## **IMAGINE INDEPENDENCE** 

# **COMPANY LIMITED BY GUARANTEE** 

**ANNUAL REPORT AND FINANCIAL STATEMENTS** 

**FOR THE YEAR ENDED 31 MARCH 2025** 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE LEGAL AND ADMINISTRATIVE INFORMATION** 

**Trustees** Ms K Haslam Mr C Poole (ac�ng Chair) Mr R Cassidy Mr M Burns Ms W Baylis­Wareing Ms K Panagaki **Chief Execu�ve** Ms E Mather Mr P Edwards (Interim) **Secretary** Mrs E Mather Mr P Edwards **Charity number** 1010203 **Company number** 02699682 **Registered office** 25 Hope Street Liverpool L1 9BQ **Auditor** Mitchell Charlesworth (Audit) Limited Suites C,D,E, & F 14th Floor The Plaza 100 Old Hall Street Liverpool L3 9QJ **Bankers** HSBC plc 99­101 Lord Street Liverpool Merseyside L2 6PG 

(Appointed 28 August 2025) (Appointed 14 November 2025) (Resigned 26 June 2024) (Appointed 27 June 2024) (Resigned 26 June 2024) 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE CONTENTS** 

||**Page**|
|---|---|
|Trustees' report|1 ­ 6|
|Statement of trustees' responsibili�es|7|
|Independent auditor's report|8 ­ 10|
|Statement of fnancial ac�vi�es|11|
|Balance sheet|12|
|Statement of cash fows|13|
|Notes to the fnancial statements|14 ­ 29|





## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT)** 

## _**FOR THE YEAR ENDED 31 MARCH 2025**_ 

The trustees present their annual report and financial statements for the year ended 31 March 2025. 

The financial statements have been prepared in accordance with the accoun�ng policies set out in note 1 to the financial statements and comply with the charity's memorandum and ar�cles of associa�on, the Companies Act 2006 and "Accoun�ng and Repor�ng by Chari�es: Statement of Recommended Prac�ce applicable to chari�es preparing their accounts in accordance with the Financial Repor�ng Standard applicable in the UK and Republic of Ireland (FRS 102) (effec�ve 1 January 2019)". 

The Trustees’ Report incorporates the Directors’ and Strategic Report as required by Company Law. 

## **Objec�ves and ac�vi�es** 

Imagine Independence is a leading third sector organisa�on, passionate about suppor�ng people with mental health, neurodiversity, learning disabili�es and or au�sm to live fulfilled lives within the community. 

Our purpose is to enrich the lives of people we support, ensuring they live fulfilling and rewarding lives. To achieve our purpose, we ensure the people we support are fully engaged in their care and support, as we believe they are best placed to advise on what support and services will make a posi�ve difference to their lives. Socially inclusive prac�ce is the golden thread that runs through all services. 

Our values statement “Valuing People, Challenging S�gma, Transforming Lives” informs everything we do. 

We posi�vely recruit people who have personal experience of mental health problems as we believe they can walk by the side of people we support, sharing the wisdom of their recovery journeys to support others. 

Our greatest asset is our workforce. Every day our staff and volunteers generously share their experiences, knowledge and talents with the people they support. Through their focused dedica�on to Imagine’s mission, and the courage to challenge the status quo, people feel valued. They know they are making both the “everyday” and the “extraordinary” become possible for everyone. They walk alongside the people they have the privilege to serve, helping them to transform their lives, one day at a �me. And they never give up. 

Services are principally funded by public sector organisa�ons, including health bodies and local authori�es. 

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what ac�vi�es the charity should undertake and have operated in accordance with the relevant Imagine governance documents. 

## **Strategic report** 

The descrip�on under the headings "Achievements and performance" and "Financial review" meet the company law requirements for the trustees to present a strategic report. 

## **Achievements and performance** 

This report includes a further year of financial challenge across the whole of the health and social care sector, including Imagine with the higher than forecast level of infla�on and some funders not being able to award infla�onary upliBs to meet rising costs. 

The challenges ahead include the Na�onal Insurance Contribu�on increasing to 15% and the Na�onal Living Wage increasing by 6.7% for people aged 21 and over. Our business strategy includes speaking to commissioners regarding rising costs, reviewing staffing models and central costs to make efficiencies and working with sector bodies to lobby central government. 

We have made some improvement regarding recrui�ng and retaining staff and reducing agency costs, however these areas remain challenging. 

We have con�nued to invest in improving systems, processes, and team capacity to ensure we are equipped to deliver current services and scale effec�vely. 

- 1 - 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE** 

## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 MARCH 2025**_ 

Imagine has recently completed business planning. We have a Medium ­Term Business and Opera�onal Plan, ac�ons include : ­ 

- Strengthening service user involvement 

- Further embedding Social Inclusion 

- Strengthening Environmental Sustainability 

- Strengthening Internal and External Communica�on 

We have revised our audit tool. The new audit tool provides quan�ta�ve and qualita�ve data on service’s performance recognising the need to check both compliance with Health Support Chain Associa�on (HSCA) regula�on and on the priori�es that we have set as an organisa�on regarding, service user involvement, social inclusion, sustainability and con�nuous improvement. 

We have secured new business and have secured places on the following Frameworks: ­ 

## **Merseyside HASS (Housing Accommoda$on Support Service) – commissioned by NHS** 

## **Greater Manchester Suppor$ng People to Live Well at Home Flexible Purchasing System – u$lised by various GM NHS** 

**and local authority bodies** within the following categories 

- Learning disabili�es 

- Neurodivergent 

- Complex mental health 

- Complex lives 

## **Se/on Social Inclusion Service** – 12 months contract secured. 

## **Financial review** 

Imagine made an overall deficit of £106,946 in 2024/25 (compared to a deficit of £230,662 in 2023/24). Last year we reported that the deficit was predominantly due to the addi�onal costs resul�ng from employing agency staff in our services. We have made considerable steps in addressing this during 2024/25 reducing overall agency usage by nearly 30%. 

Whilst disappoin�ng that there has been a further deficit in 2024/25, it is broadly as budgeted and reflects the increased turbulence across the health and social care sector. The Execu�ve Management Team, under new leadership, is focusing on the long­term financial sustainability of the organisa�on reviewing the viability of our exis�ng direct services, bidding for new contracts and benchmarking our corporate and management costs to ensure value for money. 

Despite the deficit, the organisa�on’s total reserves were £1,654,126 at 31 March 2025, of which £889,665 relates to free reserves, compared to £1,761,072 at 31 March 2024 (free reserves £974,819) which is considered sufficient. 

The prior year figures have been adjusted which has significantly increased the 2023/24 deficit, which is now £230,662, more detail is shown in note 23. 

- 2 - 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_ 

## **Reserves policy** 

It is the policy of the charity that unrestricted funds which have not been designated for a specific use or invested in fixed assets should be maintained at a level equivalent to a minimum of 10% of gross income. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to con!nue the charity’s current ac!vi!es while considera!on is given to ways in which addi!onal funds may be raised. The free reserves as a percentage of 2024/25 turnover is 7.4% and, whilst this is not considered to be a significant shor(all on the approved policy, it has been noted and is subject to review at each mee!ng of the Finance and Performance Commi-ee. 

Whilst the overall balance sheet and financial standing remains adequate, we have con!nued to face delays in ge/ng payments from some of our commissioners. In recent years the opera!ons that Imagine deliver have increased in complexity and we now support people with greater needs and consequently, individually the funding is of a higher value. In addi!on, a number are through county­wide Frameworks and each placement is funded differently. During 2024/25 we have con!nued to improve our processes to ensure new packages are promptly added to the relevant Commissioner new processes were implemented to ensure that most packages were added to Commissioners’ portals promptly. However, there remain a small number of placements that require further review. 

It is important to note that, unlike tradi!onal businesses, Imagine, as a social care charity, does not consider it an appropriate op!on to terminate the support for an individual because of slow or late payment. 

The complete results for the year and the charity’s financial posi!on at the end of the year are shown in the a-ached financial statements. 

## **Risk policy** 

The Board’s review of risk con!nues to be broadly based on the key risks shown below. The register is supported by detailed opera!onal policies and procedures which are regularly reviewed internally and externally audited.  The corporate risk register comprises four themes: 

- Theme 1 – Opera!onal Risks 

- Theme 2 – Quality/Governance Risks 

- Theme 3 – Financial Risks 

- Theme 4 – Business Risks 

The trustees assess all iden!fied and poten!al risks together with the ac!ons proposed to mi!gate the impact on Imagine. The Risk Register is divided into three sec!ons including Opera!ons, Finance and Governance and Business Systems. The board have focused on the highest scoring risks in each area which are listed below:­ 

- Key Risk Opera!ons – Not having appropriately trained and high performing staff in appropriate posi!ons. 

Controls in place include having safer recruitment prac!ces, corporate and local induc!on processes, full training pathways, monitoring of training undertaken. 

- Key Risk Finance – Inadequate level of general unrestricted reserves. 

- Controls in place include budget monitoring at Board and SMT level, prompt and decisive ac!ons toaddress non­ viable services. 

- Key Risk 3 – Governance and Business Systems – Inadequate governance structure and processes. 

- Control in place include Memorandum of Ar!cles reviewed annually, Key Risk Register Statement regularly reviewed, investment in training and development of Trustees. 

- 3 - 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 MARCH 2025**_ 

The implica�ons, various ac�ons and responsibili�es linked to these risks have been considered and documented by the Board during 2024/25. 

The trustees have assessed the major risks to which charity is exposed, and are sa�sfied that systems are in place to mi�gate exposure to the major risks. 

## **Plans for the future** 

**Our approach to Growth** – Over the next 5­10 years, there will be three main elements of our new strategy, all contribu�ng to our core objec�ves of helping those we work with live their best lives which are keeping true toour values, enhancing our capabili�es, expanding our reach. 

Our key aim is to grow our income base to take advantage of scale efficiencies and to diversify our income sources to reduce reliance on single streams. 

## We will: 

- Con�nue to deliver high quality services to ensure we are re­commissioned for those services we want to keep when current contracts end. 

- Explore fee upli/s from commissioners where fees have not been automa�cally updated. 

- Build strong rela�onships with commissioners demonstra�ng impact through case studies. 

- Tender for appropriate services where there are opportuni�es to take on addi�onal support packages in areas we operate in that can provide sufficient margins and contribute to management and central costs. 

- We will consider applying to join Supported Living Frameworks in areas we operate in, where the fee rate allows for all service costs to be covered. 

- Explore grant opportuni�es as they arise. 

## **Equality and Diversity** 

We recognize that Equality, Diversity and Inclusion (EDI) work requires sustained effort, and high­level commitment. Our EDI work is therefore being led and overseen personally by our CEO, with ac�ve engagement of our Board, staff, service users, their families, and other stakeholders. 

## **Environmental Issues** 

The Board is mindful of the organisa�on’s environmental impact. Our environmental policy and strategy will be reviewed which will align with our commitment to reduce the environmental impact of services. 

## **Employment and Training** 

Imagine is dedicated to providing excep�onal person­centred care by cul�va�ng a thriving, well­supported, and skilled workforce empowered to meet diverse client needs. We will review our training pathways, con�nue to invest in to Train the Trainer programmes and co­produce a number of training sessions. 

## **Improving Business systems** 

Good progress con�nues to be made in the implementa�on of the People HR system, which will significantly enhance our ability to manage workforce data, streamline HR and recruitment processes, and ensure compliance with repor�ng requirements. 

## **Lone Working System – Orbis:** 

We are rolling out a new lone worker safety app, which will be mandatory for Support and Senior Support Workers. 

## **Telephony & Internet:** 

We are planning to undertake a full review of telephony which will include exploring the poten�al to phase out landlines in favour of MS Teams. 

- 4 - 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE** 

## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_ 

IT System improvements currently underway include: 

- Mul�­Factor Authen�ca�on (MFA): Scheduled for implementa�on shortly. 

- SharePoint Migra�on 

- Internet Upgrades 

- Device Upgrades 

## **Structure, governance and management** 

The charity is a company limited by guarantee and is governed by its Memorandum and Ar�cles of Associa�on. 

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: 

Ms P Berry (Chair) (Resigned 13 August 2025) Mr A P Connor (Resigned 21 August 2024) Ms K Haslam Mr C Poole (ac�ng Chair) Mr R Cassidy Mr M Burns Ms W Baylis­Wareing (Appointed 28 August 2025) Ms K Panagaki (Appointed 14 November 2025) 

None of the trustees have any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up. The Board of Directors are the charity’s trustees. All Directors give of their �me freely and no Director received remunera�on in the year. Details of Directors’ expenses and related third party transac�ons are disclosed in the notes to the accounts. 

Our trustees are recruited by direct approach, recruitment adver�sing or word of mouth. On appointment, all new trustees meet with relevant staff to receive a full induc�on into the opera�ons and governance of Imagine. In addi�on, they are given access to the dedicated trustee database of mee�ng reports and minutes and other key documents. Ongoing development is supported through visits to services and invita�ons to a<end our regular management training events. 

The full Board meets on a quarterly basis to consider policy, strategy and corporate governance. In the week prior to the Board, the Finance and Planning Commi<ee meet to review the financial posi�on of the charity and have responsibility for the overview and monitoring of strategic financial planning, corporate governance and budgetary processes. These �metabled mee�ngs are supplemented by addi�onal mee�ngs to consider budget­se>ng and, if necessary, to finalise the accounts. 

We are in the process of recrui�ng one new Trustee and are planning to recruit other Trustees to fill skill gaps, following this we will review commi<ee structures. 

Formal trustee mee�ngs are held in person, however there is the opportunity to join online via Teams. Mee�ngs are a<ended by members of the charity’s Execu�ve Management Team. Elaine Mather is CEO and Company Secretary. 

## **Pay Policy for Senior Staff** 

The Senior Management Team (SMT) is comprised of the key management personnel of the charity, who are responsible for direc�ng and controlling, running and opera�ng services on a day­to­day basis. The pay of the SMT is reviewed annually, at the same �me as the pay of all staff is considered. In view of the financial pressures on the organisa�on from the public sector austerity measures, it is not considered appropriate for any automa�c upra�ng of salaries in line with any index. Salary levels are considered in the context of the recruitment pressures, statutory guidance, financial performance, budgetary projec�on and the overall financial health of the charity. During 2024/25, senior managers received a percentage salary increase in line with that awarded to all other staff. 

- 5 - 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_ 

## **Con�ngent liabili�es** 

Con�ngent liabili�es con�nue to be an issue, which are a ma�er of discussion between Imagine and the Pensions Trust.  As stated in previous reports, the deficit is small and represents a technical deficit only, with no immediate prospect of a call on charitable funds to supplement the Pension Trust’s assets.  This is monitored throughout the year when new informa�on is made available and when a new actuarial valua�on/funding statement is issued. 

## **Conclusion** 

This report reflects a year of con�nuing challenge for Imagine. It is pleasing to note that, as a result of the improvements achieved in recent years, the staffing resources and financial standing of the charity have proved robust enough to meet these challenges. 

The trustees warmly acknowledge and thank staff, volunteers and the people being supported for their individual contribu�ons to Imagine’s work. 

## **Auditor** 

In accordance with the company's ar�cles, a resolu�on proposing that Mitchell Charlesworth (Audit) Limited be reappointed as auditor of the company will be put at a General Mee�ng. 

## **Disclosure of informa�on to auditor** 

Each of the trustees has confirmed that there is no informa�on of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to iden�fy such relevant informa�on and to establish that the auditor is aware of such informa�on. 

We commend this report as an accurate and fair account of Imagine Independence’s ac�vi�es from April 2024 to March 2025. 

The trustees' report, including the strategic report, was approved by the Board of Trustees. 

## **Mr C Poole (ac�ng Chair)** 

Trustee Dated: 19 December 2025 

- 6 - 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE STATEMENT OF TRUSTEES' RESPONSIBILITIES** 

## _**FOR THE YEAR ENDED 31 MARCH 2025**_ 

The trustees, who are also the directors of Imagine Independence for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accoun�ng Standards (United Kingdom Generally Accepted Accoun�ng Prac�ce). 

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and applica�on of resources, including the income and expenditure, of the charitable company for that year. 

In preparing these financial statements, the trustees are required to: 

­ select suitable accoun�ng policies and then apply them consistently; 

­ observe the methods and principles in the Chari�es SORP; 

­ make judgements and es�mates that are reasonable and prudent; 

­ state whether applicable UK Accoun�ng Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

­ prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will con�nue in opera�on. 

The trustees are responsible for keeping adequate accoun�ng records that disclose with reasonable accuracy at any �me the financial posi�on 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 preven�on and detec�on of fraud and other irregulari�es. 

- 7 - 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT** 

## **TO THE TRUSTEES OF IMAGINE INDEPENDENCE** 

## **Opinion** 

We have audited the financial statements of Imagine Independence (the ‘charity’) for the year ended 31 March 2025 which comprise the statement of financial ac#vi#es, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accoun#ng policies. The financial repor#ng framework that has been applied in their prepara#on is applicable law and United Kingdom Accoun#ng Standards, including Financial Repor#ng Standard 102 _The Financial Repor�ng Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accoun#ng Prac#ce). 

- In our opinion, the financial statements: 

- ­ give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its incoming resources and applica#on of resources, including its income and expenditure, for the year then ended; 

- ­ have been properly prepared in accordance with United Kingdom Generally Accepted Accoun#ng Prac#ce; and 

- ­ have been prepared in accordance with the requirements of the Companies Act 2006. 

## **Basis for opinion** 

We conducted our audit in accordance with Interna#onal Standards on Audi#ng (UK) (ISAs (UK)) and applicable law. Our responsibili#es under those standards are further described in the _Auditor's responsibili�es for the audit of the financial statements_ sec#on of our report. We are independent of the charity 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 responsibili#es 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 rela"ng to going concern** 

In audi#ng the financial statements, we have concluded that the trustees' use of the going concern basis of accoun#ng in the prepara#on of the financial statements is appropriate. 

Based on the work we have performed, we have not iden#fied any material uncertain#es rela#ng to events or condi#ons that, individually or collec#vely, may cast significant doubt on the charity’s ability to con#nue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

Our responsibili#es and the responsibili#es of the trustees with respect to going concern are described in the relevant sec#ons of this report. 

## **Other informa"on** 

The other informa#on comprises the informa#on included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other informa#on contained within the annual report. Our opinion on the financial statements does not cover the other informa#on and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other informa#on and, in doing so, consider whether the other informa#on is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we iden#fy such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other informa#on, we are required to report that fact. 

We have nothing to report in this regard. 

## **Opinions on other ma'ers prescribed by the Companies Act 2006** 

In our opinion, based on the work undertaken in the course of our audit: 

- ­ the informa#on given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report and the strategic report prepared for the purposes of company law, is consistent with the financial statements; and 

- ­ the strategic report and the directors' report included within the trustees' report have been prepared in accordance with applicable legal requirements. 

- 8 - 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT (CONTINUED)** 

## **TO THE TRUSTEES OF IMAGINE INDEPENDENCE** 

## **Ma�ers on which we are required to report by excep+on** 

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not iden#fied material misstatements in the strategic report or the directors' report included within the trustees' report. 

We have nothing to report in respect of the following ma?ers in rela#on to which the Companies Act 2006 requires us to report to you if, in our opinion: 

- ­ adequate accoun#ng records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 

- ­ the financial statements are not in agreement with the accoun#ng records and returns; or 

- ­ certain disclosures of trustees' remunera#on specified by law are not made; or 

- ­ we have not received all the informa#on and explana#ons we require for our audit. 

## **Responsibili+es of trustees** 

As explained more fully in the statement of trustees' responsibili#es, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the prepara#on of the financial statements and for being sa#sfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the prepara#on of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to con#nue as a going concern, disclosing, as applicable, ma?ers related to going concern and using the going concern basis of accoun#ng unless the trustees either intend to liquidate the charitable company or to cease opera#ons, or have no realis#c alterna#ve but to do so. 

## **Auditor's responsibili+es for the audit of the financial statements** 

Our objec#ves 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. 

The extent to which our procedures are capable of detec#ng irregulari#es, including fraud, is detailed below. 

## **The extent to which the audit was considered capable of detec+ng irregulari+es, including fraud** 

Our approach to iden#fying and assessing the risks of material misstatement in respect of irregulari#es, including fraud and non­compliance with laws and regula#ons, was as follows: 

- the engagement partner ensured that the engagement team collec#vely had the appropriate competence, capabili#es and skills to iden#fy or recognise non­compliance with applicable laws and regula#ons; 

- we iden#fied the laws and regula#ons applicable to the company through discussions with directors and other management; 

- we focused on specific laws and regula#ons which we considered may have a direct material effect on the financial statements or the opera#ons of the company, including the Companies Act 2006, taxa#on legisla#on and data protec#on, an#­bribery, employment and health and safety legisla#on; 

- we assessed the extent of compliance with the laws and regula#ons iden#fied above through making enquiries of management and inspec#ng legal correspondence; and 

- iden#fied laws and regula#ons were communicated within the audit team regularly and the team remained alert to instances of non­compliance throughout the audit. 

- 9 - 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT (CONTINUED)** 

## **TO THE TRUSTEES OF IMAGINE INDEPENDENCE** 

We assessed the suscep�bility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: 

- making enquiries of management as to where they considered there was suscep�bility to fraud, their knowledge of actual, suspected and alleged fraud; and 

- considering the internal controls in place to mi�gate risks of fraud and non­compliance with laws and regula�ons. 

To address the risk of fraud through management bias and override of controls, we: 

- performed analy�cal procedures to iden�fy any unusual or unexpected rela�onships; 

- tested journal entries to iden�fy unusual transac�ons; 

- assessed whether judgements and assump�ons made in determining the accoun�ng es�mates were indica�ve of poten�al bias; and 

- inves�gated the ra�onale behind significant or unusual transac�ons. 

In response to the risk of irregulari�es and non­compliance with laws and regula�ons, we designed procedures which included, but were not limited to: 

- agreeing financial statement disclosures to underlying suppor�ng documenta�on; 

- reading the minutes of mee�ngs of those charged with governance; and 

- enquiring of management as to actual and poten�al li�ga�on and claims. 

There are inherent limita�ons in our audit procedures described above. The more removed that laws and regula�ons are from financial transac�ons, the less likely it is that we would become aware of non­compliance. Audi�ng standards also limit the audit procedures required to iden�fy non­compliance with laws and regula�ons to enquiry of the directors and other management and the inspec�on of regulatory and legal correspondence, if any. 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. 

A further descrip�on of our responsibili�es is available on the Financial Repor�ng Council’s website at: h+ps:// www.frc.org.uk/auditorsresponsibili�es. This descrip�on forms part of our auditor's report. 

## **Use of our report** 

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those ma+ers we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permi+ed by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed. 

## **Mr Tony Stanley ACA (Senior Statutory Auditor)** 

**for and on behalf of Mitchell Charlesworth (Audit) Limited** 22 December 2025 

**Accountants** 

**Statutory Auditor** 

Suites C,D,E, & F 14th Floor The Plaza 100 Old Hall Street Liverpool L3 9QJ 

- 10 - 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** 

## _**FOR THE YEAR ENDED 31 MARCH 2025**_ 

|||||**Unrestricted**|Unrestricted|Unrestricted|
|---|---|---|---|---|---|---|
|||||**funds**||funds|
|||||**2025**||2024|
|||||||as restated|
||||**Notes**|**£**||**£**|
|**Income from:**|||||||
|Dona�ons and legacies|||**3**|3,639||49,301|
|Charitable ac�|vi�|es ­ Income|**4**|11,964,246||12,149,141|
||||||||
|**Total income**||||11,967,885||12,198,442|
||||||||
|**Expenditure on:**|||||||
|Charitable ac�|vi�|es ­ Expenditure|**5**|12,062,614||12,429,104|
||||||||
|**Total expenditure**||||12,062,614||12,429,104|
||||||||
|**Net (expenditure)/income for the year**||||(94,729)||(230,662)|
|**Other recognised gains and losses**|||||||
|Actuarial loss on||defned beneft pension schemes||(12,217)||­|
||||||||
|**Net movement in funds**||||(106,946)||(230,662)|
|**Reconcilia4on**|**of funds**||||||
|Fund balances|at|1 April 2024||1,761,072||1,991,734|
||||||||
|**Fund balances at 31 March 2025**||||1,654,126||1,761,072|



The statement of financial ac�vi�es includes all gains and losses recognised in the year. 

All income and expenditure derive from con�nuing ac�vi�es. 

The statement of financial ac�vi�es also complies with the requirements for an income and expenditure account under the Companies Act 2006. 

The movement in funds detailed above complies with the requirements for a statement of changes in equity under FRS102. 

- 11 - 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE BALANCE SHEET** 

## _**AS AT 31 MARCH 2025**_ 

|||**2025**|||**2024**|||
|---|---|---|---|---|---|---|---|
||||||**as restated**|||
||**Notes**|**£**|**£**||**£**|**£**||
|**Fixed assets**||||||||
|Intangible assets|**10**||5,508|||8,262||
|Tangible assets|**11**||758,953|||777,991||
|||||||||
||||764,461|||786,253||
|**Current assets**||||||||
|Debtors|**13**|1,263,586|||1,459,663|||
|Cash at bank and in hand||495,374|||804,976|||
|||||||||
|||1,758,960|||2,264,639|||
|**Creditors: amounts falling due within one**||||||||
|**year**|**14**|(856,963)|||(1,284,267)|||
|||||||||
|Net current assets|||901,997|||980,372||
|||||||||
|**Total assets less current liabili1es**|||1,666,458|||1,766,625||
|**Provisions for liabili1es**|**16**||(12,332)|||(5,553)||
|||||||||
|**Total net assets**|||1,654,126|||1,761,072||
|**The funds of the charity**||||||||
|Unrestricted funds|||1,654,126|||1,761,072||
|||||||||
|**Total charity funds**|||1,654,126|||1,761,072||



The financial statements were approved by the trustees and authorised for issue on 19 December 2025 and are signed on its behalf by: 

Mr C Poole (ac/ng Chair) 

**Trustee** 

## **Company Registra1on No. 02699682** 

- 12 - 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE STATEMENT OF CASH FLOWS** 

## _**FOR THE YEAR ENDED 31 MARCH 2025**_ 

|||**2025**||**2024**|**2024**|
|---|---|---|---|---|---|
||**Notes**|**£**|**£**|**£**|**£**|
|**Cash fows from opera'ng ac'vi'es**||||||
|Cash (absorbed by)/generated from opera/ons|**21**||(210,835)||542,542|
|**Inves'ng ac'vi'es**||||||
|Purchase of intangible assets||­||(11,016)||
|Purchase of tangible fxed assets||(98,767)||(109,733)||
|||||||
|**Net cash used in inves'ng ac'vi'es**|||(98,767)||(120,749)|
|**Net (decrease)/increase in cash and cash equivalents**|||(309,602)||421,793|
|Cash and cash equivalents at beginning of year|||804,976||383,183|
|||||||
|**Cash and cash equivalents at end of year**|||495,374||804,976|



- 13 - 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE NOTES TO THE  FINANCIAL STATEMENTS** 

## _**FOR THE YEAR ENDED 31 MARCH 2025**_ 

## **1 Accoun�ng policies** 

## **Charity informa�on** 

Imagine Independence is a private company limited by guarantee incorporated in England and Wales. The registered office is 25 Hope Street, Liverpool, L1 9BQ. 

## **1.1 Accoun�ng conven�on** 

The financial statements have been prepared in accordance with the charity's memorandum and ar(cles of associa(on, the Companies Act 2006 and "Accoun(ng and Repor(ng by Chari(es: Statement of Recommended Prac(ce applicable to chari(es preparing their accounts in accordance with the Financial Repor(ng Standard applicable in the UK and Republic of Ireland (FRS 102) (effec(ve 1 January 2019)". The charity is a Public Benefit En(ty as defined by FRS 102. 

The financial statements are prepared in sterling, which is the func(onal currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. 

The financial statements have been prepared under the historical cost conven(on. The principal accoun(ng policies adopted are set out below. 

## **1.2 Going concern** 

At the (me of approving the financial statements, the trustees have a reasonable expecta(on that the charity has adequate resources to con(nue in opera(onal existence for the foreseeable future. Thus the trustees con(nue to adopt the going concern basis of accoun(ng in preparing the financial statements. 

## **1.3 Charitable funds** 

Unrestricted funds are available for use at the discre(on of the trustees in furtherance of their charitable objec(ves. 

Designated funds comprise funds which have been set aside at the discre(on of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements. 

Restricted funds are subject to specific condi(ons by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. 

## **1.4 Income** 

Income is recognised when the charity is legally en(tled to it a?er any performance condi(ons have been met, the amounts can be measured reliably, and it is probable that income will be received. 

Cash dona(ons are recognised on receipt. Other dona(ons are recognised once the charity has been no(fied of the dona(on, unless performance condi(ons require deferral of the amount. Income tax recoverable in rela(on to dona(ons received under Gi? Aid or deeds of covenant is recognised at the (me of the dona(on. 

Legacies are recognised on receipt or otherwise if the charity has been no(fied of an impending distribu(on, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a con(ngent asset. 

- 14 - 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 MARCH 2025**_ 

## **1 Accoun�ng policies** 

## **(Con�nued)** 

Income from grants, including capital grants, and contract income is included in income when these are receivable, except as follows: 

- When donors specify that dona�ons and grants given to the charity must be used in future accoun�ng periods, the income is deferred un�l those periods. 

- When donors impose condi�ons which have to be fulfilled before the charity becomes en�tled to use such income, the income is deferred and not included in income un�l the precondi�ons for use have been met. 

- When donors specify that dona�ons and grants, including capital grants, are for par�cular restricted purposes, which do not amount to precondi�ons regarding en�tlement, this income is included in income of restricted funds when receivable. 

Voluntary income includes discre�onary grants for projects, goods and services where no service agreement or contract exists. 

Other grants, which have par�cular service requirements and which are provided in accordance with a contract or service level agreement are included in the statement of financial ac�vi�es under the heading charitable ac�vi�es. 

## **1.5 Expenditure** 

Expenditure reflects all amounts paid and accrued during the year. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates. All costs are allocated between the expenditure categories of the statement of financial ac�vi�es (SOFA) on a basis designed to reflect the use of the resource. 

## _Charitable expenditure_ 

Charitable expenditure comprises those costs incurred by the charity in the delivery of its ac�vi�es and services for its beneficiaries. It includes both costs that can be allocated directly to such ac�vi�es and those costs of an indirect nature necessary to support them. Governance costs and support costs are allocated to charitable ac�vi�es in the SOFA based on the following alloca�on method 

Senior management salary costs ­ staff �me Senior management employer's costs ­ staff �me Employer costs ­ staff �me Premises expenses ­ use of loca�on Office running costs ­ usage of items 

## **1.6 Intangible fixed assets other than goodwill** 

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amor�sa�on and accumulated impairment losses. 

Amor�sa�on is recognised so as to write off the cost or valua�on of assets less their residual values over their useful lives on the following bases: 

Development costs and website 

25% p.a on cost 

- 15 - 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 MARCH 2025**_ 

## **1 Accoun�ng policies** 

## **(Con�nued)** 

## **1.7 Tangible fixed assets** 

Tangible fixed assets are ini�ally measured at cost and subsequently measured at cost or valua�on, net of deprecia�on and any impairment losses. 

All assets cos�ng more than £500 are capitalised at cost. 

Deprecia�on is recognised so as to write off the cost or valua�on of assets less their residual values over their useful lives on the following bases: 

Freehold land and buildings 2% p.a. on cost Leasehold land and buildings 2 ­ 4% p.a. on cost Fixtures and fi+ngs 10% ­ 33.33% p.a. on cost Computers 25% p.a. on cost 

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial ac�vi�es. 

## **1.8 Impairment of fixed assets** 

At each repor�ng end date, the charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indica�on that those assets have suffered an impairment loss. If any such indica�on exists, the recoverable amount of the asset is es�mated in order to determine the extent of the impairment loss (if any). 

## **1.9 Cash and cash equivalents** 

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short­term liquid investments with original maturi�es of three months or less, and bank overdra3s. 

## **1.10 Financial instruments** 

The charity has elected to apply the provisions of Sec�on 11 ‘Basic Financial Instruments’ and Sec�on 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. 

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. 

Financial assets and liabili�es are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an inten�on to se;le on a net basis or to realise the asset and se;le the liability simultaneously. 

## _**Basic financial assets**_ 

Basic financial assets, which include debtors and cash and bank balances, are ini�ally measured at transac�on price including transac�on costs and are subsequently carried at amor�sed cost using the effec�ve interest method unless the arrangement cons�tutes a financing transac�on, where the transac�on is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amor�sed. 

- 16 - 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 MARCH 2025**_ 

## **1 Accoun�ng policies** 

## **(Con�nued)** 

Basic financial liabili�es, including creditors and bank loans are ini�ally recognised at transac�on price unless the arrangement cons�tutes a financing transac�on, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabili�es classified as payable within one year are not amor�sed. 

Debt instruments are subsequently carried at amor�sed cost, using the effec�ve interest rate method. 

Trade creditors are obliga�ons to pay for goods or services that have been acquired in the ordinary course of opera�ons from suppliers. Amounts payable are classified as current liabili�es if payment is due within one year or less. If not, they are presented as non­current liabili�es. Trade creditors are recognised ini�ally at transac�on price and subsequently measured at amor�sed cost using the effec�ve interest method. 

## _**Derecogni�on of financial liabili�es**_ 

Financial liabili�es are derecognised when the charity’s contractual obliga�ons expire or are discharged or cancelled. 

## **1.11 Employee benefits** 

The cost of any unused holiday en�tlement is recognised in the period in which the employee’s services are received. 

Termina�on benefits are recognised immediately as an expense when the charity is demonstrably commi'ed to terminate the employment of an employee or to provide termina�on benefits. 

## **1.12** 

Payments to defined contribu�on re�rement benefit schemes are charged as an expense as they fall due. 

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice. 

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introduc�ons, benefit changes, se'lements and curtailments are recognised as incurred. 

The net interest element is determined by mul�plying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribu�on and benefit payments. The net interest is recognised in income/(expenditure) for the year. 

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other recognised gains and losses in the period in which they occur and are not reclassified to income/(expenditure) in subsequent periods. 

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obliga�on (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obliga�ons are to be se'led directly. Fair value is based on market price informa�on, and in the case of quoted securi�es is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contribu�ons or agreed refunds from the scheme. 

- 17 - 



**IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 MARCH 2025**_ 

## **1 Accoun�ng policies** 

## **(Con�nued)** 

## **1.13 Taxa�on** 

The charity benefits from various exemp�ons from taxa�on afforded by tax legisla�on and is not liable to corpora�on tax on income or gains falling within those exemp�ons. Recovery is made of tax deducted from qualifying income and from receipts under Gi  Aid. The charity is not able to recover Value Added Tax. Expenditure is recorded in the accounts inclusive of VAT. 

## **2 Cri�cal accoun�ng es�mates and judgements** 

In the applica�on of the charity’s accoun�ng policies, the trustees are required to make judgements, es�mates and assump�ons about the carrying amount of assets and liabili�es that are not readily apparent from other sources. The es�mates and associated assump�ons are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these es�mates. 

The es�mates and underlying assump�ons are reviewed on an ongoing basis. Revisions to accoun�ng es�mates are recognised in the period in which the es�mate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. 

## **Bad and Doub.ul Debts** 

Trade Debtors are recorded at their es�mated realisable value. The recoverability of these debts is subject to various external influences such as the economic environment as well as more tangible factors such as the age of the debt. The trustees es�mate what value of these debts is likely to be irrecoverable and then maintain an ongoing provision. 

## **3 Dona�ons and legacies** 

||**2025**||**2024**|
|---|---|---|---|
||**£**||**£**|
|Dona�ons and gi s|3,639||16,534|
|Grants receivable|­||32,767|
|||||
||3,639||49,301|
|**Grants receivable for core ac�vi�es**||||
|Mental Health First Aid Training|­||28,360|
|Other|­||4,407|
|||||
||­||32,767|



- 18 - 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 MARCH 2025**_ 

## **4 Charitable ac!vi!es ­ Income Promo!ng independent lives** 

|**Promo!ng independent lives**||||
|---|---|---|---|
||||**Restated**|
||**2025**||**2024**|
||**£**||**£**|
|Income from charitable ac�vi�es|10,665,411||10,691,151|
|Service funding|21,820||64,713|
|Shared rents and service charges (2024 restated as per note 23)|1,277,015||1,393,277|
|||||
||11,964,246||12,149,141|
|**Charitable ac!vi!es ­ Expenditure**||||
|**Promo!ng independent lives**||||
||**2025**||**2024**|
||**£**||**£**|
|Staf costs|9,560,780||9,696,730|
|Other staf costs|119,694||86,866|
|Travel|60,317||91,207|
|Premises and ofce costs|1,765,648||1,918,576|
|Service costs|108,784||163,502|
|Other|72,911||122,736|
|||||
||11,688,134||12,079,617|
|Share of support costs (see note 6)|173,501||141,796|
|Share of governance costs (see note 6)|200,979||207,691|
|||||
||12,062,614||12,429,104|



## **5 Charitable ac!vi!es ­ Expenditure Promo!ng independent lives** 

- 19 - 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 MARCH 2025**_ 

|**6**|**Support costs**||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
||**Support costs**||**Governance**|||**2025**|Support costs||Governance|||||2024|
|||||**costs**|||||||costs||||
|||**£**||**£**||**£**||£||||£||£|
||Deprecia�on and||||||||||||||
||amor�sa�on|120,625||­||120,625||117,146||||­||117,146|
||Bank charges|2,245||­||2,245||2,689||||­||2,689|
||General expenses|50,631||­||50,631||21,961||||­||21,961|
||Audit fees|­||19,950||19,950||­|||19,000|||19,000|
||Accountancy & payroll|­||16,568||16,568||­|||8,326|||8,326|
||Legal and professional|­||164,461||164,461||­|||180,365|||180,365|
||||||||||||||||
|||173,501||200,979||374,480||141,796|||207,691|||349,487|
||Analysed between||||||||||||||
||Charitable ac�vi�es|173,501||200,979||374,480||141,796|||207,691|||349,487|
|**7**|**Auditor's remunera,on**||||||||||||||
|The analysis of auditor's remunera||�on is as follows:|||||||||||||
|**Fees payable to the charity's auditor**|||||||||||**2025**|||**2024**|
||||||||||||**£**|||**£**|
|Audit of the charity's annual accounts||||||||||19,950||||19,000|
|**Non­audit services**|||||||||||||||
|All other non­audit services||||||||||16,568||||8,326|



## **8 Trustees** 

None of the trustees (or any persons connected with them) received any remunera�on or benefits from the charity during the year. No expenses were paid to trustees in the year (2024 £nil) . 

- 20 - 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 MARCH 2025**_ 

## **9 Employees** 

The average monthly number of employees during the year was: 

|The average monthly number of employees during the year was:||||
|---|---|---|---|
||**2025**||**2024**|
||**Number**||**Number**|
|Clerical, administra�ve and directors|28||26|
|Support care staf|281||297|
|||||
|Total|309||323|
|**Employment costs**|**2025**||**2024**|
||**£**||**£**|
|Wages and salaries|8,654,350||8,809,056|
|Social security costs|722,516||704,413|
|Other pension costs|183,914||183,261|
|||||
||9,560,780||9,696,730|



Included in wages and salaries are termina�on payments of £21,363 (2024: £12,844) and payments to agency staff and temporary workers of £583,343 (2024: £818,527). 

The number of employees whose annual remunera�on was more than £60,000 is as follows: 

|follows:||||
|---|---|---|---|
|||**2025**|**2024**|
|||**Number**|**Number**|
|£60,000|­ £70,000|2|3|
|£70,000|­ £80,000|­|1|
|£80,000|­ £90,000|­|1|
|£90,000|­ £100,000|1|­|



- 21 - 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 MARCH 2025**_ 

## **10 Intangible fixed assets** 

|**Intangible fxed assets**|||
|---|---|---|
||**Development costs and website**||
|||**£**|
|**Cost**|||
|At 1 April 2024||17,616|
||||
|At 31 March 2025||17,616|
||||
|**Amor-sa-on**|||
|At April 2024||9,354|
|Amor�sa�on charged for the year||2,754|
||||
|At 31 March 2025||12,108|
||||
|**Carrying amount**|||
|At 31 March 2025||5,508|
|At 31 March 2024||8,262|



|**11**|**Tangible fxed assets**||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
|||**Freehold land**||<br>**Leasehold land**||<br>**Fixtures and**||**Computers**||**Total**|
|||**and buildings**||**and buildings**||**f1ngs**|||||
||||**£**||**£**|**£**||**£**||**£**|
||**Cost**||||||||||
||At 1 April 2024||579,945||330,093|323,045||131,980||1,365,063|
||Addi�ons||­||­|72,865||25,902||98,767|
||||||||||||
||At 31 March 2025||579,945||330,093|395,910||157,882||1,463,830|
||||||||||||
||**Deprecia-on and impairment**||||||||||
||At 1 April 2024||133,803||117,233|255,583||80,453||587,072|
||Deprecia�on charged in the year||11,599||8,469|68,440||29,297||117,805|
||||||||||||
||At 31 March 2025||145,402||125,702|324,023||109,750||704,877|
||||||||||||
||**Carrying amount**||||||||||
||At 31 March 2025||434,543||204,391|71,887||48,132||758,953|
||At 31 March 2024||446,142||212,860|67,462||51,527||777,991|



- 22 - 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 MARCH 2025**_ 

|**12**|**Financial instruments**|||**2025**|||**2024**|
|---|---|---|---|---|---|---|---|
|||||**£**|||**£**|
||**Carrying amount of fnancial assets**|||||||
||Debt instruments measured at amor�sed cost||1,704,353||||2,168,544|
||**Carrying amount of fnancial liabili.es**|||||||
||Measured at amor�sed cost|||674,833|||876,527|
|**13**|**Debtors**|||||||
||||||||**Restated**|
|||||**2025**|||**2024**|
||**Amounts falling due within one year:**|||**£**|||**£**|
||Trade debtors|||673,518|||680,221|
||Other debtors|||27,836|||28,963|
||Prepayments and accrued income|||562,232|||750,479|
|||||||||
|||||1,263,586|||1,459,663|
|**14**|**Creditors: amounts falling due within one year**|||||||
||||||||**Restated**|
|||||**2025**|||**2024**|
|||**Notes**||**£**|||**£**|
||Other taxa�on and social security|||168,806|||159,447|
||Deferred income|**15**||13,324|||248,293|
||Trade creditors|||122,897|||272,019|
||Other creditors|||229,090|||277,257|
||Accruals|||322,846|||327,251|
|||||||||
|||||856,963|||1,284,267|



- 23 - 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 MARCH 2025**_ 

## **15 Deferred income** 

|||**2025**||**2024**||
|---|---|---|---|---|---|
|||**£**||**£**||
|Other deferred income||13,324||248,293||
|Deferred income is included in the fnancial statements as follows:||||||
|||**2025**||**2024**||
|||**£**||**£**||
|Total deferred income at 1 April 2024||248,293||18,718||
|Amounts received in year||13,324||248,293||
|Amounts credited to statement of fnancial ac$vi$es|(248,293)|||(18,718)||
|||||||
|Total deferred income at 31 March 2025||13,324||248,293||



Included in deferred income are receipts which relate to a future accoun$ng period and will be recognised to match the delivery of the service. 

|**16**|**Provisions for liabili,es**||**2025**|**2024**|
|---|---|---|---|---|
|||**Notes**|**£**|**£**|
||Re$rement beneft obliga$ons|**17**|12,332|5,553|



## **17** 

## 

The charity operates a defined contribu$on pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund. 

The charge to the statement of financial ac$vi$es in respect of defined contribu$on schemes was £183,914 (2024 ­ £183,261). 

- 24 - 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 MARCH 2025**_ 

## **17** 

## **(Con,nued)** 

## 

The company par�cipates in the scheme, a mul�­employer scheme which provides benefits to some 638 non­ associated par�cipa�ng employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient informa�on to enable it to account for the scheme as a defined benefitscheme. Therefore it accounts for the scheme as a defined contribu�on scheme. 

The scheme is subject to the funding legisla�on outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Repor�ng Council, set out the framework for funding defined benefit occupa�onal pension schemes in the UK. 

The scheme is classified as a 'last­man standing arrangement'. Therefore the company is poten�ally liable for other par�cipa�ng employers' obliga�ons if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Par�cipa�ng employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme. 

A full actuarial valua�on for the scheme was carried out at 30 September 2023. This valua�on showed assets of £514.9m, liabili�es of £531.0m and a deficit of £16.1m. To eliminate this funding shor6all, the Trustee has asked the par�cipa�ng employers to pay addi�onal contribu�ons to the scheme as follows: 

## 

From 1 April 2025 to 31 March 2028: £2,100,000 per annum (payable monthly) 

Unless a concession has been agreed with the Trustee the term to 31 March 2028 applies. 

Note that the scheme’s previous valua�on was carried out with an effec�ve date of 30 September 2020. This valua�on showed assets of £800.3m, liabili�es of £831.9m and a deficit of £31.6m. To eliminate this funding shor6all, the Trustee asked the par�cipa�ng employers to pay addi�onal contribu�ons to the scheme as follows: 

## 

From 1 April 2022 to 31 January 2025: £3,312,000 per annum (payable monthly) 

The recovery plan contribu�ons are allocated to each par�cipa�ng employer in line with their es�mated share of the Series 1 and Series 2 scheme liabili�es. 

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obliga�on. The amount recognised is the net present value of the deficit reduc�on contribu�ons payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost. 

## **Present values of provision** 

|**Present values of provision**||||
|---|---|---|---|
||**2025**|**2024**|**2023**|
||**£**|**£**|**£**|
|Present values of provision|12,332|5,553|11,888|



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## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 MARCH 2025**_ 

## **(Con�nued)** 

|||||||
|---|---|---|---|---|---|
|**17**|**Re�rement beneft schemes**|||**(Con**|**�nued)**|
||**Reconcilia�on of opening and closing provisions**|||||
|||**2025**|||**2024**|
|||**£**|||**£**|
||At 1 April 2024|5,553|||11,888|
||Unwinding of the discount factor (interest expense)|146|||455|
||Defcit contribu$on paid|(5,662)|||(6,794)|
||Remeasurements ­ impact of any change in assump$ons|78|||(4)|
||Remeasurements ­ amendments to the contribu$on schedule|12,217|||­|
|||||||
||At 31 March 2024|12,332|||5,553|
||**Income and expenditure account**|||||
|||**2025**|||**2024**|
|||**£**|||**£**|
||Interest expense|146|||455|
||Remeasurements ­ impact of any change in assump$ons|78|||4|
||Remeasurements ­ amendments to the contribu$on schedule|12,217|||­|
|||||||
||Costs recoginised in the income and expenditure account|12,441|||459|
||**Assump�ons**|||||
|||**2025**|||**2024**|
|||**%**|||**%**|
||Rate of discount ­ % per annum|4.84|||5.31|



The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contribu$ons due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contribu$ons. 

## **Other informa�on** 

The following schedule details the deficit contribu$ons agreed between the company and the scheme at the end of each period 

|||**2025**|**2024**|
|---|---|---|---|
|||**£**|**£**|
|Year|1|4,400|5,662|
|Year|2|4,400|­|
|Year|3|4,400|­|



The company must recognise a liability measured as the present value of the contribu$ons payable that arise from the deficit recovery agreement and the resul$ng expense in the income and expenditure account i.e. the unwinding of the discount rate as a finance cost in the period in which it arises. 

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## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 MARCH 2025**_ 

## **18 Opera�ng lease commitments** 

At the repor�ng end date the charity had outstanding commitments for future minimum lease payments under non­ cancellable opera�ng leases, which fall due as follows: 

||**2025**|**2024**|
|---|---|---|
||**£**|**£**|
|Within one year|857|3,141|
|Between two and fve years|6,857|­|
|In over fve years|857|­|
||||
||8,571|3,141|



## **19 Unrestricted funds** 

The unrestricted funds of the charity comprise the unexpended balances of dona�ons and grants which are not subject to specific condi�ons by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes. 

||**At 1 April 2024**|**At 1 April 2024**||**Income**|**Expenditure**|**Expenditure**||**TransfersGains and losses**|**TransfersGains and losses**|**TransfersGains and losses**||**At 31 March**|**At 31 March**|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
||||||||||||||**2025**|
|||**£**||**£**||**£**||**£**||**£**|||**£**|
|General funds||1,761,072||11,967,885|(12,062,614)|||­||(12,217)|||1,654,126|
|**Previous year:**|**At 1 April 2023**|||**Income**|**Expenditure**|||**TransfersGains and losses**||||**At 31 March**||
||||||||||||||**2024**|
|||||**Restated**|||||||||**Restated**|
|||**£**||**£**||**£**||**£**||**£**|||**£**|
|Future service||||||||||||||
|development||55,155||­||­||(55,155)||­|||­|
|General funds||1,936,579||12,198,442|(12,429,104)|||55,155||­|||1,761,072|
|||||||||||||||
|||1,991,734||12,198,442|(12,429,104)|||­||­|||1,761,072|



During a prior year the charity received a Just Giving dona�on of £20,699 and a legacy of £34,456 which have been earmarked for future service development. It was discussed last year and the decision was made that these projects will no longer be going ahead and therefore the funds have been released back to general unrestricted funds. 

- 27 - 



**NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE** 

## _**FOR THE YEAR ENDED 31 MARCH 2025**_ 

## **20 Related party transac$ons** 

Remunera�on of key management personnel 

The remunera�on of key management personnel was as follows: 

||**2025**|**2024**|
|---|---|---|
||**£**|**£**|
|Aggregate compensa�on|368,195|355,618|



During the year an amount of £3,000 (2024: £9,000) was paid to the partner of a member of key management for ad hoc administra�on work. The amounts paid were considered to be equal to the market rate for the services provided. 

There were no other related party transac�ons in the year. 

## **21 Cash (absorbed by)/generated from opera$ons** 

||||
|---|---|---|
|**Cash (absorbed by)/generated from opera$ons**|**2025**|**2024**|
||**£**|**£**|
||**as**|**restated**|
|Defcit for the year|(94,729)<br>(230,662)||
|**Adjustments for:**|||
|Deprecia�on and impairment of tangible fxed assets|120,559|117,146|
|Diference between pension charge and cash contribu�ons|(12,217)|­|
|**Movements in working capital:**|||
|Decrease in debtors|196,077|393,425|
|(Decrease)/increase in creditors|(192,335)|258,051|
|(Decrease)/increase in provisions|6,779|(6,334)|
|(Decrease)/increase in deferred income|(234,969)|10,916|
||||
|**Cash (absorbed by)/generated from opera$ons**|(210,835)|542,542|



**22 Company limited by guarantee** 

Imagine independence is incorporated under the Companies Act as a company limited by guarantee. The liability of the members is limited to £1. 

- 28 - 



## **IMAGINE INDEPENDENCE COMPANY LIMITED BY GUARANTEE NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)** 

## _**FOR THE YEAR ENDED 31 MARCH 2025**_ 

## **23 Prior period adjustment** 

## **Changes to the balance sheet** 

|**Changes to the balance sheet**|||||||||
|---|---|---|---|---|---|---|---|---|
||||**At 31**||**March 2024**||||
|||**As previously**|||**Adjustment**||**As restated**||
||||**reported**||||||
||||**£**||**£**||**£**||
|**Current assets**|||||||||
|Debtors due within one year|||1,600,316||(140,653)||1,459,663||
|**Creditors due within one year**|||||||||
|Other creditors|||(861,337)||(15,190)||(876,527)||
|Net assets|||1,916,915||(155,843)||1,761,072||
|Capital funds|||||||||
|Income funds|||||||||
|Unrestricted funds|||1,916,915||(155,843)||1,761,072||
||||||||||
||**Total equity**||1,916,915||(155,843)||1,761,072||
|**Changes to the proft and loss account**|||||||||
||||**Period ended 31 March 2024**||||||
|||**As previously**|||**Adjustment**||**As restated**||
||||**reported**||||||
||||**£**||**£**||**£**||
|Charitable ac(vi(es ­ Income|||12,304,984||(155,843)||12,149,141||
||||||||||
|Net movement in funds|||(74,819)||(155,843)||(230,662)||



During the year, the charity iden(fied that errors has arisen in the recogni(on of housing income in previous years and this resulted in a material overstatement of the closing housing income receivable balance. 

In accordance with FRS102 SORP the compara(ve figures have been restated to correct this material prior year error. The effect of the restatement on the charity’s financial statements is set out in the above table. 

- 29 -