THE PILGRIMS FRIEND GROUP Group Financial Statements For the yearended 31 March 2025 Ifl COMPANY NUMBER 07169875 CHARITY NUMBER 1134979 Contents of the f inancial 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 Independentauditor's report Trustees, report The trustees present their report together with the financial statements of the group for the year ended 3 1 March 2025. The trustees, report incorporates the directors, rèport and the strategic report prepared for the purposes of compa ny law. Thè statutory information is listed on page 33. MESSAGE FROM THE CÉO There is a lot of deta il in our number5, but as in previous years this must not cloud the fact that in an immensely cha Ilengi ng environment, Praise God, we have again delivered very high quality a nd distinctive Christian Ca re and Support to people who want to live in a Christian community. The headline numbers include a round £750k of "one off costs. relating to the closure of the Homesda le ca re home releasing the site for redevelopment and the ongoing costs of our growth and renewa I work. Stripping out these costs, our underlyin g financial performa nce has been strong. l am immensely grateful to my colleagues who make this happen and who are an inspiration to mel The success of Middlefields is a great encouragement to progress our Growth and Renewal Program me, as has been the quality of delivery though our other homes. We still have a lot of work to do to moderni5e our portfolio of buildings, but we are seeing our vision taking sha pe whereby we deliver our mission through ca re homes and housing that generate a financial surplus that we ca n re-invest in helping more people. Our cha ritable income plays 3 vital role in helping us look after people who cannot afford our fees a nd to reach out into the communities a round our homes with help a nd support. Donations and in pa rticular legacies a re also vital to our Growth and Renewal programme. Strong occupa ncy has been a ha Ilmark of the year's performance, and we are probably helping more people live well in older age than at any other time in the cha rity's 218-year history. This is a strong vindication of the trustees, decision to welcom e people into our homes who want to live in a Christian environment and to invest in the strength of our Christian ca re through The Way We Care and Activities and Community Engagement Facilitators for whom we have a Christian occupationa I requirement. The experience of Middlefield5 House is important here as we a re supporting more people overall tha n we did in the Pilgrim Home il replaced, we are supporting more people who would have passed the admissions tests we had in place historically for Pilgrim H omes, a nd we have a richer a nd more vibrant sense of Christia n fellowship as a result. There is also no doubt in my mind that our vision for helping people who want to live in a Christian Community and our concern for older people in the communities a round our homes have been important aspects of attracting Christia ns to our Senior Ma nagement team. Last year the team we established to help other Christian charities foresee the need to be part of a larger group has a Ilowed us to complete the work to ta ke over the running of Bridgemead nursing home in Bath a nd subsequently to welcome Presto n Bethany Ca re into the Group Itransaction date l April 20251. 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. MISSION REVIEW Our group charita ble objects a re to adva nce the Cliristia n faith a nd meet the spiritua l and physical needs of older people. This work is increasingly needed as the numbers 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 leading fulfilled lives. This means that older people know Jesus, have their physica I needs met, and receive the Christian encouragement. ca re. and support that they need to be fruitful and productive, a nd live with dignity. Our goals are to have a growing network of residential ca re homes and independent living housing schemes through which more people receive excellent Christian ca re a nd support, a nd alongside which we will develop loca I partnerships between our homes, housing, and churches to encourage work a mongst older people in the community. Page I Our values We talk regularly about our values with all our stakeholders and know from our twice-yearly stsff surveys that they are embedded in the way that we work. Compassion is at the he3rt of how we interact with people. We offer loving care through relationships based on empathy respect a nd dignity. We get alongside people and show grace to those who a re struggling and do what we ca n to ease people's burdens. We find new ways to ca re well for older people. Community is central to human flourishing. We are a community of people who share life together, celebrating victories a nd supporting each other during challenging times. We sha re 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 a bout challenges a nd looking for solutions. We listen respèctfully to each other and when we disagree, we do so without conflict, and we use mista kes as opportunities to lea rn and grow. Excellence is what we strive for in our work. We strive for excellence. ma king sure that we go a bove a nd beyond in our work. We do go the extra mile to do things as well as we possibly ca n. We steward our resources ca refully a nd ta ke opportunities to get better at the work we do. Our work and culture We have a bespoke a pproach to ca re which sets us apart in our provision of ca re for older people known as The Way We Ca re. At the hea rt, this approach is the understanding that every person living with us is made in the image of God a nd therefore must be treated as a va lued individual who has things to contribute to the life of the community within which they live. As pa rt of The Way We Care we call those who live W￿th us 'family members" as we create communities which a re rooted in the idea of being a specia I kind of family together. As each new ' la mily mem ber" comes to live with us their preference5 and persona I history is gathered a nd informs all aspects of their care. It a Iso impacts the kind of activities that a re delivered in the home so that each person feels comfort3ble a nd welcome. An important aspect of The Way We Care is about how those living with dementia can flourish in our homes. We employ people ¥vhose role is to spend time with those who live with us, whether that's 30 seconds holding a hand and singing a familiar song or hymn, or five minutes looking at a family photo album. We als0 employ The Way We Care Leads who have responsibility for embedding this approach throughout each home, helping carers to ta ke person-centre approach, rather than a task-centred a pproach, to the delivery of care. Our Activities and Community Engagement IACEI Programme has developed well, a nd we have been able to welcome more volunteers into our homes and make more connections with the communities a round our homes. This has meant that visits from schools, churches, and other groups such as choir5 are a regular function of life in our homes a nd that relationships wi th churches a nd others in the communitie5 around our homes are stronger. Each volunteer that we train is better equipped to work well with older people in their churches a nd neighbourhoods. The quality of our care remained high during the year with all CQG and Local Authority reviews completed finding good ¢y better ca re, a nd our own interna I monitoring and carehome.co.uk reviews saying the same. Two of the homes that joined the Group with ' Requires Improvernent" assessments from CQC Still have that rating but they have benefitted from ou r system s a nd training, a nd we would expect better assessments as a nd ivhen CQC visit. Our staff People a re the heart of what we do with our supportive and caring Christia n communities not only providing 3 wonderfu I care and support for older people but a Iso creating 3 great working environment for our staff. We have continued to invest heavily in tra ining, pa rticularly in our care staff. The Way We Care is embedded in our ca re homes through specialists known as The Way We Care Leads. Our Activity and Community Engagement Facilitators have been trained a nd equipped to start sharing some of what we know a bout living well with older people with churches a nd others in Page 2 the communities around our homes. During the yea r we developed The Way We Care by emphasizing that its delivery requires ancilla ry staff in living well with our fa mily members lin what is called a "whole home approach"), and we have more closely aligned the work of our Activity a nd Com munity Engagement Facilitators with our The Way We Care Leads. We have held the first of our "fa mily matters" groups to extend our scope to include more intentiona Ily the relatives of people living with us and planning is well under way for "community cafes" where we open our facilities to people who care in the community. We listen to our colleagues through six monthly staff surveys 3 nd follow up staff forums. We are pleased that our colleagues remain highly comm itted to their work and very engaged with the cha rity seeing us as an employer that helps them give of their best. Our Staff vaca ncies rates have reduced significa ntly over the yea r, and most of our operations are effectively fully staffed. This has been helped by recruits from overseas, all of whom have been referred to us by existing colleagues or others that we know. We have not used agencies to recruit and so we can be sure that our recruitment a nd employment of these colleagues has been to the highest ethical sta ndards. We have continued to invest in our leaders through our annual Senior Management Team conference and a leadership development progra mme for those who lead teams. We encourage our managers to take spiritual development days to strengthen their capacity to support the spiritual life of their homes and housing and we now have a sabbatica I programme intended to provide a measure of refreshment and renewa I to long serving management colleagues. Growlng for the futltre We sense a calling to see our unique model of Christian care more widely available around the UK and this vision is encapsulated in what we call our Growth a nd Renewal Programme. The Way We Care is at its most powerful when the building we have is designed to support its delivery as is the case at Middlefields House in Chippenham, We have been delighted to see how this building, opened in 202 1, with four family sized households of twelve people has led to fulfilled living of the highest order. The home has also exceeded our financial business case assumptions a nd is producing a surplus that allows us to invest the qua lity of what we do in Chippenham and else¥vhere. During the year we have made multiple approaches for sites close to some of our older buildings seeking to replicate the success ol the renewal that we managed in Chippenha m. In Worthing 3nd in Harrogatewe have been ma king approaches to purchase existing homes that are newer and have a strong longer-term potential as this is the quickest route to better buildings to which we would hope to move our people. In the year we have also seen growth as we have welcomed into the Group the transfer of a nursing home in Bath 18ridgemeadl and on l April 2025 Preston Bethany Care Limited joined the group (Bethany House care homel. We were pleased to be a ble to make a start on improving the flood defences for Bridgemead from the River Avon. and ffom l April we will be negotiating with Preston City Council seeking to tra n5fer the leases for Bethany House to PFS so that we can close the Preston Bethany Care charity. In terms of new buildings, we have submitted for pla nning a scheme for a new ca re home on the site of the Homesdale care home (Wanstead. London) that we had to close in the year. We are in discussions rega rding the purchase of J new site in the South Coast area that we hope will strengthen our representation in that are3, and we shared with Bedford churches a nd the residents of Dorothea Court our desire to find a site for a new care home a nd housing provision in the area. We have also written to other Christian care homes that are not part of a la rger groLtp seeking to provide encouragement, particularly at trustee level. We remain open to the gifting of assets and operations to the Group where we ca n enhance governa nce, operational performance and susts in the ongoing delivery of Christian care. 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 1050 volunteers working in churches with older people, known as Church Champions. In communities where we do not have care homes and hoLJsing then we wa nt to see active Faith in Later Life Church Cham pion s pursuing our charitable objects. 'Christians in Care,, our initiative that supports Christians working in secula r care settings has grown well. We are pleased to be helping a Imost 200 carers to keep going as we encourage them in their work to advance the Christia n fa ith a mongst older people. Page 2 Raising our profile Our engagement with press, both local a nd nationa I, h35 continued with significant media coverage showcasing the value of older people and what it is like to live with us. The Sunday service broadcast from Middlefields House on Radio 4 was particularly successful in both these regards. Our magazine, newsletters and prayer letters continue to be regarded highly. and the numbers of subscribers a re increasing. We la unched ' Empowering Comm unities to Care" at events in the summer and autumn alongside other leading charities and we have been encouraged by the level of support that our recommendations have attracted for a grassroots, church and community led strand in the drive to join up the provision of care a nd support for older people. We will continue to represent these ideas to Ba roness Casey'5 review of adult social ca re. Alongside this were regula r appearances by Louise Morse and Stephen Hammersley on Christian radio including TWR, UCB nd Premier Radio, all of which highlighted our work among older Christians. Funding challenges Local Authority funding has not kept pace with the increases in care costs driven by factors such as employer national insurance increases (from April 251, increased living wages and significant cost inflation. This means that the difference between Local Authority 3nd private pay rates has grown dra niatica15y over recent years and erodes our financial surplus. As we are not prepared to reduce the quality of our delivery it is ha rd to see us being able to carry on admitting people with n o constraints on the proportion of people funded by local authorities without top-ups. We continue to receive generous charitable contributions, particularly in the form of legacies, that we plan to invest in new provision for older people. FINANCIAL REVIEW During the yea r ended 31st of March 2025 the group made a net surplus of £2,647,000. This is after the exceptional surplus a rising from the bringing of Brid8e Ca re Limited into the Pilgrims Friend Group. The key measure of performance used in the charity's ma nagement accounts is its ea rnings before interest, tax, depreciatio n, amortisation, a nd rent IEBITDARI. EBITDAR for the year is reported as £3,614,000. These headline numbers are important as they reflect the total income for the group a nd the total costs, but 3S they include the exceptional income a nd the cost5 that relate to our planned acquisition of other homes a nd housing, they don't reflect the financial performance of what night be ca Iled the underlying work of the group to deliver ca rea nd support to older people through our home5 and housing and in the community. Our homes and housing Schemes benefitted from good cost control and strong occupancy as we recovered from post pandemic lows and were in surplus overall. Only Homesdale care home which lost £316,000 in the fiscal year was in in significant deficit owing to low occupancy and unsustainable costs. This home was closed in Dec 24. These surpluses were not, however, sufficient to cover the costs of acquiring new home5. looking for new sites on which to build new homes. the costs of our work in the com munities around our home5. and the costs of welcoming everyone into our homes even if local authority fees a re less than our costs of caring. That is why we need and va lue legacies a nd donations that amounted to £309,000 in the year. The financial results empha5ise the need to make progress with our growth and renewal programme to invest in new buildings that will support care and housing work that will be more firTrancially sustainable, similar to our home in Chippenham that ivas opened in 2021 and replaced an older building that was struggling fina ncially. 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 15 another reason donations and legacies matter to us. Page4 STATUTORYINFORMATION Ourobjects and how we seek to fulfll them The Pilgrims Friend Group is a non-trading charitable company which is the sole corporate member of Pilgrims, Friend Society, Pilgrim Home5, Homesdale (Woodford Baptist Homes) Limited, Bridge Care Limited and Pilgrim Horlles Trust. In turn, Pilgrims, Friend Society is the sole corporate member of Strathclydo House Trust. The governing document is the a rticles of association. The Pilgrims Friend Group exists to research and understand the context for the delivery of Christia n care, and it sets policies and provides direction for the charities in its group. The Board of this cha rity makes significa nt decisions for the running of the group. All the Members of the Boa rd of Trustees ofThe Pilgrims Friend G roup a re also on the boa rd of one or more of the Group's subsidia ry entities. The trustees of the Pilgrims Friend Group a re distributed so that we have the ca pacity to ma nage conflicts of interest while transacting business between charities. Responsibility for the day-to-day operations of the charity is delegated to the Chief Executive and Senior Ma nagement Tea m of Pilgrims, Friend Society which has been the main operating charity for the group. The pay of Key Ma nagement Personnel is reviewed a nnua Ily and norma Ily increases in accordance with average earnings bea ring in mind charities of compa rable size a nd activity. Pilgrims, Friend Society and The Pilgrirn Friends Group have identical objects with the primary object being 'the dva ncemeiit of the Christia n faith and the relief of poverty, sickness, disablement, old age and infirm ity for the public ben efi t to the glory of God., Strathclyde House Trust has similar objectives 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, disa blem ent, and infirmity of older people of the Protestsnt Christian fa ith including by the provision and ma intenance of residentia I care and housing. Pilgrims, Friend Society advances the Christian faith by operating Christian care and housing for older people and by producing resources that inspire, encourage, a nd equip others in their work of caring for older people. Pilgrims, Friend Society operates all our homes a nd schemes in the group Homesda le Iwoodford Ba ptist Homes) Limited, Bridge Care Limited a nd Strathclyde H ouse Trust a pa rt, in the same way to ensure the same qua lity of Christia n care and to give us economies of scale in our operations. Homesdale (Woodford Baptist Homes) Limited, 8ridge Care Limited and Strathclyde House Trust remain asdistinct lega l entities but follow policies and procedures derived from those in place with i n Pilgrims, Friend Society. Pilgrim Homes Trust land Pilgrim Homes before it) fulfils its objects through the ownership of care homes and housing schemes which a re operated on its behalf by Pilgrims, Friend Society. Pilgrim Homes Trust ¢5 the group charity that built the first of our Renewa I Programme homes at Chippenham Imiddlefields Housel. During the year we brought Bridge Care Limited, a charity, into the group through a"Grouping Agreement" that also involved their committee members standing down in favour ol people drawn from the Pilgrim Friends Group Boa rd. The Annual Review section of this report sets out how our work provides accommodation a nd ca re 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, 5ickne5s, or disa blement. Our charities advance the Christian faith by ensuring that beneficiaries have every opportunity to pursue their Christia n lives. Regula r devotions, opportunities to pray a nd be supported in prayer, Christian services, Bible studies, opportunities to sha r e fellowship and express Christian beliefs and va lues through crafts a nd activities are availa ble in all our home5 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, Homesda le (Woodford Baptist Home51 Limited and 8ridge Care Limited la11 of which TPFG is the sole mernberl and Strathclyde House Trust lof which PFS is the sole member) provide a safe, secure environment and a Christia n com munity with opportunities for fellowship with like-minded Christian people. Page 5 Public benefit The charity's trustees have considered the guidance regarding public benefit when considering and planning their objectives a nd activities for the year. Employment pollcies Pilgrims, Friend Society, Homesdale (Woodford Baptist Homes) Limited, Bridge Ca re Limited a nd Strathclyde House always selects staff colleagues based on their ability to do the job on offer based on a ' Person Specification" for each post. We are fully compliant with Equalities legislation and recognise our obligations, under Disability Discrimination legislat￿on, to consider reasonable modifications to allow people living with a disa bility to ta ke up employment. We have a n occupationa I requirement for some posts to be filled by Protestant Christia ns. who aEree with our doctrinal basis, to maintain our founding Christian ethos. These issues are dea It with fully under the charity's Equa l Opportunities policies. All our hornes hold regular meetings for all colleagues which are designed to impart information regarding developmen ts within the charity and 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 witli our staff colleagues on all matters relating to their terms and conditions of employment. We survey our staff colleagues twice a year foSlowed up by forums open to all. The managers of our homes and schemes meet at least twice a year a5 the "senior team" and one of these meetings includes discussion with the trustee5 as to the future direction of the Society. Significant changes to the work of the Society are typica Ily preceded by a consultation with colleagues in our homes a nd schemes a nd our volunteers sometimes involving a visit by a member of the executive team and a trustee. We encourage colleagues, involvement in the Society's performa nce and their awa reness of the factors affecting our work through a monthly prayer bulletin that is posted on the noticeboard s in all our homes and schemes. Volunteers Our volunteers a re avital aspect of our work. As well as raising some of the finances we need, they also make ihem go much further through their volunteering. We are pa rticularly 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 Commission requires we state a number for these volunteers, and we estimate this to be around 450 (was 425 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 Ma nagement Personnel of Pilgrims, Friend Society The following charities= Pilgrim Homes (charity no. 2422661 Pilgrims, Friend Society (charity no. 1045920, compa ny no. 30270711 Pilgrim Homes Trust Icha rity no. 1183226, company no. 116856241 Strathclyde House Trust Icharity no. SC025550, compa ny no. SC1698481 Bridge Care Limited Icharity no. 299400, compa ny no. 020012461 Homesdale (Woodford Ba ptist Homes) Limited Cooperative & Community Benefit Society No 13406R PFG Trading Limited 3 limited company Aged Pilgrims, Friend Society Trust Limited Homes Trust. 3 limited company which holds title to the properties owned by Pilgrim Page 6 Investment policy These accounts include £0.86 million of investments which 3re properties owned by Pilgrim Homes which are not suitable to be let to beneficiaries ofthe Charity a nd a re therefore let as investments to third parties. Some of these properties a re close to, or indeed within the curtilage of our care homes and such properties a re therefore difficult to dispose of a nd are, where possible, let to staff members. Given the need for cash, the trustees ta ke the view that it is better to reta in the majority of the cha rity's funds in bank deposits, rather than investing in other types of assets. Prlncipal sources of funding The group expects to continue to raise most of its income from fees cha rged to residents of its homes and by cha rges for its hoLJsing. The Growth and Renewal Programme will be funded by borrowing, social investment. the sale of some property assets and donations. Accommodatlon charges policy As with the other related charities, this charity sets the level of charges for accommodation in its ca re homes based on loca I ma rket conditions. It does not discriminate aga inst older Christia ns who may not have the resou rces to meet the costs of their own care, and we accept residents whose fees a re met on their behalf by loca l authorities, notwithstanding the shortfall that then arises. In these circumsta nces we seek a 'top-up' from fam ily or friends where possible. Fundralslng The charity does not em ploy outside or commercial fund-raisers. We make sure that our supporters a re kept up to date with our work and that they ca n 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. Rlsks and regulations The cha rity maintains a comprehensive register of risks which is reviewed by the Key Ma nagement Personnel at their monthly meetings a nd by trustees at every trustee meeting. The key developments in the year that we have responded to have been.. State funding risks as central government policies have ma ndaled cost increases that loca l a uthorities do not have the budget to afford,. cyber risks have increased as technology becomes ever more central to our operations. challenges to staffing as access to overseas colleagues has been constrained,. increased fire-safety actions as some of the lessons learned from Grenfell have rippled out across the sector. The risks reviewed on our risk register with the highest ratings are in the following table. Page 7 Gi?wL* & RcrcwJl at risk 1￿cauSe d incru%in8 ¢￿ts a￿1 .lJF ￿ tyjing ylrs or capxily tytsues Intu r￿Ed$£w￿rn￿￿ aTranrmNt3e￿lthShets f￿ the IJ finwce necta5￿ LKlaYt SmE253 JThJ rronilJirT. 2Jl2G t￿d¥C I tx lov 4 SUTP -ry ol prwrtif5 Loptsinl vthL¥E 10 m¥ main are pr￿"¢ Th- GiciwLh & Pt4ryjrr￿￿. rnanJSernL￿I d vrrvsir Jbkm Ctss I Infi)iioi IJ essuth Js Nll ry)L matchLTd 4dLJI Sy.iJ C¥e ?￿49. hun Inc￿nE al￿/￿[ driYEs up tt>51 xruiin¥ of IirkirxiJl Ing4.'mert Wilh Ncf tg wc%lrt t? MitT6aLl[￿ is tgathii fewer IXJ l JuLtDril lurn*2d lam I￿2 Jre brtlcr Ll*nxtLW ￿r4 e bk¢ Lh¥ u a mw CQL. VaEJw Talrh ¥r bLrt iurnLbYr slim h"glL olslJll LW84JiriEni to r4￿￿£1￿rn. S to relm #all S ty t=CTUtI Chr¥LiJn ltsmc hoLUi rbhign*n- LYbo¥r mJikt l 4L TKY Stall oijts Jntj IJ and fetruti ￿ well J5 J icrtLSi widc IhJbl=T￿e Lhai Lren mrL%a Lcd by rttTuILrrrn from ihe ¥vpJxJs Jrnl IIA man RJnsrnre Jithct5 We rrwe P￿1.￿1￿11L. t5 Ur￿¢¥ Jjviz Iffxn Sknrp AdJpLJ ond new 1*•4 tyllT. Tfwry ￿ c)6v 5eaTILy IS UrKl¢rtakL￿ *•t fKwin6 Cybu ltsenuots rtifuL>tin lone sile is a&Ledit￿l. Takn ID6tLhw Lheje ryuaure5 red￿¢ JttJf* Jrnl the retxry tur￿. Cy Ltr.alt&k rythTSQPLYJLx*t& %ins dula FJiluW¢ lo sThYrn8wwp clhiriLiEs as XPJi#Le AnrwJl fc4iew. iTrCTtJJ24 J3wp iff£fexescLyTpkn'¢v witli rcieirt uiJrLpys Reserves The Cha rity holds funds of £57,602,000 at the yea r end. Restricted funds account for £ 33,922,000 of this, although the majority of these reserves 1£5,705,0001 are part of the Pilgrim Homes restricted fund that can be used to fund operational costs of a proportion of the operating entities Ithe Pilgrim Homes). Of the unrestricted fund5, £15,583,000 could only be rea lised by disposing of tangible fixed assets or programme related investments. This mea ns that the free reserves Ithat is, the part of the charity's unrestricted funds that is freely ava ilable to spend on any of the charity's purposes) is £8,097,000 against a target of £1,000,000. Including the Pilgrim Homes restricted fund to this gives total accessible reserves of £13,802,000. Trustee recrultment and tralnln8 Trustees are appointed at a board meeting following a nomination process. Candidates must meet a set of specificatio ns concerning persona I competence, specialist skills, ava ila bility, and Christian belief. Once the Board and new trustee decide to proceed with a formal appointment there follows an induction period to familiari5e 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 allairs of the charity, key operationa I method5, and the current strategic plan. Trustee performa nce is subject to an annua I review by the Cha ir a nd a collective self-appra isal is also undertaken. Sertion 172 statement The directors consider the key sta keholders of the group to be the people living in our homes and schemes and its employees. In their deci5ion-making the directors consider both the short- 3nd long-term impacts. The directors promote the success of the group for the benefit of its sta keholders by: considering the likely consequences of strategic and operational decisions in the long term rewarding employees, performance and encouraging their personal development ma nagernent briefings development reviews health and well-being and 50cia l initiatives a re used to engage with employees. providing an excellent service to our customers that 15 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 standa rds of business conduct by specifying values and a code of conduct for staff. The impact of the group's operations on Page 8 the community and environment is considered when planning new sites. Streamlined Energy & Carbon Reporting None of the entities within the group meet the requirements at an individual level for reporting. STATEMENT OFTRUSTEES, RESPONSIBILITIES The trustees (who are also directors of The Pilgrims Friend Group for the purposes of corllpany lawl are responsible for preparing the Trustees, Report lincorpor3ting the directors, report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102.. The Finoncial Reporting Stondard opplicable in the UK and Republic of Irelond Iunited Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepa re financial statements for each financia l year which give a true a nd fair view of the state of affairs of the charitable group and of the income and expenditure of the cha ritable group for that period. In prepa ring these fina ncial statements, the trustees are required to.. select suitable accounting policies a nd then apply them consistently, observe the methods and principles in the Cha rities SORP, make judgments and accounting estimates that a re reasonable and prudent, state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements, a nd prepare the fina ncia I statements on the going concern basis unless it is inappropriate to presume that the cha ritable group will continue in bLJsiness. The trustees a re responsible for maintairiing proper accounting records which disclose with reasonable accuracy at any time the financial position ol the charitable group and enable them to ensure that the financial statements comply with the Compa nies Act 2006. They are also responsible for safeguarding the assets of the cha ritable group and hence for ta king reasonable steps for the prevention and detection of fraud and other irregularities. STATEMENT OF DISCLOSURE TO AUDITOR So far a s each person who was a trustee at the date of approving thi5 report is awa re, there is no releva nt audit information of which the charity's auditor is unaware. Additionally, the trustees individually have ta ken all the necessary steps that th ey ought to have taken as trustees to make themselves awareof all relevant audit information and to esta blish that the charity's auditor is aware of that information. AUDITORS Xeinadin Audit Limited were the charitable company's auditors during the year and have expressed their willingness to continue in that capacity. Approved by the trustees and signed on their beha If by.. J Edwards Trustee Date.. 17 July 2025 Page 9 Consolidated statement of financial activities (incorporating the income and expenditure account) For the year ended 31 March 2025 2025 Rest- tricted Funds £000 2024 Re5t- tricted Funds £000 Unrest- ricted Funds £000 Unrest- ricted Funds £000 Total £000 Total £000 Note Income from: Donations a nd legacies Investments Charita ble activities Other income 3,364 406 8,899 io 237 50 13,918 3,601 456 22,817 io 9,654 126 9,846 125 387 41 9,592 10,041 167 19,438 125 Total income 751 020 Expenditure on; Ra ising funds Charitable activities 42 45 33 41 Total expenditure 20 Net gains/l105sesl on investments 118 Net incomellexpenditurel 1,522 1,125 2,647 8,214 875 9,089 Transfers between funds 17 Net movement In funds 1,505 1,142 2,647 8,215 874 9,089 Reconclllation of funds Tota I funds brought forward Total funds carried forward All of the activities a re continuing. There were no recognised gains or losses other tha n those stated above. The notes on pages 14 to 32 form part of these fina ncial statements. Page 10 Consolidated balance sheet As at 31 March 2025 2025 £000 2024 £000 Note £000 £000 Fixed assets Tangible assets Investments io 42,214 40,489 li 43,076 43,324 Current assets Stock Debtors and prepayments Cash at bankand in hand 13 14 1,527 1,433 713 4,991 16,723 13,640 Creditors.. Amounts fa Iling due within one year 15 Net current assets Total assets less current liabilities Net assets Funds.. Unrestricted funds Restricted funds (including revaluation reserve of £0.528m12024'. £0.528mll 16 16,17 23,680 22,175 18 Total Funds The financia I statements were a pproved by the Trustees on 17 July 2025 and signed on their behalf by: J Edwards Trustee Company Registration No.. 07169875 The notes on pages 14 to 32 form pa rt of these fina ncial statements. Page 11 Company balance sheet As at 31 March 2025 2025 2024 Note £000 £000 £000 £000 Fixed assets Investments 12 Total assets less current liabilities Funds.. Unrestricted funds Restricted fvnds 10,464 7,651 Total Funds The company's net income for the year was £2.813,00012024'. £7,608,000). The financia I statements were approved by the Trustees on 17 July 2025 and signed on its beha If by: J Edwards Trustee Com pany Registration No.. 07169875 The notes on pages 14 to 32 form part of these fina ncial statements. Page 12 Consolidated statement of cash flows Forthe year ended 31 March 2025 2025 £000 2024 £000 Cash flows from operating activities Trading and donations Net income Depreciation Gift of Cumbria Emmaus net assets excluding cash Gift of Homesda le net assets excluding cash Gift of Bridge Care net assets exc14Jding cash Decrease in legacy debtors Investment income included in investing activities Lossllgainl on disposa l of fixed assets Adjustments to fixed assets Movement in fa ir value of investments Net cash provided by trading a nd donations 2,647 1.171 9,089 834 11,1031 16,2081 12,5951 2,475 14561 160 { 691 2,003 1 1671 26 71 33 Working Copltol movements Ilncreaselldecrease in housing stocks Transfers from stock to ta ngible fixed assets Decreasellincre3sel in debtors excluding legacies Increase in creditors Net cash provided byllused inl working capita I movements 8141 1 1181 1,083 188 339 843 11,2261 1 411 Net cash provided by operating activities Cash flow5 from Investlng and financlng actlvltles Tangible fixed assets Payments on additions of tangible fixed assets Proceeds on disposal of ta ngible fixed assets Net cash lused inl ta ngible fixed assets { 9971 32 11,3361 Fixed asset investments Investment income received Payments on additions of fixed asset investments Proceeds on disposal of fixed asset investments Net cash provided byllused inl fixed asset investments 456 167 1 5081 117 Net cash provided byllused inl investing and fi nancing activities 11 1561 Net cash inflow 5,827 3,137 Cash and cash equivalents at l April 2024 Cash and cash equivalents at31 March 2025 Page 13 Notes to the financial statements For the year ended 31 March 2025 ACCOUNTING POLICIES The company is registered as a cha ritable compa ny limited by guarantee incorporated in England and Wales and is governed by its Memorandum a nd Articles of Association. Its registered office is 175 Tower Bridge Road, London SEI 2AL. The principal accounting policies adopted, judgements a nd key sources of estimation uncerta inty 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 Fina ncial Reporting Sta ndard applica ble in the UK ènd Republic of Ire13nd" 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 cha rity. Monetary a mounts 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 certa in investments and financia l instruments at fair value. Ib. Consolidatlon The consolidated financial statements combine the results of the charity and its subsidiary undertakings which are asfollows.. Name The Pilgrims Friend Group Activities Parent charity with no income or expenditure of its own and just group investment assets Operation of care homes a nd sheltered accommodation Pilgrims, Friend Society Pilgrim Homes Iformerly Aged Pilgrim5' Friend Society) Operation of care homes a nd sheltered accom modation Pilgrim Homes Trust Operation of care homes a nd sheltered accommodation Strathclyde House Trust Operation of sheltered accommodation PFG Trading Limited Trading activities connected with the group Homesdale Iwoodford Baptist Homes) Ltd Operation of ca re homes and sheltered accommodation Bridge Care Limited Operation of ca re home The transactions and ba lances of the subsidia ry underta kings are included in the consolidated accounts on a line by line basis with intragroup tra n5actions eliminated on consolidation. Where the charitable company has been installed as sole trustee of a cha ritable subsidiary during the period the fair value of the assets and lia bilities brought into the group is recognised within volunta ry income. A separate Statement of Financia l Activities for the charity itself is not presented because the charity has taken adva ntage of the exemptions afforded by Section 408 of the Companies Act 2006, It. Going concern At the time of approving the fina ncial ststements, the trustees have a reasona ble expectation that the compa ny has adequate resources to continue in operational existence for the foreseeable future. Thus, the trustees continue to adopt the going concern b3515 of accou nting in preparing the financial statements. Page 14 ACCOUNTING POLICIES (continued) Id. Tangible fixed assets Fixed assets are recorded at historic cost. Expenditure on existing properties is capitalised when works result in an enhancement of economic benefits of the asset. 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 15 rele3sed from the asset and recognised as a loss on disposa l. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost or valuation, less estimated residual va lue, of each asset over its expected useful life. The following rates are used on a straight-line basis: Land Buildings Roof Electrics Windows, doors, heating and plum bing Bathrooms and lifts Kitchens sheltered Boilers Kitchens residential Furniture a nd equipment - sheltered H ard landscaping Motor vehicles Computer equipment 100 years 70 yea rs 40 yea rs 30 years 20 years 20 years 15 years 10 years 10 years 5years 4 years 4 years le. Investments Investment properties are measured at fair value and comprise properties, all owned by Pilgrim Honies Iformerly Aged Pilgrinis, Friend Society) which are not suitable for occupation by beneficiaries of the charities within the group and are therefore let on commercia I terms to either staff members or third pa rties. Listed investments a re stated at fair value. All investments are revalued every year with the investment gains or losses shown in the Statement of Fina ncia l Activities. If. Income Housing and care income is recognised on the basis of the period that the service was provided to the resident. Rental and ancilla ry income is recognised on the basis of when the property or service was provided to the resident. Voluntary income and donations lincluding legacies) are accounted for once the charity has entitlement to the income, it is probable the income will be received a nd the amount of income receiva ble ca n be reliably measured. where material 35sets a re donate d to the compa ny for its use, these are capitalised at the estimated ma rket 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 relia bly. Ih. Expenditure Expenditure is accrued as soon a5 a liability is considered probable, discounted to present value for longer term liabilities. Charita ble expenditure includes all SLJpport costs in respect of the company'5 activities. li. Govemance costs This comprises expenditure on compliance with statutory lega I requirements and is included in charita ble activities. Page 15 ACCOUNTING POLICIES Icontinuedl lj. Fund accounting Genera I funds a re urnrestricted funds which a reavailable for use at the discretion of the Trustees in furtherance of the general objectives 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 pa rticular purposes. The a im and Ljse of each designated fund a re set out in the notes to the financial statements. Restricted funds are funds which are to be used in accorda nce with specific restrictions imposed by donors. The aim a nd use of each restricted fu nd are set out in note 20 to the financial ststements. Ik. Leases Renta Is paya ble under operating leases a re dealt with on a straight-line basis over the lease term. Tota I lease repayments have been disclosed over the remaining life ol the lease. 11. Pensions The company operates a defined contribution pension scheme and the pension charge represents the a mounts payable by the company to the fund in respect of the year. Im. Stocks Stocks are stated at the lower of cost a nd net realisable va lue. In. Debtors Debtors are included at the settlement amount due. Prepayments a re valued at the amount prepaid. lo. Cash and cash equivalents Cash at ba nk a nd 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. Casli equiva lents on deposit includes cash on deposit with a maturity of over three months. Ip. Creditors and provisions 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 a nd the amount due to settle the obligation ca n be Measured or estimated reliably. Creditors a nd provisions are recogni5ed at their settlement amount. Concessionary 103ns are included at historic cost. Iq. Financial instruments The charity only has financial assets and liabilitie5 of a kind that qualify as basic financial instrument5. Basic financial instruments are initially recognised at tra nsaction value a nd subsequently measured at their settlement value. Page 16 DONATIONS AND LEGACIES Unrestrirted Funds £000 Restricted Funds £000 Total 2025 £000 Total 2024 £000 Donations Net assets gifted by Cumbria Emmaus Net assets gifted by Homesdale Net assets gifted by Bridge Ca re Legacies 342 io 127 469 io 474 1,500 7,608 2,706 306 107 2,813 601 INCOME FROM INVESTMENTS Unrestricted Funds £000 Restricted Funds £000 Total 2025 £000 Total 2024 £000 Bank interest Rental of investment properties Other interest 406 412 44 127 35 406 50 456 167 INCOME FROM CHARITABLE ACTIVITIES Unrestricted Funds £000 Restricted Funds £000 Total 2025 £000 Total 2024 £000 Ca re fees Housing income Extra Care Housing lease sa les 8,308 342 249 12,821 817 21,129 1,159 529 17,662 1,079 INCOME FROM OTHER SOURCES Unrestricted Funds £000 Restricted Funds £000 Total 2025 £000 Total 2024 £000 Gain on disposal of tangible fixed assets io 12 Page 17 EXPENDITURE ON RAISING FUNDS Unrestricted Funds £000 Restricted Funds £000 Total 2025 £000 Total 2024 £000 Publicity and deputation 42 45 41 EXPENDITURE ON CHARITABLE ACTIVITIES Unrestricted Funds £000 Restricted Funds £000 Total 2025 Total 2024 £000 £000 Housing Care Cost of Extra Care leases sold Education and tra ining Ra ising awareness General support costs 123 9,112 251 88 90 610 9,495 280 733 18,607 531 88 90 I,ooi 17,340 683 305 144 10,618 12,413 23,031 19,899 Depreciation Loss on disposal 511 660 1,171 834 li Page 18 4 O co mm m CO￿ 4 1 Ln 4 44 V) f4 e4 ¢J o) in LL