As I write these words in July, we have just submitted a planning application for two major extensions to the hospice premises at Winsley, one to extend the existing Day Care and therapy services, the other to provide dedicated space for the expanding education service.

Much thought and energy has been injected into the detail of the plans by both senior staff and trustees over a period of a year, involving consultations with staff, patients and volunteers. We believe this project will cater for the developing needs of the hospice for the next 15-20 years. Let us hope that by the time you read this in October, the district planners have confirmed they feel the same way.

These are exciting times for Dorothy House and I am privileged to be starting my chairmanship at such a time. However, to take over from Helen Chalmers is indeed a hard act to follow as she has provided strong and effective leadership over the past three years. I am personally delighted that she is remaining as a Trustee and available to give us all the benefit of her professional expertise and general wise counsel.

This past year has been a particularly busy one for both staff and volunteers as the additional funding that we have negotiated with the four local NHS Primary Care Trusts (PCTs) has enabled us to develop services in line with the hospice's five-year strategy. These included a offering up to 24-hour Hospice at Home care and lymphoedema key workers across the whole area we serve. At the hospice, additional Day Care sessions are now offered for patients earlier in their illness and on discharge from the main Day Care. The social worker for children and a adolescents extended her hours to full time to meet demand from families pre and post-bereavement. A joint educational post with the University of the West of England has been funded to offer more education and training to health and social care professionals. There has been an additional consultant session each week at the Royal United - Hospital.

There was a satisfactory financial outcome to last year, with another good year for legacies. As ever, we are most grateful to all those who remember Dorothy House in their will.

My particular interests have for many years been in fundraising and also the shops. Fundraising remains hard work and the competition from the many other charities is ever present. To achieve its targets the team has had to create more innovative events and involve more people in the community we serve. This year's new events have included the Valentine Ball at Longleat and the Streets Ahead Challenge.

The retail team has continued the programme of upgrading and

refurbishing our existing shops. We also added a new shop in Corsham and one in Argyle Street, Bath, making 18 in all. This programme, together with a stronger management structure, has resulted in an excellent increase in net profit of more than £80,000 over 2002/03.

In September, the Princess Royal visited the hospice and spoke to many patients and staff. As our Royal Visitor, she will continue to make such visits as and when her diary permits.

I was also delighted earlier this year to welcome to Dorothy House Her Grace, The Duchess of Beaufort, who has generously agreed to become our first Patron.

I would like to thank the two Trustees who retired during the year for their dedication and advice. Julie Farrar completed nine years on the board and made a tremendous contribution, particularly in helping us adopt a more professional and proactive approach to both fundraising and retail. Kevin Allen was not with us for quite so long but his wise words on matters financial were much appreciated.

They were replaced by two new Trustees who I welcome to the Board, Sheila Reiter comes with wide retail experience while Brian Terry is a very experienced risk manager working with local NHS trusts.

The Trustees are all aware of the loyalty, team work and dedication of the Senior Management team, the Staff, Volunteers and all those who have given generously be it financially or through their time and talent, which makes the Board's governance role easier to achieve.

On their behalf, I thank you all for a great year's work.