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2025-03-31-accounts

Registered number: 07596900 Charity number: 1141552

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Trustees' report and financial statements for the year ended 31 March 2025

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Contents

Page
Reference and administrative details of the Charity, its Trustees and advisers 1
Trustees' report 2 - 5
Independent auditors' report on the financial statements 6 - 9
Consolidated statement of financial activities 10
Consolidated balance sheet 11
Charity balance sheet 12
Consolidated statement of cash flows 13
Notes to the financial statements 14 - 32

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Reference and administrative details of the Charity, its Trustees and advisers for the year ended 31 March 2025

Trustees Mr W S G Smith
Ms A J Hindman
Mr J Prabhay
Mr W Ogwal (appointed 5 July 2024)
Company registered
number
07596900
Charity registered
number
1141552
Registered office
73 Mount View Road
London
N4 4SR
Company secretary
Ms M C Phillips
Independent auditors
Kreston Reeves Audit LLP
Chartered Accountants
2nd Floor
168 Shoreditch High Street
London
E1 6RA
Bank
TSB Bank Plc
120 George Street
Edinburgh
EH2 4LH
VFX Plc
32-38 Dukes Place
London
EC3A 7LP
Wise Payments Ltd
56 Shoreditch High Street
London
E1 6JJ
FairFX PLC
68 Upper Thames Street
London
EC4V 3BJ

Page 1

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Trustees' report for the year ended 31 March 2025

The Trustees present their annual report together with the audited financial statements of the Charity for the year 1 April 2024 to 31 March 2025. The annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the group and the Charity qualify as small under section 383 of the Companies Act 2006, the group strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

a. Policies and objectives

The charity’s objectives are to relieve poverty and financial hardship in Kenya and Uganda in such ways as the Trustees see fit. In particular but not exclusively by providing:

(1) Training and funding for income generating programmes and job creation.

(2) Supporting the needs of children in Busia in such ways as the trustees think fit.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

b. Strategies for achieving objectives

To achieve its objectives the charity:

c. Activities undertaken to achieve objectives

To achieve the objectives the group has this year focussed on providing business support and loan finance to small business in East Africa. This year we have given 403 loans to small businesses in Kenya and Uganda (2024: 205 loans) and continued to provide technical business support to our investee businesses.

d. Grant-making policies

IIn order to further its objectives, the charity may co operate with, fund or provide grants to other organisations whether charities or other. The current focus of the charity is job creation.

The Board of trustees has ultimate collective responsibility for all grant making decisions in line with the group’s charitable purposes and any restrictions agreed with donors and funding partners.

Trustees may assign certain decision making responsibilities to its sub committees, Board members or staff within its scheme of delegation. Such delegated decisions are subject to scrutiny and review from time to time.

Page 2

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Trustees' report (continued) for the year ended 31 March 2025

Review of the year’s performance and achievements

Balloon Ventures Limited continued working with and investing in small-medium enterprises (“SMEs”), building on the success of the previous year to achieve significant growth. Highlights of the year include:

Overall we made 403 loans against a target of 372 (2024: 205). This was on average 34 loans per month with an average loan size of £17k (£18k in Uganda, £13k in Kenya). The average loan size continues to grow (2024: £17.5k, 2023: £16.7k) particularly in Uganda where we have numerous clients returning for larger loans. Of the 403 loans, 109 were repeat loans to customers who wanted larger loans having successfully repaid the first loan. Becoming a lender of choice and retaining good clients is a key part of our growth, profitability and efficiency strategy.

During the year we:

Cash

We continued to receive financial support and excellent feedback from our funders: Palladium (through their Challenge Fund for Youth Employment), Dutch Good Growth Fund and Ceniarth.

During the year we raised additional debt funding of $500k from DGGF and $1.5m with Ceniarth. We are in ongoing discussions with various lenders about future funding.

Impact

5,269 good jobs have been created from Balloon’s investments, were created/improved and 30,000 lives positively impacted. Before Balloon investment, 2.8% of jobs in our investee businesses are good jobs; after Balloon investment this increases to 92.5%.

Our investments have improved educational facilities for 75,000 students, healthcare facilities for 400,000 patients, and improved incomes for 16,000 smallholder farmers.

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

Page 3

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Trustees' report (continued) for the year ended 31 March 2025

b. Reserves policy

The charity retains such reserves as the trustees consider necessary in order to sustain its ongoing charitable activities, having regard to the level of donations and grants received. Donations and grants received to cover specific charitable project costs are held in restricted reserves.

As at 31 March 2025, the total funds were £4,124,409 (2024: £3,116,463). Of this, £3,936,355 (2024: £2,732,265) was restricted funds.

c. Risk management

The trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity and are satisfied that systems and procedures are in place to mitigate the charity’s exposure to the major risks.

Structure, governance and management

a. Constitution

The charity is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 8 April 2011.

b. Methods of appointment or election of Trustees

The management of the charity is the responsibility of the trustees who are elected and co-opted under the terms of the Articles of Association.

c. Organisational structure and decision-making policies

The Board of Trustees, which has a minimum of three members, administers the charity and makes all decisions in regard to the charity’s operations. The Board meets at least twice a year.

d. Policies adopted for the induction and training of Trustees

The initial trustees were appointed by the Articles of Association. Subsequent appointments are made by the Board of Trustees.

e. Related party relationships

During the year the charity received distributions of £519,380 (2024: £nil) from Balloon Ventures Limited, its wholly owned subsidiary.

The outstanding balance owed by Balloon Ventures Limited to the charity at the end of the year was £1,349,634 (2024: £343,810).

Plans for future periods

For the next financial year the group plans to focus on raising additional funding to continue growth, particularly in Uganda where we have built significant momentum.

The group will continue investing in technologies in order to create more efficiencies and reduce the cost of borrowing to clients in order to have more impact.

Page 4

Balloon Ventures Foundatlon Ltd IA company Ilmlted by guarantee) Tru$t8as' report Iconlinued) for the year endad 31 March 2025 Dlsclosure of Intormatlon to audltors Each of the persons who are Trustees al the lime when this Trustees, report is approved has confirmed Ihal.. so far as that Tru8te8 Is aware, Ihere is no relevant audll Information of whiGh the charftable group's 8udilors are unaware. and that Truslee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any ralevanl audit information and lo establish Ihat the charitable group's auditors are aware of that Informallon. Audltors The auditors, Kreston Reeves LLP. have indicated their wllllngnes8 lo conllnue in office. The designated Trustees will propose a molion roappoinling the auditors al a meeting of the Trustees. Approved by order of the members of the board of Truste&s and signed on their behalf by. MrWSGSmlth Trustee Datè: 13 October 2025 Pag6 5

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Independent auditors' report to the Members of Balloon Ventures Foundation Ltd

Opinion

We have audited the financial statements of Balloon Ventures Foundation Ltd (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the consolidated statement of financial activities, the consolidated balance sheet, the charity balance sheet, the consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Page 6

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Independent auditors' report to the Members of Balloon Ventures Foundation Ltd (continued)

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditors' report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Page 7

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Independent auditors' report to the Members of Balloon Ventures Foundation Ltd (continued)

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Capability of the audit in detecting irregularities, including fraud

Based on our understanding of the charity and the sector as a whole, and through discussion with the Trustees, directors and other management (as required by auditing standards), we identified that the principal risks of noncompliance with laws and regulations related to health and safety, anti-bribery and employment law. We considered the extent to which non-compliance might 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 SORP (FRS 102), the Companies Act 2006 and other relevant charity legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of noncompliance throughout the audit. We evaluated Trustees' and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks related to posting inappropriate journal entries to increase revenue or reduce expenditure, management bias in accounting estimates and judgemental areas of the financial statements such as the provisions against loan debtor balances. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.

Page 8

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Independent auditors' report to the Members of Balloon Ventures Foundation Ltd (continued)

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Stephen Moss BSc (Hons) (Senior Statutory Auditor)

for and on behalf of Kreston Reeves Audit LLP Chartered Accountants Statutory Auditor London

Date: 13 October 2025

Page 9

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Consolidated Statement of financial activities (incorporating income and expenditure account) for the year ended 31 March 2025

Note
Income from:
Donations and legacies
4
Other trading activities
5
Other investment income
6
Other income
7
Total income
Expenditure on:
Other trading activities
Charitable activities
Total expenditure
Net (expenditure)/income before
taxation
Taxation
14
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2025
£
-
-
-
-
-
-
196,144
196,144
(196,144)
-
(196,144)
384,198
(196,144)
188,054		 Restricted
funds
2025
£
743,186
1,525,023
20,180
1,070
2,289,459
788,305
58,493
846,798
1,442,661
(238,571)
1,204,090
2,732,265
1,204,090
3,936,355		 Total
funds
2025
£
743,186
1,525,023
20,180
1,070
2,289,459
788,305
254,637
1,042,942
1,246,517
(238,571)
1,007,946
3,116,463
1,007,946
4,124,409		 Total
funds
2024
£
1,326,718
802,072
11,195
9,272
2,149,257
891,878
177,953
1,069,831
1,079,426
-
1,079,426
2,037,037
1,079,426
3,116,463

Page 10

Balloon Ventures Foundatlon Ltd {A company Ilmlted by guarantsel Reglstered number: 07596900 Consolldated balancè sheet as at 31 March 2025 2025 2024 Note Tangible assets Currant as8•t8 15 64,376 76, 196 Debtors Cash al bank and in hand 17 6,650.983 968.453 3.602,550 1,060,379 7,619,438 4.662,929 Creditors.. omounls falllng due wilhln one year 18 11.423.974) (32,103J Net ¢urrnnt aS8et¥ 6.19S,462 4,630,826 Total as8ats 1088 curr•nt118bllltla4 6,259,838 4. 707,022 Credllors.. amounts falling due after more than one yeor 12.135,4291 (1,590,559) Total not a88èt8 4,124,409 3, 116,463 Charlly funds Reslrlcl8d fund8 Unreslrlcled funds 20 3,938,35S 188,054 2, 732,265 384, 198 Total funds 4,124.409 3,116,463 The Charlty was enlllled lo exemplion from audll under secllon 477 of the Companles Act 2006. The members have not required the enllly lo oblaln an audll for tho year In quesllon in accordance ￿th section 476 of Iho Compani&s Acl 2006. However, an audit Is requlred In 8ccord8nce ¥￿th s8cllon 151 of the Charlll89 Ad 2011. Thè Tru818es acknowledge Ihelr rosponslbllS118s for complylng wllh the requiramanls of the Act wllh respect lo accounllng records and preparallon of flnanclal slalamenl8. The financial slalemonls have b8en prepared in accordanc8 wllh the provislon8 applicable lo enlilies subject lo the small companies regime. The financ481 statements were 8pproved and aulhorised for18sue by Ihe Trusl8es and signed on Ihair behall by.. MrWSGSmlth Trustee Dale.. 13 October 2025 Tha notes on pages 14 10 32 form part of thesè financial slal8m&nls. P8ge11

Balloon Ventur&s Foundatlon Ltd IA Company Ilmlted by guarantee) Reglstered number: 07596900 Char51y balance sheet as at 31 March 2025 2025 2024 Not¢ Flxed assets Investments 16 3,024,786 3,024,786 3.024,786 3.024,786 Current a888ts Deblors Cash 81 bank and In hand 17 1,349,634 40,757 343,818 32,252 1,390,391 376,070 Credllor8.' amounts falling due wilhln one year 18 (12,803) (6,411? Net current a888t8 1,377.588 369,659 Total net a888t8 4,402,374 3,394,445 Charlty funds Reslricled funds Unreslricled funds 20 20 2,932,860 1,469,514 2,248, 167 1, 146,278 Total funds 4,402,374 3,394.445 The Charills nol rnovemenl In funds for the year w88 £1,007,929 (2024 - £1, 148, 765). The Charity was enlllled lo axemplion from audll under secllon 477 of the Compani8s Act 2006. The members have not requlred th8 anllly lo oblaln an audll for the yaar In quesllon In accordance wllh secllon 476 of the CompanSes Act 2006. However, an aud51 Is requlred In accordanc8 with secllon 151 of the Charille8 Act 2011. The Trustees acknowledge their responsibililies for complying with the requirements of the Act with respect lo occounling reGords and preparation of financial stalemenls. Tha flnanci81 s181emenls have baen prepared In accordance wllh the provl$Sons applicable lo enlilies subject to the small companiès regime. The fSn8nclal slalÉments were approved and aulhorls&d for issue by the Trustees and signed on their behalf by.. MrWSGSmlth Trus188 Dale.. 13 October 2025 The notes on pages 14 10 32 form part of Ihese financial slalemenls. Page 12

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Consolidated statement of cash flows
for the year ended 31 March 2025
Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Interest received
Net cash provided by/(used in) investing activities
Cash flows from financing activities
Cash inflows from new borrowing
Interest payable
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Change in cash and cash equivalents due to exchange rate movements
Cash and cash equivalents at the end of the year		 2025
£
(1,661,999)
34,941
(41,184)
20,180
13,937
1,514,406
(116,119)
1,398,287
(249,775)
1,060,379
157,849
968,453		 2024
£
(421,551)
-
(54,749)
11,195
(43,554)
961,672
(50,512)
911,160
446,055
769,605
(155,281)
1,060,379

The notes on pages 14 to 32 form part of these financial statements

Page 13

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

1. General information

Balloon Ventures Foundation Limited is a private company limited by guarantee and a registered charity. Registered company number 07596900, registered in England, and registered charity number 1141552. The principal aims of the charity are shown in the Trustee Report and the registered office is shown in the administrative details of the company page.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Balloon Ventures Foundation Ltd meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The consolidated statement of financial activities (SOFA) and consolidated balance sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of financial activities in these financial statements.

The Charity's functional and presentational currency is Pound Sterling.

2.2 Company status

The charity is a company limited by guarantee. The members of the company are the trustees named on the adminstrative details page. In the event of the charity being wound up the liability in respect of the guarantee is limited to £10 per member of the charity.

2.3 Going concern

The financial statements have been prepared on the going concern basis. In determining this the directors have reviewed the group's financial position and available resources, including the group''s cash flow forecast. After considering this the directors believe the group has adequate resources to continue operating for at least 12 months from the date of signing these financial statements.

2.4 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

The Charity receives all the profits generated during the year from Balloon Ventures Limited by way of a deed of covenant. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income received for a specific purpose, or which has restrictions or conditions associated with it, is classified as restricted income and allocated to restricted funds. Income that can be spent at the trustees’ discretion in furtherance of the charity’s aims and objectives is classified as unrestricted income and allocated to unrestricted funds.

Page 14

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

2. Accounting policies (continued)

2.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management carried out at headquarters. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

Charitable activities and governance costs are costs incurred on the charity’s educational operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

2.6 Government grants

Government grants are credited to the consolidated statement of financial activities as the related expenditure is incurred.

2.7 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity. This is normally upon notification of the interest paid or payable by the Bank.

2.8 Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the reporting date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the consolidated statement of financial activities.

Page 15

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

2. Accounting policies (continued)

2.9 Taxation

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

2.10 Tangible fixed assets and depreciation

Tangible fixed assets costing £NIL or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .

Depreciation is provided on the following basis:

Motor vehicles - 20%
Office equipment - 33%
Computer equipment - 33%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the consolidated statement of financial activities.

2.11 Investments

Investments in subsidiaries are valued at cost less provision for impairment.

2.12 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.13 Cash at bank and in hand

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 acquisition or opening of the deposit or similar account.

Page 16

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

2. Accounting policies (continued)

2.14 Liabilities and provisions

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risk specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

2.15 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.16 Operating leases

Rentals paid under operating leases are charged to the consolidated statement of financial activities on a straight line basis over the lease term.

2.17 Pensions

The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.

2.18 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

Page 17

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

3. Critical accounting estimates and areas of judgment

In preparing the financial statements it is necessary to make certain judgments, assumptions and estimates that affect the amounts recognised in the financial statements. The trustees consider the key areas of estimate and judgement to be:

Critical accounting estimates and assumptions:

Recoverability value of loans receivable from small businesses

A loan loss provision is included on the balance sheet to account for the risk of potentially irrecoverable loans. This is offset against loans receivable to adjust the value of loans receivable to their estimated recoverable amount. The provision is an estimate based on judgment and assumptions. Increases and decreases in the value of the loan loss provision are reflected in the Statement of Comprehensive Income.

When estimating this provision required, management assesses the probability of default ("PD %"), the exposure at default ("EAD") and the Loss Given Default ("LGD %") for each loan based on its risk categorisation.

The formula used is to determine the provision required is: EAD x PD % x LGD %

Risk categorisation

Loans are risk categorised as follows:

Risk category No. days in arrears Arrears multiple
Low < 30 < 1
Medium 30 - 89 1 - 3
High 90 - 179 3 - 6
Default 180 + 6 +

The arrears multiple refers to the number of installments that the loan is in arrears by. It is calculated by taking total arrears at the reporting period end and dividing this by the average loan installment. This combined approach, looking at days in arrears as well as value, gives a better indication of the probability of default than solely considering days in arrears, as loans with a higher arrears multiple are more likely to default.

Probability of default

Management assesses the likelihood of a default occurring over a particular time horizon or the likelihood that a borrower will be unable to meet their debt obligations as they fall due by assessing historic and upto-date data for all loans in each risk category, to determine the percentage of loans that ultimately result in a default.

Exposure at default

This is the carrying amount of the loan outstanding at the reporting date.

Loss given default

LGD % reflects the portion of the loan that is not covered by the estimated recoverable value of collateral. In computing the estimated recoverable value of collateral, management adjusts the forced sale value of the collateral (which is obtained from accredited, independent valuation experts) using:

Page 18

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

3. Critical accounting estimates and areas of judgment (continued)

The estimated recoverable value of collateral is then compared to the EAD to determine the portion of the EAD that is not covered by collateral. This portion, expressed as a percentage, equates to the LGD. Included within debtors is a provision of £120,163 (2024: £131,349). Of this amount, £Nil (2024: £Nil) is provided against debt due in more than one year, with £120,163 (2024: £131,349) provided against debt due within one year.

4. Income from donations and legacies

Unrestricted
funds
2025
£
Donations
-
Grants
-
Total 2025
-
Total 2024
36		 Restricted
funds
2025
£
-
743,186
743,186
1,326,682		 Total
funds
2025
£
-
743,186
743,186
1,326,718		 Total
funds
2024
£
28,255
1,298,463
1,326,718

5. Income from other trading activities

Income from non charitable trading activities

Loan interest income
Total 2024		 Restricted
funds
2025
£
1,525,023
802,072		 Total
funds
2025
£
1,525,023
802,072		 Total
funds
2024
£
802,072

Page 19

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

6. Other investment income

Other interest receivable
Total 2024		 Restricted
funds
2025
£
20,180
11,195		 Total
funds
2025
£
20,180
11,195		 Total
funds
2024
£
11,195

7. Other incoming resources

Unrestricted
funds
2025
£
Other operating income
-
Total 2024
4,805		 Restricted
funds
2025
£
1,070
4,467		 Total
funds
2025
£
1,070
9,272		 Total
funds
2024
£
9,272

8. Analysis of charitable expenditure by activities

Kenyan and Ugandan project costs
Total 2024		 Grant
funding of
activities
2025
£
-
34,473		 Support
costs
2025
£
254,637
143,480		 Total
funds
2025
£
254,637
177,953		 Total
funds
2024
£
177,953

Of the above expenditure totalling £254,637 (2024: £177,953), £58,493 (2024: £132,238) related to restricted activities, and £196,144 (2024: £45,715) related to unrestricted activities.

Page 20

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

9. Charitable and trading expenses

Charitable
activities -
support
costs
2025
Other
trading
expenses
2025

£
£
In-country operating costs
-
907,136
Loan loss expense
-
95,901
Other project costs
-
-
Head office costs
175,306
50,457
Governance costs
20,838
10,240
Interest paid
-
116,119
Foreign exchange differences
-
(157,950)
Research and development
58,493
4,973
254,637
1,026,876
Total 2024
200,122
899,652
10.
Analysis of grants
Grants to
Institutions
2025
£
Love For All Orphanage (Nakuru, Kenya)
-
Total 2024
34,473
11.
Auditors' remuneration
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts
Fees payable to the Charity's auditor in respect of:
All assurance services not included above
All non-audit services not included above		 Total
2025

£
907,136
95,901
-
225,763
31,078
116,119
(157,950)
63,466
1,281,513
1,099,774
Total
funds
2025
£
-
34,473
2025
£
11,700
8,400
1,100		 Total
2024
£
484,868
77,538
39,321
254,978
23,664
50,512
155,281
13,612
1,099,774
Total
funds
2024
£
34,473
2024
£
11,100
7,950
1,050

Page 21

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

12. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2025
£
360,567
159,390
7,771
527,728		 Group
2024
£
376,490
7,285
8,495
392,270		 Charity
2025
£
136,393
10,351
7,771
154,515		 Charity
2024
£
94,535
7,285
8,315
110,135

The average number of persons employed by the Charity during the year was as follows:

UK management
Kenyan and Ugandan staff		 Group
2025
No.
2
37
39		 Group
2024
No.
2
27
29		 Charity
2025
No.
-
-		 Charity
2024
No.
2
-
2

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2025 2024
No. No.
In the band £60,001 - £70,000 2 2

The Trustees of the charity are considered to be the Key Management Personnel.

13. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2024 - £NIL) .

During the year ended 31 March 2025, no Trustee expenses have been incurred (2024 - £NIL) .

Page 22

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

Notes to the financial statements
for the year ended 31 March 2025
14.
Taxation
Corporation tax
Current tax on net (expenditure)/income for the year
Taxation on net (expenditure)/income		 2025
£
238,571
238,571		 2024
£
-
-

The tax assessed for the year is lower than ( 2024 - lower than ) the standard rate of corporation tax in the UK of 25% ( 2024 - 25% ). The differences are explained below:

Net (expenditure)/income before tax
Net (expenditure)/income multiplied by the standard rate of corporation tax
in the UK of 25_(2024 - 25%)._
Effects of:
Non-taxable income less expenses not deductible for tax purposes
Overseas tax charge
Total tax charge for the year		 2025
£
1,246,517
311,629
(311,629)
238,571
238,571		 2024
£
1,079,426
269,857
(269,857)
-
-

There are no factors considered likely to affect future tax charges.

Page 23

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

15. Tangible fixed assets

Group

Cost or valuation
At 1 April 2024
Additions
Disposals
At 31 March 2025
Depreciation
At 1 April 2024
Charge for the year
On disposals
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024		 Motor
vehicles
£
54,392
21,852
(10,265)
65,979
9,882
9,443
(387)
18,938
47,041
44,510		 Office
equipment
£
5,985
344
-
6,329
-
2,110
-
2,110
4,219
5,985		 Computer
equipment
£
31,886
18,988
(28,960)
21,914
6,185
6,510
(3,897)
8,798
13,116
25,701		 Total
£
92,263
41,184
(39,225)
94,222
16,067
18,063
(4,284)
29,846
64,376
76,196

Page 24

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

16. Fixed asset investments

Charity
Cost
At 1 April 2024
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024		 Investments
in subsidiary
companies
£
3,024,786
3,024,786
3,024,786
3,024,786

17. Debtors

Due after more than one year
Other debtors
Due within one year
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Group
2025
£
2,175,699
2,175,699
-
4,447,665
27,619
6,650,983		 Group
2024
£
1,141,907
1,141,907
-
2,415,839
44,804
3,602,550		 Charity
2025
£
-
-
1,349,634
-
-
1,349,634		 Charity
2024
£
-
-
343,810
8
-
343,818

All amounts owed by group undertakings are non-interest bearing, unsecured and are due on demand.

Where loans within Other debtors are given for the purpose of purchasing an asset, no asset held as security in the name of Balloon Ventures Ltd are included in the consolidated accounts of Balloon Ventures Foundation Ltd, as the charity does not have a beneficial interest in the asset unless the borrower defaults on the loan.

Included within Other debtors are loans receivable of £6,605,544 (2024: £3,450,902). Of this amount, £2,175,699 (2024: £1,141,907) is due in over one year, with £4,429,845 (2024: £2,413,944) due within one year.

Page 25

Balloon Ventures Foundation Ltd (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

Schedule of loans receivable

Loans receivable at 1 April
Loan additions in the year
Loan repayments in the year
Loans written off in the year
(Increase)/ decrease in loan loss provision
FX revaluation adjustments		 Group
2025
£
3,450,902
6,885,793
(3,778,363)
(94,496)
2,840
138,868
6,605,544		 Group
2024
£
1,878,650
3,863,676
(2,081,573)
(34,911)
(44,635)
(130,305)
3,450,902

As at 31 March 2025 the loan loss provision stands at £120,163 (2024: £131,349).

Page 26

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

18. Creditors: Amounts falling due within one year

Bank overdrafts
Bank loans
Trade creditors
Corporation tax
Other taxation and social security
Other creditors
Accruals and deferred income		 Group
2025
£
2
979,536
-
157,819
12,425
251,798
22,394
1,423,974		 Group
2024
£
-
10,000
692
-
-
951
20,460
32,103		 Charity
2025
£
-
-
-
-
-
1,103
11,700
12,803		 Charity
2024
£
-
-
-
-
-
951
5,460
6,411

Of this balance, £10,000 (2024: £10,000) is guaranteed by the UK Government under the Bounce Back Loan Scheme. Other creditors represent the pending balance to be disbursed to loans that were approved at the year end.

19. Creditors: Amounts falling due after more than one year

Group Group
2025 2024
£ £
Bank loans 2,135,429 1,590,559

Of this balance, £2,450 (2024: £12,450) is guaranteed by the UK Government under the Bounce Back Loan Scheme.

Included within the above are amounts falling due as follows:

Between one and two years
Bank loans
Between two and five years
Bank loans		 Group
2025
£
1,747,615
387,814		 Group
2024
£
10,000
1,580,559

Page 27

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

20. Statement of funds

Statement of funds - current year

Unrestricted funds
General fund
Restricted funds
Balloon Ventures East Africa Fund
Balloon Ventures Limited
Total of funds
Statement of funds - prior year
Unrestricted funds
General fund
Restricted funds
Balloon Ventures East Africa Fund
Balloon Ventures Limited
Total of funds		 Balance at 1
April 2024
£
384,198
2,248,167
484,098
2,732,265
3,116,463
Balance at
1 April 2023
£
425,072
1,053,723
558,242
1,611,965
2,037,037		 Income
£
-
743,186
1,546,273
2,289,459
2,289,459
Income
£
4,841
1,326,682
817,734
2,144,416
2,149,257		 Expenditure
£
(196,144)
(58,493)
(1,026,876)
(1,085,369)
(1,281,513)
Expenditure
£
(45,715)
(132,238)
(891,878)
(1,024,116)
(1,069,831)		 Balance at
31 March
2025
£
188,054
2,932,860
1,003,495
3,936,355
4,124,409
Balance at
31 March
2024
£
384,198
2,248,167
484,098
2,732,265
3,116,463

The Balloon Ventures East Africa Fund is dedicated to supporting small businesses and creating jobs in East Africa.

Balloon Ventures Limited is the trading subsidiary of Balloon Ventures Foundation Limited.

Page 28

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

21. Summary of funds

Summary of funds - current year

General funds
Restricted funds
Summary of funds - prior year
General funds
Restricted funds		 Balance at 1
April 2024
£
384,198
2,732,265
3,116,463
Balance at
1 April 2023
£
425,072
1,611,965
2,037,037		 Income
£
-
2,289,459
2,289,459
Income
£
4,841
2,144,416
2,149,257		 Expenditure
£
(196,144)
(1,085,369)
(1,281,513)
Expenditure
£
(45,715)
(1,024,116)
(1,069,831)		 Balance at
31 March
2025
£
188,054
3,936,355
4,124,409
Balance at
31 March
2024
£
384,198
2,732,265
3,116,463

22. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2025
£
Tangible fixed assets
-
Debtors due after more than one year
-
Current assets
200,857
Creditors due within one year
(12,803)
Creditors due in more than one year
-
Total
188,054		 Restricted
funds
2025
£
64,376
2,175,699
5,242,880
(1,411,171)
(2,135,429)
3,936,355		 Total
funds
2025
£
64,376
2,175,699
5,443,737
(1,423,974)
(2,135,429)
4,124,409

Page 29

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

23. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Increase in debtors
Increase/(decrease) in creditors
Foreign exchange differences
Interest receivable
Interest payable
Taxation charge
Corporation tax received/(paid)
Net cash used in operating activities
24.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
25.
Analysis of changes in net debt
At 1 April
2024
£
Cash at bank and in hand
1,060,379
Bank overdrafts repayable on demand
-
Debt due within 1 year
(10,000)
Debt due after 1 year
(1,590,559)
(540,180)		 Group
2025
£
1,007,946
18,063
(3,048,433)
264,516
(157,849)
(20,180)
116,119
238,571
(80,752)
(1,661,999)
Group
2025
£
968,453
968,453
Cash flows
£
(91,926)
(2)
(969,536)
(544,870)
(1,606,334)		 Group
2024
£
1,079,426
11,501
(1,695,086)
(11,990)
155,281
(11,195)
50,512
-
-
(421,551)
Group
2024
£
1,060,379
1,060,379
At 31 March
2025
£
968,453
(2)
(979,536)
(2,135,429)
(2,146,514)

Page 30

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

26. Pension commitments

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £7,771 (2024: £8,316). Contributions totalling £1,103 (2024: £951) were payable to the fund at the balance sheet date and are included in creditors.

27. Operating lease commitments

At 31 March 2025 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years		 Group
2025
£
14,789
32,096
1,296
48,181		 Group
2024
£
6,165
16,537
-
22,702

28. Members' liability

The charity is a company limited by guarantee. The members of the company are the trustees named on page 1 of the accounts. In the event of the charity being wound up the liability in respect of the guarantee is limited to £10 per member of the charity.

29. Related party transactions

The charity has a wholly owned subsidiary, Balloov Ventures Limited ('the company'). During the year, the company made distributions of £519,380 (2024: £Nil) to the charity. During the year the charity recharged UK head office costs of £Nil (2024: £Nil) to its subsidiary, Balloon Ventures Limited. The outstanding balance owed to the charity at the end of the year was £1,349,634 (2024: £343,810).

30. Controlling party

The charity is under the control of the trustees.

Page 31

Balloon Ventures Foundation Ltd

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

31. Principal subsidiaries

The following was a subsidiary undertaking of the Charity:

Name Company Registered office or principal Principal activity
number place of business
Balloon Ventures Ltd 07940726 73 Mount View Road, London, N4 Investing in small
4SR businesses in Kenya
and Uganda
Class of Holding
shares
Ordinary 100%

The financial results of the subsidiary for the year were:

Name Income Expenditure Profit/(Loss) Net assets
£ £ for the year £
£
Balloon Ventures Ltd 1,525,023 628,629 519,380 2,746,821

Page 32