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← Animals In Distress (Torbay And Westcountry)

2024-12-31-accounts

(Torbay and Westcountry)

(A Company Limited by Guarantee)

Trustees' Annual Report and Financial Statements

For the year ended 31 December 2024

Registered Charity Number 1105487 Company Number 05171505

ANIMALS IN DISTRESS (TORBAY & WESTCOUNTRY)

(A Company Limited by Guarantee)

CONTENTS

Page
Trustees' Report 1- 24
Independent Auditors' Report 25- 28
Statement of Financial Activities 29 - 30
Balance Sheet 31
Statement of Cash Flows 32
Notes to the Financial Statements 33- 45

ANIMALS IN DISTRESS (TORBAY & WESTCOUNTRY)

(A Company Limited by Guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

The Trustees are pleased to present their annual Trustees’ report together with the financial statements of the Charity for the year ending 31 December 2024 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

Trustees:

The Trustees of the Charity who served during the year were:

Geraldine Dix (Chair of Trustees) Amy Cross-Webber Alison Truscott Chris Paradine Jo Smith

Company Secretary and Chief Executive Officer:

Neil Thomas

Principal Address and Registered Office:

Biltor Edgelands Lane Ipplepen Newton Abbot Devon. TQ12 5UF

Registered Charity No: 1105487

Registered Company Number: 05171505

Professional Advisers:

Auditors: PKF Francis Clark Sigma House Oak View Close Torquay Devon TQ2 7FF Solicitors: Kitson Boyce LLP Minerva House Orchard Way, Edginswell Park Torquay Devon TQ2 7FA Bankers: Lloyds Bank Plc 2 Palace Avenue Paignton Devon TQ3 3ER

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ANIMALS IN DISTRESS (TORBAY & WESTCOUNTRY)

(A Company Limited by Guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

1.0 STRUCTURE, GOVERNANCE AND MANAGEMENT

1.1 Legal Status

Animals in Distress (Torbay and Westcountry) is a company limited by guarantee (company number 5171505) and is registered as a charity (number 1105487) with the Charity Commission.

1.2 Governing Document

Animals in Distress (Torbay and Westcountry) is governed by its Memorandum and Articles of Association dated 4 July 2004.

There is one class of member. The maximum number of members is 20 or such numbers as the members decide. The first members were the subscribers to the Memorandum; further members are such individuals or organisations as appointed by the Trustees. There are currently 5 members, each of whom is liable to contribute £10 in the event of the Charity winding up.

1.3 Appointment of Trustees

As set out in the Articles of Association, the first Trustees were the subscribers to the Memorandum. Additional Trustees may be appointed by the Charity in a general meeting or by the other Trustees. A Trustee must be aged 18 or over, must be a member of the Charity and must not be disqualified by virtue of provisions of the Charities or Companies Acts. The number of Trustees may not be less than three, but is not subject to a maximum.

At the Annual General Meeting, one third of the Trustees must retire. The Trustees to retire shall be those who have been longest in office since their last appointment.

1.4 Trustee Induction and Training

New Trustees undergo an induction to brief them on their legal obligations under Charity and Company law, the content of the Memorandum and Articles of Association, governance, the Committee and the decision making process, the business plan and the recent financial performance of the Charity. During their induction, the new Trustee/s will spend time with the Chief Executive and with the Rescue Centre Management in order to familiarise themselves with the day to day running of the Charity. Ongoing training is given as appropriate to their position.

1.5 Organisation Structure

The Charity is managed through the following areas:

1.6 Governance and Management

The Board of Trustees administers the Charity and meets every three months. A Finance Committee was established by the Board to maintain an overview of and provide advice to it, regarding the financial affairs of the Charity. The Finance Committee meets every three months as part of the main Board meeting and attended by at least three Trustees and the CEO.

The Chief Executive is appointed by the Trustees to manage the day-to-day operations of the Charity. To facilitate effective operating, the Chief Executive has written terms of delegation approved by the Trustees for operational matters including finance and employment.

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ANIMALS IN DISTRESS (TORBAY & WESTCOUNTRY)

(A Company Limited by Guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

1.7 Remuneration of Key Management Personnel

The Charity aims to provide a reward package that is competitive enough to attract and retain high calibre staff who wish to be part of the Charity’s work. The remuneration of key management personnel is reviewed annually by the Trustees based on workload, responsibilities and performance for the previous year. Salaries are also benchmarked against similar positions both locally and nationally.

1.8 Related Parties

The “new” Charity, Animals in Distress (Torbay and Westcountry) (charity number 1105487) incorporated the tangible and intangible assets of the original “old” Charity, Animals in Distress (Torbay and Westcountry) (charity number 900234) on 31 October 2004. The only excluded assets were future bequests, cash at bank and the benefit of any insurance claims.

1.9 Risk Management

The Trustees actively review the major risks the Charity faces on a regular basis and believe that maintaining reserves at current levels, combined with an annual review of the controls over key financial systems, will provide sufficient resources in the event of adverse conditions. A comprehensive risk analysis has been completed which has identified control and monitoring procedures to minimise any risk to the Charity and any impact they may have. The results are periodically reviewed.

2.0 STRATEGIC REPORT

The following sections comprise the Charity’s strategic report for the year.

2.1 Objectives and Activities

Animals in Distress exists to alleviate pain, suffering and distress in animals as well as to promote animal welfare practices and responsible pet ownership across Teignbridge, Torbay and South Hams.

Furthermore,

Our care is open to all regardless of an individuals’ background or circumstances; the welfare of the animal is the primary concern of the Charity, not where the animal comes from or is going to. This includes the fostering of animals, when an animal has a chronic health issue requiring ongoing veterinary treatment which the Charity pays for, regardless of the individual’s financial circumstances.

The activities carried out during the course of the year (as set out in the following section) demonstrate the level of Trustee and management commitment in ensuring that the Charity delivers real and tangible benefit to the public in all of its operations and thereby meets the public benefit requirements as set out by the Charity Commission in both spirit and word.

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ANIMALS IN DISTRESS (TORBAY & WESTCOUNTRY)

(A Company Limited by Guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

2.2 Achievements and Performance

2.2.1 Overview

As we reflect on the past year at Animals in Distress (Torbay and Westcountry), we are proud to share the positive impact we have made on the lives of animals in need across our local communities. Thanks to the dedication of our staff, volunteers, supporters, and partners, we have continued to provide vital care, shelter, and new beginnings for hundreds of abandoned, neglected, and homeless animals.

Our mission in action has continued throughout the year, with our Rescue Centre remaining a safe haven for dogs, cats, rabbits and guinea pigs and occasionally more. Each one has received the medical attention, love and rehabilitation needed to give them the best possible chance of a forever home.

Our incredible volunteers remain at the heart of everything we do, giving countless hours to support daily care routines, fundraising events, charity shops, and more. We are continually inspired by the compassion and commitment shown by everyone involved.

Despite the ongoing challenges facing the charity sector, we have remained financially stable thanks to the generosity of our supporters. Fundraising events, legacy donations, regular giving, and our charity shops have all played a crucial role in sustaining our operations. Every penny has been carefully used to maximise impact and meet the growing demand for our services.

We sincerely thank everyone who has supported us this year. Whether adopted, donated, volunteered, or simply shared our story, you’ve helped us make a difference. Together, we are giving animals the second chance they deserve.

2.2.2 A tough time for charities

Charities have been having a tough time with increasing financial pressures initially from the pandemic, subsequent high inflation and the ongoing cost-of-living crisis. Now add to that the increase in employer National Insurance Contributions and National Living Wages announced in the Chancellor’s Autumn Budget, the outlook is certainly not all sunshine and rainbows.

COVID-19 hit both supply and demand with deep and likely, long-lasting consequences for the global economy. The IMF described the “Great Lockdown” as the worst recession since the Great Depression. Along with the rest of the world, charities were put under pressure by the pandemic. Research from the Charity Commission shows that over 90% of charities were negatively affected by the pandemic, including loss of income, increased demand for services and a shortage of volunteers.

No sooner had global growth surpassed its pre-pandemic level, economic momentum began to wane, inflation rocketed and interest rates jumped. Add to that the geographical uncertainty and the UkraineRussia war to make things even more difficult. The cost-of-living crisis has had a significant impact on the not-for-profit sector with increased demand for services, increased running costs and lower donations. Research from the Charities Aid Foundation shows that more than 3.2m people said they reduced or stopped a regular payment to charity because of increasing living costs.

The Government’s Autumn 2024 Budget announced an increase in employer National Insurance Contributions (both the increase in rate and reduction in threshold) and increase in minimum wages. These are already having a direct impact on charities from April 2025, increasing cost pressures further. On a positive side, strengthening existing charity tax rules aim to help prevent abuse. Also, changes to inheritance tax may mean the inheritance tax incentives in place for individuals who choose to leave a legacy gift to a charity could become more impactful.

The Autumn Budget was the first for Keir Starmer’s new government and the first by a Labour government in 14 years. It is clear that it is a challenging one for UK charities and rising costs will cause significant pressure, certainly in the short-term.

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ANIMALS IN DISTRESS (TORBAY & WESTCOUNTRY)

(A Company Limited by Guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

There were a number of key announcements:

High costs are here to stay

A clear takeaway from the Budget is that the high costs of recent years are not going away anytime soon. Charities have been battling these for a while with the cost-of-living crisis and war in Ukraine driving up energy and everyday costs. These announcements made by Rachel Reeves confirm that the end is not yet in sight. In fact, the Budget will increase the operational costs for charities over the shortterm. Titled ‘ Fixing the Foundations to Deliver Change’, the Budget will aim to address the alleged ‘blackhole’ in the public finances, with headline policies centring on raising tax and recouping money for public services. This will impact the charity sector and the most notable policies are:

These changes are some of the single largest tax-raising measures in British history, with the increased employer NI contributions projected to raise £20 billion in tax revenue.

It is important to note that there are measures in place to mitigate the impact of these increases, including an increase of the Employment Allowance (open to employers with NI liability of less than £100,000) from £5,000 to £10,500. Organisations of any size can also now claim for Employment Allowance, a measure which could support organisations that come into financial difficulty because of the rise. We always claim the Employment Allowance and have already done so for the tax year 2025/2026.

Nevertheless, the National Council for Voluntary Organisations (NCVO) estimates that the rising cost of employer NI will cost the charity sector £1.4 billion per year alone and The Office for Budget Responsibility predicts the average employer will pay an increase of more than £26,000 each year (equating to £800 per employee), with the changes having come into effect from April 2025. Animals in Distress is a significant sized employer for the area and we estimate that we will be paying nearly £52,000 extra in employer’s National Insurance for the forthcoming tax year.

Lower levels of tax relief

Alongside increased operational costs, the Budget also revealed that business rates relief, introduced during the pandemic to protect cultural organisations, will be renewed but decreased from 75% to 40%. In short, increased tax and lowered tax relief means that charitable organisations are going to be faced with higher operational and staff bills this year, especially like Animals in Distress, as we own and rent a number of buildings.

A challenging landscape for fundraising

Corporate fundraising: It is not just the charity sector that will be hit hard by raising taxation, with businesses across the country expecting to feel the effect. Coupled with increases to the National Living Wage and business rates, these increased costs could reduce the appetite for sponsorship of charitable organisations. Indeed, the British Retail Consortium (BRC) predicts that retailers will pay an additional £2.3 billion in National Insurance, £376 million on the minimum wage and £140 million on business rates, highlighting the scale of the changes.

Individual giving: Increased costs for employers could also have a considerable impact on individual giving, with businesses potentially slowing wage growth and hiring whilst they get to grips with higher operational and staff costs. This could lead to stagnant wage growth over the coming months, impacting charitable giving, as households may seek to act more conservatively to make their money go further. The wealthiest in society will also face increased taxes, something which may impact the generosity of major donors. These taxes include: increased stamp duty for second homes, air passenger duty, and the abolition of the non-domicile tax status.

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ANIMALS IN DISTRESS (TORBAY & WESTCOUNTRY)

(A Company Limited by Guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

Legacy fundraising: From a fundraising perspective, some commentators see the Budget as bringing positive changes. An increase in capital gains tax from April 2025 and the maintenance of tax relief for charitable giving, which sees inheritance tax liability fall from 40% to 36% when an individual bequeaths 10% or more of their net estate to charity, has led some to believe there may be an uptick in legacy giving as individuals make charitable donations to mitigate the tax impact on their estate. This could bring much needed funding to the sector, although other commentators are more sceptical and the Charity Finance Group warns the impact of changes relating to inheritance tax “will be marginal at best” .

It is clear that charities will continue to face a challenging fundraising landscape and it means that we will need to think carefully about how we convey the importance and value of our work to potential donors.

A look to the future

Whilst the immediate challenges are significant, the Autumn Budget did bring some reasons to be optimistic, with policies showing a clear intention to invest in the future and support the sector. The Budget has made provision for maintaining research and development budgets and pledges to invest in programmes to upskill and support the sector. As such, whilst the headlines from the Budget are rightly focussed on the increased costs charities will face, these policies offer hope for the future and demonstrate a commitment to the sector from the government.

Whilst there are positive signs of investment and a desire to work more closely with the charity sector over the long-term, the headlines from the Autumn Budget are challenging ones for the sector. As with most charities, we are going to need to contend with rising operational costs. It is inevitable that we will do so without increased funding. For many charities, this will pose significant problems and it is essential that, in the coming months and years, support is there for charities that need it.

2.2.3 Pet ownership in the UK and what it means today

In the UK today, pet ownership is not just about companionship; it's a widespread lifestyle choice, particularly among younger generations. While dogs and cats remain popular, there's a growing trend towards alternative pets like reptiles, domestic fowl, and smaller animals suitable for urban living. However, economic pressures are also impacting pet ownership, with some households reducing spending on pet care or even rehoming pets due to financial strain.

Increased popularity and trends

Economic and Social Pressures

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ANIMALS IN DISTRESS (TORBAY & WESTCOUNTRY)

(A Company Limited by Guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

Pet ownership in the UK is a complex and evolving phenomenon, with both positive and negative aspects. While pets provide companionship, emotional support, and contribute to a sense of wellbeing, the rising cost of living and economic pressures are posing challenges for many pet owners, potentially leading to reduced care or relinquishment of pets.

2.2.4 The Rescue Centre

The main challenge and concern for Animals in Distress, certainly in the medium term, continues to be fundraising and the uncertainty around income. Animals in Distress is typical of most other animal charities in that an important part of our income comes from legacies and those legacies are often dependent upon the sale of property to liquidate the bequest. The property market had been buoyant for a few years which had helped us realise the level of legacy income far more than we could have hoped for, however, 2023 and 2024 saw the property market struggling and house prices fall, predominantly because of the squeeze on household finances, caused mainly by the cost of living crisis. It means that the future for legacies linked to property sales is potentially less certain than it was.

We continued with our business continuity planning in 2024 by keeping animal numbers at the Rescue Centre to a level where we could comfortably cope. This remained crucial for many reasons, primarily for the wellbeing of the animals, as issues such as separation anxiety meant that some animals stayed with us longer. Secondly, working with a reduced staffing level, we still needed to deliver the same exceptional standards of care and thirdly, to ensure we lived within our means.

There continues to be an increased demand for our services post-COVID, including emergency admissions for all sorts of reasons including illness, bereavement, owners losing their jobs and/or no longer able to afford to look after their animals, the anticipated increases in approaches to take on more animals has certainly borne out and that continues to be the case.

During 2024, we continued to focus on leanness as a matter of approach, reduce our costs, strip out any waste and drive efficiencies. The challenge with a ‘lean’ approach is that it could leave the Charity less resilient. We looked for further ways of working better and more compatible with the changing world we now live in, including placing a greater reliance on digital customer journeys and experiences.

As previously reported, after careful consideration about how we can best serve our local community and the animals in our care, admissions and rehoming of the animals continues to be by appointment only, with the Rescue Centre animal departments remaining closed to general public access. Over the last five years, the animals in our care have been used to the relative calm of being closed to the public and as a result, we have seen a marked decrease in the stress levels exhibited by the animals. We remain mindful that a sudden influx of daily visitors would cause certain welfare issues. We love having visitors to the Rescue Centre and our Reception is open daily, however, not only are there the welfare issues to consider, we now have fewer staff available each day to attend to a steady stream of people.

Like most charities, it has been a hugely challenging period for Animals in Distress and in the current financial climate we continue to be forced to operate with smaller teams than in years gone by. The priority for our Rescue Centre teams remains of course, looking after the animals we care for. We will continue to review this position periodically and may decide to re-open to general public access on a restricted basis at some point in the future but there are no current plans to do so whilst we continue to navigate through these continued difficult times.

The sustainability of the sector continues to be tested with the ongoing cost of living crisis and we know that there are many challenges ahead but we remain resolutely determined to ensure Animals in Distress and the Rescue Centre remain as relevant as it always has been and continues to serve the community in a trusted and transparent way. It remains too early to know for sure what the long-term impact of COVID, Brexit, the Ukraine war, the cost of living crisis, high inflation, the Autumn Budget and the recent global tariffs will have on the Not for Profit sector but, in the short term, that impact is certainly being felt. We continue to hope that the global catastrophes will provide a catalyst for altruism that society desperately needs.

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ANIMALS IN DISTRESS (TORBAY & WESTCOUNTRY)

(A Company Limited by Guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

2.2.5 Government Business Support

The Energy Bills Discount Scheme (EBDS) ran from 1[st] April 2023 to 31[st] March 2024 and offered a per-unit discount on electricity and gas bills for non-domestic customers, replacing the Energy Bill Relief Scheme (EBRS). The EBDS aimed to help businesses and other non-domestic customers struggling with rising energy costs by providing a discount on their unit rates for electricity and gas. The scheme applied to non-domestic customers with contracts entered into since 1[st] December 2021, including fixedprice contracts, variable price contracts and flexible price contracts. The Charity benefitted from this additional help which has been vital, as we have seen our energy costs at all of our premises rocket over the last three years. Our electricity bill for a winter month used to be around £4k, for the same month in 2024 we paid in excess of £8.5k and that was even with the extra Government help. Energy costs remain a key concern for us for the foreseeable future.

2.2.6 Retail Overview and Operation

In 2024, reports suggested that charity retail indicated a trend of declining profits despite increased sales, primarily due to rising operational costs including the increased minimum wage, leading to concerns about the sustainability of charity shop operations, with many reporting a drop in profitability compared to previous years; however, there is still a strong customer base. But, we certainly noticed a decrease in footfall on the High Streets, meaning that we had to work harder to ensure our retail operation delivered excellence in the instore customer journey and best practice.

There is a growing number of consumers who are turning to charity shops instead of traditional retail stores, driven by a desire to shop more sustainably and save money. According to the 2024 Charity Shops survey conducted by Civil Society Media, this shift is reshaping the retail landscape, with charity shops enjoying a surge in popularity. It’s not just in-store sales benefiting from this trend.

The Charity Retail Association’s latest Quarter Market Analysis report highlights a 21.2% rise in online sales for charity shops, reflecting their increasing appeal across all shopping channels. The main areas of concern in 2024 were:

With spiraling costs that all charities are suffering from, the requirement to improve income from retail has never been more important. In order to grow sales and profits, we focused on:

The British Retail Consortium (BRC) has predicted that the Treasury's hike to employer NICs will cost the retail sector £2.3billion. Research by the British Chambers of Commerce showed that more than half of companies planned to raise prices by early April. A survey of more than 4,800 firms found that 55% expect prices to increase in the next three months, up from 39% in a similar poll conducted in the latter half of 2024.Three-quarters of companies cited the cost of employing people as their primary financial pressure. The Centre for Retail Research (CRR) has also warned that around 17,350 retail sites are expected to shut down this year. It comes on the back of a tough 2024 when 13,000 shops closed their doors for good, already a 28% increase on the previous year.

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ANIMALS IN DISTRESS (TORBAY & WESTCOUNTRY)

(A Company Limited by Guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

Professor Joshua Bamfield, director of the CRR said: "The results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they are still disconcerting, with worse set to come in 2025”. Professor Bamfield has also warned of a bleak outlook for 2025, predicting that as many as 202,000 jobs could be lost in the sector. "By increasing both the costs of running stores and the costs on each consumer's household it is highly likely that we will see retail job losses eclipse the height of the pandemic in 2020”.

Our charity shops remain incredibly important to our shoppers as they look for affordable shopping choices to help combat the effects of the cost-of-living crisis. We continue to work hard to provide our customers with the best shopping experiences that meet their needs. The main reason for our retail portfolio is to generate profit/unrestricted income that the Charity can use to help fund the work we do at the Rescue Centre and we must never lose sight of that.

The key for Animals in Distress is to ensure that we align our individual charity shops to what the local customers want. This requires a clear understanding of local trading patterns and the right stock package to support the right shop format, with the correct use of our retail space, pricing of donations based upon science rather than judgement to ensure that the ideal customer shopping experience is delivered. We are acutely aware that simply replicating the standard charity retail format and keeping the same retail offer is less likely to be as successful in the future. One solution is the differentiation of style of our charity shops as this is critically important to meet the local customer requirements now and in the future.

To address this changing environment and to take advantage of the market conditions there is a growing differentiation in high street strategies between charity retail shops. Whilst in the past most charity shops were similar in style, today there is a growing trend towards differentiation, our Totnes and Paignton shops are testament to this. Apart from a growing trend towards creative and sometimes unique charity shop styles, an increasing number of charities are upgrading their shops and the quality of shop fits. We have been gradually upgrading the fixtures and fittings in several of our shops. We believe that a well-designed and functional retail space can significantly improve the customer experience. Quality shop fitting involves creating an attractive and comfortable environment that is easy to navigate, with clear signage and ample space for our customers to move around in.

Last year we reported on a programme of significant improvements to the appearance of our Paignton Outlet shop including the levelling and tarmacking the forecourt, line-marking the parking area, new illuminated fascia signage and monolith signage. The staff and volunteers continue to receive multiple compliments from customers about the improvements and it has made a significant difference to the footfall, trade and donations. Daily takings remain significantly improved and the overall shopping experience has been enhanced. We are justly proud of what has been achieved at the Outlet.

In the summer of 2024, we explored the possibility of renting a retail unit in the Victoria Street pedestrian area of Paignton to add to our retail portfolio. The property was to be vacated by Clintons in August and we were subsequently advised that the original buyer pulled out due to financial reasons, affording us the opportunity to purchase it. After much discussion and careful consideration, it was decided that it was in the interests of the Charity to purchase the building and in September 2024, we made an offer of £148k against the ‘for sale’ price of £175k, which we were pleased, was accepted. The money to be buy the property was funded from savings/reserves and from a maturing fixed term deposit savings. We had a limited building survey undertaken and that identified roof and electrical issues which we were already aware of. The upper floors are just shells which we may be able to turn into accommodation to generate rental income in time, subject funds and the relevant planning permission. After a protracted conveyancing process, we exchanged and completed on the purchase in mid-February 2025.

Safeguarding the future of our retail operation is important for our future income and by owning rather renting, in time, it will make the shop far more profitable, and it is an investment for the charity. Purchasing the property does not impact on our plans to eventually fund the refurbishment of the kennels. There are no plans at this time to close any of our shops, in favour of the new one. It is going to take time to get all the necessary work done, fit the shop out, recruit staff and volunteers etc. but if all goes to plan, we hope to be in a position to open the new statement shop sometime in the autumn of 2025.

9

ANIMALS IN DISTRESS (TORBAY & WESTCOUNTRY)

(A Company Limited by Guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

It is a sad indictment of our times that in 2024, shoplifting surged in the UK reaching record levels and causing significant losses for retailers and impacting shop workers. We certainly experienced a noticeable increase. Police recorded 516,971 shoplifting incidents in England and Wales in 2024, marking a 20% increase from the previous year and the highest since current records began in 2003. This rise has been fueled by factors like the cost of living crisis and increased brazenness of thieves, leading to more aggressive and violent incidents.

Shoplifting offences reported by police in England and Wales have reached a 20-year high, with a 29% increase in reported incidents. Retail workers are facing escalating levels of violence and abuse during theft incidents, with some incidents involving weapons. Retailers are experiencing significant losses due to theft, with the British Retail Consortium estimating a loss of £1.8 billion annually, impacting profitability and potentially leading to higher prices for consumers.

The cost of living crisis, increased poverty, and a lack of police presence have been cited as contributing factors to the rise in shoplifting. Police attendance at theft incidents has been low, leading to a feeling of impunity among shoplifters. The rise in shoplifting is impacting the safety and wellbeing of shop workers, and the wider community, with concerns about the spread of violence and the potential for more serious crimes. The Government and retailers are taking steps to address the issue, including partnerships with police, increased security measures, and efforts to tackle organised crime gangs. The safety of our staff, volunteers and customers remains our priority.

2.2.7 Rescue Centre Improvements

During the year, we continued our rolling programme of improvements to the facilities at our Rescue Centre in Ipplepen. Although no major projects were undertaken in 2024, we still maintained facilities where possible, in order to continue to provide a safe working environment for our staff and volunteers, excellent accommodation for the animals and to ensure that the site remained presentable at all times.

2.2.8 Adoption Fees

Our adoption fees remain broadly in line with other charities, both locally and nationally. At the start of each year, we apply a modest increase to the animal adoption fees which goes someway to offset some of the veterinary costs that we incur to give the animals the very best treatment and care. It generally costs the Charity far more to look after and treat each animal than the adoption fee covers. Occasionally, we charge a higher adoption fee for certain breeds and this additional income, ensures that we can help more animals that come into our care. In the face of rising costs, we applied an increase to our adoption fees for certain animals from the start of 2024 to help mitigate the situation.

When an adopter rehomes an animal from Animals in Distress, they take home a pet which has been fully assessed by our expert animal welfare staff, as well as our veterinary surgeon. Every pet at the Rescue Centre is examined by a vet, vaccinated, microchipped, neutered, wormed and flea treated (where appropriate for their species) and given any necessary treatments and where appropriate given a training plan designed to meet their specific needs.

2.2.9 Key Statistics

In 2024, we admitted 392 animals (389 in 2023) to the Rescue Centre (84 dogs, 193 cats/kittens, 29 rabbits and 86 guinea pigs) and rehomed 379 animals (348 in 2023) from the Rescue Centre (78 dogs, 197 cats/kittens, 32 rabbits and 72 guinea pigs). This represented just over a 1% increase in admissions and nearly 9% increase in rehoming compared to 2023. Finance and staff levels permitting, it is our aim to gradually increase admissions and whenever possible rehoming year on year.

We continued to work with and develop the Open Paw Programme in the kennels, meaning that we were able to help many dogs find their forever homes. Open Paw is a programme specifically developed for dogs and cats in rescue centres, designed to provide animals with the enrichment, training and social skills they will need to make them more rehomeable, and to help them successfully settle into life in their new homes.

10

ANIMALS IN DISTRESS (TORBAY & WESTCOUNTRY)

(A Company Limited by Guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

During 2024, Animals in Distress continued to assist the local Cats Protection by taking a number of pregnant queens, cats and kittens and the RSPCA by taking in several dogs, rabbits and guinea pigs. We will always do our best to help out other animal charities, both locally and nationally whenever there is a need and we have space.

Animals in Distress continues to ensure that all animals admitted and cared for at the Rescue Centre are healthy and receive all the necessary veterinary care that they need. The reduction in the number of animals on site during the pandemic resulted in fewer treatments required and a reduction in associated costs but this increased last year, as, mentioned before, more and more animals are coming into us needing veterinary care, sometimes this is extensive in nature.

In 2024, a total of 3,707 (3,475 in 2023) consultations and combined treatments were administered (vaccinations, flea and worm treatments etc.) including operations performed (neutering, orthopaedic etc.). This represented a 6.7% increase compared to the previous year. Whenever possible, the vast majority of treatments and operations continue to be undertaken on site at the Rescue Centre. Total veterinary costs which include ancillary costs (i.e. lab fees, medical gas, medication, equipment etc.) were £94,881 (£95,343 in 2023). This represented a very slight decrease in costs compared to the previous year.

We continue to benefit from being able to purchase discounted veterinary medicines through MWI Animal Health (AmerisourceBergen) which is a conglomeration of a best-in-class wholesale distributor Centaur Services, a practice management software innovator Vet Space, and two buying groups with relationships across the industry, St. Francis Group and Vetswest. We also purchase medicines through Veenak Veterinary Supplies who are a leading supplier that specialises in supplying human medicines at highly competitive prices. They have been serving the animal healthcare industry for several years, providing high quality products to veterinary practices and offer product solutions to cater for veterinary needs.

2.2.10 Veterinary Contract

Our veterinary provision at the Rescue Centre continues to be provided by Quarry House Vets, whose main practice is in Torquay. The Charity has maintained a good working relationship with this independent practice for over a decade now and our aim and requirement is the same as it always has been, to ensure that they provide the best and most up to date veterinary care for our animals. We will consider undertaking a retendering exercise for the contract when we feel that the time is right, however, we will continue to utilise the services of Quarry House as we are happy that they meet our requirements at this time.

The UK's Competition and Markets Authority (CMA) launched a formal market investigation into the veterinary services market for household pets in May 2024, following an initial review and consultation, to address concerns about vet costs and transparency. Based on the evidence so far, the CMA’s key concerns remain the same as they outlined last year and they expect to use the market investigation to further explore whether:

In 2013, only 10% of vet practices in the UK were owned by large corporate groups, now that figure stands at 60%. Bills for pet owners have risen as corporate ownership has increased, by more than 60% between 2015 and 2023, figures from the Competition and Markets Authority (CMA) show. This is almost double the rate of inflation or the increase in vet salaries over that time.

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A survey of 275 veterinary staff, carried out by the British Veterinary Union (BVU) for the CMA last year, indicated that monitoring and targets had an impact on the decisions of almost 40% of nurses and just over 17% of vets. The BVU says the sector has become more profit-driven since non-vets were allowed to take over practices in 1999. Technological advances and changing expectations of pet owners may also be factors in rising vet bills. The CMA is currently investigating concerns about corporations buying hundreds of independent vet practices, pushing up prices and making potentially excessive profits. It is expected to deliver provisional recommendations in July. The review of the sector is a move that could result in prescription fees being capped and leading pet-care chains being forced to break up.

Many of the animals we take in are because their owners are struggling to pay their vet bills, potentially overpaying for medicines and they don’t always know the best treatment options available to them. We also remain concerned about the potential impact of sector consolidation and the incentives for large, integrated vet groups to act in ways which reduce consumer choice.

The investigation will also look at whether profits earned by vets were “consistent” with the levels expected in competitive markets, and if there was any incentive or ability to limit customer choices when recommending treatments or services, particularly when vets were part of larger groups. We are fortunate that Quarry House remain an independent veterinary practice and that we can obtain our veterinary medicines etc. directly at a discount through MWI Animal Health (AmerisourceBergen).

2.2.11 Big Bark Kennel Build Project/Kennel Refurbishment

As mentioned in last year’s report, we wrote to all of our wonderful supporters in April 2023 who kindly donated to our Big Bark Appeal to update them on how we were progressing and to let them know about our future plans. Since we launched our Big Bark Appeal in 2019 so much has changed. The pandemic severely curtailed our fundraising efforts and with the ongoing cost of living crisis and soaring costs, our focus had and has to be on ensuring the sustainability of the Rescue Centre so we can continue to help as many animals as possible.

We advised our supporters that unfortunately we were not going to be able to afford the project we first envisioned in 2017 for a whole new kennel block. With material and labour costs rocketing, as well as what would be a substantial increase in the running costs associated with a larger kennel building, we had to be realistic about what we may be able to achieve. We made what we believe to be a pragmatic decision to focus on achieving a substantial refurbishment of our existing kennel building rather than a new larger one.

Just about all of our supporters who kindly donated to the Big Bark campaign were happy for us to keep their donation to help towards our kennel refurbishment. We thank them for that and we will ensure their money goes exactly to where they intended, to help the homeless dogs for many years to come.

In the latter part of 2023, we held a number of meetings with our architects, ACD Projects, to establish the details of what we would like to achieve. In addition to reconfiguring the layout of the existing kennel building, the discussions also included how we could develop the top area of the Rescue Centre site to incorporate isolation and boarding kennel blocks and a new veterinary building. These will serve the Charity well going forward but they also need to be constructed first before the main kennel building refurbishment, in order that we can still care for dogs during the work. Following site drainage and topographical surveys undertaken, in the first few months of 2024, ACD Projects produced a plan which our various internal stakeholders had input into.

The plan was revised several times ensuring that we came up with a potential design that works for the staff and the dogs, as well as being fit for purpose, hopefully for many years to come. Once we had agreed the finalised plan, ACD Projects’ Quantity Surveyor put some high-level costs against the proposal. Material and labour costs having increased considerably over the last few years meaning that the projected costs were so high that future viability of this project as designed is a non-starter.

In late 2024 and early 2025, we revisited the original kennel plans with ACD Projects with a view to exploring alternative construction methods including the use of more lightweight and cheaper materials, to see if we could bring the projected project costs down to potentially make the project viable.

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The kennel rebuilding still remains an ambitious project for the Charity. We know we have a long way to go and it will require a significant amount of money to be raised in order to deliver on it but we remain determined as ever to achieve our dream of a new kennel building for the dogs and kennel staff. We will keep our supporters updated periodically as to our plans to bring our dream to fruition.

2.2.12 Use of Volunteers

Animals in Distress has continued to benefit from the fantastic contribution that our wonderful volunteers made during 2024. Following the pandemic and the various lockdowns in 2020 and 2021, we found that that even when the shops re-opened, many of our volunteers were very wary of mixing in public so we had fewer volunteers to call upon. However, during 2022, we re-engaged with many of our volunteers and they returned to the shops and following a recruitment drive in 2023 and 2024 for certain roles or support at certain locations, we had a number of new volunteers join us.

Our volunteers contributed at least 15,418 hours to the Charity during 2024 (15,422 hours in 2023) in our shops, at the Rescue Centre, fundraising in the community and in our Head Office. We continue to recognise the incredibly valuable part that our volunteers play in making this Charity such a success and we will continue to involve our volunteers more in other areas of our work such as administration, fundraising and events. The Charity considers the recruitment of volunteers in the same way as staff and carries out a thorough administrative process in their selection.

2.2.13 Fundraising Activity

Our fundraising efforts encompass individual donations and legacies, event and challenge fundraising, social media appeals, trusts and grants, community-led projects and corporate sponsorships. 2024 was an eventful year, marked by a busy summer and autumn attending numerous fairs and fetes and organising dog shows in our local community.

Once again, our dedicated supporters demonstrated their unwavering commitment to the animals in our care by organising and taking part in fundraising events and challenges on our behalf. We are incredibly grateful for the generous support we receive from both our wonderful local community and businesses, particularly in this time of greater financial challenges for many people.

In 2024 we increased our community outreach by forging more links with care homes and schools in our local area. We visited care homes where we gave talks and took animals to meet the residents, which was very well received. We have also seen many school students support us this year while undertaking their Torbay Civic Awards, which we appreciate very much.

We are extremely grateful to our two local Pets at Home stores, whose support through their Community Partnership scheme has been invaluable this year. In addition to hosting regular in-store charity fundraisers, they provide us with pallets of goods for the animals, and VIP Lifelines, which help us secure essential food and supplies throughout the year.

2024 saw the return of our dog challenge event, Muddy Mutts, for the first time since the pandemic. It was very successful and well attended and we will be running it again in future years. Each year we run a Summer Raffle, registered under our Small Society Lottery Licence with Teignbridge Council. We also maintain a successful partnership with Your Charity Lottery, which operates a well-supported lottery on our behalf.

We have a comprehensive Supporter Care Charter in place to ensure our supporters are treated with the utmost respect and gratitude by all our staff and volunteers and receive the recognition they deserve. Every contribution is deeply appreciated, and we make it a priority to personally thank every supporter through phone calls, emails, or handwritten notes.

Our twice-yearly magazine and social media channels remain essential tools for staying connected with our supporters in the wider community. Throughout 2024 our supporters continued to engage with us meaningfully through our social media channels.

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As a registered member of the Fundraising Regulator, we adhere to the Fundraising Promise and the Code of Fundraising Practice. Additionally, our GDPR policy ensures the protection of our supporters’ privacy and data.

A few highlights of 2024 include:

2.2.14 Importance of Legacies

Legacy income is a cornerstone of financial sustainability for UK charities, providing essential funding that supports vital services and long-term projects. In 2023/24, charities received £4.1 billion from bequests, a modest increase from the previous year but a testament to the enduring generosity of the public and the growing importance of this income stream.

Over the past three decades, legacy income has consistently grown, with projections indicating it could reach £5 billion annually by 2030 and over £10 billion by 2050. This growth is driven by the increasing number of bequests and the ageing population, particularly the Baby Boomer generation, who are more likely to leave charitable gifts in their wills. This trend provides charities with a more predictable and stable income stream, essential for long-term planning and service delivery.

Despite its importance, legacy income is not without challenges. Probate delays, where the legal process to administer a deceased person's estate is prolonged, can significantly impact charities' cash flow and the timely receipt of funds. Additionally, economic factors such as fluctuations in the housing market can affect the value of bequests, as many estates include property assets. However, the longterm outlook remains positive, with expected increases in the number of people passing away and continued public interest in supporting charitable causes through legacies.

We recognise that investing in legacy fundraising is a strategic priority for Animals in Distress. Developing and maintaining an effective legacy program can build a sustainable financial base, reducing reliance on more volatile income sources. Furthermore, fostering a culture of legacy giving can strengthen our relationships with supporters, demonstrating a commitment to long-term impact and stewardship.

In 2024, we received legacies totalling £974,887 from the estates of 27 legators. This was an incredible amount received in a year and we are so grateful to those who thought of Animals in Distress at the time they wrote their Wills. Many of these supporters had adopted animals from us over the years.

Legacy income is more than just a financial asset; it is a testament to the lasting impact of charitable work and the trust placed in organisations such as Animals in Distress, by their supporters. As the sector continues to evolve, embracing and enhancing legacy giving will be crucial for ensuring that charities can meet future challenges and continue to make a meaningful difference in communities across the UK.

2.2.15 Staff Personal Development

The Charity continues to invest in the continuing professional development (CPD) of our staff. It remains a priority for the Charity in order to ensure that we have a constantly developing workforce so that staff have the knowledge and skills to perform their roles in a professional context.

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This ranges from honing current skills, developing them to a new level or learning new ones that will allow an employee’s job role to expand or prepare them for potential promotion.

Several staff members undertook courses with the Centre of Excellence, including Level 3 - Leadership and Management, Feline Behaviour and Psychology Diploma, Canine Behaviour Training Diploma and a Rabbit Care, Behaviour and Welfare Diploma Course. One new manager also attended a new to management training course run by ACAS.

We continued our association with Battersea in 2024, with some of the courses held virtually. The Battersea Academy is a centre for professional development that trains animal welfare practitioners from across the UK and around the world. Delivered by Battersea’s experts, Academy programmes are designed to equip participants with the knowledge and practical skills they need to operate their own rescue and rehoming centres effectively and to the highest possible standards.

Their programmes cover up to date animal welfare principles, models and approaches to running a rescue centre. They work with participants before they attend to ensure each programme is tailored to the specific needs of the organisations attending. The Charity has received bursaries from Battersea in the past to attend the intensive programmes and the Charity and staff will take advantage of suitable programmes in 2025.

2.2.16 Animal Welfare Law

As of 2024, the UK has introduced several significant legislative measures aimed at enhancing the welfare of domestic animals. Here's an overview of the key developments:

Pet Abduction Act 2024: This Act, which came into force on 24[th] August 2024, specifically criminalises the abduction of domestic pets, including dogs and cats, in England and Northern Ireland. Offenders can face fines or imprisonment for up to five years. The legislation acknowledges that pets are sentient beings capable of experiencing distress and trauma when stolen from their owners.

Dangerous Dogs Act 1991: Ownership of American bully XL dogs is restricted under the Dangerous Dogs Act 1991. Since 31[st] December 2023, it has been against the law to sell, give away, abandon or breed from an XL bully. Since 1[st] February 2024, it has been a criminal offence to own a XL bully without an exemption certificate. The government said it received 61,000 exemption applications before the deadline. Owners are subject to restrictions in place meaning their dogs must be neutered, and muzzled and kept on a lead in public. Police can seize unregistered prohibited dogs, and their owners face a criminal record and unlimited fine.

Puppy Smuggling Bill: A private member's bill, supported by the government, aims to combat puppy smuggling by:

Animal Welfare (Livestock Exports) Act 2024: This Act prohibits the export of certain livestock from Great Britain for slaughter, including cattle, sheep, goats, pigs, and wild boar. It aims to end the practice of live exports for fattening or slaughter, marking a significant step in animal welfare reform.

Penalty Notices for Animal Welfare Offences: Introduced on 1[st] January 2024, local authorities now have the power to issue on-the-spot fines up to £5,000 for various animal welfare and health violations. This measure enhances enforcement and provides a more immediate response to breaches of animal welfare standards.

Animal Welfare (Sentience) Act 2022: Although not enacted in 2024, this Act remains a cornerstone of UK animal welfare law.

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It formally recognises animals as sentient beings in UK law, ensuring that their ability to experience pain and suffering is considered in government policy decisions.

These legislative advancements reflect the UK's commitment to improving the welfare of domestic animals.

2.3 Challenges Ahead

Like all charities, Animals in Distress (Torbay and Westcountry) is and will be facing many challenges in 2025, including economic pressures, evolving donor behaviour, the need for innovative fundraising strategies, and ensuring effective impact measurement, while also navigating digital disruptions and cybersecurity threats. Here's a breakdown of the key challenges:

Financial Pressures & Funding:

Fundraising & Donor Engagement:

Service Delivery & Impact:

2.3.1 Key Risks in 2025

In 2025, UK charities face key risks including financial instability due to rising costs and reduced funding, cybersecurity threats, reputational damage, and the need to adapt to evolving societal and economic landscapes, as well as increased demands on their services.

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Financial Instability:

Cybersecurity:

Reputational Risks:

It is vital that at Animals in Distress, we anticipate challenges and have strategies in place to manage events and uncertainties ahead. The continued growth of digital technology offers new ways for us to communicate with our supporters and create more personalised fundraising campaigns, along with the use of Artificial Intelligence to enhance the supporter experience, and this may well be key to our survival in the future.

2.3.2 Top Fundraising Trends

Fundraising trends may come and go, but there’s always something exciting about peering into the future. As we progress through 2025, charities are adapting to a rapidly evolving fundraising landscape, influenced by technological advancements, shifting donor behaviours, and changing societal expectations. Here are some of the most prominent fundraising trends shaping the sector this year.

- Digital Transformation and Data Driven Fundraising:

Charities are increasingly leveraging technology to enhance their fundraising efforts. Artificial Intelligence (AI) and predictive analytics are being employed to segment audiences, forecast donor behaviour, and personalise engagement strategies. Platforms like JustGiving and GiveWP now offer dynamic dashboards that visualise campaign performance in real-time, enabling charities to make datadriven decisions mid-campaign. Moreover, the integration of mobile-first donation options, such as oneclick donations and contactless giving, has streamlined the donation process, catering to the increasing preference for digital transactions.

Hybrid and Immersive Events:

The trend of hybrid events, combining in-person and virtual elements, continues to thrive. These events allow charities to reach a broader audience while maintaining the personal connection of physical gatherings. Innovative use of immersive technologies, such as virtual reality (VR), has been shown to

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increase engagement rates and donation amounts by providing donors with a tangible sense of the impact of their contributions.

Engaging Younger Donors:

Millennials and Gen Z are emerging as significant contributors to charitable causes, each donating more than £500 annually, double that of Gen X and significantly more than Boomers. These generations are drawn to causes such as social justice, sustainability, and community development, and they value authenticity and inclusivity in the charities they support. Charities are responding by creating interactive experiences and leveraging platforms like TikTok and Instagram to engage with these younger audiences.

Corporate Partnerships and Employee Engagement:

Corporate giving is evolving from traditional sponsorships to more strategic partnerships. Businesses are increasingly seeking long-term collaborations that align with their corporate social responsibility (CSR) objectives. Charities are capitalising on this shift by offering value-driven partnerships that include employee engagement initiatives, such as volunteering and fundraising challenges.

Flexible and Transparent Giving:

Donors are seeking more control over their contributions. Flexible giving options, such as allowing donors to adjust their monthly donations or skip a month, are gaining popularity. For instance, UNICEF UK offers supporters the ability to pause their donations via text message, providing greater autonomy and potentially increasing donor retention. Transparency in how donations are used is also crucial. Providing donors with clear information about the impact of their contributions fosters trust and encourages continued support.

Regular Giving:

Regular giving has long been the backbone of non-profit fundraising, but younger generations are engaging with causes in ways that differ significantly from traditional supporters. There is a shift toward dynamic, subscription-style models that not only sustain ongoing support but also provide tangible, engaging benefits to donors. It’s about evolving regular giving into something more experiential and interactive.

It’s all about layering these elements to build more dimensional campaigns. When donors feel like they’re part of a movement, not just completing a transaction, it transforms the experience. That shift would be a game-changer for expanding the reach and impact of campaigns. The key here is personalisation and storytelling. Donors aren’t just giving; they’re part of an ongoing journey, tracking their impact and feeling recognised for their contributions. By turning regular giving into an experience that feels purposeful and rewarding, charities can appeal to a generation accustomed to subscription boxes and gamified experiences. This could be the future of donor retention, turning passive giving into an active, rewarding connection with the cause.

The TikTok Takeover Continues:

No surprises that TikTok and other video-first platforms will continue to dominate, pulling audiences away from the likes of Facebook, and charities need to follow suit. All that is needed is someone with a smartphone, doesn’t shy away from the camera, and knows how to capture raw, real moments that resonate. Forget perfection, it is about focussing on authenticity and getting content out there. One of the best things about TikTok is that you don’t need to grind away at building a massive following to see results. A single piece of great content has the power to go viral on its own, opening our message up to new and untapped audiences. The key is to start experimenting and learning on the fly. Dive in, iterate, and let the platform’s unique style guide our creativity, it’s where our audience is, and it’s where our stories need to be told.

Improving The User Experience:

With so much budget allocated to acquisition, the real return on investment happens on the landing page. Optimising donation forms for speed and simplicity, designing mobile-first experiences, and

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integrating features like e-wallet payments, pre-populated PURLs, and one-click donations are no longer optional, they’re essential. The goal? Make donating effortless. When every click matters, a seamless user experience can mean the difference between a lost opportunity and a lifelong supporter. But it’s not just about driving strong conversion rates; it’s also about optimising the average gift amount. Striking this balance requires a well-thought-out donor journey that encourages generosity while remaining intuitive and frustration-free.

In summary, in 2025 UK charities are embracing technological advancements, adapting to changing donor expectations, and fostering strategic partnerships to enhance their fundraising efforts. It’s an exciting and transformative time to be in this space, with endless opportunities to innovate, connect, and inspire. The future of fundraising is full of potential and therefore it is vital that at Animals in Distress (Torbay and Westcountry), we stay attuned to these trends, in order to navigate the evolving landscape and continue to make a meaningful impact.

2.4 Financial Sustainability

Generating income and achieving financial sustainability is the main and constant challenge facing Animals in Distress. However, as always, it is important to remain optimistic about the future of our organisation, with the level of optimism increasing in line with income. It is fair to say that we continue to be more optimistic about our own organisation rather than the sector as a whole.

2.5 Ensuring We Live Within Our Means

As the difficult times continue, it is inevitable that more and more charities are running out of options to continue to meet the high and protracted demand for their services becoming overwhelming. As charities face continued pressures on services and reduced capacity to deliver, it is unsurprising that many charities are now needing to use their reserves to cover core costs. We always endeavour to live within our means, none more so than over the last few difficult years. As a result, we have been fortunate that we have not had to dip into our reserves.

Although the demand for our services remains high, we continue to regulate our intake of animals based upon our ability to fund our work. This pragmatic decision has ensured that we have been able to maintain a good level of service without risking the financial position or future of the Charity. This way, we can be confident that we continue to have the funds to meet a demand that we can regulate and ensure that the Charity can still do its excellent work for many years to come.

2.6 Volunteer Retention

The best way to keep volunteers is to make sure what they do meets their motivation for giving their time. The most common motivations for volunteering include wanting to improve things or help people, having the spare time to do it and the charity or cause being important to the individual.

Each volunteer will have their own reasons for volunteering, which may change over time. We have to be flexible and open to meeting our volunteers’ needs where possible but also be clear if we think a role won’t be a good match and explain why. We have to make sure roles are meaningful, that volunteers should get some enjoyment or fulfilment from volunteering. We strive to make our volunteers feel welcome, able to be themselves. We have tried to make it as easy as possible to volunteer, removing any unnecessary barriers to getting and staying involved. We endeavour to give our volunteers the information they need to do their role and keep them updated in the way they prefer.

Giving time is a valuable donation and therefore, it is important that we continue to respect this. We encourage our staff to take an interest in our volunteers and get to know them, where this is possible. It is important that we continue to thank our volunteers and highlight their efforts as well as listen to and seek their thoughts, ideas and suggestions. Volunteers certainly have a voice in our organisation and can contribute to how it works.

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2.7 What Can Charities Do To Navigate These Difficult Times

The pandemic and the impact of the cost-of-living crisis have brought about two major realisations, how dependent society is on the contribution of civil society and civic spirit as well as the extent to which the external environment can have a long-term impact on the charity sector. There are areas which charities like Animals in Distress must make sure we have invested in sufficiently to balance the current need to deliver services with future preparedness and resilience. These considerations include increasing financial resilience and sustainability, managing costs and moving towards renewable energy sources, embracing the social economy and partnerships, and increasing engagement with donors.

We hope that the worst is over for charities but as the impact of the cost of living crisis is still being felt, there could be worse to come. The crisis is potentially both deeper and longer than COVID. This is due primarily to the huge funding gap, made worse by inflation driving costs and eating into the real value of income, the surge in demand and increasing people-related challenges. The funding landscape remains challenging but it is hoped that it has stopped worsening now. The charity sector is experiencing a period of unrelenting change driven by factors such as:

These factors are forcing us to adapt and to respond in ways that protect our operations, while continuing to focus on the needs of our beneficiaries. These challenges are reflected in risks related to governance and strategy, organisational change and reputation.

During 2024, we continued to actively take measures to cut our expenditure where we have been able to do so. We restricted spending to our core activities and any future projects have been put on hold. In the short term, the measures that we have taken and the funding we have been able to source will make sure we are in a strong position to continue to ride the waves during these uncertain times and recover when the various crises are over and eventually the global economy settles down.

The Trustees and CEO continue to discuss the issues and challenges, making decisions and then acting together to successfully implement those decisions. We endeavour to make timely decisions within shorter timescales. As income levels are threatened and additional costs arise, cash flow and reserves management inevitably demand our greatest attention.

We are fortunate that we have a strong robust reserves policy, we have cash reserves that we would be able to draw on to manage our cash requirements. Fortunately, we did not have to draw on our reserves in 2024 but if we do need to do so at some point, the issue will be how the reduction in reserves is going to be managed going forwards. If the worst was to happen and we had to draw on our reserves, then we know that it would take time to build our reserves level up again and therefore we may have to consider selling investments to help with this.

There are a number of key areas we are focussing on for our planning, budgeting and re-forecasting:

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We have and will continue to adapt and change our business model due to the post-pandemic world and the global economy. There have been extremely difficult times and no doubt there will be going forward. We continue to do all we can to mitigate the situation in the short-term in order to secure the medium to long-term sustainability of the Charity.

2.8 Investment Strategy

As reported last year, the Trustees and CEO recognised that the Charity was sitting on a large cash balance with little earnings potential. The cashflow of the Charity is quite unpredictable, and it is the donations that come through legacies which really make the difference. As a result, it was agreed in 2022 that the Charity had the capacity to invest a lump sum of £400k, aiming to generate the potential of greater long-term growth in order for the Charity to continue operating for years to come.

The Trustees and CEO met with Francis Clark Financial Planning to discuss our objectives. They considered a range of factors including our financial ambitions, our investment preferences and agreed risk profile to create a bespoke financial forecast that is adaptable to changing circumstances and maximises our return on investment.

Our main objective for these funds remains that the portfolio avoids investment in or have any direct involvement in any companies, governments or organisations which are associated in any way with animal testing, or any cruelty to animals whatsoever. The portfolio needs to ensure absolute screening and compliance with this area moving forward. The Trustees and CEO accept that in some cases there may be some residual exposure to animal testing in pharmaceutical sectors but wish to avoid animal testing on a best-efforts basis.

Following discussions with Francis Clark Financial Planning and based on our requirements and objectives, they recommended we invest the £400k in a new discretionary arrangement with RBC Brewin Dolphin. Whilst Brewin Dolphin were more expensive than the cheapest proposal, the following summarises the conclusions for their recommendation:

For long term investors Brewin Dolphin believed that our investment risk appetite is appropriate and should protect the capital value of the portfolio from inflation, while producing an attractive level of income. The closest match to the recommended DT 5 or 6 level was to use the RBC Brewin Dolphin’s Intermediary Risk Level 6: High Medium Risk. A ‘high medium’ risk profile shows that our willingness and ability to accept investment risk is slightly above average. A portfolio that matches this risk profile is likely to experience some significant rises and falls in value, most likely containing mainly medium and high-risk investments, including Sterling corporate bonds and global bonds including higher income types as well as Property and shares. The shares are expected to be held mainly in the UK and other developed markets, but there is also likely to be some in higher-risk emerging markets.

There are a number of risk considerations that we continue to take into account:

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RBC Brewin Dolphin’s work in optimising portfolio structures to try and ensure that portfolios produce the best level of return for a given level of risk produces a slightly different structure. Over time, RBC Brewin Dolphin believes that an investment portfolio with this broad structure will produce a return in the region of CPI + 2.0%. (Using the Bank of England’s targeted inflation rate of 2%.) RBC Brewin Dolphin is very conscious that these expected returns are significantly below historic returns reflecting that we are in a challenged world, low economic growth translates to lower investment returns.

The £400,000 was invested in April 2023 and is seen by the Trustees and CEO as a medium to longterm investment, the returns from which will help secure the financial future of the Charity and if appropriate, assist with funding larger projects, such as building work at the Rescue Centre.

We are pleased to report that our portfolio performed well during 2024, despite global market turbulence. Our portfolio has achieved growth of 13.19% since inception two years ago. The ARC Charity Steady Growth Charity GB Indices achieved growth of 12.34% during that same period. ARC Charity Indices is a set of indices compiled by the ARC Research and are used by charity trustees and their advisers to assess the performance of a discretionary charity portfolio. The ARC Charity Indices provide actual returns generated by discretionary charity portfolios net of fees, based on hundreds of charity portfolios submitted to ARC. We meet with RBC Brewin Dolphin regularly to review our portfolios performance.

2.9 Principal Risks

The Trustees and CEO recognise that through the nature of our activities, funding base, reserves and structure, the Charity is exposed to differing areas of risk and levels of exposure. There are many areas of potential risk and we undertake our own processes for risk identification. The following list is an indication of a few of the main areas of risk that are considered by the Trustees and CEO:

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3.0 FINANCIAL POSITION AND RESERVES

At 31 December 2024, the Charity had total reserves of £5,383,000, of which £5,380,000 were unrestricted.

The Charity has sought to separate those unrestricted reserves that are held in the form of property fund assets (£2,073,000) from those that are freely available for its general purposes. As well as providing a more informed view of the overall reserves it enables a more realistic assessment to be made of the Charity’s strategy with regard to our level and future deployment.

The so-called free reserves are then demarcated into a separate category (building fund totalling £1,178,000) that accords with the Charity’s medium and long-term plans to improve facilities at the Rescue Centre. This acknowledges and takes account of the fact that large scale capital projects require “saving for” over many years.

The balancing general reserve (£2,130,000) recognises that it is extremely difficult to predict income from legacies, so the Charity aims to hold at least £830,000 in reserve, which equates to 6 months average operating costs. Our reserves currently exceed this figure in order to cover future projects and eventualities. It is anticipated that our investment policy will match the spending and reserves policy.

23

ANIMALS IN DISTRESS (TORBAY & WESTCOUNTRY)

(A Company Limited by Guarantee)

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

The Charity Trustees (who are also the directors of Animals in Distress (Torbay and Westcountry) for the purposes of Company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the income and expenditure of the charitable company for that period.

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

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and 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.

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 U.K governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement as to Disclosure to our Auditors

In so far as the Trustees are aware at the time of approving our Trustees’ annual report:

By order of the board of Trustees and signed on behalf of the Trustees:

G Dix (Chair) C Paradine

Date: ……………………….…2025

Report compiled for and on behalf of the Trustees by Neil Thomas (CEO)

24

ANIMALS IN DISTRESS (TORBAY AND WESTCOUNTRY)

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF ANIMALS IN DISTRESS (TORBAY AND WESTCOUNTRY)

FOR THE YEAR ENDED 31 DECEMBER 2024

Opinion

We have audited the financial statements of Animals in Distress (Torbay and Westcountry) (the “charitable company”) for the year ended 31 December 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and 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 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 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 the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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.

25

ANIMALS IN DISTRESS (TORBAY AND WESTCOUNTRY)

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF ANIMALS IN DISTRESS (TORBAY AND WESTCOUNTRY)

FOR THE YEAR ENDED 31 DECEMBER 2024

Other information

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

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (incorporating the strategic report and the directors’ 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 Statement of Trustees’ Responsibilities (set out on page 24), the trustees 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 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.

26

ANIMALS IN DISTRESS (TORBAY AND WESTCOUNTRY)

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF ANIMALS IN DISTRESS (TORBAY AND WESTCOUNTRY)

FOR THE YEAR ENDED 31 DECEMBER 2024

Auditor’s responsibilities for the audit of the financial statements

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

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

We considered those laws and regulations that have a direct impact on the preparation of the financial statements, including, but not limited to FRS 102 (effective 1 January 2019) - (Charities SORP), the Companies Act 2006 and the Charities Act 2011. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group’s ability to operate or to avoid a material penalty.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks related to fraudulent financial reporting, in particular to grant funding received.

Audit procedures performed by the engagement team include, but were not limited to, discussions and inquiries with management of compliance with laws and regulations, reviewing grant funding agreements, and reviewing board minutes and significant legal costs incurred in the year. We also addressed the risk of management override of internal controls, including testing of journals and evaluating whether there was evidence of bias by the Trustees that represented a risk of material misstatement due to fraud.

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

27

ANIMALS IN DISTRESS (TORBAY AND WESTCOUNTRY)

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF ANIMALS IN DISTRESS (TORBAY AND WESTCOUNTRY)

FOR THE YEAR ENDED 31 DECEMBER 2024

Use of our report

This report is made solely to the charitable parent 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 group'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 parent company and its members as a body, for our audit work, for this report, or for the opinions we have formed.

Martin Hobbs BSc ACA (Senior Statutory Auditor) PKF Francis Clark, Statutory Auditor Sigma House Oak View Close Edginswell Park Torquay TQ2 7FF

Date: ……………….. 2025

28

ANIMALS IN DISTRESS (TORBAY AND WESTCOUNTRY)

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 DECEMBER 2024

Note
Income from:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Total income
Expenditure on:
Raising funds
7
Charitable activities
8
Total expenditure
Net gains on investments
17
Net income/(expenditure)
Transfers between funds
23
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
23		 Unrestricted
Funds
2024
£

1,083,705
95,635
897,440
76,435
2,153,215
866,665
786,541
1,653,206
31,792
531,801
(3,964)
527,837
4,852,304
5,380,141		 Restricted
Funds
2024
£
1,462
-
-
-
1,462
-
9,805
9,805
-
(8,343)
3,964
(4,379)
7,157
2,778		 Total
Funds
2024
£
1,085,167
95,635
897,440
76,435
2,154,677
866,665
796,346
1,663,011
31,792
523,458
-
523,458
4,859,461
5,382,919		 Total
Funds
2023
£
726,476
77,784
909,817
46,021
1,760,098
792,331
721,642
1,513,973
24,853
270,978
-
270,978
4,588,483
4,859,461

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure is derived from continuing activities.

The notes on pages 33 to 45 form part of these financial statements.

29

ANIMALS IN DISTRESS (TORBAY AND WESTCOUNTRY)

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 DECEMBER 2023

Note
Income from:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Total income
Expenditure on:
Raising funds
7
Charitable activities
8
Total expenditure
Net gains on investments
17
Net income/(expenditure)
Transfers between funds
23
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
23		 Unrestricted
Funds
2023
£

726,021
77,784
909,817
46,021
1,759,643
792,331
692,970
1,485,301
24,853
299,195
-
299,195
4,553,109
4,852,304		 Restricted
Funds
2023
£
455
-
-
-
455
-
28,672
28,672
-
(28,217)
-
(28,217)
35,374
7,157		 Total
Funds
2023
£
726,476
77,784
909,817
46,021
1,760,098
792,331
721,642
1,513,973
24,853
270,978
-
270,978
4,588,483
4,859,461		 Total
Funds
2022
£
822,348
66,462
857,169
21,629
1,767,608
705,345
615,383
1,320,728
-
446,880
-
446,880
4,141,603
4,588,483

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure is derived from continuing activities.

30

ANIMALS IN DISTRESS (TORBAY AND WESTCOUNTRY)

(A Company Limited by Guarantee)

BALANCE SHEET

AS AT 31 DECEMBER 2024

Notes
Fixed assets
Intangible assets
15
Tangible assets
16
Investments
17
Current assets
Stocks
18
Debtors
19
Cash at bank and in hand
Liabilities
Creditors falling due within one year
20
Net current assets
Total assets less current liabilities
Creditors falling due after more
than one year
21
Net assets
Restricted funds
23
General funds
23
Designated funds
23
Total charity funds		 2024
£
2023
£
-
-
2,498,871
2,553,537
464,156
427,608
2,963,027
2,981,145
7,740
7,323
212,285
228,162
2,354,084
1,812,746
2,574,109
2,048,231
82,772
77,335
2,491,337
1,970,896
5,454,364
4,952,041
71,445
92,580
5,382,919
4,859,461
2,778
7,157
2,129,502
1,600,682
3,250,639
3,251,622
5,382,919
4,859,461

The notes on pages 33 to 45 form part of these financial statements.

The financial statements were approved by the trustees on ……………. and signed on their behalf by:

G Dix Trustee

31

ANIMALS IN DISTRESS (TORBAY AND WESTCOUNTRY)

(A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2024

Note
Cash flows from operating activities
25
Cash flows from investing activities
Rent received
Interest income
Purchase of tangible fixed assets
Proceeds on sale of tangible fixed assets
Purchase of investments
Cash flows from investing activities
Cash flows from financing activities
Repayments of bank borrowings
Cash flows from financing activities
Increase/(decrease) in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
26
Cash and cash equivalents at the end of the year
26		 2024
£
2023
£
518,793
420,186
22,762
22,900
42,435
17,107
(22,482)
(85,956)
-
10,000
-
(400,000)
42,715
(435,949)
(20,170)
(19,339)
(20,170)
(19,339)
541,338
(35,102)
1,812,746
1,847,848
2,354,084
1,812,746

32

ANIMALS IN DISTRESS (TORBAY AND WESTCOUNTRY)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1 Accounting Policies

The principal accounting policies adopted, judgements made and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a) Basis of preparation of financial statements and assessment of going concern

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) (effective 1 January 2015) – (Charities SORP (FRS 102)), FRS 102 and the Companies Act 2006.

The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern.

Animals in Distress (Torbay and Westcountry) 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) Income

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

Voluntary income by way of donations, membership, sponsorship and collections, is accounted for when receivable. Income raised through the operation of the shops is taken into account at the time of receipt.

Legacies are included where there is entitlement, it is probable that the charity will receive the money and the amount can be reliably measured. Entitlement is satisfied after probate is granted. If the amount can be reliably measured, the legacy will be recognised as income.

Donated goods relating to animal food are brought in to income and expenditure at the value they would have cost had they been purchased by the charity.

c) Fund accounting

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.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes.

Restricted funds are funds received which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes.

33

ANIMALS IN DISTRESS (TORBAY AND WESTCOUNTRY)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

d) 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. Expenditure is classified under the following activity headings:

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

e) Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity’s activities. These costs have been allocated between costs of raising funds, expenditure on charitable activities and other expenditure, based on staff time.

f) Operating leases

Rental charges under operating leases are charged on a straight line basis over the term of the lease.

g) Intangible fixed assets

Intangible fixed assets are initially recorded at cost. Computer software is amortised on a straight line basis over its expected useful economic life of 4 years.

h) Tangible fixed assets

Individual tangible fixed assets are capitalised at cost and are depreciated over their estimated useful economic lives as follows:

Freehold buildings 2% straight line Equipment 20% reducing balance IT equipment 25% straight line Motor vehicles 25% reducing balance

i)

Stocks

Stocks are included at the lower of cost and net realisable value.

j) Investments

Investments where they are publicly traded or their fair value can be measured reliably are measured at fair value through the statement of financial activities. The fair value has been measured at the quoted market price at the balance sheet date. Investments where the fair value cannot be measured reliably are measured at cost less impairment.

k) Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid. Accrued income is recognised where the criteria for recognising income has been met at the year-end but the claim or invoice has not been submitted/issued until after the year-end.

34

ANIMALS IN DISTRESS (TORBAY AND WESTCOUNTRY)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

m) Creditors

Creditors are recognised where the charity has 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 are normally recognised at their settlement amount after allowing for any trade discounts due.

n) Financial instruments

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

o) Pensions

The charity operates a defined contribution pension scheme and membership is open to all employees of the charity. The assets of the scheme are held separately from those of the charity. The charity matches employee contributions of 1-4% with an employer contribution of 3% and the contributions are paid into the fund on a monthly basis. The contributions made for the accounting period are treated as an expense and were £24,578 (2023: £20,624). Contributions totalling £2,198 (2023: £1,937) were payable to the fund at the balance sheet date and are included in creditors.

2 Legal status of the Charity

The Charity is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The Charity is incorporated in England and Wales. The address of its registered office is: Biltor, Edgelands Lane, Ipplepen, Newton Abbot, TQ12 5UF.

3 Income from donations and legacies

Donations and gifts
Legacies
Grants
Memberships and sponsorship
Total income from donations and legacies		 2024
£
105,050
941,421
800
37,896
1,085,167		 2023
£
269,511
437,709
1,100
18,156
726,476

Donations and gifts include a £Nil (2023: £165,048) donation from the old charity, Animals in Distress (Torbay and Westcountry) Incorporating Torbay Animal Welfare Sanctuary.

As noted in the trustees’ report the charity benefits notably from the involvement and enthusiastic contributions of volunteers. In accordance with FRS 102 and the Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the accounts.

35

ANIMALS IN DISTRESS (TORBAY AND WESTCOUNTRY)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

4 Income from charitable activities

5 Income from other trading activities
6 Investment income
7 Analysis of expenditure on raising funds
Re-homing fees
Animal Boarding
South Hams Strays and Vet income
Total income from charitable activities
Memberships and sponsorships
Fundraising events
Shop income
Petplan commission
Total income from other trading activities
Rent
Interest
Investment income
Total investment income
Fundraising
Shop costs
Support costs
Total expenditure on raising funds		 2024
£
73,570
17,695
4,370
95,635
2024
£
5,675
32,302
845,127
14,336
897,440
2024
£
22,762
42,435
11,238
76,435
2024
£
13,728
646,514
206,423
866,665		 2023
£
61,873
9,811
6,100
77,784
2023
£
3,455
24,911
868,754
12,697
909,817
2023
£
22,900
17,106
6,015
46,021
2023
£
9,692
593,823
188,816
792,331

36

ANIMALS IN DISTRESS (TORBAY AND WESTCOUNTRY)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

8 Analysis of expenditure on charitable activities

Rescue Centre
Support costs
Total expenditure on charitable activities		 2024
£
709,880
86,466
796,346		 2023
£
618,754
102,888
721,642

9 Analysis of support costs

All support costs are allocated based on the basis of staff time.

The analysis of support costs is as follows:

Salaries and other staff costs
Travel and subsistence
Professional fees
Finance costs and exchange
losses
Investment management
Loss on disposal of assets
Office costs
Other costs
Governance
Total support costs		 Raising
Funds
£
Charitable
Activities
£
Total
2024
£
Total
2023
£
168,368
63,900
232,268
202,938
-
-
-
71
2,408
914
3,322
20,079
4,375
1,661
6,036
6,903
5,741
-
5,741
3,260
-
-
-
31,543
17,569
6,668
24,237
8,886
6,647
2,523
9,170
7,860
1,315
10,800
12,115
10,164
206,423
86,466
292,889
291,704

10 Analysis of governance costs

The analysis of governance costs is as follows:

Salaries and other staff costs
Professional fees
Other costs
Total		 Total
2024
£
Total
2023
£
1,110
849
10,816
9,000
189
315
12,115
10,164

37

ANIMALS IN DISTRESS (TORBAY AND WESTCOUNTRY)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

11 Net income for the year

This is stated after charging:

2024 2023
£ £
Operating leases - property 74,250 74,250
Operating leases- equipment 14,120 18,026
Depreciation 77,148 74,357
Amortisation - -
Interest payable 4,678 5,510
Auditors’ remuneration: audit fees 5,450 4,670
accounts 3,925 3,375
taxation 1,125 955

12 Analysis of staff costs, trustee remuneration and expenses, the cost of key management personnel and related party transactions

Salaries and wages
Social security costs
Pension costs		 2024
£
1,019,163
69,736
24,578
1,113,477		 2023
£
883,720
55,409
20,624
959,753

One employee had remuneration in excess of £90,000 and less than £100,000 (2023: one in excess of £80,000 and less than £90,000).

The charity trustees were not paid and did not receive any other benefits from the charity (2023: None). No travel or other expenses were reimbursed to the trustees during the year (2023: None).

The total remuneration, including employer’s national insurance, of the key management personnel of the charity was £106,197 (2023: £96,636).

There were no related party transactions (2023: None).

38

ANIMALS IN DISTRESS (TORBAY AND WESTCOUNTRY)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

13 Staff numbers

The average monthly head count was as follows:

Rescue Centre
Charity shops
Administration and support
Chief Executive		 2024
19
24
6
1
50		 2023
19
24
6
1
50

14 Corporation tax

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

15 Intangible fixed assets

Cost:
As at 1 January 2024
As at 31 December 2024
Amortisation:
As at 1 January 2024
Charge for the year
As at 31 December 2024
Net book value:
As at 1 January 2024
As at 31 December 2024		 Software
£
Total
£
13,100
13,100
13,100
13,100
13,100
13,100
-
-
13,100
13,100
-
-
-
-

39

ANIMALS IN DISTRESS (TORBAY AND WESTCOUNTRY)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

16 Tangible fixed assets

Cost:
As at 1 January 2024
Additions
As at 31 December 2024
Depreciation:
As at 1 January 2024
Charge for the year
As at 31 December 2024
Net book value:
As at 1 January 2024
As at 31 December 2024		 Freehold
Property
£
Equipment
£
IT
Equipment
£
Motor
Vehicles
£
3,176,019
155,512
97,408
21,920
17,003
1,359
4,120
-		 Total
£
3,450,859
22,482
3,193,022
156,871
101,528
21,920		 3,473,341
662,085
143,690
72,553
18,994
63,936
3,849
8,631
732		 897,322
77,148
726,021
147,539
81,184
19,726		 974,470
2,513,934
11,822
24,855
2,926		 2,553,537
2,467,001
9,332
20,344
2,194		 2,498,871

17 Investments

As at 1 January 2024
Revaluations
Income reinvested
Charges
As at 31 December 2024		 Total
£
427,608
31,792
10,497
(5,741)
464,156

Included in the balance at 31 December 2024 is £458,170 of listed securities (2023: £414,656) and £5,986 (2023: £12,952) is cash held as part of the investment portfolio.

40

ANIMALS IN DISTRESS (TORBAY AND WESTCOUNTRY)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

18 Stocks
19 Debtors
Goods for resale
Vet room supplies
Shop stationery stocks
Trade debtors
Other debtors
Prepayments and accrued income		 2024
£
2023
£
793
670
5,710
5,710
1,237
943
7,740
7,323
2024
£
2023
£
6,315
3,375
51,216
53,593
154,754
171,194
212,285
228,162

20 Creditors: amounts falling due within one year

Trade creditors
Other creditors
Accruals and deferred income
Social security and other taxes
Bank loan		 2024
£
2023
£
11,511
13,840
5,357
4,488
26,841
25,340
17,928
13,497
21,135
20,170
82,772
77,335

The bank loan is secured by a charge over one of the charity’s properties.

21 Creditors: amounts falling due after one year

Bank loan 2024
£
2023
£
71,445
92,580
71,445
92,580

The bank loan is secured by a charge over one of the charity’s properties.

41

ANIMALS IN DISTRESS (TORBAY AND WESTCOUNTRY)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

22 Obligations Under Leases

The total of future minimum lease payments is as follows:

Land and Buildings Other Other
2024 2023 2024 2023
£ £ £ £
Operating leases expiring:
Within one year 31,500 31,500 11,129 9,615
Between one and five years 80,333 106,833 43,598 38,330
After more than five years - 5,000 - -
111,833 143,333 54,727 47,945
23 Analysis of movements in funds
Balance at Balance at
1 January Incoming Resources Gains on
31		 December
2024 resources expended Transfers investments 2024
£ £ £ £ £ £
General fund
1,600,682 2,153,215 (1,652,223) (3,964) 31,792 2,129,502
Designated funds:
Property fund 2,073,872 - (983) - - 2,072,889
Building fund 1,177,750 - - - - 1,177,750
3,251,622 - (983) - - 3,250,639
Total unrestricted
funds		 4,852,304 2,153,215 (1,653,206) (3,964) 31,792 5,380,141
Restricted funds 7,157 1,462 (9,805) 3,964 - 2,778
Total restricted
funds		 7,157 1,462 (9,805) 3,964 - 2,778

The restricted funds shown above represent funds raised from appeals for specific projects.

42

ANIMALS IN DISTRESS (TORBAY AND WESTCOUNTRY)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

General fund
Designated funds:
Property fund
Building fund
Total unrestricted
funds
Restricted funds
Total restricted
funds		 Balance at
1 January
2023
£
Incoming
resources
£
Resources
expended
£
Transfers
£
Gains on
investments
£
Balance at
31 December
2023
£
1,301,487
1,759,643
(1,485,301)
-
24,853
1,600,682
2,073,872
-
-
-
-
2,073,872
1,177,750
-
-
-
-
1,177,750
3,251,622
-
-
-
-
3,251,622
4,553,109
1,759,643
(1,485,301)
-
24,853
4,852,304
35,374
455
(28,672)
-
-
7,157
35,374
455
(28,672)
-
-
7,157

The restricted funds for the year to 31 December 2023 represent funds raised from appeals for specific projects.

In the year to 31 December 2023 the decision was made to pursue a kennel refurbishment rather than the new kennels on which the Big Bark Appeal was based.

For this reason cash balances were transferred to a new fund, with a minority of donations returned, and capitalised assets were expensed as a disposal.

43

ANIMALS IN DISTRESS (TORBAY AND WESTCOUNTRY)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

24 Analysis of net assets between funds

At 31 December 2024

Tangible fixed assets
Investments
Cash at bank and in hand
Other net current assets
Creditors more than one year
Total
At 31 December 2023

Tangible fixed assets
Investments
Cash at bank and in hand
Other net current assets
Creditors more than one year
Total		 Unrestricted
Funds
£
Restricted
Funds
£
Total
Funds
£
2,498,710
161
2,498,871
464,156
-
464,156
2,351,467
2,617
2,354,084
137,253
-
137,253
(71,445)
-
(71,445)
5,380,141
2,778
5,382,919
Unrestricted
Funds
£
Restricted
Funds
£
Total
Funds
£
2,551,821
1,716
2,553,537
427,608
-
427,608
1,599,928
6,691
1,606,619
363,996
-
363,996
(92,580)
-
(92,580)
4,850,773
8,407
4,859,180

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

Net income/(expenditure) for the reporting period
Adjustments for:
Depreciation charges
Amortisation charges
Investment management fees
Returns on investment and servicing of finance
Loss on disposal of fixed assets
Revaluation of investments
Rent receivable
Interest income
(Increase)/Decrease in stocks
Decrease in debtors
Increase in creditors
Net cash from operating activities		 2024
£
2023
£
523,458
270,978
77,148
74,357
-
-
5,741
3,260
(10,497)
(6,015)
-
25,907
(31,792)
(24,853)
(22,762)
(22,900)
(42,435)
(17,107)
(417)
165
15,877
112,872
4,472
3,522
518,793
420,186

44

ANIMALS IN DISTRESS (TORBAY AND WESTCOUNTRY)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

26 Analysis of Changes in Net Debt

Cash at bank and in hand
Loans due within one year
Loans due after more than one year
Total		 1 Jan
2024
£
1,812,746
1,812,746
(20,170)
(92,580)
(112,750)
1,699,996		 Cash
flows
£
541,338
541,338
(965)
21,135
20,170
561,508		 31 Dec
2024
£
2,354,084
2,354,084
(21,135)
(71,445)
(92,580)
2,261,504

45