2024-12-31-accounts - Action For Happiness

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

Charity registration number 1175160 (England and Wales)

Company registration number 10722435

ACTION FOR HAPPINESS

(A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Ms J Bentley Ms V King Professor P Layard Dr R Modgil Mr M Nolet

Secretary

Secretary Mr M Williamson Charity number 1175160 Company number 10722435 Registered office WeWork 3 Waterhouse Square 138 Holborn London EC1N 2SW Independent examiner Jean Ellis BA FCA CTA DSG Castle Chambers 43 Castle Street Liverpool L2 9TL

ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) CONTENTS

	Page
Trustees' report	1 - 4
Statement of trustees' responsibilities	5
Independent examiner's report	6
Statement of financial activities	7
Balance sheet	8
Notes to the financial statements	10 - 18

ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024

The trustees present their annual report and financial statements for the year ended 31 December 2024.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

Action for Happiness is a charity which promotes mental health and wellbeing through the provision of information, evidence-based resources, public events, educational services, training and community activities.

Our vision is a happier and kinder society, with far fewer people suffering due to mental ill health or social isolation and far more people feeling good, functioning well and helping others. We are backed by leading experts and all of our activities are grounded in the latest scientific research.

Please note: The Action for Happiness project was originally launched in 2011, based within The Young Foundation (Registered Charity 274345). In 2017 Action for Happiness was established as an independent Company Limited by Guarantee (10722435) and registered charity (1175160) and on 31 December 2017 all assets, liabilities and Intellectual Property were transferred to the new entity.

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

Significant activities and achievements against objectives

Delivered the second year of our 5-year Strategic Plan agreed by Trustees for 2023-2027.
Grew our overall online reach to 30m people, with huge increases in social engagement.
Grew our member community by 92,000 people to a total of over 700,000 members.
Increased our in-year engagement to 82,000 people getting actively involved in activities.
Continued providing our successful action program of monthly calendars and daily action ideas, which have been used by over 50 million people.
Continued to grow our app community to over 250,000 registered users.
Held 21 live events with guest speakers attracting over 60,000 participants.
Recruited another 40,000 people to take our ‘10 Days of Happiness’ program, taking the total number of participants to over 150,000 to date.
Launched a new interactive action program for Optimistic October which led to clinically significant reductions in levels of anxiety.
Created and shared over 90 new video reels across our social media platforms.
Expanded our digital marketing and found lower-cost ways of reaching new beneficiaries.
Enhanced our online Volunteer Training program and recruited 1,000 new volunteers.
Scaled up delivery of our volunteer-led “Happiness Habits” community course with a new record of 220 courses delivered successfully, up from 80 and exceeding our target of 150.
1 -

ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

Achievements and performance ( continued )

Continued to support and deliver our network of volunteer-led online groups.
Launched a new page of enhanced resources to support Children and Young People.
Continued to support on-going local hubs including in Northampton and Brighton.
Continued to provide education, resources and training for organisations.
Continued to provide and enhance Safeguarding support, signposting and reporting.

Financial review

The year’s activities resulted in a surplus of £13,752 compared with a surplus of £35,832 in 2023, broadly in line with our expectations.

The total amount transferred by Gift Aid from the subsidiary company Action for Happiness Trading Limited for the year amounted to £2,749 (2023: £15,216). Minimal funds are retained in the subsidiary, the operating expenses of which are paid by the charity.

The principal sources of income to Action for Happiness during the year were:

Philanthropic giving by Action for Happiness supporters
Voluntary donations made by people attending live events and local courses
Grant funding

Reserves policy

It is the policy of the charitable company that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to at least six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charitable company’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Major risks

The charitable company maintains a Risk Register which is reviewed regularly by the Board. The Trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to the major risks.

ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

Plans for future periods

Outreach

Grow the AfH member community by a further 100,000 members in 2025.
Continue to deliver our interventions which have the strongest track record in reaching large numbers of people, notably our Website, Calendars with daily actions, Talks and App.
Continue creating engaging social content, but with more focus on conversion.
Deliver 1-2 focused public/media campaigns, including the International Day of Happiness.

Engagement

Continue to deliver and enhance our 10 Days of Happiness online program.
Engage new funders/partners to support development of new digital programs.
Explore potential integration of AI LLM technology into our engagement platform.

Community-Building

Maintain volunteer acquisition and continue delivery of courses, supported by more volunteer engagement, optimising course marketing and more face-to-face courses.
Review and refresh our provision and support for local groups.
Experiment with new ways to help people “go deeper” beyond courses and groups.

General

Continue to provide and adapt our Safeguarding processes and support as needed.
Raise additional funds to support our future scale-up plans.
Expand our Trustee Board to bring in additional skills and experience.

Structure, governance and management

The charity is a company limited by guarantee.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Ms J Bentley Ms V King Professor P Layard Dr R Modgil Mr M Nolet

Recruitment and appointment of trustees

The Board of Trustees has overall responsibility for the fulfilling the charity’s aims.

The recruitment and appointment of Trustees was based on ensuring an appropriate balance of expertise, skills and commitment to the mission of the charity. The Board of Trustees also anticipates appointing one or more additional Trustees during the years ahead to bring in additional skills and expertise as required.

Day to day management of the operation of the charity is delegated from the Board to the Chief Executive (Mark Williamson). The Board of Trustees meets at least once per quarter and the Chief Executive reports regularly to the Trustees on the operations, plans and financial position of the organisation, as appropriate.

Action for Happiness is supported by a range of contractors and volunteers to fulfil its mission. Contractors are recruited on a fixed term basis with the skills required to fulfil specific needs. All volunteers are carefully screened and supported in fulfilling their roles, for example in running courses in their local communities.

Qualifying third party indemnity provisions

All trustees are covered by the charity's professional indemnity insurance.

ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

Small company provisions

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

The trustees' report was approved by the Board of Trustees.

Professor P Layard

Trustee

6 June 2025

ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2024

The trustees, who are also the directors of Action for Happiness for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF ACTION FOR HAPPINESS

I report to the trustees on my examination of the financial statements of Action for Happiness (the charity) for the year ended 31 December 2024.

This report is made solely to the charity’s trustees, as a body, in accordance with section 145 of the Charities Act 2011. My work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in this report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for my work, for this report, or for the opinions I have formed.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law), you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006.

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000, the independent examiner must be a member of a body listed in section 145 of the Charities Act 2011. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

1 accounting records were not kept in respect of the charity as required by section 386 of the Companies Act 2006.
2 the financial statements do not accord with those records; or
3 the financial statements do not comply with the accounting requirements of section 396 of the Companies Act 2006 other than any requirement that the financial statements give a true and fair view, which is not a matter considered as part of an independent examination; or
4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

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

Jean Ellis BA FCA CTA

DSG Castle Chambers 43 Castle Street Liverpool L2 9TL

Dated: 6 June 2025

ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2024

		Unrestricted	Unrestricted
		funds	funds
		2024	2023
	Notes	£	£
Income and endowments from:
Donations and legacies	3	388,753	369,904
Charitable activities	4	126,530	83,441
Investments	5	29,797	21,393
Other income	6	356	185

Total income		545,436	474,923

Charitable activities	7	531,684	439,091

Total expenditure		531,684	439,091

Net income and movement in funds		13,752	35,832
Reconciliation of funds:
Fund balances at 1 January 2024		659,769	623,937

Fund balances at 31 December 2024		673,521	659,769

ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET

AS AT 31 DECEMBER 2024

		2024		2023
	Notes	£	£	£	£
Fixed assets
Investments	13		1		1
Current assets
Debtors	15	26,424		21,834
Cash at bank and in hand		688,175		707,700

		714,599		729,534
Creditors: amounts falling due within	16
one year		(41,079)		(69,766)

Net current assets			673,520		659,768

Total assets less current liabilities			673,521		659,769
The funds of the charity
Unrestricted funds	18		673,521		659,769

			673,521		659,769

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2024.

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

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the trustees on 6 June 2025

Professor P Layard

Trustee

Company registration number 10722435 (England and Wales)

ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2024

		2024		2023
	Notes	£	£	£	£
Cash flows from operating activities
Cash (absorbed by)/generated from	20
operations			(49,322)		67,206
Investing activities
Investment income received		29,797		21,393

Net cash generated from investing activities			29,797		21,393
Net cash generated from financing activities			-		-

Net (decrease)/increase in cash and cash
equivalents			(19,525)		88,599
Cash and cash equivalents at beginning of year			707,700		619,101

Cash and cash equivalents at end of year			688,175		707,700

ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

1 Accounting policies

Charity information

Action for Happiness is a private company limited by guarantee incorporated in England and Wales. The registered office is WeWork, 3 Waterhouse Square, 138 Holborn, London, EC1N 2SW.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

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

The accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The financial statements do not incorporate the results, assets and liabilities of the charity’s wholly owned subsidiary, Action for Happiness Trading Limited. Consolidated accounts have not been prepared as these would not be materially different from the single entity financial statements as presented.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

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

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

1.4 Income

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

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

10 -

ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

1 Accounting policies

(Continued)

1.5 Expenditure

Resources expended are included in the Statement of Financial Activities on an accruals basis, once there is a legal or constructive obligation to make a payment.

Charitable activities include the cost of providing courses and hosting events, and include both direct costs and support costs relating to these activities.

Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.

Support costs include central functions and have been allocated to charitable activities.

1.6 Fixed asset investments

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Investment in subsidiaries are measured at cost.

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8 Financial instruments

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

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

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

Basic financial assets

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

Basic financial liabilities

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

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

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

11 -

ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

1 Accounting policies

(Continued)

Derecognition of financial liabilities

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

1.9 Employee benefits

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

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10 Retirement benefits

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

1.11 Irrecoverable VAT

The charity is not required to register with HMRC for VAT. All resources expended are recognised gross of VAT.

2 Critical accounting estimates and judgements

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

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

3 Income from donations and legacies

	Unrestricted	Unrestricted
	funds	funds
	2024	2023
	£	£
Donations and gifts	248,378	319,904
Grants	140,375	50,000

	388,753	369,904
Grants
The Segelman Trust	50,000	50,000
Charles Engelhard Foundation	40,375	-
Dreamchasing	50,000	-

	140,375	50,000

12 -

ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

4 Income from charitable activities

	Unrestricted	Unrestricted
	funds	funds
	2024	2023
	£	£
Event income	58,371	57,010
Course income	66,917	25,490
Educational services	1,242	941

	126,530	83,441

5 Income from investments

	Unrestricted	Unrestricted
	funds	funds
	2024	2023
	£	£
Income from subsidiary	2,749	15,216
Interest receivable	27,048	6,177

	29,797	21,393

The charity owns 100% of the share capital of Action for Happiness Trading Limited which is a company limited by shares held for the purpose of delivering the charitable trading activities of the charity.

6 Other income

	Unrestricted	Unrestricted
	funds	funds
	2024	2023
	£	£
Other income	356	185

13 -

ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

7 Expenditure on charitable activities

	2024	2023
	£	£
Direct costs
Staff costs	214,738	210,249
Costs of providing courses	65,499	54,360
Event costs	18,701	16,380
Educational services	3,994	293
Communication	65,081	50,327
Community development	64,469	28,026

	432,482	359,635
Share of support and governance costs (see note 8)
Support	95,482	76,756
Governance	3,720	2,700

	531,684	439,091
Analysis by fund
Unrestricted funds	531,684	439,091
Support costs allocated to activities
	2024	2023
	£	£
Bank fees	337	227
General expenses	2,372	(1,457)
Online services	74,477	57,960
Printing and stationery	145	2,600
Travel	-	341
Rent	16,818	16,365
Insurance	1,333	-
Staff training	-	720
Governance costs	3,720	2,700

	99,202	79,456
Analysed between:
Charitable activities	99,202	79,456

8 Support costs allocated to activities

Governance costs includes payments to the independent examiner of £3,720 (2023: £2,700) for examination fees.

14 -

ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

Net movement in funds	2024	2023
	£	£
The net movement in funds is stated after charging/(crediting):
Fees payable for the independent examination of the charity's financial
statements	3,720	2,700

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year (2023: £nil). No trustees were reimbursed expenses during the year (2023: £nil).

11 Employees

The average monthly number of employees during the year was:

The average monthly number of employees during the year was:
	2024	2023
	Number	Number
Administration	2	2
Employment costs	2024	2023
	£	£
Wages and salaries	169,960	166,400
Social security costs	20,550	19,799
Other pension costs	24,228	24,050

	214,738	210,249

In addition to the 2 employees noted above, expenditure also includes payment to 4 subcontractors (2023: 2) giving a total workforce of 6 full time equivalents (FTEs)..

The number of employees whose annual remuneration was more than £60,000 is as follows:

The number of employees whose annual remuneration was more than £60,000 is as follows:
	2024	2023
	Number	Number
£120,001 to £130,000	1	1
Remuneration of key management personnel
	2024	2023
	£	£
Aggregate compensation	157,829	157,569

15 -

ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

12 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

13 Fixed asset investments

				Other
			investments
				£
Cost or valuation
At 1 January 2024 & 31 December 2024				1

Carrying amount
At 31 December 2024				1
At 31 December 2023				1
		2024		2023
Other investments comprise:	Notes	£		£
Investments in subsidiaries	14	1		1

This represents the investment in the subsidiary company, Action for Happiness Limited, which is owned by the charity for the purpose of delivering charitable activities.

14 Subsidiaries

Details of the charity's subsidiaries at 31 December 2024 are as follows:

Name of undertaking	Registered	Nature of business	Class of	% Held
	office		shares held	Direct Indirect
Action for Happiness	Wework, 3	Provision of services	Ordinary	100.00
Trading Limited	Waterhouse Square,
	138 Holborn, London,
	EC1N 2SW

During the year the turnover of Action for Happiness Trading Limited was £23,621 and expenditure incurred was £20,872 resulting in a profit of £2,749. All of the profit was distributed up to the charity in the period.

15 Debtors

Debtors
	2024	2023
Amounts falling due within one year:	£	£
Amounts owed by subsidiary undertakings	-	16,216
Other debtors	63	3,248
Prepayments and accrued income	26,361	2,370

	26,424	21,834

16 -

ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

15	Debtors		(Continued)
	Amounts owed by subsidiaries are interest free and repayable on demand.
16	Creditors: amounts falling due within one year
		2024	2023
		£	£
	Other taxation and social security	5,889	5,731
	Amounts owed to subsidiary undertakings	20,242	-
	Other creditors	14,948	12,836
	Accruals and deferred income	-	51,199

		41,079	69,766
	Amounts owed to subsidiaries are interest free and repayable on demand.
17	Retirement benefit schemes
		2024	2023
	Defined contribution schemes	£	£
	Charge to profit or loss in respect of defined contribution schemes	24,228	24,050

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

18 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

	At 1 January	At 1 January	Incoming	Incoming	Resources	Resources	At 31
		2024	resources		expended		December
							2024
		£		£		£	£
General funds		659,769		545,436	(531,684) 673,521
Previous year:	At 1 January		Incoming		Resources		At 31
		2023	resources		expended		December
							2023
		£		£		£	£
General funds		623,937		474,923	(439,091) 659,769

17 -

ACTION FOR HAPPINESS (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024

19 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

		2024		2023
		£		£
	Within one year	16,600		8,017
	Between two and five years	8,300		-

		24,900		8,017
20	Cash (absorbed by)/generated from operations	2024		2023
		£		£
	Surplus for the year	13,752		35,832
	Adjustments for:
	Investment income recognised in statement of financial activities	(29,797)	(21,393)
	Movements in working capital:
	(Increase)/decrease in debtors	(4,590)		1,217
	(Decrease)/increase in creditors	(28,687)		51,550

	Cash (absorbed by)/generated from operations	(49,322)		67,206

21 Related party transactions

The charity has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

18 -