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← Hospitality Action

2024-12-31-accounts

Hospitality Action

Annual Report and Consolidated Financial Statements

31 December 2024

Company Limited by Guarantee Registration Number 04914871 Charity Registration Number 1101083

Contents

Reports

Reports
Reference and administrative
information 1
Trustees’ report 5
Statement of Trustees’
responsibilities 16
Independent auditor’s report 18
Accounts
Consolidated statement
of financial activities 23
Statement of financial activities
(charity only) 24
Balance sheets 25
Consolidated statement
of cash flows 26
Accounting Policies 27
Notes to the financial statements 31

Hospitality Action

Reference and administrative information

Board of Trustees Jonathan Raggett (Chair)
Jon Dee ACA (Treasurer)
Kevin Charity
Simon Esner
Ringo Francis
Chris Garside
Andrew Guy MBE
Tim Jones
Andrew Latham
Helen Milligan-Smith (appointed 4thJune 2024)
Kate Nicholls OBE
Danny Pecorelli
Ian Sarson
Andrew Selley
David Walker MBE
Chief Executive Mark Lewis
Company secretary Greg Minter
Principal office 62 Britton Street
London
EC1M 5UY
Company registration number 04914871
Charity registration number 1101083
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Bankers Royal Bank of Scotland
Brooklands Close
Sunbury on Thames
TW16 7DX
Investment managers Cazenove Capital Management
1 London Wall Place
London
EC2Y 5AU

Hospitality Action 1

Reference and administrative information

Solicitors H3 Solicitors Ltd Suite 1, The Old Pig Styes, Brighthams Farm, Bines Road, Partridge Green, West Sussex, RH13 HEQ

Hospitality Action 2

Reference and administrative information

The Board of Trustees thanks the Chairpersons and Committee members who gave so generously of their time during 2024:

Finance and Investment Jon Dee ACA (Chair) Lizi Hills Tim Doubleday Tim Jones Grants and Advisory Andrew Latham (Chair) Valerie Barrow Mitchell Collier Flavia Gapper Dawn Jackson Jane Morris Ian Sarson

Hospitality Action 3

Reference and administrative information

The Board of Trustees thanks its Patrons, whose ongoing patronage brings credibility, authority and brand awareness to the charity. These are:

Patrons Jason Atherton Raymond Blanc OBE Heston Blumenthal OBE Michael Caines MBE Jeremy Goring Angela Hartnett OBE Nigel Haworth Paul Heathcote MBE Charlie Hodson Tom Kerridge Atul Kochhar Donald Macdonald OBE Sinead Mallozzi Anton Mosimann OBE Harry Murray MBE Chantelle Nicholson Jamie Oliver MBE Craig Prentice Alain Roux Michel Roux Jr Vivek Singh Cyrus Todiwala Pervin Todiwala Phil Vickery MBE The Viscount Lord Thurso Brian Turner CBE Robert Walton MBE

Hospitality Action 4

Trustees’ report Year ended 31 December 2024

The Trustees, who are also the directors, present the annual accounts for Hospitality Action for the year ended 31 December 2024 prepared in accordance with the Statement of Recommended Practice for Charities (SORP) 2019 and the Companies Act 2006. The reference and administrative information on pages 1-4 forms part of this report.

OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT

The Charity is a Benevolent Society whose objects are for the relief of persons who work or have worked in the hotel, catering and/or hospitality industries and the widows, widowers, partners, orphans and other dependants of such persons by the provision of monetary grants and/or advice, assistance and support and/or education and training.

Hospitality Action was founded in 1837 as unincorporated and for much of that time it was known as the Hotel and Catering Benevolent Association (HCBA). The charity was incorporated in 2003 as Hospitality Action having taken over the majority of the assets of the unincorporated charity.

The principal activities undertaken by the Charity in pursuance of its objects relate to the provision of:

The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities and setting the grant making policy for the forthcoming year.

Chief Executive

Mark Lewis had his seventh full year as Chief Executive.

Hospitality Action 5

Trustees’ report Year ended 31 December 2024

REVIEW OF THE YEAR: ACHIEVEMENTS AND PERFORMANCE

2024 was a strong year for the charity. Through organic fundraising and employee assistance programme (EAP) revenue growth, we were able to deliver the highest inyear income in our 189-year history. Total income for the year reached £3,880,813, which was +£842k versus the previous year. (Income included £316,358 donated from the unincorporated charity on its closure.) This donation contributed to our closing 2024 with an operating surplus of £293,660.

Combined fundraising and events income streams passed budget, at £2.39m versus £2.3m. And the EAP grew in income and scale, as we bedded in 2023’s migration of service provision to a new partner and added new products to our wellbeing offer. Income passed £1m for the first time, rising by £44k from £970k at year-end 2023 to £1,014k at the end of 2024. The number of lives served by the programme was steady at 194k.

This income-generating success enabled us to spend £1,005k on grants disbursement, which was +£5k versus budget and second only to the anomalous 2020 as our highest ever in-year grants expenditure total.

Fundraising

Through 2024, we continued to work to a blended model of proprietary fundraising initiatives and in-person events, and third-party and institutional fundraising.

Our market’s appetite for participating in challenge events remained strong, with our Summer Challenge and Walk for Wellbeing activities driving combined revenue of £169k. In April, we held our biannual Back to the Floor dinner event, which raised £266k – the largest return from a single initiative in the charity’s history. And in May, we held our first Bike to Care dinner, which raised an unbudgeted £105k.

Third-party fundraising continued to gather momentum, with many more hospitality operators choosing to support our work by adopting us as their chosen charity, launching ‘pound on the bill’ initiatives, featuring our Invisible Chips activation on their menus, or finding other miscellaneous ways to raise funds for us. Income from ‘pound on the bill’ initiatives, for example, grew by £42k year on year, with D&D London alone donating £40k.

Another notable income source was the Spirit of Hospitality rowing challenge, which saw two foodservice workers, Chris Mitchell and Robbie Laidlaw, row the Atlantic for us. As the voyage began in December 2023 and ended in January 2024, we received further income of £107k on top of the £89k reported in 2023.

Finally, we received a donation of £100k in December from US fast food restaurant chain, Chick-fil-A, to mark their entry into the UK market.

Hospitality Action 6

Trustees’ report Year ended 31 December 2024

ACHIEVEMENTS AND PERFORMANCE (continued) Services

We continued to support the welfare of people who work or have worked in UK hospitality through financial and emotional support, the provision of an employee assistance programme, signposting and advice, and pastoral support for retirees.

We pointed much of our £1,005k spend on grants disbursement towards providing financial relief for hospitality households that had accrued historic debt or arrears during the pandemic and ensuing cost of living squeeze, to prevent evictions and homelessness. The sustained increase in applications for financial support we’ve experienced since 2020 continued in 2024, with the months January, April and September all witnessing record numbers of applications.

In May 2024, we introduced a new advisory service with the appointment of a Welfare Benefits Advisor, who had by the end of the year unlocked £167k of unclaimed welfare entitlements for beneficiaries .

In 2024, we also formalised a partnership with Shelter Plus, enabling us to underwrite expert advice relating to accommodation issues for beneficiaries.

Our Employee Assistance Programme (EAP) was available to 194k hospitality workers by the end of 2024. The EAP is a commercial programme which trades under a subsidiary company. Hospitality companies pay a fixed annual per-employee fee, with any residual profits gifted to the charity. The programme had its official industry launch in January 2013. By December 2024, 457 companies were signed up to the programme, the largest of them being the Whitbread estate.

Through 2024 we continued to plan the development of the EAP services offering across the next 2-3 years as part of our wider business planning and strategic review. A full SWOT analysis was undertaken of our offering and that of our competitive set. Commercial discussions were initiated with Spectrum Life to introduce digital primary healthcare services and also with Qudos, a new partner, to develop a reward and recognition product, both for launch in H2 2025.

Meanwhile, we continued to provide moral and pastoral support to our Golden Friends community of some 1,600 industry retirees and their partners.

Hospitality Action 7

Trustees’ report Year ended 31 December 2024

ACHIEVEMENTS AND PERFORMANCE (continued)

The year’s achievements in numbers
2024 2023
Review of achievements in 2024
Beneficiary grants 1,005,185 914,433
Number of persons awarded grants 875 859
Number of employees covered by
the EAP		 193,529 194,472
2024 2023
Top up grants 25 beneficiaries
Grants £39,000		 34 beneficiaries
Grants £43,000
Crisis grants 17 beneficiaries
Grants £28,000		 32 beneficiaries
Grants £38,000
Essential Needs grants 185 beneficiaries
Grants £128,000		 134 beneficiaries
Grants £99,000
Other grants 1,101 beneficiaries
Grants £810,000		 1,370 beneficiaries
Grants £734,000

NB figures above reflect the fact that many beneficiaries received more than one grant.

Hospitality Action 8

Trustees’ report Year ended 31 December 2024

Future plans

In the face of the unprecedented and increasing demand for our support we saw in 2024, we undertook a Trustee-sponsored strategic review, leading to a five-year business plan, which was agreed by Trustees in January 2025. The plan is premised upon growing brand awareness and thereby fundraising and EAP membership, to support increased grant expenditure and services provision.

Specifically, it proposes that we:

To support EAP client acquisition, in 2025 we will evolve our product mix across three tiers to include self-service booking of counselling appointments, Digital GP service, ADHD and autism assessments, and a rewards and recognition platform.

Operations

The exponential rise in brand awareness we have achieved since 2020 has led to operational growing pains, and we continue to work hard to professionalise our systems and processes. In early 2025, we will roll out a new CRM platform across all facets of the charity. We will relaunch our website to focus on lead generation for our EAP and fundraising products, while also improving information provision and pathways for those seeking our benevolent support. And we will complete our migration to an entirely Cloud-based technology environment.

Governance

Hospitality Action is committed to demonstrating and encouraging equality, diversity, and inclusion in its workforce, in its day-to-day work and in its beneficiary support; and to eliminating unlawful discrimination of any kind. We have a duty to make a positive impact on our people, our beneficiaries and service users, our stakeholders, and the wider world.

We are fully committed to making a positive contribution to the world, one that goes in tandem with our charitable work. We will keep this commitment in sharp focus in 2025 and beyond.

We continue to work to ensure that our cohort of Trustees, patrons and ambassadors reflects and represents the ethnic diversity of the workforce we serve. Our ongoing aim is to continue our journey to embodying a truly diverse and inclusive charity.

Having overhauled and enhanced our risk register in 2023, we continue to focus hard on identifying and mitigating threats to our status as a going concern – in particular, cyber-attacks and fraud.

Hospitality Action 9

Trustees’ report Year ended 31 December 2024

FINANCIAL REVIEW

Income for the year was £3,880,813 including a one-off donation of £316,358 arising from the dissolution of the related unincorporated charity also known as Hospitality Action (2023: £3,038,586) and expenditure £3,587,153 (2023: £3,208,372) giving rise to an operating surplus of £293,660 (2023: deficit of £169,786). The year witnessed the highest income in the charity’s history.

Third-party and institutional fundraising remained strong, as did challenge initiatives and in-person events. Highlights included Walk for Wellbeing (£129k) and our biennial Back to the Floor dinner (£266k). We received £83k from the Worshipful Company of Innholders; £50k from the Procter England Bancroft/Hospitality Action Fund; and £100k from Chick-fil-A. The Spirit of Hospitality Atlantic Row challenge delivered £107k on top of the £89k received in 2023.

Our employee assistance programme reported modest income growth, ending the year at £1,014k (2023: £970k).

Expenditure of £3,587,123 was up £378,781 from £3,208,372 in 2023. Expenditure on charitable activity associated with grants, advice and support was £2,478,727, an increase of £258,623 from £2,220,104 in 2023.

After a very positive year of gains on investments of £535,383 (2023: gains of £224,256) the overall result for the year was a surplus of £829,043 (2023: surplus of £54,470) resulting in a corresponding increase in the balance of funds which stood at £8,350,171 as at 31 December 2024.

Reserves policy and financial position

The total funds held by the group at the end of the year were £8,350,171 (2023: £7,521,128).

Of the above total £94,603 (2023: £69,105) related to restricted funds not available for the general purposes of the Charity. As at 31 December 2024 £180,297 of funds were held within the subsidiary company (2023: £221,521). All of the remaining funds of the Charity totalling £8,075,271 (2023: £7,226,502) have been set aside in a designated fund by the trustees.

The Charity’s reserves safeguard its ability to operate and provide essential services to its beneficiaries in the case of unforeseeable reductions in fundraising income. To ensure that the charity can sustain its capacity to provide support to the sector it serves in perpetuity, the Trustees' policy is to seek to maintain the approximate current levels of reserves after allowing for fluctuations in the value of its investment portfolio, and to direct any income it generates to the Charity’s current account for working capital or charitable purposes.

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Trustees’ report Year ended 31 December 2024

FINANCIAL REVIEW (continued)

Reserves policy and financial position (continued)

The reserves are also available for investment in opportunities that may have an enduring benefit to the Charity and its beneficiaries. The five-year strategy plan referenced above, for example, may yield require investment from the reserves.

From 2024, the Charity has defined a base rate of annual grants expenditure of £1m; and aims to increase its level of charitable activity in each future financial year.

From time to time the Charity has needed to draw on the capital of the investment portfolio to meet working capital or charitable obligations where fundraising income has not been at expected levels. Such drawdowns require the approval of the Finance and Investment Committee. As a result, the Charity does not currently maintain any free reserves, as it is possible to meet any requirement for free reserves from the designated fund if required.

The Charity is aiming to maintain a position where any such drawdown is not required and free reserves can be maintained separately from the designated fund. We have not drawn down cash from our investment portfolio since early 2020, and our intention remains to maintain sufficient cash reserves to avoid future drawdowns. Since the investment portfolio’s year-end valuation of £6.450m (2023: £5,935m), we have seen its value fluctuate through the early part of 2025 between a high of £6.677m in February and a low of £5.894m in April. As at 2[nd] June the portfolio stood at £6.413m.

The investment portfolio is monitored daily, and reserve balances are reported to the Finance and Investment Committee each quarter.

The Finance and Investment Committee is required to review this reserves policy annually.

Going Concern

Hospitality Action serves an industry that continues to suffer the fallout from the socioeconomic factors that have defined the past five years. Hospitality operators continue to face soaring rent, energy, and produce prices, diminished out-of-home spend, and staff shortages. We saw numerous hospitality business closures in 2024, this trend has continued into the first months of 2025, when the rise in National Insurance has placed a further financial burden on operators.

Despite this backdrop, Hospitality Action last year achieved record income and spent more on grant-giving than in any year in its long history other than anomalous 2020. Moreover, our EAP continues to grow in income and reach, acting as a Trojan Horse by introducing our brand and wider work to clients, and triggering awareness and fundraising.

Hospitality Action 11

Trustees’ report Year ended 31 December 2024

Going Concern (continued)

While awareness of our work around the industry we serve has plateau-ed since the growth spurt that we saw in the pandemic and subsequent cost of living squeeze, our planned investment in head count and marketing in 2025 is intended to spark further growth.

Trustees are satisfied that the charity is well-positioned to continue as a going concern for the next twelve months and beyond. Reasons for this confident outlook include:

Investment policy

Under the Constitution the Trustees have general powers to invest in any trust funds or in the purchase of land or buildings. The agreed investment objectives were to achieve an annual income of 3.5% with the preservation of capital in real terms over the long term. The investment objectives are supported by an agreed asset allocation that is socially, environmentally, and ethically sound, and which is approved by the Finance and Investment Committee and Trustees. The Investment Managers meet periodically with the Charity's Finance and Investment Committee to review investment performance against agreed indices.

Grant Policy

The charity provides financial assistance, support and advice to serving, former and retired workers in the hospitality industry. Qualification for assistance financial is as follows:

Applicants or the supporting agent from a referring organisation (with the consent of the applicant) are required to complete a Hospitality Action application form and provide appropriate supporting documentation to evidence their hospitality employment and household financial position. For any former hospitality employees that do not have seven years employment, we endeavour to offer guidance and signposting.

Hospitality Action 12

Trustees’ report Year ended 31 December 2024

GOVERNANCE, STRUCTURE AND MANAGEMENT

Legal status and governing document

Hospitality Action is a charitable company limited by guarantee, incorporated in England and registered with Companies House. It is also registered with the Charity Commission in England and Wales.

It is governed by its memorandum and articles of association which are publicly available via www.companieshouse.co.uk

Structure

Hospitality Action has a wholly-owned subsidiary, Hospitality Action (Trading) Limited, (registered company 03332706 – England and Wales), which administers the Employee Assistance Programme. The results and net assets of the subsidiary are consolidated into these accounts.

Appointment and training of trustees

Trustees are elected at the annual general meeting in June and serve for two years when they may offer themselves for re-election for a further term of office. They are drawn from senior management across the industry, retired members of the industry and those with specialist skills pertinent to the aims and objectives of the Charity. All new Trustees go through a formal induction process with the Chief Executive and are issued with an induction pack that includes the charity’s memorandum and articles of association, a Charity Commission summary of responsibilities of charity trustees, a copy of the annual accounts and a formalised outline of the role of a trustee. Trustees meet quarterly.

Chief executive, staff and trustees

Chief Executive, Mark Lewis, is responsible for day-to-day operations of the Charity. Staff remuneration including that of Key Management is set to be competitive for the roles in the charity sector and based in London.

Trustees are responsible for ensuring we keep proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, the relevant Charity (Accounts and Reports) Regulations and the provisions of the charity’s constitution. 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.

Hospitality Action 13

Trustees’ report Year ended 31 December 2024

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Risk management, and principal risks and uncertainties

The Board of Trustees and Finance and Investment Committee periodically review and identify the major risks to the charity and have implemented systems and controls to mitigate these risks wherever practicable. The charity’s risk register was overhauled and enhanced in 2023 to enable us to better monitor risks on an ongoing gross and net basis and therefore track the impact of the steps being taken to mitigate them. The register keeps issues around financial fraud in sharp focus. And we continue to work with other charities to share best practice in this area.

We continue to see unprecedented demand for financial support. Our policy of restricting public access to the grants application portal periodically to manage the volume of cases received ensures that we are not overwhelmed by demand, and that we can limit spend on beneficiary services to what our cash reserves allow. It also allows us to manage applicants’ expectations of when they might receive support. (During periods of restricted access, we direct anyone seeking support to contact our grants team, to discuss their circumstances in more detail. The team identifies their primary need and level of urgency and, if they meet our top priority criteria, invites them to apply immediately. For any enquirer whose circumstances do not meet our top priority criteria, we invite them to contact us again in the future and offer signposting to other organisations that may be able to assist them with advice or support in the interim.)

Equal Opportunities Statement For Employees

Hospitality Action complies fully with all statutory requirements and has robust policies regarding what it expects of its staff and trustees. The charity has given consideration to the Charity Governance Code, in particular the latest updates to the Code surrounding equality, diversity and inclusion. This is of particular relevance in recruiting new trustees and new members of staff and ensuring all personnel are treated equally and fairly.

Hospitality Action is strongly committed to equal opportunities for all. Every possible step will be taken to ensure that individuals are treated equally and fairly and that decisions on recruitment, selection and training of employees are based on solely objective and role related criteria regardless of their age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation.

Our policy is to respect both the spirit and the letter of the laws regarding equality of opportunity and non-discrimination in Hospitality Action’s activities and to value the diversity of individuals throughout the community. We consider this to be an integral part of our ethos when recruiting employees to Hospitality Action.

Hospitality Action 14

Trustees’ report Year ended 31 December 2024

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Equal Opportunities Statement For Employees (continued)

This commitment extends to all areas, both within the working environment, as well as in relation to social and recreational programmes.

No employee or potential employee will be disadvantaged by any conditions of employment or requirements that cannot be justified as necessary on operational grounds.

Decisions about appointments, training, developments and promotion will be made on the basis of merit or ability.

All employees and volunteers are expected to support and co-operate in these efforts to ensure equal opportunity for all.

Any complaints of discrimination will be dealt with under Hospitality Action’s Complaints Procedure.

Any employee who conducts himself or herself in a discriminatory manner (whether on the grounds of age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation) towards another employee, beneficiary or member of the public will be subject to disciplinary action for gross misconduct.

EDI training by an external specialist in early 2025 will be repeated on a regular basis.

Fundraising Statement

We continue to receive donations, event bookings and Regular Giving payments via our website. We host an annual Summer Challenge and another in person 20k walk at hosted cities across the UK using a new platform, Enthuse. We also use Enthuse to receive funds raised by third parties alongside JustGiving and we use GalaBid to host online auctions and raffles. For our guest-pays activation such as ‘£ on the bill’ and Invisible Chips, all participating operators are instructed in how to pay in funds and manage any VAT implications. No moneys are raised via public, on-street collections. When collecting monies, we at all times adhere to GDPR best practice guidelines. We renew our PCI DSS Compliance annually.

Hospitality Action 15

Trustees’ report Year ended 31 December 2024

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Fundraising Statement (continued)

We adhere to the conditions that credit card details should not be stored or sent electronically and are to be destroyed as soon as a payment is processed. We do not store credit card details in any form. And as soon as the fundraising team has processed a credit card payment, they destroy the card details. Our compliance requirements are relatively light since any receipts via our website are through Stripe and GoCardless and we are not an e-commerce provider. The Fundraising Regulator has published a new Code of Fundraising Practice, which will come into effect from the 1st November. Work is currently under way to ensure HA’s fundraising policies and procedures are fully compliant.

We are members of the Association of Charitable Organisations (ACO) and the Fundraising Regulator and follow and track their fundraising due diligence recommendations and code. Hospitality Action has not received any complaints about its fundraising activities.

Trustees’ Responsibilities

The Trustees, who are also the directors for the purposes of Company Law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial 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 of the charity for that period. In preparing these financial statements, the trustees are required to:

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Trustees’ report Year ended 31 December 2024

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Trustees’ Responsibilities (continued)

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors also confirm that:-

Approved by order of the board of Trustees and signed on its behalf by

Chairman – Jonathan Raggett

Approved by the board of trustees on

3[rd] June 2025

Hospitality Action 17

Independent auditor’s report Year ended 31 December 2024

Independent auditor’s report to the members of Hospitality Action

Opinion

We have audited the financial statements of Hospitality Action (the ‘charitable parent company’) and its subsidiary (the ‘group’) for the year ended 31 December 2024, which comprise the consolidated statement of financial activities, the charityonly statement of financial activities, the consolidated and charity-only balance sheets, the consolidated statement of cash flows, the principal accounting policies and the notes to the financial statements. 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).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable parent 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.

Hospitality Action 18

Independent auditor’s report Year ended 31 December 2024

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustee’s Annual Report and financial statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the charitable parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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Independent auditor’s report Year ended 31 December 2024

Matters on which we are required to report by exception (continued)

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 and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

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:

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Independent auditor’s report Year ended 31 December 2024

Auditor’s responsibilities for the audit of the financial statements (continued)

We did not identify any irregularities, including fraud.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Hospitality Action 21

Independent auditor’s report Year ended 31 December 2024

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Hugh Swainson (Senior Statutory Auditor) For and on behalf of Buzzacott Audit LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

04 July 2025

Hospitality Action 22

Consolidated statement of financial activities (including an income and expenditure account) Year ended 31 December 2024

Notes
Unrestricted
funds
£
Income and endowments from:
Donations and legacies
Donations
1
1,198,698
Donated services and facilities
1
79,000
Members donations
5,863
Grants receivable
2
120,472
Other trading activities
Fundraising events
1,187,806
Charitable activities
Employee assistance
programme
1,013,951
Investments
3
153,523
Total
3,759,313
Expenditure on:
Raising funds
Cost of raising voluntary
income
822,699
Fundraising events and
activities
264,236
Investment management fees
21,491
Sub-total
1,108,426
Charitable activities
Welfare
4, 6
1,549,071
Employee assistance
programme
4
833,654
Sub-total
2,382,725
Total
4
3,491,151
Net income (expenditure)
before net gains on
investments
268,162
Net gains on investments
11
535,383
Net income (expenditure)
803,545
Transfer between funds
14
—
Net movement in funds
803,545
Reconciliation of funds:
Fund balances brought forward
7,452,023
Fund balances carried forward
8,255,568		 Notes
Unrestricted
funds
£
Income and endowments from:
Donations and legacies
Donations
1
1,198,698
Donated services and facilities
1
79,000
Members donations
5,863
Grants receivable
2
120,472
Other trading activities
Fundraising events
1,187,806
Charitable activities
Employee assistance
programme
1,013,951
Investments
3
153,523
Total
3,759,313
Expenditure on:
Raising funds
Cost of raising voluntary
income
822,699
Fundraising events and
activities
264,236
Investment management fees
21,491
Sub-total
1,108,426
Charitable activities
Welfare
4, 6
1,549,071
Employee assistance
programme
4
833,654
Sub-total
2,382,725
Total
4
3,491,151
Net income (expenditure)
before net gains on
investments
268,162
Net gains on investments
11
535,383
Net income (expenditure)
803,545
Transfer between funds
14
—
Net movement in funds
803,545
Reconciliation of funds:
Fund balances brought forward
7,452,023
Fund balances carried forward
8,255,568		 Restricted
funds
£		 Year
ended
31
December
2024
£
Unrestricted
funds
£
1,198,698
941,135
79,000
85,350
5,863
5,787
241,972
27,500
1,187,806
758,958
1,013,951
969,667
153,523
137,689
3,880,813
2,926,086
822,699
785,525
264,236
182,273
21,491
20,470
1,108,426
988,268
1,645,073
1,385,073
833,654
744,146
2,478,727
2,129,219
3,587,153
3,117,487
293,660
(191,401)
535,383
224,256
829,043
32,855
—
—
829,043
32,855
7,521,128
7,419,168
8,350,171
7,452,023		 Year
ended
31
December
2024
£
Unrestricted
funds
£
1,198,698
941,135
79,000
85,350
5,863
5,787
241,972
27,500
1,187,806
758,958
1,013,951
969,667
153,523
137,689
3,880,813
2,926,086
822,699
785,525
264,236
182,273
21,491
20,470
1,108,426
988,268
1,645,073
1,385,073
833,654
744,146
2,478,727
2,129,219
3,587,153
3,117,487
293,660
(191,401)
535,383
224,256
829,043
32,855
—
—
829,043
32,855
7,521,128
7,419,168
8,350,171
7,452,023		 Restricted
funds
£		 Year
ended
31
December
2023
£
Income and endowments from:
Donations and legacies
Donations
1
Donated services and facilities
1
Members donations
Grants receivable
2
Other trading activities
Fundraising events
Charitable activities
Employee assistance
programme
Investments
3
Total
Expenditure on:
Raising funds
Cost of raising voluntary
income
Fundraising events and
activities
Investment management fees
Sub-total
Charitable activities
Welfare
4, 6
Employee assistance
programme
4
Sub-total
Total
4
Net income (expenditure)
before net gains on
investments
Net gains on investments
11
Net income (expenditure)
Transfer between funds
14
Net movement in funds
Reconciliation of funds:
Fund balances brought forward
Fund balances carried forward		 1,198,698
79,000
5,863
120,472
1,187,806
1,013,951
153,523		 —
—
—
121,500
—
—
—		 1,198,698
79,000
5,863
241,972
1,187,806
1,013,951
153,523		 941,135
85,350
5,787
27,500
758,958
969,667
137,689		 —
—
—
112,500
—
—
—		 941,135
85,350
5,787
140,000
758,958
969,667
137,689
3,759,313 121,500 3,880,813 2,926,086 112,500 3,038,586
822,699
264,236
21,491		 —
—
—		 822,699
264,236
21,491		 785,525
182,273
20,470		 —
—
—		 785,525
182,273
20,470
1,108,426
1,549,071
833,654		 96,002
—
—		 1,108,426
1,645,073
833,654		 988,268
1,385,073
744,146		 —
90,885
—		 988,268
1,475,958
744,146
2,382,725 96,002 2,478,727 2,129,219 90,885 2,220,104
3,491,151 96,002 3,587,153 3,117,487 90,885 3,208,372
268,162
535,383		 25,498
—		 293,660
535,383		 (191,401)
224,256		 21,615
—		 (169,786)
224,256
803,545
—		 25,498
—		 829,043
—		 32,855
—		 21,615
—		 54,470
—
803,545
7,452,023		 25,498
69,105		 829,043
7,521,128		 32,855
7,419,168		 21,615
47,490		 54,470
7,466,658
8,255,568 94,603 8,350,171 7,452,023 69,105 7,521,128

The notes on pages 31 to 41 form part of these financial statements.

Hospitality Action 23

Statement of financial activities (charity only) Year ended 31 December 2024

Unrestricted
funds
£
Income and endowments from:
Donations and legacies
Donations
1,198,698
Gift Aid from subsidiary
company
225,521
Donated services and facilities
79,000
Members donations
5,863
Grants receivable
120,472
Other trading activities
Fundraising events
1,187,806
Investments
153,523
Total
2,970,883
Expenditure on:
Raising funds
Cost of raising voluntary
income
822,699
Fundraising events and
activities
264,236
Investment management fees
21,491
Sub-total
1,108,426
Charitable activities
Welfare
1,549,071
Sub-total
1,549,071
Total
2,657,497
Net income (expenditure)
before net gains on
investments
313,386
Net gains on investments
535,383
Net income
848,769
Transfer between funds
—
Net movement in funds
848,769
Reconciliation of funds:
Fund balances brought forward
7,226,502
Fund balances carried forward
8,075,271		 Unrestricted
funds
£
Income and endowments from:
Donations and legacies
Donations
1,198,698
Gift Aid from subsidiary
company
225,521
Donated services and facilities
79,000
Members donations
5,863
Grants receivable
120,472
Other trading activities
Fundraising events
1,187,806
Investments
153,523
Total
2,970,883
Expenditure on:
Raising funds
Cost of raising voluntary
income
822,699
Fundraising events and
activities
264,236
Investment management fees
21,491
Sub-total
1,108,426
Charitable activities
Welfare
1,549,071
Sub-total
1,549,071
Total
2,657,497
Net income (expenditure)
before net gains on
investments
313,386
Net gains on investments
535,383
Net income
848,769
Transfer between funds
—
Net movement in funds
848,769
Reconciliation of funds:
Fund balances brought forward
7,226,502
Fund balances carried forward
8,075,271		 Restricted
funds
£
Year
ended
31
December
2024
£
Unrestricted
funds
£
—
1,198,698
941,135
—
225,521
251,842
—
79,000
85,350
—
5,863
5,787
121,500
241,972
27,500
—
1,187,806
758,958
—
153,523
137,689
121,500
3,092,383
2,208,261
—
822,699
785,525
—
264,236
182,273
—
21,491
20,470
—
1,108,426
988,268
96,002
1,645,073
1,385,073
96,002
1,645,073
1,385,073
96,002
2,753,499
2,373,341
25,498
338,884
(165,080)
—
535,383
224,256
25,498
874,267
59,176
—
—
—
25,498
874,267
59,176
69,105
7,295,607
7,167,326
94,603
8,169,874
7,226,502		 Restricted
funds
£
Year
ended
31
December
2024
£
Unrestricted
funds
£
—
1,198,698
941,135
—
225,521
251,842
—
79,000
85,350
—
5,863
5,787
121,500
241,972
27,500
—
1,187,806
758,958
—
153,523
137,689
121,500
3,092,383
2,208,261
—
822,699
785,525
—
264,236
182,273
—
21,491
20,470
—
1,108,426
988,268
96,002
1,645,073
1,385,073
96,002
1,645,073
1,385,073
96,002
2,753,499
2,373,341
25,498
338,884
(165,080)
—
535,383
224,256
25,498
874,267
59,176
—
—
—
25,498
874,267
59,176
69,105
7,295,607
7,167,326
94,603
8,169,874
7,226,502		 Restricted
funds
£
Year
ended
31
December
2024
£
Unrestricted
funds
£
—
1,198,698
941,135
—
225,521
251,842
—
79,000
85,350
—
5,863
5,787
121,500
241,972
27,500
—
1,187,806
758,958
—
153,523
137,689
121,500
3,092,383
2,208,261
—
822,699
785,525
—
264,236
182,273
—
21,491
20,470
—
1,108,426
988,268
96,002
1,645,073
1,385,073
96,002
1,645,073
1,385,073
96,002
2,753,499
2,373,341
25,498
338,884
(165,080)
—
535,383
224,256
25,498
874,267
59,176
—
—
—
25,498
874,267
59,176
69,105
7,295,607
7,167,326
94,603
8,169,874
7,226,502		 Restricted
funds
£		 Year
ended
31
December
2023
£
Income and endowments from:
Donations and legacies
Donations
Gift Aid from subsidiary
company
Donated services and facilities
Members donations
Grants receivable
Other trading activities
Fundraising events
Investments
Total
Expenditure on:
Raising funds
Cost of raising voluntary
income
Fundraising events and
activities
Investment management fees
Sub-total
Charitable activities
Welfare
Sub-total
Total
Net income (expenditure)
before net gains on
investments
Net gains on investments
Net income
Transfer between funds
Net movement in funds
Reconciliation of funds:
Fund balances brought forward
Fund balances carried forward		 1,198,698
225,521
79,000
5,863
120,472
1,187,806
153,523		 —
—
—
—
121,500
—
—		 1,198,698
225,521
79,000
5,863
241,972
1,187,806
153,523		 941,135
251,842
85,350
5,787
27,500
758,958
137,689		 —
—
—
—
112,500
—
—		 941,135
251,842
85,350
5,787
140,000
758,958
137,689
2,970,883 121,500 3,092,383 2,208,261 112,500 2,320,761
822,699
264,236
21,491		 —
—
—		 822,699
264,236
21,491		 785,525
182,273
20,470		 —
—
—		 785,525
182,273
20,470
1,108,426
1,549,071		 —
96,002		 1,108,426
1,645,073		 988,268
1,385,073		 —
90,885		 988,268
1,475,958
1,549,071 96,002 1,645,073 1,385,073 90,885 1,475,958
2,657,497 96,002 2,753,499 2,373,341 90,885 2,464,226
313,386
535,383		 25,498
—		 338,884
535,383		 (165,080)
224,256		 21,615
—		 (143,465)
224,256
848,769 25,498 874,267 59,176 21,615 80,791
— — — — — —
848,769 25,498 874,267 59,176 21,615 80,791
7,226,502 69,105 7,295,607 7,167,326 47,490 7,214,816
8,075,271 94,603 8,169,874 7,226,502 69,105 7,295,607

Hospitality Action 24

Balance sheet Year ended 31 December 2024

2024 2024 2023 2023
Charitable Charitable
Notes Group Company Group Company
£ £ £ £
Fixed assets
Tangible assets 9 921,997 921,997 899,123 899,123
Intangible assets 10 14,157 14,157 14,758 14,758
Investments 11 6,449,750 6,449,750 5,935,394 5,935,394
7,385,904 7,385,904 6,849,275 6,849,275
Current assets
Debtors 12 891,282 855,046 666,272 423,406
Cash at bank and in hand 647,437 109,064 816,454 532,209
1,538,719 964,110 1,482,726 955,615
Liabilities
Creditors: amounts falling
due 13
within one year (574,452) (180,140) (810,873) (509,283)
Net current assets 964,267 783,970 671,853 446,332
Net assets 8,350,171 8,169,874 7,521,128 7,295,607
Funds:
Restricted funds 15 94,603 94,603 69,105 69,105
Unrestricted funds:
General funds — — — —
Subsidiary 180,297 — 225,521 —
Designated funds 8,075,271 8,075,271 7,226,502 7,226,502
8,350,171 8,169,874 7,521,128 7,295,607

The notes on pages 31 to 41 form part of these financial statements.

The financial statements were approved and authorised for issue by the board of the Trustees and signed on their behalf by:

Jonathan Raggett Chairman

Jon Dee Mark Lewis Treasurer Chief Executive

Approved on: 3[rd] June 2025

Hospitality Action: A company limited by guarantee, Company Registration Number: 04914871 (England and Wales)

Hospitality Action 25

Consolidated statement of cash flows Year ended 31 December 2024

Notes
2024
£

(296,286)
153,523
(47,281)
1,538,422
(1,517,395)
127,269
(169,017)
816,454

647,437		 2023
£

(366,733)
137,689

(19,745)
2,037,471
(2,009,252)
146,163

(220,570)
1,037,024
816,454
Net cash flows from operating activities:
Net cash used in operating activities
A
Cash flows from investing activities:
Investment income
Payment to acquire tangible and intangible fixed assets
Proceeds from sales of investments
Payments to acquire investments
Net cash provided by investing activities
Change in cash for the year
Cash at bank and in hand at the start of the year
Cash at bank and in hand at the end of theyear
B

A Reconciliation of net income to net cash used in operating activities

2024
£		 2023
£
Net income
Depreciation and amortisation
Gains on investments
Investment income
Increase in debtors
(Decrease) increase in creditors
Net cash used in operating activities		 829,043
25,008
(535,383)
(153,523)
(225,010)
(236,421)		 54,470
34,618
(224,256)
(137,689)
(232,625)
138,749
(296,286) (366,733)
Analysis of cash and cash equivalents 2023
£
816,454		 Cash flow
£
(169,017)		 2024
£
Cash at bank and in hand 647,437

B Analysis of cash and cash equivalents

C Analysis of changes in net debt

Analysis of changes in net debt
At
1 January
£
816,454
231,584
1,048,038		 Cash flows
£
(169,017)
(184,156)
(353,173)		 At 31
December
£
Cash at bank and in hand
Cash held by the investment manager
Total net debt		 647,437
47,428
694,865

Hospitality Action 26

Accounting policies Year ended 31 December 2024

Basis of accounting

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP (FRS 102)), and with the Financial Reporting Standard applicable in the UK and Republic of lreland (FRS 102).

The financial statements are presented in sterling and rounded to the nearest pound.

The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value. Investments are restated at fair value at the balance sheet date.

All transactions are derived from continuing activities. All recognised gains and losses are included in the Statement of Financial Activities. These accounts consolidate the results, assets and liabilities of Hospitality Action's subsidiary company on a line by line basis.

Critical accounting estimates and areas of judgement

There are no areas of material estimation uncertainty affecting the accounts and no significant areas of judgment affecting the figures, aside from the following:

Going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect of a period of one year from the date of approval of these financial statements.

The trustees have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. With regard to the next accounting period, the year ending 31 December 2024, the most significant areas that affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment markets (see the investment policy and the risk management sections of the trustees report for more information).

Hospitality Action 27

Accounting policies Year ended 31 December 2024

Fund accounting

Unrestricted funds comprise accumulated surpluses and deficits on general funds. They are available for use at the discretion of the Trustees in furtherance of the general charitable objectives. Restricted funds comprise monies raised for, and their use restricted to, a specific purpose, or donations subject to donor imposed conditions. Designated funds represent those funds which the trustees have earmarked for specific purposes and include the carrying value of the charity's fixed assets.

Income

Income is recognised on a receivable basis and principally comprises grants, events income, income from the delivery of services and donations receivable. Any income received which is not attributed to the year of receipt, is included within deferred income in creditors. Donated services and facilities (gifts in kind) are included in the financial statements at the best estimate of the value to the charity. Legacy income is recognised when the criteria of entitlement, probability and measurability have been met.

Expenditure recognition

Expenditure including irrecoverable VAT is charged to the Statement of Financial Activities on an accruals basis. Expenditure is classified as either costs of raising funds (which includes fundraising and events costs as well as investment manager’s fees) or charitable activities costs being the costs the charity incurs in furthering its charitable objectives. Direct costs are allocated to the activity headings to which they relate. Support costs relate to indirect costs including the costs of governance. These are directly allocated where possible and otherwise apportioned on a consistent basis.

Grants

Grants expenditure is recognised when there is a constructive obligation to pay monies to a beneficiary, that is, when the charity has notified the beneficiary of the payment of the grant. It includes the payment of monetary grants to beneficiaries, expenditure made in providing beneficiaries with goods and services and the costs of distributing and administering such direct provision. The cost of such provision, and that in respect of monetary grants in particular, is recognised as it becomes payable according to the Charity's rules.

Tangible fixed assets

Tangible assets are shown at cost less provision for depreciation. Provision is made for depreciation on all tangible assets at rates calculated to write off the cost, less estimated residual value over their useful lives which are estimated to be:

Leasehold property over the length of the lease Furnishing 20% straight line Office refurbishment 10% straight line Computer equipment 33% straight line

Hospitality Action 28

Accounting policies Year ended 31 December 2024

Intangible fixed assets

Intangible assets are shown at cost less provision for amortisation. Provision is made for amortisation on all intangible assets at rates calculated to write off the cost, less estimated residual value over their useful lives which is estimated to be four years.

Investments

Investments are restated at fair value as at the balance sheet date. Investment gains and losses are disclosed in the Statement of Financial Activities.

Debtors

Debtors are recognised at their settlement amount, less any provision for nonrecoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Pension costs

The Charity operates a stakeholder pension scheme. Contributions are charged to expenditure as they fall due.

Financial instruments

The charity only holds basic financial instruments as defined by FRS102. The financial assets and liabilities of the charity are as follows:

Financial assets – donations due and trade debtors are basic financial instruments and are debt instruments measured at amortised cost. Investments are basic financial instruments held at fair value. Accrued income and prepayments are not financial instruments. Cash at bank and short term deposits are classified as basic financial instruments and measured at face value.

Hospitality Action 29

Accounting policies Year ended 31 December 2024

Financial instruments (continued)

Financial liabilities – trade creditors, grants payable, and accruals are financial instruments and are measured at amortised cost. Social security and other taxes are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability as the cash settlement has already taken place and there is no obligation to deliver services rather than cash or another financial instrument.

Hospitality Action 30

Notes to the financial statements Year ended 31 December 2024

2024
£		 2023
£
Unrestricted
Bidfood
Chick-Fil-A
D&D Group
Gleneagles Hotel
Greenclose Hotels
Grind Roasters
Gusto
Home Grown Hotels
In-Bev
Hospitality Action unincorporated charity
Le Gavroche
NCASS
Nestle
Red Carnation Hotels
Sir Richard Sutton Ltd
Sketch
Society of Golden Keys
Stevens Bolton LLP
The Dorchester Collection
Whitbread
Other donations
Total unrestricted donations
Donated services and facilities
The Caterer
Staff Canteen, Dewberry, H2O
Totalgifts in kind		 47,509
100,000
38,305
12,500
9,919
7,199
21,110
24,781
12,655
316,358
31,020
6,051
5,099
52,410
5,000
49,986
13,700
50,082
25,000
150,000
220,014		 26,044
—
31,292
12,500
252
—
—
—
70,000
—
5,500
—
4,300
—
5,000
54,403
11,855
—
—
175,000
544,989
1,198,698 941,135
29,500
49,500		 29,500
55,850
79,000 85,350

Hospitality Action 31

Notes to the financial statements Year ended 31 December 2024

2 Grants receivable

Grants receivable
2024
£		 2023
£
Unrestricted:
Worshipful Company of Innholders
Lenore England Fund
Others
Total unrestricted grants
Restricted fund:
Drug and Alcohol awareness programme/welfare
Savoy Educational Trust
Worshipful Company of Innholders
Excel Trust
Total restricted grants
Totalgrants		 12,500
50,000
57,972		 17,500
--
10,000
120,472 27,500
50,000
70,000
1,500		 13,000
98,000
1,500
121,500 112,500
241,972 140,000

3 Investment income

Investment income
2024
£		 2023
£
From listed investments
Interest on cash deposits		 147,558
5,965		 135,359
2,330
153,523 137,689

4 Expenditure

Expenditure
Analysis of 2024 expenditure Notes
Grants		 Other
direct
costs
£		 Support
costs
£		 Total
2024
£
Raising funds:
Cost of raising voluntary
income
Fundraising events and
activities
Investment management
Charitable activities:
Welfare
6
Employee assistance
programme
Total		 —
—
—
1,005,185
—		 516,188
264,236
21,491
378,786
759,883		 306,511
—
—
261,102
73,771		 822,699
264,236
21,491
1,645,073
833,654
1,005,185 1,940,584 641,384 3,587,153

Hospitality Action 32

Notes to the financial statements Year ended 31 December 2024

4 Expenditure (continued)

Expenditure(continued)
Analysis of 2024 support costs on raising
funds
£
Expenditure
E
xpenditure
on
charitable
activities
£		 Total
2024
£
Staff costs
Office rent and shared office costs		 241,172
65,339		 266,160
68,713		 507,332
134,052
306,511 334,873 641,384
Analysis of 2023 expenditure Notes
Grants
£		 Other
direct
costs
£		 Support
costs
£
266,120
—
—
255,678
67,805
589,603		 Total
2023
£
Raising funds:
Cost of raising voluntary
income
Fundraising events and
activities
Investment management
Charitable activities:
Welfare
6
Employee assistance
programme
Total		 —
—
—

914,433
—		 519,405
182,273
20,470
305,847
676,341		 785,525
182,273
20,470
1,475,958
744,146
914,433 1,704,336 3,208,372
Analysis of 2023 support costs Ex
penditure
on
raising
funds
£
 Expenditure
on
charitable
activities
£		 Total
2023
£
Staff costs
Office rent and shared office costs		 207,975
58,145		 255,281
68,202		 463,256
126,347
266,120 323,483 589,603

The allocation of support costs is on a per capita basis, having regard to time spent by staff on either fundraising or charitable activities.

Hospitality Action 33

Notes to the financial statements Year ended 31 December 2024

5 Analysis of governance costs

Analysis of governance costs
2024
£		 2023
£
Audit fees
Legal and professional
Trustees’ expenses
Other		 18,422
28,779
1,608
2,057		 14,640
18,160
663
2,069
50,866 35,532

6 Welfare expenditure

Welfare expenditure
2024
£		 2023
£
Annuities
Counselling
Funeral costs
Christmas grants
Winter fuel grants
General living costs grants
Housing grants
Golden Friends’ scheme
Legal support
Grant management and other beneficiary support services
Total cost of grant making and other beneficiary support
services		 69,679
16,225
11,050
21,778
74,530
494,150
280,166
20,087
17,520		 84,737
10,911
20,909
23,634
72,800
429,627
255,960
15,855
-
1,005,185
639,888		 914,433
561,525
1,645,073 1,475,958

7 Employees and staff costs

2024
Number		 2023
Number
The average number of persons employed by the Charity
duringtheyear		 21 19
Staff costs were as follows: 2024
£		 2023
£
Wages and salaries
Social security costs
Pension costs		 974,409
107,222
100,892		 812,598
89,610
82,643
1,182,523 984,851

Hospitality Action 34

Notes to the financial statements Year ended 31 December 2024

7 Employees and staff costs (continued)

The number of employees who received remuneration in excess of £60,000 is analysed as follows:

2024
No.		 2024
No.
£60,001 - £70,000
£80,001 - £90,000
£120,001 - £130,000
£130,001 - £140,000		 2
1
—
1		 —
1
1
—

The charity considers that the Key Management Personnel for financial reporting purposes comprises the trustees and the Chief Executive. The total Key Management Remuneration, including employer’s national insurance and pension contributions, was £161,971 (2023: £155,027).

Trustees’ remuneration and reimbursed expenses

In 2024 £1,608 was spent in respect of trustees (2023 - £663) - a dinner, flowers and a portrait of a former Chair.

8 Net movement in funds

Net movement in funds
2024
£		 2023
£
This is stated after charging:
Depreciation
Amortisation
Auditor’s remuneration:
. Parent charitable company audit
. Subsidiary company audit
. Other(tax services)		 16,441
8,567
12,900
2,180
2,035		 13,417
21,201
12,100
2,040
1,850

Hospitality Action 35

Notes to the financial statements Year ended 31 December 2024

9 Tangible fixed assets – group and charitable company

Leasehold
property
£
Office
refurbish-
ments
£
Furniture
and fittings
£

116,065
41,782
—
7,615
—
—
116,065
49,397
82,045
33,913
5,040
2,357
—
—
87,085
36,270
28,980
13,127
34,020
7,869
Office
refurbish-
ments
£
Furniture
and fittings
£

116,065
41,782
—
7,615
—
—
116,065
49,397
82,045
33,913
5,040
2,357
—
—
87,085
36,270
28,980
13,127
34,020
7,869		 Office and
other
equipment
£		 Total
£
Cost
At 31 December 2023
Additions
Disposals
At 31 December 2024
1,129,893
Depreciation
At 31 December 2023
Charge for the year
On disposals
At 31 December 2024
Net book value
At 31 December 2024
At 31 December 2023		 863,339
—
—		 116,065
—
—		 41,782
7,615
—		 69,392
31,700
(2,736)		 1,090,578
39,315
(2,736)
863,339 116,065 49,397 98,356 1,127,157
14,960
880
—		 82,045
5,040
—		 33,913
2,357
—		 60,537
8,164
(2,736)		 191,455
16,441
(2,736)
15,840 87,085 36,270 65,965 205,160
847,499 28,980 13,127 32,391 921,997
848,379 34,020 7,869 8,855 899,123

The depreciation charge on the long leasehold property reflects the length of the leasehold which is 979 years.

10 Intangible fixed assets – group and charitable company

Intangible fixed assets – group and charitable company
Cost Total
£
At 31 December 2023
Additions
At 31 December 2024
Amortisation
At 31 December 2023
Charge for the year
At 31 December 2024
Net book value
At 31 December 2024
At 31 December 2023		 143,345
7,966
151,311
128,587
8,567
137,154
14,157
14,758

Hospitality Action 36

Notes to the financial statements Year ended 31 December 2024

11 Investments – group and charitable company

Investments – group and charitable company
2024
£		 2023
£
Market value
As at 1 January
Additions at cost
Disposals
Realised losses
Unrealised gains
As at 31 December
Analysed as follows:
United Kingdom investments
Non-United Kingdom investments
Cash and commodities held for investment
Historical cost		 5,935,394
1,517,395
(1,538,422)
(1,209)
536,592		 5,739,357
2,009,252
(2,037,471)

(6,736)
230,992
6,449,750 5,935,394
1,515,817
4,585,725
348,208		 1,532,153
4,171,657
231,584
6,449,750 5,935,394
5,366,152 5,297,397

The following holdings exceed 5% of portfolio value – Vanguard S&P 500 UCITS ETF (18%), HSBC FTSE-All World Index (11%), Schroder WM Global Sustainable Equity Fund (7%) and the SDPR S&P UCITS ETF (6%). The cash balances are not available for day to day transactions but are for the trading of investment assets.

12 Debtors

Debtors
Group
2024
£		 Charitable
company
2024
£		 Group
2023
£		 Charitable
company
2023
£
Fundraising debtors
Trade debtors
Amounts due from trading
subsidiary
Prepayments and accrued income		 21,810
263,454
—
606,018		 21,810
—
278,947
554,289		 5,660
204,648
—
455,964		 5,660
—
—
417,746
891,282 855,046 666,272 423,406

Hospitality Action 37

Notes to the financial statements Year ended 31 December 2024

13 Creditors: amounts falling due within one year

Group
2024
£		 Charitable
company
2024
£		 Group
2023
£		 Charitable
company
2023
£
Grants approved but unspent at
year end
Trade creditors
Taxation and social security
Accruals and deferred income
Amounts due to trading subsidiary
Amounts due to related charity
(note 21)		 34,091
72,144
28,272
439,945
—
—		 34,091
15,986
28,272
101,791
—
—		 36,905
26,889
23,646
407,075
—
316,358		 36,905
24,455
23,646
101,952
5,967
316,358
574,452 180,140 810,873 509,283
Deferred income comprises: 2024
£
Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of theyear		 43,190
(33,140)
29,000
39,050

Income is deferred until the charity has met any performance related conditions attached to the income.

14 Unrestricted funds

Unrestricted funds
Balance at
31
December
2023
£		 Income
£
Expenditure
£
Transfers
£
Gains on
investments
£
Balance at
31
December
2024
£
2,745,362 (2,632,489) (112,873)

— (25,008) 338,394
1,013,951
(833,654) (225,521)
—
—
535,3838,075,271
—180,297
3,759,313 (3,491,151)
—
535,3838,255,568
Charity
General
Designated
Subsidiary company
Total		 —
7,226,502
225,521		 2,745,362

—
1,013,951		 —
8,075,271
180,297
7,452,023 3,759,313 535,383 8,255,568

Transfers from the subsidiary company fund to the general and designated funds relate to the payment of the company’s profit to the parent charity via a gift-aided donation. Transfers from designated funds to general funds are made to cover the charity’s general day-to-day expenses.

Hospitality Action 38

Notes to the financial statements Year ended 31 December 2024

14 Unrestricted Funds (continued)

Comparative information

Balance at
31
December
2022
£



Income
£
Expenditure
£
Transfers
£
Gains on
investments
£
Balance at
31
December
2023
£
—
—
224,256 7,226,502
1,956,419 (2,338,723) 382,304

—
(34,618) (130,462)
969,667 (744,146) (251,842)
—
225,521
2,926,086 ( 3,117,487)
—
224,256 7,452,023



Income
£
Expenditure
£
Transfers
£
Gains on
investments
£
Balance at
31
December
2023
£
—
—
224,256 7,226,502
1,956,419 (2,338,723) 382,304

—
(34,618) (130,462)
969,667 (744,146) (251,842)
—
225,521
2,926,086 ( 3,117,487)
—
224,256 7,452,023



Income
£
Expenditure
£
Transfers
£
Gains on
investments
£
Balance at
31
December
2023
£
—
—
224,256 7,226,502
1,956,419 (2,338,723) 382,304

—
(34,618) (130,462)
969,667 (744,146) (251,842)
—
225,521
2,926,086 ( 3,117,487)
—
224,256 7,452,023



Income
£
Expenditure
£
Transfers
£
Gains on
investments
£
Balance at
31
December
2023
£
—
—
224,256 7,226,502
1,956,419 (2,338,723) 382,304

—
(34,618) (130,462)
969,667 (744,146) (251,842)
—
225,521
2,926,086 ( 3,117,487)
—
224,256 7,452,023
Charity
General
Designated
Subsidiary company
Total		 —
7,167,326
251,842		 1,956,419

—
969,667		 (2,338,723) 382,304

(34,618) (130,462)
(744,146) (251,842)		 —
224,256


—
—
7,226,502
225,521
7,419,168 2,926,086 ( 3,117,487)
—		 224,256 7,452,023

15 Restricted funds

Restricted funds
Balance at
31 December
2023
£
Income
£		 Expenditure
£		 General
fund
Transfers
£		 Balance at
31 December
2024
Total
£
Welfare 69,105
121,500		 (96,002) — 94,603
69,105
121,500		 (96,002) — 94,603
Comparative information
Balance at
31 December
2022
£
Welfare
47,490
47,490
Income
£		 Expenditure
£		 General
fund
Transfers
£		 Balance at
31 December
2023
Total
£
Welfare 47,490
112,500		 (90,885) — 69,105
47,490
112,500		 (90,885) — 69,105

Welfare covers three specific programmes: the Golden Friends scheme, Winter Fuel grants and phone line rentals.

16 Pensions obligations

Stakeholder pensions

The Charity operates a stakeholder pension scheme. The assets of the scheme are held separately from those of the Charity, being invested with an insurance company.

2024
£
100,892		 2023
£
82,643
Total employer cost

Hospitality Action 39

Notes to the financial statements Year ended 31 December 2024

17 Analysis of net assets between funds

General
funds
£
Designated
funds
£
—
936,154
—
6,449,750
—
869,664
—
8,255,568		 General
funds
£
Designated
funds
£
—
936,154
—
6,449,750
—
869,664
—
8,255,568		 Restricted
funds
£		 Total
2024
£		 Total
2023
£
913,881
5,935,394
671,853
7,521,128
Fund balances at 31
December 2024 are
represented by:
Tangible assets
Investments
Net current assets
Net assets		 —
—
—		 936,154
6,449,750
869,664		 —
—
94,603		 936,154
6,449,750
964,267
— 8,255,568 94,603 8,350,171

Comparative information

Fund balances at 31 December
2023 are represented by:
Tangible assets
Investments
Net current assets
Net assets		 General
funds
£
Designated
funds
£

—
913,881
—
5,935,394
—
602,748
—
7,452,023		 Restricted
funds
£
—
—
69,105
69,105		 Total
2023
£
913,881
5,935,394
671,853
7,521,128

18 Financial instruments

Financial instruments
Group
2024
£
6,449,750
932,701
155,510		 Charitable
company
2024
£
6,449,750
130,874
71,279		 Group
2023
£
Charitable
company
2023
£
5,935,394
5,935,394
1,026,762
537,869
(89,650)
(81,449)
Financial assets held at fair value
Financial assets held at amortised
cost
Financial liabilities held at
amortised cost		 5,935,394
1,026,762
(89,650)

19 Taxation

Hospitality Action is a registered charity and therefore is not liable to income tax or corporation tax on income or gains derived from its charitable activities, as they fall within the various exemptions available to registered charities. Whilst the Charity's trading subsidiary company is not exempt from corporation tax on its taxable profits it is not expected that any taxation will arise as it is the intention of the company's directors to donate any such profits to the parent Charity.

Hospitality Action 40

Notes to the financial statements Year ended 31 December 2024

20 Subsidiary undertaking

The subsidiary undertaking is Hospitality Action (Trading) Limited (registered company 03332706) which is incorporated in England and had net assets of £180,297 as at 31 December 2024 (2023: net assets of £225,531). In the year ended 31 December 2024 it had turnover of £1,013,951 (2023: £969,667) and expenditure of £833,654 (2023: £744,146). It will gift aid its taxable profit to the parent charity in 2025.

21 Related charity

The Charity was incorporated in 2003 and took over the majority of the assets of an unincorporated charity also known as Hospitality Action (Charity Number 208855). On 20 December 2023 the unincorporated charity sold a leasehold flat. This had been the sole asset of the unincorporated charity and had been vacated by the longstanding assured tenant in February 2022. The assets of the unincorporated charity of £316,358 were donated to the incorporated charity Hospitality Action during 2024. The unincorporated charity was closed during 2024, with its removal from the Central Register of Charities confirmed by the Charity Commission on 6[th] December 2024.

22 Related party

The Charity holds 20% of the shares of 62 Britton Street Ltd, a company, which holds the Charity's interest in the freehold of its premises. There are no outstanding balances between the Charity and the company.

23 Other related party transactions

Owing to the nature of the charity’s operations and the composition of the Board of Trustees being drawn from the hospitality sector, it is inevitable that transactions will take place with organisations in which a member of the Board of Trustees may have an interest. All transactions involving such organisations are conducted at arm’s length and on normal business terms.

Hospitality Action 41