OpenCharities

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

← Magic Breakfast

2024-08-31-accounts

2023-2024 ANNUAL REPORT Magic Breakfast Annual Report 2023-2024

2

Reference and administrative details

Bright ‘N ~ futures ahead

Charity name

Magic Breakfast

Charity registration no

1102510 (England and Wales) and SC048202 (Scotland) 04977015

Company registration no

Company registration no 04977015
Registered and
principal office		 Fora
42-46 Princelet Street
London
E1 5LP
Board of Trustees Trustees, who are also directors under company law, who served during the year and up to the date of
Chair and Vice Chair
Board members		 this report were as follows:
Aniela Shuckburgh, Chair
Andrienne d’Arenberg		 Alison Inglis-Jones, Vice Chair
Michael Honan
Emma West Phil Davies
Jonathan Boateng (appointed 20 June 2024) Richard Lackmann
Julie Harkness Varsha Venugopal
Julie-Anne Jamieson (appointed 18 January 2024) Zipporah Kissi (appointed 20 June 2024)
Senior leadership team Chief Executive Officer Director of Fundraising and Development
Lindsey MacDonald Emily Wilkie
Director of People and Culture Director of Policy and Engagement
Alan Mustafa Jacquie Bance de Vasquez
Head of Finance and Technology
Anthony Eckersley		 Director of Service Delivery
Sam Boulton (last employment date 31 August 2024)
Rhian Thompson (appointed 1 October 2024)
Professional advisors Bankers Independent auditors
The Royal Bank of Scotland Sayer Vincent LLP
London Drummonds Chartered Accountants and Statutory Auditor
49 Charing Cross
Admiralty Arch
London
SW1A 2DX
Insurance brokers
Surrey Insurance Limited
PO Box 1533		 110 Golden Lane
London
EC1Y 0TG
Legal advisors
Bates Wells
10 Queen Street Place
Woking London
GU22 2RY EC4R 1BE

The trustees present their report and the audited financial statements for the year ended 31 August 2024.

Reference and administrative information set out on page 2 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association, the requirements of a directors’ report as required under company law, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Magic Breakfast Magic Breakfast Annual Report 2024 Annual Report 2023-2024

3

Welcome to our Annual Report 2 2023/24 ee

Welcome to our
Annual Report
2023/24
ee
Introduction 4
The difference breakfast makes: A school’s story 5
Powering opportunities: Welcome from the Chair 6
Steadfast focus on impact: CEO’s report 7
Our year in numbers: A financial summary 10
Who’s not having breakfast? 11
Widespread hunger: The effect on communities 12
Understanding need: Our research 13
Breakfast changes lives: Sophie’s story 13
Reaching more hungry children 14
More seats around the table: Reaching more children 15
Sustainable growth: Working with more schools 17
Ending morning hunger for good: Shaping the future 18
Powered by people 20
Inspiring action: Raising awareness of the issue 21
Giving to Magic Breakfast 22
Strategic partnerships 23
Empowering staff: Ways of working at Magic Breakfast 24
Thank you to our amazing community 25
Financial review 26
Financial update 27
Principal risks and uncertainties 28
Reserves policy and going concern 28
Governance and management 29
Structure, governance and management 30
Trustee appointment, training and remuneration 30
Statement of responsibilities of trustees 31
Plans for the future 32
Looking ahead: plans for 2024/25 33
Financial statements 34
Independent auditor’s report 35
Statement of financial activities 37
Balance sheet 37
Statement of cash flows 38
Notes to the financial statements 38

Magic Breakfast Annual Report 2024

4

4

Magic Breakfast Annual Report 2024

INTRODUCTION

5

The difference breakfast makes: A school’s story

Shelagh Todd and Kenny Stewart Head Teacher and Deputy Head Teacher at Easter Carmuirs Primary School, Falkirk

B efore we offered school breakfasts, our children were often unable to concentrate in lessons. They were disengaged from learning and could be dysregulated at times. A pencil breaking could feel like the last straw... it felt like they were running on empty. We worked with staff and pupils to identify the root cause of these behaviours, and a lack of a nutritious breakfast was a common theme. There are high levels of unemployment and deprivation in our local area, and we believe that 78% of our children were not eating a substantive breakfast. It was time for us to act.

Every school’s needs are different, but for us it was important that breakfast was “ served in the classrooms for it to be the nurturing time we wanted it to be, for our young people to get settled into the day and for having a check in with their teachers. Initially, there were concerns about how our classrooms would manage. Many teachers felt that we would be losing a lot of time to breakfast, fearing the impact on managing an ever-tightening curriculum.

We think breakfast is important to every pupil at every kind of school. It fills tummies and fuels learning. But more than that, it teaches social skills and creates nurturing relationships between staff and pupils, allowing children to feel safe, secure and able to share anything.

Hearts and minds were won, however, when we piloted breakfast in one class. The

teacher was able to quickly see the impact it was having on her class’s ability to learn. Suddenly, there was a lot of positive chatter in the staffroom. Far from wasted time, breakfast was being touted as a transformative way of setting pupils up for the day. More teachers asked if they could give breakfast in their classroom and, within a year, every class was serving breakfast.

Now a whopping 93% our pupils have a magic breakfast (with the rest eating at home

before they leave) and our partnership with Magic Breakfast ensures that this is a wholly sustainable endeavour, removing our fears around changes in government funding or the rising costs of food.

Shelagh Todd and Kenny Stewart f Number of pupils eating breakfast: (Carmuirs Primary School, Falkirk) 93% With Magic Breakfast I AY 22% Without Magic Breakfast lf \ af S

We’ve now helped our feeder high school look at how they provide breakfast, sharing our insight into the transformational part it plays in powering the potential of our young people. The need to have a morning meal doesn’t suddenly change when a child goes to secondary; arguably, the need is even greater as social and academic demands increase.

Amount of classrooms serving Magic Breakfast: (Carmuirs Primary School, Falkirk)

100%

Magic Breakfast Annual Report 2024

6

Powering opportunities: Welcome from the Chair

I am delighted to welcome you to this year’s Annual Report. As you look through the pages that follow, you’ll see that this has been a year for growth and building on the strong foundations we put in place last year. We are now reaching more children and young people in more schools across the country. Thanks to our generous supporters we increased our target number of children and young people receiving a magic breakfast and responded to a volatile political environment.

Magic Breakfast’s mission is, and has always been, to alleviate child hunger as a barrier to education to improve life chances and opportunities for children and young people in the UK. Our core activity is twofold: providing nutritious breakfasts, in partnership with schools, to reach children and young people at risk of hunger, and making the case for change to eliminate child morning hunger for good.

WE NOW SUPPORT 277,000 CHILDREN AND YOUNG PEOPLE EACH DAY

On both fronts, we have taken strides forward. We now support 277,000[(1)] children and young people each day, and school breakfast provision forms part of a government bill that featured in the King’s speech.

Looking to the future we have asked ourselves a key question: who’s not getting breakfast...

We asked ourselves,

‘Who’s not getting breakfast in our partner schools?’

We undertook research in partnership with secondary schools and their pupils to understand the barriers preventing young people from engaging with breakfast provision. In line with our equity, diversity, and inclusion (EDI) action plan and with support from DataKind UK, we reviewed our uptake data in schools and how this compared with local demographic and community data.

Of councils we asked,

‘Who’s not getting breakfast in your area, and how is it affecting them?’

Providing evidence of the social, academic and economic outcomes of breakfast, we

built partnerships with four local authorities to consider how they might end child morning hunger in their communities.

As a new government took the helm, we asked:

‘Who’s not getting breakfast, and what could they achieve if they had it?’.

The current policy commitment misses secondary, SEND, PRU and nurseries in England, so we must ensure they are not forgotten, and champion the opportunities that breakfast powers for them. Our work to hold Scottish Government to account for their promise continues.

We continued to consider and develop our governance and were delighted to appoint and welcome three new trustees to our board this year who bring a wealth of experience and passion for our cause. We also appointed two new board advisors who attend all board meetings and bring the voice of recent lived experience to trustees’ decision making.

I would like to thank everyone who has contributed to this year’s story and success, in particular my fellow trustees, our board advisors, and the team at Magic Breakfast. Together with our supporters, stakeholders and friends, we are ensuring that children and young people for generations to come will not be too hungry to learn. Thank you!

With gratitude,

Aniela Shuckburgh Magic Breakfast Chair

The trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting period. The trustees report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the trustees ensure the charity’s aims, objectives and activities remained focused on its stated purposes.

The trustees 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 its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.

1 This figure is based on children on roll at all Magic Breakfast schools. Our approach is to ensure that breakfast is a universal provision open to all on roll, and schools report that behaviour in class improves where breakfast has been provided.

Magic Breakfast Annual Report 2024

7

Steadfast focus on impact: CEO’s report

T his has been a big year for Magic Breakfast. Powered by our supporters and our team, we have taken big leaps forward in our efforts to end child morning hunger, both for now and for good. As the landscape around us has changed at pace, we have stayed true to our strategy and values while we pivoted our team and plans to respond effectively.

Our strategic objectives:

==> picture [289 x 210] intentionally omitted <==

----- Start of picture text -----
2 3
|
Build a movement to push for a
solution to child morning hunger
morning
hunger
----- End of picture text -----

==> picture [197 x 203] intentionally omitted <==

----- Start of picture text -----
1
in i
Ensure a nutritious and filling
breakfast is provided to as many
pupils at risk of hunger as possible
----- End of picture text -----

==> picture [206 x 48] intentionally omitted <==

----- Start of picture text -----
Operate efficiently and responsibly
with greater internal and external
collaboration
----- End of picture text -----

==> picture [757 x 265] intentionally omitted <==

----- Start of picture text -----
2024 resource allocation:
With support, overheads and governance
Governance: £126,607
12%
Support and overheads: £1,128,231
Making the case for change: £1,156,631
Food aid: £5,310,446
Raising funds: £1,352,601
----- End of picture text -----

Reaching more children and young people ~~Pn~~ iy Me red hh yeas ge NUE eh Day det key OH tele MgO NTy

On top of this, we expanded our geographical footprint by working with additional schools and growing our partnerships with local authorities to deepen our presence in communities and further diversify our revenue.

We made difficult decisions in 2022/23 to cut back in various areas

as we laid stronger foundations for sustainable growth of our school breakfast operations.

A gamechanger for our work and efficiency was the launch of our Magic Menu in September 2023. This has had a real impact on the choice and variety we can offer and our ability to respond to supply chain challenges. We had increased uptake of breakfast by children and young people in our existing schools and saw the number of schools serving three or more food groups rise from 12% to 37%.

2022/23 2023/24
Pupils with access to a magic
breakfast each day
Partner schools supported
~~Pee a~~		 164,000
636
~~CT~~		 277,000
917
Local authority partnerships 3 4

Despite increasing the number of children and young people

being provided breakfast, the Magic Menu format has meant we’ve been able to make better use of donated food (gift in kind) and reduce our spend on paid for food (from £1,381k to £1,358k).

Number of schools serving three or more food groups:

Increased use of donated food:

==> picture [205 x 209] intentionally omitted <==

----- Start of picture text -----
37%
2024
12%
2023
----- End of picture text -----

==> picture [74 x 55] intentionally omitted <==

----- Start of picture text -----
£23k
Saving
----- End of picture text -----

Magic Breakfast Annual Report 2024

8

Steadfast focus on impact: CEO’s report

Advocating for long-term change

We went into the recent general election having helped ensure that free breakfasts for primary school children were pledged in the manifestos of both the Labour and Green parties. This was tremendously positive, though our experience in Scotland has shown us that we cannot count on promises alone.

We have continued to put pressure on the Scottish Government to deliver on their promise, now four years old, to introduce universal school breakfasts in primary and ASN schools.

WITH THE AIM OF SECURING A POLICY COMMITMENT TO FREE SCHOOL BREAKFASTS BY THE NEWLY ELECTED UK GOVERNMENT, IT WAS CRUCIAL THAT WE SHINE A LIGHT ON THE OPERATIONAL AND FINANCIAL CHALLENGES FOR SCHOOLS AS WELL AS THE GAPS IN THE PROPOSED POLICY FOR ENGLAND.

We also need to ensure that school breakfast provision on the statute books is inclusive and reaches those who need it most, just as it is in Magic Breakfast schools. Without this, those at

greatest risk of hunger may miss out on the nutritional safety net that free school breakfasts can provide.

Our goal is to build and showcase research and evidence of good practice, hold governments to account, and shine a light on all those children and young people who are still not getting breakfast – those who are hungry and falling through the gaps.

This applies as much to our own service delivery as it does to our advocacy and campaigning work. We cannot scale up and replicate inequalities.

Data and systems

In 2023/24 we have continued to encourage and embed a data-led culture, capturing and sharing insight across the organisation. Establishing a technology and transformation team has seen us deliver several key projects this year, including a new website, a portal for our partner schools, and better integrated and timely performance reporting.

As a result of increasing data maturity, we can more readily see

the communities living with the highest levels of deprivation, and growing attainment gaps, against our current operations.

We can now use this information to target our resources, support, and funds into the communities who need us most.

‘i Our target areas 2024/25

Edinburgh

Glasgow a

==> picture [77 x 14] intentionally omitted <==

----- Start of picture text -----
North East
----- End of picture text -----

Bradford

Leeds

Lancashire

==> picture [173 x 98] intentionally omitted <==

----- Start of picture text -----
Manchester
South Yorkshire
Birmingham
----- End of picture text -----

Merseyside Staffordshire ( Wolverhampton aw »

London

Magic Breakfast Annual Report 2024

9

Steadfast focus on impact: CEO’s report

Responsible growth

W e had a successful year of fundraising, raising £8.1 million against a target of £7.4 million. This saw our unrestricted reserves end the year at 7.0 months. We will continue to spend reserves through sustainable growth of our service delivery and preparing our systems and team for change in the year ahead.

EQUITY, DIVERSITY AND INCLUSION ACTION PLAN

ENVIRONMENTAL AND ORGANISATIONAL SUSTAINABILITY

We’ve engaged Sustainable X to embed our commitment to environmental and organisational sustainability, building on the mission statement we set and helping us build a roadmap to net zero. We are creating an action plan that aligns to the sustainable development goals (SDGs) to keep us on track and to ensure that we operate responsibly.

Cutting across our objectives is the continuing progress with our equity, diversity and inclusion action plan. This year saw us more clearly define what ‘lived experience’ means for Magic Breakfast, the role and opportunities for individuals with lived experience to contribute to decision making and challenged us all to think about how we best amplify their voices.

Assessing our environmental impact

Develop a procurement policy Collect carbon emissions data from our workforce and supply chain

Reduced supply chain food waste through improved forecasting and ordering processes

WE’RE HAVING AN IMPACT IN THE CORRIDORS OF POWER

Summary

As a team, this has been a year of successes and continued learning. We’re reaching more pupils who face hunger as a barrier to learning. We’re having an impact in the corridors of power. We have amplified the voices of young people speaking to this vitally important issue.

Yet we know many will not be helped by the current proposals. We will stand with those children and young people who are excluded and push their rights and experiences forward. We will continue to tackle hunger today, while seeking to end it for good for every child and young person in the UK.

Magic Breakfast Annual Report 2024

Our year in numbers: A financial summary

==> picture [1515 x 813] intentionally omitted <==

----- Start of picture text -----
Income
-7% +10%
+39% -7% +54% -2%
Decrease Increase
Increase Decrease Increase Decrease
2023/24 2023/24
2023/24 2023/24 2023/24 2023/24
=
4
2
= —f-—
a __ i
Reduction due to phasing of new schools Despite income being slightly lower than
We expected this to be down, due to the huge Improved utilisation of gift in kind food due joining through the year with 50% Full year of support for Wandsworth last year, we have seen a 9.5% uplift on our
impact of the Times Campaign in 2022/23 to introduction of the magic menu membership fee reduction for first year and Camden 2023/24 target income
Donated goods, services
Cash fundraising and facilities % of total food spend that is gift in kind Membership income Statutory income Overall income
2022/23 £8,735,798 2022/23 £800,870 2022/23 26.8% 2022/23 £638,190 2022/23 £278,534 2022/23 £10,506,654
2023/24 £8,087,736 2023/24 £1,115,484 2023/24 36.8% 2023/24 £593,572 2023/24 £429,316 2023/24 £10,329,745
Outgoings
+14% -2%
+22% +16% +29% +18%
Increase Decrease
Increase Increase Increase Increase
2023/24 2023/24
2023/24 2023/24 2023/24 2023/24
As we supported more children and young
ws << Af ® =e
people in 2023/24, total food costs increased
Us, es ee
as expected. However, the paid for food
eff reduced year on year due to the generosity sare Growth in full time equivalent staff to \ ==a> We
Increase due to the growth in children and of our corporate partners and greater Increase due to the growth in children and enable growth and focus on tech and
f —-—
young people supported utilisation of gift in kind food donations young people supported digital investment
Cost of food Paid for food expenditure Distribution costs Staff costs Other costs Overall spend
2022/23 £1,887,612 2022/23 £1,381,128 2022/23 £1,043,995 2022/23 £3,690,159 2022/23 £1,046,191 2022/23 £7,667,958
2023/24 £2,150,532 2023/24 £1,358,167 2023/24 £1,278,541 2023/24 £4,292,707 2023/24 £1,352,730 2023/24 £9,074,516
----- End of picture text -----

Increase in unrestricted reserves (less fixed assets) to support growth and navigate uncertainty in 2024/25 following Government's 10 pledge to provide a healthy and nutritious breakfast to all England primary schools.

2022/23:

==> picture [139 x 30] intentionally omitted <==

----- Start of picture text -----
£4,924,394
----- End of picture text -----

= 6.4 months of running costs

==> picture [162 x 236] intentionally omitted <==

----- Start of picture text -----
2023/24:
£ 6,145,298
----- End of picture text -----

= 7 months of running costs

Magic Breakfast Annual Report 2024

11

Magic Breakfast Annual Report 2024

WHO’S NOT HAVING

BREAKFAST?

12

Widespread hunger: The effect on communities

Gill McLuckie, Community and Engagement Area Manager, Scotland

W e’ve seen that life is becoming harder for families because of the rising cost of living. Families that were just about keeping their heads above water are no longer managing.

“ We have provided breakfast for so long now that we couldn’t imagine school life without it. But we can remember the impact that no breakfast had upon staff wellbeing. We would often be so concerned about some children being hungry that we were providing food from our own pockets. Having a healthier breakfast offer that the school provides every day has been a weight off our minds.

I speak to parents who say they don’t eat breakfast and their children don’t either. Many parents are skipping meals because they feel it takes food from the mouths of their families. The children pick up on this and their anxiety increases. Children are coming into school with the weight of hunger on their shoulders, and we’re expecting them to be able to learn.

When I think back to my time working in schools, I used to see children who, each morning, would be fidgeting, poorly behaved and struggling with concentration. I now firmly believe a lot of this behaviour could have been attributed to morning hunger.

Children don’t always recognise the symptoms of hunger either. They don’t always connect pains in their stomach, or feeling agitated or lethargic, with not having eaten. They’re so used to those feelings.

We’ve made inroads into our understanding of who’s affected by morning hunger. It’s not just the children and young people themselves; it’s their parents, teachers, friends and the community who also feel the impact.

Teacher at Skelton Primary School, North Yorkshire

That’s why I’m so passionate about the difference Magic Breakfast can make every day. By reaching those who aren’t eating breakfast and raising awareness by engaging with their communities, we change lives, we bring hope, and we help build better futures.

BRING HOPE

==> picture [127 x 97] intentionally omitted <==

----- Start of picture text -----
BETTER
FUTURES
HELP BUILD
----- End of picture text -----

==> picture [123 x 76] intentionally omitted <==

----- Start of picture text -----
CHANGE
LIVES
----- End of picture text -----

Understanding need: Our research

T he need for Magic Breakfast’s work remains high and widespread. Government statistics show that around nine pupils in every class of 30 are living in poverty in the UK, the highest number in a decade (Department for Work and Pensions).

“

The school implemented a universal breakfast program, offering a healthy and appealing breakfast option to all students before the school day began and again mid-morning. Teachers noted a significant rise in student attentiveness and participation in lessons. Students arrived with improved focus and energy levels, ready to learn.

This year, we’ve also witnessed the largest educational attainment gap in over a decade, with disadvantaged primary pupils being 10.3 months behind their wealthier peers, and secondary pupils lagging 19.2 months behind (Education Policy Institute, 2024). We commission and undertake research to better understand how we, and others, can best alleviate and end the consequences of hunger in the UK’s classrooms.

Health and educational outcomes

We commissioned the British Nutrition Foundation (BNF) to conduct a scientific review into the importance of breakfast for health and educational outcomes in children and

young people. The report, ‘Rise and shine: How breakfast impacts children and young people’ summarised school breakfasts’ impact on narrowing the attainment gap, reducing health issues, and breaking the cycle of poverty in society.

= +

Magic Breakfast partner school, Hampshire

A lack of healthy foods = risk of affected brain development

fa

Magic Breakfast Annual Report 2024

13

Understanding need: Our research

Barriers to uptake

“

Data shows a lower uptake of breakfast among secondary school pupils compared with primary school pupils. Our ‘Secondary Pilots’ research project, funded by The Barratt Foundation, seeks to help us identify and overcome the barriers secondary students face in accessing school breakfast.

Previously I had at least 3

children a day come to me to say they were hungry and hadn’t had breakfast. Now we’ve changed the way we do things to remove the stigma and barriers, I haven’t had a single child come to me to say they’re hungry.

Research pilots were conducted in ten schools across Scotland, each with different approaches to increase uptake and record the experiences of both pupils and staff. These findings will enable us to devise new approaches in secondary schools and develop good practice guidance for the sector to be shared next year.

We also worked with DataKind UK to identify which communities and cohorts are less likely to take advantage of breakfast at school. We found there is lower uptake among those where English is a second language, and this has led us to consider how we can better present our resources and messaging to the families of those who might be missing out. A more placebased approach to the work done by our Engagement Partners is being launched and tested from September 2024.

Pupil Support Lead, Leesons Primary School, Kent

The Magic Breakfast model helps schools overcome the challenges they face in reaching hungry pupils. Since partnering with us, 50% of our schools feel they have now overcome all the barriers preventing children from accessing their magic breakfast! Of those who still encounter challenges in uptake, 16% cite parental interest and 10% mention awareness of the importance of breakfast as barriers.

This is why we champion a multi-model approach, including provision for pupils arriving to school late, and are pivoting our engagement focus in 2024/25 to educating school communities.

Breakfast changes lives: Sophie’s story

Sophie Balmer, Magic Breakfast Board Advisor

A

A t primary school, breakfast club was one of my favourite parts of the day. I remember, after we ate, the staff would play a pop song and tell us to ‘wake up and shake up’ to the music. I never felt awkward, and never worried that anyone was thinking ‘Oh here come the kids who need the free food.’ It was relaxed and open, and no one felt embarrassed about being there.

Mam was a healthcare worker and a single mam of four. Having our breakfast at school helped her, especially if things were a bit tough money-wise. She could also rush off to work a bit sooner, and it took one extra worry off her plate.

But secondary school was different. Everything feels embarrassing when you’re a teenager, and I felt there was a stigma about getting breakfast. When I did go in for something to eat, I felt like the staff were thinking, ‘Thanks for making us come in early because your family can’t afford your breakfast.’ If there’s any sense of shame like that, you feel singled out. Food stops being enjoyable, and it ruins your self-confidence.

As I got older, I became more aware of the conversations Mam was having about money. Mam skipped a lot of meals, and I copied her subconsciously. I stopped eating breakfast and barely had anything at lunch. I thought I wasn’t that hungry, but looking back I can see that I was. I would sit in lessons, finding it difficult to concentrate, and come out of the classroom thinking, ‘I wasn’t even in that lesson.’

Now I’m 20, a student at the University of Leeds and a board advisor to Magic Breakfast. It’s my job to give my perspective on the work we do to the trustees. With two younger sisters still at school, I want to be part of the movement making sure no one is starting their school day too hungry to learn.

School breakfast is a lifeline for the parents who work difficult hours and a saviour for children who rely on the food and the social contact. I know my early experiences at breakfast club have helped me achieve in the long-term. The food choices and social spaces it created for me made me feel empowered and changed my perspective; I realised that school was somewhere I wanted to be.

Breakfast changes lives. It helped me succeed. And that’s why it’s so important to look for ways to reach everyone who’s missing out on food in the mornings.

Sophie Balmer

Sophie is one of Magic Breakfast’s new board advisors, along with Fiona Zeka. Both Sophie and Fiona were supported with breakfast at school, and now as young adults will be bringing their expertise, views and knowledge to our board of trustees as our work continues to eradicate morning hunger amongst children and young people.

"IF YOU DON’T DESERVE A BREAKFAST, WHY WOULD YOU DESERVE TO GO TO UNIVERSITY AND DO AMAZING THINGS?"

“

Breakfast is imperative for regulation in the mornings and has a huge impact on behaviour in the mornings. We couldn’t not offer it, as it is so important.

Safeguarding Lead, South Shields School, Tyne and Wear

Magic Breakfast Annual Report 2024

14 25

Magic Breakfast Annual Report 2024

15 27 Bae Gn 3 a. : ae ae 2 voce aa ig

More seats around the table: a RN ; > Reaching more children i:Mien’ T Fe o reach more children going without breakfast, it is essential that we ensure our offer is as accessible as possible to pupils at our partner schools. We have always championed a holistic breakfast offering that takes various forms, from breakfast clubs to grab and go models, to increase reach. This year, we have undertaken a range of additional activities, seeking to overcome some of the barriers to breakfast and increase uptake.

“

Supporting the success of schools

Greater choice, greater nutrition

Alongside food being delivered, a large part of the service that our partner schools receive is support and guidance to launch and optimise their breakfast provision so that it is stigma and barrier free. We support the effective implementation of multiple models of delivery in each school, having consistently found this to be best for school staff, pupils, and realising the benefits of breakfast.

We launched our Magic Menu to ensure we can sustainably feed more children and young people, and to provide choice across a variety of products and food groups. As a result, we have seen the number of schools receiving more than 3 different food groups raise from 12% to 37%.

We were particularly excited about trialling a new cereal, BEST Cereal, which is well known amongst young people due to influencers popular within this age group. This was an opportunity to place young people at the heart of our decision-making, and we felt it would resonate with them. It did! We ran a successful trial in secondary schools, where we are always looking to increase uptake, and the students were very keen to engage.

What are the different breakfast delivery models?

==> picture [108 x 15] intentionally omitted <==

----- Start of picture text -----
Breakfast clubs
----- End of picture text -----

Classroom breakfasts

Grab and go

Late arrivals

Breakfast clubs run before Grab and go breakfasts are the school day, providing available to pupils as they childcare, food and activities. arrive at school, in a location Where possible, we promote that is easily accessible, such breakfast clubs that are free as at the school gate or in the and accessible to all as a playground. This can run great way to ensure there independently or alongside a are no barriers or stigma. breakfast club.

Breakfast for late arrivals is crucial in ensuring that no one starts the day too hungry to learn and can be as simple as a basket of bakery items positioned at the sign-in desk.

Classroom breakfasts are offered to all children as they start their day and are often eaten while reading or doing early morning work. This model is particularly effective in reaching a high number of children and young people each day, ensuring no one is missing out.

We encourage a whole school approach, so that every member of staff has the knowledge to recognise the signs of hunger and feel confident in offering support. We carefully consider each school individually to work out what model will suit their needs, so every child and young person has access to breakfast daily.

Where do latecomers arrive? How best do we support young people

with additional supports needs? Is there a safe space that pupils who are feeling vulnerable gravitate towards? How can breakfast be made Sade \icgd aie available to each pupil in a way that works for them? I like to buddy up experienced schools with new schools to share what works! Gill McLuckie, Ps Magic Breakfast Area Manager de Spotlight on success: MAGIC BREAKFAST PARTNER SCHOOL, SOUTHMEAD PRIMARY, WENT FROM REACHING 7% OF THE CHILDREN ON THEIR SCHOOL ROLE +614% - a Ce °- WITH BREAKFAST TO OVER 50%, SIMPLY BY boost at ADDING A GRAB AND GO MODEL TO : a Southmead Pg =A - Bs Tair’[F-][os] 7” ~ THEIR BREAKFAST OFFER. Primary

Gill McLuckie,

Magic Breakfast Area Manager

Magic Breakfast Annual Report 2024

16 29

==> picture [1760 x 942] intentionally omitted <==

----- Start of picture text -----
More seats around the table:
More full tummies, more positive impact for the communities we serve
Reaching more children
Concentration in class 94%
Moving forward
Alleviating pressure on families 87%
At the end of 2023/34, we restructured our
Educational attainment
service delivery team to enable us to scale
83%
more efficiently and provide more
le aa &
localised support and education to Physical health and wellbeing
83%
schools and their communities.
Mental and emotional wellbeing 83%
Many teachers may not be aware that the
symptoms they see in their classrooms are
Attendance at school
80%
those of hunger and parents may not be
aware of the opportunity to access
breakfast in their school. Engagement Healthy eating habits 79%
“sas
and education will play a crucial role in
embedding national policy effectively. Social skills 77%
We will continue to listen to feedback from
Parents to access work opportunities 47%
9 ee
the children, young people, schools and
families who are the centre of what we do. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
The future looks very exciting, and success From Magic Breakfast’s Measuring and Monitoring Survey, 2023/24
will see ‘more seats around the table’ at
school breakfasts.
Partnerships overcome barriers
% of children and young people
53% engaging with each type of Magic
Increasing cost of food: Increase in donated goods, facilities
As we grew to support more children
Classroom Breakfast provision in 2023/24: and services:
and young people, we saw the cost of
food increase by £262,920 (14%) to
£2,150,532. However, thanks to our
amazing corporate partners, we saw
20%
23%
an increase of donated goods,
Grab and go (or
Breakfast clubs facilities and services of £315,000 in
playground provision)
value, ensuring that costs did not
+£315,000
4% prevent us from getting more
Other breakfasts into more schools.
14%
Figures from Magic Breakfast’s Measuring and Monitoring Survey, 2023/24
on 4;On laos
Magic Breakfast Annual Report 2024
Breakfasts at clubs +
breakfasts in classrooms +
breakfasts in playgrounds =
stigma-free breakfast
provision
277,000
children and Restructured support
young people offered a teams + increased
breakfast each day,
engagement with school
+69% on 2023
communities
= setting
us up for future growth
more
Magic Menu =
donated food used
+ more nutritional
breakfasts + more
choice for young
people
----- End of picture text -----

As we grew to support more children and young people, we saw the cost of food increase by £262,920 (14%) to £2,150,532. However, thanks to our amazing corporate partners, we saw an increase of donated goods, facilities and services of £315,000 in value, ensuring that costs did not prevent us from getting more breakfasts into more schools.

gay 17 31

Sustainable growth: Working with more schools

Rebekah Willetts, Business Development Manager

O ur new business development team works in partnership with local authorities to deliver hungerfocused breakfast provision in their local areas. This year, the team has been forming relationships with new local authorities across the country to expand our support, which is a key means of delivering on our strategic objectives.

A personalised approach makes for success.

Partnerships underpin our sustainable growth.

Working with local authority teams and school leaders in an area, we can shape the partnership to meet each community’s needs and priorities.

We have hundreds of schools on our waiting list who we can only support at a rate that our fundraised income allows. Partnerships with local authorities enable Magic Breakfast to support more schools to provide healthy and inclusive breakfasts with sustainable funding.

WE ENDED 2023/24 SUPPORTING 917 SCHOOLS, WITH 281 NEW SCHOOL PARTNERSHIPS ESTABLISHED AND PARTNER SCHOOLS IN SCOTLAND DOUBLING OVER THE YEAR

In partnership with local authorities...

...we can help tackle health inequalities, boost learning, and improve attendance. Breakfast is a low-cost, highoutcome intervention with a powerful role in overcoming economic, educational and health inequalities. Local authorities appreciate the vast potential of their investment in breakfast for both young people and the wider community, with families seeing reduced strain on household budgets and increased support for working parents.

Working with more schools

A local authority contract can cover all schools.

Funding from commissioned income means we have the potential to give every pupil across the area access to breakfast. This is aligned with our vision for universal breakfast and means that we can reach more children who are struggling with morning hunger, whatever the reason and irrespective of the pupil premium levels in the school they attend.

The schools pay no membership fees.

Everything is funded by their local authority, including food, delivery and expert support from our staff, which reduces pressure on school budgets.

The Westminster Foundation is funding a five-year project, providing breakfast to schools in Westminster, Cheshire and Lancashire. Other supporters, including The Swire Charitable Trust and The Bel Foundation, have enabled us to fund more schools and provide them with the equipment they need to set up their breakfast provision.

“

Having hunger-focused provision and being able to target children who were vulnerable to food insecurity was really important to us. Magic Breakfast provides food and brings a huge amount of experience to this space.

Safeguarding Lead, South Shields School, Tyne and Wear

Magic Breakfast Annual Report 2024

Ending morning hunger for good: Shaping the future

Katharine Voss, Campaigns Manager

What opportunity did the general election offer in ending morning hunger for good?

How can you persuade the Government to prioritise children and young people?

By bringing children’s voices to the fore and championing hungerfocused, universal and stigma-free provision. We are also backing up our asks with strong evidence and insights from pupils, parents, teachers, and school leaders.

It was an opportunity to mobilise our supporters and encourage the UK’s political leaders to prioritise and address hunger in our classrooms. We wanted to raise awareness of the fact that 1 in 5 children are at risk of being too hungry to learn at the start of the day[1] .

What was your strategy in the run-up to the election?

It was important to us that officials and politicians understood that there are lots of reasons why children come to school hungry. Effective provision that truly tackles hunger and overcomes stigma must take all of this into account. Take the traditional breakfast club format, for instance: it runs before school hours, so you won’t reach those who are persistently late. Consider that if you provide food in classrooms for the first 15 minutes of registration, you can reach more children.

Firstly, ensuring that school breakfast was in the party manifestos was key, as this would provide us with a commitment in England to hold them to account once in Government. Influencing this required engagement with key Members of Parliament whose remit covered education, poverty and health, as well as with the major parties’ policy advisors. We also worked with coalitions to ensure school breakfasts featured in their asks for the next Government and Magic Breakfast was aligning with the wider sector’s aims.

We know that school breakfasts can also be a way to help parents access work and we have worked to emphasise that if the objective is to address hunger and alleviate child poverty then the policy cannot focus purely on childcare. That will ensure that there are no barriers to breakfast, such as an additional charge (for childcare). It is also vital that any policy is funded with new, additional money and doesn’t remove budget from another part of a school’s already shrinking pot.

We had to be agile and prepared, as it was a highly volatile political environment with a new Scottish First Minister and rumours of an election in May. That early planning paid off when the election was called in July.

School breakfasts featured in both the Labour and Green Party manifestos. Labour promised a funded breakfast club in every primary school in England and while we welcomed this pledge as a step forward, we know it leaves many children and young people without breakfast.

This new money is also critical for the change we need in Scotland, where their commitment to free school breakfast in 2021 has still not been implemented. New money in Westminster’s budget releases new money in Scotland, and we are focused on ensuring that sees school breakfasts delivered ahead of the 2026 Scottish election.

Education is devolved, so this policy only affects pupils in England. Young people at secondary school, in ASN/SEND schools, in youth offending schemes or at pupil referral units would be missing out. And what, we asked, about the children who cannot get to school early enough for the traditional breakfast club model?

18 33 SPOTLIGHT on success “ ~. There is a damaging assumption that working families are able ~~We now have both a~~ to afford breakfast. There are some who were just above the ~~policy commitment and a~~ threshold and now, with rising costs, no longer are. ~~commitment to legislate~~ If we could end child morning -~ 4 ~~Im we~~ ~~ree to provide f primary~~ hunger for good, we’d have ~~school breakfasts in~~ families with less strain, not just financially, but also logistically. <q . ~~2~~ ~wiagic Sid ~~England, by the newly~~ For working families with busy oreakfas} ~~ee~~ mornings where providing ~~elected Government.~~ breakfast is one step too much,

If we could end child morning hunger for good, we’d have families with less strain, not just financially, but also logistically. For working families with busy mornings where providing breakfast is one step too much, there would be one less thing to worry about.

They would have a slower, more nurturing start and we’d see young people who were prepared to take on anything the day was going to throw at them.

Shelagh Todd and Kenny Stewart - Head Teacher and Deputy Head Teacher at Easter Carmuirs Primary School, Falkirk.

1The Food Foundation, Food Insecurity Tracker, January 2024

Magic Breakfast Annual Report 2024

19 35

Ending morning hunger for good: Shaping the future

Advocating for change

Recruit campaigners to call on parliamentary candidates to put breakfast on the agenda

Send a letter to the party leaders from teachers across the UK

Produce an implementation guide for key civil servants, ministers and MPs

Cultivate relationships with MPs who can support our asks

Work closely with the Department for Education to share best practice and ensure that children and young people remain at the centre of discussions

Collaborate with sector partners and coalitions to ensure school breakfast policy sits in wider strategies to end child poverty and improve school food

Prepare for party conferences, in England and in Scotland, to highlight these asks

“

I’ve never worked at a place where our issue is so high up on the government agenda. Seeing the government and the opposition both agreeing on the importance of breakfast is really encouraging. We must be doing something right! As we continue to take on our role of critical friend, the next year offers a lot of opportunity for us to get closer to delivering our vision.

Katharine Voss, Campaigns Manager

Magic Breakfast Annual Report 2024

20 37

Magic Breakfast Annual Report 2024

PEOPLE POWERED BY

38

Inspiring action: Raising awareness of the issue

S preading the word about what we do and why is what underpins the “ success our community has achieved. That’s why, this year, our brand and marketing has undergone a transformation. We have established a foundation on which we can better communicate the cause, champion change and inspire action.

Brand development

To increase our visibility and enable us to reach more audiences, we overhauled our Over the month of February, we brand identity. Our brand is a connector, linking us to our communities and acting called on our supporters in schools, as a catalyst for engagement. It can be a force for good and a flag behind which workplaces and at home to enjoy the movement to end child morning hunger can rally, which is why we invested in breakfast together with friends, developing a distinctive and compelling visual identify which would resonate with family and colleagues to raise our audiences. This was first introduced through the design of last year’s annual report. money and awareness for children going without breakfast. Pee,

The response to our call was amazing. Thanks to our community of celebrities, partners, schools and supporters, we raised over:

Broadening digital capabilities

Our work this year has included improving our digital capabilities, including launching a brand-new website, developing our email community experience, investing resource in social media tools and increasing our celebrity engagement. Celebrity partnerships have been influential in spreading the word about child morning hunger to new, diverse audiences.

~~The foundations have been laid for us to go from strength to strength in 2025 and beyond. We will continue working to mobilise —_——~~ ~~and support the movement that is fighting for a different future for hungry children.~~

==> picture [27 x 24] intentionally omitted <==

----- Start of picture text -----
21
39
----- End of picture text -----

==> picture [152 x 42] intentionally omitted <==

----- Start of picture text -----
£54,000
----- End of picture text -----

Website donations were up:

Tracking awareness

Crucially, especially given our investment in its development, we can now track public awareness of our brand. What’s more, we can also track awareness of the issue of child morning hunger. This insight allows us to truly measure the collective impact of our external communications in a way we couldn’t before. We have also developed new audience insights looking at how we might shift our narrative in the light of the primary commitment, and to ensure that those still missing out are not forgotten.

1570% (year-on-year)

==> picture [72 x 36] intentionally omitted <==

----- Start of picture text -----
24%
----- End of picture text -----

of surveyed members of the public recognised the campaign!

Magic Breakfast Annual Report 2024

3 22 41 i

Giving to Magic Breakfast

T he donors who give to Magic Breakfast play a vital role in funding lifechanging breakfasts. Of course, the more we raise through giving, the more children and young people we can reach with a nutritious morning meal. But our supporters don’t just fill hungry tummies when they donate… they also enable us to find and test new ways to reach those who are missing out and support our work in ending morning hunger for good.

Giving the... GIFT OF GROWTH

Donor funding will be used to transform our data systems, develop our data technology, improve our ability to draw out insight and enable us to make more informed decisions. This is vital for Magic Breakfast as we look to grow and develop.

This year, our focus has been on creating a compelling case for support and effectively communicating the story of Magic Breakfast’s impact, so that we can attract new donors and solidify our existing relationships with givers. We stay in touch, keeping donors abreast of the latest news and developments via our email community and through our Magic Morning online events, where supporters can hear directly from schools. This has resulted in an incredibly successful year, with £8.1 million raised through donations to Magic Breakfast.

Whatever the reason for their support, the commitment that our donors have to the cause never ceases to inspire us. We work closely with them to make sure they have the information they need to support us in the way that suits them and with their motivations.

10 years of players’ support

Many of the people that give to us do so indirectly. This year, we celebrated ten years of support from players of People’s Postcode Lottery, who have raised an incredible £4.8 million for Magic Breakfast over the last decade. We were delighted to receive a significant increase in our annual funding, bringing it up to £800,000. The size of this annual award, and it being unrestricted, makes a huge difference to the work we do and our ability to reach hungry children and young people.

Donations doubled

This year we had an outpouring of support for our Big Give campaign, which saw every donation given by our supporters matched by pledgers and the Childhood Trust. Our target had been to raise £150,000.

THANKS TO ALL THE DOUBLED DONATIONS AND OUR GIFT AIDERS , OUR TOTAL WAS OVER £193,000!

Fundraising for change

T his year, employees at The Access Group chose Magic Breakfast as their charity of the year and raised hundreds of thousands of pounds by taking on challenges and hosting fundraising events. Below, you’ll hear from Earl McFarlane, The Access Group’s Head of Support, who was one of nine Access Group colleagues who took part in a deadlifting world record. The team even skipped breakfast to complete the challenge hungry, an act of solidarity with children across the UK who face their daily challenges hungry.

What motivated you to take on this challenge?

I am in the blessed position to be able provide for my child emotionally, mentally and financially. Every child should experience the same, but not every parent and carer can provide financial support, which makes me profoundly sad. For this reason, I have always tried my hardest to raise awareness of Magic Breakfast. As I am constantly finding ways to challenge myself physically, I was keen to put both passions together for the good of the charity.

How demanding was the challenge for the group?

The physical side was the most difficult for us, and no food to power us on the day made it harder. Deadlifts target a lot of muscle groups. As competitors started to fade, the stronger members of the team took on the responsibility of more reps to try to increase our average number as a team, but as time went on, muscles got tired!

~~ce Cie elle oe eee ea~~ What did you enjoy most about the experience?

Challenge events

Everything! The day, the support, the amazing colleagues that helped organise and

This year, fundraisers have taken on a fantastic range of challenges to raise funds for Magic Breakfast. We’ve had skydives, marathons, Tough Mudders, ultra swims, hikes, step challenges and even an SAS-inspired course. One memorable event was a threeday rally across Europe in a car covered in baked beans, with those taking part dressed in breakfast-themed costumes!

increase awareness, the brilliant competitors, the venue, the staff. Mostly, it was the satisfaction that we were doing something that matters to people that matter.

How did the challenge go?

End to end, the challenge was a resounding success. Every person who attended, from support staff to people who came to cheer us on, helped to shine a light on this cause, and that was the aim. Magic Breakfast really cared about what we were doing and wanted to help. We didn’t reach our world record target, but we did raise a respectable amount of money and even appeared on local radio to promote the charity. That’s a win in my book! I will continue to fundraise for Magic Breakfast – it’s a great charity that’s very close to my heart.

Magic Breakfast Annual Report 2024

23 43

Strategic partnerships

T he partnerships team at Magic Breakfast works with companies, each of which support us in a different way, but all are aligned with our mission and dedicated to amplifying our impact.

“

The print suite that I curated for Magic Breakfast and Counter Editions has raised £112,000, which I am completely over the moon about! This will provide close to 400,000 children a breakfast. I have supported this charity for many, many years and I am so buzzed that we have raised so much money for the charity. Thank you, Magic Breakfast... long may you reign!

Over the past few years our portfolio of fundraising partners has grown. Partners help us reach more children who are going without breakfast, often employing creative means of doing so. Sometimes support is financial or though gifts in kind, other times it’s by using their platform to talk about our work, by helping us forge strategic relationships or by giving their staff time to volunteer with us.

==> picture [522 x 261] intentionally omitted <==

----- Start of picture text -----
||| |---|---| |Raised:| |co| |Corporate partnerships|£3,621,776| |Trusts and foundations|£1,972,149| |Individual giving|£1,095,961| |Philanthropy|£918,020| |Community and events|£479,830| |Gift in kind|£1,115,484| |Total combined cash fundraising| |£9,203,220| |and gift in kind value:|

----- End of picture text -----

Russell Tovey

During 2023/24, 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, the General Data Protection Regulation (GDPR), the Charities Act 2011 and the Charities (Protection and Social Investment) Act 2016. The charity is registered with the Fundraising Regulator and is committed to being an open, fair and respectful fundraiser.

Magic Breakfast establishes commercial participatory agreements with its commercial participators to ensure they comply with the Fundraising Code of Practice, and these are monitored by the charity. The charity does not engage professional fundraisers to raise funds on its behalf and direct marketing and fundraising is only undertaken where prior consent has been obtained and complies with GDPR, the Fundraising Code of Practice, the Charities Act 2011 and the Charities (Protection and Social Investment) Act 2016.

2 million+ breakfasts

Heinz provided over two million breakfasts this year, together with equipment to ensure that schools can prepare and serve breakfasts. When schools offer a magic breakfast, they can face practical challenges in preparing, heating and serving the food. Support from Heinz has been transformational in overcoming this. They worked with us to make sure schools have the resources and equipment to enjoy our breakfast provision at its best.

2 million portions of bread

In the past year, Warburtons has generously donated an incredible 2 million portions of bread - a huge triumph! Warburtons has also raised awareness of our partnership and vital work through their "Baked In" campaign and inspired young minds by taking part in Aspiration Days in Bolton, home of Warburtons.

Hundreds of volunteers

Hundreds of corporate volunteers took part in our volunteer programme to support children and young people in a number of ways, from decorating their classrooms, providing festive gifts or offering career advice and inspiration.

£100,000 donated

Universal Music donated £100,000 to support Black and other marginalised communities across 16 Magic Breakfast schools.

New hotel partnerships

We started working with Marriott Hotels, whose UK hotels have set an ambition of funding one million breakfasts per year whilst also volunteering with our partner schools in their local areas.

Fuel for Success

As part of our annual Fuel for Success campaign, partner restaurants including D&D, Hawksmoor, Thesleff Group and The Vineyard invited diners to add a voluntary £1 to their bills over May and June to provide breakfasts to young people sitting their exams. Celebrity supporters Will Poulter and Big Zuu also got on board to raise awareness of the huge impact of child hunger during the exam period.

Amplifying our key messages

Quaker's 'Share the Warmth' campaign saw our key messaging around the risk of child hunger amplified on packs, on billboards, on bus stops and in media, along with the donation of 3 million bowls of porridge shared between Magic Breakfast and FareShare.

Research and staff

This year marked the launch of our partnership with the Barratt Foundation, who generously committed to donating £500,000 over two years. Their support funds healthy and nutritious breakfasts, a research project in Scotland and three engagement partners.

7,500 children supported

The second year of our partnership with the Zurich Community Trust continued to deliver huge impact on tackling child hunger. By the end of June in 2024, the lives of over 7,500 children have been transformed through direct breakfast support, with over 938,000 healthy breakfasts consumed, and positively impacting just over 21,000 children in total since the start of support in July 2022. Going the extra mile, ZCT has supported with additional matched fundraising, strategic business support in the form of pro-bono projects, as well as enabling access to a host of training and learning and development opportunities.

There were no complaints made against the charity or its commercial participators regarding fundraising practices.

Magic Breakfast Annual Report 2024

24 | 45

Empowering staff: Ways of working at Magic Breakfast

We find increasing alignment across our work, thanks to a number of initiatives this year. Embedding our values in performance and introducing organisation-wide ‘ways of working’ has powered our effectiveness as a team. The launch of our behaviour and respect policy, alongside embracing compassionate candour, has boosted our confidence in communication.

Having different perspectives and backgrounds creates a diversity of thought that

extends through our work and is crucial to our success, but our staff group hasn’t been as diverse as we’ve wanted it to be. We now use blind recruitment. This has helped with the diversity of our appointments, and recruiting for potential as well as experience. Our Equity, Diversity and Inclusion journey has developed, with a learning pathway,

as diverse as we’ve wanted it to be. We now use blind recruitment. This has helped with

staff group and new policies and resources in place to support an inclusive culture.

Each of these puzzle pieces comes together to power the impact each one of us has. We support each other and work together. This is what empowers us to achieve our best and enables us to put children and young people at the centre of all we do.

“

Magic Breakfast is a compassionate organisation you’re allowed to bring your whole self to work. We are incredibly collaborative, valuing input from everyone. The training here is excellent and there are so many inspirational people to learn from. I feel that I’m constantly learning, evolving and developing, both professionally and personally.

==> picture [33 x 22] intentionally omitted <==

----- Start of picture text -----
“
----- End of picture text -----

O ur goal at Magic Breakfast is for our staff to thrive. Central to this is a people-centric working culture empowering everyone to give their best at work. Our focus is on enhancing our effectiveness through learning pathways and acting with agility to meet every opportunity to make a difference for children and young people.

UNLOCKING PRODUCTIVITY, ENJOYING WORK AND FINDING WORK-LIFE BALANCE.

We aim to enable our people to unlock their productivity, enjoy their work and find work-life balance. All our staff can use flexitime, and a third of them work flexibly with formally compressed or altered hours to fit around their lives. New family-friendly policies and procedures have been put in place including a maternity reinduction process and guidance for those going through, or supporting someone going through, menopause.

We know that, to ensure colleagues can thrive in an inclusive workplace, wellbeing is central and we have transformed our support for this. Wellbeing Champions and Mental Health First Aiders, who are trained to support colleagues, have now been introduced, alongside training around stress management and navigating change.

Gill McLuckie, Magic Breakfast Area Manager

Magic Breakfast Annual Report 2024

25 47

Thank you to our amazing supporters...

A s we look back over the year, we want to start by thanking the community of people and organisations who have powered our work. We are grateful to all our supporters, a few of which are listed here, and every one of which helps us to deliver life-changing breakfasts to children.

Corporate partners

• Jane Hodson, Lucas Hollweg, Clerkenwell Boy and all who contributed to the These Delicious Things cookbook

Trusts and foundations

• Players of People’s Postcode Lottery

Community Grant

• The Childhood Trust

Thank you...

A big thank you to you! Together we are making a difference.

• The Swire Charitable Trust

• Wilmington Trust, on behalf of numerous discretionary charitable trusts 

  - **WPA Foundation**

Development advisors

Major donors

Local authorities

Thank you to all the children and young people, parents, teachers and school staff that work with us

Magic Breakfast Annual Report 2024

26 49

Magic Breakfast Annual Report 2024

FINANCIAL REVIEW

27 51

Financial update

H aving negotiated a year of change during 2022/23 we have focused on growth and sustainability in 2023/24. We increased the number of children and young people getting access to breakfast, while ensuring growth of the charity’s cost base was sustainable and we were preparing for the future.

Across the charity, total costs increased by 18.3% to £9,074,516 (2023: £7,667,958) with food aid contributing £6,162,622. We invested in initiatives that will enable us to scale efficiently and increase our impact. These included the launch of our new website, additional data analytics and reporting capabilities, and the introduction of a schools’ portal to manage support materials and communications with partner schools more efficiently.

With more breakfasts delivered, the direct cost of food increased £262,920 (+14%) to £2,150,532 (2023: £1,887,612) with this being covered by donated (gift in kind) food while we saw paid for food expenditure reduce by £22,961 (-1.7%) to £1,358,167 (2023: £1,381,128).

Following a review of logistics partners the charity made the decision to move warehousing and distribution to Oakland International. This change positioned us for growth and provided greater cost certainty following a period of significant fuel and other inflationary increases.

Unrestricted reserves (excluding fixed assets) increased to £6,145,298 (2023: £4,924,394) which equates to 7.0 months of future cost coverage which sits outside of the policy range of 3.5 to 5.5 months.

Income reduced by -1.7% to £10,329,745 (2023: £10,506,654) which was anticipated due to the impact of the Times and Sunday Times Christmas appeal in 2022/23. The generosity from individual donors, corporate partners and other supporters, some of which are mentioned on page 25 contributed to fundraising income and donated goods, facilities and services of £9,203,220 (2023: £9,536,669).

With the accumulated reserves the charity plans to increase its support to children and young people with plans to grow our reach to 330,000 children and young people by the end of 2024/25. This growth will be achieved primarily through schools supported by charitable funds, which will reduce reserves sustainably, as well as through local authority contracts. Magic Breakfast will seek to increase provision for pupils in England

who attend secondary, SEND, and alternative provision schools as well as schools across Scotland.

Membership income declined by -7% to £593,572 (2023: £638,190) however this was offset by increased income from local authority contracts. Local authority contract income increased by +54.1% to £429,316 (2023: £278,534) as some schools in North Somerset began support, whilst Camden and Wandsworth authorities, recruited in 2023, were supported for the full year and we continued support for schools in Hammersmith and Fulham.

The charity is also exploring opportunities to leverage high interest savings accounts to improve returns on cash reserves whilst ensuring sufficient working capital to support planned growth.

Expanding into Wales

In 2024/25 we will be working with partners, schools, and policy makers to explore how we can best support children and young people in Wales. We have had an increased number of schools expressing interest in our support and we hope to bring value and build our learning and understanding of the work being done in Wales.

Investing in agility and effectiveness

Given the uncertainty and change that we continue to see in our operating environment, the charity is ensuring flexibility to respond in England to the new Government’s policy. We will continue to ensure that systems and processes can improve our productivity and enable us to scale up our operations through automation of processes and reporting. This will sit alongside our learning and development plans for 2024/25, which will focus on effectiveness, business partnering, and further embedding EDI into our work. ; ue \

Magic Breakfast Annual Report 2024

Reserves policy and going concern 28 ee 53

Principal risks and uncertainties

Principal risks

The Board of Trustees fully accepts its responsibilities for ensuring that the major risks to which the charity is exposed are identified, particularly those related to the operations and finances of the charitable company. The trustees also fully accept their responsibilities to ensure systems and procedures are in place to mitigate those risks. Major risks are those that have a high probability of occurring and would, if they occurred, have a severe impact on operational performance and/or achievement of the charity’s objectives.

How we manage risk

The charity has a risk management policy that outlines its approach to risk management and processes. To support the identification, management and mitigation of risks in a timely manner, the leadership team maintains a risk register for the charity. Board committees review risks relevant to their areas of oversight, and the CEO presents the full register to the Governance, Nominations and Risk Committee and an overview at quarterly Board meetings.

Financial risks

The financial performance of the charity is monitored against an annual budget and monthly management information on the charity’s financial position is produced to inform any decisions. This management information is reviewed monthly by the leadership team and a quarterly review is undertaken by the Finance and Audit Committee.

In addition, forecasting is updated throughout the year to reflect changes that impact on income and expenditure. Magic Breakfast continues to maintain strong stewardship with current donors to mitigate risk to our income, particularly as we navigate the introduction of a new national policy in England.

Although inflation has slowed compared to the prior years, we have planned for and experienced inflationary price increases from suppliers.

We maintain close relationships with suppliers and delivery partners to mitigate risks in our supply chain. We are also exploring partnerships that increase our buying power and improve customer service to our partner schools. As part of the financial review cost increases from the Government budget announcement will be managed along with other financial risks and opportunities that arise during the year.

Operational risks

We have made greater use of improved data and reporting with new systems being introduced to enable collaboration (project management tool) and automate processes. Solutions are being chosen that enable agility and our ability to respond to the uncertainty of our operating environment.

Having launched our portal for partner schools we will seek to leverage this to improve our service and communication with schools. The restructuring of our service delivery teams has also positioned us better to scale and contract as needed and in a targeted way. This will enable us to better respond to school breakfast policy and commissioning nationally and in a localised way.

Brand and reputational risks

We have developed our brand and analytics to monitor trust, support, and awareness of our organisation and our work. This will give us insight to better advocate for change and campaign for support of our cause as well as identifying potential risks to our fundraising.

Our ethical fundraising policy and robust due diligence processes are applied fairly and consistently across our partnerships – whether funders, partners, or celebrity influencers.

The Board of Trustees are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.

Reserves policy

At the year end, the charity held £6,145,298 (2023: £4,924,394) in unrestricted reserves (excluding fixed assets), the equivalent to 7.0 months of future running costs. The increase in reserves will minimise the financial risk exposure to the charity, enable the planned growth as well as working capital required to ensure sustainability of our support to schools.

Acknowledging the uncertainty in the current climate the Board of Trustees aims to have a level of unrestricted reserves which equates to between 3.5 to 5.5 months of future running costs. Our plans might see our forecast being outside of this range at a point in time, as we seek to set accurate and balanced plans. The current plans for growth will see the levels of reserves reduce during the next two financial years but remain within the range as set out in the policy.

The costs are based on the charity being able to cover all liabilities should all income cease.

The charity may choose to build up a level of reserves above 5.5 months to effectively plan for and implement changes in line with long-term strategic plans and to enable us to respond to the new Government’s school breakfast policy.

Material investment policy

Due to the nature of Magic Breakfast’s charitable work, historically it has been considered that the most appropriate policy is to hold surplus funds in a bank deposit, with the exception of £38,001 allotted as shares in the subsidiary organisation, Magic Outcomes Limited. The management and trustees of the charity are reviewing fixed saving options to leverage cash reserves during 2024/25.

Going concern

Given forward business planning and forecasts, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. This includes considering the financial and organisational challenges created by the rising cost of living and the new Government’s school breakfast policy in England. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

Further details regarding the adoption of the going concern basis can be found in the Accounting Policies, in Note 1 to these accounts.

Our increase in reserves will minimise the financial risk exposure to the charity, enable the planned growth as well as working capital required to ensure sustainability of our support to schools.

Magic Breakfast Annual Report 2024

n 29 55

Magic Breakfast Annual Report 2024

30 57

Structure governance and management

T he organisation is a charitable company limited by guarantee, incorporated in November 2003 and registered as a charity in March 2004.

The company was established under a memorandum of association which established the objects and powers of the charitable company and is governed under its articles of association.

All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in Note 6 to the accounts.

The charitable company is registered as a charitable company limited by guarantee and is constituted under a Memorandum of Association dated 26/11/2003 with the registered charity numbers 1102510 and SC048202

Governance

The decision-making body of the charity is the Board of Trustees, who are responsible for the governance and ensuring it pursues its charitable purpose. The trustees, who are also directors of the company for company law purposes, are recorded on page 2.

The trustees meet quarterly and regularly within committees to ensure good governance and provide guidance. We have three board committees: Finance and Audit, Governance, Nominations and Risk, and People and Culture. Their purpose is set out in their terms of reference. Committees meet between board meetings, and as required, and are made up of at least two trustees supported by at least one executive team member. The CEO attends all committee meetings.

Day to day management

The trustees delegate the day-to-day management of the charity to the CEO who provides the strategic direction and works with the Senior Leadership Team (SLT).

Magic Outcomes

Magic Breakfast wholly owns Magic Outcomes Limited which is presently used by the charity for licensing our brand. Magic Outcomes did trade during the year under review and transactions totalled £171,624 (2023: £112,264). See Note 9 for more information on Magic Outcomes trading activities.

==> picture [155 x 35] intentionally omitted <==

----- Start of picture text -----
We have three board
committees:
----- End of picture text -----

==> picture [4 x 13] intentionally omitted <==

----- Start of picture text -----
1
----- End of picture text -----

==> picture [131 x 16] intentionally omitted <==

----- Start of picture text -----
Finance and Audit
----- End of picture text -----

==> picture [197 x 208] intentionally omitted <==

----- Start of picture text -----
2
Governance, Nominations
and Risk
----- End of picture text -----

==> picture [8 x 13] intentionally omitted <==

----- Start of picture text -----
3
----- End of picture text -----

==> picture [138 x 17] intentionally omitted <==

----- Start of picture text -----
People and Culture
----- End of picture text -----

Trustee appointment, training and remuneration Appointment of trustees ~~nN~~

The management of the charitable company is the responsibility of the Magic Breakfast trustees who are elected and co-opted under the terms of the Articles of Association. Reviews are held periodically to identify any expertise gaps and appointments are made, where required, to strengthen the board. The most recent full review was in August 2023, undertaken in line with the UK Governance Code (using the DSC Governance App) and agreed actions are reviewed quarterly. This sits alongside regular skills and diversity audits. These assessments support forward planning of the Governance, Nominations and Risk Committee. During the financial year there were three appointments, detailed on page 2.

Trustee induction and training

The charity provides guidance to all newly appointed trustees on the responsibilities and requirements of the role. To make the Board as effective as possible, induction processes, training and review are in place; this includes trustee training, school breakfast visits, meetings with key staff and an annual performance and development review.

Remuneration policy for key management personnel

The charity has considered the disclosure requirements of the Charities Statement of Recommended Practice (SORP) for related party relationships and considers its Key Management Personnel to be the trustees and SLT. Related party disclosures are included in Note 18 of the accounts. The Pay and Benefits Policy ensures equity, transparency, and development opportunities for staff. It sets out that we will perform salary benchmarking at least every three years to ensure all salaries are in line with similar sized national education charities. This is carried out by the human resources function of the charity. The results of this benchmarking process and any recommended changes are provided to the People and Culture Committee for review and recommendation to the Finance and Audit Committee. Where the changes are significant or include Key Management Personnel, the Committees will make recommendations to the full board. In this instance, changes will only be made upon approval from the full board and will be minuted at the board meeting. Trustees are not remunerated for their roles as trustees but Key Management Personnel that make up the SLT received a salary for these roles.

Magic Breakfast Annual Report 2024

31 59

Statement of Responsibilities of Trustees

T he trustees (who are also directors of Magic Breakfast for the purposes of company law) are responsible for preparing the trustees’ annual report including the strategic report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In preparing these financial statements, the trustees are required to:

In so far as the trustees are aware:

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.

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 August 2024 was 12 (2023: 9). The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

Sayer Vincent LLP was re-appointed as the charitable company’s auditor during the year and has expressed its willingness to continue in that capacity.

The trustees’ annual report which includes the strategic report has been approved by the trustees on 5 December 2024 and signed on their behalf by

Aniela Shuckburgh

Chair

Magic Breakfast Annual Report 2024

32

Magic Breakfast Annual Report 2024

PLANS FOR THE FUTURE

Achieved in 2023/24 to aims for 2024/25

33

Looking ahead:

Plans for 2024/25

T his year has been a time of growth, learning, and exciting developments. We’re expanding as an organisation, increasing the number of children and young people we’re reaching, shining a light on those who still aren’t having breakfast and finding ways to fill those gaps. We’ve brought in new menus and new insights, and we’re developing ways to spread information on the significance of breakfast for everyone in the school community and at home.

Maximising impact

The evidence is clear. Breakfast transforms access to education and future prospects. It boosts the economy. When we can overcome the barriers, we can transform lives. We are working together across departments and across teams to maximise the impact of the work we do, becoming more efficient and more targeted.

We’ve created a new Impact and Insights team who will be developing our social impact strategy and evaluation framework, to enable us to better understand and direct our efforts towards the systemic issues that keep child morning hunger alive. This team will manage our research programme, evaluation of our delivery work and dissemination of evidence and best practice. In addition to building the evidence on uptake at secondary school, we are also focusing on the evidence of cumulative attainment, and the impact of breakfast on physical and mental health.

We have restructured our service delivery teams to organise our work more effectively. We will spend more time on whole school community engagement, removing barriers and stigma, and explaining the educational benefits of good nutrition. We’ll prioritise our current schools and communities while recruiting new ones.

Powered by the collective

One focus in the coming year will be to bring school leaders together, connecting schools who face similar challenges and sharing our expertise and the expertise of our partner schools. We can discuss good practice, ideas and innovation. There is so much we can all learn when we work collectively.

We are also focused on developing multi-year strategic partnerships to sustain our income into the future. We have a series of new propositions that package our work in interesting new ways.

Success in 2024/25 will be achieved by...

==> picture [8 x 273] intentionally omitted <==

----- Start of picture text -----
1
2
----- End of picture text -----

Growing our reach, profile and impact through meaningful engagement.

Embedding and reinforcing our existing systems and ways of working to help us operate with agility.

==> picture [8 x 13] intentionally omitted <==

----- Start of picture text -----
3
----- End of picture text -----

Developing new systems and tools to help us learn, increase understanding and identify new ways to improve and be more effective.

~~ee~~ Legislative change

There is still so much work for us to do. In 2024/25, we will build on strong foundations to create and seize opportunities to the benefit of children and young people. This will need our partners – current and new – to work strategically with us toward a shared aim.

We will be analysing the legislation to see who is included and who is excluded from

government plans. We will advise on how breakfasts will be implemented and funded,

to protect the most vulnerable and those at risk of missing out.

Alongside this, we have started to explore working in Wales, where we are getting enquiries from schools in spite of legislation being in place, due to gaps in provision and implementation of the policy. We are already advisors as well as providers, and that role will continue.

~~Hunger doesn’t end at age 11, nor does it avoid those in different establishments. We also know that the disadvantage gap is already prevalent before children start Reception, and the crucial role that early years education plays.~~

Equity, diversity and inclusion action plan 2024/25

Reflect the communities and people we exist to support

Empower our workforce

Learn and develop

Number of children and young people reached daily

==> picture [219 x 73] intentionally omitted <==

----- Start of picture text -----
330,000
2024/25
277,000
2023/24
----- End of picture text -----

Number of schools

==> picture [43 x 34] intentionally omitted <==

----- Start of picture text -----
1,273
2024/25
----- End of picture text -----

==> picture [43 x 32] intentionally omitted <==

----- Start of picture text -----
917
2023/24
----- End of picture text -----

==> picture [204 x 64] intentionally omitted <==

----- Start of picture text -----
Cash fundraising (million)
£8.3m
£8.1m
2024/25
2023/24
----- End of picture text -----

Magic Breakfast Annual Report 2024

34

Magic Breakfast Annual Report 2024 FINANCIAL STATEMENTS

35 67

Independent auditor’s report

Opinion

We have audited the financial statements of Magic Breakfast (the ‘charitable company’) for the year ended 31 August 2024 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

• Give a true and fair view of the state of the charitable company’s affairs as at 31 August 2024 and of its incoming resources and application of resources, including its income and expenditure for the year then ended

Other Information

The other information comprises the information included in the trustees’ annual report, including the strategic report, 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.

• Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice

• Have been prepared in accordance with the requirements of the Companies Act 2006

Opinions on other matters prescribed by the Companies Act 2006

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

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 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 Magic Breakfast'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.

• The trustees’ annual report, including the strategic report, has been prepared in accordance with applicable legal requirements.

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, 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 charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. We maintain close relationships with suppliers and delivery partners to mitigate risks in our supply chain. We are also exploring partnerships that increase our buying power and improve customer service to our partner schools.

36 69

Independent auditor’s report continued...

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 are set out below.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Capability of the audit in detecting irregularities

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

• We enquired of management and the audit and risk committee, which included obtaining and reviewing supporting documentation, concerning the charity’s policies and procedures relating to:

• Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;

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.

• Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;

• The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.

• We reviewed any reports made to regulators.

Joanna Pittman (Senior statutory auditor)

17 December 2024

for and on behalf of Sayer Vincent LLP, Statutory Auditor, 110 Golden Lane, LONDON, EC1Y 0TG

37 71

Statement of financial activities

Statement of financial activities incorporating income and expenditure account for the year ended 31 August 2024

Unrestricted funds Restricted funds Total funds Total funds
2024 2024 2024 2023
Income from Note £ £ £ £
Donations and grants 2 8,617,565 1,267,570 9,885,135 10,223,029
Charitable activities 3 429,316 - 429,316 278,534
Investments 4 15,294 - 15,294 5,091
Total income 9,062,175 1,267,570 10,329,745 10,506,654
Expenditure on £ £ £ £
Raising funds 5 1,569,656 - 1,569,656 1,270,526
Food aid 5 4,969,462 1,193,160 6,162,622 5,225,389
Making the case for change 5 1,304,068 38,170 1,342,238 1,172,043
Total expenditure 7,843,186 1,231,330 9,074,516 7,667,958
Net income for the year 1,218,989 36,240 1,255,229 2,838,695
Transfer between funds 13 - - - -
Net movement in funds 1,218,989 36,240 1,255,229 2,838,695
Reconciliation of funds
Total funds brought forward 14 5,102,864 325,126 5,427,990 2,589,295
Total funds carried forward 6,321,853 361,366 6,683,219 5,427,990

All income and expenditure derive from continuing activities. The Statement of Financial Activities includes all gains and losses recognised during the year. The prior year Statement of Financial Activities is detailed in Note 19.

Balance sheet

Balance sheet as at 31 August 2024

==> picture [802 x 566] intentionally omitted <==

----- Start of picture text -----
2024 2023
Fixed assets Note £ £ £ £
Intangible assets 8 138,554 140,469
Investments 9 38,001 38,001
Total fixed assets 176,555 178,470
Current assets £ £ £ £
Stock 10 156,958 56,569
Debtors 11 627,974 648,722
Cash at bank and in hand 6,419,624 5,219,761
Total current assets 7,204,556 5,925,052
Creditors £ £ £ £
Amounts falling due
12 (697,892) (675,532)
within one year
Net current assets 6,506,664 5,249,520
Net assets 6,683,219 5,427,990
Charity funds £ £ £ £
Restricted funds 13 361,366 325,126
Unrestricted funds 13 6,321,853 5,102,864
Total funds 6,683,219 5,427,990
----- End of picture text -----

The financial statements were approved and authorised for issue by the Trustees on 5 December 2024 and signed on their behalf by:

Aniela Shuckburgh, Chair Company registration number: 04977015

38 73

Statement of cash flows

1. Accounting policies

Statement of cash flows for the year ended 31 August 2024

2024 2023
Cash fows from operating activities Note £ £
Net cash provided by operating activities 15 1,184,569 2,870,072
Cash fows from investing activities £ £
Interest from investments 4 15,294 5,091
Net cash provided by investment activities 15,294 5,091
Change in cash and cash equivalents in the year 1,199,863 2,875,162
Cash and cash equivalents brought forward 16 5,219,761 2,344,599
Cash and cash equivalents carried forward 6,419,624 5,219,761

Basis of preparation

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 the Companies Act 2006.

The charity also owns a wholly owned subsidiary company, Magic Outcomes Limited, a company limited by shares and

registered in England and Wales (company registration 04621084). The investment has not been consolidated and group accounts have not been prepared because the subsidiary is considered immaterial to the accounts of the charity.

Magic Breakfast meets the definition of a public benefit entity

under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest pound.

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.

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 expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure are sufficient with the level of reserves for the charity to be able to continue as a going concern.

Funds

General funds are unrestricted funds which 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 costs of raising and administering such funds are charged against the specific fund.

Investment income, gains and losses are allocated to the appropriate fund.

Income recognition

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably.

For donations to be recognised, the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained, then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Donated goods, services or facilities are recognised when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the item is probable and that economic benefit can be measured reliably.

On receipt, donated goods, services or facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain goods, facilities or services of equivalent economic benefit on the open market. A corresponding amount is then recognised in expenditure in the period of receipt.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity. This is normally upon notification of the interest paid or payable by the bank.

39 75

1. Accounting policies continued...

School membership income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

Grant income is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

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 the amount of the obligation can be measured reliably.

Expenditure is categorised under the following headings:

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

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 been allocated to expenditure

on raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

Governance costs are those incurred in connection with the

running of the charity and compliance with constitutional and statutory requirements.

Costs of raising funds 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 5.

Intangible fixed assets and amortisation

Identifiable development expenditure is capitalised to the extent that:

Provision is made for any impairment.

Amortisation is provided on intangible fixed assets at rates calculated to write off the cost of each asset, less their estimated residual value, over their expected useful lives on the following basis: Software - 33.3% straight line

Investments

Investments in subsidiaries are measured at cost less impairment.

Stock

Stock represents donated and purchased breakfast ingredients and is recorded at fair value less impairment.

Debtors or creditors receivable/payable within

one year

Debtors are recognised 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.

Creditors are recognised when the charity has a present legal or constructive obligation resulting from a past event and the settlement is expected to result in an outflow of economic benefits.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. The financial assets and financial liabilities of the charity are as follows:

Debtors – trade and other debtors (including accrued income) are basic financial instruments and are debt instruments

measured at amortised cost as detailed in Note 11. Prepayments are not considered to be basic financial instruments and are measured at the amount prepaid, net of any trade discounts due.

Cash at bank – is classified as a basic financial instrument and is measured at face value.

Liabilities – trade creditors, accruals and other creditors will be classified as financial instruments and are measured at amortised cost as detailed in Note 12. Taxation and social security are not included in the financial instruments’ disclosure. Deferred income is not deemed to be a financial liability, as in the cash settlement has already taken place and there is simply an obligation to deliver charitable services rather than cash or another financial instrument.

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. It therefore does not suffer tax on income or gains applied for charitable purposes.

Employee benefits

The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

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:

40 77

2. Income from donations and grants

a)

a)
Unrestricted funds Restricted funds Total funds Total funds
Current year 2024 2024 2024 2023
£ £ £ £
Donations 6,290,304 724,448 7,014,752 7,168,763
Membership income 593,572 - 593,572 638,190
Grants 529,862 543,122 1,072,984 1,567,036
Donated goods, facilities and services 1,115,484 - 1,115,484 800,870
Other 88,343 - 88,343 48,170
Total 2024 8,617,565 1,267,570 9,885,135 10,223,029
Total 2023 9,211,919 1,011,110 10,223,029

Total donated goods, facilities and services for the year were £1,115,484 (2023: £800,870) and comprise of the following:

b)

b) ( : ,) o oer msc aneous goos an servces.
Unrestricted funds Restricted funds Total funds Total funds
Prior year 2023 2023 2023 2022
£ £ £ £
Donations 6,469,983 698,780 7,168,763 3,611,758
Membership income 638,190 - 638,190 820,834
Grants 1,254,706 312,330 1,567,036 1,804,149
Donated goods, facilities and services 800,870 - 800,870 1,163,921
Other 48,170 - 48,170 6
Total 2023 9,211,919 1,011,110 10,223,029 7,400,668
Total 2022 6,293,682 1,106,986 7,400,668

3. Income from charitable activities

a)

a)
Unrestricted funds Restricted funds Total funds Total funds
Current year 2024 2024 2024 2023
£ £ £ £
Contract income (Hammersmith & Fulham) 126,548 - 126,548 100,694
Contract income (Camden) 121,708 - 121,708 76,303
Contract income (Wandsworth) 161,060 - 161,060 101,537
Contract income (North Somerset) 20,000 - 20,000 -
Total 2024 429,316 - 429,316 278,534
Total 2023 278,534 - 278,534
There are no unfulfilled conditions or other contingencies attached to the contract income above.
b)
Unrestricted funds Restricted funds Total funds Total funds
Prior year 2023 2023 2023 2022
£ £ £ £
Contract income (Hammersmith & Fulham) 100,694 - 100,694 90,509
Contract income (Camden) 76,303 - 76,303 -
Contract income (Wandsworth) 101,537 - 101,537 -
Total 2023 278,534 - 278,534 90,509
Total 2022 90,509 - 90,509

41 79

4. Income from investments

a)

a)
Unrestricted funds Restricted funds Total funds Total funds
Current year 2024 2024 2024 2023
£ £ £ £
Bank interest receivable 15,294 - 15,294 5,091
Total 2024 15,294 - 15,294 5,091
Total 2023 5,091 - 5,091
b)
Unrestricted funds Restricted funds Total funds Total funds
Prior year 2023 2023 2023 2022
£ £ £ £
Bank interest receivable 5,091 - 5,091 793
Total 2023 5,091 - 5,091 793
Total 2022 793 - 793

5. Analysis of expenditure

a)

Charitable activities

Current year Raising
funds		 Food
aid		 Making the case
for change		 Governance
costs		 Support
costs		 Total
2024		 Total
2023
£ £ £ £ £ £ £
Staff costs 956,617 1,528,181 785,317 64,775 649,265 3,984,155 3,445,264
Temporary staff costs - - 4,758 - - 4,758 52,449
Other staff costs 7,518 4,642 3,621 867 92,087 108,735 75,073
Contractors and
consultants		 49,428 10,780 1,510 133,341 195,059 117,373
Direct food costs - 3,562,516 8,931 - - 3,571,447 3,032,102
Administrative costs 30,000 89,569 74,801 8,759 209,922 413,051 325,741
Premises costs 31,690 56,456 26,628 1,746 20,414 136,934 160,805
Legal and
professional fees		 4,534 - - - 1,200 5,734 50,884
Publicity, marketing
and fundraising		 251,580 7,897 243,987 695 7,384 511,543 307,608
Governance costs - - - 49,765 - 49,765 29,879
Bad debts - 3,458 - - - 3,458 1
Amortisation 21,234 46,947 7,078 - 14,618 89,877 70,780
1,352,601 5,310,446 1,156,631 126,607 1,128,231 9,074,516 7,667,958
Support costs 195,155 766,196 166,880 1,128,231 837,242
Governance costs 21,900 85,980 18,727 126,607 99,316
Total 2024 1,569,656 6,162,622 1,342,238 9,074,516 7,667,958
Total 2023 1,270,526 5,225,389 1,172,043 7,667,958

The fee payable to Sayer Vincent for the audit of Magic Breakfast's accounts was £23,280 (2023: £21,720). There were no other services provided by Sayer Vincent other than the statutory audit this year (2023: £NIL)

42 81

5. Analysis of expenditure continued...

b)

Charitable activities

Prior year Raising
funds		 Food
aid		 Making the case
for change		 Governance
costs		 Support
costs		 Total
2023		 Total
2022
£ £ £ £ £ £ £
Staff costs 840,746 1,316,024 686,614 60,425 541,454 3,445,264 2,836,111
Temporary staff costs - - 51,262 - 1,187 52,449 159,169
Other staff costs 5,991 8,975 16,231 475 43,400 75,073 150,395
Contractors and
consultants		 25,617 376 19,841 - 71,538 117,373 143,518
Direct food costs - 3,032,102 - - - 3,032,102 4,858,697
Administrative costs 29,676 89,417 50,689 6,280 149,679 325,741 240,188
Premises costs 34,177 72,545 30,952 2,257 20,874 160,805 197,987
Legal and
professional fees		 5,394 - 44,890 - 600 50,884 55,606
Publicity, marketing
and fundraising		 152,510 25,256 121,333 - 8,508 307,608 243,522
Governance costs - - - 29,879 - 29,879 23,360
Bad debts - 1 - - - 1 1,159
Amortisation 21,234 42,468 7,078 - - 70,780 29,492
1,115,345 4,587,164 1,028,891 99,316 837,242 7,667,958 8,939,204
Support costs 138,725 570,545 127,972 837,242 863,809
Governance costs 16,456 67,680 15,180 99,316 117,248
Total 2023 1,270,526 5,225,389 1,172,043 7,667,958 8,939,204
Total 2022 1,026,251 7,054,655 858,298 8,939,204

6. Trustee remuneration, benefits and expenses

The charity does however permit Trustees to claim expenses to

Trustees give their time freely and during the year, Trustees have not received any remuneration (2023: £NIL) or benefits of any kind (2023: £NIL) for the work they have undertaken.

reimburse them for costs that they incur in fulfilling their duties. Expenses incurred by Trustees, or otherwise met by the charity, are detailed below, and these were wholly in fulfilment of charity business:

2024 2023
£ £
Disclosure Barring Service checks 53 202
Training - 25
Printing and stationery - 9
Travel and subsistence 238 780
Total 291 1,016
Total number of trustees paid expenses 5 9
7. Staff costs
Staf costs were as follows: 2024 2023
£ £
Wages and salaries 3,465,116 3,032,439
Social security costs 320,826 292,899
Pension costs 146,038 117,701
Termination and redundancy costs 52,175 2,225
Total 3,984,155 3,445,264

43 83

7. Staff costs continued...

The average number of persons employed by the charity during the year was as follows:

The average number of persons employed by the charity
during the year was as follows: 2024 2023
No. No.
Food aid 39 38
Making the case for change 18 17
Fundraising 22 18
Support 14 11
Governance 1 1
Total 94 85
The following number of employees received employee benefts
(excluding employer pension costs and employer’s national
insurance) during the year between: 2024 2023
No. No.
£60,000-£69,999 5 3
£70,000-£79,999 3 1
£80,000-£89,999 - -
£90,000-£99,999 1 1
Total 9 5

The total amount of employee benefits received by Key Management Personnel, including employers’ national insurance, is £477,816 (2023: £465,111). The charity considers its Key Management Personnel to comprise the Trustees and the members of the Senior Leadership Team listed in the Reference and Administrative details on page 2.

8. Intangible fixed assets

Data
Cost ERP system School portal Website warehouse Total
£ £ £ £ £
At 1 September 2023 212,340 15,805 12,596 - 240,741
Additions - 11,068 62,581 14,313 87,962
At 31 August 2024 212,340 26,873 75,177 14,313 328,703
Amortisation
At 1 September 2023 (100,272) - - - (100,272)
Charge for the period (70,780) (4,479) (14,618) - (89,877)
At 31 August 2024 (171,052) (4,479) (14,618) - (190,149)
Carrying amount
At 31 August 2024 41,288 22,394 60,559 14,313 138,554
At 31 August 2023 112,068 15,805 12,596 - 140,469

During the year, the charity finalised redevelopment of the website and development of the school portal. These went live in February 2024 and March 2024 respectively.

During the year, the charity began developing a data warehouse and this is an asset that is currently under construction.

The Trustees of the charity, other than detailed in Note 6, did not receive any remuneration in the year.

Magic Breakfast Annual Report 2024

44 85

£

9. Fixed asset investment

Shares in group undertakings

Cost

Magic Outcomes Limited - £1 ordinary shares 38,001

Eckersley (Head of Finance and Performance), Elizabeth Little (Partnership Development Lead) and Michael Honan (Magic Breakfast Trustee).

The charity owns the whole of the issued share capital of Magic Outcomes Limited, a company registered in England. The company number is 04621084. The registered office address is 42-46 Princelet Street, London, E1 5LP.

A summary of the results of the subsidiary is shown below.

The subsidiary is used for non-primary purpose trading activities. Available profits for 2024 will be distributed under Gift Aid to the parent charity. The investment has not been consolidated and group accounts have not been prepared because the subsidiary is considered immaterial to the accounts of the charity.

The charity charges a management fee charge to Magic Outcomes payable to the parent charity, Magic Breakfast, which is based on a proportion of income across the group entity. The management fee for the year ending 31 August 2024 was £88,342 + VAT (2023: £48,165).

The directors of the subsidiary are Lindsey MacDonald (CEO), Emily Wilkie (Director of Fundraising and Development), Anthony

2024 2023
£ £
Turnover 171,624 112,264
Gross profit/(loss) 171,624 112,264
Administrative expenses (90,335) (50,915)
Profit/(loss) on ordinary activities before taxation 81,289 61,349
Taxation on profit on ordinary activities - -
Profit/(loss) for the financial year 81,289 61,349

9. Fixed asset investment continued...

Retained earnings

Retained earnings
Total retained earnings brought forward 64,256 82,932
Ordinary share capital 38,001 38,001
Profit/(loss) for the financial year 81,289 61,349
Distribution under Gift Aid to parent charity (61,349) (80,025)
Total retained earnings carried forward 122,197 102,257
The aggregate of the assets, liabilities and reserves was:
Assets 247,560 226,024
Liabilities (125,363) (123,767)
Reserves 122,197 102,257
10. Stock
2024
2023
£
£
Undistributed breakfast
ingredients
156,958
56,569
Stock recognised as an expense during the year was £2,173,679
(2023: £1,894,519).		 11. Debtors
2024
2023
£
£
Trade debtors
424,747
522,566
Other debtors
90
1,740
Accrued income
86,386
77,922
Prepayments
116,751
46,494
Total
627,974
648,722

45 87

12. Creditors

13. Statement of funds

Amounts falling due within one year

2024 2023
£ £
Trade creditors 258,473 123,918
Other taxation and social security 132,625 155,498
Other creditors 46,302 3,739
Accruals 81,141 59,699
Deferred school membership income 179,351 329,042
Amounts owed to group undertakings - 3,636
Total 697,892 675,532
School membership income is deferred as it is recognised over the entirety of the membership period.
Grant income is deferred when there are performance obligations which have yet to have been satisfied and therefore there is no
entitlement to the income.
Balance brought Income Income Balance carried
forward at released deferred forward at
Deferred income 1 September 2023 31 August
2024
£ £ £ £
School membership income 329,042 329,042 179,351 179,351

a)

==> picture [802 x 481] intentionally omitted <==

----- Start of picture text -----
Balance at Balance at
1 September 31 August
Current year 2023 Income Expenditure Transfers 2024
Unrestricted funds £ £ £ £ £
-
General funds 5,102,864 9,062,175 (7,843,186) 6,321,853
Restricted funds
- - -
The Access Foundation 400,237 (400,237)
- -
The Big Give 13,090 172,149 (185,239)
- -
Erica Wax and Andrew Balls 130,000 (3,994) 126,006
-
Zurich Community Trust (UK) Limited 112,490 108,000 (112,490) 108,000
- -
Westminster Foundation 82,685 (62,540) 20,145
- -
Universal Music 85,000 (30,473) 54,527
- - -
The Davies Family Charitable Fund 60,000 (60,000)
- - -
Nabeel Bhanji and Sahar Meghani 50,000 (50,000)
-
Other restricted funds 199,546 179,499 (326,357) 52,688
-
Total restricted funds 325,126 1,267,570 (1,231,330) 361,366
-
Total funds 5,427,990 10,329,745 (9,074,516) 6,683,219
----- End of picture text -----

The Zurich Community Trust restricted fund is used provide food aid to schools and to support our policy and campaigning work in the UK.

The General fund is an unrestricted fund which is 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.

The Westminster Foundation restricted fund is used to provide food aid to schools in Westminster, Cheshire and Lancashire.

The Access Foundation, The Davies Family Charitable Fund and

Nabeel Bhanji and Sahar Meghani restricted funds are used to

Universal Music ’s Taskforce for Meaningful Change restricted fund is used to provide food aid to schools in the UK with a high proportion of black ethnic pupils.

provide food aid to schools in the UK.

The Big Give restricted fund is used to provide food aid to schools in London.

Other restricted funds are made up of restricted funds which are subject to varying restrictions regarding their use, however no single fund is material in nature.

The Erica Wax and Andrew Balls restricted fund is used to fund our investment in data and technology to support the integration and utilisation of data and insights into service delivery.

46 89

13. Statement of funds continued...

b)

==> picture [802 x 677] intentionally omitted <==

----- Start of picture text -----
Balance at Balance at
1 September 31 August
Prior year 2022 Income Expenditure Transfers 2023
Unrestricted funds £ £ £ £ £
General funds 2,008,394 9,495,544 (6,424,134) 23,061 5,102,864
Restricted funds
- - -
Kraft Heinz 309,201 (309,201)
-
Zurich Community Trust (UK) Limited 120,000 120,000 (127,510) 112,490
-
The Big Give 42,872 98,236 (128,017) 13,090
- - -
Guy’s and St Thomas’ Foundation 99,389 (99,389)
- -
ScottishPower Foundation 80,000 (35,781) 44,219
-
Central England Co-Operative Limited 33,900 30,300 (25,083) 39,117
- -
Masonic Charitable Foundation 51,000 (32,220) 18,780
- -
Tesco Community Grants 1,191 50,875 (52,066)
- - -
The Davies Family Charitable Fund 50,000 (50,000)
- -
Crucible Foundation 50,000 (26,939) (23,061)
-
Other restricted funds 233,549 221,498 (357,617) 97,430
Total restricted funds 580,901 1,011,110 (1,243,824) (23,061) 325,126
-
Total funds 2,589,295 10,506,654 (7,667,958) 5,427,990
----- End of picture text -----

14. Analysis of net assets between funds

a)

a)
Unrestricted Restricted Total funds
Current year funds 2024 funds 2024 2024
£ £ £
Intangible fixed assets 138,554 - 138,554
Fixed asset investments 38,001 - 38,001
Current assets 6,843,190 361,366 7,204,556
Creditors due within one year (697,892) - (697,892)
Total 6,321,853 361,366 6,683,219
b)
Unrestricted Restricted Total funds
Prior year funds 2023 funds 2023 2023
£ £ £
Intangible fixed assets 140,469 - 140,469
Fixed asset investments 38,001 - 38,001
Current assets 5,596,290 325,126 5,921,416
Creditors due within one year (671,896) - (671,896)
Total 5,102,864 325,126 5,427,990

15. Reconciliation of net movement in funds to net cash flow from operating activities

==> picture [802 x 581] intentionally omitted <==

----- Start of picture text -----
2024 2023
£ £
Net movement in funds for the year
1,255,229 2,838,695
(as per Statement of Financial Activities)
Adjustment for £ £
Decrease in intangible assets 1,915 42,379
Interest from investments (15,294) (5,091)
Increase in stock (100,389) (20,753)
Increase in debtors 20,748 (224,341)
Increase in creditors 22,360 239,181
Net cash provided by operating activities 1,184,569 2,870,072
16. Analysis of cash and cash equivalents
2024 2023
£ £
Cash in hand 6,419,624 5,219,761
----- End of picture text -----

17. Operating lease commitments

The charity is in receipt of donated office premises therefore there are no further lease payments owing. During the year, the charity leased a storage facility however there are no future minimum lease payments owing under non-cancellable operating leases.

During the year, the lease expenditure for office premises totalled £NIL (2023: £NIL). During the year, the lease expenditure for the storage facility totalled £5,834 (2023: £4,745) which is recognised in the Statement of Financial Activities.

==> picture [35 x 1080] intentionally omitted <==

----- Start of picture text -----
47
91
----- End of picture text -----

18. Related party transactions

During the year, the charity received unrestricted donations of £6,025 (2023: £102,300) and restricted donations of £75,000 (2023: 47 91 £50,000) from trustees. Of the total restricted donations, two donations totalling £60,000 were given by The Davies Family Charitable Fund and the remaining £15,000 was made up of three donations which were given during the Big Give Christmas Appeal. The purposes of these restricted funds are outlined under Note 13.

During the financial year, the charity engaged in a transaction with DataKind UK, a charity in which Lindsey MacDonald, our Chief Executive Officer, serves as a trustee. The transaction was valued at £5,000 and involved providing pro bono support to analyse our uptake data in schools and how this compared with local demographic and community data. The value of this donation is also disclosed in Note 4 under donated professional fees. The only other trustee related party transactions are those detailed in Note 6.

19. Prior year statement of financial activities

Unrestricted funds Restricted funds Total funds Total funds
2023 2023 2023 2022
Income from Note £ £ £ £
Donations and grants 2 9,211,919 1,011,110 10,223,029 7,400,668
Charitable activities 3 278,534 - 278,534 90,509
Investments 4 5,091 - 5,091 793
Total income 9,495,544 1,011,110 10,506,654 7,491,970
Expenditure on £ £ £ £
Raising funds 5 1,267,050 3,476 1,270,526 1,026,251
Food aid 5 4,021,594 1,203,795 5,225,389 7,054,655
Making the case for change 5 1,135,490 36,553 1,172,043 858,298
Total income 6,424,134 1,243,824 7,667,958 8,939,204
Net income for the year 3,071,410 (232,714) 2,838,695 (1,447,234)
Transfer between funds 13 23,061 (23,061) - -
Net movement in funds 3,094,470 (255,775) 2,838,695 (1,447,234)
Reconciliation of funds
Total funds brought forward 14 2,008,394 580,901 2,589,295 4,036,529
Total funds carried forward 5,102,864 325,126 5,427,990 2,589,295

magic breakfast fuel for learning