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← European Lung Foundation

2025-03-31-accounts

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

CHARITY REGISTRATION NUMBER 1118930 COMPANY REGISTRATION NUMBER 05718525

EUROPEAN LUNG FOUNDATION

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

EUROPEAN LUNG FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Directors Prof. J G Aymerich
Mr D Kontopidis
Trustees Mr W Bill
Prof. J G Aymerich
Mr D Kontopidis
Head of European Lung Dr P Powell
Foundation
Secretary Mr W Bill
Charity number 1118930
Company number 05718525
Principal address 442 Glossop Road
Sheffield
South Yorkshire
S10 2PX
Registered office 442 Glossop Road
Sheffield
South Yorkshire
S10 2PX
Auditors UHY Hacker Young
6 Broadfield Court
Broadfield Way
Sheffield
S8 0XF
Bankers HSBC Bank plc
2 Fargate
Sheffield
S1 2JS

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

EUROPEAN LUNG FOUNDATION CONTENTS

Page
Trustees' report 1 - 4
Statement of trustees' responsibilities 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

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

EUROPEAN LUNG FOUNDATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2025

The trustees present their annual report and financial statements for the year ended 31 March 2025.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 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)".

Objectives and activities

The charity's objectives are to promote and protect the physical and mental health of sufferers of lung disease and its related risks, primarily in Europe; to advance the education and understanding of the public about lung disease and its related risk factors; to promote research into lung disease for the public benefit.

The European Lung Foundation is a patient-led organisation that works internationally to bring patients and the public together with healthcare professionals to improve lung health and advance diagnosis, treatment and care. The charitable company works to communicate and translate into European languages the work of respiratory professionals to those outside the respiratory field. The European Lung Foundation also works to ensure that people with lung diseases and the general public have the opportunity to influence respiratory research, guidelines and policy at the European level.

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities. All the activities are undertaken to further the charity's charitable purposes for the public benefit.

Achievements and performance

The European Lung Foundation has achieved its charitable objectives by educating people across Europe about lung health and disease, as is proved through its website and social media statistics and media and press clippings. It has also increased the accessibility of health professionals and the scientific community to patients through its engagement of patient organisations in the work of the European Respiratory Society. A range of achievements are included here:

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EUROPEAN LUNG FOUNDATION

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2025

Improving knowledge and understanding, and support self management

Being patient-driven

Engage and empower

Having a strong and diverse community and voice

Ensuring good governance

Financial review

The charity's total income for the year was £498,119 (2024: £379,966). Expenditure amounted to £571,949 (2024: £687,901) leaving a deficit of £73,830 (2024: deficit of £307,935). Restricted funds totalled £15,050 (2024: £19,578) and unrestricted funds totalled £234,199 (2024: £303,501), of which £233,914 were freely available.

It is the policy of the charity that unrestricted funds which have not been designated for a specific use are maintained at a limited level. Generally speaking, reserves are aimed to be kept at around 6-9 months of expenditure - such that they are of sufficient size to act as a buffer zone for any unforeseen costs to ensure the charity can continue its current activities in the forthcoming year.

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

EUROPEAN LUNG FOUNDATION

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2025

ELF’s funding sources have been being diversified. The funds provided have been utilised to further the objectives as described above.

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

The major risks include a loss of income from the European Respiratory Society. This is mitigated by a contract between the parties ensuring that European Lung Foundation will have notice of more than one financial year in advance of any changes in planned funding. This time will enable European Lung Foundation to find alternative sources of funding, if required. And the diversification that European Lung Foundation has managed to achieve.

Another risk facing the charity is the loss of EU funding. This risk is mitigated by ensuring that the charity is involved in as many project applications as it has capacity using different EU funding streams. EU funding makes up a limited amount of the overall income and so would have limited affect, should funding be lost. ELF has opened an office in Brussels together with ERS - called Lungs Europe - to mitigate any effects of Brexit.

ELF has now employed a full-time fundraiser to further investigate funding options, including individuals. foundations and companies.

Plans for future periods

The aims of the European Lung Foundation in 2025/2026 are to continue to translate the work of respiratory professionals to the public and patients to improve knowledge about lung disease specifically and to improve patient and public influence on respiratory health and medicine.

European Lung Foundation will also continue working on its current EU projects, as well as potentially being involved with a number of new projects and project applications in 2025/2026.

ELF started working within the parameters of a new strategy from 2023, which has been defined by ELF and all its stakeholders.

Structure, governance and management

The charity is a registered charity and is also a company limited by guarantee under the provisions of the Companies Act 2006. The charitable company does not have any share capital.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were: Mr W Bill

Prof. J G Aymerich

Mr D Kontopidis

The directors are appointed by the Executive Committee of the ultimate controlling party, European Respiratory Society, which is based in Switzerland. It is the normal duty of the Secretary General of the European Respiratory Society and the Chair of the European Lung Foundation to become directors of the charitable company.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

EUROPEAN LUNG FOUNDATION

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2025

The European Lung Foundation Council is the main decision-making body of the charitable company. This is made up of five members of the European Respiratory Society and five patient members. Meetings of the Council are held a minimum of 3 times a year and decisions are made via majority vote. Members of the Council include the directors of the charitable company. The Director of the European Lung Foundation makes decisions about the everyday running of the charitable company, based on a strategy defined every 3 years, and a work plan and budget agreed annually with the European Lung Foundation Council. The Director of the European Lung Foundation may from time to time consult with the European Lung Foundation Chair and Secretary (both of whom are directors) for approval on certain decisions.

All new trustees will meet with the European Lung Foundation Director and Chair immediately after their appointment. In this meeting the functioning of the charity and the trustee's role and responsibilities will be outlined in detail together with an accompanying document. If required, new trustees are invited to the European Lung Foundation office in Sheffield to provide a more in-depth overview of the foundation's activities and to meet the staff.

The pay of key management personnel is reviewed annually in December. The Director of the European Lung Foundation proposes a salary increment and bonus, which is benchmarked against other comparable positions in the UK. Two members of the ERS leadership then assess the level of proposed pay and modify as appropriate before giving their approval.

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.

Mr D Kontopidis Trustee Dated: 30 September 2025

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EUROPEAN LUNG FOUNDATION

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2025

The trustees, who are also the directors of European Lung Foundation for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare accounts 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, including the income and expenditure, of the charitable company for that year.

In preparing these accounts, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity 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.

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

6 Broadfield Court Broadfield Way Sheffield S8 0XF

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EUROPEAN LUNG FOUNDATION

Opinion

We have audited the financial statements of European Lung Foundation (the ‘charity’) for the year ended 31 March 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (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 charity 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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’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.

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EUROPEAN LUNG FOUNDATION CONTINUED

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EUROPEAN LUNG FOUNDATION CONTINUED

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity 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 charity’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 have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EUROPEAN LUNG FOUNDATION CONTINUED

Based on our understanding of the charity and the sector in which it operates, we identified the principal risks of non-compliance with laws and regulations related to the acts by the charity, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to inflated revenue for the year.

Audit procedures performed included: review of the financial statement disclosures to underlying supporting documentation, review of correspondence with and reports to the regulators, including correspondence with the Charity Commission, review of correspondence with legal advisors, enquiries of management in so far as they related to the financial statements, and in testing of journals and evaluating whether there was evidence of bias by the trustees that represented a risk of material misstatement due to fraud.

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the company’s members 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Michael Mealing (Senior Statutory Auditor) for and on behalf of UHY Hacker Young 30 September 2025

Chartered Accountants Statutory Auditor

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

EUROPEAN LUNG FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds 2025 funds funds 2024
Notes £ £ £ £ £ £
Income from:
Donations 3 61,091 - 61,091 15,283 - 15,283
Charitable activities
The relief and care of
lung disease 4 354,321 82,707 437,028 251,100 113,583 364,683
Total income 415,412 82,707 498,119 266,383 113,583 379,966
Expenditure on:
Charitable activities
The relief and care of
lung disease 5 512,910 59,039 571,949 499,021 188,880 687,901
Total charitable
expenditure 512,910 59,039 571,949 499,021 188,880 687,901
Net
(outgoing)/incoming
resources before (97,498) 23,668 (73,830) (232,638) (75,297) (307,935)
transfers
Gross transfers
between funds 28,196 (28,196) - - - -
Net expenditure for the
year/
Net movement in funds (69,302) (4,528) (73,830) (232,638) (75,297) (307,935)
Fund balances at 1
April 2024 303,501 19,578 323,079 536,139 94,875 631,014
Fund balances at 31
March 2025 234,199 15,050 249,249 303,501 19,578 323,079

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

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

EUROPEAN LUNG FOUNDATION

BALANCE SHEET

AS AT 31 MARCH 2025

2025 2024
Notes £ £ £ £
Fixed assets
Tangible assets 10 285 507
Current assets
Debtors 11 478,107 329,459
Cash at bank and in hand 127,668 41,519
605,775 370,978
Creditors: amounts falling due within 12
one year (356,811) (48,406)
Net current assets 248,964 322,572
Total assets less current liabilities 249,249 323,079
Income funds
Restricted funds 14 15,050 19,578
Unrestricted funds 234,199 303,501
249,249 323,079

The financial statements were approved by the board of directors and authorised for issue on 30 September 2025 and are signed on its behalf by:

Mr D Kontopidis

Trustee

Company Registration No. 05718525

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

EUROPEAN LUNG FOUNDATION

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2025

2025
Notes
£
Cash flows from operating activities
Cash generated from/(absorbed by)
operations
19
Net cash used in investing activities
Net cash used in financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2024
£
£
£
86,149
(328,596)
-
-
-
-
86,149
(328,596)
41,519
370,115
127,668
41,519

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

EUROPEAN LUNG FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

Company information

European Lung Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is 442 Glossop Road, Sheffield, South Yorkshire, S10 2PX.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 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)". The charity is a Public Benefit Entity as defined by FRS 102.

The accounts are prepared in sterling, which is the functional currency of the charity. The Charity also uses Euros as a functional currency. 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.

1.2 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.

1.3 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.

1.4 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, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

EUROPEAN LUNG FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

1.5 Resources expended

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Resources expended are recognised in the year in which they are incurred. Resources expended are allocated to headings in the statement of financial activities based on the actual purpose of the expenditure.

Charitable activities represent the direct costs incurred in the provision of the company's services, and include all support costs.

Governance costs represent costs of managing and administering the charitable company as a statutory vehicle.

Software 33% straight line

1.6 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:

Fixtures, fittings and equipment 33% / 12.5% straight line

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.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible 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).

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

EUROPEAN LUNG FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/(expenditure) for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8 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.

1.9 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.

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

EUROPEAN LUNG FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

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.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Accounts 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 payables 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.

1.10 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.

1.11 Retirement benefits

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

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

EUROPEAN LUNG FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

(Continued)

1.12 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 are included in net income/(expenditure) for the period.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. There are no judgements or estimates which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

3 Donations

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2025 2025 2025 2024 2024 2024
£ £ £ £ £ £
Donations and gifts 61,091 - 61,091 15,283 - 15,283

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

EUROPEAN LUNG FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

4 Charitable activities

2025 2024
£ £
Services provided under contract 437,028 364,683
Analysis by fund
Unrestricted funds 354,321 251,100
Restricted funds 82,707 113,583
437,028 364,683

The company received unrestricted income under a service agreement of £275,664 (2024: £92,773) from European Respiratory Society during the year.

In addition, the company received restricted grants during the year as follows:- 3TR - £3,958 (2024: £13,517); ; Dragon Project £28,174 (2024: £56,427); BetterB £nil (2024: £15,733) UNITE4TB £-37,538 (2024: £27,906); and Optima £88,112 (2024: £nil).

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

EUROPEAN LUNG FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

5 Charitable activities

2025 2024
£ £
Staff costs 381,974 377,387
Depreciation and impairment 221 11,909
Publishing costs 24,412 66,355
Media and marketing costs 71,714 86,222
Allowances and honorariums 28,766 33,185
Recruitment and training 870 7,904
Staff travel 17,039 17,507
Rent and service charges 16,152 13,996
Telephone 808 867
Computer costs 10,505 9,857
Legal and professional 34 18,474
Bank charges 1,513 1,210
Exchange rate variance (5,838) 650
Subscriptions 711 873
Insurance 4,811 7,971
Other charitable expenditure 14,157 29,734
567,849 684,101
Share of governance costs (see note 6) 4,100 3,800
571,949 687,901
Analysis by fund
Unrestricted funds 512,910 499,021
Restricted funds 59,039 188,880
571,949 687,901

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

EUROPEAN LUNG FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

6 Support costs

Support costs
Support Governance 2025 Support Governance 2024
costs costs costs costs
£ £ £ £ £ £
Audit fees - 4,100 4,100 - 3,800 3,800
- 4,100 4,100 - 3,800 3,800
Analysed between
Charitable activities - 4,100 4,100 - 3,800 3,800

Governance costs includes payments to the auditors of £4,100 (2024: £3,800) for audit fees.

7 Net movement in funds 2025 2024
£ £
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements 4,100 3,800
Depreciation of owned tangible fixed assets 221 1,029
Amortisation of intangible assets - 10,880

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

EUROPEAN LUNG FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

8 Employees

Number of employees

The average monthly number of employees during the year was:

2025 2024
Number Number
Directors 2 2
Managers 1 1
Administration 5 5
8 8
Employment costs 2025 2024
£ £
Wages and salaries 339,581 338,138
Social security costs 29,521 29,008
Other pension costs 12,872 10,241
381,974 377,387
The number of employees whose annual remuneration was £60,000 or
more were:
2025 2024
Number Number
£100,000 and above 1 1

Contributions totalling £5,195 (2024: £4,325) were made to a defined contribution pension scheme on behalf of the employee whose emoluments exceed £60,000.

9 Taxation

On the basis of these financial statements no provision has been made for corporation tax.

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

EUROPEAN LUNG FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

10 Tangible fixed assets
Fixtures, fittings
and equipment
£
Cost
At 1 April 2024 17,339
At 31 March 2025 17,339
Depreciation and impairment
At 1 April 2024 16,833
Depreciation charged in the year 221
At 31 March 2025 17,054
Carrying amount
At 31 March 2025 285
At 31 March 2024 507
11 Debtors
2025 2024
Amounts falling due within one year: £ £
Trade debtors 4,044 1,624
Amounts owed by fellow group undertakings 339,042 246,685
Other debtors 125,766 66,325
Prepayments and accrued income 9,255 14,825
478,107 329,459
12 Creditors: amounts falling due within one year
2025 2024
£ £
Other taxation and social security 9,226 15,461
Trade creditors 13,969 10,069
Amount due to parent undertaking 297,106 8,518
Amounts due to fellow group undertakings 3,882 3,882
Other creditors 4,936 2,430
Accruals and deferred income 27,692 8,046
356,811 48,406

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

EUROPEAN LUNG FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

13 Retirement benefit schemes

Defined contribution schemes

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.

The charge to profit and loss in respect of defined contribution schemes was £12,872 (2024: £10,241) and all relates to the single activity carried out by the charity. Amounts charged to restricted funds relate to the pension costs incurred for staff working on the relevant restricted funding projects.

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

EUROPEAN LUNG FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

14 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.

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Balance at Incoming Resources Transfers Balance at
1 April 2023 resources expended 1 April 2024 resources expended 31 March 2025
£ £ £ £ £ £ £ £
3TR - 13,517 (13,517) - 3,959 (10,030) 6,071 -
Dragon Project 73,117 56,427 (119,153) 10,391 28,174 (8,401) (30,164) -
DiscovAir 1,239 - (26) 1,213 - - (1,213) -
BetterB - 15,733 (15,733) - - - - -
UNITE4TB - 27,906 (27,906) - (37,538) (32,238) 69,776 -
Optima 20,519 - (12,545) 7,974 88,112 (8,370) (72,666) 15,050
94,875 113,583 (188,880) 19,578 82,707 (59,039) (28,196) 15,050

3TR is a large research project funded by the Innovative Medicines Initiative 1 (IMI2). It is the largest project in the field of immunology ever funded by IMI2 to date. It will provide important new insights and information about why a large number of patients suffering from the following seven diseases do not respond to treatment: asthma, COPD, Crohn's disease, ulcerative colitis, multiple sclerosis, systemic lupus erythematosus and rheumatoid arthritis. In this project, ELF is responsible for involving asthma and COPD patients throughout the project and also in dissemination and communication of the project to patients and the public.

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

EUROPEAN LUNG FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

14 Restricted funds

(Continued)

The Dragon Project is an IMI funded project, using artificial intelligence (AI) and machine learning to deliver a decision support system for the precise coronavirus diagnosis using CT scanning. ELF is involved in patient input and communication and dissemination. ELF hosts the website (europeanlung.org/ dragon/).

DiscovAir is a HORIZON2020 funded project that will develop a lung cell atlas. This will be a 3D reconstruction of how the cells in the lungs interact with other cells, certain medications and how the lungs in people with lung diseases are difference from those without disease. ELF is helping getting the patient and public perspective on the project and involved in communication and dissemination.

Better-B is an HORIZON2020 funded study involving international breathlessness experts from respiratory, palliative care and rehabilitative specialisms. The project will test whether an antidepressant can be repurposed to help in managing breathlessness where non-drug treatments cannot be effectively used. ELF is involved in communication and dissemination together with the ERS.

UNITE4TB is the newest project of the IMI AMR Accelerator, a public-private collaboration with the shared goal of progressing the development of new medicines to treat or prevent resistant bacterial infections. The 7-year project aims to accelerate and improve the clinical evaluation of combinations of existing and novel drugs, with the goal of developing new and highly active TB treatment regimens for drug-resistant and sensitive TB.

OPTIMA is an Innovative Medicines Initiative (IMI)-funded EU project aiming to ensure that every patient with lung, prostate and breast cancer has access to the most up-to-date individualised treatments and innovative therapies. It will do this by strengthening shared decision-making using dynamic computerinterpretable guidelines, and using AI-driven technology and tools.

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

EUROPEAN LUNG FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025

15 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 April
Incoming
Incoming		 Resources Resources Transfers Transfers At 31 March
2024 resources expended 2025
£ £ £ £ £
General funds 303,501 415,412 (512,910) 28,196 234,199
Previous year: At 1 April
Incoming		 Resources Transfers At 31 March
2023 resources expended 2024
£ £ £ £ £
General funds 536,139 266,383 (499,021) - 303,501
Analysis of net assets between funds
Unrestricted Restricted funds Total Unrestricted Restricted funds Total
funds funds
2025 2025 2025 2024 2024 2024
£ £ £ £ £ £
Fund balances at 31
March 2025 are
represented by:
Tangible assets 285 - 285 507 - 507
Current
assets/(liabilities) 233,914 15,050 248,964 302,994 19,578 322,572
234,199 15,050 249,249 303,501 19,578 323,079

16 Analysis of net assets between funds

17 Related party transactions

The ultimate controlling party is European Respiratory Society, which is based in Switzerland. It is unknown whether any individual has control over that organisation. European Respiratory Society (being the smallest and largest group of which the charitable company is a member for which group financial statements are prepared) prepares group accounts and copies can be obtained from 4 Ave Sainte-Luce, CH-1003, Lausanne, Switzerland.

18 Analysis of changes in net funds

The charity had no material debt during the year.

Docusign Envelope ID: F31CCF42-E3B4-49E7-86F0-59AA49418CCD

EUROPEAN LUNG FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2025

19 Cash generated from operations 2025 2024
£ £
Deficit for the year (73,830) (307,935)
Adjustments for:
Depreciation and impairment of tangible fixed assets 221 11,909
Movements in working capital:
(Increase) in debtors (148,647) (21,269)
Increase/(decrease) in creditors 308,405 (11,301)
Cash generated from/(absorbed by) operations 86,149 (328,596)