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← Social Interest Group

2025-03-31-accounts

•• Social Interest Group Annual Report Trustees, Report & Consolidated Financial Statements Year ended 31 March 2025 Charity no. 1158402 Company no. 09122052

Social Interest Group Trustee Report Year ended 31 March 2025

Contents

Reference and Administrative Details of the Charity, its Trustees and Advisors ................................... 3 Objectives and Activities ......................................................................................................................... 4 Chair Foreword ....................................................................................................................................... 7 Chief Executive’s Statement ................................................................................................................... 8 Strategic Report .................................................................................................................................... 13 Financial Review .................................................................................................................................... 18 Structure, governance and management ............................................................................................. 21 Statement of responsibilities of the trustees ....................................................................................... 23 Independent auditor’s report ............................................................................................................... 24 Statement of Financial Activities .......................................................................................................... 29 Balance Sheet ........................................................................................................................................ 30 Cash Flow Statements ........................................................................................................................... 31 Notes to the Financial Statements ........................................................................................................ 32

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Social Interest Group Trustee Report Year ended 31 March 2025

Reference and Administrative Details of the Charity, its Trustees and Advisors

Social Interest was incorporated as a company limited by guarantee on the 8[th] of July 2014. It became a charity registered with the Charity Commission on the 1[st] of September 2014. It changed its name to Social Interest Group on the 1[st] of October 2014. Social Interest Group (SIG) is referred to as the Charity throughout this document.

Directors and Charity trustees

The directors of the Charity are its trustees for the purposes of charity law and throughout this document are collectively referred to as trustees. The current trustees and those that served during the year:

Chair

Karl Marlowe

Other Trustees

Dylan Kerr Stuart Jenkin Jeff Loo (left 19[th] March 2025) Claire Barton Cathy Kane (appointed 28[th] November 2024) Kobi Boakye (appointed 28[th] November 2024)

Registered Office

1 Waterloo Gardens Milner Square London N1 1TY

Auditors

Buzzacott Audit LLP 130 Wood St London EC2V 6DL

Company Secretary

Michael Rutherford (left 5[th] September 2025) Ian Hanham (appointed 5[th] September 2025)

Senior Leadership Team

Group Chief Executive

Gill Arukpe (left 30[th] April 2025) Cathy Kane (Interim appointed 17[th] February 2025)

Director of Finance & Resources

Michael Rutherford (left 5[th] September 2025) Ian Hanham (Interim appointed 29[th] July 2025)

Bankers

Lloyds Bank plc 25 Gresham Street London EC2V 7HN

Solicitors

Russell Cooke LLP 2 Putney Hill London SW15 6AB

Director of People & Culture

Maria Speight

Director of Services & Support

Angela Henry Paul Addicott

DWF LLP 1 Scott Place 2 Hardman Street Manchester M3 3AA

Director of Development, Marketing & Communications

Greg Tythe

Director of External Affairs & Impact

Adam Moll

Company registration number 09122052 Charity registration number 1158402 www.socialinterestgroup.org.uk enquiries@socialinterestgroup.org.uk

Director of Housing & Maintenance

Matthew Costin

Director of Compliance, Risk & Internal Audit

Jenny Ralls

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Social Interest Group Trustee Report Year ended 31 March 2025

The trustees present their report and the audited financial statements for the year ended 31[st] of March 2025. The reference and administration information set out on the previous page form part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice – Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Objectives and Activities

Purposes and Aims

The objects of the charity, as set out in the Articles of Association, are for the public benefit:

The trustees annually review the charity’s aims, objectives, activities, and subsidiaries. This report looks at what the group has achieved and the outcomes of its work in the reporting period. The trustees report the success of each key activity and the benefits the group has brought to the people it is set up to help. The review also helps the trustees ensure that the charity’s aims, objectives and activities remain focused on its stated purposes.

The trustees have referred to the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and planning its future activities. In particular, the trustees consider how planned activities contribute to the aims and objectives.

Penrose Options

Penrose Housing Association was set up as an Industrial & Provident Society, an exempt charity, in 1969 by two ex-offenders and several volunteers to provide housing for ex-offenders. It became a company limited by guarantee, registered with the Charity Commission and changed its name to Penrose Options on the 28th of March 2013. It traded as Penrose and joined the Group on the 1st of October 2014. Penrose Options now trades as SIG Penrose and strives to address inequality of access to health, employment, training, and social care support for people in a range of settings, including prisons, hospitals, rough sleeping, experiencing or at risk of homelessness. People struggling with daily living, mental health, personality disorders, trauma, substances and alcohol, or need support due to their complex, chaotic lives.

SIG Penrose specialises in working with people who struggle with other services as they present personal or public safety risks. SIG Penrose provides practical social support and health care solutions, supported housing in residential accommodation, resource centres, floating support, community gardens and Housing First services. SIG Penrose also provides specialist rehabilitation and technical and therapeutic support that aids recovery, reduces reoffending and changes behaviour. SIG Penrose’s flagship service, Penrose Drive (an Independent Approved Premises), supports men who have served long sentences and require a level of supervision on release from prison. We currently operate across London, Bedfordshire and Luton and have the ambition to grow.

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Social Interest Group Trustee Report Year ended 31 March 2025

Equinox Care

Equinox Care was established in 1986, incorporated as Drink Crisis Centre on the 23rd of March 1987, opened its first service in 1990 and changed its name to Equinox Care on the 13th of April 1999. It traded as Equinox and joined the Group on the 1st of October 2014. Equinox Care now trades as SIG Equinox and provides personalised residential and community-based health and social care services for people furthest away from living independent lives, often with challenging behaviours, forensic mental illness and mental health disorders, general mental health problems, histories in the criminal justice system, substance and alcohol use, lengthy periods of homelessness and excluded from education and employment.

SIG Equinox staff are trained to work in a trauma-informed way. We embrace enabling environments to keep residents and participants at the centre of what we do and how we work. Our residential services are also delivered using a psychologically informed framework. This helps ensure the people using our services achieve stability, rehabilitation, resettlement, and long-term recovery.

SIG Equinox’s Aspinden Care Home, based in London, accepts referrals from across England and provides a residential service for treatment-resistant adults using alcohol. We support adults who often cannot access other care homes due to their alcohol use and their associated behaviours. We use the Blue Light system and harm minimisation model to ensure the safety of the residents and staff.

SIG Equinox currently operates across London and in Brighton and has ambitions to grow.

Pathways to Independence

Pathways to Independence joined the group on the 19[th] of January 2021. Pathways to Independence now trades as SIG Pathways. Its purpose is to provide support and relief, including rehabilitation from the causes and effects of poverty, homelessness, illness and reoffending behaviour for persons 16 years and over in the county of Kent and the surrounding area by providing or assisting in the provision of supported accommodation, education, training for employment, advice and counselling and other support facilities. SIG Pathways provides a peer mentoring service, a temporary accommodation service in Maidstone, and a Rough Sleeper Initiative (RSI) project in Medway and supported accommodation for single people and people leaving prison who are homeless.

Milner Gibson

SIG Penrose operated an in-house maintenance department for more than twenty years for its accommodation-based services. Penrose Works Limited was incorporated on the 21st of October 2013, commenced trading on the 1st of August 2014, joined the Group on the 1st of October 2014 and changed its name to Milner Gibson Limited on the 27th of January 2016. Milner Gibson ceased trading on the 31st of March 2017, when the business was transferred to the Housing Management department within the charity. The company was dormant during the year. After the year end the Company began trading again and supplying night concierge staff within the Group.

SIG Housing Trust

On registration as a charity, SIG Investments (SIGI), the principal activity was set up to buy or lease property on behalf of the group and then lease it to group members at an affordable social rent. SIG Investment was established in 2014. It has an independent Board of Trustees from the parent company, SIG. In 2023, SIG Investment consulted its residents regarding its name and branding. It was agreed that a rebrand was required. As a result, the registration was amended, and the name was changed at Companies House and the Charity Commission to SIG Housing Trust (SIG HT). Since then, the SIG HT Board has developed a property strategy that

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Social Interest Group Trustee Report Year ended 31 March 2025

includes a housing development and social housing management programme for residents supported by the group. The strategy for SIG HT is currently proactively trying to register as a social landlord. SIG HT consulted residents across the group who said they need access to permanent social housing as they move on from supported housing or directly when they leave inpatient hospital care or prison. SIG HT aims to create self-contained social housing units to improve the housing quality available for adults moving on from supported housing, prison, hospital and street homelessness.

Safe Ground

Safe Ground, trading as SIG Safe Ground, was established in 1995 and joined Social Interest Group on the 1st November 2022. Social Interest Group is its only member, making it a subsidiary of Social Interest Group. SIG Safe Ground is an expert in designing and delivering arts-based, therapeutic group work and operates nationally in various custodial and community settings. SIG Safe Ground’s work offers programmes to access new perspectives, creates opportunities for discussion and debate, and invites participants to take risks, experiencing themselves and each other in new ways with proven results. Analysis of SIG Safe Ground’s Fathers Inside programme shows a 40% reduction in re-offending between programme participants and their counterparts who did not participate (Justice Data Lab, 2016).

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Social Interest Group Trustee Report Year ended 31 March 2025

Chair Foreword

As Chair, I have the pleasure of introducing this year’s Annual Audited Accounts for Social Interest Group (SIG). These not only reflect the robustness of our financial stewardship and operational transparency but also capture the impact of the work done by dedicated staff to make a difference for the communities we serve.

I have been chairing SIG for more than eight years, but this year is special, as it marks a significant milestone in SIG’s journey—our tenth anniversary . It is a time to reflect on our achievements and evolution, and reaffirm our commitment to our values: Ambition, Empowerment, Transparency and Inclusivity. It is also a year of transition, as we bid a heartfelt farewell to our founding Chief Executive, Gill Arukpe MBE. Gill’s visionary leadership has shaped SIG into the organisation it is today. On behalf of the Board, I extend our deepest gratitude to Gill and wish her every success in her future.

This is a very challenging time for our sector, with reduced funding, increased pay awards, costof-living pressure, and stretched resources. As we welcome new leadership and embark on the first year of our ambitious five-year strategy, we do so with clarity of purpose and a sense of urgency. The social care, criminal justice, and voluntary sectors continue to face systemic challenges— workforce shortages and increasing complexity of need. Yet, SIG remains able to deliver its mission, demonstrating resilience and adaptability.

The outcomes highlighted in this report are a testament to the necessity of our traumainformed, person-centred approach. We support thousands across our services with pioneering new service models in women’s support and forensic mental health. The report is not just numbers—they represent lives transformed, families reunited, and futures reclaimed.

As trustees, we are committed to ensuring that SIG remains financially robust, strategically agile, and ethically grounded. We are proud of the organisation’s continued investment in its people, its commitment to evidence-based practice, and its drive to influence policy and practice at a national level. Looking ahead, we remain focused on a shared vision. The road ahead will be challenging, but we are confident in the strength of our leadership, the dedication of our staff, and the resilience of those we serve.

Thank you to all our partners, funders, colleagues, residents and participants. Together, we will continue to build a more compassionate, equitable future.

Dr Karl Marlowe

Chair, SIG Board of Trustees

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Social Interest Group Trustee Report Year ended 31 March 2025

Chief Executive’s Statement

As we conclude the financial year, I feel immense pride and gratitude reflecting on Social Interest Group’s (SIG) remarkable journey. This year is particularly special for us, marking our 10[th] anniversary and a significant leadership transition. In March 2025, we bid farewell to Gill Arukpe MBE, our visionary founder, who dedicated over a decade to our mission. We extend our heartfelt thanks to Gill on behalf of our staff, trustees, and the 96,000 individuals whose lives SIG has positively impacted. Her legacy will continue to inspire us into the future. We wish her every success in this new chapter of her journey.

I am honoured to step into the role of Interim CEO as we embark on the first year of our ambitious five-year strategy. The UK social care, criminal justice, and voluntary sectors face chronic underfunding, inflationary pressures, workforce shortages, and increasingly complex needs. With new government legislation poised to reshape how our services are commissioned, monitored, delivered and accessed, we expect further instability. Yet, despite these pressures, SIG remains a beacon of innovation, compassion, and resilience.

This Impact Report highlights the extraordinary outcomes we have achieved this year. We proudly supported 4,489 individuals across our services, and facilitated 38,937 family visits at our Visitor Centre at HMP Altcourse. Our residential services achieved a 70% success rate in securing positive move-on outcomes to independent or step-down accommodation. Additionally, 78% of participants in our criminal justice programmes successfully completed their courses without recalls or new convictions. Every £1 invested in our Fathers Inside parenting programme generates an impressive annual saving of £5.49 for the public purse by notably reducing crime and prison costs.

We take pride in the fact that four out of every five individuals in our forensic mental health services have successfully remained out of hospital throughout their time with us. Our intensive mental health services have proven their value at a cost of just £316 per room per day, significantly lower than the average £521 per day for a mental health ward bed. This translates to savings of £1,435 per person per week; an impressive £74,907 per person per year.

Our STEPS hospital discharge service effectively bridges critical gaps between mental health and housing support pathways, achieving a nationally important 35% reduction in patient bedblocking. This results in substantial savings of £368 per bed per night, which translates to £134,320 per bed each year. These impressive figures testify to our trauma-informed, personcentred approach and our staff's passion, persistence, and endeavours to drive our mission.

We empower individuals to reshape their identities, reclaim stability, and rebuild their lives with dignity and purpose. We are proud to say we are effectively keeping people out of prison, out of hospital, and off the streets. We take pride in growing our women’s services. We launched a new refuge in London this year and plan another in Luton in early 2025, further strengthening our commitment to supporting women in need nationwide.

We have strengthened our evaluation frameworks and continue to invest in our people. Ensuring our employees feel valued, safe, heard, and supported is central to our continued success as we move forward with renewed purpose and ambition. Our new five-year strategy marks a pivotal moment for SIG, building on a decade of impact while setting a bold course for the years ahead. Our focus remains on delivering high-quality, inclusive services that effectively respond to the needs of the people and communities we serve, amidst a changing world.

We know that the challenges facing our sector will not ease, but we firmly believe that meaningful change is not only possible but achievable. We witness this every day through the resilience of those we support, the dedication of our staff, and the strength of our partnerships. Together, we will continue to advocate for a more compassionate, equitable system that empowers people to thrive and achieve positive life outcomes.

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Social Interest Group Trustee Report Year ended 31 March 2025

On behalf of all at SIG, I would like to thank everyone who has been part of our journey. Whether you are a colleague, partner, funder, or someone who has accessed our services, your belief fuels our mission and everything we do. I am honoured to lead SIG into this next chapter, and I am genuinely excited about what we can achieve together.

Cathy Kane, Interim Group Chief Executive

10[th] October 2025

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Social Interest Group Trustee Report Year ended 31 March 2025 A Year

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Family visits at HMP

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Social Interest Group Trustee Report __ Year ended 31 March 2025 ‘Advice, information, and

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Strategic Report

Vision

Healthier, safer, and more inclusive communities

Mission

Empowering independence through trauma-informed solutions and dynamic partnerships that keep people out of prison, out of hospital, and off the streets.

Social Value

In the face of a worsening cost-of-living crisis this year, SIG's impactful services supported those experiencing isolation and challenging circumstances. SIG is committed to the vision of integrated community services. Our extensive experience enabled us to meet the growing demand for psychologically informed, person-centred care that empowers individuals to thrive.

Resident and Participant Feedback

Cost Benefit

Our most intensive mental health services, which help to keep people out of hospital, cost an average of £316 per room per day, compared with an average of £521 per day for a bed on a mental health ward. That equates to savings of £1,435 per person per week or £74,907 per person per year.

Every £1 invested in our Fathers Inside parenting programme returns an annual projected saving to the public purse of £5.49 on crime and prison costs. For every programme delivered, this equates to annual savings of £108,702. These savings are based on MoJ Justice Data Lab analysis, which compared reoffending rates between Fathers Inside graduates and a matched control group.

Our STEPS hospital discharge service in Bedfordshire has reduced the Clinically Ready for Discharge (CRFD) rate by 35%, resulting in savings of £368 per bed, per night, or £134,320 per bed, per year.

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Social Interest Group Trustee Report Year ended 31 March 2025

Investing in Growth

Harnessing the Power of a Group Psychological Lead

SIG is committed to bridging the existing gaps in NHS services to reduce waiting times, using holistic practices to lessen the risks of poor health, self-harm, and suicide. This year, as a crucial element of our Theory of Change, we introduced a Group Psychological Lead to strengthen our services and increase our impact. This position is instrumental in providing staff with the requisite training and resources to provide safe and effective services while continuously improving quality and standards. As we advance our training initiatives, we seek to dispel institutional fears, ensuring that our services are grounded in a trauma-informed approach that is sensitive to the needs of service residents and participants.

Unlocking Potential Beyond Numbers

Over the past year, we have further strengthened our services through comprehensive audits and learning processes. Recognising the complex and unique safeguarding situations we face, we have made substantial investments to enhance our data protection practices. Additionally, we have effectively aligned our procedures with the NHS Patient Safety Incident Response Framework, setting a standard for best practices. We have also expanded our audit and compliance team, reinforcing our culture of accountability. We actively reduce risks through targeted training, expert advice, and practical information. Our colleagues are empowered to serve as the first line of defence against potential issues and as ambassadors for our commitment to service excellence and ethical conduct.

Innovative investments in Local Mental Healthcare Services

In September, we officially launched a new community rehabilitation service in Lewisham under SIG Penrose, in partnership with the South London and Maudsley NHS Foundation Trust (SLAM). The SLAM Community Rehabilitation Service is a key part of the South London Mental Health and Community Partnership (SLP) Complex Care Programme. Our 24-hour supported living model offers integrated rehabilitative support to individuals transitioning from inpatient wards to the community, providing a less restrictive alternative to traditional inpatient rehabilitation.

Designed to support some of the most complex patients under SLAM’s care, many of whom have experienced prolonged stays in restrictive inpatient settings, it provides up to nine months of intensive rehabilitation and access to education and employment opportunities. Our multidisciplinary team, including a psychiatrist, occupational therapist, and dual diagnosis worker, aims to reduce inpatient stays and improve patient quality of life. Additionally, we seek to enhance the overall health and adult social care systems serving the boroughs of Croydon, Lewisham, and Southwark.

Creating an Empowering and Inclusive Culture

We aim to create an equitable and supportive environment for everyone in our community. Our twenty-five volunteer Equity, Diversity, and Inclusion (EDI) Ambassadors, comprising back office and frontline service staff, are essential in promoting inclusivity across our services and daily operations. They connect with our staff base and Participant and Resident Involvement Group, effectively representing the perspectives of those who utilise our services, promoting collaboration and open dialogue across SIG’s communities. This year’s themes for resident meetings were developed during our pre-MP visits preparations at SIG Penrose New Hope forensic mental health service and SIG Equinox Mental Health Supported Housing Service in Lewisham. To engage the LGBTQIA+ community, we hosted one online meeting and three in-

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person gatherings to address residents' needs and concerns and build momentum ahead of our Pride event in Kensington and Chelsea.

Ambassadors for Menopause and LGBTQIA+ led three workshops, providing valuable insights to improve our service delivery and support models. These workshops promote discussion to understand better work and service living environments, and many feature guest speakers from partner organisations and allies in health, justice and social care. Additionally, we rolled out the first of our monthly staff EDI Awareness Sessions in January to identify and mitigate unconscious biases.

We made significant progress in partnerships to support marginalised communities. In our EDI initiatives, we collaborated with ten agencies, including Stonewall Housing, Metropolitan Police, Kent Housing Group, Criminal Justice Alliance, and the Academy for Social Justice. Through SIG Penrose, which partners with over 144 local Luton agencies, we achieved a notable milestone this year by engaging with local services that support Luton Healthwatch during the Pride in Luton event in June. Furthermore, our involvement in the Denny Report Review held in November afforded us another opportunity to address health inequalities in Bedfordshire, Luton, and Milton Keynes.

Our Inclusivity Charter marks an important step in ensuring that SIG promotes psychological safety, empowering staff, residents, and participants to express themselves freely. We also successfully piloted the first roll-out phase of the British Sign Language Video Translation Service, which we plan to expand across SIG.

Influencing and Impact

Managing constant political change has become business as usual in recent times; however, last year felt particularly unsettled with the arrival of a new government and a raft of policies and legislation to shake up the sectors in which we operate. Much of the change is welcome. In particular, it was pleasing to see progress in the two areas where we have sought to influence the most: long overdue reform of the Mental Health Act and a more progressive approach to criminal justice policy through the Sentencing Review. For both causes, we have created platforms bringing together decision-makers alongside our residents, participants and sector partners, to make clear, evidence-based cases for why support can be far more impactful when delivered in community settings over archaic secure institutions ill-equipped to support recovery or rehabilitation.

As part of our advocacy efforts, we hosted several MPs in our services, where residents spoke powerfully about their journeys and how the systems they encountered had often let them down when they needed help the most. In both instances, we will continue to engage with decision-makers and the people we support to ensure that the changes implemented are practically workable and that lived experience has a meaningful role in continuing to drive improvements.

We were also proud to contribute to several vital campaigns, including Homeless Link’s Ending Homelessness Together, Providers Unite’s Day of Action for Social Care Reform, and the National Housing Federation’s Save Our Supported Housing. We will continue to work with partners and umbrella bodies across health, social care, housing, and justice to ensure our sector’s voice is heard.

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Social Interest Group Trustee Report Year ended 31 March 2025

Plans for the Future

SIG remains committed to delivering safe, effective services that foster inclusive, empowered communities. As we look to the future, we will continue to invest in our people, systems, and partnerships to ensure our services remain responsive, resilient, and reflective of the people we support.

Investing in People: We will enhance staff development through targeted training, wellbeing initiatives, and retention strategies that build a skilled and supportive workforce. Embedding our Audit Framework and cultivating a positive safety culture will reinforce operational integrity and promote a shared commitment to safety across all services.

Expanding Inclusion and Engagement: Our focus will be on broadening our volunteering offer, growing our inclusivity programme, and advancing our technological capabilities to improve service accessibility and responsiveness. These initiatives will deepen community engagement and ensure our services meet the diverse needs of those we support.

Elevating Housing Standards: Through the delivery of the SIG Housing Trust strategy, we will uphold and develop the SIG Home & Support Standards , ensuring access to stable, high-quality housing options that promote independence and wellbeing.

Secure Financial Sustainability: Financial resilience remains a core priority. We will focus on contract retention and strategic growth, diversify income through fundraising, donations, and commercial activity, and minimise void loss. Streamlining group procurement will further enhance value for money and operational efficiency.

Together, these strategic actions will strengthen our foundation and position SIG to lead with integrity, inclusion, and impact in the years ahead.

Thank You

This report and all the work across the group would not have been possible without the considerable and ongoing contributions of all our multiple partners, allies, supporters, commissioners and funders. This new and vital funding has enabled us to extend our activities, launch new projects and pieces of work, and make a difference in the lives of the people we support across our services.

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Social Interest Group Trustee Report Year ended 31 March 2025

Transformation Journeys

Tom’s Story

After losing his mother and experiencing a failed relationship, Tom’s life spiralled out of control, leading him to rely on alcohol. He openly shared his journey through substance use, mental breakdown, and recovery, highlighting the profound impact of his mother’s death at 14, a friend's tragic death from alcohol, and the downward trajectory of his marriage. After a suicide attempt in 2022, Tom was admitted to the hospital and placed in SIG’s Penrose Havering Complex Needs Service, a critical turning point in his recovery.

At SIG Penrose Havering, Tom received support from a multi-disciplinary team, including keyworkers and the Havering Rough Sleeper Team. Initially reserved, he gradually reduced his drinking with encouragement from staff and re-engaged with his passion for music as a drummer. In July 2023, he took on the service representative and peer mentor role, demonstrating his commitment to helping others. Despite a relapse due to overwhelming responsibilities, Tom remained positive and embraced therapy and education, ultimately stopping drinking on September 4, 2024. His determination proved essential. After 22 months of support, Tom transitioned to independent living in a self-contained apartment. He left with a strong resolve to give back, illustrating that recovery is a journey rooted in personal commitment and community support.

Lucy’s Story

Lucy came to SIG’s Equinox Brighton Women’s Service three years ago after experiencing severe domestic violence, homelessness, and active substance use, which led to her children being removed from her care. We focused on building a trusting relationship with her and created a tailored support plan using multi-agency services. As she gained emotional and physical stability, she committed to battling her substance use, which allowed her to reconnect with her children and positively impact her mental health. Lucy wanted to learn to read so she could share that experience with her youngest son.

We referred her to Step Change, where she successfully improved her literacy skills, strengthening her bond with her children. With stabilised finances, we could assist her with housing transition services. This year, her dedication earned her a SIG Recognition Award in the Inspirational People Category. As Lucy prepares to move into her own home, we are confident in her ability to thrive and immensely proud of her accomplishments.

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Social Interest Group Trustee Report Year ended 31 March 2025

Financial Review

The charity recovers the costs of the services that it provides to its subsidiary undertakings. The charity made a surplus of £196k (2023/24 - £176k). The group had net unrestricted incoming resources for the year of £532k (2023/24 - £813k). Unrestricted reserves stand at £4,072k at 31st March 2025 (2023/24 - £3,540k) with £34k in restricted reserves (2023/24 - £34k) and a liability of £2,537k (2023/24 - £2,914k) in the pension reserve for past service deficits comprising in Penrose £384k (2023/24 - £622k), Equinox £2,153k (2023/24 - £2,285k) and Pathways £nil (2023/24 - £7k).

SIG Penrose made a surplus of £413k (2023/24 - £665k) during the year. This results in an unrestricted fund balance of £3,133k at 31st March 2025 (2023/24 - £2,985k). In addition, it had a restricted fund balance of £3k (2023/24 - £3k).

SIG Equinox made a surplus of £194k (2023/24 - £100k) at the operating profit level. This results in an unrestricted fund balance in deficit of £2,151k at 31st March 2025 (2023/24 - £2,171k deficit). In addition, it had a restricted fund balance of £1k (2023/24 - £1k) after receipts of £2k (2023/24 - £5k) and expenditure of £2k (2021/22 - £5k).

SIG Pathways made a surplus of £36k (2023/24 - £76k) at the operating profit level before a past service surplus pension gain of £7k (2023/24 - £8k). This results in an unrestricted fund balance of £1,913k at 31st March 2025 (2023/24 - £1,877). In addition, it had a restricted fund balance of £30k (2023/24 - £30k).

SIG Safe Ground made a surplus of £105k (2023/24 - £33k) at the operating profit level. This results in an unrestricted fund balance of £200k at 31st March 2025 (2023/24 - £95). In addition, it had a restricted fund balance of £nil (2023/24 - £nil)

At the end of the financial period, the charity had unrestricted general reserves of £839k (2023/24 - £643k).

Milner Gibson did not trade during the year, but started trading after the year end with the other Group companies providing concierge services.

SIG Housing Trust made a surplus of £22k (2023/24 - £21k) at the operating profit level.

The pensions reserve relates to the past service deficit liability relating to the defined benefit Social Housing Pension Scheme. The triennial valuations in 2008, 2011, 2014, 2017 and 2020 resulted in member organisations being charged a levy to bring the scheme back into surplus. These triennial valuation deficit contributions are reflected in Penrose and Equinox's liabilities. These charities closed their participation in this pension scheme but remain liable for an element of the deficit.

The trustees consider the results acceptable given the wider economic environment, ongoing changes, and increased competition within the sector. Therefore, our focus must remain on developing new services, new funding models, and effective and financially efficient models of service delivery moving forward.

The principal funding sources remain Local Authority block contracts, mainly for our resettlement projects, alongside funding from ICBs and NHS Trusts towards our work with people recovering or living with mental ill health and personality disorders, and our work with preventing homelessness and people experiencing homelessness. The trustees appreciate the funding from its funders, including those statutory commissioners for the work streams they support, and the vital non-statutory funding received from individuals, trusts and foundations.

Principal risks and uncertainties

SIG operates in a complex and high-risk environment, supporting individuals with significant needs and often traumatic histories. The organisation’s risk management framework is designed

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Social Interest Group Trustee Report Year ended 31 March 2025

to ensure that risks are identified, assessed, and managed in line with its strategic objectives and risk appetite.

We review our risk appetite annually with the board in the context of the incoming financial year. Our risk register is a living document with strategic risk reviewed annually in light of the 5 year strategic plan and risks being actively mitigated reviewed at leadership level on a monthly basis. Leadership risk is informed by incidents, complaints, safety reviews, stakeholder feedback and escalated from services and central departments where required. Movement on this register, such as addition of new risks, closure following mitigation, and any changes in impact and likelihood are overseen by the leadership team including CEO on a monthly basis, and quarterly by board, primarily at the Finance, Risk and Audit Committee. Major projects and mobilisations have their own risk log and remains a key responsibility of the project team, with support and oversight from both the leadership team and board.

The following outlines the principal risks and uncertainties currently facing SIG, aligned with the organisation’s risk appetite statements and strategic priorities.

Another significant risk is the pension deficit contributions made to TPT and to the KCC to fund the shortfall in the pension liability of the schemes. The risk is regularly reviewed to ensure that contributions are affordable and do not significantly burden the group.

Risk Risk Description Mitigation
Financial
Sustainability		 The organisation faces financial risks due
to funding volatility, rising operational
costs, and challenges in property
procurement.		 Dynamic monthly budgeting, engagement
with funders, and strategic partnerships to
ensure financial resilience.
Operational
Delivery and
Service
Continuity		 Risks include workforce challenges,
policies and procedures requiring full
review, and system inefficiencies that
may affect service quality and resourcing.		 Improved recruitment, policy updates, and
investment in systems and leadership
development.
Reputational Risk Potential reputational damage from
regulatory scrutiny, incidents, or public
perception.		 Quality assurance, incident protocols, and
proactive stakeholder communication.
Harm to
Individuals		 Risk of harm to participants, staff or the
public due to the nature of services
provided.		 Strategies: safety protocols, training, and
monitoring systems to manage and reduce
risks.
Regulatory and
Legislative
Compliance		 Risks of non-compliance with evolving
legal and regulatory requirements.		 Policy reviews, training, and legal oversight
to ensure compliance.
Governance and
Strategic
Oversight		 Risks related to leadership transitions and
board capacity.		 Succession planning, recruitment, and
enhanced governance reporting.
Technology and
Data Integrity		 Risks from cybersecurity threats,
fragmented systems, and data quality
issues.		 Security testing, a new IT strategy, and data
governance improvements.

Reserves policy and going concern

Reserves are needed to innovate solutions for our stakeholders (residents, participants and commissioners) and bridge the funding gaps between spending on services and recovering these from subsidiaries by providing working capital. In addition, reserves are required to facilitate investment in fixed assets in the form of properties for leasing to subsidiaries for the provision of their services. Reserves are also held to cover risks SIG and the group face, including loss of contract income. The trustees evaluated the commitment to future expenditure against likely future income streams and believe that a regular review of reserve

19

Social Interest Group Trustee Report Year ended 31 March 2025

levels is appropriate. All SIG charities aim to make a small surplus for retention and reinvestment purposes, which increases the free reserves. The trustees reviewed the reserves policy in light of the relevant guidance on the established level of reserves (those funds that are freely available) that the charity and group ought to have at any given time.

The trustees evaluated the commitment to future expenditure against likely future income streams, weighing each element according to size, probability, spread of risk and operational impact. During the year, the trustees reviewed the level of reserves required in light of the ongoing challenging financial environment. The trustees agreed that the free reserves (excluding the Pension Reserve) target should be approximately £792k, and for the group, £1.9m. The charity needs to maintain sufficient funds to cover any potential loss in income and short-term cash flow, have approximately three months of expenditure available at all times, and cover costs in the event of the charity winding up. The unrestricted free reserves of the charity are £839k (£643k at 31st March 2024). The group has unrestricted free reserves, excluding the Pension reserve of £4,072 at 31 March 2025 (£3,540k at 31st March 2024). Actions to strengthen the financial position in the future include diversification of funding, including the growth of the business development team to secure additional funds through fundraising, securing and opening several new projects, and the closure of financially unviable projects. In addition, there are concerted management efforts to increase occupancy, reduce void rates, and minimise the use of expensive agency staff.

After making enquiries, the Board of Trustees has a reasonable expectation that the group has adequate resources to continue in operational existence for at least 12 months from the date ‐ of approval of the financial statements. The group has financial resources, together with long term cash-generating assets. Consequently, the Board of Trustees believes that the group is well-placed to manage its business risks successfully. For this reason, they continue to adopt the going concern basis in preparing the group’s financial statements. The Pension deficit is large, but there is a robust repayment plan to reduce this over time. There are no material uncertainties related to events or conditions that may cause significant doubt about the ability of the group to continue as a going concern, which have been identified by key management personnel after taking into account the relevant facts and circumstances.

20

Social Interest Group Trustee Report Year ended 31 March 2025

Structure, governance and management

The charity is a company limited by guarantee without a share capital (Number 09122052) and is registered as a charity with the Charity Commission (Number 1158402). Its governing instruments are its Articles of Association dated 8 July 2014. All non-executive trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 5 to the accounts.

Appointment of trustees

The trustees are listed on page 3. They hold office for an initial period of three years with the possibility of a second term of three years plus; in exceptional circumstances, where the trustee has specific skills, the board can extend this. The board consists of no fewer than three and no more than nine persons appointed by the members and the executive trustees. No person under the age of 18 may be appointed as a trustee. Trustees are recruited by the Nominations Committee using specialist recruitment agents and by advertisement. A rigorous interview process takes place, which includes residents and participants. Candidates attend board meetings and visit projects before being confirmed for a post by the Chair.

Trustee induction and training

New trustees must familiarise themselves with the content of the Articles of Association, their legal obligations under charity and company law, the organisational structure and its recent financial performance. Trustees are encouraged to attend appropriate external training events that will facilitate the undertaking of their role. All trustees have participated in Safeguarding training.

Related parties and relationships with other organisations

The charity is the parent undertaking of Social Interest Group. It provides all support functions, senior management, and strategic guidance. All Social Interest Group companies support the charity's charitable objectives: SIG Equinox Care, SIG Penrose Options, SIG Investments, SIG Pathways to Independence, SIG Safe Ground, and Milner Gibson Limited.

Remuneration policy for key management personnel

Social Interest Group non-executive trustees set the Group Chief Executive’s remuneration. Their remuneration and all other staff are remunerated in accordance with a job evaluation process and market rates, which external consultants review.

Policy for employment of disabled persons

In April 2019, we became a Disability Confident Employer.

The charity’s policy is not to discriminate against persons covered by the Disability Discrimination Act 1995 for reasons of their disability, whether in or applying for employment or in the delivery of services. The key areas of our policy cover recruitment and employment (disabled applicants not being considered any less favourably on the grounds of their disability), service delivery (disabled applicants and residents and participants not being treated less favourably on account of their disability) and information (ensuring information is accessible to all).

Employee information

The charity takes its investment in its staff’s professional development seriously and aims to provide different learning opportunities. The charity aims to see staff develop and share learning so that value can be added and staff can contribute to our growth and success. We

21

Social Interest Group Trustee Report Year ended 31 March 2025

introduced a new core training programme based around the Care Certificate, which comprises face-to-face and e-learning to ensure all modules are covered.

The trustees would like to thank all staff and volunteers for their hard work and dedication during the year in an extremely challenging climate. We confirm that the charity pays at least the London Living Wage to our employees working in London.

Statement on use of volunteers

At SIG, we greatly value the contributions of our volunteers, who play a vital role in achieving our mission. In the financial year ending 31 March 2024, we engaged five volunteers who collectively contributed 1,352 hours of service. Their efforts enhance our programs and help us maintain a strong connection with the community we serve.

In accordance with the Charities SORP (Statement of Recommended Practice), we recognise that while volunteers are not paid staff, their contributions are essential to our operations. We ensure that all volunteer activities are well-supported and that volunteers receive appropriate training and resources to perform their roles effectively. The impact of our volunteers is not reflected in our accounts.

22

Social Interest Group Trustee Report Year ended 31 March 2025

Statement of responsibilities of the trustees

The trustees (who are also directors of the charity for company law) are responsible for preparing the trustees’ annual report and financial statements in accordance with applicable law and UK Accounting Standards (UK GAAP).

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 the group and of the incoming resources and application of resources, including the income and expenditure, of the group for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose the charity's financial position with reasonable accuracy at all times and enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees are also responsible for safeguarding the charity's and the group's assets and, hence, for taking reasonable steps to prevent and detect fraud and other irregularities.

Insofar as the trustees are aware:

The trustees are responsible for maintaining the integrity of the corporate and financial information on the 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 charity's assets in the event of winding up. The total number of such guarantees at year-end was five (2022: five). The non-executive trustees are members of the charity; the executive trustee is not a member and has no beneficial interest in it.

The trustees’ annual report, which includes the strategic report, was approved by the board of trustees on 10[th] October 2025 and signed on their behalf.

Karl Marlowe

Chair

23

Independent auditor’s report to the members of Social Interest Group

Independent auditor’s report

Opinion

We have audited the financial statements of Social Interest Group (the ‘charitable parent company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2025 which the comprise the group statement of financial activities, the group and charitable parent company balance sheets and statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

24

Independent auditor’s report to the members of Social Interest Group

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report and financial statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

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

25

Independent auditor’s report to the members of Social Interest Group

Responsibilities of trustees

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

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

Auditor’s responsibilities for the audit of the financial statements

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

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

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

We assessed the susceptibility of the charitable company’s financial statements to material

26

Independent auditor’s report to the members of Social Interest Group

misstatement, including obtaining an understanding of how fraud might occur, by:

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

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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

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

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

27

Independent auditor’s report to the members of Social Interest Group

Use of our report

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

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

15 October 2025

28

Social Interest Group Statement of Financial Activities (incorporating an income and expenditure account) For the year ended 31 March 2025

Statement of Financial Activities

Note
Income from:
Donatons and legacies
Charitable actvites
2
Investment Income
Total income
Expenditure on:
Charitable actvites
Total expenditure
3a
Net income for the year
4
Transfer between funds
Other recognised gains and
losses
Actuarial gains / (losses) on
defned beneft pension
schemes
16
Net movement in funds
Reconciliaton of funds:
Total funds brought forward
Total funds carried forward
18a		 Unrestricted
£'000
110
30,722
25
30,857
(29,934)
(29,955)
923
(391)
-
532
3,540
4,072		 Restricted
£'000
-
176
-
176
(176)
(176)
-
-
-
34
34		 Pension
reserve
£'000
-
-
-
-
(162)
-
(162)
391
148
377
(2,914)
(2,537)		 2025
Total
£'000
110
30,898
25
31,033
(30,272)
(30,131)
761
-
148
909
660
1,569		 Unrestricted
£'000
56
27,736
14
27,806
(26,993)
(26,993)
813
-
-
813
2,727
3,540		 Restricted
£'000
-
228
-
228
(228)
(228)
-
-
-
-
34
34		 Pension
reserve
£'000
-
-
250
250
-
-
250
-
(595)
(345)
(2,569)
(2,914)		 2024
Total
£'000
56
27,964
264
28,284
(27,221)
(27,221)
1,063
-
(595)
468
192
660

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 18a to the financial statements.

29

Social Interest Group Balance Sheet For the year ended 31 March 2025

Balance Sheet

The Group

The Charity

2025 2024 2025 2024
Note £’000 £’000 £’000 £’000
Fixed assets
Tangible assets 9 4,404 2,162 105 104
Investments 10 - - 20
-		 20
4,404 2,162 125 124
Current assets
Debtors: Amounts falling due within one year 12 3,864 3,058 1,617 1,751
Debtors: Amounts falling due after one year 12 - - 1,745 1,745
Cash at bank and in hand 2,932 2,665 89 177
6,796 5,723 3,451 3,673
Liabilities
Creditors: amounts falling due within one year 13 (5,007) (4,288) (2,737) (3,154)
Net current assets 1,789 1,435 714 519
Total assets less current liabilities 6,193 3,597 839 643
Creditors: amounts falling due after one year 14 (2,087) (23) - -
Net assets excluding pension liability 4,106 3,574 839 643
Defined benefit pension scheme provision 16 (2,537) (2,914) - -
Total net assets 1,569 660 839 643
The funds of the charity
Restricted income funds 34 34 - -
Unrestricted income funds
Pension Reserve (2,537) (2,914) - -
General Reserve 4,072 3,540 839 643
Total unrestricted funds 1,535 626 839 643
Total charity funds 18a 1,569 660 839 643

Approved by the trustees on 10[th] October 2025 and signed on their behalf by

Karl Marlowe

Chair

Social Interest Group: A company limited by guarantee, Company Registration Number 09122052 (England and Wales)

(England and Wales)

30

Social Interest Group Cash Flow Statements For the year ended 31 March 2024

Cash Flow Statements

Cash fows from operatng actvites:
Net income for the reportng period (as per the
statement of fnancial actvites)
Investment income
Loss on disposal of fxed assets
Depreciaton charges
Movement in long-term pension defcit liability
(Increase)/decrease in debtors
Increase in creditors
Net cash provided by operatng actvites
Cash fows from investng actvites:
Purchase of fxed assets
Investment income
Net cash used in investng actvites
Cashfows from fnancing actvites
Repayment of bank loans
Cash infows from new borrowing
Net cash used in fnancing actvites
Change 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		 909
(25)
21
236
(377)
(806)
507
(2,499)
25
(24)
2,300		 2025
£'000
465
(2,474)
2,276
267
2,665
2,932		 468
(14)
-
194
345
(1,099)
293
(140)
14
(13)
-		 2024
£'000
187
(126)
(13)
48
2,617
2,665

31

Social Interest Group Notes to the Financial Statements For the year ended 31 March 2025

Notes to the Financial Statements

1. Accounting Policies

a) Statutory information

Social Interest Group is a charitable company limited by guarantee and is incorporated in England & Wales. The registered office is 1 Waterloo Gardens, Milner Square, London, N1 1TY.

b) Basis of preparation

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

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

These financial statements consolidate the results of the Charity and its wholly-owned subsidiaries Milner Gibson, Equinox Care, Penrose Options, Pathways to Independence, Safe Ground and SIG Housing Trust on a line by line basis. Transactions and balances between the Charity and its subsidiaries have been eliminated from the consolidated financial statements. Balances between the Charity and subsidiary companies are disclosed in the notes of the Charity’s balance sheet. A separate statement of financial activities, or income and expenditure account, for the Charity itself is not presented because the Charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006. The net income for Social Interest Group was a surplus of £196k (23/24 surplus £176k).

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

c)

Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

d)

Going concern

The Board assess whether the use of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of SIG to continue as a going concern. The Trustees make an assessment in respect of a period of at least one year from the date of authorisation for the issue of the financial statements.

It has taken account of the current economic situation, (including the effect of the increase in employers national insurance, and the increases to London Living Wage and Living Wage) within an environment of constrained commissioner budgets. We have considered the impact of this for the Group's activities, including the effect on our residents, participants, staff and funders, and our steps to mitigate any adverse impact. The Board has also considered the ability of the Group to absorb the impact of the revaluation of pension deficit, and the potential loss of contracts as they fall due.

The Trustees judge it is appropriate for the Group to continue to prepare its financial statements on the going concern basis and that the uncertainty noted above does not cast significant doubt on that conclusion. The Board also judges that the Group has adequate resources to continue in operational existence for the foreseeable future and thus it continues to adopt the going concern basis of accounting in preparing these financial statements.

Income

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

32

Social Interest Group Notes to the Financial Statements For the year ended 31 March 2025

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.

The Group is not involved in active fundraising, but does accept donations via Enthuse. No complaints have been received regarding fundraising activities.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

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.

Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund. Unrestricted funds are donations and other income received or generated for the charitable purposes.

Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal 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. Expenditure on charitable activities includes the costs of delivering services undertaken to further the purposes of the charity and their associated support costs. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Expenditure on charitable activities

The expenditure on charitable activities relates to the support services provided to the Charity’s charitable subsidiaries in supporting our beneficiaries. A breakdown of the governance and support costs is provided.

The Group resources expended in directly providing the main services of Group companies are analysed as activities in the furtherance of the entities’ objects. A liability is recognised when a legal or constructive obligation is entered into by a Group company. In accordance with the Charities SORP (FRS l 02), volunteer time is not recognised so refer to the trustees' annual report for more information about their contribution.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases. Rental charges are charged on a straight line basis over the term of the lease.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £1,000. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.

33

Social Interest Group Notes to the Financial Statements For the year ended 31 March 2025

Investment properties

Investment properties are measured initially at cost and subsequently included on the balance sheet at fair value. Investment properties are not depreciated. Any change in fair value is recognised in the statement of financial activities.

Debtors

Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid. Judgement is made around the recoverability of debt and a provision is made based on the age and type of debt. Former resident arrears are provided for in full, whilst current resident arrears are provided for based on age and circumstances.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Cash balances exclude any funds held on behalf of residents and participants.

Creditors and provisions

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 recognised at their settlement amount. Dilapidation provisions are held in the balance sheet at the year end, based on the estimates of cost of returning the property to the landlord at the end of the lease.

Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

34

Social Interest Group Notes to the Financial Statements For the year ended 31 March 2025

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

Pensions

Group companies make contributions into a defined benefit pension scheme, which is now closed to new SIG entrants, and a number of defined contribution schemes. For financial years ending on or before 28 February 2019, it has not been possible for the Group to obtain sufficient information to enable it to account for the Scheme as a defined benefit scheme, therefore the Group has accounted for the Scheme as a defined contribution scheme.

For financial years ending on or after 31 March 2019, it is possible to obtain sufficient information to enable the Group to account for the Scheme noted above as a defined benefit scheme. For accounting purposes, an actuarial valuation for the scheme was carried out with effective date of 31 March 2022. The liability figure from the valuation is rolled forward to the relevant accounting date and are used in conjunction with the Group's fair share of the Scheme's total assets to calculate the Group's net deficit or surplus at the accounting period start and end dates.

In addition, the Group, on the acquisition of Pathways To Independence Ltd, took over a further defined benefit pension scheme for current and former employees of Pathways who were part of the Kent County Council Pension Fund, which itself is part of the Local Government Pension Scheme. The pension scheme is closed to new members. It is a funded scheme and the assets are held separately from those of the Group in separate Trustee administered funds.

Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent term and currency to the liabilities.

The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to operating surplus are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred.

Net interest on the net defined benefit liability/asset is also recognised in the statement of financial activities and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations.

The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses.

Actuarial gains and losses are recognised immediately in other recognised gains and losses.

Safe Ground, has a defined contribution retirement benefit scheme. Contributions are therefore charged as an expense as they fall due.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as incurred.

Provisions

Provisions are recognised when the charity has a legal or constructive present obligation as a result of a past event, it is probable that the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

35

Social Interest Group Notes to the Financial Statements For the year ended 31 March 2025

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.

2 Income

Charitable activities – supporting vulnerable people

The Group’s charitable activities are to relieve people in need, including but not limited to those with mental health illness, those currently living with substance use or other addictive behaviour patterns, people experiencing homelessness, people and households on low incomes, people with experience of the criminal justice system, older, disabled (whether physically or mentally) or chronically sick. This is achieved by providing support in the form of housing, or accommodation, or services, including but not limited to medical, social, welfare, rehabilitative, resettlement, care services, education, training, employment, mentoring and other similar services.

The Group's income is predominantly contractual income from local authorities and NHS Trusts, and rental income and service charges from residents.

36

Social Interest Group Notes to the Financial Statements For the year ended 31 March 2025

3a Analysis of expenditure (current year)

27,

Staff costs (Note 5)
Recruitment & training
Subsistence & travel
Premises Costs
Office running costs
Insurance
Information technology
Legal & Professional
Depreciation
Audit fees
Other Costs
Total expenditure 2025
Support costs
Governance costs
Total expenditure 2024		 Charitable
activities
£'000
16,449
-
81
4.036
774
-
-
-
235
-
3,056
24,631
5,574
67
30,272
27,221		 Governance
costs
£'000
-
-
-
-
-
-
-
-
-
67
-
67
-
(67)
-
-		 Support
costs
£'000
3,917
356
25
113
157
261
502
219
-
-
24
5,574
(5,574)
-
-
-		 2025
Total
£'000
20,366
356
106
4,149
931
261
502
219
235
67
3,080
30,272
-
-
30,272		 2024
Total
£'000
17,746
373
99
4,128
742
218
527
197
194
69
2,928
-
-
27,221

37

Social Interest Group Notes to the Financial Statements For the year ended 31 March 2025

3b Analysis of expenditure (previous year)

Staff costs (Note 5)
Recruitment & training
Subsistence & travel
Premises Costs
Office running costs
Insurance
Information technology
Legal & Professional
Depreciation
Audit fees
Other Costs
Total expenditure 2023
Support costs
Governance costs		 Charitable
activities
£'000
14,252
-
78
4,002
440
-
-
-
194
-
2,540
21,506
5,284
431
27,221		 Governance
costs
£'000
-
-
-
-
-
-
-
-
-
69
362
431
-
(431)
-		 Support
costs
£'000
3,494
373
21
126
302
218
527
197
-
-
26
5,284
(5,284)
-
-		 2024
Total
£'000
17,746
373
99
4,128
742
218
527
197
194
69
2,928
27,221
-
-
27,221

38

Social Interest Group Notes to the Financial Statements For the year ended 31 March 2025

4 Net income / (expenditure) for the year

This is stated after charging :

2025 2024
£’000 £’000
Depreciation 235 194
Operating lease rentals:
Property 3,998 4,002
Auditor's remuneration (including VAT):
Audit
- Current year Group 20 18
- Current year Subsidiaries 53 51
Salaries and wages
Redundancy and termination costs
Social security costs
Employer’s contribution to defined contribution pension schemes
Operating costs of defined benefit pension schemes
Agency costs		 2025
£’000
14,828
198
1,376
323
22
3,619
20,366		 2024
£’000
11,993
-
1,147
272
21
4,313
17,746

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

2025 2024
No. No.
£60,001 - £70,000 1 2
£70,001 - £80,000 6 3
£110,001 - £120,000 1 1
£120,001 - £130,000 - 1
£290,001 - £300,000 1 -

The Non-Executive Trustees (directors for company law purposes) received no remuneration during the year. During the year non- executive trustees were reimbursed travel expenses incurred in the performance of their duties of £636 (2024: £720). The Executive Trustee (a director for company law purposes), as permitted by the Articles of Association, received during the year £295,171 (2023/24 - £128,750).

The total employee benefits (including pension contributions and employer’s national insurance) of the key management personnel were £982,979 (2024: £769,067). The key management personnel comprise the Trustees, the Group Chief Executive, Director of Finance & Resources, Directors of Operations, Director of People & Culture, Director of Compliance, Internal Audit and Risk, Director of External Affairs, Director of Housing & Maintenance and the Director of Development , Marketing & Communications.

Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 530 (2024: 465).

2025 2024 No. No.

6

39

Social Interest Group Notes to the Financial Statements For the year ended 31 March 2025

Operational staff
Management and support staff		 486
44
530		 422
43
465

7 Related party transactions

The Charity made charges to its subsidiaries to recover the cost of providing support services: Penrose £3,850,873 (2024: £3,504,122), Equinox £1,193,797 (2024: £1,370,875), Pathways £621,158 (2024: £438,822), SIG Housing Trust £10,728 (2024: £10,728) and SIG Safe Ground £99,570 (2024: £240,355). At year end the Charity owed £2,215,399 to Penrose Options (2024: £2,562,074), was owed £2,215,016 from Equinox Care (2024: was owed £2,404,574), was owed £85,981 to Pathways (2024: owed £41,711), was owed £430,000 from SIG Housing Trust as a loan (2024 was owed £430,000) and is owed by SIG Housing Trust £227,203 (2024: was owed £146,409) and was owed £46,309 (2024: £200,923) from Safe Ground.

Gill Arukpe was a director of Milner Gibson Limited; Michael Rutherford was the Company Secretary of all group companies. They were employed by Social Interest Group, as (from 17[th] February 2025) is Cathy Kane, a director of all group companies. .

8 Taxation

The Charity is exempt from Corporation Tax as all its income is charitable and is applied for charitable purposes. The Charity and its subsidiaries are registered for VAT although the vast majority of their outputs are exempt and therefore the majority of VAT on purchases is irrecoverable.

40

Social Interest Group Notes to the Financial Statements For the year ended 31 March 2025

9 Tangible fixed assets - Group

Cost
At the start of the year
Additions in year
Disposals in year
At the end of the year
Depreciation
At the start of the year
Charge for the year
Released in year
At the end of the year
Net book value
At the end of the year
At the start of the year		 Computer
equipment
£'000
273
40
-
313
229
22
-
251
62
44		 Fixtures &
fittings
£'000
602
21
(33)
590
505
41
(33)
513
77
97		 Lease
improvements
£'000
972
39
(45)
966
502
114
(24)
592
374
470		 Motor
Vehicles
£'000
51
-
-
51
37
7
-
44
7
14		 Freehold
Property
£'000
1,600
2,399
-
3,999
63
52
-
115
3,884
1,537		 Total
£'000
3,498
2,499
(78)
5,919
1,336
236
(57)
1,515
4,404
2,162

41

Social Interest Group Notes to the Financial Statements For the year ended 31 March 2025

9 Tangible fixed assets - Charity

Cost
At the start of the year
Additions in year
At the end of the year
Depreciation
At the start of the year
Charge for the year
At the end of the year
Net book value
At the end of the year
At the start of the year		 Computer
equipment
£'000
271
40
311
227
22
249
62
44		 Fixtures &
fittings
£'000
7
-
7
7
-
7
-
-		 Lease
improvements
£'000
198
-
198
138
17
155
43
60		 Motor
Vehicles
£'000
9
-
9
9
-
9
-
-		 Total
£'000
485
40
525
381
39
420
105
104

42

Social Interest Group Notes to the Financial Statements For the year ended 31 March 2025

10 Fixed assets investments and subsidiary undertakings

At the start of the year
At the end of the year		 2025
£'000
20
20		 2024
£'000
20
20

The charity owns the entire issued share capital of Milner Gibson Limited, a company registered in England (registered number 8741792), which is held as a fixed asset investment. It is also the sole member of Equinox Care, a company registered in England (registered number 2114430), which is a registered charity (number 296694), Penrose Options, a company registered in England (registered number 8466743), which is a registered charity (number 1151455), SIG Housing Trust, a company registered in England (registration number 9918302), which is a registered charity (number 1166811), Pathways to Independence, a company registered in England (registration number 1859070), which is a registered charity (number 292579) and Safe Ground a company registered in England (registration number 3030847), which is a registered charity (number 1048181). All subsidiaries’ activities have been consolidated on a line by line basis in the statement of financial activities. Milner Gibson Limited did not trade in the year. After the year end Milner Gibson began trading and started to supply the other Group entities with night concierge.

The charity provides strategic guidance, development, management and back office support services to its subsidiary undertakings. It aims to promote and improve the efficiency and effectiveness of its charitable subsidiaries in fulfilling their charitable objectives. Equinox and Penrose provide similar support services to a variety of residents and participants and their families.

A summary of the results of the subsidiaries is shown below:

Pathways to Pathways to
Equinox Penrose Independence
Year ended 31 March 2025 2024 2025 2024 2025 2024
£’000 £’000 £’000 £’000 £’000 £’000
Total income 7,180 7,780 20,948 17,867 2,336 2,072
Total expenditure (6,986) (7,680) (20,535) (17,202) (2,300) (1,996)
Net
income/(expenditure) 194 100 413 665 36 76
Pension adjustment (42) (391) (27) (212) 7 8
Net movement in
funds 152 (291) 386 453 43 84
Milner Gibson SIG Housing Trust Safe Ground
Year ended 31 March 2025 2024 2025 2024 2025 2024
£’000 £’000 £’000 £’000 £’000 £’000
Total income - - 380 376 659 560
Total expenditure - - (358) (355) (554) (527)
Net
income/(expenditure) - - 22 21 105 33
Pension adjustment - - -
-		 - - -
Net movement in
funds - - 22 21 105 33

43

Social Interest Group Notes to the Financial Statements For the year ended 31 March 2025

Year ended 31 March
Assets
Liabilities
Pension Provision
Funds
Year ended 31 March
Assets
Liabilities
Funds		 Equinox
2025
2024
£’000
£’000
1,537
1,567
(3,687)
(3,737)
(2,153)
(2,285)
(4,303)
(4,455)
Milner Gibson
2025
2024
£’000
£’000
-
20
-
-
-
20		 Penrose
2025
2024
£’000
£’000
8,357
5,488
(5,221)
(2,500)
(384)
(622)
2,752
2,366
SIG Housing Trust
2025
2024
£’000
£’000
798
694
(659)
(577)
139
117		 Pathways to
Independence
2025
2024
£’000
£’000
2,538
2,187
(594)
(280)
-
(7)
1,944
1,900
Safe Ground
2025
2024
£’000
£’000
452
401
(252)
(306)
200
95		 Pathways to
Independence
2025
2024
£’000
£’000
2,538
2,187
(594)
(280)
-
(7)
1,944
1,900
Safe Ground
2025
2024
£’000
£’000
452
401
(252)
(306)
200
95
95

11 Parent charity The parent charity’s gross income and the results for the period are disclosed as follows:

Gross Income
Results for the period
Debtors
Trade Debtors
Staff loans
Amounts due from group
undertakings
Other debtors
Prepayments
Accrued income		 Group
2025
2024
£000
£000
2,739
1,926
27
13
-
-
229
190
669
607
200
322
3,864
3,058		 2025
2024
£'000
£'000
5,847
5,592
196
176
Charity
2025
2024
£000
£000
21
14
-
-
3,005
3,182
-
39
336
250
-
11
3,362
3,496		 2025
2024
£'000
£'000
5,847
5,592
196
176
Charity
2025
2024
£000
£000
21
14
-
-
3,005
3,182
-
39
336
250
-
11
3,362
3,496
3,496

12 Debtors

£1,745,000 (2024: £1,745,000) of amounts due from group undertakings are receivable in more than 12 months.

13 Creditors: amounts falling due within one year

Group Charity
2025 2024 2025 2024
£000 £000 £000 £000
Bank Loans 189 15 - -
Amount due under group
undertakings - - 2,215 2,604
Trade creditors 868 1,365 124 398
Taxation and social security 392 299 27 23
Pension contributions 143 113 - -

44

Social Interest Group Notes to the Financial Statements For the year ended 31 March 2025

Other creditors
Deferred Income
Accruals
Deferred Income
Balance at 1 April 2024
Amount released to income
Amount deferred in year
Balance at 31 March 2025		 1,042
1,216
552
176
1,821
1,104
5,007
4,288
Group
2025
2024
£000
£000
176
174
(145)
(126)
521
128
552
176		 22
14
-
-
349
115
2,737
3,154
Charity
2025
2024
£000
£000
-
-
-
-
-
-
-
-		 14
-
115
3,154
-

14 Creditors: amounts falling due after more than one year

Bank Loans
15
Loans and overdrafts
Bank Loans
Payable within one year
Within one to two years
Within two to five years
In 5 years or more		 Group
2025
2024
£'000
£'000
2,087
23
2,087
23
Group
2025
2024
£'000
£’000
2,276
38
189
15
189
23
567
-
1,331
-
2,276
38		 Group
2025
2024
£'000
£'000
2,087
23
2,087
23
Group
2025
2024
£'000
£’000
2,276
38
189
15
189
23
567
-
1,331
-
2,276
38
15
23
-
-
38

The housing loans are secured by specific charges on the housing properties of SIG Penrose and SIG Pathways. The loans are repayable by monthly instalments over a 25 year term. At 31 March 2025, the company had no undrawn loan facilities.

Interest is charged on the loan at 2.45% above the Reliance Banks published base rate.

16 Pension Scheme

The Group is a member of 3 defined benefit schemes, SIG Penrose and SIG Equinox are member of The Pensions Trust – Social Housing Pension Scheme, whilst SIG Pathways is a member of the Kent LGPS scheme. Details of each scheme is given below.

Reconciliation to Balance Sheet amount

Reconciliation to Balance Sheet amount
2025 2024
£’000 £’000
SIG Penrose (384) (622)
SIG Equinox (2,153) (2,285)
SIG Pathways - (7)

45

Social Interest Group Notes to the Financial Statements For the year ended 31 March 2025

(2,537) (2,914)

Total

The Pensions Trust - Social Housing Pension Scheme (“Scheme”)

Penrose and Equinox participate in the Scheme, a multi-employer scheme which provides benefits to some 500 non- associated employers. The scheme is a defined benefit scheme in the UK.

For financial years ending on or before 28 February 2019, it had not been possible for the charity to obtain sufficient information to enable it to account for the Scheme as a defined benefit scheme, therefore the charity accounted for the Scheme as a defined contribution scheme.

For financial years ending on or after 31 March 2019, it is possible to obtain sufficient information to enable the charity to account for the Scheme as a defined benefit scheme. For accounting purposes, an actuarial valuation for the scheme was carried out with effective date of 31 March 2018. The liability figure from the valuation is rolled forward to the relevant accounting date and is used in conjunction with the charity's fair share of the Scheme's total assets to calculate the charity's net deficit or surplus at the accounting period start and end dates.

The Scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension scheme in the UK.

The last triennial valuation of the Scheme overall for funding purposes was carried out as at 30 September 2020. This valuation revealed a deficit of £1,522m. A Recovery Plan has been put in place with the aim of removing this deficit by 30 September 2026. The Scheme is classified as a 'last-man standing arrangement'. Therefore, the charities are potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the Scheme. Following consultation between the Pension Trustees and Employers, a new recovery plan to recover the overall scheme deficit has been agreed. This is based on a full share of liabilities approach. This is effective from 1 April 2019.

SIG Penrose and SIG Equinox were notified in 2021 by the Trustee of the Scheme that it has performed a review of the changes made to the Scheme’s benefits over the years and the result is that there is uncertainty surrounding some of these changes. The Trustee is seeking clarification from the Court on these items, and this process is ongoing with the Court’s determination expected no earlier than Summer 2025. It is estimated that this could potentially increase the value of the full Scheme liabilities by £155m. We note that this estimate has been calculated as at 30 September 2022 on the Scheme’s Technical Provisions basis. Until the Court direction is received, it is unknown whether the full (or any) increase in liabilities will apply and therefore, in line with the prior year, no adjustment has been made in these financial statements in respect of this.

Number of active members in the scheme
Active
Deferred
Pensioners
Rate of discount
Price inflation (RPI)
Price inflation (CPI)
Earnings increases
Allowance for commutation of pension for cash at retirement		 2025
2024
No.
No.
2
4
131
135
72
67
2025
2024
%pa
%pa
6.15
5.20
3.09
3.15
2.79
2.78
3.79
3.78
75%
75%

46

Social Interest Group Notes to the Financial Statements For the year ended 31 March 2025

The discount rate has been increased by 0.3% from the base assumption used by the actuary in deriving the overall deficit position. This is due to the fact the discount rate does not reflect returns that can be achieved in other long term products that can be purchased by SIG Penrose and SIG Equinox.

Other material assumptions
Life expectancies in retirement: Years Years
Male currently aged 65 20.5 20.50
Female currently aged 65 23.0 23.00
Male currently aged 45 21.7 21.80
Female currently aged 45 24.5 24.40

Present values of defined benefit obligation, fair value of assets and defined benefit liability

Fair value of plan assets
Present value of defined benefit obligation
Net defined liability to be recognised		 2025
£’000
9,796
(12,333)
(2,537)		 2024
£’000
10,416
(13,323)
(2,907)

Reconciliation of Opening and Closing Balances of Defined Benefit Obligation

Opening fair value of employer assets
Interest Income
Experience on plan assets
Contributions by the employer
Benefits paid and expenses
Closing fair value of employer assets		 2025
£’000
10,416
535
(918)
392
(629)
9,796		 2024
£’000
10,867
529
(917)
382
(445)
10,416

Reconciliation of Opening and Closing Balances of Defined Benefit Obligation

8

2025
£’000
Opening defined benefit obligation
13,323
Expenses
21
Interest cost
676
Actuarial losses / (gains)
(1,058)
Benefits paid and expenses
(629)
Closing defined benefit obligation
12,333
Defined benefit costs recognised in the statement of financial activities (SOFA)
2025
£’000
Actuarial gain on plan obligations
1,058
Actuarial gain / (loss) on plan assets
(918)
Defined benefit income / (costs) recognised in the SOFA
140		 2024
£’000
13,418
20
644
(314)
(445)
13,323
2024
£’000
314
(917)
(603)

47

Social Interest Group Notes to the Financial Statements For the year ended 31 March 2025

(820) (746)

Actual return on plan assets

Retirement benefit schemes - Pathways

Defined contribution scheme

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

Defined benefit schemes

The charity operates a pension scheme providing benefits based on final pensionable pay for 1 employee and 8 ex-employees. The assets of the scheme are held separately from those of the charity, being invested in an independently administered fund. The charity is an employing body within the Kent County Council Pension Fund which itself is part of the Local Government Pension Scheme. The contributions are determined by a qualified actuary on the basis of triennial valuations using the projected unit method. The most recent valuation was at 31 March 2022.

The independent actuary also prepares an annual valuation specific to the Charity for the sole purpose of accounting and reporting details of the Fund under the provisions of Financial Reporting Standard (FRS102) and the details that follow are drawn from that report for the year ended 31 March 2025. The accounts are prepared under the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). It should be noted that the figures presented are only for the purposes of FRS 102 and have no validity in other circumstances. ln particular, they are not relevant for calculation undertaken for funding purposes or for other statutory purposes under UK legislation.

The pension charge for the year was £16,930 (2023/24 - £11,890) and is shown under pension costs; defined benefit, in Note 5. The contributions of the company for the year were 19.50% and employees are 6.8% and 6.5%.

Number of active members in the scheme

2025 2024
No. No.
Active 1 1
Deferred 3 3
Pensioners 5 5

Other information

Principal actuarial assumptions at the Balance sheet date (expressed as weighted averages):

Key assumptions
Discount rate
Expected rate of increase of pensions in payment
Expected rate of salary increases
Other material assumptions
Life expectancies in retirement:
Male currently aged 65
Female currently aged 65
Male currently aged 45
Female currently aged 45		 2025
2024
%
%
5.75
4.90
3.90
3.95
2.90
2.95
Years
Years
20.7
20.8
23.3
23.3
22.0
22.0
24.7
24.7

48

Social Interest Group Notes to the Financial Statements For the year ended 31 March 2025

2025
£’000
Fair value of plan assets
1,300
Present value of defined benefit obligation
1,177
Effect of asset ceiling
(123)
-
Net defined liability to be recognised
-
Reconciliation of opening and closing balances of the fair value of plan assets
2025
£’000
Opening fair value of employer assets
1,277
Interest income
62
Experience on plan assets
(21)
Contributions by the employer
15
Contributions by scheme members
2
Benefits paid and expenses
(35)
1,300
The fair value of plan assets at the reporting period end was as follows:
2025
£’000
Debt Instruments
387
Equity Instruments
807
Property
106
1,300
Reconciliation of opening and closing balances of defined benefit obligation
2025
£’000
Opening defined benefit obligation
1,284
Current service cost
10
Interest cost
62
Actuarial losses / (gains)
(146)
Benefits paid and expenses
(35)
Other
2
Closing defined benefit obligation
1,177
Defined benefit costs recognised in the statement of financial activities (SOFA)
2025
£’000
Current service cost
10
Net interest expense
-
Other costs and income
-
Defined benefit costs recognised in the SOFA
10
Amounts taken to other comprehensive income
2025
£’000		 2024
£’000
1,277
(1,284)
-
(7)
2024
£’000
1,248
60
(13)
14
2
(33)
1,277
2024
£’000
363
799
115
1,277
2024
£’000
1,266
10
60
(21)
(33)
2
1,284
2024
£’000
10
-
1
11
2024
£’000

49

Social Interest Group Notes to the Financial Statements For the year ended 31 March 2025

Return on scheme assets excluding interest income
Actuarial changes related to obligations
Effect of asset ceiling
17a
Analysis of net assets between funds (current year)
General
unrestricted
Pension
Reserve
Restricted
£’000
£’000
£’000
Tangible fixed assets
4,404
-
-
Investments
-
-
-
Net current assets
1,679
-
34
Long Term liabilities
(2,087)
-
-
Defined benefit pension
provision
-
(2,537)
-
Net assets at 31 March
2025
3,996
(2,537)
34		 Return on scheme assets excluding interest income
Actuarial changes related to obligations
Effect of asset ceiling
17a
Analysis of net assets between funds (current year)
General
unrestricted
Pension
Reserve
Restricted
£’000
£’000
£’000
Tangible fixed assets
4,404
-
-
Investments
-
-
-
Net current assets
1,679
-
34
Long Term liabilities
(2,087)
-
-
Defined benefit pension
provision
-
(2,537)
-
Net assets at 31 March
2025
3,996
(2,537)
34		 (21)
(13)
146
21
(123)
-
2
8
Total funds
Charity
unrestricted
funds
£’000
£’000
4,404
105
-
20
1,713
714
(2,087)
-
(2,537)
-		 (13)
21
-
8
3,996
(2,537)
34		 1,493
839

17b Analysis of net assets between funds (prior year)

Tangible fixed assets
Investments
Net current assets
Long Term liabilities
Defined benefit pension
provision
Net assets at 31 March
2024		 General
unrestricted
Pension
Reserve
Restricted
Total funds
Charity
unrestricted
funds
£’000
£’000
£’000
£’000
£’000
2,162
-
-
2,162
104
-
-
-
-
20
1,401
-
34
1,435
519
(23)
-
-
(23)
-
-
(2,914)
-
(2,914)
-
3,540
(2,914)
34
660
643

18a Movements in funds (current year)

At 1
April Income & Expenditure & Transfer At 31 March
2024 gains losses s 2025
£’000 £’000 £’000 £’000 £’000
Restricted funds:
Roots for Life 3 - - - 3
Skills for Care 1 - - - 1
Lottery - Roots - 93 (93) - -
Roots Garden - 16 (16) - -
Roots Connects - 16 (16) - -
Roots Food for
thought - 32 (32) - -
RBKC refuge - 4 (4) - -
Community
response fund
(Luton) - 13 (13) - -
CO-OP 2 (2) - -

50

Social Interest Group Notes to the Financial Statements For the year ended 31 March 2025

-
Move on fund
30
Total restricted
funds
34
General funds
3,540
Pension reserve
(2,914)
Total funds
including pension
fund
660
The narrative to explain the purpose
Movements in funds (prior year)
At 1
April
2023
£’000
Restricted funds:
Roots for Life
3
Skills for Care
1
Lottery - Roots
-
Cost of living
workshops
-
Community response
fund (Luton)
-
Community
engagement
-
Move on fund
30
Total restricted
funds
34
General funds
2,727
Pension reserve
(2,569)
Total funds including
pension fund
192		 -
-
176
30,857
7
31,040
of each fund is
Income &
gains
£’000
-
-
193
4
27
4
-
228
27,806
-
28,034		 -
-
-
-
(176)
-
(29,955)
(370)
-
370
(30,131)
-
given at the foot of the note below.
Expenditure &
losses
Transfer
s
£’000
£’000
-
-
-
-
(193)
-
(4)
-
(27)
-
(4)
-
-
-
(228)
-
(26,993)
-
(345)
-
(27,566)
-		 30
34
4,072
(2,537)
1,569
At 31 March
2024
£’000
3
1
-
-
-
-
30
34
3,540
(2,914)
660

18b Movements in funds (prior year)

Transfers

During the year, SIG Penrose and SIG Equinox makes contributions towards the pension deficit of the pension scheme. These are recognised in the year as they are incurred, and are transferred in the year to show the effect on the overall liability.

Purposes of restricted funds

A. Tesco - Bags of Help awarded a grant specifically to be used on Roots for Life.

B. Skills for Care - This is a programme of work related to the Assessed and Supported Year in Employment.

C. Lottery – Roots – The grant is used to fund the works of the Roots to Recovery project in Luton and Bedford.

D Cost of living workshops – The workshops provide advice and guidance to help individuals to develop a personal toolkit of knowledge and skills as they prepare for independent living.

E Community response fund (Luton) – to fund an activities coordinator in a service.

51

Social Interest Group Notes to the Financial Statements For the year ended 31 March 2025

F. Community Engagement - NHS - ICB grant. This is grant funding from the Health Inequalities Small Grants Funding Programme to undertake community engagement or other similar work aiming to produce insight or reduce inequalities.

G. Move on fund - This fund is used to provide support to residents who are moving on from our service. This can be a contribution towards a deposit or for white goods.

H. CO-OP. This grant was used to purchase silent disco equipment for Solace project.

19 Analysis of changes in net debt

Cash at bank and in hand
Loans falling due within one year
Loans falling due after more than one year		 At 1 April
2024
£’000
2,665
(15)
(23)
2,627		 Cash flows
£’000
267
(174)
(2,064)
(1,971)		 At 31
March
2025
£’000
2,932
(189)
(2,087)
656

20a Operating lease commitments - Group

The group's total future minimum lease payments under non-cancellable building operating leases is as follows for each of the following periods

Less than one year
One to five years
Over five years		 2025
£’000
2,532
1,971
1,455
5,958		 2024
£’000
3,405
3,083
3,519
10,007

20b Operating lease commitments - Charity

The charity's total future minimum lease payments under non-cancellable building operating leases is as follows for each of the following periods.

Less than one year 2025
£’000
50
50		 2024
£’000
47
-

21 Operating lease commitments receivable as a lessor - Group Amounts receivable by the charity under non-cancellable building operating leases are as follows for each of the following periods

of the following periods
Less than one year
One to five years		 2025
£’000
60
-
60		 2024
£’000
10
3
13

52

Social Interest Group Notes to the Financial Statements For the year ended 31 March 2025

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

53

Social Interest Group Notes to the Financial Statements For the year ended 31 March 2025

| Company no. 0 9122052

54 : Safe Ground all