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← Trees For Cities

2025-03-31-accounts

Charity Registration No. 1032154

Company Registration No. 02874642

TRUSTEES’ REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2025

Trustees
 B Bardswell
J Bramley
J Capon (Chair)
S Gray (to 11 December 2024)
M Foster (from 1 August 2025)
M Hayer (from 4 April 2024)
A MacGillivray
B Miller
S Potter (from 1 August 2025)
J Rose (from 1 December 2024)
D Woodbine
S Workman (to 11 December 2024)
Chief Executive
K Sheldon
Charity number Charity number1032154 (England and Wales)
Company number
 Company number02874642 (United Kingdom)
**Principal address and Registered office ** Prince Consort Lodge
Kennington Park Place
London
SE11 4AS
Auditor AuditorSayer Vincent LLP
Chartered Accountants and Statutory Auditor
110 Golden Lane
London
EC1Y 0TG
Bankers BankersThe Co-operative Bank p.l.c. (main day to day bankers)
P.O. Box 101
1 Balloon Street
Manchester
M60 4EP

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Page

Trustees' report
 3

Independent auditor's report
 16

Statement of financial activities 20
 Statement of financial activities 20

Balance sheet
 21

Statement of cash flows 22
 Statement of cash flows 22

Notes to the accounts		 23

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The Trustees are pleased to present their report and accounts for the year ended 31 March 2025.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association, the requirements of a directors’ report as required under company law, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Our Purpose, Vision and Mission

Trees for Cities empowers people to plant and care for trees in towns and cities, targeting places where they have the greatest impact for people and nature. Through trees, we connect people to nature, enrich lives and create leafy, liveable places for today and future generations.

Our vision for the world is “ Urban trees for all. Cities where everybody can live healthy lives among thriving trees, woods and nature ”. Our organisational vision is underpinned by our mission to “ Make Trees Matter ” so that they are consistently valued as an intrinsic fabric of our cities.

Objectives and Activities

Our objects, as set out in our governing document are:

“The Charity is established to advance the education of the public in the appreciation of trees and nature, particularly with regard to their social and environmental value by the planting, protection and promotion of trees and green spaces everywhere and in particular in towns and cities.”

We achieve this by working closely with communities, landowners, partners and funders to deliver transformational change in towns and cities by greening neighbourhods, sharing knowledge and enhancing skills, and running inclusive community tree planting events across the UK, particularly in areas of environmental and social deprivation. The public benefits that shape our activities continue to be environmental protection and improvement, education, and health.

In shaping our objectives for the year and planning our activities, the trustees have given consideration to the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity (PB2)’.

Achievements and Performance in 2024-25

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Please see our 2024-25 Impact Report and our 2022-25 Turn of the Trees Strategy Report.

Plans for future periods

Plans for 2025-26 include:

o Review and relaunch our planting programmes to boost their financial and operational sustainability and impact.

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Financial Review

Overview

The financial year 2024–2025 was one of significant challenge, but also of resilience, learning, and strategic repositioning. Despite a deficit of £773,485, including an unplanned use of £816,296 in unrestricted reserves, we took decisive steps to reset the organisation’s cost base, improve operational resilience and focus on long-term sustainability.

Total income increased slightly to £5,381,036, up £154,120 from the previous year’s income of £5,226,916, reflecting the enduring support of our funders and the relevance of our mission. Expenditure rose by £394,694 to £6,174,419, compared to £5,779,725 in 2023–2024, driven by planned investments to support organisational growth and deliver on our commitments as well as inflationary pressures.

Our initial income plan for the year of £6,800,000 was ambitious. Under new leadership, we had invested in a strengthened senior management team and expanded capacity across the organisation to support this growth. However, we encountered a range of external factors - including the change in government, temporary closure of key grant programmes and increased competition for funding - as well as internal factors relating to resourcing levels and historical corporate funder management issues, meant that our increased income targets could not be met.

We reforecast quarterly and through the year we took decisive steps to reduce expenditure, saving £640,000 against planned levels. This included:

Following the year-end, we implemented a further organisational restructure, resulting in 10 additional redundancies in April 2025. These changes have significantly reduced our fixed cost base while retaining a strong core team capable of delivering impact and supporting recovery.

Due to the losses experienced, our unrestricted free reserves fell significantly below our policy minimum. This created challenges to our liquidity, agility and resilience and approach to risk as an organisation. In response, we applied a range of strategic improvements to reduce the likelihood of unplanned losses and rebuild the charity to ensure financial sustainability.

Steps already taken include:

Ongoing and future work:

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We have also boosted our fundraising resources to ensure we meet income targets for 2025-26. The charity is well placed to benefit from environmental sector funding trends including a welcome shift by many funders towards contributing longer-term, unrestricted and core income.

We are already seeing the impact of these measures. Our income plan for 2025-26, is focused, achievable and based on realistic assumptions. It sets a target of £4,936,000 (£329,852 lower than 2024–2025) allowing for a more cautions minimum expenditure plan that supports recovery while continuing to deliver highprofile, impactful projects. This approach gives us scope to exceed income targets, rather than needing to reduce them mid-year.

The plan includes one-off restructuring costs of £154,000 and forecasts a modest unrestricted surplus of £44,000. Any additional surplus will be used to rebuild reserves and strengthen our working capital position to avoid the risk of a deficit.

By the end of September 2025, we had already secured £4,284,000 (85%) of our planned income for 2025– 2026, ahead of previous years. Most income sources are expected to match last year’s levels, with a planned reduction in landowner contributions due to fewer delivery projects. With the improvements made internally and grants beginning to reopen, our funding forecasts suggest we may exceed our targets. We are closely monitoring progress against income and expenditure targets and remain prepared to adapt our delivery plans to protect financial sustainability.

This has been a year of learning, adaptation and bold action. We end the year with a clear path forward, new funding partnerships in place, and renewed confidence in our ability to continue to deliver high impact work while building long-term financial resilience.

Income and Expenditure

Income by Source

Income by source 31-Mar-25 31-Mar-24
(£) (£)
Corporate Partners 1,415,317 2,095,201
Grants 2,620,629 1,832,299
Local Government, Landowners
and Schools		 991,883 1,078,287
Individuals 313,382 195,772
Other 39,825 25,357
Total income 5,381,036 5,226,916

This year marked a shift in our funding mix, with main movements in income relate to corporate partners and grants. Grants increased by £788,330 largely due to an additional round of Urban Tree Challenge Fund and a National Lottery Heritage Fund grant for our Tree Equity in Hartlepool project. Other grants stayed at similar levels to 2023-24, but new opportunities from Trusts & Foundations were limited. Corporates reduced by £679,884 due to internal corporate funder management issues. Income from individuals increased by £117,610 as a result in investment in our individual giving programme.

Donations

Donations rose by £72,736 to £1,619,944 (2023-24: £1,547,208). Growth was driven by:

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While corporate donations declined by £313,954 to £803,859 (2023-24: £1,117,813), the proportion of unrestricted funding from donations grew from 43% to 51%, giving us greater flexibility to deliver impact — a shift in line with our longer-term strategic plan.

Charitable Activities

Income from charitable activities increased slightly by £65,074 to £3,710,164 (2023-24: £3,645,090), with mixed performance across programmes:

Fundraising

We invested in fundraising and marketing, increasing costs by £197,890 to £698,734 (2023-24: £500,844). The majority of this related to staff costs. The allocation of time to fundraising activities in the accounts for our fundraising team in was adjusted to enable them to be more focussed on unrestricted income generation as well as investing in capacity for our corporate partnerships team. As relationships with funders can take time to nurture, the effect of this investment will really make an impact in 2025-26. We also had a more stable individual giving team and used more paid advertising in order to increase individual giving income. This returned results with income from individual giving increasing by £117,610 in the year.

Other Expenditure

Support costs increased slightly by £25,003 to £441,755, which absorbed the cost of both an office move and a major systems upgrade to the Cloud. Savings of £70,000 were made against the plan for the year in order to mitigate the reduced income compared to plan.

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Reserves Policy

Trees for Cities holds unrestricted reserves in order to:

Our reserves policy is to hold no less than the cost of winding up the organisation in regard to meeting financial obligations such as redundancy, rent and contract payments.

The maximum level of unrestricted reserves that the organisation will hold will be the equivalent cost of six months of core operating expenditure (e.g. salaries, rent, contracts) plus the cost of winding up the organisation.

The ideal level of unrestricted reserves that the organisation will hold will be the equivalent to the cost of three months of core operating expenditure (e.g. salaries, rent, contracts) plus the cost of winding up the organisation.

If the unrestricted reserves exceed the maximum level, the management team will put in place a plan to spend down the additional amount unless such an amount has been ring-fenced for future investment or expansion.

The amounts for each level will be recalculated at the start of each financial year. Following the restructure, the reserve policy amounts for 2025-26 are:

Therefore the trustees’ policy, after assessing the above requirements and calculating the costs of winding up, is to hold general unrestricted reserves of between £570,000 and £1,830,000. As at the end of 2024-25 unrestricted free reserves held by the charity were £185,144.

At the end of 2024-25, total funds held by the charity were as follows:

31-Mar-25 31-Mar-24
(£) (£)
Restricted 216,115 176,000
Designated 92,761 90,065
General Unrestricted 218,981 1,035,277
Total Reserves 527,857 1,301,342
Unrestricted Free Reserves 185,144 1,007,632

Details of designated and restricted funds can be found in note 22 of the financial statements. The difference between the unrestricted funds and the free reserves is due to our tangible assets, which total £33,837 (202324: £27,645). Unrestricted funds are reviewed by management and the Board on a monthly basis.

The Trustees are responsible for authorising the application of the charity’s reserves. At all times they will have regard to restrictions placed on the application of these reserves and are responsible for ensuring that they are applied in accordance with the stated restrictions.

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Cash

Our cash balances reduced in the year by £623,677. This was driven by the deficit in the year of 773,485 and an increase in debtors of £583,834 but was offset by an increase in creditors of £628,317. The increase in debtors and creditors is largely due to the increase in funding from the Urban Tree Challenge Fund, for which the claim is submitted at the end of the financial year.

The low level of reserves has therefore placed pressure on our cashflow. To address this for 2025-26, we have:

We’re also exploring additional financing options to provide further security.

So far in 2025-26, our efforts have provided positive results, with significant amounts of funding received up front meaning that cash balances have been higher than anticipated at the start of the year.

Going Concern

The trustees have carefully considered the risks associated with the lower level of unrestricted reserves held at the end of 2024-25. In response, they have taken a more extensive and proactive approach than in previous years to assess and ensure the ongoing viability of the charity. Key steps taken include:

The plan for 2025–2026 is conservative and achievable, forecasting a modest surplus of £44,000. This is part of a longer-term recovery plan, with three-year forecasts projecting annual surpluses of around £200,000. This strategy will gradually rebuild unrestricted reserves to policy minimum levels by March 2028, restoring financial flexibility and strengthening the organisation’s ability to manage risk and seize future opportunities. Whilst higher surpluses may be achievable, and other scenarios are being prepared to this effect, we are working conservatively to ensure the charity does not overstretch its cost base.

The swift and prudent actions taken after the 2024-25 losses, conservative planning for 2025-26 and beyond, and careful cashflow management as well as the successes in fundraising so far in 2025-26 all provide the trustees with a high level of confidence in the organisation’s stability. Accordingly, the trustees consider that the Charity has adequate resources to continue in operational existence for the foreseeable future and confirm that the organisation remains a going concern.

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Investment Policy

Trees for Cities may invest funds at the discretion of the board (as per the Memorandum and Articles of Association). The trustees review the charity’s cash levels and investment opportunities on an ongoing basis.

The investment objective for short-term investments (funds accessible within 12 months) is to allow funds to be readily available, and with the minimum risk.

In line with this objective, cash is held in bank accounts that allow instant access. During the year, funds were held with the Co-operative Bank and CAF Bank. Cash was also held with Triodos Bank and on the Flagstone platform (where money was invested in nine different banks during the year) across a mixture of fixed term (maximum 12 months) and notice period accounts.

Should the trustees consider that cash reserves sufficiently exceed the level required to finance the charity’s forthcoming activities in a sustainable way, funds may be invested on a longer-term basis to generate further cash for the charity.

The investment objective for long-term investments (funds not accessible within 12 months) will be to generate a return in excess of inflation over the long-term, and to minimise risk by spreading investments across more than one asset class.

The trustees have set ethical criteria for long-term investments, primarily that Trees for Cities will not invest in companies whose actions run counter to the charity’s own charitable objectives.

We hold a discretionary investment portfolio of 100% government backed bonds with Quilter Cheviot Limited Jersey, with a value of £158,576 at 31 March 2025. This investment is very low risk, and the cash can be withdrawn with a few days’ notice, however we plan to draw these down as they mature. During the year, we drew down on our investment holdings with two medium risk funds - the first with Sarasin Investment Funds Limited, resulting in a net gain in the year of £6,331, and the second with M&G Investments resulting in a net gain in the year of £7,686. Alongside the gains in value in our Quilter Cheviot bonds, our investments gained £19,898 in value in the year (see Note 14).

Principal Risks and Uncertainties

The trustees and senior management team identify and agree the key risks facing the charity at the start of each financial year and enter them onto a risk register under categories of external, financial, operational and governance, each with low, medium, medium/high and high levels of risk. Each risk is assessed according to its likelihood and potential impact, and appropriate mitigating actions and implementation procedures are agreed. We discuss risk management annually in detail with our Finance & Risk sub-committee, and we review and share the risk register quarterly with trustees at each board meeting to discuss the effectiveness of our risk management and identify and new key risks. The principal net risks under each category are currently as follows:

Category Description of
Gross Risk		 Mitigating Actions Net Risk
Level
Financial Unrestricted
reserves below
minimum level in
our policy, which
puts strain on our
cash position.		 •
Heightened focus on financial risk management with
a low-risk approach to planning e.g. through
conservative weightings on funding outcomes,
monthly cashflow management, negotiation of
payment terms.
•
3-year planning to rebuild reserves.
•
External advice sought from charity finance experts.
•
Income prioritisation across the charity.		 High

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•
Finance Policy and Procedures manual being
developed and implemented across teams,
particularly fundraising, to ensure full cost recovery.
Operational High staff turnover,
increasing risk of
losing key staff and
strain on
workforce.		 •
Employee Value Proposition in place to attract,
recruit, develop and retain talent.
•
Salary benchmarking to ensure competitiveness in
the sector.
•
Staff benefits package aligned to team including
employee healthcare package and learning &
development platform with free online training
modules.
•
Staff manual and HR policies and procedures to
support organisational team health including line
management support, staff Mental Health &
Wellbeing committee.
•
Documented systems and processes across projects
to ensure robust decision-making.
•
Annual team structure review in line with annual
business plans.		 High
External Climate changes
affect availability of
tree stock and tree
establishment		 •
Plan for uncertain seasonality including flexibility to
increase watering and maintenance checks during
hot periods.
•
Tree establishment checks and health assessments in
autumn.
•
Informed tree species selection and robust
establishment practices.		 Medium
/High
Governance Chair of Trustees
reaching end of
second term, which
risks destabilising
Board leadership		 •
Recruitment plan for new Chair of Trustees in
development.		 Medium

Fundraising

Trees for Cities aims to raise funds in a respectful way that is consistent with our values. The charity is registered with the Fundraising Regulator. In all our fundraising we work diligently to comply with the Code of Fundraising Practice and to uphold the standards it promotes. No complaints were received in the year.

Trees for Cities has a safeguarding policy which commits the charity to ensuring that all children and adults who use our services are not abused and that working practices minimise the risk of abuse. All Trees for Cities staff and volunteers have a duty to identify abuse and report it. All staff are given annual training on our safeguarding procedures by our designated safeguarding lead.

Trees for Cities rarely contracts out or outsources fundraising activities to third parties. Where a member of the public raises funds for the charity through a self-arranged event or where third parties undertake fundraising activities, Trees for Cities will ensure that any messaging and materials used are in line with charity standards.

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Structure, Governance and Management

The charity was constituted as a company limited by guarantee, established on 24 November 1993, and is governed by its Memorandum and Articles of Association.

In December 2024, Trees for Cities brought all operations for the Trees for Streets programme in house. Trees for Streets was established in 2020 as a programme jointly delivered with Start with Local. As part of this change, a member of staff from Start with Local transferred to the Trees for Cities and a fee was agreed with Start with Local for the Charity to obtain sole ownership of the intellectual property of the programme. As the programme becomes increasingly well established, we believed that efficiencies could be gained from moving the programme fully in house.

The board of trustees administers the charity. The trustees are directors for the purpose of company law. All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 9 to the accounts.

The board of trustees may use sub committees to consider some areas in more detail. The board remains the decision maker and considers all areas as recommended by the Charities Commission. Trees for Cities operates a finance and audit sub-committee, chaired by the Treasurer, which reviews and makes recommendations to the board of trustees in relation to annual budgets, salaries, cash, investments, reserves, accounting policies and controls.

The Chief Executive is appointed by the trustees to manage the day to day running of the charity and delegates as necessary to the senior management team. The board of trustees is responsible for governance and assists with strategy and policy.

The Chair of the board of trustees is appointed by the trustees.

The charity’s trustees are:

I Bardswell J Bramley J Capon (Chair) M Foster (appointed 1 August 2025) M Hayer (appointed 4 April 2024) A MacGillivray B Miller J Rose (appointed 1 December 2024) S Potter (appointed 1 August 2025) D Woodbine (Treasurer)

S Workman and S Gray served during the year and resigned on 11 December 2024 at the end of their terms.

Trustee Recruitment, Induction and Training

Trees for Cities undertakes a Board Skills Audit approximately every three years in line with the development of the strategic plan. The audit is used to determine if any new skills and experience are required at Board level to deliver the new plan. A Board skills audit in June 2024 led to subsequent recruitment of two new trustees with skills related to HR and urban forestry. Since then, we have recruited two further new trustees with skills in fundraising, marketing and individual giving to replace an outgoing trustee.

Should any further gaps in skills or knowledge be identified and a new trustee position is required, a recruitment process will be undertaken. Recruitment is open to all sections of the community, and candidates are interviewed by existing trustees and appointed on merit based on a majority decision.

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New trustees are made aware of their legal obligations, the content of the Memorandum and Articles of Association, the Charity’s history, culture and philosophical approach, the current year’s business and financial plan. New trustees also receive a copy of the most recent Annual Report and statutory accounts, and an induction pack including information published by the Charity Commission with the opportunity to discuss them through induction meetings.

Remuneration Policy for Key Management Personnel

Trees for Cities is an equal opportunities employer and applies objective criteria to assess merit. The Board sets the terms and conditions for staff on an annual basis. A salary benchmarking process is undertaken every year to assess each role in the external market, to ensure that the charity is paying all employees, including senior management, fairly and competitively for similar roles within the sector.

Data Protection – General Data Protection Regulations

The General Data Protection Regulations (GDPR) became law in May 2018. The regulations set out the responsibilities of all organisations in relation to the personal data that they collect and hold and are designed to enhance the rights of individuals in controlling their own data.

Trees for Cities places great importance on the security of supporter data and personal information. The charity is registered with the Information Commissioners Office and has introduced a programme that will enable demonstration of compliance with the spirit and intention of GDPR, with the required management structures in place to manage data risks and integrate governance of these risks into daily management.

For information on how the charity uses and protects personal data, please see our Privacy Policy: https://www.treesforcities.org/privacy-policy.

Information Security

The confidentiality, integrity and availability of information, in all its forms, are critical to the charity’s work. In 2018 the information security policy was updated to bring it in line with GDPR legislation.

Anti-Fraud, Anti-Bribery and Anti-Corruption Policy

Robust internal financial controls and financial management are essential to protect the charity against increasingly prevalent threats from external fraudulent activities and from any internal risk of funding misappropriation. Trees for Cities’ system of internal controls is based on an ongoing process designed to identify the principal risks, to evaluate the nature and extent of those risks, and to manage them effectively. The controls have been undergoing a full review, due to be completed in 2025.

The charity’s anti-fraud, bribery and corruption policy specifies the controls and procedures required to prevent and detect fraud and dishonesty, investigate any allegations that arise, and take appropriate action where necessary. It also stipulates procedures for due diligence and verifying the end use of charitable funds to minimise exposure to risk when passing charitable funds to external partners.

Sustainability

Trees for Cities is committed increasing its environmental sustainability. To help Trees for Cities achieve sustainability objectives, a comprehensive Environmental Management System is being developed to set operational standards across the organisation. We are establishing a Sustainability Committee that meets quarterly to review strategies, and further improve our operations to meet environmental targets, with the support of Sustainability Champions to drive company-wide improvement.

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To help create our sustainability targets and monitor progress, in 2023-24, we commissioned an independent Eco Audit, which highlighted that that we achieved zero Scope 2 emissions from our operational electricity use avoiding the emittance of 3 tons of CO2 annually, and achieved a 70% recycling rate. The report also highlighted areas of improvement, including energy efficiency improvements which are being made at one of our premises. We'll continue to review our progress and implement improvement measures as we further develop our near-term sustainability targets along with long term sustainability goals, as part of creating the as part of the 2025-2030 Organisational strategy.

Statement of Responsibilities of the Trustees

The trustees (who are also directors of Trees for Cities for the purposes of company law) are responsible for preparing the trustees’ annual 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 company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

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

In so far as the trustees are aware:

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

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 March 2025 was 8 (2024: 9). The trustees are members of the charity, but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

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Auditor

Sayer Vincent LLP continued as the charitable company's auditor during the year, as approved by the board of trustees.

The trustees’ annual report has been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

The trustees’ annual report has been approved by the trustees on date and signed on their behalf by:

D Woodbine Treasurer

Dated: 13 November 2025

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Opinion

We have audited the financial statements of Trees for Cities (the ‘charitable company’) for the year ended 31 March 2025 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 charitable 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.

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 Trees for Cities' ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue

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

Other Information

The other information comprises the information included in the trustees’ annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of 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 this gives

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rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other 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:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual 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 trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of 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 charitable 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 trustees either intend to liquidate the charitable 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

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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 are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:

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

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Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an 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 company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Fleur Holden (Senior statutory auditor)

21 November 2025

for and on behalf of Sayer Vincent LLP, Statutory Auditor

110 Golden Lane, LONDON, EC1Y 0TG

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Tr�s for Cities

Statement of financial activities (incorporating an income and expenditure a�ount) For the year ended 31 March 2025

----- Start of picture text -----
2025 2024
Unrestricted Restricted Total Unrestricted Restricted Total
Note £ £ £ £ £ £
Income from:
Donations 2 824,234 795,710 1,619,944 669,746 877,462 1,547,208
Charitable activities 3
Urban forests - London 440,997 443,861 884,858 308,480 398,160 706,640
Urban forests - Other UK cities 122,016 1,518,864 1,640,880 436,221 1,052,624 1,488,845
Trees for Streets 288,394 - 288,394 284,435 76,347 360,782
Trees for schools 431,768 464,264 896,032 822,618 266,205 1,088,823
Other trading activities 4 16,343 - 16,343 9,261 - 9,261
Investments 5 34,585 - 34,585 25,357 - 25,357
Total income 2,158,337 3,222,699 5,381,036 2,556,118 2,670,798 5,226,916
Expenditure on:
Raising funds 6a 516,583 182,151 698,734 442,421 58,423 500,844
Charitable activities
Urban forests - London 509,462 637,373 1,146,835 340,408 797,817 1,138,225
Urban forests - Other UK cities 367,281 1,728,296 2,095,577 630,116 1,337,446 1,967,562
Urban forests - International 41,286 - 41,286 29,664 - 29,664
Trees for Streets 608,449 - 608,449 364,352 112,084 476,436
Trees for Schools 948,774 634,764 1,583,538 991,104 675,890 1,666,994
Total expenditure 2,991,835 3,182,584 6,174,419 2,798,065 2,981,660 5,779,725
Net income / (expenditure) before net
gains / (losses) on investments (833,498) 40,115 (793,383) (241,947) (310,862) (552,809)
Net gain /(losses) on investments 19,898 - 19,898 16,261 - 16,261
Net movement in funds (being net
(expenditure) / income for the year) (813,600) 40,115 (773,485) (225,686) (310,862) (536,548)
Reconciliation of funds:
Total funds brought forward 1,125,342 176,000 1,301,342 1,351,028 486,862 1,837,890
Total funds carried forward 311,742 216,115 527,857 1,125,342 176,000 1,301,342
----- End of picture text -----

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 22a to the financial statements.

20

Tr�s for Cities

Company no. 02874642

Balance sh�t

As at 31 March 2025

----- Start of picture text -----
Restated
2025 2024
Note £ £ £ £
Fixed assets:
Tangible assets 13 33,837 27,645
Investments 14 161,935 388,723
195,772 416,368
Current assets:
Debtors 15 2,990,643 2,406,722
Short term deposits 31 506,874
Cash at bank and in hand 335,174 452,008
3,325,848 3,365,604
Liabilities:
Creditors: amounts falling due within one year 16 (2,993,763) (2,480,630)
Net current assets 332,085 884,974
Total net assets 527,857 1,301,342
The funds of the charity: 22a
Restricted income funds 216,115 176,000
Unrestricted income funds:
Designated funds 92,761 90,065
General funds 218,981 1,035,277
Total unrestricted funds 311,742 1,125,342
Total charity funds 527,857 1,301,342
----- End of picture text -----

Approved by the trustees on 13 November 2025 and signed on their behalf by

D Woodbine Treasurer

21

Tr�s for Cities

Statement of cash flows

For the year ended 31 March 2025

----- Start of picture text -----
Restated
2025 2024
£ £ £ £
Cash flows from operating activities
Net (expenditure)/income for the reporting period (773,485) (536,548)
(as per the statement of financial activities)
Depreciation charges 22,808 13,992
(Gains)/losses on investments (19,898) (16,261)
Dividends and interest from investments (34,585) (25,357)
Loss on the disposal of fixed assets
Increase in debtors (583,921) (539,894)
(Decrease)/increase in creditors 513,133 (269,427)
Net cash used in operating activities (875,948) (1,373,495)
Cash flows from investing activities:
Dividends and interest from investments 34,585 25,357
Proceeds from the sale of fixed assets - -
Purchase of fixed assets (29,000) (26,490)
Proceeds from sale of investments 246,686 192,000
Purchase of investments - (225,000)
Net cash provided by/(used in) investing activities 252,271 (34,133)
Change in cash and cash equivalents in the year (623,677) (1,407,628)
Cash and cash equivalents at the beginning of the year 958,882 2,366,510
Cash and cash equivalents at the end of the year 335,205 958,882
Analysis of cash and cash equivalents
Other At 31 March
At 1 April non-cash 2025
2024 Cash flows changes
£ £ £ £
Short term deposits 506,874 (506,843) - 31
Cash at bank and in hand 452,008 (116,834) - 335,174
-
Cash and cash equivalents 958,882 (623,677) 335,205
----- End of picture text -----

22

Tr�s for Cities Notes to the financial statements For the year ended 31 March 2025

1 Accounting policies

a) Statutory information

Trees for Cities is a charitable company limited by guarantee and is incorporated in England and Wales.

The registered office address and principal place of business is Prince Consort Lodge, Kennington Park Place, London, SE11 4AS.

b) Basis of preparation

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) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

c) Public benefit entity

The charity meets the definition of a public benefit entity under FRS 102.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

d) Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. Please refer to the trustees' annual report, specifically the financial review and the reserves policy where it sets out how the charity is operating within its reserves policy target levels of reserves.

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

When donors specify that incoming resources given to the charity must be used in future accounting periods, the income is deferred to those periods.

When donors impose conditions which have to be fulfilled before the charity becomes entitled to use such income, the income is deferred and not included in incoming resources until the pre-conditions for use have been met.

When donors specify that incoming resources are for particular restricted purposes, which do not amount to pre-conditions regarding entitlement, this income is included in incoming resources of restricted funds when receivable.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

23

Tr�s for Cities Notes to the financial statements For the year ended 31 March 2025

1 Accounting policies (continued)

f) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

g) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Costs of raising funds are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.

Expenditure on charitable activities comprises those costs incurred by the charity in the delivery of its activities. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support the activities of the charity.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

h) Grants payable

Grants payable are made to third parties in furtherance of the charity's objects. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the charity.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.

i) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

Raising Funds 18.80%
Urban forests - London 25.67%
Urban forests - Other UK cities 18.21%
Urban forests - International 1.16%
Trees for Streets 9.22%
Trees for schools 26.94%

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

j) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

24

Tr�s for Cities Notes to the financial statements For the year ended 31 March 2025

1 Accounting policies (continued)

k) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £1,000. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

plant and machinery 3 years fixtures, fittings and equipment 3-5 years motor vehicles 3 years

l) Listed investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the statement of financial activities. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.

m) Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid net of any trade discounts due.

n) Short term deposits

Short term deposits includes cash balances that are invested in accounts with a maturity date of between 3 and 12 months.

o) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

p) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

q) Financial instruments

The charity 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.

r) Pensions

The charity operates a defined contribution pension scheme. Contributions payable for the year are charged in the Statement of Financial Activities as they fall due.

s) Employee benefits

Termination benefits are recognised as an expense when the charity is demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognised as an expense if the charity has made an offer of voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably.

25

Tr�s for Cities

Notes to the financial statements

For the year ended 31 March 2025

2 Income from donations

Donations - corporate partners
Grants - other
Donations - individuals
Donations - trusts & foundations		 Unrestricted
£
283,382
73,912
154,440
312,500
824,234		 Restricted
£
30,000
11,500
649,419
104,791
795,710		 2025
Total
£
313,382
85,412
803,859
417,291
1,619,944		 Unrestricted
£
195,772
76,403
275,571
122,000
669,746		 Restricted
£
-
8,420
842,242
26,800
877,462		 2024
Total
£
195,772
84,823
1,117,813
148,800
1,547,208

3 Income from charitable activities

Corporate partners
Grants
Local government
Urban forests - London
Corporate partners
Grants
Local government
Urban forests - Other UK cities
Corporate partners
Grants
Local government
Trees for Streets
Corporate Partners
Grants
Schools
Local government
Trees for Schools
Total income from charitable
activities		 Unrestricted
£
165,929
22,833
252,235
440,997
122,016
-
-
122,016
29,750
-
258,644
288,394
190,500
-
54,464
186,804
431,768
1,283,175		 Restricted
£
50,751
217,658
175,452
443,861
34,606
1,484,258
-
1,518,864
-
-
-
6,803
393,177
-
64,284
464,264
2,426,989		 2025
Total
£
216,680
240,491
427,687
884,858
156,622
1,484,258
-
1,640,880
29,750
-
258,644
288,394
197,303
393,177
54,464
251,088
896,032
3,710,164		 Unrestricted
£
108,008
4,073
196,399
308,480
435,777
-
444
436,221
50,321
-
234,114
284,435
276,533
-
124,975
421,110
822,618
1,851,754		 Restricted
£
72,488
224,968
100,704
398,160
-
1,052,624
-
1,052,624
-
76,347
76,347
25,000
240,664
-
541
266,205
1,793,336		 2024
Total
£
180,496
229,041
297,103
706,640
435,777
1,052,624
444
1,488,845
50,321
76,347
234,114
360,782
301,533
240,664
124,975
421,651
1,088,823
3,645,090

Five (2024: Four) government grants were claimed for from the Forestry Commission for four Urban Tree Challenge Funds for the planting and maintenance of trees in the UK. These were allocated to our London and UK Urban Forests programmes, and totalled £1,338,857 (2024: £913,573).

26

Tr�s for Cities Notes to the financial statements For the year ended 31 March 2025

4 Income from other trading activities

Income from investments
Fixed interest securities
Bank interest
Sponsorship of projects
Rent recharges		 Unrestricted
£
11,103
5,240
16,343
Unrestricted
£
1,614
32,971
34,585		 £
-
-
-
£
-
-
-
Restricted
Restricted		 2025
Total
£
11,103
5,240
16,343
2025
Total
£
1,614
32,971
34,585		 Unrestricted
£
9,261
-
9,261
Unrestricted
£
3,215
22,142
25,357		 £
-
-
-
£
-
-
-
Restricted
Restricted		 2024
Total
£
9,261
-
9,261
2024
Total
£
3,215
22,142
25,357

5 Income from investments

27

Tr�s for Cities

Notes to the financial statements For the year ended 31 March 2025

6a Analysis of expenditure (current year)

Staff costs (Note 9)
Depreciation
Fundraising costs
Direct activity costs - grants
Direct activity costs - internal delivery of projects
Direct activity costs - external delivery of projects
Audit
Facilities
HR
Rent
Other costs
Support costs
Governance costs
Total expenditure 2025
Total expenditure 2024		 Raising
funds
£
497,744
-
99,736
-
-
-
-
-
-
-
481
597,961
83,050
17,723
698,734
500,844		 Urban forests -
London
£
679,632
7,748
-
85,085
230,475
6,297
-
-
-
-
-
1,009,237
113,398
24,200
1,146,835
1,138,225		 Urban forests -
other cities
Urban
forests -
international
Trees for
Streets
£
£
£
482,123
30,712
244,106
-
-
-
-
-
-
1,209,281
-
7,000
144,707
3,106
40,327
161,855
1,250
267,594
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,997,966
35,068
559,027
80,444
5,124
40,730
17,167
1,094
8,692
2,095,577
41,286
608,449
1,967,562
29,664
476,436
Charitable activities		 Trees for
Schools
£
713,256
7,748
-
-
190,431
527,697
-
-
-
-
-
1,439,132
119,009
25,397
1,583,538
1,666,994		 Governance
costs
£
70,674
-
-
-
-
-
18,500
-
-
-
5,099
94,273
-
(94,273)
-
-		 Support
costs
£
-
7,312
-
-
-
-
-
151,493
128,842
60,334
93,774
441,755
(441,755)
-
-
-		 2025
Total
£
2,718,247
22,808
99,736
1,301,366
609,046
964,693
18,500
151,493
128,842
60,334
99,354
6,174,419
-
-
6,174,419		 2024
Total
£
2,420,560
13,992
59,700
859,472
645,368
1,339,700
14,950
159,543
124,859
59,234
82,347
5,779,725
-
-
5,779,725

28

Tr�s for Cities

Notes to the financial statements For the year ended 31 March 2025

6b Analysis of expenditure (prior year)

Staff costs (Note 9)
Depreciation
Fundraising costs
Direct activity costs - grants
Direct activity costs - internal delivery of projects
Direct activity costs - external delivery of projects
Audit
Facilities
HR
Rent
Other costs
Support costs
Governance costs
Total expenditure 2024		 Raising
funds
£
365,881
-
59,700
-
-
-
-
-
-
-
771
426,352
64,138
10,354
500,844		 Urban forests -
London
£
648,078
6,644
-
26,100
278,943
46,513
-
-
-
-
-
1,006,278
113,607
18,340
1,138,225		 Urban forests -
other cities
Urban
forests -
international
£
£
497,589
25,676
-
-
-
-
790,296
-
108,344
-
470,026
(1,240)
-
-
-
-
-
-
-
-
-
-
1,866,255
24,436
87,226
4,501
14,081
727
1,967,562
29,664
Charitable activities		 Trees for
Streets
£
135,987
-
-
43,076
62,499
207,188
-
-
-
-
-
448,750
23,838
3,848
476,436		 Schools
£
704,184
6,645
-
-
195,582
617,213
-
-
-
-
-
1,523,624
123,442
19,928
1,666,994		 Governance
costs
£
43,165
-
-
-
-
-
14,950
-
-
-
9,163
67,278
-
(67,278)
-		 Support
costs
£
-
703
-
-
-
-
-
159,543
124,859
59,234
72,413
416,752
(416,752)
-
-		 2024
Total
£
2,420,560
13,992
59,700
859,472
645,368
1,339,700
14,950
159,543
124,859
59,234
82,347
5,779,725
-
-
5,779,725

29

Draft: 2 September 2025 16:42

Tr�s for Cities Notes to the financial statements For the year ended 31 March 2025

7 Grant making

----- Start of picture text -----
|||| |---|---|---| |2025|2024| |Cost|£|£| |Urban Tree Challenge Fund - Round 1|24,187|11,636| |Urban Tree Challenge Fund - Round 3|175,713|179,402| |Urban Tree Challenge Fund - Round 4|201,609|192,575| |Urban Tree Challenge Fund - Round 5|528,032|338,494| |-| |Urban Tree Challenge Fund - Round 6|217,905| |Mayor's Tree programme|7,000|43,076| |Trees for Climate Action|61,835|68,189| |GLA - Urban Tree Challenge Fund match|85,085|26,100| |At the end of the year|1,301,366|859,472|

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

The Urban Tree Challenge Fund is a multi year grant from the Forestry Commission and round one funding was passed to 3 partners (2024: 5), round three to 6 partners (2024: 8), round four to 9 partners (2024: 10) and round five to 10 partners (2024: 7) for planting and/or maintenance. Round six was passed to 6 partners for planting in 2024-25 (2024: nil). The Greater London Authority also granted Urban Trees Challenge Fund money to pass to 0 London partners (2024: 2). The Mayor's Tree programme is a Greater London Authority multi year grant and funds were passed to 2 councils (2024: 4) in order to boost street tree planting activity. Trees for Climate Action is a multi year grant from the National Lottery Community Fund, funding engagement only projects. Funding was passed to 1 partners in 2024-25 (2024: 1). The grants are part of our UK and Trees for Streets activities and support costs are allocated in note 6a and 6b. There was some overlap of partners between grants, with a total of 27 different council partners (2024: 22), and 2 other institutional partners being passed grants (2024: 4).

The grants were split as follows between council partners and other institutional partners:

----- Start of picture text -----
|||||| |---|---|---|---|---| |Number of| |Number of|other|Paid to other| |council|institutional|Paid to council|institutional| |partners|partners|partners|partners| |No.|No.|£|£| |Urban Tree Challenge Fund - Round 1|3|-|24,187|-| |Urban Tree Challenge Fund - Round 3|6|2|154,365|21,348| |Urban Tree Challenge Fund - Round 4|9|-|201,609|-| |Urban Tree Challenge Fund - Round 5|10|-|528,032|-| |Urban Tree Challenge Fund - Round 6|6|213,270|4,635| |Mayor's Tree programme|1|-|7,000|-| |Trees for Climate Action|-|1|-|61,835| |GLA - Urban Tree Challenge Fund match|2|-|85,085|-| |Total|37|3|1,213,548|87,818|

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

This is stated after charging / (crediting):

----- Start of picture text -----
|||| |---|---|---| |2025|2024| |£|£| |Depreciation|22,808|13,992| |Operating lease rentals payable:| |Property|32,314|41,775| |Other|-|-| |Auditor's remuneration (excluding VAT):| |Audit|18,500|14,950| |Other services|2,449|1,697|

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

8 Net expenditure/(income) for the year

30

Draft: 2 September 2025 16:42

Tr�s for Cities Notes to the financial statements For the year ended 31 March 2025

9 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Social security costs
Employer’s contribution to defined contribution pension schemes
Salaries and wages		 2025
£
2,377,493
217,542
123,212
2,718,247		 2024
£
2,102,917
207,534
110,109
2,420,560

Redundancy payments made or committed during the year amounted to £15,059 (2024: £0).

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

£60,000 - £69,999 2025
2024
No.
No.
3
1
£80,000 - £89,999 1
1

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £495,824 (2024: £431,554).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2024: £nil). No charity trustee received payment for professional or other services supplied to the charity (2024: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £381 (2024: £1,012) incurred by members relating to attendance at meetings of the trustees, and costs relating to board meetings and trustee gifts, totalling £2,269 (2024: £6,418)

10 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 60 (2024: 62).

Staff are split across the activities of the charity as follows (full time equivalent basis):

Urban forests - UK Cities
Urban forests - International
Trees for Streets
Trees for Schools
Fundraising and public relations
Urban forests - London		 2025
No.
9.6
15.7
10.0
0.4
4.3
15.9
55.9		 2024
No.
7.9
15.8
11.4
0.5
3.3
16.9
55.8

31

Draft: 2 September 2025 16:42

Tr�s for Cities Notes to the financial statements For the year ended 31 March 2025

11 Related party transactions

There are no related party transactions to disclose for this financial year (2024: none).

12 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

13 Tangible fixed assets

At the end of the year
At the start of the year
Charge for the year
Eliminated on disposal
At the end of the year
Net book value
Disposals in year
At the end of the year
Depreciation
At the start of the year
Cost
At the start of the year
Additions in year		 Motor
vehicles
£
81,891
-
-
81,891
54,246
15,497
-
69,743
12,148
27,645		 Plant &
machinery
£
18,022
-
(14,721)
3,301
18,022
-
(14,721)
3,301
-
-
Fixtures, fittings
& equipment
£
6,348
29,000
-
35,348
6,348
7,311
-
13,659
21,689
-
Total
2024
£
106,261
29,000
(14,721)
120,540
78,616
22,808
(14,721)
86,703
33,837
27,645

All of the above assets are used for charitable purposes.

14 Listed investments

UK fixed interest bonds
Investment funds
Cash
Fair value at the end of the year
Investments comprise:
Additions at cost
Disposal proceeds
Revaluation during the year
Cash held by investment broker pending reinvestment
Fair value at the start of the year		 2025
£
388,723
-
(246,686)
19,898
161,935
7,063
168,998
2025
£
158,095
3,840
7,063
168,998		 2024
£
339,462
225,000
(192,000)
16,261
388,723
5,940
394,663
2024
£
152,211
236,512
5,940
394,663

32

Draft: 2 September 2025 16:42

Tr�s for Cities Notes to the financial statements For the year ended 31 March 2025

15 Debtors

----- Start of picture text -----
|||| |---|---|---| |2025|2024| |£|£| |Trade debtors|2,302,068|2,086,187| |Prepayments and accrued income|688,575|320,535| |2,990,643|2,406,722| |Creditors: amounts falling due within one year| |Restated| |2025|2024| |£|£| |Trade creditors|171,028|178,751| |Taxation and social security|138,837|110,682| |Grant accruals|1,826,412|952,018| |Other accruals|526,647|926,151| |Deferred income (note 17)|217,454|281,783| |Provision for liabilities|88,995|18,275| |Other creditors|24,391|12,970| |2,993,763|2,480,630|

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

16 Creditors: amounts falling due within one year

17 Deferred income

Deferred income comprises funding for projects being delivered in 2025-26, including urban forest projects £30,483 (2024: £79,551), schools £132,500 (2024: £194,232), and other income £54,471 (2024: nil).

----- Start of picture text -----
|||| |---|---|---| |2025|2024| |£|£| |Balance at the beginning of the year|281,783|649,244| |Amount released to income in the year|(267,688)|(582,856)| |Amount deferred in the year|203,359|215,395| |Balance at the end of the year|217,454|281,783|

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

18 Cash held under agent agreement

Under the Trees for Streets programme council sponsorship holdings are received from sponsors. These will be passed to councils, less an administration fee once the trees have been planted. The cash is held under an agency agreement. In previous years the cash was instead held under creditors. The prior year cash and creditors figures have been restated in this set of accounts. There is no impact on other balances, income, expenditure, or the result for the year.

----- Start of picture text -----
||| |---|---| |Restated| |2025|2024| |£|£| |766,291|375,865|

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

33

Draft: 2 September 2025 16:42

Tr�s for Cities Notes to the financial statements For the year ended 31 March 2025

19 Contingent liability

The charity has recognised the replanting of trees due to unforeseen events, such as extreme weather or vandalism, as a contingent liability. It is taken into account when planning our unrestricted reserves levels. As the amount cannot be estimated reliably and as the charity may not be liable for the costs, depending on the original planting delivery method, we have not included it as a provision.

20 Pension scheme

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund as detailed below. Contributions of £17,656 (2024: £17,320) were outstanding at 31 March 2025.

Net assets at 31 March 2025
Analysis of net assets between funds (current year)
Tangible fixed assets
Investments
Net current assets
Creditors: amounts falling due within one year
Contributions payable by the charity for the year		 General
unrestricted
£
33,837
161,935
3,016,972
(2,993,763)
218,981
Designated
£
-
-
92,761
-
92,761		 2025
£
123,212
Restricted
£
-
-
216,115
-
216,115		 2024
£
110,109
Total funds
£
33,837
161,935
3,325,848
(2,993,763)
527,857

21a Analysis of net assets between funds (current year)

21b Analysis of net assets between funds (prior year)

Tangible fixed assets
Investments
Net current assets
Creditors: amounts falling due within one year
Net assets at 31 March 2024		 General
unrestricted
£
27,645
388,723
3,475,404
(2,856,495)
1,035,277
Designated
£
-
-
90,065
-
90,065		 Restricted
£
-
-
176,000
-
176,000		 Total funds
£
27,645
388,723
3,741,469
(2,856,495)
1,301,342

34

Draft: 2 September 2025 16:42

Tr�s for Cities

Notes to the financial statements For the year ended 31 March 2025

22a Movements in funds (current year)

Total restricted funds
Total designated funds
General funds
Total funds
Total unrestricted funds
Unrestricted funds:
Designated funds:
Pilot projects
Environmental offsetting
Restricted funds:
Urban forests - London
Urban forests - UK Cities
Trees for Streets
Trees for Schools
Donations and legacies		 At 1 April
2024
£
86,094
-
-
50,000
39,906
176,000
-
90,065
90,065
1,035,277
1,125,342
1,301,342
Income &
gains
£
443,861
1,518,864
-
464,264
795,710
3,222,699
-
-
-
2,158,337
2,158,337
5,381,036
Expenditure &
losses
£
(436,477)
(1,403,680)
-
(514,264)
(828,163)
(3,182,584)
-
(26,336)
(26,336)
(2,945,601)
(2,971,937)
(6,154,521)
Transfers
£
-
-
-
-
-
-
29,032
-
29,032
(29,032)
-
-		 At 31 March
2025
£
93,478
115,184
-
-
7,453
216,115
29,032
63,729
92,761
218,981
311,742
527,857

The narrative to explain the purpose of each fund is given at the foot of the note below.

22b Movements in funds (prior year)

Total restricted funds
Total designated funds
General funds
Total funds
Total unrestricted funds
Trees for Schools
Donations and legacies
Unrestricted funds:
Designated funds:
Environmental offsetting
Restricted funds:
Urban forests - London
Urban forests - UK Cities
Trees for Streets		 At 1 April
2023
£
194,787
4,343
10,000
206,204
71,528
486,862
128,511
128,511
1,222,517
1,351,028
1,837,890
Income &
gains
£
398,160
1,052,624
76,347
266,205
877,462
2,670,798
-
-
2,556,118
2,556,118
5,226,916
Expenditure &
losses
£
(506,853)
(1,056,967)
(86,347)
(422,409)
(909,084)
(2,981,660)
(38,446)
(38,446)
(2,743,358)
(2,781,804)
(5,763,464)
Transfers
£
-
-
-
-
-
-
-
-
-
-
-		 At 31 March
2024
£
86,094
-
-
50,000
39,906
176,000
90,065
90,065
1,035,277
1,125,342
1,301,342

35

Draft: 2 September 2025 16:42

Tr�s for Cities Notes to the financial statements For the year ended 31 March 2025

22 Movements in funds (continued)

Purposes of restricted funds

Restricted funds for Urban Forests programmes primarily relate to funding that has been received in advance for projects planted in 2024-25 but with maintenance activities planned in future years, projects that have been planned for 2025-26, or been delayed from 2024-25 and will be delivered in 2025-26. Within this balance is funding received in advance from the National Lottery Heritage Fund for the Tree Equity for Hartlepool project which started in March 2025.

Restricted funds for Trees for Schools relate to funding that has been received in advance for projects that have either been planned for 2025-26, or been delayed from 2024-25 and will be delivered in 2025-26.

Donations and legacy restricted funds comprise a donation in 2021-22 from UPS (£7,453). This is restricted to an electric vehicle purchase, which was purchased in 2023-24. The remaining balance is to cover depreciation costs in future years.

Purposes of designated funds

The designated fund relates to our offsetting work, setting aside money for future costs over five years relating to verification and monitoring for trees planted in 2021-22 and 2022-23.

We have also designated funds for UK projects planted in 2024-25 where we will be funding maintenance activities in future years.

23 Operating lease commitments payable as a lessee

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods

Less than one year
One to five years		 2025
2024
£
£
5,000
29,517
5,000
15,000
10,000
44,517
Land and buildings

24 Legal status of the charity

The charity is a company limited by guarantee and is under the control of the board of Trustees. The liability of each member in the event of winding up is limited to £1.

36