Welcome to our 107th AGM 2013
Welcome to our Annual Conference
Hugh CrosseyChairman
Ireland Excellence Award
Staff receiving the Ireland Excellent Award at Titanic Belfast Jan 2013
John McMullanChief Executive
Social Enterprise delivering
• Total value of new contracts achieved by the Bryson Group in the last financial year.
£27.6 million
Our impact in numbers over the last 5 years
1,000,000 hours of care and support to older people helping them remain in
their own home.
17,798 homes insulated.
250,000 tonnes of materials recycled.
19,000 people helped to find a job and develop their skills.
8,600 vulnerable children and their families supported.
22,300 hours of advice and support to people seeking asylum from
across the world.
12,800 people learned new skills and enjoyed time on the River Lagan.
On a typical day we are delivering over 22,990 services to families and individuals and this short video clip
will give you a sense of the day in the life of Bryson
A day in the life of Bryson
How social enterprise can become a driver to create new jobs in a more
enterprising economy
Junior Minister OFMdFM
Jonathan Bell
Chief Operations Officer Big Society Capital
Caroline Mason
Big Society Capital
Bryson Charitable Group Annual Conference
Caroline Mason – 9th October 2013
Market Context
UNCLASSIFIED
Social enterprises
need access to new forms of
finance
This requires increasing the
supply of capital into the market,
and help in evidencing social
value.
As well as getting rid of a range of legal and financial
barriers
In essence, levelling the playing field
for social ventures
The impact is increased social
innovation, remodelling of
public services and more balanced
growth
Big Society Capital – Building the Social Investment market
HSBC Barclays
Lloyds TSB RBS
HSBC Barclays
Lloyds TSB RBS
Big Society Capital
Big Society Capital
Dormant AccountsDormant Accounts
Social Investment
Finance Intermediaries
Social Investment
Finance Intermediaries
Investors seeking to create a positive social
impact beyond financial return.
Investors seeking to create a positive social
impact beyond financial return.
Social Enterprises requiring capital to allow the organisation to grow
to scale.
Social Enterprises requiring capital to allow the organisation to grow
to scale.
£600m capital
Operating Principles
Independent Transparent Wholesale Self-sufficient
Intermediaries
InvestorInvestorInvestorInvestor
Intermediary•Bank•Fund•Social Impact Bond•Market Infrastructure
Intermediary•Bank•Fund•Social Impact Bond•Market Infrastructure
FrontlineFrontline
InvestorInvestorInvestorInvestor
FrontlineFrontline FrontlineFrontline FrontlineFrontline
Management of:•Risk assessment•Social and Financial Performance•Diversification•Reporting
Increased capacity:•Access to more pools of money•Diversity of Funding•Business support•Reporting
BSC’S role
INVESTOR
Grow the social investment intermediary market
Provide range of affordable and appropriate finance for frontline
social organisations
CHAMPION
Increase awareness + confidence in social sector and in social
investment
Work with sector to develop standardised framework for evidencing social outcomes
Big Society Capital: example commitments
Outcome/Beneficiary Approach Product Intermediaries Front Line
Education/NEET
Funding Social Sector Organisations for
Payment by Results contracts
Social Impact Bond
Employment/Long term
unemployedBusiness franchises Loan Fund
Health/Ageing and Disability
Capital raising to develop services
Charity Bond, Social Enterprise
Fund
Community/Community
Cohesion
Investment in affordable housing
and community energy generation
Specialist Funds
Investment Fund investees
Community Organisations
including Community Land Trusts
Greater Merseyside Connections
Scope
Tomorrow’s People
Triodos New Horizons
ThinkForward Social Impact / Private Equity Foundation
Franchising Works Licence Fund
Investing for Good
Nesta Impact Investing Fund
Franchisees
PURE
Community Generation Fund
Community Land & Finance
BSC Aims
Build a social investment market that supports organisations to:
•deliver social value from financial capital to become stronger and resilient and more able to effect change
•attract capital on basis of real, sustainable and proven delivery of social value
•innovate, replicate and grow new social business models (specific intervention, public service, trading model)
A strong social organisation• Mission Driven
Knows the change that it wants to make, who it serves and that can evidence that change
• Resilient
Strength and identity is shared by the Board, leaders, managers, staff and volunteers
• Sustainable
In the form of revenue streams, property, investments, diversified contracts, people, ideas and practices
• Competent
Well organised and able to marshall it’s assets
Northern Rock Foundation Third Sector Trends Study: Journeys and Destinations
A strong social sector• Turnover
– 63% of social enterprises expect their turnover to increase in the next 2 to 3 years compared to 37% SMEs
– 22% of social enterprises had a decrease in turnover compared to 31% of SMEs
– 38% of social enterprises increased their turnover compared to 29% of SMEs
• Trading– The most common source of income (32%) is trade from the general public– Almost half of all social enterprises now trade with the private sector– The proportion of trade with the public sector is increasing– 79% attracted new customers or clients
• Ethos– 30% of social enterprises state their principle trading activity as Education
and/or Employment and skills– 38% of social enterprise leaders are women and 15% are from BAME
communities– 52% actively employ people who are disadvantaged in the labour market
SEUK: State of Social Enterprise Survey 2013: The People’s Business
At their best, charities and social enterprises are already at scale, are resilient and can be very innovative
23
£156m
Turnover Activity Structure
Care services, information, products, training and research Charity with social enterprise arm
£81m Drug recovery and criminal rehabilitation interventions Charity
£193m Services and information for people with disabilities Charity
£76m Community leisure and fitness facilities Social enterpriseGreenwichLeisure
£90m Community health care services (NHS spin-out) Community Interest Company (CIC)
Many have been resilient in the
downturn
Many are highly innovative in their approach to social
issues
Org
tackles re-offending via tailor-made packages of training and peer-led support, accommodation and other services
reduces the number of children at risk of care in Essex County via targeted multi-systemic therapy to troubled families to strengthen their capacity to cope
56% of social enterprises reported an increase in turnover during the recession and are 20% more likely to survive for five years than the average UK business1
In 2011, 58% of social enterprises reported growth in the previous year whilst only 28% of SMES did2
1) NCVO, UK Civil Society Almanac (2010) 2) The Boston Consulting Group (2012) 2) SEUK, Fightback Britain (2010) 4)
Some social organisations are already at scale
and providing vital services
Opportunity
- BSC represents a significant pool of money available to be invested
- Enabling policy environment
- Change in society’s attitude towards how individuals and organisations spend and invest
- Understanding the link between evidencing social value and sustainability business
Opportunity for social organisations to grow and scale their impact
Are you seeking Social Investment?
Social Sector Organisation
Directory of Intermediarieswww.bigsocietycapital.com
Social Finance Intermediary
Online Expression of Interest www.bigsocietycapital.com
Ulster BankRichard Ramsey
Slide 28
6 years since Northern Ireland’s Wile E. Coyote moment
The ‘NICE’ Decade
The ‘RUDE’ Awakening
Have we hit bottom yet?
Slide 29
Is the Northern Ireland economy experiencing a recovery?
“Yeah, but, no but, yeah but…”
Increasingly Economists are sounding likeVicky Pollard
Slide 30
NI recovery underway in terms of output…
Private Sector Business Activity - PMIs
30
35
40
45
50
55
60
65
Aug-04 Feb-06 Aug-07 Feb-09 Aug-10 Feb-12 Aug-13
NI UK RoI
Source: Markit & Ulster Bank NI PMI50 = threshold between expansion / contraction
Expansion
Contraction
**PMI Surveys Exclude Agriculture & Public Sector**
Slide 31
…and in terms of employment
NI & UK Full-Time Annual Employment Growth Employee Jobs
-15%
-10%
-5%
0%
5%
10%
Jun-93 Dec-95 Jun-98 Dec-00 Jun-03 Dec-05 Jun-08 Dec-10 Jun-13
Y/Y
UK NI RoI
Source: CSO, DFP & Nomis
Slide 32
NI Recovery Checklist
• New Car Sales Up
• Unemploymentfalling
• Business activity up
• Mortgage activity up
• Employment up
Recovery Checklist
• Insolvencies rising
• Retail vacancies
• Disposable income
• Construction jobs
• Housing starts
• Inward migration
Slide 34
The economy may have stopped falling but it still remains pretty frazzled
Slide 35
Northern Ireland Employment (Employee Jobs)
-40%
-30%
-20%
-10%
0%
10%
All Sectors Services Manufacturing Construction
Peak to Trough Recovery from Trough Q2 2013 Relative to Peak
Source: DFP, QES
NI’s employment recovery has been limited so far
Slide 36Slide 36
Consumers are experiencing ‘spreadsheet recovery’
Source: The Economist
Computer says Yes. But consumer says No!
Slide 37
No sign of a meaningful recovery with household incomes
UK Average Weekly Earnings & CPI Inflation
1.0%
2.7%
0
1
2
3
4
5
6
Aug-01 Aug-03 Aug-05 Aug-07 Aug-09 Aug-11 Aug-13
%
Ave Weekly Earnings 3m Y/Y % (Excl. Bonuses) CPI Y/Y
Source: ONS
Income squeeze
Does not include taxes or changes to benefits
NICE Decade
Slide 38
Headline inflation understates the true picture
Cumulative % Change in UK Consumer Prices since 'Credit Crunch' began (Aug 07 to Aug 13)
10.8%
20.7%
0%
10%
20%
30%
40%
50%
60%
70%
Food &Non-
AlcoholicBeverages
Food ElectricityGas &OtherFuels
TransportFuels &
Lubricants
TransportServices
Total CPI AverageEarnings*
Source: ONS, *Average Earnings as of July 2013
+68% +84%
+23%
+33% +42%
+41%
Slide 40
Don’t expect a recovery in the High Street
Slide 41Slide 41
And don’t forget about the totaliser…
Slide 42Slide 42
UK Public Sector Net Debt
0
250
500
750
1000
1250
1500
1750
2000
2001-02 2003-04 2005-06 2007-08 2009-10 2011-12 2013-14 2015-16 2017-18
£Bn
Source: ONS, OBR March 2013
One Trillion Pounds of Debt
1.5 Trillion Pounds of Debt
…the National Debt totaliser is still rising!
Slide 43Slide 43
Economic Growth will be an uphill challenge…
Source: The Economist
?
Slide 44
The Coyote always returns, never gives up, becomes more innovative with whatever resources & the race never stops!
Slide 45
Slide 46Slide 46
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The information including any opinions expressed and the pricing given, is indicative, and constitute our judgement at time of publication and are subject to change without notice. The information contained herein should not be construed as advice, and is not intended to be construed as such. This publication provides only a brief review of the complex issues discussed and readers should not rely on information contained here without seeking specific advice on matters that concern them. Ulster Bank make no representations or warranties with respect to the information and disclaim all liability for use the recipient or their advisors make of the information. Over-the-counter (OTC) derivates can involve a number of significant and complex risks which are dependent on the terms of the particular transaction and your circumstances. In the event the market has moved against the transaction you have undertaken, you may incur substantial costs if you wish to close out your position.
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Calls may be recorded.
Q&A
Please join us for lunch and we have three fringe events for you to choose
from and an opportunity to view the exhibition area
Thank you all for attending.