Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
**Charity registration number 1072632 (England and Wales) Company registration number 03604980**
## **ADAPT (NORTH EAST)**
**ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025**
Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|A Bishop|
|---|---|
||M Briggs|
||G Clarke|
||L Hershon|
||P Maginn|
||M Ostler|
||A Stevenson|
||R E Theobalds|
|**Secretary**|E Prudhoe|
|**Charity number (England and Wales)**|1072632|
|**Company number**|03604980|
|**Registered office**|Adapt (North East)|
||Old Highways Depot|
||Burn Lane|
||Hexham|
||Northumberland|
||NE46 3HN|
|**Auditor**|Sumer Auditco Limited|
||Finchale House|
||Belmont Business Park|
||Durham|
||DH1 1TW|
|**Bankers**|Unity Trust Bank|
||Nine Brindleyplace|
||4 Oozells Square|
||Birmingham|
||B1 2HB|
Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 4|
|Independent auditor's report|5 - 7|
|Statement of financial activities|8 - 9|
|Balance sheet|10|
|Statement of cash flows|11|
|Notes to the financial statements|12 - 25|
Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2025. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
## **Objectives and activities**
The charity's objective is to improve the quality of life of both disabled and disadvantaged people in the North East, with a focus on Northumberland.
To provide relief to inhabitants in the North East who have need because of youth, age, sickness, mental or physical disability or poverty by the provision and maintenance of a non-profit community transport service.
## _Public benefit_
From 1 April 2008, section 4 of the Charities Act 2006 requires all charities to meet the legal requirement that its aims are for the public benefit. The Trustees confirm that they have complied with the duty to have due regard to the Charity Commission's general guidance on public benefit.
The Charity Commission states that there are two principles to be met in order to show that an organisation's aims are for the public benefit: firstly, there must be an identifiable benefit or benefits and secondly that the benefit must be to the public, or a section of the public.
The Trustees are satisfied that the aims and objectives of the charity, and the activities reported on above, meet these principles.
## _Significant activities_
The main activities of the charity are to provide information, advice and projects are defined by need. Currently, they are information and guidance, advocacy and community transport.
Adapt provides the Healthwatch function for Northumberland, providing to the public the consumer champion role for Health and Social Care.
Adapt provides general advocacy for qualifying adults in Northumberland and specialist advocacy for parents referred through Northumberland Children's Services. Adapt within its work across Northumberland provides a network for groups and organisations who are providing services for people with Learning Disabilities.
Adapt provides the Social Prescribing service for three Primary Care Networks across Northumberland and North Tyneside including West Northumberland PCN, Northumbria PCN and North Shields PCN.
Under the Memorandum & Articles of Association the charity has the power to invest the monies of the Association not immediately required for its purposes in or upon such investments, securities or property as may be thought fit, subject nevertheless to such conditions (if any) and such consents (if any) as may for the time being be imposed or required by law and subject also as hereinafter provided.
## _Volunteers_
The organisation works closely with volunteers who help to provide a successful service within the community during the financial year.
## **Achievements and performance**
## _Significant activities and achievements against objectives_
Throughout the year Adapt (North East) continued to deliver the Healthwatch function and the NHS independent complaints advocacy service for Northumberland County and the statutory Advocacy service for Northumberland County Council.
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Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
Traveling with Confidence is new joint venture project with Your Voice Counts which aims to increase travel skills and confidence of people with learning difficulties.
Adapt (North East) continued to provide the Social Prescribing Service for West Northumberland PCN, Northumbria Primary Care Network and North Shields PCN.
## **Financial review**
## _Reserves policy_
The Trustees monitor the finances of the Charity on a regular basis and feel the risk to be minimal in reducing the level of free reserves and wish to ensure the future prospects of the Charity by securing a suitable base for its operations.
The Trustees have determined that the appropriate level of free reserves (unrestricted net current assets), which were £119,835 (see note 26) should be equivalent to be not less than 45% of the core costs. As at 31 March 2025 reserves are below this target.
Our policy is therefore to increase the reserves (which are carried forward for future core activities) to at least this level by maintaining the operating surpluses and judicious investment management of our investment assets.
The trustees have ensured the restricted funds received from various sources have been used effectively and within the funders remit.
The trustees have ensured the unrestricted funds have been used to develop the sustainability of Adapt (North East).
Note 24 and 25 to the financial statements describes the various funds of the charity and summarises the year's movements on each fund.
The results for the year are set out on page 8.
Income increased by £28,549 compared to last year.
Resources expended in the year total £1,068,346 and remain in line with prior years and are as expected. Overall, a deficit of £63,442 has occurred in the financial year. This is after depreciation charges of £3,350.
The trustees are satisfied with level of performance in the year. Total funds at 31 March 2025 were £593,891 (2024: £657,333) of which £153,420 (2024: £151,230) were restricted and £440,471 (2024: £506,103) were unrestricted. The trustees are satisfied with the overall position.
## **Plans for future periods**
Adapt (North East) is planning to build on current services and develop new ones to meet requirements of disabled and disadvantaged people.
Adapt (North East) has been successful in delivering Social Prescribing Services and plans to widen this offer working with the NHS.
Adapt (North East) will be reviewing the position of the Cafe @ Burn Lane due to the loss suffered in this financial year. This was mainly contributed to the rising costs of food and utilities.
## **Structure, governance and management**
Adapt (North East) is a company limited by guarantee and does not have a share capital. It is a registered charity and is governed by its Memorandum & Articles of Association.
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Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
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:
A Bishop
M Briggs G Clarke
L Hershon P Maginn M Ostler A Stevenson R E Theobalds
## _Recruitment and appointment of trustees_
Trustees are recruited for skills to enable them to contribute to the governance of Adapt, a variety of mediums are used to recruit suitable trustees. Trustees hold office for an agreed period of time and are ratified at the Annual General Meeting.
## _Organisational structure_
The Trustee board of honorary officers and its members are responsible for the day to day running of the charity. The Trustee board meets bi-monthly and is fully conversant with its legal obligations and has policies and procedures to review the work of the charity.
## _Induction and training of trustees_
Trustees have agreed to review training on an ongoing basis, with individual trustees accessing relevant training as required.
## _Related parties_
Adapt (North East) works closely with local voluntary and statutory organisations including, Northumberland County Council.
## **Statement of trustees' responsibilities**
The trustees, who are also the directors of ADAPT (North East) 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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures
- disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity
- will continue in operation.
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.
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Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2025**_
## **Auditor**
In accordance with the company's articles, a resolution proposing that Sumer Auditco Limited be reappointed as auditor of the company will be put at a General Meeting.
## **Risk management**
The trustees have examined the main areas of the charity's activities, and looked at the main risks likely to arise in each of these areas. The trustees consider that the systems that have been adopted are adequate to minimise those risks to an acceptable level in the day to day operation of the charity.
It is the opinion of the trustees that for the financial year ended 31 March 2025 the charity has achieved its objectives.
The trustees' report was approved by the Board of Trustees.
> .............................. [ apt4F8CCDF1C429413... by: L Hershon
## **Trustee**
17 December 2025
Date: .............................................
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Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF ADAPT (NORTH EAST)**
## **Opinion**
We have audited the financial statements of ADAPT (North East) (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:
- give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the _Auditor's responsibilities for the audit of the financial statements_ section of our report. We are independent of the 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 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 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.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees' report; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
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Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ADAPT (NORTH EAST)**
## **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**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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.
## **Capability of the audit in detecting irregularities, including fraud**
Based on our understanding of the charitable company and the sector in which it operates, we identified that the following laws and regulations are significant to the entity:
• Those laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards and Charities Act 2011, Employment and Pension legislation.
• Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the Charity and therefore may have a material effect on the financial statements include compliance with charitable objectives, public benefit, fundraising regulations, safeguarding, data protection and health and safety legislation.
These matters were discussed amongst the engagement team at the planning stage and the team remained alert throughout the audit.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and noncompliance with laws and regulations) comprised of: inquiries of management and the Trustees as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence and legal costs incurred; review of Trustee meeting minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
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.
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Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ADAPT (NORTH EAST)**
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
[ **David Holloway BA FCA DChA (Senior Statutory Auditor)** DavidSigned025A9DBEB6A74D2... by: Holloway **For and on behalf of Sumer Auditco Limited Registered Auditors Accountants**
**Finchale House Belmont Business Park Durham DH1 1TW**
17 December 2025 Date: .........................
Sumer Auditco Limited is eligible for appointment as auditor of the Charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
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Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## **FOR THE YEAR ENDED 31 MARCH 2025**
|**Current financial year**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2025**
**2025**
**Notes**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
2,480
-
Charitable activities
**4**
147,878
684,646
Other trading activities
**5**
129,503
-
Investments
**6**
40,397
-
Other income
**7**
-
-
**Total income**
320,258
684,646
**Expenditure on:**
Raising funds
**8**
94,288
-
Charitable activities
**9**
291,602
682,456
**Total expenditure**
385,890
682,456
**Net income/(expenditure) and movement in funds**
(65,632)
2,190
**Reconciliation of funds:**
Fund balances at 1 April 2024
506,103
151,230
**Fund balances at 31 March 2025**
440,471
153,420|**Total**
**2025**
**£**
2,480
832,524
129,503
40,397
-
1,004,904
94,288
974,058
1,068,346
(63,442)
657,333
593,891|**Total**
**2024**
**£**
1,362
830,689
62,710
77,510
4,084
976,355
12,365
970,100
982,465
(6,110)
663,443
657,333|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 12 to 25 form part of these financial statements.
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Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## **FOR THE YEAR ENDED 31 MARCH 2025**
|**Prior financial year**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2024**
**2024**
**Notes**
**£**
**£**
**Income and endowments from:**
Donations and legacies
**3**
1,362
-
Charitable activities
**4**
158,686
672,003
Other trading activities
**5**
62,710
-
Investments
**6**
77,510
-
Other income
**7**
4,084
-
**Total income**
304,352
672,003
**Expenditure on:**
Raising funds
**8**
12,365
-
Charitable activities
**9**
297,151
672,949
**Total expenditure**
309,516
672,949
**Net income and movement in funds**
(5,164)
(946)
**Reconciliation of funds:**
Fund balances at 1 April 2023
511,267
152,176
**Fund balances at 31 March 2024**
506,103
151,230|**Total**
**2024**
**£**
1,362
830,689
62,710
77,510
4,084
976,355
12,365
970,100
982,465
(6,110)
663,443
657,333|
|---|---|
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Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **BALANCE SHEET**
## _**AS AT 31 MARCH 2025**_
||||**2025**|||**2024**||
|---|---|---|---|---|---|---|---|
||**Notes**|**£**||**£**|**£**||**£**|
|**Fixed assets**||||||||
|Tangible assets|**15**|||7,167|||7,042|
|Investment property|**16**|||575,000|||575,000|
|Investments|**17**|||1|||1|
|||||582,168|||582,043|
|**Current assets**||||||||
|Stocks|**18**|-|||185|||
|Debtors|**19**|64,012|||159,848|||
|Cash at bank and in hand||302,909|||278,173|||
|||366,921|||438,206|||
|**Creditors: amounts falling due within**|**21**|||||||
|**one year**||(93,666)|||(95,796)|||
|**Net current assets**||||273,255|||342,410|
|**Total assets less current liabilities**||||855,423|||924,453|
|**Creditors: amounts falling due after**||||||||
|**more than one year**|**22**|||(261,532)|||(267,120)|
|**Net assets**||||593,891|||657,333|
|**The funds of the Charity**||||||||
|Restricted income funds|**24**|||153,420|||151,230|
|Unrestricted funds|**25**|||440,471|||506,103|
|||||593,891|||657,333|
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
17 December 2025
The financial statements were approved by the trustees on .........................
[ apt by:
.............................. 4F8CCDF1C429413... L Hershon
## **Trustee**
Company registration number 03604980 (England and Wales)
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Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 MARCH 2025**_
|**Notes**
**Cash flows from operating activities**
Cash (absorbed by)/generated from
operations
**28**
**Investing activities**
Purchase of tangible fixed assets
Proceeds from disposal of tangible fixed
assets
Investment income received
**Net cash generated from investing activities**
**Financing activities**
Repayment of bank loans
**Net cash used in financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2025**
**£**
(3,475)
-
40,397
(5,160)|**£**
(7,026)
36,922
(5,160)
24,736
278,173
302,909|**2024**
**£**
(5,438)
4,084
77,510
(4,883)|**£**
33,070
76,156
(4,883)
104,343
173,830
278,173|
|---|---|---|---|---|
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Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025**
## **1 Accounting policies**
## **Charity information**
ADAPT (North East) is a private company limited by guarantee incorporated in England and Wales. The registered office is Adapt (North East), Old Highways Depot, Burn Lane, Hexham, Northumberland, NE46 3HN.
## **1.1 Basis of preparation**
The financial statements have been prepared in accordance with the Charity's governing document, the Companies Act 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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)". 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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair 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.
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 Income**
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. The following specific policies are applied to particular categories of income:
-Voluntary income is received by way of grants, donations and gifts are included in full in the Statement of Financial Activities when the trust becomes entitled. Grants, where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.
-Investment income is included when receivable.
-Incoming resources from charitable trading activities are accounted for when earned.
-Income from commercial trading activities is recognised as earned (as the related services are provided).
## **1.5 Expenditure**
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 the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
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Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025**
## **1 Accounting policies**
## **(Continued)**
## **Allocation and apportionment of costs**
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 the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
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:
Plant and equipment 25% Straight line Fixtures and fittings 25% Straight line Motor vehicles 25% Straight line
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.
## **1.7 Investment property**
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
## **1.8 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.
## **1.9 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).
## **1.10 Stocks**
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
## **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.
- 13 -
Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025**
## **1 Accounting policies**
## **(Continued)**
## **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.
## _**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.
- 14 -
Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025**
## **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 Income from donations and legacies**
||**Unrestricted**|**Unrestricted**|
|---|---|---|
||**funds**|**funds**|
||**2025**|**2024**|
||**£**|**£**|
|Donations and gifts|1,327|1,021|
|Membership fees|1,153|341|
||2,480|1,362|
- 15 -
Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025**
## **4 Income from charitable activities**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2025**
**2025**
**£**
**£**
**Core and Transport**
Bus hire
31,742
-
Contract income
58,713
-
Grants
57,423
60,539
Training
-
-
**Healthwatch**
Grants
-
215,679
**Advocacy service**
Grants
-
54,002
**Living Well**
Grants
-
352,426
**SMI Project**
Grants
-
-
**Thriving together**
Grants
-
2,000
147,878
684,646
Grants received, included in the above, are as follows:
Northumberland County Council
BSOG
West Northumberland PCN
North Shields PCN
Dial-a-ride
GetAbout
Ponteland Medical Group
Your Voice Counts
Thriving Together Learning
Northumbria PCN
Cumbria, Northumberland, Tyne and
Wear NHS Foundation Trust
Mental Health Concern
Healthwatch
DWP Access to Work
Other|**Total**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2025**
**2024**
**2024**
**£**
**£**
**£**
31,742
31,767
-
58,713
84,213
-
117,962
41,950
-
-
756
-
215,679
-
204,529
54,002
-
63,071
352,426
-
358,693
-
-
16,652
2,000
-
29,058
832,524
158,686
672,003
**2025**
268,711
7,078
138,063
107,538
14,283
36,000
106,826
60,539
2,000
-
-
-
-
-
1,031
742,069|**Total**
**2024**
**£**
31,767
84,213
41,950
756
204,529
63,071
358,693
16,652
29,058|
|---|---|---|
|||830,689|
|||**2024**
323,329
5,950
186,712
65,100
-
-
-
-
-
102,740
4,800
16,652
4,279
3,182
1,209|
|||713,953|
- 16 -
Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025**
## **5 Income from other trading activities**
|||**Unrestricted**|**Unrestricted**|
|---|---|---|---|
|||**funds**|**funds**|
|||**2025**|**2024**|
|||**£**|**£**|
||Cafe income|87,728|21,903|
||Room hire and sundry income|41,775|40,807|
||Other trading activities|129,503|62,710|
|**6**|**Income from investments**|||
|||**Unrestricted**|**Unrestricted**|
|||**funds**|**funds**|
|||**2025**|**2024**|
|||**£**|**£**|
||Rental income|40,397|38,260|
||Income from unlisted investments|-|39,250|
|||40,397|77,510|
|**7**|**Other income**|||
|||**Unrestricted**|**Unrestricted**|
|||**funds**|**funds**|
|||**2025**|**2024**|
|||**£**|**£**|
||Net gain on disposal of tangible fixed assets|-|4,084|
|**8**|**Expenditure on raising funds**|||
|||**Unrestricted**|**Unrestricted**|
|||**funds**|**funds**|
|||**2025**|**2024**|
|||**£**|**£**|
||**Fundraising and publicity**|||
||Cafe expenses|39,035|12,365|
||**Trading costs**|||
||Staff costs|55,253|-|
||Total costs|94,288|12,365|
- 17 -
Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025**
## **9 Expenditure on charitable activities**
|**Direct costs**
**Support and**
**governance**
**costs**
**2025**
**2025**
**£**
**£**
Core and transport
122,358
191,677
Healthwatch
192,550
17,312
Advocacy service
78,781
4,663
Bernicia Hardship fund
-
-
Living well
336,016
1,770
SMI Project
8,873
3,616
Thriving together
-
16,442
738,578
235,480|**Total Direct costs**
**Support and**
**governance**
**costs**
**2025**
**2024**
**2024**
**£**
**£**
**£**
314,035
57,754
241,050
209,862
181,724
13,776
83,444
80,012
58
-
2,237
-
337,786
358,693
-
12,489
17,045
3,135
16,442
14,616
-
974,058
712,081
258,019|**Total**
**2024**
**£**
298,804
195,500
80,070
2,237
358,693
20,180
14,616|
|---|---|---|
|||970,100|
- 18 -
Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025**
## **10 Support costs allocated to activities**
|Staff costs
Depreciation
Rent, rates and water
Insurance
Light and heat
Telephone
Printing postage and stationery
Advertising
Sundries
Repairs and maintenance
Computer support
Finance costs
Governance costs
**Analysed between:**
Core and transport
Healthwatch
Advocacy service
Living well
SMI Project
Thriving together
**11**
**Net movement in funds**
The net movement in funds is stated after charging/(crediting):
Fees payable to the charity's auditor:
- for the audit of the charity's financial statements
- for independent examination fees
- for other financial services
Depreciation of owned tangible fixed assets
Loss/(profit) on disposal of tangible fixed assets|**2025**
**£**
121,522
3,350
5,292
7,113
27,515
7,936
3,609
156
2,895
14,154
5,413
23,503
13,022
235,480
191,677
17,312
4,663
1,770
3,616
16,442
235,480
**2025**
**£**
6,500
-
6,086
3,350
-|**2024**
**£**
146,481
3,180
4,463
6,161
22,074
9,251
6,593
7,195
6,104
10,157
6,082
22,975
7,303
258,019
241,050
13,776
58
-
3,135
-
258,019
**2024**
**£**
-
3,800
2,327
3,180
(4,084)|
|---|---|---|
## **12 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits during the current or prior year.
Expenses for trustee's offering volunteering service of £180 was paid during the year (2024: £Nil).
- 19 -
Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025**
## **13 Employees**
The average monthly number of employees during the year was:
|Charitable activities
Administration and governance
Total
**Employment costs**
Wages and salaries
Social security costs
Other pension costs
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:
Aggregate compensation|**2025**
**Number**
32
3
35
**2025**
**£**
727,592
53,639
26,774
808,005
**2025**
**£**
57,663|**2024**
**Number**
34
3|
|---|---|---|
|||37|
|||**2024**
**£**
696,983
49,380
24,631|
|||770,994|
|||**2024**
**£**
57,663|
## **14 Taxation**
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
- 20 -
Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025**
|**15**
**Tangible fixed assets**
**Plant and**
**equipment**
**Fixtures and**
**fittings**
**£**
**£**
**Cost**
At 1 April 2024
16,590
209,969
Additions
3,475
-
At 31 March 2025
20,065
209,969
**Depreciation and impairment**
At 1 April 2024
9,548
209,969
Depreciation charged in the year
3,350
-
At 31 March 2025
12,898
209,969
**Carrying amount**
At 31 March 2025
7,167
-
At 31 March 2024
7,042
-
**16**
**Investment property**
**Fair value**
At 1 April 2024 and 31 March 2025|**Motor**
**vehicles**
**£**
99,112
-
99,112
99,112
-
99,112
-
-|**Total**
**£**
325,671
3,475|
|---|---|---|
|||329,146|
|||318,629
3,350|
|||321,979|
|||7,167|
|||7,042|
|||**2025**
**£**
575,000|
Investment property comprises £575,000. The fair value of the investment property has been arrived at on the basis of a valuation carried out on 31 March 2025 based on an open market value basis by the Trustees. **17 Fixed asset investments**
||||**Unlisted**|
|---|---|---|---|
||||**investments**|
||||**£**|
||**Cost or valuation**|||
||At 1 April 2024 & 31 March 2025||1|
||**Carrying amount**|||
||At 31 March 2025||1|
||At 31 March 2024||1|
|**18**|**Stocks**|||
|||**2025**|**2024**|
|||**£**|**£**|
||Finished goods and goods for resale|-|185|
- 21 -
Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025**
## **19 Debtors**
|**Amounts falling due within one year:**
Trade debtors
Amounts owed by subsidiary undertakings
Other debtors
Prepayments and accrued income|**2025**
**£**
45,968
5,011
1,882
11,151
64,012|**2024**
**£**
91,247
55,229
1,287
12,085|
|---|---|---|
|||159,848|
## **20 Loans and overdrafts**
|Bank loans
Payable within one year
Payable after one year|**2025**
**£**
266,975
5,443
261,532|**2024**
**£**
272,135|
|---|---|---|
|||5,015
267,120|
The long-term loans are secured by way of debenture, including both fixed and floating charges, over all land & buildings owned by the charity, and all associated plant & machinery and rental income.
## **21 Creditors: amounts falling due within one year**
|**Notes**
Bank loans
**20**
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income
**22**
**Creditors: amounts falling due after more than one year**
**Notes**
Bank loans
**20**
**23**
**Retirement benefit schemes**
**Defined contribution schemes**
Charge to profit or loss in respect of defined contribution schemes|**2025**
**£**
5,443
15,319
8,413
5,141
59,350
93,666
**2025**
**£**
261,532
**2025**
**£**
26,774|**2024**
**£**
5,015
12,111
16,488
3,998
58,184|
|---|---|---|
|||95,796|
|||**2024**
**£**
267,120|
|||**2024**
**£**
24,631|
- 22 -
Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025**
## **23 Retirement benefit schemes**
## **(Continued)**
The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund.
## **24 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.
||**At 1 April**|**Incoming**|**Resources**|**At 31 March**|
|---|---|---|---|---|
||**2024**|**resources**|**expended**|**2025**|
||**£**|**£**|**£**|**£**|
|Healthwatch Northumberland|59,183|215,679|(209,862)|65,000|
|Advocacy Service|28,000|54,002|(82,002)|-|
|Bernicia Hardship Fund|3,465|352,426|(355,891)|-|
|Northumberland Food|13,651|-|(1,000)|12,651|
|Social Isolation Fund|20,000|-|(1,770)|18,230|
|SMI Project|12,489|-|(12,489)|-|
|Thriving Together|14,442|2,000|(16,442)|-|
|Travelling with confidence|-|60,539|(3,000)|57,539|
||151,230|684,646|(682,456)|153,420|
|**Previous year:**|**At 1 April**|**Incoming**|**Resources**|**At 31 March**|
||**2023**|**resources**|**expended**|**2024**|
||**£**|**£**|**£**|**£**|
|Healthwatch Northumberland|50,153|204,530|(195,500)|59,183|
|Advocacy Service|45,000|63,070|(80,070)|28,000|
|Bernicia Hardship Fund|6,175|358,693|(358,693)|6,175|
|Nothumberland Food|14,831|-|(2,710)|12,121|
|Social Isolation Fund|20,000|-|(1,180)|18,820|
|SMI Project|16,017|16,652|(20,180)|12,489|
|Thriving Together|-|29,058|(14,616)|14,442|
||152,176|672,003|(672,949)|151,230|
## **25 Unrestricted funds**
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
||**At 1 April**|**Incoming**|**Resources**|**At 31 March**|
|---|---|---|---|---|
||**2024**|**resources**|**expended**|**2025**|
||**£**|**£**|**£**|**£**|
|General funds|506,103|320,258|(385,890)|440,471|
- 23 -
Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025**
|**25**|**Unrestricted funds**||||**(Continued)**|
|---|---|---|---|---|---|
||**Previous year:**|**At 1 April**|**Incoming**|**Resources**|**At 31 March**|
|||**2023**|**resources**|**expended**|**2024**|
|||**£**|**£**|**£**|**£**|
||General funds|511,267|304,352|(309,516)|506,103|
|**26**|**Analysis of net assets between funds**|||||
||||**Unrestricted**|**Restricted**|**Total**|
||||**funds**|**funds**||
||||**2025**|**2025**|**2025**|
||||**£**|**£**|**£**|
||**At 31 March 2025:**|||||
||Tangible assets||7,167|-|7,167|
||Investment properties||575,000|-|575,000|
||Investments||1|-|1|
||Current assets/(liabilities)||119,835|153,420|273,255|
||Long term liabilities||(261,532)|-|(261,532)|
||||440,471|153,420|593,891|
||||**Unrestricted**|**Restricted**|**Total**|
||||**funds**|**funds**||
||||**2024**|**2024**|**2024**|
||||**£**|**£**|**£**|
||**At 31 March 2024:**|||||
||Tangible assets||7,042|-|7,042|
||Investment properties||575,000|-|575,000|
||Investments||1|-|1|
||Current assets/(liabilities)||191,180|151,230|342,410|
||Long term liabilities||(267,120)|-|(267,120)|
||||506,103|151,230|657,333|
## **27 Related party transactions**
## **Transactions with related parties**
During the year the Charity entered into the following transactions with related parties:
During the year 1 trustee's family received a hardship grant of £600 from a Social Prescribing referral.
Expenses for trustee's offering volunteering service of £180 was paid during the year.
- 24 -
Docusign Envelope ID: 24496578-849A-4089-8B57-7C520CAC24A5
## **ADAPT (NORTH EAST)**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025**
|**28**|**Cash (absorbed by)/generated from operations**||**2025**|**2024**|
|---|---|---|---|---|
||||**£**|**£**|
||Deficit for the year||(63,442)|(6,110)|
||**Adjustments for:**||||
||Investment income recognised in statement of financial activities||(40,397)|(77,510)|
||Gain on disposal of tangible fixed assets||-|(4,084)|
||Depreciation and impairment of tangible fixed assets||3,350|3,180|
||**Movements in working capital:**||||
||Decrease/(increase) in stocks||185|(185)|
||Decrease in debtors||95,836|67,076|
||(Decrease)/increase in creditors||(2,558)|50,703|
||**Cash (absorbed by)/generated from operations**||(7,026)|33,070|
|**29**|**Analysis of changes in net funds**||||
|||**At 1 April 2024**|**Cash flowsAt 31 March 2025**||
|||**£**|**£**|**£**|
||Cash at bank and in hand|278,173|24,736|302,909|
||Loans falling due within one year|(5,015)|(428)|(5,443)|
||Loans falling due after more than one year|(267,120)|5,588|(261,532)|
|||6,038|29,896|35,934|
- 25 -