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2025-09-29-accounts

Registered number: 07931944 Charity number: 1162997

PEACEFUL CHANGE INITIATIVE

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

For the Period Ended 30 September 2025

PEACEFUL CHANGE INITIATIVE

(A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Chairman's Statement 2
Trustees' Report 3 - 14
Independent Auditors' Report on the Financial Statements 15 - 18
Statement of Financial Activities 19
Balance Sheet 20 - 21
Statement of Cash Flows 22
Notes to the Financial Statements 23 - 38

(A Company Limited by Guarantee)

PEACEFUL CHANGE INITIATIVE

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS For the Period Ended 30 September 2025

Trustees

William Peace, Chair Russell Brown (appointed 3 June 2024) Athina Fokidou (appointed 30 June 2024, resigned 18 March 2026) James Freeman Joan Mary McGregor (resigned 22 August 2025) Peter Millett (resigned 28 August 2025) Rukayat Omowonuola Owoade (resigned 3 June 2024) Giulia Pellegrini (resigned 20 August 2025) Anton Shinhoff

Company registered number

07931944

Charity registered number

1162997

Registered office

1st Floor, Arthur Stanley House 40-50 Tottenham Street London W1T 4RN

Chief executive officer

Fleur Just

Independent auditors

Goodman Jones LLP Chartered Accountants 1st Floor Arthur Stanley House 40-50 Tottenham Street London W1T 4RN

Bankers

Co-operative Bank PO Box 101 1 Balloon Street Manchester M60 4EP

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PEACEFUL CHANGE INITIATIVE (A Company Limited by Guarantee)

A MESSAGE FROM OUR CHAIR OF TRUSTEES AND CHIEF EXECUTIVE OFFICER (CEO) For the Period Ended 30 September 2025

It is with great sadness that the Board of Trustees of the Peaceful Change initiative has taken the difficult decision to wind down the charity. This therefore marks our final annual report.

Whilst closing is a very sad situation for PCi’s staff, trustees and partners around the world, we are also proud of what we have achieved together during the past 13 years. We know that previously warring communities in Libya are living peacefully side by side in towns across the country due to the remarkable work of the PCi team and partners there. Civil society organisations that have been established in Libya with our support, will continue to contribute to peace in the years to come. We know that between 2014 and 2018 tens of thousands of Syrians received humanitarian aid as a result of the network of Syrian negotiators that PCi worked with Syrian partners to convene and train. Thousands of Syrians are alive today due to the brave negotiation and mediation efforts of our partners.

We know that journalists in Serbia and Kosovo have been able to produce news stories that challenge mainstream conflict narratives in part due to dialogues facilitated by PCi. We know that in Ukraine, even as the war rages, networks of mayors that we have worked with are working to maintain social cohesion between community members in the west of the country and Russian-speaking Ukrainians from eastern parts of the country. We know that a cohort of conflict-affected young Armenian people will have skills to engage constructively on peace and security issues. And, we know that conflict sensitivity in Mozambique is much higher on the agenda of donors, implementers and companies due to PCi’s advocacy efforts there.

Like many peacebuilding organisations in the UK and around the world, we have faced growing financial pressures due to a steady decline in donor funding for peacebuilding and conflict prevention, the increasing commercialisation and compliance costs of government donor contracts, and donor refusal to cover realistic overhead costs.

The announcement in early 2025 by the UK Government to drastically cut the foreign aid budget to fund an increase in defence spending has been a further blow to us. As a result of this, we cannot find a way to develop a sustainable funding model in the current climate, leaving us with no option but to close.

Peacebuilding works to confront the drivers of violent conflict and to build the conditions that make sustainable peace possible. At a time of rapidly rising global conflict and polarisation, the dialogue, relationship building, problem solving and imagination that peacebuilding offers is needed as much as ever. However, we estimate that government and EU funding for peacebuilding will be reduced by as much as 50% as part of ongoing cuts to overseas development aid. We urge trusts, foundations and private philanthropists to increase their support to remaining peacebuilding organisations. Their experience and expertise will be needed in the future.

We have utilised the months of this reporting period following our decision to close to work with our staff and partners to ensure that PCi’s legacy lives on, and that the tools, materials and knowledge we have created are made available to those who need them. We have worked to close down our remaining projects responsibly and safely, and to support our staff in finding new opportunities. We now begin the work of closing the charitable company with both Charities House and the Charity Commission, a task we expect to complete by early 2026.

What follows is our final annual report, detailing our work over 2024-5 and the achievements we are most proud of.

We take this opportunity to thank PCi co-founders, PCi staff, partners and donors for all your contributions to peaceful change over the past 13 years.

William Peace Chairman of the Board of Trustees

Fleur Auzimour Just Co-founder and Chief Executive Officer

Page 2

PEACEFUL CHANGE INITIATIVE

(A Company Limited by Guarantee)

TRUSTEES' REPORT For the Period Ended 30 September 2025

The Trustees present their annual report together with the audited financial statements of the Charity for the period 31 March 2024 to 30 September 2025. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the Charity qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

a. Charitable objectives

Our vision is a world free from violent conflict. A world where societies undergoing major change manage conflict without violence through dialogue and collaboration.

Our purpose is to work with communities and their leaders to confront the drivers of violent conflict and build the conditions that make sustainable peace possible.

Our objectives are relieving suffering, poverty, and distress, and building and maintaining social cohesion, resilience, and trust within and between communities.

These objectives are achieved through the following activities:

All activities aim to maintain the Charity’s commitment to impartiality.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

b. Our work

Our work has contributed to sustainable peace by building bridges between communities in conflict, fostering local and national peace efforts, and supporting the creation of institutions that can resolve conflict peacefully. This, in turn, this has promoted an environment where people feel more secure and given communities confidence in a shared future. We have also advised international agencies, governments, and companies on how to achieve greater positive impact in conflict-affected contexts.

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PEACEFUL CHANGE INITIATIVE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) For the Period Ended 30 September 2025

Objectives and activities (continued)

c. How we make a difference

We have built deep knowledge and strong partnerships where we work. This has allowed us to do both the longterm work of building lasting peace and to respond quickly and effectively to crises. We have worked side by side with partners ranging from religious leaders to national decision makers. We have supported them with practical tools and knowledge for peacebuilding, such as conflict management and mediation training. This has helped to ensure they can be effective advocates for peace in their community, now and in the future.

We have only worked where we knew we could make a real difference to people’s lives. Many communities we have worked with have successfully managed high-risk conflicts and avoided violence, even when formal peace processes have failed. In Libya, for example, we have supported community-led peace initiatives which provide a neutral platform for local leaders to identify and address issues that may lead to violence. These have been instrumental in preventing outbreaks of violent conflict and maintaining social peace.

d. Key events

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PEACEFUL CHANGE INITIATIVE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) For the Period Ended 30 September 2025

Achievements and performance

a. Main achievements of the Charity

Our work in 2024-25 focused on Libya, Mozambique and the Swahili Coast region. Our technical peacebuilding support to other entities and organisations focused on conflict sensitivity.

Libya

This year we celebrated significant progress in fostering national reconciliation through regional cooperation. The establishment of a national SPLD hub and the creation of a national charter to prevent post-election violence were pivotal achievements. An independent review commissioned by the British Embassy also confirmed that our work in Libya “addresses local conflict risk factors, de-escalates local tensions, reinforces local resilience, supports political participation, sensitively supports GESI [gender equality and social inclusion], and enhances the conflict sensitivity of local development.”

Mozambique

We developed a strategic partnership with MASC, a Mozambican NGO, with the aim of collaborating on delivering conflict sensitivity advice whilst simultaneously supporting the growth of Mozambican expertise in this area. We delivered two conflict sensitivity workshops to a group of 10 major international companies operating across Mozambique.

Swahili Coast

We published research exploring opportunities for engaging young people in strengthening community peace and security, with including a focus on how cultural practices can support peace and social cohesion. This research was the culmination of a partnership with three academic institutions based in Kenya, Tanzania and Mozambique.

Provision of PCi technical support to peacebuilding and aid projects

We published our tools, guidance and latest thinking on conflict sensitivity, including our first ever podcasts. We worked with Syrian partners to assess conflict sensitivity considerations there, following the fall of Assad.

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PEACEFUL CHANGE INITIATIVE (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) For the Period Ended 30 September 2025

Achievements and performance (continued)

b. Libya

The context

Libya is characterised by political violence, polarisation, and instability. Since the 2011 revolution, rival authorities have been fighting over power, resulting in a constant division. The two contested governments in the east and west are a prominent example of the ongoing division. Armed groups also have significant influence, often aligning with politicians and forming alliances with other armed groups, exacerbating instability.

Furthermore, regional and international actors have been involved since Muammar Gaddafi's overthrow, supporting and funding factions, adding complexity to the situation. The ongoing power struggle has led to dire consequences, including humanitarian crises, forced displacement, and impeded prospects for sustainable peace and development.

Over the past year, some limited progress was made in Libya's political process. Under international pressure, talks between rival factions resumed, resulting in a tentative agreement on the framework for national elections. Although a final electoral timeline remains elusive, both sides agreed in principle to key constitutional arrangements. Efforts to unify certain state institutions, notably the Central Bank of Libya and the National Oil Corporation, also advanced, raising cautious hopes for a more inclusive and stable political transition.

How we work in Libya

PCi has worked in Libya since 2013, supporting peacebuilding and local development initiatives in more than 40 communities across the country’s three regions. PCi works side by side with Libyan peacebuilders to foster local, regional, and national peace initiatives. We focus on supporting our partners with practical tools and knowledge for peacebuilding so they can effectively intervene in resolving community conflicts and make local governance structures more inclusive of women, young people, and marginalised groups. Additionally, PCi advises humanitarian and development actors working in Libya on how to deliver projects in a conflict sensitive way.

Our actions and impact

Social Peace and Local Development (SPLD)

In Libya, the Social Peace and Local Development project continued to build local stability and community resilience to conflict through supporting Social Peace Partnerships (SPPs) in 20 Municipalities across the east, south and west and supporting three Regional Hubs to work together and deliver a joint national initiative.

The project made significant progress in enhancing local conflict management systems across Libya. Through the efforts of the SPPs, communities were better able to prevent and manage conflicts, contributing to reduced violence and improved gender equality and social cohesion. The work of the SPPs underscores the importance of community-based mechanisms in conflict resolution, emphasising inclusivity and gender-responsive peacebuilding approaches.

The project further developed SPPs as effective social accountability and community engagement platforms. These partnerships helped local government authorities better respond to community needs, fostering trust in democratic institutions and enhancing resilience to conflict.

The SPPs ability to engage constructively with local governments, public service entities, and security actors to resolve conflict and strengthen inclusive governance was evidenced by an independent review undertaken during the reporting period.

“[SPPs] are a valued and locally owned mechanism that addresses local conflict risk factors, de-escalates local tensions, reinforces local resilience, supports political participation, sensitively supports GESI, and enhances the conflict sensitivity of local development.”

Independent review of PCi’s Social Peace and Local Development Programme, commissioned by the British

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PEACEFUL CHANGE INITIATIVE (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) For the Period Ended 30 September 2025

Achievements and performance (continued)

Embassy Libya.

The past year also marked progress in fostering national reconciliation through regional cooperation. The establishment of a national SPLD hub and the creation of a national charter to prevent post-election violence were pivotal achievements. This charter, developed through extensive consultations with local leaders, civil society, and marginalised communities, emphasises accountability and the creation of legal mechanisms to manage election-related tensions. The accompanying media campaign reached a broad audience, including social media, radio, and television, ensuring widespread awareness. These efforts are crucial for ensuring a peaceful electoral environment and promoting national unity.

Civic Space project: PCi continued to implement the ‘Expanding civic space through providing technical support to local CSOs’ project, funded by the Dutch Embassy in Libya. The project has supported 18 Libyan CSOs in areas typically underserved by international funding (and against the backdrop of a shrinking civic space) through tailored training and grants. The project has contributed to strengthening the organisational capacity and sustainability of the CSOs, while also providing funding to them to deliver local initiatives, with a view to maintaining – and, where possible, expanding - a safe, open, and diverse civic space in Libya.

Post Disaster Relief Support in East Libya

In 2023 the coastal town of Derna in Eastern Libya was devastated by Storm Daniel, which caused much of the town and its residents to wash away. Derna had previously seen violent extremist groups operating within its environs. Analysis suggested that, following the Storm Daniel catastrophe, the scale of trauma and lack of services in the town may leave sections of the population vulnerable to recruitment by extremist groups again. As part of PCi’s broad-spectrum approach to peacebuilding in Libya, the Post Disaster Relief Support in East Libya project built capacity for the provision of psychosocial services and trauma counselling services in Derna.

Based on ground-breaking research into mental health in the town, the project rehabilitated and fitted out a psychosocial services centre, trained centre staff to provide trauma support services, and raised awareness about mental health and the availability of support within the town. The management of the centre was handed over to the local authorities when PCi ceased operations.

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PEACEFUL CHANGE INITIATIVE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) For the Period Ended 30 September 2025

Achievements and performance (continued)

c. Mozambique

The context

Mozambique's Cabo Delgado region has been experiencing conflict since 2017. Militants aligned to Islamic extremist groups have killed thousands and displaced more than a million. Whilst some of these militants came from neighbouring countries, Mozambicans have also joined in significant numbers, motivated by their social and economic marginalisation as the inhabitants of one of Mozambique's poorest regions. Discoveries of natural resource wealth in Cabo Delgado are yet to benefit local communities.

Against this backdrop, local and international humanitarian and development agencies have been continuing to deliver much-needed support to communities across Cabo Delgado. This support has included providing food aid, building shelter for displaced people and supporting healthcare and education. However, delivering humanitarian and development work in conflict is a complex endeavour, fraught with the risk of exacerbating tensions by benefitting one group over the other, or having materials and supplies diverted by armed groups or powerful elites.

How we work in Mozambique

PCi has worked in Mozambique since 2022, supporting national and international actors delivering humanitarian and development assistance in the north of the country. Our work helps those designing and delivering projects to work in a way that doesn’t exacerbate conflict and that maximises their contribution to sustainable peace.

The ongoing armed conflict in Cabo Delgado, Northern Mozambique, provides a set of challenges to national and international organisations in delivering effective humanitarian and development assistance. A lack of conflict sensitive practice by some companies and agencies has led to unintended consequences and hindered the delivery of aid to those who need it most. Conversely, humanitarian and development assistance have the potential to address underlying drivers of conflict and therefore contribute to building peace. This potential often goes unrealised.

Peaceful Change initiative is working to strengthen conflict sensitivity expertise amongst national and international humanitarian and development organisations and companies in northern Mozambique. In the past year, our focus has been on strengthening Mozambican capacity to provide conflict sensitivity advice and support. To this end we have cultivated a partnership with the Mozambican organisation MASC.

Our actions and impact

Partnership development with MASC and co-design of a conflict sensitivity hub for Mozambique. In response to a high demand for conflict sensitivity advice amongst donor and implementing agencies in Mozambique, PCi and MASC co-designed a conflict sensitivity hub that would provide a one-stop-shop for conflict analysis, training and advice, whilst also building Mozambican capacity to provide conflict sensitivity support long-term, reducing reliance on international organisations and consultants. Unfortunately, the conflict sensitivity hub has yet to be funded, but PCi has been able to provide initial training to MASC staff on conflict sensitivity and accompanied them in undertaking a conflict sensitivity assessment for a large international humanitarian agency.

Conflict sensitivity workshops for corporate social responsibility leads. At the request of the British High Commission PCi worked with 10 large companies operating in Mozambique to understand and address their challenges to delivering conflict-sensitive corporate social responsibility (CSR) programmes. Humanitarian and development agencies are unable to operate in parts of conflict-affected northern Mozambique, leaving gas and mining companies some of the only agencies able to operate. This makes the conflict sensitivity of CSR programmes particularly important.

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PEACEFUL CHANGE INITIATIVE (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) For the Period Ended 30 September 2025

Achievements and performance (continued)

d. Swahili Coast

The context

Along the Swahili Coast, natural disasters, ongoing political conflicts, violent extremism and the political and economic exclusion faced by young people have caused deteriorating economic and social conditions. Left unchecked, these interconnected issues have the potential to undermine peace and stability in the region.

How we work in the Swahili Coast

PCi is working along the Swahili Coast, including in Tanzania’s Mtwara and Tanga regions, in Kenya’s Kwale region, and in Mozambique’s Cabo Delgado region. Our aim is to support youth-led networks and organisations to actively practice and disseminate learning on peacebuilding and conflict prevention. We do this through working in collaboration with academics to produce and share knowledge, by providing training, and by offering ongoing support and advice to partner organisations.

Our actions and impact

During the report period we published research exploring opportunities for engaging young people in strengthening community peace and security, with including a focus on how cultural practices can support peace and social cohesion. This research was the culmination of a partnership with three academic institutions based in Kenya, Tanzania and Mozambique. The research was presented in two reports, one published in 2024 which focused on Kenya and Tanzania, and a second published in 2025 which focused on Mozambique. We also hosted virtual launch events for both reports, which were attended by over 100 representatives of NGOs, donor agencies, academia and governments. The findings of the research have enabled our partner, WeWorld, to adapt their programming to take advantage of the opportunities identified in the research to strengthen the engagement of young people in decision-making around peace and security in their areas:

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PEACEFUL CHANGE INITIATIVE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) For the Period Ended 30 September 2025

Achievements and performance (continued)

e. Provision of PCi technical support to peacebuilding and aid projects

Conflict sensitivity tools

We spent significant time in 2024 documenting and preparing to publish the considerable tools and guidance on conflict sensitivity that PCi has developed over the years. We did this in order to make these tools and knowledge accessible to anyone who would like to use them, and in an effort to contribute to the wider conflict sensitivity sector. These tools include our conflict sensitivity interactions typology and matrix, as well as a due diligence tool for decision-making. Alongside written materials, we created and shared four podcast episodes. These podcasts were well received and have also been a useful tool for PCi staff to communicate our approaches to partner organisations and donors.

Conflict sensitive assistance in Syria

Recognising that the fall of the Assad regime would fundamentally alter the way in which international assistance can be delivered in Syria, PCi worked with Syrian partners and the research consultancy COAR to develop a set of considerations for donors and implementing agencies seeking to operate in the changed context. The published report identifies four key issues that need to be considered from a conflict sensitivity perspective. The report was disseminated to key donor and international agency contacts in Syria, and continues to be used by partner organisations to advocate for conflict sensitive approaches to aid:

Communication on Engagement with the UN Global Compact

PCi confirms its support for the ten principles of the UN Global Compact with respect to human rights, labour, environment and anti-corruption. We continue to find to find ways to support the Global Compact in advancing these principles through our projects and programmes.

In the reporting period PCi has worked to ensure internal adherence to the UN Global Compact principles by implementing programme corruption-risk assessments (Principle 10).

Financial review

a. Going concern

As noted in the message from our Chair of Trustees and CEO, and as per note 2.3, the decision was taken in June 2025 to close down the Charity in an orderly fashion as a result of the challenging funding environment and changes to areas of focus of donors. As a result, these financial statements are prepared on a non-going concern basis.

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PEACEFUL CHANGE INITIATIVE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) For the Period Ended 30 September 2025

b. Reserves policy

Given the decision to close down the Charity, reserves of the Charity are being spent down accordingly. Any remaining reserves will be distributed at closure by the Charity to an appropriate organisation, in line with the Charity's governing document and with appropriate consideration given by the Charity Commission to distributions at close down.

c. Review of the period

Following the decision to close down the Charity, the reporting period was extended from 30 March 2025 to 30 September 2025 to coincide with the end of all of the Charity's active programmes. The prior reporting period covered the year to 30 March 2024. Income for the 18 month period to 30 September was £3,020,708 (2024: £3,612,088). Expenditure was £3,180,973 (2024: £3,834,909), leaving a deficit for the year of £160,265 (2024: deficit of £222,821).

At the balance sheet date, reserves totalled £117,000 (2024: £277,265), of which £23,929 (2024: £302,828) were held in restricted funds and £93,071 (2024 negative £25,563) in general funds. Any remaining reserves after allowing for a proper and orderly close down of the Charity will be distributed in accordance with the governing document.

d. Fundraising

PCi does not generate funds from the public at large and does not use professional fundraisers. PCi has not signed up to any voluntary codes of conduct regarding its fundraising activities. No complaints regarding fundraising activities have been received by the Charity.

e. Principal risks and uncertainties

The Charity has a risk management policy in place and the Trustees track risk trends and mitigation measures through a risk register on an ongoing basis. In addition, the Charity has a range of insurance policies in place and enlists the services of specialist companies to help analyse risks in the specific areas in which we operate.The key risks that are tracked by the Trustees include:

Structure, governance and management

a. Constitution

Peaceful Change initiative (PCi) was registered as a Charitable Company on 7 July 2015 (number 1162997). It has been registered as a Company Limited by Guarantee (number 07931944) since 1 February 2012. PCi is governed by a Memorandum of Incorporation dating from 1 February 2012 and Articles of Association as amended by special resolution dated 11 February 2024.

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PEACEFUL CHANGE INITIATIVE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) For the Period Ended 30 September 2025

Structure, governance and management (continued)

b. Methods of appointment or election of Trustees

PCi is governed by a Board of Trustees, which governs in accordance with the Charity Commission guidance laid out in its publications. The aim is to have an inclusive Board, with a mix of experience in thematic peacebuilding, management, financial management, fundraising, business development, and legal/risk management.

The Board currently consists of:

As part of preparing for PCi’s closure, and to streamline processes, a number of trustees resigned (in addition to Rukayat Omowonuola Owoade who resigned on 3 June 2024):

New trustees are identified by fellow trustees, together with the Chief Executive Officer, and invited to join the Board following a process of due diligence and substantial engagement to ensure that PCi’s charitable objectives are well understood by the incoming trustee. They are vetted in accordance with the Charity Commission guidance laid out in its publication CC30. Orientation for trustees, carried out by existing trustees and PCi senior management, includes familiarisation with:

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PEACEFUL CHANGE INITIATIVE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) For the Period Ended 30 September 2025

Structure, governance and management (continued)

c. Meetings, minutes, and decision making

The Board of Trustees has met regularly during the reporting period. Trustees monitored a number of potential scenarios for FY25 and FY26, and ultimately took the decision in June 2025 to close PCi and carry out an orderly wind up of the Charity.

The Board’s Risk Management Sub-Committee maintains and oversees PCi’s risk management policy and risk register. The Sub-Committee meets formally twice a year, and on an as-needs basis to support the Management Team with decision making during specific situations.

Financial controls are in place, with the Board being accountable for the Charity’s finances, and day-to-day responsibility for execution delegated to the Chief Executive Officer. The Board closely monitors the Charity’s accounts, analysing fund income and expenditure and planning overall spend against overheads. Appropriate policies and procedures are in place, and annual audits are carried out by Goodman Jones LLP. Goodman Jones LLP, or an alternative auditor specified by the donor, carries out audits at the close of individual grant funds.

Fleur Just remains as Chief Executive Officer, reporting directly to the Board of Trustees. Abigail Orr continues in her role as Finance and Operations Director. Rebecca Crozier Left her role as Programme Development Director in April 2025.

d. Pay policy for key management personnel

Remuneration of key management personnel (Chief Executive Officer and other key senior positions) is set by the Board, with due attention to availability of funds, responsibilities undertaken, market rates and the charity nature of the organisation.

Plans for future periods

The plans for the Charity are to proceed with a proper and orderly close down of the Charity in 2026.

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PEACEFUL CHANGE INITIATIVE

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) For the Period Ended 30 September 2025

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial period. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and 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 Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

Approved by order of the members of the board of Trustees and signed on their behalf by:

................................................

William Peace Chair

Date: 24-06-26

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PEACEFUL CHANGE INITIATIVE

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PEACEFUL CHANGE INITIATIVE

Opinion

We have audited the financial statements of Peaceful Change Initiative (the 'charitable company') for the period ended 30 September 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.

Emphasis of matter related to going concern

We draw attention to note 2.3 in the financial statements, which states that the Trustees have taken the decision to close down the Charity. As stated in note 2.3, these events or conditions, along with the other matters as set forth in the note 2.3, indicate that the basis of the financial statements should be on a non-going concern basis. Our opinion is not modified in respect of this matter.

In auditing the financial statements, we have concluded that the Trustees' use of the non-going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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PEACEFUL CHANGE INITIATIVE

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PEACEFUL CHANGE INITIATIVE (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

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 charitable 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 charitable company or to cease operations, or have no realistic alternative but to do so.

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(A Company Limited by Guarantee)

PEACEFUL CHANGE INITIATIVE

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PEACEFUL CHANGE INITIATIVE (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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.

Based on our understanding of the charity and sector, we identified that the principal risks of non-compliance with laws and regulations related to sector regulations and unethical and prohibited business practices, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, the Charities Act 2011, Charity Commission and sector regulations, and UK Tax Legislation. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements including the risk of override of controls). Appropriate audit procedures in response to these risks were carried out.

These procedures included:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members; and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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 Auditors' Report.

Page 17

PEACEFUL CHANGE INITIATIVE

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PEACEFUL CHANGE INITIATIVE (CONTINUED)

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an Auditors' 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Goodman Jones LLP

Chartered Accountants Statutory Auditors Statutory Auditors 1st Floor Arthur Stanley House 40-50 Tottenham Street London W1T 4RN 25-06-26 Date:

Goodman Jones LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 18

PEACEFUL CHANGE INITIATIVE

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) For the Period Ended 30 September 2025

Note
Income from:
Donations and legacies
4
Charitable activities
5
Other income
Total income
Expenditure on:
Charitable activities
Total expenditure
Net income/(expenditure)
Transfers between funds
14
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2025
£
12,113
59,320
250
71,683
(39,288)
(39,288)
110,971
7,663
118,634
(25,563)
118,634
93,071		 Restricted
funds
2025
£
2,949,025
-
-
2,949,025
3,220,261
3,220,261
(271,236)
(7,663)
(278,899)
302,828
(278,899)
23,929		 Total
funds
2025
£
2,961,138
59,320
250
3,020,708
3,180,973
3,180,973
(160,265)
-
(160,265)
277,265
(160,265)
117,000		 Total
funds
2024
£
3,525,880
86,208
-
3,612,088
3,834,909
3,834,909
(222,821)
-
(222,821)
500,086
(222,821)
277,265

The Statement of Financial Activities includes all gains and losses recognised in the period.

The notes on pages 23 to 38 form part of these financial statements.

Page 19

PEACEFUL CHANGE INITIATIVE

(A Company Limited by Guarantee) Registered number: 07931944

BALANCE SHEET As at 30 September 2025

Note
Fixed assets
Tangible assets
10
Current assets
Debtors
11
Cash at bank and in hand
Current liabilities
Creditors: amounts falling due within one
year
12
Net current assets
Total assets less current liabilities
Provisions for liabilities
Net assets excluding pension asset
Total net assets
Charity funds
Restricted funds
14
Unrestricted funds
14
Total funds		 54,873
188,097
242,970
(43,946)		 30
September
2025
£
-
-
199,024
199,024
(82,024)
117,000
117,000
23,929
93,071
117,000		 715,394
147,193
862,587
(589,377)		 30 March
2024
£
4,055
4,055
273,210
277,265
-
277,265
277,265
302,828
(25,563)
277,265

The entity was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the entity to obtain an audit for the period in question in accordance with section 476 of the Companies Act 2006.

However, an audit is required in accordance with section 144 of the Charities Act 2011.

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

Page 20

PEACEFUL CHANGE INITIATIVE

(A Company Limited by Guarantee)

BALANCE SHEET (CONTINUED) As at 30 September 2025

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

William Peace Chair

Date: 24-06-26

The notes on pages 23 to 38 form part of these financial statements.

Page 21

PEACEFUL CHANGE INITIATIVE

(A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS For the Period Ended 30 September 2025

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Cash inflows from new borrowing
Repayments of borrowing
Net cash (used in)/provided by financing activities
Change in cash and cash equivalents in the period
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
The notes on pages23 to 38form part of these financial statements		 2025
£
96,220
(5,316)
(5,316)
-
(50,000)
(50,000)
40,904
147,193
188,097		 2024
£
(448,414)
(3,047)
(3,047)
50,000
-
50,000
(401,461)
548,654
147,193

Page 22

(A Company Limited by Guarantee)

PEACEFUL CHANGE INITIATIVE

NOTES TO THE FINANCIAL STATEMENTS For the Period Ended 30 September 2025

1. General information

Peaceful Change Initiative is a charitable company, limited by guarantee, registered in England and Wales, and whose registered office address is 1st Floor, Arthur Stanley House, 40-50 Tottenham Street, London, W1T 4RN. The Charity's objects are the promotion of conflict resolution and reconciliation as stated in the Trustees' Report.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Peaceful Change Initiative meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

The current reporting period covers a period of more than 12 months, from 31 March 2024 to 30 September 2025. The comparative reporting period covers the 12 months ended 30 March 2024.

2.2 Company Status

The Charity is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the Charity.

2.3 Going concern

During the period, after considering the future plans of the Charity, expected future income, the current funding climate, and wider geo-political priorities, the Trustees have taken the decision to close down the Charity. The decision was taken to extend the reporting date to 30 September 2025 as all charitable activity had ceased by this date, and the Charity will then be closed down in an orderly fashion. As a result, the financial statements have been prepared on a non-going concern basis with close down costs, including any staff redundancy costs, accrued in these financial statements where relevant and appropriate.

2.4 Consolidation

The Charity operates internationally and has established legal entities in Libya (Peaceful Change Initiative, Libya - registered as a Civil Society Organisation), Tunisia (Peaceful Change Initiative, Tunisia), and Ukraine (Representative Office of Peaceful Change Initative - a division of a foreign non-governmental organisation). These entities are to enable operation of PCI at a local level and all operations and accounting transactions are managed and accounted for through the UK charity for all entities. As such consolidated financial statements are not required. All of these entities have now been closed as part of the closing down of PCi.

Page 23

PEACEFUL CHANGE INITIATIVE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the Period Ended 30 September 2025

2. Accounting policies (continued)

2.5 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

2.6 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grant income is recognised once the above criteria are met, together with any performance conditions attached to the grant. Grant income is deferred when the Charity has received the funds but has not yet met the recongition criteria, including fulfilling all relevant performance conditions.

Donated services or facilities are recognised when the Charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the Charity of the item is probable and that economic benefit can be measured reliably.

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the Charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Income from charitable activities is recognised in the period in which it is receivable and to the extent that the associated services have been completed.

2.7 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.

Page 24

(A Company Limited by Guarantee)

PEACEFUL CHANGE INITIATIVE

NOTES TO THE FINANCIAL STATEMENTS For the Period Ended 30 September 2025

2. Accounting policies (continued)

2.8 Expenditure

Expenditure is recognised, inclusive of irrecoverable VAT, once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.

Grants payable are charged in the period when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the period end are noted as a commitment, but not accrued as expenditure.

2.9 Government grants

Government grants are recongised upon the completion of the relevant performance-related conditions. Grants that are not subject to performance-related conditions are credited to the Statement of Financial Activities as the grant proceeds are received. Grants received prior to the revenue recognition criteria being satisfied are recognised as a liability.

2.10 Operating leases

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

2.11 Tangible fixed assets and depreciation

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities incorporating Income and Expenditure Account.

Page 25

PEACEFUL CHANGE INITIATIVE (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the Period Ended 30 September 2025

2. Accounting policies (continued)

2.11 Tangible fixed assets and depreciation (continued)

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .

Depreciation is provided on the following basis:

2.12 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.13 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.14 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.

2.15 Liabilities

Liabilities and provisions are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

2.16 Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Page 26

PEACEFUL CHANGE INITIATIVE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the Period Ended 30 September 2025

2. Accounting policies (continued)

2.17 Taxation

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 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

2.18 Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of transaction. Exchange gains and losses are recognised in the Statement of Financial Activities incorporating Income and Expenditure account.

2.19 Pensions

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the period.

3. Critical accounting estimates and areas of judgement

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.

Critical accounting estimates and assumptions:

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The Trustees have not identified any estimates and assumptions that are considered to have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Income recognition - the Charity receives income from contracts and performance grants. These agreements can include various qualitative and quantitative milestones and performance conditions to be met in order for the Charity to have entitlement to the funds. The Charity makes various assumptions in determining the stage of completion of these contracts and performance grants.

Page 27

PEACEFUL CHANGE INITIATIVE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the Period Ended 30 September 2025

4. Income from donations and legacies

Unrestricted
funds
2025
£
Donations
12,113
Grants
-
12,113
Total 2024
3,325		 Restricted
funds
2025
£
-
2,949,025
2,949,025
3,522,555		 Total
funds
2025
£
12,113
2,949,025
2,961,138
3,525,880		 Total
funds
2024
£
3,325
3,522,555
3,525,880

Grant income is received from UK and non-UK governments and governmental organisations. During the period, the Charity received grants totalling £1,733,810 (2024: £2,027,608) from the UK government.

5. Income from charitable activities

Unrestricted
funds
2025
£
Conflict resolution and peacebuilding
59,320
Total 2024
86,208		 Total
funds
2025
£
59,320
86,208		 Total
funds
2024
£
86,208

6. Analysis of expenditure by activities

Conflict resolution and
peacebuilding
Total 2024		 Activities
undertaken
directly
2025
£
2,247,699
3,133,450		 Grant
funding of
activities
2025
£
366,745
308,512		 Support
costs
2025
£
566,529
392,947		 Total
funds
2025
£
3,180,973
3,834,909		 Total
funds
2024
£
3,834,909

Page 28

(A Company Limited by Guarantee)

PEACEFUL CHANGE INITIATIVE

NOTES TO THE FINANCIAL STATEMENTS For the Period Ended 30 September 2025

6. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Depreciation
Travel
Rent
Insurance
Light and heat
Office expenses
Printing, postage and stationery
Telephone
IT support
Legal and professional fees
Accountancy
Audit
Staff welfare and training
Bank charges
Surplus/deficit on foreign currency
Sundry expenses
Subscriptions
Trustees' meeting expenses
Loss on disposal of fixed assets
Total 2024		 Conflict
resolution
2025
£
386,529
4,811
14,442
13,570
23,134
40
1,265
580
964
23,023
18,565
1,020
16,170
209
1,185
56,224
3,596
-
501
701
566,529
392,947		 Total
funds
2025
£
386,529
4,811
14,442
13,570
23,134
40
1,265
580
964
23,023
18,565
1,020
16,170
209
1,185
56,224
3,596
-
501
701
566,529
392,947		 Total
funds
2024
£
220,426
5,548
20,810
22,483
24,643
246
626
8
442
13,516
18,380
600
12,840
1,809
981
46,687
97
1,677
1,128
-
392,947

Page 29

(A Company Limited by Guarantee)

PEACEFUL CHANGE INITIATIVE

NOTES TO THE FINANCIAL STATEMENTS For the Period Ended 30 September 2025

7. Analysis of grants

Conflict resolution and peacebuilding
Total 2024		 Grants to
Institutions
2025
£
366,745
308,512		 Total
funds
2025
£
366,745
308,512		 Total
funds
2024
£
308,512

Grants were awarded in the period to local organisations towards intra-community, social integration and peacebuilding projects as part of the Charity's projects, and ranged from c. £150 - £48,000. Grants are only awarded where the activities and projects being funded will be used in line with Peaceful Change initiative's charitable objectives.

8. Staff costs

Wages and salaries
Pension Costs
National Insurance costs		 2025
£
1,236,651
23,107
51,913
1,311,671		 2024
£
1,252,819
22,456
49,750
1,325,025

Included within wages and salary costs above are redundancy payments totalling £108,931 (2024: £nil).

The average number of persons employed by the Charity during the period was as follows:

Administration and management
Projects		 2025
No.
5
14
19		 2024
No.
5
19
24

Page 30

(A Company Limited by Guarantee)

PEACEFUL CHANGE INITIATIVE

NOTES TO THE FINANCIAL STATEMENTS For the Period Ended 30 September 2025

8. Staff costs (continued)

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2025 2024
No. No.
In the band £60,001 - £70,000 1 2
In the band £70,001 - £80,000 1 -
In the band £100,001 - £110,000 1 -

Remuneration including employer's national insurance and pension contributions totalling £271,410 (2024: £210,300) was paid to key management personnel.

The figures for staff costs banding and the key management personnel remuneration for 2025 reflect an extended 18 month period, compared to a comparative 12 month period.

9. Trustees' remuneration and expenses

During the period, no Trustees received any remuneration or other benefits (2024 - £NIL) .

During the period ended 30 September 2025, expenses totalling £ 501 were reimbursed or paid directly to 2 Trustees (2024 - £1,128 to 1 Trustee) .

Page 31

(A Company Limited by Guarantee)

PEACEFUL CHANGE INITIATIVE

NOTES TO THE FINANCIAL STATEMENTS
For the Period Ended 30 September 2025
10.
Tangible fixed assets
At 31 March 2024
Additions
Disposals
At 30 September 2025
At 31 March 2024
Charge for the period
On disposals
At 30 September 2025
Net book value
At 30 September 2025
At 30 March 2024
11.
Debtors		 Fixtures and
fittings
£
58,073
5,316
(63,389)
-
54,018
4,812
(58,830)
-
-
4,055
Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 30
September
2025
£
54,739
94
40
54,873		 30 March
2024
£
203,261
3,939
508,194
715,394

Page 32

(A Company Limited by Guarantee)

PEACEFUL CHANGE INITIATIVE

NOTES TO THE FINANCIAL STATEMENTS For the Period Ended 30 September 2025

12. Creditors: Amounts falling due within one year

Trade creditors
Other creditors
Accruals and deferred income
Deferred Income
Deferred income at 31 March 2024
Resources deferred during the period
Amounts released from previous periods
Deferred income at 30 September 2025		 30
September
2025
£
1,236
-
42,710
43,946
30
September
2025
£
285,213
-
(285,213)
-		 30 March
2024
£
184,557
50,000
354,820
589,377
30 March
2024
£
396,902
177,021
(288,710)
285,213

Deferred income represents grant income received for programme expenditure where associated performance conditions had not been met at the balance sheet date.

13. Provisions

Additions Redundancy
and closure
provisions
£
82,024
82,024

Page 33

PEACEFUL CHANGE INITIATIVE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the Period Ended 30 September 2025

14. Statement of funds

Statement of funds - current period

Unrestricted funds
General Funds - all funds
Restricted funds
Libya Programs
Syria Programs
Black Sea Programs
UK Programs
SE Africa
Total funds		 Balance at
31 March
2024
£
(25,563)
287,563
4,128
11,137
-
-
302,828
277,265		 Income
£
71,683
2,907,143
(3,880)
14,817
13,428
17,517
2,949,025
3,020,708		 Expenditure
£
39,288
(3,170,777)
(873)
(16,524)
(13,428)
(18,659)
(3,220,261)
(3,180,973)		 Transfers
in/out
£
7,663
-
625
(9,430)
-
1,142
(7,663)
-		 Balance at
30
September
2025
£
93,071
23,929
-
-
-
-
23,929
117,000

Page 34

(A Company Limited by Guarantee)

PEACEFUL CHANGE INITIATIVE

NOTES TO THE FINANCIAL STATEMENTS For the Period Ended 30 September 2025

14. Statement of funds (continued)

Statement of funds - prior period

Unrestricted funds
General Funds - all funds
Restricted funds
Libya Programs
Syria Programs
Black Sea Programs
UK Programs
SE Africa
Total funds		 Balance at
31 March
2023
£
47,964
437,978
4,128
10,016
-
-
452,122
500,086		 Income
£
89,533
2,366,737
605,850
472,565
274
77,129
3,522,555
3,612,088		 Expenditure
£
(163,060)
(2,517,152)
(605,850)
(471,444)
(274)
(77,129)
(3,671,849)
(3,834,909)		 Balance at
30 March
2024
£
(25,563)
287,563
4,128
11,137
-
-
302,828
277,265

Restricted funds comprise the following:

Libya - this programme focuses on strengthening the capacity of local leaders to manage conflict during the country's political transition, and aims to reduce tensions within and between communities as well as contributing to laying the foundations for a political settlement at a national level.

Syria - the work in Syria supports UN-led efforts to develop a political solution to the conflict, in line with UN Security Council Resolution 2254. The transfer represents a shortfall covered by general funds.

Black Sea - this programme focuses on strengthening the capacity of civil society organsiations to design and carry out effective peace and confidence building projects across conflict boundaries. The transfer represents a reclassification of expenditure allocated to general funds in 2024 rather than to the Black Sea restricted fund.

UK - this programme focuses on engagement with the UK government (through the parliament and the civil service) to promote conflict sensitivity in the UK’s foreign policy. The programme also supports UK institutions to promote social cohesion in the UK.

SE Africa - this programme focuses on supporting youth-led networks and organisations to actively practice and disseminate learning on peacebuilding and conflict prevention. The transfer represents a shortfall covered by general funds.

Page 35

(A Company Limited by Guarantee)

PEACEFUL CHANGE INITIATIVE

NOTES TO THE FINANCIAL STATEMENTS For the Period Ended 30 September 2025

15. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
30
September
2025
£
Current assets
219,041
Creditors due within one year
(43,946)
Provisions for liabilities and charges
(82,024)
Total
93,071		 Restricted
funds
30
September
2025
£
23,929
-
-
23,929		 Total
funds
30
September
2025
£
242,970
(43,946)
(82,024)
117,000

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
30 March
2024
£
4,055
187,277
(216,895)
(25,563)		 Restricted
funds
30 March
2024
£
-
675,310
(372,482)
302,828		 Total
funds
30 March
2024
£
4,055
862,587
(589,377)
277,265

Page 36

PEACEFUL CHANGE INITIATIVE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the Period Ended 30 September 2025

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

Net expenditure for the period (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Loss on the sale of fixed assets
Decrease in debtors
Decrease in creditors
Net cash provided by/(used in) operating activities
17.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
18.
Analysis of changes in net debt
At 31 March
2024
£
Cash at bank and in hand
147,193
Debt due within 1 year
(50,000)
97,193		 30
September
2025
£
(160,265)
4,811
4,560
660,521
(413,407)
96,220
30
September
2025
£
188,097
188,097
Cash flows
£
40,904
50,000
90,904		 30 March
2024
£
(222,821)
5,549
-
233,458
(464,600)
(448,414)
30 March
2024
£
147,193
147,193
At 30
September
2025
£
188,097
-
188,097

Page 37

PEACEFUL CHANGE INITIATIVE

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS For the Period Ended 30 September 2025

19. Pension commitments

The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost charge represents contributions payable by the Charity to the fund and amounted to £23,106 (2024: £22,456) in the year. Contributions totalling £1,187 (2024: £2,567) were payable to the fund at the balance sheet date and are included in creditors.

20. Operating lease commitments

At 30 September 2025 the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

30
September 30 March
2025 2024
£ £
Not later than 1 year - 4,500

21. Related party transactions

During the period, £2,355 (2024: £37,121) was paid to the spouse of a member of key management personnel for consultancy and project advisory services provided during the year, and £57 (2024: £4,621) was paid for expenses reimbursed. At the balance sheet date, an amount totalling £nil (2024: £1,717) was owed by the Charity in respect of these services.

During the period, donations of £3,000 (2024: £3,500) were received by the Charity from Trustees and related parties. No restrictions were attached to these donations.

During the period, two separate loans of £25,000 were received from a trustee and from a member of key management personnel. Both were repaid in full in the period. No interest was charged on either loan.

22. Controlling party

The Charity is under the control of the members. There is no overall individual controlling party.

Page 38