Company Number. 10038349 Charity Number: 1168170 The Mkldleton Foundation (A company limited by guarantee) Trustees, Report and Financial Statements for the year ended 31 March 2025 The Middleton Foundatlon Contents Page Report of the Trustees Independent Examinerfs report Statement of financial acts"vities Statement of financial activities Balance sheet Statements of cashflows 10 Notes to the financial statements The Middleton Foundation Reference and Administrative Details Trustees P R Woolston C Middleton J P Middleton L E Middleton Secretary R L Johnston Registered Office Haylofts 5 St Thomas, Street Newcastle upon Tyne NE14LE The charity is incorporated in England and Wales. Company Registration Number 10038349 Charity Registration Number 1168170 Independent Examiner Stephen Easton FCA S&WAudit 17 Queens Lane, Newcastle upon Tyne, NE1 1RN Bankers Handelsbanken Durham 43 Old Elvet Durham DH13HN The Middleton Foundatlon Trustees, report For the period ended 31 March 2025 The Trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and accountants, report of the charitable company for the year ended 31 March 2025. Structure? governance and management Nature of governing document The company is constituted a charitable company limited by guarantee, registered in England and Wales (company number 10038349), governed by its Memorandum and Articles of Association dated 10 February 2016 and is a registered charity with the charity commission in England and Wales (charity number 1168170). Recruitment and appointment of trustees The management of the charitable company is the responsibility of the board trustees. The trustees give their time and experience freely. Trustees are elected and co-opted under the terms of the Articles of Association. Induction and training of trustees An induction is provided to new trustees. This allows them to understand their role in the charity, gain clarity on their legal responsibilities, and acquire knowledge on the key policies and procedures of the charity. Relatlonships wlth related partles The company had a wholly owned trading subsidiary, Charity Escapes Trading Company Limited (Company number 10480807) which was wound up on 10 September 2024. Major Risks and management of those risks The trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company and are satisfied that systems and procedures are in place to mitigate exposure to the major risks. The board of trustees reviews the risk register at least annually to ensure transparency and control of all identified risks. Objectives and activities Objects and aims To provide accommodation to vulnerable people with learning disabilities in the North East of England and Cumbria. To promote any charitable purpose for the benefit of the public generally, both in the UK and overseas The Middleton Foundation Trustees, report (Continued) Forthe period ended 31 March 2025 Objectives and activities (Continued) Objects and aims (Continued) To apply the income or all such part or parts of the capital, at such ts'me or times and in such manner as the trustees may in their discretion think fit in making donations andlor grants for the public benefit worldwide for charitable purposes andlor to existing charities whose charitable objects are principally: -The relief of those in need by reason of youth, ill health, disability, financial hardship, or other disadvantage -The prevention or relief of povety -The advan￿rnent of education, the arts, culture or heritage Our ambition is to provide affordable social housing to individuals with learning disabilities. in the North East of England and Cumbria. We understand that providing the right home is the foundation to empowering individuals with disabilities to live a fulfilled life with dignity, independen￿, and empower a sense of belonging in the local community. The Trustees have named this housing project Molly's Project. Objectives, strategies and activities Molly's Project has continued to make progress throughout 2025, purchasing one additional home, with more property purchases in the pipeline. Molly's Project has focused on four key pillars to achieve progress towards its objectives; Finding the forever home: The Middleton Foundation recognises the challenges fa￿d by individuals with learning disabilities and their families in finding suitable accommodation. Through Molly's Project, the Foundation aims to bridge this gap by creating housing options that prioritise accessibility, safety, and inclusivity. Long-Term: Molly's Project emphasises the importance of stability and continuity in the lives of individuals with learning disabilities. By providing long-term housing solutions, Molly's Project aims to create a sense of belonging, independence, and security for its residents. Collaboration and Partnership." The Middleton Foundation is working in partnership with registered Housing Associations who have expertise in this field. Communication: building relationships and continued dialogue with families, colleges, Local Authority commissioners, The Integrated Care Board in the North East and Cumbria, care providers, social workers and Housing Associations. In September 2023 the trustees made the decision to cease supporting the operating of the trading subsidiary. An orderly windup of the company was facilitated, with operations ceasing on 31 January 2024 and the company being wound up on 10 September 2024. Public benefit The trustees consider that by providing affordable housing to vulnerable people with learning disabilities, enabling other charities to raise greater funds for their charitable purposes and by the provision of grants, the Middleton Foundation is delivering public benefit, The trustees confim that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales. The Middleton Foundation Trustees, report (Continued) For the year period 31 March 2025 Achievements and performance The trustees continued to progress and support Molly's Project, the charities housing project for individuals with autism andlor learning disabilities in the North East of England and Cumbria in 2025. 2025 has continued to be a year of investment, building a stable foundation for Molly's Project in terms of developing relationships with strategic partners and securing additional homes for those in need. During the year the trustees made significant progress on its four key pillars of Molly's Projec( The charity purchased an additional forever home in the North East of England, supporting one addits.onal person with autism andlor leaming disabilities to live and thrive independentty in a long term forever home. This acquisition took the total number of homes provided to four. The rental income received on all properties has been designated into Molly's Project to help more individuals with leaming disabilities find their forever home. The trustees developed their working collaboration and partnership with two registered housing providers. Molly's Project has continued to invest significant resour￿ into building and maintaining relationships with eight local authority commissioning teams in the North East and The Integrated Care Board in the North East and Cumbria. Key non-financial performance indicators In the year Molly's Project has provided; - Affordable housing for one additional person with learning disabilitieslautism in the North East and Cumbria., bringing the total number of people supported by Molly's Project to nine people with learning disabilities in the North East and Cumbria. The project purchased one additional forever home, bringing the total number of forever homes provided to four. The trustees were pleased to be able to award donations totalling £2K (2024: £ 36K) to five charities. Financlal review The charity received £145K in the year, all of which was earnt from rent and interest. All of this income has been designated to Molly's Project to provide further affordable housing for individuals with leaming disabilitieslautism in the North East and Cumbria. Policy on reserves In line with Charity Commission guidelines the trustees monitor the level of reserves held to ensure they are being used to help the objectives of the charity. The calculation of f￿e reserves is based on the definition included in the charity statement of recommended practice (SORP), which provides recommendations for accounting and reporting for charities. The trustees have examined the requirements of the charity to hold free reserves - those reserves not invested in tangible fixed assets, excluding intercompany loans, long term liabilities, or designated for a particular purpose. The Trustees considered it would be appropriate to hold the equivalent of 3 months expenditure. 3 months expenditure would equate to holding approximately £5K in free reserves. On this basis free reserves are £5k at the year-end (2024 . £12k negative). Fundraising dlsclosures The charity is required to report how it deals with fundraising from the public. The charity does not use a professional fundraiser or commercial participator to raise funds. Any monies raised direct from the public follows all guidelines set out by the Charity Commission and UK law in every respect. We respect the privacy and contact preferences of all public donors. The charity's brand awareness is facilitated through a public relation consultant, social media feeds and positive word of mouth advertising. We report on any fundraising complaints for which there were none in 2025. The Middleton Foundatlon Trustees, report (Continued) For the year period 31 March 2025 Plans for future periods The trustees are encouraged by the progress made on Molly's Project to date. The trustees remain committed to provKling affordable social housing to individuals with autism andlor learning disabilities in the North East and Cumbria. There is a substantial need in the local community for this provision. Over the long temi the ambition is to provide a legacy of a substantial property portfolio which provides valuable forever homes, linking with colleges and schools to provide the next step in the personal development of young people with learning disabilities. Post year end the charity has purchased two additional properties housing three individuals. Going concern The charity's forecasts and projections for the next twelve months show that the charity should be able to continue in operational existence for that period. The charity has a significant positive cash balan￿ and is forecasting to invest this income to generate rentsl income to finan￿ operats'ons. Statement of Trustees. Responsibilities The trustees (who are also the directors of The Middleton Foundation for the purposes of company law) are responsible for preparing the trustees, report and the fi'nancial ststements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practi￿) and applicable law and regulatsons. Company law requires the trustees to prepare financial stateThEnts for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming reSoUr￿S and application of reSoUr￿s, including its income and expenditure, for that period. In preparing these financial statements: the trustees are required to: select suitable accounting policies and apply them consistently; observe the methods and principles in the Charities SORP; make judgements and estimates that are reasonable and prudent; state whether applicable UK Accounting Stsndards have been followed. subject to any material departures disclosed and explained in the financial statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactsons and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the chantable company and hen￿ for tsking reasonable steps for the prevention and detection of fraud and other irregularities. The annual report was approved by the trustees of the charity on 29 January 2026 and signed on its behalf by: F/•(L P R Woolston Trustee The Middleton Foundation Independent examiner's report to the trustees of The Mlddleton Foundatlon For the year ended 31 March 2025 I report to the trustees on my examination of the accounts of The Middleton Foundation for the year ended 31 March 2025, which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows, and the notes to the accounts, including significant accounting policies. Respective responsibilities of trustees and examiner and basis of report As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the Companies Act,). Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the Companies Act and are eligible for the independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the Charities Act,) and in carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the Charities Act. Independent examlnerfs statement I have completed my examination. I confirm that no material matters have coffE to my attention in connection with the examination giving me cause to believe that in any matenal respect: accounting records were not kept in respect of the Company as required by section 386 of the Companies Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the accounting requirements of section 396 of the Companies Act other than any requirement that the accounts give a 'true and fair view which is not a matter considered as part of an independent examination; or 4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Middleton Foundation Independent examiner's report to the trustees of The Middleton Foundation For the year ended 31 March 2025 I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Stephen Easton FCA The Institute of Chartered Accountants in England and Wales S&W Audit 17 Queens Lane Newcastle upon Tyne NE11RN 30 January 2026 The Middleton Foundation ststement of Flnancial Activities (Including Income and Expenditure Account) For the year ended 31 March 2025 Unrestricted funds Total 2025 Total 2024 Notes Income and Endowments from: Donations and legacies Charitable activities Investment income 39,852 51,305 77,227 77,172 67,622 77,172 67.622 Total income 144,794 144,794 168,384 Expendlture on: Charitable activities (37,805) (37,805) (179,966) Total Expenditure (37,805) (37,805) (179,966) Net movement In funds 106,989 106,989 (11,582) Reconciliation of funds Total funds brought fO￿ard 2,473,149 2,473,149 2,484,731 Total funds carried forward 17 2,580,138 2,580,138 2,473,149 All income and expenditure derive from continuing activities. The Middleton Foundation Comparative Statement of Financlal Activities For the year ended 31 March 2025 Unrestricted funds Total 2024 Notes Income and Endowments from: Donations and legacies Charitable activities Investment income 39,852 51,305 77,227 39,852 51,305 77,227 Total income 168,384 168,384 Expenditure on: Charitable activities (179,966) (179,966) Total Expenditure (179,966) (179,966) Net movement in funds (11.582) (11,582) Reconciliation of funds Total fvnds brought forward 2,484,731 2,484,731 Total funds carried forward 17 2,473,149 2,473,149 The Middleton Foundation Balance Sheet As at 31 March 2025 2025 2024 Notes Fixed assets Tangible assets Investments 1,172,826 1,024,747 12 1,172,826 1,024,748 Current assets Debtors Cash at bank and in hand 13 14 795,363 621.495 784,135 676,251 1,416,858 1,460,385 Credltors: amounts falling due within one year 15 (9,546) (11,985) Net current assets 1,407,312 1,448,401 Net assets 2,580,138 2,473,149 Funds of the charty: Unrestricted funds 17 2,580,138 2,473,149 For the financial year ended 31 March 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476. The directors aCknO￿edge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. The financial statements were approved and authorised for issue by the trustees on 29 January 2026 and signed on their behalf by: P R Woolston Trustee The notes on pages 11 to 22 form part of these financial statenEnts. Company registration number 10038349 The Mlddleton Foundation Statement of Cash Flows As at 31 March 2025 Note 2025 2024 Cash flows from operating activitles: Net cash (expenditure)lincome 106,989 {11,582) Adjustments to cash flows from non