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← Worcester YMCA

2025-03-31-accounts

Company no. 05056873 Charity no. 1102766

Worcester YMCA

Report and Consolidated Audited Financial Statements

31 March 2025

Worcester YMCA

Reference and administrative details

For the year ended 31 March 2025

Company number 05056873
Charity number 1102766
Registered office and Gordon Anstis House
operational address Loxley Close
Redditch
B98 9JS
Trustees Trustees, who are also directors under company law, who served during
the year and up to the date of this report were as follows:
Lindsay Sartori Chair
Melanie Braden
Emma Cartwright
Harvinder Khatkar Appointed 17 March 2025
Robert Pearce Appointed 9 December 2024
Rev Gail Rogers
Rev Michael Sermon
Philip Smiglarski
Chief executive officer Annette Daly
Company secretary Annette Daly
Bankers Unity Trust Bank plc
Nine Bridley Place
Birmingham
B1 2HB
Solicitors MFG Solicitors LLP
Adam House
Birmingham Road
Kidderminster
Worcestershire
DY10 2SH
Auditors Godfrey Wilson Limited
Chartered accountants and statutory auditors
5th Floor Mariner House
62 Prince Street
Bristol
BS1 4QD

1

Worcester YMCA

Report of the trustees

For the year ended 31 March 2025

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice - Accounting and Reporting by Charities (effective from January 2019).

Structure, governance and management Constitution

The Charity is a charitable company limited by guarantee and not having a share capital, with members required to contribute up to a maximum of £1 each should there be a deficiency on winding up. The Charity is governed by its Articles of Association.

Organisational structure

The Charity is governed by its board of volunteer trustee directors, responsible for overseeing strategy and policy, approving annual budgets & accounts, who work in conjunction with the senior executive staff who recommend strategy, policy and exercise operational management. They hold at least four meetings per annum to consider business and progress against agreed plans plus hold strategic discussions and consider future work and direction. On appointment trustees receive induction including Charity Commission guidance. Attendance at meetings, interests and skills are monitored and reviewed annually. The YMCA movement offers support, development and benchmarking information. Codes of Governance and Conduct have been adopted.

The Charity is part of the worldwide YMCA movement and is affiliated to the National Council of YMCAs in England and Wales and through them to the World Council of YMCAs. It receives no funds from either the National Council or the World Council but pays an affiliation fee to the National Council of YMCAs.

The Charity has two wholly owned subsidiary undertakings Little Treasures Limited and First Class Nursery (Kidderminster) Limited, which both operate nurseries and contribute to the overall objectives and activities of the group. The Charity itself is also a subsidiary of another charity, YMCA Worcestershire Limited.

The Board of Trustees oversees and endorses or challenges the short and medium term strategies recommended by the senior executive staff. The Board of Trustees aims to ensure the long term interests of the Charity are not adversely affected by decisions taken in the medium term and ensures the ethos and values of the Charity are maintained.

The day-to-day control of the Charity's operations is exercised by the senior management team made up of the Chief Executive, Head of Housing and Support, Head of Operations, and the Head of HR. The senior management team attends Trustees' meetings. In setting the salaries of the senior management team the Board of Trustees considers charity benchmark information and that from other appropriate organisations within the YMCA movement.

The Charity is organised so that those for whom activities are provided and key stakeholders are involved in the design, monitoring and evaluation of that provision; clear access to senior management and the trustees is integral to the structure and is part of our engagement process.

2

Worcester YMCA

Report of the trustees

For the year ended 31 March 2025

Recruitment and appointment to the Board of Trustees

The Board of Trustees consists of up to fifteen elected members who are appointed for a three-year term, but who may stand for re-election at the end thereof up to a total of two further terms. Trustees who are co-opted during the year are appointed up until the next Annual General Meeting when they are eligible for election. Trustees are elected by the Members of the Charity at the Annual General Meeting. Worcestershire YMCA Limited is the sole member of Worcester YMCA.

All Board members acknowledge their commitment to the Christian ethos of the Charity.

The Directors of the company are also charity trustees for the purposes of charity law and throughout this report are collectively referred to as the Trustees. Trustees give their time voluntarily and receive no benefits from the charity in respect of this commitment. Any expenses reclaimed from the charity or payments made to them are set out in the notes to the accounts.

It is the aim of the Trustees to have the Board of Trustees primarily made up of individuals from the community it serves and simultaneously achieve a rich diversity of perspectives and experience, competent to oversee the operations of the Charity. The Trustees seek to recruit new members accordingly. The perspectives, experience and skills of individual Trustees are considered to ensure a balance across the Board of Trustees. Potential Trustees are made aware of the aims and purposes of the YMCA Movement and must indicate their desire to join the Movement and accept the responsibilities involved.

Trustee induction and training

As part of their induction programme, new Trustees are provided with a welcome pack including copies of literature produced by the Charity Commission and the YMCA Movement, including the YMCA Code of Governance. Background information relating to the Charity including copies of the Articles of Association, latest financial information, copies of minutes and policies are included in the welcome pack. The Board of Trustees schedule four meetings per annum for ordinary business plus meetings to consider the work of the Charity and future direction.

As part of the YMCA Movement, Trustees have access to its trustee development programme and training, support and benchmarking information. The Board of Trustees undertakes periodic background and skills audits and as a result identifies certain characteristics it will require of future members. Attendance at Trustees' meetings is monitored.

The Charity works in partnership with other organisations, funders and commissioners that are compatible with its ethos and values.

Code of governance

The Charity's Board has adopted the National YMCA Code of Governance, based on the National Housing Federation Code of Governance. During the year, the Board conducted an assessment of compliance with the Governance and Financial Viability Standard and is satisfied that the Association fully complies.

3

Worcester YMCA

Report of the trustees

For the year ended 31 March 2025

Corporate governance - internal financial control

The Board takes ultimate responsibility for ensuring the Charity maintains a robust system of internal controls, tailored to our operating environment. These controls are designed to provide reasonable assurance regarding:

The Board of Trustees receives and reviews regular reports from management and from the external auditors to provide reasonable assurance that control procedures are in place and are being followed. Formal procedures have been established for instituting the appropriate action to correct weaknesses identified from the above reports.

While no system can offer absolute assurance against misstatement or loss, the Board is responsible for establishing and maintaining effective internal financial controls. Key elements of our system include:

Principal risks and uncertainties and risk management

The Charity maintains a risk register covering governance, operational, financial, external and compliance risks. The Board of Trustees receives and reviews regular reports from management including major risks facing the Charity and action taken to reduce or mitigate the effects of those risks.

Governance Risks

4

Worcester YMCA

Report of the trustees

For the year ended 31 March 2025

Operational Risks

Financial Risks

Environmental and External Risks

Compliance Risks

5

Worcester YMCA

Report of the trustees

For the year ended 31 March 2025

Financial review

Reserves

The Charity makes adequate provision, by way of financial reserves, to enable the discharge of statutory and contractual obligations and to support continuity of business in the face of potential risks.

The Board of Trustees considers there are sufficient assets to meet obligations as they arise. Net current assets of the Group are £1,088,189 (2024: £1,105,592) and total funds and reserves are £1,545,782 (2024: £1,442,207).

The overall funds of the Group have increased as a consequence of a Group surplus of £103,575 (2024: decreased as a consequence of a Group deficit of £245,129) arising from income exceeding operational expenditure in the year under review. It should be noted that central costs have not been apportioned between YMCA Worcestershire Limited and the Charity for operational reasons.

The Charity does not trade for profit, but plans for income to exceed expenditure each year, ensuring a margin of safety to manage the unexpected, its Articles of Association prevent the distribution of reserves, which are instead applied to further the charity's aims and objectives.

The Board of Trustees has reviewed its reserves policy and the designation of reserves. The policy is to aim to maintain funds in reserves at least sufficient to fund 2 months total Group expenditure, being £254,359, to cover the eventuality of a material decline in incoming resources and to hold at least half of that amount in cash at bank.

Free reserves are traditionally calculated as net assets, £1,545,782, less restricted funds, £nil, less fixed assets, £1,192,387, which amount to a surplus of £353,395. However, the nature of the Charity means adjustment should be made for long term liabilities which are secured against the housing properties in fixed assets, £716,021. By that calculation, the adjusted Group free reserves are £1,069,416. Therefore, the adjusted Group free reserves exceed the reserves target by £815,057. Free reserves have been built up from operating surpluses over several years such that free reserves exceed the minimum required by the reserves policy. The Charity and Group plan to hold and build upon free reserves to support continuity of activity in the face of potential risks. The Board of Trustees will regularly review this policy having regard to the changing financial, regulatory and competitive environment in which the charity operates.

Pension deficit

As explained in note 21, Worcester YMCA participated in a contributory pension plan providing defined benefits based on final pensionable pay for employees of YMCAs in England, Scotland and Wales. At 31 March 2024, the pension deficit for the Charity and the group was £18,773 (2024: £27,622) as shown on the balance sheet. A corresponding pension deficit reserve is also held on the balance sheet.

Worcester YMCA recognises possible concern relating to its participation in a defined benefit pension scheme. Appropriate action has been taken: The scheme was closed to new members in 2007, and the link to final salary broken in 2011. Additional contributions continue to be made to reduce the deficit. As part of the YMCA Federation, the multi-employer scheme is run by an independent board of trustees with employer representation through the Principal Employer, the National Council of YMCAs. The pension scheme trustees obtain an actuarial valuation every three years and we have considered the implications to the charity's finances from the latest available actuarial valuation.

6

Worcester YMCA

Report of the trustees

For the year ended 31 March 2025

We have reviewed the charity's ability to continue to deliver its charitable objectives by ensuring budgets, forecasts and plans are available and include the impact of the deficit repayments. The trustees included the impact of pension scheme deficit repayments in considering going concern status, reserves, and the risks and uncertainties that the charity face noted elsewhere in this Report.

Worcester YMCA benefits from the pension scheme trustees and the Principal Employer seeking suitable specialist professional advice both to manage the scheme and in the continuing effort to explore ways of reducing the overall pension deficit. Further details are included in the note 21 of the financial statements and accounting policy.

The valuation as of 1 May 2023, showed a YMCA Pension Plan deficit of £9.1 million. Consequently, Worcester YMCA were advised to make annual contributions of £9,642 from 1 May 2023, with no uplift in subsequent years. At 31 March 2025, the current recovery period is three years commencing 1 May 2024.

Fundraising

Fundraising plays an increasingly important role in enabling us to achieve our charitable objectives and deliver vital services. We are committed to ensuring that all our fundraising activities are conducted to the highest ethical and professional standards, in full compliance with all relevant legislation and best practice guidelines.

Our approach to fundraising is underpinned by the following principles:

  1. Legal Compliance: We adhere strictly to all applicable laws and regulations governing fundraising in the United Kingdom. This includes, but is not limited to, the Charities Act 2011 (and its amendments, such as the Charities (Protection and Social Investment) Act 2016), data protection legislation (including GDPR and the Data Protection Act 2018), and any specific licensing requirements for activities such as street collections, house-to-house collections, lotteries, and raffles.

  2. Commitment to the Code of Fundraising Practice: While our fundraising activities currently fall below the threshold requiring mandatory registration with the Fundraising Regulator, we are fully committed to applying and upholding the standards set out in the Code of Fundraising Practice. This code mandates that our fundraising activities are:

  3. Legal: Operating within the bounds of the law;

  4. Open: Transparent about our processes and willing to provide information;

  5. Honest: Acting with integrity and not misleading the public about our cause or how donations will be used; and

  6. Respectful: Treating all members of the public, particularly those who may be vulnerable, fairly and with respect, avoiding undue pressure or unreasonably persistent approaches.

7

Worcester YMCA

Report of the trustees

For the year ended 31 March 2025

  1. Charity Commission Requirements: We ensure that all funds raised are used exclusively for our stated charitable purposes. We comply with Charity Commission guidance on fundraising, including:

  2. Responsible Management of Funds: Ensuring safe and secure handling of donations and that fundraising costs are proportionate;

  3. Clear Appeal Wording : All appeals clearly state the identity of our charity, the purpose for which funds are being raised, and how they will be used. Where applicable, we clearly outline what will happen to any surplus funds or if insufficient funds are raised for a specific appeal;

  4. Transparency and Accountability: We provide comprehensive information on our fundraising activities, demonstrating where money comes from and how it is expended. We have robust procedures for dealing with complaints, ensuring they are accessible and handled promptly and sensitively; and

  5. Due Diligence: We undertake appropriate due diligence on all significant donations and partnerships to protect the charity's reputation and ensure funds are ethically sourced.

  6. Best Practice and Ethical Conduct: Beyond regulatory requirements, we strive for excellence in fundraising by:

  7. Supporter Care: Building and maintaining positive, respectful relationships with our supporters, ensuring they have a positive experience when engaging with us;

  8. Protection of Vulnerable People: Taking all reasonable steps to treat potential donors fairly, particularly those in vulnerable circumstances, and ensuring that donations are not accepted where an individual lacks the capacity to make an informed decision;

  9. Training and Oversight: Ensuring that all staff and volunteers involved in fundraising are adequately trained and understand their responsibilities regarding ethical conduct and compliance. We regularly review our fundraising practices to identify areas for improvement; and

  10. Risk Management: Proactively identifying and managing any reputational, financial, or operational risks associated with our fundraising activities.

Employment of disabled persons

The Charity operates an equal opportunities employment policy and is committed to be Disability Confident. Employers will be positive about their abilities. Employers who use the symbol make five commitments to action, relating to recruitment, communication of vacancies, offering interviews, anticipating reasonable adjustments and supporting people who become disabled.

Objects and activities

As a Christian charity committed to helping people, especially the young, particularly at times of need, without discrimination, our faith calls us to stand alongside people on their personal journey, and help them develop in body, mind and spirit.

Accordingly, demonstrating our Christian faith and sharing it through social action we are active in working towards our vision of an inclusive future, where everyone can reach their true potential. We aim to be recognised as the leading provider of activities which inspire transformation. The Charity's objects are:

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Worcester YMCA

Report of the trustees

For the year ended 31 March 2025

To advance the Christian faith, including by:

Our aims mean we work with others to deliver activities through which all young people can be offered the opportunity to develop in body, mind and spirit so they have hope of experiencing life in all its fullness.

Key strategic objectives

Our medium to long-term strategy focuses on three key areas:

Achievements and performance Measuring our success

We measure the success of our strategy through a continuous cycle of planning and review:

9

Worcester YMCA

Report of the trustees

For the year ended 31 March 2025

Review of activities

Operating from our own centres and accommodation units, as well as those of other organisations, we provide a range of services. These include preschool nurseries, youth work, support for young people moving towards independent living, 'move on' accommodation, and support for vulnerable adults.

Key charitable activities

Our strategy

Our strategy is to build on the strength of the YMCA's Early Years and families presence across the County. We work in partnership with others to improve the health of mothers and their babies. We also work with older children and their families to make them better informed and empower them to improve their lives.

Additionally, we provide opportunities to prepare young adults, including the marginalised, for adult life and the world of work. This is accomplished through positive activities, employability skills, health and wellbeing initiatives, volunteering, community and family engagement, and targeted mentoring. In partnership with the global YMCA movement and other Christian organizations, we aim to deliver highquality youth work and religious education to improve outcomes for young people.

Housing and Support

We provide 14 units of accommodation and support for young people aged 18-35 who are in training, education, or employment. This offers quality social housing at affordable rents in a city with high housing demand. Our accommodation enables residents to maintain their employment and training. We are continuously looking for new partners and networks to enhance our support for residents, helping them sustain their tenancies and transition when they are ready.

Nurseries

Our trading subsidiaries, First Class Nursery (Kidderminster) Limited and Little Treasures Limited, continue to provide excellent care and development for young children. They operate at a very high standard in a challenging market. The nurseries enhance our group's provision and contribute to the diversification of our income sources. Our curriculum is built on a framework that offers stimulating learning experiences, guided by Christian values. This helps children develop their spiritual, social, moral, and cultural understanding, fostering lifelong learning in a supportive environment tailored to

Value for money

Value for money is a core part of our sustained service strategy. By consolidating activities across the group, we continue to find opportunities to increase value for money and dilute costs over a broader base.

Public benefit

The Board of Trustees has considered the Charity Commission's guidance on public benefit when planning our activities. Our work directly benefits communities and young people within Worcestershire. We support parents, children, young people, and vulnerable adults through a wide range of activities, including flexible childcare, out-of-school programs, formal and informal education, leisure activities, health and wellbeing support, and residential accommodation.

10

Worcester YMCA

Report of the trustees

For the year ended 31 March 2025

We are committed to responding to the needs of the community and allowing their input to influence our developments. Consultation takes place through various channels, including surveys, one-to-one sessions, and informal meetings. We regularly review our services against current best practices and regulatory guidelines, and we have established formal procedures for addressing comments and complaints to ensure continuous improvement.

Plans for future periods

Our assessment of this year's performance will inform our medium to long-term strategy. Our core charitable objects remain relevant, and we have engaged with staff to develop short-to-medium-term plans for consolidating our activities in response to reduced public spending. The organisation has also begun to invest in its infrastructure to provide a more comprehensive and cohesive offer to a wider range of potential beneficiaries.

Further analysis of our financial performance can be found in notes 2 to 7 of the financial statements.

Statement of responsibilities of the trustees

The trustees (who are also directors of the charity for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

The trustees are required to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and the group and the incoming resources and application of resources, including the net income or expenditure, of the charity and the group for the year. In preparing those financial statements the trustees are required to:

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

In so far as the trustees are aware:

11

Worcester YMCA

Report of the trustees

For the year ended 31 March 2025

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.

Auditors

Godfrey Wilson Limited were appointed as auditors to the group and parent charity during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on 26 September 2025 and signed on their behalf by

Lindsay Sartori - Chair

12

Independent auditors' report

To the members of

Worcester YMCA

Opinion

We have audited the financial statements of Worcester YMCA (the 'parent charity') and its subsidiary (the 'group') for the year ended 31 March 2025 which comprise the consolidated statement of financial activities, consolidated and parent charity balance sheets, consolidated statement of cash flows and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and the Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charity 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 the provisions available for small entities, in the circumstances set out in note 6 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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.

13

Independent auditors' report

To the members of

Worcester YMCA

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

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement set out in the trustees’ 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 they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

14

Independent auditors' report

To the members of

Worcester YMCA

Our 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 procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:

(1) We obtained an understanding of the legal and regulatory framework that the group and parent charity operates in, and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance.

(2) We reviewed the group and parent charity’s policies and procedures in relation to:

(3) We inspected the minutes of trustee meetings.

(4) We enquired about any non-routine communication with regulators and reviewed any reports made to them.

(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations.

(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error.

(7) We assessed the risk of fraud through management override of controls and carried out procedures to address this risk. Our procedures included:

▪Testing transactions that are unusual or outside the normal course of business.

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

15

Independent auditors' report

To the members of

Worcester YMCA

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

Use of our report

This report is made solely to the charityʼs 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 charityʼs members those matters we are required to state to them in an auditorʼs 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 charityʼs members as a body, for our audit work, for this report, or for the opinions we have formed.

Date: 26 September 2025

Robert Wilson FCA (Senior Statutory Auditor)

For and on behalf of:

GODFREY WILSON LIMITED

Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

16

Worcester YMCA

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2025

Note
Income from:
Donations
2
Charitable activities
3
Other trading activities
4
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
5
6
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
19
Net income / (expenditure) and net
movement in funds		 Unrestricted
£
-
88,767
1,540,938
24
1,629,729
1,323,953
202,201
1,526,154
103,575
1,442,207
1,545,782		 2025
Total
£
-
88,767
1,540,938
24
1,629,729
1,323,953
202,201
1,526,154
103,575
1,442,207
1,545,782		 2024
Total
£
89,359
77,499
1,089,702
-
1,256,560
1,092,001
409,688
1,501,689
(245,129)
1,687,336
1,442,207

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 19 to the accounts.

All income and expenditure in the prior period related to unrestricted funds.

17

Worcester YMCA

Consolidated balance sheets

As at 31 March 2025

As at 31 March 2025
The group The group The charity The charity
2025 2024 2025 2024
Note(s) £ £ £ £
Fixed assets
Intangible assets 9 - 19,466 - 19,466
Tangible assets 10 1,191,697 1,083,078 464,344 482,625
Investments 11, 12, 13 690 690 601,533 579,876
1,192,387 1,103,234 1,065,877 1,081,967
Current assets
Debtors less than 1 year 14 870,517 238,047 1,575,934 1,444,528
Cash at bank and in hand 547,093 1,123,414 49,772 81,898
1,417,610 1,361,461 1,625,706 1,526,426
Liabilities
Creditors: amounts falling due
within 1 year 15 (329,421) (255,869) (81,153) (64,842)
Net current assets 1,088,189 1,105,592 1,544,553 1,461,584
Total assets less current liabilities 2,280,576 2,208,826 2,610,430 2,543,551
Creditors: amounts falling due after
more than 1 year 17 (716,021) (738,997) (716,021) (738,997)
Defined benefit pension provision 21 (18,773) (27,622) (18,773) (27,622)
Net assets 18 1,545,782 1,442,207 1,875,636 1,776,932
Funds 19
Unrestricted funds
Pension reserve (18,773) (27,622) (18,773) (27,622)
General funds 1,564,555 1,469,829 1,894,409 1,804,554
Total charity funds 1,545,782 1,442,207 1,875,636 1,776,932

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

Approved by the trustees on 26 September 2025 and signed on their behalf by

Lindsay Sartori - Trustee

18

Worcester YMCA

Consolidated statement of cash flows

For the year ended 31 March 2025

Cash flows from operating activities
Net movement in funds
Adjustments for:
Loan interest paid
Depreciation charges
Amortisation charges
Interest received
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Decrease in provision
Net cash (used in) / provided by operating activities
Cash flows from investing activities:
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
Cash flows from financing activities:
Loan interest paid
Net cash used in financing activities
(Decrease) / increase in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2025
£
103,575
48,403
31,021
19,466
(24)
(632,470)
50,576
(8,849)
(388,302)
(139,640)
24
(139,616)
(48,403)
(48,403)
(576,321)
1,123,414
547,093		 2024
£
(245,129)
50,049
30,957
209,236
274,972
(34,943)
(44,394)
240,748
-
-
-
(50,049)
(50,049)
190,699
932,715
1,123,414

Analysis of net changes in debt are given in note 20.

19

Worcester YMCA

Notes to the financial statements

For the year ended 31 March 2025

1. Accounting policies

a) General information and basis of preparation

Worcester YMCA a charitable company limited by guarantee registered in England and Wales. The registered office address is Gordon Anstis House, Loxley Close, Redditch, B98 9JS.

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

Worcester YMCA 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 note.

b) Group accounts

These financial statements consolidate the results of the charitable company and its whollyowned subsidiaries on a line by line basis. Transactions and balances between the charitable company and its subsidiaries have been eliminated from the consolidated financial statements. Balances between group companies are disclosed in the notes of the charitable company's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

c) Going concern basis of accounting

The accounts have been prepared on the assumption that the charity is able to continue as a going concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves. There are no material uncertainties about the charity's ability to continue as a going concern.

d) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from the government and other grants, whether 'capital' grants or 'revenue' grants, 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.

Income received in advance of provision of childcare services is deferred until criteria for income recognition are met.

e) Donated services and facilities

Donated professional services and donated facilities are recognised as income 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 by the charity of the item, is probable and the economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised.

20

Worcester YMCA

Notes to the financial statements

For the year ended 31 March 2025

1. Accounting policies (continued)

e) Donated services and facilities (continued)

On receipt, donated professional services and donated 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 services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

f) Interest receivable

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.

g) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particularly areas of the charity's work or for specific projects being undertaken by the charity.

h) Expenditure and irrecoverable VAT

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

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

i) Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. These costs have been allocated in full to charitable activities.

j) Tangible fixed assets

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Freehold buildings 10 to 50 years Fixtures and fittings 20% straight line Computer equipment 20% straight line Motor vehicles 25% straight line

Items of equipment are capitalised where the purchase price exceeds £1,000. No depreciation is charged on assets under construction.

21

Worcester YMCA

Notes to the financial statements

For the year ended 31 March 2025

1. Accounting policies (continued)

k) Intangible fixed assets

Intangible fixed assets are amortised at rates calculated to write off the assets on a straight line basis over their estimated useful economic lives. Impairment of intangible assets is reviewed where circumstances indicate that the carrying value of an assets may not be fully recoverable. Amortisation is provided at the following rates:

Goodwill

5 years straight line

l) Investments in subsidiaries

The charitable company has two wholly owned subsidiaries, Little Treasures Limited, registered company number 04029930 and First Class Nursery (Kidderminster) Limited, registered company number 08887253. The subsidiaries are used for non-primary purpose trading activities. The subsidiary undertakings are valued at thier net asset value less any cumulative impairment losses in the charitable company's accounts. Any gain or loss, whether realised or unrealised, is taken to the Statement of Financial Activities.

m) Listed investments

Listed investments traded on a recognised stock exchange are stated at fair value at the reporting date, which is deemed to be their market value. Any gain or loss, whether realised or unrealised, is taken to the Statement of Financial Activities.

n) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

o) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

p) Creditors

Creditors and provisions are recognised where there is a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

q) Provisions

A provision is recognised in the balance sheet when the charity has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

r) Financial instruments

The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently recognised at amortised cost using the effective interest method.

22

Worcester YMCA

Notes to the financial statements

For the year ended 31 March 2025

1. Accounting policies (continued)

s) Operating leases

Rentals paid under operating leases are charged to the statement of financial activities as they fall due.

t) Pension costs

The company operates a defined contribution pension scheme for its employees. There are no further liabilities other than that already recognised in the SOFA.

u) Defined benefit pension scheme

Worcester YMCA participated in a multi-employer defined benefit pension plan for employees of YMCAs in England, Scotland and Wales, which was closed to new members and accruals on 30 April 2007. Due to insufficient information, the plan's actuary has advised that it is not possible to separately identify the assets and liabilities relating to Worcester YMCA.

As described in note 22 Worcester YMCA has a contractual obligation to make pension deficit payments of £9,642 pa over the period to April 2027, accordingly this is shown as a liability in these accounts. In addition, Worcester YMCA is required to contribute £2,968 pa (2024: 2,968) to the operating expenses of the Pension Plan and these costs are charged to the Statement of Comprehensive Income as made.

v) Accounting estimates and key judgements

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are depreciation, amortisation, deferred income and defined benefit pension scheme deficit provision as described in notes 1j, 1k, 1d and 1u respectively above.

2. Income from donations

Grants
Total income from donations		 2025
Total
£
-
-		 2024
Total
£
89,359
89,359

In the current and prior period all income from donations was unrestricted.

No government grants were received in the current year or prior year.

23

Worcester YMCA

Notes to the financial statements

For the year ended 31 March 2025

For the year ended 31 March 2025
3.
Income from charitable activities
2025
Total
£
General needs housing
88,767
In the current and prior period all income from charitable activities was unrestricted.		 2024
Total
£
77,499
4.
Income from other trading activities
Nursery income		 2025
Total
£
1,540,938		 2024
Total
£
1,089,702

In the current and prior period all income from other trading activities was unrestricted.

24

Worcester YMCA

Notes to the financial statements

For the year ended 31 March 2025

5. Total expenditure

Total expenditure
Staff costs (note 7)
Other staff costs
Premises costs
Vehicle costs
Other direct costs
Office expenses
Penalties
Repairs and maintenance
Depreciation and amortisation
Loan interest
Audit and accountancy fees
Pension deficit
Bad debt provision movement
Corporation tax
Sub-total
Allocation of support and governance costs
Total expenditure
Total governance costs were £43,164 (2024: £25,200)		 Raising funds -
cost of trading
subsidiaries
£
1,074,607
8,730
-
-
90,494
63,997
3,000
39,722
12,740
-
24,264
-
1,846
4,553
1,323,953
-
1,323,953		 Charitable
activities
£
14,610
-
39,593
601
-
-
-
-
-
-
-
-
-
-
54,804
147,397
202,201		 Support and
governance
costs
£
-
-
-
-
-
6,262
1,500
-
37,747
48,403
18,900
2,807
31,778
-
147,397
(147,397)
-		 2025 Total
£
1,089,217
8,730
39,593
601
90,494
70,259
4,500
39,722
50,487
48,403
43,164
2,807
33,624
4,553
1,526,154
-
1,526,154

25

Worcester YMCA

Notes to the financial statements

For the year ended 31 March 2025

5.
Total expenditure (continued)
Prior period comparative
Staff costs (note 7)
Other staff costs
Premises costs
Vehicle costs
Other direct costs
Office expenses
Repairs and maintenance
Depreciation and amortisation
Loan interest
Audit and accountancy fees
Pension deficit
Bad debt provision movement
Corporation tax
Sub-total
Allocation of support and governance costs
Total expenditure		 Raising funds -
cost of trading
subsidiaries
£
881,002
20,387
-
-
78,796
55,027
18,499
22,427
-
16,200
-
63
(400)
1,092,001
-
1,092,001		 Charitable
activities
£
102,525
-
31,408
764
106
-
-
-
-
-
-
-
-
134,803
274,885
409,688		 Support and
governance
costs
£
-
-
-
-
-
8,398
-
217,767
50,049
10,613
(28,898)
16,956
-
274,885
(274,885)
-		 2024 Total
£
983,527
20,387
31,408
764
78,902
63,425
18,499
240,194
50,049
26,813
(28,898)
17,019
(400)
1,501,689
-
1,501,689

26

Worcester YMCA

Notes to the financial statements

For the year ended 31 March 2025

6. Net movement in funds

This is stated after charging:

Depreciation
Amortisation
Operating lease payments
Trustees' remuneration
Trustees' reimbursed expenses
Auditors' examiner's remuneration (excluding VAT):
Statutory audit
Other services
Prior year under accrual		 2025
£
31,021
19,466
8,000
Nil
Nil
22,500
700
12,770		 2024
£
30,957
209,236
8,000
Nil
Nil
21,000
700
-

In common with other charities of our size and nature we use our auditors to assist with the preparation of the financial statements and to prepare and submit returns to the tax authorities.

7. Staff costs and numbers

Staff costs were as follows:

Salaries and wages
Social security costs
Pension costs		 2025
£
985,080
77,689
26,448
1,089,217		 2024
£
906,365
55,663
21,499
983,527

No employee earned more than £60,000 during the year or prior year.

The key management personnel of the charitable company comprise of staff employed by the parent charity only. Therefore, there are no key management personnel costs in the year or prior year.

Average headcount 2025
No.
55		 2024
No.
54

8. Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The subsidiary companies distribute any profits to the charity and therefore ordinarily no corporation tax is payable. During the current year one of the subsidiaries, First Class Nursery (Kidderminster) Limited incurred a tax charge of £4,553 (2024: £400 tax credit).

27

Worcester YMCA

Notes to the financial statements

For the year ended 31 March 2025

9. Intangible fixed assets

Intangible fixed assets
Cost
At 1 April 2024 & 31 March 2025
Amortisation
At 1 April 2024
Charge for the year
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024		 Group
Goodwill
£
1,087,428
(1,067,962)
(19,466)
(1,087,428)
-
19,466		 Charity
Goodwill
£
997,428
(977,962)
(19,466)
(997,428)
-
19,466

10. Tangible fixed assets

Group
£
Cost
At 1 April 2024
86,981
Additions in year
-
Disposals in year
(84,601)
At 31 March 2025
2,380
Depreciation
At 1 April 2024
(84,986)
Charge for the year
(357)
On disposal
84,601
At 31 March 2025
(742)
Net book value
At 31 March 2025
1,638
At 31 March 2024
1,995
Computer and
other
equipment		 Motor
vehicles
£
10,788
-
-
10,788
(10,788)
-
-
(10,788)
-
-		 Land and
buildings
£
1,251,800
139,640
-
1,391,440
(170,717)
(30,664)
-
(201,381)
1,190,059
1,081,083		 Total
£
1,349,569
139,640
(84,601)
1,404,608
(266,491)
(31,021)
84,601
(212,911)
1,191,697
1,083,078

Land and building additions includes £133,295 of assets under construction.

28

Worcester YMCA

Notes to the financial statements

For the year ended 31 March 2025

10. Tangible fixed assets (continued)

Charity
Cost
At 1 April 2024
Disposals in year
At 31 March 2025
Depreciation
At 1 April 2024
Charge for the year
On disposal
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024
Investments
COIF charities investment
Investment in subsidiaries
Market value at 31 March 2025
Investment in subsidiaries - charity only
Value at 1 April 2024
Gains / (losses)
Value at 31 March 2025		 Computer
and other
equipment
Motor
vehicles
£
£
5,596
10,788
(5,596)
-
-
10,788
(5,596)
(10,788)
-
-
5,596
-
-
(10,788)
-
-
-
-
2025
2024
£
£
690
690
-
-
690
690
The group		 Land and
buildings
Total
£
£
585,000
601,384
-
(5,596)
585,000
595,788
(102,375)
(118,759)
(18,281)
(18,281)
-
5,596
(120,656)
(131,444)
464,344
464,344
482,625
482,625
2025
2024
£
£
690
690
600,843
579,186
601,533
579,876
2025
2024
£
£
579,186
616,330
21,657
(37,144)
600,843
579,186
The charity		 Total
£
601,384
(5,596)
595,788
(118,759)
(18,281)
5,596
(131,444)
464,344
482,625
579,876
2024
£
616,330
(37,144)
579,186

11. Investments

29

Worcester YMCA

Notes to the financial statements

For the year ended 31 March 2025

12. Subsidiary undertakings

Little Treasures Limited

The charity owns 100% of the issued share capital of Little Treasures Limited, a company limited by shares incorporated in England and Wales (company number 04029930). Its net assets totalled £600,840 as at 31 March 2025 (2024: £604,381). Its profit for the year to 31 March 2025 was £151,402 (2024: £12,976).

The results below include a property held at revaluation and a revaluation reserve of £274,344 (2024: £279,551). At a group level the property has been restated to historic cost so that the group accounting treatment of recognising properties at cost is applied consistently.

Turnover
Cost of sales
Gross profit
Administrative expenses
Operating profit
Profit on ordinary activities
Corporation tax
Profit for financial year
Profits gift aided to the parent undertaking were £154,943 (2024: £29,638).
The aggregate of the assets, liabilities and funds was:
Assets
Liabilities
Funds		 2025
£
1,118,217
(820,171)
298,046
(146,644)
151,402
151,402
-
151,402
2025
£
1,370,554
(769,714)
600,840		 2024
£
792,372
(672,800)
119,572
(106,596)
12,976
12,976
-
12,976
2024
£
1,172,390
(568,009)
604,381

30

Worcester YMCA

Notes to the financial statements

For the year ended 31 March 2025

12. Subsidiary undertakings (continued)

First Class Nursery (Kidderminster) Limited

The charity also owns 100% of the issued share capital of First Class Nursery (Kidderminster) Limited, a company limited by shares incorporated in England and Wales (company number 08887253). Its net assets totalled £2 as at 31 March 2025 (2024: net liabilities, £25,196). Its profit for the year to 31 March 2025 was £60,711 (2024: loss £20,482).

Turnover
Cost of sales
Gross profit
Administrative expenses
Operating loss
Loss on ordinary activities
Corporation tax
Profit / (loss) for financial year
Profits gift aided to the parent undertaking were £35,513 (2024: £nil).
The aggregate of the assets, liabilities and funds was:
Assets
Liabilities
Funds		 2025
£
422,721
(310,070)
112,651
(47,722)
64,929
64,929
(4,218)
60,711
2025
£
944,262
(944,260)
2		 2024
£
297,329
(267,783)
29,546
(50,428)
(20,882)
(20,882)
400
(20,482)
2024
£
1,018,283
(1,043,479)
(25,196)

13. Parent charity

The parent charity's gross income and the results for the year are disclosed as follows:

Gross income
Results for the year		 2025
£
279,247
98,704		 2024
£
196,497
(250,336)

31

Worcester YMCA

Notes to the financial statements

For the year ended 31 March 2025

14. Debtors : amounts due within 1 year

Rental debtors
Other debtors
Corporation tax rebate due
Amounts owed by group undertakings
15.
Creditors : amounts due within 1 year
Bank loans and overdrafts
Trade creditors
Other taxation and social security
Accruals
Deferred income (see note 16)
Corporation tax payable
Other creditors
16.
Deferred income
At 1 April 2024
Deferred during the year
Released during the year
At 31 March 2025		 2025
2024
£
£
13,341
1,815
109,214
101,010
-
4
747,962
135,218
870,517
238,047
2025
2024
£
£
26,412
26,188
89,966
11,830
12,241
32,594
75,725
63,799
112,545
111,722
4,553
-
7,979
9,736
329,421
255,869
2025
2024
£
£
111,722
89,896
112,545
111,722
(111,722)
(89,896)
112,545
111,722
The group
The group
The group		 2025
2024
£
£
13,341
1,815
11,378
5,521
-
-
1,551,215
1,437,192
1,575,934
1,444,528
2025
2024
£
£
26,412
26,188
15,656
3,214
-
-
37,650
35,440
1,435
-
-
-
-
-
81,153
64,842
2025
2024
£
£
-
-
1,435
-
-
-
1,435
-
The charity
The charity
The charity		 2025
2024
£
£
13,341
1,815
11,378
5,521
-
-
1,551,215
1,437,192
1,575,934
1,444,528
2025
2024
£
£
26,412
26,188
15,656
3,214
-
-
37,650
35,440
1,435
-
-
-
-
-
81,153
64,842
2025
2024
£
£
-
-
1,435
-
-
-
1,435
-
The charity
The charity
The charity
-

Deferred income relates to nursery income invoiced in advance of the services being offered and rents received in advance.

32

Worcester YMCA

Notes to the financial statements

For the year ended 31 March 2025

17. Creditors : amounts falling due after 1 year

Bank loans and overdrafts
Analysis of debt maturity
Debt due after more than one year:
Repayable between one and two years
Repayable between two and five years
Repayable in five years or more		 2025
2024
£
£
716,021
738,997
2025
2024
£
£
24,355
21,714
82,456
74,475
609,210
642,808
716,021
738,997
The group
The group		 2025
2024
£
£
716,021
738,997
2025
2024
£
£
24,355
21,714
82,456
74,475
609,210
642,808
716,021
738,997
The charity
The charity		 2025
2024
£
£
716,021
738,997
2025
2024
£
£
24,355
21,714
82,456
74,475
609,210
642,808
716,021
738,997
The charity
The charity
738,997

There are two secured bank loans on the properties at 2 Stanley Road, Worcester, WR5 1BR and at Broomhall Grange, Norton Road, Broomhall, WR5 2PD. The loans from Unity Bank are charged at commercial rates of 1.5% above Bank of England base rate and are repayable over 25 years. The loans are secured with fixed charges over the assets of the charity, its parent, Worcestershire YMCA, and its subsidiary, Little Treasures Limited.

In the prior year only the Charity had failed to meet its financial covenant under the loans in respect of the EBITDA measure. Based on communications and discussions with the bank and the understanding that sufficient funds are held by Worcestershire YMCA Limited, the ultimate parent charitable company, that could be provided to the Charity to enable it to satisfy the EBITDA measure, there is no indication that any action, beyond the issue of a reservation of rights letter, will take place. The carrying amount of the loans that were at 31 March 2024 was £765,185. The current year carrying value of these loans is £742,433.

18. Analysis of net assets between funds

All assets and liabilities are allocated to unrestricted funds in both the current and prior year.

33

Worcester YMCA

Notes to the financial statements

For the year ended 31 March 2025

19. Group movements in funds

Group movements in funds
General funds
Pension reserve
Total unrestricted funds
Total funds		 At 1 April
2024
£
1,469,829
(27,622)
1,442,207
1,442,207		 Income
£
1,629,729
-
1,629,729
1,629,729		 £
£
(1,535,003)
1,564,555
8,849
(18,773)
103,575
1,545,782
103,575
1,545,782
At 31 March
2025
Expenditure
1,545,782
1,545,782

The pension reserve reflects the balance owed to the YMCA Pension Plan as at the year end date and any in year movements, as detailed in note 21.

Prior year comparative

General funds
Pension reserve
Total unrestricted funds
Total funds		 At 1 April
2023
£
1,759,352
(72,016)
1,687,336
1,687,336		 Income
£
1,256,560
-
1,256,560
1,256,560		 £
(1,546,083)
44,394
(1,501,689)
(1,501,689)
Expenditure		 £
1,469,829
(27,622)
At 31 March
2024
1,442,207
1,442,207

20. Analysis of changes in net debt

Analysis of changes in net debt
Cash
Loans falling due within 1 year
Loans falling due after 1 year		 At 1 April
2024
1,123,414
(26,188)
(738,997)
358,229		 (576,321)
547,093
(224)
(26,412)
22,976
(716,021)
(553,569)
(195,340)
Cash flows
At 31 March
2025
(195,340)

34

Worcester YMCA

Notes to the financial statements

Notes to the financial statements
For the year ended 31 March 2025
21. Provisions for liabilities: defined benefit pension scheme deficit contribution liability
Group and charity
2025
£
Present value of provision
18,773
Reconciliation of opening and closing provisions
2025
£
Provision at the start of the year
27,622
Deficit contributions paid
(8,937)
Unwinding of the discount factor (interest expense)
916
Impact of change in the rate of discount
(828)
Impact of reduction to repayment period
-
Provision at the end of the year
18,773
Assumptions
2025
£
Rate of discount
5.60%		 2024
£
27,622
2024
£
72,016
(12,528)
3,457
-
(35,323)
27,622
2024
£
4.80%

The discount rates shown above are the equivalent single discount rates which, when used to discount future recovery plan contributions due, would give the same results as using the pwc pension accounting trends median figure to discount the same recovery plan contributions.

Worcester YMCA participated in a contributory pension plan providing defined benefits based on final pensionable pay for employees of YMCAs in England, Scotland and Wales. The assets of the YMCA Pension Plan are held separately from those of Worcester YMCA and at the year end these were invested in the Mercer Dynamic De-risking Solution, 65% matching portfolio and 35% in the growth portfolio and Schroder (property units only).

The most recent completed three year valuation was as at 1 May 2023. The assumptions used which have the most significant effect on the results of the valuation are those relating to the assumed rates of return on assets of 4.56%, the increase in pensions in payment of 3.18% (for RPI capped at 5% p.a.), and the average life expectancy from normal retirement age (of 65) for a current male pensioner of 21.5 years, female 24.0 years, and 23.1 years for a male pensioner, female 25.7 years, retiring in 20 years’ time. The result of the valuation showed that the actuarial value of the assets was £103.1m, which represented 92% of the benefits that had accrued to members.

The Pension Plan was closed to new members and future service accrual with effect from 30 April 2007. With the removal of the salary linkage for benefits all employed deferred members became deferred members as from 1 May 2011.

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Worcester YMCA

Notes to the financial statements

For the year ended 31 March 2025

21. Provisions for liabilities: defined benefit pension scheme deficit contribution liability (continued) The valuation prepared as at 1 May 2023 showed that the YMCA Pension Plan had a deficit of £9.1 million. Worcester YMCA has been advised that it will need to make monthly contributions of £9,642 from 1 May 2024. This amount is based on the current actuarial assumptions (as outlined above) and may vary in the future as a result of actual performance of the Pension Plan. Agreed future deficit contributions have been discounted using a rate of 5.6% (2024: 4.8%). The current recovery period is 3 years commencing 1 May 2024.

22. Operating lease commitments

The group and charity had operating leases at the year end with total future minimum lease payments as follows:

Amount falling due:
Within 1 year
Within 1 - 5 years
Over 5 years
Financial instruments at fair value
Financial assets measured at fair value		 2025
2024
£
£
8,000
8,000
32,000
32,000
157,333
165,333
197,333
205,333
2025
2024
£
£
690
690
The group
The group		 2025
2024
£
£
8,000
8,000
32,000
32,000
157,333
165,333
197,333
205,333
2025
2024
£
£
601,533
579,876
The charity
The charity

23. Financial instruments at fair value

Financial assets measured at fair value comprise listed investments and investments in subsidiaries.

24. Related party transactions and ultimate controlling entity

The group's ultimate parent undertaking and controlling party is the Worcestershire YMCA, a registered charity in England and Wales (number: 516872) and company limited by guarantee (number: 01944516). Copies of the consolidated financial statements are available from the Charity Commission. The balance owing from the controlling party at 31 March 2025 was £747,962 (2024: £135,218). Transactions between the entities during the year have not been disclosed in accordance with section 33 of FRS 102. All trustees of the parent undertaking are trustees in common with the charity.

The charitable company has a wholly owned subsidiary undertaking called Little Treasures Limited, a registered company in England and Wales (number: 04029930). The company gifts available taxable profits to its parent undertaking. The balance owing to the charity at 31 March 2025 was £439,197 (2024: £313,893). Transactions between the entities during the year have not been disclosed in accordance with section 33 of FRS 102.

36

Worcester YMCA

Notes to the financial statements

For the year ended 31 March 2025

24. Related party transactions and ultimate controlling entity (continued)

The charitable company has a wholly owned subsidiary undertaking called First Class Nursery (Kidderminster) Limited, a registered company in England and Wales (number: 08887253). The company gifts available taxable profits to its parent undertaking. The balance owing to the charity at 31 March 2025 was £926,843 (2024: £959,503). Transactions between the entities during the year have not been disclosed in accordance with section 33 of FRS 102.

Lindsay Sartori, trustee, is also a director of both subsidiary undertakings.

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