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Trust Budget 2015/16

Colchester Hospital University NHS Foundation Trust

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Contents

1 Financial Strategy

2 Budgeting Setting Principles 3 Budgeting Setting Process 4 Budget Rules and Standards 5 Capital Plan 6 Cash Plan

Appendices

A Summary Trust Revenue Plan B Schedule of Revenue Reserves C Capital Plan D Cash Plan

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1 Financial Strategy The financial strategy of the Trust must be to create a long term financially sustainable and viable organisation with the:

1. Ability to invest in safe patient care and facilities

2. Ability to survive structural changes in the financial flows in the health economy

3. Strength to be able to deliver efficiency savings on a medium to long term basis

4. Capacity to cope with short term financial shocks

However, following 3 years of investment in staff and services, the Trust faces a significant financial deficit. The financial position has deteriorated since 2013/14, with a deficit each year; most recently in 14/15 the forecast deficit is £21.1m. Based on the current estimates of income and expenditure, and before any cost improvement opportunities are applied, the Trust has a deficit of £45m for 2015/16. The impact of this is that the Trust will be recovering financially for a number of years as the cumulative deficit is building. If we do not take a proactive stance in managing our financial position we will be considered unsustainable. We must use this position as a lever to take seriously the opportunities of transformation. The Trust needs to take a very structured view regarding the totality of spend, rather than focusing individually on cost pressures. In circumstances of a deficit, the Trust must be focused on the actual spending and income into the trust as a test of the reality. However it is a requirement for Monitor that we submit a plan against which the Trust will be performance managed. It is therefore necessary for the Trust to set a budget, which communicates to budget holders the maximum resource that is available to deliver the agreed position with Monitor. The priority for budget holders must be to spend less than the budget, where possible and to drive forward cost reductions as a way of reducing the Trust expenditure run rate. This year the Trust has budgeted for a planned deficit of £30m. To achieve this target, as a minimum, the delivery of a cost improvement programme of £13m will be required and a further refinement of anticipated cost pressures of £2m. This will be stretching. A DRAFT Summary Trust Budget is provided at Appendix A. Further refinements will be made to this in discussion and agreement with budget holders before final submission to Monitor.

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2 Budgeting Setting Principles The Trust sets its budgets to support Service Line Management (SLM). SLM requires underpinning by challenging performance management from senior managers, who in turn will require timely and relevant performance information supported by effective processes to distinguish between those areas that are performing and those that are not. Budget Statements must provide a clear indication of how well any given service is performing within the funding envelope provided for it by the contracted tariff rates. It is also necessary to ensure that financial empowerment exists at divisional and business unit level. All income received for patient services and the vast majority of other Trust income, e.g. RTA income, is reported against the services according to where it has been generated. The principle be to match income with the cost of achieving the income. Recharges are made for the use of support services and overheads are apportioned based on the most appropriate cost drivers where robust data is available.

Profit Centres and Cost Centres Each division has [agreed] a draft budget for 2015/16 and these plans have been approved by the Trust Executive Team. Work continues with the Divisions to reduce the current deficit position. The draft budgets provide for the income and expenditure budgets which are inclusive of any CIP requirements at a local level. The services within each Division will contribute to divisional financial performance either as profit centres or cost centres. Those service areas that are income generating are profit centres and will generate a gross contribution. Support services and corporate services will remain as cost centres and their costs will be covered by the gross contribution generated by the profit centres. Theatres and Ambulatory Care, Radiology and Pathology will have their budgets set based on demand from profit centres. They will recover their costs through in year recharging and will therefore have their budget set based on the value of recharges paid to them by profit centres. Pharmacy, Therapies and Corporate services will have their budgets set and recovered through a Trust overhead. Stretching budgets have been set for corporate services in recognition that costs require significant recalibration in line with the income reductions facing the trust and the increased requirement for investment in front line investment. Capital charges will also be recovered through an overhead charge.

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Reserves As much funding as possible has been devolved to the Services. This enhances planning and forecasting of expenditure and also allows for accurate reporting of service contribution. Trust revenue reserves will be kept to a minimum. The following central trust revenue reserves will still be held for 2015/16. Inflation This will hold pay and non-pay inflation costs which cannot be easily

or readily be set in start year budgets, e.g. contract inflation. As far as possible, pay inflation will be profiled and delegated into service pay budgets in month 1.

Incremental Drift This will hold funds to support the establishment control process by providing a contingency for all staff starters and leavers in year. As far as possible, incremental points will be profiled and delegated into service pay budgets in month 1.

Committed This will hold general trust provisions for known/anticipated costs, e.g. forecast depreciation increases. A schedule of the Committed Reserve is provided at Appendix B

Divisional Cost Pressures

This is a new reserve for 15/16 and will hold cost pressures and developments flagged by divisions during budget setting. Budget will only be distributed to divisions on the approval of a business case and from the point at which costs are being incurred. These budgets will be aligned to divisions and any savings made will be attributed to the division.

Contingency This reserve has been set up as a contingency against unexpected costs that arise during the year. There also a number of potential risks which are known but as yet un-quantified for which this contingency may be used. These include:

Delivery of RTT and related penalties

Winter pressure costs

Further impact of Pathology Partnership

Finalisation of tariff and activity plans

Recovery actions for Portal of insufficient pace Applications to the Contingency reserve can be made for material and unexpected costs that arise in year. Applications should be made to the Director of Finance who will approve delegation from this reserve on a case by case basis.

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Budget Principles for 2015/16 In reviewing budgets with services a series of budget principles have been agreed for 2015/16. These are: 1. All pay costs should be budgeted at NHS rates for pay. A central contingency was

considered, however it was felt that divisions should be encouraged to look innovatively at alternative options to minimise the cost of agency. The Trust is in deficit, therefore all divisions should be working to minimise this overspend. It is proposed there is no budget for a central reserve.

2. All service developments included within the plan are subject to business cases

being approved. It is proposed that services developments are held in a reserve aligned to the division which is only released when the business case has been signed off.

3. Posts vacant for 3 months will be considered for release to CIP. It is proposed the

release of budgets from long term vacant posts will be reviewed on a post by post basis. It is acknowledged that where the vacancy is as a result of staff turnover, i.e. is not the same vacant position, this would not be subject to this review as the driver is staff turnover.

4. All approved revenue business cases and costs are to be revisited to ensure in the

current financial constraints the business case is financially appropriate, even if approved by Board

5. The excess use of temp pay costs incurred over a specified period will trigger the

need for a service/staff structure review. 6. Cost Improvements – the Current Year Reporting will be the Part Year Effect or

schemes. The Next Year Base Budget will include the Full Year Effect of CIP in the base budget. The “Flow Through” is the additional amount expected to save in the next year (difference between full year and part year).

7. As a principle central budgets will NOT be held for business operations. However, for

maternity leave a small central budget will be retained to cover the actual costs of staff that are one maternity leave. The actual cost covered will be the lower of the actual costs of the individual’s pay on maternity leave or the actual cost of the replacement arrangements put in place.

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3 Budgeting Setting Process

Income NHS clinical income is calculated and budgeted based on activity plans worked up with the Trust’s services. Underlying casemix has been based on that reported between September 2013 and August 2014 (adjusted for part year impacts), then grouped and priced using guidance released as part of the national December 2014 Consultation documents. The Trust awaits final agreement from its main commissioner (North East Essex CCG) on activity plans which is a new national requirement for this year. There is therefore risk that income will change upon agreement of these plans. Additionally, recent delays to the final national publication of tariff arrangements for 15/16 mean that plans will change when the confirmed tariff is released. There is a risk that income may therefore reduce against current plans but best estimates are that this is a low risk. Income is delegated to services at specialty level and analysed by type.

Direct Expenditure Established direct costs (pay and non-pay) are rolled forward and inflated, following a review with budget managers. These reviews are being re-visited at this time given the financial deficit, with a view to reducing the budgeted deficit. Variable non pay costs are calculated based on updated unit costs and activity plans.

Indirect Costs and Recharges Indirect costs are allocated to services by an internal recharge mechanism. The value of recharges are calculated based on planned activity and the budgeted cost of providing sessions/tests. Where activity increases an additional cost is generated. Where possible these charges have been costed ‘bottom up’, i.e. based on staffing establishment, skill mix and actual consumables used. Recharges will be subject to quarterly review by Finance and Divisions to ensure the quantum and quality of related activity had been received The main recharges are described below. Outpatient Sessions Overbooking Clearly it is not best practice for outpatients to be overbooked and the Trust should plan so that overbooking is not necessary. It would therefore be counter to this philosophy to fund overbooking. It is anticipated that where additional capacity is required rather than overbooking additional sessions would be provided and recharged for.

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Theatre Sessions Theatre recharges are grouped by type according to resource consumption, with specific allocation of on-call costs and staffing rotas being applied to emergency theatre charges. Additional sessions will recharged at an increased rate. Theatre recharges will be subject to the following rules:

If a theatre session is cancelled by theatres, then there will be no recharge

If a theatre session is cancelled by the service/consultant, then a recharge will still be made unless 6 weeks notice is given to enable Theatres to change their rostering.

Theatre Overruns It is not best practice for theatre sessions to overrun and the Trust should plan so that overrunning is not necessary. It would therefore be counter to this philosophy to fund theatre overruns. It is anticipated that where additional capacity is required then additional sessions would be provided and recharged for. Rationale: Surgery and Anaesthetics should agree a suitable case mix to be operated in a session. Ward Bed Days Plans have been agreed which assume current level of outliers. There will be a charge for these bed days and other unplanned outliers. Ward recharges will not be differential based on specialties. They are ward based recharge prices. The charges have been split in this way to reflect the different costs arising in wards. PAS Data will be used as the basis for these ward bed day monthly recharges. Radiology National Tariff will be used as the basis for Radiology recharges. All Radiology scans are currently assumed to be reported for planning purposes. For non-plain film x-rays there are specific un-reported tariffs available to be used for recharged scans not reported. High cost Outpatient Radiology scans will be charged in addition to the Outpatient Tariff. Thus, other service areas will not be recharged for these costs. Where a Commissioning threshold is in place for the number of scans carried out for outpatient services, this will be a reduction in Radiology income and not recharged to the referring location. In addition, MDT, which falls outside of the tariff, will be charged at cost to a maximum of one PA per MDT.

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Pathology Pathology charges are based on historic cost and charged for tests used at discipline level. Blood products are charged on usage. Other Recharges

Other smaller recharges include:

Endoscopy

MDT

Medical PAs

Clinics outside of outpatients

Contact centre

Overheads Overhead costs are apportioned based on the best information available. Overheads include:

Certain cost centres/services for which there is currently insufficient information to allow recharge of costs or where the costs/time associated with applying recharges of services outweighs the potential benefits of recharging these services on an actual basis, e.g. SSU

Pharmacy

Therapies

All Corporate Departments

CNST

Depreciation

Public Dividend Capital (PDC) Overheads are calculated annually and fixed for the year.

A&E Following recent investments, the cost of A&E is now significantly in excess of the income provided by the A&E tariff. On the basis that services generate income from admissions from A&E, these excess costs will now be charged to services as an overhead. This charge is based on historic levels of admission from A&E.

CIP Targets Each service has been given a 4% CIP target. For those services in deficit, this 4% target is based on direct costs. For those services in surplus, a target based on 4% NHS clinical income has been set. Corporate services have a 4% target based on direct costs. An additional £3.1m ‘stretch target’ has also been applied to corporate services based on recent benchmarking data. An additional CIP target is of £0.8m is held centrally (reserves). It is anticipated that this will be met through management of Trust revenue reserves.

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4 Budget Rules and Standards

Quarterly Review Recharges will be monitored on a monthly basis and Finance shall provide a report outlining usage and charges made. Recharges will also be reviewed quarterly at the Trust Budgets Group. If it is found that the services recharged have not been provided to acceptable standards, a refund of recharges paid will be applied. Refunds will be applied at marginal rate if the provider is underperforming against recharge plan, but at full cost if the provider is over delivering against plan.

Cost Improvement Programme Cost improvements can be recognised as follows: Planned Reduction: planned and budgeted costs are reduced. The Trust’s plan before CIP is £45m. The Trust needs to identify £15m of budget reductions to reduce the planned budget, this will include the CIP programme for 2015/16. On the basis that budget holders are not authorised to exceed budgets, the constrained budget plan is expected to reduce the Trust’s cost base.

Cost avoidance: where there is a cost that has not been budgeted for. It is important to note here that even though the actual run rate has formed the basis of the budget plan, the budgets have not been recast based on the actual out-turn, therefore there may still be costs that need avoiding if there is inadequate budget. During the 15/16 year there may also be costs that start to be incurred that have to be avoided to live within plan. Going forward, this action should be recognised by the PMO as a cost avoidance scheme. Equally this could be described as an action budget holders would be expected to take to live within their budgets. Only evidenced expenditure savings against budget can be attributed to CIP. CIP savings will be assumed to be recurrent unless clearly identified as non-recurrent. Unless part of a planned CIP scheme, non-recurrent pay savings can only be taken to CIP if the division in question is within budget for pay as a whole. For saving schemes that span more than one division, agreement as to shares of income and costs shall be reached in advance of the scheme being started, although this must not hold up the implementation of the scheme. If necessary the Director of Finance will arbitrate and agree the basis for sharing the savings from Trust wide schemes. CIP progress will be reviewed monthly with each Division.

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In year budget variations As per Trust SFIs all variations between pay and non-pay budgets requires the agreement of the Director of Finance. Changes in establishment will be agreed through the Establishment control process. Recurrent increases in income or recharge budgets designed to fund an increase in establishment will only be agreed upon demonstrating that the flow of activity and income is a permanent one. This will include a detailed income/recharge plan at HRG level or equivalent, with Commissioning sign-off where applicable.

Arbitration Process It may be necessary to arbitrate budgeting issues or disputes that arise during the year e.g. allocation of CIP savings, budget variations, re-allocations of budget. Any such dispute will be resolved by referring the matter to the Director of Finance for resolution and/or decision. Reference will only be made to the Director of Finance once all reasonable attempts to reach agreement between the Divisions have failed to resolve the issue. It is expected that the vast majority of issues should be resolved by the Divisions by reference to the following arbitration principles: Arbitration Principles

1. The organisation must continue to work as one Trust and for the benefit of the patient.

2. While services must work to develop their business this must not be to the detriment of another service – a corporate view must be maintained.

3. Unintended detrimental consequences and behaviours must be avoided, even if it conflicts with the letter of any guidance issued.

4. Although some services may have planned profit or loss, the Trust must deliver the approved plan set out to Monitor. Ideally this would be within financial balance, however where a deficit is planned, the deficit should not be exceeded.

To seek resolution from the Director of Finance a joint written submission will be made to a maximum of one side of A4. The Director of Finance may require the parties involved to meet with him as part of his decision making. The Director of Finance will report quarterly on the outcome of arbitrations.

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Access to Trust Reserves To access Trust Budget Reserves authorisation must be obtained from the Director of Finance. It is expected that any requests will be limited to maternity and extremely exceptional requests. Due to the Trust being in deficit, limited reserves are available. It is expected that efforts will have been made to cover the related expenditure within divisional budgets before seeking the facility of Trust reserves.

Investments It is the responsibility of the Divisions to ensure that they meet their budgeted plans. Any cases made to develop the business of the Trust require a full business case. Such cases must take into account all incremental income and costs, a full profit and loss, EBITDA margins and NPV/IRR where applicable. Cases will be submitted to the Investment Group for agreement.

Vacancy Control Process

The Trust’s Vacancy Control Panel Process has been re-centralised for 2015/16. The control of pay expenditure and the effective management of contractual pay commitments and liabilities are central to maintaining service integrity and financial stability. All managers must now seek approval from the Trust Vacancy Panel before incurring pay expenditure and/or making commitments in relation to staff and pay. This approval must be obtained through the Establishment Control Process. This does NOT include requests to increase establishment. Such proposals must be made through a business case initially. After a business case has been approved, an ECF should be submitted.

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5 Capital Plan The capital plan is derived from known strategic developments, requirements identified in divisional plans along with agreed slippage from the prior year. Slippage will include those schemes approved late in the financial year where there is a three month window for the scheme to be commenced following approval at Investment Group. Funding for the capital programme is made available from carry-forward cash associated with slippage, operating cash released from the non-cash impact of depreciation on the income and expenditure account, potential borrowing requirements and any cash released from the operating surplus or sales of assets. Capital developments are considered at the Investment Group, which is an Executive led group where business cases for capital and revenue are considered and includes a rigorous scrutiny process including the use of investment appraisal measures such as NPV, IRR, ROI and payback. The annual plan for capital still requires a fully approved business case for each individual scheme, where schemes within the plan have not completed a formal evaluation. A schedule of the capital plan for 2015/16 is provided at Appendix C.

6 Cash Plan The Trust’s cash plan is developed in conjunction with the operational income and expenditure plan along with capital investment and anticipated movements in working capital. Based on the revenue and capital budgets proposed a borrowing requirement of £26m is forecast. The Trust is planning for this requirement of cash support to be provided from Monitor via the Department of Health and is assuming a quarterly drawdown profile. As yet it is not known whether this will be provided as Public Dividend Capital (PDC) or a loan where the principle will need to be re-paid. The plan currently assumes PDC. A schedule of the cash plan for 2015/16 is provided at Appendix D.

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Trust Budget 2015/16 Appendix A

SURGERY DIVISION

Anaesthetics & Technical Services 8,386 (20,170) (4,990) - 14,367 1,006 (1,401)

Specialist Surgery 7,889 (5,955) (1,262) - (2,132) 289 (1,172)

Surgery 36,847 (15,019) (6,644) - (21,612) 867 (5,562)

Trauma & Orthopaedic 23,829 (8,015) (4,226) - (14,001) 490 (1,924)

Vascular Surgery 3,400 (1,910) (338) - (3,427) 90 (2,185)

TOTAL 80,351 (51,069) (17,461) - (26,805) 2,741 (12,243)

MEDICINE DIVISION

Care of the Elderly & Stroke 7,612 (11,240) (1,620) - (7,966) 514 (12,700)

General & Specialist Medicine 57,672 (18,263) (10,518) - (25,059) 2,241 6,073

TOTAL 65,284 (29,503) (12,138) - (33,025) 2,756 (6,627)

URGENT CARE DIVISION

Emergency Medicine 9,123 (16,969) (1,974) - 9,058 758 (4)

Site Operations - (973) (52) - 1,029 - 4

TOTAL 9,123 (17,942) (2,026) - 10,087 758 (0)

WOMEN'S & CHILDREN'S DIVISION

Paediatrics 14,033 (10,470) (1,160) - (3,588) 465 (721)

Women's Services 23,706 (13,266) (2,777) - (15,417) 642 (7,112)

TOTAL 37,739 (23,736) (3,937) - (19,005) 1,107 (7,833)

CANCER & SUPPORT SERVICES DIVISION

Breast Services 4,726 (2,108) (630) - (2,321) 110 (224)

Cancer Services 28,852 (11,600) (12,961) - (7,817) 982 (2,544)

Pathology 2,021 (2,002) (4,924) - 6,861 13 1,968

Pharmacy 2,765 (4,158) (1,439) 0 2,799 224 192

Radiology 7,484 (6,502) (3,998) (72) 3,231 282 425

Therapies 6,329 (6,019) (2,541) - 2,011 342 122

TOTAL 52,176 (32,389) (26,493) (71) 4,764 1,954 (60)

CORPORATE SERVICES

CNST and Insurance - - (11,512) - 11,512 - -

Estates & Facil ities 2,437 (13,613) (14,218) (26) 21,646 3,613 (161)

Finance 161 (3,602) (684) - 3,976 171 22

Human Resources 803 (2,549) (1,330) (0) 2,331 755 9

Iceni Centre 195 (67) (134) (26) (57) 8 (81)

Medical Director 302 (783) (201) - 651 39 8

Nursing & Patient Experience 814 (3,320) (608) (0) 3,007 150 42

Director of Operations 73 (3,325) (127) - 3,254 138 14

Trust Board 2 (1,485) (243) - 1,672 69 15

TOTAL 4,788 (28,745) (29,058) (53) 47,991 4,944 (132)

RESERVES

CIP - - - - - 863 863

Committed (148) (1,765) (2,431) - - - (4,345)

Contingency - - (2,500) - - - (2,500)

Incremental Drift - - - - - - -

Inflation - (1,994) (104) - - - (2,099)

RESERVES (148) (3,760) (5,036) - - 863 (8,080)

UNALLOCATED INCOME (INCL CQUINS) 4,974 - - - - - 4,974

NON OPERATING ITEMS - - - (15,993) 15,993 - -

GRAND TOTAL 254,287 (187,145) (96,149) (16,117) (0) 15,123 (30,000)

All £000 Income Pay Non Pay Non OperatingRecharges &

Overheads

CIP &

Rev GenGrand Total

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Committed Reserve Appendix B

ECH Project Team - - - 227,375 - 227,375

Carill ion Staff Contracts to AfC 55,000 - 55,000 55,000 - 110,000

Ex Director of Nursing - - - 34,580 - 34,580

Deputy Director of Nursing Secondment - - - 52,120 - 52,120

RTT Validation - - - 268,580 - 268,580

Best Practice Compliance (Portal) - - - 97,740 - 97,740

Transformation Team - - - 141,930 - 141,930

Maternity Leave - - - 250,000 - 250,000

Care Closer to Home - - - 200,000 - 200,000

Twilight Team - - - 89,676 - 89,676

Community Paeds Admin Staff TUPE - - - 72,463 - 72,463

Reduction in JD Training Income (Infrastructure) - - - 85,815 - 85,815

Stanway Ward - 7 Day Working - - - - - -

Complaints Restructure 88,560 - 88,560 - - 88,560

Medical Director PA 46,630 - 46,630 - - 46,630

ECH Project Team - - - - 62,000 62,000

Pathology Development - 238,000 238,000 - - 238,000

At our Best : Falls Prevention Equipment - 11,750 11,750 - - 11,750

Overseas Recruitment - - - - 1,589,000 1,589,000

Pathology New Build Business Cases - - - - 139,000 139,000

EPS Project - - - - 72,500 72,500

Clinical Audit Support (3 months only) - - - - 17,270 17,270

Concordia (Dermatology) - - - - 290,000 290,000

SIFT Reduction (Training Numbers Reduction) - - - - 148,000 148,000

Organ Donor - - - - 11,903 11,903

Total 190,190 249,750 439,940 1,575,279 2,329,673 4,344,892

Carry Forward

Total

New

Pay

New

Non Pay

Total

2015/16All £

Carry Forward

Pay

Carry Forward

Non Pay

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Capital Plan 2015/16 Appendix C

ALL £000

SCHEMES 2015/16

Committed Schemes

Pathology (Combined Blood Sciences Lab) 1,705

Car Park Expansion 624

CT Scanner Replacement 1,650

Outpatients Redesign 600

Waste Facil ity 220

Children Ward Drug Prep Room -new 25

Oncology separate waiting area (COPD) - new 15

Replacement of Main CGH Block Roof 450

General X-Ray Room Replacement (C/f) 140

Surgery Office Relocation 20

Endoscopy & Decon Cabinets (C/f) 180

Relocation of Essex County Hospital

Nuclear Medicine to CGH 400

Medical Photography to CGH 50

Admin space PCC based services 500

Breast at CGH 150

Not yet started

E-prescribing 650

Wivenhoe Ward (Vascular) - new 1,200

Hydrotherapy 103

PSU Automation 180

Main Block Front Entrance Improvements 200

Copford Ward pre-assessment reception 80

Lexden and Stanway Ward Improvements 250

Careview Critical Care System 350

For Special Projects Review

MRI Unit 200

Radiology Modernisation 500

Contingency 500

TOTAL 10,942

OTHER CAPITAL BUDGETS 2015/16

Medical Equipment 1,800

Estates & Facil ities 1,650

ICT 540

TOTAL 3,990

TOTAL CAPITAL PROGRAMME 14,932

FUNDING 2015/16

Depreciation 9,911

C/Forward 2,137

TOTAL FUNDING 12,048

CASH SHORTFALL 2,884

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Cash Plan 2015/16 Appendix D

All £000 TOTAL

SURPLUS / (DEFICIT) (30,000)

Non-cash flows in operating surplus/(deficit)

Finance income/charges 617

Depreciation and amortisation, total 9,911

PDC dividend expense 5,608

Other increases/(decreases) to reconcile to profit/(loss) from operations (33)

NON-CASH FLOWS IN OPERATING SURPLUS / (DEFICIT) 16,103

OPERATING CASH FLOWS BEFORE MOVEMENTS IN WORKING CAPITAL (13,897)

Increase/(Decrease) in working capital

(Increase)/decrease in inventories 500

(Increase)/decrease in NHS Trade Receivables 2,072

(Increase)/decrease in Non NHS Trade Receivables (579)

(Increase)/decrease in accrued income 1,487

(Increase)/decrease in prepayments 92

Increase/(decrease) in Deferred Income (excl. Donated Assets) (325)

Increase/(decrease) in provisions (213)

Increase/(decrease) in Trade Creditors 191

Increase/(decrease) in accruals (1,491)

INCREASE / (DECREASE) IN WORKING CAPITAL 1,733

NET CASH INFLOW / (OUTFLOW) FROM OPERATING ACTIVITIES (12,163)

Net cash inflow/(outflow) from investing activities

Property, plant and equipment - maintenance expenditure (7,544)

Property, plant and equipment - non-maintenance expenditure (7,388)

Increase/(decrease) in Capital Creditors 398

NET CASH INFLOW / (OUTFLOW) FROM INVESTING ACTIVITIES (14,534)

NET CASH INFLOW / (OUTFLOW) BEFORE FINANCING (26,697)

Net cash inflow/(outflow) from financing activities

Public Dividend Capital received 26,000

PDC Dividends paid (5,666)

Interest (paid) on non-commercial loans (1,014)

Interest element of finance lease rental payments - other (104)

Capital element of finance lease rental payments - other (333)

Repayment of non-commercial loans (1,188)

NET CASH INFLOW / (OUTFLOW) FROM FINANCING ACTIVITIES 17,695

NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (9,002)

OPENING CASH AND CASH EQUIVALENTS 9,904

CLOSING CASH AND CASH EQUIVALENTS 902