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2025-03-31-accounts

NU ACCOU 20fT025 4• CARIN IOPA'( C14ANGING I OMORIIOW

Front cover: Ravi Barod, consultant urological surgeon, with one of the surgical robots at the Royal Free London NHS Foundation Trust, where Mr Barod has led the robotic programme.

Introduction 1
Message from our chair and 2
chief executive
Highlights of our year 4
Caring Today, Changing Tomorrow
Transforming cancer care 6
For patients and staf 10
Welcome North Mid! 14
For researchers 16
How we did it 18
Looking ahead to 2025-26 22
Trustees' report 24
Financial commentary 26
Financial summary 32
Statement of trustees' 36
responsibilities
Structure, governance and 37
management
Independent auditor's report 40
Statement of fnancial activities 43
Balance sheet 44
Cashfow 45
Notes to the accounts 46
Thank you
inside back cover

We exist to support patients – and the staff who care for them – at Barnet, Chase Farm, North Middlesex and the Royal Free hospitals. Our year at a glance:

Powering breakthroughs

£15m in grants to improve care and research, including:

Past investments paying off

Tackling cancer

Major cancer centre appeal launching in 2026 – combining best-in-class care with research which will mean:

Caring for patients and NHS staff

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This year, we’ve grown bigger, bolder and even more ambitious despite a challenging economic and fundraising environment. Following the merger with North Middlesex University Hospital (North Mid) and its community services, we’ve expanded our reach and impact. Our first step at our newest site will be to welcome North Mid’s dedicated volunteers into our volunteering programme – extending the warmth, skill and dedication that our volunteer family brings to every patient’s experience.

Our supporters have once again helped us achieve the extraordinary. Together, we bought a £2m Da Vinci surgical robot, giving the Royal Free London NHS Foundation Trust’s (RFL) world class surgeons their second set of the most modern tools for even more patients. The technology revolution we began last year with the NHS’s first Siemens Quadra PET-CT scanner is delivering results: faster, more accurate cancer diagnoses and fresh insights into lifesaving treatments.

We’ve continued to grow our direct services, delivering practical, emotional and financial support where it’s needed. Our support hub

– described by an independent RFL review as a trailblazer for the NHS – handled nearly 500 new enquiries, supported almost 300 patients and secured £660,000 in benefits for some of our most deprived patients. Our complementary therapy team has added acupuncture, reflexology and lymphoedema massage to their specialist skills and our volunteer numbers have risen from 400 to 500, with a renewed Investing in Volunteers UK accreditation confirming the quality of our programme.

The challenge of cancer has never been greater. The RFL receives more cancer referrals than almost any other NHS trust and cases are rising fast. That’s why we’re preparing our most ambitious campaign yet: to create a pioneering cancer centre.

We’ve strengthened our fundraising team, making it easier for grateful patients to give back to the NHS through us. Donor numbers are climbing and we’re growing our core income alongside the cancer campaign – a vital task in a tough fundraising climate.

This year, we had £15m invested in projects across five key areas, including an even greater focus on

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population health so we can keep more people out of hospital. We launched our first five-year research strategy, achieved full membership of the prestigious Association of Medical Research Charities and funded projects to boost staff wellbeing, raise cancer

awareness and advance research into conditions like liver cirrhosis.

We’ve been a strong voice for NHS philanthropy – engaging with the media, policymakers and politicians to argue for stronger government backing for the role of philanthropy in healthcare, with greater incentives for donors.

The future is changing fast. The NHS’s 10year plan will mean radical changes to our health service. Technology, including artificial intelligence, has the potential to transform how we deliver our mission. We’re building a new long-term strategy that puts us at the forefront of this change – with cancer as a key focus – and we will continue to strive to be an employer of choice for the exceptional charity colleagues who make our work possible.

Jon Spiers Chief Executive

Judy Dewinter Chair

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Service fit for a king

Robotic surgery, faster recovery

When a scan for pneumonia revealed kidney cancer, 70-yearold Eliese Gray (above) received surgery using the new robot funded by our supporters. She was back home just two days after her operation — walking, climbing stairs and healing faster than anyone expected. “If someone were thinking of having robotic surgery I would recommend it highly,” she said.

Evelyn Blumenthal, a Royal Free Charity volunteer since 2018, was awarded a British Empire Medal for her exceptional service to hospital volunteering and dementia care.

After retiring from hospice work, Evelyn (below) dedicated over more than 2,000 hours leading dementia support and training volunteers to care for vulnerable patients. During the COVID-19 pandemic, she provided vital emotional support through the charity’s virtual check-in and chat programme. Evelyn also contributes ethical insights to the hospital’s biobank research.

Dancing again

Faster answers and treatment

After breast cancer treatment left her with painful lymphoedema, Margherita Serpagli (below) feared she’d never dance again. Six charity-funded lymphatic drainage sessions restored her movement — and her joy on the dance floor. “The therapists are so important to the whole hospital system,” she said.

Early in the year the charity was delighted to enable the RFL to receive the UK’s first Siemens Quadra PET-CT scanner. This revolutionary machine, up to 35 times more sensitive than standard NHS equipment, means patients can now experience faster, more accurate scans, at a much lower radiation

dose. Since the scanner become operational:

•[scanning time ] has lowered from 20 minutes to just 10

•[the typical ] turnaround for scans, previously 13–14 days, is now just eight

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Kim Lee ran the 2024 London Marathon for us to say thank you for the treatment his mother received at the Royal Free and Barnet hospitals.

Braving new heights Marsden’s legacy to for others health philanthropy

Patient-centred research

In February 2025, the Royal Free Charity launched our first abseil, inviting supporters to brave the heights of the 70-foot Pears Building over two dates in May in aid of our vital work. This marked a new chapter in our fundraising – bringing together colleagues, NHS and charity staff, patients and members of our community under the expert oversight of Royal Marines instructors.

A group of patients talking about how their experiences have influenced research into diseases was the highlight of our 2024 neighbourhood event at the Pears Building in Hampstead.

hear about the work of the UCL Institute of Immunity and Transplantation, housed in the building, and the close links between research and treatments for patients.

Those who attended also saw a film about the stunning sculpture which hangs over the Mileto Caffe, open to all.

Each year we invite local residents, scientists and RFL clinicians to come and

The role of philanthropy in healthcare was the cornerstone of the 2024 Marsden Lecture, delivered by Paul Ramsbottom OBE, chief executive of the Wolfson Foundation. Paul highlighted the enduring legacy of the founder of the Royal Free Hospital, William Marsden, explored modern challenges to gift giving and paid tribute to the transformative role of philanthropy in driving innovation in health services and research.

Supporters were encouraged to raise sponsorship in aid of the charity and 116 brave participants went on to raise almost £60,000 for our work supporting patients and NHS staff.

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The RFL runs one of the busiest cancer services in the NHS, receiving around 50,000 referrals a year. And the need is growing fast – experts predict a rise of more than 40% in people living with cancer in the next fi ve years.

scanners, the Quadra captures a threedimensional image of the whole body in a single scan. Its remarkable sensitivity slashes scan times and radiation exposure, leading to faster, safer diagnosis and earlier treatment.

The charity’s vision is bold: to make the RFL a centre of world class cancer treatment and outstanding patient experience. In a new cancer centre, we will harness the power of innovation to deliver truly personalised care, give clinicians and researchers the tools to turn pioneering ideas into reality and off er the best wraparound support for every patient. It will stand as a national beacon for both discovery and compassion.

But we’re not waiting for the future to arrive – thanks to our supporters, we’re also changing lives right now.

An NHS fi rst

In March 2024, the Royal Free Hospital became the fi rst NHS site to install the revolutionary Siemens Quadra PET-CT scanner – made possible by the generosity of Royal Free Charity supporters. Up to 30 times more powerful than standard

And with its lower radiation levels, the Quadra can scan those previously excluded from such imaging – including pregnant women.

In September 2024, the Rt Hon Wes Streeting MP, the secretary of state for health and social care, praised the scanner as the kind of innovation the NHS needs: “Patients are seen days, not weeks after being referred, cutting delays in diagnosis that can be the diff erence between life and death.”

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The Quadra's remarkable sensitivity slashes scan times and radiation exposure, leading to faster, safer diagnosis and earlier treatment.

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Robotic surgery and a faster recovery for Eliese

When 70-year-old Eliese Gray went into hospital with pneumonia, scans revealed a more serious problem – kidney cancer. “With kidney cancer you don’t get a lot of symptoms, so I wouldn’t have known I had it without catching pneumonia,” she said.

Her surgery was performed using a new robot funded by our supporters. Although naturally anxious, Eliese was also fascinated by the technology she had seen in documentaries. Both she and her surgeon, Abhishek Reekhaye, were astonished at how quickly she bounced back – one of the key benefits of robotic surgery.

“The consultant came round the day after the operation and saw I was sitting up in the chair. He was surprised and thought that was really good.

“I was just two days in hospital after the operation and on the first day home I was walking up and down the stairs and walking around a bit. The more I walked around the better I felt.”

Eliese added: “If someone were thinking of having robotic surgery I would recommend it highly. It’s definitely less invasive and the recovery time is much shorter.”

'If someone were

thinking of having robotic surgery I would recommend it highly. It's defi nitely less invasive and the recovery time is much shorter.'

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More ways we helped cancer patients this year

been introduced at Barnet and Chase Farm hospitals, thanks to a £10,000 grant. This will mean more precise removal of cancerous skin lesions, reduced hospital stays and faster recovery times.

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ee The Royal Fr Charity makes a daily dif f e rence to patients – and t o th e NHS staff who care for them

W e . .. provide

In the past year...

Our goal is simple: to ensure every patient feels cared for, not just treated.

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Changing attitudes

People living with HIV are benefi ting from improved care, thanks to training funded by us for NHS staff . The sessions, developed by Dr Linda Vaccari, address HIV awareness, stigma reduction and use of respectful language. Dr Vaccari said, “HIV is now a chronic infection that is very manageable. We should reduce stigma by increasing knowledge and empowerment.”

Post-training surveys showed signifi cant gains in staff knowledge and confidence. Dr Vaccari added, “It was really amazing that the charity supported this work...ultimately benefi ting patients.”

Dancing again, thanks to our supporters

After breast cancer treatment in 2018, Margherita Serpagli developed lymphoedema – painful swelling of her arm that restricted movement. Dancing, one of her great joys, was impossible.

Six sessions of manual lymphatic drainage (MLD), funded and delivered by the Royal Free Charity, changed everything. While charity therapists worked to restore movement, volunteers were also on hand throughout her visits, ensuring she felt cared for beyond the treatment room.

“You relax the minute you lie down,” said Margherita. “The therapists are so important to the whole hospital system.”

MLD can be life changing, but the NHS struggles to deliver it to all in need. Our charity service meant Margherita could get help quickly – and return to the dance fl oor.

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'You don’t know how much of a diff erence you’re making'

Diagnosed with ulcerative colitis at 13, Bhavisha has been a Royal Free Hospital patient for 12 years. After emergency surgery and a long hospital stay, she was supported by three charity-funded services.

Volunteers brought comfort, conversation and refreshments — small moments of normality during a diffi cult time. A complementary therapist off ered a massage that eased her pain and lifted her spirits. Later, she joined our infl ammatory bowel disease support group – a safe space to share experiences and learn from others.

“For over 30 years I’ve been suff ering and didn’t know some of the things I’ve learned in the group,” said Bhavisha. “If you support the charity, you don’t know how much of a diff erence you’re making. On the other side, receiving the support, you can’t describe it.”

The virtual tour complements our weekly in-person guided tours by volunteers at the Royal Free Hospital.

Rozalia, a charity therapist, delivering training to ease patients' lymphodema symptoms.

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Art for health’s sake

We have created a virtual guided tour, off ering a fresh way to experience highlights from our extensive art collection. Narrated by broadcaster and journalist Andrew Marr, who has donated one of his paintings to the collection, the online tour allows patients, staff and the public to explore the artworks at their own pace, whether from home or a hospital bed. Mr Marr provides personal refl ections and insights into each piece, bringing the collection to life.

The virtual tour complements our weekly in-person guided tours by volunteers at the Royal Free Hospital. These physical tours not only introduce patients to remarkable works by artists such as Noelle Sandwith, Maggie Hambling and Ed Grey, but also encourage gentle physical activity, aiding rehabilitation and recovery. Both tours help ensure that art is accessible to everyone, off ering inspiration and moments of refl ection.

No one left behind

Staff across our hospitals are benefiting from a wide-ranging programme of wellbeing and inclusivity. The charity-funded freedom from racism programme off ers anti-racism training to help staff challenge

both overt and subtle acts of racism, making our hospitals better places for everyone.

More than 400 staff attended an introductory course, while over 130 joined a four-day course involving refl ection, discussion and activities. Participants learned about practical ways to advocate for racial equality, creating a more inclusive, empowered workforce.

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For patients, the merger w ith No rth Mid will mean faster access to spe cia list c are, shorte r waits and more opportunities for research and innovation. The Royal Free Charity and North Mid Charity joined forces several months before the trusts’ merger, allowing early work on plans to improve the patient experience and boosts support for staff.

In 2026, we will welcome North Mid

volunteers into our volunteering family, making a difference to patients during a stay on the wards and offering extra support for both patients and staff.

Thanks to the generosity of our supporters, we’ve been able to hit the ground running at North Mid with a number of exciting and impactful projects:

“Staff felt listened to. They felt better when working with patients.” These are the words of Rhian Chitambo (right), learning and engagement lead at North Mid, following her charity-funded training to support colleagues after traumatic or otherwise challenging situations at work. The training helps teams

'Staff felt listened to. They felt better when working with patients.'

Rhian Chitambo

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The outdoor gym at North Mid

process difficult experiences and reduce the risk of long-term effects.

Communications box

North Mid now has a communications box to help staff connect with patients in the emergency department. It includes a whiteboard, magnifying sheets, a portable hearing loop and visual aids, supporting, among others, people who don’t speak English, neurodivergent people and patients with learning disabilities. These tools reduce anxiety and make patients more likely to seek care when needed.

Staying close

Relatives and carers of patients at North Mid can now stay with their loved ones if they require close support overnight or are receiving end-of-life care.

Thanks to funding from the Royal Free Charity, 27 portable beds are available for use in wards across the hospital. They are designed for convenience and comfort, ensuring family members can rest without compromising clinical care.

Wellbeing support for staff

One of the first projects to be delivered following the merger was the charity’s refurbishment of an outdoor wellbeing and fitness area (above) within the hospital. It includes a gym with a boxing bag, chin-up bars and a table tennis table, as well as other equipment. And the space can be used for a range of activities when the weather allows, including yoga and Zumba sessions funded by the charity.

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From investing in the latest equipment to funding multimillionpound infrastructure like the Pears Building, we create the strong foundations researchers need to secure national and international funding.

Turning generosity into impact Highlights include £2m for a surgical robot, £230,000 to train “cancer champions” tackling inequalities in screening and early diagnosis and £360,000 for a new education and training faculty promoting preventive health across our communities. Smaller but equally meaningful grants ranged from reusable theatre hats and refurbished counselling rooms to creative writing sessions for cancer patients.

Making every contact count

A £360,000 charity grant has helped to create a new population health faculty serving our four hospitals. The "making every contact count" initiative aims to reduces cancer and cardiovascular disease among north London residents by using patientstaff interactions to promote healthier choices. Emphasising prevention over treatment, it aims to reduce health inequalities and save lives, particularly in deprived communities.

The charity was delighted to gain full membership of the Association of Medical Research Charities – a hallmark of quality and governance – and we launched our first five-year research strategy. Involving people with lived experience in grant reviews is now standard, ensuring funds go where they matter most.

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£10m funding 56 different research projects

The Patel family raised over £26,000 in memory of Pradip, whose kidney transplant rejection inspired them to fund research into preventing graft failure. Their gift is enabling scientists at the UCL Institute of Immunity and Transplantation in the Pears Building to explore new ways to harness the immune system and improve transplant outcomes.

Robin and Tripti Das with their daughters, Ratna and Heera

is investigating potential new treatments for lung fibrosis, offering hope for people with currently limited options.

The Patel family

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Behind every story of a patient helped, a life saved or an NHS colleague supported are the people, processes and assets working tirelessly to make it possible. This year, that “engine room” of our charity has been running at full power, finding new ways to fund our work, make every pound count and ensure our hospitals have what they need to deliver outstanding care.

Raising the funds

In a challenging economic climate, we broadened our fundraising approach and deepened connections with our community. Our first face-to-face fundraising campaign secured more than 550 new regular supporters, each giving an average of £10.40 a month.

Across our hospitals, charity staff worked with local groups – from golf clubs to care homes – generating £15,000 through stalls alone. Challenge events proved more popular than ever, raising almost £57,000, while our first “thankathon” – calling every active donor during the NHS’s 76th birthday – not only strengthened relationships but also raised extra funds.

We listened closely to supporters too, with more than 700 people sharing why they give and how they want us to keep in touch. And we kept our ambitions high – launching a £2.2m appeal for a second surgical robot, alongside major improvements to NHS staff facilities, including a sky garden for intensive care teams and a refurbished restaurant at the Royal Free Hospital.

Supporting our people

The charity has made significant strides in its people strategy this year. A successful staff transfer was completed in May 2024, while recruitment remained a key focus – 30 campaigns were launched between April 2024 and March 2025, filling 19 roles, mainly in fundraising and finance. A new, streamlined recruitment website enhanced the candidate experience.

We achieved reaccreditation as a mindful employer and progressed to Level 2 of the disability confident employer programme, both national initiatives, reinforcing our commitment to staff wellbeing.

Employee engagement remained strong with 129 nominations in the second annual award event which celebrates success and an 87% participation rate in the staff survey. Our new CEO-led lunches for starters encouraged open dialogue, while equality, diversity and inclusion initiatives promoted awareness through events focusing on Diwali, Black History Month and neurodiversity.

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Apprenticeship s s uppor ted care er development and ma n age men t t rainin g strengthen ed leadership c apa bili ty. A refre she d performa nce review pr ocess, com bi ned with succe ssion plann i ng, i s shap in g future growth and developm e nt.

Overall, the charity continues to in ve st in its people, cult ure an d wellbeing to build a resilient, inclu siv e w ork force.

Protecting t he envi ronme nt

We know our supporters expect us to act responsibly on sustainability – and we’re committed to reducing our carbon footprint. Over the past 18 months we’ve fully divested our investments to fossil fuel producers, switched to 100% renewable electricity across all our buildings, redesigned our website to cut its carbon output by 70%, increased our use of recycled materials and embedded sustainability criteria in our grant-making. The Pears Building achieved a BREEAM “Excellent” rating testifying to its sustainability, but we’re just as focused on how we work within it to reduce our footprint.

Our gardening volunteers have transformed the area outside the Royal Free Hospital

Co mmun icating our impact

O ur com municat io ns shift e d from rea ctiv ~~e~~ u pda t es to proac ti ve stor y telling, des i gned to engage, inform an d in sp ire. The launch of ou r new, access ibl e w eb site improv e d supp ort er journeys and u s er experien ce, while movin g away from X , formerly Twitter, and investing i n Bluesky h as helped u s grow a mo r e releva nt, engaged social media aud ience.

From sec u ring major gifts to managing comp lex g ~~ran~~ ~~t s,~~ ~~f rom suppor~~ ~~ti n~~ g st aff wel lbeing to embedding sustainability in every decision, the work behind the scenes this year has been about one thing: making sure the generosity of our supporters translates into the greatest possible impact for patients, staff and our wider community.

We plan to keep building the partnerships, systems and skills that turn generosity into lasting change. By innovating, listening and acting sustainably, we’ll strengthen our impact – ensuring patients, staff and communities continue to benefit from world-class care, pioneering research and healthier futures for years to come.

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By innovating, listening and acting sustainably, we’ll strengthen our impact – ensuring patients, staff, and communities continue to benefit from world-class care, pioneering research, and healthier futures for years to come.

We see the year ahead as an exciting time of change, driven by the launch of our innovative cancer centre campaign and the expansion of hospital support through North Mid. Alongside these advances, we remain committed to our daily work, delivering essential services, grants and cutting-edge equipment that directly support patients and staff. This balance ensures we continue to innovate while providing practical, compassionate care every day.

Next year’s milestone

With North Mid joining the Royal Free London group in January 2025, we now stand alongside four hospitals, each with its own character and community, yet united by a shared vision: healthier lives, exceptional care and a future where no one is left behind.

Our ambitions are bold

The new cancer centre we are working towards will set new standards for care and outcomes, while our growing investment in prevention will help stop illness before it starts. These big goals will sit alongside the everyday support we provide on wards, in clinics and in countless other spaces where patients, staff and families need us most.

Partnerships will guide us

By working closely with our NHS colleagues, we’ll make sure every pound, every project and every service is directed where it will make the greatest difference – whether that’s pioneering research, new patient services or facilities that boost staff wellbeing.

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We will:

With North Mid now part of our charity family, our reach is greater than ever – and so is our responsibility. Together with our supporters, partners and NHS colleagues, we will make 2025-2026 a year of progress, innovation and hope for the communities we serve.

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There is a wealth of clinical evidence that petting a dog for even a few minutes can signifi cantly reduce stress levels and our patients and staff give us plenty of positive feedback when they come into contact with our therapy pets.

ʻHospital staff often work long shifts and a visit from the therapy dogs during their break makes such a diff erence to their day.ʼ

‘The hospital's outpatients have fed back to us regarding how much a therapy dog visit helps them during what can be an anxious visit to the hospital.ʼ

‘Patients in the recovery wards really enjoy a visit from the therapy dogs, especially those who have their own pets at home, who they miss.ʼ

‘Some patientsʼ relatives aren't able to visit them in hospital if they live far away, and a visit from a pet volunteer can break up their day and put a smile on their face.ʼ

Alex Jarvis, director of finance

The charity’s core operating performance was positive this year, supported by increased unrestricted fundraising income and strong performance in treasury management. We are beginning to see the benefits of our efforts to strengthen fundraising and property management, alongside a programme of efficiency savings.

We faced challenges toward the end of the financial year, particularly from the impact of US tariffs on our market investments, and some issues with our properties. As a result, our unrestricted general fund decreased. We are confident that these challenges are temporary and that our long-term financial outlook is positive. Our investments have already begun to recover at the time of writing.

This report provides further detail on our income, expenditure, and assets over the year.

Charitable expenditure

Although our statutory accounts show charitable expenditure of £12.6m, this reflects

a rebate of £1.2m following our resolution of a VAT case with HM Revenue & Customs (HMRC) regarding our previous purchase of a PET-CT scanner, the first of its kind in the NHS. This rebate enables us to deliver even more for our beneficiaries but artificially reduces our reportable expenditure. Excluding the effect of this rebate, our charitable expenditure would be even higher at £13.8m. It includes our patientfacing volunteering, complementary therapy and support hub services, improvements to the

patient and staff experience across our hospital sites and operating our buildings. There is more information about our services earlier in this report.

Voluntary income

We raised £4m of voluntary income, including donations, grants and legacies, of which £0.9m was unrestricted. We have invested in fundraising to support the services we provide directly – our core operations – including grants, sector-leading volunteering, complementary therapy and support hub services. These investments began to pay dividends during the 2024-25 financial year and we expect that their true value will become even clearer during 2025-26.

Properties

We use our properties to deliver social impact while generating income for the charity. The multi-award-winning Pears Building, in Hampstead, houses UCL’s Institute of Immunology and Transplantation, patient accommodation, the charity’s offices and the Mileto café, a social hub for the building and the local community. Occupancy of our patient accommodation remains strong at 74%; during the week we are at capacity and we continue to look for ways to optimise our use of the facility at weekends.

During the year, negotiations with our tenants led to the charity needing to repay overpaid service charges from previous years; as a result, RFC Enterprises Ltd, our wholly-owned subsidiary which manages the building for us, made a loss of £594,000. However, excluding this provision, the

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The charity spent £14.1m during the year on grants and directly-provided services for patients and staff.

subsidiary would have made a profit of £85,000, so we are confident that this represents a oneoff loss and that the subsidiary remains a viable profit-making asset in the medium term.

Graseby House provides NHS office space and short-term, affordable accommodation for Barnet Hospital medical staff. Demand for our 63 residential units remains high, with occupancy rates of over 99%. The building generated net income of around £450,000 for the charity. An updated independent valuation reduced the building's value by £3.1m to £10.7m, largely due to increased interest rates since the 2021 valuation. At present, there are no plans to crystallise these losses by selling the building, although in future we may choose to do so if our strategic position changes.

The Armoury on Pond Street, leased to the Jubilee Hall Trust, a charity with objectives aligned to the charity’s, made a net income of £91,000 for the charity this year. The property is valued at £2.5m.

The Rec Club The charity’s other fully-owned subsidiary, the RFC Recreation Club Ltd (“Rec Club”), operates an affordable fitness facility for hospital staff and the local community. In December 2024 a fire damaged part of the roof and that of the neighbouring property. Works are underway to repair this damage. Despite some business disruption, the Rec Club generated a profit of £74,000 for the charity.

Investments

Our investment portfolio is held with Cazenove

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Capital in a Sustainable Multi Asset Fund. This fund focuses on diversified ethical and sustainable investment products with an appropriate balance of yield and risk. The fund targets growth of the consumer price index (CPI) + 4% (of which the charity takes 4% as income). With CPI at 2.6% for the 12 months to March 2025, this makes for a total target of 6.6%. Against this, our investments provided an overall return of 1.2%. This is largely due to the impact of US tariffs on the value of our investment holdings at the end of the financial year. Our investments have since reversed these losses.

Having reviewed the performance of our

investment managers, we remain confident that their approach is right for us. Trustees take a long-term view of our investment holdings and we are confident that the quality-driven investment strategy underpinning our investment fund will support a sustainable recovery.

At 31 March 2025 we held £15.6m in the

Sustainable Multi Asset Fund, £4m in next-day cash deposits managed by Cazenove Capital and £22m in fixed term cash deposits managed by Handelsbanken. Over the year, we generated income of £572,000 on our investments and £1.4m on cash deposits, which supported our charitable activities.

Processes

During the year, we transitioned to our new finance system, which enabled us to manage our finances in a more efficient and accurate way. Despite substantial progress, there

remain additional areas to improve in terms of streamlining our processes and ways of working to respond to increasing demand for our grants and services.

Reserves

The charity holds three main categories of reserves:

Reserves targets

Trustees are required to ensure that we hold sufficient reserves for the charity to meet its financial commitments and respond to unforeseen circumstances. To do this, trustees have established three reserve targets, based on their evaluation of a series of challenge scenarios relating to expenditure and income.

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Short-term liquidity reserve target

To ensure sufficient ready cash to meet our immediate needs, for 2024-25 trustees have set a minimum balance of cash to be held in instantaccess cash facilities at £2m.

Medium-term ‘free reserves’ target

To address potential medium-term financial challenges, for 2024-25 the charity has a target level of ‘free reserves’ at £1.0m. In line with regulatory requirements, the current level of the strategic reserve is calculated based on general funds, adjusted for fixed assets excluding pure investment properties.

Long-term strategic reserve target

We recognise that some challenges faced by the charity may be longer-lasting and require a more strategic repositioning of the charity’s operations. To address these, trustees have agreed that the charity would deploy a long-term strategic reserve. For 2024-25, the target level of this strategic reserve is £2.8m. The strategic reserve is underpinned by our mixed-motive investment property, Graseby House, which could be sold if required by the strategic position. This reserve is therefore calculated as our ‘free reserves’ plus the value of this property.

Performance against reserves targets

All reserves targets and our performance against them are regularly reviewed by trustees.

We are exceeding our short-term liquidity target and our long-term strategic reserve target, which gives us confidence in both the charity’s cash

~~Purpose~~ ~~Target level~~ ~~31 March 2025~~
Short-term £2m £5m
liquidity reserves
Medium term		 £1m Negative £4.6m
‘free reserves’
Long-term
strategic reserves		 £2.8m £6.1m

position and our ability to respond to systemic or strategic risks which might arise in future. However, we are falling short on our medium-term free reserves target. Although we have a high value of unrestricted reserves, once the value of our properties is deducted, we have negative free reserves. We do not think that this measure of free reserves accurately reflects the financial resilience of the charity, which is why we examine short-term liquidity and our long-term strategic asset base in assessing our resilience.

During the year, our free reserves deteriorated to negative £4.6m (31 March 24: negative £3.1m). This deterioration is due to the impact of US tariffs on our investment holdings in the runup to the end of the financial year, as well as financial adjustments relating to buildings income (see above). Nevertheless, we are on track to achieve our medium-term free reserves target within four years. At the time of writing, our investments have already recovered their losses and we have a robust financial plan in place to improve our free reserves position with a combination of investment growth and income, increased unrestricted fundraising and savings on operational costs.

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Breakdown of total income (£'000)

Donations, legacies and conference fees £4,048

Property operations £2,541

£9.4m Total income

Other income £151

Rec Club trading income £629

Income for the year was £9.4m. Income was derived from voluntary donations, properties, financial investments, operation of the Rec Club and other sources.

----- Start of picture text -----
Donations
£6,314 (48%)
----- End of picture text -----

Donations, legacies and conference fees

Voluntary gifts and donations received by the charity from individuals, corporations, charities and charitable trusts and foundations. This includes speaking and training fees donated to the charity by NHS staff.

Financial investments £2,019

Financial investments

Income and capital growth on our financial investments and cash deposits.

Other income

Income relating to other activities and technical adjustments.

Property operations

Income generated by our properties.

Rec Club trading income

Income generated by the Rec Club which provides health and wellbeing facilities to hospit al staff and members of the local community.

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Breakdown of total expenditure (£'000)

Governance £70 Population health £377 Clinical services & equipment £1,436

Staff experience £1,813

Raising funds £1935

Expenditure for the year was £14.6m split across the five key areas of our work: patient experience, staff experience, research and development, clinical services and equipment and population health, as well as raising funds (through donations and investments) and governance.

£14.6m Total expenditure

Patient experience

The cost of grants and services to improve patient welfare and facilities, including our volunteer, support hub and complementary therapy services.

Research and development

Grants for medical research into new and transformative medical treatments across a wide range of specialities, including researcher salaries, research equipment and materials and other associated research costs.

----- Start of picture text -----
Patient experience
£5,230
----- End of picture text -----

----- Start of picture text -----
Research and development
£3,731
----- End of picture text -----

Clinical services and equipment

Expenditure on new, improved and additional treatment and diagnostic equipment to improve patient care.

Population health

Expenditure that uses data analysis to target specific population groups, address inequalities, prevent health issues and identify problems earlier.

Raising funds

The cost of generating our income, including investment management fees, fundraising staff, events costs and other related costs.

Staff experience

Expenditure to improve the welfare of NHS staff and to provide them with opportunities for professional training and development in addition to those funded by the NHS.

Governance

The regulatory, audit and assurance costs which ensure that the charity's funds are spent and reported in an appropriate, compliant and efficient way.

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Risks and risk management

The trustees recognise their duty to anticipate, manage and mitigate the risks to which the charity’s activities could be exposed. They acknowledge that risk is inherent in all activities and that its management is crucial to achieving the charity’s objects. The trustees take a systematic approach to managing risk, with the executive team regularly monitoring and reporting risks to the board as well as prioritising actions. Risks are rated by multiplying a score for the likelihood of a risk by a score for its severity on a scale from 1-25. Scores before and after mitigation are calculated using a risk matrix. Risk areas with a pre-mitigation score of eight or above are reported to the trustees through the committee and board governance structure.

The board considers the following as the key risks for the organisation...

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3

2

1

Fundraising: risk that the charity fails to hit its fundraised income targets

Roughly half of the charity’s annual income is thanks to the generous support of our donors, large and small. To drive growth in voluntary income, the charity invested in increased fundraising capacity and improved fundraising infrastructure during the year. In common with with the entire charity sector, difficulties for voluntary income include UK and global economic pressures on donors, a very challenging recruitment market for fundraisers and political uncertainty. The board and the executive team continue to closely manage and monitor fundraising performance through in-year reporting against targets.

Finance: risk that the charity is unable to generate sustainable unrestricted surpluses

The charity relies on unrestricted income from fundraising, investments and property to fund much of our mission and operational costs. Underperformance in any of these areas, for example due to market downturns or the difficult fundraising landscape mentioned above, necessitates cost savings and can increase pressure on our reserves.

Our new finance system and investment in finance personnel and processes have improved visibility of our unrestricted position and our ability to respond to budget variances. While market investments were adversely affected by the impact of US tariffs at the year-end, they had more than recovered their losses halfway through the subsequent financial year. The charity has improved its treasury management to maximise returns from our large cash balances. We continue to work closely with our property contractors to reduce costs and increase income across our property portfolio. Financial planning continues to place an emphasis on generating more unrestricted income and cost savings exercises have led to expenditure reductions across all areas of the business.

People: risk that the charity is unable to recruit or retain talented staff

We have been working towards becoming an employer of choice for some time and continue to prioritise hiring and retaining the best people to help us achieve our mission. We operate in a highly competitive employment market and need to keep remuneration, benefits and development opportunities for staff under constant review. Our staff survey indicates that we outperform our peers on virtually every measure of staff engagement and satisfaction, but we are not complacent and continue to improve our offer to staff wherever we can.

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Statement of trustees' responsibilities

The trustees (who are also directors of the Royal Free Charity for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". Company law requires the trustees to prepare financial statements for each financial period that give a true and fair view of the state of affairs of the company and of the incoming resources and application of resources, including the income and expenditure of the company for that period. In preparing those financial statements, the trustees are required to:

basis unless it is inappropriate to presume that the company will continue in business.

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities.

As far as the trustees are aware:

(a) there is no relevant audit information of which the company's auditor is unaware

By order of the trustees

Judy Dewinter Chair of Trustees

Stephen Craig

Trustee and Chair of the Finance, Property and Investments Committee

Date: 11 December 2025

and

(a) select suitable accounting policies and apply them consistently

(b) comply with applicable accounting standards, including FRS 102, subject to any material departures disclosed and explained in the financial statements

(c) state whether a statement of recommended practice applies and has been followed, subject to any material departures which are explained in the financial statements

(b) the trustees have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. The trustees' annual report is approved by the trustees of the charity. The strategic report, which forms part of the annual report, is approved by the trustees in their capacity as directors in company law of the charity.

(d) make judgements and estimates that are reasonable and prudent

(e) prepare the financial statements on a going-concern

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Structure, governance and management

Legal structure

On 1 April 2016, the Royal Free Charity reconstituted as an independent charity (no 1165672), solely regulated by the Charity Commission and no longer subject to NHS legislation. This status establishes the charity’s independence from the Department of Health and, by virtue of becoming a company limited by guarantee (no 09987907), limits the trustees’ liability. The charity operates under a Charity Commission scheme dated 1 April 2016 and its objects, as stated in its articles of association, encompass not only the support of patients of the RFL, but also and more generally the promotion of health and medical research, particularly within the catchment area of the RFL.

Trustees

Following the reconstitution of the charity, new trustees are appointed by the board after open competition. One trustee who was previously a trustee of the former NHS charity is now a trustee of the incorporated charity (Russell Brooks); in addition, the RFL has the right to appoint and remove one trustee. During the year Dr Gillian Smith, group chief medical director at the RFL, fulfilled this role. The chair of trustees aims for new and existing trustees to be fully briefed on the key issues facing the charity, including Charity Commission information on trustee responsibilities, aspects of charity law pertinent to the charity and timely copies of reports, accounts and other key documents. Board members declare all relevant interests in other bodies, especially bodies

closely connected with the RFL. The trustees and their four sub-committees meet quarterly. The committees are: people and governance; finance, property and investments (supported by an investment sub-committee); grants and services; and fundraising, campaigns and communications committees.

Powers of investment

The charity’s powers of investment are principally derived from its articles of association and the Companies Act 2006. In exercising these powers, the trustees must act in accordance with their duties as charity trustees and as company directors as set out in the Charities Act 2011 and the Companies Act 2006. They must also act in accordance with the Trustee Act 2000. These powers of investment are wide, allowing the trustees to invest in such stocks, funds, shares, equities or other investments as they see fit.

Remuneration

The remuneration of senior staff is agreed by the trustees, following a comparison of their posts with similar positions in the charity sector.

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Public benefit statement

The Royal Free Charity’s purpose is to support the RFL’s four hospitals – Barnet Hospital, Chase Farm Hospital, the Royal Free Hospital and North Middlesex University Hospital (which joined the group in 2025), as well as many satellite sites across north London. The trustees, in making decisions about our mission, have had due regard to the Charity Commission's public benefit guidance when exercising any powers or duties to which the guidance is relevant.

We focus our support on three groups:

● Patients and their families, whether local or from further away, needing to use the trust’s specialist services. We enhance the experience of patients throughout their hospital journey, through the services we provide directly and the projects and equipment we fund on the wards.

● The staff of the hospitals and satellite sites, so they can deliver the best possible healthcare.

● Researchers working in the hospitals and partner institutes, helping them to have not only local impact but also the potential to improve healthcare nationally and globally.

The public benefits that flow from our support for these three groups:

1. Patients

Evidence shows that improving the experience of patients leads to better patient safety and clinical outcomes and a better quality of life, particularly for patients facing a poor prognosis; improves patient involvement in, and understanding of, their care; leads to fewer demands for unnecessary treatment; and can expose important system challenges, leading to improvement of care for all.

2. NHS staff

Evidence shows that improving the experience of NHS staff leads to better retention of staff, crucial at a time of chronic staff shortages in the NHS; relieves long-term anxiety caused by work stresses; makes staff feel better prepared for the future; and improves patient outcomes and satisfaction. In addition, improvements to the working environment and the specialist equipment staff use encourage a more holistic approach to treatment, health and wellbeing and improve morale.

3. Researchers

Healthcare research can provide important information about different forms of treatment and outcomes, disease risk factors and trends, public health interventions and healthcare costs, among many other benefits to the public. Our charity primarily supports two aspects of research – clinical trials and translational research. This takes laboratory discoveries and turns them into treatments and interventions that

directly benefit human health. The charity led the funding and construction of the Pears Building, a new home for the UCL Institute of Immunity and Transplantation and supplied seed funding for the RFL’s clinical research facility which in 2022 secured state funding worth £5m.

No harm arose from our work. Our beneficiaries were patients, NHS staff, the general public and locally-based community and voluntary organisations. No private benefit arose from these purposes.

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Reference and administrative detail

Financial statements

The audited consolidated financial statements comply with the Statement of Recommended Practice ‘Accounting and Reporting by Charities’ FRS 102 including Update Bulletin 2, the Charities Act 2011 and the Companies Act 2006.

Governing document

The Royal Free Charity is governed by its articles of association dated 4 February 2016, reviewed and updated in January 2023.

Company number

09987907 in England and Wales

Charity status

The charity is a company limited by guarantee. Its members are the trustees of the charity, of whom there may be a maximum of 14. Each member guarantees to contribute up to one pound sterling (£1) to the charity’s debts, liabilities and costs in the event of the charity being wound up and for one year after ceasing to be a member.

Charity number

1165672 in England and Wales

Registered office

Royal Free Charity Pears Building London NW3 2PP

Charity objects

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Independent auditor's report to the members of the Royal Free Charity

Opinion

We have audited the financial statements of the Royal Free Charity for the year-ended 31 March 2025 which comprise the consolidated statement of financial activities, the comparative statement of financial activity, the consolidated and company balance sheets, the consolidated cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in

accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and charitable company, in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of

the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and charitable company’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised 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 trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion based on the work undertaken in the course of our audit:

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trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

Matters on which we are

required to report by exception In the light of the knowledge and understanding of the group and charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 48, the trustees are responsible for the preparation of the

financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group and charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group and charitable company or to cease operations, 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 misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from

fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org. uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, including financial reporting legislation and the Charities SORP (FRS 102), and tax regulations. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

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Independent auditorʼs report to the trustees of the Royal Free Charity (continued)

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be necessary to the group’s ability to operate or to avoid a material penalty. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We also considered the opportunities and incentives that may exist within the group for fraud. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be management override of controls. Our audit procedures to respond to this risk included enquiries of management, and the Finance Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures

required by auditing standards would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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 so 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 assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Alastair Lyon (Senior Statutory Auditor)

For and on behalf of Crowe U.K. LLP Statutory Auditor R+ Building 2 Blagrave Street Reading RG1 1AZ

Date: 22 December 2025

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Consolidated statement of financial activities

Year ended 31 March 2025 Year ended 31 March 2025 Year ended 31 March 2024 Year ended 31 March 2024
Note Unrestricted Restricted Total Unrestricted Restricted Total
funds funds 2024/25 funds funds 2023/24
£000 £000 £000 £000 £000 £000
Income and endowments from:
Donations and legacies 2 2,511 1,537 4,048 2,514 5,573 8,087
Charitable activities 33 0 33 59 59
Trading activities
Property operations 908 908 838 838
629 629 538 538
1,633 1,633 2,645 2,645
Investments 8.4 1,919 100 2,019 1,990 51 2,041
Other 7 6 13 2 2
Events 6 - 6 282 9 291
Other income 98 98 315 315
Total income 7,745 1,644 9,389 9,184 5,633 14,817
Expenditure on:
Raising funds
Fundraising expenditure 1,906 1,906 1,380 1,380
Trading expenditure 70 70 132 132
Investment/ 29 29 34 34
property management
Charitable activities 3 10,024 2,543 12,567 11,337 2,780 14,117
Total expenditure 12,029 2,543 14,572 12,883 2,780 15,663
Net gains/(losses) on investments 8.6 (3,480) (69) (3,549) 1,906 212 2,118
Net income / (expenditure) (7,764) (968) (8,733) (1,792) 3,065 1,273
Transfers between funds 11 929 (929) - 977 (977) -
Gains on tangible fxed assets 70 - 70 - - -
Net movement in funds (6,766) (1,897) (8,663) (815) 2,088 1,273
Reconciliation of funds:
Total funds brought forward 79,813 30,040 109,852 80,628 27,952 108,581
Total funds carried forward 73,048 28,143 101,187 79,813 30,040 109,852

The notes on pages 46-58 form part of these accounts

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Consolidated charity balance sheet

Group Charity Group Charity
March 2025 March 2025 March 2024 March 2024
Note £000 £000
£000		 £000
Intangible assets 142 125 119 99
Fixed assets
Tangible assets 6 30,315 30,195 30,825 30,709
Investments 8 21,940 22,080 22,663 22,802
Social investments 8 37,636 37,636
41,872		 41,872
Total fxed assets 89,890 89,910 94,790 94,814
Current assets
Debtors 9 2,523 2,347 3,574 3,678
Cash at bank and in hand 23,019 22,738 26,389 25,668
Total current assets 25,542 25,085
29,963		 29,345
Creditors falling due within one year 10.1 (14,388) (13,099) (15,020) (14,259)
Net current assets 11,154 11,986 14,943 15,086
Creditors falling due after more - - - -
than one year
Proft and loss reserves
Total net assets 101,187 102,022
109,852		 109,999
Income funds
Unrestricted 11.1 73,044 73,879
79,811		 79,958
Restricted 11.2 28,143 28,143 30,040 30,040
Total funds 101,187 102,022 109,852 109,999

As permitted by section 408 of the Companies Act 2006, the parent charity's gross income and results have not been included in the financial statements.

Judy Dewinter Date: 11 December 2025 Chair Stephen Craig Trustee The notes on pages 46-58 form part of these accounts Company registration no: 09987907

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Consolidated cash flow statement

Cash infow/(outflow) from operating activities 2024/25
£000		 2023/24
£000
8,056
2,041
17,751
(16,967)
(31)
(113)
(119)
2,562
-
10,618
15,771
26,389
2023/24
£000
1,269
1,255
(1,143)
(2,041)
(1,074)
16,334
(6,544)
8,056
31 March 2025
£000
-
23,019
23,019
Net cash provided by/(used in)
operating activities		 (5,510)
Cash fows from investing activities
Investment income and interest received
Proceeds from disposal of fxed asset investments
Acquisition of fxed asset investments
Acquisition of tangible fxed assets by charity
Acquisiton by subsidiary companies of:
tangible fxed assets
intangible assets
Net cash fow from investing activities		 2,019
1,832
(1,575)
(93)
(20)
(23)
2,140
Cash fow from financing activities
Repayment of loan		 -
(Decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
(3,370)

26,389
23,019
Reconciliation of net income to cash fow from operating activities
2024/25
£000
Net income/(expenditure) including endowments
(8,733)
Adjustments for:
Depreciation and amortisation charges
1,276
Net (gains)/losses on investments
3,549
Investment income
(2,019)
Revaluation of tangible fxed assets
0
(Increase)/decrease in debtors
1,050
Increase/(decrease) in creditors
(633)
Net cash provided by/(used in)
(5,510)
operating activities
Analysis of net cash
Short-term deposits
Cash at bank and in hand		 1 April 2024
Cashfows
£000
£000
-
-
26,389
(3,370)
26,389
(3,370)

The notes on pages 46-58 form part of these accounts

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Notes to the accounts for the year ended 31 March 2025

1 Accounting policies

Basis of preparation

These financial statements are prepared on a going-concern basis, under the historical cost convention, as modified by the revaluation of investments being measured at fair value via income and expenditure within the statement of financial activities. They are prepared in accordance with the financial reporting standard applicable in the UK (FRS 102). The charity is a public benefit group for the purposes of FRS 102, therefore it also prepared its financial statements in accordance with the statement of recommended practice (SORP) applicable to charities preparing their accounts in accordance with the financial reporting standard applicable in the UK (FRS 102 Charities SORP), the Companies Act 2006 and the Charities Act 2011.

They are prepared in GBP sterling, which is the charity's functional currency. Monetary amounts in the financial statements are rounded to the nearest one thousand pounds.

Going concern

The trustees assessed the suitability of the use of the going-concern basis and considered possible events due to conditions, including impact of rising inflation and cost of living, and falling interest rates, that might significantly affect the charity's ability to continue as a going concern. In making this assessment, for a period of at least a year from the date of approval of the financial statements, they considered the charity's financial plans, forecasts and projections and noted the

pressures on donation, legacy and investment income. After making enquiries and considering the available cash balances and funds within the investment portfolio, the trustees believe that the charity has adequate resources to continue to operate and deliver on its objectives for the foreseeable future. It therefore adopts the ‘going-concern basis’ in preparing its financial statements.

Estimates and judgements

Works of art are valued in the balance sheet at £430,950 (2023/24: £361,000), a figure which the trustees believe fairly reflects their value.

Investment properties are valued in the balance sheet at £2,475,000 (2023/24: £2,475,000), a figure which the trustees believe fairly reflects their value. Mixed-motive investment represents a property valued in the balance sheet at £10,700,000 (2023/24: £13,783,116), a figure which the trustees believe fairly reflects its value. See the accounting policy for investment properties, which explains how the valuation has been arrived at.

Financial instruments

The charity has applied the provisions of Section 11 "Basic Financial Instruments" of FRS 102 to all its financial instruments. They are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to

offset the recognised amounts, and an intention to settle on a net basis, or to realise the assets and settle the liability simultaneously.

Apart from prepayments, deferred income and balances with HMRC under statute, all other debtor and creditor balances, as shown in notes 9 and 10, are considered to be basic financial instruments under FRS 102.

Consolidation

These financial statements

consolidate on a line-by-line basis the financial statements of the company (the Royal Free Charity) and its subsidiaries RFC Developments Ltd, RFC Enterprises Ltd, RFC Recreation Club Ltd and RFC Overage Ltd.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits at call with banks and other short-term liquid investments with original maturities of three months or less.

Fund structure

Restricted funds are funds for which a legal restriction exists over their use, as determined by the donor. This could be a restriction to a particular department of the hospital, such as cardiac or renal, or to a particular sphere of activity, for example research or equipment.

General funds may be used at the trustees' discretion for any general purpose of the charity.

Income

All income is included in full in the statement of financial activities as soon as the following

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Notes to the accounts for the year ended 31 March 2025 (continued)

three factors can be met:

(a) entitlement – arises when a particular resource is receivable or the charity's right becomes legally enforceable.

(b) probability – when it is probable that the incoming resources will be received.

(c) measurement – when the monetary value of the incoming resources can be measured with sufficient reliability.

Government grants

Grants relating to revenue are recognised in income on a systematic basis over the periods in which the charity recognises the associated costs for which the grant is intended to compensate.

Gifts in kind

Gifts in kind are recognised as income and expenditure in the year the gifts are received by the charity. The amount at which gifts in kind are recognised is either value of the cost to the donor or the fair value determined by the charity. The gifts are then directed to the relevant hospital department or ward. Total value of gifts in kind for 2024/25 was £nil (2023/24: £nil).

Expenditure

Liabilities are recognised as expenditure if the charity has a legal or constructive obligation that commits it to the expenditure, or if there is a constructive obligation to make a transfer of value to a third party. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the particular category.

Governance costs comprise the costs of complying with statutory requirements.

Allocation of overhead and support costs

Overhead costs have been divided into the categories shown in note 4, and apportioned between those categories (raising funds and charitable expenditure), on the basis of their relevance to each category. In 2024/25, as in 2023/24, a direct charge was made to restricted and designated funds in recognition of the overhead and support costs relating to those funds. The salaries of the charity's staff are apportioned individually across these expense categories, reflecting the time spent by each individual on the relevant activities.

Grants

Grants are accrued in full when there is a binding commitment by the charity to transfer the amounts involved to a third party.

VAT and partial exemption

The charity is in a VAT group with its subsidiary RFC Enterprises Ltd. It is entitled to recover part of the net VAT incurred as a cost. The recovered proportion is small and changes from one accounting period to another, subject to the VAT status of income generated. The irrecoverable element of VAT is expensed through the statement of financial activities as a charge. Where the VAT is in relation to an asset, the irrecoverable VAT is capitalised

along with the net amount of the asset cost.

Investments

Investments are shown in the balance sheet at market value.

The investment property was valued in 2024/25 by Nick Sullivan Chartered Surveyors, and this valuation is reflected in these accounts. The mixed-motive investment property was valued in 2020/21 by Montagu Evans, chartered surveyors. The trustees are satisfied that these valuations reflect the properties’ fair value.

Social investments

Programme-related investments relate to parts of the Pears Building leased to third parties that are used to help to fulfil the charity's charitable objectives. The programme-related investments are held at cost.

Mixed-motive investments (MMI) relate to a property used to help to fulfil the charity's charitable objectives as well as generating investment return.

Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. Depreciation is calculated to write off the cost less estimated residual value of each asset over its expected useful life (see table on page 48).

At the end of each reporting period, the residual values and useful lives of assets are reviewed and adjusted if necessary. In addition, if events or changes in circumstances indicate that the carrying value may

ROYAL FREE CHARITY ANNUAL REPORT + ACCOUNTS 2024-2025

47

Notes to the accounts for the year ended 31 March 2025 (continued)

not be recoverable, then the carrying values are reviewed for impairment.

Properties held as pure investment or MMI, or properties including parts MMI, are not to be depreciated. The Armoury (pure investment property) and Graseby House (MMI) will not be depreciated. The Pears Building is amortised over its lease period and the charge to the statement of financial activities is classed as charitable expenditure.

as an intangible asset in accordance with the relevant accounting standards and the charity’s accounting policy (see table opposite).

Recognition and measurement The website is initially recognised at cost, which includes all directly attributable costs incurred during its development. These costs include design, programming and content creation expenditures but exclude administrative or general maintenance expenses.

The amortisation expense is charged to the statement of financial activities within the expenditure category most relevant to its use.

Impairment

The website is reviewed by management annually for impairment or whenever there is an indication that the carrying value may not be recoverable. Any impairment loss is recognised immediately in the statement of financial activities.

Revaluation and disposals

Intangible assets

The Royal Free Charity’s intangible asset comprises a website developed to facilitate donor engagement and donations, as well as to support its activities and provide information to stakeholders. The website is recognised

Amortisation

The website is amortised on a straight-line basis over its estimated useful life of 5 years. This is comparable to the approach taken in depreciating software held as a fixed asset. Amortisation began when the website was available for use.

The charity does not adopt a revaluation model for its intangible assets. Therefore, the website is carried at cost less accumulated amortisation and impairment losses.

Disposals of the website, or parts of it, are accounted for by

~~Asset type~~
~~Capitalisation threshold~~
~~Depreciation~~
Building - leasehold
£10,000
Lease period
(egPears Building50years)
Building- freehold
£10,000
100years(freehold)
Computer equipment
£2,500 individually or
3 years
exceeding£5,000 in aggregate
Computer systems development
£25,000 in aggregate
5years
Software
£25,000
5 years or expected life, if shorter
(purchased or developed)
Computer development
£2,500 individually or
5 years
exceeding£5,000 in aggregate
Recreation equipment
£1,000 individually or exceeding
5 years
£1,000 in aggregate
ShopEPOS system
£5,000
5years
Shopft-outs
£5,000
Lease term
Furniture and fttings
£2,500 individually or exceeding
5 years
£5,000 in aggregate
Asset under construction
Cost
Not depreciated
Works of art
Market value
Not depreciated		 ~~Asset type~~
~~Capitalisation threshold~~
~~Depreciation~~
Building - leasehold
£10,000
Lease period
(egPears Building50years)
Building- freehold
£10,000
100years(freehold)
Computer equipment
£2,500 individually or
3 years
exceeding£5,000 in aggregate
Computer systems development
£25,000 in aggregate
5years
Software
£25,000
5 years or expected life, if shorter
(purchased or developed)
Computer development
£2,500 individually or
5 years
exceeding£5,000 in aggregate
Recreation equipment
£1,000 individually or exceeding
5 years
£1,000 in aggregate
ShopEPOS system
£5,000
5years
Shopft-outs
£5,000
Lease term
Furniture and fttings
£2,500 individually or exceeding
5 years
£5,000 in aggregate
Asset under construction
Cost
Not depreciated
Works of art
Market value
Not depreciated
Building- freehold £10,000
Computer equipment £2,500 individually or
exceeding£5,000 in aggregate
Computer systems development £25,000 in aggregate
Software
(purchased or developed)		 £25,000
Computer development £2,500 individually or
exceeding£5,000 in aggregate
Recreation equipment £1,000 individually or exceeding
£1,000 in aggregate
ShopEPOS system
 £5,000
Shopft-outs
 £5,000
Furniture and fttings £2,500 individually or exceeding
£5,000 in aggregate
Asset under construction Cost
Works of art Market value

CARING TODAY, CHANGING TOMORROW

48

Notes to the accounts for the year ended 31 March 2025 (continued)

derecognising the carrying value and recognising any gain or loss on disposal in the statement of financial activities.

funds (unrestricted, designated, restricted), which are pooled together.

Pension costs

Leasehold – Pears Building

The Pears Building is classified as social investment for all areas occupied by (and shared with) other entities, which are UCL, the charity, the NHS trust and RFLPS.

Freehold property

Freehold property and part of a freehold property that is in operational use and not a pure investment nor mixed-motive investment would be depreciated over 100 years.

Realised gains and losses

Gains and losses are reported in the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sale proceeds and opening market values (or date of purchase if later). Unrealised gains and losses are calculated as the difference between market value at the year end and opening market value (or date of purchase if later).

~~Intangible assets~~
Cost
£168,858
Accumulated
£27,099
Amortisation
(or impairment)

Pooling scheme

A pooling scheme for all funds held under the auspices of the Royal Free Charity is contained within a Charity Commission scheme dated 1 April 2016. It covers all funds formerly held by the Special Trustees for The Royal Free Hospital, the Royal Free Hampstead Charities, the Dresden Assistance Fund for the Royal Free Hospital and the Kitty Cookson Memorial Fund. It does not distinguish between the different types of

Net book value £141,759
as at 31 March 2025

Staff who were formerly

employed by the Royal Free Hampstead NHS Trust (the predecessor of the Royal Free London NHS Foundation Trust) participate in the NHS Pension Scheme. Some current staff remain in that pension

scheme, but new employees participate in personal pension schemes to which the employer's contribution matches that of the employee up to a maximum of 9%. Staff of the charity's trading subsidiary, RFC Recreation Club Ltd, also participate in personal pension schemes. The NHS Pension Scheme is a multiemployer defined benefit scheme but under SORP 28.11, this is accounted for in these financial statements as if it was a defined contribution scheme.

Operating lease

Rentals paid under operating leases are charged to the statement of financial activities or the profit and loss account (depending on the relevant legal entity), evenly over the period of the lease.

ROYAL FREE CHARITY ANNUAL REPORT + ACCOUNTS 2024-2025

49

Notes to the accounts for the year ended 31 March 2025 (continued)

2 Donations and legacies income

Unrestricted Restricted
Total
funds
funds
2024/25
£000
£000
£000
Donations
2,143
1,417
3,560
Legacies
368
120
488
Total
2,511
1,537
4,048		 Unrestricted
Restricted
Total
funds
funds
2023/24
£000
£000
£000

1,677
5,078
6,755

838
495
1,332

2,514
5,573
8,087

2.1 Contingent assets (pipeline legacies income)

The charity has been notified of 13 legacies which have not been included within the financial statements, as some or all the criteria for recognition have not been satisfied. Of these, 31% are pecuniary legacies which have an average value of £7,600 and the remaining 69% are residuary and residuary (reversionary bequest) which have an average value of £61,000. The charity does not have any indication of when these monies are expected to be received.

3 Charitable expenditure

3 Charitable expenditure
Grants
Activities
Social
Support
Total
expenditure undertaken investment
costs
2024/25
directly
costs
£000
£000
£000
£000
£000		 Grant
Activities
Social
Support
Total
expenditure undertaken investment
costs 2023/24
directly
costs
£000
£000
£000
£000
£000

810
2,851
747
740
5,148

258
1,194
-
319
1,771

114
4,117
478
1,066
5,775

-
1,104
-
319
1,424



1,182
9,266
1,225
2,444
14,117
Patient experience 257
3,258
758
938
5,211
Staf experience 560
796
-
456
1,812
Research and
598
1,861
485
788
3,732
development
Clinical services
926
91
-
419
1,436
and equipment
Population health 267
-
-
110
377
Total
2,608
6,006
1,243
2,711
12,567

All grants were made to institutions. There were no grants to individuals.

4 Analysis of support costs by activity

4 Analysis of support costs by activity
Governance
Raising Charitable
Total
funds
activities
2024/25
£000
£000
£000
£000		 Governance
Raising Charitable
Total
funds activities 2023/24
£000
£000
£000
£000

-
1,047
1,837
2,884

-
34
- 34

131
- -
131

-
89
161
250

-
121
-
121

-
3
25
28
1
120 422
543

132
1,414 2,445
3,991
(132)
132

-
1,414 2,577
3,991
Salaries
-
1,242
1,952
3,194
Investment management
-
29
4
33
Statutory auditor's
66
-
-
66
renumeration
Legal and other professional fees 4
205
365
574
Event costs
-
12
4
16
Publicity materials
-
313
45
358
Others
-
133
341
474
Total support costs
70
1,934
2,711
4,715
Governance costs reallocated
Total support costs
70
1,934
2,711
4,715

CARING TODAY, CHANGING TOMORROW

50

4.1 Grant-funded activities
£000
No. awarded
Royal Free London NHS Foundation Trust
2,838
28
University College London
315
14
London Borough of Barnet
230
1
Rani Rawji StudentshipCommittee
9
1
Total
3,392
44
4.2 Analysis of staf costs
Charity
Subsidiary
Total
2024/25
£000
£000
£000
Salaries and wages
3,472
244
3,716
Social security costs
369
19
388
Otherpension costs
262
6
268
Total
4,103
269
4,372
No employee of any subsidiary company received emoluments exceeding £60,000.
2024/25
2023/24
The number of such
£60,001-£70,000
4
8
employees of the
£70,001-£80,000
2
-
charity were:
£80,001-£90,000
1
1
£90,001-£100,000
2
2
£100,001-£110,000
-
1
£110,001-£120,000
2
-
£120,001-£130,000
1
1
£130,001-£140,000
-
1
£000
£000		 Charity
Subsidiary
Total
2023/24
£000
£000
£000
3,156
223
3,379
340
19
359
169
9
178
3,665
251
3,916
.
Pension contributions
£60,001-£70,000
24
28
were made for these
£70,001-£80,000
3
-
employees as follows:
£80,001-£90,000
7
4
£90,001-£100,000
11
11
£100,001-£110,000
-
4
£110,001-£120,000
41
11
£120,001-£130,000
2
-
£130,001-£140,000
-
8

There was an average monthly number of 75 staff in 2024/25 (2023/24: 75). RFC Recreation Club Ltd had an average number of 10 staff (2023/24: 11), and RFC Developments Ltd did not employ any staff.

The key management personnel during the year were Jon Spiers, chief executive; Robin Meltzer, deputy chief executive and director of engagement and communications; Laura James, director of services and innovation; Alex Jarvis, director of finance; Sharron Grant, director of HR and OD; Alison Kira, director of grants and impact; Russell Delew, director of fundraising and campaigns.

The total salary cost of the key management personnel (including social security and employer pension costs) was £864,783 (2023/24: £1,024,114).

During the year, the charity made total termination payments of £109,942 (2023/24: £19,116).

ROYAL FREE CHARITY ANNUAL REPORT + ACCOUNTS 2024-2025

51

Notes to the accounts for the year ended 31 March 2025 (continued)

5 Analysis of net assets between funds
Group
Unrestricted
Restricted
Total
funds
funds
2024/25
£000
£000
£000		 5 Analysis of net assets between funds
Group
Unrestricted
Restricted
Total
funds
funds
2024/25
£000
£000
£000		 5 Analysis of net assets between funds
Group
Unrestricted
Restricted
Total
funds
funds
2024/25
£000
£000
£000		 Unrestricted
Restricted
Total
funds
funds
2023/24
£000
£000
£000
30,944
-
30,944
61,586
2,379
63,965
2,301
27,662
29,963
(15,020)
-
(15,020)
Fixed assets/
intangible assets
Investments
Current assets
Liabilities
Charity
 30,456
-
30,456
55,571
4,005
59,576
1,404
24,138
25,542
(14,388)
-
(14,388)
73,044
28,143
101,187
Unrestricted
Restricted
Total
funds
funds
2024/25
£000
£000
£000
79,811
30,041
109,852
Unrestricted
Restricted
Total
Funds
Funds
2023/24
£000
£000
£000
30,808
-
30,807
61,725
2,379
64,104
1,684
27,662
29,345
(14,259)
-
(14,259)
Tangible fxed assets
30,321
-
30,321
Investments
55,710
4,005
59,715
Current assets
947
24,138
25,085
Short-term liabilities
(13,099)
-
(13,099)
73,879
28,143
102,022
6.1 Fixed assets – group

Recreational
Furniture and
Artworks

equipment
fxtures
Cost
£000
£000
£000
79,957
30,041
109,998
Computer
Properties
Total
equipment
£000
£000
£000
Brought forward at 1 April 2024
Additions
Revaluation
Transfer
Carried forward at 31 March 2025
Accumulated depreciation
Brought forward at 1 April 2024
Charge for the year
Carried forward at 31 March 2025
Net book value at 1 April 2024
Net book value at 31 March 2025
6.2 Fixed assets – charity

Cost		 213
81
361
20
92
-
-
-
70
-
-
-		 69
31,581
32,306
-
-
113
-
-
70
-
-
-
-
233
173
431		 69
31,581
32,487
98
31
-
16
20
-		 36
1,313
1,479
13
643
692
114
52
-		 49
1,957
2,171
115
49
361		 33
30,268
30,828
119
121
431		 20
29,624
30,315
Furniture and
Artworks
fxtures
£000
£000
£000		 Computer
Properties
Total
equipment
£000
£000
£000
Brought forward at 1 April 2024
Additions
Revaluation
Carried forward at 31 March 2025
Accumulated depreciation
Brought forward at 1 April 2024
Charge for the year
Carried forward at 31 March 2025
Net book value at 1 April 2024
Net book value at 31 March 2025		 81
361
-
92
-
-
-
70		 69
31,581
32,092
-
-
92
-
-
70
-
173
431		 69
31,581
32,254
31
-
20		 36
1,313
1,381
13
643
676
-
52
-		 49
1,957
2,057
-
50
361		 33
30,267
30,711
-
121
431		 20
29,624
30,196

CARING TODAY, CHANGING TOMORROW

52

6.3 Intangible fixed assets – group

RFC Charity RFC Recreation Total
Club
Cost £000 £000 £000
At 1 April 2024 99 21 120
Additions 49 - 49
Carried forward at 31 March 2025 148 21 169
Depreciation and impairment
At 1 April 2024 - 1 1
Amortisation charge for the year 22 4 26
Carried forward at 31 March 2025 22 5 27
Carrying amount at 31 March 2024
99		 21 119
Carrying amount at 31 March 2025 125 16 142

7 Subsidiary companies

Details of the charity's subsidiary undertakings are set out below. All the subsidiary undertakings are incorporated in England and Wales and operate in the United Kingdom.

Company Shares held Shares held Shares held Principal activity
Class %
RFC Recreation Club Ltd Ordinary 100 Provision of recreational services
RFC Developments Ltd Ordinary 100 Design, construction and building services
RFC Enterprises Ltd Ordinary 100 Management of Pears Building
RFC Properties Ltd Ordinary 100 Company dormant and not yet trading
RFC Overage Ltd (previously called: Ordinary 100 Management of intangible assets
RFC Properties (CF Holdings) Ltd) from disposal of a property
The results of the subsidiaries, and their assets and liabilities, are as follows:
Year ended 31 March 2025 Year ended 31 March 2024
RFC RFC
RFC		 RFC RFC
RFC		 RFC RFC
Overage Enterprises Recreation Developments Overage Enterprises Recreation Developments
Ltd Ltd
Club Ltd		 Ltd Ltd
Ltd		 Club Ltd Ltd
£000 £000
£000		 £000 £000
£000		 £000
Turnover -
1,633
629		 -
-
2,645		 538 2
Expenditure -
(2,321)		 (555) -
-
(2,055)		 (473) (1)
Result for the year -
(687)		 75 -
-
590		 65 2
Total assets 50
863
439		 6 50
2,074		 317 5
Total liabilities (52) (1,567) (286) (6) (52)
(2,183)		 (164) (6)
Net funds at the end of the year (2) (704) 153 -
(2)
(109)		 153 (1)
The charity's other subsidiary companies did not trade during 2024/25.

8 Analysis of investment portfolio

Group
Charity
Group
Charity
2024/25
2024/25
2023/24
2023/24
£000
£000
£000
£000
Market value as at 1 April
Less: disposals at carrying value
Add: acquisitions at cost
Transfer from fxed assets (note 6)
Net gain/(loss) on revaluation
Market value as at 31 March		 63,966
64,104
63,101
63,240
(2,415)
(2,415)
(18,335)
(18,335))
1,575
1,575
17,081
17,081
-
-
-
(3,549)
(3,549)
2,118
2,118
59,577
59,715
63,966
64,104

ROYAL FREE CHARITY ANNUAL REPORT + ACCOUNTS 2024-2025

53

Notes to the accounts for the year ended 31 March 2025 (continued)

8.1 Investments – market value at 31 March
Held
Held
2024/25
in UK
overseas
Total
£000
£000
£000		 8.1 Investments – market value at 31 March
Held
Held
2024/25
in UK
overseas
Total
£000
£000
£000		 Held
Held
2023/24
in UK
overseas
Total
£000
£000
£000
2,475
-
2,475
Investment properties
Investments portfolio
Investments listed on London Stock Exchange
Investments in common investment funds
Cash held within the investment portfolio
Social Investments
Mixed-motive investment (see note 8.2)
Programme-related investment (see note 8.3)
Total investments – group
Investments in subsidiary companies
Total investments – charity
8.2 Mixed-motive investment		 2,475
-
2,475
39
39
19,407
19,407
19
19
19,425
39
19,464
10,700
-
10,700
26,936
26,936
37,636
-
37,636
59,536
39
59,575
139
-
139
59,675
39
59,715
Group
Charity
2024/25
2024/25
£000
£000
13,783
13,783
-
-
(3,083)
(3,083)
10,700
10,700
-
39
39
20,042
-
20,042
106
-
106
20,148
39
20,187
13,783
-
13,783
27,519
-
27,519
41,302
-
41,302
63,925
39
63,964
139
-
139
64,065
39
64,104
Group
Charity
2023/24
2023/24
£000
£000
13,783
13,783
-
-
-
-
Market value as at 1 April
Add: acquisitions at cost
Less: loss on revaluation
Market value as at 31 March
13,783
13,783

Mixed-motive investments relate to a property used to help to fulfil the charity's charitable objectives as well as generating investment income. A Red Book valuation of that property, using a sector specific valuation toolkit (PodPlan), was performed during the 2024/25 financial year and resulted in a value of £10.7m.

.

8.3 Programme-related investments

Group Charity Group Charity
2024/25 2024/25 2023/24 2023/24
£000 £000 £000 £000
Market value as at 1 April 27,519 27,519 28,102 28,102
Amortisation for the year (584) (584) (583) (583)
Market value as at 31 March 26,936 26,936 27,519 27,519
Programme-related investments relate to the Pears Building, leased to third parties that are used to help to fulfl
the charity's charitable objectives.
8.4 Analysis of investment income
Held Held 2024/25 Held Held 2023/24
in UK overseas Total In UK overseas Total
£000 £000 £000 £000 £000 £000
Investment properties (11) - (11) 88 - 88
Mixed motive investment 10 - 10 57 - 57
Investments in common investment funds 871 - 871 697 - 697
Bank deposit interest 1,148 - 1,148 1,198 - 1,198
Total investment income
 2,019 - 2,019 2,040 - 2,040

CARING TODAY, CHANGING TOMORROW

54

8.5 Details of material investment holdings

At the end of the financial year, the charity has one investment manager, Cazenove.

Investments exceeding 5% of the respective manager's portfolio are:

Value
2025
£000		 Value
2024
£000
Cazenove
Sustainable Multi-Asset Fund
15,402
J P Morgan
4,005
Total
19,407		 15,942
4,207
20,149

8.6 Gains/losses on investments

The 2024/25 net loss of £397,000 relates to the realised/unrealised loss on investment in common investment funds.

9 Analysis of debtors

9 Analysis of debtors
Group
Charity
2025
2025
£000
£000		 Group
Charity
2024
2024
£000
£000
44
38
-
-
-
19
-
457
-
52
3,530
3,111
3,574
3,678
Prepayments
133
97
Due from subsidiary undertakings:
RFC Developments Ltd
-
-
RFC Recreation Club Ltd
-
174
RFC Enterprises Ltd
-
397
RFC Overage Ltd
-
52
Other debtors
2,391
1,628
Total debtors
2,523
2,347

10 Analysis of creditors

10.1 Creditors falling due within one year

10 Analysis of creditors
10.1 Creditors falling due within one year
Group
Charity
2025
2025
£000
£000		 Group
Charity
2024
2024
£000
£000
14,118
10,244
658
2,198
-
-
-
-
-
1,571
245
245
15,021
14,258
Grant and other accruals
12,196
11,134
Trade creditors
1,466
1,222
Due to subsidiary undertaking - RFC Rec Club
-
51
Due to subsidiary undertaking - RFC Enterprises Ltd
-
-
Intercompany with RFC Enterprises Ltd
-
-
Other creditors
726
692
Total creditors falling due within one year
14,388
13,099

ROYAL FREE CHARITY ANNUAL REPORT + ACCOUNTS 2024-2025

55

Notes to the accounts for the year ended 31 March 2025 (continued)

11 Analysis of material funds

11.1 Unrestricted funds

11 Analysis of material funds
11.1 Unrestricted funds
Designated funds (2024/25) Opening Income Expenditure Restricted Gains Closing
balance transfers (loss) balance
£000 £000 £000 £000 £000 £000
Friends' Fund – transferred from the formerly
separate charity, Friends of the
Royal Free Hospital departmental funds* 16 2 - (19) - -
Clinical biochemistry 450 8 (192) (10) - 256
HIV/AIDS
Infammation services: amyloidosis		 1,327
901		 -
370		 (37)
(79)		 (32)
(28)		 -
-		 1,258
1,166
Haematology: training, research 629 92 (224) (13) - 483
and patient welfare
Simulation centre 258 17 (4) (7) - 264
Nuclear medicine 428 45 (72) (10) - 391
RFC medical equipment fund 320 - - - - 320
HPB fund 150 (2) (23) 139 - 264
Meena Raja Kidney Cancer Foundation 82 301 (79) (7) - 298
North Middlesex University Hospital - 215 (123) 0 (1) 92
Others 6,751 581 (1,229) (491) - 5,612
Total designated funds 11,313 10,404
Other general funds (undesignated) 68,501 6,277 (10,059) 1,406 (3,480) 62,644
Total unrestricted funds 79,813 73,048

*These funds derive from donations and legacies made by grateful patients and their relatives over many years and are under the day-to-day control of fundholders in specific areas of the Royal Free London NHS Foundation Trust (cardiac, renal, etc) for use on appropriate projects as they arise. .

11.2 Restricted funds

11.2 Restricted funds
Restricted funds 2024/2025 Opening Income Expenditure Restricted Gains Closing
balance transfers (loss) balance
£000 £000 £000 £000 £000 £000
Trust infrastructure fund 11,880 - - - - 11,880
RFL fund 8,119 (1) 6
70		 (290) 8,498
Patient experience funds
Staf experience funds		 -
-		 -
1		 -
-		 -
-		 - -
1
Restricted grants 559 764 (935) (498) - (110)
NAC capital fund 6,207 - (57) (154) - 5,996
Peter Costin Memorial 544 - (11) - - 533
St Peter's Trust 168 9 (199) - - (22)
Kitty Cookson Memorial - - 109 (2) - 107
J F Moorhead 2,289 100 (44) - (69) 2,277
Dr Janet Owens Fellowship 275 - (28) (6) - 241
North Middlesex University Hospital - 368 (44) (7) - 318
Surgical robot - 397 (2,011) - - (1,614)
Other - 5 10 27 - 40
Total restricted funds 30,041 1,644 (2,539) (929) (69) 28,143

Restricted grants consist of individual funds, which are kept under one fund. The funds are distributed as per the contractual terms and conditions.

.

CARING TODAY, CHANGING TOMORROW

56

11.2 Restricted funds (continued)

Restricted funds (2023/2024) Opening Income Expenditure Restricted Gains Closing
balance transfers (loss) balance
£000 £000 £000 £000 £000 £000
Trust infrastructure fund 12,000 - - (120) - 11,880
RFL fund 8,610 1,170 (1,048) (613) - 8,119
Patient experience funds
Staf experience funds		 -
-		 -
-		 -
-		 -
-		 - -
-
Restricted grants 545 434 (187) (234) - 559
NAC capital fund 3,486 3,944 (1,224) - - 6,207
Peter Costin Memorial 572 - (18) (10) - 544
St Peter's Trust 222 33 (88) - - 168
Kitty Cookson Memorial 109 - (109) - - -
J F Moorhead 2,058 263 (32) - - 2,289
Dr Janet Owens Fellowship 350 - (75) - - 275
Total restricted funds 27,953 5,845 (2,780) (977) - 30,041

Restricted grants consist of individual funds, which are kept under one fund. The funds are distributed as per the contractual terms and conditions.

.

11.3 Details of the restricted funds

Trust infrastructure fund RFL fund Patient experience funds Staff experience funds Restricted grants NAC capital fund Peter Costin Memorial St Peter's Trust Kitty Cookson Memorial J F Moorhead Dr Janet Owens Fellowship North Middlesex University Hospital Surgical robot

To fund clinical infrastructure improvements

To fund various projects and contribute to development of cancer centre To fund enhancement of experience of NHS patients To fund enhancement of experience of NHS staff To fund individual projects as described in the contracts To support amyloidosis research To provide bursaries to medical students To support kidney, bladder and prostate research To support an oncology fellowship To support renal research To support research into Parkinson's disease To fund individual projects at North Mid To fund the purchase of a new surgical robot at RFH

12 Contingent liabilities

There were no contingent liabilities at either 31 March 2025 or 31 March 2024.

13 Trustees and connected persons transactions

No trustee or member of the key management staff, or person related to them, undertook any material transactions with the charity in either 2024/25 or 2023/24.

Judy Dewinter (trustee) was reimbursed expenses of £717 (£562 in 2023/24).

Trustees of the charity (and their families) made donations to the charity totalling £7,519.69 (£373,395 in 2023/24). Indemnity cover is provided for the trustees by the charity.

The charity provides the majority of its grants by number and value to the trust (see Note 3).

ROYAL FREE CHARITY ANNUAL REPORT + ACCOUNTS 2024-2025

57

Notes to the accounts for the year ended 31 March 2025 (continued)

14 Related party interests

RFL employees who are also trustees of the charity: Julie Hamilton, group chief nurse; Peter Landstrom, group chief executive; Akta Raja, non-executive director (to September 2024); Dr Gillian Smith, group chief medical officer.

The charity has five subsidiary companies, in all of which it is sole shareholder, as follows:.

RFC Recreation Club Ltd (company no 7686541):

Company directors and employees of the charity: Laura James, director of services and innovation; Alison Kira, director of grants and impact; Mark Tanton, head of property and operations (to July 2025); David Bulbeck, finance business partner (appointed 4 October 2024), are employed by the charity and are also company directors. Company director and charity trustee: Melanie Sherwood.

In 2024/25, RFC Recreation Club Ltd was recharged by the charity £268,071 in respect of staff salaries (2023/24: £250,850).

The company made a gift aid distribution to the charity of £74,504.60 (2023/24: £65,473.40).

The company owed £99,374 in invoices to the charity (2023/24: £20,624)

The charity paid the company £nil (2023/24: £nil) in respect of the use of facilities. None of this was outstanding at 31 March 2025.

The intercompany balance at year end owed by the charity was £51,003.69 (2023/24: £19,444.53).

RFC Developments Ltd (company no 8729267):

Company director and employee of the charity: Jon Spiers, chief executive. Company director and trustee: Judy Dewinter.

Provision of administrative services by the charity to RFC Developments Ltd - RFC Developments Ltd was charged £nil (2023/24: £nil).

During the year RFC Developments Ltd made a gift aid distribution of £78.46 to the charity (2023/24: £nil).

RFC Enterprises Ltd (company no 8729268):

Company director and charity trustee: Judy Dewinter. Company director and employee of the charity: Jon Spiers, chief executive.

In 2024/25, the transactions between RFC Enterprises Ltd and the charity were:

The charity recharged to RFC Enterprises Ltd total costs, net of VAT, of £1,058,525 (2023/24: £543,458) in respect of Pears Building expenditure paid on the company's behalf. At the year-end £397,335 (2023/24: £nil) was owed to the charity by RFC Enterprises Ltd.

RFC Enterprises Ltd charged the charity £88,950 (2023/24: £1,555,288) in respect of services provided at the Pears Building.

At the year-end the charity owed £nil (2023/24: £1,571,031) to RFC Enterprises Ltd.

During the year RFC Enterprises Ltd made a gift aid distribution of £nil to the charity (2023/24: £589,465).

RFC Properties Ltd (company no 10609331):

There were no transactions between the charity and the subsidiary during 2024/25 (2023/24: none).

There were no outstanding balances from either party at 31 March 2025 (31 March 2024: none).

RFC Overage Ltd (company no 10699295):

Company director and charity employee: Jon Spiers, chief executive. Company director and trustee: Judy Dewinter (from July 2025).

The charity loan balance of £50,000 to the subsidiary remains in 2024/25 (2023/24: £50,000). The subsidiary owes £50,000 to the charity for the rights of a sold property (2023/24: £50,000).

There were outstanding balances between both parties for £51,620 at 31 March 2025 (31 March 2024: £51,620).

15 Members' liability

The charitable company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the charitable company on winding up, such amounts as may be required not exceeding £1.

CARING TODAY, CHANGING TOMORROW

58

Our trustees

Judy Dewinter Chair of Trustees Akta Raja (resigned 30 September 2024) Vice-Chair of Trustees to 30 September 2024 Simon Lyons Vice-Chair of Trustees from 1 October 2024 Russell Brooks Stephen Craig (appointed 10 June 2025) Julie Hamilton Valerie Jolliffe Peter Landstrom Avani Mehta (appointed 12 March 2024, resigned 12 March 2025) Katie Morrison Alison Munday (appointed 1 April 2025) Nnenna Osuji (appointed 21 May 2024, resigned 28 January 2025) Melanie Sherwood Gillian Smith

Senior leadership team

Jon Spiers Chief Executive Robin Meltzer Deputy Chief Executive, Director of Engagement and Communications David Cheesman Interim Director of Strategy (contract ended 9 May 2024) Russell Delew Director of Fundraising and Campaigns (previously Director of Campaigns, appointed interim Director of Fundraising and Campaigns 1 August 2024, appointed Director of Fundraising and Campaigns 1 January 2025) Sharron Grant Director of People and Culture Alex Jarvis Director of Finance and Company Secretary Laura James Director of Services and Innovation (previously Assistant Director of Innovation, appointed in current role 30 August 2024) Alison Kira Director of Grants and Impact Paul Stein Executive Director of Fundraising (resigned 31 July 2024) Jenny Todd Assistant Director of Services (resigned 29 August 2024)

Design: Adam Brown_01.02 Photography: Back cover/p.30-31 © Anhel de Serra Printed by Regent Print

Professional advisors

BANKERS

Lloyds Bank PLC 140 Camden High Street London NW1 0NG

Handelsbanken 2nd Floor 6 Hampstead High Street London NW3 1PR

INVESTMENT MANAGERS Cazenove Capital Management 1 London Wall Place London EC2Y 5AU

AUDITORS

Crowe UK LLP Thames Valley Aquis House 49-51 Blagrave Street Reading RG1 1PL

SOLICITORS AND LEGACY ADVISERS Withers LLP 20 Old Bailey London EC4M 7AN

Charles Russell Speechlys 5 Fleet Place London EC4M 7RD

60

On behalf of the staff and patients of the Royal Free London NHS Foundation Trust and everyone at the Royal Free Charity, we offer our heartfelt thanks to all our supporters, including those who choose to give anonymously. Our generous network has raised funds, increased awareness of our charity and enabled us to respond flexibly to the evolving needs of our hospitals, patients and staff during the past year.

royalfreecharity.org @royalfreecharity RoyalFreeCharity info@royalfreecharity.org

Charity no. 1165672

Company registration no. 09987907