Asda boost for initiative
Carrier bag levy gives lift to SIS
Total income including loan charges, management fees and grants rose 13% to £1.32 million.
It was underpinned by the additional management fees generated from an extended partnership with Asda.
The Asda Community Capital fund was set up by SIS to use the money raised from the single-use carrier bag levy.
Using 100% of proceeds, compared to just 50% in the previous year, these funds support a small loans programme and the running of the new Asda Social Enterprise Supplier Development Academy.
It provides opportunities for social enterprises, in Scotland and Wales, to reach the supermarket shelves.
Over the course of the year, SIS has invested a total of £4.3m in more than 50 organisations throughout Scotland.
The total includes £328,000 invested from Asda Community Capital, £1.8 million from SIS Community Finance in 24 projects, £900,000 from the Social Growth Fund in three projects and a further £1.6m from other third party funds managed by SIS.
Nick Kuenssberg, SIS chairman, said: “Social Investment Scotland has delivered another year of significant development in financial, social impact, and corporate governance terms, firmly establishing itself as Scotland’s, and one of the UK’s, leading responsible finance providers.
“Our success has been such that we have outgrown the five year strategy outlined 2013 and launched a new, more ambitious strategy to be delivered by 2020.
“Based on a year of major achievements, continually growing investments and financial success, SIS can look forward with confidence to the implementation of this new strategy.
“At its heart is an ambition to extend the remit of SIS to include hybrid models of social enterprise incorporating both financial and social objectives, stimulating the creation and growth of social enterprise and working with and supporting young social entrepreneurs.”
Alastair Davis, chief executive, said: “Despite another year of economic volatility, we have seen both a sustained demand for social investment and a growth in supply of investment capital from a range of sources.
“The variation of available funding is enabling SIS to provide customers with a greater range of financial solutions better suited to their requirements which, in turn, is helping them to deliver greater social impacts within their local communities.
“With our help, more social enterprises and communities businesses across Scotland are thinking about taking on investment as a means of growth and achieving long-term sustainability.”
Other highlights for SIS during 2015/2016 include:
+ further development of the Social Growth Fund in partnership with Big Society Capital and the Scottish Government;
+ the launch of and full investment of SIS Community Capital, the first Social Interest Tax Relief Fund in UK, raising and investing £399k from individual investors, an initiative that won the prestigious UK Cabinet Office New Social Investor Award;
+ further maturing of the corporate governance regime with internal audit undertaken by RSM and a rigorous approach to strategic risk leading to the incorporation of new credit risk and capital and finance committees involving the recruitment of further high calibre committee members;
+ and the first responsible finance provider outside the USA to complete the demanding Aeris credit rating procedure gaining an exemplary AAA2 rating.