Company Registration Number: 5241249 Charity Number: 1111252 PURE INNOVATIONS LIMITED A COMPANY LIMITED BY GUARANTEE TRUSTEES, REPORT AND FINANCIAL STATEMENTS For the year ended 31 March 2024
PURE INNOVATIONS LIMITED Financial Statements Year ended 31 March 2024 CONTENTS Page Company 1nforma.iion Trustees, Report 2-10 Independent Auditors, Report 11-14 Statement of Financial Activities 15-16 Balance Sheet 17 Statement of Cash Flows 18 Notes to the Financial Statements 19-38
PURE INNOVATIONS LIMITED Legal and Administrative Details Company number 5241249 Charity number 1111252 Registered office Prospect House Newby Road Industrial Estate Newby Road Hazel Grove Stockport SK7 5DA Principal address Prospect House Newby Road Industrial Estate Newby Road Hazel Grove Stockport SK7 5DA Trustees Miss N Hinton Mrs H White Mrs L Powis Ms J Walker Mr P Greenhalgh Mr C Hemin8way Mr S Bradshaw (appointed 09101124) Corporate Management Team Mr S Brierley- Director of Finance Mrs L Parrott-Bates - Chief Executive Mr P Locke - Director of Infrastructure Miss Monika Wieczorek-Alhatnoud- HR Director Mrs A Noon - Director of Learnin8 and Development Bankers The Co-operative Bank PIC l Balloon Street Manchester M4 4BE Auditors Mitchell Charlesworth {Auditl Limited 3rd Floor 44 Peter Street Manchester M2 5GP
PURE INNOVATIONS LIMITED Trustees, Report Year ended 31 March 2024 The trustees are pleased to present their annual directors, report together with the consolidated financial statements of the charity and its subsidiaries for the year ending 31 March 2024 which are also prepared to meet the requirements for a directors, report and accounts for Companies Act purposes. The financial statements comply with the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reportin8 Standard appllcable in the UK and Republic of Ireland IFRS 102) {effective l January 20151. Purposes and Artlvltles Pure Innovations aims to foster and promote for the benefit of the public, the advancement of education, the relief of poverty and sickness and for any other charitable purposes by all or any of the following means,. The relief of unemployment for the public benefit in such ways as may be thought fit, including assistance to find employment. The advancement of education, training or re-trainin& particularly amongst unemployed people and providing unemployed people with work experience and among the providers of edu¢ati¢n, training and work experience to beneficiaries of the Charity. The provision or a5515tance in the provision of care and recreational facilities in the interests of social welfare for those who by reason of their youth, age, infirmity or disablement. poverty or socièl and economic circumstances, have need of such facllities with the objett of Improving the beneficlarles, conditions of life. The overall aim Is to promote independence. increase choice and provide more appropriate support to people to make the most of their capacity and potential. Following the transfer of the undertaking from Stockport MBC Soclal Services Department on 1st July 2005, the following activities have been developed: Care activities- provide support for cllents rlght across the disability spectrum Includlng learnin8 disability, mental or physlcal I sensory disability, assisting them as individuals to develop skills, independence and wellbeing as much as posslble. This could be undertaken within our catering service5 offer. In the four cafes which we run we offer training opportunities in customer care, health and safety and food hygiene. We have transformed one of our previous cafes into a space producing bread and cake supplying both our own cafes and small independent cafes in the area. All produce is made by our cllents with a disability. Other opportunities exist through the One Voice, which seeks to raise awareness throughout Stockport of the issues faced by people who are from the most disadvantaged area by producing material for a community radio station. We also have various arts,, and animation offers in various locations and we are looklng to develop and broaden these for the benefits of the client 8roup. This has included developing a ceramics, animation and gaming offer to our client5 in Stockport. Throughout this document the people we support are referred to as clients, students or learners depending on the service activity.
PURE INNOVATIONS LIMITED Trustees, Report (Continued) Year ended 31 March 2024 Employment Servlces- these seek to find employment for the long term unemployed and socially disadvantaged people who are not catered for, or who have been rejected by mainstream service providers. We work in partnership with large public sector and private sector employers to educate. encourage and support them to employ a diverse workforce including disabled people. An important part of this service is to seek ways of retaining employment for such people who rnay be at risk of losing their employment status. To support employers, we run disability awareness training to the workforce free of charge - allowing them to diversify their workforce and upskill their existing workforce. We also deliver a variety of Education and Training courses, both accredited and non-accredited courses, including our travel training programme which operates in several borouBhs in Greater Manchester. The approach in this area 15 to maximi5e the independence and skills ultimately increasing life chances in partnership with education providers to ensure employment outcomes are an aspiration foryoung people with special educational needs. We deliver 11 Supported Internship sites across Greater Manchester in conjunction with large corporate and public sector organisations to increase the number of people in employment. Pure College became operational in September 2022 and opened its doors as a post 16 specialist college for young people with an Education Health and Care Plan. The courses delivered aim to prepare people for independence and employment to give them increased opportunities to secure long term employment and the necessary ski115 associated to that. Each student works towards achieving a certificate with the awarding body Open Awards. This has allowed the charity to draw down Income from a new stream of funding from the Department of Education otherwise only accessible to approved education providers. Communlty Hub- we have a direct contract wlth Stockport MBCto provide a contact point for any individual in the Borough who has a soclal need and, by use of sub-contractors or sometimes the provision of services, we provide to meet as many of those identified needs. This preventative works aims to delay or prevent the escalation of health and social care services, addressin8 the growing concern around loneline55 and i5013tion experienced by so many in communities. We aim to improve individuals, wellbeing by reducing social isolation and connecting people to thelr communities with a sense of purpose and meaning. The Community Hub offers a safe space to allow people to tonnect meaningfully to their local communities to build a network of support and aid resilience and self-support. The Mental Health Network contracted by Stockport MBC supports people with enduring mental health concerns to offer community integration and connectivity with area5 of interest. The Network adopts a holistic approach to wellbeing and health including access to complex caseworkers. thus providing a specialist coun5elling service. The team manage several support and peer groups and additional intensive therapy-based counselling sessions - all with the aim to allow people the resources. insight and networks of support to maintain a level of well-being- resulting in them being less reliant on clinical interventions and prevention of escalation into intensive and costly services and restricted provision. This work has opened opportunities to direct funding and commissioning from the NHS. Greater Manchester Combined Authority has contracted with us to deliver a Specialist Supported Employment servi covering the ten Greater Manchester Local Authority areas. The aim is to secure employment for people with a mental health or learning disability diagn05iS. We support over 300 client5 Wlth a learning disability or on the ASD spectrum across Greater Manchester to have fulfilled days with meaning and purpose, leading to many people integrated wSthin their local communities to work in project5 Of interest that build independence, social skills. confidence. and community engagement. Many of these projects have become a valuable community resource and our cllents have contributed to these in many ways,
PURE INNOVATIONS LIMITED Trustees. Report (Continued) Year ended 31 March 2024 Public benefit The main activities are outlined in the section above. They are all undertaken to further the charitls purpose for the public benefit. with due regard to the Charity Commission's guidance on this subject, including the guidance "Public benefit- running a charity {PB21." Achievements and Performance We provide a range of support services across Greater Manchester. Over the course of the year. we have secured paid work for 249 people; 53 young people have been trained to Use public transport independently,. 25 young people are on track to achieve accreditation for learning. We have 5UPPOrted 372 people in our Pure Support and care to engage in meaningful activities and 2,293 people are better connected to their cammunities or have been supported through our mental health network and talking therapies. The activities provlded for the clients were in the areas of: Arts, Pottery and Drama Catering and Retail Greenspace Health and Wellbeing Talking Therapv Learning Programmes - Work and Life skills Pre-Employment and Placement Supported in-house sesslon Supported Internship Travel Training Supported Employment Health and wellbeing Cookery and Baking Sport and Exercise Music and Dance Health and Beauty IT Woodwork We survey our clients on a regular basis. and some of the recent outcomes are listed below. In our most recent venture in opening Pure College our students have told us the following: Do you feel safe at College 100 % responded yes You are learning at College 92 % responded yes You are becoming more independent at College 75 % responded yes The course is preparing you for work 83 % responded yes You have made friends at College 100% responded yes
PURE INNOVATIONS LIMITED Trustees, Report Ictsntlnued) Year ended 31 March 2024 In terms of Supported Employment Servlces• people told us the following: Do you feel that your employment goals were achieved 100% responded yes Do you feel that you were Eiven the preparation for work 100% responded yes Do you feel that we understood your aspiratlons and help identify yourgoals 100% responded yes In our Support andcore provision they told us the following: Are staff caring and kind 95% responded yes Do you enjoy the project you attend 95% responded yes Do you feel you're listened to and heard 100% responded yes Our staff suThey resulted in 70% of staff completing and telling us the following". I feel valued and recognised for the work I do 84% responded yes We all take Health and Safety 5eriou51y 99% responded ye5 Senior leaders make the effort to listen to the team 84% responded ye5 I think I have a good balance between my work and personal life 93% responded yes I feel the work I do at Pure p051tively impacts on clients lives 99% responded yes I feel Pure cares about my wellbeing and mental health 92% responded yes Pure College- established in September 2022 with 10 young people with an Education Health and Care Plan a specialist post 16 college provision. The number of students grew to 28 students by January 2024 and has proven to be successful meeting a gap in provision in the Stockport area. This attracts the Department for Education funding with top up funding from the Local Authority that each student reside5 in. Financlal revlew We have managed to achieve another year of profitable trading. This has been achieved despite austerity measures in the public sector continuing to impact upon most income streams of the business and this still constitutes a major challenge for the foreseeable future. The main sources of income are in delivery of services funded by local authorities, colleEes and through other government contrarts. However, there Is an increasing reliance upon clients in charge of their own budgets, opting to use that money to spend on our service delivery to them. We are seeking to provide a level of service which goes beyond just retaining those individuals but adding to their number. The tharitvs profit for the year (excluding pension service costs) at £204k Outside of the underlying performance of the charity, the net movement in funds 15 also affected by actuarial movements between years on the pension fund. Actuarial adjustments reported by Hyrnan5 Roberts LLP, the Scheme Actuaries has resulted in a movement from a surplus of £3.665m to a surplus of £4.620m a movement of £955k, thi5 followed an increase in the reserve the previous year of £6.427m. This has arisen due to various changes In long
PURE INNOVATIONS LIMITED Trustees, Report Icontlnuedl Year ended 31 March 2024 term actuarial assumption5. The impact5 of these changes arising from the revision of the assumptions used by the Actuaries are outlined in more detail in note 22 to these accounts. The risk register identifies the major risks as being around the loss of key staff and generally high staff turnover in the business, reduction5 in income for delivery of core services in response to public sector austerity cuts and the impact of failures of IT systems. We raised salary levels for our main body of operational staff by a further 10.1% from 1st April 2023, and a similar percenta8e from 1st April 2024, in response to the identified risk and that has resulted in a better recruitment and retention of those types of employees. We are also investing in new IT systems that will add to our operational efficiency, although the risk of failure of those systems is a constant risk whith we continue to monitor regularly. Pure Inslght 1628 Pure Insight is a charity within the charity of Pure Innovations Ltd. It is separately re8lStered and commenced activities on 1st April 2014 to extend and continue to work with young people attaining adulthood in their transition to Independence from the Social Care System. For reasons of operational efficiency, the Boards of Pure Innovations and Pure Insight decided that the company was to become independent and this was achieved on 10th May 2023. Reserves pollcy Reserves are needed to bridge the gap between the Spending and receiving of income and to cover unplanned emergencies. The Board have determined that they wish to achieve a minimum level of reserves based upon potentlal costs of closure and risk related Costs of terminating contracts. The current level of reserves exceeds this minimum level of reserves, and the Board will make decisions in the coming months as to how its reserves more than the minimum may be best utilised for the benefit of the company's beneficiaries. At the same time the Trustees are consldering what further reserves to hold to allow for future investment. Investment powers and pollcy The investment approach has been reviewed to ensure that the company's cash balance5 are as secure as possible and that an element of those balances are invested with a view to retaining their spending power after taking into account the effect of inflation. Plans for future periods There has been investment in the buslness, principally in IT systems, and upgrading of properties we occupy, either bv internal refurbishment or moving to more appropriate buildings. The intention is that this will ultimately improve our performance and profitability, continuing to retain our existing contracts that align to our strategic objectives, bid for work in our area of knowledge and expertise and grow new funding streams, Research and development actlvltles of the charlty We continue to look at Identified areas of good practice across the UK to replicate and enhance our offer and therefore improve the outcomes for disabled and disadvantaged people in our communities. Over the past 12 months, we have been investing in becoming a more digitally aware organisation meeting the needs of younger people coming into our service. Our ambition is to become a paperless or8anisation as most of our work is remote in the community and access needs to be on-line. Our work replicates part of the governmenvs agenda of supportlng as many people as possible into employment who are in receipt of benefits. We will pilot new initiatives to achieve this with people furthest away from the labour market.
PURE INNOVATIONS LIMITED Trustees, Report Icontlnued) Year ended 31 March 2024 Structure• 8overnance and management Governlng Document The organisation is a charitable company that is limited by guarantee. The company was incorporated on 24th September 2004 and registered as a charity on 12th September 2005. The Company was established under a Memorandum of A550ciation which defines the objects and powers of the charitable company and is governed under its Articles of Association. After the end of the financial year a resolution was passed to amend the Articles Of Association and the board of trustees have approved amended internal governance rules. Recrultment and appolntment of Trustees Members of the Board of Directors of the company are also charity trustees for the purposes of charity law and under the companws Articles ofAsso¢iation are known as Trustees. Underthe requirements ofthe Memorandum and Articles of Association trustees are appointed for a term of 3 years that can be renewed for a further 2 terms of 3 years and in exceptional circurnstances, if 75% of the the members think that it is in the best interest of the charity. they can be appointed for a further period. Trustee induction and training We have developed a trustee induction pack, and training is undertaken with the trustees in accordance with the training plan identified followin8 annual trustee appraisals. Reference and admlnlstratlve detalls Reference and administrative details are shown in the legal and administrative details page of the financial statements. Organlsation The directors of the charitable company {the Charity) are its trustees for the purpose of Charity law and directors for the purpose of Company law. The trustees who served the charity during the year were as follows: Key management personnel: Trustees, and Directors Joint Chair: Ms N Hinton Ms J Walker Trustees: Mrs H White Mrs L Powis Mr P Greenhalgh Mr C Hemingway Mr S Bradshaw (appointed 9 January 20241 th Key management personnel: Executlve Management Team Director of Finance Chief Executive Director of Infrastructure Mr P Locke Director of Learning and Development Mrs A Noon HR Dirertor Miss Monlka Wieczorek-Alhamoud Mr S Brierley Mrs L Parrott-Bates
PURE INNOVATIONS LIMITED Trustees, Report Icontlnuedl Year ended 31 March 2024 The Board of Pure Innovations meets every 8 weeks. and they are responsible for the strategit dlrectlon and policy of the charity. A scheme of dele8ation is in place and day-to-day responsibility for the provision of services rests with the Chief Executive and other members of the Executive Management Team. The Chief Executive has overall responsibility for ensuring that the charitv delivers the services specified through the day-to-day operational management of the company. and individual supervision of the other members of the Executive Management Team. Employees and employment of disabled persons Pure Innovations recognises Its role and responsibilities within the local community in identifying and removing those barriers. which prevent disabled people from sharing equally in the rights, benefits, obligations and opportunities to undertake meaningful employment. Pure Innovations actively encourages the employment of colleagues Wlth a disability and is recognised as a Disability Confident Employer by the DWP. We have a strong track record in attractinB and retaining people with a disability at all levels of the charity. We regularly make reasonable adjustments for new and existing colleagues to provide holistic support to enable them to fully participate in the workplace and fulfil their potential. At Pure Innovations, 11.5% of the current workforce identifie5 as having some form of disability. We believe this to be a conservative figure as some employees chose not to declare their disability or do not re8ard themselves as such. Pure recogni5es that as a specialist employer in the local community It has the opportunity to achieve a significant impact on opportunities for disabled people via the development of its employment policy and promotion of work- related positive action init13tives. These help to counteract longstandlng dlsadvantages in gaining access to work and remainin8 in employment should a person become disabled during their working lives. Pure Innovations is committed to the creative use of existing resources and the development of imaginative initiatives including job tasters, job trials and job carving. This is enhanced by regular staff briefings and new51etters. team meetings, supervi5ion5 and an appraisal system which identifies training and development needs. Within the Pure group there is an exchange of good prartice, staff attend disability awareness training and successful developments are promoted on our website and in our Social media. Our vacancies are advertised concurrently, internally and externally and staff are encouraged to apply for promotion when they feel ready to do so. We have a succession policy in pla which identifies and supports those we see as the potential future leaders of the charity. Employee Involvement Involving all employee5 is fundamental to howthe Company operates, With open communication at all levels. The group systematically provide5 employees with information on matter5 of concern to them. consulting them or their representatives regularly, so that their views can be taken into account when making decisions that are likely to affect them. Employee involvement is encouraged. as achieving a common awareness on the part of all employees of the financial and economic factors affecting the concern plays a major role in maintaining and growing its position. New employees attend an induction process during the early days of their employment. Included within the induction phase is a session on the companvs values which underpin5 the companV5 approach to staff, volunteers and service users. Pure's values are as follows: Respectful .-... Responsive..... A5pirational Inclusive Always treat people the way you would wish to be treated no matter what the situation. By listening to others, we solve problem5 by finding 501ution5. Achieve the best possible outcomes by continually improving what we do. We are welcoming and involve all in what we do.
PURE INNOVATIONS LIMITED Trustees, Report (Continued) Year ended 31 March 2024 Pay policy for senior staff The pay of the Executlve Management Team has been determined by the Board of Directors. Related partles and co-operatlon wlth olher orBanlsatlons Helen White Is director of a marketing organSsation to whlch Pure Innovations pays a small annual subscription, none of our trustees receive remuneration or other benefit from their work with the charity. We have several partnership links outside of the contractual relationships identified above, these partnerships links are with a wide variety of organisations who we work in collaboration with. Rlsk management A risk register ha5 been prepared u5inE Charity Commission guidance on the subject. These have been approved by the Board of Trustees and amended (where appropriatel to changes in the organisation and also in external factors. The risks are identified along with the potential impact and the steps to rnitigate risk. Each risk is then scored by using the formula {a+b+bl where a - Likelihood and b- Potential impact, and those with a deemed high 5COTe are subject to review and action to monitor the major risks. Trustee responslbllltles In relatlon to the financlal statements The charity trustees (who are also directors for the purpose of company lawl are responsible for preparing a trustees, annual report and financlal statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires charity tru5tee5 to prepare financial 5tatement5 for each year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, includin8 the income and expenditure, of the charitable group for that period. In preparing the financial staternent5, the trustees are required to: Select suitable accounting policie5 and then apply them consistently Observe the method5 and principle5 in the Charities SORP Makejudgements and estimates that are reasonable and prudent; State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements- Prepare the financial statement5 On the going concern basis unless It is inappropriate to assume that the company will continue in business. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuraty at any time the financial position of the charity and to enable them to ensure that the financial statement5 comply with the Companies Act 2006. They are also responsible for safeguardlng the assets of the charity and the group and hence taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are re5pon5ible for the maintenance and integrity of the corporate and financial information included on the charitable companvs webslte. Legis5ation in the United Kingdom in governing the preparation and dissemination of financial statements may differ frorn le8islation in other jurisdictions.
PURE INNOVATIONS LIMITED Trustees, Report {Contlnuedl Year ended 31 March 2024 Auditor Mitchell Charlesworth were appointed as auditor at the last AGM in April 2024 and in accordance with Section 485 of the Companies Ad 2006, a resolution proposing their re-appointment will be put forward to the next General Meetin8. Statement as to dlsclosure to our audltors In so far as the trustees are aware at the tlme of approving our trustees, annual report: There is no relevant information, being information needed by the auditor in connection with preparing their report, of which the group's auditors is unaware; and The trustees. having made enqulries of fellow directors and the group's auditor that they ought to have individually taken, have each taken all steps that he/she 15 obliged to take as a director in order to make themselves aware of any relevant audlt information and to establish that the auditor is aware of that information. By order of the trustees N Hinton Trustee Date - £02* 10 I Page
PURE INNOVATIONS LIMITED Independent Auditor's Report to the Members of Pure Innovations Lirnited Year ended 31 March 2023 Opinlon We have audited the financial statements of Pure Innovations Limited for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Balance Sheet and Statement of Cashflows and notes to the financial statement5, 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 Stondard opplicable in the UK ond Republic of Irel¢ind (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a true and fair view of the state of the charity'5 affairs as at 31 March 2024, and of the charitvs incoming resources and application of re50urce5 for the year then ended: have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. and have been prepared in accordance with the requirements of the Companie5 Act 2006. Basls for oplnlon We conducted our audit in accordance with International Standard5 on Auditing IUKI IISAS (UK)) and appllcable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charltable company in accordance with the ethical requirements that are relevant to our audlt of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance wlth these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our oplnlon. Conclusions relatlng to golng 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 thework we have performed, we have not identified anymaterial uncertainties relatingtoevents orconditions that. individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statement5 are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relèvant sections of this report. Other information The other information comprises the informalion included in the trustees, annual report, other than the financial statements and our auditorfs 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 audit or otherwise appears to be materially misstated. If we identify such material incon5i5ten¢ies or apparent material misstatements. we are required to determine whether there is a material misstatement in the financial Statements or a material misstatement of the other information. If, based on the work we have performed. we conclude that there is a material misstatement of thls other information. we are required to report that fact. We have nothing to report in this regard.
PURE INNOVATIONS LIMITED Independent Auditor's Report to the Members of Pure Innovations Limited Year ended 31 March 2023 Matters on whlch we are requlred to report by exceptlon We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulation5 2008 require u5 to report to you if, in our opinion: the information given in the financial statements is inconsistent in any material respect with the tru5tees' report. sufficient accounting records have not been kept. the parent charitls financial statements are not in agreement with the accounting records; or we have not received all the information and explanations we require for our audit. Responslbllltles 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 lawl 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 charity's ability to continue as a going concern, disc105ingi a5 applicable, matter5 related to going concern and using the going concern ba515 of accounting unless the trustees either intend to liquidate the group or the parent charity or to cease operation5. or have no realistic alternative but to do so. Auditorf5 responsibilities for the audit of the financial statements We have been appointed as auditor under section 144 of the Charities Act 2022 and report in accordance with regulations made under section 154 of that Act. 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 Èrror, and to issue an auditor's report that includes our oplnion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS IUK} 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 declslons of users taken on the basis of these financial statements. Details of the extent to which the audit was considered capable of detecting irregularitie5, including fraud and non- compliance with laws and re8ulatlons are set out below. Extent to whlch the audlt was consldered capable of detertlng Irregularltles, Includlng fraud We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. Identifylng and assesslng potentlal rlsks related to Irregularltles In identifying and a55essing risks of material misstatement in respect of irregularitie5, including fraud and non- compliance with the laws and regulations, we considered the following- 121 Page
PURE INNOVATIONS LIMITED Independent Auditor's Report to the Members of Pure Innovations Llmlted Year ended 31 March 2023 Audit response to risks Identlfled the nature ofthe sector, control environment and business performance. results of our enquiries of management about their own identification and assessment of the risks of irregularities. any matters we identified having obtained and reviewed the Companws documentation of their policies and procedures relating to the identifying, evaluatingi and complying with laws and regulations and whether they were aware of any instances of noncompliance. Detecting and responding to the risks of fraud and whetherthey have knowledge of any actual, suspected. or alleged fraud and the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations. the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. As a result of these procedures, we considered the opportunitie5 and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to the correct treatment of grant income, including the correct use of restricted funds and any grant income due to be repaid to funders as a result of financial or performance-based condition5 imposed, not being achieved. In common with all audits under ISAS IUKI, we are also required to perform specific procedure5 to respond to the risk of management override and we identified risk in relation to the posting of unusual journals and the manipulation of accounting estimates. We also obtained an understanding of the legal and regulatory frameworks that the charity operates in, focusing on provisions of those laws and regulation5 that had a direct effett on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included Safeguardin& 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 IFRS 1021 (effective l January 20191, the Financial Reporting Standard applicable in the UK IFRS 1021, and the Companies Act 2006. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance wlth whlch may be fundamental to the company's ability to operate or to avoid a material penalty. These included Data Protection Regulation5. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditorf5 report. Audil re5pon5e to risks identified As a result of performing the above, we identified the recognition of revenue as the key audit matter related to the potential risk of fraud. In addition to the above, Dur procedures to respond to risks identified included the following: reviewing the financial statement disclosures and testingto supporting documentation to assess compliance with relevant laws and regulations described above as having a direct effect on the financial statements. enquiring of management and members of the board concerning actual and potential litigation and claims. performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. reading minutes of meetings of th05e charged with governance and reviewin8 correspondence with relevant authorities where matters identified were significant; and in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments: assessing whether the judgements made in making accounting estimates are indicative of a potential bias,. and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of busine55.
PURE INNOVATIONS LIMITED Independent Auditor's Report to the Members of Pure Innovations Limited Year ended 31 March 2023 We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-¢ompliance with laws and regulations throughout the audit. Use of our report This report is made solely to the chariws trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charit¢s tru5tee5 those matters we are required to state to them in an auditor's report and for no other purpose.To the fullest extent permitted by law, we do not accept or assume responsibilityto anyone otherthan the charity and the charity's trustees as a bodyi for our audit work, for thls report, or for the opinions we have formed. 18 December 2024 Allson Buckley Isenlor Statutory Audltor) For and on behalf of Mitchell Charle5WOrth (Audit) Limited 3 Floor 44 Peter Street Manchester M2 5GP Statutory Auditor Mitchell Charle5WOrth IAuditl Limited is eligible to act an auditor in terms of section 1212 of the Companies Act 2006. 141 Page
PURE INNOVATIONS LIMITED Statement of Flnanclal Actlvitles (incorporating income and expendlture account) Current Year- Year ended 31 March 2024 Unrestricted Restricted Funds Funds Totsl Fund5 2024 Notes Pension Income Donations and legacies Other trading income Income from charitable activities: Provision of core. employment, cotering & otherservices 8.444,457 8.444,457 Investment Incorne 49,580 173,000 222,580 Total income 8,494,037 173,000 8,667,037 Expenditure Expenditure on charitable activities: Provision of core, employmen¢ ¢otering & other seTvice5 8.289.586 47,000 8,336.586 Total expendlture 8,289,586 47,000 8,336,586 Net Incomlng resources before other recognised gains and losses 204ASI 126,000 330,451 Other recognised losses li {286,426) (275,854) 1562,2801 Net incoming resources before other recognlsed 8alns and losses (81,975) (275,854) 126,000 {231,8291 Actuarial profit on defined benefit pension scheme 829,000 829,000 Net movement in funds 181,9751 (275,854) 955,000 597,171 Total funds brought forward 3,134,494 275,854 3,665,000 7,075,348 Total funds carrled forward 3,052,519 4,620,000 7,672,519 The Statement of Financial Activities includes all gains and losses in the year.
PURE INNOVATIONS LIMITED ststement of Flnancial Activities (incorporating income and expendlture account) Prior Year- Year ended 31 March 2023 Unrestricted Funds Restricted Funds Total Funds 2023 Notes Pension Income Donations and legacies Job retention scheme grant Other trading income 13,008 13,008 2,778 2,778 Income from charitable activities: Provision of core, employment, cotering & other seNices 7,427,390 573,330 8,000,720 Investment Income 11,619 11,619 Total Income 7,454,795 573,330 8.028,125 Expendlture Expendlture on charitable activities: Provision of care, employment, cotering & otherseNices 7,313,184 524,392 203,000 8,040,576 Total expenditure 7,313,184 524,392 203,000 8,040.576 Net incomlngl(outgolng) reSoUrS before other recognised galns and losses 141,611 48,938 (203,000) (12,4511 Actuarial profit on defined benefit pension scheme 6.427.000 6,427,000 Net movement In funds 141,611 48,938 6,224,000 6,414,549 Net transfer between funds Total funds brought forward 2,992,883 226,916 12,559,000) 660,799 Total funds carried forward 3,134,494 275,854 3,665,000 7,075.348 The Statement of Financial Activities includes all gains and losses in the year.
PURE INNOVATIONS LIMITED Balance Sheet Year ended 31 March 2024 2024 2023 Notes Fixed assets Tangible assets Investments 15 16 439,185 213,002 503.401 388,136 652,187 891,537 Current assets Stocks Debtors Investments Cash at bank and in hand 17 18 19 57,871 2.018,286 19,435 825,686 53,633 1.240,561 3,895 1,794,428 2,921,278 3.092,517 Creditors.. amounts falling due within one year 20 (520,946) {573,7061 Wet current assets 2AOO,332 2,518,811 Totsl assets less current liabilities 3,052.519 3,410,348 Defined benefit pension scheme assetllliabilityl 22 4.620.000 3,665.000 Total net assets 7.672,519 7.075.348 Funds Unrestricted funds: General Pension fund reserve 23 23 3.052,519 4.620.000 3.134.494 3.665.000 Total funds 7,672,519 6.799.494 Restricted funds 24 275,854 7.672,519 7.075.348 These financial statements were approved by the members of the committee on ...................... and are slgned on their behalF by: N Hinton Trustee Company Registration No. 5241249 (England and Wales) 171 PaEe
PURE INNOVATIONS LIMITED Consolidated Statement of Cash Flows Year ended 31 March 2024 2024 2023 Notes Cash flows from operating artivities Cash generated in operating activities 26 (1,006,707) 261,692 Cash used In Investing activities Purchase of tanEible fixed assets Disposal proceeds of tangible fixed assets Disposal of Investments Purchase of Investments Interest income (195,798) {272,7431 37,635 267,496 {83,3131 49,580 1400,0001 11,619 Net cash used In investing activities 37,965 (623,489) Net increase in cash and cash equivalents 1968.7421 1361,7971 Cash and cash equivalents at beginning of year 1,794,428 2.156.225 Cash and cash equivalents at end of year 825.686 1,794,428
PURE INNOVATIONS LIMITED Notes to the Financial Statements Year ended 31 March 2024 Company Informatlon Pure Innovations Limited is a private company limited by guarantee and incorporated in England and Wale5. The registered office is Unit 5, Station View, Hazel Grove, Stockport, SK7 SER. ounting Policies The principal accounting policies adopted, judgements and key sources of estimation uncertainty In the preparation of the financial statements are as follows: Basis of preparation Thefinancial statements have been prepared in accordancewlth thecharity's governing document, the Companies Act 2006 and "Accounting and Reportin8 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 1021 (effective l January 2019)". The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, whlch Is the functional currenry of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accountin8 policies adopted are set out below. Going concern The Trustees have assessed whether the use of going concern is appropriate i.e. whether there are any material uncertaintie5 related to events or conditions that may cast Sl8nificant doubt on the ability of the Charity to continue as a going concern. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorisinB these financial statements. The budgeted Income and expenditure are sufficientwith the level of reserves for the charity to be able to continue as a going concern. Having regard to these matters the Trustees consider it appropriate to prepare the financlal statements on a going concern basis. Income Income is the amount derived from the provision of goods/services and stated after trade discounts, other sales taxes, and VAT where applicable. Income is recognised when the charity has entltlement to the funds, any performance conditions attached to the itemlsl of income have been met, it 15 probable that the income will be received, and the amount can be measured reliably. Income from government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it Is probable that the income will be received, and the amount can be measured reliably and is not deferred. Grants are deferred to future perlods only when this is specified by the funder or other preconditions of the grant are not vet met. Investment income is recognised on a receivable basis.
PURE INNOVATIONS LIMITED Notes to the Financial Statements Year ended 31 March 2024 Accountlng Pollcles Icor*tlnuedl Expenditure Expendlture is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be requlred, and the amount of the obligatlon can be measured reliably. Expenditure is classified under the following activity headin85: Costs of raising funds are the direct and indirect costs of raising funds for charitable purposes, including applying for grants. Charitable activities include expenditure associated with the delivery of its activities and services provided for its beneficiaries and include both the direct costs and support costs relating to these activities. Support costs include central functions and have been allocated to activity cost categorie5 directly as well as indirectly, based on an appropriate basis a5 detailed in the accounts. Other expenditure represents those items not fallin8 into any other heading. Funds structure Restricted funds are funds subjett to specific restrictive conditions imposed by the donor or by the purpose of the contract I monies received. The purpose and use of restricted funds is set out in note 26 to the financial statements. General funds are unrestricted funds, which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Designated funds are funds which have been allocated or de5i8nated for specific purposes by the charity out of unrestricted fund5. Volunteers The value of services provided by volunteers is not included In the financial statements. Donated good5, services, and facilities On any occasion where goods and service5 are provided to the charity as a donation that would normally be purchased from our suppliers. this contribution 15 included in the financial statements at an estimate based on the value of the contribution to the charity. Any goods given to the charity and held for stock are only recognised in the year that the goods are distributed or used. Tangible fiKed a55ets All fixed a55ets are initially recorded at cost. Depreciation is calculated so as to write off the cost of an a55et, less its estimated residual value. over the useful economic life of that asset as follows.. IT equipment Catering equipment Fixtures and fittings Leasehold improvements Motor vehicles 33% of cost 20% of cost 25133% of cost 10120% of cost 33% of cost
PURE INNOVATIONS LIMITED Notes to the Financial Statements Year ended 31 March 2024 Accounting Policies IcontinuÈdl Flxed asset inve5tment5 Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. The Charity does not acquire put options. derivatives, or other complex financial instruments. The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment rlsk, and changes in sentiment concerning equities and within particular sectors or sub sectors. Stocks Stock is included at the lower of cost or net realisable value. Penslons The company operates two penslon schemes for employees. Employees of Pure Innovations Limlted have been eligible to join the Greater Manchester Penslon Fund, which is a defined benefit scheme. It is funded by contributions from employees and the Company as an employer. The assets of the scheme are held separately in a fund administered for the benefit of Local Authority employees and those other scheduled bodies. Following auto enrolment. the charity a150 operates a defined contribution pension scheme operated by NESt. The assets of the scheme are held separately from those of the charity in an independently fully managed and administered fund. The amount charged represents the contributions payable to the Scheme in respect of the accounting period. Debtors Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepald net of any trade discounts due. Cash at bank and in hand Cash at bank and cash in hand includes cash and short-term highly liquid investments with a short-term maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Creditors and provi5i0ns Creditors and provisions are recogni5ed where the charity has a present obligation resultinE from a past event that will probably result in the transfer of funds to a third party and the amount due to Settle the obligation can be measuied or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. Flnanclal instruments The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instrument5 are initially recognised at transaction value and subsequently measured at thelr settlement value with the exception of bank loans which are subsequently measured at amorti5ed cost using the effective interest method.
PURE INNOVATIONS LIMITED Notes to the Financlal Statements Year ended 31 March 2024 Legal ststvs of the Charity The company is limited by guarantee and all members have agreed to contribute an amount not exceeding £1 in the event of a winding up. The number of members at the year-end was 6 (2023.. 81. Judgements and key sources of estimation uncertainty In the application of the charity's accounting policies. the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabllitles 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. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period. Dr in the period of the revision and future periods where the revision affects both current and future periods. Donations and le8acle5 Unrestricted Funds Restrlcted Total Funds Unrestricted Funds 2024 Funds Restricted Total Fund5 Funds 2023 Appeals and donation5 13,008 13,008 Other tradlng Income Unrestricted Funds Restrirted Total Funds Unrestricted Funds 2024 Funds Restricted Total Funds Funds 2023 Commercial trading operations: Other Services 2,778 2,778 2,778 2,778 Income from charltable actlvities Unrestrlcted Funds Restrlcted Total Funds Unrestricted Funds 2024 Funds Restricted Funds Total Fund5 2023 Care services Supported employment Catering Other activities 3,254,598 3,632.378 1,115,259 442.222 3,254,598 3.632.378 1,115,259 442,222 3,260,731 2,747,820 977,284 441,555 573,330 3,834,061 2,747,820 977,284 441,555 8,444,457 8.444,457 7,427,390 573,330 8,000,720
PURE INNOVATIONS LIMITED Notes to the Financial Statements Year ended 31 March 2024 Investment income Unrestricted Total Funds Unrestricted Total Funds Funds 2024 Funds 2023 Investment income Pension finance income 49,580 173,000 49.580 173,000 11,619 11,619 222,580 222,580 11,619 11,619 The investment income arises from interest bearing deposit accounts. Analysis of expenditure on charltable actlvltles- current year Care Services Employment Support other Actfvftles Total 2024 Caterlng Payroll, and wage costs Pension service cost Cost of sales and kitchen equipment Premises costs General administration Travel and Subsistence Equipment Depreciation Pure Insight costs Professional includlng IT Support costs (note 10) Governance 1,851,731 18,135 2,893,412 20,240 662,762 6,215 287,216 2,410 5,695,121 47,000 10,996 189A15 57,620 63,526 9,552 519,619 169,215 6,191 4,140 21,730 530,615 415,909 78,891 137,814 38,125 8,832 50,701 13,030 66,892 6,566 8,832 6,578 2,050 3,256 277 443 508,229 5,994 29.741 567,221 6.690 19.345 174,155 2,054 2.061 67,549 797 51.590 1,317,154 15.535 2,715,641 3,663,325 1,585,426 372,194 8,336,586 Expenditure on charitable activities was £8,336,58612023: £8,040,576) of which £8,336,58612023: £7,516,184) was unrestricted and £Nil12023: £524,392) was restricted
PURE INNOVATIONS LIMITED Notes to the Financial Statements Year ended 31 March 2024 Anatysls of expenditure on charitable artivities- prior year Care Employment Services Support Other Activities Insight 1628 Total 2024 Catering Payroll, and wage costs Pension service cost Cost of sales and kltchen equipment Premises costs General administration Travel and subsistence Equipment Depreciation Pure Insight 1628 costs Professional including IT Support costs Inote 101 Governance 1,651.017 85,763 2,161.835 77,916 639.117 27,711 271.352 11,610 4,723,321 203,000 4,120 203,735 51,004 65.800 8,383 457,878 119,719 8,329 1,533 13,360 461,998 358,186 79,796 118,801 25,270 2,552 735.418 35,434 1.278.249 18,551 30.568 18,771 48.354 2,955 2,552 4,164 1,692 3,114 572 735.418 592 540,032 7,837 13,831 490,619 7,120 17,407 174,492 2,532 3,604 73,106 1,062 2,618,283 2,854.521 1,462,078 370.276 735.418 8,040,576 241 Pa8e
PURE INNOVATIONS LIMITED Notes to the Financial Statements Year ended 31 March 2024 10. Analysis of support COSts- current year The charity initially identifies the costs of its support functions. It then identifies those costs which relate to the governance funrtion. Having identified its governance costs, these along with the remaining support costs. are attributea to the key charitable activities. These are allocated on a basis consistent with the income derived from the individual activities. Allocation between individual activities under any other basis is considered impracticable. Employment Support Other Actlvltles Total 2024 Care Services Caterlng Centralsupport costs.. Payroll, and wages costs Cost of sales and kitchen equipment Premises costs General administration Travel and subsistence Equipment Depreciation Professional including IT Marketing Irrecoverable VAT Re-organi5ation c05ts 236,185 263,600 80,934 31,391 612,110 15 124,510 3532 I194 15.538 231.902 215,973 48,043 13,826 53,619 15,430 5,122 6,691 99,867 93.007 16N63 4,738 1,573 2,055 30,662 18.556 6,385 1,838 610 797 11093 11.076 5,995 89,480 83.334 21.086 5,685 23,533 6.345 7.225 1,948 2,803 755 54,647 14.733 Governance costs: Audit 5,994 6,690 2,054 797 15,535 514,223 573,910 176,210 68,346 1,332,689 Analysls of support costs - prior year Employment Support Othèr Activities Total 2023 Care Services Catering Centrol support COSts.' Payroll, and wages cost5 Cost of sales and kitchen equipment Premises costs General administration Travel and subsistence Equipment Depreciation Professional including IT Marketin8 Irrecoverable VAT R&organisation costs 254,759 125) 51,404 31,522 5,999 5.582 98,728 65,117 231.449 {231 46,700 28,638 5,450 5,071 89,694 59,159 82,317 181 16,609 10,185 1,938 1,804 31,900 21,040 34,488 14> 6,959 4.267 812 756 13,365 8,815 603,013 {60) 121,672 74,612 14,199 13,213 233,687 154,131 22,970 3,976 20,869 3.612 7,422 1.285 3,110 538 54,371 9,411 540,032 490,619 174,492 73,106 1,278.249 Governance costs., Audit 7,837 7.120 2,532 1,062 18,551 547,869 497,739 177,024 74,168 1,296,8iJ) 251Page
PURE INNOVATIONS LIMITED Notes to the Financial Statements Year ended 31 March 2024 ii. Net incomellexpenditure) for the year 2024 2023 This is stated after charging: Depreciation Auditor's fees - for audit serwices for financial statements Other recognised losses 240.734 13,000 1,500 562,280 242,018 13.925 2,250 The other recognised losses relates to the transfer of the Pure Insight 1628 funds to the separate charity which carries on this work. 12. Analysis of staff costs, trustees. remuneratlon and the cost of key management personnel 2024 2023 Wages, salaries, and other staffing costs Social security costs Pension costs (including service c05t} 5,685,623 429,067 239.541 4,787,932 351,810 389.592 6,354,231 5,529,334 Pension funding within the Statement of Financial Activities includes £47,000 {2023: £203,(XsOI in relation to the current Service cost a5 included in the pension scheme note. Two employee's12023.' one) had emoluments in excess of £60,00012023,' £60,000). These employee5 fell into the following pay bands: 2024 No 2023 No £60,OCKJ - £69,999 £70,OCM) - £79,999 The key management personnel of the charity comprise the trustees and the Corporate Management Team. The total company employee benefits of the key management personnel of the Trust were £353,440 12023: £302.525). A strong team of volunteers that support our operations have given their time in the period. No value has been attributed to volunteer time. 13. Staff numbers The average monthly number of full time employed by the charity during the year was: 2024 No 2023 No Z57 225
PURE INNOVATIONS LIMITED Notes to the Financial Statements Year ended 31 March 2024 14. Corporation tax As a charity, the company is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or Sectlon 256 of the Taxation of Chargeable Gains Act 1992 to the extent they are applied to its charitable objectives. No corporation tax charge for the period was incurred by any of the trading subsidiaries and on this basis no provision has been made for corporation tax. 15. Tangible fixed assets Caterlng Fixtures and Leasehold Equipment Fittings Improvements Motor Vehicles Systems Total Cost At 1st April 2023 Additions Disposals Transfer Pure Ins18ht 319,178 63,623 127,4311 115,5961 268.415 36,857 142.4311 61,801 189,169 64,239 306,522 22,675 135,752) 119.999) 1,145,085 195.798 1119,7021 145,3511 114.088) (9,7561 At 31 March 2024 339,774 26241 46,361 253A08 273,446 1,175,830 Depreclatlon At 1st April 2023 Charge for the year Eliminated on disposal Transfer Pure Insight 170,386 82,435 {27,4311 (12,556) 202,694 43,781 {42,431) 43,731 8,842 114,0881 13,3881 54,023 40,623 170.850 65,053 135.752} 110,127} 641.684 240.734 1119,7021 126.0711 At 31st March 2024 212.834 204,044 35,097 94,646 190,024 736.645 Net book value At 31st March 2024 126,940 58,797 11,264 158,762 83,422 439,185 At 31st March 2023 148,792 65,721 18,070 135,146 135,672 503,401 16. Investments 2024 2023 Market value at l April 2023 Additions at cost Disposals at market value Net {loss) on revaluation 388,136 83313 1267.496) 9,049 400.000 111,864) Market value at 31 March 2024 213,002 388.136 All investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in common investment funds, unit trusts and open-ended investment companies are at the bid pri. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value). The significance of financial instruments to the ongoing financial sustainability of the Charity 15 considered in the financial review and investment policy and performance sections of the Trustees, Annual Report.
PURE INNOVATIONS LIMITED Notes to the Flnanclal Statements Year ended 31 March 2024 17. Stock 2024 2023 Goods for resale 57,871 53.633 57,871 53,633 18. Debtors 2024 2023 Trade debtors Other debtors and prepayments 1.124,3SO 893,936 613.323 627,238 2,018,286 1,240,561 19. Current asset investments 2024 2023 Cash on short-term deposlts 19,435 3,895 19,435 3,895 20. Credltors: amounts fallln£ due within one year 2024 2023 Trade creditors other taxes and social security other creditors and accruals 139.645 130,837 250N64 114,094 102,885 356,727 520,946 573,706 21. Commltments under operating leases The company leases its main buslness premises, several café premises and other equipment under formal operating leases. The lease agreement5 terminate between 2021 and 2026. At 31 March 2024 the company had annual commitments under non-cancellable operating lease5 a5 set out below. 2024 2023 Land & buildings Operating leases which expire: Within l year Within 2 to 5 years 234.173 277,833 222,114 416,383 512,006 638,497
PURE INNOVATIONS LIMITED Notes to the Financlal Statements Year ended 31 March 2024 22. Retirement beneflt schemes Defined cohtrlbutlon scheme- NEsr New employees ofthe company are only able to join the National Employment Savings Trust (NEST) pension scheme. Under current legislations employees not in the GMPF are automatically enrolled into NEST unless they have exertised their right to opt out of scheme membership. This is a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The employee and employer contributions are 3% for employees and 5% for employers in 2024. Employer's contributions of £113.75012023 - £98.0001 have been paid to thi5 scheme in tho year. Defined beneflt schemes- GMPF The company operates a defined benefit scheme for employees. The scheme is an admitted body to the Greater Manchester Pension Fund. The GMPF scheme is a local government pension scheme and is administered by Tame5ide Metropolitan Borough in accordance with the Local Government Pension Scheme regulations. The assets of the scheme are held separatelyfrom those of the company. The contributions tothe scheme are charged to the statement of financial activities so as to spread the costs of pensions over the Service lives of the employees. Variations from the regular costs are spread over the average expected remaining working lives of current members of the scheme. Members of the scheme may also contribute added years to that scheme or take out an Additional Voluntary Contribution Stheme, each of which is funded by the employee alone. Members of theGMPF accrue an indexed linked pension of ty80 of the best of the last 3 years pensionable5ervice for each year of service. Additlonal benefits include a lump sum on retirement, continued Ireducedl pensions for a spouse on death of a member and benefits for dependents on death or permanent incapacity. service. The latest formal valuation of the scheme for the purposes of setting employers, actual contributions was on 31 March 2024. Contribution5 to the scheme have been made during 2024 at rates that have been recommended by GMPF actuarial advisors. These are: Employee- Banded rate based on pensionable earnings between 5.5% and 8.5% Employerfs- 18.7% of pensionable earnings When the company joined GMPF on l July 2005 there wa5 4 transfer of employees from Stockport MBC. The transfer of pension arrangements was on a fully funded basis i.e. there wa5 no transfer of deficit in the Fund attributable to the tran5ferrin8 employees {on the onBoin8 valuation basis) from Stockport MBC. It should be noted that the year-end valuation calculated under FRS17, showed a variation from the initial valuation which was made using a differing accountlng conventlon. The valuation In these financial statements assumes a notional re-allocation of assets in the Fund from Stockport MBC to Pure Innovations Limited on this basis. Financial Assumptions 2024 %pa 2023 %pa The key financial assumptlons used are: Inflation/penslon increases Salary Increases Discount rate 2.75% 2.95Yo 3.55% 3.75% 4.85% 4.75%
PURE INNOVATIONS LIMITED Notes to the Financial Statements Year ended 31 March 2024 22. Retirement benefit schemes (tontinued} Mortality Assumptlons 2024 Years 2023 Years The period of pension drawdown: Currerrt Future Current Future Male Female 20.2 21.1 20.4 21.3 24.4 25.3 24.6 25.5 Key assumptlons Life expectancy Life expectancy is based on the CMI 2021 model with a OY• weighting of 2021 land 20201 data, standard smoothing Isk71, initial adjustment of 0.25Yo and a long-term rate of improvement of 1.5Yo pa. An allowance is included for future retirements to elect to take 50% of the maximum additional tax-free cash up to HMRC limits. Discount rates In accordance with FRS 102 the discount rate used to place a value on the liabllitles should be determined by reference to market yields on high quality corporate bonds at the reporting date. In addition, the currency and term of the high-quality corporate bonds used to set the discount rate should be conslstent with the currency and term of the obligations. Government bond yield curve5 are updated and available on a daily basis from the Bank of En8land. It is therefore relatively easy to identify a 5POt yield on Government bonds at any duration and at any date. Unfortunately, a similarly accessible corporate bond yield curNe is not so readily available. The discount rate should reflect the 'term' of the benefit obllgation. 'Terrn' has been interpreted as the welghted average duration of the benefit obligation. This is broadly defined as 'the welghted average time until payment of all expected future discounted cashflows, determined based on memberships and the financlal and demographic assumption5 at a particular tlme, The shorter the duration, the more'mature, the employer. Retail Prices Inflation This assumption is typically derived from yields available on fixed interest and index linked Government bond5 and should be consistent with the derivation of the discount rate. Pension increa5e5 The pension increase assumption is set in line with the Consumer Prices Index (CPI) assumption. As a market In CPI linked bonds does not exist. Therefore, it is necessary to estimate the lon8-term gap between RPI and CPI in order to derive a CPI assumptlon for accounting purposes. Solary growth The assumption is generally con5i5tent with the most recent actuarial valuatlon. An additional allowance for promotional salary Increases is also made. 301 Page
PURE INNOVATIONS LIMITED Notes to the Financial Statements Year ended 31 March 2024 22. Retirement benefit schemes Icontinuedl Scheme Assets Scheme Llabllltles Net Pension Llability Shown In the Statement of Flnanclal ArtiVit5 Current year Service c05t Current service cost Past service cost 1109,000) 121,000) (109,000 121,0001 Total servlce costs {130,000) (130.0001 Net Interest Interest income on plan assets Interest cost on defined benefit obligation 776.000 776,000 (603,000) (603,000) Total net Interest 776,000 1603,000) 173,000 Cashflows Employerfs contributions Member5, contributions Benefits paid 83,000 28,000 1375,0001 83,000 (28.0001 375,000 Total tashflows (264.000) 347,000 83,000 Total costs in Statement of Financlal Actlvltles 512.000 1386,000) 126,000 Opening position at l April 2023 16,461,000 112,796,000) 3,665,000 Changes in financial assumptions Changes In demographic assumptions Other experience Return on assets excludin8 net interest 772,000 79,000 {418,0001 772.000 79,000 (418,000) 396.000 396.000 Total remeasurements recognlsed In OCI 16,857,000 112,363,000) 4,494,000 Closlng posltlon at 31 March 2024 17,369,000 (12,749,000) 4,620.000
PURE INNOVATIONS LIMITED Notes to the Financial Statements Year ended 31 March 2024 22. Retirement benefit schemes IcontinuÈdl Scheme Assets Scheme Liabilities Net Pension Liability Shown In the Statement OA Flnonclal Artivftles Prior yeor SeNice cost Current service cost 1229,000} {229,000) Total service costs 1229,0001 (229.000) Ivet Interest Interest income on plan assets Interest cost on defined benefit obligation 440.000 440.000 1512,0001 1512,0001 Total net Interest 440,000 1512,0001 172.0001 Ca5hflow5 Employerfs contributions Member5, contributions Benefits paid 32,000 98,000 {190,000) 132.000) 98,000 190,000 Total cashflows 160.000) 158,000 98,000 Total costs In Statement of Flnanclal Activitles 380,000 {583,000} {203.0001 Opening position at l April 2022 16.030.000 118.589,0001 {2.559.0001 Changes in financial assumptions Changes in demo8raphic assumptions other experience Return on assets excluding net interest 7.256.000 1219,0001 1661,0001 7,256,000 1219,0001 1522,(M)O) {88,0) 139,000 (88.0001 Totsl remeasurements recognlsed In OCI 16,081,000 112,213,000) 3,868,000 Closlng posltlon at 31 March 2023 16,461,000 (12,796,000) 3,665,000 321 Page
PURE INNOVATIONS LIMITED Notes to the Financlal Statements Year ended 31 March 2024 22. Retlrement beneflt schemes Itontinued) 2024 2023 Fair value of plan a55ets at the reporting period end Equity instruments Debt instrument5 Property Cash 11,810,920 2,605,350 1,389,520 1,563,210 11,524,000 2,305,000 1,316,000 1,316,000 17,369,000 16.461.000 2024 2023 The defined benefit obligation5 ari5efrom plun5funded a5follow5.' Wholly unfunded obligations Wholly or partly funded obligations 12,749,000 12,796,000 12,749,000 12,796,000 23. Unrestricted Funds- current year Balance at l April 2023 Balance at 31 March 2024 Incomlng resources Resources expended Exceptlonal item Actuarial Gains General fund 3,134,494 8,494,037 18,289,5861 (47,000) 1286,426) 3,052,519 Pension fund reserve 3,665,000 173,000 829,000 4,620,000 Total general funds 6,799,494 8,667,037 {8,336,586) {286,4261 829,OlJO 7,672,519 Unrestrlrted Funds- prlor year Balance at l April 2022 Actuarial Gainsl Ilossesl Balance at 31 March 2023 Incoming resources Resources expended Exceptional item General fund 2,992,883 7,454,795 17,313,184) (203,000) 3,134,494 Pension fund reserve 12.559.000} 6,427,000 3,665,OlJ) Total general funds 433,883 7,454.795 {7.516,184) 6,427,000 6,799,494
PURE INNOVATIONS LIMITED Notes to the Financial Statsments Year ended 31 March 2024 24. Restrirted funds- current year Balance at l April 2023 Balance at 31 March 2024 Incomlng Resources Other resources expended galns/(losses) Chrlstmas Activities St James Place Salford MBC The Henry Smith Charity Stockport Local Fund National Lottery Stockport MBC Warrington Cheshire Community Foundatlon Warrington The Rayne Foundation Paul Hamlyn Foundation The Welland Trust Cheshire East Co-op Community Funding Edward Gosling 6.924 9,167 53.325 25,000 181 54,809 8.789 1,990 16,924) 19,167) (53,325) (25,000) (181) 154,809) {8,789) {1,990 Z7.945 8,333 3,000 35,416 33,306 3,503 4,166 127,945) (8,333) (3,0001 135,4161 133,306) (3,503) (4.166) Total unrestrlcted funds 275,854 1275,854) Other gains/{losses) The above losses relate to the transfer of the opening restricted fund balances as at l April 2023 to the former charity within a charity Pure Insight 1628. Pure Insight 1628 now operates as a separate charity. Name of restrlcted fund Description. nature. and purposes of the fund Christmas Actlvltles This is money raised to deliver activities over the Christmas period for care leavers who would otherwise be alone. Any funds remaining can be used for other artivities throughout the year as per our Just Giving statement. Steve Morgan Foundation Supporting our delivery of services to care leavers in Crewe. St James Place This funding is to support our counselling provision. Williams Foundation This enables us to help fund a small package of household goods for clients moving into a property for the first time. The Henry Smith Charlty This fund is being used to fund a Psychological Wellbeing Worker to provide counselllng, ernotlonal support and life skills training to young people aged between 16-28, who are leaving care in Stockport. National Lottery To scale our successful mentorin8 programme into two new local authority areas and secure funding for the service in the longer term.
PURE INNOVATIONS LIMITED Notes to the Financlal Statements Year ended 31 March 2024 24. Restricted funds- current year (cont5ndI Name of restricted fund Descrlptlon, nature, and purposes of the fund Spark Foundation Thls enables us to help cover some expenses for clients when they are movin8 home. Warrlngton To support the range of services we are delivering in that borough, in addition to the local council contribution. Cheshire Community Foundatlon This has helped us to provide additional activities Within our Cheshire East and Warrington areas, su¢h as the operation of a café, and psychological wellbeSng servlce and counselling. The Rayne Foundatlon This has provided match funding for our psychological wellbeing service in Cheshire East Awards for All This fund has been used to support the organisation achieve its objectives by providing funding to purchase a van. Paul Hamlyn Foundatlon This fund has helped us to support young people across a wide geographical area, by providing core funding which has been used in a variety of ways The Welland Trust Thi5 specifically has allowed us to recrult an additional post, being an employment officer who works acr055 two areas. Schroder This will be used to provide top up funding enabling some of our activities to take place. Cowop Community Funding Funding to support the training of new volunteer mentors. Edward Gosllng Foundatlon Supporting our provision in Trafford and counselling services 351 Page
PURE INNOVATIONS LIMITED Notes to the Financlal Statements Year ended 31 March 2024 24. Restrlcted funds- prlor year Balance at l April 2022 Balance at 31 March 2023 Incoming resources Resources expended Transfers Chri5tma5 Activities Steve Morgan Foundation St Jame5 Place Williams Foundation Salford MBC The Henry Smith Charity Stockport Local Fund National Lottery Spark Foundation Stockport MBC Warrington Cheshire Community Foundation Warrington Cheshire Community Foundation Cheshire East The Rayne Foundation Awards for All Paul Hamlyn Foundation The Welland Trust Schroder Cheshire East Co-op Community Funding Edward Gosling 12,850 14,160 16,500 10,000 {20,086} {16,500) 1833} 13361 6,924 9,167 336 53,325 60,CKIO 24,060 36,000 53,325 25,000 181 54,809 14,387 149,3871 123,8791 184,5051 {681 187,1061 133,2201 103,314 68 95,895 30,000 8,789 1,990 5,210 27,945 27,945 15,166 8,333 5,833 17,500 38,919 5,000 2,500 25,000 117,666) 125,000) 15.8331 125,000) 137,504) 15.000) 171,317) {318} 120,834} 8,333 10,500 34.001 3,1)00 35,416 104,623 3,821 25,000 33,306 3,503 4,166 Total unrestrlcted funds 226,916 573,330 {524,3921 275.854
PURE INNOVATIONS LIMITED Notes to the Financial Statements Year ended 31 March 2024 Anatysis of assets between fund5- ¢urrent year General Fund Deslgnated Funds Restrfcted Funds Total Tangible fixed assets Cash at bank and in hand Other net current assets Defined benefit pension asset 439,185 825,686 1,787.648 439.185 825,686 1.787,648 4,620,000 4,620.000 3,052,519 4,620,000 7,672,519 Analysis of assets between funds- prior year General Fund Designated Funds Restrirted Funds Total Tangible fixed assets Cash at bank and in hand Other net current assets Defined benefit penslon asset 503,401 1,794.428 836,665 503,401 1,794,428 1,112,519 3,665,000 275,854 3,665,OiXI 3,134,494 3,665,000 275,854 7,075,348 26. Cash used In operatlons 2024 2023 Net movement in funds 330,451 {12,4511 Adjustmentsfor.. Depreciation Interest income Transfer of Pure Insight 1628 funds Net pension costs in SOFA (Profitl/Loss on fixed asset investments IProfitl/Loss on disposal of assets 240.734 149,580) (562,2801 (126,000) (9,049) 19,280 242.018 111,6191 203,000 11,864 123,497) Movement5 in workino capital.. Ilncrease)/decrease in stock Ilncrease) in debtors Increase in creditors 14,238) (793.265) 152,760) 114,3331 {64.2981 {68,992) Net cash generated In operations 11,006,707) 261,692
PURE INNOVATIONS LIMITED Notes to the Flnanclal Statements Year ended 31 March 2024 27. Net debt reconclllatlon - Current year l April 2023 31 March 2024 Cash flows The Group Cash 1,794,428 1968,742) 825,686 1,794,428 (968,742) 825,686 Net debt rewnclllatlon - prlor year l April 2022 31 March 2023 Cash flows The Group Cash 2,156.225 1361,797) 1,794,428 2,156,225 1361,797) 1,794,428 381 Paee