£15 million - that's the pre-tax profit enjoyed by A4e last year, up by a third on the previous year. Revenue increased from £190.1m to £234.3m, and it was the company's most successful year ever. "Welfare to work" contracts account for about half of that.
Has the tax-payer had £234.3m worth of value?
NO, is the answer to that question
ReplyDeleteFirst reaction. Compared to the revenue, the pre tax profit is surely quite low?
ReplyDeleteIt's about 6.4%, which is more than Emma Harrison said publicly was their profit margin.
ReplyDeleteDo you know whether 6.4% actually is a "good" return for successful companies, Historian?
ReplyDeleteIt's late and I confess to being a little confused. It strikes me that they must have had then a lot of success with The Work Programme ..... to accrue such vast revenue! ..... eh ..... ? Or is there another source? There must be as it's already been reported The Work Programme is failing!
And what have they been spending their money on? Plush, newly refurbished offices!, like Westminster, the one I attended.
Emma Harrison said they took 4%. I admit to not knowing what is considered a good return, but it sounds good to me! As I said, half of the revenue is from welfare-to-work, but not all of that will be WP.
ReplyDeleteWell if half of that is from The Work Programme then that still strikes me as successful .....
ReplyDeleteSimone.. only successful in a4e's bank account i think. Whether it has helped anyone apart from the staff at a4e we will have to see in march or april or next year when the figures are out..(or when they choose to publish it)
ReplyDelete(but) Wait a minute, Half the considerable revenue comes from results of a4e finding employment for their clients!
ReplyDeleteHowever the thread below this one talks of The Work Programme after six months already proving to be a big mistake ..... So where's the truth?
Companies House online would provide their accounts but at a fee of course ..... I'm really curious.
Are you offering to pay, Simone? Remember that these accounts cover income from contracts dating from 2009 and 2010. Not much of it will be the WP.
ReplyDeleteTheir profits appear relatively low compared to their turnover.
ReplyDeleteI suspect the is it worth 234 million question is a bad one. The question should be have they done better with that amount than the previous provider would have done?