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Bosses were optimistic a change of direction could save Bedford Group before $20m in losses

Financial records reveal where it all went wrong for Bedford which has now been bailed out by the state government after it entered voluntary administration.

In the years leading up to well-known SA disability employer Bedford Group’s collapse, reports showed huge losses of almost $20m.

Financial records show Bedford Group reported losses of about $19.3m from 2022-24, but bosses were optimistic it was just a period of transition.

Last week, the not-for-profit that employs 1400 workers across 22 sites in South Australia, announced it had made the “devastating” decision to enter voluntary administration before the state government intervened with a $15m support package.

In its most recent annual report in 2023-24, when the company revealed a $9.5m loss, then chairman Richard Hockney, in his last year at Bedford, conceded its result “was not strong on paper”.

At the time, he cited that the company was halfway through a five-year strategic plan which would turn it into “a financially sustainable organisation for the future”.

That strategic plan included its bid to diversify the business into social enterprises, which began in 2022 – including Cultivate Food and Beverage, Green Inc Landscape Construction and Dovetail Manufacturing.

Bedford’s chief executive Myron Mann. Picture: Bedford
Bedford’s chief executive Myron Mann. Picture: Bedford
Bedford chairwoman Janet Miller. Picture: Supplied
Bedford chairwoman Janet Miller. Picture: Supplied

In that same 2023-24 report, chief executive Myron Mann, said the company was at “the low point” financially but expected the situation to improve.

“As we approach the midpoint of our five-year strategy, we are at the low point and the benefits of heavy investment will be incrementally realised across 2025 to 2028,” he said.

It was announced on Sunday that Mr Mann would resign as chief executive of Bedford.

Bedford’s annual profit reports over the last decade painted a picture of a company which had been relatively stable until just before the Covid pandemic in 2020.

As recently as 2018, the company had reported a profit of more than $7m but the following year it lost about $9.5m.

Mr Hockney put those losses down to “the most significant and challenging year on record for Australian Disability Enterprises” in the annual report.

The last year Bedford had posted a net positive result was 2020, with about $2m in the black.

It is understood that Bedford Group received $34m in 2022-23, $30.7m in 2023-24 and $33.5m in 2024-25 for participant packages used for support in the workplace.

Current Bedford Group chairwoman Janet Miller on Friday addressed concerns auditors flagged last year that the business was at risk of collapse.

Ms Miller said the 2022 plan to diversify the business had failed to quickly create the funds “we had hoped”.

Originally published as Bosses were optimistic a change of direction could save Bedford Group before $20m in losses

Original URL: https://www.ntnews.com.au/news/south-australia/bosses-were-optimistic-a-change-of-direction-could-save-bedford-group-before-20m-in-losses/news-story/5a490fb4186d6afaacc7cab5ea0c837a