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← Demelza Hospice Care For Children

2025-03-31-accounts

Demelza Hospice Care for Children Annual report and financial statements for the period ended 31 March 2025 Registered Charity Number 1039651 Company Number 02948500

Contents

Contents
Introduction from CEO 3
We are Demelza 4
Achievements and Performance 7
Strategic report 8
Trustees’ report 8
Charitable Objects 8
Fundraising and Lottery 10
Compliance with fundraising regulations 10
Section 172 (1) statement 10
Diversity and Inclusion 13
Financial Review 14
Risks 16
Investments 18
Part 2
Political and charity donations
SECR		 18
18
Statement of responsibilities 21
Review of quality
Independent auditors’ report
22
performance
Financial Statements
Notes to the Statements		 25
28
in 2022/23
Structure, governance and management		 48
Corporate Information 50

2 Demelza annual report and financial statements

Introduction from our CEO

With three years of our five-year strategy completed, we have much to celebrate in the achievement of our objectives.

The need for children’s palliative care that is increasingly complex is rising. We have been working on a project to transform the way our care is delivered, ensuring we support families when and where it is needed most. We have broadened the range of services offered and will keep the constantly changing needs of children and their families under review. We have extended services in areas of increased demand, for example bereavement, neonates (children under 28 days) and transition (young people 18-25 years). Training for our nursing and care and family support teams to meet the increased competence and specialism required has been integral to all services.

To support care delivery, we have continued with our digital transformation journey, supporting us to make data-driven decisions, overhaul our IT infrastructure, reduce manual entry and automate processes, and implement systems that help us to be more effective. An important aspect to everyone at Demelza is how we engage, listen to and act upon feedback from children and their families. Children and their families are warmly encouraged to do this in accessible and flexible ways, and this information helps set our direction now and in the future.

this completed, three colleagues are now accessing their nurse apprenticeship to enter the Nursing and Midwifery Council Register as children’s nurses. Providing a workplace that supports inclusivity, promotes psychosocial safety and welcomes the huge wealth and richness that diversity brings is key at Demelza. This year we have achieved our silver accreditation for FREDIE (fairness, respect, equality, diversity, inclusion and engagement) with the National Centre for Diversity.

Collaborative working is another important theme. Demelza works with many other hospices, charities, and other partners to share best practice, avoid duplication and signpost families for a seamless service providing the care and support they need.

I am deeply grateful for the generosity of deed and of spirit of our donors, supporters, trustees, employees, volunteers, suppliers and all our partners who work with us to provide vital support to the children and families we serve.

We cannot deliver care without the right people. With an international shortage of registered children’s nurses, Demelza has invested in offering the opportunity for existing colleagues to train as nursing associates. With

Lavinia Jarrett Chief Executive Officer

Demelza annual report and financial statements 3

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We are Demelza

Demelza delivers extraordinary care to extraordinary children who are facing serious or life-limiting conditions, throughout Kent, South East London and East Sussex.

Demelza is here to support them and their families at every step – from first diagnosis and for as long as we’re needed.

And when we’re needed most, Demelza is here, by their side when they feel isolated, helping to celebrate the joy in family life and making precious memories during challenging times.

We support families when and where we’re needed most: at our three core sites, in their homes, in local communities and online.

Vision

To see a world where children and young people with serious or life-limiting conditions, and their families, have access to personalised, expert care enabling them to live the best lives they can.

Mission

To deliver care that doesn’t back down to children and young people with serious or life-limiting conditions, and their families, across Kent, South East London and East Sussex – from first diagnosis and for as long as we’re needed.

With two residential hospices in Kent and South East London and a community hub in East Sussex, we go beyond providing outstanding care and emotional support. We help children explore their creativity, have fun and make memories.

Our support is as unique as every child and family and personalised to adapt around their specific circumstances: from creative therapies and short breaks to practical and emotional support for families and siblings, alongside expert clinical and end of life care. Our specialist teams are on hand day and night, all year round.

4 Demelza annual report and financial statements

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Our Values

Fiercely committed to quality

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Fiercely
committed
to quality
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The families and children we help, and our supporters, deserve nothing but excellence. Each one of us has a vital role to play in providing unique care and support, and we always strive to deliver outstanding service. By working together, we can give even more families a chance to enjoy their time making precious memories. We recognise everyone brings a different perspective and we celebrate all forms of diversity.

Passion Performance and Pride

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Passion,
performance
& pride
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Passion, performance and pride – it’s how we get the best from each other and deliver exceptional care and support. We love what we do. It’s the most rewarding job in the world. We feel privileged to care and support children and their families. We are proud to be part of an inclusive team.

Human is our nature

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Human is
our nature
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We see every person as a unique individual. We give every child and family member a service that suits their individual needs. We’re all human beings, and through empathy and understanding, we can provide essential care as unique as the person who receives it. All our differences are respected and valued which makes us stronger. We value and respect everyone who is part of our story.

Always honest, always authentic

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Always
honest, always
authentic
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We are clear, open and honest because we value everyone and their unique insight. We always look for the best solution. We exist to give outstanding care and support to children and their families.

Innovate, develop & improve

Innovate, develop & improve

Each member of Demelza is driven to do better. Through evidence, insight and experience, we strive to develop and improve to give children and families outstanding care and support. We always look for ways to transform change into opportunity and growth. We actively seek and welcome representation from all diverse and minority groups.

Demelza annual report and financial statements 5

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Our achievements and performance We are now over halfway through our five-year strategy, and over the last year we have continued to see successes across the organisation.

Our transition service has also continued to grow, ensuring all young people from the age of 14 are supported, which continues up until their 25th birthday.

Fundraising had a record-breaking year for income, including our highest ever performing Christmas appeal outside of COVID-19. We have embarked on a significant sustainability project across our hospices to ensure they are compliant, safe and future-proof, and our nurse recruitment campaigns have seen us increase our nursing workforce by 30%, ensuring we can continue to deliver extraordinary care to extraordinary children.

As children continue to live longer with increasingly complex medical and social needs, we are adapting our services to ensure we can meet that need. Over the last year, our family support teams have extended our programme of events to each location (Kent, South East London and East Sussex) to ensure they are easily accessible for families within their local communities. To complement this, our psychosocial teams have provided bespoke and group support in a range of settings that work for children and families.

And we continue our in-reach work within local and tertiary hospitals to help increase referrals whilst breaking down the barriers the word ‘hospice’ creates for many families. Providing care when and where it is needed continues to be a priority, whether it is within our hospices, family home, local community and online.

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We supported 842 children with serious or life limiting conditions and their families

We provided 306 overnight short breaks

We provided 70 specialist clinical end of life, step down and symptom management sessions

We welcomed 166 new families onto our caseload

We provided 1,521 short break sessions within our community

We provided 5,040 volunteer driving hours, including taking families to hospital appointments

We provided siblings with 33 special events

We provided 642 counselling sessions to children and family members

The hydro pool was used 382 times

We provided 365 music therapy sessions

We provided 570 day care sessions

Demelza annual report and financial statements 7

Strategic report

Trustees report

The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of Demelza Hospice Care for Children (the company) for 12 months ending on 31 March 2025. The annual report includes both Trustees’ report for the purposes of charity law, and the directors’ report and strategic report for the purposes of company law. This report includes pages 1 to 13 and pages 48 to 50.

The Trustees confirm that the annual report and financial statements of the company comply with the current statutory requirements, the requirements of company’s governing document and the provisions of the Statement of Recommended Practice (SORP) Account and Reporting by Charities, FRS102 and SORP 2015.

Charitable Objects

The memorandum and articles of association sets out the main charitable object:

The charity’s objects (Objects) are to promote the relief of illness and suffering in such ways as the charity shall from time to time think fit, and in particular in the counties of Kent, East Sussex, part of Surrey and South London, and in particular (but without prejudice to the generality whether geographical or otherwise of such object):

(1) by establishing, maintaining and conducting residential nursing and convalescent homes for the reception and care of young persons of either sex, and whether or not a member of the charity (without regard to race or creed) who are suffering

from any chronic or terminal illness, or from any other physical or mental infirmity, disability or disease and for the reception and care of the members of the family of such persons whether adult or otherwise, and so that any such home may be restricted to patients (and the families of patients) of under a certain age limit or of one sex only or (whether or not so restricted as aforesaid) to patients suffering from any particular type or types of illness, disability, disease or infirmity, and by providing medical or other treatment or attention for any such persons and their families in their own homes;

(2) by conducting or promoting or encouraging research into the care and treatment of persons suffering from any such illness, disability, disease or infirmity as previously mentioned and particularly into the care and treatment of persons suffering from terminal illness and the care of the families of such persons and by providing for the dissemination of the results of such research;

(3) by promoting or encouraging or assisting in the teaching or training of doctors, nurses, physiotherapists, administrators, social workers and other persons engaged in any branch of medicine, surgery, nursing or allied services, and in the teaching or training of students in any branch of medicine, surgery, nursing or allied services;

(4) by providing or assisting or encouraging the provision of spiritual help and guidance for any person’s resident (either as patients or as families of such persons or otherwise) or associated in any way with any such home or homes as aforesaid.

8 Demelza annual report and financial statements

Demelza annual report and financial statements 9

Fundraising and Lottery

Despite the continued challenging economic climate, this year we have exceeded our income budgets. Including legacies, gross income was £7,725k – this is £1,220k ahead of budget.

Every income stream overperformed apart from regional fundraising and special events, which fell behind their individual budgets. Trusts and foundations had an exceptional year, namely because of a long-standing trust winding up and donating £470k of its residue to Demelza.

We are aware that the upcoming year will be incredibly challenging and the fundraising team must remain agile with multiple income streams to ensure we can continue to grow income to support our strategic objectives.

Lottery continued with consistent income during the 2024 calendar year. Lottery income was £1,875k and represents 73% of the total proceeds after the deduction of prizes and expenses.

charity for the benefit of its beneficiaries, having regard to the stakeholders and matters set out in Section 172(1) of the Companies Act 2006.

Section 172 considerations are embedded in decision-making at board level and throughout the group. Issues, factors and stakeholders which the directors have considered when discharging their duty under section 172(1) are detailed on pages 1 to 13 and pages 48 to 50 and throughout this Annual Report.

Our vision and mission statement are set out on pages 4 to 5 of this report. Our achievements, performance and future plans are described in the strategic report (pages 8 to 19) as are the risks facing our organisation and the mitigating actions we plan to take. Our environmental performance, and information about our engagement with employees is also included in this strategic report. The section on structure, governance and management (pages 48 to 50) contains information about the governance of the organisation.

Compliance with fundraising regulations

The charity undertakes fundraising activity by applying to and partnering with companies and grant-giving trusts, direct mailings, appeals, organising events and via the support of volunteers’ fundraising in the community. Our fundraising activities are carried out in line with the Fundraising Code of Practice set by the fundraising regulator. Our fundraising promise is available on our website.

Charity supporters registered on the telephone preference service would only be called with an appeal if they have agreed to receive such calls. Callers are thoroughly trained and updated on the charity’s work and calls are regularly monitored. Demelza received four complaints (2024:13) about fundraising activity in the reporting period. This significant decrease shows the work and processes we have introduced around thanking, stewardship and communication are having a significant impact on the experience of supporters and donors.

Section 172 (1) statement

The Trustees and directors of Demelza Hospice Care for Children have acted in accordance with their duties codified in law, which include their duty to act in the way in which they consider, in good faith, would be most likely to promote the success of the

10 Demelza annual report and financial statements

S172(1) (b) ‘The interests of the company’s employees’

Employee Relations

The Board recognises that Demelza employees are our most important asset and are fundamental to the delivery of our strategic ambitions. Our success depends on attracting, retaining, motivating and developing them, whatever role they undertake.

An employee engagement platform, WinningTemp, was introduced in 2024/25 to replace the annual staff survey. Through short, fortnightly surveys line managers receive anonymised feedback from their team, enabling them to understand how employees are feeling and respond to matters directly. Comprehensive reports are available quarterly at the People and Resources Trustee Committee and annually to Trustee Board to measure employee engagement, motivation and commitment to Demelza. It enables the Trustees to understand how we are learning from feedback to strengthen Demelza’s culture and values, and informs decision-making, from pay and benefits to health, safety and wellbeing.

Disabled Employees – we are committed to equality, diversity and inclusion in the recruitment, training, promotion and career development of people living with a disability. Demelza aims to ensure that people with disabilities are given equal opportunity to obtain employment. In doing so, we will fully consider making reasonable adjustments to working practices, equipment and premises to ensure that a person living with a disability is not put at a substantial disadvantage due to their disability.

S172(1) (c) ‘The need to foster the company’s business relationships with suppliers, customers and others’

Demelza’s key business relationships are with the NHS and other healthcare partners, our suppliers and our donors and supporters. This is not an exhaustive list – other key stakeholders include HMRC and the Charity Commission. To deliver our mission and strategy, we need to work with others. We are committed to prompt payment of invoices within agreed payment terms. The importance we attach to building relationships with our committed, generous donors and supporters is affirmed on page 14.

S172(1) (d) ‘The impact of the company’s operations on the community and the environment’

We are committed to reducing our carbon footprint by 2030 and we plan to create the strategy to reduce emissions over the next five years. We continue to aim for carbon neutrality in line with government targets.

S172(1) (e) ‘The desirability of the company maintaining a reputation for high standards of business conduct’

It is crucial that Demelza maintains its reputation for high standards of conduct. We remain committed to financial and risk management, compliance, safeguarding and good governance. We are committed to a focus on the charity’s impact.

S172(1) (f) ‘The need to act fairly as between members of the company’

It is not relevant to Demelza’s organisational structure, as the charity is run in the interests of its charitable objects and its beneficiaries rather than in the interests of its members.

Should employees become disabled in the course of their employment, every effort will be made through reasonable adjustment, retraining or redeployment to enable them to remain in employment.

If an employee or a candidate feels that they have been unfairly discriminated against, they may raise a complaint under Demelza’s Complaints Policy.

Demelza annual report and financial statements 11

Freedom to Speak Up

In June 2024, we launched our Freedom to Speak Up initiative, to support the strategic plan to develop a listening culture at Demelza. This is part of our wider MyVoice initiatives, which provide colleagues with a range of options to share their feedback and promote psychological safety in all Demelza workplaces. Demelza works with our Freedom to

Speak Up Guardian to explore all cases and act on all concerns. Any themes identified or actions taken are reported to Trustees through our People and Resources Committee, and an annual review is presented by the Freedom to Speak Up Guardian to the full Board of Trustees.

Category
 April 24-June 24 July 24-Sept 24 Oct 24-Dec 24 Jan 25-Mar 25
Leadership/
Management		 1
Wellbeing 1
Ways of
Working/Process
or procedure		 1
Discrimination/
Bullying		 1

All feedback received in the year ending 31st March 2025 has been appropriately reviewed, acted on as necessary and responses fed back to those speaking up.

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Diversity and Inclusion (FREDIE – Fairness, Respect, Equality, Diversity, Inclusion, Engagement)

We continually strive to improve our approach to equality, diversity and inclusion at Demelza. The FREDIE and Wellbeing Steering Group guides and leads Demelza with equality, diversity and inclusion and support initiatives to ensure that Demelza creates an inclusive and engaged culture. This is to ensure that:

FREDIE is recognised within Investors in Diversity as a way of implementing and embedding change and engagement from employees and volunteers to create a natural environment for an inclusive culture to flourish. To create an inclusive culture, you must build on the solid values of FREDIE.

We have continued to progress on our longterm work to create an inclusive workplace. In recognition of this we were awarded the Silver Investors in Diversity Accreditation in October 2024 and were ranked as 60 in the top 100 inclusive employers Index of the National Centre for Diversity 2024.

To further embed FREDIE initiatives and principles, in 2024/25 we:

As our FREDIE journey has progressed, we have identified key changes in our approach and moved the FREDIE work under our People Directorate. The FREDIE and Wellbeing Steering Group has been restructured to a smaller group that will oversee and monitor progress on inclusion initiatives.

Under this group sit FREDIE Delivery Groups with participation drawn from across Demelza on key priority areas. Inclusion priorities have initially been identified through feedback from our Investors in Diversity survey results. Going forward these will be identified and encouraged through various routes, including MyVoice and Family Networks.

Demelza annual report and financial statements 13

Financial review

Income

Income in 2024-25 continued to grow, with a total operational income of £17,335k (2024: £17,260k – which included the donation of Hill Farm, our purpose-built facility on the Kent site. This asset was capitalised at a value of £1,379k and is being depreciated accordingly. However, the accounts must show corresponding income as a gift in kind.)

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1% 1%
19%
24%
11%
28%
16%
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Retail
Fundraising
Statutory
Lottery
Legacies
Investments
Other
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Donations totalled £3,302k in the year ending April 2025 (2024: £3,522k). Fundraising income remained particularly strong from Philanthropists and Corporate Partners.

Legacy income was £3,245k (2024: £2,150k).

Retail income was £4,186k (2024: £4,369k). During March 2024, the distribution centre and warehouse shop in Maidstone closed due to the site being sold by the owners for redevelopment and a new location in Larkfield opened. Additionally, two other shops closed permanently (due to the buildings no longer being a viable option for Demelza) and one other shop was temporarily closed due to a flood. These are the main causes of the dip in income.

Fundraising events raised £683k (2024: £526k).

Statutory funding from ICBs and Local authorities was £2,824k (2024: £2,423k). There was an increase in the annual Children’s Hospice Grant (now received via ICBs) to £1,710k (2024: £1,668k) while other funding from the NHS and Local Authorities grew to £1,114k (2024: £755k). The cause of the large increase here was primarily from funding for one child who was resident at Demelza for a number of months. This is rare and the income is expected to reduce again in 2025-26.

Grants from charitable trusts and foundations totalled £791k (2024: £315k). The increase was mainly due to a large, final grant of £470k from a Trust that has supported Demelza for a number of years which has now closed.

Lottery income was steady at £1,868k (2024: £1,848k).

14 Demelza annual report and financial statements

Expenditure

Expenditure was £18,567k in 2024-25 (2024: £17,969k). Demelza must remain competitive in the employment market to attract and retain the right staff. The real living wage is paid, as a minimum, across the organisation and in 202425 this represented an increase to our lowest paid staff of 10% from 2023-24.

  1. The value of the ACG assets reported in the consolidated accounts was reduced by £1,556k due to the sale of the properties.

  2. £1,200k of unrestricted expenditure was made in 24-25 from the Care and Resources Strategy Fund. This was the continuation of expenditure on elements of Care and Resources strategy.

The cost of providing care was £10,923k (2024: £10,544k), an increase of 4%. Nursing recruitment improved in the year, but vacancies remained, particularly in South East London.

The cost of generating funds was £7,644k (2024: £7,425k), an increase of 3%. Fundraising costs were £2,079k (2024: £2,153k) with a slight reduction due to vacancies. Retail expenditure increased to £4,481k (2024: £4,241k) this was mainly due to inflationary pay increases and costs incurred in closing and moving shops. Lottery costs increased marginally to £785k (2024: £746k) this is mainly due to a project to re-engage with lottery players. The cost of maintaining and letting the properties owned by the subsidiary, ACG Lettings Ltd, increased to £198k (2024: £186k) due to increased legal fees incurred as a result of the sale of 8 properties.

Reserves

Our reserves policy states that to ensure the sustainability of our service for those who need it most, we hold between 6.5 and 10.5 months of running costs in free reserves. On 31 March 2025 we held 7.4 months (or £11,971k) of free reserves (2024: 6.99 months or £10,959k). The increase in free reserves between March 2024 and March 2025 was £1,012k. The main factors in the movement of the free reserves were:

  1. The operational deficit was £1,616k better than planned.

  2. The gain on investments of £371k are included in the unrestricted reserves total.

Demelza annual report and financial statements 15

Risks

Principal Strategic Risks and Mitigations

The senior leadership team and Trustees regularly review organisational risks and how to negate or mitigate them as much as possible. The Trustees have assessed that the main strategic risks have been:

Strategic Risk
 Actioned Mitigations Further Planned Mitigations
Number of • New Circles of Care project • Implementation of new DBS
appropriately launched to review Demelza’s management solution.
skilled employees service model and identify • Overseas recruitment for
and volunteers clinical pathways for access to nursing colleagues further
services. explored as an opportunity.
• Review of services at Demelza • Recruitment of medical role to
South East London in response to support nursing led team with
nursing shortage, to safeguard medicines management and
services for end of life and prescribing developments.
urgent care and wellbeing of
employees.
• Salaries to be aligned to the
sector benchmark, where
possible.
• Introduction of Professionals
Days to raise awareness of the
work of Demelza.
• Workforce Strategy continues
to offer career opportunities to
increase number of employed
nurses by 10%.
• New employee engagement
platform implemented.
Statutory funding • Proactive engagement with local • Continued engagement
for children’s MPs to lobby Government for with local MPs and
hospices sustainable funding. Integrated Care Boards to
• Engagement with Integrated strengthen relationships
Care Boards (ICBs) for and understanding around
sustainable funding and raise children’s hospices and
awareness of responsibilities to statutory obligations to
children’s hospices. provide services.
• Attendance and visibility at • Continued collaborative
All Party Parliamentary Group working on national
meetings to raise awareness of messages with Together for
hospice care and sustainable Short Lives and Hospice UK.
funding. • Continue communication
with different stakeholder
groups about long term
sustainable funding needs.

16 Demelza annual report and financial statements

Strategic Risk
 Actioned Mitigations Further Planned Mitigations
Statutory funding • Working in collaboration with
for children’s Hospice UK and Together
hospices for Short Lives to lobby the
(continued) government for increased
funding for hospices.
Infation and cost
of living crisis		 • Increase in applications for
statutory funding for services.		 • Strategic scenario planning
for any necessary reduction
including income • Statutory funding strategy in services, should ICBs not
downturn developed. be able to offer a sustainable
• Plans to campaign local MPs to fnancial contribution.
raise awareness of Demelza’s • Undertake planned
services. programmes of work to
• Detailed fnancial scenario streamline services and
planning and three-year budget resources, and to build
projections. effciencies and capacity.
• Cost of living pay award of a
minimum of 3% in April 25 to all
employees.
Information • Renewed Cyber Essentials • Annual renewal of Cyber
governance, and Cyber Essentials Plus Essentials Accreditation.
including cyber accreditation gained. • Ongoing review of data
security • Working with independent virtual retention and reduction of
data protection offcer for routine records stored.
expert advice. • Data protection built out into
• Cyber security an inherent strand digital platform, so ease of
of all digital transformation access, management and
projects. ongoing review.
• New supplier identifed to
undertake network penetration
testing to ensure resiliency of IT
infrastructure.
• Phishing simulation undertaken
at regular intervals, with
educational resources provided.
• New data and intelligence
steering group forms to develop
and share data expertise across
the organisation.
Fire safety at Kent
hospice reviewed
and brought
up to required
standards		 • Full audit of Kent Hospice site
completed, in collaboration with
Kent Fire and Rescue, with action
plan identifed.
• Ongoing programme of works to		 • Development of business
continuity policy and plan.
• Future proofng of building for
changes of use.
assure future compliance.
• Business continuity simulation
completed.

Demelza annual report and financial statements 17

Investments

Demelza’s investment portfolio is now managed by Sarasins. Brewin Dolphin acted as Demelza’s investment managers for the first part of the year. The transfer to Sarasins (following a retendering process in the later part of 2023) took place over several months starting in May 2024 and completing in October 2024. Our primary aim from investments is to achieve sustainable capital growth within a balanced risk environment. Ultimately these funds will form our free reserves and provide a safety net to ensure the continued provision of the charity’s core services. The primary objective is to generate a total return of 2% above the rate of inflation as measured by CPI on a 5-year rolling basis.

As set out in the financial notes on page 39; we held £11,294k at the start of the year. Dividends and interest of £220k were received during the year and withdrawals of £500k were made. There was an unrealised gain of £371k in the year and the fees charged by our investment manager for the period were £52k. The value of investments at the end of the year was £11,333k.

Political and charity donations

Demelza is a registered charity and the whole of its payments are applied to charitable purposes as detailed in the accounts. No specific contributions to other charities were made in the period nor were any political contributions made.

SECR

Greenhouse Gas emissions and energy consumption

Intensity ratio

It was decided to use total £m turnover as our metric. The resulting intensity ratio of tCO2e per total £m turnover will best reflect changes in operation and energy consumption over time.

18 Demelza annual report and financial statements

Energy and Carbon Year on Year Comparison

Efficiency narrative

We have a policy of recording and reviewing all energy use and investigating unexplained anomalies.

We have completed initiatives within our premises to limit lighting use by PIRs and use of LED fittings. The electric charging point is in regular use.

The Energy Savings Opportunity Scheme (ESOS) is complete and a programme of measures drawn up for implementation up to 2027. These include relocation of our distribution centre, heat recovery system at Demelza Kent and a continued switch to electric vehicles.

Quantification and Reporting Methodology

The methodology we have used is The GHG Protocol Corporate Accounting and Reporting Standard. We have followed the 2013 UK Government Environmental Reporting Guidelines (updated March 2019).

We have used the 2024 UK Government’s Conversion Factors for Company Reporting.

The energy efficiency narrative methodology is based on energy management best practice.

Demelza annual report and financial statements 19

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Statement of responsibilities

The Trustees are responsible for preparing the Trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the

financial statements comply with the Charities Act 2011, applicable accounting regulations and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Disclosure of information to auditor

The Trustees who held office at the date of approval of this Trustees’ Report confirm that, so far as they are aware, there is no relevant audit information of which the company’s auditors are unaware, and each Trustee has taken all the steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

This report, incorporating the Strategic Report, was approved by the Trustees, in their capacity as Company Directors, on 2 October 2025 and signed on its behalf by

Air Marshal Sean Reynolds CB CBE DFC, Chair of Trustees

Demelza annual report and financial statements 21

Independent auditors report

Opinion

We have audited the financial statements of Demelza Hospice Care for Children (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2025 which comprise the consolidated statement of financial activities, group balance sheet, charity balance sheet, consolidated cash flow statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group or the parent charitable company’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

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

Other information

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

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

We have nothing to report in this regard.

Other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken during the audit:

22 Demelza annual report and financial statements

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report and Strategic Report.

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ Responsibilities set out on page 21, the Trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the group and the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.

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

Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these can detect irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities

We assessed the susceptibility of the group and parent charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with management and Trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent charitable company by discussions with Trustees and updating our understanding of the sectors in which the group and parent charitable company operate.

Laws and regulations of direct significance in the context of the group and parent charitable company include The Companies Act 2006 and guidance issued by the Charity Commission for England and Wales.

Further the group is subject to other laws and regulations where the consequences of noncompliance could have a material effect on

Demelza annual report and financial statements 23

amounts or disclosures in the financial statements, through significant fine, litigation or restrictions on the group’s operations. We identified the most significant laws and regulations to be those issued by the Care Quality Commission covering health care services and those issued by the Gambling Commission covering requirements for running a lottery.

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the parent charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected, or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws, regulations, and fraud.

reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the parent charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent charitable company and the parent charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

………………………...................…………………………...................………………………….............................

Cara Turtington (Senior Statutory Auditor) for and on behalf of Saffery LLP

Statutory Auditors

71 Queen Victoria Street London EC4V 4BE

13 October 2025 Date ………………………...................…………………………...................…………………………...............

Saffery LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions

24 Demelza annual report and financial statements

Financial Statements

Consolidated Statement of Financial Activities for the year ended 31 March 2025

All the activities of the Group and the Charity are continuing. There are no other recognised gains or losses. Full comparative figures for the period ended 31st March 2024 are shown in note 28. The notes on pages 28-47 form part of these financial statements.

Demelza annual report and financial statements 25

Demelza Hospice Care for Children

Balance Sheet at 31 March 2025

Company No: 02948500

Note 2025 2024
£000 £000
NetCash Inflowfrom Resources 21 (625) (174)
Cashflowsfrom Investing activities
Purchase of property, plantand machinery (671) (938)
Proceeds from the Sale of Fixed Assets 7 17
Purchase ofintangiblefixed assets (72) 0
Purchase ofinvestments in theyear 0 0
Proceeds from saleofinvestments 500 0
Proceedsfrom sale ofinvestment properties 1,381 0
Netcash provided by(used in)financing activities 1,145 (921)
Change in cash and cash equivalents inthe reporting 22 520 (1,095)
Period
Cash and cash equivalents at 1stApril 2024 1,532 2,627
Cashandcashequivalentsat31stMarch2025 2,052 1,532

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

Note 1. Accounting Policies

Statement of compliance

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS102 second edition)) and the Financial Reporting Standard applicable in the United Kingdom and republic of Ireland (FRS 102) and the Charities Act 2011. Demelza Hospice Care for Children meets the definition of a public benefit entity under FRS 102. The functional currency is £ Sterling.

General information

The Charity is a company limited by guarantee, incorporated in England and Wales (company number 2948500) and a charity registered in England and Wales (charity number: 1039651). The Charity’s registered office address is: Rook Lane, Bobbing, Sittingbourne, Kent, ME9 8DZ.

Basis of consolidation

These financial statements consolidate the results, assets and liabilities of the charity’s trading subsidiary Demelza Trading Ltd (company number: 03090528) and ACG Lettings Ltd (company number: 03031999 on a line-by-line basis.

Going concern

The Trustees have reviewed Demelza Hospice Care for Children’s financial position, considering the impact of future activities, and concluded that it is appropriate to produce the accounts on a going concern basis for the 12 months from the date the accounts are signed.

A summary of the accounting policies, which have been consistently applied, is set out below.

Significant judgements and estimates

The key sources of uncertainty in our estimations that have a significant effect on the amounts recognised in the financial statements are described in the accounting policies and are

summarised below:

residuary legacies – the charity recognises residuary legacies once probate has been granted, which therefore requires an estimation of the amount receivable.

Accounting for income

Income received by way of donations, collecting boxes or from functions, shops or flag days is not recorded in the financial statements until the cash, or document of title to the investment or property is received at headquarters. Legacy income is recognised in the SOFA when receipt is probable, amounts receivable can be measured with sufficient reliability and the charity is entitled to the income.

No account is taken of monies or other assets in the hands of outside or voluntary helpers until such monies are banked or other assets are remitted to headquarters. Contracted fees receivable and grants invoiced to local authorities, as well as investment income and accrued tax recoverable, are accrued. Other grants from central government and local authorities are recorded in the financial statements when they are receivable.

Contracted fee income specifically received in advance of expenditure in the next financial year is deferred in the balance sheet.

The value of investments and property bequeathed or donated to Demelza Hospice Care for Children is taken to be market value on the date when the documents of title are received.

Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs relating to that category. Where costs cannot be directly attributable to particular headings, they have been allocated to activities on a basis consistent with the use of resources. Central overhead costs are allocated to operational and fundraising functions on the basis of their use of central support services.

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

28 Demelza annual report and financial statements

Support costs, which include central or regional functions such as general management, budgeting and accounting, payroll administration, human resources, information technology, facilities and estates, are allocated across charitable and fundraising activities under the following categories, financial management, people and organisational development, information systems, facilities and estates.

Where information about the aims, objectives and projects of the Charity is provided in the content of fundraising material in an educational manner in the furtherance of the Charity’s objectives, those costs are apportioned to charitable activities. Irrecoverable value added tax (VAT) is included in the relevant expense categories.

Support and governance costs are apportioned on the basis of usage of a resource in terms of time taken, capacity used and requests made.

Tax

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

Freehold buildings

The period of the estimated useful life up to a maximum of 50 years from the date of purchase.

Leasehold land and buildings

The unexpired portion of the lease up to a maximum of 50 years from the date of the most recent revaluation or, if later, the date of the purchase.

Building improvements

Between 3 to 25 years based on nature of usage, or if earlier, the unexpired portion of the lease.

Motor vehicles

Motor vehicles are stated in the Balance Sheet at cost, less depreciation provided to write off the vehicles over a period of 4 years.

Equipment

Equipment is stated in the Balance Sheet at cost less depreciation to write off the equipment over a period of 4 years.

Intangible fixed assets

Intangible fixed assets such as the website, software and intellectual property are amortised over a period of 3 to 10 years.

Fund accounting Restricted funds

These funds are restricted by the donor for specific purposes. Revenue funds restricted by the donor are held in restricted reserves and funds are matched against expenditure as appropriate.

Unrestricted funds

Leases

All leases are operating leases. Costs in respect of these leases are charged to the statement of financial activities over the term of the lease.

These funds comprise accumulated surpluses and deficits on general funds that are expendable at the discretion of the Trustees in furtherance of the objects of the charity and that have not been designated for other purposes.

Fixed assets

Land and buildings

Land and buildings are stated in the balance sheet at the most recent valuation or, in the case of purchases or additions subsequent to the date of such valuation, at cost, less depreciation provided in relation to such valuation or cost, as appropriate, to write off the assets other than freehold land over the following periods.

Designated funds

These are unrestricted funds that have been set aside at the discretion of the Trustees for particular purposes.

Short term employee benefits

Salaries, wages and employment-related payments are recognised in the period in which

Demelza annual report and financial statements 29

the service is received from employees. The cost of annual leave entitlement earned but not taken by employees at the end of the period is recognised in the financial statements to the extent that employees are permitted to carry-forward leave into the following period.

Pensions

Demelza Hospice Care for Children operates a defined contribution scheme available to the majority of its permanent employees. The Charity and its subsidiaries also make contributions to the National Health Service Pension Scheme for certain employees which is a defined benefit scheme. However, the scheme is a multi-employer scheme and the charity is unable to identify its share of the underlying assets and liabilities. As a result, this scheme is also accounted for by the charity as a defined contribution scheme.

All the pension schemes are administered by separate trustees and are run independently of the charity.

goods or services is made. Regular sales are recognised and de-recognised, as applicable, using the trade date.

De-recognition

All debtors are de-recognised when the rights to receive cash flows from the assets have expired or the Charity has transferred substantially all of the risks and rewards of ownership.

Investments

Investments held for the long-term to generate income or capital growth are carried at fair value as fixed assets. Realised and unrealised gains are accounted for within the statement of financial activities.

Investment properties

Investment properties are valued at the year end. Gains or losses are recognised in the accounts of the relevant subsidiary and shown within the statement of financial activities.

Stock

The costs of providing pensions for employees are therefore all charged in the statement of financial activities for the year in which the contributions are payable.

Liabilities

Future liabilities are recognised when Demelza Hospice Care for Children has a legal or constructive financial obligation, that can be reliably estimated and for which there is an expectation that payment will be made.

Stocks comprise finished goods and are stated at the lower of cost and net realisable value.

Creditors and provisions

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

Financial instruments

Cash at bank and short-term deposits includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. All cash and short-term deposits are basic instruments and are measured at amortised cost.

Donated goods

The trustees have concluded and agreed that the valuing of shops donated goods for resale on receipt is impractical due to the high volume of low value items, lack of stock system for recording these items and the administrative cost involved. Instead, the income is recognised in the accounts when these goods are sold.

Debtors recognition

Debtors which arise from contracts for the sale of non-financial items (such as goods or services), which are entered into in accordance with the Charity’s normal sale or usage requirements, are recognised when, and to the extent that, performance occurs, i.e. when delivery of the

30 Demelza annual report and financial statements

==> picture [539 x 512] intentionally omitted <==

----- Start of picture text -----
|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |2|Donations|&|Legacies|Unrestricted|Restricted|Unrestricted|Restricted| |Funds|Funds|Funds|Funds| |2025|2025|2025|2024|2024|2024| |£000|£000|£000|£000|£000|£000| |Donations|2,766|536|3,302|3,245|277|3,522| |Gifts|In|Kind|33|ie)|33|1,392|0|1,392| |Legacies|3,245|0|3,245|2,150|0|2,150| |-|6,044|#4536|6,580|6,787|+|®&«.277|+ «7,063| |3|Trading|Activities|Unrestricted|Restricted|Unrestricted|Restricted| |Funds|Funds|Funds|Funds| |2025|2025|2025|2024|2024|2024| |£000|£000|£000|£000|£000|£000| |Lottery|income|1,868|ie)|1,868|1,848|ie)|1,848| |Retail|sales|4,186|0|4,186|4,369|0|4,369| |Rental|income|100|0|100|150|0|150| |6154|£40|6154|°°#£46,367.|°°&4«O|6,367| |4|Income|from|Charitable|Activities|Unrestricted|Restricted|Unrestricted|Restricted| |Funds|Funds|Funds|Funds| |2025|2025|2025|2024|2024|2024| |£000|£000|£000|£000|£000|£000| |Fundraising|events|683|0|683|526|0|526| |Grant|contribution|funded|by|NHS|0|1,710|1,710|0|1,668|1,668| |England| |Funding|from|CCGs/Local|Authorities|1,114|Oo|1,114|755|0|755| |Other|Grants|207|584|791|109|206|315| |Other|Income|99|0|99|213|0|213| |«2,103|0~—~*~<“‘«‘|DH|4,397 00—~—~~—CO«, 603|0—~——ia1,874|393,477| |5|Income|from|Investment|Unrestricted|Restricted|Unrestricted|Restricted| |Funds|Funds|Funds|Funds| |2025|2025|2025|2024|2024|2024| |£000|£000|£000|£000|£000|£000| |Bank|Interest|0|0|0|14|0|14| |Investment|portfolio|income|204|0|204|338|0|338| |—204C—“=<“<“<~C”:t:CODH8B|B:~<“<t«~Cti‘i;isS'S BB|

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

6 Expenditure on Raising
Funds		 Direct Support Direct Support
Costs Costs Total Costs Costs Total
2025 2025 2025 2024 2024 2024
£000 £000 £000 £000 £000 £000
Generating voluntary income 1,238 422 1,660 1,349 437 1,786
Fundraising events costs 312 107 419 277 90 367
Retail expenditure 3,956 525 4,481 3,748 493 4,241
Lottery Expenditure 722 63 785 685 61 746
Property lettings costs 189 9 198 177 9 186
Events company costs 49 0 49 56 0 56
Investment management fees 52 0 52 42 0 42
6,518 1,126 7,644 6,335 1,090 7,425
7 Charitable Activities Direct Support Direct Support
Costs Costs Total Costs Costs Total
2025 2025 2025 2024 2024 2024
£000 £000 £000 £000 £000 £000
Residential Services 7,115 1,912 9,027 6,610 1,987 8,597
Community Services 1,359 537 1,896 1,393 553 1,947
"8,474 ~=«2,449 «110,923. 8,003.-—-2,540 10,544
2025 2024
£000 £000
Direct charitable costs consist
Care Costs 7,027 6,670
Catering and Housekeeping 414 385
Centre costs 1,033 948
8474«=8,003

8 Support Costs

Support Costs Total Total
2025 2024
£000 £000
Support costs consist of:
Human Resources and administration 958 878
Finance 454 331
IT 813 1,077
Volunteer Services 161 163
Marketing 549 622
Governance Costs 85 83
Depreciation 555 476
3,575 3,630
Which is allocated:
Generating funds 1,126 1,090
Charitable activities 2,449 2,540
3,575 3,630

Governance Costs consist of:

2025 2024
£000 £000
Audit and accountancy fees 35 34
Staffing costs 50 49
85 83

No Trustees received remuneration during the period (2024: nil). Trustee expenses reimbursed amounted to £0 (2024: nil).

Trustees made donations during the year of £2,398 (2024:£20,607) none which were restricted. This includes purchase of tickets to Demelza events.

9 Staff Costs

Staff Costs 2025 2025 2024 2024
£000 £000 £000 £000
TOTAL TOTAL TOTAL TOTAL
GROUP CHARITY GROUP CHARITY
Wages and salaries 10,734 10,528 10,171 9,873
Employer’s National Insurance 1,010 992 939 913
Pension costs 720 710 692 676
"12,464 ,230 ° #«11,801 ++=11,462—

The average number of full-time equivalent employees during the year was:

FTE FTE NO NO
2025 2024 2025 2024
Nursing and care services 142 138 171 196
Retail 79 68 110 92
Fundraising 29 28 33 29
Support functions 50 49 58 61
TOTALCHARITY 300 283 £372 °₺
Lottery 5 5 6 7
-— 305 4288 378 385.
Higher Salary Band (Gross Annual Salary) 31/03/2025 31/03/2024
£60,001 - £70,000 3 0
£70,001 - £80,000 3 3
£80,001 - £90,000 2 1
£90,001 - £100,000 1 0
£100,001 - £110,000 0 1
£110,001 - £120,000 1 0
~~
10
©.5

Total Senior Management Team salary, inclusive of pension, was £639k (2024: £636k). The CEO salary, inclusive of pension, was £119k (2024: £115K).

10 Net Income for the Year 2025 2024
£000 £000
Net income for the year is stated after charging /
(crediting):
Operating leases - land and buildings 823 577
- other 109
Auditors’ remuneration (excluding VAT)
- audit of parent company 17 17
- audit of subsidiaries 14 14
- preparation of tax return for parent company 0 0
- preparation of tax return for subsidiaries 4 3
Depreciation of fixed assets 555 475
11 Net Income of Trading Subsidiaries 2025 2024
£000 £000
Demelza Trading Ltd
Turnover 2,024 2,099
Cost of sales (278) (295)
Gross profit 1,746 1,804
Administration expenses (648) (799)
Management Charge - Demelza Hospice Care for Children (94) (94)
Other operating income 0 0
Operating Profit 1,004 912
Net Profit 1,004 912
Gift Aid payment to Demelza Hospice Care for Children (1,004) (912)
Retained Profit for the Year Oo oO
Retained profit brought forward 0 0
Retained profit carried forward ad 0
Demelza Trading Ltd (company number 03090528) is a wholly owned
trading subsidiary of the charity, which is incorporated in the UK. The
subsidiary operates a number of retail outlets selling donated goods, cards
and other merchandise and runs a lottery scheme. The company madea Gift
AidpaymentofitstaxableprofitstoDemelzaHospiceCareforChildren.
11 Net Income ofTrading Subsidiaries (continued) 2025 2024
£000 £000
ACG Lettings Ltd
Turnover 99 150
Profit on Sale ofAssets 1,352 0
Administrative Expenses (192) (127)
Management Charge to Demelza Hospice Care for Children (9) (9)
Gross Profit 1,250 14
(Loss) / Gain on Revalued Properties (101) (142)
Operating Profit 1,149 (127)
Net Profit 1,149 (127)
Tax on Profit 230 29
Profit After Tax 1,379 (98)
Gift Aid payment to Demelza Hospice Care for Children (1,352) (36)
Tax on profit 0 0
Retainedprofit/(loss)carriedforward "—
-27~——O(134)

ACG Lettings Ltd (company number: 03031999) was bequeathed to the charity as part of a legacy. The shares were transferred on 31st March 2020. The company is a residential property lettings company owning property in Dover, Deal and Ash.

South East Medical Services Limited (company number:

06042090) is a wholly owned subsidiary of the charity, which is incorporated in the UK. The company was dormant in the current and prior year having net assets of £1. The principal activity of the company was the construction of children’s hospice buildings with the profit being gift aided to the charity.

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

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

15 Investments - Charity 2025 2024
£000 £000
Unlisted investments
Demelza Trading Limited 0 0
South East Medical Services Limited 0 0
ACG Lettings Ltd 1,760 3,085
Total 1,760 3,085

The £101 unlisted investments represent a 100% shareholding in Demelza Trading Limited and a 100% shareholding in South East Medical Services Ltd. The charity has three subsidiaries as follows:

Capital
and
Class of Nature of Reserves
at
Shares held Business 31 Mar 25
£
Demelza Trading Limited Ordinary Retailing 0
South East Medical Services Ltd Ordinary Dormant 0
Property 1,760
ACG Lettings Ltd Ordinary Lettings
Charity & Group Investment Fund 2025 2024
£000 £000
At 1 April 11,294 11,740
Invested in the year 0 0
Dividends & Interest received 220 338
Withdrawals (500) (1,401)
Investment Managers' Charge (52) (42)
Unrealised gains in the year 371 659
At31March 11,333 11,294

The historic cost of the investments was £11,333k (2024: £11,294k)

Asset Allocation 2025 2024
£000 £000
Liquid Assets 1,923 802
Fixed Income 997 2,662
Equities 7,016 6,412
Property 387 547
Alternative Investments 1,010 871
Total 11,333 11,294
16 Stock Group Charity Charity
2025 2024 2025 2024
£000 £000 £000 £000
Goods for resale 47 34 0 0
— 47 34 OO
17. Debtors Group Charity
2025 2024 2025 2024
£000 £000 £000 £000
Amounts due from subsidiaries 0 0 613 364
Trade debtors 138 435 116 402
Bad Debt Provision (7) (16) (7) (16)
Prepayments & Accrued Income 789 764 779 760
VAT 208 198 171 124
- 2,128 1,381 1,672 °,633 1,633
18 veeramountsfallingduewithinone Group Charity
2025 2024 2025 2024
£000 £000 £000 £000
Trade creditors (380) (276) (331) (249)
Tax and social security costs (235) (228) (197) (188)
Other creditors (204) (155) (201) (152)
Accrualsanddeferredincome (471) (725) (285) (434)

All the deferred income of £369k will be released in the following year. This represents ticket payments in advance by supporters for events in the following year and payments in advance by the lottery players.

Accruals and deferred income includes deferred income as follows:

2025 2024
£000 £000
B/fwd (397) (369)
Amounts deferred in the year (328) (397)
Amounts released in the year 397 369
C/fwd (328) (397)

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

Capital Grant contribution funded by DHSC (Hospice UK) is the first quarter of a grant awarded by DHSC, administered via Hospice UK, restricted to capital projects. This funding was received in 2024-25 and a requirement of the grant was that it must be spent by 31st March 2025.

East Kent CCGs Grant funds training, care at home and the managed clinical network in Kent and Medway.

Care Where You Are represents the delivery of palliative care in a variety of settings to enable access by those who cannot reach a residential hospice.

Bereavement Services and Family Fund supports services at Kent, S.E. London and E. Sussex.

Hill Farm accommodation was donated by a property developer in Bobbing in August 2023. Demelza has paid for specialist adaptations to the property so that it is suitable for the children and families supported. A local philanthropist donated the land.

Building and Ground Improvement Projects funds building works and improvements to the grounds at Kent, S.E. London and E. Sussex.

East Sussex Community Equipment & Running Costs funds the work of the East Sussex team and equipment required.

Kent Hospice Equipment and Running Costs funds the work of the Kent team and equipment required.

S. E. London Hospice Equipment and Running Costs funds the work of the S.E. London team and equipment required.

Demelza annual report and financial statements 41

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

Designated Funds

Fixed assets & Investment Property fund – Represents unrestricted funds tied up in fixed assets. At the balance sheet date the balance of fixed asset designated reserves equates to the net book value of fixed assets held. Care & Resources Strategy fund – The Trustees have approved the charity’s strategy for 2022 - 2027. They have designated the funds required for the planned developments in the care departments and support functions. Digital transformation Fund represented funds designated at the out set of the current strategy for Demelza to make all services digitally accessible to users and to harness digital processing of data to bring greater accuracy and efficiency. The work on Digital Transformation has been moved from project work to business as usual and will form part of the budgeting process each year. As such, these funds were de-designated in 2023-24. Capital Asset Fund is designated- funds designated for larger on-going projects.

Unrestricted general funds represent the unrestricted reserves of the Charity, which are not designated for particular purposes, and therefore the Trustees can utilise as they see fit in accordance with its charitable objects.

42 Demelza annual report and financial statements

19 Funds (continued) Incoming Resources Summary of Total Resources Expended Group Funds

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|||||||| |---|---|---|---|---|---|---| |Balance|at|including|including|Transfer|Balance|at| |1 April|gains on|loss on|Between|31|March| |2024|investments|investments|Funds|2025| |£000|£000|£000|£000|£000| |Restricted funds|190|2,829|(2,350)|0|669| |Unrestricted|funds|24,805|14,879|(16,320)|0|23,364| |Total funds|«24995—s—“‘<i«é«CNT,0Be—Csti‘“‘CC#O‘(A8x670)~0=C€#C=C“‘“‘(‘(‘C‘ON#é‘CSCéCO2OZB#C#O|

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|||||||| |---|---|---|---|---|---|---| |Incoming|Resources| |Resources|Expended| |Balance|at|including|including|Transfer|Balance|at| |1 April|gains on|loss on|Between|31|March| |2023|investments|investments|Funds|2024| |£000|£000|£000|£000|£000| |Restricted|funds|616|2,151|(2,577)|0|190| |Unrestricted|funds|24,571|15,767|(15,533)|0|24,805| |Total funds|25,187|17,918|(18,110)|0|24,995|

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

23 ~=Analysis in Changes of Net Debt

23 ~=Analysis in Changes of
Net Debt
At 1 April Cash At 31
2024 movements March
2025
£000 £000 £000
Cash at bank 2538208202052
At 1 April Cash At 31
2023 movements March
2024
Cash at bank 2,627 (1,095) 1,532
24 Pensions 2025 2024
£000 £000
Defined Contribution 419 386
Scheme
NHS Pension Scheme 302-305
Total Pension Costs (Note 720 692
10) a

Defined Contribution Scheme

The charity and its subsidiaries operate a defined contribution scheme available to the majority of its permanent employees. Contributions are charged in the financial statements as they are incurred and there were no outstanding contributions as at the balance sheet date. Pension costs charged in the period were £419k (2024: £386k).

NHS Pension Scheme

The NHS Pension Scheme is an unfunded, defined benefit scheme that covers NHS employees, General Practices and other bodies, allowed under the direction of Secretary of State, in England and Wales. As a consequence, it is not possible for Demelza House Children’s Hospice Ltd to identify its share of the underlying scheme liabilities. Therefore, the scheme is accounted for as a defined contribution scheme and the cost is the contributions payable to the scheme for this accounting period.

Employers’ pension contributions are charged to operating expenses as and when they become due. The total employer contribution payable by Demelza in 2024-25 was £301k (2024: £305k). In addition, employees who are members of the scheme pay contributions of 5.6% to 12.5% depending on their pensionable pay.

In accordance with FRS102, a valuation of the Scheme liability is carried out annually by the Scheme Actuary as at the Scheme’s balance sheet date by updating the results of the full actuarial valuation. The latest assessment of the liabilities of the Scheme is contained in the Scheme Actuary report, which forms part of the annual NHS Pension Scheme (England and Wales) Resource Account, published annually. These accounts can be viewed on the NHS Pensions website.

46 Demelza annual report and financial statements

Comparative Statement of Financial 28 Activities for the year ended 31 March 2024

Comparative Statement of Financial
Activities for thethe year ended 31
March 2024
Unrestricted Restricted Total
Notes Funds Funds 2024
£000 £000 £000
Income
Donations and legacies 2 6,786 277 7,063
Other trading activities 3 6,367 - 6,367
Income from Charitable Activities 4 1,603 1,874 3,477
Income from Investments 5 353 - 353
Total income 15,109 2,151 17,260
Expenditure
Expenditure on Raising funds 6
Generating donations and legacies 1,786 - 1,786
Fundraising events 367 - 367
Trading Expenditure 5,230 - 5,230
Investment management fees 42 - 42
Total Expenditure on Raising funds 7,425 - 7,425
Expenditure on Charitable activities 7
Residential service 6,394 2,203 8,597
Community Service 1,573 374 1,947
Total Expenditure on Charitable
activities 7,967 2,577 10,544
Total Expenditure 15,392 2,577 17,969
Deficit before investment
gains/(losses) (283) (426) (709)
Net Gains/ Loss on investment 15 659 - 659
Loss on disposals of investment
property (142) - (142)
Net income / (expenditure) 234 (426) (192)
Transfers between funds - - -
Net movement in funds 234 (426) (192)
Fund balances brought forward at 1°
Apr 2023 24,571 616 25,187
Fund balances carried forward at31st
March2024 24,805 190 24,995

Structure, governance and management

Organisational structure

The charity operates as a company limited by guarantee, under the terms of its memorandum and articles of association. Legal responsibility for the management and stewardship of the hospice is vested in the Board of Trustees.

Day-to-day operational decisions are delegated to a Senior Leadership Team. During the period covered by this report this consisted of a Chief Executive, Deputy Chief Executive (also leading on Fundraising, Marketing & Lottery), Director of Nursing and Care, Director of Trading, Director of People and Culture and Director of Finance & Resources (none of whom are directors within the meaning of the Companies Act).

Key management personnel are those individuals who have authority and responsibility for planning, directing and controlling the activities of the charity, directly or indirectly, including any director (whether executive or otherwise). The Remuneration Committee is responsible for setting the pay for these personnel, comparing to industry benchmarks as appropriate.

The Trustees, directors and management are shown on page 50 of this document.

The Trustees held four Board meetings during the year. The sub-committees also met regularly throughout the year, reporting respectively for matters concerned with clinical governance, safeguarding, fundraising & marketing, people & resources, investments and appraisal & remuneration.

The trading company (Demelza Trading Limited No. 03090528) is a wholly owned subsidiary incorporated in England and Wales and has a separate Board of Directors that reports to the Board of Trustees of the charity. The trading subsidiary runs the retail businesses, bubble rush (branding and equipment to run Bubble Rush events at other organisations) and a weekly lottery to support the objects of the charity.

The charity’s subsidiary South East Medical Services Limited (SEMS No. 06042090), which built the Eltham hospice, had no turnover this year and is dormant.

The charity’s subsidiary ACG Lettings Ltd (No 03031999) is a wholly owned subsidiary incorporated in England and Wales and has a separate Board of Directors which reports to the Board of Trustees of the charity. This trading subsidiary owns, maintains and lets residential property in East Kent.

Trustee induction and training

The Board of Trustees maintains a skills matrix of all Trustees to identify core competencies required. If any gaps in skills are identified the Trustees actively seek a suitable candidate to fill that role on the Board. Candidates are interviewed by suitable existing Trustees and the CEO, and if offered a position, they are then ratified at the next available Board meeting. All potential Trustees are offered the opportunity to have a tour of the hospice, to support with the overall recruitment process.

New Board members are then given an induction pack, including relevant Charity Commission and Companies House publications, statutory accounts and explanations of their duties and copies of previous board meeting minutes. They also attend an induction session with selected Trustees and members of the Senior Leadership Team.

All members of the Board are encouraged to attend appropriate internal and external training and events where these facilitate the undertaking of their role.

Clinical governance

Demelza has a comprehensive Clinical Governance Policy and appropriate procedures in place. Demelza will demonstrate accountability for, and ensure continuous improvement in, the quality of services for expectant mothers, babies, children and families and safeguard high standards of care by creating an environment in which excellence in clinical care will flourish.

The Clinical Governance Committee (which is a sub-committee of the Board):

48 Demelza annual report and financial statements

Key performance indicators

The Senior Leadership Team monitors a variety of key performance indicators (KPIs) to check achievement of strategic and operational objectives, reporting on them to Trustees. These KPIs monitor the amount and type of care provided, management of resources, and income generation.

Statement on public benefit

The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard for public benefit guidance published by the Charity Commission in determining the activities undertaken by the charity. In the interest of transparency, the Trustees make the following observations on the two key principles of public benefit.

in surveys and representatives’ forums, to gain information on our impact.

The Trustees review the activities of the charity against its aims on an ongoing basis and are satisfied that all activities continue to be related to its aims.

The charity does not exclude or give priority on any basis other than medical and social need. Any private benefits are incidental, with Trustees receiving no remuneration, and any personal or business involvement is listed under the related party transaction section.

Firstly, Demelza is clear on the beneficiaries of its work in this report and in its general communications. The beneficiaries are babies, children and young people with serious and lifelimiting conditions and their families, and expectant mothers, within Kent, East Sussex and South East London. A referral process is in place with clear guidelines on criteria, with anyone being able to refer a child subject to appropriate consent, including families themselves. The Trustees have paid due regard to the latest demographic and other research and data on the number of actual and potential beneficiaries, and their needs.

Secondly, our business-planning and monitoring/ reporting are structured around the benefits delivered to the beneficiaries through our work, including monitoring the impact we have had on their lives. This is reflected in the Trustees’ report. The benefits are respite care, therapeutic services, and other related activities, with access to emergency and end of life care when required. This can be at either of the hospices or within the family home via the community care teams. Support services include family support, therapies and pre and post bereavement support for the child and their immediate family.

The monitored benefits include whether assessed needs within individual care plans have been met, and improvements (including increased social functioning, resilience, and emotional wellbeing) monitored through standardised tools. We also regularly consult with our beneficiaries, for example

Demelza annual report and financial statements 49

Corporate Information Demelza Hospice Care for Children

A company limited by guarantee Company No. 2948500 (Demelza Hospice Care for Children) Charity No. 1039651 Registered office: Rook Lane, Bobbing, Sittingbourne, Kent, ME9 8DZ www.demelza.org.uk Telephone: 01795 845200

Subsidiary companies:

Demelza Trading Limited - Company No. 03090528. A private limited company. ACG Lettings Ltd - Company No. 03031999. A private limited company.

Trustee board

Chair - Sean Reynolds

Associate Trustees

Rory Burns – appointed July 2024 Lucille Harvey – appointed February 2025

Trustees

Robert Alexander - retired March 2024 Darren Anstee - retired November 2024 Pedro Avery Pippa Barber - retired November 2024 Richard Douglas Richard Finn Paul Hewish George Hunter Debbie Kemp - retired January 2024 Yvonne Parks Charlotte Parry-Jones Alex Parry-Jones Nicola Porter (Tyers) Natasha Smith Paul Smith Aishah Sameem – appointed July 2024 Karl Holliman – appointed July 2024 Paula Wilkins – appointed July 2024 Susan Tether – appointed July 2024 John Simpson – appointed January 2025 Jenneh Tarawally – appointed March 2025 Richard Patey – appointed March 2025 Heather Lucas – appointed March 2025

Company Secretary Charlotte Chamberlain

Founder president

Derek Phillips – deceased July 2024

President

Richard Oldfield OBE DL

Vice Presidents

The Most Reverent and Right Honourable Justin Welby, Archbishop of Canterbury – resigned January 2025 Adam Phillips – appointed December 2024 Sir Martyn Lewis CBE Lady Kingsdown OBE Paul Auston DL Turrloo Parrett Fiona Sunley Des Crampton DL James Kelly Sarah Kemsley Rhiannedd Brooke - resigned October 2024

Celebrity Ambassadors

Daniel Radcliffe Sally Lindsay The late Len Goodman Dave Berry Jayne Torvill OBE Cheryl Baker Robin Cousins MBE Anna-Jane Casey

Chief Executive Officer Lavinia Jarrett

Deputy Chief Executive Officer (Director of Fundraising, Marketing and Lottery) Hayley Richardson

Director of Finance and Resources

Auditors

Saffery LLP 71 Queen Victoria Street, London, EC4V 4BE

Charlotte Chamberlain

Bankers

Director of Clinical Services

Katie Stevens

Director of People and Culture Hayley Clark

Director of Retail

Ashley Henson

Director of IT, Data and Governance Claire Ellis-Waghorn

National Westminster Bank Plc 2nd Floor County Gate, Stacey’s Street, Maidstone, Kent ME14 1ST

Principal Solicitor

Mayo Wynne Baxter Solicitors 3 Bell Lane, Lewes, East Sussex BN7 1JU

50 Demelza annual report and financial statements

Demelza annual report and financial statements 51

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@demelzacharity

info@demelza.org.uk

Demelza Kent (Registered Office) Rook Lane, Bobbing, Sittingbourne, Kent, ME9 8DZ T: 01795 845200

Demelza Demelza South East London East Sussex 5 Wensley Close, 150a Bexhill Road, Eltham, London, St Leonards-on-Sea, SE9 5AB East Sussex, TN38 8BL T: 020 8859 9800 T: 01323 446461

Find out more at:

demelza.org.uk

© Demelza 2024. Updated August 2025.