2025-07-31-accounts - Power2 Ltd

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Power2 Ltd

FINANCIAL STATEMENTS

12 MONTHS ENDED 31 JULY 2025

REGISTERED CHARITY NUMBER: 1099782 (England and Wales)

COMPANY NUMBER: 4001308

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Power2 Ltd

These financial statements cover the 12-month period from 1 August 2024 to 31 July 2025.

2024-25 was a year of consolidation for Power2 with revenue of £2,382,536 vs £2,359,821 in 2024. We worked with nearly 1,300 children and young people. 97% of those we worked with had social, emotional and mental health (SEMH) vulnerabilities, 92% were living in poverty, 30% had special educational needs (SEND), and 17% of those we worked with were care-experienced or supported by a social worker. We’re also seeing a change in the way these vulnerabilities impact on our programme participants; we’re supporting many more at risk of exploitation or where their anxiety impacts their school attendance.

We finished the second year of our three-year strategy well on the way to achieving our ambitious growth plans. Our flagship group programme, Teens and Toddlers, continues to be in high demand from schools and we were delighted to be featured by the BBC’s Morning Live programme and in the Sunday Times. We launched our new group programme, Power2 Energise, where young people use movement and physical activity to mentor younger children. Our Power2 Rediscover intensive 1:1 approach continues to be widely used, both as our own 10-week programme being delivered in schools and as an intervention commissioned by local authorities where we provide support for up to three years, and we were delighted with the findings of two external evaluations into its efficacy. One, from ProBono Economics and the University of Manchester provided a value for money assessment of Power2 Rediscover and found that it could be improving wellbeing by the equivalent of 1.2 life satisfaction points (around twice the size of the impact measured for adults getting a job after being unemployed). The second, from the University of Sunderland, found that Power2’s work with young people provided significant protective factors to their accessing and remaining in mainstream school. Our relaunched website highlighted all this and more, and we were pleased to receive praise for its accessibility and ability to showcase our great work.

Power2 is nothing without its people, and so we were all affected by the untimely death of one of our brilliant Programme Leads, Khalil Taipow, at the end of 2024. We have introduced a special award at our annual graduation ceremonies in his memory - the Khalil Taipow for Role Model of the Year- which we presented this for the first time in summer 2025.

Our focus for the next year - the final year of our strategy – is threefold: to work more with alternative provision settings, school sales, to increase our focus on mid-and major individual giving, and to launch our organisational culture project, ensuring that we continue to make Power2 a great place to work. I’m confident that we can achieve these aims and improve outcomes for those we work with this year.

2026 marks our 25[th] year, and we are delighted to have been joined for it by a new Chair of Trustees, Michael Francies, who will be helping steer us through our next phase. Our 25[th] year also marks the end of our current strategy, and so Michael and his fellow trustees will be working with Power2’s senior management team to develop the strategy for the next phase of our growth.

The work we do at Power2 changes lives. I’m incredibly proud of the staff team, their skill and determination in making a difference to the lives of our programme participants and, above all, the children and young people we work with and everything they have achieved.

Docusign EnvelopÈ ID". FF212F58-OB3A4BF8-90A9-2189D767C094 Julie Randles CEO Power2 Ltd

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Report of the Trustees for the 12 Months ending 31 July 2025

The Trustees are pleased to present their Trustees’ Report together with the audited financial statements of the charity for the 12 months ending 31 July 2025, which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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.

Our purposes and activities

The purpose of the charity is to foster and support the education, health, opportunity and development of children and young people. We believe there is no greater cost to society than unfulfilled potential. We support children and young people at key transition points to achieve their potential by developing crucial life skills, boosting confidence and improving self-esteem. Among our programmes are the award-winning Teens and Toddlers programme and Power2 Rediscover, a programme developed during COVID when group work in schools was not possible. There have been no changes to the Charity’s objectives during the year. The Charity is a public benefit entity. The Trustees have had regard to the Charity Commission’s guidance on public benefit.

Strategic Report - Achievements and performance

In the period to July 2025, we worked in 34 local authorities and 99 secondary schools.

Financial review

Power2 had a surplus of £35,226 for the 12 months to July 2025. For the 12 months to July 2024 our audited surplus was £90,159. Financial sustainability is the main financial risk faced by the Charity. Securing grants is increasingly difficult as competition is extreme. The development of commissioned incomes sources can mitigate these risks but commissioned revenues are also subject to

uncertainties because they are ultimately dependant on central government funding. On the other hand we have found that by delivering value to Local Commissioners we have been able to secure ongoing multi-year contracts.

Plans for future periods

Over the last two years the Charity has successfully executed its strategy to expand trading and commissioned income and in 2025 this income stream approached 50% of total income. The Trustees expect this change of direction to be built upon over the next years. The funding of the Charity has been realigned to utilise loan facilities to provide the medium to long term working capital needs which local Authority commissioned income streams demand.

Investment powers and policy

The operating management, taking into account the liquidity requirements of operations, have kept available funds in an interest-bearing deposit account and seek to achieve a rate on deposit which matches or exceeds inflation as measured by the retail prices index.

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Reserves Policy

Power2 must ensure its long-term sustainability, viability, and success. In determining the reserves policy the Trustees have considered the current economic conditions and the risks to key funding sources. The Trustees have also considered the organisation’s core financial responsibilities. The Trustees have agreed that the Charity’s objective is to have free cash reserves of no less than 3 months and no more than 6 months normal operating expenditure in order to continue to operate programmes. Normal operating expenditure for this purpose excludes expenditure which is covered by restricted reserves. Reserves held at 31 July 2025 are £491,939 (2024: £456,713). Of these £306,459 were unrestricted (2024: £256,340) and £185,480 restricted (2024: £200,373) as at 31 July 2025.

The Trustees are satisfied with the level of unrestricted reserves.

The Trustees have no material concerns relating to the ability of Power2 to continue to operate as a going concern.

In setting its budgets, level of charges for services and in negotiating the level of funding for grants, Power2 takes account of the need to maintain adequate reserves. The Board of Directors and the Finance Committee monitor whether the level of income is appropriate to establish and maintain reserves in line with this policy through the processes of annual budgeting, periodic management accounts and cash flow reporting. The reserves policy is regularly reviewed by the Board.

Reference and administrative details	Reference and administrative details
Charity number:	1099782
Company number:	4001308
Principal & Registered Office:	26A Warrington Street, Ashton-under-Lyne, Tameside, OL6 6AS

Directors and Trustees

The directors of the charitable company (the charity) are its trustees for the purpose of charity law. The trustees and officers serving during the year and since the year end were as follows:

Chair	Michael Francies (appointed 4 June 2025)
Trustees	Amira Shariif Ali
	Emily Wells (appointed 20 September 2024)
	Gemma Carroll (resigned 28 March 2025)
	James Potter
	Juliette Wilson-Thomas (appointed 20 September 2024)
	Lara Norris (appointed 12 October 2024)
	Lauren Livingston
	Michael Hartig (appointed 12 October 2024)
	Reena Gogna
	Shazia Latif Book (appointed 12 October 2024)
	Troels Henrikson (appointed 20 September 2024)
	Wendy Doherty (appointed 20 September 2024, resigned 19 January
	2025)

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Company Secretary Julie Randles Chief Executive Julie Randles Auditors MHA 910 The Crescent, Colchester Business Park, Colchester, Essex, CO4 9YQ Bankers Unity Trust Bank PO Box 7193, Planetary Road, Willenhall, WV1 9DG Barclays Bank plc, Borough High Street, London, SE1 1LY. accounts closed February 2025 Senior Management Team Paul Hopkins - Finance Director Samantha Marcus - Director of Services Jennifer Smith – Head of Operations Sam Broderick – Head of Fundraising Danielle Garwood – Head of Brand, Marketing and Communications Suzanne Kennedy – Head of Service Delivery

Fundraising

The Charity does not use any professional fundraisers other than those individuals employed by the Charity. During the financial period 2024-25 the charity paid due regard to its fundraising practices in line with the guidelines set out by the Fundraising Regulator’s Fundraising Code of Practice. There were no complaints made against the charity regarding fundraising practices. Fundraising is monitored by the Trustees.

We would like to thank all our funders, some of whom are listed below. Other not listed prefer to remain anonymous.

Alex Ferry Foundation Antin Infrastructure Partners Bagley Cottage Charitable Trust Breathe HR Brian Wilson Charitable Trust Charles and Elsie Sykes Trust Charles Hayward Foundation Clarion Futures Communities Compass Leading CVC Foundation Derwent London Community Fund EET Fuels Eleanor Rathbone Charitable Trust Fair Education Alliance Garfield Weston Foundation Good Business Greenwich Healthier Communities Fund Heathrow Community Trust John Lyon’s Charity

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Leathersellers' Foundation Manchester Airport Community Trust Fund Marjory Boddy Charitable Trust Moorhouse Consulting Newcomen Collett Educational Foundation North West Young People's Development Trust npower Business Solutions Foundation Paul, Weiss, Rifkind, Wharton & Garrison LLP Pilkington Charities' Fund Progress Foundation Prudence Trust Sam Griffiths Foundation Sanghera Foundation Sir Donald and Lady Edna Wilson Charitable Trust Sir James and Lady Scott Trust Somers Town Big Local Swire Charitable Trust Tesco Community Grants The Childhood Trust The Keith Howard Foundation The Maudsley Charity The National Lottery Community Fund The Topinambour Trust The Walcot Foundation UK Youth Youth Endowment Fund W1M Weil, Gotshal and Manges LLP (London)

Structure, Governance and Management

Governing Document

Power2 is a company limited by guarantee governed by its Memorandum and Articles of Association dated May 2000. It is registered as a charity with the Charity Commission.

Trustee induction and training

New trustees receive an induction pack and undergo orientation to brief them on their legal obligations under charity and company law, the Charity Commission guidance on public benefit, and inform them of the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performance of the charity. During the induction they meet key employees and other trustees. The intention is also that they visit one of our programmes in action.

Organisation

The board of trustees administers the charity. The Board normally meets five times per year and during the period covered by these accounts there were sub-committees for finance and

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risk, (Finance and Risk Committee) and safeguarding (Safeguarding Committee). The Chief Executive is appointed by the trustees to manage the day-to-day operations of the charity and to delegate through the Senior Management Team (SMT). The delegated authority scheme is agreed by the Board and reviewed every 3 years.

Related parties and co-operation with other organisations

None of our trustees receive remuneration or other benefit from their work with the charity.

Indemnity Insurance

Professional indemnity insurance is paid on behalf of the Trustees to protect them from claims arising from negligent acts, errors, or omissions while on charity business.

Pay policy for senior staff

The Directors consider that the board of directors - who are the Charity’s trustees- the Chief Executive and the senior management team, comprise the key management personnel of the Charity in charge of directing and controlling, running and operating the Charity on a day-to-day basis. All directors give of their time freely and no director received remuneration in the year. The pay of the Chief Executive is reviewed annually by the Remuneration Committee (2 trustees) with approval by the Trustee Board and increased in accordance with average earnings, where relevant, and benchmarked against other similar charities.

Risk management

The Trustees have a risk management strategy which comprises:

a risk register which is reviewed by the full Board at each meeting along with a list of changes since the previous Board meeting.
A regular review of the principal risks and uncertainties that the charity is subject to by the main Trustee Board.
the establishment of policies, systems and procedures to mitigate those risks identified in the annual review; and
the implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.
a Finance Committee comprising 3 trustees which meets separately from the main Board to review financial forecast in detail as well as other financial risks.

The principal risks of the Charity identified by the Trustees include the availability of funding for projects and the safeguarding risks arising in relation to the teenagers and young children involved in the projects. These risks are mitigated by active financial management and by robust policies and procedures in respect of selection and training of staff working with young people.

Trustees’ responsibilities in relation to the financial statements

The charity trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP (FRS 102);
make judgements and estimates that are reasonable and prudent;
state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

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

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Disclosure of information to the auditors

We, the directors of the company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that:

there is no relevant audit information of which the company’s auditors are unaware; and
we have taken all the steps that we ought to have taken as directors to make ourselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

In approving the Trustees' Annual Report, we also approve the Strategic Report included therein, in our capacity as company directors.

On behalf of the board Michael Francies Chair of Trustee Board

By order of the Board of Trustees Date 27 March 2026

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Independent Auditor’s Report to the Members of Power2 Ltd

Opinion

We have audited the financial statements of Power2 Limited (the 'charitable company') for the year ended 31 July 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

In our opinion the financial statements:

• give a true and fair view of the state of the charitable company’s affairs as at 31 July 2025 and of its incoming resources and application of resources for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

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The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

• the information given in the Trustees' Report is inconsistent in any material respect with the financial statements; or

sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in

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the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

• Enquiry of management around actual and potential litigation and claims;

• Enquiry of management to identify any instances of known or suspected instances of fraud;

• Enquiry of management to identify any instances of non-compliance with laws and regulations;

• Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;

• Reviewing minutes of meetings of those charged with governance;

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Cara Miller ACCA , Senior Statutory Auditor for

MHA, Statutory Auditor

Colchester, United Kingdom

Date: March 31, 2026

MHA is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542).

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Power 2 Ltd

STATEMENT OF FINANCIAL ACTIVITIES AND INCOME AND EXPENDITURE ACCOUNT

Income and endowments from: Grants and Legacies Grants Donations and events Charitable activities Income from commissioned services Investments	Notes 1 1 1	Unrestricted Restricted Funds Funds Total £ £ £ 199,361 629,252 828,613 99,586 - 99,586 298,947 629,252 928,199 1,444,636 - 1,444,636 12 Months Ending July 2025	Unrestricted Restricted Funds Funds Total £ £ £ 199,361 629,252 828,613 99,586 - 99,586 298,947 629,252 928,199 1,444,636 - 1,444,636 12 Months Ending July 2025	Unrestricted Restricted Funds Funds Total £ £ £ 199,361 629,252 828,613 99,586 - 99,586 298,947 629,252 928,199 1,444,636 - 1,444,636 12 Months Ending July 2025	2024 Total £ 923,893 96,536
					1,020,429 1,335,406
Bank interest receivable Total Income and endowments	1	9,701	-	9,701	3,986
		1,753,284	629,252	2,382,536	2,359,821

RESOURCES EXPENDED
RaisingFunds Charitable activities	5 3	216,185 1,486,980	- 644,146	216,185 2,131,125	231,094 2,038,568
Total expenditure Surplus		1,703,164 50,119	644,146 (14,893)	2,347,310 35,226	2,269,662 90,159
Transfers between funds	11	-	-	-	-
NET INCOMING/(OUTGOINGS) RESOURCES FOR THE YEAR		50,119	(14,893)	35,226	90,159
Reconciliation of funds Total funds brought forward		256,340	200,373	456,713	366,554

Balances carried forward at the end of theperiod		306,459	185,480	491,939	456,713

All income and expenditure derive from continuing activities.

The notes on pages 17 to 24 form part of these financial statements.

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Power2 Ltd

Balance Sheet for the 12 Months Ending 31 July 2025

FIXED ASSETS Computer equipment CURRENT ASSETS Debtors Cash at bank and in hand	Notes 7 8	£ £ 24,077 164,914 642,134 807,048 At 31 July 2025	£ £ 24,077 164,914 642,134 807,048 At 31 July 2025	£ £ 23,084 336,462 541,248 At 31 July 2024	£ £ 23,084 336,462 541,248 At 31 July 2024
CREDITORS:Amounts fallingdue				877,711
within oneyear	9	168,476		210,931

NET CURRENT ASSETS			638,572		666,780
Loans falling due after more than one year	12		170,710		233,151

NET ASSETS			491,939		456,713


FUNDS Unrestricted General fund Restricted	11		306,459 185,480		256,340 200,373
TOTAL FUNDS			491,939		456,713

The Financial Statements were approved and authorised for issue by the Board on 27 March 2026.

Signed on behalf of the Board of Trustees

Michael Francies

Chair of Board of Trustees

Date 27 March 2026

The notes on pages 17 to 24 form part of these financial statements

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Power2 Ltd

Statement of Cash Flows for the 12 Months Ending 31 July 2025

Cash flow from operatingactivities Adjustments for: Depreciation Interestpaid Interest received Increase in debtors Increase in creditors	12 Months to July 2025 £ 35,226 14,118 21,081 (9,701) 171,548 (42,455)	12 Months to July 2024 £ 90,159 11,856 11,206 (3,986) (156,713) (31,861)
Net cash flow from operating activities	189,818	(79,339)
Cash flow from investingactivities Purchase of tangible assets	(15,111)	(11,748)
Interest received	9,701	3,986

Net cash flow from investing activities	(5,410)	(7,762)

Cash flows from financing activities New loan advance Repayment of loans	(62,441)	236,900 (26,717)
Interestpaid Net cash from financing activities Net increase /(decrease) in cash and cash equivalents	(21,081)	(11,206)
	(83,522) 100,886	198,977 111,876

Cash and cash equivalents brought forward at beginningofperiod	541,248	429,372

Cash and cash equivalents carried forward at end ofperiod	642,134	541,248

The notes on pages 17 to 24 form part of these financial statements

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Power2 Ltd

Note 1 Summary of significant accounting policies

(a) General information and basis of preparation

Power2 is a charitable company limited by guarantee incorporated in England and Wales. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 5 of these financial statements. The nature of the charity’s operations and principal activities are to foster and support the education, health, opportunity and development of children and young people. We run programmes where teenagers mentor young children, and build the life skills and self-belief they need to succeed at school, in work and in the community. There have been no changes to the Charity’s objectives during this year.

The charity constitutes a public benefit entity as defined by FRS 102.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011, the companies Act 2006 and UK Generally Accepted Practice.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £1.

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

(b) Funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

(c) Income recognition

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.

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For donations to be recognised, the charity will have been notified of the amounts and the settlement date in writing. It there are conditions attached to the donations 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.

Donated facilities, assets and professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity, for example the amount the charity would be willing to pay in the open market for such facilities, assets and services. A corresponding amount is recognised in expenditure.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102).

Where practicable, gifts in kind donated for distribution to the beneficiaries of the charity are included in stock and donations in the financial statements upon receipt. If it is impracticable to assess the fair value at receipt or if the costs to undertake such a valuation outweigh any benefits, then the fair value is recognised as a component of donations when it is distributed and an equivalent amount recognised as charitable expenditure.

For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. 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.

Grant income is recognised when the charity is entitled to the income, receipt is probable and the amount can be measured reliably. Where grants are subject to performance-related conditions, income is recognised only when those conditions have been met. Grants received in advance are deferred until the charity becomes entitled to the income. Grants subject only to restrictions on use are recognised as restricted income when entitlement arises.

Investment income is earned through holding assets for investment purposes. It includes interest and interest income is recognised using the effective interest method and included when receivable.

(d) Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and that amount of the obligation can be measured reliably. It is categorised under the following headings:

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Costs of raising funds includes fundraisers’ salaries and costs associated with applying for funds
Power2 capitalises computer equipment with monetary value of greater than £500. Capitalised assets are written off over 3 years on a straight line basis. As such, capital purchases of less than this amount are recognised through the Statement of Financial Activities and Income and Expenditure Account.
Expenditure on charitable activities includes delivery costs.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

(e) Support costs allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters. Where support costs cannot be directly attributed to particular headings they have allocated to cost of raising funds and expenditures on charitable activities on a basis consistent with use of the resources. Overheads have been allocated as detailed in note 3.

Fund-raising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.

The analysis of these costs is included in note 4.

(f) Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

(g) Financial Instruments

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

(h) Provisions

Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

(i) Leases

Rentals payable and receivable under operating leases are charged to the SoFA on a straight-line basis over the period of the lease.

(j) Employee pensions and benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount

Docusign Envelope ID: FF212F58-0B3A-4BF8-90A9-2189D767C094

expected to be paid in exchange for that service. Where employees are informed of redundancies by balance sheet date, provisions are included in the financial statements.

The charity operates a defined contribution pension plan for the benefit of its employees. Contributions are expensed as they become payable in accordance with the rules of the scheme.

(k) Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

(l) Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

(m) Judgements and key sources of estimation uncertainty

The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements:

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material, adjustment to the carrying amounts of assets and liabilities within the next financial year include the valuation of deferred income in creditors. The trustees have reviewed the deferred income and are satisfied that this is valued in accordance with the accounting policies.

Docusign Envelope ID: FF212F58-0B3A-4BF8-90A9-2189D767C094

Power2 Ltd

Notes to the Financial Statements for the 12 Months to 31 July 2025

1		INCOMING RESOURCES	Unrestricted Funds	Restricted Funds	12 Months to 31 July 2025	2024
			£	£	£	£
	Grants and Legacies
		Grants	199,361	629,252	828,613	923,893
		Donations and events	99,586		99,586	96,536
			298,947	629,252	928,199	1,020,429

	Charitable activities
		Income from commissioned services	1,444,636		1,444,636	1,335,406

	Investments
		Bank interest receivable	9,701	-	9,701	3,986
			1,753,284	629,252	2,382,536	2,359,821

	In thepriorperiod income of £2,359,821 comprised £683,439 restricted and £1,676,382 unrestricted

2	RESOURCES EXPENDED

Costs directly attributable to activities
	Salarycosts				1,539,151	1,498,604
	Project materials				33,917	35,778
	Other deliverycosts				136,868	134,956
	Postage and freight				107	933
	Travel				80,600	64,236
	Training QualityAssurance and Accreditation(inc salaries)				26,465	5,020
	Research and Evaluation(inc salaries)				81,902	74,186
					1,899,009	1,813,714

Support costs allocated to activities
	Bank charges and loan interest				21,081	11,206
	Building,and utilitycosts				2,560	5,732
	Equipment hire andpurchase Insurance Recruitment				(440) 4,716 1,963	405 3,698 2,408
	IT software and web development				91,995	71,836
	Legal andprofessional fees Other				15,055 3,500	22,038 3,020
	Postage, printingand stationery				4,338	3,467
	Rent and rates				47,917	53,953
	Telephone				29,850	32,058
	Audit				12,600	18,528
	Depreciation				14,118	11,856
					249,254	240,205

Total Cost of Charitable Activities					2,148,262	2,053,919

Raising Funds Salarycosts					198,263	210,648
	Communications and PR				785	5,095
	Donor Costs				-	-
					199,048	215,743

TOTAL RESOURCES EXPENDED					2,347,310	2,269,662

Docusign Envelope ID: FF212F58-0B3A-4BF8-90A9-2189D767C094

Power2 Ltd

Notes to the Financial Statements for the 12 Months to 31 July 2025

		Analysis of Expenditure on charitable
3		activities
			Costs directly attributable to activities	Costs directly Support costs	12 Months to July 2025	2024

		Costs directly attributable to activities
		Delivery	1,977,670	153,456	2,131,126	2,038,569

			1,977,670	153,456	2,131,126	2,038,569

4		Allocation of Support costs
			Raising Funds	Delivery	12 Months to July 2025	2024
		Governance	1,329	11,901	13,230	21,932
		Office costs inc Rent	4,721	42,279	47,000	33,178
		Information Technology	5,582	49,989	55,571	64,182
		Other	5,504	49,288	54,792	16,995
			17,137	153,456	170,593	136,287

	Feespaid to the auditors for the audit of the Charity's annual accounts £12,600(2024: £18,528).

5		Raising Funds			12 Months to July 2025	2024
					£	£
		Costs directlyattributable			199,048	215,744
		Support costs			17,137	15,350
					216,185	231,094

6	Staff costs and employee benefits
					12 Months to July 2025	2024
					£	£
	Wages and Salaries				1,558,452	1,551,776
	Social SecurityCosts				144,430	132,653
	Defined contributionpension costs				116,434	99,010
	Total staff wages and salaries				1,819,315	1,783,439

In the period redundancy costs were incurred of £3,202 (2024: £16,737). These costs are included in salaries.

The emoluments of the higher paid employees fell within the ranges indicated below. These emoluments include gross salary and exclude pension contributions.

						12 Months to July 2025		2024
£70,000 to £79		000 to £79,999				1
£80,000 to £89		000 to £89,999						1

During the 12 months accounting period staff over £60,000 received pension benefts of £10,148

The average number of employees analysed by function was:

	Calculated on a Head Count	Calculated on a Head Count
	basis
	12 Months to July 2025	2024
RaisingFunds	5.0	4.3
Charitable activities	58.4	54.5
	63.4	58.8

Key management personel of the charity comprised the trustees of the charity who received no remuneration, and the Chief Executive and senior management team (6 staff). Their combined salaries and pensions totalled £341,457 for the 12 month period ( 2024 - £303,492).

Docusign Envelope ID: FF212F58-0B3A-4BF8-90A9-2189D767C094

Power2 Ltd

Notes to the Financial Statements for the 12 Months to 31 July 2025

7 8	FIXED ASSETS - COMPUTER EQUIPMENT Cost or Valuation Brought forward 1 August 2024 Additions in theperiod Carried forward 31 July 2025 Depreciation Brought forward 1 August 2024 Additions in theperiod Carried forward 31 July 2025 Net book value DEBTORS	At 31 July 2025 £	£ 41,040 15,111
			56,151
			17,956 14,118
			32,074
			23,084
			24,077
			At 31 July 2024 £

	Trade debtors Other debtors	115,759 3,275	249,696 1,839
	Prepayments and accrued income	45,880	84,927
		164,914	336,462

9	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
		At 31 July 2025	At 31 July 2024
		£	£
	Trade creditors	16,903	26,220
	Accruals andprovisions	16,255	43,221
	Other taxation and social security	47,512	41,081
	Deferred income Other loans	27,139 60,667	57,760 42,648
		168,476	210,931
10	Deferred Income The amount of £60,667 includes a Coronavirus Business Interruption Loan (£7,211), secured by the government, repayable by instalments commencingin November 2021 and endingin October 2025(2024 £42,648).
		At 31 July 2025	At 31 July 2024
	At start ofperiod Released to income duringtheyear	57,760 (57,760)	134,159 (134,159)
	Additions duringtheyear	27,139	57,760
	Carried forward 31 July	27,139	57,760

	Deferred income comprises income received in advance of delivery.

Docusign Envelope ID: FF212F58-0B3A-4BF8-90A9-2189D767C094

Power2 Ltd

Notes to the Financial Statements for the 12 Months to 31 July 2025

11 RESTRICTED & UNRESTRICTED FUNDS

Fund Name	Fund Balances b/f £	Income £	Expenditure £	Transfers £	Fund Balances c/f £
Business Development	45,473	40,000	(52,966)		32,507
Power2 Advance	-	48,337	(39,150)		9,187
Power2 Energise	-	50,000	(44,555)		5,445
Power2 Thrive	29,157	247,408	(233,466)		43,099
Other Restricted Funds	125,743	243,507	(274,010)		95,241
Total Restricted Funds	200,373	629,252	(644,146)	-	185,480
Total Unrestricted Funds	256,340	1,753,284	(1,703,164)	-	306,459
Total All Funds	456,713	2,382,536	(2,347,310)	-	491,939

All of the restricted funds represent monies received that have been given specifically towards the advancement of Power2 programmes.

Analysis of net assets between funds

	Unrestricted	Restricted	At 31 July 2025	At 31 July 2024
Fixed assets	24,077		24,077	23,084
Current assets	621,568	185,480	807,048	877,711
Creditors	(168,476)		(168,476)	(210,931)
Longterm creditors	(170,710)		(170,710)	(233,151)
Total	306,460	185,480	491,939	456,713

11a RESTRICTED & UNRESTRICTED FUNDS for the 12 MONTH PERIOD TO JULY 31 2024

	Opening Balance 1	Net Incoming	Charitable	Transfers	Closng Balance
	Aug 2023	Resources	Expenditure	between Funds	31 July 2024
Restricted Funds	119,400	683,439	(602,466)		200,373
Unrestricted Funds	247,154	1,676,382	(1,667,196)		256,340
Total Reserves	366,554	2,359,821	(2,269,662)	-	456,713

Docusign Envelope ID: FF212F58-0B3A-4BF8-90A9-2189D767C094

Power2 Ltd

Notes to the Financial Statements for the 12 Months to 31 July 2025

12	LOANS		At 31 July 2025	At 31 July 2024
			£	£
	Amounts falling due within 1 year		60,667	42,648
	Amounts falling due 1-2 years		57,835	60,906
	Amounts falling due 2-5 years		112,875	172,245
	Other loans		231,377	275,799
	Amounts fallingdue afteryear 1(£57,835plus £112,875)amount to £170,710 as disclosed in the Balance sheet onpage 15
13	RELATED PARTY TRANSACTIONS
	A number of the trustees of the charity are also involved as supporters and trustees of other charities and not for profit
	organisations which may provide grants to Power2. These trustees do not participate in any decisions in relation to these transactions.	organisations which may provide grants to Power2. These trustees do not participate in any decisions in relation to these		organisations which may provide grants to Power2. These trustees do not participate in any decisions in relation to these

14	COMMITMENTS
	OPERATING LEASES
	At 31 July 2025 the Charity had the following annual commitments under non-cancellable operating leases:
	Operating leases which expire: Within one year Within one to two years Within two to five years		Rent & Equipment At 31 July 2025 £ 29,108 27,821 30,733	Rent & Equipment At 31 July 2024 44,498 21,408 8,600
			87,662	74,506
	Operating lease costs in the 12 months to 31 July 2025 were £22,310 (2024: £29,389)
15	COMPANY LIMITED BY GUARANTEE
	Each member of the Charity has guaranteed to contribute up to £1 in the event of a winding up.	Each member of the Charity has guaranteed to contribute up to £1 in the event of a winding up.

16 FUTURE INCOME AND THE CURRENT ECONOMIC CLIMATE

The Trustees consider that the income stream of the Charity will continue as forecast and unplanned expenditure would be minimal. The going concern basis is therefore considered to be appropriate as a basis of accounting.

Analysis of net debt	At 31 July 2024	Cash Flow	At 31 July 2025
Cash at bank	541,248	100,886	642,134
Debt fallingdue within oneyear	(42,648)	(18,019)	(60,667)
Debt fallingdue within more than oneyear	(233,151)	62,441	(170,710)
	265,449	145,308	410,757

18 DIRECTORS' AND OFFICERS' REMUNERATION AND EXPENSES

During the year ending 31 July 2025 £50 was reimbursed to one trustee for travel expenses, no other Trustee expenses have been incurred (2024:Nil)