REGISTERED COMPANY NUMBER: 02996621 (England and Wales) REGISTERED CHARITY NUMBER: 1168733 Report of the Trustees and Flnanclal Statements for the Year Ended 31 March 2025 for Natural Breaks Llmlted SB&P Chartered Accountants & Statutory Auditors Oriel House 218 Oriel Road Bootle Merseyside L20 7EP
Natural Breaks Lirnited Contents of the Financial Ststements for the Year Ended 31 March 2025 Page Report of the Trustees 1 to 11 Report of the Independent Auditors 12 to 15 Statement of Flnanclal Actlvltles 16 Statement of Flnanclal Posltlon 17 Statement of Cash Flows 18 Notes to the Statement of Cash Flo 19 Notes to the Financial Statsments 20 to 26
Natural Breaks Limited Report of the Trustees for the Year Ended 31 March 2025 The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2025. The trustees have adopted the provisions of Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charib'es preparing their accounts in accordance th the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102} (effective 1 January 2019). Page 1
Natural Breaks Limlted Report of the Trustees for the Year Ended 31 March 2025 OBJECTIVES AND ACTIVITIES Objectlves and aims To relieve the needs of adults and children with disabilities and their carers residing in the North West of England by.. Providing help, support and guidance. Promoting health and well being through supporting individuals to lead full and active lives. Providing supported holidays. Providing opportunities for respite. Misslon We believe living an ordinary life can be extraordinary. Our mission is to work with people with disabilities, their families, commissioners and our strategic partners to develop and deliver excellent personalised setvices. providing the highest standards of support and care, and bes+ value for money so that people with disabilib'es and complex needs and their families can live more fulfilling and inclusive lives. Values Our mission is underpinned through 'The Natural Breaks Way,; our values being.. Person centedneSS The people we support are atlhe heart of everything we do. We believe in empowering people to develop the skills and confidence to fulfil their aspirations and dreams. Respect We believe in paying due regard and consideration for the feelings, abilities and rights of others. Natural Breaks is a Place where everyone feels valued and contributes to making a difference. Kind We believe in the importance of being caring and considerate in providing support that empowers people to live their best life. Commitment We are dedicated to working together to deliver an exceptional service where people are encouraged to achieve their goals and aspiration5. Inclusive We believe every individual has the right to live as a valued member of their community, crealing a sense of belonging and ability to positively contribute to that community. Creative We are imaginative and resourceful in finding solutions which meet individual needs and aspirations, as well as those of the organisalion. Our key buslness objeclives for 2024-2025 were as follows: To continually assess the needs and priorities of people we support, workforce availability and technological solutions to deliiier services in a safe and secure was. To provide value for rnoney to the people and organisations who commission our services. To maintain our position as a preferred supplier with Liverpool Adult Social Setvices and all local authorities in the areas where we operate as an approved provider on the Liverpool City Region Framework. To deliver the FinanGial Sustainability Plan to increase income generation and to tightly manage expenditure. To develop a pathway to prepare to achieve CQC Outstanding status. To deliver our Workforce Development Strategy and implement changes to our pay and benefits, tenns and condilions, health and wellbeing support. To commence 'Natural Breaks 2030, a strategic review of the needs of people we support, Iheir families and commissioners from 2025 onwards. To deliver our 'Back to Basics, programme. bringing together staff, senior managers and Trustees in resetting expectstions and standards using insights and experiences of the people we support. To develop our Cyber Resilience strategy and Digital Development Plans. To continually review how the services we provide fit wth the 'a life not a service, concept and identifying how we could address those needs. To develop innovative solutions to meet the needs of people with disabilities who fall outside assessed needs services. Page 2
Natural Breaks Limlted Report of the Trustses for the Year Ended 31 March 2025 OBJECTIVES AND ACTIVITIES Slgnlflcant activities Supported Livin9 - we support 25 people providing support at the right level that enables people to live their lives in their own homes. Support is provided by teams who are dedicated to each person. Teams have a co-ordinator who is directly responsible to a senior manager. Social and Leaming- we work with 39 people who have been assessed as needing one or more people to support them. This involves our support staff meeting people at the places where they live or at a pre-arranged place so that they can get out regularl51 to get involvpd in things that wll enhance their wellbeing i.e. college or other classes., employment or voluntary work,. sports and exercise. 'The Br8aker5' caravan- our accessible caravan in North Wales. In total 15 people we support and other people with disabilities, plus their families or carers used the caravan, some more than once. Newquay Holiday - this is an annual event that takes place in lale Summer. In 2024, 10 people we support went with 3 staff. The trLlStees are extremely grateful to Liverpool Lions for their financial contribution to costs and Newquay Lions who host the trip and provide a range of activilies for the people we support to enjoy. We delivered a number of events in 2024-25. The events held were designed to appeal to different tastes and interests of as many people we support as possible. Where possible the events were opened up to people with needs who are not supported by Natural Breaks and in some cases. the local community- We were able to ulilise some of the funds raised through 'Take a Break with Natural Breaks, fundraising lo make these events accessible to more people. Highlights included: Excursion) to get'sea airf at Llandudno, Blackpool, and West Kirby. Trips to Cheshire OaKs (Christmas Shopping) and ITVS Coronation Street set. Seasonal events to celebrate Easter and a Halloween paty- Celebrating landmark birthdays for people we support and long service awards for staff. Christmas Paty. Christmas jumper day and trip to see a local Christmas Panto. Launching inclusive Bowling Nights which have become particularly nice event for friends and families to join in. A walking group established by our Have Your Say group - the representatives of people we support- who identify and lead walks in parks and other places of interest on Merseyside. A copy of the 2024-25 Impact Report is available on our website https..l.natura1breakS.cO.Ukl Public benefit In setting our objectives and planning our activities the trustees have considered the Charity Commission's general guidanee on public benefit Page 3
Natural Break5 Limlted Report of the Trustees forthe Year Ended 31 March 2025 ACHIEVEMENTS AND PERFORMANCE Charitable actlvities In the year to 31 March 2025 our key achievements were as follows.. Continuing to provide quality services to the people we support and their families and carers, despite the well documented challenges Ihe sector faces. The Care Quality Commission's approach to inspections of providers, se*icee has changed bul our rating remains GOOD. In their July 2023 'off-sile' dynamic monitoring review the inspectors stated 'we have not found evidence that we need to carry out an inspection or reassess our rating,. The last fvll inspection in May 2019 focused on the five key areas as to whether the service provided is safe. effective, caring, responsive and well-led. Natural Breaks was rated as GOOD in all areas. The inspector commented.. 'People were positive about the care and support they received from Natural Breaks, 'staff werp cating and always promoted people's dignity and independence, 'People and their relatives were highly complimentary about the seNice. People lold us the service was "excellenv, and met people's needs, 'People ive spoke with told us they felt safe being supported by the staff. and staff were able to describe the course of action they would take if they felt someone was being harmed or was at risk of hami, Risks which compromised people's health and well-being were appropriately assessed, and conlained a high level of detailed infonmation, Two of our senior managers have jointly run the Liverpool Registered Managers forum since March 2024. Maintaining preferred supplier status with Liverpool Adult Soaal Services. Liverpool City Council Contracts and Commissioning meetings with providers have now resumed and cover., safeguarding, quality assurance. use of voids and topical matters. No issues were raised in respect of Natural Breaks, and only positive verbal feedback was received about the Charity's excellent reputation. Holding approved provider status with the local authorities for Wirral. Sefton and Cheshire West and Chester. Delivering our finanLial sustainability plan, which enabled us to increase income and manage our costs whilst keeping our 2024-2.5 pay rates at Real Living Wage levels. Using the Positive 8ehavioural Support skills and knowledge in our senior management team to ensure a further SJI ccessfvl transition of I0 young people wlh multiple complex needs from child to adult social care. Achievements that have led to us being approached to deliver similar services. Developing ideas around 'a life not a service,, for example,. future proofing housing models, facilitating volunteering opportunities in local communities, people we support Co-editing our newsletter and determining the annual events programme. Listening to the people we support and their families to understand how well our support services are meeting their needs and identify what's working well for them and where improvements could be made. In our 2025 annual survey we focussed on-, safety. effectiveness, caring, responsive and well-led-.- 95 /0 rated our services safe- 98 % rated our services effective- 97 /0 rated our services as caring- 95 /0 rated our setvices as re5ponsiv& 95 /4 rated our services as well-led Delivering our workfor Development Strategy., pulling together iniliatsves around pay, benefits. conditions, training & development, health and wellbeing ensuring we remain an attractive and competitive employer. In our latest staff survey (July 2025) employees were asked what they felt aboul their job and overall experience of working al Natural Breaks, what's working for them and where improvements could be made.'- 93Q/o considered their job responsibilities were clearly defined- 860/9 felt they were kept up to date with news about our organisation and developments- 880/9 felt Natural Breaks is committed to ensuring the wellbeing of employees- 930/0 considered they're happy in their work- 86 /0 would recommend Natural Breaks a good place to Work- 70 /0 felt our employee benefits scheme suitable Developing our Cyber Resilience strategy and Digital Development Plan5,. including further implementation of our care support system, data migration to cloud storage and replacing obsolete hardware to support the upgrade to Windows 11 across the organisalion. Delivering our 'Back to Basics, programme - a series of workshops bringing logether staff. senior managers and TrL15tees with the people we support, to reset expectations, standards and clarity around roles and responsibilrties. Seeing the Have Your Say group grow in confidence with an increased sense of empowerment. where they have made important contributions to the 'BaGk to Basics, workshops. staff Welcomellnduclion days, interview panels and training se55ions. Kicking off the 'Natural Breaks 2030, strategic review started with a visioning workshop to consider the needs of people we support, their families and commissioners in five years time. Follow-on strategic work to consider digital and workforce developments and impacts is part of our 2025-26 plans. Page 4
Natural Breaks Limited Report of the Trustees for the Year Ended 31 March 2025 ACHIEVEMENTS AND PERFORMANCE Fundraising activlties The Trustees decided to aim for modest fundraising levels in 2024-25 and to continue all fundraising without recourse to an Internal fundraispr or external support. The charity successfully raised funds around the theme 'Take a Break with Natural Break5,. This fund is designed to provide assistance for people with disabilities to be able to access subsidised trips, events etc. Our Chief Executive led on bids and other funds were raised through our staff and trustees, their families and friends, and families and friends of people we support. We raised £6,185 mainly through the following.. A successfrjl bid for £4.000 from Scott Bader A donation from an employee of Scott Bader, related to a person we support, using their allocation of the Scott Bader Employees charity support scheme Other donations from individuals connected wth our staff, trustees and friends and families of people we support The easy fundraising scheme when our supporters use this facility for their on-line shopping Additionally.. one of our senior managers is a BILD (British Institute of Learning Disabililiesl accredited Positive Behavioural Support Coach IPBSI and olher members ofour senior management team hold PBS practitioner status. A relative of our Finance Manager and their work colleagues gave their'charity day, to decorate the home of a person we support, A relative of our Chief Executive gave their'charity day, to mentor our Communications & Matheting coordinator. Our website, fully launched in 2018, has excellent, secure fundraising functionality and is the prime method for receivlng donations. Natural Breaks has registered with the Fundraising Regulator and follow the Code of Fundraising Practice. We do not use professional fundraisers or commercial participators. All events are managed by a nominated employee and all funds raised are maiiaged by our Finance Manager. The very nature of our charity brings us into contact with vulnerable people and we have.robust safeguarding and professional boundaries policies. We have had no complaints about fundraising by our charity. Internal and external factors The trustees are delighted with the performance of our Chief Executive, Diane Hesketh. Diane is an ideal fit for Natural Breaks., she always brings great enthusiasm to the role, her leadership has transformed the senior management team. motivated and developed our workforce, raised tte profile and importance of Natural Breaks with commissioners. Diane has a real rapport with the people we support and their families. Due to Diane's leadership Natural Breaks was nominated as a finalist 81 the 2024 National Diversity Awards, whilst at the 2024 Learning Disability & Autism Awards our Have Your Say group was shortli5ted for 'The Peoples Award, and one of our senior managers was shortlisted for 'The Outstanding Contribution Award,. Diane herself was shortlisted for a Women Achieving Greatness in Social Care IWAGS} award. FINANCIAL REVIEW Flnancial posltlon The actions in our Financial Sustainability Plan, first introduced by the trustees in 2018-19, conb'nued throu9h 2024-25. Our income grew by 8 6 /0. reflecting uplifts in rate5 paid by commissioners and increased delivery. Through careful management of resources {e.g. yet again we delivered our services wlhout recourse to agency staffing) and tight control of costs, we were able to continue to pay at Real Living Wage levels bul keep our expenditure increase to 13.5Q/o. Overall, the organisation recorded a surplus of £18,66710.40/0) which was better than forecast in the plan. The trustees have agreed a further financial sustainability plan for 2025-26 with a number of actions identified, initiatives to increase overall income and measures to tightly Gontrol costs. Included within the charity balance sheet at the year-end is an amount of £86,627 being deposits held on behalf of beneficiaries of the charity (the 'Designated Custodian Fund'}, the amount 15 duly represented by an equal creditor of £86,627. Page 5
Natural Breaks Limited Report of the Trustses for the Year Ended 31 March 2025 FINANCIAL REVIEW Prlncipal fundlng sources Our principal funding in 2024-25 came from commissioners in the local authorities of Liverpool and Sefton with some via NHS Continuing Heal*h Care. Other funding came from direct payments by people we support, their families and carers. There were restricted grants and funds rèceived in 2024-25 amountsng to £7,906 in respect of the 'Take a Break wth Natural Breaks, fund and funding for the caravan. Investment pollcy and obJectlve8 Funds that are surplus to requirements in the short term are kept in fixed temi and notice-based interest-bearing accounts in accordance with the Charity's Investments Strategy. The trustees consider that the return of 1.81/10 for 2024-25 is acceptable given the nature of the investsment5. Natural Breaks does not have any other investments. Reserves pollcy Natural Breaks is determined to keep a level of reserves commensurate with balancing the need to release funds with the need to retain suffiaent funds for an ordedy. compliant closure and redundancy costs. The calculation of average monthly operating costs includes all recurring predictable expenses such as redundancy for office-based staff, salaries, taxlNI and rent. Best- and worst~case breakdowns are held wlh the organisation's ReseNe Policy. The level of reseNes at 31 March 2025 increased to £942,564. The trustees acknowledge that this is higher than that required by the best-case {£310,127} and worst-case (£441,407) costs in the Reserves Policy but they believe that it is appropriate in view.of the general economic uncertainty in the sector, pressures on income and increasing staff costs, for example, employers national irisurance. Tne Reserves Policy is kept under regular review and at the next major review in 2026 trustees will consider policy robustness and appropriate levels of reserves against emerging threats. for example. cyber. FUTURE PLANS The trustees are fully aware of the shortlmediurn term challenges Natural Breaks face in delivering social care. The need to balanc.e the pressures on income- the expectations of people we support and their families and carers,. the need to excel in regulatory requirements and to meet the needs to reward and develop our workforce are kept in sharp focus. Looking to the longer term. the trustees recognise that there will be significant changes to social care provision and, wth our Chief Executive and all managers, are continuing work to develop our'Natural Breaks 2030, slrategy which will shape our business plans over the next five years. Our plans for 2025-26 build on the financial sustainability and the workforce development actions introduced in previous years that have placed the organisalion in ideal shape to expand the range of Services and activities we can provide. Our plans include.. Ensuring we continue delivering seNices in a safe and secure way by assessing the needs and priorities of people we support, workforce availability. technological solutions and HM Government. commissioners and public health guidance guidance Delivering the financial su5tsinability plan to increase income generation and tightly manage expenditure Implementing a pathway to achieve CQC Outstanding status Delivering our Workforce Development plan, implementing changes to our pay and benefits, terms and conditions, health and wellbeing support to ensure we remain an attractive and competitive employer Developing the Strands of the 'Natural Break5 2030, strategic review that commenced in 2024-25, by considering the digital needs of people we support, dèvelopments with Al and digital tools and the consequent workforce requirements Establishing our Digital Transfomiation, Cyber Security & Data Protection plan, encompassing transformation streams ot, people we 5UPPOrt {induding digital exclusion)., frontline,. communications & digital infrastructure,. back office. and Cyber security and data protection Reviewing how the sorvices we provide fit with the 'a life not a service, concept and identifying how we could address those other need5, in particular. reassessing the housing needs of the people we support with the aim of future proofing housing models. Developing innovative solutions to meet the needs of people with disabilities who fall outside assessed needs services. Page 6
Natural Breaks Llmlted Report of the Trustees for the Year Ended 31 March 2025 STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document The charitv is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. Charlty constitution Natural Breaks activities started in 1992 and was incorporated as a not-for-profit company limited by guarantee in 1994. In August 2016 it became a registered charity. Recrultment and appointment of new trustees The Articles allow for up to 9 trustees (minimum 2). As at 31 st March 2025, the Board had 6 trustees. Natural Breaks has a policy governing conflicts of interest and all trustees must ¢omplete a declaration of interests. A register Is maintained by thts company secretary. Trustees are elected by the members of the Gharity and one third. by rolats'on, each year must retire and can stand for re- election. The trustees have discretion to admit into membership of the charity individuals who support the objects of Natural Breaks. Constant regard is paid to the skills mix of the trustees to ensure they all have the necessary skills to contribute fully to the charity's development. Organlsatlonal structure The oraanisation structure at 31 st March 2025 was as follows: Trustees hief Executiva.. HR.&Qualty'" surance.M8r. elvice Manage 'tommunication oordinator Finance Mana8erf. "Service Coordinators. Supportworker Page 7
Natural Breaks Llmited Report of the Trustees for the Year Ended 31 March 2025 STRUCTURE, GOVERNANCE AND MANAGEMENT Decision making The boa-, d of trustees meets bi-monthly. The board is supported by the following committees, with defined terms of reference, and which meet throughout the year.. Govemance and Safeguarding Finance Business and Marketing Recogiising the importance of digital developments and cyber security, the trustees established a new Digital & Cyber committee in 2025. It has defined terms of reference and is chaired by one of our trustees who has extensive knoedge of digital developments and cyber security particularly in adult social care. The chief executive and senior managers attend, and provide reports to. regular meeting5 of the board of trustees and the committees. This enables the business of Natural Breaks. including strategy development and governance, to be undertaken collaboratively. The chief executive manages the day to day business within defined authority delegated by the trustees. The delegated authority is reviewed annually and covers activities that tsn be undertaken without the trustees, specific agreement. for example.. Size and scopè of services that can be procured. Fundraising. Staff policies. Staff remuneration. Budget 2nd cxpenditure. Procurernent of assets. contraUal cbligations and liabilities. Inductlon and training of newtrustees On becoming a trustee, trustees are briefed by the chair on their responsibilities as a trustee. They are briefed by their co- trustees and chief executive on the history of Natural Breaks, financial position and operational management of the charity, current objectives and future plans. The trustees are encouraged to attend any courses which they feel are relevant to the development of their role and keep up lo date on any changes in legislation. All the directors at the lime Natural Breaks became a charity undertook independent training in Ihe 'roles and responsibilities of trustees, and members of the Finance Committee undeitook'financial awareness, training. Page 8
Natural Breaks Llmited Report of the Tvustees for the Year Ended 31 March 2025 STRUCTURE, GOVERNANCE AND MANAGEMENT Risk.management The Gove.rnance Committee regularly review the strategic risk register and have identified key risks and determined their mitigation. These include.. Competitlon from slmllar organisatlons, with an ever-present factor being those paying higher wages and an emerging factor being use of technology Mitigation - The trustees have agreed to pay the Real Living Wage for 2025-26 and continue lo monitor the local market lo ensure the charity's reward and recognition package is attractive. Developments in adult social care in the Merseyside area and all requests for new services are logged and outcomes are reported to the Busine55 & Marketing Committee. Families and carers are surveyed regularfy and their feedback acted upon.,. Cyber Security & Data Protectlon. Mitigatlon - Our Cyber Security and Data Protection stralegy was signed ott by trustees in 2024 and is reviewed annually. Our detailed Cyber Security Plan, Incident Response Policy and Business Continuity Plans are currently under review. Cyber insurance has been put in force for a number of years, covers and limits are kept under review and insurers requirements for backups and patch deployments implemented. Windows 11 was implemented across the organisalion in 2024 and servers and equipment were replaced. Our email system was upgraded in 2025 and multi factor authentication is scheduled for later this year. Cyber Security and Data Protection .matters are reported through the Digital & Cyber Committee. Over dependency on one key suppller. Mltlgatlon - Opportunities to develop transition services and services in boroughs outside Liverpool are monitored. Work will continue to develop additional sources in 2025-26. Employment issiies. which we perceive could emerge across the sector through the post Covid employment market, such as., recruitment and retention, wellbeing and mental health. Mitigation - Quite unique to Natural Breaks, we have maintained our standard of not using temporary agency staff lo provide direct support. A number of factors have made this possible and sustainable including effective rota management. targeted recruitment campaigns, our'Refer a Friend, initiative and successful engagement with an ernployment agency to source permanent support workers and middle managers. Our Ghief Executive hosts a quarterly CEOISupport Worker Forum enabling direct communication and an opportunity for our support workers to inform and influence operational and organisational practice. Emi loyee health and well-being is a priority area for the organisation. Individual health and welfare checks regularly take place and employee support is available through our Employee Benefits Flexcel Platform. Our Wellbeing Strategy, risks and appropriate mitigation measures was introduced in 2022 and is reviewed regularly with training including Mental Health Awareness and Mental Health Champions taking place. Our'Back to Basics, programme for all slaff. managers and trustees introduced in June 2024 reinfOrd roles and responsibilities, policies and procedures and good practices. Dependency on Income from local authoritles. Mitigation - The trustees are aware of comments made by local authorities aboilt their funds. Statements from Liverpool City Council on their financial viability and the potential implications ?f a Section 114 will be monitored. Our Chief Executive. as a member of VODG and through other forums, has the opportunity to engage wth the commissioners and represent Natural Breaks and SME'S in relation to iairer fvnding dnd terms and conditions. Compllance with legislatlon and regulations specifically ensuring highest quality care and support. Mitigation Two of our senior managers hold CQC Registered Manager status and chair the Liverpool Registered r¥1anager forum. All regulated services are subject to health checks, an internal audit was conducted in 2023-24 and any aclions arising completed and reported through the Governance & Safeguarding Committee. Our Chief Executive and Senior Management team engage with local, regional and national forums and conferences to keep abreast of compliance. legislalive and regulatory developments. Compllance with leglslation and regulations specifically arising from Merseyside Fire & Rescue Service extending regulations to apply to supported living services delivered by all providers. Mltigation A specialist fire risk assessmeni provide.r has been engaged and a bi-annual survey programme is in operation, with assessments and actions being reported to the Irustees through the Governance & Safeguarding Committee 8 Staff turnover, our workforce is increasing in size and the overall profile is Changing. Mitigatlon - Recruitment siandards have not been diluted, our Welcome Day. Induction procedures and training have been adapted. Al staff received 'Back to Basics, training. Demographlcs of the people we support. an aging population and a tendency in older people to develop multi- heaSth issues requiring additional and specific support. Mitigatlon - the management team regularly review care plans and take a pro-active approach to agreeing changes to support arrangements with Adult Social servis. Mindful of.the need to consider our social Gare provision to both existing and new people in the future, the trustees with our C,.'ef Executive and all managers, are developing our'Natural Breaks 2030, strategy. Page 9
Natural Breaks Limlted Report of the Trustees for the Year Ended 31 March 2025 REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 02996621 (England and Wales) Reglstered Charlty number 1168733 Regibtered office Millennium Resour Centre Blenheim Stroet Liverpocl Merseysid& L5 8UX Trustees K C Lloyd I P M'eyer {resigned 25.4.24} Mrs J D Erskine R Itiokiet D G O'shaughnessy P H lQleston G Flanagan (relired by rotation 8.12.251 Company Secretsry Mrs K Burke Auditors SB&P Chartered Accryuntants & Statutory Audilors Oriel House 218 Or'el Road Boolle Merseyside L20 7EP STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees (who are also the directors of Natural Breaks Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and Ihe financial statements in accordance wlh applicable law and United Kingdom Accoynting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees lo prepare financial statements for each financial year. Under that law. the Iruslees have elected to prepare the financial statements in accordance wth United lQ'ngdom Generally Accepted Accounting Practice (United Kingdom kcountin9 Standards and applicable law). Under company law the trustees must not approve the financial statements unless Ihey are sakn'sfied that they give a true and fair view of the state of affairs of Ihe charitable company and of the incoming resources and application of resOurs, including the income and expenditure, of the charitable company for that period. In preparing those flnancial statements, the trustees are required to select suitable accounting policies and then apply them consistently- observe the methods and principles in the Charities SORP., make judgements and estimates that are reasonable and prudent., prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable ompany will continue in business. The trustee5 are resprjnsible for keeping proper accounting records which disclose wth reasonable accuracy at any time the financial position of '.le charitsble company and to enable thern to ensure that Ihe financial statements comply with the Companies Act 20Q6. They are also responsible for Safeguarding the assets of the charitable Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregulafilies. Page 10
Natural Breaks Limited Report of the Trustees for the Year Ended 31 March 2025 STATEMENT OF TRUSTEES, RESPONSIBILITIES - continued In so far as the trustees are aware.. there is no relevant audit infomalion of which the charitable company's auditors are unaware.. and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit infomiation and to establish that the auditors are aware of that 'nform tion. Approved by order of the board of trustees on ...... and signed on its behalf by.. K C Lloyd - Trustee Page 11
Report of the Independent Auditors to the Members of Natural Breaks Limited Opinion We have audited the financial statements of Natural Breaks Limiled {the 'charitable company'l 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 notes lo the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and Uniled Kingdom Accounting Standards {United Kingdom Generally AGcepled Accounting Practs'ce). In our opinion the financial ststements.. give a true and fair view of the state of the charitable company's affairs as at 31 March 2025 and of it5 incoming resource5 and application of resources, including its income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of Ihe Companies Act 20Q6. Basis for oplnlon We conducted our audit in accordance with International Stsndards on Auditing IUKI IISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are r#levant lo our audit of the financial statements in the UK, induding the FRC'S Ethical Standard, and we have fulfilled our other ethical respop,sibililies 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. Concluslons relating to golng concem 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 V¥ork 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 charitable company's ability to continue as a going concern for a period of at least iwelve Inonths from when the financial statements are authorised ft)r issue. Our responsibilities and the rèsponsibilities of the trustees with respect to going concern are described in the relevant sections of this report. other Information The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other Ihgn the financial statements and our Report of the Independent Auditors Ihereon. Our opinion on tte financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report. we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements. our responsibility is to read the other information and, in doing so, onside.r whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material incon51Stencies or apparent malerial misstatements, we are required to determine whether thi5 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 maletial misstatement of this other infomiation, we are required to report that fact. We have nothing to report in this regard. Opinions on olher matters prescrfbed by the Companles Act 2006 In our Opiiiion, based on the work undertaken in Ihe course of the audit.. the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statement5', and the Report of the Trustees has been prepared in accordance with applicable legal requirements. Page 12
Report of the Independent Auditors to the Members of Natural Breaks Limited Matters on which. we are requlred to report by exceptlon In the light of the knotwledge and understanding of Ihe charilable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees. We have nothing to report in respect of the following matters where Ihe Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting record5 have not been kept or retums adequate for our audit have not been received from branches not visited by us. or the financial statements are not in agreement with the accounting records and returns., or certain disclosures of trustees, remuneration specified by law are not made,. or we have not reIVed all the information and explanations we require for our audit.. or the trustee5 were not entled to take advantage of the small Companies exemption from the requirement lo prepare a Strategic Report or in pr&paring the Report of the Trustees. Responsibilitles of trustees As explained more fully in the Statement of Trustees, Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company lawl are responsible forthe 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 finan*ial 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 charitable company's ability to continue as a going cop.cern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the truslees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Page 13
Report of the Independent Audltors to the Members of Natural Breaks Llmlted Our responslbllltles for the audlt of the flnanclal statements Our obiectives are to obtain reasonable assurance about whether the finanaal statements as a whole are free from material misstatement. whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordan 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 bas,.s of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. The objectives of our audit are to identify and assess the risks of material misstatement of the financial slatemenls due to fraud or error. to obtain surfir.ipnt appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error.. and to respond r1pproprialely to those risks. Owing to the inherent limitab'ons of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even Ihough the audit Is properly planned and performed in accordance with the ISAS (UK). In identifying a,-,d assessing risk of material misstatement in respect of irregularities, including fraud and non-complian with laws and regUl?LI0nS, our procedures included the following.. We obtained an understanding of the legal and regulatory frameworks applicable to the Company and the sector in which il operates. V,le determined that the following saws and regulations were most significant.. The Companies Act 2006 Char ties Ar.12008 (accounts and reports regulations) harities Act 2011 Charities Sorp {FRS 102) 2019 UK corpoiate tax laws UK employment laws UK I iealth and safety regulations Care Quolity Commission Health and Social Care Act 2008 Health and Care Act 2022 We assessed the susceptibility of the Company's financial statements to matsriality misstatement, including how fraud might occur. Audit procedures perfomied by the audit engagement team inclvded.. idenkn'fying trie controls that management has in place to prevent and detect fraud., challenging assumptions and judgements made by management in its significant accounting eslim8tes', auditing the risk of management override of Gontrols, including through testing journal entrie5 and other .adjustmerits for appropriateness. and evaluating the business rationale of significant transactions outside the norma',.course of busines5', assessing the pxtent of compliance with the relevant laws and regulations. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at wMw.trc.org.ukJauditorsresponsibilities. This description forms part of our Report of the Independent Auditors. Page 14
Report of the Independent Audltors to the Members of Natural Breaks Llmited Use of our report This report is made solely to the charitable company's members, as a body, in accordan with Chapter 3 of Part 16 of the Compani¥iS Act 2006. Our audil work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors, report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responsibility to anyone other than the charitable company and the tharitable company's members as a body, or our audit work, for this report, or for the opinions we have fomied. Suzanne Draper FCCA ACA {Senior Ststutory Auditor) for and on behalf of SB&P Chartered Accountants & Statutory Auditors Oriel House 218 Oriel Road Bootle Merseyside L20 7EP Date.. 101(2120Lg Page 15
Natural Breaks Limited ststement of Financial Actlvlt]es Ilncorporatlng an Income and Expenditure Account) for the Year Ended 31 March 2025 31.3.25 Total funds 31.3.24 Total funds Unrestricted funds Restricted funds Notes INCOME AND CNDOWMENTS FROM Donations and legacies 17,099 463 17,562 17,943 Charitable actlvltles Supported Living 4,275,793 7,443 4,283,236 3,945.475 other trading activities Investment income 663 12,887 663 12,887 852 9,812 Total 4.306 442 7,906 4.314.348 3.974,082 EXPENDITURE ON Charitable activitie5 Supported Living 4 278 950 4,295 681 3.785.957 NET INCOMEI{EXPENDITURE) Transfers between funds 27,492 4,164) (8,825} 18,667 188,125 15 Net movement In funds 23,328 (4,6611 18,667 188.125 RECONCILIATION OF FUNDS Total funds brought forward 904,991 18,906 923,897 735,772 TOTAL FUNDS CARRIED FORWARD 928,319 14.245 942,564 923,897 The notes form part of these finanaal statements Page 16
Natural Breaks Lirnited Statement of Financial Posttion 31 March 2025 31.3.25 Total funds 31.3.24 Total funds Unreslricled funds Restricted funds Notes FIXED ASSETS Tangible assets 11 27,359 7,078 34,437 25,724 CURRENT ASSETS Debtors Cash at bank and in hand 12 398.018 841.573 398,018 848,740 404,988 730,088 1,239,591 7,167 1,246,758 1,135,076 CREDITORS Amounts falling due within one year 13 {338,6311 (338,6311 1236.9031 NEf CURRENT ASSETS 900,960 908,127 898,173 TOTAL ASSETS LESS CURRENT LIABILITIES 928.319 14,245 942,564 923,897 NET ASSETS 928,319 14.245 942,564 923.897 FUNDS Unrestricted funds Restricted funds 15 928,319 904,991 18,906 TOTAL FUNDS 942,564 923.897 These financial statements have been prepared in accordance with the provisions applicable lo charitable companies subject lo the small companies regime. The financial statements were approved by the Board of Trustees and authorised for issue on . were signed on its behalf by.. -and K C Lloyd - Trustee The notes fomi part of these financial statements Page 17
Natural Breaks Llmlted Statement of Cash Flows for the Year Ended 31 March 2025 31.3.25 31.3.24 Notes Cash flows frorn operating activltles Cash generated from operations 122 391 114.681 Net cash provided by operating activities 122 391 114,681 Cash flov from Investlng actlvltles Purchase of tangible fixed assets Interest rec 116,626) {5.856} 9.812 Net cash (used inllprovided by investing activities 3,956 Change in cash and cash equlvalents in the reporting period Cash and cash equivalents at the beginnlng of the reportlng perlod 118,652 118,637 730 088 611.451 Cash and cash equlvalents atthe end of the reportlng period 848,740 730.088 The note5 fonr part of these financial statements Page 18
Natural Brgaks Limited Notes to the Statement of Cash Flows for the Year Ended 31 March 2025 RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 31.3.25 31.3.24 Net Income for the reportlng perlod (as per the Statement of Financlal Activitles) Adjustments for: Depreciation charges Loss on disposal of fixed assets Interes• received Decreasel(increase) in debtors Increase in creditors 18,667 188,125 6,211 1,702 112,8871 6,970 101728 5,192 673 (9,812) 179,435} 9.938 Net cash provlded by operatlons 122,391 114,681 ANALYSIS OF CHANGES IN NET FUNDS At 1.4.24 Cash flow At 31.3.25 Net cash Lash, at bank and in hand 730,088 118,652 848,740 730,088 118652 848.740 Total 730 088 118,652 848 740 The notes form part of these financial statements Page 19
Natural Breaks Llmited Note5 to the Flnancial Statements for the Year Ended 31 March 2025 ACCOUNTING POLICIES Basls of preparing the flnanclal statements The financial statements ofthe charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities- Slalemenl of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102) (effective 1 January 2019),, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. Income All income is recognised in the Statement of Financial Activities once the charity has entitlement to the fijnds, it is probable that Ihe income wll be received and the amount can be measured reliably. Expenditure Liabilities are CogniSed as expenditure as soon as there is a legal or constwclive obligation committing the charity to that expenditiire, it is probable that a transfer of economic benefits wll be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Vvhere costs cannot be directly attributed lo particular headings they have been alloGatsd lo activities on a basis consistent with the use of resources. Allocation and apportionment of costs Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs. administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management. Where support costs Gannot be directly attributed lo particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent th use of the resources. The basis ol the allocation of premises overheads and other overheads is shown in note 5. Fund-i-aising costs are those incurred in seeking voluntary contribulions and do not include the costs of disseminating information in support of the tharitsble activities. The analysis of these costs is included in note 5. Tangible flxed assets Depreciation is provided at the following annual rates in order to write off each asset over its estimated usefijl life. Improvements to property Fixtures and fittings 20D/o on reducing balance Taxatlon The charity is exempt from corporation tax on its charitable activities. Fund accountlng Unrestricted fuiids can be used in accordance with the charitsble objectives at thè discretion of the Irustees. Restricted fundo can only be used for particular restricled purposes wthin the objects of the Gharity. Reslriclions arise when speGifierf by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to thè financial statements. Penslon costs and other post-retlrement benefits The charitable cotmpany operates a defined contribution pension scheme. Contributions payable to the Charitable company's pension scheme afft charged to the Statement of Financial Activities in the period to which they relate. Employee benefits When emploiioes have rendered service to the company, short-term employee benefits to which the employees are enlittes are recognised at the undiscounted amount expected to be paid in exchange for that service. Page 20 continued...
Natural Breaks Llmlted Notes to the Flnanclal Statements - contlnued for the Year Ended 31 March 2025 DONATIONS AND LEGACIES 31.3.25 31.3.24 Contributions to Activities Gift5 and donation5 12,040 12,181 5,762 17.943 OTHER TRADING ACTIVITIES 31.3.25 3fj.3.24 Fundraising events 663 852 INVESTMENT INCOME 31.3.25 31.3.24 Interest receivable 12.887 9,812 INCOME FROM CHARITABLE ACTIVITIES 31.3.25 31.3.24 Activity Supported Living Supported Ilving services Social Leamip.g Oulreach Income 3,862,283 3,551,145 Supported Living 420 953 394 330 4,283,236 3,945,475 CHARITABLE ACTIVITIES COSTS Support costs (see note 71 Direct Costs Totals Supported Living 3,519.994 775,687 4.295.681 SUPPORT COSTS Human resources Office costs Premises costs Govemanr costs Totals Supported Living 539 186 160.974 66,617 775 687 Page 21 continued...
Natural BrFaks Llmited Notes to the Financial Statements - contlnued for the Year Ended 31 March 2025 NET INCOMEIIEXPENDITURE) Net incomel(expenditure) is stated after chargingl{crediting)'. 31.3.25 31.3.24 Auditor¥ remdneration Depreaation - owned assets Deficit Gli disposal of fixed assets 7,795 6,211 1,702 7,560 5,192 673 TRUSTEES, REMUNERATION AND BENEFITS There were no trustees, remuneration or other benefits for the year ended 31 March 2025 nor for the year ended 31 March 2024. Trustses. expenses There weiE no trustees, expenses paid for the year ended 31 March 2025 nor for the year ended 31 March 2024. STAFF COSTS 10. 31.3.25 31.3.24 tvages and salaries Social security costs Other pension cosls 3,529,013 325,366 92.435 3,122,436 292.478 80,775 3,946,814 3,495,687 The average monthly number of employees during the year was as follows.. 31.3.25 130 31.3.24 120 Charitable activity staff The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was= 31.3.25 31.3.24 £60.001- £70,000 Page 22 continued...
Natural Breaks Llmited Notes to the Flnancial Statements . contlnued for the Year Ended 31 March 2025 11. TANGIBLE FIXED ASSETS Improvements lo propety Fixtures and fittings Totals COST At 1 April 2024 Additions Disposals 75,789 89,191 16,626 12 989) 164,980 16,626 12989) At 31 March ?.025 92,828 168,617 DEPRECIATION At 1 April 2024 Charge for year Eliminated on disposal 75,789 63,467 6,211 11,287) 139,256 6,211 11.2871 At 31 Mare.h 2025 NET BOOK VALUE At 31 MarcFI 2025 At 31 March 2024 25,724 25,724 12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.3.25 31.3.24 Trade debtors Other debtors Prepayments 347,290 17,285 349,144 33,922 21,922 398.018 404,988 13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.3.25 31.3.24 Pensions other creditors Accrua15 and deferred income 15,129 197,211 126,291 12.671 139.363 84.869 338 631 238,903 Page 23 continued...
Natural Breaks Llmited Notes to the Flnancial Statements - contlnued for the Year Ended 31 March 2025 14. LEASING AGREEMENTS .jr.imum lease payments under non-cancellable operating leases fall due as follows.. 31.3.25 31.3.24 Within one year Beeen one and five years 58,304 116,854 55,640 166.920 175,158 222,560 15. MOVEMENT IN FUNDS Net movement in funds Transfers between funds At 31.3.25 At 1.4.24 Unrestrlcted funds Gcaneral fund 904,991 27,492 14,1641 928,319 Restricted funds Caravan Funw. Take A Brpak Project 11,510 7,396 18,5961 4,164 7,078 7,167 18,906 8,825 4,164 14,245 TOTAL FUNDS 923,897 18,667 942.564 Net movement in funds, induded in the above are as follows.. Incoming resources Resources expended Movement in funds Unrestricted funds General fur,d 4,306,442 (4,278,950) 27,492 Restricted funds Caravan Fund Take A Break Project 3,906 4,000 (12,5021 18,596) 7.906 16.731 8,825 TOTAL FUNDS 4,314,348 4,295,681) 18.667 Page 24 continued...
Natural Breaks Limited Notes to the Flnancial Ststements - continued for the Year Ended 31 March 2025 15. MOVEMENT IN FUNDS- contlnued Comparatlves for movement in funds Net movement in funds Transfers between funds At 31.3.24 At 1.4.23 Unrestricted funds General fijnd 714,751 196.286 (6,046) 904,991 Restrlcted funds Caravan Fund Take A Break Project 11,509 9,512 (6,0451 6,046 11,510 7.396 21.021 8,161 18,906 TOTAL FUNDS 735 772 188.125 923.897 Comparative net movement in fvnds, included in the above are as follows.. Incoming resources Resources expended Movement in funds Unrestricted funds General fund 3,970.021 {3,773,735} 196,286 Restricted funds Caravan Fund Take A Break PrGject 1,670 2,391 {7,7151 4.507 16,045) 2.1161 4.061 12.222 TOTAL FUNDS 3.974.082 3,785,957) 188,125 16. RELATED PARf( DISCLOSURES There were no related paty transactions for the year ended 31 March 2025. UNRESTRICTED FUNDS 17. General fund - This fund may be used at the discretion of the board of trustees In furtherance of the charitsble company'5 objects. Page 25 continued...
Natural Breaks Llmited Notes to the Finanoial Statements - contlnued for tlie Year Ended 31 March 2025 18. RESTRICTED FUNDS Caravan Fund The fund was set up following consultation with beneficiaries of the charity and their families. The provision of acossible holidays and short breaks were identified as a valuable service that would benefit many. Receipt of a restricted donation, together wth general fundraising gave the charity the opportunity to purchase a 8 berth fvlly accessible caravan at Lyons Holiday Parks in Toywn, North Wales. It has been a hugely successful acquisition, giving well deserved opportunity and benefit to those we support. The balance of the fund represents the NBV of the caravan included in fixed asset5. Workforce CaL aci Grant receive.d to enable local authorities to deliver measures to supplement and strengthen adult social care staff capacity. Take a Break Pro ect To subsidize the cost of holidays, day trips and other centre activities ta enab5e service users to attend without the additional cost 19. TRANSFERS An amount of £6,046 has been transferred from General nd to Caravan fund as a contribution whlch represents expenses paid towards caravan costs incurred during the year. This page doe5 not forni part of the statutory financial 5tstements Page 26