CEREBRAL palsy charity Bobath (Scotland) has turned around its financial performance by increasing its revenue while cutting costs.

The Glasgow organisation, which has accountant Jim Campbell as its chairman, saw its net deficit for the 12 months to the end of March this year reduced by more than £137,000 to £55,208, against £192,435 in the prior 12 months.

However within the figure for its most recent financial year the cash deficit was just £8501, down from more than £144,000 in 2012.

The balance of the deficit in both years was taken up by amortisation and depreciation charges.

Bobath (Scotland) brought in around £492,000 of income in the 2012 accounts and has increased that to £567,000 in 2013.

Mr Campbell, co-founder of Campbell Dallas, said the charity needs around £750,000 each year to break even and improve its services.

However he believes it is now in a more sustainable position with further improvements expected during the current financial year.

Results had deteriorated between 2009 and 2011 but were not so serious to ring alarm bells with trustees but the 2012 loss meant a change was needed.

Chief executive Stephanie Fraser, who started in January last year with a remit to turn things around, has helped to cut costs by more than £62,000 in the 2013 financial year.

Ms Fraser allocated more responsibility for budgeting to staff while postal costs were reduced by sending more documents and marketing materials by email.

Meanwhile, Bobath's revenues were increased by £74,508 in a period when it expanded activities to provide therapy to adults - which allowed it to access more grants from charitable trusts - and through more direct engagement with Scottish businesses.

The charity has also tried to expand outside Glasgow with outreach programmes in other locations including Aberdeen.

Ms Fraser, who formerly held commercial development roles at English National Ballet and Scottish Ballet, said the strategy for the charity's events has also changed.

Its annual ball is no longer held after income declined from a peak of £150,000 to just £15,000.

Instead it now has a smaller roster of events which Ms Fraser believes delivers better engagement with potential funders.

She said: "We could have taken the option to just batten down the hatches but decided to go down the other route [and try to expand]."

Ms Fraser believes the lack of certainty over long-term funding prospects for charities means many must become more business focused.

She said: "There is little certainty over what we will get from year to year which makes it very difficult to plan."

Mr Campbell said Bobath's financial concerns were not unique among Scottish charities in recent years.

He said: "We had to really treat it like a business. Cutting costs is not easy but you do that and move on.

"Part of the challenge is still letting people know we are here and what we do.

"But we are looking forward to the future more confidently now."

More than 700 people have been helped by Bobath in Scotland since it was set up 18 years ago.

The Bobath approach, named after its German founders, uses a range of physical therapies to improve an individual's mobility, communication and independent living skills.

Its services include physiotherapy, occupational therapy and speech therapy.