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← Sparkle (South Wales)

2025-03-31-accounts

Company registration number: 04238990 Charity registration number: 1093690

SPARKLE (SOUTH WALES) TRUSTEES' REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

HSJ Accountants Ltd Severn House Hazell Drive Newport NP10 8FY

Sparkle (South Wales) Contents

Page
Trustees' Report 1—7
Independent Examiner's Report 8
Statement of Financial Activities (including Income and Expenditure Account) 9
Comparative Statement of Financial Activities (including Income and Expenditure Account) 10
Balance Sheet 11
Statement of Cash Flows 12
Notes to the Statement of Cash Flows 13
Notes to the Financial Statements 14—22
The following pages do not form part of the statutory accounts:
Detailed Statement of Financial Activities (including Income and Expenditure Account) 23—24

Sparkle (South Wales) Company No. 04238990 Trustees' Report For The Year Ended 31 March 2025

The trustees present their report and the financial statements for the year ended 31 March 2025.

Objectives and Activities

Aims and Objectives

Objects and aims

Sparkle (South Wales), 'Sparkle', has a vision that all children and young people with additional needs should be able to achieve their full potential, regardless of their disability or learning difficulties Sparkle works to achieve this directly with families in Gwent, and with the knowledge gained, influence change within Wales and across the UK when opportunities arise. Our aim is to achieve this through four key areas of work:

  1. Equitable enhanced service provision for children and young people with disabilities and developmental difficulties aligned with the three children’s centres in Gwent

  2. Training, educating, and working with other providers to enable children and young people with additional needs to realise their potential

  3. Advocacy within Gwent, across Wales (and ultimately the UK) to advance the optimal model of care and support. This includes working with statutory agencies in Gwent to align Sparkles aims with local aspirations for improved care.

4.Conduct in depth evaluations of our services, and exploring unmet needs among our families. Sharing these results with other provides and grant giving bodies to enable improvements in local care.

Public Benefit

The charity's purpose is to benefit children and young people with disabilities and developmental difficulties, and their families in Gwent. The trustees can evidence that the activities carried out by the charity throughout the last year have been for the benefit of those children and families who have identified additional and special needs.

The trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales. Our memorandum and articles have been updated in May 2021 to reflect current legislation

The trustees confirm that they have complied with the requirements of Section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s guidance on public benefit.

Volunteers

We have continued to benefit from fantastic volunteers, currently we have 35 weekly volunteers, ranging in age from 1670+, including some of our former service users. This equates to 6181 hours of work, at an annual cost saving of £75,649.

Strategy

The Sparkle 5 year strategy came to an end in March 2025 and work on a new 3 year strategy has begun. The new strategy will focus on service enhancement and financial stability with a renewed focus on partnership working with other statutory and voluntary agencies to maximise opportunities for developing and delivering enhanced leisure activities for children and young people with disabilities and developmental difficulties.

Achievements and Performance

Main Achievements

The charity pursues a range of objectives in line with its overarching role in providing services and support to children and young people with additional needs, and to their families. However there has been a continuing rise in the number of children & young people (CYP) needing our specialist support, with on average 20 referrals being received per month. There are currently 68 CYP across the patch, on a waiting list, broken down as follows- Serennu 47 / North 2 / West 19.

In 2024/25 an average of 205 children attended clubs in Serennu fortnightly, in addition to 72 children accessing specialist swimming lessons per week.

In North Gwent, we have continued to expand the number of places for CYP, and currently have 24 children attending fortnightly clubs.

In Caerphilly, we have 25 CYP accessing fortnightly clubs. We have also hired a local play centre to provide exclusive activities for our families in this region.

...CONTINUED

Page 1

Sparkle (South Wales) Trustees' Report (continued) For The Year Ended 31 March 2025

Main Achievements - continued

We offer three MediCinema screenings per week, family swim opportunities, family fun days– 776 families are registered to attend all of these activities. These activities are open to families across the whole of Gwent. We have also expanded our services by offering to facilitate children’s parties in Serennu, which has been very popular with families who have nowhere else that is safe or appropriate for their children.

Following an in-depth evaluation of ‘unmet needs’ in the North of Gwent, Sparkle identified that the facilities at Nevill Hall hospital are at the wrong location and are no longer fit for purpose to deliver optimal care and support to children with complex needs. Sparkle was commissioned by the Regional Partnership Board to undertake a feasibility study in respect of the need for a new children’s centre. The final report was submitted to the Regional Partnership Board (RPB) in February 2023, following consultation with our families and partners in Health, Social Care. However, to date there has been little action on the part of the RPB to progress this important gap in services for the north children, young people and families. In January 2025 Sparkle was invited to join a multi-agency task and finish group, as directed by the RPB which agreed a set of recommendations for service improvements for CYP with disabilities and developmental difficulties which should lead to better outcomes. At the time of writing this report Sparkle remains concerned that the inequities that exist between north and south Gwent are not being addressed in a manner that would make any meaningful difference to the children, young people and families living in the north of Gwent. Sparkle will continue to advocate through whatever means available to it, for a fairer, more equitable, levelling up of services.

Our fundraising activities continue to be challenging in terms of raising enough funds to support all our current activities and clubs. We remain heavily reliant on grant funding and our existing relationships with individual and corporate donors. However, the year 2024 / 2025 saw a measurable improvement in our fundraising efforts and income, although this still falls short of the amount Sparkle needs to raise to fund all its current activities.

We have also noted a number of grants giving bodies are no longer able to award grants at the scale that they had previously. We continue to work hard to secure grants and other income streams. The trustees are committed to ensuring that we maximise every grant opportunity that is available to us and has initiated an internal staffing restructure which will allow for more grant writing time.

There has been a greater effort on behalf of Sparkle to bring to the attention of families and all other relevant stakeholders that Sparkle does not receive any statutory funding to deliver services. In response to the financial challenges that it experiences, Sparkle has increased fundraising support by becoming charity of the year for businesses and recruiting 9 fundraising volunteers part of which includes developing a fundraising team made up of parents and carers. In addition, we were the charity of the year for the Newport Mayor, we engaged more with the community which included being a part of local supermarket voting schemes, we utilised the fundraising team to improve our reach with collection tins, we ran a successful toy appeal, supported by the local community, providing over 400 presents to families in need.

Since the service review and restructuring undertaken in early 2024 and finalised in December 2024 with the consolidation of a new senior leadership team, Sparkle has strengthened its management / leadership within the charity leading to a more committed and productive staff team, who feel more supported, are afforded greater flexibility in terms of their working patterns and with improved career advancement opportunities. Sparkle carries out an annual staff survey to ensure that the views and voices of staff are heard and taken into consideration in how the trustees manage both the charities activities and its employees.

Research and Development

Our Research and Development Officer has been extremely busy over the last year, conducting in-depth evaluations of our services and researching issues which are important to children with disabilities, their families and the organisations working with them. We produced an impact report for 2023, which collated figures on our reach, formal evaluation findings and informal feedback from children and families. We have been working with Children’s Centre Psychology in Aneurin Bevan University Health Board on an in-depth evaluation of Sparkle’s Continuing Care club, a leisure provision for children and young people with the most complex needs. We have also conducted an evaluation of all of our other leisure clubs, including parent-report surveys on goals and family wellbeing. Our impact report 2023 can be found on our website: https://www.sparkleappeal.org/ckfinder/userfiles/files/Sparkle%20Impact%20Report%202023.pdf

We also published the following reports:

https://www.sparkleappeal.org/ckfinder/userfiles/files/Sparkle%20Disability%20Prevalence%20Report%20(002).pdf

https://www.sparkleappeal.org/ckfinder/userfiles/files/Swimming%20evaluation%202024.pdf

In line with our strategic aim of promoting optimal models of care for children with complex needs, we continue to conduct in-depth evaluations into services developed and delivered by Sparkle, and to disseminate these locally and nationally. The evaluations have directly informed our service delivery, and helped us to refine the services and facilities we offer. All of our evaluation reports and research papers can be found on our website, including lay summaries: https://www.sparkleappeal.org/research.

...CONTINUED

Page 2

Sparkle (South Wales) Trustees' Report (continued) For The Year Ended 31 March 2025

Research and Development - continued

As part of our research activities, Sparkle has also produced a series of webinars/podcasts with As You See It Media on colocation of health, social care and third sector services; providing holistic support for families; delivering specialist leisure services for children with disabilities; and the importance of research and evaluation to service development. These webinars included a variety of experts, including health and social care professionals, young people and family-carers, a researcher from Cardiff University, and Sparkle staff. A video tour of Serennu Children’s Centre and Sparkle services was filmed alongside the webinars, which are also available as podcasts. These can be found on Sparkle’s website: https://www.sparkleappeal.org/about/webinars

Financial Review

Financial Position

Funds raised via grants, our existing individual donors and corporate supporters, and the small amount raised by our café and activities resulted in a total income of £917,022.

Successful grant funding from Newport and Caerphilly Councils, and grants from, Health Lottery Foundation, St James Place Charitable Foundation, Barbara Ward Foundation, Hargreaves Foundation and the National Lottery Awards for All.

All of the above funding has had huge impacts on our children’s leisure services at Serennu Children’s Centre, Caerphilly Children’s Centre and Blaina Integrated Children’s Centre. A significant award of unrestricted funds from Garfield Weston Foundation ensured the continuation and growth of the charity. Millenium Stadium Charitable Trust supported our MediCinema screenings this year. The Waterloo Foundation supported the delivery of the Family Liaison Service.

Grants and donations have been essential and our main sources of income, given the Charity's limited fundraising opportunities in the context of our location in a low-income area, and current cost of living crisis.

Sparkle's unrestricted reserves have increased to £457,414 as of 31 March 2025. This reserve will be used to safeguard existing activities and support the operation of the Charity.

Our forecast for the coming year is that our running costs will be in excess of our income and as such our unrestricted reserves will diminish. We are satisfied we have sufficient reserves to cover this deficit. In the new year we have appointed a further grants officer to increase income from this source.

Reserves Policy

The trustees have reviewed the reserves policy and, in accordance with Charity Commission guidelines, have considered the level of unrestricted reserves which it is appropriate for the charity to hold, with the imperative that it should be able to continue to meet its charitable objectives in the short term, in the event of a temporary shortfall in unrestricted income. The trustees have concluded that given the inherent risks as noted above it is appropriate to hold sufficient free reserves to cover the core expenditure required to maintain activities for six months.

Page 3

Sparkle (South Wales) Trustees' Report (continued) For The Year Ended 31 March 2025

Future Developments

Aims and key objectives for future periods

• Continue to offer a diverse range of activities and support to children and young people with disabilities/complex needs and their families in Gwent.

• Continue to offer the opportunity for children and young people with disabilities/complex needs to develop skills and try new activities in a safe and non-judgmental environment.

• Continue to develop services to reach children with the most severe complex health care needs in liaison with partner agencies.

• To expand our staffing where feasible to run the clubs at capacity and offer the best outcomes for the children and young people we support.

• To explore options for upskilling community providers to accommodate more of our young people in an integrated community setting.

• To continue undertaking high quality service evaluations, to identify whether additional services provided by Sparkle are having a positive impact on the lives of children with disabilities and their families.

• To use the data obtained from in depth evaluations to both market our services to potential funders, and to promote the optimal model of care for these children and young people across Wales and the remainder of the UK.

• To continue to develop and implement robust performance management and monitoring systems to support the needs of a growing and successful charity, enabling Sparkle to develop and be more sustainable for the future.

• To continue to develop and implement quality control frameworks and strategy to ensure that all children and young people and their families receive an equitable and high-quality service from Sparkle.

• To continue to recruit, train and retain regular volunteers, without whom we wouldn't be able to carry out our work.

• To increase our collaborative working with Local Authorities and statutory agencies to attract more commissioned work.

• Review and streamline policies and procedures within Sparkle to ensure greater efficiency and sustainability.

Structure, Governance and Management

Governing Document

The governing document of the charity is its Memorandum and Articles of Association – incorporated on 21 June 2001, as amended by special resolution on 15 July 2002, and again on 27 May 2021.

The charity is registered as a private company, limited by guarantee.

Trustee Selection Methods

New trustees are recruited following an open application process, in line with specific roles and responsibilities required by the Board. All interested applicants are interviewed by the Chairperson, and independently by at least one other trustee. Following this, if appropriate, they are appointed by a resolution of the existing trustees, in accordance with the charity's constitution.

Induction and Training of Trustees

Consideration of appropriate and relevant skills and experience is given when introducing new trustees to the charity. The Chairperson is responsible for making new trustees aware of their responsibilities under charity law, and arranging appropriate induction and training, to include safeguarding. The Business Service Manager will ensure that disclosure and barring checks are undertaken, and that they complete the appropriate paperwork and training relating to confidentiality, conflict of interest and all relevant polices pertaining to the charity's business.

Major risks and management of those risks

The trustees have considered the major risks to which the charity is exposed, have reviewed these risks and have established systems and procedures to manage them.

The key risks identified by trustees include:

• increasing demand and costs without a similar increase in income – the charity has plans to employ a new funding and impact officer, to strengthen the fundraising element of Sparkles operations.

...CONTINUED

Page 4

Sparkle (South Wales) Trustees' Report (continued) For The Year Ended 31 March 2025

Major risks and management of those risks - continued

• the Charity helps vulnerable young people and as such there is a need for very good systems, controls and training to ensure appropriate safeguarding standards are maintained – this will be achieved through the newly created senior leadership team, headed up by the Head of Sparkle Operations who is directly accountably to the Board Chair.

• the ability to retain key staff members – this will be managed through an identified process for salary enhancement, an improved senior leadership team management structure, regular communication with staff by the chair and board of trustees, and a commitment to staff wellbeing.

• Sparkle’s relationship with the Health Board – a new communications structure with the health board has been implemented following the development of a memorandum of understanding agreed by both parties, and quarterly meetings are taking place to ensure that there is an open and honest partnership

Reference and Administrative Details

Trustees

Miss J M Kelly Mr A D Durston (resigned 14/11/2024) Miss S C Downes (appointed 10/07/2025) Mrs J Sheppard Ms N Garnon Mr M Gerrard Mrs T A Pead Mr N G Williams Dr S Maguire (resigned 29/05/2025) Mrs S E Hawdon (resigned 21/08/2025)

Company Secretary

Mr M Gerrard

Charity Number

1093690

Company Number

04238990

Principal Address

Sparkle Appeal Office Serennu Children's Centre High Cross Road Newport NP10 9LY

Registered Office

Serennu Children's Centre Cwrt Camlas Rogerstone Newport NP10 9LY

Independent Examiner

Andrew Hill FCCA ACA DChA BFP HSJ Accountants Ltd Severn House Hazell Drive Newport NP10 8FY

Page 5

Sparkle (South Wales) Trustees' Report (continued) For The Year Ended 31 March 2025

Bankers

Barclays Bank Plc Newport Commercial Street 14 Commercial Street Newport

Page 6

Sparkle (South Wales) Trustees' Report (continued) For The Year Ended 31 March 2025

Other Information

Objectives and policies

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially measured at transaction value and subsequently measured at settlement value.

Small Company Rules

This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

The trustees' report was approved by the board of trustees and signed on its behalf by:

Mr M Gerrard Trustee 18 December 2025

Page 7

Sparkle (South Wales) Independent Examiner's Report to the Trustees of Sparkle (South Wales) For The Year Ended 31 March 2025

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2025.

Responsibilities and Basis of Report

As the charity trustees of the Company (and also its directors for the purposes of company law), you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (“the 2006 Act”).

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent Examiner's Statement

Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of The Association of Chartered Certified Accountants, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair view' which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Andrew Hill FCCA ACA DChA BFP 23 December 2025 Severn House Hazell Drive Newport NP10 8FY

Page 8

Sparkle (South Wales) Statement of Financial Activities (including Income and Expenditure Account) For The Year Ended 31 March 2025

Notes
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3
Charitable activities:
4
Clubs, activities and cafe sales
Other trading activities
5
Investments
6
EXPENDITURE ON:
Raising funds
8
Charitable activities:
8
Clubs, activities and cafe sales
NET INCOME/(EXPENDITURE)
Transfers between funds
17
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
17		 Unrestricted
funds
£
357,938
92,324
5,204
11,780		 Restricted
funds
£
449,776
-
-
-		 2025
Total
funds
£
807,714
92,324
5,204
11,780		 2024
Total
funds
£
544,903
82,695
6,671
5,105
467,246 449,776 917,022 639,374
(47,376)
(336,685)		 (49,172)
(326,435)		 (96,548)
(663,120)		 (47,297)
(739,927)
(384,061) (375,607) (759,668) (787,224)
83,185
(1,138)		 74,169
1,138		 157,354
-		 (147,850)
-
82,047
375,367		 75,307
280,727		 157,354
656,094		 (147,850)
803,944
457,414 356,034 813,448 656,094

The notes on pages 13 to 22 form part of these financial statements.

Page 9

Sparkle (South Wales) Comparative Statement of Financial Activities (including Income and Expenditure Account) For The Year Ended 31 March 2025

Notes
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3
Charitable activities:
4
Clubs, activities and cafe sales
Other trading activities
5
Investments
6
EXPENDITURE ON:
Raising funds
8
Charitable activities:
8
Clubs, activities and cafe sales
NET EXPENDITURE
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
17		 Unrestricted
funds
£
245,056
82,695
6,671
5,105		 Restricted
funds
£
299,847
-
-
-		 2024
Total
funds
£
544,903
82,695
6,671
5,105
339,527 299,847 639,374
(30,144)
(382,062)		 (17,153)
(357,865)		 (47,297)
(739,927)
(412,206) (375,018) (787,224)
(72,679) (75,171) (147,850)
(72,679)
448,046		 (75,171)
355,898		 (147,850)
803,944
375,367 280,727 656,094

The notes on pages 13 to 22 form part of these financial statements.

Page 10

Sparkle (South Wales) Balance Sheet As At 31 March 2025

Notes
FIXED ASSETS
Tangible Assets
13
CURRENT ASSETS
Debtors
14
Cash at bank and in hand
Creditors: Amounts Falling Due Within One Year
15
NET CURRENT ASSETS (LIABILITIES)
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
FUNDS OF THE CHARITY
Restricted Funds
Unrestricted Funds
TOTAL FUNDS
17		 Unrestricted
funds
£
569		 Restricted
funds
£
-		 2025
Total
funds
£
569		 2024
Total
funds
£
1,290
569
807,673
481,452		 -
59,924
1,170,560		 569
46,679
785,233		 1,290
78,592
613,846
1,289,125
(832,280)		 1,230,484
(874,450)		 831,912
(19,033)		 692,438
(37,634)
456,845 356,034 812,879 654,804
457,414 356,034 813,448 656,094
457,414 356,034 813,448 656,094
356,034
457,414		 280,727
375,367
813,448 656,094

For the year ending 31 March 2025 the charitable company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the charitable company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

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

On behalf of the board

Mr M Gerrard Trustee 18 December 2025

The notes on pages 13 to 22 form part of these financial statements.

Page 11

Sparkle (South Wales) Statement of Cash Flows For The Year Ended 31 March 2025

Notes
Cash flows from operating activities
Net cash generated from/(used in) operations
1
Interest paid
Net cash generated from/(used in) operating activities
Cash flows from investing activities
Purchase of tangible assets
Interest received
Net cash generated from investing activities
Increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
2
Cash and cash equivalents at end of year
2		 2025
£
160,230
(623)
159,607
-
11,780
11,780
171,387
613,846
785,233		 2024
£
(83,238)
(637)
(83,875)
(1,193)
5,105
3,912
(79,963)
693,809
613,846

Page 12

Sparkle (South Wales) Notes to the Statement of Cash Flows For The Year Ended 31 March 2025

1. Reconciliation of income/(expenditure) to cash generated from/(used in) operations

Net income/(expenditure)
Adjustments for:
Interest expense
Interest income
Depreciation of tangible assets
Movements in working capital:
Decrease in trade and other debtors
Decrease in trade and other creditors
Net cash generated from/(used in) operations		 2025
£
157,354
623
(11,780)
721
31,913
(18,601)
160,230		 2024
£
(147,850)
637
(5,105)
1,814
70,182
(2,916)
(83,238)
  1. Cash and cash equivalents

Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:

Cash at bank and in hand
3.
Analysis of changes in net funds		 2025
£
785,233		 2024
£
613,846
.
Analysis of changes in net funds
As at 1 April Cash flows As at 31
2024 March 2025
£ £ £
Cash at bank and in hand 613,846 171,387 785,233

Page 13

Sparkle (South Wales) Notes to the Financial Statements For The Year Ended 31 March 2025

1. General Information

Sparkle (South Wales) is a company limited by guarantee, incorporated in England & Wales, registered number 04238990 and registered charity number 1093690. The registered office is Serennu Children's Centre Cwrt Camlas, Rogerstone, Newport, NP10 9LY.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)", Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

The charitable company is a Public Benefit Entity as defined by FRS 102.

2.2. Going Concern Disclosure

The financial statements have been prepared on a going concern basis.

The trustees assess whether the use of the going concern basis is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements

2.3. Fund Accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Designated funds comprise unrestricted funds that have been set aside by the trustees for a specific purpose.

Restricted funds are to be used for specific purposes as laid down by the donor. The cost of raising and administering such funds are charged against the specific fund.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

2.4. Incoming Resources

All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

Donations and legacies

Donations are recognised when there is entitlement, when receipt is probable and the amount can be reliably measured. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.

Grants receivable

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Deferred income

Deferred income represents amounts received in respect of future periods and is released to incoming resources in the period for which it has been received. Such income is only deferred when:

Gift aid

Incoming resources from tax reclaims are included in the statement of financial activities at the same time as the gift to which they relate.

...CONTINUED

Page 14

Sparkle (South Wales) Notes to the Financial Statements (continued) For The Year Ended 31 March 2025

2.4. Incoming Resources - continued

Investment income

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

2.5. Donated Goods and Services

Gifts in kind have been valued in the accounts at the cost to the charity had it purchased the items directly.

2.6. Resources Expended

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 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.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

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

Governance costs

These include the costs attributable to the Charity’s compliance with constitutional and statutory requirements, including independent review, strategic management and Trustee’s meetings and reimbursed expenses.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

2.7. Tangible Fixed Assets and Depreciation

Tangible fixed assets costing £500 or more are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Computer Equipment

33% straight line

2.8. Cash and Cash Equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.

2.9. Taxation

The charity 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 charity 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.

2.10. Pensions

The charitable company operates a defined pension contribution scheme. Contributions are charged to the Statement of Financial Activities as they become payable in accordance with the rules of the scheme.

Page 15

Sparkle (South Wales) Notes to the Financial Statements (continued) For The Year Ended 31 March 2025

2.11. Trade debtors

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 debtors is established when there is objective evidence that the Charity will not be able to collect all amounts due according to the original terms of the receivables.

2.12. 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 charity 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.

3. Income from Donations and Legacies

.
Income from Donations and Legacies
Donations and gifts
Gift aid
Legacies
Grants
Donations and gifts
Gift aid
Legacies
Grants
.
Income from Charitable Activities
Clubs, activities and cafe sales
.
Income from Other Trading Activities
Fundraising events
Sale of donated and bought in goods		 Unrestricted
funds
£
154,274
1,341
175,478
26,845		 Restricted
funds
£
65,200
15,000
-
369,576		 2025
Total
funds
£
219,474
16,341
175,478
396,421
357,938 449,776 807,714
Unrestricted
funds
£
214,329
6,341
21,214
3,172		 Restricted
funds
£
85,285
7,500
-
207,062		 2024
Total
funds
£
299,614
13,841
21,214
210,234
245,056 299,847 544,903
2025
Unrestricted
funds
£
92,324		 2024
Unrestricted
funds
£
82,695
2025
Unrestricted
funds
£
4,543
661		 2024
Unrestricted
funds
£
6,378
293
5,204 6,671

4. Income from Charitable Activities

5. Income from Other Trading Activities

Page 16

Sparkle (South Wales) Notes to the Financial Statements (continued) For The Year Ended 31 March 2025

6. Investment Income

.
Investment Income
2025 2024
Unrestricted Unrestricted
funds funds
£ £
Bank interest receivable 11,780 5,105

7. Net Income/(Expenditure)

The net income/(expenditure) is stated after charging/(crediting):

Depreciation of tangible fixed assets - owned
.
Analysis of Expenditure
Raising funds
Clubs, activities and cafe sales
Raising funds
Clubs, activities and cafe sales		 Activities
undertaken
directly
£
96,548
595,989		 2025
£
721		 2024
£
1,814
Support
costs
(see note 9)
£
-
67,131		 2025
Total
£
96,548
663,120
692,537 67,131 759,668
Activities
undertaken
directly
£
47,297
678,201		 Support
costs
(see note 9)
£
-
61,726		 2024
Total
£
47,297
739,927
725,498 61,726 787,224

8. Analysis of Expenditure

Of the above costs in relation to raising funds £49,170 (2024: £17,153) were attributable to restricted funds, and £47,376 (2024: £30,144) were attributable to urestricted funds.

Of the above costs in relation to charitable activities £329,741 (2024: £357,866) were attributable to restricted funds, and £333,381 (2024: £382,061) were attributable to urestricted funds.

Page 17

Sparkle (South Wales) Notes to the Financial Statements (continued) For The Year Ended 31 March 2025

  1. Support Costs
Employee costs
Depreciation
Governance costs
Employee costs
Depreciation
Governance costs
10.
Independent Examiner's Remuneration
Independent examination of the financial statements
11.
Staff Costs
Staff costs were as follows:
Wages and salaries
Social security costs
Other pension costs		 2025
£
2,820
2025
£
496,776
29,710
27,255
553,741		 2025
Clubs,
activities
and cafe
sales
£
62,196
721
4,214
67,131
2024
Clubs,
activities
and cafe
sales
£
57,199
1,814
2,713
61,726
2024
£
2,713
2024
£
564,903
19,321
15,035
599,259

No employees received employee benefits (excluding employer pension costs) for the reporting period of more than £60,000. The total employee benefits of the key management personnel of the charity were £143,677 (2024: £102,719).

The average number of full time staff employed in the period was 7, and the average number of part time staff employed was 117. The equivalent number of full time staff employed would be estimated as 16.

Page 18

Sparkle (South Wales) Notes to the Financial Statements (continued) For The Year Ended 31 March 2025

12. Average Number of Employees

Average number of employees during the year was as follows:

Charitable Activities
Administration
Governance
13.
Tangible Assets
Cost
As at 1 April 2024
As at 31 March 2025
Depreciation
As at 1 April 2024
Provided during the period
As at 31 March 2025
Net Book Value
As at 31 March 2025
As at 1 April 2024
14.
Debtors
Due within one year
Other debtors
15.
Creditors: Amounts Falling Due Within One Year
Other creditors
Taxation and social security
Accruals and deferred income		 2025
106
2
12
120
2025
£
46,679
2025
£
2,649
-
16,384
19,033		 2024
96
2
13
111
Computer
Equipment
£
11,733
11,733
10,443
721
11,164
569
1,290
2024
£
78,592
2024
£
2,183
6,604
28,847
37,634

16. Pension Commitments

The charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.

During the year the charge to the statement of financial activities in respect of defined contribution schemes was £27,255 (2024: £15,035).

At the balance sheet date contributions of £NIL were due to the fund and are included in creditors.

Page 19

Sparkle (South Wales) Notes to the Financial Statements (continued) For The Year Ended 31 March 2025

17.
Movement in Funds
As at 1 April As at 31
2024 Income Expenditure Transfers March 2025
£ £ £ £ £
Unrestricted funds
General:
General unrestricted fund 375,367 467,246 (384,061) (1,138) 457,414
Restricted funds
AB Invoice 113,457 14,428 48,154 - 176,039
ALN Parents Engagement 23,000 - - - 23,000
Bailey 5,522 - (5,522) - -
BG UK - 39,870 (39,870) - -
Big Lottery 1,212 - (1,212) - -
Caerphilly CBC - 9,622 (7,879) - 1,743
Community Foundation Wales 2,000 - (2,000) - -
Edward Gostling Foundation 10,876 - (10,876) - -
Gwen Mags 1,940 - (1,940) - -
Heb Ffin 4,793 - (4,793) - -
ISCAN 14,751 - (11,913) - 2,838
KLA 25,000 35,000 (27,109) - 32,891
Masonic Charitable Foundation 10,341 - (10,341) - -
Mr J Harris 8,966 26,200 (15,612) - 19,554
Mr N Harris - 54,000 (54,000) - -
NCC Family First Play Club - 97,993 (99,131) 1,138 -
Nevill Hall 471 - (471) - -
O2E Clubs 52,999 20,000 (25,621) - 47,378
St James 2,500 - (2,500) - -
Tesco Bags of Help Funding - 750 (750) - -
The Waterloo Foundation 6 500 (506) - -
Woodspoon 2,893 - (2,893) - -
Boshier - 1,746 (1,746) - -
Bruce Wake - 2,000 (2,000) - -
Cash 4 Kids - 3,208 - - 3,208
Garfield - 30,000 (13,060) - 16,940
Gavo - 1,000 (1,000) - -
Hargreaves - 8,103 (3,910) - 4,193
Hedley - 3,000 (3,000) - -
Jane Hodge - 10,000 (10,000) - -
MSCT - 10,000 - - 10,000
NPT SPF - 23,900 (23,900) - -
Npt Youth - 8,000 (8,000) - -
Oakdale - 1,500 (1,500) - -
Postcode - 25,000 (25,000) - -
RIF Slippa - 1,906 (1,906) - -
SFFTD - 2,500 (2,500) - -
STA - 1,000 - - 1,000
...CONTINUED

Page 20

Sparkle (South Wales) Notes to the Financial Statements (continued) For The Year Ended 31 March 2025

TNLCF
Viridor
Total restricted funds
Total funds
Unrestricted funds
General:
General unrestricted fund
Restricted funds
AB Invoice
ALN Parents Engagement
Bailey
Barclays
BG UK
Big Lottery
Blackwood Engineering
Caerphilly CBC
Children in Need
Community Foundation Wales
Edward Gostling Foundation
Gwen Mags
Heb Ffin
ISCAN
KLA
Masonic Charitable Foundation
Mr J Harris
Mr N Harris
NCC Family First Play Club
NCC PBP
Nevill Hall
O2E Clubs
Peter Harrison Foundation
Prin Wales
St James
Tesco Bags of Help Funding
The Waterloo Foundation
Woodspoon
Total restricted funds
Total funds		 -
-		 17,250
1,300		 -
(1,300)		 -
-		 17,250
-
280,727 449,776 (375,607) 1,138 356,034
656,094 917,022 (759,668) - 813,448
As at 1 April
2023
£
448,046
113,586
23,000
-
9,581
-
-
6,000
264
1,087
-
-
-
-
22,936
-
16,919
16,191
67,382
771
14,219
471
59,523
1,429
1,544
-
-
995
-		 Income
£
339,527
14,109
-
10,000
-
9,659
9,920
2,000
1,950
-
2,000
25,000
3,000
10,000
-
25,000
19,847
8,285
37,500
89,827
-
-
22,000
-
-
2,500
2,250
-
5,000		 Expenditure
£
(412,206)
(14,238)
-
(4,478)
(9,581)
(9,659)
(8,708)
(8,000)
(2,214)
(1,087)
-
(14,124)
(1,060)
(5,207)
(8,185)
-
(26,425)
(15,510)
(104,882)
(90,598)
(14,219)
-
(28,524)
(1,429)
(1,544)
-
(2,250)
(989)
(2,107)		 As at 31
March 2024
£
375,367
113,457
23,000
5,522
-
-
1,212
-
-
-
2,000
10,876
1,940
4,793
14,751
25,000
10,341
8,966
-
-
-
471
52,999
-
-
2,500
-
6
2,893
355,898 299,847 (375,018) 280,727
803,944 639,374 (787,224) 656,094

Page 21

Sparkle (South Wales) Notes to the Financial Statements (continued) For The Year Ended 31 March 2025

18. Transactions with Trustees

None of the trustees received any remuneration or any other benefits from an employment with the charity or a related entity during the current or previous year.

No trustee expenses have been incurred.

19. Related Party Disclosures

During the year Mr N Harris, the spouse of a trustee, made restricted donations of £44,000 (2023 - £30,000) to Sparkle (South Wales). At the balance sheet date the amount due from Mr N Harris was £nil (2024: £nil).

20. Company limited by guarantee

The company is limited by guarantee and has no share capital.

Every member of the company undertakes to contribute to the assets of the company, in the event of a winding up, such an amount as may be required not exceeding £1.

Page 22

Sparkle (South Wales) Detailed Statement of Financial Activities (including Income and Expenditure Account) For The Year Ended 31 March 2025

INCOME AND ENDOWMENTS FROM:
Donations and legacies
Donations and gifts
Donations from organisations
Gift aid
Legacies
Grants
Charitable Activities:
Clubs, activities and cafe sales
Sale of goods or services
Playclubs
Swim lessons
Other trading activities
Fundraising events
Sale of donated and bought in goods
Investments
Bank interest receivable
EXPENDITURE ON:
Raising funds
Fundraising costs
Publicity and advertising costs
Wages and salaries
Employers NI
Employers pensions - defined contribution schemes
Charitable Activities:
Clubs, activities and cafe sales
Purchases
Medicinema
Club equipment
Specialist equipment
Swim costs
Club activities
Other equipment
Trips
Other activities
Fundraising costs
Subcontractor costs		 2025
Total
funds
£
174,213
45,261
16,341
175,478
396,421		 2024
Total
funds
£
148,361
151,253
13,841
21,214
210,234
544,903
27,882
35,129
19,684
82,695
6,378
293
6,671
5,105
5,105
639,374
(1,784)
(7,955)
(32,886)
(3,032)
(1,640)
(47,297)
(15,958)
(10,626)
(16,220)
(720)
(23,038)
(4,867)
(172)
(9,972)
(218)
(5,412)
(6,436)
...CONTINUED
807,714
28,297
35,561
28,466
92,324
4,543
661
5,204
11,780
11,780
917,022
(6,007)
(1,522)
(78,227)
(4,890)
(5,902)
(96,548)
(11,115)
(11,598)
(32,654)
-
(29,804)
(4,422)
(4,613)
(3,223)
(306)
(5,910)
(5,815)

Page 23

Sparkle (South Wales) Detailed Statement of Financial Activities (including Income and Expenditure Account) (continued) For The Year Ended 31 March 2025

Wages and salaries
Employers NI
Employers pensions - defined contribution schemes
Travel and subsistence expenses
Employee training
Other staffing costs
Recruitment costs
Building running costs
Computer software, IT consumables and website
Repairs, renewals and maintenance
Insurance
Telephone
Printing, postage and stationery
Subscriptions
Support groups
Bank charges
Wages and salaries
Employers NI
Employers pensions - defined contributions scheme
Depreciation
Independent examiner's fees
Accountancy fees
Legal fees
NET INCOME/(EXPENDITURE)		 (364,577)
(21,690)
(16,259)
(2,277)
(13,654)
(12,492)
(4,317)
(26,708)
(15,678)
(265)
(6,487)
(651)
(524)
(277)
(50)
(623)
(53,972)
(3,130)
(5,094)
(721)
(2,820)
(1,074)
(320)		 (478,998)
(13,740)
(11,764)
(2,129)
(16,819)
(6,381)
(3,233)
(22,438)
(15,717)
(1,863)
(6,227)
(755)
(3,488)
(307)
(66)
(637)
(53,019)
(2,549)
(1,631)
(1,814)
(2,713)
-
-
(663,120) (739,927)
(759,668) (787,224)
157,354 (147,850)

Page 24