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← Animal Free Research UK

2024-03-31-accounts

Company no. 08015625 Charity no. (England & Wales) 1146896 Charity no. (Scotland) SC045327

Animal Free Research UK Ltd Report and Audited Financial Statements 31 March 2024

Animal Free Research UK Ltd

Reference and administrative details

For the year ended 31 March 2024

Company number 08015625
Charity number 1146896 and SC045327
Registered office and 27 Old Gloucester Street
operational address London
WC1N 3AX
Trustees Trustees, who are also directors under company law, who served during
the year and up to the date of this report were as follows:
M Ashby
J Borham appointed 9 March 2024
D Cameron
M Chan
S Honess resigned 9 March 2024
J Jones resigned 19 February 2024
G Pilkington (Chair)
K Postlewhite resigned 3 May 2024
L Sheridan resigned 13 May 2023
J Wilkinson appointed 10 November 2023
Chief executive officer Carla Owen
Bankers Ecology Building Society Yorkshire Bank
7 Belton Road 2-4 George Street
Silsden Luton
Keighley Bedfordshire
West Yorkshire LU1 2AN
BD20 0EE
Cambridge & Counties Bank Limited Virgin Money Plc
Charnwood Court Jubilee House
5B New Walk Gosforth
Leicester Newcastle upon Tyne
LE1 6TE NE3 4PL
Manchester Building Society
125 Portland Street
Manchester
M1 4QD
Solicitors Withers LLP Anthony Collins Solicitors
16 Old Bailey 76 King Street
City of London Manchester
Greater London M2 4NH
EC4M 7EG

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Animal Free Research UK Ltd

Reference and administrative details

For the year ended 31 March 2024

Investment consultant Ethical Investors 3rd Floor, Formal house 60 St George's Place Cheltenham GL50 3PN Legacy consultant Brian James Kettering Employment advisors Your People Ltd Arune House 2 Kings Road Haslemere Surrey GU27 2QA Auditors Godfrey Wilson Limited Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

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Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2024

The Trustees present their annual and strategic report together with the financial statements for the year ended 31 March 2024.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, the Companies Act 2006, “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)” and Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended).

About Animal Free Research UK

Animal Free Research UK funds pioneering animal free research that saves humans and animals and is forging a future where animals are replaced with modern, human-specific techniques. The scientists we fund are pushing the latest animal-free technological and research boundaries towards better treatments for major diseases like cancer, heart disease and dementia.

We engage with policy makers, the scientific community, pharma and the public to accelerate the use of ethical, pioneering lab technologies that save lives, money and time, and we champion regulatory change to accelerate the transition from animal-based research to human-specific technologies.

Together we are creating powerful change and making Britain an inspiring world leader in ethical research that will find better treatments for diseases faster and save the lives of more humans and animals.

Founded in 1970 and funded by charitable donations from individuals, schools, trusts and foundations and corporations, we have given over £11 million in grants to fund pioneering human relevant research projects into diseases including Covid-19, cancer, brain tumours, diabetes and dementia, and our work has saved the lives of countless animals whilst advancing human-specific medical research.

Vision

Our vision is a world where animals and humans lead healthy, happy lives, free from suffering.

Purpose

Our purpose is to support scientists to transition from animal-based to human-specific medical research.

Mission

Our mission is to champion animal-free, human-specific technologies that deliver better treatments for human diseases faster.

Values

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Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2024

Objectives and activities

Our objects are “the prevention of the suffering of animals and the advancement of human health, in particular but not exclusively by the promotion and funding of human-relevant replacements to the use of animals in scientific and medical experimentation”.

Our strategic goal is to transform medical research and regulation so there is a clear pathway to develop and deliver effective treatments for human diseases faster and without animals.

The long-term impact we seek is that research and development of treatments for human diseases are entirely animal free.

To create this impact, the activities the charity undertakes focus on the following two areas: ▪An increasing number of scientists are committed to human relevant research; and ▪Policy makers, industry and the academic community support animal free research.

To this end, the activities the charity undertakes focus on the following four areas:

1. Support researchers to develop, use and transition to new approach methodologies (NAMs)

2. Work with decision makers to bring about change that will benefit patients and boost economic growth, while improving animal protection We believe that animal-free research is best for both people and animals, and we understand that creating transformational change is complex and often only finally achieved through updates in policy, legislation and regulation. We work to influence UK government and politicians to act in the best interests of public concern for animals and human health by prioritising support for NAMs.

Fundraising

Animal Free Research UK is grateful to the thousands of people who have generously supported the charity’s work this year and helped to fund our activities. It is only because of the kindness of our supporters that we can continue our vital work.

We employ a range of fundraising approaches to raise money, including working with professional fundraisers, philanthropists, trusts and foundations and the many generous individuals who donate through our appeals and take part in fundraising events. Our development team help ensure that every individual supporter can have a meaningful relationship with Animal Free Research UK.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding the activities the charity undertakes.

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Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2024

Strategic report

Chair of Trustees Statement

I am delighted to report that, despite challenges from a difficult economic environment, we have remained steadfast in our mission to champion animal-free, human-specific technologies that deliver better treatments for human diseases faster.

This year, our funded researchers have made remarkable strides in advancing new approach methodologies (NAMs). From developing “mini-hearts” that replicate cardiac function to pioneering organ-on-a-chip systems, we are revolutionising how diseases like cancer, heart disease, and diabetes are studied. The creation of a human-specific testing framework for drug-induced liver injury (DILI) is a highlight, demonstrating how we are leading the way in shaping the future of biomedical research. Our newly launched animal-free antibodies database, currently in its beta phase, also exemplifies our commitment to replacing outdated animal-based practices with humane, cutting-edge technologies.

On the policy front, we have made significant progress with our campaign for a “Human-Specific Technologies Act”. This proposed legislation would set a clear framework for transitioning to humanspecific research, prioritising technologies that can replace animal use. With the support of 47 MPs, we are gaining momentum toward securing the legislative change necessary to establish Britain as a global leader in ethical research.

It is thanks to the generosity of our supporters we have been able to sustain our vital work. Our “Challenge for Change” campaign and World Animal Free Research Day helped raise awareness and funds and we are truly grateful for the support from our community.

Financially, we have managed to maintain stability in a challenging environment, achieving a surplus. This will enable us to continue our work and further our mission, even in the face of uncertainty.

Looking ahead, we have ambitious plans to expand our network, deepen our engagement with policymakers, and increase the public awareness of NAMs. With the continued support of our community, I am confident that we will accelerate the transition to a future where animals and humans lead healthy, happy lives, free from suffering.

Geoffrey J Pilkington

Geoffrey Pilkington

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Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2024

Achievements and performance

We would like to thank our funders, supporters and the biomedical research community for all your help in achieving the successes of the past year. Here are some of the highlights:

1. Support researchers to develop, use and transition to new approach methodologies (NAMs)

▪ Curate best practice in NAMs

Achieved: Drug-induced liver injury (DILI) often results from medicinal drugs, highlighting the need for better human-focused tools to predict side effects. In April, supported by the Alliance for Human Relevant Science, we gathered DILI experts and stakeholders at the Royal Society to create a collaborative community and framework to advance drug testing regulations and DILI prevention.

The European Centre for the Validation of Alternative Methods (ECVAM) has recommended a major phase out of animal-derived antibodies. Consequently, we have developed the infrastructure for an online database for animal free antibodies. The next step is to populate the database with data and launch the beta test phase. This tool will play a key role in driving awareness and accessibility that will help to drive down both development and purchase costs.

We also continue to maintain an online catalogue which contains NAMs companies who provide tools for human-based research, animal free biomaterial providers and other useful NAMsrelated tools and databases. The NAMs catalogue can be accessed through our Community of Practice.

▪ Facilitate collaboration and community

Achieved: During two days in Cambridge, we brought together the best in our field - veterans and early career scientists alike – to discuss our collective desire to “break down the barriers to the acceleration of NAMs adoption” at our annual science conference.

On day one we looked at recent innovations in animal free research and technology, with presentations from researchers who have developed innovative new approaches and models for liver, lung and musculoskeletal research. We also learned about the development of animal free biomaterials and technologies and saw just how far we can already go without the use of animals.

Day two opened with a keynote speech from this year’s winners of the Animal Free Research UK Pioneer Awards, including the winner of the Pioneer Medal for outstanding contribution, Dr Merel Ritskes-Hoitinga, Professor in Evidence-Based Transition to Animal-Free Innovations at Utrecht University. The conference was rounded off with examples of best practice from the Netherlands and supporting the next generation of researchers to have a career in human-focused research.

The Community of Practice, a collaboration between Animal Free Research UK and the Alliance for Human Relevant Science, is an interactive network for members to raise awareness, deepen knowledge, drive creativity and spark passion for a science that benefits animals as well as humans. By the year end membership had grown to over 200 members.

As part of the Alliance Exchange online event series, Animal Free Research UK colleagues delivered two webinars which highlighted the current state of NAMs and provided a sneak preview of the charity’s soon-to-be-launched antibodies database.

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In partnership with AZAR Innovations, we delivered a hands-on training course designed to give cutting-edge insights and expert guidance for the use of organ-on-chip technologies. During the two-day intensive masterclass, attendees from academia and industry took part in group discussions and problem solving, specialised lectures and practical hands-on training using a variety of organ-on-chip designs.

“You combined your knowledge and experience with the passion and patience to make the course a wonderful learning experience. I am now even more motivated to dive into OoC, and talk to decision makers in academics so they embrace this technology in their universities to replace the animal testing with ethical, modern, human relevant alternatives.” – attendee feedback.

▪ Fund researchers to transition to NAMs

Achieved: An outline of the research projects that operated during the year follows:

Strategic grants

ARC 1.0 at Queen Mary University of London: Cancer research

Animal Free Research UK is co-funding Dr Adrian Biddle's three-year PhD project to model head and neck tumour-induced changes in surrounding cells, molecules, and blood vessels using a 3D in vitro system. The team uses mathematical modelling to identify key factors in tumour spread. The minimal 3D model is now largely optimised and the next step is to integrate lymphatic endothelial cells.

- ARC 2.0 at University of Exeter: Diabetes, aging, and COVID 19 detection and prediction

With £25,000 from Animal Free Research UK, Professor Lorna Harries’ team cultured human renal cells to study gene faults in diabetes and identified triggers for cell changes. They successfully humanized two cell types and are advancing toward a third, identifying high glucose or fat as triggers for damaging changes.

Thanks to our £180,000 award, a post-doctoral researcher is exploring how synthetic female hormones affect cell aging. Early experiments with human skin cells using animal-free growth methods show slower aging compared to animal-derived conditions. Investment in automated imaging will improve results and speed up research.

We also supported Professor Harries' VALID study, which developed an animal-free technique to measure viral load in Covid-19, revealing that a third of individuals remain infectious beyond 5 days. This research has significant public health implications and demonstrates that immunological studies can be conducted without animals.

lifETIME CDT at University of Glasgow, University of Birmingham, Aston University and CÚRAM – Science Foundation Ireland

Animal Free Research UK has partnered with the Engineered Tissues for Discovery, Industry and Medicine Centre for Doctoral Training (lifETIME CDT) to advance animal-free technologies for drug discovery and regenerative medicine. Supported PhD projects include developing a 3D bone marrow model for testing drugs for acute myeloid leukaemia and creating an animal-free ‘tunable’ hydrogel for cell growth. We will soon discuss additional funding to continue supporting this innovative, human-specific research programme.

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Post-doctoral awards

Skin cancer research at University of Bristol

We are funding a Daphne Jackson Trust Fellow at the University of Bristol with £102,532 over three years to research drug absorption in subcutaneous skin tissue. This project aims to create a groundbreaking model for drug development and testing. The researcher has developed a novel in-vitro model of human subcutaneous tissue and will now validate it by testing various drug formulations and comparing results to clinical data.

‘Mini-hearts’ and heart disease at University of Nottingham

Dr. Chris Denning’s team received £146,740 for a 3-year project using human induced pluripotent stem cells to create ‘tri-culture’ microtissues mimicking heart function, including contraction and arrhythmia, to replace animal models for studying cardiac fibrosis. So far research has shown that animal serum is unnecessary for developing heart cell types and that ‘mini-hearts’ can be made from stem cells. The next goal is to develop a cost-effective ‘miniheart’ model for studying cardiac fibrosis and predicting issues not covered by current animal models.

PhDs

Breast cancer research at University of Aberdeen

This four-year PhD project, funded by Animal Free Research UK (£18,000) and Medical Research Scotland, aims to develop animal-free models to predict cancer spread. So far, human serum has been successfully used to culture breast cancer cells, validated by growth and migration assays, replacing animal-derived fetal bovine serum (FBS).

Smart materials for drug detection at University of Hertfordshire

This £40,000 four-year PhD project aims to develop an animal-free assay for detecting opioids, which turns from liquid to gel for rapid overdose detection by paramedics or nurses, potentially saving lives. Computer-aided design has helped create new opioid sensors without animal materials, and experimental work has advanced the development of sensors with improved sensitivity and specificity.

- Developing a non invasive, animal free tool for monitoring treatment response in lung cancer at Maynooth University (previously) Trinity College Dublin

We have awarded £25,000 in match funding to investigate how extracellular vesicles could lead to drug resistance in non-small-cell lung cancer (NSCLC), the most common type of lung cancer. The research team has successfully thawed and cultured human lung adenocarcinoma cells which have been adapted to an animal free environment. They will now be able to begin their investigation into whether biomarkers are predictors of drug resistance.

Finding new drugs for patients with multiple brain tumours at Plymouth University

There are no drug treatments for Neurofibromatosis Type 2 (NF2), a hereditary disease causing multiple brain tumours. Our £84,370 grant funded research to explore if existing drugs could treat NF2. The study found that certain receptors on tumour macrophages can be targeted in meningioma and schwannoma, revealing a new approach for dual targeting of macrophages and tumour cells.

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Testing novel treatments for childhood lung infections at University College London

Our £85,219 grant supported research on RSV bronchiolitis, a severe lung infection affecting over 33 million infants annually, with no licensed vaccine or effective treatment. The researcher developed a 3D model of the infant lung to replicate RSV disease outcomes, enabling testing of new antiviral treatments for efficacy against viral load and inflammation.

Pilot study awards

The use of a novel nanomedicine for treatment of liver disease at University of Derby Dr Kermanizadeh and his team have developed a novel nanomedicine with a potent antiinflammatory mix to treat liver disease and created human cell liver models to study disease stages. They tested nanomedicines on these models and identified three promising candidates for further trials, for which additional funding is being sought.

Human cell model to study brain damage due to abnormal heart rhythm at Edge Hill University

Dr Patabendige is enhancing a human cell-based blood-brain barrier model. The system now uses ECGs from atrial fibrillation patients to study blood flow effects on the barrier and its link to brain damage. Additional funding is being sought to validate these findings and create a reliable, animal-free model.

NEW: ThermoPIGs: Imitation gelatins at University of Hertfordshire

Gelatin, made from collagen in cows and pigs, is widely used in research. Dr. Aspinall will develop a synthetic alternative, 'ThermoPIGS,' which mimics gelatin’s temperature response, potentially saving millions of animals.

- NEW: Uncovering genetic differences in age associated lung disease between the sexes at Hull University

Dr Nikitenko studies genetic changes in IPF by growing human lung blood vessel cells from patients using animal-free methods. He will compare these genes with those from healthy donors and investigate genetic differences by age and sex to understand varying disease development.

- Developing an animal free gut model to study gastrointestinal diseases at Kings College London

The human epithelial organoid's usefulness is limited as its luminal side cells are shielded. Dr Vllasaliu developed two intestinal wall models with exposed luminal sides, which are promising replacements for animal models. Once fully validated, these models could be used in areas like toxicology and drug absorption.

Scientists’ attitudes on science, values and animal free research at Kingston University Historically, animal research was the gold standard for safety but now, there’s a shift towards human-relevant research. Professor Peggs is interviewing 13 Animal Free Research UK-funded scientists to explore their motivations and experiences, aiming to inspire current and future researchers.

- NEW: Development of an animal free human liver model to study drug toxicity in fatty liver disease at University of Liverpool

Non-alcoholic fatty liver disease (NAFLD) affects 1 in 4 people in the UK. Professor Goldring has created a human cell-based liver model that mimics fat accumulation, aiming to link liver fat levels with the risk of drug-induced liver injury (DILI). This could lead to testing fatty liver status before deciding on drug treatments to reduce DILI risk.

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NEW: 3D-engineered human organoid to study muscle sarcopenia in chronic cardiorespiratory diseases at Northumbria University

Dr Simoes has developed a 3D muscle organoid which will better reflect the human muscle and, in this project, used it to generate preliminary data which has advanced our understanding of sarcopenia while also developing her own media for cell culture – a key component of producing a reliable animal free 3D model.

- NEW: Using innovative imaging of 3D engineered muscle to help develop new treatments for muscle wasting diseases at Northumbria University

Building on the above, Dr Simoes will use a technique called ChipCytometry in an attempt to pinpoint sarcopenia biomarkers in muscle tissue for the first time, which could help map how muscle growth is controlled.

Developing new treatments for sarcopenia patients at Nottingham Trent University

Dr Santos has developed a new “muscle-on-a-chip” technology to study sarcopenia which can produce 10 times more engineered muscle than currently available commercial techniques. This project will optimise the animal-free production of tissue engineered muscle then characterise its functional contraction.

NEW: Developing animal-free brain organoids to uncover more breakthroughs in Parkinson’s disease at Luxembourg University

Parkinson’s disease cannot be replicated in animals, as it is uniquely human. Professor Schwamborn is creating “mini-brains” from human stem cells, without animal-derived materials, to test Parkinson’s disease therapies and compare them to mini-brains grown with animalderived biomaterials.

Developing a human-relevant bone marrow on-a-chip to better understand rheumatoid arthritis and chronic inflammation at Queen Mary University of London

Professor Dalli is developing and validating an innovative organ-on-a-chip tool which comprises a plastic chip with fluid filled channels within which bone marrow cells can grow and interact in an environment that mimics human bone marrow. After validation, the model will be used to study the bone marrow niche and explore what molecules drive inflammation.

NEW: Growing human liver cells to improve drug safety testing at Queen Mary University of

London

Some drugs found safe in animal tests can cause liver injury in humans with serious side effects. Professor Linton is developing a method to grow liver cells from human stem cells that retain their characteristics. If successful, this could provide a limitless supply of human liver cells for drug testing, eliminating animal experiments and leading to safer, more effective drugs.

NEW: NANOSTACKS: liver-on-chip model for drug safety testing at Revivocell

Current liver models for drug-induced liver injury lack key cell types. Dr. Talari's NANOSTACKS™technology uses “LEGO-like” blocks with cells that can be stacked to mimic the human liver's complex cell mixture. This project aims to optimize animal-free cell production, saving time, money, and replacing animal use.

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Establishing a human ex vivo keratitis model at University of Sheffield

Dr Karunakaran established a human cornea model of a skin disease named ‘Pseudomonal keratitis’ which repurposes otherwise wasted human corneal tissue. This novel model is an alternative to the use of animals for testing the efficacy of antimicrobials against biofilm infections.

- Use of electromagnetic non harmful stimulation applied to cells in a dish to support muscle repair at University of Suffolk

Dr. Masieri is creating a cost-effective, human-relevant model to simulate muscle cell injury using human-induced pluripotent stem cells. She will study healing and test electromagnetic fields to speed up recovery. The project faced delays due to the unavailability of an animal-free substitute for foetal bovine serum. Preliminary data now suggests electromagnetic fields are safe for use in human muscle cell models, potentially aiding in treating muscle-related issues.

Other awards

Developing a blood clot-on-a-chip model to find new ways of treating heart attacks at University of Aberdeen

Blood clot formation and breakdown is normally tightly regulated but when this balance is disrupted blood clots can form that block the blood vessels and potentially lead to a heart attack. Our award is funding the development of a microfluidic model of blood clot formation and breakdown to better understand the mechanisms underpinning human stroke.

2 Support decision makers to implement policy change to benefit animals and human health

▪ Convince UK government & politicians to act in the interests of public concern for animals used in medical research and human health

In progress: At a May parliamentary reception, we launched our policy briefing, “How HumanSpecific Technologies Can Transform Lives and Supercharge the Economy.” MPs and Peers engaged with experts on human-specific technologies, such as organ-on-a-chip and 3D human skin models, and were invited to sign our pledge supporting Britain’s ethical innovation. To date, 47 MPs have signed the pledge. We are calling for a legislative framework, the “Human-Specific Technologies Act,” to advance technology that replaces animal use in research, secures medical breakthroughs, and fosters the UK life sciences sector.

On 4 July, Steve McCabe MP led a debate in Parliament on human-specific medical research techniques where he championed their benefits for public health, the NHS, and the UK economy. Steve and Martyn Day MP spoke in favour of a Human-Specific Technologies Act with timebound action plans and a duty for the Government to report to Parliament on progress. We are now preparing for the next phase of our campaign to produce a draft version of the Bill.

In the autumn we attended the Labour and Conservative Party conferences and spoke with nearly 50 parliamentarians, including ministers and frontbenchers. We held follow-up meetings with several MPs and peers post-event, including a Cabinet Minister.

We arranged for former Cabinet Minister, The Rt Hon George Eustice, to visit our Animal Replacement Centre of Excellent at Queen Mary University of London while former MP Martyn Day took part in an interview for our podcast series, Animal Free Labcast.

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In addition to these events, we have held meetings with 6 MPs to make the case for a kinder and more human relevant approach to science. 19 Parliamentary Questions have been tabled on our behalf advocating for the transition to animal free research and holding the Government to account on this issue.

Following the publication of a report that set out details of animal welfare failings in British labs, 2 MPs agreed to write to the Minister, raising their concerns. While the report showed a 10% decrease in the number of animal procedures compared to last year, faster progress is needed.

We provide secretariat support to the All-Party Parliamentary Group (APPG) on Human Relevant Science which unites MPs and Peers to advance human-relevant science in the UK. In June, Dr. Lorna Ewart from Emulate presented on liver-on-a-chip technology, a 3.6cm device that could accelerate safe medicine development and save lives.

Following our engagement efforts, including a meeting with the Science Minister, the Government has made several policy commitments to advance animal-free research including doubling funding and developing an action plan. They also announced their intention to ban the Forced Swim Test – a topic we have worked on alongside other organisations.

▪ Engage relevant bodies with NAMs

Ongoing: We submitted evidence to the Health and Social Care Select Committee’s Future Cancer Inquiry, providing robust information about the need to transition to animal free research.

We continue to engage with the Home Office via the Animals in Science Policy and Coordination Unit, working collaboratively with colleagues across the animal protection sector to ensure that the regulators of animal research are held to account, and that animals in labs are given a voice. We submitted evidence to the Animals in Science Committee (ASC) for a strategy review of licences that use non-human primates in research procedures.

We were invited to speak at a Defence, Science and Technology Laboratory of Porton Down meeting. 70 researchers welcomed our perspective on the need for animal use replacement, where we provided evidence on how animal data doesn’t translate to human biology.

During the year we continued to develop our relationships with other influential organisation including meeting with and producing a bespoke briefing for the Tony Blair Institute for Global Change and participating in the Lush Prize conference.

3 Generate income and engagement from our target audiences

▪ Solicit funding from target supporter audiences Achieved:

Gifts in Wills

Legacy gifts are vitally important to us, and over our 50 years, they have made up a significant portion of our resources. People who leave us a gift in their Will have often had a lifelong passion for animal welfare while others are passionate about advanced medical research and funding cures.

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We were truly moved by the generosity of people who chose to leave us a gift in their Will and were humbled to receive 26 legacy gifts during the year and we remember them with gratitude.

Individual giving

Our focus this year was to maintain individual giving in a tricky financial climate. We continued to publish our quarterly newsletter, Replacement News, and send regular emails to keep our supporters informed and engaged about the work their generous donations make possible. We have also undertaken social media advertising to increase awareness of our charity and reach new supporters with our positive message.

We continued the use of integrated mini-campaigns with a spotlight focus on a disease-specific project in order to raise awareness and funds. For the third and final time, our Valentine’s Day campaign focus was the study of heart failure at the University of Nottingham. Under the strapline “Helping to heal broken hearts”, this approach again proved to be appealing to supporters, raising more than £40k for this innovative animal-free research.

Regular unrestricted funding is vital to our financial stability. During the summer we launched a new fundraising lottery in partnership with Sterling Lotteries and had attracted nearly 100 new supporters by the year end.

Trusts and foundations

We continued to prioritise our relationships with trusts and foundations and were grateful to receive gifts totalling £243k from a number of bodies including the UKRI/MRC.

Community giving

Building on the success of last year’s new ‘Challenge for Change’ campaign, we continued to attract fundraisers to our cause and saw them taking on challenges for the benefit of Animal Free Research UK. We added several more sponsored events to our portfolio and cheered on one supporter who walked the entire 205 mile length of the river Thames, and another who ran 5km every day for a year!

▪ Educate and engage with supporters and target audiences

World Animal Free Research Day

The day of our charity’s founding – 27 May – is World Animal Free Research Day. At this time we encourage our supporters to remember the countless animals who suffer and die in the name of medical research but ask them to look ahead with optimism for the future. As part of the celebrations we invited 8 funders to visit our Animal Replacement Centre at University of Exeter where several of our grant holders presented their work.

“Thank you so much for the invitation to attend the presentations and Lab tour today. So so so very interesting. I can’t tell you how impressed I am with the work you are all doing. I will be doing my best to persuade the board of trustees that we should support your efforts as much as we can. Thank you again for such a great day” – attendee feedback from a trust funder.

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Advocacy campaigns

We harnessed the voice of our supporters to support our call for the UK Government to take action to support the transition from animal-based to animal-free research. Throughout the year, our supporters sent more than 5,000 emails to their MPs asking them to accelerate the development and uptake of human-specific science in the UK.

In recognition of our public affairs work, we were honoured to be shortlisted for the LUSH Lobbying prize in January!

Podcast

The “Animal Free Labcast” returned in 2023 with series 3 being launched by our patron Joanna Lumley. The podcast, hosted by our CEO, is a frank, lively exchange of ideas and experiences with leading scientists, policy makers and animal protection ambassadors who are part of the animal-free innovation revolution.

Celebrity engagement

To help us reach more people, we enlisted the support of our patrons Dame Joanna Lumley and Carol Royle, along with Chris Packham, Michaela Strachan, Will Young, and Kirsty Gallagher who kindly supported our work with posts on social media and quotes of support.

4 Ensure effective governance, systems and processes

▪ Effectively manage the charity’s resources

In progress: We have an extensive suite of policies and procedures to ensure that the charity is operating effectively and in line with best practice, and they are reviewed on a regular basis.

We regularly assess our suppliers’ costs and performance to ensure value for money.

▪ Attract and retain high calibre staff

In progress: During the year we successfully recruited for several positions to meet our needs as a growing organisation. We welcomed new team members in science and fundraising.

We carried out our annual staff engagement survey and were again delighted by the overwhelming positive response, with 100% of respondents being proud to work for Animal Free Research UK.

▪ Operating within a culture of continuous improvement

In progress: Using a systems thinking approach, we continued to explore how the charity can best nurture its relationships in order to maximise opportunities and accelerate the transition to using new approach methodologies in medical research.

We commissioned an independent review of the charity’s working practices and culture to ensure that the charity and its staff are operating at the highest possible level.

We successfully set up a new CRM system to help us engage more effectively with our stakeholders. We also carried out a review of internal processes to optimise our ways of working.

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Future plans

During the year ahead we plan to:

1. Strengthen the case for a transition to new approach methodologies (NAMs)

2. Support researchers in academia and industry to transition to NAMs

3. Support decision makers to implement policy change that benefits patients, boosts economic growth, and improves animal protection

4. Grow income and engagement from our supporters

5. Support effective and efficient delivery of operations

Financial review

The charity achieved total income for the year of £1,445,123 (2023: £1,539,316) and we sincerely thank our supporters for their generosity. £558,409 (2023: £764,876) was generated from donations and grants while £855,897 (2023: £762,695) came from legacies. Gifts in wills continue to be an important source of income and while the total value of donations from individuals was a decrease on the prior year, donation income has held up well considering the external environment and pressures on people’s ability to give. We received government grant funding totalling of £156,183 (2023: £248,474) from the Medical Research Charities Support Fund for Early-Career Researchers.

Last year’s strong financial performance enabled us to maintain our spending level during this year. The charity incurred total expenditure of £1,319,007 (2023: £1,397,250).

The charity recorded a surplus of £125,606 (2023: £139,266) and so ends the year in a financially sound position with free reserves of £1.76m. This will enable the charity to pursue additional ways of further enhancing its ability to accelerate the transition to using new approach methods in medical research, while ensuring that the charity remains financially resilient in a challenging economic environment.

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Post-year end, Animal Free Research UK was the victim of a sophisticated bank fraud perpetrated by an external party. It was immediately reported to the bank and the relevant authorities and efforts are ongoing to recover the stolen funds. See note 22 for further details.

Investment Policy

The charity seeks to avoid investing its funds with institutions which are either directly involved or affiliated with practices that are in conflict with its deeply held views about the ethical treatment of animals. In 2021, the Trustees agreed a stricter ethical policy, with particular emphasis on prioritising investments in products and institutions that are aligned with the charity’s objects, values and policies.

The respective positions of these products and institutions are kept under regular review. The Trustees have absolute discretion to invest and confirm that Animal Free Research UK’s assets are available and adequate to fulfil all the obligations of the charity. All decisions are taken by the Board of Trustees at its quarterly meetings.

Reserves policy and going concern

We monitor and review the suitability of our reserves policy at least annually.

Because a sizeable portion of the charity’s income is derived from legacy gifts, which by its nature is unpredictable, the Trustees consider that free reserves should be at a level where, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised or cost-saving measures may be implemented. The charity continues to operate a policy of retaining sufficient funding to cover at least six months of non-grant and operating expenditure and we remain in compliance with this policy.

At the year end the charity held funds of £2,405,478 (2023: £2,279,872), comprising £5,072 of tangible fixed assets (equipment), £56,000 of investment property, and £2,911,941 of current assets (primarily cash at bank and fixed term deposits).

The charity has £40,339 (2023: £27,468) of restricted funding and £542,543 (2023: £557,516) is designated for future grant giving. The remaining funds of £1,822,596 (2023: £1,694,888) are held as general funds.

The free reserves (being total reserves less restricted and designated funds and excluding the value of tangible fixed assets and investments) stand at £1,761,524 (2023: £1,633,398) representing approximately 16 months’ expenditure based on the 2024/25 budget.

The Trustees take a prudent view of legacies due and commit general reserves to charitable activity as soon as appropriate. Management and the Trustees regularly review detailed forecasts of income, expenditure and cash flows, and expected figures are carefully monitored against actual outcomes with variances highlighted and discussed. The Trustees are monitoring the ongoing challenges in the economic and funding environment, which have been fuelled by the tragic events in Ukraine and the UK cost-of-living crisis, and anticipate a negative impact on the charity’s ability to raise funds in the short-term. The Trustees have decided to use its surplus reserves to ensure that the charity can continue to deliver its continuing activities while exploring other higher impact approaches to serving its mission without reducing its current activity levels. The Trustees are therefore confident that the charity remains a going concern.

16

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2024

Public Benefit

The Trustees confirm that they have paid due regard to the public benefit guidance published by the Charity Commission and Office of the Scottish Charity Regulator. The charity refers to the public benefit guidance when reviewing and setting its aims and objectives and in future planning.

Our Fundraising Practices

Animal Free Research UK aims to carry out only the best fundraising practice and ensures that our supporters and the wider public are treated fairly and with respect. Our supporters are at the heart of our charity and enjoying relationships of trust and respect with them is of the highest importance to us.

Fundraising Standards

Animal Free Research UK uses a range of fundraising activities to raise vital funds towards our vision of a world where human diseases are cured faster without animal suffering.

Our Board of Trustees and Senior Management Team are deeply committed to building trust with our supporters. We are a member of the Fundraising Regulator and follow the Code of Fundraising Practice and the Fundraising Promise.

Working with Third Party Fundraisers

We acknowledge that the use of third parties in fundraising can enhance our ability to raise funds and support our activities; however, it is imperative that we have the right safeguards in place to protect our supporters, our reputation and our financial position.

Animal Free Research UK requires that any agency or third party with whom we work complies with relevant standards and regulations such as the Code of Fundraising Practice and data protection legislation. We follow a robust procurement process and review their work against performance targets to ensure we are delivering the best value for money for the charity and our supporters. Quality assurance includes briefing the team on the charity’s vision, mission, values and work, regular reviews of complaints and other feedback, and audits of telephone calls made by agency fundraisers. Our development committee has responsibility for all aspects of quality assurance and compliance relating to fundraising and associated activities.

Protecting vulnerable people

We are aware that any charity which operates in the public domain may come into contact with people who may be vulnerable. We set ourselves high standards and we work regularly with third party agencies and fundraisers to review policies, procedures and performance.

Over the course of the year we received 0 complaints (2023: 0 complaints received) related to our fundraising activities. We are committed to studying any expression of dissatisfaction and identifying ways to improve. Our complaints procedure is publicly available on our website.

Structure, governance and management

The charity is a company limited by guarantee.

17

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2024

Governing document

Animal Free Research UK is a company limited by guarantee and the governing document is its Articles of Association. The charity is registered in England and Wales (1146896) and Scotland (SC045327). The charity has two linked charities, The Alan and Kathie Stross Research fellowships charity (1146896-1) and the Dr Hadwen Trust for Humane Research (1146896-2). The Dr Hadwen Trust was dormant until 30 September 2013, at which time a transfer agreement was signed by the Trustees of Dr Hadwen Trust for Humane Research and the Dr Hadwen Trust, the intended effect of which was to transfer all assets, liabilities and activities, to the Dr Hadwen Trust (now renamed as Animal Free Research UK).

Appointment of Trustees

All Trustees are appointed by the Board following a process of open competition. After a probationary period of two quarterly meetings, Trustees-elect are agreed as full Trustees if the Board decrees. The Trustee Board must consist of not less than five and not more than twelve Trustees. They are recruited from amongst those who apply and demonstrate a firm commitment to the ethos of the Animal Free Research UK, are aligned to the aims of the charity and have a range of appropriate skills.

Trustee induction and training

An induction pack is provided to all new Trustees, and they are invited to attend an intensive induction during which they are provided with information on the key activities of Animal Free Research UK. Where collective training needs are established, these are delivered to the Board as a whole. Currently trustee training takes the form of mentoring from existing Trustees, external networks and professional courses, conferences and seminars detailing the latest Charity Commission and office of the Scottish Regulators requirements for Trustees and effective governance practice.

The charity is run by the board of directors, who are the charity’s Trustees. All directors give of their time freely and no director received remuneration in the year. Details of directors’ expenses are disclosed in note 8 to the accounts. The board administers the charity and meets a minimum of four times a year, taking all important strategic, policy and financial decisions which are formally tabled for approval at the Trustees’ quarterly meetings. To aid governance, the Board has committees which meet quarterly:

HR, Legal and Governance Committee – human resources, governance and regulatory compliance; Finance & Fundraising Committee – financial and fundraising performance, compliance and policies; and

Mission Delivery Committee – grant-making, education and public affairs.

Organisation

Animal Free Research UK operates on a day-to-day basis with a team of 17 full and part-time personnel who work under the direction of the Chief Executive who reports directly to the Trustees and has delegated responsibility from the Trustees for the day-to-day management of the charity.

The Trustees gratefully acknowledge the generous support of volunteers and fundraisers who freely gave their time to assist Animal Free Research UK, and of supporters whose kind donations enable the continued work of the charity.

18

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2024

Related parties and co-operation with other organisations

None of the Trustees receive remuneration or other benefit from their work with the charity. None of them has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

Pay policy for senior staff

The pay of senior staff is reviewed annually by the HR, Legal and Governance Committee which takes into account retention of staff against affordability and benchmarking against pay levels in other charities of a similar size.

Risk Management

The Trustees have a risk management strategy which comprises:

The Trustees have assessed the major risks to which the charity is exposed and have delegated responsibility to the Chief Executive to put in place robust processes to mitigate exposure to these. We have a comprehensive risk register which is reviewed regularly by the senior management team with noteworthy changes and risks shared with the Trustees on a quarterly basis.

The Trustees remain of the view that the charity’s income and current level of free reserves will permit it to continue to operate for the foreseeable future.

Statement of Trustees' responsibilities

The Trustees, who are also the directors of Animal Free Research UK for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these accounts, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with all current companies and charity legislation and best practice. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

19

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2024

The Trustees' report, including the strategic report, was approved by the Board of Trustees.

Auditors

Godfrey Wilson Limited were re-appointed as auditors to the charitable company during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on 17 December 2024 and signed on their behalf by

Daniel S Cameron Geoffrey J Pilkington

Geoffrey Pilkington (Chair) Daniel Cameron (Treasurer) Trustee Trustee

20

Independent auditors' report

To the members and the trustees of

Animal Free Research UK Ltd

Opinion

We have audited the financial statements of Animal Free Research UK Ltd (the 'charity') for the year ended 31 March 2024 which comprise the statement of financial activities, balance sheet, statement of cash flows and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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 the provisions available for small entities, in the circumstances set out in note 8 to the financial statements, 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 charity'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 other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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.

21

Independent auditors' report

To the members and the trustees of

Animal Free Research UK Ltd

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our 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.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement set out in the trustees’ report, 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so.

22

Independent auditors' report

To the members and the trustees of

Animal Free Research UK Ltd

Our responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance 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 procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:

(1) We obtained an understanding of the legal and regulatory framework that the charity operates in, and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance.

(2) We reviewed the charity’s policies and procedures in relation to:

(3) We inspected the minutes of trustee meetings.

(4) We enquired about any non-routine communication with regulators and reviewed any reports made to them.

(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations.

(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error.

(7) We assessed the risk of fraud through management override of controls and carried out procedures to address this risk. Our procedures included:

23

Independent auditors' report

To the members and the trustees of

Animal Free Research UK Ltd

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. Irregularities that arise due to fraud can be even 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 charity’s members, as a body, in accordance with Chapter 3 of part 16 of the Companies Act 2006, and to the charity’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity’s members and trustees 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 charity, the charity's members as a body and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Alison Godfrey

Date: 17 December 2024

Alison Godfrey FCA (Senior Statutory Auditor) For and on behalf of: GODFREY WILSON LIMITED Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

24

Animal Free Research UK Ltd

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2024

Note
Income from:
Donations and legacies
3
Other trading activities
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
5
Net income / (expenditure) before losses
Net losses on investments
14
Net income / (expenditure)
Transfers between funds
Net movement in funds
8
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Restricted Unrestricted
£
£
297,599
1,116,707
-
10,070
-
20,747
297,599
1,147,524
-
356,821
1,001
961,185
1,001
1,318,006
296,598
(170,482)
-
(510)
296,598
(170,992)
(283,727)
283,727
12,871
112,735
27,468
2,252,404
40,339
2,365,139		 2024
2023
Total
Total
£
£
1,414,306
1,527,571
10,070
3,211
20,747
8,534
1,445,123
1,539,316
356,821
339,453
962,186
1,057,797
1,319,007
1,397,250
126,116
142,066
(510)
(2,800)
125,606
139,266
-
-
125,606
139,266
2,279,872
2,140,606
2,405,478
2,279,872

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 18 to the accounts.

25

Animal Free Research UK Ltd

Balance sheet

As at 31 March 2024

Note
Fixed assets
Tangible assets
11
Investments
12
Current assets
Debtors
13
Current asset investments
14
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within 1 year
15
Net current assets
Total assets less current liabilities
16
Net assets
17
Funds
18
Restricted funds
Unrestricted funds
Designated funds
General funds
Total charity funds
Creditors: amounts falling due after more than
1 year		 £
1,029,507
169,295
1,713,139
2,911,941
(463,815)		 2024
£
5,072
56,000
61,072
2,448,126
2,509,198
(103,720)
2,405,478
40,339
542,543
1,822,596
2,405,478		 2023
£
5,490
56,000
61,490
931,668
227,924
1,725,760
2,885,352
(435,163)
2,450,189
2,511,679
(231,807)
2,279,872
27,468
557,516
1,694,888
2,279,872

These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

Approved by the trustees on 17 December 2024 and signed on their behalf by

Geoffrey J Pilkington

Daniel S Cameron

Geoffrey Pilkington (Chair) Daniel Cameron (Treasurer) Trustee Trustee

26

Animal Free Research UK Ltd

Statement of cash flows

For the year ended 31 March 2024

Note
Cash used in operating activities:
Net cash used in operating activities
19
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of tangible fixed assets
Proceeds from the sale of investments
Net cash provided by investing activities
Decrease in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Comprised of:
Cash at bank and in hand
Cash equivalents held in current asset investments
14		 2024
£
(87,717)
20,747
(3,770)
60,190
77,167
(10,550)
1,892,984
1,882,434
1,713,139
169,295
1,882,434		 2023
£
(164,606)
8,534
(1,740)
-
6,794
(157,812)
2,050,796
1,892,984
1,725,760
167,224
1,892,984

The charity has not provided an analysis of changes in net debt as it does not have any long term financing arrangements.

27

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2024

1. Accounting policies

a) Basis of preparation

Animal Free Research UK is a charitable company limited by guarantee registered in England and Wales. The registered office address is 27 Old Gloucester Street, London, WC1N 3AX.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006.

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

b) Going concern basis of accounting

The accounts have been prepared on the assumption that the charity is able to continue as a going concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves. There are no material uncertainties about the charity's ability to continue as a going concern.

c) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

d) Interest receivable

28

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2024

1. Accounting policies (continued)

e) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity.

Transfers from restricted funds to unrestricted funds represent income received during the year which carries donor imposed conditions to be expended upon specific projects. The cost of these projects has been recognised through the Statement of Financial Activities in a prior period when the grant commitment was originally made and therefore when the income is received it is transferred to unrestricted funds to follow the treatment of the expenditure when it was recognised.

f) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

g) Allocation of support and governance costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities on the same basis of as staff costs:

2024 2023
Raising funds 35.7% 33.8%
Charitable activities 64.3% 66.2%

h) Grants payable

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

i) Tangible fixed assets

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Computer equipment

33% straight line

Items over £500 are capitalised.

29

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2024

1. Accounting policies (continued)

j) Investment property

Investment property is property (land or a building, or both) held (by the owner or by the lessee under a finance lease) to earn rentals or for capital appreciation or both.

Investment property is initially measured at valuation when gifted. Investment property is subsequently measured at fair value at the reporting date. This method of valuation applies to all the charitable company’s investment properties.

Gains or losses arising from changes in the fair value of investment property are included in net profit or loss on the face of the Statement of Financial Activities for the period in which they arise.

k) Debtors

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

l) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

m) Current asset investments

Current asset investments are investments which a charity holds for resale or pending their sale and cash or cash equivalents with a maturity date in excess of 30 days and less than one year.

n) Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

o) Financial instruments

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

p) Pension costs

The company operates a defined contribution pension scheme for its employees. There are no further liabilities other than that already recognised in the SOFA.

q) Foreign currency transactions

Transactions in foreign currencies are translated at rates prevailing at the date of the transaction. Balances denominated in foreign currencies are translated at the rate of exchange prevailing at the year end.

30

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2024

1. Accounting policies (continued)

r) Accounting estimates and key judgements

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

Depreciation

As described in note 1i to the financial statements, depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life.

Legacy valuations

Determining the value of legacy debtors requires an estimation of the future cash flows expected to be received from the legacy. Actual results may differ from these estimates because the value of legacy is usually dependant on the amount of cash realised from the estate in which the legacy relates, and the recognition of a debtor as per the SORP usually precedes the cash receipt. The charity uses the expertise of a professional to estimate future amounts based on supporting evidence.

Investment properties

The valuation is of investment property is deemed to be the market value of the land, as determined by a RICS registered surveyor.

31

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2024

2. Prior period comparatives: statement of financial activities

Income from:
Donations and legacies
Charitable activities
Other trading activities
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net income / (expenditure) before losses
Net losses on investments
Net income / (expenditure)
Transfers between funds
Net movement in funds
3.
Income from donations and legacies
Donations
Legacies
Total income from donations and legacies
Prior period comparative:
Donations
Legacies
Total income from donations and legacies		 Restricted
£
£
404,917
1,122,654
-
-
-
3,211
-
8,534
404,917
1,134,399
-
339,453
24,651
1,033,146
24,651
1,372,599
380,266
(238,200)
-
(2,800)
380,266
(241,000)
(427,646)
427,646
(47,380)
186,646
Restricted
£
£
297,599
260,810
-
855,897
297,599
1,116,707
Restricted
£
£
404,917
359,959
-
762,695
404,917
1,122,654
Unrestricted
Unrestricted
Unrestricted		 2023
Total
£
1,527,571
-
3,211
8,534
1,539,316
339,453
1,057,797
1,397,250
142,066
(2,800)
139,266
-
139,266
2024
Total
£
558,409
855,897
1,414,306
2023
Total
£
764,876
762,695
1,527,571

32

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2024

4. Government grants

5. Total expenditure

Total expenditure
Grants payable (note 6)
Other charitable expenditure
Staff costs (note 9)
Other fundraising costs
Other and temporary staff costs
Depreciation
Print, postage and stationary
Rent and rates
Sundry expenses
Telephone
Travel expenses
Insurance
Bank and other charges
Computer costs
Advertising and marketing
Accountancy
Legal and professional
Sub-total
Total expenditure
Allocation of support and
governance costs		 Raising
funds
£
-
-
169,767
3,976
199
-
9,769
-
897
-
683
-
2,554
1,457
32,979
-
-
222,281
134,540
356,821		 Charitable
activities
£
154,778
57,813
346,571
-
180
-
447
2,941
2,551
10
14,239
-
-
61,105
46,893
-
-
687,528
274,658
962,186		 Support and
governance
costs
£
-
-
232,844
-
22,073
4,188
5,430
9,201
7,099
2,779
13,043
1,710
2,335
34,798
1,566
13,300
58,832
409,198
(409,198)
-		 2024 Total
£
154,778
57,813
749,182
3,976
22,452
4,188
15,646
12,142
10,547
2,789
27,965
1,710
4,889
97,360
81,438
13,300
58,832
1,319,007
-
1,319,007

Total governance costs were £19,143 (2023: £20,719).

33

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2024

5. Total expenditure (continued) Prior period comparative

Grants payable (note 6)
Other charitable expenditure (restated)
Staff costs (note 9)
Other fundraising costs
Other and temporary staff costs
Depreciation
Print, postage and stationary
Rent and rates
Sundry expenses
Telephone
Travel expenses
Insurance
Bank and other charges
Computer costs
Advertising and marketing
Accountancy
Legal and professional (restated)
Sub-total
Total expenditure
Allocation of support and governance
costs		 Raising
funds
£
-
-
151,471
2,718
143
-
4,583
-
2,210
-
-
-
2,762
14,477
26,353
-
4,778
209,495
129,958
339,453		 Charitable
activities
£
358,524
61,007
296,168
-
186
-
838
-
1,760
-
13,917
-
-
1,973
65,480
-
3,840
803,693
254,104
1,057,797		 Support and
governance
costs
£
-
-
233,793
-
13,081
4,971
4,760
7,094
2,619
4,056
14,856
1,721
1,978
32,887
263
9,310
52,673
384,062
(384,062)
-		 2023 Total
£
358,524
61,007
681,432
2,718
13,410
4,971
10,181
7,094
6,589
4,056
28,773
1,721
4,740
49,337
92,096
9,310
61,291
1,397,250
-
1,397,250

£57,163 of event production costs have been reclassified from legal and professional to other charitable expenditure. This is purely for reclassification purposes and has not affected the allocation of support and governance costs or total expenditure.

34

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2024

6. Grants payable to institutions

Grants are made for the purpose of developing new techniques for non animal research. The amount payable and committed in the period for this period and future periods comprise the following:

2024
No.
Research grants:
University of Aberdeen
-
University of Derby
-
Edge Hill University
-
University of Exeter
-
University of Hertfordshire
1
Heriot-Watt University
-
University of Hull
1
Imperial College London
-
University of Keele
-
King's College London
-
University College London
-
University of Leeds
-
University of Liverpool
1
University of Northumbria
1
Nottingham Trent University
1
Organo Therapeutics SARL
1
University of Oxford
-
Queen Mary University of London
1
Revivocell Limited
1
University of Sheffield
-
Sheffield Hallam University
-
University of Strathclyde
-
University of Suffolk
-
Trinity College Dublin
-
Total grants committed during the period
Total grant expenditure
Grants overspent / (written back) from
prior periods		 2024
2023
£
No.
-
1
-
1
-
1
-
4
7,165
4
-
1
24,606
1
-
1
-
1
-
1
-
1
-
1
24,719
-
4,985
1
24,768
-
23,000
-
-
1
24,732
1
23,984
-
-
2
-
1
-
2
-
1
-
1
157,959
(3,181)
154,778		 2023
£
21,500
10,000
10,000
207,570
10,910
3,560
3,560
2,400
1,961
10,000
2,555
3,560
-
9,897
-
-
5,000
10,000
-
5,640
2,560
5,092
10,000
25,000
360,765
(2,241)
358,524

35

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2024

7.
Grants commitments
Grants payable to institutions:
Grant commitments brought forward
Grants committed during the period
Grants paid during the period
Less: written back grants from prior periods
Grant commitments carried forward		 2024
£
626,378
157,959
(277,620)
(3,181)
503,536		 2023
£
598,835
360,765
(330,981)
(2,241)
626,378

8. Net movement in funds This is stated after charging:

Net movement in funds
This is stated after charging:
2024 2023
£ £
Depreciation 4,188 4,971
Trustees' remuneration Nil Nil
Trustees' reimbursed expenses 204 2,518
Auditors' remuneration (excluding VAT):
Statutory audit 9,800 9,200
Other services 350 350

Trustees reimbursed expenses relate to travel costs for 2 trustees (2023: 6 trustees for travel and accommodation costs).

In common with other charities of our size and nature we use our auditors to assist with the preparation of the financial statements and to prepare and submit returns to the tax authorities.

9.
Staff costs and numbers
Staff costs were as follows:
Salaries and wages
Social security costs
Pension costs		 2024
£
670,898
66,289
11,995
749,182		 2023
£
609,816
62,586
9,030
681,432

There were no redundancy or termination costs included in salaries and wages in the current or prior year.

One employee earned between £60,000 and £70,000 (2023: 1) and one employee earned between £70,000 and £80,000 during the year (2023: 1).

36

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2024

9. Staff costs and numbers (continued)

The key management personnel of the charitable company comprise the Trustees, Chief Executive Officer, Director of Finance and Operations, Director of Development, Director of Science, Director of Public Affairs and Commercial Director. The total employee benefits of the key management personnel were £379,225 (2023: £339,973).

Average FTE and headcount:

Charitable activities
Generating funds
Support and governance
Average FTE
Average headcount		 2024
No.
6.4
4.0
4.1
14.5
16		 2023
No.
6.4
3.5
4.5
14.4
16

10. Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

11. Tangible fixed assets

Cost
At 1 April 2023
Additions in year
Disposals
At 31 March 2024
Depreciation
At 1 April 2023
Charge for the year
Disposals
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023		 £
23,116
3,770
(1,194)
Computer
equipment
25,692
17,626
4,188
(1,194)
20,620
5,072
5,490

37

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2024

12. Investments

Market value
At 1 April 2023
Additions in year
At 31 March 2024		 £
56,000
-
Investment
property
56,000

The investment property comprises an ultimate 12.5% interest in a plot of agricultural land at Denmead (see note 20). The property was last valued in September 2022 by Simon Proctor MRICS of Proctor Chartered Surveyors, Milton Keynes, RICS registered valuer. The fair value is deemed to be the estimated market value of the land.

13. Debtors

Trade debtors
Accrued legacy income and other debtors
Other accrued income
Prepayments		 2024
£
157,676
853,886
3,918
14,027
1,029,507		 2023
£
146,132
727,116
33,834
24,586
931,668

14. Current asset investments

Current asset investments
Market value at 1 April 2023
Disposal proceeds
Unrealised losses
Movement in cash balances
Market value at 31 March 2024
Represented by:
Short term investments
Cash and cash equivalents
Total		 2024
£
227,924
(60,190)
(510)
2,071
169,295
-
169,295
169,295		 2023
£
578,106
-
(2,800)
(347,382)
227,924
60,700
167,224
227,924

38

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2024

15. Creditors : amounts due within 1 year

Trade creditors
Grants payable (note 7)
Other taxation and social security
Accruals
Other creditors
16. Creditors : amounts due after 1 year
Grants payable (note 7)
17. Analysis of net assets between funds
£
Tangible fixed assets
-
Investments
-
Current assets
40,339
Current liabilities
-
Non current liabilities
-
Net assets at 31 March 2024
40,339
Prior period comparative
£
Tangible fixed assets
-
Investments
-
Current assets
27,468
Current liabilities
-
Non current liabilities
-
Net assets at 31 March 2023
27,468
Restricted
funds
Restricted
funds		 Designated
funds
£
-
-
542,543
-
-
542,543
Designated
funds
£
-
-
557,516
-
-
557,516		 2024
£
23,229
399,816
18,563
18,305
3,902
463,815
2024
£
103,720
£
5,072
56,000
2,329,059
(463,815)
(103,720)
1,822,596
£
5,490
56,000
2,300,368
(435,163)
(231,807)
1,694,888
General
funds
General
funds		 2023
£
2,608
394,571
17,974
18,196
1,814
435,163
2023
£
231,807
Total
funds
£
5,072
56,000
2,911,941
(463,815)
(103,720)
2,405,478
Total
funds
£
5,490
56,000
2,885,352
(435,163)
(231,807)
2,279,872

39

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2024

18. Movements in funds

Movements in funds
Restricted funds
Antibody database
ARC 2.0
ARC 2.1
Barratt legacy
Breast cancer
Cancer
COVID-19
Diabetes
Lifetime CDT
Mini Hearts
Mini Lungs
Pound for a Hound
Summer studentships
The Underwood Trust
Other restricted funds
Total restricted funds
Unrestricted funds
Designated funds
Grant making fund
General funds
Total funds
Innovation for All pilot
grants
Total unrestricted
funds
Medical Research Council
grants
The Robert Luff
Foundation		 At 1 April
2023
£
23,250
-
-
840
-
528
-
-
-
-
2,248
-
227
215
-
-
-
160
27,468
557,516
1,694,888
2,252,404
2,279,872
 Income
£
-
5,758
19,403
-
3,550
443
869
573
25,000
12,131
156,183
15,906
1,235
179
30,000
1,001
25,000
368
297,599
-
1,147,524
1,147,524
1,445,123		 £
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1,001)
-
-
(1,001)
-
(1,318,006)
(1,318,006)
(1,319,007)
Expenditure		 £
(23,250)
(5,758)
(19,403)
(840)
(3,550)
(971)
(869)
(573)
(25,000)
(12,131)
(156,183)
(4,277)
-
(394)
(30,000)
-
-
(528)
(283,727)
(14,973)
298,700
283,727
-
Transfers
between
funds		 Gains /
losses
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(510)
(510)
(510)		 £
-
-
-
-
-
-
-
-
-
-
2,248
11,629
1,462
-
-
-
25,000
-
At 31
March
2024
40,339
542,543
1,822,596
2,365,139
2,405,478

40

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2024

18. Movements in funds (continued) Purposes of restricted funds

These funds arise where donations and legacies are granted to the charity with conditions imposed that restrict the use of the funding. These conditions tend to be broad, and are mostly as described. The following further explanations are provided:

Antibody database Funding awarded for the development of an animal free antibodies website database.

ARC 2.0 & ARC 2.1 Refers to funds donated specifically to support research being performed at the Animal Replacement Centre at University of Exeter.

Barratt legacy Refers to a legacy gift that was donated for the purpose of supporting research into the study of coronary thrombosis and stroke. Breast cancer Refers to funds donated specifically to support the study of breast cancer at University of Aberdeen. Cancer Refers to funds donated specifically to support the study of cancer at Queen Mary University of London.

Lifetime CDT Funds donated specifically for research being performed at the lifETIME Centre for Doctoral Training. Medical Research Funding awarded by the Medical Research Council (MRC) to support early Council grants career researchers. Mini Hearts Refers to funds donated specifically to support the study of heart disease at University of Nottingham. Mini Lungs Refers to funds donated specifically to support the study of RSV (Respiratory Syncytial Virus) at University College London. Pound for a Hound Refers to funds donated for the purpose of research into replacing the use of dogs in experiments.

The Robert Luff Funding awarded for Innovation Pilot Studies. Foundation

41

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2024

18. Movements in funds (continued) Purposes of restricted funds (continued) Summer studentships Refers to funds donated specifically to our annual summer student programme. The Underwood Trust Funding awarded for costs associated with new sub-brand, face to face engagement and dissemination of information and engagement with policymakers. Other restricted funds Contains smaller restricted donations of less than £500.

Purposes of designated funds Grant making fund The charity has earmarked funds for planned or aspired grant making, where grants have not yet been formally awarded. The designated fund as at 31 March 2024 is intended to cover new grant awards during the 2024-25 year, and continuation funding for certain existing projects when their current grants end.

Transfers between funds

Transfers from restricted funds to unrestricted funds represent income received during the year which carries donor imposed conditions to be expended upon specific projects. The cost of these projects has been recognised through the Statement of Financial Activities in a prior period when the grant commitment was originally made and therefore when the income is received it is transferred to unrestricted funds to follow the treatment of the expenditure when it was recognised.

42

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2024

18. Movements in funds (continued) Prior period comparative

Restricted funds
AFAAR grant:
Sex differences
Antibody database
ARC 2.0
Barratt legacy
Cancer
Cancer research - Biddle
COVID-19
Diabetes
Mini Hearts
Mini Lungs
Pound for a Hound
Public affairs
Summer studentships
Other restricted funds
Total restricted funds
Unrestricted funds
Designated funds
Grant making fund
General funds
Total funds
Total unrestricted
funds
Medical Research Council
grants		 At 1 April
2022
£
37,476
-
-
27,340
-
-
-
-
-
-
-
-
10,000
-
32
74,848
763,344
1,302,414
2,065,758
2,140,606
 Income Expenditure
£
£
-
-
25,000
-
6,082
-
-
-
528
-
12,977
-
1,661
-
1,885
-
248,474
-
33,114
-
44,187
-
215
-
-
-
24,651
(24,651)
6,143
-
404,917
(24,651)
-
-
1,134,399
(1,372,599)
1,134,399
(1,372,599)
1,539,316
(1,397,250)		 £
(37,476)
(1,750)
(6,082)
(26,500)
-
(12,977)
(1,661)
(1,885)
(246,226)
(33,114)
(43,960)
-
(10,000)
-
(6,015)
(427,646)
(205,828)
633,474
427,646
-
Transfers
between
funds		 £
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(2,800)
(2,800)
(2,800)
Gains /
losses		 At 31
March
2023
£
-
23,250
-
840
528
-
-
-
2,248
-
227
215
-
-
160
27,468
557,516
1,694,888
2,252,404
2,279,872

43

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2024

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

Net movement in funds
Adjustments for:
Losses on investments
Dividends, interest and rents from investments
Depreciation charges
Increase in debtors
Decrease in creditors
Net cash used in operating activities		 2024
£
125,606
510
(20,747)
4,188
(97,839)
(99,435)
(87,717)		 2023
£
139,266
2,800
(8,534)
4,971
(291,308)
(11,801)
(164,606)

20. Funds held as a custodian trustee on behalf of others

The charity holds a 50% interest in a plot of land in Denmead, received in 2013 via a legacy, in trust partially as a custodian trustee on behalf of three other charities. It is held for reason of capital appreciation. Each of the four charities, including Animal Free Research UK, holds a 12.5% ultimate interest in the land.

The charities for which Animal Free Research UK acts as a custodian trustee for are The League Against Cruel Sports, International Fund for Animal Welfare and the Cruelty Free International Trust (formerly BUAV Charitable Trust).

The objects of the three other charities relate to the prevention of the cruelty to and/or suffering of animals and are therefore closely aligned to those of Animal Free Research UK. A Declaration of Trust is in place to ensure the safe custody and segregation of such assets from the charity's own assets.

21. Contingent assets

In 2022, the charity was transferred a 6.25% beneficial interest in a family trust, known as The Hinge Trust. As at the date of signing the accounts, the trustees have been unable to ascertain the full contents of the trust, but are aware that the trust holds a large parcel of arable land, located at Brompton Farm Road, Rochester, ME2 3QZ. As the charity does not have control or significant influence over the trust, no amounts have been recognised in the accounts in this period.

The charity has a beneficial interest in two pieces of land in Bratislava, both of which are due to be sold. The timeline and proceeds are uncertain at the date of signing the accounts, and therefore no amounts have been recognised in the accounts in this period.

The charity has been notified that it is a beneficiary of a legacy, representing a 20% interest in the residuary estate. At the date of signing the accounts, the charity is not able to determine a reliable estimate of the amount that may be due to the charity and has therefore not been included in the accounts.

44

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2024

22. Non-adjusting post balance sheet event

In May 2024, the charity was the victim of a bank fraud resulting in an expected financial loss of £177,000. The fraud occurred after the balance sheet date, and as such, it does not reflect conditions that existed at the year end. Consequently, no adjustments have been made to the acounts in respect of this event.

The charity is actively working with its bank and relevant authorities to recover the funds. However, at the date of approval of these financial statements, the outcome of these efforts remains uncertain.

23. Related party transactions

During the year, 2 trustees made unconditional donations to the charity amounting to £1,150 (2023: £1,814 from 6 trustees).

There were no other related party transactions in the year.

45