Registration No. 03484661 (England and Wales) Charity No. 1071058 CHILDREN'S LINKS (a company limited by guarantee) TRUSTEES, REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 *AEFAHX68• 1411112025 COMPANIES HOUSE A13
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CHILDREN'S LINKS CONTENTS Page Reference and administrative details Trustees, report Auditor's report 8-10 Consolidated Statement of Financial Activities Consolidated Balance Sheet 12 Charitable Company Balance Sheet 13 Consolidated Slalement of Cash Flows 14 Notes to the financial statements 15-31
CHILDREN'S LINKS REFERENCE AND ADMINISTRATIVE DETAILS CHARITY REGISTRATION NUMBER 1071058 COMPANY REGISTRATION NUMBER 03484661 TRUSTEES H Kucharczyk-chair (appointed 10.01.2025) J Wainwright- Vicewchair R Croft A Wright J Firth-8rown K Ruane V Lofthouse (resigned 30.7.2025) CHIEF EXECUTIVE OFFICER R Aylmer PRINCIPAL I REGISTERED OFFICE 7 Bull Ring HomGa5tle LN9 5HX INDEPENDENT AUDITORS Xeinadin Audit Limited Station Street Bingham Nottinghamshire NG13 8AQ BANKERS Sanlander UK plc Bridle Road Bootle Merseyside L30 4GB SOLICITORS 8rowne Jacobson LLP Mowbray House Castle Meadow Road Nottingham NG2 1BJ
CHILDREN'S LINKS TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2025 The Trustees present their report and the financial statements for the year ended 31 March 2025. ChaIS Introduction l am delighted to introduce this year's Children's Links Trustee Report. The work that Children's Links does in supporting children and families through challenging limes, helping parents build their skills, and striving to improve oulcomes for Ihose who need it most makes a real difference to the lives of children and families. It is a privilege to work with. challenge. and support such a dedicated team as they continue to provide much-need8d Sel¢eS. This year, the sector has continued to face challenges, with funding pressures and increasing demand as the cost of living continues to affect families. Despite this. Children's Links has had another positive year, expanding our Childcare provision. strengthened our financial position. and continued to invest in our staff and volunteers. I have every confidence that our skilled and committed staff will continue to dedicate themselves to supporting children and families. I look forward lo working alongside them and our partners as we continue this important joumey together. Thank you lo everyone-staff, volunteers, trustees, partners, and supporters-who make our work possible. Helena Kucharczyk Chair ofTrustees How we are run Children's Links is a registered charity and company limited by guarantee, established in 1997. Our mission is to improve children's lives by supporting their development, confidence, and wellbeing. The Board of Trustees is responsible for the overall direction and oversight of the charity, ensuring that we deliver public benefit and comply with all legal and regulatory requirements. This report covers the year ended 31 March 2025 and sets out our structure. governance, and management arrangements. 11 also explains our aims. activities. achievements, and financial performance for the year. Structure Governance and M na Children's Links is a registered charity and company limited by guarantee. established on 1 January 1997. The Board of Trustees sets the charity's Strategic direction and oversees its activities. Day-to4ay management is delegaled to the Chief Execulive and senior management team. Volunteers play a vital role in our delivery model. We recruit, train, and support volunteers to ensure they can contribute safely and effectively across our services. All volunteers receive appropriate training, coaching, and opportunities to develop their skills. The charity's governing document is its memorandum of association. In the event of winding up, eaGh member is required to contribute up lo £10. Trustee recrultment and induction Trustees are recruited through an open process to ensure a suitable mix of skills and local represenlalion. All trustees receive a full induction and ongoing training. The Board regularly reviews its effectiveness and conducts an annual skills audil to identify any gaps.
CHILDREN'S LINKS TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2025 Aims and ob'ectives Our Pu0$e Children's Links aims to improve children's lives. We work to help children reach their polential, build confidence and resilience. and make a lasting drfference. The Charity's purposes, as set out in ils governing document, is to benefit the public by- Promoting the care and education of children, young people, families. and communities, This includes providin9 facilities for recreation, care, education, and other leisure activities, all aimed at improving thelr quality of life. Advancing the education and training of people who provide care, educational, and recreational services. Carrying out research into all aspects of care, education, and recreation for children, young people, families, and communities, and sharing the useful results of this research. These objeclives guide all our activities and ensure that our work delivers clear public benefit. Each year, we design our services and projects to reflect these aims and respond lo the needs of children. famililies, and communities. Public benefit The Board of Trustees has considered and had regard to the Charity Commission's guidance on public benefit when reviewing ihe charity's aims and aclivilies. Children's Links. work focuses on promoting the care, education, and training of children. young people, and adults, which directly benefits the public. The Irustees are satisfied that the charily's aims. objectives, and aclivities provide clear public benefit. Actlvltles. a¢hiev•m•nts, andperformance Children's Links is guided by four slralegic goals, which shape our work and ensure we deliver lasting benefit for children, families, and communities.. 1. Deliver high quality seNices that meet the needs ofchildren, young peop18, and adults. 2. Have a skilled workforce thal embodies our values. 3. Make best use of our resources to ensure long-t8rm sustainability. 4. Optimise partnership opportunities. Our activities are aligned with these goals, and our achievements and performance outcomes demonstrate that we have, for the most part, met them. This report provides a summary of our activities and outcomes against our stralegic goals. For in-depth stories, data, and case sludies, please refer lo our 2025 Impacl Report.
CHILDREN'S LINKS TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2025 Summary of activities The year ending 31 March 2025 was a year of growth and development in which we undertook a wide range of activities, expanded our work with separated families, and established four new childcare settings. We worked hard lo meet the increasing needs of children and families, whilst ensuring that we had clear plans to improve our financial stability. Supportlng separated families We delivered the Improving Child and Family Arrangements {ICFA) service and operaled contact centres in the East Midlands and Easl, enabling children lo spend lime with their parents, (Goals 1. 4) Pmvldlng early years and out-of-school chlldcare We supported the care and wellbeing of children in out-of-school settings and nurseries in Lincolnshire, North Lincolnshire, and Hampshire. (Goals 1, 3) Supporting children with complex needs We delivered holiday respite care in North Lincolnshire for children with complex needs. {Goal 1) Community-basedplay and learning We ran the Lincoln Toy Library, provided play services, and advanced the care and education of families and ommunilies in Lincolnshire. (Goals 1, 4) Buildlng skllls and conlldence We increased the numeracy skills of parents and grandparents and supported professionals and volunteers across the region. (Goals 2, 4) Staff development We supported employees, personal development through informal and accredited training, including role.specific qualifications and degrees. (Goal 2> Partnership and sector engagement We engaged with local, regional, and sector neIorkS lo increase the sector's ability to deliver social welfare, produced an Impact Report, and developed partnership funding bids lo strengthen our work. (Goal 4) Financial stability We had clear financial goals which were closely monitored to ensure that Children's Links is on a firm financial footing after several challenging years, including redefining the purpose and future activity of our subsidiary, Linking Up Limited {LUL). (Goal 3)
CHILDREN'S LINKS TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2025 Achievements andperfomiance During the year we have worked directly with.. 3,032 children (target 3,018) 1,213 parents (target 1,006) 263 leamers (target 246), 220 professionals (target 234) 22 volunteers The numb8r of children supported increased as we expanded our childcare and family support work. Growth In our work with separated families also led to more parents being supported. Our learner numbers exceeded target due to strong uptake of outreach delivery. However, reduced funding in the voluntary sector led to slightly fewer professionals supported than targeted, reflecting wider sector challenges. We continue lo seek new funding sources and support for professionals to address these issues. To deliver high quality services that meet the needs of children, young people, and adults. we secured funding through grants, contracts, and fundraising., took over four childcare settings,. expanded contact centre provision-, developed new community training courses and improved our offer for children with special educational needs and disabilities. We engaged wilh wider communrty developments across Lincolnshire to ensure children and families have a voice in shaping services which meet their needs and enhanced our internal processes and quality assurance, working with teams lo improve qualily and engaging with our accrediting bodies, including Ofsted, NACCC and Matrix. To build a skilled workforce that embodies our values, we improved recruitment accessibility and worked with an HR Consultant to further our policies and procedures and strengthened supervision to include greater accountability and identity of individual support needs. We priorltlsed training, development. and slaff wellbeing, including training 14 slaff In Mental Health First Aid, and introduced a lone working app lo ensure staff safely. We engaged wilh slaff through sunieys and monthly newsletters, introduced a staff recognilion platform, and held our annual staff awards ceremony. Our volunteers played a significant role in the delivery of our contact cenlres, supporting childcare settings, fundraising, and governance. We ensure volunteers receive appropriate training and support as well as opportunity to develop their skills and knowledge. Their contribution is significant and highly valued. To ensure best use of our resources to ensure long term sustainability, we moved our head office, upgraded our finance system, adopted cloud-based solutions, opened a higher interest bank account, and improved our reserves. To optimise partnership opportunities, we sent partner newsletters, produced an Impact Report, engaged with local, regional and sector networks, and developed partnership funding bids. These achievements reflect our commitment to improving outcomes for children, families, and communities. W8 will build on this progress in th8 coming year by continuing to expand our sernices. strengthen our workforce, and develop nèw partnerships.
CHILDREN'S LINKS TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2025 Financialreview Income. expenditure. and reserves After several challenging years, we achieved a surplus in 2024-25. This has enabled the charily to hold reserves above our minimum requirement of three months, central running costs which wlll ensure financial slability and conllnuily of services in the event of unforeseen circumstances. At the end of March 2025, reserves stood al £317,265. Our main source of income is our childcare settings and contracts and is supplemented by grants and fundraising. We are reviewing our strategy lo decide how best to use any surplus funds lo support the charity's aims. The Board has started investing in refurbishing our childcare settings and has agreed a plan for further improvements. Our subsidiary. Linking Up Limited (LUL), saw a planned reduction in childcare voucher income. We are seeking new business opportunities to replace Ihis income and will continue to review LUL'S activities and viability to manage any associated risks. Fundraising We are registered with the Fundraising Regulator and work in a way that is compliant with the Code of Fundraising Practice. Any internal fundraising is carried out in line with our fundraising policy and additionally vuln8rab18 people are covered by our safeguarding policies. Volunteers continue to play a key role in supporting our fundraising activities. Where we benefit from exlernal platforms, they are registered with the Lotteries Council and Ihe Gambling Commission. No fundraising complaints were received during the year. Rlsks and Uncertaintles We recognise that there are a number of key risks and uncertainties that will not just affect Children's Links but thal are present in the third sector as a whole including; economic uncertainly, the ongoing cost of living crisis, families with increasingly complex needs, scarcity of qualified staff within the sector, upcoming and planned national changes within the Early Years and Family Law sectors and contract renewals. However, our strategy review and planning indicate that the charily can continue lo generate a reasonable trading surplus while meeting our charitable objectives, based on realistic budgets, effective systems and processes, strong partnerships and neorkS, and robusl action plans with senior management and trustee oversighl. Statement olgolng concem Whilst recognising the dlfficullies due to the wider economic situation. the board consider that the charity is a going concern. This is based on the assumptions and actions of the last 12 months, as well as the forecast over the next 12 months. The board has satisfied themselves that the charitable company's assets are available and adequate lo fulfil ils obligalions and will continue to monilor the financial position and risks on an ongoing basis.
CHILDREN'S LINKS TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2025 Plans for th• luture Looking ahead, our priorities lor the next year are: Continue to develop. improve, and expand our existing services. with a focus on supporting the wellbeing of children and families. Focus on recruiting and retaining a skilled workforce that embodies our values. Investigate ways to develop our income streams and making best use of our resources to ensure long term sustainability, including improving and developing our communication, engagement, and marketing strategies. Continue to work with partners and communities lo ensure that we can deliver quality services that deliver positive outcomes. Trustee responsibilities The Children's Links Board of Trustees (who are also directors of Children's Links Limited for the purposes 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 board to prepare financial slalements for each financial year. Under company law the board musl not approve the financial statements unless they are satisfied that they give a true and fair view of the slale of affairs of the charitable company and the group and of its incoming resources and application of resources, including ils income and expenditure, for that period. In preparing those h'nancial statements the board are required to.. Selecl suitable accounting policies and apply them consistently. Observe the methods and prlnciples in the Charilies Statement of Recommended Practice {SORP), Make judgements and estimates that are reasonable and prudent. Stale whether applicable UK Accounting Standards have been followed, subject lo any material departures disclosed in the financial slatemenls. Prepare the financial stalemenls on the going concern basis unless it is inapproprlate lo presume that the charity will continue in operation. The board are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and the group's transactions and disclose with reasonable accuracy at any lime the financial position of the charitable company and the group and enable them lo ensure Ihal 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. Provision of information to auditors Each of the persons who are Trustees at the time when this Trustees, report is approved. has confirmed that.. So far as that Trustee is aware, there is no audit informalion of which Ihe Group's auditor is unaware, That they have taken all the steps that ought to have been taken as a Truslee in order to be aware of any information needed by the Group's auditor in connection with preparing its report and to establish that Ihe Group's auditor is aware of that information. 12-11-2025 This report was approved by the Board on...................... ... .... .and signed on it's behalf by H Kucharczyk Chair
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHILDREN'S LINKS Opinion We have audited the financial statements of Children's Links for the year ended 31 March 2025 which Comprise the Consolidated Statement of Financial Activities (incorporating an Income and Expenditure Account), the Consolidated and Charity Balance Sheets, the Consolidated Statement of Cash Flows and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and Uniled Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 "The Financial Reporting Slandard applicable in the UK and Republic of Ireland". In our opinion the financial stslements.. give a true and fair view of the stale of the Group's and the parent charitable company's affairs as at 31 March 2025, 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>I and applicable law. Our responsibilities under those standards are further described in the Audilorfs responsibililies for the audit of the financial slatements section of our report. We are independent of the charilable company in accordance with the ethical requiremenls that are relevant lo our audit of the financial statements in the UK. including the FRC'S Ethical Standard, and the provisions available for small entities, in respect of the fact we provide non-audit services in the preparation of these financial stalemenls. and we have fulfilled our other ethical responsibilities in accordance with Ihese fequirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to going concern In auditing the financial slalements, we have concluded that the trustee's use of the going conGem basis of accounting in the preparation of Ihe financial statements is appropriale. Based on work we have performed, we have not identified any material uncertainties relating to event$ or conditions that, individually or collectively, may cast significant doubl on the group's and the parent charitable company's ability to continue as a going Goncern for a period of at least twelve months from when the financial statements are aulhorised 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 Trustees, report. The Trustees are responsible for this other Information. Our opinion of the financial statements does not cover the other information and except to the extent othemise explicitly stated in our report we do not express any form ofassurance conclusion thereon. In connection with our audit ofthe financial statements, our responsibility is lo 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 audit or otheMise appears to be materially misstated. If we identify such malerial inconsistencies or apparent material misslatemenls. we are required to determine whether there is a material misstalemenl in the financial statements or a material misstatement of the other information. If, based on the work we have performed. we conclude that the is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHILDREN'S LINKS Opinions on other matters prescribed by the Companies Acl 2006 In our opinion, based on the work undertaken in the course of the audit: the infomiation given in the Trustees, report, which includes tt)e DireGtors' report and the Strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements., and the Strategic report and the Directors, report included wilhin the Trustees. report have been prepared in accordance with the applicable legal requirements. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you rf, in our opinion.. Ihe parent charitable company has not kept adequate and sufficient accounting records, or relums adequate for our audit have not been received from branches not visited by us., or the parent charitable company financial statements are not in agreement with the accounts'ng records and returns; certain disclosures oftruslees, remuneration specified by law are not made., or we have not received all the information and explanalions we require for our audit. the Trustees were not entitled to prepare the financial statements in accordance with the small Companies regime and lake advantage of the small companies exemption in preparing the Directors. report and take advantage of the small companies exemption from Ihe requirement to prepare a strategic report. Responsibilities of Trustees As explained more fully in the Trustees, responsibilities statement set out in the Trust88s' report, the Trustees {who are also the directors ofthe charitable company for the purposes ofcompany law) are responsible for the preparation of the financial slalements and for being satisfied that they give a true and fair view, and for such internal control as the Trustee5 determine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. Audilorfs responsibilities for the audit of the financlal 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 auditorfs report that includes our opinion. Reasonable assurance is a high level of a5suran¢e, bul it is not a guarantee that an audit conducted in accordance with ISAS {UK) will always delecl a material misstalemenl when il exists. Misslatemenls can arise from fraud or error and are considered material if, Sndividually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basls of these financial statements. Irregularities. includlng fraud. are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above. lo detecl material misstatements in respect of irregularilies, including fraud. The extent to which our procedures are capable of detecting irregularities. including fraud is detailed below.. FIrsY, our assessment of Ihe risk applicable to the entity's financial statements from material misstatements, including fraud. is low. Consequently, the risks identified are primarily concemed with dominant influence by managemenl, income recognition and classification as well as adequacy and completeness of the disclosure for relaled parties. In response, we have.. Reviewed minutes of meetings of management and those charged with governance; Tested journal entries and other adjustments for appropriateness, evaluating the rationale behind transactions outside the normal course of activities,. Vouched a sample of grants receivable to source documentation checking income recognition criteria as well as any reslrictions for appropriate fund ¢lassificalion- Oblained related party grid responses from connected parties and reviewed transactions during the year for evidence of additional. unidentified related parties.
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHILDREN'S LINKS Auditorfs responsibilities for the audit of the financial statements (continued) Whilst the procedures listed aid us in detecting irregularities, there exists the inherent difficulty in detecting irregularities, particularly those related to fraud. However, we believe the above risks lo be the particular areas most susceptible to material misstatement. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website al www.frc.org.uklauditorsresponsibililies. This description forms part of our auditor's report. Use of our report This report is made solely to Ihe 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 slate to the charitable company's members those matters we are required to slate to them in an audilor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone olher 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. Jordan Caln ACA (Senlor Slatutory Audltorj for and on behalf of XEINAOIN AUDIT LIMITED Chartered Accountants Statutory Auditors Cabourn House Station Street Bingham Notbnghamshire NG13 8AQ Date.. 13 November 2025 10
CHILDREN'S LINKS CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2025 2025 Total £'ooo 2024 Total £'ooo Notes Unrestricted £'ooo Restricted £'ooo INCOME Donations 61 61 Charitable activities 3,194 170 3,364 1.532 Other trading activities 79 Other income 48 Investment income 12 12 Total Income 3,331 170 3,501 1,669 EXPENDITURE Charilable activities { 3,143) 126) 3,269) 1,697> Other trading activities 58) 58) 81) Total expendlture ( 3.201) 1261 ( 3,327) ( 1,778) Net incomel(expenditure) 130 174 109) Transfers between funds Net movement in funds 130 174 109) Reconciliation of funds: Total funds brought forward 19b 13 18 127 Total funds Carrled forward 19a 135 57 192 18 All amounls relate lo Continuing activities of the group. The Statement of Financial Activities includes all gains and losses recognised in the year, 11
CHILDREN'S LINKS REGISTERED COMPANYNUMBER." 03484661 CONSOLIDATED BALANCE SHEET AS A T31 MARCH 2025 Noles 2025 £'ooo 2024 £'ooo FIXED ASSETS Tangible fixed assets 14a 17 TOTAL FIXED ASSETS 17 CURRENT ASSETS Debtors Cash at bank and in hand 16 53 452 126 137 TOTAL CURRENT ASSETS 505 263 LIABILITIES Creditors.. amounts falling du8 within one year 17 330) 253) NET CURRENT ASSETS 175 10 Credltors.. arnounts falling due in over one year TOTAL NET ASSETS 192 18 FUNDS OF THE CHARITY: Unrestricted funds Designated funds Restricted funds 19 19 19 57 78 57 34) 39 13 TOTAL FUNDS 192 18 The trustees have prepared group accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Acl 2011. These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies, regime. Th8 attached notes on pages 15 to 31 form part of these financial statements. I8109/2025 The financial statements were approved by the Board of Trustees on. .and signed on their behalf by.. H Ktscharczyk Chair 12
CHILDREN'S LINKS REGISTERED COMPANY NUMBER.. 03484661 COMPANY BALANCE SHEET AS A T31 MARCH 2025 Notes 2025 £'ooo 2024 £'ooo FIXED ASSETS Tangible fixed assets 14b 17 TOTAL FIXED ASSETS 17 CURRENT ASSETS Debtors Cash at bank and in hand 16 51 406 122 81 TOTAL CURRENT ASSETS 457 203 LIABILITIES Creditors- amounts falling due wilhin one year 17 2501 155) NET CURRENT ASSETS 207 Creditors.. amounts falling due in over one year TOTAL ASSETS 224 56 FUNDS OF THE CHARITY: Unrestricted funds Designated funds Restricted funds 19 19 19 89 78 57 39 13 TOTAL FUNDS 224 56 These accounts have been prepared in accordance with the provisions applicable lo companies subject lo the small companies, regime. The attached notes on pages 15 to 31 form part of these financial statements. 1810912025 The financial statements were approved by the Board of Tfustees on......-......-............... and signed on their b8half by.. H Kucharczyk Chair 13
CHILDREN'S LINKS REGISTERED COMPANYNUMBER.. 03484661 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 Not•s 2025 £'ooo 2024 £'ooo Cash Flows froml(used in) Operating Activities Net cash provided byllused in) operating activities 21 329 113) Cash Flows usod In Investing Actlvltles Purchase of property, plant and equipment 14) Change In eash and cash equlvalents In the reporting period 315 113) Cash and cash equivalents at the beglnnlng of Ihe reporting period 137 250 Cash and cash equlvalents at the end of Ihe reporting period 452 137 14
CHILDREN'S LINKS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accountlng policies The principal accounling policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows- Basis of preparation and consolidation The financial statements have been prepared in accordance with Accounting and Reporting by Charilies: 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) (issued in October 2019) (Charities SORP {FRS 102)). the Financial Reporting Slandard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Th8 financial statements are prepared on a going concern basis and are presented in st8rling, which is the functional currency of the Charity. The Statement of Financial Aclivities (SOFA) and Balance Sheet consolidate the financial statements of the company and its subsidiary undertaking. The results of the subsidiary are ¢onsolidat8d on a line by line basis. No separate SOFA has been presented for the Charity alone as pemiitted by section 408 of the Companies Act 2006. The Charity meets the definition of a public benefit enlily under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise slated in the relevant accounting policy noles. b) Going concern The Children's Links Board consider that the organisalion is a going concern. This is based on the following assumptions and actions that have been made in the last twelve months as well as the forecast and new business opportunilies over the next e1ve months. The charitable group has a surplus of £174,000 in the year ended 31 March 2025 and a deficit of £109,000 for the comparative year. The Trustee 8oard has satisfied themselves that the charitable company's assets are available and adequate to fulfil its obligations. The main sources of funding are-. Local Authority Contracts Cenlral Government European funds, including European Social Fund Grant making trusts Childcare Fees from parents Charitable donations Further delails regarding the future success of Ihe organisation are given in the Truslee's report. L•gal status of the Charity There is no share capital as the company is limited by guarantee. Each member has guaranteed an amount, not exceeding £10, lowards the company's liabilities in the event of a winding up. provided that a member has not ceased to be a member one year prior to any winding up order. 15
CHILDREN'S LINKS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies (Continued) Fund accounting Unrestricted funds are available for use al the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. Reslricled funds are funds which are lo be used in accordance with specific reslriclions imposed by donors or which have been raised by the Charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial siatements. Income Income is recognised when the Charity has entitlement to the funds, any performance conditions attached to the items of income have been met. it is probable that the income will be received and the amount can be measured reliably. Volunlary income donations are accounted for as received, sponsorship income represents amounts receivable. Gifts in kind lo the Charity are included at the value specified by the donor or, if this is not available, at what the estimated cost to the Charity would have been. Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, il can be measured reliably and the Charity has Control over the item. Fair value is determined on the basis of the value of the gift to the Charity. For example the amount the Charity would be willing lo pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure. Grants - grants are included as incoming resources when these are receivedlreceivable. Government grants are recognised when the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measur8d reliably. Furthermore, any and all conditions attached lo the grant will need to be mel. Income from trading activitles Includes income earned from actlvllles to raise funds for th8 Charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred. Income from donated goods is recognised on sale of those goods. Expenditure Expenditure is recognised once there is a legal or constructive obligation lo make a payment to a third party. it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is a¢Unted for on an accruals basis. Where costs cannot be directly attributed to particular headings they have been allocated to activities on basis consistent with use of the resources. 16
CHILDREN'S LINKS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 A¢countlng policies (¢ontlnued) g) Tangible fixed assets and depreciation Tangible fixed assets are slated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Depreciation is provided on all tangible fixed assets, al rates calculated lo write off the cost, less estimated residual value, of each asset on a systematic basis over its exp8Cted useful life as follows: Computer Furniture and equipment 20 % straight line & 330/0 Straight line 200/0 Straight line Assets are reviewed for any indications of Impaimient at each balance sheet date. h) Debtors Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued al the amount prepaid net of any trade discounts due. Accrued income and tax recoverable are included at the best estimate of the amounts receivable at the balance sheet date. Cash at bank and In hand Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three monlhs or less from the date of acquisition or opening of the deposit or similar account. J) Creditors Creditors are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds lo a third party and the amount due to settle the obligation Can ba measured or estimalgd reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due. Concessionary loans received at below market rates are received in order to further the charitable objectives of the organisation and are therefore included at the amount received and are not discounted. Financial instruments The Charity only has financial assels and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised al transaction value and subsequently measured al their settlement value. Pensions Employees of the Charity are entitled lo join a defined contribution pension scheme. The Charity contribution is restricted to the contributions disclosed in note 11. m) Operating leases Operating leases are reco9nised over the period of which the lease falls due. 17
CHILDREN'S LINKS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Donations 2025 £'ooo 2024 £'ooo Donations 61 61 All donations received in 2025 and 2024 relate to unrestricted funds. Included above is £56,000 received from 8urton Play. The sum was transferred as Children's Links has taken over the running of the nursery. Income from charitable activities 2025 £'ooo 2024 £'ooo Childcare fees Training fees Grants (see below) Fundraising income Contact centre fees Other fees 2,562 905 611 491 126 62 76 51 3,364 1,532 Income from charilable aclivilies was £3,364,000 12024-. £1,532,000) of which £170,000 (2024: £108,000) was attribulable to restricted and £3.194,00012024: £1,424.000} was attributable lo unrestricted funds. Grants 2025 £'ooo 2024 £'ooo Local authority income CYPVSF NACCC ICFA The National Lottery Community Fund- RC Midlands Region Lincoln City Foundation Theddlethorpe GDF Communty Employer Incentive Autumn 2024 Other grants and awards 53 20 22 340 39 20 18 297 42 25 14 29 40 35 491 18
CHILDREN'S LINKS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Other tradlng actlvllles The Charity has a wholly owned trading subsidiary, Linking Up Limited, a Company incorporated and registered in England and Wales (Company number: 05830401). The principal activity of the Company is the provision of a childcare voucher scheme. The income and expenditure attributable lo the Company are as follows.. 2025 £'ooo 2024 £'ooo Turnover Payment to childcare settings Wages, salaries and recruitment AdminIstlIVe expenses Accountancy fees 78 ( 75) 3> 11 2) ( 55) 2) 1) Net Incomel{expendilure} for the year 3) The Charity also operated a shop in Horncastle which is now closed and sold donated goods.. 2025 £'ooo 2024 £'ooo Shop takings All trading income received in 2025 and 2024 relates to unrestricted funds. Oth•r Income 2025 £'ooo 2024 £'ooo Insurance claim Coronavirusllockdown support grants Reimbursed early termination charges The insurance Claim was for flood damages. The coronavirus grants are household Covid support grants for the nursery settings. Early termination charges arose on changing the telecoms provider. These were reimbursed in full by the provider. Investmenl Income All investment income has arisen from monies held in interest bearing accounts. 19
CHILDREN'S LINKS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Analysis of expenditure on ¢harltabl¢ a¢tlvltle8 Analysis of expenditure on Charitable activities- current year Direct costs £'ooo Support costs £'ooo 2025 costs £'ooo Charitable activities: Care and education of young people 2.855 414 3,269 2,855 414 3,269 7b Analysls of expendlture on charltable actlvltle8- prlor year Dlrecl costs £'ooo Support costs £'ooo 2024 Costs £'ooo Charllable actlvltle$: Care and education of young people 1,382 315 1,697 1,382 315 1,697 Analysis of support costs 2025 £'ooo 2024 £'ooo Staff travel and subsistence Slaff training Stationery and postage Premises costs and equipment ICT Costs Insurance Legal and professional Wages and salaries Recruitment and other staff costs Pension costs Governance costs Bad debts 33 12 23 68 37 18 20 204 32 10 14 22 191 15 10 414 315 Analysis of governance ¢ost$ 2025 £'ooo 2024 £'ooo Audit fees Other accounlancy services Cost of Trustees, meetings 15 10 20
CHILDREN'S LINKS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 10 Analysls of staff costs and key management personnel 2025 £'ooo 2024 £'ooo Wages and salaries Social security Costs Pension 2,329 145 47 1,088 2,521 Th8 Charity Trustees were not paid and did not recelve any benefits from th8 Charity or its subsidiary In th8 year 2025 (2024.. £nill. Ouring the year, no Trustees were reimbursed expenses12024: £nil). The key management personnel of the Charity and the Group comprise the Trustees, the Chief Executive and Ihe Senior Management Team. The lotal employee benefits of the key management personnel of the Charity were £120,251 (2024.. £128,513}. No employee (2024: nil} had employee benefits in excess of£60.000. The average monthly head count was as follows: 2025 Number 2024 Number Operational Adminislralion 153 10 10 163 98 11 P•nslon costs The Charity operates defined contribution pension schemes. The assets of these schemes are held separately from those of the charitable company in independently administered funds. Contributions payable by Children's Links amounted to £47,000 (2024-. £20,000). Amounts payable of £9,000 (2024.. £nil) was due to the pension funds at the balance sheet date. 21
CHILDREN'S LINKS NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 12 Net incoming resources 2025 £'ooo 2024 £'ooo Nel incoming resources is slaled after charging: Depreciation of charitable assets owned by group Operating lease charges Auditor's remuneration.. for audit services - for other a¢¢ounlancy services 65 13 Taxatlon The company is a registered charity and as such is exempt from taxatlon on Ils income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to Ihe extent that these are applied for charitable purposes. 22
CHILDREN'S LINKS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 14 Tanglbla flxed assets 14a Tangible fixed assets- group Computers Furniture & Equipment £'ooo Tolal £'ooo £'ooo Cost: At 1 April 2024 Additions Disposals 95 43 14 138 14 13> 13) At 31 March 2025 82 57 139 Depreclatlon: At 1 April 2024 Charge for the year Eliminated on disposal 88 42 130 13) 13) Al 31 March 2025 79 43 122 Net book value: Al 1 April 2024 At 31 March 2025 14 17 14b Tangible fixod assets - charity Computers Furnllurè & Equlpment £'ooo Total £'ooo £'ooo Cost: Al 1 April 2024 Additions Disposals 89 43 14 132 14 13> 13> At 31 March 2025 78 57 133 Depreclatlon: At 1 April 2024 Charge for the year Eliminated on disposal 82 42 124 13) 13) At 31 March 2025 73 43 116 Net book value: At 1 April 2024 Al 31 March 2025 14 17 23
CHILDREN'S LINKS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 15 Investment in trading subsidiary The Charity holds 1,000 shares of£1 each in its wholly owned trading subsidiary Linking Up Ltd which is incorporated in the United Kingdom. The principal activity of the subsidiary is the provision of a childcare voucher scheme. These activities were considered lo be compatible wilh the aims and charitable obJe¢tives of Children's Links. A summary of the results of the subsidiary is shown below.. 2025 £'ooo 2024 £'ooo Profit and Loss Account Tumover Payment to childcare settings Wages, salaries and recruitment Administrative expenses Accountancy fees 78 ( 75) 3) 1) 2) { 55) 21 Net incomellexpenditure} for the year 3) Balance Sheet Curient assels Liabilities 47 79) 60 ( 98) Nel liabilities { 32) ( 38) 16 Debtors Due withln one year Group Company 2025 £'ooo 2024 £'ooo 2025 £'ooo 2024 £'ooo Trade debtors Other debtors Prepayments and accrued income 16 91 16 90 37 32 35 32 126 51 122 24
CHILDREN'S LINKS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 17 Creditors: amounts falling due within one year Group Company 2025 £'ooo 2024 £'ooo 2025 £'ooo 2024 £'o( Trade creditors Taxation and social security Other credrtors Accruals Deferred income 148 27 132 27 75 71 41 75 71 41 330 253 155 Deferred Income Deferred income comprises monies received in advance, primarily for programme deliv8ri8s and equipment purchases for which funding has been banked. Amount deferred in year is £71.000 {2024'. £64,000). All deferred income broughl forward was released during the year. 18 Leases Total future minimum lease payments under non<ancellable operating leases are as follows.. Land and Buildings 2025 2024 £'ooo £'ooo Other 2025 £'ooo 2024 £'ooo No later than one year Later than one year and not later than five years 42 25
CHILDREN'S LINKS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 19 Funds analysis 19a Funds analysis- current year Balance al 11412024 £'ooo 8alance at 311312025 £'ooo Income £'ooo Expendlture £'ooo Transfers £'ooo Unrestricted funds Children's Links 3,211 ( 3,132) 89 Linking Up Limited 38) 58) 32) Total unrestrlcted funds 34) 3,275 ( 3,190) 57 Deslgnated funds Damian fund Linking Up Limited lund Burton Pky 38 6> 32 45 11) Total deslgnated funds 39 11) 78 Total unrestrlcted fund8 3,331 ( 3,201) 135 Restrlcted funds Adrian Worsley lund CYPVSF NACCC The National Lottery Community Fund- RC Midlands region Homcaslle Wellbeing Fund Early Play and Toy Library Theddlethorpe GDF Communty Employer Incentive Autumn 2024 Armed Forces Covenant RAF Waddington 20 21 20) 21) 12 40 39> 13 16 18 29 15 14) 29) 25 1) 24 Total restrlcted funds 13 170 126) 57 Total funds 18 3,501 ( 3,3271 192 26
CHILDREN'S LINKS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 19b Funds analysis- prlor year Balance at 11412023 £'ooo Balance at 311312024 £'ooo Income £'ooo Expenditure £'ooo Transfers £'ooo Unrestricted funds Children's Links 151 1,483 { 1,592> 38> Linking Up Lirnited 35) 78 81) 38) Total unrestricted funds 116 1,561 ( 1,673) 38) 34) Deslgnated funds Damian fund Linking Up Limited fvnd 38 38 Total designated funds 38 39 Total unrestrlcted funds 117 1,561 ( 1,673) Restricted funds Adrian Worsley fund Blg Lottery and European CYPVSF NACCC The Nalional Lottery Community Fund- RC Midlands region AWA Play Scape AEB Level 2 Early Years Holiday Activities & Food IHAF) Programme RAF Nursery Equipment 5) 20} 18> 20 18 42 32) 7) 2) 12 16 16) 5) Total reslricled funds 10 108 105) 13 Total funds 127 1,669 ( 1,778> 18 27
CHILDREN'S LINKS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 1k Analysls of asso1s1{liabilitiesl between funds Tolal 2025 Unr•slrltt•d £'ooo £'ooo Total 2024 £'ooo Unre$trlct•d £'ooo Restricted £'ooo Restrieted £'ooo General fund: Intangible fixed assets Tangible fixed assets Current assets Creditors falling due within one year Creditors falling due in over one year 17 391 273) 17 114 $05 ( 57) ( 330) 186 189) 77 263 64) ( 253) 135 57 192 13 18 Designaled funds are included in Ihe unrestricted funds in the above analysis and are wholly held in cash. 19d Funds analysls-description of lunds Oeslgnated funds Damian fund This was established by a legacy left to Children's Links which is used to commemorale the life of a young man who was very active in the Lincolnshire comrnunily. The intere5l on the legacy is used to reward young people for their community endeavour. usually as part of the Children's Awards ceremony. Llnklng Up Llmiled fund This fund was established to support the existing and future Shfl0W requirements of the subsidiary, Linking Up Limited. Burton Play fund This fund was established following the transfer of cash and management of the Burton Play nursery in order to support the development of the nursery. 28
CHILDREN'S LINKS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 19d Funds analysis- description of funds (continued) Restricted funds Adrian Worsley fund This commemorates the life of a supporter of Children's Links and the interest on the fund is used to reward young people for their comrnunily endeavour. usually as part of the annual Children's Awards ceremony. Blg Lottery and European Soclal Fund Bulldlng Better Opportunltles Move Granl This grant provides a range of activities and interventions to economically inactive people to move towards and into employment. The project is delivered across the whole of Greater Lincolnshire. Big Lottery and European Social Fund Building Better Opportunities Engagemenl into Learning Grant This grant provides a range of activities and interventions to economically inactive people to move towards and into learning. The project is delivered across the whole of Greater Lincolnshire. CYPVSF (Children and Young People's Voluntary Sector Forum) This is funded by Lincolnshire County Council lo provide support for voluntary and community sector (VCS) organisalions working with children, young people and their famili8s in Lincolnshir8. NACCC (Natlonal Assoclatlon of Chlld Contact Cenlres) This funding has now replaced the Children and Family CourtAdvisory and Support Services funding and is to provide supported conlact centres in Gainsborough, Grantham, Lincoln, Skegness. Spalding, Notts & Derby. Retford and Peterborough. Blg Lottery and European Social Fund- Building Better Opportunities Building Connections Grant This funding is to tackle loneliness in the rural areas of East Lindsey by providing a campervan which travels lo villages to provide a focal point for people to meet. The Natlonal Lottery Communlty Fund- RC Midlands Region A National Lotlery Community Fund projecl that aims lo build a network across Lincolnshire lo develop the leadership skills of women working in the third sector. AWA Play Scape A National Lottery Awards for All funded project to deliver toy library outreach and provide fun play sessions for parents and young children. 29
CHILDREN'S LINKS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 19d Funds analysis- description of funds (continued} Restricted funds (continued) AEB Level 2 Early Years For the delivery of Level 2 Diploma for the Early Years practitioner. Holiday Activies & Food Programme (HAF) Delivery of free holiday provisions including healthy food and enriching activities for school aged children. Funded by Lincolnshire County Council. RAF- Nursery Equlpment Funds received from Ihe RAF to purchase necessary equipment and other items for RAF nursery settings in advance of them opening. Horncastle Wellbeing Fund For the delivery of early years soft play and Creative sessions. Early Play and Toy Llbrary Funding received to support the running ofthe Toy Library which is Irom The National Lottery Community Fund. Theddlethorpo GOF Communlty To provide safe spaces for women lo meet, make friendships, develop confidence and learn new skill in and around Theddlethorpe. Employer Incentive Autumn 2024 Funding received to support a trainee to complete Early Years Initial Teacher Training. Armed Forces Covenant RAF Waddlngton To provide specialist support at the nursery in order to provide better learning environments.
CHILDREN'S LINKS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 20 Related party transactions On the basis that this is a wholly owned Group and that consolidated financial statements have been prepared, Ihe Group has taken advantage of the exemption nol to disclose intra group transactions. There were no other related paty transactions. 21 Reconciliatlon of net expenditure to net cash flow from operating activStles 202S £'ooo 2024 £'ooo Net movement in funds (as per the slatement of Ilnancial activities} 174 109) Adjustmenls for: Depreciation of tangible fixed assets Loss on disposal of property, plant and equipment Decreasel{Increasel in debtors Increase in creditors 73 77 56) 43 Net cashflow froml(used inl operating activltSes 329 113) 22 Analysis of cash and cash equivalents 2025 £'ooo 2024 £'ooo Cash at bank and in hand 452 137 Tolal cash and cash •quivalenls 452 137 23 Nét debt reconclllatlon Net debt rèconclllatlon for Ihe Group 2025 At start of year Cashflows Other non- cash Changes At year end Cash at bank and in hand 137 315 452 Net debt reconciliation for the Charity 2024 At start of year Cashflows Other non- cash changes At year end Cash at bank and in hand 250 113) 137 31