Charlty reglstratlon number 1083910 (England and Wales) Company reglstratlon number 03998925 HEADWAY EAST LONDON ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
HEADWAY EAST LONDON LEGAL AND ADMINISTRATIVE INFORMATION Trustees S Edwards G Hodgson (Chair) A Kershberg P Stanford T Russell T Snealh M Samwell S Haward (Appolnted 19 Sepl8mb8r 2024) (Appoinled 19 Sepl8mber 2024) Secretary W Geertsema Charlty number 1083910 Company number 03998925 Reglstered offlce Bradbury House Timber Wharf 238-240 Kingsland Road London E2 8AX Audltor BK Plu5 Audit Limiled Oakingham House Frederick Place Hlgh Wycombe Buckinghamshire HP111JU
HEADWAY EAST LONDON CONTENTS Page Trust8es' report Independent audilorfs r8POrt Statement of financial activities Balance sheet Statement of c8sh flows 10 Notes lo Ihe financial slal8m8nts
HEADWAY EAST LONDON TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2025 This has been a year of growth, change, and celebration for Headway Easl London. Following a vibrant 25th anniversary year, 2024-25 has seen the organisallon continue lo delNer outstanding seNic4s while laying Ihe groundwork for our future expansion. W8 end8d th8 calandar year with a joyful month of events, ce18braling our members, volunteers and staff wilh parties across December including a memorable karaoke performance from some of our Iruslees at the volunteer celebralionl These moments remind us how important connection and community are lo Headwals Gullur6 and our work. Thare havè been lots of excitlng dev8lopmants in our funding landscap8. We received renewed and new commllmenls for key services, including Ihe Casework Team. A particular highlight was a one-off grant of £20.000 from a charitable trust-offared afl8r trusteas watch8d our film The Magic of Chaos. Combined with our mulll-year grants, these developments place us in a strong and stable financial position going Into 2025-26. This year has also involved deeper collaboration and leadership developmenl across Ihe organisalion. Budget seltlng in December and January brought together managers from every area to shape our financial priorltles, wllh a slrong level of engagemenl and shared ownership. Alongside this, our Fundraising Manager, Kalh Lee, was promoted into our senior managemenl team as Director of Fundraising, and we appointed a Director of Services, Claire Farrington-Douglas, who jolned In March, Thes8 appoinlmenls slr8nglhen ourleadership capacily at a crucial lime, as we prepare lo extend our reach. A business case Io establish a new day service In South Easl London has been agreed. This opportunity has emerged Ihrough a chance meeting and subsequent partnership with a local group. With agreement lo use their remalning funds, we're developing plans to co-creale a new service rooted in Headway's cor8 values. Wllh Ihls expansion comes a blgger question about idenlily and naming. We have started early work on a change of nam8 from Headway Easl London lo Headway London thal reflects bolh our current and future geography. Over Ihe comlng months. we'll consult with olher Headway groups and branches across the London area to build collaboration around this ambition. As we look ahe8d, we remaln rooted In the communlty of members, staff and volunle8rs who make our work posslble. We are proud of everythlng wa've achieved log81h8r Ihis y8ar and exclt8d for what comes next, Sarah Lantsbury, Chief Executive Glen Hodgson, Chair
HEADWAY EAST LONDON TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Servlceloepartment highllghts Fundralslng We've sustained strong momentum this year, securing new grants and cultivaling positive relationships with major funders. All major reports to fundérs. including the Arts Council and Nalional Lottery. were successfully completed. Allhough the grants environmenl remains highly compelilive, we've laid solid groundwork for future a pplications and launched developmenl of a capital fundraislng strategy for a new sile. Development Our parlnerships continue lo thrive. We've secured a 4-year commilmenl from solicitor fimi Boll, Burdon & Kemp (BBK) for our Casework service and launched collaborative crealiv& projects with Vital Arls, Brainbook, and Cralnio, Our kitchen team catered communily evenls and secured a &slar hygiene rating. while Submit lo Love Studio raised over £5,000 at their Chrislmas Open Studio. Communlcatlons & Publlc Engagement Our 251h anniversary heritage prolecl culminated with our documentary The Magic of Chaos, which premiered lo 8 sold.oul audience and gained further reach via ITV, cinemas, and online p1alforrnengagIng tens of thousands of viewers. Strategic support from Cream UK has delivered over £50k in priTrbono advertlslng and improved our digital presence. A lour of differenlly various in different spaces reached audiences at exhibilions and events across our catchment area. Meanwhlle, our events programme-fealurlng the Winter Feast and new public performances- conllnues to connect our members wllh wlder audiences. Day & Evanlng Servlces We welcomed new members, launched cr8alive groups, and ntInued to expand our volunteer team and bulld partnerships in the community. Hlghllghts Include 8 successful group exhibition In Shoredilch, a string of sell-out Headway Eats supper clubs, and a drama performance in Chats Palace. In the kitchen, d8mand for Headway lunches is al an all-lime hlgh slnce being supported to offer free Meals lo members by a generous donallon from a former volunteer and Ihelr friend. The Day SeNlce is now al capaclly, and alongslde th8 Evening SeNic8, whlch continues lo grow, we are explorlng ways to increas8 access and space.
HEADWAY EAST LONDON TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Communlty Support Work Servlce The service has grown steadily with more assessments, new stsrters, and improved peer suppori aclivily. Slaff turnover has presented challenges, bul we are addressing recruilment and retention through permanent roles and Improved conlracts lo ensure conlinuity and financial efficlency. Therapy Servlce Our low-cost therapy offer expande(J and our private therapy team is growing In strength 2nd vislbilily. New research parinershlps blossomed, including presenlalions at national avents and academic collaborations wllh UCL and Anglia-Ruskin Medical School. "Member Led Training" (MLT) peer tralnlng, which Is provlded by our b8neflclarles or "members., has begun Ils next phase wilh co-design groups and has lined up two pilot Iralning evanls. W8 ar8 also worklng closely with NHS parlners to support Ihe development of acc8sslble seNices for people wllh brain Injuries. Casework Service We've Increased our reach and welcomèd a new full-time caseworker. With generous fundlng from BBK and the Nallonal Lottery Communlly Fund, we're building capaclty and expanding support across hospitals. Our support groups conllnue lo grow In popularity, and we're working closely with domestic violence charities to b&ll8r me81 members, needs. Staff shortages have posed challenges. bul with positions now filled we can work to reduce the wailing list and strengthen hospi181 relationships. Flnance We built a strong financlal foundation Ihis year with a heallhy cash reserve, better debt recovery, and ieal-time r8porling Includlng a delailed restricted fund analysis. Th8 focus now is on refining our purchase order system, refreshing our chart of accounts, and improving accesslbilily lo financial tools. Admln & Facllltles The team oversaw upgrades to healing and lighling, supported events, and halped achleve the kitchen's 5-star hygien8 raling. Referrals and data processing have improved. and we are preparing for a major IT upgrade in April. A new caretaker has been recruited from our volunteer base, adding valuable Iiv8d experience lo our team. S Edwards G Hodg$on (Chair) A Kershberg P Slanford T Russell T Snealh M Samwell S Hayward (Appointed 19 September 2024) (Appolnted 19 September 2024)
HEADWAY EAST LONDON INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF HEADWAY EAST LONDON Oplnlon We have audited Ihe financial slalemenls of Headway East London (the 'charity') for Ihe year ended 31 March 2025 which comprise Ihe stalement of financial aclivilies. the balance sheet. the slalemenl of cash flows and notes to the financial slatemenls, including significant accounling policies. The financlal reporling framework that has been applied in their preparation is applicable law and Uniled Kingdom Accounting Standards, including Flnancial Reporting Standard 102 The Fin8nci81 Reporting Slandard applicabl8 in Ihe UK and Republic of Ireland (Uniled Kingdom Generally Accepted Accountlng Praclice). In our opinion, the financial statements: glve a true and fair view of Ihe slat6 of the charitable companvs affalrs as at 31 March 2025 and of Ils incoming resources and appllcation of resources. for the year then ended: have been properly prepared in accordance with Uniled Kingdom Generally Accepted Accounling Pracllce; and have been prepared in accordance with the requirements of the Companies Acl 2006. Basls for oplnlon We conducted our audit In accordance wilh Inlernalional Standards on Auditing (UK) (ISAS {UK)) and appllcable law. Our responsibilities under those standards are further described in the Audilorfs r6sponslbililies for lh8 audil ol the financial slatemenls section of our report. We are independenl of the charity in accordance with the elhical requirements thal are relevanl lo our audil of the financial slatemenls in Ihe UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirem8nls. We believe th81 the audit evidence we hav6 obtained is sufficient and appropriate to provide a basis for our opinion, Conclu8ion8 relatlng to golng concern In 8udiling th8 financial slalemenls, we have concluded Ihal Ihe Iwslees, use of the going concen basis of accounting in the preparation of the financial slatemenls is appropriale. Based on the work we have performed. we have not identified any material uncertalnties re5aling lo events or condillons Ihal, individually or collectively, may cast significanl doubt on Ihe charity's abilily to continue as a going concern for a period of 81 least Iwelve months from when Ihe financial slatemenls are authorised for issue. Our responsibilities and the responsibilities of the Iruslees wilh respect to going Concem are described In Ihe relevant sections of this report. other inforniatlon The other Information comprlses the information Included in the annual report olher than the financial slalemenls and our audilorfs r8POrt Ihareon. The trustees are responsible for Ihe olhar Information contalned within the annual report. Our oplnlon on Ihe financial stalemenls does nol cover Ihe olher information and we do not express any form of assurance conclusion Ih8reon. Our responslblllly is to read tha other information and, In dolng so. conslder whelher the olher information is m8lerially inconsistent with the financial slatemenls or our knowledge oblalned in Ihe Course of the audil, or olherwlse appears to be materially misstaled. If we idenlify such materk31 inconsislencles or apparent material misslalemenls, we ara required to determine whether Ihis gives rise to a mater&1 misslalement In Ihe financlal stalemenls themselves. If, based on the work we have performed, we conclud8 that there Is 2 material misstalemenl of this other information, we are required lo report Ihal fact. We have nothlng to report In thls regard. Oplnlons on other matters prescrlbed by the Companle5 Act 2006 In our oplnlon, based on the work undertaken in the course ol our audi1= the inforrnalion given in the trustees, report for the financial year for whlch the financlal statemenls are prepared, whlch includes tho direclors, report prepared for the purposes of company law, is consislenl wilh the financial slalaments,. and Ihe directors, report included within the truslees, report has been prepared in accordance with aNJlicable legal requiremenls.
HEADWAY EAST LONDON INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF HEADWAY EAST LONDON Matters on whlch we are required lo report by exception In Ihe light of Ihe knowledge and understanding of Ihe charity and Its environment obtained in Ihe course of the audit, we have not identified material misslatemenls in the trustees report. We have nothing lo report in respect of the following mallers in relation to which Ihe Charilies (Accoun15 and Reports) Regulations 2008 re(yires us to report to you if, in our opinion: adequate accounting records have not been kept. or returns adequale for our audit have not been re1Ved from branches not vlslted by us: or the financlal slatemenls are not in agreement Wtth lh8 accounting records; or certaln dlsclosures of Iruslees, remuneration specified by law are not rnad8; or we have not recelved all tha information and explanations we requlre for our audit. the trustees were nol enlill8d lo prepare the financial slalements In accrdanCe with tho small companies regime and lake advantage of the small companles, exempllons In preparing tha trustees, report and from the requlrement lo prepare a strategic report. R6sponslbllltl6s of trustaes As explained more fully in the slatemenl of Irusl8es' responslbllilles, Ihe Iruslees, who are a150 the dSrectors of the charlly for the purpose of company law, are responsible for the preparallon of the finanGlal stal8menls and for being salisfi8d that Ih8y giv8 2 true and fair viaw, and for such Inlemal control as the Iruslees delermlne Is necessary lo enable Ihe preparation of financial statements Ihat are free from material misslalem8nl, wh8ther due lo fraud or error. In preparing the financial stalem8nls, the Iruslees are responsible for assessing the charity's abilily lo conlinue as a going concern, disclosing. as applicable. mallers relaled lo going concern and using Ihe going concern basis of accounting unless Ihe Iruslees either intend lo liquida18 the charitable company or lo cease operations, or have no realistic allemalive bul lo do so. Audllor's re8ponslbllltles for the audlt of the flnanclal 81atemenls We have been appointed as auditor under section 144 of th8 Charilies Act 2011 and repor1 in accordance with the Act and relevant regulalions made or having effect Ihereunder. Our obfjectives are lo obtain reasonable assurance aboul whelher the financial statements as a whole are free from malerial mi5Stalemenl, whether due lo fraud or error, and lo issue an auditor's report Ihal includes our opinion. Reasonab16 assurance is a high18V81 of assurance bul is nol a guarantee Ihal an audit conducted in accordance wilh ISAS {UK) wlll always delecl a material misslalemenl when it exists, Misslalom8nls can arise from fraud or error and are considered material if, individually or in the aggregala, Ihey could reasonably be expected to influence the economic decisions of users taken on Ihe basls of Ihese financial slatemenls. ITregularilies. including fraud, are instances of non-compliance with laws and regulallons. We design procedures In line with our responslbililles. oullined above, to delect material misslatemenls in respect of irregularities. including fraud, The extent to which our procedures ale capable of detecling irregularities. Includlng fraud, is detailed below,
HEADWAY EAST LONDON INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF HEADWAY EAST LONDON Explanatlon a3 to the extent to whlch the audlt was considered capable of detecting irregularltles. Includlng fraud From the preliminary stage of the audit, we ensure our understanding of the enlily is up lo date. Thls Includes, bul is not limited to. current knowledge of their aclivilies, the business and control environmenls, and their compliance wilh Ihe applicable legal and regul810ry frameworks. This information supporls our risk identification and Ihe subsequent design of audlt procedures to miligale those iisks. ensuring thal the audit evidence obla ined Is sufficienl and appropriate lo support our opinion. In response lo the risks identified, specific to this entity, we deslgned procedures which included, bul were not limlted lo.. Enqulry of managemanl and those charged with govemance around actual and polenllal liligallon and clalms; Reviewing minutes of meetings of thos8 charged wllh governance, If avallable. R8viewing financlal statements dlsclosures and testing to supporting documentation lo assess compliance wilh applicable laws and regulallons- AudSllng the rlsk of management override of controls. including through tasllng journal 8nlrl8s aThJ olher adjustments for appropriateness. and evalualing Ihe bus5ness ratlonale for slgnificant transactions oulslde the normal course of buslness. There are Inherent Ilmllallons in the audit procedures described above and the further removed non-compliance with laws and regulations are from the 8venls and transactlons reflected In Ihe financial sl8lem8nls, the less Ilkely we would become aware of it. Also, the risk of not delecling a malerial misstalemenl due to fraud is high8r than the risk of not delecling one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional mlsrepresenlalions, or Ihrough collusions. There is always the unavoldable risks Ihal malerial misslalemenls in the financial slalemenls may nol be detected despile the audit being properly perfcfmed In accordance with UK Audiling standards. A furlher description of our responsibilities is avallable on Ihe Financial Reporling Council's websit8 al.. htlps:11 .frc.org.uklaudilorsresponsibililies. This description forms part of our audilorfs report, Use of our report Thls report Is made solely lo the char5ty's truslees, as a body. In accordanc6 wilh Part 4 of Ihe Charllles (Accounts and Reports) Regulalions 2008. Our audll work has been underlaken so Ihal we mlghl slate to the charily's trustees those matters we are requlred lo slate lo Ihem Sn an auditor's report and for no olh8r purpose. To the fullest exlenl permitted by law, we do nol accepi or assume responsibilily lo anyone other Ihan Ihe charity and Ihe charlly's Iwslees as a body, for our audit work, for Ihis report, or for the opinlons we have formed. Davld Hynes (Senlor Statutory Audltor) For and on behalf of BK Plus Audlt Llmlted Oakingham House Frederick Place High Wycomb8 Buckinghamshire HP11 1JU
HEADWAY EAST LONDON STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025 Current financial year Unrestrlcted Restrlcted funds funds 2025 2025 Total Total 2025 2024 Notes Donations and legacies Charitable activities Other Iradlng activities Investments 101.692 1,893,073 21.432 6,128 459,054 560,746 1,893,073 21,432 8,128 479,963 1,748,461 13,708 3,175 Total Income 2,022,325 459,054 2.481,379 2,245,307 Raislng funds 80,452 80,452 154,405 Charitable activities 1.869,721 468,812 2,338,533 2,156,613 Total expendlture 1,950,173 468,812 2,418,985 2,311,018 Net Incomel(expendltura) for th8 yearl Net movem8nt In funds 72.152 (9,758) 62,394 (65,711) Fund balanc8S 811 April 2024 490,026 39,566 529,592 595,303 Fund balances at 31 March 2025 562,178 29.808 591,986 529,592 The slalement of financial acllvilies includes all gains and losses recognised in Ihe year. All income and expendilure derive from continuing aclivilies. The statement of financial aclivilies also compli8s wilh the requifemenls for an income and expendllure account under Ihe Companies Act 2006.
HEADWAY EAST LONDON STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025 Prlor flnanclal year Unreslricted Restrlcted funds funds 2024 2024 Total 2024 Noles Donalions and legacies Charitable activities Olh8r trading aclivilies Investments 96.426 1,748,461 13,708 3.175 383.537 479,963 1,748,461 13,708 3,175 Total Income 1,861,770 383,537 2,245,307 Raising funds 154,405 154,405 Charitable acllvilies 1.718,254 438,359 2,156,613 Total expendltur6 1,872,659 438,359 2,311,018 Net {expendlture}Ilncome for the yearl Net movement In funds {10,889) (54,822) (65,711) Fund balances al l April 2023 500,915 94,388 595,303 Fund balanc88 at 31 March 2024 490,026 39,566 529,592
HEADWAY EAST LONDON BALANCE SHEET AS AT31 MARCH 2025 2025 2024 Note8 Flxed assels Tanglbl8 assets 69,435 81,706 Current a86et8 D8btors Cash al bank and In hand 16 317,639 628,708 350,979 290,247 946,347 641,226 Cradltor8: amaunt8 falllng duè wllhln ono year 17 <423,796) (193,340) N81 curcent assets 522.'551 447,886 Total a$sets188s currant Ilablllt188 591,986 529,592 Incomè funds Reslrlcled fund8 Unreslrlcted funds 29,808 662,178 39,566 490,028 691,986 529,592 Th8 company Is enlllled lo Iha 8xemptlon from Ihe audll requlrement conlaln8d In seclk)n 477 of the Compan188 Acl 2006, for the year ended 31 March 2026, allhough an audll has been rrfed out under se¢llon 144 of Iho Charllles Act 2011. Th88e flnanclal 818temenls have been prepared In accordance wllh the provlslons appllcabl8 to companles 8ubJecl lo the small companles reglme. The financlal atemenls were 8 roved by the Trustees on .. T Russell Truste8 Company reglstratlon number 03998925
HEADWAY EAST LONDON STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 Nole Cash flows from operating activilies Cash generated froml(absorbed by) operalions 23 342,795 (97,280) Investing actlvities Purchase of tangible fixed assets Inveslment InGome reGeived {10,727) 6,128 (7,637) 3,175 Net cash used In Investlng actlvltles (4,599) (4,462) Net ca8h used In flnanclng actlvltles Net Increasel(decrease) In cash and cash equlvalents 338,Ig6 (101,742) Cash and cash equivalents al beginning ofyear 290.247 391,989 Cash and cash equlvalent8 at end of year 628,443 290,247 Relatlng to: Cash at bank and In hand Bank overdrafts included in creditors payable within one year 628,708 290,247 (265) 10-
HEADWAY EAST LONDON NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accountlng pollcle5 Charlty Informatlon Headway East London Is a private company limited by guarantee incorporated in England and Wales. Tha registered office is Bradbury House Timber Wharf, 238-240 Kingsland Road, London. E2 8AX. 4.1 Accountlng convention The financial stalemenls have been prepared in accordance with the charitrfs governing document, the Companies Act 2006, FRS 102 °The Financial Reporling Standard applicable in the UK and Republic of Ireland- { FRS 102") and the Charities SORP 'Accounling and Reporting by Charities: Stalemenl of Recommended Praclice applicable lo charilies preparin9 Iheir accounls in accordance with Ihe Financial Reporling Standard applicable in Ihe UK and Republic of Ireland (FRS 102)" (effective 1 January 2019)- The charity is a Public Benefil Entily as defined by FRS 102. The financial stalements are prepared in slerling, which is Ihe funclional currency of the charity. Monetary amounls in these financial statemenls are rounded lo the nearest £. The financial stalemenls have been prepared under the historical cosl convention. The principal accounting policies adopted are sel oul below. 1.2 Golng concern At Ihe lime of approvlng Ihe financial slalemenls. Ihe Iwslees have a reasonable expectation Ihal Ihe charity has adequate resources lo continue in operational exislence for the foreseeab18 future. Thus Ihe trustees continue to adopl the going concern basls of accounting in preparing the financial stalemenls. 1,3 Charltable funds Unreslrlcled funds are avallable for use at the discretion of Ihe Iruslees in furtherance of their charllable objectives. Reslricted funds are subject lo speclfi¢ conditions by donors or grantors as to how Ihey may be used. The purposes and uses of the reslricted funds are set out in Ihe notes lo the financial slatemenls, Endowmenl funds are subject lo speclfic condllions by donors that Ihe capltal must b8 mainlalned by the charity. 1,4 Income Income is recognised when the charily is legally enlilled lo it after any perfomiance conditions have been met, Ihe amounls can be measured reliably, and it is probable Ihal income will be received, Cash donallons are recognlsed on receipl. Olher donations are recognlsed once the charity has baen nollfied of Ihe donallon. unless performance conditions require deferral of the amount. Income lax recoverab18 In relation lo donations rec8ived under Gift Aid or deeds of covenant is recognised al the tim8 of the donation. Legacies are recognised on receipt or otherwise If Ihe charily has been notified of an impending dislribution, Ihe amount Is known, and receipl is expected. If the amounl is nol known, Ihe legacy is Irealed as a conlingenl asset.
HEADWAY EAST LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accountlng pollcles (Contlnued) 1.5 Expendltur6 Expendlture Is recognised once there is a legal or conslructive obligation to transfer economlc benefit to a Ihird party, It Is probable that a transfer ol econornlc benefits will b8 requlred In settlement, and the amount of Ihe obligation can be measured reliably. Expendllure is classSfied by acllvlty. The costs of each activity ar8 mada up of the total of dIrt costs and shared costs, Includlng support cosls involved in undertaking each activity. Direct costs atlribulab18 to a sing18 acllvily are allocated directly lo that activity. Shared costs which contribute to more than on8 activity and support costs which aré nol atlribulable lo a single activity are apporlioned belween those aGlivities on a basis consistent with the use of resources. Central staff costs are allocaled on the basis of lime spent. and depreciation charges are allocaled on the portion of the assel's use. 1.6 Tanglble flxed asset8 Tanglble fixed assets are Initially measured al cost and subsequently measured at cosl or valualion, nel of depreclatlon and any impalrment losses. Depreclation Is recognlsed so as to write off the cost or valualion of assets less Ih8ir residual values over their useful Ilves on Ihe following bases: Freehold land and bulldings Plant and equlpment Fixtures and fittings Computers Over Ihe life of the lease 250/0 slraight Ilne 25 % slralght Ilne 250kn slralght line The gain or loss arising on the disposal ol an assel is detérmined as the difference between Ihe sale proceeds 8nd the carrying value of the asset, and is recognised in the sla18m8nt of financial aclivilies. 1.7 Impalrment of flxed assets At each reportlng end dat8, th8 charity reviews the carrying amounls ol Ils tangible ass81s to delermln8 whether there Is any Indicalion Ihal those assels have suffered an Impairm8nt loss. If any such Indkallon exists, the recoverabl8 amount of Ihe asset is estimaled in order to deteimine the exlenl of the Impairmenl loss (if any>. 1.8 Cash and cash equlvalents Cash and cash equivalenls include cash In hand, deposits held al call with banks, other short-lerm liquld Inveslments with origlnal malurilies of Ihree monlhs or less. and bank overdrafts. Bank overdrafts are shown wlthln borrowings in current liabllllies. 1.9 Flnanclal Instruments The charily has e18Cted to apply the provisions of Section 11 'Baslc Flnancial Inslrumenls, and S8Ctlon 12 'Olher Financial InslTuments Issues, of FRS 102 lo all of its financial inslrumenls. Flnanclal Inslrumenls ar8 recognised In the charity'5 balance sheet when the charity becomes party to the conlraclual provlslons of the inslrument. Financlal assets and liabililles are offset, wilh the net amounts presented in Ihe financi81 slatemenls, when there is a legally enforceable right lo sel off the recognised amounts and there is an intention lo settle on a nel basis or to realise the asset and setll8 the liability simullaneously. 12-
HEADWAY EAST LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounllng pollcles (Contlnued) Baslc flnanclal assets Basic financial assets, which include debtors and cash and bank balanc8s, are initially measured at Iransaclion price including transaction costs and are subsequently carried al amortised cost uslng the effeclive interesl m61hod unless the arrangement constitutes a financlng transaction, wheré Ihe transaction Is measured at the present value of the fulure recelpis discounled at a market rale of Interest. Financial assets classlfied as recelvable wilhin one year are not amortlsed. Bas1¢ flnanclal Ilabllltles Basic financlal liabilities. including credltors and bank loans are Initially recognised at transaction price unless th8 arrangement conslilules a financing Iransaclion, where the d8bt instrument is measured at the present value of th8 future paymenls discounted at a market rale of interesl. Financial liabililles classified as payabla wilhln one year are nol amortised. Debt Inslruments are subsequenlly carried at amortised rx)sl, using th8 effective inleresl rat6 melhod. Trade creditors are obligalions lo pay for goods or seNices that have been acquired in the ordlnary course of operations from suppliers. Arnounls payable are classified as current liabilities if paymenl is du8 wilhin one year or less. If not, Ih8y are presented as non-currenl liabilities. Trade credilors are recognised initially al transaction price and subsequently measured al amortised cosl using the effective Inleresl method. Derecognltlon of Ilnanclal liabilltles Flnancial Ilabililles are derecognised when Ihe charily's conlraclual obligalions expire or are discharged or cancelled. 1.10 Employee beneflts The cost of any unused holiday enlitlement is recognised in the period in which the employee's servlces are received. Termlnallon benefits are recognlsed immedialely as an expense when Ihe charity is demonslrably commSlled lo lermlnate the employment of an employee or lo provide termination benefils. 1.11 Retlremont beneflts Paymenls to defined contribullon reliremenl benefit schemes are charged as an expense as they fall due. 13-
HEADWAY EAST LONDON NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Critical accountlng estlmales and Judgements In the applicalion of th8 charilrfs accounting policies, the Irustees are required lo make judgements, estimates and assumplions about the carrying amount of assets and liabilities Ihat are nol readily apparent from other sources. The eslimates and associated assumplions are based on historical experience and other factors Ihat are consldered to be relevant. Actual results may differ from these estimates. The estimales and underlying assumplions are rewewed on an ongoing basls. Revisions lo accounting eslimales are recognised in the period in which the eslimale is revised where Ihe rèvision affects ClY that period, or in Ihe period of the revision and future periods where Ihe revislon affec15 both current and future periods. Key sources of estimation uncertalnty The estimates and 8ssumpiions which have a significant rlsk of causing a material adjustment lo the carrying amount of assets and liabilities are as follows.. Bad debt provlslon The trustees assess the recoverability of trade receivables al each reporling dale and recognise a provision for Impalrmenl where there Is oblective evldence Ihal the full amount may not be recoverable. The Iruslees make their assessment on the basis of past experlence and speclfic clrcumslances affecllng Indlvldual debtors. The trustees belleve the provlslon lor bad debls recognised wilhln the financial statements Is appropriate at the reporting date. Depreclatlon The esllmaled useful Ilves and residual values of langibl8 assets are reviewed annually, considering factors such 8S technological advancements, changes in market demand. and expected usage. Deprecialion melhods and rates applled reflect management's besl eslimales of how th8 asset's economic b8n8fits wlll be consumed. Chang8s lo Ihes8 assumpllons could result in material diff8rèncas In depreclatlon expense recognlsed In future perlods. Donallons and legacles Unrestrlcted Reslrlcted funds funds Total Unrestrlcted funds Reslrict8d funds Total 2025 2025 2025 2024 2024 2024 Donations and glfls Grants Olher 580 69,485 31,627 21,207 430,425 7,422 21,787 499.910 39.049 58,892 4.820 32.714 58,892 388,357 32,714 383,537 101.692 459,054 560.746 96.426 383,537 479,963 14-
HEADWAY EAST LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Charltable 8Ctlvltles For Ihe year ended 31 March 2025 Feè Incomè Transport CSW s•rvlc•s Income Theraple8 Total 2025 Total 2024 2025 2025 2025 2025 Sales wilhin charitable activities 1.158.810 285,140 328,891 120.232 1,893,073 1,748,461 For the year ended 31 March 2024 F•e Income Transport CSWs•rvlc•s Incomè Th8rapl•• Tolol 2024 Sales within charilable activities 1,091,212 217,316 311.579 128,354 1,748,461 Income from olher Iradlng activilles Unreslrlcted Unrestrlcted funds funds 2025 2024 Fundraising events 21,432 13,708 Incomo from Investments Unrestricted Unrestricted funds funds 2025 2024 Inleresl receivable 6,128 3,175 15-
HEADWAY EAST LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Ralslng funds Unrestrlcted Unrestricted funds fund5 2025 2024 PremSses and office costs Projects cosls Communlcallons costs Legal and professional costs Staff costs 5.652 575 290 300 73,635 51,544 102,861 Fundraising and publiclty 80,452 154.405 Expendlture on charltable activities Charltable Charltable expendlture expendlture 2025 2024 Dlrect costs Staff costs Depreciation Conlraclors Premises and office costs Servlce Iransport cosls Legal and professional costs Communicallon costs Olher costs PLJblic engagemenls Costs Members, aclivities Project costs 1,385.719 8,038 12,225 214,890 284,042 3.800 11,682 1,274,310 69.705 243,421 209,185 30,579 15,101 65,629 22.919 58,301 2,024,326 1,865,220 Share of support and governance costs {see note g) Support Governance 261.861 52,346 249,744 41,649 2,338,533 2,156,613 Analysls by fund Unrestricted funds Restricted funds 1.869,721 468.812 1,718,254 438,359 2.338.533 2.156,613 16-
HEADWAY EAST LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Support and governance costs allocated to actlvllles Support Governance costs costs 2025Support costs Governanc6 costs 2024 Slaff costs Depreciation Communlcation costs Legal and prof8ssional costs Olher cos15 Premises and office costs Audll fees Service transport costs 98,019 14,960 20,310 118,329 14,960 153.621 21.932 31,662 185,283 21,932 4,861 4,861 6,219 6,219 29,725 2.000 22,936 31.725 22.936 22.895 15.450 22,895 15,450 114,257 114.257 7,100 29.629 85 9,900 29.714 9,900 7,100 39 39 261,861 52.346 314,207 249,746 41,647 291,393 Analysed between: Charitable activities 261,861 52,346 314.207 249,746 41,647 291,393 261,861 52,346 314,207 249,746 41,647 291,393 O Nel movement In funds 2025 2024 The nel movemenl In funds Is staled after chargingl(credlling)- Fees payable to the charitys auditor- for the audit of Ihe ¢harilWs financAal slalements for olher financial services Depreciation of owned langlble fixed assets 5,775 5,700 22,998 5.500 5,100 21.932 11 Audltorfs remunarallon Fees payable lo the charity's audilor and associates: 2025 2024 For audlt servlces Audit of the financlal statements of the charily 7,100 6,750 For other servlces All olher non-audil services 5.7C 5,100 12 Trustees None of Ihe Iruslees (or any persons connected wilh Ihem) received any remuneration or benefits from the charity during the year. 17-
HEADWAY EAST LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 13 Employees The 8verag8 monthly number of employees during Ihe year was: 2025 Number 2024 Number Part-lime Full-lime Casual 31 20 30 20 Total 55 53 Employment costs 2025 2024 Wages and salaries Social security costs Olher pension cosls 1,349,837 108,265 99,271 1,351,142 117,648 93,664 1,557,373 1,562,454 The average number of full lime equivalent employees for the year was 25 (2024: 27), The number of employees whose annual remuneration was more Ihan £60,000 is as follows: 2025 Number 2024 Number 14 Taxatlon The ch8ri1y is exempl from laxalion on its activilies because all ils income is applied for charltable purposes. 18-
HEADWAY EAST LONDON NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 15 Tanglble Ilxed assets Freehold land and bulldlng8 Plant and Flxtures and equlpmont titllng$ Compulers Tolal Cost Al 1 April 2024 Additions 380,876 1,732 71,853 1,689 12,059 7,306 48,496 513,284 10,727 At 31 March 2025 382.608 73.542 19,365 48,496 524,011 Depreclatlon and Impalrment At 1 April 2024 Depreclatlon charged in the year 315,259 15,076 60,565 4,843 12,059 288 43,695 2,791 431.578 22,998 At 31 March 2025 330.335 65,408 12,347 46,486 454,576 Carrying amount At 31 March 2025 52,273 8,134 7.018 2,010 69,435 At 31 March 2024 65,617 11,288 4,801 81,706 16 Debtors 2025 2024 Amounts falling due wlthln one year: Trade debtors Other deblors Pr&paymenls and accrued income 211,163 17,500 88,978 118,593 17.500 214,886 317,639 350,979 17 Credltors: amounts falllng due wlthln one year 2025 2024 Bank overdrafts Other taxation and social security Deferred income Trade credilors Olher creditors Accruals 265 24.461 166,010 93,239 3,622 136.199 28,088 93,129 2,904 69,219 423,796 193,340 Bank overdrafts above are secured by way of a charge over the assels of the charily. 19-
HEADWAY EAST LONDON NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 18 Retlrement beneflt schemes 2025 2024 Deflned contrlbutlon schemes Charge to profit or loss in respecl of defined contribution schemes 99,271 93,664 The charily operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme 8re held separately from those of the charily in an independenlly administered fund. 19 Unrestrlct8d funds The unreslricled funds of Ihe charity comprise Ihe un8xpended balances ofdonalions and grants whlch are not sublect lo specific condilions by donors and grantors as lo how Ihay may be used. These include designated funds which have been sel aside oul of unrestricted funds by Ihe Iwslees for specific purposes. Al 1 Aprll 2024 Incomlng resources Re8ource8 At 31 March expended 2025 General funds 490,026 2,022,325 (1,950,173) 562,178 Previous year: At 1 Aprll 2023 Incomlng resources Resources At 31 March expended 2024 Gen8ral funds 500.915 1,861,770 (1,872,659) 490,026 -20-
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HEADWAY EAST LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 21 Operatlng lease commllments Al tha reporting end dale the charity had oulslanding commitments for future minimum leas8 payment5 under non-cancellable operaling leases. which fall due as follows: 2025 2024 Wilhln one year Belween two and five years 90,000 174,167 90,000 264,167 264,167 354,167 22 Relaled party transactlons The charity received donalions from ils trustees and other related partles durlng Ihe year which lolalled £180 (2024.. £180) 23 Cash generated from operatlons 2025 2024 Surplusl(deflcil) for Ihe year 62,394 (65,7111 Adjustments for.. Investment income recognised in statement of financial aclivilies Depreclatlon and Impairmenl of langible fixed assets (6.128) 22,998 (3,175) 21,932 Movements In worklng capllal". Decreasel(increase) In debtors Increase In credilors Increase In deferred incom& 33,340 64,181 166.010 (127,804) 77,478 Cash generated froml(absorbed by) operations 342,795 (97,280) -22-