2025-03-31-accounts

katharine house . hospice 00 ombracing lrfe and living "This year saw Katharine House celebrate 35 years of serving Stafford and surrounding areas, an anniversary we are all rightly proud of." OUR DIRECTORS, AND TRUSTEES, REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 A Company Limited by Guarantee not having share capital Registered company number 02700516 (England and Wales) Registered charity number 1011712 •AEGKIIEY* 0211212025 COMPANIES HOUSE A04

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Contents Chairman's Statement Vision Mission Divin dream come true Tosh's Sto Directors, and Trustees, Annual Re ort 10 Introducto Information Strate icRe ort 13 Additional Disclosures 24 Independent Auditor's Report 31 Consolidated Statement of Financial Activities 35 Consolidated Balance Sheet 36 Compan Balance Sheet 37 Consolidated Statement of Cash Flow 38 Notes to the Consolidated Statement of Cash Flow 39 Notes to the Financial Statements Katharine Hous• Hospire annualreport& consol￿tedfj￿￿Ki•1jt4t•mffltsyearendM•trh 2025 Page 2

Chairman's Statement This year saw Katharine House celebrate 35 years of serving Stafford and surrounding areas, an anniversary we are all rightly proud of and I thank all those staff and volunteers past and present, and our supporters, who have made those 35 years so successful. Our confidence in what we can offer the community has been recognised in the adoption of a new Care Strategy which looks ahead to increased services both within the In Patient Unit, in outpatients, family support and in our community. In what has been a very challenging year for the hospice sector and where news of hospices in crisis has hit national headlines, we at Katharine House have continued to provide invaluable support to the community. We have helped 1.833 people this year and increased the availability of our care offering. The development of the 2417 helpline run by our neighbouring hospices and supported by Katharine House has been recognised and the local NHS will now fund this vital service for Staffordshire. With the local Integrated Care Board (ICB) beginning to show some commitment to palliative care it's concerning that there are going to be significant changes in the coming year as NHS England is abolished and a significant reduction of funding to run ICBS is expected which has led to uncertainty and lack of clarity. We hope this will be resolved swiftly. We should however recognise the difficult economic situation all hospices work within. Through excellent financial management and a tremendous amount of continued support from our community we have so far been able to avoid cuts to our services, and with continued support hope to continue to develop our services in response to the changing needs of our patients in the coming years. Before Christmas we received the news of additional Government fvnding, while very welcome the conditions of the grant mean it cannot cover our running costs, for this we depend very much on both the local NHS boards and the charitable contribution of our community. This year has also seen the parliamentary debate on the Assisted Dying Bill. Ivhilst it is not yet clear how this piece of legislation will impact the hospice movement, we are pro actively engaging with our stakeholders to ensure preparedness whilst reinforcing the importance of effective palliative care. Page 3

This year saw the first real return to normal after the pandemic when our fundraising team working alongside our Marketing and Communications (Marcomms) team worked tirelessly to put on events again. supported fundraisers, and publicised the work of the Hospice. Of note was the Vlalk to Remember at Shugborough Hall in October 2024, in beautiful weather over 550 adults and children walked around the Nakn'onal Trust grounds remembering loved ones and raising almost £20.000 for the Hospice. It was also great to see our own staff getting involved in fundraising by undertaking their own Yorkshire 3 Peaks Walk in June. In March 2025 we were proud to be represented at the national charity video awards ceremony where our promotional video "Alison's Story. was in the finals. While we didn't win just to be there amongst all the massive national charities is a testament lo the fantastic team behind our publicity. We have also started to put more resource into ensuring we benefit where we can from gifts in wills. and we participated in the Hospice UK TV advertising campaign earlier in the year. It is clear, like many charities, income from wills is essential in keeping our care services going. I have always been amazed at the fantastic work our volunteers continue to do for the Hospice., without this support there is no doubt we couldn't run the seryices we do. In June we held our annual volunteers evening where I was proud to present certificates of service lo many volunteers but of note must be recognition of the 30 years voluntary service given by Linda Bonney. We were also honoured to receive invites to the Royal Carol Service at WestminsterAbbey,' where Norma O'Neill and Steve Coxon trNo volunteers with a combined 32 years of service, represented the Hospice. Our retail operalions remain a crucial element of the income generation effort. The big event Ihis year was the opening of the Stafford Superstore on St Albans Road Stafford. During the year we were also forced to close our store at SCC recycling centre Cannock following decisions made by Staffordshire County Council. We are continuously looking to open new retail premises where conditions allow. Trading conditions remain difficult with increases in operational costs making the charity retail sector overall very challenging. Donations and sales are what drives the retail operation. and this depends totally on the local community supporting the cause and wanting to shop with us. It is with sadness that I recognise the passing of one of our retail colleagues Malcolm "Mac" Rollins, who for 9 years managed our retail operation at SCC recycling Centre Cannock. he will be missed, K•tharln• House Hospk• Ch•lmMn ise•tementywrendAlvth 2025 Page 4

As a Board of Trustees we spent a long time earlier in the year learning more about Ihe NHS and hospice funding as well as looking at data to help us fully understand the prlorities for our new care strategy. Thanks to Dave Fletcher and the care team for their excellent work in allowing us to have such knowledgeable discussions on this crucial development in our future. It was soon after this that both Dave our Director of Care and Carina Lowe our Hospice Lead Nurse took extended personal leave (congratulations to both on their respective new family additions); this left a potential gap in the leadership of our care services, but the team stepped up and ensured a continuity of services. This was a fantastic effort by everyone involved, especially the senior clinicians, staff nurses on IPU, and our medical team. I thank you for your efforts that went above and beyond. The Board of Trustees ¢ontinues to evolve with trustees leaving, including Alison Cape who left after setving her 10 year temi as a most supportive Irustee and James Harley whose excellent contribution to the Hospice during his short time on the Board was really appreciated. We have been joined by Amanda Brooke and Helen Reeves who will bring a whole new and valuable set of skills and experience to the Board. I look forward to working with the Board as we move through the challenges the future holds. As I complete my third year as chair I continue to be amazed at the dedication of the siaff and volunteers that ensure the outstanding quality of care that is offered to our community, One thing that slands out is the culture within Ihe organisation, there is a definite feeling of affection for the charity and all it stands for; people enjoy working here and of that l am immensely proud. However, lo continue we still rely on the massive support from the community be that in the form of time. donations, buying from the shops or just spreading the word. so thank you for making it all possible. Peter Catchpole Chairman K•th•tine House Ilospke ChalnTrJn ss¢at•meneytsr•ndMwrh 2025 Page 5

kOthar￿e hospic.e iIL . Jf-~.F Vosoon People live welt and die with dignity in.a place of their choice. (v

35 knthorne house hospice Our Mission We help locat adults with complex, progressive illnesses from diagnosis to the end of life through free, high quality, specialist. palliative care, advice and, guidance and we support those close to them.

J. j.Four: years:ago,'bank,:manager"Victoria l Einery',Mias diagnosed with";Parkirison's . Sliè-'n£)iv,'réiiés"on.carérs.: .4* IWhil'e'a'pa-tient.wl..th.us,"48-.year.-old %Victoria told us'about':h'er.'l<>iie.:of scuba. tdivirig which..led'to our, nurses making Iher.-'dre'ainibecome a.reality,"diving.witli Stafford Sub-Aqua Club..and her." rt)'rother.for..the.f.irst".time -at, Stafford" "Léisure,.,Centtre," It W.as_s.uch:.a'.vrf.ondèrf.ul.:surFirise but';1 wastn'er.vous'bécause it's,been",years': since.'I'.ve'beeri diving'because.of,:-' j,mY,condition:' Whenil.:was rèterréd:t'o,Katharine'Housé pxceedè-d all 'expe'ctations-;, .. will..always':be' grateful.'Whén-:.11. was.:un-der,the.. ,water,,.' Ii,,didn,'t.'fee.lY ill.::,My.,le-gs: ,worked';'my:iarms worked,::my.' ,breathing¢' e ,. HosPiC8 it.'was.".suggested'i,stayed:witli' '.themifor.'a couple.:,of.weeks.to manage. imY,':5ymptomssand help'me..come".to an acceptarice'of ,iriy illness: l.-'didn't..wanti'to'.go b"ecause,of the [perception..of 'the h05pice',I'had difficult. conversations'and,gotiupset.. but.:the iterm;things..We éven had a disco,in'rriy' iroorri with-;a:.disco ball, "'the.sight of 5nurses,.dancing to.'ABBA at.the:bottom lof,.your,.'bed.w.outd cheer..any.one,up!:' to't'ally:aw.ésoin'e:. ur.,:.care:

4¢ Joseph (Toshg Kolly Our Lymphoederna speclallsts, eare Is helplng Tosh 'get h5s Ilfe Ibadk, and Spend quallty tSrn8 wlth hls famlly. Darts enthusiast and ex RAF corporal, To5h wa5 diagnosed with ca;ncer on 2022. Hav￿Th9 dodged an Exocet mlsslle durlng thè Falklands War, he was shocked to learn of his dlagnosls s•ve,ral decades later. TH EIPAPY 4 WELLDEING Togh lost 24#9 durl,ng hls Illness and for a, long tlme was only able to consume meal replacement drinks with a feeding tube. He was referred to us for laser treatment. "It seemed very scary when the hospice was eirst mentioned. It really fthrew me. I di,dn't realise it wyas a health and vdellbeing centre thaft could help me feel better." We have given Tosh laser treatment, massage tihe,rapy, a mlnl-massage tool and speclalTst neclk garment whlch have helped hls recovery and enabled hirn to start eating again. As a darts lover who has played against several ¢h•mpinonship players, Tosh would love to get bad< Into the sport 'ryh• tr•atm•rt had at Katharln• House Hospko Is helplng me get my Ilfe back. Vrn hoplng to get back to playlng darts noxt y¢ar.° ¢aF@

TRUSTEES. AND DIRECTORS. ANNUAL REPORT 2025 THE YEAR IN SUMMARY This year has been extremely positive: / We have delivered more care although to slightly fewer patients and families at 1,833- 48 fewer than last year's high-water mark of 1,881. Inpatient admissions rose 20¥0 to 200, the highest levels for a decade. rf Community services have increased significantly with respite and hospice at home hours up 580A to 10,135. O The second year of the re-launched therapy and wellbeing services has seen very significant increases in activity with attendances and telephone support up 25 % to 6,092 contacts. rf We have, with Douglas Macmillan Hospice and Compton Care, secured funding from the Integrated Care Board for the 24/7 advice line launched in January 2024. O Vacancy levels have fallen to under 5% and there is an improved retention of staff. O We have seen a further year of high income from gifts in wills. O There has been a financial surplus of £553k. Retail performance has not generated as much surplus, due mainly to increased wage costs resulting from Government minimum wage policies. Fundraising has also seen a reduction in both gross and net revenues. As we leave the last financial year, the Trustees have decided to reinvest the surplus into maintaining our care services and making our infrastructure more robust, despite an expected deficit for the year. Key investments include: O Increasing medical and counselling support to patients. O Developing the people function within the Hospice. O In 2025/26 we expect to carry out a number of capital works using the NHS England capital grant. In 2026/27 we expect to make a heavy investment in refurbishing the Inpatient Unit. We look forward to 2025126 being as successful as 2024/25. Katharine House Hosplce T•ustees'andDirert•s'annuair•portyearMdMar¢h 2025 Page 10

INTRODUCTORY INFORMATION Introduction The directors of the charitable company Katharine House Hospice (the Charity) are its Trustees for the purpose of charity law and are pleased to present their annual report together with the consolidated financial statements of the Charity and its subsidiaries for the year ended 31 March 2025. which are also prepared to meet the requirements for directors, report and accounts for Companies Act purposes. The company meets the requirements to prepare a 'strategic report,, and this is included within the annual report comprising sections four to seven inclusive. How we make a difference 2.1 Legal Purpose Our Articles set out the objects for the Charity as being to promote the rellef of sickne$5 and suffering, in particular: by the establishment of day or domiciliary care and to establish, maintain and manage a Hospice Hospital or Residential Home,. b) To promote the teaching or training of doctors, nurses, and other persons; To provide counselling or spiritual help. 2.2 Our Mission Our mission is that: -we help local adults wlth complex, pmgresslve illnesses from diagnosls to the end of life through free. high quality. specialistpalliative care, advice andguidance and we support those close to them. - 2.3 Our Services In fulfilling its purpose Katharine House Hospice focuses on the provision of specialist palliative and end of life care. These services, described below, are free of charge and support people and their families affected by any progressive, life-limiting conditions. Community Services Services provided in the community include: a specialist nursing service providing advice to healthcare professionals in primary care; a healthcare assistant led, rapid response, hospice at home service providing hands on care and support to patients and families: a respite sitting service to support carers: and supporting a 24/7 advice line. Wellbeing Pmgrammes Six-week programmes of advice. education, and support for patients, delivered one day a week The programme is designed for patients earlier in the progression of their disease to learn about different aspects of their condition and to improve self-management, for example breathlessness, fatigue. or anxiety. K•thann• House Howce annualreport& cons0lidatedfinaMalst•tementsyearendMareh2025 Page 11

Inpatient Care 24-hour specialist inpatient care providing symptom control, terminal care or respite care is provided at the Hospice for up to eight patients, while the Hospice's consultant medical team support 10 dedicated palliative care beds at County Hospital in Stafford. Lymphoedema Services A specialist lymphoedema service provided to outpatients. At present this is a mixture.of a telephone or teleconferencing service and face to face assessments and treatments. Outpatient Sernices In June 2023 we launched outpatient provision, enabling patients and families to access a wide range of services including.. medical and specialist nursing advice. occupational and physio therapy, counselling, spiritual support and complementary therapy. Charitable Income Generation To ensure our services can be delivered at no charge the Charity carries out income generation activities to raise funds to support the work of the Charity, most notably fundraising, lottery, and retailing. 3.1 Approach to Fundraising The Charity's fundraising activities are carried out by members of our community, volunteers, and paid members of our staff. Fundraising activities are monitored by our Income Generation Committee, including monitoring our compliance with the requirements of the Fundraising Regulator. 3. 1. l Fundralslng Regulator All charities with fundraising costs of £100,000 or more have been asked to pay an annual voluntary contribution to fund the Fundraising Regulator. Trustees are unable to ascertain the value of this expenditure to this organisation and have chosen not to do this. We receive a weekly e-mail advising us of requests under the Fundraising Preference Service to no longer contact donors. In the last year we have received no such requests {2024: 0). 3. 1.2 Fundrais/ng Standards The Charity conducts its fundraising in accordance with the best practice guidelines available, for example from the Fundraising Regulator's Codes of Practice and guidance from the Institute of Fundraising. We take a relationship-based approach to our fundraising and consider the needs of our supporters (and our beneficiaries) when undertaking all of our fundraising activities. Katharine House Hospi¢e annu4lreport & consol￿a¢¢d.ftnanC1•I.sI￿t￿￿ntsye&rendm*rCh202S Page 12

1. 1.3 Fundraising Complaints Fundraising complaints are considered by tmo Trustee Committees. In 2024/25 in relation to our fundraising activities the Charity received 3 general complaints (2024: 10 complaints), of which none related to the lottery (2024: 2). 2 were upheld in full, 1 was partially upheld, no complaints were not upheld and none had no determination (2024: 2 15 / 2 11). There were a number of upset donors who turned up for an outdoor Light up Life event that had been cancelled due to storm Darragh. None of the complaints related to breaches of the Fundraising Code of Conduct. All were followed up swiftly and concluded in accordance with the Charity's complaints policy.
2. 1.4 Vulnerable People y worktng within the Fundraising Regulator's Codes of Practice and maintaining a relationship-based approach to our fundraising activities we endeavour to protect vulnerable members of our community. We have a policy in place regarding liaison with supporters who may be vulnerable.
3. 1.5 Soclety Lottery We have now outsourced the lottery operation to Local Hospice Lottery, which provides significant economies of scale allowing a much higher proportion of each player's contribution to come to support the work of the Charity. Local Hospice Lottery provide monthly reports on performance in relation to membership, attrition rates, and financial performance. STRATEGIC REPORT Key Strategies We are in the third year of the Trustees 5 year corporate strategy. The key themes within this strategy are set out below with progress made highlighted. 4.1 Care Development of outpatient clinics for lymphoedema, consultations with doctors and clinical nurse specialists, occupational therapy. physiotherapy. counselling, complementary therapy. and wellbeing services. Completed with a￿￿tyleVelS in¢reaslng slgnlficantly inyear 3 Seven day a week access to a telephone helpline for patients, families, and healthcare professionals. Implem•nted Guidance and educational resources for patients and families. Natpmgressed. but intend to pursue Maintain an open and collegiate approach to collaboration and integration with other providers in the new Integrated Care Board. Commenced the 24/7adwce line with Compton Care andDou9las Macmlllan Hospice Kathwyne House Hospice ami4Mlrep•rt& ¢onsollda¢edfinan<lalstatementsy•arendMwch 2025 Page 13

Explore with general practitioners how we can better collaborate to meet the needs of patients. Commen¢edcontart with some 6Ppra¢tt¢es-progress Is difficult Explore with other providers how we could share clinical resources within teams. Limitedprogress with otherhospi¢es Engage in the development of integrated care records for people at end of life. Commen¢edand svork ongoing, greaterprogress is experted with the implementafron of a new cl1nica1s￿ern at the Hosplce In 2025 Work with other providers to enable rapid and effective transitions for patients into and out of our services. ￿mItedPrn9ress Target support for patients who deteriorate rapidly by supporting improved forward planning for patients at the end of life. Engaging on work within th• Integrated care system. During the year there was a comprehensive review of the care strategy, and the Board of Trustees approved a new five-year strategy. 4.2 Revenue Generation Continue to focus on medium to large retail stores, acquiring new sites where we have closed smaller units. One newshop op•n•d Develop collaboration on retailing with other charities. Noprogress butcontinue to explor• In fundraising: o Adopt a data driven approach to decision making. Significantpmgress o Improve nurturing activities for all donors. Commenc•d o Develop an effective communications strategy for supporters, work has commenced on internalsystems o Improve our website's content and functionality. A comprehenslve revlew of our website functionality has cOMn￿n(ed Improve our social media content. There has been a considerable Improvement In our on-Ilnepresenc• Emphasise securing gifts in wills and regular giving. Commencedandhave appointeda dedicatedpetson to supportgift In wills. 4.3 Support Services 4.3. 1 People Develop an engaged workforce that is proud to work for Katharine House. Considerable work has been undertaken. a recentstaffsuTheygained considerable engagemen¢ althou9h identifieda si9nificant culturalissue within retail Disperse leadership within the organisation. Commenced Move the leadership of the organisation onto a project-based approach. Jmplementedand the appmach was review•dandrevisedlnyear3 Simplify the processes for managing people. Commenced. expected topmgress in year 3 with th• implementatlon ofa new MR system Katharine House 11ospic• annwlryt& c0nsolhlatedfina￿1alstat¢￿￿tsy¢4rend￿I0fCh2O2s Page 74

Review all HR practices to make them simpler. easier to follow. and more accessible to managers and staff. Comnminced wlth ongoing workinyear3 Develop a plan that focusses on equality, diversity and inclusivity. Nopmgress expertedunfrlyear S Enhance our use of volunteers. we have added close to 100 hours within the retail operation. but a new approach needs to be developed, experted2026. 4.3.2 Marketing and Communications Change our tone of voice as an organisation, becoming bold and emotive: looking to inspire and inform our audiences by telling positive stories about our work. Completedandnow ongoing Be explicit about the symbiosis between our care services and our income generation. Completedandnow ongoing Change perceptions about hospice care. Commencedandongoing Ensure marketing and communications work is strategic and effective by implementing research and evaluation of campaigns and marketing activity. Significant hudway has been made inyear3 Develop a one hospice approach. Sl9niflcantprogress Work closely with other teams to ensure that stakeholders experience one hospice communicating with them. Slgnlllcantpmgress Review our brand identity, ensuring it is in line with how we want our audiences to perceive us and ensure we have a clear, bold visual identity. Complet•d Build a more robust marketing & communications team. Completed. 4.3.3 1nformat/on fechnology Adopt a 'Think cloud first" approach. More elements are moving to the doud. The new clinicalandHR systems will be ¢loud-based Replace our clinical and HR systems. ainicalsystem andHR systems acquired. and implementatlon has commenced Replace the telephone system. Completed Introduce a system to help standardise our procedures, increasing compliance, reducing paperwork, and providing easier reporting. System acquiredandfirst ten nwdules are up andrnnnlng. Achievements and Performance 5.1 Summary of Main Achievements The Hospice has strengthened its financial position, continued to develop its core seNices and invested in its income generation areas, in particular opening the larger, renovated Superstore in Stafford. Kathanne House Ilospke anrnMlreport& consolidatedfinancMlstat•mentsyearendAl4r¢h2025 Page 75

5.2 Progress with 2024/25 Objectives The principal objectives for 2024/25 and progress against these are set out earlier and below. 5.2. 1 Extend and develop our outpatlents theraples and wellbeing services Activity has risen exponentially in the year to March 2025. Outpatient attendances rose by 163% to 844, although this was offset by a fall in home visits of 40% to 211,. telephone calls to patients rose by 23% to 5,248; new initiatives for social activities were introduced, including Tai Chi and Relaxation classes.. wellbeing attendances increased 8% to 188, although the numbers attending Fatigue. Anxiety, and Breathlessness sessions fell by 32¥0 to 76,. a new carers group was introduced seeing 67 carers; and the complementary therapies team saw 670 patients, an increase of 819A. 5.2.2 Increase pmvision of community seThices Activity has increased in the hospice at home services with 10,135 hours of care being provided, up 3,718 hours (58%) on 2023/24. The palliative care nurse specialists carried out 25 fewer home visits (2%) and 173 fewer telephone calls (40ts1. but more time was needed for the team to support the advice line. 5.2.3 Develop relationships within primary care It has proved hard to develop engagement within primary care, but we have built relationships with several GP practices to trial a scheme for palliative patients to be contacted by the Hospice (with an option for patients to opt out) but this has not yet translated into additional referrals. We also engaged with practices over the development of the ICB pal liative care strategy, 5.2.4 Review and revise our care strategy There was an extensive review of our care strategy, resulting in a new 5 year strategy with 28 projects during this time to increase service delivery, improve quality, and strengthen governance. 5.2.5 Develop proposals for renovation of the inpatient unit The board has approved an investment of up to £1.5m for the refurbishment of the inpatient unit. This will create 10 single bedrooms with ensuites and the enhancement of the working environment on the unit. Planning applications and tenders will be completed in 2025126. with work expected to commence in spring 2026. 5.2.6 Secure at least one additionalpremises for retail A site in Rugeley was secured and has opened in April 2025. . Kath•nne House Hosplc• annualreport& conso11dat￿finan¢MJ$ta¢é￿1¢ntsyeare￿d￿I•rch1e2S Page 16

5.2.7 Commence the implementation ofa new c/ini¢alsystem The Charity has acquired Systmone to replace the old clinical system which will no longer be GDPR compliant. The system has been launched in June 2025, and work has been delivered to design and structure the new system and to commence training of staff. 5.2.8 Implement a newsystem for managing incidents An incident management system was launched in June 2024. 5.2.9 Implement a new system for managing risks The main system was launched in quarter 4 for the management of all risk assessments, excepting those relating to individual people. A separate system was launched in April 2025 to handle these more sensitive risks, with more restricted access to each risk assessment. 5.3 How We Measured Performance and Success The main measurements for success relate to increasing our provision of services section 5.4. Additional items routinely reported to Trustees include: see Qualitative aspects of care services such as patient falls, medication errors, pressure ulcers Compliance with Care Quality Commission standards Health and safety data on accidents and incidents Data breaches Complaints and outcome of complaints Staffing levels against establishment Staff absence rates Staff turnover Compliance with Fundraising Regulator guidance Financial information compares each department's performance against budget, in particular retail income and surplus, fundraising surplus, lottery surplus, statutory sector income, and net expenditure on care, support seNices and overheads. 5.4 2024/25 Charitable Activities During 2024/25 the number of individual people we supported decreased slightly from 1,881 to 1,833. A summary of some of the key metrics for our main seNices is set out in the following table with some patients accessing seprfices more than once and accessing multiple services. Katharfne House Hwpi(e annualreport& consolidat￿fln4ffO*l$ta¢èmentsyeare￿dM￿r¢h ZQZS Page 17

Year ended 2025 2024 2023 2022 2021 Inpatient bed days Inpatient admissions 2,247 2,356 2,117 2,214 1,717 200 167 147 125 125 Outpatient attendances / Home visits 1,055 672 163 Closed Closed Specialist nurse visits 1,302 1,327 1,283 1,286 486 Community care contacts 5,567 5,374 5.579 5,998 6,376 Lymphoedema treatments Telephone/video calls 1,920 1,853 1.667 1,404 514 17,668 15,333 13.123 12,964 15,992 Counselling sessions Carer / social support 1,383 1,364 902 1,380 1,109 355 172 23 5.5 Summary of Main Operatlonal Challenges Katharine House Hospice's patients live within the boundaries of the Staffordshire and Stoke-on-Trent Integrated Care Board (the ICB). Unfortunately, this ICB has very significant financial issues. Last year saw the first increase in our funding for a decade and at 1.7% this was wholly insufficient considering the 8.2% increase in our payroll costs. Additional one-off payments have supported the Hospice through this period and especially the Covid related grants received from NHS England. However, our expectations that a single NHS commissioner would see an improvement in the underlying funding arrangements seems unlikely to happen. There is an expectation that we will move from a grant to contract, but this has been a slow process. Public misconceptions and fear about death and dying, the nature of our seNices, and the work of hospices continue to create a barrier to patients accessing our services. It is unfortunate that too many families wish they had accessed our services earlier. Continual changes and increasing requirements on a range of regulatory and compliance issues has meant senior management time is diverted to addressing legal requirements rather than improving our performance. The latest changes incorporate a raft of new legal requirements under employment law, and a new regime for providers registered with the Care Quality Commission. Financial pressures continue to be created through government policies on minimum wage and this year the colossal increase in Employers, National Insurance contributions. which represent an unfunded increase in our costs in excess of £0.25 million. We also experience retail landlords having unreasonable expectations on rents and a lack of suitably sized retail spaces to rent. Kathathe Hous• Ilospi¢eannualreport& ¢•nsolld•tsdfinan¢ialstatenwntsyearffidMar¢h2025 Page 18

5.6 Summary of Key Objectives for 2025/26 The key objectives for the 202S/26 year are: 1. Complete the implementation of the new clinical system. 2. Procure and implement a new Human Resource system. 3. Identify another retail site. 4. Implement a telephony support programme for patients. S. Commence an initiative to improve identifying and achieving patients. preferred place of care and death. 6. Continue preparatory work to support the planning and delivery of the Inpatient Unit refurbishment. 7. Expend the NHS England grant to improve IT support for care services, including an electronic prescribing module, improving physical access to our services, and supporting environmental initiatives. Financial review 6.1 Factors Affecting Financial Performance 6. 1. l Review of factors afferting performance The major factors within the control of the Charity are managed effectively, enabling the Trustees. to move the Charity forward. There are sound systems for reviewing the quality and safety of patient care, financial performance, staff management and staff representation, staff and volunteer recruitment and induction, the protection and appropriate use of personal data and the management of health and safety. There are a wide range of factors lying outside the direct control of the Charity. 6. 1.2 The relationship with the Integrated Care Board MCB) £1.53m {26.8%) of the £5.7m needed to fund and operate the Charity comes from the NHS. The Trustees are disappointed that there has been no progress on palliative and end of life care when it appeared initially to be a high priority within the newly formed Staffordshire and Stoke on Trent IC8. The offer of a 2.15% uplift for 2025/26 is wholly inadequate. 6. 1.3 Cost pressures Wage inflation remains our biggest expenditure itern, with substantial increases in both April 2023 and April 2024. We continue to see unavoidable costs imposed on the Charity. Our costs are systematically driven up by the need to comply with legislative requirements with the major cost burden coming from increases to the National Minimum Wage. In April 2023 the minimum wage increased by 9.34% and the cost of a full-time employee by 10.2%. An increase in the KatharineHowe Hospiceannualrnport &cons01idatedfinancwlslalementsyearendMarch2025 Page 19

minimum wage of 9.7% in 2024 has an increasingly significant impact on our payroll costs. National Minimum Wage increases and Employers, National Insurance Contributions will result in an 11.30A increase in the costs of employment for those at the lowest end of our pay scales and 5.3% for the highest paid from April 2025. 6. 1.4 Recruitment and retention Recruitment and retention have improved significantly in the last year, with vacancies falling to 5% at 31 March 2025. 6. 1.5 Competltlon The external conditions for all income generation have become increasingly competitive, particularly in retail where more charity shops are competing for donations and customers, while commercial companies will pay former potential donors for goods they might otherwise have donated or persuade them to sell their items on-line. National charities are adopting TV advertising as a means to attract increased gifts in wills. As a local hospice it is beyond our means to adopt this approach, but we have recently joined with other hospices through Hospice UK to develop a nationwide TV advertising campaign, which launched in February 2025. 6. 1.6 Supplier issues The Hospice has experienced unusual issues with the reliability of certain suppliers in particular building contractors where there is a high demand for their services and rapid increases in their material costs. This is making it difficult to get quotations that have any longevity to enable comparisons and ensure best value for money. 6. 1. 7 Regulatory burden The regulatory burdens on the Charity are extensive, burdensome, and costly, both financially and in staff time. Compliance with the Office for National Statistics requirements to provide data, anti-money laundering requirements, HMRC requirements on making tax digital, a new provider portal at the Care Quality Commission are a few examples of the regulatory burdens we have faced. 6.2 Charltable Income Generation 6.2. 1 Performance andpn?portion of income ra￿edSPent on raising funds In addition to raising funds. fundraising costs include managing the receipt, counting, banking of all donations, thanking all supporters, reclaiming Gift Aid on relevant donations, as well as supporting others to raise funds on our behalf. We received 12,703 donations (2024: 12.299) the smallest of which was ten pence and the largest was £50.000. 28 people left a gift in their will (2024: 30) and donated £1,177,967 (2024: £1,163.127).' this will fund the care for 1 in 3 of our patients in the coming year. Kathmn• Ilouse Ilospi¢o annualreport & coftsalldated finan¢ialst•t•mentsyearendMarth 2025 Page 20

The outsourced lottery contributed £337,044 (2024.. £296,365) to the Hospice. The outsourcing has increased the proportion of players, funds that have.supported the care provided by the Charity. Income Source Gross income Costs Net contribution % FR costs Fundraising (Excl legacies and lottery) 919,933 347,156 572,777 37.7% 2024: 946.423 294.669 651,754 31.1% 6.2,2 Retall Performance The strong performance of the retail operation has reversed in the last year. Staffordshire County Council did not renew the agreement to enable us to reuse items going into household waste. General revenues were depressed across most of our sites, whilst increases in the national minimum wage caused a significant growth in our operating costs. Comparative figures for the last two years are provided below. Year ended 2025 2024 Sale of donated goods Trading income Expenses Net revenues 4,419,327 4,625,113 268,340 305,840 (3,806,846) (3,653,217) 1,277,736 880,821 Gift aid on retail sales 340,388 325,297 Totsl contrlbution 1.221.209 1.603.033 6.3 Review of the Financlal Accounts The accounts for 2024125 are prepared in accordance with the requirements of the Charities Statement of Recommended Practice (2019) (FRS 102). K•th•rlne Ilow• Hospk• annts•lr•port at consolldatedfin•nclalstatementsye•rend M4r¢h 2025 Page21

6.3. 1 Review of the Inancialposition and main sources of funding Key financial aspects of performance are: Item Chan 2025 2024 Legacy income Increased by £14,840 1,177,967 1.163.127 Statutory Sector income Increased by £1 S6.902 1,531.815 1,374.913 Fundraising income Decreased by £26,519 919,904 946,423 Lottery income Increased by £40,679 337,044 296,365 Retail surplus Decreased by £381.825 1,221.209 1,603.033 Charitable costs Increased by £226.800 4,479,407 4,252,607 Statutory income benefitted from a contract to care for a single patient at £120,799, Charitable cost increases reflect investments in a collaborative advice line. outpatient services, community care, medical services, and additional payroll costs as noted within the report. The local Integrated Care Board has agreed to maintain the Charity's grant with an uplift for 2025/26. Investments Decreased by £2,980 626,535 Charitable Funds Increased by £553,194 10.234,811 ' Free Reserves Increased by £262,843 6,955,341 6.3.2 National Health Service (England) Capital Grant The Hospice was in receipt of'£98,012 as part of Hospice UK'S distribution of a £25m grant from NHS England to be spent on capital works. This is the first of two tranches of funding. The Hospice used these funds for the following capital works: 1. The development of the Systmone clinical system £73,350 2. The provision of laptops for the hospice at home team £19,620 3. The erection of a car park barrier to prevent unauthorised parking £13,377 The second tranche is for 2025126 and £75m will be distributed to hospices. Katharine House Hospice anrnialreport& consolidatedfinanc•alstatementsyearendMar<h2025 Page 22

6.3.3 Reserves policy The free reserve funds of the Charity, excluding restricted funds, are calculated from the consolidated balance sheet as total net assets less fixed assets, creditors over one year, and provisions. These are summarised below. The Trustees have established seven designated funds. Details of funds are contained in note 25 to the accounts. The Trustees, resetves policy is that in order to fulfil the Charity's obligations to the communities it serves it is desirable for there to be unrestricted and undesignated funds {or free reserves) available as current assets, or investments, equivalent to six months, running costs of the Charity: the minimum reserves should be two months, running costs. The free reserves stand at £6,955,341 (2024: £6.792,498) equating to 15 months operating costs for the Charity. The Trustees have approved a budget deficit of £736k for the financial year 2025/26 (after £380k of contingencies) to ensure the Charity can make progress against its strategy. Trustees are satisfied that the Charity has sufficient liquidity within the reserves to maintain the Charity's current operations over a medium term of three years in a normal operating environment. Details of the funds held by the Charity are provided in note 25. 6.3.4 Going con¢em When setting the 2025/26 budget the Trustees look at a further two year forecast and the implications on the Charity's reserves. At the time of setting the budget a surplus of £570k was predicted for 2024/25. The Trustees were therefore willing to allow an unusually high deficit in the budget to facilitate the continued development of the Charity and it seNices. Deficits forecasted after contingencies are,. £'OOOs 2025126 Budget 2026127 Forecast 2027128 Forecast Deficit 736k 880k 950k The forecasts do not include planned increases in revenues from opening new shops and further recovery of income streams. The Hospice is investing its reserves in growing its current seNices and developing a more robust organisation. 6.3.5 Investmentpolicy The Memorandum of Association empowers the Trustees to invest the monies of the Charity as may be thought fit. During 2022, Trustees transferred the investment funds to abrdn plc and later in the year transferred some cash balances to abrdn to attract higher interest rates. Abrdn's discretionary fund management business has since been taken over by LGT Wealth Management UK LLP. The assets held are disclosed in note 18. The primary objective of the investment portfolio is to provide capital growth over the medium term. KatharineHous¢ Hospi¢e ann(Mlreport&¢ons•lida¢edfinan¢ialsts¢ementsyearendMarch 2025 Page 23

No funds have been added to or withdrawn from the investments for the last six years. Performance over this time is set out in the table below based on the portfolio market valuation at the relevant tax year end for 2020-2022 and financial year ends for 2023-2025. At 31 March 2025 2024 2023 2022 2021 2020 Value (£OOO's) 627 629 574 601 584 499 Annual Growth % 17.0 -18.0 Principal Risks and Uncertainties The Trustees have drawn up an assessment of key risks that they feel are Important to consider in the management of the Charity. A structured methodology is in place for the assessment and management of risk. Static risks are usually reviewed annually, but dynamic risks are reviewed more frequently by the executive. The principal risks and uncertainties faced by the Charity are: The effectiveness of the Staffordshire and Stoke-on-Trent Integrated Care Board. Government imposed increases in the operating costs. notably minimum wage increases and employers national insurance contributions, which have combined to add over 30Yo to the costs of employing staff. Difficulty in acquiring new, suitable retail premises. Overstretching of the managerial resource. ADDrrioNAL DISCLOSURES Structure, Governance and Management 8.1 How the Charity is Constituted Katharine House Hospice is a charity and company limited by guarantee. Its governing document is the Memorandum and Articles of Association of the company, which may be altered by a simple majority of voting members at an annual or extraordinary general meetin9. This document was last amended on 28th November 2023. 8.2 Organi5ational Structure Katharine House Hospice has two wholly owned subsidiaries. Katharine House Retail Limited (Registered company number 03949314), operates eBay, house clearances. sales in prisons, new goods, and merchandising activities. KH Promotions Limited (Registered company number 03295776), is dormant. Kath•rlne Hause anmialrwrt& consollda¢edfinanwlst•lementsyearendMarch2025 Page 24

Katharine House Retail Limited gift aids its profits to the Charity. Note 11 to the financial accounts summarises the performance of subsidiary companies". their accounts will be filed at Companies House. KHH Development was dissolved in November 2024 and Embrace Quality Care in April 2025. 8.3 Decision-making Processes 8.3. 1 Board of Trustees The Trustees (who are also directors of the company) act through the Board of Trustees, which meets six times in each year. Additional meetings may be called from time to time. The Board oversees all strategic. tactical, and governance aspects of the Charity's operation and its future direction, The Board delegates most of its functions to six committees, each with their own terms of reference. Governance is undertaken by each Trustee committee in their areas of responsibility, monitored by the Governance Committee and the Board of Trustees. These committees are: 1. Clinical 2. Income Generation and Engagement 3. Finance 4. Remuneration 5. People and Support SeNices 6. Governance 8.3.2 Management The day-to-day operation of the Charity is delegated through the annual budget setting process to the Chief Executive and through him to the management teams. 6 senior executives form the Executive Team. 8.4 Trustees Appointment. Induction. and Support Recruitment of Trustees is overseen by the Governance Committee. Consideration is given to the knowledge and skills desired of new Trustees in relation to the current skills and attributes of existing Trustees. the skills that are deficient on the Board, and the need to plan for succession of Trustees who are due to stand down. Following a shortlisting process candidates are invited to attend a Meeting with two current Trustees. The full Board must approve any initial appointment. At the AGM immediately after appointment Trustees are formerly elected and can serve for up to six years. Thereafter Trustees may stand for two further elections each for two yearterms, but thereafter must stand down for a period of 11 months. New Twstees receive a full induction and have a Trustee mentor who acts as a confidential advisor on Trustee issues. They have the option to spend time in key areas, for example, care and retail. Kathanno House Hospi¢e amwalreport& ¢¢MsOllda¢edfin￿<I4I$8¢wm¢ntsYer¢n0A14rch2Ols Page 25

Training for Trustees is provided on an ad hoc basis, although trustees are expected to complete a number of online courses. for example on safeguarding and Data Protection. Every three years appraisals take place for Trustees and for the full Board. Other Relevant or Required Disclosures 9.1 Vital Volunteer Support Katharine House Hospice simply would not exist without the volunteers who were so heavily involved in the Charity's inaugural steering committee and we would not be able to provide the quality and variety of services we do without the ongoing passion, time and commitment of this amazing group of people who have continued to support the Charity. At 31 March 2025 we had a total of 305 volunteers supporting the Charity (2024: 311). During the year 18 volunteers stopped volunteering (2024= 57). During the year volunteers are estimated to have provided 47,281 hours of support (2024: 49.475), a decrease of 2,194 hours. Our volunteers, who vary in age frorn young people on Duke of Edinburgh schemes to some over 80 years, bring with them a diverse set of life experience, passion and enthusiasm. We are immensely proud and appreciative of all of our volunteers and have large numbers who have completed and have been recognised for long service (in excess of S years). During 2024/25 23 of our volunteers were acknowledged for long ser4ice (2024: 52): including 1 for 30 years, 2 for 25 years, and 1 for 20 years of seNice. 9.2 Charity Governance Code The Trustees are aware of the new guidance issued by the Charity Commission and during the year have commenced a review of this guidance to identify appropriate actions to improve the governance of the Charity. Trustees commissioned a self assessment of performance on governance from an external company. The Charity received the report in March, which showed a close alignment between the Trustees and the executives in terms of governance progress. The main area of concern is equality, diversity and inclusivity where more progress can be made. 9.3 Relationships wlth Other Organisations Katharine House Hospice is an independent charity, but is affiliated to or has connections with a number of organisations. These are= the local council for voluntary services Support Staffordshire; the National Association of Hospice Fundraisers; and Katharine House Hospice is a member of Hospice UK. Katharine House Hospice's care seriices are regulated by and registered with the Care Quality Commission. Katharine House has a number of shared posts with the University Hospitals of North Midlands NHS Trust. Kathanne House Ilowe annualreport&¢onsolAlatedfinanoalstatementsyearendMar¢h2025 Page 26

The Charity is funded by NHS England to provide in-reach services to two local prisons and to support local care homes in the delivery of palliative and end of life care. The Charity has developed a 24n advice line in partnership with Douglas Macmillan Hospice in Stoke. and Compton Care in Wolverhampton covering the Staffordshire and Stoke-on-Trent Integrated Care Board. Katharine House funds our partners for the provision of these services, which is the most cost-effective way of delivering this service. From April 2025 this service is expected to be funded by the ICB. The Charity seeks to develop relationships with other providers and charities in the furtherance of its objectives. 9.4 Related Parties None of our Trustees receive remuneration or other benefit from their work with the Charity. There are a number of connected entities associated with Trustees and executives and these are disclosed in full in note 27 to the accounts. Two Trustees are employees of the University Hospitals of North Midlands Trust. Katharine House jointly funds posts with, or contracts in services from, this trust. Decisions in relation to these posts either pre-date the appointment of the Trustee or the Trustee has declared an interest in the decision and been absent when any such decisions have taken place. The relevant Trustees have taken no part in the contract negotiations. 9.5 Pay Policy for Senior Staff The Trustees and the executive management team comprise the key management personnel of the Charity collectively setting the strategy, policies, and governance framework for the Charity and the executive team directing, controlling, and operating the Charity on a day-to-day basis. All Trustees give of their time freely and no Trustee received remuneration in the year. Details of Trustees, expenses are disclosed in note 10 to the accounts and were nil (2024: Nil). The pay of all staff is reviewed annually by the Remuneration Committee comprising Trustees and the Chief Executive and on an ad hoc basis as and when it is felt appropriate to adjust salaries. The Committee seeks to balance fairness and equity in the pay of staff for the roles performed, against affordability for the Charity. For positions where recruitment is more difficult higher wages may be offered. Certain groups of staff - particular nursing and care staff have structured pay scales that are broadly commensurate with similar roles in the NHS Agenda for Change pay scale. The Chief Executive's pay is determined by Trustees at a full Board rneeting. The Remuneration Committee is empowered to award discretionary payments to staff for exceptional performance,. however this is rare. No awards (excepting acting up allowances) were made in the year under review (2024: 0). No staff are on bonus schemes. Staffing levels, redundancy costs, pensions and emoluments are detailed in notes 12, 13 14, and 15 to the accounts. atharhpe House Hospice annualr•port & ¢onsolldat•dfinan¢olstat•m••tsy•arendMar¢h 2025 Page 27

9.6 Employment Policy Katharine House seeks to be an equal opportunities employer. The nature of some of the tasks required to be done in retail and care (the two largest employment sectors of the Charity) make it difficult to employ people with significant physical disabilities. All positions are open to people with a range of mental health issues. We do not record and maintain comprehensive data on employees with disabilities. Only when the organisation has a need to know do we keep such records. for example where we have a duty of care as an employer. We are therefore only able to report on the minimum numbers of people with disabilities known to us. We provide a free and confidential advice line to all employees, but as this is confidential we have no data on levels of access. The Charity is required to report its pay arrangements under The Equality Act 2010 (Gender P.ay Gap Information) Regulations 2017. The following table provides a summary. ri 2021 As at: ri 02 2024 202 2022 Mean gender pay gap 0.19 - 0.36 + 7,56 0.14 3.78 12.17 Median gender pay gap 8.03 7.72 2.56 4.19 12.2 3.45 The mean gender pay gap has moved to a neutral position. The median gender pay gap is negative. showing the median pay for women is 8% higher than for men. 10. Public Benefit Statement All services provided by Katharine House Hospice are provided free of charge to patients and families,. Trustees consider that all this activity is, in its entirety, charitable. In providing access to these services, the Trustees have sought to ensure that the only considerations are: the appropriateness of meeting the needs of each patient; the capacity to meet this need,. and the safety and welfare of all patients. In making decisions in relation to the delivery of current services, the proposed development of new services. and the use of the Charity's funds, the Trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission. 11. Reference and Administrative Details Charity Name.. Charity Reg￿tratiO*T. Incorporatioff. Company Number. Date ofIn¢orporat/off. Katharine House Hospice 1011712 Company Limited by Guarantee 02700516 25th March 1992 K•tharln• House 11ospk•annualreport& cansolidat•dfinan¢lalst•t•nwntsye•rendMar¢h 2025 Page 28

Registered Office. Weston Road. Stafford, ST16 3S8 The Registered Office is also the principal address of the Charity Trustees and Dlrectors and Key Management Personnel: The Directors of the Charity are its Trustees for the purpose of charity law. The Trustees and Officers serving during the year and since the year end were as follows: Trustees: Mr P R Catchpole Chairman Dr M Bland Mrs A J Brooke Mrs A J Cape Mrs J C Clarke DrZDin Mr F A Gaffney Mr J R Harley Mrs S J Harris Dr R G M Hughes Mr A P Jeffries Mr S P Kirwan Mr B W J Phillips MrA S Porter Mrs H E Reeves Mr M R Smith (appointed 2 July 2024) (term ended 27 November 2024) (resigned 16 August 2024) (appointed 24 July 2024) Company Secretsry: Mr S P Kirwan Reg05tered Manager.. Officers: Mr D Fletcher Director of Care: Medical Director: Chief Executive: Deputy Chief Executive: Retail General Manager. Director for People: Mr D Fletcher Dr C Bruckner-Holt Dr R T Soulsby Miss L M Taylor Mr S Dodd Mrs C Poole (appointed 10 November 2024) Auditor / Accountants: Crowe U.K. LLP Black Country House, Rounds Green Road, Oldbury, West Midlands B69 2DG Investment Brokers: LGT Wealth Mana9ement UK LLP Fourteen Cornhill, London, EC3V 3NR Bankers: Lloyds Bank PIC Market Square. Stafford. ST16 2JL Ka¢harnwHouAI Hospice anntsalreport& consolldatedfinandalstat•mentsyearendMarch2025 Page 29

1. Responsibilities in Relation to the Financial Statements The Board of Trustees is required to prepare financial statements which give a true and fair view of the state of affairs of the Charity and Group at the end of the financial year and of the income and expenditure of the Charity and Group for the year ending on that date. In preparing those financial statements, the Board of Trustees is required to: Select suitable accounting policies and apply them consistently, Make judgements and estimates that are reasonable and prudent; Prepare the financial statements on a going concern basis unless it is inappropriate to presume that the company will continue in business. The Board of Trustees is also responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure the financial statements comply with the Companies Act 2006. Trustees are also responsible for safeguarding the assets of the Charity and Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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 1st January 2019).
2. Statement as to Disclosure to our Auditors The Trustees will recommend to members the re-appointment of our present auditors Crowe U.K, LLP. In so far as the Trustees are aware at the time of approving our Trustees, Annual Report and Strategic Report., There is no relevant information, being information needed by the auditor in connection with preparing their report, of which the Group's auditor is unaware, and Having made enquiries of fellow Trustees and the Group's auditor that they ought to have individually taken, they have each taken all steps that helshe is obliged to take as a Trustee in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
3. Approval The Board of Trustees formally approved their Annual Report and, as Company Directors, approved the Strategic Report contained therein on 23rd July 2025. Peter Catchpole Chairman, Katharine House Hospice Katharlne House Hospkeannualreport& coMolldat•dfinanoalstatenMntsyearendMar(h2025 Page 30

Independent Auditor's Report INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF KATHARINE HOUSE HOSPICE Oplnlon We have audited the financial statements of Katharine House Hospice (the "charitable company.) and its subsidiaries (the "Group.) for the year ended 31 March 2025 which comprise the consolidated statement of financial activities, the consolidated balance sheet, the company balance sheet. the consolidated statement of cash flows and the notes to the financial statements, including significant accounting policies. 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). In our opinion the financial statements: give a true and fair view of the state of the Group's and the charitable company's affairs as at 31 March 2025 and of the Group's incoming resources and application of resources, including its income and expenditure 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 Companies Act 2006. Basis for opinion 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. Concluslons relating to golng concern In auditing the financial stalements. we have concluded that the Trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material Un￿rtaIntieS relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibililies and the responsibilities of the Trustees with respect to going concern are Kathahn•Hous• Hospke annualreport& comolA*atedfinanualJtatementsyear endmarch 2025 Page31

described in the relevant sections of this report. Other information The Trustees are responsible for the other information contained within the annual report. 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. 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 rnisstated. If we identify 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 tha 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. Opinion on other matters prescribed by the Companies Act 2006 In our opinion based on the work undertaken in the course of our audit the information given in the Trustees, report, which includes the directors, report and the strategic report prepared forthe purposes of company law, forthe financial yearfor which the financial statements are prepared 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. Matters on whlch we are requlred to report by exceptlon In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified 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 matters in relation to which the Companies Acl 2006 requires us to report to you if, in our opinion: the parent company has not kept adequate accounting records. or the parent company financial statements are not in agreement with the accounting records and returns. or rtain disclosures of Trustees, remuneration specified by law are not made., or V￿ have not received all the information and explanats'ons we require for our audit. Responslbilities of Trustees Katharfne House 110spi¢e annualrnport& c0nsolldatsdfinanrMl￿atefflWjtsye•rendmarch2o2$ Page 32

As explained more fully in the Trustees, responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) 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 fi'nancial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statemenls, the Trustees are responsible for assessing the charitable company's abilty to continue as a going concern. disclosing. as applicable. matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Auditors. responsibilities for the audlt of the flnancial 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 auditorfs 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 laken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities. including fraud is detailed below- We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS 102) and the Companies Act. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the company's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the company for fraud. The key laws and regulations we considered in this context were CQC regulations, Gambling Commission legislation, General Data Protection Regulation, health and safety legislation and employee legislation. Auditing standards limit the required audit procedures to identfftrf non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal corresponden￿. if any. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud. to be within the recognition of grant and legacy income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Finance and Remuneration Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, income testing on a sample basis, reviewing accounting estimates for biases, reviewing any regulatory correspondence and reading Minutes of meetings of those charged with governance. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing slandards. We are not Ka¢haryne House Hosplte aftnualreport& cons•11dat•dfin￿(la1st•t0m0ntry••rrnd￿I￿r¢h 2025 Page 33

responsible for preventing non-compliance and cannot be expected to detect non-compliance with all lavts and regulations. A further description of our responsibilities for the audit of the financial statements is available on the Financial Reporting Council's website at: W¥VW.frc.or .ukJa onsibilities. This description forms part of our auditorfs 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 matters we are required to state to them in an audilor's report and for no other purpose. To the fullest e￿ent permitted 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. Helen Blundell LLB FCA FCIE DCHA (Senior statutory auditor) for and on behalf of Crowe U.K. LLP ststutory Auditor Black Country House Rounds Green Road Oldbury West Midlands B69 2DG Date: 24 November 2025 K•tharineHouse Hospice annualreport& consol/datédfinancMlstatementsyearendAlarch ZQ2S Page 34

Katharlne House Hospice Consolidated Statement of Financial Artivities Includlng Income and Expenditure kcount For the Year Ended 31 March 2025 1025 Tot415 2024 Toials Not• Unr•strlrt•d Restrlrted Unre51rkted R¢slrlrt*d INCOME Donations and legacies Other trading activities Chafitsble octivities 2.249,130 5.124,694 1.256.501 245,232 3,996 89,175 2.338,305 2,235.875 81.843 2.317.718 5,344.447 1,685,590 177,044 23,810 {41 {51 5,124.694 1.531.815 245.231 5,344.447 1,539.932 177.044 27S.314 145,658 Investments oiher Income 3.996 23.277 533 Total Incom• 8J79.553 364889 9,244.042 9.320575 228M34 9J48.609 EXPENOITURE Raisingfunds 4,201,193 4,201,193 3,960.46S 3,960.465 Charitable activltl•s 4,196,881 280,526 4,477,407 4,029.SOS 223,102 4,252,607 T•tal Exp•ndliur• 8.398,074 280,526 8.678.600 7.989.970 223.102 8,213.072 Net Ilossesllgaln5 on investment assets 1181 112,2481 112,2481 33.102 33,102 Net Income I lexpenses) before pro¥lslons 469,231 83,963 553,194 1,363,707 4.932 1.368,639 Provlslon for deferred tix Gross translers between funds 1251 15,9691 15,9691 95,514 195,Sl41 Net Mo¥tm•Tht In Fund• 564.745 111.5511 S53.194 1.357.738 4.932 1.362,670 ECONCILIATION OF FUPIDS Fund balance5 brou8ht foiward 9.576,955 104,662 9,681,617 8,219,217 99,730 8,318,947 Fund 6•lan¢ei C•rrl•d Forward 12S I 10.141.700 93.111 10.234,811 9,576,955 104,662 9.681,617 The consolidated statement of financial activities includes all 8aSn5 and1055e5 reco8nised in the year. All income and expenditure Is derived from continuing activities. The consolidated statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. The Hospice's accounts comprises a net surplus for 2025 of £558,19412024'. surplus £1,362,670). Katharfne House Hospke consolidated flnanelal$t•tementsye•rendM•tth2025 Page 35

Katharlne House Hospice (Registered number: 02700516) Consolidated Balance Sheet At 31 March 2025 2025 Total Funds 2024 Total Funds Unrestrlrted Funds Restrlrted Funds Unrestrlrted Funds Restrlded Funds Nole FIXED ASSErs Tan8ible assets Intangible assets 1161 1171 3,113.009 73,350 3,113.009 2,884,4S7 2,884,457 73.350 Investments 626.S35 626,535 629,515 629.sls 3A12J94 3J12A94 3,513,972 J,513,972 CURRENT ASSE15 Oebtois 622,117 622.117 686,723 686.723 Stock I,S24 1,524 1,186 1,186 Cashaibankand inhand 6,680,246 93,111 6,773.357 S.968,278 104.662 6.072.940 7.303.887 93.111 7,396,998 6,656,187 104,662 6.760J49 CREorroAS unts l•llln$ due wlthl n one year 1872,2481 1872.2481 1493,2041 1493,2041 NEfcuRAENT ASSETS 6.431.639 93,111 6,524.750 6,162.983 104.662 6J67.64S TOTAL ASSEfs LESS CURAfNT LIABILMES 10.244.533 93,111 lo,337￿44 9.676.955 104.662 9.781.617 PROVISIONS {23) 1102.8331 1102,8331 Iioo.0001 iioo,0001 TOTAL NET ASSET5 10 141.700 10,234I11 9 S76 955 104 662 9 681.617 REPRESENTEO BY: Restr5cted funds 1251 93,111 93,111 104,662 104,662 Designated funds 666.000 666,000 596,000 596,000 Unresiricted lunds 9,475,700 9,475,700 8,980,9S5 8.980,955 10.141,700 93,111 lo,234￿11 9.576.955 lQ4.662 9.681.617 The Trustees acknowled8e their responsibilities for complying with the requirements of the Charlties Act with respect to accounting records and preparation of financial statements. Approved by the Board of Trustees meeting on 23 July 2025 and signed on its behalf by:_ 8 W J Phlllips Treasurer P R Catchpole Chairman KathanneHouse Hospke cansolidatedfinan¢ialstatenMntsyearendAlarch2¢L?S Page 36

Katharlne House Hospice (Registered number: 02700516) Company Balance Sheet At 31 March 2025 2025 Total Funds 2024 Total Funds Unrestrlcted Funds Restrkted Funds Unrestrlrted Restrlrted Funds Funds Note FIXEDASSErs Tangible assets Intsngible assets In¥estsnents 1161 1171 1181 1181 3,113,009 3,113,009 73,350 626,535 102 2,884,457 2,884,457 73,350 626,535 629,515 602 629.515 Investment in Group 102 602 3J12.996 3￿12.996 3￿14￿74 3￿14.574 CURRÉNT ASSETS Debtors 1191 866.586 866,S86 1,012,545 5,562.348 1,012,545 5.667,010 Cashatbankand In hand 6,347,248 93,111 6,440,3S9 104,662 72IYA34 93,111 7,306,945 6,574J93 104.662 6.679.555 CREDfTORS Amounts lallin8 due wlthin one year 1211 1777,2971 1777,2971 1412,5121 1412,5121 NET CURRENT ASSETS 6A36.537 93.111 6.529.648 6,162.381 104,662 6,267,043 TOTAL ASSETS LESS CURRENT IIABILrnES 10249,533 93.111 IOJ42.644 9.676.955 104,662 9.781,617 PROV1510NS 1231 1102,8331 1102,8331 lioo,0001 iioo,0001 TOTAL NET ASSETS 10.146.700 93.111 10239.811 9.576.955 104.662 9,681,617 REPRESENTED BY: Restricted funds 1251 125} 125 93.111 93,111 104.662 104,662 596,000 Desi8nated funds Unrestricied funds 666.000 666.000 596.000 9,480,700 9,480,700 8,980.955 8,980,955 10.146.700 93,111 10239AII 9,576,955 104,662 9.681.617 The Trustees acknowledge thelr responsibilities for complyln8 Wlth the requirements of the Charities Act with respect to accountin8 records and preparation of financial statements. Approved by the Board of Trustee5 meeting on 23 July 2025 and Signed on its behalf bv'.- B W J Phillips Treasurer P R Catchpole Chalrman K•th•nne House Hosplco consolld•tedfinanustatementsyearendllarch2025 Page 37

Katharine House Hospice Consolidated Statement of Cash Flow For the Year Ended 31 March 2025 2025 2024 RECONCILIATION OF OPERATING PROFITTO OPEIIATING CASH FLOWS Net movement In funds 553,194 1,362,670 Net movement In provlslon5 2,833 105,969 Depreclatlon 169,886 147,338 AmDrllsation Los5 I I￿1 n) on 1nve5tff￿nt assets 12,248 133,1021 Dlssolvement of Embrace Quality Cafe Umited 3,845 15,0001 Income from fixed asset investment Note I 1206,6271 1161,SS41 Interest re¢eived Note I 138,60SI 115,4901 Gain on disposal of fixed assets 15001 Decrease in debtors 64,606 686,000 Ilncreaselldecrease In stock 13381 2,010 Increaselldecreasel In credltors 379,044 1244,6301 Net osh Inflow from operatlni •ctl¥btlfj$ 940,086 lJ43.711 CASH FLOW STATEMENT Net cash provided by operating activltles 940.086 1.843,711 Returns on inve5tmÈnts and servicing of finance Note I 245,232 177,044 1,18S,318 2.020,755 Purchase of tlxed a55ets Note I 1485,4931 11,127,880) In(re•se In t•sh 699,825 892075 Katharine Howe Mo4Iité consolldat•dfinancl•lstatenMntsyearendMarrh 2025 Page 38

Katharlne House Hospice Notes to the Consolidated Statement of Cash Flow For the Year Ended 31 March 2025 NOTE i TO THE CASH FLOW STAIEMENT 2025 2024 Returns Gn Investments and servldni of finart Income from investment portfolios Income from liquidity fund Total Income Irom Ilxed asset In¥eslmenQ$ Note 6 17,608 32,152 Note 6 189.019 129,402 206,627 38.605 161,554 15.490 Other interest received Note 6 245,232 177,044 Sale and purthase of fixed assets Purchase of tan8ible flxed 4ssets Purchase of intsneible lixed assets Note 16 1398,4381 173.3501 11,108,725) Note 17 Sale proceeds of tsn8ible fixed assets Purchase of flxed asset investments soo Noi• 18 117,6051 3,900 120,4551 BOO Proceed5 of $31e of fixed asset investments Note 18 1485,4931 11,127.8801 NOTE11 TO THE CASH FLOW 5TATEMENT- Refondll*lon of Net Cash Flow to Mov•m•nl In Not Funds Net cash Inflow 699.825 892,875 Change In nel funds in the year 699.825 892,875 Netfunds atl April 6,073,679 5,180.804 Net fundsat 31 Marth 6.773.504 6,073.679 NOTE111 TO THE CASH FLOW STATEMENT- Analys15 9fthange51Th net funds Asat I Apfll 2024 6.072.940 739 Cath Flows 700.417 592 Asat 31 Marth 2025 6,773.357 147 Cash Inhand andatbank Cash in fixed asset investments TOTAL 6,073,679 699A25 6.773504 atharfne House H¢)spi¢e ¢onsolldat8dfinanclalstat•nwntsye•rendMarch 2025 Page 39

Katharine House Hospice Notes to the Financial Statements For the Year Ended 31 March 2025 I. ACCOUNTING POUCIES a) Basls of Accountlng The accounts Ifinandal statements) have been prepared under the historical cost convention wlth items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with the second edition of the Charitie5 Statement of Recommended Practice issued in Ortober 2019, the Financial Reportin8 Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021, the Companies Act 2006 and the Charities Act 2011. Katharine House Hospiee meets the definition of a public benefit entity under FRS 102. The financlal statements have been prepared by the Trustees to give a 'true and fair, view and on a going concern basis under the historical cost convention as modlfied by the revaluation of investments. The financial statements are prepared in sterlin8 which is the functional currency of the Charity and rounded to the nearest pound. The significant accountin8 policies pplled In the preparatlon of these financial statements are set out below. These policies have been consistently pplied to all years presented unless otherwise stated. b) Going Concern The Charity reported a consolldated cash inflow of £699,825 for the year12024'. £892,875) and has cash reserve5 of £6,773.35712024.. £6.072,9401. In March the Board approved a deficit budget for the period 2025126 to 2027128, these budgets have taken accovnt that investments in services wlll be taken from the surpluse5 made in the last 3 years. Trustees consider that the leve15 Ot reserves are sufficient to ensure that the Hospice is a going concern in the middle term. c) Branch Accountlng There exist a small number of support groups withln the communlty, raising awareness about and funds to support the work of Katharine House Hospice. Under the SORP, Trustees consider these to be branches of Katharine House Hospice but consider the expense involved in accounting for these groups on a full accruals basis and auditin8 these accounts to be unwarranted in relation to the size of the funds 8enerated. dl Income Income is reco8nlsed when the Charity has entitlement to the funds, any performance conditions attached to the itemlsl of income have been met, it is probable that the income will be received. and the amount can be measured reliably. The Charity receives income from different sources.. 1> Fundialsln8 In¢ome Fundraisin8 Income is Income received as a result of tlme taken by fundraisers in or8anisin8 fundraisin8 events, soliciting donations and arranging for donations to be made to the Charity. Unsolicited gifts are cl355ed as voluntary donatlons and are Included in thls sectlon. Further detai15 to this income are shown in note 3. 111 Legacy Income Legacies are treated as voluntary donations. Entitlement to legacy income is taken as the earlier of receipt or notification that a distribution will be made by the executor. Receipt of a le8acy, in whole or in part, is onlv considered probable when the amount can be measured reliably and the Charity has been notified of the executor's intentlon to make a distrlbution. Kathanne House Hospk• consolida¢edfinancialst•tementsyearendM•rch 2025 Page 40

Katharlne House Hospice Notes to the Flnancial Statements For the Year Ended 31 March 2025 (Continued) I. ACCOUNTING POLICIES (Cont.) dl Incorne (cont.) iii) Other Trading Income A breakdown of income is shown in note 4. KH Promotions is a subsidiary company operating a society lottery. the operation of this lottery was transferred over to Local Hospice Lottery Ltd at the end ofjune 2022 and is now dormant. Historically KHH Development provided a management consultancy senilces to other charities but became dormant during the financial year 2022123 and was struck off during the financial year 2024125. Katharine House Retail sold donated goods through E-bay sales and the prison outlets ènd any new goods sold through the shops. The company also acted as an agent for the selling of donated goods that are gift aided to the Hospice. In addition, the company operated a house clearance service. Donated goods refer to items donated to the Hospice for resale through the charity shops. The income from these items is recogni5ed at the point of sale. Any stocks of donated goods held at the financial year end are not attributed a value as it Is not practical or otherwise economical to do this. Iv> Charltable Actlvltles Income from 8overnment and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the Charity has entitlement to the funds, any performance conditions attached to the 8rants have been met, It Is probable that the Income will be received, and the amount can be measured reliably and is not deferred. Further details regardin8 Statutory sector 8rant income received by the Charity are set out in note 5. vl l)onated Goods Donated goods refer to items donated to the Hospice for resale throu8h the charity shops. The income from these Items is reco8nised at the point of sale. Any stocks of donated goods held at the financial year end is not attributed a value as it is not practical or otherwise economlcal to da thls. vi) Investment Income Investment Income Includes dividends and interest on funds held on deposlt. Thls Income 15 Included when receivable and the amount can be measured reliably by the Charity. Further details regarding investment income received by the Charity are set out in note 18. vll) Fees and Other Income The breakdown of this is shown In note 7. This includes miscellaneous which is other Income charges for use of facilities and services. This income is included when receivable and the amount can be measured reliably by the Charity. e) Donatlon of Assets Gifts of tan8ible assets are included in these accounts at an estimated valuation which approximates to cost. Donations are included in the income and expenditure account as such. and in the balance sheet under the approprlate headings. Expenditure and Irrecoverable VAT Expenditure is recognlsed once there Is a legal or constructive obli8ation to make a payment to a third party, It Is probable that settlement will be required and the amount of the obli8ation can be measured reliably. Expenditure is classified under the followin8 activity headings: K•thanne Ilouse H<yi¢e ¢OnmI￿at¢d finan¢ialstatenwntsyearendMarch 2025 Page41

Katharlne Hou$e Hospice Notes to the Financial Statements For the Year Ended 31 March 2025 (Contlnuedj I. ACCOUNTING POLICIES {Cont.) Expenditure and Irrecoverable VAT (Cont.) 11 Costs of ralslng funds These include the expenditure on operating the retoil charity shops, fundraislng to generate donatlons and to record and thank donors and the costs associated with managing the investment portfolio lincludin8 brokerage costs). The onsolidated accounts detall the cost of carryin8 Out subsidiary operations and additional retail activity. the surplus from these activities is donated to the Charity. li) Expenditure on ¢harltable artlvltles Expenditure on charitable activities includes the expenditure incurred to operate the H05pice servlce5. Includln8 the overheads of the Charity and the cost of governance. 111) Irrecoverable VAT Irrecoverable VAT is wrltten off in the year it is recognised as such and recorded as a cost to that actlvlty. 81 Basls for the Allotatlon of Costs il Dlrect costs Where possible costs are char8ed directly to one of the primary services of the charity. 11) Support costs Overhead costs are those that support the primary Services of the Lharity but also Other function 5. These are allocated on the basis of fair usage of the relevant overhead or otherwise apportioned on the basis of cost. Overheads are allocated directly to primary services, governance, fundraising and trading activities rather than allocating or apportionin8 Costs to other support and overhead funrtions. h) Tanglble Flxed Assets and Depreclatlon Tangible flxed assets are stated at COSt less depreciation. Capltal Items in exce55 of £5,000 are capitalised. Depreciatlon is provided at rates calculated to write off the cost of fixed assets les5 thelr estimated resldual value, over their expected useful lives on the following bases'.- Land Freehold buildings Refurbishments to leasehold buildin85 Leasehold buildin85 Equipment. furniture and vehicles General IT equipment strai8ht line basis Straight line basis straight line basls straight line basis strai8ht line basls 7% 10-33% 20% 20-50% il Intangible Fixed Assets and Arnortlsatlon Intangible fixed assets are stated at cost less amortisation. Capital items in excess of £5,000 are capitalised. Amortisation is provided at rates calculated to write off the cost of fixed assets less their estimated residual value, over their expected useful lives on the following bases:. Software 20% straight line basis Katharine H4xwe Hosw'¢• consalld•tedfinancialstat•nwntsyear endMar(h 2025 Page 42

Katharine House Hosplce Notes to the Flnanclal Statements For the Year Ended 31 March 2025 (Continued) I. ACCOUNTING POUCIES (Cont.) j) Investments Fixed asset investment in quoted shares. traded bonds and similar investments are valued initially at cost and subsequently at falr value Itheir market valuel at year end, with this movement being shown in the Statement of Financial Activities. The same treatment is applied to unlisted investments including investments with subsidiaries, unless fair value cannot be measured reliably in which case it is measured at cost less impairment. k) Stock Stock is the value of Christmas card stocks held for sale stated at the lower of cost and net realisable value. l) Debtors Trade and other debtors are reco8nised at the settlement amount due after trade discounts have been applied. Subsequently they are measured at the cash or other conslderation expected to be received. Prepayments are valued at the proportionate amount pre-paid relating to future accounting periods at the balance sheet date. m) Cash Cash at bank and cash in hand Includes all operatlng cash held and immediately available for the Charity's use. In addition to this there is cash sitting within the investment portfolio and the investment liquidity fund. n) Credltors Creditors are recognised where the Charity has a present obligation arising from a past event that will probably result in a transfer of funds to a third party and the amount to be transferred can be reliably determlned. o) Payments on Account Payments on account is income received but at the balance sheet date the Charity has no legal entitlement to the funds. in particular donor's money held by the retall company, which donors are yet to conflrm may be donated to the Charity and lottery players who have paid in advance of future draws. p) Deferred Income Income recelved prior to an event which would be returnable if the event does not occur Is deferred until the event ha5 occurred. q) Penslons The Charity operates a number of employee pension schemes. Further details regarding the schemes operated are set out In note IS of these accounts. Contributions payable for the year are char8ed in the income and expenditure account. r) Fund Accounil General Funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the 8eneral objects of the Charity. Designated funds are unrestrirted funds of the Charity which the Trustees have decided at their discretion to set aside to use for a specific purpose. Restrirted funds are donations which the donor has specified are to be used solely for particular areas of the Charity's work. Note 25 provides further explanation behind the restricted and desi8nated funds. s) Dllapidatlon Provlslon A provision has been made for dilapidations obligations as set out in the operatin8 lease 38reements. The dilapidation provision 15 calculated on a straight-line basis over the course of the lease. Katharlne Howe HospKe ConS￿ld*tearin4n¢lal$tsrenWntsYe￿fQnéHarch2O2s Page 43

Katharlne House Hospice Notes to the Flnanclal Statements For the Year Ended 31 March 2025 {ContinuedJ I. ACCOUNTING POLICIES (Cont.) t) Operalln8 Leases Rental applicable to operatin8 leases where the ownership remains with the lessor and the expenditure is charged to the income and expenditure account on a straight-line basi5 over the period of the lease, u) Method of Consolldatlon The financial statements consolidate the accounts of Katharine House Hospice and all its subsidiary undertakin85 using the acqulsition method. v) Oeferred Taxatlon Deferred tax15 provided in full on timlng differences whlch represents a liability ot the balance sheet date. at rates experted to apply when they crystallise based on current tax rates and law. fimin8 differences arise from the inclusion of items of Income or expenditure in tax computations in periods different from those In whlch they are included in the financial statements. Deferred tax is now provided on timin8 differences arisin8 from accelerated capital allowances as in accordance with SORP IFRS 1021. Deferred tax assets and liabilities are not discounted. w) Volunteers The Charity benefits 8reotly from the Involvement and enthuslastic support of Its many volunteers, details of which are given in the annual report. In accordance with FRS 102 and the Charitles SORP IFRS 1021, the economlc contribution of general volunteers is not reco8nised in the accounts. LEGAL STATUS OF THE CHARITY The Charity is registered with the Charity Commission In England and Wales Ireglstered number 10117121 and Is incorporated in En8land and Wales as a Company Limited by Guarantee and does not hève share capital. Each member of the company has undertaken to contribute to the assets of the company in the event of it bein8 wound up while s/he is member, or within one year after slhe ceases to be a member, for payment of the debts and liabilities of the company contracted before s/he ceases to be a member such amount as may be required not exceeding £1. Each member pays a subscrSption fee annually. Income from membershlp is the annual subscriptlon. DONATIONS AND LEGACIES INCOME 2025 Total 2024 Toi•l Hospke & Group Unrestrlrted Re5trlrted UnrestrStted Restrlded 1Thom• Sources Donètions from soclety lottery Other donations Trusts and grant 8ivin8 bodles Gift aid on donations legacie5 Other sources 337.044 607,668 61.591 82,474 1,158.6S7 1,696 2249.130 337,044 626,251 112,873 82,474 1,177,967 1,696 Z.338.305 296.365 663,658 40,266 71,415 1.162,933 1,238 2.235,875 296,365 673,297 112,276 71.415 1.163.127 1,238 18,583 51.282 9,639 72,010 19.310 194 89.175 81.843 2.317.718 The Hospice recognises the residual benefit of two estates as at 31.03.25, which the value outstandin8 has been approximately valued at £398k. One of these estates consisted of two trusts which had a life interest, one of which was reali5ed in 2021, the date of realisation of the other fund is not known. In addition to these two estates there is approximately £577k legacies whlch have been notified to the charity before 31.03.25, but have not been recognised as income in the year as they do not meet the H05pice's income recognition criteria. Katharine House Ho4vo ¢¢ns0lhlatedf￿?n¢•aIstat•nwntsy¢4rendm3T<h2Q2S Page 44

Katharlne House Hospice Notes to the Financial Statements For the Year Ended 31 March 2025 {ContlnuedJ INCOME FROM OTHER TRADING ACTIVITIES 2025 2024 Unrestrlcted R•strlrted Total Unrestrlcted R•strlrt•d Total Hospice KH Promotion5 Ltd KH Retai l Ltd 30.688 4,419.327 340.388 96.639 4￿87,042 30,688 4,419.327 340,388 96,639 4,887,042 51,791 4.625,113 325,297 88,197 5,090,398 51.791 4,625,113 325.297 88.197 5,090,398 Sale of Donated Good5 GIftAid on Saleof Goods Fundraising Events Group KH Promotions Ltd KH Retsil Ltd Sale of Donated Good5 268.340 4,419.327 340.388 96,639 5,124,694 268,340 4,419.327 340,388 96,639 5,124.694 305,840 4,625,113 325.297 88,197 5,344,447 305,840 4,62S,113 325.297 88,197 5,344,447 GiftAid on Saleof Goods Fundraisin8 Events INCOME FROM CHARITABLE ACTIVITIES Income from charitable activities incorporates receipts of income from statutory a8encies, whether as grants or contracts and fees recelved for the provision of the Charity's services. Trustees are pleased to report that the Integrated Care Board have contlnued commitments to fund the Hospice's work. 2025 Total 2024 Total Unf•strlcted Restrlrted Unr•iirlrt•d R•strSa*d Hospl Integrated Care Board Grants Pension Rebate National Health Servlce Engla nd Capital Grant NHS England Prison Services Contract Specific contract Income Staffoid Borough Council Other Fee Income Incom• from Ch¥lt•ble ActhAtle$ la l 1,245.063 1,245,063 27,046 1,224.257 1,224.257 26.591 27,046 26,591 Icl 98,012 98.012 29,457 120,799 29,457 120,799 3.500 7.938 1,531,815 16,073 86,873 16,073 86.873 3,500 17,620 3,500 7,938 1 256 501 3.500 16,121 275 J14 1,229 256 Group HospSce- as above Embrace Qualitycare Group Income from Charltable Artl¥ltlts 1.256.501 1,256,501 275.314 1,531.815 1,229,256 145,658 1,374,914 310,676 310.676 275.314 I,531￿15 1,539,932 145,658 1,685,590 Katharne H<ws• H¢yl¢e ¢onsolidotedrfnanClalstaténMntsyur•￿Mar¢h2O2s Page 45

Katharine House Hospice Notes to the Financlal Statements For the Year Ended 31 March 2025 {ContlnuedJ INCOME FROM CHARITABLE ACtIVlTIES Icont.) lal A one year recurrin8 conditional grant the value of which is derived annually. Ibl The Hospice is in receipt of an annual rebate from the Department of Health, paid through the Integrated Care Board IICBI. to cover the increased costs to the employer of the NHS pension scheme. Icl The Hospice was in receipt of £98,012 as part of the Hospice UK'S distribution grant from NHS England to be spent on capital works. This is the first of two tranches. The second tranche Is for 2025126 and £75m will be distributed to hospices. Idl A contract with NHS England for the prov15ion of in-reach service5 to HMP Stafford and HMP YOI Drake Hall for prisoners at end of life. lel Staffordshire and Stoke-on-Trent payments for named patients who received sen4ices delivered by the Hospice beyond the intentSons of the primary grant. In A one year recurrin8 se￿iCe level agreement. Igl The main object of the Charity is to provide home care. day care and inpatient care to people in mid-Stafford5hire in need of specialist palliative care. The Charity makes no charge for the provlslon of these servlce5. A sub51diary object is to provide trainin8, education and other resources for those involved in the provision of specialist palliative core servlces. To this end medical and nursing students from universities have paid placements at the Hospice. In addition the Hospice ha5 received non-recurrin8 Rrants from local councils for specific objectives, as described below. 2025 2024 Brocton Parish Councl I for I PU service Brocton Pari sh Councl I for Lymphoedema equlpment Cannock Wood Parish Counci I for Hospice At Home servi ce Ecclesha I I Parish Council for IPU service Ecclesha I I Parlsh Council for Lymphoedema equipment Gnosall Parish Councll for IPU service Ingestre with Tlxall Parish Counci I far I PU service Rugeley Town Counci I for Therapy & Wellbei ng Centre 70 loo loo 456 250 soo 300 44 500 INVESTMENT INCOME All Investment income is unrestricted and comprises: Company 2025 Group 2024 2025 2024 Bank interest Interest from i nvestments vidends from portfolio Dividends from liquidity fund Mi sc income from l iquidity fund 38.605 703 17.608 188.316 15,490 18,080 20,465 111,322 11,687 177A144 38,605 703 17,608 188,316 15,490 18,080 20,465 111,322 11,687 177,044 245232 245,232 Katharine Hou¥¢ Hosw¢e ¢onsolld•t•dfin•nchlstatem•ntsyearendMarch 2025 Page 46

Katharlne House Hospice Notes to the Financial Statements For the Year Ended 31 March 2025 (Continuedj OTHER INCOME 2025 Total 2024 Total Unrestrlrted Restrlrted Unregtrlded Re51rlcted Hospice Mlscel laneous 3.996 3,996 23,277 23277 533 23,810 3.996 3J96 533 23.810 Group Miscel laneous 3.996 3,996 3,996 3,996 23,277 23277 S33 533 23,810 Katharine House Hospke ¢onsOlidat￿rl￿an£1als1a¢•Il•fitsy•aré￿dmarCh2O2s Page 47

Katharlne House H05pIc• Notes to the Finan¢lil St•tem•nts Forthe Year Ended 31 March 2025 fcontlnuedj & expENSE ANALYSIS l¢catd IAtknn ￿PPort Co#1 2025 Tot•1 Olh•rCoiii f•rt 2•24 Tgt Ilol• st Dlr•rt St•ff l•tlon Suppwi C•rti QMQF PA15111G FUFIDS J9.575 1.796 al,J55 69,414 IB7,264 347,151 1$6,IY9 39,174 1,IS1￿19 1,796 63.IlS 66.120 25).163 294.669 ).41),630 Oiher W•d1￿•¢￿vIlle￿ InVe5tmeThi￿n￿Yrn￿1tts Z7 161 $41 J Jiiiy•s fjr•up 39.$75 1.796 11.355 69.414 260,793 186.879 I￿54,?71 39.J74 1,309,724 4.086 57 11S1 $14 1.796 66.810 194.669 3.661.710 Othertrèdb￿•cwVI%1t5 InV•stm•itm•D•i•m￿t11 2.101.963

,149.533 J• Jji 11 ISI ￿0? 4 201 1•1 41 COMOF CIIAftWAMIAcnvnx3 877,132 ,?63 4IS.673 4.301.839 175 $68 46192• 2719905 77 2.625.611 637.666 69.268 3h04,879 fjo¥wn•nc• 73 619 19 65$1J4t ￿6• 401 PatsMtc•re Go¥ern4nce 70,783 41S,67J 4,301.8)9 175 561 77 3.¢￿2.559 84.284 676.SS1 69.268 4.100.703 3• 43 693911 ANALY5150FWEN5ES B￿E(N FUF4DS 14> All txpenjy Incurred ￿ThrIllI￿[Unds •nd•ovoTn4ncp•ril¥kmframunTttiil¢tsd Ordttlin4t•d lundi ltsl P¥tyint¢ir•oKponiN 4r•4n4lys•d uhT•stil¢tsdldsi￿It￿ lundi 4ndr&trl£l￿fu￿dl li lolloYA.' qftyjp 1015 2014 11125 1024 LhlroJtrlctodlddiAhit Rutri¢ted 4,U98,869 4.098.869 370 530 77 4.019.505 4 477 407 4 252607 ge48

Katharine House Hospice Notes to the Financial Statements For the Year Ended 31 March 2025 (Continued) ALLOCATED SUPPORT COST EXPENSE ANALYSIS Staff Costs Other Depre¢- Costs l•tlon 2025 Tot•1 Staff Coslj Other Costs Depre¢- lation 2024 Tot•1 Support functions 578,087 231,547 15,972 825fi06 449,731 260,378 12,440 712549 578.087 231.547 15.972 825,606 449,731 260.378 IIA40 722.549 Alloc4tloTrs io.. Patient Care 415.673 352,322 Governance 53,255 50,244 Fundralsing Sale of donated goods 69,414 66,820 287.264 253.163 825,606 722,549 10, NET INCOME Net Income Is stated after char8in8 the followin8 Items to the Income and Expenditure Account. Hospice Group 2025 2024 Z025 2014 Auditor's remuneratlon Depreciation of tangible fixed assets Amortisatlon of intsn8lble fixed assets Profit on dl sposal of flxed assets Operati n8 lease rentals Payments to Trustees Tru5tee5 expenses Trustee indemnity Insurance 18,105 169,886 16,600 147,338 18,7SS 169,886 17,860 147,338 15001 327,208 315.563 327.208 315,563 2,531 1.987 2,531 1,987 11. TRADING 5U8SIDIARIES Katharine House has 4 subsidiary tradin8 companles KH Promotions Llmited 03295776 ran a society lottery on behalf of the Charity. ThSs lottery operatlon was transferred in June 2022 to a third party - Local Hospice Lottery. The Local Hospice Lottery splits out the funds to various charities In the form of donations of which are received within the Hospice's accounts. Katharlne House Retall Llmited 03949314 carries out tradin8 activity. including eBay, house clearances. collection and delivery seryices. Embrace Quality Care Limited 08050417 is a care agency meetin8 the core objectives of the Charity, but charglng for its services. This became dormant at the beginnlng of 2024125 and was dissolved on 15 April 2025. KHH Development Limited 08120430 provided administrative and financlal support to other charities. This became dormant at the beginnin8 of 2021122 and was dissolved on 5 November 2024. A summary of the results of the subsidiary companies of the Charity are set out in this note. Accounts have been approved by the directors of these companies and will be filed with the Registrar of Companies. K&thanne Hous• Ilosplce ¢ons•Iida¢￿fin8ftc1alsralernentsyearena1Iar¢h 2025 Pa9e 49

Katharine House Hosplce Notes to the Flnancial Statements For the Year Ended 31 March 2025 Icontinued) 11. TRADING SU8SIDIARIES (Cont.) KH PromotionsLtd 2025 2024 KH Retall Ltd 2025 2024 Turnover Di rect operatln8 costs Net recharges to Kathari ne House Hospice 268.340 1256.123 18.471 305,840 1267,8701 19.790 Gross Profit 30.688 57,760 I ntere5t receivable Taxation 15.9691 Net proflt before Glft lid Di 5tribution under Gift Al d to Katharlne House 30,688 51,791 130.6881 151,7911 Retained in s ubsidla ry underts king Retained earnin8s brought forward Retalned earnlngs carrled forward The aggregate of the assets, lia bil ities and funds at 31 March was.. Fl xed assets Current assets 63,231 163.131) 65,331 165,2311 285,549 1285,5471 318,009 1318,0071 Currentllabllltles Tot•1 assets loo loo Share capital loo loo Funds loo loo Embra¢e Quality Care Ltd 2025 2024 KHH Development Ltd 2025 2024 Turnover Direct operati ng costs 310,676 1415,8241 Retained in subsidiary undertaking Reta ined ea rnl n85 brought forward 1105,1481 1317,9691 Retalned •arnlnis carrled forward 423 117 Thea88re8ateof theassets. liabilities and funds at31 March was: Current assets 10,190 1428,3071 (418.1171 500 Current1Sabilltles Total assets 500 Share capital Retained earni ngs Fund5 5,000 1423,1171 (418,1171 500 500 Ka¢h•nneHouse H•spke c&wNilidatedfinancialJtatem¢ntsyeorendAlarch 2025 Page 50

Katharlne House Hospice Notes to the Financial Statements For the Year Ended 31 March 2025 (Continuedj 12. EMPLOYEE NUMBERS AND COSTS The number of staff and whole time equivalents employed by the Charity. analysed by function was.. Companv 2025 Z024 Average Employees 88 Whole ti me Equlvalent 61.50 Average Employees 75 36 Whole lime Equlvalent 55.63 Care services Support and overheads Income 8enerat5on 46 26.01 24.44 112 72.18 114 73.28 246 159.69 225 153.35 Group 2025 2024 Average Employees 88 46 Whole time Equivalent 6150 A¥era8e Employees 94 Whole ti me Equtvalent 71.01 Care services Support and overheads Income 8eneratlon 26.01 36 24.44 117 77.18 119 78.28 2S1 164.69 249 173.73 The costs of employment were; Companv Group 2025 2024 2025 2024 Salary National Insurance 5.379,928 461,727 302,287 6,143,942 4,665.764 374,818 251,548 5,292,130 5,480,041 469.161 305,692 6.154￿94 5.109,459 404,423 264,351 5,778,2J3 Pension 8ou8ht.ln stsff 221,113 6J65,055 201,165 221,113 201,165 5,493.295 6,476.007 5,979,398 13. REDUNDANCY COSTS The Group made statutory redundancy payments amountlng to £10,438 {2024.' £9,607) with respect to 3 cases 12024.. 4 case51. 14. EMOLUMENTS The number of staff whose emoluments during the year exceeded £60,000 was.. Companv 2025 Group 2024 2025 2024 £60.001- £70.000 £70.001- £80,000 £80.001- £90,000 E90,001- EIOO,000 The 8ross cost of the Executive Team responsible for running the group of companies lincluding all emoluments, employer's national insurance contributions. and employer's pension contributions) was £450,228 12024: £379,940). There were 5 employees and I non-employee on the team12024.. 4 employees and I nor)-employeel. Katharfne House Hospl¢e consolldat•dfinancialstatementsyearendMar<h2025 Page $1

Katharlne House Hospice Notes to the Financial Statements For the Year Ended 31 March 2025 {ContinuedJ 15. PENSIONS The Hospice makes provision for employees, pensions in accordance with the Memorandum of Association and its legal obligations. The Hospice does not operate its own pension scheme. but contributes to schemes as follows.. a) NHS Deflned Beneflt Scheme Employees who are members of the NHS pension scheme. if eligible, moy contlnue to contrlbute to this scheme, Employer contributions are 14.38%. Employee contributions range from 5% to 13.5% dependent upon the level of their notional full-time pensionable pay. This scheme is an unfunded defined benefit scheme that covers NHS employees. General Practitioners and other bodies allowed under the direction of the Secretory of State in England and Wales. The scheme is mana8ed in a manner that does not make it practical for the Hospice to ascertain its share of the assets and liabilities under the scheme and the scheme is therefore treated in the accounts a5 if it were a defined contribution scheme, with the cost bein8 taken as the contributions payable durin8 the accounting period. bl Standard Llfe Grouplstakeholder Penslon Scheffle The Charity. in response to the Stakeholder Pension kheme5 Re8ulations 2LThJO. opened a scheme in the year 2000 for eli8ible employees to join the Standard Llfe Group Pension Scheme. The Charity matches employee contributions up to 7%. From l April 2015 Standard Life closed this scheme and it is not available ta new employees. Thi5 scheme is a defineé contribution scheme. cl Natlonal Employment Savln8s Trust INESTI Eligible employees who are not in either of the two schemes above ère automatically enrolled into the NEST scheme. The automatic enrolment is done at the statutory minimum lat present 5% for employers) but employees can increase their contributions and the Charity will match these up to 7% of eligible earnings. This is a defined contribution scheme. Numbers of staff and contributions to the different schemes are.. 2025 2024 Avera8e Number Employer Contrlbutlon Averase Numbef Employer Contrlbution Companv NHS Standard tife NEST 22 12 114,113 40,169 148.005 302287 21 12 165 97.771 36.280 117.497 251,548 155 189 198 Grotsp NHS Stsndard knfe NEST 22 12 160 114,113 40,169 151,410 305.692 21 12 186 97.771 36.280 130.300 264,351 194 219 Katharfn• Hous• 11osw.re ¢ansohda¢edfinanoals¢at•nwntsyearendMarch 2Q25 Page 52

Katharine House Hospice Notes to the Financial Statements For the Year Ended 31 March 2025 (Continued) 16. TANGIBLE FIXED ASSETS Equipment. Furniture and Fixtures Land and Bulldings Motor Vehide$ IT Equlpment Tot•1 COMPANY C¢)st At l Apri12024 Additions 3,667.450 401,751 120,768 113.085 4,303,054 334,533 18,447 45,458 398,438 Disposals At31 March 2025 4.001.983 420,198 166,226 113A185 4,701A92 Depredatlon At l Apri12024 938,706 340,946 87,042 51,903 1.418,597 Charge for the year 110,344 25,017 14,107 20,418 169,886 Oi5posals At 31 March 2025 1,049x150 365,963 101,149 72321 1,588A83 N*t Book Value At 31 March 2025 2,952,933 54,235 65,077 40,764 3,113,009 At l April 2024 2,728,744 60,805 33,726 61,182 2,884,457 GROUP Cost At l Apri12024 3,690.652 401,751 120,768 204.085 4,417,256 Additions 334.533 18.447 45.458 398,438 Dlsposals At31 March 2025 4,025.185 420,198 166,226 204,085 4,815,694 Depredation At l April 2024 961,908 340,946 87.042 142.903 1.532,799 Charge for the yea r 110,344 25,017 14.107 20.418 169,886 Dlsposals At31 March 2025 1x172252 365,963 101,149 163321 1.702fi85 Net Bookvalue At 31 March 2025 2,952.933 54.235 65,077 40.764 3.113,009 At l April 2024 2,728,744 60,805 33,726 61.182 2.884,457 Katharine House Ilospi¢e cansolidaledfinan¢lalstat•mentsyearendMar¢h 2025 Page 53

Katharine House Hospice Notes to the Financial Statements For the Year Ended 31 March 2025 (Continuedj 17. INTANGIBLE FIXED ASSETS Software Total COMPANY Cost At l April 2024 Additions 73,350 73,350 Disposals At 31 March 2025 73,350 73350 Amortlsatlon At l April 2024 Char8e for the year Disposals At 31 March 2025 Net Bookvalue At 31 March 2025 73,350 73,350 At l Aprll 2024 GROUP Cost At l April 2024 Additions 73,350 73.350 Disposals At 31 March 2025 73.350 73350 Amortlsatlon At l April 2024 Charge for the year Disposals At 31 March 2025 Net 8ook Value At31 March 2025 73,350 73.350 At IApril 2024 Kathanne House Iloswce ¢•nsolidaterffin•ndalstatementsyearendMarch2025 Page 54

Katharlne House Hospice Notes to the Financial Statements For the Year Ended 31 March 2025 fcontinued) 18. FIXED ASSET INVESTMENTS- Company and Group 2025 2024 At 31 March lnvestff￿nts were held as: Volare bala nced brldge fund 626,388 628,776 Total Invested funds 626388 628.776 Cash held for i nvestment 147 739 Total lunds In Investment portfollo 626,535 619,515 2025 2024 LSsted InvestffleThts Marketvalueat31 March 628.776 571.019 Less Dlsposal s at openin8 book value (proceeds £3.9001 d acquisitions at cost 13.7051 18111 17.605 20.455 Net Ilossl/gain on revaluation at 31 March 116.2881 38,113 Mark•t v•lu• •t 31 M•r¢h of Il$t•d in¥•strnents 626,381 628,776 Hlslorlcal cost at 31 Marth 619,386 604,486 All investments are held in unrestricted fund5. The net gains and losses on revaluatlon are based on the market value ofinvestment provided by LGT Wealth Management UK LLP who manage the fund on behalf of the Trustees. FIXED ASSET INVESTMENTS - Company The Company's Investments at the balan¢e sheet date In the share Capital of unlisted companles which are registered in the UK comprising.. %of Companv shJTeholdl rezlltrntlon h•ld by KH no. Hosplce 2025 2024 KH Pfomotions Limited Katharine House Retail Limited Embrace Quality Care Limited KHH Development Limited 03295776 100% 03949314 100% 08050417 100% 08120430 100% loo 100 500 602 102 All investments are valued at cost except Embrace Quality Care Llmited and KHH Development Limited which are valued at fair volue a5 at year end. These entities dissolved in November 2024 and April 2025 respectively. Results for the year are shown in note 11 and are included in the consolidated accounts. Katharine llouse HospKe consolldatedfinanc•alstatenwntsyearendAlarch 2025 Page SS

Katharlne House Hosplce Notes to the Financial Statements For the Year Ended 31 March 2025 (Continued) 18. FIXED ASSET INVESTMENTS (Cont.) The write off relating to Embrace Qual lty Care Limlted is as fol lows. Embrace Quality Care Limited has now been dissolved. 2025 2024 Embrace Quality Care Limited written bacV(write offl 3,845 (s,0001 19. DEBTORS Cornpanv 2025 Group 2025 2024 Z024 Amounts owned by subsidlary undertaklngs receiva ble wi thin one yea r Trade debtors NHS pharmaceutical suppl i es HMRC. tax and social security Other debtors Accrued legacy Income Prepayments Deposit5 provl ded 241,964 54,643 15,088 262,150 7.225 79,557 202,084 3,875 327,414 63,532 5,430 242,082 5,155 200,102 164,955 3,875 54,643 15,088 264,645 2,225 79,557 202,084 3,875 68,488 5,430 242.082 1,791 200,102 164.955 3,875 866,586 1,012,545 622,117 686,723 The intercompany accounts are the balance of funds to be transferred to the HospSce in respect of Glft Ald payments for the year. The balances are payable on demand. In view of the nature of the balances. interest Is not char8ed by the Hospice on the outstanding amounts, nor has It taken securlty for the balances. 10. STOCK Gr4W> 2025 2025 2024 2024 Boutht In ￿d5 1.524 1.186 21. CREDITORS Amounts due In under on• year Company 2025 Group 2025 2024 2024 Note Payments on account Trade creditors HMRC Accruals Deferred i ncome Other creditors 52.859 353,158 91,134 353,865 15,477 5,755 53,126 142,908 70.140 203,226 13.839 9,965 318,387 91,134 346,544 15.477 5,755 125,498 70,140 197,955 13,839 5,080 122 777297 412.512 872,248 493.204 Kathwlne House Hoswce ¢onsolldatedfin4ncialstatementsyearendMarch ZQ25 Page 56

Katharine House Hospice Notes to the Financial Statements For the Year Ended 31 March 2025 (Continued) 22. DEFERRED INCOME Income deferred in accordance with FRS 102 and included in accruals and deferred income was: Balance at l Aprfi Balance at 31 March Released Deferred Refundable event Income Lottery licence fee 13.631 13.631 13 I3￿9 15A77 For21f24 Balaft￿ at IAprfl Balance at 31 March Released Deferred Refundable event income 40.519 40.519 13,631 13.631 Lottery Ilcence fee 40￿ 405 13A39 23. PROVISIONS Company 2025 Group 2025 2024 2024 Di lapi dation provlsion 102,833 102A33 loo,000 loo,000 102,833 102,833 loo.000 loo,000 24. DEFERRED TAXATION This is shown in the 8roup only and relates to Katharine House Retail Limited.. For 2025 Balance at Balance at 31 Marth Released Attrued Deferred Taxation Provision For 2024 Balance at l Aprll Balance at 31 Marth Released Acuued Deferred Ta xati on Provisi on 5,969 5,969 Ka¢h•4ne Hous• Ilosplce ¢onsolldat•dfinanc•alstatenmitsyearendMarch 2025 Page 57

Katharine House Hospice Notes to the Financial Statements For the Year Ended 31 March 2025 (Contlnuedj 25. FUNDS Unrestrlcted Funds - Designated and General Fund$ General fund5 are freely available for the Trustees to apply for its charitable purposes, but include fixed assets that are not expendable. The Trustees have established seven designated. reserves from within the free and unrestricted funds available. The primary purpose of these funds 15 to asSlSt the Charity in managing it5 reserves and financial risks. particularly in the light of known future commitments. unexpected failure of income and larger one off items of e¥penditure. Implementation of a new clinical system is scheduled for June 2025. with implementation and training costs expected to be spent in 2025126. The renewal of IT fund relates to a rolling programme of renewals of Pcs including hardware and software upgrades. The tralnln8 and development fund ensures that existln8 commitments to staff development can be funded. This has been increased due to an additional need for clinical trainin8 and also learnin8 and development support bein8 out.sourced. The renovatlon in the Norton Bridge Retall shop has now been completed. The repairs and renewals relates to a small number of retail shops requlring refurbishment durlng 2025-26. The acquisition and refurbishment of the new Retail Superstore was completed in the last quarter of the flnancial year. The renovation and refurbishment of the Inpatient Unit 15 scheduled for 2026-27 and it Is anticipated there is proportion of this expenditure that will be funded by the general reserves. Restricted Funds The capital and equipment fund5 are primarily for the purchase of items of equipment or refurbishments. Some have small cash balances which are used in the maintenance of the asset. The Hospice was in receipt of £98,012 35 part of Hospice UK'S distribution of a £25m grant from NHS England to be spent on capltal works. This is the flrst of two tranches of fundin8. The Hospice used these funds for the followin8 C3Pltal works.. The development of the Systmone cl Inical system The provision of l a ptops for the hospice at home team The erection of a car pa rk barrier to prevent unauthori Sed parki ng £73.320 £19,620 £13.377 The service funds are to operate specifled services and are expected to be spent within 12 months. Expenditure against these funds is only for direct Costs of running the services, not for recharges or overheads. The other restricted funds are for use in the provision of aspects of seplices or for provisions not speclfic to a service, for example: patient comfort funds, funds for the upkeep of the garden and other areas and funds to provide training and development for staff. Kathanne.House.H0spice consolidated hnanclalstatem•itsyearendMarch 2025 Page $8

Katharine House Hospice Notes to the Financial Statements For the Year Ended 31 March 2025 (Continued) 25. FUNDS (Cont.) COMPAP4Y Fw ihe Y•r Ended 31 Marth 2025 I￿emMent G•lns I Tr•nsf¢r (Losses) from I Itol and Genefal Expendliur• Prvvl$lons Fund Openlni Fund V•lu Ooslng Fund Valu• Funds Inuxn• Gèneral Fund Dosnat•d Funds Implementstion of new clinical Renewal of IT Tralni n8 and Development Noiton Biid8e Renovation Repairs and Renewals Acqui5tionlRefurbishmeni of Property Renovation/Refurbi5hmeni of IPU 8,980,9$5 8,641,901 P.739,2171 17248} 1395.6911 9.480.700 130,000 25,000 36,000 15.000 60,000 330,000 173,0001 111,3001 35.141 Iis,0001 53,665 1.699 57,000 9,000 40,000 14.7001 131,1411 IS3.6651 1331,6991 60,000 soo 000 666,000 S96￿00 1421,2051 491,205 Aestrlcted Funds Capital and Equlpment Funds NH5E Capltal Grant Servlce Funds Other Restricted Funds 45,624 23.889 98.012 235,355 7.233 364.489 12S.7291 130SI 198.0121 43,479 12,604 1243,2811 11.516 1280.5261 8 440 948 4,678 104,661 195.5141 93,111 9 681617 9.006390 7,248 io 39 For th• Year Ended JI Marth Z024 In¥sim¢ni Galns / Trinsl•r IL?ssesl from I Itol and Gènefal In￿m* Exp•ndltur• Provlslons Fund Openlni Fund Valu C1051ni Fund Value Fundi General Fund Desbgnated Funds Implementatlon of new cllnlc•l Renewal of IT Traini ne and Development Renovation/Refurbishment Therapy Norton Bfidge Renovatlon Replacement of Telephone Equipment Repairs and Renewals Ret¥S1 premises dilapidations Acquistion & Refurbishment of 6,561217 8.755ASO 15J95.148) 172.0461 1268.9181 8?80,9S5 2S,000 30,000 66,000 SS,000 105.000 15,265 10.070 126.8761 20.965 12971 210.804 iioo.0001 33.987 268.918 130,000 25,000 36,000 120.2651 140,0701 128,1241 15,9651 16.7031 1225,8041 15,000 7,000 75,000 100,och) 1300.000 1,658AIQQ 60,000 1,003,987 {1330,918) 330,000 596.000 R•strlrted Funds Capital and Equipment Funds NH5E Capital Grant Service Funds Other Aestricted Funds S5,043 49.875 159.2941 45,624 13,805 30,882 99,730 159,689 18,470 218￿34 1160,8901 12,604 46,434 104,662 {223.1021 72￿46 9 681.617 K•thanne HOUAI Hospice consolld•todfinancialstatementsyearendMarch2025 Page $9

Katharlne House Hosplce Notes to the Financial Statements For the Year Ended 31 March 2025 (Continued) 25. FUNDS {Cont.) GROUP For the Year Ended 31 March 2025 Investment G•lns I Tf•nsler {Lossesl from I Ito) •nd General Provb510Th5 Fund Openln8 Fund Value aoslng Fvnd Value Funds Income Expendlture Genèral Fund 8.980,955 8.879,SS3 17,976,869) 112.2481 1395,6911 9,475,700 D•sthnatad Fundi 596,000 1421,2051 491.205 666.000 Restrlrted Funds 104,662 364,489 1280,5261 195.5141 93.111 .681617 9244.042 .678,600 12248 10,234.811 For the Year Ended 31 M•rch 2024 In￿Stment Galns I Tr•rtsf•r {Lossesl from I Itol •nd General Exp•ndltur• Provlslon5 Fund Openln8 Fund Value Clo￿Ni Fund Valu• Funds Income General Fund 6.S61,217 9,320,57S 16.6S9,OS21 27,133 1268,9181 8,980.9SS D•ll￿at•d Fundj 1.658,000 11,JJu,yi¥i 2611.91¥ 596,000 Reslrlrted Fund5 99,730 228,034 1223,1021 104,662 8318 947 9J48.609 9 681617 26. FINANCIALCOMMITMENTS Capltal Commltments - Company and Group The Charity hès no capital commltments at 31 March 202512024.. none). Operatlng Lease Commltments The Company and Group hold leases for retail outlets, office equipment and software subscriptions. The future outstandin8 commltments broken down by time periods are shown below with prior year comparatives.. <1 year 1-5 year5 +5 years Company & Group as at 31.03.25 Cornpany & Group as at 31.03.24 336,786 176.522 655,991 147,262 The total operating lease commitments (this include5 leases that are out of lease calculated at 6 months, liability) are.. Total Cort of Lease Company & Group as at 31.03.25 Company & Group as at 31.03.24 1.869.497 441.564 Ka¢hanne H*W5e Ilospk• consdidatedfinanaalst•t•mentsyearendMarch Z025 Page 60

Katharine House Hospice Notes to the Financlal Statements For the Year Ended 31 March 2025 (Continued) 26. FINANCIAL COMMITMENTS (Cont.1 There were no other operatin8 lease commitments at 31 March 202512024.. none) that exceeded one year. 27. RELATED PARTY TRANSACTIONS During the year some of the Trustees, senior mana8ers, and employees of all Group entities made donations to the Charity, played the lottery run by Local Hospice Lottery, and donated good5 to and bou8ht from the Charitrfs shops. All these transactions were conducted on an arm's length basis in support of the Charity. All donations made by the Trustees were unrestricted. Access to the Hosplce's care services is based on the assessment of clinical need and the availability of provision. It IS Possible that relatives of Trustees, senlor managers. and employees of all Group entities may have accessed the Charity's serrfice5, but this is not separately identifiable and therefore not disclosed. 2025 2024 Carollne Bruckner Holt Imédkal Dirèrtor of KJtharlne Housè Hosplcè), Zla Din (Tr￿￿e? of Kathariné Housè HospSc•l, Rlthard Muihes (Trustee of Katharlne House Hosplcel & Jenny Clark• (Trusiee of Katharlne House H05plce) County Hospital and University Hospltals of the North Midlands Iformecly Mid Stsffordshire Hospital s NHS Trust) IrelJtionshlp.' Employees) Pfovl slon of pharmacy services and drug suppl les Provi 5ion of pal liative medica I consultant sessions Contract for the provlslon of octupational and phy51otherapy srvlees Provlslon of l-Portal Other services 85,876 149,980 55,699 9,850 3,612 81,969 136,650 37,707 9,850 Out5tandln8 Credltor and Attruals Balance as •t 31rt March 189,365 56,310 Helen Elizabeth Reeves (Truslee of Katharlne House Hosplcel Care Quallty Commlsslon (relationship.. Employee) Community healthcare annual regulatory fees Out5tandlnR Credltor Balance as at 315t March 1,933 Rl¢hard Soulsby (CEO ol Katharine Hous¢ Hosplce) AL Services Irelationshl p.. Spouse is proprletorl Spot purthaslng of counsellin8 services Outstanding Credltor Balance as at 31st Mar¢h 1,680 525 2,695 175 28. POST BALANCE SHEET EVENTS Embrace Quality Care Limited 08050417 was dissolved on 15 April 2025. New clinical system went Ilve on June 2025. Given notice to landlord with Collectables shop to move premises. it is anticipated that this will generate a dllapidation cost in excess of £50k which has been provided for within the accounts. A new retail store in Ru8eley has been opened in April 2025. K•th•*i• House Hospi¢e eons•Nd•tsdfiNnelo/statementryearendMarch 2025 Page 61