I am delighted to open my message with the news that Crescent Purchasing Ltd (CPL Group) has had a very positive year. CPL Group continue to build on a 19-year history of increasing profits. November 2019 will see both the 20-year anniversary of foundation and the 10-year anniversary of purchase by the FE sector. Being instrumental in this purchase, I can honestly say that it has turned out to be one of the best business decisions I have made and is a source of great personal pride.
The purchase of Tenet Education services two years ago is also looking to have been an excellent acquisition. A second year of good profits and growth auger well for the future. My congratulations to Darren and the Tenet team.
CPC has been building significant reserves through the years which allowed us to purchase Tenet in 2017. Since then, with Tenet’s additional input, reserves have been built up again which have allowed the CPL Group trustees to launch a series of initiatives this year to give funding back to our customers in the education sector. This has been a very exciting year watching this new phase of our companies’ development launch, particularly watching member response to these offers of financial support.
The message I would like to pass on to our customers is a thank you for your continued support with an additional comment that the more you use us, the more funding will be available to invest in to the education sector. I would like to thank all our suppliers for their support in what we are trying to accomplish. Finally, my usual thanks to Peter and the whole CPC team for their excellent work during the past year.
Head of Procurement
The Contracting Team experienced a demanding year with the introduction of several new frameworks as well as the retendering of existing frameworks whilst not operating at full staffing capacity for the majority of the year. It is testament to the professionalism and commitment of the team that use of our frameworks continues to grow with an annual uplift in income exceeding 9% across the top 50 frameworks.
The new frameworks included the following:
Retendered frameworks included the following:
The Contracting Team also worked extensively with the Department for Education (DfE) as they look to recommend best value frameworks to the 24,000 schools and Academies under their remit. CPC as at July 2019 have 13 frameworks recommended with an additional 20 under consideration for potential signposting during 2019-2020. This has taken a considerable level of engagement with the DfE and is testament to the efficacy of the CPC contracting programme that so many of our frameworks are under consideration for recommendation by them. We look forward to the opportunities that this partnership will undoubtedly bring for the organisation.
The support for the business continued to be strong during the 2018/19 financial year. Tenet’s two core procurement services have both increased income with the Managed Procurement Service increasing by 5% and Tenet’s On Demand Procurement Service increasing income by 36%.
The support from the education sector and wider public sectors enabled Tenet to ‘gift aid’ £348,732 to Crescent Purchasing Limited. Tenet’s result enables the education sector to benefit twice, from savings and the gift aiding of 100% of our profits
The quantity of placement contracts was maintained with 44 contracts nationwide. Provision of days on-site at each contract ranged from 0.5 to 5 days per week. Each contract providing the customer with on-site bespoke procurement support encompassing, but not limited to high-value tender support, advice and guidance on compliance matters, undertaking of framework further competitions, spend analysis and service reviews.
The enhanced support received from Tenet’s service provided a regionally based management team of procurement professionals and a network of 35 procurement colleagues based around the country, allowing for the sharing of knowledge and best practice.
The demand for this service has increased during 2018/19 as a result of more support being needed from the school/academy marketplace. During the year, Tenet has seen growth of 33% in the school/trust marketplace. Procurement support to Multi-Academy Trusts grew by 170% from 2017/18. Procurement support to the Further Education sector fell by 19% from 37 to 31 commissions. Procurement support to the Higher Education sector increased by 200% from 1 to 3 commissions.
The work undertaken by the On Demand Procurement Support team is cyclical and any decrease in business is deemed to be due to contract terms being extended or not due for retender.
Tenet Procurement Services focuses of delivering procurement support to organisation outside of the education sector. Income increased by 248.06% from 2017/18.
Customers using Tenet Procurement Services are not education sector focused but fully support the ethos of the business and the benefits it brings to their organisation in the development of their future workforce.
The financial year produced a good return and enabled the charity to benefit from additional funds to support their charitable objectives.
The education sector continues to support the business and for this we are truly grateful. The forthcoming year offers more opportunities for Tenet and the CPC to combine resources and deliver further improvements to the services we already deliver.
CPL Group continue to benefit from the acquisition of Tenet Education Services Limited which has donated £835,186 back to the charity since May 2017. The 2018 figures include a 15-month trading period for Tenet Education Services.
CPL Group, in November 2018 hosted its own conference for members and suppliers under the trademark of Procur.Ed. This was hosted at Hopwood Hall College Middleton campus where one of CPL Group trustees is employed. Although footfall was not as high as expected due to numerous factors not least the weather, the quality of contacts made by suppliers was high. CPC intend to hold further conferences in the Midlands and Southern England to attract new members and stimulate increased spend through our frameworks.
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The Board of Trustees, in November 2018 approved the transfer of £500k of unrestricted funds to a designated fund for further reinvestment into the Education sector. Eleven project ideas were discussed and in March 2019 five were approved funding.
The projects below generated significant interest within the sector, particularly the sponsorship fund. It is envisaged that whilst there have been no monies distributed as at July 31 2019, a large proportion of the funds will be expended by November 2019. The long-term aim is to continually reinvest surpluses earned each year back into the sector through sponsorship and other projects.