£1m pay-off for chief of jobless help company

Accounts filed at Companies House show that Bob Martin, the former CEO, was the highest paid director at employment services firm A4E in the financial year ending March 31, 2011.

The accounts state that Mr Martin received emoluments of £306,000 and loss of office payments of £1.047m.

His emoluments in the previous financial year had been £622,000.

Mr Martin had joined A4E in 2007 from Capita, where he was a divisional director.

Mr Martin resigned as a director of A4E on September 30 2010. He was replaced as chief executive by Andrew Dutton, who had been the executive director of A4E’s international business.

An A4E spokesman said yesterday: “Bob Martin’s severance package included A4E purchasing back his share options as part of an exit agreement which reflected the growth of the business over his three-year term as chief execu- tive.”

The spokesman stressed that the severance payment was a “rolled up” three-year incentive, not just an annual award in relation to the payment in the annual accounts.

The results also show that A4E’s profits rose significantly last year, during a period of “change, challenges and opportunities”.

The Sheffield-based company is one of seven organisations chosen to deliver the Government’s Work Programme, which ministers promise will give 2.4 million unemployed people help to find jobs over the next five years.

Under the scheme, approved providers try to find work for claimants, who are referred from job centres, and keep them in work for at least two years.

Providers are rewarded on a payment-by-results basis.

It replaces previous employment support schemes – the New Deal, Employment Zones and Pathways to Work.

In the year ended March 31, 2011, A4E’s profit before income tax was £15.12m, an increase on the £9.64m achieved the year before. Full year revenue increased to £234.33m from £190.99m.

In a report to accompany the accounts, the directors said: “In the UK we have seen a change of Government, (which is) pursuing an ambitious programme of public policy reform that will change the shape of many public service markets.”

A4E provided 270,000 hours of training to 10,000 offenders in prison, and advice to 24,000 people in Community Legal Advice centres during the last financial year.

A4E also helped more than 4,000 people who wanted to start their own business.

A4E is boosting its turnover by expanding overseas.

The directors’ report said: “Our greatest focus for international growth has been Australia and 2010 to 2011 has been a very successful year.

“Our core operations in Job Services Australia (JSA) have developed well, with each of our contract areas receiving a three star rating.”

A4E’s growth in Australia has been driven by the acquisition of Australian Employment and Training Solutions (AETS) in July 2010 for £1.9m.

A4E Australia delivers a wide range of services across New South Wales, Victoria and Tas-mania.

The Australian group has 300 permanent staff, plus 100 casual and contract trainers, who deliver services in areas such as welfare, employment, training and skills acquisition.

The company won contracts to help re-introduce indigenous Australians into mainstream society and train migrant work- ers.

A4E also entered the Indian skills market last year. It has started to deliver skills contracts on behalf of the Indian Ministry for Rural development.

A4E will help people living below the poverty line to find employment.

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