2024-03-31-accounts

THE PILGRIMS FRIEND GROUP Group Financial Statements Forthe year ended 31 March 2024 COMPANY NUMBER 07169875 CHARITY NUMBER 1134979

Contents of the financial statements Page Trustees, report 10 Consolidated statement of financial activities 11 Consolidated balance sheet 12 Company balance sheet 13 Consolidated statement of cash flows 14-32 Notes to the financial statements 33 Statutory information 34-36 Independent auditor's report

Trustees, report The trustees present their report together with the financial statements of the group for the year ended 31 March 2024. The trustees, report incorporates the directors, report and the strategic report prepared for the purposes of company law. The statutory information is listed on page 33. MISSION REVIEW Our group charitable objects are to advance the Christian faith and meet the spiritual and physical need5 of older people. This work is increasingly needed as the ll umbe15 of older people grow with a significant unmet need for Christia n care and support and growing opportunities to share what we know about living well with older people in the communities around our homes. Our vision is to see older people lead ing fulfilled lives. This means that older people know Jesus, have their physical needs met, and receive the Christian encouragement, care, and support that they need to be fruitful and productive, and live with dignity. Our goals are to have a growing network of residential care homes and independent living housing schemes through which more people receive excellent Christian care and support, and alongside which we will develop local partnerships between our homes and housing and churches to encourage work amongst older people in the community. Our values We talk regularly about our values with all our stakeholders. and they are increasingly embedded in the way that we work. Compassion is at the heart of how we interact with people. We offer loving care through relationships based on empathy respect and dignity. We get alongside people and show grace to those who are struggling and do what we can to ease people's burdens. We find new ways to care well for older people, Community is central to human flourishing. We are a community of people who share life together, celebrating victorie5 and supporting each other during challenging times. We share what we do and our vision for the future with others in the wider community. Transparency is being honest and open which is crucial to doing good work. We are honest, open about challenges and looking for solutions. We listen respectfu Ily to each other and when we disagree, we do so without conflict, and we use mistakes as opportunities to learn and grow, Excellence is what we strive for in our work. We Strive for excellence, making sure that we go above and beyond in our work. We do go the extra mile to do things as well as we p055ibly can. We steward our resources carefully and take opportunities to get better at the work we do. Our work and culture We have a bespoke approach to care which sets us apart in our provision of care for older people known as The Way We Care. At the heart this approach is the understanding that every person living with us is made in the image of God and therefore must be treated as a valued individual who has things to contribute to the life of the community within which they live. As part of The Way We Care we call those who live with us "family members" as we create communities which are rooted in the idea of being a special kind of family together. As e3ch new'family member" comes to live with us their preferences and personal history is gathered and informs all aspects of their care. It also impacts the kind of activities that are delivered in the horne so that each person feels comfortable and welcome in the social context. An important aspect of The Way We Care is about how those living with dementia can flourish in our home5. We employ people who role is to spend t￿me with those who live with us, whether that's 30 seconds holding a hand and sing￿ng a familiar song or hymn. or five minutes looking at a family photo album. We also employ The Way We Care Leads who have responsibility for embedding this approach throughout each home, helping carers to take person-centre approach. rather than a task-centred approach, to the delivery of care. Page I

Our Activities and Community Engagement IACEI Programme has developed well, and we've been able to welcome more volunteers into our homes and make more connections with the communities around our hornes. This has meant that visits from schools, churches, and other groups such as choir5 are a regular function of life in our homes and that relationships with churches and others in the communities arou nd our homes are stronger. Each volunteer that we train is better equipped to work well with older people in their churches and neighbourhoods. The quality of our care remained high the year with all CQG and Local Authority reviews finding good or better care, and our own internal monitoring and carehome.co.uk reviews saying the same. Two of the home that joined the Group did so with 'Requires Improvement" assessments from CQC and they are now benefitting from our systems and training as we plan to restore their"Good" CQC rating. During the year we strengthened our team overseeing our housing provision. We agreed a new strategy for our housing provision, and we have started to get to grips with standardising our processes and exploring how to improve our provision. Our staff People are the heart of what we do with our supportive and caring Christian communities not only providing a wonderful care and support for older people but also creating a great working environment for our staff. We have continued to invest heavily in traini ng, particularly in our care staff. The Way We Care continues to be embedded throughout our care homes through specialists known as The Way We Care Lead5. Our Activity and Community Engagement Facilitators have been trained and equipped to start sharing some of what we know about living well with older people with churches and others in the community around our homes. During the year we developed this by incepting a project to involve all or our ancillary staff in living well with our family members lin what Is called a 'whole home approach"), and to extend our scope to include more intentionally the relatives of people living with us and people who care in the comrnunity. We listen to our colleagues through six monthly staff surveys and follow up staff forum5. We are pleased that our colleagues remain highly committed to their work and very engaged with the charity seeing as an employer that helps them give of their best. Our staff vacancies rates have reduced significantly over the year. and most of our operations are effectively fully staffed. This has been helped by recruit5 from overseas, all of whom have been referred to us by existing colleagues or others that we know. We have not Used agencies so we can be sure that the recruitment and employment of these colleagues ha5 been to the highest ethical standards. We have continued to invest in our leader5 through our annual Senior Management Team conference and during the year we started to encourage our managers to take spiritual development days to strengthen their capacity to support the spiritual life of their homes and housing. Growlng for the future We want to see our unique model of Christian care widely available around the UK and this vision is encapsulated in what we call our Renewal Programme of which Middlefields House, the new horne we opened in Chippenham in 2021, is the start. We have been delighted to see how this new building. designed to support The Way We Care in family sized households has led to fulfilled living of the highest order. The home has also exceeded our financial business case assumption5 and is producing a surplu5 that allows us to invest the quality of what we do in Chippenham and elsewhere. During the year we have made multiple approaches for sites c105e to some of our older buildings seeking to replicate the success of the renewal that we managed in Chippenham. We call thi5 our Growth and Renewal strategy. Hitherto. we have not been successful, but our search continues particularly in The South Coast area around Worthing. We are looking for sites that will allow a new build and/or the purchasing of existing operations where this will improve the q uality of our buildings and support high quality care for the medium term. In the year we have also seen growth as we have welcomed into the Group the transfer of a care home in Cumbria Icu mbria Emmaus House) and the transfer of Homesdale Iwoodford Baptist Homes) Limited, a Registered Society that run5 housing and care for older people in Northeast London. There are two other Christian care home charities that we are in discussion with that might lead to the gifting of assets and operations to the Group in 2024125. Page 2

In the year we also faced significant bill for ensuring fire safety at our home In Plymouth that we were not able to justify. This led to the sale of the Bethany Home to a local operator as a going concern and we were able to ensure continuity of the Christian ethos of the home by continuing the employment of the Activity and Community Engagement Facilitator for at least a further two years. We also had to close our domiciliary care agency at Royd Court "Pilgrim Care" as we were finding it impossible to find good staff given the intermittent rotas, we were able to offer because of the size of the scheme. We have continued to support Faith in Later Life, a charity that we incubated, and it has continued to grow now encouraging, equipping, and inspiring over 900 volunteers working in churches with older people, known as Church Champions. In communitie5 where we don't have care homes and housing then we want to see active Faith in Later Life Church Ch3mpions pursuing our charitable objects. During the year we were also pleased to start an initiative "Christians in Care" to support Christians working in secular care setting5 helping them keep going and encouraging them in their work to advance the Christian faith amongst older people. Ralsing our profile Our engagement with press, both local and national, has continued with significant media coverage showcasing the value of older people and what it's like to live with us. Asan example. International Women's Day in March led to articles in Readers Digest, and references to us in Premier Christianity magazine. Articles appeared regularly in Christian print media. Our summer campaign was targeted at future supporters in a younger demographic as we encouraged people to prepare well for older age with material presented under the heading of"Getting real About Getting Older" We prepared a document 'Empowering Communities to Care" that developed some of the themes in the archbishops 'Reimagi ng Care Commission" During the year this attracted a lot of support from other charities and as a post balance sheet event will be used to shape policy and raise our profile. Alongside this were regular appearances by Louise Morse and Stephen Hammersley and on Christian radio including TWR, UCB and Premier Radio, all of which highlighted our work among older Christians. Funding challenges The low level of Local Authority funding and significant cost inflation means that the true cost of care is often not met by Local Authorities which, partnered our determination to accept people based on need rather than the ability to pay, results in a more challenging financial trading position than we would like. The difference between Local Authority and private pay rates has grown dramatically over recent years and erodes our financial surplus. Itis hard to see us being able to carry on providing the full breadth of services that are included in The Way We Care in location5 where we have large numbers of local authority funded family members unless we can increase our donations commensurately. We continue to receive generou5 charitable contributions, particularly in the form of legacies, that we plan to i nvest in new provision for older people. MESSAGE FROM THE CEO There is a lot of detail in our numbers, but as in previous years this rnust not cloud the fact that in an immensely challenging environment, we have again delivered very high quality and distinctive Christian Care and Support to people who want to live in a Christian commu nity. l am immensely grateful to my colleagues who make this happen and who are an inspiration to mel We thank God for the strong headline surplus and that we have started to improve our underlying financial performance as Middlefields House has performed well, occupancy has been strong. and as we have added new homes and housing to our portfolio. Page 3

The success of Middlefields is a great encouragement to progress our Growth and Renewal Programme, and we are working hard and trusting in God's timing for sites to repeat this process of modernising our portfolio. Last year we have strengthened our team 50 that we have the capacity to help other Christian charities that are struggling with governance and other challenges of running care and housing operations. That allowed us to complete the work to take over the running of the Koinonia Christian Care horne in Worthing in April 2023, and subsequently to welcome the transfer of the assets and operations of Cumbria Emmaus House and Homesdale (Woodford Baptist Homes) Lirn ited to The Pilgrims Friend Group. These two latter gift5 have a history of profitable trading and came with significant cash assets. There have been many encouragements as we have progressed our work to enable the Christian faith to be advanced amongst older people though our work. FINANCIAL REVIEW During the year ended 31st of March 2024 the group made a net surplus of £9,089,000. This is after the exceptional surplus arising from the transfer of the assets and operations of Cumbria Emmau5 house to the Pilgrims Friend Group and the bringing of Homesdale (Woodford Baptist Homes) Limited into the Pilgrims Friend Group. The key measure of performance used in the charity's management accounts is its earnings before interest, tax, depreciation, amortisation and rent IEBITDARI. EBITDAR for the year is reported as £9,539,000. These headline numbers are important as they reflect the total income for the group and the total costs, but a5 they include the exceptional income and the costs that relate to our planned acquisitioi) of other homes and housing, they don't reflect the financial performance of what night be c311ed the underlying work of the group to deliver care and support to older people through our homes and housing and in the community. Our homes and housing scheme5 benefitted from good cost control and strong occupancy as we recovered from post pandernic lows and were in surplu5 overall. Only Plymouth which lost £212,000 up to January 2024 was in in significant deficit owing to low occupancy and unsustainable costs needed to preserve fire safety. This home was sold in January 2024 through an arrangement that retained our Christian activities and community engagement. These surpluses were not, however, sufficient to cover the costs of acquiring new homes., looking for new sites on which to build new homes. the costs of our work in the communities around our homes., and the costs of welcoming everyone into our homes even if local authority fees are less than our costs of caring. That is why we need and value legacies and donations that amounted to £933,000 in the year. If we strip out from the headline nurnbers all the exceptional income that came from the two home5 acquired and all of our legacy income that might not be repeatable and our interest income, we have an underlying deficit of £728,000. The financial results emphasise the need to make progress with our growth and renewal programrne to invest in new buildings that will support care and housing work that will be more financially sustainable, similar to our home in Chippenham that wa5 opened in 2021 and replaced an older building that was struggling financially. The cash that we had in our balance sheet at the year end. and more. will be needed to help us make that transition and that is another rea50n why donations and legacies matter to us. STATUTORY INFORMATION Our objects and how we seek to fulfil them The Pilgrims Friend Group is a non-trading charitable company which is the sole corporate member of Pilgrims, Friend Society, Pilgrim Homes and Pilgrim Homes Trust. In turn. Pilgrims, Friend Society is the sole corporate rnember of Strathclyde House Trust and Homesdale Iwoodford Baptlst Homes) Limited. The governing document is the articles of association. The Pilgrims Friend Group exists to research and understand the context for the delivery of Christian ca re, and it sets policies and provides direction for the charities in its group. The Board of this charity make5 Significant decisions for the running of Page 4

the group. All the Members of the Board of Trustees of The Pilgrim5 Friend Group are also on the board of one or more of the Group's subsidiary entities. The trustees of the Pilgrims Friend Group are distributed so that we have the capacity to manage conflicts of interest while transacting business between charities. After taking legal advice as part of the process of bringing the Homesdale Iwoodfordl Limited into the Group we also enacted the necessary policies that allow us to manage conflicts of interest by directors/trustees temporarily stepping down should that be needed to allow non conflicted decisions. Responsibility for the day-to-day operations of the charity is delegated to the Chief Executive and Senior Management Team of Pilgrims, Friend Society which has been the main operating charity for the group. The pay of Key Management Personnel is reviewed annually and normally increases in accordance with average earnings bearing in mind charities of similar Size and activity. Pilgrims, Friend Society and The Pilgrim Friends Group have identical objects with the primary object being "the advancernent of the Christian faith and the relief of poverty, sickness, disablement, old age and infirmity forthe pu blic benefit to the glory of God" Strathclyde House Trust has similar objective5 to these two charities. The objects of Pilgrim Homes and its successor charity Pilgrim Homes Trust are: 'The relief either individually or collectively of poverty, sickness, disablement, and infirmity of older people of the Protestant Christian faith including by the provision and maintenance of residential care and housing" Pilgrim5' Friend Society advances the Christian faith by operating Christian care and housing for older people and by producing resources that inspire, encourage, and equip others in their work of caring for older people. Pilgrims, Friend Society operates all our homes and schemes in the group Homesdale Iwoodford Baptist Homes) Lirnited and Strathclyde House Trust apart. in the same way to ensure the same quality of Christian care and to give us economie5 of scale in our operations. Homesdale (Woodford Baptist Homes) Limited and Strathclyde House Trust remain as distinct legal entities but follow policies and procedures derived from those in place within Pilgrims, Friend Society. Pilgrim Home5 Trust land Pilgrim Homes before it) fulfils its objects through the ownership of care homes and housing schemes which are operated on its behalf by Pilgrims, Friend Society. Pilgrim Homes Trust IS the grou p charity that built the first of our Renewal Programme homes at Chippenham (Middlefields House). During the year we brought Homesdale (Woodford Baptist Homes) Limited into the group through a "Groupi ng Agreement" that also involved their committee members standing down in favour of people drawn from the Pilgrim Friends Group Board. Hornesdale (Woodlord Baptist Homes) Limited is a Registered Society regulated by the Financial Conduct Authority, a registered provider of social housing, and an exempt charity. As part of the grouping work, we updated the eq uivalent of the objects of Homesdale (Woodford Baptist Homesl Limited to be con51Stent explicitly with the objects of the Pi Igrim Friends Group. The Annual Review section of this report sets out how our work provides accommodation and care to older people through the provision of Christian care in a residential setting to those who are over 65 and in need of such accommodation or care because of their age, poverty, sickness or disablement. Our charities advance the Christian faith by ensuring that beneficiaries have every opportunity to pursue their Christian lives. Regular devotions, opportunities to pray and be supported in prayer, Christian services, Bible studies, opportunities to share fellowship and express Christian beliefs and value5 through crafts and activities are available in all our homes and schemes. The benefits of our work are people living safe and fulfilled lives in their later years when they need Christian care and support. Pilgrims, Friend Society, Homesdale (Woodford Baptist Homes) Limited and Strathclyde House Trust (both of which PFS is the sole member) provide a safe, Secure environment and a Christian community with opportu nities for fellowship with like- minded Christian people Public beneflt The charity's trustees have considered the guidance regarding public benefit when considering and planning their objectives and activities for the year. Page 5

Employment pollcles Pilgrims, Friend Society, Strathclyde House. and Homesdale Iwoodford Baptist Homesl Limited always selects staff colleagues based on their ability to do thejob on offer based on a "Person Specification" for each post. We are fully compliant with Equalities legislation and recognise our obligations, under Disability Discrimination legislation, to consider reasonable modifications to allow people living with a d isability to take up employment. We have an occupational requirement for some posts to be filled by Protestant Christians, who agree with our doctri nal basis, to maintain our founding Christian ethos. These issues are dealt with fully under the charity's Equal Opportunities policies. All our homes hold regular meetings for all colleagues which are designed to impart information regarding developments within the charity a nd to give staff opportunity to raise issues. Where any specific proposal is likely to have a significant impact on individual members of staff, such staff are consulted in line with current legislation and good practice. We conduct a charity wide staff survey and feedback to colleagues on how we respond to the issues ra ised. We are in regular communication with our staff colleagues on all matters relating to their terms and conditions of employment. We survey our staff colleagues twice a year followed up by forums open to all. The managers of our homes and schemes meet at least twice a year Js the'senior team. and one of these meeti ngs includes discussion with the trustees as to the future direction of the Society. Significant changes to the work of the Society are typically preceded by a consultation with colleagues in our homes and schemes and our volunteers sometimes involving visit by a member of the executive team and a trustee. We encourage colleagues, involvement in the Society's performance and their awareness of the factors affecting our work through a monthly prayer bulletin that is posted on the noticeboards in all our homes and schemes. Volunteers Our volunteers are avital aspect of our work. As well as raising some of the finances we need they also make them 80 much further through their volunteering. We are particularly grateful to visitors who provide much needed comfort and company to residents and those who lead the regular acts of worship in our homes. The Charity Comm ission requ ires we state a number for these volunteers, and we estimate this to be around 425 (was 200 last yearl. Future developments These are discussed in the Annual Review section of this report. Related parties The trustees of the charity consider the following to be related parties.. Key Management Personnel of Pilgrims, Friend Society The following charities.. Pilgrim Homes (charity no. 2422661 Pilgrims, Friend Society (charity no. 1045920, company no. 30270711 Pilgrim Homes Trust (charity no. 1183226, company no. 116856241 d. Strathclyde House Trust - Icharity no. SC025550. company no. SC1698481 PFG Trading Limited - a lim ited company Aged Pilgrims, Friend Society Trust Limited a limited company which holds title to the properties owned by Pilgrim Homes Trust. Investment policy These accounts include £0.86 million of investments which are properties owned by Pilgrim Homes which are not suitable to be let to beneficiaries of the Charity and are therefore let as investment5 to third parties. Some of these properties are close to. or indeed within the curtilage of our care home5 and such properties are therefore difficult to dispose of and are. where possible, let to Staff members. Given the need for cash. the trustees take the view that it is betterto retain the majority of the charity's funds in bank d ep051ts, rather than investing in other types of assets. Page 6

Prlncipal sources of funding The group expects to continue to raise most of its income from fees charged to residents of its homes and by charges for its housing. The Growth and Renewal Programme will be funded by borrowing, social investment, the sale of some property assets and donation5. Accommodation charges policy As with the other related charities, this charity sets the level of charges for accommodation in its care homes based on local market conditions. It does not discriminate against older Christians who may not have the resources to meet the costs of their own care and we accept residents whose fees are met on their behalf by local authorities, notwithstanding the shortfall that then arises. In these circumstances we seek a 'top-up' from family or friends where possible. Fundraising The charity does not employ outside or commercial fund-raisers. We make sure that our supporters are kept up to date with our work and that they have the opportunity to give to support it. It issues a magazine four times a year and solicits prayer for the work of the charity. Both the magazine and the prayer updates issued by the charity may include mention of financial needs. No complaints have been received in the year about our fundraising. Pilgrims, Friend Society is registered with the Fundraising Regulator. Risks and regulations The charity maintain5 a comprehensive register of risks which is reviewed by the Key Management Personnel at their monthly meetings and by trustees at every trustee meeting. Risks are rated as to both their likelihood and severity. A significant achievement during the year were to be able to reduce our IT related risk ratin8 following the retendering of out IT SU Pport contract and the achievement ol Cyber Essentials accreditation at one of our homes as a pilot for rolling this out to all our operations. The risks faced by the charity with the highest ratings are.. Risk Renewal programrne at risk because of increasing costs and delays findin sites Financial drain on Society as cashflow from homes and scheme5 unable to finance necessary support cost5 Ageing of properties to point where costs to maintain are prohibitive PFS unable to retain staff Actions to miti ate Replanning of the Renewal Programme - taken to Board in July 23. Budget process and monitoring. 23124 budget shows a red uced cash outflow, but an outflow nevertheless. Renewal Programme. Proactive management ofemerging problems fire esca ecom liance. Working to understand drivers of people leaving. Overseas recruitment. We are no worse than sector average, but this is a major risk and cost. Use of agencies to find and recruit as well as proactive advert15ing. This remains a challenging area. We will priorit15e salaried pay at these positions, but the supply of Christian managers is limited. We lan to hold on to ood staff if we see future roles. This ha5 become a sector wide challenge. We have increased pay faster than living wage and brought pay rises forward. Developing H R support and strengthening team. We need to keep a close eye on this in case we need to do more. Keep financial performance under review and be prepared to cut C05t5 and increase fees if necessar Apprenticeships, career paths and plan actions to enhance recruitment. We have recruited over 20 staff from overseas Effective occupancy marketing. Timely performance data and mana ernent action. Careful design of PFS compliance policies and QA Systems. Careful mana ement and inte ration of ift acceptance homes. PFS unable to recruit Christian home managers Tightening labour rnarket increase5 agency staff osts and dependency on agency staff Cost inflation not matched by fees PFS unable to recruit staff with relevant skills in a timely fashion Reduced occupancy in homeslschemes falling below viabilit level Significant and unresolved non-compliance with re ulations Page 7

Reserves The Charity holds funds of £54,955,000 at the year end. Restricted funds account for £32,780,000 of this and most of these reseNes can be used to fund operational costs of a proportion of the operating entities (the Pilgrim Homes). Of the general and designated funds £19,490,000 could only be realised by disposing of tangible fixed asset5 or programme related investments. This means that the rese￿eS Ithat is, the part of the charity's unrestricted funds that is freely available to spend on any of the charity's purposes) is £2,685,000. a surplus of £1,685,000 against a target of £1,000,000. Trustee recruitment and training Trustees are appointed at a board meeting following a nomination process. Candidates must meet a set of specifications oncerning personal competence, specialist skills, availability, and Christian belief. Once the Board and new trustee decide to proceed with a formal appointment there follows an induction period to familiarise the new trustee with the charity's operations. Newly appointed trustees meet with the Chief Executive and members of the Senior Management Team to introduce the affairs of the charity, key operational method5 and the current strategic plan. Trustee performance is subject to an annual review by the Chairman and a collective self-appraisal is also undertaken. Section 172 statement The directors consider the key stakeholders of the group to be the people living in our homes and schemes and its employees. In their decision-making the directors consider both the short and long term impacts. The directors promote the success of the group for the benefit of its stakeholders by.. considering the likely consequences of strategic and operational decisions in the long term rewarding employees, performance and encouraging their personal development management briefings development reviews health and well-being and socia l initiatives are used to engage with employees providing an excellent service to our custorners that is responsive to their needs acting fairly between the group's key stakeholders when their priorities differ In addition, the directors foster the group's business relationships with suppliers and maintain a reputation for high standards of busi ness conduct by specifying values and a code of conduct for staff. The impact of the group's operations on the community and environrnent is considered when planning new site5. Streamllned Energy & Carbon Reportin8 None of the entities within the group meet the requirements at an individual level for reporting. STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustee5 (who are also directors of The Pilgrims Friend Group for the purposes of company13wl are responsible for preparing the Trustees, Report (incorporating the directors, report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standard5, including Financial Reporting Standard 102.. The Financiol Reporting Standard opplicoble in the UK ond Republic of Irelond (United Kingdom Generally Accepted Accounting Practice), Cornpany law requires the trustees to prepare financial statement5 for each financial year which give a true and fair view of the state of affairs of the charitable group and of the income and expenditure of the charitable group for that period. 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, makejudgments and accounting estimates that are reasonable and prudent, state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements, and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable group will continue in busine55. The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial p051tion of the charitable group 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 group and hence for taking Page 8

reasonable steps for the prevention and detection of fraud and other irregularities. STATEMENT OF DISCLOSURE TO AUDITOR So far as each person who was a trustee at the date of approving this report is aware, there is no relevant audit information of which the charity's auditor is unaware. Additionally, the trustees individually have taken all the necessary steps that they ought to have taken as trustees to make themselves aware of all relevant audit information and to establish that the charity's auditor 15 aware of that information. AUDITORS Jacob Cavenagh & Skeet were the charitable company's auditors during the year and have expressed their wi Ill ngness to continue in that capacity. Approved by the trustees and signed on their behalf by.. Mr J Edwards Trustee Date.. 181h July 2024 Page 9

Consolidated statement of financial activities (incorporating the income and expenditure account) For the year ended 31 March 2024 2024 Rest- ricted Funds £000 2023 Rest- ricted Funds £000 Unrest- ricted Funds £000 Total Unrest- ricted Funds £000 Total Note £000 £000 Income from: Donations and legacies Investments Charitable activities Other income 9,654 126 9,846 387 41 9,592 10,041 167 19,438 8,368 203 45 8,931 8,571 48 16,417 7,486 Total Income Expenditure on: Raising funds Charitable activities 33 41 27 18 45 Total expenditure Net gainslllossesl on investments Net Incomellexpenditurel 8,214 875 9,089 6,772 12311 6,541 Transfers between funds i￿) Net movement in funds 8.215 874 9,089 6,756 12151 6.541 Reconciliation of funds Total funds brought forward Total funds carried forward All of the activities are continuing. There were no recognised gains or losses other than those stated above. The notes on pages 14 to 32 form part of these financial statements. Page 10

Consolidated balance sheet As at 31 March 2024 2024 2023 Note £000 £000 £000 £000 Fixed assets Tangible assets Investments io li 40,489 33,473 43,324 34.535 Current assets Stock Debtors and prepayment5 Cash equivalents on deposit Cash at bank and in hand 12 13 713 4,991 3,407 1,556 6,596 2,502 13,fAO 12,951 Creditors.. Amounts falling due within one year 14 I￿￿2Q) Net current assets Total assets less current liabilities Net assets Funds: Unrestricted funds Restricted funds (including revaluation reserve of £0.523m12023'. £0.523mll Is 15,16 22,175 13,960 17 Total Funds The financial statements were approved by the Tru5tee5 On 18, July 2024 and signed on their behalf by: J Edwards Trustee Company Registration No.. 07169875 The note5 on pages 14 to 32 form part of these financial statements. Page 11

Company balance sheet As at 31 March 2024 2024 2023 Note £000 £000 £000 £000 Fixed assets Investments li 7,651 43 Current assets Cash atbank and in hand Creditors: Amounts falling due within one year Net current assets Total assets less ¢urrent liabilities Funds.. Unrestricted fund5 Restricted fu nds 7,651 43 Total Funds The company's net income for the year was £7,60812023.' £nill. The financial statements were approved by the Trustees on 18" July 2024 and signed on its behalf by.. J Edwards Trustee Company Registration No.. 07169875 The notes on pages 14 to 32 form part of these financial statements. Page 12

Notes to the financial statements Fortheyearended 31 March 2024 2024 £000 2023 £000 Cash flow5 from operating activities Trading and donations Net income Depreciation Gift of Koinonia net assets excluding cash Gift of Melbourne Hall property Gift of Cumbria Emmaus net assets excluding cash Gift of Homesdale net assets excluding cash Decreasellincreasel in legacy debtors Investment income included in investing activities Lossllgainl on disposal of fixed assets Reali5ed Igainsl on disposal of investments Movement in fair value of investments Net cash provided by/lused inl trading and donation5 9.089 834 6,541 879 12,3071 11,0591 (1,1031 16,2081 2,003 ( 167) 26 14,3861 1 481 141 Workin9 capltol movements Decrease in housing stocks Transfers frorn stock to tangible fixed assets Ilncreaselldecrease in debtors excluding legacies Increase in creditors Net cash Iu5ed inl/provided by working capital movements 843 11,2261 41) 299 1 5221 795 Net cash provided by operating actlvities Cjsh flows from investlng and financing activities rangible fixedassets Payments on additions of tangible fixed assets Adjustments to fixed assets Proceeds on disposal of Melbourne Hall Procccds on disposal of tangible fixed assets Net cash (used inllprovided by tangible fixed assets (1,3361 71 1 5251 1,059 Fixed osset investments Investment income received Payments on additions of fixed asset investments Proceeds on disposal of fixed asset investments Net cash Iu5ed inllprovided by fixed asset investments 167 1 5081 48 1 2001 Financing activities Repayment of borrowings Net cash {used inl financing activities IL&QQI Net cash {used inllprovided by investing and financing activities Net cash inflow 3,137 1,397 Cash and cash equivalents at l April 2023 Cash and cash equivalents at 31 March 2024 Page 13

ACCOUNTING POLICIES The company is registered as a charitable company limited by guarantee incorporated in England and Wale5 and is governed by its Memorandum and Articles of Association. Its registered office is 175 Tower Bridge Road, London SEI 2AL. The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows.. la. Basis of accounting These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" I'FRS 102,1, 'Accounting and Reporting by Charities" the Statement of Recommended Practice for Charities applying FRS 102, the Companies Act 2006, the Charities Act 2011 and UK Generally Accepted Accounting Practice. The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £1,000. The financial statements have been prepared on the historical cost convention, modified to include certain inve5trnents and financial instruments at fair value. Ib. Consolidation The consolidated financial statements combine the results ofthe charity and its subsidiary undertakings which are as follows.. Name The Pilgrims Friend Group Pilgrims, Friend Society Pilgrim Homes Iformerly Aged Pilgrims, Friend Societyl Operation of care homes and sheltered accornmodation Pilgrim Homes Trust Operation of care homes and sheltered accommodation Strathclyde House Trust Operation of sheltered accommodation PFG Trading Limited Trading activities connected with the group Homesdale (Woodford Baptist Homes) Ltd Operation of care homes and sheltered accommodation Activitles Parent charity with no assets, income or expenditure of its own Operation of care homes and sheltered accommodation The transactions and balances of the subsidiary undertakings are included in the consolidated accounts on a line by line basis with intragroup transactions eliminated on consolidation. Where the charitable company has been installed as sole trustee of a charitable subsidiary during the period the fair value of the assets and liabilities brought into the group is recognised within voluntary income. A separate Statement of Financial Activities for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by Section 408 of the Companies Act 2006. Ic, Going concern At the time of approving the financial statements, the trustees have a reasonable expectation that the company ha5 adequate resources to continue in operational existence for the foreseeable future. Thus, the trustee5 continue to adopt the going concern basis of accounting in preparing the financial statements. Page 14

ACCOUNTING POLICIES Icontinuedl Id. Tangible fixed assets Fixed assets are recorded at historic cost. Expenditure on existing properties is capitalised when works result in an enhancernent of economic benefits of the a55et. Other expenditure on the properties is charged to the income and expenditure account. Where appropriate, the historic cost less accumulated depreciation of any replaced components is released from the asset and recognised as a1055 on disposal. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost or valuation, less estimated residual valLJe, of each asset over its expected useful life. The following rate5 are used on a straight-line basis.. Land Buildings Roof Electrics Windows, doors, heating and plumbing Bathrooms and lifts Kitchens- sheltered Boilers Kitchens- residential Furniture and equ ipment- sheltered Haré landscaping Motor vehicles Computer equipment 100 year5 70 years 40 years 30 years 20 years 20 years 15 years 10 years 10 years 5ye3rs 4years 4 years le. Investments Investment properties comprise properties, all owned by Pilgrim Homes (formerly Aged Pilgrims, Friend Society) which are not suitable for occupation by beneficiaries of the charities within the group and are therefore let on commercial terms to either staff members or third partie5. Listed investments are stated at fair value. All investments are revalued every year with the investment gains or losse5 shown in the Statement of Financial Activitie5. If. Income Housing and care income is recognised on the basis of the period that the service was provided to the resident. Voluntary income and donations (including legacies) are accounted for once the charity has entitlement to the income. it is probable the income will be received and the amount of income receivable can be reliably measured. Where material assets are donated to the cornpany for its use, these are capitalised at the estimated market value at the date of the gift and included under income. Ig. Grants Grant income is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. Ih. Expenditure Expenditure is accrued as soon as a liability is considered probable. discounted to present value for longer term liabilities. Charitable expenditure includes all support costs in respect of the company's activities. li. Governance costs This comprises expenditure on compliance with statutory legal requirernents and is included in charitable activities. Page 15

ACCOUNTING POLICIES (continued) lj. Fund accounting General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objective5 of the charity and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the trustee for particular purposes. The aim and use of each designated fund are set out in the notes to the financial statements. Restricted funds ère funds which are to be used in accordance with specific restrictions imposed by donors. The aim and use of each restricted fund are set out in note 18 to the financial statements. Ik. Lease$ Rentals payable under operating lease5 are dealt with on a straight-line basis over the lease term. Total lease repayments have been disclosed over the remaining life of the lease. 11. Penslons The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year. Im. Stocks Stocks are stated at the lower of cost and net reali5able value. In. Debtors Debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid. lo. Cash and cash equivalents Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit. Cash equivalents on deposit includes cash on deposit with a maturity of over three rnonths. Ip. Creditors and provlslons Creditors and provisions are recognised where the group has a present obligation arising 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 recognised at their settlement amount. Conce5sionary loans are included at historic cost. Iq. Financlal instruments The charity only has financial assets and liabilities of a kind that q ualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Page 16

DONATIONSAND LEGACIES Unrestricted Funds £000 Restricted Funds £000 Total 2024 £000 Total 2023 £000 Donations Net assets gifted by Cumbria Emmaus Net assets gifted by Homesdale Donation of Melbourne Hall property Net assets gifted by Koinonia Legacies 150 1,500 7,608 324 474 1,500 7,608 279 1,059 2,434 INCOME FROM INVESTMENTS Unrestricted Funds £000 Restricted Funds £000 Total 2024 £000 Total 2023 £000 Bank interest Rental of investment properties Other interest 121 127 35 35 43 INCOME FROM CHARITABLE ACTIVITIES Unrestricted Funds £000 Restricted Funds £000 Total 2024 £000 Total 2023 £000 Care fees Housing income Extra Care Housing lease sales Covid-19 LA care grants 9,225 297 324 8,437 782 373 17,662 1,079 697 14,592 1,003 776 INCOME FROM OTHER SOURCES Unrestricted Funds £000 Restricted Funds £000 Total 2024 £000 Total 2023 £000 Gain on disposal of tangible fixed assets Commercial trading operations 125 125 248 Page 17

EXPENDITURE ON RAISING FUNDS Unrestricted Funds £000 Restricted Funds £000 Total 2024 £000 Total 2023 £000 Publicity and deputation EXPENDITURE ON CHARITABLE ACTIVITIES Unrestricted Funds £000 Restricted Funds £000 Total 2024 £000 Total 2023 £000 Activities split by fund.. Housing Care Cost of Extra Care leases sold Education and training Raising awareness General support costs 263 9,662 310 281 136 738 7,678 373 24 I,ooi 17,340 683 305 144 1.358 15,030 759 216 106 11,244 8,655 19,899 17,809 Depreciation Loss on disposal 352 482 834 879 759 Page IE

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STAFF COSTS 2024 £000 2023 £000 Wages and salaries Social security costs Pension costs Agency staff costs 11,564 883 387 848 9,584 705 386 The average number of staff employed in the year on headcount was: No No Homes Head Office 588 529 The average number of staff employed at the end of the year on a full.time equivalent basis was.. No No Homes Head Office 464 397 The emoluments of ten employees exceeded £60,000 in the year ended 31 March 202412023: five). Four of those employees earned between £60,000 and £70,000, Three earned between £70,000 and £80,000, one earned between £80,000 and £90,000, one earned between £90,000 and £IOO,000 and one earned between £IIO,000 and £120,000 including redundancy p3y12023'. three between £60,000 and £70,000. one between £80,000 and £90,000 and one between £90,000 and £lOO,0001. Remuneration of £l,57412023'. £3,044) was paid to one trustee, Mr Martyn Hallett during the year for employment as pastoial co-ordinator on a part time basis. Mr Hallett started this paid role on l March 2020, before he was appointed as a trustee in October 2022. Continued employment is in accordance with Clause 4 of the Articles of Association of the Charity and consent given by the Charity Commission. No remuneration was paid to any other trustee during the year. Travel expenses of £34312023.. £1,180) were reimbursed to 3 trustees12023,' 4 trustees) for items incurred wholly, exclusively and necessarily in the course of the charity's activities. The total aggregate remijneration of Key Management Personnel for the year was £532,78512023'. £496,272). The total remuneration (including gross salary, employer's National Insurance, benefits in kind and employer's pensions contributions) paid to family members of the trustees was £48,29312023'. £58,884). NET INCOME 2024 £000 2023 £000 This is stated after charging: Depreciation Net Igainl on disposal of tangible fixed assets Loan interest Auditors, remuneration for audit services Auditors, remuneration for other services 834 (99) 879 12481 22 37 33 Page 20

1. TANGIBLE FIXED ASSETS Freehold and leasehold properties £000 Furniture, flttings and equipment £000 Motor vehicle5 £000 Total £000 Cost As at l April 2023 Additions Adjustments from acquisitions Disposals Transfer from stock 39,977 1,094 8,893 705) 2,395 136 1,085 { 1241 42,483 1,336 io,oii 8291 106 33 Asat31 March 2024 Depreciation As at l April 2023 Charge for the year Adjustments from acquisitions Released on disposals 7,612 624 3,101 1,341 173 1,051 57 37 33 9,010 834 4,185 As at 31 March 2024 Net book value As at 31 March 2024 As at 31 March 2023 The properties detailed above are owned by Pilgrims, Friend Society, Pilgrim Homes Trust and Strathclyde House Trust, which are subsidiaries of The Pilgrim5 Friend Group. Details of cost or deemed c05t of the properties is detailed below and on the following page.. 2024 £000 2023 £000 Pilgrims, Friend Society Freehold property; Bethany Christian Home, Plymouth Ernest Luff Care Home, Walton-on-the-Naze Ernest Luff House, Walton-on-the-Naze Emmaus Care Home, Harrogate Permanent landscape, Ernest Luff Care Home Koinonia Christian Care, Worthing Emmaus House, Whitehaven, Cumbria Carey Gardens, Kirby Muxloe 605 2,265 1,611 889 34 2,015 2,419 1,590 1,162 34 2,033 1.284 9.800 8,549 Strathclyde House Trust Freehold property: Strathclyde House, Skelmorlie Carried forward Page 21

2. TANGIBLE FIXED ASSETS Icontinuedl 2024 £000 2023 £000 Pilgrim Homes Trust Freehold property: Dorothea Court, Bedford Middlefields House Chippenham Great Finborough Evington Home, Leicester Shottermill Home, Haslemere Milward Home, Tunbridge Wells Wantage Home Royd Court, Mirfield Pilgrim Garden5, Evington, Leicester Brighton Home lat deemed costl 4,443 7,281 4,679 2,348 1,719 1,408 1,814 3,867 3,082 4,401 7,258 4.460 2,348 1,564 1,384 1,773 3,458 2,081 31,316 29,191 Homesdale {Woodford Baptist Homes) Ltd Freehold property: Homesdale Housing and Care Home, New Wanstead Brought fonvard from previous page Total properties

3. INVESTMENTS- GROUP Listed Investments £000 Investment properties £000 Total £000 Valuation As at l April 2023 Additions Gift from Homesdale Disposals Revaluation 200 508 1,154 91 862 1,062 508 1,154 As at 31 March 2024 Held by General Funds Restricted funds 1,973 1,973 Historic cost As at 31 March 2024 Page 22

4. INVESTMENTS- GROUP Icontintsedl Investment properties comprisethe following: 2024 £000 2023 £000 At market value: House on Pilgrims, Way, Great Finborough 60 Royd Court, Mirfield Redbourn Land House on Liphook Road, Haslemere 275 207 275 207 37 The investrnent properties were revalued at the open market value as at 31 March 2024 by the previous Director of Property Service5, Andy Walsh ARIBA.

5. INVESTMENTS- COMPANY ONLY 2024 £000 2023 £000 Investment in PFG Trading Ltd Investment in Home5dale (Woodford Baptist Homes) Ltd 43 43

6. STOCK 2024 £000 2023 £000 Stock of flats held for resale (see below) Preliminary costs of new building Stock of books 691 22 1,476 73 strothclyde House Number Cost No £000 Royd Court Number Cost No £000 Pilgrim Gardens Number Cost No £000 Total £000 As at l April 2023 Sold Transferred to fixed assets Bought back 242 131 13101 131 12511 355 131 13731 12} 12351 879 11) {1401 (7391 1,476 1 8231 {1,2551 As at 31 March 2024 Contingent liabilities on houslng stock Under the terms of the sale of properties at Strathclyde House, the Strathclyde House Trust has the right of first refusal when freehold flats are offered for sale and it is the practice of the charity to exercise that right to maintain the ethos a nd atmosphere on the site. The total potential value of the flats not held by the charity at 31 March 2024 is £2.8 million. Under the terms of the sale of lease5 at Royd Court, Pilgrim Homes Trust 15 committed to repurchase lease5 should leaseholder5 cease to be residents. The total potential value of the flats not held in stock at 31 March 2024 15 £3.9 million. Under the terms of the sale of lease5 at Pilgrim Gardens, Pilgrim Homes Trust is committed to repurchase leases should leaseholders cease to be residents. The total potential value of the flats not held in stock at 31 March 2024 is £1.26 million. Page 23

7. DEBTORSAND PREPAYMENTS 2024 £000 2023 £000 Arrears of local authority and residents, contribution Amounts owed from Pilgrim Gardens service charge Amounts owed from Royd Court service charge Amounts owed from Strathclyde service charge Other debtors and prepayments 229 56 251 70 212 15 147 58

8. CREDITORS AND ACCRUALS: amounts falling due wlthln one year 2024 £000 2023 £000 Residents, contributions in advance Short terms loans Trade creditors Taxation and social security Other creditors and accruals 25 115 315 195 165 438 137

9. ANALYSIS OF NET ASSETS BETWEEN FUNDS General Funds £000 Designated Funds £000 Restricted Funds £000 Total Funds £000 2024 Fixed assets Tangible Investments 17,517 1,973 22,972 862 40,489 2,835 Current assets 4,694 8,946 13,640 Current liabilities Total Net Assets 2023 Flxed assets Tangible Investments 7,582 200 1,976 23,915 862 33,473 1,062 Current assets 6,046 12241 7.129 12,951 Current liabllltles Total Net Assets Page 24

10. DESIGNATED FUNDS Brought forward at i April 2023 Net assets giftedl revaluations &transfers £000 Carried forward at 31 March 2024 Income Expenditure £000 £000 £000 £000 2024 Strathclyde House Trust ISLII 2023 Strathclyde House Trust Page 25

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1. FURTHER DETAILSABOUT RESTRICTED AND DESIGNATED FUNDS Pilgrim Homes Fund This heading includes the reserves of Pilgrim Homes and the Pilgrim Homes Restricted Fund which were transferred frorn those charities to Pilgrim Homes Trust on 31 March 2020. Operotionol Assets Equity Fund Established to reflect the value of fixed asset properties owned by Pilgrim Homes Trust which would not be capable of disposal without affecting the ongoing work of the charity. Operational Risk Reserve This fund consist5 of funds required to ensure the continuity of care in the event of a major disruption to the operation of the charity. Property Emergency RepoirFund This fund has been established within Pilgrim Homes to rneet the costs of emergency repairs to that charity's properties. Strothclyde House Trust Fund This was earmarked by trustee5 to represent the value of the assets held within Strathclyde House Trust. It was decided that this was no longer useful and therefore the balance of this fund was transferred to the General Fund. StAlbans and Lucy McNeil Home Funds These funds relate to the receipt of donations and the proceeds of various fundraising activities for the purpose of establishing new homes. Faith in Later Life This represents donations from the Outlook Trust and a number of partner charities for use towards the costs of the 'Faith in Later Life, init13tive mentioned in the Trustees, report. This initiative is in the course of being incorporated as a separate charity and following incorporation the balance of funds held will be transferred to this new charity, Local Homes Project Funds These represent the amounts raised and spent by local homes towards specific locally agreed initiatives within specific homes. Dementio Fund This fund is utilised to asslst in meeting the costs of new initiatives to better look after our residents with dementia, Homes Voluntory Support Funds Homes Voluntary support funds represent donations made by supporters for the purpose of improving care at specific homes. These funds are also available, in the event of a home making a trading loss in a financial year, to reduce the Ioss 5UStained, Covid grontS Thi5 relates to grants receive by local authorities to deal with increased costs of dealing with the pandemic le.g. staff and personal protective equipment). Carey Gardens This represents a donation to fund substantial capital improvements at Carey Gardens, as a supplement to the sinking fund contributions paid by residents. Page 30

2. LEASING COMMITMENTS Operating leases The charitable company's total future minimum lease payments under operating leases at 31 March 2024 were payable as set out below: 2024 £000 2023 £000 Within one year Within two to five years 38 42 50 The operating lease charges for the year were: 2024 £000 2023 £000 Land and buildings Hire of plant and machinery 60 97 The lease over 175 Tower Bridge Road, London expired on 31 December 2014. Since that date the charity has conti nued to pay rent at the existing annual rate of £67,000. The charity is required to give 3 months, notice under Section 27 of the Landlord & Tenant Act 1954 of it5 intention to vacate the premises.

3. PENSION COMMITMENTS The pension cost charge represents contributions payable by the group to the pension funds. There were contributions of £75,000 due to the fund at the period end12023.' £61,000). The Society also makes a small number of ex grotia pension payments to former employees. The annual commitment to make these payment5 has been reducing over the past few years and currently stands at around £3,000 per annum. A few years ago the trustees considered whether to accrue for this liability but, given the amounts payable, the age of those receiving a pension and the complexity of determining an appropriate reserve, no provision was made.
4. CAPITAL COMMITMENTS No capital commitments were due a5 at 31 March 2024.

5. CONTINGENT LIABILITIES A gift of £500,000 was made to Strathclyde House Trust by the Souter Charitable Trust in June 2019. This gift was made subject to a repayment clause which stated that in the event that Strathclyde House was to be di5POsed of by the charity within a period of the ten years commencing 3 June 2019, Strathclyde House Trust would be obliged to repay a proportion of the gift to the Souter Charitable Trust. The amount due to be repaid reduces by £50,000 for each complete year that Strathclyde House is owned by the Pilgrim Friends Group. At the date of these accounts, the maximum repayment due would be £350,000. The Pilgrim Friends Group has no plans to dispose of Strathclyde House. A social housing grant received by Homesdale (Woodford Baptist Homes) Ltd in is repayable in full under certain circumstances such as the sale of the Homesdale property without reinvestment. The total amount received to date 15 £2,548,994. No liability is recognised in the consolidated accounts. Page 31

6. RELATED PARTY TRANSACTIONS Details of tru5tees' and key management personnel and remuneration are disc105ed in note 8 to the financial Statements. There are no other related party transactions.

7. LIFE TENANCY In 2012 the charity was notified of a legacy which included a share of a freehold property, which is subject to a life tenancy. The conditions for recognition of this income have not been met and therefore this legacy is not included as income in the accounts. The estimated value of the legacy is unknown at present.
8. CHURSTON FERRERS OVERAGE The sale of the land at Churston Ferrers included an overage agreement stating that Pilgrim Homes Trust will receive payment if planning permission is granted on the land d isposed of before 2052. POST BALANCE SHEET EVENT Following the year end, a contract for works to the roof of the building at Strath Clyde House Trust Ltd wa5 signed in May 2024. The overall cost of the works is estimated to be £235,000,
9. COMPANY LIMITED BY GUARANTEE The organisation is a charitable company limited by guarantee and has no share capital. In the event of the company being wound up, members are required to contribute an amount not exceeding £1. Page 32

Statutory information DIRECTORS AND TRUSTEES Michael Abbott Ichairmanl Alan Copeman Ivice-chairmanl Andrew Symonds Ivice-chairmanl Bryan Jaryis Ivice-chairmanl Iresigned 31 December 20231 Dr Judy McLaren Genefer Espejo John Edwards Mark Curran Max Robinson Iresigned 24 July 20231 Robin Turnbull (resigned 31 December 20231 Sheila Warnes Sylvia Clovey Martin Hallett (resigned 19 June 20231 COMPANY SECRETARY Robert Fricker REGISTERED OFFICE 175 Tower Bridge Road London SEI 2AL COMPANY NUMBER 07169875 CHARITY NUMBER 1134979 BANKERS Lloyds Bank plc 25 Gresham Street London EC2V 7HN AUDITORS Jacob Cavenagh & Skeet Chartered Accountants 5 Robin Hood Lane Sutton Surrey SMI 2SW KEY MANAGEMENT PERSONNEL The Key Management Personnel of the charity were the Trustees and the members of Senior Management Team whose name5 and responsibilities are listed below.. Stephen Harnmersley Maureen Sim Debbie Buggs Julian Hillman Hugh Lambourne Joshua Field Alexandra Davi5 Chief Executive Officer Director of Operotions Director of Finonce (resigned 9 October2023) Director ofFinance (oppointed 4 December2023) Director of Property Services Director of Humon Resources Directorof Morketing and Communicotions Page 33

Independent auditor's report to the trustees of The Pilgrims Friend Group OPINION We have audited the financial statements of The Pilgrims Friend Group Ithe'parent charity'l and its subsidiaries Ithe 'group'l for the year ended 31 March 2024 which comprise the consolidated Statement of Financial Activities, the consolidated and company's Balance Sheets, the consolidated Statement of Cash Flows and the notes to the financial statements, including summary of significant accounting policies. The financial reporting framework that ha5 been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Finonci(Fl Reporting Standard opplicable in the UK and Republic ollreland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements-. give a true and fair view of the state of the group's and of the charitable company's affairs as at 31 March 2024 and of the group's i ncoming resource5 and application of resources, including the group income and expenditure, for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. and have been prepared in accordance with the requirements of the Companie5 Act 2006. BASIS FOR OPINION We conducted our audit in accordance with International Standards on Auditing IU KI IISAS IUKII 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 fulfi Iled 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 basi5 for our opinion. CONCLUSIONS RELATING TO GOING CONCERN In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perforrned, we have not identified any material uncertainties relating to events or conditions that, individually or collectively. may cast significant doubt on the charity's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors 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 annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report. we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit, or othenvise 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 mi55tatement 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 thi5 regard. Page 34

OPINIONS ON OTHER MATTERS PRESCRIBED BYTHE COMPANIES ACT 2006 In our opinion, based on the work undertaken in the Course of the audit: the information given in the trustees, report, which includes the directors, report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is con515tent with the financial statements. and the directors, report and the strategic report i ncluded within the trustees, report have 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 charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors, report, or the strategic report included with the trustees, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires US to report to you if, in our opinion.. adequate accounting records have not been kept, or retu rns 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. RESPONSIBILITIES OF TRUSTEES As explained more fully in the trustees, responsibilities statement set out in the trustees, report, the trustees, Iwho are a Iso the directors of the charitable company for the purposes of company lawl 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 fina ncial statements that are free from material misstatement, whether due to fraud or error. In prepari ng the financial statements, the trustees are responsible for assessing the charity's ability to continue as a goin g 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 company or to cease operation5, or have no realistic alternative but to do so. AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS We have been appointed as auditor under section 145 and report in accordance with the Act and releva nt regulations made or having effect thereunder. 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 15 a high level of assurance but is not 3 guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial Statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. Based on our understanding of the charity, we identified that the principal risks of non-compliance with13ws and regulations related to charity financial reporting. employment, health & safety and care and we considered the extent to which non- compliance rnight have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011. Page 35

We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries ol management, considering the internal controls in place and discussion amongst the engagement team. We determined that the principal risks were related to.. accounting measurements of property disclosure of capital commitments or provisions recognition of legacy income Iraudulent extraction of cash In response to the risks identified we designed procedures which included, but were not limited to: reviewing third party evidence of investment property valuations agreeing financial statement disclosures to underlying supporting documentation identifying and reviewing jou rnal entries discussions with management and review of legal correspondence reviewing Trustees, meeting minutes evaluating the charity's internal controls There are inherent limitations in the audit procedures described above. The more removed that laws and regulation5 are from financial transactions. the less likely it is that we would become aware of non-compliance. Material misstatements that arise due to fraud can be harder to detect than th05e that arise from error a5 they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. www.frc.org.uklauditorsresponsibilities. This description forms part of our aLtditor's report. USE OF OUR REPORT This report is made solely to the 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 company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. Paul Newton FCA (Senior Statutory Audltorl for and on behalf of Jacob Cavenagh & Skeet Jcs Chartered Accountants statutory Auditor 5 Robin Hood Lane Sutton Surrey SM12SW Date: 2 2 J.I loZLt Page 36