OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2025-03-31-accounts

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Company registration number: 02702815 Charity registration number: 1017706

GROUNDWORK NORTH EAST

(A company limited by guarantee)

Annual Report and Financial Statements for the Year Ended 31 March 2025

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Contents

Reference and Administrative Details 1
Chairman's Statement 2
Trustees' Report 3 to 15
Independent Auditors' Report 16 to 18
Consolidated Statement of Financial Activities 19
Consolidated Balance Sheet 20
Balance Sheet 21
Consolidated Statement of Cash Flows 22
Notes to the Financial Statements 23 to 44
Comparative Consolidated Statement of Financial Activities 45

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Reference and Administrative Details

Trustees A R Thurston J E Pritchard D C Pearce H Simmons A J J Anderson M F Schooler J Davison S F Cole M Houston (resigned 11 July 2025) S Neill (resigned 19 June 2024) J Parkin (resigned 19 June 2024) Z Richardson M W Orde (appointed 19 March 2025) R Crooks (appointed 19 March 2025) J P K Atherton (appointed 19 March 2025)

Key Management Personnel S Roberts, Chief Executive Officer Heatherington, Director of Finance & Corporate Services (resigned 5 July 2024) L Gardiner, Head of HR L Locke, Head of Business & Development Registered Office 14 Parsons Court Welbury Way Newton Aycliffe County Durham DL5 6ZE The charity is incorporated in England and Wales.

Company Registration Number 02702815 Charity Registration Number 1017706 Auditor Azets Audit Services Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS

1

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Chairman's Statement

In 2024/25 Groundwork North East & Cumbria continued to deliver against the five priority areas within our 2023 - 2028 five year strategy:

  1. Protecting & Enhancing Green & Blue Spaces

  2. Delivering Green Skills & Jobs

  3. Promoting Greener Living

  4. Empowering Communities

  5. Developing new trading activity to provide additional income to support our charitable objects.

The Trustees would like to express their gratitude and thanks to our Groundwork staff and volunteers for the way in which they have continued to develop and deliver successful programme of activity in line with these strategic priorities.

We ended the year with a consolidated surplus of £288,974, which is a reflection of the success of our programme of projects and which provides a foundation for continuing delivery in future years. However, the true measure of our success is the impacts we made as we fulfil our charitable objects. Key achievements are shown in the Achievements and Performance section of the Trustees’ report and highlights include:

  1. Supporting 3,631 households with free, impartial energy advice

  2. Supported 1,144 individuals to transition into education, training or employment

  3. Implemented 2,127 biodiversity improvement actions including: addressing habitat and biodiversity loss

  4. 259 sites improved, including public parks, community areas and schools

  5. Generating a surplus of £168,463 from our trading activities to support our charitable objects

As we developed and delivered our programme, we worked with a number of partners across the public and private sectors as well as continuing our partnership with our sister Trust, Groundwork South and North Tyneside and playing an active role in the wider Groundwork Federation.

I would like to thank my fellow trustees, who give their time so generously to support our organisation, and Groundwork’s employees and volunteers who continue to inspire through their commitment and creativity: the greatest strength of any organisation is its people.

Andrew Thurston Chair

......................................... A R Thurston Trustee

2

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Trustees' Report

Report of the Trustees

The trustees are pleased to present their Annual Report, together with the consolidated financial statements of the charity and its subsidiaries for the year ending 31 March 2025, which are also prepared to meet the requirements for a directors’ report and accounts for the Companies Act purposes.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 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.

Our purposes and activities

The charity’s purposes and activities are set out below. The activities are undertaken to further the Trust’s charitable purposes for the public benefit. The trustees have complied with the duty under Section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charities Commission and the trustees have paid due regard to this guidance in deciding what activities the Trust should undertake.

The company’s charitable objects, as defined in the Memorandum & Articles of Association are:

What we do to meet our charitable objectives To achieve these charitable objectives we deliver a diverse range of projects and programmes across the North East and Cumbria, under one of our three strategic programme areas.

Our ambition is to build our visibility, our reputation and our resource base so that we can be a significant, radical force for driving change in attitudes, behaviours, places and prospects in the local communities that need it most.

3

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Trustees' Report

Our strategic growth areas over five years (2023 -28) are to:

These areas of focus each build upon the delivery and positioning achieved during recent years through our principle operational themes of: Nature based solutions, Energy Efficiency, Employment and Skills, Green teams and land management, Youth work and Health and wellbeing.

We will align our programme with emerging policy framework from central government and local stakeholders' strategies and plans. We will continue improving our own capability and resilience to ensure we are putting maximum resource into our front-line delivery and invest in the right skills to improve the quality of our services and management.

Our Volunteers

We are extremely grateful for the assistance of 1,611 volunteers (584 of these corporate volunteers and 380 professionals) who have been actively involved on a variety of projects, providing 20,128 hours of volunteer time, energy and skills to help us reach more beneficiaries and increase our positive impact on the environment.

Achievements and performance

Throughout the year Groundwork North East and Cumbria delivered a high volume of short and long-term projects. Short term projects are defined as those which last less than one year.

Creating better places

Revitalising our Estuaries : Funding from the Caterpillar Foundation has built on work initially carried out through Revitalising our Estuaries (ROE) - which was a rapid 18-month project that delivered habitat restoration and community engagement across six major river estuaries in northeast England. Caterpillar Foundation’s support allows us to build on ROE and enables us to deliver work against the following themes:

This programme has indirectly reached over 4M people, improved over 30 habitat areas and improved 9km of footpaths.

4

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Trustees' Report

Local Investment in Natural Capital: The LINC Pilot is a project aimed at enhancing the capacity of local authorities and partners in Northumberland to adopt a natural capital approach to economic growth. The initiative seeks to develop sustainable funding and investment strategies that combine public and private finance to support long-term nature recovery efforts, benefiting local communities, landowners, and businesses. As part of the pilot, the Borderlands LINC Steering Group has appointed GNEC to create an investment strategy for the River Wansbeck catchment. This involves collaboration with key stakeholders like Northumberland County Council, the Environment Agency, and The Rivers Trust to develop a funding plan that supports Nature-based Solutions (NbS), focusing on catchment regeneration, sustainable farming, and climate resilience.

Long Term goals include:

This initiative is a pioneering effort that aims to attract investment, improve farming resilience, and support nature recovery through a coordinated, strategic approach.

Helen Hornby, Programme Development Manager for Nature-based Solutions said: Some of our trialled Nature-based Solutions have been in place for 2 or 3 years now and are starting to show the results as they are colonised by seaweeds, algae and saltmarsh plants. ”

3 Together Big Local: For almost 10 years GNEC has been working with the 3 Together Big Local Partnership to make Easington Lane and Moorsley in Sunderland even better places to live. Local residents and supportive partners have had the autonomy to decide how a grant of £1,250,000 from Local Trust could be best spent in their community.

Over the years the 3 Together Partnership has carefully considered their communities needs and spent their money wisely. They have initiated a hugely successful community transport programme, constructed a skatepark, supported important local heritage initiatives, funded more than 60 community led projects and extensively supported the vulnerable through covid. March 2025 sees 10 years of exciting and rewarding work reach a conclusion, following a very busy 2024 when key projects were delivered. As the partnership winds down the focus is on leaving a legacy by investing in a fantastic new community building with over 300 users every week.

Elba Park : A park covering 52 hectares, situated on the outskirts of Sunderland. The park is owned by the Land Trust, which has appointed GNEC as the managing agent. Our team oversees the daily operations of the site and strives to achieve outcomes that align with the Land Trust's goals. Since the park opened to the community five years ago, several infrastructure improvements have been made. These include four picnic tables, five additional benches, 1,800 meters of new footpaths, and a 10-bay car park attracting 493 people to events and activities.

Choices Cumbria was a programme that helped 866 individuals overcome complex barriers to achieve their goals and pathways to employment. It provided tailored support to address challenges such as lack of confidence, social isolation, health issues and lack of work experience or qualifications. 209 economically inactive people were supported into employment. Participants said “I never thought I would feel as I do today after the help from Choices” and “This programme helped me get out of the house and I am more comfortable with new people.”

5

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Trustees' Report

Improving people's prospects

Back To Work: Through the UK Shared Prosperity Funds Back to Work offers employability support for local residents across Northumberland. The programme is delivered in collaboration with The North of Tyne Combined Authority and is dedicated to assisting economically inactive individuals in building confidence and developing skills, which supports them to move forward in their employment journey. This support includes:

This project has engaged with 124 individuals and supported 121 individuals with coaching and mentoring

Cumberland Futures: Supporting individuals who are economically inactive in Cumbria. The project has supported those who face barriers into employment, from low mental health, low resilience, long term unemployed, over 50s and NEETs.

The project has supported 47 people to improve skills such as job searching and 40 of these individuals completed the programme with a successful outcome.

Police and Crime Commissioner: A programme created through user-led activities to provide diverse and educational opportunities for young people. It provides support for those aged 11-18 years of age who are involved in, or are at risk of being drawn into serious violence, targetting hotspot areas across East Durham through detached youth work.

Youth workers have delivered 96 workshops as preventative work with groups around issues that most affect them such as violent behaviour or being a victim of violence. Lennon who is 15 years of age and who has participated in the workshops said “I feel more confident to make a positive change in my community and I’d definitely recommend these sessions to other young people.

Northern Directions: Provides opportunities for young people not in education, employment or training (NEET) and for those aged 16-24 to progress towards or into the labour market, further education or training. Free tailored employability and personal development packages are made available to a diverse range of young people, which supports them to overcome barriers.

The project last supported 282 young people, with 102 of these young people supported into a form of education, training or employment and a further 102 young people reported that they had improved mental health and wellbeing as a result of the programme.

Mary Blackwell project Manager said: “ Northern Directions is a project that I am honoured to be a part of. We have an incredible team who put the needs of the young people we engage with at the centre of delivery. This is shown in the results that are being achieved”.

The programme is funded to continue delivery into next year based on the impact achieved to date.

Promoting greener living and working

6

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Trustees' Report

Cadent Stary Warm Stay Well : Stay Warm, Stay Well provides much needed support for vulnerable households who are struggling with their energy bills. Through Green Doctor visits households receive practical guidance on energy saving, including behaviour change tips, as well as referrals to other local support services such as debt advice and food banks.

Funded by the Cadent Foundation and led in partnership by GNEC, the programme will invest £6m and support 14,500 households in communities across England.

The programme is a new wave of GNEC’s partnership with the Cadent Foundation, contributing towards 4,700 winter warmer packS to be distributed to households in vulnerable situations, providing warmth during the winter season.

Home Energy Advise North East: GNEC, in partnership with the Energy Saving Trust and Community Action Northumberland, are currently delivering the in-home support programme. This initiative provides free, expert advice on enhancing the energy efficiency of homes across the North East Combined Authority regions.

The project has 750 both hard-to-reach and hard-to-treat homes, specifically aiming to facilitate the installation of retrofit home energy improvements. The advice is managed by the Energy Saving Trust and delivered by GNEC and Community Action Northumberland (CAN), with guidance offered either in the home or at events.

Delivering on the project Rebekah Vickers, Green Living Coordinator said “It has been a beneficial project to be involved in, has strengthened our partnerships with the local authorities, and helped raise awareness of retrofit in our communities”.

Blue Influencers: GNEC, among 22 charities funded by the Blue Influencers Scheme, recruits young people (ages 10-14) to become ‘Blue Influencers.’ With support from Blue Mentors, they initiate social action projects to enhance their environments. In total 99 young people have participated in 48 different projects.

This initiative, from The Ernest Cook Trust, aims to empower underserved youth in coastal and riverside areas to address environmental issues while developing skills for future employment, building on the success of the Green Influencers Project.

A blue Influencer when discussing the programme said “I've learnt how to create tools and trinkets with biodegradable, sole to the Earth materials. I have realised how important water and river spaces are and how necessary they are to maintain. I have learnt how to help maintain blue spaces and how everyone can make some difference. Even if it’s is small like litter picking I have learned how important reducing plastic waste is and how it affects blue spaces and sea life more than ever.

Financial Review

The Trust continues to build a positive and robust balance sheet, increasing from £4,750k to £5,039k.

Our principal sources of funding were from the UK Shared Prosperity Fund, Environment Agency, Heritage Lottery and via Trading.

Consolidated cash balances increased in the year to £1,358,950.

7

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Trustees' Report

The Greenhouse business centre continues to house a range of tenants from start up to SME’s, as well as providing a high level of quality business meeting space. Occupancy rates have remained high despite concerns regarding changes to working practices including home working. Investment has been made to improve mobile phone coverage throughout the centre.

The Land of Oak and Iron Heritage Centre continues to grow in terms of engagement and turnover, establishing itself as a go to destination catering for a wide range of visitors all year round. Investment has been made to expand and remodel the servery to cater for increased footfall.

Some of our funders require details to be included in our Financial Statements, which is provided as part of note 23.

Investment powers and policy

Under the Memorandum and Articles of Association, the Trust has the power to make any investment which the Board see fit.

Reserves Policy

Groundwork NE & Cumbria Trustees and executive management team have reviewed the Reserves Policy and the Board has agreed that unrestricted reserves are required for the following reasons:

Financial impact of Risk:

Working Capital:

Commitments and long-term plans:

8

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Trustees' Report

The above needs for reserves must be balanced against the following factors:

Balancing the above and taking account of guidance published by the charity Commission, we have calculated a target Reserves value as £1,577k. This is a risk and cost-based approach;

  1. Financial risk - £916k

  2. Working capital - £441k

  3. Commitment to long-term plans - £220k

The current Reserves, as of 31st March 2025, is calculated as:

Total unrestricted reserves £1,597,552 Less tangible fixed assets (£392,997)

Total group free reserves £1,204,555

The Trustees and management will seek to achieve and maintain the target level of Reserves over the coming years.

The Trust maintains the following funds:

Restricted Funds Use of Funds

Designated Funds

9

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Trustees' Report

Going Concern

In the year to 31 March 2025, there was a net surplus in the year of £289k for the Group. General unrestricted funds showed a surplus of £316k. The Trustees have reviewed the Trust Business Plan for 2025 - 2026, targeting a surplus of £35k. The business plan is sufficient to secure the immediate future of the charity for at least the next 12 to 18 months. On this basis, we consider that the Trust is a going concern.

Plans for the future

The 2025/26 business plan has a projected turnover of £8.3M with a surplus of £35k. This has been structured around our five strategic growth areas as set out in GNEC’s Strategic Plan 2023-28:

Each growth area aligns with emerging policy frameworks from central government and local stakeholder strategies and plans, encompassing poverty, inclusivity and the environment. Each growth area also builds upon the delivery and positioning achieved through our principal operational themes.

10

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Trustees' Report

• Nature Based Solutions - We are committed to expanding and strengthening our nature based solutions to tackle environmental challenges, enhance biodiversity and create healthier, more resilient communities. Our approach includes:

o Restoring degraded landscapes o Enhancing urban green infrastructure o Improving water quality and flood resilience o Supporting community-led conservation

• Youth - We strongly believe that young people are key to shaping a sustainable future, and we are committed to expanding and strengthening our youth programmes. Our approach includes:

o Education and training o Youth employment support o Traditional youth work

• Employment - We recognise that a strong, sustainable economy must be inclusive and green, ensuring that all individuals, especially those facing barriers to employment have access to meaningful work opportunities. Our approach includes:

o Delivering targeted employability programmes o Expanding green jobs and skills training o Working with employers to create inclusive opportunities o Supporting disadvantaged groups

• Energy Efficiency - We are committed to enhancing and expanding our Green Doctors Programme, providing in home, face to face support, helping individuals reduce their energy consumption and save money. Our approach includes:

o Expanding our geographical reach of the green doctor service o Developing retrofit skills o Delivering energy efficiency training o Engaging vulnerable communities

• Health and wellbeing - We recognise that access to nature plays a fundamental role in improving mental and physical health. Our ambition is to maintain and further develop our social prescribing activities, ensuring more people benefit from green spaces, structured support, and community lead wellbeing initiatives. Our approach includes:

o Nature Based social prescribing o Outdoor wellbeing programmes o Physical activity through environmental action o Community resilience projects

• Land Management - We are committed to protecting, restoring and enhancing the regions green and blue spaces to ensure they remain vibrant, accessible and resilient for both people and nature. Our approach includes:

o Managing parks, woodlands and community green spaces o Delivering community led conservation initiatives o Providing skills development and training o Supporting sustainable farming o Developing natural flood management solutions

We will continue to focus our work in areas of greatest need across the North east and Cumbria, helping people in hardship and isolation; building the green economy, connecting those who need it most with nature and helping people and places respond and adapt to climate change.

11

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Trustees' Report

Our business management plan enables us to focus on priority areas to support sustainable growth and adapt to a face-paced changing world. We plan to maintain our areas of strength whilst building and/or improving other area as needed. This will support the organisation to build and retain skills and committed teams and develop systems and facilities that are fit for purpose. Our priorities include:

GNEC will strive to improve our financial position and drive income diversification, generating more flexible funds that we can use to deliver our local programmes.

  1. Keep our overhead costs low to ensure discretionary spending is focused on supporting local delivery

  2. Continue to make strides in contributing towards our reserves policy to sustain our charitable operations

  3. Use our financial resources to support GNEC, increasing our resilience, diversify income streams and maximise community impact.

12

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Trustees' Report

Trading Activities

The Greenhouse Environmental Business Centre in Annfield Plain was established as an eco-Centre in 2005 and provides high quality facilities for our tenants. With an on-site wind turbine, c70% of electricity used in the building was generated from this facility. The environmental credentials of the building will continue to be improved and where relevant, leading technologies to cement this unique proposition in the area will be continued. This includes a potential investment in commercial battery storage for variable energy generation and consumption.

At our Land of Oak and Iron Heritage Centre in Winlaton Mill, we are proud to promote and celebrate local heritage and history of the Derwent Valley and surrounding areas. The centre attracts significant visitor numbers from the local population due to the convenience of the site and amenities provided. The centre continues to engage through on site events and an active social media presence. A quality food and drink offer is constantly being updated to encourage repeat visits. Further investment is scheduled to develop a new play area adjacent to the centre.

Directors and Trustees

Structure, Governance and Management

Governing Document

The Trust is a registered charity and a company limited by guarantee and is governed by its Memorandum and Articles of Association.

The Trust is part of a national federation of independent Trusts, including the Groundwork national office and we continue to play a leading role in the development of Groundwork in the UK. Each Groundwork trust operates independently with their local partners to improve people’s prospects, create better places and promote greener living and working.

Appointment of trustees

Trustees who are also members of the Company serve a term to a maximum of three years and can be appointed for further terms subject to approval by the Board.

Trustee induction and training

Trustees meet with the Chief Executive and Chairman for an introduction to the Trust. Trustees are invited and encouraged to sit on Board Committees.

Organisation

The Board of Trustees, which can have up to 15 members, administer the charity. A Chief Executive is appointed by the trustees to manage the day-to-day operations of the charity.

During this financial year there were four meetings of the full Board, which received reports from committees which also met quarterly:

13

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Trustees' Report

At each meeting of the Board, presentations from areas of the business are received. Throughout the year presentations from staff on projects in the Youth Employment Initiative, Land & Communities Projects and an overview of the Social Enterprise businesses were made.

Related parties and co-operation with other organisations

The Trustees represent local authorities, businesses, community & voluntary organisations. None of our trustees receive remuneration or other financial benefit from their work with the charity.

The Trust is part of a national network of independent trusts known as the Groundwork Federation.

The Trust has one wholly owned subsidiary company,

The Greenhouse Company (Groundwork) Limited;

Details of any related party transactions are disclosed in Note 26 to the accounts.

14

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Trustees' Report

Statement of trustees' responsibilities

The trustees (who are also the directors of Groundwork North East for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

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

The trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the parent charitable company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the parent charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Disclosure of information to auditor

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

Reappointment of auditor

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Azets Audit Services as auditors of the charity is to be proposed at the forthcoming Annual General Meeting.

25 November 2025

The annual report was approved by the trustees of the charity on .................... and signed on its behalf by:

......................................... EQF3ED3EA568428... A R Thurston Trustee

15

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Independent Auditor's Report to the Members of Groundwork North East

Opinion

We have audited the financial statements of Groundwork North East (the 'charitable parent company') and its subsidiary (the 'group') for the year ended 31 March 2025, which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees 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 uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the financial statements were authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

16

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Independent Auditor's Report to the Members of Groundwork North East

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of trustees' responsibilities (set out on page 15), the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity's ability 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 charity or to cease operations, or have no realistic alternative but to do so.

Auditor responsibilities for the audit of the financial statements

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

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:

17

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Independent Auditor's Report to the Members of Groundwork North East

• Enquiries with management about any known or suspected instances of non-compliance with laws and regulations cluding fraud;

• Challenging assumptions and judgements made by management in their significant accountingestimates; and

• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.

Because of the field in which the client operates, we identified the following areas as those most likely to have a material impact on the financial statements: compliance with the UK Companies Act, and the Charities Act.

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or recognise the non-compliance.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable parent company's trustees, 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 group's trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable parent company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Signed by: ...................................... [sinA919E10F4B2841D... Droww Simon Brown BA ACA DChA (Senior Statutory Auditor) For and on behalf of Azets Audit Services Chartered Accountants Statutory Auditor Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS

28 November 2025

Date:.............................

Azets Audit Services is a trading name of Azets Audit Services Limited.

18

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Consolidated Statement of Financial Activities for the Year Ended 31 March 2025 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investment income
6
Other income
7
Total Income
Expenditure on:
Raising funds
8
Charitable activities
9
Total Expenditure
Net income/(expenditure)
Transfers between funds
Other recognised gains
and losses
Other gains/losses
(Profit)/loss on sale of
tangible fixed assets held for
charity's own use
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
23		 Unrestricted
£
89,552
-
980,592
83,679
26,471
1,180,294
(786,150)
(31,892)
(818,042)
362,252
(57,455)
13,120
(1,979)
315,938
3,503,204
3,819,142		 Restricted
£
-
7,012,010
-
-
-
7,012,010
-
(7,096,429)
(7,096,429)
(84,419)
57,455
-
-
(26,964)
1,246,371
1,219,407		 Total
2025
£
89,552
7,012,010
980,592
83,679
26,471
8,192,304
(786,150)
(7,128,321)
(7,914,471)
277,833
-
13,120
(1,979)
288,974
4,749,575
5,038,549		 Total
2024
£
83,242
7,334,620
924,107
61,324
17,259
8,420,552
(712,234)
(7,763,496)
(8,475,730)
(55,178)
-
85,550
-
30,372
4,719,203
4,749,575

All of the group's activities derive from continuing operations during the above two periods.

The funds breakdown for 2024 is shown in note 23.

19

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

(Registration number: 02702815) Consolidated Balance Sheet as at 31 March 2025

2025 2024
Note £ £
Fixed assets
Tangible assets 15 1,638,994 1,643,882
Investments 16 2,195,000 2,195,000
3,833,994 3,838,882
Current assets
Stocks 17 10,339 12,673
Debtors 18 1,824,321 2,277,045
Cash at bank and in hand 1,358,950 749,648
3,193,610 3,039,366
Creditors: Amounts falling due within one year 19 (1,759,840) (1,871,678)
Net current assets 1,433,770 1,167,688
Total assets less current liabilities 5,267,764 5,006,570
Creditors: Amounts falling due after more than one year 20 (229,215) (256,995)
Net assets 5,038,549 4,749,575
Funds of the group:
Restricted 1,219,407 1,246,371
Unrestricted income funds
Designated funds 2,221,590 2,208,470
General funds 1,597,552 1,294,734
Total unrestricted funds 3,819,142 3,503,204
Total funds 23 5,038,549 4,749,575

The financial statements on pages 19 to 45 were approved by the trustees, and authorised for issue 25 November 2025 on .................... and signed on their behalf by:

......................................... EQF3ED3EA568428... ......................................... EBAB1E8AB9DA4E3... A R Thurston A J J Anderson Trustee Trustee

20

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

(Registration number: 02702815) Balance Sheet as at 31 March 2025

2025 2024
Note £ £
Fixed assets
Tangible assets 15 1,531,449 1,561,964
Investments 16 2,195,001 2,195,001
3,726,450 3,756,965
Current assets
Debtors 18 1,759,015 2,193,524
Cash at bank and in hand 1,253,943 507,027
3,012,958 2,700,551
Creditors: Amounts falling due within one year 19 (1,722,474) (1,739,572)
Net current assets 1,290,484 960,979
Total assets less current liabilities 5,016,934 4,717,944
Creditors: Amounts falling due after more than one year 20 (229,215) (256,995)
Net assets 4,787,719 4,460,949
Funds of the charity:
Restricted 1,219,407 1,246,371
Unrestricted income funds
Designated funds 2,221,590 2,208,470
Unrestricted funds 1,346,722 1,006,108
Total unrestricted funds 3,568,312 3,214,578
Total funds 23 4,787,719 4,460,949

The financial statements on pages 19 to 45 were approved by the trustees, and authorised for issue 25 November 2025 on .................... and signed on their behalf by:

......................................... EQF3ED3EA568428... ......................................... A R Thurston A J J Anderson Trustee Trustee

21

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Consolidated Statement of Cash Flows for the Year Ended 31 March 2025

Note
Cash flows from operating activities
Net cash income
Adjustments to cash flows from non-cash items
Depreciation
15
Investment income
6
Revaluation of investments
Loss on disposal of fixed assets held for the group's own use
11
Working capital adjustments
Decrease/(increase) in stocks
17
Decrease/(increase) in debtors
18
(Decrease)/increase in creditors
19
Net cash flows from operating activities
Cash flows from investing activities
Interest receivable and similar income
6
Purchase of tangible fixed assets
15
Sale of tangible fixed assets
Sale of investments
Net cash flows from investing activities
Cash flows from financing activities
Repayment of loans and borrowings
19
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 1 April
Cash and cash equivalents at 31 March		 2025
£
288,974
90,206
(83,679)
-
1,979
297,480
2,334
452,724
(113,989)
638,549
83,679
(90,298)
3,001
-
(3,618)
(25,629)
609,302
749,648
1,358,950		 2024
£
30,372
76,602
(61,324)
(85,550)
-
(39,900)
(1,857)
(326,839)
61,978
(306,618)
61,324
(40,317)
-
80,000
101,007
(24,263)
(229,874)
979,522
749,648

All of the cash flows are derived from continuing operations during the above two periods.

22

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Notes to the Financial Statements for the Year Ended 31 March 2025

1 Charity status

The charity is limited by guarantee, incorporated in England and England and Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

The address of its registered office is: 14 Parsons Court, Welbury Way, Newton Aycliffe, County Durham, DL5 6ZE

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

The financial statements have been prepared in accordance with 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)) (issued 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

Groundwork North East meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the charity and its subsidiary undertakings drawn up to 31 March 2025.

No statement of financial activities is presented for the charity as permitted by section 408 of the Companies Act 2006. The charity made a surplus of for the financial year of £326,770 (2024 - loss of of £6,361).

A subsidiary is an entity controlled by the charity. Control is achieved where the charity has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Inter-company transactions, balances and unrealised gains on transactions between the charity and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.

23

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Notes to the Financial Statements for the Year Ended 31 March 2025

Going concern

The trustees consider that there are no material uncertainties about the group's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the group.

Estimation uncertainty and judgements

In the application of the Trust’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

There are no significant accounting estimates which are considered to materially impact the financial statements.

Income and endowments

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

Donations and legacies

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

Investment income

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Rental income is recognised once the charity has received the income.

24

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Notes to the Financial Statements for the Year Ended 31 March 2025

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses.

Government grants

Government grants are recognised based on the performance model and are measured at the fair value of the asset received or receivable. Grants are recognised in income where there are no performance conditions. If there are such performance conditions, then the income is deferred and recognised as deferred income within creditors.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

25

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Notes to the Financial Statements for the Year Ended 31 March 2025

Tangible fixed assets

Individual fixed assets are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate
Leasehold improvements over the remaining unexpired term of
the lease
Freehold property over 50 years
Furniture and equipment over 4 years
Computer and software over 3 years
Motor vehicles over 3 years

Investments

Fixed asset investments are stated at cost less provision for diminution in value. Those stated as current assets are stated at the lower of cost and net realisable value.

Investment property is included at open market value, which is updated every five years by an independent, chartered surveyor. Each year, trustees review the valuations in order to identify any impairment that is due.

Stock

Stock and work in progress are valued at the lower of cost and net realisable value.

26

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Notes to the Financial Statements for the Year Ended 31 March 2025

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the group.

Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

27

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Notes to the Financial Statements for the Year Ended 31 March 2025

Pensions and other post retirement obligations

The group operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial Instruments

The Trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans, which are subsequently measured at amortised cost using the effective interest method.

3 Income from donations and legacies

Donations and legacies;
Donations from individuals
Donations and legacies;
Donations from individuals
4
Income from charitable activities
Improve people's prospects
Create better places
Promote greener living and working		 Unrestricted
funds
General
£
89,552
89,552
Unrestricted
funds
General
£
83,242
83,242		 Restricted
funds
£
-
-
Restricted
funds
£
-
-
Restricted
funds
£
4,254,062
1,926,834
831,114
7,012,010		 Total
2025
£
89,552
89,552
Total
2024
£
83,242
83,242
Total
2025
£
4,254,062
1,926,834
831,114
7,012,010

28

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Notes to the Financial Statements for the Year Ended 31 March 2025

Improve people's prospects
Create better places
Promote greener living and working
5
Income from other trading activities
Trading activities
The Greenhouse Company (Groundwork) Limited
Trading activities
The Greenhouse Company (Groundwork) Limited
6
Investment income
Interest receivable and similar income;
Interest receivable on bank deposits
Income from rents
Interest receivable and similar income;
Interest receivable on bank deposits
Income from rents		 Restricted
funds
£
4,144,943
2,148,370
1,041,307
7,334,620
Unrestricted
funds
General
£
980,592
980,592
Unrestricted
funds
General
£
924,107
924,107
Unrestricted
funds
General
£
11,673
72,006
83,679
Unrestricted
funds
General
£
7,354
53,970
61,324		 Total
2024
£
4,144,943
2,148,370
1,041,307
7,334,620
Total
2025
£
980,592
980,592
Total
2024
£
924,107
924,107
Total
2025
£
11,673
72,006
83,679
Total
2024
£
7,354
53,970
61,324

29

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Notes to the Financial Statements for the Year Ended 31 March 2025

7 Other income

Other income Other income

Unrestricted
funds
General
£
26,471
Unrestricted
funds
General
£
17,259		 Total
2025
£
26,471
Total
2024
£
17,259

8 Expenditure on raising funds

a) Costs of trading activities

a) Costs of trading activities
Trading subsidiary
9
Expenditure on charitable activities
Improve people's prospects
Create better places
Promote greener living and working
Core
Improve people's prospects
Create better places
Promote greener living and working		 Allocated
support
costs
£
786,150
Activity
undertaken
directly
£
3,489,069
1,485,311
693,513
300,057
5,967,950
Activity
undertaken
directly
£
3,297,865
2,179,381
954,515
6,431,761		 Total
2025
£
786,150
Activity
support
costs
£
678,393
288,795
134,842
58,341
1,160,371
Activity
support
costs
£
682,843
451,254
197,638
1,331,735		 Total
2024
£
712,234
2025
£
4,167,462
1,774,106
828,355
358,398
7,128,321
2024
£
3,980,708
2,630,635
1,152,153
7,763,496

30

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Notes to the Financial Statements for the Year Ended 31 March 2025

10 Analysis of governance and support costs

Support costs allocated to charitable activities

Staffing
Transport
Premises
Supplies and services
Legal fees
Audit fees
Depreciation
Staffing
Transport
Premises
Supplies and services
Legal fees
Audit fees
Depreciation		 Governance
costs
£
-
-
-
-
-
16,325
-
16,325
Governance
costs
£
-
-
-
-
-
13,500
-
13,500		 Other
support
costs
£
449,838
18,032
129,519
305,203
193,172
-
48,282
1,144,046
Other
support
costs
£
569,554
15,755
131,602
285,263
239,459
-
76,602
1,318,235		 Total
2025
£
449,838
18,032
129,519
305,203
193,172
16,325
48,282
1,160,371
Total
2024
£
569,554
15,755
131,602
285,263
239,459
13,500
76,602
1,331,735

The Trust initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. Having identified its governance costs, the remaining support costs together with the governance costs are apportioned between the three key programme areas delivered in the year. The basis of the apportionment of the costs is pro-rata to the expenditure on each programme area.

31

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Notes to the Financial Statements for the Year Ended 31 March 2025

11 Net incoming/outgoing resources

Net incoming/(outgoing) resources for the year include:

Audit fees
Depreciation of fixed assets		 2025
£
16,325
48,282		 2024
£
13,500
76,602

12 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the group during the year.

No trustees have received any reimbursed expenses or any other benefits from the charity during the year.

32

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Notes to the Financial Statements for the Year Ended 31 March 2025

13 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs
Compensation payments		 2025
£
4,389,865
63,043
30,529
25,576
4,509,013		 2024
£
4,368,134
131,194
60,137
26,281
4,585,746

The monthly average number of persons (including senior management / leadership team) employed by the group during the year expressed as full time equivalents was as follows:

Number of staff
The number of employees whose emoluments fell within the following
£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£90,001 - £100,000
£110,001 - £120,000		 2025
No
142
bands was:
2025
No
1
1
-
1
1		 2024
No
174
2024
No
1
1
1
-
-

The total employee benefits of the key management personnel of the group were £389,949 (2024 - £249,999).

14 Taxation

The group is a registered charity and is therefore potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

33

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Notes to the Financial Statements for the Year Ended 31 March 2025

15 Tangible fixed assets

Group

Cost
At 1 April 2024
Additions
Disposals
At 31 March 2025
Depreciation
At 1 April 2024
Charge for the year
Depreciation eliminated on
disposals
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024		 Land and
buildings
£
1,911,708
-
-
1,911,708
364,966
40,086
-
405,052
1,506,656
1,546,742		 Furniture and
equipment
£
632,374
90,298
(11,950)
710,722
543,106
46,622
(6,970)
582,758
127,964
89,268		 Motor
vehicles
£
73,605
-
-
73,605
65,733
3,498
-
69,231
4,374
7,872		 Total
£
2,617,687
90,298
(11,950)
2,696,035
973,805
90,206
(6,970)
1,057,041
1,638,994
1,643,882

Included within the net book value of land and buildings above is £328,478 (2024 - £366,538) in respect of freehold land and buildings and £1,178,178 (2024 - £1,180,204) in respect of leasehold properties.

34

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Notes to the Financial Statements for the Year Ended 31 March 2025

Charity

Charity
Cost
At 1 April 2024
Additions
At 31 March 2025
Depreciation
At 1 April 2024
Charge for the year
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024		 Land and
buildings
£
1,911,708
-
1,911,708
364,966
40,086
405,052
1,506,656
1,546,742		 Furniture and
equipment
£
433,556
17,767
451,323
426,206
4,698
430,904
20,419
7,350		 Motor
vehicles
£
73,605
-
73,605
65,733
3,498
69,231
4,374
7,872		 Total
£
2,418,869
17,767
2,436,636
856,905
48,282
905,187
1,531,449
1,561,964

Included within the net book value of land and buildings above is £328,478 (2024 - £366,538) in respect of freehold land and buildings and £1,178,178 (2024 - £1,180,204) in respect of leasehold properties.

35

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Notes to the Financial Statements for the Year Ended 31 March 2025

16 Fixed asset investments

Group
Investment properties
Investment properties
Cost or Valuation
At 1 April 2024
Provision
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024		 2025
£
2,195,000		 2024
£
2,195,000
Investment
properties
£
2,195,000
-
2,195,000
2,195,000

The fair value of the investment properties have been arrived at on the basis of a valuation carried out by Lambert Smith Hampton on 5 March 2024 for all investment properties. The valuation was made on an open market basis by reference to market evidence of transaction prices for similar properties. The investments in property are held primarily for an investment return. An internal review is undertaken by the trustees annually.

Charity

Charity
Investment properties
Other investments		 2025
£
2,195,000
1
2,195,001		 2024
£
2,195,000
1
2,195,001

36

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Notes to the Financial Statements for the Year Ended 31 March 2025

Investment properties

Cost or Valuation
At 1 April 2024
Provision
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024		 Investment
properties
£
2,195,000
-
2,195,000
2,195,000

The fair value of the investment properties have been arrived at on the basis of a valuation carried out by Lambert Smith Hampton on 5 March 2024 for all investment properties. The valuation was made on an open market basis by reference to market evidence of transaction prices for similar properties. The investments in property are held primarily for an investment return. An internal review is undertaken by the trustees annually.

Investment in subsidiary

Cost or Valuation
At 1 April 2024
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024		 Investment in
subsidiary
£
1
1
1
1		 Total
£
1
1
1
1

Details of undertakings

The company's investments at the balance sheet date include an investment in The Greenhouse Company (Groundwork) Limited. Groundwork North East hold 100% of the ordinary share capital of The Greenhouse Company (Groundwork) Limited.

In the year to 31 March 2025 the subsidiary recorded a surplus of £168.463 (2024: £204,208) and had net assets of £250,831 (2024: £288,627).

37

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Notes to the Financial Statements for the Year Ended 31 March 2025

17 Stock

17 Stock
Stocks
18 Debtors
Trade debtors
Prepayments
Accrued income
Other debtors		 Group
2025
£
2024
£
10,339
12,673
Group
2025
£
2024
£
731,329
1,023,306
135,686
121,558
917,306
1,032,181
40,000
100,000
1,824,321
2,277,045		 Charity
2025
£
2024
£
-
-
Charity
2025
£
2024
£
691,549
960,850
110,160
100,493
917,306
1,032,181
40,000
100,000
1,759,015
2,193,524
2,193,524

38

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Notes to the Financial Statements for the Year Ended 31 March 2025

19 Creditors: amounts falling due within one year

Bank loans
Trade creditors
Due to group undertakings
Other taxation and social
security
VAT
Other creditors
Accruals and deferred income		 Group
2025
£
2024
£
27,566
25,415
161,015
409,184
-
-
58,508
71,341
143,458
93,917
24,789
30,055
1,344,504
1,241,766
1,759,840
1,871,678		 Charity
2025
£
2024
£
27,566
25,415
121,059
252,367
80,627
92,391
58,508
71,341
111,092
62,953
21,232
27,627
1,302,390
1,207,478
1,722,474
1,739,572		 Charity
2025
£
2024
£
27,566
25,415
121,059
252,367
80,627
92,391
58,508
71,341
111,092
62,953
21,232
27,627
1,302,390
1,207,478
1,722,474
1,739,572
1,739,572

Creditors due within one year includes the following liabilities on which security has been given:

Charity Bank Loan
Bounce back Loan		 Group
2025
£
2024
£
16,947
15,360
10,619
10,055
27,566
25,415		 Charity
2025
£
2024
£
16,947
15,360
10,619
10,055
27,566
25,415		 Charity
2025
£
2024
£
16,947
15,360
10,619
10,055
27,566
25,415
25,415

20 Creditors: amounts falling due after one year

Group Charity
2025 2024 2025 2024
£ £ £ £
Bank loans 229,215 256,995 229,215 256,995

Creditors amounts falling due after more than one year includes the following liabilities on which security has been given:

Charity Bank Loan
Bounce back loan		 Group
2025
£
2024
£
222,510
239,661
6,705
17,334
229,215
256,995		 Charity
2025
£
2024
£
222,510
239,661
6,705
17,334
229,215
256,995		 Charity
2025
£
2024
£
222,510
239,661
6,705
17,334
229,215
256,995
256,995

39

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Notes to the Financial Statements for the Year Ended 31 March 2025

21 Obligations under leases and hire purchase contracts

The total value of future minimum lease payments was as follows:

Within one year
In two to five years		 Group
2025
£
2024
£
6,096
6,096
15,283
21,379
21,379
27,475		 Charity
2025
£
2024
£
4,298
4,298
10,773
15,071
15,071
19,369		 Charity
2025
£
2024
£
4,298
4,298
10,773
15,071
15,071
19,369
19,369

22 Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £23,433 (2024 - £60,137).

Contributions totalling £28,879 (2024 - £24,112) were payable to the scheme at the end of the year and are included in creditors.

40

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Notes to the Financial Statements for the Year Ended 31 March 2025

23 Funds

Group

Unrestricted funds
General
General funds
Designated
Revaluation reserve
The Greenhouse
Trustees Designated
Reserve
Total unrestricted
funds
Restricted funds
Property Fund -
Greencroft
Woodland Purchase
Property Fund -
Cockermouth 2
Market St
Project funds
Land of Oak and Iron
Heritage Centre
Fund
Total restricted funds
Total funds		 Balance
at 1 April
2024
£
1,294,734
13,470
2,095,000
100,000
2,208,470
3,503,204
40,591
17,612
-
1,188,168
1,246,371
4,749,575		 Incoming
resources
£
Resources
expended
£
1,180,294
(818,042)
-
-
-
-
-
-
-
-
1,180,294
(818,042)
-
-
-
-
7,012,010
(7,069,465)
-
(26,964)
7,012,010
(7,096,429)
8,192,304
(7,914,471)		 Transfers
£
Other
recognised
gains/(losses)
£
(57,455)
(1,979)
-
13,120
-
-
-
-
-
13,120
(57,455)
11,141
-
-
-
-
57,455
-
-
-
57,455
-
-
11,141		 Balance
at 31
March
2025
£
1,597,552
26,590
2,095,000
100,000
2,221,590
3,819,142
40,591
17,612
-
1,161,204
1,219,407
5,038,549

Restricted - Property funds

Grants were received for the refurbishment of 2 Market Street, Cockermouth. These are being written off in line with the depreciation policy of these assets.

The Greenhouse project represents funding for the construction of The Greenhouse, an investment asset. The restriction is reducing over a period of 15 years. The transfer from the restricted fund relates to the amount being reallocated to the designated fund, which together total the value of the investment.

The Greencroft Woodlands Purchase Fund is funding received to purchase woodland adjacent to the Greencroft Industrial Estate, Annfield Plain.

41

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Notes to the Financial Statements for the Year Ended 31 March 2025

BBO Development Funding

Spending is restricted to future delivery of the Building Better Opportunities (BBO) programme.

Land of Oak & Iron Heritage Centre fund

The construction of the Land of Oak & Iron Heritage Centre was completed in September 2018. The funds equals the net book value of the asset.

Designated Fund - The Greenhouse

The fund represents the remaining unrestricted balance of the investment property. The transfer relates to the amount being reallocated from the restricted fund, which together total the value of the investment.

Designated Fund - Trustees Designated Fund

The Trustees Designated Fund is set aside in relation to an ongoing review of pay structures across the Trust.

Project funds

Project funds represent funding to enable specific projects to be undertaken in the year. Included in the charitable activities there are a number of funders and specific projects that need to be referred to specifically. These project funds are held in restricted reserves. The balance on Project funds is the overall net position on over 200 individual projects. The funds that require seperate analysis are shown below:

Project Funder Balance Income Expenditure Balance
B/Fwd C/Fwd
£ £ £ £
River Tees
Rediscovered		 Heritage Lottery Fund (55,384) 783 (54,601)
BBO - Step Forward
Tees Valley		 Big Lottery / European
Social Fund		 26,991 26,991
BBO - Reaching Out
Accross Durham		 Big Lottery / European
Social Fund		 37,386 (54,440) (17,054)
Eden Hill Young
Peoples Project		 Horden Youth and
Community Centre		 78,025 74,493 (117,736) 34,782
Norton Grange
Lottery Funding		 Heritage Lottery Fund 7,704 400 1
Big Local Easington Local Trust 26,055 100,789 (84,760) 42,084
RC North East &
Cumbria Region		 National Lottery
Community Fund		 26,153 (14,662) 11,491
Western Perimeter
Path		 Livin Housing Limited 2,883 (1,506) (1,216) 161
Reaching Out Across
Durham (2)		 UK Shared Prosperity
Fund		 (154,823) 154,822 (322,507) (118,449)
Durhamworks DD-
D387		 Durham CC/ European
Social Fund		 (64,331) 64,331 (533) (533)
Distington Big Local Local Trust 19,664 145,765 (121,851) 42,579

42

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Notes to the Financial Statements for the Year Ended 31 March 2025

Big Local Gateshead-
TW394		 Local Trust 2,062 (2,401) (339)
Millions Hours Fund-
D404		 National Lottery
Community Fund		 27,130 48,793 (27,938) 47,985

The above overdrawn projects are paid in arrears and the balance was paid to Groundwork post year end.

24 Analysis of net assets between funds

Group

Group
Tangible fixed assets
Fixed asset investments
Net current assets/(liabilities)
Creditors over 1 year
Total net assets
Tangible fixed assets
Fixed asset investments
Net current assets/(liabilities)
Creditors over 1 year
Total net assets		 Unrestricted
General
£
Designated
£
392,997
26,590
100,000
2,095,000
1,333,770
100,000
(229,215)
-
1,597,552
2,221,590
Unrestricted
General
£
Designated
£
384,041
13,470
100,000
2,095,000
1,067,688
100,000
(256,995)
-
1,294,734
2,208,470		 Restricted
£
1,219,407
-
-
-
1,219,407
Restricted
£
1,246,371
-
-
-
1,246,371		 Total funds
£
1,638,994
2,195,000
1,433,770
(229,215)
5,038,549
Total funds
at 31 March
2024
£
1,643,882
2,195,000
1,167,688
(256,995)
4,749,575

25 Analysis of net funds

Group

Cash at bank and in hand
Debt due within one year
Debt due after more than one year
Net debt		 At 1 April
2024
£
749,648
(25,415)
(256,995)
467,238		 Financing
cash flows
£
609,302
(2,151)
27,780
634,931		 At 31 March
2025
£
1,358,950
(27,566)
(229,215)
1,102,169

43

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Notes to the Financial Statements for the Year Ended 31 March 2025

26 Related party transactions

The Trust is part of a national network of trusts being part of the Groundwork Federation. Any trading activities with other trusts are at arm’s length on normal commercial terms.

The Trustees represent local authorities, businesses, community & voluntary organisations. All transactions with these bodies are on an arm’s length basis.

The Greenhouse Company ( Groundwork) Limited.

Groundwork North East provided management services and invoiced £24,000 (2024-£24,000).

Other Groundwork Trusts

The following transactions occurred with other Groundwork Trusts during the year;

Groundwork Trust **Sales in Year ** Purchases in
year		 Amounts
due/(owed) at
year end
£ £ £
Groundwork UK 204,599 32,028 5,476
Groundwork South and North Tyneside 42,065 213,548
Groundwork London - 10,919
Groundwork East 1,711 -
Groundwork Yorkshire 147,144 7,493 (6,180)
Groundwork Ten North East Limited 1,733 - (27)
Groundwork Cheshire, Lancashire & Merseyside 43,064

27 Contingent liabilities

On 15 March 2018 a legal charge was registered against Groundwork North East by the Trustees of The National Heritage Memorial Fund regarding a grant of £697,700 awarded for the Land of Oak and Iron project.

44

Docusign Envelope ID: F2BC77CA-FDD1-4112-9966-E82B8F00BC8D

Groundwork North East

Comparative Consolidated Statement of Financial Activities for the Year Ended 31 March 2024 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investment income
6
Other income
7
Total income
Expenditure on:
Raising funds
8
Charitable activities
9
Total expenditure
Net (expenditure)/income
Transfers between funds
Other recognised gains and losses
Other gains/losses
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
23		 Unrestricted
£
83,242
-
924,107
61,324
17,259
1,085,932
(712,234)
(1,086,008)
(1,798,242)
(712,310)
721,077
85,550
94,317
3,408,887
3,503,204		 Restricted
£
-
7,334,620
-
-
-
7,334,620
-
(6,677,488)
(6,677,488)
657,132
(721,077)
-
(63,945)
1,310,316
1,246,371		 Total
2024
£
83,242
7,334,620
924,107
61,324
17,259
8,420,552
(712,234)
(7,763,496)
(8,475,730)
(55,178)
-
85,550
30,372
4,719,203
4,749,575

45