Reserves

Over recent years, BBP has held between 3 and 6 months of committed staff & overhead costs in reserve.

This has fluctuated with the level of trading and funding in general.

BBP's target is to have 6 months of such costs held in reserve to cover unforeseen trading conditions, most notably:

• A sudden downturn in income

• Increased supplier costs

• Increased 'establishment' costs - rent, rates, utilities

• The need to shut down operations temporarily

• Cashflow problems arising from a slow-paying customer

The precise level of reserves is reviewed each month, as part of the monthly accounts report to directors.

The Director Group will initiate an urgent review should reserves either:

• Fall below 4 months of such costs

• Exceed 8 months of such costs

The Director Group will meet with the Operations Group to share ideas and decide on actions.

It is worth noting that BBP's reserves don't need to be as high as in some other organisations as we own our building which is a valuable asset.

Policy written January 2025 / To be reviewed 2027