NFA posts profits in the face of council cuts

In the financial year to 31 March 2012 when it changed hands from Sovereign to Graphite Capital (CCMn February 2012), the National Fostering Agency (NFA) achieved a turnover of £57.5m, an increase of 6.1% on the previous year’s £54.2m. Further resisting the effect of local authorities’ attempts to try to cut unit costs, the UK’s second largest fostering agency recorded an operating profit of £9.3m (2011: £7.7m) and a pre-tax profit of £5.5m (2011: £3.5m). The directors reported: Following the government’s spending review in October 2010, significant pressure continues to be placed on local authorities to reduce costs across all areas of their activity including children’s services. Despite this ongoing pressure to reduce unit costs, the group has maintained its revenue levels and improved profitability. NFA’s principal revenue sources are within the public sector, substantially reducing the risk of bad debt.’