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← Pharo Foundation

2024-12-31-accounts

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Development on a Mission

Pharo Foundation is a mission-driven, impact-oriented organisation that designs, funds, and operates economic development programmes towards a vibrant, productive and self-reliant Africa.

Company Limited by Guarantee | Registration Number: 07678862 (England and Wales) | Charity Registration Number: 1143152

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Table of Contents

Table of
Contents
Reference and Administrative Information 4
Pharo Foundation at a Glance 5
Trustees’ Report (Including Strategic Report)
•Development on a Mission 7
•Mission Achievements in 2024 14
•Structure Governance and Management 28
•Financial Review 34
Independent Auditor’s Report 37
Financial Statements
•Consolidated Statement of Financial Activities 42
•Statement of Financial Position 43
•Statement of Cash Flows 44
•Principal Accounting Policies 45
•Notes to the Financial Statements 51

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Reference and Administrative Information

Trustees

Mr Guillaume Fonkenell (Chairman) Mr Matthieu Baumgartner

Mrs Farah Jirdeh Fonkenell Mr Nicolas Sagna

Mr. Folorunso Allu (Appointed 6th December 2024)

Mr Mustafa Jama (Resigned 31st December 2024)

Chief Executive Officer

Mr Thomas Mason (Appointed in January 2025)

Mr Guillaume Fonkenell (Interim – up to December 2024)

Principal office

154 Brompton Road 3[rd] Floor London SW3 1HX

Charity registration number 1143152 Company registration number 07678862 (England and Wales) Auditor Buzzacott Audit LLP 130 Wood Street London EC2V 6DL Principal Bankers HSBC Bank Plc 16 King Street Covent Garden London WC2E 8JF Solicitors Farrer & Co LLP 66 Lincoln’s Inn Fields London WC2A 3LH

PHARO FOUNDATION AT A GLANCE

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Key Results In Numbers

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Pharo Schools in Ethiopia
registered a
15%
100% point
difference in
passing rate
370,772 in the national exams average learning
livestock and scores of Somaliland
Early Childhood
Development
25,529
people Centre
benefiting pupils vs
from our non-admitted
Somaliland pupils
water points
4,750
Pharo School
students
67,948
people reached
8,072
through
cubic meters of
non-communicable
disease awareness concrete produced
by Pharo Ventures
campaigns in
Somaliland
Somaliland and Kenya.
in 2024
10,238 95%
people screened of Technical and
Vocational Education
Training center
graduates have secured full-time
employment since graduating.
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Key

Mission 1 (M1) - Education Mission 2 (M2) - Water

Mission 3 (M3) - Productivity

Trustees’ Report (Strategic Report)

Development on a Mission

Pharo Foundation is a mission-driven, impactoriented organisation that designs, funds, and operates economic development programmes around three central missions. We have over 700 employees across Kenya, Rwanda, Ethiopia, Somaliland and London. We operate through two main divisions:

Pharo Development - Focuses on fostering longterm socio-economic development by educating the next generation, addressing water scarcity, and unlocking economic productivity in the countries we operate.

Pharo Ventures - A permanent capital fund that provides patient capital and takes a longterm investment approach. Our goal is to derisk opportunities, attract additional capital, and accelerate economic transformation in the markets where we operate.

2023 was a major turning point for the Foundation from a strategic standpoint. We joined the world of ‘moonshot philanthropy’, as we streamlined our activities into three key missions: empowering the next generation through education, solving Africa’s water shortage, and removing obstacles to productivity and employment. With a much clearer brief in hand, we have taken our first steps towards mission achievement in 2024 and consolidated our strategy, refraining from further geographical expansion this year. Regardless, a look at our achievements in 2024 makes it clear that we are a ‘do-tank’, not a ’think-tank’, i.e. we are an organisation that thinks deeply about how best to do development and turns these thoughts into measurable action.

In terms of individual mission achievements, the highlights have been many, but the key ones have been the following. On education, if we look at the performance of our Pharo branded schools,

our Pharo Schools in Ethiopia have outperformed, 7 by attaining a 100% passing rate in the national exams at both Grade 8 and Grade 12. Another highlight was the donation by Pharo Management and Pharo Foundation of a piano to the Homosha school, where we hosted a concert by Ethiopia’s greatest concert pianist. The event brought us global media coverage. But our impact does not end with our own schools. Our intervention in the public schools of the countries we operate in are equally important. Here, the highlight this year is our Teacher Capacity Building Programme in Rwanda, which is revolutionising learning.

On water, we confirmed our decision to make our Somaliland hafir dams the central means of delivering our water mission. These dams are the traditional large rectangular catchment basins to which we add a high-quality plastic geomembrane. By the end of the year, we had 4 such dams with an average size of 40,000 cubic meters, and a fifth one was under construction.

On productivity and employment, on the one hand, we strengthened our commitment to the fight against non-communicable diseases (NCDs) by creating an NCD centre at Hargeisa hospital, reaching more than 67,000 people through mass awareness campaigns in Somaliland and 750 in

Kenya. On the other, we continued to develop our Technical Vocational Education and Training centre in Hargeisa, with the offer of a new course on Gypsum Board Decoration and we saw 73 students graduate, with 95% of them finding employment in the space of three months.

On Ventures, in the Amhara region of Ethiopia, our first project, which is a processing facility of speciality oils for the export market, almost completed construction by December 2024. In the same month it was inaugurated ahead of plans to begin commissioning the plant production and sale of speciality oils in 2025. The facility is designed to process 50 tons of oilseeds daily, primarily sesame and niger seeds, with plans to expand capacity. It is located in the state of Amhara. Meanwhile, we also streamlined our activities at Somaliland Ventures by closing down Pharo Construction and focusing on our more profitable Ready-Mixed Concrete business.

At a strategic level, we continue to deliver impact. Our Research, Evaluation and Design (RED) team was starting to set the foundations of rigorous processes for monitoring impact in 2023. These processes 8 have been developed at scale in 2024. We have moved to a position where we can share our unique approach to capturing impact with the world. Three of the RED team’s contributions in 2024 have been the generation of a Global Monitoring Framework, an innovative camera monitoring system, and the analysis of its randomised controlled trial results on

Our Central

the learning effects of Somaliland Early Childhood Education (ECE) centres..

Finally, we launched the first-ever Pharo Schools website, which provides a framework to understand the breadth and unified vision of our education offering, whilst also individualising each school’s interface with the world through school-specific pages.

Teacher Capacity Building session

Education Water Productivity

Our History

Our current achievements are the culmination of a long and evolving history. The Foundation has gone through various phases, starting with an era of grant-giving in its early conception. Building on the experiences which the Foundation accumulated in its grant-giving phase, the Foundation reached a turning point in 2017, when our Board decided that it wanted the Foundation to be on the ground, operating the projects it invested in. Thus, we adopted an approach centred around 5 pillars. This era allowed us to see which projects had the potential to make the biggest impact, allowing us to strategise for our next steps. Now our current mission-based approach allows us to reach for the moon with ambitious targets and goals.

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Play-based learning being implemented at a partner school in Rwanda

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Grantmaking Era Pillars Era Mission Driven Era
(2011–2016) (2017–2023) (2023–Beyond)
Focus: Learning through giving. Focus: Structured strategy. Focus: Deep, impact-oriented
Activity: Issued grants to Strategy: Introduced a 5-pillar execution.
organizations like African approach focusing on: Strategy: A shift to
Education Trust and Windle Trust - Education mission-driven operations,
International. - Water signifying maturity,
Goal: Understand how to make - Agriculture sustainability, and measurable
meaningful impact. - Health results.
- Ventures (job creation)
2011 2017 2023
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Our mission is to ensure that all students have an opportunity to access a changing world.

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Our mission is to ensure that people and communities across Africa have access to

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12 ission 3: Pro uctivity Our mission is to eliminate health, financial and structural barriers to employment and productivity for working people. All programs of Pharo Foundation follow the premise that economic development, measured by GDP growth have a positive impact on the development indicators of the respective community and improve the well-being and dignity of the population. Eventually. Pharo Foundation wants to become the biggest employer in Africa. Pharo Foundation is Stri￿ng t() achieve tangible outcomes. which will be achieved through creation of jobs, strengthening the private sector and investing in entrepreneurs. people must decide whether to relocate, work informally, or remain unemployed, resulting in them becoming disen- chanted and sometimes violent in the absence of prospects, while depriving cities of what could be a natural engine of gro￿th. Even if salaried jobs exist, job search frictions. skill,% and knowledge gaps. Pinancial con,%traints. or health problems, might lead to job inismatches, lowering expected productivity and stalling economic growth. Our mission is focused on the creation of jobs and the direct or indirect contribution of these jobs to the overall economy. We recognise that barriers to employment and productivity can manifest in various forms, inclLLding education. peace, security. cllgtoms. politics, and others. However. by focusing on health. Pinancial, and structural obstacles, we aim to create a conducive environment where individuals can secure gainful emploiqnent, contribute meaningfully to the workforce, and achieve their full potential. In rural areas. remoteness means that poor access to healthcare aggravates low productivity from employees, sick days and absences. Obstacles to the smooth function- ing of the labour market extend to societal norms, whicli may lor instance limit female Workfor￿ participation, or lead to sender-based job sesregation, thereby reducing economic efficiency. Failing to address these constraints Mryll hamper long-term ecoiiomic growth. By 2050, Africa 11 be horne to nearly half of the worlds young workers entering the labour force for the first time. Thus, before creating jobs for them, we must remove obstacles to the functioning of the labour market, so that they can enter a market which functions smoothly. African economies face the dual challenges of high unem- ployment and low productivity. In urban areas, the lack of salaried jobs means that many young, working-age

We are working towards our mission goals by focusing on three types of con(3) health.

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MISSION ACHIEVEMENTS IN 2024

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Mission Achievements in 2024

Mission 1: Education

By the end of 2024, we had 4,750 students across 4 countries and 8 schools. It is undoubtedly a challenge to create a uniform education approach across such different contexts, but we have made a lot of headway in this direction, whilst preserving local colour. Whether we look at the diversity of ages, language, socio-political contexts, or remoteness, our schools are addressing complex challenges on a daily basis. First and foremost, we have affirmed our commitment to excellence in Science, Technology, Engineering and Mathematics (STEM). This is particularly evident in the partnership we have kicked off at Pharo School Nairobi with Code.org, which is a non-profit dedicated to expanding free access to computer science and Artificial Intelligence

education throughout the world. We have signed an agreement with them to develop connections, train our educators, and raise awareness via an Hour of Code Event and video. This collaboration in the context of Pharo School Nairobi is a pilot, which we will be looking to extend in our other countries of operation if it proves successful with Code.org and other organisations. We are determined to equip our pupils with the tools to become the technology shapers of tomorrow, not the technology takers, as in those who merely utilise artificial intelligence and will eventually be replaced by it.

Second, we remain determined to providing a global education that is locally rooted. This starts with the creation of opportunities for our students to engage with global counterparts in the rest of the world. For example, we have continued our initiative of weekly English conversation sessions between Sheikh School pupils in Somaliland and Latymer Upper pupils in London. Similarly, we have continued to run English conversation sessions between Homosha school pupils and staff members from Pharo Management in London. But the ultimate global exposure comes from our continued volunteer programme, whereby

Students and concert pianist with new piano – Pharo School Homosha

Pharo Management staff volunteers visit Sheikh or Homosha for a period of two weeks, and the exchange between their contrasting world views and realities is an education in itself. Meanwhile, we are ensuring that what makes our pupils distinctive, i.e. their unique culture and traditions, flourishes at our schools. This happens partly as a result of their Pharo School’s engagement with the local community. For instance at Somaliland’s Sheikh school, senior students taught English lessons at a nearby boarding school and teachers from local schools were invited to join professional development sessions and community elders met with the school administration to discuss ways to strengthen school-community collaborations, which permeates our pupils’ educational experience. We also understand that critical thinking is only possible when the individual blends cultural norms with the ideas they retain from the other/the foreign, to form the mix that makes them unique. Our Pharo Schools are providing an ever stronger framework that enables pupils to become such critical thinkers.

Our Pharo Schools in Ethiopia have outperformed, by attaining a 100% passing rate in the national exams 16 at both Grade 8 and Grade 12. For reference the Grade 12 national average passing rate is between 4 and 6%. Still in Ethiopia, another highlight was the donation of an upright piano to Homosha School by staff from Pharo Management UK and Pharo Foundation UK. As the Foundation does not engage in fundraising, this was a unique, staff-led initiative, with funds raised through a concert organised by

musically gifted members of our joint staff and their families. We even managed to create a joint choir for this purpose! We succeeded in raising £4.3k which went towards the purchase and shipping of the piano to Ethiopia, where pianos are rarer than gold, as we discovered. We then hosted a concert at Pharo School Homosha in September by Ethiopia’s greatest concert pianist, Girma Yifrashewa, who usually performs at Carnegie Hall and the Wigmore Hall. The event and uniquely uplifting story brought us global media coverage from the Guardian, Voice of America and Kenya’s Business Daily.

In Somaliland, Pharo Primary School approached Qur’an schools which operate in the morning, offering students the opportunity to join Pharo’s afternoon school while continuing their Qur’anic studies. This initiative has been well-received by the community. The KG school continues to operate at full capacity, with a waiting list for potential openings. The school also offers scholarships to children from SOS Children’s Villages and the Hargeisa orphanage center (HOC), though these students often face challenges in meeting the academic requirements. The Hargeisa orphanage center has made significant progress this year, working hard to integrate its students into the school.

The start of the new academic year saw significant changes in leadership. The Somaliland Kindergarten and primary school has transitioned from having two headteachers who shared responsibilities for the primary school, to appointing a dedicated

An exam at Sheikh Secondary School

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principal who oversees both the KG and primary school. A new headteacher has also been appointed to manage the afternoon session, a role created to accommodate the growth of the afternoon school.

As a result, Pharo KG and Pharo Primary School now have four headteachers reporting to one principal. At our Sheikh secondary school, in 2024 there were 258 students in the school, divided into 184 males (71%), 74 females (29%). This academic year, we were pleased to see that over 40% of the students who passed the entrance exam were female. To further promote gender parity, we implemented a policy ensuring that if a female student declined her place, it would be immediately offered to the next female student on the waitlist. This approach has proven effective, resulting in the proportion of female students in the current intake being twice as high as in previous classes. Meanwhile, the introduction of more rigorous assessments and the enforcement of a zero-tolerance policy for exam dishonesty have played a key role in driving academic improvements. In addition, the new principal introduced an initiative to map out the school curriculum more effectively. As part of this effort, the school will pilot a program where students will complete the IGCSE curriculum by the end of Form 2. This adjustment will allow students in Forms 3 and 4 to focus exclusively on the AS curriculum. We believe this approach will enhance AS results, as one of the key challenges in the past has been the limited time students had to prepare for the AS exams. This challenge not withstanding, nine students from the 2023 graduating class were awarded fully funded undergraduate scholarships. Eight have enrolled and are in their first or second semester. Sadly, some of them who gained acceptance from U.S. universities were denied a visa for political reasons and had to take up a place at other less prestigious universities. Finally, it is worth noting that Sheikh was approved as an SAT test center in 2024 and a Pearson exam center. On the Pearson front, over 500 students registered. Our hosting of the Pearson centre is a life-changing window that is an opening into the world for Somaliland secondary pupils.

Outside our branded Pharo Schools, our path breaking contribution to Early Childhood Education in Somaliland at large continues, quite rightly so given the pivotal role it plays in nurturing young learners. We educated 1,110 ECE pupils in 2024. Their 2024 International Development and Early Learning Assessment (IDELA) results were quite telling, in terms of the baseline performance of our

pupils when they come to our ECEs. While pupils demonstrated strong foundational skills in gross motor development, areas such as fine motor skills, literacy, numeracy, executive function, and socialemotional skills require targeted interventions. Specifically, the assessment revealed that pupils have limited prior schooling experience. Many students struggled with letter identification, print awareness, and written calculations. Challenges were observed in executive function skills like problem-solving and self-regulation. To address these gaps, we implement a comprehensive approach that includes targeted instruction, individualised support and engaging learning activities. From the teacher’s standpoint, we also collaborated with the University of Hargeisa, resulting in the training of 29 ECE teachers, setting them on a path to delivering innovative and impactful teaching practices.

At Pharo School Kigali in Rwanda, 2024 was a year of consolidation after H2 2023’s setup efforts. We had 161 learners by the end of 2024, with the brunt of our learners in Grade 1, which set a great pace for future growth. Grade 1 now has two streams to accommodate the increasing numbers. We have doubled up on our efforts to bring the two streams to full enrolment capacity. In line with our overall Pharo Schools strategy, we are determined

Play-based learning at Pharo School Kigali

to improve low entry levels of English proficiency through early literacy interventions, bolster STEM performance by addressing learning gaps in maths competency which have been identified in Grade 3, and strengthen teacher training which is one of our many Pharo Schools obsessions.

At Pharo School Nairobi, we remain committed to providing a holistic and high-quality education experience. We have introduced a range of innovative programmes designed to position our learners for future success. Initiatives like the Read Aloud Campaign are helping our students build confidence in their reading, while the Correct Books programme fosters a love for endless writing. Educational trips, literacy programmes, and skills competitions like the BIC Writing Competition, Kenya Music Festival and Speeling Bee, expanded learning beyond the classroom. Ensuring that children from underprivileged backgrounds can still access a high-quality education is a priority for us. Last year, we came up with a framework to award a small number of scholarships at the school. We decided that these scholarships would combine a screening for academic ability with financial need. In collaboration with local authorities, we gathered 18 information on student aptitudes and visited students in their homes to assess financial need. The outcome of the selection was the announcement of winners in early 2025. We have also continued our Stationery Fund, which has been running for the last five years from Playground to Grade 4, relieving parents from the strain of rushing to bookshops each term. For similar reasons, we have decided to provide snacks for all learners to promote equality and ensure that all students receive the same nutritious snacks.

Extending this logic further, it is clear to us that our educational impact cannot end at the gates of our own schools. Our intervention in the public schools of the countries we operate in is equally important, as it ensures that our schools are not islands of excellence with no influence on the development of national educational capabilities. Hence in 2024, we introduced a Teacher Capacity Building Programme in Rwanda, which is revolutionising learning in ECE centres and primary schools. We started with a pilot which was executed across five sectors and 16 schools within Gasabo District, the nation’s most densely populated region. Its aim was to train the school teachers in the play-based learning pedagogy which we have developed at Pharo School Kigali. The need to empower teachers with skills and strategies for active learning

Pharo School Nairobi student reading

through play was clear to Pharo Foundation Rwanda, because the traditional teacher-centred practices in the classroom do not allow for the active engagement and participation of all learners. Upon recommendation by the sector leaders, 6 public schools and 6 community based Early Childhood Development Centres were selected to participate in the pilot, alongside 4 private schools. We also identified a need for nationwide advocacy on effective implementation of playbased learning, which is why the programme was implemented in collaboration with Teach Rwanda. 4 mentors were hired and trained towards this effort. We see the training of school leaders as a strategic investment to create lasting positive change and improve educational outcomes in the partner schools. Hence we engaged in customised continuous teacher training on play-based learning, through school-based individualised coaching and mentorship, structured follow-up through lesson observations and leadership training. The strategic implementation aimed to maximise impact by targeting areas of high population density, thereby enhancing the programme’s potential for widespread educational advocacy and transformation. Crucially, we have engaged in data collection from both the treatment group – 16 schools - and control groups – 10 schools – with a view to publish a full analysis report in 2025.

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Mission 2: Water

On water, the Pharo Foundation continued expanding its network of hafir dams in Somaliland. By year’s end, four dams—each averaging 40,000 cubic meters—were operational, with a fifth under construction at Biyo Fadhiisinka to serve 21,000 livestock and 220 households. We also committed to further investment in water storage capacity going forward. Hafir dams, traditional rectangular catchment basins, offer a sustainable, environmentally friendly solution to drought. To improve performance, Pharo has enhanced these structures with high-quality geomembranes to reduce water seepage and extend storage duration.

In 2024, we shifted to a strategy that uses geospatial analysis to guide dam placement—ranking potential sites based on population density, rainwater capture potential, and grazing conditions, while also incorporating local political input and security considerations. This marked a turning point in how we work, enabling us to combine deep community engagement with a more scientific, data-driven approach to project selection.

That said, we are now collaborating with researchers from the University of Massachusetts Amherst to deepen our analysis through satellite imagery. This work aims to identify and evaluate existing water infrastructure, assess its effectiveness in capturing and storing water, and apply demand projections to determine where new dams should be built— or which existing ones should be refurbished—to address water scarcity more cost-effectively. For the first time, we are analyzing satellite data that spans the entire country, enabling a more objective, datadriven approach to site and investment selection, replacing earlier, more opportunistic methods. This scientific foundation also strengthens the longterm investment case for scaling our water strategy, as we build a comprehensive national dataset on Somaliland’s water infrastructure.

Pharo Foundation already has strong evidence that its dams are making a significant impact. We’ve pioneered an innovation known as the “ Camel Cam, ” a computer vision system that uses high-resolution video linked to object detection algorithms to track both the number of users and the volume of water extracted from each dam. This allows us to monitor usage by humans and livestock in near real time. At our Illinta dam, located in an area that has experienced a 56.5% loss in livestock over the past four years, the Camel Cam recorded 21,399 human visits and 223,431 livestock visits between November

2022 and March 2024. That translates to an average of 1,337 human and 13,965 livestock visits per month. Given that Somaliland has an exceptionally high livestock-to-human ratio, the potential impact on livelihoods is clear. Importantly, the data also reveals a strong seasonal pattern: dam usage spikes during dry periods as other water sources disappear. This underscores the critical role our dams play in safeguarding water access and livelihoods during times of scarcity.

Thanks to the Camel Cam , the Pharo Foundation has clear evidence that its hafir dams are delivering real results. But while effective, building two dams per year is not enough to solve Somaliland’s water scarcity crisis. Each dam costs approximately USD 500,000, and with a current budget of USD 1 million annually, we can only fund two new sites per year. Solving this challenge at scale will require broader collaboration. That’s why we are actively seeking partners to help us scale a proven, high-impact solution, not just across Somaliland, but in droughtaffected regions beyond, where the need is just as urgent.

Beyond Somaliland, Pharo Foundation also delivered high-impact water initiatives in Kenya and Ethiopia. In Kenya, we responded to the May 2024 floods with a relief drive in partnership with the Mathare Social Justice Centre, matching public donations to support over 100 families affected by the flooding in Nairobi. In Ethiopia, we launched solar-powered water projects in April across five kebeles (Homosha, Shaga, Tumet Aziz, Undulu, and Alahamer) in the Benishangul-Gumuz region. These systems include deep wells, elevated reservoirs, extensive pipelines, and multiple community water points, and now provide safe, sustainable water to over 25,000 people. Solar panels and pumps ensure reliable access, even in off-grid areas. This work was delivered in partnership with Grundfos. Across all our project sites, we also prioritize water access for clinics and schools, recognizing that clean, reliable water is essential for improved health services and a safe, supportive learning environment.

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Shanshacade dam construction progress

Our solar-powered water systems in Benishangul-Gumuz

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Mission 3: Productivity

Our mission to remove obstacles to productivity and employment has continued to be delivered through two means: the reduction of ill-health and the facilitation of the transition from education to employment. On the one hand, we strengthened our commitment to the fight against noncommunicable diseases (NCDs), as we have identified them as a silent and under-diagnosed killer in our countries. We opened a new NCD centre at Hargeisa Hospital as public service to the Hargeisa city. 12,000 people have been screened since inception 16 months ago, 271 health workers trained, and 67,948 people reached through mass awareness campaigns. Similarly, in Kenya we embarked on a mission to raise awareness about diabetes and the importance of early detection through a comprehensive screening camp initiative in November. The campaign was part of our commitment to enhance community health and fostering impactful engagements within Komarock, Kayole, Umoja, Donholm, and Saika. Through our collaboration with Komarock Modern Hospital, we provided free screenings for blood sugar levels, blood pressure, Body Mass Index (BMI), and general wellness. Alongside the health screenings, we facilitated lifestyle improvement discussions to

empower attendees with actionable knowledge on improving their quality of life, thereby reaching 750 patients.

On the other hand, with a view to continue facilitating the transition from education to the world of employment, we further developed our Technical Vocational Education and Training centre in Hargeisa, with the offer of an additional course of Gypsum Board Decoration and we saw 73 students graduate for 633 applicants, with 95% of them finding full-time employment in the space of three months. One particularly uplifting story on this front is that the Hargeisa Water Agency advertised for 5 plumbers at the end of 2024, received 34 applications, of which 13 were our graduates. Our graduates secured four of these positions, which is a great milestone and a testament to the quality of our training programmes. Looking ahead, we want to think of ways to tie our certification to specific employment opportunities, given our emphasis on helping individuals put their education to good use from the cradle to the ultimate career reinvention. In Somaliland, we have explored how a collaboration with the Hargeisa Technical Institute could be shaped to produce such an outcome.

NCD testing in Assosa

PHARO VENTURES

Ventures

Ventures are the ultimate embodiment of our third mission of employment and productivity, because their purpose is African job creation and the capturing of economic value in Africa. This year, we have made a lot of strategic headway on conceptualising Ventures, which is a prerequisite to launching production and going into action mode in 2025.

As a social impact-driven organisation looking for both social and financial return, Pharo Ventures has always been committed to investing in sectors that will bring transformational changes to value chains and underserved communities. But one of the conclusions from 2024 was the idea that we need to prioritise sectors that will help us achieve our employment and productivity mission by tapping into our countries’ competitive advantages.

Ethiopia

1. It is built on direct and continuous engagement with producers

Because equality begins at the input and farm level, our oil processing plant uses the best raw materials, which are sourced ethically from suppliers. In 2024, we signed a Memorandum of Understanding (MoU) with over 7,000 smallholder farmers involving 3 unions and 3 commercial farms, to source quality raw materials. 15% of them are women. We are building a robust supply chain that will prioritize quality and traceability throughout our sourcing work, and are developing a seed multiplication

centre, supporting local farmers and ensuring sustainability across the supply chain.

Our partnership with smallholder farmers facilitates access to inputs and linkage with financial institutes, which can in turn facilitate affordable credit for our partner small holder farmers. It also facilitates agronomy support, as Ethiopia Ventures has also signed an MoU with Gondar University in 2024 to boost crop productivity and enhance suppliers’ sustainable agricultural practices.

2. Its product satisfies the demands of a growing consumer base

Our seeds are not refined, ultra-processed seeds. They preserve nutrients in an organic and biodiverse environment. This means that our product offering is well-adapted to the growing niche of healthconscious and environment-conscious consumers. In that sense, our profits are intricately tied to our environmental and social impact because our customer demands it.

3. It includes a regenerative farm

In 2024, we were given 1000ha of farmland towards the development of a commercial regenerative farm, which will be the perfect complement to our oil seed product.

Pharo RMC Somaliland concrete mixer and boom truck

Somaliland Ventures construction vehicle

Somaliland

The other strategic decision which we made on Pharo Ventures, this time in Somaliland was to streamline our activities by closing down Pharo Construction business under Pharo Construction Somaliland Limited (PCL) and focusing on our now profitable Ready-Mixed Concrete business.

In 2024, the PCL completed 7 projects: the Ali Yusuf Building (Commercial), Hersi Building (ResidentialBungalow), Dr Saeed Villa (Residential 2-storey), Sanset Building for DPW (Educational-Uni), Shulac Horn Petro Station (Commercial), Basma Villa (Residential-Bungalow), Hussein Berbera Appartements (Residential – 2 storey apartments). In particular, the SANSET Laboratory, Sheikh University was funded by DP World Berbera. The SANSET Laboratory project has been a pivotal milestone. Despite logistical complexities due to its distance from Hargeisa, the project was successfully managed and executed to high standards, reflecting our expertise in handling large-scale developments in remote locations.

Another key project was Shulac Petro Station. Funded by Horn Petroleum, the Shulac Petro Station project was strategically located, offering immense potential for increasing Pharo Construction’s visibility. The importance of this location made it a priority, and its successful completion underscores our ability to deliver impactful projects in key areas. Finally, Dr. Saeed’s villa was another important milestone. This luxurious villa, funded by Premier Bank, exemplified our capacity for high-end residential construction. Combining sophistication

and functionality, the villa stands as a testament to our proficiency in meeting client expectations for premium developments.

While these PCL projects had their positives, the strategic decision was made to focus on the ReadyMixed Concrete (RMC) business and divert the use of the existing vehicles and equipment from PCL 25 to a new machine rental business. This allowed for more focus to be put onto the thriving RMC business.

Indeed, in 2024, our Ready-Mix Concrete (RMC) operations continued to deliver strong performance with a total volume of 8,072 cubic meters and sales reaching $1m. This marks a slight increase in volume over the previous year (2023: 7,415 m³) and represents our highest annual revenue to date. We also set a new record in terms of volume of concrete sold at 8,072 cubic meters. We have seen strong growth momentum since inception, as revenue has risen by more than 550% in the last two years. Our customer base is diversifying, though a few large clients drive the majority of orders. Our biggest customer was Somaliland Hono Group, which made 66 orders of cement for the reconstruction of the Waheen Market, resulting in 4,810 cubic meters of concrete being delivered. Other major customers were Pharo Construction in the context of in-house orders, AA Studio Architects for whom we sourced concrete for a variety of commercial buildings, Hargeisa Theatre and Maan Construction which used our concrete for residential properties. The average customer satisfaction score was an impressive 4.64/5. We also had a 100% order success rate, which showcased our operational consistency and delivery reliability. We also had 22 returning clients and a retention rate of 31.4%.

Research and Evaluation (RE) 26

Research and Evaluation (RE)

In 2024, the RE team launched Pharo Foundation’s first Global Monitoring Framework, (GMF), a comprehensive system that defines how we design, monitor, and evaluate programmes across all sectors. The GMF tracks outcomes at every stage, from early-stage investment decisions to final impact assessments, and produces clear, actionable KPIs for programme teams and leadership. By embedding a consistent, evidence-based approach across our portfolio, the GMF reinforces accountability, supports data-driven decisions, and ensures that we scale what works and adapt what doesn’t.

On education, the RE team is leading Somaliland’s first randomized controlled trial (RCT) of an Early Childhood Education (ECE) programme, conducted in collaboration with a researcher from UC Berkeley. In a context where ECE enrollment is just 7%, this lottery-based evaluation isolates the impact of attending Pharo Foundation ECE centres from other factors. The results are remarkable: children enrolled

in our centres saw an overall developmental gain of +1.07 standard deviations, with exceptionally large improvements in literacy (+1.44 SD) and numeracy (+1.32 SD), and meaningful gains in motor skills and socio-emotional development. These are among the highest ECE impacts recorded in Africa. The study also finds strong spillovers at home, including a significant increase in parental engagement and academic activity. A draft paper is underway for submission to an academic journal, contributing rigorous evidence on cost-effectiveness and the case for scaling quality ECE in low-access settings.

On water, the RE team has pioneered the Camel Cam, a scalable computer vision system that allows us to precisely monitor the impact of our dams and track progress toward our water mission. Installed at three Somaliland dam sites, Camel Cam combines high-resolution video footage with object detection algorithms to provide real-time data on human and livestock usage, including repeat visits. This technology offers a systematic, continuous alternative to traditional manual monitoring methods, such as surveys and enumerator logs, significantly improving the accuracy and efficiency of impact measurement. It also reveals seasonal 27 patterns of reliance and captures the dual role of our dams in serving both local residents and mobile pastoralist communities. Ultimately, Camel Cam strengthens our ability to manage water resources, supports climate adaptation planning, and may even lay the groundwork for innovative financing tools like water credits.

RED team installing an AI camera

STRUCTURE,, GOVERNANCE AND MANAGEMENT

Structure, Governance and Management

and commercially viable enterprises. Pharo Ventures was established by the Foundation in 2019 to support its vision of a self-reliant Africa through sustainable social enterprises. These ventures contribute to economic growth by creating jobs, generating long-term economic value, and generating profits over time.

Governing document

Pharo Foundation is constituted as a company limited by guarantee (Company No. 07678862) and operates under the terms of its Articles of Association. It is registered with the Charity Commission (No. 1143152).

Trustees are appointed through an ordinary resolution and serve for a term of three years, with the option to seek reappointment. Current Trustees have been selected for their skills, experience, and alignment with the Foundation’s mission. All Trustees receive an induction pack outlining their legal responsibilities and including key governance and policy documents.

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Inauguration of our new Assosa office

Organisational structure

Pharo Foundation is a growing organisation, with its Trustees providing regular oversight of its work. The group ownership and control of various entities are outlined in Note 11 of the financial statements. The Foundation consists of two arms: the non-profit Pharo Development, commonly and externally known as Pharo Foundation in the countries of operation and the for-profit Pharo Ventures. Both are committed to achieving the Foundation’s mission, albeit through different approaches. Pharo Development focuses on delivering public goods and implementing not-for-profit projects, while Pharo Ventures invests in private sector initiatives

The Trustees who held office during the period ending 31 December 2024 and up to the date of approval of these financial statements were:

No Trustee received any remuneration for their services, nor held any beneficial interest in contracts

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with the Foundation during the year. Trustee expenses are disclosed in Note 8 of the financial statements.

Day-to-day management of the Foundation’s operations and implementation of its policies is delegated to the Chief Executive Officer (CEO). In 2024, Guillaume Fonkenell served as Interim CEO while a global search was undertaken for a permanent appointment. This concluded with the hiring of Thomas Mason, who assumed the CEO role in January 2025.

The key management personnel responsible for directing, controlling, running, and operating the charity on a day-to-day basis include the CEO, who is guided by the Trustees. The Executive Team is comprised of the CEO and three senior officers who oversee core operational and strategic functions. These are:

Governance Sub-Committees

To strengthen governance and ensure effective oversight, the Trustees have established three core sub-committees. These committees meet ahead of each quarterly Trustees’ meeting and are responsible for reviewing matters in greater depth to support well-informed decision-making. Each committee comprises two Trustee voting members, with relevant Executive Team members attending in a non-voting or observer capacity.

Investment Committees

Pharo Foundation has four dedicated Investment Committees (ICs), aligned to the Foundation’s core areas: Education, Water, Productivity, and Ventures. These committees assess new programme, investment and project proposals. Only proposals endorsed by the relevant IC are submitted to the full board of Trustees for final approval. The ICs’ scope and constitution are summarised as follows:

as voting members; non-voting members include project sponsors and members of

the Executive.

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IC Focus Area Trustee Voting Non-Voting Members
Members
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IC Focus Area Trustee Voting
Members		 Non-Voting Members
Education (M1) Farah Jirdeh
Fonkenell, Nicolas
Sagna		 Project sponsors,
Executive Team
Water (M2) Folorunso Allu,
Nicolas Sagna		 Project sponsors,
Executive Team
Productivity (M3) Guillaume Fonkenell,
Nicolas Sagna		 Project sponsors,
Executive Team
Ventures Guillaume Fonkenell,
Folorunso Allu		 Project sponsors,
Executive Team

Finance and Audit Committee

This committee provides oversight of the Foundation’s financial integrity. It is responsible for reviewing audit outcomes, financial statements, risk management systems, and the effectiveness of internal controls. The committee’s scope and constitution are summarised as follows:

Membership Composition:

Talent and Compensation Committee

Statement of Trustees responsibilities

The Trustees (who are also directors of Pharo Foundation for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the income and expenditure of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the Trustees confirm that:

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

The Trustees are responsible for the maintenance and integrity of financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Risk management

The Trustees continuously assess the major risks to which the charity is exposed. As part of this process, 31 the risk management matrix was reviewed and updated in November 2024 to ensure it reflects the evolving internal and external environment in which the Foundation operates.

The risk register identifies 24 potential risks under nine major categories: governance and management, legal and regulatory compliance, investment, operational, financial, external, reputational, impact, and data security. For each risk, the register outlines potential causes and consequences, the controls in place to manage the risk, and a residual risk rating based on likelihood and impact (low, medium or high). The risk register is reviewed by the Finance and Audit Committee and the Board of Trustees at least once annually.

A key change in 2024 was the decision to embed risk management more deeply into operational oversight by the Executive Team to ensure effective and continuous risk management. A new enterprise risk management (ERM) framework is being developed in line with best practices, and this will be in place in 2025. The following remain among the major risks identified, with appropriate controls in place:

Risk Category Risk Description Potential Consequences Mitigation Measures
Legal and Regulatory
Compliance		 Non-compliance with laws
and regulations across
jurisdictions		 Fines, legal proceedings,
reputational damage, or
suspension of activities		 Annual legal reviews;
country-specifc legal advice;
independent compliance
audits where appropriate
Security and Stability Political or social instability in
operating countries		 Programme disruption, staff
safety risks, asset loss		 Regular country-level risk
assessments and security
plans; comprehensive staff
insurance; local emergency
protocols
Financial Mismanagement
or Fraud		 Fraud, fnancial errors, or weak
internal controls		 Financial loss, regulatory
scrutiny, reputational damage		 Strong internal controls;
monthly fnancial reporting
and variance analysis; annual
external audits; internal audit
function starting in 2025
Reputational Misalignment with
stakeholder expectations or
poor brand management		 Loss of stakeholder trust,
negative publicity, reduced
infuence		 Oversight by the Finance and
Audit Committee; country-
level communications
support and brand guidance;
consistent stakeholder
engagement
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Data Security and IT Systems Data breaches, cyber threats,
or failure of digital systems		 Loss of sensitive data, service
disruption, legal exposure		 Multi-factor authentication;
data encryption; regular IT
security reviews; staff training;
oversight by the Global IT
team

Fundraising

The Foundation does not actively seek donations from the public therefore it has not registered with the Fundraising Regulator. It does not use the services of any third-party organisation to help in its fundraising activities and no complaints were received about its fundraising activities during the financial year.

Public benefit

All the Trustees are conversant with the Charity Commission’s guidelines concerning charities and public benefit and have given consideration to them when assessing the charity’s activities. The Trustees believe that they have complied fully with the duty in Section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Commission.

• Compliance with Trustees Duties under Section 172(2) Companies Act 2006

Trustees must act in the way they consider, in good faith, would be most likely to promote success to achieve its charitable purposes. The Trustees, in doing so, delegate day to day management and decision-making to the Chief Executive, who, with other key management, is required to act to further its strategy and to ensure that the activities are carried out in compliance with agreed plans and policies. The Trustees receive updates on performance and plans at each Board of Trustee meeting. In carrying out their duties, the Trustees have regards (among other matters) to:

• Foster the charity’s business relationships with suppliers, customers and others:

Our network of collaborations includes working with various stakeholders such as vendors, individuals’ communities and various government sectors in

a move to positively contribute towards improving the livelihood of people through increase access to education, agriculture, health and water.

These partnerships are key to our work in Africa. Mutual respect together with transparency, trust and accountability form the basis of our work with others. Overall, our values govern our procurement process and all our suppliers must comply with our code of conduct and principles of our procurement policy.

Carbon Reporting Exemption

Pharo Foundation qualifies for a carbon reporting exemption under the Carbon Reporting (Amendment) Regulations 2018, as our energy consumption within the UK remained below 40,000 kWh during this period. We remain committed to environmental responsibility and will continue to implement sustainable practices to reduce our carbon footprint in line with our mission.

Inclusivity Policy for Disabled Individuals

The Foundation ensures fair consideration for job applications from disabled individuals. We are committed to workplace adjustments, tailored training, and career development opportunities, in line with the Equality Act 2010, to support an inclusive work environment.

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Financial Review EOS, 34

35

Financial Review

Financial Overview and Resource Allocation

Pharo Foundation (the Group) recorded total income of US$ 52.1 million in 2024, almost double the amount received in the previous year. This increase was mainly due to a rise in donations and Gift Aid refund, alongside contributions from charitable activities, social ventures, and investments.

Donations amounted to US$ 37.7 million, significantly higher than in 2023. The increase was driven by a new contribution from individual donors. As in previous years, a large portion of this funding was channelled through Pharo Development Investment Limited (PDIL), which serves as the primary vehicle for distributing profits generated by Pharo Management (UK) LLP. Income from charitable activities rose by 134% to US$ 2.71 million. This was mainlydue to the first full year of operations at Pharo School Kenya and increased pupil enrolment in both Somaliland and Rwanda. Social ventures trading income reached US$ 2.19 million, reflecting growth mainly in Pharo Construction Somaliland’s Ready-Mix Concrete business unit which had improved operations and revenue growth. Investment income for the year totalled US$ 9.46 million, compared to US$ 23.01 million in 2023. The decrease was due to a lower profit share from Pharo Management (UK) LLP which totalled US$ 7.80 million for the year. A total of US$ 1.65 million was earned as interest from money market investments of funds at hand.

Spending on the Education Mission increased to US$ 11.1 million, mainly due to the expansion of the school network, including higher running costs associated with new and growing schools. Water Mission expenditure decreased to US$ 2.1 million, following the completion of several large infrastructure projects in Ethiopia that were ongoing in the previous year and projects whose

implementation was pushed back to 2025 financial year. The Productivity Mission recorded expenditure of US$ 1.8 million, slightly lower than in 2023. This was mainly due to the completion of agricultural activities during the year. Ventures-related expenditure rose by 53% to US$ 5.22 million including cost of sales and operating expenses. This was due to increased activity in Somaliland through Pharo Construction, and the ongoing set-up of a new edible oil production plant in Ethiopia.

During the year, Ethiopia experienced a devaluation of the birr (ETB). The Foundation was not materially affected, as it does not maintain substantial cash holdings in local currency. Funds are mainly held in USD and transferred to Ethiopia as required. This approach helped reduce exposure to currency losses. Local budgets were reviewed to reflect exchange rate movements and operations continued without major disruption. Overall, the Foundation is now receiving a market value per each USD funding, hence the cost of doing business has gone significantly down.

As of 31 December 2024, the Group’s unrestricted funds totalled US$ 65.2 million. Of this amount, the net book value of tangible and intangible assets was US$ 11.4 million. Additionally, US$ 1.8 million was held

36

as impact investments. The Trustees also designated US$ 48.4 million for future programme activities, leaving a general unrestricted funds balance of US$ 16.8 million.

Overall, the Group’s operations continued to strengthen in 2024, with steady progress across our mission areas. We delivered a full year of operations at Pharo School Nairobi and saw increased enrolment in our schools in Somaliland and Rwanda. The Foundation remains focused on programme quality, operational effectiveness and efficiency, and sound financial management to support its mission in the years ahead.

Investment policy

Pharo Foundation or the Group had an investment portfolio valued at US$ 1.8 million as of 31 December 2024 (2023: US$ 1.8 million). In the charity’s standalone financial statements, total investments were recorded at US$ 16.2 million (2023: US$ 12.1 million), the majority of which represents shares issued to its subsidiaries. The Foundation’s investment objective is to build social ventures and invest in companies that create jobs and economic value. These investments provide insights into African operating environments and opportunities, aiding the advancement of the Foundation’s charitable objectives.

The Trustees possess significant investment experience and expertise. They conduct thorough due diligence and carefully evaluate each investment proposition in both financial and mission-related terms before making an investment decision. The performance of investments is monitored periodically by the Trustees.

Over the past 12 months, the value of the unlisted impact investment portfolio has remained unchanged. The increase in investments in subsidiaries to US$ 14.4 million in 2024 (2023: US$ 10.3 million) reflects additional capital contributions made by the Foundation to support the development and expansion of its social ventures.

Reserves policy

Pharo Foundation has committed to several charitable programmes, projects, social ventures and grants with ongoing financial commitments. Accordingly, the Trustees monitor the level of reserves throughout the year to ensure the Foundation can meet its ongoing financial commitments and wider operational obligations.

At Group level, designated reserves stood at US$ 48.1 million as at 31 December 2024 (2023: US$ 13 million), while the Foundation’s standalone designated reserves totalled US$ 58.2 million (2023: US$ 36.5 million). These balances include funds allocated for future programme delivery, mission-aligned investments, and an operational reserve US$ 15 million to cover 12 months of operating cash needs. Further detail is provided in Note 17 to the financial statements.

General funds are those not yet committed and are therefore available for future programme spending or to support new opportunities.

Approved by the Trustees and signed on their behalf by:

Mr Guillaume Fonkenell,

Trustee – Chairman

Approved by the Trustees on: 24 June 2025

Independent Auditor’s Report For the year ended 31 December 2024

37

38

Independent Auditor’s Report

For the year ended 31 December 2024

Independent auditor’s report to the member of Pharo Foundation

Opinion

We have audited the financial statements of Pharo Foundation (the ‘charitable parent company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2024 which the comprise the group statement of financial activities, the group and charitable parent company balance sheets and statement of cash flows, the principal accounting policies and the notes to the financial statements. 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 auditor’s 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and charitable parent 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.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report and financial statements, other than the financial statements and our auditor’s report thereon. 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.

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Independent Auditor’s Report

For the year ended 31 December 2024

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 knowledge obtained in 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the charitable parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report including the strategic report.

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

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 charitable parent 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 charitable parent company or to cease operations, or have no realistic alternative but to do so.

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Independent Auditor’s Report

For the year ended 31 December 2024

Auditor’s responsibilities for the audit of the financial statements

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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and those responsible for legal and compliance procedures and a review of minutes of Trustees’ meetings.

We assessed the susceptibility of the group and charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

41

Independent Auditor’s Report

For the year ended 31 December 2024

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

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

Peter Mackereth (Senior Statutory Auditor) For and on behalf of Buzzacott Audit LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

Date: 25 June 2025

42

Consolidated Statement of Financial Activities

(For the year ended 31 December 2024)

(For the year ended 31 December 2024)
Notes Group
1 Jan 2024 to
31 Dec 2024
US$
Group
1 Jan 2023 to
31 Dec 2023
US$
Income from:
Donations and legacies
1
Charitable activities
2
Social ventures trading
3
Investment
4
Total income
Expenditure on:
Social ventures trading
5
Charitable activities
6
Total expenditure
Minority interests
Net income before investment gains
Net income
Other recognised gains/losses(Losses) on foreign exchange
Net movement in funds
7
Total funds brought forward
Total funds carried forward		 37,742,689
59,627
2,710,749
1,157,084
2,192,583
1,584,403
9,459,471
23,008,123
52,105,492
25,809,237
5,220,543
3,417,452
15,002,118
14,899,302
20,222,661
18,316,754
243
169
31,883,074
7,492,653
31,883,074
7,492,653
(4,389,687)
(438,858)
27,493,387
7,053,795
37,727,288
30,673,493
65,220,675
37,727,288

All income and expenditures for the current and prior year are unrestricted. Pharo Foundation has no recognised gains or losses other than those shown above.

43

Statement of Financial Position

(As of 31 December 2024)

(As of 31 December 2024)
Notes Group
2024
US$
Group
2023
US$
Foundation
2024
US$
Restated
Foundation
2023
US$
Fixed assets
Tangible assets
9
Intangible assets
10
Investments
11
Debtors due after one year
12
Current assets
Inventory
13
Debtors due within one year
14
Cash at bank and in hand
Creditors: amounts falling due
within one year
15
Net current assets
Non current liabilities
Creditors: amounts falling due after one
year
16
Total net assets
Minority interests
Net assets attributable to Group
Funds of the charity:
Unrestricted Funds
- General funds
- Designated funds
17		 10,323,748
11,186,710
6,712,191
7,044,477
1,135,033
791,321
1,135,033
791,321
1,804,766
1,804,766
16,187,518
12,128,605
205,504
81,074
205,504
81,074
13,469,051
13,863,871
24,240,246
20,045,477
76,878
105,101
44,632
89,388
4,677,021
1,787,152
3,626,412
939,903
49,343,874
24,398,460
48,777,378
22,496,885
54,097,773
26,290,713
52,448,422
23,526,176
(2,173,566)
(2,426,806)
(1,580,205)
(1,836,573)
51,924,207
23,863,907
50,868,217
21,689,603
(172,252)
-
-
-
65,221,006
37,727,778
75,108,463
41,735,080
(330)
(490)
-
-
65,220,676
37,727,288
75,108,463
41,735,080
17,035,708
24,735,814
16,826,732
22,561,985
48,184,968
12,991,474
58,281,731
19,173,095
65,220,676
37,727,288
75,108,463
41,735,080

Approved by the Trustees of Pharo Foundation, Company Registration No. 07678862 (United Kingdom) and Charity Registration No.1143152 (England and Wales) and signed on their behalf by:

Mr Guillaume Fonkenell, Trustee - Chairman Approved on: 24 June 2025

44

Statement of Cash Flows

(As of 31 December 2024)

Statement of Cash Flows
(As of 31 December 2024)		 Statement of Cash Flows
(As of 31 December 2024)
Group
1 Jan 2024 to
31 Dec 2024
US$
Group
1 Jan 2023 to
31 Dec 2023
US$
Cash fows from operating activities:
Net cash (used in) operating activities
Cash fows from investing activities:
Income from investments
Purchase of tangible fxed assets
Purchase of intangible fxed assets
Net cash provided by investing activities
Cash fows from fnancing activities:
Cash infows from new borrowing
Net cash provided by / (used in) fnancing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at 01 January 2024
Change in cash and cash equivalents due to exchange rate movements
Cash and cash equivalents at 31 December 2024		 20,340,464
(14,332,089)
9,459,471
23,008,123
(4,322,368)
(6,906,292)
(286,653)
(804,733)
4,850,450
15,297,098
279,799
-
279,799
-
25,470,713
965,009
24,398,460
23,296,985
(525,299)
136,467
49,343,874
24,398,460
Analysis of changes in net debt
Cash at bank and in hand
Loans falling due within one year
Loans falling due after more than one year
Total		 Group
1 Jan 2024
US$
Cash fows
US$
Foreign
exchange
movements US$
Group
31 Dec 2024
US$
24,398,460
25,470,713
(525,299)
49,343,874
-
(107,942)
396
(107,547)
-
(172,886)
634
(172,252)
24,398,460
25,189,885
(524,270)
49,064,075

Reconciliation of net income/(expenditure) to net cash flow from operating activities

Reconciliation of net income/(expenditure) to net cash fow from operating activities
Group
1 Jan 2024 to
31 Dec 2024
US$
Group
1 Jan 2023 to
31 Dec 2023
US$
Net income for the reporting period
(as per the statement of fnancial activities)
Adjustments for:
Finance cost / Interest expense
Depreciation charges
Amortisation of Goodwill
Disposal of fxed assets
Income from investments
Decrease (Increase) in Inventory
(Increase) in debtors
Increase in creditors
Net cash used in operating activities		 31,883,074
7,492,653
2,930
-
1,154,008
961,124
106,786
13,412
-
3,467
(9,459,471)
(23,008,123)
28,223
57,982
(3,014,299)
(607,651)
(360,787)
755,047
20,340,464
(14,332,089)

45

Principal Accounting Policies

(As of 31 December 2024)

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of preparation

These financial statements have been prepared for the year to 31 December 2024. The financial statements are presented in US Dollar and are rounded to the nearest Dollar.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), Companies Act 2006 and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

Basis of consolidation

The Consolidated Financial Statements incorporate the results of the charity and its subsidiaries, as listed at note 11, for the year ended 31 December 2024. The acquisition method of accounting has been adopted. Under section 408 of the Companies Act 2006 and the SORP, Pharo Foundation is exempt from the requirement to present its own Statement of Financial Activities.

Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including experience of future events that are believed to be reasonable under the circumstances. The Foundation makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results.

The items in the financial statements where significant judgements and estimates have been made include:

Estimating the useful economic lives of fixed assets

The assets of the Foundation are primarily held overseas. The useful economic life of certain assets, applied for the purposes of calculating depreciation, have therefore been assessed as being shorter than that which would ordinarily be applied to the same asset class located in the UK. This is due to the difference in the accounting standards applicable across different jurisdictions.

Determining the value of assets granted from overseas Governments

The Foundation has been granted the use of certain assets by overseas governments to support the delivery of its charitable programmes. While legal ownership of these assets remains with the respective governments, the Foundation assumes the risks and rewards of usage for the duration of the agreements. These assets are provided under long-term, non-commercial arrangements that do not confer rights of disposal or financial gain. As such, and due to the absence of a reliable method for measuring their fair value under the specific terms granted, no value has been recognised in the financial statements.

The Foundation continues to derive operational benefit from these sites in the course of delivering programme activities. Their use is periodically reviewed as part of broader risk and asset management processes. Expenditure on improvements to these sites is capitalised in accordance with the Foundation’s

46

Principal Accounting Policies

(As of 31 December 2024)

accounting policy for tangible fixed assets, where the criteria relating to control, future economic benefit, and reliable measurement are met.

Goodwill Amortisation

The Foundation made an acquisition of assets and paid an amount exceeding the fair value of the net identifiable assets, resulting in goodwill. This goodwill is amortised over a period of 10 years, reflecting the estimated useful life over which the economic benefits are expected to be derived.

The valuation of unlisted investments

The group holds unlisted investments in three companies. These are included in the financial statements at fair value, using a quoted market price or evidence of recent transactions. If fair value cannot be measured reliably investments are measured at cost less impairment. The trustees have made the following assessment in relation to each holding.

Impairment of Investments in Subsidiaries

Determining whether investments in subsidiaries are impaired is a matter of significant judgment and subject to estimation. In assessing whether there is any indication of impairment of investments in subsidiaries, the Trustees calculate the recoverable amounts from such investments based on the conditions and business plans for the subsidiaries at the date of these separate financial statements. This involves evaluating the financial health, future prospects, and operational performance of the subsidiaries.

Determination of overseas operations as a branch or subsidiary

The Group operates in and has a locally registered presence in overseas countries, as detailed in the trustees’ report. The legal structures available for these operations vary between countries. For the purposes of these financial statements the trustees have made an assessment of whether the locally registered presence should be classified as a branch or a subsidiary by aligning the local registration type with the most comparable format of registration under UK laws.

Other judgements applied by management include:

Going concern

The Trustees have assessed the appropriateness of the going concern assumption in preparing these financial statements. This assessment has been made for a period of at least twelve months from the date of approval of the financial statements.

47

Principal Accounting Policies

(As of 31 December 2024)

The Trustees are satisfied that there are no material uncertainties that cast significant doubt on the ability of the Foundation to continue as a going concern. The Foundation remains in a strong financial position, supported by substantial unrestricted reserves that are sufficient to meet its planned programme and operational commitments.

While the Foundation operates in a region where political and economic challenges—such as inflationary pressures and security risks—are an ongoing consideration, the Trustees are confident that these factors do not materially affect the Foundation’s ability to continue its activities. The organisation’s diversified programme portfolio, prudent financial management, and level of reserves provide a stable platform for ongoing operations.

Income

Income is recognised in the period in which the charity has an entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.

Donations, including amounts received under Gift Aid, are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable.

Income from charitable activities is recognised in the period in which the service is provided. Where income is received in advance of meeting any performance-related conditions, and there is no unconditional entitlement to the income, it is recognised as deferred and included in creditors as deferred income until the performance conditions are met.

Income from investment is received from PDIL. It is measured at the fair value of the consideration received or receivable, excluding any discounts or rebates.

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.

Construction income from social ventures applies percentage of completion (“PoC”) of the contract to estimate the revenue to be recognized during the year. The stage of completion of a contract may be determined by a variety of ways. Depending on the nature of the contract, revenue is recognised as contractually agreed technical milestones are reached, as units are delivered or as the work progresses.

Expenditure

Liabilities are recognised once there is a legal or constructive obligation to make a payment 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. All expenditure is inclusive of irrecoverable VAT. All expenditure is accounted for on an accrual basis.

Expenditure comprises the following:

48

Principal Accounting Policies

(As of 31 December 2024)

Tangible fixed assets

All tangible fixed assets costing more than $200 and with an expected useful life exceeding one year are capitalised. Assets are depreciated when they are brought into use. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

IT equipment 3 years estimated useful life Intangible assets 3 years estimated useful life Furniture and fittings 3 years estimated useful life Motor Vehicles 2 to 5 years estimated useful life Plant and Machinery 5 years estimated useful life Building 20 years estimated useful life Leasehold Improvement 3 to 5 years estimated useful life Leased Land Over lease period Freehold No depreciation Construction in progress No depreciation

Construction in progress comprises of partial completed proportion of the buildings measured at cost.

Intangible Assets

All intangible assets costing more than US$200 and with an expected useful life exceeding one year are capitalised. Intangible assets are amortised from the point at which they are available for use. Amortisation is charged on a straight-line basis over the estimated useful life of the asset as follows:

Goodwill 10 years estimated useful life Software 3 to 5 years estimated useful life Websites 3 years estimated useful life Work in Progress Not amortised

Goodwill represents the excess of the cost of an acquisition over the fair value of the net identifiable assets of the acquired entity at the date of acquisition. It is initially recognised at cost and subsequently measured at cost less accumulated amortisation and impairment losses. Goodwill is amortised over a period of ten years on a straight-line basis. It is also subject to annual impairment review, and any impairment losses identified are recognised in the statement of financial activities and are not reversed in future periods. Gains and losses on the disposal of a subsidiary or business include the carrying amount of goodwill relating to the entity sold.

Intangible work in progress comprises costs related to intangible assets under development and not yet available for use. These are held at cost and are not amortised until the asset is complete and ready for its intended purpose.

Investments

Investments other than subsidiaries are included in the financial statements at fair value, using a quoted market price or evidence of recent transactions. If fair value cannot be measured reliably investments are measured at cost less impairment. Gains and losses are recognised in the statement of financial activities. Investments in subsidiaries are held at cost, less any impairment charges.

Foreign currencies

Assets and liabilities in other currencies are translated into US$ at the rates of exchange ruling at the balance sheet date. Transactions in other currencies are translated into US$ at the rate of exchange ruling at the date of the transaction. The income statements of subsidiaries in other currencies are translated at

49

Principal Accounting Policies

(As of 31 December 2024)

average rates of exchange. Exchange differences are taken into account in arriving at the net movement in funds.

Although the functional and presentational currency, as stated above, is US$, Pharo Foundation is a UK based charity and certain provisions of legal and regulatory requirements and the charity’s operating policies are stated in British Pounds (£). Within these financial statements, amounts relating to these specific requirements have also been stated in British Pounds (£).

The source of the foreign currency conversion is provided by XE.com.

Operating leases

The costs of operating leases are charged to the statement of financial activities on a straight-line basis over the life of the lease.

Debtors

Debtors are recognised at the settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

Creditors and provisions

Creditors and provisions 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. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Fund accounting

All of the charity’s and the group’s funds received to date have been unrestricted. The general fund comprises those monies that may be used towards meeting the charitable objective of the charity at the Trustees’ discretion.

The designated fund comprises monies set aside out of unrestricted general funds for specific future note 17. purposes or projects. The details of the specific designations made are detailed at

Taxation

The taxation status of the group and it’s subsidiaries are disclosed in note 18. The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax is provided using the liability method for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Principal Accounting Policies

(As of 31 December 2024)

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences, the carry forward of unused tax credits and unused tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.

Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Restatement of comparative balances

The comparatives have been reinstated regarding the charity investments. Further details are provided in Note 23.

50

51

Notes to the Financial Statements

(As of 31 December 2024)

1 Donation and legacies

1 Donation and legacies
2 Group
1 Jan 2024 to
31 Dec 2024
US$
Group
1 Jan 2023 to
31 Dec 2023
US$
Donations 37,742,689
59,627
37,742,689
59,627
Income from charitable activities
Income from charitable activities
Group
1 Jan 2024 to
31 Dec 2024
US$
Group
1 Jan 2023 to
31 Dec 2023
US$
Pharo school
Pharo laboratories
Other income		 2,437,386
917,332
125,762
91,551
147,601
148,201
2,710,749
1,157,084

3 Income from social enterprise trading

Income from social enterprise trading
Group
1 Jan 2024 to
31 Dec 2024
US$
Group
1 Jan 2023 to
31 Dec 2023
US$
Pharo Construction income 2,192,583
1,584,403
2,192,583
1,584,403
Income from investments Group
1 Jan 2024 to
31 Dec 2024
US$
Group
1 Jan 2023 to
31 Dec 2023
US$
Proft share from Pharo Management (UK) LLP
Bank interest		 7,804,603
22,008,124
1,654,868
999,999
9,459,471
23,008,123
Expenditure on Social Ventures Trading Group
1 Jan 2024 to
31 Dec 2024
US$
Group
1 Jan 2023 to
31 Dec 2023
US$
Costs of Sale Social Ventures Group of companies
Operational costs from the Social Ventures Group of companies
Governance costs		 2,349,811
2,091,722
2,761,761
1,241,153
108,971
84,577
5,220,543
3,417,452

4 Income from investments

5 Expenditure on Social Ventures Trading

52

Notes to the Financial Statements

(As of 31 December 2024)

6 Expenditure on charitable activities

6
Expenditure on charitable activities		 Expenditure on charitable activities Expenditure on charitable activities
Grants to institutions
Scholarship awarded
Mission driven programmes
Support costs of grant making and programme activities
Analysis of activities
Activities
undertaken directly
2024
US$
Grant funding
of activities
2024
US$		 Group
1 Jan 2024 to
31 Dec 2024
US$
Group
1 Jan 2023 to
31 Dec 2023
US$
Grants to institutions
Scholarship awarded
Mission driven programmes
Support costs of grant making and programme activities		 24,993
-
127,508
74,164
12,429,105
13,175,858
2,420,512
1,649,280
15,002,118
14,899,302
Activities
undertaken directly
2024
US$
Grant funding
of activities
2024
US$		 Support costs
2024
US$
Amount
2024
US$
Education Mission
Water Mission
Productivity Mission		 9,162,714
152,501
1,745,242
-
1,521,149
-		 1,792,107
11,107,323
335,758
2,081,001
292,646
1,813,795
12,429,106
152,501		 2,420,512
15,002,119
Analysis of activities Activities
undertaken directly
2023
US$
Grant funding
of activities
2023
US$		 Support costs
2023
US$
Amount
2023
US$
Education Mission
Water Mission
Productivity Mission		 8,472,451
74,164
3,121,050
-
1,582,357
-		 1,063,829
9,610,444
388,489
3,509,539
196,962
1,779,319
13,175,858
74,164		 1,649,280
14,899,302

Support costs have been allocated to each of the above activities based on the resources used during the year.

Analysis of support costs 1 Jan 2024 to
31 Dec 2024
US$
1 Jan 2023 to
31 Dec 2023
US$
Communications & IT
Finance costs
General management
Offce and premises
Staff costs
Governance costs		 72,126
108,277
4,834
743
231,664
202,917
122,532
68,368
1,848,078
1,117,856
141,278
151,119
2,420,512
1,649,280

53

Notes to the Financial Statements

(As of 31 December 2024)

Net movement in funds
This is stated after charging: Group Group
1 Jan 2024 to 1 Jan 2023 to
31 Dec 2024 31 Dec 2023
US$ US$
Staff costs (Note 8) 8,677,740 7,553,353
Parent company auditor’s remuneration
- statutory audit services 72,225 69,794
- other services 3,598 5,047
Other companies auditor’s remuneration
- statutory audit services 55,029 41,291
- other services 14,108 31,578
Depreciation 1,154,008 961,124
Loss on disposal of fxed assets - 3,467
Operating lease rentals 526,272 477,862

8 Staff costs and trustees' remuneration

Staff costs and trustees' remuneration
Group
1 Jan 2024 to
31 Dec 2024
US$
Group
1 Jan 2023 to
31 Dec 2023
US$
Employees
- wages and salaries
- social security costs
- employer pension contributions		 8,183,295
7,125,259
141,717
118,557
352,728
309,537
8,677,740
7,553,353

The average number of employees during the period totalled 702 (2023: 557). This is analysed as follows:

Group
1 Jan 2024 to
31 Dec 2024
No.
Group
1 Jan 2023 to
31 Dec 2023
No.
Number of support staff
Number of programme staff
Number of social ventures staff		 16
12
621
481
66
63
702
556

54

Notes to the Financial Statements

(As of 31 December 2024)

(As of 31 December 2024)
Group
1 Jan 2024 to
31 Dec 2024
No.
Group
1 Jan 2023 to
31 Dec 2023
No.
Employees with emoluments between £60,001 to £70,000 per annum
Employees with emoluments between £70,001 to £80,000 per annum
Employees with emoluments between £80,001 to £90,000 per annum
Employees with emoluments between £90,001 to £100,000 per annum
Employees with emoluments between £100,001 to £110,000 per annum
Employees with emoluments between £110,001 to £120,000 per annum
Employees with emoluments between £120,001 to £130,000 per annum
Employees with emoluments between £130,001 to £140,000 per annum
Employees with emoluments between £140,001 to £150,000 per annum
Employees with emoluments between £150,001 to £160,000 per annum
Employees with emoluments between £160,001 to £170,000 per annum
Employees with emoluments between £170,001 to £180,000 per annum
Employees with emoluments between £240,001 to £250,000 per annum		 3
3
3
5
2
3
3
2
2
1
-
-
1
-
1
1
-
1
-
1
2
1
2
-
-
1
19
19

The key management personnel of the Group comprise the Trustees of the Pharo Foundation, the CEO of the Foundation, and the Executive Team. The Executive Team, which reports directly to the CEO, includes the Chief Financial Officer, Chief Operating Officer and Chief Research and Evaluation Officer.

The total remuneration of key management personnel in 2024 was US$ 706,145 (2023: US$ 972,955). The reduction is primarily due to there being no Chief Executive Officer in post during the year and Guillaume Fonkenell in his Interim CEO capacity received no remuneration during the year. A new CEO was appointed in late 2024 and formally commenced in January 2025.

No Trustees received any remuneration or reimbursement of expenses in their capacity as trustees. However, the Foundation catered the Trustees’ travel expenses in connection with their duties as Trustees during the year, amounting to $ 8,336 (2023: nil)

55

Notes to the Financial Statements

(As of 31 December 2024)

9. Tangible assets

Group Furniture &
fttings
US$
Plant
& Machinery
US$
IT
equipment
US$
Motor
Vehicles
US$
Building
US$
Land
US$
Work in
progress
US$
Total
US$
Cost
At 1 January 2024
Additions
Transfers
Disposals
Reclassifcation
FX on exchange rate
At 31 December 2024
Depreciation
At 1 January 2024
Charge for the period
Disposals
Reclassifcation
FX on exchange rate
At 31 December 2024
Net book value
At 31 December 2024
At 31 December 2023		 780,357
736,574
343,365
2,160,671
4,360,977
1,605,033
3,342,557
13,329,534
247,705
70,554
168,651
7,343
102,666
105,470
3,619,979
4,322,368
-
28,527
-
-
1,042,342
-
(1,070,869)
-
(11,205)
(2,588)
(1,230)
-
-
(73,839)
-
(88,862)
-
-
(6,922)
-
-
-
-
(6,922)
(191,173)
(64,236)
(98,293)
(302,968)
(1,309,153)
163,595
(2,790,654)
(4,592,882)
825,684
768,831
405,571
1,865,046
4,196,832
1,800,259
3,101,013
12,963,236
407,139
225,645
200,744
930,935
372,731
5,630
-
2,142,824
220,248
150,026
110,577
426,826
221,083
25,248
-
1,154,008
(16,231)
(3,235)
(1,572)
-
-
-
-
(21,038)
-
-
(6,922)
-
-
-
-
(6,922)
(138,057)
(26,554)
(62,826)
(199,031)
(202,369)
(547)
-
(629,384)
473,099
345,882
240,001
1,158,730
391,445
30,331
-
2,639,488
352,585
422,949
165,570
706,316
3,805,387
1,769,928
3,101,013
10,323,748
373,218
510,929
142,621
1,229,736
3,988,246
1,599,403
3,342,557
11,186,710

56

Notes to the Financial Statements

(As of 31 December 2024)

Tangible assets

Foundation Furniture &
fttings
US$
Plant
& Machinery
US$
IT
equipment
US$
Motor
Vehicles
US$
Building
US$
Land
US$
Work in
progress
US$
Total
US$
Cost
At 1 January 2024
Additions
Transfers
Disposals
Reclassifcation
FX on exchange rate
At 31 December 2024
Depreciation
At 1 January 2024
Charge for the period
Reclassifcation
FX on exchange rate
At 31 December 2024
Net book value
At 31 December 2024
At 31 December 2023		 622,783
116,275
312,916
968,235
4,230,538
1,327,990
852,522
8,431,259
234,657
-
148,234
7,343
102,666
105,470
1,350,943
1,949,313
-
-
-
-
1,042,342
-
(1,042,342)
-
-
-
-
-
-
(73,839)
-
(73,839)
-
-
(6,922)
-
-
-
-
(6,922)
(164,839)
(64,236)
(91,595)
(184,866)
(1,309,152)
240,680
(479,066)
(2,053,074)
692,602
52,040
362,634
790,711
4,066,394
1,600,301
682,057
8,246,737
304,315
36,820
180,511
499,134
362,843
3,159
-
1,386,782
181,456
17,915
99,155
198,156
215,904
23,904
-
736,490
-
-
(6,922)
-
-
-
-
(6,922)
(128,806)
(27,848)
(59,496)
(163,323)
(203,713)
1,382
-
(581,804)
356,965
26,887
213,248
533,967
375,034
28,445
-
1,534,546
335,637
25,153
149,386
256,744
3,691,360
1,571,856
682,057
6,712,191
318,468
79,455
132,405
469,101
3,867,695
1,324,831
852,522
7,044,477

The transfers mainly relate to work in progress that was transferred to the building asset category during the year.

57

Notes to the Financial Statements

(As of 31 December 2024)

10. Intangible Assets

Group & Foundation Goodwill
US$
Software
US$
Website
US$
Work
in progress
US$
Total
US$
Cost
At 1 January 2024
Additions
FX on exchange rate
At 31 December 2024
Depreciation
At 1 January 2024
Charge for the period
FX on exchange rate
At 31 December 2024
Net book value
At 31 December 2024
At 31 December 2023		 804,733
6,922
-
-
811,655
-
-
89,547
197,106
286,653
169,504
(3,824)
-
-
165,680
974,237
3,098
89,547
197,106
1,263,988
13,412
6,922
-
-
20,334
94,590
-
12,196
-
106,786
5,659
(3,824)
-
-
1,835
113,661
3,098
12,196
-
128,955
860,576
-
77,351
197,106
1,135,033
791,321
-
-
-
791,321

The Foundation acquired Tender Care Junior Academy (TCJA) in Nairobi, Kenya. The acquisition included paying an amount exceeding the fair value of the assets, resulting in the recognition of goodwill. The amortisation expense has been charged under other operating expense in the statement of profit or loss.

58 Analysis of historical costs

Notes to the Financial Statements

(As of 31 December 2024)

11. Investments

Group
2024
US$
Group
2023
US$
Foundation
2024
US$
Restated
Foundation
2023
US$
Unlisted investments
Investment in subsidiary company		 1,804,766
1,804,766
1,803,221
1,803,221
-
-
14,384,297
10,325,384
1,804,766
1,804,766
16,187,518
12,128,605

Analysis of movement in investments

Group
2024
US$
Group
2023
US$
Foundation
2024
US$
Restated
Foundation
2023
US$
Value at 01 January 2024
Additions
Value at 31 December 2024		 1,804,766
1,804,766
12,128,603
8,651,551
-
-
4,058,913
3,477,052
1,804,766
1,804,766
16,187,516
12,128,603
Group
2024
US$
Group
2023
US$
Foundation
2024
US$
Foundation
2023
US$
Unlisted investments
Investment in subsidiary company		 5,151,542
5,151,542
5,151,542
5,151,542
-
-
15,854,345
11,795,430
5,151,542
5,151,542
21,005,888
16,946,972

Unlisted Investments

Investment by the Group represents its investment in Pharo Management (UK) LLP, Lynk and New Forests Company Holdings Limited. The basis of their valuations are detailed on page 46.

Subsidiary undertakings

At the year end, the Group included subsidiary entities controlled either directly by Pharo Foundation UK or through related structures. These have been consolidated in the Group financial statements.

Notes to the Financial Statements

(As of 31 December 2024)

----- Start of picture text -----
Name Parent Registration Registration Nature of business
undertaking status number
----- End of picture text -----

Name Parent
undertaking		 Registration
status		 Registration
number		 Nature of business
Pharo
Development
Investment Limited
(‘PDIL’)		 Pharo
Foundation -
100%		 Company
limited by shares
(England & Wales)		 Company number
7775576		 PDIL’s principal activity is to
receive proft distributions from
Pharo Management (UK) LLP
and make charitable donations
to Pharo Foundation.
Pharo Enterprises
Limited (‘PEL’)		 Pharo
Foundation -
100%		 Company
limited by shares
(England & Wales)		 Company
number
12211206		 PEL is a holding company
whose principal activity is to
establish Social Enterprises in
East Africa.
Pharo Ventures
Somaliland Limited
(‘PVSL’)		 Pharo Ventures
Kenya Limited –
100%		 Company
limited by shares
(Somaliland)		 Company
number 18120		 The primary principle activity is
to serve as a holding company
for
social
enterprises
with
overall goal of creating jobs,
ensuring positive social impact
and generating profts for long-
term
sustainability
of
both
subsidiaries and the company
Pharo Construction
Somaliland LTD
(PCSL)		 Pharo Ventures
Somaliland
Limited – 99.9%		 Company
limited by shares
(Somaliland)		 Company
number 1281		 The principal activity of the
company was previously the
provision
of
construction
services, including building and
infrastructure works. Following
the closure of the construction
business unit at the end of 2024,
the company’s principal activity
is now focused on the hire of
construction equipment and
the sale of ready-mix concrete.
Pharo Real Estate
Somaliland		 Pharo Ventures
Somaliland
Limited - 100%		 Company
limited by shares
(Somaliland)		 Company
number 1759		 The principal activity of the
company is the provision
of real estate services as an
income-generating entity of
Pharo Ventures Somaliland
Limited.
The
company
remained dormant during
theyear.
Pharo Farm LTD
Somaliland (PFSL)		 Pharo
Ventures
Somaliland
Limited - 100%		 Company
limited
by shares
(Somaliland)		 Company
number 1758		 The principal activity of the
company is to operate as an
income-generating farm under
Pharo
Ventures
Somaliland
Limited. The company remained
dormant during the year.
Pharo Integrated
Agriculture &
Manufacturing PLC
Ethiopia (PVET)		 Pharo Ventures
Kenya Limited -
99.9%		 Company
limited by shares
(Ethiopia)		 Registered
number
0073029357		 The principle activity is engaging
in manufacturing of edible oil,
farming and agro-processing
of oil seeds, wholesale of own
products with the objective of
generating profts.

59

Notes to the Financial Statements

(As of 31 December 2024)

----- Start of picture text -----
Name Parent Registration Registration Nature of business
undertaking status number
----- End of picture text -----

Name Parent
undertaking		 Registration
status		 Registration
number		 Nature of business
Pharo Foundation
Farm (‘FARM’)		 Pharo
Foundation -
100%		 Company
limited by shares
(Ethiopia)		 Registered
number
MT/
AA10/
00 50443/20 11		 The principal activity of the
company is to operate as an
income-generating farm within
Pharo
Foundation’s
Ethiopia
programme.
The
company
remained dormant during the
year.
Pharo Ventures
Kenya Limited
(‘PVKL’)		 Pharo
Enterprises
Limited - 100%		 Company limited
by shares (Kenya)		 Company
number PVT-
EYU97BY		 The principal activity of the
company is to build and
grow,
commercially
and
environmentally sustainable
businesses,
with
a
focus
on maximising creation of
economic value and jobs, for
the local communities.
Pharo Ventures
Rwanda Ltd
(‘PVRWL’)		 Pharo Ventures
Kenya Limited -
100%		 Company
limited by shares
(Rwanda)		 Registered
number 112174801		 The principal activity is to
develop sustainable businesses
that create economic value and
jobs. The company remained
dormant during the year.

60

61

Notes to the Financial Statements

(As of 31 December 2024)

A summary of the results of the above subsidiaries for the year ended 31 December 2024 is as follows:

2024
PDIL
$
2024
PEL
$
2024
PVSL
$
2024
PCL
$
2024
RESL
$
2024
FARM SL
$
2024
PIAM ET
$
2024
FARM ET
$
2024
PVKL
$
2024
PVRWL
$
Income
Administrative
expenditure		 7,804,603
-
-
2,193,917
-
-
-
-
3,625
-
(3,351)
(3,351)
(637,727)
(3,161,100)
-
(286,148)
(677,308)
-
(454,909)
-
Operating
surplus (defcit)
Distributions
under gift aid		 7,801,252
(3,351)
(637,727)
(967,183)
-
(286,148)
(677,308)
-
(451,284)
-
(7,801,603)
-
-
-
-
-
-
-
-
-
Net result
Other gains
(losses)
Taxation		 (351)
(3,351)
(637,727)
(967,183)
-
(286,148)
(677,308)
-
(451,284)
-
(6)
(43)
(6)
(3)
-
-
33,980
-
(55,806)
-
-
-
-
-
-
-
-
-
Net surplus /
(defcit)
Retained funds
at 1 January
2024
FX on exchange
rate		 (357)
(3,394)
(637,733)
(967,186)
-
(286,148)
(643,328)
-
(507,090)
-
839
(10,084)
(893,372)
(1,678,201)
-
-
(699,537)
(1,045,897)
1,306,392
-
(1)
-
-
-
-
-
613,921
49,741
(1,286,997)
-
Retained funds
at 31 December
2024		 480
(13,478)
(1,531,105)
(2,645,387)
-
(286,148)
(728,944)
(996,156)
(487,695)
-
Called up share
capital At 31
December 2024
Funds		 2
14,384,295
6,040,039
4,497,334
1,000
1,000
3,342,361
996,156
14,491,842
1,000
482
14,370,817
4,508,934
1,851,947
1,000
(285,148)
2,613,417
-
14,004,147
1,000
Assets
Liabilities
Funds		 3,703
14,374,038
4,600,445
1,899,985
1,000
1,000
3,160,967
-
14,024,695
1,000
(3,221)
(3,221)
(91,511)
(48,038)
-
(286,148)
(547,550)
-
(20,548)
-
482
14,370,817
4,508,934
1,851,947
1,000
(285,148)
2,613,417
-
14,004,147
1,000

62

Notes to the Financial Statements

(As of 31 December 2024)

A summary of the results of the above subsidiaries for the year ended 31 December 2023 is as follows:

2023
PDIL
$
2023
PEL
$
2023
PVSL
$
2023
PCL
$
2023
RESL
$
2023
FARM
SL
$
2023
PIAM ET
$
2023
FARM ET
$
2023
PVKL
$
2023
PV
RWL
$
Income
Administrative
expenditure		 22,008,124
-
-
1,986,946
-
-
-
-
260,772
-
(3,000)
(3,001)
(433,334)
(2,374,853)
-
-
(394,780)
-
(211,484)
-
Operating
surplus (defcit)
Distributions
under gift aid		 22,005,124
(3,001)
(433,334)
(387,907)
-
-
(394,780)
-
49,288
-
(22,005,124)
-
-
-
-
-
-
-
-
-
Net result
Other gains
(losses)
Taxation		 -
(3,001)
(433,334)
(387,907)
-
-
(394,780)
-
49,288
-
18
127
-
-
-
-
(55,367)
-
1,260,593
-
-
-
-
-
-
(17,224)
-
Net surplus /
(defcit)
Retained funds
at 1 January 2023
FX on exchange
rate		 18
(2,874)
(433,334)
(387,907)
-
-
(450,147)
-
1,292,656
-
821
(7,209)
(459,418)
(885,042)
-
-
(357,850)
(1,193,219)
461,733
-
-
-
-
-
-
-
-
147,322
-
-
Retained funds
at 31 December
2023
Called up share
capital At 31
December 2023		 839
(10,083)
(892,752)
(1,272,949)
-
-
(807,996)
(1,045,897)
1,754,390
-
2
10,325,380
4,126,920
3,223,100
1,000
1,000
2,379,036
1,045,897
10,630,950
1,000
Assets
Liabilities
Funds		 3,820
10,318,276
3,265,036
2,056,576
1,000
1,000
1,750,620
-
12,417,467
1,000
(2,979)
(2,979)
(30,868)
(106,425)
-
-
(179,580)
-
(32,127)
-
841
10,315,297
3,234,168
1,950,151
1,000
1,000
1,571,040
-
12,385,340
1,000

Charitable Entities

The charity operates through a combination of branches, charitable companies limited by guarantee, and a limited liability partnership, depending on local legal and regulatory requirements. These entities are treated as part of the charity and are fully consolidated within the Foundation’s financial statements.

Notes to the Financial Statements

(As of 31 December 2024)

----- Start of picture text -----
Name Parent Registration Registration Nature of business
undertaking status number
----- End of picture text -----

Name Parent
undertaking		 Registration
status		 Registration
number		 Nature of business
Pharo Foundation
Kenya (PDKE)		 Pharo
Foundation -
100%		 Company limited
by guarantee
(Kenya)		 Registered
number 1951954.1		 PFKE is a non-proft making
entity whose principal activity
is to carry out related charitable
programs within the country.
Pharo Schools LLP Pharo
Foundation
Kenya – 99%
and Pharo
Ventures Kenya
Limited - 1%		 Limited Liability
Partnership
(Kenya)		 Registered
number LLP-
7R15DJ7		 The principal activities of
the partnership are those
of provision of educational
services.
Pharo Foundation
Rwanda Ltd (PDRW)		 Pharo
Foundation -
100%		 Company limited
by guarantee
(Rwanda)		 Registered
number
112266894		 PFRW is a non-proft making
entity
whose
principal
activity is to carry out related
charitable programs within
the country.
Pharo Foundation
Somaliland (PDSL)		 Pharo
Foundation -
100%		 Branch of Pharo
Foundation UK		 Registered
number
L.43.31.2085		 PDSL is a non-proft making
entity
whose
principal
activity is to carry out related
charitable programs within
the country.
Pharo Foundation
Ethiopia (PDET)		 Pharo
Foundation -
100%		 Branch of Pharo
Foundation UK		 Certifcate No.
3717		 PDET is a non-proft making
entity
whose
principal
activity is to carry out related
charitable programs within
the country.

63

12 Debtors due after one year

Group Group Foundation Foundation
2024 2023 2024 2023
US$ US$ US$ US$
Scholarship awarded loans 205,504 81,074 205,504 81,074
205,504 81,074 205,504 81,074

64

Notes to the Financial Statements

(As of 31 December 2024)

13 Inventory

Group
2024
US$
Group
2023
US$
Foundation
2024
US$
Foundation
2023
US$
Inventory - Medical
Inventory - Fuel
Inventory - RMC
Inventory - School Materials		 24,494
69,206
24,494
69,206
10,993
20,182
10,993
20,182
32,246
15,713
-
-
9,145
-
9,145
-
76,878
105,101
44,632
89,388

Inventory consists of medical supplies that are used at the Pharo Diagnostic Centre, a depot of fuel stored mainly due to shortage of fuel in the country and construction materials at hand from Pharo Construction Limited. No inventory was carried forward from the prior year. Medical supplies are valued at FIFO method, fuel reported at its costs whereas construction materials valued by construction engineer at year end.

14 Debtors

Group
2024
US$
Group
2023
US$
Foundation
2024
US$
Foundation
2023
US$
Accounts receivable
Prepayments
Accrued Income
Sundry debtors
Deferred tax asset
Amounts due from subsidiary undertaking		 604,352
185,573
69,465
32,128
476,564
881,214
326,349
749,978
3,170,262
322,462
3,125,000
90,168
121,250
71,905
86,970
66,238
304,593
325,998
-
-
-
-
18,628
1,391
4,677,021
1,787,152
3,626,412
939,903

Sundry debtors include rent deposits of US$ 68,149 (2022 – US$ 57,117). The rent deposit is subject to a charge against all sums due and all Pharo Foundation’s obligations under property leases.

65

Notes to the Financial Statements

(As of 31 December 2024)

15 Creditors: amounts falling due within one year

Group
2024
US$
Group
2023
US$
Foundation
2024
US$
Foundation
2023
US$
Accruals
Provision for severance indemnities
Deferred income
Corporation tax payable
Social security and other taxes
Trade and other payables
Borrowings		 553,509
884,703
428,095
820,003
746,985
672,045
624,491
567,974
181,764
364,771
103,950
40,498
(6,310)
(2,017)
-
-
162,052
166,392
141,634
157,315
428,019
340,912
282,035
250,783
107,547
-
-
-
2,173,566
2,426,806
1,580,205
1,836,573

The liability for provision for severance indemnities relates to mandatory staff benefit schemes required under local labour laws in countries where the group operates outside the UK. The amount is recognised within creditors in the financial statements.

Analysis of movement for long term service entitlements

Group
2024
US$
Group
2023
US$
Foundation
2024
US$
Foundation
2023
US$
Value at 01 January 2024
Less: Amounts paid
Add: Benefts accured
FX on exchange rate
Value at 31 December 2024		 672,045
451,345
567,974
419,636
(169,291)
(94,708)
(128,144)
(84,942)
338,102
320,345
252,569
238,217
(93,871)
(4,937)
(67,908)
(4,937)
746,985
672,045
624,491
567,974

Analysis of movement for deferred income

Group
2024
US$
Group
2023
US$
Foundation
2024
US$
Foundation
2023
US$
Value at 01 January 2024
Less: Amounts released to income in the year
Add: Amounts deferred in the year
FX on exchange rate
Value at 31 December 2024		 364,771
296,541
40,498
18,265
(1,902,279)
(476,371)
(1,466,505)
(88,853)
1,713,625
544,623
1,524,310
111,107
5,647
(22)
5,647
(21)
181,764
364,771
103,950
40,498

Deferred income relates to grants received in advance to fund programme activities and operational costs that are expected to be incurred in future periods. It is recognised as a liability and released to income as the related expenditure is incurred. The deferred income brought forward from the prior year was fully utilised during the reporting period. The remaining balance at year end will be utilised in future periods.

66

Notes to the Financial Statements

(As of 31 December 2024)

16 Creditors due after one year

Group
2024
US$
Group
2023
US$
Foundation
2024
US$
Foundation
2023
US$
Bank Loan 172,252
-
-
-
172,252
-
-
-

Pharo Integrated Agriculture & Manufacturing PLC secured a term loan facility from Dashen Bank S.C. totalling ETB 170,000,000 (equivalent US$ 1,350,757), with interest at 8% per annum. The first disbursement of ETB 35,000,000 (equivalent US$ 278,100) was received on 4 December 2024. Repayments are due in semi-annual instalments starting from 30 June 2025. The loan will be secured by merchandise, vehicles, buildings, factory machinery, equipment and generator.

As at 31 December 2024, the loan balance was ETB 35,214,207 (equivalent USD 279,799), comprising:

17 Designated funds

Group At 1 Jan
2024
US$
Net new
commitments/
Investment
US$
Granted/
(Reclassifed/
Impaired/
Utilised)
US$
At 31 Dec
2024
US$
Grants Payable
Financial Commitments
Committed Funds for Future Programmes
Operational Reserve
Impact Investments
Investments
Tangible & Intangible Assets		 -
101,340
(24,993)
76,347
-
5,526,907
(2,667,282)
2,859,625
-
16,985,451
-
16,985,451
-
15,000,000
-
15,000,000
1,803,222
-
-
1,803,222
1,544
-
-
1,544
11,186,708
884,278
(612,207)
11,458,779
12,991,474
38,497,975
(3,304,482)
48,184,968
Foundation At 1 Jan
2024
US$
Net new
commitments/
Investment
US$
Granted/
(Reclassifed/
Impaired/
Utilised)
US$
At 31 Dec
2024
US$
Grants Payable
Financial Commitments
Committed Funds for Future Programmes
Operational Reserve
Impact Investments
Subsidiary Investments
Tangible & Intangible Assets		 -
101,340
(24,993)
76,347
-
2,185,178
-
2,185,178
-
16,985,451
-
16,985,451
-
15,000,000
-
15,000,000
1,803,223
-
-
1,803,223
10,325,381
4,058,913
-
14,384,294
7,044,491
1,059,132
(256,385)
7,847,238
19,173,095
39,390,013
(281,378)
58,281,731

67

Notes to the Financial Statements

(As of 31 December 2024)

The income funds of the Group and the Foundation include the following designated funds, which have been set aside from unrestricted general funds by the Trustees:

As at 31 December 2024, designated funds totalled US$ 48.18 million (2023: US$ 12.99 million), with the majority of the increase related to future programme commitments plus operational reserves.

18 Taxation

Pharo Foundation is a registered charity and, therefore, is not liable for income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities. The Foundation’s UK subsidiaries gift aids all profits (where applicable) to Pharo Foundation and hence no tax is payable by them.

The charitable Foundation’s branches and subsidiaries registered in Ethiopia, Kenya, Rwanda and Somaliland are non-profit making, non-government organisations. Under the respective local laws and regulations, these overseas operations are exempt from income tax.

Pharo Ventures Kenya Limited is an overseas subsidiary resident in Kenya for taxation purposes. The statutory tax rate applicable for the year 2024 was 30% as per the Tax Laws (Amendment) Act 2020. As a result, the tax credit for the year was US$ 2,178 (2023 US$ 17,224).

Pharo Ventures Somaliland is a subsidiary of Pharo Ventures Kenya Limited and Pharo Construction Limited is a subsidiary of Pharo Ventures Somaliland and are regulated under the Tax Laws of Somaliland. The statutory tax rate applicable is 12.3% of business profit. No tax charge was reported during the year, as both companies reported losses.

Pharo Integrated Agriculture & Manufacturing PLC is a subsidiary of Pharo Ventures Kenya Limited and is subject to the tax laws of Ethiopia. The applicable statutory income tax rate is 30%, in accordance with Proclamation No. 979/2016. No current tax charge was recognised during the year as the company reported a loss. However, a deferred tax asset has been recognised and is included under debtors in the statement of financial position. This asset reflects tax losses carried forward, which are expected to be utilised against future taxable profits.

Notes to the Financial Statements

(As of 31 December 2024)

19 Related party transactions

Pharo Foundation is funded in part by a share of profits generated by Pharo Management (UK) LLP, from which it received US$ 7.1 million in 2024 (2023: US$ 22 million). Mr Guillaume Fonkenell, a Trustee of the Foundation, is a Managing Member of Pharo Management (UK) LLP. In addition to this, Mr Fonkenell made a direct personal donation of US$ 30 million to the Foundation during the year.

A trustee, Ms. Farah Jirdeh Fonkenell, entered into a land lease agreement with Pharo Foundation Somaliland, granting a 99-year lease term starting 1 July 2023, at an annual rent of US$ 1.

20 Analysis of net assets between funds

68

Group General
funds
2024
US$
Designated
funds
2024
US$
Total
2024
US$
Tangible fxed assets
Intangible assets
Investments
Net current assets		 -
10,323,748
10,323,748
-
1,135,033
1,135,033
-
1,804,766
1,804,766
17,035,708
34,921,421
51,957,129
17,035,708
48,184,968
65,220,676
Foundation General
funds
2024
US$
Designated
funds
2024
US$
Total
2024
US$
Tangible fxed assets
Intangible assets
Investments
Net current assets		 -
6,712,191
6,712,191
-
1,135,033
1,135,033
-
16,187,518
16,187,518
16,826,732
34,246,989
51,073,721
16,826,732
58,281,731
75,108,463
Group General
funds
2023
US$
Designated
funds
2023
US$
Total
2023
US$
Tangible fxed assets
Intangible assets
Investments
Net current assets		 -
11,186,710
11,186,710
791,321
-
791,321
-
1,804,766
1,804,766
23,944,493
(2)
23,944,491
24,735,814
12,991,474
37,727,288
Foundation General
funds
2023
US$
Designated
funds
2023
US$
Total
2023
US$
Tangible fxed assets
Intangible assets
Investments
Net current assets		 -
7,044,477
7,044,477
791,321
-
791,321
-
12,128,606
12,128,606
21,770,664
13
21,770,677
22,561,985
19,173,096
41,735,081

69

Notes to the Financial Statements

(As of 31 December 2024)

21 Financial commitments

At 31 December 2024, Pharo Foundation had the following future minimum commitments under noncancellable financial obligations as below:

Group
2024
US$
Group
2023
US$
Foundation
2024
US$
Foundation
2023
US$
Land & Buildings: minimum operating lease commitments
- Less than one year
- Between two to fve years
Scholarships Awarded:
- Less than one year
- Between two to fve years
Constuction Plant & Machinery Commitments:
- Less than one year
System Deployment - WIP
- Less than one year		 435,219
373,011
379,432
314,237
1,059,362
639,020
854,707
545,864
1,494,582
1,012,032
1,234,139
860,102
205,890
175,505
205,890
175,505
617,669
456,800
617,669
456,800
823,559
632,305
823,559
632,305
414,004
3,081,286
-
414,004
3,081,286
-
-
127,480
-
127,480
-
2,859,625
4,725,623
2,185,178
1,492,407

22 Assessment of Hyperinflationary Status of Ethiopian Operations

The Group has evaluated the economic environment in Ethiopia to determine if it qualifies as hyperinflationary under FRS102. Based on available data, Ethiopia’s cumulative inflation over the past three years, when calculated on a compound basis, exceeds the 100% threshold. However, qualitative indicators do not conclusively support a hyperinflationary classification. Therefore, the Group has not applied hyperinflation accounting to its Ethiopian subsidiary. The Group will continue to monitor economic conditions in Ethiopia for any significant changes.

23 Post balance sheet event

Following the year-end, the charity made significant commitments to expand its operations in Somaliland. These include a new farming and social development programme in Wajale and the construction of a private international school in Hargeisa.

While these developments took place after 31 December 2024 and do not impact the reported financial position, they reflect the charity’s continued growth and strategic direction for the coming years.

Notes to the Financial Statements

(As of 31 December 2024)

24 Prior Year Adjustment – Foundation Only

A prior year adjustment has been made to restate the 2023 comparative figures in the Foundation’s balance sheet. This relates to an intercompany investment made by Pharo Foundation Kenya in Pharo Schools LLP, which was not eliminated during the consolidation process in the 2023 Foundation financial statements.

As a result of this adjustment:

The effect of the adjustment is presented in the Consolidated Statement of Financial Position (extract) below. This adjustment affects only the Foundation’s individual financial statements and has no impact on the Group consolidated accounts or the overall net asset position.

70

Reported
Foundation
as at 31/12/2023
US$
Adjustment
Foundation
US$
As restated
Actual
Foundation
as at 31/12/2023
US$
Investments
Total net assets
Net assets attributable to Group
Funds of the charity:
Unrestricted Funds
- General funds
- Designated funds		 15,696,815
(3,568,210)
12,128,605
23,613,687
(3,568,210)
20,045,477
45,303,290
(3,568,210)
41,735,080
45,303,290
(3,568,210)
41,735,080
22,561,985
-
22,561,985
22,741,305
(3,568,210)
19,173,095
45,303,290
(3,568,210)
41,735,080