# **FoodCycle Annual Report and Accounts 2025** For the year ended 31 December 2025 ## **Table of Contents** |**Introduction**|3| |---|---| |**Message from Chair of Trustees and CEO**|6| |**Reference and Administrative details**|8| |**Impact & Activities - At a Glance**|9| |**Achieving our Aims**|10| |**Fundraising**|18| |**Our People and Culture**|20| |**Looking ahead**|22| |**Financial Review**|23| |**Principal Risk and Uncertainties**|24| |**Reserves Policy and Going Concern**|26| |**Structure, Governance and Management**|27| |**Statement of Responsibilities of Trustees**|30| |**Auditor**|31| |**Independent Auditor’s Report**|32| |**Statement of Financial Activities**|36| |**Balance Sheet**|37| |**Statement of Cash Flows**|38| |**Notes to Financial Statements**|39| ## **Introduction** The Trustees present their report and financial statements for the year ended 31 December 2025. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102. The company is registered as a charitable company limited by guarantee and was set up by a Memorandum and Articles of Association dated 2 December 2009. The Trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting year. The Trustees report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the Trustees ensure the charity's aims, objectives and activities remain focused on its stated purposes. 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 its future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives that have been set. The objects of the charity as set out in our governing document are: - The relief of poverty and the preservation and promotion of good nutrition, good health and social improvement among people who are suffering from social, economic or emotional distress. - The advancement of the education of the public in reclamation of waste food and preparing healthy food. - The promotion and enhancement of human health through providing information and advice in relation to healthy eating and nutrition. - The conservation, protection and improvement of the environment for the public benefit by the promotion of reduction of food waste, use of recycled food products and the use of surplus food. - Such other objects, as shall be exclusively charitable by the law of England and Wales, as the Trustees shall decide. FoodCycle Annual Report and Accounts 2025 3 ## **Nourishing Communities Together** ## **Our purpose** To nourish communities with good food and conversation, through the power of community dining. ## **Our mission** To bring people together through community dining. To stop loneliness and hunger, food poverty and food waste. ## **What we do** FoodCycle community meals bring people together for good food and conversation. We serve up free, wholesome meals made from food that would have gone to waste. Our meals are prepared by volunteers and open to everyone. But FoodCycle is about more than food – we create a cycle of positive change. Reducing food waste. Tackling loneliness. Supporting mental health. Encouraging healthy eating and sustainable living. ## **Our Values** We are Kind. We are Inspiring. We are Uniting. We are Impactful. ## **Our Aims** **Connect Communities** Help strengthen and build resilient communities by bringing people together to share healthy, delicious meals. **Support mental health and wellbeing and reduce lonliness** Enhance the health and mental wellbeing of all by creating welcoming spaces for people from all backgrounds and walks of life to have conversations together. **Reduce hunger** Improve nutrition and access to food by providing free and nutritious meals, leading to greater food knowledge and positive changes in behaviour. P **romote sustainability** Change attitudes to food and society’s impact on the environment by cooking vegetarian meals, with surplus ingredients and championing sustainable food choices. **Inspire change** Getting more people to recognise the importance of community dining by sharing and reporting on their impact alongside listening to, and sharing, the voices of our guests. FoodCycle Annual Report and Accounts 2025 4 ## **Why is our work important?** Across the UK, too many people are facing hunger, loneliness and exclusion. Meanwhile 14.2 million people in the UK (21%) are in poverty. Of these, 7.9 million are working-age adults, 4.5 million are children and 1.9 million are pensioners (Joseph Rowntree Foundation, 2026). It costs £63 per person a week to eat a healthy diet (The Food Foundation, 2025). Yet, 78% of FoodCycle guests have less than £35 a week to spend on food. Alongside this, loneliness has become a quiet crisis: 1 in 4 adults in the UK (24%) feel lonely ‘often, always or some of the time’ (ONS, 2025), and two-thirds of FoodCycle guests usually eat alone when not at FoodCycle. Food poverty, social isolation and poor mental and physical health don’t exist in silos, they reinforce one another, weakening communities and leaving people feeling invisible. Over half (53%) of low-income households said the cost-of-living crisis had very or somewhat negative impacts on their mental health, 43% reported the same for physical health (Joseph Rowntree Foundation, 2026). Food insecurity and food price are increasingly linked to the climate crisis and sustainability yet every year 10.2 million tonnes of food are still wasted in the UK (WRAP, 2025). ## **Why we are needed** Results from our annual guest survey show the challenges our guests face and why FoodCycle is so important to them. ## **Cooking equipment:** 30% don’t have a fridge 25% don’t have a kettle 54% don’t have a hob ## **Finances:** 67% can’t afford the food they need 11% have borrowed money or gone into debt to buy food ## **Mental Health:** 67% eat meals alone, aside from coming to FoodCycle 74% feel lonely FoodCycle Annual Report and Accounts 2025 5 ## **Message from the Chair of Trustees** This year has been one of both reflection and progress. Against a backdrop of economic uncertainty and increasing social polarisation across the UK, the importance of FoodCycle’s work has never been clearer. By bringing people together to share meals, conversation and connection, FoodCycle continues to play a vital role in strengthening communities across the country. It has also been a year of consolidation and focus which resulted in implementing a restructure to ensure that we are in a position to best meet our guests’ needs. We recruited three new Trustees to the Board and appointed Frances Le Grys as our new Vice Chair. The organisation has made strong progress against its three-year strategy, with clear priorities to: - Be recognised as leaders in community dining Strengthen our sustainability Focus on people-centred growth - Support more families and children The achievements highlighted in this report reflect not only growth in reach, but also a deepening of impact. FoodCycle’s ability to adapt, refine, and remain mission-focused is testament to the strength of its leadership, staff, volunteers, and supporters. On behalf of the Board, I would like to thank everyone who contributes to FoodCycle’s success. Your dedication ensures the charity continues to deliver meaningful impact in communities nationwide. ## **Mary Jennings, Chair of Trustees** FoodCycle Annual Report and Accounts 2025 6 ## **Message from the CEO** This year encouraged me to take stock and reflect. It has been a year of change, with some projects closing and staff structure changing owing to a difficult funding landscape but also a period of innovation and growth too. One thing that hasn’t changed is the integral role community dining plays in supporting our communities We expanded our schools programme to reach more locations and support families most in need, continued to serve over 3,500 guests each week with delicious, nutritious meals, and strengthened our brand to better communicate our purpose. I’m proud that this work has been recognised through industry awards this year too. Together, we served a record-breaking 880,000 meals this year and reached 15% more guests than our original targets. But it’s not just about the numbers. At its heart, FoodCycle is about people. It’s our thousands of guests, our base of over 8,500 incredible volunteers, alongside our Trustees and staff, who make FoodCycle what it is today. We simply couldn’t deliver our work without their warmth, creativity, and care. Every plate of food served, every cup of tea shared, and every welcoming conversation helps to build connection and hope. That’s what makes FoodCycle such an important community asset across the UK. After almost 10 years I will be stepping away from the organisation and welcoming Mark Game as our new CEO who is joining us in April 2026. I am immensely proud of everything we’ve achieved together and excited for what lies ahead under his leadership. Together, we’re nourishing communities. ## **Sophie Tebbetts, CEO** FoodCycle Annual Report and Accounts 2025 7 Reference and Administrative Details Charity Number & Country of Registration 1134425 England and Wales Company Number Country of incorporation Registered Office 07101349 United Kingdom 82 Tanner Street, London, SEI 3GN Board of Trustees Trustees, who are also directors under company law, who serrfed during the year and up to the date of this report were as follows: Ms. Mary Jennings MBE Chair Chair and Vice Chair Ms. Frances Le Grys Vice Chair {QPFoSnled vice chalr 03111/2025) Treasurer Mr. David West Trustees Ms. Kalyani Gupta Ms. Vibhuti Patel {QPF¢)Snled 28104/2025) Mr. Mathew Bushbv Ms. Clare Donald (awlmed 28104/2025) Ms. Samantha **Mitigation**
1
Guests harmed either
through food safety/health
and safety/Safeguarding
incident
Strong policies and procedures externally checked.
Training in place throughout the whole
organisation. Risk assessment of venues carried
out. Monthly Safeguarding meetings ensure teams
continuously work to improve this area.
2
Food surplus reducing
We work hard to manage relationships with
retailers, and third-party surplus food charities. We
sit on network groups of WRAP redistribution
network and Excess group to ensure we are ahead
of trends in the surplus food landscape.
3
Income / donations
reducing so that we cannot
achieve strategic goals
Full implementation of approved reserves policy to
facilitate Senior Management Team (SMT), Audit
and Risk Committee (ARC) and the Board oversight.
Review of financial viability on a monthly (SMT) and
quarterly (ARC/Board) basis, together with the
monthly Management Accounts containing key
metrics, like Reserve Cover and Unrestricted
Reserve levels. Monthly Finance & Fundraising
meetings to cover income cashflow and forecasts.
Fundraising and Trading Committee reviews
income pipeline and forecasts.
4
Virus and Malware on
systems and cyber security
policy not being robust
enough
Worked with IT specialist to ensure antivirus and
malware is in place on all machines and only
scanned documents can be opened. All our
systems are cloud-based with multi-factor
authentication. Worked with Cyber security charity
to update whole policy in 2025 which includes
annual refresher training for staff.
5
Increased costs, especially
food and venue, due
primarily to inflation, which
cannot be covered by way
of increased donations
Break-even budget, strategic income strategy, cost
forecasting and modelling, working capital
management, monthly management accounts and
implemented and fully operational reserves policy
with ARC oversight and input. Fundraising focus on
securing unrestricted income where possible to
help any shortfall
**Our principal risks are:**|**Our principal risks are:**|**Our principal risks are:**|**Our principal risks are:**|**Our principal risks are:**| |---|---|---|---|---| |||**Risk Description**|**Mitigation**|| ||1|Guests harmed either
through food safety/health
and safety/Safeguarding
incident|Strong policies and procedures externally checked.
Training in place throughout the whole
organisation. Risk assessment of venues carried
out. Monthly Safeguarding meetings ensure teams
continuously work to improve this area.|| ||2|Food surplus reducing|We work hard to manage relationships with
retailers, and third-party surplus food charities. We
sit on network groups of WRAP redistribution
network and Excess group to ensure we are ahead
of trends in the surplus food landscape.|| ||3|Income / donations
reducing so that we cannot
achieve strategic goals|Full implementation of approved reserves policy to
facilitate Senior Management Team (SMT), Audit
and Risk Committee (ARC) and the Board oversight.
Review of financial viability on a monthly (SMT) and
quarterly (ARC/Board) basis, together with the
monthly Management Accounts containing key
metrics, like Reserve Cover and Unrestricted
Reserve levels. Monthly Finance & Fundraising
meetings to cover income cashflow and forecasts.
Fundraising and Trading Committee reviews
income pipeline and forecasts.|| ||4|Virus and Malware on
systems and cyber security
policy not being robust
enough|Worked with IT specialist to ensure antivirus and
malware is in place on all machines and only
scanned documents can be opened. All our
systems are cloud-based with multi-factor
authentication. Worked with Cyber security charity
to update whole policy in 2025 which includes
annual refresher training for staff.|| ||5|Increased costs, especially
food and venue, due
primarily to inflation, which
cannot be covered by way
of increased donations|Break-even budget, strategic income strategy, cost
forecasting and modelling, working capital
management, monthly management accounts and
implemented and fully operational reserves policy
with ARC oversight and input. Fundraising focus on
securing unrestricted income where possible to
help any shortfall|| FoodCycle Annual Report and Accounts 2025 25 ## **Reserves policy and going concern** The Trustees maintain a reserves policy to ensure FoodCycle can continue to operate through periods of financial uncertainty and meet unavoidable obligations should the charity need to scale down or cease activities in an orderly way. Free reserves represent unrestricted funds available for general use after taking account of funds tied up in tangible fixed assets and any Trustee designations. The Trustees assess the minimum level of free reserves required annually, based on the charity’s committed expenditure requirement and overall risk profile. At 31 December 2025, free reserves were £613,172 compared to a minimum requirement of £365,788, calculated as the financial obligations FoodCycle would need to meet if operations were to cease. Accordingly, the Trustees consider this position appropriate as it mitigates the risk of the charity meeting its financial obligations in times of income volatility. In addition, liquidity is monitored through operational cash cover. At 31 December 2025, cash and short-term deposits totalled £836,404, equivalent to 4.4 months of forecast cash expenditure. Accordingly, the Trustees deem there to be no material financial uncertainty for 2025. FoodCycle Annual Report and Accounts 2025 26 ## **Structure, governance and management** The organisation is a charitable company limited by guarantee, incorporated on 2 December 2009 and registered as a charity on 2 December 2009. The company was established under a memorandum of association, which established the objects and powers of the charitable company and is governed by its articles of association. ## **Board effectiveness** The governance of the charity is overseen by a Board of Trustees (Board). The Trustees are recruited to fill specific skill sets identified by the Board as being required to ensure the effective management of the organisation. The current skill sets are organisational strategy, financial management, legal, risk management, operations, research, diversity and charity. The Board met five times during the year, had four quarterly meetings, and a strategic planning and board effectiveness meeting which took place in January 2025. There are annual business plans that move the organisation towards its vision. These yearly business plans are created using the following process: the Board sets out the parameters within which it wishes the organisation to create the annual business plan. The Senior Management Team (SMT) examines the activities in more depth. SMT develops the annual business plan and associated budget, which are presented to the Board for discussion and approval in October. The day-to-day management of the charity is delegated to the Chief Executive Officer. Trustees are required to disclose all relevant interests and register them with the charity and, in accordance with the charity's policy, withdraw from decisions where a conflict of interest arises. All Trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 6 to the accounts. ## **Appointment of Trustees** If and when there is a requirement for new Trustees, these will be identified and appointed by the remaining Board. New Trustees are interviewed through two panels: the first made up of Trustees and then second with a member of the Governance Committee, the Chair and Chief Executive Officer. After interviews, the Chair will hold a follow up meeting with all the remaining Trustees to agree on the outcome. Potential Trustees are then invited to observe the next Board meeting before the final appointment. FoodCycle Annual Report and Accounts 2025 27 ## **Structure, governance and management** ## T **rustee induction and training** The Chair is responsible for the induction of any new Trustees, which involves awareness of a Trustee's responsibilities, administrative procedures, the history and strategic approach of the charity and the role we expect the new Trustees to take on. New Trustees are required to volunteer at one of our projects as part of their induction and meet the staff team. Each Trustee has a specific area of expertise on which they are expected to give guidance. ## **FoodCycle Board Committees** FoodCycle has three standing Board committees that support the Trustees by providing focused oversight, advice, and assurance in key areas. Committees operate under delegated authority from the Board and report back regularly. Each committee aims to meet at least three times per year. And terms of reference are reviewed annually. ## **Audit & Risk Committee** The Audit & Risk Committee (ARC) supports the Board by overseeing financial reporting, risk management, internal controls, and regulatory compliance. It reviews the annual accounts, monitors the organisation’s principal risks, and oversees the external audit process. The committee provides assurance that FoodCycle’s finances and risk controls are robust, transparent, and effective. ## **Governance Committee** The Governance Committee ensures that FoodCycle meets its legal, regulatory, and governance responsibilities as a charity. It oversees trustee recruitment, board composition, succession planning, policies, conflicts of interest, and safeguarding governance. The committee helps ensure the Board remains skilled, effective, and fit for purpose. ## **Fundraising & Trading Committee** The Fundraising & Trading Committee supports the development and oversight of FoodCycle’s fundraising and trading strategies to generate sustainable income. It reviews fundraising performance, trading opportunities, and associated risks, ensuring compliance with fundraising and trading regulations. Due to its nature, the committee may provide more hands-on strategic support than other committees. FoodCycle Annual Report and Accounts 2025 28 ## **Structure, governance and management** ## **Related Parties and relationships with other organisations** We work in collaboration with over 90 community organisations that provide kitchen and dining space outreach to guests and signposting them to their services. We also have partnerships with organisations that run FoodCycle services as a franchise. These partners are St Paul’s Church, Lisson Grove, London; Rushey Green Time Bank, Lewisham, London. As part of our schools programme, we work in partnerships with the Ark Academy Trust in their schools (Ark Globe Academy, Ark John Archer Academy, Ark White City Primary) and Windsor Olympus Academy to facilitate connections with schools as part of their schools' networks. Mary Jennings is a member of The Fishmongers’ Company but this poses no conflict as she does not sit on the Philanthropy and Grants Committee. Details of Trustee expenses and related party transactions are disclosed in notes 6 & 8 to the accounts. ## **Remuneration Policy** The Board consider the Chief Executive Officer, the Head of Programmes, the Head of Fundraising, the Head of Finance and the Head of Marketing as the key management personnel. This Senior Management Team (SMT) of the charity is in charge of directing, controlling, and operating the charity on a day –to-day basis. The pay of the charity's Chief Executive Officer and SMT is reviewed annually and normally increased in accordance with average earnings, assessed against the charity’s financial position and economic landscape in line will all other staff. The remuneration is also benchmarked with charities of a similar size and activity to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles. Under the Pensions Act 2008, all staff are auto-enrolled on a pension scheme following three months of service. FoodCycle Annual Report and Accounts 2025 29 ## **Statement of responsibilities of Trustees** The Trustees (who are also directors of FoodCycle for the purposes of company law) are responsible for preparing the Trustees’ annual report, and the financial statements, in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statements, the Trustees are required to: - Select suitable accounting policies and then apply them consistently Observe the methods and principles in the Charities SORP - Make judgements and estimates that are reasonable and prudent State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements - Prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in operation The Trustees are responsible for keeping adequate accounting records that disclose, with reasonable accuracy at any time, the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and, hence, for taking reasonable steps to prevent and detect fraud and other irregularities. In so far as the Trustees are aware: - There is no relevant audit information of which the charitable company’s auditor is unaware - The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees on 31 December 2025 was 9 (2024: 7). The Trustees are members of the charity, but this entitles them only to voting rights. The Trustees have no beneficial interest in the charity. FoodCycle Annual Report and Accounts 2025 30 ## **Auditor** Sayer Vincent LLP was reappointed as the charitable company's auditor during the year and has expressed willingness to continue in that capacity. The Trustees’ annual report has been prepared in accordance with the special provisions applicable to companies subject to the small companies regime. The Trustees’ annual report has been approved by the Trustees on 27th April 2026 and signed on their behalf by David West Treasurer FoodCycle Annual Report and Accounts 2025 31 ## **Independent auditor’s report** ## **Opinion** We have audited the financial statements of Foodcycle (the ‘charitable company’) for the year ended 31 December 2025 which comprise the statement of financial activities, balance sheet, 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 FRS 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: - Give a true and fair view of the state of the charitable company’s affairs as at 31 December 2025 and of its incoming resources and application of resources, including its income and expenditure for the year then ended - Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice - Have been prepared in accordance with the requirements of the Companies Act 2006 ## B **asis 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **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 Foodcycle's ability to continue as a going concern for a year of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other Information** The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. FoodCycle Annual Report and Accounts 2025 32 ## **Independent auditor’s report** 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 the audit: - The information given in the trustees’ annual report, for the financial year for which the financial statements are prepared is consistent with the financial statements; and - The trustees’ annual report, has been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual 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: - Adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - The financial statements are not in agreement with the accounting records and returns; or - Certain disclosures of trustees’ remuneration specified by law are not made; or - We have not received all the information and explanations we require for our audit; or - The directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ annual report and from the requirement to prepare a strategic report. ## **Responsibilities of trustees** As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. FoodCycle Annual Report and Accounts 2025 33 ## **Independent auditor’s report** ## **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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below. ## **Capability of the audit in detecting irregularities** In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: - We enquired of management, which included obtaining and reviewing supporting documentation, concerning the charity’s policies and procedures relating to: Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud; The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations. - We inspected the minutes of meetings of those charged with governance. - We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit. We reviewed any reports made to regulators. - We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations. We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business. FoodCycle Annual Report and Accounts 2025 34 ## **Independent auditor’s report** Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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 charitable company's members as a body, in accordance with 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 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. ## **Joanna Pittman (Senior statutory auditor)** Date for and on behalf of Sayer Vincent LLP, Statutory Auditor 110 Golden Lane, London, EC1Y 0TG FoodCycle Annual Report and Accounts 2025 35 ## **Statement of financial activities** Incorporating Income and Expenditure Account For the year ended 31 December 2025 company number 07101349 All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 15a to the financial statements. FoodCycle Annual Report and Accounts 2025 36 ## **Balance sheet** For the year ended 31 December 2025 company number 07101349 Approved by the Trustees on 27 April 2026 and signed on their behalf by David West Treasurer FoodCycle Annual Report and Accounts 2025 37 ## **Statement of cash flows** For the year ended 31 December 2025 company number 07101349 FoodCycle Annual Report and Accounts 2025 38 ## **Notes to financial statements** For the year ended 31 December 2025 ## 1. **Accounting policies** ## **a) Statutory information** FoodCycle is a charitable company limited by guarantee and is incorporated in England and Wales. The registered office address is 82 Tanner Street, London, SE1 3GN. ## **b) Basis of preparation** The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. FoodCycle has a trading subsidiary, FoodCycle Trading Limited but this company is dormant. These accounts are presented for FoodCycle as a charitable company. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note. ## **c) Public benefit entity** The charitable company meets the definition of a public benefit entity under FRS 102. ## **d) Going concern** The Trustees consider that there are no material uncertainties about the charitable company’s ability to continue as a going concern. There are key judgements that the charitable company will secure the forecast donation income, especially from corporates. The Trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting year. ## **e) Income** Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably. Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met. FoodCycle Annual Report and Accounts 2025 39 ## **Notes to financial statements** For the year ended 31 December 2025 ## **f) Donations of gifts, services and facilities** Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the Trustees’ Annual Report for more information about their contribution. On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the year of receipt. ## **g) Interest receivable** Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. ## **h) Fund accounting** Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund. Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes. Designated funds are unrestricted funds earmarked by the trustees for particular purposes. ## **i) Expenditure and irrecoverable VAT** Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings: - Costs of raising funds relate to the costs incurred by the charitable company in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose - Expenditure on charitable activities includes the costs of providing community meals to further the purposes of the charity and their associated support costs Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred FoodCycle Annual Report and Accounts 2025 40 ## **Notes to financial statements** For the year ended 31 December 2025 ## **j) Allocation of support costs** Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration, comprising the salary and overhead costs of the central function, is apportioned based on an estimate of staff time attributable to each activity. ## **k) Operating leases** Rental charges are charged on a straight line basis over the term of the lease. ## **l) Tangible fixed assets** Items of equipment are capitalised where the purchase price exceeds £100. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows: Office equipment 4 years Fixtures and fittings 4 years ## **m) Investments in subsidiaries** Investments in subsidiaries are at cost. ## **n) Debtors** Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. ## **o) Cash at bank and in hand** Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. ## **p) Creditors and provisions** Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. FoodCycle Annual Report and Accounts 2025 41 ## **Notes to financial statements** For the year ended 31 December 2025 ## **q) Financial instrument** **T** he charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. ## **r) Pensions** FoodCycle contributes to a defined contributions scheme. Payments in respect of the current service contributions are charged in the accounts as they fall due. FoodCycle Annual Report and Accounts 2025 42 For the year ended 31 December 2025 company number **0** 7101710 **349** ## **Notes to financial statments** FoodCycle Annual Report and Accounts 2025 43 For the year ended 31 December 2025 company number 071034907101349 ## **Notes to financial statments** FoodCycle Annual Report and Accounts 2025 44 For the year ended 31 December 2025 company number 071034907101349 ## **Notes to financial statments** ## **Analysis of expenditure (year prior)** FoodCycle Annual Report and Accounts 2025 45 ## **Notes to financial statements** For the year ended 31 December 2025 Redundancy costs were paid in full in the financial year. The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £369,223 (2024: £354,582). The Trustees were neither paid nor received any other benefits from employment with the charity in the year (2024: £nil). None of the current Trustees were paid for professional services supplied to the charity in the year (2024: £nil). Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £212 (2024: £41). The charity paid £nil for Trustee training (2024: £nil) and £nil for Trustee recruitment (2024: £nil). FoodCycle Annual Report and Accounts 2025 46 ## **Notes to financial statements** For the year ended 31 December 2025 ## **7 Staff numbers** The average number of employees (head count based on number of staff employed) during the year was 45.75 (2024: 45.67). ## **8 Related party transactions** There have been no related party transactions to report within the 2025 financial year and no restricted donations were received from related parties. Unrestricted donations received from FoodCycle Trustees within 2025 amounted to £610 (2024: £950) from two Trustees. ## **9 Taxation** The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. FoodCycle Annual Report and Accounts 2025 47 ## **Notes to financial statements** For the year ended 31 December 2025 FoodCycle Annual Report and Accounts 2025 48 ## **Notes to financial statements** For the year ended 31 December 2025 FoodCycle Annual Report and Accounts 2025 49 ## **Notes to financial statements** For the year ended 31 December 2025 **Community meals and general project activity:** Every year FoodCycle benefits from a number of grants and donations that fund our core activity of providing community meals. The majority of these are restricted to specific projects or geographical regions and each grant is tracked separately to ensure these requirements are met. **Community dining research:** FoodCycle received restricted funding from a corporate partner to commission British Nutrition Foundation to produce a research report on the benefits of community dining for people’s health and the health of the planet. In 2024, £15,856 was spent and a balance of £9,143 was carried forward. In 2025, the remaining £9,143 was fully utilised to complete and launch the publicly available report via media outlets and partner networks, leaving a nil balance at the year end. **City Bridge Foundation:** FoodCycle received restricted funding of £59,432 from City Bridge Foundation to support community meals in London. The funding was fully spent during 2025, with expenditure applied in line with the grant conditions, and no balance remained at the year end. **The Fishmongers’ Company’s Charitable Trust:** FoodCycle received restricted funding of £18,894 from The Fishmongers’ Company’s Charitable Trust to support Globe School meals. £13,632 was spent in 2025, with the remaining balance of £5,262 carried forward to support delivery in 2026. **The National Lottery Community Fund:** FoodCycle received funding of £97,977 from the National Lottery as part of "Reaching Communities - England" to provide community meals for specific projects. £84,831 was spent in the year and £13,145 remained at the year end to be carried forward for delivery in 2026. ## **17 Legal status of the Charity** The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1. FoodCycle Annual Report and Accounts 2025 50