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2025-12-31-accounts

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WORCESTER MUNICIPAL CHARITIES ( CIO )

Registered Charity No.1166931 • Member of the Almshouse Consortium Registered Housing Association No.4855 • Member of the Almshouse Association No.159

Predecessor charities founded 1559 & 1836

TRUSTEES' ANNUAL REPORT 1st JANUARY – 31st DECEMBER 2025

This is the tenth Annual Report of the Charity which was created specifically by the Trustees in 2016 as the replacement Charity for Worcester Municipal Exhibitions Foundation (Education) and Worcester Consolidated Municipal Charity (Relief in Need & Almshouses), whose business, staff, assets and liabilities were vested in the new Charity on 1st July 2016, as a “Charitable Incorporated Organisation” which has very similar objects to the two unincorporated predecessor Charities which it replaced.

The Trustees present their report and the audited financial statements of the Charity for the twelve months’ period ended 31st December 2025 (“The Period”). The Trustees have adopted the provisions of the Charities SORP "Accounting and reporting by charities: Statement of recommended practice applicable to charities preparing their accounts in accordance with the financial reporting standard applicable in the UK and Republic of Ireland (FRS 102) and the Housing SORP; Accounting by Registered Social Housing Providers update 2018."

The financial statements for the Charity have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the Statements of Recommended Practice.

All enquiries to the Registered Office: Worcester Municipal Charities (CIO) Kateryn Heywood House, Berkeley Court The Foregate, Worcester WR1 3QG Telephone: 01905 317117

Office Administration:

Maggie Inglis, Sarah Bradnick, Margaret Green Email: admin@wmcharities.org.uk

Office Accounts:

Carlo Barentsen, Sarah Bradnick Email: accounts@wmcharities.org.uk

Property Business Manager:

Adrian Robinson MRICS, arc Surveyors Limited Email: ar@arcsurveyors.net

Website: www.wmcharities.org.uk

Berkeley's Hospital Chapel and Almshouses - Grade 1 Listed Building Providing sheltered housing for seven residents, the Charity's offices, and the redundant Chapel, now used as a meeting room for Trustees, residents and also available for other charities to use free, providing they meet certain conditions such as not holding more than 1 year’s income in reserve.

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WORCESTER MUNICIPAL CHARITIES ( CIO )

"The Charity"

REPORT FOR THE 12 MONTHS’ PERIOD ENDED 31st DECEMBER 2025 (“The Period”)

For ease of understanding “the Charity” also refers generally to the two predecessor charities in respect of events prior to 1st July 2016

Item
INDEX
 Page
1. History of the Constitutional Changes leading to the Present Day 4.
2. The Charitable “Objects” of the Charity and the Charitable “Areas of Beneft” 4.
3. Constitutional “John Palmer” Grant payable under the terms of the Trust Deeds 5.
4. Administration of the Trustee Body - the Trustees who served in The Period 5.
5. Composition of the Trustee Body and the Administration 5.
6. Professional Advisers to the Charity 6.
7. The Mission Statement, Public Beneft Requirement and Equal Opportunities 6.
8. A summary of what was achieved during The Period 7.
8. The Grants Committee 8.
9. Almshouses – 32 fats for the Retired and 68 fats for the Working Age Homeless 9.
10. Grants Awarded in “The Period” by the Charity 12.
11. The Grants Committee’s Policies and Practices 13.
12. Social Investment Programme - Six Rent-Free properties provided for other charities 14.
13. Strategic and Charitable Objectives, Investment Policy & Reviews 17.
14. The Cost of Administration & Governance 21.
15. Property Valuations 21.
16. Property Insurances 21.
17. Extraordinary Repairs of Commercial Properties and Almshouses 21.
18. Reserves Policy and Financial Risk Assessments 22.
19. Staf Remuneration 22.
20. Serious Incidents 22.
21. Property Portfolio 23.
22. Conclusion and Comment 24.
23. Legislation, Policies, Procedures and Practices - compliance 26.
24. Principal Advisers & Trustees' approval of the Report 27.
25. Audited Accounts- Worcester Municipal Charities (CIO) 28.
26. Paul Grifth MBE - Tribute 59.

Note – In 2020 the Charity published “While the World Endureth” , a history of the Trust since 1559. There are only a few copies left for sale from the office @ cost price £27. They are available at the Hive and can also be viewed on the website: http://www.wmcharities.org.uk

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1. CONSTITUTIONAL CHANGES LEADING TO THE PRESENT DAY

2. THE “CHARITABLE OBJECTS” OF THE WMC (CIO) ARE:

The Trustees believe the charitable objects collectively constitute the public benefit requirement of the Charity Commission.

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3. "CONSTITUTIONAL GRANT” PRESCRIBED BY THE TRUST DEEDS

By virtue of the intention of the original benefactors and the original constitutions of the predecessor charities, the following grant is automatically payable each year:

"Nought point one per cent (0.1%) of the “Net” income of the CIO from its permanent endowment assets income of the CIO, or as near as may be applied, shall be applied in augmenting the income of the charity called Palmer’s Educational Foundation in the Ancient Parish of Suckley in the County of Worcestershire."

The Trustees have agreed that “If 0.1% is less than £950 it will be increased to that amount.

Two Trustees of this Charity, Margaret Panter and Margaret Jones are nominated as trustees to the "John Palmer" Charity.

4. ADMINISTRATION OF THE TRUSTEE BODY

The Charity is administered by 17 Trustees.

Four are “appointed” by Worcester City Council; four are “nominated” by major beneficiary "stakeholder" charities, chosen in a ballot of the Trustees every 3 years; and nine “independent Trustees” are “appointed” by the Independent Trustees and the Worcester City Council Appointed Trustees, being “persons who through residence, occupation, employment or otherwise, have special knowledge of Worcester City”.

Upon appointment, new Trustees receive an introductory tour of the Charity's office along with advice and information about the organisation. They are provided with copies of the Constitution and Rules, the Annual Report and Accounts, a History of the Charity, and a reference to the Charity Commission's publication CC3 “the Essential Trustee,” which includes a trustee job description.

The 17 Trustees of the Charity during The Period were as follows:

Paul Griffith I , (Chairman), Geraint Thomas I (Vice Chairman), Roger Berry I , Tracy Biggs N , Richard Boorn N , Kirsteen Borthwick Ch (appointed 26/02/25), Helen Davis I (appointed 01/04/25), Paul Denham I , Jill Desayrah N , Graham Hughes I , Margaret Jones I , Roger Knight N , Jonathan Newey I (until 31/03/25), Sue Osborne Ch , Margaret Panter Ch , Ron Rust I , Martyn Saunders I (until 31/03/25), Clive Skidmore Ch (appointed 27/03/24), Alan Tidy I (appointed 01/04/25).

"I" nine independent co-opted by the Board for 5 years;

"N" four nominated by the City Council for 4 years;

"Ch" four nominated to the Trustees by the 4 chosen major beneficiary "stakeholder" charities for 3 years i.e. Armchair, (Furniture Re-Cycling) Citizens Advice Worcester, MAGGS Day Centre for the Homeless and Worcester Heritage & Amenity Trust (Tudor House Museum). The Trustees will appoint the nominees if considered suitable with regard to the skills, knowledge and experience needed for the effective administration of the CIO.

5. COMPOSITION OF THE TRUSTEE BODY AND THE ADMINISTRATION

The Trustees include people with experience in e.g. Social Services, Business Management, Child Care, Adult Care, Education, Housing, the Magistracy, Commerce, Finance, Planning, the Law, Property and Social Security. The Board of Trustees meet monthly, except in August and December, oversees the policy making of the Charity, scrutinises payments and bank balances, monitors the finances and reviews and approves the Grants Sub-Committee's recommendations.

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The Board carries out annual inspections of the property owned on a rotational basis - there are two whole day inspections a year, with each property being visited once in every two years. The properties are all vested in the CIO as “Custodian” Charity.

A Grants Sub-Committee - meets monthly, to deal with the individual applications for grants that require detailed consideration. The Chairman and Vice Chairman have joint delegated authority to make grants up to £1,000 in an emergency (£2,000 over Christmas).

6. PROFESSIONAL ADVISERS AND STAFF OF THE CHARITY

The Charity retains, Chartered Surveyors GJS Dillon, Chartered Surveyors ARC Ltd., Architects Lett & Sweetland, Auditors Kendall Wadley LLP, and Unity Trust Plc as Bankers. (Full details of the Professional Advisers are on page 27).

The Trustees wish to place on record their thanks to all these officials for their work in helping the Charity to deliver a worthwhile service to Worcester’s needy citizens. Special thanks are due to the staff for their hard work and commitment.

Pictured: Top left to right Carlo Barentsen (Accountant), Adrian Robinson (Property Business Manager), Bottom left to right Maggie Inglis (Office Manager), Margaret Green and Sarah Bradnick (Administrators) who together run the Charity office on a day-to-day basis.

7. THE "MISSION" STATEMENT, THE PUBLIC BENEFIT REQUIREMENT AND EQUAL OPPORTUNITIES

Public Benefit

The Trustees' “Mission” is to seek to achieve the public benefit objects set out in the Trust Deed, in compliance with the Charity Commission's guidance, and in the most efficient and effective way. The Charity attempts to earn as much as reasonably possible from its investments, and spends its income (after the expense of administration) on the Charity’s Public Benefit Objects.

Equal Opportunities

The Trustees do not discriminate against anyone in respect of employment and the provision of services because of age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex or sexual orientation.

Permitted Discrimination

The Equality Act 2010 allows a charity to limit its benefits to people who share what are called "protected characteristics" i.e. those who are entitled to be considered in respect of granting the benefits the Charity offers. In other words:

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8. A SUMMARY OF WHAT THE CHARITY ACHIEVED IN 2025

A. Major Events and Decisions by the Trustees

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B. Annual Revenue Income and Expenditure

Revenue income of £1,433,396 was received, mainly rent from properties (2024 £1,431,303). Expenditure was £1,402,231 (2024 £1,600,448).

C. Summary of Property Owned

D. Rent Reviews and Accommodation Charges

Sheltered Housing accommodation charges were reviewed and scheduled rent reviews were completed.

E The Grants Sub-Committee met 12 times in 2025

Education, Relief in Need, Hardship or Distress Grants

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9. ALMSHOUSES - AFFORDABLE HOUSING FOR THE RETIRED AND THE NON-RETIRED HOMELESS

The Charity owns two complexes of Retirement Almshouses:

The former Berkeley’s Chaplain’s house became the Charity’s administrative offices in 2013 and the former Nurse’s house became the resident warden's house at the same time. The former Chapel was modernised and converted to a community/meeting room in 1997.

Applicants for sheltered housing are eligible for consideration for an Almshouse flat if they have lived in Worcester for more than 12 months, are of retirement age, receive a low income and are entitled to housing benefit. Special consideration will be given to applicants if their present accommodation is inadequate or if they feel the strong need of a resident on-site Warden for security, advice and support.

The two lovely sites with shared gardens are both in the heart of Worcester and within walking distance of the shops and amenities.

On admission, residents should be capable of living independently and should not have substantial savings or a property that could be sold, producing sufficient funds to buy somewhere suitable.

The residents' accommodation charges were reviewed in The Period. All bar one of the residents received Housing Benefit. In The Period one resident left and one was appointed.

The two Resident Part-time Wardens Julie Clayton and Darren Dodd provide a very high standard of first-line support and caretaking as a joint service to the two sites. Julie is based at Nash’s and Wyatt's and Darren and his family live at Berkeley's. Together they provide ongoing support and care to all the 32 residents ensuring they feel safe and valued.

The Charity organises regular activities and events such as days out and a festive Christmas lunch to foster a sense of community and connection. These initiatives help us deliver a high-level of care and support enhancing the quality of life for all our residents.

The Charity does not have a waiting list. If a vacancy arises the accommodation will be advertised in the local press under accommodation available.

Berkeley Court, Foregate Street - 7 flats Nash's and Wyatt's Court, New Street - 25 flats

General repairs and maintenance of the Sheltered Housing have been carried out throughout The Period. Testing and servicing of all gas appliances is carried out annually.

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The Trustees believed in 2013 the single homeless under retirement age were by far the neediest group in Worcester, as there is no statutory priority for local authorities to rehouse the single unintentionally homeless unless they are also assessed as vulnerable.

2013 - 9 Sansome Place 6 studio flats

2017 - 15 St. Swithin’s Street 4 bedroom HMO over the shop

2016 - 21 The Cross 3 one bedroom flats over the shops

2014 - 16/17 St. Swithin’s Street 6 one bedroom flats over the shops

2017 - 19 Foregate Street 5 one bedroom flats, 1 studio flat & a shop/office

2017 - 59-60 The Tything 2 one bedroom flats over the shop

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2018 - Sir Thomas White Court conversion of offices and car park to 10 new one bedroom flats

2019 - 8 Sansome Place 2 one bedroom flats

2020/21 - “Stillingfleet House” , 3-4 Shaw Street, office conversion to 25 one bedroom flats

2022/23 - Inglethorpe Court , office conversion to 4 one bedroom flats

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10. GRANTS AWARDED IN 2025 BY THE CHARITY

RELIEF IN NEED AND EDUCATIONAL GRANTS

Grants determined by Constitution Grants determined by Constitution £
Palmer’s Educational Foundation 1,189*
0.1% of the Charity’s “clear” income or £950 whichever is the greater
"REVENUE" GRANTS TO ORGANISATIONS £
Armchair furniture recycling Running Costs, free furniture - means tested 14,249
Citizens Advice Running Costs, advice, support, legal aid etc. 194,769~
Dancefest Dance lessons, (social housing areas) 18,491*
Maggs Day Centre Running Costs, Worcester day centre, clothing project 26,408
Worcester Community Trust Youth work schemes (social housing areas) 34,268*#
WHAT Tudor House Museum Curator and Learning Ofcer salaries 42,944*
Total £332,318

~ Citizens Advice core support costs £150,582 and Smartlets Welfare Grant £44,187

INDIVIDUAL GRANTS £
Education grants
Relief in Need, Carpet Grants and others under £1,000 39,862
Relief in Need Grants for white goods under £1,000 619
Total £40,481
The Charity's Grand Total (excluding DWAS)
£372,799
£
"Homes for Ukraine" Carpet Grants 6,800
DWAS Relief in Need grants under £1,000 for white goods (net) 81,049
The grants included educational grants and the following essential household and personal
items:Carpets, Washing Machines, Cookers, Fridges, Fridge Freezers, Clothing Grants,
Removal Costs, DRO costs, Fencing and “other household items”
Grand Total £460,648

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WORCESTER MUNICIPAL CHARITIES (CIO) GRANTS POLICY

11. Grants for “Relief in Need” and to “Promote Education for Individuals in Need”

General Policies & Practices - Advice for Support Workers & Applicants:

It is the Charity's policy not to make a grant if adequate funds are available from:

1. Family/Friends

2. DWAS for white goods - www.worcester.gov.uk/discretionary-welfare-assistance-scheme

3. DWP for a Budgeting Loan - www.gov.uk/budgeting-help-benefits/how-to-claim

4. Health Authority for disability aids - www.hacw.nhs.uk/services/service/wheelchair-posture-mobility-service-93

5. County Council for Adult Social Care and Children's Social Care - https://www.worcestershire.gov.uk/council-services

6. Student Finance England for promotion of education - www.gov.uk/apply-for-student-finance/how

The application form must be endorsed to show that all 6 options have been considered and with what result. Failure to do so will mean the application will be deferred to enable these enquiries to be made.

The Grants Committee will consider the income and expenditure sheets of each applicant and their ability to meet their own needs, with budgetary assistance from Citizens Advice Worcester if required.

Applications may be turned down if the applicant has not demonstrated financial hardship, or is seriously mismanaging his/her income by spending excess amounts on luxury items like “Sky TV” rather than on necessities like food and clothes. Individual budgetary advice may be provided by the Citizens Advice Money Adviser in such cases.

To consider, as a condition of any grant to an individual, the possibility of debt advice, usually with help from Citizens Advice Worcester.

Not to commit the Charity to repeat a grant to an individual or organisation.

The Trustees reserve their complete discretion in all cases.

GRANTS FOR RELIEF IN FINANCIAL NEED

Can be considered for people living in Worcester City only.

All applications from an individual for a relief in need grant must be endorsed by a support worker from the statutory or voluntary bodies in Worcester, using the forms available on the Charity’s website. The support workers are relied upon to provide to applicants such additional help that the applicant may require e.g. in respect of their vulnerability and other needs.

One-off grants can be considered for “essential” items like cookers, fridges, fridge freezers, washing machines, clothes airers, food, clothes, fuel bills, carpeting, a television, a vacuum cleaner, other household items; in exceptional circumstances help may be considered for holidays or holiday activities.

The Trustees judge as “essential” those items that people generally nowadays feel they cannot manage without, and that form part of an expected way of life in today’s society. The Charity is a last resort and is unable to help if there is statutory assistance available.

GRANTS TO PROMOTE EDUCATION

Can be considered for people in need, of any age, living in Worcester City, the Parishes of Powick, Bransford and Rushwick, and the Ancient Parish of Leigh.

Applicants for educational grants do not need a support worker but references/reports may be requested from the institution concerned.

Applications may be considered from people of any age who live outside these areas but who have attended school in the City for at least two years.

The Trustees will not normally consider applications from persons attending educational establishments in the City who, prior to enrolling, lived outside these areas for two years or more, and/or who still live outside them.

The Trustees will not normally consider applications from persons attending educational establishments with national catchment areas e.g. the New College (for the blind) and Worcester University, unless they were resident in the area of benefit for at least two years, or attended school in the area of benefit for at least two years, prior to enrolling at the relevant institution.

Applications in respect of fee-paying institutions, for travel abroad, and awards beyond 1st Degree level are normally excluded.

Assistance with school uniform grants is not provided in the light of the Government’s Pupil Premium payments to schools for such purposes. Any requests for non-distinctive clothing may be considered for a “relief in need” grant based on family income and expenditure.

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WORCESTER MUNICIPAL CHARITIES (CIO)

12. A SOCIAL INVESTMENT PROGRAMME – 1996 Onwards

Free use of the Charity’s property facilities in 2025

Since 1996 the Charity has been sponsoring subsidised office accommodation for like-minded City charities who are helping the poor or providing free education or educational facilities in areas of social need and at Tudor House Museum.

The Charities SORP (FRS 102) requires that facilities and services donated to a charity for its own use which it would otherwise have purchased must be included in the Charity's accounts when received, provided the value can be measured reliably. Value to the beneficiary Charity is the amount that the Charity would pay on the open market for an alternative item that would provide a benefit to the Charity equivalent to the donated item. Worcester Municipal Charities (CIO), as the donors of these "facilities" to the charities concerned, have estimated the rental values based on 8% of their capital value as contained in the Quinquennial Valuation of 2025 as follows, with the exception of leasehold properties which have been estimated individually based on the advice from their Chartered Surveyors, and any actual bills paid in “The Period.” They will be revalued in 2030.

PROPERTY - LET ON A PEPPERCORN
No.
Estimated Capital & Rental Value p.a.
Capital
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1996- 6B Checketts Lane Trading Estate, Leasehold.
£10,000
Let to:Armchair Furniture Recycling. 50 years’ lease
bought from this Charity by Armchair for a premium.

41
2006-Old Glove Factory13 Lowesmoor, Freehold
£850,000
Let to:Citizens Advice and Maggs Day Centre for
the Homeless.
44
2008-Tudor House Museum, Leasehold 125 yrs
£100,000
Lease bought from the City Council for £100,000
Let to:Worcester Heritage & Amenity Trust.
(Education)
43
2009-St. Albans Chapel, Deansway,
£50,000
Leasehold 150 yrs
Leased from the Diocese for a Premium of £47,500
Let to:Maggs Day Centre for the Homeless
46
2012-Medway Community Centre,
£70,000
Leasehold 50 yrs. Gifted free by the City Council
*Tenancy at Willto:The Lighthouse Pre-School
Nursery (Education)
53
2017-Maggs Clothing Shop59/60 the Tything,
£250,000
Freehold. Ofces, 2 homeless fats top foor.
Purchased 2016 £326,000.
Let to:Maggs Day Centre for the Homeless
Total facilities in kind provided in this period:		 Rental
Value
Nil
£50,000
£8,000
£4,000
£6,000
£24,000
£91,600

* The Charity has a constitutional duty to spend 12% of its net income on education.

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THE CHARITY PROVIDES RENT FREE PROPERTIES FOR OTHER CHARITIES

2009 - Maggs Day Centre for the Homeless St Alban’s Chapel, Grade 2 Listed Building and Ancient Monument provided rent free by the Charity

2016 - 59-60 The Tything purchased by the Charity for Maggs Clothing Project, Maggs Offices and 2 Social Housing Flats

2006 - The Old Glove Factory , Grade II listed building. The two shops at the front are occupied commercially. The Charity provides the rest of the property to Citizens Advice and Maggs Day Centre for the homeless rent free

1996 - 6B Checketts Lane Trading Estate Armchair Furniture Recycling

2025 - Lighthouse Family Centre for their pre-school educational programme

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In 2008 the Charity paid £100,000 from its Education Trust Funds for the 125 years’ lease of Tudor House from the City, for Worcester Heritage and Amenity Trust to run as a free-entry Museum. The Charity immediately sub-let Tudor House to WHAT for a “peppercorn”. An annual grant is made to pay for the curatorial staff who appoint and supervise the large voluntary workforce.

In 2023 discussions took place with the City Council who agreed to extend the lease to 999 years without charge.

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13. THE CHARITY’S STRATEGIC OBJECTIVES, INVESTMENT POLICY & REVIEWS

Put simply, these are to fulfil the registered charitable objectives for people in need, by using income from its annual funds, investments and properties to provide the income to the “best advantage”, inter alia, by ensuring the process involves “value for money” principles.

The Charitable Objectives

Raising the Money to Spend on the Charitable Objectives

The purpose of the Charity’s financial investment is to yield the best return possible within the level of risk considered to be acceptable. There is a legal requirement to review investments from time to time and to diversify investments.

The Charity’s annual income is composed almost entirely of rents from its commercial properties , - comprising shops, offices and warehouses, and from its two types of “affordable social housing” almshouses for retired people (32 units) and almshouses for the working age homeless (68 units).

Strategic Changes of Investment from 1985 Onwards

In the 1980s - The Charity’s endowed property comprised principally farms, farmhouses, cottages, and farmland, across Herefordshire and Worcestershire, together with a small amount of commercial property in Worcester.

The first major change was to charge a fair rent available from Social Security for the 32 retirement almshouse residents who were living rent-free. This produced additional income of £100,000+ a year.

Following an investment policy review in the late 1980s, and after a meeting with the Charity Commission in Liverpool, the Trustees began a wholesale, gradual transition from agricultural to commercial investments, including the gradual sale of all the agricultural holdings. This went smoothly with most farms being purchased by the tenants, many of the families having been in occupation for more than 100 years.

Between 1990 - 2012 building on that initial success, the Charity continued selling the farms, and also disposed of all its stock-market holdings and reinvested that money also in commercial property, with similarly improved returns. These two major policy changes effectively quadrupled the Charity’s rental income and proved wholly successful for about 25 years, allowing more money to be spent on the beneficiaries, and providing grants, sponsorship and rent-free buildings for like-minded Worcester charities helping the most needy.

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2012 onwards, as the High Street recession began to seriously affect the viability of the commercial shops and the larger offices, the Trustees began reviewing their investment policies and looking at alternative forms of investments given the low interest rates which were still falling.

The Trustees’ review concluded that the reinvestment policies that had been pursued following the 1980s review, were effective, and were the best that could be devised at the time for the Charity and its beneficiaries, both short and long term. However, the buoyant days of the High Street shops and city centre offices were clearly on the wane; the bubble was bursting and new sustainable strategies were becoming urgent. As a result, when offices became vacant they were either sold, or converted into flats for the homeless. Flats were also created over the Charity’s own shops where possible, with reduced rents for the shopkeepers below helping sustain their financial viability.

“Programme Related Investment”

In 2013 “uses the Trustees adopted the Charity Commission's official definition for when a charity assets to directly further the charity’s aims, whilst also generating a financial return”.

The money to invest was raised from the sales below, and from the grants from Homes England which speeded up the whole process enormously, and also enabled the Charity to continue financial support and provide rent free offices to four other Worcester charities who were helping those in greatest need in Worcester.

In 2018 the Charity reviewed its Investment Policies and Procedures, and reported its findings to the Board at its January 2019 meeting. The Report demonstrated that the reinvestment strategy was both sustainable and diverse and, in particular, replaced the lost income of £150,000 from the 2018 vacation of the Shaw Street offices with income from the 25 new affordable flats for the homeless. The alternative option to sell the building for development would have realised only about £500,000 to invest, which represented a huge potential loss to the Charity and its beneficiaries. The Trustees believe they have made the best of a bad job, brought about through circumstances entirely beyond their control.

Investment Returns Analysed

Between 1985 - 2018 the Charity recorded its income carefully, and the headline results are that the earned income from investments rose by an average compound increase of 6.35% every year compared to a UK average of 3.54%. A major factor in this very favourable financial result has been the longstanding policy decision to accumulate unspent contingency money of up to 10% on property investment each year, by saving it up gradually until more property can be afforded without borrowing. However this policy has been put on hold following the departure of the Home Office as tenants of Shaw Street, with a subsequent loss of rental income of £150,000 annually. This required funding of the refurbishment of 3-4 Shaw Street into 25 flats at a cost of £2.2 Million, towards which Homes England contributed £1 Million. However within two years the new rents had passed the previous level.

The £500,000 loan from the Bank however remained in place and has since become a burden as major property repairs to older buildings have monopolised the Charity’s expenditure. Steps are now being taken to pay it off within the remaining term of 27 months.

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Routine Almshouse Maintenance

Between 1899 and 1985 the Charity “lost” 32 of its original 64 retirement almshouses. This was due entirely to a lack of routine maintenance and modernisation which was caused mainly by a policy decision not to charge rent, even when Social Security/Income Support first became available through the Beveridge reforms in the late 1940s. Almshouse properties decayed and were sold for development or modernisation, or were demolished as they became uninhabitable, and the sites were sold.

In 2018/19 the Charity monitored the cost of maintaining the 27 affordable homelessness almshouses then being let, and it produced a figure of £735 plus a 15% management fee of £750 for SmartLets, part of Citizens Advice, who support a “difficult to manage” group of residents on licences to occupy. A figure of £1,000 was applied to all 39 units in the 2019 budget which proved sufficient.

Based on advice from the Almshouse Association, the routine maintenance figures for the 2025 budget were set at £1,718 for each of the 32 retirement units, and £1,374 for each of the 68 homelessness ones which have proved inadequate.

Cost comparisons with other housing associations are problematic without detailed reports on the age and present state of repair of their entire housing stocks.

Commercial Properties

and The Returns on the “High Street” Commercial Properties of shops and offices are static, do present a very real challenge. Where street access is possible, turning the upstairs into flats for the homeless has proved successful, but it’s hard to find another economic way forward. The two charity shops are no more and have been let commercially in 2025. Only those High Street shops like hairdressers, beauty salons, nail bars, shoe repairs and food shops are surviving, as none of them have to compete with on-line sales. However, the butcher’s shop in St. Swithins Street is easily the best and most popular in town, and looks set to continue its success.

Apart from re-lets, the commercial rent reviews due in 2025 were largely settled on a stand-still rent basis.

The retirement and homelessness almshouses were subject to Government funded CPI + 1%.

Most of the commercial shops are in a single street, the lower part of which has been dubbed “Charity Alley”. However it does have a wonderful footfall, as it provides the main pedestrian route to “The Shambles” and the new Asda further down. Like other landlords in a similar position, the Charity can only wait and see what happens, and in the meantime, when the opportunity arises, and it's feasible, diversify into residential property for the homeless.

The Board regularly reviews its investment strategy. It was agreed that in future the preferred provider would be used for all work under £500,000 unless they were unavailable, but their tenders would be checked regularly.

The Charity also has in place preferred providers for water, electricity, general maintenance and carpentry.

Future Investment Plans

There is no real shortage of retirement facilities for the elderly in Worcester.

Commercial high street shops and offices are on standstill rents. Any new capital, if it can be matched by Homes England grants, will be directed towards affordable flats for the single homeless.

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Homes England - Value for Money Metrics

Each year the Charity uses a range of data to measure VFM progress. The results help influence investment decisions and provide regulators and other stakeholders with information on the progress of the Charity.

Metric 2025 2024 Commentary
Reinvestment
percentage		 0% 0% This is the cost of development
and/or acquisition of new or existing
housing properties as a percentage
of the value of the ones already
owned.
Percentage of new
supply delivered		 0% 0% This is the number of social housing
units developed or newly built
during the year as a percentage of
the number of social housing units
held at the year end.
Social housing cost
per unit		 £7,053 £6,317 This is the total cost of ownership
and management of social housing
units divided by the number of units
owned and/or managed.
Operating margin as
a percentage (social
housing)		 5.65% 11.26% The operating margin on social
housing activity only i.e. total social
housing income minus total social
housing expenditure, expressed as
a percentage of total income.
Overall operating
margin		 2.17% -11.82% Overall operating margin i.e. total
income minus total expenditure of
the organisation, expressed as a
percentage of total overall income.
Return on capital
employed (ROCE)
as a percentage		 0.23% -1.16% This is the overall operating margin
divided by (total assets minus
current liabilities).

20

14 . THE COST OF ADMINISTRATION & GOVERNANCE

The more a charity earns, and the less it spends on administration, the more there is available for direct charitable expenditure and grants. The Trustees therefore remain anxious to ensure that there is no unnecessary waste on administration.

Every effort is made to keep the cost of administration to a minimum. The Trustees themselves do not claim expenses. However, with 22 Trustee meetings, two property inspections a year and the inevitably high cost of servicing a number of individual applications for assistance, there is an inbuilt unavoidable administration cost. In the Period the Charity spent £7,632 (0.53%) (2024 £7,641 (0.53%) of gross income on Governance and £122,126 (8.52%) (2024 £127,553 (8.91%) of gross income on Administration.

15. QUINQUENNIAL PROPERTY VALUATIONS

In 2010/2015/2020/2025 the Trustees commissioned Quinquennial Property Valuations. The Commercial Properties were valued by Guise Jones Sawyer, and their successors GJS Dillon. The “Functional Properties”, occupied by the Charity and others with similar objects, were also re-valued based on vacant possession. The results were 2010 £13,776,750 , 2015 £13,880,000 , and 2020 £14,532,000 . and 2025 £15,350,000 .

16. PROPERTY INSURANCES

In 2010 the Trustees commissioned a complete revaluation of property insurance including accurate rebuilding costs and loss of rent calculations. The insurers are still Ecclesiastical Insurance Office Plc, arranged through Hazleton Mountford Ltd.

17. EXTRAORDINARY REPAIRS COMMERCIAL PROPERTY & ALMSHOUSES IN 2025

The Charity owns and leases a considerable number of ancient properties with very high maintenance costs which has affected our ability to make grants to like-minded charities. 2025 has been a very challenging year with unusually expensive repairs costing in total £155,172. These included continuing the major repairs to the 18th Century Berkeley’s Almshouses whose rooves need replacing about once every hundred years or so. In 2022 the South Wing roof was repaired and much admired and in 2025 Adrian Robinson our Property Manager moved the workforce to the North Wing to complete the exercise. Progress ceased abruptly however following an instruction from a newly appointed Senior Planning Officer who said the original planner’s authorisation to treat the work as a “repair” was incorrect and he needed re-training. She instructed that all the subsequent work required planning consent regardless. Everything had to be halted whilst planning consent was requested and granted. Shaw Street was just one lane for several months much to the annoyance of shopkeepers and motorists alike. The work on these outstanding buildings has taken from 2023 to 2026 to complete with 2023 - 2025 already costing £221,160.

Having to repeat virtually everything already done on the North Wing proved very costly for the Charity and a claim for financial compensation for maladministration by the Council is being prepared and will be submitted in early 2026.

21

18. RESERVES POLICY AND FINANCIAL RISK ASSESSMENTS

In 2010 the Trustees reconsidered their reserves policies and decided to set aside reserves on an “ad hoc” basis when required e.g. for a capital programme, and extraordinary repairs. Routine maintenance comes out of the annual budget. Each year until 2018 a contingency sum up to 10% was set aside by the Charity in its annual revenue budget for unforeseen expenditure. Any unspent contingency money was transferred to the reserves to purchase new investment properties when sufficient was available, to help the Charity at least keep pace with inflation.

Until 2018 this process brought the Charity compound inflationary increases of 6.35% p.a. compared to the national average of 3.54%. The practice ceased in 2017 due to the need to spend £2.2 Million on creating 25 flats in 3/4 Shaw Street when it was also agreed to borrow £500,000 to help the cash flow until the new rents arrived. In 2021 the arrival of the funds from the sale of the field at Welland was a timely and welcome addition.

However, since 2021-25 the Charity’s increases in annual income has failed significantly to keep pace with the high inflation national increases. No new property has been purchased due to insufficient capital funds available, which has resulted from the huge outgoings on refurbishing Shaw Street for residential use, the large capital payments for repairs to Castle House, the Old Glove Factory, 59/60 the Tything, 15, 16, 17 St Swithin's Street (pictured) and the retirement almshouses at Berkeley’s and Nash’s & Wyatt's in New Street.

In 2022 the Government capped social housing rent increases but the actual increases allowed were acceptable and compared not unfavourably with local inflation.

The total funds of the Charity as at the year-end amounted to £15,377,836 (2024 £14,460,209) consisting of endowment funds of £13,790,943 (2024 12,821,025), restricted funds of £8,976 (2024 £12,838 and designated funds, which are funds set aside by the Trustees for future projects amounted to £44,983 (2024 £251,609), leaving unrestricted funds amounting to £1,532,934 (2024 £1,374,737).

Free reserves after making allowances for tangible fixed assets and investment properties amounted to £354,549 (2024 £224,104). The Trustees' reserves policy is to maintain free reserves equivalent to approximately three months' expenditure, ensuring that sufficient funds are available to meet ongoing commitments and unforeseen circumstances.

“New Risks” form the first agenda item for all Board meetings and we confirm that the major risks have been reviewed and systems or procedures have been established to manage those risks.

19. STAFF REMUNERATION

The Trustees review the pay of all paid staff and self-employed staff at the January meeting of the Board each year and generally, subject to affordability, increase salaries of both groups after considering UK CPIH inflation. In 2025 the staff and self-employed staff were awarded an increase of 1.7%

20. SERIOUS INCIDENTS

The Trustees confirm that in The Period ended 31st December 2025 there were no “serious incidents” to report.

22

21. THE CHARITY'S PROPERTY PORTFOLIO FOR THE PERIOD

PROPERTY ACQUIRED ���������� ���������������� �������� Shop 1560 St Thomas's Day Timpson Ltd

ADDRESS


�������
1.** ������������������ Shop 1560 St Thomas's Day Timpson Ltd
2.** ������������������ Shop 1560 St Thomas's Day Miss Sarah Johnson
3. ��������������������������� ���������������� ���� ������������� ����������������������
3A. ������������������� 4 Social Housing Units 1560 St Thomas's Day Citizens Advice 4 HMO Residents
4. ��������� Bank 1618 Inglethorpe's National Westminster
5. ��������������������������� Shop 1618 Inglethorpe's Taylor Shop Ltd (Morteza Kazemi
6. ��������������������������� Shop 1618 Inglethorpe's Worcester Nail & Spa (A&H Ngu
6A. ������������������������������ 6 Social Housing Units 1618 Inglethorpe's Citizens Advice 6 Residents
7. ������������������� 25 Social Housing Units 1661 Nash's 25 Residents
8. ��������������������� 1 Flat 1661 Nash's Warden's Flat
9. ��������������������� Community Room 1661 Nash's Residents
10.* ������������� 7 Social Housing Units 1692 Berkeley's 7 Residents
11.* ������������������� ��������������� ���� ���������� ����������������������
12.* ���������������� Community Room 1692 Berkeley's Residents & charities
13.* �������������������������� Warden's House 1692 Berkeley's Warden's House
14.* ����������������������� Electricity sub-station 1692 Berkeley's Western Power Distribution
17. �����������������1st, 2nd & 3rd Shop & Flat 1990 WMEF Mr Spyros Tsangarakis
18.** ������������� 25 Social Housing Units 1994 WCMC/WMEF Citizens Advice 25 Residents
19.# ������������������������ ����� ���� ���� ���������
20.# ������������������������ Furniture Store 1996 WCMC Armchair
21. ������������������������ ������������� ���� ���� ���������
22. ������������������ ������������ ���� ���� ����������������������������
27. ������������������� 10 Social Housing Units 1997 WCMC Citizens Advice 10 Residents
28.# ������������������� 4 Social Housing Units 2000 WCMC Citizens Advice 4 Residents
32. ������������������ ����������������������� ���� ���� ����������������
33. ������������������ Wheelchair Clinic & W'shops 2002 WCMC Worcs. Health & Care NHS Trust
37.** ������������� 2 Social Housing Units 2002 WCMC
Citizens Advice 2 Residents
40.** ���������������(13 Lowesmoor) Expertan 2006 WCMC J Fiedorowicz & K Kumorowski
41.** ���������������(13A, B) ����� ���� ���� ����������������������������
42.** ���������������(15 Lowesmoor) Shop 2006 WCMC Sorin Pop
43.**AM# ����������������� Day Centre for the homeless 2009 WCMC Maggs Day Centre
44.**s# ���������������������� Heritage Centre /Museum 2008 WMEF WHAT
46.# ������������������������� Nursery, Family Centre 2012 WMEF Light House Family Centre
48.** ������������� 6 Social Housing Units 2013 WCMC Citizens Advice 6 Residents
51.**# ���������� 3 Social Housing Units 2014 WCMC Citizens Advice 3 Residents
52.** ���������������� ���� ���� ���� ������������������������
52A** ���������������� 6 Social Housing Units 2015 WCMC Citizens Advice 6 Residents
53 ��������������� ����������������� ���� �������� ��������������
53A ��������������� 2 Social Housing Units 2016 WMC (CIO) Citizens Advice 2 Residents

Citizens Advice 4 HMO Residents National Westminster Taylor Shop Ltd (Morteza Kazemi) Worcester Nail & Spa (A&H Nguyen) Citizens Advice 6 Residents 25 Residents Warden's Flat Residents

���������������������������������

����������������������������������������������[�] �������������������������������������������������������� - All other properties are freehold

23

22. CONCLUSION AND COMMENT

b) A Short History of the Charity and the Chapel is published. Please visit the website.

24

Page 12 provides details of the grants made to organisations for The Period.

Page 14 sets out the "Facility Gifts in Kind" to a number of charities for The Period.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

25

23. LEGISLATION, POLICIES, PROCEDURES AND PRACTICES COMPLIANCE

The Charity confirms it has complied/is complying with the following:

GOVERNANCE

The Registered Constitution and Rules as amended Risks reviewed monthly Charity Commission’s “Public Benefit” Requirements The Chairman’s Role and Job Description Trustees’ Induction Trustees’ Code of Conduct Trustees’ Conflict of interest policy Trustees’ Declaration of Interests Trustees’ Expenses’ reported Trustees’ Register of Interests Equal Opportunities Policy Data Protection Act (registered) Environmental Policy Complaints Policy and Procedure Bullying and Harassment Policy Safeguarding Policy Health and Safety Policy

SOCIAL HOUSING - RETIREMENT & AFFORDABLE HOUSING FOR THE HOMELESS

FRS 102 applied to Annual Accounts Registered Social Housing Provider: 4855 Value for Money Metrics Retirement Almshouses Housing Ombudsman Registration Worcester Citizens Advice Landlord and Agent “Smartlets” Agreement. Rent Arrears Protocol (in progress)

FINANCES

Accounts Audited externally annually Annual Budget - Revenue & Capital separately Register of Assets Financial Controls including Value for Money & Metrics Financial Forecast Review Insurance - Take out appropriate policies annually

REVIEWS

A review of all policies, procedures, practices and compliance is underway

26

24. PRINCIPAL ADVISERS TO THE CHARITY

SOLICITORS

Under review

BANKERS

Unity Trust Bank Plc Nine Brindley Place Birmingham, B1 2HB Tel. 0121 631 2743 ARCHITECTS Lett + Sweetland Architects PO Box 1008 Worcester WR1 9EJ Tel. 01905 353768 COMMERCIAL VALUERS GJS Dillon, Chartered Surveyors 7 Roman Way Business Centre Droitwich, WR9 9AJ Tel. 01905 676169 ARC Surveyors Ltd Adrian Robinson, MRICS The Cedar Office 5 Thackholme Worcester WR4 0RZ Tel. 01684 576077

AUDITORS

Kendall Wadley LLP Granta Lodge 71 Graham Road Malvern WR14 2JS Tel. 01684 892666

TRUSTEES' APPROVAL

The foregoing Report of the Trustees, pages 1 - 27, was approved and signed on behalf of the Board of Trustees together with the audited Accounts pages 28 - 58 and presented to their meeting on 24th June 2026.

Richard Boorn

RICHARD BOORN, Chairman of Trustees

Paul Griffith

PAUL GRIFFITH MBE, Trustee (Chairman 2025)

27

25. Audited Accounts

WORCESTER MUNICIPAL CHARITIES (CIO)

STATEMENT OF TRUSTEES RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2025

The Trustees 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).

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

28

WORCESTER MUNICIPAL CHARITIES (CIO)

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF WORCESTER MUNICIPAL CHARITIES (CIO)

Opinion

We have audited the financial statements of Worcester Municipal Charities (CIO) (the ‘charity’) for the year ended 31 December 2025 which comprise the statement of financial activities, the balance sheet, statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 charity 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 charity’s ability to continue as a going concern for a period of at least twelve 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

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

29

WORCESTER MUNICIPAL CHARITIES (CIO)

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF WORCESTER MUNICIPAL CHARITIES (CIO)

Responsibilities of Trustees

As explained more fully in the statement of Trustees responsibilities, 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 charity’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 cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities including fraud

Audit response to risks identfiied

The information obtained through the assessment to risk procedures is reviewed and the following work undertaken:

It should be noted that Auditing standards limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

30

WORCESTER MUNICIPAL CHARITIES (CIO)

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF WORCESTER MUNICIPAL CHARITIES (CIO)

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Sarah Morley BA (Hons) ACA (Senior Statutory Auditor) for and on behalf of Kendall Wadley LLP

Chartered Accountants Statutory Auditor

Sarah Morley

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

Granta Lodge 71 Graham Road Malvern Worcestershire WR14 2JS

Date: 24 June 2026

Kendall Wadley LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

31

WORCESTER MUNICIPAL CHARITIES (CIO)

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2025

Current financial year
Unrestricted Unrestricted
funds
funds
general
designated
2025
2025
Notes
£
£
Income and endowments from:
Donations and legacies
3
413
-
Charitable activities
4
1,279,415
-
Investments
5
9,000
-
Other income
6
16,716
4,000
Total income
1,305,544
4,000
Expenditure on:
Raising funds
7
404
-
Charitable activities
Grant making
8
361,541
-
Sheltered housing
8
283,357
136,096
Social housing
8
285,826
-
Commercial property
8
187,667
19,626
1,118,391
155,722
Total expenditure
1,118,795
155,722
Net income/
(expenditure)
186,749
(151,722)
Net gains/(losses) on
investments
14
48,736
-
Net income/
(expenditure) before
transfers
235,485
(151,722)
Gross transfers between
funds
15
54,904
(54,904)
Net income/(expenditure) for
the year
290,389
(206,626)
Other recognised gains and losses
Revaluation of tangible
fixed assets
(132,192)
-
Net movement in funds
158,197
(206,626)
Fund balances at 1
January 2025
1,374,737
251,609
Fund balances at 31
December 2025
1,532,934
44,983		 Restricted Endowment
funds
funds
2025
2025
£
£
123,852
-
-
-
-
-
-
-
123,852
-
-
-
127,714
-
-
-
-
-
-
-
127,714
-
127,714
-
(3,862)
-
-
(747,000)
(3,862)
(747,000)
-
-
(3,862)
(747,000)
-
1,716,918
(3,862)
969,918
12,838
12,821,025
8,976
13,790,943		 Total
2025
£
124,265
1,279,415
9,000
20,716
1,433,396
404
489,255
419,453
285,826
207,293
1,401,827
1,402,231
31,165
(698,264)
(667,099)
-
(667,099)
1,584,726
917,627
14,460,209
15,377,836		 Total
2024
£
138,629
1,212,651
14,083
65,940
1,431,303
-
561,043
343,547
288,198
407,660
1,600,448
1,600,448
(169,145)
1,202
(167,943)
-
(167,943)
(23,639)
(191,582)
14,651,791
14,460,209

32

WORCESTER MUNICIPAL CHARITIES (CIO)

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

Prior financial year
Unrestricted Unrestricted
funds
funds
general
designated
2024
2024
Notes
£
£
Income and endowments from:
Donations and legacies
3
2,081
-
Charitable activities
4
1,212,651
-
Investments
5
14,083
-
Other income
6
26,592
39,348
Total income
1,255,407
39,348
Expenditure on:
Charitable activities
Grant making
8
437,333
-
Sheltered housing
8
343,547
-
Social housing
8
288,198
-
Commercial property
8
387,332
20,328
Total expenditure
1,456,410
20,328
Net gains/(losses) on investments
14
1,202
-
Net expenditure
(199,801)
19,020
Gross transfers between funds
15
(82,408)
82,408
Other recognised gains and losses
Revaluation of tangible fixed
assets
-
-
Net movement in funds
(282,209)
101,428
Fund balances at 1 January 2024
1,656,946
150,181
Fund balances at 31 December
2024
1,374,737
251,609		 Restricted Endowment
funds
funds
2024
2024
£
£
136,548
-
-
-
-
-
-
-
136,548
-
123,710
-
-
-
-
-
-
-
123,710
-
-
-
12,838
-
-
-
-
(23,639)
12,838
(23,639)
-
12,844,664
12,838
12,821,025		 Total
2024
£
138,629
1,212,651
14,083
65,940
1,431,303
561,043
343,547
288,198
407,660
1,600,448
1,202
(167,943)
-
(23,639)
(191,582)
14,651,791
14,460,209

33

WORCESTER MUNICIPAL CHARITIES (CIO)

BALANCE SHEET

AS AT 31 DECEMBER 2025

Notes
Fixed assets
Tangible assets
17
Investment property
18
Investments
19
Current assets
Debtors
21
Cash at bank and in hand
Creditors: amounts falling due within
one year
22
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
24
Net assets
The funds of the charity
Endowment funds
27
Restricted income funds
28
Unrestricted funds - general
Unrestricted funds - designated
29		 2025
£
£
8,905,872
6,450,000
37,232
15,393,104
212,618
439,690
652,308
(440,089)
212,219
15,605,323
(227,487)
15,377,836
13,790,943
8,976
1,532,934
44,983
1,577,917
15,377,836		 2024
£
£
6,907,694
7,564,192
33,859
14,505,745
249,440
457,050
706,490
(410,856)
295,634
14,801,379
(341,170)
14,460,209
12,821,025
12,838
1,374,737
251,609
1,626,346
14,460,209

The financial statements were approved by the Trustees on 24 June 2026

Richard Boorn .............................. Paul Griffith .................................. Richard Boorn Paul Griffith MBE

34

WORCESTER MUNICIPAL CHARITIES (CIO)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2025

Notes
Cash flows from operating activities
Cash generated from/(absorbed by)
operations
33
Investing activities
Purchase of tangible fixed assets
Purchase of investment property
Movement on cash in investments
Purchase of other investments
Proceeds from disposal of other investments
Investment income received
Net cash generated from/(used in) investing
activities
Financing activities
Repayment of bank loans
Net cash used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2025
£
(2,362)
-
225
(2,336)
2,474
9,000
(42,067)		 £
17,706
7,001
(42,067)
(17,360)
457,050
439,690		 2024
£
£
(245,352)
(25,078)
(1,361)
-
-
14,083
(12,356)
(19,749)
(19,749)
(277,457)
734,507
457,050

35

WORCESTER MUNICIPAL CHARITIES (CIO)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

1 Accounting policies

Charity information

Worcester Municipal Charities is a Charitable Incorporated Organisation (CIO) registered in England and Wales (number 1166931) and a non-profit private registered provider of social housing in the United Kingdom. The address of the registered office is Kateryn Heywood House, Berkeley Court, The Foregate, Worcester, WR1 3QG.

The nature of the charity's operations and principal activities are: helping Worcester City people in financial need by providing grants of essential items or services not provided for by the state. Assisting organisations who help Worcester City people in need. Provision of affordable social housing in Worcester City. The promotion of education to those in need from The City of Worcester, The Parishes of Powick, Bransford, Rushwick and The Ancient Parish of Leigh.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's constitution, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). Having regard to the disclosure of additional information in connection with the charitable activities undertaken in respect of housing.The charity is a Public Benefit Entity as defined by FRS 102.

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future and that there are no material uncertainties about its ability to continue. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount.

36

WORCESTER MUNICIPAL CHARITIES (CIO)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

1 Accounting policies

(Continued)

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Rental income is measured at the fair value of the consideration received or receivable and represents amounts due under tenancy agreements net of VAT where applicable.

1.5 Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is included on an accruals basis, inclusive of any VAT which cannot be recovered, and has been classified under headings that aggregate all costs related to that category.

Grants payable are payments made to third parties in the furtherance of the charitable objects of the charity. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to the performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.

1.6 Tangible fixed assets

Social housing properties are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended such as the cost of acquiring land and buildings, developments costs, interest charges on loans during the development period and expenditure on improvements.

Expenditure on improvements will only be capitalised when it results in incremental future benefits such as increasing rental income, reducing maintenance costs or resulting in a significant extension of the useful economic life of the property.

Land and other assets donated by local authorities and other government sources related to a specific development is added to cost at the fair value of the land at the time of the donation.

Freehold land is not depreciated. Housing properties under construction are not depreciated until they are in use and the useful economic lives of all tangible fixed assets are reviewed annually.

Other tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings 10% reducing balance Office equipment 20% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

37

WORCESTER MUNICIPAL CHARITIES (CIO)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

1 Accounting policies

(Continued)

1.7 Investment properties Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

It is the charity’s policy to revalue the properties every five years, with revaluation gains and losses recognised in the statement of financial activities in accordance with the SORP. The basis of valuation is for a continuing existing use or the open market value for investment purposes or disposal value for sale whichever is appropriate.

1.8 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.9 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.10 Cash and cash equivalents

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

1.11 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

38

WORCESTER MUNICIPAL CHARITIES (CIO)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.13 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

Valuation of property

As described at notes 1.6 and 1.7, the charity carries certain of the properties held at valuation. A full valuation is performed by professional surveyors every five years, at intervening reporting dates the Trustees review the portfolio and assess if there has been any material change in that valuation.

Fixed asset investments

The fair value of investments as referred to in note 1.8 is determined by reference to the valuation report prepared by the fund managers, which is based on market value at the reporting date, being the best estimate of fair value.

39

WORCESTER MUNICIPAL CHARITIES (CIO)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

3
Donations and grants received
Unrestricted
Restricted
funds
funds
general
2025
2025
£
£
Donations and gifts
413
-
Grants received
-
123,852
413
123,852		 Total
Unrestricted
Restricted
funds
funds
general
2025
2024
2024
£
£
£
413
2,081
-
123,852
-
136,548
124,265
2,081
136,548		 Total
2024
£
2,081
136,548
138,629

40

Total 2024 £ 1,188,673 23,978 1,212,651
Investment properties 2024 £ 482,845 17,909 500,754
Sheltered
Social housing		 housing 2024
2024		 £
£		 273,148
432,680		 6,069
-		 279,217
432,680
Investment
Total		 properties
2025		 2025 £
£		 495,379 1,235,987 36,498
43,428		 531,877 1,279,415
4
Rental income		 Sheltered
Social housing		 housing 2025
2025		 £
£		 Charitable rental income
275,128
465,480		 Service charges
6,930
-		 282,058
465,480

41

WORCESTER MUNICIPAL CHARITIES (CIO)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

5 Investments

Unrestricted Unrestricted
funds funds
general general
2025 2024
£ £
Income from listed investments 1,319 1,699
Interest receivable 7,681 12,384
9,000 14,083

6 Other income

Unrestricted Unrestricted Total Unrestricted Unrestricted Total
funds funds funds funds
**general ** designated **general ** designated
2025 2025 2025 2024 2024 2024
£ £ £ £ £ £
Other income 16,716 4,000 20,716 26,592 39,348 65,940

Other income includes £7,125 (2024: £58,635) received from insurance claims.

7 Expenditure on raising funds

Unrestricted Unrestricted
funds funds
2025 2024
£ £
Investment management 404 -

42

WORCESTER MUNICIPAL CHARITIES (CIO)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

8 Charitable activities

Grant making
Almshouses -
retirement
Almshouses -
homeless
Commercial
properties
2025
2025
2025
2025
£
£
£
£
Staff costs
7,063
45,403
9,759
-
Welfare costs
-
10,990
-
-
Routine maintenance
-
89,265
119,411
75,145
Heat and power
-
33,706
-
-
Rates
-
27,291
-
-
Management costs
-
-
23,966
-
Unreimbursed costs
-
-
-
3,344
Cleaning and hygiene
-
1,605
-
-
Refurbishment costs
-
136,096
19,076
-
Rent and service charge
-
6,252
-
-
7,063
350,608
172,212
78,489
Grant funding of activities
(see note 10)
460,648
-
-
-
Share of support costs (see
note 11)
21,051
67,266
111,009
125,849
Share of governance costs
(see note 11)
493
1,579
2,605
2,955
489,255
419,453
285,826
207,293
Analysis by fund
Unrestricted funds -
general
361,541
283,357
285,826
187,667
Unrestricted funds -
designated
-
136,096
-
19,626
Restricted funds
127,714
-
-
-
489,255
419,453
285,826
207,293		 Total
2025
£
62,225
10,990
283,821
33,706
27,291
23,966
3,344
1,605
155,172
6,252
608,372
460,648
325,175
7,632
1,401,827
1,118,391
155,722
127,714
1,401,827		 Total
2024
£
60,704
13,218
264,541
39,183
13,798
62,708
3,792
6,657
286,722
7,487
758,810
521,412
312,585
7,641
1,600,448
1,456,410
20,328
123,710
1,600,448

43

WORCESTER MUNICIPAL CHARITIES (CIO)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

8 Charitable activities (Continued) For the year ended 31 December 2024

Grant making
Almshouses -
retirement
Almshouses -
homeless
Commercial
properties
£
£
£
£
Staff costs
6,945
46,421
7,338
-
Welfare costs
-
13,218
-
-
Routine maintenance
-
65,488
115,493
83,560
Heat and power
-
39,183
-
-
Rates
-
13,798
-
-
Management costs
-
-
62,708
-
Unreimbursed costs
-
-
-
3,792
Cleaning and hygiene
-
6,657
-
-
Refurbishment costs
-
85,047
-
201,675
Rent and service charge
-
7,487
-
-
6,945
277,299
185,539
289,027
Grant funding of activities (see note 10)
521,412
-
-
-
Share of support costs (see note 11)
32,088
64,628
100,149
115,720
Share of governance costs (see note 11)
598
1,620
2,510
2,913
561,043
343,547
288,198
407,660
Analysis by fund
Unrestricted funds - general
437,333
343,547
288,198
387,332
Unrestricted funds - designated
-
-
-
20,328
Restricted funds
123,710
-
-
-
561,043
343,547
288,198
407,660		 Total
2024
£
60,704
13,218
264,541
39,183
13,798
62,708
3,792
6,657
286,722
7,487
758,810
521,412
312,585
7,641
1,600,448
1,456,410
20,328
123,710
1,600,448

9 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year and none of the trustees were re-imbursed expenses (2024: none of the trustees were re-imbursed).

44

WORCESTER MUNICIPAL CHARITIES (CIO)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

10 Grants awarded

Grants awarded
Grants to institutions:
Maggs Day Centre
Citizens Advice Worcester
Armchair
Worcester Community Trust
WHAT
Dancefest
All Sorts of Performing Arts
John Palmer
Grants to individuals (60 (2024-100) grants)
Relief in need and carpets
Educational
White goods
DWAS		 Grant
making		 Grant
making
2024
£
35,211
205,865
18,998
45,691
42,944
20,494
16,233
1,141
386,577
28,406
2,000
3,552
100,877
521,412
2025
£
26,408
194,769
14,249
34,268
42,944
18,491
-
1,189
332,318
39,862
-
619
87,849
460,648

45

WORCESTER MUNICIPAL CHARITIES (CIO)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

11 Support costs

Staff costs
Depreciation
Office running costs
Accountancy
Bank charges and
subscriptions
IT and software
Sundries
Irrecoverable VAT
Telephone
Insurance
Business manager fees
Surveyor fees
Legal & professional
Bank loan interest
Audit fees
Meeting expenses
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
62,458
-
1,103
-
5,993
-
3,356
-
2,965
-
4,241
-
456
-
64,607
-
-
-
56,631
-
16,024
-
62,485
-
18,870
-
25,986
-
-
6,450
-
1,182
325,175
7,632
325,175
7,632		 2025
£
62,458
1,103
5,993
3,356
2,965
4,241
456
64,607
-
56,631
16,024
62,485
18,870
25,986
6,450
1,182
332,807
332,807		 2024 Basis of allocation
£
66,024 Charitable activities
721 Charitable activities
7,017 Charitable activities
3,495 Charitable activities
2,330
Charitable activities
3,778 Charitable activities
307 Charitable activities
79,019 Charitable activities
150 Charitable activities
51,871 Charitable activities
12,376 Charitable activities
51,515 Charitable activities
2,320 Charitable activities
31,662 Charitable activities
6,800 Governance
841 Governance
320,226
320,226

12 Auditor's remuneration

Governance costs includes payment to the auditors of £5,600 (2024: £5,500) for audit fees together with £750 (2024: £750) for other services provided.

46

WORCESTER MUNICIPAL CHARITIES (CIO)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

13 Employees

Number of employees

The average monthly number of employees during the year was:

Support
Warden
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2025
Number
3
2
5
2025
£
115,352
2,833
6,498
124,683		 2024
Number
3
2
5
2024
£
116,986
3,139
6,603
126,728

There were no employees whose annual remuneration was £60,000 or more.

14 Net gains/(losses) on investments

**Unrestricted ** Endowment Total Unrestricted
funds funds funds
general general
2025 2025 2025 2024
£ £ £ £
Revaluation of investments 3,736 - 3,736 1,202
Revaluation of investment properties 45,000 (747,000) (702,000) -
48,736 (747,000) (698,264) 1,202

15 Transfers

During both the current and preceding year transfers were effected from the unrestricted and designated funds to reflect the contributions made towards the WHAT and provision of future repair sinking funds.

47

WORCESTER MUNICIPAL CHARITIES (CIO)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

16 Accommodation owned, managed and in development

Social housing
General needs housing:
Let at social rent
Affordable rent
Supported housing
Total owned and managed
Accommodation in development
Net surplus from social and sheltered housing
Rental income
Service charges
Operating costs
Staff costs
Routine maintenance
Welfare
Heat and light
Rent and service charge
Rates
Cleaning and hygiene
Management cost
Refurbishment costs
Administrative expenditure
Share of support costs
Share of governance costs
Net surplus / (deficit)		 Number of units Number of units
1 January 2025
31 December
2025
-
-
68
68
32
32
100
100
-
-
2025
2024
Social
Sheltered
Social
Sheltered
465,480
275,128
432,680
273,148
-
6,930
-
6,069
465,480
282,058
432,680
279,217
(9,759)
(45,403)
(7,338)
(46,421)
(119,411)
(89,265)
(115,493)
(65,488)
-
(10,990)
-
(13,218)
-
(33,706)
-
(39,183)
-
(6,252)
-
(7,487)
-
(27,291)
-
(13,798)
-
(1,605)
-
(6,657)
(23,966)
-
(62,708)
-
(19,076)
(136,096)
-
(85,047)
(111,009)
(67,266)
(100,149)
(64,628)
(2,605)
(1,579)
(2,510)
(1,620)
179,654
(137,395)
144,482
(64,330)

48

WORCESTER MUNICIPAL CHARITIES (CIO)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

17 Tangible fixed assets

Freehold land
and buildings
£
Cost or valuation
At 1 January 2025
4,402,622
Additions
-
Revaluation
950,000
Transfer from investment property
-
At 31 December 2025
5,352,622
Depreciation and impairment
At 1 January 2025
32,622
Depreciation charged in the year
-
At 31 December 2025
32,622
Carrying amount
At 31 December 2025
5,320,000
At 31 December 2024
4,370,000		 Leasehold
land and
buildings
Fixtures and
fittings
£
£
2,533,082
4,531
-
-
634,726
-
412,192
-
3,580,000
4,531
-
2,772
-
176
-
2,948
3,580,000
1,583
2,533,082
1,759		 Leasehold
land and
buildings
Fixtures and
fittings
£
£
2,533,082
4,531
-
-
634,726
-
412,192
-
3,580,000
4,531
-
2,772
-
176
-
2,948
3,580,000
1,583
2,533,082
1,759		 Office
equipment
£
10,302
2,362
-
-
12,664
7,449
926
8,375
4,289
2,853		 Total
£
6,950,537
2,362
1,584,726
412,192
8,949,817
42,843
1,102
43,945
8,905,872
6,907,694
The carrying value of land and buildings comprises:
Freehold
Long leasehold		 2025
£
5,320,000
3,580,000
8,900,000		 2024
£
4,370,000
2,533,082
6,903,082

Land and buildings with a carrying amount of £8,900,000 were revalued at 31 December 2025 by GJS Dillon, independent valuers not connected with the charity on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

At 31 December 2025, had the revalued assets been carried at historic cost less accumulated depreciation and accumulated impairment losses, their carrying amount would have been approximately £6,935,705 (2024 - £6,935,705).

49

WORCESTER MUNICIPAL CHARITIES (CIO)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

18
Investment property
Commercial
properties
Social
investment
properties
Social
investment
properties
Freehold
Freehold
Leasehold
Fair value
At 1 January 2025
6,077,000
850,000
637,192
Transfer to tangible fixed assets
-
-
(412,192)
Net gains or losses through fair value
adjustments
(747,000)
-
45,000
At 31 December 2025
5,330,000
850,000
270,000		 2025
£
7,564,192
(412,192)
(702,000)
6,450,000

Investment property comprises commercial and social investment properties. The fair value of the investment property has been arrived at on the basis of a quinquennial property valuation exercise carried out in December 2025. The commercial properties were valued by GJS Dillon.

The valuations were made on an open market value basis by reference to market evidence of transaction prices for similar properties.

19 Fixed asset investments

Listed
investments
£
Cost or valuation
At 1 January 2025 33,859
Additions 2,336
Valuation changes 3,736
Cash movement (225)
Disposals (2,474)
At 31 December 2025 37,232
Carrying amount
At 31 December 2025 37,232
At 31 December 2024 33,859
20 Financial instruments
2025 2024
£ £
Carrying amount of financial assets
Instruments measured at fair value through profit or loss 37,232 33,859

50

WORCESTER MUNICIPAL CHARITIES (CIO)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

21
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
Amounts falling due after more than one year:
Other debtors
Total debtors
22
Creditors: amounts falling due within one year
Notes
Bank loans
25
Other taxation and social security
Deferred income
23
Grants payable
Other creditors
Accruals and deferred income
23
Deferred income
Arising from rents paid in advance
All the above relate to the following period and are released in full.
24
Creditors: amounts falling due after more than one year
Notes
Bank loans
25		 2025
£
163,564
235
48,545
212,344
2025
£
274
212,618
2025
£
105,007
2,290
105,178
140,878
55,602
31,134
440,089
2025
£
105,178
2025
£
227,487		 2024
£
206,993
235
41,703
248,931
2024
£
509
249,440
2024
£
33,391
16,367
96,302
140,258
91,306
33,232
410,856
2024
£
96,302
2024
£
341,170

51

WORCESTER MUNICIPAL CHARITIES (CIO)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

25
Loans and overdrafts
Bank loans
Payable within one year
Payable after one year
Amounts included above which fall due after five years:
Payable by instalments		 2025
£
332,494
105,007
227,487
-		 2024
£
374,561
33,391
341,170
176,340

The long-term loan is secured by a fixed charge over the freehold property situated at 1 The Cross, Worcester.

26 Retirement benefit schemes
2025 2024
Defined contribution schemes £ £
Charge to profit or loss in respect of defined contribution schemes 6,498 6,603

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

52

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025		 27
Endowment funds
Income arising on the endowment funds can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses
arising on the assets form part of the fund will be used to acquire further freehold property.
Movement in funds
Movement in funds
Balance at
1 January 2024
Incoming
resources
Resources
expended
Transfers
Gains and
losses
Balance at
1 January 2025
Incoming
resources
Resources
expended
Transfers
Gains and
losses
Balance at
31 December
2025
£
£
£
£
£
£
£
£
£
£
£
Endowed funds
12,844,664
-
-
-
(23,639) 12,821,025
-
-
(455,126)
409,918
12,775,817
Revaluation
reserve
-
-
-
-
-
-
-
-
455,126
560,000
1,015,126
12,844,664
-
-
-
(23,639) 12,821,025
-
-
-
969,918
13,790,943

53

WORCESTER MUNICIPAL CHARITIES (CIO)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

28 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

Movement in funds Movement in funds
Balance at Incoming Resources Balance at Incoming Resources Balance at
1 January resources expended 1 January resources expended 31 December
2024 2025 2025
£ £ £ £ £ £ £
DWAS - 100,878 (100,878) - 87,852 (87,852) -
Platform and WCC carpet
grant - 35,670 (22,832) 12,838 36,000 (39,862) 8,976
- 136,548 (123,710) 12,838 123,852 (127,714) 8,976

DWAS scheme - A contract with City Council to manage the purchase and distribution of white goods in Worcester as part of the Discretionary Welfare Assistance Scheme (DWAS).

Platform and WCC carpet grant - TBC

29 Unrestricted funds - designated

These are unrestricted funds which are material to the charity's activities.

At 1
Tudor House
Sinking fund
Insurance
Previous year:
At 1
Tudor House
Sinking fund
Insurance		 January
2025
Incoming
resources
Resources
expended
Transfers
At 31
December
2025
£
£
£
£
£
36,983
4,000
-
4,000
44,983
195,000
-
(136,096)
(58,904)
-
19,626
-
(19,626)
-
-
251,609
4,000
(155,722)
(54,904)
44,983
January
2024
Incoming
resources
Resources
expended
Transfers
At 31
December
2024
£
£
£
£
£
38,589
1,000
(1,606)
(1,000)
36,983
111,592
-
-
83,408
195,000
-
38,348
(18,722)
-
19,626
150,181
39,348
(20,328)
82,408
251,609		 January
2025
Incoming
resources
Resources
expended
Transfers
At 31
December
2025
£
£
£
£
£
36,983
4,000
-
4,000
44,983
195,000
-
(136,096)
(58,904)
-
19,626
-
(19,626)
-
-
251,609
4,000
(155,722)
(54,904)
44,983
January
2024
Incoming
resources
Resources
expended
Transfers
At 31
December
2024
£
£
£
£
£
38,589
1,000
(1,606)
(1,000)
36,983
111,592
-
-
83,408
195,000
-
38,348
(18,722)
-
19,626
150,181
39,348
(20,328)
82,408
251,609
251,609

54

WORCESTER MUNICIPAL CHARITIES (CIO)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

29 Unrestricted funds - designated (Continued)

The insurance fund is in relation to repair work on 17 St Swithin's street due to flood damage

55

Total 2024 £ 6,907,694 7,564,192 33,859 295,634 (341,170) 14,460,209
Endowment 2024 £ 6,903,083 6,077,000 33,859 (192,917) - 12,821,025
Restricted 2024 £ - - - 12,838 - 12,838
Designated 2024 £ - - - 251,609 - 251,609
Unrestricted 2024 £ 4,611 1,487,192 - 224,104 (341,170) 1,374,737
Total 2025 £ 8,905,872 6,450,000 37,232 212,219 (227,487) 15,377,836
30
Analysis of net assets between funds		 Unrestricted
Designated
Restricted Endowment		 2025
2025
2025
2025		 £
£
£
£		 Fund balances at 31 December 2025 are represented by: Tangible assets
285,872
-
-
8,620,000		 Investment properties
1,120,000
-
-
5,330,000		 Investments
-
-
-
37,232		 Current assets/(liabilities)
354,549
44,983
8,976
(196,289)		 Long term liabilities
(227,487)
-
-
-		 1,532,934
44,983
8,976
13,790,943

56

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

31 Capital commitments

At the year end £nil (2024: £24,406) had been committed for non routine repair work.

32 Related party transactions

The Charity provided rent-free offices with an estimated rental value of £50,000 (2024: £50,000) to Citizens Advice Worcester and was also charged by them 2.5% of licence payments in respect of management fees for managing the Charity's social housing. The charity also provided grants of £194,769 (2024: £205,865) to Citizens Advice Worcester towards its running costs. Paul Griffith, was a trustee of this charity during the year and of Citizens Advice Worcester. Geraint Thomas is a trustee of this Charity and employee of Citizens Advice Worcester.

The Charity provided rent-free offices, a day centre and "free clothes" store with estimated rental values of £24,000 (2024 - £24,000) and also made a grant of £26,408 (2024: £35,211) to Maggs Day Centre. Sue Osborne and Clive Skidmore were Trustees of this charity and of Maggs Day Centre during the year.

The Charity provided a subsidised warehouse and offices to Armchair for which a reduced premium of £55,000 was paid to the WCMC predecessor charity for a 50 year lease in 1996. A grant of £14,249 (2024: £18,998) was made to Armchair. Margaret Jones is a trustee and Richard Boorn was a trustee during the year of this charity and of Armchair.

The Charity provided a rent-free Heritage Museum (Tudor House) with an estimated rental value of £8,000 (2024: £8,000) and also made a grant over two years of £42,944 (2024: £42,944) to the Worcester Heritage and Amenity Trust. Margaret Panter is a Trustee of this charity and of the Worcester Heritage and Amenity Trust.

A grant of £1,189 (2024: £1,141) was made to the John Palmer Educational Foundation. Margaret Jones and Margaret Panter were Trustees of this charity and of the John Palmer Educational Foundation during the year.

Remuneration of key management personnel

The remuneration of key management personnel was as follows:

2025 2024
£ £
Aggregate compensation 124,683 126,728

57

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025

33 Cash generated from/(absorbed by) operations 2025 2024
£ £
Deficit for the year (667,099) (167,943)
Adjustments for:
Investment income recognised in statement of financial activities (9,000) (14,083)
Fair value gains and losses on investment properties 702,000 -
Fair value gains and losses on investments (3,736) (1,202)
Depreciation and impairment of tangible fixed assets 1,102 721
Movements in working capital:
Decrease/(increase) in debtors 36,822 (27,594)
(Decrease) in creditors (51,259) (30,511)
Increase/(decrease) in deferred income 8,876 (4,740)
Cash generated from/(absorbed by) operations 17,706 (245,352)
34 Analysis of changes in net funds
At 1 January Cash flows At 31 December
2025 2025
£ £ £
Cash at bank and in hand 457,050 (17,360) 439,690
Loans falling due within one year (33,391) (71,616) (105,007)
Loans falling due after more than one year (341,170) 113,683 (227,487)
82,489 24,707 107,196

58

A R 2 0 2 5

26 . Tribute

MBE Paul Griffith

Chairman 1985-2025

Paul Griffith MBE 40yrs dedicated service as Chairman of the Trustees of Worcester Municipal Charities

Paul became a Trustee of Worcester Municipal Charities in 1984, he was elected Chairman in 1985 and has been re-elected annually ever since. This is the last Trustees Annual Report, written by Paul.

He was born 1943 in West Malvern, one of three sons of Paul and Dora Griffith, who were also business partners in AG Lewis, the village builders and undertakers.

He was educated 1948 - 1954 at St James’ Primary School, West Malvern, followed by an 11+ place at Kings School Worcester, 1954 - 1961 where he studied languages to A Level.

From 1963 - 1965 he studied Social Work at the Lanchester Polytechnic in Coventry, and was awarded a Diploma. He was then employed in social work posts for his entire career in Worcestershire, retiring in 1999 as a Service Manager for older people.

Between 1973 - 1974 he was a mature student, seconded by Worcester City, to the National Institute for Social Work, studying management.

Paul was attracted to Charity Work originally in the 1980s as he perceived that it could provide practical help to people in need, whereas social work itself had little resources available for things like food, clothes, white goods and fuel bills. Over time he was a Trustee of 19 Charities.

In 1984 he was nominated by Councillors George Randall and Rosanna O’Connor as a Trustee for Worcester Municipal Charities, which was reputed to be worth a fortune, but which rarely awarded grants to applications from social workers, which he hoped to change.

On becoming a Trustee he quickly discovered that the Charity was on a steep downward slope to bankruptcy, with its expenditure considerably exceeding its income, and the endowed property having to be sold to prop up a failing organisation. Only 32 almshouses remained of the original 64, due to lack of maintenance, lack of modernisation, slum clearance, demolition and compulsory purchase orders. Many commercial properties had been sold, some cheaply.

For the next 40 years he led a “step change” transformation of the Charity’s fortunes, using the “incremental” management skills he had learned at the National Institute. He began by engineering a major change of Trustees in 1985, followed by their decision to gradually sell off the Charity’s agricultural assets of farms, farmland, cottages and meadows, and replacing them with commercial properties - effectively quadrupling the rental income. Charges were also introduced for the almshouse residents, who had previously lived rent-free. They were entitled to Social Security rent payments, so there was no resultant hardship.

The new money raised was used to greatly enhance the Charity’s help to needy individuals and to sponsor the other charities that helped Worcester’s poorest and, as a result, he was made MBE in 2011 “for services to the voluntary sector.”

In 2012 the High Street recession began to seriously affect the financial viability of the shops and offices. It was clear the bubble was bursting, and a major change in investment was urgently needed. The Charity then embarked on an imaginative switch from offices and shops to providing homes for the single homeless of which 68 were built or created “over the shops” or in redundant offices between 2013 and 2023. This is described by the Charity Commission as “A Programme Related Investment” that uses its assets to directly further the Charity’s aims, whilst also potentially generating a financial return”.

In 2020 he completed his ambition of writing and publishing his first and last book to fill a gap, because virtually nothing had ever been written previously about the Charity’s rich history - spanning over 450 years. He became curious by the riches to rags process, which had almost ruined the Charity, and set about trying to reverse it.

While handing over the reins of the Chairmanship to Richard Boorn, Paul will continue to support the Charity as a Trustee. The Board sincerely thanks him for his years of commitment, leadership and endeavour in helping restore the Charity to the thriving organisation it is today.

59

A R 2 0 2 5

Nash's and Wyatt's Almshouses

The original almshouses of John Nash (New Street 1661) and Michael Wyatt (Friar Street 1775) were both condemned as part of the infamous "slum clearances" of the 1960s and rebuilt together on the New Street site in 1964

The full history of the Charity is published in a 512 page book which can be viewed at The Hive, Worcester WR1 3PD on our website or purchased from our office at the address below.

Worcester Municipal Charities (CIO) Kateryn Heywood House, Berkeley Court, The Foregate, Worcester WR1 3QG Telephone: 01905 317117 • admin@wmcharities.org.uk www.wmcharities.org.uk

© Copyright - Worcester Municipal Charities

12.06.26