REGISTERED CHARITY NUMBER: 1165540
REPORT OF THE TRUSTEES AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2025
FOR
THE HEARTH FOUNDATION
HB&O Ltd Chartered Accountants Highdown House 11 Highdown Road Leamington Spa Warwickshire CV31 1XT
THE HEARTH FOUNDATION
CONTENTS OF THE FINANCIAL STATEMENTS for the year ended 5 April 2025
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 2 |
| Independent Examiner's Report | 3 | ||
| Statement of Financial Activities | 4 | ||
| Balance Sheet | 5 | to | 6 |
| Notes to the Financial Statements | 7 | to | 13 |
| Detailed Statement of Financial Activities | 14 |
THE HEARTH FOUNDATION
REPORT OF THE TRUSTEES for the year ended 5 April 2025
The trustees present their report with the financial statements of the charity for the year ended 5 April 2025. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).
FINANCIAL REVIEW
Reserves policy
It is the policy of the charity to maintain unrestricted funds, which are the free funds of the charity, at a relatively high level in order to provide sufficient funds to cover operating costs on the freehold investment properties.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The Charity is constituted as a Charitable Incorporated Organisation (CIO) taking the form of a foundation model charity governed by a trust deed. The Charity changed its name by Special Resolution on 6 April 2017 to The Hearth Foundation.
Foundation
The Charity was initially funded with donations amounting to £2million in June 2016, which together with the resultant tax repayment has been invested in a variety of income producing investments, including freehold property, as detailed in the Accounts.
Aims
The object of the Charity as stated in its constitution, is to advance such charitable purposes (according to the law of England and Wales) as the Trustees see fit from time to time.
The income arising from the investments made will be distributed to beneficiaries' subject to retaining a suitable reserve to cover any expenses on the freehold investment properties not recoverable from tenants. It is the intention of the Trustees to make such grants during the first calendar quarter of each year.
The Charity has no specific restrictions as to any beneficiaries, but particular consideration will be given by the Trustees to applications for the benefit of younger people in the Midlands and North of the country. Applications will be considered throughout the year, and distributed as stated above. The Trustees are confident that in exercising their duties, they have full regard to the requirements of the Charity Commission concerning public benefit.
Financial Performance
The Trustees are satisfied with the performance of the various investments taking into consideration the present economic environment, and are hopeful that the diversity of these investments will provide a good return in years to come for public benefit. No payment has been made to the Trustees for services or expenses. The only expenses paid by the Charity, apart from any irrecoverable expenses relating to the investment properties, have been in respect of professional costs and investment advice. Full details of the financial results for the year ended 5 April 2025 are shown in the Accounts.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number
CE005397 (England and Wales)
Registered Charity number
1165540
Registered office
Monkstone House Main Street Mowsley Lutterworth Leicestershire LE17 6NU
Page 1
THE HEARTH FOUNDATION
REPORT OF THE TRUSTEES for the year ended 5 April 2025
Trustees
M Bosworth Mrs V M Bosworth C M Bosworth Mrs J P M Bosworth S Bosworth Mrs H E Bosworth
The Trustees do not currently intend to seek further funding for the Charity, and are confident that the present Board have a sufficient range of skills for its operation. Consequently, no further appointments are currently envisaged.
Independent Examiner
Mark Ashfield BA FCA HB&O Ltd Chartered Accountants Highdown House 11 Highdown Road Leamington Spa Warwickshire CV31 1XT
Advisers
Legal
Lodders Solicitors, Stratford-upon-Avon
Property
Harris Lamb Chartered Surveyors, Birmingham
Investment
Brewin Dolphin, Birmingham Fairstone Financial Management Limited, Kibworth Leicester
Approved by order of the board of trustees on 11 November 2025 and signed on its behalf by:
M Bosworth - Trustee
Page 2
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE HEARTH FOUNDATION
Independent examiner's report to the trustees of The Hearth Foundation ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the year ended 5 April 2025.
Responsibilities and basis of report
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
-
accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Mark Ashfield BA FCA
HB&O Ltd Chartered Accountants Highdown House 11 Highdown Road Leamington Spa Warwickshire CV31 1XT
11 November 2025
Page 3
THE HEARTH FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES for the year ended 5 April 2025
| Notes INCOME AND ENDOWMENTS FROM Investment income 3 EXPENDITURE ON Raising funds 4 Charitable activities 5 Donations Property fees Other Total Net gains/(losses) on investments NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
2025 Unrestricted fund £ 133,018 100,950 69,500 12,452 1,568 184,470 (58,639) (110,091) 2,948,719 2,838,628 |
2024 Total funds £ 140,116 31,474 66,503 - 12,225 110,202 156,610 186,524 2,762,195 2,948,719 |
|---|---|---|
The notes form part of these financial statements
Page 4
THE HEARTH FOUNDATION
BALANCE SHEET 5 April 2025
| Notes FIXED ASSETS Investments Investments 11 Investment property 12 CURRENT ASSETS Debtors 13 Cash at bank CREDITORS Amounts falling due within one year 14 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 15 Unrestricted funds TOTAL FUNDS |
2025 Unrestricted fund £ 1,358,829 1,311,859 2,670,688 56,762 115,302 172,064 (4,124) 167,940 2,838,628 2,838,628 2,838,628 2,838,628 |
2024 Total funds £ 1,458,945 1,311,859 2,770,804 58,335 126,283 184,618 (6,703) 177,915 2,948,719 2,948,719 2,948,719 2,948,719 |
|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 5 April 2025.
The members have not required the company to obtain an audit of its financial statements for the year ended 5 April 2025 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
-
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The financial statements were approved by the Board of Trustees and authorised for issue on 11 November 2025 and were signed on its behalf by:
The notes form part of these financial statements
continued...
Page 5
THE HEARTH FOUNDATION
BALANCE SHEET - continued 5 April 2025
M Bosworth - Trustee
The notes form part of these financial statements
Page 6
THE HEARTH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS for the year ended 5 April 2025
1. GENERAL INFORMATION
The charity was incorporated under the Charitable Incorporated Organisations (General) Regulations 2012 on 11 February 2016. The charity's registered number and registered office address can be found on the Report of the Trustees.
2. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value, as modified by the revaluation of certain assets.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Investment income is recognised on a receivable basis.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Irrecoverable VAT
There is currently no requirement to restrict any VAT through the VAT returns of The Hearth Foundation as the expenditure it incurs relates wholly to the commercial properties which are all subject to an option to tax and therefore VAT is charged on rents and related service charges.
It is noted that there is a very small amount of exempt income arising from the quarterly service charge invoiced to the occupants of the residential flats which have been sold. It is considered that any VAT incurred in respect of this element would be fully recoverable under the rules for partial exemption.
Grants
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
Allocation and apportionment of costs
Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
All costs are allocated between the expenditure categories of the SoFA on a basis designed to reflect the use of the resource. Directly attributable costs are allocated by resource, with the balance of expenditure allocated according to the proportion of trustee involvement with each resource.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Charity and include the audit fees and costs linked to the strategic management of the Charity.
continued...
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THE HEARTH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 5 April 2025
2. ACCOUNTING POLICIES - continued
Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in market value is recognised in 'net gains/(losses) on investments' in the SoFA.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives.
Investments
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in 'net gains/(losses) on investments' in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.
Financial Instruments
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement.
Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid after taking account of any trade discounts due.
Creditors and provisions
Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
3. INVESTMENT INCOME
| Rents received Investment income Deposit account interest |
2025 £ 106,382 24,344 2,292 133,018 |
2024 £ 109,644 27,666 2,806 140,116 |
|---|---|---|
continued...
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THE HEARTH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 5 April 2025
4. RAISING FUNDS
Investment management costs
| Portfolio management Insurance Property repairs Maintenance charges |
2025 £ 28,364 3,199 57,706 8,756 98,025 |
2024 £ 17,437 3,414 3,000 7,623 31,474 |
|---|---|---|
5. CHARITABLE ACTIVITIES COSTS
| Donations Property fees GRANTS PAYABLE Donations |
Grant funding of activities Support Direct (see note costs (see Costs 6) note 7) £ £ £ - 69,500 - 5,496 - 6,956 5,496 69,500 6,956 2025 £ 69,500 |
Totals £ 69,500 12,452 81,952 2024 £ 66,500 |
|---|---|---|
6. GRANTS PAYABLE
7. SUPPORT COSTS
| SUPPORT COSTS | |
|---|---|
| Other trading activities Other resources expended Property fees |
Governance costs £ 2,925 1,568 6,956 |
| 11,449 |
continued...
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THE HEARTH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 5 April 2025
7. SUPPORT COSTS - continued
Support costs, included in the above, are as follows:
Governance costs
| Governance costs | |||||
|---|---|---|---|---|---|
| 2025 | 2024 | ||||
| Other | Other | ||||
| trading | resources | Property | Total | Total | |
| activities | expended | fees | activities | activities | |
| £ | £ | £ | £ | £ | |
| Accountancy and legal fees | 2,925 | 1,568 | 6,956 | 11,449 | 12,225 |
8. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 5 April 2025 nor for the year ended 5 April 2024.
Trustees' expenses
There were no trustees' expenses paid for the year ended 5 April 2025 nor for the year ended 5 April 2024.
9. STAFF COSTS
There were no staff costs for the year ended 5 April 2025 nor the year ended 5 April 2024.
10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| INCOME AND ENDOWMENTS FROM Investment income EXPENDITURE ON Raising funds Charitable activities Donations Other Total Net gains on investments NET INCOME RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted fund £ 140,116 31,474 66,503 12,225 110,202 156,610 186,524 2,762,195 2,948,719 |
|---|---|
continued...
Page 10
THE HEARTH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 5 April 2025
11. FIXED ASSET INVESTMENTS
| MARKET VALUE At 6 April 2024 Additions Disposals Revaluation At 5 April 2025 NET BOOK VALUE At 5 April 2025 At 5 April 2024 |
Listed investments £ 1,458,945 140,574 (153,442) (87,248) 1,358,829 1,358,829 1,458,945 |
|---|---|
Fixed asset investments comprise a portfolio of listed investments and funds managed by Brewin Dolphin and Fairstone Financial Management on behalf of the charity. The funds are valued on a regular basis by the investment managers with reference to current market prices.
The historic cost of listed fixed asset investments totals £1,171,593 (2024 £1,175,059)
12. INVESTMENT PROPERTY
| FAIR VALUE At 6 April 2024 and 5 April 2025 NET BOOK VALUE At 5 April 2025 At 5 April 2024 |
£ 1,311,859 1,311,859 1,311,859 |
|---|---|
The trustees consider the cost of the investment to equate to market value.
13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Trade debtors VAT |
2025 £ 51,797 4,965 56,762 |
2024 £ 58,335 - 58,335 |
|---|---|---|
continued...
Page 11
THE HEARTH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 5 April 2025
14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| VAT Accruals and deferred income MOVEMENT IN FUNDS Unrestricted funds General fund TOTAL FUNDS Net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 133,018 TOTAL FUNDS 133,018 Comparatives for movement in funds Unrestricted funds General fund TOTAL FUNDS Comparative net movement in funds, included in the above are as Incoming resources £ Unrestricted funds General fund 140,116 TOTAL FUNDS 140,116 |
At 6.4.24 £ 2,948,719 2,948,719 Resources expended £ (184,470) (184,470) At 6.4.23 £ 2,762,195 2,762,195 follows: Resources expended £ (110,202) (110,202) |
2025 £ - 4,124 4,124 Net movement in funds £ (110,091) (110,091) Gains and losses £ (58,639) (58,639) Net movement in funds £ 186,524 186,524 Gains and losses £ 156,610 156,610 |
2024 £ 2,779 3,924 6,703 At 5.4.25 £ 2,838,628 2,838,628 Movement in funds £ (110,091) (110,091) At 5.4.24 £ 2,948,719 2,948,719 Movement in funds £ 186,524 186,524 |
|
|---|---|---|---|---|
15. MOVEMENT IN FUNDS
continued...
Page 12
THE HEARTH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 5 April 2025
15. MOVEMENT IN FUNDS - continued
A current year 12 months and prior year 12 months combined position is as follows:
| Unrestricted funds General fund TOTAL FUNDS |
At 6.4.23 £ 2,762,195 2,762,195 |
Net movement in funds £ 76,433 76,433 |
At 5.4.25 £ 2,838,628 2,838,628 |
|---|---|---|---|
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming resources £ 273,134 273,134 |
Resources expended £ (294,672) (294,672) |
Gains and Movemen losses in funds £ £ 97,971 76,433 97,971 76,433 |
|---|---|---|---|
16. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 5 April 2025.
Page 13
THE HEARTH FOUNDATION
DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 5 April 2025
| INCOME AND ENDOWMENTS Investment income Rents received Investment income Deposit account interest Total incoming resources EXPENDITURE Investment management costs Portfolio management Insurance Property repairs Maintenance charges Charitable activities Light and heat Sundries Grants to institutions Support costs Governance costs Accountancy and legal fees Total resources expended Net (expenditure)/income before gains and losses Realised recognised gains and losses Realised gains/(losses) on fixed asset investments Net (expenditure)/income |
2025 £ 106,382 24,344 2,292 133,018 133,018 28,364 3,199 57,706 8,756 98,025 5,496 - 69,500 74,996 11,449 184,470 (51,452) 28,609 (22,843) |
2024 £ 109,644 27,666 2,806 140,116 140,116 17,437 3,414 3,000 7,623 31,474 - 3 66,500 66,503 12,225 110,202 29,914 104,058 133,972 |
|---|---|---|
This page does not form part of the statutory financial statements
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