2025-03-31-accounts - Animal Free Research UK

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

Animal Free Research UK Ltd Report and Audited Financial Statements 31 March 2025

Animal Free Research UK Ltd

Reference and administrative details

For the year ended 31 March 2025

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	resigned 25 November 2024
	D Cameron
	M Chan
	G Eustice	appointed	9 August 2025
	A Firth	appointed	9 August 2025
	G Pilkington (Chair)
	K Postlewhite	resigned 3 May 2024
	J Wilkinson
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

Animal Free Research UK Ltd

Reference and administrative details

For the year ended 31 March 2025

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

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2025

Chair of Trustees Statement

I am delighted to introduce our annual report for the year ending 31 March 2025. It has been a year of strategic growth and remarkable progress as we continue our mission to champion animal-free, human-specific technologies that deliver better treatments for human diseases faster.

This year, in the context of a new government and a rapidly evolving life sciences sector, we have made significant strides towards our vision. Our commitment to funding high-quality, animal-free research has never been stronger, and you will read about some of the groundbreaking projects we have supported, from creating human "mini-hearts" to developing human-relevant models for cancer and neurological diseases. This work is not only more ethical but is also scientifically superior, leading to more relevant results for patients.

In a landmark development following our reporting period, the U.S. Food and Drug Administration (FDA) published its new plan to phase out animal testing. This is a huge step forward for the global movement towards human-specific technologies, which we have been at the forefront of for years. The FDA's plan validates our approach and adds significant momentum to our efforts, including our Herbie's Law campaign, which seeks to establish a similar roadmap for the UK.

We also made a bold strategic move to engage more directly with the research community through the launch of the Centre for Human Specific Research. This new sub-brand is already building a credible voice in the scientific and commercial spheres, providing practical tools and resources that are essential for accelerating the transition to human-relevant methods.

On the policy front, our advocacy work has been more impactful than ever. The launch of the Herbie's Law campaign has brought the issue of animal-free research directly to the heart of government. We are proud of the cross-party support we have secured and the momentum we are building to create lasting legislative change that will benefit both patients and animals.

As we look ahead, we know that our journey would not be possible without the incredible support of our community. Your generosity and commitment fuel our work and inspire us every day. We also extend our deepest gratitude to our dedicated staff and trustees for their hard work and resilience in ensuring we continue to operate securely and effectively.

Together, we are not only advancing science; we are building a powerful movement for a kinder and more effective approach to medical research.

Professor Geoff Pilkington Chair of Trustees

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2025

The Trustees present their annual and strategic report together with the financial statements for the year ended 31 March 2025.

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 2019)” 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.

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

Rigorous and evidential – we present factual, reliable information. Our work is evidence-based, thoughtful and respected by our peers.
Pioneering – we place ethics at the heart of science through innovative, solutions-focused research. Our determination drives scientific discovery forward.
Compassionate – we care deeply about people and animals. Our ambition to end suffering is heartfelt and unswerving.

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”.

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2025

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:

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

Building on our substantial 50-year track record, the cornerstone of our work is replacing the use of animals in medical research by supporting more researchers to transition to NAMs. We achieve this by curating best practice in NAMs, facilitating collaboration and community, and funding researchers to make the transition from animal-based to animal-free research.

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.

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2025

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

▪ Award funding to high quality animal free research projects that demonstrate the benefits of NAMs

Achieved: Through our grant-making programmes, we continued to fund and complete highquality animal-free research projects which demonstrate the scientific and ethical advantages of human-relevant methods and highlight their potential to replace animal use in key areas of biomedical research.

In line with our business plan, we prioritised new awards where animal-free science can have the greatest impact, including drug-induced liver injury, dementia, breast cancer and cardiovascular disease. We also benchmarked our grant-making processes against the Association of Medical Research Charities (AMRC) best practice standards, ensuring that our funding decisions and research management are robust, transparent and accountable.

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

Dr Biddle oversaw the successful completion of a three-year PhD project developing an animalfree 3D tumour model. The peptide-based system replicates human cancer biology more accurately than animal-derived products, enabling high-quality imaging and cell analysis for future cancer therapies.

ARC 2.0 at University of Exeter: aging

Professor Harries’ team launched the Phyto Ageing Study, a human trial assessing a dietary supplement on ageing markers and joint health. By working directly with human participants and eliminating animal-derived materials in their lab work, this project bypasses the need for animal tests before clinical studies.

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

The lifETIME Centre for Doctoral Training focuses on developing animal-free technologies for drug discovery, toxicology screening and regenerative medicine. Through this strategic partnership, we are supporting the training of more than 100 PhD scientists in human-specific research.

Post-doctoral awards

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

Prof Denning’s team refined serum-free protocols to generate mini-hearts from human stem cells, advancing research into cardiac fibrosis. They showed that drug-like molecules can control harmful changes in fibroblasts, replacing the need for animal methods in cardiovascular science.

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2025

PhDs

Breast cancer research at University of Aberdeen

This PhD, co-funded with Medical Research Scotland, developed animal-free methods to predict breast cancer spread. The team replaced fetal bovine serum with human serum and showed how bone signals affect cancer cell behaviour, with a systematic review of animal-free cancer models still to come.

Smart materials for drug detection at University of Hertfordshire

Researchers developed molecularly imprinted polymers (MIPs) that mimic antibody binding without animals. Together with smart copolymers, these materials provide proof-of-concept for rapid, portable opioid detection devices that are more adaptable and ethical than current antibody-based tools.

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

The project created healthy lung models and adapted human lung cancer cells to grow without animal-derived products. A 3D tumour model was also developed, laying the groundwork for fully human systems to replace animals in lung cancer research.

Pilot study awards

- NEW: Developing animal free tools to study epilepsy at Aston University

Dr Burton is building human stem cell–based neuronal models to study seizure activity. This approach avoids animal reliance and offers a more accurate platform to test potential treatments.

- NEW: Developing a light controlled human cell system for safer drug testing at Keele University Dr Ragazzon is pioneering the use of light to control human cells for drug testing. This could provide a powerful alternative to animal-based studies by enabling precise analysis of cell behaviour.

ThermoPIGs: Imitation gelatins at University of Hertfordshire

The team synthesised poly-NAGA polymers that mimic the gel-like properties of gelatin, an animal-derived material. These polymers can be tuned to gel at different temperatures, offering a robust animal-free replacement for use in cell culture.

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

Researchers used human lung endothelial cells to uncover age- and sex-related changes linked to fibrosis. Their dataset is the most comprehensive to date and shows the feasibility of fully human in vitro approaches for studying lung disease.

Scientists’ attitudes on science, values and animal free research at Kingston University

Professor Peggs interviewed biomedical scientists about animal-free methods, generating over 12 hours of insights into motivations, ethics and barriers. Findings highlight growing recognition of animal-free methods as more relevant and creative.

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2025

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

This project developed 3D spheroids from donated human cells, fully replacing animal-derived components. The model is now used to study drug toxicity in fatty liver disease and has permanently changed cell isolation practices at the Liverpool facility.

– NEW: Developing a human blood brain barrier model to improve treatment of neurological diseases at University of Liverpool

Dr Patabendige is building a laboratory-grown model of the human blood–brain barrier, replacing flawed animal approaches. This system will better mimic human biology and support safer neurological drug development.

Developing animal-free brain organoids to uncover more breakthroughs in Parkinson’s disease

at Luxembourg University

Professor Schwamborn’s team grew brain organoids without animal-derived gels and replaced antibodies with recombinant alternatives. These breakthroughs show that complex brain research can be carried out entirely animal-free.

- NEW: Creating artificial models of breast tumours using human derived stem cells at University

of Nottingham

Dr Allegrucci is developing breast tumour models from human stem cells to study cancer growth and drug responses. These human-relevant systems will reduce reliance on animals and improve reliability in cancer research.

NEW: Developing synthetic DNA repair systems for safer, more effective therapies at the University of Nottingham

Dr Ashworth is engineering synthetic systems to study DNA repair in greater detail. This approach avoids animals and could lead to safer, more precise cancer therapies.

Developing new treatments for sarcopenia patients at Nottingham Trent University

Dr Santos developed a tissue-engineered muscle system entirely without animal components. The project is progressing towards a muscle-on-a-chip platform for studying muscle wasting diseases and testing treatments.

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 created a proof-of-principle bone marrow system using human stem cells. This provides a foundation for understanding blood cell production and diseases like anaemia without animal use.

Growing human liver cells to improve drug safety testing at Queen Mary University of London Professor Linton’s team developed human liver cells from stem cells that mimic bile production and respond to toxic drugs. This model could replace flawed animal tests in drug safety.

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

Dr Talari developed a liver-on-chip system using fully animal-free media and human cells. The model closely replicates human liver physiology and is now ready for further validation in drug safety testing.

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2025

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

This project tested electromagnetic fields on human stem cell–based muscle models. Despite early conclusion, initial findings suggest a safe, non-invasive approach to muscle repair.

- NEW: Building a human relevant model of leukaemia at University of Exeter Dr Piers is developing a patient-derived, animal-free system to study leukaemia. This will enable better understanding of disease progression and treatment responses in human-relevant conditions.

NEW: Developing a brain-on-a-chip to study rare neurological diseases at University College

London

Professor Massaro is creating a device using human stem cells to study Gaucher Disease, a rare neurological disorder. The chip will model brain and blood–brain barrier functions, supporting research and drug development without animal use.

Other awards

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

Researchers built a human-relevant model of blood clotting and breakdown, replacing animalderived components. The system has been presented at major conferences and holds strong potential for drug screening and patient-focused studies.

2 Support researchers in academia and industry to transition to NAMs
Identify and understand our stakeholders to shape products and services that support the transition to animal free research
Deliver an engagement and outreach programme to influence and support our stakeholders

Ongoing: During the year we laid important foundations for engaging researchers across both industry and academia through the creation of the Centre for Human Specific Research. Established as a sub-brand of Animal Free Research UK, the Centre is designed to speak directly to the scientific and commercial drivers of research and development. Its name, mission, vision and values were co-created through market research and stakeholder input, and a dedicated website launched in December 2024. The Centre exists to raise awareness of humanspecific science, provide tailored training and resources, foster collaboration and advocate for policy change to improve patient outcomes.

Early activity under the Centre included:

Publishing short science papers on barriers to adoption and the realities of drug development;
Responding to enquiries from researchers through a pilot “ask the expert” service, offering practical guidance; and
Representing the Centre at industry conferences and networking events, introducing the brand and promoting the benefits of human-specific research.

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2025

We also advanced practical tools to support researchers. Our Recombinant Antibodies and Mimetics Database was launched during the year, helping scientists identify animal-free antibodies that are more reliable and ethical than animal-derived reagents. The database has already enabled a contract research organisation to identify a non-animal antibody to trial in its work, a tangible example of transition in practice.

In March 2025, we jointly hosted a landmark scientific conference in York alongside Replacing Animal Research and the Humane Research Trust. Best practice in non-animal research methods brought together academics, industry professionals, early career researchers and advocates for two days of talks, seminars and networking.

We continued to celebrate excellence through the Pioneer Awards, recognising individual scientists whose work exemplifies innovation and leadership in the transition to animal-free research. These awards play an important role in raising the profile of the field and inspiring others to follow.

Through these combined initiatives we are building a stronger platform for the Centre for Human Specific Research, creating practical tools that directly support researchers and fostering collaboration and visibility across the community. While the work of the Centre is still at an early stage, the year marked a significant step towards establishing a credible, trusted voice for human-specific science that can influence both research practice and culture.

3 Support decision makers to implement policy change that benefits patients, boost economic growth, and improves animal protection
Build cross-party support for human-specific science;
Advance our campaign for a Human-Specific Technologies Act; and
Grow our network of relationships with influential bodies and build support for humanspecific science.

Achieved: We worked throughout the year to broaden political support for animal-free science across all parties. In spring 2024, we launched the Herbie’s Law campaign, calling for a new Human-Specific Technologies Act, supported by a draft Bill and parliamentary briefings. Named after a beagle rehomed from a laboratory, the proposed legislation sets out a ‘decade of change’ to phase out the use of animals in medical research by 2035, replacing them with humanspecific technologies that are more ethical and effective.

Former Justice Secretary Sir Robert Buckland championed the proposal in national and local media, while Baroness Natalie Bennett confirmed her support with several initiatives. Ahead of the General Election, 252 candidates pledged support and Labour and the Green Party both included commitments in their manifestos. Following the election, we engaged with new and reelected parliamentarians across all main parties, recording over 120 positive engagements before and during party conferences.

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2025

In October 2024, Steve Race MP introduced Herbie’s Law to Parliament – a major milestone for the campaign. We built momentum with parliamentary events including a Commons drop-in, a festive reception hosted by Peter Dowd MP, and a Lords roundtable chaired by Baroness Bennett with regulators and commercial voices in attendance. Alongside this, Ruth Jones MP tabled an Early Day Motion attracting 51 signatures, while more than 70 Written Questions and multiple debates were secured on our behalf. The campaign also gained strong public backing, with national media coverage and polling showing that seven in ten Britons support the measure.

Alongside parliamentary advocacy, we strengthened relationships with regulators, officials and external organisations. Highlights included establishing the All-Party Parliamentary Group on Phasing Out Animal Experiments in Medical Research, submitting evidence to the Animals in Science Committee on licence strategy, participation in sector roundtables and supporting the appointment of a member of our Science Advisory Panel, Dr Dharaminder Singh, to the Animals in Science Committee.

Through these activities we ensured that Animal Free Research UK is recognised as a leading expert voice on animal-free science, embedded in the key networks that shape future policy.

4 Grow income and engagement from our supporters ▪ Implement our annual fundraising plan for retention and recruitment of financial supporters;

Optimise our ways of working to ensure internal readiness for growth; and
Better understand our existing and potential supporters.

Ongoing: Legacy income continued to play a vital role in sustaining our work. During the year we launched a new partnership with Farewill, making it easier for supporters to pledge a gift, and were humbled to receive new commitments worth over £160,000. These extraordinary gifts reflect the generosity and vision of supporters who want their values to live on.

We maintained strong engagement with regular givers and appeal donors despite a difficult external climate. Themed appeals highlighted pioneering animal-free science in dementia, druginduced liver injury and breast cancer, raising thousands of pounds. An emergency appeal also helped offset a shortfall in legacy income. At Christmas, our 12 Days of Christmas campaign and festive card mailing together raised over £8,000, while a new online donation form made it easier for supporters to give.

Trusts and foundations provided essential backing for both scientific projects and public affairs work. Over 100 applications were submitted during the year, securing significant awards including £30,000 for ageing research, £25,000 for Herbie’s Law and the Centre for Human Specific Research, and renewed support from others.

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2025

Community fundraisers also inspired us. In September, our Bude community group celebrated raising £60,000 since 2015. Supporters Daisy and James pushed themselves to new limits: Daisy swam 22.5 miles, raising £2,000, while James completed his twelfth and final marathon of the year, raising over £1,500 – both gestures of extraordinary commitment.

Engagement was a key focus. More than 20,000 advocacy emails were sent through our supporter network, empowering individuals to call on candidates and MPs to support Herbie’s Law. Over 700 supporters completed our future-focused survey, giving valuable insight into what matters most to them. We continued to grow our social media presence, with hundreds of posts and tens of thousands of engagements, and our podcast, the Animal Free Labcast, gained a new co-host and expanded its reach. Events including our Cup of Compassion gathering in London, Herbie’s Festive Tea and the launch of our Supporters’ Choice Award all strengthened our connection with supporters.

Behind the scenes, we invested in improving systems and supporter care. A new Supporter Care Officer was appointed and we began integrating our CRM systems to streamline data. A new printer supplier was appointed through a competitive tender, saving significant costs. These improvements ensure that every gift goes further in supporting our mission.

While overall income was lower than budgeted due to a decrease in legacy receipts on the prior year, regular giving and single gifts remained strong. We are grateful to the thousands of people who gave, acted and spoke out with us this year. Together we are building a powerful movement for animal-free medical research.

5 Support effective and efficient delivery of operations

▪ Provide best value through deployment of existing and improved tools and processes; and

Adapt to emerging external and internal events.

Ongoing: We restructured the charity’s staff model, moving from three functional teams to audience-focused teams – Research Solutions, Public Affairs and Supporter Engagement – to align more closely with our strategy; new staff were successfully recruited and onboarded by year end. To strengthen systems, we implemented a CRM, refreshed our risk management approach and provided refresher staff training on various policies. We also completed our annual audit and business planning cycle, ensuring that our resources are well managed and aligned with strategic priorities. In addition, we conducted and followed up on staff engagement and EDI surveys to ensure our culture and practices reflect staff needs and values.

In response to a major fraud incident, trustees and staff undertook swift and significant work to recover stolen funds and improve cyber security, culminating in achieving Cyber Essentials accreditation. Alongside this we refreshed our Board with new expertise, applied for trademark protection for the Centre for Human Specific Research to secure its identity for the future and prepared to launch our Everyone is a Leader coaching programme to invest in leadership at all levels.

Together these steps ensured the charity could continue to operate securely and deliver impact despite internal and external challenges.

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2025

Future plans

During the year ahead we plan to:

1. Influence academia & industry to transition to new approach methodologies (NAMs)

Drive B2B engagement in human-specific research; and
Generate new revenue streams via the Centre for Human Specific Research.

2. Drive forward UK pledge to phase out animal testing

Enable Herbie's Law to progress as legislation; and
▪ Secure Government backing for Herbie’s Law.

3. Raise supporter awareness to deliver income growth

Secure £1.2m income; and
▪ Ensure future growth.

4. Support effective and efficient delivery of operations

Ensure organisation, resourcing, performance and monitoring of operational activities; and
▪ Support good governance.

Financial review

The charity achieved total income for the year of £1,035,302 (2024: £1,444,123) and we sincerely thank our supporters for their generosity. £458,098 (2024: £558,409) was generated from donations and grants while £531,921 (2024: £855,897) 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 no government grant funding (2024: £156,183) during the year.

Last year’s strong financial performance enabled us to maintain our spending level during this year. The charity incurred total expenditure of £1,530,866 (2024: £1,319,007).

The charity recorded a deficit of £495,564 (2024: surplus of £125,606) and so ends the year in a financially sound position with free reserves of £1.56m. 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.

During the year, 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 the majority of the funds have since been recovered.

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.

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2025

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 core activities while consideration is given to ways in which additional funds may be raised or cost-saving measures may be implemented.

The charity therefore operates a policy of retaining sufficient funding to cover at least six months of essential non-grant and operating expenditure and we remain in compliance with this policy. The trustees have determined that this level of reserves provides a sufficient safety net while allowing for flexibility in managing the charity's financial health.

At the year end the charity held funds of £1,909,914 (2024: £2,405,478), comprising £6,582 of tangible fixed assets (equipment), £56,000 of investment property, and £2,332,899 of current assets (primarily cash at bank and fixed term deposits).

The charity has £10,006 (2024: £40,339) of restricted funding and £280,000 (2024: £542,543) is designated for future grant giving. The remaining funds of £1,619,908 (2024: £1,822,596) 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 investment property) stand at £1,557,326 (2024: £1,761,524) representing approximately 12 months’ expenditure based on the 2025/26 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 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.

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.

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2025

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 (2024: 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.

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).

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2025

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 18 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.

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.

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2025

Risk Management

The Trustees have a risk management strategy which comprises:

An ongoing review of the principal risks and uncertainties that the charity faces;
The establishment of policies and processes to mitigate those risks; and
The implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.

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 directors of the charity for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with 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).

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

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees 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.

In so far as the trustees are aware:

there is no relevant audit information of which the charitable company's auditors are unaware; and
the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

Animal Free Research UK Ltd

Report of the trustees

For the year ended 31 March 2025

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

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

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 9 November 2025 and signed on their behalf by

Geoffrey J. Pilkington

Geoffrey Pilkington (Chair) Trustee

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 2025 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:

Give a true and fair view of the state of the charity's affairs as at 31 March 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
▪Have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006.

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.

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:

The information given in the trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.

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:

Adequate and proper accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
The financial statements are not in agreement with the accounting records and returns; or
Certain disclosures of trustees’ remuneration specified by law are not made; or
We have not received all the information and explanations we require for our audit; or
The trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.

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.

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:

Identifying, evaluating and complying with laws and regulations, and whether they were aware of any instances of non-compliance;
Detecting and responding to the risk of fraud, and whether they were aware of any actual, suspected or alleged fraud; and
Designing and implementing internal controls to mitigate the risk of non-compliance with laws and regulations, including fraud.

(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:

▪Testing the appropriateness of journal entries;
▪Assessing judgements and accounting estimates for potential bias;
▪Reviewing related party transactions; and
▪Testing transactions that are unusual or outside the normal course of business.

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.

William Guy Blake

Date: 10 November 2025

William Guy Blake ACA (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

Animal Free Research UK Ltd

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

For the year ended 31 March 2025

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 Net income / (expenditure) Transfers between funds Extraordinary item 23 Net movement in funds 8 Reconciliation of funds: Total funds brought forward Total funds carried forward	Restricted Unrestricted £ £ 99,480 890,539 - 22,582 - 22,701 99,480 935,822 - 344,856 25,000 1,104,079 25,000 1,448,935 74,480 (513,113) - - 74,480 (513,113) (104,813) 104,813 - (56,931) (30,333) (465,231) 40,339 2,365,139 10,006 1,899,908	2025 Total £ 990,019 22,582 22,701 1,035,302 344,856 1,129,079 1,473,935 (438,633) - (438,633) - (56,931) (495,564) 2,405,478 1,909,914	2024 Total £ 1,414,306 10,070 20,747
			1,445,123
			356,821 962,186
			1,319,007
			126,116 (510)
			125,606 - -
			125,606 2,279,872
			2,405,478

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.

Animal Free Research UK Ltd

Balance sheet

As at 31 March 2025

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	£ 912,735 173,045 1,247,119 2,332,899 (434,899)	2025 £ 6,582 56,000 62,582 1,898,000 1,960,582 (50,668) 1,909,914 10,006 280,000 1,619,908 1,909,914	2024 £ 5,072 56,000
			61,072 1,029,507 169,295 1,713,139
			2,911,941 (463,815)
			2,448,126
			2,509,198 (103,720)
			2,405,478
			40,339 542,543 1,822,596
			2,405,478

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 9 November 2025 and signed on their behalf by

Geoffrey J. Pilkington

Geoffrey Pilkington (Chair) Trustee

Animal Free Research UK Ltd

Statement of cash flows

For the year ended 31 March 2025

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 Proceeds from the sale of fixed assets 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	2025 £ (479,201) 22,701 (5,900) - 130 16,931 (462,270) 1,882,434 1,420,164 1,247,119 173,045 1,420,164	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

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

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2025

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

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

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2025

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:

	2025	2024
Raising funds	29.8%	32.9%
Charitable activities	70.2%	67.1%

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.

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2025

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.

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2025

1. Accounting policies (continued)

r) Accounting estimates and key judgements

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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.

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2025

2. Prior period comparatives: statement of financial activities

Income from: Donations and legacies 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 £ £ 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 Restricted £ £ 99,480 358,618 - 531,921 99,480 890,539 Restricted £ £ 297,599 260,810 - 855,897 297,599 1,116,707 Unrestricted Unrestricted Unrestricted	2024 Total £ 1,414,306 10,070 20,747
		1,445,123
		356,821 962,186
		1,319,007
		126,116 (510)
		125,606 -
		125,606
		2025 Total £ 458,098 531,921
		990,019
		2024 Total £ 558,409 855,897
		1,414,306

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2025

4. Government grants

In the prior year, the charity received one government grant, defined as funding from the UK Government Medical Research Charity Support Fund to fund charitable activities. The total value of this grant in the period ending 31 March 2024 was £156,183 (2025: £nil). There are no unfulfilled conditions or contingencies attaching to this grant in 2024/25, and no government grants were received.

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 £ - - 174,623 6,534 357 - 8,846 - 915 - 798 - 3,468 2,656 22,324 - 216 220,737 124,119 344,856	Charitable activities £ 174,313 65,689 410,665 - - - 2,022 1,150 1,757 15 26,620 - - 76,777 75,114 - 3,062 837,184 291,895 1,129,079	Support and governance costs £ - - 246,065 - 9,571 4,386 6,178 10,482 3,183 2,762 14,169 3,145 2,709 42,838 3,280 10,150 57,096 416,014 (416,014) -	2025 Total £ 174,313 65,689 831,353 6,534 9,928 4,386 17,046 11,632 5,855 2,777 41,587 3,145 6,177 122,271 100,718 10,150 60,374
				1,473,935 -
				1,473,935

Total governance costs were £15,941 (2024: £19,143).

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2025

5. Total expenditure (continued) Prior period comparative

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

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2025

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:

2025 No. Research grants: University College London 1 University of Exeter 1 University of Hertfordshire - University of Hull - University of Liverpool 1 University of Northumbria - University of Sheffield 1 Edge Hill University 1 Keele University 1 Nottingham Trent University 2 Organo Therapeutics SARL - Queen Mary University of London - Revivocell Limited - Sheffield Hallam University 1 Total grants committed during the period Total grant expenditure Grants overspent / (written back) from prior periods	2025 2024 £ No. 14,500 - 22,476 - - 1 - 1 25,000 1 - 1 19,778 - 25,000 - 18,600 - 46,902 1 - 1 - 1 - 1 22,049 - 194,305 (19,992) 174,313	2024 £ - - 7,165 24,606 24,719 4,985 - - - 24,768 23,000 24,732 23,984 -
		157,959 (3,181)
		154,778

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2025

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	2025 £ 503,536 194,305 (290,003) (19,992) 387,846	2024 £ 626,378 157,959 (277,620) (3,181)
		503,536

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

Net movement in funds This is stated after charging:
	2025	2024
	£	£
Depreciation	4,386	4,188
Trustees' remuneration	Nil	Nil
Trustees' reimbursed expenses	480	204
Auditors' remuneration (excluding VAT):
Statutory audit	10,300	9,800
Other services	350	350

Trustees reimbursed expenses relate to travel costs for 2 trustees (2024: 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	2025 £ 743,914 74,023 13,416 831,353	2024 £ 670,898 66,289 11,995
		749,182

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

Two employees earned between £60,000 and £70,000 (2024: one), no employees earned between £70,000 and £80,000 during the year (2024: one) and one employee earned between £80,000 and £90,000 (2024: none).

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2025

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 £358,422 (2024: £379,225).

Average FTE and headcount:

Charitable activities Generating funds Support and governance Average FTE Average headcount	2025 No. 8.1 3.5 4.2 15.8 16.0	2024 No. 6.4 4.0 4.1
		14.5
		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 2024 Additions in year Disposals At 31 March 2025 Depreciation At 1 April 2024 Charge for the year Disposals At 31 March 2025 Net book value At 31 March 2025 At 31 March 2024	£ 25,692 5,900 (6,050) Computer equipment
	25,542
	20,620 4,386 (6,046)
	18,960
	6,582
	5,072

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2025

12. Investments

Market value At 1 April 2024 Additions in year At 31 March 2025	£ 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 2025 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 Other accrued income Prepayments Other debtors	2025 £ 11,391 740,539 2,850 40,007 117,948 912,735	2024 £ 157,676 853,886 3,918 14,027 -
		1,029,507

14. Current asset investments

Cash held in short term investments < 1 year	2025 £ 173,045	2024 £ 169,295

15. Creditors : amounts due within 1 year

Trade creditors Grants payable (note 7) Other taxation and social security Accruals Other creditors	2025 £ 35,924 337,178 20,927 36,685 4,185 434,899	2024 £ 23,229 399,816 18,563 18,305 3,902
		463,815

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2025

16. Creditors : amounts due after 1 year

Grants payable (note 7) 17. Analysis of net assets between funds £ Tangible fixed assets - Investments - Current assets 10,006 Current liabilities - Non current liabilities - Net assets at 31 March 2025 10,006 Prior period comparative £ Tangible fixed assets - Investments - Current assets 40,339 Current liabilities - Non current liabilities - Net assets at 31 March 2024 40,339 Restricted funds Restricted funds	Designated funds £ - - 280,000 - - 280,000 Designated funds £ - - 542,543 - - 542,543	2025 £ 50,668 £ 6,582 56,000 2,042,893 (434,899) (50,668) 1,619,908 £ 5,072 56,000 2,329,059 (463,815) (103,720) 1,822,596 General funds General funds	2024 £ 103,720
			Total funds £ 6,582 56,000 2,332,899 (434,899) (50,668)
			1,909,914
			Total funds £ 5,072 56,000 2,911,941 (463,815) (103,720)
			2,405,478

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2025

18. Movements in funds

Movements in funds
Restricted funds Alzheimer's ARC 2.0 ARC 2.1 Breast cancer Cancer Cancer research - Biddle COVID-19 Diabetes DILI Lifetime CDT Mini Hearts Mini Lungs MRC UKRI Grant - DJT Pound for a Hound The Underwood Trust Other restricted funds Total restricted funds Unrestricted funds Designated funds Grant making fund General funds Total funds The Robert Luff Foundation Total unrestricted funds	At 1 April 2024 £ - - - - - - - - - - - 11,629 1,462 2,248 - 25,000 -	Income £ £ 16,255 - 1,602 - 37,568 - 23,063 - 380 - 5,066 - 761 - 373 - 10,627 - 762 - - - 2,680 - 26 - - - 229 - - (25,000) 88 - 99,480 (25,000) - - 935,822 (1,505,866) 935,822 (1,505,866) 1,035,302 (1,530,866) Expenditure incl. extraordinary item	£ (16,255) (1,602) (37,568) (23,063) (380) (5,066) (761) (373) (10,627) (762) 10,000 (14,309) (1,261) (2,475) (229) - (82) (104,813) (262,543) 367,356 104,813 - Transfers between funds	£ - - - - - - - - - - 10,000 - 227 (227) - - 6 At 31 March 2025
	40,339			10,006
	542,543 1,822,596			280,000 1,619,908
	2,365,139			1,899,908
	2,405,478			1,909,914

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2025

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:

Alzheimer's	Research relating to the study of Alzheimer's.
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.
Breast cancer	Refers to funds donated specifically to support the study of breast cancer.
Cancer	Refers to funds donated specifically to support the study of cancer at Queen
	Mary University of London.
Cancer research -	Refers to funds donated specifically to support the study of cancer at Queen
Biddle	Mary University of London by Prof. Adrian Biddle.
COVID-19	Refers to funds donated specifically to support the study of Covid-19 at
	University of Exeter.
Diabetes	Refers to funds donated specifically to support the study of diabetes at
	University of Exeter.
DILI	Refers to funds donated specifically to support the study of drug induced liver
	injury.
Lifetime CDT	Funds donated specifically for research being performed at the lifETIME
	Centre for Doctoral Training.
The Robert Luff	Funding awarded for Innovation Pilot Studies.
Foundation
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.
Medical Research	Funding awarded by the Medical Research Council (MRC) to support early
Council grants	career researchers.

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2025

18. Movements in funds (continued)

Purposes of restricted funds (continued)

Pound for a Hound Refers to funds donated for the purpose of research into replacing the use of dogs in experiments.

The Underwood Trust Funding awarded for costs associated with new sub-brand, face to face engagement and dissemination of information and engagement with policymakers.

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 2025 is intended to cover new grant awards during the 2025-26 year, and continuation funding for certain existing projects when their current grants end.

Transfers between funds

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2025

18. Movements in funds (continued) Prior period comparative At 1 April 2023 £ Restricted funds Antibody database 23,250 ARC 2.0 - ARC 2.1 - Barratt legacy 840 Breast cancer - Cancer 528 COVID-19 - Diabetes - - Lifetime CDT - 2,248 Mini Hearts - Mini Lungs 227 Pound for a Hound 215 - Summer studentships - The Underwood Trust - Other restricted funds 160 Total restricted funds 27,468 Unrestricted funds Designated funds Grant making fund 557,516 General funds 1,694,888 2,252,404 Total funds 2,279,872 Innovation for All pilot grants Medical Research Council grants The Robert Luff Foundation Total unrestricted funds	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	£ - - - - - - - - - - - - - - - (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	£ - - - - - - - - - - - - - - - - - - - - (510) (510) (510) Gains / losses	At 31 March 2024 £ - - - - - - - - - - 2,248 11,629 1,462 - - - 25,000 -
	297,599				40,339
	- 1,147,524				542,543 1,822,596
	1,147,524				2,365,139
	1,445,123				2,405,478

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2025

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

Net movement in funds Adjustments for: Losses on investments Gain on disposal of fixed assets Dividends, interest and rents from investments Depreciation charges Decrease / (increase) in debtors Decrease in creditors Net cash used in operating activities	2025 £ (495,564) - (126) (22,701) 4,386 116,772 (81,968) (479,201)	2024 £ 125,606 510 - (20,747) 4,188 (97,839) (99,435)
		(87,717)

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.

Animal Free Research UK Ltd

Notes to the financial statements

For the year ended 31 March 2025

22. Related party transactions

During the year, 2 trustees made unconditional donations to the charity amounting to £1,498 (2023: £1,150 from 2 trustees).

There were no other related party transactions in the year.

23. Extraordinary item

During the year, the charity was subject to a bank fraud perpetrated by an external party in May 2024. The balance deemed to be irrecoverable is disclosed as an extraordinary item in the Statement of Financial Activities. A further £117,948 has been recovered in the post year end period and is included within other debtors at 31 March 2025 (note 13).

Misappropriated funds written off	2025 £ 56,931	2024 £ -