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2025-03-31-accounts

Annual Report 24-25

Charity Number 1162418 www.thehabbitfactory.org

Table of Contents

3 Chairman's summary

4 The Organisation Who we are

6 7 8

9 11 13 15 19

3.Volunteer Programme

20

Financial Report

Chairs Summary -

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Robert Lithgow
Chair of Trustees
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This past year has been a transformative period for The Habbit Factory. We embraced a period of strategic renewal

by welcoming fresh perspectives onto our board as we bid a heartfelt, grateful farewell to some longstanding voices as

they reached the end of their term as trustees. This infusion of new ideas - balanced with the seasoned insights of

our continuing trustees - has reinvigorated our governance and positioned us to better impact the diverse community we serve. These changes ensured that our leadership remains dynamic and adaptable as we

navigate the opportunities ahead.

Celebrating our 20th anniversary amidst a backdrop of post-pandemic recovery, we reached remarkable milestones that underscore our resilience and vision. A standout moment was our partnership with BBC Children in Need, which afforded us an extraordinary ten-day media spotlight that reached an estimated twenty-one million people. This exposure magnified our charity’s visibility, casting a spotlight on our mission and capturing the hearts of wider audiences. It strengthened our digital presence and deepened community engagement, ensuring our story resonated far beyond our traditional channels.

Our progress isn’t limited to external recognition; internally, we’ve strengthened our team and deepened our community alliances. Strategic partnerships with local authorities, theatres, and educational institutions have expanded our influence as a trusted creative leader. With our dedicated core team now better resourced to support 500 young people every week, we’ve set the stage for enhanced programming and community impact. These accomplishments resonate as we prepare to build on our successes and continue delivering exceptional artistic and social value.

I wish to express my deepest gratitude to our board, staff, volunteers, partners, and supporters, whose dedication and passion ensure that The Habbit Factory not only survives but thrives as a beacon of creative expression and community empowerment. Thank you for your unwavering support as we look forward to another year of creative evolution and meaningful impact.

Organisational Structure

Board of Trustees Robert Lithgow (Chair) As of 31/03/2025 Tim Steel (Treasurer & Acting Secretary) Georgina Hart Guleraana Mir Kieran O'Callaghan Neera Dhir Makola Mayambika Dimple Pau

Executive Officer: Lee Giles (Artistic Director and CEO)

Registered Office: Queen’s Theatre Hornchurch Essex RM11 1QT

Registered Charity: 1162418

Bankers: NatWest

120 - 122 High St, Hornchurch

Essex

RM12 4UL

The Organisation

Who we are

We are an inclusive arts organisation in The London Borough of Havering, welcoming all and working with some of the most excluded and disadvantaged children and young people in the area. Through a targeted network of partners our work helps people who do not see themselves as artists or do not have access to any creative engagement or provision.

Structure & Objects

The Habbit Factory is a registered charity. The objectives and powers of the Charity are set out in our constitution. The objective for which the charity was established was the advancement of education in the fields of the arts - principally to advance the education of children and young people in all aspects of the performing arts through the provision of workshops and opportunities to participate in artistic performances.

Governance

The Board of Trustees has responsibility for the governance of The Habbit Factory and are appointed based on specific skills and knowledge enabling them to contribute to the governance of the charity. Trustees to engage with the Chairman and Executive Director, as well as meeting with staff working within their own area of specialism. The Board usually meet quarterly and review cross-organisation performance and development. Finance is the responsibility of the Finance Committee, which includes the Chair, Treasurer, and the Artistic Director/CEO. It oversees the development of financial plans and approves annual budget.. The Finance Committee regularly reviews financial performance including controls to carefully manage expenditure.

Management

The Artistic Director/CEO is responsible for the charity’s day-to-day operations, overseeing progress against key performance indicators (KPIs) aligned with its four main aims and objectives: governance and operations, the Membership Programme, the Educational Programme, and the Artistic Programme. Communication within the company, and to the wider Habbit Factory community, is facilitated through face-toface briefings (including staff and volunteer meetings), complemented by communications via email. It is important to document that the Habbit Factory’s boasts a strong team of volunteers who are vital to our work.

Chief Executive Report

Founded in 2004, The Habbit Factory’s vision is for an inclusive world where everyone has equal access to the arts. Working within the London Borough of Havering, our approach is built on the principles of inclusivity, welcoming everyone. As the only Inclusive arts organisation in the borough and through a targeted network of partners; we can connect with individuals who often get overlooked within the community.

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Lee Giles
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Lee Giles
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We believe art has the power to effect change. Evidence continues to suggest that the creative arts is one of the most powerful tools to bring people together, breaking down social and cultural barriers, whilst helping the most vulnerable to lead a fulfilling and dignified life.

Through programmes and activities facilitating education, theatre, participation, and professional training, The Habbit Factory breaks down barriers to inclusion and transforms wellbeing.

The Habbit Factory works with children and young people from ages three plus and with adults of all ages. Our inclusive ethos means we welcome people from diverse backgrounds, and our community is made up of people from across all of society, including those experiencing social exclusion in mainstream environments for whom we provide additional support. These potential barriers to participation include socio economic disadvantages, learning disabilities physical disabilities; illness and longterm medical conditions; sensory impairments; abuse and neglect; behavioural difficulties; those with poor mental health; being in the care system; and having caring responsibilities.

Chief Executive Report - Overview

At the start of the year, we began recruiting new board members as seven of our eight trustees neared the end of their terms. Two stepped down, creating opportunities for fresh perspectives. We appointed three new trustees - two parents of members and one from the theatre industry with no prior connection to THF - strengthening our governance as we continued expanding. We also maintained our collaboration with fundraising consultant Adam Gallacher. Our partnership with BBC Children in Need led to major media exposure, including a feature on the Pudsey Appeal Show where Gary Oldman read a CBeebies Bedtime Story about The Habbit Factory and one of our families, resulting in over 250,000 website views in two weeks.

Celebrating our 20th anniversary, we reached our highest fundraising total, thanks to Adam’s support. We continued to expand our strategic partnerships with the local authority, Queen’s Theatre Hornchurch, Central School of Speech & Drama, Havering Changing, and the Myplace Centre, strengthening our position as a leading arts organisation. Our core team expanded from three to five members, increasing weekly working hours to 151, improving our capacity to support young people. We also brought in a freelance Adult Company Associate Director but had to pause the programme in February 2025 due to funding challenges. Zoe joined as our Arts Engagement Manager, focusing on education and outreach, and Sarah became our Charity Administrator, easing the team’s workload.

Our Membership Programme thrived, with full-capacity Children’s Company groups and a waiting list of 80 young people. While demand grew, we prioritised maintaining a personalised approach. The Children’s Company co-produced a Blueprint document to structure artistic values and timelines, ensuring clarity for both the team and members. However, financial pressures led to the difficult decision to pause our Adult Company, impacting long-standing members, many with SEND. Despite this, we averaged 161 members per week, 92 of whom required additional support, and saw a decrease in membership donations.

The Education & Outreach Programme expanded significantly, particularly in engaging young people struggling with traditional education. With Zoe’s leadership, we grew from five to eight weekly school workshops, launched an Attendance Programme in collaboration with Havering Local Authority, and explored alternative provisions for SEND students. We also redefined our Volunteer Programme, easing pressure on workshop volunteers by introducing Front of House, Props & Set, and Costume committees. A successful black-tie celebration honoured our volunteers, and we enhanced training and support, ensuring they felt valued and cared for.

Trustees

At the start of the year, we began looking for new trustees. With seven of our eight trustees reaching the end of their three-year term, two decided to step down, opening up space for fresh voices. We wanted people with unique and relevant professional and personal experience and those who could bring valuable perspectives to board discussions as we entered the second year of our three-year plan. It was also important that our board reflected the community we serve.

After another year of big growth, we needed to develop new governance practices and continue laying the foundations for our expanding charity. We appointed three new trustees: two parents of members and someone from the theatre industry who had no prior connection to THF. We felt that combining the insights of those who know the organisation well with the fresh perspective of someone new would strengthen our board and our decisionmaking.

Core Team

To meet rising demand, we expanded our team from three to five, increasing weekly hours from 94 to 151. This boosted our capacity to support members, strengthen programmes, and manage growth more effectively.

In September, we brought in a freelance Adult Company Associate Director to offer dedicated support. However, after several unsuccessful funding bids, we paused the Adult Company and the role in February 2025 until we can secure sustainability.

Zoe joined as our Arts Engagement Manager to lead the expanding Education & Outreach Programme, responding to growing interest from schools. She’s become a seamless part of the team.

With admin demands rising, we used Backstage Trust funding to recruit Sarah as our part-time Charity Administrator—described as “a big hug for the organisation.” Her support has lifted a huge burden from the team.

For the first time, our team structure feels right for the 500 young people we now support each week. While the dedication remains, our operations are finally more sustainable.

Strategies employed to achieve the charity's aims and objectives

In pursuit of our charitable aims we have continued to reach young people through focusing our work in the key strategic areas of Membership Programme, Educational & Outreach Programme, Volunteer Programme, Artistic Programming & Governance and Operations. Key activities and achievements are detailed below:

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Lee Giles
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Membership Programme

The Membership Programme brings children, young people, and adults together to co-create through the performing arts, building essential life skills and fostering collaboration across staff, members, and volunteers. Our Theory of Change helps measure this impact.

This year, our Children’s Company saw record demand, with most groups at full capacity and a waiting list of 64. While we've tried to accommodate interest by recruiting more volunteers or suggesting alternative hubs, we’ve chosen to prioritise our personalised approach over simply increasing numbers, to protect the quality of experience for the individual.

Together with our Volunteer Company, the team co-created a blueprint outlining shared artistic values and a clear operational structure - giving everyone a stronger sense of direction and ownership over our artistic work.

In February, we made the tough decision to pause our Adult Company due to rising costs and continued funding challenges. This was especially difficult given that 67% of Adult Company members have SEND, and 40% were turning 26, with few local options available. We plan to hold community consultations to explore sustainable solutions.

Across 2024–25, we worked with 225 young people, averaging 146 weekly attendees - 91 of whom required additional support or faced access barriers. Membership donations declined, with 59% of young people receiving free spaces (up from 48%). Despite rising costs, we remain committed to finding funding to keep our programme accessible to all.

“The thought of them not being a part of the Habbit Factory makes me so sad. It has been so lovely to see how his confidence has grown over the years. I have enjoyed seeing many of the children grow into the amazing actors/actresses they are today.

Over years I have watched some of the children become Blue Tees and continue the amazing work. I can’t thank each and every one of you enough for all your support, love, kindness and everything else you have done. Thank you from the bottom of my heart .” Parent of Member

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86%
92% 225
of young people reported Total number of young said they feel more confident
feeling part of a group since people engaged in using creativity as a result
joining The Habbit Factory of their involvement
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Throughout the past year, we engaged 225 young people , creating a sense of community and support. An impressive 92% of young people reported feeling part of a group since joining The Habbit Factory, with an average rating of 4.7 out of 5. With 86% saying they feel more confident in using creativity as a result of their involvement

Education and Outreach Programme

This year saw the biggest growth in our Education & Outreach Programme history, using theatre to support children and young people who struggle in traditional school environments. We work in some of the UK’s most deprived areas, with many participants later joining our Membership Programme for continued support.

Appointing Zoe as Arts Engagement Manager launched the biggest shift since the programme launched in 2013. After embedding herself in our work, she connected with schools and teachers to understand their needs - particularly for pupils who thrive with practical, creative learning. The result: a more inclusive, engaging environment for everyone involved.

We expanded from five to eight weekly workshops in schools including Drapers Brookside, Drapers Pyrgo, Mead, and Hilldene, and ran three sessions in partnership with Tender Shoots. We also directed an end-of-year performance, collaborated with sixth-form students at Barking Abbey and Little Heath, and explored career-focused projects with a SEND careers advisor in Barking & Dagenham.

A standout success was our Attendance Programme pilot, developed with Havering Local Authority. Based in four schools, it tackled attendance challenges identified by students and staff, leading to a commissioned six-week project in each.

We’re now exploring long-term Alternative Provision models and have begun scoping corporate partnerships, using our inclusive practice to support professional development and team wellbeing.

“The true impact of The Habbit Factory's work is difficult to measure, given its far-reaching effects. Within our school community, they have supported children facing complex health and emotional challenges, including those dealing with bereavement and parents with serious illnesses. Through their efforts, these children have found a space to "be themselves," experience joy, and form friendships during some of the darkest times in their lives. Additionally, The Habit Factory has played a crucial role in helping children develop tolerance, cooperation, and lasting friendships” Headteacher, Drapers Brookside

92% 948 94% Of young people learnt a new Young People Engaged Of young people said they skill would do it again

95%

339.5

·Of young people said it Hours of workshops delivered improved their mental health in one year

Volunteer Programme

This year, we redefined what volunteering means at The Habbit Factory. Our 39 Blue Tees remain a vital part of our work, supporting workshops and performances while often helping across the charity. To ease pressure and involve more people, we created new ways to volunteer beyond the workshop space.

We launched three new committees: Front of House, Props, and Costume. These roles have spread the workload and welcomed fresh faces into our community. In total, 65 volunteers contributed an estimated 4,385.85 hours. Valued at the London Living Wage, this equates to around £60,300, not including the generous time given by staff, families, members, and our unpaid Trustee Board.

Our volunteers are the heart of the organisation, and their energy drives everything we do. With support from the Jack Petchey Foundation, we hosted a black-tie Volunteer Awards evening, attended by over 100 guests including members, parents, trustees, the Mayor, and our Patron, Lucy Benjamin.

We also strengthened our training offer, including enhanced DBS checks, inclusive practice, Level 1 Safeguarding, Paediatric First Aid, and Mental Health Awareness. We introduced the "Room to Reward" scheme, offering hotel stays for three volunteers each year, and created two ‘Blue Tee Rep’ roles for those wanting extra responsibility.

Most importantly, we’ve had the time and capacity to check in with volunteers individually, supporting their wellbeing and personal needs. As with our young people, we now feel confident we can offer volunteers the care, support and appreciation they truly deserve.

‘I came away thinking how fortunate the children were to be involved in The Habbit Factory. They were quite chilled, talking, rehearsing, colouring in their sketch books. It was a calm atmosphere, a real delight’ Costume Committee Volunteer

‘I absolutely felt supported and empowered from the staff team, members and other volunteers’ Volunteer who supported ‘Our Story’

‘In typical fashion, I would take any opportunity to thank you for the rehearsal process, the show weekend but generally being a very supportive and collaborative team to work with. Next year’s show can’t come soon enough!’ Volunteer who supported ‘Our Story’

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A total
85% 44%
65
Volunteers gave
Of our Volunteers would Of our volunteers are aged
The Habbit Factory based onrecommend volunteering at 4,385.85 between 18-25
their experience hours
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Artistic Programming

As The Habbit Factory celebrated its 20th anniversary, our young people, volunteers, and staff decided to take a different approach for our summer show. Rather than creating a brand-new musical, we reflected on our 20-year journey and showcased the "best bits" in a production titled ‘Our Story’. Our annual pantomime, ‘Dick Whittington’, was once again a resounding success. Below are some highlights from both productions:

Our Story - Children’s Company

Performed at the Queen’s Theatre in Hornchurch over two nights to an audience of 824, Our Story featured 156 young people, with 44 stepping onto the stage for the very first time. The production was supported by 41 volunteers, who collectively dedicated 508 hours over two days.

Each year, we begin generating ideas for our summer show at the start of the school term. It quickly became clear that celebrating THF’s 20th anniversary by revisiting past productions and key moments from our history was the right choice. Our members were enthusiastic about revisiting past performances, with one young person saying, “We should do the ‘Villains Cell Block Tango’ section from Twice Upon a Time because I had just moved from being a Junior to a Senior and I remember being fuming that it was a Junior piece, and I wanted to do it.” Needless to say, we brought that piece back - keen teenagers aren’t to be argued with!

The show also included a powerful section about the pandemic, where we showcased our online activities on a projector while simultaneously bringing them to life in a fresh, creative, and emotive way.

Due to rising costs, we scaled back on set design for this production, instead making full use of projection to display images and videos from past productions and projects. Those who have followed our journey for years appreciated this.

A total 83% 156

young people performed with

Of our audience said they would recommend the show to a friend

44 performing for the first time

41

Volunteers supported the production from on stage, tech crew, front of house, costume committee and captioning

”We loved the variety, the showcasing of the children and the story / purpose behind the the Habbit Factory.” Audience Member

“This show felt like my show. I created it, I experienced it and I performed it.” Young person taking part

“The Habbit Factory is a marvellous charity changing youngsters lives in such a positive and meaningful way - please keep up the good work.”

Audience Member

Dick Whittington - Full Company

The pantomime project was launched in 2017 following discussions with our community, members, families, and volunteers. These conversations highlighted the importance of staff and Blue Tees taking on lead roles while also creating more opportunities for children and young people. This led to our Junior and Senior companies joining the cast, creating a more diverse and truly inclusive pantomime. Building on last year's five-performance sell-out, we chose to produce Dick Whittington, one of the oldest pantomimes, though not the most well-known among younger audiences.

With our previous set designer, Luis, no longer available, we had to explore alternative options. Keeping sustainability in mind, we purchased a pre-used set rather than hiring one, easing the pressure of sourcing an individual or team to build a new one.

When we opened registration to young people to join our cast, we initially had just 66 spaces available. However, within three minutes, 67 young people signed up. In true Habbit Factory fashion, we reworked the casting to accommodate everyone, The cast featured 18 Blue Tees, 88 children and young people, supported by 8 tech and backstage crew. Our front-of-house team welcomed 907 audience members from our community.

93%

26%

100%

Of our audience said they Of our audience were first Of our audience said the would recommend the show time attendees pantomime was excellent to a friend value for money

33%

Of our audience had no affiliation with cast or crew

82%

of our audience felt the pantomime exceeded their expectations with 18% saying it met them

"The Habbit Factory always delivers. It has everything for young and old—audience participation and interaction. Extremely funny right from the start. A quote from my neighbours who also came to see the pantomime: ‘We look forward to this every year; it’s now our Christmas tradition.’"

Audience Member

“"I’ve seen other pantomimes in large theatres, and this one had them all beat hands down—definitely the best I’ve ever seen!" Audience Member

“We loved how you fully incorporated the young people in the production, and we got to see interaction between them and the adult cast like never before.” Audience Member

Future Plans

We are now entering the final year of our three-year business plan, having achieved 80% of our objectives, with some goals no longer relevant. Most importantly, we have expanded our team’s capacity, ensuring we are not overstretching while continuing to make a deep and meaningful impact on every individual we engage with.

This final year will focus on assessing the successes and challenges of our current plan while shaping our next three-year strategy. A key aim is to build our reserves to a minimum of three months’ operational costs. (currently at 2.5) which is a necessary step as our staff team has grown. We aim to build on recent achievements to strategically position The Habbit Factory for an application to the Arts Council’s National Portfolio Organisation (NPO) funding in the next round and continue to build contacts to expand our Education & Outreach Programme.

Treasurers Summary

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Tim Steel
Treasurer
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Below are the accounts for our financial year ending 31st March 2025. .

As can be seen, our overall income increased by 26% to just over £190,000 – almost double what it was two years ago. This has been mainly driven by a substantial increase in grant funding, with an additional £23,500 already received for projects planned for later in 2025. A huge success for the fundraising team - our best year. And last year we also saw our education programme really start to grow – with income up almost 30%.

However, we have also seen a similar increase in our costs, mainly driven by employment, as we have now increased our permanent staff to five (including two part time). This increase in staffing has been funded either by grant or education programme income and is core to the charity. Nevertheless, along with our consultancy fees for fundraising, employment costs represent nearly 80% of the cost base.

We made a surplus of just over £5,000 last year, increasing our reserves to almost £36,000 – our highest reserves balance ever (though only 12,500 is unrestricted). However, with monthly expenditure averaging more than £15,000, our reserves cover has reduced again this year to 2.3 months (much less if we judged this against unrestricted reserves).

As with most charities, each year we are dependent on grants and fundraising. Most grant income is not guaranteed and/or is subject to change, whereas many of our costs are difficult to flex in the short term and will tend to increase. Further, grant income usually requires certain activities to be achieved, at incremental cost, and therefore rarely sustains the day-to-day running costs of the charity.

To ensure that our charity remains sustainable we need our unrestricted reserves to grow in line with the growth in our charity. The Trustees, therefore, reviewed the charity’s finances in some detail at the board meeting in April and approved the following:

Treasurers Summary Continued

  1. A balanced budget for 2025/6 based on a conservative forecast of income for the year ahead, noting that we already have £23,500 of this income “in the bank”.

  2. Several initiatives to improve reserves and our financial resilience, including:

  3. The formation of a new fundraising committee.

  4. A review of aspirational income opportunities, with the CEO and Treasurer.

  5. Limiting employment cost increases for the coming year to inflation, with future increases to be paid only against certain success and affordability criteria (detail to be developed).

  6. The strengthening of our financial approval processes and controls.

  7. The formation of “reaction plans” (to be prepared by the CEO and Treasurer) to prepare the charity to respond quickly, should there be a material adverse change in our financial position, or forecast.

And that the above will be regularly reviewed by the Finance Committee and reported to the Board of Trustees.

On this basis, I remain satisfied that our charity’s financial position remains firm and that the team are well set for the year ahead, and beyond. But we must not take our eye off the ball and continue to build income sources for the future, particularly beyond grants, as well as control costs.

Tim Steel FCMA, CGMA Treasurer

umma Profit and Loss - ear ended 31 March 2025 025 024 ncom Trusts and Foundation grants. Member programme donations Educational programme fees Panto & Summer Show Corporate & Individual giving Tickets, events and challenges Bank interest 111,453 16,012 25,124 21,179 8,386 7,612 912 73,737 17,508 19,480 24,392 10,091 5,366 637 Total income 190 677 151 211 Staffing and consultancy Panto & Summer Show Venue hire & expenses Equipment, insurance & overheads Educational programme Other Fundraising Other performance costs 143,302 20,032 10,442 8,799 180 63 2,830 105,199 25,466 8, 140 8,946 2,243 Total ex enditure 149 993 Profit on activities * Includes an award from the Foyle Foundation for £7,000, with £5,250 of this award accrued to financial year 2025/6, 02 ssets Trade debtors Prepayments Bank/buildlng soclety balances Cash in hand (Petty Cash) 800 3,093 58,526 2,800 31,711 Liabilities Grants received in advance Trade Creditors 23,500 Net assets Net chari assets re ital account: Balance at start of period Net surplus (deficit) resented b 02 024 30,918 29,701 Sur lus funds Restricted expenditure Unrestricted expenditure 23,500

Contact Us

The Habbit Factory

Phone

07985377781

Email/

hello@thehabbitfactory.org

Website

www.thehabbitfactory.org

Address

The Habbit Factory/CO Queens Theatre Hornchurch Billet Lane Hornchurch Essex RM11 1QT

Independent examiner's report on the accounts

Section A Independent Examiner’s Report

Report to the trustees/
members of
On accounts for the year
ended
Set out on pages		 The Habbit Factory The Habbit Factory The Habbit Factory
31 March 2025 Charity no
(if any)		 1162418
As per the attached accounts

I report to the trustees on my examination of the accounts of the above charity (“the Trust”) for the year ended 31[st] March 2025. Responsibilities and As the charity's trustees, you are responsible for the preparation of the basis of report accounts in accordance with the requirements of the Charities Act 2011 (“the Act”).

I report in respect of my examination of the Trust’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 I have completed my examination. I confirm that no material matters have examiner's statement come to my attention in connection with the examination which gives me cause to believe that in, any material respect:

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.

Date: 25[th] Sept 2025

Signed: Name: Kaan Fehmi Relevant professional qualification(s) or body ACMA, CGMA (if any):

Address: Cryalls House, Auckland Drive, Sittingbourne, Kent. ME10 1HN

1

Oct 2018

IER

Section B Disclosure

Only complete if the examiner needs to highlight material matters of concern (see CC32, Independent examination of charity accounts: directions and guidance for examiners).

Give here brief details of any items that the examiner wishes to disclose .

2

Oct 2018

IER