Docusign Envelope ID: B6466A3E-EFDF-8D94-8038-E7042D34AD08
Redthread Youth Limited Company no 03131121 Charity no 1051260
Annual Report and Accounts For the year ended 31 August 2025
Classification : Confidential
Docusign Envelope ID: B6466A3E-EFDF-8D94-8038-E7042D34AD08
Contents
About Redthread ........................................................................................................................... 3 Legal & administrative information ........................................................................................... 4 Trustees’ report (incorporating Directors’ report) for the year ended 31 August 2025 ........ 7 Independent auditor’s report to the members of Redthread Youth Limited ....................... 12 Financial Statements ................................................................................................................... 16 Statement of financial activities ............................................................................................. 16 Balance sheet ......................................................................................................................... 17 Statement of cash flows ....................................................................................................... 18 Notes to the Financial Statements .......................................................................................... 19
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About Redthread
Redthread is a multi-award-winning charity with over 20 years’ experience of delivering pioneering youth work in hospitals and other health settings. We work across 10 hospitals in London and Birmingham with 11–25-year-olds who are affected by grooming, sexual and criminal exploitation, violence, emotional and physical harm, mental health issues, domestic violence and modern slavery. We also support children and young people in the online space to reduce the impacts of violence, and with those experiencing a range of health conditions, who are vulnerable and in need.
We also train NHS staff so that they can identify, and better support children and young people affected by violence. We amplify the voices of children and young people and use our evidence and insights from working with them to adapt and innovate our work, support service improvement, and influence regional and national policy and practice.
Our purpose
Redthread’s purpose is to be present where children and young people need us most. We support young people facing adversity related to mental health, sexual violence and exploitation as well as those who continue to be caught up in youth violence. We amplify their voices so that systems and services are better able to meet their needs and support them towards leading healthier, safer and happier lives.
Our vision
A society where all young people live healthy, safe, and happy lives.
Our mission
To empower young people to thrive as they navigate the challenging transition to adulthood by integrating trauma-informed youth work into the health sector.
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Legal & administrative information Company Name: Redthread Youth Limited Charity Number: 1051260 Company registration number: 03131121 Registered office: 27 Pear Tree Street, London EC1V 3AG Trustees: Paula McDonald CBE (resigned 31 May 2025) Lawrence Bate (resigned 31 May 2025) Emer Sutherland Andrew Canniford Jeffrey Jacobs (resigned 31 May 2025) Kasuba Ng’ona (resigned 31 May 2025) Nigel Richards (appointed 01 June 2025) Ufuoma Irene Sobowale (resigned 31 May 2025)
Redthread Transition Director: Kate Wareham (appointed 12 August 2024) Auditors: Moore Kingston Smith LLP, 6th Floor, 9 Appold Street, London EC2A 2AP Bankers: Lloyds Bank plc, Camberwell Green branch Camberwell Green London SE5 7AB
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Introduction from Nigel Richards, Trustee
Over the past three decades, Redthread has been a lifeline for thousands of children and young people affected by violence and experiencing some of life’s toughest challenges. From our earliest youth projects in London to pioneering the UK’s first hospital-based youth violence intervention services, our journey has always been driven by a simple but powerful belief: every young person deserves to live a safe, healthy, and happy life.
A pivotal moment
Yet, like many charities in the current climate, we faced significant financial pressures that threatened our sustainability and ability to deliver our services. In response to these challenges, we explored ways to protect the vital work we’re doing. That’s why last year marked a pivotal moment in Redthread’s history; we sought new delivery partnerships and following a competitive, best value assessment, we took the decision to merge with Catch22 Charity Limited. We are delighted that this partnership will safeguard the future of Redthread’s services and strengthen our impact.
Catch22 shares our mission, values, and commitment to young people. We’ve already collaborated on powerful programmes such as The Social Switch Project where we’ve seen firsthand what’s possible when our strengths are combined. As part of Catch22, young people supported by Redthread will also be able to access the range of other Catch22 services, including employability programmes, drug and substance use services and community-based child exploitation support.
The merger that started 12 August 2024 with Catch22 was completed this financial year and Redthread’s activities are now done through Catch22. Redthread became fully integrated with Catch22 on 1 April 2025. Redthread’s Youth Violence Intervention Programme continues across hospitals in London and Birmingham, our Young Women’s programme is providing specialist support to vulnerable young women and girls, and our trauma-informed, youth-led approach continues to shape the thinking of both practitioners and policy makers.
Redthread’s hospital-based youth work was featured in a range of national media. ITV National News and Sky News pieces showcased Redthread’s trauma informed model in November 2025, with youth workers embedded in A&E departments to support young people at moments of crisis. This coverage helped elevate public and policymaker understanding of the role of health-led, early intervention approaches in preventing serious violence and repeat harm.
Teachable, reachable moments
At Redthread we invented the concept of the teachable, reachable moment – working with young people when they’re at their most vulnerable. In doing so, we’ve not only been able to have significant immediate impact but also in many cases prevent those young people returning to a world of fear and risk.
Retaining our identity
We know how strong the Redthread brand is, built over two decades through the life changing, essential work we do. For this reason, we will retain our trusted name and identity within the Catch22 family. Ultimately, this merger is safeguarding what matters most: the services that young people rely on, and the frontline teams who deliver them.
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Meeting increasing need
We know that young people’s needs are growing more complex and more urgent; Recent figures show that half of teenagers in England and Wales have witnessed or been victims of violence. Redthread, as part of Catch22, is in a strong position to rise to this challenge with renewed energy and purpose. With the current Government prioritising violence reduction, we are ready to share our insight and help drive changes to the system that will benefit the young people we work with.
Nothing short of outstanding
Thank you to our dedicated staff, supporters, and partners who have stood by us this year. Thank you to our past CEO and executive of Redthread and the CEO and Executive Team at Catch22 who have worked collaboratively with the Board to steer through and navigate this merger, bringing together a diverse mix of skill and expertise and huge commitment.
Specifically, to Redthread staff, we want to personally thank you for everything you do. You help young people in their most vulnerable moments to navigate trauma, build trust, find their voice, and see a future filled with hope. Your expertise as youth workers in the hospital setting is unique and is valued highly by those you work with, for and by others across our sector. You really are nothing short of outstanding.
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Trustees’ report (incorporating Directors’ report) for the year ended 31 August 2025
Overview
Following a year of transition in 2022-23, and the continuing challenges faced by charities and communities across the UK; including challenges in securing new sustainable funding, rising costs due to the impact of inflation and the increasing volume and complexity of needs of those we work with the trustees decided to review and reflect on the best way to protect our vital work with children and young people and came to the conclusion that the most sustainable way forward, in the current economic and social climate, would be to seek a new way of working, and to this end, after extensive consideration of a range of options, the trustees made the decision to merge with Catch22 Charity Ltd (Catch22), a charity which is focussed on building resilience and aspiration in people of all ages and communities across the UK.
Our two organisations have strongly aligned missions and values, and Redthread has previously worked in a successful partnership with Catch22 on influencing policy as well as establishing and co-delivering The Social Switch Programme.
Therefore, following a thorough process of discovery and due diligence, Redthread formally became part of the Catch22 group in August 2024. A new Transition Board, incorporating both existing and new trustees, was established to ensure that the merger progressed smoothly and with as little disruption as possible to the important work we continue to deliver. Redthread was fully integrated into Catch22 before the end of this financial period and Redthread ceased to operate as a separate entity, but its brand and work will continue.
We thank all our funders and donors, all of whom have been kept informed during this process and who have been incredibly supportive of this decision.
The intention for the future is to use our collective strength to both maintain and grow the life-changing work already taking place, and we look forward to realizing the full potential of this new partnership.
As at the end of the financial year Redthread’s work is fully carried out through Catch22 and the legal entity and charitable organization Redthread Youth Limited does not carry out any activities.
Governance
Redthread Youth Limited is a registered charity and a company limited by guarantee in England and Wales; its objects and powers are set out in its Memorandum and Articles of Association. The members of the charitable company are also the directors/trustees. The charitable company operates under the name “Redthread.”
Before the end of the financial year ending 31 August 2025, Redthread has formally completed the merger with Catch 22 Charity Limited (registered charity no 1124127 and a company limited by guarantee 06577534). We worked with our funders and partners to manage the transfer of all these key relationships to the new entity during the financial year.
A transition board has been established to administer the charity and met on a bi-monthly basis. As part of the transition process, Catch22 has also been registered as a person with significant control and has the right to appoint or remove directors.
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The transition board was chaired by Redthread’s chair of trustees, Paula McDonald CBE and comprises two trustees from the previous Redthread board – Emer Sutherland (Clinical Director for Emergency Care at King’s College Hospital) and Lawrence Bate (formerly Director of Strategy and Impact at the British Heart Foundation), two trustees from Catch 22’s board – Jeff Jacobs and Irene Sobowale and two members of Catch22’s senior management team – Andy Canniford and Kasuba Ng’ona.
Following the successful transition, Redthread trustees resigned and a new member was appointed.
In place of the Redthread Executive team, who left the organisation as part of the merger process, the trustees have seconded Kate Wareham, Catch22’s Strategic Director for Young People, Families and Communities to lead the team as Redthread’s Transition Director, and alongside other Catch22 seconded colleagues, she manages the day-to-day operations of the charity, alongside Redthread’s existing Service Leads, Programme Managers and Team Leaders.
To further enable Redthread to run effectively and efficiently, Catch22 now provide all essential support services to Redthread including finance, fundraising, marketing and communications, data & insights, policy and influencing, business development, and human resources.
The transition board has established appropriate controls and reporting mechanisms to ensure that the leadership team operates within the powers delegated to it.
The trustees, who are the directors for the purposes of company law, present their statutory report, including plans for the future, together with the Redthread’s financial statements for the period ending 31 August 2025.
The report has been prepared in accordance with applicable law and UK accounting standards (UK Generally Accepted Accounting Practice) and in accordance with the Charities Act 2011 and Part 15 of the Companies Act 2006.
The financial statements have been prepared in accordance with the accounting policies set out on pages 18-20. A full statement of trustees’ responsibilities can be found below.
The trustees’ report includes a description of the activities undertaken during the period to further Redthread’s charitable purposes, and the trustees are satisfied that such activities provide public benefit.
Activities and Impact
Our flagship programmes include our Youth Violence Intervention Programme (YVIP), our Young Women’s Service and our services with children and young people with multiple needs and vulnerabilities across eight emergency departments and major trauma centres in London, and Birmingham.
Redthread also delivers a number of other health related programmes including a counselling service in Birmingham and a project working with young adults dealing with liver disease in South East London, as well as continuing its partnership working with Catch 22 on the Social Switch programme, which aims to switch the narrative on how social media’s relationship with violence affecting young people in understood, tackled and solved.
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Financial Review
Total income received in the year came to £1,394,160 (17[t ] month period to 31 August 2024 - £4,466,428). Some £89,999 (6.4%) of this was unrestricted and included unrestricted grants from trusts and foundations, donations from individual and corporate donors, gift aid claims and bank interest. £224,882 in restricted grants for core costs was also received in this period, whilst restricted income from charitable activities came to £1,079,279 (77.4% of total income).
The largest funder during this period, providing 66% of our income for our charitable activities, was London’s Violence Reduction Unit, who continue to support Redthread’s vital work in hospitals, working with vulnerable young people who are victims of youth violence. In addition, the VRU funds the Social Switch programme, which we continue to deliver in partnership with Catch 22.
Overall, 66% (£1,079,279) of Redthread’s income during this period came from statutory and institutional funders (local government and NHS funders), whilst 22% (£298,632) came from a wide range of charitable trusts and foundations. Of the remaining amount, £16,249 came from individual and corporate supporters, and a small amount from other sources (e.g. bank interest).
Total expenditure came to £1,040,553 (17 months period to 31 August 2024 - £5,254,175), leaving a surplus for the year of £353,607 (17 months period to 31 August 2024 deficit of £787,747).
As at 31 March 2025 Redthread’s unrestricted reserves stood at £839,477, whilst a further amount of £403,418 remained in restricted funds. Those were transferred to the parent company on 1 April 2025.
Risk management
The trustees confirm that they have identified the main risks to which the Charity is exposed, including the volatility of sustainable income streams which ultimately led to the decision to proceed with the merger with Catch22. As part of the transition process, systems and procedures have been maintained and integrated with Catch22 in order mitigate other ongoing risks that have been identified as part of the due diligence and discovery processes that have taken place as part of the merger.
Statement on fundraising
At Redthread we have always greatly valued the support we receive from individuals, organisations, companies, and funders. Redthread is registered with the Fundraising Regulator and abides by the Code of Fundraising Practice. We continue to uphold the four values of the Code of Fundraising Practice; our fundraising is legal, open, honest, and respectful.
Redthread's fundraising and income generation is now led jointly by Catch22’s Director of External Affairs and Partnerships (voluntary income including trusts, foundations and individual giving) and the Director of Business Development (contracts and statutory funding) with support from colleagues and wider networks.
Our income comes from a wide variety of sources; however, our typical activities include:
-
Applying for government funding and influencing opportunities for future funding and commissioning.
-
Applying for funding from grant-making trusts, foundations or other organisations
-
Advertising the impact of our work on social media, in mainstream print and broadcast media, on our website and through other appropriate channels
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- Communicating with our supporters and individuals who have asked to be kept informed about our work
We do not:
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Conduct regular gift, face-to-face fundraising on the street
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Canvas door-to-door
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Send out direct marketing mail to people unknown to us
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Contact former service-users or their families regarding fundraising activity unless they have specifically asked to be contacted.
We check funding sources to ensure they are appropriate and in line with Redthread’s values. We have never received any complaints about our fundraising activities, and as part of the transition to the merger with Catch22 we will review our fundraising processes and activities to ensure they remain compliant.
Public benefit
In setting objectives and planning activities during this transition period, the trustees confirm that they have complied with their duty under Section 17 of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit.
Statement of trustees’ responsibilities
The trustees (who are also directors of Redthread Youth Limited for the purposes of company law) are responsible for preparing the trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (UK Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company for that period.
In preparing these financial statements, the trustees are required to:
Select suitable accounting policies and then apply them consistently.
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Observe the methods and principles in ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting standard applicable in the United Kingdom and Republic of Ireland (FRS 102);
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Make judgements and estimates that are reasonable and prudent;
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State whether applicable United Kingdom Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The trustees are also responsible for ensuring that adequate accounting records are kept that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006.
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They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Each of the trustees confirms that:
-
So far as the trustee is aware, there is no relevant audit information of which the charitable company’s auditor is unaware: and
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The trustee has taken all the steps that he/she ought to have taken as a trustee to make himself/herself aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.
The confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.
The trustees are responsible for the maintenance and integrity of financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Nigel Richards
Trustee
20 May 2026
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Independent auditor’s report to the members of Redthread Youth Limited
Opinion
We have audited the financial statements of Redthread Youth Limited (the ‘charitable company’) for the year ended 31 August 2025 which comprise the Statement of Financial Activities, the balance sheet, the statement of cash flows, and the notes to the financial statements, including the principle 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:
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Give a true and fair view of the state of the charitable company’s affairs as at 31 August 2025 and of its income and expenditure for the year then ended;
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Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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Have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of matter – financial statements prepare on a basis other than going concern
We draw your attention to note 1.3 of the financial statements which explains that the charity has transferred all activities, assets and liabilities to parent charity Catch 22 Charity Limited on 1 April 2025. As the charity ceased operations, the trustees do not consider it to be appropriate to adopt the going concern basis of accounting in preparing of the financial statements. Accordingly, the financial statements have been prepared on a basis other than going concern as described in note 1.3. Our opinion is not impaired in respect of this matter.
Other information
The other information comprises the information included in the Trustees’ Report and Financial Statements, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with the 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
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required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken during the audit:
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the information given in the strategic report and the trustees’ report, which is also the directors’ report for the purposes of company law, for the financial period for which the financial statements are prepared is consistent with the financial statements; and
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the trustees’ report, which is also the directors’ report for the purposes of company law has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
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Adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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The financial statements are not in agreement with the accounting records or returns; or
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Certain disclosures of trustees’ remuneration specified by law are not made; or
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We have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of 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
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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.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
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.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.
Our approach was as follows:
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We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council
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We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.
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We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
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We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
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Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. 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.
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Use of this report
This report is made solely to the charity’s trustees, 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 charity’s members those matters that 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 and the charity’s trustees as a body, for our audit work, or the opinions we have formed.
James Saunders, Senior Statutory Auditor
For and on behalf of
Moore Kingston Smith LLP
Statutory Auditor
6th Floor, 9 Appold Street, London EC2A 2AP
26/5/2026
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Financial Statements
REDTHREAD YOUTH LIMITED
TRADING AS "REDTHREAD"
(a company limited by guarantee)
Statement of financial activities For the year ended 31 August 2025
| Notes Income Grants & donations 2 Charitable activities 3 Other 4 Total income Resources expended Charitable activities 5 Raising funds 6 Transfer to Catch22 Charity Limited Total resources expended Net incoming/(outgoing) resources for the period Transfers between funds Net movement in funds 7 Total funds brought forward Total funds carried forward |
Unrestricted funds Restricted funds 12 months to 31-Aug-25 Total 17 months to 31-Aug-24 Total £ £ £ £ 85,160 224,882 310,042 783,706 - 1,079,279 1,079,279 3,679,848 4,839 - 4,839 2,874 |
|---|---|
| 89,999 1,304,161 1,394,160 4,466,428 |
|
| - 1,040,553 1,040,553 4,982,052 - - - 272,123 839,477 403,419 1,242,896 - |
|
| 839,477 1,443,972 2,283,449 5,254,175 |
|
| (749,478) (139,811) (889,289) (787,747) 141,749 (141,749) - - |
|
| (607,729) (281,560) (889,289) (787,748) 607,729 281,560 889,289 1,677,036 |
|
| - - - 889,289 |
The notes on pages 19-28 form an integral part of these financial statements
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,
REDTHREAD YOUTH LIMITED
TRADING AS "REDTHREAD"
(a company limited by guarantee)
Balance sheet
| as of 31 August 2025 Notes Fixed assets Tangible assets 8 Current assets Debtors 9 Cash at bank and in hand 10 Liabilities Creditors: amounts falling due within one year 11 Net current assets Total assets less current liabilities Total net assets Funds Unrestricted funds 12a Restricted income funds 12b Total funds |
31 August 2025 £ £ - - - - - - - - - - - |
31 August 2025 £ £ - - - - - - - - - - - |
31 August 2024 £ £ 11,938 394,519 609,569 1,004,088 (126,737) 877,351 889,289 889,289 607,729 281,560 889,289 |
31 August 2024 £ £ 11,938 394,519 609,569 1,004,088 (126,737) 877,351 889,289 889,289 607,729 281,560 889,289 |
|---|---|---|---|---|
| - - |
1,004,088 (126,737) |
|||
| - | 889,289 | |||
| - | 889,289 | |||
| - - |
607,729 281,560 |
|||
| - | 889,289 |
The financial statements were approved and authorised for issue by the board on 20 May 2026.
Nigel Richards Trustee
The notes on pages 19-28 form an integral part of these financial statements
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REDTHREAD YOUTH LIMITED TRADING AS "REDTHREAD" (a company limited by guarantee)
| Statement of cash flows For the year ended 31 August 2025 Notes Cash flows from operating activities £ Cash generated from operations A Cash flows from investing activities Purchase of new ICT equipment - Interest received 3,738 Transfer of Cash to Catch 22 Charity Limited Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of the year Net movement in funds (as per the statement of financial activities) Adjustments for: Depreciation charge Interest receivable (Increase) / decrease in debtors Increase/ (decrease) in creditors Transfer of assets to Catch 22 Charity Limited Net cash provided by operating activities B. Analysis of cash and cash equivalents Cash at bank and in hand |
12 months to 31 August 2025 £ £ 247,215 (8,353) 9,640 (860,522) (609,569) 609,569 - 2025 £ 353,607 2,146 (3,738) (147,102) 42,302 (247,215) - 2025 £ - |
17 months to 31 August 2024 £ (504,578) - |
|---|---|---|
| (503,291) 1,112,860 |
||
| 609,569 | ||
| 2024 £ (787,747) 12,707 (9,640) 638,534 (358,432) - |
||
| (504,578) | ||
| 2024 £ |
||
| 609,569 |
The notes on pages 19-28 form an integral part of these financial statements
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REDTHREAD YOUTH LIMITED
Notes to the financial statements for the year ended 31 August 2025
Notes to the Financial Statements
1. Principal accounting policies
The principal accounting policies are summarised below.
The accounting policies have been applied consistently throughout the period covered by these statements and the preceding period.
1.1 Basis of accounting
The financial statements are prepared under the historical cost convention and in accordance with the charities SORP as specified in ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The charity constitutes a public benefit entity as defined by FRS102. The financial statements are presented in sterling and are rounded to the nearest pound.
1.2 Critical accounting estimates and areas of judgement
- Preparation of the accounts requires the trustees and management to make judgements, estimates and assumptions regarding the assets and liabilities of the charity. These estimates and associated assumptions are based on historical experience but also a consideration of the future funding landscape and an economic climate that continues to be challenging and other factors that are considered to be relevant, including the progress that has been made towards merging with Catch22.
The estimates and assumptions are reviewed on an ongoing basis, and the trustees do not consider there are any critical judgements or sources of estimation uncertainty requiring disclosure beyond the accounting policies listed above.
1.3 Going concern
On 1 April 2025 2025, the charity has transferred, in accordance with the transfer agreement signed by both parties, all activities, assets and liabilities as a going concern to Catch 22 Charity Limited (a company limited by guarantee, no 06577534 and a registered charity , no 1124127, its parent charity), and in these circumstances the trustees do not deem it appropriate to continue to adopt the going concern basis for the preparation of these financial statements.
Therefore, the financial statements have been prepared on a basis other than that of a going concern. There has been no change to the recognition and measurement of assets, liabilities, income or expenditure as a result of adopting a basis different that going concern. No provision or impairment of assets have been required as a result of changing the basis of preparation.
1.4 Income recognition
All incoming resources are included in the statement of financial activities when the charity is entitled to the income, has met any performance conditions attached to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to categories of income:
Voluntary income is received by way of grants, donations and gifts and is included in full in the statement of financial activities when receivable. Grants where entitlement is not conditional on the delivery of a specific performance by the charity are recognised when the charity becomes unconditionally entitled to the grant.
19
Classification : Official
Docusign Envelope ID: B6466A3E-EFDF-8D94-8038-E7042D34AD08
REDTHREAD YOUTH LIMITED
Notes to the financial statements for the year ended 31 August 2025
Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included.
Grant income that has been received to fund work to be undertaken by the charity over a specified time period is recognised in the statement of financial activities as the programme is delivered. For accounting purposes, the extent of completion of a project is equated to the proportion of expenditure incurred. Any amounts received for activities not yet delivered are treated as deferred income. Where no time period is defined, restricted funds are accounted for as income when they are receivable.
1.5 Expenditure and the basis of apportioning costs
Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be recovered, as the charity is not registered for VAT and is reported as part of the expenditure to which it relates.
Charitable expenditure comprised those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
In respect of apportioning overheads and other central costs to projects, Redthread operates a full cost recovery model wherever possible. This means that each project is required to contribute towards those central costs to ensure that the charitable company’s infrastructure is maintained at an appropriate level to ensure the sustainability of each project.
The contributions applied to each project are calculated using a range of methods:
-
for most projects, a contribution is applied that equates to 15% of the total remuneration of the staff team working on that project to cover management and administration costs, and a further 5-10% to cover overheads. The precise percentage applied may vary from project to project, following initial budget negotiations with specific project funders.
-
In addition, some project funding includes a fixed contribution to management and/or overhead costs as a specific part of the budget, especially where there is significant input from the members of the central team, or where members of the project team are based at head office. The amount is normally agreed as a fixed sum per quarter/annum.
-
A review of the methodology of apportioning central costs was undertaken, and, from April 2024 onwards a revised approach was introduced which recognised that a proportion of head office costs should be re-classified as direct costs and apportioned accordingly.
-
The costs of fundraising comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes and includes the entire cost of employing the Head of Fundraising and all other members of the fundraising team.
-
Governance costs are the costs associated with the governance of the charitable company and its assets, and the costs associated with any strategic, as opposed to the day-to-day management of the charity’s activities. These are allocated to charitable activities.
1.6 Tangible fixed assets and depreciation
-
Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is provided at rates calculated to write off the residual value of each asset over its expected useful life, as follows:
-
Computers and other ICT equipment – 33.3% per annum;
-
Depreciation is applied to any purchase of assets costing more than £1000 where the cost is not covered by the funder.
20
Classification : Official
Docusign Envelope ID: B6466A3E-EFDF-8D94-8038-E7042D34AD08
REDTHREAD YOUTH LIMITED
Notes to the financial statements for the year ended 31 August 2025
1.7 Debtors
Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.
1.8 Cash at bank and in hand
Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of the acquisition.
1.9 Creditors and provisions
Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charitable company anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.
1.10 Pension costs
The pension charge represents payments made to the automatic enrolment workplace pension scheme provided by The People’s Pension and is charged to the Statement of Financial Activities in the period to which it relates.
1.11 Redundancy and termination costs
Any payments due to employees as a result of either redundancy processes or termination of employment following a negotiated process are recognised as an expense in the Statement of Financial Activities and a liability on the Balance Sheet at the point in time where the charitable company is committed to making such payment.
1.12 Unrestricted and Restricted funds
The unrestricted funds comprise those which are freely available for application towards meeting the charitable objectives of the charitable company at the discretion of the trustees.
The restricted funds are those whose application is limited by funder-imposed conditions and/or their use is restricted to a specified purpose. Expenditure of projects includes both direct costs attributable to each project and appropriate contributions to support costs. Any deficit incurred on any individual restricted fund is written off by transferring the relevant amount from unrestricted funds in the year in which the deficit occurs.
21
Classification : Official
Docusign Envelope ID: B6466A3E-EFDF-8D94-8038-E7042D34AD08
REDTHREAD YOUTH LIMITED
Notes to the financial statements for the year ended 31 August 2025
| 2. Income for core costs | 12 months to 31-Aug-25 Unrestricted Restricted Total £ £ £* |
17 months to 31-Aug- 24 Unrestricted Restricted Total £ £ £* |
|---|---|---|
| Trusts and Foundations: Supporters and Donations 3. Income from charitable activities Youth Endowment Fund – Evaluation Pilot Youth Endowment Fund – funds repayable Thread CRM – Digital Transformation Project Youth Violence Intervention Programme - London Major Trauma Centres (MTCs) Young Women’s Service Youth Violence Intervention Programme - Midlands Youth Violence Intervention Programme - London A&Es King's Adolescent Outreach Service King’s Young Adult’s Liver Service QE Hospital Woolwich Diabetes Transition Project Social Switch project Social Prescribing (Hackney and Nottingham) Direct Programme Support |
||
| 77,500 224,882 302,382 |
542,720 188,362 731,082 |
|
| 7,660 - 7,660 85,160 224.,882 310,042 |
52,624 - 52,624 |
|
| 595,344 188,362 783,706 31-Aug-24 Unrestricted Restricted Total £ £ £ - 147,215 147,215 - (61,109) (61,109) - 41,383 41,383 - 820,904 820,904 - 131,842 131,842 - 483,820 483,820 - 1,549,820 1,549,820 - 24,465 24,465 - 17,647 17,647 - 48,163 48,163 - 363,246 363,246 - 24,882 24,882 - 87,569 87,569 |
||
| 31-Aug-25 | ||
| Unrestricted Restricted Total £ £ £ - - - - - - - - - - 319,014 319,014 - 105,009 105,009 - 150,838 150,838 - 536,901 536,901 - - - - 30,882 30,882 - - - - 161,489 161,849 - - - 89,999 - 89,999 89,999 1,304,161 1,394,160* |
||
| - 3,679,848 3,679,848 |
22
Classification : Official
Docusign Envelope ID: B6466A3E-EFDF-8D94-8038-E7042D34AD08
REDTHREAD YOUTH LIMITED
Notes to the financial statements for the year ended 31 August 2025
| 4. Other income | 12 months to 31-Aug-25 Unrestricted Restricted Total £ £ £ 3,738 - 3,738 1,101 -1,101 - - - 4,839 - 4,839 12 months |
12 months to 31-Aug-25 Unrestricted Restricted Total £ £ £ 3,738 - 3,738 1,101 -1,101 - - - 4,839 - 4,839 12 months |
17 months to 31-Aug-24 Unrestricted Restricted Total £ £ £ 9,640 - 9,640 408 - 408 (7,174) - (7,174) |
|
|---|---|---|---|---|
| Bank interest Other income Funding returned on cancelled project |
||||
| 2,874 - 2,874 17 months to 31-Aug- 24 Unrestricted Restricted Total |
||||
| 5. Costs of charitable activities - by project | ||||
to 31-Aug- |
||||
| 25 Unrestricted Restricted Total |
||||
| £ £ £ |
£ £ £ |
|||
| Thread CRM – digital transformation project | - - - |
- 41,383 41,383 |
||
| Youth Violence Intervention Programme - London MTCs | - 255,892 255,892 |
- 1,001,523 1,001,523 |
||
| Young Women’s Service | - 143,764 143,764 |
- 95,325 95,325 |
||
| Youth Violence Intervention Programme - Midlands | - 147,568 147,568 |
- 691,749 691,749 |
||
| Youth Violence Intervention Programme - London A&Es | - 359,715 359,715 |
- 1,542,477 1,542,477 |
||
| King's Adolescent Outreach Service | - - - |
- 24,465 24,465 |
||
| King’s Young Adult’s Liver Service | - 28,329 28,329 |
- 18,261 18,261 |
||
| QE Hospital Woolwich Diabetes Transition Project | - - - |
- 49,815 49,815 |
||
| Social Switch Project | - 105,285 105,285 |
- 287,512 287,512 |
||
| Social Prescribing (Hackney & Nottinghamshire) | - - - |
- 32,783 32,783 |
||
| Direct Programme support | - - - |
- 106,294 106,294 |
||
| Other support costs | - - - |
811,079 279,385 1,083,291 |
||
| - 1,040,553 1,040,553 |
811,079 4,170,973 4,982,052 |
23
Classification : Official
Docusign Envelope ID: B6466A3E-EFDF-8D94-8038-E7042D34AD08
REDTHREAD YOUTH LIMITED
Notes to the financial statements for the year ended 31 August 2025
| 6. Cost of fundraising | 12 months to 31-Aug- 25 17 months to 31-Aug- 24 |
12 months to 31-Aug- 25 17 months to 31-Aug- 24 |
|---|---|---|
| Unrestricted Restricted Total |
Unrestricted Restricted Total |
|
| £ £ £ |
£ £ £ |
|
| Staffing (salaries, NI, pension) | - - - |
200,751 11,961 212,712 |
| Other costs | - - - |
55,575 3,836 59,411 |
| - - 272,123 |
256,326 15,797 272,123 |
|
| 7. Net movement in funds | 12 months to 31-Aug- 25 17 months to 31- Aug-24 |
|
| This is stated after charging: | £ £ |
|
| Staff costs_(see note 16)_ | 901,825 4,194,416 |
|
| Depreciation | 2,146 12,707 |
|
| Auditor's remuneration: | ||
| - statutory audit services | - 15,000 |
|
| - other services | - - |
24
Classification : Official
Docusign Envelope ID: B6466A3E-EFDF-8D94-8038-E7042D34AD08
REDTHREAD YOUTH LIMITED
Notes to the financial statements for the year ended 31 August 2025
| 8. Tangible fixed assets Cost At 1 September 2024 Additions Disposals Transfers to parent company At 31 August 2025 Depreciation At 1 September 2024 Charge for the year Disposals Transfers to parent company At 31 August 2025 Net book value At 31 August 2025 At 31 August 2024 |
ICT Vehicles Total £ £ £ 49,499 8,975 58,474 - - - - (8,975) (8,975) (49,499) - (58,474) |
|---|---|
| - - - |
|
| 37,561 8,975 46,536 2,146 - 2,146 (3,042) (8,975) (12,017) (36,666) - (36,666) |
|
| - - - |
|
| - - - |
|
| 11,938 - 11,938 |
During the year, Redthread Youth limited transferred all of its assets to Catch22 Charity Limited, its parent company (see note 1.3)
| 9. Debtors | 31-Aug-25 31-Aug-24 £ £ - 84,870 - 30,996 - 264,623 - 14,030 - 394,519 31-Aug-25 31-Aug-24 £ £ - 41,798 - 567,735 - 36 - 609,569 |
|---|---|
| Accounts receivable | |
| Prepayments | |
| Accrued income | |
| Other debtors | |
| 10. Cash & cash equivalents | |
| Current Accounts | |
| Interest-bearing account | |
| Pettycash floats | |
| 11. Creditors | 31-Aug-25 31-Aug-24 |
| £ £ |
|
| Accounts payable | - 20,938 |
| Accruals | - 10,424 |
| Deferred income | - 88,042 |
| Allowances | - 7,333 |
| - 126,737 |
25
Classification : Official
Docusign Envelope ID: B6466A3E-EFDF-8D94-8038-E7042D34AD08
REDTHREAD YOUTH LIMITED
Notes to the financial statements for the year ended 31 August 2025
| Movement on deferred income: | Movement on deferred income: | 31-Aug-25 31-Aug-24 £ £ 88,042 294,145 158,583 97,417 (93,667) (303.520) (152,958) - - 88,042 |
|---|---|---|
| Deferred income at 1 Sept 2024 | ||
| Amounts deferred during the year | ||
| Amounts released to income during the year | ||
| Amounts transferred 31 March 25 to Catch22 | ||
| Deferred income at 31 August 2025 | ||
| 12. Reconciliation of funds |
01-Sept-24 Income Resources expended Fund transfers Transfer to Catch22 31-Aug- 2025 |
|
| £ £ £ £ £ £ |
||
| a. Unrestricted funds | 607,729 89,999 - 141,749 (839,477) - |
|
| b. Restricted funds Youth Violence Intervention Programme: London Major Trauma Centres London A&Es The Midlands Young Women’s Service Other Programmes: King’s Young Adult Liver Service Social Switch Project |
01-Sept-24 Income Resources expended Fund transfers Transfer to Catch22 31-Aug- 2025 £ £ £ £ £ £ 3,378 319,041 (255,892) (45,968) (21,559) - 87,037 536,901 (359,715) (70,144) (194,079) - 78,895 150,838 (147,568) (21,224) (60,941) - 36,516 105,009 (143,764) 1,109 (1,128) - - 30,882 (28,329) (2,390) (163) - 75,734 161,489 (105,285) (3,133) (128,805) - |
|
| 281,560 1,304,161 (1,040,553) (141,749) (403,419) - |
Fund transfers relate to the cost of support services provided by Catch 22 Charity Limited, the parent company, during the transition period leading up to the full merger with Catch 22 on 1 April 2025.
Unrestricted funds are used to carry out any of the charity’s objectives, while restricted funds are tied to funding specific objectives or projects. Where specific projects show a deficit between income and expenditure at the end of the financial year, unrestricted funds are applied to make each project fully funded.
26
Classification : Official
Docusign Envelope ID: B6466A3E-EFDF-8D94-8038-E7042D34AD08
REDTHREAD YOUTH LIMITED
Notes to the financial statements for the year ended 31 August 2025
13. Analysis of net assets by fund
| 13. Analysis of net assets by fund | |
|---|---|
| Fund balances as at 31 August 2025 represented by:- | Unrestricted funds Restricted funds Total funds |
| £ £ £ |
|
| Tangible fixed assets | - - - |
| Current assets | - - - |
| Creditors: amounts fallingdue within 1year | - - - |
| - - - |
|
| Fund balances represented as at 31 August 2024 by:- | Unrestricted funds Restricted funds Total funds |
| £ £ £ |
|
| Tangible fixed assets | 11,938 - 11,938 |
| Current assets | 626,415 377,673 1,004,008 |
| Creditors: amounts fallingdue within 1year | (30,624) (96,113) (126,737) |
| 607,729 281,560 889,289 |
14. Operating lease commitments
| As at the balance sheet date the charity had the following commitments under operating leases in relation | As at the balance sheet date the charity had the following commitments under operating leases in relation | As at the balance sheet date the charity had the following commitments under operating leases in relation |
|---|---|---|
| to buildings which expire:- | ||
| 31-Aug-25 | 31-Aug-24 | |
| £ | £ | |
| Within one year: | - | 4,800 |
| Between one and five years | - | - |
15. Employees
| 15. Employees | ||
|---|---|---|
| 31-Aug-25 | 31-Aug-24 | |
| £ | £ | |
| Wages and salaries | 773,379 | 3,658,246 |
| Social Security Costs | 61,059 | 406,374 |
| Workplace pension | 19,159 | 115,545 |
| Working from home allowance | - | 1,849 |
| Restructuringcosts | 48,228 | 12,402 |
| 901,825 | 4,194,416 | |
| 12 months to | 17 months to | |
| 31-Aug-25 | 31-Aug-24 | |
| Youth work, management and support service | 40 | 71 |
27
Classification : Official
Docusign Envelope ID: B6466A3E-EFDF-8D94-8038-E7042D34AD08
REDTHREAD YOUTH LIMITED
Notes to the financial statements for the year ended 31 August 2025
15. Employees (continued)
The number of staff whose total emoluments (comprising salary, employer’s NI and pension contributions) fell within each of the following bands was:-
31-Aug-25 31-Aug-24 Between £90,001 and £100,000 - 2 Between £80,001 and £90,001 - 5 Between £70,001 and £80,000 - 6 Between £60,000 and £70,000 - 9
The unusual decrease in the number of staff receiving emoluments of over £60,000 is the result of the merger with Catch 22 as of August 12[th] 2024 and the subsequent transfer of activities as of April 1[st] 2025.
16. Senior Management Team/Executive
In place of the Redthread Executive team, who left the organisation as part of the merger process, the trustees have seconded Kate Wareham, Catch22’s Strategic Director for Young People, Families and Communities to lead the team as Redthread’s Transition Director, and alongside other Catch22 seconded colleagues, she manages the day-to-day operations of the charity, alongside Redthread’s existing Service Leads, Programme Managers and Team Leaders.
To further enable Redthread to run effectively and efficiently, Catch22 now provide all essential support services to Redthread including finance, fundraising, marketing and communications, data & insights, policy and influencing, business development, and human resources.
The transition board has established appropriate controls and reporting mechanisms to ensure that the leadership team operates within the powers delegated to it.
17. Taxation
The charity’s activities fall within the exemptions afforded by the provisions of the income and Corporation Taxes Act 1988. Accordingly, there is no taxation charge in these accounts.
18. Related party transactions
During the year, Redthread provided services to Catch22 totalling £138,419 on the Social Switch programme.
19. Company limited by guarantee
Redthread Youth Limited is a company limited by guarantee and accordingly does not have a share capital.
20. Ultimate Parent Company
With effect from 12 August 2024, Catch 22 Charity Limited (a company limited by guarantee, no 065577534 and a registered charity , no 1124127), became the sole member of the charitable company, and is the ultimate parent company.
28
Classification : Official