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← The Connolly Foundation (UK) Limited

2025-05-31-accounts

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(UK) Limited

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

For the year ended 31 May 2025

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Report of the Trustees for the year ended 31 May 2025

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1. Objectives and activities

Purposes

The Charity’s Memorandum of Association sets out its objectives as

To advance such charitable purposes (according to the law of England and Wales) as the trustees see fit from time to time, in particular but not limited to advancing the education of young people and the welfare of older people in need for the public benefit by making grants and awards.

With the consent of the Charity Commission, the Foundation changed its objects to better reflect the original wishes of its founder.

Aims

The Foundation seeks to make grants to improve people’s lives in Bedfordshire. The Foundation’s founder, the late Michael Connolly, wanted to improve the lives of people in Bedfordshire by giving young people the opportunity to improve their lives and by giving older people the opportunity to live their lives in comfort and dignity. The Foundation works through other institutions rather than giving grants to individuals.

Activities

Grants to benefit younger people are paid to:

During the year the Foundation’s Board reviewed grant funding for younger people and agreed the following priorities for future years.

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The Foundation’s Board agreed five priority areas for funding for older people:

Strategies

Trading subsidiaries

The charity was formed when Michael Connolly donated his shares in his building company, Connolly Holdings plc, to the Foundation. We have made significant steps towards our ambition of becoming a grant-giving charity funding and supporting activities which will improve the lives of many in Bedfordshire. The Board has simplified the group structure over the past year and Connolly Holdings Ltd, Connolly Estates Ltd and Flitchway Settlement Ltd have all now been wound up. As part of the reorganisation, the remaining properties were transferred to Connolly Homes Ltd and to the Foundation. Connolly Homes Ltd continues to trade. The Foundation, together with Connolly Homes Ltd and another subsidiary company owned by Connolly Homes Ltd, are collectively referred to as “The Group”.

The charity invests funds generated by the business activities of The Group and uses the income from the investments to provide grants. Over the next five years the Trustees anticipate that income from invested funds will be sufficient to support a substantial expansion of the grant making programme.

Measurements and criteria

The charity measures the number of students being supported in further and higher education. It asks all successful applicants to keep the charity updated as to how they are using the funds it gives and the progress they are making as a result. Where the charity donates to other charities and schools, the charity agrees with the beneficiary a range of measures and outcomes that will be reported to Connolly Foundation. The Foundation produces an Impact Report annually which looks back at donations made in previous years and assesses the impact.

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Grant making criteria

The Foundation has agreed a grant making policy which can be accessed on its website. An application form is available on our website,

www.connollyfoundation.org.uk/how-to-apply/. The Trustees’ aim is to keep the application process as simple and streamlined as possible.

Public Benefit

The Trustees have complied with section 2(1)(b) of the Charities Act 2011, having due regard for the Charity Commission’s guidance on public benefit when reviewing the Foundation’s aims and objectives, when setting the grant-making policy and in making awards.

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2. Strategic Report

2.1 Achievements and performance

Grants awarded can be analysed as follows:

Grants awarded can be analysed as follows: Grants awarded can be analysed as follows:
2025 2024
£ £
Young people grant
Schools 1,325,281 960,828
Further Education Colleges 285,906 489,185
Other charitable institutions 391,004 352,126
Total Young people grants 2,002,191 1,802,139
Older people grant
Loneliness and isolation 66,574 45,696
Health promotion 18,000 18,000
Transport - 16,000
End of Life Care 60,000 60,000
Access to IT - -
Total Older people grants 144,574 139,696
Total grants 2,146,765 1,941,835

Young people grant

Student Award scheme

The Foundation runs an award scheme available to students attending its eighteen partner secondary schools in the county. The Foundation is working towards bringing all state schools offering A levels in Bedfordshire into the scheme. The Foundation has brought in three more schools for 2025/26 and believes that all schools offering A levels are now included.

It is an award for academic excellence open to students from these schools who are going on to university. The award is available to those studying a range of academic subjects mainly drawn from the core subjects looked for by the Russell Group of universities. The Academic Excellence Award provides a sum of up to £1,000 per

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student depending on the grades achieved. Successful students are invited to reapply after successfully completing each academic year at university.

Dear Connolly Foundation Team,

I am writing to express my sincere gratitude for the bursary I received from the Connolly Foundation. Your generous support has helped me with completing my degree. I am delighted to share that I have now graduated with a 2:1 in Computer Science from the University of Cambridge.

I truly appreciate the investment you made in my education and future. Thank you for your kindness and support. - Academic Bursary recipient

In addition, each of the Foundation’s partner schools are invited to put forward up to six students for the Foundation’s Discretionary Award. This is available to students who do not meet the Foundation’s academic criteria but whom the school believe merit an award.

The number of students receiving Academic and Discretionary grants during the year was 775 (2024: 734).

The Trustees have increased the number of schools with whom The Foundation works with from 17 to 19. The Foundation paid grants totalling £491,250 (2024: £426,500) to students. The increases are mainly due to the inclusion of Luton Sixth Form College for the first time. The Trustees were pleased to be able to increase take-up of awards.

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Graduate tutors

The Foundation is funding recently-graduated students considering teaching as a career who are being employed by Redborne School in Ampthill for two terms to work in 12 schools (2024: 8 schools) in Bedfordshire. The Foundation took the decision that the programme would only work successfully if good quality graduates were recruited, so the scheme varies in size depending on the applications received. The graduates work with teachers to support students on an individual or small group basis, particularly focusing on disadvantaged students and catch-up work. The work of the graduates was very well received in schools and the trustees have recently agreed to fund a further year of support in 2025/26.

The total spending on this intervention was £485,000 (2024: £321,000).

University entry

The Connolly Foundation supports a range of activities to encourage state school pupils to apply for and gain places at the country’s leading universities. This includes:

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Milton Keynes and Cranfield, helps and supports students to make ambitious choices in Higher Education (including degree apprenticeships) and helps them to apply for places and prepare for selection processes. Under the programme in the 2024/25 Academic Year, the proportion of students receiving offers from Russell Group universities after applying for places has increased from 40% to 56%, and the proportion of students who have been successful in applying for degree apprenticeships increased from 42% to 70%.

Weatherfield / Oakbank schools

The Foundation committed £100,000 to two Special Educational Needs schools in Bedfordshire to work jointly to develop specialist therapeutic learning programmes. During the year support was provided to over 100 pupils at the two schools, and the schools were able to run outreach services to support 160 children with special educational needs in mainstream schools in Central Bedfordshire. The trustees are pleased with this project and are keen to disseminate the lessons learned.

Equipment for schools

The Foundation has provided grants to enable schools to buy equipment which will enable them to deliver better quality lessons in STEM subjects. This has included grants for updated IT in classrooms at schools in Bedford and Luton, and equipment to enable more students to opt for Engineering Design at GCSE level at an all-girls school in Luton.

Connolly Foundation trustee Mostaque Koyes visits Challney High School for Girls to see the impact of new equipment for Engineering Design students

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Bedford College, Central Bedfordshire College and Barnfield College

Bedford College is the largest provider of further education in the South East Midlands region and one of the largest employers in Bedfordshire. Over 4,000 students’ study at the College, travelling from across the region. Central Bedfordshire College (CBC) serves communities across southern Central Bedfordshire and Luton local authorities, with campuses in Dunstable, Houghton Regis, Leighton Buzzard and Luton. Barnfield College is a Further Education College with two specialist campuses located in Luton.

The trustees reviewed the awarding of Construction and Engineering bursaries at Bedford, Central Bedfordshire and Barnfield Colleges and were disappointed with the number of students applying. During the year they changed to criteria to allow more students to apply.

Bursaries and capital grants have been paid as follows

Construction Construction
Health & and Welfare
Social Care Social Care Engineering support Equipment
Bursaries Bursaries grant grants Total 2024
No £ No £ £ £ £ No £
Bedford College 108 54,000 36 18,000 75,000 23,376 170,376 208 118,240
Central Beds
College 80 40,000 - - - - 40,000 143 175,767
Barnfield College - - - - - 63,030 63,030 119 194,178
188 94,000 36 18,000 75,000 86,406 273,406 470 488,185

Bedford Giving

Bedford Giving is a group of passionate businesses, charities and other partners, who have all come together to form Bedford Giving with a united single goal – to help create a brighter future for the next generation in Bedford. The Connolly Foundation is a partner in the project. The Foundation donated £100,000 in 2023 and is committed to donating a further £200,000 over the next two years.

The activities have been split between 4 strands of work. The first is what Bedford Giving called the World of Work which was a scheme to identify new employers to provide work experience to children and young adults. This programme had limited impact enabling 25 young people to gain work experience. It is fair to say that

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nationally work experience is under review due to its limited impact and the challenges of managing the programme as it is currently organised.

The second strand is a mentoring programme. 40 students were helped in the first year and it is planned to increase this to 90 this academic year. This programme is managed via a third party and not through the schools.

The third strand has allocated money to improve mental health amongst young people. Bedford Giving is working with a group called Young Minds primarily to train and provide information to people working with young people to enable them to better identify and support young people with mental health issues.

The final strand is looking at what activities are available for children and young people outside school term time. The research revealed that there is a lot of choice of activity but the cost of accessing these services means that some of the most vulnerable people are unable to access them.

Luton Town Football Club and Bedford Blues Rugby Club

Luton Town And Bedford Blues are the most high-profile professional sports clubs in the county. Both have a link to community charities who work with disadvantaged and vulnerable young people to build self-confidence and communication skills to help them in their future lives.

The Bedford Blues Foundation delivers programmes which give young people the opportunity to learn skills in a non-classroom environment. The programme delivers improvements in classroom behaviour and attendance and helps young people to develop communication skills and workplace behaviours.

The Luton Town Football Club Community Trust uses community football as a way to gain the trust of vulnerable people who can then benefit from counselling services which will enable them to make better life choices.

The Level Trust

The Level Trust is a charity which provides support for young people in Luton. The Foundation made a grant to the Level Trust to provide support to young people in Luton who are living in - and affected by - household poverty which, in many cases, can lead to a detrimental effect on their education and learning. Research demonstrates that, without support, these young people are more likely than peers not living in poverty to fail to reach their academic potential, less likely to achieve their aspirations, disengage with their learning and be a greater susceptibility of falling into antisocial behaviour. Put simply, growing up poor significantly reduces the life chances of young people. Through the work The Level Trust’s aim is to remove the barriers that poverty brings to a child's learning. They do this by providing young people living in poverty with the things they need to remove the barriers to be able to fully participate in their education and the opportunities they need to be engaged learners and achieve their aspirations. The Uniform Exchange provides pre-loved

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school uniform to young people through a shop in Luton Town Centre, and a fully accessible online shop. Families can use the exchange by swapping school uniform they no longer need (or have outgrown) for school uniform they need, all for free. Young people with no uniform to swap are referred by one of The Level Trust’s partners to receive uniform without exchange. The Learning Locker provides learning resources including books, stationery, maths equipment, craft materials, games, refurbished laptops, new school shoes, winter coats and hygiene products.

Older people

Loneliness and isolation

Loneliness and isolation are a major issue for older people. During the year the Foundation made donations totalling £66,574 across 8 different charities providing companionship and support to older people across the county. In Luton, the Foundation has worked with Centre for Youth and Community Development to use their youth services premises (which are not used during the day) to provide a venue for older people from south Asian communities to meet and receive help and advice. This has included groups working with Hindu, Muslim and Sikh communities. In Bedford and the surrounding villages, we have given a grant to Tibbs Dementia Foundation to set up support groups in rural areas. Once set up the groups are selfsustaining. The three groups that have been set up to date attract regular attendances of nearly 100 between them.

The Foundation has also funded musical events in Bedford, Ampthill and Houghton Regis which are aimed at people living with dementia. Music has been found to help people with dementia sustain memory and benefit from social contact.

End of Life Care - Sue Ryder Hospice, Moggerhanger, Bedfordshire

The Foundation continues to support the Sue Ryder St Johns Hospice Palliative Care Hub. The £60,000 grant is for funding, specialist care support and advice to patients who prefer to receive care in their own homes as well as supporting families.

We thank the Trustees of The Connolly Foundation for your long-standing and generous support. This will enable us to provide older people who have an end-of-life diagnosis with expert and compassionate community care and allow patients to choose to spend their last moments in the familiar surroundings of their own home. Last year, Sue Ryder's community nurses and healthcare teams provided crucial support for nearly 3,000 people.” Allison Mann, Service Director, Sue Ryder - St. Johns Hospice Moggerhanger, Bedford

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Health promotion

The Foundation supports social landlords that own care homes in Bedfordshire to provide opportunities for exercise for older people. Some comments from participants are shown below.

As a recent newbie I really enjoy the sessions and making new friends lady (88)

I really enjoy the activities it's not just exercise, it makes me use muscles I haven’t used before lady (69)

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Progress against plans for future periods

Our plans for future periods stated in the 31 May 2024 accounts are presented below, together with progress achieved against those plans.

Planned activity Achievements to date
Develop an Environmental We have estimated our carbon footprint and
Plan suggested some ways to reduce it. We are

now looking at proposals and costings.
Consult on services for
young people and decide on
a strategy.
We consulted schools, colleges, councils
and young people to gain a better
understanding of needs. We then discussed
our grants for young people and agreed on
our priorities.
Increase the number of We now offer our bursaries to substantially
schools on the Academic all A level students at state schools in
Awards programme Bedfordshire.
Implement agreed priorities
for grants for older people.		 Spending has increased during the year but
we need to go further to promote our
priorities.

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2.2 Financial Review

ncial Review ncial Review ncial Review
Statement of Financial Activity 2025
2024
£ £
Profits made by trading subsidiaries 5,268,656 487,102
Covenanted transfers from
subsidiaries to the charity
9,684,775 746,910
Investment income 1,681,981 1,669,628
Grants awarded
2,146,765 1,941,835
Balance Sheet 2025
 2024
£ £
Net working capital 41,034,116 36,137,142
Working capital ratio 42.57 32.99

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2.3 Investments

The Trustees have the power to invest in any way they wish, subject to obtaining expert advice.

Income is invested in line with the charity’s reserves policy. Therefore, income is held in cash on deposit and in managed investment funds after review of performance of funds and assessment of the wider economy. At the year end the charity held discretionary funds with Quilter Cheviot Ltd, Charles Stanley Investment Management Ltd and Evelyn Investment Management LLP.

Over the longer term, the Trustees look to achieve a total return of 7 per cent on the value at the start of the year, and to spend 4.5 per cent. This allows a margin to maintain the real terms value of the portfolio.

he value at the start of the year, and to spend 4.5 per cent. This allows a
aintain the real terms value of the portfolio.		 he value at the start of the year, and to spend 4.5 per cent. This allows a
aintain the real terms value of the portfolio.		 he value at the start of the year, and to spend 4.5 per cent. This allows a
aintain the real terms value of the portfolio.		 he value at the start of the year, and to spend 4.5 per cent. This allows a
aintain the real terms value of the portfolio.		 he value at the start of the year, and to spend 4.5 per cent. This allows a
aintain the real terms value of the portfolio.
2025
2024
£ % Of starting
£		 % Of starting

value
value
Total return 2,577,241 3.9% 6,556,563 11.71%
Total spend 2,591,656 4.3% 2,410,288 4.3%

The amount invested at the end of the year was £ 61,204,845 (2024 - £60,525,002).

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2.4 Key risks and uncertainties

The Trustees have considered the major risks to which the charity and its subsidiaries are exposed and have established systems and procedures to mitigate these risks. Trustees review risks at their quarterly meetings. . The main risks affecting the charity and its subsidiaries are as follows

Risk
Mitigation
Lack of Trustees with the right skills Trustees regularly review the skills matrix
of the Board and compare with the skills

needed given the strategic direction of the

Foundation.
Trustees fail to keep charitable
business separate from trading
business		 Governance programme followed.
Trading activity reported at each
Board meeting.
Failure of financial investments Funds are invested in a diverse portfolio
and managed by professional Investment

Managers. Performance of the investment

managers is reviewed regularly. By using

more than one fund manager we diversify

the risk of dealers taking poor

investment decisions.
Fraud Financial controls and processes, due
diligence on requests for funding.
Charitable expenditure is not Financial monitoring, planning programme
controlled. within the expected capacity.
Failure of key projects to have an
impact		 Continued contact with funded
organisations, performance reporting.
Loss of key personnel Plan in advance for potential loss of staff
by documenting processes and improving

archiving.

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2.5 Plans for future periods

In the next financial year, the charity plans to:

2.6 Reserves

The Trustees have chosen to retain funds generated within the group as follows.

Restricted Funds

The Foundation has no restricted funds.

Designated funds

Designated funds are funds which the Trustees have set aside for specific purposes. It is not necessary to set up Designated Funds, but it indicates where Trustees have set funds aside which could otherwise be used to further the charitable causes.

The total funds held by the Group as at 31st May 2025 were £109,613,112 (2024: £104,154,524 as restated). All are unrestricted in both years.

Included within the funds balance are £60,574,281 (2024: £59,914,143) which is invested to provide an income that will fund future donations, £675,478 (2024: £693,707) of fixed assets, and designated funds of £2,707,109 (2024 £2,883,996) which represent anticipated payments in the coming years.

Free reserves that are readily available to spend are £27,746,667 (2024: £26,718,895 as restated).

Over the next five years The Foundation aims to increase funds invested to £100 million. This will be achieved through profits in the trading companies which will be donated to the charity and invested through the investment managers. This will allow the trustees to increase donations budgets to £4.5 million per year.

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2.7 Fundraising

The charity does not seek to raise funds from third parties either by way of grants or donations. All income is derived either from the profits of its trading subsidiaries, returns on investments or legacies.

During the year the Foundation received a legacy of £318,278. This was the final instalment from the sale of land which had been in the estate of the late Michael Connolly. The proceeds of sale were passed to the Foundation as the residuary beneficiary of Mr Connolly’s will.

2.8 Pension Liabilities

The group’s pension assets and liabilities are explained in Note 28 to the accounts. The plan’s assets are valued slightly higher than the present value of its expected future liabilities, and this is not expected to have a significant impact on the activities of the group. The Trustees are currently working to resolve this issue.

2.9 Going Concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

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Governing Document and Constitution

The Connolly Foundation (UK) Limited is a charitable company limited by guarantee. It was incorporated on 16 December 2004 and registered as a charity on 19 April 2005 with the Charity Commission for England and Wales (registered number 1109135). The charity changed its name from The Kathleen and Michael Connolly Foundation (UK) Limited to the Connolly Foundation (UK) Limited on 30 July 2020. The company was established under a Memorandum of Association that sets out the objects and powers of the company and is governed by the rules set out in its Articles of Association.

In the event of the company being wound up the members are required to contribute an amount not exceeding £50.

Recruitment of Trustees

The Articles of Association provide for a minimum of three and a maximum of nine Trustees. There are currently seven Trustees. One third of the Trustees must retire by rotation at each Annual General Meeting.

The Trustees regularly review the range of skills available to them. Should they deem that additional skills and experience are required through new trustees it is expected that the Foundation will advertise for new trustees. Potential new trustees will be interviewed and the Trustees then decide whether new appointments are appropriate.

Remuneration

Trustees are not remunerated for their work as Trustees of the charity. Remuneration of the Directors of the trading subsidiaries is approved annually by the Trustees.

Any payments made to undertakings related to Trustees for services provided by Trustees in their professional capacities are approved by the Board of Trustees. The Trustees concerned are not permitted to vote on these matters.

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Organisational structure

The Board of Trustees manages the charity. The Trustees meet at least four times a year with additional meetings arranged if needed.

The activities and ownership of each subsidiary undertaking is set out in note 16 to the accounts. Each subsidiary is run by a Board of Directors. The Directors of each company report to the Board of Trustees for the administration of the company.

Decision making

The Board of Trustees meet to make decisions on the key strategic issues affecting the charity. Papers are circulated at least a week in advance of each meeting to allow Trustees time to consider the proposals in advance of the meeting. Minutes documenting key decisions are circulated to Trustees after the meeting to check for accuracy and are approved at the following meeting as a true record.

Induction and training of new Trustees

New Trustees undergo an induction programme which includes reading recent accounts and the Memorandum and Articles of Association, together with a detailed briefing. The Trustees come to the Trust with a great deal of experience and knowledge and are expected to keep this up to date. Where appropriate the charity will support this through circulation of relevant literature and opportunities to attend seminars and training events.

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Trustees’ Responsibilities statement

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

Company law requires the Trustees to prepare financial statements for each financial year. 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 charity and the Group and of the incoming resources and application of resources, including income and expenditure, of the charitable group for that period. In preparing these financial statements the Trustees are required to:

to show and explain the charity’s and the Group’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable group. This enables 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 the Group and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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Disclosure of information to auditors

Each of the persons who were Trustees at the time when this Trustees’ Report is approved has confirmed that:

Auditors

part of their business to a newly incorporated limited company, PEM Audit Limited, on 1 September 2025. Accordingly, Peters Elworthy and Moore formally ceased to be the Foundation’s auditor with the Trustees duly appointing PEM Audit Limited to fill the vacancy arising.

A resolution to reappoint PEM Audit Limited as auditor will be put to the members at the annual general meeting.

This report was approved by the Trustees on and 03 February 2026 signed on their behalf by:

M.N.Groves

Chair of trustees

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4. Administrative details

Registered name

The Connolly Foundation (UK) Limited

Registered as a charity in England and Wales, number 1109135

Company number 05315014

Registered office

Manor Farm Court, Lower Sundon, Luton, Bedfordshire LU3 3UZ

Trustees

Y Ashby (appointed 26/11/2024) M A Callanan (resigned 26/11/2024) V S Connolly (resigned 17/7/2025) M N Groves

M Koyes (appointed 26/11/2024) A Lakhani (appointed 26/11/2024) B McGowan (appointed 26/11/2024) C McKeaveney (resigned 18/6/2024) S White (resigned 26/2/2025, re-appointed 17/7/2025) D.Wilkins

Secretary

D J Oldham

Bankers

Barclays Bank plc, Midsummer Place Shopping Centre, Milton Keynes MK9 3GB

Auditor

PEM Audit Limited, Salisbury House, Station Road, Cambridge, CB1 2LA

Investment managers

Quilter Cheviot One Kingsway, London, WC2B 6AN Charles Stanley, 55 Bishopsgate, London, EC2N 3AS Evelyn Partners, 14th Floor, 103 Colmore Row, Birmingham, B3 2BJ

Solicitors

Gunner Cooke, 1 Cornhill, London, EC 3V 3ND

Shoosmiths, The XYZ Building, 2 Hardman Boulevard, Spinningfields, Manchester M3 3AZ

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THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE CONNOLLY FOUNDATION (UK) LIMITED

OPINION

We have audited the financial statements of The Connolly Foundation (UK) Limited (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 May 2025 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

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

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

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

OTHER INFORMATION

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the

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Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE CONNOLLY FOUNDATION (UK) LIMITED (CONTINUED)

audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

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

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of our 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' Report including the Strategic Report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

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

In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent 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 Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Page 25

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE CONNOLLY FOUNDATION (UK) LIMITED (CONTINUED)

AUDITORS' 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 Auditors' 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

As a result of the above risk assessment procedures, we identified the greatest risk of material misstatement on the financial statements arising from irregularities and fraud to be within the potential for management to override controls together with the risk of fraudulent revenue recognition. We considered the risk of fraudulent revenue recognition to be most prevalent in the cut-off of revenue. In response to these identified risks, we designed procedures which included, but were not limited to:

Page 26

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE CONNOLLY FOUNDATION (UK) LIMITED (CONTINUED)

AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED)

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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

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

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

USE OF OUR REPORT

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

Edward Napper (Senior Statutory Auditor)

for and on behalf of PEM Audit Limited Chartered Accountants Statutory Auditors Salisbury House Station Road Cambridge CB1 2LA

Date: 08 February 2026

Page 27

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MAY 2025

Unrestricted
funds		 Unrestricted
funds		 Total funds As restated
Total funds
2025 2025 2024
Note £ £ £
INCOME FROM:
Donations and legacies
4		 318,278 318,278 -
Other trading activities
5		 10,841,037 10,841,037 445,919
Investments
6		 2,830,925 2,830,925 2,829,201
TOTAL INCOME 13,990,240 13,990,240 3,275,120
EXPENDITURE ON:
Raising funds:
7,8
Commercial trading 6,274,268 6,274,268 651,313
Investment management 313,313 313,313 320,334
Charitable activities
9		 2,591,656 2,591,656 2,410,288
TOTAL EXPENDITURE 9,179,237 9,179,237 3,381,935
NET INCOME/(EXPENDITURE) BEFORE
NET GAINS ON INVESTMENTS		 4,811,003 4,811,003 (106,815)
Net gains on investments
15,16		 661,585 661,585 4,886,935
NET INCOME BEFORE TAXATION 5,472,588 5,472,588 4,780,120
Taxation - - (15,664)
NET MOVEMENT IN FUNDS BEFORE
OTHER RECOGNISED GAINS/(LOSSES)		 5,472,588 5,472,588 4,764,456
Actuarial gains on defined benefit pension
schemes
28		 (14,000) (14,000) (44,000)
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:		 5,458,588 5,458,588 4,720,456
Total funds brought forward (as previously
reported)		 101,834,874 101,834,874 97,114,418
Prior year adjustment
22		 2,319,650 2,319,650 2,319,650
Total funds brought forward (as restated) 104,154,524 104,154,524 99,434,068
Net movement in funds 5,458,588 5,458,588 4,720,456
TOTAL FUNDS CARRIED FORWARD 109,613,112 109,613,112 104,154,524

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 33 to 62 form part of these financial statements.

Page 28

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee) REGISTERED NUMBER: 05315014

CONSOLIDATED BALANCE SHEET AS AT 31 MAY 2025

As restated As restated
2025 2024
Note £ £
FIXED ASSETS
Tangible assets 14 675,478 693,707
Investments 16 61,204,845 60,525,002
Investment property 15 6,833,673 6,833,673
68,713,996 68,052,382
CURRENT ASSETS
Stocks 17 17,279,014 14,002,188
Debtors 18 6,493,879 3,169,028
Cash at bank and in hand 18,248,373 20,095,407
42,021,266 37,266,623
CURRENT LIABILITIES
Creditors: amounts falling due within one
year 19 (987,150) (1,129,481)
NET CURRENT ASSETS 41,034,116 36,137,142
Creditors: amounts falling due after more
than one year 20 (135,000) (35,000)
TOTAL NET ASSETS 109,613,112 104,154,524
CHARITY FUNDS
Unrestricted funds 23 109,613,112 104,154,524
TOTAL FUNDS 109,613,112 104,154,524

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

Y L Ashby

Trustee

Date: 07 February 2026

The notes on pages 32 to 61 form part of these financial statements.

Page 29

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee) REGISTERED NUMBER: 05315014

CHARITY BALANCE SHEET AS AT 31 MAY 2025

2025 2025 2024 2024
Note £ £
FIXED ASSETS
Tangible assets 14 670,368 12,338
Investments 16 102,750,434 99,439,792
Investment property 15 6,833,673 -
110,254,475 99,452,130
CURRENT ASSETS
Debtors 18 21,047 1,127,641
Cash at bank and in hand 2,255,966 2,122,058
2,277,013 3,249,699
CURRENT LIABILITIES
Creditors: amounts falling due within one
year 19 (3,346,504) (3,739,227)
NET CURRENT LIABILITIES (1,069,491) (489,528)
Creditors: amounts falling due after more
than one year 20 (135,000) (35,000)
TOTAL NET ASSETS 109,049,984 98,927,602
CHARITY FUNDS
Unrestricted funds 23 109,049,984 98,927,602
TOTAL FUNDS 109,049,984 98,927,602

The Charity's net movement in funds for the year was £10,122,382 (2024 - £4,980,264).

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

Y L Ashby Trustee

Date: 07 February 2026

The notes on pages 32 to 61 form part of these financial statements.

Page 30

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MAY 2025

Note
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash used in operating activities
25
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends, interests and rents from investments
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Net sales/(purchase) of fixed asset investments
NET CASH PROVIDED BY INVESTING ACTIVITIES
CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR
Cash and cash equivalents at the beginning of the year
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
26
The notes on pages 32 to 61 form part of these financial statements		 2025
£
(4,852,457)
2,837,701
4,800
-
162,922
3,005,423
(1,847,034)
20,095,407
18,248,373		 2024
£
(1,627,157)
2,812,108
-
(3,417)
(288,575)
2,520,116
892,959
19,202,448
20,095,407

Page 31

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

1. GENERAL INFORMATION

The Connolly Foundation (UK) Limited is a charitable company limited by guarantee and incorporated in England and Wales. Its registered office is Manor Farm Court, Lower Sundon, Luton, Bedfordshire, LU3 3UZ.

The Group's functional and presentational currency is GBP.

2. ACCOUNTING POLICIES

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Connolly Foundation (UK) Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Charity and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis.

The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.

Details of the restatement are set out in note 22.

2.2 GOING CONCERN

The Trustees have assessed budgets and forecasts of the Charity's financial performance and position to 2031. Based on this assessment, the Trustees continue to prepare the financial statements on a going concern basis. No material uncertainties in relation to going concern have been identified.

Page 32

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

2. ACCOUNTING POLICIES (CONTINUED)

2.3 INCOME

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

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Trading income is recognised to the extent that it is probable that the economic benefits will flow to the Group and can be measured reliably. Trading income from house sales is recognised when the sale is legally complete. Trading income in respect of work performed for local housing associations is recognised as work is carried out by reference to the stage of completion of the contract at the Balance Sheet date when it is reasonably certain that a profit is foreseen. Trading income from the sale of land represents amounts receivable, net of selling expenses, when the sale is legally complete.

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

2.4 EXPENDITURE

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities in proportion to the size of grant giving.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

Governance costs are the costs associated with the governance arrangements of the Charity. These costs relate to constitutional and statutory requirements and include any costs associated with the strategic management of the Charity’s activities.

Page 33

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

2. ACCOUNTING POLICIES (CONTINUED)

2.4 EXPENDITURE (CONTINUED)

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment and included in the designated fund for anticipated grant funding, but not accrued as expenditure.

2.5 TAXATION

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.

A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse. Deferred tax assets and liabilities are discounted.

2.6 TANGIBLE FIXED ASSETS AND DEPRECIATION

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition are included in the measurement of cost.

Freehold land and buildings are not depreciated as the Trustees are of the opinion that the difference between the carrying value and residual value are immaterial. Such properties are subject to an annual impairment review, with any write down being recognised in the Statement of Financial Activities.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following bases:

Page 34

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

2. ACCOUNTING POLICIES (CONTINUED)

2.7 INVESTMENTS

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment.

Investment property is carried at fair value determined annually based on professional advice received and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Financial Activities.

Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated Statement of Financial Activities.

Investments in subsidiaries are valued at cost less provision for impairment.

2.8 STOCKS

Stock, work in progress and land held for development are valued at the lower of cost and net sales proceeds after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

At each Balance Sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Consolidated Statement of Financial Activities.

2.9 DEBTORS

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

2.10 CASH AT BANK AND IN HAND

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

2.11 LIABILITIES AND PROVISIONS

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Statement of Financial Activities as a finance cost.

Page 35

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

2. ACCOUNTING POLICIES (CONTINUED)

2.12 FINANCIAL INSTRUMENTS

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

2.13 PENSIONS

DEFINED CONTRIBUTION PENSION PLAN

The Group operates two defined contribution plans for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in the Consolidated Statement of Financial Activities when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

DEFINED BENEFIT PENSION PLAN

The Group operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.

The liability recognised in the Balance Sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the Balance Sheet date less the fair value of plan assets at the Balance Sheet date (if any) out of which the obligations are to be settled.

The defined benefit obligation is calculated using the projected unit credit method. Annually, the Group engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').

Page 36

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

2. ACCOUNTING POLICIES (CONTINUED)

2.13 PENSIONS (CONTINUED)

The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the Group's policy for similarly held assets. This includes the use of appropriate valuation techniques.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'remeasurement of net defined benefit liability'.

The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:

a) the increase in net pension benefit liability arising from employee service during the period; and b) the cost of plan introductions, benefit changes, curtailments and settlements.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a 'finance expense'.

2.14 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 Group 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. The aim and use of each designated fund is set out in the notes to the financial statements.

3. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Stock and work in progress - management makes judgements and estimates as to the stage of completion of each building contract, which in turn has an affect on the valuation of work in progress at the balance sheet date.

Pension scheme assumptions are set out in note 28.

Page 37

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

4. INCOME FROM DONATIONS AND LEGACIES

Unrestricted
funds
2025
£
Legacies
318,278
TOTAL 2025
318,278
TOTAL 2024
-
5.
INCOME FROM COMMERCIAL TRADING ACTIVITIES
Unrestricted
funds
2025
£
Connolly Homes Limited
10,827,434
Connolly Estates Limited
13,603
Connolly Holdings Limited
-
TOTAL 2025
10,841,037
TOTAL 2024
445,919		 Total
funds
2025
£
318,278
318,278
-
Total
funds
2025
£
10,827,434
13,603
-
10,841,037
445,919		 Total
funds
2024
£
-
-
Total
funds
2024
£
205,753
233,791
6,375
445,919

Page 38

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

6. INVESTMENT INCOME

Unrestricted
funds
2025
£
Investment properties rent
224,348
Listed investment income
1,681,981
Bank and other interest
924,596
TOTAL 2025
2,830,925
TOTAL 2024
2,829,201
7.
EXPENDITURE ON RAISING FUNDS
COMMERCIAL TRADING ACTIVITIES		 Total
funds
2025
£
224,348
1,681,981
924,596
2,830,925
2,829,201		 Total
funds
2024
£
-
1,669,628
1,159,573
2,829,201
Unrestricted
funds
2025
£
Direct costs
5,853,281
Administration costs - other
312,829
Interest and charges
2,250
Administration costs - staff costs
90,269
Administration costs - NI
11,837
Administration costs - pension costs
2,015
Administration costs - depreciation
1,787
TOTAL 2025
6,274,268
TOTAL 2024
651,313		 Total
funds
2025
£
5,853,281
312,829
2,250
90,269
11,837
2,015
1,787
6,274,268
651,313		 Total
funds
2024
£
73,442
302,492
2,204
173,030
23,228
67,900
9,017
651,313

Page 39

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

8. INVESTMENT MANAGEMENT COSTS

Unrestricted
funds
2025
£
Investment management fees
313,313
TOTAL 2025
313,313
TOTAL 2024
320,334		 Total
funds
2025
£
313,313
313,313
320,334		 Total
funds
2024
£
320,334
320,334

9. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Education
Elderly
TOTAL 2025
TOTAL 2024		 Grant
funding of
activities
2025
£
2,002,191
144,574
2,146,765
1,941,835		 Support
costs
2025
£
414,929
29,962
444,891
468,453		 Total
funds
2025
£
2,417,120
174,536
2,591,656
2,410,288		 Total
funds
2024
£
2,236,892
173,396
2,410,288

Page 40

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

9. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)

ANALYSIS OF SUPPORT COSTS

Staff costs
Depreciation
Travel and subsistence
Promotion costs
Legal & professional fees
Bank charges
Premises costs
Subscriptions
Training & recruitment
Printing, postage and stationery
Governance costs
TOTAL 2025
TOTAL 2024
Governance costs
Trustees expenses
Audit fees		 Education
2025
£
229,737
15,335
17,986
19,586
19,255
136
98,039
769
634
755
12,697
414,929
434,753		 Elderly
2025
£
16,589
1,107
1,299
1,414
1,390
10
7,079
56
46
55
917
29,962
33,700		 Total
funds
2025
£
246,326
16,442
19,285
21,000
20,645
146
105,118
825
680
810
13,614
444,891
468,453
2025
£
845
12,769
13,614		 Total
funds
2024
£
381,997
8,913
18,557
22,296
5,143
226
18,673
349
-
-
12,299
468,453
2024
£
-
12,299
12,299

Page 41

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

10. ANALYSIS OF GRANTS

Grants, Education
Grants, Elderly
TOTAL 2025
TOTAL 2024		 Grants to
Institutions
2025
£
2,002,191
144,574
2,146,765
1,941,835		 Total
funds
2025
£
2,002,191
144,574
2,146,765
1,941,835		 Total
funds
2024
£
1,802,139
139,696
1,941,835

ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

During the year, the following material grants were made to institutions.

2025 2024
£ £
ALS Pals - 1,000
Bangladesh Youth - 2,500
Bedford Citizen 6,000 6,000
Buzzer Buses - 10,000
Community Safety 2,200 2,200
DeafBlind 1,174 996
Dilkush Health 2,900 2,500
Ekta Hindu Centre 2,900 2,500
Friends for Life - 10,000
Grand Union Housing - 6,000
Guru Nanak 2,900 2,500
Guru Ravidass 2,900 2,500
Houghton Regis Baptist Church 5,000 -
Khidmat 2,900 2,500
Music24 8,400 -
Peabody Community 12,000 6,000
Respite for Volunteers - 4,000
Sight Concern 5,400 10,000
St Charalambos Luton 1,000 -
Stopsley Baptist Church 10,000 -
Sue Ryder 60,000 60,000

Page 42

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

Tibbs Dementia
Ujala Support Group
Villager Minibus
Total elderly
Academic grants
Att10tive
Bedford College
Bedford Creative Arts
Bedford Giving
Bedford Tigers RLFC
Bedfordshire Opportunities for Learning Disabilities
Blues Foundation
Boxing Saves Lives
Careers and Enterprise
Centre of Youth
Challney High School
Chiltern Academy
Chiltern Teaching School Hub
Community Interest Luton
Daubeney Academy
Diverse Community
English Opera House
Enterprising Youth
Falkes Scouts
FND Careers Hub
Full House Theatre
Grow Your Potential
Kempston Academy
Level Trust
Link to Change
Luton Literature
Luton Town FC Community Trust
Mark Rutherford Upper School
Oak bank School
Out of Class
Peace Child International
Power 2 Inspire
Redborne School
Samual Whitbread
Sandy School		 16,000
2,900
-
144,574
491,250
-
222,876
10,000
100,000
5,000
35,000
30,000
-
-
2,900
14,246
23,800
25,000
29,795
37,400
15,000
-
-
-
-
10,000
15,000
20,395
50,000
5,000
5,000
20,000
10,150
100,000
5,000
-
750
493,854
42,000
2,500		 -
2,500
6,000
139,696
426,500
8,000
295,007
-
100,000
-
-
30,000
10,000
46,000
-
19,655
-
-
-
1,000
-
11,000
5,000
2,500
23,000
-
-
-
-
-
-
-
-
-
-
3,380
1,000
338,648
31,000
-

Page 43

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

Smallpeice Trust
Social Innovation
St Thomas Catholic School
STEMpoint
Teaching grants
The Hygiene Group
Wadham College - Oxford Thinking Project
West Herts College
Yes Futures
YouthScape
Zoological Society
Total education and young people
Less total grant write backs
Total grants
11.
AUDITORS' REMUNERATION
Fees payable to the Charity's auditor for the audit of the Charity's and
subsidiaries' annual accounts
Fees payable to the Charity's auditor in respect of:
Taxation compliance services
All non-audit services not included above		 5,570
7,500
-
29,750
21,000
1,709
70,000
63,030
7,600
-
6,000
2,034,075
(31,884)
2,146,765
2025
£
29,000
2,500
-		 5,060
-
6,965
-
23,000
1,500
70,000
194,178
-
175,000
5,746
1,833,139
(31,000)
1,941,835
2024
£
29,650
4,650
4,850

Page 44

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

12. STAFF COSTS, TRUSTEE REMUNERATION AND THE COST OF KEY MANAGEMENT PERSONNEL

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2025
£
291,910
36,432
22,105
350,447		 Group
2024
£
492,380
58,033
95,742
646,155		 Charity
2025
£
201,641
24,595
20,090
246,326		 Charity
2024
£
319,350
34,805
27,842
381,997

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

Directors (who are trustees)
Administration
Commercial trading activities		 Group
2025
No.
1
3
1
5		 Group
2024
No.
1
3
2
6

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2025 2024
No. No.
In the band £60,001 - £70,000 1 1
In the band £90,001 - £100,000 1 -
In the band £120,001 - £130,000 - 1
In the band £170,001 - £180,000 - 1

The Trustees receive no remuneration in their capacity as Trustees. M A Callanan is remunerated in his capacity as director of the trading subsidiaries, as permitted in the Articles of Association and his salary is in the highest band disclosed above.

No Trustees received reimbursement of expenses during the year (2024 - £nil). Trustees expenses incurred directly by the Charity on behalf of the Trustees amounted to £845 (2024 - £nil). These expenses related to the Trustees' away day meeting.

The key management personnel of the Charity comprise the Trustees of the Charity, the director of the subsidiaries and the Chief Operating Officer of the Charity. Total remuneration attributable to key management personnel is £181,729 (2024 - £331,612).

Page 45

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

13. TAXATION

2025 2024
£ £
Connolly Estates Limited
Corporation tax - 15,664

14. TANGIBLE FIXED ASSETS

GROUP

COST
At 1 June 2024
Additions
Disposals
At 31 May 2025
DEPRECIATION
At 1 June 2024
Charge for the year
On disposals
At 31 May 2025
NET BOOK VALUE
At 31 May 2025
At 31 May 2024		 Freehold
property
£
656,700
-
-
656,700
-
-
-
-
656,700
656,700		 Plant and
machinery
£
77,644
-
(40,000)
37,644
59,872
7,530
(40,000)
27,402
10,242
17,772		 Office
equipment
£
53,500
3,160
(43,979)
12,681
34,265
10,699
(40,819)
4,145
8,536
19,235		 Total
£
787,844
3,160
(83,979)
707,025
94,137
18,229
(80,819)
31,547
675,478
693,707

Page 46

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

14. TANGIBLE FIXED ASSETS (CONTINUED)

CHARITY

COST
At 1 June 2024
Transfers intra group
At 31 May 2025
DEPRECIATION
At 1 June 2024
Charge for the year
Transfers intra group
At 31 May 2025
NET BOOK VALUE
At 31 May 2025
At 31 May 2024		 Freehold
property
£
-
656,700
656,700
-
-
-
-
656,700
-		 Plant and
machinery
£
-
37,644
37,644
-
7,530
19,872
27,402
10,242
-		 Office
equipment
£
21,339
-
21,339
9,001
8,912
-
17,913
3,426
12,338		 Total
£
21,339
694,344
715,683
9,001
16,442
19,872
45,315
670,368
12,338

Page 47

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

15. INVESTMENT PROPERTY

GROUP AND CHARITY

VALUATION
At 1 June 2024 (as restated)
Prior Year Adjustment (note 22)
At 1 June 2024 (as restated)
At 31 May 2025		 As restated
Freehold
investment
property
£
4,514,023
2,319,650
6,833,673
6,833,673

The 2025 valuations were made by the Trustees on an open market value for existing use basis. In valuing the investment property, the Trustees have had to make many assumptions, including the discount rate and timing of cash flows expected to be received.

All investment property is held by the parent.

16. FIXED ASSET INVESTMENTS

GROUP
COST OR VALUATION
At 1 June 2024
Additions
Disposals
Revaluations
Movement in cash at investors
AT 31 MAY 2025		 Listed
investments
(Valuation)
£
59,914,143
10,661,596
(10,732,102)
679,519
51,125
60,574,281		 Other
investments
(Cost)
£
610,859
19,705
-
-
-
630,564		 Total
£
60,525,002
10,681,301
(10,732,102)
679,519
51,125
61,204,845

Page 48

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

16. FIXED ASSET INVESTMENTS (CONTINUED)

CHARITY
COST OR VALUATION
At 1 June 2024
Additions
Disposals
Revaluations
Movement in cash at investors
AT 31 MAY 2025		 Investments
in
subsidiary
companies
(Cost)
£
38,914,790
2,630,799
-
-
-
41,545,589		 Listed
investments
(Valuation)
£
59,914,143
10,661,596
(10,732,102)
679,519
51,125
60,574,281		 Other
investments
(Cost)
£
610,859
19,705
-
-
-
630,564		 Total
£
99,439,792
13,312,100
(10,732,102)
679,519
51,125
102,750,434

PRINCIPAL SUBSIDIARIES

The following were subsidiary undertakings of the Charity:

Names Company Country of incorporation Country of incorporation Holding
number
Connolly Homes Limited 00761425 England and Wales 100%
DB(NI) Realisations Limited 010800(NI) Northern Ireland 100%
Connolly Estates Limited 03743402 England and Wales 100%
The financial results of the subsidiaries for the year were:
Names Income Expenditure Profit/(loss) Net assets
£ £ for the year £
£
Connolly Homes Limited 11,667,740 6,409,804 5,257,936 40,894,121
DB(NI) Realisations Limited - - - 1,189,786
Connolly Estates Limited 13,603 2,883 10,720 -
17. STOCKS
Group Group
2025 2024
£ £
Land in course of development 17,279,014 14,002,188

Page 49

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

18. DEBTORS

DUE AFTER MORE THAN ONE YEAR
Prepayments and accrued income
DUE WITHIN ONE YEAR
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Group
2025
£
-
4,750,000
-
213,360
1,530,519
6,493,879		 Group
2024
£
1,360,436
-
-
206,436
1,602,156
3,169,028		 Charity
2025
£
-
-
-
1,073
19,974
21,047		 Charity
2024
£
-
-
1,098,538
537
28,566
1,127,641

19. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Other creditors
Accruals
Grants accrued - institutional		 Group
2025
£
14,686
-
6,533
-
797,007
168,924
987,150		 Group
2024
£
12,026
-
28,622
5,577
739,260
343,996
1,129,481		 Charity
2025
£
-
3,044,233
6,383
-
126,964
168,924
3,346,504		 Charity
2024
£
-
3,304,293
20,481
5,577
64,880
343,996
3,739,227

Page 50

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

20. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Accrued grants payable to institutions
GRANT COMMITMENTS MOVEMENT
Balance at 1 June 2024
Grant commitments net of write-offs (Note 10)
Payments
BALANCE AT 31 MAY 2025		 Group
2025
£
135,000		 Group
2024
£
35,000		 Charity
2025
£
135,000
2025
£
378,996
2,146,765
(2,221,837)
303,924		 Charity
2024
£
35,000
2024
£
542,380
1,941,835
(2,105,219)
378,996

21. GRANT COMMITMENTS MOVEMENT

22. PRIOR YEAR ADJUSTMENTS

During the current financial year, a review of the accounting treatment of certain property transactions between group entities identified an error in the application of consolidation adjustments in prior periods.

Certain properties were transferred between group entities and initially classified as stock (work-inprogress) with the intention of short-term resale. In line with FRS 102 and the Charity SORP, unrealised profits on these intra-group transactions were eliminated on consolidation.

Subsequently, the strategic intention for these properties changed, and they were reclassified as investment properties to be held for long-term purposes. Under FRS 102 Section 16, investment properties are required to be measured at fair value through profit or loss. At the point of reclassification, the elimination of unrealised profit should have ceased, and the profit should have been recognised in the consolidated financial statements.

This error has been corrected by restating the prior year consolidated balance sheet. The correction results in an increase in investment properties of £2,319,650 and a corresponding increase in consolidated reserves (see note 15). There is no impact on the consolidated statement of financial activities for the current year.

This adjustment has been made in accordance with FRS 102 Section 10 (Accounting Policies, Estimates and Errors), and comparative figures have been restated accordingly.

Page 51

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

23. STATEMENT OF FUNDS

GROUP STATEMENT OF FUNDS - CURRENT YEAR

UNRESTRICTED
FUNDS
DESIGNATED
FUNDS
Anticipated grant
funding
Fixed assets fund
Investment fund
GENERAL
FUNDS
General funds
Subsidiaries
Pension reserve
TOTAL		 As restated
Balance at 1
June 2024
£
2,883,996
693,707
59,914,143
63,491,846
35,186,479
5,476,199
-
40,662,678
104,154,524		 Income
£
-
-
-
-
2,308,897
11,681,343
-
13,990,240
13,990,240		 Expenditure
£
-
-
-
-
(2,904,969)
(6,262,268)
(12,000)
(9,179,237)
(9,179,237)		 Transfers
in/out
£
(176,887)
(18,229)
660,138
465,022
7,057,284
(7,548,306)
26,000
(465,022)
-		 Gains/
(Losses)
£
-
-
-
-
661,585
-
(14,000)
647,585
647,585		 Balance at
31 May 2025
£
2,707,109
675,478
60,574,281
63,956,868
42,309,276
3,346,968
-
45,656,244
109,613,112

Page 52

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

23. STATEMENT OF FUNDS (CONTINUED)

GROUP STATEMENT OF FUNDS - PRIOR YEAR

UNRESTRICTED
FUNDS
DESIGNATED
FUNDS
Anticipated grant
funding
Fixed assets fund
Investment fund
GENERAL
FUNDS
General funds
Subsidiaries
Pension reserve
TOTAL
UNRESTRICTED
FUNDS
Designated funds		 Balance at
1 June 2023
(as restated)
£
2,957,746
708,220
55,380,320
59,046,286
34,651,775
5,736,007
-
40,387,782
99,434,068		 Income
£
-
-
-
-
1,861,463
1,413,657
-
3,275,120
3,275,120		 Expenditure
£
-
-
-
-
(2,515,044)
(865,555)
(17,000)
(3,397,599)
(3,397,599)		 Transfers
in/out
£
(73,750)
(14,513)
4,533,823
4,445,560
(3,698,650)
(807,910)
61,000
(4,445,560)
-		 Gains/
(Losses)
£
-
-
-
-
4,886,935
-
(44,000)
4,842,935
4,842,935		 Balance at
31 May 2024
(as restated)
£
2,883,996
693,707
59,914,143
63,491,846
35,186,479
5,476,199
-
40,662,678
104,154,524

Anticipated grant funding

These are funds set aside to settle anticipated grant applications.

Fixed asset fund

Represents fixed assets that are primarily used by the Charity's subsidiaries to generate profits that can be donated to the Charity.

Investment fund

Represents listed investments that are designated to generate sustainable investment income for the Charity's grant making activities.

Transfers represent gift aid distributions from the Charity's subsidiaries, transfer of funds into the defined benefit pension scheme and movements in the value of fixed assets and listed investments.

Page 53

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

23. STATEMENT OF FUNDS (CONTINUED)

CHARITY STATEMENT OF FUNDS - CURRENT YEAR

Balance at 1
June 2024		 **Income ** Expenditure Transfers Gains/(Losses) Transfers Gains/(Losses) Balance at
31 May 2025
£ £ £ £ £ £
UNRESTRICTED
FUNDS
DESIGNATED
FUNDS
Anticipated grant
funding		 2,883,996 - - (176,887) - 2,707,109
Fixed asset fund 12,338 - - 658,030 - 670,368
Investment fund 59,914,143 - - 660,138 - 60,574,281
62,810,477 - - 1,141,281 - 63,951,758
GENERAL FUNDS
General fund 36,117,125 12,132,092 (2,904,969) (1,141,281) 895,260 45,098,227
TOTAL 98,927,602 12,132,092 (2,904,969) - 895,260 109,049,985

Page 54

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

CHARITY STATEMENT OF FUNDS - CURRENT YEAR (CONTINUED)

CHARITY STATEMENT OF FUNDS - PRIOR YEAR

Balance at 1
June 2023		 Income Expenditure Income Expenditure **Transfers ** Gains/(Losses) Balance at
31 May 2024
UNRESTRICTED
FUNDS
DESIGNATED
FUNDS
Anticipated grant
funding		 2,957,746 - - (73,750) - 2,883,996
Fixed asset fund 499 - - 11,839 - 12,338
Investment fund 55,380,320 - - 4,533,823 - 59,914,143
58,338,565 - - 4,471,912 - 62,810,477
GENERAL FUNDS
General fund 35,608,773 2,823,951 (2,730,622) (4,471,912) 4,886,935 36,117,125
TOTAL 93,947,338 2,823,951 (2,730,622) - 4,886,935 98,927,602

24. ANALYSIS OF NET ASSETS BETWEEN FUNDS GROUP ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR

Unrestricted
funds
2025
£
Tangible fixed assets
675,478
Fixed asset investments
61,204,845
Investment property
6,833,673
Current assets
42,021,266
Creditors due within one year
(987,150)
Creditors due in more than one year
(135,000)
TOTAL
109,613,112		 Total
funds
2025
£
675,478
61,204,845
6,833,673
42,021,266
(987,150)
(135,000)
109,613,112

Page 55

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

24. ANALYSIS OF NET ASSETS BETWEEN FUNDS (CONTINUED)

GROUP ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR

Tangible fixed assets
Fixed asset investments
Investment property
Debtors due after more than one year
Current assets
Creditors due within one year
Creditors due in more than one year
TOTAL		 (As restated)
Unrestricted
funds
2024
£
693,707
60,525,002
6,833,673
1,360,436
35,906,187
(1,129,481)
(35,000)
104,154,524		 As restated
Total funds
2024
£
693,707
60,525,002
6,833,673
1,360,436
35,906,187
(1,129,481)
(35,000)
104,154,524

CHARITY ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR

Unrestricted
funds
2025
£
Tangible fixed assets
670,368
Fixed asset investments
102,750,434
Investment property
6,833,673
Current assets
2,277,013
Creditors due within one year
(3,346,504)
Creditors due after one year
(135,000)
109,049,984		 Total
funds
2025
£
670,368
102,750,434
6,833,673
2,277,013
(3,346,504)
(135,000)
109,049,984

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Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

CHARITY ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR

Unrestricted
funds
2024
£
Tangible fixed assets
12,338
Fixed asset investments
99,439,792
Current assets
3,249,699
Creditors due within one year
(3,739,227)
Creditors due after one year
(35,000)
98,927,602		 Total
funds
2024
£
12,338
99,439,792
3,249,699
(3,739,227)
(35,000)
98,927,602

25. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the year (as per Statement of Financial Activities)
ADJUSTMENTS FOR:
Depreciation charges
Gains on investments
Dividends, interests and rents from investments
Profit on the sale of fixed assets
Increase in stocks
(Increase)/decrease in debtors
Decrease in creditors
Decrease in pension liability
NET CASH USED IN OPERATING ACTIVITIES		 Group
2025
£
5,472,588
18,229
(842,765)
(2,830,925)
(4,800)
(3,276,826)
(3,331,627)
(42,331)
(14,000)
(4,852,457)		 Group
2024
£
4,764,456
17,930
(4,245,321)
(2,829,201)
-
(394,535)
1,417,638
(314,124)
(44,000)
(1,627,157)

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Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

26. ANALYSIS OF CASH AND CASH EQUIVALENTS

Cash in hand
TOTAL CASH AND CASH EQUIVALENTS		 Group
2025
£
18,248,373
18,248,373		 Group
2024
£
20,095,407
20,095,407

27. ANALYSIS OF CHANGES IN NET DEBT

Cash at bank and in hand At 1 June
2024
£
20,095,407
20,095,407		 Cash flows
£
(1,847,034)
(1,847,034)		 At 31 May
2025
£
18,248,373
18,248,373

28. PENSION COMMITMENTS

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £22,105 (2024 - £95,742). Contributions totalling £Nil (2024 - £12,244) were payable to the fund at the Balance Sheet date and are included in creditors.

The Group operates a defined benefit pension scheme.

The Connolly Group Pension Fund ("the Fund") provides benefits for some of the employees of the Charity and some employees of fellow group companies.

The Fund became “paid up” in 2003, since when members have built up no further benefits. The assets of the Fund are administered by trustees and are independent of the companies’ finances. Contributions by the participating employers are paid to the Fund in accordance with the recommendations of an independent actuarial advisor.

The funding plan is for the Fund to hold assets equal to the value of the benefits earned by employees, based on a set of assumptions used for funding the Fund. The funding assumptions differ from the assumptions used to calculate the figures for these accounts, and therefore produce different results. If there is a shortfall against this funding plan, then the participating employers and trustees agreed on deficit contributions to meet this deficit over a period. As the Fund was in a surplus at 1 October 2023, no deficit contributions were required.

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Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

28. PENSION COMMITMENTS (CONTINUED)

The results of the formal actuarial valuation as at 1 October 2023 were updated to the accounting date by an independent qualified actuary in accordance with FRS102. As required by FRS102, the value of the defined benefit liabilities has been measured using the projected unit method and both the assets and the liabilities include the value of those pensions in payment which are secured with insured annuities.

The results, based on assumptions used for FRS102, are as follows:

Principal actuarial assumptions at the Balance Sheet date (expressed as weighted averages):

Price inflation (RPI)
Price inflation (CPI)
Discount rate
Pension increase in payment
- RPI, subject to a maximum of 5% pa
- CPI, subject to a maximum of 5% pa
- Fixed 3%
Pension increases in deferment
Mortality rates
- For a male aged 65 now
- At 65 for a male aged 45 now		 At 31 May
2025
%
3.0
2.2
5.7
2.9
2.2
3.0
2.2
At 31 May
2025
Years
21.4
22.4		 At 31 May
2024
%
3.2
2.4
5.1
3.1
2.4
3.0
2.4
At 31 May
2024
Years
21.5
22.5

The Group's share of the assets in the scheme was:

Equity instruments
Debt instruments
Property
All other assets
TOTAL FAIR VALUE OF ASSETS		 At 31 May
2025
£
467,000
689,000
292,000
540,000
1,988,000		 At 31 May
2024
£
471,000
738,000
279,000
770,000
2,258,000

Page 59

Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

28. PENSION COMMITMENTS (CONTINUED)

The total loss on the assets over the year was £210,000 (2023/24 - a gain of £194,000).

The amounts recognised in the Consolidated Statement of Financial Activities are as follows:

2025
£
Running costs
12,000
Movements in the present value of the defined benefit obligation were as follows:
2025
£
Opening defined benefit obligation
1,215,000
Interest on obligation
60,000
Actuarial gains/losses
236,000
Benefits paid
(74,000)
CLOSING DEFINED BENEFIT OBLIGATION
1,437,000		 2024
£
17,000
2024
£
1,202,000
62,000
33,000
(82,000)
1,215,000

Movements in the fair value of the Group's share of scheme assets were as follows:

Opening fair value of scheme assets
Running costs
Interest on plan assets
Actuarial return less interest on plan assets
Contributions by the employer
Benefits paid
CLOSING FAIR VALUE OF SCHEME ASSETS		 2025
£
2,258,000
(12,000)
113,000
(323,000)
26,000
(74,000)
1,988,000		 2024
£
2,102,000
(17,000)
110,000
84,000
61,000
(82,000)
2,258,000

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Docusign Envelope ID: 036DB132-5ADF-417B-982E-A8B9B2E65F5E

THE CONNOLLY FOUNDATION (UK) LIMITED (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

28. PENSION COMMITMENTS (CONTINUED)

Fair value of plan assets
Present value of plan liabilities
Amount not recognised due to asset limit		 2025
£
1,988,000
(1,437,000)
(551,000)
-		 2024
£
2,258,000
(1,215,000)
(1,043,000)
-

The plan does not invest directly in property occupied by the Group or in financial securities issued by the Group.

29. RELATED PARTY TRANSACTIONS

During the year, the Foundation undertook a group reorganisation which resulted in the winding-up of three subsidiary undertakings: Connolly Holdings Limited (direct subsidiary), Connolly Estates Limited, and Flitchway Settlement Limited (both indirect subsidiaries).

The balances outstanding at the end of the prior year were as follows:

Connolly Holdings Limited - £942,213 due from the Foundation Connolly Estates Limited - £Nil Flitchway Settlement Limited - £156,325 due from the Foundation

The balances were settled during the year and, as a result of the entities being wound up, there were no balances outstanding as at 31 May 2025.

At the year end, an amount of £3,044,233 (2024 - £3,304,293) was due to Connolly Homes Limited, an indirect subsidiary undertaking.

Transactions with the Trustees are disclosed in note 12. There are no other related party transactions.

Page 61