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← Teen Challenge London

2025-03-31-accounts

Charity registration number 1069777 (England and Wales)

Company registration number 03550328

TEEN CHALLENGE LONDON

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

TEEN CHALLENGE LONDON

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Rev S Derbyshire Rev. D Langton Dr L Logan MBE Rev Christopher Scott Secretary C Coughlan Charity number 1069777 Company number 03550328 Principal addresses Drayton Hall Wilkerson House Hall Lane Uphall Road Drayton Ilford Norwich Essex NR8 6DP IG1 2JJ Registered office Essex House 8 The Shrubberies George Lane South Woodford London United Kingdom E18 1BD Auditor Caton Fry & Co Ltd Essex House 7 The Shrubberies George Lane South Woodford London E18 1BD Bankers Barclays Bank 180 High Road Ilford Essex IG1 1LS Solicitors Red Kite Solicitiors 14-15 Spilman Street Carmarthen West Wales SA31 1SR Project manager Javier Lesta-Candal

TEEN CHALLENGE LONDON

CONTENTS

Page
Trustees' report 1 - 6
Statement of trustees' responsibilities 7
Independent auditor's report 8 - 11
Statement of financial activities 12
Balance sheet 13
Statement of cash flows 14
Notes to the financial statements 15 - 29

TEEN CHALLENGE LONDON

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2025

The trustees present their report and financial statements for the year ended 31 March 2025 which are also prepared to meet the requirements for a directors' report and accounts for Companies Act purposes.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

The charity's objects as specified in the Memorandum and Articles of Association are:

a) To advance the Christian faith in accordance with the Statement of Beliefs appearing in the County of Greater London, the surrounding areas, and in such other parts of the United Kingdom or the world as the Trustees of the Charity may from time to time think fit.

b) To relieve persons who are in conditions of need or hardship or who are aged sick or who are homeless, including by means of helping and assisting individuals affected by alcohol, drug or other substance abuse or addiction and to relieve the distress caused thereby in the said locations and in such other parts of the United Kingdom or the World as the Trustees may from time to time think fit.

c) To promote and fulfil such other charitable purposes beneficial to the community in the said locations and in such other parts of the United Kingdom or the world as the Trustees may from time to time think fit.

The policies adopted in furtherance of these objects are:

1) Offering residential rehabilitation to members of the public who have shown an interest in finding help with their addiction problems.

2) Outreach work through different means such as street work, bus ministry, church events and presentations, and testimony evenings.

3) Providing vocational training to enhance employment opportunities helping them go back into society with recognised achievements and qualifications.

There has been no change in these during the year.

Reporting Public Benefit

The trustees have paid due regard to guidance issued by the Charity Commission on public benefit in deciding what activities the charity should undertake. As a small charity the report focuses on the main activities undertaken by the charity to further the charitable purposes for the public benefit.

TEEN CHALLENGE LONDON

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

DRAYTON HALL

News about the program moving from London to Drayton has seen a larger amount of interest from around the country about the services on offer at Drayton. We saw during this year the bed occupancy was 19.8 an increase of 2.8 from the previous year of 17, our first year at Drayton.

In April, we completed the installation of the new boiler in the toilet area by the Bistro. The old boiler had broken down, we used this opportunity to extend the hot water to the showers replacing the electric boilers above the toilets with a supply link to this new boiler. The cost of £30,000 was considerable amount for us but was very necessary.

In July, we had a full occupancy rate of 20 men and 15 on the waiting list to come into the program. During this time, we made a step of faith to extend the bed occupancy from 20 to 28. This meant that we had to prepare the Hall and add staff for the anticipated increase. Also in July, we received a generous grant from the Silas Trust £2,000 per month for 12 months.

In September, 9 men graduated from the rehabilitation program.

In October, we purchased extra furniture/ beds/sofas, at a cost of £24,000, and relocated the classroom to the Audi building.

In December, our outreach leader Michael Ovenden went on to be a pastor of a local church in East Ham and in January with the help of Rev Vic Ready we started contacting local churches in the Norwich area for us to visit to raise awareness of the work of Teen Challenge in Drayton.

In January 2025, we got approval from the council for the increase in bed occupancy.

In February, it became apparent the kitchen was not coping with the increase in occupancy and in March we purchased 2 x (refurbished) Rational cookers and a (refurbished) double tray washing machine. Currently we are waiting for the sinks to be upgraded and the Dishwasher to be installed.

5:17 Coffee House continues to be a support for the men who have finished or are on the later stages of their rehabilitation program. The men are introduced into a real live working environment learning new skills such as Barista and customer services. Many of the men find that the coffee shop is a great addition to their recovery and program whilst interacting with the general public.

We committed to renting a 4 bedroom property within a 20 minute walk from Drayton Hall the property being located at 250 High Road, Drayton to release bedrooms for staff who were residing at the hall.

Also in the year we purchased 2 x 8 seat vehicles with funding being received from The Graham Dacre Charitable Fund and from City Gates Church Ilford.

Currently, we adjusting and trying to stabilize the higher occupancy level at the Hall.

We are thankful to God for the help we have received and for the continued growth taking place.

TEEN CHALLENGE LONDON

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

WILKERSON HOUSE

Renovation works at the property were undertaken during the year three rooms being totally refurbished and a further five rooms having a mini refurbishment. Two new kitchens were installed and other general maintenance tasks undertaken including repairs to the roof.

OUTREACH PROJECTS

In this report I wish to provide an update from TC’s Outreach from the period between August 2024 - November 2024. This will include short overviews from outreach events and church presentations TC were involved in. I’m sure as you view this report you will be encouraged by engagement within the communities we reached into and our increasing influence in a variety of locations.

Church Presentations

Church presentations have been booked and given weekly other than the occasional exceptions. From the period July ’23- July ‘24 TC London held a total of 34 church presentations. This number does not include other presentations that have been held outside of Sunday services.

Continued engagement with Teen Challenge London Partners

During this period as there was no defined outreach, I felt the best way forward was to continue to build and strengthen the relationships established with churches and other community organisations through the previous years ‘Joshua Projects’ and previous Teen Challenge outreaches.

This would include visiting their sites, serving alongside them in the programs they run. Whilst there we would engage the clients that used their facilities in conversation. Also, whilst in the area we would engage in street outreach reaching out to the homeless and addicted in the area. During these visits it gave the opportunity to make an introduction of 2 TC graduates to our partners (who would continue the outreach in the London area).

Training/Equipping sessions

TC was able to give 2 training sessions with 2 churches during this period.

In Harlow we were able to give training on both drug/ addiction awareness and evangelism training to the church’s youth group. The following week the youth group went out into the streets of Harlow for a time of evangelism, for some this was the first time.

In Chatham the training around drug/ addiction awareness was given to volunteers for St John’s Chatham. This followed into an evening session where testimonies shared and a Gospel message. Out of this gathering one of the men in attendance received Jesus, he was homeless, we continued to work with him and the local services. He was housed soon after.

Presentations

From August - 8th December Teen Challenge London were able to visit 9 different churches to give presentations and updates to partners.

Other outreach opportunities/ notable updates

TEEN CHALLENGE LONDON

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Education & Training Centre Drayton Hall

Below is a list of the courses completed by residents at Drayton Hall during the financial year, all courses are City & Guilds recognised.

Centre for Excellence Achievements 2024-2025 Centre for Excellence Achievements 2024-2025
01.04.2024- 31.03.2025 Accredited by City and Guilds
Level 1 Functional Skills English 3
Level 2 Functional Skills English 1
Level 1 Effective Communication 15
Level 1 Effective Skills and Qualities and
12
Attitudes
Level 1 Managing Personal Finance 16
Level 1 Equality and Diversity 9
Introduction to Customer Services 12
Level 1 Employability Personal Development
8
Award
TOTAL 76
Accredited by Highfield / Essential Food Hygiene Online Learning
Level 2 Food Safety 12
TOTAL 12
Trainer Courses
Health and Safety 6
TOTAL 6
Health and Safety
Induction Health and Safety 34
EXTRAS
Allergy Awareness 2
Level 2 Counselling Skills 2
TOTAL 4
132
TOTAL OF ALL COURSES

Future Developments

TEEN CHALLENGE LONDON

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

Financial review

Incoming resources for the year stood at £1,022,307 (2024 - £979,374). The net incoming resources amounted to £43,816 (2024 - £140,069). Voluntary income amounted to £357,598 (2024 - £295,907) and represented 35.0% (2024 - 30.2%) of the charity’s total income. This increase in income has meant that the charity does require an audit during the year.

The majority of ongoing resources have been utilised on charitable activities related to supporting residents at the centre for those with addictions: staff costs for services and support, expenses directly relating to the residents, and the ongoing costs of the premises themselves.

The net assets shown in the balance sheet amounted to £1,923,551 (2024 - £1,879,737) of which £500,000 (2024 : £500,000) were restricted. Included in the above figure are freehold properties shown at cost of £2,008,882 (2024 - £2,008,882).

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to be 6 months' expenditure. This amounts to approximately £489,000. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. At the year end the level of reserves, excluding the freehold land and buildings, improvements to property and related loan amounted to £342,864 (2024 : £360,628).

Investment strategy

The reserves are held on cash deposits, and although consideration has been given to alternative forms of investment, the Trustees decided to retain the cash deposits.

Risks

The trustees has assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Structure, governance and management

The charity is a company limited by guarantee and was incorporated on 22 April 1998. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Revd L Cheshire (Resigned 30 June 2025) Rev S Derbyshire Rev. D Langton Dr L Logan MBE Rev Christopher Scott

The existing Trustees appoint any new Trustees following the provisions laid out in the Charity's governing instrument.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £10 in the event of a winding up.

The Board of Trustees are responsible for the strategic direction and policy of the charity. A scheme of delegation is in place, and day to day responsibility for the provision of services rests with the Project Manager. The Trustees, who are also Directors of the charitable company, meet together regularly, at least four times per year, to pray, review progress and make decisions on future developments.

TEEN CHALLENGE LONDON

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

New trustees are provided with a comprehensive information pack informing them of their potential roles as Trustees.

All staff are paid in line with their job role.

Teen Challenge London works closely with Teen Challenge UK and other Teen Challenge Groups throughout the country, but is legally independent of them.

Auditor

In accordance with the company's articles, a resolution proposing that be reappointed as auditor of the company will be put at a General Meeting.

Small company exemptions

This report has been prepared and delivered in accordance with the provisions in Part 15 of Companies Act 2006 applicable to companies subject to the small companies' regime.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

Rev S Derbyshire

Trustee

3 December 2025

TEEN CHALLENGE LONDON

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2025

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

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

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

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

TEEN CHALLENGE LONDON

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TEEN CHALLENGE LONDON

Opinion

We have audited the financial statements of Teen Challenge London (the ‘charity’) for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

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 charity 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 the provisions available for small entities, in the circumstances set out in note 27 to the financial statements, 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 charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

TEEN CHALLENGE LONDON

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF TEEN CHALLENGE LONDON

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires

us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

TEEN CHALLENGE LONDON

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF TEEN CHALLENGE LONDON

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.

Our approach was as follows:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most are significant are those that relate to: - compliance with Statement of Recommended Practice : Accounting and Reporting by Charities 2015 as this is financial reporting framework that the financial statements are based on.

The key laws and regulations we have considered in this context included the Companies Act and Charities Act. In addition, we have considered provisions of other laws and regulation that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We assessed the risks of material misstatements in respect of fraud as follows:

Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above by:-

We corroborated our enquiries through:

We considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries into our audit approach both at the year end and during the course of the year. We tested journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.

Based on the results of our risk assessment we designed our audit procedures to identify and to address material misstatements in relation to fraud, including:

The engagement partner considers the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations.

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

TEEN CHALLENGE LONDON

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF TEEN CHALLENGE LONDON

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

The comparative figures were not audited.

Use of our report

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

Mr Jonathan Caton (Senior Statutory Auditor)

For and on behalf of Caton Fry & Co Ltd Chartered Accountants Statutory Auditor

Essex House 7 The Shrubberies George Lane South Woodford London E18 1BD

Date: .........................

TEEN CHALLENGE LONDON

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2025

Unrestricted
Restricted
funds
funds
2025
2025
Notes
£
£
Income from:
Donations and legacies
3
331,598
26,000
Charitable activities
4
534,665
-
Investments
5
130,044
-
Total income
996,307
26,000
Expenditure on:
Raising funds
6
2,845
-
Charitable activities
7
974,426
1,220
Total expenditure
977,271
1,220
Gross transfers
between funds
24,780
(24,780)
Net income for the year/
Net movement in
funds
9
43,816
-
Reconciliation of funds:
Fund balances at 1 April 2024
As originally reported
1,379,736
500,000
Prior year adjustment
-
-
Fund balances at 1 April 2024
1,379,736
500,000
Fund balances at 31 March
2025
1,423,552
500,000		 Total
Unrestricted
Restricted
funds
funds
2025
2024
2024
£
£
£
357,598
295,907
-
534,665
580,358
-
130,044
103,109
-
1,022,307
979,374
-
2,845
2,786
-
975,646
836,519
-
978,491
839,305
-
-
47,665
(47,665)
43,816
187,734
(47,665)
1,879,736
1,221,002
547,665
-
(29,000)
-
1,879,736
1,192,002
547,665
1,923,552
1,379,736
500,000		 Total
2024
£
295,907
580,358
103,109
979,374
2,786
836,519
839,305
-
140,069
1,768,667
(29,000)
1,739,667
1,879,736

All income and expenditure derive from continuing activities.

The notes on pages 15 to 29 form part of these financial statements.

TEEN CHALLENGE LONDON

BALANCE SHEET

AS AT 31 MARCH 2025

Notes
Fixed assets
Tangible assets
14
Investments
15
Current assets
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due within
one year
17
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
18
Net assets
Income funds
Restricted funds
20
Unrestricted funds		 2025
£
£
2,214,907
2
2,214,909
38,478
227,726
266,204
(126,194)
140,010
2,354,919
(431,367)
1,923,552
500,000
1,423,552
1,923,552		 2024
£
£
2,242,580
2
2,242,582
24,038
262,371
286,409
(133,151)
153,258
2,395,840
(516,104)
1,879,736
500,000
1,379,736
1,879,736

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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

The financial statements were approved by the Trustees on 3 December 2025

Rev S Derbyshire Trustee

Company Registration No. 03550328

TEEN CHALLENGE LONDON

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2025

Notes
Cash flows from operating activities
Cash (absorbed by)/generated from
operations
25
Investing activities
Purchase of tangible fixed assets
Proceeds from disposal of tangible fixed
assets
Loans given in the year
Purchase of investments
Investment income received
Net cash generated from/(used in) investing
activities
Financing activities
Repayment of bank loans
Net cash used in financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2025
£
(67,806)
10,600
(500)
-
130,044
(71,990)		 2024
£
£
(34,993)
(112,746)
2,287
-
(2)
103,109
72,338
(57,200)
(71,990)
(34,645)
262,371
227,726		 £
216,780
(7,352)
(57,200)
152,228
110,143
262,371

TEEN CHALLENGE LONDON

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

Charity information

Teen Challenge London is a private company limited by guarantee incorporated in England and Wales. The registered office is Essex House, 8 The Shrubberies, George Lane, South Woodford, London, E18 1BD, United Kingdom.

The activities of the charity, as described in the Trustees report, are carried out at Wilkerson House in Ilford or Drayton Hall in Norfolk.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

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

The financial statements have been prepared under the historical cost convention other than the donation of Drayton Hall which has been reflected at market value. The principal accounting policies adopted are set out below.

1.2 Going concern

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

1.3 Charitable funds

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

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

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

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised on the cash basis.

Donated services and assets are recognised when the charity has control over the item, and conditions associated with the donated item have been met, the receipt of economic benefit from the use of the charity of the item is probable and that economic benefit can be measured reliably.

TEEN CHALLENGE LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

Income from trading activities are reflected on a receivable basis.

Income from investments and interest are included when receivable.

Rental income is recognised on the cash basis.

1.5 Resources expended

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to that category. Where costs cannot be directly attributed to particular headings they have allocated to activities on a basis consistent with the use of resources.

Charitable activities comprises costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities, and those costs of an indirect nature necessary to support them.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the independence examination and professional fees linked to the strategic management of the charity.

Support costs are allocated on a basis consistent with the use of resources, as indicated in the notes to the financial statements.

1.6 Tangible fixed assets

Tangible fixed assets costing £1,000 or more are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impairment.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings See below
Improvements to property 10% on cost
Fixtures and fittings 25% on cost
Computers 33% on cost
Motor vehicles 25% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

Since in the opinion of the Trustees, the freehold properties are maintained in a state of repair such that their estimated residual value is no less than their cost, the annual charge for depreciation of freehold properties is nil.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

TEEN CHALLENGE LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

1.8 Impairment of fixed assets

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

1.9 Debtors

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

1.10 Creditors and provisions

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

1.11 Cash and cash equivalents

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

1.12 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

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

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

Basic financial assets

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

Basic financial liabilities

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

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

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

TEEN CHALLENGE LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.13 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 charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14 Retirement benefits

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

1.15 Volunteer services

The value of services provided by volunteers is not incorporated into these financial statements.

1.16 Taxation

The charitable company is exempt from tax on income and gains falling within sections 466 to 493 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

Irrecoverable VAT is charged against the category of resources expanded for which it was incurred.

2 Critical accounting estimates and judgements

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

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

3 Donations and legacies

Unrestricted Restricted Total Unrestricted
funds funds funds
restated
2025 2025 2025 2024
£ £ £ £
Donations and gifts 331,598 26,000 357,598 290,907
Donated goods and services - - - 5,000

TEEN CHALLENGE LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

4 Income from charitable activities

Unrestricted Unrestricted
funds funds
2025 2024
£ £
Students' housing benefits 466,762 513,383
Students' DWP benefits 67,903 66,975
534,665 580,358

5 Income from investments

6 Unrestricted
Unrestricted
funds
funds
2025
2024
£
£
Rental income
127,023
101,620
Interest receivable
3,021
1,489
130,044
103,109		 Unrestricted
Unrestricted
funds
funds
2025
2024
£
£
Rental income
127,023
101,620
Interest receivable
3,021
1,489
130,044
103,109		 Unrestricted
Unrestricted
funds
funds
2025
2024
£
£
Rental income
127,023
101,620
Interest receivable
3,021
1,489
130,044
103,109
103,109
Raising funds
Unrestricted
Unrestricted
funds
funds
2025
2024
£
£
Raising donations and legacies
Staff costs
2,845
2,786
2,845
2,786
2,786

Total 2024 £ 282,570 56,088 37,108 18,979 1,123 49,684 1,637 447,189 364,016 25,314 836,519 836,519 - 836,519
Rehab-
Outreach
Egangs		 ilitation
ministry		 2024
2024
2024		 £
£
£		 199,899
82,671
-		 56,088
-
-		 20,113
16,995
-		 2,152
1,827
15,000		 1,123
-
-		 49,684
-
-		 -
1,637
-		 329,059
103,130
15,000		 344,549
19,467
-		 25,314
-
-		 698,922
122,597
15,000		 698,922
122,597
15,000		 -
-
-		 698,922
122,597
15,000
Total 2025 £ 382,056 76,387 39,306 13,742 1,578 43,450 - 556,519 385,101 34,026 975,646 974,426 1,220 975,646
Rehab-
Outreach
Egangs		 ilitation
ministry		 2025
2025
2025		 £
£
£		 287,888
94,168
-		 76,387
-
-		 22,939
16,367
-		 3,112
630
10,000		 1,578
-
-		 43,450
-
-		 -
-
-		 435,354
111,165
10,000		 364,144
20,957
-		 34,026
-
-		 833,524
132,122
10,000		 832,304
132,122
10,000		 1,220
-
-		 833,524
132,122
10,000
Charitable activities Staff costs Costs of residence & catering Travel Donations Training centre Bank loan interest Profit on disposal of assets Share of support costs (see note 8) Share of governance costs (see note 8) Analysis by fund Unrestricted funds Restricted funds
7

TEEN CHALLENGE LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

8
Support costs
Depreciation
Rent, rates & water
Light and heat
Repairs & renewals
Office
Finance
Audit fees / Indepedent
Examination
Accountancy
Legal and professional
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
84,881
-
46,913
-
87,071
-
137,563
-
27,244
-
1,429
-
-
6,640
-
5,920
-
21,466
385,101
34,026
385,101
34,026		 2025
£
84,881
46,913
87,071
137,563
27,244
1,429
6,640
5,920
21,466
419,127
419,127		 Support
costs
Governance
costs
£
£
83,258
-
30,351
-
136,002
-
94,428
-
18,486
-
1,491
-
-
3,984
-
5,580
-
15,750
364,016
25,314
364,016
25,314		 2024
£
83,258
30,351
136,002
94,428
18,486
1,491
3,984
5,580
15,750
389,330
389,330

Support costs are allocated to activities based on staff time.

9 Net movement in funds 2025 2024
£ £
Net movement in funds is stated after charging/(crediting)
Depreciation of owned tangible fixed assets 84,881 83,258
(Profit)/Loss on disposal of fixed assets - (1,637)
Audit Fees/Independent examination 7,968 3,984
Bank loan interest 43,450 49,684
Operating lease charges 12,448 1,248

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration, reimbursement of expenses or benefits from the charity during the year.

TEEN CHALLENGE LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

11 Employees

The average monthly number of employees during the year was:

Managers
Support
Administration
Total
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2025
Number
2
9
1
12
2025
£
354,761
23,722
6,418
384,901		 2024
Number
2
5
1
8
2024
£
263,388
16,838
5,130
285,356

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

Remuneration of key management personnel

The remuneration of key management personnel was as follows:

2025 2024
£ £
Aggregate compensation 51,098 50,058

12 Pension commitments

The charity runs a Stakeholder Pension with Legal & General and a workplace pension with NEST. The assets of the scheme are held separately from those of the charity in independently administered funds. The pension cost charge represents contributions payable by the group to the funds and amounted to £6,418 (2024 : £5,130).

At 31st March 2025 contributions amounting to £1,840 (2024 : £2,225) were payable to the fund and are included in creditors.

13 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

Total £ 2,919,851 67,806 (115,790) 2,871,867 677,269 84,881 (105,190) 656,960 2,214,907 2,242,580
Computers Motor vehicles £
£		 8,578
92,924		 -
24,780		 (7,380)
-		 1,198
117,704		 7,296
50,746		 399
20,046		 (6,896)
-		 799
70,792		 399
46,912		 1,282
42,178
Fixtures and fittings £ 303,099 43,026 (108,410) 237,715 198,522 53,934 (98,294) 154,162 83,553 104,576
Improvements to property £ 506,368 - - 506,368 420,705 10,502 - 431,207 75,161 85,662
Freehold land and buildings £ 2,008,882 - - 2,008,882 - - - - 2,008,882 2,008,882
Tangible fixed assets Cost or valuation At 1 April 2024 Additions Disposals At 31 March 2025 Depreciation and impairment At 1 April 2024 Depreciation charged in the year Eliminated in respect of disposals At 31 March 2025 Carrying amount At 31 March 2025 At 31 March 2024
14

TEEN CHALLENGE LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

14 Tangible fixed assets

(Continued)

During the year ended 31 march 2023 Drayton Hall (Norwich, Norfolk) was donated to the Charity by The Lind Trust.

As the land and building were donated then a valuation was undertaken by a firm of local surveyors, Roche Surveyors. Due to the specialised nature of the property, the fact that it will be used for drug and alcohol rehabilitation and that there are restrictive covenants on the property then the value has been obtained on the basis of the rateable value and alternative uses for the property.

As the property is being used in providing activities to the charity then the directors consider that their is no need to revalue the property each year.

15 Fixed asset investments

Cost or valuation
At 1 April 2024 & 31 March 2025
Carrying amount
At 31 March 2025
At 31 March 2024
Other investments comprise:
Notes
Investments in subsidiaries
24
16
Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income		 Other
investments
£
2
2
2
2025
2024
£
£
2
2
2025
2024
£
£
21,564
20,680
16,914
3,358
38,478
24,038

TEEN CHALLENGE LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

17
Creditors: amounts falling due within one year
Notes
Bank loans
19
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income
18
Creditors: amounts falling due after more than one year
Notes
Bank loans
19
19
Loans and overdrafts
Bank loans
Payable within one year
Payable after one year
Amounts included above which fall due after five years:
Payable by instalments		 2025
£
71,989
6,104
21,106
4,251
22,744
126,194
2025
£
431,367
2025
£
503,356
71,989
431,367
85,404		 2024
£
59,241
5,956
49,320
6,101
12,533
133,151
2024
£
516,104
2024
£
575,345
59,241
516,104
189,396

A term loan from Barclays of £950,000 was drawn in August 2015. The long is secured by legal charges on Wilkerson House, the property at the rear of Wilkerson House and Unit 1 at Wilkerson House, together with a debenture dated 4 April 2007.

Interest is repayable at a rate equal to the aggregate of SONIA (Sterling Overnight Index Average) and the bank's margin of 3.110% per annum. Repayments of the loan capital are payable over 112 monthly instalments following. Capital repayment of the loan commenced during the year ended 31 March 2017. The loan is fully repayable in 2030.

TEEN CHALLENGE LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

20 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

Drayton Hall - Donated property
Minibus
Previous year:
Drayton Hall - Donated property
Ministry Bus		 At 1 April
2024
Incoming
resources
Resources
expended
£
£
£
500,000
-
-
26,000
(1,220)
500,000
26,000
(1,220)
At 1 April
2023
Incoming
resources
Resources
expended
£
£
£
500,000
-
-
47,665
-
-
547,665
-
-		 Transfers
At 31 March
2025
£
£
-
500,000
(24,780)
-
(24,780)
500,000
Transfers
At 31 March
2024
£
£
500,000
(47,665)
-
(47,665)
500,000

In the year ended 31 March 2023 The Lind Trust donated Drayton Hall to the Charity. As Teen Challenge needs permission from The Lind Trust to dispose of the property, the property has been left in the restricted fund as there is a continuing restriction to use on the property.

21 Analysis of net assets between funds

Unrestricted
Restricted
funds
funds
2025
2025
£
£
At 31 March 2025:
Tangible assets
1,714,907
500,000
Investments
2
-
Current assets/(liabilities)
140,011
-
Long term liabilities
(431,367)
-
1,423,552
500,000		 Total
2025
£
2,214,907
2
140,010
(431,367)
1,923,552

TEEN CHALLENGE LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

21 Analysis of net assets between funds

(Continued)

Unrestricted
Restricted
funds
funds
2024
2024
£
£
At 31 March 2024:
Tangible assets
1,742,580
500,000
Investments
2
-
Current assets/(liabilities)
153,258
-
Long term liabilities
(516,104)
-
1,379,736
500,000		 Total
2024
£
2,242,580
2
153,258
(516,104
1,879,736

22 Operating lease commitments

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

Within one year
Between two and five years
In over five years		 2025
£
18,059
71,430
83,600
173,089		 2024
£
1,259
1,889
-
3,148

23 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel was as follows:

2025 2024
£ £
Total key management personnel remuneration 51,098 50,058

TEEN CHALLENGE LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

23 Related party transactions

(Continued)

Transactions with related parties

The Chief Executive is a Trustee of the Exit Foundation Charity. During the year the charity entered into the following transactions with this charity:

The Chief Executive is a Trustee of the TCL Reuse Charity. Teen Challenge leases a property to TLC Reuse under a formal commercial lease. During the year ended 31 March 2025, rent of £60,000 (2024: £60,000) was charged to Teen Challenge. There was no rent outstanding at the year end (2024: £NIL). The lease was entered into on normal commercial terms and at a market rental value. No other benefits were provided to, or received from, TCL Reuse during the year. There is also a interest free loan due from TCL-Re use of £15,000 (2024 : £15,000). This amount has been included under debtors - note 16.

The Chief Executive is a Trustee of the Centre for Excellence in Education and Training. During the year ended 31 March 2025 rent of £1,200 (2024 : £800) was received for room hire. No rent was outstanding at the year end (2024 : £NIL).

During the year some of the church organisations that the Trustees are involved with gave donations totalling £29,200 (2024 : £56,030).

TEEN CHALLENGE LONDON

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

24 Subsidiaries

Details of the charity's subsidiaries at 31 March 2025 are as follows:

Name of undertaking
Registered		 Nature of business Class of
% Held		 Class of
% Held		 Class of
% Held
office shares held
**Direct **		 Indirect
TC Landscapes And Group
United Kingdom		 Landscaping & Ground
Ordinary
2.00
Maintenance Ltd Maintenance Shares
TC Landscapes and Group Maintenance Ltd was dormant during the current and previous financial year.
25 Cash generated from operations 2025 2024
£ £
Surplus for the year 43,816 140,069
Adjustments for:
Investment income recognised in statement of financial activities (130,044) (103,109)
Depreciation and impairment of tangible fixed assets 84,881 83,258
Movements in working capital:
(Increase)/decrease in debtors (13,942) 120,496
(Decrease) in creditors (19,704) (23,934)
Cash (absorbed by)/generated from operations (34,993) 216,780
26 Analysis of changes in net (debt)/funds
At 1 April 2024 Cash flowsAt 31 March 2025
£ £ £
Cash at bank and in hand 262,371 (34,645) 227,726
Loans falling due within one year (59,241) (12,748) (71,989)
Loans falling due after more than one year (516,104) 84,737 (431,367)
(312,974) 37,344 (275,630)

27 Non-audit services provided by auditor

In common with many businesses of our size and nature we use our auditor to assist with the preparation of the financial statements.