TOUGH decisions and 'tireless' efforts have seen a hospice slash its deficit despite financial turbulence.

Helen & Douglas House in East Oxford has recorded a boost in donations following a difficult year, in which it made more than a dozen staff members redundant and closed its only city centre shop.

The children's hospice still made a loss in the last financial year, but shrunk the sum from – £1.7m to - £625,000.

In the charity's annual report this month, chief executive Clare Periton said staff had worked 'tirelessly' to cope with the challenges of an 'ever-evolving environment'.

She stressed that improvements must continue, writing: "While we significantly reduced our deficit, which is to be applauded, funding through voluntary donations, retail, and statutory sources remains a significant and ongoing challenge."

Increased donations, and profit from selling flats used by families of patients, helped to improve losses.

In August the Oxford Mail revealed Helen & Douglas House had made 12 staff members redundant, with up to six more set to follow after it shut three charity shop branches weeks later.

This included its first ever charity shop in Oxford's Covered Market, which was its only city centre store.

The new report suggested more could follow if deemed unsustainable, stating: "We do not plan to open any new shops for the foreseeable future...we will continue to make changes and cease trading if a shop is not profitable."

Among concerns highlighted by the document was increased strain from regulations, complexity of youngsters' conditions and a national shortage of registered nurses.

It revealed there was now a waiting list for new respite care admissions in Douglas House, in Leopold Street, which looks after older children and young adults, due to a decrease in staffed beds.

The report also stated the number of volunteers overall had fallen by 100 since last year, and that fundraising was 'increasingly competitive'.

Chair of the charity's trustees Elizabeth Drew wrote in the report: "Amidst such challenges, I am proud and humbled by the commitment and resolve demonstrated by our staff and by the many volunteers and donors who support us.

"We are hugely grateful for the generosity of all our supporters and volunteers, especially during these testing times.

"Without our many supporters, we simply wouldn't be able to care for patients and families who are experiencing the unimaginable."

The hospice in Magdalen Road cared for 279 patients in the last financial year, and requires £5.2m annually to support young families affected by life-limiting conditions.

It relies on donations and fundraising to secure the future of its services, as only 12 per cent of its cost of care is covered by the NHS and local authorities.

The annual report, which covers the financial year ending March 2017, noted donations and legacies (money left in wills) increased by almost £0.4m compared to the previous 12 months.

The charity also generated more than £0.5m this year through the sale of the hospice's flats in Leopold Street, which had been used by families of patients.

Relatives of patients can still stay at the hospice itself in one of several family suites.

Chief executive Ms Periton reiterated the ethos at the charity's core.

She wrote: "I am privileged to have been able to serve the charity for over a decade and never forget how important it is that we can stand alongside families, at sometimes the gloomiest of times, and make a difference.

"That might be by making a cup of tea for an exhausted mother, playing on the magic carpet with a sibling, or providing complex symptom control for a child who is suffering."

The charity has set out objectives for the next five years, including to secure financial sustainability and continue delivering high quality of care.

Legal proceedings against the charity are still pending, after a coroner ruled in July that a young woman's death at Douglas House was partly 'contributed to by neglect'.

To find out more about donating to, working for or volunteering at Helen & Douglas House, visit helenanddouglas.org.uk.