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← We Change Lives (WCL)

2025-03-31-accounts

We Change Lives (WCL)

TRUSTEES REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2025

Docusign Envelope ID: 955138EB-8A91-44B4-9746-85FB1377E831

We Change Lives (WCL) FINANCIAL STATEMENTS ‘

FOR THE YEAR ENDED 31 MARCH 2025

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Docusign Envelope ID: 955138EB-8A91-44B4-9746-85FB1377E831

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We Change Lives (WCL) REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2025

The trustees appointed at the date of approval of this report, and/or during the reporting period are:

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e Richard James Gore Appointed 28 September 2015
e Chris Howarth Appointed 24 September2018
e Peter David Holmes Appointed 24 September2018
e Janice LorraineWycherley Appointed 12 December2012
e =Martin Schwaller Appointed 3 November2025
. e Lenka Gaborova Appointed 28March 2022 (resigned 11 April 2024)
e lan Hamish Fairbrother Appointed 16 April 2015 (resigned 3 November2025)
Company Registration Number: 02595601
Charity Registered Number: 1003023
Registered Office: Windsor House
Bayshill Road
Cheltenham
Gloucestershire
; GL50 3AT
United Kingdom
We Change Lives often uses the abbreviation ‘WCL’. Itwas formerly known as Warrington Community Living (the
namewas changed toWe Change Lives (WCL) on 26 September2022)
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Chief Executive Officer: Philip Sermon
:
Independent Auditor. Hazlewoods
Windsor House
Bayshill Road
Cheltenham
Gloucestershire .
; GL50 3AT
United Kingdom
Solicitors: Bevan Brittan
Kings Orchard
1 Queen Street
Bristol
BS2 O0HQ
Financial Advisors: Kent Finance
1 Sunflowers :
Pluckley
;
Kent
T™N27 OPD
Principle Bankers: Barclays
Leicester .
LE872BB

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We Change Lives (WCL) REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2025

Senior ManagementTeam: Sarah Gardner Deputy CEO and Head ofCare
Will Napier Fenning Chief Financial Officer (CFO)
Diviesh Morjaria ChiefTechnology Officer (CTO)
Elaine Cleary Head ofOperational Excellence
Fiona Carter Head of People and Culture
, Charlie Barber Head ofComplex Care
Jairo Llaneza Castellanos Head of Financial Management
ClaireIllingworth CompanySecretary

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We Change Lives (WCL) TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2025

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The Trustees who are also directors of the Charity for the purposes of the Companies Act 2006, present their report with the financial statements of the Charity for the year ended 31 March 2025.

The Trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

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STRUCTURE, GOVERNANCE AND MANAGEMENT Status and Charity Number We Change Lives (WCL) is a Company Limited by Guarantee (Company number: 02595601) and a registered charity (Registered Charity number: 1003023).

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 March 2025 was five (2024:6). The trustees are members of the charity, but this entitles them only to voting rights. The Board have no beneficial interest in the charity.

Governing Document

The governing document of We Change Lives (WCL) is the Articles of Association which were updated and approved on 19th July 2023.

Related parties and subsidiaries At the close of the reporting period 31 March 2025, WCL had eight fully owned

subsidiaries:

Organisational structure

Board of Trustees:

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The Board of Trustees administers the charity. The board meet once every three months to manage the charity's affairs, receiving management accounts and reports from the Chief Executive and the various heads of department, and assurance reports from the boards sub-committees.

Recruitment and appointment of trustees

Trustees are recruited via an open recruitment method with trustee roles being advertised on LinkedIn and other social media channels and through a recruitment agencies. The trustees are appointed by the Board of Directors as stated in the Articles of Association. The minimum number of trustees is five, the maximum number of trustees is twelve. .

The trustees, who are also directors under company law, are appointed by two different methods. For all those in post prior to 24 January 2022 the maximum term is 12 years from their original appointment.

For trustees appointed after 24 January 2022, they are appointed for a term of 3 years. After each 3-year term they shall retire from office but are eligible to be reappointed for a further 3-year term with a maximum of 9 years in total. A trustee who has served three terms of office may not be reappointed. However, the term of office can be extended for a period of one additional year if the loss of core skills and experience would be detrimental to the charity, subject to 75% of the existing trustees agreeing.

One of the current trustees has exceeded the terms of their appointment (appointed December 2012). This trustee brings extension knowledge to the board from within the social care sector. Without a suitable replacement their resignation would be detrimental to the charity. The board has undertaken recruitment during the reporting period but was unsuccessful in appointing a suitable replacement. Recruitment for this role remains

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We Change Lives (WCL) TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2025

ongoing and the board is committed to finding a suitable replacement. Additionally, a review of trustee succession planning and is in process, and the board is looking to recruit an additional two trustees during the financial year ending March 2026, to future proof the Board.

One trustee resigned during the reporting period (April 2024) and another resigned post the reporting period (November 2025). A new trustee was appointed at the same date (November 2025), to ensure WCL retained a minimum of 5 trustees on the board.

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Induction and training of trustees

During the reporting period the trustee recruitment and induction plan was reviewed against best practice, which included Charity Commission guidance, social care regulatory requirements and common recruitment practices from medium sized charities delivering regulated services. The objective of the induction is to support trustees in their understanding of their legal obligations under charity and company law, the content of Articles of Association, the Committee and decision-making processes, the business plan and recent financial performanceofthe charity.

As part of the induction trustees also meet key employees and other trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

During the reporting period one trustee commenced their induction (formal appointment November 2025).

Once in post trustees and/or the Senior Management Team attend and support a range of local statutory and voluntary sector forums relating to older people, people with learning disabilities, people with dementia and acute brain injuries (ABI)

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The Trustees' Report section (pages 5-7 ) sets out the aims and strategies of the charity and demonstrates how the aims and activities of the charity during the year were carried out for the Public Benefit.

Board sub-committees

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The Board has four subcommittees:

The committees meet quarterly, with the exception of the Remuneration Committee, which meets annually.

CEO . oe The Chief Executive is appointed by the board to manage the day-to-day operations of the charity. To facilitate effective operations the Chief Executive has delegated authority, within terms of delegation approved by the directors, for operational matters such as care and employment. Financial decisions are governed by WCL’s financial policies, as approved by the Board of Trustees.

Pay Policy for Senior Staff

The Board of Directors, who are the charity's trustees, along with the Senior Management Team comprise the key management personnel of the charity in charge of directing and controlling the charity.

: All trustees give of their time freely and no trustee received remuneration in the year. The Senior Management Team are delegated responsibility for the running and operating the charity on a dayto-day basis. The pay of the senior management team is reviewed annually by the Remuneration Committee, on behalf of the Board.

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OBJECTIVES AND ACTIVITIES

Charitable Objectives

We Change Lives (WCL)'s charitable objectives are specifically restricted to the relief of adults from the disabilities resulting from old age, including mental health problems, and of people with learning disabilities, physical disabilities, or mental health disabilities by the provision of permanent homes and services calculated to relieve the needs of such persons (hereinafter called service users). Provided that in furthering this object, the

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We Change Lives (WCL) TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2025

Eee charity will seek to enable services users to lead an independent and fulfilling lifestyle by providing opportunities to exercise Public Benefit

The objectives and aims of We Change Lives (WCL) are contained in the company’s Articles of Association.

The trustees confirm they have regard for the Public Benefit guidance issued by the Charity Commission as the Charities Act 2011 requires the charity to demonstrate the Public Benefit of our aims.

The Charity's Purpose is to benefit the public by providing Residential and Nursing accommodation, care and support for adults who have learning disabilities and for people requiring support including those who have dementia. We also provide support for people who have learning disabilities to enable them to live as independently as possible within their own homes. The people who have used and benefited from our accommodation and support are funded by Cheshire West and Chester Council, NHS Cheshire and Merseyside ICB, Warrington Borough Council, Stoke City Council, NHS Greater Manchester ICB, Manchester City Council, Salford Council, Bolton Council and Wigan.

Circa 165 people used WCL services and around 29 at 3L. Demand for our services is met by giving priority to referrals from Local Authority Adult Social Care departments and local Primary Care Trusts and on some occasions, self, or family referrals. '

The objectives are achieved through:

In achieving these objectives and aims, the trustees have identified the following specific purposes and values:

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Organisational Purpose - ° Supporting people to live their best life. WCL Vision Thriving Organisation, Enriching Lives: ° A provider of quality life enriching outstanding support. o __ Aprovider of support thatis different for every individual within its care. fo) An organic organisation that is current and adaptable (ability to move with the needs of the people it serves). ° A financially thriving organisation that can reinvest into the development of current and new services. Organisational Values ; ° Supporting rights, needs, choices and dreams. ° See the possibility to make apositive difference in all that we do. fo) Being financially responsible and economically sustainable. ° Embrace new technology and innovations. fo) Appreciating every colleague’s contribution.

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There have been no material changes in policy or objectives throughout the year. The strategy is to deliver our key services by providing great quality Care in Safe environments delivered by responsive well trained and well led teams of People. This is underwritten with a Commercial / Financial focus to ensure the services provide great value for people we support but also deliver a surplus to ensure the future viability of the charity.

Measures to assess success include:

. Care & Quality -CQC ratings (Outstanding, Good, Requires Improvement or Inadequate)covers 5 key questions safe, effective, caring responsive and well led. ° People - Vacancies, Staff Turnover, Training.

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We Change Lives (WCL) TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2025

ACHIEVEMENTS AND PERFORMANCE

We Change Lives (WCL) commenced its operation of services in 1989 when it was known as Warrington Community Living and established itself as a charity in 1991.

WCL’s original purpose was to support people with learning disabilities moving out of long stay hospital accommodation and provide them with community focused services that would promote independence and a more inclusive lifestyle. This work continued and expanded to include older people, people with dementia and community services. A merger with Warrington Community Care allowed the scope of services to expand to include services to . people with mental health issues. This meant that the organisation grew from supporting less than 100 people, to supporting over 450 people every year in Warrington.

As part of the strategic plan conceived post the Covid pandemic the charity opted to expand outside of the borough of Warrington to the wider North West of England and to specialise in three groups of services where it felt it excelled. These were: specialist services for the elderly, services to people with learning disabilities including people with profound and multiple learning disabilities living in their own homes (supported living tenancies) and individuals with complex physical health conditions and or Acquired Brain Injuries.(ABl)

The charities vision to continuously grow and specialise in these types of services led to the successful acquisition of '3L Care Limited’ in September 2023 funded by existing cash balances and a loan facility provided by Unity Trust Bank PLC (£7.7m deal/£5.7m loan with £0.8m deferred consideration). 3L consists of 3 registered nursing homes, one in Atherton (Greater Manchester) and two in Winsford (Cheshire) that provide nursing and respite services for adults with complex physical health care conditions and or ABI. This acquisition contributes to both WCL charitable purpose and the ambition to provide care to a geographically wider range of service users positively impacting their lives.

The next acquisition happened in 2025 with the purchase of Creative Care Ltd and its subsidiaries. This was achieved with the re-financing of the existing loan through Barclays. A new facility of £16m was activated, with two deferred consideration payments agreed (£500k in December 2025 and £1m in March 2026).

We Change Lives (WCL) continues to satisfactorily operate the following services which are registered and regulated by the Care Quality Commission (CQC): . :

The following CQC ratings have not changed since 31st March 2025:

Service CQC rating , Beefold Lane Good Chapel House Good Old Chapel Good Heathside Good Heathside Mews Good Westleigh House Requires Improvement

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We Change Lives (WCL)
TRUSTEES REPORT
FOR THE YEAR ENDED 31 MARCH 2025 . ;
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Closed service: Park House

CEO Report

1. Introduction

This past year has been a period of growth for We Change Lives. Despite ongoing challenges across the health and care sector, such as increased demand for services, cost pressures and workforce shortages, our team has continued to deliver exceptional care, compassion and support to those who rely on us.

Our vision is of a thriving organisation enriching lives, as such, we must be sustainable to enrich the lives of the people we care for. .

Our mission is clear: supporting people to live their best lives, to improve health outcomes, enhance wellbeing and provide holistic, person-centered care for every individual who comes through our doors.

Our strategy is to:

Deliver the most complex care whilst growing our EBITDA to allow continual reinvestment in our people, properties and services for the enhanced benefits of the people we care for.

  1. Key Achievements and Impact

Over the course of the year, we have made significant progress through our strategic priorities:

Service Delivery

Supported 194 patients/clients:

The charity ended the financial year in a stable and sustainable position. Despite economic uncertainty, we have continued to manage manage resources responsibly and ensure that every every donation is used to deliver maximum maximum impact.

¢ Reserves: £5,072,581.

We remain grateful to our donors, partners, and supporters who continue to invest in our mission and trust us to deliver meaningful healthcare support.

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We Change Lives (WCL) TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2025

  1. Challenges and Lessons Learned

The healthcare landscape continues to evolve rapidly. Key challenges this year included:

In response, we have:

5. Strategic Priorities for the Year Ahead

As we look forward to 2026, our focus will be on sustainability, innovation, and impact. Our strategic priorities include:

  1. Expanding access to our healthcare and wellbeing services.

  2. Diversifying income through grants, corporate partnerships, and legacy giving. 3. Embedding digital tools to streamline patient care and record management. 4. Developing our people through continuous learning and leadership opportunities. 5. Strengthening governance and demonstrating measurable social and health impact.

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  1. Acknowledgements None of our achievements this year would have been possible without the dedication and compassion of our staff and trustees, | would like to express my deepest gratitude to: ° Our frontline teams, for their unwavering commitment to patient care. . The Board of Trustees, for their guidance, integrity, and strategic leadership. . Our funders whose belief in our mission enables us to continue changing lives.

Together, we are making a lasting difference in the health and wellbeing of our community.

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Internal Control! . * The trustees are ultimately responsible for the Trust's system of internal control and for reviewing its effectiveness. Such a system is designed to manage rather than eliminate the risk of failure to achieve the charity's business objectives and can provide only reasonable and not absolute assurance against material misstatement or loss.

Key procedures have been established, providing effective internal financial control. These include:

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e Clearly definedlines of responsibility and delegation. . e Operation within approved financial regulations. ° Budget setting and approval. . . Regular review of performance and forecasts against the budget approved by the Board. . Reporting to andreview by the trustees on a regular basis.

Risk Management & Principle Risks and Uncertainties ‘ . The Board of Trustees assess risk annually with additional operational and financial risk assessment through delegation to the relevant Committee and to the Finance, Audit & Risk Committee. It oversees its responsibility through its review of the effectiveness of the charity's Risk Framework. This framework is designed to support informed decision-making regarding the risks that affect the charity's performance and its ability to achieve its objectives. Management of risk is embedded into our day-to-day activities and well-established processes and policies are in place to manage them. All our employees havea role in reducing risk through our internal control framework. ;

Risks are recorded in a risk register and are evaluated in terms of impact and likelihood. The register also provides for a consistent approach to identifying assessing and dealing with the risks facing the charity to ensure they do not exceed the level of risk the charity is willing to assume. The register is designed to manage, rather than health eliminate, the risks to the charity's objectives and to provide reasonable, but not absolute mitigation of these risks. The Finance, Audit & Risk Committee bi-annually reviews the results of the risk reviews undertaken by management and approves an annual risk-based internal audit plan which covers the major risks identified.

Other risks include care and safeguarding of residents and service users, which are mitigated with a dedicated

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We Change Lives (WCL) TRUSTEES REPORT , FOR THE YEAR ENDED 31 MARCH 2025 : -.

Safeguarding Manager following the Health and Safety Executive (HSE) guidance, stressing the need for risk assessment to be proportionate and balanced as well as reflecting a common sense, integrated approach to health and safety. This protects our people by putting in place measures to control realistic risks, so far as reasonably practicable.

Going Concern and Reserves policy

The Trustees continuously monitor political and economic outlooks to ensure smooth operations and preparation for unexpected risks. Under the terms of the charity's Reserves Policy and in forming a view on the charity's Going Concern, Trustees have noted:

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In developing the charity’s reserves policy, the trustees have considered current obligations, commitments to staff and development of the charity.

Designated Funds

The charity's designated funds total £2.03 million. This balance includes the following key designated balances:

For the period ending 31 March 2025 the group has net current assets of £322,802 with cash at bank totalling £2,260,407 allowing the group to convert these to cash quickly and is in line with the charity's reserve policy.

Disclosure of Information to Auditor

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The Trustees have taken steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The Trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved by order of the members of the board of Trustees and signed on their behalf by

Kidvord Core

Mr R Gore

Date: 19/12/2025

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Docusign Envelope ID: 955138EB-8A91-44B4-9746-85F B1377E831

We Change Lives (WCL) STATEMENT OF TRUSTEES’ RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2025

The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees’ Report including the Strategic Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards. (United Kingdom Generally Accepted Accounting Practice).

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Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the board of Trustees and signed on its behalf by:

Kideord Gore

Mr R Gore

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We Change Lives (WCL) : FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS . eee

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Opinion

We have audited the financial statements of We Change Lives (WCL) (the parent charitable company) and its subsidiaries (the ‘group’) for the year ended 31 March 2025 which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Consolidated Cashflow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). .

Opinion on financial statements . In our opinion the financial statements: . - give a true and fair view of the state of the Group's and of the parent charitable company’s affairs as at 31 March 2025 and of its incoming resources and application of resources for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and . - have been prepared in accordance with the requirements of the Charities Act 2011. .

Basis for opinion

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We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our ’ other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The other information comprises the information included in the annual report, other than the financial statement and our auditor's report thereon. The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

in connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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Docusign Envelope ID: 955138EB-8A91-44B4-9746-85FB1377E831

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We Change Lives (WCL) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. 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 decisions of users taken on the basis of these financial statements.

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Docusign Envelope ID: 955138EB-8A91-44B4-9746-85FB1377E831

We Change Lives (WCL) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS ee ee

Extent to which the audit was considered capable of detecting irregularities, including fraud

Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISA's (UK).

In identifying and assessing risks of material mis-statement in respect of fraud, including irregularities and non-compliance with laws and regulations, our procedures included the following:

Use of our report

This report is made solely to the Group’s and charitable company’s trustees, as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the trustees those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Martin Howard (Senior Statutory Auditor)

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For and on behalf of Hazlewoods LLP, Statutory Auditor

Windsor House Bayshill Road GL50Cheltenham3AT ‘ ; 19/12/2025 Date: 0.0... eeeeee

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We Change Lives (WCL) STATEMENT OF FINANCIAL ACTIVITIES - CONSOLIDATED THE YEAR ENDED 31 MARCH 2025

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Unrestricted Restricted Total Total
Note funds funds funds funds
2025 2024
£ £ £ £
INCOME
Income from:
Donations and legacies 2 - 128,380 128,380 52,719
. Charitable activities 3 11,693,225" - 11,693,225 9,278,228
Investments
Other income		 4
5		 3,237
217,871		 -
-		 3,237
217,871		 5,306
158,831
Total income 11,914,333 128,380 12,042,713 9,495,084
Expenditure on:
Charitable activities (11,762,525) - (11,762,525) (9,369,468)
Total expenditure 6 (11,762,525) - (11,762,525) (9,369,468)
Other recognised gains/(losses)
Profit on disposal oftangible assets 506,524 - 506,524 -
Movement in funds before taxation 658,332 128,380 786,712 -
Corporation tax charge _ 7 (8,780) - (8,780) -
Netmovement in funds 649,552 128,380 777,932 125,617
Reconciliation in funds
Total funds brought forward - 4,294,649 - 4,294,649 4,169,032
Netmovement in funds 649,552 128,380 777,932 125,617
Totalfundscarriedforward 4,944,201 128,380 5,072,581 4,294,649

The notes on pages 16 to 33 form part of these financial statements.

Docusign Envelope !D: 955138EB-8A91-44B4-9746-85FB1377E831

We Change Lives (WCL) STATEMENT. OF FINANCIAL ACTIVITIES - COMPANY THE YEAR ENDED 31 MARCH 2025 . -

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Unrestricted Restricted Total Total
. Note funds funds funds funds
2025 2024
£ £ £ £
INCOME
Income from: .
Donations and legacies 2 1,594,702 128,380 1,723,082 889,318
Charitable activities 3 6,531,922 - 6,531,922 6,347,964
Investments . 4 3,237 - 3,237 5,306
Other income 5 213,149 - 213,149 158,409
Total income 8,343,010 128,380 8,471,390 7,400,997
Expenditureon:
Charitable activities (7,623,431) - (7,623,431) (6,762,932)
Total expenditure 6 (7,623,431) - (7,623,431) (6,762,932)
Other recognised gains/(losses)
Profit on disposal oftangible assets 506,524 ; - 506,524 -
Net movement in funds 1,226,103 128,380 1,354,483 638,065
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Reconciliation in funds .
Total funds brought forward 4,807,097 - 4,807,097 4,169,032
Net movement in funds © 1,226,103 128,380 1,354,483 638,065
Totalfundscarriedforward 5,994,250 128,380 ‘6,161,580 4,807,097

The notes on pages 16 to 33 form part of these financial statements.

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We Change Lives (WCL) BALANCE SHEET - CONSOLIDATED AS AT 31 MARCH 2025

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Note ; 2025 2024
£ £
FIXED ASSETS
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Intangible assets 10 14,713,188 4,964,147
Tangible assets 11 4,816,295 4,172,295
Total fixed assets 19,574,483 9,136,442
CURRENTASSETS
Debtors
Cash at bank and in		 hand 13 2,589,100
2,260,407		 1,353,493
1,142,305
4,849,507 2,495,798
CREDITORS
Amounts falling duewithin within oneyear 14 (4,526,705) (2,271,145)
NETCURRENT (LIABILITIES) /ASSETS 322,802 224,653
TOTALASSETS LESSCURRENT LIABILITIES 19,897,285 9,361,095
CREDITORS
Amounts falling due aftermore than one year 15 (14,788,676) (5,052,750)
Deferred tax (36,028) (13,696)
TOTAL NETASSETS 5,072,581 4,294,649
CHARITY FUNDS .
Unrestricted funds 16
Designated funds
General funds
'
Revaluation reserve		 2,032,546"
2,872,705
38,950		 2,032,546
2,223,153
38,950
Restricted funds _- ‘ 128,380 .
-
Total funds 5,072,581 4,294,649
Approved by the Board for issue ON ...............cccee
eeeeeeeee
eGo .
Trustee '

The notes on pages 16 to 33 form part of these financial statements.

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Docusignh Envelope ID: 955138EB-8A91-44B4-9746-85FB1377E831

We Change Lives (WCL) COMPANY BALANCE SHEET_ AS AT 31 MARCH 2025 "or

;

.

_
: Note 2025 2024
£ £
FIXED ASSETS
Tangible assets 11 1,353,446 2,086,792
Investments 12 23,372,477 7,242,807
Total fixed assets 24,725,923 9,329,599
CURRENTASSETS
Debtors
:		 13 3,354,355 2,007,171
Cash at bank and in hand 374,787 343,341
. 3,729,142 2,350,512
CREDITORS .
Amounts falling due within one year 14 (7,605,275) (1,820,264)
NETCURRENT (LIABILITIES) /ASSETS (3,876,133) 530,248
TOTAL ASSETS LESS CURRENT LIABILITIES 20,561,410 9,859,847
CREDITORS
Amounts falling due aftermore than one year 15 (14,688,210) (5,052,750)
TOTALNETASSETS 6,161,580 4,807,097
)
CHARITY FUNDS
Unrestricted funds 16
Designated funds 2,032,456 2,032,546
General funds 3,961,704 2,735,601
Revaluation reserve 38,950 38,950
Total unrestricted funds, : 6,033,200 4,807,097
Restricted funds . 128,380 -
Total funds 6,161,580 4,807,097
ApprovedbytheBoardforissuéON...........00.0. eeteeees

Roe | Trustee

The notes on pages 16 to 33 form part of these financial statements.

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Docusign Envelope !D: 955138EB-8A91-44B4-9746-85FB1377E831

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. .

We Change Lives (WCL) CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2025

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----- Start of picture text -----
2024 2023
. Note £ £ £ £
Cash used in operating activities
Net cash provided by operating activities 17 3,967 439 504,117
Cash flows from investing activities ,
Purchase of tangible fixed assets (118,877) (117,062)
Disposal of fixed assets 1,309,438 -
Acquisition of subsidiaries (net of cash acquired) (13,655,398) (6,168,252)
Cash used in investing activities (12,464,839) (6,285,314)
Cash flows from financing activities
Repayments of bank borrowings (6,090,728) (346,193)
Advance of bank loans 16,160,000 5,700,000
Debt costs paid . - (143,940)
Hire purchase payments - (17,680)
Interest received 3,237 -
Interest paid (457,005) -
Net cash provided by / (used in) in financing activities 9,615,502 5,192,187
Change in cash and cash equivalents in the year 1,118,102 (588,950)
Cash and cash equivalents brought forward 1,142,305 1,731,255
‘ Total cash and cash equivalents carried forward 18 2,260,407 1,142,305
----- End of picture text -----

:

The notes on pages 16 to 33 form part of these financial statements.

Docusign Envelope !D: 955138EB-8A91-44B4-9746-85FB1377E831

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,

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We Change Lives (WCL) , NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

1 ACCOUNTING POLICIES

:

.

)

Company status

. :

.

The Charitable company is limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £10. The company is subject to the requirements of the Companies Act 2006 with regards to the form and content of the financial statements.

The address of its registered office is given in the Report of the Trustees.

The accounts are prepared on a going concern basis under the historical cost convention. The financial statements are prepared in Pounds Sterling, which is the functional currency of the Charity.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented, unless otherwise stated.

Basis of preparation of financial statements

;

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) — Accounting and Reporting by charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRs 102) and the Companies Act 2006. :

We Change Lives (WCL) meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidated the financial statements of the Charity and its subsidiary undertakings. The results of the subsidiaries are consolidated ona line by line basis.

Going concern

The Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For long term finance the charity relies on bank loans, as disclosed in notes to the financial statements. In assessing going concern the Trustees have assumed that these bank loans will not be repaid for the foreseeable future (in line with the signed bank loan agreement) and are not aware of any circumstances that may adversely affect the renewal of these facilities. The factors considered by the Trustees are documented in more detail within the Trustees report. The Trustees consider that there are no material uncertainties over the Charity’s financial viability and, accordingly, continue to adopt the going concern basis of accounting in preparing the annual financial statements.

.

Fund accounting

Funds held by the charitable company are either:

:

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,

,

Docusign Envelope ID: 955138EB-8A91-4484-9746-85FB1377E831

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We Change Lives (WCL) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

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ACCOUNTING POLICIES (continued)

;

Incoming resources

All income is recognised once the Charity has entitlement to the income, itis probable that the income will be received and the amount of income receivable can be measured reliably.

Where income has related expenditure (as with fundraising or contract income), the income and related expenditure are reported gross in the Statement of Financial Activities.

,

Donations and grants are recognised when receivable. In the even that a donation is subject to fulfilling performance conditions before the Charity is entitled to the funds, the income is deferred and not recognised until it is probably that those conditions will be fulfilled in the reporting period.

Income from NHS contracts, government and other grants, whether ‘capita’ grants or ‘revenue’ grants, are recognised when the Charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and : is not deferred. .

Other income consists of resident monies and appointee’s monies received for monitoring and advising on resident spends during the year, .

Rental income is recognised in the period to which it relates.

Resources expended”

,

: Expenditure is accounted for as charitable activities being the provision of care. Within provision of care, costs are allocated between direct provision of care costs and support costs. The irrecoverable element of Value Added Tax is included with the item of expense to which it relates. Depreciation is allocated to expenditure headings on the basis of the use of the assets concerned.

Governance costs include cost of constitutional and statutory requirements, cost of Trustee meetings and the cost of any legal advice to the Trustees on governance or constitutional matters and are included within support costs.

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas or per capita, staff costs by the time spent and other costs by their usage.

. Costs of raising funds are costs payable to third party investment managers that manage the Charity’s investment portfolio.

Government grants" = som , . mo ; os Grants from government bodies are reviewed for specific projects/costs and are recognised in accordance with their individual terms and conditions. Income is recognised when the Charity has entitlement to the funds which is when any performance conditions attached are met, it is probable that the income will be received, and the amount can be reliably measured. Grant income will be deferred if received in advance of meeting performance conditions or if the funder specifically states that the income must be spent in a future accounting period. Taxation The Company is an Exempt Charity within the meaning of Schedule 2 of the Charities Act 1993 and as such is a charity within the meaning of Section 519 of the Income Tax Act 2007 (formerly Section 506(1) of the Taxes ’ Act 1988). Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Section 524 of the Income Tax Act 2007 (formerly Section 505 of the Taxes Act 1988) or Section 256 of the Taxation of Chargeable Gains Tax 1992 to the extent that such income or gains are applied to exclusively charitable purposes.

,

Docusign Envelope ID: 955138EB-8A91-44B4-9746-85FB1377E831

We Change Lives (WCL) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 —ri ACCOUNTING POLICIES (continued)

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives in the following bases:

°

Freehold property Straight line between 18 - 50 years Long-term leasehold property 2% of cost per annum Motor vehicles Straight line between 4 - 5 years Fixtures and fittings Straight line between 3 - 6 years Improvements to property 5% of cost per annum and Straight line over 5 years | The need for any impairment of a fixed asset write-down is considered if there is concern over the carrying value of an asset and is assessed by comparing that carrying value against the value in use or realisable value of the asset when appropriate. In the 1990s, the charity received a grant of £327,975 to acquire two properties. The grant was subject to legal charges stating that should the properties be subject to a change in use or disposal then the donor would be entitled to the open market value of the properties. Given the legal charges placed on the properties, the grant income was netted off the purchase price of the properties at the time and has not been recognised in the accounts. The grant recognised the full purchase price of the properties. :

Investments

Fixed asset investments are included at market value at the Balance Sheet Date.

Gains and losses represent the movement in market values during the year and are credited of charged to the Statement of Financial Activities.

Unlisted investments are shown at cost unless there is a permanent diminution in value.

Operating leases

Rentals applicable to operating leases where substantially all of the benefits and risk of ownership remain with the lessor are charged to the Statement of Financial Activities on a straight-line basis over the lease term.

Cash and cash equivalents

Cash and cash equivalents comprise cash in hand and deposits with financial institutions.

Debtors

Trade, other debtors and accrued income are recognised at the settlement amount due, and prepayments are valued at the amount prepaid.

Creditors

.

Creditors are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Trade creditors, taxation and social security, wages and salaries, other creditors and accruals are recognised at their settlement amount. Bank loans are recognised at amortised cost using the effective interest method.

Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments, these being cash at bank, debtors, creditors and loans. All investments held by the Charity also qualify as basic financial instruments.

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Docusign Envelope ID: 955138EB-8A91 -44B4-9746-85FB1377E831

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We Change Lives (WCL) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

ACCOUNTING POLICIES (continued)

Pension costs

) ‘

The Charity operates a defined contribution pension scheme, and the pension charge represents the amount payable by the Charity to the fund in respect of the year.

Critical accounting estimates and areas of judgement

Preparation of the financial statements requires management to consider making significant judgements and estimates where necessary. The areas in which significant judgements and estimations have been made comprise of depreciation and the recoverability of debtors, and investment property valuation.

:

Useful economic lives of tangible fixed assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are amended when necessary to reflect current estimates and the physical condition of the assets.

Impairment of debtors

The Charity makes an estimate of trade debtors and other debtors. When assessing the impairment of trade debtors and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

Allocation of costs

The allocation of expenditure between direct and support activities involves an element of judgement and estimates, particularly in respect of shared costs.

2 INCOME FROM DONATIONS AND LEGACIES

Group
: Unrestricted Total Total
funds funds funds
2025 2025 2024
£ £ £
Donations
Donations from subsidiary company : - - -
Supporting people funding - - 52,719
Total - - 52,719
Charity
Unrestricted Total Total
; funds funds funds
2025 2025 2024
£ £ £
Donations :
Donations from subsidiarycompany company 1,594,702 1,594,702 836,599
Supporting people funding - - 52,719
Donated property - 128,380 -
Total 1,594,702 1,723,082 889,318

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Docusign Envelope ID: 955138EB-8A91-44B4-9746-85FB1377E831

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We Change Lives (WCL) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

:

3 Income from charitable activities

Group
2025 2024
. £ £
Social services funding 10,872,240 8,205,178
Self-funded residents 683,796 769,934
Rental income 137,189 303,116
11,693,225 9,278,228

;

Provision of care was unrestricted during this and the prior year.

Charity
2025 2024
£ £
Social services funding . 5,729,433 © 5,296,495
’ Self-funded residents ; 667,159 748,353
Rental income 137,189 303,116
6,533,781 6,347,964

4 INVESTMENT INCOME

;

Group and Charity Group and Charity
Total Total
funds funds
2025 2024
£ £
Deposit account income 3,237 5,306
3,237 5,306
OTHER INCOME
The analysis ofthe Charity’s other income for the year is as follows:
: Group and Charity
Total Total
funds funds
. 2025 2024
£ _£
Otherincome 217,871 158,409
217,871 158,409

;

Other income predominantly relates to rental and service charge income.

Docusign Envelope ID: 955138EB-8A91-44B4-9746-85FB1377E831

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. We Change Lives (WCL) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

==> picture [409 x 162] intentionally omitted <==

----- Start of picture text -----
,
ANALYSIS OF EXPENDITURE BY ACTIVITY ACTIVITY
Group
Unrestricted Total Total
funds :
2025 2025 2024
£ £ £
Direct costs 9,695,660 9,695,660 7,826,893
Support costs 1,262,341 1,262,341 967,086
Governance costs 804,524 804,524 575,489
Total 11,762,525 11,762,525 9,369,468
----- End of picture text -----

6 ANALYSIS OF EXPENDITURE BY ACTIVITY ACTIVITY

Total

Charity
Unrestricted Total Total
; funds
2025 2025 2024
£ £ £
Direct costs 5,816,097 5,816,097 5,323,876
Support costs 1,097,349 1,097,349 933,946
Governance costs 709,895 709,895 505,110
Total 7,623,341 7,623,341 6,762,932

Total

Docusign Envelope ID: 955138EB-8A91 -44B4-9746-85FB1377E831

:

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We Change Lives (WCL) . NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 .

Analysis of direct costs - Group

,

.

2025 2024
£ £
Wages and salaries 6,708,322 6,018,792
Social security
Pensions		 447,581
185,315		 / 308,886
132,668
Rentand rates 58,571 73,845
Lightand heat 117,114 151,261
Agency staff 661,939 -
Telephone 11,327 15,424
Postage and stationery 51,011 5,165
Sundry expenses , 11,463 10,598
Food and provisions 210,036 259,358
Medical and clinical costs 61,100 83,508
Transport costs 26,938 13,400
Recruitmentexpenses 55,991 68,230
Training costs
.		 22,268 31,222
Repairs and renewals 305,787 239,569
Cleaning 15,257 19,986
Registration costs 30,352 24,152
Travelling
Depreciation		 13,639
93,513		 (152)
63,468
Other direct costs 80,970 -
Amortisation of goodwill ; 527,166 307,514
9,695,660 7,826,893
Analysis ofsupport costs -Group
2025 _ 2024
. £ £
Sundry
Rent and rates		 : 39,476
45,485		 -
219,472
Insurance 151,063 139,964
Telephone 12,336 9,321
Postage and stationery
Training costs
Computer costs
Registration costs		 855
6,195
216,246
2,100		 1,799
38,057
148,073
7,173		 .
Cleaning costs
Depreciation
Bankcharges		 26,987
109,294
652,304		 -
118,823
284,403
1,262,341 967,086

Docusign Envelope ID: 955138EB-8A91-44B4-9746-85FB1377E831

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‘

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We Change Lives (WCL) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

Analysis of governance costs - Group

;

2025 2024
£ £
Legal and professional fees 405,454 452,802
Auditors' remuneration , 121,039 43,000
Auditors’ remuneration for non-auditwork work - 4,000 ;
Pension administration fees 6,847 6,998
Advocacy
Exceptional costs		 1,868
269,316		 2,000
96,689
; 804,524 575,489
Analysis of direct costs - Charity
2025 2024
£ . £
Wages and salaries ; 4,629,670 4,274,161
Social security. 265,935 213,194
Pensions 145,878 112,712 .
Rent and rates 19,551 43,413
Lightand heat 91,668 54,132
Telephone 11,327 11,705
Postage and stationery . 46,291 1,071
Sundry expenses ; 10,844 10,598
Food and provisions 210,036 187,318
Medical and clinical costs : 61,100 68,634
Transport costs 24,460 8,777
Recruitment expenses 55,991 68,230
Training costs 15,905 31,222
Repairs and renewals 159,113 . 189,263
Cleaning 15,257 8,844
Registration costs 21,217 18,315
Travelling
Depreciation		 846
31,007		 (152)
22,438
5,816,096 §,323,876

, - 26 -

Docusign Envelope ID: 955138EB-8A91-44B4-9746-85FB1377E831

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We Change Lives (WCL) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

eee

Analysis of support costs - Charity.

.

2025 2024
£ £
Rent and rates 45,485 219,472
Insurance 117,018 115,060
Telephone 6,132 5,603
Postage and stationery 855 1,799
Training costs 6,195 34,195
Computer costs 177,414 147,418
Registration costs 2,100 7,173
Payroll fees - -
Depreciation 109,294 118,823
Bank charges 632,856 284,403
1,097,349 933,946
Analysis ofgovernance costs - Charity
2025 2024
£ £
Legal and professional fees 383,954 400,749
Auditors’ remuneration 48,000 13,000
Auditors' remuneration for non-auditwork - 4,000
Pension administration fees 6,847 6,998
Advocacy 1,868 2,000
Exceptional costs 269,316 78,362
709,985 505,110

7 TAXATION

The company is a registered charity and is therefore entitled to tax exemptions on all its income and gains, properly applied for its charitable purposes. It-does however have incorporated subsidiaries with a corporation tax charge for the year. They are not included in the consolidated accounts however due to them being a pre acquisition liability.

The corporation tax expense included for £8,780 relates to a prior year under provision of tax for 3L Care Limited.

Group
8 EMPLOYMENT COSTS . 2025 2024
‘ £ £
Wages and salaries 6,708,322 5,596,722
Social security costs 447,581 308,886
Contribution to defined contribution pension schemes 185,315 132,668
7,341,218 6,038,276

-27-

:

Docusign Envelope ID: 955138EB-8A91-44B4-9746-85FB1377E831

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We Change Lives (WCL) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

Charity

.

)

==> picture [412 x 441] intentionally omitted <==

----- Start of picture text -----
|||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---| |2025|2024| |£|£| |Wages|and|salaries|4,629,670|3,793,388| |Social|security|costs|265,935|213,194| |Contribution|to|defined|contribution|pension|schemes|145,878|112,712| |5,041,483|4,119,294| |The|average|number of persons|employed|by|the Group|during|the|year was as|follows:| |2025|2024| |No.|No.| |Head|office|12|12| |Direct|staff|260|277| |272|289| |The|average|number|of persons|employed|by|the|Charity|during|the|year was|as|follows:| |2025|2024| |No.|No.'| |Head|office|‘|12|12| |Direct|staff|179|178| |191|190| |The|number|of employees|in|the|Group|and|Company| |whose|employee|benefits|exceeded|£60,000|was:| |2025|2024| |No.|No.| |£60,001|- £70,000|1|1| |£70,001|- £80,000|-|-| |£80,001|-|£90,000|-|-| |£90,001|- £100,000|-|-| |£100,000|- £110,000|1|1|

----- End of picture text -----

The key management personnel of the Charity comprise the Senior Management Team and the Company Secretary. The total remuneration paid in respect of the charity’s key management personnel was £233,561 (2024 - £215,369), : . There were £46,171 (2024 - £nil) redundancy payments made by the charity during the year. The group made £46,171 (2024 - £31,417) of redundancy payments. .

During the year, no Trustees received any remuneration or other benefits (2024 - ENil).

During the year ended 31 March 2025, expenses totalling Enil were reimbursed or paid directly (2024 — ENil).

Docusign Envelope ID: 955138EB-8A91-44B4-9746-85FB1377E831

We Change Lives (WCL) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 rr _

:

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oe

10 INTANGIBLE FIXED ASSETS, and BUSINESS COMBINATIONS

;

_ Group

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||||||| |---|---|---|---|---|---| |Goodwill| |Cost| |At|1|April|2024|5,271,659| |Additions|10,276,209| |At|31|March|2025|15,547|868| |Amortisation| |At|1|April|2024|307,514| |Charge|for the|year|527,166| |At|31|March|2025|834,680| |Net|book|value| |At|31|March|2025|14,713,188| |At|31|March|2024|4,964,147|

----- End of picture text -----

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Business Combinations

On 31 March 2025, We Change Lives acquired 100% of the issued share capital of J D Zencare Limited, Creative Care (Leicester) Limited, PSA Care Services Limited and JO Care Services Limited, obtaining control. No profit or loss results have been consolidated into the group accounts due to it being immaterial. The amounts recognised in respect of the identifiable assets acquired and liabilities assumed are set out below:

==> picture [420 x 252] intentionally omitted <==

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |Fair|value|2025| |£| |Assets|and|liabilities|acquired| |Financial|assets|—|6,876,020| |Financial|liabilities|(1,996,830)| |Total|identifiable|assets|‘|4,879,190| |Goodwill|10,276,208| |Total|consideration|15,155,398| |Satisfied|by:|13,655,398| |Cash|1,500,000| |Deferred|consideration| |Total|15,155,398| |Cash|flow|analysis:| |Cash|consideration|16,129,670| |Less|cash|balances|acquired|;|(974,272)| |Less|deferred:consideration|(1,500,000)| |Net|cash|flow|arising on|acquisition|:|13,655,398|

----- End of picture text -----

Docusign Envelope ID: 955138EB-8A91-44B4-9746-85FB1377E831

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We Change Lives (WCL) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

.

11 TANGIBLE FIXED ASSETS

Group

Freehold Long- Fixtures Motor Improvements Improvements Total
Property term and vehicles to property
leasehold fittings
property
£ £ £ £ £ £
Cost or
valuation
At 1 April 6,002,561 210,000 971,531 - : 82,653 7,266,745
2024
Additions
Disposals
Acquired		 “ 128,380
(1,255,142)
1,374,811		 -
(210,000)
-		 103,927
(6,542)
7,878		 -
-
81,724		 14,950
-
-
through
business
combinations
At 31 March 6,250,610 - 1,076,794 81,724 97,603 7,506,731
2025
Depreciation
At 1 April 2,240,636 71,772 730,641 - 51,401 3,094,450
2024
Charge for 111,907 3,517 99,560 - 4,776 219,760
the year
Disposals (593,031) (75.289) (454) - - (668,774)
At 31 March 1,759,512 - 829,747 - 56,177 2,645,436
2025 ,
Netbook
value ,
At 31 March 4,491,098 - 247,047 81,724 41,426 4,172,295
2025 .
At 31 March
‘ 2024 3,761,925 138,228 240,890 - * 31,252 4,172,295

The cost of freehold property above is net of a grant to the value of £327,975 from the Health Authority dating back to the 1990s in relation to two properties. Whilst the charity is legal owner of the properties, there is a charge providing that in the event of a change in use or disposal of the properties, the Health Authority is to receive the open market value of the properties. The grant represents the total cost of the properties.

A grant was received to fund the purchase of another of the charity's freehold properties, 10a Lodge Lane, Warrington. A condition of the grant was that if the building were sold or no longer used as a nursing home for clients with mental health disorder, the grant would be repayable. The amount repayable would be 25.5% of the market value of the property at the date of sale less the costs of sale. There is no intention to sell or change the use of the property.

All fixed assets, including freehold property are for the use in direct furtherance of the charity's objects.

The net book value of assets includes £77,084 (2024 - £12,866) held under a hire purchase agreement. Depreciation of £12,866 (2024 - £17,156) was charged in the year on these.

,

Docusign Envelope ID: 9551 38EB-8A91-44B4-9746-85FB1377E831

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We Change Lives (WCL) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

eee

Charity

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;

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----- Start of picture text -----
Freehold Long-term Fixtures Improvements Total
Property leasehold and to property
property fittings
£ £ £ £ £
Cost or valuation
At 1 April 2024 3,997,203 210,000 ~ 850,355 82,653 5,140,211
Additions 128,380 - 66,537 14,950 209,867
Disposals (1,255,146) (210,000) (6,542) - (1,471,688)
At 31 March 2025 2,870,437 - 910,350 _ 97,603 3,878,390
Depreciation
At 1 April 2024 2,222,751 71,772 707,497 51,401 3,053,421
Charge for the year 64,293 3,517 67,715 4,776 140,301
Disposals (593,031) (75,289) (454) - (668,774)
At 31 March 2025 1,694,013 - 774,758 56,177 2,524,948
AtNet31bookMarchvalue2025 1,176,424 - 135,592 41,426. 1,353,442
At 31 March 2024 1,774,452 138,228 142,858 31,252 2,086,790
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The cost of freehold property above is net of a grant to the value of £327,975 from the Health Authority dating back to the 1990s in relation to two properties. Whilst the charity is legal owner of the properties, there is a charge providing that in the event of a change in use or disposal of the properties, the Health Authority is to receive the open market value of the properties. The grant represents the total cost of the properties.

All fixed assets, including freehold property are for the use in direct furtherance of the charity's objects.

The net book value of assets includes £nil (2024 - £12,866) held under a hire purchase agreement. Depreciation of £12,866 (2024 - £17,156) was charged in the year on these.

Docusign Envelope ID: 955138EB-8A91-44B4-9746-85FB1377E831

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We Change Lives (WCL) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 °

12 FIXED ASSET INVESTMENTS

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||||||||||| |---|---|---|---|---|---|---|---|---|---| |Charity|;| |Investments|in| |Subsidiary|companies|Total| |Cost| |At|1|April|2024|7,242,807|7,242,807| |Additions|16,129,670|16,129,670| |At|31|March|2025|23,372,477|23,372,477| |Name|Registered|office|Shareholding|%|of shares|held| |2025|2024| |Warrington|Community|Living|England|and Wales|Ordinary|100|100| |3L|Care|Limited|England|and Wales|Ordinary|100|100| |3L|Care|Group|Limited”|England|and Wales|Ordinary|100|100| |3L|Care|Holdings|Limited|England|and|Wales|Ordinary|100|100| |JD Zencare|Limited|England|and Wales|Ordinary|100|0| |PSA|Care|Services|Limited|England|and Wales|Ordinary|100|0| |Creative|Care|(Leicester)|Limited|England|and Wales|Ordinary|100|0| |JO|Care|Services|Limited|*|England|and Wales|Ordinary|100|0|

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All subsidiary companies have the same registered office as We Change Lives.

The principal activity of Warrington Community Living Limited is the supply of support services. The principal activity of 3L Care Limited, JD Zencare Limited and Creative Care (Leicester) Limited is the provision of care services.

The principal activity of 3L Care Group Limited, 3L Care Holdings Limited, PSA Care Services Limited and JO Care Services Limited is that of holding companies. ;

*Denotes direct investments held by We Change Lives. Other companies’ investments are held by 3L Care Group Limited, PSA Care Services Limited or JO Care Services Limited.

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|||||||||| |---|---|---|---|---|---|---|---|---| |13.|DEBTORS|Charity|Group| |2025|2024|2025|2024| |£|£|£|£| |Trade|debtors|454,909|530,551|1,308,882|953,348| |Other debtors|27,526|4,504|850,834|69,765| |Amounts|owed|by|group|undertakings|2,534,394|1,177,969|-|-| |-|Prepayments|and|accrued|income|337,526|294,147|429,384|330,380| |3,354,355|2,007,171|2,589,100|1,353,493|

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Docusign Envelope 1D: 955138EB-8A91-44B4-9746-85FB1377E831

We Change Lives (WCL) We Change Lives (WCL)
NOTESTO THE FINANCIALSTATEMENTS
FORTHE YEAR ENDED 31 MARCH 2025 :
; ; ;
.
a a a a a a a a a
14 CREDITORS -amounts falling due within one year .
Charity Group
2025 2024 2025 2024
£ £ £ £
Bank loans 1,471,790 438,172 1,471,790 438,172
Trade creditors 90,459 104,940 159,480 120,721
Amounts owed by group undertakings 3,997,587 - - -
Other taxation and social security 76,252 65,483 194,212 113,620
Other creditors 276,676 287,656 450,492 405,710
Deferred consideration 1,500,000 802,652 1,500,000 802,652
Accruals and deferred income 192,511 108,102 298,297 220,541
Corporation tax liability - - 452,434 156,470
Hire purchase - 13,259 - -
7,605,275 1,820,264 4,526,705 2,257,886
15 CREDITORS - amounts falling due aftermore than one year
: Charity Group
2025 2024 2025 2024
£ £ £ £
Bank loans 14,688,210 5,052,750 14,688,210 5,052,750
Hire purchase - - 100,466 13,259
During the year, the Charity and Group refinanced with Barclays Bank to fund the new acquisitions. The total
drawn down was £16,160,000. Interest is charged at 6.50%, and the loan is due for repayment over 5 years.
Security is provided against the group's freehold properties.
Included within the above are amounts falling due as follows:
Charity Group
2025 2024 2025 2024
£ £ £ £
Between one and two years
Bank loans 1,471,790 582,112 1,471,790 582,112
Charity Group
)
2025 2024 2025 2024
£ £ £ £
Between two and five years
Bankloans 4,415,370 1,746,336 4,415,370 . 1,746,336

a

Docusign Envelope ID: 955138EB-8A91-44B4-9746-85F B1377E831

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:

°

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We Change Lives (WCL) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

Charity Charity Group
2025 2024 2025 2024
£ £ £ £
Over five years
: Bank loans 10,272,840 2,724,302 10,272,840 2,724,302
16 FUNDS
At 1 April Incoming Outgoing At 31
2024 resources resources March
2025
£ £ £ £
Designated
funds 2,032,546 - - 2,032,546
General
funds
General funds 2,223,153 11,914,333 (11,264,781) 2,872,705
Revaluation
reserve		 , 38,950 ° - - 38,950
Restricted - 128,380 - 128,380
fund
Funds
4,294,649 12,042,713 (11,264,781) 5,072,581
17 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NETCASH FLOWFROM FROM OPERATING
: ACTIVITIES ,
Group
: 2025 2024
£ £
Net income forthe period 777,932 125,617
;
Adjustments for:
Depreciation charges 746,926 489,805
Profit on disposal (506,524) -
Finance costs 655,350 281,055
Finance income (3,237) -
Tax expense 8,780 -
. Donated property (128,380) -
Investments redeemed - 319,009
(Increase)/decrease in debtors : 4,175,998 (342,199)
Decrease in creditors (1,680, 388) (369,110)
Corporation tax paid (156,772) -
Netcashprovided byoperating activities 3,967,439 504,177

Docusign Envelope ID: 955138EB-8A91-4484-9746-85FB1377E831

:

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We Change Lives (WCL) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

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18 ANALYSIS OF CHANGES IN NET DEBT

Group ‘
Att
January
2024		 Cashflows Non cash
movements		 At31 March
2025
£ £ £ £
Cash at bank and in hand 1,142,305 1,118,102 . - 2,260,407
Hire purchase duewithin 1 year (13,259) 13,259 - -
Bank debt (5,490,922) (10,669,078) - (16,160,000)
(4,361,876) (9,537,717) - (13,899,593)

19 PENSION COMMITMENTS

The Charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Charity to the scheme and amounted to £145,878 (2024 - £112,712). At the end of the year outstanding contributions amounted to £5,902 (2024 - -£11,404). All pension charges are charged to unrestricted funds, in line with the fund out of which the wages and salaries are paid.’

The pension costs for the year for the group totals £185,315 (2024 - £132,668). At the end of the year, outstanding contributions amounted to £10,603 (2024 - £4,777)

20 OPERATING LEASE COMMITMENTS

At 31 March 2025 the Group had commitments to make future minimum lease payments under noncancellable operating leases as foliows:

2025 2024
£ £
Land and buildings
Within 1 year 47,016 6,736
Between 1 and 5 years 48,877 -
After more than 5 years - -
Total ) 95,893 6,736
Other
Within 1 year 35,237 37,606
Between 1 and 5 years 41,174 41,241
After more than 5 years - -
Total 76,411 78,847

Docusign Envelope ID: 955138EB-8A91-4484-9746-85FB1377E831

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We Change Lives (WCL) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

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.

At 31 March 2025 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:

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, ' 2025 2024
£ £
Land and buildings
“Within 1 year 27,016 6,736
Between 1 and 5 years - -
After more than 5 years - -
Total 27,016 6,736
Other
Within 1 year 30,484 35,813
Between 1 and 5 years 37,862 41,241
After more than 5 years - -
Total 68,346 77,054
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21 RELATED PARTY TRANSACTIONS

Neither the Group nor Charity have entered into any related party transactions during the year.

22 ~=~Financial guarantee

We Change Lives has given a guarantee under Section 479A of the Companies Act 2006 to guarantee all outstanding liabilities as at 31 March 2025 of Creative Care (Leicester) Limited, PSA Care Services Ltd, J O Care Services Ltd and J D Zencare Limited. Therefore, these companies are exempt from the requirements of the Act relating to the audit of individual accounts. The remaining subsidiaries have not taken this guarantee.

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