Ipswich Unemployed Action.

Campaigning for Unemployed Rights.

a4e 2012-2013 accounts reveal worrying times for a4e

with 29 comments

Is a4e continuing to do well with Welfare to Work contracts or is their time up? Their latest published accounts (snippets and downloads included) seem to suggest they had a really bad time, further allegations of their credit rating being cut since then doesn’t paint a rosy picture for Emma Harrison and A4e.

A4E Limited
Directors and advisers for the year ended 31 March 2013

Directors

S A Boyfield
A M Dutton
M Lovell
M Stevens
Sir H R Sykes
Sir R U Young

Company Secretary

S Sullivan

Registered Office

Queens House
Queen Street
Sheffield
South Yorkshire
S1 1GN

Independent Auditor

Pricewaterhousecoopers LLP

Chartered Accountants and Statutory Auditor

1 East Parade
Sheffield
South Yorkshire
S1 2ET

Bankers

National Westminster Bank Plc
244 Fulwood Road
Broomhili
Sheffield
South Yorkshire
S10 3AA

Registered Number

02631340

A4E Limited

Chairman’s statement for the year ended 31 March 2013

2012/13 has been a year of considerable progress for A4e

Following the challenges of last year, when we began work under our Work Programme and OLASS 4 contracts, during a period of intense public scrutiny, this report shows that our substantial investment into the business enabled us to improve the delivery of services for the benefit of ever-increasing numbers of customers and, as a result, although our full year results show a loss, we moved into profitability in the final quarter of the year. As we continue to improve performance on all our contracts, we expect to sustain this success throughout 2013/14 and beyond.

Achieving this position has required intense focus and dedication from our 3,500 employees and I
would like to thank them for their exceptional efforts. In my first year as Chairman I set out three
priorities and I can report good progress under each.

First was assuring the financial strength of the business. The significant working capital requirements needed to deliver the Government’s flagship payment by results Work Programme had a direct impact on our ability to generate profit in the first part of the year, and this is something we
anticipated. We invested prudently a significant proportion of the £27 5m credit facility we had with our banks and our shareholders and we retain a strong relationship with both Our current credit facility has been revised and extended and is sufficient for our needs

The closure of our businesses in France and Germany opened new opportunities to consolidate investment in our operations in Australia. Additionally this allowed us to make a strategic investment into the potential opening of the Spanish Welfare to Work market, and in India on delivering a ‘not for profit’ programme to assist people into work, enabling us to learn about this fast growing country and its work training requirements.

In last year’s Annual Report and Consolidated Financial Statements I said that no dividend would be
paid in the financial year to March 2013, and this has been the case.

My second priority was re-establishing A4e as a strong partner to Government and one the
public and funders can trust A4e is acutely aware that organisations delivering public services
must meet the highest standards. In response to serious allegations in February 2012, we appointed
the international law firm White & Case, to review our control system. At the same time, audits by the Department for Work and Pensions (DWP) and the Skills Funding Agency (SFA) confirmed they had identified no evidence of fraud in relation to any audit completed on the contracts they hold with us.
These audits laid the groundwork for our rigorous approach to compliance and I can confirm that all of the White & Case recommendations have now been fully implemented.

The work we have done to drive improvements has culminated in a number of very positive
endorsements from our funders These include:-

– The expansion of our contracts to deliver OLASS 4 in 25 prisons across London and the East
of England We were the only private company to secure OLASS 4.
– Recognition of the improved delivery of our welfare contracts by the DWP’s Provider Assurance Team
– Recognition by the Skills Funding Agency of the improved delivery of our skills contracts
– The award of a ‘very good’ rating by the Education and Training Inspectorate in Northern
Ireland

A4e has also responded to the demand for greater transparency in how we deliver our services. Our
open-door policy has already seen more than 100 MPs, Assembly Members and MSPs from all
political parties visit our offices in their constituencies over the past year, and we have been
encouraged by their positive support.

A4E Limited

Chairman’s statement for the year ended 31 March 2013
(confinued)

Our customers, as well as our staff, are at the forefront of these visits, in line with our continued
commitment to give our customers a voice in the delivery of our services.

This policy has also inspired a regional newspaper campaign called ‘We Want to Work’ and, thanks to the valuable support of a number of regional titles, dozens of our customers have found a platform to appeal directly to employers in their community through the front pages of their local paper – and many have been offered jobs as a result.

Finally, I was determined to set the business up for strong future growth and performance.
There has never been greater focus on government outsourcing and on the performance of private
companies delivering public services We are now looking forward to a year of continuous
improvement in the delivery of services to our customers and, thus. to sustained profitability in 2013/14 as we move into the third year of operation of the Work Programme, as our OLASS 4 delivery becomes established and as our Australian business continues to win new contracts.

We have also started to plan for the next phase of the Work Programme and for significant opportunities in the provision of probation services.

A great deal of work lies ahead. but we have established strong foundations for growth.

I would again like to thank A4e’s staff for their dedication and hard work over the past year and am
confident that under the leadership of Andrew Dutton, CEO. and his team, the business can look
forward to a successful future.

Sir Robin Young
Chairman

A4E Limited

Directors‘ report for the year ended 31 March 2013

The Directors present their annual report and the audited consolidated financial statements of the Company and the Group for the year ended 31 March 2013

Overview

Tackling high levels of unemployment remains a top priority for the Government In the financial year to 31 March 2013, more than 86,600 iobseekers were assigned to A4e’s Work Programme

For A4e, the ongoing welfare and probation service reforms have meant a year of investment, primarily to meet the contract start-up of the Government’s Work Programme and to respond to the change to outcome-based payment mechanisms.

During the year, our focus on transforming our skills delivery in the UK has strengthened our position to tackle youth unemployment through the delivery of apprenticeships and vocational training This includes the introduction of a team to provide central monitoring and support to improve teaching, learning and share best practice across all skills areas.

Overseas, in line with our strategy to focus our efforts on markets where we can have a significant position, progress has been made to expand our operations in Australia, with the acquisition of the Tracy Group of companies in the prior year The integration of the businesses IS now largely complete and we are now achieving organic growth through the combined businesses.

A4e leadership also changed during the financial year, including the appointment of Tracy Ellison, as Executive Director – Welfare Tracy’s appointment means women now make up 50% of the Management Board.

Principal activities

A4e is a leading public service provider, serving thousands of people across three continents: Europe, Australasia and Asia We work in partnership with governments (local and central), public sector organisations, private sector companies and voluntary and community groups to deliver a range of front line public services Our key areas of business during the financial year ended 31 March 2013 remained as follows:-

Welfare – A4e is a Prime Provider of the UK Government’s Work Programme in five
geographical areas in the UK, and a subcontractor in a further five During the second year of
operation of the Work Programme, we worked with 48 major partners (both private and third
sector) and many specialist organisations to support more than 50,000 customers on the Work
Programme find a job, a figure that is steadily growing as the programme develops In Australia, we deliver the Government’s Job Services Australia programme in seven service areas across two States and in a further 11 employment service areas through the delivery of training, labour hire, justice programmes and indigenous services.
Education and Skills – A4e was the only private company to be awarded OLASS 4 contracts
with the Skills Funding Agency (SFA) in two areas – London and the East of England – and
we provide education, training and advice to offenders in 25 prisons Outside of OLASS 4, our
wide range of skills and training opportunities are available to young people, the recently
redundant, employed individuals that wish to up-skill, and those who are long-term unemployed We do this in the UK, India and Australia We also offer workplace apprenticeships across a variety of sectors in the UK As part of the transformation of the division over 2012, our success rates in our vocational training centres (Vox Centres) and classroom unemployed provision are now above national average.

Enterprise – We help people set up their own businesses, and therefore into self-employment, through a range of initiatives including the New Enterprise Allowance scheme, Adult Skills
Budget, enterpriseGY, and Starting Your Own Business under the Work Programme A4e
helped its customers set up nearly 3,530 new businesses by March 2013, 80% of which were
still running at 26 weeks

A4E Limited
Directors‘ report for the year ended 31 March 2013 (continued)
Principal activities (continued)

Advice – We have marked our second year of delivery of the face-to-face element of the
Money Advice Service in England and Northern Ireland, providing free and unbiased financial
advice to more than 80,000 people so far Over 70% of our Money Advice Service customers
are classed as vulnerable Service delivery in this area goes from strength to strength,
exceeding the contractual expectation of the Money Advice Service

Review of business

As we predicted last year, the significant investment into the Work Programme to facilitate the shift to outcome-based payment mechanisms under the Work Programme continued in 2012/13.

However, the £27 5 million credit facility we secured with our banks and shareholders enabled us to
create joined-up services and support packages for customers to help them into work without affecting the quality of our work on either the Work Programme or within other contracts Our current credit facility has been revised and extended and IS sufficient for our needs.

The payment by results model under the Work Programme is one that A4e has long championed and
evidence demonstrates that good progress is being made in terms of performance.

Overseas, the acquisition of the Tracy Group of Companies in Australia last year enabled us to enter a new state, Victoria, to provide Federal Government Employment Services through the Job Services Australia contract, in addition to our operations in New South Wales The acquisition also allowed us to deliver pre-vocational training and qualifications in the state of Victoria and provide further opportunities for the unemployed through our Labour Hire services business, with a particular emphasis on helping people secure work in the construction and food processing industries.

In India, we have become an established and valued partner to the Ministry of Rural Development to deliver its Skills for Work initiative by supporting 8.370 young people across six states in India to train and find entry-level jobs in hospitality, retail and health care To date, 62% of the individuals we have trained so far have been placed into employment.

With our decision to close our operations in France and Germany and the successful completion of our projects in Poland, we continue to monitor the European markets In particular, on-the-ground activity in Spain continues to position Me to engage in future welfare reforms.

The business will continue to balance its work across markets that operate management fees and
outcome funding in relation to the services provided.

Our continued investment into our front line customer service centre (Customer Connect) has directly benefitted our customers and staff through improved customer relationship management Further investment IS being made in delivering a new IT system, Connect4Work, which we expect to go-live in 2013/14.

A4E Limited

Directors‘ report for the year ended 31 March 2013 (continued)
Going concern

The financial statements have been prepared on a going concern basis The consolidated financial
statements show a net liability position as at 31 March 2013, due to the investment into the Work
Programme, however, as the Work Programme matures, the Group IS forecast to return to profit in
2013-14 with improved profitability also forecast in 2014-15 and 2015-16.

Subsequent to the year-end, the banking facility with RBS & Co-op Bank was revised and extended through to December 2015 with an associated facility of £17m that gives the Group sufficient headroom.

The facility with Thornbridge Ltd was also revised and extended through to January 2016, with an
associated facility of £5m.

Future developments

Despite the complex environment in which we operate. next year holds plenty of promise for A4e

In August 2013, the Department for Work and Pensions launched a consultation to inform its 2013
Commissioning Strategy. which will be the framework for the procurement of all future welfare to work services including Work Programme We expect to be in a strong position for the future evolution of WP, when the current contract ends in March 2016.

In Australia, there will hopefully be significant opportunity to grow the business through the
Employment Services Procurement Process to provide employment services under Job Services
Australia as well as expanding into the new skills market It is envisaged that the tender submissions
will be made in late 2014 and the business is confident that it is able to strengthen its geographical
coverage and service capabilities.

Next year, 2014, the Ministry of Justice’s Transforming Rehabilitation programme will see 70% of
current Probation Service activity delivered by the private and voluntary sector These Transforming
Rehabilitation contracts will see new providers become responsible for supervising low and medium risk offenders in the community, with new targets to measure reoffending rates.

Internally. A4e has devoted considerable resource to focus on performance, including the Active
Manager Programme, to further develop front line and middle managers, Information Strategy and
delivery of Connect4Work.

A4E Limited

Directors’ report for the year ended 31 March 2013 (continued)
Managing and mitigating risk

As expected, A4e continues to manage and mitigate risk at both a strategic level, which impact on our corporate and strategic objectives, and within the operational activities of the business, through
governance and controls
We have implemented all White & Case’s suggestions for improvements to our control framework and compliance systems, which means we have a robust internal control process.

Our delivery of the Work Programme has required strong controls and high quality management
information, which we have delivered in a range of ways including, as previously explained, investment into new IT systems, Connect4Work and Customer Connect

The business will continue to balance its work across markets that operate management fees and
outcome funding in relation to the services provided We are also planning to generate commercial,
alongside, public revenue streams Our focus remains, as ever, on the strength of our customer
relationships – including enhancements to the ways in which we respond to customer complaints
Results and dividends.

The Group made an operating loss of £10 3m (year ended 31 March 2012 E1 7m) and an EBITDA
loss of £5 m (year ended 31 March 2012 profit of £4m) in the year This includes £2 9m of
exceptional operating expenses (see note 19) The Group’s loss before income tax for the year is
shown on page 13 The consolidated financial statements are prepared in accordance with
International Financial Reporting Standards as adopted by the European Union (lFRSs).

Dividends paid during the prior year are set out in note 24 to the financial statements The directors
are unable to recommend payment of any dividend for the year ended 31 March 2013

Pay and remuneration

To restore parity among pay grades, A4e carried out a pay review in this financial year and awarded
increases to staff recognised to be at the lower end of the pay scale

A4e externally benchmarks Executive pay on an annual basis and this information is considered by the Remuneration Committee in determining Executive rewards As stated in the Hutton Review of Fair Pay, “public trust in public services can only be maintained if senior public servants‘ pay is fair and seen to be fair” Whilst A4e IS clearly a private sector business, we have chosen to work under the spirit of Hutton’s recommendations and therefore, in line with Hutton’s recommendations, the ratio of the A4e Chief Executive’s total remuneration to the median adult full time salary compares favourably with the maximum ration of 2ox, which Hutton set out.

Directors

The directors who held office during the year and up to the date of signing the financial statements
(unless otherwise stated) are given below

M Lovell

S A Boyfield

Sir Hugh Sykes

Sir Robin Young

J Blundell (resigned 13 September 2012)

A Dutton

M Stevens (appointed 24 July 2012)

A4E Limited

Directors‘ report for the year ended 31 March 2013 (continued)
Principal risks and uncertainties

A4e, like all businesses, faces risks and uncertainties as we conduct our operations that could affect
short and long-term performance

We place great importance on internal control and risk management, which is promoted and
encouraged throughout the Group We have a robust risk management process, which is designed to
identify, manage and mitigate risk

This section highlights the principle risks and uncertainties that affect the Group, but is not an
exhaustive list of all risks

External factors

The economic environment continues to be a cause for concern for our Welfare business, especially
with regard to the nature and availability of Job vacancies To mitigate this risk A4e continues to
develop strong and productive relationships with employers both in the UK and internationally

The increasing use of ‘Payment by results’ as a funding mechanism by UK and Australian
governments places a greater working capital requirement on the Group In response we have
developed and established ways of working that deliver sustainable outcomes for all our customers
and drive revenue for the Group Additionally we have established and developed strong working
relationships with our shareholders and banking partners

Internal factors

The delivery of good quality customer service is central our strategy The successful implementation of our new customer management and secure information management systems is pivotal to driving
market leading customer service

Our code of conduct, which applies to all our employees and partners, sets out our commitment to
trustworthiness and transparency Failure to follow these principles could harm our reputation, damage our brand and affect our operational performance and financial position A combination of awareness training and focused controls, particularly relating to fraud, is in place to ensure and check compliance with these principles

Post balance sheet events

Subsequent to the year-end, the banking facility with RBS 8. Co-op Bank was revised and extended
through to December 2015 with an associated facility of £17m

The facility with Thornbridge Ltd was also revised and extended through to January 2016, with an
associated facility of £5m

Qualifying third party indemnity provisions

A qualifying third party indemnity provision as defined in Section 232(2) of the Companies Act 2006 is in force for the benefit of each of the directors and the company secretary in respect of liabilities incurred as a result of their office, to the extent permitted bylaw In respect of those liabilities for which directors may not be indemnified, the group maintained a directors’ and officers’ liability insurance policy throughout the financial year

Branches within the EU

A4e operates from 2 branches within the EU (outside of the UK), which are Spain and Poland

A4E Limited

Directors‘ report for the year ended 31 March 2013 (continued)
Charitable donations

During the course of delivering its services A4e works with many charitable, voluntary and community sector organisations and in particular assists small charities through the Foundation For Social Improvement (FSI)

The total of formal donations for charitable purposes during the course of the year amounted to
£94,850 (2012 £131,538), which included a £93,750 donation to the FSI

Equality, diversity and engagement

At A4e we are committed to being a fair and responsible employer Putting our staff first has been one of the cornerstones of our strategy for 20 years, and as a Board we are committed to developing
policies and procedures to ensure A4e offers an excellent work environment for all its employees We are also committed to training at all levels, to ensure that staff development is maintained alongside the core requirements we have under our contracts with regards to performance, quality and compliance

Employee involvement

We are grateful for the loyalty and dedication of our staff, which saw us through a difficult period last year The launch of Employee Voice, A4e’s new employee-led forum, has given employees a key role in shaping the future of the business by sharing their ideas and best practice with the leadership team. The creation of Employee Voice ambassadors will also see staff representing their colleagues at national and local forums.

Now in its third year, the A4e Superstars scheme recognises outstanding company-wide efforts made by our staff This scheme rewards people and teams who go ‘above and beyond‘ their everyday remit and who ‘achieve extraordinary things’.

We continue to invest in a range of communications channels, which includes our staff tabloid
newspaper A4e VOICE, local media activity, video blogs and surveys

A4e continues to adhere to the UK policy for giving full and fair consideration to applications for
employment that disabled people make to the company, the policy for employment, training, career
development and promotion of disabled people and for the continuing employment and training of
employees who have become disabled while employed by the company

Financial risk management

The group’s financial risk management objectives and policies are described in note 2 to the financial statements.

A4E Limited

Directors‘ report for the year ended 31 March 2013 (continued)
Statement of directors’ responsibilities

The directors are responsible for preparing the annual report and the financial statements in
accordance with applicable law and regulations

Company law requires the directors to prepare financial statements for each financial year Under that law the directors have prepared the group and parent company financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union Under company law the directors 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 group and the company and of the profit or loss of the group for that period

In preparing these financial statements, the directors are required to select suitable accounting policies and then apply them consistently, a make judgements and accounting estimates that are reasonable and prudent, state whether applicable IFRSs as adopted by the European Union have been followed, subject to any material departures disclosed and explained in the financial statements, and o prepare the financial statements on the going concern basis unless It is inappropriate to presume that the company will continue in business.

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

Directors’ statement pursuant to the Disclosure and Transparency Rules

Each of the directors, whose names and functions are listed in the directors‘ section of the Directors’ report confirm that, to the best of each person’s knowledge and belief the financial statements, prepared in accordance with IFRSs as adopted by the EU, give a true and fair view of the assets, liabilities, financial position and loss of the group and company, and the Directors’ report contained in the annual report includes a fair review of the development and performance of the business and the position of the company and group.

Statement of disclosure of information to auditor

So far as the directors are aware, there is no relevant audit information of which the group’s auditor is unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the
group’s auditor is aware of that information.

Independent auditor

Pricewaterhousecoopers LLP will remain in office in accordance with Section 487 of the Companies Act 2006

On behalf of the Board

A Dutton

Director

9 January 2014

A4E Limited

Independent auditor’s report to the members of A4E Limited
We have audited the group and parent company financial statements (the “financial statements”) of
A4E Limited for the year ended 31 March 2013 which comprise the Consolidated income statement, the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Consolidated statement of changes in equity, the Company balance sheet, the Consolidated statement of cash flows and the related notes The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (lFRSs) as adopted by the European Union and, as regards the parent company financial statements, as applied in accordance with the provisions of the Companies Act 2006

Respective responsibilities of directors and auditors

As explained more fully in the Statement of directors’ responsibilities set out on page 10, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors This report, including the opinions, has been prepared for and only for the company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements
sufficient to give reasonable assurance that the financial statements are free from material
misstatement, whether caused by fraud or error This includes an assessment of whether the
accounting policies are appropriate to the group’s and the parent company’s circumstances and have
been consistently applied and adequately disclosed, the reasonableness of significant accounting
estimates made by the directors, and the overall presentation of the financial statements In addition,
we read all the financial and non-financial information in the annual report and consolidated financial statements to identify material inconsistencies with the audited financial statements If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report

Opinion on financial statements

In our opinion the financial statements give a true and fair view of the state of the group’s and of the parent company’s affairs as at 31 March 2013 and of the group’s loss and group’s and parent
company’s cash flows for the year then ended, the group financial statements have been properly prepared in accordance with lFRSs as adopted by the European Union, the parent company financial statements have been properly prepared in accordance with lFRSs as adopted by the European Union and as applied in accordance with the provisions of the Companies Act 2006, and the financial statements have been prepared in accordance with the requirements of the Companies Act 2006

A4E Limited
Independent auditor’s report to the members of A4E Limited
(continued)
Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us, or o the parent company financial statements are not in agreement with the accounting records and returns, or a certain disclosures of directors’ remuneration specified bylaw are not made, or we have not received all the information and explanations we require for our audit.
Arif Ahmad (Senior Statutory Auditor)

for and on behalf of Pricewaterhousecoopers LLP
chartered Accountants and Statutory Auditor
Sheffield

10 January 2014

A4E Limited
Consolidated income statement
for the year ended 31 March 2013
2013 2012

Continuing operations
Revenue 167,088,000 194,118,000
Operating expenses (174,457,000) (194,015,000)
Exceptional operating expenses (2,932,000) (1,795,000)
Total operating expenses (177,389,000) (195,810,000)
Operating loss (10,301,000) (1,692,000)
Finance income 63,000 163,000
Finance costs (1 ,288,000) (585,000)
Finance costs – net (1,225,000) (422,000)
Loss before income tax (11,526,000) (2,114,000)
Income tax credit (expense) 1,647,000 (1,383,000)
Loss for the year (9,979,000) (3,497,000)

As permitted by Section 408 of the Companies Act 2006, the income statement of the parent company is not presented as part of these financial statements The parent company’s loss, after dividends paid on redeemable shares (note 24) for the financial year was £7,385,000 (2012 £1,007,000) The notes on pages 22 to 65 are an integral part of these consolidated financial statements

1.2 Going concern

The financial statements have been prepared on a going concern basis The consolidated financial
statements show a net liability position as at 31 March 2013. due to the investment into the Work
Programme and the associated payment by results methodology, however. as the Work Programme
matures, the Group is forecast to return to profit in 2013-14 with improved profitability also forecast in 2014-15 and 2015-16

In December 2011, the group put in place new banking facilities with the Royal Bank of Scotland
Co-op Bank in the form of a £22 5m facility extending through to June 2014 This facility was fully
drawn as at March 2013 Subsequent to the year-end the facility was amended including an extension through to December 2015 with £17m being the adjusted value of the facility The financial forecasts demonstrate that the step downs proposed in the revised facility can be met with sufficient headroom

In addition to the bank facility a £5m facility was secured with Thornbridge Ltd in September 2012
E2 5m of the facility was drawn as at March 2013 with a further £0 5m drawn in October 2013
Subsequent to the year end this facility was amended including an extension of the £5m facility to
January 2016

A4E Limited
Notes to the financial statements for the year ended 31 March
2013 (continued)
3 Segmental information (continued)
2013 2012

Segmental revenue
UK 143,931,000 167,126,000
Continental Europe 674,000 3,935,000
Australia 21,849,000 22,847,000
Rest of the World 634,000 210,000
Revenue from external customers 167,088,000 194,118,000

During the year, the company authorised capital contributions to A4E India Pvt Limited amounting to £455,000 This has resulted in an increase in the cost of investments
On 24 April 2012, Medex Training Limited, a subsidiary undertaking, was struck off The carrying
value of this investment at this date was £NiI
Similarly on 29 March 2013, A4E Polska Sp z o o , a subsidiary undertaking. was struck off The
carrying value of this investment at this date was £nil
The directors believe the carrying value of the investments at the year end reflects the fair value of the investments underlying net assets, therefore an impairment charge has not been recognised this year At 31 March 2013. the company held the equity of the following principal subsidiary undertakings

A4E Austraha Outsourced supplier Ordinary shares (100% held)
A4E Deutschland GmbH Dormant Ordinary shares €1 each (100% held)
A4E Enterprise Limited Social Welfare Services Limited by guarantee
A4E Europe Limited Social Welfare Services Ordinary shares €1 each (100% held)
A4E France SAS Outsourced supplier Ordinary shares (100% held)
A4E India Pvt Limited Outsourced supplier Ordinary shares RS10 each (100% held)
A4E Insight Limited Dormant Ordinary shares £1 each (100% held)
A4E Ireland Limited Outsourced supplier Ordinary shares £1 each (100% held)

A4E Israel Dormant Ordinary shares (100% held)
A4E Management Limited Outsourced supplier Ordinary shares £1 each (100% held)
A4E Scotland Limited Outsourced supplier Ordinary shares £1 each (100% held)

A4E Wales Limited Outsourced supplier Ordinary shares £1 each (100% held)

29 Ultimate parent undertaking and controlling party

A4E Limited is the ultimate parent undertaking and is the parent undertaking of the smallest and
largest group to consolidate these financial statements The directors consider Mrs E L Harrison to be the ultimate controlling party of the A4E Limited group by virtue of her 85 51% shareholding in A4E Limited.

View the accounts here

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Written by Universal Jobmatch

January 25, 2014 at 1:13 pm

29 Responses

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  1. According to Private Eye A4E are gearing up to take advantage in a big way of Workfare.

    Andrew Coates

    January 25, 2014 at 3:55 pm

    • I thought it was about time we added an A4e post as they are far from going away.

      workfare is going to be a big problem for them – the accounts above show the political-line – they have failed in continental europe… but the ties in Australia is similar to in this home market so for the next few years its going to keep growing – despite workfare being where the money is at now for a4e, they will find it hard against the resistance that is developing

      The question is whether this resistance will wipe out much or most of their profitability.

      Universal Jobmatch

      January 25, 2014 at 5:38 pm

  2. I have not yet met a Private Provider who isn’t completely in it for making money off the backs of the unemployed and totally incompetant!

    In my time I have experienced 4 different providers since 2002 (A4E was poop down toilet) through the now adimitadly usesless ‘New Deal Programme’ and Ingeus who now states they will help you o the ‘Work Progshamme’ – Park you up more like for two years once they have secured their referral fee of £400 – £600.

    Obi Wan Kenobi

    January 25, 2014 at 5:34 pm

    • Its for providers like it is for recruitment agencies, if they solved unemployment, then they would all be out of business. That’s why every single agency is creating fake jobs so as to make themselves look busy to employers scanning the job sites along with reposting the same job more than once everyday.

      Its all just cheap parlour tricks.

      gaia

      January 27, 2014 at 3:27 pm

  3. Are the probation contracts called OLASS 4? If so, A4e already have some of them in their pocket. Ken Clarke announced last week that the privatisation of the Probation Service was to be put back a year. I can’t imagine that A4e are doing anything other than getting ready to pounce on the new WP contracts.

    A4e and any company taking money for this abuse of the poor and vulnerable are like vultures waiting for the hyenas to leave the corpse.

    Lucy

    January 26, 2014 at 10:03 am

  4. As for Workfare? I do not know how the payouts will be paid,but a friend in the local council has been working with 2 providers and they are designing a “Work Gang” plan.where the council will be a clearing house for projects,but the likes of A4E will provide the Guards,I mean staff to oversee the Inmates,sorry participants and as there will be a never ending supply the council can downsize their paid employees.

    jray

    January 26, 2014 at 12:27 pm

  5. This whole CWP six month Worfare thing sounds like a scheme my neighbour was on, here in Cambridgeshire in the early eighties. It was called the Community Programme and you were on it three days a week for one year. Although it was compulsory, you were paid the going rate for the work, which worked out being twice what you were getting on the dole. It was run in this area by the Manpower Services Commission (MSC). The work involved painting community buildings, churches, council houses (as they were known then) and gardening. The unemployed provided the labour while the building owners and council house occupants provide the paint and wallpaper. The supervisors or chargehands were drawn from the unemployed; usually mature men in their forties/fifties.

    There was also a proviso in the contracts that no council employees would be laid off, and nor would they compete with local companies for contracts either.

    Quite what this new scheme will involve remains to be seen. It will be full time for six months and we’ll be getting the basic dole and that’s it.

    jj joop

    January 26, 2014 at 5:43 pm

  6. Capita is cashing-in on Welfare-to-Work with this conference taking place TODAY:

    http://www.boycottworkfare.org/?p=3282

    Tobanem

    January 27, 2014 at 9:23 am

    • KINGS OF THE EAST

      Regarding the black hole in the coffers of the Bank of China.

      Yes, it’s serious.

      One day there is going to be a coincidence of major crises in the West – and East – then, lo and behold, you have the recipe for Armageddon.

      Have you heard of the expression “The Kings of the East”? You’ll find it in the Book of Revelation – connected with Armageddon!

      Tobanem

      January 27, 2014 at 11:27 am

      • Somebody once told me of an ancient Chinese Proverb ”When the golden towers of the east fall the sun shall rise in the west”.

        Middlesex

        March 15, 2014 at 8:22 am

  7. “It cost friends of government just £8.3 billion to get £53 billion in PFI returns”

    http://www.maxkeiser.com/2014/01/it-cost-friends-of-government-just-8-5-billion-to-get-53-billion-in-pfi-returns/

    “NHS privatisation: Compilation of financial and vested interests.”

    http://socialinvestigations.blogspot.co.uk/2012/02/nhs-privatisation-compilation-of.html

    Annos

    January 27, 2014 at 11:50 am

  8. “A sad day has arrived. There are now 1,000+ Food Banks open in Tory UK. Full list here:”

    http://www.greenbenchesuk.com/2014/01/a-sad-day-has-arrived-there-are-now.html

    Soon to be 2,000 methinks!.

    Annos

    January 27, 2014 at 12:04 pm

  9. Millionaire Tory cashes in on TV Benefits Street – renting out damp and mouldy dump for £215 a WEEK.

    The squalid rented four-bedroom home on TV’s controversial ­Benefits Street is so riddled with damp that water runs down the walls.

    There is no heating because the boiler has long been broken – and the tenant’s children are so frozen at night they sleep with their clothes on.

    But the biggest disgrace about the house in James Turner Street is the landlord who owns it – a millionaire Tory and one time friend of Margaret Thatcher who makes a fortune raking in housing benefits .

    Businessman Paul Nischal – whose property firm is called Goldfinger – owns three houses in the road made infamous by the Channel 4 reality show.

    The former Tory election candidate lives in luxury in a £750,000 gated house in a smart suburb of Birmingham.

    http://www.mirror.co.uk/news/uk-news/benefits-street-millionaire-tory-paul-3062319#.UuWfOGHeVgs.twitter

    Obi Wan Kenobi

    January 27, 2014 at 12:48 pm

    • Have you heard obi that people who own office buildings can now convert them to bedsits?

      gaia

      January 27, 2014 at 3:36 pm

  10. Labour Party announces plans to replace back to work scheme.

    MULTI-NATIONAL firms will be stripped of ‘back-to-work’ contracts and responsibility handed to local councils and businesses, under Labour plans.

    Ed Miliband’s party will – if it wins power – axe the private sector-led ‘Work Programme’, because it is failing to find jobs for the “hardest to help”.

    http://www.thenorthernecho.co.uk/news/10960154.Larbour_Party_announces_plans_to_replace_back_to_work_scheme/

    Obi Wan Kenobi

    January 27, 2014 at 2:46 pm

    • Thanks for that Obi.

      We will look into this.

      The other concern is Workfare.

      Remember: it is not long to April.

      Andrew Coates

      January 27, 2014 at 4:28 pm

    • That is obvious.

      They will create something the same (or very similar) under a new name.

      No employment programme will ever work. They can only give excuses of it being new in the first few years. The new party coming into power will always u-turn on the “flagship” unemployment programme.

      If they stay in power, the next term will consist of tweaking it slightly. never admit the old one didn’t work just use it to say how much better the new one is.

      The Work Programme delivery did use a lot of small firms (including charities if I recall correctly) just its the big firms that had the prime contracts and delegated them out.

      I am clearly not a Tory supporter, but Labour (don’t support them either) said they would scrap the Jobseekers Act when elected… did they? No, they just made it even worse for jobseekers.

      Politicians lie to get into power. I cannot see them creating loads of small contracts as it increases the administration processing (i.e. more costs) and we all know they want to reduce public sector jobs.

      The problem with this new new labour is, the idiot in charge is more clueless than Brown ever was… so he is talking about stuff he has no clue in how to implement. The bottom line for me is its Labour who built up the whole private providers thing, especially with the likes of A4e for instance, and all A4e Emma Harrison CBE had to do was jump into bed with and bribe the local MP.

      Universal Jobmatch

      January 27, 2014 at 4:48 pm

  11. Ever heard of civil service values/obligations

    http://www.civilservice.gov.uk/about/values

    Take note particularly of point 3, second bullet point down and point 6, bullet point 6.

    And lastly how many civil servants have been naughty boys

    http://bentlawyersandcops.com/unaccountable_civil_servants.htm

    gaia

    January 27, 2014 at 3:46 pm

  12. Inside Life

    January 27, 2014 at 5:05 pm

  13. More on the new Claimant Commitment specifically the ‘Work Plan booklet’.

    Jobcentre ‘My Work Plan’ is not mandatory, no sanctions for refusing.

    Posted on 27/01/2014 by http://www.refuted.org.uk

    “Completion of the My Work Plan booklet is not a condition of Jobseekers Allowance or Universal Credit. Completion can be refused without sanctions. This is confirmed in the
    attached [Jobcentre] guidance.”

    From: My Work Plan? -17 January 2013 – DWP Central FoI Team

    https://www.whatdotheyknow.com/request/187245/response/472152/attach/html/2/FoI%205619%20wdtk.pdf.html

    Obi Wan Kenobi

    January 27, 2014 at 6:39 pm

    • Claimant Commitment ‘My Work Plan’ – full overview.

      https://www.whatdotheyknow.com/request/187245/response/472152/attach/html/3/My%20Work%20Plan%20overview.pdf.html

      Best part:

      However, this booklet is not a mandatory product for demonstrating evidence of work search and claimants have the right to demonstrate what they have done to look for work through whichever means they deem suitable and most effective.

      Obi Wan Kenobi

      January 27, 2014 at 7:07 pm

      • Take in an (obsolete) floppy disc and tell them that all details are on there.

        Gissajob

        January 28, 2014 at 12:39 pm

      • “claimants have the right to demonstrate what they have done to look for work through whichever means they deem suitable and most effective.”
        Scratch your jobsearch diary into their arse.

        something survived...

        January 30, 2014 at 10:42 pm

  14. […] a4e 2012-2013 accounts reveal worrying times for a4e | Ipswich Unemployed Action.. […]

  15. […] riddled with continuous fraud allegations and just as many cover ups. A4e’s fortunes have recently taken a tumble for the worse (although they have picked up a little) although Australia looks a good market for them, their […]

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