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2025-06-30-accounts

TOWER HAMLETS FRIENDS AND NEIGHBOURS (a company limited by guarantee)

Company Number: 04657449 Registered Charity Number 1099403

TOWER HAMLETS FRIENDS AND NEIGHBOURS

A Charitable Company Limited by Guarantee.

Annual Report for the

15 month period ended 30 June 2025

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TOWER HAMLETS FRIENDS AND NEIGHBOURS (a company limited by guarantee)

CONTENTS
 PAGE
Reference and administrative details of the charity, its trustees and advisers 3
Report from the Chair 4
Trustees’ Report 5-16
Independent Examiner’s report 17
Statement of financial activities 18
Balance Sheet 19
Notes to the financial statements 20-26
Funders and supporters 27

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TOWER HAMLETS FRIENDS AND NEIGHBOURS (a company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE 15 MONTH PERIOD ENDED 30 June 2025

Trustees:

Anne Worlledge (Chair) Carl Steventon Stephen Robarts (Treasurer) Pam Kaur Gibbons (Resigned from 19 September 2024) Jennifer Skeels Louise Theophile Nycolle Deniz (Resigned from 6 June 2024) Jaber Khan Nancy Easton (Resigned from 19 September 2024)

Registered and principal office

St Margaret’s House, 21 Old Ford Road, London E2 9PL Telephone 0203 007 9120 Email admin@thfn.org.uk Website www.thfn.org.uk

Staff

Chief Executive and Company Secretary: Rita Chadha Client Services Administrator Clara Djondo Befriending Advocates: Shirajul Islam, Brenda Lawrence, Shaleha Begum, Nina McLoone (to January 2026), Rose Curran (retired July 2024)

Bankers

HSBC Bank plc

Independent Examiner

Gavin Purvis (FCCA), Purvis Stevens LLP, Chartered Certified Accountants, Hayles Bridge Offices, 228 Mulgrave Road, Cheam, Surrey SM2 6JT

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TOWER HAMLETS FRIENDS AND NEIGHBOURS (a company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT FOR THE YEAR ENDED 30 June 2025

Report from the Chair

I am pleased to report that we are in the process of converting from a charitable company limited by guarantee to a Charitable Incorporated Organisation (CIO). This is an important and positive step for THFN: a CIO structure will reduce the personal liability of our trustees, simplify our governance, and better reflect the kind of community-rooted organisation we are. In order to complete the conversion and close the company properly, we needed to align our financial year with the new structure. We therefore extended our reporting period by three months, and these accounts cover the 15-month period from 1 April 2024 to 30 June 2025. Readers should bear this extended period in mind when comparing figures with our previous annual accounts, which covered a standard 12-month year to 31 March 2024.

The financial results for the 15 months to 30 June 2025 highlights the challenges we have faced in securing funding, and in particular multi-year funding. Our CEO has chased every opportunity and was able to secure £189,606 of funding for the period. Despite this, with total costs of £210,475 we saw a reduction in our reserves of £20,888.

We are not alone in facing difficulties in securing funding. Many large charities, alongside most small charities, have openly reported the challenges. We believe that the service we provide to the older community in Tower Hamlets, and to our unique client group, is first class and remain hopeful that the service will continue in the foreseeable future. We thank the funders who supported us through the 15 months to 30 June 2025.

Over the 15 months to 30 June 2025, THFN received 97 new referrals and supported 271 older people across Tower Hamlets — people who are isolated, housebound, navigating complex health conditions, and too often invisible to the systems that are supposed to support them. Tower Hamlets ranks first out of 326 local authority areas in England for predicted loneliness among those aged 65 and over. That is not an abstract statistic: it is the daily reality of the people who come to us for a befriending visit, a phone call, or someone to help them navigate a benefits system they find bewildering. Every single contact our staff and volunteers made during this period mattered.

Recognising the current and likely future needs in Tower Hamlets, we set out our key strategic priorities for the coming years (see pages 11-12). We recognise the challenges but are confident that with the support of our funders and partners, and the continued dedication of our staff and volunteers we can meet those challenges.

As always, on behalf of the trustees I thank our staff and volunteers- they are the heart and soul of THFN, and our clients who make all of this worthwhile.

Please follow us on social media or through our website (thfn.org.uk) and watch our progress, and if you would like to receive a regular newsletter please contact Rita Chadha on rita@thfn.org.uk.

Anne Worlledge – Chair of Trustees

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TOWER HAMLETS FRIENDS AND NEIGHBOURS (a company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT FOR THE 15 MONTH PERIOD ENDED 30 June 2025

The trustees present the annual report together with the financial statements for the 15 month period ended 30 June 2025. The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company’s governing document and the provisions of the Statement of Recommended Practice (SORP) 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 2015) as amended by Update Bulletin 1 (effective 1 January 2015). Since the company qualifies as small under section 383 of the Companies Act 2006, the strategic report required of medium and large companies (Strategic Report and Director’s Report Regulations 2013) is not required.

_____________

___

ANNUAL IMPACT REPORT 2024–2025

Transforming Lives,

Building Communities

Tower Hamlets Friends and Neighbours stands at the forefront of combating social isolation and enhancing quality of life for those over 55 in Tower Hamlets. As a dynamic voluntary organisation, we leverage innovative approaches and bespoke care to create meaningful connections and deliver vital support services.

Our Mission

Through our integrated support network, we break down barriers to independence, champion mental wellbeing, and foster lasting social connections. Our evidence-based approach combines traditional befriending services with modern advocacy and support systems, ensuring every client receives bespoke support that adapts to their evolving needs.

1. Building Meaningful Connections

We create transformative social connections that combat isolation and nurture lasting relationships. Through our extensive network of trained volunteers and professional staff, we ensure no older

2. Empowering 3. Fostering Active Independent Living Engagement

Our comprehensive support framework enables older people to maintain their autonomy and dignity. We combine emotional support with practical assistance, helping navigate healthcare systems and manage daily challenges with confidence.

We curate dynamic, inclusive activities that stimulate both mind and body, creating opportunities for personal growth, cultural expression, and community participation so every older person can contribute to active community life.

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TOWER HAMLETS FRIENDS AND NEIGHBOURS (a company limited by guarantee)

member of our community faces life's challenges alone.

Voluntary Organisation Supporting Older People in 2024-2025

Loneliness, as the research makes clear, is not a lifestyle inconvenience — it is a health crisis. It raises blood pressure, accelerates cognitive decline, and is strongly associated with depression. An estimated 3,800 older people in Tower Hamlets are effectively housebound, and 56% of older residents report feeling isolated.

----- Start of picture text -----
The Investment Case for Befriending
£3.75 Every pound invested in befriending services saves £3.75 in health
costs. Loneliness is not a lifestyle inconvenience — it is a health crisis.
----- End of picture text -----

Every pound invested in befriending services saves £3.75 in health costs. Loneliness is not a lifestyle inconvenience — it is a health crisis. It raises blood pressure, accelerates cognitive decline, and is strongly associated with depression.

returned for every £1 invested

----- Start of picture text -----
3,800 £3.5M 40%
56%
Older people
Annual cost of Increase in GP visits
effectively Older residents report
loneliness to the caused by social
housebound in Tower feeling isolated
borough's NHS isolation
Hamlets
----- End of picture text -----

"A 28% reduction in GP appointments has been found among people receiving befriending-linked social prescriptions — the case for befriending as a preventative health intervention has never been better evidenced."

— NHS England Evaluation

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TOWER HAMLETS FRIENDS AND NEIGHBOURS (a company limited by guarantee)

The National Volunteering Picture

The national picture on volunteering remains challenging. Volunteer numbers in London declined by 25% following the pandemic (London Plus, 2023), and 77% of charities across the UK report ongoing difficulties recruiting volunteers (NCVO Civil Society Almanac, 2023). The organisations that do attract and retain volunteers — particularly for demanding befriending work with people who have complex needs — do so because they invest properly in volunteer support, training, and recognition.

This is something THFN takes seriously. Our befrienders are not simply visiting: they are trained advocates who provide medication reminders, encouragement for gentle exercise, help navigating welfare systems, and — most critically — a consistent human presence in the lives of people who might otherwise have none. In 2024-25 we secured funding for a dedicated Volunteer Development Coordinator to strengthen this capacity further, and we are working on a new CRM system to better capture and understand the impact that our service makes for older people in the borough.

Befriending and Social Prescribing: a Changing Landscape

In 2024, Befriending Networks — the national membership body for befriending services — published its first five-year strategic plan since before the pandemic. It acknowledged frankly that the sector faces a significant digital infrastructure challenge: that the tools for training, impact measurement, and volunteer matching exist, but that many organisations remain priced out or under-skilled, while the communities they serve face deep digital inequalities.

Befriending is also increasingly embedded within NHS social prescribing frameworks. NHS England's evaluation found a 28% reduction in GP appointments among people receiving befriending-linked social prescriptions. ONS projections (2025) suggest that by 2034, 1.2 million people aged 65 and over in England will regularly experience loneliness — a figure with profound implications for both health spending and quality of life.

The Economic Pressures Facing Older People

The most significant national policy development during this reporting period was the Government's decision, announced in July 2024, to means-test the Winter Fuel Payment. From winter 2024/25, the payment was restricted to those receiving Pension Credit or certain other means-tested benefits, removing it from around 10.8 million pensioners. The Government has since reversed course, announcing that from winter 2025/26 the payment will be restored universally, with higher earners repaying it through the tax system. But the hardship fell squarely within the period covered by this annual report.

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TOWER HAMLETS FRIENDS AND NEIGHBOURS

(a company limited by guarantee) Winter Fuel Payment Crisis — Direct Impact on THFN Clients Our monitoring data for 2024/25 specifically records the winter fuel payment crisis as driving an increase in requests for advocacy support, with clients and their families seeking help understanding entitlements and navigating a system many found bewildering. It is a direct illustration of how national policy decisions land on the front line of a local befriending service. 2.5M 9.1M 10.8M 78% Older people in People aged 66+ Pensioners who lost Disabled pensioners poverty who lost cold at home by Jan the payment in poverty affected support 2025 ~~a2~~ The London Poverty Profile (Trust for London, 2024–25) confirms the structural disadvantage facing older people in Tower Hamlets. Tower Hamlets is the most incomedeprived of all London boroughs: the average neighbourhood is 2.03 times more incomedeprived than the London average, and 2.67 times more deprived than England as a whole. For a borough with Tower Hamlets' demographic profile — a large and growing Bangladeshi elderly population, over 61% of older residents living alone, and 44% lacking digital access — these intersecting pressures are not background context. They are the daily reality of the people THFN exists to serve.

Challenges Facing the Sector in 2024–2025

📉 Resource Squeeze

🧓 Complex Care Needs

🏥 Social Care Crisis

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TOWER HAMLETS FRIENDS AND NEIGHBOURS (a company limited by guarantee)

Workforce Pressures

77% of UK charities continue to report difficulties in volunteer recruitment, with befriending and complex-needs services disproportionately affected. Formal volunteering in England remains below pre-pandemic levels — 14.2 million people formally volunteering in 2021–22 compared to 20 million in 2019–20, with recovery uneven across London's most deprived boroughs. In 2023 THFN restructured the organisation to meet its financial circumstances and registered to become a London Living Wage Employer.

Our Impact in Numbers 2024–2025

----- Start of picture text -----
271 97
Total clients New referrals
supported received
----- End of picture text -----

----- Start of picture text -----
79 88.9%
Average client age Clients with a long-term
(years) health condition
----- End of picture text -----

GENDER DISTRIBUTION

----- Start of picture text -----
Female 56% : Male 44%
56% 44%
----- End of picture text -----

CULTURAL DIVERSITY

----- Start of picture text -----
White UK 37%
Asian Bangladeshi 17%
Black (all groups) 12%
White European 7.5%
Other ethnicities 8%
----- End of picture text -----

The Challenge We Address

Loneliness and social isolation present significant health risks in Tower Hamlets. A higher proportion of older people live alone compared to the national average; an estimated 16% of older residents experience chronic loneliness; and social isolation impacts are comparable to smoking and exceed obesity's health effects. The borough faces unique challenges with higher rates of poverty and diverse ethnic populations.

2.03×

More income-deprived than the London average

61%

----- Start of picture text -----
Older residents living
alone in Tower
Hamlets
----- End of picture text -----

----- Start of picture text -----
44%
Older residents
lacking digital access
----- End of picture text -----

38%

Poverty rate for Black & minority ethnic pensioners

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TOWER HAMLETS FRIENDS AND NEIGHBOURS (a company limited by guarantee)

The Future Landscape

The trajectory is clear — and it points sharply upward. The demands on organisations like THFN will only grow: over-85s are the fastest growing age group in the UK, expected to reach 3.2 million by 2041 — double the current figure. Tower Hamlets' own older population is projected to grow by 44% by 2028. By 2030, 1.2 million people aged 65 and over in England will regularly experience loneliness — a figure with profound consequences for health spending and quality of life.

44%

3.2M

Over-85s in the UK by Growth in Tower 2041 — double today's Hamlets' older figure (ONS) population by 2028

1.2M

~80

People 65+ regularly Years of community lonely in England by service THFN is 2030 (ONS) approaching

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TOWER HAMLETS FRIENDS AND NEIGHBOURS (a company limited by guarantee)

Looking Forward: Strategic Priorities for Investment

Drawing on almost 80 years of community service and robust data from supporting 271 vulnerable older adults in 2024–25, THFN has identified key strategic priorities to enhance our service delivery and community impact.

🚀Innovation in Service 🌍Cultural Competency 🧠Mental Health &
Delivery & Inclusion Dementia Support
→Scaling beyond one-to- →Expanding
culturally		 →Strengthening
capacity
one
befriending
to		 adapted befriending for for early identification of
telephone,
online
&		 older men and Somali cognitive decline
home-from-hospital community →Deepening partnerships
models →Targeted outreach using with
memory
services
→Piloting
ethical
AI		 trusted
community		 and dementia cafés
companion tools for 20 relationships
and		 →Equipping
befrienders
clients in 2025–26 multilingual capacity with specialist cognitive
→Active THFN presence in →Formal partnerships with stimulation skills
all 20 Tower Hamlets cultural
community		 →Expanding support for
wards by March 2026 organisations families
and
carers
→Moving from counting →Language-matched navigating diagnosis
outputs to measuring real befriending and heritage-
wellbeing outcomes rooted activities
🤝 Volunteer Excellence 📣 Systems Change & 📈Impact Measurement
Programme Advocacy →Tracking wellbeing using
→Goal to double volunteer →Building an Age Friendly the Rockwood Clinical
numbers by 2028 Tower Hamlets — a Frailty
Scale
and
→Comprehensive
new
training
in
welfare		 borough where ageing
means visibility		 WEMWBS
→Monitoring
service
navigation, dementia & →Challenging
age-based		 accessibility and cultural
safeguarding discrimination in housing, competency outcomes
→Creating specialist and health and social care →Pursuing
Befriending
micro-volunteering roles →Improving
accessibility		 Network Kitemark Award
for flexible commitment for digitally excluded & →Pursuing Trusted Charity
→Building
a
culture
of
recognition, peer support		 physically
housebound
residents		 accreditation
through
NCVO
& development →Contributing to local and
national loneliness policy
development

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TOWER HAMLETS FRIENDS AND NEIGHBOURS (a company limited by guarantee)

Nearly 80 Years of Service. More Essential Than Ever.

The coming three years represent the most ambitious phase in THFN's nearly 80-year history. We approach them clear-eyed about the challenges — funding pressures, rising demand, workforce complexity — and with justified confidence in our capacity to meet them. Through sustained investment in these priority areas, THFN will deepen its impact, extend its reach, and secure its position as Tower Hamlets' essential, irreplaceable partner in the fight against loneliness and isolation.

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TOWER HAMLETS FRIENDS AND NEIGHBOURS (a company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT FOR THE 15 MONTH PERIOD ENDED 30 June 2025

Financial Review

The fundraising environment remained challenging in the 15month period to 30 June 2025. Our income for the period was £189,606, compared to £159,923 in the previous financial year. Our cost saving measures continued, resulting in costs for the 15month period at £210,475 being proportionately lower than those for the previous financial year at £189,154. We incurred significant costs in the period to June 2025 due to the need to replace and upgrade our client data recording system

The deficit for the period to June 2025 was £20,868, and a reduction in our reserves from £72,971 to £52,103.

We closed the year with a bank balance of £59,971 and income owing to us of £12,210. (£81,731 cash at bank at 31 Match 2024) and had deferred restricted income to support us in the new financial year of £13,827 (nil: 31 March 2024).

Looking ahead, we have made encouraging early progress in 2026-27. We have secured a significant co-funded partnership with the Mercers Company to develop our “Connected Lives” integrated health and wellbeing programme, targeting housebound older people with the most complex needs. We have also secured funding for a Volunteer Development Coordinator and are developing new income streams through individual giving and community fundraising as set out in our Business Plan 2025-2028. The fundraising environment remains difficult, but our track record, our community relationships, and the strength of our impact evidence give us grounds for cautious optimism.

The trustees are pleased to report that the organisation has been able to maintain the level of service to our clients, especially those who are vulnerable and isolated, whilst concentrating on approaching as many organisations as possible for renewed funding.

We cannot thank our staff and volunteers enough for the commitment they have given to us during this difficult time.

Reserves Policy

The Board of Trustees has examined the organisation’s requirements for reserves in the light of the main risks to the organisation. Alongside the funding issues identified above, it recognises the support needs of our client group who are particularly vulnerable, and the time needed to find and arrange alternative ways to address these needs in the event of the cessation of activities. It reviews the reserves policy quarterly having regard to the financial risks and contractual obligations associated with the employment of staff and any other contractual requirements.

At 30 June 2025 the charity had reserves of £52,103. The budgeted costs for the year to 30 June 2026 are estimated at £168,000, therefore representing a shortfall to our reserves target of six months of expenditure.

Going concern

After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, the trustees continue to adopt the going concern basis in preparing the financial statements.

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TOWER HAMLETS FRIENDS AND NEIGHBOURS (a company limited by guarantee)

Structure, governance and management

Governing Document

The organisation is a charitable company limited by guarantee and is also a registered charity. The company was established by a Memorandum of Association which established the objects and powers of the charitable company and is governed by its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.

The trustees have made an application to the Charity Commission for the conversion of the company to a Charitable Incorporated Organisation (CIO).

Recruitment and Appointment of Board of Trustees

The directors of the company are also charity trustees for the purposes of charity law and under the company’s Articles are known as the Board of Trustees. At each Annual General Meeting one third of the members of the Board of Trustees both elected and co-opted shall retire but all are eligible for re-election. Those longest in office since co-option or election shall retire first. In the case of an equal period of service in default of agreement those to be retired shall be selected by lot. At an Annual General Meeting the Board of Trustees may elect two of its members as Chair and as Treasurer, each to serve for an initial period of three years. At the Annual General Meeting marking the end of his/her first three years in office the Chair and/or the Treasurer shall retire from office, but each is eligible for re-election for a further three- year period. A Chair or Treasurer shall normally retire from office after a six- year period in office.

The Board of Trustees seeks to ensure that the charity’s client group and the ethnic diversity of Tower Hamlets are appropriately reflected on the Board. It also tries to ensure a good mix of skills from the business, social and health care and voluntary sectors. The Board regularly carries out a skills audit and has an ongoing policy of identifying suitable potential Board members who can be approached to offer themselves for election to the Board as and when required. During the period to 30 June 2025, three of our trustees stood down and no new trustees have been appointed.

New trustees receive a trustee handbook and would normally attend an induction day which includes visiting clients with a Befriender as well as meetings with the Chair and Chief Executive.

Organisational Structure

The organisation has a Board of Trustees of not less than five and not more than twelve persons (currently 6), elected by the members of the Company at the Annual General Meeting, and not more than three additional co-opted members. The Company Secretary, who is also the Chief Executive of the organisation, attends Board meetings but has no voting rights. The Board of Trustees has overall responsibility for the strategic direction, policy and human and financial resources of the organisation. It meets at least four times a year. Day to day operational management of the organisation is delegated by the Board of Trustees to the Chief Executive, who is responsible for ensuring that the organisation delivers the services specified through its team of staff.

Risk Management

The Board of Trustees has reviewed the major risks to which the organisation is exposed and developed a risk matrix which is reviewed regularly at Board meetings. Internal and external

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TOWER HAMLETS FRIENDS AND NEIGHBOURS (a company limited by guarantee)

risks have been identified and action taken to mitigate these to best ensure that the charity is able to carry out its purposes as securely and efficiently as possible. All procedures are reviewed on an ongoing basis to safeguard the charity’s assets, to ensure the health and safety of staff, volunteers, clients and visitors in the offices and in clients’ homes, and in relation to data protection and confidentiality.

Fundraising policy

We have not made any appeals or solicited funding from the general public in the year. We do not use any professional fund-raisers to carry out any activities on our behalf. Through our website we have an ongoing request for funds, and have provided a link via Local Giving, for individuals to support us but funds from this source are very limited. We are aware of the Fundraising Regulator’s Code of Fundraising Practice and will not put undue pressure or unreasonably intrude on anyone to make a gift. Any appeals we make in the future for donors will be developed with respect to our current and potential donors as well as for the people we are here to support. We have not received any fundraising complaints from our donors.

Public Benefit

The trustees have given due consideration to the Charity Commission’s published guidance on the Public Benefit requirements under the Charities Act 2011.

Safeguarding

The trustees take their safeguarding responsibilities seriously. THFN works with vulnerable older adults, many of whom have complex health needs and limited social support networks, and we recognise that robust safeguarding practice is fundamental to the trust our clients, their families, and our partners place in us.

During the 15-month period covered by this report, two safeguarding concerns were raised relating to beneficiaries. Both were assessed as Level 1 concerns and were handled in accordance with our safeguarding policy and the Tower Hamlets Safeguarding Adults Board procedures. In each case the appropriate referrals and follow-up actions were taken, and the matters were resolved satisfactorily.

In addition, one serious incident not relating to a beneficiary occurred during the period and was reported to the Charity Commission in accordance with our legal obligations under the Charities Act 2011. The trustees managed this matter in line with regulatory requirements. We are satisfied that the appropriate steps were taken and that the incident did not affect the safety or welfare of any of the people we support.

All staff and volunteers undertake safeguarding training as part of their induction, and this is refreshed regularly. Our Designated Safeguarding Lead ensures that our policies and procedures remain current and aligned with the Tower Hamlets Safeguarding Adults Board framework.

Our safeguarding policy was reviewed in March 2026 and updated to reflect changes to the Tower Hamlets Safeguarding Adults Board framework and current best practice guidance. The review confirmed that our procedures remain fit for purpose and proportionate to the risks inherent in our work with vulnerable older adults.

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TOWER HAMLETS FRIENDS AND NEIGHBOURS (a company limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT FOR THE 15 MONTH PERIOD ENDED 30 June 2025

Trustees’ responsibilities in relation to the financial statements

The charity trustees (who are also directors of Tower Hamlets Friends and Neighbours for the purposes of company law) are responsible for preparing a trustees’ annual report and financial statements in accordance with the applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the board of trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure for that period. In preparing the financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable it to ensure the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Board of Trustees of Tower Hamlets Friends and Neighbours and signed on its behalf by:

Anne Worlledge (Director and Trustee)

25 March 2026

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TOWER HAMLETS FRIENDS AND NEIGHBOURS

(a company limited by guarantee)

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES

I report on the accounts of the company for the 15-month period ended on 30 June 2025, which are set out on pages 18 to 26.

Respective responsibilities of trustees and examiner

The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to:

Basis of independent examiner’s report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with my examination, no matter has come to my attention:

(1) which gives me reasonable cause to believe that in any material respect the requirements:

have not been met; or (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Gavin Purvis (FCCA), Chartered Certified Accountant

26 March 2026.

Purvis Stevens LLP, Hayles Bridge Offices, 228 Mulgrave Road, Cheam, Surrey SM2 6JT

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TOWER HAMLETS FRIENDS AND NEIGHBOURS (a company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE 15 MONTH PERIOD ENDED 30 June 2025

Note
Income:
Donations
2
Income from charitable activities
3
Investment income
4
Total income
Expenditure:
Costs of raising funds
5
Expenditure on charitable
activities:
Befriending services
5
Total expenditure
Net income(Expenditure) and net
movement in funds for the year.
14/15
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
£
5,617
-
1,740
7,356
270
27,955
28,225
(20,868)
72,971
52,103		 Restricted
Funds
£
151,000
31,250
-
182,250
11,111
171,139
182,250
(0)
-
(0)		 Total
Total
2025
2024
£
£
156,617
129,066
31,250
29,167
1,740
1,690
189,606
159,923
11,381
21,206
199,094
167,948
210,475
189,154
(20,868)
(29,231)
72,971
102,202
52,102
72,971

Statement of Financial Activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

Continuing Operations

None of the company’s activities were acquired or discontinued during the above two financial periods.

The notes on pages 20-26 form part of these financial statements.

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TOWER HAMLETS FRIENDS AND NEIGHBOURS (a company limited by guarantee)

BALANCE SHEET AS AT 30 June 2025

Note
Fixed Assets
Tangible fixed assets
10
Total Fixed Assets
Current assets
Debtors
11
Cash at bank and in hand
12
Total current assets
Liabilities
Creditors due within one year
13
Net current assets
Total assets, less current liabilities
Net assets		 30 June
31 March
2025
2024
£
£
-
-
-
-
12,210
-
59,971
81,731
72,181
81,731
(20,079)
(8,760)
52,102
72,971
52,102
72,971
52,102
72,971

The notes on pages 20-26 form part of these financial statements.

For the 15 month period ending 30 June 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors’ responsibilities:

Approved by the Directors on 25 March 2026

Anne Worlledge - Director and Trustee

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TOWER HAMLETS FRIENDS AND NEIGHBOURS (a company limited by guarantee)

NOTES TO THE ACCOUNTS

FOR THE 15 MONTH PERIOD ENDED 30 June 2025

1. Accounting policies

The principal accounting policies adopted are summarised below. The accounting policies have been applied consistently throughout the year and in the preceding year.

Tower Hamlets Friends and Neighbours meets the definition of a public benefit entity under FRS 102. Assets and liabilities are recognised at historical cost, or transaction value, unless otherwise stated in the relevant accounting policy notes.

Restricted funds are subject to the restriction on their expenditure imposed by the donor or through the terms of an appeal.

In accordance with the Charities SORP FRS 102, the general volunteer time provided by volunteers has not been recognised and refer to the trustees’ annual report for more information about their contribution.

20

TOWER HAMLETS FRIENDS AND NEIGHBOURS (a company limited by guarantee)

e. Interest receivable

Investment income is included when receivable and the amount can be reliably measured by the charity; this is normally upon notification by the bank.

f. Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

All expenditure is inclusive of irrecoverable VAT.

No assets were held by THFN as a custodian.

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

21

TOWER HAMLETS FRIENDS AND NEIGHBOURS (a company limited by guarantee)

2 Donations and legacies

All of the charity’s voluntary income was received in the form of grants and donations. While the charity receives a small portion of this income in the form of unsolicited donations, it generates much the greater part by application to charitable trusts and statutory bodies.

3 Income from charitable activities

The charity was in receipt of income from certain performance related grants ancillary to the delivery of its charitable activities. Income from charitable activities comprises a grant from the London Borough of Tower Hamlets (2025: £31,250; 2024: £29,167).

4 Investment income

Income from investments
Bank interest		 Unrestricted
£
-
1,740
1,740		 Restricted
£
-
-
-		 June
March
2025
2024
£
£
-
-
1,740
1,690
1,740
1,691

22

TOWER HAMLETS FRIENDS AND NEIGHBOURS

(a company limited by guarantee)

5 Total resources expended:

Cost of raising funds
Staff costs
Sundry costs
Cost of charitable activities
Staff costs
Transport and travel
Outings with clients
Telephone
Postage and stationery
Recruitment costs
Marketing
Training
Support costs allocated to
charitable activities
General support:
Staff costs
Premises
Insurance
Sundry expenses
Computer support
IT and systems upgrade
Payroll costs
Governance cost:
Independent examiners fee
Other governance costs
Total expenditure		 Befriending Services
6 Net income for the year
June March
2025 2024
This is stated after charging: £ £
Independent Examiner's fee 1,500 1,500

23

TOWER HAMLETS FRIENDS AND NEIGHBOURS (a company limited by guarantee)

7 Analysis of staff costs, trustee remuneration and cost of key personnel

Salaries and wages
National Insurance contributions
Pension costs		 June
March
2025
2024
£
£
134,179
121,508
26,927
33,214
4,768
7,529
165,873
162,251

No employee received employee benefits of more than £60,000 (2024: nil).

The trustees were not paid, or received, any benefits from employment with the charity or reimbursed for expenses during the year (2024: nil).

The employee benefits of the key management personnel of the charity were £35,589. (2024: £65,685).

The average number employees (and full-time equivalent), analysed by function was:

Management
Service delivery		 June
March
Full time
Full time
Average
Equivalent
Average
Equivalent
1
0.6
1
1
5
3.8
5
3.9
2025
2024

8 Taxation

As a charity, Tower Hamlets Friends and Neighbours is exempt from tax on income and gains falling within Section 505 of the Taxes Act 1988 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charge has arisen within the charity.

9 Related party transactions

There were no related party transactions during the year (2024: nil).

24

TOWER HAMLETS FRIENDS AND NEIGHBOURS (a company limited by guarantee)

10 Tangible fixed assets

Fixtures and office equipment
Cost at 1 April 2024
Additions
Cost at 30 June 2025
Depreciation
As at 1 April 2024
Charge for the year
As at 30 June 2025
Net book value:
At 31 March 2024
At 30 June 2025		 30 June
2025
£
925
-
925
925
-
925
Nil		 31 March
2024
£
925
-
925
925
-
925
Nil

11 Debtors

Accrued income
Prepayments		 June
March
2025
2024
£
£
12,210
-
-
-
12,210
-

12 Cash and cash equivalents

Cash in hand June
March
2025
2024
£
£
59,971
81,731
59,971
81,731

25

TOWER HAMLETS FRIENDS AND NEIGHBOURS

(a company limited by guarantee)

13 Creditors: amounts falling due within one year

Deferred income
Taxation and social security costs
Holiday pay
Accruals		 June
March
2025
2024
£
£
13,827
-
1,894
1,639
2,859
3,800
1,500
3,321
20,079
8,760

Deferred income represents grants attributable to the following accounting period.

Balance at 1 April
Amount released to income
Amount deferred in the year
Balance at 30 June 2025 / 31 March 2024		 June
March
2025
2024
£
£
(0)
47,824
0
(47,824)
(13,827)
0
(13,827)
(0)

14 Movement in unrestricted funds

Balance at 1 April
Incoming resources
Resources expended
Funds at 30 June 2025 / 31 March 2024		 General Fund
2025
2024
£
£
72,971
102,202
7,356
8,065
(28,225)
(37,296)
52,102
72,971

15 Movement in restricted income

Movement in Restricted Income
Garfield Weston Foundation
City Bridge Foundation
LB of Tower Hamlets
The Postcode Lottery
Gill Hickinson Trust
Mercers
Awards for All
Islamic Relief		 1 April 2024
£
-
-
-
-
-
-
-
-
-		 Income
£
15,000
49,400
31,250
25,000
2,500
29,250
20,000
23,677
196,077		 Expended
£
(15,000)
(49,400)
(31,250)
(25,000)
(2,500)
(29,250)
(20,000)
(9,850)
(182,250)		 Transfer to
Unrestricted
30 June 2025
£
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13,827
-
13,827

26

TOWER HAMLETS FRIENDS AND NEIGHBOURS (a company limited by guarantee)

Funders and supporters

The Trustees and the staff of Tower Hamlets Friends and Neighbours would like to thank all of those charitable foundations and organisations, and people, who make our work possible. Without your support, we would not be able to do the work that we do, to support the elderly and vulnerable residents of Tower Hamlets.

Thank you also to our excellent staff, volunteers and community partners - all working with skill, dedication and passion to improve people’s lives - and to our partners in health, social care, and commissioners in our local authority.

Finally, our biggest thank you is to our clients, the reason THFN exists, and who make our jobs fulfilling.

Thank you.

----- Start of picture text -----
Garfield Weston London Borough of People's Postcode
City Bridge Foundation
Foundation Tower Hamlets Lottery
National Lottery Awards
Gill Hickinson Trust Islamic Relief
Mercers' Company for All
.
----- End of picture text -----

27