Servol Community Services
ser%éol
Mental Health Care in Good Hands
Report and Financial Statements
For the year ended 31 March 2025
Company Reglstratlon No. 034707521 Charity Registration No. 1125896

Servol Community Services
Report and financial statements for the year ended 31 March 2025
CONTENTS OF THE FINANCIAL STATEMENTS
Page
Report of the Trustees
Independent Audltorfs Report
16
Consolidated Statement of Flnandal Act￿ltIeS
20
Consolidated Balance Sheet
21
Charitable Company Balance Sheet
22
Consolidated Statement of Cash Flows
23
Notes to the Financlal Statements
24
Registered Office and Professional Advisers
41
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Servol Community Services
Report and financlal statements for the year ended 31 March 2025
REPORT OF THE TRUSTEES
Chair of the Board Report
l am pleased to present our annual report for 2024125, which highlights the slgnlflcant
progress Servol has made in supporting individuals severely affected by mental illness.
This year's report reflects that progress of hope, transformation, and the vltal role
community-based mental health services play In helping people rebuild their lives. Our
continued Investment in staff development, systems improvement, and servlce user
engagement underplns our commitment to high-quality, ￿SponSive care. This past year
has continued to be marked by uncertainty and growlng pressure across the mental health
sector, and in particular real risks on existing contracts not having sufficient funding to
provlde the much-needed services. Equally, for those living with severe mental illness and
for their carers the environment has remained challenging, with demand for services
Increasing and wider forms of support often limited or difficult to access. Against this
difficult backdropi I am deeply appreciative of the dedlcation and resilience shown by our
staff, whose unwavering cornmitment has enabled us to not only maintain but also
strengthen our service provision. In particular, we have focused on enhanclng the quallty
and reach of our supported housing services, ensuring that more people can access stable,
person-centred support on thelr Journey toward recovery.
Notably, the latter part of 2024125 brought new opportunities, including the launch of a
new commissioned sen11￿ in the London Borough of Sutton, a significant milestone that
signals our ongoing growth and the recognition of our impact wlthln the sector.
Additionally, the successful introduction of our first-ever Staff Awards allowed our
organisation to celebrate the indlviduals and teams who embody our values and make our
work posslble. Their sense of pride and recognitlon affirmed our belief In nurturlng a
posltlve, Inclusive culture. As we look to the future, the change In narional government
brlngs wlth it the hope of renewed focus and investment in mental health. We are
optimistic that a fresh policy directlon wlll deliver improved outcomes for people living with
mental illness, and we are committed to playing our part In shaplng that future.
On behalf of the Board of Trustees, l extend our deepest thanks to all who have supported
Servol over the past year, our staff, volunteers, partners, commissloners, and community
members. Your contributlons have been invaluable. Together, we remain focused on
delivering meaningful impact and continuing to support recoveryi Independence, and
dignity for als those we seNe.
George Branch
Board Chair
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Servol Community Services
Report and flnancial statements for the year ended 31 March 2025
REPORT OF THE TRUSTEES
Chief Executive's Report
It is with great pride that I present Servol's Annual Report for thls perlod, a year marked
by resilience, growth, and unwavering commitment to the people we serve.
A Year of Challenge and Commitment
As we reported last year the cost-of-llvlng crlsTS and cuts to public sector fundlng natlonally
contlnues to impact both our sector and the communities we serve. Despite raising
concerns and reviewing our contract flnancial envelopes with commlssloners thls dld not
result In any real meaningful uplifts to our cUr￿nt contract value. Yet, recognising the
dedlcatlon and financial pressures faced by our frontllne teams, our Trustees approved a
wage increase for staff. This decision, warmly re￿ived, was a testament to the value we
place on those who deliver our services every day.
Celebratlng Our People
In April 2024, we were thrilled to host Servol's first-ever Staff Awards Ceremony In
Birmingham, an event that was met with energy, prlde, and Joy. Trustees played an active
role as part of the judging panel, personally presenting awards to Indivldual staff and
teams whose contributions have made a remarkable impact. The day was a powerful
reminder of the dedicatlon, compassion, and skill that drive our work forward. Bulldlng on
thls success, we are exctted to announce that next yearfs ceremony will take place in
London, where we plan to make it even bigger and better.
Financlal Stablllty and Innovation
Through careful expendlture management, targeted fundraisingf and successful grant
applications, Servol not only sustained but increased income levels, resulting in a small
surplu5. Thls strong flnanclal posltlon Is essentlal enabllng us to maintain vital servI￿s,
pioneer new models of worklngi and strengthen collaborative partnerships.
Service UseTrLed Innovation
At the heart of Seniol's mission is a steadfast commltment to co-productlon with our
service users. Thls ensures their voices shape every aspect of our work.
A standout achievement this year was the launch of Phase 2 of the Healthy Eating, Healthy
Llving programme, building on the strong results of our pllot. Participants from the pllot
played a key role In shaplng the new delivery, bringing their lived experien￿ to the design
process and proudly stepping up as programme ambassadors, sharing Its benefits at
resident meetings. Healthy Eatlng, Healthy Llvlng empowers participants with practical
guldance on nutrltion, tips for eating well on a budget, and the chance to take part in
gentle, accessible exercise-helping to make healthier lifestyles achievable for all.
Growth and Expanslon
December 2024 saw a major milestone as Servol was awarded a new supported
accommodation contract In the Borough of Sutton, Surrey. Thls expansion Into a new
locality strengthens our reach, enabling us to support more individuals to achieve
independence and stability. We also maintsined strong partnerships wlth Wandsworth and
Rlchmond Local Authority Health and Social Care, while actively seeking opportunities to
expand our footprint across London and beyond. Our resldentlal servlces have sustalned
full occupancy for much of the year, despite natural fluctuations. Following the introduction
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Servol Community Services
Report and financial statements for the year ended 31 March 2025
REPORT OF THE TRUSTEES
of a new service in Sutton, we restructured our London management provision to ensure
contlnued strong leadership.
In early 2025, we launched My Path My Journeyi a groundbreaklng pilot project for SeNol
fvnded by the Mental Hea5th Provider Collalx)rative for Bsol. This innovative initiative
offers dedicated, person-centred support to Individuals living with severe mental Illness
(SMI), helping them navigate the transition from acute care with confidence. By focusing
on recovery, stability, and empowerment, the project aims to reduce the rSsk of relapse
and prevent readmission. paving the way for lasting wellbeing.
Our Bellef and Vlsion
SeNol's belief is simple but powerful: we see the potential In every person, regardless of
their history or vulnerabilities. Our vision is to deliver quality mental health support and
to be recognised as a leader In our field. This year, we have supported long-standlng
residents, some after more than 20 years with us, to move Into Independent living.
These successes embody our mlsslon and the transformative impact of our work.
Looklng Ahead
The year ahead wlll see us bullding on our achievements deepen5ng community impart,
strengthening partnerships, and exploring new opportunities for growth and innovation.
We will continue to diversify our income streams to ensure long-term sustainability, while
remaining steadfast in our focus on delivering the best possible outcomes for those we
serve.
In October 2025 we will launch the Phoenix Project which will provide specialist supported
accommodation for prison leavers with complex mental health needs, helping them
reintegrate Into the local communlty and reduce reoffending.
Acknowledgements
Our progress this year would not have been posslble without:
Our Board of Trustees, for thelr guldance and governance.
Our exceptional staff, for their dedication, creativity, and resilience.
Our servlce users, whose courage and contributions inspire us daily.
Servol faces the future with optimism, determinatlon, and the belief that together we can
continue to build lives of hope, dignlty, and opportunity.
Phillp Gayle
Chief Executive
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Servol Community Services
Report and financial statements for the year ended 31 March 2025
REPORT OF THE TRUSTEES
The Trustees submlt thelr strategic report and flnanclal ststements of Servol Communlty
Servlces for the year ended 31 March 2025. The Trustees have adopted the provlslons of
the Statement of Recommended Practice (SORP) -Accountlng and Reporting by Charities"
(FRS 102) In preparing the annual report and financial statements of the charity. The
group comprlses the parent company, Servol Community Services (the company), and Its
subsidiary undertaking Servol Trading Limlted.
Strategic direction & Business Plan Review
At our Annual Trustees, Board Away Day, the Trustees of Serrfol Community Services
undertook a comprehensive review of the organlsatlon's Strategic Business Plan. This
review provided the opportunlty to assess progress against our objectives, evaluate the
impact of our services, and ensure our strategy remalns aligned with the needs of our
Servi￿ users and the changlng extemal envlronment. Further Iteratlons of the plan wlll be
made to reflect the current financial cllmate In which we operate, ensuring that se￿01
remalns resilient, responsive, and able to seize opportunities for growth and Innovation.
Servol's Strategic Business Plan sets out our organlsational direction through 2024125. It
Identifles the priority areas where Servol can make the most slgnlflcant and lastlng
difference In the lives of vulnerable mental health service users and those who face
dlsadvantage. The plan also outlines how we will continue to strengthen our internal
capabilities, develop our workforce, and build the resources required to sustaln and expand
our servlces.
Our strategic objettives were establlshed at the outset of the plan, each designed to
maximise our impact, strengthen organlsational resilience, and deliver measurable
outcomes for those we support. Throughout thc ycar, wc havc measured our performance
against these objectives, using the results to Inform serdlce Improvements, investment
decisions, and our future dlrectlon.
Delivering Safe, Fulfillingi and Independent Lives
We are committed to enabling more adults to lead safe, fulfilling lives by dellverlng hlgh-
quality, evidence-based support services that promote wellbeingi recovery, and
Independence. Success will be measured by the positive outcomes achieved for every
person we support.
Our approach is underpinned by the Outcome Star recovery model, embedded across all
services, alongside a culture of continuous Improvement in care and support.
Our contlnuous Improvement programme for Adult Seniices will focus on:
Recovery
Deliver recovery-focused services that put each individual's journey at the centre
of all decislons.
Support service users to Ilve In the least restrictive environment possible.
Promote maximum independence, autonomyi and self-determination.
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Servol Community Services
Report and financial statements for the year ended 31 March 2025
REPORT OF THE TRUSTEES
Recrultment and Retention
Attract and retain staff who embrace our values and are motivated to deliver
excellence.
Actively respond to staff feedback to improve working conditions.
Invest In tralning, supervision, and career development opportunlties.
Enhance pay and introduce reward schemes to recognise excellence and
commitment.
Service User Involvement
Deepen engagement with our"experts by experience- to ensure their priorlties are
heard and acted upon.
Give service users a central role In servlce redeslgn and Improvement initiatives.
Service User Satisfaction
Strengthen the way we gather and respond to feedback.
Ensure senilce users, voices actively shape the future of our servlces.
Quallty
Adopt proven quality improvement methods across all senilces.
Review and refine internal audit processes to focus on quality-driven outcomes.
Achleve and maintain a Care Quality Commisslon (CQC) Good rating or higher
across all regulated services.
Ensure consistent quality standards in all non-CQC regulated Servi￿5.
Innovation
Work wlth partners to review and redesign services where needed to enhance our
offer.
Prepare proactively for the next mental health contract cycle (anticipated In
2026127).
Maximise regional partnerships to expand and diversify services for people with
Serious Mental Illness (SMI).
Dlgltal Inclusion
Ensure service users are supported to access and navigate the dlgltal world.
Provlde tools, skills, and programmes to reduce digital poverty and exclusion.
Help servlce users use technology to aC￿$S beneflts, utllitles, and wider support
networks.
The Focus of Our Work
At Servol, we believe that every individual regardless of their history or clrcumstances has
the unquestionable right to safe, decent, and well-maintained accommodation, alongside
the care and support essential for mental wellness. For those livlng with Serious Mental
Illness (SMI), these are not liixiiries; they are the foundation for r@covery, dignity, and
hope.
Our work is grounded in the voices of the people we serve. We know that the best way to
improve and innovate is to listen deeply and respectfully to those who live the reality of
mental health challenges every day. Their Insight shapes our servlces, drives our decisions,
and ensures our support remains relevant, compassionate, and life-changing.
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Servol Communlty Services
Report and financial statements for the year ended 31 March 2025
REPORT OF THE TRusfEES
We also believe that exceptional care begins with exceptional people. That Is why we invest
In our staff, equlpping them with the trainingi tools, and opportunities to grow. By
nurturlng our team, we ensure that the quality of our services remains conslstently high
and that every indivldual we support re￿iVeS care that is not only professional but
personal.
At our core, Servol's focus Is slmple but powerful: to deliver the hlghest standard of
support and care to Individuals with SMI, enabling them to1Sve with dignity, fjndependen￿,
and the belief that theSr future Is worth fighting for.
Our Two Main Goals
Servol exlsts to achieve two clear and unwaverlng goals:
Flrst, to empower adults with serious mental illness and complex needs to Ilve as
Independently, confldentlyi and fully as possible.
Second, to deliver Servi￿ of the hlghest quality and set the standard as a leader
in mental health care and support.
ublic Benefit
In setting Servol's plans and prforlties, the Trustees have been guided by the Charity
Commlssion's prlnclples on deliverlng public benefit. Every planned activity Is carefully
assessed against our strateglc objectives to ensure it directly advances our charitable
purpose.
Our core mission is to promote the safety, support, and care of individuals Ilvlng wlth
mental 111 health, particularly those with Serious Mental Illness (SMI) and complex needs.
We belleve that by delivering high-quallty, person-centred services, we not only mcct
Immediate needs but also empower our service users to rebulld their lives, restore dlgnity,
and achleve greater Independen￿.
Servol's work beneflts both the individuals we serve and the wider community. By
supporting some of the most vulnerable members of soclety to 5tabilise, recover, and
thrive, we help unlock thelr potential to contribute positively to society whlle also reducing
the social and economic impact of untreated mental 111 health.
Our commitment Is clear: to create pathways of opportunity, hope, and inclusion ensuring
every person we support Is given the chance to Ilve a Ilfe of purpose and possibility.
Financial Stability and Sustainable Growth
We are committed to safeguarding Servol's future by managlng our resources with
precision, discipline, and foresight. Every pound we recelve is an opportunity to extend
our Smpact, and we are determined to maximise its value through robust governance,
efflcient operatlons, and strategic investment.
Our approach will be built on:
strong Foundatlons - Maintaining rlgorous internal systems and processes that
provide the platform for dellvering consistently hlgh-quality services while ensuring
long-term financlal stabillty and sustainable growth.
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Servol Community Services
Report and financial statements for the year ended 31 March 2025
REPORT OF THE TRUSTEES
Efficlency Through Technology - Automating key processes and harnesslng
digltal transformation to streamllne operatlons, redu￿ manual workloads, and free
resources to focus where they are most needed.
Smarter Spendlng - Embedding a culture of cost awareness and value for money
across the organisation, ensuring every decision delivers measurable benefit. Cost
savings wlll be reinvested directly Into initlatives that increase our reach and
Improve our impact.
Environmental Responsibility
Integrating environmentally sustalnable
practices Into all aspects of our operatlons, reducing C02 emissions and
contributing to the wellbeing of the communltles we senie.
Through this disciplined and forward-looking approach, we will ensure Servol remains
flnancially strong, operationally agile, and fully equipped to meet both the challenges and
opportunitles ahead.
Flnancial revlew
During 2024-25 Servol has been able to secure new income to support its charitable
activities and deliver Its objectives In accordance with Its strateglc buslness plan. The
current publlc sector funding environment rernalns challenging and contingency plans are
in place to minimise the effect on our charitable activlties should our income be adversely
affected.
The financial staterrienis show total incoming resources of £3.7m (2024: £3.3m). The
prlnclpal source of Servol's Income Is mainly in the form of accommodation fees and care
and support fees towards the cost of the services we provide. Such fees are charged for
the provlslon of residential and supported living accommodation senilces and are pald for
by local and health authorities mainly in London and Birmingham, as well as local
authorltles in Sutton, Derby and East Sussex. Staff costs are the largest resource and such
expenditure for the organisation averages 60% - 70% of total expenditure annually.
During the year, operational income increased by £314k over the financial year ended
March 2025. Total operational expenditure also increased significantly by £208k. Net
income before gains on investment was £30k for the year (2024: net expenditure of E26k.
During the year £59k of leasehold improvements were written down due to early
terminatlon of a lease by the landlord. Total group funds carried forward were therefore
£635k (2024: £605k).
Servol's major flnanclal risks continue to come from running ser11￿S with the posslblllty
of high voids, arrears and the high usage of agency staff.
Reserves and Risk Management strategy
The Reserves Pollcy undergoes a thorough review each year. The Trustees are committed
to ensuring that Servol maintains a flnanclal reSer￿e robust enough to sustaln effective
operations, partlcularly considering the prevailing practice whereby contracting bodtes
release payments retrospectively, most often on a quarterly basis. This safeguard is
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Servol Community Services
Report and financial statements for the year ended 31 March 2025
REPORT OF THE TRUSTEES
deslgned to enable Servol to contlnue delivering its servlces even in the face of signiflcant
challenges, providlng vital breathing space to adapt strategles in response to shlftlng
clrcumstances.
The Trustees recognise the importance of careful stewardshipi ensuring reserves are
neither excesslve nor idle. Each year, the adequacy of the reserve Is evaluated against
anticlpated Income levels. Should the resenie surpass the agreed threshold, the surplus
wlll be channelled dlrertly into advancing the charity's objectives. Conversely, If reserves
fall below the level requlred to cover operatlonal costs, urgent steps and an action plan
will be taken to the finance subcommittee for approval and support to stem further
depletlon and rebuild the fund without delay.
Servol operates In an envlronment where both financial and operational rlsks are ever-
present. The Trustees actively assess these potential threats and maintain systems
deslgned to mitigate them effectlvely. The most presslng financial vulnerabllltles stem
from operatlng ServI￿S wlth high vacancy rates and sustaining long-term contracts that
requlre renegotiatlon and renewed dlalogue. As noted In our previous report, where'new,
regulatory requirements are Introduced to enhance service standards without the provislon
of additional fundlngi the strain on resources is significant. Nonetheless, Servol's exlstlng
control measures have improved significantly and are now strong and provide the Board
with a reliable, though not absolute, level of assurance against material misstatement or
loss. When emerging rlsks are identified, Servol remains ready to strengthen its
safeguards by Implementing further systems and procedures as necessary.
Unrestricted undesignated reserves
Unrestricted undesignated or'free, resen/es are those funds avallable to meet the day~to-
day needs of the organisation's work. The Trustees have decided thati given the long-term
commitments in the organisation's work, the fragillty of external fundlng for some of its
services and the uncertainty of voluntary Income and legacies, these reserves should be
held for not less than 3 months and not more than 6 months, expenditure.
At the balance sheet date, the group's 'free' reserves amounted to £192k (2024.. £107k),
equlvalent to less than one month of unrestricted expendlture. These reserves are
therefore stlll below the reseNes pollcy minimum level. The Trustees continue to follow a
strategic plan, which amongst other thlngs, seeks to diversify income streams and rebuild
'free' rese￿es.
Risk Management and Internal Controls
Overview
Over the past year, Seniol Community Services has continued to apply its comprehensive
risk managernent framework and register. This structured framework clearly delineates
the roles and responsibilities for rlsk oversight across the organisation, while establishing
a systematic methodology for the identification, assessment, mltlgatlon, monitoring, and
review of rlsks. Furthermore, It promotes a culture of continuous learning, ensurlng that
Insights gained from risk management activities are embedded Into organisational
practice.
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Servol Community Services
Report and financial statements for the year ended 31 March 2025
REPORT OF THE TRUSTEES
Governance and Oversight
The Board of Trustees retains ultimate responslbllity for the management and control of
risks across Servol. While overall accountability rests with the Board, speclflc elements of
the rlsk management process are delegated to the Finan￿ Committee, the Quality and
Safety Committee, the senior leadership team, operatlonal managers, and other key
colleagues who are in attendan￿ at the committee meetings.
These two groups work In close collaboration to maintain the integrity and effectiveness
of the corporate risk register, whlch serves as the central tool for identifying and tracking
organisational rlsks. The register is formally reviewed at meetings of both the Finance and
the Quality & Safety Committees, where key risks are examined in detail and appropriate
actions are discussed. Recommendations and findings from these committees are
subsequently presented to the Board, ensuring informed oversight and robust decision-
making
The following risks have been Ident5fled as the most significant the organlsation faces:
Risk
Actions taken to address the rlsk
Recruitment and retention
We recognlse that if we fail to have
the
competitlve
salary
and
benefits package, together with
the right culture, we may be
unable to deliver ServI￿S in a
challenging recruitment market.
We moved closer to becoming a London Llving
Wage employer; for the first time this was
achieved for staff worklng at the Sutton scheme
in Surrey. We have developed pay bands and are
working on developing a job evaluatlon
framework, making Servol more competitlve
witli salaries.
Financial Sustainability
We recognise that if we fail to
cultlvate a diverse portfollo of
income streams, supported by
robust capital resenies, we cannot
deliver
long-term
financial
stability. Our current phase of
strategic growth is designed not
only to
strengthen
Servol's
financial position, but to embed
the resilience needed to sustain
and expand our Impact well into
the future.
Our support contracts remain under significant
financial pressure, as revenue growth continues
to lag behind the escalating costs driven by
increases in the Living Wage and inflation. In
response, we have intensified our efforts on
rigorous cost control, Implementlng robust
housing management practices to mlnlmlse vold
periods, and st￿ngthenIng arrears recovery
prO￿$se$ to safeguard Income.
Health and Safety
We acknowledge that deficiencies
in health and safety systems,
processes
policies,
or
staff
awareness
can
significantly
increase the risk of serious
Incidents, accidents, and work-
related I Ilnesses.
We commlssloned an Independent review of our
health and safety at our properties, providing
valuable insights that have enabled us to
accelerate the completion of our Flre Rlsk
Assessments. In addition, we have enhanced the
capablllty of our support staff through targeted
training, equipplng them with greater knowledge
and
awareness
of health
and
safety
requirements to strengthen compllance and
redu￿ risk across the or
anisation.
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Report and flnancial statements for the year ended 31 March 2025
REPORT OF THE TRUSTEES
Risk
Actions taken to address the risk
IT Security
We recognlse that inadequate
IT
infrastructure
Increases
vulnerability to
cyberattacks,
fraud,
hackingi
and
system
failures, any of whlch could
compromlse
operational
contlnuity.
We have achieved a "Standards Met" ratlng In
our Data Security and Protectlon Toolkit
assessment and have recently secured Cyber
Essentials accreditation. Mobile phones and
computers have been upgraded to strengthen
security and performance.
The Trustees have undertaken a revlew of Servol's Organlsation's internal control
framework, assesslng the effectiveness of existlng measures and weighing the cost of
maintaining speclflc controls against the benefits they deliver. These systems are
structured to provide reasonable, though not absolute, assurance against material
mlsstatement or loss. Key elements Include:
A strategic plan and annual budget formally approved by the Trustees.
Regular monitoring by the Trustees of flnancial performance, budget VarIan￿S, and
non-financlal performance indicators.
Clear delegation of day-to-day rnanagement authority, supported by appropriate
segregation of dutles.
Legal and Organisational Structure
Servol Cornmunity Services exists to deliver high quality mental health care and support,
improvlng Ilves and building stronger communities. Our work is underplnned by a clear
legal and governance framework that ensures transparency, accountabillty, and alignment
with our charitable purpose.
Servol is registered as a charitable company Ilmlted by guarantee. It operates In
accordance with its Articles of Assoclation and is guided by the objectives and powers set
out in Its Memorandum of Association. In keeping with this structure, the liability of each
member who also serves as a Trustee is strictly limited to £1. Thls framework safeguards
the organisatlon whlle ensuring all resources are dlrected towards our mission.
To further support our charitable objectlves, Servol owns and operates Servol Trdding
Llmited, a wholly owned subsidiary. This entity generate5 income, which is reinvested into
the charity's work, helping us to extend our reach, enhance service quallty, and remaln
financially resilient. Thls structure ensures that Servol remalns both mission-driven and
well-governed, enabllng us to focus on what matters most: delivering exceptional support
to those who need it most, now and in the future.
Employees
Servol is committed to creating an outstandlng workplace where employees feel valued,
supported, and empowered to grow both professionally and personally. We actively
provlde opportunities for learning and development, ensurlng our people have the tools
and knowledge to excel In their roles. Employees are engaged in shaping our corporate
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Servol Community Services
Report and financial statements for the year ended 31 March 2025
REPORT OF THE TRUSTEES
strategies and objectives, fostering a sense of shared ownership and purpose. We also
maintain a continuous focus on evaluating how effectively we manage, support, and
involve our workforce, ensuring their voices remain ￿ntral to our organisational progress.
Engagement with employees
Over the past 12 months, Servol has strengthened its commltment to valuing colleagues
and embedding our core values within our organisational culture. We have worked to
ensure our people remaln well-informed about developments across the organlsatlon and
that their perspectives are meaningfully considered in decision-making processes. Our
employee awards programme continued to celebrate individuals whose contributions
exemplify our values in action. The results of our annual staff survey provided valuable
insight, enabllng us to recognise and ￿lebrate areas of significant progress whlle also
Identifying opportunities for further improvement. This ongoing dialogue be￿een
leadership and staff has not only enhanced transparency but has also deepened
engagement and a shared sense of p￿￿oSe.
Pensions
As a responsible employer, Servol Is commltted to supportlng the long-term financlal
securlty of our colleagues. We continue to operate a workplace pension scheme through
NEST Pension, ensuring all eligible employees have access to a rellable and regulated
means of saving for their future.
Leadership and Management
Strong leadershlp and effective governance are the foundation of Servol's success. At the
strategic helm, our Board of Trustees brings vision, accountability, and a deep commitment
to our mission. Guided by the Chalr, and comprising a further seven Trustees wlth
expertise in finance, academla, houslng, and governance and offender management, the
Board's diverse mlx of backgrounds and perspectives ensures decisions are grounded in
both professional insight and the lived realitles of the communitles we serve. Thelr
collective leadershlp has driven year-on-year growth, secured financial stability, met cost
Improvement targets, and consistently enhanced the quallty of our services.
Whlle the Board sets the strategic directlon, operatlonal excellence Is delIve￿d by our
Senior Management Team. This results-driven group is made up of the Chief Executive
Officer, Dlrector of Services, Head of Operations and Head of Finance and Corporate
Services, transforms strategy into day-to-day Impact. Brlnglng together deep sector
expertise, operational know-how, and a shared passion for making a difference, they lead
wlth clarity, agility, and purpose. RemLJneration for this team is reviewed annually and
benchmarked against comparable charities in the West Midlands, ensurlng falrness,
competitiveness, and alignment with the exceptional responsibilitles they shoulder.
A key fixture in our governan￿ calendar Is the annual Board Awayday-a dedicated forum
for in-depth reflection, innovation, and forward planning. In 2024125, the session focused
on refining the 2025/26 strategic business plan considering emerglng challenges, such as
the continued limited finances when it comes to uplifts in contracts. The Awayday enabled
the Board to set bold prlorltles: expanding and enhancing services, diversifying into new
areas of work, increasing housing stock to support growth, and generating more
unrestricted income. Together, the Board of Trustees and Senior Management Team form
Page113

Servol Community Services
Report and financial statements for the year ended 31 March 2025
REPORT OF THE TRUSTEES
a leadership partnership that Is both visionary and hands on ensurlng Servol remains
resilient, forward-lookingi and committed to making a lasting Impact on the lives of those
we serve.
Trustees
The directors of the company, for the purposes of company law, are also the Trustees and
they oversee and dlrect strategy. The following Trustees served during the year:
Trustee
G Branch
L Found
A Grant
A Howell
K Jackson
R Smlth
V Taylor
R Zitola
Role
Board Chair
Subcommittee
Quallty and Safety Commlttee
Quality and Safety Committee
Quality and Safety Committee
Quality and Safety Committee
Finance Commlttee
Finance Commlttee
Flnance Committee
Subcommlttee Chair
Subcommittee Chair
Statement of Trustees. Responsibilities
The Trustees, who also act as the charlty's directors under company law, are responsible
for preparing the Trustees, Report and flnanclal statements each year In Ilne wlth UK law
and accountlng standards. They must ensure these statements give a true and falr vlew
of Servol's finances-showing its income, how resources have been used, and its overall
financial posltlon.
To meet this duty, the Trustees:
Choose suitable accounting policies and apply them consistently.
Follow the Charities SORP and UK accounting standards.
Make careful and reasonable judgements and estimates.
Prepare the statements on a -golng COn￿rn. basis unless they belleve Servol
cannot continue operatlng.
They are also responsible for keeplng accurate financial records, safeguarding the charlty's
assets, and taklng reasonable steps to prevent and detect fraud or other irregularities.
Disclosure of Inforniation to auditor
At the time of approving thls report, each Trustee has confirmed that, to the best of their
knowledge, all relevant audit information has been shared with the charlty's audltor. They
have also confirmed that they have taken all reasonable steps to Identify such informatlon
and to ensure the auditor is fully infonned.
Audltors
A resolutlon to reappoint HB&O Ltd as the Company's extemal auditor will be proposed at
the forthcomlng Annual General Meeting.
Page114

Servol Community Services
Report and financial statements for the year ended 31 March 2025
REPORT OF THE TRUSTEES
Funds held as custodlan
At 31 March 2025 Servol held funds totalling £120,643 on behalf of service users. The
transactlons and assets assocSated with residents, funds are accounted for separately and
are not included within the financial statements of Servol. Residents, funds are held In
separate bank accounts and speclfic controls are in place to safeguard these funds.
Going concern
After making approprlate enquiries, the trustees have a reasonable expectation that Servol
has adequate resources to continue in operational existence for the foreseeable future. It
therefore continues to adopt the going concem basls In preparing the financial statements.
Appreciatlon & Thanks
We extend our heartfelt thanks to all who have stood alongside Servoli year after year, in
support of our mission. To our stakeholders, your encouragement and commitment have
been instrumental in enabling us to deliver life-changing support to those who need It
most. To our funders, we are deeply grateful for your belief in our work and your
investment In the vital ServI￿S we provide. Your tnjst empowers us to continue making a
difference.
We also wish to acknowledge the dedication of the Mental Health Teams In Blrmingham
and London, whose close partnership with our sLaff helps us to provide the highest quality
of care to our service users and communitles. It Is through this shared commltment that
we are able to achieve so much together.
As we look ahead to 2025/26, we do so with gratitude, optimism, and the confidence that,
with your contlnued support, we will build an even stronger future for the people we serve.
Approved by order of the Board of Trustees on 25th September and signed on Its behalf
by:
Phlllp Gayle
Company Secretary
Page 115

Servol Community Services
Report and financial statements for the year ended 31 March 2025
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SERVOL
COMMUNITY SERVICES
Opinion
We have audlted the flnancial statements of Servol Community Services (the 'parent
charitable company,) and its subsidiary (the 'group') for the year ended 31 March 2025
whlch comprlse the consolidated Statement of Financial Activities, the Consolidated
Balance Sheet, the Charitable Company Balance Sheet, the Consolidated Statement of
Cash Flows and notes to the financial statements, including a summary of signlflcant
accounting policies. The financial reporting framework that has been applled In their
preparation is applicable law and United Kingdom Accounting Standards, Including
Flnanclal Reporting Standard 102 The Financial Reporting Standard applicable in the UK
and Republic of Ireland (United Kingdom Generally Accepted Accounting Pract1￿).
In our opinion the financlal statements:
give a true and falr vlew of the state of the group's and parent charitable company's
affairs as at 31 March 2025 and of the group's incoming resources and application
of resources, Includlng its income and expenditure, for the year then ended;
have been properly prepared in accordance with Unlted Klngdom Generally
Accepted Accounting Practice. and
have been prepared in accordance with the requlrements of the Companles Act
2006.
Basis for opinion
We conducted our audit in accordan￿ with Intematlonal Standards on Audlting (UK) {ISAs
(UK)) and appllcable law. Our responsibilities under those standards are further described
in the auditor responsibilities for the audit of the flnanaal statements section of our report.
We are independent of the group and charitable company in accordance with the ethical
requirements that are relevant to our audit of the financial statemp_nts in the UK. includlng
the FRC'S Ethical Stsndard, and we have fulfilled our other ethical responsibilities in
accordance wlth 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 golng concern
In auditing the financial statements, we have concluded that the trustees, use of the going
concern basls of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identlfied any material uncertalntles
relatlng to events or conditions that, individually or collectively, may cast significant doubt
on the group and parent charitable company's ability to contSnue as a going concern for a
period of at least twelve months from when the flnanaal statements are authorised for
issue.
Our responsibilities and the responsibilities of the trustees with respect to golng concern
are descrlbed In the relevant sections of thls report.
other information
The other Information comprises the informatlon included in the Report of the Trustees,
other than the financial statements and our auditorfs report thereon. The trustees are
responsible for the other information. Our oplnion on the financial statements does not
cover the other informatlon and, except to the extent otherwise explicitly stated in our
report, we do not express any form of assurance conclusion thereon.
Page116

Servol Community Services
Report and financial statements for the year ended 31 March 2025
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SERVOL
COMMUNITY SERVICES
Our ￿spOnSIbIlity is to read the other Infomiation and, in doing so, consider whether the
other information is materially inconsistent with the financial statements or our knowledge
obtalned in the audit or otherwise appears to be materially misstated. If we identify such
material inconslstencies 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
mlsstatement of this other information, we are required to report that fact.
We have nothlng to report in this regard.
Oplnlons on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audlt:
the informatlon given in the Report of the Trustees, which includes the strategic
report and the directors. report for the purposes of company law, for the financial
year for whlch the financial statements are prepared Is conslstent with the flnanclal
statements. and
the strategic report and directors, report included within the Report of the Trustees
have been prepared in accordance with appllcable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and parent charltable
company and its environment obtained in the course of the audit, we have not identified
material misstatements in the Report of the Trustees.
We have nothing to report in respect of the followlng matters where the Companies Act
2006 requlres us to report to you if, in our opinlon:
adequate accounting records have not been kept by the parent charitable company,
or returns adequate for our audit have not been recelved from branches not visited
by us. or
the parent charitable company's financlal statements are not in agreement with the
accountlng records and returns. or
certaln disclosures of trustees, remuneration specified by law are not made. or
we have not ￿ceiVed all the information and explanations we require for our audlt;
or
the trustees were not entlded to take advantage of the small companles, exemption
from the requirement to prepare a Strategic Report or In preparing the Report of
the Trustees.
Responsibilities of trustees
As explained more fully in the Statement of Trustees, ResponslbllSties set out on page 14,
the trustees (who are also the directors of the parent charitable company for the purposes
of company law) are responsible for the preparation or the flnancial statements and for
belng 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 assesslng the group
and parent charitable company's ablllty to continue as a going COn￿rn, dlsclosingi as
Page | 17

Servol Community Services
Report and financial statements for the year ended 31 March 2025
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SERVOL
COMMUNITY SERVICES
applicable, matters related to going concern and uslng the going concern basis of
accounting unless the trustees either intend to Ilquldate the group or parent charitable
company or to cease operations, or have no reallstlc alternatlve but to do so.
Auditor responsibilitles for the audlt of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditorfs report that inc.ludeq oijr opinion. Reasonable assLJrance Is a hlgh 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. Mlsstatements can arlse from
fraud or error and are considered material If, Indlvldually or in the aggregate, they could
reasonably be expected to influence the economic declslons of users taken on the basis of
these financial statements.
Irregularities, including fraud, are Instances of non-compliance with laws and regulations.
We design procedures In Ilne with our responsibilities, outlined above, to detect material
mlsstatements In respect of Irregularities, including fraud. The extent to which our
procedures are capable of detectlng irregularities, including fraud is detalled below:
The audit process includes an assessment of the group and parent charitable company's
rlsk envlronment, through enquiry of and dlscusslon with management and those charged
wlth governance, Including an assessment of any key laws and regulations with which the
group and charitable company must comply In the ordinary course of its operatlons.
Addltlonally, the overall risks of irregular transattions occurring are assessed following our
observations and confirmation of the design and implementatlon of management's
controls. Whi15t we are mindful of these risks, our audit focus Is geared towards the risk
of material mlsstatement in the financial statements as a whole.
As such, our procedures cannot guarantee that all transactions have been fully compliant
with all relevant laws and regulations, includlng those regulations relating to fraud, as our
procedures are not designed to detect all Instances of non-compllance. By definition, the
risk of our detection of non-compl5an￿ Is greater where compliance with a law or
regulatlon is removed from the events and transactions reflected in the financlal
statements, The risk Is also greater regarding irregularltles due to fraud rather than error,
as fraud
involves intentlonal concealment, forgery, collusion, omlsslon
or
misrepresentation.
A further descrlptlon of our responsibilitles for the audit of the financlal statements is
located
on
the
Financial
Reportlng
Council's
website
at:
htt
www.frc.or
libra
standar
s-codes-
oli
ssurance-and-
ethics
auditors-res
onsibilities-for-the-audi
This descrlptlon fonns part of our auditor's report.
Use of our report
Thls report is made solely to the charitable company's members, as a bodyi in accordance
wlth Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken
so that we might state to the charitable company's members those matters we are
required to state to thern In an auditors, report and for no other purpose. To the fullest
extent permltted by law, we do not accept or assume responsibillty to anyone other than
Page 118

Servol Community Services
Report and financial statements for the year ended 31 March 2025
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SERVOL
COMMUNITY SERVICES
the charitable company and the charitable company's members as a bodyi for our audit
work, for this report, or for the opinions we have fonned.
Gregg Olner MPhil BA (Hons) FCA (senior Statutory Auditor)
for and on behalf of HB&O Ltd
Chartered Accountants and Statutory Auditors
Seven Stars House
I Wheler Road
Coventry
CV3 4LB
Date: 25 September 2025
Page 119

Servol Communlty Services
Report and financial statements for the year ended 31 March 2025
CONSOLIDATED STATEMENT OF FINANCIAL AcnvInES
(INCLUDING THE INCOME AND EXPENDITURE ACCOUNT)
2025
Total
funds
2024
Total
funds
Unrestricted
fvnds
Designated
funds
Restricted
funds
Note
Income and endowments
from:
Donatlons and grants
Charitable actlvltles
Investment Income
109
3,559,859
13,970
3,573,938
27.794
64,001
27,903
3,623,860
13,970
3,665,733
3,309,361
25,336
3,334,697
91.795
Expendlture on:
Charltable activities
Other expenditure
3,468,830
8,108
66,952
75.060
91,795
3,568,733
66,952
3.635.685
3,360,486
3,468.830
91,795
3,360,486
Net gains on investments
158,810
Net Income/(expenditure)
105.108
(75,060)
30.048
133.021
Transfers between fvnds
19
(20,380)
20,380
Net movement In funds
84.728
(54,680)
30,048
133,021
Reconclllatlon of funds
Total funds brought forward
Total funds carrled forward
106,782
191,510
497,847
443,167
604,629
634,677
471,608
604,629
19
Servol Community Services uses the exemption in s408 of the Companles Act 2006 from
presentlng a separate income and expendlture account for Servol Communlty Services as
a separate entity. The net Income for Servol Communlty Services alone for the year to 31
March 2025 was £114,244 (2024: net expenditure £9,168) and the total funds movement
in the year was £114,244 (2024: negative £9,168).
The notes on pages 24 to 40 form part of these flnanclal statements.
Page120

Servol Communlty Services
Report and financSal statements for the year ended 31 March 2025
CONSOLIDATED BALANCE SHEEr
2025
2024
Note
Ftxed assets
Investment property
Tangible fixed assets
io
li
415,663
27,504
443,167
395,000
102,847
497,847
Current assets
Debtors
Cash and cash equivalents
13
557,953
359,142
917,095
461,978
245,166
707,144
Creditors.. amounts falllng due within onÈ year
14
{716,418)
(581,195)
Net current assets
200,677
125,949
Total assets less current Ilabilltles
643.844
623,796
Credltors: amounts falllng due after more than one year
15
(9,167)
(19,167)
Total net assets
634,677
604,629
Funds
Unrestricted funds
Restrlcted funds
Total funds
634,677
604,629
19
634,677
604,629
These financial statements have been prepared in accordance with the provisions
applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for Issue
on 25th September 2025 and were signed on its behalf by:
Chalr of Trust00S
Georye Branch
Page121

Servol Community Services
Report and financial statements for the year ended 31 March 2025
CHARITABLE COMPANY BALANCE SHEET
2025
2024
Fixed assets
Investment property
Tangible fixed assets
Investment in subsldlarles
io
li
12
415,663
27.504
395,000
102,847
443,174
497,854
Current assets
Debtors
Cash and cash equivalents
13
604,936
147,823
752,759
346,373
245,166
591,539
Creditors: amounts falling due within one year
14
(610,082)
(607,786)
Net current assets/{Ilabllltles)
142,677
(16,247)
Total assets less current Ilabilities
585,851
481,607
Credltors: amounts falling due after more than one year
15
(9,167)
(19,167)
Total net assets
576,684
462.440
Funds
Unrestricted reserves
Restricted reserves
Total funds
576.684
462,440
19
576,684
462,440
These financial statements have been prepared in accordance with the provisions
applicable to charltable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue
on 25th September 2025 and were signed on its behalf by:
Chalr of Trustees
George Branch
Page122

Servol Community Services
Report and financial statements for the year ended 31 March 2025
CONSOLIDATED STATEMENT OF CASHFLOWS
2025
2024
Note
Cash flows from operatlng actlvlties
Net cash provided by/ (used in) operating activities
20
139,178
(7,068)
Cash flow from investlng activltles
Purchase of tanglble fixed assets
Purchase of investment property
Interest and rent from Snvestments
Net cash used in investing activities
(8,509)
(20,663)
13,970
(15.202)
(3,43 1)
(53,280)
25,336
{31,375)
Cash flow from financing artivities
Loan repayments in year
Net cash used in flnanclng actlvities
(10,000)
{io,000)
(7,872)
(7,872)
Change in cash and cash equivalents in the
reporting period
113.976
(46.315)
Cash and cash equivalents at the beginning of the
reporting period
Cash and cash equivalents at the end of the
reporting period
245,166
291,481
359,142
245,166
Page 123

Servol Community Services
Report and financial statements for the year ended 31 March 2025
NOTES TO THE FINANCIAL STATEMENTS
l. Legal status
Servol Community Services is a charitable company Ilmited by guarantee, Incorporated and
domiciled In England and Wales and registered with Companies House and the Charlty
Commlssion. The charitable company's reglstered office is 51 Pinfold Street, Blrmingharn,
England, B2 4AY and Its principal place of business is 18 Bennetts Hill, Blmiingham, England,
82 5QJ.
2. Accounting policies
Basis of accounting
The financial statements have been prepared in accordance wlth the Charities SORP (FRS 102)
Accountlng and Reporting by Charities: Statement of Recommended Practlce applicable to
charities preparing thelr accounts in accordance with the Financial Reporting Standard
applicable in the UK and Republic of Ireland (FRS 102) (effective l January 2019), the Financlal
Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies
Act 2006.
Seniol Community Services meets the definition of a publlc benefit entity under FRS 102.
Assets and Ilabllltles are initially recognlsed at historical cost or transactlon value unless
otherwise stated in the relevant accounting policy.
Going concern
The financial statemcnts have been prepared on a going concern basls as the Trustees b@Ileve
that no materlal uncertalntles exist, a view that has in part been informed by the additlonal
work generated since the year end, In Ilne with the charlty's strategic plan. The Trustees have
considered the level of funds held and the experted level of income and expenditure for the 12
months from authorising these flnanc5al statements and concluded that the charity has
adequate resources to continue operating as a going concern.
Basis of consolidation
These flnancial statements consolidate the results of the charlty and its wholly owned
subsidiaryi Servol Trading Limited for the year ended 31 March 2025.
Income
All income is recognised, net of value added tax, once the Charitable Company has entitlement
to the Income, it is probable that the income will be received and the amount of income
receivable can be measured reliably.
Grants are Included in the Statement of Flnancial Activlties on a receivable basis. The balance
of income received for specific purposes but not expended during the period is shown in the
relevant funds on the Balance sheet. Where income Is received in advance of entitlement of
receipt, its recognltlon is deferred and included in creditors as deferred Income. Where
entitlement occurs before income Is received, the Income is accrued.
Income tax recoverable In relation to investment income is recognlsed at the tlme the
investment Income is receivable.
Page | 24

Servol Community Services
Report and financial statements for the year ended 31 March 2025
NOTES TO THE FINANCIAL STATEMENTS
Other Income is recognised in the period In whlch It Is recelvable and to the extent the goods
have been provided or on completion of the servi￿.
Expenditure
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 beneflts wlll be requlred In
settlement and the amount of the obligation can be measured reliably. Expenditure is classified
by activity. The costs of each acttvity are made up of the total of dlrect costs and shared costs,
Includlng support costs involved in undertaking each activlty. Direct costs attrlbutable to a
single activity are allocated dlrectly to that actlvlty. Shared costs which contribute to more
than one activity and support costs which are not attributable to a single activity are
apportloned between those activities on a basls conslstent with the use of resources. Central
staff costs are allocated on the basis of time spent, and depreciation charges allocated on the
portlon of the asset's use.
Support costs are those costs incurred directly in support of expenditure on the objects of the
company. Governance costs are those incurred in connection with administration of the
charitable company and compliance with constitutional and statutory requlrements.
All expendtture is incluslve of Irrecoverable VAT.
Tangible fixed assets and depreciation
Tangible fixed assets costlng £1,000 or more are capitalised and recognised when future
economlc benefits are probable and the cost or value of the asset can be measured reliably.
Tanglble fixed assets are initially recognised at cost. After ￿cOgnItIon, under the cost model,
tangible fixed assets are measured at cost less accumulated depreciation and any accumulated
impairment losses. All costs incurred to brlng a tanglble fixed asset into its intended working
condition should be Included In the measurement of cost.
Depreclatlon Is charged so as to allocate the cost of tangible fixed assets less their residual
value over their estimated useful lives on the following bases: using the stra5ght-line and
reducing balance methods:
Long-term leasehold property - over the lease term
Fixtures and fittings - IO% reducing balance
Offlce equipment - 33% straight line
Investments
Fixed asset Investments are stated at cost, less impairment.
Investment property
Investment property is carried at fair value determined annually by elther external valuers or
the trustees and is derived from the current market ￿nts and investment property yields for
comparable real estate, adjusted if necessary for any differences In the nature, location or
condition of the specific asset. No depreciation is provided. Changes in fair value are recognlsed
in the Statement of Financial Activities.
Page | 25

Servol Community Services
Report and flnancial statements for the year ended 31 March 2025
NOTES TO THE FINANCIAL sfATEMENTS
Fund accounting
General funds can be used In accordan￿ wlth the charitable objectives at the discretion of the
trustees In furtherance of the general objectives of the Charltable Company and whlch have
not been designated for other purposes.
Restrlcted funds can only be used for particular restricted purposes within the objects of the
charity. Restrictlons arlse when speclfled by the donor or when funds are raised for partlcular
restricted purposes.
Designated funds comprise unrestricted funds that have been set aside by the trustees for
partlcular purposes.
Pensions
The group and charitable company operate a defined contribution pension scheme.
Contributions payable to the group's and charitable company's penslon scheme are charged to
the Statement of Financial Activities in the perlod to which they relate.
Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount
offered. Prepayments are valued at the amount prepaid net of any trade dlscounts due.
Cash at bank and in hand
Cash at bank and in hand includes cash and short-temi hlghly Ilquid Investments with a short
maturity of three months or less from the date of acquisition or opening of the deposlt or
simllar account.
Liabilities
Llabilltles are recognised when there Is an obllgatlon at the Balance sheet date as a result of a
past event, it Is probable that a transfer of economSc benefit will be required in settlement, and
the amount of settlement can be estimated reliably.
Liabilities are recognlsed at the amount that the Charltable Company anticipates it will pay to
settle the debt or the amount it has received as advanced payments for the goods or servlces
it must provide.
Financial instruments
The group and charitable company only have financlal assets and financlal Ilabllitles of a kind
that qualify as baslc financial instruments. Basic financlal instruments are initially recognised
at transactlon value and subsequently measured at their settlernent value wlth the exceptlon
of bank loans whlch are subsequently measured at amortlsed cost using the effective interest
method.
Operating leases
Beneflts received and re￿1vable as an incentive to sign an operating lease are recognised on
a straight-line basis over the lease term, unless another systematic basis is representative of
the tlme pattern of the lessee's beneflt from the use of the leased asset.
Page126

Servol Community Services
Report and financial statements for the year ended 31 March 2025
NOTES TO THE FINANCIAL STATEMENTS
Rentals payable on operating leases are charged on a straight-line basis over the lease term.
Tax
The charity Is considered to pass the tests set out in Paragraph I Schedule 6 Finance Act 2010
and therefore it meets the deflnition of a charitable company for UK corporation tax purposes.
As such, It does not have liability to corporation tax in the course of its normal charitable
activities.
3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF
ESTIMATION UNCERTAINTY
Estimates and judgements are contlnually evaluated and are based on hlstorlcal experience
and other factors, Including expectations of future events that are believed to be reasonable
under the circumstances.
Critical accounting estimates and assumptions:
The group and charltable company make estSmates and assumptions concerning the future.
The resulting accounting estimates and assumptions will, by deflnltlon, seldom equal the
related actual results. The estlmates and judgements that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the next flnanclal
year are discussed below.
Critical areas of judgement:
Investment property
The financial statements include an investment property held at valuation, whlch Is a slgnlficant
estimate. In order to arrlve at a reliable estimate, the trustees may make use of professional
valuers. However, significant changes to the assumptions underlying the valuer's or the
trustees, calculations, or slgnificant changes in market conditions could result in significant
changes to the carrying value of investment property over the next financial year.
Depreclation
Depreciation Is charged against assets so as to write them down to thelr residual value at the
end of their useful Ilves. At each reporting date the group and charitable company assesses
whether there is any indication of impairment or deviation from the expected useful Ilves. If
such indication exists, the recoverable amount of the asset is determined to be the higher of
Its fair value less costs to sell and its value in use, An impairment loss Is recognised where the
carrying amount exceeds the recoverable amount.
Provlsion for doubtful debts
The group and charitable company provides against doubtful debts based on the ageing and
nature of the debts and the rlsk proflle of those debts. Thls Is a change from last year where
the provlsion was calculated on a case-by-case basis.
Page127

Servol Community Services
Report and financial statements for the year ended 31 March 2025
NOTES TO THE FINANCIAL STATEMENTS
4. Comparatives for the consolidated statement of financial
activities
2024
Total
funds
Unrestricted
fiJnds
Designated
funds
Restricted
funds
Note
Income and endowments
from:
Donations
Charitable activities
Investment income
2,587,039
25,336
2,61Z,375
31,107
2,618,146
25,336
2.734,234
31.107
Expenditure on:
harltable actlvities
Other expenditure
2.756,886
23.098
31,476
2,811,460
2,756,886
23,098
31,476
2,811,460
Net gains on Investments
158,810
158,810
Net income/(eX￿nd1tUrfj)
(144.511)
135,712
(369)
(9,168)
Transfers between funds
(56,711)
56,711
Net movement In funds
{201,222)
192,423
(369)
(9.168)
Reconclliatlon of funds
Total funds brought forward
Total funds carried forward
165.815
106.782
305,424
497.847
369
471,608
604,629
Page 128

Servol Communlty ServSces
Report and financial statements for the year ended 31 March 2025
NOTES TO THE FINANCIAL STATEMENTS
5. Analysis of income
2025
Total
funds
Unrestricted
funds
Deslgnated
funds
Restricted
funds
Donations
Gifts and donations
109
109
27,794
27,794
27,903
27,903
Charitable artivities
Community and residential care:
Local Authoritles
CCG/ICB
other
2.137.865
1.288,604
133,390
3,559,859
2,137,865
1,352,605
133,390
3,623,860
64,001
64,001
Investment income
Bank interest
Investment property rent
1,989
11,981
13.970
1,989
11,981
13,970
Total income
3.573,938
91,795
3,665,733
2024
Total
funds
Unrestricted
funds
Designated
funds
Restrltted
funds
Donations
Gifts and donations
Charitable Activities
Community and residential care:
Local Authorities
- CCG/ICB
- Grants
2,727,434
550,645
175
3,278,254
2,727,434
550,645
31,282
3,309,361
31,107
31.107
Investment Incame
Bank interest
Investment property rent
Other
1,676
13,052
10,608
25.336
1,676
13,052
10,608
25,336
Total incorne
3.303.590
31,107
3,334,697
Page129

Servol Communlty Services
Report and financlal statements for the year ended 31 March 2025
NOTES TO THE FINANCIAL sfATEMENTS
6. Expenditure on charitable activities
Dlrect
costs
Support
costs
2025
Community and residential care
3.430,994
3,430,994
204,691
204,691
3,635,685
3,635.685
Direct
Costs
Support
costs
2024
Community and resldential care
3,243,721
3.243,721
116,765
116.765
3,360,486
3,360,486
7. Support costs
Community
and
resldentlal
care
2025
Management
Governance
173,420
31,271
204,691
173,420
31,271
204,691
Community
and
resldentlal
¢are
2024
Management
Governance
103,497
13,268
116,765
103,497
13,268
116,765
Page130

Servol Community Services
Report and financial statements for the year ended 31 March 2025
NOTES TO THE FINANCIAL sfATEMENTS
8. Net income
Net Income Is stated after charging:
Group and CharitJble
Company
2025
2024
Depreciation of tangible fixed assets
operating lease rentals
land and bulldings
vehicles and other equipment
75,060
23,098
107,553
1,670
95,493
Auditors, remuneratlon
audit fee
tax admlnlstratlon
other services
10,000
3,000
1,500
9,000
9. Employees and Trustees
Average monthly number of employees during the year:
Group and Charitable
Company
2025
No.
2024
No.
Care and support
Administration
82
88
89
96
Employee costs
Group and Charitable
Cornpany
2025
2024
Wages and salaries
Social securlty costs
Penslon costs
2,156,924
189,880
45,015
391,819
2,112,843
173,293
39,621
2,325,757
Page 131

Servol Community Servlces
Report and financial statements for the year ended 31 March 2025
NOTES TO THE FINANCIAL STATEMENTS
Senior management team
The full-time equivalent number of staff who recelved remuneration (excludlng employer
pension contrlbutlons) of £60,000 or more (excluding company dlrectors and includlng the
senior management team) was as ft>llows:
2025
No.
2024
No.
£60,000 to £70,000
The aggregate remuneration of the Senior Management Team, includlng pension contributlons,
amounted to £276,367 (2024: £302,846).
Durlng the year, In accordance with the provisions of the Charlty's articles of assoclatlon, five
(2024: flve) of the Trustees received remuneration for their ServI￿S to the organisation and
attendance at board meetlngs. One Trustee (2024: one) was reimbursed office expenses during
the year totalling £233 (2024: £161).
Name
Remunerdtlon type
2025
2024
G Branch
V Taylor
A Grant
K Jackson
A Howell
Board remuneration
Board remuneration
Board remuneratlon
Board remuneration
Board remuneration
4,375
2,500
2,500
2,500
2,500
14,375
3,500
2,500
2,500
2,500
1,250
12,250
10.
Investment property
Group and charitable company
Fair value
At l April 2024
Addltlons
395,000
20,663
415.663
At 31 March 2025
The property was valued by the Board of Trustees on 31 March 2025.
Page 132

Servol Community Services
Report and financlal statements for the year ended 31 March 2025
NOTES TO THE FINANCIAL STATEMENTS
11.
Tangible fixed assets
Group and charitable company
Fixtures
and
flttlngs
Computer
systems
and
equlpment
Leasehold
buildlngs
Total
Cost
At l April 2024
Addltlons
Disposals
At 31 March 2025
55,975
82,872
5.769
196,783
2,740
(199,523)
335,630
8,509
(208,315)
135,824
(8,792)
47,183
88.641
Depreciation
At l April 2024
Charged in year
Disposals
At 31 March 2025
19,061
4,365
81,151
3,743
132,571
66,952
{199,523)
232,783
75,060
(199,523)
108,320
23.426
84.894
Net book value
At 31 March 2025
23,757
3,747
27,504
At 31 March 2024
36,914
1,721
64,212
102,847
12.
Investments in subsidiaries
Charitable company
2025
2024
Cost and net book value
At 31 March 2025 the Charity held more than 200h of the allotted share capitsl of the followlng
undertaklng:
Country of
Incorporatlon
Class of
share
¢apital
Proportlon
owned
Nature of
business
Servol Trading ￿Mited
UK
Ordlnary
loo%
Residentlal care
servlces
Servol Trading Limited's registered company number is 14287388. For the period to 31 March
2025 it had gross income of £713,019 (2024.. £691,215), expenditure of £657,215 (2024:
£549,027) and profit of £55,804 (2024: £142,188). At 31 March 2025 the company had assets
Page133

Servol Community Services
Report and financial statements for the year ended 31 March 2025
NOTES TO THE FINANCIAL STATEMENTS
of £236,165 (2024: £242,250), liabilities of £178,166 (2024: £100,055) and capltal and
reserves of £57,999 (2024: £142,195).
13.
Debtors
Group
2025
Charitable Company
2025
2024
2024
Due wlthln one year
Trade debtors
Less.. Provislon for bad and doubtful debts
Amount due from Subsidiary undertaking
Other debtors
Prepayments and accrued income
479,729
(36.456)
486,205
(80,744)
454,881
(36,456)
71.831
370,600
(80,744)
20,450
36,067
461,978
20,450
36,067
346,373
114,680
557.953
114,680
604,936
14.
Creditors: amounts falling due within one year
Group
2025
Charitable Company
2025
2024
2024
Debt (note 17}
Trade credltors
Amount due to subsidiary undertaklng
Corporatlon tax
Other taxation and social security
other creditors
Accruals and deferred income
10,000
109,718
10,000
148.830
10,000
IOD,830
10,000
148,830
126,645
513
513
148,188
74,826
373,173
716.418
148,635
57,fA6
215,571
581.195
51,253
74,826
373,173
610.082
49,094
57,646
215,571
607,786
15.
Creditors: amounts falling due after more than one year
Group
20Z5
Charltable Companv
2025
2024
2024
Debt (note 17)
9,167
9,167
19,167
19,167
9,167
9.167
19,167
19,167
Page134

Servol Communlty Services
Report and flnanclal statements for the year ended 31 March 2025
NOTES TO THE FINANCIAL sfATEMENTS
16.
Deferred income
2025
2024
At l April
Resources deferred during the year
Released to income during the year
At 31 March
93,997
263,442
(93,997)
263.442
88,207
93,997
(88,207)
93.997
Deferred income represents service user income billed in advance.
17.
Debt analysis
Borrowings
Group and Charitable
Company
2025
2024
Due wlthin one year
ank loans
10.000
10,000
Due between one and two years
Bank Loans
9,167
10,000
Due between two and five years
Bank Loans
9,167
Total borrowings
19,167
29,167
The charitable company received a £50,000 boun￿ back loan In February 2021. The loan is
repayable in equal instalments beginning in March 2022. The interest rate is flxed at 2.5% over
the term of the loan wlth the first 12 months of interest being paid by the UK Government.
18.
Pensions
The group and charitable company operate a defined contribution pension scheme. The assets
of the scheme are held separately from those of the group and charitable company in an
independently administered fund. The pension cost charge represents contributions payable by
the group and charltable company to the fund and amounted to £45,015 (2024: £39,621).
Contributions totalling £20,751 (2024: £8,878) were payable to the fund at the balance sheet
date and are included in creditors
Page135

Servol Community Services
Report and financial statements for the year ended 31 March 2025
NOTES TO THE FINANCIAL STATEMENTS
19.
Movement in funds
Group
At l Aprll
2024
Income
Expendlture
Transfers
Galns/
(losses)
At31
March
2025
Unrestricted
fund$
General fund
Deslgnated fund
106,782
497,847
604.629
3,573,938
(3,468,830)
{75,060}
(3,543.890)
(20,380)
20,380
191,510
443,167
634,677
3,573,938
Restrirted
funds
Project funds
91,795
91.795
(91,795)
(91,795)
Total fund$
604.629
3,665,733
(3,635,685)
634,677
The purpose of the designated fund Is to reflect the value of fixed assets at the balance sheet
date which represents reserves which are not cash backed.
At l April
2023
Income
Expendlture
Transfers
Gains/
(losses)
At31
March
2024
Unrestricted
funds
General fund
Designated fund
165,815
305,424
471,239
3.303,590
(3,305,912)
(23,098)
(3.329,010)
(56,711)
56,711
106,782
497.847
604,629
158,810
158,810
3.303.590
Restrfcted
funds
Project funds
369
369
31,107
31.107
(31,476)
(31.476)
Total funds
471.608
3.334.097
(3,360.480)
158,810
604,629
Page | 36

Servol Community Services
Report and financial statements for the year ended 31 March 2025
NOTES TO THE FINANCIAL sfATEMENTS
Analysis of assets and liabilities representing funds
Unrestricted
Restricted
Total
Tanglble fixed assets
Investments
27,$04
415,663
917,095
(725,585)
634,677
27,504
415,663
917,095
{725,585)
634,677
Current assets
Llabilltles
At 31 March 2025
Unrestrlcted
Restrlcted
Total
Tanglble flxed assets
Investments
Current assets
Liabilities
At 31 March 2024
102,847
395,01)0
707,144
(600,362)
604,629
102,847
395,000
707,144
(600,362)
604,629
Charitable company
At l April
2024
Income
ExPendI￿re
Transfers
Galns/
(losses)
At31
March
2025
Unrestricted
funds
General fund
Designated fund
(35,407)
497,847
462,440
3,507,172
(3,317,868)
{75,060)
{3,392,928)
(20,380)
20,380
133,517
443,167
576,684
3,507,172
Restrl¢ted
funds
Project funds
91,795
91.795
(91,795)
(91.795)
Total funds
462.440
3.598.967
{3.484.723)
576,684
The purpose of the designated fund is to reflect the value of fixed assets at the balance sheot
date which represents reserves which are not cash backed.
Page 137

Servol Community Services
Report and financial statements for the year ended 31 March 2025
NOTES TO THE FINANCIAL STATEMENTS
At l April
2023
Income
Expenditure
Transfers
Galns/
(losses)
At31
March
2024
Unrestrlcted
funds
General fund
Designated fund
165,815
305,424
471,239
2,588,577
(2,733,088)
(23,098)
(2.756.186)
(56,711)
56.711
(35,407)
497,847
462,440
158,810
158,810
2,588,577
Restrfcted
funds
Project funds
369
369
31,107
31.107
(31,476)
(31,476)
Total fund5
471.608
619,684
(2,787,662)
158,810
462,440
Analysis of assets and liabilities representing funds
Unragtrlcted
Restricted
Total
Tangible fixed assets
Investments
Current assets
Llabllltles
At 31 March 2025
27,504
415.670
752,759
(619,249)
576,684
27,504
415,670
752,759
(619,249)
576,684
Unrestricted
Restrfcted
Total
Tanglble fixed assets
Investrnents
102,847
395,007
591,539
{626,953)
462.440
102,847
395,007
591,539
(626,953)
462,440
Current assets
Liabilitie5
At 31 March 2024
Page138

Servol Community Services
Report and financial statements for the year ended 31 March 2025
NOTES TO THE FINANCIAL STATEMENTS
20.
Cash flow from operating activities
2025
2024
Net income for the reporting period
30,048
133.021
Adjustments for:
Depreclation of tangible fixed assets
Other adjustment to tangible fixed assets
Galns on investments
Interest and rent from investments
Increase in debtors
Increase in creditors
75,060
8,792
23,098
{158,810)
(25,336)
(163,294)
184,253
(13,970)
(95,975)
135,223
Net cosh provided by/(used in) operations
139,178
(7,068)
Analysis of changes in net funds
At l April
2024
Cash Flow
Non cash
changes
At 31 March
2025
Cash and Cash Equivalents
Cash at bank and in hand
245,166
245,166
113,976
113,976
359,142
359,142
Borrowlngs
Due wlthin l year
Due after l year
(10,000)
(19,167)
(29.167)
10.000
{io,000)
10,000
(10,000)
(9,167)
(19,167)
10,000
Net cash
215,999
123,976
339,975
Page139

Servol Community Services
Report and financial statements for the year ended 31 March 2025
NOTES TO THE FINANCIAL STATEMENTS
21.
Operating lease commitments
The charitable company and group's future mlnlmum operatlng lease payments are as follows:
Group and Charitable Company
Bulldlngs
other
2025
2025
2024
2024
Within one year
Between one and five years
58,125
79,301
137,426
44,044
137,426
181,470
6.680
11,691
18,371
22.
Related parties
P Gayle, CEO of the charlty, Is also Chair of Blrmlngham and Sollhull Mental Health Foundation
Trust (BSmH￿). As a charity, Servol Community Services in turn has a contract wlth BSmH￿.
BSMHFf work in partnership with The Integrated Care Board (ICB) as part of the Birmingham
and Sollhull Integrated ca￿ System (ICS), whlch brlngs together the local NHS, councils and
the voluntary, community and faith sector to achieve better outcomes for citlzens across the
area. Together, all of the ICS'S partner organisations work In collaboration, building further on
what has been achieved through integrated working so far.
The value of the contract to dellver servlces was £458,617 in 2025 (2024: £551,202).
Other than the transartions above and the trustee related transactlons as shown in note 9,
there were no other related party transactlons for the year ended 31 March 2025.
Page140

Servol Community Services
Report and financial Statements for the year ended 31 March 2025
Registered Office
51 Pinfold Street
Blrmingham
82 4AY
Auditors
HB&O Ltd
Chartered Accountants and Statutory Auditors
Seven Stars House
I Wheler Road
Coventry
CV3 4LB
Bankers
Barclays Bank PIC
351-359 Soho Road
Birmingham
B21 9SE
Page141