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← New Roots Limited

2025-02-28-accounts

Charity Registration No: 1055759 Company Registration No: 03199738 (England & Wales)

NEW ROOTS LIMITED

Annual Report & Unaudited Financial Statements for the year ended 28 February 2025

New Roots Ltd

CONTENTS

Page
Legal & Administrative Information 2
Trustees Annual Report(including Directors Report) 3 – 7
Independent Examiners Report 8
Statement of Financial Activities 9
Balance Sheet 10
Notes to the Accounts 11 - 16

Page 1

New Roots Ltd

LEGAL AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 28 FEBRUARY 2025

Trustees Raymond Goodwin
Dominic Bennett
Bentley Cunningham
Kate Foley
Chief Executive Officer Derek Douglas
Charity number 1055759
Company number 3199738
Principal address Quayside Tower
252-260 Broad Street
Birmingham
B1 2HF
Registered office Quayside Tower
252-260 Broad Street
Birmingham
B1 2HF
Independent examiner Stephanie J Beeston-Clarke FCCA
Beeston-Clarke Accountants Ltd
92 Gladstone Street
Winsford
Cheshire
CW7 4AZ
Bankers HSBC
148 High Street
Harborne
Birmingham
B17 9PN
Solicitors Anthony Collins Solicitors
134 Edmund Street
Birmingham
B3 2ES
Shakespeare Martineau
Waterfront House
Waterfront Plaza
35 Station Street
Nottingham
NG2 3DQ

Page 2

New Roots Ltd

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (continued) FOR THE YEAR ENDED 28 FEBRUARY 2025

The Trustees present their report and financial statements for the year ended 28 February 2025.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charitable company's Memorandum and Articles of Association, the Companies Act 2006, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102), and “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)” (published in October 2019).

OBJECTIVES AND ACTIVITIES

Principal objectives and activities

The Charitable objectives of New Roots Ltd

Structure, governance and management

The charity is a company limited by guarantee incorporated on 16 May 1996 and governed by its Articles of Association. Operations commenced on 16 May 1996. It was registered as a charity under the Charities Act 2011 on 31 May 1996.

None of the Trustees have any beneficial interest in the charitable company. All of the Trustees are volunteers. Trustees are assisted to fulfil their duties by the chief executives and by other advisors, who offer information and assistance in undertaking all their governance tasks. It is the responsibility of the Trustees to meet to make balanced, proportionate and clear decisions about the future of the charitable company, and make all disclosures about the organisation.

Through consideration of reports on financial management, income, expenditure, liquidity, investments and of forecasts for the next twelve months, Trustees have analysed any risks to the charity, and have identified no material uncertainties that cast doubt about the ability of the company to continue as a going concern.

The Trustees, who are also the directors for the purpose of company law, and who served during the year were:

Raymond Goodwin Dominic Bennett Bentley Cunningham Kate Foley

Page 3

New Roots Ltd

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (continued) FOR THE YEAR ENDED 28 FEBRUARY 2025

Structure, governance and management (continued)

Trustee Recruitment and Appointment

Trustees’ appointments are governed by section 28 & 34 of their Articles of Association which states the following;

28 The minimum number of directors shall be 3 but (unless otherwise determined by ordinary resolution) shall not be subject to any maximum.”

34 Appointment of directors

The charity may by ordinary resolution:

Trustee Inductions and Training

All Trustees have received an induction by the Chair in terms of the history of the Trust and the CEO as regards to the operation. Trustees are advised of online training and updates relating to their roles and responsibility. We are also members of National Council of Voluntary Organisations (NCVO) who sends us updates and online training sessions regarding Trustees.

Organisational Structure

The Board of Trustees are responsible for governance, making strategic and policy decisions, approval of budgets, the sale or purchase of major assets such as land and buildings, and the starting/ending of services under local authority contracts or others.

The board of Trustees meet every two months to manage and monitor the strategic direction and operations of the Charity.

The operational and day-to-day decisions delegated to the Chief Executive Officer. No board member receives remuneration for their role.

Risk Management

The Trustees review the major risks which the charity faces at each board meeting.

Governance and Internal Control

The charity’s system of internal controls is designed to provide reasonable but not absolute assurance against material misstatement or loss. The Trustees are satisfied that the systems in place reduce their exposure to major issues to an acceptable level.

Page 4

New Roots Ltd TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (continued) FOR THE YEAR ENDED 28 FEBRUARY 2025

Achievements and Performance

The transition from exempt accommodation has all but been completed, with the last of two legal cases concluded satisfactorily. This process has not had a negative impact on New Roots, although it took longer than anticipated. During this period, the Board has been considering the organisation’s future direction, commissioning several reports which were discussed at its away day.

The Board has concluded that New Roots will no longer be a provider of exempt accommodation. However, the sector has expanded significantly in the past two years, with an estimated 30,000 people now living in exempt accommodation. In some areas, demand exceeds supply, creating tensions. This increase also highlights the severe shortage of suitable accommodation for single people, which remains a major challenge for Birmingham. Current estimates suggest the city needs to build 127,600 new homes in less than two decades.

The vulnerability of those in need has also risen due to support services being overstretched or inadequate to meet current demands. Affordability is a growing concern: in 2022–2023, the average income per week for those in general needs accommodation was £315, compared with £167 for those in supported accommodation. Considering that the average rent for supported accommodation is around 70% of income, this presents significant hardship for many.

The Board remains committed to improving housing provision for vulnerable people. New Roots believes its experience as a former exempt provider gives it a unique position to lobby for change, ensure that the voices of vulnerable people are heard, and work closely with residents.

New Roots recognises that homelessness is a complex issue and that affordable, supportive services are essential to helping people become active members of civil society. As resources become increasingly stretched, this will require new approaches and stronger partnerships between the charity and private sectors. It is vital to be among the change-makers who develop forward-thinking, practical services, removing barriers that keep people trapped in exempt accommodation and instead offering real, tangible prospects of safe and affordable homes.

New Roots is also actively developing partnerships with like-minded organisations to collaborate on exciting and innovative projects. These partnerships aim to harness shared expertise, creativity, and resources to drive the organisation forward, enhance our impact, and ensure our work continues to meet the evolving needs of the communities we serve.

Plans for the Future

The organisation is committed to using some of its reserves to:

Page 5

New Roots Ltd

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (continued) FOR THE YEAR ENDED 28 FEBRUARY 2025

Financial review

The charitable company's income totalled £82,302 (2024: £71,308).

The charity generated a deficit in the year of £326,297 (2024: deficit £181,607).

As at the year ending 28 February 2025, the Charity had unrestricted reserves of £3,124,027 (2024: £3,124,027) and free reserves of £2,451,465 (2024: £2,770,395).

Reserves Policy

The Trustees maintain reserves to enable the charity to provide a stable and quality service to its beneficiaries. The policy aims to provide working capital where funding is pain in arrears, its ability to meet contractual liabilities and unexpected costs, including legal costs defending the charity’s interest.

The Trustees review the level of reserves and set a prudent level depending on the current situation. Where considered necessary, the Trustees will allocate funds into a designated fund where the future material expenditure is planned. At 28 February 2025 there were no funds designated for future material expenditure.

The current level of reserves is to hold a minimum of 3 months operating costs (after exceptional items) at all times. However, the policy is currently under review by Trustees given the possible changes to its programmes.

Page 6

New Roots Ltd

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (continued) FOR THE YEAR ENDED 28 FEBRUARY 2025

TRUSTEES RESPONSIBILITY STATEMENT

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

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources of the charitable company for the year.

In preparing those financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities 2019 (FRS 102) and in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by the Trustees/Directors on 12 September 2025 and signed on its behalf by:

Raymond Goodwin

Raymond Goodwin (Sep 22, 2025 13:19:52 GMT+1)

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Raymond Goodwin

Chair of Trustees

Page 7

New Roots Ltd

INDEPENDENT EXAMINERS REPORT FOR THE YEAR ENDED 28 FEBRUARY 2025

I report to the Trustees on my examination of the financial statements of New Roots Limited (the charitable company) for the year ended 28 February 2025, which are set out on pages 9 to 17.

Respective responsibilities of trustees and examiner

As the charity trustees of the charitable company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the financial statements of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charitable company's financial statements as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Direction given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed by examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no other concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Stephanie J Beeston-Clarke FCCA Beeston-Clarke Accountants Limited 92 Gladstone Street Winsford Cheshire CW7 4AZ

Dated: 15 September 2025

Page 8

New Roots Limited

STATEMENT OF FINANCIAL ACTIVITIES (including Income & Expenditure Account) FOR THE YEAR ENDED 28 FEBRUARY 2025

2025 2024
Notes £ £
Income and endowments from:
Other trading activities 3 28,944 21,599
Investments 4 53,358 49,709
Other income - -
Total income 82,302 71,308
Expenditure:
Charitable Activities 5 **298,202 ** 252,978
Total resources expended 298,202 252,978
Net incoming/(outgoing) resources before transfers (215,900) (181,670)
Exceptional items 9 (110,397) -
Net income/(expenditure) for the year / net movement in funds (326,297) (181,670)
Fund balances at 29 February 2024 3,124,027 3,305,697
Fund balances at 28 February 2025 2,797,730 3,124,027

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derives from continuing activities.

The statement of financial activities also complies with the requirement for an income and expenditure account under the Companies Act 2006.

Page 9

New Roots Limited

BALANCE SHEET

AS AT 28 FEBRUARY 2025

2025 2024
Notes £ £ £ £
Fixed assets
Tangible fixed assets 10 346,265 353,632
Current assets
Debtors 11 93,468 448,842
Cash at bank and in hand 2,663,908 2,837,481
2,757,376 3,286,323
Creditors: amounts falling due within 1 year 12 305,911 515,928
Net current assets 2,451,465 2,770,395
Total assets less current liabilities 2,797,730 3,124,027
Funds
Unrestricted funds 2,797,730 3,124,027
2,797,730 3,124,027

The charitable company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 28 February 2025. No member of the charitable company has deposited a notice, pursuant to section 476, requiring and audit of those accounts.

The Trustees acknowledge their responsibility for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The accounts were approved by the Board of Trustees on 12 September 2025

Raymond Goodwin Raymond Goodwin (Sep 22, 2025 13:19:52 GMT+1)

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

Raymond Goodwin

Chair of Trustees

Company Number 03199738

Page 10

New Roots Limited

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 28 FEBRUARY 2025

1 Accounting policies

Charity information

New Roots Limited is a charitable company limited by guarantee, incorporated in England and Wales and was an English registered social housing provider up until de-registration on 21 January 2022.

The registered office is Quayside Tower, 15th Floor, 252-260 Broad Street, Birmingham, B1 2HF

1.1 Accounting convention

The financial statements have been prepared in accordance with the charitable company's memorandum and articles of association, the Companies Act 2006, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102), 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 issued in October 2019, UK Generally Accepted Accounting Practice and applicable charity and company law. The charitable company is a Public Benefit Entity as defined by FRS102. The charitable company has taken advantage of the provisions in the SORP for charities applying FRS102 Update Bulletin 2 not to prepare a Statement of Cash Flows.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

The charity's activities, its current financial position, and factors likely to affect its future development are set out within the Trustees Annual Report.

On this basis, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operation for the foreseeable future, being a period of at least 12 months after the date on which the report and Financial Statements are signed. For this reason, the Charity has continued to adopt the going concern basis for the preparation of the Financial Statements.

1.3 Charitable funds

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

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.

Transfers are made between funds when adequate justification and supporting evidence is provided.

1.4 Incoming resources

Grants are accounted for under the terms of the grant agreement, and allocated between funds according to the basis of the grant being provided. Grant income is recognised when the charity is entitled to it after performance conditions have been met, the amounts can be measured reliably and it is probable that the income will be received. Where the charitable company is required to repay any part of the grant a provision is made for the amount due to be repaid.

Grants from local authorities and similar organisations have been included as contracts for services where applicable or as donations where the money is given with greater freedom of use.

Donations and legacies receivable are accounted for where there is entitlement, sufficient certainty of receipt and the amount can be measured reliably. In the case of unsolicited donations this is usually only when received. All other income is accounted for under the accruals concept. No amounts are included in the financial statements for services donated by volunteers. Donated capital items are included withing the financial statements at their current value at the time of donation. Donations and legacy Income received specifically for future periods is deferred until those periods.

Page 11

New Roots Limited

NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 28 FEBRUARY 2025

1 Accounting policies (continued)

1.5 Resources expended

All expenses are accounted for on an accruals basis. Expenditure incurred in connection with the specific objects of the charitable company is included under the heading of direct charitable expenditure, overheads are allocated to activities in proportion to their use of facilities. The irrecoverable element of VAT is included with the item of expense to which it relates.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Tangible fixed assets costing £1,000 or more are capitalised and are stated at cost less depreciation. Donated assets are included at their current value at the time of donation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Land & Buildings

50 years straight line

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 recognised in net income/(expenditure) for the year.

1.7 Impairment of fixed assets

At each reporting end date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charitable company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS102 to all of its financial instruments.

Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amorised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Page 12

New Roots Limited

NOTES TO THE ACCOUNTS (continued)

FOR THE YEAR ENDED 28 FEBRUARY 2025

1 Accounting policies (continued)

1.9 Financial instruments (continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charitable company's contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Retirement benefits

The charitable company operated a defined contribution scheme under auto-enrolment. Contributions payable are charged to the statement of financial activities in the year in which they are payable.

1.12 Leases

Rentals payable under operating leases, including lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

1.13 Creditors and provisions

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

1.14 Debtors

Debtors are recognised at the settlement amount due.

2 Critical accounting estimates and judgements

In the application of the charitable company´s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Page 13

New Roots Limited

NOTES TO THE ACCOUNTS (continued)

FOR THE YEAR ENDED 28 FEBRUARY 2025

3 Other trading income 2025 2024
£ £
Other income 75 -
Rental income 28,869 21,599
28,944 21,599
4 Investments 2025 2024
£ £
Interest receivable and other similar income 53,358 49,709
All investment income for the current and prior year was unrestricted.
5 Charitable Activities Expenditure 2025 2024
£ £
Head office costs 19,134 60,094
Corporate Overheads 154,845 49,233
Salary and related costs 114,191 113,729
Rent, rates & utilities 8,075 26,598
Maintenance **1,957 ** 3,324
298,202 252,978

Included in Corporate Overheads are legal fees relating to the property at Highfield Road of £104,680 (2024: nil)

6 Operating surplus/(deficit) 2025 2024
The operating surplus/(deficit) is stated after charging/(crediting): £ £
Exceptional costs(note 9) 110,397 -
Depreciation of Tangible Fixed Assets 7,367 7,368
Independent Examination 3,120 2,800
7 Employees 2025 2024
Number of employees Number Number
The average monthly number of employees during the year was:
Management 2 2
Other - -
2 2
Employment costs 2025 2024
£ £
Wages and salaries 104,276 104,000
Social security costs 6,795 11,609
Pension costs 3,120 3,120
114,191 118,729

There were no employees whose annual remuneration was £60,000 or more.

The aggregate remuneration of Key management personnel during the year was £54,000 (2024: £49,500).

8 Trustees

During the period, no expenses were reimbursed to Trustees (2024: NIL). No Trustee received remuneration during the year to 28 February 2025 or to 29 February 2024.

Page 14

New Roots Limited

NOTES TO THE ACCOUNTS (continued)

FOR THE YEAR ENDED 28 FEBRUARY 2025

9 Exceptional costs 2025 2024
£ £
Historical bad debts 323,701 -
Dilapidation provisions reversed (90,000) -
Housing benefit creditor not due (123,304) -
110,397 -

Exceptional items in the year to 28 February 2025 relate to bad debts written off where the amount owed the the charity has been reduced due to the court settlement with the long arm debtor, a reduction in dilapidation provisions due, and a reduction in Housing Benefit owed which is no longer repayable.

10 Tangible Fixed Assets Land &
Buildings
Cost £
At 1 March 2024 368,370
Additions -
Disposals -
At 28 February 2025 368,370
Depreciation £
At 1 March 2024 14,738
Depreciation charge during the year 7,367
Eliminated on disposal -
At 1 March 2024 22,105
Net Book Value £
At 1 March 2024 353,632
At 28 February 2025 346,265
11 Debtors: amounts falling due within one year: 2025 2024
£ £
Trade debtors - 2,371
Long Arm providers - overpaid Housing Benefit 75,000 423,701
Prepayments 3,665 5,882
Accrued income 12,312 16,340
Other debtors 2,492 548
93,468 448,842

Page 15

New Roots Limited

NOTES TO THE ACCOUNTS (continued)

FOR THE YEAR ENDED 28 FEBRUARY 2025

12 Creditors : amounts falling due within one year: 2025 2024
£ £
Trade creditors 20,612 8,841
Long Arm providers - Housing benefit due 77,696 191,767
Other taxation and social security 4,357 2,542
Accruals & deferred income 3,120 11,563
Other creditors 127 11,215
Provisions for liabilities 200,000 290,000
305,911 515,928

13 Operating lease commitments

At the reporting end date the charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2025 2024
£ £
Within one year 12,500 - -
Between two and five years 24,958 -
37,458 - -

14 Related Party Transactions

There were no related party transactions during the year, and no balances owed from/to related parties.

15 Contingent Liability

During the year the outstanding legal action for a financial claim of £1,300,000 including legal costs has been settled in court.

In the year to 29 February 2024, the charity's interpretation of the legal basis on which the claim was made, the trustees were satisfied that the claim did not satisfy the conditions to be recognised as a provision, and was assessed as a contingent liability.

The court settlement was agreed at £100,000 and this will be repaid during the next financial year and is recognised in debtors (note 11).

Page 16