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← Lha London Ltd

2024-09-30-accounts

LHA London Ltd Annual Report & Accounts 2023-24

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www.LHALondon.com
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Contents

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3 CEO AND CHAIR’S MESSAGE

02

Chair and CEO’s Message

This year has seen a steady demand for our affordable accommodation in central London. Private rental costs are highest in areas of England where the youngest people live. Renting costs have ballooned in recent years. Rents have become so unaffordable in the capital that young private renters are now being pushed out of Central London and into areas of the East or Southeast. We have now benchmarked our weekly fees to ensure that they are affordable to young people, enabling them to live, work and study in the heart of the capital. The diverse formats of accommodation styles within the portfolio further supports easy access to single and shared spaces.

Investing in our property portfolio ensures the longevity of the stock and ensures that we maintain our high standards of accommodation. This programme saw two full external repairs and restorations and one full internal upgrade.

The volunteer scheme is a key contributor to our social impact, with over 1,200 entering the scheme this year. We pride ourselves on amazing feedback from those benefiting from the opportunity. An Equality, Diversity and Inclusion steering group was set up this year to promote and deliver EDI in the volunteering setting, the workplace and across the organisation.

Our digital transformation initiative has made progress with step changes in our resident’s automatic weekly fee payment and interactive digital reporting. During the year, we have progressed our drive to carbon neutral and plan to undertake further detailed work in the next financial year.

We aim to significantly increase the percentage of single en-suite rooms that we make available to other London partner charities by providing much needed accommodations for 18-to-25-year-olds. Not only have we been able to do this throughout the year using our LHA Rewards programme shared rooms, but we have also continued to further support affordable single accommodations through the LHA Fund with Project 25.

We thank our executive team, central support, hostel team members and volunteers for the dedication shown throughout the year. Without the amazing collaborative approach, we could not have provided the service and support to our residents. We also acknowledge the dedication of our Board of Trustees, who give their valuable time on a voluntary basis to oversee the governance of the charity.

The LHA Fund is an important part of LHA’s support for vulnerable young people. This year, the Fund provided grant aid support to AKT, Cardinal Hume Centre, Women & Girls Network, New Horizon Youth Centre and St Mary le Bow for a total of £260,540. We aim to continue to build on referrals for move-on accommodation in our single en-suite accommodations. Case studies within this report bring to life the contribution LHA is able to make to young people seeking a new start.

Tony Perkins David Conroy CEO & Company Chair of the Board Secretary of Trustees

Our strategic aim is to increase bed numbers, and this year saw the purchase of an additional hostel, providing 103 beds in the Paddington W2 area. We are also delighted that minded-to-grant planning permission has now been achieved for our proposed 62 additional single en-suite rooms at our Friendship House hostel.

I am deeply grateful for LHA’s unwavering support during my time in London. Special thanks to Laura and all Torquay’s team for being more than colleagues but true friends. Thank you for believing in me and for being such an integral part of my journey! You all will always be in my heart.

David Conroy Tony Perkins Chair of the Board of Trustees CEO & Company Secretary

LHA Services Ltd

LHA London Ltd

Registered Charity No. 169428

Company Registration No. 3424128

Company Registration No. 363816

Registered Office: 54 Eccleston Square London, SW1V 1PG

Registered Office: 54 Eccleston Square London, SW1V 1PG

Nayara–Volunteer

03

Board of Trustees and Governance

We take the governance responsibilities of the Board of Trustees seriously. We observe the Charity Commission’s governance code. Our Board comprises trustees with professional qualifications in planning, construction, project management, economics and finance, HR, social policy and law, providing a great breadth of skills at this level. Trustee training is an ongoing process: it includes external courses as appropriate for specific needs and circulation of newsletters and updates from the Charity Commission.

We enhance our Board performance by careful analysis of complementary skillsets and through an independently conducted annual self-appraisal process. While preserving continuity, diversity and experience, we seek an orderly rotation of trustees to refresh the Board skill set. LHA conducts a rigorous review should a trustee consider standing for the Board for a fourth term. Recruitment of new trustees is carried out through a bilateral approach of networking and using professional recruitment services, including agencies that specialise in finding excellent trustee-level candidates for the charitable sector.

Prior to appointment, potential trustees follow the LHA three-phase selection process, which comprises an interview with the Chairman and Chief Executive and a tour of LHA facilities, an interview by a Selection Panel of trustees and, finally, an invitation to shadow a Board meeting and be formally appointed at the appropriate Board meeting. There is a formal induction process for new trustees, which includes a trustee familiarisation pack.

The Board follows Charity Commission Governance guidelines on trustee tenure, governance training packages and onboarding. Board members complete an annual Board effective Survey and appraisal with Chair.

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Our Board of Trustees
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David Conroy
Chair of the Board
F P
A m e
Alexandra Whiston-Dew Peter Frackiewicz Petra Green
Vice Chair Trustee Trustee
F P F Po S
aD GD G l .
Sue Johnson Gareth Moody Elizabeth Nyawade
Trustee Trustee Trustee Appointed 05/12/2024
Po Po P
a G a Ga.
Adam Poole David Sawer Kam Sandhu-Shinger
Trustee Trustee Trustee
Po F S
a G r a Gt.
Simon Tarr Helen Wyeth Ali Mohammed
Trustee Trustee Trustee Retired 31/12/2023
P S F P
WD F Finance, Audit and Risk Committee G S Social Policy Committee r.
Po Property Oversight and Projects Committee P People Committee
@ @
During the year, the following co-opted committee members were appointed for a further term of two years: Mr Jeremy Estop–Property Oversight and Projects
Committee member; Mrs Lynn Vickery–Social Policy Committee member.
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Our Management Team Tony Perkins Chief Executive / Company Secretary Po F P S Marsha Gair Ben Atwell Andy Gatrell Finance Director Director of Ops & HR Director of Estates Po F P S S P Po ~~ecc~~ o ~~,~~ Our management team provides a great combination of skill sets, working hard to move the charity forward. It is important to invest in people if the business is to co | ~~e~~ | progress. The year ahead will bring new challenges, but we believe our strategy is sound.

The Board determines the policy, ensures the proper management of LHA and provides effective guidance and leadership to the Chief Executive, the executive management team and employees of LHA. The Board appoints the Chief Executive, who reports to the Board at their meetings. The Board sets senior management remuneration by reference to market benchmarking.

Trustees are, individually and collectively, responsible for the overall governance and strategic direction of the organisation. 04 ‘©

Who We Are and What We Do

At LHA London, we believe everyone should have the We also enable young people to make new opportunity to pursue their dreams. The cost of connections, learn about different cultures and create accommodation should never be a barrier for young lasting memories. people who wish to study or work, and achieving their goals should not require living in poverty. As a Our Vision charitable organisation, we offer paths to To be a leading provider in the charity sector of independence for young people by operating 14 secure, low-cost accommodations in London. properties that provide affordable student and youth accommodation in London. These include both long- Our Mission term and short-term options, all at inclusive rates. To relieve poverty by acquiring, establishing, Additionally, we create safe and relaxed, affordable maintaining and managing secure, affordable hostels and accommodation for students where accommodations for young people of limited means wellbeing is prioritised. This allows young people to working or studying in Central London. fully enjoy their lives, build new friendships and gain lifelong experiences. We also alleviate the stress of Our Charitable Object being in an unfamiliar environment, giving residents The relief of poverty by provision of acquiring, the confidence to explore London and its many establishing, maintaining, managing and conducting adventures.

being in an unfamiliar environment, giving residents The relief of poverty by provision of acquiring, the confidence to explore London and its many establishing, maintaining, managing and conducting adventures. hostels to provide low-cost living accommodations for students and working people of limited means Our History who are studying or working in the United Kingdom LHA London was initially created to provide shelter of Great Britain and Northern Ireland and to further for those made homeless by the Blitz, offering highany charitable purpose recognised by English Law by quality accommodation since 1940. On the 5 the provision of housing. November 1940, the Government set up the London Hostels Association Ltd (LHA) and appointed a 'Council of Management' to manage and provide Five-Year Plan Targets 2027–28 hostels for the homeless. The Council sought The illustration below shows each of the Performance Indicators (KPIs) and the targets set for buildings capable of housing about 50 people each, what we want to achieve by 2027–2028. requiring basements or other spaces that could serve as bomb shelters-which posed challenges amid Maximising our Empowering our people and nightly bombing raids. Despite these hardships, Mrs Social Impact teams Churchill opened the first hostel in January 1941, a Social impact score Employee engagement score mere 10 weeks after the company's formation. 85 *** Accommodations cost £1 per week, plus an additional 82 *** Under 30s shilling for Saturday and Sunday meals.

The illustration below shows each of the Key Performance Indicators (KPIs) and the targets set for what we want to achieve by 2027–2028.

Maximising our Empowering our people and Social Impact teams Social impact score Employee engagement score 85 * 82 *** Under 30s 75% Volunteer engagement score 85 ***

By the end of 1942, there were 33 hostels accommodating around 700 people, many of whom had been brought to London for war-related job roles. By the 1950s, the number of hostels decreased, with most residents being young people recruited from the provinces for government jobs. This remained the case until the 1970s, by which time there were 17 hostels. Today, LHA is a charity guided by a voluntary Board of Trustees. We now operate 13 large hostels, catering to all young people in need of affordable accommodations while they work or study in one of the world's greatest cities.

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Building a sustainable future
£ Income budget
Taking pride in every hostel
£21.5M
Compliance
Carbon target
95%
Carbon neutral
Net Promoter Score
Additional beds
50
425
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*Likert scale is a rating scale used to measure participants, opinions, attitudes and motivations.

As a charity and one of the capital's leading affordable accommodation providers, we run 13 properties in the heart of one of the world’s most diverse and energetic cities, providing a central and safe base for young people to live their London life – whether that’s for work, study or adventure.

Aims and Objectives

Strategic Planning

KPI Targets for 2024–25

2023–24 was the second year of the five-year plan agreed in 2022–23, wherein, as part of LHA’s strategic planning process and due to significant changes in external factors, including the cost-ofliving crisis’ in a post-COVID, post-Brexit London, LHA took the opportunity to revisit and adjust its existing Strategic Plan and targets whilst also amalgamating the eight pillars of LHA’s Sustainability Strategy into the overall plan. Throughout this report, you will see our tracked progress compared to our plan for this year and our KPI targets for 2024–25.

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Maximising our Empowering our people and
social impact teams
Social impact score
Employee engagement score
75
80
Under 30's
63% Volunteer engagement score
90
Building a sustainable future
£ Income budget
Taking pride in every hostel
£18.8M
Compliance
Carbon target
92%
Carbon neutral
Net Promoter Score
Additional beds
45
140
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Strategic Aim

Over the next five years, we are aiming to grow our charity in size, shape and impact to achieve our long-term goals of delivering affordable, sustainable, high-quality accommodation.

Strategic Themes

We will achieve this aim with the help of our four strategic themes:

  1. Maximising our social impact

  2. Empowering our people and teams

  3. Taking pride in every hostel

  4. Building a sustainable future

Tracking Our Progress

The Trustees and EMT have aligned nine KPIs as part of a balanced scorecard to measure progress against our strategic goals and ensure we stay on track with delivering our plans.

Living in an LHA property has been a positive experience overall. Like any long-term stay, there have been occasional ups and downs, but these moments are few and far between. What stands out the most to me is the consistency in the quality of service and care. Anonymous Resident

05

Highlights of the year

KPI Achievements for 2023–24

Empowering our people and teams

Maximising our social impact

Social impact score

Employee

74* (+1)

engagement score 80* (+3)

Under 30's

57% (+5%)

Volunteer

LHA Paddington

One of the biggest highlights of the year was the acquisition of the new site. LHA acquired the neighbouring property to our Railton House site in April 2024. Previously a 63-room hotel with all ensuite rooms, following reconfiguration works , LHA Paddington opened as a 103 bed catered hostel on the 1 July 2024. The new site is managed and operated along with our Railton House site by the House Manager.

The new site has proven to be extremely popular ; following a phased opening, we achieved 100% occupancy within eight weeks.

Nearly all of our new residents are aged under 30, with the combined (Railton House and Paddington) % of under-30-year-olds sitting at 80% of residents. Resident feedback has been hugely positive, with an NPS of over 50 and a booking.com rating of 8.0.

engagement score 90* (+1)

Building a sustainable future

£ Income

£17.1M

Carbon target

621.05 tonnes

Additional beds

104 Total beds 2,048

Taking pride in every hostel Compliance

91% (+1%)

Net Promoter Score 40 (+6)

We’d like to compliment all the staff and volunteers for their dedication and hard work in ensuring the smooth functioning of LHA Paddington.

Their commitment to the charitable values of LHA Paddington has provided our son with a safe home away from home in a lovely community. Anonymous Resident

06

*Likert scale is a rating scale used to measure participants opinions attitudes and motivations.

Social Impact Highlights

The reach of the LHA volunteer scheme is growing across the globe. In 2023-24, There were over a thousand volunteers in our scheme, with 261 from Brazil, 77 from Colombia and 105 from India, to name but a few.

53%

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27%
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57%

of residents are in of residents are in of residents are full or part time full or part time under 30. work. study. 57% 81% 94%

of young people of residents feel of residents and benefitting from more confident volunteers feel LHA Rewards felt about their that in London they couldn’t have financial situation they are accepted afforded to stay in now than before for who they are. London without they stayed with LHA. LHA. SY 97.9% is the average Occupancy. ]|_D> 70% of residents earn London Living Wage or below. 55% of residents feel they were at risk of homelessness if they had not been able to stay with LHA.

83%

90 16,168 £276,810 volunteer unique enquiries given out in engagement for grants as part of of young residents (under 30 y/o) score accommodation the LHA Fund agreed that their stay with LHA helped them to gain independence. 76% of residents indicate that they have made friends with other LHA I’ve gained a lot of independence, made amazing friends, and shown my residents. 73% leadership skills. I also discovered how good I am at teamwork, problem solving, and helping others. of residents think that they would not have been able to afford to stay Anonymous Volunteer in central London if they had not 07 stayed with LHA. ~~Sd~~ >

of young residents (under 30 y/o) agreed that their stay with LHA helped them to gain independence.

73%

Our Social Impact

Maximising Our Social Impact

Accommodations that young people can afford make central London more accessible to all young people, sustains diverse communities and enables sustainable livelihoods.

Our Outcomes

Through our places, programmes and activities, we create environments where people gain new experiences, foster friendships with one another, improve their wellbeing and develop a sense of belonging.

We surveyed all of our current and alumni residents and volunteers who benefited from our services between October 2023 and September 2024 to understand their experiences. Once again, it was a hugely rewarding experience, which is reflected in some of the comments you will find throughout this report.

As a charity, we are determined to be a driver of social benefit by providing young people with affordable, safe and secure accommodations in London.

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Our overall ambition is to ensure we generate positive social impact through all our places, programmes and
In terms of the quantitative information received, we saw an overall score increase from 73 in 2023 to 75 in
activities. At the same time, we also want to champion the greater social impact we have achieved through some
2024 and overall saw positive improvements across all of the indices measured, bar one.
of our more focused programmes and activities, which are defined in our impact grid below.
LHA Fund Notably, the number of respondents who believed they could not have been able to stay in central London
Giving grants to without LHA was 73%, whilst the number of respondents who believed they were at risk of homelessness
small charities to without LHA was 58%.
Collaborations support them Rewards
with projects Our loyalty
Working with aimed at young scheme that During the year, we actively focused on fostering friendships by hosting of hostel events and improving our
employers and
educators to experiencingpeople people to receiveallows young social spaces; whilst this remains the lowest-scoring area, it is also notably the most improved score. We will
provide access to continue to explore more ways to help foster friendships within our buildings in the year ahead.
homelessness up to 15% discount
accommodations
on their
in London
accommodation
As was the case in previous years, further analysis of scores for young people in receipt of LHA Rewards and
Repurposing Volunteers responses from volunteers highlight that it is through these activities that we have the greatest social impact
ets
Working with Supporting and deliver the strongest outcomes.
other like-minded young people
charities to utilise who work and
our buildings and volunteer with
expertise to have us in achieving
a shared social sustainable 78 67
impact. livelihoods gain experience residents foster
Our Impact living in a friendships with
global city each other
Project 25 Staying at LHA The Measurement
Working closely The social In this year’s report, we wanted to
with New Horizon impact we have
Youth Centre to with every look more closely at the overall Outcomes
provide move-on person who sentiment of people’s responses to
accommodations stays with us our social impact survey. To support
for young people each year
our future activities, we wanted to
under the age of
25 better understand where our
Overall score
75 77
opportunities are to grow and
LHA Fund improved have a sense of
improve our social impact. In this
wellbeing belonging
People: Year 1 report, we have included the residentsamong among residentsto London 74
funding review
Collaborations April 2025 Rewards percentage of positive responses to
questions (for comparison to last
People: 961 Projects: 5 People: 1,513 year) and have also applied the
Impacts
Overnights: 294,581 Overnights: 230,066 Likert scale to responses to gain a
better understanding of how
respondents feel overall.
Repurposing Volunteers We have used the following 82 77
summary table to interpret the enabled sustaining mixed,
People: 205 People: 1,233 scores: sustained livelihood diverse
for youths, homeless communities in
Overnights: 5,840 Overnights: 70,080 people and other London
67–100 Strive and Celebrate groups living in
London
we Our Year at a 51–66 Monitor to Further Improve
Glance
Project 25 Staying at LHA 34–50 Improve to Monitor
People: 3 People: 8,529
0–33 Focus to Improve
Overnights: 177 Overnights: 675,080 08
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In terms of the quantitative information received, we saw an overall score increase from 73 in 2023 to 75 in 2024 and overall saw positive improvements across all of the indices measured, bar one.

Notably, the number of respondents who believed they could not have been able to stay in central London without LHA was 73%, whilst the number of respondents who believed they were at risk of homelessness without LHA was 58%.

During the year, we actively focused on fostering friendships by hosting of hostel events and improving our social spaces; whilst this remains the lowest-scoring area, it is also notably the most improved score. We will continue to explore more ways to help foster friendships within our buildings in the year ahead.

As was the case in previous years, further analysis of scores for young people in receipt of LHA Rewards and responses from volunteers highlight that it is through these activities that we have the greatest social impact and deliver the strongest outcomes.

Maximising our social impact Social impact score As part of our refreshed approach to Project 25 we The LHA Fund agreed on a working arrangement with two existing LHA 2024 saw a marked change in the LHA fund strategy, 73 fund grantees, New Horizons Youth Centre, and St Mary with the aim of providing larger, multi-year grants to a Le Bow. The objective was to initially offer 10 en-suite smaller number of organisations. Building on successful rooms at our Torquay House site. LHA also covers the funding relationships developed over several previous cost of two rooms that NHYC currently rents from St years, we invited applications from organisations for a Under 30s Mary Le Bow for the same purpose. As part of the grant of up to £70k per annum for a period of three arrangement, NHYC provides wrap-around support to all years. The criteria for grant awards were refocused on of the young people benefiting from the project. established charities working with young people with 57% (+5%) housing needs in London. We welcomed the first young person to Torquay House in April 2024, and by the end of September 2024, three Following the application process, we were delighted to young people were living at Torquay House as part of the be able to award grants to: ~~“_~~ program. (You can read a case study from one of the beneficiaries on page 11.) 1. Albert Kenedy Trust www.akt.org.uk Whilst it is still early days, we recognise the unique opportunity we have to grow the scheme and support AKT is a charity with a strong track record in addressing even more young people, as such, following a review of the specific needs of young LGBTQ+ people with LHA’s strategic plan, we have made a commitment to housing difficulties. The grant award will be used to rename the programme ‘Project 150’, and, in recognition, support their caseworker team.

Social Impact: A Fresh Approach

Project 25 and the LHA Fund

Following the extensive review of the LHA fund carried out last year, 2024 was the first year of our revised approach. There were two significant changes to the way we allocate funds to grow our social impact.

Project 25

For some time, we’ve been aware of the particular challenges faced by young people (under the age of 35) experiencing single-person homelessness–both through the limitations imposed on them due to the benefits cap and the maximum housing allowance they are able to claim and the severe lack of move-on accommodation once individuals complete a period in supported accommodation and are ready for independent living.

Project 25 sees LHA provide a ring-fenced fund (£100,000 in 2024) for us to provide subsidised accommodation in our hostels. Utilising the fund means we are able to offer accommodation at Local Housing Allowance; rates to young people for up to a year’s transitionary support into long-term, private sector housing.

Whilst it is still early days, we recognise the unique opportunity we have to grow the scheme and support even more young people, as such, following a review of LHA’s strategic plan, we have made a commitment to rename the programme ‘Project 150’, and, in recognition, the LHA fund will further increase its social impact from the financial year 2027–28 with up to £1m of annual weekly fee support for vulnerable young people referred by suitable London charities’.

  1. Cardinal Hume Centre www.cardinalhumecentre.org.uk

Cardinal Hume Centre is a charity with a strong track record in working with young people whose complex needs mean they require long-term targeted support to move towards independent living. The grant award will be used to contribute to the wrap-around support they provide at their centre. 3. Women & Girls Network www.wgn.org.uk Women & Girls Network is a charity that provides ~~a~~

Women & Girls Network is a charity that provides targeted, specialist support to young women whilst working at a more systematic level to influence change beyond their immediate support offer. The grant award will be used to employ a specialist ‘Housing Champion’ within their advocacy and advice service as well as to provide small financial contributions to support individual young women with expenses related to setting up a new home.

Overall great value for money. It's easy and effortless to live here, taking a lot of stress off. Communication from the team is fantastic. Very quiet and peaceful. Anonymous Resident

At the time of writing, a full year of funding has not yet been completed; however, you can see case studies from each of the LHA fund charities on pages 10 and 11.

09 OC

LHA Fund

LHA is a long-term funder of AKT. The new funding format provides AKT with £70,000 per annum over three years to support two caseworkers in London.

Cardinal Hume Centre works with homeless young people in Westminster to break the cycle of poverty and support the transition to longterm, independent living. The young people they work with have lived experiences that have led them to need extra support and care to be ready to move on. Their hostel is home to 44 homeless young people aged 16–25.

Madani’s story

Madani has been living in our supported accommodation for a year, having arrived in the UK as a political refugee.

'My name is Madani. I am 21 years old and I have been living at the Cardinal Hume Centre for just over a year. I am originally from Chad, but when I was 14, I had to leave the country due to political issues. It was not safe for me to stay there, so I had to flee and try to find a better life.

I arrived in England when I was 17 and did not know anyone or how to speak the language. I found it really hard to communicate with anyone and could not explain my situation to anyone. I was alone. I was put into a hostel by the council, but when I turned 18, I was too old to stay there, so they needed to find somewhere else for me to live.

I was told about the Centre by my social worker, who helped me to get a place here. When I arrived, I felt like I was safe – I was really happy. I really like the diversity here. It is good to meet new people, speak with people from around the world and keep practising my English.

Since living here, I have been helped by Carla in the Employment and Learning team to look for work. I really wanted to get a job, but I needed help to write my application and practice for interview questions. She helped me in every way she could to make sure that I was ready. I went to sessions for interview techniques, and this was so helpful.

She also gave me a voucher so that I could buy myself a suit that I could wear to the interview. I felt really smart and confident wearing it, and when I turned up for my interview, they said I looked professional and ready for the job; that felt really good to hear.

I was really nervous to do the interview because it was the first one in my life and I was anxious about speaking English, but it went really well , and I got the job! Because of this, I also feel confident that, in the future, when I look for any other jobs, I will be more prepared and less nervous.

I have done my training, and now I am ready to start the role. I am looking forward to being able to meet new people and speak in English with the customers. It is really good for me.

I am hopeful for the future. I want to keep practising my English, get my own flat and do things such as work, pay my taxes and bills. I want to feel like I am a part of real life. Step by step, things are getting better, and my life has changed so much. For anyone that is struggling like I was, I would say to them to just keep going, keep trying. Nothing is impossible, and everyone has dreams that they deserve to achieve. That is how I feel now.'

London is the busiest area for casework and live chat, accounting for 45% of all referrals. Of these referrals, 37% involve live chat.

Key Challenges in London:

High number of rough sleepers: 11% of cases (87% had experienced rough sleeping)

Disproportionate impact on BBPOC: 71% of all cases in London High levels of refugees and asylum seekers: 13% of all cases

Outcomes:

Number of young people supported into safe and sustainable accommodation

Number of LGBTQ+ young people experiencing improved mental health and self-worth

Number of young people with improved access to education, employment or training

Current London Snapshot:

98 actions on education and employment

227 actions on health, disability and neurodivergence

34 emergency cases

24 long-term cases

Examples of Support:

Emergency packs: Covering essentials such as electricity, gas, travel, food and shelter

Rainbow packs: Providing financial help with deposits, home items and moving costs

Case Study:

B contacted AKT in mid-December 2023 after being evicted from her home office accommodation due to her accepted asylum claim. AKT provided emergency accommodation and supermarket vouchers and advocated for temporary accommodation through the local authority. AKT is working towards securing long-term, LGBTQ+-supported accommodation for B.

Quote from B:

'AKT has been my guiding light through the darkest of times. From securing shelter to providing sustenance, they stood by me every step, offering not just accommodation and food but unwavering support and compassion. Their dedication to helping homeless LGBTQ+ individuals like myself is a testament to their remarkable ethos and the profound impact of their work. I am forever grateful for their kindness and unwavering commitment to ensuring that no one is left behind.'

10

LHA Fund

Women & Girls Network UK is a free service that supports women and girls in London who have been affected by all forms of violence and abuse. They provide a range of services, including advice and information, advocacy, practical support, casework, and specialised support for young women. Their goal is to empower survivors and help them heal and rebuild their lives.

The rising cost of living presents significant challenges for survivors of domestic abuse, particularly in accessing essential services. Key issues include:

Transportation: Survivors often struggle to afford transportation to support services, limiting their engagement. The service has explored partnerships with TfL and a social media campaign to provide preloaded Oyster cards to clients.

Housing: The housing crisis exacerbates challenges for survivors seeking safe housing. Demand for refuge spaces has increased, and temporary accommodation options are often insufficient. Administrative hurdles, such as excessive documentation, can delay access to housing.

Housing Support: Not all housing associations have clear policies regarding domestic abuse or participate in housing reciprocal agreements. Caseworkers have actively engaged with housing providers to advocate for survivors and expedite housing processes.

Despite these challenges, the team's dedication has resulted in positive outcomes, including securing refuge placements and supported accommodations for clients.

Client A: Case Study

Client A was a survivor of rape, sexual violence, and domestic abuse and was at risk of cuckooing and exploitation. She was an incredibly vulnerable adult who was at risk of exploitation from multiple perpetrators in her life and experienced disassociation that caused her to not see dangers or red flags from a network of men in her life.

She had a history of domestic and sexual violence from multiple perpetrators and struggled to live alone or protect herself from harm or exploitation due to the impact of a long history of trauma in her life.

Client A was Black British, heterosexual, 20 and diagnosed with complex PTSD, depression and anxiety and experienced low mood, recurrent self-harm and suicidal ideation.

The caseworker completed advocacy work when client A was facing eviction from her temporary accommodation; advocated with mental health services to ensure she kept the support of a care coordinator after her move to accommodation to ensure her mental health was being overseen; represented her at a Multi-Agency Risk Assessment Conference; they attended strategy meetings and advocated with children services to ensure they understood the impact the dad’s continued controlling behaviour had on client A; completed three safeguarding referrals based on internal risk disclosures; completed grant applications and secured for the client a new bed after she moved into new accommodation with no furniture; and delivered sessions on safety planning, emotional support and violence against women and girls awareness raising. Other agencies involved were client A’s mental health care coordinator, her child’s social worker, Abianda (caseworker overseeing risk of cuckooing and exploitation) and her GP.

Client A displayed a marked improvement in understanding her experiences of VAWG and was able to recognise red flags in certain friendships and romantic relationships that were present in her life. She was able to stand up for herself in professional child-in-need meetings and express her need to have contact with her son. Client A said she regularly looked at resources provided by the caseworker, used the journal provided to keep track of notes/actions and was able to enact her boundaries in situations that made her feel uncomfortable, unsafe or upset.

Project 25

Project 25 is a significant opportunity for young people who Mitigated deposit and reduced rent also reduce the need both affordable housing and a solid support system as immediate pressure to meet high housing costs, giving a stepping stone towards full independence. For many them space to develop their skills, confidence, and longyoung people, finding a place to live that is both affordable term plans. In essence, reduced rent not only ensures | ! and supportive can be a significant barrier, especially when housing is accessible and sustainable in the short term but transitioning from homelessness, hostel environments or also plays a critical role in enabling young people to work unstable housing situations. towards lasting independence.

Project 25 provides young people with a valuable chance to Camran’s story transition into independent living while having access to Camran’s story underscores the vital role that programmes affordable housing and ongoing support. With reduced rent such as Project 25 play in addressing youth homelessness and floating support, it helps residents manage the and providing pathways to stability. Camran experienced responsibilities of independent living while still receiving homelessness after a family breakdown – which is a stark guidance and resources to support their journey to reality for many young people, leaving them in a vulnerable independence. position during a formative and critical stage of life.

Floating support can be scaled up or down depending on Camran had an unsettled childhood, spending time in care each person’s progress, which allows young people to build until he moved in with his grandmother; however, her essential skills such as managing finances, finding passing marked a significant loss and a turning point in his employment or developing their life skills at a pace suited to life. Following this, Camran’s father took custody, as his their unique needs and goals. This flexibility is particularly mother struggled with substance addiction, but despite his empowering for young people, as it fosters both confidence father’s efforts, housing could not be sustained, leaving and self-reliance without the immediate full weight of Camran in a precarious situation and resulting in the family independent living. As they progress, residents can become breakdown. more self-sufficient while knowing that support is readily available when needed. Family breakdowns disrupt not only housing but also emotional and financial stability, often creating a cycle of Reduced rent is another crucial aspect of this model, as it uncertainty and hardship. Camran continues to struggle provides young people with the chance to access and with PTSD, but he manages this extremely well with support sustain housing while also creating an opportunity to save from specialist, wrap-around services.

Reduced rent is another crucial aspect of this model, as it provides young people with the chance to access and sustain housing while also creating an opportunity to save for their future independence. By lowering the financial

burden of rent, residents can focus on building stability in When Camran was first assessed and accessed Project 25, he other areas of their lives, such as employment, education or was in full-time employment; however, he unfortunately lost training. This affordability also allows them to allocate funds this job quickly after moving in, and his floating support towards essentials such as savings, which can later support worker stepped in to help. Camran was able to secure a new deposits towards PRS. role extremely quickly and was provided with assistance for his first month’s rent in advance, which ensured his housing remained stable while he navigated the uncertainty of changing jobs. This support not only alleviated immediate financial pressures but also gave him the breathing space needed to focus on securing and settling into his new role.

St St Mary le Bow’s primary focus is on supporting young homeless people by providing safe accommodations Mary in flats and offering support services to help them transition into independent living and secure employment. le Bow 'St Mary le Bow has been receiving generous support from the LHA for many years. This funding has been instrumental in providing housing for young homeless individuals in flats acquired from the Peabody Trust. The charity assists young people in various ways, including job preparation, life skills training and financial management. One of our notable initiatives is an apprenticeship programme with Pret a Manger, which offers young people the opportunity to gain valuable work experience and potentially secure permanent employment. The LHA's recent grant covers rent expenses, which has significantly alleviated the financial burden on the charity, enabling them to focus on providing essential support services to the young people they serve. St Mary le 11 Bow expresses gratitude for the LHA's ongoing support and encouragement.' ~~a~~ .

St Mary le Bow’s primary focus is on supporting young homeless people by providing safe accommodations in flats and offering support services to help them transition into independent living and secure employment. 'St Mary le Bow has been receiving generous support from the LHA for many years. This funding has been instrumental in providing housing for young homeless individuals in flats acquired from the Peabody Trust. The charity assists young people in various ways, including job preparation, life skills training and financial management.

Valuing our Employees

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----- Start of picture text -----
LHA People Values
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In 2023, we were over the moon to achieve an employee engagement score of 77, which exceeded both targets and expectations. We are blown away to be able to report that in 2024, our engagement score further improved, with a score of 80 achieved. Key areas of focus during the year included:

We know it’s a cliché, but our teams really are our greatest asset, and without them, we wouldn’t be able to deliver the amazing social impact that we do; the continued improvement in employee engagement in the context of still believing there is more we can do gives us huge confidence in the path we are on.

Our Executive Management teams consist of the CEO, the Finance Director, the Director of Estates and the Director of Operations and HR. They bring a wealth of experience and knowledge to their roles. They live and breathe our values and support the charity, their teams and everyone at LHA.

Our people values are at the heart of everything we do and critical to the continued growth and success of LHA.

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----- Start of picture text -----
A charity dedicated to providing
everything we do and critical to the
affordable accommodation for
continued growth and success of LHA.
students and young workers in
London. We are making a
Empowering our tremendous difference in the
lives of many. Our mission is
both admirable and essential,
people and teams
and it’s thanks to the dedication
Employee engagement score and hard work of our teams that
We encourage ourselves and
we can continue delivering on
those around us to overcome
this mission.
80 challenges.
Passionate
We are passionate about
delivering an exceptional
2024 2023 resident experience.
What our employees
think about working for
80 Overall 77 LHA Professional
Engagement
We take ownership when we
78 Leadership 78 should.
86 My Team 87
We act with integrity in
LHA is extremely
76 Enablement 78 supportive, and working everything we do.
here is a learning
80 Alignment 78 experience. The Open and Honest
volunteer scheme has
We are open to all and believe
so much to offer.
78 Development 80 everyone should be able to
express their views.
Reward and
74 72
Recognition Knowledgeable
We take pride in our expertise.
We are an inclusive
and fair organisation.
A nice working
environment
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12

Valuing Our Volunteers

Volunteering at LHA London is not only an important part of us keeping the cost of accommodations affordable but also a huge part of our social impact.

During the year, 1,233 individuals donated over 198,000 hours of their time to LHA, and during the year, close to 70,800 overnight stays were recorded.

The volunteer scheme offers opportunities to people from around the globe; individuals from 72 different nationalities participated in the scheme during the year. Volunteers stay with us for between 30 days and two years.

We are delighted to report the volunteer engagement score has risen from 89 in 2023 to 90 in 2024.

This was a direct result of the additional focus placed on supporting hostel teams and volunteers through the volunteer lead role, alongside the ongoing streamlining of processes and procedures utilising our CRM. Additionally, we made improvements to volunteer recognition.

As part of our annual Social Impact Survey, we asked all volunteers the same questions as we did our residents, and across all indices, a greater level of social impact was noted, re-enforcing the importance of the volunteer scheme to us meeting our charitable objectives.

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2023–24 Outcomes
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Volunteer

engagement score

91 (+2)

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----- Start of picture text -----
Experience living in
78 84
a global city
75 Improved wellbeing 84
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67 Fostering 78
friendships
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76 85
to London
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able to gain experience and develop skills Sustaining mixed,
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87
through the scheme; 92% of participants feel communities in
that the volunteering experience has been London
valuable to their professional development, 77
Enabling sustainable
and 100% of participants feel they have livelihood for youths,
improved on skills and expertise in homeless people and 84
other groups living in
hospitality as a result of their volunteering London
experience. 82
We asked volunteers specially about which
other skills they felt had improved as a result
of their participation; positive improvements
were recorded across all of the categories. Enabling sustainable livelihood for youths,
2023–24 Outcomes homeless people and other groups living in London
VOLUNTEERSONLY ALL oooo VOLUNTEERS
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English language 77
Time management 77 % that feel that they
skills would not have been able
77% to come to stay in central 76%
Communication 85 London if they had not
skills en | been able to stay with
LHA
Attention to detail 81 % that feel they would be
65% at risk of homelessness if 61%
they were not able to stay
Team work 83 with LHA
—-
Knowledge of 86
13
hospitality ee |
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Building a Sustainable Future

This year, LHA has continued its asset investment programme by improving its existing buildings whilst at the same time expanding its portfolio.

This aligns with LHA’s mission to expand its offering for students and working people of limited means and with the objective to increase the bedspace provision by 425 by 2028. The new accommodation offers ensuite rooms and communal facilities inside and externally and provides a fully catered service to all guests.

The new site at Paddington provides excellent private and communal space where guests can study and make new connections and provides a centrally located base for young people to live their lives in the capital. These new beds are subject to LHA’s loyalty scheme that allows young people to receive an up to 15% discount on their accommodation – making it even more affordable – and LHA further supports young people at the building through its volunteering scheme.

This expansion of the portfolio has been coupled with an extensive internal refurbishment of the existing Railton House accommodation, which has seen all bedrooms being totally refreshed – including new furniture and flooring, new washing facilities and the refurbishment of the communal areas and kitchens to ensure that our guests have the very best experience during their stay.

In addition to this, Railton will be the subject of an external decorations programme in this coming year, meaning that the building will have been refreshed both internally and externally over an 18-month period.

This year has also seen success in other ways, with LHA securing planning permission for the expansion of its Friendship House Hostel in Southwark. This project– which is being undertaken in partnership with Apex Airspace and designed by Todd Architects – will utilise modern methods of construction to expand the hostel upwards by building a rooftop extension. The new extension will provide an additional 62 en-suite bedrooms, shared kitchens and communal space with the creation of an internal 'Sky Room' on the sixth floor.

This lounge space, which will be connected to one of the new kitchens and benefit from great views over the rooftops towards the city and to the Shard, will be additional to the outside space, large study area and gymnasium, which are already in situ on the ground floor of the building.

The new element will retain the original building’s architectural language, forming a singular building (rather than separating new from old), retaining the dynamism of the original award-winning design and melding seamlessly with the original. The use of modular construction has various benefits, minimising the disruption for LHA’s existing guests and its neighbours. It will also allow a greater degree of quality control during the construction and remove a great deal of the noisy and disruptive work from site. The project will commence this financial year and complete in 2026.

These planned and completed additions to our existing bedspace provision total almost 200 and contribute to LHA’s objective of 425 additional beds by 2028. In addition to this, LHA continues to look for new opportunities to expand its portfolios through acquisitions, partnership and new-build opportunities. As well as improving LHA’s social impact and meeting its charitable objectives through the provision of additional bedspaces for its charitable cohort, these new beds also create additional income for the charity.

Every penny of surplus LHA makes is used to support broader objectives, including the LHA fund, which provides significant grant funding to small charities with similar objectives, and contributes funding for the improvement of the existing portfolio and its growth through new acquisitions.

The external works programme this year encompassed external refurbishment of four buildings: Newington Court, Belvedere Annex, Belsize House and its Annex building.

These external improvements encompassed cleaning, repairs, and redecorations of all four buildings, ensuring our assets remain clean and well maintained and that our residents feel a sense of belonging and attachment to their residences. They also make certain that our buildings continue to have a positive impact on the local areas in which they are situated. LHA continues to target external redecoration for its buildings every seven years to ensure that they maintain their condition and appearance and make a positive impact on local neighbourhoods.

Building a sustainable future

£ Income

£17.1 M

Carbon footprint 825 tonnes

Additional beds

104 Total beds: 2,048

I believe I’m a really easy-going person, so for me, everything was perfect. The volunteers’ accommodation is the best, and the allowance for food is perfect. I would say to come with mind and heart open to have a full experience not only in the job but also with the other volunteers. I really enjoyed my time here and definitely would come back if possible. Franco and Jorge, they are the kindest people that Davies could have; thank you so much for everything.

Ana – Volunteer

14

Sustainability Strategy

Sustainability is one of LHA’s key focuses, particularly in regard to its property portfolio. LHA is very aware of the government’s target to achieve carbon neutrality by 2050 and is working with Carbon Neutral Britain to define its carbon footprint and achieve carbon neutrality and set its reduction targets. The reductions will initially be through a series of measures comprising the use of carbon credits to offset its current carbon impact whilst making physical and operational interventions to reduce that footprint and the use of credits over time.

In terms of LHA’s asset base, the actions taken over the last few years mean that none of the existing hostels has an EPC rating lower than C. More positively, 68% of our hostels achieve a B rating. This has been achieved through environmentally conscious investments in M&E and targeted interventions such as operational measures to improve how the buildings are run and managed and the installation of energy efficient lighting, aerated showers and taps and draft-proofing.

Over the last year, LHA has gained a clear picture of the performance of its stock, which allows it to plan and target interventions. LHA shall concentrate on improving the performance of those buildings that perform the least well, as well as completing any 'easy wins' in all building, that may not yet have been undertaken. This year, LHA will complete its assessment of how, where and over what period its environmental asset improvements can be made. In anticipation of this programme coming forward and to enable it to happen, a significant allowance in the five-year plan to fund the measures deemed necessary has been made.

When major refurbishments are required over the medium to long term, a fabric-first approach – combined with M&E interventions – will be taken to ensure LHA is improving the energy performance of its building and hence reducing its energy usage overall, which is the best way to reduce the carbon footprint of the buildings.

Moreover, when planning existing capital works, energy efficiency is always a key consideration for LHA when agreeing on any measures taken. In the coming financial year, for example, LHA has a series of mechanical and electrical works in its capital programme and is working with advisors to ensure the solutions are sustainable. This will encompass the installation of pressure-controlled variable-speed ventilation at one of its buildings, which uses far less energy than fixed-speed extraction. The installation of hydrogen-ready boilers or other more sustainable alternatives to existing gas boilers will also be part of that M&E programme. Further to this, the rooftop extension planned at Friendship House will have a variety of environmentally sustainable features incorporated into it. These include the provision of a green wall at the ground floor, an expansion of the bicycling storage space for both new and existing residents and a green roof and photovoltaic panels to further improve the sustainability of the building.

Taking Pride in Every Hostel

Taking pride in every hostel Compliance 91% (+1%)

We have focused and will continue to focus on meeting and exceeding the needs and expectations of our residents.

2024 saw us achieve our highest-ever NPS score of 40, an increase from 34 in 2023 and 29 in 2022. This was achieved through a combination of property improvements and investment as well as working closely with our teams to provide more real-time insight into satisfaction levels to allow them to focus on consistency and the small things that make a big difference. We’re acutely aware that we still have lots of areas where we can further improve and so remain confident we can continue to drive this to sector-leading levels.

Net promoter score 40 (+6)

A key highlight of the year was the expansion of Railton House with the acquisition of our Paddington site. This expansion of the portfolio has been coupled with an extensive internal refurbishment of the existing Railton House accommodation, which has seen all bedrooms being totally refreshed – including new furniture and flooring, new washing facilities and the refurbishment of the communal areas and kitchens to ensure that our guests have the very best experience during their stay.

Our work to boost the potential of the existing portfolio continues. In the 2024–25 financial year, the capital works programme includes improvement works to our Belvedere House hostel. The works will provide upgraded shared kitchen facilities and redecoration and improvements to rooms. This follows the extensive works to the external decorations and complete refresh of the shower and toilet facilities completed in the current financial year.

I would like to express my deepest gratitude for the warm recognition and kind words I received. It is a privilege and a joy to contribute my time and skills to such a dedicated and inspiring organisation as LHA.

I am truly honoured by the LHA Special Thank You Badge and very grateful for the gesture of recognition. This kind of appreciation strengthens my commitment and enthusiasm to continue giving my best in every opportunity.

Paulo – Volunteer

15

Our Equality, Diversity Exploring Resident and Inclusion Statement Diversity at LHA Gender LHA London Ltd. is committed to creating a We will continue to support our board and welcoming and inclusive environment for all committee members, leaders, managers and residents, staff and stakeholders. We recognise that employees to demonstrate the principles of equality, diversity is one of our greatest strengths, and we diversity and inclusion in their everyday activities, Marital Status strive to ensure that everyone feels valued, respected roles and functions. and supported, regardless of their background or 9% 1% 51% 47% 2% identity. During 2024, we further developed our EDI strategy, Male Female Prefer not 1% which is built on the principles of fairness, respect to say Equality, diversity and inclusion are at the very heart and opportunity. It is designed to promote equality, 5% Religion of what we do and central to the social impact that celebrate diversity and foster an inclusive culture we deliver and the outcomes we strive to achieve. where everyone can thrive. This strategy outlines our Our Social Impact – 'Accommodation young people commitments, objectives and actions to embed EDIin all aspects of our organisation. 9 can afford makes central London more accessible to 9 2 84% all young people, sustains diverse communities and We established an EDI steering group made up of enables sustainable livelihoods.' trustees, members of the executive team and senior managers as well as developing our employee forum 1 Our Outcomes – 'Through our places, programmes made up of a diverse group of employees from all and activities, we create environments where people levels of the charity to help shape our approach to 36 23 gain new experiences, foster friendships with one EDI. another, improve their wellbeing and develop a sense O h ) Rp of belonging.' We significantly improved our diversity and inclusion Single, never monitoring, which has allowed us to better married Prefer not to say Underpinned by our ‘People Values’, we are guided in understand where we perform well and identify areas Married/civil everything we do and recognise that being a diverse where we want to improve. We have established an Living with partner partnership 1 and inclusive employer that is representative of our annual planning process that allows us to both (including separated) 2 17 society helps our purpose to provide accommodation monitor and track the results of our plan. Widowed or surviving civil that is safe, secure and affordable. We will continue to ~~=a~~ partnership partner arg© 0 recruit, develop and retain the most talented people. In 2024, we have made positive progress against all of the goals we set, and in 2025, we will focus on: Ethnicity Sexual Orientation We seek to work in partnership with our residents, volunteers, staff and stakeholders to create and A resident-focused approach to EDI deliver services that meet their needs and offer value Addressing areas where diversity is not as strong 6% 2% for money. We work within the spirit and the practice as it could be in certain beneficiary groups 5% % of the Equality Act 2010 by promoting a culture of Improving the sense of belonging amongst respect and dignity whilst actively challenging residents, volunteers, trustees and employees 10% discrimination. Establishing a route for beneficiaries to feed into DARAPAP decision making 36% 34% 14% 9% 6% 2% 76% White Asian/ Black/ Prefer Mixed/ Other Equality Asian African/ not to multiple ethnic A focus on protected We continue to be humbled by the positive feedback British Caribbean say ethnicities group characteristics we receive for providing inclusive environments but remain driven by the desire to do more and to Education continuously improve. Diversity It’s about everyone! 55% 18% 12% 7% Heterosexual/ Gay/ Prefer not straight lesbian to say Attended A state-run Independent Prefer not to school school, or fee-paying say outside the UK non-selective school Another description of Inclusion Bisexual sexuality 6% State-run or state-funded school, selective on academic, faith or other Feeling valued, 2% Don’t know respected and 1% Independent or fee-paying school where I received a 90%+ means-tested heard 16 bursary —_— OS ~~Oo~~ a t a h l o d i

Staying at LHA

Over 8,000 individuals benefited from a stay with LHA in 2023–24; a total of over 600,000 overnight stays were recorded.

Despite the addition of over 100 additional beds through the expansion of our Railton House property, once again, we saw demand for our services far outstrip supply, with over 16,000 unique enquiries for accommodation received. Our ambition to acquire new sites and to increase the number, affordability and range of facilities on offer to beneficiaries, therefore, continues to be a priority as we head into 2025.

The reason for people choosing to stay with LHA continued to become more and more focused on the financial benefits of our offer, along with the flexibility we offer. Location remains the primary reason people choose to stay with us.

Reasons to choose LHA

Location | Flexible terms | Bills included a Value for money Low deposit Overall cost Easy to book from abroad En-suite Quality Sociable aspect Recommended Size of room

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6.99% 5.83%
10.18% 9.44%
11.15% 11.28%
11.48% 11.82%
13.33% 13.16%
17.31% 17.23%
Oct 23 Oct 24
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Residents’ work/study status remained similar to previous years, with approximately 25% of residents in full-time study, 45% in full-time work and the remainder working or studying part-time or both.

70% of residents working full-time earned the London Living Wage or less. 75% of residents in full-time study were either self-funded or in receipt of funding support to complete their study.

Prior to staying with LHA, thirty percent of residents were living with their parents' support; our aim is to provide a first stepping stone into independent living in London for young people. A further 60% were either renting privately or in student accommodation. For 5% of residents, we were their first step on their journey from rough sleeping to living in safe and secure accommodation.

LHA Rewards, our loyalty discount programme for young people aged under 30, which allows them to receive an up to 15% discount on their accommodation, went from strength to strength with over 1,500 young people benefiting from the scheme.

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Annie and Leo
i,
=
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An interview with Annie and Leo from Bowden Court

How has your overall experience been staying in Bowden Court?

We moved in on 10 September 2024; in less than two months, we had a really nice experience. We found the team very helpful and attentive. Special mention to the House Manager, who has been regularly looking after us. In terms of people, everyone is super kind and friendly. It takes a simple hello to start the conversation and goes a long way.

It was not ordinary to see volunteers do housekeeping; we were surprised to see volunteers do that. We are very grateful for them because they help to keep the building clean and welcoming.

What do you love about the Bowden Court?

The location of Bowden Court was amazing; everything is close by, from TK Maxx and Westfield for shopping to aesthetic parks and cafes to explore. There are a lot of fun things to do around: long walks and pretty scenes. I would also like to give a huge appreciation to the chef; he has been so good at his work, and we like his food; we truly enjoy his curries and dishes. We recommend that our friends come and try his food. We were not sure about catering; it was our first experience and glad it turned out well.

How is your room? Is there anything we can improve?

We are staying on the higher floors, where we can see the sun rise and amazing sunsets. We are lucky to have such views. The room is filled with sunlight. The room is easy to maintain, with two cupboards and drawers. The radiator and other items are arranged thoughtfully in the room to maximise space. We have both collectively invested some time to rearrange and clean the room to make it feel like home.

Are there any incidents you would like to specify about Bowden?

Yes, it would be regarding payments. The team was able to extend my payments for a couple of days. They showed empathy and understood my situation really well. This built my trust and confidence not only with the team and the Manager but also with the company. This could have happened over a series of emails, but talking to reception made it very easy to convey. The human element plays an important role in our conversations with the team and the residents. The volunteers also keep checking on us during every meal, which makes us feel valued and important.

Are there any suggestions on how we can improve the services we provide in Bowden Court?

Everything in Bowden Court is really amazing, from the food to the team being very helpful. The introduction of clubs (walking, reading to get residents to interact more) with regular interaction on activities from staff would be great.

Anmol Resident I moved to an LHA London hostel two years ago, sharing a twin room, and it has been an incredible experience. The accommodation offers fantastic facilities, all well detailed on their website, and has been a pivotal part of my life here as an international student. Despite the 20-hour work restriction, I’ve been able to afford living centrally in London, saving valuable time and money on travel. The hostel’s admin team is incredibly friendly and works hard to ensure everyone has a peaceful, enjoyable stay. I’ve made lifelong friends and unforgettable memories here-it truly was one of my best decisions.

17

Trustees’ Review and Strategic Report

The trustees, who are also directors of the charity for the purpose of the Companies Act, submit their annual report with the balance sheet for the company on 30 September 2024 and the statement of financial activities for the year ending on that date, approved by the Board of Trustees, on 25 February 2025. The charity is governed by its Memorandum and Articles of Association. The charity is managed by Trustees who meet formally five times a year.

Trustees and Members

The trustees and co-oped members who served during the year are named on page 3 of this report. Additional or replacement trustees are appointed by the remaining trustees. Insurance against trustees' and officers' liabilities in relation to the charity were maintained during the year 2023/2024, as cited in the Memorandum and Articles of Association, Para 60 (1).

5 Underspend on Capital Works:

Some items have been moved to the 2024/25 budget.

The main underspend was the roof project at Friendship House, which had been included in the budget with an estimated spend of £5,800,000, but planning delays meant that this project will now start in early January 2025.

These capital works not only enhance the quality of our housing accommodation but also represent a strategic investment in the wellbeing and satisfaction of our residents. We look forward to continuing these efforts in the upcoming budget year, ensuring that our properties remain safe, comfortable and equipped to meet the evolving needs of our community.

Payment Policy

Strategic Report

The charity achieved surplus net incoming resources before transfers of £7,753,530 (2023; £6,723,067), which is approx. £115,000 over budget. There was increased income and lower repair costs during the year but a loss of over £400,000 of expected interest due to a property purchase.

There was a spend of £896,141 (2023; £950,004) on repairs and maintenance. Donations of £260,540 (2023; £347,800) were made during the year.

It is the charity’s policy to pay creditors in accordance with contracted terms, normally within 30 days.

Results

The net movement in funds during the year was a surplus of £8,285,530 compared with the previous year’s surplus of £6,723,067. There was an actuarial loss of £207,000 on the pension scheme. There was no adjustment to the property values last year, but a formal valuation by Colliers took place in September 2024, resulting in a revaluation deficit of £4,890,875.

Investments

Barclays Wealth and HSBC were the managers of the charity’s investment portfolio. However, no investments have been held during the year with the exception of Fixed Term Deposits of cash with Barclays and Handelsbanken.

Fixed Assets

We are pleased to provide an overview of the significant capital works completed during the financial year, demonstrating our commitment to enhancing our facilities and ensuring the continued wellbeing of our residents. The following key projects were undertaken, showcasing our dedication to maintaining and improving our housing properties:

1 Refurbishment Projects:

The toilets and showers at Belvedere House have been upgraded as well as carpets in the corridors at a cost of just under £220,000.

A full refurbishment at Railton House started during the year, with a capital spend of £493,320 and a remaining spend in the 2024/25 budget of £211,485.

2 Electrical Works:

Completed at Davies House at a cost of £61,655; the majority of sites were completed in 2022/23. These are enhancements to electrical infrastructure for improved safety and efficiency.

3 Plant Room Renovation:

Reserves

As of 30 September 2024, charitable funds stand at £21,253,945 and designated funds at £268,918,124. Within designated funds, there is a fixed asset reserve of £268,918,124, which represents the net book value of the fixed assets. All other reserves are available to maintain and develop the future work of the charity and are considered adequate by the trustees for these purposes. The reserves in the profit and loss account of LHA Services Ltd (LHAS), the subsidiary company, were £338,316 as of 30 September 2024 compared to £180,154 in 2023.

As a charity, LHA is obliged by the Charities Commission to set a policy on reserves, and this establishes a level that is appropriate for LHA for the year. LHA’s reserve policy is set to adequately support the continuation of the charity’s current activity and future capital expenditure. The charity’s aim is to monitor the reserves policy throughout the year through the budgetary process and to review the reserves policy to ensure it meets LHA’s changing needs and circumstances.

Our reserves policy is reviewed annually when we review our sources of income and balance the impact of future plans, commitments, our pension schemes and any management of financial risk involved. LHA’s target reserve level is set at six months' working capital, which currently stands at approximately £4.8m. Our current reserve levels are higher than this because we will be starting a major project in early 2025. A roof extension at Friendship House has gained planning permission in 2024, and construction works are planned in early 2025, with 62 additional beds completed in summer 2026. In addition, the higher reserves figure supports LHA actively looking for other opportunities like the Paddington site purchased during the year at a cost of £23m.

A new water heater and flue at Friendship House was purchased at a cost of £48,359 during the year. The upgrade to the plant room and control panel at New Mansion started in August 2024, with £69,600 spent out of a total of £198,920, with the project being completed in 2024/25.

4 New Site:

The purchase of a new site was completed in April 2024 at a purchase cost of £23,000,000, with additional purchase costs of £207,629 and some capital improvements, including kitchen works of £143,917. The site is next door to Railton, so it is operationally being run as one site with both a catered offering as well as the existing self-catering option.

Trustees’ Review and Strategic Report

Risk Management

The trustees actively review the major risks that the charity faces on a regular basis and believe that maintaining adequate resources, combined with conducting an annual review of the control of key financial systems, will enable the charity to cope with any future adverse conditions. The trustees reviewed the annual risk matrix in September 2024. The trustees have also examined other business operation risks faced by the charity and confirmed they have established systems to mitigate significant threats. The Finance Audit and Risk (FAR) Committee reviews and updates the Trustee Board as necessary and has identified the following as the highest risks:

LHA Services Limited for 2023/24

LHA Services Ltd (LHAS), wholly owned by the charity and acting under a licence and agreement signed in 1991, fills casual room vacancies, particularly during holiday times and between long-term bookings. LHAS has a taxable trading surplus and, in accordance with the covenant signed on 1 October 1997, an amount of £174,442 is to be transferred to the charity in 2024/25.

The trustees are responsible for keeping proper accounting records, which 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.

The trustees have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

By Order of the Board

Tony Perkins Company Secretary 25 February 2025

19 OC

LHA London Limited Independent auditor’s report to the members of LHA London Limited

Opinion

We have audited the financial statements of LHA London Limited (the ‘parent charitable company’) and its subsidiary LHA Services Limited (the ’group’) for the year ended 30 September 2024 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Charity Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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:

the information given in the strategic report and the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

Matters on which we are required to report by exception

In our opinion the financial statements:

give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 30 September 2024 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

In the light of the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the trustees’ annual 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:

the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or

certain disclosures of trustees’ remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit.

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement set out on page 4, 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 group and parent 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 group or parent 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 responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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 in 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 there is 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.

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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

20

LHA London Limited Independent auditor’s report to the members of LHA London Limited

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the group and parent charitable company’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.

Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group and parent charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or parent charitable company to cease to continue as a going concern.

We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.

We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations.

Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit report.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 which 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 any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

Signed:

Roger Ogden (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor 4 Victoria Square, St Albans, AL1 3TF Date:

07/03/2025

We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011 and 2022, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council.

We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.

21 O

LHA London Limited Financial statements for the year ended 30 September 2024

Consolidated Statement of Financial Activities

Designated Designated
General Fund Funds Total Total
£ £ 2024 £ 2023 £
Note
Income and endowments from:
Charitable activities
Operation of hostels 1 6,920,818 - 16,920,818 15,155,587
Other trading activities 4 3 74,917 - 374,917 242,568
Investments 1 ,329,146 - 1,329,146 1,182,959
Total 1 8,624,881 - 18,624,881 16,581,114
Expenditure on:
Raising Funds
Commercial trading operations		 206,255 - 206,255 230,554
Charitable Activities
Operation of hostels		 5 9,637,574 1,027,522 1,027,522 10,665,096 9,627,493
Total 9,843,829 1,027,522 10,871,351 9,858,047
Net income/(expenditure) 8,781,052 (1,027,522) 7,753,530 - 6,723,067
Transfers between funds (24,309,972) 24,309,972 -
Other recognised gains/(losses):
(Losses) on revaluation of fixed assets 9 - (4,890,875) (4,890,875) -
Actuarial gains on defined benefit pension 14 3 25,000 - 325,000 -
schemes -
Net movement in funds (15,203,920) 18,391,575 3,187,655 6,723,067
Reconciliation of funds:
Fund balances brought forward at 1 October 2023 36,457,865 250,526,549 286,984,414 280,261,347
Fund carried brought forward at 30 September 2024 21,253,945 268,918,124 290,172,069 286,984,414

All amounts relate to continuing activities; there were no recognised gains or losses other than those included above.

Group Charity
Note 2024 2023 2024 2023
£ £ £ £
Fixed Assets
Tangible Fixed Assets Tangible Fixed Assets 9 2 68,918,124 2 50,526,549 268,918,124 250,526,549
Investments 10 - - 150,000 150,000
2 68,918,124 2 50,526,549 269,068,124 250,676,549
Current Assets
Stock 11 20,947 16,390 20,9478 16,390
Debtors 12 777,893 772,710 81,962 798,764
Short term deposits 20,230,181 36,122,771 20,230,181 36,122,771
Cash at bank and in hand 2,127,235 1,861,429 1,826,126 1,640,730
23,156,256 38,773,300 22,959,216 38,578,655
Liabilities:
Creditors: amounts falling due within one year 13 (1,902,311) (2,315,435) (1,885,425) (2,300,944)
Net current assets 2 1,253,945 3 6,457,865 21,073,791 36,277,711
Net assets excluding pension asset 2 90,172,069 2 86,984,414 290,141,915 286,954,260
Pension asset 14 - - - -
Net Assets 290,172,069 286,984,414 290,141,915 286,954,260
Unrestricted funds:
General 15 21,253,945 2 36,457,865 21,223,791 36,427,711
Designated 15 68,918,124 250,526,549 268,918,124 250,526,549
290,172,069 286,984,414 290,141,915 286,954,260

A separate statement of financial activities and income and expenditure account are not presented for the company itself following exemptions afforded by section 408 of the Companies Act 2006. The financial statements were approved by the Trustees on 25th February 2025 and signed on their behalf by:

…………………………………. D Conroy Trustee

…………………………………. D Sawer Trustee

Date: 25th February 2025

Date: 25th February 2025

22 ~~a~~

LHA London Limited Consolidated Statement of Cash Flows For year ended 30 September 2024

2024 2023
£ £
Cash flows from operating activities Note
Net (Expenditure)/ income for the year 7,753,530 6,723,067
Adjustments for:
Depreciation of tangible fixed assets 1,027,522 979,268
Amortisation of intangible fixed assets - 1,136
Loss on disposal of intangible fixed assets 797 1,893
(Increase) in stocks (4,557) (4,796)
(Increase) in debtors (5,183) (197,942)
(Decrease) in creditors (413,124) (607,060)
Net cash (used in) / generated by operating activities 8,358,985 6,895,566
Cash flows from investing activities
Purchase of tangible fixed assets
(24,309,175) (1,563,337)
Net cash from investing activities (24,309,175) (1,563,337)
Change in cash and cash equivalents in the year 22 (15,626,784) 5,332,229
Cash and cash equivalents at beginning of year 21 37,984,200 32,651,971
Cash and cash equivalents at end of year 21 22,357,416 37,984,200

Notes to the financial statement

1. Accounting Policies

1.3. Group accounts

These accounts consolidate the results of the company and its wholly owned subsidiary, LHA Services Limited on a line by line basis. The financial activities of the charity are disclosed in note 3 to the financial

1.4. Income

Income for operation of hostels relates to income received in the letting of beds for long stays, catering income, sundry income and is shown net of value added tax and discounts.

Other trading income relates to the operations of the wholly owned trading subsidiary.

Investment income relates to the interest received from bank deposit accounts.

1.5. Expenditure

All expenditure is accounted for on an accruals basis and has been listed under headings that aggregate all the costs related to that activity. Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing LHA London Limited to the expenditure. Where costs cannot be directly attributed they have been allocated to activities on a basis consistent with the use of the resources. Direct costs, including directly attributable salaries, are allocated on an actual basis to the key strategic areas of activity. Overheads and other salaries are allocated between expenses headings on the basis of time

1.6. Fund Accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the Association and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the accounts. Investment income and gains or losses are allocated to the appropriate fund.

1.7. Valuation of properties

Functional freehold and long leasehold properties were included in the accounts at valuation for the first time in 2012/13. These have been valued by Colliers International Valuers UK LLP in September 2024. The properties will be revalued every three years.

1.8. Tangible fixed assets and depreciation

Assets costing £5,000 or more are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impairment.

1.1. Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The company is a public benefit entity for the purposes of FRS102 and a registered charity established as a company limited by guarantee and therefore has also prepared its financial statements in accordance with the Charities SORP FRS 102 (second edition - October 2019) - 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 and the Companies Act 2006 and Charities Act 2011 and 2022.

Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:

Freehold and long lease buildings Nil Short leasehold land and buildings 10-20% Straight Line Furniture, fixtures and equipment 10-20% Straight Line Motor vehicles 10-20% Straight Line Computer equipment 20-33.3% Straight Line

The principal accounting policies adopted in the preparation of the accounts are set out below.

1.2 Going concern

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the group and the company to continue as a going concern. The trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the group and the company has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

Moveable furniture and equipment is written out of the accounts after ten years as the Trustees consider that it has a negligible residual value.

1.9. Stock

Stocks, which consist of consumables are valued at the lower of cost and net realisable value.

1.10. Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of 3 months or less from the date of opening of the deposit.

23 CO

LHA London Limited Notes to the financial statements For the year ended 30 September 2024

1.11. Short-term deposits

Short-term deposit includes investments with a maturity of over three months but not longer than twelve months from the date of the opening of the deposit.

1.12 Liabilities

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in the settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the group and the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods and services it must provide.

1.13 Leased Assets

2. Judgments in applying accounting policies and key sources of estimation uncertainty

In applying the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The Trustees' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.

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, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future

The key estimates and assumptions made in these accounts are considered to be

Rentals under operating leases are charged on a straight line basis over the lease term.

1.14 Financial Instruments

The group and the company only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the group and the company and their measurement basis are as follows:

Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.

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

Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.

1.15 Employee benefits

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

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

1.16. Pensions

The Charity operates a pension scheme providing benefits based on final pensionable pay. The expected cost of providing pensions, as calculated periodically by professionally qualified actuaries, is charged to the Statement of Financial Activities, so as to spread the costs of pensions over the expected remaining service lives of current employees on the basis of a constant percentage of current and estimated future earnings.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17 Taxation

3 Financial activities of the charity

A summary of the financial activities undertaken by the charity is set out below:

2024 2023
£ £
Total income 18,249,964 16,650,295
Total expenditure on charitable activities (10,496,434) (9,807,493)
(Losses) on revaluation of fixed assets (4,890,875) -
Actuarial gains on defined benefit pension schemes 325,000 -
Net income 3,187,655 6,842,802
Total funds brought forward
Total funds carried forward		 286,954,260
290,141,915		 280,111,458
286,954,260
Represented by:
General Funds
Designated funds		 21,223,791
268,918,124		 36,427,711
250,526,549

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of financial activities because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group's and company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

24 CO

LHA London Limited

Financial statements for the year ended 30 September 2024 Consolidated Statement of Financial Activities

4 Income from other trading activities

The Charity's one wholly owned trading subsidiary, LHA Services Limited, which is incorporated in the UK, distributes all of its taxable profits to the Charity. The activities of this subsidiary are the provision of short term accommodation and catering services together with the provision of amenities to the residents of LHA London Ltd. The charity owns the entire issued share capital of 150,000 ordinary shares of £1 each. A summary of the trading results is shown below.

Profit and Loss Account 2024 2023
£ £
Turnover 374,917 242,568
Cost of sales and administrative expenses ( 206,255) (230,554)
Gross Profit 168,662 12,014
Interest receivable 5,780 4,874
Net profit 174,442 16,888
Amounts distributed to LHA London Limited (174,442) (16,888)
Retained (loss)/Profit in subsidiary - -

The assets and liabilities of the subsidiary were:

Current Assets
Creditors: amounts falling due within one year		 355,202
(16,886)
2024
£		 221,174
(41,020)
2023
£
Total net assets
Aggregate share capital and reserves		 338,316
338,316		 180,154
180,154

Included in administrative expenses are rent of £56,237 (2023 - £48,000) and management charges of £61,449 (2023 - £132,000) payable to LHA London Limited and these charges have been eliminated on consolidation.

5 Analysis of charitable expenditure

Staff costs Other Depreciation Total Total
(note 8) £ 2024 2023
£ £ £ £
Charitable expenditure
House operating costs
Support costs		 1,963,077
2,267,961		 4,729,555
382,861		 1,019,765
7,757		 7,712,397
2,658,579		 7,304,235
1,928,432
Governance costs (note 6) - 33,580 - 33,580 47,026
Donations (note 7) - 260,540 - 260,540 347,800
Total 4 ,231,038 5,406,536 1 ,027,522 10,665,096 9,627,493

Charitable expenditure

Details of other costs

Details of other costs
House Operating Support Total Total
Costs Costs 2024 2023
£ £ £ £
Repairs and Maintenance 895,370 895,370 771 896,141 950,004
Utilities 1,336,989 3,435 1,340,424 1,442,856
Catering 437,324 - 437,324 352,458
Insurance
Security		 432,073
230,767		 17,658
-		 449,731
230,767		 319,953
204,579
Rent and rates 9 2,614 154,295 246,909 244,549
Cleaning, laundry, waste, pest control 457,993 3,175 461,168 390,909
Other costs 846,425 846,425 203,527 1,049,952 771,701
4,729,555 382,861 5,112,416 4,677,009
Governance costs (note 6)
Donations (note 7)		 33,580
260,540		 47,026
347,800
Total other costs 5,406,536 5,071,835
6 Governance costs
Governance costs include: 2024 2023
£ £
Audit fees 25,300 36,430
Insurance against Trustees' and Officers' liabilities 7,456 10,289
Trustees' expenses 824 307
33,580 47,026

6 Governance costs

25 ‘a

LHA London Limited

Financial statements for the year ended 30 September 2024 Consolidated Statement of Financial Activities

7 Donations

All donations were made to institutions and these are broken down as follows

2024 2024 2023
£ £
Albert Kennedy Trust 70,000 -
New Horizons 32,780 30,000
Glass Door - 25,100
C4WS
The Spires Centre
St Mary Le Bow		 -
-
14,700		 30,000
30,000
14,700
Evolve - 25,000
Zacchaeus 2K Trust - 25,000
Project Seventeen - 20,000
Women & Girls Network 70,000 25,000
Refugees at Home - 16,000
BEAM - 29,000
Cardinal Hume 70,000 28,000
Bromley & Croydon Women's Aid
The Passage
Project 25
Other		 -
-
3,060
260,540		 20,000
30,000
-
347,800
8 Staff costs
Wages and salaries 2024
£
3,116,209		 2023
£
2,737,847
Social security costs
Other Pension costs		 295,335
819,494
4,231,038		 258,569
578,838
3,575,254

8 Staff costs

Included in Wages and salaries costs above are compensation payments totalling £94,559 and relating to 2 former employees.

Average number of employees during the year
Head Office
Direct maintenance staff
Hostel staff		 19
7
61		 18
7
59
87 84

Number of employees with emoluments (excluding employer pension) in excess of £60,000:

2024 2023
£60,000 - £70,000 £60,000 - £70,000 £60,000 - £70,000 - 1
£70,000 - £80,000 £70,000 - £80,000 £70,000 - £80,000 1 -
£80,000 - £90,000 £80,000 - £90,000 £80,000 - £90,000 - 2
£100,000 - £110,000 £100,000 - £110,000 £100,000 - £110,000 2 -
£150,000 - £160,000
£160,000 - £170,000
£180,000 - £190,000
£190,000 - £200,000		 £150,000 - £160,000
£160,000 - £170,000
£180,000 - £190,000
£190,000 - £200,000		 £150,000 - £160,000
£160,000 - £170,000
£180,000 - £190,000
£190,000 - £200,000		 -
-
1
1		 1
1
-
-

8 Staff costs - continued During the reporting period, payments totalling £94,559 (2023: £Nil) were made to compensate former employees for loss of office.

9 Tangible fixed assets - Group and Charity

Leasehold
Freehold land land and Property Plant and
and buildings buildings Improvements Machinery Total
£ £ £ £ £
Cost
At 1 October 2023 At 1 October 2023 234,613,165 9,862,421 17,923,702 1,202,550 263,601,838
Additions Disposals
Revaluations At 30		 23,208,129
-		 -
-		 1,016,384
-		 84,662
(592,910)		 24,309,175
(592,910)
September 2024 (5,213,105) 322,230 - - (4,890,875)
252,608,189 10,184,651 18,940,086 694,302 282,427,228
Depreciation
At 1 October 2023
-		 - 1 2,073,040 1,002,249 13,075,289
Charge for the year Charge for the year
-		 - 9 78,120 49,402 1,027,522
Eliminated on disposal
-		 - (750) (592,957) (593,707)
At 30 September 2024
-		 - 13,050,410 458,694 13,509,104
Net Book Value
At 30 September 2024
252,608,189		 10,184,651 5,889,676 235,608 268,918,124
At 30 September 2023
234,613,165		 9,862,421 5,850,662 200,301 250,526,549

The Trustees undertook a valuation of all the freehold and long leasehold properties in September 2024. The valuation was undertaken by Colliers CRE and the properties were valued at £268,355,000 (this includes freehold property, leasehold properties and property improvements above).

Property improvements include £302,075 (2023: £297,835) of assets under construction.

10 Investments

10 Investments
Group Charity
2024 2023 2024 2023
£ £ £ £
Investment in subsidiary - cost
At 1 October 2023 and 30 September 2024 - - 150,000 150,000
11 Stocks
Group Charity
2024 2023 2024 2023
£ £ £ £
Household equipment and food 20,947 16,390 20,947 16,390

11 Stocks

The total of employee benefits, including employer pension contributions received by Key Management Personnel in 2024 is £637,878 (2023: £544,537). Key Management Personnel are the Chief Executive Officer, Finance Director, Director of Estates and Director of Operations.

26 ‘a

LHA London Limited

Financial statements for the year ended 30 September 2024 Consolidated Statement of Financial Activities

Reconciliation of opening and closing balances of the present value of the scheme liabilities

12 Debtors 12 Debtors Group Charity
2024 2023 2024 2023
£ £ £ £
Trade debtors 153,879 131,665 153,879 131,665
Other debtors 64,771 83,662 64,771 83,662
Amounts owned from group companies - - 107,193 26,054
VAT recoverable - 59,612 - 59,612
Prepayments and accrued income 559,243 497,771 556,119 497,771
777,893 772,710 881,962 798,764

13 Creditors: amounts falling due within one year

Group Charity
2024 2023 2024 2023
£ £ £ £
Trade creditors 591,511 823,028 591,511 822,463
Other taxes and social security costs 138,985 72,086 138,985 72,086
Amounts owed to group companies - - - -
Other creditors 65,482 32,774 65,482 32,774
Fees and deposits in advance 632,071 756,342 631,735 756,342
Accruals 474,262 631,205 457,712 617,279
1,902,311 2,315,435 1,885,425 2,300,944

14 Pension commitments

The charity makes contributions to a defined contribution pension scheme on behalf of a number of employees who are not included within the defined benefit pension scheme.

Contributions in the year totalled £nil (2023: £148,120).

2024 2023
£000 £000
Scheme Liabilities at start of period 5,485 5,547
Current service costs 23 53
Interest cost 302 291
Changes due to settlements and curtailments 524 -
Changes to financial assumptions 524 (402)
Experience gains/losses on liabilities 180 100
Benefits paid (176) (104)
Scheme Liability at end of period 6,862 5,485

Reconciliation of opening and closing balances of the fair value of the scheme assets

2024 2023
£000 £000
Fair value of scheme assets at start of period 9,594 9,327
Interest on assets 532 499
Expected return on scheme assets 356 (410)
Contributions by employer - 282
Benefits paid (176) (104)
Fair value of scheme assets at end of period 10,306 9,594
Total expense recognised in the statement of financial activities
2024 2023
£000 £000
Current service cost Net interest Total expense recognised in 23 53
the statement of financial activities (230) (208)
( 207) (155)
Actuarial movement recognised
Actuarial gains and losses Impact of non-recogniton of asset 872
movement and associated interest (1,197)
(325)

Assumptions

The Charity operates a defined benefit scheme in the UK. The scheme is closed to new entrants. As a consequence the current service cost calculated under the projected unit method can be expected to increase over time, as the average age of the membership increases. A full actuarial valuation was carried out at 1 April 2021 and updated to 30 September 2024 by a qualified actuary, independent of the scheme's sponsoring employer. The major assumptions used by the actuary are shown below.

The Charity currently pays contributions at the rate of 41.3% of pensionable pay following the actuary valuation on 1st April 2021.

Present values of scheme liabilities, fair value of assets and surplus/(deficit)

2024 2023
£000 £000
Fair value of scheme assets 10,306 9,594
Present value of scheme liabilities (6,862) (5,485)
Surplus/(Deficit) in scheme 3,444 4,109
asset not asset not
recognised recognised

The assets of the scheme have been taken at market value and the liabilities have been calculated using the following principal actuarial assumptions:

2024 2023
% per annum % per annum
Rate of discount 5 .20 5.60
Inflation (RPI) 3.10 3.25
Inflation (CPI) 3.05 2.65
Salary increases 3.05 2.65
Pension increases:
Accrued before 1 July 2016 5.00 5.00
Accrued after 1 July 2016 3.05 2.65
Revaluation rate for deferred
pensioners 5 .00 5.00
Commutation Nil Nil
Life expectancy
Male retiring at age 65 in 2022 22.4 22.3
Female retiring at age 65 in 2022 24.7 24.7
Male retiring at age 65 in 2042 23.4 23.4
Female retiring at age 65 in 2042 25.9 25.8

Expected long term rate of return

The scheme's assets are invested in a unitised with profit fund. It is assumed that the long term rate of return on the fund will be 5.2% per annum (2023: 5.6%).

27 ‘a

LHA London Limited

Financial statements for the year ended 30 September 2024 Consolidated Statement of Financial Activities

15 Funds

Group Group
Balance at 30
Balance at 1 September
October 2023 Income Expenditure Transfers Revaluation Gains(losses) 2024
£ £ £ £ £ £ £
General fund 36,457,865 18,624,881 (9,843,829) (24,309,972) - 325,000 21,253,945
Fixed asset reserve 250,526,549 - (1,027,522) 24,309,972 (4,890,875) - 268,918,124
286,984,414 18,624,881 (10,871,351) - (4,890,875) 325,000 290,172,069
Company Balance at 30
Balance at 1 September
October 2023 Income Expenditure Transfers Revaluation Gains(losses) 2024
£ £ £ £ £ £ £
General fund 36,427,711 18,418,626 (9,637,574) (24,309,972) - 325,000 21,223,791
Fixed asset reserve 250,526,549 - (1,027,522) 24,309,972 (4,890,875) - 268,918,124
-
286,954,260 18,418,626 (10,665,096) - (4,890,875) 325,000 290,141,915
16 Analysis of group net assets between funds
General Designated Total
Funds Funds Funds
£ £ £
Tangible fixed assets - 2 68,918,124 2 68,918,124
Short term deposits 20,230,181 - 20,230,181
Cash at bank and in hand 2,127,235 - 2,127,235
Other net current liabilities Other net current liabilities
(1,103,471)		 (1,103,471)
21,253,945 268,918,124 290,172,069

16 Analysis of group net assets between funds

28 OC

LHA London Limited

Financial statements for the year ended 30 September 2024 Consolidated Statement of Financial Activities

17 Operating lease commitments

At 30 September 2024 the group’s commitments under non-cancellable operating leases were as follows:

Land & Buildings Land & Buildings
2024 2023
£ £
Less than 1 year 137,281 137,281
Between 2 and 5 years 205,922 335,116
Total 343,203
472,397
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18 Capital commitments

At 30 September 2024, the group had capital commitments of £338,396 (2023: nil) relating to property refurbishment.

19 Limited liability

The charitable company is limited by guarantee and does not have a share capital. Every member of the company undertakes to contribute to the assets of the company in the event of the same being wound up during the time he or she is a member, or within a year after he or she ceases to be a member, such amounts as may be required, not exceeding £10.

20 Related Party Transactions

The Trustees receive no remuneration. Travel expenses of £485 (2023: £307) were reimbursed to 2 (2023: 4) Trustees during the year.

Included in administrative expenses are rent of £56,237 (2023 - £48,000) and management charges of £61,449 (2023 - £132,000 payable to LHA London Limited by LHA Services Limited. The charges were eliminated on consolidation.

21 Analysis of cash and cash equivalents

2024 2023 £ £ Cash in hand and at bank 2,127,235 1,861,429 Short term deposits 20,230,181 36,122,771 22,357,416[37,984,200]

22 Analysis of changes in net debt

At 1 October At 30 Cash flows 2023 September 2024 £ £ £ Cash in hand and at bank 1,861,429 265,806 2,127,235 Short term deposits 36,122,771 (15,892,590) 20,230,181 37,984,200 (15,626,784) 22,357,416

29 CO

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