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← The Productivity Group

2025-03-31-accounts

THE PRODUCTIVITY GROUP Trading as Be the Business

REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

Registered charity number: 1173660 Registered company number: 10754958

THE PRODUCTIVITY GROUP (Be the Business) CONTENTS FOR THE YEAR ENDED 31 MARCH 2025

CONTENTS Page
Reference and Administrative Details 1
Trustees’ Report 2 - 7
Statement of Trustees’ Responsibilities 8
Independent Auditors’ Report 9 - 11
Group Statement of Financial Activities 12
Group Balance Sheet 13
Charity Balance Sheet 14
Statement of Cash Flows 15
Notes to the Financial Statements 16 - 24

THE PRODUCTIVITY GROUP (Be the Business) REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2025

Company registration number

10754958

Charity registration number

1173660

Registered office

10 Queen Street Place London EC4R 1AG

Trustees

Tera Allas Jeremy Anderson Sir Charlie Mayfield (Chair) Hosein Khajeh-Hosseiny Michael Davis Appointed on 26[th] June 2024

Key management personnel

Anthony Impey – Chief Executive Officer

Bankers

Lloyds Bank 39 Threadneedle Street London EC2R 8AU

Auditors

HaysMac LLP 10 Queen Street Place London EC4R 1AG

1

THE PRODUCTIVITY GROUP (Be the Business) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2025

Introduction

The trustees, who are also the directors of the charity, have the pleasure in presenting their report together with the financial statements of The Productivity Group (Be the Business) for the year to 31 March 2025.

The reference and administrative information set out on page 1 forms part of this report. These financial statements comply with current statutory requirements, the charity’s memorandum and articles, applicable law and the Charities Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Second Edition, effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Objectives & activities

The charity’s objects are defined as the promotion of industry and commerce in the UK for the public benefit by promoting the productivity of business in order that the UK economy as a whole will benefit through improved business sustainability, employment security, job satisfaction and standards of living.

As an independent, private-sector-led charity, we exist to boost the productivity of UK businesses by creating practical, evidence-based support that drives better performance and delivers lasting impact. We achieve this by:

Following the conclusion of our grant funding from the Department for Business & Trade last year, we focused this financial year on diversifying and growing our income to continue delivering public benefit, by:

The trustees confirm that they have had due regard to the Charity Commission’s guidance on public benefit when planning the charity’s activities for the year.

Achievements & performance

2

THE PRODUCTIVITY GROUP (Be the Business) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2025

1 Impact of Be the Business SME Support; econometric evidence . SQW, September 2024 2 Calculated using the econometric evidence produced by SQW

3

THE PRODUCTIVITY GROUP (Be the Business) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2025

Financial review

Income

Total Income for the year was £3.02 million (2024: £12 million), including:

Over the past five years, we have recognised £31.5 million in pro-bono value, reflecting the strong ongoing commitment of our partners.

Expenditure

During the year the charity underwent a major one-off restructure relating to the ending of the Department of Business and Trade (DBT) grant, reducing headcount from 48 to 18 at year end and incurring other related costs totalling £162k. This strategic decision has streamlined operations and positioned the organisation to function more efficiently and sustainably.

The Group reported a £2.05 million net deficit for the year ended 31 March 2025 (2024: net deficit £796k). This was the result of timing for recognising grant income, restructuring costs, and the use of reserves to cover programme costs once grant funding had ceased. Total Expenditure fell significantly to £5.1 million (2024: £12.7 million), a 60% reduction. This includes £2.1 million in pro-bono support. Our major operational cost remains staffing, which decreased by 50% to £1.8m (2023: £3.6m).

A significant portion of our expenditure, £562k, related to our continuing support of businesses participating in programmes originally funded by the DBT grant, with the following active relationships ending throughout the year:

We operated two other significant grant-funded programmes with total related expenditure of £949k. In accordance with grant recognition rules, all related income for these programmes has been recognised in prior years. This expenditure accounts for 46% of the net deficit:

4

THE PRODUCTIVITY GROUP (Be the Business) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2025

At the year end the Group held a cash balance of £1.17 million. Combined with our leaner cost base, this provides the resources and flexibility needed to focus on building our sales strategy and securing long-term financial sustainability.

Commercial Trading subsidiary

The commercial subsidiary generated income of £0.6 million, with all taxable profits gifted to the charity under deed of donation. We anticipate growth in this area and have developed strong partnerships with BT, BAE, and the Construction Taskforce. Our focus remains on deepening these relationships and expanding our commercial reach.

Structure, governance and management

Structure

The Productivity Group is an independent registered charity (charity number 1173660), and a company limited by guarantee (company number 10754958). The charity is governed by the Articles of Association dated 30 June 2017 as amended by special resolution on 3 March 2025.

The trustees of The Productivity Group during the year to 31 March 2025 were Tera Allas, Jeremy Anderson, Hosein Khajeh-Hosseiny, Michael Davis, and Sir Charlie Mayfield.

The charity has a wholly owned commercial subsidiary – Be the Business Trading Limited (company number 10894488). The directors of the commercial subsidiary during the year to 31 March 2025 were Sir Charlie Mayfield, Patricia Blatherwick and Phil Smith.

Appointment of trustees and directors is independent of any third parties and is decided by the existing trustees and directors. The trustees and directors of each entity meet formally on a quarterly basis to review progress and assess the strategy.

Remuneration

Trustees are responsible for approving the pay and remuneration of key management personnel and agreeing annual staff pay increases, taking external benchmarking advice to inform their decisions.

Our salaries are benchmarked against similar roles in comparable charities, private sector businesses and other relevant organisations and they reflect the knowledge, skills, responsibilities and attributes required for the performance of each position.

Induction and training of Trustees

To equip new trustees with the information they need to perform their role effectively, they receive detailed information on their duties and responsibilities under Charity Law and follow a structured induction programme consisting of meetings with the senior management team and other key stakeholders. Trustees also undergo regular training as required.

How the charity makes decisions

Key strategic decisions are made by the trustees and are then delegated to the Senior Leadership Team for implementation.

Fundraising approach

During the year to 31 March 2025, revenue was generated from sales of services to private sector organisations, pro bono contributions from private sector organisations, and non-government grants.

The focus has been on building a pipeline of opportunities that generate private sector income and income from grant giving bodies, to enable us to be financially independent following the end of our funding from government at the end of the last year financial year.

Be the Business does not fundraise directly from members of the public.

Reserves Policy

5

THE PRODUCTIVITY GROUP (Be the Business) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2025

The Trustees have established a reserves policy in order to protect the organisation and its programmes from the risk of disruption at short notice due to a lack of funds, whilst ensuring that it does not retain income for longer than required.

In establishing the reserves policy, the Trustees have considered the following factors:

The requirements of our grant agreements with Mastercard Impact Fund and Nominet UK mean that these funds may only be used to generate restricted reserves.

Trustees determined that a target of £550k in unrestricted reserves was desirable for 2024/25 to mitigate any potential risks. Unrestricted reserves at 31 March 2025 were above target at £835k, (2024: £1,875k) which trustees have confirmed is appropriate given budget and investment needs for the years ahead.

As at 31 March 2025 the charity also holds £258k in restricted funds (2024: £1,263k), which are to be used for specific purposes as defined by funders.

Risk Management

Be the Business considers good risk management to be a key part of its operational requirements. As such, consideration is given to areas of activity where stakeholders or the reputation of the organisation are potentially vulnerable to adverse actions that could affect:

In formulating the view of risk, the trustees have specifically considered the following:

To manage these risks, a register is maintained and reported to the Trustees on an ongoing basis. Periodic monitoring also ensures that systems and procedures are being followed and that new risks are addressed and identified as they arise. External audits and internal reviews take place to assess the effectiveness of risk controls.

6

THE PRODUCTIVITY GROUP (Be the Business) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2025

Future Plans & Going Concern

This year was our first without grant funding from the Department for Business & Trade, which had previously accounted for a significant proportion of our income and strongly influenced our strategic direction.

In response, we restructured and reoriented the organisation to operate sustainably in a new funding environment, focusing on securing income from private sector partners and grant-makers, and developing propositions that meet the needs of our customers while remaining fully aligned with our charitable objects.

In the year ahead, we will build on this foundation with renewed momentum — extending our reach, amplifying our insights, and delivering greater public benefit.

Our priorities are to:

Through these priorities, we aim not only to diversify and grow our income, but also to ensure that our work consistently delivers measurable outcomes for the businesses we support, in line with our charitable purposes and the Charity Commission’s public benefit requirements.

Given the above, the Trustees are assured that the charity’s strategy and ambition are aligned to its founding principles. And having reviewed our financial position, reserves levels, and opportunity pipeline, they are confident that the organisation remains a going concern for the foreseeable future with sufficient reserves forecast for at least twelve months from the date of signing the accounts.

7

THE PRODUCTIVITY GROUP (Be the Business) TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2025

Statement of Trustees’ Responsibilities

The trustees (who are also directors of The Productivity Group for the purposes of Company law) are responsible for preparing the Trustees’ Report and financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company, including the incoming resources and the application of resources, including income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company, and which enable them to ensure that the financial statements comply with the Companies Act 2006. 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 irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

In so far as each of the trustees are aware at the time the report is approved:

Approved by the Board on 30 October 2025 and signed on its behalf by:

Sir Charlie Mayfield Chair of Trustees

8

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF THE PRODUCTIVITY GROUP

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF THE PRODUCTIVITY GROUP

Opinion

We have audited the financial statements of The Productivity Group for the year ended 31 March 2025 which comprise the Consolidated Statement of Financial Activities, the group and parent charitable company’s Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

9

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF THE PRODUCTIVITY GROUP

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the strategic report and the directors’ report).

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

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 2, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to compliance with the regulations of Employment law and Charity Law and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006, Charities Act 2011, Charities SORP (FRS 102) and considered other factors such as payroll tax.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks are related to the valuation of pro bono services and the recognition of grant income. Audit procedures performed by the engagement team included:

10

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF THE PRODUCTIVITY GROUP

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Thomas Wilson (Senior Statutory Auditor) For and on behalf of HaysMac LLP, Statutory Auditors

10 Queen Street Place London EC4R 1AG

Date: 06/11/2025

11

THE PRODUCTIVITY GROUP (Be the Business) GROUP STATEMENT OF FINANCIAL ACTIVITIES (incorporating an income and expenditure account) FOR THE YEAR ENDED 31 MARCH 2025

Notes
Unrestricted
Funds
£
Income and endowments from:
Donations and pro-bono support
2
698,444
Charitable activities:
DBT Grant
125,000
Other
131,223
Other Trading Income
3
625,820
Total Income
1,580,487
Expenditure on:
Charitable activities
4
2,621,110
Total Expenditure
2,621,110
Net (Expenditure)/ Income
7
(1,040,623)
Net Movement in funds
(1,040,623)
Reconciliation of funds
Total funds brought forward
1,875,264
Total funds carried forward
14
834,641		 Restricted
Funds
£
1,438,214
-
-
-
1,438,214
2,443,179
2,443,179
(1,004,965)
(1,004,965)
1,263,008
258,043		 Total 2025
£
2,136,658
125,000
131,233
625,820
3,018,701
5,064,289
5,064,289
(2,045,588)
(2,045,588)
3,138,272
1,092,684		 Total 2024
£
6,690,668
3,872,826
711,413
647,980
11,922,887
12,718,646
12,718,646
(795,759)
(795,759)
3,934,031
3,138,272

All the above results are derived from continuing activities. There are no recognised gains or losses other than those stated above.

Full comparative figures for the year ended 31 March 2024 are shown in note 19.

The notes on pages 16 to 24 form part of these financial statements.

12

THE PRODUCTIVITY GROUP (Be the Business) GROUP BALANCE SHEET AS AT 31 MARCH 2025

Company number 10754958

Notes
Fixed Assets
11
Total Fixed Assets
Current Assets
Debtors – amounts falling due within one year
12
Cash at Bank
Total Current Assets
Liabilities
Creditors: amounts falling due within one year
13
Net Current Assets
Total Assets less current liabilities
Total Net Assets
The funds of the charity:
Unrestricted funds
Restricted funds
Total Group Funds
15		 2025
2024
£
£
11,936
29,778
11,936
29,778
424,743
2,092,408
1,169,154
1,756,582
1,593,897
3,848,990
(513,149)
(740,496)
1,080,748
3,108,494
1,092,684
3,138,272
1,092,684
3,138,272
834,641
1,875,264
258,043
1,263,008
1,092,684
3,138,272

The company has taken the exemption allowed by section 408 of the Companies Act 2006, not to prepare a company only statement of financial activities. The net deficit for the charity for the year was £(2,045,588) (2024: net deficit of £(795,759)).

The notes on pages 16 to 24 form part of these financial statements.

The accounts were approved by the Trustees on 30 October 2025 and signed on their behalf by:

……………………………….

Sir Charlie Mayfield Chair

13

THE PRODUCTIVITY GROUP (Be the Business) CHARITY BALANCE SHEET AS AT 31 MARCH 2025

Company number 10754958

Notes
Fixed Assets
11
Total Fixed Assets
Current Assets
Debtors – amounts falling due within one year
12
Cash at Bank
Total Current Assets
Liabilities
Creditors: amounts falling due within one year
13
Net Current Assets
Total Assets less current liabilities
Total Net Assets
The funds of the charity:
Unrestricted funds
Restricted funds
Total Group Funds
15		 2025
£
11,936
11,936
1,139,113
100,349
1,239,462
(158,714)
1,080,748
1,092,684
1,092,684
834,641
258,043
1,092,684		 2024
£
29,778
29,778
2,768,780
1,026,915
3,795,695
(687,201)
3,108,494
3,138,272
3,138,272
1,875,264
1,263,008
3,138,272

The notes on pages 16 to 24 form part of these financial statements.

The accounts were approved by the Trustees on 30 October 2025 and signed on their behalf by:

……………………………….

Sir Charlie Mayfield Chair

14

THE PRODUCTIVITY GROUP (Be the Business) GROUP STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 MARCH 2025

Notes
2025
2024
£
£
Cash flows (used in) / from operating activities
A
(587,428)
(1,848,148)
Cash flows (used in) investing activities
Net purchase of tangible fixed assets
-
(5,402)
Change in cash and cash equivalents in the period
B
(587,428)
(1,853,550)
Cash and cash equivalents at the beginning of the period
1,756,582
3,610,132
Cash and cash equivalents at the end of the period
1,169,154
1,756,582
A. Reconciliation of net income to net cash flow
from operating activities
2025
2024
£
£
Net Income
(2,045,588)
(795,759)
Decrease/(Increase) in debtors
1,667,665
(686,273)
Decrease in creditors
(227,347)
(387,222)
Depreciation of fixed assets
17,842
21,106
Net Cash provided by operating activities
(587,428)
(1,848,148)
B. Analysis of changes in net cash funds
At 1 April
2024
Cashflows
At 31 March
2025
£
£
£
Cash in hand
1,756,582
(587,428)
1,169,154
Total cash and cash equivalents
1,756,582
(587,428)
1,169,154		 Notes
2025
2024
£
£
Cash flows (used in) / from operating activities
A
(587,428)
(1,848,148)
Cash flows (used in) investing activities
Net purchase of tangible fixed assets
-
(5,402)
Change in cash and cash equivalents in the period
B
(587,428)
(1,853,550)
Cash and cash equivalents at the beginning of the period
1,756,582
3,610,132
Cash and cash equivalents at the end of the period
1,169,154
1,756,582
A. Reconciliation of net income to net cash flow
from operating activities
2025
2024
£
£
Net Income
(2,045,588)
(795,759)
Decrease/(Increase) in debtors
1,667,665
(686,273)
Decrease in creditors
(227,347)
(387,222)
Depreciation of fixed assets
17,842
21,106
Net Cash provided by operating activities
(587,428)
(1,848,148)
B. Analysis of changes in net cash funds
At 1 April
2024
Cashflows
At 31 March
2025
£
£
£
Cash in hand
1,756,582
(587,428)
1,169,154
Total cash and cash equivalents
1,756,582
(587,428)
1,169,154		 2025
2024
£
£
(587,428)
(1,848,148)
-
(5,402)
(587,428)
(1,853,550)
1,756,582
3,610,132
1,169,154
1,756,582
2025
2024
£
£
1,667,665
(686,273)
(227,347)
(387,222)
17,842
21,106
(587,428)
(1,848,148)
Cashflows
At 31 March
2025
£ £
£
1,756,582 (587,428)
1,169,154
1,756,582 (587,428)
1,169,154

No separate reconciliation of net debt has been prepared as there is no difference between the net cash (debt) of the Charity and cash and cash equivalents.

15

THE PRODUCTIVITY GROUP (Be the Business) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

1. ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation and uncertainty in the preparation of the financial statements are as follows:

Basis of accounting

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice for Charities (FRS102) applicable to charities preparing accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Companies Act 2006 and the Charities Act 2011.

The charity meets the definition of a public benefit entity under FRS 102, with its objective to promote the productivity of business in order that the UK economy as a whole will benefit through improved business sustainability, employment security, job satisfaction and standards of living (see pages 2 and 3 for further details).

The charity has one subsidiary company, Be the Business Trading Ltd, registered in England and Wales under company number 10894488. The group accounts include the results of the subsidiary, consolidated on a line-byline basis.

General Information

The Productivity Group, trading as Be the Business, was incorporated in England and Wales on 4 May 2017 as a charitable company limited by guarantee (company number 10754958 and a charity registered in England and Wales (charity number 1173660). The registered office address is 10 Queen Street Place, London, England, EC4R 1AG and the charity operates from its principal address at 26-28 Glasshouse Yard, London EC1A 4JU.

Preparation of accounts on a going concern basis

The Trustees consider there are no material uncertainties about the charity’s ability to continue as a going concern. Operations have continued successfully to the date of signing these accounts, and the review of our financial position, funding discussions, reserves levels and future plans, Trustees have confidence that the charity remains a going concern for the foreseeable future.

Significant judgements and sources of estimation uncertainty

In preparing the financial statements management has made judgements, estimates and assumptions that affect the application of the charity’s accounting policies. The trustees consider that the key area of judgement in the accounts is the valuation of pro-bono support.

Pro-bono support is valued at the lower of the value of the donation to the charity and fair value and is recognised on receipt of the support. We are fortunate to receive a wide range of pro-bono support from a large number of sources which is valued on a prudent basis using appropriate estimation techniques. The rate card developed by management for recurring pro bono support is reviewed annually to test that the valuation assumptions remain appropriate. Material categories of support and the basis for valuation are as follows:

16

THE PRODUCTIVITY GROUP (Be the Business) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

1. ACCOUNTING POLICIES (continued)

Funds structure

Unrestricted income funds comprise those funds which the Trustees are free to use for any purpose in furtherance of the charitable objects. Designated funds are unrestricted funds earmarked by the Trustees for particular activities or purposes. Restricted funds are those funds which are to be used in accordance with specific instructions imposed by the donor or funder.

Income

All income is recognised once the charity has entitlement to income, it is probable that income will be received and the amount of income receivable can be measured reliably.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that the settlement will be required, and the amount of the obligation can be measured reliably. Expenditure includes attributable VAT which cannot be recovered.

Tangible Fixed Asset and Depreciation

All assets costing more than £500 are capitalised. Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their useful lives.

Computer Equipment 33.3% straight line.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount after allowing for any trade discounts due.

Pensions

The charity operates a defined contribution pension scheme for the benefit of its employees. The assets of the scheme are held independently from those of charity in an independently administered fund. The pensions costs charged in the financial statements represent the contributions payable during the period.

Employee short term benefits

Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.

Foreign exchange

Monetary assets and liabilities denominated in foreign currencies are translated at the period end rate of exchange. Transactions denominated in foreign currencies are translated at the rates prevailing at the transaction date.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

17

THE PRODUCTIVITY GROUP (Be the Business) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

2. DONATIONS & PRO-BONO SUPPORT
2025 2024
£ £
Programmatic Support 1,865,598 6,239,774
Movement building and campaigns - 4,920
Secondments - 30,234
Office space 196,300 390,000
Other pro-bono 74,760 25,740
--------------------- ---------------------
Total pro-bono 2,136,658 6,690,668
--------------------- ---------------------
3. OTHER TRADING INCOME 2025 2024
£ £
Commercial trading 625,820 647,980
--------------------- ---------------------
Total other income 625,820 647,980
--------------------- ---------------------
4. ANALYSIS OF EXPENDITURE 2025 Staff Direct Support
costs costs costs
Total 2025		 Total 2024
£ £ £ £ £
Movement building and Campaigns - - - - 2,465,757
Programmes 1,009,157 2,335,309 362,031
3,706,497		 8,350,721
Research and Insights 242,329 95,520 38,109 375,958 766,061
Innovation Lab 574,863 276,313 130,658 981,834 -
Digital tools - - - - 1,136,107
--------------------- --------------------- ---------------------
---------------------		 ---------------------
Total expenditure 1,826,349 2,707,142 530,798
5,064,289		 12,718,646
--------------------- --------------------- ---------------------
---------------------		 ---------------------
ANALYSIS OF EXPENDITURE 2024 Staff
Direct		 Support
costs
costs		 costs Total 2024 Total 2023
£
£ £ £ £
Movement building and Campaigns 1,286,221
886,469		 293,067 2,465,757 2,645,634
Programmes and Pilots 952,259
6,870,941		 527,521 8,350,721 6,202,265
Evaluation Research and Insights 502,614
199,505		 63,942 766,061 822,739
Digital tools 675,721
305,860		 154,526 1,136,107 1,252,065
---------------------
---------------------		 --------------------- --------------------- ---------------------
Total expenditure 3,416,815
8,262,775		 1,039,056 12,718,646 10,922,703
---------------------
---------------------		 --------------------- --------------------- ---------------------
5. SUPPORT COSTS 2025
2024
£
£
Staff related costs 116,308
397,935
Office costs 204,644
403,425
IT support 108,408
84,954
Professional fees 55,651
101,161
Depreciation 17,842
21,106
Realised currency gains 565
(27,785)
Irrecoverable VAT 27,380
58,260
----------------------
----------------------
530,798
1,039,056
----------------------
--------------------

18

THE PRODUCTIVITY GROUP (Be the Business) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

6. GOVERNANCE COSTS (included above) 2025 2024
£ £
Audit fees 23,030 22,650
Other services 1,200 12,410
----------------- -----------------
24,230 35,060
----------------- -----------------
7. NET INCOME / EXPENDITURE 2025
 2024
£
 £
Net income is stated after charging:
Auditors’ remuneration
Audit services 23,030 22,650
Other services 1,200 12,410
Depreciation 17,842 21,106
8. STAFF COSTS AND NUMBERS 2025 2024
£ £
Salaries and wages 1,477,039 2,809,251
Social security costs 154,754 309,913
Pension costs 134,976 255,609
Secondment and consultancy fees - 130,529
Other staff costs 59,580 69,786
--------------------- ---------------------
1,826,349 3,575,088
--------------------- ---------------------

Included in other staff costs are payments made on termination of £52,578 (2024: £42,042).

2025 2024
Average staff numbers (including secondees):
Movement building and Campaigns - 9.2
Programmes 13.3 16.5
Research and Insights 1.4 2.0
Digital tools - 4.8
Innovation Lab (formally Partnerships) 4.8 6.0
Finance & Operations (formally Administration staff) 2.8 12.4
--------------- -----------------
22.3 50.9
---------------- ----------------
Number of employees whose emoluments in the period were:
2025 2024
£60,000 - £69,999 6 4
£70,000 - £79,999 1 3
£80,000 - £89,999 - 2
£90,000 - £99,999 2 2
£110,000 - £119,999 - 2
£209,999 - £210,000 1 -
£270,000 - £279,999 - 1

Total remuneration of the key management personnel of the charity was £256,213 (2024: £460,181).

19

THE PRODUCTIVITY GROUP (Be the Business) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

9. TRUSTEES

No trustees received remuneration from the charity for their services (2024: none). No expenses were reimbursed to trustees in the period. (2024: none)

10. TAXATION

The charity is exempt from corporation tax as all its income is applied for charitable purposes. The charity’s trading subsidiary donates to the charity an amount equal to any taxable profits under Gift Aid. Consequently there is no taxation charge for the year (2024: £nil).

11. TANGIBLE FIXED ASSETS – CHARITY AND GROUP

2025 2024
£ £
Computer Equipment Cost at 1 April 96,519 91,117
Additions - 5,402
Disposals - -
--------------------- ---------------------
As at 31 March 96,519 96,519
Depreciation at 1 April 66,741 45,635
Charged in year 17,842 21,106
--------------------- ---------------------
As at 31 March 84,583 66,741
--------------------- ---------------------
Net book value at 31 March 11,936 29,778
--------------------- ---------------------

12. DEBTORS

EBTORS
Group Charity
2025 2024 2025 2024
£ £ £ £
Prepayments 22,295 55,020 19,539 55,020
Trade Debtors 210,265 403,870 31,395 360,370
Sundry Debtors - 6,547 - 6,547
Amounts owed by group undertakings - - 895,996 719,872
Accrued income 192,183 1,626,971 192,183 1,626,971
--------------------- --------------------- --------------------- ---------------------
424,743 2,092,408 1,139,113 2,768,780
--------------------- --------------------- --------------------- ---------------------

Accrued income of £nil (2024 - £nil) in both group and charity is due after more than one year.

13. CREDITORS – AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Group Charity Charity
2025 2024 2025 2024
£ £ £ £
Trade Creditors 104,214 494,836 92,040 494,036
Sundry Creditors - 2,840 - 2,840
Deferred income 354,671 46,420 23,750 -
Accruals 54,264 196,400 42,924 190,325
--------------------- --------------------- --------------------- ---------------------
513,149 740,496 158,714 687,201
--------------------- --------------------- --------------------- ---------------------

20

THE PRODUCTIVITY GROUP (Be the Business) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

14a. ANALYSIS OF NET ASSETS BETWEEN FUNDS – GROUP AND CHARITY 2025

Unrestricted Restricted Total 2025
funds funds
£ £ £
Fixed Assets 10,819 1,117 11,936
Current Assets 1,324,579 269,318 1,593,897
Creditors: amounts falling due within one year (500,757) (12,392) (513,149)
--------------------- --------------------- ---------------------
Net assets 834,641 258,043 1,092,684
--------------------- --------------------- ---------------------

14b. ANALYSIS OF NET ASSETS BETWEEN FUNDS – GROUP AND CHARITY 2024

Unrestricted Restricted Total 2024
funds funds
£ £ £
Fixed Assets 28,778 1,000 29,778
Current Assets 2,069,020 1,779,970 3,848,990
Creditors: amounts falling due within one year (222,534) (517,962) (740,496)
--------------------- --------------------- ---------------------
Net assets 1,875,264 1,263,008 3,138,272
--------------------- --------------------- ---------------------

15. NET MOVEMENT IN FUNDS – GROUP 2025

At 1 April Income Expenditure At 31
2024 March
2025
£ £ £ £
Restricted funds
Department for Business & Trade 41,334 - (41,334) -
Productivity through People 50,000 - - 50,000
Mastercard Impact Fund 445,719 - (403,178) 42,541
Ufi VocTech Trust 5,696 - (5,696) -
University of Manchester 8,972 - (8,972) -
University of Bath (Nominet UK) 711,287 - (545,785) 165,502
Other (Pro Bono) - 1,438,214 (1,438,214) -
Total restricted funds 1,263,008 1,438,214 (2,443,179) 258,043
Unrestricted funds
Charity 1,875,264 256,223 (1,296,846) 834,641
Subsidiary - 1,324,264 (1,324,264) -
Total unrestricted funds 1,875,264 1,580,487 (2,621,110) 834,641
--------------------- --------------------- --------------------- ---------------------
Total funds 3,138,272 3,018,701 (5,064,289) 1,092,684
--------------------- --------------------- --------------------- ---------------------

21

THE PRODUCTIVITY GROUP (Be the Business) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

The nature and purpose of each material restricted fund is as follows:

Department for Business & Trade

Productivity through People

Mastercard Impact Fund

University of Bath (Nominet UK)

Made up of 3 types of in-kind support:

15b. NET MOVEMENT IN FUNDS – GROUP 2024

At 1 April Income Expenditure At 31
2023 March
2024
£ £ £ £
Restricted funds
Department for Business & Trade 277,488 3,872,826 (4,108,980) 41,334
Productivity through People 50,000 - - 50,000
Mastercard Impact Fund 941,647 - (495,928) 445,719
Ufi VocTech Trust 40,056 (1,804) (32,556) 5,696
The University of Manchester - 24,970 (15,998) 8,972
The University of Bath (Nominet UK) 704,705 654,322 (647,740) 711,287
Scottish Enterprise 3,123 - (3,123) -
Other (Pro Bono) - 6,690,668 (6,690,668) -
Total restricted funds 2,017,019 11,240,982 (11,994,993) 1,263,008
Unrestricted funds
Charity 1,917,012 380,544 (422,292) 1,875,264
Subsidiary - 301,361 (301,361) -
Total unrestricted funds 1,917,012 681,905 (723,653) 1,875,264
--------------------- --------------------- --------------------- ---------------------
Total funds 3,934,031 11,922,887 (12,718,646) 3,138,272
--------------------- --------------------- --------------------- ---------------------

22

THE PRODUCTIVITY GROUP (Be the Business) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

16. NET MOVEMENT IN FUNDS – CHARITY 2025

At 1 April Income Expenditure Gift Aid At 31 March
2024 Transfer 2025
£ £ £ £
Restricted funds 1,263,008 1,438,214 (2,443,179) - 258,043
Unrestricted funds 1,875,264 256,223 (1,922,846) 145,196 834,641
--------------------- --------------------- --------------------- --------------------- ---------------------
Total funds 3,138,272 1,694,437 (3,885,221) 145,196 1,092,684
--------------------- --------------------- --------------------- --------------------- ---------------------

17. TRADING SUBSIDIARY

The charity owns 100% of the share capital of Be the Business Trading Limited, company number 10894488, (registered in England and Wales). The results for the year to 31 March 2025 are shown below.

2025 2024
£ £
Turnover 1,324,264 653,685
Administrative costs (including intercompany recharge) (1,179,068) (284,343)
--------------------- ---------------------
Net profit before taxation 145,196 352,324
--------------------- ---------------------
Net current assets 1 1
--------------------- ---------------------

100% of the trading subsidiary’s taxable profits of £145,196, (2024: £352,324) are donated to the parent under the existing deed of covenant.

18. RELATED PARTY TRANSACTIONS

During the year, overhead expenditure of £113,113 (2024: £72,238) has been recharged to the subsidiary Be the Business Trading Ltd. £276,876 (2024: £119,927) was also recharged to the subsidiary for staff costs during the year.

At 31 March 2025, an amount of £895,997 (2024: £719871) is owed to The Productivity Group by Be the Business Trading Limited. This figure includes gift aid of £145,196 (2023: £352,324).

23

THE PRODUCTIVITY GROUP (Be the Business) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

19. GROUP STATEMENT OF FINANCIAL ACTIVITIES 2024

Notes
Unrestricted
Funds
£
Income and endowments from:
Donations and legacies
2
-
Charitable activities:
DBT Grant
-
Other
33,925
Other Trading Income
3
647,980
Total Income
681,905
Expenditure on:
Charitable activities
723,653
Total Expenditure
4
723,653
Net Income/(Expenditure)
7
(41,748)
Net Movement in funds
(41,748)
Reconciliation of funds
Total funds brought forward
1,917,012
Total funds carried forward
13
1,875,264		 Restricted
Funds
£
6,690,668
3,872,826
677,488
-
11,240,982
11,994,993
11,994,993
(754,011)
(754,011)
2,017,019
1,263,008		 Total 2024
£
6,690,668
3,872,826
711,413
647,980
11,922,887
12,718,646
12,718,646
(795,759)
(795,759)
3,934,031
3,138,272

All the above results are derived from continuing activities. There are no recognised gains or losses other than those stated above.

24