FINANCIAL REVIEW

SUSTAINABLE FUNDING

Despite the severe economic challenges faced through lockdowns, we were able to sustain good revenue levels in 2020. Our funding models, asking for small donations in huge numbers, proved a lifesaver during the COVID-19 epidemic. The debit order and car competitions are what have sustained our revenues in 2020.

At the beginning of 2020, we estimated that COVID-19 would have significant impacts on funding for 2020 and the future, as bank rejections and debit order cancellations increased due to the economic downturn. The actual impact was less than expected and the cancellation rates and debit order rejection rates remained consistent.

INCOME AND EXPENSES

Revenue amounted to R151 264 047 which was 7% less than budget, but 1.7% better than 2019. The principal reason was the disruption caused by lockdowns, having to create a virtual call centre in emergency time frames and not being able to visit donors. Government donations remain contracted. We were specifically unsuccessful in unlocking COVID-19 funding from the Solidarity Fund, the Department of Health, Treasury or the Department of Transport. The lack of support, given our particular commitment during the crisis and our performance of medical evacuations from ships at sea, is a cause for concern.

Given the COVID-19 crisis, it was expected that expenditure would be less, however, we were able to sustain capital expenditure at reasonable levels. Rescue operational expenditure reduced marginally, travel costs (mainly for training) reduced by 48%, marketing expenditure and call centre operational expenditure reduced as well, leaving an operational surplus of R29 428 520, 19.4% of revenue. For more information, please refer to the Annual Financial Statements on page 78.