Charity Registration No. 1164818 Company Registration No. 07998339 (England and Wales) FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE CONSOLIDATED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 FUSION FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE LEGAL AND ADMINISTRATIVE INFORMATION Trustees Ms A Astburv Mr T Cahill Mr E Live5ey Mr Christopher Murray Miss Claire Baxter Ms A Taylor P Pemberton TJ Wilde W C Gales (Appointed 10 December 20251 (Appointed 10 December 20251 (Appointed 10 December 20251 Secretary Mr M Chadwick Charlty number IEn8land and Wales) 1164818 Company number 07998339 Reglstered offlce Unit 2 Puma Court Kings Bu5ine5s Park Know51ey Me￿eY51de L34 IPJ Auditor Mitchell Charlesworth (Auditl Limited Suites C,D,E, & F 14th Floor Th& Plaza 100 Old Hall Street Liverpool L3 9QJ Bankers Barclays Bznk PLC Liverpool Branch 488. 50 Lord Street Liverpool Mersey5ide L2 ITD FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE CONTENTS Page Trustee5' report 1-46 Statement of trustees, responsibilities 47 Independent auditor's report 48-51 St3tement of financial activities 52-53 Balance Sheet 54 ststement of cash flows 56 Notes to the financial st8tements 57-82 FUSIQN Trustee Report 2024-25 *é I IIL I'L .i/¢prJk If Itcf Prwd Pro¥wkrs ol with Purpu5P Contents Contents From our Chair and Chief Executive 2024-25 Headlines Fusion21 Foundation Impact Report Fusion21 Ltd Financials Governance Future Plans and Objectives 40 41 42 45 2024-25 Trustee Report From our Chair and Chief Executive This year has marked a period of significant growth, innovation, and ambition for the Fusion21 Group. As a Foundation, we have focused on becoming a more flexible and responsive funder; one that listens deeplyi collaborate5 widelyi and adapts with purpose. The impact delivered across 2024-2025 reflects real progress toward that vision. Over the past year, we invested more than £l.I million in grants, reaching thousands of people across our members, communities. Our work has supported individuals into employment, strengthened financial security for families, empowered young people and women facing complex challenges, and improved health and wellbeing across a wide range of local contexts. We are particularly proud of our deepening focus on community voice, with resident-led research and engagement shaping programmes, influencing policy, and strengthening l(Kal decision-making. These partnerships have helped charities navigate financial pressures, strengthen governan￿, and build the confidence and capability needed for long-term sustainability. We also pla￿d collaboration and partnership working at the core of our approach. Through collaborations with HACT, G15, Longleigh Foundation, and other5, we have contributed to national conversations on p)verty, tenant voice, age-friendly housing, and the future of social housing innovation. These alliances are helping us ensure that learning, evidence, and lived experience drive meaningful change across the sector. Our procurement service supported members to procure over £634m of works, generating £44m in procurement efficiency savings and over £IOOm in social impact. This included generating over 3,000 employment opportunities and creating training opportunities for over 2,000 people. Four frameworks were renewed during the period, worth a total over £1.3b in value and are a direct result of our inclusive approach to developing and updating our offer. We would like to extend our heartfelt thanks to our people for their dedication and positivity throughout this journey. Your commitment inspires us, and together we look forward to building an even brighter future. As we move into 2025-26, we plan to deepen our relationship with members, continue to build our partnerships, and embrace innovation. Above all, we remain focused on delivering impact that matters; to improves lives, build resilience, and support thriving communities across the UK. Chris Murrayi Group Chair Dave Neilson, Group Chief Executive 202+25 Trustee Report 2024-25 Headlines iTrer 1,100 members Supwrting over 1,200 procurement projects £634 contract SFend £44m efficiency savings generated £IOOm+ social irnpact generated 3,182 employment outcomes generat8 2,000+ trainirvJ outcomes SUPFOrted Fusion21 Foundation Find out more about our impact in 2024-25 through our Impact Report. 202+25 Trustee Report FUSIQN Foundation Impact Report 2024 - 2025 Proud Pmwiders ol S*ocurnnont with Purw Contents Introduction 07 Impact at a glance Achievements and performan 10 Employment and skills 14 Health and wellbeing 16 Financial inclusion and ￿lIlence 21 Community voices Partnering as a thought leader 33 Social investment 35 Looking ahead to 2025 12026 37 Introduction This year ha5 marked significant progress for the Fusion21 Foundation. The ambitions we set last year have been exceeded, and our vision - to be a flexible, responsive funder that listens, adapts, and leads- hastaken shapethrough our impactful work and the partnerships we ve developed. local ecosystems and where our support can have the greatest systemic impact. Our commitment to supporting 'Tenant Voice, remains a priority. The research we co-funded with G15 and Longleigh Foundation in this area has shaped our thinking and infomied our next steps. We are determined to build on this legacy Being rec(NJnised by IVAR as a 'Flexible Funder. and ensure tenant experience continues to guide last year was a key milestone, reinforcing our policy and investment decisions. beliefthat howwe fund matters as much aswhat wefund. Sincethen, we'veembraced continuous We also began exploring climate as a future improvement, ensuring collaboration and sector funding area, identifying where we can add value insight informs how we operate, within our core priorities. This work will grow in prominence in the year ahead as we look to pilot new approaches and test ideas through both grants and social investment. Our VCSE Sector Resilience Programme has continued to grow, supporting organisations to adapt amid ongoing challenges and guiding us to make more strategic, targeted investments. We continue to explore collaborations with partners who share our commitment to sector sustainability. Health and wellbeing, employment and skills, and financial inclusion remain central to everything we do, and this year has shown the )tential for innovation and greater impact across all areas. As we look ahead, we do so with clarity, commitment, and optimism for what we can achieve together. We've also strengthened our focus on sector infrastructure with the VCSE sector, deepening our understanding of what underpins resilient Foundation Impact Report Impact at a glance We're passionate about creating meaningful change, improving lives and empowering brighter futures within our communities. Here is an overview of the impact achieved by the projects we supported this year: Employment and skills 67 56 people supported into training people supported into employment community~led research study on employment support employability hub developed 32 people supported to boost their digital skills 31 people trained to becommunity Resea￿herS dlgltal skUI$ rnpgrt eor youth Foundation Impact Report Health and wellbeing 52 women had decreased anxietyafter accessing a domesticabuse online programme 245 people Improved thelr mental health 164 people had increased confidence to recognlse unhealthy relationships impad report shaped agtrfrtendty 82 people built stronger communityties feasibllity study on a National Voice for Tenants Foundation Impact Report Financial inclusion and resilience 269 retrofit evaluation guided future design people reduced rentarrearsandlor lowered their debt 223 50 people stabilised or improved their finances people improved their confidence in managing money 214 people gained financial literacy 1113 93 people benefited from improved food security households supported with fuel vouchers Foundation Impact Report Supporting the resilience of the VCSE sector 397 24 housing associations referred 146 VCSE partners for support days of bespoke consultancy provided £670,000 in core grants Achievements and performance Proud Providers of Procurement with Purpose Foundation Impact Report It's been a successful year for the Foundation, with £1,146,116 of grants distributed. £1.146.116 grants distributed Grants programme Our spending on grants covered our priority areas as follows: 19% 240/0 510/0 6% Employment and Skills Health and Wellbeing Financial Inclusion and Resilien Othe 1 Supporting wider objectives ayound sector collaboration a￿d supporting commumity voice5. The geographical distribution of our mainstream grant provisions is as follows: UK-wide 220/0 England-wide 4(P/o 14orth West England IiO/o London 160/0 South East England West Midlands East Midlands 10/0 13 Employment and skills kj oud Prowldern of PrO¢um￿nt wlth Pwp05• Foundation Impact Report Future Focus Project: Empowering communities in South Liverpool "I became more confident in myself and wlls able to communicAte more clearly tn pplications and interviews. The Future Focus programme helped me tremendously in achieving my goals andgave me the confidence to gain my first fvlltime job in over 24 years. Our collaboration with Torus entered its second and final year, continuing to deliver real impactthrough the Future Focus Project. Designed to improve financial wellbeing through employment in South Liverpool, the programme has been especially effective in supporting individuals for whom English is an additional language. Over the past year: 196 participants have accessed tsilored support and guidance- of whimn arefrom Black and racially minoritised communities secured 67- employment QD56 56 havetaken theirfirst Stepsintotraining and upskilling opportunities. AAA The transformation we ve seen is a testament to the power of targeted, community-led support and Torus is now embedding the learning from this project into their wider employment and training offer. Rethinking employment support: Insight-driven innovation with Transform Lives Company This year, we supported Transform Lives Company (TLC) in their partnership with This is Capacity CIC to reimagine local employment support-designed and delivered based on real community needs. Through the national 'Jobs Plus, pilot, TLC secured a unique opportunity to create and test an alternative model to the traditional Job Cerltre. As the lead delivery partner for Plus Dane Housing in a local pilot, they've established a new employment support hub in Toxteth, aiming to reach 1,000 households with MO￿ personalised, place-based support. What sets this work apart is the emphasis on deep listening and learning. With our funding, TLC embedded community-based research at the heart of their pilot, capturing the lived experiences, barriers, and aspirations of unemployed people in the a￿a. These valuable insights have not only shaped the pilot itself but are also informing TLC'S future service design. Additionally, they are influencing how employment support is commissioned locally and contributing to broader discussions about devolution. 15 Foundation Impact Report Empowering youth workers for the Digital Age We funded the National Youth Agency (NYA) to research the digitsl skills of youth workers, leading to the launch of the Di ital Youth Work Standards, supported by the Department for Culture, Media and Sport (DCMS). The research revealed: Only ofyouth workers had reoived digitsl*pecifi¢ training 36% citejj fearof the unknown as a major barrier The Digital Youth Work Stsndards are designed to help youth workers effectively utilise digitsl technology to enhan￿ their programmes. They focus on identifying how technology can add value, expand outreach, and address the specific needs of young people. This approach ensures that youth work remains relevant and accessible, especially for those who encounter barriers to traditional Servi￿5. With 99 % of young people aged 12-15 regularly using the internet, these standards play a crucial role in engaging youth where they are - online. 99% young people aged 12-15 are regularly online By addressing gaps in digitsl skills, the stsndards empower youth workers to provide better support for young people in today's digital landscape. Expanding opportunities through employability support Using capital funding from the Fusion21 Foundation, we've helped Fareshare Midlands develop to a dedicated employability hub and forklift truck training centre in partnership with Challenge TRG. This facility is the first of its kind and will offer hands-on work experience, and job opportunities in warehousing and logistics. It will also provide tsilored support to help individuals build essential skills, gain confidence and accredited training, and overcome barriers to employment. The model offers a low-risk way to generate income, which can be reinvested in the charity. This enhances employability offerings and ensures long-term sustainabilty while supporting Fareshare's broader goals of food redistribution. 16 Health and wellbeing Proud Providers of Procurement with Purpose Foundation Impact Report Transforming Lives Through Health and Support Our ongoing £145,000 partnership with New Horizon Youth Centre (NHYC) is creating meaningful change for young people experiencing homelessness across London. Over three years, this collaboration is enabling NHYC to deliver crucial health services to young people aged 16-24, enhancing their wellbeing and complementing the organisation's broader sUPPOrt work. In the past year, 305 young people accessed support through NHYC'S dedicated Health Team. A new Therapeutic Practitioner role has strengthened collaboration between the Health Team and other key areas, such as Rough Sleeping and Youth Justice, allowing for more integrated and responsive care. The role has been instrumental in triaging complex cases, helping young people navigate both statutory and NHYC'S internal health services. £ia4_noo donated over three years The team has also expanded the delivery methods for therapy, offering walking, phone, and video sessions alongside more traditional approaches. In addition, they have trialled Single Session Therapy- a flexible, CB-informed model suited to the needs of displaced young people, offering immediate support without long-term commitment. To evaluats the impart of this Wor￿ NHYC commissioned an independent evaluation by Flourish Nonprofits. Keyfindings indude: of young people reported Imwoved mental health demonstrated greater advocacyski11s noted better physical health The evaluation also highlighted the team's ability to address both uryent needs and long-term wellbeing: // The team maintains capacityfor urgent interventions whilst working with young people on improving long-tenn self-advocacy and self-management of health needs. Gtven the level of Urgent need within its usergroup, it ts to their credit that the team also mfinages to provide effective long-terni preventative support. NHYC'S Health Team continues to serve as a lifeline, improving health outcomes, promoting independence, and empowering hundreds of young people to build brighter futures. 18 Foundation Impact Report Supporting age-friendly housing Continuing to support HA￿'S two-year Age Friendly Social Housing Programme, we're proud tosee their Im act Re ortand Recommendations published. Key insights from the programme include: A call for a cultural shift that truly values the unique needs of older people. The importanceof collaboration among housing providers and other stakeholders. A need for regular staff training and clearly defined housing criteria that reflects what older residents want and need. Thevalue of community investment in shaping MO￿ inclusive and supportive living environments. These findings are helping to pave the way for more age-friendly housing and seNices across the sector. Empowering women with Tomorrow's Women Through Magenta Living, we were intrOdU￿d to Tomorrow's Women, a women-led charity supporting those facing challenges such as domestic abuse, mental health issues, substance misuse, low confidence, and social isolation. The charity has now launched its new online platfonn, fvnded by the Fusion21 Foundation- offering a six-week, holistic and creative domestic abuse programme designed to: Provide emotional and practical support. Help women feel less alone and more empowered. Reach those who may not be able to attend in-person ￿NI￿s. Programme benefits have included: women, rKelvlngvltal supportand awareness whentlw needed itmost of women reportlng decreased anxFety rep¢)rtlny Increased mood levels 19 Proud Providers of Procurement with Purpose 114111 164 p￿pIe reported tontKlence In raxwniglng unheJl¢hyrelationships Supporting domestic abuse prevention with fresh visions We have continued to support Southern Housing Group's Fresh Visions charity with their pilot project'Respect', aimed at preventing domestic abuse in social housing. The project is focused on educating and building skills to break cycles of domestic violence and abuse. This year, the projert engaged with: 144 20 young people adults Attivities included skills sessions on anger management and building healthy relationships, along with support from key workers, and therapeutic servi￿. A total of 164 people ret)orted an increased confidence in recognising unhealthy relationships. The project will develop a prevention toolkit for broader use within the social housing sector. 20 Financial inclusion and resilience Pr￿d Prnidern of FI￿￿re1¥￿ent with Puryw Fuel debt relief through HACT: Supporting households in crisis Our £300,000 grant to HA￿ at the end of 2023124 enabled the launch ofthe HA￿ Fuel Fund in spring 2024. The funding supported targeted initiatives: a debt reduction fund for residents in the 63 Local Authorities with the highest hardship index scores (via Fusion21 member referrals only), and a dedicated fund for British Gas customers accessible through 180 referral organisations. Together, these initiatives distributed £270,592.21 to 714 households through 65 social housing providers. In winter 2024125, we contributed an additional £250,000 to a second debt reduction scheme ringfenced for Fusion21 members. Supporfwascapped at£650 per household and limited to 10 referrals per housing provider to maximise reach. The wlnter fund dellvtral £225,370.30 in sVPp￿tt0 399 h￿seholdS via 75 so(ial housiry partners Improving lives through Clarion's responsive retrofit pilot In February, the evaluation of Clarion's Res onsive Retrofit ilot was published. The project was launched in 2023 by Clarion Futures to help tenants in energy- inefficient homes manage fuel costs while awaiting major retrofit works. The evaluation, funded by the Fusion21 Foundation and conducted by the National Energy Action's Research Team, examined the impact of combining tailored financial and energy advice with small-scale efficiency upgrades over a 12-18-month period. The support provided included holistic home energy assessments, warm home packs, and practical guidance to help reduce energy costs. Outcomes included: Immediate relief via food vouchers, vital appliances and furniture. greater ease in affording home energy bills,. and improving residents, confidence in managing their household budget. A range of longer-term impacts, such as improvements in household budgets, damp and mould reduction, and enhanced self-reported health and wellbeing associated with reduced anxiety and financial stress. A contribution to reducing the impact of the cost- of-living and energy crises. While 790/0 of respondents still rep)rt difficulty heating their homes, this figure has decreased by 17 % . The number of households able to keep their homes warm during cold weather rose from just 5% before support to 21 % after the intervention. Little Village: Delivering baby packs to maternity wards In January, we began athree-yearcommitmentto support baby bank charity Littlevillage in expanding their hospital partnership programme. This initiative provides essential baby packs to expectant mothers who arrive at maternity units without the basics - often due to homelessness, insecure housing, domestic abuse, financial hardship, or refugee and asylum-seeking status. The goal is ambitious: to reach at least 52EO/. of maternity wards across London. These packs offer more than just physical items, they provide immediate relief, reduce stress and anxiety, and let mothers knowthey're not alone. With this partnership, every mum arriving at hospital without essentials for their newborn will receive the support they need. We look forward to sharing the impact of this work in future reports. 24 Proud Providers of Procurement with Purpose Foundation Impact Report Hometruths House Supporting successful tenancies We have now concluded the funding for the Hometruths House pilot, delivered in partnership with Clarion Housing Group. Designed for new tenants aged 18-30, the programme helped participants gain confidence in managing their tenancy and understanding their new home. This year: "I am so glad I took part in the programme, I've recently started budgeting to help wit money management." "Helped ease anxiety with having my first tenancy." partiopants reported improved mentsl health, Increased ￿nfiden￿ and a gra*rsenseof contrd intheirlive& ID cct0t￿, the HornePrLth5 House e.learnlng vldeo lau￿tr￿, expaidiThJ cess to thE prc4Jr¢mme, FAJildir¥J on its sJCC￿5. aarion i¢Y•V pldilS Iv bioadei i Ui¥ offe", tailo"IrvJ 5WOnS tc a wider rI￿qe of rKidp.nt%, indiiding those a¢pd 55+ IA*￿ a recentty bereaved. Proud Providers of Procurement with Purpose Foundation Impact Report Cooking up change: Incubating community food ventures In partnership with Cook for Good, Peabody Community Foundation has launched a social innovation incubator aimed at tackling health and financial inequalities through the power of fcx)d and cooking. Backed by our grant of over £60,000, the 18-month programme will mentorand support 20 community-led food ventures. The goal is to help participants develop sustainable social enterprise models that strengthen local economies, improve wellbeing, and build more resilient, healthier neighbourhoods. This phased pilot will test new ways of turning community passion into lasting, locally driven change. We look forward to sharing its impact in future reports. More than a pantry: A hub for community resilience "The Prtntry has been a Itfelinefor me. Not only does ithelp me put fresh, healthyfood on the tftble. but it's also given me a place to feel supported and heard. The workshops nd women's grL)Mp hfive brought me closer to my commtsnity, and I feel more coNfident manfiging my challenges at hotne, I doff 'tfeel so alone allymore." - Resident In partnership with the Royal Borough of Kensington and Chelsea (RBKC) and St Giles Trust, we co- funded the launch of a holistic community support hub at the Kensal Resource Centre in March 2024. At the ￿ntre of this initiative is a focmj pantry, but its impact extends beyond. Designed to address food povety while tackling wider issues, the hub offers wraparound support including financial inclusion advice, digitsl skills training, and educational services such as cooking classes. Duringthe period of ourfunding April 2024-December 2024: 9? 214 people reported improved food security people increased their dlgital literacy people strengthened social ties and felt more connected totheir community residents gained tools to make infomied financial decisions 26 Proud Providers of Procurement with Purpose Foundation Impact Report Strengthening financial resilience on the Lancaster West estate We're proud to support the Royal Borough of Kensington and Chelsea in building financial resilience among residents of the Lancaster West estste. Working with the Lancaster West Neighbourhood Team (LWNT), we ve co-funded an extended pilot to test a more integrated, holistic model of local housing support, which aims to SUPPOrt financial stability and greater well-being in the community. The pilot focuses on tackling debt, reducing rent arrears, easing financial pressure, and empowering residents with the tools to increase their independence and prevent homelessness. This year, the pilot has delivered strong results: AAA an ,4n an h￿SeholdsSupPOrted and benefiting from red￿ed rentaThears andlor lower debt residents report improved confidence in managing money residents haveseen boost in health andwellbeing residents haveenhanced theiremployability or progressed intowork, trainingi orvolunteering d Prrydders of PrKurunent Purp091 Foundation Impact Report L. 11 W1111 Money and wellbeing: A holistic approach to resilience Our partnership with Southern Housing continued this year, co-funding the Money and Wellbeing Project in London. The initiative is testing a joined-up model that combines money mentoring with health and wellbeing support, to strengthen the long-term financial resilience and overall wellbeing of social housing tenants. By addressing the root causes of financial instability, the project aims to prevent crisis, reducing the need for emergency hardship supwrt and helping individuals build independent futures. A dedicated Money Mentor and Wellbeing Coach is supporting residents in navigating financial stress and developing healthier coping strategies. This collaborative approach is showing strong potential for lasting, positive change for tenants. Key achievements this year include: 399 223 229 112 people supported through_ - sessions participantsstabilised or improved their finance5 participants reduced rentarrears participants improved health andwellbeing 28 Proud Providers of Procurement with Purpose Foundation Impact Report VCSE Sector Resilience Programme As part of our £lm Cost of Living Hardship Fund, the VCSE Sector Resilience Programme provided housing associations with tsilored support and funding for their non-profit partners. Funded by the Fusion21 Foundation, Clarion Futures, and Places for People, and delivered in collaboration with Almond Tree Strategic Consulting, the programme helped VCSE organisations tackle specific challenges, scale their impact, and strengthen long-term sustainability. Support included tailored one-to-one consultancy, coaching, grant opportLbnities, and access to a wider network. Highlights include: 24 397 69 daysof bwokeconsultancy delivered (focused oll busine55 planningl governan￿, and fvndraising} coregrantsawarded, totalling referred partners The Resilience Programme (TRP) in numbers IA 07Q partners referred forsupwt hours of support delI￿red loo% 97% of oryani5ations believed consultants made useful suggestions on how to address their needs of rxganisations believethey have been provided with pra¢tical tools and solutions to address their needs Strategic planningi governance and fundraising were the most common types of support delivered in TRP of organisaticwexpertgreatsr communityengagement because partlcipation In the programme 85% l/ It50 79 % of oryanisationsnow report gr&7terc0nfiden￿tDrnake changes to their business plan of ijryanisations report improved relationship5 withstakeholders of oryanisationsplan to implement the learning thev gained from their consultant 29 Proud Providers of Procurement with Purpose Community voices Proud Providers of Procurement with Purpose Foundation Impxt Rep)rt 'At IIV'SL Ketredr¢h, lit are ljnj￿d of our iolarnry ts fsMblish, dcvcloyl xrow a viljftiftt com*nu•itty re.￿art￿ Acttiity It￿F), kvndiffxfvn? kusion21 koMndati¢m tp48 crncinl to helii lis to stNrt the thT5 Area ivlzich ￿nPul￿rrerf TESirfeKts acr05S RtTr*iush4m to tAke Ae.ttwe ft>l¢ tpl tIMI aJJe.¢ls Ih*ir live> Aiid ¢ommMNitie6. ¢ommitmi.n¢ lo ittcl#s¥iitly.. we'7J¥ &t*tll I¢Ar*iinA ag It ts ollot¥t A¢tioA iNtpott.' Sophie Wilson, Dffector ol BVSC Research Empowering community researchers in Birmingham The Community Researcher training programme, co-created by Birmingham Voluntary Service Council (BVSC) and Birmingham Community Healthcare NHS, concluded in early 2025. It empowered local residents with research skills based on lived experience and community insight, and gained accreditation from AIM. Key achievements include: peoplecompleted a'Fundamentals of Research'training completed researth analysis training completed coursesaboutfocus groups and creative meth(*Jology Community ￿SearCherS have already produced reports for BCHC and public health projects for Birmingham City Council. This WO￿ supp)rts BVSC'S vision for the Community Hub for Engagement in Research practi￿ (CHERP), where communities lead research, influence policy and researchers are fairly compensated and receive continuous support. 31 Proud Providers of Procurement with Purpose Foundation Impact Report Resident-led tool to strengthen communities Launched in March 2025, the Quality of Life Foundation working with Sovereign Nehvork Groupi The Guinness Partnership, Notting Hill Genesis, Haringey Council, First Choice Homes Oldham, and Orbit Group, is developing a resident-led Neighbourhood and Community Tool, funded by Fusion21 Foundation, until January 2026. The initiative aims to empower residents to shape their neighbourhoods while helping housing associations and councils meet new consumer stsndards and make better informed, place-based decisions. Based on the Quality of Life Framework, the tool will facilitste resident input on priorities like safety and green space through local workshops, delivering actionable insights and tsilored recommendations. Tackling the rural housing crisis through research The Longleigh Foundation, in partnership with the University of Liverpool, launched a research project into the UK'S rural housing crisis, funded by Stonewater and Fusion21 Foundation. The study explores affordable housing solLrtions for rural communities, incorporating local input. The four-stage project analyses existing research and gathers new data from rural residents and housing professionals. Findings will guide future policy and will be available when the project concludes in early 2025. Exploring a national voice for tenants is report doesn't just rmake the ctssefor a nrttional Penant voice-itshows us how to build one th¢7t's trusted, representative, ond capable of driving real change." In July 2024, Longleigh Foundation co-commissioned a feasibility study on establishing a national Voice for Tenants, match funded by the Fusion21 Foundation and supported by The Gl5. Conducted by The Health Creation Alliance (THCA), the resulting report,'Tenants at the Table,. was published after the financial year. Aileen Edmunds, Chief Executive of the Longleigh Foundation This report prioritises social housing tenants in policy discussions, presenting 11 actionable recommendations for a national tenant advocacy structure. It emphasises the need for systems that listen to and actively involve tenants and outlines a strategy to enhance national influence while supporting local partnerships to improve accountability in the sector. 32 Proud Providers of Procurement with Purpose Partnering as a thought leader Ilifj Proud of Procurement vhth PuryKse Strengthening our partnership with HACT Our ongoing partnership with HA￿ supports the social housing sector's goals. This year, we sponsored HAcf's Centre of Excellence in Community Investment conference, showcasing the VCSE Sector Resilience Programme alongside Clarion and engaging with key stakeholders. Additionallyi we co-funded HAcf's Fuel Fund programme and supported two key initiatives: Social Housing Collaboration and Research & Development Programme.. A coalition driving innovation inthe sector, culminating in a Sertor Roadmap setfor launch in September2025. Anti-Poverty Series: Focused on the impart poverty has on social housing communities, this initiative aims to reconnect community investment with poverty alleviation and will run until March 2027. Collaborative action-research on Section 114 Response With our support, Birmingham Voluntsry Service Council (BVSC) Research, in partnership with the Institute for Community Research & Development (ICRD) at the University of Wolverhampton, worked closely with Birmingham City Council (BCC) to design a rapid, action-research project. This initiative aimed to enhance collaboration among the public, private, and voluntary sectors to address the long-term challenges posed by a Settion 114 notice. The project aimed to: Support BCC and its partners in co-designing a new way of working under time-sen51tive conditions. Use real-time empirical research to c￿ate a framework that can be shared with other local authorities facing similar challenges. The findings will contribute to the context of the City Council's new City Vision, Mission and Promises. 34 Proud Providers of Procurement with Purpose i/j 42 #J Social investment Proud Providers of Procurement with Purpose Foundation Impact Report Three years ago, the Commission on Social Investment founded by Lord Victor Adebowale and supported by Fusion21 Foundation, published a report highlighting challenges in the settor, such as the deprioritisation of social enterprises and persistent regional inequalities in access to finance. We are continuing to work with partners to create a Liverpool City Region social investment pathfinder fund to support the social enterprise sector. Wearealso exploring new investment opportunities aligned with our charitable objettives. In collaboration with our Board and Investment Committee, we aim to create a frarnework for balancing risk, impact, and financial return. This year, we supported s￿la1 Enterprise UK in reviewing progress on these recommendations. While there have been positive developments, To sUPPOrtourefforts, we will appoint a Social concerns remain regarding government strategy Investment Manager in 2025126 to overs and funding access. daily activities, manage due diligence, and ensure the achievement of social and financial performan￿ targets. We look forward to advancing our social investment initiatives in the coming year. Our £2 million investment in Social Investment Business's Recovery Loan Fund continues to create social impact and deliver financial returns, and additional initiatives like Flexible Finance and Cost of Living have further expanded their reach to underserved communities and regions. li ,a Proud Providers of Procurement with Purpose Looking ahead 2025 12026 oud Prowldern of PrO¢um￿nt wlth Pwp05e Foundation Impact Report Looking ahead to 2025126, we are excited aboutthe opportunities to enhan our impact and grow as a strategic funder. Building on our estsblished foundations, this year will focus on purposeful development and collaboration. We are dedicated to expanding our capacity for We are eager to see how HAcf's Anti-Poverty social investment opportunities, recognising series will shape our thinking and partnerships their potential for sustainable impact, and going forward. Additionally, we will collaborate we'll 3150 continue to scale our strategic grant with our VCSE Sertor Resilience Programme partnerships to support ambitious initiatives partners to develop a funding coalition for that drive meaningful change. future projects. Collaboration remains at the heart of our approach. We look forward to working closelywith otherfunders to share insights, align resources, and amplifyour impact. We especially hope to develop a strong pipeline of projects emerging from HACT'S Social housing research & development roadmap. As a foundation, we look forward to the future and remain committed to policy advocacy and supporting community voices, especially in challenging times. This upcoming year we aim to enhan our impact, whilst also keeping the needs of Fusion21 members'communitiesatthe forefront of our minds. In 2025, we will launch our partnership with Communities that Work through the Housing, Growth and Green Jobs Alliance. This initiative unites leaders in social housing, Net Zero homes, and employmentto support the sector in achieving its goals while fostering inclusive job pathways for communities. Proud Providers of Procurement with Purpose FUSICIN Unit 2 Puma Court, Kings Business Par Knowsley L34 IPJ 0 0845 308 2321 jnfo@fusion21.co.uk fuslon21.co.uklfoundatlon fusion21-Itd Fu5ion21 Foundation Registered in Eruland Charity Registration (No. 11648181 Company Registration (No. 079983391 Fusion21 Ltd Fusion21 Ltd, company number 05090266, is a company limited by guarantee (without share capital) whose sole member (and parent) is the Fusion21 Foundation. The organisation is the managing agent of the Fusion21 Members Consortium and focuses on providing procurement and social value services to 1166 members of this Fusion21 Consortium. It Is also a social enterprise specialising in efficient and impactful public sector procurement through a framework approach with social value Nnning through everything we do. At its core, the organisation's ethos is a shared desire to be an organisation for posltive change. The business is well established with a 22-year history, and Sin￿ its inception, has helped members to compliantly procure over £3.5bn, delivered over £424m in efficiency savings and created over £300m in social impact. In 2024-25 Fusion21 supported members to procure over £634m of works, generating £44m in procurement efficiency savings and over £IOOm in social impact. This included generating over 3,182 employment opportunities and creating training opportunities for over 2,000 people. The organisation continues to welcome new members from social housing, as well as members from education, health, and other areas of the public *rtor. Four frameworks were renewed during the period, worth a total over £1.3b in value and are a direct result of our inclusive approach to developing and updating our offer, these included, Building Improvement Works, Lifts, Material Supply & Associated Services & Workplace, Facilities Management for the benefit of our members. Fusion21 continues to be at the forefront in social value with significant impacts created through a number of avenues including, procurement, planning and reducing reoffending initiatives. We will continue to offer an extensive range of frameworks, with and on behalf of the Fusion21 Members Consortium, which are highly competitive, to support our members and suppliers. Exploration of potential new framework offerings is also an area always under close examination to ensure that we retain our high quality and well-regarded reputation in the sector. Our current plans for the financial year are centred around continued compliance and social impact which we are currently on target to achieve. We continue work with our five-year business plan, focusing on key areas of strategic importance to our membership including procurement and social value. Our focus will turn to our frameworks due for renewal this year, Construction Consultancy servi￿5, Ground Maintenance and Reattive Repairs & Empty Buildings. We will also continue to SUPPOrt our members with the implementation for Procurement Reform. 40 202+25 Trustee Report Financials The consolidated Statement of Financial Position shows total group income for the year was £13,486,110 (2024: £12,463,945). Total income relates predominantly to other trading activities which is generated mostly by the trading subsidiaryi Fusion 21 Limited, through its procurement support work. The charitsble activities of the foundation are funded solely from donations received from the trading subsidiary and in the year to 31 March 2025 a donation was paid to the foundation of £5,405,124 (2024: £3,350,000). Further donations were made in respect of the year ended 31 March 2025 totaling £5,343,033 with the amounts being paid post year end. After taking in account the total expenses of £8,172,126 (2024: £7,854,095), investment gains of £Nil (2024: £326,791) and other gain of £34,236 (2024.. £187,000 loss) the group recorded a net surplus for the year of £5,348,220 {2024: £4,749,641) and had total carried forward funds of £23,904,771 (2024.. £18,556,550). Of the total group funds carried fomard £9,152,873 (2024: £7,911,397) relate to reserves held within the trading subsidiary Fusion 21 Limited. The Trustees have chosen to retain such fvnds within Fusion 21 Limited to reflert the fart that a significant proportion of the group's financial liabilities are held within the company. Such reserves are therefore considered necessary to enable the subsidiary to m&t its debt obligations and to protert it against any potential future claim made against it. Funds have also been retained within the subsidiary to support the company's growth and Secu￿ a Sour￿ of considerable future funding through further annual donations. The Foundation has designated funds totsling £3,642,034 set aside to fulfil the charitable objectives of the Fusion 21 Foundation and includes £2m allocated for Social Investment supporting Social Enterprises and Charites struggling following Covid-19. Further detsils regarding the designated fund are set out in note 34. 41 202+25 Trustee Report Governance Public benefit The Trustees have referred to guidance published by the Charity Commission's general guidance on public benefit when reviewing the charity's objectives and activities, and in future planning. Particular attention has been paid as to how the planned activities will contribute to the objectives set. The Trustees have tsken a review of The Foundation's public benefit to satisfy that the Foundation's activities meet with Charities Commission requirements on 'public benefit,. The Foundation's public benefit principally derives from the social investment and support provided to the residents and communities of its I,OOO+ public sector members. The Foundation is fully funded by Fusion21 Ltd and projects are often co-funded by Fusion21 Members. The Foundation does not engage in fundraising attivities with its sole Source of revenue currently being Fusion21 Ltd. Objects The objects of the Foundation remain the same as the previous year and can be found below. Our funding priorities are health & wellbeingi employment & skills, and financial inclusion & resilience. We fund research to better understand issues andlor create opportunities for policy advocacy. We also fund delivery projects that are innovative, have a 'test and learn, approach and create new solutions to ongoing I￿ueS. An Update from Our Business Plan Say hello to Alex, our Social Value Apprentice! Supporting apprenticeships allow5 US to open doors for people who might not otherwise access high-quality career pathways. It's a practical way we deliver on our social purpose by creating meaningful employment opportunities and strengthening the communities we serve. We were thrilled to take on our latest apprentice, Alex in 2024-25. To celebrate National Apprenticeship Week, we shined a spotlight on our fantastic Social Value Apprentice Alexander Quirk, based within our Social Value team at Fusion21. Read on and get to know Alex in our quick Q&A: Why did you want to do an apprentI￿ship. "An apprenticeship was an attrattive option for me as I wanted to gain some experience in the workplace whilst also learning, and it's a bonus to get paidl I'm studying to achieve my Level 4 Corporate Rest)onsibility and Sustainability Apprenticeship over 20 months and learning lots of new skills along the way," 42 202+25 Trustee Report What have you found most enjoyable so far wort(ing at Fusion21? The Social Value team and wider business have been really welcoming and I've enjoyed having the contrast be￿een working in an office environment and getting out and about - visiting developers and contrartors on live construction sites. What has surprised you the most about your experien￿ as an apprentice to date? Having the opportunity to work with colleagues across different Fusion21 teams, taking me out of my comfort zone. I've also been lucky to complete some off-site work experience on a construction site which has been a highlight for mel What has been the biggest challenge you've faced in your role? Getting used to a new daily routine. Now I've adjusted my alarm clock I'm getting used to working full days Monday to Friday although - it's a different schedule to many of my friendsl Tell us something that people don't know al>out you. I'm an avid football fanl Everton is my team- Ive got a Season ticket and go to most of the games. 43 202+25 Trustee Report Charitable objects The charity's object5 are the advancement of citizenship and community development for the benef it of the public by the promotion of urban and rural regeneration in areas of social and economic deprivation by all or any of the following means.. lal the relief of f inancial hardship, Ibl the relief of unemployment, Icl the advancement of education, training or retraining, particularly among unemployed people and offenders, and providing unemployed people and offenders with experience, Idl the provision of financial assistance. technical assistance or business advice or consultancy in order to provide training and employment opportunities for unemployed people in cases of financial or other charitable need through help lil in setting up their own business, or lill to existing businesses, lel the creation of training and employment opportunities by the provision of workspace, buildings, and/or land for use on favourable terms. If) the improvement of housing in the public sector or in charitable ownership provided that such power shall not extend to relieving any local authorities or other bodies of a statutory duty to provide or improve housing, {gl the protection or conservation of the environment, Ihl the advancement of education in the use of information technology by the provision of facilities and resources in particular for those who by virtue of their age or social or economic circumstances would not have otherwise have access to information technology, {il the promotion of social inclusion by preventing people from becoming socially excluded, relieving the needs of those people who are socially excluded and assisting them to integrate into society Isocially excluded means being excluded from society, or parts of society, as a result of one of more of the following factors.. unemployment,. financial hardship,. youth or old age,. ill health (physical or mentall,. substance abuse or dependency including alcohol and drugs,. discrimination on the grounds of sex, race, disability, ethnic origin. religion, belief, creed, sexual orientation or gender re-assignment,. poor educational or skills attainment,. relationship and family breakdown,. poor housing Ithat is housing that does not meet basic habitable standards,. crime (either as a victim of crime or as an offender rehabilitating into 50cietyll, Ill such other means as may from time to time be determined subject to the prior written consent of the charity commissioners for England and wales 202+25 Trustee Report Future Plans and Objectives Looking ahead, we are committed to shaping a future defined by innovation, collaboration, and impact. Our ambition is to deepen relationships, forge stronger partnerships, and champion initiatives that create lasting value for communities across the UK. We will continue to lead on Strategic priorities that matter most to our members by driving progress in procurement, social value, and sustainability, while embracing opportunities that accelerate positive change. Through bold collaborations and forward-thinking investments, we aim to unlock new pathways for growth, resilience, and inclusion. As we step into the next chapter, our focus is clear.. to amplify our collective impart, empower communities, and ensure that every artion we take contributes to a fairer, greener, and more prosperous future. We extend our heartfelt thanks to our people for their dedication and positivity throughout this journey. Your commitment inspires us, and together we look forward to building an even brighter future. 45 202+25 Trustee Report FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES, REPORT {INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Auditor In 8ccordance with the company's articles, a resolution proposing that Mitchell Charlesworth (Audit) Limited be reappoint&d as auditor of the company will b& put at 3 General Meeting. Dls¢losure of Informatlon to audltor E3ch of the tru5tee5 has confirmed that there is no information of which they are aware which is relevant to the audit. but of which the auditor is un3ware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information. The trustees, report was approved by the Board of Trustees. Mr E Livesev Trustee Mr Christopher Murray Trustee 19112125 Date.. 46- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2025 The trustÉÉs, who are also thÈ directors of Fusion 21 Foundation for the purposÈ of company law, arÈ rÈsponsible for preparing the Trustees. Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standard5 (United Kin8dotn Generally Accepted Accounting Practice). Cornpany law require5 the trustees to prepare financial 5tatement5 for each financial year which give a true and fair view of the st8te of affairs of the charity 8nd of th& incoming resources and applic8tion of resources. including the income and expenditure, of the ch3ritable company for th3t year. In preparing these financial statements, the trustees are required to.. select Suitable accounting policies and then apply thern con515tently,' observe the method5 and principles in the Charities SORP,. make judgements and &stimat&s th8t 8re reasonable 8nd prudent,. state whether 3pplicable UK Accounting Standards have been followed, subject to any material dep3rtures disclosed ènd explained in the financial statements,. and prepare the financial statements on the Eoing concern basis unless it is inappropriate to presurne that the charity will continue in operation. The trustees are responsibl& for keeping adequate accounting records that disclos& with reason8ble accur8cy at any time the fin3nci31 position of the charity and enable them to ensure that the fin3ncial statements comply with the Companies Act 2(KJ6. They are also responsible for safeguarding the assets of the charity and hen¢e for taking reasonable steps for the prevention and detection of fraud and other irregularities. 47- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FUSION 21 FOUNDATION Opinion We have audited the financial statements of Fusion 21 Foundation (the 'charity'l and its svbsidiary Ithe 'Group I for the year ended 31 March 2025 which comprise the Consolidated Statement of Financial Activities, the Consolidated and parent charitable company Balance Sheets, the Consolidated Statement of Cash Flow5 and the notes to the account5, including a summary of Significant accounting policies. The financi31 reporting framework that has been applied in their preparation is applicable law and United Kingdorn Accounting Standard5, including Financial Reporting Standard 102 The Finunciol Reporting Stt7ndord opplicoble in the UK ond Republic of Irelund (United Kingdom Generally Accepted Accounting P￿CtIce1. In our opinion, the financial statements.. give a true and fair view of the state of the group and charitable company's afFairs as at 31 March 2025 and of the groups incoming resources and application of ￿SourCes, for the year then ended,. have been properly preparèd in accordance with United Kingdom Gene￿IlY Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Comp3nie5 Act 2006. Basls for oplnlon We conduct&d our audit in 3ccordance with International Standards on Auditing IUKI IISAS IUKII and applicable 13w. Our responsibilities under those standards are further described in the Auditor's responsibilities for the oudit of the finrjnciul stofemeftyts section of our report. We are independent of the group and charity in accordance with the ethical requirements that are relevant to our audit of the financial ststements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirement5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a ba515 for our opinion. Concluslons relatlng to golng Concern In auditing the financial staternents. we h8ve concluded that the trustees. use of the going concern basis of accounting in the preparation of the financial st3tements is appropriate. Based on the work we have performed, we have not identified any materlal uncertalnties relatlng to events or condltions that, individually or collectively, rnay cast Significant doubt on the charity'5 ability to continue as a going concern for a period Of at least twelve rnonth5 frorn when the financial staternents are authori5ed for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other information The other information comprises the information included in the annual report other than the financial statements and our auditor's ￿port thereon. The trustees are ￿spOnSible for the other information contained within the annual report. Our opinion on the financial 5taternents does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not expre55 any forrn of a55urance conclusion thereon. Our responsibility 15 to read the other inforrnation and, in doing so, consider whether the other inforrnation 15 materi311y incon515tent with the financi31 statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such rnaterial inconsistencies or apparent materi31 mis5t8tements. we are required to determine whether this gives rise to a material misststement in the financi31 statements th&mselv&s. If. based on th& work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2(M)6 In our opinion, based on the work undertaken in the course of our audit.. the Informatlon glven In the trustees. report for the financial year for whlch the flnanclal statements are prepared, which includes the director5, report prepared for the purposes of cornpany law, is consistent with the financial 5tatement5,' and the directors. report included within the trustees, report has been prepa￿d in accordance with applicable legal requirement5. 48- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF FUSION 21 FOUNDATION Matters on which we are required to report by exception In the light of the knowledEe and understanding of the group, the charity, the subsidiaries and their environment obtained in the course of the audit, we have not identified material misstatements in the directots. Report included within the Trustees. Report. We have nothing to report in respect of the following matters in relation to which the Companie5 Act 2006 require5 US to report to you if, in our opinion.. adequate accounting records have not been kept, or returns adequate ft>r our audit have not been received from branches not visited by u5,. or the financial statements are not in agreement with the accounting ￿e0rd$ and returns. or certain disclosures of trustees, remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit.. or the trustee5 were not entitled to prepare the financial statement5 in accordance with the small cornpanies regime and take adv3ntage of the Small companies, eKernptiOll5 in preparing the trustees, report and from the requirement to prepare a strategic report. Responslbilltles of trustees As explained more fully in the statement of trustees, responsibilities. the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the p￿paratIOn ol the financial statements and for being satisfied that they glve a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparatlon of financial Statements that are free from material mi5Staternent, whether due to fraud or error. In preparing the financi315tatements, the trustees are responsible for assessing the group's 3nd charity's ability to continue 3S a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unlèss the trustees either intend to liquidate the group or th& charitable company or to ce3se ope￿tions, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material mis5taternent, whether due to fraud or error. and to issue an auditor'5 report that includes our opinion. Reasonable assurance is a high level of a55urance but 15 not a guarantee that an audit conducted in accordance with ISAS IUKI will alway5 detect a material misst3tement when it exist5. Mis5tat&ments can arise from fraud or error 3nd are consider&d rn8terial if. individuallv or in th& aggregate, they could re3sonably be expected to influence the economic decisions of users t3ken on the basis of these financial statements. Extent to which the audit has considered capable of deterting irregularities, including fraud Irregulzritie5, including fraud, are instances of non-cornpliance with laws and regulation5. We design procedures in line with our responsibilities, outlined above, to detect rnaterial misstatements in respect of irregu13rities, including fr3ud. The extent to which our procedures are capable of detecting irregularities. including fraud, is detsiled below. 49- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF FUSION 21 FOUNDATION Our approach to identifying and a55e55ing the risks ol material misstaternent in respect of irregularities, including fraud and non-compliance with laws and regulation5, wa5 a5 follows.. the enEagement partner ensured that the engagement team collectively had the appropriate competence, c3pabilitie5 and skills to identify or recognise non-compliance with applicable laws and regulation5,' • we identified the law5 and regulations applicable to the company through disCU5510nS Wlth director5 and other rnanagement we focused on specific laws 8nd regulations which we considered may h8ve a direct m8terial effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment and health and safety legislation,. we assessed the extent of compliance with the laws and regulations identified above throuEh making enquiries of management and inspecting legal correspondence identified laws and regulation5 were communicated within the audit team regularly and the team rernained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an Unde￿tandIng of how fraud might occur, by.. making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, susperted and alleged fraud,. and considering the internal Controls in place to mitigate risks of fraud and non-complianee with laws and reEulations. To address tho risk of fraud through m3nagemÈnt bias and overrido of controls, we.. performed 8nalytlC81 procedures to identify any unusual or unexpected relationships,. tested journ31 entries to identify unusu31 transactions.. and assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias. In response to the risk of irregularities and non-compliance with laws and regulations. we designed procedure5 which included, but w&re not limited to-. agreeing financial statement di5c105ure5 to underlying supporting docurnentation,. enquiring of management as to actu31 and potential litigation and claims. There are inherent limitations in our audit procedures described above. The more removed th3t13ws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-cornpliance with laws and regulations to enquiry of the directors and other tnanagernent and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities is available on the Financial Reporting Council's website at.. http5'.11 www.frc.org.uk/auditorsresponsibilities. This description form5 part of our auditor's report. Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken $0 that we might state to the charitable Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or a55urne responsibility to anyone other than the charitable cotnpany and the charitable cornpany's mernbers as a body, for our audit work. for this report, orfor the opinion5 we have formed. 50- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF FUSION 21 FOUNDATION Mr Tony Stanley ACA (Senior Statutory Auditor) For and on behalf of Mitchell Charle5WOrth (Audit) Limited. Statutory Auditor Accountants Suites C,D,E, & F 14th FloorThe Plaz8 100 Old Hall Street Liverpool L3 9(y Date.. 22 December 2025 51 FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING THE CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025 Unrestricted Unrestricted fund5 fund5 2025 2024 Noies Income from: Donations and legacies Other trading activities Investments 5,320 12,897,975 582,815 4,791 12,194,098 265,056 Totsl income 13,486,110 12.463,945 Ex endlture on- Raising funds 6,844.340 6,310,933 Charitable activities 1,308,293 1,510,114 Other 14 19,493 33,048 Total expendliu 8,172,126 7,854,095 Net gain5111055es1 on investments 13 326,791 Net income 5,313,984 4.936,641 Other recognlsed galns and I0￿e$ ActU3rial g3in/llossl on defined benefit pension schemes 34.236 1187,0(J)I Net movement in funds 5,348,220 4,749,641 Fund ba13nces at l April 2024 18,556.551 13.806,909 Fund balances ai 31 March 2025 23,904,771 18,556,550 Net movement in funds for the financial year is attributable to.. Parent ch3rity Non controlling interest 5,384.848 136,6281 4.984,946 1235,3051 5,348,220 4,749,641 52- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING THE CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025 The statement of financial activities includes all gains and105se5 recognised in the year. The statement of financi21 activities includes all gains and losses recognised in the year. All income 2nd expenditure derive from continuing attivities. The statement ol financial activities also complie5 Wlth the requirement5 for an incorne and expenditure account under the Cornpanies Act 2006. The movement in funds detailed above compiles withthe requirement for a statement of chanEes in equity under FR5102. 53- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE CONSOLIDATED BALANCE SHEET AS AT31 MARCH 2025 2025 2024 Notes Fixed assets Intangible assets TanEible assets Investment properties Investments 15 97,976 1,038,999 1.455.000 13,665.195 129,998 1,055,671 1,455,000 8.790,214 17 18 20 16,257,170 11,430,883 Current a55et5 Debtor5 Cash at bank and in hand 25 4,467,963 5,117,581 4,076,840 4,835,457 9,585,544 8,912,297 Credltors- amounts fallln8 due wlthln one year 26 11.745,1361 11,512,617> Net current assets 7,840,408 7,399,680 Totsl ass￿$ less current liabilities 24.097,578 18,830,563 Creditors: amounts falling due after more than gne year 27 18,0901 115,0(KJl Provision5 for liabilities 30 1184.7171 1259,0131 Net assets 23,904,771 18,556,550 Income funds Unrestricted funds Designated funds General unrestricted fund5 34 3,642,034 20,935,519 3.642,034 15,550,670 Funds 3ttributable to parent charitv Non controlling interest 24.577,553 1672,7821 19,192,704 1636,1541 23,904,771 18,556,550 The financial statements were approved by the Trustees on 20112125 Mr E Live5ev Trustee Mr Christopher Murray Trustee Compary Registration No. 07998339 FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE CHARITY BALANCE SHEET AS AT31 MARCH 2025 2025 2024 Notes Fixed assets Intangible assets Investment properties Investments 16 19 20 4,115 480,000 13.665.195 7,407 480,0(H) 8,790,214 14,149,310 9,277,621 Current assets Debtor5 Cash at bank and in hand 25 10,260 310,709 1,833 636,899 320,969 638,732 Creditors: amounts falling due within one year 26 113,9711 19,1681 Net current assets 306,998 629,564 Totsl 355ets le55 current liabilities 14,456.308 9.907,185 Income funds Unrestricted fund5 Designated funds General unrestricted funds 34 3,642,034 10,814,274 3,642,034 6,265,151 14,456.308 9.907,185 14,456,308 9,907,185 As permitted by $408 Companie5 Act 2006, the charitable ccotnpany ha5 not presented its own 5tatetnent of financial activity and related notes. The charitable company'5 net income for the year wa5 £4.549,12312024.. £2,128,599). The financial statements were approved by the Trustees on 20112125 Cktii M¢trkA Mr E Livesev Trustee Mr Christopher Murr8y Trustee Company Registration No. 07998339 55- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 Notes Cash fltsws from operating attivities Cash generated from operations Interest paid Income taxes refunded / IPaidl 37 4,660,34S 13,6001 103,362 3,888,979 115,6941 4,760,107 3.873,285 Investin£ a￿1vItIeS Purchase of intangible assets Purchase of tangible fixed 8ssets Purchase of investrnents Repayment of fixed asset loans Investment income received 161,7351 1117.1721 14,874,981) 186,3911 1254,4471 16.754,8991 35,531 265,055 582,815 Net cash used in investing activities 14,471,073) 16,795.1511 Financing a¢tivilies Repayment of bank loans 16,9101 1213,4301 Net cash used In Ilnanclng attlvltles 16,9101 1213,4301 Net incre35elldecreasel in cash and cash equivalents 282,124 13.135,2961 Cash and cash equivalents at beEinning of year 4,835,457 7,970,753 Cash and cash equivalents at end of year 5,117,581 4,835,457 56- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Actounting polities Charity information Fusion 21 Foundation 15 a private company limited by guarantee incorporated in England and Wale5. The registered office for the charity and its subsidiaries is Unit 2, Puma Court, Kings Business P8rk, Knowsley, Merseyside, L34 IPJ. 1.1 Ac¢ountln8 conventlon The financi31 statements h3ve been prepared in accordance with the charity's rnemorandum and articles of 3Ssociation, the Comp8nies Act 2006 and "Accounting and Reporting by Ch8rities.. Ststement of Recommended Practice applicable to charities preparing their accounts in accordance with th& Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffective l January 20191" The charity is a Public Benefit Entity as defined by FRS 102. 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 financial statements have been prepa￿d under the historical cost convention. The principal accounting policies adopted are Set out below. 1.2 Basi5 of consolidation In tho paront company financial statements, tho cost of a business combination is the fair value at the acquisition date of the assets given, equity Instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business ctsrnbinatitsn. The excess of the cost of a business cornbination over the fair value of the identifiable assets, liabilitie5 and contingent lizbilitie5 acquired is recogni5ed a5 goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration 3fter the acquisition date. Provisional fair values recognised for business combinations in pr&vious periods are 3djusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment. The con501idated financial 5taternents incorporate the results of Fu5ion21 Foundation (the parent charity) and its 5ub5idiarie5.' Fu5ion21 Lirnited, Fu5ion21 A55et Management Limited, Fu5ion21 Trading Limited, and CoreHau5 Ltd. Subsidiary results are included on a line-by-line basls, With all intra-group transactions and balances eliminated on consolid8tion. In accordance with sertion 408 of the Companies Att 2006 and the Charities SORP, no separnte Statement of Financial Activities or income and expenditure account has been presented lor the parent charity. This exemption is applied as the consolidated financial statement5 provide a true and fair view of the group's financial position and perforrnance. 1.3 Golng concern At the time of approving the financial staternents, the trustees have a reasonable expectation that the charity ha5 adequate resources to continue in operational eKi5tence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial staternents. 1.4 Charitable funds Unrestricted fund5 are available for use at the discretion of the trustees in furtherance of their charitable objective5. 1.5 In¢omlng resources Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts c3n be measured reliably, 3nd it is probable that income will be received. 57- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies Icontinuedl Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless perforrnance conditions require deferral of the amount. Incorne tax recoverable in relation to donations received under Gift Aid or deed5 of covenant is recogni5ed at the tirne of the donation. Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the arnount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. In respect of long term contracts and contracts for ongoing service5. incorne represents the value of work done in that year, including estimates of amounts not invoiced. Income in respect of long terrn contracts 8nd contracts for ongoing services is recognis&d by rèference to the st3g& of completion. Grants receivable a￿ credited to the Statement of Financial Activities in the year in which they are received. 1.6 Expenditure Expenditure is included within the Staternent of Financial Activities on an accruals basis and 15 recognised when there is a legal or constructive obligation to make payments to third p3rties. it Is probable that the 5ettlernent will be required and the amount of th& obligation can be me8sur&d reliably. Expenditure is categorised under the following headinzs.. Costs of raising funds including manaEement fees Expenditu￿ in charitable activities includin6 cost of providing financial support to those in need. Other expenditure represents these itern5 not falling into the categorie5 above. Grants payable to third p8rties are within the charities charitable objectives. Where unconditional grants are offered, they are accrued 3s soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation th3t the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only a¢¢rued when any unfulfilled conditions are outside of the control of the charity. Charitable activity costs include expenditure which is directly attributable to specific activities and has been included within these cost C3tegories. Certain other costs which are attributable to more than on& activity are apportioned across cost C3tegories on the basis of an estimat& of the proportion of time spent by staff on those activities. Governance costs are costs incurred in connection with the strategic management of the charity and in compliance with constitutional and Statutory requirernents. Irrecoverable VAT is charged as an expense against the 8Ctivity for which the expenditure ar05e. 1.7 Research and development expenditure R&se8rch expenditure is writt&n off against profits in the year in which it is incurred. Identifiable development expenditure is c3Pltalised to the extent that the technic31, commercial and financial fe3sibility can be demonstrated. 1.8 Intangible fixed assets other than goodwill Intangible assets acquired separately from a business are recognised at cost and are subseouently measured at ¢osr less accumulated amortisation and accumulated impairment losses. 58- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies Icontinuedl Amortisation is recognised $0 as to write off the cost or valuation of assets less their residual values over their useful lives on the following ba5e5'. SoftW3re Development costs 3 years straight line 5 years straight line 1.9 Tangible fixed assets Tangible fixed asset5 are initially rneasured at C05t and subsequently measured at cost or valuation, net of depreciation and any irnpairment1055e5. Depreciation is recognised 50 a5 to write off the cost or valuation of assets le55 their residual value5 over their useful live5 on the following base5'. Leasehold property Leasehold improvement5 Office improvements Fixtures and fittings Equipment Not depreci3ted 3 years Straight line 3 years straight line 3 years straight line 3 years straight line The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities. i.io Investment properties Investment property, which is property held to earn rentals andlor for capit81 appreciation, is initially r&cognised at cost, which includ&s the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair lue at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss. 1.11 Fixed asset investments In the p8r&nt company financial ststements interests in subsidiaries, associates 8nd joint ventures are initially measured at cost and subsequently measured at cost less any 3ccumu13ted impairment losses. The investments are assessed for impairment at each reportin£ date and any impairment losses or reversals of impairment losses are recognised immediately in net incomelleypenditurel for the year. An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company ha5 significant influence. The company considers that it ha5 significant influence where it has the power to participate in the financial and operating decisions tsf the associate. Entities in which the cornpany has a long term interest and 5hare5 control under a contractual arrangement are classified as jointly controlled entities. The group has issued 103ns with fixed or determinable payments that 3re not quoted in an 3Ctive market. These loans are recorded at transaction price. 1.12 Impairment of fixed assets At each reporting end dat&, the group reviews th& carrying amounts of its tangible 8nd intangible 8ssets to determine whether ther& is any indication that those assets have suffered 3n impairment loss. If any such indic3tion exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss lif anvl. 59- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies Icontinuedl 1.13 Cash and cash equlvalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original m3turities of thre& months or less. 1.14 Flnanclal Instruments The charity has elected to apply the provision5 of Section 11 'Basic Financial Instruments, and Section 12 '0ther Financial Instruments Issues, of FRS 102 to all of its fin8ncial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilitie5 are offset, with the net amounts presented in the financial ststernents, when there is a legally enforceable right to Set off the recognised zmount5 and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. BasicfinonciGI os5ets Basic financi81 assets. which include debtors and cash and bank ba13nces, are initially m&asured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not arnortised. aossificution ofAintsnciol liubilities Financial liabilities and equity instruments are classified according to the Substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after Basicfinonciul liobilities Basic financial liabilities, including creditors and bank loans are initially recognised at tr3ns3Ction price unless the arrangement constitutes a financing transattion, where the debt instrument is measured at the present value of the future payrnents discounted at a market rate of interest. Financial liabilities classified as payable within one year a￿ not arnortised. Debt instruments are subsequently carried at amort15ed cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of ope￿tionS from suppliers. Amounts payable are classified as cur￿nt liabilities if payment is due within one year or less. If not, they are p￿sented as non-current liabilities. Trade ¢￿dItorS are recognised initially at transaction price and subseouently measured at amortised cost using the effective interest method. Derecognltlon ofAlnonclol Il¢Ybllltles Financial liabilitie5 are derecognised when the charity's contractual obligations expire or are discharged or cancelled. 60- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies Icontinuedl 1.15 Taxatlon The charity benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation t3x on income or gains falling within those exemptions. The tay expense represents the sum of the tax currently payable and deferred tax in respect of the subsidiary companv. Current tax The tax currently payable 15 based on taxable profit for the year. Taxable profit differs from net profit zs reported in the profit and Ios5 account because it excludes iterns of income or expense that are taKable or deductible in other years and it further excludes item5 that are never taxable or deductible. The company's liability for current tax is calculated using t3X ￿t@S that have been &nact&d or substantively enacted by the reporting end date. Deferred tax Deferred tax liabilitie5 are gene￿IlY recognised for all timing differences and deferred tax a55ets are iecogni5ed to the eKtent that it 15 probable that they will be recovered against the reversal of deferred tax liabilitie5 or other future t3xable profits. Such 85set5 and liabilities are not recognised if the timing difference arise5 from goodwill or from the initial recognition of oth&r assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability IS settled or the asset 15 reali5ed. Deferred tax is charged or credited in the profit and Ios5 account, except when it relate5 to items charged or credited directly to equity. in which case the deferred t8X 15 also dealt with in equity. Deferred t3x assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets 8nd liabilities 8nd the deferred tax assets and liabilities relate to taxes levied by the same tax authoritv. 1.16 Employee benefits The cost5 of any 5hort-term employee benefits are recognised as a li3t>ility and an expense. The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are reco£nised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. 1.17 Retirement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. The cost of providing ben&fits under defined benefit plans is determined sep8rately for e8ch plan using the proj&cted unit crèdit method, 3nd is based on actuari31 advice. The chanEe in the net defined benefit liability arising from employee service during the year is recoEnised as an employee cost. The c05t of plan introduction5, benefit change5, settlements and curtailrnents are recognised as incurred. 61 FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies Icontinuedl The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in incomelleKpenditurel for the year. Remea5urement changes comprise actuarial gains and105se5, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other recognised gains and losses in the period in which they occur and are not reclassified to income/lexpenditurel in subsequent periods. The net defined benefit pension asset or liability in the ba13nce sheet comprises the tot31 for e3ch plan of the present value of the defined benefit obligation lusing a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obliEations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the arnount that may be recovered either through reduced contribution5 Qr agreed refund5 from the scheme. 1.18 Leases Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the terrn of the relevant lease. The group financial statements tonstslidate the results tsf Fusion21 Foundation (the charity) and its subsidiaries, Fusion 21 Litnited, Fusion 21 Asset Management Litnited Fusion 21 Trading Limited and CoreHaus Ltd. The result5 of the charity's subsidiaries have been incorporated on a line by line ba515. No separate SOFA or income and expenditure accounts has been presented for the charity 81one as permitted by the exemption afforded by section 408 of the Companies Act 2006 and the SORP. Crltlcal accountlng estlmates and luilgements In the application of the charity's accounting policies, the tru5tee5 are required to make judgernents. e5timate5 3nd assumptions about th& carrying amount of assets and liabilities that are not readily app8rent from other sources. The estimat&s and 3ssociated assumptions 3r& based on historical experience and other factors th3t are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estirnate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Key sources of estlmatlon uncertalnty A¢trued income The accrued income is calculated at the year end based on relevant % of the individual contract values less any amounts invoiced to date. In calculating the accrued income reliance is placed on the accuracy of the estimated contract values. Useful economic lives of tsngible assets The annual depreciation charge lor tangible fixed assets 15 5ensltive to changes in the estirnated useful economic lives and residual values of the assets. The useful economic live5 and residual value5 are a5se5sed on initial acqui51tion and reassessed periodic811y to ensure they rernain appropriate. They are amended when necessary to reflect current estimates based on technoloBic31 advancement, future investments. economic utilis3tion 3nd the physical condition of the assets. The useful economic lives for each class of asset are set out in the relevant accounting policy note. 62- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Intome from donations and legacies Unrestricted funds 2025 Unrestricted funds 2024 Grants 5,320 4,791 Intome from other iradlnE actlvltles Unrestricted funds 2025 Unrestricted fund5 2024 Non-charitable trading activities 12,897,975 12,194,098 Income from Investments Unrestricted funds 202S Unrestricted funds 2024 Rental income Interest receivable 57,927 524,888 56,765 208,291 582,815 265,056 63- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Raising funds Unrestricted Unrestricted funds funds 2025 2024 Tradin Other trading activities Staff costs C05tS 2,449,836 4.139,822 224,310 30,372 1,937,675 4.221,847 129,473 21,938 Depreciation and amort15ation Share of support and governance costs (see note 101 Trading costs 6.844,340 6.310,933 6,844,340 6,310,933 Charitsble activities Unrestricted Unrestricted funds funds 2025 2024 Staff costs Depreciation and impairrnent 87,246 3,292 84,621 2,469 90,538 87,090 Grant funding of activitie5 Isee note 81 1.149.116 1,376.671 Share of support costs (see noto 101 Share of governance costs (see note 101 51,045 17,594 11,722 34,631 1,308,293 1,510,114 FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Grants payable Unrestrlrted Unrestricted funds funds 2025 2024 Mainstream grunts programme.. Association of Charitable Organisations Birmingham Voluntary Service Council The Boiler House Community Space Child Poverty Action Group Citi￿rn First Incubator CIC C13rion Futures- Hometruths House Curo Places Ltd Fareshare Midlands 2,000 16,175 11,250 1,000 65,120 50,000 4,0(X) 4,000 20,000 14,558 33,000 28,000 455,000 28,121 ForHousing Fresh Visions 20,0(KJ 325,000 8,750 30,0(K) 15,218 33,782 60,174 53,8(M) 3,0(M) 7,200 19,654 32,896 7,5(M) 15,000 7,000 io,otK) 29,276 28,000 Housing Associations, Charitsble Trust IHACTI LonEleieh Foundation N2tion81 Energy Nation31 Youth Service New Horizon Youth Peabody Community Foundation Pow&r to change Prima Housing Group Quality of Life Foundatitsn Royal 8orouEh of Kensingron and Chelsea Social Enterprise UK Southern Housing Group Sovereign Housing A550ciatio Tomorrow's WomÈn Wirral 8,050 12,000 16,975 30,000 22,982 7,500 8,000 10,000 27,361 Torus Found8tion Transform Live5 Companv 853,491 727,851 Cost of Living Hardship Fund.. Clarion Futures- VSCE Sector Resilience Programme The Housing Association 295,625 503,820 200,000 295,625 703,820 Total grants distributed 1,149,116 1,431,671 65- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Grants payable Icontinuedl Sociol Investment Fund.. Power to Change 5,000 5.000 Grants returned.. Taroe Trust Limited 160,0001 160,0001 Total grants to institutions 1,149,116 1,376,671 Net movement in funds 2025 2024 The net movement in funds is stated after chargingllcreditingl: Fee5 P3yable to the charity'5 auditor.. for the audit of the charity'5 financial statements for other financial services Depreci3tion of owned tangible fix&d assets Amortisation of intangible as5et5 5,2LKI 4,8(K) 133,845 93,757 4,725 15,306 73,160 59,188 66- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 io Support tosts Support costs Governance costs 2025 Support costs Governance tosts 2024 Spon50rship5 Travel and subsistence Computer & software costs Bank charges Subscriptions 36,000 8,328 1,162 53 36,000 8,328 1,162 53 3,000 7,974 628 3,000 7,974 628 85 85 5,502 5,502 35 35 Audit fee of the group Accountancy Legal and professional 26,822 13,549 7.595 26,822 13,549 7,595 15,225 15,306 26,038 15,225 15,306 26,038 51,045 47,966 99,011 11.722 56,569 68,291 Analysed between Trading Charitable activities 30,372 17,594 30,372 68,639 21,938 34,631 21,938 46,353 51,045 11,722 51,045 47,966 99,011 11,722 56,569 68,291 Support and governance costs a550ciated with the parent charity have been allocated to charitable activitie5. Costs associated with the 5ubsidiarie5 have been allocate to trading activitie5. li Trustees None of the trustees lor any persons connerted with them) received any rem￿ne￿tIOn or benefits from the ch3rity durinE the year12024- no remuneration paid to trustees). 12 Employees The average rnonthly nurnber of ernployee5 during the year was.. 2025 Number 2024 Number Management Client facing, adminstration and support li io 62 Total 71 72 67- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 12 Employees Icontinuedl Employment costs 2015 2024 Wages and salaries Social security costs Other pension costs 3,579,647 438,526 208,895 3,792.117 408,734 105,617 4.227,068 4,306,468 The number of employees whose annual remuneration was more than £60,000 15 as follows.. 2025 2024 Number Number £60,000- £70,000 £70,001- £80,000 £80,001- £90,000 £90,001- £100,000 £110,001- £120,000 £120,001- £130,000 £140,001- £150,000 £150,001- £160,000 E160,001- £170,000 £190,001- £200,000 13 Galns and losses on Invesimenis Unrestricted funds 202S Unrestricted fund5 2024 Gains/llos5esl arising on.. Rev31uation of investment properties 326,791 14 Other Unrestricted Unrestricted funds funds 2025 2024 Taxation 19,493 33,048 19,493 33,048 68- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 14 Other Icontinuedl 15 Intsngible fixed assets Group Goodwill Software De¥elopment Totsi Cost At l April 2024 Additions 951,389 136,796 61,735 187,122 1,275,307 61,735 At 31 March 2025 951.389 198.531 187,122 1,337,042 Amortlsatlon and Impalrment At l April 2024 Amortisation charged for the year 951,389 53,578 46.977 140,342 46,780 1,145,309 93,757 At 31 March 2025 951,389 100,555 187,122 1,239,066 Carrying amount At 31 March 2025 97,976 97,976 At 31 March 2024 83,218 46,780 129,998 16 Intan8lble fixed assets Charlty Software Cost At l April 2024 and 31 March 2025 9,876 Amortisation and impairrnent At l April 2024 Amortisation ch3rBed for the year 2,469 3,292 At 31 March 2025 5,761 Carrying amount At 31 March 2025 4,115 At 31 March 2024 7,407 69- Ln O LfTr Di m¢ Ln co LUZ FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Investment property Group 2025 Fair value At l April 2024 and 31 March 2025 1,455,000 Investment property cornprises £1,455.000. The fair value of the investment property has been arrived at on the b8SIS of a valuation carried out in M3y 2024 by Urban Base, a lettings company, who are not connected with the charity. The valuation was made on an open market V31ue basis by reference to market evidence of t￿nsaCtIOn prices for simi13r properties. The directors have consider this to remain the fair value of the inve5ttnent property a5 at 31 March 2025. 19 Investment property Charlty 2025 Fair value At l April 2024 and 31 March 2025 480,000 Investment property comprises £480,(M)O. The fair value of the investment property has been arrived 3t on the b3sis of a valuation carried out in May 2024 by Urban Base, a lettings company, who are not connected with the charity- The luation was made on an open market value basis by reference to market evidence of transaction prices for similar propertie5. The propertie5 held by Fusion 21 Foundation have a150 been reclassified to be treated a5 property inve5tment5 to show thi5 rnore clearly. 71 FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 20 Fixed asset irwestments Group Unlisted Investments CO￿ or waluation At l April 2024 Additions 8,790,214 4,874,981 At 31 March 2025 13,665,195 Carrying amount At 31 March 2025 13.665,195 At 31 March 2024 8,790,214 21 Fixed asset investments Charity Unlisted inve5tment5 Cost or valuatlon At l April 2024 AdditlOn5 8,790,214 4,874,981 At 31 March 2025 13,665,195 Carrying amount At 31 March 2025 13,665,195 At 31 March 2024 8.790,214 72- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 22 Subsidiaries IGroup and Charity) Detai15 of the charity's subsidiaries at 31 March 2025 are as follows.. Name of undertaking Registered office Nature of business Class of shares held % Held Direct Indirect Fusion 21 LimitÈd England & Wales Public sector member support Limited by guarantee Fusion 21 Asset Man3g&ment EnB13nd & Wales Development of building projects Ordinary Ltd Fusion 21 Tr3ding Ltd CoreHau5 Ltd loo.00 loo.00 England & Wales Dormant England & Wales Offsite construction Ordinary Ordinary loo.00 75.70 Name of undertaking ProfitllLossl Capital and Reserves Fusion 21 Limited Fusion 21 Asset Man3g&ment Ltd Fusion 21 Tr8ding Ltd CoreHau5 Ltd 6,646,600 9,152,873 22,286 676,228 1150,7311 21,465 The charity is the sole member of Fusion 21 Limited Icornpany number.. 050902661. a company limited by guarantee which provides support to public sector members and other training services. Fusion 21 Limited owns l(Kl% of the ordinary share capital of Fusion 21 Asset Management Limited Icompany number.. 111940611, a building development company. Fusion 21 Lirnited owns 100% of the Share capital of Fusion 21 Trading Limited Icornpany nurnber.. 078796111, dormant company. Fusion 21 Limited owns 75.7% of the ordinary share c3Pltal in CoreH3us Ltd Icompany number.. 092870211, a comp3nv which specialises in offsite construction. All of the above companies have been included in the con501idated accounts. Fusion 21 Asset Managernent Ltd wa5 entitled to exemption frorn audit under section 479A of the Companie5 Act 2006 relating to subsidiary cornpanies. 73- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 23 Financial instruments Igroupl 2025 2024 Carrying amount of financial assets Debt instrutnents measured at amortised cost Equity instruments measured at cost less impairment 9,097,735 13,665,195 8,473,394 8,790,214 Carrying amount of financial liabilitie5 Measured at arnorti5ed c05t 852,357 781,559 24 Financial in5trumerrt5 Icharityl Z025 2024 Carrying amount of financial assets Debt instrument5 measured at amortised c05t Equity Instruments measured at cost less impairment 310,7 13,665,195 636,899 8,790,214 Carrying amount of financial liabilities Measured at arnorti5ed c05t 9,840 8,280 25 Debtors Group 2025 Group 2024 Charity 2025 Charity 2024 Amounts falllng due wlthln one year- Trade debtors Corporation tax recoverable Other debtors Prepayments and accrued income 2,592,936 18,450 20,933 1,835,644 1,706.327 121,812 13,434 2,235.267 10,261 1,833 26 Credltors- amounts falllng due wlthln one year Group 2025 Group 2024 Charity 2025 Charity 2024 Notes Bank loanslsecuredl Other taxation and social 5ecuritv Deferred income Tr3d& credito Other creditors Accruals 28 10,DOO 814,130 86,739 246.797 9,940 577,530 io,(KJo 647,708 98,350 290,950 16,597 449,012 29 78 4,053 888 9,840 8,280 1,745.136 1.512,617 13,971 9,168 -74- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 27 Creditors- amounts frdlling due after more than one year Group 2025 Group 2024 Charlty 2025 Charlty 2024 Bank loans Isecuredl 28 8,090 15,000 8,090 15,000 Loans and overdrafts Group 2025 2024 Bank loans 18,090 25,000 Payable within one year Payable after one year 10,000 8,090 10,000 Is,000 29 Deferred income 2025 2024 Other deferred income 86,739 98,350 Deferred income is included in the financial staternents as follow5.. 2025 2024 Deferred income is included within.. 86,739 98,350 Movernents in the year.. Deferred income at l April 2024 R&leased from previous periods 98,350 111,6111 136,775 138,4251 Deferred income at 31 March 2025 86,739 98,350 75- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Pro¥isions for liabilities Group 2025 2024 Notes 31 62,923 121,794 66,263 192,750 Retiretnent benefit obligations 32 184,717 259,013 Charlty There are no provisions for liabilities within the charity accounts. 31 Deferred taxation (Group) Deferred tax assets and liabilities are offset where the charity h8s a legally enforceable right to do so. The following is the an31ysis of the deferred tax balances (after offset) for financial reporting purposes.. Group 2025 20Z4 Balances: Accelerated capital allowance5 62,923 66,263 Charity 2025 2024 Balances: Aeeelerated capital allowances RÈtiremÈnt benefit oblizations Group 2025 Group 2024 Movements in the year.. Liability at l April 2024 Charge to othor expenditure 66,263 13,3401 5,654 60,609 Liability at 31 March 2025 62,923 66,263 76- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 31 Deferred tsxation (Groupl Icontinuedl The deferred tax liability set out above is expected to reverse within 36 months and relates to accelerated capital allowances that are expected to tnature within the same period. A deferred tax asset ha5 been recognised for the current year in respect of the scheme and this has been offset 3gain5t the net defined benefit pension scheme liability, as shown in note 32. 32 Ret[￿meTht benellt schemes Defined contribution schemes The charity'5 trading subsidiary, Fusion 21 Limited. operate5 a defined contribution pension scheme for all qualifying employee5. The as5et5 of the scheme are held Separately frorn those of the charity in an independently adrninistered fund. Deflned benefit Khemes The trading subsidiary contributes to the Social Housing Pension Scheme ISHPSI which is a multiemployer defined benefit pension scheme with approximatel¥ 150 sponsorin£ employers. The scheme is administered by TPT Retirement Solutions (formerly The Pensions Trustl ITPT'I. Under the scheme the employees are entitled to retirement benefits based on a percentage of their final salary ofi attainment of a retirernent age . No other post retirement benefit5 are provided. The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were provided by TPT Retirement Solutions for the period endèd 31 March 2025. The present ￿lue of the defined benefit obliEation, the related current service cost and past service cost were measured using the projected unit credit method. Key ossumptions 2025 2024 Discount rate Expected rate of salary increases 5.96 4.93 3.80 3.80 3.04 2.80 3.08 2.80 Mortality ossumptions The assumed life expectations on retirement at age 65 are.. 2025 2024 Years Years Rètiring tod3y Males Females 20.50 20.50 23.00 23.00 R&tiring in 20 years Males Females 21.70 21.80 24.50 24.40 77- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 32 Retirement benefit schemes Icontinuedl Amounts recognised in the profit and loss account.. 2025 2024 Net intsrest on defined benefit liability/lassetl Other costs and income 11,000 3,000 7,000 3,000 Totsl costs 14,000 10,000 Amount5 t3ken to other comprehensive income.. 2025 2024 Actual return on scheme asset5 Less.. calculated interest elernent 141,0001 57,000 132,000 58,000 Return on scheme 3ssets excluding interest income Actuarial changes related to obligations 16,000 147,0001 190,000 13,0001 Total costs/lin¢omel 131,0001 187,000 The amount5 included in the balance Sheet arising from the charity's obligations in respect of defined benefit plan5 are as follow5.. 20Z5 2024 Present value of defined benefit obligations Fair value of plan assets 1,383,000 11,219,788) 1,384,000 11,127,000) Deficit in scheme 163,212 257,000 Deferred taxation balance relatin8 to pension schemes 141,4181 164,2501 Total liability recognised 121,794 192,750 78- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 32 Retirement benefit schemes Icontinuedl Movements in the present value of defined benefit obligations. 2025 Liabilities at l April 2024 Benefits paid Actuarial gains and losses Interest C05t Other 1,384,000 125,0001 147,0001 68,000 3,000 At 31 March 2025 1,383,000 The defined benefit obli83tions arise from plans which 3re wholly or p3rt1y funded. Movernents in the fair value tsf plan a55ets'. 2025 Fair value of assets at l April 2024 Interest income Return on p13n assets lexcluding amounts included in net interest) Benefit5 paid Contribution5 by the ernployer 1,127,000 57,000 116,0001 125,0001 76,788 At 31 March 2025 1,219,788 The actual return on plan assets was £41,OC()12024- £132,0(K)I. The fair value of plan assets at the reporting period end wa5 a5 follows.. 2025 2024 Equity in5trurnents Debt instruments Property Liability driven inve5tment5 Absolute return Alternative risk permia Secured income Other categorie5 137,000 238,000 210,000 369,000 112,000 146,000 54,000 458,000 44,000 36,000 34,000 243,000 20,000 245,788 1,219,788 1,127,000 79- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 33 Members, liability The company is limited by guarantee and has no Share capital. Every mernber of the charity undertakes to contribute to the assets of the charity, in th& event of it being wound up while he or she is a member or within one year of ceasing to b& 3 member or within one year of ceasing to be a m&mber for debts 3nd li3bilities of th& charity contracted before he or she ceases to be a member, such amounts as may be required not exceeding Él. Deslgnated funds (Group & charltyl The unrestricted fund5 of the charity comprise the unexpended balance5 of donation5 and grant5 which are not subjett to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes. Movement in funds Movement in fund5 Balance at l Aprll 2023 Income Balance at IAprll 2024 Income Balance at 31 March 2025 Property Investment Employment skills, health wellbeinE & deprivation 370,000 370.000 370.000 3,272,034 3,272,034 3,272,034 3,642,034 3.642,034 3.642,034 The Fusion21 Foundation has designated the purchase of 2 housing units made with modern methods of construction. These units will use innO￿te building solutions to enhance the experience of the occupants and will be available at an affordable ront to support the housing crisis. Employment skills, health wellbeing & deprivation.. Tho programmo will deliver benefits in all threo themes and support the achievements of Impatts. As part of the programme we will encourage our members to share their social value priorities and long tertn thinking with the Foundation in return for access to a grass roots Brant to fund Current projects. Thi5 will help to develop the Foundation's research and member engagernent capabilities and improve the knowledge base around member requirements. Project5 that receive funding will contribute to meeting the prograrnme objectives and addre55ing the specific impacts listed against each theme. Th& designated fund include5 £2,000,000 311oc3ted for Social Investment supporting Social Enterprises 3nd Charites struggling following Covid-19. 80- FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 35 Operatin8 lease tommitments Lessee At the reporting end date the charity had outstanding cornrnitment5 for future rninimum lease payments under non- cancellable operating leases, which fall due a5 follow5.. 2025 2024 Within one year Between two and five years 103,958 12,489 126,500 94,875 116,447 221,375 36 Related party tran5action5 Remuneration of key management personnel The remuneration ol key management personnel wa5 as follows.. 2025 2024 Aggregate compensation 732,495 672,667 Transa¢tlons wlth related partles The group ha5 taken advantage of the di5c105ure exetnptlOn5 to which it is entitled regarding tran5actlOn5 between parent and 100% owned 5ub5idiary companies. 81 FUSION 21 FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 37 Cash generated Irom operations 2025 2024 Surplu5 for the year 5.367,712 4.749,641 Adjustments for.. Tax8tion Icredit&dl / charged Investment income recognised in statement of financial activitie5 Interest payable Fair value gains and lossos on invÈstment proporties Amortisation and impairment of intangible assets Depreciation and impairment of tangible fixed assets 33,048 1265,0551 15,694 1326,7911 59,188 73,160 1582,8151 3,6(Kl 93,757 133,845 Movements in working capital.. Ilncreaselldecrease in stocks Ilncreasel in debtor5 Increase in creditors In¢rease/ldecreasel in provisions (Decreasel in deferred income 756,293 11,486,815) 284,041 35,000 138,4251 1494,4851 244,130 193,7881 111,6111 Cash generated from operatlons 4,660,345 3,888,979 Analysi5 of change5 in net fund5 At l Ap￿1 2024 Cash fhiws At 31 March 2025 Cash at bank and in hand 4,835,457 282,124 5,117.581 Loans fallinB due within on& year Loans falling due after more than one year Iio,(KJOI 115,0001 iio,0001 18,0901 6,910 4,810,457 289,034 5,099,491 82-