Our capability to help the most vulnerable was enhanced
The capability of the Deaconess Foundation to respond to societal challenges improved in 2019. The Foundation, its service provider for the disabled Rinnekoti and its subsidiary Diakonissalaitoksen Hoiva Ltd provide effective social welfare and health care services on a nationwide basis.
The Deaconess Foundation is a substantial operator in the social welfare and health care sector particularly in the Helsinki metropolitan area but with a presence in other growth centres in Finland too. At the end of the year, the Rinnekoti Foundation, which provides services for the disabled and clients with autism-spectrum conditions, merged with the Deaconess Foundation. Thereby the Deaconess Foundation became Finland’s largest social enterprise providing social services for special needs groups.
“We now have a robust and wide range of expertise in catering to special needs groups and can provide services at a high standard of quality and thus help prevent social exclusion,” says Olli Holmström, the CEO of the Deaconess Foundation.
Strong financial footing
The Deaconess Foundation is on a strong financial footing, and business operations showed a profit for 2019.
“As a social enterprise, our principal aim is to do good in society at large. Profitable business and investments are for us above all a tool for building a better and more equitable society. The better we are at this, the more we have to give back to society,” says Holmström.
Last year, the Deaconess Foundation spent nearly EUR 4 million on public social welfare work, of which more than EUR 1 million on preventing social exclusion among young persons, for instance.
- Income from actual operations in 2019 was EUR 116 million, compared to EUR 77 million in the previous year. The income increase was due to the imputed merger profit resulting from the merger of the Rinnekoti Foundation (EUR 40 million). If this non-recurring item is excluded, the profit for 2019 was roughly the same as for the previous year.
- The profit for the financial year was EUR 96 million (2018: loss EUR -0.4 million). The profit came from the gains on the sales of shares in Terveystalo plc (EUR 55 million) and the imputed merger profit from the merger of the Rinnekoti Foundation (EUR 40 million). If the aforementioned non-recurring items are excluded, the profit for the financial year was just over EUR 1 million.
- Profit on actual operations was declared as EUR 36 million (2018: loss EUR -5 million). Excluding the imputed merger profit, the result would have been a declared loss of about EUR -4 million.
- The market value of investments as at the end of 2019 was about EUR 349 million (2018: EUR 268 million). The assets comprised 46 % real estate, 47 % bonds and 7 % share investments. The equity ratio as at the end of 2019, including Rinnekoti, was 83 % (2018: 88%).
Putting our hearts into it
Despite the uncertainty caused by the recent coronavirus pandemic, the Deaconess Foundation has a positive outlook. Operations based on values, focusing on our core competence and improving our functions all contribute to a solid footing for the Foundation to carry out its fundamental mission. In 2020, the Deaconess Institute will be investing particularly in its personnel.
“The key to future success is ensuring the wellbeing and expertise of personnel. We want to be the boldest workplace in the social welfare and health care sector, employing people who not only bring their expertise to the table but also put their hearts into everything they do,” says Holmström.
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