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← Mercy Beyond Limited

2024-12-31-accounts

UNITED KINGDOM 2024 ANNUAL REPORT

CONTENTS

OVERVIEW

CELEBRATING OUR IMPACT

REVIEW

AUDITOR’S REPORT & FINANCIAL STATEMENTS

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WHO WE ARE Mercy UK is a Christian Mental Health charity with a proven track record of helping people navigate the unique dynamics between faith and mental health. We provide therapeutic services, practical tools and church resources that are both theologically sound and psychologically proven.

ISAIAH 61

Our foundations are built on Isaiah 61:

He has sent me to bind up the brokenhearted, to proclaim freedom for the captives and release from darkness for the prisoners, to proclaim the year of the Lord’s favour and the day of vengeance of our God, to comfort all who mourn, and provide for those who grieve in Zion.

We know how to help people peel back the layers of faith, behaviours, history and hurt so that root issues can be addressed, and people can develop their relationship with God, self and others.

We know how to help people live free and stay free.

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2024

NEW

Our Commitment and Mandate to the Church

At Mercy UK, we recognise that many within the Church today are carrying pain that has not yet been fully acknowledged or addressed.

Through our conversations with individuals across a wide demographic, a common thread has emerged—many are navigating a deep sense of disconnection, hurt, and uncertainty in their spiritual journey.

These challenges are not isolated to individuals, but point to a broader longing for wholeness within the body of Christ.

THE We recognise that this pain can stem from many places; grief, disappointment, strained CHALLENGES relationships, personal struggles or abuse. For some, it may include the effects of unhealthy or unhelpful dynamics within church settings. For others, it may be shaped by past trauma, including Adverse Childhood Experiences (ACEs), or the impact of racial or cultural exclusion.

Whatever the source, these experiences can leave individuals questioning their identity, their purpose, and even their understanding of God.

It’s time to LIVE FREE & STAY FREE

We believe healing begins when we create safe spaces to process these experiences honestly, with grace and compassion.

At Mercy UK, we are committed to walking alongside those who are navigating these challenges, offering resources and support to help people rediscover their identity in Christ and find freedom and restoration.

Through intentional care, community, and Christ-centred support, we believe healing is possible—for individuals, for leaders, and for the Church as a whole.

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Our Commitment to...

INDIVIDUALS

Through the Keys to Freedom workbook and The Freedom Journey programme, we provide practical tools for individuals to explore the root causes of their struggles and take steps toward healing. These programmes are designed not only to support personal breakthrough, but to encourage deeper intimacy with God, restored relationships, and renewed purpose.

LEADERS

Importantly, this need for healing is not limited to church members. Many pastors and leaders are also navigating their own internal battles—feelings of fatigue, discouragement, overwhelm, or a loss of clarity around their calling. As fellow believers, we recognise that leaders, too, need space to heal and be restored. It is a reminder that we are all human— each of us on a journey, each in need of grace.

THE CHURCH We believe Christ is returning for a healed, whole, and unified Bride. This means that each AS A WHOLE of us has a role to play in the restoration of the Church—not by placing blame, but by taking personal responsibility for our own growth and healing. When we do this, we are better positioned to bring hope and restoration to others.

FIND OUT MORE AND JOIN IN TODAY:

AIMS & OBJECTIVES

HOW WE HELP

We help people peel back the layers of faith, behaviours, history and hurt so that root issues can be addressed, and people can develop their relationship with God, self and others.

We know how to help people live free and stay free. During 2024 our services included:

The Freedom Journey. A 16-week course to help Christians live free and stay free with one-to-one mentoring, counselling and access to other specialist support

Keys to Freedom. An 8-week discipleship course for group or individual study, designed to help Christians live free and stay free.

Training, resources and speaking engagements. We use our proven track record to educate, equip and empower individuals and churches.

OUR FORMER The former charitable objects of Mercy UK as set out in our Memorandum and Articles of AIMS AND Association are: OBJECTIVES

To promote the benefit of the public, in particular women and girls, by

(a) providing relief from and support to women and girls affected by poverty, pregnancy, sickness, hardship and distress

(b) providing charitable relief (including the provision of housing or other accommodation) to women and girls in need of care by reason of their social, emotional and economic circumstances

(c) To advance the Christian religion in accordance with the statement of faith (attached as a schedule to the memorandum of association) through the gospel of the Lord Jesus Christ and the teachings of the word of God by presenting a values-based curriculum or teaching programme that will better enable persons to cope with the business of life.

(d) And such other charitable purposes as the directors of the company may from time to time determine.

UPDATED AIMS Given the changes to our services post-Covid, including the closure of our residential services and pivoting to deliver online support to a broader demographic, a review of our charitable objects was being finalised in 2024 to more accurately describe the activities now delivered by Mercy UK.

(i) To prevent poverty and provide relief of poverty to individuals affected by hardship, disadvantage or distress by reason of social, emotional, psychological or economic circumstances and who wish to access Christian mental-health and well-being support.

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(ii) To advance the Christian faith by disseminating the gospel and Christian discipleship through digital and print materials, campaigns, and other means of communication, to foster a deeper understanding and connection with Jesus Christ.

(iii) To promote the health and well-being of individuals and the saving of lives through the prevention and relief of distress and suffering through the provision of biblical teaching, discipleship curricula, and holistic Christian-based mental health activities and programmes.

(iv) Such other charitable purposes as shall further the attainment of the above objects of the company or any of them.

These proposed objects are consistent with the descriptions of purposes under the Charities Act 2011 and public benefit requirements and are aligned with Mercy UK’s mission and vision for the future. Final approval from the Charity Commission is pending.

A YEAR OF FREEDOM Celebrating our impact

66 Without you I wouldn’t be here at this place to go forward and do what God has called for me to do. I said I can’t put into words how grateful I am.

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THE FREEDOM JOURNEY

The Freedom Journey is our 16-week holistic programme for men and women of all

ages. Over approximately 10-hours of therapeutic engagement every week, participants work with a Freedom Journey facilitator to deepen their healing through access to assigned teaching, discipleship mentoring, weekly counselling sessions with a registered counsellor and access to fitness, nutritional or occupational therapy support, where needed.

This service was launched in 2023 and through 2024 this service has gone from

stength to strength! Through 2024, at any one time we were providing direct support 118 to approximately 118 people. This would range from those receiving support whilst in people currently the application process, those waiting to start, as well those those actively engaged on receiving the programme. We also offer life-time access to aftercare to anyone has completed the direct support programme.

With the Freedom Journey we have two primary goals:

1) See an increase in the amount of people Mercy UK could directly support

2) See demonstrable improvements to participants wellbeing.

GOAL 1:

See an increasingly diverse range of participants

One of our primary goals was to see an increase in the amount and types of people that Mercy UK could directly support. Through 2024 received applications ranging from a 36-year-old father to a mother of four who is in pastoral leadership, to a 70-year-old who has been battling with the impact of trauma her whole life.

Support from day one

“I feel like my Individuals will receive direct one-to-one support from the moment they apply. The full healing has application and pre-programme process can take anything from 60-90 days. During this already time we assess the needs of an individual, provide initial support and advice and work on begun and building up a local support network. They’ll also get access to a suite of digital resources so I've not even that they can start their therapeutic and faith-based journey from the outset. started the programme We have even had four applicants decide not to proceed with the Freedom Journey because yet!” they had already received the breakthroughs they needed!

We have even had four applicants decide not to proceed with the Freedom Journey because they had already received the breakthroughs they needed!

“I honestly don’t know where I would be without the Freedom Journey. I could never have afforded this level of comprehensive help. Before I started I was emotionally overloaded. I had never learnt to process any of my trauma… I had nowhere else to turn. Andrea, 41, mother to two young boys, working in Christian Ministry.

GOAL 2:

100% satisfaction rate after each module

See demonstrable improvements to participants’ wellbeing

We are so pleased with the results that we saw through 2024. At the end of each module participants complete feedback and Core-10 forms (an assessment tool to measure psychological distress which is also used by the NHS). We have seen people with Core–10 scores over 20 (indicating a moderate-to-severe levels of distress) ending the programme with scores below 10, which indicate clinically insignificant levels – in other words, the same scores as someone with good mental health who needs no intervention or support!

We have always known that Jesus is the answer, but seeing it so clearly demonstrated really does motivate us to keep reaching more people!

100%

agree that their improved wellbeing is due to the Freedom Journey

“For nine years I couldn’t work for more than two weeks without ending up in hospital”

“My life was disjointed, dysregulated, dysfunctional.”

↓ ↓

“Life has changed. Because that baggage isn’t there, I can go for a run, I can go to church, I can worship, I can work.”

“I now work as an Advisor for Citizens Advice. A job I have had for over 8 months!”

“I used to compare myself to everyone and anyone, because I felt I was never enough”

↓ “When I’m triggered by my past, or something comes back from my past, I don’t shy away and run away from it, but now I have the materials that I need to be able to address it”

↓

“Now I accept I am the way I am, because that’s the way God made me”

“I didn’t have a great model of a father so there were things in terms of trust & intimacy that I couldn’t grasp”

↓

“It’s changed my relationships, even with my husband, my children, my friends!”

“I didn’t want to look in the mirror. Not even at the hairdressers”

↓

“Now I’m on a mission to put on weight to the amazement of all around me. I can be the real me, free to look in the mirror”

KEYS TO FREEDOM

Keys to Freedom is our 8-week discipleship workbook, equipping people to go beyond presenting challenges and find healing at the root causes.

FOR INDIVIDUALS

The Keys to Freedom Workbook has continued to be a cornerstone of our offerings. With almost 1,400 copies sold in 2024 through our website alone - that’s nearly 4 workbooks every day - the product’s success reflects not only the demand for this vital resource but also the powerful impact it has on those seeking to embark on their journey of transformation.

More than half of visitors to the product page take the step to purchase, demonstrating the strong connection between the resource and those in need.

FOR As a descipleship resource, Keys to Freedom is incredibly versatile. Churches are using CHURCHES it as part of leadership training, post-Alpha groups, youth groups, marriage counselling, one-to-one mentoring or just general support groups for anyone that wants to go through Keys to Freedom.

NEW KEYS TO FREEDOM ONLINE HUB

In 2024 we launched our online Keys to Freedom Hub, making it easier than ever for churches to start using Keys to Freedom.

This new hub provides free training, exclusive access to the Facilitator Guide, huge savings on bulk orders of Keys to Freedom and a comprehensive FAQ section.

We love working alongside Mercy UK and find Keys to Freedom to be such a blessing to our church and for all who go through it. Bless you guys and thank you for all you’re doing. >) Jy

Kings Church, Aberdeen

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RESOURCES & CAMPAIGNS

CAMPAIGNS

The Big Christian Mental Health Campaign The impact of your investment into Mercy UK has extended far beyond the Freedom Journey.

As we launched and refined the Freedom Journey through 2023, we were simultaneously exploring how we can make the tools and resources developed for the Freedom Journey available to all Christians and to those that help others.

The culmination of this was the launch of the Big Christian Mental Health Campaign at the start of 2024, which wouldn’t have been possible without your support. We are so expectant of how God is going to continue using this campaign to broaden our reach, and enable us to play a vital role in removing stigma, breaking taboos and normalising Christcentred mental health support.

This campaign is already resonating. Since the launch, we have received media requests from USB Radio, Premier Magazine and Christian Podcasts. We have run a specific Men’s Christian Mental Health campaign which saw us conduct over 18 hour long interviews in a 24-hour period! This helped raise awareness and funds and was featured live on UCB Radio. Social media engagement has increased by 150% as people share their own experiences of the dynamics between faith and mental health. Our Instagram following has increased by 25%. And all of this has helped see a 50% increase in the amount of people exploring the Freedom Journey!

RESOURCES

In 2024, as part of the Big Christian Mental Health Campaign, we redesigned our newsletters to be more informative and educational.

In every issue we help you navigate the tension between faith & mental health by looking at a tension point , a talking point and a truth to ponder .

Eg . Faith & Anger • Faith & Disappointment • Faith & Burnout

PLUS you will receive:

✓ Exclusive updates

✓ Free Resources

✓ Discounts

✓ Ways we can support you and your church

Scan to sign up!

Your mail landed this evening and you will never know just how much I needed it. Thank you for reminding me that God is faithful, despite the grief and pain we go through in life.

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THANKING OUR SUPPORTERS

We remain immensely grateful to all our supporters not just for their giving, but for their prayers and continued cheerleading.

To show the impact of your support, we decided to hand the microphone to our participants. Please watch this short 3-min video that highlights the tangible impact of your generosity.

www.mercyuk.org/thankyou

GG I'd never be able to access something like this and go on the journey that I've been on and become the person I am now without that support and without your generosity and your kindness.”

66 I can’t thank the supporters enough. Yesterday a good friend of mine who’s been a friend for many years and seen me at my worst she messaged me and said “it’s beautiful to see all those years of You Been Loved and prayed for suddenly being fulfilled”. I can’t really improve on that.”

GC Everyone who has given to this ministry: God bless you! Without you I wouldn’t be here at this place to be able to go forward and do what God has called for me to do so I’m really thankful and as I said I can’t put into words how grateful I am.”

GG

To anyone that supports Mercy UK just want to say thank you for supporting me on my journey through a difficult time in my life. By helping me on my journey I’ve now been able to go on to help other people – children and young people especially.”

66 You have changed my life radically and without your support without your finances it just wouldn’t happen so thank you it means the world it means the world to me.”

GG Thank you for your support and thank you for any of you that are thinking about giving support and will support in the future, you’re going to help change people’s lives.”

66 For anyone supporting Mercy UK: I’m just so thankful you’ve made a real difference to a real person with real issues. I had nowhere else to turn I couldn’t have afforded this level of comprehensive help. I don’t know where I’d be without the Freedom Journey so if you’re wondering how your pennies are spent, they are very well spent and I am massively thankful.”

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FINANCIAL REVIEW

In keeping with our Christian values, Mercy’s financial principles are as follows:

• We tithe 10% of unrestricted donations to helping former participants as well as Christian minitries, charities or organisations that align with our vision and values.

• No money is accepted from any governmental body or source that would compromise our Christ-centred approach to mental health and wellbeing and the services we provide.

The year 2024 has presented ongoing financial challenges for the charity. As we do not receive any government funding, a significant portion of our income is derived from voluntary donations, with the remainder generated through fundraising initiatives, the sale of resources, and training days. The combined performance of regular giving, direct fundraising, training, events and resources yielded £1,041k. This was 90% of the £1,156k forecasted amount in the original plan for the year.

In May 2024, Mercy UK also established a wholly owned subsidiary trading company, Cornerstone Workspaces Ltd, to help utilise and maximise the potential of our main office building in Oxenhope. Cornerstone Workspaces provides affordable and flexible office spaces to local small businesses, entrepreneurs, and community groups. As a non-profit venture, the trading company operates with the dual purpose of supporting the local economy and generating unrestricted income for the charity. All surpluses generated by the company are transferred back to Mercy UK to support our charitable activities (included under ‘other trading activities’ in the figures below)

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INCOME
£596k
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EXPENDITURE
£867k
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2024 Total Income: £596k 2023: £1.074m

2024 Total Expenditure: £867k 2023: £1.2m

Income and endowments from:

Donation and legacies = £482k (81%) Charitable activities = £69k (12%) Other trading activities = £45k (8%)

Charitable activities = £840k (97%) Raising funds = £27k (3%)

97%

of our income was allocated against our charitable activities. That’s 97p in every £1!

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RESERVES The Trustees are committed to working within a Going Concern Framework, adhering to POLICY guidance issued by the Charity Commission to ensure effective management of funds and reserves. Our reserves policy reflects our commitment to achieving financial stability while maintaining flexibility to adapt to changing circumstances.

Mercy UK aims to hold unrestricted funds not committed or invested in tangible assets (“free reserves”) of £50,000. This represents approximately 1 to 1.5 months of operational expenditure. This target is intended to provide a basic safety net for one to one and a half months of essential expenses, offering immediate financial stability while being realistic given our current financial situation. It allows Mercy UK to rebuild reserves gradually without placing undue pressure on the charity.

On the 31st December 2024, our total reserves stood at £973k (2023: £1,244k), the vast majority of which are restricted funds represented by fixed assets for use by the charity and which cannot be turned into cash.

INVESTMENTS Under the Memorandum and Articles of Association, the charity has the power to make any investment which the trustees see fit. The trustees have considered the most appropriate policy for investing funds so as to maximise interest on funds available.

TRUSTEES’ The trustees have reviewed the cash position of the charity and cash forecasts at the DECLARATION date of signing the financial statements and are satisfied that the charity will be able OF GOING to meet its financial commitments but acknowledge the challenges ahead given the CONCERN current economic landscape and pressures facing charities.

The trustees believe the charity is well placed to manage its financial risks successfully despite the current economic climate. Due consideration has been given to key financial risks and, in line with Charity Commission guidance, a financial risk assessment continues to be reviewed and mitigations identified.

The trustees have a reasonable expectation that the measures in place are adequate to continue in operational existence for the foreseeable future. As a result, the Trustees continue to adopt the going concern basis in preparing the financial statements.

RISK Trustees continue to utilise the STEEPLE analysis tool to assess the risks of social, MANAGEMENT technological, economic, ethical, political, legal and environmental change drivers.

In response to the cost-of-living increases and because we continue to remain in faith for our finances, the trustees continue to use a Going Concern Framework to track and mitigate financial risks and formalise the board’s response at various thresholds of the charity’s financial position.

For Mercy UK, a structured and strategic approach to growth is essential. In 2024, work began on implementing a Balanced Scorecard KPI framework for assessing the agility and resilience of Mercy UK and providing insight into Mercy’s readiness for expansion or need for contraction

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OUR ETHICAL PRACTICE

EQUALITY, DIVERSITY & INCLUSION

At Mercy UK, we are committed to creating an environment that values and respects the diverse backgrounds of our employees and service users. We believe that equality, diversity, and inclusion (EDI) are integral to our mission, and we strive to embed these principles in every aspect of our work by:

Given the nature and context of our work, which is rooted in Christian faith and values, roles within our organisation require individuals to be active members of the Christian faith. We recognise that being an active member of the Christian faith is a genuine occupational requirement for positions within the charity. In applying this exception, we are committed to ensuring that it is done lawfully and proportionately, and in a way that does not constitute direct or indirect discrimination.

EMPLOYEE EXPERIENCE

100% agree

100% agree

90% agree

GO TEAM MERCY!

We are pleased to share the results of our staff survey carried out in April 2024, which reflect the deep passion and commitment of our team to the mission and values of Mercy UK. The feedback highlights the strong alignment between our core values and the experiences of those who work with us.

“Mercy UK is flexible with respect to commitments outside of the workplace such as family, medical appointments or study leave.” : An inspiring 100% of staff agreed that Mercy UK is flexible with respect to commitments outside of the workplace, with 82% strongly agreeing and 18% agreeing. This demonstrates our commitment to the wellbeing of our team, and the positive impact of this value is clear.

“Mercy UK embodies its core value of Passion for People” : A strong 100% of staff agreed that Mercy UK embodies its core value of Passion for People, with 63.64% strongly agreeing and 36.36% agreeing. This reinforces our ongoing commitment to not only supporting the individuals who benefit from our services but also nurturing a caring and supportive environment for our staff.

“Mercy UK embodies its core value of Passion for Excellence” : An encouraging 90.91% of staff agreed that we consistently demonstrate a commitment to excellence, with 63.64% strongly agreeing and 27.27% agreeing. While there is always room for growth, this shows that our team is deeply invested in delivering high-quality services and ensuring that we meet the highest standards in all that we do.

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SAFEGUARDING At Mercy UK, safeguarding is a top priority, and our safeguarding policy is deeply embedded in our practices. The policy undergoes an annual review by our trustees to ensure its continued relevance and effectiveness. Additionally, our team receives expert support and guidance from an organisation specialising in safeguarding within the faith sector. We remain committed to seeking consultation on any critical safeguarding concerns to ensure the highest standards of care.

If you have any safeguarding queries, please contact us at safeguarding@mercyuk.org.

ETHICAL Mercy UK’s ethical practice is firmly rooted in our core values. When faced with ethical PRACTICE dilemmas, we are committed to applying Christian values to minimise harm and promote the wellbeing and empowerment of others. Our guiding principles are outlined in our Ethical Framework, which, along with our core values, serves as the foundation for all decision-making.

Our core values are:

For more information, our Statement of Ethical Practice is available on our website.

FUNDS HELD Funds Held as Custodian Trustee on Behalf of Others

The Trustees confirm that no funds are being held as custodian trustees on behalf of others.

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PLANS FOR FUTURE PERIODS FAITH-BASED EMPLOYEE erat vi WELLBEING PROGRAMME

EMPOWERING CHRISTIAN WORKPLACES FOR A THRIVING WORKFORCE

In the upcoming period, Mercy UK will introduce a transformative, faith-led Employee Well-Being Programme aimed at empowering Christian workplaces and fostering resilient, spiritually healthy, and high-performing teams. This initiative will provide tailored support for Christian businesses, charities, and churches by addressing the mental health challenges that significantly impact workplace performance and absenteeism. By integrating pastoral care, discipleship, and trauma-informed well-being strategies, the programme will offer a practical, faith-driven solution to support Christian organisations.

INCLUDING:

Workplace Well-Being Coaches:

Providing faith-based pastoral care, confidential listening services, prayer, and aftercare support. These coaches will be fully trained in safeguarding and counselling skills to ensure a spiritually and psychologically safe environment.

Keys to Freedom (KTF) Group Sessions:

An interactive 8-week discipleship programme designed to equip employees with tools for emotional resilience, personal growth, and spiritual development.

Thematic Workshops:

One-hour sessions addressing various topics such as personal leadership, change management, resilience, stress management, and discipleship, tailored to the specific needs of the organisation.

1:1 Faith-Based Support:

For employees seeking individualised guidance, Mercy UK will offer one-on-one KTF mentoring and the Freedom Journey, a 16-week trauma-informed programme that includes access to specialist practitioners and aftercare support.

PRICING: Flexible pricing: Additionally, flexible pricing options will be available, allowing organisations to choose from stand-alone services or commit to a 12-month package for sustained impact and cost savings.

AIMS:

The programme aims to reduce workplace absenteeism, stress, and turnover, while enhancing employee engagement, retention, and personal development. Through this initiative, Mercy UK will support Christian organisations in nurturing healthier, more resilient teams, ultimately fostering a positive, faith-driven workplace culture.

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STATEMENT OF TRUSTEE RESPONSIBILITIES

The trustees are required by company law to prepare financial statements for each financial year which give a true and fair view of the financial activities of the charity and of its financial position at the end of that year. In preparing those financial statements the trustees are required to:

In preparing these accounts, the trustees are required to:

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

Statement as to Disclosure of Information to Auditors

So far as the trustees are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company’s auditor is unaware, and each trustee has taken all the steps that ought to have been taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the company’s auditor is aware of that information.

Auditors

The auditors, Torevell Dent (Audit) LLP, were re-appointed as the charitable company’s auditors during this year and have expressed their willingness to continue in that capacity.

This report was approved by the Board of Trustees on 10th September 2024 and signed on its behalf by:

Fiona Taylor Chair of Trustees

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OUR STRUCTURE, GOVERNANCE AND MANAGEMENT

GOVERNING Mercy Ministries UK (Mercy UK) is a charitable company limited by guarantee, DOCUMENT incorporated on 23rd February 2005 and registered as a charity on 20th September 2005. The company is governed by a Memorandum and Articles of Association which determines the objects and powers of the charitable company. In the event of the organisation being wound up, members of the charitable company guarantee to contribute an amount not exceeding £1. The total number of such guarantees at the end of 2024 was x.

APPOINTMENT The Board of Trustees at Mercy UK, who are also directors of the charity for the purpose of the OF TRUSTEES Companies Act, represent a group of individuals with a wide range of experience and skills.

All trustees give of their time voluntarily and receive no benefits from the charity. Any expenses that are claimed are shown in the notes to the accounts. Details of all the trustees can be found in the administrative information part of this document, as well as on our website.

Trustees are recruited on the basis of their experience for the role and the skills they might contribute in line with the objectives of the charity outlined in its Memorandum and Articles of Association. A skills matrix is used to identify skills gaps and inform recruitment needs.

TRUSTEE The charity has a trustee induction pack which explains the duties of a trustee and INDUCTION provides facts along with additional sources of information about the charity. New AND TRAINING trustees are invited to a briefing session with the chairman to familiarise themselves with the charity.

STRUCTURE The Board of Trustees at the end of 2024, consisted of six trustees, who are also members. AND DECISION The Trustees meet quarterly to review strategic, operational and financial performance MAKING together with the Senior Leadership Team.

The day-to-day running of Mercy UK has been delegated to the Senior Leadership team, consisting of the Director of People & Support and Director of Development who report to the Chief Operating Officer and operate under the visionary direction of the Chief Executive. The Chief Executive and Chief Operating Officer report directly to the Board of Trustees. All members of the Senior Leadership Team are present at Trustee meetings.

Key Performance Indicators are used to measure and review performance against the strategic plan with regular meetings ensuring that corrective action is taken where needed. Monthly management accounts are also used to monitor financial performance.

Mercy UK is affiliated to Mercy Multiplied International (MMI). The President and Founder of MMI is Nancy Alcorn. In addition to reporting to the Trustees, the Chief Executive also reports on a monthly basis to MMI, as a member of the MMI board of trustees.

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REFERENCE AND ADMINISTRATIVE DETAIL

Company Information for the year ended 31st December 2024

COMPANY NAME Mercy Ministries UK DIRECTORS Chairman: Fiona Taylor (appointed 19/04/2023) Helen Edwards (appointed 21/03/2018) Rob Waller (appointed 24/10/2018) Warrick McCullough (appointed 17/06/2019) Jonathan Clark (appointed 03/10/2023) Lavanya Dua (appointed 02/02/2024) SECRETARY Debbie Harvie (appointed 29/01/20) CHIEF EXECUTIVE Arianna Walker REGISTERED OFFICE Cragg Royd Lowertown Oxenhope BD22 9JE BANK Santander Bank Bridle Road, Bootle, Merseyside, GIR OAA AUDITOR Torevell Dent (Audit) LLP Chartered Certified Accountants Centre of Excellence, Hope Park, Trevor Foster Way, Bradford, BD5 8HH COMPANY NUMBER 5373315 CHARITY NUMBER 1111377 OTHER NAMES USED Mercy UK

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AUDITOR’S REPORT

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF MERCY MINISTRIES UK FOR THE YEAR ENDED 31 DECEMBER 2024

OPINION

We have audited the financial statements of Mercy Ministries UK for the year ended 31st December 2024 as set out on pages 12 to 18. The reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charitable company’ members as a body, in accordance with Section 144 of the Charities Act 2011 made under Section 154 of the Act. 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’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

In our opinion the financial statements:

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AUDITORS REPORT

RESPONSIBILITIES As explained more fully in the Trustees’ Responsibilities Statement set out on page 8, OF TRUSTEES the trustees (who are also the directors of the charitable company for the purpose of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or has no realistic alternative to do so.

The trustees have elected for the financial statements to be audited in accordance with the Charities Act 2011 rather than the Companies Act 2006. Accordingly, we have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with regulations made under Section 154 of that Act.

BASIS OF We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs OPINION (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

In auditing the financial statements, we have concluded that the trustee’s use of the CONCLUSIONS going concern basis of accounting in the preparation of the financial statements is RELATING TO appropriate. Based on the work we have performed, we have not identified any material GOING CONCERN uncertainties relating to events or conditions that, individually or collectively may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

OTHER The trustees are responsible for the other information. The other information comprises INFORMATION the information included in the annual report, other than the financial statements and our audit report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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2024 ANNUAL REPORT

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement in 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.

AUDITOR’S Our objectives are to obtain reasonable assurance about whether the financial RESPONSIBILITIES statements as a whole are free from material misstatements, whether due to fraud or error, and to issue an auditor’s 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 ISA’s (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities including fraud is detailed below.

The risk of material misstatement in respect of irregularities, including fraud has been assessed as low. We gained an understanding of the legal and regulatory framework applicable to the charitable company and the sector in which it operates and considered the risk of acts by the charitable company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Charities Act 2011, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with the management team. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities,

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2024 ANNUAL REPORT

including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluation whether there was evidence of bias by the trustees that represented a risk of material misstatement due to fraud.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained during the audit, we have not identified material misstatements in the trustee’s report.

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

SIGNED:

Samantha Sutcliffe F.C.C.A. (Senior Statutory Auditor)

For and on behalf of Torevell Dent (Audit) LLP Chartered Certified Accountants Statutory Auditor 1-3 St Ann’s Place Pellon Lane Halifax HX1 5RB

Date: 1 September 2025

Torevell Dent (Audit) LLP is eligible to act as auditor in terms of section 121 of the Companies Act 2006.

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2024 ANNUAL REPORT

MERCY MINISTRIES UK

STATEMENT OF FINANCIAL ACTIVITIES

Summary Income and Expenditure Account for the year ended 31st December 2024

Income and endowments from:
Donations and legacies
Charitable activities
Other trading activities
Total income
Expenditure on:
Raising funds
Charitable activities
Other
Total expenditure
Net income/(expenditure)
Transfer between funds
Total funds brought forward
Total funds carried forward		 Notes
4
5		 Unrestricted
Funds
351,408
69,439
44,657		 Restricted
2024
2023
Funds
Total
Total
130,395
481,803
977,062
-
69,439
63,821
-
44,657
32,688		 2023
Total
465,504 130,395
595,899
1,073,571
26,520
709,809		 -
26,520
50,914
130,395
840,204
1,161,935
736,329 130,395
866,724
1,212,849
(270,825)
-
(549,081)		 -
(270,825)
(139,278)
-
-
-
1,792,964
1,243,883
1,383,161
(819,906) 1,792,964
973,058
1,243,883

The statement of financial activities includes all gains and losses in the year. All incoming sources and resources expended derived from continuing activities.

The notes which start on pages 31 form part of these financial statements

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2024 ANNUAL REPORT

MERCY MINISTRIES UK

BALANCE SHEET

for the year ended 31st December 2024

Notes 2024 2023
Fixed assets 6 1,199,431 1,280,507
Current Assets
Stock 3,816 5,226
Debtors & prepayments 7 12,269 11,940
Cash at bank and in hand 39,525 27,188
55,610 44,354
Creditors: amounts due within
one year 8 (83,983) (80,978)
Net Current Assets (28,373) (36,624)
Creditors: amounts due after
more than one year (198,000) -
Total net assets 973,058 1,243,883
Reserves
Unrestricted funds 10 (819,906) (549,081)
Restricted funds 10 1,792,964 1,792,964
Total funds 973,058 1,243,883

The financial statements have been prepared in accordance with the special provisions of part 15 of the Companies Act 2006 relating to small companies and with the Charities SORP (FRS102) (effective January 2015)

Approved by the board of directors and trustees on 5th September and signed on its behalf by:

Fiona Taylor Chair of Trustees

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2024 ANNUAL REPORT

NOTES TO THE FINANCIAL STATEMENTS

ACCOUNTING Basis of preparation of accounts POLICIES

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) effective 1 January 2015 (Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Preparation of the accounts on a going concern basis

The assessment of the charity is a going concern.

The trustees have reviewed the cash position of the charity and cash forecasts at the date of signing the financial statements and are satisfied that the charity will be able to meet its financial commitments but acknowledge the challenges ahead given the current economic landscape and pressures facing charities.

The trustees believe the charity is well placed to manage its financial risks successfully despite the current economic climate. Due consideration has been given to key financial risks and, in line with Charity Commission guidance, a financial risk assessment continues to be reviewed and mitigations identified.

The trustees have a reasonable expectation that the measures in place are adequate to continue in operational existence for the foreseeable future. As a result, the trustees continue to adopt the going concern basis in preparing the financial statements.

Incoming resources

Income is recognised and included in the accounts when all the following criteria are met:

For legacies, entitlement is taken as the earlier of:

Donated services and facilities

Donated services and facilities are recognised as income when the Charity has control over the item, and conditions associated with the donated item have been met, the

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2024 ANNUAL REPORT

receipt of economic benefit from the use by the Charity of the item is probable and that economic benefit can be measured reliably. On receipt, donated services and facilities are recognised based on the value of the gift to the Charity which is the amount the Charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market: a corresponding amount is then recognised in expenditure in the period of receipt.

Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the Charity. Designated funds are unrestricted funds of the Charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the Charity’s work.

Expenditure and irrecoverable VAT

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 headings:

Expenditure which is directly attributable to specific activities has been included in these cost categories. Where costs are attributable to more than one activity, they have been apportioned across the cost categories on a basis consistent with the use of these resources.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Tangible fixed assets

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost over their expected useful economic lives as follows:

Computer equipment 33% on a reducing balance basis Motor vehicles 25% on a reducing balance basis Furniture and equipment 25% on a reducing balance basis Freehold property 4% on a straight line basis

Stock

Stock is valued at the lower of cost and net realisable value. Donated items of stock are recognised on receipt at fair value which is the amount the Charity would have been willing to pay for the items on the open market.

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2024 ANNUAL REPORT

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to the income and expenditure account over the relevant period. The capital element of the future payments is treated as a liability.

STAFF SALARIES AND NATIONAL INSURANCE

2024 2023
Salaries and wages £518,715 £724,935
Social security costs £43,497 £61,302
£ 562,212 £786,237

The average weekly number of staff employed, calculated as fulltime equivalents during the year was 21 (2023:30). No remuneration or expenses were paid to any of the trustees during the year. No employee received remuneration of £60,000 per annum or more.

NET INCOME

Net income is stated afer charging: 2024 2023
Depreciation £81,074 £83,188
Audit fee £3,600 £4,080
Income from donations and legacies 2024 2023
Regular giving £148,291 £179,103
Restricted fund donations £130,395 £590,267
Donations £92,770 £98,490
Grants received from Trusts £72,000 £58,500
Gif Aid received £38,347 £50,702
£481,803 £977,062

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2024 ANNUAL REPORT

STATEMENT OF FINANCIAL ACTIVITIES:

NOTES ON THE NUMBERS (SEE PAGE 26)

5 Expenditure on Charitable Activities
International Affiliation fees
Staff costs and National Insurance
Recruiting and training
Premises costs
Programme activity costs
Administration costs
Motor and travel costs
Tithes
Depreciation and loss on sale of assets
Finance costs
Audit fee		 2024
-
562,212
31,793
34,802
30,344
58,129
6,955
31,067
81,074
228
3,600
840,204		 2023
10,997
786,237
63,207
61,677
46,058
57,880
14,014
34,416
83,188
181
4,080		 2023
1,161,935

Tithes

It is a founding principle of Mercy UK to give away at least 10% of all unrestricted income to organisations and individuals that are involved in or do work that is in alignment with our vision. Donations made this year include gifts to former resident and individuals on mission trips, churches and other ministry organisations.

6 Tangible Fixed Assets

Tangible Fixed Assets
Cost
At 1stJanuary 2024
Additions
Disposals at cost
Current
Depreciation
At 1stJanuary 2024
Charge for period
Elim on disposal
At 31st December 2024
Net Book Value
At 31 December 2024
At 31 December 2023		 Freehold
Computer
Furniture &
Property
Equipment
Equipment
£
£
£
1,903,447
92,413
51,029
-
-
-
-
-
-
1,903,447
92,413
51,029
639,876
83,975
42,531
76,138
2,812
2,124
-
-
-
716,014
86,787
44,655
1,187,433
5,626
6,374
1,263,571
8,438
8,498		 Totals
£
2,046,889
-
-
2,046,889
766,382
81,074
-
847,456
1,199,433
1,280,507

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2024 ANNUAL REPORT

STATEMENT OF FINANCIAL ACTIVITIES:

NOTES ON THE NUMBERS (SEE PAGE 23)

7
8
9
10		 Debtors: Amounts falling due within one year
Prepayments
Debtors
Creditors: Amounts falling due within one year
Trade creditors
Social Security
Accruals
Operating Lease Rentals
Annual operating lease rentals on equipment
Analysis of net assets between funds
Tangible fixed assets
Net current (liabilities) / assets
Transfer between funds
Net assets 31st December 2024		 Unrestricted
Funds
£
-
(819,906)
-		 2024
10,754
1,515
12,269
2024
20,875
57,398
5,710
83,983
2024
3,740
Restricted
Funds
£
1,199,431
593,533
-
1,792,964		 2023
10,175
1,765		 2023
11,940
2023
14,725
59,754
6,499		 2023
80,978
2023
3,208		 2023
Totals
£
1,199,431
(226,373)
-
(819,906) 973,058

11 APB Ethical Standards

In common with many other charities of our size and nature we use our auditors to prepare accounts and submit returns to the tax authorities. Payment for non-audit services totalled £875 (2023: £875).

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2024 ANNUAL REPORT

TRADING AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER 2024

Turnover
Regular giving
Donations
Merchandise sales
Other income
Gift Aid
Fundraising
Cost of sales
Fundraising events and
merchandise costs
Gross Profit
Expenditure
Rates and water
Insurance
Light and heat
Property maintenance
Wages and National Insurance
Telephone
Printing and stationery
Postage
Travel and accommodation
Training
Corporate Service team costs
Project motor costs
Current
Professional & consultancy fees
Audit fees
Resident recreation and
resource costs
Carried forward		 £
£
148,294
295,165
28,316
16,341
38,347
69,436
595,899
26,520
569,379
3,573
9,542
17,041
4,646
562,212
913
57
6,472
3,215
2,191
29,602
-
3,740
9,170
3,600
-
655,974
569,379
2024		 2023 2023
£
26,520		 £
50,914		 £
179,103
747,257
30,191
2,497
50,702
63,821
1,073,571
(50,914)
3,573
9,542
17,041
4,646
562,212
913
57
6,472
3,215
2,191
29,602
-
3,740
9,170
3,600
-		 3,034
9,676
32,688
16,279
786,237
2,680
668
5,364
10,806
8,962
54,245
6,005
3,208
10,997
6,493
91
1,022,657
655,974 957,433 1,022,657

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2024 ANNUAL REPORT

TRADING AND PROFIT AND LOSS ACCOUNT

(CONTINUED)

Brought forward
Website costs
Programme non food costs
Subscriptions
IT costs
Tithes
Sundry expenses
Finance costs
Bank charges
Depreciation
Freehold property
Furniture and equipment
Computer equipment
Net (Expenses)		 £
£
655,974
569,379
533
30,344
980
39,353
31,067
651
(758,902)
(189,523)
228
(228)
(189,751)
76,138
2,124
2,812
(81,074)
(270,825)
2024		 2023 2023
£
£
957,433
1,022,657
57
39,962
1,594
41,657
34,416
3,447
(1,078,566)
(55,909)
181
(181)
(56,090)
76,138
2,832
4,218
(83,188)
(139,278)
(139,278)

This page does not form part of the statutory financial statements

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2024 ANNUAL REPORT

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