connections Recovery Connection5 and Subsidiary Company (Limited by Guarantee) Tru5tees' Report and Consolidated Financial Statements for the Year Ended 31 March 2025 ANDERSON BARROWCLIFF LIMITED Chartered A¢¢OLtntants Limited b Guarant tements d 31 March 2025 Page AdminisiratNe Details Report of the Trustees 2to7 Repor( of the IndependeniAuiJiiors 810 10 Statement of Financial A£tMoes Consoliéated Balance Sheet 12 Compariy Balan￿ Sheet 13 Cash Flow Statement 14 No￿5 to theAccoun15 15to27 Limited Guarantee Details 1 March 2025 COMPANY REGISTRATION NUMBER: 06545431 CHARITY REGISTRATION NiJMBER: 1147748 REGISTERED OFFICE.. Bedford House 1° Roor 112 Linthorpe Road Middlesbroijgh United ￿ng￿Orn TSI 2JR TRUSTEES= Ruth Hicks- Chairperson Oavid Barras Daniel Galloway Rachel Burke Sophie Turthn Matthew Bower- resigned 4August 2024 Di Dawd Patton- resigned l August 2024 Amy Oryden- appointed 30 April 2024 Cheryl Spear5- apy)inied l April 2025 CHIEF EXECUTIVE OFFICER= Dofoihy Smith BANKERS.. NaDonal Westminster Bank PIC 106 Linthorpe Road Middlesbrough Llni(ed Kingdorn T512JX AUDITORS.. Ander50n 8arrowcliff Limiied Chartered Accovntants 3 KingFisherCour( BowesFEld Park Stockion on Tees TS18 3EX Page 1 Recove and Subsidia ctlons Com an Re nded 31 March 20 The Trusiee5 presffii their report and financial statemenrs for the yearended 31 Marih 2025. The financial 5tatefflen15 have been prepared in accordanie with aimunting poliiEs set out in noie I to the financial 5tatement5 cofflply with Ihe chaTity5 governing ￿0￿Me￿l the Companies Aa 20C6 and "Accountin8 and Reporting by Charities." Statement of Recommended Prartice applicable to charffjies preparing tl*ir accounts in accordance ￿1th Ihe Financial Reporting stsndard applicable in the UKand Republic of Irelbnd (FR5 1021 leffectNe 1 january 20191-. OBIECFIVESAND A￿1VITIEs A5 part of a review of Ihe aTeas of delwery and re(ipien15 of Ihe clkiriws objeawe& an amendment was ma¢e In ottober 2018 by special resoluiion. ArEicle 4 was replaced ￿th.- To ￿lIeve Ihe suffering of indNiduals and families resident in the North of England. who suffer Frotn or are affeaed by.- a_ Substance misu* b. Isolatiorn c. Povetty.. d. Unernployrnent., e. offendin& f. Hotnele55ne$5". 8- Traumd h. Menial healEh issues or i_ Related complex needs by prowding peer-led rraining. support ancl assistènce. Provision of SeTrvices Recovery Conneaions offer a range of opporDJnities that ian help tr•Jild re(overy capital achieve lasting PD5itive ch3nge. The aim of our support is a150 to offer a range of opportuniiie5 10 develop comtnunity. build peer networks and incorporaie 5(ructure and purpose inio dailyrourine. Raisingthe profile of recoveryand challenging stgma is a keyaim of everything we do. Across Middlesbrough. Gateshead. Sunderlano. Darlington. Hartlepwl and Stockton our d3y-to4ay basis is foCu￿ed on helping to build recovery capitsl within indmduals and within the recovery community. We offer opportunities for people in recovery 10 help build their peer neiworks and community networks and to add purpose into their daily routine. We focus on individual strengths and have a'do with. rather than a'do forfapproach to supporc We havealso creatrd alljarKes￿Ith many orgarii5ations to further help build opportunities and paths into local communities. We achieve our mission through a range of e￿￿ence-baseO interventions sUp￿rtIng 1989 people iolleaively atEended 16445 structured groups and acbwtie> Our core proieus include- Recovery Support The Recovery Coaching programme helps indmduals nawg3te their way through their own journey of recovery and build recoverycapital to achieve tk*irown defined goals. We support all pathway5 10 reiovery in£luding hèrm reduciion. CL)mmunltyActlvlty Work We offer a wide range of 3Ciiwties and proEramrnes that aim to help people through their recovery. Ihe5e incluije. but are not Iimiied to. a Community Garden. Choir. Cookin& Sports AcrDiities, Gender Speiifii group& Yoga and Meditstion. Orienieering and a range of evidence based therapeulic psychosocial programmes. We coltsborate with community based groups and organisations to broaden s(Kial connection and neMrks_ EmploymÈntAdvlce We understand tharwor￿n8 towar(Js main life goals such asemployrnenl trainingor educaiion can be £hèllengin& and we offer advice and support to prepare the people for the onw3rd steps in their recovery pathway Ihrough the national progratnme IPS Ilndimdual Placement Support) and Colle8iare Rec(wery. TheAmba$sador Programme We belI￿e that providing the benefit of Inied experierKe and prcKJf that abstinence-based reiovery 15 Possible led us to create The Ambassador Programme. The Ambassador prograrn￿ is an opportuniry for anyone iri abstinence-based recovery to becoffle pari of Ihe contracted and 5ubcontraaed semces as a wsible recovery role model. The programrne includes a bespoke level 2 OCN accrediteLf qualificaiion that underpins the ro￿ of an Ambassador_ Across all projetts. we have uained 117 Ambassadors this￿Or. Page 2 nnection Com Gu Limlted of the Trust Year E Re ort Ma 2015 Volunteering As mernbers of the Recovery Connection5team. our￿lunreersget invofved in manyaspects of our work. Opporwnities include 5upporcing the running of aitivity and support groups. ro suprx)rting our administration and recepiiori teams. We sirongly believe volunieers add irllmen5e value to Recovery Conneaion5 atKI we welcorrE anyone who aligns with our values and wants 10 make a difference. M05t of our volunteers have accesse(l Recovery Connection5. and many 80 on to beiorne Ambassadors and work for the organisaiion. Across Lhe region we had volun￿erSand Ambassadors prowding in person supporr wntribulin89683 hours of support prowded equating to an in kind conirithtion 10 Ihe charityof £122.0(X>. Wewere re-assessed for Invesior5 in Volvnteers accreditation whichwesuccessfullyretained.Volunteers regularly progres5 ITIto paid employmeni wilh Recovery CoAne(tion% a le8acy which we are incredibty proLd of. We commenced ihe Investors in People asses5tnent pr¢xess and achieved Gold a[c￿￿1talI0n. We were wminated for and won Inve510r5 in People Third Sector Ernployer of the Year. Residential Rehab ReS￿entIal rehabilitation available foi people that ￿$h to cotnplete an iniense fvmonth ab51inence bas￿ pro8ramrne. The programme focuses on building recovery capitsl, (We also offer a Daity attendan￿ non-residential programmel Campus Recovery support in Teesside Unfversity. Middlesbrough College and Sunderland Unlverstty Recoveryshould be a reality foryoung people and we ¥wrk to rTh)bilise il%Mthin educaiional settin8s. We are leading the way in the developmerii of 5UPPOrt for students bmth addicn0T￿ in education in Tee￿de and have Ireared a pioneering campus recovery programme at Teesside University, Middlesbrough College and Sundedand Unweryty. In addirion to on campus support we have developed a univers￿ ReCOveryFrie￿J￿CampUS pledge. Recovery training and an online studeni focussed platform. Trauma Therapy Service (Funded by The National Lottery Community Fundl We employ tw0 5pecialisi staff deliverin8 (ro5￿SeNCe courLsellin& Peer-led Trautna SUPFX)rt education. bereavement groups and resilience prograrnmes. Employee Support Consultartry We have developed a model io support organi5aiiorbS be more informed around addiitson and rhe irnpact it can have on employees and the organisation_ Within thatwe have also developed a model of sUPP)rt for employees Ihai will prevent them from puitingtheir ernployTnent and employer at risk. Tfaining has been deliwered 10 S cotnpanies acr055 the Tees Valley. Training Building on the Employeesupporr packagewe have deveIoped.se￿ral CPO accrediiedtraining packages ère available to further our mission in reducing 51igma as9)ciared wirh addiction. We have trained 484 RecoveryAllies across Ihe region. We have trèined l 17 51aff and Ambassadors to delNe¥ training. Page 3 Recov ion om Guaraniee of the Tyurtees inc Year Ended 3 ACHIEVEMENTSAND PERFORMANCE Collaboration Across all four localitie5 we have t￿111. and continue 10 bJild. strong connertNity and working relationships with a range or partners from a broad range of sectors. This is a key element ofourwork to ensure thar rhe peop￿ wework with have access to a broad range of supporL These include, but are rM)i Iirniied to. the follow￿n8". Physical Wellbeing IPhysical Actmty prowiders Domestic Violence Servic A(Evocacy and Welfare Prowders Criminallusiice partner5 including Offender ManagementTeam5 and Pri￿n Substance Mistjse Tearns Health (Primaryand SeiorKlary Carel- GPS and Cornrnunity pharmacies15exual Health serviies l BBV Treatment and Care service5. We also aim to develop ctoser links with Primarycaie Networks and bwih our Integraied Care System Housing Providers and Homeles5 Serwiies Men(al Health Support- Support seTrices IMINDI / Aduli and Young Person5 Menial Health semces l Mental Health Tru5t.' In-patienvin reach. continuing 5upp)rt on ihe ward (principally in Middle5broughl Ernployment and Training- Job Cenire Plus Criminal justice - Probèiion Team joint-progress-working IPolice at every level, Trncluding informal daily contact and shared'street-level. understandingltrust Iprincipally in Middlesbroughl Mulual Aid- AlcoholicslNarcoiicgCocaine AAonymous. SMART. ￿)berFs￿s Children's and Adult Social Care School and Educaiiofj sen￿leS Children'5 and Families SeNices. Carers Services (Bronchesl Youth serwces Veier3ns15UPPOrt Women's. older peoples and a(fvow8roup51services As 3 Iwed experience recovery organisation ILEROI. the tyJilding of community is founded on principl& of trusc care, ernpaihy. inclusivity. respea and achievement_ lommunity Team5. Volunteers and Ambassadors represent 5ucie55 and lead by lived example. Investing in local social enterprises suih as Cafes and RorisL and projects such as Ihe Free Coffee Community Bike enables people u) posiiwetyconiribute and ensures thatweaiewsible and seen asa posilive forceacr055 Ihe wider community. This is allied LO a p051tive semce-perception as è trusied parttEr across Health, Mentsl Health. Social Care and Criminèllustiie. We are re8arded a5 a highly inrKJvaiNe and a8ile organ15ati0￿ our model has aNrarted interest from academia. and we are regularly inviied io speak at cortferences and ￿ents. People in recovery 3re drawn from all sections of sotiety and many people that we work wilh are Criminal jusfice system experienced, and are living with mental health condEtion& Imng ¥￿th neuro-diverse condition5 and disabilities. We support individuals to build their emotional resilience, develop copsng 5traiegies and to focus on building Iheir wellbeing. A key part of ourwork is buildirig iornmunityand a sense of belongirngand purpose- all of which reinforce resilience. true partners we have 5y5tematically built a shared w510￿ consistenr Tr3uma4riven understanding (Thas happened to- not ' Iswrongwith"). and seawnlessly irttegrated person-ienired care. Thi5 ctsre working drivesihe curreni Service and alreadyactively embraces wider provision liriclLKfin8 Housin& Dorne5tic Abuse and Welfare Support). A comrnon Care-Management-5ysiem facilitates shared-working and reduced duplic3rion. supponed by formal Informaiion-5haring shared best-pr3crice. protocols ènd rraininglinclucling Risklsafeguarding). Whilst our senrice and ioniracts are to delwer ¥oiiaf value and outcome% we go beyond this 10 ensure evewhing we do as an organisa¢ion has Maximum impact on the wellbeing ofthe comtnunities weserve. IrNesting and building in the fabric. capècity. and resilience of the local comFnunity beyond rhe'conifacf in order builtj community assets thai proffloie outcomes and help prevent and reduce dependenoyauoss all serwces. Recovery Connecrions only r￿entlY engaged with the Invesiors in People Awards. We have been awarded Silver Accreclitation- which isonty awarded to 20% of organi5atN)ns assessed by IIP. Page 4 ub idra Limited Re ort ofthe Impart feedback Community Coachi -Offered5UPPOrttource5smeniollrfulth ossessments.poreniingcw￿e$. athcoryJstspportwithsociolservice& ondhousins support. Well done. greotwoth "Deserves Glltheproisein rheworldondomossNepoyri5e.AcorirJgundwpportwepetsonwhofills Èverytrne with cortfidence (Fnd wonts Ihe be51loreveryone." Trauma Support (Therapy Sessions -Ir5 been lovely. wegot roknoweoth oiheruBdir wfj5g(K￿. IS￿￿10( off mychesL Iwouldhove contirttsedAf I hodny moved outolthe Gre(T.- "lom reolfygrotefvl,you've8otme r(Wkin8when nobodyelse hos. lftellike Icon iolerote5tuff nowwhich I couldnt be[oie.' -Amazing SLIPPOKL i[eellike I cun Iwe ondbreorheuguin undl d￿￿o[lee1 thot wbeforeiheropy. I con nowsee light at the endolihe tunnel.. IPS (Ind￿adual Placement and ￿p￿rtI". "Mynebvernploymenthos hodohtsgeimpocton rnyoverullwellbeingondsen5eo[job 50tisfo(tsfjn. lomexcitedtoget to work every day. which I hove ne￿r experienced belore" "Helpedwffh nav CV. opp￿￿￿8￿rWort getting CSC5 cord. ondsecuring employmenL 101705upport." -Extremelykind ondcoringsupport Icun Irecommendenough." 'Now lum in employmen( lom obleto enjoy1Afemore-[Inonc￿1￿OfidsOc￿1IY. lrgNe5mepr￿￿On￿ts0oStsrnySeI[-eSteem.. "AbsoluielyfontosticsupporL Mtsch oppreciored.- "Chonged meforever-lgof rhe ionfidence tostortlwiffd rylift ogom) ondfiinever[or8er tht7t- "Helped me into bvork syhith improvednymoodondreduceddrinking. IleeIhupp￿rand6QckQn myfeeL" 'Helped megetoport.iimejob ond 5LlPPOrted with emui15. Outsrunding5UPPQIZ' 'Grgut irnpucton mywellbeingond mentoihealth. 8&ngin wkhos br￿deA￿d MyhOr￿on5 ond incre05ed myconlidence.. Events.. "Reollyefijoyedmy5ellotthe Chnstmos event-iiwos the besreveT.- Social Enterprise In 2019 Recovery Conne(rioris formed another company Recovery Connections Enterprise Lid. as a wholty owned subsidiary of Ihe charity. four brand5 were developed to deliver on Ihe revised ffli55ion. iriyon. and values. The social businesses are iri Middlesbrough and exist primari￿t0.. Offer work experience. traintng and employmeni for people who have disenfranchised and are furthest away from the job markeL Provide affordable hospitality. floristry. and caiering to the Tee55tde cotnmunity. Provide a susrainable bUsi￿S model Ihai reduce5 food waste. carbon footprint3nd contributes to the Tees Valley Climate Change Siraiegy Challenge siigrna and raise awareness of recovery Ihrough h¥h Street s￿la1 busiresses. Generate incorne ro Mrther(JelNerthe chariryfflisswJn. RCE has an independenr Board of Direaors with board represeniation froTn Recovery cOnnect￿n￿ the CEO oversees the operations of both entiiies. The incltssion of the social enterprise 8roup ofbu5ines5es will enhance Ihe opwrDJnities available to beneficiaries. Employment and iraining opportunities are a challenge for people who have been away frorn the job market for len8thy periods. Opportunities to gain meaningful employrr*ntare particular￿ diffiiuli if YO￿ ha¥t a criminal record or no work history. We are proud ro provide a programme th3r offers robusr employability and experience thai positivety impacts self-esteem. confidence and resilience. FINANCIAL REVIEW The charity is eniirety reliaftt on income from Middlesbrough Council. IPS. Change. Grow. Live 5ubcontracL arrangements an several chariiable granis. We do noi raise funds through public gNin8 or fund-raising evenr Page 5 Recove Connertions and Subsidia Com in ludin Dirertors Re 1 March 2015 r Ended Rlsk Management The board oftru5tee5 recognise the 5ignificanigrowth over rhe prewous two year5and iriew fiJnl*r growth into new 3re3s, as a risk thai need5 10 be carefully monirored and supponed. The review of organisational risks is rewewed at the board meetings and quality assurance & clinical governance rneetings. The inclusion of a suitably qualified Finance Manager %Yill prowde a robust overgght ft)r Recovery Conne(iions and the social enterprise group of bus1r￿SseS. Reserves Policy The Trustees aim 10 maintain free ￿SeNe$ in Un￿tri￿ed funtjs at a t￿1 which equates io three month5 of uaresiritted charitable expenditure which amounts to approximatety E95.(W. The trusrees consider that this level will PToMde sufficient funds 10 respond to applications forgrants and ensure rhar suprort and governance cosis are Cove￿￿. Total funds held at yeèr end amouni to Él.S6179912024.. EI.121.735lofwhich £224.940 is unrestritted12024." £164.7951 and £1.337.859 is resiricted12024'. E956.9401. PLANS FOR FUTURE PERIODS The Trustees also Vrfish to diversify fiJnding by seekin8 support for and contracts for new seNices in Middlesbrough arid further afield based on Recovery Connection's reputation for providing led recoveryserrices. STRLICTLIRE. GOVERNANCE AND MANAGEMENT Recovery Connections is a regJsiered charity (Th) 11477481 and a limiied companylno 065454311. In 2008 the organi5ation was initiallyestablished asa CIC named Hope North Eastbypeopk In recoverffromdrugandloralcohol problem5 and wa5 rnanaged by three directors. In 2012 Hope North East W3s registered as a Charity. The organi5aiK)n rebrandeLf and changed its name to Recovery Connections following stakeholder consultation in 2016. The Charity retaiTr5 a sirong belief in the imwrtance of involving members of the recoverin8 communiry in V4Drk of the Or￿nISation J¥J is cotnmitted to alwa￿ have 85% of employees with lived experience. The Charity is governed by seven Trustees with relevani professional and Iwed experience. Trustees have powers to appoint further Trusiees and do so following advertisement ofvacancie& Training and induciion are offered to new Trusiees. TheTru5tees meet monthlyand keep the risks to if*Charityunder regularremew. AcomprehensNereportdetailingarioverview of the organisation financially and operaiionalty is covered ai each trx)ard meetin The Middlesbrough Recovery & Absiinence Conrract required the organisation to be a regisiered provider with Care Quality Cornrnission. The regulated aciwlies and wider registration requirements are setout in the Healih and SoiiBI Care Act 2008 afjd its a5$0ciated regulations. Follow￿n8 an unannounced inspection inlanuary 2019. a raiing of Out5tsnding was awarded by coc. We are the preferred sub-coniractor for Change Grow Live delniering recovery 5pe(ific intefventions and rehabilitation programmes in Gateshead, siockion, and Sunderland. We delivery Individual PlacemeniSupportllPSlacross Ihe South Tees. Stockton. Hardepool. Darlington and Sunderland localities. IPS offers person centre¢ support to people accessing tre3imenr fordrugs & alco￿1 ￿ return 10 employtneni. Key management Personnel rÈmunÈration The Trustees consider the Board of Trusiees and Ihe CEO as comprising the key ffianagement personnel of the Charity leading Ihe Sirategic Direction and controlling the charity. The CEO and Ihe Senior Management Tearn are responsible for running operaiing Ihe charity on a day-to-day basi> Al trus￿e$g￿e iheir lime freety and no trustee remuneration wa5 paid in the year. Trustees are required 10 diKlose all relevartt inierests and ￿gister them with the CEO. theywithdraw from any decisions rhar fflaypre5ent a conflict of Inter￿t. In setting rhe p8y ènd remuneration for the chariiys key managemenr persOrM￿l we ￿11 compare the $313ries to those or organisations similar 10 ourselve5. We do Ihis for noi only the kry rnanagetnent personnel bui for all staff. stsff pay increases are usual a ser percentage across a51 stsff. Page 6 R￿0Ve Connection and Subsidia includin DI r Ended 31 MaKh 2025 Re RESPONSIBILITIES OF MEMBERS OF THE BOARD OF TRUSTEES The Trustees Iwho are also dirertors of Recovery Connections forthe purposes of company lawl are respon51ble for preparin8 the Re￿rt of the Trustees and the financial siaternents in accordance ￿th applicable law and Uniied Kingdom Accounting siandèrds (United Kingdom Generally Accepied Accounting Practice) Tr￿lUdIng Finanaol Reporting Standard 102'The Financial Reporting Standard applicable in the UK and Republii of Ireland.- Cornpany law reqUI￿S Ihe Tru*ees io prepare finar￿131 stèrements for eath financkil year which gnie a true and faif wew of Ihe state of affairs of the charitsble company and of their iniotning resource5 and application of resources. including Ihe income and expenditure, for th3[ pericd. In preparing Ihe5e financkil sra(ements. the Trusiees are required io.. select suitable accounting policies and then applythem consistently. observe the method5 and principles in Ihe Charities SORP IFRS 1021 rnake judgements and accounting esiitnates thai are reasonableand prudenr state whether applicable UK ACcoUn￿n8 S13ndards IFRS 1021 have been followed. subjert to any material departures disclosed and explained in the financial sratements.. prepare the financkil staiemens on the 80ing concern ba95 ur￿e$S it is inappropriate to presume ihai the charitable companywill continue in oper31ion. The Trustees are responsible for keep¢ng adequate accounting records that are sufficieni to show explain the charitable company's transactK)n5 and di5c105e wilh iea50nable accuracy al any time rhe financial position of the charitable company and enable them to ensure that the finaniial statemenis compty Trmth the Companies Aa 2(Q6. They are also responsible for safeguarding Ihe assets of the charitsble COTnpany and hence for rakin8 reasonable 51eps for the preVent￿n and detection of fraud and oiher irregulari(ie5. STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS We. Ihe direaor5 of Ihe cornpany who held office at the dare of approval of these Firkincial stsiemenrs as sei out atove. ea(h confirrn so far a5 we are awa￿. that". there 15 no relevant audit informaiK)n of which the cofflpanys auditor5 are Unawa￿ an¢Y we have taken all Ihe steps that we ought to have iaken as directors 10 fflake ourse￿e$ aware of any relevant audit inforrnation and to esiablish Ihatlhe companys auditsjrs are aware of thai inforNotyon. TRUSTEE STATEMENT In 5ettingourobjectNes and planningouf actiwtiesthe Trusoes havegwen carefulgurdarKe to Charity Commission on public benefit. This report ha5 been prepare(l in accorda￿e with the special provisK)n of Pan 15 of tIE Companies Act 2006 re13ting to 5tnall iompanies. The Report of the Trusiees Wa5appToved bythe Board of Tnjstees on....... signed on its behalf ty. Trustee Rurh Hicks Page 7 Re ort of ndentAuilitors to the Membe cov Connection and SubsidiarwCLp Opinion We have audited the financial ststements of Recovery ConneaioThs IthÈ'pareni charitable compan￿1 and its SU￿ld13ry Iihe 'groupl for Ihe year ended 31 March 2025 which comprise the cons01idaied Staiemeni of Financial Activitie5. Ihe group and parent charitable comp3ny Balance Shee1& rhe cong)lidaied Cash Now Staietneni and Notes 10 the Finaniiol Statements. including a summary of significan( accouniing polic￿S. The financial reportityg framework thai ha5 been applied in their preparation Is 3pplicable law and Unite(l Kingdom Accounting StandaTd% including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland- (United ￿ngdOrn Generalty Accepted Accounring In our opinion the financial st3temerit&- give a true and fair view of the state of (he group and parent c￿aritable companls 3ffairs as at 31 March 202S. and of the group's incoming resources and applicauon of resouries. including its income and expenditure for the year then end&d-. have been prOpe￿Y prepare(l in accordance United ￿ngdoM Generally Accepted Accouniing Prattice, including Financial ReporDng Siandard 102 The Financial Reporting StsrKlard applic3ble in the UKand Republic of Ireland.: and have been prepareLI in accordance with the requirements of CompaniesAct2(K)6. Basis for opinlon We coryjucted our audit in accordance Internatsonal Sthndard5 on Audiring IUKI IISAS (UK)) and applicable law. Our responsibilities under fhose stsndard5 are further described in Ihe Audiiofs re5p)nsibilibes for the audit of Ihe financial statements section of our report. We are independeni of the Group and Paient chariiable company in accordance with the ethical requirements that are relevant ro our audit of ihe financial Statements in (he UK including the FRC'5 Eihical Standard, and we have fulfilled our oiherethical responsibiliriesin aciordancewiih ihese reouiremenrs. We believe that the audit evidenie we have obtained is sufficieni appropriate ro prowiije a ba515 for our opinion_ Con£luslons relating to going ¢on¢ern In audiLing the financial sta(ernents. we have concluded that the trustees, use of the 80ing ioncern basis of accounting in rhe preparauon of the financial statements is appropriate. Based on the work we have performed. we have not i(Seniified any material urKertainiies relating 10 events or condiiion5 IhoL indiwduallyor colleaively. maycast significantijoubion thegroup'sor parentcharitable compatys abilityto continue as a going concern for Ihe period of at least monrhsfrom when the financial ststements are authorised for issue. OLJr responsibilities and the resrKJnsibilities of the Irustees with ￿SpeC[ to going concern afe describe¢ in the relevant 5ettions of this reporL other information Thetru51ees are responsible for the other informaiion. other informèrion comprises (he inforTnation included in the Rewn of Trustees. Other than the financial sraternen15 and oui Rep)rt of the Independent Auditor5 thereon. Our Dpinion on Ihe financial statements does noi cover the ot￿r informal￿ft and. except to the extent otherwise explicidy stated in our report. we do no¢ express arry form of assurance conclusion thereon. In connection with our audit of rhe finantkil 5taternents our resg)n9bÈlity is ro read the other information 2nd. in doing so. consider whether Ihe other information is rnateriolty inconsisient with the financial ststernerTrt5 or our knowledge obtained i the 8udit or othen￿lSe appears to be rnaterialty mi5S1atetJ. If we idefirify such rnaierial inconsistencies or apparent rn31erial misstatements. we are ￿QuIred to deiermine wheiher IhiR gNes rise to 3 material fflis51atement in ihe financial statetnents themsek¢e& If. based on the ¥york we have perfortlled we conclude thai Ihere 15 a tnaieiial misststement of this other Information. We have nothingto report in this regard. Matters on which we are requlred to report by exception We have nothing to report in respect of Ihe followirig ffl3rters vthere the Ch3riDes IAciount5 and Reports) Regularions 2008 requires us to reFOrt to you if. in our opinion=. the Information given in Ihe Report of the Trustees is inconsi5teni in any material respectwith Ihe financial statements,. or the charitable company ha5 noi kepi adequate accouniing records.. or the financial statemenrs are not in agreemeni %￿th Ihe accounting records and reiurns or e have not received all the information and explanations we require for oui audiL Page 8 ort of the Inde ndèn Recove ConnertiOll5 an Responsibilities of trustees A5 explained rnore fully in Lhe 5tsremenr of Trustees. ResrM)nsibilitie% Ihe Trusiees are also direaors of the chariiable company forthe purposes ofcompany lawl are reSpon￿bIefor rhe prepar3tion ofthefinancial statements and for beingsatisfied Ihat theygive a trueand fairwew. and for such iniernèl control asihe Trustees determine is necessary to enable the prepar21ion of financial statements that are free from material [niS￿aleMe0L whether due 10 fraud or error. In preparing the financial statements the tyustees a￿ respongble for as5e$5ing ihe group's and parent chariiable cofflpanls ability to coniinue as a going concern. disclosin& as appiiGible. matters Telare(J 10 going contern ancl using the going concern basis of accouniing unless the trustees eiiher intend ￿ liquirjate the group or the parent charitable company or to cease operations. or have no realistic aliernètive but to th) so. Our responsibllitles for the audit of the financial statements We have been appoinied as audiiors under Section 151 of Ihe Chariiies Act 2011 and report in accordance wth the Act and relevant regulations made or having effect thereunder. Our obje(tive5 are to obtain reasonable 3sstJrance about hvherher the financial s(atements as a whole are free from ma(erial misstatement. wheiher due to fraud or error. and to issue a Report of IndeperKfjent Auditors thar includes our opinion. Reasonable assurance 15 a high level oFas5urance. bur is not a guarantee that an audit conduaed in aciordance with ISAS IUKI will always detett a material Tnisstaiement when it exists. misstale￿nts can arise from fraud or error and are considered material if, individuallyor in iheay£regaie.theycould reaSonab￿be expecred ro influencetheeconomic decisions of users taken on basis of these finarK411 siatemen Irregularities. Including fraud, are insrances of norpcompliance wih law5anLI regulatlOn5. We design procedure5 in line with our responsibilitie5, ourlined 3bove, to Oeiea material misstatements in respectof irregular￿leS. iniludingfraud. Theexteni 10 whiih our procedures are capable of deteciing irregvlaribe% I￿lUding fraud is detsiled below. Based on our under5tandin8 ofthe charity, we have considered applicable laws and ￿gUlationS which may be fundatnental to the charity'5 ability 10 operate or 10 avoid è material penalty, and we considered theextent to which non-compliance might have a material effecL on the financial statements. We conside￿¢ management's incentives and opporcunities for fraudulent m3nipuiition of Ihe financi815tarements (including rhe risk of override of conirolsl. and determined thai the principal risks were related to the posling of inappropriate manual joumal entries 10 manipulaie finarKial performance, management bias in significant accounting estimaies and any significanr one-off or unusual iransaciion> We discussed among the audit engagefftnt team the opportunities aThJ incentives that may extst within the organisatitsn for fraud and how arid where fraud might occur in Ihe financkil staiement& Audltor$' responsibilities for the audit of the financial statements Icontinuedl Audit procedures perforffled by the engagemeni ream sncluded.. Enquiry of management and Ihose charged with 8overn3nce around actyal and potential litigation and claims. Enquiry of entity staff io identifyany in5tsnces ofnon-compliance and reguktiors. Reviewing rninute5 of meetirigs ofthose charged wilh governance. Reviewing financial 5taiement disclosures and tesiing 10 supportingd(KumeNatioA to assess compliance ￿th applicable regulaiion5. Audiiifjg Ihe risk of rnanagement override of controls irKluding through testing journal entries and other adjustments for appropriaiene55. and evaluaiing the business raiionale of significanttransactions outside the normal course of business. Challenging esiimate5 and judgemenrs made by management in their significant accountsng estimates. Revenue reiogniiion.. agreeing a sample of revenue rransaaiorG to gain ￿Uran￿ over the occurrence acoJracy of revenue and a150 10 ensure revenue has been recognised Fn thecorre(t period. Because of the inherent lifflitatioris of an audiL there is a risk fhat we will not detect all irregularities, including those leading to a material fflis51atefflent in the financial sratements or Th0￿ComplIance %￿th re8ulation_ The risk increase5 the Tnore that ompli3nce wilh a law or regularion Is removed from the evenisand transattions reflecied in the financial staieTDent5. a5 we will be les5 likely to becorne aware of instsnces of nonnsibilit￿sfortheaUdit of the finanoal 51aietnents i51ocatedon IhE Financial Reportingcouncil's web51te 8[ wNw.frc.org.uklauditorsrespongbilities. This description fortns Partof our Report of the Independent Audiiors. Page 9 Inde endent Auditois to the M mb and Subsidi om Use of our reptsrt This report Is made solety to the charitable compaws tnemter& a5 a body. in aicordance wilh Part 4 ofthe Charities (Accounis and Reports) Regulations 2008. Our audit work ha5 been undertaken so thai we mighi State to the ch8ritable companys ernber5 Ihose matters we 3re required to S13le to them in an auditorfs repot( and for no oitrEr purpose. To the fullest exteni permiiied by law. we do not accepi or assume responsibility to anyone oiher Ihan the chariiable COTnpany and Ihe charitable compan￿$ members as a body. for our au worl for ihis reporL or for the opinions we have formed_ -lJ_- 4__1( For & on behalf ofAnderson Barrowcliff Limited StaturoryAudiiors Chartered Accountants Eligible to act a5 an auditor in ierm5 of Secuon 1212 of the CompaniesAci 2(M)6 3 Kingfisher Court Bowesfield Park Siockron on Tees TS183EX Date". Page 10 Recove Connections and&y￿sId13 Com Lirni Con lida ment of Financial A ludin income aml ex ndituré f r the Year Ended 31 March Note Income Oonaiions & leg3cies 6.651 47,725 148,384 1.029 661 7312 4538.735 4586.460 148J84 1.029 3.IYJ8 45.755 146.534 991 2.163 3.054.353 5.261 3.100.128 146.534 991 Other Irading actwiiies Investmeni income Total Income 203.789 4539.396 4.743.185 J96.398 3.056.516 3.252.914 Expenditure: ising funds 381.447 381.447 286.31 S 286,315 Charitable actimties 379.294 3.541.380 3.920.674 297371 1603.046 1900.417 Total re50urce5 expended 760,741 3,541.380 4.302,121 583.686 2.603.046 3.186.732 NeUout8olngllin¢0mlng Resources before tran5fer5 1556.9521 99&016 441. 1387.2881 453.470 66.182 Gross Iransfers between funds 20 617.097 1617.09n 382.202 1382.2021 Net movement In fvnds 60.145 380.919 441.1)64 15.0861 71.268 66.182 Funds brought forward l April 2024 164.795 956.940 1.121.735 169.881 885.672 1,055,553 Funds carried forward 31 March 2025 20 224.940 1.337.859 156IPJ9 164.795 956.940 1.121.735 The noies on pages IS to 27 fortn an integral part of ttrEse financial sraterr*nts Pagell Company No.. 06545431 Recove Con d Subsidia ited Ions Com Guaran Consolld ch 2025 2025 2024 Notes Fixed Assets Tangible assets 12 57.039 57.544 Current Assets Stock5 Debtors Cash at bank & in hand 1.179 918.154 1255.519 1.248 729,766 588.588 1174.852 1.319.602 Creditor5'. Amount5 falling due within one year 1567,5941 1237.4011 Net Current Assets 1.607.258 1.082.201 Total assets less turrent IlalMIItiÈs 1.664.297 1,139,745 Creditors.. Amounts falling due after more than one year 17 1101.4981 118,0101 Net Assets I￿1799 1.121.735 Incorne Funds Resiricted funds Unrestricted funds 20 20 1337.859 224.940 956.940 164.79S 1J61799 1.121.735 TheTrustee5 consider that the company is entiiled to exemsxion from the requirement 10 have anaudii under the provisions of section 477 of the CompariiLS Act 2006 Iihe-Acn and members have not required the companyto obtain an audii for Ihe year in question in accordance wih section 476 of ihe Act. HOWe￿r, an audit i% required in accordance wih seaion 151 of the Charitie5 Aci 2011. The Iru5tees acknowledge their resFK)nsibilities for ensuring that the charitable company keeps accounitng records that compty wth Sections 386 and 387 of Ihe Companie5 Act 2006 and preparing financièl 513temeniswhich givea rrue and fairwewof the state of affair5 orthe charitable comparry a5 at Ihe end of each financial year and of irs svrplus or deficit for each financial year in aicordance with the requiretnenis of Sections 394 8nd 395 and which OlheThwse comply with the requirements of the Companies Act 2006 relating to financial staiements. so far as applicable io the charitable c(tmpany. Ibl These accounts have been prepared in accordance ￿1h the special provision in Part 15 of the Companies ACL 2006 relating io small comp8nies. The financial statements were approved by theTrustees on_--...----- and signe,6481 Net Current Assets 1.613.224 1.117.876 Total assets less current liabilities 1.640.167 1.130.874 Creditors'.Amounts fallingdue after more than one year 17 186AODI NetAssets 1.553.367 1.130.874 Restricted funds Unrestricted funds 20 20 1.337,859 215.508 956.940 173.934 1.531367 1.130.874 TheTrustees consider thar the company is entttled 10 exemkxion from the requirement EO have an audit under the provisions of section 477 of the compani￿ Art 2LK16 Ithe"Acn and members have not requi￿￿ the compaty to obtain an audit for the year in question in accordance with section 476 of Aa. However. an audti is required in accordance with secrion 151 of the CharitiesAct 2011. The Irustees acknowledge fheir responsibilities for ensuring that the charitable company keeps accounting records that compty with Sections 386 and 387 OF the Companie5Act 2LK16 and preparing financial staiements which gNea true and fairview ofthe state of affairs of the charitable company as at the end of each financial year an(1 of its surplus or deficit for e￿h financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply wilh Ihe iequiretnent5 of the Cornpanie5 Act 2006 relating to financial statements. so for as applicableto Ihe C￿￿n[able company. These accounts have been prepared in accordance wth the special prowsion in Part 15 of the Companies Art 2006 relating to small companies. The financial statements were approved by the Trustees on............. and signed on their behalf ty.. Ruth Hick5 Trustee The noies on pages 15 to 27 form an integral part of Ihese financial statemenrs Page13 ettio Limi uaran Consolidated Cash Flow Statement for the Year Ended 31 March ZO 2025 2024 Cash IIow5 from operating activities Cash generated Frotn operaiion5 26 584.491 1203.3B61 Investlng artlwtles Purchase of tangl￿e fixed assets 12 125.8661 110.5141 I￿,866) 110,5141 Financing activities Loans advanced Loan repayments 124.OLKI 115.6941 13.1821 Net cash 8enerated fromllused Inl ftnanci activities 108.306 13.1821 Net increase in cash and cash equivalents 666.931 1217,0821 Cash and cash equivalenis ai beginningof year 805,670 Cash and cash equivalents at end of year 1.255.519 588.588 Page 14 Recove Connertion and Subsidia Com mited b Guarantee Note5 to th A ACCOUNTING POLICIES Charity Information Recovery Connection5 15 a prwate cotnpany lirniied by guarantee IncorF>oraied In England & Wales. The regisiered office is given In the group informaiion on page 1 tsf these financial 5taiemen£5. The naiure of ihegroup'5 operaiions and its pnncipèl activities are sei out in the Report ofthe Trustees on page 2. Basis of Preparation The charity ionsiiiutes a public benefii enrity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charirie& Stèietneni of Recommended Practice applicable to charitie5 preparing Iheir account5 in èicordan(e with the Finanoal Reporting Siandard applicable in the UK and Republic of Ireland IFRS 1021 issued in Oc(ober 2019. Ihe Financial ReporLing standard applicable in the Unl￿d Kingdom and Republic of Ireland IFRS 1021. the Charitie5 Aa 2011. the Companies Acr 2(K>6and uKGenerallyAC￿pteo Practice as ff applie5 from 1 january 2019. The finarKial sta￿MentS are prepared on a going concem basis uThfjer the historical cosi convenrion. The financial 5raternenr5arepresentrd in sterlingwhich is the functional iurrency of Ihe Iharityand rounded to the nearest £. The financial ststements COn501ida(e tlE re5u115 of the Iharity atKI 115 wholty owned subsidiary. Recovery Connections Enrerprises Limited oft 3 line by lir* ba515. Tran5aciion5 and balances between Ihe chariiable company and its subsidiary have been elitninaied frotn the con501iOaied financial 5tatefflen15. Balance5 between Ihetwo comp3nies3re disck)sed in thenotesofthecharitableiompaWs balance sheet. A5eparate Staiemeni of financial actiwties. or income and expenditure account for the charitsble company iEself is not presented because the compary has taken advants8e of the exemptions afforded by settion 408 of the Companies Acr 2(K)6. The 5ignificant8ccountin8 policies applied in Ihe preparatlon ofthese financial starementsare setout below. These policies have been Consisteni￿appIIed to all years presented unless otherwise stated_ Going concern The financial statements have been prepared on a going concem basis as the trustees believe that no fflaierial uncertainties exist. The rrustees have consTdered the level of funds hel¢ and the expected level of income and expendifure for 12 months from authorising ihese financial staiements. The budgeted income and expenditure is surricient the level of reserves for the charity to be able to continue as a 80ing concern. Charitable funds Unfestricted funds are available for Ltse at Ihe discreiion of the trustees in furtheranie of their charitable objeciwes. Restricted funds are funds Y4hich are to be used in aCcordance￿th specific resirirtions Imposed by donors or which have been raised by rhe charity for particular purwses. The cost of raising and administering such funds are charged against Ihe specific fund. The aim and use of each restricied fund is set out in the notes 10 ihe financial statements. Page15 Limi uaran Accovnts for theyear Ended 31 Illar(h 2025 ACCOUNTING POLICIES- contlnu Incorne All incoming resources are included in the Statement of FinarKo1 ActDrities ISOFAI when ihe charity is legally entitled to rhe incoTne after any perforrnance condirions have been meL rhe amotsni can be measured reliably. and it is probable thai the irKornewill te recen￿. Cash donations3￿reCOgnised on receipt. OtherdonaDonsare recogni5ed oncethe charityhas been notified of the donaiiorn unless performance conditions require deferral of the arnouni. Incoffie tax recoverable in relaiion 10 donations receNed under Gift ordeeds of covenant i% reco8nised at the tirne of the donation. Revenue from the sale of good5 15 recognised when the sgnificant risks antfj re%Y3rds of ownership of the goods have passed to (he buyer Iu5ualty on di5￿[ch ofihe goodsL the amotsnt of revenue can be measured reliably. 11 is probable rhai Ihe eior¥)mic berEfits a5sociaied with the transaction wll flow to the entity and rhe costs incurred or to be incurred in respect of the transaction can be measured reliably. No amount is included in the financial Statements for voluntrer utne in line with theSORP IFRS 1021. Further detail isgiven in the notes to theaccounts. The gran15 are rKognised usirffd the accrual mdel. There is ￿ netting off of exp￿d1[Ure within the accounts. Expenditure All expenditure is accounted for on an accwals basis and ha5 been classified under headings that aggregate all costs related to the category. ExpefKliture is recogni5ed wlEre there 15 8 legal or constructive obligation 10 make payments 10 Ihird par(ies. i(15 probable (hai Ihe settletnent will be required. and rhe amount of the obligatioft can be measure£l relkibly. Experditure is clas9fied underthe loll(NYing headifES-.- Charitable expenditure Support cosis ir*lvde back office co515. finance. persorinel. payroll and goverrorKe COSL Governancec0515 are rhose incurred in connection wth coffipliancewiih con5tituiionèl and statutory requirement> Tangible Fixed Assets T4ngible fixed asse15 are initially measured ai cost and subsequenity measured at Cost or valuation. nei of depreciation and any rmpairment losses. Depreciation is recognised so a5 ro wriTr off ihe c05[ or valuaiion of as5e15 les5 their residuèl values over their useful Iweson the following ba515.-- Leasehold improvemenrs Plant & machinery Fixtures & fittings Office eouipment Moiorvehicles 10% SEraight litE 20% siraighi line 25% 5traighi line 33% siraighi line 20125% 51raighi line Page16 Limited b Guarant r the Year Ended 31 March 2025 ACCOUNTING POLICIES- continuÈd Investments Fixed asset invesiments are valued atlosl. This represenrs the investme¢)t in the 100% subsi¢Yi3ry_ Stocks Stocks are stated at the lower of c05t and its nei realisablevalue. Cash and Cash E4uivalents Cash ai bank and In hand Incl￿deS cash and th)rt trrm hghty liquid invesrmens ￿th a s￿rt maturity of one year or less from the dale of ￿quIsition or openTng of the deposif orsimilar account 1.10 Debtors and Creditors ReceivablelPayableWithin One Year Debtors and crediior5wiih no 5taied interes1 raie and receivable or payable within one year are Tecorded ai Iransaction price. Any losses arising from impairmeni are recognised in expenditure. Pension Costs The company operates a definedcontributionpensionschemefor all employees. Thecomparty contributions are charged to the SOFA in the peri￿￿ to which thry relare. 1.12 Taxation The charity is exempi from corporation tax on its charitsble acuwue5. 1.13 Operating Lease5 Renrals payable under operatirE leases are ￿￿[ge￿ 10 the SOFA on a siraight-line basis over the period of the lease. 1.14 Judgements and Key Sources of Estirnation Uncertainty In ihe application of the charitable companls aicouniing policie& which are Lle5cribed above. the Trustee5 are required to make Juégements. estimaies and assumptions abou( the carrying atnour115 of assets and liabililies that are not readity apparent frotn oiher sources. The ￿E1[￿aleS and a550ciaied assumption5 are based on historical experienceand oiher faaors Ihai are considered 10 be relevant. Aaual results may differ from these estimates. The esiimates and Under￿n8 assvmpiions are rwewed tsn an ongoing basis. Revi5iOnS 10 accounting estimates are recognised in Ihe period inwhich Ihe e￿Irnate 15 rew*d iFthe rew5ion affec15 only Ihai period. or in the period of Ihe rew5ion and fijiure pEriods if Ihe rewsion affec15 boih current and future periods. Pa8e17 Limited b Guarant ovn s for theyear Ended 31 March 2025 DONATIONS AND LEGACIES Unrestrlrted Funds 2025 Restrlcted Ftsnds 2025 Llnrestricted Funds 2024 Total 2025 Donations and gifis 6.651 661 7312 5.261 6,651 661 7.312 5.261 INCOME FROM CHARITABLE ACTIVITIES Unrestricted Ftsnds 2025 Restricted Fund5 Ttstal 2025 Total 2024 2025 Supported hou&ng Recovery Service ProjeciAdder HoLEing project IPS employment serwce5 Other grants and 5erwice coniratts 61015 3.314.838 147.680 638.473 375.729 61015 3.314,838 147,680 638.473 423.454 79.123 2.169.376 14ZOOO 564.282 145.407 47.725 47.725 4.$38.735 4386.460 3.100.128 OTHER TRADING ACTivmES Unrestricted Funds 2025 Unrestricted Funds 2024 Income from trading subsiltiary 148.384 146.534 Income above is broken down a5 foll 2025 2024 Sales of goods and services Hendon grant Capital grant released Other sundry donations 143.394 101.404 40.000 4.890 240 100 148.384 T46.534 INVESTMENT INCOME Unrestricted funds 202S Unresiricted Funds 2024 Bank inteie51 recewed 1.029 991 1.029 991 Pa8e18 Limlted Guaranl Notes io the A counts for the Year Ended 31 March 2 RAISING FUNDS Unresiricted Funds 2025 Unrestricted Fund5 2024 Staff cost5 Oirectand orher supFK)rt costs 201274 179.173 140.301 146,014 381.447 286.315 Trading costs 381.447 286.315 EXPENDITURE ON CHARITABLE AcfiviTIES Fund Direct costs Staff costs Staff and volunieer travel se￿ice user cost5 Alloiment cos[5 Everii cosis Vehicle c05t5 Publicity Con5ultanoy Programme and licence Healthcare and monitoring Building cost 36.190 2510 217 1857.635 35.205 65.795 11.935 21.583 9.794 1&042 29.079 16.573 19.963 23.472 1893.825 37.715 66.012 11.935 38.106 8.754 1.470 2.063.434 30.026 62.318 2.231 2.620 5.885 15.346 5.210 7.095 9.499 2.101.540 38.780 63.788 2,231 4.445 12,962 7,995 6.247 8.723 10,576 90,000 10.903 28.798 1.478 245 1.825 7.077 17.3511 1.037 1,628 1,077 38.592 19.520 29324 16.573 3572 23.472 Totals 83.913 3.109.076 3.191989 53,623 2.293,664 2,347,287 Support costs Staff costs Depreciaiion Computer running cosis Cleaning and sundry expenses DBS check Insurance Traifjing Light & heat Telephone pps Repairs Recruiiment costs Rent & rates Bank charges L03n inieresl Irrecoverable VAT Governance cosis 194.655 194.655 11.920 46.972 41.191 5.974 38.859 81.891 28.667 17.663 3.746 68.913 853 105.733 4.758 167.8CK 16.309 8.200 24.626 53.839 2.739 27.889 47.829 22.259 12.339 3.982 12.988 570 70.521 184.109 8.200 26,067 54.901 3,183 41.626 49.170 22,259 13.498 4,070 12.988 961 70,527 1,257 11.920 39.906 38.076 4.710 33.536 79.573 28.667 15.135 3.115 1.264 5323 2.318 1.062 13.737 1.341 1528 1.159 574 391 105.733 4.642 1.257 28.492 26.536 28.492 31.828 22.215 1859 25.074 5.292 295.381 431304 727.685 243.748 309.382 553.130 379.294 541. 3.920.674 297.371 2.603.046 2.900.417 Page19 Recove Connertions and Subsidia Com Limited b Guarantee rEn GOVENANCE cosrs Accountancy Audit Legal fees 7,455 11500 1260 7A55 115 5.119 6.631 10.500 9.405 6,631 10,500 9.405 1859 5.292 22.215 2A59 25.074 26.536 5.292 31.828 NEf INCOME FOR THE YEAR 2024 Thi5 is siaied after charging'.- Depreciaiion Auditors. remuneraiion- foi audit - foraicountsncy 26.371 10.500 4.625 23.333 10.500 2.625 10 TRusfEES No rrusiee recerved any remunerabon or expenses during ihe period12024- ENill. No trustee or other person related ro Ihe charity had any personal inrerest in any other conrracts or tranwtions entered into by the Iharity during the period12024.' £NIll. EMPLOYEES 2025 Number 2024 Number The avera8e rnonthty numberofempkjyees during rhe year was 98 Employment costs 2025 2024 Wa8es and salaries Social security COsr5 Other pension costs 3.013.417 255.571 53.773 1191.082 192.865 40.230 3321761 2.424.177 The number of employeeswhose total emoluments (excluding employer pension cosisl for Ihe reporting period in the following bands wa5.. 2025 2024 Nufflber number £60.(J)0 10 £70.OtK) p.a. Page 20 Conrtertion Limit GuarantÈÈ Notes to the Accounts for 12 TANGIBLE FIXED ASSEIS CONSOLIDATED Cost At l April 2024 Addityons 31.944 4.800 39.438 40,784 21.066 49.235 184.624 25,866 At 31 March 2025 36.744 61.850 49.235 210.490 Depreciation and impairn*nt At 1 April 2024 Depreciation charged in year 10.679 4.035 16.646 1638 35.1 17Tr1 29,532 10.198 35.068 6.800 127,080 26,371 At 31 March 2025 14.714 19.284 37.855 39.no 41.868 153.451 Carrying arnount At31 March 2025 U030 3.939 21120 7.367 .039 At 31 March 2024 21.265 6.577 4.283 11.252 13.807 57.544 CHARITY Cort At l April 2024 Additions 1.061 4.800 8.034 31.062 38.875 21,066 15.235 94.267 25.866 At31 March 2025 5.861 8,034 31.062 59.941 15.235 120,133 Deprecfjation and irnpairment At 1 April 2024 Depreiiation charged in year 615 947 4034 27.943 9.878 15.235 81.270 11.921 At 31 March 2025 1.562 8.034 30.539 37.821 15,235 93.191 Carryqng arnount At 31 March 2025 523 Zl120 26,942 At 31 March 2024 .619 10.932 12.997 Page 21 Recove Connections and Subsidia Com (Limi¢ed b￿Quarant<2) est heAc oun rEnd rch 20 SUBSIDIARIES These financial 5tatetnenrs are separate financial ￿aleMents for Recovery Connection5. Details of Ihe chariLI5 5ubsidiarie5 ai 31 March 202S are as follo￿5..- Rewstered Office Nature of Business Class of Held Shares held Direculndirect Name of Undertakin8 Recovery ConnecLions Enterprise Lirnited UK Restsurants. event space and fl0ri5L IoD.00 Recoveryconnections Enterprise Limitedlcompanynumber 72079629)was incorporated on 2luly2019 2nd ￿ 2 whol owned subsidiary of Recovery ConnertKJns ￿mIted. Asummary of the results of the subsidiary are shown below... 2025 2024 Turnover Cost of sales 330.681 12916121 203.912 1206.3311 Gross Ilossvprofit Administratwe expenses Other operating Income Interesr payable and smilar expenses 38,069 188.3391 4,990 14961 12.4191 179,4411 45,130 15431 L05s for the financial year 145,7761 137.2731 The ag8regare of the assers liabiliries and fundswas.-- Assets 65.550 1350,5291 114.6981 65,051 1280,4371 Non-current liabilitie5 1299.677) 1253.9011 Called up share capital Profit & loss reserves 1299.678} 1253.9021 1299.677) 1253.9011 14 STOCKS CONSOLIDATED 2025 2025 Finished goods and goods for resale 1.179 1,248 CHARITY 2025 2024 Finished good5 andgood5 for resale Page 22 e(ove Connections Limited GuarantÈ tes to the Accounts for the Year End 31 Mar h202 15 DEBTORS CONSOLIDATED 2025 2024 Amounts falllng due within one year. Trade debrors VAT Other debtors Prepayments and accrued income 781.063 9.930 29.740 97.421 586,703 3.634 23.881 115.548 918,154 729.766 CHARITY 2025 2024 Amounts falling duewlthln tsneyear. Trade debior5 Amounts owed by subsidiary undertakings VAT 779.305 580.587 15.096 7.963 23.881 111,055 15.542 27.414 Other debior5 Prepayments and accrued income 738.582 16 CREDITORS: Amounts talllng due wlthin oneyear. 2025 2024 CONSOLIDATED Bank loans Other raxation and social securty Deferred income Trade creditors T8 28.114 61.783 346,597 64.389 18.526 48.185 3.231 42.455 138.626 19.335 15.099 18,655 Other creditor5 Accruals 567.594 237,401 2025 2024 CHARITY Bank loans Other taxation and social security Deferred income Trade creditors Other creditors Accruals 18 40.217 40.217 126.001 9.262 11.922 13.246 59.542 340,924 48.516 12.475 43.209 19 529.466 2￿,648 Page 23 Recove Connections d subsidia Com Notes to the Accounts forthe Year End 17 CREDITOR&- Amounts falling due after more than one ￿￿. 2025 2024 CONSOLIDATED 8ank loans 101.498 18.010 CHARITY Bank loans 86.800 18 LOANSAND OVERDKAFTS 2025 2024 CONSOLIDATED Bank loans 129.672 21.247 Payable wihin one year Pay3ble one to fwe years Payable over fNe year5 28.114 1￿.913 585 3.231 14.063 3.947 129.612 21.241 CHARITY Bank loan5 111.600 Payable urithin one year Payable one ￿ fNe years Payable over fNe years 24,8LKI 86.80CI 111.600 The long-term loan5 are unsecured. One loan wè5 obtèined as part of the Coronawrus"Bounce Back Loans" scheme_ The loan advanced during Ihe year was tsken to help the Charity purchase a buildin& ensuring It could continue operatiTrg its Social Enterprise5. 19 DEFERRED INCOME 2025 2024 CONSOLIDATED Other deferre£l incotne 346.597 138.626 CHARITY Other deferred incorTre 340.924 126.001 Deferred income compromi5e5 funding receNed in athance for projects over a specific time period which is for fuiure period5 or overlap5 the year end. Also. iniluded in deferred income ￿ a capital grant released over the life of the a55ei. Page 24 Recove Conn ction and Subsidia Com (Limited.by Guaranreej Notes to the Attotsn h 2025 20 MOVEMENT IN FUNDS The Income funds of the chartty indude re5triaed funds compayn8the following unexpen(Jed balances of (Jonations and grants held on trust for spEcific purp)se5'. Balance at CONSOLIDATED ri12024 resources ex ended Reioveryserviie IMBCI Universal Grani IMBCI Recovery Semce ICGL Gateshead) Recovery SeNice 15underknd) Recovery 5ervice15tocktonl oiher granrs Building Capaiity ProjectlLEROI Redcar Hampshire National Lottery Peer Advocacylstocktonl Recovery Service IHartlerM)oll ProjectAdder Housing Projert IMBCI IPS employment servrces IMBCI 8oxing Gym IMBQ IPS employrnent services (Sunderlandl Changing Futures1Sunderlandl IPS ernploytneni service51Stocktonl Reiovery Servile Ioarlingionl IPS employmeni serwces (Darlingtonl 28.239 117.945 187.824 49.217 57.421 5.392 614.044 133.406 665.398 316.739 282.333 127.587 7Z798 626.974 42.500 33.818 200.150 72.150 147.680 146.985 1556.4111 198,6721 1590.8631 1284.2081 1228.3191 192.4041 120.0001 1354.6141 121,1241 145.1781 I1￿.278} 164.8641 1107.9631 1125.7071 13.4321 1142.4831 149.9721 1201.1431 1286.7831 176.9621 171.8961 124.2351 181.6951 137.9591 149.0711 13.976 128,444 180.664 43.789 62.364 28.256 52.798 206.880 17,542 20.134 38.928 10 145.789, 165.4201 13.8341 14,1481 123.7711 IB.1001 126.6371 1416061 35.642 52.827 824 132.709 89.416 5.052 3.803 7.836 51687 122.947 7.159 1.620 18.244 184.762 73.412 221676 492000 127.8381 131.2761 120.9851 176.2951 19.0121 53.235 251.869 5.229 956.940 4.539,396 13.541.380) 1617.09n 1.337.859 Unrestricted Funds Trading subsidiary 418.697 1253.9021 55.405 14&384 1379.2941 1381.447 429.811 187.286 524.619 1299.6791 1.121.735 4.743.185 14.302,1211 1.562.799 We have been the Abstinenie and Recovery contract holders on behalf of Middlesbrough Council gnce October 2017. Darlingcon since Oaober 2023. Hartlepool Counal since Ortober 2023. Harnpshire since ottober 2024 arKI Redcar & Cleveland Since April 2024. Since November 2018 Recoveryconnections has been sutKontracred to ¥%r)rkwith Gateshead Recovery Partnership in relation ro providing inregraied drug and alcofN)I recovery services_ The contract is scheduled to run uniil October 2026. Asa sub-coniracior of CGLwe provide INed exper￿nce recoverysupportas part of Stockion and Surtderland Recovery Service. The LERO Capacity Building grant is led ty Recovery Connections and 3 consortium of Iwed experience recovery organisaiions to support the development of small and emerging LER¢￿ in En8land. Included within other grants.. MHWP SSA- Collegiète program Transfers from restricted funds to unrestricted ftjnds intheyear relareto tnanagetnenicharges restricted expenditure elirninated on consolidation. Page 25 ecov Connections Com Lirni to theAccounts for theyèar Ended 31 March 20 20 MOVEMENT IN FUNDS Icontinuedl Balance at 31 Marcb CONSOLIDATED Balance at Incomin Resourt nded resources ex Recovery Semce IMBCI Universal Grant IMBCI Recovery Setwice ICGL Gate5FEadl Recovery Service15underlandl Recovery Service Isrocktonl OthergTants National Louery Peer Advocacy Isioiktonl Recovery Service IHarr1epooll PrOJ￿t Adder Housing Proje(i IMBQ IPS employment services IMBQ Telephone SLJPPOrt Line IMBCI Boxing Gym IMBO IPS efflployment services Isunderkndl Changing fuiure5 Isunderlandl IPS employmeni 5ervice5 Istockionl Recovery Service (Darlingtonl IPS employment service5 (Darfingtonl 62.950 115.802 79.630 47.800 88.032 86.703 595.313 133.400 591.967 232.$45 2¢Y).093 30.995 47.475 66.667 10.(K)O 142.OLKI 141.411 1482.6781 1117.9171 1426.148) 1207.42n 1209.80DI 132.1411 188.2501 17,1731 19.1761 1238.6811 1124.4281 16.4631 19.2841 1103.8181 1103.9241 1190.5321 1170.1241 175.0821 1147.3461 173,3401 157.6251 123.7011 120.9041 28.239 117,945 187,824 49,217 57.421 5.392 35.642 52,827 824 131709 89.416 13.7481 16.6671 243.590 85.289 114.2001 112.8SSI 14336 I.8￿> 3.936 43.439 1.858 3.954 5.052 3.803 7.836 52.687 121947 7.159 116.417 118.483 219.434 323.295 87.021 110.6861 110.6591 119.6541 132.0821 18.7341 885.672 3.056.516 12.603.046) 1382.2021 956,940 Unre5trirted Fund5 Tradlng $ubsidiary 386.510 1216.6291 49.864 146.534 1297.3711 1286.3151 279,694 102,508 418,697 1253,9021 1.055.553 3.252.914 13.186.7321 1,121.735 21 ANALYSIS OF ASSETS 8EWWEEN FUNDS 20 Fund balances ai 31 March 2025 are represenied by. Tangible assets Current assetsl(liabilitiesl Long rerm liabilityes 57.039 269.399 1101.4981 57.039 1.007.258 1101.4981 57.544 125.261 118.0101 57.544 1,082,201 118.0101 1337.859 956.940 224.940 1.337.859 1361759 164.795 956.940 1.121.735 22 OPERATING LEASE COMMITMENTS At the reporting end date. the group had ou15tanding cornmitrnents for fvture rninirnum lease payments under non- cancellable operating lea5e5. which fall due as follows.'- 2025 2024 Wiihin one year Within one to five years 15.(MXI 22.5(Kl 9.637 69.637 37.500 Lease paymenis re(ognised a5 on eX￿nSe in the year èmotsnied to E30.(XX). Pa8e 26 Connections nd Subsidia Com Note5 to for Year Ended 31 M RELATED PARTYTRANSAcfioNS Remuneration of key management personnel The remuneration of kÈy management personnel 15 a5 follows'.- 2025 2024 Aggregate compensation 251.543 199.348 Key management personnel ionsisting of senior leadership learn. There were no related party transaftions in the year. REWLTS OF PARENT 2025 2024 Total Incoming resource5 Net movemeni in funds 4594.801 401493 3,106,380 103.459 In the previous yearthe charity prowded a bad tjebt prowsion amouniing to £64.325 against its Su￿diary debtor baL3nce. Thi5 provision wa5 eliminated on con9)lidation. PENSIONS The charityoperates a contributory defined contfibution pension schen* forall employees. The charityconiributions are charged to the Siaternentof Financial Activitiesinthe peiiod towhichtheyrelate.£53,773 w3s paid in contributions during the year12024." £40.2301. The amount out5tsr¥Jing ai 31 March 2025 was £1 1.91212024.. £8.6021. 26 CASH GENEKATED FROM OPERATIONS 2025 2024 Surplu5 forthe year 441.129 66.182 Adjustments for.. Depreciation oftangible fixed &sets 26.371 23.333 Movements in working£aptsl= Deirease Illncreasel in stocks Ilncreasel in debtors Increase in creditors 69 11661 1338.D651 45,330 1188.3881 305.310 Cash generated from operations 584A91 1203.3861 27 ANALYSISOF CHANGES IN N￿FUNDs At 1 April 2024 Cash Flows At 31 March 2025 Cash at bank and in hand $88.588 666,931 1.255.519 Loèns falling due wiihin oneyear Loans falling due after MO￿ than one year 13.2311 118.0101 124.8831 183.4881 128.1141 1101,4981 567.347 $58.S60 1.125,907 Page 27