Total income at disability charity Scope dipped slightly last year, mainly as a result of a decline in sales at its charity shops and limited growth in statutory fees.

The disability charity recorded total revenues of £103m in the year to 31 March 2013, compared with £104.3m the year before.

The cost of generating funds crept up from £28.4m to £31.1m but the charity said this was due to further investment in longer-term individual giving fundraising, which will generate more income in the future.  Fundraising income during the year was up 10 per cent on the year before, from £14.5m to £15.9m, driven mainly by legacies and individual giving.

Gross income from Scope’s charity shop chain, at £22.6m, was £700,000 lower than in 2012, a result the charity blamed on poor weather and tough economic conditions. Fee income was also lower, falling from £60.8m to £58.5m, mainly because the charity closed two schools during the year.

Spending on charitable activities fell by 3 per cent to £70.8m, also driven by the closure of the schools.

The current reserves policy sets a target for free reserves of £9.8m but at the end of the 2012/13 financial year these were just £7m, £1.5m lower than a year earlier. The charity admitted that it has been dipping to its reserves in order to boost its people, influence, brand, shop numbers and fundraising capacity, and is now moving into a new phase of its strategic plan.  As a result it plans to review the existing reserves policy over the next six months to ensure alignment with the strategic direction.

During the 2013/14 year Scope intends to review its entire services portfolio and put plans in place to radically transform it so that it fully supports the new strategy.  The charity also intends to make a “step-change” in its visibility and profile: “We have made good progress in recent years, especially in the media, but our overall brand recognition is far too low if we are to be a serious force for positive change across society.”

The average number of full-time employees during the year decreased slightly from 2,751 to 2,710 and there was a corresponding drop in staff costs from £64.4m to £63.4m. The salary of its highest earner, CEO Richard Hawkes, stayed within the £130,000-£140,000 band for the third year running.

The charity finished the year with a £564,000 deficit, compared with a £102,000 surplus the year before – but this was in line with expectations.

 Download the 2013 charity  shops survey here.