2024-12-31-accounts

Ref: KRI100

29 October 2024

STRICTLY PRIVATE & CONFIDENTIAL

For the attention of Mr V K Owen Krizevac Project The Winding House Walkers Rise Rugeley Road, Hednesford Staffordshire WS12 5QU

Dear Vince

Krizevac Project Draft final accounts for the year ended 31 December 2024

Please find enclosed electronic documents to be e-signed by yourself.

The documents are :- Full accounts Letter of representation Surplus reconciliation

Please examine these accounts carefully and, if the trustees are satisfied that they show a true and fair view of the state of affairs of the charity, please include electronic signatures where indicated.

The signatures on the above copies signify authorisation for the issue of the accounts and therefore if you have any queries or would like further information, please telephone us before signing.

Upon return of the signed accounts we will forward to you the final bound copies.

If you have any queries regarding the above, or require any further information, then please do not hesitate to contact us.

Yours sincerely

Rachel Common PRICE PEARSON E-mail: [e-mail]

Encs

Price Pearson, Part of Jerroms Group

Finch House 28-30 Wolverhampton Street Dudley West Midlands DY1 1DB

Email: [e-mail] | [e-mail] Tel: [phone]

Price Pearson, Part of Jerroms is a trading style of Price Pearson Limited which is registered in England and Wales. Registered number: 01288173. Registered office: Finch House, 28-30 Wolverhampton Street, Dudley, West Midlands, DY1 1DB.

Licensed to carry out the reserved legal activity of non-contentious probate in England and Wales by the Institute of Chartered Accountants in England and Wales.

A list of directors is open for inspection at the registered office.

pricepearson.com | jerroms.co.uk

Charity registration number 1115608 (England and Wales)

KRIZEVAC PROJECT

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

KRIZEVAC PROJECT

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees	V K Owen
	D Haworth
Charity number	1115608
Principal address	Atlas Works
	Paragon Road
	Longton
	Stoke on Trent
	ST3 1NR
Auditor	Price Pearson
	Finch House
	28-30 Wolverhampton Street
	Dudley
	West Midlands
	DY1 1DB
Bankers	HSBC Bank Plc
	Coventry DSC
	Harry Weston Road
	Binley
	Coventry
	CV3 2TQ
	First Capital Bank Malawi Limited
	Livingstone Towers
	Glyn Jones Road
	Private Bag 122
	Blantyre
	Malawi

KRIZEVAC PROJECT

CONTENTS

	Page
Trustees' report	1 - 5
Independent auditor's report	6 - 9
Statement of financial activities	10
Balance sheet	11
Statement of cash flows	12
Notes to the financial statements	13 - 27

KRIZEVAC PROJECT

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

The trustees present their annual report and financial statements for the year ended 31 December 2024.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity's governing document, the Charities Act 2011 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 (FRS 102) (effective 1 January 2019).

Reference and administrative details

The charity is known as Krizevac Project and is registered with the Charities Commission No. 1115608. It is not known by any other name. During this financial period the address of the principal office of the charity was Atlas Works, Paragon Road, Longton, Stoke-on-Trent, ST3 1NR.

The legal and administrative information forms part of this report.

Objectives and activities

Purposes of the charity set out in the governing document

The purposes of Krizevac Project, as set out in the trust deed, are to relieve poverty and advance education in the poorest parts of the world.

The charity’s mission is symbolised by the erection of crosses on mountains, inspired by the cross overlooking Medjugorje in Bosnia-Herzegovina, as a sign of hope and transformation. To date crosses have been established in Malawi, Rwanda, Kenya, Cameroon and three in Nigeria and it is hoped to complete crosses in Sierra Leone and Ghana in 2025/6.

The Charity’s work is rooted in public benefit, and trustees have had regard to the Charity Commission’s guidance on public benefit in planning and delivering activities.

Key charitable activities include:

• Building and operating schools, colleges and community services in Malawi.

• Creating and supporting enterprises that provide local employment and generate sustainable funding. - Supporting Seibo in Malawi.

• Providing emergency response in Malawi when needed.

• 1 -

KRIZEVAC PROJECT

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

Achievements and performance Activities Summary

Education in Malawi:

• Mary Queen of Peace Catholic Institute expanded provision, opening four new hostels for girls.

• St John Paul II Catholic College relocated, enrolment reached 936.

• Carlo Acutis Catholic High School initiated IT talent programmes and 100% pass rate at JCE

• St Kizito Primary achieved strong exam results with 307 enrolled students and 100% pass rate at Primary School Leaving Certificate.

• Mother Teresa Nursery introduced a new early years curriculum.

Community services:

• Mother Teresa Community Services supported nearly 4,000 beneficiaries.

• Seibo Malawi was brought under Beehive management.

• Seibo Japan expanded coffee sales but faces financial pressure.

Enterprises and employment creation:

• Beehive Enterprises grew IT and digital services for Beehive and are planning commercialization of software for external customers.

• Torrent invested in 17 more electric forklifts; Torrent Agriculture began with 7 tractors and a further 10 electric forklifts are planned for 2025.

• Mary’s Farms acquired land near Lake Malombe, and it is planned to install solar-powered irrigation.

UK and international developments:

• Cycle of Good was closed in 2024.

• Halfords bike donation scheme ceased in April 2025.

• UK property portfolio reviewed, with decision to exit residential lettings.

Financial review

Income

Total £14.31m (2023: £4.67m). This large increase is owing to the donation of all shares in Mobell Communication Limited and Paragon Projection Limited; the nominal value of these businesses (£11.8m) is included in the 2024 turnover.

• Charitable trading income within the UK charity was relatively low: £47.6k (2023: £154k) and, with the cessation of Cycle of Good and bike donations from Halfords, consideration will be given to the ongoing viability of the warehousing and office accommodation in Stoke-on-Trent.

Other income

Mainly rental income from properties totalled £123k (2023: £96k).

Expenditure

Total £3.3m (2023: £3.3m).

• Charitable activities: £3.02, including £1.9m grants (Beehive, Malawi £2.7m, Seibo Malawi £299k, Nigeria agriculture £14k).

• Raising funds: £282k.

Result: Net surplus fund balances in 2024 are bolstered by the £11.8m value of the companies and total 14.7m at the year end (2023: £3.6m).

Reserves Policy

Trustees aim to maintain six months’ core expenditure; current reserves meet this requirement. Within Mobell Communications Limited there is an additional reserve requirement to service the MobalPay prepaid debit card customers in Japan, currently amounting to approximately £500,000.

• 2 -

KRIZEVAC PROJECT

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

Risk Management

The trustees review risks on an ongoing basis and satisfy themselves that adequate systems and procedures are in place to manage the risks identified.

Other risks identified include:

• In Mobell Communications, new e-SIM entrants have taken market share and the weak Japanese Yen, in which most income is derived, puts the large proportion of UK costs into stark relief.

• Dependence on the two trading subsidiaries rather than donations makes income unpredictable.

• Governance in Malawi: strengthened with new legal/financial oversight and integration of Seibo.

• Currency devaluation in Malawi and growing inflation (28%): managed through forex reserves and sustainable

• enterprises.

• Succession and governance: addressed through CIO conversion and new trustee recruitment in prospect.

Plans for future periods

On 31 January 2025, Krizevac Project were gifted 40% of the shareholding in British Desiccant Drying Limited.

Other future plans for 2025 and beyond include:

Complete conversion of Krizevac Project into a Charitable Incorporated Organisation (CIO) , transferring all assets and dissolving the trust and Krizevac Ltd.

Strengthen governance through appointment of new trustees, including Jo Owen and Declan Somers.

Expand Mary’s Farms and agro-processing capacity at Chileka to ensure sustainable production of Likuni Phala.

Broaden Paragon Projection Ltd equipment offering and expand London warehousing.

Drive innovation at Mobell Communications Ltd , including Mobal Pay and new digital services.

Launch commercialisation of Beehive’s software and IT services.

Place at least one new Krizevac Cross in Africa.

Rebuild the international volunteer pipeline to support Malawi schools and construction.

Structure, governance and management

Krizevac Project is an unincorporated charitable trust governed by a Declaration of Trust dated 20 July 2006. Trustees are appointed or re-appointed by unanimous agreement among existing trustees.

During 2024, the charity underwent significant change:

• On 31 December 2024, 100% of the shares in Krizevac Ltd (formerly Radmore Management Ltd) were gifted to the charity. Krizevac Ltd owns Mobell Communications Ltd and Paragon Projection Ltd, which now operate as wholly-owned trading subsidiaries.

• In early 2025 the charity also received a 40% shareholding in British Desiccant Drying Ltd, donated by the late Tony Smith.

• 3 -

KRIZEVAC PROJECT

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

The trustees who served during the year and up to the date of signature of the financial statements were: A J Smith (Deceased 15 May 2025) Miss J M Smith (Deceased 23 May 2025) V K Owen D Haworth

Following the deaths of Tony and Josie Smith, the board of trustees currently comprises Vince Owen and David Haworth. Additional trustees are to be recruited and it has been agreed in principle that Declan Somers and Joseph Owen will be appointed as a trustees during 2025. On conversion to a CIO, David Haworth will serve as Chair and Vince Owen will continue as Managing Director. No trustee received any remuneration for their role as trustee.

Related Organisations

Beehive Centre for Social Enterprise (Beehive) has been the charity’s major beneficiary and this is constituted as a non-profit company, registered by guarantee in Malawi, with objectives common to Krizevac Project. The Krizevac Project Managing Director is also Chairman of the board of 9 directors of Beehive.

Krizevac Project (Malawi), is also registered as a nonprofit company in Malawi, limited by guarantee, with the same objectives. This is an autonomous entity, not a subsidiary, which owns property in Malawi, has no employees or contracts for services, and has been used to disburse charity funds and to maximise benefit of Krizevac Project donations through short term, in country investments. One of the Krizevac Project (Malawi) trustee is also a Trustee of Krizevac Project (UK) and a further two are Malawian nationals.

On 31 December 2024 Krizevac Project was gifted 100% of the shares in Krizevac Ltd. (formerly Radmore Management Company Limited) which in turn controls Mobell Communications Limited and Paragon Projection Limited. V K Owen, a trustee of Krizevac Project, is a director of all 3 companies and was the owner of 10% of the shares gifted to the charity.

Statement of trustees' responsibilities

The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that year.

In preparing these financial statements, the trustees are required to:

• select suitable accounting 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 accounting standards have been followed, subject to any material departures disclosed

• and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.

Auditor

In accordance with the company's articles, a resolution proposing that Price Pearson be reappointed as auditor of the company will be put at a General Meeting.

• 4 -

KRIZEVAC PROJECT

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

..............................

V K Owen Trustee

Date: .............................................

• 5 -

KRIZEVAC PROJECT

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2024

Unrestricted funds Notes £ Income and endowments from: Donations and legacies 3 14,139,287 Other trading activities 4 47,652 Other income 5 123,002 Total income 14,309,941 Expenditure on: Raising funds 6 11,745 Charitable activities 7 3,016,944 Support & governance 9 260,167 Total resources expended 3,288,856 Net income for the year/ Net movement in funds 11,021,085 Fund balances at 1 January 2024 3,633,965 Fund balances at 31 December 2024 14,655,050	Restricted funds £ 2,500 - - 2,500 - 2,500 - 2,500 - 50 50	Total 2024 £ 14,141,787 47,652 123,002 14,312,441 11,745 3,019,444 260,167 3,291,356 11,021,085 3,634,015 14,655,100	Total 2023 £ 4,415,312 154,388 95,599
			4,665,299
			57,255 1,822,568 224,978
			2,104,801
			2,560,498 1,073,517
			3,634,015

The statement of financial activities includes all gains and losses recognised in the year.

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

• 10 -

KRIZEVAC PROJECT

BALANCE SHEET

AS AT 31 DECEMBER 2024

			2024		2023
	Notes	£	£	£		£
Fixed assets
Tangible assets	13		188,301			340,563
Investment properties	14		1,019,352			2,161,717
Investments	15		11,819,598			-
			13,027,251			2,502,280
Current assets
Debtors	17	7,850		25,283
Cash at bank and in hand		1,666,064		1,142,152
		1,673,914		1,167,435
Creditors: amounts falling due within	18
one year		(46,065)		(35,700)
Net current assets			1,627,849			1,131,735
Total assets less current liabilities			14,655,100			3,634,015
Income funds
Restricted funds	21		50			50
Unrestricted funds			14,655,050			3,633,965
			14,655,100			3,634,015

The accounts were approved by the Trustees on .........................

.............................. V K Owen Trustee

• 11 -

KRIZEVAC PROJECT

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024

Notes Cash flows from operating activities Cash (absorbed by)/generated from operations 1 Investing activities Purchase of tangible fixed assets Proceeds from disposal of tangible fixed assets Proceeds from disposal of investment property Net cash generated from/(used in) investing activities Net cash used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year	2024 £ £ (703,161) (26,883) - 1,253,956 1,227,073 - 523,912 1,142,152 1,666,064	2023 £ £ 904,927 (8,843) 2,000 - (6,843) - 898,084 244,068 1,142,152

• 12 -

KRIZEVAC PROJECT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

1 Cash generated from operations 2024 £ Surplus for the year 11,021,085 Adjustments for: Gain on disposal of tangible fixed assets - Loss on disposal of investment property 63,410 Depreciation and impairment of tangible fixed assets 4,145 Non cash donations (11,819,599) Movements in working capital: (Increase)/decrease in stocks - Decrease/(increase) in debtors 17,433 Increase/(decrease) in creditors 10,365 Cash (absorbed by)/generated from operations (703,161)

2023 £ 2,560,498 (2,000) - 6,305 (1,598,508) 31,346 (4,878) (87,836) 904,927

2 Accounting policies

Charity information

Krizevac Project is constituted as an unincorporated charitable trust under a Declaration of Trust dated 25 June 2006.

2.1 Accounting convention

The accounts have been prepared in accordance with the Charity's governing document, the Charities Act 2011 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 (FRS 102)” (as amended for accounting periods commencing from 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

2.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

2.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

• 13 -

KRIZEVAC PROJECT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

2 Accounting policies

(Continued)

2.4 Incoming resources

Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income from trading activities is recognised when the significant risks and rewards of ownership are transferred to the buyer.

Other income is accounted for on a receivable basis.

2.5 Resources expended

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Charitable activities include grants made in accordance with the terms of the trust deed.

Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees.

2.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings improvements 25% p.a. straight line basis Fixtures, fittings & equipment 25% p.a. straight line basis Motor vehicles 25% p.a. straight line basis

Freehold land is not depreciated.

Freehold buildings have a residual value at least equal to the value in the accounts and are therefore not depreciated. This is reviewed on an annual basis to ensure no impairment is required.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

2.7 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

• 14 -

KRIZEVAC PROJECT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

2 Accounting policies

(Continued)

2.8 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

2.9 Impairment of fixed assets

At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

2.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

2.11 Financial instruments

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

• 15 -

KRIZEVAC PROJECT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

2 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.

2.12 Taxation

The charity is exempt from tax on its charitable activities.

2.13 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2.14 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2.15 Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2.16 Government Grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

• 16 -

KRIZEVAC PROJECT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

3 Donations and legacies

Unrestricted funds 2024 £ Donations and gifts 2,319,689 Donation of shares in trading subsidaries 11,819,598 14,139,287 For the year ended 31 December 2023 4,397,180 Other trading activities Revenue from sales Elephant bike sales Cycle of goods sales	Restricted funds 2024 £ 2,500 - 2,500 18,132	Total 2024 £ 2,322,189 11,819,598 14,141,787 2024 £ 24,017 767 22,868 47,652	Total 2023 £ 4,415,312 -
			4,415,312
			4,415,312
			2023 £ 68,770 18,429 67,189
			154,388
All income from trading activities relates to unrestricted funds.

4 Other trading activities

5 Other income

Other income	2024 £ 123,002	2023 £ 95,599
All other income relates to unrestricted funds.

• 17 -

KRIZEVAC PROJECT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

6 Raising funds

Fundraising and publicity Advertising Trading costs Elephant bike costs Cycle of goods costs Postage	2024 £ 1,016 80 3,729 6,920 11,745	2023 £ 6,299 1,949 37,778 11,229
		57,255

All expenditure in respect of raising funds relates to unrestricted funds for both 2024 and 2023.

7 Charitable activities

Staff costs Charitable expenditure Shipping - exports Volunteer expenses Grant funding of activities (see note 8) Analysis by fund Unrestricted funds Restricted funds For the year ended 31 December 2023 Unrestricted funds Restricted funds	Malawi	Seibo	Nigeria 2024 £ - - - - - 16,944 16,944 16,944 - 16,944 14,191 - 14,191	Total 2024 £ 81,817 961,900 48,660 5,624 1,098,001 1,921,443 3,019,444 3,016,944 2,500 3,019,444	Total 2023 £ 99,952 250,752 82,929 3,985
	2024 £ 81,817 961,900 48,660 5,624 1,098,001 1,605,239 2,703,240 2,700,740 2,500 2,703,240 1,572,114 18,132 1,590,246	2024 £ - - - - - 299,260 299,260 299,260 - 299,260 218,131 - 218,131
					437,618 1,384,950
					1,822,568
					1,804,436 18,132
					1,822,568
					1,804,436 18,132
					1,822,568

• 18 -

KRIZEVAC PROJECT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

8 Grants payable

		Malawi	Malawi		Seibo		Nigeria			Total	Total	Total
			2024		2024		2024			2024	2023
			£		£		£			£	£
	Grants to institutions:
	Construction and provision of services	1,605,239			-		-		1,605,239		1,152,628
	School meals		-		299,260		-		299,260		218,131
	Agricultural project		-		-		16,944		16,944		14,191
		1,605,239			299,260		16,944		1,921,443		1,384,950
9	Support costs
	**Support costs **		Governance				2024		**2023 **	Basis	of
					costs					allocation
		£			£		£		£
	Staff costs	130,544			-		130,544		135,176	Staff time
	Depreciation	4,145			-		4,145		6,305	Actual
	(Profit)/loss on disposals	63,410			-		63,410		(2,000) Actual
	Exchange gains	(25,213)			-		(25,213)		9,145	Actual
	Business rates	10,022			-		10,022		1,760	Actual
	General insurance	7,063			-		7,063		3,570	Actual
	Utilities	10,285			-		10,285		(2,279) Actual
	Motor running costs	3,392			-		3,392		4,705	Actual
	Telecommunications	1,680			-		1,680		1,144	Actual
	Printing, postage & stationery	1,698			-		1,698		1,477	Actual
	Sundry expenses	9,821			-		9,821		10,858	Actual
	Repairs & maintenance	22,273			-		22,273		20,533	Actual
	Legal & professional fees	9,475			-		9,475		15,643	Actual
	Advertising & promotion	209			-		209		832	Actual
	Travel expenses	4,790			-		4,790		7,783	Actual
	Bank charges	573			-		573		646	Actual
	Audit fees	-			6,000		6,000		9,680	Governance
		254,167			6,000		260,167		224,978

All expenditure in respect of support costs relate to unrestricted funds for both 2024 and 2023.

• 19 -

KRIZEVAC PROJECT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

10	Net movement in funds	2024	2023
		£	£
	The net movement in funds is stated after charging/(crediting):
	Exchange (gains)/losses	(25,213)	9,145
	Fees payable for the audit of the charity's financial statements	6,000	9,680
	Depreciation of owned tangible fixed assets	4,145	6,304
	Loss/(profit) on disposal of tangible fixed assets	-	(2,000)
	Loss on disposal of investment property	63,410	-

11 Trustees

None of the trustees (or any persons connected with them) received any remuneration or were reimbursed for expenses during the period, but 2 of them were reimbursed a total of £4,956 for travelling expenses in the previous year to 31 December 2023.

12 Employees

Number of employees

The average monthly number of employees during the year was:

Administration Drivers Employment costs Wages and salaries Social security costs Other pension costs	2024 Number 5 - 5 2024 £ 192,374 12,792 7,195 212,361	2023 Number 7 1
		8
		2023 £ 211,448 18,264 5,416
		235,128

There were no employees whose annual remuneration was £60,000 or more.

• 20 -

KRIZEVAC PROJECT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

13 Tangible fixed assets Land and buildings improvements £ Cost At 1 January 2024 582,833 Additions 26,291 Transfer to investment property (175,000) At 31 December 2024 434,124 Depreciation and impairment At 1 January 2024 250,724 Depreciation charged in the year 1,759 At 31 December 2024 252,483 Carrying amount At 31 December 2024 181,641 At 31 December 2023 332,109 14 Investment property Fair value At 1 January 2024 Transfers from owner-occupied property Disposals At 31 December 2024	Fixtures, fittings & equipment £ 32,343 592 - 32,935 32,179 175 32,354 581 164	Motor vehicles Total £ £ 8,843 624,019 - 26,883 - (175,000) 8,843 475,902 553 283,456 2,211 4,145 2,764 287,601 6,079 188,301 8,290 340,563 2024 £ 2,161,717 175,000 (1,317,366) 1,019,352

On 6 July 2023 A J Smith donated his family home to The Krizevac Project, the property had a value of £1,250,000. This property was then sold on the 31 May 2024 for a value of £1,171,471.

On 15 November 2024, another investment property was sold for a value of £82,485.

In the previous year on the 15 December 2023, Krizevac Ltd. (formerly Radmore Management Limited) donated three of it's properties to The Krizevac Project at a value of £348,507.

During the year £175,000 was transferred from Land & Buildings to Investment Property, due to a higher proportion of the property being rented to third parties.

The investment properties were valued at 31 December 2024 by the directors at £1,019,352.

The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

• 21 -

KRIZEVAC PROJECT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

15 Fixed asset investments

	Other
	investments
	£
Cost or valuation
At 1 January 2024	-
Additions	11,819,598
At 31 December 2024	11,819,598
Carrying amount
At 31 December 2024	11,819,598
At 31 December 2023	-

On 31 December 2024, Krizevac Project was gifted 100% of the share capital in Krizevac Ltd. (formerly Radmore Management Limited).

The entire value of Krizevac Ltd. including its subsidiaries Mobell Communications Limited, Paragon Projection Limited and Mobal Communications Inc. was donated to Krizevac Project for a value of £11,819,598.

16 Financial instruments Carrying amount of financial assets Debt instruments measured at amortised cost Carrying amount of financial liabilities Measured at amortised cost 17 Debtors Amounts falling due within one year: Trade debtors Other debtors Prepayments and accrued income	2024 £ 1,140 40,187 2024 £ 469 2,452 4,929 7,850	2023 £ 6,368
		29,537
		2023 £ 2,175 16,668 6,440
		25,283

• 22 -

KRIZEVAC PROJECT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

18 Creditors: amounts falling due within one year

18 Creditors: amounts falling due within one year
Other taxation and social security Trade creditors Other creditors Accruals and deferred income 19 Retirement benefit schemes Defined contribution schemes Charge to profit or loss in respect of defined contribution schemes	2024 £ 5,878 24,230 2,700 13,257 46,065 2024 £ 7,195	2023 £ 6,163 9,965 3,898 15,674
		35,700
		2023 £ 5,416

The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund.

20 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 January 2024 £ General funds 3,633,965 Previous year: At 1 January 2023 £ General funds 1,073,467	Incoming resources £ 14,309,941 Incoming resources £ 4,647,167	Resources expended £ (3,288,856) Resources expended £ (2,086,669)	At 31 December 2024 £ 14,655,050
			At 31 December 2023 £ 3,633,965

• 23 -

KRIZEVAC PROJECT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

21 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

Balance at 1 January 2024 £ Unrestricted funds: 3,633,965 Restricted funds: Give a Child a Chance Campaign 50 Groundwork West Midlands - 3,634,015	Movement in funds Incoming resources Resources expended Balance at 31 December 2024 £ £ £ 14,309,941 (3,288,856) 14,655,050 1,000 (1,000) 50 1,500 (1,500) - 14,312,441 (3,291,356) 14,655,100	Movement in funds Incoming resources Resources expended Balance at 31 December 2024 £ £ £ 14,309,941 (3,288,856) 14,655,050 1,000 (1,000) 50 1,500 (1,500) - 14,312,441 (3,291,356) 14,655,100
		14,655,100

Give a Child a Chance Campaign

Sponsorship of children's places in Mother Teresa Children's Centre for orphans and vulnerable children.

Groundwork West Midlands

Grant application for energy efficient lighting.

22 Analysis of net assets between funds

Unrestricted £ Fund balances at 31 December 2024 are represented by: Tangible assets 188,301 Investment properties 1,019,352 Investments 11,819,598 Current assets 1,627,799 14,655,050	Unrestricted £ Fund balances at 31 December 2024 are represented by: Tangible assets 188,301 Investment properties 1,019,352 Investments 11,819,598 Current assets 1,627,799 14,655,050	Restricted £ - - - 50 50	Total £ 188,301 1,019,352 11,819,598 1,627,849
	£ 188,301 1,019,352 11,819,598 1,627,799 14,655,050
			14,655,100

• 24 -

KRIZEVAC PROJECT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

23 Subsidiaries

These financial statements are separate Charity financial statements for Krizevac Project.

Details of the Charity's subsidiaries at 31 December 2024 are as follows:

Name of undertaking	Registered	Nature of business	Class of	% Held	% Held
	office		shares held	**Direct **	Indirect
Krizevac Ltd.	England and	Management Services		100.00
	Wales
Mobell Communications	England and	Telephone Hire	Ordinary		100.00
Limited	Wales
Paragon Projection Limited	England and	Plant Hire			100.00
	Wales
Mobal Communications Inc.	USA	Telephone Hire			100.00

The aggregate capital and reserves and the result for the year of subsidiaries included in the consolidation was as follows:

Name of undertaking	Profit/(Loss)	Capital and
		Reserves
	£	£
Krizevac Ltd.	122,219	1,452,919
Mobell Communications
Limited	2,155,364	569,566
Paragon Projection Limited	470,845	4,539,747
Mobal Communications Inc.	(402,860)	460

Mobal Communications Inc. was dissolved on the 23 January 2025.

• 25 -

KRIZEVAC PROJECT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

24 Operating lease commitments

The operating leases represent a lease to a third party. The lease is negotiated over a term of 6 years and rentals are fixed until the 1 January 2020 and renewed every second anniversary of that date. A Tenants Break clause is included as at the 1 January 2021. The tenant must give at least 6 months notice before the break date.

At the reporting end date the Charity had contracted with tenants to receive the following minimum lease payments:

payments:
Within one year Between two and five years	2024 £ 66,915 144,982 211,897	2023 £ 66,915 211,897
		278,812

25 Events after the reporting date

On 31 January 2025, Krizevac Project were gifted 40% of the shareholding in British Desiccant Drying Limited. This was donated by former trustee A J Smith.

Mobal Communications, Inc. was dissolved on the 23 January 2025.

• 26 -

KRIZEVAC PROJECT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

26 Related party transactions

A J Smith and Miss J M Smith controlled Krizevac Ltd. (formerly Radmore Management Limited), which in turn controlls Mobell Communications Limited and Paragon Projection Limited. On 31 December 2024, A J Smith, Miss J M Smith and V K Owen donated all of their shares in Krizevac Ltd. for a value of £11,819,598. During the year, the charity received donations of £Nil (2023 : £2,769,597) from Mobell Communications Limited and £Nil (2023: £Nil) from Paragon Projection Limited. In 2024, Krizevac Ltd. made donations of £2,281,529. In the previous year, on the 15 December 2023 three properties were donated by Krizevac Lid. worth £348,507.

A J Smith is a director and owns 50% of the share capital in British Desiccant Drying Limited. During the year, the charity received donations of £Nil (2023 : £25,000) from British Desiccant Drying Limited.

In the previous year on 15 July 2023, A J Smith donated his family home to The Krizevac Project, the property had a value of £1,250,000.

The charity paid out grants in 2024 to Beehive Centre For Social Enterprise of £1,605,239 (2023 : £1,152,628) ; A J Smith and V K Owen are directors of the non-profit Association, Beehive Centre for Social Enterprise.

Also during the year the charity paid grants to the Japanese-registered non-profit organisation, Seibo of £299,260 (2023 : £218,831), A J Smith and V K Owen are trustees of Seibo.

A J Smith and Miss J M Smith passed away on the 15 May 2025 and 23 May 2025. There directorships and trusteeships stated above stood until the date of their deaths.

Remuneration of key management personnel

The remuneration of key management personnel was as follows:

	2024	2023
	£	£
Aggregate compensation	48,351	44,817

• 27 -

Krizevac Project The Winding House Walkers Rise Rugeley Road, Hednesford Staffordshire WS12 5QU

The Directors Price Pearson

Chartered Accountants & Registered Auditors Finch House 28-30 Wolverhampton Street Dudley West Midlands DY1 1DB

Dear Sirs,

This representation letter is provided in connection with your audit of the accounts of Krizevac Project for the year ended 31 December 2024 for the purpose of expressing an opinion as to whether the accounts give a true and fair view of the results and financial position of Krizevac Project in accordance the Charities Act 2011 and regulations thereunder, and United Kingdom Financial Reporting Standards.

• 1) We have fulfilled our responsibilities as trustees, as set out in the terms of your engagement dated 24 July 2018 under the Charities Act 2011 and regulations thereunder, for preparing accounts which give a true and fair view of the financial position of Krizevac Project as of 31 December 2024 and of the incoming resources and application of the resources of the charity in that year and for making accurate representations to you.

• 2) All accounting records and relevant information have been made available to you for the purpose of your audit and all transactions undertaken by the charitable company have been properly reflected in the accounting records or other information provided to you. All other records and related information including minutes of all management and trustees meetings have been made available to you.

• 3) We acknowledge our responsibilities for the design and implementation of internal control to prevent and detect error and fraud. We confirm the accounts are free of material misstatements, including omissions.

• 4) There have been no irregularities or allegations thereof involving directors/trustees, management or employees who have a significant role in internal control or that could have a material effect on the financial statements. We also confirm that we are not aware of any allegations of fraud by former directors/trustees, employees, regulators or others.

On behalf of the Trustees,

........................................................ Trustee V K Owen,

Date ……………………………

Continued …

2

• 5) We confirm that we have advised you of all laws and regulations considered central to the operation of the charitable company or which provide a legal framework within which the charitable company conducts its operations and that we are not aware of any possible or actual instance of non-compliance with those laws and regulations. The charitable company has complied with all aspects of contractual agreements that could have a material effect on the financial statements in the event of non-compliance.

• 7) We have no plans or intentions that may materially alter the carrying value and where relevant the fair value measurements or classification of assets and liabilities reflected in the financial statements.

• 8) We confirm that we have disclosed to you the identity of the charitable company’s related parties and all related party relationships and transactions relevant to the charitable company and that we are not aware of further related party matters that require disclosure other than those already disclosed in the accounts.

• 9) We confirm that, in our opinion, the charitable company’s financial statements should be prepared on the grounds that current and future sources of funding or support will be more than adequate for the charitable company’s needs.

• 10) The charitable company has satisfactory title to all assets and there are no liens or encumbrances on the assets except for those disclosed in the accounts.

• 11) There are no liabilities or provisions, contingent liabilities or guarantees to third parties other than those disclosed in the accounts.

• 12) There have been no events since the balance sheet date which require disclosure or which would materially affect the amounts in the accounts, other than those already disclosed or included in the accounts.

• 13) We confirm that all grants, donations and other income, including those subject to special terms or conditions or received for restricted purposes, have been notified to you. There have been no breaches of terms or conditions during the period regarding the application of such income.

• 14) We confirm that we are not aware of any matters of material significance that should be reported to the Charity Commission.

• 15) We confirm that there are control systems in place to ensure that all items donated to Krizevac Project are used to further the Charity’s objects.

• 16) We confirm that grants paid should include £1,605,239 in respect of Beehive Centre for Social Enterprise and £Nil in respect of Torrent Mozambique.

• 17) In our opinion the investment properties in the accounts had an estimated value of £1,019,352 as at 31 December 2024.

Continued …

On behalf of the Trustees,

........................................................ Trustee V K Owen,

Date ……………………………

3

We confirm to the best of our knowledge and belief that the above representations are made on the basis of enquiries of management and staff with relevant knowledge and experience and, where appropriate, of inspection of supporting documentation sufficient to satisfy ourselves that we can properly make each of the above representations to you.

We acknowledge our legal responsibilities regarding disclosure of information to you as auditors and confirm that so far as we are aware, there is no relevant audit information needed by you in connection with preparing your audit report of which you are unaware. Each Trustee has taken all the steps that they ought to have taken as a Trustee in order to make themselves aware of any relevant audit information and to establish that you are aware of that information.

On behalf of the Board of Trustees

Yours faithfully,

On behalf of the Trustees,

........................................................ Trustee V K Owen,

Date ……………………………

Krizevac Project

Year Ended 31 December 2024 Surplus Reconciliation

	£	£
Gain per client TB		11,021,024
Adjustments:
Post 2022 OB adjustments	(150)
Post 2023 OB adjustments	211
		61
Surplus per accounts presented to audit		11,021,085
Unadjusted errors
Pension difference (rectified after year end)		(282)
USD bank FX difference		16
Krizevac Malawi donations translation difference		9
Paypal statement		(66)
Electricity - missing invoices		(588)
		(911)

On behalf of the Board of Trustees of Krizevac Project I have considered the adjustments listed above and agree that they should be adjusted or not adjusted as shown.

Signed …………………………………………………… (Trustee)

Ref: KR100

29 October 2025

STRICTLY PRIVATE & CONFIDENTIAL

The Board of Trustees Krizevac Project The Winding House Walkers Rise Rugeley Road, Hednesford Staffordshire WS12 5QU

Dear Sirs

In accordance with our normal practice and further to our meeting we are writing to draw your attention to various matters which arose during the course of our audit of the company’s accounts for the year ended 31 December 2024.

1. Adjustments to the accounts

We attach a surplus reconciliation together with explanations. Please let us know if you have any further queries regarding any of these.

2. Unadjusted misstatements

A schedule is attached of all the unadjusted misstatements determined during the course of our audit, except for those we consider to be clearly trivial.

3. Letter of representation

A final letter of representation is attached. We draw your attention to paragraphs 15-16 in other respects the letter is routine.

In addition we are required by auditing standards to give you the following negative assurances:

4. Audit report

We do not intend to qualify our audit report.

5. Material weaknesses in the accounting and internal control systems

• As you are aware from our letter of engagement, our audit procedures were directed towards testing the accounting systems in operation upon which we have based our assessment of the accounts. Our report is not meant to be a full and accurate reflection of all weaknesses that may be present in your system. We are aware that due to the small size of the management team all internal control functions are carried out by you. Therefore we have nothing that we wish to bring to your attention in this respect as a result of our audit work.

6. Other matters required by Auditing Standards to be communicated There are no other matters that we are required to communicate to you.

7. Other relevant matters relating to the audit

There are no other matters which we wish to draw to your attention.

We would like to take this opportunity of expressing our thanks to your staff for their assistance during the course of our audit.

Please note that this report has been prepared for the sole use of Krizevac Project. It must not be disclosed to third parties, quoted or referred to, without our prior written consent. No responsibility is assumed by us to any other person.

If we can be of any further assistance, please contact Mr Chris Cooper.

Yours faithfully

PRICE PEARSON

Price Pearson, Part of Jerroms Group

Finch House 28-30 Wolverhampton Street Dudley West Midlands DY1 1DB

Email: [e-mail] | [e-mail] Tel: [phone]

Price Pearson, Part of Jerroms is a trading style of Price Pearson Limited which is registered in England and Wales. Registered number: 01288173. Registered office: Finch House, 28-30 Wolverhampton Street, Dudley, West Midlands, DY1 1DB. Licensed to carry out the reserved legal activity of non-contentious probate in England and Wales by the Institute of Chartered Accountants in England and Wales.

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A list of directors is open for inspection at the registered office.