Foster company Futures for Children ate into its cash reserves after suffering a loss of almost £30,000 and paying dividends totalling £274,000.

The firm was left with almost £952,000 in the bank at the end of March last year, down from almost £1.3 million a year earlier, according to its latest accounts filed to Companies House.

The Maidstone firm saw its pre-tax profits fall to £110,000 from £390,000 as margins decreased by 1.4% and was subsequently hit with a £153,000 tax bill.

Turnover increased to £12.7 million, up from almost £12 million in 2014, which directors said had remained in line with expectations “due to both local authority and economic pressures”.

Almost all the firm’s customers are local authorities, for whom it finds foster placements for children and young people through its network of carers.

Its operating profit declined to £275,000, down from £517,000 a year earlier.

Bosses declined to comment.