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2025-12-31-accounts

Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

Registered number: 04921852 Charity number: 1109276

INSTITUTE OF IMAGINATION

UNAUDITED

ANNUAL TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

CONTENTS

Page
Legal and administrative information 1
Trustees' Report 2 - 11
Independent Examiner's Report 12 - 13
Consolidated Statement of Financial Activities 14
Consolidated Balance Sheet 15 - 16
Charity Balance Sheet 17 - 18
Cash flow statement 19
Notes to the Financial Statements 20 - 37

Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

LEGAL AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2025

Trustees

B J Demeroutis, Chair

M Dorion T Gilbert

A Greenberg (resigned 23 September 2025)

B Koby C Metcalfe (resigned 22 January 2026) S Sotomey

C Tavernier

D Uehlein

Company registered number

04921852

Charity registered number

1109276

Registered office

School 360 5 Sugar House Lane London E15 2QS

Chief executive officer

M A Morales

Accountants

Peters Elworthy & Moore Salisbury House Station Road Cambridge CB1 2LA

Bankers

Coutts & Co 440 Strand London WC2R 0QS

Solicitors

Joelson JD LLP 2 Marylebone Road London NW1 4DF

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Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2025

Introduction by the Chair of Trustees

2025 has been a year defined by focus, resilience and steady momentum.

In a continued challenging funding environment, the Institute of Imagination remained clear about what matters most: delivering high-quality, imaginative learning experiences for children who need them most, while strengthening the partnerships and financial foundations that make that work sustainable.

Last year we stepped confidently into a leadership role nationally and locally, leading The LEGO Groupsupported Power of Play consortium in Tower Hamlets, deepening our educator programmes, and sharpening our fundraising strategy to build a more diverse and resilient income base.

Moreover, following year end, the Charity secured a significant five-year investment from The National Lottery Community Fund, strengthening our long-term financial outlook and enabling expansion of our place-based work into additional UK communities.

This investment reflects growing national confidence in the Charity’s place-based approach to creative and STEAM learning and supports our transition from local programme delivery toward wider UK implementation.

So I am proud of the discipline and determination shown by our team and trustees. We have held quality high, managed costs carefully, and continued to grow our reach and influence. Most importantly, thousands of children have experienced the joy, confidence and creativity that come from learning through play and imagination.

Basil Demeroutis Chair of Trustees

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Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

OBJECTIVES AND ACTIVITIES

Our Purpose

Institute of Imagination (iOi) exists to unlock the power of imagination to improve children’s life chances.

Too many children are being left behind. Across the UK, creativity and problem-solving are increasingly squeezed out of a test-driven curriculum, limiting the very skills young people need to succeed in a rapidly changing world. Children from low-income families face fewer opportunities to explore, make and experiment, and by secondary school they are already falling an average of 19 months behind their peers.

At the same time, the country faces a shortfall of 173,000 STEM workers while hands-on, practical learning continues to decline. Only 25% of the STEM workforce is female, and disadvantaged children are 44% less likely to achieve Level 3 STEM qualifications. Through inclusive, play-based STEAM learning designed for all children, we work to widen participation in fields where girls and other underrepresented groups remain significantly excluded. Talent is everywhere, but access is not.

We believe imagination is not an optional extra; it is a catalyst for change. It enables children to think critically, build confidence, solve problems creatively and see new possibilities for their futures.

Our Mission

We design and deliver learning experiences across the arts, sciences and digital technologies that empower children today to believe they can build a just, fair and sustainable world tomorrow.

Our Approach

Working at the intersection of STEAM learning and community engagement, we focus on two pillars every child needs to thrive: skills and aspiration. Through creative, play-based and hands-on experiences, we build children’s cognitive, social and emotional capabilities while broadening their sense of what is possible.

In particular, we prioritise children from underserved and underrepresented communities, ensuring that those who stand to benefit most are at the heart of our work.

2025 at a Glance

Programme and reach highlights

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Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

Delivering Impact

Place-based transformation through Power of Play

In 2025 we moved from partner to Consortium Lead of the LEGO Foundation–funded Power of Play programme, coordinating delivery across schools, families and community partners in Tower Hamlets.

Working alongside Save the Children, Young V&A, EasyPeasy and Ambition Aspire Achieve, we strengthened a whole-ecosystem approach to learning through play: in classrooms, homes, online and neighbourhood spaces.

Beyond the numbers listed above, the shift we see is cultural. Teachers report greater confidence integrating play into formal learning, and families feel better equipped to support their children’s development at home.

This approach is embedding learning through play as a long-term practice across a borough, not just as a oneoff intervention. The success of this consortium-led, place-based model has informed national expansion supported by investment from The National Lottery Community Fund, enabling replication of this approach across multiple UK regions.

“We couldn’t wish for a better partner than the iOi. Their drive, passion and creativity are fundamental to our work, enabling us to engage more children and create an even greater impact. As a result, children are growing more confident, finding their voice, building new skills, and starting to dream bigger about their futures.” Sarah Macshane, Social Responsibility UK, The LEGO Group.

Teacher development: Creative Sparks

Our Creative Sparks programme continued to grow as a high-quality, evidence-informed professional development offer for educators.

In 2025 we worked with two cohorts of 59 teachers in total, equipping them with tools to design more exploratory, creative and inclusive classrooms.

Teachers reported:

As one participant shared: “It’s arguably the most engaging CPD I’ve ever done”.

By investing in teachers, we multiply our impact across thousands of children each year.

Community creativity and events

Our My Big Idea events continue to act as accessible entry points for families.

Our first 2025 event attracted over 200 participants, connecting children with hands-on design and engineering challenges and strengthening local relationships.

These experiences reinforce our belief that imagination flourishes when learning is joyful, social and visible in the community.

Children themselves describe the difference creativity makes:

“The world needs innovation and, more importantly, innovative people. Imagination and creativity are exactly what’s needed to succeed.” Student, 10, St Luke’s Primary School, Newham

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Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

Advocacy and Sector Influence

As a Specialist Commissioner and member of the Raising The Nation National Play Commission, our CEO contributed to shaping recommendations for a National Play Strategy for England. Through his role, he positioned iOi as a sector voice on play-based learning, connecting us to influential stakeholders and further embedding our thought leadership in education reform. The highlight of this work was the writing, production and delivery of the Everything to Play For Report by The National Play Commission which was presented to parliament in 2025.

Looking Ahead

Approaching its twentieth anniversary, the Institute of Imagination is transitioning from programme innovation toward sustained systems impact and national reach.

In 2026, the organisation enters its next phase with strengthened partnerships, increased geographic reach and improved multi-year income visibility.

Our strategic priorities are to:

In early 2026, we secured a significant new grant from The National Lottery Community Fund, confirming delivery of a five-year programme across London, Belfast and Doncaster, with planned expansion into two additional locations in Years 3 and 4. The programme has a total value of £2.38 million, of which £1.3 million will be delivered by the Institute of Imagination over five years through its consortium leadership role. Payments commence in April 2026 on a six-monthly basis.

This award provides important forward funding certainty and enables the Charity to extend its place-based learning model to new communities while strengthening long-term programme sustainability. This investment further strengthens the Charity’s role as a national consortium lead and supports delivery at increased geographic scale.

However, the challenges facing children remain urgent. Creativity, confidence and problem-solving skills have never mattered more, especially when it comes to STEAM learning. With sustained support from partners, funders and communities, the Institute of Imagination is well positioned to reach significantly more children and educators in the years ahead while maintaining programme quality and financial discipline.

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Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

STRUCTURE, GOVERNANCE, AND MANAGEMENT

The Charity is a company limited by guarantee without share capital and is governed by its memorandum and articles of association. The charity owns the entire share capital of IOI Enterprise Limited, the principal activity of which is the delivery of commercial programmes that ultimately benefit the charity financially and reputationally.

The Trustees who served during the year and at the date of signing, were:

None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

New Trustees are appointed with a view to maintaining an appropriate balance of skills and experience. Appointments of Trustees are reviewed by a senior sub-committee of the Board together with members of Management and Leadership and ratified by the Board of Trustees. Trustees hold office for a fixed term of 3 years with a maximum of 6 years with the extensions beyond this by exception only. All Trustees receive information about their responsibilities as a part of their induction. Training is provided to existing Trustees as and when the need arises.

The Charity’s approach to fundraising is to work with our Trustees and existing supporters to identify new sources of funds and then engage and inspire them with our work. Our focus is on statutory, corporates, trusts and foundations, and major donors as well as generating income from events. We seek to build long-term relationships with our supporters demonstrating a high social return on investment. We do not currently use commercial participators or external fundraisers. We are registered with the Fundraising Regulator and follow applicable law and recognised standards.

The Trustees have paid due regard to the public benefit guidance published by the Charity Commission.

Day to day management responsibilities in 2025 were carried out by the CEO and other key management personnel in the Director group, who are rewarded at rates competitive for the sector.

Levels of delegated authority, from Trustees to management have been detailed in the Financial Policies and Procedures document. Commitment levels have been set as follows:

The authority limits were reviewed by the Finance and Advancement Committee and approved by the Trustees.

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Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

Public Benefit Statement

The Institute of Imagination is dedicated to unlocking the power of imagination to enhance the life chances of children, particularly those from underserved and underrepresented communities. We are committed to ensuring that our activities provide a tangible public benefit, as outlined by the Charity Commission. Our programs not only improve educational outcomes but also inspire children to aspire to careers in STEAM fields, thereby contributing to their long-term personal and professional development. By focusing on play-based learning and creative engagement, we empower children to develop essential skills that will serve them throughout their lives.

The Trustees are committed to upholding the principles of public benefit in all our activities, ensuring that our work continues to make a meaningful difference in the lives of children and educators alike.

Provision of annual report and basis of preparation

The Trustees, who are directors for the purposes of company law, provide the annual report together with the financial statements of the charitable group and company for the year ended 31 December 2025.

The financial statements have been prepared in accordance with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102 second edition - October 2019) (effective 1 January 2019). The Trustees have chosen to take advantage of the small company’s exemption from preparing a strategic report.

Principal risks and mitigations

The Trustees have considered the principal strategic, operational and financial risks facing the Charity through its established risk management framework.

The most significant risk relates to financial sustainability, including the Charity’s ability to secure sufficient income and maintain an appropriate balance of restricted and unrestricted funding in a challenging external funding environment. This risk is mitigated through active income diversification, forward financial planning and regular monitoring of performance against budget and forecasts. This risk is further mitigated by the securing of significant multi-year funding commitments, including a five-year award from The National Lottery Community Fund.

As programme activity and strategic partnerships continue to develop, Trustees recognise risks relating to organisational capacity and resilience, including workforce sustainability, retention of organisational knowledge and the delivery of programmes within available resources. These risks are managed through workforce planning, strengthened operational oversight and ongoing review of delivery commitments.

The Charity’s increasing reliance on digital systems and emerging technologies introduces risks relating to cybersecurity, data protection and technological capability. Appropriate controls, policies and system oversight are in place to mitigate these risks and are subject to regular review.

Trustees also recognise reputational and delivery risks, including safeguarding, health and safety, programme quality and partner confidence. These are mitigated through established safeguarding procedures, governance oversight and robust programme management and monitoring arrangements.

Financial performance and liquidity are closely monitored throughout the year. In lower-income scenarios, Trustees are satisfied that expenditure can be deferred or adjusted without permanent detriment to the Charity’s ability to deliver its charitable objectives.

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Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

Fundraising & Income Generation

The external funding environment remained highly competitive throughout 2025. Leadership therefore maintained a strong focus on disciplined cost management, active pipeline oversight and continued diversification of income sources.

Building on commitments outlined in the previous Annual Report, the Charity successfully strengthened its fundraising infrastructure and broadened income generation activity. The Institute of Imagination now operates a diversified five-pillar income model:

  1. Corporate partnerships

  2. Trusts and foundations

  3. High-net-worth individuals

  4. Consultancy and commercial opportunities

  5. Events and philanthropic engagement

During the year the Charity:

The National Lottery award materially strengthens forward income visibility and supports delivery across multiple UK regions from 2026 onwards. Initial income of approximately £193,000 is expected p.a. across Years 1–2, with increased investment in subsequent years aligned to programme expansion.

This progress reflects a deliberate shift toward longer-term, multi-year funding partnerships that balance innovation with organisational stability.

Together, these developments demonstrate progress toward a more predictable and risk-balanced income profile supported by long-term institutional partnerships.

The Charity continues to maintain rigorous fundraising governance. Pipeline performance and income forecasts are reviewed monthly by the Finance Committee, and fundraising activity operates in accordance with applicable law and recognised standards. The Institute of Imagination remains registered with the Fundraising Regulator.

Our objective remains a balanced funding portfolio combining restricted programme investment with increased unrestricted income capable of supporting organisational resilience and with a key focus on the future growth of our reserves.

“Supporting the iOi has been genuinely transformative, not just for the children, but for me too. I’ve seen firsthand how my support helps unlock potential in young people who might otherwise be overlooked. In return, I get something priceless: the joy of seeing children thrive, and the deep satisfaction of knowing I’ve played a part in shaping brighter, more imaginative futures.” Karen Jankel, Donor

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Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

FINANCIAL REVIEW

2025 income was slightly lower than 2024, however the Charity moved into 2026 having already confirmed 76% of the 2026 budgeted income:

The annual cost base has been streamlined without compromising quality or reach, enabling us to deliver programmes that strengthen core skills for tens of thousands of children each year.Notwithstanding, during the year, the principal source of funding was donations.

Total income of £512,281 (2024: £572,531) including donations of £477,002 (2024: £557,686) used to fund our programmes and our operating costs. Expenditure of £527,684 (2024: £638,069) consisted of raising funds £108,031 (2024: £171,007) and charitable activities of £419,653 (2024: £467,062) relating to programme activity.

The Balance Sheet shows cash at bank of £742,227 as at 31 December 2025. £617,721 of this is LEGO funding received in advance for 2026 programme delivery, as is included in Creditors: amounts falling due within one year. iOi acts as agent for £367,555 of this amount payable to grant partners, with the remaining £250,166 retained for iOi's own programme delivery. Under agency accounting (SORP FRS 102 paragraph 16.6), the grant partners' share is excluded from income, expenditure and reserves in these financial statements.

Reserves

It is the policy of the Charity to maintain unrestricted free reserves equivalent to three to six months of operating expenditure. Operating expenditure was carefully managed during 2025 and, at current spend levels, equates to a revised target range of £116,030–£232,060 as at 31 December 2025 (2024: £132,000–£264,000).

While the overall level of reserves has not materially increased against lower expenditure, existing reserves at year end provided coverage of less than three months of operating spend. This position, which has persisted for several years, reflects the timing of grant receipts, the restricted nature of much of the Charity’s income, and the start-up profile of certain projects.

The Trustees consider this temporary situation manageable, as the Charity can continue to meet its liabilities as they fall due. Holding reserves at this level enables the Charity to manage timing differences in income, absorb risk, and meet its obligations while continuing to deliver its charitable objectives.

To address the persistent shortfall and return reserves to the target range, the Finance Committee has reviewed and approved a multi-year financial plan, incorporating prudent forecasts, proactive income diversification, and appropriate cost controls. This demonstrates a feasible plan to rebuilding reserves to the agreed target range by 31 December 2026, subject to ongoing monitoring and adjustment. The Trustees and Finance Committee will track progress against this plan at each meeting, with reserves and cash flow remaining standing agenda items.

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Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

Investment Policy

At the end of 2025 and 2024, the Charity held no fixed asset investments, any surpluses are held in short term cash deposits.

When funds allow, the charity may invest in a portfolio of investment products. The Charity will not invest directly in sectors that it deems in conflict with its charitable mandate and objectives, notably arms, pornography, and tobacco. The Charity, through investments in fixed income and equity mutual funds, exchange traded funds (ETFs) and/or other investment products, recognises that it may have indirect exposure to some, or all, of these sectors. However, further to consultation with its investment advisers and in the context of the overall holdings of these investment products, the Charity is of the view that its exposure to these sectors, to the extent it exists, is very small.

The charity will continually revalue its portfolio and be vigilant against exposure to sectors it deems inappropriate. Once the capital base of the charity allows for it, the Finance & Advancement Committee will consider dedicated Socially Responsible Investing (SRI) products and assess whether these are appropriate for the portfolio in terms of diversification, costs, and risk profile. Long term, it is the ambition of the Institute of Imagination to move closer towards “pure” SRI products.

Going Concern

The Trustees met on 16 March 2026 to consider whether the Institute of Imagination should prepare its financial statements on a going concern basis. They concluded it is appropriate to do so, as 76% of the 2026 budgeted income was confirmed before the start of 2026, likely funders have been identified for the remaining 27%, and bids have already been submitted for 2026 and 2027 potential funds.

iOi maintains an adaptable cost structure with tight cost controls. The Trustees are satisfied that iOi remains a going concern for at least twelve months from the date of approval of these financial statements.

The Trustees monitor cash flow closely and will continue to adjust the cost base and income generation plans to ensure the charity remains financially viable while delivering its charitable objectives.

The Trustees additionally note the confirmation of multi-year National Lottery funding commencing in April 2026, further supporting the assessment that the Charity remains a going concern.

And finally

None of our achievements would be possible without the commitment of our outstanding team, Trustees, donors, partners and supporters. Their belief in our work continues to drive our impact forward.

On behalf of the Trustees and staff at the Institute of Imagination, and everyone who benefits from our programmes, we offer our heartfelt thanks to our generous supporters.

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Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

TRUSTEES' RESPONSIBILITY STATEMENT

The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the Trustees are required to:

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

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by order of the members of the board of Trustees and signed on their behalf by:

B J Demeroutis Chair Date: 07 May 2026

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Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2025

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF INSTITUTE OF IMAGINATION ('the Group')

I report to the charity Trustees on my examination of the consolidated accounts of the Group comprising the Institute of Imagination ('the parent Charity') and its subsidiary undertaking for the year ended 31 December 2025.

RESPONSIBILITIES AND BASIS OF REPORT

As the Trustees of the parent Charity (and its directors for the purposes of company law) you are responsible for the preparation of the consolidated accounts of the Group in accordance with the requirements of the Companies Act 2006 ('the 2006 Act') and you have chosen to prepare consolidated accounts for the Group. You are satisfied that the accounts of both parent Charity and the Group are not required by either company or charity law to be audited and have chosen instead to have an independent examination.

Having satisfied myself that the consolidated accounts are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Group's accounts carried out under section 152 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 152(5)(b) of the 2011 Act.

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently I express no option as to whether the consolidated accounts present a 'true and fair' view and my report is limited to those specific matters set out in the independent examiner's statement.

INDEPENDENT EXAMINER'S STATEMENT

Since the Trustees have opted to prepare consolidated accounts for the Group your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the parent Charity and its subsidiaries as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].

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Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Charity's Trustees those matters I am required to state to them in an Independent Examiner's Report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the parent Charity and the Charity's Trustees as a body, for my work or for this report.

Signed: Dated: 07 May 2026

Nikki Loan FCA

PETERS ELWORTHY & MOORE

Chartered Accountants Salisbury House Station Road Cambridge CB1 2LA

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Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

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

Note
INCOME FROM:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investments
7
TOTAL INCOME
EXPENDITURE ON:
Raising funds
8
Charitable activities
9
TOTAL EXPENDITURE
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward
Net movement in funds
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
2025
£
198,990
9,750
22,442
3,087
234,269
108,031
127,017
235,048
(779)
65,354
(779)
64,575		 Restricted
funds
2025
£
278,012
-
-
-
278,012
-
292,636
292,636
(14,624)
50,000
(14,624)
35,376		 Total
funds
2025
£
477,002
9,750
22,442
3,087
512,281
108,031
419,653
527,684
(15,403)
115,354
(15,403)
99,951		 Total
funds
2024
£
557,686
12,370
-
2,475
572,531
171,007
467,062
638,069
(65,538)
180,892
(65,538)
115,354

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 20 to 37 form part of these financial statements.

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Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION REGISTERED NUMBER: 04921852

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2025

Note
FIXED ASSETS
Tangible assets
12
CURRENT ASSETS
Debtors
14
Cash at bank and in hand
CURRENT LIABILITIES
Creditors: amounts falling due within one
year
15
NET CURRENT ASSETS
TOTAL NET ASSETS
CHARITY FUNDS
Restricted funds
16
Unrestricted funds
16
TOTAL FUNDS		 6,140
742,227
748,367
(649,625)		 2025
£
1,209
1,209
98,742
99,951
35,376
64,575
99,951		 55,900
83,347
139,247
(27,802)		 2024
£
3,909
3,909
111,445
115,354
50,000
65,354
115,354

The Charity was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.

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 have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

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Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION REGISTERED NUMBER: 04921852

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2025

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

B J Demeroutis

Chair

Date: 07 May 2026

The notes on pages 20 to 37 form part of these financial statements.

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Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION REGISTERED NUMBER: 04921852

CHARITY BALANCE SHEET AS AT 31 DECEMBER 2025

Note
FIXED ASSETS
Tangible assets
12
Investments
13
CURRENT ASSETS
Debtors
14
Cash at bank and in hand
CURRENT LIABILITIES
Creditors: amounts falling due within one
year
15
NET CURRENT ASSETS
TOTAL NET ASSETS
CHARITY FUNDS
Restricted funds
16
Unrestricted funds
TOTAL FUNDS		 7,504
742,227
749,731
(649,567)		 2025
£
1,209
10
1,219
100,164
101,383
35,376
66,007
101,383		 56,019
83,123
139,142
(27,715)		 2024
£
3,909
10
3,919
111,427
115,346
50,000
65,346
115,346

The Charity's net movement in funds for the year was £(13,963) (2024 - £(65,543)).

The Charity was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.

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 have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

Page 17

Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION REGISTERED NUMBER: 04921852

CHARITY BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2025

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

B J Demeroutis

Chair Date: 07 May 2026

The notes on pages 20 to 37 form part of these financial statements.

Page 18

Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

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

Note
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash used in operating activities
18
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends, interests and rents from 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
19
The notes on pages 20 to 37 form part of these financial statements		 2025
£
655,793
3,087
3,087
658,880
83,347
742,227		 2024
£
(76,021)
2,475
2,475
(73,546)
156,893
83,347

Page 19

Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

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

1. GENERAL INFORMATION

Institute of Imagination is a Charity incorporated in the United Kingdom and registered in England and Wales under the Companies Act. The address of the registered office is School 360, 5 Sugar House Lane, London, E15 2QS.

The nature of the Charity’s operations and its principal activities are set out in the Trustees’ report.

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.

Institute of Imagination 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 undertaking. The results of the subsidiary 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.

2.2 GOING CONCERN

The Trustees have conducted a thorough review of updated income and expenditure forecasts, reflecting that 76% of the 2026 income was confirmed prior to the commencement of the year. This review also considered the capacity to adjust expenditures as necessary.

Additionally, the confirmation of multi-year funding from the National Lottery, which will commence in April 2026, further reinforces the assessment that the Charity is expected to remain a going concern. Based on these forecasts, the Trustees are satisfied that the iOi will continue as a going concern for at least twelve months from the date of approval of these financial statements.

The Trustees are monitoring cash flow and will continuously review the cost structure and income generation strategies to ensure the Charity's financial viability while fulfilling its charitable objectives.

Thus, the Trustees continue to adopt the going concern basis in preparing the annual financial statements.

Page 20

Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

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

2. ACCOUNTING POLICIES (CONTINUED)

2.3 INCOME

Income is recognised in the statement of financial activities when it becomes receivable, and the entitlement, measurement and probable principles are met.

Income is deferred only to the extent that it has been received in advance for specific conditions to be met.

Donated services are included at their estimated open market value to the charity.

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 institution with whom the funds are deposited.

Grants are recognised in income based on management’s judgment regarding entitlement, measurement, and probability. Typically a grant is recognised in full when it is awarded. If a grant is for specific performance or there are unmet conditions the grant is deferred until those are met.

Where the charity acts as an agent and receives funds to be distributed to other organisations, only the portion of the grant that the charity is entitled to retain for its own activities is recognised as income. Amounts held for, or passed on to, other entities under agency arrangements are excluded from income and are recognised as liabilities until distributed.

2.4 EXPENDITURE

All expenses are recognised when an invoice is received. Provisions are included in the statement of financial activities to the extent that goods and services have been contracted for but not yet received.

Raising funds are costs related to the generation of voluntary income for the Charity.

Expenditure on charitable activities is any that relates directly to fulfilling the charitable objects of the Charity and includes allocated support and governance costs as well as direct costs.

Governance costs, included in support costs, relate to the direct running of the Charity, allowing the Charity to operate and generate the information required for public accountability.

Staff costs and support costs are analysed and apportioned on the basis of management’s estimation of the time spent on each activity.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events 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.

Page 21

Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

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

2. ACCOUNTING POLICIES (CONTINUED)

2.5 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 should be included in the measurement of cost.

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 basis:

Fixtures and fittings - 25% straight-line Computer equipment - 25% straight-line

2.6 INVESTMENTS

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

2.7 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.

2.8 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.

2.9 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.

2.10 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.

2.11 OPERATING LEASES

Expenditure on operating leases is accounted for on a straight-line basis over the life of a lease.

Page 22

Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

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

2. ACCOUNTING POLICIES (CONTINUED)

2.12 PENSIONS

The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the Balance Sheet.

2.13 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.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

3. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT

In the application of the Group’s accounting policies, which are described in note 1, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

Critical accounting estimates and assumptions:

Income received as an agent

iOi management consider the substance of one of their principal funding arrangements to represent an agency agreement, with iOi responsible for collating the reporting, performance and finance of the other grantees. Consequently, £248,012 of the grant has been recognised in income and £308,810 of the grant is passed directly to other grantees. There was no balance outstanding at the year end.

The Trustees do not consider there to be any further critical judgements or sources of estimation uncertainty requiring disclosure beyond the accounting policies listed above.

Page 23

Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

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

4. INCOME FROM DONATIONS AND LEGACIES

Unrestricted
funds
2025
£
Donations
198,990
Grants
-
198,990
TOTAL 2024
316,266
There were no donated services in 2025 or 2024.		 Restricted
funds
2025
£
-
278,012
278,012
241,420		 Total
funds
2025
£
198,990
278,012
477,002
557,686		 Total
funds
2024
£
316,266
241,420
557,686

5. INCOME FROM CHARITABLE ACTIVITIES

Unrestricted
funds
2025
£
Commercial Programmes
9,750
TOTAL 2024
12,370
6.
INCOME FROM OTHER TRADING ACTIVITIES
Income from non charitable trading activities
Unrestricted
funds
2025
£
Fundraising events
21,842
School and partnership sales
600
22,442		 Total
funds
2025
£
9,750
12,370
Total
funds
2025
£
21,842
600
22,442		 Total
funds
2024
£
12,370
Total
funds
2024
£
-
-
-

All income from trading activities in 2025 and 2024 was unrestricted.

Page 24

Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

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

7. INVESTMENT INCOME

Unrestricted
funds
2025
£
Bank interest
3,087
TOTAL 2024
2,475		 Total
funds
2025
£
3,087
2,475		 Total
funds
2024
£
2,475

8. EXPENDITURE ON RAISING FUNDS

FUNDRAISING TRADING EXPENSES

Unrestricted
funds
2025
£
Fundraising expenses
1,451
Fundraising consultancy
30,150
Fundraising support costs
4,024
Fundraising salaries
72,406
108,031
TOTAL 2024
171,007		 Total
funds
2025
£
1,451
30,150
4,024
72,406
108,031
171,007		 Total
funds
2024
£
5,125
-
6,469
159,413
171,007

Page 25

Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

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

9. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Management and governance
Marketing and PR
Experience and learning
TOTAL 2024		 Activities
undertaken
directly
2025
£
84,710
-
155,647
240,357
292,514		 Support
costs
2025
£
136,375
16,155
26,766
179,296
174,548		 Total
funds
2025
£
221,085
16,155
182,413
419,653
467,062		 Total
funds
2024
£
164,092
45,719
257,251
467,062

ANALYSIS OF DIRECT COSTS

Management
2025
£
Staff costs
84,710
Programmes
-
84,710
TOTAL 2024
50,216		 Fundraising
2025
£
-
-
-
16,732		 Experience
and
Learning
2025
£
125,777
29,870
155,647
225,566		 Total
funds
2025
£
210,487
29,870
240,357
292,514		 Total
funds
2024
£
267,420
25,094
292,514

Page 26

Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

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

9. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)

ANALYSIS OF SUPPORT COSTS

Staff costs
Administration
Recruitment and training
IT costs
Marketing and communications
Governance costs
TOTAL 2024		 Management
2025
£
75,938
30,670
4,361
13,057
-
12,349
136,375
113,876		 Marketing
2025
£
2,746
400
-
170
12,839
-
16,155
28,987		 Experience
and
Learning
2025
£
-
18,773
-
7,993
-
-
26,766
31,685		 Total
funds
2025
£
78,684
49,843
4,361
21,220
12,839
12,349
179,296
174,548		 Total
funds
2024
£
80,564
52,459
2,852
22,858
5,869
9,946
174,548

Governance costs are comprised of legal fees of £3,449 (2024: £311) and accountancy fees of £8,900 (£9,764).

10. INDEPENDENT EXAMINER'S REMUNERATION

2025 2024
£ £
Fees payable to the Charity's independent examiner in respect of:
Independent examination of the charity's annual financial statements 7,280 7,000
Other services to the group 2,645 3,670

Page 27

Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

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

11. STAFF COSTS

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2025
£
324,236
27,997
9,344
361,577		 Group
2024
£
454,779
39,102
13,516
507,397		 Charity
2025
£
324,236
27,997
9,344
361,577		 Charity
2024
£
454,779
39,102
13,516
507,397

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

Management
Support		 Group
2025
No.
3
4
7		 Group
2024
No.
4
8
12		 Charity
2025
No.
3
4
7		 Charity
2024
No.
4
8
12

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

Group Group
2025 2024
No. No.
In the band £80,001 - £90,000 - 1
In the band £100,001 - £110,000 1 -

None of the Trustees (or any persons connected with them) received any remuneration or reimbursed expenses during the year (2024: Nil).

Key management personnel are defined as the Director Group that includes the CEO and Executive CoDirectors. The total employment benefits paid to key management personnel (including employer's national insurance and pension contributions) during the year was £229,439 (2024: £205,687).

Key management personnel are remunerated at market rate.

Page 28

Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

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

12. TANGIBLE FIXED ASSETS

GROUP

COST
At 1 January 2025
Disposals
At 31 December 2025
DEPRECIATION
At 1 January 2025
Charge for the year
On disposals
At 31 December 2025
NET BOOK VALUE
At 31 December 2025
At 31 December 2024		 Fixtures and
fittings
£
19,841
-
19,841
19,841
-
-
19,841
-
-		 Computer
equipment
£
34,753
(14,391)
20,362
30,844
2,700
(14,391)
19,153
1,209
3,909		 Total
£
54,594
(14,391)
40,203
50,685
2,700
(14,391)
38,994
1,209
3,909

Page 29

Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

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

12. TANGIBLE FIXED ASSETS (CONTINUED)

CHARITY

COST
At 1 January 2025
At 31 December 2025
DEPRECIATION
At 1 January 2025
Charge for the year
At 31 December 2025
NET BOOK VALUE
At 31 December 2025
At 31 December 2024		 Fixtures and
fittings
£
19,841
19,841
19,841
-
19,841
-
-		 Computer
equipment
£
18,168
18,168
14,259
2,700
16,959
1,209
3,909		 Total
£
38,009
38,009
34,100
2,700
36,800
1,209
3,909

Page 30

Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

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

13. FIXED ASSET INVESTMENTS

Investments in subsidiary companies CHARITY £ COST At 1 January 2025 10 AT 31 DECEMBER 2025 10 NET BOOK VALUE AT 31 DECEMBER 2025 10 AT 31 DECEMBER 2024 10

PRINCIPAL SUBSIDIARIES

The following was a subsidiary undertaking of the Charity:

Name Company Registered office or principal Principal activity number place of business IOI Enterprise Limited 11069407 School 360, 5 Sugar House Delivery of Lane, London, E15 2QS programmes to commercial partners Class of Holding Included in shares consolidation Ordinary 100% Yes

The financial results of the subsidiary for the year were:

Name Expenditure Profit/(Loss) Net assets
£ / Surplus/ £
(Deficit) for
the year
£
IOI Enterprise Limited 1,430 (1,430) (1,422)

Page 31

Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

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

14. DEBTORS

Group
Group
2025
2024
£
£
DUE WITHIN ONE YEAR
Amounts owed by group undertakings
-
-
Other debtors
1,433
-
Prepayments and accrued income
4,707
55,900
6,140
55,900
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Group
Group
2025
2024
£
£
Bank overdrafts
58
-
Trade creditors
5,968
2,889
Other taxation and social security
8,008
8,112
Other creditors
370,424
5,438
Accruals and deferred income
265,167
11,363
649,625
27,802
Group
Group
2025
2024
£
£
DEFERRED INCOME
Deferred income at 1 January 2025
-
-
Resources deferred during the year
249,981
-
249,981
-		 Charity
2025
£
1,364
1,433
4,707
7,504
Charity
2025
£
-
5,968
8,008
370,424
265,167
649,567
Charity
2025
£
-
249,981
249,981		 Charity
2024
£
119
-
55,900
56,019
Charity
2024
£
-
2,889
8,112
5,351
11,363
27,715
Charity
2024
£
-
-
-

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Deferred income relates to grant income received in advance of the associated project.

Page 32

Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

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

16. STATEMENT OF FUNDS

STATEMENT OF FUNDS - CURRENT YEAR

UNRESTRICTED FUNDS
Institute of Imagination
IOI Enterprise Limited
RESTRICTED FUNDS
STEAM
Community Programmes
TOTAL OF FUNDS		 Balance at 1
January
2025
£
65,346
8
65,354
-
50,000
50,000
115,354		 Income
£
234,269
-
234,269
75,000
203,012
278,012
512,281		 Expenditure
£
(233,618)
(1,430)
(235,048)
(56,250)
(236,386)
(292,636)
(527,684)		 Balance at
31
December
2025
£
65,997
(1,422)
64,575
18,750
16,626
35,376
99,951

Unrestricted funds are those which are available for the general purposes of the Charity at the discretion of the Trustees.

Restricted fund income relates to donations for the following activities:

Page 33

Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

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

16. STATEMENT OF FUNDS (CONTINUED)

STATEMENT OF FUNDS - PRIOR YEAR

UNRESTRICTED FUNDS
Institute of Imagination
IOI Enterprise Limited
RESTRICTED FUNDS
Funding for Imagination Boxes
STEAM
Community Programmes
TOTAL OF FUNDS		 Balance at
1 January
2024
£
180,889
3
180,892
-
-
-
-
180,892		 Income
£
331,111
-
331,111
160,000
75,000
6,420
241,420
572,531		 Expenditure
£
(446,654)
5
(446,649)
(160,000)
(25,000)
(6,420)
(191,420)
(638,069)		 Balance at
31
December
2024
£
65,346
8
65,354
-
50,000
-
50,000
115,354

Page 34

Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

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

17. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR

Unrestricted
funds
2025
£
Tangible fixed assets
1,209
Current assets
463,010
Creditors due within one year
(399,644)
TOTAL
64,575
ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR
Unrestricted
funds
2024
£
Tangible fixed assets
3,909
Current assets
89,247
Creditors due within one year
(27,802)
TOTAL
65,354		 Restricted
funds
2025
£
-
285,357
(249,981)
35,376
Restricted
funds
2024
£
-
50,000
-
50,000		 Total
funds
2025
£
1,209
748,367
(649,625)
99,951
Total
funds
2024
£
3,909
139,247
(27,802)
115,354
Tangible fixed assets
Current assets
Creditors due within one year
TOTAL

Page 35

Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

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

RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING 18. ACTIVITIES

Net expenditure for the year (as per Statement of Financial Activities)
ADJUSTMENTS FOR:
Depreciation charges
Interest from investments
Decrease in debtors
Increase/(decrease) in creditors
NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES
19.
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash in hand
Notice deposits (more than 3 months)
TOTAL CASH AND CASH EQUIVALENTS
20.
ANALYSIS OF CHANGES IN NET DEBT
At 1
January
2025
£
Cash at bank and in hand
83,347
Bank overdrafts repayable on demand
-
83,347		 Group
2025
£
(15,403)
2,700
(3,087)
49,760
622,146
656,116
Group
2025
£
741,645
582
742,227
Cash flows
£
658,880
(58)
658,822		 Group
2024
£
(65,538)
3,510
(2,475)
17,269
(28,787)
(76,021)
Group
2024
£
32,912
50,435
83,347
At 31
December
2025
£
742,227
(58)
742,169

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Docusign Envelope ID: C9CCFAE0-550D-4DE5-AA87-37C3805C0D62

INSTITUTE OF IMAGINATION

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

21. PENSION COMMITMENTS

The Charity operates defined contribution retirement benefit schemes for all qualifying employees. The total expense charged to the statement of financial activities in the year ended 31 December 2025 was £9,344 (2024: £13,516). Contributions of £1,910 (2024: £2,488) were outstanding at the balance sheet date.

22. OTHER COMMITMENTS

As at 31 December 2025, the Charity was committed to payments of £9,600 (2024: £9,600) under a license agreement for premises.

23. RELATED PARTY TRANSACTIONS

None of the Trustees (or any persons connected with them) received any remuneration or reimbursed expenses during the year (2024: None).

In the current year, two Trustees and a connected person purchased tickets to one of the Charity’s fundraising events on normal commercial terms. The total value of these transactions was £1,074 (2024: £Nil). No conditions were attached to this income, and no material benefits other than entry to the relevant fundraising event was provided.

In the prior year, the Charity received an unconditional donation of £5,000 from a Trustee.

There were no balances outstanding with related parties at the yearend.

There were no other related party transactions (2024: None).

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