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2025-05-30-accounts

HOMELESS ACTION

(A Company Limited by Guarantee)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 MAY 2025

Company Number: 3366712 Registered Charity Number: 1063208

HOMELESS ACTION

Financial Statements

For the year ended 30 May 2025

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||||| |---|---|---|---| |Contents|Page| |Reference and Administrative|Details|1| |Trustees’|Annual|Report|2-6| |Independent Auditor’s|Report|7-10| |Statement of Financial Activities|ctl| |Balance Sheet|12| |Statement of Cash|Flows|13| |Notes to the|Financial Statements|14-29|

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HOMELESS ACTION

Reference and Administrative Details

For the year ended 30 May 2025

Registered Charity Name: Homeless Action

Charity Registration Number: 1063208 Company Registration Number: 3366712 Principal Office: 81 Abingdon Street Blackpool Lancashire FY1 1PP Registered Office: 81 Abingdon Street Blackpool Lancashire FY1 1PP Trustees: Mrs L Edwards - Chair Dr M O'Donnell Mr A Oldfield Mr S Robinson Mrs E Warren Solicitors: Napthens Jubiliee House East Beach Lytham St Annes Lancashire FY8 SFT Bankers: Lloyds Bank 25-27 Birley Street Blackpool Lancashire FY1 1EG Auditor: Mitchell Charlesworth (Audit) Limited 3rd Floor 44 Peter Street Manchester M2 5GP

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HOMELESS ACTION

Trustees’ Annual Report For the year ended 30 May 2025

The Trustees are pleased to present their annual directors’ report together with the financial statements of the charity for the year ended 30 May 2025, which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes. On 10“ March 2023 the name of the charity was changed from The Ashley Foundation to Homeless Action.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, 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) (effective 1 January 2019).

Objectives and activities

The principal objective of the charity throughout the year was the relief of poverty by the provision of accommodation to persons in need and providing support to clients to assist them with the wider issues of homelessness. This was achieved by the operation of 88 hostel rooms up to February 2025 and then 105 rooms following the successful completion of the Elm House extension project, with one further room to be added in 2025-26 (2024: 88) hostel rooms spread across 4 sites (2024: 4) in Blackpool and Sunderland, 83(2024: 83) self-contained Move On flats across 19 sites (2024: 19) in Blackpoo! and Sunderland. In addition, in June 23 a further 49 hostel rooms were provided on 1 site in Blackburn prior to the termination of the lease and associated management agreement. The properties in Blackpool are all owned by the Charity and those in Sunderland operated on behalf of other parties under the terms of long-term Management Agreements.

In the hostels, daily support is provided to the clients assisting them with daily living skills. The clients in the flats are supported to live independently.

During the Covid pandemic additional accommodation was provided in both Blackpool and Sunderland. The provision of accommodation in Sunderland via creative use of existing accommodation has continued. In addition, the Charity supported the Severe Weather Emergency Provision and Emergency Weather provision requirements of Blackpool Council in the winter of 24-25.

The Charity’s Community Café & Hub in Blackpool, which opened in 2019 had to close at the end of December 2024 as a result of a serious flood in the property. Following a thorough evaluation the Trustees reluctantly decided that the Cafe should close permanently due to financial reasons. Arrangements were subsequently made for residents to volunteer in the kitchens of the Blackpool Hostels to ensure that the valuable work experience could continue.

The Trustees are clear that the objectives and activities of Homeless Action are carried out for public benefit. They have referred to the guidance contained in the Charity Commisston general guidance on public benefit when reviewing the purpose and objectives and when planning future activities. In particular, the Trustees consider how planned activities contribute to the aims and objectives they have set.

Achievements and performance

Provision of accommodation - During the year accommodation was provided for 275 homeless individuals in Blackpool (2024: 247) and 165 in Sunderland (2024: 162).

There continues to be high demand for accommodation from the local authorities in both Sunderland and Blackpool resulting in high occupancy levels in both areas.

Partnership working - During the year we continued to work closely with our local authorities and other providers in Blackpool and Sunderland.

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HOMELESS ACTION

Trustees’ Annual Report (continued) . For the year ended 30 May 2025

Hostel Developments — following the purchase in 2023 of the property adjacent to Elm House in Derby Road, Blackpool, a contract was awarded in April 2024 for the redevelopment of this property, which included combining it with Elm House. This work completed in February 2025, resulting in an expanded Elm House with 45 beds. The additional rooms were very quickly filled from 17" March 2025 onwards. Renovation of the existing Elm House commenced in April 2025 and is on-going, providing one further additional bed. The newly completed facility now contains disabled facilities and additional recreational facilities for our residents. The Trustees are extremely grateful to the Garfield Weston Foundation who very generously provided grant funding of £150,000 for this work

In addition to Elm House, the ground floor of Oak House was renovated and modernised between September 2024 and February 2025.

Residents Support - During the year we have continued to develop our support provision for our residents, working closely with all our residents to enable them to obtain employment, where appropriate, and to live independently. We continued to provide classes in Maths, English, IT skills, budgeting and life skills, alongside recreational activities including gym, boxing, walking and handicrafts. This work was supported by the grant funding of £215,962 from the Know Your Neighbourhood fund (via the Community Foundation), for a 21 month period, which commenced in July 2023.

The aim of the grant is to reduce isolation. We are providing support through skills workshops including finance, IT, Life Skills, sports and leisure, volunteering and job training including construction and hair and beauty.

Financial review

The statements of financial activities are set out on page 10 of the financial statements.

Consolidated income for the year was £3,792,342 (2024: £2,990,502), and consolidated expenditure for the year was £3,144,123 (2024: £2,775,138).

The overall consolidated surplus for the year was £648,219 (2024: surplus of £215,364). The surplus on unrestricted funds was £519,481 (2024: £199,744), an increase of £319,737. The increase was due to the impact of an out of court settlement reached with the former CEO and one of the previous trustees, offset by renovation costs at Elm House. Inflationary pressures are largely recovered in increased rents and service charges.

Reserves/Reserves policy

Total reserves as at 30 May 2025 are £3,959,683 (2024: £3,311,464), of which £3,807,610 (2024: £3,288,129) are held in general unrestricted reserves and £152,073 (2024: £23,335) are held in restricted reserves. Within the unrestricted reserves are designated funds totalling £183,221 (2024: £192,286). See note 24 for further details.

Reserves are defined as unrestricted funds that are freely available to spend on charitable purposes. Reserves should be held to service an unexpected need for funds, covering unforeseen day-to-day operational costs, a shortfall in income or to fulfil our obligations. Our reserves policy is designed to reflect the underlying risks facing the charity and to ensure that we have appropriate level of reserves to safeguard our operations and services to homeless people, in particular the opening and initial operating of new buildings. Accordingly, we aim as far as reasonably practicable, to maintain reserve funds of three months operational running costs. This policy is reviewed annually. Based on the general free reserves of £0.630 million (net of funds represented by property and associated borrowing and designated funds), 2.6 months reserves are in place. The Trustees consider the level of reserves to be sufficient at the moment but continue to review and monitor this.

Going concern

Following a review of the financial position at the date of signing these accounts and projections for the following 12 months the Trustees consider that the charity is a going concern.

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HOMELESS ACTION Trustees’ Annual Report (continued) For the year ended 30 May 2025

Trading subsidiary

The charity's wholly owned subsidiary, SHOP2023 CIC ceased operating its charity shop in March 2020 as a result of the Covid-19 pandemic, and the lease which ended in August 2021 was not renewed. The company was dissolved on 29% April 2025, and as a result the Charity’s investment in the subsidiary of £1 has been written of and Charity only accounts prepared for the year ended 30% May 2025.

Structure, governance, and management

Governing document

The charity was incorporated in May 1997. Homeless Action is a company limited by guarantee governed by its Memorandum and Articles of Association dated 7 May 1997, as amended by special resolutions dated 4 September 1997, 4 January 2000, 5 January 2012, and 11 June 2021.

Governance

Introduction

On 20 March 2020, the Charity Commission opened a statutory inquiry into the affairs of the charity and on 13" January 2023 published its findings. The report can be found on the Charity Commission website. As a result of this the Charity commenced legal proceedings against Lee Dribben the former CEO of the Charity, and his son Ashley Dribben, a former Trustee of the Charity and in February 2025 an out of court settlement was reached . The Trustees are pleased that this matter has now been concluded so that all efforts can now be directed to the future of the Charity.

In accordance with Articles 31 & 32 of the company’s Articles of Association Mrs Elizabeth Warren, and Dr Mark O’Donnell resigned as Directors in November 2025 and were unanimously re-elected for a further term of office.

Appointment of trustees

Other than in the exceptional circumstances outlined in the Charity Commission Report, when new Trustees are required, positions will be advertised locally, and a formal selection process will take place. This will also involve the potential new trustee(s) visiting local hostels and flats and also attending a trustee meeting to gain an appreciation of the workings of the charity.

Trustee induction and training

Trustee induction involves visits to see the premises and to meet the management and staff teams, together with time spent with the Chief Executive and Senior Managers to better and more fully understand the activities of the charity.

Related parties

In addition to the trustees who served during the year, the Trustees consider the following individuals and organisations to be related parties for the purposes of disclosure of related party transactions: Mrs W Swift and SHOP2023 CIC.

Details of related party transactions required to be disclosed in accordance with the relevant legislation and guidance can be found in Note 22 on Page 25.

Fundraising standards

The charity does not carry out significant fundraising activities.

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HOMELESS ACTION

Trustees’ Annual Report (continued) For the year ended 30 May 2025

Reference and administrative details

Reference and administrative details are shown in the schedule of members of the board and professional advisers on page1 of the financial statements.

Directors and Trustees

The directors of the charitable company (the charity) are its trustees for the purpose of charity law and throughout this report are collectively referred to as the trustees. The trustees who served the company during the period of the report were as follows:

Key management personnel: Trustees

Chair: Mrs L Edwards

Dr M O'Donnell

Mr A Oldfield

Mr S Robinson Mrs E Warren

Key management personnel: Principal staff

Chief Executive Officer: Mrs W Swift

Trustees’ responsibilities

The trustees (who are also directors of Homeless Action 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 the affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group 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 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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HOMELESS ACTION

Trustees’ Annual Report (continued) For the year ended 30 May 2025

Insofar as the current trustees are aware,

Mrs L Edwards - Chair Trustee

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HOMELESS ACTION

tndependent Auditor’s Report to the Members of Homeless Action For the year ended 30 May 2025

Opinion

We have audited the financial statements of Homeless Action for the year ended 30 May 2025 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Cash Flow Statement and the Notes to the Financial Statements, including a Summary of Significant Accounting Policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 applicable law and International Standards on Auditing (UK) (ISAs (UK)). 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 belleve 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 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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HOMELESS ACTION

independent Auditor’s Report to the Members of Homeless Action [continued] For the year ended 30 May 2025

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 cur 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 materiafly 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 Compantes 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report.

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

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HOMELESS ACTION

Independent Auditor's Report to the Members of Homeless Action {continued} For the year ended 30 May 2025

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors 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 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 company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit ofthe financial statements

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

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

Extent to which the audit was considered capable of detecting Irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:

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26 November

HOMELESS ACTION

Statement of Financial Activities (including Income and Expenditure Account) For the year ended 30 May 2025

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||||||||||| |---|---|---|---|---|---|---|---|---|---| |Notes|Restricted|Unrestricted|Total|Funds|Restricted|Unrestricted|Total Funds| |Funds|Funds|2025|Funds|Funds|2024| |£|£|£|£|£|£| |Income| |Donations|and|legacies|5|225,983|28|226,011|141,279|3,713|144,392| |Income from|charitable| |activities:| |Operation|of accommodation| |and|café|6|-|2,983,198|2,983,198|-|2,808,793|2,808,793| |Income from other trading| |activities| |Investment income|- bank| |interest|7|-|27,035|27,035|-|27,385|27,385| |Other income|-|556,098|556,098|-|9,332|9,332| |Total incoming resources|225,983|3,566,359|3,792,342|141,279|2,849,223|2,990,502| |Expenditure| |Expenditure on charitable| |activities:| |Operation|of accommodation| |and|café|8|(39,683)|(2,958,193)|(2,997,876)|(125,659)|(2,649,479)|(2,775,138)| |Expenditure from other| |activities| |Other expenditure|-|(146,247)|(146,247)|-|-|-| |Total expenditure|(39,683)|(3,104,440)|(3,144,123)|(125,659)|(2,649,479)|(2,775,138)| |Transfers|(57,562)|57,562|-|-|-|-| |Net incoming resources for| |the year|12|128,738|519,481|648,219|15,620|199,744|215,364| |Total funds|brought forward|23,335|3,288,129|3,311,464|7,715|3,088,385|3,096,100| |Total funds carried forward|152,073|3,807,610|3,959,683|23,335|3,288,129|3,311,464|

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The Statement of Financial Activities includes all gains and losses in the year and therefore a Statement of Total Recognised Gains and Losses has not been prepared.

The notes on pages 13 to 31 form part of these financial statements

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HOMELESS ACTION

Balance Sheet

As at 30 May 2025

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|||||| |---|---|---|---|---| |Notes|2025|2024| |£|£| |Fixed|assets| |Tangible assets|16|3,408,315|2,528,720| |Investments|17|-|1| |Total fixed assets|3,408,315|2,528,721| |Current assets| |Debtors|18|223,406|300,456| |Cash|at bank and|in hand|813,536|971,129| |Total current assets|1,036,942|1,271,585| |Creditors: Amounts falling due within one year|19|(224,102)|(208,346)| |Net current assets|812,840|1,063,239| |Total|assets less current liabilities|4,221,155|3,591,960| |Creditors: Amounts falling due after more than one year|20|(261,472)|(280,496)| |Net assets|3,959,683|3,311,464| |The funds of the charity| |Restricted|income funds|24|152,073|23,335| |Unrestricted|income funds|23|3,807,610|3,288,129| |Total funds|3,959,683|3,311,464|

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The financial statements were approved by the Board ofTrustees on of y -f ( 2025 and are signed on their
™e LA ad)WAM”
Mrs L Edwards
Chair of Trustees
Charity Number: 1063208 Company Number: 3366712
The notes on pages 14 to 29 form part of these financial statements
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HOMELESS ACTION

Statement of Cash Flows For the year ended 30 May 2025

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|||||| |---|---|---|---|---| |Notes| |2025|2024| |£|£| |Cash|generated|from/(used|in)|operating| |activities|27|633,477|340,586| |Cash flow from|investing activities| |Interest income|27,035|27,385| |Grant income|150,000|-| |Purchase of tangible fixed assets|(953,222)|(136,505)| |Disposal|of tangible fixed|assets|1,944|-| |Cash flow from|investing|activities|(774,243)|(109,120)| |Cash flow from financing activities| |Repayments|of loans|(16,827)|(15,233)| |Cash|used|in financing activities|(16,827)|(15,233)| |Decrease|in cash and|cash equivalents in| |the year|(157,593)|216,233| |Cash and|cash|equivalents at the|beginning| |of the year|971,129|754,896| |Total cash and|cash equivalents|at the end|813,536|971,129| |of the year|—|Oe|

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HOMELESS ACTION

Notes to the Financial Statements For the year ended 30 May 2025

  1. Company information

Homeless Action is a private company limited by guarantee, domiciled and incorporated in England and Wales. The registered office is 81 Abingdon Street, Blackpool, Lancashire, FY1 1PP.

  1. Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019) - (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of ireland (FRS102) and the Companies Act 2006.

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

Homeless Action 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 note(s).

(b)

Going Concern

At the time of approving the financial statements the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus, the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

(c)

Funds structure

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HOMELESS ACTION

Notes to the Financial Statements For the year ended 30 May 2025

2. Accounting polictes [Continued]

(d) Income recognition

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

Income from donations and grants that provide core funding or are of a general nature is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

Income from government and other grants, whether ‘capital’ grants 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 is not deferred. Grants are deferred to future periods only when this is specified by the funder or other preconditions of the fund are not yet met.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably, and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Investment income is recognised on a receivable basis.

(e) Management agreements

The charity has management agreements in place with both Falcon Housing Association CIC and Places for People to manage the provision of accommodation for the homeless in properties in Sunderland. The agreement with Falcon is for ‘move-on’ flats and Falcon is the leaseholder of these properties. The agreement with Places for People is for the Poplar House Hostel and Places for People are the owners of this property. The terms of both agreements result in the charity receiving income from the respective landlords equal to the amounts that they receive as housing benefit from the council. This income is included in Income from Charitable Activities. Expenditure incurred in providing the service required under the terms of the agreements is included in Expenditure on Charitable Activities.

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HOMELESS ACTION

Notes to the Financial Statements For the year ended 30 May 2025

2. Accounting policies [Continued]

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(f) Expenditure
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Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

(g) ‘ Fixed assets

Individual fixed assets costing £2,000 or more are initially recorded at cost.

Depreciation is provided on all tangible fixed assets at the rates listed below so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life:

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Freehold land and buildings 2% per annum on cost
Plant and machinery 10% per annum on cost
Office equipment 33.3% per annum on cost
Motor vehicles 16.7% per annum on cost
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(h) ——s investments
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Fixed asset investments are included at market value at the Balance Sheet date.

Realised gains and losses on investments are calculated as the difference between sales proceeds, and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal.

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.

(i) Operating leases Rentals payable under operating leases are charged in the Statement of Financial Activities on a straight-line basis over the lease term.

(i) Pensions The charity operates an auto enrolment defined contribution scheme for all eligible employees in line with the current legislation.

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HOMELESS ACTION

Notes to the Financial Statements For the year ended 30 May 2025

2. Accounting policies [Continued]

(k) Debtors

Other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid after taking any discount due.

()) Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments.

(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 a transfer of funds to a third party at the amount due to settle the obligation and can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discount due.

(n) Financial instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

3. Legal status of the charity

The charity is a private company limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £10 towards the assets of the charity in the event of liquidation. The number of members at the year-end was six (2024: six).

4. Judgements and key sources of estimation uncertainty

In the application of the charity'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.

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HOMELESS ACTION

Notes to the Financial Statements For the year ended 30 May 2025

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|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |5.|Grants,|donations, and|Restricted|Unrestricted|Total|Funds|Restricted|Unrestricted|Total|Funds| |legacies|Funds|Funds|2025|Funds|Funds|2024| |£|£|£|£|£|£| |Donations and|legacies| |Appeals and|donations|-|28|28|-|2,713|2,713| |Grants|225,983|-|225,983|141,279|1,000|142,279| |Total per statement of funds|225,983|28|226,011|141,279|3,713|144,992| |The income from|grants,|donations|and|legacies was £226,011|(2024: £144,992)|of which £28 was|unrestricted| |(2024: £3,713)|and £225,983|restricted|(2024:|£141,279).| |6.|incoming resources from|Restricted|Unrestricted|TotalFunds|Restricted|Unrestricted|Total Funds| |charitable activities|Funds|Funds|2025|Funds|Funds|2024| |£|£|£|£|£|£| |Charitable|activities| |Housing|benefit|- hostels and| |flats|-|2,721,218|2,721,218|-|2,508,003|2,508,003| |Income from|hostels and|flats|-|-|-|-|-|-| |Residents’|contributions|-| |hostels and flats|-|151,226|151,226|-|158,539|158,539| |Emergency Beds Scheme|-|38,423|38,423|-|35,295|35,295| |Community Café & Hub| |takings|-|46,770|46,770|-|87,644|87,644| |Other income|-|25,561|25,561|-|19,312|19,312| |Total income from charitable|-|2,983,198|2,983,198|-|2,808,793|2,808,793| |activities|wee| |7.|investment income|Restricted Unrestricted|TotalFunds|Restricted|Unrestricted|Total|Funds| |Funds|Funds|2025|Funds|Funds|2024| |£|£|£|£|£|£| |Bank|interest|-|27,035|27,035|-|27,385|27,385| |Total investment|income|-|27,035|27,035|-|27,385|27,385|

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Notes to the Financial Statements For the year ended 30 May 2025

8. Expenditureoncharitableactivities -Currentyear Community Accom TotalFunds
Café&Hub Provision 2025
£ £ £
Wagesand salaries costs 37,135 1,188,781 1,225,916
Staffingcosts 4,112 6,231 10,343
Premisescosts 2,895 1,040,004 1,042,899
Bankcharges - 133 133
Bad debt - (96) (96)
Office costs 421 9,623 10,044
Food costs 25,496 133,304 158,800
Othercosts 1,362 8,979 10,341
Laundryandcleaningcosts 1,993 14,004 15,997
Motorand travel costs - 16,933 16,933
LegalCosts - 25,601 25,601
Profit/lossondisposal - (9,848) (9,848)
Depreciation - 69,162 69,162
Governance costs - 8,460 8,460
Support costs - 413,191 413,191
Total 73,414 2,925,793 2,997,876
Expenditureoncharitable activities -Prioryear Community Accom Total Funds
Café&Hub Provision 2024
£ £ £
Wagesand salariescosts 64,857 1,039,335 1,104,192
Staffingcosts 6,634 13,485 20,119
Premises costs 10,640 916,702 927,342
Servicecharges -Blackburn Hostels - 34,390 34,390
Office costs 892 14,413 15,305
Food costs 51,944 108,542 160,486
Othercosts 1,102 9,678 10,780
Laundryand cleaningcosts 4,087 10,645 14,732
Motorand travel costs - 14,294 14,294
Legal Costs - 17,507 17,507
Depreciation - 53,503 53,503
Governancecosts - 8,053 8,053
Supportcosts - 394,435 394,435
Total 140,156 2,634,982 2,775,138

Expenditure on charitable activities was £2,999,207 (2024: £2,775,138) of which £2,959,524 was unrestricted (2024: £2,649,479) and £39,683 restricted (2024: £125,659).

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Notes to the Financial Statements For the year ended 30 May 2025

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||||||| |---|---|---|---|---|---| |9.|Summary of analysis of expenditure and related|Community|Accom|Total Funds| |income for charitable activities|- Current year|Café & Hub|Provision|2025| |£|£|£| |Costs|(note|8)|73,414|2,925,793|2,999,207| |Grant support (note 5)|-|(225,983)|(225,983)| |Net cost|- other income|73,414|2,699,810|2,773,224| |Summary of analysis of expenditure and related|Community|Accom|Total Funds| |Income for charitable activities — Prior|year|Café & Hub|Provision|2024| |£|£|£| |Costs (note|8)|140,156|2,634,982|2,775,138| |Grant support (note 5)|-|(142,279)|(142,279)| |Net cost - other income|140,156|2,492,703|2,632,859| |10.|Analysis of|governance and support costs - Current year|

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The charity allocates its support costs as shown in the table below and then further apportions those costs to the charitable activities undertaken (see note 9). Unless stated otherwise, support costs are directly attributed to the activity.

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||||||| |---|---|---|---|---|---| |General|Total| |Support cost|Support|Governance|2025| |£|£|£| |Bank charges|1,286|-|1,286| |Wages and|salaries costs|239,429|-|239,429| |Staffing costs|12,081|-|12,081| |Premises|costs|22,802|-|22,802| |Office costs|30,611|-|30,611| |Food|costs|166|-|166| |Other costs|2,863|-|2,863| |Motor and|travel|costs|854|-|854| |Accountancy|costs|42,031|-|42,031| |Audit costs|-|8,460|8,460| |Legal costs|40,534|-|40,534| |Loan|interest|21,927|-|21,927| |Depreciation|2,431|-|2,431| |Profit/loss on|disposal|(3,824)|-|(3,824)| |413,191|8,460|421,651|

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HOMELESS ACTION

Notes to the Financial Statements For the year ended 30 May 2025

10. Analysis of governance and support costs - Prior year

The charity allocates its support costs as shown in the table below and then further apportions those costs to the charitable activities undertaken (see note 9). Unless stated otherwise, support costs are directly attributed to the activity.

General Total
Supportcost Support Governance 2024
£ £ £
Bankcharges 1,188 - 1,188
Wagesand salariescosts 224,917 : 224,917
Staffingcosts 2,590 - 2,580
Bad debt - - -
Premises costs 20,071 - 20,071
Officecosts 24,584 - 24,584
Food costs 24S - 245
Othercosts 1,571 - 1,571
Laundryandcleaningcosts 446 - 446
Motorandtravelcosts 1,607 - 1,607
Accountancycosts 38,509 - 38,509
Auditcosts - 8,053 8,053
Legal costs 51,826 - 51,826
Trustees’expenses 60 - 60
Loan interest 24,397 - 24,397
Depreciation 2,424 - 2,424
394,435 8,053 402,488

11. Trustees’ remuneration and expenses

The Trustees were not paid, and nor did they receive any other benefits from employment with the charity or its subsidiary in the year (2024: £Nil).

Expenses totalling £Nil (2024: Nil) were paid to no (2024: no) Trustees in the year to 30 May 2025 in respect of motor and travel costs.

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Notes to the Financial Statements

For the year ended 30 May 2025

12. Net income/(expenditure) income/(expenditure)

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||||||| |---|---|---|---|---|---| |12.|Net income/(expenditure) income/(expenditure)|2025|2024| |£|£| |Net income/(expenditure)|is stated|after charging:| |Management|agreements|506,252|489,636| |Service charges|-|Blackburn|hostels|-|34,390| |Auditor's remuneration-|statutory audit|8,460|8,053| |Bank interest payable|21,927|24,397| |Depreciation|71,683|55,927| |13.|Analysis of staff costs and remuneration of key management personnel!|2025|2024| |£|£| |Wages|and|salaries|1,366,940|1,235,264| |National|insurance contributions|83,065|80,158| |Employers’|pension|contributions|15,340|13,687| |Total staff costs|1,465,345|1,329,109|

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The average number of employees during the year was 27 (2024: 26) with all employees’ time involved in providing either support to the governance of the charity or support services to charitable activities. The charity considers its key management personnel comprise the Trustees and the Chief Executive Officer. The total employment benefits including employer’s pension contributions of the key management personnel was £115,472 (2024: £115,186). One employee (2024: one) had employee benefits (excluding pension contributions) in excess of £60,000. This employee received remuneration in the banding £100,000 - £110,000 (2024: £100,000 - £110,000).

During the year payments totalling £Nil (2024: £Nil) were made in respect of termination payments to employees/former employees.

14. Pension costs

The charity operates a defined contribution scheme, and contributions are charged in the statement of financial activities as they accrue. The employer’s charge for the year for the charity was £15,340 (2024: £13,687).

  1. Corporation tax

The company is a registered charity and is, therefore, exempt from taxation.

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Notes to the Financial Statements

For the year ended 30 May 2025

16. Tangiblefixedassets Freehold Plantand
Freehold [mprovements _ Fixtures, Equipment
Interest in (Previously Fittingsand including
Landand Assetsunder Office Motor
Buildings construction) Equipment Vehicles Total
£ £ £ £ £
Cost
As at30May2024 2,453,005 261,076 15,087 114,994 2,844,162
Additions 126,394 757,927 - 68,901 953,222
Transfers - - (10,709) 10,709 -
Disposals - - - (51,158) (51,158)
Asat30May2025 2,579,399 1,019,003 4,378 143,446 3,746,226
Depreciation
Asat30May2024 247,601 - 10,084 57,757 315,442
Chargefortheyear 49,482 11,323 - 10,878 71,683
Transfers - - (5,706) 5,706
Disposals - - - (49,214) (49,214)
Asat30May2025 297,083 11,323 4,378 25,127 337,911
Netbookvalue
As at30May2025 2,282,316 1,007,680 - 118,319 3,408,315
Asat30May2024 2,205,404 261,076 5,003 57,237 2,528,720

17. _ Investments held as fixed assets

The charity held one ordinary share of £1 in its wholly owned trading subsidiary company SHOP2023 CIC which was Incorporated in England and Wales. The subsidiary company was dissolved in April 2025.

18. Debtors

Debtors 2025 2024
£ £
Housing benefit receivable 136,969 188,854
Tradedebtors $2,022 49,669
Prepayments, accrued income&other
debtors 34,415 61,933
223,406 300,456

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Notes to the Financial Statements For the year ended 30 May 2025

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||||||| |---|---|---|---|---|---| |19,|Creditors: Amounts|falling due within one year|2025|2024| |£|£| |Bank|loans|and|overdrafts|18,762|16,565| |Amounts due to suppliers|38,191|42,013| |Taxation|and|national|insurance|27,281|24,991| |Other creditors|15,002|135| |Accruals|and|deferred|income|124,866|124,642| |224,102|208,346|

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Creditors: Amounts falling due within one year includes the following liabilities, on which security has been given by the charity.

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|||| |---|---|---| |2025|2024| |£|£| |Bank loans|18,762|16,565|

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The bank loans are secured by a first legal charge over 81-83 Abingdon Street, 254 Hornby Road, 39 and 45 Bairstow Street, 1 Wolverton Avenue, 176/178 Watson Road, 10 Knowle Avenue, The Warehouse back Cocker Street, 23 Cocker Street and 264-266 Dickson Road; all of which are situated in Blackpool.

There is further security provided by a fixed and floating charge over the other assets of the charity.

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||||| |---|---|---|---| |20.|Creditors: Amounts falling due after more than| |one year|2025|2024| |£|£| |Bank|loans|261,472|280,496|

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|||||| |---|---|---|---|---| |Included|in the creditors|are the following amounts due after|more than|five years:| |2025|2024| |£|£| |After more than five years|by instalments|241,343|243,099|

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HOMELESS ACTION

Notes to the Financial Statements

For the year ended 30 May 2025

21. Operating lease commitments and management agreements

As at 30 May 2025 the charity had outstanding commitments for future minimum lease payments under noncancellable operating leases and management agreements as follows:

; 2025 2024
£ £
Lessthanoneyear 460,598 506,252
Withintwotofiveyears 1,742,782 1,958,556
Overfiveyears 2,853,583 4,210,997
Total 5,056,963 6,675,805

22. Related parties

Controlling entity

The charity is controlled by the Trustees who are all directors of the company.

Related party transactions in the current year:

During the year the Charity paid motor costs totalling £3,181 (2024: £21,234) to Modern Classic Cars, an entity where Trustee Mr S Robinson is a member of key management.

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Notes to the Financial Statements For the year ended 30 May 2025

.

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||||||||| |---|---|---|---|---|---|---|---| |23.|Analysts of charitable funds| |- unrestricted|current year|At 30 May|Incoming|Resources|At 30 May| |2024|Resources|Expended|Transfers|2025| |£|£|£|£|£| |General funds|3,095,843|3,511,327|(3,029,843)|47,062|3,624,389| |Designated|Fund — Poplar|-| |House|34,893|5,670|(1,600)|38,963| |Designated|Fund — Sunderland|-| |Flats|62,001|14,894|(15,400)|61,495| |Designated|Fund — Mini bus|14,170|-|-|(5,771)|8,399| |Designated|Fund — Blackpool| |Hostels|44,150|19,989|(34,438)|5,771|35,472| |Designated|Fund — Blackpool| |Flats|37,072|14,479|(23,159)|-|28,392| |Designated|Fund — Elm|outside| |spend &|official opening costs|-|-|-|10,500|10,500| |Total|Designated|Funds|192,286|55,032|(74,597)|-|183,221| |Total funds|3,288,129|3,566,359|(3,104,440)|57,562|3,807,610| |Analysis of charitable funds|-|At 30 May| |unrestricted|prior year|2023|Incoming|Resources|At 30 May| |(restated)|Resources|Expended|Transfers|2024| |£|£|£|£|£| |General funds|2,946,359|2,795,602|(2,648,649)|2,531|3,095,843| |Designated|Fund — Poplar|-| |House|25,983|8,910|-|34,893| |Designated|Fund — Sunderland|-| |Flats|48,748|13,253|-|62,001| |Designated|Fund — 1,000 Voices|2,531|-|(2,531)|-| |Designated|Fund — Mini bus|15,000|-|(830)|-|14,170| |Designated|Fund — Blackpool| |Hostels|23,348|20,802|-|-|44,150| |Designated|Fund — Blackpool| |Flats|26,416|10,656|-|-|37,072| |Total Designated|Funds|142,026|53,621|(830)|(2,531)|192,286| |Total funds|3,088,385|2,849,223|(2,649,479)|-|3,288,129|

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Notes to the Financial Statements For the year ended 30 May 2025

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|||||||| |---|---|---|---|---|---|---| |24.|Analysis of charitable funds|-|At 31 May|incoming|Resources|At 30 May| |restricted — Current year|2024|Resources|Expended|Transfers|2025| |£|£|£|£|£| |Community Foundation|Grant|6,387|-|(2,647)|-|3,740| |Know Your Neighbourhood|Grant|16,948|75,983|(35,369)|(57,562)|-| |Garfield Weston|Grant — Derby Court|-|150,000|(1,667)|-|148,333| |Total funds|23,335|225,983|(39,683)|(57,562)|152,073|

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Name of fund

Description, nature, and purposes of the fund

Community Foundation Grant

Support through the provision of skill workshops including finances, IT, Life skills, sports and leisure, volunteering, and Job training including hairdressing and building.

Know Your Neighbourhood Grant

To offer Maths and English courses, computer skills, sports sessions and job training to isolated and vulnerable clients to help them to return to work and successfully live independently.

Garfield Weston Grant — Derby Court

To support the redevelopment of Elm House & Derby Court

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|||||||| |---|---|---|---|---|---|---| |Analysis of charitable funds -|At 31 May|Incoming|Resources|At 30 May| |restricted|- prior year|2023|Resources|Expended|Transfers|2024| |£|£|£|£|£| |Community Foundation|Grant|7,715|-|(1,328)|-|6,387| |Know Your Neighbourhood|Grant|-|139,779|(122,831)|-|16,948| |Skills|for Care — Workforce| |Development|-|1,500|(1,500)|-|-| |Total funds|7,715|141,279|(125,659)|-|23,335|

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25. Transfers

Any surplus expenditure arising on any of the restricted funds is met from general (unrestricted) funds.

Where applicable and where not prohibited under any terms specified by the donor, any restricted funds where it is deemed that the associated activity or purpose has ceased are likewise transferred to general funds at the discretion of the Trustees.

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Notes to the Financial Statements

For the year ended 30 May 2025

:

26. Netassetsbyfund -Currentyear Restricted Unrestricted TotalFunds
Funds Funds 2025
£ £ £
Tangiblefixedassets 152,073 3,256,242 3,408,315
Cashatbank and inhand - 813,536 813,536
Othernetcurrent assets/ (liabilities) - (696) (696)
Creditorsofmorethanoneyear - (261,472) (261,472)
Netassets 152,073 3,807,610 3,959,683
26. Netassetsbyfund-Prioryear Restricted Unrestricted TotalFunds
Funds Funds 2024
£ £ £
Tangiblefixed assets 23,335 2,505,385 2,528,720
Cash atbankand inhand - 971,129 971,129
Othernetcurrentassets/(liabilities) - 92,111 92,111
Creditorsofmorethanoneyear - (280,496) (280,496)
Netassets 23,335 3,288,129 3,311,464
27. Reconciliation ofnetmovement infundstonetcashflowfromoperatingactivities
2025 2024
£ £
Netmovement infunds 648,219 215,364
Add Depreciation 71,683 55,927
Deduct Interestincomeshown in investing
activities (27,035) (27,385)
Deductgrant received shown in investing
activities (150,000) -
Decrease/(increase) indebtors 77,051 108,203
(Decrease)/increase in creditors 13,559 (11,523)
Netcashgenerated in/used byoperating
activities 633,477 340,586

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Notes to the Financial Statements

For the year ended 30 May 2025

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|||||| |---|---|---|---|---| |28.|Net debt reconciliation continued|- Current year|30 May|30 May| |2024|=|Cash flows|2025| |£|£|£| |Cash|971,129|(157,593)|813,536| |Loans falling due within|one year|(16,565)|(2,197)|(18,762)| |Loans falling due|after one year|(280,496)|19,024|(261,472)| |Net debt|674,068|(140,766)|533,302| |Net debt reconciliation|- Prior year|30 May|30 May| |2023|Cash|flows|2024| |£|£|£| |Cash|754,896|216,233|971,129| |Loans falling due within one year|(15,817)|(748)|(16,565)| |Loans falling due after one year|(296,477)|15,981|(280,496)| |Net debt|442,602|231,466|674,068|

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29. Post balance sheet events

On 23” July 2025 the Trustees approved spending of up to £250,000 on a range of projects to modernise and refurbish Oak House and Holly House and to improve the energy efficiency and security at the Blackpool flats.

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