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2023-12-31-accounts

THE PRET FOUNDATION

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

Charity registration numbers: 1050195 and SC050501

THE PRET FOUNDATION

REPORT OF THE TRUSTEES (continued)

FOR THE YEAR ENDED 31 DECEMBER 2023

Trustees C Schlee (Chair)
A Wareham (until March 2023)
P Christou
V Cuminet
D McDermott (until July 2023)
D Winterkorn
C Clough (from March 2023)
Global Head N Allard
Principal Office Pret A Manger
10 Bressenden Place
London
SW1E 5DH
Auditor Haysmacintyre LLP
10 Queen Street Place
London
EC4R 1AG
Bankers HSBC Bank plc
4 Robertson Street
Hastings
East Sussex
TN34 1HW
Registered Charity Numbers
England and Wales 1050195
Scotland SC050501

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THE PRET FOUNDATION

REPORT OF THE TRUSTEES (continued)

FOR THE YEAR ENDED 31 DECEMBER 2023

Chairman’s Statement

The Pret Foundation was back at its best and finished on a high in 2023. The Rising Stars’ employment programme grew from strength to strength, supporting a total of 104 people into jobs at Pret and giving them everything they need to sustain a job. I was thrilled to spend time with Rising Stars like Jess and Denis, who, against all odds, have turned things around, and shown a commitment to rebuilding their lives through hard work at Pret.

The Ukrainian Employment Programme continued to flourish, supporting over 350 people into employment since the conflict started in Spring 2022. Over half are still at Pret – many have taken some huge leaps. We have a cohort of ten Ukrainians taking part in a Level 3 & 4 Business Transformation and Digital Business Apprenticeships, continuing to build their skills and experience. We are immensely proud of all that they have achieved and hope that we have played a small part in supporting them to create a new life here in the UK.

For the first time we started to share our voice externally, signing up to the Homelessness Covenant which is led by Crisis and supported by DWP and DLUHC. Having led the way in supportive employment practices since 2008 through the Rising Stars programme, we have a valuable opportunity to share best practice and encourage like-minded businesses to join our efforts to end homelessness.

Finally, our partnership with The Royal Foundation and hosting HRH Prince William in the Bournemouth shop to meet with some of our Rising Stars, Moe, CK and Anthony, was a highlight. His initiative, Homewards, is a locally led 5-year programme in the UK and aims to demonstrate that it is possible to end homelessness. As part of the initiative, we have committed to supporting another 500 people into employment by 2028. We certainly look forward to working in partnership with HRH and everyone at The Royal Foundation in the coming years.

Clive Schlee Chair of Trustees

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THE PRET FOUNDATION

REPORT OF THE TRUSTEES (continued)

FOR THE YEAR ENDED 31 DECEMBER 2023

The Trustees present their report together with the audited financial statements for the year ended 31 December 2023.

The Foundation was registered as a charity with the Charity Commission on 26[th] October 1995 and with the Office of the Scottish Regulator on 29[th] September 2020.

STRUCTURE, GOVERNANCE AND MANAGEMENT

1) Constitution

The legal form of the Charity is that of a Trust. The Charity’s governing document is a Trust Deed dated 19 July 1995 together with Deed of Amendment dated 11 June 2019 and Deed of Amendment dated 17 September 2020. A new Trust Deed dated October 2021 was approved, which replaced the previous Trust Deed.

2) Change of name

On 11 June 2019 the Charity changed its name from Pret Foundation Trust to The Pret Foundation.

3) Selection and training of Trustees

Trustees represent both senior management of Pret A Manger (Europe) Limited and independent individuals with relevant skills and experience in fundraising and grant making. Trustees are appointed in accordance with clause 9 of the Trust Deed. New Trustees are informed of their obligations and are provided with a copy of the Trust Deed, latest accounts, recent minutes, and suitable guidance available from the Charity Commission. Members of the Board are also offered external Trustee training.

Trustees who served during the year and up to the date of this report were as follows:

C Schlee A Wareham P Christou V Cuminet D McDermott D Winterkorn C Clough

4) Organisational Structure and key management personnel

The Board of trustees meet at least four times a year and oversee finance, delivery, and future strategy. The Foundation currently does not have any sub committees. Key management personnel consists of the Global Head of the Foundation whose costs are recharged from Pret and their salary level benchmarked in line with the Association of Charitable Foundations’ report on salaries.

5) Principal risks

The Trustees actively review the principal risks which the Foundation faces on a regular basis, especially those relating to its operations and finances and consider what actions can be taken to mitigate these risks. The key risks that would have the highest impact continue to be safeguarding issues in relation to Rising Stars, and loss of funds.

The Trustees are satisfied that systems are in place to mitigate the Foundation’s exposure to the principal risks. The Trustees’ formal risk management strategy comprises:

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THE PRET FOUNDATION

REPORT OF THE TRUSTEES (continued)

FOR THE YEAR ENDED 31 DECEMBER 2023

Key controls used by the Foundation include:

OBJECTIVES AND ACTIVITIES

The Pret Foundation’s purpose is the alleviation of poverty, in particular hunger and homelessness in the UK and across global markets in which Pret A Manger operates.

In consideration of projects, the Trustees have paid due regard to Charity Commission guidance on public benefit in deciding what activities the Foundation should undertake. Through its activities of food distribution, employment programmes, and cash donations to grassroot homeless charities, The Pret Foundation helps to improve the welfare of people experiencing, or at risk of, homelessness.

The Pret Foundation aligns its objectives and activities to achieve this public benefit as detailed below.

1) Food Distribution

The Pret Foundation arranges for unsold food to be collected at the end of each day from Pret A Manger shops arranging collections by local charities or working with third party partners such as Neighbourly and Too Good To Go. Our priority is to ensure the food reaches charities, shelters, hostels and outreach programmes that are supporting people experiencing homelessness, or at risk at no cost to the beneficiary. Where this is not possible, we will seek an alternative.

During 2023 The Pret Foundation ceased van operations in Central London for a number of reasons and switched fully to working with Neighbourly across the UK. The relationship with Too Good To Go was also scaled for shops where food cannot be donated (i.e. airports) with 50% of revenue coming to The Pret Foundation.

2) The Rising Stars and Shooting Stars Employment Programme

The Rising Stars Programme offers people experiencing homelessness, or at risk, the opportunity of a 12-week paid placement in shops or in Support Centre teams. The programme gives individuals the same benefits as Pret A Manger employees, together with support with travel costs and access to weekly counselling. It can lead to a permanent position within Pret A Manger or help to provide the confidence and experience to follow a career elsewhere.

Over 30% of Rising Stars we've supported into employment since 2008 have been refugees so when the conflict broke out in Ukraine in Spring 2022, we felt compelled to build on our experience and knowledge and set up a dedicated Ukrainian Employment Programme. Initially a 6-month programme, this extended into 2023.

Furthermore, the Shooting Stars Programme offers a cohort of high potential graduated Rising Stars the opportunity to participate in a 9-month career development programme. It consists of learning modules over a period of 5 days, an insights profile for individuals to understand themselves and others and the creation of a clear Personal Development Plan. The cohort are also offered the opportunity to participate in supplier visits to get a greater understanding of business operations and the programme culminates in a trip to Austria to climb the country’s highest mountain – helping individuals to believe they’re capable of reaching new heights.

3) Financial Support

Historically The Foundation has funded smaller, grass roots charities that support people experiencing or at risk of homelessness. During 2023 the grants programme was paused due to limited funds available and to enable a review to be carried out.

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THE PRET FOUNDATION

REPORT OF THE TRUSTEES (continued)

FOR THE YEAR ENDED 31 DECEMBER 2023

ACHIEVEMENTS AND PERFORMANCE

The Trustees deem the Foundation to have fulfilled its objectives for the year.

1) Food Distribution

In 2023, we donated over 5 million surplus food items to charities and local communities across the UK (2022: 6 million), with approximately 80% of surplus food collection slots across shops assigned to charities across each week (2022: 90%). The reduction in number of food items donated is due to the transition from the Charity Run Vans and manual food donations system to our partnership with Neighbourly, which caused a drop in the amount of food donated as shops adjusted to the new processes.

We completed the transition of the food donations programme over to Neighbourly – the food sharing platform connecting business with local good causes to donate surplus to those in need. Neighbourly onboarded existing charity partners in London to the programme and filled additional gaps in shop collection schedules from their wide network of existing good causes. Rolling Neighbourly out across Greater London also saw us retire the Pret Charity Run fleet of vans from service in July 2023, meaning all shops eligible to donate across the UK estate are now donating their food via Neighbourly.

Via Neighbourly, Pret shops donated over 260,000 meals’ worth of surplus food items to 300 local good causes. Surplus ingredients not required by shops are also donated in bulk and delivered from the supplier warehouses direct to The Felix Project, a charity fighting hunger and food waste across London. In 2023 we donated over 110,000 kilograms of food to The Felix Project, equivalent to over 262,000 meals.

Across the regions, where charity collections aren’t always possible via Neighbourly, we also work with the food sharing app, OLIO, who have food waste heroes that can collect surplus food each day and donate to the local community – many on the poverty line. Through our partnership with OLIO we donated the equivalent of 242,000 meals’ worth of food items to local communities in 2023, supporting over 12,000 households with surplus food donations. In addition, throughout 2023 we continued our partnership with food waste redistribution app Too Good To Go, to sell and reduce hot food waste in shops which cannot be donated, and cold food with a same-day use-buy date from shops which close too late at night to donate this food. Across the year, Pret shops redistributed more than 95,000 meals via Too Good To Go ‘Surprise Bags’, which would otherwise have been wasted. Whilst this is not directly supporting the welfare of people experiencing homelessness, it will become one of our enablers - raising funds for The Pret Foundation to continue delivering its core activities. In 2023, our TGTG partnership became a valuable income stream for The Pret Foundation, resulting in an additional £139,500 in donated funds.

Across all our surplus food redistribution partnerships (Neighbourly, OLIO, and TGTG) we redistributed 600,000 meals of unsold food from Pret shops in 2023. This is not including food donated via the previous manual food donations system or Charity Run Vans.

2) The Rising Stars and Shooting Stars Programmes

The Rising Stars programme was established in 2008 and over 739 Rising Stars have been placed on to the programme, 567 of which have graduated. Each Rising Star obtains a 12-week placement, with the goal being that this leads to a career either within Pret A Manger or in another organisation.

In 2023 we were pleased to see a return to some form of normality and were able to recruit 104 Rising Stars on to the programme with 70.7% completing the 12 weeks training and 65% remaining with Pret A Manger for 6 months or more.

The Shooting Stars programme was set up in 2015 and to date 60 people have been recruited on to the programme. Shooting Stars attend numerous one day workshops attaining a National Apprenticeship - Level 2 in work skills. During 2023, 10 new Shooting Stars were recruited. Of this cohort, one has since returned to university, and another has secured a role at Head Office in the Digital Product team.

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THE PRET FOUNDATION

REPORT OF THE TRUSTEES (continued)

FOR THE YEAR ENDED 31 DECEMBER 2023

Ukrainian Employment Programme

Since March 2022 we have hired over 350 Ukrainian refugees. Made up of baristas, hot chefs, front of house leaders, kitchen leaders, team member trainers, and team members. 14 people have started level 4 Business Transformation Fellowship (for leaders and above) and Level 3 digital Business Accelerator for team members.

3) Financial Support

During the year the Foundation reassessed the impact of the support given over the years to smaller, grassroot charities which has previously been in the form of grants. No grants were awarded in 2023 (22 donations were made in 2022 totalling £250k). The strategic direction of the Foundation was agreed by the Trustees with a new grant giving programme resuming in 2024.

Funds for The Pret Foundation were slightly lower in 2023 at £1.453m (2022, £1.477m). Fundraising predominantly came from three sources:

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THE PRET FOUNDATION

REPORT OF THE TRUSTEES (continued)

FOR THE YEAR ENDED 31 DECEMBER 2023

Fundraising and Marketing

Sleep Out

We partnered with the Mayor Of London to Sleep Out, raising awareness of the issue of Homelessness, We had 118 participants (85% of which were Pret employees) take part on March 16th raising £158,642 for The Pret Foundation.

Volunteering

We launched volunteering month in October at 75B and encouraged global support centres and Operation teams to volunteer during a working day for with their charity partners. Over 145 people volunteered individually or as part of a team with over 20 of our charity partners. The success of the volunteering scheme and feedback from colleagues has enabled us to plan for two volunteering days for 2024.

The Royal Visit – Bournemouth

HRH Prince William along with ambassador and entrepreneur Steven Bartlett visited the Pret shop in Bournemouth to meet some of our Rising Stars as part of their Homewards initiative to end homelessness, with the support of businesses like Pret A Manger.

To mark the occasion Pret donated the sales of the day of the visit from six shop locations where Homewards are operating, resulting a donation of £19,805 to The Pret Foundation. The visit generated a huge amount of interest in the media. The total number of articles, including syndications, was 1,163, with a total estimated reach of 20,974,657,500.

Walkathon

Once again, we were the recipients of the Equal Experts fundraising initiative Walkathon. Approximately 170 participants from Pret took part across the globe. We raised £39,900 which was the largest sum awarded to charity from the five involved.

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THE PRET FOUNDATION

REPORT OF THE TRUSTEES (continued)

FOR THE YEAR ENDED 31 DECEMBER 2023

World Homeless Day

We once again had a presence in shops for two weeks in October to raise awareness of The Pret Foundation around World Homeless Day. We ran a donation mechanism for two weeks with Club Pret. Donating the 20% savings made on food to The Pret Foundation during the week of World Homeless Day raising £367,184.

Christmas

As well as 10p donations on soups, throughout November and December we had products contributing to The Pret Foundation – The Christmas Lunch Sandwich, Festive Falafel & Squash Sandwich. The Pret Foundation was a key message for the Pret Christmas campaign and we were able to share our voice across Pret’s channels- including on coffee cups and sandwich box packaging.

A small number of complaints were received during the year in the Pret A Manger shops about fundraising on the donation terminals which were resolved promptly in line with the charity’s policy on refunds.

FINANCIAL REVIEW

1) General

On 31 December 2023, the total funds held by the Foundation was £1,029,034 (2022: £1,003,627).

The Foundation has continued by good housekeeping and budgeting to maintain a healthy balance sheet. Expenditure was cut significantly in the year to match the much-reduced donation income.

2) Principal funding sources

The Foundation’s principal source of ongoing funding is the receipt of contributions from Pret A Manger (Europe) Limited (and its customers), who established the Foundation over twenty years ago. Both organisations continue to operate closely together and senior management of Pret A Manger (Europe) Limited sits on the Board of Trustees and assists Pret A Manger (Europe) Limited in carrying out their continuing commitment toward The Foundation’s objectives. The Foundation has taken steps to diversify its income streams over the period, namely introducing contactless donation terminals in shops and working with Too Good To Go.

The Foundation acknowledges the importance of good practice in fundraising as being essential in maintaining public confidence in the charity and are committed to ensuring all our activities are compliant with legislative, regulatory and best practice standards. The Foundation does not use professional fundraisers.

3) Reserves policy

Unrestricted funds are needed:

The Trustees consider it prudent that unrestricted reserves should be sufficient:

As of 31 December 2023, unrestricted reserves not invested in functional fixed assets were £1,029k which is higher than our desired reserve amount however, the Foundation is looking to award grants in 2024 which will then bring the reserves in line with our policy.

The level of reserves is monitored and reviewed by the Trustees at each Trustee meeting.

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THE PRET FOUNDATION

REPORT OF THE TRUSTEES (continued)

FOR THE YEAR ENDED 31 DECEMBER 2023

PLANS FOR THE FUTURE

The Trustees aim to continue to develop four key activities in 2024.

1) Food Distribution

The Foundation will maintain distribution of unsold food from Pret A Manger shops to charities, who provide the food to people experiencing homelessness or at risk via charities, shelters, hostels and outreach programmes. The Foundation will review the current processes in place to ensure as much food is being donated as possible whilst making the best use of resources available. Having completed the roll out of Neighbourly during 2023, we will ensure shop teams have the support they need to be compliant and log food available each day. We will also turn our attention to shops that cannot successfully be matched with a charity partner (i.e. due to location, or shop opening hours) and look to scale the relationship with OLIO to fill any gaps.

At the same time, we will work with Franchise Partners to refine their processes when it comes to donating food and ensure they have access to the tools they need to donate as much food as possible.

We will continue to partner with Too Good To Go to sell surplus food as a last resort when it cannot be donated and maximise this as a revenue opportunity, investing income back into delivering services.

2) The Rising Stars and Shooting Stars Programmes

Our core focus next year continues to be around providing sustainable employment opportunities for people experiencing homelessness or at risk. More importantly we wish to place Rising Stars in more shops in 2024, particularly outside of London and engage with our Franchise Partners to take them on the journey and offer opportunities in both franchise and equity shops.

Following the success of the Ukrainian Employment Programme, we also wish to embed refugee recruitment into the Rising Stars programme longer term.

We will do this by:

For the Rising Stars programme the aim in 2024 is to recruit 125 Rising Stars across 85 shops in the UK.

3) Financial Support

The Pret Foundation will return to grant making during the latter part of 2024 once a strategic review has been completed.

4) Fundraising and Marketing

Our focus for 2024 will be to deliver the most impactful year to date through a series of engaging and inspiring events such as the biannual Grand Auction, World Homeless Day, London to Paris Bike Ride, our annual Walkathon event with Equal Experts and 2 x Volunteering Days. We will also turn our attention to 2025, in anticipation of our 30[th] anniversary.

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THE PRET FOUNDATION

REPORT OF THE TRUSTEES (continued)

FOR THE YEAR ENDED 31 DECEMBER 2023

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

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

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Foundation and of the incoming resources and application of resources of the Foundation for the period. In preparing these financial statements, the trustees are required to:

The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the Foundation and which enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008; and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the Foundation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees, individually, are aware:

This report was approved on behalf of the Board of the Trustees on 18 September 2024 and signed on their behalf.

C Schlee Chair of Trustees Date: 18/9/2024

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE PRET FOUNDATION (continued)

Opinion

We have audited the financial statements of the Institute of the Pret Foundation for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011, and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant regulations made or having effect thereunder. 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 charity 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 charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 and the Charities Accounts (Scotland) Regulations 2006 require us to report to you if, in our opinion:

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE PRET FOUNDATION (continued)

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 11, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to provision of care regulations, health and safety regulations, employment law, safeguarding regulations and Charity law, and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011 and the Charities SORP.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to depreciation charges. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE PRET FOUNDATION (continued)

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act, and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity’s trustees as a body for our audit work, for this report, or for the opinions we have formed.

Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG

Date: 27 September 2024

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

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THE PRET FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2023

Notes
Income from:
Donations
4
Total
Expenditure on:
Charitable
activities
5(a)
Total
Net movement
in funds
Funds
transferred
during the year
Reconciliation
of funds:
Total funds
brought forward
Total funds
carried forward		 Restricted
funds
2023
£
2,500
2,500
2,500
2,500
-
-
-
-		 Unrestricted
funds
2023
£
1,450,571
1,450,571
1,425,164
1,425,164
25,407
-
1,003,627
1,029,034		 Total
funds
2023
£
1,453,071
1,453,071
1,427,664
1,427,664
25,407
-
1,003,627
1,029,034		 Total
Funds
2022
£
1,477,298
1,477,298

1,844,319
1,844,319
(367,021)
-
1,370,648
1,003,627

The Statement of Financial Activities includes all gains and losses recognized in the year.

All income and expenditure derive from continuing operations.

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THE PRET FOUNDATION

BALANCE SHEET

At 31 DECEMBER 2023

Notes 2023 2023 2022 2022
£ £ £ £
Fixed assets:
Tangible assets 9 48,430 -
Current assets:
Debtors 10 515,397 646,413
Cash at bank and in hand 529,912 512,714
Total current assets 1,045,309 1,159,127
Liabilities:
Creditors: amounts falling due
within one year		 11 (64,705) (155,500)
Net current assets 980,604 1,003,627
Total net assets 1,029,034 1,003,627
The funds of the charity:
Unrestricted funds 15 1,029,034 1,003,627
Restricted funds 15
- -
1,029,034 1,003,627

These financial statements were approved by the Trustees and authorised for issue on 18 September 2024 and signed on their behalf by:

C Schlee Trustee

The notes on pages 18-29 form part of these financial statements.

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THE PRET FOUNDATION

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2023

Note
2023		 2022
£ £
Cash flows from operating activities:
Net cash (used in)/provided by operating activities 16
82,421
(649,978)
Cash flows from investing activities:
Purchase of tangible fixed assets (65,223) -
Net cash provided by investing activities (65,223) -
Change in cash and cash equivalents in the reporting period 17,198
(649,978)
Cash and cash equivalents at the beginning of the reporting
period 512,714
1,162,692
Cash and cash equivalents at the end of the reporting period 529,912 512,714
Analysis of cash and cash equivalents
Cash at bank 529,912 512,714
ANALYSIS OF CHANGES IN NET DEBT:
At 1 January 2023 Cashflows At 31 December 2023
£ £ £
Cash and bank 512,714 17,198 529,912

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THE PRET FOUNDATION

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

1 Legal status of the Charitable Foundation

The Pret Foundation is an unincorporated charitable Foundation registered as a Charity at the Charity Commission in England and Wales (Charity Commission number is 1050195) and with the Scottish Charity Regulator (Charity Commisssion number is SC050501). The principal place of business is Pret A Manger, 10 Bressenden Place, London, SW1E 5DH.

The remit of the Foundation is “the relief of poverty in particular homelessness in the UK”. Historically, this has been achieved through the distribution of unsold food at the end of each day from Pret A Manger shops, employment programmes offering work to homeless people and financial donations to grass root homeless partner charities.

2 Accounting policies

Basis of preparation

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with 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) (effective 1 January 2019) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), Charities and Trustee Investment (Scotland) Act 2005, regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011.

The financial statements are prepared in sterling, which is the functional currency of the Foundation. Monetary amounts in these financial statements are rounded to the nearest £.

The Pret Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost unless otherwise stated in the relevant accounting policy notes.

Going concern

At the time of approving the financial statements, the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. A detailed review of the Foundation’s resources, operations and challenges presented by the current economic climate has been undertaken and based on the Foundation’s ability to flex and control its expenditure, dependent on income levels, and its strong cash reserves, trustees have concluded that the going concern basis remains appropriate and that the Foundation is able to meet its liabilities as they fall due. The trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the Foundation has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties with regard to the Foundation’s ability to continue as a going concern.

18

THE PRET FOUNDATION

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

2 Accounting policies (continued)

Income

All income is recognised once the Foundation has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the charitable objectives of the Foundation.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Foundation for particular purposes.

Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of obligation can be measured reliably. Expenditure is classified under charitable activity rather than the type of expense, in order to provide more useful information to users of the financial statements.

Charitable activity costs comprise both direct expenditure attributable to the activity, and support costs relating to these activities.

Governance costs include the costs attributable to the Foundations compliance with constitutional and statutory requirements, including audit and legal expenditure.

As The Pret Foundation is unable to reclaim any of the Value Added Tax (VAT) that it incurs, all expenditure in these financial statements in relation to its activities is shown inclusive of any VAT which cannot be recovered.

Fixed assets

Tangible fixed assets are initially recorded at cost and subsequently measured at cost, net of depreciation and any impairment losses. Tangible fixed assets with a cost price in excess £1,000 are capitalised and all other expenditure is charged to the statement of financial activities.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following basis:

Fixtures, fittings and equipment

over 3 years on cost

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 asset and is credited or charged to statement of financial activities.

19

THE PRET FOUNDATION

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

2 Accounting policies (continued)

Impairment of fixed assets

An assessment is made at each reporting date of whether there are indications that a fixed asset may be impaired or that an impairment loss previously recognized has fully or partially reversed. If such indications exist, the Trust estimates the recoverable amount of the asset.

Shortfalls between the carrying value of fixed assets and their recoverable amounts, being the higher of fair value less costs to sell and value-in-use, are recognised as impairment losses. Impairment losses are recognised in statement of financial activities.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Reversals of impairment losses are recognised in statement of financial activities. On reversal of an impairment loss, the depreciation is adjusted to allocate the asset’s revised carrying amount (less any residual value) over its remaining useful life.

Financial instruments

The Foundation only has financial assets and liabilities of a kind that qualify as basic financial instruments and are not considered to be of financial nature. Such financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Debtors

Other debtors which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price. Other debtors are subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

Cash at bank and in hand

Cash at bank and in hand includes cash and monies on short term deposits at the bank, other short-term liquid investments with original maturities of three months or less.

Creditors

Creditors 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 are normally recognised at their settlement amount.

Taxation

The Foundation is a registered charity and accordingly is exempt from taxation on its income and gains where they are applied for charitable purposes.

Pension

For defined contribution schemes the amount charged to the Statement of Financial Activities is the recharge of contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.

3 Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There are no areas of judgement to note.

20

THE PRET FOUNDATION

4

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation

The assessment of the useful economic lives and the method of depreciating tangible fixed assets requires some estimation. Depreciation is charged to the Statement of Financial Activities based on the useful economic life selected, which requires an estimation of the period and profile over which the Foundation expects to consume the future economic benefits embodied in the assets.

Analysis of income

Total Total
2023 2022
£ £
Donations
Donations received 1,453,071 1,477,298

5

Analysis of expenditure incurred by The Pret Foundation

The Charity fulfilled its charitable purposes by picking up unsold food from Pret A Manger shops throughout the UK and delivering it to other charities that assist with the relief of poverty. In other instances the Foundation made cash grants as the Trustees saw fit. The accounts do not include the monetary value of the unsold food collected and distributed from the Pret A Manger shops as the Trustees believe that the food has no monetary value by virtue of it being unsold. Comparative figures are included in note 16.

(a) Charitable activities

Food
distributions
£
Gifts and donations
-
(See note 5c)
Food delivery costs
495,407
Apprenticeship costs
-
Shelter costs
-
Ukraine Employment
Programme
-
Support costs (See
note 5(b))
154,490
649,897		 The Rising
Star &
Shooting
Stars
programmes
£
-
-
345,398
-
21,766
285,844
653,008		 Cash,
Equipment
& Food
donations
£
216
-
-
-
-
98,195
98,411		 Shelter
£
-
-
-
-
-
26,348
26,348		 Total
2023
£
216
495,407
345,398
-
21,766
564,877
**1,427,664 **		 Total
2022
£
249,920
765,851
180,657
47,030
126,987
473,874
1,844,319

21

THE PRET FOUNDATION

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

5 Analysis of expenditure incurred by The Pret Foundation (continued)

(b) Support costs

Support costs are allocated on a basis consistent with the activities of the Charity. Governance costs amounting to £32,175 (2022: £34,727) for legal, audit and accounting fees are included in above.

The Rising
Star & Cash,
Shooting Equipment
Food Stars & Food Total Total
distributions Programmes Donations Shelter 2023 2022
£ £ £ £ £ £
Staff Costs 92,326 221,582 36,930 18,465 369,303 330,075
(See note 6)
Team Expenses 1,499 3,597 600 300 5,996 10,621
Bank Charges 369 369 369 46 1,153 2,191
Audit & Accounting
Fees 9,888 9,888 9,888 1,236 30,900 31,500
Consultancy Costs - - - - - 5,000
Marketing costs &
donations platform 49,866 49,866 49,866 6,233 155,831 93,669
Other Costs 542 542 542 68 1,694 818
----------------- ----------------- ----------------- ----------------- ----------------- -----------------
154,490 285,844 98,195 26,348 564,877 473,874
============ ============
 ============ ============ ============ ============

22

THE PRET FOUNDATION

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

5 Analysis of expenditure incurred by The Pret Foundation (continued)

(c) Gifts and donations

(c) Gifts and donations
The Foundation has made the following gifts of £5,000 or
more:
The 999 Club
Salford Loaves & Fishes
240 Project
Shelter from the Storm
Genesis Trust
AKT
Off the Fence Trust
Barnabas
Bridges Project
Bethany Christian Trust
InHope
St John of God Hospitaller Services
St Stephens The Manna
The Upper Room
St Cuthbert's Centre
The Margins Project
Brixton Soup Kitchen
The Vineyard Arches Trust
C4WS
Street Connect
D.E.C.
Other amounts less than £5,000
Total		 No of
gifts
2023
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1
216
1
216		 No of
gifts
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
22		 2022
£
10,694
10,000
10,000
10,000
10,000
10,000
11,000
10,160
7,000
10,500
10,000
9,750
11,000
10,143
10,000
10,000
5,000
10,000
10,000
10,000
50,000
4,673
249,920

23

THE PRET FOUNDATION

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

6 Analysis of staff costs and numbers

Total staff emoluments for the year were as follows:

Wages and salaries
Social security costs
Pension contributions		 2023
£
323,856
35,477
9,970
369,303		 2022
£
286,850
32,732
10,493
330,075

These costs relate to the reimbursement of wages and salaries by the Foundation to Pret A Manger (Europe) Limited, for the time incurred by employees of Pret A Manger (Europe) Limited on the Foundation’s activities.

The wages and salaries of £323,856 (2022: £286,850) are paid by Pret A Manger (Europe) Limited for the employees that incurred time on the Foundation's activities.

The average number of employees whose wages were recharged to the Foundation during the year were 7 (2022: 8).

1 employee received emoluments of £60,000 to £70,000 in the year (2022: 1).

7 Trustees’ remuneration, expenses and donations and costs of key management personnel

No Trustee received any remuneration or payment for expenses during the year (2022: £Nil). Trustees’ donations received during the year totalled £4,077 (2022: £10,000).

The Foundation considers that the only key management are the Trustees which includes the Chief Executive Officer of Pret A Manger, and these personnel are not remunerated during this year or the prior year by the Foundation.

8 Auditors remuneration

Fees payable to Haysmacintyre LLP and its associates in respect of both audit and non-audit services are as follows:

Audit remuneration including VAT – 2023 audit
Audit remuneration including VAT – 2022 audit
All other non-audit services		 2023
£
25,680
-
5,220
30,900		 2022
£
-
24,000
5,400
29,400

24

THE PRET FOUNDATION

FOR THE YEAR ENDED 31 DECEMBER 2023

NOTES TO THE ACCOUNTS

9. Tangible fixed assets

10
Debtors
Other debtors
Accrued income
11
Creditors: amounts falling due within one year
Trade creditors
Accruals
Cost
At 1 January 2023
Additions
At 31 December 2023
Depreciation and impairment
At 1 January 2023
Charged in the year
At 31 December 2023
Carrying amount
At 31 December 2023
At 31 December 2022		 Fixtures,fittings
& equipment
£
304,004
65,223
369,227
304,004
16,793
320,797
48,430		 Fixtures,fittings
& equipment
£
304,004
65,223
369,227
304,004
16,793
320,797
48,430		 2022
£
638,957
7,456
646,413
2022
£
125,000
30,500
155,500
Total
£
304,004
65,223
369,227
304,004
16,793
320,797
48,430
-
2023
£
511,245
4,152
515,397
2023
£
33,805
30,900
64,705
-

25

THE PRET FOUNDATION

NOTES TO THE ACCOUNTS

YEAR ENDED 31 DECEMBER 2023

12 Related party transactions

The main related party to the Foundation is Pret A Manger (Europe) Limited, a company which operates a chain of food retain outlets across the United Kingdom. Donations during the year were from Pret A Manger (Europe) Limited. The value of donations received via Pret A Manger (Europe) Limited are £939,703 (2022: £830,054). The Trustees are selected from the majority of senior management of Pret A Manger (Europe) Limited.

During the year, the Foundation was charged £369,303 (2022: £330,074) in salary costs, for time incurred by Pret A Manger (Europe) Limited employees on the Foundation’s activities. During the year Pret A Manger (Europe) Limited also made payments on behalf of The Pret Foundation of costs which were then recharged to the Foundation of £65 (2022: £408) and at 31 December 2023 the Foundation was owed by Pret A Manager (Europe) Limited £449,124 (2022: £638,958).

13 Ultimate controlling party

The trustees do not consider that there is any one controlling party.

14 Reconciliation of net income to net cashflow from operating activities

15
Statement of Funds
1 January
2023
Income
Expenditure
£
£
£
Unrestricted
1,003,627
1,450,571
(1,425,164)
Restricted
The Rising
Star
Programme
-
2,500
(2,500)

Total Funds
1,003,627
1,453,071
(1,427,664)
Net income for the reporting period
Adjustments for:
Depreciation
Investment income
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash (used in)/provided by operating activities		 Net
Movement
£
25,407
-
25,407		 2023
£
25,407
16,793
-
131,016
(90,795)
31 December
2023
£
1,029,034
-
2022
£
(367,021)
47,029
-
(334,221)
4,235
(649,978)
82,421
Transfers
£
-
-
-
1,029,034

26

THE PRET FOUNDATION

NOTES TO THE ACCOUNTS

YEAR ENDED 31 DECEMBER 2023

Comparative statement of funds

Unrestricted
Restricted
UEP
The Rising
Star
Programme
Total Funds		 1 January
2022
£
1,370,648
-
1,370,648		 Income
£
1,312,572
114,726
50,000
1,477,298		 Expenditure
£
(1,679,593)
(114,726)
(50,000)
(1,844,319)		 Net
Movement
£
(367,021)
-
(367,021)		 31 December
2022
£
1,003,627
-
1,003,627

Ukraine (UEP) – Due to the Russian invasion of Ukraine, TPF launched the Ukrainian Employment Programme in April 2022 and recruited over 250 people (mainly women) over an 8-month period with nearly 80% still working for Pret. The UEP also provided financial support in the way of travel costs, hardship funds, running English lessons and counselling sessions. 50% of the total cost for 2022 was covered by JAB Holdings which was received in December 2022.

Rising Star Programme – the Rising Stars programme has been running for many years working with our charity partners in providing job opportunities for homeless or those experiencing homelessness.

27

THE PRET FOUNDATION

NOTES TO THE ACCOUNTS

YEAR ENDED 31 DECEMBER 2023

16a. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES - 2022

Income from:
Donations
Investment
income
Total
Expenditure on:
Charitable
activities
Total
Net movement
in funds
Reconciliation
of funds:
Total funds
brought forward
Total funds
carried forward		 Restricted
funds
2022
£
164,726
-
164,726
164,726
164,726
-
-
-		 Unrestricted
funds
2022
£
1,312,572
-
1,312,572
1,679,593
1,679,593
(367,021)
1,370,648
1,003,627		 Total
funds
2022
£
1,477,298
-
1,477,298
1,844,319
1,844,319
(367,021)
1,370,648
1,003,627

28

THE PRET FOUNDATION

NOTES TO THE ACCOUNTS

YEAR ENDED 31 DECEMBER 2023

16b. Charitable activities - comparative figures

Food
distributions
£
Gifts and
donations
-
Food delivery
costs
765,851
Apprenticeship
costs
-
Shelter costs
-
Ukraine
Employment
Programme
-
Support costs
127,791
893,642		 The Rising
Star &
Shooting
Stars
programmes
£
-
-
180,657
-
126,987
230,000
537,644		 Cash,
Equipment
& Food
donations
£
249,920
-
-
-
93,721
343,641		 Shelter
£
-
-
-
47,030
-
22,362
69,392		 Total 2022
£
249,920
765,851
180,657
47,030
126,987
473,874
1,844,319

16c. Support costs – comparative figures

The Rising
Star & Cash,
Shooting Equipment
Food Stars & Food Total
distributions Programmes Donations Shelter 2022
£ £ £ £ £
Staff Costs 82,519 181,541 49,511 16,504 330,075
Team Expenses 2,655 5,842 1,593 531 10,621
Bank Charges 701 701 701 88 2,191
Audit &
Accounting Fees		 10,080 10,080 10,080 1,260 31,500
Consultancy
Costs		 1,600 1,600 1,600 200 5,000
Marketing costs &
donations
platform		 29,974 29,974 29,974 3,747 93,669
Other Costs 263 263 259 33 818
----------------- ----------------- ----------------- ----------------- -----------------
127,792 230,001 93,718 22,363 473,874
============ ============ ============ ============ ============

29