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 (con￿nUe￿I 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 Servi￿5. 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