Charity registration number 1039386 (England and Wales) Company registration number 02751104 ADFERIAD RECOVERY LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 ADFERIAD RECOVERY LIMITED LEGALAND ADMINISTRATIVE INFORMATION Trustees Mr Clive Edmund Wolfendale (Vice Chair) Mr Howard Jones Trfio Chair} Mr Simon Paul Green (Honorary Treasurer) Dr Dytrig Morgan Ap Dafydd The Right Rev. John David Edward Davies Prof. John Hunt Mrs Samina Khan Rev Susan Northcott (Chair} Prof. Richard Owen Mrs Karen Jayne Ozzati Mr Dean Pulling Mr Robert Cledwyn Williams Ms R Gibson (Appointed 19 June 2024) (Appointed 18 September 2024) (Appointed 4 December 2024) (Appointed 18 Sepl&mber 2D24> {Appointed 4 December 2024) (Appointed 18 Sepl8rnber 2024) Dr S P Butterworth Mrs A J Hourihane Mrw Thomas Mrs S B Warrington Secretary Mrs M Williams Charity number {England and Wales) 1039386 Company number 02751104 Prfncipal address 36 Princes Drive Colvryn Bay Conwy LL29 8LA Registered offlce 36 Prin￿$ Drive Colwyn Bay Conwy LL29 8L Audltor Champion A¢¢ountants LLP 2nd Floor Refuge House 3&37 Watergate Row Chester CHI 2LE ADFERIAD RECOVERY LIMITED CONTENTS Page Trustees. r8POrt Statement of trustees, responsibilities 20 Independent auditorfs report 21-23 Statement of financial activities 24-25 Balan¢e sheet 26 Statement of cash flows 27 Notes to the financial statements 28-46 ADFERIAD RECOVERY LIMITED TRUSTEES. REPORT (INCLUDING DIRECTOR'S REPORT) FOR THE YEAR ENDED 31 MARCH 2025 The trustees present their annual report and financial statements for the year ended 31 March 2025. The finanrial ststements have been prepared in accordanc8 wilh the accounting polices set out in ￿te 1 to the financial statement's and wmply with the charity's goveming document, the Companies Act 2006 and "Accounting and Reporting by charities.. Statement of Recommended Practi￿ applicable to charities preparing accounts in accordanc8 with the Financial R8porting Stsndard applicable in the UK and R8public of Ireland (FRS 102)" {effective 1 January 2019). Objectives and activities ADFERIAD RECOVERY aims to make positive changes in the lives of people affected by drugs, alcohol. and other life Ghallenges. through a rar¥Je of services and support delivered by skilled and experranced staff, in th8 belief that people can and do chang8. The following objeds a￿ listed within the Charitys goveming document: To relieve people in need and their families. dependants andlor carers, wher8 such need is du8 to disadvantages including.. 1. addiction and other dependencies. including al(>)hol and drug misuse and gambling,, 2. mental and physical ill health, induding serious mental illness, poor psythological and emotional well- being, leaming disabilities, and Ihe effects of high-pressure work environments (including in particular the milttary and emergency services). 4. hawng been offenders andlor being at risk of offending" social exclusion", 6. povety. 7. having complex andlor Cowoccurriru needs across one or more of the preceding categories: We achieve this through the following aims and objectives: a> Safety will be at the heart of all we do. We will do our utmost to ensure the security, welE-being and comfort of our di8nts. We will tske all reasonable steps to protect and safeguard all who work for and with Adferiad Recovery. b) We will assist each other in reaching personal goals. in realising creative potential and in striving for exc8llence. We will aspire for everyone in Adferiad Recovery to have a positive regard for their work and colleagues. ¢) We will preserve the core values and mission of Adferiad Recovery, aKYays subordinating personal and commercial advantage to our chartiable goals. We will be ￿liable and trus￿OrthY in all our dealings. d) We will seek to meet and surpass the expectations of commissioners and clients. We will develop and maintain systems and processes that do nol fail. We will address short-wmings quickly and with good grace. e) We will incorporate the ne8ds and views of service users in the planning and delivery of all our provision. We will value and support those who volunteer to assist us. We will strive to understand and me8t th8 needs of different communities who seek our services. We will operate Ihrough the medium of both Welsh and English. fj W8 will maximise the use of our assets and minimise the cost of our overh8ads. We will actively seek partr)ership and collaboration in the interests of seNice improvement. We will assess and monitor the environmental cons8quences of our work, reducing Ihe impact wherever possible. Trustees developed these new Objects which have been approved by the Charity Commission to better reflect the needs of our beneficiaries and the ambition. mission, and future of Adferiad Recovery. ADFERIAD RECOVERY LIMITED TRUSTEES, REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 S5gnlficant activlties Adferiad Recovery's activilies continue to focus on enhancing the quality of existing service provision whilst seeking to develop both geographically and by offering new Servi￿ models. Our ServI￿S are diverse, and we operate in every local authority area in Wales whilst providing services for people from across ihe UK and b8yond in our residential services. Our hosptial and residential schemes delNer in-palient detoxification, and rehabilitatson. Our community ServI￿S include housing ralated support. therapeukn'c int8rventions. couns811ing. support. advice. family and carer services and training. We operate in the publicly managed prisons in Wales, provide national financial advice through the Mental Health and Money Advice Servits delivered within our role as Mental Health UK partners in Wales. We support the voice of our Members and ben8ficiaries in consultations, debates, and policy matt8rs, and campaign for a Rights Affimiing Approach for all. The Charity has extensive relationships with various partners and stakeholders in the pursuance of its charitable goals and for the benefit of its Client group. Adferiad Recovery aclively and collaboptively works with the Welsh Government, Local Heamh Boards, Local Authorities, Community Drug and Alcohol Services. Ar8a Planning Boards, Department of Work and Pensions primes, young person's Commissioners, offender managernent providers. housing associations, universities. colleges and various independent charities and voluntary councils including other agencies providing services for veterans. Public benefrt To further its obj8Cts. the Charity will: Provide treatment, care. advice, advoca¢y, support. infomiation. counselling, and services of the highest stsndard to those experiencing mental health problems. Substan￿ misuse problems, and those with c occurring and complex needs, or illness or disability of any kind, and their families and carers. Challenge discrimination through education and training. Strive to redu￿ or prevent hamis and the causes of harms to our beneficiaries to include the provision of inteNentions and other treatment Campaign nath'onally and lO￿llY for high qualty care, including both acute and long-stay services. The Charity provides a wide range of ServI￿S through a number of local projects and groups, support8d by members and volunteers together with staff employed in operational and functional departments at local and national level. Adferiad Recovery s charitable activities are all undertaken to fvrther its charitable purposes for the public benefit. The guidance contained in the Charity Commission's general guidance on public benefit has been referred to when reviewing Adferiad Recovery's aims and objectives and in planning future activities. In particular. the TNstees consider how planned activities will contribute to the aims and objectives they have set. Specific activities are detailed within Ihe following 'A¢hievements and Perfomian¢e' section, which are offered free of charg8 al the point of delivery. ADFERIAD RECOVERY LIMITED TRUSTEES. REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Achievements and perforniance Charitable Activiti8s During the fourth year of operation as the merged Charity to 31st March 2025, Adferiad Recovery supported more than 35,000 clients in core services including substance use. mentsl health. veterans. support8d housing and homelessness, recovery and addiction. gambling, volunteering. criminal justice. domiciliary care, training and 8mploym8nt programmes. Ovar th& course of the year, Adferiad Recovery delivered over 150 contracts for commissioners in government, health, local authorities and elsewhere. and provided a wide and diverse range of interventions for individuals in need. In addilion. we were SUC￿$S[u1 in developing a further 28 new services or expansion projects. Se￿}Ces were delivered throughout Wales as well as in Lancashire. by Adferiad Recovery and ils subsidiaries. Through Cylte Cymru, Adferiad lead Ihe delivery of the Welsh Govemment's 'Out of Work, Service in five of the seven W61sh health board areas this indudes: Lot 1- North Wales Lot 3 - Dyfed Lot 4 - Swansea Bay LOT 6 - Powys Lot 7- Cardiff and the Vale of Glamorgan We are pleased to ￿port that this contract was extended from March 31. 2025 until August 31. 2026. Adferiad measures the success of its activities ihrough contract monitoring and management arrangements to ensure achievemenl and compliance which includes setvice feedback from service users and carers receiving Adferiad services. Adferiad's intemal Quality Standards audits are conducted annualty and are self-evaluated across all services. External validation of these standards is demonstrated through the achievement and ongoing maintenance of ISO 9001.2015 (Quality Managem8nt Syst8m) and ISO 14001.2015 (Environmental Management System) certifications. These accreditations were exiemally audited and successfully revalidated in March 2025. In addition, Adferiad holds Centre recognition from Agored Cymru. Adferiad is also subject to inspection by the Care Inspectorate for Wales for registered domiciliary care s9rvi￿S and Parkland Pla￿ as a residential unit. Healthcare Inspectorate Wales which routinely audits and inspects the service at Hafan Wen in Wrexham. and Ihe Care Qualty Commission for our seprfice in Lancashire. Inspection reports are available on their webstles but some feedback from recent reports is included below. CIW Inspections were completed on two of the Adferiad Registered Services in 2024125. 1. Adferiad North Wales Domiciliary SupFM)rt Services was inspected on the 10th June 2024 ther8 were no non-compliance or improvements found. The inspector said, °Management is passionate about the servi they provide and ensure people receive consistent, and timely care of a high standard". 2. Aéferiad Pamand Place was Completed 29th July 2024. with no non-compliance or improvements identified. Comments re￿iVed include, 'The service off8r5 a relaxed atmospher8, Within luxurious surroundings. This promotes well-being and positivity. which is pivotal to people's progress and recoverf. ADFERIAD RECOVERY LIMITED TRUSTEES. REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Adferiad Recovery continues to be a18ad8r in thè provision of support for p8op18 8xperiencing Gabling hamis. The complex neeés residentlal pathway for Gambling harnis is now a stsnd-alone offer and has been extended until March 2026, talks are ongoing Public Health Wales around fvture funding, this is due to the announcement of the Statutory levy being collected from operators to fund Research, Education and Treatmenl. Th8 current consensus is that treatment will be extended for a ftjrther 2 years under the adopt, adapt, transfomi model used by NHS. Adferiad are the secretariat for the Cross-Party Group on Gambling Hamis in the Senedd, and we have an invitation to th8 All-Party group on Gambling in Westminst8r. Th8 Women's Awareness project is in its second year with drop in's available in Cown Bay and Bangor, there have been a series of videos launched to hdp promote the service. Further funding to continue th8 women's awareness project are currently being investigated wilh potential funding from GREO. As part of the National Gambling Support Ne￿Ork we have spoken about are gambling services at conferen￿$ in London. Hadow and Southend. Adferiad were represented at the Ethical Gambling Forum in Gibraltar, and we have put a proposal together to speak at th8 2026 confarence. 2024 Campaign - 'LeVs Got Physlcal - Whole Health, Whole Loves, Whole Plcture, Ravisiting Lat s Get Physical- Ten Years On In 2014, Adferiad launched the first "Let's Get Physical" campaign a bcld. trailblazing effort to tsckle the stark health inequalities facing people with Serious mental illness. The campaign made history by putting physical health front and centre in the mental health conversalion. It reached every county in Wales and left a lasting impact, helping shape care plans that took a more holistic view of people's needs. A decade18ter, in the summer of 2024. we reignited the campaign under the banner "Whole Health, Whole Lives, Whole Picture.. with a renewed mission to improve physical health outcomes for thos8 facing both mental health and substance use challenges. This time, the campaign went further-building on the original ambition and ￿SpOnding to alarming new data showing people with serious mental illness continue to live 15-20 years less than the general population, often due to preventabl8 physical conditions. We knew that the gap wasn't just persisting-it was growing-and that we needed to act. The Campaign was launched in Cannarthen by Mark Drakeford MS. and Elun8d Morgan MS. Throughout 2024, we took the campaign on the road again, holding 9 large-scale oJnmunity events across Wales, offering over 350 fr88 health checks, and reaching more than 1.000 people, including 10 elected representatives. Attendees received checks for blood pressure, glucose. BMI. and more, with results recordad in personal h8alth booklels to take to their GP. From interactive cooking demos to invigorating fitness activities, we made physical health engaging, practical, and empowering. The Gampaign uncovered powerful insights: 32010 of people had high blood pressure - nearly double the 2014 r￿ure. Attandees with mental health or substsnce use issues had significantly higher BMIS than those without. Prostate screening uptske among men remained low. with nearfy 40°h of eligible men never having had a check. While 98°/o were registered with a GP, nearly a quarter hadn't seen one in over a year. ADFERIAD RECOVERY LIMITED TRUSTEES. REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Despits these challenges. the impact was en￿Uraglng. 94Yo said lh8 campaign encouraged Ihern lo be more adive. 89% improved their dieL 84% felt better informed on staying physically well. The message was dear. health inequalities remain a major concem, but largeted. person-centred. community- based interventions like °Let's Get Physicaf can and do make a difference. The ¢ampaign ended with a strong call to action: urging Heatth Boards and Local Authorities to emb8d physical health care into all services for people with mental illness or substance use challenges, to provide regular checks. monitor side effects of medication, and better support carers. We also demonstrated that key health checks can be successfully delivered outside of clinical settings, offering a model that others across Wales can adopt. The findings and report was officially launched in the Senedd by the Minister for Mentsl Health & Wellbeing. Sarah Murphy on Worfd Mental Heamh Day 2024. Publicatlons, Web Resources, Medla. and Public Affairs Adferiad Recovery's existing websites continued to be regularly updated with news and infomiation" Following a comprehensive revyew by Mental HeaFth UK {MHUK). it was detèmined that usag8 and satisfaction levels of ihe Clic online peer support platforrn had significantly declined, largely due to reduced operating hours and evolving user needs in the post-pandemic context. As the platfomi was increasingly reliant on MHUK'S unrestricted funds. and in light of sh¢fting priorilies and financial pressures, MHUK'S Board of Trustees made the difficult decision to wind down Clic by the end of March 2025. Adferiad Recoverfs social media presence wntinued to grow significantly during 2024125. serving as a key platfomi for highlighting the latest news. events, and advocacy work. Across all channels. our total social media reach exce8ded 609,000. ref]e¢ting the impact of our expanded and mor8 strategic approach to digital engagemenL Our Fa￿book reach more than doubled, with the topperforming post-a ketamine factsheet-seen 68.5K times, and the Lorraine segment post reaching 30.7K views. The BBC News Artide r8ach was more than 1.8 million and Instsgram saw a 636°/0 increas8 in reach in Q4. with Only HumanThrelated content ac¢ounting for 56% of all engagement that quarter. Our website recnrded 87,6￿ visits across the year. including a 2310/0 spike in traffic on the day of campaign laun¢h. Our Facebook reach more than doubled, surpassing 370.000 views, while Twitterlx visits decreased. New platfonns induding Instsgram, TikTok. and Linkedln contributad over 242,000 impressions, supporting a wider and MO￿ diverse audience. We now have a combined So￿al media folloviing of over 29,900, and our website attracted over 196,300 visits. This digital grovrth supported key campaigns throUghC￿l th8 year, including Lets Get Physical. Only Human. R&covery Month. Ketamine Awareness. Carers Week, and Time to Talk Day. using lived experience stories. staff intervievts. and case studies to boost visibility. As part of our strat89iC review, we paused proactive activity on X {formerly Twitter) in response to redU￿d engagement. Adferiad Recovery's public affairs, press. and social media work during 2024125 has been far-reaching, strategically aligned. and more impactful than ever. Throughout the year, our campaigns, advocacy efforts, and lived experience StO￿&111ng secured wide coverage across national 2nd local media, as well as significant digital engagement. Media highlights induded appearances on BBC Wales Today, ITV Wales News, S4C's Newyddion 9, BBC Radio Wal8s, BBC Radio Cymru, and coverage in Walesonline. Westem Mail, and other press outlets. A k8y mi18Ston8 was the launch of our 'Only Human. antTrvstigma campaign, delivered in partnership with the family of the late celebrity The Vivienne and a London PR agency, which generated national and global media coverage across all major UK ne￿OrkS, including BBC N8wsnight and ITV'S Lorraine. We were also featured in media and press in the US and Australia. This campaign sparked a surge in digital engagement. particularly on Instagram. Facebook. and our websitè. Adf8riad's proactive and responsive approach saw us support numerous nalional awareness initiatives including Time to Talk Day, Mental Health Awareness Weak, Eating Disorders Awaraness W88k, and Debt Awareness Week. Media interest has grown significantly. with multiple requests from This Moming. Good Moming Britan, The Guardian, Attitude Magazine, and intemational mentions in outlets such as US W88kly. The Huffington Post, CBC, and Australian media. The BBC News coverage alone reached 1.8 million viewers. ADFERIAD RECOVERY LIMITED TRUSTEES. REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Our much-appreciated and well-attended Physical Wellbeing Days in Wrexham and Swansea once again brought logether beneficiaries, staff: and partners for fun. friendly. and heaItr￿f0CUS@d activities in 2024. These full-day events are designed to promote the benefits of physical wellbeing, exer¢lse. social contsct. and healthy eating - and are always highly contested and enjoyed by all. The North Wales Physical Wellbeing Day on 12th June saw more than 200 people join us in Wrexham for a Itvely programme of activtties. Attendaes enjoyed fr8& physical health checks, cooking demonstrations, and infomiation from partner agencies promoting their services. The day created a vibrant community atmosphere, showcaslng the value of staying active and making healthy choices. Our South Wales Physical Wellbeing Day in Swansea on 12th September welcomed over 150 participants. including special guests from Swansea City Community Trust, Lee Trundle, and Andr8w Jenkins. Activities ranged from our popular sporting challenges to informative dietic4an talks. We were delighted to work alongside our campaign partners- Diabetes UK, Thrombosis UK, St Giles. Alcohol Change. Carers Wales, Royal College of GPS, Bipolar UK. and RCS- who brought their expertise and enthusiasm to help make the day such a succèss. This year saw our ILM cohorts develop their skills through a series of projects which reviewed our organisational systems and processes. These groups demonstrated the value of engagement across the organisation in seeking future lead8rs and we will continue to develop projects with these cohorts into 2025126 Although not every Servi￿ is detailed, a revi8w of the most significant achievements and performance is surnmarised below. Employment Programmes Cyfie Cymru Adferiad continue to lead the delivery of the large-sca18 Welsh Govemment ￿nded 'Out of Work SeNice' across all five lot areas throughout Wales and directly delivers the Cyne Cymru progrdmme in North Wales, with Kaleidoscope in Powys, with Barod and Ka18idoscope in Cardiff and the Vale of Glamorgan, and with Barod in Swansea Bay and Dyfed. It ￿MaInS the largest service ever delivered by Adferiad - in terms of both value and geographical spread. The Welsh Government's Out of Work Service funds a programme which builds on our considerable success in the deliv8ry of effactive peer mentoring inteNentions. Through mentoring. training, employment support and volunteering, Cyfie Cymru aims to help peop18 With experienc8 of substance misuse and mentsl health difficulties get into or closer to work. From the commencement of the project in October 2022 to the 31 st March 2025, Cyne Cymru has attracted more than 7,000 registrations across the five lot areas. Over 125,000 hours of support delivered, more than 8,500 accredited and non-accredited qualifications have been awarded since the programme began and 500 people have been supported into employment, wth 1.400 gaining work or volunteering experience and 2.664 people received support for c04)ccurring needs. Housing Support Grant During 2024 - 25 Adferiad have provided 35 projects funded by Housing Support Grant {HSG) contracts. The contracts are across 12 Local Aulhorities: Wrexham. Flintshire, Denbighshire, Conwy, Gwynedd. Ceredigion. Pembrokeshire, Carmarthenshire. Merthyr Tydfil, Bridgend, Vale of Glamorgan and Neath Port Talbot. We also provide Support8d Accommodation projects such as Wrexham Support8d Accommodation which is delivered across four houses and one duster flat. supporting up to 20 occupants. Adferiad successfully tendered for two new projects: . 1. Flintshire Housing 1st which commenced on th8 1st January 2025 2. Denbighshire Collaborative in partnership with Slori with Adferiad as the Lead. This new service will commence on th8 Isl May 2025. ADFERIAD RECOVERY LIMITED TRUSTEES. REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Two longstanding HSG SeNi￿S contracts in Denbighshire ended in 2024 - 25 as the commissioners took services in house. Violence Agalnst Women Domestic Abuse and Sexual Violence (VAWDASV) Adferiad Recovery were successful during 2024125 in gaining capital funding from the Offic8 of the Police and Crima Commissioner and the Welsh Government to purchase and renovate a tsvopbedroom property for the support of an individual and family who hav8 been affected by VAWDASV. This is the fourth y8ar we have recerwed such funding. Young Persons. Services Adferiad delivers a wmprehensive range of seD/ices fv young individuals facing challenges related to mental health, substance use, and criminal justice across Wales. Our Young Persons, Substance Usa servi￿S have supported 131 young people in Powys. and our SWITCH serwce in Nealh Port Talbot 5UPPOrted 172 clients and received 120 new referrals for young peoplè who are experiencing or are at risk of experiencing substanc& use issues. Additionally. our Eat1y Intervention in Psychosis services provide crucial support to young people and Iheir siblings during what can be a fiightening time for the entire family. In 2024125, the team supported 130 young people through this service. Our CYP 24￿ supported accommodation in Merthyr Tydfil consists of fiv8 self-contained flats, providing support to young p80ple who are care leavers and those needing lower-lev81 support. This year, the team has successfully supported 10 young people in their joumey towards independent living. Through our partnership with M8ntal Health UK. we have delivered 3IJO engagement sessions through our Bloom and Your Resilience programme to 1,377 children and young peop18 in various settings. including schools, colleg8S. CAMHS, sporting excellence pathways and community groups. Th8rap8utic Senrices 202412025 saw extensions wilh our work with Rhyl Cty Strategy on the In Work Support Framework WI￿ra we were successfully added to their framework for another year. Also. our work with BCUHB delivering counselling and adding CBT sessions to the offer for those on CAMHS waiting lists was extended, this has been incre(fibly Su￿sSfUl for BCUHB and Adferiad, reducing waiting times for yourKJ people and achieving posilive outcomes. Indications are that BCUHB wll divert this fvnding lo reduce wait times for ND assessments upon completion of our contract. Inpatiènt and Residenlial SeNlces Hafan Wen - our purpose-built 25 bed detoxifi¢ation and treatment centre is located on the campus of the Wrexham Maelor Hospital and provides services for patients from north Wales through a lon9-term agreem8nt with Betsi Cadwaladr Universty Health Board. BCU currenuy block book 10 of our beds. with 15 beds allo¢Xted lo Out ot Area patients. Hafan Wen has becom8 the site of choice for many of our Knowsley and Liverpool clients - part of the re￿ntlY developed OHID Cheshirelmerseyside pathway - with keyworkers and clients preferring Hafan Wen and Parkland Place Lancashire over previous destinations such as Mersey Care's Hope Centre. Hafan Wen as a specialist medically managed unit also provides high intensity support to patients from across the UK and bayond. Our most complex clients are often admitted to Hafan Wen. Hafan Wen is fast emerging as a centre of ex￿llence for the trealment of ketamine addiction. This is due in part to expertise gained over the past 18 months to 2 y8ars, during which time admissions for ketamine have steadily grown, now accounting for approximately 25 /0 of our admissions across both BCU and OOA. Lead Nurse Katie Bryan has recendy completed her masterfs dissertation on Ketsmine, adding to our knowledge bank. There a￿ significant concems over the state of the building at Hafan Wen, discussions are ongoing with BCUHB around the fulure commissioning of Hafan Wen with v8riOUS Options being explored. ADFERIAD RECOVERY LIMITED TRUSTEES. REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Parkland Place Lancashire - our detoxtfication and treatment C8ntre in beautrful grounds in Chorfey continues to provide high quality SUPPOrt and we redeveloped this site in 202212023 to provid8 great8r capacity having been successful with a number of tenders to provide inpatient care for authorities across England. The sw11￿ now offers 23 rooms of an extremely high standard of accommodation and care and 202412025 has seen occupancy challenges improve. Parkland Place Lancashire has established itself as a preferred service provider on the OHID Northwest framework, the OHID CheshirelMer5eyside framework, and has also become one of the lead IPD providers for Lancashire County Council, following the closure of the Pavilion in Summer 2024. Adferiad now r￿1ve 75Ya of Lancashire County Council's IPD referrals, across both our Hafan Wen and Parkland Place Lancashire sites, amounting to spend of more than £1.25 million during 24125 from this framework alone. Parkland Place North Wales is a beaulitully appointed 16-bed residential rehab facility, based on the outskirts of Colwyn Bay, in estsblished park grounds. This site currently admits both private and slatutory clients for rehabilitstion, and covers a range of holistic. CBT-based treatments for alcohol dependency. substance use and gambling disorder. Our fully funded Gambling Hamis pathway remains one of the UK'S few dedicated residential services catering for gambling disorder. where this c(>occurs with other complex co-morbidtbes. The site has recently been further developed to include a n8w gym fa￿lity, wth various subtle changes to rooms such as coffee machines etc. A conservatory conversion is currenly underway lo develop the site further. We have added Parkland Place North Wa18S to various statutory frameworks over the past year. including Lancashire and LA4 (Durham-led), meaning we can admit further cli8nts for statutory residential rehab - with Gateshead currently being one of th8 main referrers. Contract Landscape We successfully bid to remain on a number of (Jur largest, key referral framewoths for IPD and ￿$[dentIal rehab over th8 course of 24125. Across our Inpatient and ResKlential Serv￿, we have supported over 1.090 clients and provided 13.354 bed nights. Crisis Sanctuaries Adferiad continues to play a crucial role in supporting adult mental health through rts Sanctuary Services across Ceredigion, Swansea, Neath Port Talbot and Cannarthenshire. During the 2024125 reporting period, Adferiad's Sanctuary Services have demonstrated siqnrficant reach and impact: A lotal of 1,T48 refe￿alS have been received, staff have conducted 1.612 support calls. which are critical in providing emotional support, and guidance to those in need. For individuals experiencing acute crises, direct interaction is often necessary, Adferiad has provided 451 clients with face-to-face support Serving as a lrfeline for many, offering comfort and practical advice during tim8s of distress. Adferiad worked in partnership with SBUHB CAMHS to continue developing th8 CYP Sanctuary in Llansamlet, Swansea by providing essential mental and emotional support lo children and young people across the region. During 2024125 Adferiad provided 201 ergagements with young individuals. Volunteering Adferiad Recovery is pleased to hold Investors in Volunt88rs ststus. This prestigious kitemark demonstrates that our approach to volunteers and volunteering is backed by high-quality processes and makes Adferiad Recov8ry one of only a few dozen organisations in Wales entit18d to use the Investors in Volunteers badge. Many of our seN1￿$ rely on the effort and generosity of volunteer5. This year, 96 volunteers C￿mItted 3,600 volunteering hours, a Gontribution for which we continue to be very thankful. Change Step* Adferiad's Vetsrans Services Change Step offers effective support for veterans, their families and carers in Wales. During this period, we successfully delivered on all projectslprogrammes in our curr8nt portfolio which included V818rans NHS Wales (BCUHB) where we successfully extended our existing contract up to March 2026; Tackling Isolation arKJ Loneliness. Thrive Together (formally known as Veterans Plac8s, Pathways and People programme) where we have successfully mov8d into a new phase of work which extend￿ our contrad to May 2027" Look Back to Move ADFERIAD RECOVERY LIMITED TRUSTEES. REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Forward. and Embedding Pr8v8ntion of Veterans Suicide which is a new project Whe￿ we deliver accredited Level 1 and 2 Peer Mentoring training to veterans across Wales. We have also retsined our Gold Award for D8f8nce Employer Recognition Scheme and are proactively fdisirvJ the profile of Change Step to ensure we are well positioned to grow this Servi￿ fvrther in 2025126. Domiciliary Care Adferiad is Registered with Care Inspectorate Wales (CIW} in six of the seven Partnership Areas of Wales., North Wales. Wesl Wales, Taf. Powys, Cardiff & The Vale, and West Glamorgan {This registration is currently domiant). Adferiad deliver a broad range of Domiciliary Support Services, ranging from Home Care, rbmiciliary care within an Extra Care Scheme, and Respite Care & Support. The Adferiad CIW Annual Retum Report that was submitted ft)r all Adferiad Registered Servi￿3 demonstrated that over 400 individuals had b8en provided with Domiciliary Support during 2024- 25. Adferiad Recovery delivers a range of domiciliary care services across Wales, including floating care services. support in shared accommodation and an extra care scheme. During 2024125, Care Inspectorate Wales (Clw) inspect8d the North Wales Domiciliary Services and Parkland Place North Wales. Adferiad received exc8118nt Inspection Reports for these services. Tlme to Change Wales It was ￿nfirned that fime to Change Wales. the national anti-stigma programme for mental health, will end on 31 st March 2025 after 13 years of delivery. Despite extensive efforts. continuation funding beyond the current phase could not be secured. The programme, which has been delivered in partnership be￿en Adferiad and Mind Cymru 8nd funded by We15h Govemment has played a vital role in challenging mental health stigma and discrimination across Wales. Both delivery organisations expressed serious concem about the irnpact this closure may have on people with lived experience. who o)ntinue to face daily stigma and marginalisation. Further discussions are ongoing to explore altemative mechatwsms for continuing this important work. Mental Health & Money Advl¢e Mental Health and Money Admce continue to provide dear. praclical advice and support for people experiencing issues wilh mental health and money. The positive financial gain for our dients during this period was £1.126,671. and we supported 360 new clients in addition to ongoing caseloads. Treatment Services: Adferiad continues to offer a wide range of support to individuals whose lives are negatively impacted by substance US8, both strategically and within the community. Working closely with our partners. we provide services to those aged 18 and above, including a harm reduction model of Ixr8, a hidden hami service, an abstinence program based on the Minnesota model. and a family support service. The implementatson of a rapid onevtowone harm reduction program in the NPT area has signrficantly increased our capacty to handle a greater numw of referrals. During 2024-2025. treatment services across Swansea Bay diredy supported over 1.500 individuals, ¥Mth more than 1,000 new referrals. Mental Health Servlces Adf8riad's community mental health serVI￿S continue to provide essential mental health support across Wales. During 2024125. Adferiad supported 1,375 active clients and received 467 referrals into our mental health and wellbeing services across Wales. During 2024125 Caniad CVUHB (Cardiff & Vale Universty Hèalth Board) has continued to play an active role in shaping mental health servic8s across Ihe region. Wothng closely with the Universty Health Board, the Mental Health Clinical Board (MHCB), and olher mentsl health tearns, Caniad has halped ensure that people with lived experience are at the heart of servic8 improvement and developmenl. ADFERIAD RECOVERY LIMITED TRUSTEES. REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 In total, 58 engagement opportunities were taken fopward, raroing from involvement in Heallh Board management inteNiew panels and servic8 improvement advisory groups to contributing to the M8ntal Health Clinical Board Family Engagement Stakeholder Event These activities enabled 147 individuals with lived experience to share their perspectives, influence decision-making, and support meaningful changes. Now fimily 8Stablish8d as part of the Health Board's Lived Experience Panel, Caniad CVUHB continues to ensure that these contributions are valued, purposeful, and lead to real impact. During Ihis period. Adferiad estsblished an All-wales Mental Health Fowm with Ihe first meeting in October 2024, to ensure consistency, aligning shared SeN1￿ delivery models. reflective practice. revi8wing organisational needs and establishing a strong peer support net￿rk across Wales. To date there are 20 servi￿5 represented every quarter, who have participated in: Reviewing shared themes of unmet need regarding those who use our services Engaged in training inGluding Diverse Cymru Black. Asian & Minority Ethnic Mentsl Health Awareness Raising Following the review of the themes. the Forum hav8 been V￿rkIng on a coprodu￿￿ response to Crisis Management. Hosted talks around Adferiads experiences with and when supporting peopl8 to US8 Mgntal Health Statutory Services, in particular Crisis based intervenlions with the NHS Perfomance and Improvement. National Clinical Lead for Mentsl Health Steve Clarke. Introductions and department joint working meelings to strengthening interdepartmental working. The Forum is now reviewing how we can be more effective in being accessible to our teams given Adferiad's reach across the country. Families & Carers Services Adferiad operates 23 families and carer services across Wales and supported 8.171 carers during 2024125. Our services for carers include Carers Respite Sérvices, ca￿rS Assessment services, Information, Advice. and Guidance. Carers Newsletters, Training, a hospital-based se￿iCe including Carers Café in Gwent. and Carers Card Schemes. Additionally, we established an intemal Carers Forum. which meets in person iwice a year lo shar8 best pradices and ideas for developing our carer seNices. Problem Gambling Adferiad continues to work with academic partners to deliver the 'Look Back to Move Forward, proj8Ct, which will develop a new timeline assessment of gambling, alcohol use, and mental health in reCen￿Y transitioned veterans. It will lead to systems-wide change in help and support s8Nices for veterans with complex addiction ne8ds. This is a collaboration with Anglia Ruskin University, Swansea University and funded through a Transformational Grant award of £300,000 from the Amied Forces Covenant Fund Trust. Our Strat8gic Lead of Gambling Related and Other Hami8 provides the Secretsriat for the Cross-Paty Group on Gambling at the Senedd and has spoken at a number of conferences in the UK and Europe in 2024125 further cementing Aéferiad's place as a leading provider of seNices. We continue lo deliver the National Gambling Treatment servi￿ which has been extended based on project outcomes. Crlmlnal Justl¢e Services Adferiad continues to work in this challenging space through local services such as Ty'n Rodyn and Ty Adf8riad, both of which are highly successful. The Cirdes of Support and Accountability (COSA) projed works with some of our more complex clients across Wales and is achieving great outcomes, it has also enabled us to build a strong ne￿ork of partners including the Ministry of Justice (MOJ}, Police. and HMPPS. Our Dyfodol service operates across HMP Swansea, HMP Cardiff. HMP Prescoed, and HMP Usk. Be￿een April 2024 and March 2025, we provided support to 6,372 individuals, WFth the following impact: 9,467 strLtctured, one-to-one Glinical support sessions delivered 17,033 unstructured, one-towone support sessions provided 1.786 people engaged in group sessions 10- ADFERIAD RECOVERY LIMITED TRUSTEES. REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Our interventions included: one-towone clinical support. brief inlerventions. SMART Recovery, brief intervention groups, acupunctur8, Motivate to Achieve, Towards Recovery, mutual a￿, and peer-led support. These initiatives demonstrate our commitrnent to supporting individuals within the crirninal justice systsm, while also working towards a broader visiowreating clear pathways to rehabilitation, p8rsonal grovrth, and long-t8mi wellbeing, We recognise that achieving th8se OLrtcomes requires ajdressing complex and interconnected needs with a holistic and person-centred approach. Adferiad's Appropriate Adult Service continued delivery to South Wa18s. Dyfed Powys and Gwent Police Fo areas. During 202412025. we supported a total of 3,980 vulnerable adults during poli￿ detention and questioning, representing an almost 20 /0 increase from last year. We trained 54 individuals across Wales to become Appropriate Adults and delivered vuln8rabilty trainin9 to more than 60 custody sergeants across the 3 force areas. During this period, our Service Manager also became a Trustee for the National Appropriate Adult Network, and we secured an additional contract to provide Appropriate Adults for anima welfare criminal investigations conducted by the RSPCA {up to 70 mre callouts per year). We also attended 22 Callouts to extemal agencies such as the DWP, British Transport Police, and NHS fraud investigations. supporting our goal of engaging with extemal organisations conducting interviews under caLrtion. Diverse Cymru During the first year of operation as part of Adferiad we delivered 101 s8ssions to 42 organisati￿S {some of which e.g. local health boards, having multiple workplaces and departments) as part of the Cultural Competence Certification Scherne. We also delivered 11 bespoke *ssions to 7 organisations or workplaces outside of the membership schem8. During the same period 21 organisations have become paid members. Subsldlary Undertaklngs Activities and achievements are summarised as follows: CAIS Social Enterprises It was a wnning year for CAIS Social Enterprises and its partner St Giles Tnist. vlho joindy received the Con7munrty based Social Enterprise Award at the Social Business Wales Awards, in October 2024. This recognition celebrated tha achi8v8ments of Y Pantri Social Supennarket based in Station Court, which has supported 453 families while diverting more than 14,OOOkg of food from landfill. Financially, 2024125 was another challenging year. but one which showed gradual improvement within the cafes. as footfall and tumover increased and costs were closely controlled. The introduction of 'A Problem Shared. counselling service during the year rna￿@d an important step in diverstfying the social enterprise offer. This service provides rapid and accessible on-line support, deliver￿ by qualified couns811ors. Furth8rmor8, CAIS Social Enterprises twk its first steps into providing Consultancy Services, supporting a local communFty group to manage th8 finances and govemance relating to a substsnlial grant it had receivad. The Board of CAIS Social Enterprises is grateful to Adferiad for the continuing support for the company but acknowledges Ihe need to respond to the ongoing financial challenges facing th8 businesses. As such, work continuas to further develop the new income streams- which have been introduced in 2025. Achievement and perfomiance Internal and External Factors Adferiad Recoverls greatest asset is its staff, which is recognised as integral to t(ith internal functions of the organisation and ils operational services. Successful service delivery is largely attributed to a level of internal factors such as appropriate training, personnel management, quality. information systems, safeguarding and health & safety within Adferiad Recovery. Adferiad Recovery staff have re￿iVed both Safeguarding training and Domestic Violence and Abuse training during the year and are supported by the Safeguarding team to identify and manage safeguarding concems appropriately and effectively. 11 ADFERIAD RECOVERY LIMITED TRUSTEES. REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Our training team delivered a diverse programme of leaming opportunities. offered both face-to-face and online. In 202412025, over 9,000 training places were provIde(￿M0r8 than double the number offered the p￿viouS year. A total of 460 courses were delivered, averaging 1.7 courses per day. Training spanned 120 differenl topics and reached between 50 and 75 different organisations each nTh)nth. During 202412025 Adferiad Recovery had an average of 692 full and part-time stsff on payroll across Wales and in Lancashire and had staff located in all 22 Counties of Wales. Consistent policies and procedures on pay and conditions apply to all stsff. During the year the Charity a)mmunicated and consulted regularfy with its employees through monthly webinars: regular staff meetings" staff news18tters and mailings", and a range of meetings which cascada information both up and down the organisational structure. Mud) of Ihi5 infomiation is shared externally with project partners and stakeholders through similar methods. Adferiad Recovery's Trustees see Iheir employees as key stakeholders in the Chaiity and consult staff both fomally and infomally on the policies and direction of the Chanty. The Charity has a recognised trade union (UNISON) to represent staff and staff have free. non-voting, associate membership of the Chartty. Adferiad achieved membershlp of the Living Wage Foundation in 2023124 and has retained that membership despite challenging financial headwinds. The increase in National Insurance due in April 2025 meant that planning for pay in 2024 ahead of the new financial year was challenging. Adferiad Recovery has worked hard to ensure that all employees are paid the Living Wage Foundation pay rate and will continue to work with funders to ensure that ￿ntract arTangements reflect the value of Adferiad Recovery staff. Austerity and inflationary pressures combined with minimal or zero uplifts on contract values makes it increasingly difficult to maintain this position, bul Adferiad Recovery continues to work with UNISON, and to lobby Welsh Gov8rnment lo ensure that no public serwces contracts are issued at less than Living Wage Foundation rates. We continue to seek ways to support our teaffl Ihrough Cadw'n lach (Keeping Well) - a programme providing staff benefits, counselling support. wellbeing benefits, and a helping hand where needed. Adferiad Recovery is seeking to become the employer of choi(x. The founding Charities developed a model where managers and future managers met for shared leaming and peer support, This programme also informed and supported the transition in the merger. Within this programme a number of managers undertook ILM Leadership and Management awards, and it is pleasing to note that of the ￿rrent team of Directors and Associate Directors, almost thirds of the team hav8 d8veloped through this approach. We support a number of staff undertaking post graduate leaming including MBA programmes. and in August 2023 we instituted our new future leaders programme. aimed at developing career pathways so that we retain and bulld on the talent within. This future leaders programme was open to all grades of staff across Adferiad, and over 80 staff signed up for the introductory conference at Bangor Universty. This Confe￿nCe provided an opportunity to consider the leadership role, the nalure of ILM programmes, and to hear from insighttul and inspirational speakers about organisalional and personal improvement. After this conference, applicatb?ns were sought from staff who wished to undertake ILM courses in leadership and managem8nt, and in partnership with Gower Colleg8. ov&r 50 staff undertaking these qualifications in 2024125. The ILM cohorts have continued to work on organisational priorities, and this provides them with opportunities to be 8ngaged in strategic development and leadership within Adferiad, and for Adferiad to reap ihe benefits of this motivated and ambitious group of staff. A process of dynamic and informative intemal communication underpins the company ethos, which is delivered through a range of media such as the quarterfy newsletter, staff away days. intranet updates, the CEO'S monthly webinar, quarterly staff briefings across the country, and our Sharepoint system which provid8s a single point of access for staff. 2024125 also saw the planning for the introduction of a new combined HR and payroll system. CipHR which will be fully implemented in 2025126. 12- ADFERIAD RECOVERY LIMITED TRUSTEES, REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 staff awards are made to those individuals and teams who are nominated by their peers as providing outstanding suppyjrt to beneficiaries or colleagues. Adferiad Recovery staff are also recognised with awards for long service with significant numbers of staff exceeding fifteen years w￿rkIng for the organisation. and some approaching thity years. External factors influencing perfomiance and achievement are largely inftuen￿d by public sedor commissioners such as the Welsh Government. Local Authorities and the Heath Boards. Through its diverse range of s8rvices, Adferiad Recovery has bean abl8 to maintain its core position during the year whilst increasing Oth￿ areas in deliv8ring programmes to the highest stsndards. Becoming a Rights Affimiing Organisation Adferiad Recovery is committed to placing the rights of individuals at the heart of everything we do. However. simply safeguarding rights is not sufficienl. As a campaigning organisation. a voice for our benefi(aaries, and a significant employer. we hold a moral obligation to go beyond compliance. As a charity. we are also bound by a duty to deliver public benefit, which means eX￿eding the bare minimum to drive meaningful and laskn'ng change. In Seplember 2021, our Board of Trustees formally committed Adferiad Recovery to becoming a Rights Affinning Organisation. Whi18 initially conceived as a three-year initi'ative, this commitrnent has evolved into a core part of our mission and is now embedded within our continuous improvement framework. This strategic direction is focused on building a values- and behaviours-based culture across Ihe organisation, providing education and support to staff and volunteers, and engaging with extemal partners to ensure Adf8riad is inclusive. representative, and proactive in challenging all fomis of discrimination arKJ disadvantage. We are proud lo be working in parln8rship with key stakeholders including the Equality and Human Rights Commission, the Royal College of Nursing, Divetse Cymru. and the Wales Observatory on Human Rights of Children at the Hillary Rodham Clinton Schod of Law, Swansea University. In December 2021, we puNished our Anti-Raasm Statement, reinforcing our publi¢ commitment lo equity and justice. We were honoured to receive both a Gold arKI a Ruby award in 2023124 from the Diverse Cymru Culturdl Competence Certification Scheme. The Rights Affiming Steering Groups submitted a comprehensive pr(JJress report to the Board of Truslees and presented key updates to all staff during our Annual General Meeting. sign[fi￿nI strides wera made throughout 2023124, and this agenda remained a lop organisational prionty. This relationship meant that senior staff in Adferlad and Diverse Cymru built up trusting relationships allowing greater opportunities forjoinl working in th8 y8ars ah8ad. At the close of the 2023124 financial year, AdfeTTad was approached by Diverse Cymru regarding a potential merger. This merger was formally approved and took effect on 1 April 2024. merger was completed and several Board members of Diverse Cymru joined the Adferiad board. and all staff were TUPE transferred into Adferiad. Thère were a number of seNices wh8re funding was due to cease. and these Se￿iceS were wound down in an orderty manner. Adferiad has continued to promote the work of Diverse Cymru. and the brand has be&n retained for our work in this area. This strategic merger significantly enhances our capacty and impact as a Rights Affinning Organisation. Throughout 2024125. our staff-lad groups have u)ntinued to contribute posilively to our Rights Affirming agenda. Results from our staff survey demonstrate that Equity, Diversity, and Inclusion {EDI} are becoming deeply embedded in our culture. Notably. 83°A of respondents agreed that Adferiad is a div8r58 organisation, and 830 raported feeling safe to be theMSe￿eS at v￿rk. As part of our ongoing (x)mmilment, we have also undertaken a comprehensive review of our organisational policies to ensure they reflect and uphold our core values. This process ensures that all intemal procedur8s and guidance align with the principles of equity, dignity, respect. and inclusion-further embedding our Rights Affim)ing ethos into the daY-t￿laY running of the organisation. In addition to maintaining our existing accreditations. we were proud to be namad finalists in the Wales HR Awards, an achievemenl that highlights the commitment and leadership of our staff in advancing our Rights Affirming goals. 13- ADFERIAD RECOVERY LIMITED TRUSTEES. REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Financial revi8w The 2024125 finanGial staternents represent the fourth sel of accounts for the merged organisation and show an increase of 12Y• in income levels. During the year there was an overall increase in Total Funds of £905.635. largely due to the fDlloNing exceptional transactions during the year: 1. A Donation of £207,052 relating to the net assets of Diverse Cymru was recognised in Adferiad's books following the merger between the two organisations on 1stApril 2024. 2. A Revaluation of Adferiad's Investment Properties result￿1 in a net gain of £423.700 The actuarial valuation of the Gwynedd Pension Scheme for the year showed a signfficant improvement, with a net gain on scheme assets of £471.000. largely due to a reduction in scheme liabilities. However, in line wilh accounting rules, no pension asset can be recogni5ed in the Balance Sheet, as Ihe Asset Ceiling is currently Nil. As a result, the brought forward amount of £21,000 and the current year gain of £471,000 have been written off. Investment pollcy and objectives In accordance with the Adferiad Recovery Financial Regulations, the charitable company has an investment policy of investing liquid funds on short-term deposiks. which can be accessed readily. The charivs finance departm8nt monitors the return on investment, ensuring income is maxirnised whilst remaining at low risk. Reserves policy Adferiad held un-restricted reserves of £ £9.304,241 (excluding Pension) on 31st March 2025, which is invested in both tangible fixed assets and Current assets. Adferiad Trustees recognise that the calculation of Free Reserves should exclude fixed assets as they are not readily available to contribute to working capital requirements. Of the unrestricted reserves above, £6,069,202 is ti8d up in fix8d assets, leaving £3,235,039 in 'free reserves., Based on the annual cost of funding the organisation's staff and accommodalion. th8 Trustees consider th8 value of free reserves noted above is adequate to cover Adferiad's committed expenditure for just over one month. This is acknowledged as falling below the target level of three months. as set out in the Financial Regulations, however Adferiad delivers on a wide range of Servi￿5, diverse not only in their nature, but also in the furding streams. There is no reliance on any single commissioner, but instead Adferiad accesses a portfolio of both Statut￿ and non- statutory funding, as well as Trusts, private income and donations. Adferiad Trustees feel there is adequate reser¥es to provide fina￿tal flexibility in meeting any forthcotning challenges around temporary delays in cash receipts. working capital fluctuations and responding to emergencies. but seek to improve the level of 'free reserves. in 2025126. 14- ADFERIAD RECOVERY LIMITED TRUSTEES, REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Prln¢ipal risks and uncertalnties Adferiad Recovery's Truste8s hav8 agreed an updated General Statement of Policy under the Health & Safety at Vvork Aci 1974. Adferiad Recovery has also assessed risk in relation lo business and financial management and incorporated safeguards in the Financial Regulations and Delegated Authorities and Financial Standing Orders which were reviewed and updated in 2023124 by the Trustees. During the year Trustees reviewed Adferiad Recovery's corporate risk assessment which addressed the major risks to vthith th8 Charity could be exposed, and a Corporate Risk Register was reviewed by Trustees on a quarterty basis. This Risk Register identifies and addresses the following: Probability of the risk - Perfomianc8 impact Mitigating actions - Contingency plans - Stskeholders affected - Associated intemal l extemal risks Risk owner Adferiad Fiecovery's Health & Safety Committee convened as ne￿SSary during the year to monitor and review the saf8ty of activiti@s. Adferiad has b8gun to iTnplefflent furth8r robust working practices including its digital approach in line with IS045001 and we were Su￿Ssful in our inrtial assessment in March 2025. A fuller audil is scheduled for 2025126. This approach has meant that there has been a reduced need to engage wtth Health and Saf8ty sp8cialist Amanda Trimble in 2024125. Key organisational improvements in 2024125 included investigation training, differentiating be￿een accidents. incidents. near misses. and clinical incidents in our reporting systems, and the provision of Managing Safely Training. Plans for future periods The results of the General Electron in Westminster this year provided a change in Government. Th8 new Labour administration continued wth the ongoing work to update the Mental Health Act 1983 along with a number of new health and social care and employment initiatives. Some of these will have an impact on our wotl( in Wales, but as health and social care is a devolved rnatter to Ihe Senedd, we can only hope that the increase in investment planned for England will ￿sUIt in a favourable settlement for Wales. We know thal there will be an eledion in May 2026 for the Senedd. The results at this election will be highly significant for Adferiad's work and for the care and support needed by our beneficiaries. We wll w(xk with all political parties to seek to influence their manifestos to include prioritising the needs of our be￿fiCianes. The naw makewup of th8 Senedd which is increasing to 90 seats. means Ihat more parlnership work at Govemmenl is likely. Adferiad, through the expansion of our policy team will be well placed to influence, guid8, and èducat8 new members of the Senedd in the issues affecting our beneficiaries. Adferiad Recovery remains committed to partnership working within the statutory and voluntary sector in pursuance of the best possible Servi￿ to our client group. Partnerships allow Adferiad Recovery to respond in the following ways: Seek joint working relationships with providers based elsewhere in the UK to develop shared approach8s, increase awareness of Adferiad Recovery. and to share best practi￿. We will also continue to invest in our partnerships with Mental Health UK. the Wales Allian￿ for Mental Health (WAMH}, Gamian. EUFAMI. DACW, and other alliances to ensure the voice of our beneficiaries is heard. Adferiad continues to strengthen its research partnerships with leading universitEs across Wales and the UK. We are working with Swansea Univarsty on an Al and Mental Health study. co-authoring a paper for submission to the Joumal of Medical Ethics and contributing to national debates on the ethical use of Al in healthcare. Our research has already infomed a Parliamentary Office of Science and Technology briefing and featur8d in tha British Academy's Age of Mistrust? series. 15- ADFERIAD RECOVERY LIMITED TRUSTEES, REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Alongside this, we ar8 collaborating wrth Cardiff Universty through the Mental Health Hubs and Lived Experience Advisory Panel (LEAP). contributing to publications on inclusive involvement and preparing for the Hub's formal launch later this year. We are also supporknng academic projects at Wrexham University. exploring public perceptions of peer Mentoring. and are in early discussions with Bipolar UK and research partners about future joint studies. Through these partnerships. Adferiad is helping to shape ethical, evidenc&based researth that addresses the real challenges faced by people with mental illness. addictions. and complex needs. Adf8riad is dedicated to not only improving individual outcomes but also contributing to the broader knowledge base of mental health, subsiance use, gambling-related hamis and co-occurring complex needs. This steadtsst commitment to research and evidence-based practic8 und8rscores our mlssion to provide the most reliable and impactful support to Ihose we serve. Overall. Adferiad Recovery seeks to consolidate its positic)n through prudent financial and operat￿nal management. Wa will continue to provide an effective. (aring and dedicated enhanced Servi￿ to those people seeking the charity's help. Our firsl year since the merger with Diverse Cymru has allowed us time to commission a r8view of th8 Workplace Cultural Competence Scheme, and this will report back in 2025126 with recommendations for both the Scheme delivery and the financial development needed to secure the future of the programme. We know that the Swansea Bay substance use tender is to take place in 2025126 and we intend to work closely with partners lo seek to continue our engagement in this service. This t8nd8r. along with tenders for Cyfie Cymru, and Dyfodol services, provide opportunities for further joint working and Adferiad is keen to build upon the excellent work already in place across the country with a rarKJe of partners. We expect in 2025126 that we will need lo find a more upttrdate Ication for some of our inpatient services. This is due in part to existing facilities reaching end of lrfe, but also the acuty of pati8nts now requiring detox support means that we need greater availability of moving and handling equipment. clinical facilities, and accessible rooms. We will work with commissioners. the local communiti8s, elected officers. and Govemment to ensure any move is managed sensitively and approprialely. Structure, govemanGe and management Adferiad Recovery is a charity having been formed in 1976 when it was called Clwyd and Gwynedd Council on Alcoholism, later becoming CAIS. It became a charitable company incorporated on 28 September 1992 and registered with the Charity Commissioners of England and Wales (number 1039386). It is also a company limited by guarantee (number 02751104) and is governed by its Memorandum arKI Artides of Association amended on 1 April 2021. Adferiad Recovery took on its currenl structure, name. and rnission on 1st April 2021 following a merger b8tween Ihree corporate charities, CAIS, Hafal, WCADA, and Adferrad Recovery CIC (a special purpose vehicle jointly owned by the three corporate charities). Adferiad Recovery's Mission Ststement is as follows: °Adferiad Recovery responds to the needs of people facing a range of c1￿ccUrrIng h8alth conditions and complex social cir¢umstances- people who are seldom seen and seldom heard." 16- ADFERIAD RECOVERY LIMITED TRUSTEES, REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Adferiad Recovery opera18s as a single company with up to twenty Trnstees serving as Directors. The Trustees of Adferiad Recovery constitute its Board of DI￿¢tOrS, are the subscribers to the Memorandum, and serve for tems of up to three years following eith8r appointment by the Board. election through a ballot of associate Members, or co- option. Adf8riad Recovery is managed by its Trustees who meet four times a year for that purpose. A Finan￿ and performan￿ sub-Q)mmittee and a Peopl8 and Compliance SUb￿0mMittee with ratified temis of referen￿ and delegated authorities meet quarterly. Tnjstees are ￿llectIVelY responsible for reviewing and agreeing senlor stsff benefits and achieve Ihls by means of referenc8 to recomm8ndations received from the Finance and Performance sU￿0mmIttee. Training for Trustees is provided both intemally by Adferiad Recovery and externally trtrough accessing infonnation from Blake Morgan LLP, the Charity Commission, Companies House and other relevant organisations. Trustees receiva an Induction Pack which includes Adferiad RerA)very's Arlides of Association, Adferiad Recovery's latest ststutory accounts, minutes of most recent meetings. relevant policies and procedures, and Charity Cijmmission publications relating to Trustees, roles and responsibilities. Trustees meet wtlh the senior management team when they commence their term of offi￿, and during the year Trustees visit local s8rvices, shadow staff and attend local events to gain first-hand knowledge of service delivery. Infomiation from training events is circulated and discussed by all Truslees. A formal system of delegation of authority is in place enabling the day-ttrday running of the Charity by executive officers with reference as required to th8 Chair. Vice Chairs and Honorary Treasurer. In 2024125 Charity's leadership structure was modified to restructure to meet Ihe needs of the organisation going fornard. Detsils of the team have be8n included earlier in this report. In addition to th8 Head oifrce in Cown Bay. Adferiad Recovery has offices in Swansea, bases in all counties of Wales along with a National Resou￿ Centre in Cardiff and a residential ireatment centre in Lan¢ashir8. Adferiad Recovery works closely with the Wales Allian￿ for Mentsl Health in Wales and with Rethink Mental Illness (England), Mindwise {Northem Ireland) and Change Mental Health (Scoljand) as part of Mental Health UK (Adf8riad Recovery's Chief Executive is a Trustee of MHUK) and with othèr similar charities across the British Isles on both a b8spoke basis and also as a member of the Mentsl Health Ailiance. Adferiad Recovery is a member of1he Global Alliance for Mental Illness Advocacy N8lworf(s (GAMIAN) and is represented at Board level. Adferiad Recovery is a member of Developing a Caring Wales (DACW). a Welsh Consortium providing a complete range of services for people affected by alcohol and dnjg misuse and mental health difficulties. Adferiad Recovery's Chief Executive is a Trustee ot DACW. The r8gister8d office of DACW is at Adferiad Recovery's registered address in Colwyn Bay. The trustees, who are also the directors for the purpos8 of cofflpany law, and who served during the year and up to the date of signature of the financial statements were: Mr Clive Edmund Wolf8ndale (Vice Chair) Mr Howard Jones (Vice Chair) Mr Simon Paul Gr8en (Honorary Treasurer) Dr Dyfrig Morgan Ap Dafydd DrAndrea Lynne Davies Th8 Right Rev. John David Edward Davies Mrs Wicki Evans Prof. John Hunt Mrs Samina Khan Rev Susan Northcott (Chair) Prof. Richard Ow8n Mrs Karen Jayne Ozzati Mr Dean Pulling Mr Robert Cledwyn Williams MS Maggie Dix Mr N D De Figueiredo Councillor Mary King Paschall Sherwood Ms R Gibson (Resign&J 18 September 2024) (Resigned 18 September 2024) (Appointed 19 June 2024) (Resigned 19 June 2024) (Appointed 19 June 2024 and resigned 18 June 2025) (Resigned 19 June 2024) (Appointed 18 September 2024) 17- ADFERIAD RECOVERY LIMITED TRUSTEES, REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Dr S P Butterworth Mrs A J Hourihane Mr W Thomas Mrs S B Warrington (Appointed 4 December 2024) {Appointed 18 September 2024) (Appointed 4 December 2024) (Appointed 18 September 2024) Inductlon and tralning of new trustees Trustees are invited to receive the same level of induction and training as an employee, which alk)ws them to cary out their dulles with the benefit of understarKling. In execution of their duties every Trustee is entitled to be indemnified against relevant costs incurred. Key management remuneration Directors are appointed as part of a re¢ruitmenl process led and implemented by the board. their salaries ar8 benchmarked by industry levels. Executive Officers in 202412025 were: Chief Executive.. Alun Thomas D8puty Chief Executive:Sharon Jones Company Secrelary:Marian Williams Director of Finance: Sandra Ackers Director of Operations South.'Lianne Martynski Director of Operations North- Naomii Oakley Director of Hospital, Residential, and Therapeutic Servic8s=Kirn Ellis Director of PublicAffairs & Communications:Donna Chaves Director of People and Culture:Aled Davies Related partles Adf8riad Recovery has a controlling interest in the following subsidiaries: CAIS Social Enterprises Limilod Wholly owned. Operating as a trading company The Jlgsaw Organlsation Limited Wholly owned. Whilst the legal entity is dormant, Jigsaw operates as part of Adfariad Recovery wtthin restricted reserves. Eln Cyfle CIO Charitable Incorporaled Organisation. Specifically set up as a special purpose vehicle jointly owned by the three corporate charities {CAIS, Hafal and WCADA) ahead of th8 merg8r on 1 st April 2021. The charity ceased activities on the 1st April 2021, but remains registered. Hafal Hafal remains regislered but is dormant since the merger in 2021. WCADA WCADA remains registered but is domlant since Ihe merger in 2021. Auditor In accordance with the company's articles. a resolution proposing Ihat Champion A¢counlants LLP be reappointed as auditor of the company will be pul al a General Meeting. 18- ADFERIAD RECOVERY LIMITED TRUSTEES. REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Disclosure of information to auditor Each of the trustees has confirmed that there is no infonn2tion of which they a￿ aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have iaken appropriate steps to identify such relevant infomation and to establish that the auditor is aware of such infornation. The trustees. report was approved by the Board of Trustees. Mr Cliv Trustee nd Wolfendale (WI￿ Chair) Rev Susan Northcott (Chair) Trustee 19- ADFERIAD RECOVERY LIMITED STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2025 The trustees, who ar8 also the dir8Ctors of Adf8riad Recovery Limited for the purpose of Company law, are responsible for preparing the Trustees, Report and the financial statements in accordance wth applicable law and United Kingdom Accounting Standards {United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial ststements for each financial year which give a twe and fair view of lh8 state of affairs of the charrty arKI of the incomtng resources and application of resources. including th8 income and expenditure. of the charitable company for that year. In preparing these financial statements, the trustees are required to: - select suitsble accounting policies and then apply them consistently. - observe the methods and principles in the Charities SORP: - make judgements and eslimates that are reasonable and prudent., state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statemenls.. and prepare the financial statements on the going concem basis unless it is inappropriate to p￿Sum& that the charity will continue in operation. The trustees are responsible for keeping adequate accounting records that disclose wlh reasonable accuracy at any lime the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2Q06. They are also responsib18 for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and deteclion of fraud and olher irregularities. ADFERIAD RECOVERY LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ADFERIAD RECOVERY LIMITED Oplnlon We have audited the financial ststements of Adferiad Rewvery Limited (the 'charity') for the year ended 31 Marth 2025 which comprise the statement of financial activities, the balance sheet, the ststement of cash flows and notes to th8 financial statements. including signthcant accounting policies. The financial reporting framework that has b88n applied in their preparation is applicable law and United Kingdom Accounting Standards. induding Financial Reporting Standard 102 Th8 Financial Repo￿ng Standard applicabl8 in th8 UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: give a true and fair view of the slate of the charitable compan￿$ affairs as at 31 March 2025 and of its incoming resources and application of resources. ind￿1ng Fts incc*ne and 8XP8nditure, for the year than have been properly prepared in accordance with United Kingdom Generally AC￿pted Accounting Pract[￿. and have bgen prepared in accordan¢a with the requirements of tho Companies Aci 2006. Basls for oplnlon We ¢£)nducted our audit in aCcorda￿e with Intemational Standards on Auditing (UK) (ISAS (UK)) and applicable law, Our responsibiltlies under those standards are further described in the Auditorfs responsibilities for the audit ol the financial statements section of our report. We are independent of the Gharity in accordance with the ethical requirements that are relevant lo our audtt of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in acixjrdance ￿￿th these requirements. We believe that the audit eviden￿ we have obtained is sufficient and appropriate to provide a basis for our oplnion. Conclusions relating to going concern In auditing the financial statements. we have conduded that the trustees. use of Ihe going concem basis of accounting in th8 preparalion of the financial statements is appropriate. Based on the work we have performed, we have not id8ntif18d any material uncertaint185 relating lo events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least ￿e1Ve months from when the financial slatements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concem are described in the relevant sections of this report. Other inforniatlon The olhar infomiation comprises the infomiation included in the annual report other than the finartial statéments and our auditorf5 report thereon. The trustees are reS[￿nsIble for the olher inforrnation Contained within the annual r&port. Our opinion on the financial statements does not cover the oth8r infomiation and, except to tha extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other infomiath)n and, in doing so. Consider whether the other infomation is matsrially inconsistent with the financial statements or our knowledge obtained in Ihe course of the audit, or otherwise appears to be materially misstated. If we idenlity such material inconsistencies or appa￿nt material misstatements. we are required lo det8mine whether this gives rise to a material misststement in the financial ststements thems81v8s. If. based on the work we have perfomed. we condude that there is a material misstatement of this other infomiation, we are required to report that fact. We have nothing to report in this regard. Oplnlons on othar matters prescrlbed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of our audit: th8 inforniation given in the trustees. report for the financial year for which the financial stat8ments are prepared, which includes Ihe diredor5' report prepared for the purposes of cornpany law. is consistent with the financial statements,. and the directors. report induded within Ihe trustees. report has been prepared in accordance with applicabl8 legal requirements. -21 ADFERIAD RECOVERY LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF ADFERIAD RECOVERY LIMITED Matters on which we are required to report by exception In the light of the knowledge and understanding of the charity and ils environment obtsined in the course of the audit, we have not identified mat8rial misstatements in the directors. report included within the trustees, report. We have nothing to report in respect of the following matters in relation to which the Charities {Accounts and Reports) R8gulations 2008 requires us to r8POrt to you if, in our opinion: adequate a￿Unting records have not been kept, or retums adequate f￿ ￿Jr audit have nol been received from branches not visited by us. or th8 financial statements are not in agreement with the accounting records and retums. or certain disclosures of trustees, remuneration specffied by law are not made,. or W8 have not received all the infomiation and explanations we require for our audit- or the trustees were not entitled to prepare the financial statements in accordance with the small rnmpanies regime and take advantage of the small companies. exemptions in preparing the trustees. report and from the requirement to prepare a strategic report. Responsibilities of trustses As explained rn0￿ fully in the ststement of trustees. responsibilities, the trustees. who are also the directors of the charity for the purpose of cornpany 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, whèther due to fraud or error. In preparing the financial statements. the trustees are responsible for assessing the charity's ability to continue as a going concem, disclosing. as applicable. matters related to going Goncem 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 altemative but to do so. Auditorfs responsibilities for the audit of the financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objective5 are to obtain reasonable assurance about whether the financial ststements as a whole are free from material misstatement, whether due to traud or error. and to issue an auditor's report that indudes 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 deled a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in Ihe aggregate, they could reasonably be expected to infiuence the economic decisions of users taken ¢)n the basis of these financial statemants. The extent to whiGh our procedures are Gapable of detecting irregularities, including fraud, is detsiled below. As part of our planning process We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of i￿egUlar1tieS and fraud, and whether there was any known, suspected or alleged fraud. Management did not infomi us of any known, suspected or alleged fraud. We obtained an understanding of the legal and regulatory frameworks applicable to the company. We d8t8rmined that the following were most relevant: FRS 102, Companies Act 2006, Charities Act 2011 and compliance with safeguarding and health and safety laws. We considered the incenlives and opportunities Ihat exist in the Company, including the extent of management bias, which present a potential for irregulariti&s and fraud lo be perpetrated, and tsilored our risk assessment accordingly. Using our knowledge of the company. together with the discussions held with management at the planning stage, we formed a conclusion on th8 risk of misstatement due to irregularities including fraud and lailored our procedures according to this rtsk assessment. -22- ADFERIAD RECOVERY LIMITED INDEPENDENT AUDITOR'S REPORT {CONTINUED) TO THE MEMBERS OF ADFERIAD RECOVERY LIMITED The key procedures we undertook to detect irregularftles Includlng fraud during the course of the audit included: Identfying and testing journal entries in overall accounting records. in particular those that were signrficant and unusual. Reviewing the financial statement dlsdosure5 and determining whether aCC￿nting policies have been appropriately applied. Reviewing and challenging the assumptions and judgements used by management in th8ir significanl accounting estimales, in particular in relation to depreciation methods. - Assessing the extent of complian￿. or lack of, with the relevant laws and regulations. - Documenting and verifying all Signifi(￿nI related paty balan￿$ and transactions. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions. the less likely it is that we would become aware of nOn-￿mplIan¢e. Auditing Stsndards also limit the audit procedu￿$ requI￿d to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal ¢orrespondence, rf any. Mateiial misstatements that aris8 due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further d8SCriPtion of (yjr responsibilities is availabte on the Financial Reporting Council's website at: https:11 www.frc.org.uklauditorsresponsibilities. This description forms part of our auditorfs report. Use of our report This report is made solely to the charitable company's members, as a body. in accordance with Chapter 3 of Part 16 Df th& Companies Act 2006. Our audit work has been und8rtaken so that we might state to the Charital￿e company's members those matters are required to stste to them in an audIt￿'S report and for no other purpose. To the fullesl extent pemiitted 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. Susan Harrls MA ACA (Senior Statutory Audltor) For and on behalf of Champion Accountants LLP. Statutory Auditor Chartered Accountsnts 2nd Floor Refijge House 33-37 Watergate Row Chester CH12LE !i1..i..l.U- -23- ADFERIAD RECOVERY LIMITED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025 Unrestrided Restricted funds funds 2025 2025 Total Unrestrlcted Restri¢ted funds funds 2024 2024 Totsl 2025 2024 Notes Income from: Donations and legacies Charitable activities Community Services Residential Servitss 589.987 589,987 92.308 92.308 15,828.776 115,529 15.944.305 10,060,144 1,002,665 11.062,809 14.300,723 9,349.581 75,792 14,376,515 751.358 10.100,939 Investrnent income 174.015 174.015 159.292 159,292 Toial income 26,652.922 1.118,194 27.771.116 23.901.904 827,150 24,729,054 Expenditure on: Charitable activities Community Services Residential Services 16,059.398 10,176.628 155,Ot)) 16,214,398 871.155 11,047.783 13.951,423 9,035.417 95.220 14.046,643 668,036 9,703.453 Total charitable expenditure 26,236,026 1,026,155 27,262.181 22.986,840 763,256 23,750.096 Total expendlture 26,236,026 1,026,155 27.262,181 22,986,840 763,256 23,750,096 Net gainsl{losses} on investments 11 456,700 456.700 Net income 873.596 92,039 965,635 915.064 63,894 978,958 Transfers between funds (5.965) 5.965 Other recognised gains and losses: Actuarial losses on defined ben8frt pension schemes (60.000) (60.000) 11,000) (1,000) Net movement in funds 813,596 92.039 905,635 908,099 69,859 977,958 Reconcilialion of funds: Fund balances at 1 April 2024 8.490.645 1,787,393 10.278,038 7,582.546 1,717,534 9,300,080 Fund balances at 31 March 2025 9,304,241 1,879.432 11,183.673 8.490,645 1,787,393 10,278,038 -24- ADFERIAD RECOVERY LIMITED STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. -25- ADFERIAD RECOVERY LIMITED BALANCE SHEET AS Af 31 MARCH 2025 2025 2024 Notes Fixed assets Tangible assets Investment property Investments 13 14 15 6,848,493 995.000 7,374,592 7.843,495 7,374.594 Current assets Debtors Cash at bank and in hand 16 3.395,828 7.750,291 4.112,855 6,832,505 11,146,119 10,945,360 Creditors.. amounts falling due within one year 18 (6.639,710) {6,811,587) Net current assets 4,506.409 4,133,773 Total assets less current liabllltles 12.349.904 11.508,367 Creditors: amounls falling due after more than one year 19 (457,292) Provisions for liabilities (1,166.231) 1794,037) Net assets excluding pension (liability)Isurplus 11.183.673 10,257,038 Defined benefit pension (liabilityysurplus 21 21,000 Net assets 11,183,673 10,278.038 The funds of the charity Reslricted income ftjnds Unrestricted funds Pension reserve 1.879.432 9.304,241 1,787,393 8,469,645 21,000 11.183.673 10,278,038 The notes on pages 28 to 46 form part of these financial statements. 171glz£. The financial statements were approved by the trustees on ......................... Mr Clive Ed Trustee Wolfendale {Vice Chair) Company registration numbér 02751104 (England and Wales) -26- ADFERIAD RECOVERY LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 Notès Cash flows from operating activllles Cash generated from oparations 28 1.967.855 1,625,573 Investing actlvltles Purchase of tangible fixed assets Proc8eds from disposal of tangible fixed assets Investment income received (741,212) (572,593) 64,934 128,015 1,456.579 129.292 Net cash (used Inygenerated from investing activities {548,263) 1,013,278 Financing activities Repayment of borrowings (501.806) {581.068) Net cash used in financing activities 1501.806) (581,068) Net increase in cash and cash equlvalents 917.786 2,057,783 Cash and txsh equivalents at beginning of year 6.832.505 4,774,722 Cash and cash equivalents at end of year 7,750.291 6,832,505 -27- ADFERIAD RECOVERY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies Charity information Adferiad Recovery Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 36 Princes Drive. Colwyn Bay, Conwy. Li29 8LA. 1.1 Accounting Convention The financial statements have been prepared in accordance with ihe charity's governing document, the Companies Act 2008, FRS 102 'The Financial Reporting Stsndard applicable in the UK and Republic of Ir81and" ("FRS 102") and the Charities SORP 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). Tha charity is a Public Benefit Entity as defined by FRS 102. The financial ststements are prepared in steding. which is the functional currenGy of the charity. Monetary amounts In these financial statements a￿ rounded to the nearest £. The financial statements have been prepared under the historical cost convention, with the exceptb?n of investments which are included at market value. The principal accounting policies adopted are set out below. 1.2 Going concern The charitable companvs future is largely dependent on funding from the public sector, such as local authollties and govemment agencies. At the time of approving the financial ststements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for Ihe for&seeabl8 future. Thus the trustees continu8 to adopt Ihe going concem basis of accounting in preparing th8 financial slatements. 1.3 Charitable funds Unrestricted fiJnds are available ft)r use at the discretion of the trustees in fijrtherance of Iheir charitable objectives. Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. Further explanation of the nature and propose of each fund is induded in the notes to the accounts. 1.4 Income Incom8 from s8rvice lev81 agreements, grants. fees and rents" induding capital grants, is recognised once the charity has entitlement to the income, it is probable that the income will be received and the anount of income receivabl8 can be measured reliably except for. Wh8n it is specified that income from seNice level agreements and grants received by the charitable company are to be used in future periods. then Ihe income is defe￿ed unlil that period. When conditions are imposed which have to be fulfilled before the charitable company becomes entitl8d to use such income the income is deferred and not included in incoming resources until Ihe pre-conditions for use have been met. When specified income, inGluding capital grants. is for a particular restrirted purpose, which does not amount to pre-conditions regarding entitlemenL this income is included in incoming resources of restricted funds when receivable. Voluntary income is recognised as it is received unless it has a specific future purpose. -28- ADFERIAD RECOVERY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounting poli¢ies (Continued) Investment income Is Induded when receivable by the chartlable oJnpany. The trustees have considered the most appropriate tK)licy for investing fvnds and have invested in risk tree reserva accounts and other investments designed for the charity sector. 1.5 Expenditure Expenditure is racognised On￿ there is a lega or constructive obligalton to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in setdemen( and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accrual basis and has b8en dassified uTrJer headings that aggregate all cost related to the category. whe￿ costs cannot be diredly attriExJted to parttcular headings they have been allocated to activities on a basis consistent with th8 use of resourc8S. Expenditure is dassified by activity. The costs of each activty are made up of the totsl of dir&t costs and shared costs. induding support costs involved in undertaking each activity. Dir8Ct costs attributab18 to a singl8 actlvlty are allocated direcuy to that a￿vIty. Shared costs which contribute lo more Ihan one actlvity and support costs which are not attributable to a single &livity are apportioned between those actiVit￿S on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charg8s are allocaled on Ihe portion of the asset's Use. 1.6 Tanglble fixed assets Tangible fix8d assets are initially measured at cost arKI subsequ8nlly measur8d al cost or valuation. n8t of depreciation and any impaiment losses. Deprecialion is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Freehold land and buildings Offlce equipment Fixtures and fittings Motor vehicles 50 years - Straight line method 3 years - Straight line meth¢xI 10 year5 - Straight line method 4 years- Straight line method The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the ass8t, and is recognised in the statement of financial activities. 1.7 Investment property Investment propety, which is property held to eam rentals andlor for capital appreciation, is inttially recognised at cost, which indudes the purchase cost and any directly attributable expenditure. Sub*quently it is measured at fair value at the reporbng end date. The surplus or deficit on revaluation is reccgnised in profit or loss. 1.8 Flxed asset investments A subsidiary is an en￿ controlled by the charity. Control is tha power to govern thé financial and operating policies of the entity so as to obtain beneffts fr(xn its activilies. Subsidiaries are recognised at cost less impairment losses. -29- ADFERIAD RECOVERY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies (Continued) 1.9 Impalrment of flxed assets At each reporting end date. the charity reviews the carrying amounts of its tangible ass8ts to detemiine whether there 15 any indirAtion that those assets have suffered an impairment loss. If any such indration exists, tha recoverable amount of the asset is estimated in order to det8miine the extent of the impaiment 105s lif any). 1.10 Cash and cash equlvalents Cash and cash equivalents include cash in hand, deposits held at call with banks. other short-tem liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.11 Flnanclal Instruments The charity has elected to apply the provisions of Section 11 'Basic Finanaal Inslruments, and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charivs balance sheet when the diarity becomes party to the contr8Ctual provisions of the instrument. Financial assets and liabilities are offset. with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settse the liabilty simultaneously. Basic financial assets Basic financial assets: which include debtors and cash and bank balan￿s, are initially rneasu￿d at transaction price including transaction costs and are subsequently carried at amortised cosl using the effeclive interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the fvture receipts discounted at a market rate of interest. Financial assets classified as receivabl8 wthin one year are not amortised. Baslc financial liabilities Basic finanGial liabilities, including creditors and bank loan5 are initially recognised at transaction price unless the arrangement constitutes a financing transaction, wher& the debt instrument is measured at the P￿sent valu8 of the future payments discounted al a market rate of interest. Financial liabilities classified as p2yabla within one year are not amorknsed. Debt instruments are subsequently carried at amortised cosl, using the effective interest rate method. Trade creditors are obligakn'ons to pay for goods or service5 that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not. they are presented as non 286,000 Totsl costs 60,000 1,000 The amounts induded in the b￿an￿ sheet arising from the chartvs obligations in respect of defined benefit plans are as follows: 2025 2024 Liabilitiesl{assels}: Present value of defined benefit obligations Fair value of plan assets 2,857.000 3.257,000 (4.288.000) (4,217.000) Surplus in scheme (1,431,000) (960,000) Restriction on scheme assets 1,431.000 939,000 Total liabilityl{asset) recognised (21,000) 2025 Movements in the presant value of defjn8d bsnefil obligations Liabilities at 1 April 2024 Current seNice cost Benefits paid Contributions from scheme members Artuarial gains and losses Interest cost 3,257,000 13,000 {121,000) 3.000 1449,000) 154,000 At 31 March 2025 2,857.000 The defined benefit obligations arise from plans vthich are wholly or partly funded. -41 ADFERIAD RECOVERY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 21 Retirement benefit schemes (Continued) 2025 Movements in the fair value of plan assets Fair value of assets at 1 April 2024 Interest income Return on plan assets (excludin9 amounts induded in net interest) Benefits paid Contributions by the ernployer Gontributions by scheme members 4,217,000 200,000 (17.0001 1121,0001 6,000 3,000 At 31 March 2025 4,288,000 The actual return on plan assets was £183,0￿ {2024: £431,000). 2025 2024 Fair value of plan assets Privale Equity Real Estate Investment Funds and Unit Trusts Cash and Cash Equivalents 220,200 233,200 3.787,800 46,800 221,100 292,000 3,649.600 54,300 4,288,000 4,217,000 22 Restrlcted funds The restricted funds of the tharity comprise the unexpended balances of donations and grants held on trusl subject lo specific conditions by dowrs as to how they may be used. At 1 April 2024 Incoming Resources resources expended Transfers At 31 March 2025 Capital grants SMAT Funded Dawn Centre Community Funded Dawn Centre CAMRE Bursary FundlAPB WCADA Capital Grants Gamble Aware Residential Units 632.139 41.823 140.000 (15.089) {1.154) 757,050 40,669 132.012 125,263 856.156 (4,811) (20,124) (18.769) 127,201 105,139 837,387 978,194 (966.208) 11.986 1.787.393 1.118.194 (1.026.155) 1,879.432 -42- ADFERIAD RECOVERY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Restricted funds Icontlnued) Previous year: At 1 April 2023 Incorning resources Resources expended Transfers At 31 March 2024 Capital grants SMAT Funded Dawn Centre Community Funded Dawn Centre CAMRE Bursary FundlAPB WCADA Capital Grants Gamble Aware Residential Units 415,849 42.977 121.000 {12.944) {2.308) 523,905 41,823 1.154 136.823 138.726 874.925 (9,622) (13.463) (18.769) 4,811 132,012 125,263 856,156 706.150 (706,150} 2.133,383 827.150 (763,256) 5,965 2,203,242 Purposes of Ihe Restrided Fund itsl Grants Capitsl grants are grants reoeNed for the purposes of restrict8d capital expenditure. The fund is b8ing reduced by an annual depreciation charge. The Big Lottery's Community Fund. financed the refurbishment of the DAWN Centre, Colwyn Bay during 2001102. The 10 year evaluation has been completed. The fund is being reduced by an annual d8pr8ciation charge on the r8furbishment cost. Conwy SMAT funded an extension to the Dawn Centre and much needed repair work to the basement - which was completed in June 2010. This fund is being reduced by an annual depr8ciation charge. Camr The North Wales Probation fund was received in March 2003 for th8 fulure benefit of Probation clients. From this, a bursary scheme for ex-offender clients was created in 2009. The scheme aims to provide fvnding for accessing training and education. Since commencement th8 fund has disbursed approximately £210.000 to Clients seeking assistance. Funds r8C8ived from Wdsh Govemment lo WCADA for purchase of charity p￿miseS and propety lease. Depreciation is charged against this fund on an annual basis. Funds were re￿IVed for the purposes of providing residential rehabilitation for those with gamblkng related harms. Certain properties owned by the charity are subject to a lien in favour of the Welsh Ministers shauld the property be sold. -43- ADFERIAD RECOVERY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 23 Unrestricted funds The unrestricted funds of the charity comprise the unexpended balan(XS Df donations and grants which are not subject to specific Conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes. At 1 Aprll 2024 Incoming resources Resources expended Transfers Gains and At 31 March losses 2025 General funds Pension fund 8.469.645 21,000 26,652,922 {26.275.026) 39,000 456,700 (60,000) 9,304,241 8,490,645 26,652,922 (26,236.026) 396,700 9,304,241 Previous year: At 1 Aprfl 2023 Incoming rosourcos Resources •xpended Transfers Gains and At 31 March losses 2024 General funds Pension fvnd 7,582,546 23,901,904 (23,008,840) 22,000 (5,9651 8,469.645 21.000 <1,000) 7.582,546 23.901,904 (22.986.840) (5.965) {1,000) 8.490,645 24 Analysis of net assets between fund5 Unrestricted funds 2025 Restricted funds 2025 Totsl 2025 At 31 March 2025: Tangible assets Investment properties Investments Current assetsl{liabilities} Provisions and pensions 5.074.200 995,OCIO 1.774,293 6.848,493 995,000 4.401,270 {1.166,231) 105,139 4,506,409 {1,166,231) 9.304.241 1,879,432 11.183,673 ADFERIAD RECOVERY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 24 Analysls of net assets between funds (Contlnued) Unrestrlcted fvnds 2024 Restricted funds 2024 Total 2024 At 31 March 2024: Tangible assets Investments Current assetsl(liabilities) Long lami liabilities Provisions and pensions 5,712,462 1,662,130 7,374,592 4,008.510 (457.292) (773.037) 125,263 4,133,773 (457,292) (773.037) 8.490,645 1.787.393 10,278.038 25 Operating lease commitments Lessee At the reportlng end date the charity had outstsnding ¢ornmrfments for future minimum lease payments under non-cancellable operating leases. which fall due as follows.. 202S 2024 Within one year Between two and five years 295,020 990,363 255,089 920,917 1,285.383 1.176,006 26 Related party transactions Transactions wlth related partles During the year the charity entered into the following transactLins wtth related parties: Sale of goods 2025 Purchas8 of goods 2025 2024 2024 CAIS Social Enterprises Ltd 251.607 225.722 66.434 40,977 251.607 225,722 66.434 40,977 The net trading balance du8 from CAIS Social Enterprises Ltd at the end of the year was £74,412 (2024: £146.357). In addition, a historic balance of £70,017 (2024: 70,017), due from CAIS Social Enterprises Ltd is repayable on demand. However. the balance is not expected to be repaid within 12 months. During the year, the charity entered into transactions with anothef entty. a r8lated paty by virtue of having trustees in common. There was expenditure paid of £240 in the year (2024: £Nil). -45- ADFERIAD RECOVERY LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 27 Subsidiaries These financial statements are separate charity financtal statements f(￿ Adferiad Recovery Limited. Details of the charitys subsidiaries at 31 Marth 2025 are as follows: Name of undertaking Registered office Nature of business Class of .￿ Held shares held Dir8Ct Indirect CAIS Social Enterprtses Ltd The Jigsaw Organisation Lld Ein Cyfie CIO Hafal WCADA Diverse Excellence Cymnj Trading subsidiary Dormanl company Donnant company Domiant company Dormant company Trading subsidiary Ordinary Ordinary Ordinary Ordinary Ordinary Ordinary 100.00 100.00 100.00 100.00 100.00 100.00 28 Cash generaled from operations 2025 2024 Surplus for the year 965,635 978,958 Adjustments for Investment income re¢ognised in statement of financial activities Lossl(gain) on disposal Df tangible fixed assets Fair value gains and losses on investment properties Depreciation and impaiment oftsngible fixed assets Difference between pension charge and cash contributions {128,015) 285,782 {456,700) 378,295 (39.000) (129,292) (282,581) 331,534 {22,000) Movements in working capital: Decrease in debtor5 (Decreasellincrease in creditors (Decreasellincrease in provisions 717,027 (127,363) 372.194 123,355 779,562 (153,963) Cash generated from operations 1.967,855 1.625,573 29 Analysls of changes In net funds At 1 April 2024 Cash fiowsAt 31 March 2025 Cash at bank and in hand 6.832,505 917,786 7,750,291 Loans falling due within one year Loans falling due after more than one year (158,000) (457,292) 44.514 457.292 (113,486) 6,217.213 1,419,592 7,636,805