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← Avenues East

2025-03-31-accounts

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Docusign Envelope ID: F6953FFC-25B5-4892-BF22-2C3265489199

Avenues East

Financial Statements for the year ended 31 March 2025

Charity Registration Number: 1061241 Company Registration Number: 03326442

Docusign Envelope ID: F6953FFC-25B5-4892-BF22-2C3265489199

AVENUES EASTVENUES EAST

Index Page
Board Members and Executive Directors
1 - 2
Trustees’ and Strategic Report
3 - 21
Statement of Trustees’ Responsibilities 22 - 23
Independent Auditor’s Report 24 - 28
Statement of Financial Activities
29
Balance Sheet 30
Notes to the Financial Statements 31 - 48

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AVENUES EASTVENUES Board Members and Executive Directors

Chair: Terry Rich

All Trustees are Members of the overlapping Group Boards for Avenues Trust Group and all committees are held on a Group basis.

Non-Executive Trustees:

Evlynne Gilvarry Member of the Audit & Risk Committee Alistair Gordon Brown Chair of Audit and Risk Committee / Member of Finance Committee Lauren Stoner Member of the QLE Committee Jonathan Hardie Member of Finance Committee and Integration Committee. Resigned on the 22[nd] October 2024 Luis Hui Member of Finance and Digital & IT Committee Appointed on the 27[th] November 2025 Executive Trustees: Joanne Land Nicola Ford

Key Management Personnel:

Paul Attrill Regional Director (until 25 April 2025) Joanne Land Group Chief Executive Nicola Ford Group Director of Finance Steven Parker Group Director of Housing and Development (until 31 Oct 2025) Daniel Gower-Smith Group Director of Operations Karina Hourd Group Business Development Director Caroline Neal Group Director of People and Organisational Development Lauren Osman Company Secretary and Group Head of Governance

Charity Registration Number: 1061241 Company Registration Number: 03326442

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Registered Office:

River House, 1 Maidstone Road, Sidcup, Kent DA14 5TA

Advisors:

Bankers: Barclays Bank PLC, One Churchill Place, Canary Wharf, London E14 5HP

External auditor: RSM UK Audit LLP, 25 Farringdon Street, London EC4A 4AB

Solicitors: Trowers & Hamlin, 3 Bunhill Row, London EC1Y 8YZ.

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Trustees’ and Strategic Report

The Board presents its Annual Report and the Audited Financial Statements of Avenues East for the year ended 31 March 2025. The legal and administrative information set out on Pages 1 and 2 forms part of this report.

The Financial Statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard (FRS 102) applicable in the UK and in the Republic of Ireland.

Introduction

The Avenues East accounts for 2025 and the 2024 comparative figures are constructed in line with best practice, as set out above. Compliance with best practice extends to the need to address the “public benefit” provided by Avenues East.

“Avenues”/ “Avenues Group” means the Avenues Trust Group Limited and its subsidiaries of which Avenues East is one.

Environmental, Social and Governance (ESG)

At the heart of our mission is a desire to empower individuals and communities, ensuring their well-being and fostering social equity. We firmly believe that every person deserves respect, dignity, and equal opportunities. Through our work we actively strive to uplift vulnerable people, promote inclusivity, and support the development of sustainable and resilient communities.

We recognise that, whilst delivering our mission, our actions today shape the world of tomorrow. As a dedicated and compassionate organisation, we believe in the power of Environmental, Social and Governance (ESG) principles to drive sustainable progress and create a lasting impact on our planet for the people that we support, our employees and the wider community.

In the course of our work, we are already good at delivering against the social and governance aspects of these principles. We have made some progress against the environmental principles but are currently working on improving our impact in this area.

Our recent collaboration with Eastside Primetimers, utilising their ESG tool, has provided us with valuable insights into our progress in ESG. This tool benchmarked our performance against 78 participating organisations, representing a combined

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income of £870m, and serving 18 beneficiary groups, including adults, socially disadvantaged individuals, and children.

We ranked in the 4[th] (top) quartile for disclosure, recognising our efforts to provide a high level of transparency. The report summarised the results of the ESG selfassessment survey for not-for-profit organizations, offering a comprehensive view of our ESG practices compared to our peers. It identified areas of progress and opportunities for improvement, leading to the establishment of an ESG focus group to drive these initiatives forward.

Social

Public Benefit

Avenues East provides community-based support to autistic people, and those with learning disabilities, acquired brain injuries and complex needs.

Most of our work is commissioned by local government and the NHS and delivered through Supported Living arrangements. This methodology is recognised to deliver better outcomes and significant savings to the public purse when compared to residential and clinical alternatives.

Avenues East supports more than 83 people to enjoy community-based life and employs over 300 staff.

Our aspiration is not to manage people’s lives, but to understand what really matters to them and unlock the opportunities they want to take. But no provider can do this effectively in isolation, and we work with a wide range of organisations and networks to achieve this, including Skills for Care, the British Institute of Learning Disabilities (BILD), The Restraint Reduction Network and the Voluntary Organisations Disability Group (VODG).

Quality is of paramount importance to Avenues, so we also work with the Tizard Centre at the University of Kent, which acts as a critical friend and audits our standards.

At a statutory level we are regulated by the Care Quality Commission.

Quality and performance is reliant on all employees' shared ambition to make a positive difference to the lives of people we support, so recruitment is based on aptitude, regardless of previous experience. Staff complete mandatory training, as well as specialist courses based on the needs of the people we provide services to. We know that well-supported people support people well.

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We take into account shared interests when matching staff to people they support. This means support is personalised and encourages retention and consistency. Staff take time to get to know people, working out what matters to them and what they enjoy, meaning they can live the lives they want to live.

Through our approach we can, over time, reduce people's support needs so they can live with increasing independence.

Since joining with Autism Hampshire we have utilised the additional expertise in neurodiversity, strong shared values and specialised training team to enhance our existing support for autistic people across all the Group’s services.

The trustees of Avenues East have read the Charity Commission guidance on public benefit and have paid due regard to the guidance in preparing their statements on public benefit in this report.

Our Employees

In line with the vision of The Avenues Trust Group, we are committed to ensuring that all job applicants and employees are treated fairly in line with our equality of opportunities, diversity and fair treatment policy and procedure. We also have an ongoing commitment to ensuring that our employees are competitively rewarded, especially in light of the most recent cost of living challenges.

We value diversity and social inclusion across all of our activities and our recruitment process ensures that all applicants are recruited on a values basis, treated with respect and dignity and are screened to ensure that they are suitable to work with vulnerable people. Our commitment to Equality, Diversity & Inclusion resulted in us retaining a place in the top 100 most inclusive employers in 2022 with the National Centre for Diversity.

We have a comprehensive wellbeing offering supporting mental, physical, social and financial wellbeing. It includes but is not limited to an Employee Assistance Programme, which includes free counselling to those that need it, weekly Mindfulness sessions, money management advice and Early Pay; a facility whereby employees can draw down their earned salary should they need it to prevent the need for expensive pay day loans.

We have in place an extensive training package that supports safe working practices and have a well embedded practice of risk assessment to ensure safe practice and equipment. Our supervision practice is robust and ensures that wellbeing action planning is front and centre of our discussions with the workforce.

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In the event of a change in an employee’s health, in accordance with our sickness absence policy, we work with occupational health and the individual to establish whether this constitutes a disability and in the event it did, we would continue to work with them to make every reasonable effort to sustain ongoing employment. We have good rehabilitation practices in place to support those with substantial health issues to return to employment as early as possible.

Employee communication and engagement is key to the success of the Group. Through good local management and our communications team, we ensure that all employees are kept informed about the charity’s strategy, objectives and performance, as well as day-to-day news and events.

Regular information about the organisation is available through newsletters, online resources, team meetings and management briefings. All employees are encouraged to give their views and opinions on strategy and performance. As well as local mechanisms to get in touch, employees can contact the Executive Management Team (EMT) direct via email or by joining one of our regular virtual meetings with EMT members.

Our learning and development programme meets the standards set by Skills for Care, the workforce development body for adult social care in England. The endorsement is a trusted quality mark awarded to the best learning and development providers within the social care sector.

Avenues has held this accreditation for a number of years now. All of our managers undergo a specially designed induction course at a Leadership and Management Academy that supports them to be effective leaders and managers. Training is free to our employees and freely available to them to attend through the publication of extensive quarterly training calendars.

Recognition of our workforce and their skilled and dedicated support to vulnerable people is key and is underpinned by our system of local monthly employee of the month awards which across the course of the year culminate in an annual employee celebration.

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Statement on Employment of Disabled Persons

Commitment to Diversity and Inclusion

Avenues is committed to promoting diversity and inclusion across all areas of its work. We believe that a diverse workforce enriches our organisation and enhances our ability to serve the community effectively. In line with this commitment, we actively promote equality of opportunity for all, including those with disabilities.

Employment Practices

We ensure that our recruitment processes are inclusive and accessible to disabled candidates. We make reasonable adjustments throughout the recruitment process, ensuring that disabled applicants can compete on equal terms.

For existing employees who become disabled, Avenues is committed to supporting their continued employment by making reasonable adjustments to their work environment, duties, or role where necessary. This may include adjustments such as modified equipment, flexible working arrangements, or additional support.

Training and Development

Avenues provides training to all employees, including those with disabilities, to ensure they have the skills and opportunities to develop in their roles. We regularly review our training programs to ensure they meet the needs of our disabled employees and support their career progression within the organization.

Accessibility and Reasonable Adjustments

We regularly assess the accessibility of our workplace and the services we provide to ensure they meet the needs of our disabled employees and people we support. Reasonable adjustments are made as required to remove barriers to participation and employment, and we consult with employees on the adjustments they may need to succeed in their roles.

Monitoring and Reporting

We monitor the effectiveness of our policies and practices relating to the employment of disabled persons and regularly review our performance in this area. This includes tracking the number of disabled employees, the types of adjustments made, and employee satisfaction levels. The findings are reported to senior management and used to inform future improvements.

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Anti-Discrimination

Avenues is committed to preventing discrimination against disabled employees and job applicants. We have clear policies in place that prohibit discrimination, harassment, and victimization on the grounds of disability, and we take any such incidents seriously, ensuring they are investigated and addressed promptly.

Environmental

We believe that safeguarding our environment is not just a responsibility but an urgent necessity. Avenues East is committed to reducing our carbon footprint, promoting eco-friendly practices and supporting initiatives that protect and preserve our natural resources.

By working with our partners and stakeholders, we are on a journey to implement sustainable strategies that contribute to a cleaner, greener and more resilient world.

We are working to reduce the harmful impact on the environment we work in. As a provider of care services much of what we do is through people working with other people but we are also an active user of resources:

To minimise our carbon footprint, we are committed to reducing the use of natural resources including our reliance on fossil fuels. We have already:

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Over the next five years we will:

Governance

Transparency is the cornerstone of our governance. We hold ourselves accountable to the highest standards of governance, adhering to ethical practices and ensuring the responsible allocation of resources. We embrace openness in our decision-making processes, fostering trust and confidence among our stakeholders.

Legal Structure

Avenues East is a charitable company limited by guarantee and was incorporated in England and Wales on 3 March 1997. The company was established under a Memorandum of Association which established the objects and powers of the charitable company, which is governed under its Articles of Association. The Memorandum of Association was last reviewed and updated in May 2020. In the event of the company being wound up, members are required to contribute an amount not exceeding £1.

Members have adopted a set of Articles which include the Objects to enable the organisation to change its Board to a unitary structure, enabling two executives to become trustees.

Avenues East is a subsidiary of The Avenues Trust Group, which is a registered charity and constituted as a company limited by guarantee. The Avenues Trust Group is the sole member of Avenues East. Avenues East has made qualifying thirdparty indemnity provisions for the benefit of its trustees.

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Board Structure

The Avenues Group Boards operate an overlapping board governance structure. The overlapping board structure involves all the entities within the Group sharing a core group of trustees common to all the Boards (the majority of whom are nonexecutive) with a small number of independent trustees who sit on one but not any of the other Boards. This way of operating provides for efficiency but also the effectiveness of our governance. It increases the speed of ou r decision making, streamlines information flows and improves clarity regarding accountabilities. The Board members are set out on Page 1.

The Group Board meets five to six times per year and more frequently if required and is responsible for determining the strategy of the organisation and for ensuring successful operational performance, in line with the expectations of stakeholders.

The Avenues Group has five committees which discuss the business of the whole Group. The committees are:

Committees report directly to all the Boards within the Avenues Group.

The Audit and Risk Committee, in line with good governance principles, is expected to bring a further degree of detachment from the Board’s responsibilities in discharging its distinctive duties. The committee leads on engagement with internal and external audit; and oversees all systems, controls and processes that may have an impact on the ability to meet our aims.

The Finance Committee provides an additional layer of oversight regarding any financial matters that may have a significant impact on the charity.

The People, Culture and Reward Committee (PCR) provides assurance that the Group has an effective People and Pay Strategy in place, promoting an effective, high performing and diverse workforce. The committee also oversees issues relating to the remuneration of staff, with specific responsibility for making recommendations to the Boards regarding the Group Remuneration Policy and the Executive Management Team’s remuneration.

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The Quality, Local Focus and Engagement Committee (QLE) provides assurance regarding the quality of our services and the engagement of the people we support across the organisation. This committee was introduced to provide assurance to the board(s) regarding the operational delivery of quality support. Our aspiration is that the support we provide enables people to maximise their independence and opportunities whilst keeping them safe. The committee will also find the best way to engage with all stakeholders within particular regions, ensuring their voices are heard so they are involved in the setting of the organisation’s goals, quality and culture.

The Digital and IT Committee has been put in place to bring a greater degree of engagement in our digital strategy, priorities, spend, delivery and direction so that digital interests are adequately represented at the Group Board level and to enable assurance on technology delivery and digital priorities.

In addition to our committees, we have also introduced Special Interest Groups for specific organisation-wide projects. These are task and finish groups which oversee projects that are integral to the delivery of the strategic plan set by the board. Each Special Interest Group includes trustees as members. This year Special Interest Groups includes and Fundraising and Governance.

The Charity Governance Code

The Avenues Group recognises the importance of good governance and uses the Charity Governance Code to inform any reviews and changes to all governance policies.

All trustees are made aware upon appointment of their responsibilities under the Code.

In our efforts to strive to be the best we can be in governance we have used the Code to undertake board and trustee appraisals, making sure that the principles of our appraisal tools are based on and support the guidelines and recommendations outlined in the Code.

This year, the Board of the Avenues Trust Group commissioned an independent governance review by the Centre for Charity Effectiveness (CCE). In doing so, our trustees have clearly signalled their deep commitment to good governance and their willingness to invest in strengthening the organisation’s structures and practices.

The review highlighted a Board that is not only high performing against the Charity Governance Code but also deeply committed to the organisation, the people it supports and to their families. The organisation’s values were found to be alive and evident throughout, from the Board to the executive and beyond. CCE said:

“Avenues are to be commended for undertaking an external governance review and we were delighted to work with them. Several recommendations were made to take

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their governance that step further, building on already solid and effective foundations.”

Following the review, the Board formally accepted the recommendations and established a Governance Focus Group to oversee their implementation. This group will ensure that the proposed enhancements, many of which are about moving from ‘good to great’, are embedded effectively and sustainably across the organisation.

Trustee Recruitment

All of our trustees are selected in a manner consistent with our recruitment, diversity and equality policies, ensuring that the selection process is both time and cost effective. Following a successful recruitment campaign in 2021 we successfully improved the diversity of our Board by 20%.

Our non-executive trustees serve a period of four years, with an option to extend for a further five years. In addition to making direct approaches to suitable candidates Avenues may advertise for trustees through notice boards, network recruitment or in the media. When a recruitment need is identified the Head of Governance works with the board and committees to carry out a skills audit before a recruitment campaign begins.

Policies and procedures are in place for the induction and training of new trustees. Training needs are continuously identified through board/committee discussions and surveys and board and trustee appraisals. When a training need is identified we organise and this can be delivered online, internally or through externally facilitated training sessions.

This year the Governance Focus Group reviewed and re-drafted our trustee recruitment and induction policy ahead of our plan to recruit four new trustees in 2025/26. This recruitment will help strengthen our board and enhance our strategic direction when four of our longstanding trustees are due to stand down. Our chair was also due to stand down in October 2025 but, following discussion, the board have agreed that it is in the best interests of Avenues to extend the Chair’s term by one further year to provide continuity whilst we recruit and induct new trustees and develop our new strategic plan.

How we work with our stakeholders

Family Matters Group

Avenues are continually looking for ways to improve the support we provide and are keen to develop greater involvement in what we do from the families, carers and friends involved in the lives of the people we support. Last year we started our Family

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Matters Group.

The aim of the Family Matters Group is to provide a real voice for families, carers and friends in the work that we do, ensuring that our practices, policies, procedures and initiatives have their involvement.

The Family Matters Group has an independent chair and provides a forum which allows communication and transparency between us and the parents and advocates of the people we support.

The Group’s role is to:

Local Engagement Groups

Avenues currently have eight active Local Engagement Groups across the Organisation. They are made up of people we support and are supported by our Coproduction Lead from the Quality Assurance and Practice team. The groups are well established, and members chair their meetings.

The purpose of the groups is to:

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Coproduction Panel

The Coproduction Panel has now met on 4 occasions. Membership includes people we support and family members. The local engagement groups will be voting for representatives to sit on the panel. The panel receive regular business updates from members of EMT.

The Panel has completed the following work:

Stakeholder Surveys

3 different Surveys are sent out each September. In 2024 Surveys were sent out to People we Support, Family and Friends and external Professionals who actively visit our services.

Feedback from the Surveys was shared with the Quality and Local Engagement Committee (QLE) at the December 2024 meeting and actions are taken to respond to any questions raised through the Surveys.

Legal Compliance

We believe that everyone has rights with regard to how their personal information is handled. Complying with Data Protection Law ensures people can trust us to use their data fairly and responsibly. Safety and providing quality services is at the heart of everything we do. It is very important to us that we keep all personal information that we hold safe.

The Avenues Group Boards have continued to oversee our compliance with UK data Protection Laws and GDPR. Avenues has always taken data protection seriously and we continue to strengthen our policies and procedures to ensure that the protection of people's information remains a high priority. Data Protection compliance is reported directly to the Audit and Risk Committee.

Strategy

The strategic direction of Avenues East is set in the context of the overall Avenues Group strategy as a whole. We completed a strategic review of the 2021-2025 strategy,

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Building better Lives Together, in Autumn 2024 and were proud of the substantial achievements. We are using 2025/26 to develop a new three year strategy that grows on improved financial sustainability, growth and quality services.

Risk Management

The Boards of the Avenues Group operate a formal risk management process and risk register, which involves continuous review of the risks identified and those emerging, their potential impact and means of mitigation. The risk register is reviewed by the group Audit Committee, which, in turn, reports on risk to the Avenues Group Boards on a quarterly basis. The key risks identified for 2024/25 were:

  1. Financial Sustainability: The social care sector is facing significant financial pressures because of increasing costs, mainly in relation to the workforce, and insufficient funding and/or delays in payments from local government. As a result, our financial margins are under pressure and there is an increasing risk this will impact the viability of the organisation. With no national plan for social care, we must plan to mitigate this risk to ensure long term sustainability.

  2. Growth and Development: Our future sustainability will be threatened if we do not realise our growth plans. Avenues needs to grow to remain financially sustainable and to flourish organisationally.

  3. Reputational: Our future relies heavily on our reputation with our stakeholders which include CQC, our employees, the people we support and their families and our commissioners. To maintain a good reputation, we must continue to provide quality support and listen to what our stakeholders need. Any dip in quality could result in serious consequences to the people we support and then affect our reputation and future business pipeline.

  4. People: Our people are our most important asset and internal in-efficiency, workforce development, pay and reward will impact on our future resilience. The external labour market for quality support workers is proving very challenging for all social care providers and as a result we must plan to mitigate any risk to ensure quality support and any associated risks to our reputation. This risk is inflated during organisational change.

  5. External: External threats out of our control can affect other risks. This includes legislative rulings, cyber-attacks, fraud and pandemics which will potentially impact on our financial or reputational position if we don’t mitigate or comply.

  6. Digital: Our reliance on a digital and IT infrastructure is critical for managing sensitive data, coordinating care delivery, and maintaining accountability to local government funders. It is also imperative that we utilise digital and IT solutions to improve efficiencies across our workforce. This reliance introduces

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significant risks, including operational disruption, regulatory non-compliance, cybersecurity threats, and reputational damage.

All necessary measures have been taken to mitigate these risks and they are continually monitored by management, Committees and the Board.

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Strategic Report

Objectives and activities

The charitable objects of Avenues East are for the public benefit as they support and promote the intellectual, emotional, physical and spiritual welfare of people aged sixteen and upward with complex support needs. This is achieved by providing professional, high quality, not-for- profit support services to people, supporting them to enjoy their lives within their communities.

In considering the organisation’s objectives and activities, the Trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission.

Achievements and performance

As well as our ambition to support people for the long term, we continue to offer genuine career prospects to employees and positive succession planning.

Our commitment to quality has continued through our strategic partnership with the University of Kent, focusing on the promotion of positive behavioural support and active support - both approaches that are demonstratively effective in supporting the people that Avenues work with.

Over the past year we have continued to develop our services across our subsidiaries, proving once again that the people with support can enjoy better lives through tailored, community-based support.

The Avenues Trust Group has a monthly balanced scorecard which is used for reporting to management and trustees. Within this are 4 headline Key Performance Indicators which are underpinned by a set range of Key Performance Indicators as follows:

People

Infection prevention and control remain at the forefront of all service delivery. We have continued to maintain a good supply of required PPE and have updated guidance across the organisation as required and following Government alterations.

We continue to build upon close working relationships with relevant professionals and family members. These relationships have been essential in empowering the people we support to lead rewarding and fulfilling lives, maintain positive family contact, through the most challenging of times.

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As with all providers across the sector, recruitment and retention of staff has been one of the main challenges over recent years, however we have seen a significant improvement in our vacancy rates this year.

At March 2025 we had a vacancy rate of 13% against a target of 20%.

Financial sustainability

Avenues East ended the year with a deficit position. This was as a result of pressure from voids across the services. To some extent this was offset by staff savings. We continue to maintain close working relationships with the local authorities to identify suitable individuals where those voids occur and are hopeful of the number decreasing during the financial year 2025/26.

Growth and development

Growth continues to be a focus during 2025/26. We were particularly pleased to be awarded three new contracts in Norfolk to deliver new services in Norwich, Swaffham and Kings Lynn.

We’ll be working with colleagues in Norfolk County Council and Golden Lane (the housing provider) during 2025/26, with the plan for the first people to be moving to their new homes in Norwich early in 2026/27. We will continue to respond to viable tender opportunities and growth opportunities during the next year.

Reputation

We have a 66% good rating (3 registrations in total) with CQC across the East, with the new service in Essex remaining as requires improvement, as it was when it transferred to Avenues in February 2023.

Financial results for the year ended 31 March 2025

The financial activities of the year are set out in detail on the Statement of Financial Activities (SOFA). Total income decrease by 2% to £7.5m. Expenditure also increased by 2%, resulting in a deficit of £729k, compared to a deficit of £431k in 2023/24.

Because of in year performance, the accumulated funds are now showing a deficit of £1,106k (2024: deficit of £377k). This comprised of a decrease in restricted fund of £10k and a decrease of unrestricted funds of £719k. This was against a budgeted deficit of £710k but saw a higher loss due to some loss in income from voids, offset slightly by lower operational costs than budgeted.

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There are plans to improve on the income by reducing the void levels and targeted growth covering core cost with a fair contribution to cover a percentage of the central cost. There are also cost saving strategy plans throughout the year and beyond, monitoring financial performance and scrutiny on loss making services.

The budget for 2025/26 is set as a small deficit. With the new Norfolk services coming on line in 2026/27 we expect to see this position improve.

Reserves policy

The Reserves policy is established at a Group level and is used to ensure that Avenues Group reserves should be sufficient to mitigate against any significant organisational risks and as such the board have concluded a target for Group free reserves of £1.5m. The new Norfolk services will see Avenues East grow and move into a more positive position.

The balance held as unrestricted fund is negative £1,278k (2024: (£559k)) and restricted £172k (2024: £182k), therefore there are no free reserves. There is a plan to see Avenues East into a reduced loss in 2025/26 and breakeven or make a small surplus by the end of 2026/27.

The Group strategy is to maintain the reserve at £1.5m level. The plan is to do this through profitable growth and to continuously monitor financial performance across all entities within the Group.

Reserves were as follows at March 2025:

£000
- General (1,278)
- Restricted funds 172
- Pension scheme -
TOTAL (1,106)

Investment policy

The Group’s current investment policy is to place surplus cash requirements on the money market both overnight and for longer periods, earning interest at the money market rates at the time of placement. The charity currently holds no equity investments. The management of cash reserves are reviewed at a Group level.

Going Concern

The financial statements have been prepared on a going concern basis and the position on going concern ultimately rests with the Group. Avenues East has a deficit

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budget for 2025/26 and there is significant focus on cost control and exploring growth opportunities in Avenues East to increase scale and improve financial sustainability. We have secured a new contract with Norfolk which mobilises in April 2026 and will give Avenues East some economies of scale as it looks to return to a surplus position.

The pension scheme deficit is for the long term and therefore has no significant bearing on the going concern assessment for Avenues East.

The Avenues Group operates within a cross guarantee arrangement and cash is pooled across the group to service working capital requirements.

The Trustees consider it appropriate to prepare the financial statements on a going concern basis and have not identified any material uncertainties that may cast doubt on the charity’s ability to continue as a going concern.

Equality and diversity

Avenues East values and aims to support equality and diversity regardless of age, gender, race, disability, religion/belief, and sexual orientation. We recognise that our success depends upon our people. We further recognise that capitalising upon what is unique about individuals and drawing upon their different perspectives and experiences adds value to the way we deliver our services.

These aims are delivered through our Equal Opportunities, Equality & Diversity, AntiDiscrimination, Anti Bullying & Harassment, Recruitment and Training & Development Policies and Procedures. Where possible we shall strive to make appropriate adjustments to the workplace to support people to achieve their work potential.

The organisation is committed to ensuring that it continually develops and supports a culture of effective communication and that all staff have an equal opportunity to contribute. This is achieved through our internal communication policies and procedures.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

Auditor

RSM UK AUDIT LLP has indicated its willingness to continue in office.

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AVENUES EASTVENUES Trustees’ and Strategic Report

Future plans

Our plans during 2025/26 are in line with previous years. In addition we will support the development of a new organisational strategy for the group.

The Annual Report of the Trustees and Directors is approved by order of the Board as trustees and the Strategic Report (included therein) is approved by the Board of Trustees in their capacity as the directors and signed on its behalf by:

(<jA47F8403F28949C...“Ds (Ct Terry Rich Chair Date: 14 October 2025

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Statement of Trustees Responsibilities

The trustees (who are also directors of Avenues East for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the 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, including the income and expenditure, of the company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable 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.

Financial statements are published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity’s website is the responsibility of the trustees. The trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein. In so far as the trustees are aware:

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Statement of Trustees Responsibilities

By order of the Board

(<jA47F8403F28949C...“Ds (Ct Terry Rich

Chair

Date: 14 October 2025

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Independent Auditor’s Report to the members of Avenues East

Opinion

We have audited the financial statements of Avenues East (the ‘charitable company’) for the year ended 31 March 2025 which comprise the Statement of Financial Activities (including Income and Expenditure Account, the Balance Sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’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.

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Independent Auditor’s Report to the members of Avenues East

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Annual 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.

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 course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report or the Strategic Report included within the Trustees’ Report and Strategic 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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Independent Auditor’s Report to the members of Avenues East

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ responsibilities set out on page 14 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 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.

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk 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 and to respond appropriately to fraud or suspected fraud identified during the audit.

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Independent Auditor’s Report to the members of Avenues East

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011, the charitable company’s governing document and Charities (Protection and Social Investment) Act 2016 and tax legislation. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report and Strategic Report, remaining alert to new or unusual transactions which may not be in accordance with the governing documents and inspecting correspondence with tax authorities.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to the charitable companies operating licenses, the Care Act 2014, Care Quality Commission regulations, health and safety regulations and the UK General Data Protection Regulations (UK GDPR). We performed audit procedures to inquire of management and those charged with governance whether the company is in compliance with these law and regulations and inspected correspondence with regulatory authorities.

The audit engagement team identified the risk of management override of controls and revenue recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, challenging judgments and estimates applied throughout the financial statements and testing of revenue cut off around the year end.

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Independent Auditor’s Report to the members of Avenues East

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

Use of our report

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

HANNAH CATCHPOOL (Senior Statutory Auditor)

For and on behalf of RSM UK AUDIT LLP, Statutory Auditor

Chartered Accountants 25 Farringdon Street London, EC4A 4AB

Date: 8th December 2025

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Docusign Envelope ID: F6953FFC-25B5-4892-BF22-2C3265489199

AVENUES EASTVENUES Statement of Financial Activities (Including Income and Expenditure Account) For the Year Ended 31 March 2025

Notes
INCOME
Donations and Grants
Donations
2
Charitable Activities:
Services to Adults
2
Total income
Expenditure on:
Charitable activities:
Services to Adults
3
Total expenditure
Net expenditure
Transfer between funds
10
Net movement in funds
Fund balances brought forward
10
Fund balances carried forward
10		 Unrestricted
Funds
Restricted
Funds
£000s
£000s
- -
- -
7,476
-
7,476
-
7,476
-
8,205
-
8,205
-
(729)
-
10
(10)
(719)
(10)
(559)
182
(1,278)
172		 Total
Total
2025
2024
£000s
£000s
-
9

-
9

7,476
7,636

7,476
7,636
7,476
7,645

8,205
8,076
8,205
8,076

(729)
(431)
-
-
(729)
(431)
(377)
54
(1,106)
(377)

The notes on pages 31 to 48 form part of these financial statements

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Docusign Envelope ID: F6953FFC-25B5-4892-BF22-2C3265489199

AVENUES EASTVENUES Balance Sheet As at 31 March 2025

2025 2024
Notes £000s £000s
FIXED ASSETS
Tangible assets 6 14 6
CURRENT ASSETS
Debtors 7 1,186 1,399
Cash at bank and in hand 20 12
1,206 1,411
CREDITORSfalling due within one year 8 2,326 1,791
NET CURRENT LIABILITIES (1,120) (380)
Pension scheme liability 13 - (3)
NET (LIABILITIES)/ASSETS (1,106) (377)
FUNDS
Unrestricted funds:
General funds 10 (1,278) (556)
Restricted funds 10 172 182
Pension scheme reserve 10 - (3)
TOTAL FUNDS (1,106) (377)

The notes on pages 31 to 48 form part of these financial statements

The financial statements were approved and authorised for issue by the Board of Trustees on 14 October 2025 and were signed on its behalf by:

(<jA47F8403F28949C...“Ds (Ct Terry Rich

Chair of the Board Date: 14 October 2025

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Notes to the Financial Statements

1. Accounting policies

Avenues East is a Charitable Company limited by guarantee, incorporated in England and Wales. The registered office is River House, 1 Maidstone Road, Sidcup, Kent, DA14 5TA. The Charity’s principal activities are disclosed in the Trustees’ Report.

The principal accounting policies adopted, judgements and key sources of estimation and uncertainty in the preparation of the financial statements are as follows;

a) Basis of preparation

The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006.

Avenues East meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

The charity is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepare publicly available consolidated financial statements, including this charity, which are intended to give a true and fair view of the assets, liabilities, financial position and surplus or deficit of the group. The charity has therefore taken advantage from the following exemption in its individual financial statements:

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts shown in these financial statements are rounded to the nearest £'000.

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AVENUES EASTVENUES

Notes to the Financial Statements

b) Preparation of accounts on a going concern basis

The financial statements have been prepared on a going concern basis and the position on going concern ultimately rests with the Group.

Avenues East, along with other providers in the sector, have faced a number of challenges in recent years. This has included an increase in National Living Wage, an increase in employers’ NI rate and a lower contribution threshold, all of which were beyond available funding, and an increase in delays from Commissioners to fill voids, all of which have had a significant financial impact. Robust response plans have been created and implemented and their positive impact is already evident.

Avenues East had a deficit of £729k in 2024/25 (2023/24: £431k) and a deficit budget for 2025/26, and year to date actuals at July 2025 are tracking in line with this. There is significant focus on cost control and exploring growth opportunities in Avenues East to increase scale and improve financial sustainability. We have secured a new contract with Norfolk which mobilises in April 2026 and will give Avenues East some economies of scale as it looks to return to a surplus position.

Avenues East holds a number of long-term contracts and provides a high quality of service provision, which ensures continued success in securing new contracts and retaining existing ones.

Going into 2025/26, there continues to be focus on recruitment and retention and lower dependency on agency staff. To date, Avenues has restructured its recruitment and onboarding functions to better respond to the challenging environment and reduce the need for agency coverage, while developing a relationship with a neutral vendor of agencies to reduce the price per unit.

External cost pressures including insufficient Local Authority/ Integrated Care Boards (ICB) funding negatively impacts the financial sustainability of our services and the Group. Avenues has partnered with Access Social Care; a leading charity supporting organisations to receive a fair price for care and support services whilst routinely and proactively challenging funding packages that fall below a sustainable level. Where negotiations have not been successful, contracts have been exited. Financial action plans are in place for every service that doesn’t achieve full cost recovery.

Avenues continuously monitors voids to enable prompt marketing and to take action to mitigate the financial impact. Strategic action includes investment in properties to ensure they are both desirable and fit for the future, together with robust marketing of our services and making full use of social and multimedia.

Fixed costs within Avenues East have been reduced through the sourcing of new, cost-effective office space. Our increased business development focus on Avenues

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AVENUES EASTVENUES

Notes to the Financial Statements

East will ensure they benefit from the same economies of scale as other subsidiaries within the Group.

The Avenues Group operates within a cross-guarantee and cash is pooled across the group to service working capital requirements.

Creditors primarily consist of intra-group balances, arising from group banking arrangements and intercompany recharges. External creditor balances are minimal.

Although this is a challenging landscape, the Trustees are assured that the issues Avenues East face are common among social care providers. Avenues has a wealth of skill and experience through its senior leadership teams, executive management team and its Trustees that enables the organisation to successfully navigate these challenges with agility as the Group has in the past. To this end, Trustees are confident of Avenues East’s success into the future and to meet its debts as they fall due for a period of at least 12 months from the date of approval of these accounts, and therefore have no material uncertainty over its going concern.

c) Income

Income is recognised when the Avenues East has entitlement to the resource and it can be measured with reasonable certainty. Income under care service agreements, rental income, management and consultancy fees are accounted for in the year in which the service is provided. Income received for specified future periods is deferred.

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

Income from government and other grants, whether 'capital' or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and not deferred.

Income received in advance of a service is deferred until the criteria for income recognition are met and are measured at the fair value of the consideration receivable.

d) Tangible Fixed Assets and Depreciation

Fixed assets are stated at cost. Depreciation is provided at the following annual rates in order to write off the assets over their estimated useful lives:

Office Equipment 15-25% per annum on cost Furniture and Equipment 15-25% per annum on cost

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AVENUES EASTVENUES

Notes to the Financial Statements

Depreciation of an asset commences from the point the asset is brought into use.

The Charity’s policy is to capitalise all assets over £500.

e) Pension Costs

Avenues East participates in a defined contribution pension scheme with Standard Life. The contributions paid to this scheme are charged to the Statement of Financial Activities as they fall due.

The Social Housing Pension (SHPS) defined contribution scheme (also referred to as 'Pensions Trust’) is an ongoing scheme. The contributions paid to this scheme are charged to the Statement of Financial Activities as they fall due.

The charity also contributes to the defined benefit Social Housing Pension Scheme (closed to future accrual), a multi-employer defined benefit scheme for certain Avenues East employees. Contributions are charged to the Statement of Financial Activities in the period to which they relate. The charity is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent basis and therefore as required by Section 28 of FRS102 accounts for its share as if it is a defined contribution scheme.

The different pension schemes are looked at in more detail in Note 13.

f) Operating leases

Operating lease rental costs are charged to the Statement of Financial Activities on a straight-line basis over the period of the lease.

g) Resources expended and the basis of apportioned costs

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. VAT which cannot be recovered is included as part of the expenditure to which it relates. A liability is recognised once a legal or constructive obligation has been entered into by the Charity.

h) Allocation of support costs

Support costs are those functions that assist the work of Avenues but does not directly undertake charitable activities. Support costs include back office costs, finance, human resources, payroll, IT and governance costs which supports Avenues charitable activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities, please see note 3 for details on the basis of allocation.

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Notes to the Financial Statements

i) Fund accounting

Unrestricted funds are funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are subject to specific restrictions imposed by donors. These funds are accounted for separately and are only available to be used in line with donor's requirements.

j) Taxation

The Company is a registered charity and as such its income and gains falling within Sections 471 to 489 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 are exempt from corporation tax to the extent that they are applied to its charitable objectives.

k) Debtors

Trade debtors and other income are recognised at the settlement amount due after trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

l) Cash and cash equivalents

Cash and cash equivalents includes cash at bank and in hand and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

m) Creditors and provisions

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

n) Financial Instruments policy

The Charity only has financial assets and liabilities of a kind that qualify as a basic financial instruments. Basic financial instruments are initially recognised at a transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

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AVENUES EASTVENUES

Notes to the Financial Statements

o) Management estimates and judgements

In the process of applying its accounting policies, the Charity is required to make certain estimates, judgements and assumptions that it believes are reasonable based on the information available. These judgements, estimates and assumptions affect the amounts of assets and liabilities at the date of the financial statements and the amounts of revenues and expenses recognised during the reporting periods presented. There are no significant judgements or estimates made.

2. Income

Grant and donations

Donations 2025
2024
£000s
£000s
- 9
- 9

Included in grants and donations are £nil (2024: £9k, of which £1k was restricted).

Income from charitable activities was £7,476k (2024: £7,636k) of which £nil (2024: £nil) was restricted.

3. Expenditure

2025
2024
£000s
£000s
Depreciation of owned tangible fixed
assets
2
1
Operating lease charges for land and
buildings
49
72
External Audit
11
11
Net expenditure for the year is stated after charging
Direct costs
Support
Costs
2025
2024
£000s
£000s
£000s
£000s
Charitable Activities
Services to Adults
7,007
1,198
8,205
8,076
2025 Total
7,007
1,198
8,205
2024 Total
6,970 1,106
8,076		 2025
2024
£000s
£000s
Depreciation of owned tangible fixed
assets
2
1
Operating lease charges for land and
buildings
49
72
External Audit
11
11
Net expenditure for the year is stated after charging
Direct costs
Support
Costs
2025
2024
£000s
£000s
£000s
£000s
Charitable Activities
Services to Adults
7,007
1,198
8,205
8,076
2025 Total
7,007
1,198
8,205
2024 Total
6,970 1,106
8,076
Direct costs
Support
Costs
2025
2024
£000s
£000s
£000s
£000s
7,007
1,198
8,205
8,076
Charitable Activities
Services to Adults
2025 Total
2024 Total
7,007
1,198
8,205
6,970 1,106
8,076

Expenditure on charitable activities was £8,205k (2024: £8,076k)

The charitable activities provided by Avenues East have been categorised to reflect the key services provided.

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AVENUES EASTVENUES Notes to the Financial Statements

Summary analysis of expenditure and related income for charitable activities

Income
Costs
Deficit		 Services to
Adults
Total
£000s
£000s
7,476 7,476
(8,205)
(8,205)
(729)
(729)

Analysis of governance and support costs

Avenues initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. Having identified its governance costs, the remaining support costs together with the governance costs are apportioned between the key charitable activities undertaken in the year. Support costs are then allocated on a blended percentage rate which provides a fair allocation of costs. Refer to the table below for the analysis of support and governance costs.

Support costs
Governance
EMT & Governance
Group Finance
Group HR
Group Office Management
Group Practice Development & Assurance		 Services to
Adults
2025 Total
2024
Total
£000s
£000s
£000s
1,187 1,187 1,095
11
11
11
1,198
1,198
1,106
General support Governance
function
2025 Total
2024
Total
£000s
£000s
£000s
£000s
270
-
270
249
398
11
409
372
243
-
243
232
177
-
177
157
99
-
99
96		 Services to
Adults
2025 Total
2024
Total
£000s
£000s
£000s
1,187 1,187 1,095
11
11
11
1,198
1,198
1,106
1,187
11
1,198
1,106

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Notes to the Financial Statements

4. Trustees’ remuneration

The trustees of Avenues Group are the directors of the company. During the year, 9 (2024: 11) member(s) of the Avenues Group Board have been reimbursed for expenses £4.7k (2024: £4.6k).

J Land, Chief Executive, is also a Trustee of Avenues Group. During the 2024/25 financial year she received £167k (2024: £155k) in remuneration including £13k of pension contributions (2024: £14k) from The Avenues Trust Group in respect of her role as Chief Executive. No remuneration or pension contributions were paid in relation to her role as a trustee (2024: none).

N Ford, Group Director of Finance, is also a Trustee of Avenues Group. During the 2024/25 financial year she received £130k (2024: £117k) in remuneration including £9k of pension contributions (2024: £9k) from The Avenues Trust Group in respect of her role as Group Finance Director. No remuneration or pension contributions were paid in relation to her role as a trustee (2024: none).

The Directors of the Charity are remunerated by the Avenues Trust Group only to the extent permitted by the Charity's Articles of Association. A further payment was made in the year of £6.7k (2024: £6.4k) which is a collective premium to cover Trustees Liability insurance (including £0.7k relating to Autism Hampshire exTrustees; 2024 £0.7k).

No other Trustees received remuneration or pension contributions in the current or preceding period.

5. Staff costs and key management personnel

The Directors of the company are remunerated by The Avenues Trust Group and therefore not included in the disclosure below.

The number of employees whose emoluments exceeded £60k were:

2025 2024
No. No.
£60k - £70k 1 1

The total number of staff employed by the charity as well as the full-time equivalents are as follows:

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Notes to the Financial Statements

2025 2024 2025 2024
No. No. FTE FTE
Office staff 6 5 6 5
Care staff 231
 204
 140 122
Bank contract staff
Total		 21

**258 **		 23


232		 -
146		 -
127
Wages and salaries
Staff costs		 2025
£000s
5,322		 2024
£000s
5,235
Social security costs 354 331
Pension costs (Note 13) 168 116
Agencies 585 728
6,429 6,410

Included in the costs above are the costs of staff on bank contracts. The contracts of employment for bank staff are held with The Avenues Trust Group and the costs are charged to Avenues East for work provided.

The key management personnel of Avenues East comprise the trustees including; the Group Chief Executive, Group Deputy of Operations, Group Director of Finance, Group Director of People and Organisational Development, Group Director of Business Development, and Group Director of Housing and Development. The Avenues East share of these costs along with cost of the Regional Director are shown below:

Wages and salaries
Social security costs
Pension costs		 2025
2024
£000s
£000s
170
152
22
20
15
15
207
187

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AVENUES EASTVENUES

Notes to the Financial Statements

6. Tangible fixed assets

----- Start of picture text -----
Furniture Office Total
and
equipment
Equipment
£000s £000s £000s
Cost
At 1 April 2024 116 159 275
Additions 10 - 10
Costs as at 31 March 2025 126 159 285
Depreciation
At 1 April 2024 110 159 269
Charge for year 2 - 2
At 31 MARCH 2025 112 159 271
Net book value
At 31 MARCH 2025 14 - 14
At 31 March 2024 6 - 6
7. Debtors
2025 2024
£000s £000s
Contract fees receivable 653 1,041
Prepayments and accrued income 149 73
Other Debtors 38 1
Amounts due from group undertakings 346 284
1,186 1,399
8. Creditors
2025 2024
£000s £000s
Trade creditors 415 455
Tax and social security 95 111
Other creditors 38 4
Accruals & deferred income 275 347
Amount due to group undertakings 1,503 874
2,326 1,791
----- End of picture text -----

Avenues Trust Group has collected funds and paid salaries and suppliers on behalf of Avenues East during the year. These have resulted in intra-group balances at the year end. Avenues Trust Group manages the cash on behalf of the group under a group cash pooling arrangement and across the group these balances net off.

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Notes to the Financial Statements

The company has entered into a Composite Accounting Agreement providing an unlimited guarantee to Barclays Bank Plc. The group’s overdraft with Barclays Bank Plc was £294k at the 31 March 2025 (2024: £724k).

9. Movements in deferred income

2025 2024
£000s £000s
Deferred income at the beginning of the year 181 25
Income recognised in the year (181) (25)
Income deferred in the current year 31 181
Income deferred at the year end 31 181

Deferred income comprises contract fee income which relates to services that will be provided in the future periods, and grants and donation where milestones and conditions for recognition are expected to be met in future periods.

10. Analysis of movements in funds

Unrestricted funds
General reserve
Pension reserve
Restricted funds
Partnership Working
Disability Forum for Suffolk
Disability Involvement Day
Disability Sport Project
Hope House Holiday Fund
Leisure – RHS Games
Leisure - Swimming
Teaming Up
Big Lottery
Employment Service
CSU Donations
Total Funds		 £000s
£000s
£000s
£000s
£000s
(556) 7,476
(8,205)
7
(1,278)
(3)
- -
3
-
9
- - -
9
4
- - -
4
11
- - -
11
21
- - -
21
4
- -
(4)
-
3
- - -
3
35
- - -
35
62
- - -
62
12
- - -
12
15
- - -
15
6
- -
(6)
-
Expenditure
Balance at
31 March
2025
Balance at
31 March
2024
Income
Transfer
between
funds
182
- -
(10)
172
(377) 7,476
(8,205)
-
(1,106)

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Notes to the Financial Statements

10. Analysis of movements in funds (continued)

Analysis of movements in funds Balance at **Income ** Expenditure Transfer Balance at
(prior year) 31 March between 31 March
2023 funds 2024
Unrestricted funds £000s £000s £000s £000s £000s
General reserve (132) 7,636 (8,076) 16 (556)
Pension Reserve (8)
 - - 5 (3)
Restricted funds
1 Partnership Working 9
 - - -
9
2 Disability Forum for Suffolk 4
 - - -
4
3 Disability Involvement Day 11
 - - -
11
4 Disability Sport Project 22
 - - (1) 21
5 Hope House Holiday Fund 4
 - - -
4
6 Leisure – RHS Games 3
 - - -
3
7 Leisure - Swimming 35
 - - -
35
8 Teaming Up 62
 - - -
62
9 Big Lottery 12
 - - -
12
10 Employment Service 15
 - - -
15
11 CSU Donations 17
 9 - (20) 6
194 9 - (21) 182
Total Funds 54 7,645 (8,076) -
(377)

Fund transfer in the current year:

  1. Hope House Holiday Fund - Funds spent to provide holidays in accordance with the fund.

  2. CSU Donations - Funds used to support the delivery of unfunded activities in the CSU project in Avenues East. The CSU project has now been fully spent in the year with closing balance of nil.

Designated Pension Reserve

The pension reserve represents the movements in respect of the defined benefit pension schemes in which the charity participates.

Restricted funds

1) The Partnership Working fund is restricted to supporting the costs of user involvement in multi-agency working to promote the inclusion of disabled people in county and local initiatives.

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Notes to the Financial Statements

2) Disability Forum for Suffolk fund is for work relating to representing and consulting with disabled people in Suffolk, as well as for organising events to bring disabled people in Suffolk together.

3) Disability Involvement Day fund is restricted to supporting the costs of organising the forum to meet representatives from disability organisations and statutory organisations across Suffolk.

6 +7) The “Leisure” funds are restricted to the various Leisure Activities services. The Learning through Leisure fund is restricted to this service.

8) The Teaming Up fund is restricted to various Teaming Up activities.

9) The Big Lottery fund is restricted to supporting disabled people during the transitional period of their lives enabling them to access volunteer and work experience opportunities within their local community.

10) The Employment Service fund is restricted to helping young people to gain work experience or volunteering enabling them to gain valuable life skills.

11) CSU Donations is community support donation restricted to helping disabled people to take part in social activities, for examples games and pub quiz.

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AVENUES EASTVENUES

Notes to the Financial Statements

11. Analysis of net assets between funds

Fund balances at 31 March 2025
are represented by:
Tangible Assets
Net current assets / (liabilites)
Long Term Liabilities
Total
Analysis of net assets between
funds - previous year
Fund balances at 31 March 2024
are represented by:
Tangible Assets
Net current assets
Long Term Liabilities
Total		 Restricted
Unrestricted
Unrestricted
Pension
2025
Funds
Funds
Fund
Total
£000s
£000s
£000s
£000s
- 14 -
14
172
(1,292)
-
(1,120)
- -
--
172
(1,278)
-
(1,106)
Restricted
Unrestricted
Unrestricted
Pension
2024
Funds
Funds
Fund
Total
£000s
£000s
£000s
£000s
- 6
-
6
182
(562)
-
(380)
-
-
(3)
(3)
182
(556)
(3)
(377)

12. Operating lease commitments

The total minimum lease payments under non-cancellable operating lease are as follows:

Land and Buildings
Amounts due:
Less than one year
Between one and five years
More than five years
Total		 2025
2024
£000s
£000s
49
72
196
196
489
538
734
806

13. Pension costs

Avenues East has contributed to both defined benefit and defined contribution schemes during the year and defined benefit schemes are accounted for as if they were defined contribution schemes if required by FRS 102 Section 28 'Employee benefits'. The total cost to the charity for the year ended 31 March 2025 in respect of pension contributions, which have been allocated between resources expended categories in proportion to staff costs and charged to the Statement of Financial Activities as appropriate, are as follows;

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Notes to the Financial Statements

Pensions Trust SHPS
Pensions Trust Closed scheme
Per Note 5		 2024/25
2023/24
2024/25
2023/24
£000s
£000s
No.
No.
168
113
166
141
-
3
-
4
168
116

Defined Contribution Schemes

The Social Housing Pension (SHPS)

The Social Housing Pension (SHPS) defined contribution scheme (also referred to as 'Pensions Trust') is an ongoing scheme. The contributions paid to this scheme by the group are charged to the Statement of Financial Activities as they fall due.

The Pension Trust – Social Housing Pension Scheme (Closed Scheme)

Avenues East participates in the Social Housing Pension Scheme (the Scheme). The Scheme is funded and is contracted-out of the State Pension scheme.

The Trustee commissions an actuarial valuation of the Scheme every three years. The main purpose of the valuation is to determine the financial position of the Scheme in order to address the level of future contributions required so that the Scheme can meet its pension obligations as they fall due.

The company participates in the scheme, a multi-employer scheme which provides benefits to some 950 non-associated employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore, it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore, the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

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AVENUES EASTVENUES

Notes to the Financial Statements

The Trustees are aware that the Court of Appeal has upheld the decision in the Virgin Media vs NTL Pension Trustees II Limited case. The decision puts into question the validity of any amendments made in respect of the rules of a contracted-out pension scheme between 6 April 1997 and 5 April 2016. The judgment means that some historic amendments affecting s.9(2B) rights could be void if the necessary actuarial confirmation under s.37 of the Pension Schemes Act 1993 was not obtained.

On the 5 June 2025, the Government announced its intention to introduce legislation to give affected pension schemes the ability to retrospectively obtain written confirmation that historical benefit changes met the necessary standards. However, details of the legislation have not been announced.

Until further investigations have been completed by the Social Housing Pension Scheme trustees and the TPT Retirement Solutions Growth Plan scheme trustees and any legislative action taken by the government, the potential impact if any, on the valuation of scheme liabilities remains unknown.

TPT have identified uncertainties over whether past amendments to a number of scheme benefit areas were valid. TPT have presented papers to Court in 2025 asserting that the amendments were valid and have been administered correctly. A decision by the Court is expected towards the end of 2025, but the timings could change. If the Court decides against the Trustee, this will result in additional liabilities for most TPT schemes. The SHPS actuary (Mercer) has estimated that this issue, at a scheme wide level, might be expected to result in potential additional liabilities of around 3.9% which based on Avenues’ 2022 estimated funding liabilities would be in the region of £300k. In the event of an unfavourable ruling, the impact for Avenues will not be known for some time and would likely result in an extension to Avenues’ existing liability payment schedule.

A full actuarial valuation for the scheme was carried out at 30 September 2023. This valuation showed assets of £514.9m, liabilities of £531.0m and a deficit of £16.1m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows:

Deficit contributions

From 1 April 2025 to 31 January £2,100,000 per annum 2028 (payable monthly)

Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies.

Note that the scheme's previous valuation was carried out with an effective date of 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m

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Notes to the Financial Statements

and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows:

From 1 April 2022 to 31 January £3,312,000 per annum 2025: (payable monthly)

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

Present values of provision
Present values of provision Mar-25 Mar-24
£000s £000s
Present value of provision - 3
Reconciliation of opening and closing provisions
Year ending Year ending
Mar-25 Mar-24
£000s £000s
Provision at start of period 3 8
Deficit contribution paid (3) (5)
Provision at end of period - 3
ASSUMPTIONS Mar-25 Mar-24 Mar-23 Mar-22
% per % per % per % per
annum annum annum annum
Rate of discount 4.84 5.31 5.52 2.35

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

14. Investment policy and position

The banking activities for Avenues East are managed by The Avenues Trust Group.

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AVENUES EASTVENUES Notes to the Financial Statements

15. Related party transactions

As a member of the Avenues Trust Group, Avenues East uses central services to carry out its operations. The group makes a charge for the central costs based ratio of the salary costs of Avenues East against the total salary costs of the group.

In addition, Avenues Group acts as the central banker for Avenues East, paying salary costs and creditors and receiving cash from customers. There were no write offs during the year.

Balance owed at brought forward
Transfers
Recharges of head office costs
Balance owed at carried forward
Payroll services provided by group undertakings
Receipts taken on behalf of group undertakings
Payments made by group undertakings		 2025
2024
£000s
£000s
(588)
253
(4,797)
(4,522)
7,579
7,048
(2,197)
(2,262)
44
-
(1,198)
(1,105)
(1,157)
(588)

16. Ultimate parent undertaking

The charity is consolidated into its ultimate parent undertaking, The Avenues Group, a charitable company (charity number 1130473, company number 03804617), limited by guarantee, incorporated in the UK. The consolidated financial statements of The Avenues Trust Group can be obtained by writing to The Avenues Trust Group, River House, 1 Maidstone Road, Sidcup, Kent, DA14 5TA.

The principal activity of The Avenues Trust Group is the provision of professional, high quality, not-for-profit support services to people with complex or challenging needs. The Parent exercises control through the power of appointment and removal of Trustees on subsidiary Boards.

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