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 2025
PURE INNOVATIONS LIMITED Financial Statements Year ended 31 March 2025 coMrENTS Page Cornpany Information Trustees, Report 2-10 Independent Auditors, Report 11-14 Statement of Financial Actlvltles 15-16 Balance Sheet 17 Statement of Cash Flows 18 Notes to the Financial Statements 19-36
PURE INNOVATIONS LIMITED Legal and Administrative Details Company number 5241249 Charlty number 1111252 Registered office Prospect House Newby Road Industrial Estate Newby Road Hazel Grove Stockport SK7 SDA Principal address Prospect House Newby Road Industrlal Estate Newby Road Hazel Grove Stockport SK7 5DA Trustees Miss N Hinton Mrs H White Mrs L Powls Ms J Walker Mr P Greenhalgh Mr C Herningway Mr S Bradshaw Mrs D Laming {appointed 18 June 2025) th Corporate ManaBement Team Mr S Brierley- Director of Finance Mrs L Parrott-Bates - Chief Executive Mr P Locke- Director of Infrastructure Miss Monika Wieczorek-Alhamoud - HR Director Mrs A Noon - Director of Learning and Development Mrs D Sldderley- Director of Employment Bankers The Co-operative Bank PIC l Balloon Street Manchester M4 4BE Audltors Mitchell Charlesworth (Audit) Llmlted 3rd Floor 44 Peter Street Manchester M2 SGP
PURE INNOVATIONS LIMITED Trustees. Report Year ended 31 March 2025 The trustees are pleased to present their annual dlrectors, report together wlth the consolldated flnancial statements of the charity and its subsidlaries for the year ending 31 March 2025 which are also prepared to meet the requirements for a dlrectors, report and accounts for Companies Act purposes. The financial statements comply with the Companles Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective l January 20151. Purposes and Actlvltles Pure Innovations aim5 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 Puf poses by all or any of the followin8 means: The rellef of unemployment for the public benefit In such ways as may be thought fit, Includlng assistance to find employment. The advancement of education, training or re-training, particularly amongst unemployed people and providing unemployed people wlth work experlence and amongthe providers of education,tralningand workexperience to beneficiaries of the Charity. The provision or a55i5tance in the provlslon of tare and recreational facilities in the interests of sotial welfare for those who by rea50n of their youth, age, infirmity or disablement, poverty or social and economic circurnstances, have need of such facilities Wlth the object of irnproving the beneficiaries, conditions of life. The overall aim is to promote independence. increase choice and provide more appropriate supportto people to make the most of their capacity and potential. Following the transfer of the undertaking from Stockport MBC Social Services Department on 1st July 2005, the following activities have been developed: Care a¢tivfties We provide support for clients that are neurodivergent, people with learning dlsability, and or mental or physical and sensory disability, a5515ting them a5 individuals to develop skills, independence and wellbeing as much as possible. Thi5 could be undertaken within our catering services 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 produ is made by our clients with a disability. Other opportunlties exist through the One Voice, which seeks to raise awareness throughout Stockport of the issues faced by people who are from the m05t disadvantaged area by producing material for a community radio station. We a150 have various arts, and animation offers in various locations and we are looking to develop and broaden these for the benefits of the client group. This has included developing a ceramics, animation and EaminE offer to our clients 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 Icontlnued) Year ended 31 March 2025 Pure Innovatlons, Employment Services are dedicated to helping individuals who are long-term unemployed or socially disadvantaged-especially those overlooked or excluded by malnstream service providers find meanin8ful and lasting employment. We collaborate with major public and private sector employers to promote inclusive hiring practices. Through education, encouragement, and ongoing support. we help these employers build diverse teams that include people wlth disabilities, A key focus of our service is supporting individuals at risk of losing theirjobs, working to identify and implement strategies that help them remain employed. To further assist employers, we offer free disability awarenes5 training to their workforce. This not only helps diversify thelr teams but also enhances the skills and understanding of their existing employees. We offer a wlde range of Education and Tralnlng courses, including both accredited and non-accredited programmes. One of our key initiatives is our travel training programme, which operates across several boroughs In Greater Manchester. Our approach focuses on building independence and practical skills, helping to improve life opportunities particularly for young people with special educational needs. We work closely with education providers to ensure that employment is a realistic and aspirational outcome for these individuals. In addition, we operate 13 Supported Internship sites across Greater Manchester In partnership with major corporate and public sector organisations. These internships are designed to increase the number of people with additional needs moving into 5UStainable employment. Pure College became operational in September 2022 and opened its doors as a post-16 specialist college for young people wlth 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, associated skills. Each student works towards achieving either a regulated qualification or bespoke outcomes through a RARPA-ba5ed curriculurn {Recognisin8 and Recording Progress and Achlevementl. Learners are also supported to improvetheir maths and English skills as well as work towards the outcomes identified on their Educatlon, Health and Care Plan. 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- Through a direct contract with Stockport MBC, we operate as a central point of contact for anyone In the Borough with a social need. By working Wlth a network of subcontractors and delivering services directly where needed, we aim to address as many of these identified needs as possible. This proactive, preventative approach is desi8ned to delay or reduce the need for more intensive health and soclal care interventions. A key focus Is tackling loneliness and social isolation growing concerns in many communities. The Community Hub seeks to improve wellbein8 by helping individuals reconnect with their local communities and rediscover a sense of purpose and belonging. We provide a safe, welcoming space where people can build meaningful connections, strengthen their SUPPOrt network5, and develop greater reslllence and independence. The Mental Health Network, commlssloned by Stockport MBC. supports individuals with endurin8 mental health challenges by promoting community integration and helplng them connect with activities and areas of personal interest. Taking a holistic approach to health and wellbeing. the Network offers access to complex caseworker5 and delivers a specialist counselllng service. The team also facilitates a range of support and peer groups, alon8side more intensive therapy-based counselllng sessions. These Services are designed to equip individuals with the tools, insight, and supportive networks they need to sustain their mental wellbelng. As a result, people are less reliant on clinical interventions, helping to prevent escalatlon into more intensive, costly, and restrictive services. This proactive approach has led to opportunities for direct funding and commissioning from the NHS. Additionally, we are contracted by Pennine NHS to deliver Individual Placement Support IIPSI for people with severe mental illness across all ten Greater Manchester local authority areas. This service focuses on helping individuals with mental health or learning disabllity dlagnosis secure meaningful employment. We support over 1200 clients with a learning disability, social, emotlonal and mental health difficulties or with neurodiversity across Greater Manchester to have fulfilled days with meaning and purpose. Our support leads to many people becoming better integrated within their local communities, to work in projects of interest that build independence. social skills, confidence, and community engagement. Many of these projects have become a valuable community resource and our ¢lients have contribtjted to these in many ways
PURE INNOVATIONS LIMITED Trustees, Report Icontlnuedl Year ended 31 March 2025 Public benefit The main artivities are outllned In the section above. They are all undertaken to further the charity's purpose for the publlc benefit, with due regard to the Charity Commisslon's guidance on this subject, including the guidance "Public benefit: running a charity IPB21." 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 200 people and 55 young people have been travel tralned to use publictransport independently; 32 young people are on track to achieve accreditation for learning. We have supported 300 people in Pure Support and care to engage in meanlngful activities and 150 people are better connected to thelr communities or have been supported through our mental health network and talking therapies. The activities provided for the clients were in the areas of: Arts, Pottery and Drama Catering and Retail Greenspace Health and Wellbeing Talking Therapy Learning Programmes- Work and Life skills Pre-Employment and Placement Supported in-house session Supported Internship Travel Training Supported Employment Health and wellbeing Cookery and Baking Sport and Exercise Muslc and Dance Health and Beauty IT Woodwork We survey our clients on 3 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 You are learning at College 91% responded ye5 86% responded ye5 81Yo responded yes 81% responded yes 86% responded yes You are becoming more independent at Colle8e The course is preparlng you for work You have made friends at College In terms of Supported Employment Servicesi people told us the following: Do you feel that your employment goals were achieved 92Yo responded yes 89% responded yes 87% responded yes Do you feel that you were given the preparation for work Do you feel that we understood your aspirations and help identifyyourgoals
PURE INNOVATIONS LIMITED Trustees, Report (Contlnuedl Year ended 31 March 2025 In our Support ond Core provision they told us the following: Are staff caring and kind 97% responded yes Do you enjoy the project you attend Do you feel you're listened to and heard 100% responded yes 96% responded yes Our stoff survey resulted In 60% of staff completing and telling us the following: I feel valued and recognised for the work I do 73% responded yes 96% responded yes We all take Health and Safety seriously Senior leaders make the effort to Ilsten to the team 83% responded yes 89% responded yes I think I have a good balance between my work and personal life I feel the work I do at Pure positively impacts on clients lives I feel Pure cares about my wellbeing and rnental health 99% responded yes 89Yo responded yes Flnanclal revlew We have rnanaged 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 authoritie5, colle8es and through other government contract5. However, there is an Increasing reliance upon clients in charge of their own budgets, opting to use that moneyto spend on ourservice deliverytothem. We areseekingto provide a level ofservlcewhlch goes beyond just retaining those individuals but adding to their number. The charitrf5 profit for the year (excluding pension service costs) at £309k The accountingtreatment of the GMPF penslon fund has changed and we have not recorded the surplus on our portion of the fund as at the end of the financlal year, and the defined benefit pension scheme asset has been derecognised. The risk register identifies the major risks as belng around the loss of key staff and generally high staff turnover in the business. reductlons in income for delivery of Core services in response to public sector austerity cuts and the impact of failures of IT system5. We raised salary levels in response to the identifled risk and that has resulted in a better recruitment and retention of those types of employees. We are also investing in new IT system5 that will add to our operational efficiency, although the risk of failure of those systems is a constant risk which we continue to monitor regularly.
PURE INNOVATIONS LIMITED Trustees, Report (connUeI Year ended 31 March 2025 Reserves policy Reserves are needed to bridge the gap between the spending and receiving of income and to cover unplanned emergencies. The Board of Trustees has set a minimum reserves target based on potential closure costs and the financial risks associated with ending contracts. The current level of reserves exceeds thi5 minimum threshold. In the coming months, the Board will consider how best to use the surplus funds to benefit the organisation's beneficiaries. At the same time. the Trustees are also reviewing the need for additional reserves to support potential future investment. Investment powers and policy The investment approach has been reviewed to ensure that the company'5 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 business, principally in IT 5V5tem5, and upgrading of propertles we occupy, either by Internal refurbishment or moving to more appropriate buildinBS. 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 expertlse and grow new funding streams. Research and development artfvltles of the charlty We continue to look at identified areas ofgood practice across the UK to replicate and enhance ouroffer and therefore improve the outcomes for disabled and disadvantaged people in our communities. Over the past 12 months, we have focused on becoming a more digitally aware organisation. This includes embracing opportunities, where appropriate, to integrate Artificial Intelligence IAII into our practices and better meet the expectations of younger people engaging with our servi. As most of our work tskes place remotely within the community, we are also workin8towards becoming a paperless organisation. with a strong emphasis on en5uringonline access to our Servi5. Our work replicates part of the governmenys agenda of supporting 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. Social, economic and environmental Impart As a charity, we measure the impact of ourwork through a combination of data collection, feedback, and evaluation methods. We monitor individu31 progress using Outcomes such as improved wellbein& skills development, and increased independence. which in turn enhance access to opportunities. From an economic perspective, we assess how our support helps people gain employment and achieve financial stability and independence. At the community level, we tackle i55uÈs such as isolation and loneliness by fostering social engagement, building connections, and encouraging local collaboration. Environmentally, we evaluate our inltiatives by measuring resource usaBe, promoting sustainable practlces, and tracking the positive ecological changes driven by our projects.
PURE INNOVATIONS LIMITED Trustees, Report Icontlnued) Year ended 31 March 2025 Structurei governance 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 Association 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 theArticles Of A550ciation and the board of trustees have approved amended internal governance rules. Recruitment and appointment of Trustees Members of the Board of Directors of the company are also charity trustees for the purposes of charlty law and under the companws Articles ofAssociation are known asTrustees. Underthe requirements ofthe Memorandum and Articles ofAssociation trustees are appointed for a term of 3 years that can be renewed for a further 2 terms of 3 years and in exceptional circumstances. if 75% of the members think that it is in the best interest of the charity, they tan be appointed for a further period. Trustee Inductlon and tralnin8 We have developed a trustee indurtion pack, and training 15 undertaken with the trustees in accordance with the trainin8 plan identified following annual trustee appraisals. Reference and administrative detai15 Reference and administrative details are shown in the legal and administrative details page of the financial statements. Organisation The dirertor5 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 charlty durlng the year were as follows.. Key management personnel: Trustees. and Dlrertors Joint Chair- Ms N Hinton M5 J Walker Trustees.. Mrs H White Mrs L Pow15 Mr P Greenhalgh Mr C Hemingway Mr S Bradshaw th Mrs D Laming (appointed 18 June 20251 Key management personnel: Executive Management Team Dirertor of Finance Mr S Brierlev Chief Executive Mrs L Parrott-Bates Director of Infrastructure Mr P Locke Director of Learning and Development Mrs A Noon HR Director Miss Monika Wieczorek-Alhamoud Director of Employment Mrs D Sidderley
PURE INNOVATIONS LIMITED Trustees. Report Icontlnuedl Year ended 31 March 2025 The Board of Pure Innovations which comprises the trustees of the charity meet bi-monthly. Members ofthe Executive Management Team are in attendance for those meetings. The trustees are responsible for the strategic direction 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 charity 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 recoEnises 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 with disability and is recognised as a Disability Confident Employer by the DWP. We have a strong track record in attracting and retaining people with a disability at all levels of the charity. We regularly make reasonable adjustment5 for new and existin8 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 identifies as having some form of disability. We believe thi5 to be a conservative figure as some employees chose not to declare their disability or do not re8ard themselves as such. Pure recognises that as a 5peciallst employer in the local community it has the opportunity to achieve a significant impact on opportunitie5 for disabled people vla the development of its employment policy and promotion of work- related positive action initlatives. These help to counteract longstanding disadvantages in gaining access to work and remaining 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 newsletters, team meetings, supervisions and an appraisal system which identifies training and development needs. Within the Pure group there is an exchange of good practice, staff attend disability awareness training and successful developments are promoted on our web51te and in our social media. Our vacancies are advert15ed 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 place which identifies and supports those we see as the potential future leaders of the charity. Employee involvement Involving all employees is fundamental to how the Company operate5, Wlth open communication at all levels. Thegroup systematically provides employees with information on matters 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 15 encouraged, as achieving a common awarenes5 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 induttion process during the early days of their employment. Included within the induction phase is a session on the company's values which underpins the company's approach to staff, volunteers and service users. Pure's values are a5 follows.. Respectful ..... Responsive ..... Aspirational . Inclusive Always treat people the way you would wish to be treated no matter what the situation. By listening to others, we solve problems by finding solutions. 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 (Contlnuedl Year ended 31 March 2025 Pay policy for senior stsff The pay of the Executive Management Team has been determined by the Board of Directors. Related parties and co.operation wlth other organlsatlons Helen White is director of a marketing organisation to which Pure Innovations pays a small annual subscription, none of our trustees receive rernuneration or other benefit from their work wlth the charity. We have several partnership links outslde of the contractual relationships identified above, these partnerships links are with a wide variety of organisations who we work in collaboration with. Risk management A risk register has been prepared using Charity Commission guidance on the subject. These have been approved bythe Board of Trustees and amended Iwhere appropriatel to changes in the organisation and also in external factor5. The risks are identified along with the potential impact and the steps to mitigate risk. Each risk is then scored by using the formula la*b+bl where a= Likelihood and b= Potential impact. and thosewith a deemed high scoreare subjectto review and artion to monitor the major risk5. Trustee< responslbilitie5 in relation to the financlal statements The charity trustees Iwho are also directors for the purpose of company lawl are responsible for preparing a trustees, annual report and financial statements in accordance with applicable law and United Kingdom Accountlng Standards {United Kingdom Generally Accepted Accountin8 Practice). Company law requires charlty trustees to prepare financial statements for each year which give a true and fair vlew of the state of affairs of the charitable company and the group and of the incoming resources and appllcation of resources, including the income and expenditure, of the charitable group for that period. In preparing the financial statements, the trustees are required to: Select suitable accountin8 policies and then apply them consistently Observe the methods and principles in the Charities SORP Make judgements 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 statements 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 accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsibleforsafe8uardingthe assets of the charity and thegroup and hencetaking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and inte8rity of the corporate and financial information included on the charitable company'5 website. Legislation In the United Kingdom in governing the preparation and dissemination of financial statements may differ from legislation In other jurisdictions.
PURE INNOVATIONS LIMITED Trustees, Report {Contlnuedl Year ended 31 March 2025 Audftor Mitchell Charlesworth was appointed as auditor at the last AGM in April 2024 and, in accordance with Section 485 of the Companies Act 2006. a resolution proposingthe re-appointment of Mitchell Charlesworth was passed by the Board of Trustees at Pure Innovations Annual General Meeting in April 2025. Statement as to disclosure to our auditors In so far as the trustees are aware at the time of approvin8 our trustees, annual report: There is no relevant information, belng Information needed by the auditor in connection with preparing their report, of which the group's auditors is unaware; and The trustees, having made enquiries of fellow directors and the group's auditor that they ought to have individually taken, have each taken all steps that helshe is obliged to take as a director in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. By order of the tru5tee5 N Hinton Trustee Date 10 I Page
PURE INNOVATIONS LIMITED Independent Auditor's Report to the Members of Pure Innovations Limited Year ended 31 March 2025 Opinion We haveaudited thefinancialstatements ofPure Innovations Limited fortheyear ended 31 March 2025 which comprise the Statement of Financial Activities. the Balance Sheet and Statement of Cashflows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that ha5 been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standord applicable in the UK and Republic of Irelond (United Kingdom Generally Accepted Accounting Practice}. In our opinion the financial statements- give a true and fair view of the state of the charitls affairs as at 31 March 2025, and of the charitws incoming resources and application of resources for the year then ended- have been properly prepared in accordance with United Kingdom Generally Accepted Accountin8 Practice. and have been prepared in accordance with the requirements of the Companies Art 2006. Basis for opinion We condutted our audit in accordance with International Standards on Auditing {UKI {1SAs IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit of the financial staternents section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, intluding the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibillties in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relatlng to golng concern In auditing the finantial 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 any material uncertainties relatingto eventsor conditions 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 statements are authorised for issue. Our responsibilitie5 and the re5ponsibilitie5 of the trustees with respect to going concern are described in the relevant Sections of this report. Other information The other information comprises the information included in the trustees, annual report, other than the financial Statements and our auditor's 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 expre55 any form of assurance conclusion thereon. Our responsibility 15 to read the other information and. in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
PURE INNOVATIONS LIMITED Independent Auditor's Report to the Members of Pure Innovations Limlted Year ended 31 March 2025 Oplnlons on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit". .the information given the trustees, report for the financial year for which the financial statements are prepared is consistent with the financial statements: and .the trustees, report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exceptlon We have nothing to report in respect of the following matter5 in relation to which the Companies Act 2006 requires us to report to you if. in our opinion.. the information given in the financial statements is inconsistent in any material respect with the trustees, report. sufficient accounting records have not been kept. the parent charity's 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 trustee5 As explained more fully in the trustees. responsibilities statement the trustees (who are also the directors of the charitable company for the purposes of company law} are responsible for the preparation of the financial statement5 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 mi55tatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the chariws ability to continue as a going concern, disclosin& as applicable, matters related to goin8 concern and using the going concern basis of accounting unless the trustées either intend to liquidate the group or the parent charity or to cease operations, or have no realistic alternative but to do so. Auditorfs responslbllltles for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economi decisions of users taken on the basis of these financial statement5. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularSties, Sncluding fraud. The extent to which our procedures are capable of detecting irregularities. including fraud, is detailed below. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those lèading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements. as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurrlng due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 121 Page
PURE INNOVATIONS LIMITED Independent Auditor's Report to the Members of Pure Innovations Limited Year ended 31 March 2025 Extent to which the audit was consldered capable of detectlng 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 Irregularftles In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non- compliance with laws and regulations. we considered the following: the nature of the sector. control environment and the organisation's performance the organisation's own assessment of the risks that irregularities may occur either as a result of fraud or error,- the results of our enquiries of management and Trustees of their own identification and asse55ment of the risk5 of irregularities; any matters we identified having obtained and reviewed the organi5ation'5 documentation of their policies and procedures relating to: identifying, evaluating and complying with laws and re8ulation5 and whether they were aware of any Instances of non-compliance; detecting and responding to the risk5 of fraud and whether they have knowledge of any actual, suspected or alleged fraud; the internal controls e5tabli5hed to mitlBate risks of fraud or non-compliance wlth laws and regulations. and 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 opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud. As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: (il The presentation of the charitable company's Statement of Financial Activities, lill the charitable companvs accounting policy for revenue recognition, liiil the classification of restricted funds in the financial statements, and Ivi) the management override of controls. In common with all audits under ISAS (UK), we are also required to perform specific procedures to respond to the risk of rnanagement override. We also obtained an understanding of the legal and regulatory framework that the organisation operates in. focusing on provisions of those laws and regulations that had a direct effett on the determination of material amounts and disclosures in the financial statements. The key law5 and regulations we considered in this context included the UK Companies Act and local taxation legislation. In addition. we considered provisions of other laws and regulations that do not have a direct effect on the financial Statements but compliance with which may be fundamental to the charitable company's ability to operate or to avoid a material penalty. The key laws and regulations we considered in this context included employment law, health and safety at work, GDPR, and the UK Companies Act and Charities SORP. Audit response to rlsks 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. 131 Page
PURE INNOVATIONS LIMITED Independent Audltor's Report to the Members of Pure Innovations Limited Year ended 31 March 2025 In addition to the above, our procedures to respond to risks identified included the following.. reviewing the financi31 statement disclosures and testingto supporting documentation to assess compliance with relevant law5 and regulations described above a5 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 those charged with governance and reviewing 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- assessin8 whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the busine55 rationale of any significant transactions that are unusual or outside the normal course of business. 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. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: http:/lwww.frc.org.uVauditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report Is made solely to the charitWs trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might State to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity'5 trustees as a body. for our audit work, for this report. or for the opinions we have formed. Ali50n Buckley (Senlor Statutory Auditor For and on behalf of Milchell Charlesworth (Audit) Limited rd 3 Floor 44 Peter Street Manchester M2 5GP Statutory Auditor Mitchell Charlesworth (Audit) Limited is ellgible to act an auditor in terms of section 1212 of the Companies Act 2006. 141 Page
PURE INNOVATIONS LIMITED Statement of Financial Activities (incorporating income and expenditure account) Current Year-year ended 31 March 2025 Unrestricted Restrlcted Funds Funds Total Funds 2025 Notes Penslon Income Donations and legacies Other trading income Income from charltable activltles. Provision of care, empJoymen¢ catering & other services 10,865.065 11,276 IOm6,341 Investment Income 38,136 223,000 261,136 Total Income 10,903,201 11,276 223,000 11,137,477 Expenditu Expenditure on charitable activitles.. Provision of care. employment, catering & other5ervices 110.599.620) (5,800} (16.0001 (10,621rt20) Total expenditure 110,599,620) {5,8001 116,000) (10.621.420) Net incoming resources before other recognised 8ains and losses 303,581 5A76 207,000 516,057 Other recognised losses Net incoming resources before other recognlsed galns and losses 303.S81 5,476 207,000 516A)57 Derecognition of the defined benefit pension scherne asset 20 (4,827,000) (4,827AIOO) Net movement In fund5 303,581 5,476 14.620,000) (4.310,9431 Total funds brouEht forward 3,047,719 4.800 4.620.000 7.672.519 Total funds carrled forward 3351,300 10,276 3,361,576 The Statement of Financial Activities includes all gains and losses in the year.
PURE INNOVATIONS LIMITED Statement of Financial Artivities (incorporating income and expenditure accountl Prior Year- Year ended 31 March 2024 Unrestricted Restricted Funds Funds las restated) las restated) Total Funds 2024 Notes Pension Income Donations and legacles other trading income Income from charitable activities: Pmvision of care, employment, catering & otherservices 8,444,457 8,444,457 Investment Income 49,580 173,000 222,580 Total Income 8,494,037 173,000 8.667,037 Expenditure Expendlture on charitable activities., Provision of care, employment, catering & other services 8,289,586 47,000 8,336,586 Total expendlture 8,289,586 47,000 8,336,586 Net Incoming resources before other recognlsed galns and105ses 204,451 126,000 330.451 Other recognised105ses 1286,426) {275,854} {562.280) Net incomln8 resources before other recognised 8ains and losses 181,9751 1275,8541 126,000 (231,8291 Artuarial surplus on defined benefil pension scheme 829,000 829,000 Net movement in funds {81,9751 (275,8541 955,iYJO 597,171 Transfers 14,800) 4,800 Total funds brought forward 3,134,494 275,854 3,665.000 7,075,348 Total funds carrled forward 3,047.719 4,800 4,620,000 7,672,519 The Statement of Financial Activities includes all gains and losses in the year.
PURE INNOVATIONS LIMITED Balance Sheet Year ended 31 March 2025 2025 2024 Notes as restated) (as restated) Fixed assets Tangible assets Investments 13 14 417A37 407,278 439,185 213,002 824,715 652,187 Current a55ets Stocks Debtors Investments Cash at bank and In hand 15 16 17 45,940 1.334,730 11,235 1.914.733 57,871 2.018,286 19,435 825,686 3.306.638 2,921,278 Creditors: amounts falling due within one year 18 (769,777) (520,946) Net current assets 2.53661 2,400,332 Total assets less current Ilabllltles 3,361,576 3.052,519 Defined benefit pension scheme asset 21 4.620.000 Total net assets 3,361,576 7,672,519 Funds Unrestricted funds: General Pension fund reserve 22 19 3,351,300 3.047,719 4,620,000 Total funds 3351,300 7,667,719 Restricted funds 23 10,276 4,800 3,361,576 7,672,519 These financial stalements were approved by the members of the committee on ...... .. .... behalf by: . and are slgned on thelr MLZ/- N Hinton Trustee Company Reglstration No. 5241249 (England and Wales)
PURE INNOVATIONS LIMITED Consolidated Statement of Cash Flows Year ended 31 March 2025 2025 2024 Notes Cash flows from operatlng actlvltles Cash generated in operating activities 24 1,475,707 {1,006,7071 Cash used In Investlng activities Purchase of tangible fixed assets Disposal proceeds Df tangible fixed a55et5 Dlsposal of Investments Purchase of Investments Interest Income (230,4481 1195,798} 39,683 1234,0311 38,136 267,496 183,3131 49.580 Net cash used in Investlng actlvltles (386,660) 37,965 Net increase In cash and cash equlvalents 1,089,047 (968,7421 Cash and cash equivalents at beginning of year 825,686 1,794,428 Cash and cash equlvalents at end of year 1,914,733 825,686
PURE INNOVATIONS LIMITED Notes to the Financial Statements Year ended 31 March 2025 Company information Pure Innovations Limited is a prlvate company limited by guarantee and Incorporated in England and Wales. The registered office is Unit 5, Station View, Hazel Grove, Stockport, SK7 SER. Ac¢ountlng Policies The principal accounting policies adopted. judgements and key sources of estimation uncertainty in the preparatlon of the financial statements are as follows- Basls of preparatlon The financial statements have been prepared in accordance with the charlty's governingdocument, the Companies Act 2006 and"Accounting and Reporting by Charitles: Statement of Recommended Practice applicable to charlties preparing their accounts in accordance with the Financial Reporting Standard appllcable in the UK and Republic of Ireland IFRS 1021 (effective l January 2019)". The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterlin& which is the functional currency of the charity. Monetary amounts In these financial statements are rounded to the nearest £. The financial statement5 have been prepared under the hlstorical cost convention. The principal accounting policies adopted are set out below. Going concern The Trustees have a55e55ed whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the chartty to continue as a going concern. The Trustees have considered the level of fund5 held and the expected level of Income and Èxpendlture for 12 months from authorising these financlal statements. The budgeted income and expenditure are sufficient with the level of reserves for the charity to be able to continue as a goin8 cOnrn. Having regard to these matters the Trustee5 consider it approprlate to prepare the financial statements on a going concern basis. Income Income is the amount derived from the provision of goods/servi5 and stated after trade dlscounts, other sale5 taxes. and VATwhere appllcable. Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item{s) of income have been met, it is 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, 15 recognised when the charity has entltlement 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 nol deferred. Grants are deferred to future periods only when this is specified by the funder or other precondition5 of the grant are not yet met. Investment income is recogni5ed on a receivable basis.
PURE INNOVATIONS LIMITED Notes to the Flnancial Statements Year ended 31 March 2025 Accounting Pollcles IcontinuÈdl Expenditure Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headin8S- Costs of raising funds are the direct and indirect costs of raising funds for charitable purposes. including applying for grants. Charitable activitie5 include expenditure associated with the delivery of its activities and 5ervice5 provided for Its beneficiaries and include both the dirett costs and support costs relating to these activities. Support costs include central functions and have been allocated to activity cost categories directly as well a5 indirectly, based on an appropriate basis a5 detailed in the accounts. Other expenditure represents those items not falling into any other headlng. Funds structure Restricted funds are funds subject to specific restrictive conditions imposed by the donor or by the purpose of the contract / 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 discretlon of the trustees in furtherance of the general objectives of the charity. Designated funds are funds which have been allocated or desi8nated for specific purposes by the charity out of unrestricted funds. Volunteers The value of services provlded by volunteers is not included in the financial statement5. Donated 8oods. services. and facilities On any occasion where goods and services are provided to the charity as a donation that would normally be purchased from our suppliers, th15 contribution is 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. TanBlble flxed assets All fixed assets are initially recorded at cost. Depreciation is calculated 50 as to write off the c05t of an asset, 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 vehlcles 33% of cost 20% of cost 25/33% of cost 10120% of cost 33% of cost
PURE INNOVATIONS LIMITED Notes to the Financial Statements Year ended 31 March 2025 Accountlng Pollcles Icontlnuedl Flxed asset investments 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 risk, 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. Pensions The company operate5 two pen5i0n schemes for employees. Employees of Pure Innovation5 Limited have been eli8ible to join the Greater Manchester Pension 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 also 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 prepaid 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 provisions Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. Financlal instruments The charity only has financial assets and financial liabilities of a kind that quallfy as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exceptlon of bank loans which are subsequently measured at amortised cost using the effertive interest method. 21 IPage
PURE INNOVATIONS LIMITED Notes to the Financial Statements Year ended 31 March 2025 Legal status 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 7 {2024'. 8). Judgements and key sources of estlmatlon uncertainty In the application of the charitls accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount 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. The estimates and underlying a5sumption5 are reviewed on an ongoing basis. Revisions to accounting estimates are retognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affetts both current and future periods. Income from charftable actlvities Unrestrirted Restricted Total Funds Unrestricted Total Funds Funds Funds 2025 Funds 2024 Care services Supported employment Catering Other activities 3N73,629 5,678,470 1,294,713 418,252 3,473,629 3,254,598 5,678,470 3,632,378 1.301,750 1,115,259 422,491 442,222 3,254,598 3.632.378 1,115,259 442.222 7.037 4,239 IOA65,065 11.276 10,876,341 8,444,457 8,444,457 Investment Income Unrestricted Funds Total Funds Unrestricted Total Funds 2025 Funds 2024 Investment income Pension finance income 38,136 223.1)00 38,136 223,000 49.580 173,000 49.580 173.000 261,136 261,136 222,580 222,580 The investment income arises from interest bearing deposit accounts. 221 Page
PURE INNOVATIONS LIMITED Notes to the Financlal Statements Year ended 31 March 2025 Analy515 of expenditure on charitable activities - current year Care Employment Services Support Other Actfvltles Total 2025 Catering Payroll, and wage costs Pension service cost Cost of sales and kitchen equipment Premises Costs General administration Travel and subsistence Equipment Depreciation Profes5ion31 including IT Irrecoverable VAT Support costs (note 101 Governance 2,089,801 5,097 4.594,079 8333 778.739 1,910 317,691 660 7.780.310 16,000 17.588 185,870 56,156 59.436 13,045 42 68.975 11,492 72.399 5,852 12.127 38,250 4,040 746.209 8,437 578,780 178.559 2,533 4.204 23,792 158 5.481 456 4,418 806 596,568 438,885 70,637 140,457 43.495 12,127 69.838 4,040 1.432,862 16.201 317 27.711 3,560 456,471 5.161 171.063 1.934 59.119 669 2,888,942 5,570,235 1,769,225 393,018 10,621N20 Expenditure on charitable activities was £10,621.42012024'. £8,336,5861 of which £10,615,62012024.' £8,336,586) was unrestricted and £5,80012024: £Nil) was restricted. Analy515 of expenditure on charitable activities - prior year Care Services Employment Support Other Activities Total 2024 Catering Payroll, and wage costs Pension service cost C05t of 5ale5 and kitchen equipment Premises costs General administration Travel and subsistence Equipment Depreciation Professional including IT Support Costs (note 101 Governance 1.851.731 18,135 2,893.412 20,240 662.762 6,215 287.216 2,410 5.695,121 47,000 10,996 189,415 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 51,590 1,317,154 15,535 50,701 13,030 66,892 6.566 8,832 29.741 567.220 6,690 6,578 2.050 3.256 277 443 508.229 5,994 19.345 174.156 2,054 2,061 67,549 797 2,715.641 3,663,325 1.585,426 372,194 8,336,586
PURE INNOVATIONS LIMITED Notes to the Financial Statements Year ended 31 March 2025 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 function. HavinB identified its governance costs, these along with the remaining 5UPPOrt costs, are attributed 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 Actlvities Total 2025 Care Servlce5 Catering Centrol support C05t5,' Payroll, and wage5 COSts Cost of sales and kltchen equipment Premlses costs 246,941 13 46,182 15,236 7,838 3,841 6511 50.293 9,747 10.569 403,684 21 92,542 31,983 775,150 75,494 24.906 12,813 6,280 107.583 82.216 15,934 17.278 17,306 5,709 2,937 5,981 1,973 l.ois 497 144,963 47,824 24,603 12,058 206,581 157,870 30.596 33,177 General administration Travel and subsistence Equipment Depreciation Professional including IT Marketing Irrecoverable VAT 24,663 18,847 3,653 3,961 8.524 6,514 1.262 1,369 456,471 746,209 171,063 59,119 1.432,862 Governance costs-. Audit and archiving costs 5,161 8.437 1,934 669 16.201 461,63Z 754,646 172,997 59,788 1,449,063
PURE INNOVATIONS LIMITED Notes to the Financlal Statements Year ended 31 March 2025 Analysis of support costs- Prlor year Employment Support Other Activities Total 2024 Care Services Catering Central support costs.. Payroll, and wages costs Cost of sales and kitchen equipment Premise5 COSt5 General adrninistration Travel and subsistence Equipment Depreciation Professional including IT Irrecoverable VAT Re-organisation costs 236,185 263.600 80.934 31,391 612,110 15 124,510 35.832 11,894 15,538 231,902 215,973 54,647 14,733 48.043 13,826 4.589 5,995 89.480 83,334 21,086 5.685 53.619 15,430 5.122 6,691 99,867 93,007 23,533 6,345 16,463 4,738 1,573 2,055 30,662 28,556 7,225 1,948 6,385 1,838 610 797 11,893 11,076 2,803 755 508,229 567.220 174,156 67,549 1,317,154 Governance costs- Audit 5,994 6,690 2,054 797 15,535 514,223 573,910 176,210 68,346 1,332,689 Net income/lexpenditure) for the year 2025 2024 This is stated after charging.. Depreciation Auditor's fees - for audit Services for financial statements Other recognised losses 218,708 13,650 1,600 240,734 13,000 1,500 562.280 The other recognised losses relates to the transfer of the Pure Insight 1628 funds to the separate charity which carries on thi5 work. io. Analysis of staff cost5, trustee< remuneration and the cost of key management personnel 2025 2024 Wages, salaries, and other staffing Costs Social security costs Pension costs {including service costl 7,833,101 511,820 226,539 5,685,623 429,067 239.541 8,571,460 6,354,231 Pension funding wlthin the Statement of Financial Activities includes £16,00012024: £47.0001 in relation to the current service cost as included in the pension scheme note. 25 IPage
PURE INNOVATIONS LIMITED Notes to the Financial Statements Year ended 31 March 2025 io. Analysis of staff cost5, tru5tees' remuneratlon and the cost of key management personnel Icontlnuedl Two employee's12024.' two) had emoluments in excess of £60.000 {2024: £60.0001. These employees fell into the following pay bands: 2025 No 2024 No £60,000- £69,999 £70,000- £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 theTrustwere £361,79712024: £353,440) of which the trustees received £nil12024= £nill. A strong team of volunteers that support our operations have given their time in the period, No value ha5 been attributed to volunteer time. ii. Staff numbers The average monthly number of full time employed by the charity during the year was- 2025 No 2024 No Full time employees 274 257 12. Corporation taK As a charity, the company is exemptfrom tax on Income and gains falling within section 505 oftheTaxes Art 1988 or Section 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.
PURE INNOVATIONS LIMITED Notes to the Financial Staternents Year ended 31 March 2025 13. Tanglble flxed assets IT Systems Catering Fixtures and Leasehold Equlpment FfttlnEs Improvements Motor Vehlcles Total Cost At 1st April 2024 Addition5 Disposals 339,774 34,507 169,6031 262,841 29.742 (38,4961 46.361 17,000 (1,108} 253,408 57,706 273,446 91,493 {85,196) 1,175.830 230.448 1194,403) At 31 March Z025 304,678 254,087 62,253 311,114 279,743 1,211075 Depreclatlon At 1st April 2024 Charge for the year Eliminated on disposal 212,834 79.688 {69,603} 204.044 25,654 138.4961 35.097 6,308 {1,108) 94,646 51,933 190,024 55,125 151,708) 736,645 218,708 1160,915) At 315t March 2025 222,919 191.202 40.297 146,579 193,441 794,438 Net book value At 31st March 2025 81,759 6285 21.956 164,535 86,302 417N37 At 31st March 2024 126,940 58,797 11,264 158,762 83,422 439,185 14. Investments 2025 2024 Market value at l April 2024 Additions at cost Disposals at market value Net profiVlloss} 213.002 234,031 139.6831 {72} 388,136 83,313 1267,496} 9,049 Market value at 31 March 2025 407,278 213,002 All investments are carried at their fair value. Investment In equities and fixed interest Securities are all traded in quoted public rnarkets, prlmarily the London Stock Exchange. Holdings In common investment funds, unit trusts and open-ended investment companies are at the bid price. The basis of foir value for quoted investments is equlvalent 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 is considered in the financial review and investment policy and performance sections of the Trustees, Annual Report. 15. Stock 2025 2024 Goods for resale 45,940 57,871
PURE INNOVATIONS LIMITED Notes to the Financial Statements Year ended 31 March 2025 16. Debtors 2025 2024 Trade debtors Other debtors and prepayments 623,399 711,331 1,124,350 893,936 1,334,730 2,018,286 17. Current asset investments 2025 2024 Cash on short-term deposits 11,235 19,435 18. Credltors: amounts fallin8 due wlthln one year 2025 2024 Trade credltors Other taxes and social security Other creditors and accruals 150,239 117.975 501,563 139,645 130.837 250,464 769,777 520,946 19. Commitments under operating lea5e5 The company leases it5 main business premises. several café premise5 and other equipment under formal operating leases. The lease agreements terminate between 2021 and 2026. At 31 March 2025 the company had annual commitments under non-cancellable operating leases a5 set out below. 2025 2024 Land & buildings Operating leases which expire: Within l year Within 2 to 5 years 176.2S6 164,583 234,173 277,833 340,839 512,006 20. Derecognition of deflned beneflt pension asset Although the most recent actuarial valuation Df the defined benefit pension scheme indicates thal the scheme is in a net asset position, no asset has been recognised in the financial statements. This is because, in accordance with FRS 102 Section 28.22, the surplus is not considered recoverable by the employer. The terms of the scheme do not allow the employer to obtain a refund of the surplus, nor do they permit a reduction in future contributions. As a result, the surplus does not provide an economic benefit to the employer and is therefore not recogni5ed as an asset. 281Page
PURE INNOVATIONS LIMITED Notes to the Flnanclal Statements Year ended 31 March 2025 21. Retirement benefrt sthemes Deflned contrlbutlon scheme- NEST New employees of the company are only able to join the National Employment Savings Trust {NESTI pension scheme. Under current legislations employee5 not in the GMPF are automatically enrolled into NEST unless they have exercised 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 5% for employee5 and 3% for employers in 2024. Employerfs contributions of £113.750 {2024 - £98,000} have been paid lo this scheme in the year. Defined benefit 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 bv Tameside Metropolitan Borough in accordance with the Local Government Pension Scheme regulations. The a55ets of the Scheme are held separatelyfrom those ofthe company. The contributions to the scheme are charged to the statement of financial activities so as to spread the costs of pensions over the Service live5 of the employees. Variation5 from the regular costs are spread over the average expected remalning working lives of current members ofthe scheme. Members of the scheme may also contribute added years to that scheme or take out an Additional Voluntary Contribution Scheme, each of which is funded by the employee alone. th Members ofthe GMPF accruean indexed Ilnked pension of 1180 of the bestof the last 3 years pensionable service for each year of service. Additional benefits include a lump sum on retirement, continued (reduced} 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 contributlons was on 31 March 2024. Contributions 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 a tiansfer of employees from Stockport MBC. The transfer of pension arrangements was on a fully funded basi5 i.e. there was no transfer of deficit in the Fund attributable to the transferring employee5 (on the on8oing 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 wa5 made using a differing accountin8 convention. The valuation in these flnancial statements assumes a notional re-allocatlon of assets in the Fund from Stockport MBC to Pure Innovations Limited on thls basis. Flnancial Assumptions 2025 %pa 2024 %pa The key financlal assumptions used are: Inflatlonlpension increases Salary Increases Discount rate 2.75% 2.75% 3.55% 3.55% 5.80% 4.85%
PURE INNOVATIONS LIMITED Notes to the Financial Staternents Year ended 31 March 2025 21. Retlrement benefit schemes (continued) Mortallty Assumptlons 2025 Years 2024 Years The period of pension drawdown: Current Future Current Future Male Female 20.2 21.0 20.2 21.1 25.3 24.4 25.3 Key assumptlons Life expectancy Llfe expectancy is based on the CMI 2022 model with a 25% weighting of 2022 data, a 0% weighting of 2021 land 20201 data, standard smoothing lsk71, Inltial adjustment of 0.25% and a long-term rate of Improvement of 1,5% An allowance is included for future retirements to elect to take 50% of the maximum additional tax-free cash up to HMRC limit5. Discount rates In accordance with FRS 102 the discount rate used to place a value on the liabilitie5 should be determined by reference to market yields on high qu3ltty 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 consistent with the currency and term of the obligations. Government bond yield curves are updated and available on a daily basi5 from the Bank of England. It is therefore relatively easy to identify a spot yield on Government bonds at any duration and at any date. Unfortunately, a similarly accessible corporate bond yield curve is not 50 readily available. The discount rate should reflect the 'term' of the benefit obligation. 'Term' has been interpreted as the weighted average duration of the benefit obligation. This is broadly defined as 'the weighted average time until payment of all expected future discounted cashflows, determined based on mèmberships and the financial and demographic assumptions at a particular time, The shorter the duration, the more'mature. the employer. Retail Price5 Inflotion This assumption is typically derived from yields available on fixed interest and index linked Government bonds and should be consistent with the derivation of the discount rate. Pension increases The pension increase assumption is Set in line with the Consumer Prices Index {CPII assumption. As a market in CPI linked bonds does not exist. Therefore, it is necessary to estimate the long-term gap between RPI and CPI in order to derive a CPI assumption for accounting purposes. Salory growth The assumption is generally consistent with the most recent actuarial valuation. An addltional allowance for promotional salary increases is also made.
PURE INNOVATIONS LIMITED Notes to the Flnanclal Statements Yearended 31 March 2025 21. Retlrement benefit schemes ltontlnuedl Scheme Assets Scheme Liabllftles Net Penslon Llabillty Shown In the Stotement of Financial ArtivitK5 Current year Service cost Current service cost (94.000) (94,0001 Total service costs (94,000) 194,000) Net Interest Interest income on plan assets Interest cost on defined benefit obligation 835,000 835,000 (612,000) (612,000) Total net Interest 835,000 1612,000) ZZ3,000 Cashflows Employerfs contributions Members, contributions Benefits pald 78,000 25,000 1378.1)00} 78,000 {25,000} 378,000 Total cashflows 1275,000) 353,000 78,000 Total costs in Statement of Flnancial Activities 560,000 1353.000) 207.000 Opening position at l April 2024 17,369,000 112.749.000) 4,620,000 Derecognition of the defined benefit pension scheme asset {17,369,000) 12,749,000 {4,620,0001 Total remeasurements recognlsed In OCI aosing position at 31 March 2025 31 IPage
PURE INNOVATIONS LIMITED Notes to the Financial Statements Year ended 31 March 2025 21. Retlrement beneflt schemes {continuedl Scheme Assets Scheme Liabilities Net Pension Liability Shown In the Statement of Finonclal Actlvftles Prlor year Service cost Current service cost Past service cost 1109,0001 121,0001 1109.0001 121.0001 Total service costs 1130,000) (130.0001 Net Interest Interest income on plan assets Interest cost on defined benefit obligation 776,OCMJ 776,000 1603,0001 1603,0001 Total net Interest 776,000 1603,0001 173,000 Coshflows Employer's contributions Members, contributions Benefits paid 83,000 28,000 1375,0001 83,000 128,0001 375,000 Total cashflows {264.0001 347,000 83,000 Total costs In Statement of Financial Activities 512,000 1386,000) 126,000 Opening position at l April 2024 16,461,000 112.796,000) 3.665.000 Changes in financial assumptions Changes in demographic assumptions other experience Return on a55ets excluding net interest 772,000 79.000 1418.000} 772.000 79,000 (418,0001 396.000 396,000 Total remeasurements reco8nlsed In OCI 16,857,000 112,363,000) 4,494,0 Closin8 posltlon at 31 March 2024 17,369,000 112,749,000) 4,620,C0
PURE INNOVATIONS LIMITED Notes to the Financial Statements Year ended 31 March 2025 21. Retirement benefit schemes {continuedl 2025 2024 Fair value of plon ossets ot the reporting period end Equity instruments Debt instruments Property Cash 11,810,920 2,605,350 1,389,520 1,563,210 17,369,000 2025 2024 The defined benefit obligations orisefrom plonsfvnded osfollows., Wholly unfunded obligations Wholly or partly funded obligation5 12,749,000 12,749,CNJO 22. Unrestrlcted Funds - current year Derecognltlon of defined beneflt Balan at pension 31 March scheme asset 2025 Balance at l April 2024 Incoming resources Resources expended Exceptlonal item General fund 3.047,719 10,903,201 {10,599,620) 116.000) 3,351,300 Pension fund reserve 4,620,000 223,000 (4,827,000) Total general funds 7,667,719 11,126,201 110,615.6201 14,827,000) 3,351,300 Unrestrlcted Funds- prior year Exceptional items and Resources transfers expended (as restatedl Balance at Actuarial 31 March Gains/ 2024 {lossesl las re5tatedl Balance at l April 2023 Incoming resources General fund 3,134,494 8.494.037 18,289,586) (47,000) 1291,2261 3,047,719 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) 1291,2261 829,000 7,667,719
PURE INNOVATIONS LIMITED Notes to the Financial Staternents Year ended 31 March 2025 23. Restricted funds- current year Balance at I Aprfl 2024 (as restated) Balance at 31 March 2025 Incomin8 Resources Resour¢es expended Free School Meals Bursary Funds 2,603 2,197 7,037 4.239 {3,0721 {2.7281 6,568 3,708 Total unrestricted funds 4,800 11,276 15,800) 10,276 23. Restricted funds- prior year Balance at Balance at 31 March l April Transfers 2024 2023 la5 restated) (as restated) Free School Mea15 Bursary Funds Christmas 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 GoslinE 2,603 2,197 16,924} 19,1671 {53,3251 125,0001 11811 154,8091 18,7891 11,990) 2,603 2,197 6,924 9,167 53,325 25,000 181 54,809 8,789 1,990 27,945 127,945) 18,333) 13,000} 135,416} {33,3061 13.5031 14.1661 8,333 3,000 35,416 33,306 3.503 4,166 Total unrestrlcted funds 275,854 {271,0541 4.800 other gain5111osses) The above losses relate to the transfer of the openlng restricted fund balances as at l April 2023 to the former charity within a charlty Pure Insight 1628. Pure Insight 1628 now operates as a separate charity. 341PaEe
PURE INNOVATIONS LIMITED Notes to the Flnanclal Statements Year ended 31 March 2025 24. Analysis of assets between funds- current year General Designated Fund Funds Totsl Tangible fixed assets Cash at bank and In hand Other net current a55ets 417,437 1,914,733 1.029A05 417,437 1,914,733 1,029A05 3,361,575 3,361,575 Analysi5 of a55ets between funds - prior year General Fund Designated 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
PURE INNOVATIONS LIMITED Notes to the Financial Statements Year ended 31 March 2025 25. Cash used In operatlons 2025 2024 Net movement in funds 516.057 330.451 Adjustmentsfor.. Depreciation Interest income Transfer of Pure Insight 1628 funds Net pension costs in SOFA {Profitl/Loss on fixed asset investments {Profit}/Loss on dlsposal of assets 218,708 138,1361 240,734 149,580} 1562,2801 1126,000} 19.0491 19,280 1207,0001 72 33,488 Movement5 in working capitol.. {Increase)/decrease in stock {Increase}/decrease in debtors Increase/{decrea5el in creditors 11,931 691,756 248,831 14.2381 1793,2651 152,7601 Net ¢ash generated In operations 1,475,707 11,006,707) 26. Net debt reconciliation - current year l April 2024 31 March 2025 Cash flows The Group Cash 825,686 1.089,047 1,914.733 825,686 1,089.047 1,914,733 Net debt reconciliation- prlor year l April 2023 31 March 2024 Cash flow5 The Group Cash 1,794,428 1968,742) 825.686 1,794,428 1968,742) 825,686 361Page