OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator. This document is also available as Markdown.

← Centre For Local Economic Strategies Limited

2025-06-30-accounts

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Company registration number: 04242937 Charitable company registration number: 1089503

Centre for Local Economic Strategies Limited

known as

CLES Limited

(A company limited by guarantee)

Annual Report and Financial Statements

for the Year Ended 30 June 2025

Menzies LLP Statutory Auditor One Express 1 George Leigh Street Manchester M4 5DL

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Contents

Reference and Administrative Details 1 to 2
Trustees' Annual Report (Incorporating the Directors' Report) 3 to 9
Independent Auditors' Report 10 to 14
Statement of Financial Activities 15
Balance Sheet 16
Statement of Cash Flows 17
Notes to the Financial Statements 18 to 34

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Reference and Administrative Details

Trustees C Wilkins Cllr P Dennett N Bolger, (resigned 12 March 2025) A Donald, (resigned 12 March 2025) Cllr D P Meller Cllr B Craig, (resigned 17 September 2025) R Deegan H Thomas J Dromey S Halliwell N Wood, (appointed 11 June 2025) C Wilson, (appointed 11 June 2025) G Brown, (appointed 11 June 2025) Cllr G White, (appointed 17 September 2025) Secretary S L Longlands Senior Leadership Team: Chief Executive Officer S L Longlands Other Members of the Team T Lloyd Goodwin S MacDonald (resigned 1 September 2024) Charitable company Registration 1089503 Number Company Registration Number 04242937 Principal and Registered Office 52 Oak Street Swan Square Manchester M4 5JA Auditor Menzies LLP Statutory Auditor One Express 1 George Leigh Street Manchester M4 5DL

Page 1

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Reference and Administrative Details

Solicitors:

Bankers

Bates, Wells & Braithwaite 61 Charterhouse Street London EC1M 6HA Co-operative Bank PLC 1 Balloon Street Manchester M60 4EP

Page 2

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Trustees' Annual Report (Incorporating the Directors' Report)

The Trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 30 June 2025.

Objectives and activities

Objects and aims

The objectives of the Charity are to:

In shaping our objectives for the year and planning our activities, we have been informed by the Charity Commission guidance on public benefit and many of our publications and activity is free to view and download

Mission and Aims

Established in 1986, CLES is a Manchester based charity working towards a future where local economies benefit people, place and the planet. This will happen when wealth and power serve local people, rather than the other way around, enabling communities to flourish. We have an international reputation for our pioneering work on community wealth building and are recognised as the curators of the movement in the UK.

We act as a critical friend to local places helping to bring anchor organisations together, connect them to local economies and together devise solutions and deliver change. We use this experience of delivering change on the ground to advocate for change nationally. We do this in a number of ways.

Page 3

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Trustees' Annual Report (Incorporating the Directors' Report)

Public benefit

The Trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

CLES delivers a range of activities on economic development and community wealth building across the UK and Ireland. CLES takes account of the relative public benefit expected to flow from work, as well as considering the financial viability of the activities. During 2024/25 we continued to work closely with local authorities, civil society organisations and other charities alongside our CLES members to help deliver our charitable aims and organisational objectives.

Review of the year - Key highlights

During 2024/25, CLES’s work was once again diverse and wide ranging in pursuit of our charitable objectives. Key highlights from the year include:

A key moment for our work was the general election on the 4th July 2024 which saw the election of a new Government. Subsequently we updated our guidance papers on community wealth building for local councillors in the UK. In addition, we wrote a briefing paper for new MPs on community wealth building.

Community wealth building continues to be a an overarching theme for our work in 2025/26 and we have continued to worked hard to support local authorities and other organisations to develop and implement community wealth building in order to help rewire and relocalise economies.

Longer term strategic programmes of work

During 2024/25 we have also continued to develop and expand the number of longer term strategic programmes of work at CLES. These include:

Page 4

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Trustees' Annual Report (Incorporating the Directors' Report)

Impact : this programme of work has been successful in helping to influence the local growth plans of the combined authorities, particularly in the context of the Government’s publication of a new Devolution Act. The RORE’s work in supporting the engagement of local communities in people led policy has been an important opportunity to understand the continued challenges at a local level including cost of living and housing pressures. In addition, we have worked closely with our partners in combined authorities to provide new analysis and understanding of the social economy, a theme that will continue in the future years of the RORE.

Impact : This project is helping to create a new narrative for public policy makers on the close relationship between health and health investment alongside stronger local economies. It is also providing a blueprint about how health can be seen as an essential component of a strong thriving economy.

Impact : This project is beginning to provide new intelligence, insights and perspectives about progression which we hope will help to inform the piloting phase next year and inform the work of policy makers alongside employers in Scotland longer term.

Financial review

The financial figures for 2024/25 show that CLES made a surplus of £61,433 for the year (2023/24: Loss of £135,340).

At 30 June 2025 the charitable company holds reserves of £244,370 (2024: £182,937) of which £37,407 (2024: £4,015) are held in restricted funds. A further £4,539 (2024: £4,062) are held in tangible fixed assets, leaving £202,424 (2024: £174,860).

To monitor financial risks within the organisation, CLES continues to review its financial situation on a monthly basis the Senior Leadership Team and on a quarterly basis with the Board of Trustees and Directors.

Page 5

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Trustees' Annual Report (Incorporating the Directors' Report)

Principal funding sources

CLES has a diversity of funding sources. This includes:

Grant awards from philanthropic funders, academic institutions and other funders who want to support CLES’ charitable mission and ideas.

Commissioned activities from local government, which support the charitable aims and allow us to explore, develop and share practice amongst the wider community and public. This commissioned activities are secured both through commissioned tenders (where there is clear alignment with our mission and objectives) and proactively through organisations wanting us to directly support their efforts to deliver community wealth building and inclusive economic change.

We also receive donations in support of our events and speaking engagements

New relationships which cover different geographies and variants of the charities core charitable purposes are also actively pursued on an ongoing basis.

Risk management

The trustees and senior leadership team have a risk management strategy and approach which comprises:

We review cashflow on a monthly and quarterly basis and have an ongoing process of issuing sales invoices and proactive debt chasing. Trustees discuss the quarterly management accounts, and regular meetings and discussions take place separate to the formal board meetings. Key risks ahead include:

Changes in public sector expenditure : Given the profile of our income, much of which is with government organisations, our exposure to changes in public sector expenditure is a key risk factor for CLES. A key element of managing this risk, is a regular review of incoming resources, projected forward 18 months. In addition, we continue to explore ways to diversify our funding relationships so that they increasingly include philanthropic and civil society organisations as well as combined authorities. 2023/24 has seen a decrease in contract income which will be something we will be monitoring closely in 2024/25.

Economic and political context : As an organisation concerned with social justice and the economy, the political and policy context has a significant influence on our work and who funds it. 2023/24 was a year during which there was significant political and economic turbulence both in the UK and international and this has had a direct impact on our economic fortunes. This is a risk that is endemic to our business but looking forward there are reasons to be optimistic given the change in Government in the UK which has created new opportunities for research and advocacy to fulfil our charitable mission.

Staff recruitment and retention is a ongoing risk for CLES’ work. The labour market for our work is highly competitive at the current time. CLES works hard to benchmark our salaries to ensure that they remain competitive alongside good terms and conditions, with opportunities for staff development. We also have become an accredited living hours and living wage employer and continue to implement a four day week.

Page 6

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Trustees' Annual Report (Incorporating the Directors' Report)

Going concern

2024/25 has been a much more positive year for CLES and a surplus of £61,433 and the trustees consider that the charity has adequate resources to continue in operational existence for the foreseeable future.

The Board of Trustees, supported by the Finance Committee have reviewed the budget for the year ahead alongside the cash flow forecast and continue to monitor quarterly financial reports to ensure that we are on track for the year ahead. Trustees are also satisfied that work has been done to ensure that the Senior Leadership Team are continuing to monitor income and costs on a weekly and monthly basis.

As CLES has a range of different income sources and funding partners, we are working on an ongoing basis to evaluate new opportunities as they become available as well as proactively speaking to potential funders about our work and proposals for the future.

Given that there is a degree of uncertainty about the political and economic context in the UK, Trustees have also agreed to review our risk register as a standing item on our quarterly agenda and have instructed the senior leadership team to explore scenario planning for the future.

The Trustees supported the restructure of the organisation in 2024/25 and we feel that this has helped to stabilise the team and income generation but continue to work closely with the senior leadership team to monitor staffing resources and costs.

There are no material uncertainties about the Charity's ability to continue, therefore, the accounts have been prepared on a going concern basis.

Structure, governance and management

Nature of governing document

CLES is a company limited by guarantee governed by its memorandum and articles of association dated 28 June 2001, as amended by Special Resolution dated 16 December 2010 and 13 August 2012. The byelaws were amended on 7 May 2015.

Trustee recruitment and retirals

CLES has a well-established structure of governance, which has served the organisation effectively in recent years. In the last year there has been some movement in the Board and a process launched during 2022 to recruit new board members to the organisation. This process has been completed successfully and the new board members have now successfully completed their first year of service to the Board. The annual retirals meeting detailed in our governance document ensures a regular review of board membership.

Chief Executive

The day to day management of the organisation is delegated to the Chief Executive, Dr Sarah Longlands who works in partnership with the senior leadership teams to run the organisation.

Page 7

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Trustees' Annual Report (Incorporating the Directors' Report)

Organisation of Board meetings

The full board of Trustees meets four times a year. Meetings concur with end of quarter financial work and reporting and usually last up to 2 ½ hours. They are usually hybrid meetings and are mainly held in Manchester with the option to join online (reflecting the geographical diversity of Trustees)

The Chair of Trustees meets regularly with the CEO on a one to one basis. In these meetings ongoing operational considerations are discussed, as well as longer term goals in relation to organisational objectives and business plan. The agenda and content for any forthcoming Board meetings are also discussed.

On occasion sub-committees are formed. These look at issues raised which need a deeper consideration. In 2023/24, a finance sub committee has been formed to oversee the budget setting process, preparation of annual accounts and the annual audit.

Non delegated authority includes Governance policy, staff terms and conditions, annual budget, remuneration of the CEO. Delegated areas include all areas of day to day operations, recruitment, remuneration of staff (excluding the CEO).

Pay and remuneration for senior staff

The CEO’s pay and remuneration is decided by the Board. This takes place via an appraisal process, conducted by the Chair of the Board.

All other senior staff appraisals are conducted by the CEO and line managers, with recommendations going to the board for assessment in accordance with annual budget considerations and negotiations with the recognised Trade Union in line with CLES’ recognition agreement with Unite.

Page 8

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Statement of Trustees' responsibilities

i e v i i t ing resources and application of resources, including its income and expenditure, of the charitable company for that period. In preparing these financial statements, the

i

judgements and estimates that are reasonable and prudent;

material

cial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

.........................................

C Wilkins Trustee

26-Mar-2026

Page 9

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Independent Auditor's Report to the Members of Centre for Local Economic Strategies Limited

Opinion

We have audited the financial statements of Centre for Local Economic Strategies Limited (the 'charitable company') for the year ended 30 June 2025, which comprise the Statement of Financial Activities (including Income and Expenditure Account and Statement of Total Recognised Gains and Losses ), Balance Sheet, Statement of Cash Flows, and Notes to the Financial Statements. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Page 10

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Independent Auditor's Report to the Members of Centre for Local Economic Strategies Limited

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Annual Report (Incorporating the Directors' Report).

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Statement of Trustees' responsibilities (set out on page 8 and 9), the Trustees 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 charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 11

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Independent Auditor's Report to the Members of Centre for Local Economic Strategies Limited

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

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

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and addressing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

Page 12

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Independent Auditor's Report to the Members of Centre for Local Economic Strategies Limited

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

Page 13

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Independent Auditor's Report to the Members of Centre for Local Economic Strategies Limited

Use of our report

This report is made solely to the charitable company's Trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's 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 charitable company and its Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

...................................... 83F726A2B19F 426... Sue Hutchinson FCCA (Senior Statutory Auditor) For and on behalf of:

Menzies LLP Statutory Auditor One Express 1 George Leigh Street Manchester M4 5DL

27-Mar-2026 Date:.............................

Page 14

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Statement of Financial Activities for the Year Ended 30 June 2025 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Charitable activities
4
Investment income
5
Total income
Expenditure on:
Charitable activities
6
Total expenditure
Gains/losses on investment assets
Net income/(expenditure)
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
21		 Unrestricted
funds
£
-
706,536
29
706,565
(678,522)
(678,522)
(2)
28,041
28,041
178,922
206,963		 Restricted
funds
£
-
526,303
-
526,303
(492,911)
(492,911)
-
33,392
33,392
4,015
37,407		 Total
2025
£
-
1,232,839
29
1,232,868
(1,171,433)
(1,171,433)
(2)
61,433
61,433
182,937
244,370		 Total
2024
£
10,555
1,085,730
1,363
1,097,648
(1,232,988)
(1,232,988)
-
(135,340)
(135,340)
318,277
182,937

All of the charitable company's activities derive from continuing operations during the above two periods. The funds breakdown for 2024 is shown in note 21.

The notes on pages 18 to 34 form an integral part of these financial statements. Page 15

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

(Registration number: 04242937) Balance Sheet as at 30 June 2025

2025 2024
Note £ £
Fixed assets
Tangible assets 13 4,539 4,062
Investments 14 - 2
4,539 4,064
Current assets
Debtors 15 224,688 401,363
Cash at bank and in hand 16 347,490 143,020
572,178 544,383
Creditors: Amounts falling due within one year 17 (194,747) (210,710)
Net current assets 377,431 333,673
Total assets less current liabilities 381,970 337,737
Creditors: Amounts falling due after more than one year 18 (137,600) (154,800)
Net assets 244,370 182,937
Funds of the charitable company:
Restricted income funds
Restricted funds 21 37,407 4,015
Unrestricted income funds
Unrestricted funds 206,963 178,922
Total funds 21 244,370 182,937

The financial statements on pages 15 to 34 were approved by the Trustees, and authorised for issue on .................... and signed on their behalf by:

......................................... C Wilkins Trustee

26-Mar-2026

The notes on pages 18 to 34 form an integral part of these financial statements. Page 16

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Statement of Cash Flows for the Year Ended 30 June 2025

Note
Cash flows from operating activities
Net cash income/(expenditure)
Adjustments to cash flows from non-cash items
Depreciation
Investment income
5
Working capital adjustments
Decrease/(increase) in debtors
15
Decrease in creditors
17
(Decrease)/increase in deferred income
18
Net cash flows from operating activities
Cash flows from investing activities
Interest receivable and similar income
5
Purchase of tangible fixed assets
13
Disposal of investments in subsidiary undertakings
Net cash flows from investing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 1 July
Cash and cash equivalents at 30 June		 2025
£
61,433
2,824
(29)
64,228
176,675
(4,086)
(29,077)
207,740
29
(3,301)
2
(3,270)
204,470
143,020
347,490		 2024
£
(135,340)
2,735
(1,363)
(133,968)
(92,315)
(5,422)
6,009
(225,696)
1,363
(3,680)
-
(2,317)
(228,013)
371,033
143,020

All of the cash flows are derived from continuing operations during the above two periods.

The notes on pages 18 to 34 form an integral part of these financial statements. Page 17

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

1 Charitable company status

The charitable company is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the Trustees is liable to contribute an amount not exceeding £1 towards the assets of the charitable company in the event of liquidation.

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with 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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

Centre for Local Economic Strategies Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Page 18

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

Going concern

2024/25 has been a much more positive year for CLES and a surplus of £61,433 and the trustees consider that the charity has adequate resources to continue in operational existence for the foreseeable future.

The Board of Trustees, supported by the Finance Committee have reviewed the budget for the year ahead alongside the cash flow forecast and continue to monitor quarterly financial reports to ensure that we are on track for the year ahead. Trustees are also satisfied that work has been done to ensure that the Senior Leadership Team are continuing to monitor income and costs on a weekly and monthly basis.

As CLES has a range of different income sources and funding partners, we are working on an ongoing basis to evaluate new opportunities as they become available as well as proactively speaking to potential funders about our work and proposals for the future.

Given that there is a degree of uncertainty about the political and economic context in the UK, Trustees have also agreed to review our risk register as a standing item on our quarterly agenda and have instructed the senior leadership team to explore scenario planning for the future.

The Trustees supported the restructure of the organisation in 2024/25 and we feel that this has helped to stabilise the team and income generation but continue to work closely with the senior leadership team to monitor staffing resources and costs.

There are no material uncertainties about the Charity's ability to continue, therefore, the accounts have been prepared on a going concern basis.

There are also reasons to be optimistic based on our current and future pipeline of work which shows that as of the end of Quarter 1, we have obtained approximately 70% of funding for the year ahead suggesting that the market for our work has improved.

However, we will be working closely with the CLES team and Trustees to monitor costs and income on a regular basis in order to manage and mitigate these risks going forward.

There are no material uncertainties about the Charity’s ability to continue, therefore, the accounts have been prepared on a going concern basis.

Judgements and estimates

The preparation of the financial statements requires management to make certain judgements, estimates and assumptions that affect the amounts reported for assets, liabilities, revenue, and expenditure. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The items in the financial statements where these judgments and estimates have been made include:

Page 19

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

Income

All incoming resources are included in the Statement of Financial Activities when the Charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. In the following circumstances, the income is deferred and included in other creditors:

Donations

Donations from individuals and other bodies (not being of the nature of a grant) are recognised when receivable.

Grant income

Grants, whether of a capital or revenue nature, are recognised when the charity has entitlement to the funds, any performance conditions have been met and it is probable that the income will be received.

Earned income

Earned income is measured at the fair value of the consideration received or receivable for services and goods supplied, net of discounts and VAT.

Investment income

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Charitable activities

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

Page 20

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

Taxation

The charitable company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charitable company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £500.00 or more are initially recorded at cost.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate
Computer equipment Over three years
Office equipment Over five years

Fixed asset investments

Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal.

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charitable company will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Page 21

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charitable company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Fund structure

Unrestricted income funds are general funds that are available for use at the Trustees discretion in furtherance of the objectives of the charitable company.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Financial instruments

Classification

Financial assets and financial liabilities are recognised when the charitable company becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charitable company after deducting all of its liabilities.

Recognition and measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charitable company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charitable company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charitable company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Page 22

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

3 Income from donations and legacies

Donations and legacies;
Donations from companies, trusts and similar proceeds		 Total
2025
£
-
-		 Total
2024
£
10,555
10,555

4 Income from charitable activities

Research and consultancy - Fees
Research and consultancy - Grants
Membership subscriptions
Events and publications
Research and consultancy - Fees
Research and consultancy - Grants
Membership subscriptions
Events and publications
5
Investment income
Interest receivable and similar income;
Interest receivable on bank deposits		 Unrestricted
funds
General
£
598,600
69,690
27,533
10,713
706,536
Unrestricted
funds
General
£
651,353
61,583
31,033
31,244
775,213
Unrestricted
funds
General
£
29		 Restricted
funds
£
-
526,303
-
-
526,303
Restricted
funds
£
-
310,517
-
-
310,517
Total
2025
£
29		 Total
2025
£
598,600
595,993
27,533
10,713
1,232,839
Total
2024
£
651,353
372,100
31,033
31,244
1,085,730
Total
2024
£
1,363

Page 23

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

6 Expenditure on charitable activities

Research and consultancy
Membership subscriptions
Events and publications
Research and consultancy
Membership subscriptions
Events and publications		 Direct costs
£
58,286
-
6,286
64,572
Direct costs
£
105,228
854
23,280
129,362		 Direct salaries
£
654,929
5,729
10,339
670,997
Direct salaries
£
678,848
10,959
11,493
701,300		 Support costs
£
365,642
46,815
23,407
435,864
Support costs
£
337,334
43,328
21,664
402,326		 Total
2025
£
1,078,857
52,544
40,032
1,171,433
Total
2024
£
1,121,410
55,141
56,437
1,232,988

Page 24

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

7 Analysis of support costs

Support costs allocated to charitable activities

Salaries
Marketing costs
Establishments costs
Insurance
Legal and professional
Administration costs
Finance charges
Staff training and recruitment
Board expenses/meeting costs
Depreciation
Auditors fee
Allocation of governance costs
Salaries
Marketing costs
Establishments costs
Insurance
Legal and professional
Administration costs
Finance charges
Staff training and recruitment
Board expenses/meeting costs
Depreciation
Auditors fee
Allocation of governance costs		 Research
and
consultancy
£
Membership
and
subscriptions
£
196,397
26,904
33,390
3,928
35,664
4,196
3,035
357
5,721
673
33,392
3,928
3,058
360
14,974
1,762
-
-
2,401
282
-
-
37,609
4,425
365,641
46,815
Research
and
consultancy
£
Membership
and
subscriptions
£
188,293
25,794
27,696
3,258
27,184
3,198
3,233
380
10,970
1,291
25,312
2,978
5,668
667
11,530
1,356
-
-
2,325
274
-
-
35,122
4,132
337,333
43,328		 Events and
publications
£
13,452
1,964
2,098
179
337
1,964
180
881
-
141
-
2,212
23,408
Events and
publications
£
12,897
1,629
1,599
190
645
1,489
333
678
-
137
-
2,066
21,663		 Governance
costs
£
32,284
-
-
-
-
-
-
-
827
-
11,135
(44,246)
-
Governance
costs
£
30,952
-
-
-
-
-
-
-
267
-
10,000
(41,219)
-		 Total
2025
£
269,037
39,282
41,958
3,571
6,731
39,284
3,598
17,617
827
2,824
11,135
-
435,864
Total
2024
£
257,936
32,583
31,981
3,803
12,906
29,779
6,668
13,564
267
2,736
10,000
101
402,324

Page 25

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

Basis of allocation

Reference Method of allocation Salaries Estimate of time spent Marketing costs Estimate of usage (Net of any direct attribution) Property costs Estimate of usage All other costs Estimate of usage Depreciation Estimate of usage

8 Net (outgoing)/incoming resources

Net incoming/(outgoing) resources for the year include:

Operating leases - other assets
Audit fees
Other non-audit services
Depreciation of fixed assets		 2025
£
27,954
11,135
6,125
2,824		 2024
£
21,750
10,000
4,200
2,735

9 Trustees remuneration and expenses

No Trustees, nor any persons connected with them, have received any remuneration from the charitable company during the year (2024: £nil). No trustees have received any reimbursed expenses or any other benefits from the charity during the year. During the previous year, the charity paid travel expenses to two trustees totalling £1,081.

Page 26

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

10 Staff costs

The aggregate payroll costs were as follows. The restructuring costs relate to a single member of management personnel and combine statutory and contractual obligations which were agreed and settled during the financial period.

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs
Restructuring costs		 2025
£
793,955
57,990
63,949
17,950
933,844		 2024
£
812,148
89,190
65,275
-
966,613

Number of employees

The average number of employees during the year, calculated on the basis of full-time equivalent employees (FTE) and average headcount (HC) was as follows:

Employees 2025
HC
No
18
18		 2025
FTE
No
18
18		 2024
HC
No
18
18		 2024
FTE
No
18
18

The number of employees whose emoluments fell within the following bands was:

£60,001 - £70,000
£90,001 - £100,000		 2025
No
1
1		 2024
No
2
1

The total employee benefits of the key management personnel of the charitable company were £215,703 (2024 - £274,675).

11 Auditors' remuneration

Audit fee
All other non-audit services		 2025
£
11,135
6,125
17,260		 2024
£
10,000
4,200
14,200

Page 27

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

12 Taxation

The income and gains of the charitable company are exempt from taxation to the extent they are applied to its charitable activities.

13 Tangible fixed assets

Cost
At 1 July 2024
Additions
At 30 June 2025
Depreciation
At 1 July 2024
Charge for the year
At 30 June 2025
Net book value
At 30 June 2025
At 30 June 2024		 Leasehold
improvements
£
2,655
-
2,655
2,655
-
2,655
-
-		 Office
equipment
£
3,735
-
3,735
3,706
29
3,735
-
29		 Computer
equipment
£
35,893
3,301
39,194
31,860
2,795
34,655
4,539
4,033		 Total
£
42,283
3,301
45,584
38,221
2,824
41,045
4,539
4,062

14 Fixed asset investments

Shares in group undertakings and participating interests

2025 2024
£ £
- 2

During the year the subsidiary company, CLES European Research Network Limited, was dissolved. The loss on investments relates to this disposal.

15 Debtors

Trade debtors
Prepayments
Accrued income		 2025
£
91,983
13,612
119,093
224,688		 2024
£
214,445
18,595
168,323
401,363

Page 28

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

16 Cash and cash equivalents

16 Cash and cash equivalents
Cash at bank
17 Creditors: amounts falling due within one year
Trade creditors
Other taxation and social security
Pension scheme creditor
Accruals
Deferred income
Deferred income at 1 July 2024
Resources deferred in the period
Deferred income at year end
18 Creditors: amounts falling due after one year
Pension scheme creditor		 2025
£
347,490
2025
£
28,436
44,381
17,200
43,175
61,555
194,747
2025
£
90,632
(29,077)
61,555
2025
£
137,600		 2024
£
143,020
2024
£
24,447
44,454
17,200
33,977
90,632
210,710
2024
£
84,623
6,009
90,632
2024
£
154,800

Page 29

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

19 Obligations under leases and hire purchase contracts

Operating lease commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

Land and buildings
Within one year
Between one and five years		 2025
£
27,954
71,438
99,392		 2024
£
27,954
99,392
127,346

20 Pension and other schemes

Greater Manchester Pension Fund

In respect of certain long-standing employees, the charity participates in the Greater Manchester Pension Fund (GMPF), an independently administered defined benefit scheme which is externally funded and contracted out by the State Earnings Related Pension Scheme. THE GMPF is a multi-employer scheme, and in accordance with the guidance issued by the Charity Commission the charity accounts for those contributions as if it were a defined contribution scheme.

It has done so because it is unable to identify its share of the underlying assets and liabilities on a consistent and reasonable basis. Contributions are charged to the SOFA in the period in which they are payable. As there are now no active members of the GMPF, CLES has exited the scheme and the transfer of the liability has been agreed to repaid over ten years.

Employees are required to join a compulsory employer’s contributory pension. The employer’s contribution starts at the equivalent to 6% of their gross pa to the employees’ stakeholder pension scheme, a money purchase scheme.

All pension contributions are charged to the SOFA in the year in which they are payable.

Page 30

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

21 Funds

Unrestricted funds
General
General funds
Restricted funds
North Yorkshire
Robertson Trust
Birmingham City Council
Regional Action Plan
City REDI
Innovate
WMCA
Total restricted funds
Total funds
Unrestricted funds
General
General funds
Restricted
NIHR Public Health Research
Programme
Regional Action Plan
City REDI
Innovate
WMCA
Total restricted funds
Total funds		 Balance at 1
July 2024
£
Incoming
resources
£
Resources
expended
£
Other
recognised
gains/(losses)
£
Balance at
30 June
2025
£
178,922
706,565
(678,522)
(2)
206,963
-
25,000
(25,000)
-
-
-
85,000
(47,593)
-
37,407
-
46,667
(46,667)
-
-
-
226,611
(226,611)
-
-
-
44,983
(44,983)
-
-
-
98,042
(98,042)
-
-
4,015
-
(4,015)
-
-
4,015
526,303
(492,911)
-
37,407
182,937
1,232,868
(1,171,433)
(2)
244,370
Balance at 1
July 2023
£
Incoming
resources
£
Resources
expended
£
Balance at 30
June 2024
£
318,277
787,131
(926,486)
178,922
-
1,148
(1,148)
-
-
269,810
(269,810)
-
-
18,301
(18,301)
-
-
9,175
(9,175)
-
-
12,083
(8,068)
4,015
-
310,517
(306,502)
4,015
318,277
1,097,648
(1,232,988)
182,937		 Balance at 1
July 2024
£
Incoming
resources
£
Resources
expended
£
Other
recognised
gains/(losses)
£
Balance at
30 June
2025
£
178,922
706,565
(678,522)
(2)
206,963
-
25,000
(25,000)
-
-
-
85,000
(47,593)
-
37,407
-
46,667
(46,667)
-
-
-
226,611
(226,611)
-
-
-
44,983
(44,983)
-
-
-
98,042
(98,042)
-
-
4,015
-
(4,015)
-
-
4,015
526,303
(492,911)
-
37,407
182,937
1,232,868
(1,171,433)
(2)
244,370
Balance at 1
July 2023
£
Incoming
resources
£
Resources
expended
£
Balance at 30
June 2024
£
318,277
787,131
(926,486)
178,922
-
1,148
(1,148)
-
-
269,810
(269,810)
-
-
18,301
(18,301)
-
-
9,175
(9,175)
-
-
12,083
(8,068)
4,015
-
310,517
(306,502)
4,015
318,277
1,097,648
(1,232,988)
182,937		 Balance at
30 June
2025
£
206,963
-
37,407
-
-
-
-
-
37,407
244,370
4,015
182,937

Page 31

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

Description of Restricted Funds

Scottish Government

Secondment to the Scottish Government to support the development of Community Wealth Building in a Scottish context.

Power to Change Funding directly via OSF as a legacy funding arrangement as they withdrew from the UK.

NIHR

Public Health research programme

LGIU

Future of economic development

Alex Ferry Foundation

Research into Freeports policy in England.

Columbia Threadneedle

Investigation into women's experience of the economy in Leeds.

Regional Action Plan Action plan for a new economy

Barrow Cadbury - Anchor Network Network facilitation

City REDI

Local Policy Innovation Partnership (LPIP) Co-ordinating Hub is hosted by City-REDI at the University of Birmingham, doing place-based research.

Innovate

Oldham Green New Deal Delivery Partnership will focus on delivering the low carbon infrastructure Oldham needs to get to Net Zero

WMCA

Secondment to West Midlands Combined Authority to lead on community wealth building in the West Midlands

Page 32

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

22 Analysis of net assets between funds

Tangible fixed assets
Current assets
Current liabilities
Creditors over 1 year
Total net assets
Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Creditors over 1 year
Total net assets
23 Analysis of net funds
Cash at bank and in hand
Net debt
Cash at bank and in hand
Net debt		 Unrestricted
funds
General
£
4,539
534,771
(194,747)
(137,600)
206,963
Unrestricted
funds
General
£
4,062
2
540,368
(210,710)
(154,800)
178,922
At 1 July 2024
£
143,020
143,020
At 1 July 2023
£
371,033
371,033		 Restricted
funds
£
-
37,407
-
-
37,407
Restricted
funds
£
-
-
4,015
-
-
4,015
Financing cash
flows
£
204,470
204,470
Financing cash
flows
£
(228,013)
(228,013)		 Total funds at
30 June
2025
£
4,539
572,178
(194,747)
(137,600)
244,370
Total funds at
30 June
2024
£
4,062
2
544,383
(210,710)
(154,800)
182,937
At 30 June
2025
£
347,490
347,490
At 30 June
2024
£
143,020
143,020

24 Related party transactions

There were no related party transactions in the year.

Page 33

Docusign Envelope ID: 106893A6-8505-4855-88E6-7B69A275A4E4

Centre for Local Economic Strategies Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

25 Prior year Statement of Financial Activities

Income and Endowments from:
Donations and legacies
Charitable activities
Investment income
Total income
Expenditure on:
Charitable activities
Total expenditure
Net (expenditure)/income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£
10,555
775,213
1,363
787,131
(926,486)
(926,486)
(139,355)
(139,355)
318,277
178,922		 Restricted
funds
£
-
310,517
-
310,517
(306,502)
(306,502)
4,015
4,015
-
4,015		 Total
2024
£
10,555
1,085,730
1,363
1,097,648
(1,232,988)
(1,232,988)
(135,340)
(135,340)
318,277
182,937

Page 34