Last year, I reflected on the major financial challenges we faced. These have not gone away, but this year I can also report on the positives.

One service causing significant financial concern has been our residential care unit. Constructive discussion has begun with Aberdeen City Council colleagues with a view to withdrawing this service and developing new provisions for our residents. We are not there yet, but resolution of this issue is now in sight and will represent major progress.

Insecurity remains, at the time of writing, in relation to Housing Support. This excellent service meets all of Aberdeen City Council’s requirements and is responsive to service users, but we await decisions related to the Council’s budget crisis.

Aberdeenshire Council staff have sought to be responsive and with significant steps they achieved full cost recovery for the coming year. We will work hard to build upon these.

NHS funding and voluntary income – from major companies, charitable trusts, local businesses, individuals and social groups – continue to be vital to us. We are striving to develop this further and to elicit vital legacy income.

Our developing social enterprise, Green Tracks, is proving to be a success – both helping people back into the world of work by its innovative approach and achieving satisfactory income levels from its trading activities. This can now become a trading arm of MHA, with the potential to raise and channel more income to support our activities as it develops.

With a new Chief Executive in post, actively working on financial issues, and a new Business Plan in place, we have more cause for optimism than for some time - though no room for complacency!