helped design many of our products – from Christmas cards to seasonal clothing ranges. Many of our veterans undertake art therapy as part of their

26 HOW WE DELIVER ON OUR PROMISE

Total clothing items sold:

Website visits:

Total donations through our shop:

Veteran John Gedon with his WiSP Balm.

One of our partners, and someone we were delighted to work with this year was bee keeper and Army veteran John Geden. John developed WiSP Balm, a beeswax-based product designed to soothe dry or irritated skin, and for every tin sold he kindly gifted £1 to us.

Fortunately we were able to maintain our merchandise operation through the pandemic, working closely with our logistics partner to manage any delays in product delivery. We also reviewed some of our key carriage costs and made changes to our supplier base.

Next year, we hope to introduce some new product lines to our merchandise collection, including childrenswear and several new lines in womenswear. We also plan to review and improve the way we gather donations via our shop.

HOW WE DELIVER ON OUR PROMISE 27

OUR PRIORITIES FOR 2021 AND BEYOND

28 OUR PRIORITIES

CHAMPION FUND THE RESHAPE THE CAUSE RECOVERY WOUNDED

MAKING IT HAPPEN

Our mission

We fight for those who fought for us

No matter when or where someone served, we believe anyone affected by military service deserves a fair deal afterwards. Those we support deserve to live a secure and healthy life with purpose.

We are thought leaders driving positive change

We will continue to influence positive change, as the recognised thought leader in the experiences and needs of wounded veterans. We will use our world-class knowledge to best support and champion their needs.

Our brand compels people to act

Our brand will be recognised and valued everywhere, and it will compel people to act in support. We will continue to build trust in our brand through cause related campaigning and insight, stimulating positive action from supporters and partners, no matter the political climate and external challenges facing the sector.

We are providers of world class

support to veterans and their families

We will continue to reshape our services to ensure we give our veterans and their families relevant,

responsive and effective support, delivered to externally recognised quality standards. This includes continuing to build and develop our Recovery College – giving veterans and their families access to focused learning opportunities which complement clinical and other interventions for physical and psychological health and wellbeing. Our work will be underpinned by robust Case Management. We will involve veterans and families in service design, ensuring their voice is heard. We will ensure support is more accessible by expanding our community and digital delivery.

We are one team, making things happen

We will continue to be a team that makes things happen. An agile team, working efficiently and effectively. Our people will feel engaged and inspired, connected to our cause, clear on our purpose and committed to continually delivering excellence. Together, we will create and sustain a great working environment, building a community in which we thrive and perform to our best.

We are keepers of our promise

We promise to fight for those who fought for us. We will be here for as long as they need us. We will protect the future of our Charity for our veterans and their families, making bold decisions to ensure sustainability. We will develop a balanced and profitable income portfolio.

We will make good use of our investments and will nurture innovation. We will test higher risk income without risk to our sustainability. We will be able to evidence the scale and impact of all that we do as we continue to demonstrate our value.

Our strategic objectives

Covid-19 has had a devastating impact across the Charity, impacting our veterans and their families, our supporters and income, and our colleagues and resources. Our strategic objectives remain unchanged and our work to balance income and expenditure remains crucial.

We will work to continue to meet our promise, providing life-long support for those most in need. Our services and support will enable recovery progression, choice and independence for our veterans and their families.

OUR PRIORITIES 29

35

KEY FIGURES

30

25

20 15 10

5

OUR INCOME £24.4M

Donations and Grants £14.0 million Legacies £6.7 million Trading £2.1 million Challenges and Events £0.8 million Investments £0.5 million Other £0.3 million

30 OUR PRIORITIES

OUR EXPENDITURE £30.8M

~~Recovery Delivery~~ £17.8 million

This year, whilst our deficit reduced compared to the previous year, our recurring income has fallen considerably due to the impact of Covid-19. Our total income at £24.4 million is £2.4 million less than that of 2018/19, despite the fact that we received a non-recurring £5.1 million grant from the Headley Court Charity to support a community delivery programme over the next five years.

Cost of Raising Funds £6.4 million (Excluding trading activities)

Grants £3.2 million

Trading Activities £2.0 million

Championing the Wounded £1.4 million

OUR PRIORITIES 31

OUR RESPONSIBILITY

We take seriously our responsibility to deliver on our promise, by raising sufficient funds and using resources wisely.

Public Benefit Statement

Help for Heroes (the Charity) works to provide practical, direct support for those physically or psychologically wounded while serving in the British Armed Forces. The Trustees have considered the Charity Commission’s general guidance on public benefit and have taken it into account when reviewing the Charity’s aims and objectives and in planning its future activities. The Trustees are satisfied that the aims of the Charity are carried out wholly in pursuit of its charitable aims for the public benefit. The Trustees consider the activities as described on pages 7 to 23 clearly demonstrate the public benefit provided by the Charity.

Our Charitable Objects

Our charitable objects remain unchanged, these are:

  1. To assist persons who are currently serving or who have served in the Armed Forces, and their dependents, by advancing any lawful charitable purpose at the discretion of the Trustees and in particular but not exclusively:

  2. To promote and protect the health of those who have been wounded or injured while serving in the Armed Forces through the provision of facilities, equipment or services for their rehabilitation; and

  3. To make grants to other charities who assist members of the Armed Forces and their dependants.

  4. To promote and protect the health of those that have been wounded or injured while providing services to, or in conjunction with, and in either case under the direction of the Commander* of the Armed Forces, in an area of conflict or war and to provide benefits to the dependants of such persons who are in need.

  5. The Commander of Her Majesty’s Armed Forces and his officers, or, where relevant, of any allied military body with whom Her Majesty’s Armed Forces are working during combined operations.

32 OUR PRIORITIES

OUR STRUCTURE, GOVERNANCE AND MANAGEMENT

Help for Heroes was incorporated on 6 September 2007, registered with the Charity Commission on 20 September 2007 and launched on 1 October 2007.

Governance structure

We currently have a board of eight Trustees, all of whom are members of the Charity. The Board meets at least four times a year, however due to the impact of Covid they met ten times during the 2019/20 year. All sessions are minuted.

The Trustees, who are also directors under company law, who served during the year ending 30 September 2020 and up to the date of this report were as follows:

Nigel Boardman (Chairman, appointed 1 September 2020)

Charles Donald

Charles Michael Lake CBE (resigned as Chairman and Trustee 15 December 2019)

Clive Warner (appointed 23 July 2020)

Major General (RETD) David Hook CBE Royal Marines (resigned 18 November 2020)

Liz Rylatt

Manroop Khela

Oliver Gregson

Lieutenant General Sir Philip Trousdell KBE CB (Chairman 15 December 2019 – 17 May 2020, resigned 17 May 2020)

Philip Yates (Vice Chairman from 2 September 2020)

Robert Watsham (resigned 10 December 2020)

Roderick Dunn MB DS DMCC FRCS (resigned 19 November 2020)

Stuart Bell CBE

Thomas Wright (resigned 10 December 2020)

Tony Schofield (resigned 23 November 2020)

Professor Veronica Hope Hailey, BA, MSc, Ph.D., MCIPD (Chairman 17 May 2020 – 1 September 2020, resigned 1 January 2021)

General The Lord Dannatt GCB CBE MC DL (retired as the Charity’s Honorary President, 21 November 2019)

All Trustees are unremunerated.

As well as regular full Trustee Board meetings, the Trustee Committees that met during the year were: – Nominations – Audit and Risk

During the year a Finance and Investment Committee was established which met once during the 2019/20 year and will meet at least four times a year going forward.

The Nominations Committee, amongst other things, is responsible for recruiting new Trustees and making board appointments. One of its aims is to ensure a broad mix of skills and backgrounds and, as a minimum, would include representation from the Armed Forces Services and the professions.

New Trustees are going through a period of induction and training, managed by the Head of Risk and Compliance, as part of the wider ongoing programme of Trustee briefings and development. The Board are undertaking regular assessments against the Charity Governance Code to develop high standards of governance.

OUR PRIORITIES 33

Management structure

The day-to-day management of the Group is conducted by the Executive Team under authority delegated to it by the Board of Trustees. In this financial year, our Executive Team reduced from nine employees to five. The new structure was designed around our Business Plan; providing world class recovery services, championing the needs of our wounded and funding our cause. Through these changes we have established a more agile and focused team, while also aiding our intention to cut Charity costs.

During the financial year 1 October 2019–30 September 2020, our Executive Team, which meets weekly, consisted of the Chief Executive and Directors:

Chief Executive Officer

Performance Director

Melanie Waters OBE

Peter Smith (until 27 May 2020)

Marketing, Communications and Public Affairs Director Beth Miles (previously Marketing and Fundraising Director)

Fundraising Director

Polly Shute (from 1 June 2020 to 15 September 2020)

Chief Financial Officer

People Director

Polly McGivern FCA (from 1 June 2020)

Susan Turnbull (until 31 December 2019)

Chief Financial Officer

Chief Information Officer

Clive Emerson FCA (until 29 February 2020)

Tim Bird (until 31 January 2020)

Chief Operating Officer

James Needham (formerly Operations Director)

Services Director

Lis Skeet

Strategy, Innovation and Partnerships Director Kevin Rennie (until 31 December 2019)

OUR FOUNDERS

Help for Heroes was founded in 2007 by Bryn Parry OBE and Emma Parry OBE with one objective, to help those who put their lives on the line for us by joining our Armed Forces.

In the years that followed and thanks to the couple’s drive and commitment, Help For Heroes grew. To date, and thanks largely to Emma and Bryn’s unrelenting work, more than 26,500 individuals have received help to recover from physical and psychological wounds and get on with their lives. The couple stepped down in November 2016, passing the baton to Melanie Waters, former Chief Executive of The Poppy Factory and our now-CEO.

34 OUR PRIORITIES

LEGAL AND ADMINISTRATIVE DETAILS

Group structure and subsidiaries

Help for Heroes Recovery

Help for Heroes Recovery is registered in England and Wales as a charity, number 1143004, and as a company limited by guarantee, number 07647921. Help for Heroes Recovery was not active in the year.

Help for Heroes Trading Limited

Help for Heroes Trading Limited is registered in England and Wales as a private limited company, number 06380957.

The sale of merchandise and the licencing of our brand continue to be key focuses. The main aim of these activities is to provide income to Help for Heroes (the parent Charity), as well as raise awareness of its activities.

Help for Heroes Development Company Limited

Help for Heroes Development Company Limited is registered in England and Wales as a private limited company, number 07464349. The company was not active during the year.

Charity Status

Help for Heroes is a public benefit entity, registered in England and Wales as a charity, number 1120920 and as a company limited by guarantee, number 6363256. Help for Heroes is also registered as a charity in Scotland, number SC044984. The Charity has no maximum permitted membership and membership is open to any individual interested in promoting the objects of the Charity. There are currently eight members, all of whom are Trustees. Each member guarantees to contribute up to one pound sterling (£1) to the Charity’s debts, liabilities and costs in the event of the Charity being wound up and for one year after ceasing to be a member. Help for Heroes is governed by its Memorandum and Articles of Association. The Annual Report is filed with the Charities Commission, Companies House and the Office of the Scottish Charity Regulator.

Registered Office

14 Parkers Close, Downton Business Centre, Salisbury, Wiltshire SP5 3RB

Company Secretary

Wilsons Solicitors LLP, Alexandra House, St John’s Street, Salisbury, Wiltshire SP1 2SB

Bankers

Barclays Bank PLC, 1 Churchill Place, London E14 5HP

HSBC, 8 Canada Square, London, E14 5HQ

Lloyds Bank PLC, 25 Gresham Street, London EC2V 7HN

Nationwide, Nationwide House, Pipers Way, Swindon, SN38 1NW

Santander UK PLC, 2 Triton Square, Regent’s Place, London NW1 3AN

Investment Fund Managers

Ruffer LLP, 80 Victoria Street, London SW1E 5JL

Veritas Investment Management LLP, 90 Long Acre, London WC2E 9RA

Solicitors

Wilsons Solicitors LLP, Alexandra House, St John’s Street, Salisbury, Wiltshire SP1 2SB

BmyHero Limited

BmyHero Limited is registered in England and Wales as a private limited company, number 07192143. The company was not active in the year.

Auditor

Crowe U.K. LLP, 55 Ludgate Hill, London EC4M 7JW

All subsidiary companies donate all distributable profits to Help for Heroes.

OUR PRIORITIES 35

POLICIES AND DISCLOSURES

Reserves policy

Reserves are held to make sure we can deliver on our promises to our wounded and their loved ones. It would be wrong to promise longterm support if we were not sure we could provide it.

The Trustees have considered the guidance issued by the Charity Commission: CC19 Building Resilience and the requirements of the Charities SORP (FRS 102) when considering the reserves policy below.

It is essential to appreciate that a significant proportion of our funds are held in the form of our purpose built recovery centres. The funds, which comprise our fixed assets, including our recovery centres, are not realisable as cash reserves to support any day to day running costs.

Against the financial backdrop of falling income in recent years, Trustees continue to assess how much of our reserves should be spent and how much should be retained. An analysis of our funds is shown in the table to the right.

Restricted funds

Donations, legacies and grants received where the donor has specified that the monies should be used for a specific purpose (e.g. a specific centre or area of recovery).

At the 30 September 2020 the restricted fund was £5.8 million. It is intended to spend down restricted fund balances within five years. As these funds are required to be spent on specific parts of our activities and so are not freely available to support all our objectives they are excluded in determining our reserves.

Designated funds

Fixed Assets

Representing the value invested in our Help for Heroes recovery centres and other fixed assets. These assets

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2020 2019
£’000 £’000
Restricted funds 5,775 544
Designated funds
Fixed Assets (including recovery centres) 36,357 40,279
Capital Fund 6,500 6,500
-
Recovery Projects 3,000
Recovery Fund (two years’ running costs) 16,000 24,000
Total designated funds 58,857 73,779
General funds 17,490 12,140
Total funds 82,122 86,463
----- End of picture text -----

cannot be sold and are held as part of our capability to deliver on our promise to provide recovery services for our veterans, their loved ones and serving personnel. As the value of this fund is made up of fixed assets used for the delivery of our activities, this fund is not included in the calculation of our reserves. At 30 September 2020 the designated Fixed Asset Fund was £36.4 million.

Recovery Projects

Funding for major projects whose expenditure cannot be met from a single year’s income alone and is not covered by any other fund.

A major project was expensed in the year to 30 September 2020 and no further major projects which require a designation of funds are currently anticipated.

Capital Fund

Recovery Fund

Funds needed to meet future major repair and maintenance projects (expected to be incurred within the next 10 years), plus one to two years’ forward capital spend.

This fund is set at two years’ running costs for our recovery provision. This is to ensure that, should we no longer have the income to run our recovery services, we can continue to provide recovery support to our beneficiaries whilst we look to transfer our services to other providers.

At 30 September 2020 the designated Capital Fund was £6.5 million. Most of this fund is expected to be held for more than three years and as this fund is set aside for future capital and maintenance projects the fund has been excluded when determining the level of reserves held.

At 30 September 2020 the Recovery Fund was £16 million. Although the Trustees consider the Recovery Fund to be part of Help for Heroes reserves

36 OUR PRIORITIES

we believe that this fund should be ring fenced to ensure that we would never be in a position where a rushed closure of our recovery activities would cause our beneficiaries to be unable to obtain the support they need.

General funds

Given the ongoing impact of Covid-19, the Trustees have reviewed the appropriate level of general funds it is thought appropriate to hold. Following that review it was decided that the general funds should be held at a level which would support 12 to 24 months of non-recovery running costs. This is an increase from last year when it was considered appropriate to hold between six and 12 months of such costs. This will ensure that in the event that income remains significantly lower than in previous years we can meet the costs of fundraising and support during that period. Should this position not be reversible in that period then we would look to utilise our Recovery Fund to ensure we can continue to meet the costs of delivering our essential services to our beneficiaries whilst we look to transfer our services to another provider.

Based on the above parameters, this fund is expected to be between £9.8 million and £19.6 million. The balance in the General Fund and Help for Heroes reserve level (excluding the Recovery Fund) was £17.5 million at 30 September 2020 which is within that range.

Future reserve levels

At 30 September 2020 our reserves are within the range the Trustees consider to be optimal for Help for Heroes. Based on our three year business plan we would expect to remain within our target range. However, the Trustees are continually monitoring the plans and performance to assess the continuing impact of Covid-19 and making adjustments where necessary to ensure reserves will remain at the target level.

Investment policy

The amount held in investments and the type of investments is reviewed by Trustees in line with the reserves policy and anticipated expenditure.

Our ethical investment policy requires that investments held must be sensitive to the cause of the Charity that provides care and support for wounded British military personnel. Investments should not be held in any company or country whose intentions are contrary to those of such a charity.

A conservative approach is taken with regard to risk and capital preservation by investing in real return funds with Veritas Investment Management LLP and Ruffer LLP. The performance of those funds is reviewed quarterly against a three-year benchmark of the Retail Price Index (RPI) + 1 per cent.

The benchmark of RPI + 1 per cent over the last three years is 10.2 per cent. In that time, the Veritas portfolio has delivered a return of 18.4 per cent, however the Ruffer portfolio has delivered a return of 9.7 per cent. Over a five year period, the Ruffer portfolio returned 22.3 per cent compared to the RPI +1 per cent benchmark of 19.1 per cent. The Veritas portfolio has delivered a return of 45.6 per cent. The Ruffer portfolio is held to protect against significant falls in investment markets; by reducing the amount of volatility.

A review of investment managers commenced in the 2019/20 financial year and has concluded following a tender process in the 2020/21 financial year.

The Group maintains a panel of banks and aims to hold no more than two-thirds of its cash and deposits with any single institution.

Risk management

The Executive Team review the Group Risk Register on a quarterly basis for prioritisation before it is presented to the Trustee Audit and Risk committee and Board for validation. Risks are prioritised according to their probability and potential impact, and then adjusted for the effect of mitigating controls.

Significant areas of risk currently include:

1 Fundraising

The priority for the Trustees and the Leadership Team is to drive sustainable and secured income, as detailed in the Funding the Cause section on pages 24 to 25. We are focusing on enhancing our supporter journey and alternative fundraising opportunities.

2 Safeguarding

Maintaining the highest standards for our beneficiaries, staff and volunteers is of paramount importance. During the last year we have continued to enhance our policies and procedures to align to regulatory and best practice standards. Our Internal Safeguarding Board has provided ongoing guidance and assurance to the Executive Team and Trustees.

OUR PRIORITIES 37

3 Data protection and information security

The security and protection of information is fundamental to the effective and efficient working of Help for Heroes and the maintenance of confidentiality. During the last year we have conducted further external testing of our network security and moved to remote working, implementing guidance and training which covers all aspects of data and information security.

4 The on-going pandemic

During the year all areas of activity have been impacted by the on-going COVID-19 pandemic. We have carefully monitored latest Government advice and a working group have met regularly througout the year, and continue to meet in 2020/21, to make key decisions around the impact of COVID-19 and any mitigating actions that we need to take to minimise the risks to the Charity, its beneficiaries, supporters and staff.

We have strong internal controls, an Income Protection Team and we outsource Internal Audit where required, to prevent financial loss and reputational damage. Any suspicious or inappropriate activity is promptly investigated, and the relevant actions taken.

Complaints handling

We aim to ensure that any concerns or complaints raised are fairly, transparently and robustly managed in line with our complaints policy, and seek to understand where improvements to service delivery can be made for the benefit of all.

Where appropriate, and led by their guidelines, we pass information about complaints or other incidents to the Charity Commission and/or the Information Commissioner’s Office (ICO).

During the last year we have referred five serious incidents to the Charity Commission. In all cases, after providing the outcomes of our internal reviews, no further actions were required. The Charity works closely with the Charity Commission and is a member of the Charities Against Fraud Group.

Fundraising disclosures

Help for Heroes is registered with the Fundraising Regulator and adheres to the Code of Fundraising Practice. Whilst we fundraise in many different ways, we do not undertake door-to -door collections and all of our registered volunteers are given guidance on the expected standards. None of our staff, volunteers, professional fundraisers or commercial participators are put under pressure to raise funds on the Charity’s behalf.

We employ three professional fundraising organisations (PFOs) who act on our behalf to recruit new regular donors as part of the Give As You Earn scheme via a large roster of businesses and companies which we would not, otherwise, have the resource or be permitted to approach. Each PFO is paid by results, meaning we only pay for each new supporter they sign up.

In 2019/20 we worked with two further PFOs. One arranges challenge events, for which Help for Heroes is a Charity partner and the other is an independent consultant who provides networking services with a view to facilitating fundraising.

We have formal agreements with our professional fundraisers with specified standards of performance. We enter into these agreements in order to raise net funds to continue our important work.

Some individuals who sign up to our challenge events, e.g. Big Battlefield Bike Ride (BBBR), are also considered to be professional

fundraisers because they receive a place on the event in return for a minimum fundraising target. They are provided with formal agreements which include fundraising standards.

The Help for Heroes group also engages with a number of corporate organisations, many of whom do not fundraise for us but make a payment for use of our logo. We are ensuring that all of our contracts are regularly reviewed and are being updated to include all regulatory requirements.

We monitor the approach of our professional fundraisers and commercial participators in order to protect donors, supporters and the organisation from poor practices. Monitoring includes meeting regularly with commercial participators and communicating regularly with fundraisers taking part in our challenge events such as BBBR.

During the period to 30 September 2020 we received 14 complaints relating to fundraising, none of which related to professional fundraisers or the companies with whom we have a commercial participator agreement. We investigate all complaints and are satisfied that none of these complaints relate to a breach in fundraising guidelines.

38 OUR PRIORITIES

STATEMENT OF COMPANY’S BUSINESS RELATIONSHIPS WITH SUPPLIERS AND OTHER STAKEHOLDERS

As a large charitable company, Help for Heroes is required to report on how the Trustees have discharged their duty to promote the best interests of the Charity whilst having regard to the matters in section 172(1) (a) to (f) of the Companies Act 2006, namely:

The Trustees recognise that relationships with stakeholders are key to the success of the Charity. The table below sets out our key stakeholders, our considerations with regard to them and how we engage with them.

Stakeholder Mapping

----- Start of picture text -----
Stakeholder Consideration How we engage
Veterans and their loved Help for Heroes has supported Direct communications including a weekly newsletter
ones (beneficiaries) more than 26,500 veterans and their (Bandstand) and a Facebook page for our Fellowship
loved ones. We want to make sure members.
they, and all eligible beneficiaries
During the pandemic, we launched virtual get togethers over
yet to engage, understand the
Microsoft Teams.
difference our support can make to
their recovery and what is on offer. Veteran events, courses and activities (all run face-to-face
pre pandemic).
We want them to be part of the
Help for Heroes conversation and Regular surveys and focus groups.
feel confident that the Charity is
Via the Help for Heroes website and social media platforms
championing their needs.
(including Facebook, Twitter and Instagram).
A priority for 2020-21 is to continue
A regular Beneficiary Panel meeting whereby those we
to drive beneficiary engagement
support meet with key Charity stakeholders to discuss the
and ensure beneficiaries have a
issues important to them.
clear voice to influence plans and
delivery plus increase advocacy for A number of our beneficiaries have been involved in co-
the Charity. creating course materials for our Recovery College - drawing
on their own ‘lived experiences’ in a way that can help others.
Employees We strive to create a culture Staff Intranet (Formerly Jostle, now called The Loop).
whereby employees feel proud to
Regular emails and videos from the CEO and others within
work for the Charity and understand
the Executive Team and regular gatherings.
the difference they are making to
the lives of those we support. Annual staff conference.
We ensure we are transparent with Quarterly all-staff meetings.
opportunities for growth, training
We receive feedback and seek to implement positive change
and development and that we
through our team of employee ‘Super Connectors’.
contribute positively to a diverse,
inclusive and equal workforce. Employees are represented within our Diversity and Inclusion
Working Group.
We offer fair and appropriate
remuneration, benefits and Regular employee surveys (including wellbeing surveys and
conditions. ways of working proposals).
Learning and development through our People Team.
----- End of picture text -----

OUR PRIORITIES 39

Stakeholder Mapping

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Stakeholder Consideration How we engage
Volunteers We connect volunteers socially Volunteer Intranet (Facebook Workplace).
with the Charity and each other,
Monthly meetings (joined by a member
encouraging positive interactions/
of the Executive Team).
participation from users.
A monthly “Audience with a Help for Heroes Ambassador”.
We share content to support
volunteers in their role so that they Newsletters.
are engaged and confident.
Personalised phone calls.
We share Charity news that
Face-to-face engagement with the Community
drives volunteer contribution and
Fundraising Team (pre-pandemic).
reinforces the reasons why
they support.
We want to inspire conversations
and encourage accessibility to
information and stories.
Partners – including We want to build and sustain Sharing publication of research and impact reports.
but not limited to: The relationships with key stakeholders
One-to-one engagement on relevant issues.
Confederation of Service and influencers.
Charities (COBSEO) Lobbying for change at a policy level.
It is our mission to demonstrate
members, Ministry
our knowledge and expertise on Direct communications.
of Defence (MOD),
issues affecting our veterans, and
Government, Corporate Joint working on case studies where appropriate.
the wider society – particularly in
Partnerships and NHS.
the areas of mental health, sport,
trauma-informed recovery and
disability. We want to use this
knowledge to advise and consult
on topical issues that affect
our veterans.
We aim to clearly communicate
externally what we are fighting for
and why, and increase visibility of
our efforts to ensure veterans and
their families get the support
they deserve.
Ambassadors We want our ambassadors to feel Direct communication: provided with updated Charity
engaged and well-communicated messaging, statistics and FAQs.
with so they can endorse and
Facebook Workplace for Ambassadors (in progress).
advocate for the Charity across
their networks and help myth bust Monthly conference call with Chief Advocacy Officer
if necessary. and Communications Team.
Media We strive to protect the Charity’s Proactive media releases featuring our beneficiary or
reputation whilst promoting our fundraiser case studies.
positive news stories, to ensure
Providing a reactive response to media enquiries.
we hit fundraising targets and that
eligible veterans come forward Campaigns to encourage help seeking and to make the public
for support. aware of the needs of our wounded.
Fundraisers/Supporters We want to drive engagement, Social media platforms (Facebook, Instagram, LinkedIn
loyalty and income among our and Twitter).
supporters.
News and information published on our website.
Monthly email newsletters.
Fundraising events and challenges throughout the year
(some virtual ones have run in place of face-to-face events
due to Covid restrictions).
Personalised communications such as letters, certificates
and video communications.
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40 OUR PRIORITIES

KEY DECISIONS IN 2019/20

The table below sets out the key decisions taken in the year to 30 September 2020 and how the interests of our stakeholders were considered when making those decisions.

Existing 2019-2020 was the second year of a Key considerations:
strategy
management		 three-year business plan which was
focused on ‘closing the gap’ between
income and expenditure of the Charity.
The main pillars of the strategy were		 In considering which projects and work were pursued under the
three-year business plan, a delivery plan was developed outlining the
key milestones and strategic projects prioritised in order to deliver
the plan.
Reshape Recovery, Champion the
Wounded and Fund the Cause, all		 • The business plan was approved by the Board prior to launch
underpinned by effective delivery. of the plan.
• Day-to-day decisions were delegated to the Executive
Management Team.
• High value, key projects, income and key partnerships were
considered, and if appropriate, approved by the Board with
regards to:
• The use of charitable funds
• Assessment against both object and strategic alignment
• Compliance with the ethical fundraising policy.
• Compliance with the Charity Commission regulations, and where
appropriate, Office of the Scottish Charity Regulator, Financial
Conduct Authority, and Information Commissioner’s Office.
• Board meetings were held regularly, and the board received regular
updates on all activities.
Managing In March 2019 the Coronavirus Key considerations:
through
Covid-19		 pandemic significantly affected
operations in the UK with a national		 As it became clear the pandemic would affect the UK significantly, a
cross functional working group, including the Executive Team, was
lockdown coming into operation in late
March. This necessitated significant
changes to the business plan and
operations of the Charity.		 convened to manage impact on the day to day running of the Charity and
make decisions in line with the rapidly changing situation. The working
group met regularly to review Government guidance and issue direction
to the employees of the Charity.
• Decisions were taken to cease face-to-face service delivery in line
with Government guidance.
• All employees were directed to work from home from 16 March
in line with guidance.
• All face-to-face fundraising was ceased during lockdown in line
with guidance.
• 40 per cent of staff were put on furlough.
• The Board were kept informed of developments as and when
they happened.
• The wellbeing of employees and beneficiaries was prioritised
at all times.
• The Charity business plan was adapted to align with the changing
situation due to Covid-19, with the development and delivery of non
face-to-face recovery services prioritised. Alternative fundraising
activity was also developed.

OUR PRIORITIES 41

Restructuring The financial impact of Covid-19 forced Key considerations:
the Charity us to develop cost reduction measures,
including reducing the number of staff
that work for the Charity, to protect our		 • Future scenario planning to ensure long term sustainability
of the Charity.
life-changing services. We furloughed • Full employee consultant process followed and adhered to.
almost 40 per cent of staff for seven
months in 2020 and put in place a		 • Change management and the impact on employees, volunteers
and beneficiaries.
recruitment freeze. We made the
difficult decision to put 143 roles at		 • Clear and regular employee communication and monitoring of
risk, of which 89 were made redundant. employee wellbeing throughout the process.
Closure of The Board approved the restructure
prior to implementation.
Part of our strategic plan was to blend		 • Clear and regular beneficiary communication to ensure they were
informed and knew how to continue to access support.
• Stakeholder engagement to ensure clarity and control of message.
recovery the way we deliver services, focusing
centres on increasing delivery of face to face
support in the community, as well as
increasing digital access to the charity’s
services. The pandemic accelerated
the need for this change and continued
COVID restrictions meant that
wounded veterans had a greater need
for support closer to home, in their
communities and online. The impact
and reach that we saw from this model
drove our decision not to operate
out of three of our Recovery Centres
for the foreseeable future (Catterick,
Colchester and Plymouth). We work
closely with the MoD to ensure that all
centres will continue to provide core
recovery activities for wounded, injured
or sick Service Personnel.
Appointment A new Chair was appointed in Key considerations:
of a new Chair
of the Board		 September 2020 to replace the previous
Chair, who stepped down in December
2019, and the interim Chair – Professor		 • Recruitment consultants Saxton Bampfylde were engaged
to manage the recruitment process.
Veronica Hope Hailey. • The nominations committee led the recruitment and interview
process on behalf of the Board.
• The Board were kept informed and approved the final appointment.

42 OUR PRIORITIES

SUSTAINABILITY AND CARBON REPORTING

Help for Heroes is reporting energy and carbon emissions in compliance with The Companies (Director’s Report) and Limited Liability Partnership (Energy and Carbon Report) Regulations 2018.

Energy

Energy
Source Consumption KWh CO2 Emissions
Electricity 531,871 124,000
Gas 1,119,754 207,835
Total 331,835

Transport

Transport
Source Consumption KWh CO2 Emissions
Fleet (diesel litres) 15,528 40,375
Fleet (petrol litres) 118 259
Hire (diesel litres) 250 650
Claims (miles) 158,808 45,105
Total 86,389
Total Emissions 2019/2020 418,224 KgCO2e
Carbon Intensity (per person) 1,504 KgCO2e

Methodology

Energy consumption was obtained from monthly meter readings or energy supplier invoices. Where practical, this covers the period 1 October 2019 to 30 September 2020, but if this has not been possible (due to invoicing dates) the nearest 12 month period available has been used.

Transport emissions have been calculated with data including:

Conversion factors used were obtained from two sources:

OUR PRIORITIES 43

FINANCIAL REVIEW

The Trustees are pleased to report that despite a challenging year, the deficit for the Group was reduced from £5.1 million in 2019 to £4.3 million in 2020. Whilst this reflects a financial improvement, this is still a significant deficit that the Trustees are committed to reducing. As a result, a restructuring plan was agreed prior to the year end and £800k of restructuring costs have been included in the accounts, with the restructuring carried out in October 2020. The use of Charity funds to accommodate the deficit was anticipated by the Trustees and is considered acceptable within the reserves policy as set out on pages 36 and 37.

Income

As explained on page 24, despite a strong start to the year the pandemic has had a significant impact on our income. Total income fell by £2.5 million from £26.9 million in 2019 to £24.4 million in 2020. Whilst benefitting from the support and generosity of our partners and grant givers which helped buffer some of the impact of the pandemic, fundraised income was down significantly. The results also include £1.4 million received from the Government’s Coronavirus Job Retention Scheme.

Expenditure on raising funds

Total costs of raising funds for the year were £8.4 million (2019: £10.4 million) which reflect ongoing efforts to reduce costs as outlined in the three year business plan, which commenced in 2018/19. However some of the savings realised in this year unfortunately reflect the reduced level of activity from March 2020 onwards, including our peak summer season, as Covid lockdowns and social distancing restrictions made our fundraising activities much more difficult to undertake.

Expenditure on charitable activities

Overall there was a slight increase in expenditure from £22.1 million in 2018/19 to £22.4 million in 2019/20. As with other areas, our recovery services saw a reduction in costs due to the restrictions Covid placed on us. Our recovery centres had to close in March and activities moved online swiftly to ensure we continued to provide support (see pages 7 to 9). This did lead to a number of costs savings and our Executive Team were quick to cut costs wherever possible. Offsetting that, the Charity awarded an increased level of grants in the year up from £1.2 million in 2018/19 to £3.2 million in 2019/20. This includes a commitment to fund the SBSA £2.5 million towards building a purpose built recovery centre in Poole.

Expenditure on support costs

The Group’s support costs, as set out in note four on page 56 have once again reduced in comparison to the previous year. This is due to a continuing focus on efficiency and savings that have been made in all support areas. Again, where appropriate, activities linked to our fundraising were scaled back where necessary in response to the pandemic. However, support functions continue to be a vital part of the Charity, ensuring we can continue to raise funds and deliver against our charitable objects.

The needs of our wounded veterans and their families continue to grow and we must recruit and retain qualified individuals who can design, deliver, support and fund the recovery services we provide. We pay competitive salaries and benchmark ourselves to make sure we do this.

Net gains on investment

Net gains on investment at £2 million are £1.5 million above those of the 2018/19 financial year. This was a turbulent year for investments with significant fluctuations in values as the impact of Covid-19 was felt around the world. Trustees monitor investment performance throughout the year and investment performance is reviewed in more detail on page 37.

Capital expenditure

Capital expenditure continues to be low at £0.1 million (2019: £0.1 million). This reflects or on-going focus towards delivery of direct services.

Going Concern

The Board of Trustees have reviewed budgets and forecasts prepared to 30 September 2021 which consider Help for Heroes activities, financial position and risk management polices together with likely factors affecting future development, including impact of the pandemic and other operating challenges on income, cash, reserves and delivery of its activities.

Specifically, the Board has approved a transformation plan which includes measures to reduce costs and generate efficiencies across the Charity’s core activities following a strategic review in the year. Forecasts have been prepared for a range of scenarios and the Directors have considered in depth the scenario which they believe will most likely occur. The Board has concluded that the existing level of free reserves and available cash coupled with strong cost control and oversight of the transformation programme are sufficient to ensure Help for Heroes has the resources to continue

operating as a going concern. On this basis, the Board have concluded that there are no material uncertainties surrounding the Charity’s ability to continue as a going concern for the foreseeable future and the accounts have been prepared on that basis.

44 OUR PRIORITIES

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

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

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

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, Charities SORP 2015, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the Charity’s constitution. They are also responsible for safeguarding the assets of the Charity and the Group, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each of the Trustees at the date of this report is aware:

Approval

The Trustees’ Report, incorporating the Strategic and Directors’ Report, was approved by the Board of Trustees on 22 April 2021 and signed on it’s behalf by:

Nigel Boardman Chairman, Help for Heroes

22 April 2021

OUR PRIORITIES 45

FINANCIAL STATEMENTS AND AUDITOR’S REPORT

46 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF HELP FOR HEROES

Opinion

We have audited the financial statements of Help for Heroes for the year ended 30 September 2020 which comprise the Consolidated Statement of Financial Activities, Consolidated and Charity Balance Sheets, Consolidated Statement of Cash Flow and notes to the financial statements, 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:

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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you, where:

Other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 47

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 require us to report to you if, in our opinion:

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

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.

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

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with chapter three of part 16 of the Companies Act 2006, and to the charitable company’s Trustees, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company’s members and Trustees 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, the charitable company’s members as a body and the charitable company’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Tim Redwood Senior Statutory Auditor

Date: 17 May 2021

For and on behalf of Crowe U.K. LLP Statutory Auditor London

48 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

For the year ended 30 September 2020 (incorporating an income and expenditure account)

----- Start of picture text -----
2020 2020 2020 2020 2019
General Designated Restricted Total Total
funds funds funds funds Funds
Notes £’000 £’000 £’000 £’000 £’000
Income from
Donations and legacies 2 13,757 - 7,802 21,559 22,260
Charitable activities 106 - - 106 694
Other trading activities 2,111 - - 2,111 3,058
Investments 492 - - 492 628
Other 150 - - 150 215
Total 16,616 - 7,802 24,418 26,855
Expenditure on
Raising funds 3 8,328 60 - 8,388 10,406
Charitable activities 8 13,424 6,420 2,571 22,415 22,074
Total 21,752 6,480 2,571 30,803 32,480
Net income/(expenditure) before gains
(5,136) (6,480) 5,231 (6,385) (5,625)
and losses on investments
Net gains/(losses) on investments 11 2,044 - - 2,044 509
Net income/(expenditure) 5 (3,092) (6,480) 5,231 (4,341) (5,116)
Transfers between funds 15 8,442 (8,442) - - -
Net movement in funds 5,350 (14,922) 5,231 (4,341) (5,116)
Reconciliation of funds
Total funds brought forward 15 12,140 73,779 544 86,463 91,579
Total funds carried forward 15 17,490 58,857 5,775 82,122 86,463
----- End of picture text -----

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 49

CONSOLIDATED AND CHARITY BALANCE SHEETS Company Number 6363256

As at 30 September 2020

----- Start of picture text -----
2020 2020 2019 2019
Notes Group Charity Group Charity
£’000 £’000 £’000 £’000
Fixed assets
Intangible assets 9 101 68 112 79
Tangible assets 10 36,256 37,013 40,167 40,923
Investments 11 27,939 27,939 25,831 25,831
64,296 65,020 66,110 66,833
Current assets
Stock 350 - 468 -
Debtors 13 2,203 2,454 2,341 3,093
Investments 15,051 15,051 - -
Cash at bank and in hand 9,188 8,626 21,698 21,142
Current liabilities
Creditors: amounts falling due within one year 14 (8,224) (7,967) (3,965) (3,657)
Net current assets 18,568 18,164 20,542 20,578
Total assets less current liabilities 82,864 83,184 86,652 87,411
Creditors: amounts falling due
14 (742) (302) (189) (189)
after more than one year
Net assets 82,122 82,882 86,463 87,222
Funds
Restricted funds 15 5,775 5,775 544 544
Unrestricted funds
Designated funds 15 58,857 59,581 73,779 74,502
General fund 15 17,490 17,526 12,140 12,176
Total funds 82,122 82,882 86,463 87,222
----- End of picture text -----

The Charity’s deficit for the year was £4,340K.

The financial statements on pages 49 to 71 were approved and authorised for issue by the Trustees on 22 April 2021 and signed on their behalf by:

Nigel Boardman, Chair of Trustees, Help for Heroes Date: 22 April 2021

50 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

CONSOLIDATED STATEMENT OF CASH FLOW

For the year ended 30 September 2020

----- Start of picture text -----
2020 2019
Group Group
£’000 £’000
Cash flows from operating activities:
Net cash provided/(utilised) by operating activities 2,353 (4,055)
Cash flows from investing activities
Dividends and interest from investments 245 228
Proceeds from the sale of property, plant and equipment 14 6
Purchase of tangible and intangible assets (71) (154)
Proceeds from sale of investments - 5,000
Transfer to short term deposits (15,051) -
Net cash (utilised)/provided by investing activities (14,863) 5,080
Change in cash and cash equivalents/net debt in the reporting period (12,510) 1,025
Cash and cash equivalents/net debt at the beginning of the reporting period 21,698 20,673
Cash and cash equivalents/net debt at the end of the reporting period 9,188 21,698
Reconciliation of net income/(expenditure)
to net cash flow from operating activities
Net expenditure for the reporting period
(4,341) (5,116)
(as per the statement of financial activities)
Adjustments for:
Depreciation charges 3,993 4,068
(Gains)/losses on investments (2,044) (509)
Dividends and interest from investments (492) (628)
Management charges deducted from investments 250 273
Profit on the sale of fixed assets (14) (1)
(Increase)/decrease in stock 118 122
(Increase)/decrease in debtors 71 (68)
Increase/(decrease) in creditors 4,812 (2,196)
Net cash provided/(utilised) in operating activities 2,353 (4,055)
----- End of picture text -----

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 51

NOTES TO THE FINANCIAL STATEMENTS

1. ACCOUNTING POLICIES

Accounting convention

The Charity is a public benefit entity, its status and registered office are noted on page 35.

The Board of Trustees have reviewed budgets and forecasts prepared to 30 September 2021 which consider Help for Heroes activities, financial position and risk management polices together with likely factors affecting future development, including impact of the pandemic and other operating challenges on income, cash, reserves and delivery of its activities. Specifically, the Board has approved a transformation plan which includes measures to reduce costs and generate efficiencies across the Charity’s core activities following a strategic review in the year. Forecasts have been prepared for a range of scenarios and the Directors have considered in depth the scenario which they believe will most likely occur. The Board has concluded that the existing level of free reserves and available cash coupled with strong cost control and oversight of the transformation programme are sufficient to ensure Help for Heroes has the resources to continue operating as a going concern. On this basis, the Board have concluded that there are no material uncertainties surrounding the Charity’s ability to continue as a going concern for the foreseeable future and the accounts have been prepared on that basis.

The Group accounts have been prepared under the historical cost convention as modified by the revaluation of investments. They comply with the Statement of Recommended Practice ‘Accounting and Reporting by Charities’ effective 1 January 2015 (the SORP), together with the reporting requirements of the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102) - effective 1 January 2015, the Companies Act 2006, and the Charities and Trustee Investment (Scotland) Act 2005. The Charity has adapted the Companies Act formats to reflect the SORP and special nature of the Charity’s activities.

Critical accounting estimates and judgements

In the application of the Group’s accounting policies, which are described in this note, Trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant.

Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period.

Significant areas of estimate and judgement include the remaining useful life of assets, carrying value and treatment of tax connected to Help for Heroes recovery centres. The Trustees have considered the expected future use of Help for Heroes recovery centres and other fixed assets and the expectations for future use. They have concluded that there is no impairment connected to these assets as at 30 September 2020 and the current remaining useful economic lives remain appropriate. The Trustees have also considered the treatment of VAT incurred on the construction of the recovery centres and where they consider the existence of a legal obligation is probable then the resulting liability is recorded in creditors.

Other significant areas of estimate and judgement include the recognition of contract and grant income, the valuation of gifts in kind, the period in which legacy income should be recognised and the period in which a liability for termination payments should be made. In determining the recognition of contract and grant income the Trustees consider the principles of entitlement, measurement and probability of receipt. Consideration is given to any performance conditions and the recoverability of any balances

outstanding at the end of the year. Gifts in kind and donated services are recognised at the Trustees’ best estimate of the value to the Charity and recorded in income and expenditure. In terms of legacy recognition, where there is no evidence that a legacy distribution was authorised by executors prior to the balance sheet then that distribution is recorded in the subsequent year but disclosed as a contingent asset within the legacy pipeline disclosure. A liability for termination payments is recognised taking into consideration the date and form of any connected announcement.

Basis of consolidation

The accounts are consolidated on a line by line basis and incorporate the results of Help for Heroes (the Charity); its subsidiary undertakings Help for Heroes Trading Limited, Help for Heroes Development Company Limited and Help for Heroes Recovery. Help for Heroes Trading has one subsidiary undertaking being BMyHero Limited, also consolidated. The consolidated entity is referred to as ‘the Group’. A separate Statement of Financial Activities is not presented for the Charity itself as it has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006. Further details regarding subsidiaries are shown in note 12 on page 64.

Fund accounting

General funds are funds which are expendable at the discretion of the Trustees in furtherance of the objects of the charities. Designated funds represent funds that have been earmarked by the Trustees for specific purposes and are therefore held separately from general unrestricted funds. Details of designated funds are provided in note 15 on page 66.

Restricted funds represent donations which are restricted by the donor to a specific purpose.

52 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

Income

Income from donations, grants and other sources is recognised on an accruals basis and included in the Statement of Financial Activities (SOFA) when the Group is entitled to the income, when receipt is probable, and when it can be measured reliably.

Legacies subject to a life interest by another party will not be recognised. Pecuniary legacies will be recognised when the legacy is received or where there is sufficient evidence that receipt is probable. Residuary legacies are recognised at the earlier of cash received or notification of an interim distribution or estate accounts having been approved by the executors.

Gifts in kind and donated services and facilities are recognised in the financial statements at fair value.

Donated services represents gifts and facilities received from third parties for use by the Charity in furtherance of its charitable activities.

In 2019/20 significant elements of donated services included services for use by beneficiaries such as training and well-being courses and classes in addition to professional services such as legal advice provided to the Charity. These are valued at fair value.

Assets given for use by the Group are recognised as incoming resources and within the relevant fixed asset category of the balance sheet when received. Donated services and facilities recognised in the financial statements include those usually provided by an individual or entity as part of their trade or profession for a fee. In contrast, the contribution of volunteers is excluded from the SOFA as the value of their contribution to the Charity cannot be reasonably quantified in financial terms. Where donated services or facilities are recognised, an equivalent amount is included as expenditure under the appropriate heading in the SOFA.

Expenditure

All expenditure, including termination payments relating to former employees, is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Support costs are allocated on the basis of staff time and include finance, human resources, IT, marketing, administration, and governance costs. Whilst the methodology for the allocation has not changed, the percentages allocated are updated annually to reflect changes in operations and staffing. This does not impact the comparative allocations.

Governance costs include costs associated with the governance arrangements of the Charity including external audit and costs of complying with constitutional and statutory requirements, such as professional fees and Trustees’ liability insurance. Irrecoverable VAT is not separately analysed and is charged to the SOFA when the expenditure to which it relates is incurred and is allocated as part of the expenditure to which it relates.

Expenditure on raising funds

Expenditure on raising funds includes all of the costs attributable to raising voluntary income, event fees, and all costs incurred in the trading subsidiaries.

Expenditure on charitable activities

This comprises grants made, recovery delivery and championing the wounded.

Grants made are commitments made to third parties in the furtherance of the charitable objectives of the Charity.

Single or multi-year grants are accounted for when approved by the Charity and committed to the recipient, less any awards cancelled or refunded.

Recovery delivery costs are the costs incurred in delivering services directly to beneficiaries. This includes the running costs of the recovery centres and related activities.

Championing the wounded costs are those costs incurred in raising awareness and representing the needs of the wounded, injured and sick.

Support costs are allocated to the cost of grants, recovery delivery and championing the wounded based on staff time.

Stock

The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. Year end stock is valued at the lower of cost or net realisable value.

Income from the sale of goods and services is recognised in the year of sale or to the extent that the service was delivered during the year. Income from dividends and interest is recognised in the financial statements during the year it is earned by the Group.

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 53

Tangible fixed assets

Tangible fixed assets are held at cost. Items in excess of £5,000 are capitalised and written off evenly over their useful economic life. The following rates are being applied:

Pension costs

The Group contributes to a money purchase pension plan on behalf of employees in compliance with auto-enrolment legislation. Costs are expensed in the period in which they are incurred.

Leasehold property improvements

Structural works are depreciated until the expiry of the lease, or the first breakpoint not at the sole discretion of the Group, or the expiry of 20 years.

Non-structural works connected to bringing the leasehold property into working use are depreciated over 10 or 15 years.

Office equipment (including IT)

Five years

Plant and machinery

Five years

Vehicles

Four years

Investments

Fixed asset investments are included at market value at the balance sheet date.

Gains and losses arising on the disposal of fixed asset investments and the revaluation to market value are charged or credited to the SOFA in the year.

Currency

The functional currency of the Group is sterling.

Financial Instruments

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

Financial assets measured at amortised cost comprise of cash at bank and in hand together with trade debtors, other debtors, and current asset investments, excluding prepayments.

Financial liabilities measured at amortised cost comprise all creditors excluding deferred income and tax and social security balances outstanding at year end.

Fixed asset investments are held at fair value at the balance sheet date with gains and losses being recognised in the SOFA.

Current asset investments relate to short term cash deposits which have a maturity of more than three months. They are included at the initial transaction value at the balance sheet date.

Leases

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis.

Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

54 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

2. DONATIONS AND LEGACIES

2020
Total
funds
£’000
2019
Total
funds
£’000
Grants* 8,270
3,535
Donations 4,832
5,827
Legacies 6,686
9,038
Challenges and events 835
2,380
Donated services and facilities 630
1,106
Gift Aid receivable 306
374
Total 21,559
22,260

3. EXPENDITURE ON RAISING FUNDS

----- Start of picture text -----
2020 2019
Group Group
£’000 £’000
Cost of donations and legacies 3,761 4,637
Cost of trading activities 1,955 2,303
Investment management costs 314 314
Support costs 2,358 3,152
Total 8,388 10,406
----- End of picture text -----

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 55

4. ALLOCATED SUPPORT COSTS

Support costs have been allocated to SOFA categories as shown below

A) 2020 allocated support costs

Charitable activities
Raising funds
£’000
Grants
£’000
Recovery
delivery costs
£’000
Championing
the wounded
£’000
2020
Total
£’000
Administration,
legal and management		 1,399
5
965
668
3,037
Finance 170 17
179
-
366
Information technology 508 12
555
21
1,096
Human resources 210 32
392
-
634
Governance costs 71 -
71
59
201
Total 2,358 66
2,162
748
5,334

B) 2019 allocated support costs

Charitable activities
Raising funds
£’000
Grants
£’000
Recovery
delivery costs
£’000
Championing
the wounded
£’000
2019
Total
£’000
Administration,
legal and management		 1,749 4
1,057
955
3,765
Finance 253 16
293
14
576
Information technology 642 12
729
20
1,403
Human resources 394 44
636
-
1,074
Governance costs 114 -
114
93
321
Total 3,152 76
2,829
1,082
7,139

The basis of the allocation is staff time.

56 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

5. NET INCOME FOR THE YEAR

2020
Group
£’000
2019
Group
£’000
This is stated after charging:
Depreciation for the year 3,963
4,050
Amortisation for the year 30
18
(Profit)/loss on disposal (14)
(1)
Rentals payable under operating leases
- Land and buildings 372
369
- Equipment 22
30
- Vehicles 64
77
Auditor’s remuneration
- Audit services 40
39
- Non-audit services 5
8

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 57

6. EMPLOYEE COSTS

----- Start of picture text -----
2020 2019
Group Group
£’000 £’000
Wages and salaries 11,670 11,684
Social security 1,140 1,188
Pension 416 387
Total 13,226 13,259
----- End of picture text -----

The average number of employees (headcount) employed by the Group during the year was 331 (2019: 356).

The number of employees during the year whose gross pay and benefits (excluding payments in respect of leaving the Charity), fell within the following bands was:

Remuneration of higher paid staff

Remuneration of higher paid staff
2020
Group
2019
Group
£60,001 - £70,000 6
8
£70,001 - £80,000 6
3
£80,001 - £90,000 -
3
£90,001 - £100,000 2
3
£100,001 - £110,000 1
2
£110,001 - £120,000 1
-
£120,001 - £130,000 -
1

Pension contributions of £48,255 (2019: £56,366) were made on their behalf. Taxable remuneration for the year includes benefits in kind.

During the year, the Charity made payments in respect of staff leaving the Charity totalling £1,060,768 (2019: £123,623), including redundancy payments. All amounts were accounted for in the year.

The key management personnel of Help for Heroes comprise the Trustees and the Executive Team. The total remuneration including benefits in kind, employers pension contributions, employers National Insurance contributions and termination payments paid to and on behalf of the Executive Team amounted to £879,060 (2019: £1,107,100).

Trustees received no employee benefits during the period and the prior period.

58 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

7. GOVERNANCE COSTS

2020
Group
£’000
2019
Group
£’000
External and internal audit 82
111
Recruitment 29
28
Company secretarial, finance and accounts production 60
74
Trustees’ liability insurance 2
3
Strategy 3
73
Other 25
32
Total 201
321

The Group reimbursed travel expenses of £1,034 (2019: £5,066) to 1 (2019: 5) Trustees for attendance at Trustee meetings. Of this Nil (2019: Nil) remained outstanding at year end.

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 59

8. EXPENDITURE ON CHARITABLE ACTIVITIES

----- Start of picture text -----
Grants made 2020 2019
Group Group
Institutional grants £’000 £’000
SBSA (to contribute towards building a purpose built recovery centre in Poole) 2,500 -
Mission Motorsport - 97
Not Forgotten Association - 50
RFEA 90 134
Sporting Force - 70
Grant commitments released (272) (328)
Other institutional grants 7 33
Total institutional grants 2,325 56
Individual support 496 703
Total grants 2,821 759
Direct costs 320 319
Allocated support costs 66 76
Total grant expenditure 3,207 1,154
Recovery delivery costs
Recovery regional operations 7,726 8,062
National services 2,522 3,423
Other direct costs 1,496 721
Allocated support costs 2,162 2,829
Depreciation 3,868 3,966
Total recovery delivery costs 17,774 19,001
Championing the wounded
Direct costs 686 837
Allocated support costs 748 1,082
Total championing the wounded costs 1,434 1,919
Total costs of charitable activities 22,415 22,074
----- End of picture text -----*

60 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

9. INTANGIBLE FIXED ASSETS

----- Start of picture text -----
Group Charity
Computer software £’000 £’000
Cost or valuation
At 1 October 2019 595 560
Additions during the year 19 12
Disposals during the year (1) (1)
At 30 September 2020 613 571
Amortisation
At 1 October 2019 (483) (481)
Charge for the year (30) (23)
Disposals for the year 1 1
At 30 September 2020 (512) (503)
Net book value at 30 September 2020 101 68
Net book value at 1 October 2019 112 79
----- End of picture text -----

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 61

10. TANGIBLE FIXED ASSETS

----- Start of picture text -----
Leasehold
Group property Office Plant and
improvements equipment machinery Vehicles Total
Cost £’000 £’000 £’000 £’000 £’000
At 1 October 2019 64,748 5,646 680 130 71,204
Additions during the year 24 1 18 9 52
Disposals during the year - (13) (41) - (54)
Transfers (99) 99 - - -
At 30 September 2020 64,673 5,733 657 139 71,202
Depreciation
At 1 October 2019 (24,978) (5,483) (455) (121) (31,037)
Charge for the year (3,743) (148) (67) (5) (3,963)
Disposals for the year - 13 41 - 54
Transfers - - - - -
At 30 September 2020 (28,721) (5,618) (481) (126) (34,946)
Net book value at 30 September 2020 35,952 115 176 13 36,256
Net book value at 1 October 2019 39,770 163 225 9 40,167
Leasehold
Charity property Office Plant and
improvements equipment machinery Vehicles Total
Cost £’000 £’000 £’000 £’000 £’000
At 1 October 2019 65,925 5,836 681 130 72,572
Additions during the year 6 - 18 9 33
Disposals during the year - (8) (41) - (49)
Transfers - - - - -
At 30 September 2020 65,931 5,828 658 139 72,556
Depreciation
At 1 October 2019 (25,400) (5,672) (456) (121) (31,649)
Charge for the year (3,819) (52) (67) (5) (3,943)
Disposals for the year - 8 41 - 49
Transfers - - - - -
At 30 September 2020 (29,219) (5,716) (482) (126) (35,543)
Net book value at 30 September 2020 36,712 112 176 13 37,013
Net book value at 1 October 2019 40,525 164 225 9 40,923
----- End of picture text -----

62 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

11. INVESTMENTS: GROUP AND CHARITY

----- Start of picture text -----
2020 2019
£’000 £’000
Market value at 1 October 25,831 30,196
Add: Dividends and interest received and reinvested 314 399
-
Less: sales proceeds (5,000)
Add: net gain on revaluation 2,044 509
Investment charges deducted from gain (250) (273)
Market value at 30 September 27,939 25,831
Historic cost as at 30 September 23,850 22,484
2020 2019
Market value at 30 September £’000 £’000
Equities 13,802 12,893
Fixed interest 12,215 9,773
Forwards 200 47
Cash 1,722 3,118
Total 27,939 25,831
----- End of picture text -----

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 63

12. INVESTMENTS IN SUBSIDIARIES

Name Control
Charity
interest
Other Group
companies
interest
Registered
number
Activities
Help for Heroes Trading Ltd Share
capital
100%
-
06380957
Retail and corporate
licensing
Help for Heroes Recovery Deemed
100%
-
07647921
Non-trading
Help for Heroes Development
Company Ltd		 Share
capital
100%
-
07464349
Design and build
BMY Hero Ltd Share
capital
-
100%
07192143
Non-trading

The results of consolidated trading entities are stated prior to any consolidation adjustments. The registered office address of all subsidiaries is 14 Parkers Close, Downton Business Centre, Downton, Salisbury, Wiltshire, SP5 3RB.

Help for Heroes Recovery and BMY Hero Ltd are dormant and have no assets or liabilities.

Turnover 2020
Help for Heroes
Trading
£’000
2020
Help for Heroes
DevCo
£’000
2019
Help for Heroes
Trading
£’000
2019
Help for Heroes
DevCo
£’000
2,111
-
3,058
(7)
Expenditure (2,111)
-
(3,058)
7
Net income -
-
-
-

Balance sheets of the consolidated trading entities

Assets 2020
Help for Heroes
Trading
£’000
2020
Help for Heroes
DevCo
£’000
2019
Help for Heroes
Trading
£’000
2019
Help for Heroes
DevCo
£’000
1,024
26
1,046
163
Liabilities (1,023)
(26)
(1,045)
(163)
Net assets 1
-
1
-

64 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

13. DEBTORS

----- Start of picture text -----
2020 2020 2019 2019
Group Charity Group Charity
£’000 £’000 £’000 £’000
Trade debtors 451 423 473 405
Other debtors 545 496 169 128
Amounts owed from Group undertakings - 353 - 901
Prepayments and accrued income 1,207 1,182 1,699 1,659
Total 2,203 2,454 2,341 3,093
----- End of picture text -----

A proportion of legacies receivable may be received after more than one year, but this figure cannot be determined with any accuracy due to the inherent uncertainty in the timing of legacy income receipt.

The estimated value of legacies notified but neither received nor included in income is £5,162,592 (2019: £4,177,383). This amount has been treated as a contingent asset, which is not recognised in debtors above.

Help for Heroes has provided grants to individuals to enable them to purchase or adapt housing. Should the properties be disposed of in the future Help for Heroes is entitled to the granted funds being returned. This amount has been treated as a contingent asset, which is not recognised in debtors above.

The balance which may be returned is £1,710,000 (2019 - £1,860,000).

14. CREDITORS

----- Start of picture text -----
2020 2020 2019 2019
Amounts falling due within one year Group Charity Group Charity
£’000 £’000 £’000 £’000
Grants payable 2,745 2,745 956 956
Trade creditors 407 221 714 656
Other creditors 784 782 791 789
Other taxes and social security 2,375 2,366 330 317
Accruals 1,913 1,853 1,174 939
Total 8,224 7,967 3,965 3,657
2020 2020 2019 2019
Amounts falling due after more
Group Charity Group Charity
than one year £’000 £’000 £’000 £’000
Grants payable 56 56 189 189
Accruals 686 246 - -
Total 742 302 189 189
----- End of picture text -----

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 65

15. FUNDS

(A) Analysis of movement in funds

----- Start of picture text -----
Group At 1 Oct Incoming Operating Capital At 30
2019 resources expenditure expenditure Transfers Sep 2020
Restricted £’000 £’000 £’000 £’000 £’000 £’000
Catterick Recovery Centre 71 820 (891) - - -
Colchester Recovery Centre 22 3 (3) - - 22
Tedworth House Recovery Centre 24 405 (429) - - -
Plymouth Recovery Centre - 404 (404) - - -
Sports Recovery 31 110 (10) - - 131
Hidden Wounds - 150 (150) - - -
Very Seriously Injured (LIBOR) 371 568 (350) - - 589
Psychological Wellbeing - 67 - - - 67
Headley Court - 5,119 (211) - - 4,908
Other 25 156 (123) - - 58
Total restricted 544 7,802 (2,571) - - 5,775
Designated
Recovery Fund 24,000 - - - (8,000) 16,000
Capital Fund 6,500 - - - - 6,500
Recovery Projects 3,000 - (2,500) - (500) -
Sub total 33,500 - (2,500) - (8,500) 22,500
Fixed assets 40,279 - (3,980) 71 (13) 36,357
Total designated 73,779 - (6,480) 71 (8,513) 58,857
General 12,140 18,660 (21,752) (71) 8,513 17,490
Total funds 86,463 26,462 (30,803) - - 82,122
----- End of picture text -----*

At the year end the Trustees consider the required level of funds in line with the reserves policy (described on page 36) and anticipated future running costs and other spending. Changes are made to each designated reserve as appropriate. The nature and purpose of each fund and the rational for significant transfers is explained on page 36. Our fund accounting policy is described in note one on page 52.

66 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

15. FUNDS

(B) Analysis of net assets between funds

----- Start of picture text -----
Group 2020
Unrestricted Designated Restricted Total
Fixed assets £’000 £’000 £’000 £’000
Intangible assets - 101 - 101
Tangible assets - 36,256 - 36,256
Investments 5,439 22,500 - 27,939
5,439 58,857 - 64,296
Net current assets 12,793 - 5,775 18,568
Creditors falling due after more
(742) - - (742)
than one year
Total net assets 17,490 58,857 5,775 82,122
----- End of picture text -----

16. OPERATING LEASES

At 30 September 2020 the Group had future minimum operating lease commitments under non-cancellable operating leases:

----- Start of picture text -----
2020 2019
Group Group
£’000 £’000
Land and buildings
Within one year 237 325
Between one and five years - 191
Total 237 516
2020 2019
Group Group
£’000 £’000
Equipment
Within one year 18 22
Between one and five years - 18
Total 18 40
2020 2019
Group Group
£’000 £’000
Vehicles
Within one year 49 44
Between one and five years 45 66
Total 94 110
----- End of picture text -----

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 67

17. COMPARATIVE INFORMATION

Consolidated statement of financial activities

2019 2019 2019 2019
General Designated Restricted Total
funds funds funds funds
£’000 £’000 £’000 £’000
Income from
Donations and legacies 17,468 - 4,792 22,260
Charitable activities 148 - 546 694
Other trading activities 3,058 - - 3,058
Investments 628 - - 628
Other 215 - - 215
Total 21,517 - 5,338 26,855
Expenditure on
Raising funds 10,348 58 - 10,406
Charitable activities 12,648 4,007 5,419 22,074
Total 22,996 4,065 5,419 32,480
Net income/(expenditure) before gains
and losses on investments		 (1,479) (4,065) (81) (5,625)
Net gains/(losses) on investments 509 - - 509
Net income/(expenditure) (970) (4,065) (81) (5,116)
Transfers between funds 6,353 (6,353) - -
Net movement in funds 5,383 (10,418) (81) (5,116)
Reconciliation of funds
Total funds brought forward
as previously stated		 13,059 84,197 625 97,881
Prior year adjustment (6,302) - - (6,302)
Total funds brought forward
as restated		 6,757 84,197 625 91,579
Total funds carried forward 12,140 73,779 544 86,463

68 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

18. COMPARATIVE INFORMATION

(A) Analysis of movement in funds

Group
Restricted		 As restated
At 1 Oct
2018
£’000
Incoming
resources*
£’000
Operating
expenditure
£’000
Capital
expenditure
£’000
Transfers
£’000
At 30 Sep
2019
£’000
Catterick Recovery Centre 203
2,205
(2,337)
-
-
71
Colchester Recovery Centre 47
(3)
(22)
-
-
22
Tedworth House Recovery Centre -
1,009
(985)
-
-
24
Plymouth Recovery Centre -
403
(403)
-
-
-
Sports Recovery (Tough Mudder) -
108
(108)
-
-
-
Sports Recovery 35
117
(121)
-
-
31
Hidden Wounds -
25
(25)
-
-
-
Very Seriously Injured (LIBOR) 338
474
(441)
-
-
371
Recovery Services -
254
(254)
-
-
-
Psychological Wellbeing -
10
(10)
-
-
-
Invictus Games** -
569
(569)
-
-
-
Other 2
95
(72)
-
-
25
Total restricted 625
5,338
(5,419)
-
-
544
Designated
Recovery Centres 19,000
-
-
-
(19,000)
-
Recovery Services 10,000
-
-
-
(10,000)
-
Recovery Fund -
-
-
-
24,000
24,000
Capital Fund 6,500
-
-
-
-
6,500
Recovery Projects 4,500
-
-
-
(1,500)
3,000
Sub total 40,000
-
-
-
(6,500)
33,500
Fixed assets 44,197
-
(4,065)
154
(7)
40,279
Total designated 84,197
-
(4,065)
154
(6,507)
73,779
General 6,757
22,026
(22,996)
(154)
6,507
12,140
Total funds 91,579
27,364
(32,480)
-
-
86,463

** Including £300,000 Armed Forces Covenant Fund Trust funding.

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 69

18. COMPARATIVE INFORMATION

(B) Analysis of net assets between funds

----- Start of picture text -----
Group 2019
Unrestricted Designated Restricted Total
Fixed assets £’000 £’000 £’000 £’000
Intangible assets - 112 - 112
Tangible assets - 40,167 - 40,167
Investments - 25,831 - 25,831
- 66,110 - 66,110
Net current assets 12,329 7,669 544 20,542
Creditors falling due after more than
(189) - - (189)
one year
Total net assets 12,140 73,779 544 86,463
----- End of picture text -----

70 FINANCIAL STATEMENTS AND AUDITOR’S REPORT

19. RELATED PARTY TRANSACTIONS

Transactions between Group companies

During the year, significant numbers of transactions took place between Group companies. Most of these transactions were effected through intra-Group working capital.

Profits earned by trading subsidiaries were donated to the parent Charity as described below.

In the normal course of operations, transactions arise between Group companies. These amounts cover donations received in the trading companies, purchases settled by other Group companies, stock sold by one company on behalf of another, and VAT settled across the Group VAT registration.

Other related party transactions

No Trustees have been remunerated for their role as a Trustee.

As a charity, Help for Heroes cannot recover VAT and the costs of related party transactions therefore include irrecoverable VAT where appropriate. The sales value to the related party may therefore be less.

During the year Help for Heroes was charged an annual subscription of £9,950 (2019: £9,850) by COBSEO - The Confederation of Service Charites (COBSEO).

During the year Mel Waters was both the CEO of Help for Heroes and a director of COBSEO.

During the year Help for Heroes was charged £35,700 (2019: £Nil) by ARL Partners Limited for the provision of a mental health assessment platform. One of the directors of ARL Partners Limited is the partner of Mel Waters.

During the year Help for Heroes was charged Nil (2019: £43,128) by the University of Bath for hosting Invictus Games training camps and trials.

At 30 September 2020 the Group owed Nil (2019: £33,431) in respect of these charges. During the year Professor Veronica Hope Hailey was both a Help for Heroes Trustee and the Vice President of the University of Bath.

During the year Help for Heroes issued a grant of £2,500,000 (2019: £Nil) to Special Boat Service Association (SBSA). At 30 September 2020 the Group owed £2,500,000 in respect of this grant. During the year Roderick Dunn was a Trustee of both Help for Heroes and the SBSA. Due to the conflict of interest he did not take part in meetings or votes where this grant was discussed and agreed.

FINANCIAL STATEMENTS AND AUDITOR’S REPORT 71

THANK YOU

We would like to take this opportunity to thank the people and organisations who make our vital work possible by generously giving their time and money.

Particular thanks goes to our partners who have made significant contributions throughout the year:

Corporate Partnerships

ACS Clothing

Alf Turner

Amazon Smile

BAE Systems

Barclays UK Sourcing and Supplier Management

CCA Occasions

Cotton Traders Limited

Debenhams

Design Source Supply Limited

Frederic Robinson Ltd

Hockey for Heroes

Kinnerton Confectionery Company Limited

Lovells Sports Ltd

Mace Military Network

Moto in the Community

Noel Tatt/Impress Publishing

Otter House Limited

Palantir

Stonegate Pub Company

Strategic Shipping Company Limited

Superdry

Team Army Sports Foundation

Team Ethos

Tile Giant

Vodafone UK Limited

WHSmith

WiSP Balm

Tetra Tech

Trusts, Foundations and Philanthropic Partnerships

Armed Forces Covenant Fund Trust

Brian Wilson Charitable Trust

Charles Wolfson Charitable Trust

Headley Court Charity

Intrepid Relief Fund

Inverforth Charitable Trust

James Milner Foundation

Ms D Ryle

Plowright Charitable Trust

Royal Foundation of The Duke and Duchess of Cambridge and Endeavour Fund

Stratton No. 2 Charitable Fund

The Chancellor (using LIBOR Funds)

The Lund Trust

The Rockley Charitable Trust

UPS Foundation

Wasps Legends Charitable Foundation

Mable Harper Charitable Trust

Polypipe

Michael Doerr of The Oeno Group

Royale Life

Speedo

St James’s Place Wealth Management

Moodie Charitable Trust

Mr A Smith

Mr and Mrs Robert and Tanya Lewis

72

Picture credits:

p4–5 Beneficiary image – Theo Cohen p9 Beneficiary image – Tom & Steve p18–19 Beneficiary images – Tom & Steve p20–21 Theo Cohen p22 Theo Cohen Inside back cover Theo Cohen

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Help for Heroes, 14 Parkers Close, Downton Business Centre, Salisbury, Wiltshire SP5 3RB

Published by Help for Heroes, a charity registered in England and Wales (1120920) and Scotland (SC044984), and limited company registered in England (6363256).