ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 CONTENTS Reference and administrative information Board report Auditors, report 9~13 Statement of Financial Activities 14 Balance Sheet 15 Cash Flow Statement 16 Notes to the financial statements 17-32 Registered charity number- 1002224 Company number - 02540814
ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 REFERENCE AND ADMINISTRATIVE INFORMATION WORKING NAME Ara SOLICITORS Anthony Collins Solicitors 134 Edmund Street BIRMINGFIAM B3 2ES AUDITOR Burton Sweet Limited The Clock Tower 5 Farleigli Court Old Wesloii Road Flax Bourton BRISTOL BS48 1UR BANKERS HSBC 62 George Wliite Street Cabot Circus BRISTOL BS13BA PRINCIPAL ADDRESS Kiiig s Court King Street BRISTOL BS14EF KEY PERSONNEL Chief Executive Director of Finance Director of Op8rcilions Conipany Secrelary Company Secretary Director of Gainblinglcym ru Graham Eii£Jland Andrew Ridley Robbie Tliornliill Andrew Ridley (resigned Deceniber 20241 Stuart Will lams (appointed Deceniber 20241 Helen Kovacs (resigned October 2024}
ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 BOARD REPORT The Board present their report for the year ended 31 March 2025. Due to the Board Members, status as directors under the Companies Act 2006, this report conslilules a director's report as required by the Companies Acl 2006, and has been prepared taking advantage of the exemptions conferred by Parl 15 of this act. The Board Members during the year and to date of approval of the accounts were- D Thomas (Chair) A Colliiis (deceased April 20241 C Shepherd L Copsie J Hitclien M Baiiissy DEva D Kingham (appointed July 2024) GOVERNING DOCUMENT The Cl)arily Wcls eslc1blislied in 1987 by incorporation as a compciny limited by guarantee. Coiiseq uenlly, Ilio governing instrument of Ilie Cliarity is its Memorcliidum and Articles of Association. The Charity is reglstered willi tlie Cliarily Commission under nuniber 1002224. Tlie Company registration niimber is 02540814. CHARITABLE OBJECTS The Charity's objects are.. The relief of those in need whose liealtli is at risk or who are otlierwise discldvaiitaJc ed due lo difficulties tissociated witli mental health or detriniental use of or depeiideiicy on subst<?iices (including but not liiiiited to c11cohol and drugs of any kind) or delrimeiilal beh<iviours {incliidiiig but Iiot liniiled lo gclmbliiig) and the education of the public ori such matters by such means as Ilie trustees in their discretion think fit. PUBLIC BENEFIT Ara is one of the largest voliinlary organisations providing addiclion and meiilal health services in the South West and Wales. In 2024125 Ara offered a wide range of treatment and siipport to benefit people witli drugs, alcoliol, gambling and niental liealth problems in Bristol, North Somersel, Soulli Gloucestersliire, Glouceslersliire, Soniersel, Corriwall and Wales i ncliiding.. Hoiising support service the largest siiigle conlracled service of ils kind in Bristol providiiig accomriiodatlOTi aiicl support lo over 250 people with drLig and alcoliol prol)lems at aiiy oiie lime. A key element of the Brislo Honielessiiess Pitlhways service.,
ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 PUBLIC BENEFIT (continued) Prlson Resettlement Services services that help people to resettle into appropriate accommodation on release froni local prisons., Housing Flrst Service working in Bristol to house and support people at significant risk of homelessness; Speclallst Hoiislng Support - Ara's team promotes tenancy sustainment and prevents honielessness for people with drug and alcohol problems., Gambllng Coiinselling & Commiiiiity Engagement Ara is cominissioiied by GambleAware to provide counselling for people experiencing problems with g¢imbling', Gambling Youth EdLicatlon Ara works willi young people and otlier professionals to improve understanding of the risks rolaling to gambling. During the year, Ara charged for relit and Iiouseliold service charges. These charges were Pciid for by Local Autliorilies and service users respectively. Ara provides i)0 private benefit. Board Meinl)ers have coiisidered public benefit guidaiice issued by tho Charity Commissioii. ACHIEVEMENTS AND PERFORMANCE 2024125 Ara continues to havo a major impact on the lives of those suffering from addiction and mental liealth problems. Key statistics are set out below.. HOUSING SERVICE 243 people housed in our substance misuse accommodation. 880/0 occupancy across our housiiig accommodatioii (business plan target 92 %). 98% of service users were satisfied with the service. 1000/0 of service users would recommend tlie service lo olliers.
ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 ACHIEVEMENTS AND PERFORMANCE 2024125 (continued) SPECIALIST HOUSING SUPPORT 285 clients supported across the service and 1100 attendances at community engagement groups set up by Ara. GAMBLING TREA TMENT & COMMUNITY ENGAGEMENT SERVICE 1764 clients received counselling. 99% clients were satisfied with the service they received. Average well-being score improved by 8 points because of Ara. 11944 people were offered information, advice and guidance about gambling harms. 1383 people attended tlie "Battling tlie Odds" programme for people connected lo the Armed Forces GAMBLING YOUTH EDUCA TION 867 professionals were educated in our gambling awareness programme. 7212 young people took parl in our programnie to raise awareness of gambling harms. CRIMINAL JUSTICE SER VICES 448 referrals from 27 prisons to Ara's Prison Resettlement Service an increase of 69 % from the previous year. 100 people were directly accommodated oli their release from prison. HOUSING FIRST Ara began its Bristol Housing First service in 2024125. This service will house aiid support 28 people wlio otlierwise would liave been al a very higli risk of being homeless. As part of this project, Ara acquired 15 flats in Bristol funded by a graiit of £1,340,000 from Bristol Council and loan facility of £1,415,000 from Social and Sustainable Capital.
ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 ACHIEVEMENTS AND PERFORMANCE 2024125 (continued) RISK MANAGEMENT The Board actively reviews the major risks that the Charity faces on a regular basis and believes that maintaining our free reserves at the levels stated on page 7 will provide sufficient resources in the adveiil of adverse business conditions. The Board has approved a Risk Policy and Risk Register that identifies the main risks facing Ara, the potential impact of tliese risks, coiilrols already in place to mitigatc tlie risk aiid what action needs to be taken. Loss of a major contract is a potentially significant risk. To deal with this Arc1 lias procedures lo moiiitor contract performaiice and to ensure that strong working relationsliips are niainlained with comniissioners. The loss of key staff and Board Menibers is aiiother potential risk faciiig tlie organisation. The docunientalion of all policies, procedures, aiid successioii planiiiiig lielp to niinimise the impact of this risk. Failure to provide the required level of support to cl ioiils 1L nd patients is also a potential sigiiificant risk. Client risk assessnieiils ciiid detailed policios and procediires are in place to mitigate tliis risk. LOOKING AHEAD Tlie coming year also bririgs several exciting opporlunilies with new and expanded services. The Charity's main objectives in the coming year include.. siiccessfully delivering the new Bristol Housing First service., expaiiding ganibliiig treatment services, witli the aini of couiiselling 2500 people., growing Ara's criminal jvstice services. achievirig 92 /0 OCCLipancy in our houses., rolliiig OLII the Actions for Living project to develop new ways of supporting people witli subslaiice misuse problenis., applying to become a Registered Provider of Social Housing.
ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 BOARD REPORT continued STRUCTURE, GOVERNANCE AND MANAGEMENT A Board of Trustees governs Ara. Regular briefings are held for Board Members to provide them with detailed information about the way in wliich services are designed and delivered as a means of underslanding the regular performance information provided for moniloring purposes. Ara's Senior Management Team is Graliam England (Chief Executive), Andrew Ridley (Director of Finance and Deputy Chief Executive), Robbie Thornl)ill (Director of Operations}. The pay and terms and conditions of the Senior Management Team are reviewed annually by the Board. During 2024125 Ara had an average of 76 full time equivalent staff and 40 volunteers. RECRUITMENT AND APPOINTMENT OF TRUSTEES A skills audit is regularly conducted of Board Members lo identify gaps in expertise on the Board and lo assist with recruitnienl. Recruitment of new Members with appropriate skills and experience is undertaken tliiough individual contact, networking and advertising. TRUSTEE INDUCTION AND TRAINING New Trustees are given tlie Board Member's handbook on joining, which includes the duties and responsibilities of Trustees and the slruclure, orgaiiisalion and management of the charity. Induction training is also provided. FINANCIAL POSITION OF THE CHARITY The Board can confirm Iliat the Charity's assets are available and adequate lo fulfil the obligations of the cliarity on a fund-by-fund basis. The Cliarily had net assets of £3,220,103 al 31 March 2025 of whicl) £2,602,924 is held in LAnrestricted funds. The Charity's net assets increased by £1,565,939 during the year largely as a result of with the purcliase of Ilie 15 flats in Bristol fuiided by a grant and a loaii. Whilst Ara does receive small value donatioiis it does not actively engage in fundraising.
ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 BOARD REPORT coi)tinued INVESTMENT POLICY The Board approved an Investment Policy in August 2024. The policy outlines the Charity's attitude to risk and the ethical issues that iieed to be cor)sidered when decisions on investments are taken. RESERVES POLICY At 31 March 2025, the Charity liad total reserves of £3,220.103. Tlie balance on restricted reserves was £ 617,179. Movements in restricted funds are sliown in note 14 to tho financial stalerrients. Desigiiated reserves tolalled £2,066,301 witli £1,918,626 relaling to tlie fixed Asset fuiid wliich is equivaleiit lo tlie estimated value of reserves tliat can only be realised from tlie salo of fixed assets. Designclted reserves are also used lo fund tlie Charity's 'Aclioiis for Living project, fund tlie costs of applying to become a Regislered Provider of Social Housillg and to meet the costs of property refurbishment. The Charity's Reserves Policy is to hold two to three months operaliiig expenses on Liiirestricted activities in liquid Liiirestricted funds. This curreiitly eqLiales to aroLind £420,000 f.630,000. At 31 March 2025 Ilie liquid unrestricte(I reserves were £536,623 (2024, £608,717). Tlie Board reviewed its resoivos target in ALigust 2025 and coiisider this to be adequate given the duration of tlio Cliarily's main contracts, potential liabilities sliolild tliose contracts come to an eiid and the plaiiiied expansion of tlie organisation. TRUSTEES STATEMENT OF RESPONSIBILITIES The Trustees (wlio are also directors of Addictioii Recovciy Agoncy for the purposos of compaiiy law) c1re responsible for prepariiig tlie Trustoes, Rcport (incorporatiiig the directors, roportl aiid the finaiicial statements iii accordance with applicable law and Uiiited Kingdoni AccoLI nting Standards, including Financial Reporling Staiidard 102., Tlie finaiicial Iloportiiig Staiiclard 1cpplicable iii the UK aiid Republic of Ireland (United Kingdom Acc8Pted Accounting Practiccl.
ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 BOARD REPORT continued TRUSTEES STATEMENT OF RESPONSIBILITIES Company law requires the Trustees to prepare financial stalements for each financial year that give a true and fair view of the state of affairs of the charitable company and of Ilie income and expenditure of the charitable company for that period. In preparing these financial stalemenls, the trustees are required to.. select suitable accounting policies and then apply them consistently., observe the methods and principles in the Charities SORP., make judgments and estimates that are reasonable and prudent- stale whether applicable UK Accounting Standards have been followed, svbject to any material departures disclosed and explained in the financia statements., and prepare Ilie financial statements on the going concern basis unless il is inappropriate to presume that the charitable company will continue in business. The Trustees are responsible for keeping adequate accounting records Ilial disclose with reasonable accuracy at any lime Ilie financial position of the cliaritable conipany and enable Iliem to eiisure that the fiiiancial statements coniply with the Conipanies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and deleclion of fraud and ollier irregularities. In so far as the Trustees are aware, Iliere is no relevant audit information of which the cliaritable company's auditor is unaware,. and the Trustees have taken all steps that they ouglit lo niake tliemselves aware of that information. BY ORDER OF THE BOARD DAVID THOMAS CHAIR DATE 19 SEPTEMBER 2025
ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF ADDICTION RECOVERY AGENCY LIMITED OPINION We have audited the financial statements of Addiction Recovery Agency Limited (tlie "Charity") for the year ended 31 Marcli 2025 wliicli comprise the Statenient of Finaiicial Activities, tlie Balance Sheet, the Cash Flow Statement and notes to the financic11 stalenienls, iiicliiding a suniimary of sigiiificanl accounting policies. The fiiiaiicic11 reporting franiework tliat has been applied in their preparation is applicable law arid Uiiited Kingdom Accouiiling Slaiidards, includiiig Financial Reportiiig Standard 102.. The Finaiicial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the f inaiicial statements.. give a true and fair view of tlie state of tlie Charity's affairs as al 31 March 2025 and of ils income and expenditure for Ilie year then elided. have been properly prepared in accordaiice with United Kiiigdom Generally Accepted Accouiiliiig Practice., have been prepared in accordance witli tlie requirements of tlie Companies Act 2006. Basis for oplnioii We conducted out audit in accordaiico with iiilernalional Staiidards in Auditing {UK) (ISAS (UK}} arid applicablc law. Our respoiisibilitios uiider those slaiidards are f(Irtlier doscribed in tlie Auditor's respoiisibilitios for the audit of tlie fiiiancial statements section of our report. Wo are iiidependeiil of the Charity in accordance with tlie etliical requirenieiits that are relevant to our audit of the financial statemerits in tlie UK, iiicluding tho FRC'S Etliical Standard, and we liave fulfilled OLir other elliical rosponsibililies in c1ccordclnce willi tliese requironionls. We l)olieve Ihal tlie au(lit evidence we liave obtaiiied is sufficient and appropriate to provide a basis for our opinion.
ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE ADDICTION RECOVERY AGENCY LIMITED continued Concliisions relatlng to golng concern In auditing the financial statements, we have concluded that the directors, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainlies relating lo evenls or conditions that. individually or collectively. may cast significant doubt on the charity's ability to continue as a going concern for a period of al least Iwelve montlis from when tlie financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern as described in tlie relevant sections of this report. Other information Tlie trusteos are responsible for the other information. The other informcltion con)prises the infornialioii included in the annual report other tlian tlio financial statements and our auditor's report thereon. Our opinion on the financial slatemeiils doos not cover the other information and, except to the exlenl otherwise explicitly slated in our report, we do riot express any form of assLirance conclusion Ihereon, I n connection witli our audit of the financial statements, our responsibility is to read the other informalioii and, in doing so, consider wliethor the other infornialion is materially iiiconsislent willi the financial slalements or our kriowledge obtained in Ilie audit or otherwise appears lo be materially misstated. If we identify sucli nialerial iiiconsisleiicies or apparent iiiaterial n)isstatenieiits, we aro required to delerniiiie whether tliere is a material niisslatement in the financial statemeiits or a material rtiisslatement of Ilie otlier information. If based, on the work we have performed, we coiicILide Ihtlt there is a material misstatement of this other infornialion, we are required to reporl tlie fact, We have noll)ing to report in this regard. Opinions OTI Otlier matters prescribed by the Compaiiies Act 2006 I ri our opiiiion, based 011 the work uiidertakon iii tlie course of tlie audit- Ilie information given in the trustees, report {incorporating the directors, roporl) for Ilie fiiiL?Iicial year for wliicl) tlie financial statements are propdied i coiisistent witli the financial statements., and the directors, report has been prepared in accordance willi applicable law requirements. 10
ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF ADDICTION RECOVERY AGENCY LIMITED continued Matters on whlch we are requlred to report by exception In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material rnisslatemeiits iii the directors, report. We have nothing to report iii respect of tlie following matters in relation to whicli the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept or returns adequate for our audit have not been received from brariches visited by us,. tlie financial statements are not in agreement with the accounting records and returns., certain disclosures of trustees, remuneration specified by law are Iiot mado-, or we have not oblainod all the information and explanations necessary for the purposes of our aLidil',or the trusleos were not entitled to prep¢ire tlie financial slalenienls in accordance with tlie small compaiiies, regime and take advantage of tlie sinall conipaiiies, exemptions in preparing Ilie directors, report and froni the requirement to prepare a strategic reporl. Respoi)slbllities of trustees As explaiiied more fully in Ilie trustees, responsibilities slalerrienl, tlie Iruslees are respoiisible for tlio preparation of Ilie financial slaleiiients and for boing satisfied Iliat they give a true and fair view, aiid for sucli internal coiitrol as they deterniine is necessary to enable the preparation of financial statements that are free from material misstatement, wliether due to fraud or error. In prepariricJ the fiiiancial stalon)eiits, the trustees aro responsit)le for assessing tlie Cliarily's ability to coritiniie as a goiiig concerii, disclosiiig, as applicable, matters related to going concern and using tlie going concern basis of accouiiling ui)less tlie trustees either iiitend to liquidate tlie Charity or to cease operations, or have no realistic alternative but to do so. ALiditor's responslbilities for the alid it of the financial statements Our objectives are to obtain reasonable assLiraiice aboLIt wlielher the financial statements as a wliole are free frorri material misslalemenl, wlietlier due to fraud or error, aiid to ISSLie ali aLidilor's report tlicil inclLid8s oiir opiiiioii. Reasoiiclble assuraiico is a liigh level of assuraiice but is iiol a guaraiilee that ali ciudil conducted in accordcince witli ISAS (UK) will always detect a material niisslalenient wlien il exists.
ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 INDEPENDENT AUDITORS, REPORTTO THE MEMBERS OF ADDICTION RECOVERY AGENCY LIMITED contiiiiied Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate. they could reasonably be expected to influence the economic decisioiis of users laken on the basis of these financial statements. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows- we identified the laws and reglilations applicable lo the charity Ihroligh discussions with directors arid other management, and from our knowledge and experience of the sector., we focused on specific laws and regulations which we considered may have a direct material effect on the financial slatenienls of tlie operations of the company, including the Company's Act 2006, taxation legislation and data protection, anti-bribery, employnieiit, environment and healtli and safety legislation., and we assessed the extent of compliance with the laws aiid regulations identified above throLigTri making enquiries of nianagenient and inspecting legal correspondence and remaining alert during the audit for any indications of non-compliance, Our audit procedures in relation to fraud included bul were not limited to.. making enquiries of tliose charged with governance as to where they considered tl)ere was susceptibility lo fraud, their knowledge of actual, suspected and alleged fraud., discussiiig amongst the engagemeiil team tlie risks of fraud. Jrlining an understanding of tlie internal coiilrols in place to mitigate risks of fraud Ic nd iioii-oonipliance with laws arid regulations. testing journal entries to identify unusual Ir1c Iisactions. assessing whether judgemeiits and assumptions made in determining the accounting estimates set out in accounting policies were indicative of potential bias,. and iiivesligaling tlie rationale beliind significant or unusual transactions. 12
ADDICTION RECOVERY AGENCY LIMITED REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF ADDICTION RECOVERY AGENCY LIMITED coiitinued There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence if any. Material misstalemenls that arise due lo fraud can be harder lo delect than those that arise from error as they may involve deliberate concealment or Gollusion. A further description of our responsibilities for the audit of the financial slalements is located on the Financial www.frc.or Reporting Coiincil's website at . uklauditorslaudil-assurance-elhicslauditors-res This description forms parl of our auditor's report. onsibililies-for-lhe-audil. Use of our report This report is made solely to the Charity's members, as a body, in accordance with Chapter 3 of Part 16 of tlie Companies Acl 2006. Our audit work lias been undertakeii so that we miglit slate to Ilie Cliarily's members those mallers we are required slate in Ilieni in an auditor's report and for iio other purpose. To the fullest exleiil permilled by law, we do not accept or assiime responsibility lo anyone ollier than the Cliarily's menibers as ci body, for our aLidil work, for tliis report, or for tlie opinions we have formed. Josliua ston ACA {Seiilor Statutory Audltor) For and on behalf of Burton Sweet Limited The Clock Tower 5 Farleigh Court Old Weston Road Flax Bourlon Bristol BS48 1 UR Dale..
ADDICTION RECOVERY AGENCY LIMITED STATEMENT OF FINANCIAL ACTIVITIES (Incorporating income and expendlture account) FOR THE YEAR ENDED 31 MARCH 2025 Unreslricled Funds Reslricled Fuiids Total funds 2025 Total funds 2024 nr>le INCOME AND EXPENDITURE INCOME FROM. Donations Other Trading Aclivilies.. Reiilal income and related service5 Inveslmenls.. Inleiosl receivable Charitable Aolivilies Granls, ¢onlracls and 18es'. GaTnbling Service Housillg Suppoil & R88gllletnenl Soinor5el Services Glouco$ler5hire Services sub lotal Other income TOTAL INCOME 6,134 62.000 68,134 120,971 10,QQQ 10.000 10.020 31,783 31.783 24.657 179,889 2,275,501 2,105.229 1.5Jf4.500 ?.285,118 3.830,001 1,590,216 2,224.086 80.813 9.569 3,904.684 2,455,390 17,389 2,520,696 3.659.729 6.115,119 11,389 6.242,425 3.721.729 4.060.332 IXPFNDITURF. ON.. Cherilable aclivilios.. Ganiblincj Sorvice Hoiising Supi)orl & Resellleinenl Soiiiersel Services Glouceslershlre Setvices 74,892 2,440,880 1.959.297 201,417 2,034, 189 2,642,297 1,644.568 2.163,3141 71,825 9.569 TOTAL EXPENDITURE 2,515,772 2,160,714 4,fj76,48S 3,895.276 Nel incomo lor tho year 4,924 1.561.015 1,565,939 165.056 Balance brought forward al 3 April 2024 1.258.000 396.164 1,654,164 1,489,108 Transfers 1.340,000 -1,340,000 BALANCE CARRIED FORWARD AT 31 March 2025 12, 14 2,602,924 617,179 3.220,103 1,654,164 rhè notes on paggfj 17 10 32 lorin parl ol these accouiils. All ol the resiills relate lo continuing operations. Prior year compafalives are inclLided In nole 19. 14
ADDICTION RECOVERY AGENCY LIMITED Icompany number 02540814, registered charity number 10022241 BALANCE SHEET AT 31 MARCH 2025 note 2025 2024 FIXED ASSETS Tangible assets 3,384,596 709,648 CURRENT ASSETS Debtors Cash al bank and in hand 814,198 1,321,686 659,445 1,076,767 2,135,884 1,736,212 CREDITORS.. Amounts falling due within one year 10 -774,294 -644,605 NET CURRENT ASSETS 1,361,590 1,091,607 TOTAL ASSETS LESS CURRENT LIABILITIES 4,746,186 1,801,255 CREDITORS.. Amounts falling due after one year -1,526,083 -147,091 NET ASSETS 3,220,103 1,654,164 FUNDS.. Reslricled Unreslricled Designated General 617,179 396,164 15 12 2,066,301 536,623 93,404 1,164,596 15 3,220,103 1,654,164 The accoLints have been prepared in accordance wilh the special provisions of Part 15 of the Com panies Act 2006 relating to sniic11 companies. Approved by the Board on 19 Seplember 2025 and signed on its behalf by DAVID THOMAS ICHAIRI The notes on pages 17 10 32 form parl of Iliese accoLints 15
ADDICTION RECOVERY AGENCY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 1. ACCOUNTING POLICIES al Accounting convention The financial statements have been prepared under the liistorical cost convention and in accordance with the Statement of Reconimeiided Practice Accounting and Reporting by Charities preparing tlioir accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021 issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom aiid Republic of Ireland {FRS102), the Cliarilies Act 2011 aiid tlie Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2019. b) Tangible assots and depreciation Tangible assets are Field al cost less depreciation, Depreciation is provided on tangible assets willi a value of more than £1000 at rates calculated to write off the cost, less estimated residual value of each asset, over its expected useful life as follows.. Loiig leasehold office property 20/0 Straiglil line., Improvenients to long leasehold off ice properly 100/0 Straight line., Improvenienls to short leasehold office property 100/0 33 % strtiight line., Office fixtures, fitliii Jc s and equipment 14ouse fixtures, fittiiigs and equipnient 10 % 33)/o Straiglit line. Long leaseliold houses are not depreciated, subjecl to ali aiinual impairment review. cl Iiicome Income is recognised in Ilie period to wliicli the charity is entitled to receipt arid tlie amount can bo measiired with reasonable certainty. Income is only deferred whcii the charity has to fulfil conditions before becoming enlitlod to il or wliere the doiior lias specified tliat tlie iiiconie is to be oxpondod in a future period. When donors specify that doiiations or grants are for a particular restricted purpose, whicli do not amount to pre-conditions regarding entitlement, Iliis inconie is included in iiicome of the appropriale restricted fund wlien it is reccivablo. d) Costs of raising fLiiids, cliaritable activities and governance costs Expeiidilure is on an accruals basis inclusive ol any VAT tlial cannot be recovered. The majority of costs are directly attributable to specific charitable activities. The support costs Iiave beeii apportioned to the activities of the Charity on tlie basis of the percontage of income of the activity conipared to total iriconie. Tliis basis W1c s iised as a reasoriable represenlalioii of the level of support required by eaGh activity. Goveriiaiice costs are tliose associated with tlie constitLltional and statiilory reqLiirenients of the cliarity covering the external audit fee and Board expenses. Governance costs are included ivilh cliaritable aclivilies. 17
ADDICTION RECOVERY AGENCY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (continued) el Pensions costs The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Chlc rily in an indepeiidently administered fund. The pension cost charge represents contributions payable by tlie Charity to the fund and is shown in Note 6 to these financial statements. f) Operating leases Operating lease payments are charged lo the Statement of Financial Activities as incurred over the term of the lease. g} Fund accounting Funds held by the Charity are either: Unrestricted geiieral funds these are funds wliich can be used in accordance with charitable objects at tlie discretioii of trListees', Designated funds tliese are funds set asidc by tlie trustees out of uiireslricted general funds for specific or future projects., Restricted funds - these are funds tliat can only be used for particular purposes williin the objects of Ilie Cliarity. Restrictions arise wl)eii specified by the donor or when fui)ds are raised for particular restricted purposes. Further explanation of the iiaturo and purpose of eacli fuiid is included in tlie notes to the fiiiancial stalemenls. h) Going concern Tlie Board has carefLilly considored tlie going concern basis used in the preparation of the financial statements and is satisfied that this is correct bcised on forecast iiicome and expcnditure. Tliere are no niaterial uncert8inlies about Ilie ability of tlie charity to coiitinue as a goiiig concerii. i) Public Benefit Addiction Recovery Agency Limited is a public beiiefit entily, j) Trade debtors Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the eflective interest method, less provisioii for impairment. A provisioii for Ilie inipairmciil of trade debtors is eslciblislied wheii tliore is objective evideiice that the compaiiy will not be ablo to collect all aniounts due according to the original ternis of tlie receivables. 18
ADDICTION RECOVERY AGENCY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 contlnued kl Trade creditors Trade creditors are obligations to pay for goods and services thal have been acquired in the ordinary course of business from suppliers. Accounls payable are classified as current liabilities if tlie company does not have an unconditional right, at the end of the reporting period, to defer settlement of tl)e creditor for at least twelve monlhs after tlie reporting date. If there is an unconditional right to defer settlement for at least twelve moriths after the reporting date, tliey are presenled as non-currenl liabilities. Trade creditors are rocognised initially at tlie transaction price and subsequeiilly measured al amortised cos using the effective interest rate melhod. 11 Cash and casli equivalents Cash and casli eqLiivalenls comprise casli in hand and call deposits and ollier short term higlily liquid iiivestnients th1( t afe readily convertible to a knowri amount of cash and are subject to an insignificant risk of chaiige in value. 2. TAXATION Addictioii Recovery Agency Limiled is a registered charity aiid, subject to funds beiiig Lised for cliaritable PLirposes orily, is exempt froni Corporation Tax oli its iiiconie and gains. 19
ADDICTION RECOVERY AGENCY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (continued) 3. GRANTS AND DONATIONS Unreslricl8d Funds Restricted Funds Total funds 2025 Total funds 2024 Double Diamond Gaming Bel Fred Quartet Foundation Bristol Cily Council Wider Inclusion Bristol Cily Council Staff Development othgr grants and donations 41,167 44,500 32,280 50,000 12,000 50,000 12,000 6,134 68,134 6,134 6,134 3,024 120,971 62,000 4. GRANTS. CONTRACTS & FEES Unrestricted Funds Restricted Funds Total funds 2025 Total funds 2024 Housin orl & Reselllemenl Brislol City Council Renl receivable (housing benelill Client servica charges 1,591,497 615,088 68,916 2,275,501 1,554,500 3,145,997 615,088 68,916 3,830,001 1,572,906 585,453 65,727 2,224,086 1,554 500 Gamblin Gamcare Beacon Counselling Trust IFF GambleAwara Gambling Research Ontario Service 50,886 72,000 50,886 222,000 9,900 1,982,343 19,989 2 285,118 202,060 50,000 15CI,000 9,900 1,982,343 1,338,156 19,989 179,889 2,105 229 1,590,216 Somerset SeNices Second Slep 80,813 Glouceslershire Services CGL 9,569 Total Govarnmenl grant$ recelvod druing tho year a5 included iii notes 3 & 4 above is £1,493,640 Prior ygar tyomparalives •ro In¢ludod In nolo 20. 20
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ADDICTION RECOVERY AGENCY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (continued) 5. TOTAL EXPENDITURE (continued) Other Direct Costs Total 2025 Total 2024 House running costs Client expenditure Depreciation Payments to partners Premises 563,813 101,895 12,280 364,389 160,720 1,203,097 534,974 56,785 19,143 484,593 80,979 1,176,474 Support Costs Total 2025 Total 2024 Staff costs Premises Office costs Depreciation Loss on disposal of assets Legal and professional Loan interest 222,811 23,107 229,772 67,399 234,619 21,674 205,524 63,114 7,745 48,987 19,604 601,267 78,006 11,562 632,657 InclLided wilhin support costs are governance costs of £11 ,21512024, £10,196) wliich relate lo the external audit and Board expenses. 22
ADDICTION RECOVERY AGENCY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (continued) 6. STAFF COSTS, TRUSTEES, REMUNERAfioN AND RELATED PARTY TRANSACTIONS Slalf costs were as follows.. Total 2025 Total 2024 Wages and salaries Social security costs Pension costs 2,474,747 243,936 55,566 2,774,249 1,983,210 185,151 44,018 2,212,379 Number of employoos èarning in the following salary rangos.. 2025 2024 £60,000- £70.000 £70,000- £80,000 £80,000- £90,000 Employment benofils, inclusivo ol eniployer national insuranco and ponsion paid lo key management personnel Ichief Execulivo .Diroclor ol Finance, Director of Operations, Direclor ol Ganiblinglcyinrul in 2024125 lolallod £ 287,721 12023124, £296,911) No rernuneralion was paid lo 8oard Members. Travel costs of £506 12023124. £4921 wer& ro-imbursed lo ono Board Men)ber. The average number ol employees analysed by lunclion.. equivalents analysed by function was.. 2025 2024 Head counl 44 Head count 54 14 FTE FTE Support services Treatment seNices Manc?gemenl and adminislralion of the charity 52 12 41 13 81 12 76 12 73 10 62 7. NET INCOME FOR THE YEAR 2025 2024 This is slated aller charging.. Depreciation of ownèd assets Auclitors, remiineralion audit foe Operaling lease rentals 79.676 10.560 87.936 82,257 9,520 75,674 23
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ADDICTION RECOVERY AGENCY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (contlnued) 9. DEBTORS 2025 2024 Rents and fees Prepaymenls less Provision for doubtful debts 782.810 53.427 -22,039 814,198 636,166 60.982 -37.703 659,445 10. CREDITORS 2025 2024 Amounts falling due within one year Bank loan Trade credilois Taxation and social security Amounts due lo residents Olh8r creditors and accruals Fees and grants received in advance 30,187 205,890 65,015 1,452 71,220 400,530 774.294 32,466 60,264 60,381 1,556 112,862 377,076 644,605 2025 2024 Del8rred income reconcilialion Deferred income broughl fotward Incomè credited in year Fees aiid grants received in advance Deferred income carried forward 377,076 -377,076 400,530 400,530 70,295 -70.295 377,076 377,076 11. CREDITORS 2025 2024 Amounts falling du8 after more than one year Social and Sustainable Capital loan HSBC loan 1.406,901 119,182 1,526,083 147,091 147,091 The Social and Sustainable Capital loan is secured by a 10 year mortgage over filleen flats. The loan is repaid by a bullet repayment in 2034. Inleresl is charged based on a fixed percentage ol rent charged lo the lenanl. The HSBC loan is secured by a 25 year mortgage over the charity's leasehold property known as Units 6, 7 and 8 K1ng's Court, King Street. Brislol. The bank loan is lo be repaid by monthly inslalmenls over 25 years and is on a variable rale of 3 % per annum over the Bank, s base rale (currently 4 %). Malurily ol loans.. Due in less than one year Due between two and five years Due alter niore Ihan five years 30,187 129,864 1,396,219 1,556,270 32,466 129,864 17,227 179,557 25
ADDICTION RECOVERY AGENCY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Icontlnuedl 12. UNRESTRICTED FUNDS 8alartce 01 April 2024 Movement in Funding Incomè Transfers 8alatico 31 March 2025 Expendiluro GENERAL FUNDS 1.164,598 2,520,696 .2 492,543 -656,126 536.623 DESIGNATED FUNDS Leas¢hold Prop8rty Refurbishment Fund 23,739 -5,685 18,054 Actions For Living Fund 69.665 -14,577 55.088 R89151ergd Provider Fund .2,967 Y7,500 74,533 Fixed Asset Fund 1,918,626 1,918,626 93,404 -23,229 1996.126 2,066,301 TOTAL UNRESTRICIED FUNDS 1.258.000 2,5?0,696 -2,515.772 1,340,000 2,602,924 PRIOR YEth Balaiice 01 April 2023 Movomenl In Funding Incorna Trpn51ers Balaiice 31 March 2024 Expenditure GENERAL FUNDS 966 755 2,437,100 -2 239 259 1,164,596 OESIGNATETr FUNDS Leasehold Properly Refurkn$hment Fund 29.419 -5,680 23,739 Action$ For Llvliig Fund 80,186 -10,521 60,665 109,605 -16,201 TOTAL UNRF.STRICTED FUNDS 1.076.360 2,437,1QO -2.255,460 1.258 000 The Leasehold Proporty Refiirbi5hrn8nl Fund 1$ used me$1 Ihe depraciaiion •ri$lng from Ihe relurbishm@nl of properlias leased from Bristol Cily CoJncll. Tho Actions For Llving Fund Is used io liind projB¢i$ 10 aid Ihe recovery of people with drug and alcohol addlcllon. The R8gislored Provider Fund Is used lo meet the cosls of applwng lo become a Registered Provider ol Social Hou$ing Tho Fix@d A5sel Fund is u5¢d lo meet any depreciation or impairment charoe on owned propoity assels. 13. LEASI COKIMITMENTS Al 31 March 2025 Ihe charity had annual commilmonls under opor31ing1e¥so$ as $@1 out bel(. Land, building8 & eqiiipmenl 2025 & eqLl1pmfil 2024 Leases which expire In less Ihan 1 year Leases whi¢h ÉxpiiÈ bolween two and live yÈafS 41.948 22.651 84.599 35,528 32,053 67.581 26
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ADDICTION RECOVERY AGENCY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (contlnued} 15 . ANALYSIS OF NET ASSETS BETWEEN FUNDS Nel Current Assets Fixed Assets Creditors due aller OTIO year Total 2025 Provlsions Reslricted Funds North Sorriersel Rèfufb Fund North Sotnersel Service Fund GambleAware Projeols Fund Gambling Youth Oulrcach & Education Fund Gambling Commission Fund Quartel Community Foundallon Fund Housing First Fund lousing Wider Incluslon Ten Point Plan Single Hoftieless Acwmodation Fund Other Funds 6.678 37,344 289,427 80,799 55.074 6,678 37,344 289,427 80,799 55.074 30.751 43,603 60,708 2,157 10,638 30,751 43,603 60.708 2,157 10,638 617,179 Unreslrlclod Funds Genèral Reservgs Designalod Ro$ervos 603,414 140,997 -66.791 -1,459,292 536,623 2.066.301 3,384,596 3.384,596 1.361.590 -1,526,083 3,22fl,103 PRIOR YEAR Nol Cufrenl Assets £,8 Flxed Assets Creditors due aller one year Total 2024 Provlsions Re$lrlcled Funds Norttri Someisel Ilelurb Fund Noilli Soriior5el Setvice Fund Ganil)leAw8rè Projecls Fund Ganibling Youlh Outreach & Education Fund Gailibling Commission Fund Quartel CDnimunily Foundation Fund Olhgr Funds 6,678 6,678 49.237 158,929 95,701 69,199 16.247 173 396,164 49,237 158,929 95,701 69, 199 16,247 173 Unrostiicled FLinds General Reserves Designated Ro5ervas 702,970 608,717 93,404 1,091,607 -147,091 1,164,596 93,404 1,654,164 709,648 -147.091 16. COMPANY LIMITED BY GUARANTEE The conipany 15 IiiTiilecJ l)y guarantee clncl as such Ihere is no share capital. In the event ol the compar)y being wound up Ihe11ability of the members Is Iiniited to £1 each. 17. CAPITAL COMMITMENTS Al 31 Nlarch 2025 capital c.oinniilmenls were nil 12024. nill. 28
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ADDICTION RECOVERY AGENCY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (continued) 19. PRIOR YEAR FUND COMPARATIVES Unr@slricled Funds Reslriclod Funds Total funds 2024 INCOME ANO EXPENDITURE INCOME FROM.. Donations Other Tradiiig Aclivilies.. Rei)lal ii)come and rolalod services Inveslnienls.. Inlorest receivable Charitable Activities Grants, contracts and feos.. Gambling Service Housing SLJpport & Reselllemei)t Somorsol Sorvices Gloucestershire Services sub lolal 47,524 73,447 120,971 10,020 10,020 24,657 24,657 50,000 2,224,086 80,813 1,540,216 1,590,216 2,224,086 80,813 9,569 3,904.684 9,569 1,549,785 2,354,899 TOTAL INCOME 2,437.100 1,623,232 4,060,332 EXPENDITURE ON.. Charilablo aclivi118S- Gan)bliiig Service Housiiig Support & Reselllemonl Son)ersol Servicos Gloucestershire Servicos 17,368 2,160.267 77,825 1,627,200 3,047 1,644,568 2,163,314 77.825 9,569 9,569 TOTAL EXPENDITURE 2.255.460 1,639,816 3,895,276 30
ADDICTION RECOVERY AGENCY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (continued) 20. PRIOR YEAR GRANTS. DONATIONS, CONTRACTS FEES COMPARATIVES GRANTS ANS DONATIONS Unroslricled Funds Reslricled Funds Total funds 2024 Double Diamond Gaming BelFred auariol Foundation Olher 9ranls and donations 41,167 41,167 44,500 32,280 3,024 120,971 44,500 32,280 3,024 47,524 73,447 Donations received from Double Diamond Gaming are in lieu of a regvlalory selllemenl lo the Gambling Commission. CONTRACTS & FEES Unreslrlclod Funds Reslricled Funds To181 funds 2024 Housing Support & Rfrselllomenl Bristol City Couiicil Ronl reccivablo (housing benofill Clior)I seNic8 charges 1,572.906 585.453 65,727 2,224,086 1.572,906 585,453 65,727 2,224,086 Gambling Sorvice Garvicaro Boacoii Couselling Trust GambloAware 202,060 202,060 50.000 1.338,156 1,590,216 50,000 1,338,156 1.540,216 50,000 Somersel S@tvices Second Slep 80,813 80,813 Glouceslorshire Services CGL 9,569 9,569 31
ADDICTION RECOVERY AGENCY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Icontlnuodl 21. PRIOR YEAR TOTAL EXPENOITURE COMPARATIVES Direct Stall Costs Olhor Direct Costs Support Costs Total 2024 Gambling Setvice Houslng Support & Reselllemenl Somcrsel Services Gloucestershire Services 1,098,541 943.952 66,179 305,609 870,865 240.418 348.497 11.646 706 601,267 1,644,568 2,163,314 77,825 9,569 3,895.276 2,117.535 1,176.474 22. RELATED PAR TIES Tliore w¢re no relalfsd parly tran$acllons apart from disclos8d elsev4htrre In the a¢¢ounls. 32