A VITAL “lifeline” for people with mental health issues is toasting 10 years in business – but faces tough times ahead.

Phoenix Enterprises heard at its annual general meeting that the company was “here to stay”.

The company provides paid work for those with mental health issues, and one employee even told the Adver how it helped him recover from a suicide bid.

But its annual report showed there is no escaping the squeeze.

It lost cash last year due to the recession and public spending cutbacks.

And the future is far from certain unless new sources of cash can be found.

“It’s quite unique in a voluntary situation to survive for 10 years,” manager Brian Tyler told the meeting at the Pembroke Centre, in Cheney Manor Industrial Estate.

“You read in the newspapers how difficult it’s been. But we’re still here. Where there’s life there’s hope.

“There are threats. We shouldn’t disguise that. I think this country is still regressing rather than going forward.

“But if you offer a service at the right price then we’ll take on more work than we lose.”

He said he was “uncertain” about the future of public funding they would receive, as the company gets set to reapply for cash from the council and the primary care trust.

“But despite the problems we face we’ll continue to grow if we maintain the positive outlook we’re renowned for,” said Mr Tyler.

The charity’s funds from public sources went from around £60,500 in 2009 to £57,500 in 2010.

Meanwhile its contracts with businesses to provide packing and manufacturing services dropped from around £41,500 to £36,000.

The net result is the charity was forced to dip into its reserves to keep going.

Michael Hamilton, 56, from Walcot, told delegates: “Watch this space: Phoenix is here to stay.”.

Mr Hamilton, a former restaurant manager, was hospitalised around four years ago following an attempt to kill himself.

In the past six months, his psychiatric support workers have been withdrawn and he said if it was not for Phoenix, he could find himself back in hospital.

“I had a mental breakdown. I had no direction, no objectives,” he said.

“I’ve still got a way to go, but I’m learning on a daily basis.

“It’s a lifeline. If I was told next week that it was going to pack up and finish, it’d just make me ill again.”