Statement re the termination of the relationship with Futurebuilders

The Charity has decided to issue this statement in order to address the recent speculation concerning its relationship with Futurebuilders and the termination of that relationship, earlier this year.

In March 2005 the Charity and Futurebuilders entered into an arms-length relationship whereby Futurebuilders made available to the Charity a loan facility and grant to enable the Charity to further its objective of establishing a sustainable nationwide network of after-school facilities with education, for primary school children on school premises. Those arrangements came to an end in March 2008 with the execution of an agreement entered into by the parties. That Agreement contains mutual undertakings as to confidentiality as is entirely customary in commercial agreements of this nature, including within the body of Futurebuilders' Standard Terms and Conditions (which we now understand are under review by Futurebuilders).

Both parties were legally represented and entered into the Agreement freely, following a period of discussion. We have no concerns about the circumstances leading to its execution and have therefore obtained the agreement of Futurebuilders to have the confidentiality provisions varied to enable certain matters to be clarified by this Statement.

It has been reported that the Charity accepted a loan of £1.8 million from Futurebuilders. In fact, £1.8 million was the amount of the loan facility made available in March 2005. However, the Charity only drew down approximately £1.3 million with the last drawdown being made in February 2006. Over the term of the loan (which was scheduled to be repaid over an 11 year period), prior to the conclusion of the parties' relationship, the Charity maintained contractually required repayments (and indeed periodically overpaid) of capital and interest in the total sum of £282,740 to Futurebuilders. The March 2008 Agreement provided that Futurebuilders would receive an immediate lump sum payment of £450,000 by way of repayment from the Charity in place of the 11 year repayment schedule in the March 2005 Agreement.

In addition to the loan facility, Futurebuilders had agreed to make the Charity a grant of £200,000. Of that £200,000, the Charity received £153,600.

We also wish to clarify recent media enquires and a question raised in Parliament by Francis Maude on 10 October 2008:

• Margaret McDonagh has not been a director (Trustee) of the charity since April 2006, and did not have any involvement in either negotiating the original Futurebuilders loan/grant or settling the loan/grant in 2008.
• John Rafferty has not been a director (Trustee) of the charity since July 2006, and did not have any involvement in either negotiating the original Futurebuilders loan/grant or settling the loan/grant in 2008.
• Amanda Delew has never been employed by the charity, nor has she helped to raise any funds. Her role has purely been that of a freelance consultant, advising on the recruitment of a fundraiser on an occasional basis between January 2006 and May 2008. She did not have any involvement in either negotiating the original Futurebuilders loan/grant or settling the loan/grant in 2008.
• The charity is not dependent on the loan/grant it received from Futurebuilders. Indeed, as already indicated above, the last drawdown took place in February 2006. The charity has always received private funding and support, as well as local authority grants.

Catz Club operates around 100 breakfast, after-school and holiday clubs based throughout England that offer children a safe environment in which to play and learn.

• Clubs are Ofsted registered and offer children "educare". This includes working individually with the children on reading, maths and spelling on the PC, as well as involving them in activities such as cookery, drama, gardening, art, dance, sport and healthy eating. A year-long study by the Institute of Education showed that children's academic abilities within school improve substantially by attending the clubs.
• Clubs are staffed from local communities and offer unqualified staff the chance of accredited NVQ Level 2 and Level 3 training in Childcare and Playwork.
• Parents are offered training in First Aid, Positive Play, Child Protection and Food Hygiene.
• Parents are helped with their Working Tax Credits and we engage with local job centres to assist in finding work and training for them.
• The Charity works with the schools to offer free places to a number of children who would benefit from coming to the clubs but who could otherwise not afford to come. In this way, children from deprived homes gain from experiences that would never normally be available to them.

Ends.