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2024-07-31-accounts

Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

THE COMMON PURPOSE CHARITABLE TRUST (A company limited by guarantee)

CONSOLIDATED REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2024

Company registered number: 2832875 Charity registered number: 1023384

Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

THE COMMON PURPOSE CHARITABLE TRUST

REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2024

CONTENTS Page
Chair and Chief Executive’s report 1
Trustees’ report 2 – 14
Independent Auditors’ report 15 – 17
Consolidated statement of financial activities 18
Consolidated balance sheet 19
Trust balance sheet 20
Consolidated cash flow statement 21
Notes to the consolidated financial statements 22 – 38

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COMMON PURPOSE CHARITABLE TRUST

CHAIR AND CHIEF EXECUTIVE’S REPORT

YEAR ENDED 31 JULY 2024

Chair and Chief Executive’s report

This year has been one of mixed fortunes for Common Purpose. We have had much success delivering innovative leadership skills training to an increasingly broad range of clients and continued to receive very positive feedback on the work we do and the impact we make. Against this background, however, we have had a disappointing financial result, especially from our unrestricted and trading activities. These areas have been adversely affected by a significant disruption to the learning and development market post Covid leading to changes in buying habits, and a reduction in demand for some of our previously successful propositions. Evolve Careers, our new venture, has also been slower than expected to generate revenue and has required higher than budgeted investment.

As a result of these issues, and as explained further in the Trustees report, we have suffered a substantial reduction in unrestricted reserves and have faced a difficult position with the level of our unrestricted cash balance. Whilst our restricted reserves and restricted cash remain at a healthy level, in common with all other charities these amounts are not available to meet the needs of our unrestricted activities or most of our central overheads.

Many of the challenges we face reflect the continuing uncertainty in the world today and the extent to which geo-political turmoil, financial instability, economic downturns, political difficulties and climate change are adversely impacting our clients and the markets in which we operate.

While in many respects we are facing up well to these challenges, we recognize the need for change, not least to bring the group back onto a sustainable financial footing and to rebuild our unrestricted reserves. The main steps being taken are set out in the Trustees’ report. They include restructuring our core businesses to help drive efficiency and reduce our cost base, introducing new products and services which we hope will improve revenues and margin and seeking to realize value from our investment in Evolve Careers.

We remain confident that these changes will help us both overcome the current challenges we face and make us a stronger and more resilient organization going forward, better able to focus on our underlying charitable objectives. The relevance of what we do and how we can help people of all levels become more effective and inspiring leaders has never been greater.

Highlights of our business this year include:

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COMMON PURPOSE CHARITABLE TRUST

CHAIR AND CHIEF EXECUTIVE’S REPORT

YEAR ENDED 31 JULY 2024

In terms of our non-financial objectives, the following highlights the good progress made during the year:

In our main measures of the quality of what we provide to participants:

These results help demonstrate the quality of what we provide and the capabilities of our staff in being able to meet the needs of our clients.

In conclusion, while the financial results for the year have been disappointing and we expect another challenging year in 2024/25, we believe that the changes referred to above are the right response given the context and over time will deliver a much-improved result. Combined with our current strong pipeline of work and the strength of our restricted activities we expect to be able to build back our reserves back up to our target level over the next few years.

The Trustees appreciate the continued efforts and commitment of all our staff during the year, without which the very many positives this year would not have been possible. We also appreciate the significant input and help we receive from our many clients, partners, supporters, advisory group members, licensees and all the other stakeholders with whom we interact.

(Gen by:

David Grace Chair

Adirupa Sengupta Group Chief Executive Officer

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COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2024

The Trustees of The Common Purpose Charitable Trust (“Common Purpose”, “the Trust” or “CPCT”) are pleased to present their group annual report together with the audited financial statements for the year ended 31 July 2024 which have been prepared in accordance with the Companies Act 2006, the Charities Act 2011 and the Statement of Recommended Practice - Accounting and Reporting by Charities (Second Edition, effective 1 January 2019).

1. About Common Purpose

CPCT is the parent company in a group structure. Much of the Trust’s activities are carried out through its subsidiary organisations:

CPCT licenses entities in several countries to deliver Common Purpose programmes in their respective countries. Summary information on each organisation and licensees is shown later in this report.

The Trust was established as a charity in 1989 and is registered with the Charity Commission under the Registered Charity number 1023384.

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REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2024

2. The role of the Trust

In addition to its own activities, the Trust oversees the activities carried out through its subsidiary organisations, and is mainly responsible for:

The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit, ‘Charities and Public Benefit’.

3. Our purpose and activities

The purpose of the Trust is to drive social purpose and have a positive and sustained impact on the quality of leadership by:

The vision that shapes our work is to give people from different sectors, backgrounds and generations the inspiration, skills and connections to become better leaders, both at work and in society. We run local and global programmes in cities across the world for thousands of leaders each year from over 100 countries across six continents.

The strategies we employ to achieve our aims and objectives are to:

4. Achievements and performance

As noted in the Chair and Chief Executive’s report above, the objectives for the year were formulated against a backdrop of continuing uncertainty due to the geo-political uncertainty, economic and political difficulties. Our plans included:

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YEAR ENDED 31 JULY 2024

from online, and step up our efforts to deliver programmes for university staff in addition to those for students

The financial results are set out in the review of financial activities in paragraph 8 below. Details of the impact of individual companies within the group are set out in the sections immediately following.

For more details visit our website: www.commonpurpose.org

5. Plans for 2024/25

We have made several strategic decisions for 2024/25 to help reset and adapt to meet the needs of our long-term sustainability.

A lot of this has been driven by a deep need to consolidate, streamline and collaborate better at fewer levels across the organization and to increase the impact of our external work.

With that principle at core, we embarked on a restructuring exercise which included the following:

We are already seeing the benefits of this new structure, with the three business verticals more closely aligned in how they engage with their markets and clients, and a much clearer articulation of sales strategies within their areas of expertise

CPEC (Evolve Careers) which was a start-up incubated within Common Purpose sits outside this new structure for now as we decide on its next chapter. It will continue to work directly with the respective boards with some strategic and operational support provided.

On the programming side, while the world of learning and development continues to reset, we will continue to deliver a mix of in-person and online programmes post the product review, during the coming year.

Our new two core open programmes, Beacon and Lighthouse, will once again run in most of our key locations. We have significantly re-framed our Global Leaders Programme (formerly called January) as Unplugged as part of the product review to keep it relevant and attractive to senior leaders; our ASEAN

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REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2024

Leadership Programme (ALP) will be reframed to ASEAN Horizons in the context of the needs of the market; and we have reviewed our approach and plans in Africa in consultation with our South African licensee.

Specifically on higher education, following the growth and solidity in this business in 2023/24, we have reset our expectations for 2024/25 in line with the changes in the sector. However, we believe our new approach in 2024/25 as part of the restructure will better align our customers’ needs to more local teams and help support more effective delivery of our offering. We will also continue to develop programmes for university staff.

Our offering in EdTech will continue to develop. We created a new company, Common Purpose Evolve Careers Ltd at the start of the last financial year, dedicated specifically to this new business. We anticipate growing revenue particularly in the second half of 2024/25 while we push for investment opportunities during 2024/25.

We continue to strengthen our relationship with the American Express Foundation and in 2024/25 will deliver Leadership Academies in Asia-Pac (in Sydney), EMEA (in London) and the Americas (in New York). We will also run an awards scheme on behalf of the Foundation to recognize the work of the academy alumni in this sector. We may experiment with a ‘lighter’ version of the Academy in a new location such as Mexico or Japan.

Our environment-related work is growing, and we are seeing firm interest from foundations to support our programmes. We expect to deliver some scale programmes on environmental leadership during 2024/25.

6. Review of financial activities

Overview of financial position

Total income for the year 2023/24 was £6.9m (2022/23: £5.5m), an increase of 26% over the previous year. The biggest single contributor to the increase was from grants (up by 108%), which was the result of our deepening relationship with key donors who wanted us to expand their programmes. Revenue from customized programmes rose by 5%, while income from all other types of programmes fell. The fall in student programmes reflected difficult economic conditions for universities around the world, and our open programmes (predominantly run in the UK) struggled to attract revenue during a year of great economic uncertainty. A further contribution to the group’s loss (£338k) was as a result of continued investment and product development in CPEC.

Expenditure was £7.1m (2022/23: £6.2m), an overall increase of 15% across both restricted and unrestricted costs. Regarding expenditure on unrestricted costs:

While the group’s revenues therefore held up well for the year under review, the increase in expenditure has meant the group incurring a loss of £194k for the year (2022/23 loss of £704k). This is a disappointing result, and the Trustees recognize the need to ensure that as far as possible the group returns to making a surplus in the coming year. The net movement in unrestricted funds was a fall of £1,069k (2022/23: loss of £700k); there was an increase in restricted funds of £875k (2022/23: fall of £4).

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REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2024

This has resulted in the unrestricted reserves of the company becoming negative (£626k), a situation that the Trustees are determined to rectify as quickly as possible. The restructure announced in November 2024 is aimed at helping increase revenue, particularly from unrestricted sources, by creating teams more closely aligned with the three key market segments in which the Charity operates. It will also enable CPCT to reduce its cost base and align support functions more closely with revenue generating teams.

Like many UK charities, CPCT has found trading conditions very tough over the last year, resulting in a drop in revenue in its unrestricted businesses. As set out in in sections 15 and 16 below (Risk review and Going concern), the directors have identified a material uncertainty with regard to the going concern of the Charity. This assessment is made only in light of the losses in the unrestricted side of the Charity’s business during 2023/24. Overall, the Charity has sufficient restricted cash reserves to deliver its grantbased programmes, however it needs to ensure it returns to surpluses in its unrestricted programme work to restore the Charity’s reserves to a more sustainable level.

Donated goods and services

CPCT benefits from significant support in kind locally and nationally to help keep expenditure to a minimum. The contribution made from donated goods and services increased very slightly during the year. Post pandemic and with the continuing challenging economic conditions in the UK, it has become increasingly difficult to obtain hosted venues for our in-person programmes. The value of donated goods and services in 2024 was £160k compared with £156k in 2022/23.

7. Performance and plans of individual subsidiaries

7.1. Common Purpose Limited

Activity in CPL during the year was split into three business units: the UK business unit, Global Markets and IT & Support. In addition to this, the company receives income and provides technical support to licensees.

Review of activities

a) UK Business Unit (UKBU)

The Common Purpose Programme (TCPP) is a core element of the UKBU work. This is a blended programme (i.e. delivered real-time online and in-person) with two distinct cohorts, one for high potential leaders, the other for established senior leaders. We ran programmes for both cohorts twice during the year, in the autumn and spring, and in three different geographies: London, Midlands and the South-West; the Northern Powerhouse; and Scotland and Northern Ireland.

TCPP programmes in 2023/24 involved 381 participants. As part of our investment in developing the pipeline of under-represented leaders, 80 full bursary places were given to participants, with a particular emphasis on Black, Asian and Minority Ethnic participants. As part of our social purpose commitments, most of these places are funded by Common Purpose itself but we would also like to thank Baillie Gifford, Community First Yorkshire and Lloyds Banking Group for their ongoing support for these scholarships.

In May 2024, in response to feedback from buyers and market intelligence, we launched two new open programmes for 2024/25, Beacon for high potential and Lighthouse for senior leaders.

Legacy programmes for young leaders continued to be an important part of the UKBU portfolio and in 2023/24 five programmes were delivered in five locations – Glasgow, Northern Ireland, Newcastle, Leeds and Sunderland. These involved 303 young people aged 18-25 from a range of backgrounds. With the support of our local sponsors, we were able to offer programme places freeof-charge to all young people in those locations.

The UKBU also delivered customized programmes for a range of clients including repeat business of University of Edinburgh and RSM and the British Council and new work from the CBI and

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REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2024

Cumberland Council. We were also commissioned by Islamic Relief UK to run a programme for UK leaders from diaspora communities from the MENA region.

UK university student work continues to do well despite a challenging external environment. We engaged 796 students from 17 universities as part of universities’ careers and employability and/or global mobility strands. We also scaled some significant partnerships including our partnership with the University of Leeds.

b) Global Markets

The Global Markets business unit covers three programme areas:

The company continued to provide services to its fellow subsidiaries set out above and to licensees in Ireland, Germany, South Africa, India, Turkey and the US.

d) Licensees

The company made a loss in 2023/24 of £1,276k (2022/23: profit of £146.7k). The company’s turnover fell to £1,796k from £2,367.9k in 2022/23, a drop of 24%. Revenue was lower across all product segments as continuing economic uncertainty, particularly in the UK, impacted the company’s ability to attract participants to its open programmes. Licence fee income, which is based on the revenues of the licensee, fell by 54% over the previous year, reflecting lower revenue from one of three major licensees.

Costs overall were 38% higher than in 2022/23. Salary costs were unchanged over 2022/23 as vacant roles were not filled and salary increases kept to a minimum. Programme delivery costs increased by 50% to £998k from £663k, reflecting higher venue and travel costs. Central overheads increased by 12%.

The company also recorded an exceptional cost of £424k, the result of writing off debtor balances owed to it by companies within the group that have now ceased trading.

Plans for 2024/25

Management has streamlined the existing three business units into teams focused on customized and organisational solutions, and a second team focused on social purpose. This will allow teams to focus on single market segments, which typically operate very differently from one another, and bring together skills across different geographies to strengthen our sale efforts. Regarding the specific areas of each team:

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Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2024

These changes, as part of the business re-organization, will allow the corporate sales team to provide a clearer focus on profitable clients and markets. Moving social purpose programmes to the parent charity will help reduce costs and supporting a return of reserves to a prudent level over time.

7.2. Common Purpose Student Experiences Ltd

Review of activities

Common Purpose Student Experiences focuses on developing the next generation of inclusive leaders with Cultural Intelligence (CQ): the ability to cross boundaries and thrive in multiple cultures. We collaborate with universities to deliver our co-curricular leadership programmes. These programmes offer a cutting-edge CQ pedagogy with powerful experiential learning techniques, equipping students with CQ to thrive in the world today. They enable universities to complement existing offerings and meet key institutional objectives.

Following a re-organisation of business activities within the group at the end of 2022/23, activity in the Charity was limited to running programmes with our Australian clients. Existing client relationships elsewhere in the world (principally the UK and Asia) were aligned with local geographic teams. Our Australian operations continued to deliver programmes to existing clients during the year. In all, 14 programmes were delivered to Australian students and one to university staff. Over 750 participants from five client universities successfully graduated from Common Purpose Student programmes in the year.

The decision was taken at the end of the previous year to move the EdTech initiative out of the Charity into its own separate company, Common Purpose Evolve Careers Ltd (CPEC). In consideration of this, CPEC paid the Charity £285,600 for the platform and associated intellectual property.

In 2023/24, income from programmes totalled £507k (2022/23: £838k), a drop of 39% over the previous year. Apart from the re-allocation of business activity to other companies within the group, difficult conditions in the university sector in Australia meant clients commissioned fewer programmes in the year. In addition to this programme-related income, the Charity saw a gain of £286k on the disposal of its investment in the Evolve Careers learning platform.

Total expenditure on programme delivery in 2023/24 was £574k (2022/23: £1,223k). The Charity also wrote off £115k of intercompany debt. This was a legacy balance owed by another group entity, Common Purpose UK, which has now been dissolved.

CPSE’s revenue and costs were predominantly in the Australia branch entity, other than some income and costs associated with existing contracts in the UK that pre-dated the business re-organisation. Turnover in the branch for the year was AU $556k (2022/23: $544.7k) and it produced a surplus AU $138k (2022/23: $537k). The branch’s results are incorporated in the figures of the Charity.

Plans for 2024/25

Our relationships with our Australian client universities are strong and well-established and we plan to continue to deliver programmes for their students through the Charity in the coming year. Our branch in Australia will therefore continue to operate at a similar scale as last year for the coming twelve months. The Charity is, however, looking at reducing costs in Australia in 2024/25 through a reduction in headcount. We will therefore make greater use of associates to deliver our work in Australia.

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REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2024

7.3. Common Purpose Evolve Careers (CPEC)

Review of activities

CPEC was incorporated on 6 July 2023 as a wholly owned subsidiary of Common Purpose Limited, a trading subsidiary of The Common Purpose Charitable Trust (CPCT). It began trading on 1 August 2023.

CPEC was set up to develop and commercialize an IT platform built around bridging the gap between education and the world of work. The platform provides industry-driven on-demand learning experiences to equip young people with the tools to overcome common challenges, as well as providing them with unique access to global industry experts who offer invaluable insights into what employers truly value.

On 1 August 2023 the CPEC acquired from CPSE the rights to develop, operate and benefit from the IT platform as it then existed. The consideration paid for the acquisition was the total net cost incurred by CPSE in developing the platform during 2022/23. This amounted to £285k. The company met the cost of this acquisition by borrowing the full amount through an intercompany interest-bearing loan from CPCT.

The company’s operations and the net loss for the period were also funded by interest bearing loans from CPCT. These loans and the accrued interest thereon were capitalized on 31 July 2024 to help put the company on a stronger financial footing. A further interest-bearing loan is being advanced by CPCT to provide working capital and to meet expected losses for 2024/25. This loan is repayable on demand and secured on the company’s intangible assets.

On 31 July 2024, ownership of the Company was transferred to CPCT. On the same day CPCT agreed to convert the outstanding loans and accrued interest due from CPEC to CPCT into fully paid-up share capital and CPEC issued 806,306 shares of £1 each to CPCT in order to capitalize the total amount outstanding. There was no share premium.

During the period from 6 July 2023 to 31 July 2024 Evolve Careers completed the development of the IT platform acquired from CPSE, tested its product and service offering with its target markets and commenced sales activities.

The company made a loss of £338k in its first year of operations, mainly reflecting the costs of developing the IT platform and building the team and disappointing revenues, which were significantly below budget. Income totalled £70k, which came from clients buying access to the platform. Expenditure was £408k, of which £46k was spent on staff costs and £362k on IT development costs and impairment.

Internal software development costs of £341k, which the directors were satisfied met the capitalisation requirements of the relevant accounting standards were capitalized as an intangible asset. The loss for the financial period includes £34k of amortisation of this intangible asset and the intangible asset acquired from CPSE, together with impairment of £129k reflecting lower than forecast revenue from the asset.

Plans for 2024/25

CPEC is expecting to see higher revenue growth in 2025/26. The company is also looking for external investment to help it scale and expand its offering and reach during 2025/26 and beyond.

7.4. Common Purpose Asia-Pacific Limited

Review of activities

CPAPL made a loss in 2023/24 of SG $425K / £237k (2022/23: loss of SG $152k / £92k). The company’s turnover increased by 42% with the addition of student programmes moved from CPSE, plus a significant growth in customized work. However, costs increased by 47% partly due to the higher customized delivery schedule and partly due to recharges to the parent entity.

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COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2024

Plans for 2024/25

Under the leadership of a new board Chairman, we are re-invigorating our proposition in Singapore and the wider region. The primary objective in 2024/25 is to add more value to our customers and to also build back up the reserves of the company by:

7.5. Common Purpose Hong Kong Limited (CPHK)

Review of activities

Activity in CPHK continued to be subdued during the year. The Common Purpose Programme was delivered, having been deferred from 2022/23. Several smaller customized programmes were also delivered.

The company generated revenue of HK$727k / £74k and returned a profit of HK$174k / £17k for the year.

Plans for 2024/25

CPHK will continue to deliver programmes for local clients while we look to build on our existing relationships in the region.

8. Reserves policy

CPCT holds reserves to ensure the stability of its mission, programmes, employment, and ongoing operations of the organization. Reserves are that part of CPCT’s unrestricted funds that are freely available to spend on any of the Trust’s purposes. Reserves provide a source of internal funds for organizational priorities such as new programmes, curriculum development and international expansion.

CPCT intends to meet its operational and strategic objectives by maintaining reserves at a level that allows it to carry on and develop its activities in line with its charitable objectives and strategy, while not holding excessive reserves that might limit the amount available to be spent on achieving those objectives.

The Trustees of CPCT are responsible for setting and monitoring the level of reserves for the CPCT group and for approving this policy. The Trustees are also responsible for approving the use of reserves for investment in new programmes or initiatives.

CPCT’s total reserves are made up of:

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REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2024

The policy of the Trustees is to maintain a level of unrestricted reserves that would enable the group to meet ongoing liabilities in the event of serious interruption to income, recession or orderly wind-down of the company in the event of closure.

CPCT’s unrestricted reserve level is set as a range. The upper end of the range is based on the output of a forward-looking model that allocates a risk weighting to unrestricted income and costs. CPCT has chosen a six-month time horizon, meaning that at any given time we aim to hold reserves to cover six months of our budgeted expenditure which is not covered by contracted or otherwise secured income.

The lower end of the range of reserves is a more qualitative assessment taking into account a potential worst-case scenario in the event of a sharp and unexpected economic downturn (the potential wind down costs of the organization). This assessment is based on committed expenditure (salaries, creditors) and ignores the potential upside of debtor receipts. It assumes the Charity should hold sufficient unrestricted reserves to ensure it could weather a significant downturn in its income.

Based on the above, the unrestricted reserves target is in the range of £1.5m to £1.8m. The upper level in the range provides six months’ cover of budgeted but not secured expenditure. The lower limit has been calculated to reflect the costs of an orderly wind down of the Charity’s business.

The higher range compared to last year’s range of £750k to £1m reflects an increase in budgeted but unsecured income from CPEC and the continuing pressure on programmes revenue across the business.

The Trustees recognize that the unrestricted reserves at the balance sheet date are negative and therefore significantly below the target range for the reasons outlined above. The Trustees are committed to taking all action necessary to bring the level back to within the target range as soon as practicable over the next few years.

It is also the Trustees’ policy that all companies within the CPCT group should hold positive unrestricted reserves. Where a company has negative reserves, the board will take appropriate remedial action to return the reserves to positive.

9. Reference and administrative details

Charity number: 1023384 Company number: 2832875 Registered office: Monmouth House, 38 – 40 Artillery Lane, London E1 7LS

10. Advisers

Auditors: HaysMac LLP, 10 Queen Street Place, London EC4R 1AG Bankers: National Westminster, 250 Regent Street, London W1B 3BN Solicitors: Ashurst LLP, London Fruit & Wool Exchange, 1 Duval Square London E1 6PW

11. Trustees and directors

Lynna Chandra Mark Linder Jonathan Donner David Robinson (resigned 31 January 2024) Christine Ennew (appointed 15 Dec 2023) Shuvo Saha David Grace (Chair) Janis Sanders Sanjeev Gupta Vandana Saxena Poria (resigned 3 May 2024) Peter Kulloi

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YEAR ENDED 31 JULY 2024

All served throughout the year ended 31 July 2024, unless otherwise indicated.

The group’s Chief Executive Officer is Adirupa Sengupta.

12. Structure, governance and management

The Common Purpose Charitable Trust is a company limited by guarantee with charitable status. The governing documents of the Trust are its Memorandum and Articles of Association.

b. Methods adopted for the recruitment and appointment of Trustees

When board vacancies arise, the directors identify any skills or experience needs of the board. They utilize existing networks of suitably qualified people to approach as potential directors. Candidates are recommended to the board nominations committee, which reviews the recommendation and conducts interviews of candidates. Prospective Trustees are briefed on the nature and work of the organisation, invited to meet the board and the executive and, if the board approves, appointed at the next board meeting. Appointments are ratified at the following annual general meeting.

We encourage people interested in becoming Trustees to apply on our website.

c. Policies and procedures for the induction of Trustees

All Trustees are offered an induction, which is tailored to suit their individual requirements. Each new Trustee receives an information pack as above which informs them of their role, the management structure and the policies and systems in place. New Trustees are invited to attend a course day to see Common Purpose in action, as well as participating in other Common Purpose events.

d. Directors’ insurance and indemnities

The Trustees have the benefit of the indemnity provisions contained in the Trust’s Articles of Association, and the Trust has maintained throughout the year directors’ and officers’ liability insurance for the benefit of the Trust, the directors and its officers.

13. Board sub-committees

Audit and Risk Committee

The Audit and Risk Committee (ARC) meets regularly to review and advise the board on all financial and risk matters as they relate to the group. ARC met nine times during the year. Areas of review included:

The ARC members are Jan Sanders (Chair), David Grace (appointed 31 December 2023). Sanjeev Gupta stepped down from the ARC on 31 December 2023. Christine Ennew was appointed on 15 October 2024). The Group CEO and Group Finance Director / Company Secretary attend ARC meetings.

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YEAR ENDED 31 JULY 2024

14. Organisational structure and decision making

The Trustees of The Common Purpose Charitable Trust meet quarterly to review the direction and performance of the organisation. They also set and agree the strategy to ensure that the organisation meets its aims.

The Chief Executive is responsible for the leadership of the organisation. The Trustees review the progress of the strategic objectives of the companies within the group and act to safeguard the organisation’s independence and brands.

The Trustees set the salary of the Group Chief Executive Officer, who is delegated to set the salaries of senior management. These are benchmarked against average management salaries for the sector. The aggregate emoluments of the key management personnel were £1,086k (2022/23: £996.2k). Key management personnel includes heads of five business units and four support teams (Operations, Finance, Marketing and IT). Support costs are incurred centrally and recovered from revenue generating business units.

In each local area in which Common Purpose operates in the UK, a Local Advisory Group is set up. The group is made up of local leaders from the public, private and voluntary sectors. The Local Advisory Group ensures that participant groups are diverse and reflect the make-up of the local area. The names of members of all Local Advisory Groups are published on the Common Purpose website.

Local Advisory Groups are advisory only. They have no legal, financial, or managerial responsibility for Common Purpose. They are not representative bodies either. All Advisory Group members attend as individuals in a voluntary and unpaid capacity, which they are invited to take on in their personal, rather than professional, roles.

If any issue arises at Advisory Group meetings which conflicts with their professional role, members exclude themselves from that section of the discussion.

15. Risk Review Statement

The Trustees have established a regular risk assessment which identifies the major foreseeable risks faced by the Trust, assessing their likelihood and impact, and as appropriate, implementing measures to mitigate these risks. The Audit and Risk Committee regularly reviews the risk register, which identifies the major risks to which the Trust is exposed. The risk register assigns a likelihood and impact score to each identified risk and assigns both management and board responsibility for oversight. The scores are then assigned a colour (red, amber, green) with the most serious risks, and the appropriate mitigation strategy and actions for each risk, being closely monitored. The risk register is also presented to the board semiannually.

Major risks discussed and addressed at board level include:

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Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2024

16. Going concern

In March 2025 the Trustees formally reviewed an updated cash flow forecast to March 2026 for the group. Based on the assumptions made by management, this showed the Charity remaining cash flow positive throughout the period.

The Trustees acknowledge, however, that there are material uncertainties which may cast doubt upon this assessment. These uncertainties arise from the risk of a continued economic downturn impacting the Charity’s unrestricted reserves and the inability to bring the Charity’s EdTech platform to profitability quickly enough to support other activities of the Charity. The main uncertainties are the ability of the company to generate sufficient cash from its unrestricted businesses to meet its liabilities, and an inability of CPEC to generate sufficient returns to repay CPCT’s investment.

In response to this situation the directors have obtained relevant professional advice and taken the following actions:

  1. restructured the group’s business, both to become more efficient and reduce the ongoing cost base and also to help ensure a greater focus on those activities that are considered more likely to generate higher revenues and higher net margins going forward. This is supported by a revised budget and detailed sensitivity analysis

  2. introduced new products and services which are expected to be more attractive in the markets in which the group operates, and which should also enable the group to achieve higher net margins from utilising them

  3. taken active steps in seeking to realise value from Evolve Careers through the intended sale of equity to new shareholders, which will either dilute the group’s shareholding or result in the sale of some or all of the group’s investment. The directors believe the group’s investment and the intangible asset created by Evolve Careers have values in excess of the amounts invested and included in the financial statements

  4. taken active steps to seek unrestricted grant funding that will help fund the group’s unrestricted costs, including the likely costs of any further restructuring which might become necessary.

The Trustees believe that notwithstanding the inherent uncertainties that currently exist, the strength of the Trust’s underlying business, management’s ongoing relationships with key donors and clients, as well as the actions being taken to mitigate the losses of the last two years, mean that the Trust remains financially sustainable and will remain a going concern for at least the next twelve months from the date of approval of these accounts.

In conclusion, whilst the directors have implemented a number of measures in attempt to overcome the ongoing financial difficulties, the outcomes of these measures are as yet unknown, and hence the reason why they consider there to be a material uncertainty.

17. Statement of Trustees’ responsibilities

The Trustees, who are also the directors and members of The Common Purpose Charitable Trust 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).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable Trust and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable Trust for that period.

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

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Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

COMMON PURPOSE CHARITABLE TRUST

REPORT OF THE TRUSTEES

YEAR ENDED 31 JULY 2024

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable Trust 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 charitable Trust and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

A resolution re-appointing Haysmacintyre LLP will be proposed at the AGM in accordance with s485 of the Companies Act 2006.

In preparing this report the Trustees have taken advantage of the exemptions available to small companies (including the exemption from preparing a strategic report).

Approved by the Board of Trustees on 21 March 2025 and signed on its behalf by:

(Signed by:

 E7AF27979AC74DA...

David Grace Trustee

(



Jan Sanders Trustee

14

Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

COMMON PURPOSE CHARITABLE TRUST

Opinion

We have audited the financial statements of Common Purpose Limited (the ‘company’), for the year ended 31 July 2024, which comprise the Profit and Loss account, Balance sheet 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 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:

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 company 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.

Material uncertainty relating to going concern

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

We draw attention to note 1(a), on page 22 of these financial statements, which describes the material uncertainty relating to the Charity’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

As shown on the Statement of financial activities, on page 18, the Charity has incurred a deficit on its unrestricted funds this year, amounting to £1,104k, which has led to the Charity’s unrestricted funds being £661k in deficit, at the Balance sheet date. Despite this, the Charity is in an overall net asset position, of £688k, as a consequence of the £1,348k of restricted funds held as at 31 July 2024.

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

COMMON PURPOSE CHARITABLE TRUST

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.

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

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement set out on page 13, the directors 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 directors 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 directors are responsible for assessing the company’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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Based on our understanding of the company and industry, we identified that the principal risks of noncompliance with laws and regulations related to Company Law applicable in England and Wales, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, income tax, payroll tax and sales tax.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:

16

Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

COMMON PURPOSE CHARITABLE TRUST

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located 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 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 company's members 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 company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

(pee by:

Steven Harper (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditor

10 Queen Street Place London EC4R 1AG

Date: 26 March 2025

17

Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

COMMON PURPOSE CHARITABLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES (including income and expenditure account)

FOR THE YEAR ENDED 31 July 2024

Note
Income from
Donated goods and services
Charitable activities:
Open programmes
Student programmes
Grants
Customised programmes
Other Income
Other trading activities
Total
Expenditure on
Charitable activities:
Open programmes
Student programmes
Grant-based programmes
Customised programmes
Other trading activities
Total
6
Net (expenditure) / income
Transfers between funds
Net movement in funds
Fund balances brought forward
as at 1 August
Fund balances carried forward
as at 31 July		 Unrestricted
Restricted
Total funds
Funds
Funds
£000s
£000s
£000s
160
0
160
964
0
964
656
0
656
578
3,105
3,683
1,423
0
1,423
38
0
38
10
0
10
3,829
3,105
6,934
1,522
0
1,522
843
0
843
377
2,195
2,572
1,874
0
1,874
317
0
317
2023/24















Unrestricted
Restricted
Total funds
Funds
Funds
£000s
£000s
£000s
156
0
156
1,068
0
1,068
838
0
838
521
1,247
1,768
1,357
0
1,357
91
0
91
210
0
210
2022/23
4,241
1,247
5,488
1,324
0
1,324
1,223
0
1,223
538
1,225
1,763
1,540
0
1,540
342
0
342
4,933
2,195
7,128		 4,967
1,225
6,192
(726)
22
(704)
26
(26)
0
(700)
(4)
(704)
1,143
443
1,586
(1,104)
910
(194)
35
(35)
0
(1,069)
875
(194)
443
439
882
(626)
1,314
688		 443
439
882

The accompanying notes on pages 22 to 38 form part of the financial statements.

All transactions are derived from continuing activities. All recognized gains and losses are included in the Statement of Financial Activities.

18

Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

Company registered number: 2832875

THE COMMON PURPOSE CHARITABLE TRUST

CONSOLIDATED BALANCE SHEET

AS AT 31 JULY 2024

2023/24 2022/23
Note £000s £000s £000s £000s
FIXED ASSETS
Intangible fixed assets 7 291 27
Tangible fixed assets 8 23 37
314 64
CURRENT ASSETS
Debtors 9 1,034 1,259
Cash at bank and in hand 1,052 2,016
Total current assets 2,086 3,275
Creditors: amounts falling due
within one year 10 (1,545) (2,210)
Net current assets 541 1,064
LONG TERM LIABILITIES
Creditors: amounts falling due in more
than one year		 11 (167) (246)
Total long term liabilities (167) (246)
TOTAL ASSETS LESS LIABILITIES 688 882
RESERVES
Restricted funds 15 1,314 439
Unrestricted funds 14 (626) 443
688 882

The accompanying notes on pages 22 to 38 form part of the financial statements.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

The financial statements were approved and authorized for issue by the Board of Trustees on 21 March 2025 and were signed below on its behalf by:

(Gen  E7AF27979AC74DA... by: (  DocuSignedDE61F20858E442C... by: David Grace Jan Sanders Trustee Trustee

19

Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

Company registered number: 2832875

THE COMMON PURPOSE CHARITABLE TRUST

BALANCE SHEET (TRUST ONLY)

AS AT 31 JULY 2024

2024 2023
Note £000s £000s £000s £000s
FIXED ASSETS
Intangible fixed assets 7 806 0
Tangible fixed assets 15 23
821 23
CURRENT ASSETS
Debtors 9 2,738 1,152
Cash at bank and in hand 844 1,858
Total current assets 3,582 3,010
Creditors: amounts falling due within
one year		 10 (1,602) 2,126
Net current assets 1,980 5,136
Creditors: amounts falling due in more
than one year		 11 (167) (247)
Net long term liabilities (167) (248)
TOTAL ASSETS LESS LIABILITIES 2,634 4,911
RESERVES
Restricted funds 1,314 439
Unrestricted funds 1,320 693
2,634 843

The Common Purpose Charitable Trust made a positive contribution to reserves before consolidation of £1.8m (2022/23: loss of £40.6k).

The accompanying notes on pages 22 to 38 form part of the financial statements.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

The financial statements were approved and authorized for issue by the Board of Trustees on 21 March 2025 and were signed below on its behalf by:

(Gen  E7AF27979AC74DA... by: (  DocuSignedDE61F20858E442C... by: David Grace Jan Sanders Trustee Trustee

20

Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

THE COMMON PURPOSE CHARITABLE TRUST

CONSOLIDATED CASH FLOW STATEMENT

YEAR ENDED 31 JULY 2024

2024 2023
£000s £000s
Net cash inflow / (outflow) from operating activities 12 (614) 871
Capital expenditure
Payments to acquire tangible and intangible fixed assets (312) (25)
Increase / (decrease) in cash (964) 766
Cash at bank and in hand at start of year 2,016 1,250
Cash at bank and in hand at end of year 1,052 2,016

The accompanying notes on pages 22 to 37 form part of the financial statements.

The balance of £1.052m cash at bank and in hand is made up as follows:

Cash at bank and in hand 2023
£000s
2,016
2,016		 Change in
year
2024
£000s
£000s
(964)
1,052
(964)
1,052
Group

21

Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2024

1. ACCOUNTING POLICIES

Common Purpose Charitable Trust is a charitable company limited by guarantee. Further details are shown in section 15 of the Trustees’ Annual Report.

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The charitable Trust is a public benefit entity for the purposes of FRS 102 and therefore the Trust also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP, Second Edition, effective 1 January 2019), the Companies Act 2006 and the Charities Act 2011, and Regulations made thereunder.

(a) Going concern

In March 2025 the Trustees formally reviewed an updated cash flow forecast to March 2026 for the group. Based on the assumptions made by management, this showed the Charity remaining cash flow positive throughout the period.

The Trustees acknowledge, however, that there are material uncertainties which may cast doubt upon this assessment. These uncertainties arise from the risk of a continued economic downturn impacting the Charity’s unrestricted reserves and the inability to bring the Charity’s EdTech platform to profitability quickly enough to support other activities of the Charity. The main uncertainties are the ability of the company to generate sufficient cash from its unrestricted businesses to meet its liabilities, and an inability of CPEC to generate sufficient returns to repay CPCT’s investment.

In response to this situation the directors have obtained relevant professional advice and taken the following actions:

  1. restructured the group’s business, both to become more efficient and reduce the ongoing cost base and also to help ensure a greater focus on those activities that are considered more likely to generate higher revenues and higher net margins going forward. This is supported by a revised budget and detailed sensitivity analysis

  2. introduced new products and services which are expected to be more attractive in the markets in which the group operates, and which should also enable the group to achieve higher net margins from utilising them

  3. taken active steps in seeking to realise value from Evolve Careers through the intended sale of equity to new shareholders, which will either dilute the group’s shareholding or result in the sale of some or all of the group’s investment. The directors believe the group’s investment and the intangible asset created by Evolve Careers have values in excess of the amounts invested and included in the financial statements

  4. taken active steps to seek unrestricted grant funding that will help fund the group’s unrestricted costs, including the likely costs of any further restructuring which might become necessary.

The Trustees believe that notwithstanding the inherent uncertainties that currently exist, the strength of the Trust’s underlying business, management’s ongoing relationships with key donors and clients, as well as the actions being taken to mitigate the losses of the last two years, mean that the Trust remains financially sustainable and will remain a going concern for at least the next twelve months from the date of approval of these accounts.

In conclusion, whilst the directors have implemented a number of measures in attempt to overcome the ongoing financial difficulties, the outcomes of these measures are as yet unknown, and hence the reason why they consider there to be a material uncertainty.

22

Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2024

(b) Financial instruments

The Trust and group hold only basic financial instruments which are initially recognized at cost or transaction value, and do not require subsequent adjustment to fair value.

(c) Revenue recognition

In the view of the Trustees, in applying the accounting policies adopted, judgement is required in relation to recognition of accrued income. The Trust accrues income on the following basis where it is contracted in one financial year, but the programme is being delivered in the following financial year:

Programme delivery date % of contracted amount First quarter of the following financial year 75% Second quarter of the following financial year 50% Third quarter or beyond 0%

(d) Fund accounting

Unrestricted funds comprise accumulated surpluses and deficits on general funds. They are available for use at the discretion of the Trustees in furtherance of the general charitable objectives of the Trust.

Restricted funds are funds subject to specific restricted conditions imposed by the donors.

(e) Income

Income represents the total income receivable during the year comprising fees from open programmes, student programmes, customized programmes, as well as grants for large international projects, bank interest and other income.

Income and expenditure related to open courses is matched and any surplus on a course is recognized in the accounting year in which it arises. Course deficits are recognized as soon as anticipated. Income is fully recognized on commencement of courses including those that cease after the year end as no refunds are given once a course has commenced and hence full entitlement to the income occurs on commencement.

Income and expenditure related to student and customized programmes is matched and any surplus on a course is recognized in the accounting year in which it arises. Due to the nature of the programmes, income is partially based on the services rendered within the financial year. Where a client makes a legally binding commitment to purchase a customized programme, but the programme is not running until the next financial year, income in accrued as per note 1(b) above. This it reflects the timing of the work undertaken before programme delivery, which includes preparing curriculum, organising speakers, developing the programme structure, and logistics.

In line with FRS 102 Charities SORP, where donors impose timelines in relation to delivery of their programmes, restricted income is deferred rather than recognized in the year of receipt, as this represents a precondition set by the donor. It also better matches income to the period of expenditure to which is relates.

Where Common Purpose has been donated facilities, amounts are included in income at the estimated value to the Trust of the donated facilities with an equal and opposite amount being included in expenditure.

23

Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2024

(f) Expenditure

Expenditure is charged to the Statement of Financial Activities on an accrual’s basis.

Direct costs are charged to the appropriate category of charitable activity along with appropriate allocation of support costs, which are defined as those costs which are necessary to deliver the charitable activity but do not constitute its output. Support costs include governance costs. More detail as to the method of their allocation is given in note 6b to the accounts.

Governance costs are those non charitable costs which are necessary for the general running of the Trust and include items such as audit and professional services fees.

(g) Depreciation and amortisation

Depreciation is calculated on a monthly basis so as to write off the cost of tangible fixed assets over their expected useful economic lives. The principal annual rates and bases used for this purpose are:

Leasehold improvements 10% straight line Computer equipment 33% straight line

Amortisation on trademarks is calculated on an annual basis over ten years. Amortisation on software costs is calculated on an annual basis over three years. Amortisation of software with a perpetual licence is calculated on an annual basis of ten years.

(h) Intangible assets

Internally developed software is capitalised as an intangible asset when the capitalisation requirements of the relevant accounting standards have been met and when the directors consider it prudent and appropriate to do so. Internally generated intangible assets are valued at depreciated historic cost as a proxy for fair value.

Intangible assets that have been separately purchased are initially capitalised at their cost of acquisition and written down as necessary if there is any evidence at the time of acquisition that the fair value is less than the cost of acquisition.

Amortisation of both internally generated intangible assets and externally acquired intangible assets is calculated on an annual basis using the straight-line method based on the expected useful life of the assets, which the directors have determined to be ten years. Where factors, such as technological advancement or market developments, indicate that the residual value or useful life have changed, the residual value, useful life or amortisation rate are amended as necessary to reflect the new circumstances.

All intangible assets are also reviewed for impairment if any of the above factors indicate that their carrying values may be impaired or if there is any other evidence to suggest that their fair market values may be less than their carrying value.

(i) Investment in subsidiaries

Investments in subsidiaries are accounted for at their initial cost, less an impairment provision if the expected recoverable amount is lower than the carrying value. Tests for impairment are only carried out if there is some indication that the carrying value may be impaired. Material impairments are disclosed separately.

(j) Leased assets

Payments under operating leases are charged to the Statement of Financial Activities.

24

Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2024

(k) Basis of consolidation

The group financial statements consolidate the financial statements of The Common Purpose Charitable Trust, Common Purpose Ltd, Common Purpose Student Experiences Ltd, Common Purpose Asia-Pacific Ltd and Common Purpose Hong Kong Ltd. Two subsidiaries, Common Purpose UK and Common Purpose International are no longer trading and were struck off in October 2023. The companies however were live as at 31 July 2023 and the balances on their accounts have been included in the consolidation. The financial statements of CPSE’s branch in Australia are consolidated into the accounts of CPSE. No statement of financial activities is presented for The Common Purpose Charitable Trust as provided by section 408 of the Companies Act 2006.

(l) Foreign currency translation

Transactions denominated in in foreign currencies are initially translated into sterling at the exchange rate at the transaction date. Monetary items are retranslated at the balance sheet date and the resulting differences are reflected in the Statement of Financial Activities.

2. NET MOVEMENT IN FUNDS

ET MOVEMENT IN FUNDS
2024 2023
£000s £000s
The net movement in funds is arrived at after charging:
Depreciation and amortisation 62 31
Auditors’ remuneration for audit services 64 64
Auditors' remuneration for non-audit related services 11 7
Operating lease rentals - land and buildings 107 107

Remuneration for audit services for 2023 is re-stated here, having been understated in the 2023 accounts by £17,500 as a result of a misallocation of the costs to an incorrect account code.

25

Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2024

3. STAFF NUMBERS AND EMOLUMENTS - Group and Trust

The average number of persons employed by the group during the year was:

Programme sales and delivery
Operational support
Staff costs
Wages and salaries
Social security costs
Employer Pension Contribution		 2024
2023
Number
Number
60
75
10
15
70
90
£
£
3,007,926
3,156,649
299,177
307,039
100,664
98,209
3,407,767
3,561,897

The number of employees whose emoluments for the year fell within the following bands:

£60,000 - £69,999
£70,000 - £79,999
£80,000 - £89,999
£90,000 - £99,999
£100,000 - £109,999
£110,000 - £119,999
£150,000 - £159,999
£160,000 - £169,999
Total
Aggregate emoluments of the Senior Management Team:
Salary
Social security costs
Pension		 Number
Number
2
5
4
4
5
2
0
1
1
1
1
0
0
1
1
0
14
14
£
£
958,388
871,847
101,179
99,728
26,263
24,648
1,085,830
996,223

Termination payments of HK$33,652 / £3,474 were made during the year (2022/23: £32,340).

The senior management team includes those employees who report directly to the CEO, made up of the heads of business units and support teams. During 2023/24 the senior management team consisted of ten people employed by CPCT, and one employed by CPAPL. Employer pension contributions relate to defined contribution arrangements only and these are charged to expenditure as they fall due.

26

Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2024

4. RESULTS FROM COMMON PURPOSE CHARTIABLE TRUST TRADING SUBSIDIARIES

4a. RESULTS OF TRADING SUBSIDIARIES

As at the balance sheet date the group had three trading subsidiary companies: Common Purpose Limited (CPL), Common Purpose Hong Kong Ltd and Common Purpose Evolve Careers Ltd (CPEC). CPEC was established in July 2023 but did not begin trading until 1 August 2023.

CPL is a wholly owned subsidiary of The Common Purpose Charitable Trust and is incorporated in the UK. It manages licensing arrangements, the provision of services to the Common Purpose licensees, the group’s commercially based work and open programmes in the UK. CPHK is a wholly owned subsidiary of CPL. CPEC was transferred to CPCT on 31 July 2024.

CPL was incorporated in July 2013 and became active on 1 August 2015 when its business was transferred from Common Purpose Customised Ltd. It covenants its taxable profits to The Common Purpose Charitable Trust.

Given the size of the loss in CPL in 2023/24, the directors of CPCT entered into a 3-year loan agreement with CPL for the funding costs in 2023/24 and the anticipated funding need for 2024/25, together with interest charged at base rate plus 2.5%. On 21 March 2025, the directors of CPCT agreed to capitalize a portion of this loan to help restore the balance sheet of CPL. On 21 March 2025, CPL issued 250,000 ordinary shares with a nominal value of £1.00 per share at a premium of £3.00 per share (i.e. £4.00 per share), resulting in a share premium of £750,000. The total proceeds of £1m were allocated as follows:

The share issuance was undertaken to provide additional working capital for the subsidiary’s trading activities, with all shares fully paid and held by the charity.

27

Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2024

Common Purpose Limited

Common Purpose Evolve
Profit and loss account
Turnover
Net cost recoveries from other group entities
Administrative expenses
Retained (loss) / profit
Balance sheet
Fixed assets
Current assets
Current liabilities
(Deficit) / surplus on reserves
Profit and loss account
Turnover
Net cost recoveries from other group entities
Administrative expenses
Loss for the period
Balance sheet
Fixed assets
Current assets
Current liabilities
Surplus on reserves		 2024
2023
£000s
£000s
2,088
2,368
(3,364)
(2,221)
(1,276)
147
25
42
508
976
(1,741)
(950)
(1,208)
68
Careers Limited
2024
2023
£000s
£000s
35
0
(130)
0
(243)
0
(338)
0
0
0
51
0
(18)
0
33
0

28

Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2024

CPHK was incorporated in December 2009 as a private limited company. CPL bought the 100% of the shares in the company for HK$2.00 on 4 August 2022. The company’s results for the year are included in the CPCT group consolidation.

Common Purpose Hong Kong Limited

Income
Income from trading activities
Net cost recoveries from other group entities
Bank interest
Total income		 2024
2023
HK $000s
HK $000s
727
100
72
244
0
1
799
345		 2024
2023
£000s
£000s
74
11
7
26
0
0
81
37
Expenditure
Trading activities
Retained profit / (loss)
Assets
Liabilities
(Deficit) on reserves		 (625)
(996)
174
(651)
932
339
(1,066)
(647)
(134)
(308)		 (64)
(105)
17
(68)
95
36
(108)
(68)
(13)
(32)

4b. RESULTS OF CHARITABLE SUBSIDIARIES

As at the balance sheet date the group had one active UK charitable subsidiary, Common Purpose Student Experiences Limited (company no. 09526939) (CPSE), together with a subsidiary in Singapore (Common Purpose Asia Pacific Ltd). Its two other UK subsidiaries, Common Purpose UK (company no. 03556983, charity no. 1023384) and Common Purpose International (company no. 03207453, charity no. 1056573) were struck off in October 2023.

Common Purpose Student Experiences also operated a branch in Australia. These results are consolidated with those of CPSE.

29

Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2024

Common Purpose Student Experiences Limited

2024 2023
Income £000s £000s
Income from charitable activities 507 838
Other income 0 16
Proceeds from disposal of programme related investment 286 0
Total income 793 854
Expenditure
Charitable activities (574) (1,223)
EdTech investment 0 (329)
Exceptional Write off (115) 0
Total expenditure (689) (1,552)
Net movement in funds 104 (698)
Assets 410 173
Liabilities (436) (304)
(Deficit) on reserves (27) (131)
Common Purpose Asia-Pacific Limited
2024 2023 2024 2023
Income SG $000s SG $000s £000s £000s
Income from charitable and trading activities 919 601 544
365
Net cost recoveries from other group entities (686) 52 (405) 32
Total income 233 653 139
397
Expenditure
Charitable activities (658) (805) (375) (489)
Net movement in funds (425) (152) (236) (92)
Assets 755 806 449
490
Liabilities (1,112) (738) (646) (448)
(Deficit) / surplus on reserves (357) 68 (197) 42

30

Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2024

5. TRUSTEES’ REMUNERATION AND REIMBURSED EXPENSES (Group and Trust)

No emoluments were paid during the year (2022/23: nil). Nil expenses were reimbursed to Trustees (2022/23: nil).

6a. ANALYSIS OF EXPENDITURE

Open programmes
Student programmes
Grants
Customised programmes
Other trading activities		 £000s
£000s
£000s
942
580
1,522
843
0
843
2,224
348
2,572
1,017
857
1,874
288
29
317		 £000s
£000s
£000s

908
416
1,324

682
541
1,223

1,551
212
1,763

1,012
528
1,540

225
117
342
5,314
1,814
7,128
4,378
1,814
6,192

6b. ANALYSIS OF SUPPORT COSTS

Open programmes
Student programmes
Grants
Customised programmes
Other trading activities		 Central support
costs
Licence fee
Governance
Total
£000s
£000s
£000s
£000s
546
10
24
580
0
0
0
0
328
6
14
348
806
15
36
857
27
1
1
29
2024		 Central
support costs
Licence fee
Governance
Total
£000s
£000s
£000s
£000s

393
8
15
416

485
48
8
541

200
4
8
212

498
11
19
528

111
2
4
117
2023
1,707
32
75
1,814
1,687
73
54
1,814

Support costs are apportioned on the basis of the percentage of each activity’s direct expenditure. Central services include Finance, HR, Marketing and Operational support. Support costs are fully recovered from business units.

Licence fee represents the charge to licensees for using the group’s intellectual property and IT services.

31

Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2024

7a. INTANGIBLE FIXED ASSETS - GROUP

COST
At 1 August 2023
Additions
At 31 July 2024
AMORTISATION
At 1 August 2023
Charge for year
At 31 July 2024
NET BOOK VALUE
At 31 July 2024
At 31 July 2023		 Software Costs
£000s
68
305
373
45
40
85
288
23		 Group
Trademarks
£000s
8
0
8
4
1
5
3
4		 Total
£000s
76
305
381
49
41
90
291
27

32

Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2024

7b. INTANGIBLE FIXED ASSETS - TRUST

COST
At 1 August 2023
Additions
At 31 July 2024
AMORTISATION
At 1 August 2023
Charge for year
At 31 July 2024
NET BOOK VALUE
At 31 July 2024
At 31 July 2023		 Software Costs
£000s
58
0
58
40
6
46
12
18		 Investment in
subsidiaries
£000s
806
806
0
0
0
806
0		 Total
£000s
58
806
864
40
6
46
818
18

Included in the table above under Additions are software costs associated with the development by CPEC of its EdTech platform. These costs were funded via a loan from CPCT to CPEC, which CPCT converted to equity in CPEC at 31 July 2024.

33

Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2024

8. TANGIBLE FIXED ASSETS – GROUP

COST
At 1 August 2023
Additions
At 31 July 2024
DEPRECIATION
At 1 August 2023
Charge for year
At 31 July 2024
NET BOOK VALUE
At 31 July 2024
At 31 July 2023		 Leasehold
improvements
£000s
28
2
30
23
3
26
3
5		 Group
Computer
equipment
Total
£000s
£000s
114
142
5
7
119
149
82
105
18
21
100
126
20
23
32
37

Included in the table above are assets related to the parent charitable trust with a net book value of £15k (2022/23: £22.6k).

34

Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2024

9. DEBTORS

DEBTORS DEBTORS DEBTORS
2024
2023
2024
2023
£000s
£000s
£000s
£000s
Tuition fees and sponsorship income
680
842
711
159
Prepayments
152
24
124
26
Accrued income
202
379
0
41
Prepaid marketing material
0
1
0
0
Amounts due from related undertakings
0
14
1,903
926
1,034
1,260
2,738
1,152
Group
Trust
£000s
£000s
680
842
152
24
202
379
0
1
0
14
1,034
1,260		 £000s
£000s

711
159

124
26

0
41

0
0

1,903
926

2,738
1,152

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Sundry creditors and accruals
Other taxes and social security
Deferred income
Amounts due to group undertakings		 Group Trust
2024
2023
2024
2023
£000s
£000s
1,115
838
155
96
275
1,276
0
0
1,545
2,210		 £000s
£000s

1,047
480

75
51

179
1,121

301
473

1,602
2,125

Deferred income relates to work due to be undertaken in the coming year. The brought forward deferred income has been released in full into the current year’s Statement of Financial Activities.

11. LOAN UNDER THE CORONAVIRUS BUSINESS INTERRUPTION LOANS (CBIL) SCHEME

In August 2020, CPCT received a loan under the CBIL Scheme for £400,000. The loan is repayable over six years. Repayments on the loan began in August 2021. The Trustees have decided to maintain the loan as a liquidity buffer. The Audit and Risk Committee reviews the Charity’s cash position every three months to determine whether the loan can be partially or fully repaid. The balance of the loan as at 31 July 2024 was £166.7k.

Of the total loan repayable of £167k, an amount of £80k is due within one year. The remainder of the loan repayments are due more than one year from the balance sheet date.

35

Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2024

12. RECONCILIATION OF OPERATING SURPLUS TO NET CASH INFLOW FROM OPERATING ACTIVITIES

Net (decrease) / increase in funds
Depreciation and amortisation
Decrease in debtors
(Decrease) / increase in creditors
Net cash (outflow) / inflow from operating activities		 2024
2023
£000s
£000s
(194)
(704)
21
31
224
442
(665)
1,102
(614)
871
Group		 2024
2023
£000s
£000s
(194)
(704)
21
31
224
442
(665)
1,102
(614)
871
Group
871

13. ANALYSIS OF CHANGES IN CASH AND CASH EQUIVALENTS DURING THE YEAR

YSIS OF NET ASSETS BETWEEN FUNDS
2023
£000s
Cash at bank and in hand
2,016
2,016
2024
Unrestricted
Funds
£000s
Fixed assets
314
Current assets
772
Current liabilities
(1,545)
Long term liabilities
(167)
(626)
2023
Unrestricted
Funds
£
Fixed assets
64
Current assets
2,836
Current liabilities
(2,210)
Long term liabilities
(247)
443		 Change in
year
£000s
(964)
(964)
Restricted
Funds
£000s
0
1,314
0
0
1,314
Restricted
Funds
£
0
439
0
0
439		 2024
£000s
1,052
1,052
Total Funds
£000s
314
2,086
(1,545)
(167)
688
Total Funds
£
64
3,275
(2,210)
(247)
882

14. ANALYSIS OF NET ASSETS BETWEEN FUNDS

36

Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2024

15. RESTRICTED FUNDS

15. RESTRICTED FUNDS
2024
American Express Foundation
British Council Bangladesh
Crown Prince Foundation
Global Diversity Foundation
Grants for the development of Europe 101 programme
Grants for Women Emerging from Isolation programme
National Lottery Heritage Fund
Newton-Khaledi Fund
Swiss Philanthropy Foundation
TOTAL
2023
American Express Foundation
British Council Bangladesh
Creative Scotland
Crown Prince Foundation
Global Diversity Foundation
Grants for the development of Europe 101 programme
Grants for Women Emerging from Isolation programme
Anonymous donation for EdTech
MAVA Foundation
Newton-Khaledi Fund
Swiss Philanthropy Foundation
TOTAL		 Brought
forward
Income
Expenditure
Transfers /
gains
Carried
forward
324
2,572
1,752
1,144
0
10
0
10
30
10
5
35
13
0
0
13
4
63
32
(35)
0
16
4
20
0
0
345
328
17
6
0
0
6
46
101
58
89
439
3,105
2,195
(35)
1,314
Brought
forward
Income
Expenditure
Transfers /
gains
Carried
forward
108
1,098
882
324
0
20
20
0
0
16
16
0
0
30
0
30
0
13
0
13
3
35
34
4
39
40
63
16
0
16
16
0
293
(95)
172
(26)
0
0
7
1
6
0
67
21
46
443
1,247
1,225
(26)
439

16. OPERATING LEASE COMMITMENTS – LESS THAN FIVE YEARS

The Trust is committed to making the following minimum annual rental payments in respect of leases expiring:

Within:
more than one year and less than 5 years		 2024
2023
Land and
buildings
Land and
buildings
£000s
£000s
89
196

The charity has no equipment leases (2022/23: nil)

37

Docusign Envelope ID: CB5DE971-A00E-4A8D-97EC-6C1C0DABB000

THE COMMON PURPOSE CHARITABLE TRUST

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2024

17. RELATED PARTY TRANSACTIONS

During the year, no directors or management entered into any related party transactions. There were no other related party transactions in the year.

Companies within the CPCT group enter into transactions with other group companies. These transactions are generally to pay for staff engaged from other group entities, and to provide funding for programme costs where programmes were being delivered by a different group entity.

Beyond this, CPCT has provided intercompany support to CPEC to assist in the development of the EdTech platform as set out in notes 6 (Review of financial activities, page 4) and 7 (Performance and plans of individual subsidiaries, page 8) above.

Net inter-group debtor and creditor balances as at year end were as follows:

2024 2023
£000s £000s
Common Purpose Asia-Pacific Ltd (409) 338
Common Purpose Ltd (1,180) 322
Common Purpose UK 0 308
Common Purpose Customised Limited 0 (12)
Common Purpose Charitable Trust 1,680 (923)
Common Purpose International 0 (90)
Common Purpose Student Experiences Ltd (55) 70
Common Purpose Hong Kong Ltd (57) 0
Common Purpose Evolve Careers 22 0
Net intercompany debtor balance (0) 14

38