Charty registration number: 1161382 Hugs Children's Cancer Charity CIO Annual Report and Flnancial Statements for the Year Ended 30 Aprll 2025 WESTCOTTS CHAfiTERED ACCOUF4TANT$ a BU¥INE$S ADviseRS
Hugs Children's Cancer Charity CIO Contents (continued) Reference and Administrative Details Trustees, Report 2to11 Independent Ex8minerfs Report 12 Statement of Financial Activities 13 Balance Sheet 14 Cash Flow Statement 15 Notes to the Financial Statements 16to26
Hugs Children's Cancer Charity CIO Reference and Administrative Details Chairman Ade Edwards Chlef Executlve Officer Elsbeth Hallam, Co-founder Trust888 Vicky Reeve Zoe Edwards Michael Hallam Kelly Heatley Ade Edwards Charfty Reglstratlon Number 1161382 Prfnclpal Office PO Box 164 Plymouth Devon PL19EP Westcotts (SW) LLP Independent examiner Plym House 3 Longbridge Road Marsh Mills Plymouth Devon PL6 8LT Independent Examlner Sollcltor8 GA Solicitors 25 Lockyer Street Plymouth PL12QW Bankers Barclays Bank Plymouth 140-146 Armada Way Plymouth Devon PL11LA Page 1
Hugs Children's Cancer Charity CIO Trustees. Report The trustees present the annual report together with the financial statements of the charty for the year ended 30 April 2025. Objectlves and activities Objects and alms The charity objectives are as foll0v.. The relief of sicknéss and tha preseNation of héalth of childrén and young people suffértng from Neuroblasloma or childhood cancer, in particular but not exclusively by the provision of respitelholiday home, and emotion81 support and the provision of group social events for them and their families. WHAT HAVE WE ACHIEVED THIS YEAR? Hugs Children's Cancer Charity has delivered the following activities for the public benefit which are in accord with our charitable objects and aims: The respite home continues to provide unique breaks for families affected with childhood cancer. The property is well-maintained, safe, accessible, and well resourced to provide the families with 8 relaxing and luxurious break. This year we have also invested in 8 new shower room on the ground floor to further support the use of the property for users with physical disabilities, Emotional support and peer-to-peer support is provided through our family liaison officer. Elsbeth Hallam, who speaks to many families locally and nationally, providing one to one advice and emotional support. Elsbeth, also manages social media groups to support families with childhood cancer in Devon and Comwall. She uses social media to connect with families throughout the UK as a reach out service. Her infomiation 18 also given to newly diagnosed families alongside a voucher. We have provided emotional support and delivered "cara packs. to the families affected by childhood cancer within Plymouth Derriford Hospital, Bristol Children's Hospital, Treliske and Royal Devon and Exeter Hospitals. Our family support worker, Elsbeth, also continues to visit hospitals nationally to support families with neuroblastoma. The care packs generally consist of small treats. pyjama's, toiletries and food vouchers for the family. We continue to provide seasonal gifts of Easter eggs and luxury Hampers and gifts at Christmas to hospitals in the South West of England and hand delivered parcels and presents to families in the community, including our bereaved families. We have regularty provided new toys to the hospital play departments and treasure chest toys for any child having smal treatments, procedures and tests. The chariiy has organized group events and coffee momings for families, induding private cinema screenings and our annual Christmas party. This provides families with the opportunity to meet other people who have also been in similar situations, important pe8r-to-pe8r Éupport for th8 who18 family. Funded events for individualc and Giblingc includc go karting and airsoft, and we hope to continue and grow this into 2026 utilizing the Hugs Hub. The charity has been nominated for several awards this year including the Charity of the Year for both the West Country Women awards and the Great British Communty Awards. In April 2025 we opened our first Hugs Hub, a wellness Centre for families to visit for peer to peer support, formal counselling and play therapy. The mental health support has been well utilised, especially by sibling5 who are often sidelined when a child is diagnosed with cancer. Page 2
Hugs Children's Cancer Charity CIO Trustees, Report (continued) Elsbeth often travels to meet with families in hospital, giving families one-to-one in person emotional support, ensuring that each individual is provided with unique and supportive care, adapted around their own individual treatment plans and cancerjoumeys OUR VISION FOR 2026 This year we have conducted an impact survey and the results of this have shown that what we are providing is popular and well needed. We therefore have looked at the vision for 2026 and how we can grow to support more families. In 2026 we hope to expand our Hugs Wellness Hub, employing a s8cond counsellor and doing a monthly coffee morning. The space provides a place for families to come and speak to a member of the family support team, provide coun5elling to those who need it and play therapy for the children in treatment and their siblings. The plan is for the Derriford oncology nurses team to be able to use the space when needed. We want the Hub to be a leading support service in the Ioc818rea for chlldren and youth mental health, linked to childhood cancer. We will continue to provide respite to families with childhood cancer, in treatment, post treatment and to those who have been left bereaved by childhood cancer. There 18 currently no limit on time when this support ends as we feel childhood cancer is a long-temi diagnosis and has lasting effects on not only the child with cancer but the whole family. The respite home continues to be open all year. We hope to renovate a further bathroom in the next two years. We will be increasing our visits to hospitals within the South West to provide care packs and emotional support to local families being treated in these areas. We will be organising visits with local entertainers who can also visit the hospital. We provide emotional support over the phone, email or via social media platforms for any family with neuroblastoma nationally. We hope to also visit Derrifords, oncology clinic quarterly to provide support. We will continue to provide our annual Children's Cancer Ball I Party free of charge to the local oncology children and their families. We would like to increase the provision for another gatheringlfamily fun day for the summer months. We will organize various group away days throughout the year for families to spend lime with other oncology families, encouraging communication and support in the oncology community. This will be varied at different locations. The prlvate cinema screenings have proven popular and will be increasing these throughout the year. We will continue to provide gifts and hampers at Christmas to local hospitals and communities and chocolate eggs and crafts during Easter. We will continue to provide cooked meals to those in treatment when requested. Vouchers and care packs will hopefully increase as the charity fundraising grows. In 2025, the charity celebrated 10 years of being a registered charity with the charity commission, this was a momentous achievement through challenging times for the world with the covid pandemic and Brexrt. A continuation of renovating the Respite home bathrooms will be sought after in 2026. To do this we will be requesting funding from B&Q foundation and Screwfix foundation. The Hugs Hub and Wellness Centre will host monthly coffee momings and other smaller group events as well as offering alternative therapies and clinics. Page 3
Hugs Children's Cancer Charity CIO Trustees. Report (continued) Family away days are always very popular events in the Hugs calendar and we hope to expand on the amount of these we do each year. These grve families the ability to do a fun day out free of cost, bringing the family unit together but also giving families the abilty to speak to others who are going through similar circumstances. All planned events are based on amount fundraised. The children's cancer ball1dlO will be taking place in 2026 after a successful 2025 at our new venue of PlymoLrth Argyle. We will also be looking at hosting a family fun day in the summer. Donated services and facllltles Alongside the generous donations of items for sale in our shops we receiv& items from many sources, including companies who have nominated as their charity of the year, and via collection points in local retailers such as Dunelm Mill. Through her involvement in BNI Endeavour Plymouth, Elsbeth has been able to secure the support of the following business to significantly redu the set up costs of the new Hub facility and wishes to extend the charities thanks to these parties. - Davenpost Homes Leydon Limited - Dave WasteavRy - Mark Dawson The charity do not include the value of these donated servlces and goods in their financial reporting, as the value of these iiems cannot be reliably measured. 2026 AND ONWARDS Fundralslng Dl8cIo8ures The charity runs three charity shops which sell second hand donated goods, provides an outlet for publicity materi81 for the chanty and collects donations for the general vmrk of the charity= Hugs Children's Cancer Charity donation unit 1-3 Unit Sugar Mill Retail Park Plymouth PL9 7HT Hugs Children's Cancer Charity Shop The Broadway Plymstock Plymouth PL9 7AU Hugs Children5 Cancer Charity Shop 14 Phelps Road Devonport Plymouth PL14FS Telephone: 01752 651880 Page 4
Hugs Children's Cancer Charity CIO Trustees. Report (continued) FUNDRAISING MISSIONS As the charity grows the need for fundraising has increased, the new wellness unit, the Hugs Hub. has increased our fundraising missions due to the costs of individual counselling being provided as well as rent and utilities. The world economics have also impacted the charity over the last 18 months with national wage increases, energy costs and utilities increase and a change in the recycling trade that has impacted our shop costs. Our monthly respite home costs have also increased significantly due to increase of costs in the swimming pool, maintenance and waste. Our Charity Shops continue to be our main source of fundraising. It has become a community in itself with regular customers, volunteers and its own social media platform run by our retail manager, Ryan Jackson. The retail provides job opportunities but also volunteering to adults with leaming dfficulties. We have a charity fundraiser, Jemma Jon&s, whose role is to focus solely on bringing in the vital funds needed to run the charity. She does this through corporate networking, large scale events, and grant applications. We hope to expand this team as our charity grows and the fundraising needs grow with it. FUTURE FUNDRAISINGI HOW DO WE FUND OUR MISSIONS? Charity Shops Fundraising events i.e. Golf days. Strictly Hugs Dancing ball Sponsored runs, walks, skydives etc. Corporate sponsorship Grants from National and local grant givers i.e. National Lottery, Comic relief, Red nose day. Global make some noise, St James Place, Livewell foundation, Lady Astor. Legacy and Wills Community Lottery platform We are exctted to hold our Strictly Hugs D8ncing Ball again in 2026. This will be the 8th year we have organized this event and it has become a firm favourite wrth our patrons. We hope to train 8 novice dancers and raise upwards of £1 Ok at this event. Our annual golf day in April hopes to be a sell out and raise upwards of £3k. We are actively looking for participants to take on challenges such as sky diving, running events and asking those people to set up just giving pages. We have 24 spaces in the 2026 London Landmarks half marathon, this is a great event for participants to take part in a challange while raising a minimum of £350 on just giving. We hope to raise £5k from this yearly event. We have applied for various grants nationally to help the charity on its missions including the away days and we hope that this will help in funding more events. Page 5
Hugs Children's Cancer Charity CIO Trustees. Report (continued) TRUSTEES; ADE EDWARDS Ade works as a senior manager within a drug and alcohol charity in Plymouth and has worked exclusively in the third sector for the last 20 years. Ade brings knowledge and understanding of how charities operate, their legal framework and financial underpinnings to the board of trustees of which he is currently chair. MICHAEL HALLAM Michael is Henrys father and co-founder of Hugs Children's Cancer Charity. Mike is a Director of Expedite Building Servi8 and a Board Director of Expedite Holding Group, with over 18 years of electrical engineering experience. He has experience of managing large numbers of staff, engineering projects 8nd running a SME business. He brings relevant leadership, knowledge and experience from his work but most critically the understanding of being a father in the paediatric oncology field. ZOE EDWARDS Zoe has been a long-standing support to the charity from its conception in 2015. Zoe is a registered nurse with over 20 years. experience, She brings her wealth of medical knowledge and practice nur8e experience to the board. KELLY HEATLEY Kelly first started at the charity as a volunteer helping raise thousands and being a part of the original award winning 'Pride of Plymouth. fundraising team. Kelly brings this experience and passion to the board of trustees and is pivotal in fundraising ideas and campaigns. VICICf REEVES Vicky joined us in 2024 and has a vast experience in directly working with children in a charty setting through community sport initiatives 8t Devon Cricket Foundation. She brings a wealth of compassion and knowledge on disabilities, poverty and mental health of children in all social backgrounds. COMPANY DIRECTORICEOIFAMILY SUPPORT; Elsbeth Hallam Elsbeth serves as Chief Executive officer of the charty on an unpaid basis. She receives compensation solely for her separate role as Family support worker, providing emotional support, counselling and play therapy. This salary is included in direct charitablé expenditure. Elsbeth continuas to drive the charity forward with her passion for change and knowledge and personal experience of childhood cancer. he is p888ionate about supporting f8milie3 and meeting those who are going through childhood cancer. As well as winning a Pride of Britain for fundraising. Elsbeth has continued to be nominated and win awards over the last few years. Elsbeth was nominated in 2024 for a 'one big thank you, on the BBCS The One show, staring alongside Wayne Rooney. This vrfas a very special moment for Elsbeth, but also the families and everyone involved. She was also a runner up in the West country women awards for an inspirational leader and shortlisted for a Phoenix aYRrd, recognizing growth from unimaginable circumstances. Page 6
Hugs Children's Cancer Charity CIO Trustees. Report (continued) Elsbeth was recently founding president of BNI Endeavour, where she drove the charity within the business communty, raising over £30,000 in the last 12 months in donations and local business people supporting Hugs within running of the charity via building work, waste and cleaning services. Elsbeth is also a member of the Plymouth Argyle five host table where she has built relationships with local businesses in the room, gaining sponsorships and attendees for events, and where chosen as sleeve sponsors for an FA cup game. RETAIL DEVELOPMENT MANAGER Ryan Jackson - As our retail manager, he actively encourages supporting people in the community with learning difficulties to work in the retail units. With a vast experience of the retail sector, he is a key part of our fundraising mission through the shops. Ryan is dedicated to making a difference to not only the local community but to also the environment, being the first charity shop in Plymouth to recycle all plastics, he is keen on ensuring as little goes to landfill 88 possible and that recycling of all items is done where possible. This stands Hugs in great stead as we move forward into a more environmentally friendly future. OTHER STAFF; Claire Johnson Deputy Retail manager Rebecca Case Volunteer manager of Broadway Jaqueline Young Shop Supervisor Jemma Jones Fundraiser VOLUNTEERS We are lucky to be supported by 30 regular volunteers across all three shopping unit5. Volunteers continue to be the lrfeblood of the charity, a donation of time really makes 8 massive difference to the amount of funds we can raise. These volunteers also help at events, for example the charity balls often sees volunteers retum to support the charity in raising funds through raffles and bucket collecting. Page 7
Hugs Children's Cancer Charity CIO Trustees, Report (continued) PUBLIC BENEFIT The trustees confirm that they have complied with the requirements of section 17 of the Charitie5 Act 2011 to have due regard to the public benefit guidan published by the Charity Commission for England and Wales. Hugs Children's Cancer Charity has delivered the following activities for the public benefit which are in accordance with out charitable objectives and aims: The respite home continues to provide unique breaks for families affected with childhood cancer. We continue to provide Emotional support I Peer to peer support, now supported through our new Hub facility We have provided emotional support 8nd delivered 'care packs, to the families affected by childhood cancer during hospital visits. Provision of hampers and gifts at Christmas to the hospitals in the South West of England and hand delivered parcels and presents to families in the community. Our charity shops continue to be our main fundraiser for the charity. We continue to organise group events and coffee mornings for families, including the popular family away days to popular sites around the country. FINANCIAL REVIEW Policy on reserves The trusts aim to maintain free reserves at a level which equates to approximately six months of unrestricted expenditure. The trustees consider the CIO'S exposure to major risks in terms of their likely impact on income sources and planned expenditure in the short to medium term, as well as assessing the best way to manage such risks. The unrestricted funds of the charity are held for the promotion of physical and mental health of sufferers of Neuroblastoma in the UK and to provide support and advice to families of children suffering from Neuroblastoma. At the financial year end free reserves were £74,896 which equates to 1.3 months of expenditure based on the last financial year. The trustees are mindful that the reserves policy is not being met and are looking at ways to increase shop and event income going fopNards. Structure. governance and management Nature of governing document The trust is a registered charity (number 1161382), 8 charitable incorporated organization (CIO) (number CE003963) and is constituted under trust deed dated 22 April 2015 in England and Wales. On 23 July 2020 the charity changed its name to Hugs Children's Cancer Charty {Fomierly known as Huas From Henry). If the CIO is wound up, the members of the CIO have no liabilty to contribute to its assets and no personal responsibility for settling its debts and liabilities. Page 8
Hugs Children's Cancer Charity CIO Trustees. Raport (continued) R8cruitment and appointment of trustees: The constitution provides for a minimum of three trustees and there is no maximum. Every trustee must be appointed by a resolution passed at a properly convened meeting of the charty trustees. In selecting individuals for appointment regard is given to skills, knowledge and experience. Trustees can seNe until they either resign or their term ends without renewal. Overall responsibility for the management of the CIO is vested in the trustees. The charity will recruit additional trustees, as and when required by invitation. Trustees must give one month's notice before resigning. Extension of temis will be agreed by the board. Inductlon and tralnlng of trust•os Arrangements for setting key management personnel remuneration The day to day management of the charty is carried out by the CEO, Elsbeth Hallam, who receives remuneration from the charity for this service. The level of remuneration is set by the trustees, after taking into account the size of the chariiy and is benchmarked against other charities in the local area. Organlsational structure The day to day running of the charity is handled by Elsbeth Hallam. She is guided by the trustees when needed. She organizes quarterly trustee meetings and also run5 8 What&4pp group to ease communication beeen members. The majority of decision8 are made by a quorum of three trustees where the financial sums involved are in excess of £1000. Trustees all provide regular voluntary help with tasks where they have particular expertise. Elsbeth Hallam is also the family liaison officer for the charity. She has regular contact with families and ensures that she is available when needed for contact and visits. She organizes group events, food deliveries and general management of the respite home, the hub and counselling seNices. Page 9
Hugs Children's Cancer Charity CIO Trustees. Report (continued) Rlsks Major rlsks and management of those risks All significant activities undertaken are subjed to a risk review prior to implementation. Risks are assessed against their potential impact and likely effect on: Operational performance Financial sustainability . Achievement of our aims and objectives Meeting the expectations of our beneficiaries I supporters Charity integrity We review these risks on an ongolng basls to satisfy ourselves that adequate measures and procedures have been taken to manage the risks identrfied. Where appropriate certain mitigations are taken such as insurance or outside professional advice. Prior to implementation all risks Vre highlighted and mitigation measures were taken, Legal advice wa8 sought by GA Solicltors regarding employment contracts and Womble Bond Dickenson regarding shop leases, as well as the combined expertise and experience from all our trustees. Human resource advice is also undertaken and advised by Johnathan Keeble from Business Success. He is able to advise on any staffing issues and give best practice advice when needed as the charity grows. A staff handbook has been written by our solicitors, GA Solicitors, and provided to all staff as a part of our ongoing risk Management. Public benefit The trustees confirm that they have complied wilh Ihe requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charrty Commission for England and Wales. Trustees and officers The trustees and officers serving during the year and since the year end were as followJ: Trustees: Vicky Reeve Zoe Edwards Mlchael Hallam Kelly Heatley Ade Edwards Chairman: Ade Edwards Chief Executive Officer: Elsbeth Hallam, Co-founder Page 10
Hugs Children's Cancer Charity CIO Trustees. Report (continued) structure, governance and management Nature of governing document The trust is a registered charity (number 1161382), a charitsble incorporated organisation {ClO) (number CE003963) and is constituted under trust deed dated 22 April 2015 in England and Wales. On 23 July 2020 the charity changed its name to Hugs Children's Cancer Charity (formerly known as Hugs From Henry). If the CIO is wound up, the members of the CIO have no liability to contribute to its assets and no pensonal responsibility for settling its debts and liabilities. Statement of Trustaos, Rosponslbllltle8 The trustees are responsible for preparing the trustees, report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. The law applicable to charities requires the trustees to prepare financial statements for each financlal year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to.. select suitable accounting policies and then apply them consistently., observe the methods and principles in the Charities SORP; make judgements and estimates that are reasonable and prudent,. state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements., and prepare the financial statemenls on the going conrn basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008, and the provisions of the constttution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud end other irregularities. The trustees are responsible for the maintenance and integrity of the corporate and financial inform8tion included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. The behal al report approved by the trustees of the charity on 2.7:.2..:.26. and signed on its dwards an and trustee Ch Page11
Hugs Children's Cancer Charity CIO Independent Examiner's Report to the trustees of Hugs Children's Cancer Charity CIO I report to the trustees on my examination of the accounts of Hugs Children's Cancer Charity CIO for the year ended 30 April 2025. Responsibilities and basis of report As the charty trustees of Hugs Children's Cancer Charity CIO you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act,). I report in respect of my examination of the Hugs Children's Cancer Charity CIO'S accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. Independent examiner's Statement Since Hugs Children's Cancer Charity CIO'S gross income exceeded £250,000 your examiner must be a member of 8 body listed in section 145 of the 2011 Act. I confirm that l am qualified to undertake the examination because l am a member of ACCA, which is one of the listed bodies, I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1. accounting records were not kept In respect of Hug8 Children's Cancer Charity CIO as requlred by section 130 of the Act,. or 2. the accounts do not accord with those records: or 3. the accounts do not comply with the accounting requirements concerning the fomi and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair view, which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Matthew Keane FCCA Westcotts (SW) LLP Independent examiner Plym Houae 3 Longbridge Road Marsh Mills Plymouth Devon PL6 8LT Date:. Page 12
Hugs Children's Cancer Charity CIO ststement of Financial Activlties for the Year Ended 30 April 2025 Unrestrlcted funds Restricted funds Total 2025 Total 2024 Note Income and Endowments from. Donations and legacies Other trading activities Investment income 44,212 620,141 706 44,212 620,141 706 60,246 485,980 493 Total income 665.059 665,059 546,719 Expendlture on.. Raising funds Charitable activities (507,150) 154,236 (507,150) (165,255) (405,717) (146,476) 552,193 (5,474) (11,019) Total expenditure Net incomel(expendlture) Net movement in funds (661,386) {11,019) 11,019) (672,405) 3,673 (7,346) 3,673 (11,019) (7,346) (5,474) Reconclllatlon of fund8 Total funds brought foM8rd Total funds carried for¥V8rd 16 71,223 140,860 212,083 217,557 74,896 129,841 204,737 212,083 All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2024 is shown in note 16. The notes on pages 16 to 26 form an integral part of these financial statements. Page 13
Hugs Chlldren's Cancer Charity CIO (Registration number: 1161382) Balance Sheet as at 30 April 2025 2025 2024 Note Flxed assets Tangible assets Current assets Debtors Cash at bank and in hand 12 132,999 136,215 13 14.908 65,451 80,359 19,738 67,628 87,366 Credltors: Amounts falling due wlthln one year Net current assets 14 8,621 11,498 71.738 75,868 Net a88ets 204,737 212,083 Funds of the charlty: Restrlctod Income funds Restricted funds 129,841 140,860 Unrestrlcted income funds Unrestricted funds 74,896 71.223 Totsl funds 16 204,737 212,083 The on ancial stat ents on pages 13 to 26 were approved by the trustees, and authorised for issue signed on their behalf by: Ad Ch dwards an and trustee The notes on pages 16 to 26 fonn an integral part of these financial statements. Page 14
Hugs Children's Cancer Charity CIO Cash Flow Statement for the Yaar Ended 30 Aprll 2025 2025 2024 Note Cash flows from operatlng activities Net cash expenditure (7.346) (5,474) Adjustments to cash flows from non-cash Items Depreciation Investment income 5,282 706 6,552 (493) 585 (2.770) Worklng capital adjustments Decreasel(increase) in debtors (Decrease)lincrease in creditors Net cash flows from operating actmties Cash flows from Investlng actlvltles Interest receivable and similar income Purchase of tangible fixed assets Net cash flows from investing activities Net decrease in cash and cash equivalents 13 14 4,830 2,877) {8,514) 2,298 (817) (5,631) 493 709 12 2,066 1,360) (216) (2,177) 67,628 (5,847) 73,475 67,628 Cash and cash equivalents at 1 May Cash and cash equivalents at 30 April 65,451 All of the cash flows are derived from continuing operations durlng the above tKI periods. The notes on pages 16 to 26 fomi an integral part of these financial statements. Page 15
Hugs Children's Cancer Charity CIO Not8s to the Financial Statèments for th8 Year Ended 30 April 2025 l Accountlng policles Statement of compllance The charity has been registered in England and Wales as a CIO since 2015. The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011. Basls of preparation Hugs Children's Canr Charity CIO meets the definition of a public benefrt entity under FRS 102. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otheiSe stated in the relevant note(s) to these accounts. Going ¢on¢ern The financial statements have been prepared on a going concern basis. The trustees 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 the charity to conlinue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial stalements. Income and endOnentS Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability. Donatlons and l•gacles Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured. Grants recelvable Grants are recognised when the charty has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income. Tliis will be released to Income only once all performance conditions are met. Where grants are awarded but not received at the year end and the rights to receive the funds are confimied without conditians, Ihft ine.nmp. will hA inft.ILided in the SOFA and r•cord6d as accru6d income within debtors. Inated services and facilitles Donated goods and services are only included under income and matched to a corresponding expense when the value can be measured reliably. Other trading activities Money raised from sales via the charity shops is recognised upon receipt of funds. Page 16
Hugs Children's Cancer Charity CIO Notes to the Financial Statements for the Year Ended 30 April 2025 (continued) Investment income Bank interest is recognised upon receipt. Expenditure All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Other support costs are allocated based on the spread of staff costs. Ralslng funds These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds. Charltable actlvities Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Grantpmvlslons Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable. Support costs Support costs include central functions and have been allocated to activity cost CAtegories on a basis consistent with the use of resources, for example, allocating propety costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage. Governance costs These include the costs attributable to the charivs compliance with constitutional and statutory requirements. including audit, strategic management and trustees meetings and reimbursed expenses. Taxatlon The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 P8rt 11 of the Corporation Tax Act 2010 or Section 256 of the T8xation of Chargeable Gains Act 1992. to the extent that such income or gains are applied exclusively to ch8ritable purposes. Tanglble fixed assets Individual fixed assets costing £100.00 or more are initially recorded at C05t, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Page 17
Hugs Children's Cancer Charity CIO Notes to the Financial Statements for the Year Ended 30 April 2025 (continued) Depreciation and amortisation Depreciation is provided on tangible fixed assets so as to write off Ihe cost or valuation, less any estimated residual value, over their expected useful economic life as follows: Asset class Land and buildings Computer equipment Fixtures and frttings Depreclatlon method and rate 20h straight line 33°h straight line 25°A straight line Cash and cash equlvalents Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. Fund structuro Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity. Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to thal area or purpose. Pensions and other post retlrement obligations The charty operates a defined benefit pension scheme.Typically defined benefit plans define an amount of pension benefft that an employee will recetve on retirement, usually dependent on one or more factors such as age. years of seniice and compensation. The liabilty recognised in the Balance Sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the reporting date minus the fair value of plan assets. The defined benefit obligation is measured using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future payments by reference to market yields at the reporting date on high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the temis of the related pension liability. Actuarial gains and losses are charged or credf(ed to other comprehensive income in the period in which they arise. Page 18
Hugs Children's Cancer Charity CIO Notes to the Financial Statements for the Year Ended 30 Aprll 2025 (continued) 2 Income from donations and legacies Unrestrlcted funds General Total 2025 Total 2024 Donations and legacies., Donations from companies and other trading entities t)onations from individuals Grants, including capital grants" Grants from other charities 23,445 15,767 23,445 15,767 60,246 5,000 5,000 44,212 44,212 60,246 3 Income from other tradlng a¢tiviti08 Unrestrfcted funds General Total funds Total 2024 Trading income; Shop income from sale of donated goods and services Events income; Other events income Property rental income 587,998 587,998 439,891 25,281 6,882 820,141 25,281 6,862 620,141 39,215 6,874 485,980 4 Investment Income Unrestrlcted funds General Totsl 2025 Total 2024 Interest receivable and similar income. Interest receivable on bank deposits 706 493 Page 19
Hugs Children's Cancer Charity CIO Notes to the Financial Statements for the Year Ended 30 April 2025 (continuad) 5 Expenditu on ralslng funds a) Costs of tradlng activltles Unrestricted funds General Total 2025 Total 2024 Fundraising trading costs; Publicity expenses Shop running expenses Shop staff costs Event expenses 13,136 135,412 328,307 30,295 507,150 13,136 135,412 328,307 30,295 507,150 2,043 126,849 231,748 45,077 405,717 6 Expendlture on charitable actlvftles Unrestrlctod funds General Restricted fund8 Total 2026 Total 2024 Note Donations and gifts Respite home costs Insurance Travel and neOrkIng costs Stationery and admin Sundries Direct charitable expenditure Depreciation, amortisation and other similar costs Grant funding of activities Staff costs Alk)cated support costs Govemance costs 9,820 20,005 9,458 5,363 660 4,931 11,317 9,820 28,005 9,458 5,363 660 4,931 11,317 21,354 14,665 4,239 12,718 2,174 4,026 8,000 2,263 680 56,723 24,234 8,782 154,236 3.019 5,282 680 56,723 24,234 8,782 6,552 44,754 20.592 15.402 11,019 146,476 Page 20
Hugs Children's Cancer Charity CIO Notes to the Financial Statements for the Year Ended 30 April 2025 (continued) 7 Anatysis of governance and support costs Support costs allocated to charltable actlvltles Total 2025 Total 2024 Direct staff costs Legal and professional 7,846 12,746 24,234 24,234 20,592 Governance costs Unrestrlctad funds General Total 2025 Totsl 2024 Fees paid to Independent Examiner 8,782 8,782 8,782 8,782 15,402 15,402 8 Trustees remuneration and exp8n888 During the year the charity made the following transactions with trustee8.' Mlchael Hallam Michael Hallam is married to the founder and CEO Elsbeth Hallam, Elsbeth has operational control of the day to day financial operations, Michael is the director of Expedite Building Services Ltd. Expedite has supported the company during the year with unrestricted financial donations totalling £3,500. A further £500 was received from Expedite in line with an arms length sponsorship opportunity. During the year expenditure on one nights hotel accommodation was incurred in order for Michael to attend the London Landmarks Half Marathon in his role as a trustee, to support the runners at the event and promote the charity to the wider public. Where he attended any other event held by the charity, his expenses were entirely covered from personal funds and paid at the open market rate. Zoe Edwards £Nil (2024: £338) of expenses were reimbursed to Zoe Edwards during the year. Kelly Heatley £Nil (2024.. £329) of expenses were reimbursed to Kelly Heatley during the year. No trustees have received any reimbursed expenses or any other benefits from the charity during the year. Donations made by the trustees without any conditions attached totalled £Nil for the year (2024 £161). Page 21
Hugs Children's Cancer Charlty CIO Notes to the Financial Ststements for the Year Ended 30 April 2025 (contlnued) 9 Staff costs The aggregate payroll costs were as follows: 2025 2024 Stsff costs durlng the year ware: Wages and salaries Social security costs Pension costs 360,550 18,702 5,778 385,030 300,234 11,905 4,310 316,449 The monthly average number of persons (including senior management I leadership team) employed by the charity during the year bvas as follows.. 2025 No 31 2024 No 22 Average number of employees No employee received emoluments of more than £60,000 during the year The remuneration for Elsbeth Hallam is included within direct charitable cost5. Elsbeth does not take any further salary to cover her role as CEO. Her salary represents the hours supplied as a professional family support counsellor. This salary is set by the trustees with reference to other similar roles in the area. We also have due regard for minimum wage legislation and the significant number of hours which our CEO puts into supporting our families and promoting the charity to obtain funding for our projecls and services. The total salary paid to Elsbeth before employers National Insurance and statutory pension contributions was £28,711. 10 Independent examlner's remuneratlon 2025 2024 Other fees to examlners Independent examination services All other accounting and assurance services Other support and bookkeeplng ser¥ices 2,220 3,840 2,722 8,782 6,098 5,400 3,904 15,402 Page 22
Hugs Children's Cancer Charity CIO Notes to tha Flnancial Statements for the Year Ended 30 April 2025 (continuad) 11 Taxation The charity is a registered charity and is therefore exempt from taxation. 12 Tanglble flxed assets Furnlture and equlpment Land and bulldlngs Totsl Cost At 1 May 2024 Additions Disposals 150,974 27,957 2,066 2,470 178,931 2,066 2,470 At 30 April 2025 150,974 27.553 178.527 Depreclatlon At 1 May 2024 Charge for the year Eliminated on disposals 18,114 3,019 24,602 2,263 2,470 42.716 5,282 2,470 At 30 April 2025 Net book value 24,395 45,528 At 30 April 2025 129,841 3,158 132,999 At 30 April 2024 132,860 3,355 136,215 13 Debtors 2025 2024 Trade debtors Prepayments 5,863 13,875 19,738 14,908 14,908 14 Creditors: amounts falllng due withln one year 2025 2024 Trade creditor5 Accruals 1,661 6,960 11,498 8.621 11,498 Page 23
Hugs Children's Cancer Charity CIO Notes to the Financial Ststements for tha Yaar Ended 30 April 2025 (continued) 16 Obllgatlons under leases and hlra purchase contracts Operating lease commitments Total future minimum lease payments under non<ancellable operating leases are as follows: 2025 2024 Land and bulldlngs Within one year BetrNeen one and ftve years After fwe years 76,083 163,958 23,958 263,999 51,000 57,500 108,500 Other Within one year Between one and five years 12,326 5,136 17,462 12,326 16,434 28,760 16 Fund8 Balance at 1 May 2024 Incoming resources Resources Balance at expended 30 April 2025 Unrestrlcted funds General Unrestricted fund 71,223 665.059 (661,386) 74,896 Restricted funds Respite propety and fumiture Screwfix donation 132,860 8,000 (3,019) (8,000) 11,019 129.841 140.860 129.841 Total fund8 212,083 665,059 (672,405 204,737 Page 24
Hugs Children's Cancer Charity CIO Notss to the Financial Ststements for the Year Ended 30 April 2025 {contlnued) Balance at 1 May 2023 Incomlng resources Rèsources Balance at expended 30 Aprll 2024 Unrestrlctsd funds General Unrestricted fund 72,235 538,719 (539,731) 71,223 Restrlcted funds Respite property and furniture National Lottery funding Screwtix donation 137,172 8,150 (4,312) (8,150) 132,860 8.000 8,000 8.000 145,322 (12,462) 140,860 Total funds 217,557 546,719 (552,193) 212,083 Respite Property - bulldlng, flxtures and furnlshings this fund relates to the holiday property purchased to provide re8Plt8 for the charities families during treatment. The full cost and depreciation charges are set out in note 13. National Lottery funding - this balance was spent fully in 2024 on a supported trip for Hugs families to Longleat Safari Park. Screwfix grant- this award was provided to enable the renovation of the bathroom at the respite home. All works were completed and all funds received expended on the project during 2025. 17 Analysls of nat assets between funds Unrestrlcted funds General Total funds at 30 Aprll 2025 Restrlcted funds Tangible fixed assets Current assets CUrnt liabilities 3,158 80,359 8,621 129,841 132,999 80,359 (8,621 204,737 Total net assets 74.896 129,841 Unrestrlcted funds General Total funds at 30 Aprll 2024 Restricted funds Tangible fixed assets Current assets Current liabilities 3,355 87.366 (11,498) 132.860 136,215 87,366 (11,498) 212,083 Total net assets 79,223 132.860 Page 25
Hugs Children's Cancer Charity CIO Notss to the Financial Statsments for the Year Ended 30 Aprll 2025 (continued) 18 Related party transactions During the year the charity made the ft)Ilowing related paty transactions: Michael Hallam is a trustee and is the husband of the CEO and founder Elsbeth Hallam. Given Michael's role as a trustee, all related paty transactions involving Michael are set out in note 10 Trustees remuneration and expenses. At the stsrt of the year the charity vrfas operated from Elsbeth and Michael's home. Expenses were paid to reimburse them for a proportion of the utility costs of the property £ 3,115 (2024 £570). During the year all day to day operations were moved to the new Hub property, and all payments to Elsbeth and Michael for use of their home have ceased. There were no other related paty transactions during the year which require disclosure other than those above or disclosed in note 10. At the balance sheet date the amount due toffrom was £Nil (2024 £Nil). Page 26