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2025-09-30-accounts

Company Registration Number – 10179857

The Charity Registration Number – 1167968

The Watercolour World Report and Accounts Financial Year Ending 30 September 2025

The Watercolour World

Report and accounts for the year ended 30 September 2025

Contents

Page
Charity Information 1
Trustee’s Annual Report 1
Statement of the Director’s and Trustee’s Responsibilities 7
Independent Examiner’s Report 9
Funds Statements: -
Statement of Financial Activities 12
Statement of Financial Activities Prior Year Statement 13
Movements in funds 14
Revenue Funds 14
Summary of Funds 14
Income and Expenditure Account 15
Balance Sheet 16
Cash Flow Statement 18
Notes to the Accounts 20

The Watercolour World

Company Registration Number – 10179857

Trustee’s Annual Report for the year ended 30 September 2025

The Trustee’s present their Report and Accounts for the year ended 30 September 2025, which also comprises the Directors’ Report required by the Companies Act 2006.

Reference and administrative details

The charity name

The legal name of the charity is The Watercolour World

The operating name of the charity is The Watercolour World (TWW)

The charity’s areas of operation and UK charitable registration.

The charity is registered in England & Wales with the Charity Commission in England & Wales (CCEW) with charity number 1167968

Legal structure of the charity

The charity is constituted as a company limited by guarantee, registered under the Companies Acts. The governing document of the charity is the Memorandum and Articles of Association establishing the company under company legislation.

There are no restrictions in the governing documents on the operation of the Charity or on its investment powers other than those imposed by Charity Law.

By operation of law, all Trustees are directors under the Companies Act 2006 and all directors are Trustees under Charities legislation and have responsibilities, as such, under both company and charity legislation.

The Trustees are all individuals.

1

The Watercolour World

Company Registration Number – 10179857

Trustee’s Annual Report for the year ended 30 September 2025

The principal operating address of the charity is:

Poplar Hall

Burns Green,

Benington SG2 7DB

The registered office of the charity for Companies Act purposes is the same as the operating address shown above.

The Trustees in office on the date the report was approved were:

Frederick Hohler William F Coady Jessica Kelham-Hohler

The following persons served as Trustees during the year ended 30 September 2025: -

The Trustees who served as a Trustee in the reporting period, and. if applicable, their dates of appointment or resignation during the year were: -.

Janice Sacher (resigned 07/08/2025) Algernon Percy (resigned 07/08/2025) Frederick Hohler Bendor Grosvenor (resigned 07/08/2025) William F Coady Jessica Kelham-Hohler (appointed 11/08/2025)

Objects and activities of the charity

The purposes of the charity as set out in its governing document.

The objects of the charity are for the public benefit, to promote the arts and public knowledge, understanding and appreciation of the arts and in particular, but with limitation, the art of watercolour painting. To this end the charity has developed a topographically-indexed website as the platform for an aggregation of documentary watercolours from all over the world. The process of collecting, collating and uploading relevant images commenced in the second half of 2017.

2

The Watercolour World

Company Registration Number – 10179857

Trustee’s Annual Report for the year ended 30 September 2025

The main activities undertaken in relation to those purposes during the year.

The first 6 months of FY 24/25 proceeded as planned. A new more appropriate accounting system was put in place by the Finance Trustee. The workflow generated by the new Head of Operations was solid and the number of images on our website rose to 180,000. Though two promising sources of replacement finance failed us, our Scottish and Irish projects were covered by separate restricted funds and our founding funder (whose wish to withdraw was known) was continuing his monthly support.

However, what was interpreted as a simple delayed payment to us in April turned out a month later to have marked a final payment to us the month before, leaving us unexpectedly unfunded for the second half of our FY.

The lesson was clear. Without a fixed income, our fixed costs were not manageable. We needed a new model and for us, that was the Friends of the Nations’ Libraries: a highly successful Arts project, founded in 1931 and run since with no full-time staff, only volunteers, with outsourced admin and a support group of Friends. With over 84% of our income spent on full-time staff costs, making our staff redundant was inescapable but was hotly debated by Trustees who sought strongly to avoid it. In conclusion, three of them resigned. The Board then voted for the redundancies.

Since that vote in August, redundancies have been made and paid, leaving the project with costs reduced to that of running and maintaining our website and a much reduced reserve.

Post year end.

Our Reserve has received substantial funds and provides TWW once again with a robust financial platform for its operations. This may become a Permanent Endowment Fund in future. Interest earned by the Reserve will be used to fund our field work, as will the proceeds of a limited Christmas Appeal launched in December. This has also generated the beginnings of a Friends of TWW group.

A much wider appeal is planned for later in the year.

To help with the restructuring we have recently welcomed the support of a Volunteer Development Director.

Workflow:

An important partnership between The Society of Antiquaries of London and The Watercolour World, to digitise their 18/19th C collection of county-by-county volumes of works on paper including watercolours, has been announced. It has to be assumed that this project will take many months to complete.

3

The degree to which the achievements and performance during the year have benefited wider society.

The difference the work of the Watercolour World project will make to Human Society, and the quantum of the project’s benefits will not become plain until its work is completed or nearing completion. That date is not yet visible.

The documentary visual record in watercolour of the years 1750 - 1900 is unique and holds within it the largest and most important visual record of human society ever made. At present that record is barely recognised for what it is by its owners, is widely dispersed around the globe in public and private hands, is fragile, little cared for, difficult to access and at constant risk to the effects of War, weather conditions or simple destruction.

TWWs key task is to uncover this record wherever it is to be found; protect and conserve it; digitise it and make it available to all Mankind via its free-access website. When that has been achieved, the origins of the modern world will become clearer for all of us to see, share, interpret and understand.

4

The Watercolour World

Company Registration Number – 10179857

Trustee’s Annual Report for the year ended 30 September 2025

Structure, governance and management of the charity

The methods used to recruit and appoint new charity Trustees

The board meets quarterly and takes a Chairman's report which includes a financial report. In the year under review, the Chairman was Mr Frederick Hohler.

Bankers Coutts and Co., The Strand, London WC2R 0QS

Solicitors Bates Wells Braithwaite, 10 Queens Street Place, London, EC4R 1BE

Financial review

The charity’s financial position at the end of the year ended 30 September 2025

The financial position of the charity at 30 September 2025 and comparatives for the prior period, as more fully detailed in the accounts, can be summarised as follows: -

Net income/(expenditure)
£
Unrestricted Revenue Funds available for
the general purpose of the charity
Total Funds		 2025
(55,512)
134,140
134,140		 2024
(1,296)
189,652
189,652

Financial review of the position at the reporting date, 30 September 2025

The Trustees consider the financial performance of the charity during the year to have been satisfactory.

Policies on reserves

The Board of Trustees, in agreement with the funder, are entitled to hold up to 6 months running costs in cash as a reserve. Throughout the year reserves of approximately this amount have been maintained.

Availability and adequacy of assets of each of the funds

The board of Trustees is satisfied that the charity’s assets in each fund are available and adequate to fulfil its obligations in respect of each fund.

5

The Watercolour World

Company Registration Number – 10179857

Trustee’s Annual Report for the year ended 30 September 2025

Details of The Independent Examiner

Mr Prasanna Ramachandran - Independent Examiner Subtle Accountancy Services Limited, 20 Wenlock Road London N1 7GU

6

The Watercolour World

Company Registration Number – 10179857

Trustee’s Annual Report for the year ended 30 September 2025

Statement of the Directors’ and Trustee’s Responsibilities

The charity's Trustees (who are also directors of the charity for the purposes of company law) are responsible for the preparation of the accounts in accordance with the terms of the Companies Act 2006, the Charities Act 2011 and the Charities (Accounts and Reports) Regulations 2008.

The Trustees follow current best practice and prepare the accounts according to the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, as amended by the Bulletin issued in February 2016, (The SORP).

In particular, the Companies Act 2006 and charity law require the Board of Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity as at the end of the financial year and of the surplus or deficit of the charity. In preparing those financial statements the Board is required to: -

The law requires that the Trustees must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the surplus or deficit of the charity for the year.

The Trustees are also responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which are sufficient to show and explain the charity's transactions and enable them to ensure that the financial statements comply with the Companies Act 2006 and comply with regulations made under the Charities Act. 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.

7

The Watercolour World

Company Registration Number – 10179857

Trustee’s Annual Report for the year ended 30 September 2025

The Trustees are also responsible for the contents of the Trustees' report, and the statutory responsibility of the Independent Examiner in relation to the Trustees' report is limited to examining the report and ensuring that, on the face of the report, there are no material inconsistencies with the figures disclosed in the financial statements.

Method of preparation of accounts – small company provisions

The financial statements are set out on pages 12 to 29. The financial statements have been prepared implementing the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, as amended by the Bulletin issued in February 2016, (The SORP), and in accordance with the Financial Reporting Standard 102, (effective 1st January 2016).

These financial statements have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006. applicable to companies subject to the small companies regime.

This report was approved by the Board of Trustees on 27[th] March 2026

___

Director and Trustee

8

The Watercolour World

Report of the Independent Examiner to the Trustees of the charitable company on the accounts for the year ended 30 September 2025

I report to the Trustees on my examination of the financial statements of the charitable company on pages 12 to 29 for the year ended 30 September 2024 which have been prepared in accordance with the Charities Act 2011 (the Act) and with the Financial Reporting Standard 102, (effective 1st January 2016). as modified by FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, as amended by the Bulletin issued in February 2016, (The SORP), published by the Charity Commission in England & Wales (CCEW), and under the historical cost convention and the accounting policies set out on page 19.

Respective responsibilities of the Trustees and the Independent Examiner and the basis of the report

As described on page 7, you, the charitable company's Trustees, who are also the Directors of the Company for the purposes of Company law, are responsible for the preparation of the financial statements in accordance with the Companies Act 2006, the Charities Act 2011 and all other applicable law and with United Kingdom Generally Accepted Accounting Practice, applicable to smaller entities, and for being satisfied that the financial statements give a true and fair view.

The Trustees consider that the audit requirement of Section 144(1) of the Charities Act 2011 (the Act) does not apply, and that there is no requirement in the memorandum and articles of the charity for the conducting of an audit, and that the accounts do not require an audit in accordance with Part 16 of the Companies Act 2006 and that no member or members have requested an audit pursuant to Section 476 of the Companies Act 2006. Consequently, the Trustees have elected that the financial statements be subject to independent examination.

Having satisfied myself that the financial statements are not required to be audited under any legal provision, or otherwise, and are eligible for independent examination, it is my responsibility to: -

Basis of Independent Examiners Statement and scope of work undertaken

Since the charitable company’s gross income is greater than £25,000, and less than £250,000, the charitable company's examiner must be an independent person who is reasonably believed by the Trustees to have the requisite ability and practical experience to carry out a competent examination of the accounts. I confirm that I am qualified to undertake the examination as a Qualified Chartered Accountant (ACCA).

I report in respect of my examination of the charity's financial statements carried out under s145 of the Act. In carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act setting out the duties of an independent examiner in relation to the conducting of an independent examination. An independent examination includes a review of the accounting records kept by the charitable company and of the accounting systems employed by the charitable company and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you, as Trustees, concerning such matters. The purpose of the examination is to establish as far as possible that there have been no breaches of charity legislation and that, on a test basis of evidence relevant to the amounts and disclosures made, the financial statements comply with the SORP.

9

The Watercolour World

The procedures undertaken do not provide all the evidence that would be required in an audit, and information supplied by the Trustees in the course of the examination is not subjected to audit tests or enquiries and does not cover all the matters that an auditor would consider in arriving at an opinion. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide.

Consequently, I do not express an audit opinion on the view given by the financial statements, and in particular, I express no opinion as to whether the financial statements give a true and fair view of the affairs of the charity, and my report is limited to the matters set out in the statement below.

I planned and performed my examination so as to satisfy myself that the objectives of the independent examination are achieved and before finalising the report I obtained written assurances from the Trustees of all material matters.

Independent Examiner's Statement, Report and Opinion

Subject to the limitations upon the scope of my work as detailed above, I have completed my examination: and can confirm that: -

The accounts of this charitable company are not required to be audited under Part 16 of the Companies Act 2006;

The gross income of the charitable company in the year ended 30 September 2024 meets the requirements of Section 145(1)(a) of the Act, namely greater than £25,000, and less than £250,000, where as a qualified member of CPA Australia, it is reasonably believed by the Trustees that I have the requisite ability and practical experience to carry out a competent examination of the accounts;

This is a report in respect of an examination carried out under 145 of the Act and in accordance with Directions given by the Charity Commission under section 145(5)(b) of the Act which may be applicable;

and that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:-

10

The Watercolour World

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Signed: -

Mr Prasanna Ramachandran - Independent Examiner Subtle Accountancy Services Limited, 20 Wenlock Road London N1 7GU

This report was signed on 29[th] March 2026

11

The Watercolour World

Statement of Financial Activities for the year ended 30 September 2025

SORP Ref
Current Year
Unrestricted
Funds
2025
Income & Endowments from:
£
Donations
A1
70,300
Other Income
A5
5,849
Total Income
A
76,149
Expenditure on:
Charitable Activities
B2
131,661
Total Expenditure
B
131,661
Net Income/(expenditure) for the year
(55,512)
Transfers between funds
C
0
Net Income after transfers
A-B-C
(55,512)
Net movement in funds
(55,512)
Reconciliation of funds: -
E
Total funds brought forward
189,652
Total funds carried forward
134,140		 Current Year
Restricted
Funds
2025
0
0
0
0
0
0
0
0
0
0
0		 Current Year
Total
Funds
2025
70,300
5,849
76,149
131,661
131,661
(55,512)
0
(55,512)
(55,512)
189,652
134,140		 Prior Year
Total
Funds
2024
126,975
8,570
135,545
136,841
136,841
(1,296)
0
(1,296)
(1,296)
190,948
189,652

The 'SORP Ref indicated above is the classification of income set out in the formal SORP documents. As required by paragraph 4.60 of the SORP, the brought forward and carried forward funds above have been agreed to the Balance Sheet. A separate Statement of Total Recognised Gains and Losses is not required as this statement includes all recognised gains and losses.

All the prior year transactions were unrestricted items, and no further analysis is required.

All activities derive from continuing operations.

The notes attached on pages 20 to 29 form an integral part of these accounts.

12

Statement of Financial Activities (including the Income and Expenditure Account for the year ended 30 September 2024, as required by the Companies Act 2006)

The Watercolour World – Statement of Financial Activities for the year ended 30 September 2024

SORP Ref
Income & Endowments from:
Donations
A1
Other Income
A1
Total Income
A
Expenditure on:
Charitable Activities
B2
Total Expenditure
B2
Net Income/(expenditure) for the year
Transfers between funds
C
Net Income after transfers
A-B-C
Net movement in funds
Reconciliation of funds: -
E
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
2024
£
126,975
8,570
135,545
136,841
136,841
(1,296)
0
(1,296)
(1,296)
190,948
189,652		 Restricted
Funds
2024
£
0
0
0
0
0
0
0
0
0
0
0		 Prior Year
Total Funds
2023
£
55,000
1,518
56,518
144,989
144,989
(88,471)
0
(88,471)
(88,471)
279,419
190,948

All activities derive from continuing operations.

The Watercolour World – Resources applied during the year ended 30 September 2023 towards fixed assets

for Charity use: -

assets
for Charity use: -
Funds generated in the year as detailed in the SOFA
Resources applied on functional fixed assets
Net resources available to fund charitable activities		 2025
£
(55,962)
450
(55,512)		 2024
£
(1,746)
450
(1,296)

The resources applied on fixed assets for charity use represents the cost of additions less proceeds of any disposals.

The notes attached on pages 20 to 29 form an integral part of these accounts.

13

The Watercolour World – Statement of Financial Activities for the year ended 30 September 2025

Movements in revenue and capital funds for the year ended 30 September 2025

Revenue accumulated funds
£
Accumulated funds brought forward
Recognised gains and losses before transfers
(From)/To unrestricted revenue funds
Closing revenue funds
Summary of funds
£
Revenue accumulated funds		 Unrestricted
Funds
2025
189,652
(55,512)
134,140
0
134,140
Unrestricted and
Designated funds
2025
134,140		 Restricted
Funds
2025
0
0
0
0
0
Restricted
Funds
2025
0		 Total
Funds
2025
189,652
(55,512)
134,140
0
134,140
Total
Funds
2025
134,140		 Prior Year
Total Funds
2024
190,948
(1,296)
189,652
0
189,652
Prior Year
Total Funds
2024
189,652

The notes attached on pages 20 to 29 form an integral part of these accounts.

14

The Watercolour World – Statement of Financial Activities for the year ended 30 September 2025

Income and Expenditure Account for the year ended 30 September 2025 as required by the Companies Act 2006.

Income
Income from Operations
Other Income
Gross income in the year before exceptional items
Expenditure
Charitable expenditure, excluding depreciation and amortisation
Depreciation and amortisation
Realised losses on disposals of social investments which are programme
related
Total Expenditure in the year
Net income before tax in the financial year
Tax on surplus on ordinary activities
Net income after tax in the financial year
Retained surplus for the financial year		 2025
70,300
5,849
76,149
131,211
450
0
131,661
(55,512)
0
(55,512)
(55,512)		 2024
126,975
8,570
135,545
136,391
450
0
136,841
(1,296)
0
(1,296)
(1,296)

All activities derive from continuing operations.

In accordance with the provisions of the Companies Act 2006, the headings and subheadings used in the Income and Expenditure account have been adapted to reflect the special nature of the charity’s activities.

The notes attached on pages 20 to 29 form an integral part of these accounts.

15

The Watercolour World

Balance Sheet at at 30 September 2025

Tangible Fixed Assets
11
A2
Current Assets
B
Cash at bank and in hand
B4
Money Market Investments
B4
Debtors
Creditors: amounts falling due within one13
C1
Net current assets
The total net assets of the charity
The total net assets of the charity are funded by the funds
Restricted funds
Unrestricted Funds
Unrestricted Revenue Funds
18
D3
Designated Funds
Total charity funds
SORP
Ref
Note		 2025
£
288
41,353
100,000
0
(7,501)
133,852
134,140
of the charity, as follows: -
134,140
0
134,140		 41,563
150,000
10,000
(12,649)		 2024
£
738
188,914
189,652
189,652
0
189,652

16

The Watercolour World – Balance Sheet as at 30 September 2025

The 'SORP Ref indicated above is the classification of Balance Sheet items as set out in the formal SORP documents. As required by paragraph 4.60 of the SORP, the brought forward and carried forward funds above have been agreed to the SOFA.

The Trustees are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.

The members have not required the company to obtain an audit in accordance with section 476 of the Act.

The Trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

The charity is subject to Independent Examination under charity legislation, and the report of the Independent Examiner is on page 10.

The financial statements have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006. applicable to companies subject to the small companies regime.

Approved by the board of Trustees on 23[rd] April 2024

The notes attached on pages 19 to 29 form an integral part of these accounts.

17

The Watercolour World

Cash Flow Statement for the year ended 30 September 2025

Cash Flow Statement for the year ended 30 September 2025
2025
Cash flows from operating activities
Net cash provided by /(used in) operating activities as shown below
A
(50,211)
Cash flows from investing activities
Purchase of property, plant and equipment
B
0
Cash flows from financing activities
Net cash provided by financing activities
C
0
Overall cash provided by / (used in) all activities
A+B+C
(50,211)
Cash movements
Change in cash and cash equivalents from activities in the year
(50,211)
Cash at bank at the beginning of the year
191,563
Change in cash and cash equivalents due to exchange rate
movements
0
Cash at bank and in hand less overdrafts at 30 September 2025
141,353		 2024
921
0
0
921
921
190,641
0
191,563

18

The Watercolour World

Cash Flow Statement for the year ended 30 September 2025 - Continued

Reconciliation of net income/ (expenditure) to net cash flow from operating activities

Net income/(expenditure) as shown in the Statement of Financial Activities
Adjustments for : -
Depreciation charges
Write downs of investments
Net losses on investment assets
Increase in creditors, excluding loans
Net cash provided by /(used in) operating activities
Analysis of cash and cash equivalents
Cash movements
Cash in hand at for the year ended 30 September
Money Market Deposits
Total cash and cash equivalents		 2025
£
(55,512)
450
0
0
0
(55,062)
41,353
100,000
141,353		 2024
£
(1,296)
450
0
0
0
(846)
41,563
150,000
191,563

19

The Watercolour World

Notes to the Accounts for the year ended 30 September 2025

1 Accounting policies

Policies relating to the production of the accounts.

Basis of preparation and accounting convention

The accounts have been prepared on the accrual’s basis, under the historical cost convention, and in accordance with the Financial Reporting Standard 102, (effective 1st January 2016). and 'FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, as amended by the Bulletin issued in February 2016, (The SORP), published by the Charity Commission in England & Wales (CCEW), effective January 2016, and in accordance with all applicable law in the charity’s jurisdiction of registration, except that the charity has prepared the financial statements in accordance with the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, as amended by the Bulletin issued in February 2016, (The SORP), in preference to the previous SORP, the SORP 2005, which has been withdrawn, notwithstanding the fact that the extant statutory regulations, the Charities (Accounts and Reports) Regulations 2008 refer explicitly to the SORP 2005. This has been done to accord with current best practice.

Measurement and estimation - Accounting policies are supplemented by estimation techniques where judgement is required in measuring the value of income and expenditure and of assets and liabilities.

Risks and future assumptions

The charity is a public benefit entity.

Policies relating to categories of income and income recognition.

Nature of income

Gross income represents the value, net of value added tax and discounts, of goods provided to customers and work carried out in respect of services provided to customers.

Categories of Income

Income is categorised as income from exchange transactions (contract income) and income from non-exchange transactions (gifts), investment income and other income.

Income from exchange transactions is received by the charity for goods or services supplied under contract or where entitlement is subject to fulfilling performance related conditions. The income the charity receives is approximately equal in value to the goods or services supplied by the charity to the purchaser.

Income from a non-exchange transaction is where the charity receives value from the donor without providing equal value in exchange, and includes donations of money, goods and services freely given without giving equal value in exchange.

Income recognition

Income, whether from exchange or non-exchange transactions, is recognised in the statement of financial activities (SOFA) on a receivable basis, when a transaction or other event results in an increase in the charity’s assets or a reduction in its liabilities and only when the charity has legal entitlement, the income is probable and can be measured reliably.

Income subject to terms and conditions which must be met before the charity is entitled to the resources is not recognised until the conditions have been met.

All income is accounted for gross, before deducting any related fees or costs.

20

The Watercolour World

Notes to the Accounts for the year ended 30 September 2025

Donated goods, facilities and services

Donated fixed assets are recognised at the current fair value. All such donations are recognised as donation income, and debited to fixed assets.

Donated goods that are not fixed assets are accounted for at a fair value, unless it is impractical to reliably measure the value of the donated items.

In the absence of any direct evidence of fair value of donated goods, then a value is derived from the cost of the item to the donor or, in the case of goods that are expected to be sold, the estimated resale value after deducting any anticipated costs of sales.

If it is impracticable to measure the fair value of goods donated for resale, or the costs of valuation outweigh the benefits, the donated goods are recognised as income when sold, with an equivalent amount being recognised as an expense.

The costs of goods donated for distribution to beneficiaries is deemed to be the fair value of those goods upon receipt. When the goods are distributed freely or for a nominal consideration, then the carrying amount is adjusted at the time of sale, to the value at the point of distribution and the adjustment is shown as a cost of donations made.

The carrying amount of any stock held for distribution is assessed for impairment at the reporting date. All donated goods are recognised as donation income and debited to trading stock. When trading stock is subsequently sold, or appropriated to meet an expense, then the carrying value of the stock is recognised as an expense. In accordance with the SORP, goods donated for distribution to beneficiaries, or for consumption by the charity are included in 'legacies and donations'. Goods donated for resale are included in 'Income from other trading activities'.

The cost of any stock of goods donated for distribution to beneficiaries is deemed to be the fair value of those gifts at the time of their receipt. If the goods held are to be distributed freely or for a nominal consideration, then the carrying amount is subsequently adjusted to reflect the lower of deemed cost adjusted for any toss of service potential and replacement cost. Replacement cost is the economic cost incurred if the charity was to replace the service potential of the donated goods at its own expense in the most economic manner.

Donated services and facilities (including seconded staff and use of property) are included in the accounts on the basis of the value of the gift to the charity.

All donated services and facilities are recognised as donation income when received (provided the value of the gift can be measured reliably) and recognised as an expense with an equivalent value.

Policies relating to expenditure on goods and services provided to the charity.

Recognition of liabilities and expenditure

A liability, and the related expenditure, is recognised when a legal or constructive obligation exists as a result of a past event, and when it is more likely than not that a transfer of economic benefits will be required in settlement, and when the amount of the obligation can be measured or reliably estimated.

Liabilities arising from future funding commitments and constructive obligations. including performance related grants, where the timing or the amount of the future expenditure required to settle the obligation are uncertain, give rise to a provision in the accounts, which is reviewed at the accounting year end. The provision is increased to reflect any increases in liabilities, and is decreased by the utilisation of any provision within the period, and reversed if any provision is no longer required. These movements are charged or credited to the respective funds and activities to which the provision relates.

21

The Watercolour World

Notes to the Accounts for the year ended 30 September 2025

Volunteers

In accordance with the SORP, and in recognition of the difficulties in placing a monetary value on the contribution from volunteers, the contribution of volunteers is not included within the income of the charity.

However, the Trustees value the significant contribution made to the activities of the charity by unpaid volunteers and this is described more fully in Note 7.

Policies relating to assets, liabilities and provisions and other matters.

Tangible fixed assets

Tangible fixed assets are measured at their original cost value, or subsequent revaluation, or if donated, as described above. Cost value includes all costs expended in bringing the asset into its intended working condition.

Depreciation has been provided at the following rates in order to write off the assets to their anticipated residual value over the useful lives.

Plant and machinery

20 % straight line

A regular annual review of the likelihood of asset impairment is undertaken.

Debtors

Debtors are measured at their recoverable amounts at the balance sheet date.

Creditors and provisions

Short term creditors are measured at transaction price (which is usually the invoice price). Other financial liabilities are recognised at transaction price net of any transaction cost.

Pensions – defined contribution schemes

The charity operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

Fund accounting

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.

There are no designated funds.

Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal or as implied by law.

22

The Watercolour World Notes to the Accounts for the year ended 30 September 2025

2 Liability to taxation

The Trustees consider that the charity satisfies the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories coveted by chapter 3 part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively on the specific charitable objects of the charity and for no other purpose.

3 Winding up or dissolution of the charity

If upon winding up or dissolution of the charity there remain any assets, after the satisfaction of all debts and liabilities, the assets represented by the accumulated fund shall be transferred to some other charitable body or bodies having similar objects to the charity.

4 Significance of financial instruments to the charity's position

There are no financial instruments used by the charity.

5 Other Income

Interest Income
Reimbursements		 2025
2024
£
£
3,909
5,837
1,940
2,733
5,849
8,570

6 Net surplus before tax in the financial year

2025 2024
£ £
The net surplus before tax in the financial year is stated after charging: -
Depreciation Expense 450 450
Pensions Costs 3,648 2,334

7 The contribution of volunteers

The charity owes much to the continuing contribution of its regular and occasional volunteers. Normally, a significant part of the charity's progress throughout the year would have been carried out by the essential work of this core team of regular volunteers, supplemented by a surge of summer students. Their contributions are not remunerated but they are reimbursed for travel and lunch expenses of up to which are included in the total under the charitable activities heading.

23

The Watercolour World

Notes to the Accounts for the year ended 30 September 2025

8 Staff costs and emoluments

Salary Costs
2025
£
Gross Salaries excluding Trustees and key management personnel
95,030
Employer's National Insurance for all staff (includes allowance)
7,358
Employer's operating costs of defined contribution pension schemes
3,648
Total salaries, wages and related costs
106,036
Numbers of full time employees or full time equivalents
2025
3
3
3
Engaged on charitable activities
3
Engaged on management and administration
3
The estimated full time equivalent number of all staff employed as above
3
The average number of total staff employed in the year was
The estimated equivalent number of full time staff deployed in different activities in the year was: -
The estimated full time equivalent number of all staff employed in the year was
The average number of full time staff employed in the year was		 2024
£
99,873
4,375
2,334
106,582
2024
3
3
3
3
3
3

Neither the Trustees nor any persons connected with them have received any remuneration from the charity or any related entity, either in the current or prior year.

No employees received emoluments (excluding pension costs) in excess of £60,000 per annum.

9 Defined contribution pension schemes

The charity operates a defined contribution pension scheme, the costs of which are shown in the accounts.

The Pension provider is the government NEST pension scheme

Any liabilities and assets associated with the scheme are shown under debtors and creditors

10 Defined benefit pension scheme

No defined benefit pension.

24

The Watercolour World

Notes to the Accounts for the year ended 30 September 2025

11 Remuneration and payments to Trustees and persons connected with them

No Trustees or persons connected with them received any remuneration from the charity, or any related entity.

12 Tangible fixed assets

Land and
Buildings
Cost
£
At 01 October 2024
0
Additions
0
At 30 September 2025
0
Depreciation
At 01 October 2024
0
Charge for the year
0
At 30 September 2025
0
Net book value
At 30 September 2025
0
Prior year at 30 September 2024
0
13 Contingent assets
No contingent assets
14 Creditors: amounts falling due within one year
Trade creditors
Accruals
PAYE, NIC VAT and other taxes
Other creditors		 Plant &
Machinery
£
5,522
0
5,522
4,784
450
5,234
288
738
2025
£
0
2025
£
0
(2,398)
(4,926)
0
(7,324)		 Motor Vehicles
£
0
0
0
0
0
0
0
0
2024
£
0
2024
£
0
(383)
(2,266)
(10,000)
(12,649)		 Total
£
5,522
0
5,522
4,784
450
5,234
288
738

15 Loans to Trustees included in debtors

No loans to Trustees made.

16 Guarantees made by the charity on behalf of Trustees

No guarantees were made on behalf of the Trustees.

25

The Watercolour World

Notes to the Accounts for the year ended 30 September 2025

17 Income and Expenditure account summary
At 01 October 2024
Surplus/(loss) after tax for the year
At 30 September 2025		 2025
2024
£
£
189,652
190,948
(55,512)
(1,296)
134,140
189,652

18 Particulars of how particular funds are represented by assets and liabilities

At 30 September 2025
Tangible Fixed Assets
Current Assets
Current Liabilities		 Unrestricted
funds
£
288
141,353
7,501
149,141		 Designated
funds
£
0
0
0
0		 Restricted
funds
Total
funds
£
£
0
288
0
141,353
0
7,501
0
149,141

19 Change in total funds over the year as shown in Note 18, analysed by individual funds

Unrestricted and designated funds:
Unrestricted Revenue Funds
Total unrestricted and designated funds
Restricted funds
Charge for the year
Total restricted funds
Total charity		 Funds brought
forward from
2024
£
189,652
189,652
0
0
0		 Movement in
funds in 2025
£
(55,512)
(55,512)
0
0
738		 Transfers
between funds
in 2025
£
0
0
0
0
0		 Funds carried
forward to
2025
£
134,140
134,140
0
0
738

26

The Watercolour World

Notes to the Accounts for the year ended 30 September 2025

20 Analysis of movements in funds over the year (as shown in Note 19)

Unrestricted and designated funds: -
Unrestricted Revenue Funds
Restricted fund		 Income
2025
Expenditure
2025
Other Gains &
Losses 2025
Movement in
funds 2025
£
£
£
£
76,149
(131,661)
0
(55,512)
0
0
0
0
76,149
(131,661)
0
(55,512)

21 Details of transfers between funds in the year (as shown in Note 19)

The transfers shown in note 18 above are: -
Transfers to/(from) Unrestricted Funds to cover deficits on Restricted
To/(from) Restricted Revenue Funds
Net transfers		 2025
£
0
0
0

22 The purposes for which the funds as detailed in note 18 are held by the charity are: -

Unrestricted and designated funds: -

These funds are held for meeting the objectives of the charity to provide reserves for future activities and, subject to charity legislation, are free from all restrictions on their use.

Unrestricted Revenue Funds

23 Ultimate controlling party

The charity under the control of its legal members.

This is a company ltd by guarantee – Every member of the charity has no obligation to contribute in the event of the company being wound up.

27

The Watercolour World

Detailed analysis of income and expenditure for the year ended 30 September 2025 as required by the SORP 2015

This analysis is classified by conventional nominal descriptions and not by activity.

24 Donations and legacies

Donations and gifts
The Marandi Foundation
The Hans and Julia Rausing Foundation
Earl of Plymouth
Greg Fisher
PF Charitable Trust
The Hurlingham Club
Total donations and legacies
A1		 Current year
Unrestricted
Funds
Current year
Restricted
Funds
Current year
Total funds
Prior Year
Total Funds
2025
2025
2025
2024
£
£
£
£
65,000
0
65,000
119,975
0
0
0
0
0
0
0
2,000
0
0
0
5,000
5,000
0
5,000
0
300
0
300
0
70,300
0
70,300
126,975

25 Expenditure on charitable activities – grant funding of activities

Current year Current year Current year Prior Year
Unrestricted Restricted Total funds Total Funds
Funds Funds
2025 2025 2025 2024
£ £ £ £
Grants made to organisations 0 0 0 0
Total grant making costs B2c 0 0 0 0
Breakdown of grants made to organisations Current year Current year Current year Prior Year
Unrestricted Restricted Total funds Total Funds
Funds Funds
2025 2025 2025 2024
£ £ £ £
0 0 0 0
0 0 0 0

28

The Watercolour World

Detailed analysis of income and expenditure for the year ended 30 September 2025 as required by the SORP 2015

26 Support costs for charitable activities

6 Support costs for charitable activities
quired by the SORP 2015
Current year Current year Current year Prior Year
Unrestricted Restricted Total funds Total Funds
Funds Funds
2025 2025 2025 2024
£ £ £ £
Employee costs not included in direct costs
Salaries - Administrative staff 95,030 0 95,030 99,873
Employers' NI - Administrative staff 4,322 0 4,322 4,375
Defined contribution pension costs - Other salaries 3,648 0 3,648 2,334
Travel and subsistence - staff 10,710 0 10,710 12,156
Volunteer costs
Travel and subsistence - volunteers 855 0 855 747
Administrative overheads
Insurance & legal expenses 307 0 307 843
Stationery and printing 0 0 0 0
Subscriptions to periodicals 0 0 0 0
Equipment expenses 0 0 0 0
Software licences and expenses 2,822 0 2,822 2,158
Sundry expenses 3,568 0 3,568 4,000
Website 7,645 0 7,645 9,505
Professional fees paid to the Auditor or Independent Examiner in addition to audit and examination fees
Independent Examiner 400 0 400 400
Professional fees paid to advisors other than the auditor or examiner
Accountancy & Consultancy fees 0 0 0 0
Financial costs
Bank charges 0 0 0 1
Depreciation & amortisation 450 0 450 450
Total support costs 129,757 0 129,757 136,841

29