Corporate Governance
For the year ended 31 December 2023, under The Companies (Miscellaneous Reporting) Regulations 2019, the Group has applied the Wates Corporate Governance Principles for Large Private Companies (published by the Financial Reporting Council (‘FRC’) in December 2018 and available on the FRC website). The following paragraphs summarise how the Company has applied the principles over the past year:
Principle 1 – Purpose and leadership
At Helping Hands, our aim is to improve the lives of our customers by allowing them to stay in their own homes. We also strive to be a great place to work.
Unlike many home care providers our service is fully managed by a team of resolute care managers local to the customer. A key focus for the Board in 2023 has been embedding the success of our recruitment and retention strategies for carers so we can continue to provide industry-leading care to people in their own homes. Plus, we invest in new specialist roles to support the efficient and effective front-line delivery of our service. This ensures that the Group has a reputation as one of the most trusted businesses in the sector, invests in its carers and customers, treats them fairly, manages its risks and delivers its promises, safely, on time, and at the right quality.
Principle 2 – Board composition
The Board structure comprises a separate Chair and Chief Executive to ensure that the balance of responsibilities, accountabilities and decision-making are maintained effectively. The Board also includes a Group Managing Director, Chief Financial Officer, two shareholder non-executives, one independent non-executive and two non-executive Directors from the family. This size and composition is appropriate to the Group’s large yet focused business. Independent non-executive directors bring experience in addition to perspectives and challenges from outside the sectors in which the Group operates.
Principle 3 – Director responsibilities
The Board has a programme of 12 principal meetings every year. As part of every Group Board meeting, the governance of the Group is included as a standing agenda item. The Board’s key areas of focus in 2023 are noted in the ‘Directors’ statement of compliance with duty to promote the success of the Company (s172 statement)’ as included in the 2023 Annual Report. The Board receives regular and timely information on all critical aspects of the business, including health and safety, risks and opportunities, the business's financial performance, strategy, operational matters, market conditions and sustainability, all supported by Key Performance Indicators (KPIs).
Principle 4 – Opportunity and risk
The Board seeks out opportunities whilst mitigating risk. The Group’s key operational risks and mitigations are outlined below:
Workforce recruitment and retention: Recruitment and retention of skilled workforce across all roles is of paramount importance. With well-documented extensive challenges in the social care employment market, this remains a key focus of review and activity by the Board and Executive.
National Minimum Wage: The Board remains mindful of the need for full implementation of the National Minimum Wage and the National Living Wage and also of the focus on our sector from HMRC. We continue to take all necessary steps to ensure that we are a respected employer in the industry and mitigate any non-compliance risks by paying our carers at rates above statutory minimums. During 2023, the Company also received clean results on inspections for Employer Compliance (PAYE) and Furlough, which assured the board of the continued focus on compliance with all HMRC procedures in the business.
Reputational risk: The Company’s business activities could give rise to certain reputational risks. These are managed tightly with thorough quality control measures, which are checked and validated by the company’s internal Quality Assurance function, along with regular robust mandatory training sessions. The company also regularly reviews advice from external providers to give the Board and Executive team assurance that the business continues to operate within a strong control, high-quality environment.
Risk surrounding the cost of living crisis: The Executive team and business leaders recognise the increasing financial pressure on both employees and customers during this time. Management will continue to implement a range of measures to alleviate financial pressures where necessary by reviewing remuneration packages and alternate contracts where possible and seeking external support to review the service we offer. Directors believe that any costs associated with any measures taken will not represent a material risk to the future performance of the business.
Financial risks: The key financial risks are:
We remain confident that these material risks can be mitigated to ensure the continued smooth running of our business, albeit we will continue to monitor them closely.
Workforce recruitment and retention: Recruitment and retention of skilled workforce across all roles is of paramount importance. With well-documented extensive challenges in the social care employment market, this remains a key focus of review and activity by the Board and Executive.
National Minimum Wage: The Board remains mindful of the need for full implementation of the National Minimum Wage and the National Living Wage and also of the focus on our sector from HMRC. We continue to take all necessary steps to ensure that we are a respected employer in the industry and mitigate any non-compliance risks by paying our carers at rates above statutory minimums. During 2023, the Company also received clean results on inspections for Employer Compliance (PAYE) and Furlough, which assured the board of the continued focus on compliance with all HMRC procedures in the business.
Reputational risk: The Company’s business activities could give rise to certain reputational risks. These are managed tightly with thorough quality control measures, which are checked and validated by the company’s internal Quality Assurance function, along with regular robust mandatory training sessions. The company also regularly reviews advice from external providers to give the Board and Executive team assurance that the business continues to operate within a strong control, high-quality environment.
Risk surrounding the cost of living crisis: The Executive team and business leaders recognise the increasing financial pressure on both employees and customers during this time. Management will continue to implement a range of measures to alleviate financial pressures where necessary by reviewing remuneration packages and alternate contracts where possible and seeking external support to review the service we offer. Directors believe that any costs associated with any measures taken will not represent a material risk to the future performance of the business.
Financial risks: The key financial risks are:
- Liquidity risk: The Group actively manages its liquidity using operating cash flows to ensure the Group has sufficient available funds for its operations.
- Credit risk: The Company has implemented policies that require appropriate credit checks on potential customers before sales are made. Management assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the board. The utilisation of credit limits is regularly monitored.
We remain confident that these material risks can be mitigated to ensure the continued smooth running of our business, albeit we will continue to monitor them closely.
Principle 5 – Remuneration
The Board’s primary objective is to set remuneration at a level that will enhance the Group’s resources by securing and retaining quality senior management, who can deliver the Group’s strategic ambitions consistent with its purpose and the interests of its shareholders and all stakeholders.
Principle 6 – Stakeholders
The Board is clear that good governance and effective communication are essential on a day-to-day basis. This enables the business to fulfil its purpose and protect the Group’s brand, reputation and relationships with all its stakeholders. This includes shareholders, customers, employees, suppliers, regulators, financial institutions and the communities in which it works.