Company registration number.. 07540805 Charity registration number.. 1141415 Age UK South Cumbria Ltd known as Age UK South Cumblla Iformerly Age UK South Lakeland) {A company limited by guarantee) Annual Report and Financial Ststements for the Year Ended 31 March 2025 Slables Thompson & Briscoe Chartered Accountants & Statutory Auditors Lowther House Lowther Street Kendal Cumbria LA9 4DX Age UK South Cumbria Ltd known as Age UK South Cumbria (formerly Age UK South Lakeland) Contents Reference and Administrative Delails Trnslees, Report 2to9 Independent Audwtors, Report 10t012 Statement of Financial Activities 13to14 Balance Sheet 15 Notes lo the Financial Statements 16to38 Age UK South Cumbria Ltd known as Age UK South Cumbria (formerfy Age UK South Lakeland) Reference and Administrative Detalls Chair C M Twist Chief Executive Officer P Whiteley Senior Management l Leadership H Kilching. Deputy Chief Executive Team M Kitchen. Finance Manager G Hartley, Head of Retailllncome Generation ChaTity R8gistration Number 1141415 Company Registration Numb8r 07540805 The charity is incorporated in England. 17 Finkle Slreei Kendal Cumbria LA9 4AB Registered Offic8 Auditor Stables Thompson & Briscoe Chartered Accountants & Statutory Auditors Lowther House Lowlher Street Kendal Cumbria LA9 4DX Sollcitors: Renshaws 28A Finkle Street Kendal Cumbria LA9 4AB Bankers Barclays Bank PLC 9 Highgate Kendal CLtmbria LA9 4DF Page 1 Age UK South Cumbria Ltd known as Age UK South Cumbria (formerly Age UK South Lakeland) Trustees, Report The trustees. who are directots for the pury)oses of company law, present the annual report together with the financial statements and auditors, report of the charitable company for the year ended 31 March 2025. The financial statements have been prepared In accordance with the accounting [￿l¢leS set out in notes to the accounts and comply with the charity's governing document. the Charities Act 2011 and Accounling and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting St8ndard applicable in the UK and Republle of Ireland published in October 2019. Objeclives and activltles Objects andaims The twstees of Age UK South Cumbria wllsider their purpose is to govem an organisation that exists to improve the lives of older people in South Cumbria. Our ambition is that in South Cumbria, everyone in later life= Has a decent income Can feel well and enjoy life as much as possible - Can access high quality health and care services Feels comfortable, safe alld secure at home Feels valued by their local community with opportunities to loin, volunteer, learn or work As a cilizen with rights, has their voice heard and can influence decisiolls that affect them Our strategy as we work toward our objects and aims over the next three years is to work with and for older people in order to.. Provide information, advlce and 8ssislance that helps people to aC￿sS benefits and exercise choice to make best use of their resources and improve their experience of daily life Help build stronger communities that increase people's social contact and wellbelno Support the development of more restx)nsive health and welfare services ihal offer people holistic and timely services reflecting their needs and circumstsnces Help the voices of older people and their lived experience to be heard Generate independent income streams that enable us to invest in activity which is r¢ot a current public sector priority Page 2 Age UK South Cumbria Ltd known as Age UK South Cumbria (formerly Age UK South Lakeland) Trustees, Report 0￿￿yes, strategios andactivities Our ambition cznnot be achieved only by our action within South Cumbria. We will continue to work with and through Age UK nationally, with whom we are Brand Partners and have a shared overBII strategy. We will also work with the other Age UK groups and any other partners across Cumbria who share our ambition. As we develop our annual business plans which set oul our actions to deliver our strategy, we will: - Gather and use evidence Involve older people Respond lo the particular challenges of dispersed and rural communities in South Cumbria Develop partnerships and the means for strong co112boration within the third sector and with statutory organisations Seek to ensure that our input contributes to lasting improvements for individuals and their communities We have adopted É set of values which should be evident to older people, our staff, our volunteers and our partners in all aspects of our work. They are to.. - Be respecfful Be inclusive Be positive Be realistic Be empowering Make a difference in people's lives. Fundr8ising d￿ClOsureS Age UK South Cumbria follows the Age UK Fundraising Charter which has been developed with our donors and older people in mind and does not use professional fundraisers or involve commercial participators. There have been no complaints about fundraising activity this year. Further delai15 can be found at https'.Ilwww.ageuk.org.uklget-involvedlfundraiselfundraising-charterl. Public benefit The charity works with local older people to help them retain their independence and exercise real choice in their lives. We aim to do this by.. delivering services that help to meet the needs of older people and fit with the other local services in the communities in which they live., informing and advising older people of their rights and options., advocating for and on behalf of older people on issues which matter to them as individuals or communities. consistently and constsntly to ensure we fully understand their needs. The trustees confim) that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales. Achievements and performance The operational and financial planning for the year April 2024 to March 2025 was very positive. In the previous year we had worked hard to achieve some level of normality following the COVID 19 pandemic. During this year we have continued lo build on this work as well as adjusting lo Signifi￿nt changes in our Senior Leadership Team. The continuation of the war in Ukraine continues to impact on the world economy. Issues such as high energy prices still affecl those who are most vulnerable in our society. Page 3 Age UK South Cumbria Ltd known as Age UK South Cumbria (formerly Age UK South Lakeland) Trustees, Report During this financial year, our social engagement programme has continued to slrengthen. Every week there are over twenty-five different exercise related events happening across South Cumbria. Our Lunch clubs are also back to full strength with new ones opening all the time. Our client Services team have continued to support the 05der people of South Cumbria. The team delivered 2,7(K) responses to requests for information and 1,993 clients were supported to complelion for casework. Unrestricled revenue generation comes mostly from our retailing 8Ctivities. In this financial year we achieved a sales level of £1,520,885 across our retsil estate and online operations. From that significant sales level, when all the direct operational costs of the retailing division are deducted, that left a surplus contribution to the charity's overheads and operational costs of £396.828. The retalling division has continued to be ch211enged by rapid increases in the cost of employment locally. As part of the wider re-slrucluring of the charity, retail pay scales are reviewed annually to better reflect the currenl local market trends. Grants andlor contracts provide a source of restricted income for ihe charity, however there is a need lo ensure thet any grant or contract does not divert the charity from its agreed strategic plan. We also need to remain aware of the potential for contracts in particular lo develop financial dependency on the contracting organizalion, and thus changing the overall focus of the charity- Currently the charity does nol engage in any contract or subcontract work. We also concentrate our grant application efforts on those grant providers who offer grants for projects or workstreams proposed by the prospective grantee. The SMT continues to review all contract and grant opportunities, all grant 8pplications are completed internally. In this financial year the team completed nine grant applications to various potential lunders. We were successful in securing eight grants with a total value lo the charity of £466,895 over the life of those grants. It should be noted some of these grants were mulii-year This equates to a success rate of 88Yo against a national average SUc￿$S of approximately 16%. These successful grants were in addition to grant funding Ihal we enjoyed from ihe previous year's awards, that rolled into 2024125. The acquisition of grant funding remains challenging but we continue to pro£ctively seek appropriate sources of fvnding. Financial revlew The chErity's income was £2,001,626, very similar to 2024 which was £2,025.370. Expenses were £1.986,19812024 - £1,952,060) resulting in a surplus of £21,277 after gains of £5,849 on investmenls 12024- £111,275 after gains of £37,965). Page 4 Age UK South Cumbria Ltd known as Age UK South Cumbri8 (formerty Age UK South Lakeland) Trustees, Report Pollcy on reseThes The Trustees maintain resetves, which are Charity fvnds to be realised at short notice if required. Should the funds fall below the agreed level, immediate steps would be taken to reinstate them by cutting project expenditure. Property values are not taken into account in calculating these reserves. The Trustees review the reserves on an annual basis, and for the year 2024125 considered £561,000 lo be a reasonable holding. In reviewing the level for the year 2Q24125 the Trustees accounted for the followng.. Nomial day to day fluctuations in working capital and cash flow. Three months of salary and rental obligations based on the 2024125 budget were considered an appropriate amount. Possible emergencies. such a5 cessation of trading 8t one of the retail units for the sale of donated goods or the loss of three months, sales for the Kendal Furniture Warehouse. As at 31 March 2025 the charity as a group held funds lotaling £1,400.208 of which £388,862 was held as tangible and intsngible assets and £104,179 was the planned investment in services for 2025126. This left £907.167 of which £47,395 represented restricted fvnds, and £561.000 the core holding so that free reserves had decreased in the year Irom £373,613 to £298,772. This is in line with the charity's objective of providiw seTvices while maintaining sufficient reseryes. Pnnapal funding sourtss The charity obtains funding for its charitable activities from a range of grant funders including the Big Lottery and Age UK. It also aims to improve ftjnding from its range of charity shops and online sales to support our work of improving the lives ol the older people of our district. Invesln7entpolicyandobJectiYes ATAMOS Private Investments manage the organisation's investment portfolio on behalf of the Trustees. The Trustees review investment performance every six months 2nd receive reports from the invesbment company every quarter. The Trustees consider that the guiding principle of the agreed investment policy is to generate funds for the Charity, but that they will not invest in a particular business in circumstances where such investment might hamper the work of Age UK South Lakeland by alienating actual or potential financial supporters. Plans for future periods Alms8nd keyobjectlves foi future perfods Earlier this year the Board considered whether lo merge with Age UK Barrow and District. Following discussions with the Age UK Barrow and District Board ar)d a period of due diligence. it was agreed that such 8 merger should be progressed. Since this decision was taken a lol of work has taken place lo progress the merger and it is intended for this to be completed on 1 st April 2025. The result of this merger is that Age UK South Cumbria will oper8te on E much wider footprint taking in South Cumbria, which can be defined as the areas covered by the previous local councils of South Lakeland District Council and BatTOW District Council. Ttustees and officers The trustees and officers serving during the year and Sin￿ the year end were as follows: Page 5 Age UK South Cumbria Ltd known as Age UK South Cumbria (formerly Age UK South Lakeland) Trustees. Report Tnjstees: J Airey P Leahy (appointed 25 September 20241 C E Lewis (resigned 30 September 20241 B J Mecann S Newell C M Twisl Ch81r'. C M Twist Chief Executive Officer- P Whiteley Senior Management l Leadership H Kilching. Deputy Chief Executive Team.. M Kitchen, Finance Manager G Hartley, Head of Retsilllncome Generation Structure, governance and management Nature ofgoverning documenl The charity is a company limited by guarantee. The company took over the assets of the charity known as Age UK South L8keland Icharity number 5083901 on 1 April 2011 and is now registered as charity number 1141415. Age UK South CLtmbria is an independent charity registered wilh the Charity Commission and govemed by a group of trustees who have been elected by the membership of the charity. The charity has been operating locally since April 1978. Recniifrpwl 8ndappoinfrnent orinjsiees The Chair is elected for three years and shall not seNe more than two consecutive terms of office. In 8ccordance with the governing document the Trustees can co-opt up to one third of their number during the course of the reporting period. Cowopted irustees must be r￿elected al the following AGM. One third of the board retire5 by rotstion at e8ch AGM and is eligible for re-election at that AGM. Only one Trustee has served for longer than nine years. This appointment has been reviewed and it is felt that the value in terms of knowledge of the organisation and understanding of benefieiaries far outweighs any possible risks. Inducuon andlraining of Irustees All new Tnjstees are offered the opportunity to meet with key staff in the organisation, and are given copies of Board of Trustee5' minules and papers for the past six months, the most recent Trustees, Annual Report and Accounts, a copy Df the Constitution and CC3 - The Essenlial Trustee (Charity Commission). The Board of Trustees h8ve adopted the Charity Govemance Ccmge and use il to review Board performance and identify training needs. Page 6 Age UK South Cumbria Ltd knovm as Age UK South Cumbria (formerly Age UK South Lakeland) Trustees, Report RiskmanagenRnt The Board of Trustee5 is responsible for the m8nagement of risks faced by the Charfy- There is a formal annual review, but risks are identified and assessed, and conlr(As estsblished, throughout the year. Key controls during 2024125 have included.. Formal agendas for all committee and Board activity. Comprehensive strategic planning, budgeting and management accounting. Established organisational structures and lines of reporting. Clear authorisation and approval levels. Procedures as required by law for the protection of vulrierable adults and children. The Board of Trustees is satisfied that major risks have been identified and measures are in place to ensure that they are adequately mitigated where necessary. Org8niS8tionBI stnKture The charity and ils subsidiaries are managed on a day-to-day basis by the Senior Management Tea who report and meet with the Board of Trustees on a monthly basis. Oversight of the budgeting and monitoring of management accounts is conducted by the Chair of Trustees on a monthly basis. She liaises wih ihe auditors lo produce the year end slatulory accounts. Relationships with relakd parties Age UK The charity is a brand partrser with the national charity Age UK and is part of a ne￿0￿ of more than 125 brand partners across England and local partners based in Wales, Northem Ireland and Scotland. As a brand partner with Age UK the trustees have agreed to deliver a local information and advi service working with older people. This is part of a wider range of inlormation, advice and practical support seNices. Page 7 Age UK South Cumbria Ltd known as Age UK South Cumbria (fonnerly Age UK South Lakeland) Trustees, Report Financial instruments Objectives andpolic￿$ The charity's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The charity does not use derivative financial instruments. Cash flownsk The charity's activities expose il primarily to the fin8ncial risks of changes in economie conditions, funding availability and investment income rates. Creditnsk The charty's principal fillancial assets are bank balances and cash, trade and other receivables, and investments. Where any risk relates to trade receivables an allowance for impairmenl is made. The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencie5. The charity has no significant concentration of credit risk, with exposure spread over a large number ol counterparties and customers. Liquidity iisk In order to maintsin liquidity to ensure that sufficient fijnds are available for ongoing operations and future developments, the tharity uses a mixture of long-lerm and short-temi investments. Further det8ils regarding liquidity risk can be found in the Statement of accounting policies in the financial statements. Statement of trustees. responsibilities The trustees (who are also the directors of Age UK South Cumbria Ltd for the purposes of company 12wI are responsible for preparing the trustees. report and the financial statements in accordance with 8pplicable law and United Kingdom Accounting Slandards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 'The Financi81 Reporting Standard applicable in the UK and Republic of Ireland" The report and accounts have been prepared in accordance with th8 provisions in the Companies Act 2006 relating to small companies. Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources 2nd application of resources, including its income and expenditure, of ihe charitable company for that period. In preparing these financial statements, the trustees are required to: select suitable accounting policies and apply them consistently., obserye the methods and principles in the Charities SORP., make judgements and e5timate5 that are reasonable and prudent.. state whether applicable Bccounting standards, comprising FRS 102 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 company will continue in business. Page 8 Age UK South Cumbria Ltd known as Age UK South Cumbria (formerly Age UK South L8keland) Trustees, Report The trusiees are responslble for keeping proper accounting records that can disclose WFih reasonable accuracy al any time the financial posilion of the charitable company and enable them lo ensure th8t the financial statements comply with the Companies Acl 2006. They are also responsible for safegu8iding the assets of the charitable company and hence for tsking reasonable steps for the prevention and detection ot fraud and other irregularities. The trustees are responsible for the maintenance and Integrlty of the corporate and financial information included on the charitable company's website. Legislation goveming the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Disclosure of Information to auditor Each trustee has taken steps that they oughl to have taken as a trustee in order lo make themselves aware of any relevanl audit Informatio￿ and to establish that the charity's auditor is aware of that information. The trustees confimi that there is no relevant information that they know of and of which they know the auditor is unaware. Small (xJmpanie$ provision ststement This report has been prepared in accordance wtth the small companies regime under the Companies Act 2006. The Qnnual report was approved by the Irustees of the charty on 30 July 2025 and signed on its behalf by: C M Twist Chair and trustee Page 9 Age UK South Cumbria Ltd known as Age UK South Cumbria (formerly Age UK South Lakeland) Independent Auditorfs Report to the Members of Age UK South Cumbria Ltd Opinion We have audited the financial statements of Age UK South Cumbria Ltd (the 'charily') for the year ended 31 March 2025. which comprise the Statement of Financial Activities, Balance Sheet, and Notes to the Financial Statements, including a summary of significant accounting policies. The linallcial reporting framework that has been applied in their preparation is Uniled Kingdom Accounting Standards, comprising Charities SORP - FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, and applicable law (United Kingdom Generally Accepted Accounting Practice). In our opinion the finencial ststements: give a true and fair view of the slate of the ch8ritVs affairs as 8131 March 2025 8nd of its incoming resources and application of resources, including ils income and expenditure, for the year the have been properly prepared in accordance with Ur¢iled Kingdom Generally Accepted Accounting Practice- and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for oplnlon We conducted our audit in accordance with International Standards on Auditing (UK} IISAS IUKII and appllcable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financ581 statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant lo our audit of the financial ststements in the UK. including the FRC'S Ethical Standard, and the provisions available for small entities, in the circumstances sel out in note lo the financial statement5. and we have fulfilled our oiher ethical responsibilities in accordance with these requirements. We believe Ihal the audit evidence we have obtsined is suffi'cient and appropriale to provide a basis for our opinion. Conclusions relaling to golng concem In auditing the financial statemenls. we have concluded that the INstees use of the going concem basis ol accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relaling lo 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 le8St twelve months from when the original financial stalements were authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going con￿rn are described in the relevant sedions of this report. Other Infonnatlon The trustees are responsible for the other infom)alion. The other irrformation comprises the Information included in the annual report, other than the financial statements and our auditol's report thereon. Our opinion on the financial statements does not cover the other information and, ex￿pt to the extent otherwise explicitly slated in our report, we do not express any form of assurance onclusion Ihereon. Page 10 Age UK South Cumbria Ltd known as Age UK South Cumbria (formerly Age UK South Lakeland) Independent Auditorfs Report to the Members of Age UK South Cumbria Ltd In connection with our audit of the financial statements, 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 kno￿edge obtained in the audit or otheNise appears to be materially missl8ted. If we identlfy such material Inconsistencies or apparent materi81 misstatements, we are required to determine whelher there is a material misstatement in the financial statements Dr a material misstatement of the other information. If, based on the work we have perfomieé, we conclude that there is a material misstatement of this other irrform8tion, we a￿ required to report that fact. We have nothing to report in this regard. Oplnion on other matter pre3cribed by the Companies Act 2006 Irs our opinion, based on the work undertaken in the course of the audil- the information given in the Tnjstees, Report for the financial year for which the financial statements are prepared is consistent with ihe financial statements., and the Trustees. Report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the charity and ils environment obtèlned In the course of the audit, we have not identified material misstatements in the Trustees. Report. We have llDlhing to report in respect of the following rnatters where the Companies Act 2006 requires us to report lo you if, in our opinion.. adequale accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us., or the ffnanci81 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 infomiation and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Statement of trustees, responsibilities {sel out on page 8 and 9), the Irustees are responslble for the preparation of the financial statements and for being satisfied that they give a true 8nd fair view. and for such internal control as the Injstees determine is necessary to enable the preparation of financial s18tements that are free from material misststement, whether due lo fraud or error. In preparing the fin2ncial statements. the trustees are responsible for assessing the charitvs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations. or have no realistic alternative but to do so. Page 11 Age UK South Cumbria Ltd known as Age UK South Cumbria (formerly Age UK South Lakeland) Independent Auditorfs Report to the Members of Age UK South Cumbria Ltd Auditor responsibilities for the audit of the financial statements Our objectives are lo obtain reasonable assurance 8bout whether the financial statements as a whole are tree from material misstatement, whether due lo fraud or error, and lo issue an auditor'5 report that includes our opinion. Re8sonable assurance is a high level of assuran￿, but is not a guarantee that an audil conducted in accordance with ISAS {UK) will always detect a Mate￿al misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could re850nably be expected to influence the economic decisions of users laken on the basis of ihese financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. We identified areas of laws and regulations that could reasonably be expected lo have a material effect on the financial ststements from our experience and from discussions with management. We reviewed any related correspondence and records of trustee meetings to assess compliance with laws and regulations and discussed the current position with management. We ensured the audit team were alert for any indications of non-compliance throughout the audit work. We assessed the charity's wlicies and procedures on fraud risks. No instances of actual, suspected or alleged fraud were identified by us or the charity in the year. Because of the inherent limilalions of an auéit, there is ? risk that we will not detect all irregularities, including those leading lo a material misstatement in the fillancial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non