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2025-08-31-accounts

Company registration number: CE020242 Charity registration number: 1187279

LEWISHAM ISLAMIC CENTRE TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

Green & Peter(UK) Ltd

Lewisham Islamic Centre Contents

Page
Trustees' Report 1—5
Independent Auditor's Report 6—8
Statement of Financial Activities (including Income and Expenditure Account) 9
Comparative Statement of Financial Activities (including Income and Expenditure Account) 10
Balance Sheet 11
Notes to the Financial Statements 12—19
The following pages do not form part of the statutory accounts:
Detailed Statement of Financial Activities (including Income and Expenditure Account) 20—21

Lewisham Islamic Centre Company No. CE020242 Trustees' Report For The Year Ended 31 August 2025

The trustees present their report and the financial statements for the year ended 31 August 2025.

Objectives and Activities

Aims and Objectives

The charity's objects are the furtherance of the religion of Islam and the furtherance of Islamic Education.

The Charity operates a mosque as a place of worship, to provide Islamic education to children and adults.

To provide spiritual, social, educational and moral support for Muslims and people of other faiths, of all ages, race and gender.

The advancement and a better understanding of the religion of Islam, specifically in the London Borough of Lewisham, its surrounding areas and nationally.

To foster better community relations and work for the betterment of society as a whole, including the provision of social welfare where possible.

The relief of poverty, and work towards the eradication of all forms of discrimination.

Promote such other charitable purposes as may from time to time be determined.

In pursuance of these objects, the Charity hosts a range of services and activities for the benefit of the public.

Public Benefit

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake. The Trustees confirm that they have complied with the duty in Section 4 of the Charities Act 2006 to have due regard to the Charity Commission's general guidance on public benefit Charities and Public Benefit.

We continued to offer a wide range of services for Muslims and non-Muslims, often in partnership with others. The Charity places strong emphasis on building relationships with others so we can work together for the common good.

The trustees confirm that they have complied with the requirements of Section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s guidance on public benefit.

Achievements and Performance

Main Achievements

The services and activities of LIC continue to run under the following departments:

Da’wah (Islamic Propagation) Office

This office is overall lead by the Centre Imam, who is supported by two other deputy Imams, who manage spiritual and moral development of the community through leading:

Education & Youth Development

LIC has a number of educational projects serving all sections of the community. The projects are run by professionals with the support of dedicated volunteers helping meet the needs of the community.

Lewisham Islamic Institute (LII) - is an evening and weekend supplementary school serving approximately 400 children aged 5 - 16 years old providing tuition in Quran and Islamic studies.

Adult Education & Halaqa - The Adult education focuses on Arabic classes for in the evenings and weekends provision in place for approximately 100 students.

Page 1

Lewisham Islamic Centre Trustees' Report (continued) For The Year Ended 31 August 2025

Additional Note

Community engagement

We are working on two fronts; providing events and activities that will engage and enthuse our community members and also working with partners and other bodies for the betterment of our centre.

LIC runs a youth club and supports a scout’s group and seniors football club for the over 40s.

There is a Mother & Toddler Group session with a weekly contribution of only £1 a week. The group runs every Thursday from 11am to 1pm in the community club. Mothers read Quran and stories to children and spend time talking and getting to know one another while partaking in activities. An average number of 8 – 10 sisters regularly attend.

Deen and Dinner is a monthly sisters-only social event for ladies to have fun and share food with crèche facilities for their children. This event has gained popularity and attracts between 30 – 50 every month.

In addition to the above activities, the centre also runs a free group for elderly women every Wednesday, and a winter soup kitchen to provide hot meals for the homeless within the borough.

All of these programs have helped to build and promote strong cohesion in the community. As an organisation of high repute, LIC commands the respect and admiration of other Mosques (local and farther afield), faith and civic groups because of its commitment and dedication to its community and its social outreach programs, and its use of infrastructure and experience to deliver tailored programs that foster unity.

Economic Growth & Development

LIC has provided space for local business to enable them to provide vital services for the community, specifically

An – Nur Gym – providing martial arts and self-defence classes for the public benefit (Muslims and non-Muslims alike), the services caters for male and female as well as holding special sessions for children

WOW bookshop – information hub and one stop shop for Islamic clothing, books and miscellaneous items.

Estate management – rental income from flats has been a vital source of income, at the same time we provided crucial service to the community by housing local authority refugee families.

The Charity has flats adjacent to the main mosque, these have been acquired for investment and will ultimately be part of the mosque's expansion programme. Currently it yields an income of circa £90k (2024-£85k) which gives a yield of 3% on an investment value of £1.6m, which is acceptable for the charity.

Financial Review

Financial Position

At the balance sheet date, the charity had net assets of £4,422,065 (2024-£4,059,688).

The trustees consider the financial performance of the charity during the year to be satisfactory.

Reserves Policy

It is the policy of the Charity that unrestricted funds which have not been designated for any specific use should be maintained at a level equivalent to between three and 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 Charity’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.

Risks

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.

The trustees acknowledge their responsibility to manage the risks faced by the charity. They have identified and given due consideration to the risks to which the charity may be exposed and are satisfied that systems are in place to mitigate exposure to those risks.

The Charity identifies and monitors risks in the areas of compliance, reputation, financial management, governance and operations, and puts in place measures to mitigate these risks, especially those deemed as major. These measures, backed by regular review, ensure strong protection of the charity.

...CONTINUED

Page 2

Lewisham Islamic Centre Trustees' Report (continued) For The Year Ended 31 August 2025

Reserves Policy - continued

Amongst the key measures the Charity has in place are:

DBS checks whenever appropriate for staff, volunteers and trustees

scrutiny of policies and procedures by the Governance, Compliance and Audit Committee regular monitoring by trustees of the reserves policy and the risk register all suitable insurance policies

Security is kept continuously under review. The Charity maintains close contacts with the local police force and other agencies, such as the Tension Monitoring Group.

Additional Note

Plans for future periods

We aim to consolidate and improve our end user services by utilizing our resources more efficiently.

The trustees are currently exploring the possibility of building a purpose-built Centre servicing all the Muslim community’s needs. Designs for the new building have been prepared for consultation with the community.

A new purpose built £10 million project was approved by the Trustees 11th June 2019 which will encompass a multipurpose Community and Religious Facility as well as a Residential Complex comprising a number of apartments.

The project is currently progressing through a formal planning proposal with the local council planning department who have expressed their support for the scheme. The design incorporates Islamic Architecture while opting for more modern building features in place of overt religious symbols such as domes or minarets.

The development seeks to replace an existing outdated facility which has served the community since the early 1980s.

The new centre will include prayer halls, a library, training centre, classrooms, lecture and multifunction halls, a cafe, crèche/nursery, and sports facilities.

Another key part of the development is an apartment block comprising of 1,2 and 3 bed apartments which will serve as a key driver to both fund the project and going forward as source of income for the LIC.

The development is now estimated to cost £10.5M and subject to the availability of funding and will take 2-3 years to complete.

Structure, Governance and Management

Governing Document

The Charity was formally registered as a Charitable Incorporated Organisation ("CIO") on 9 January 2020. The reporting period is for 12 months since the initial nil report. However this is the fifth period of activity of the Lewisham Islamic Centre Charity CIO and results presented are from the 1 September 2024 to 31st August 2025. The former unincorporated Charity was formally closed on the 28th February 2021 and an application to remove from the registrar of the Charities Commission has been made. All assets and liabilities from the Old Charity have been transferred to the new CIO registered Charity.

Trustee Selection Methods

The Trustees who served during the year and up to the date of signature of the financial statements were:

Mr Taofik Akande - Chairman Mr Zillur Rahman - Secretary Mr Ali Bajwa Mr Sameel Meer Mr Aminudeen Meer Mr Shakeel Begg Mr Mohamed Lamin Jalloh Mr Yacine Delilache Mr Ashraf Dabous (appointed 15/11/2025)

...CONTINUED

Page 3

Lewisham Islamic Centre Trustees' Report (continued) For The Year Ended 31 August 2025

Trustee Selection Methods - continued

The appointment of Trustees is set out in the constitution of the Charity. Trustees must be a practicing Muslims following the Sunni school of thought, must be a resident within the London Borough of Lewisham, or if the charity trustees wish to appoint someone who lives outside this Borough as a charity trustee, then this person must be able to establish an association with the LIC and must be unanimously appointed by all of the Charity's trustees.

Trustees set policy, processes and make financial decisions. The day-to-day management of the charity was delegated to the Chief Imam, who is also a Trustee, he is assisted in admin duties by an accountant, who is also a Trustee and admin manager who oversees staff and their duties and other administrative matters.

There is an induction program for new trustees, which includes reviewing key documents that are considered essential, and expectations for appropriate training are set out. The Board of Trustees typically meets every month to discuss the progress of the Charity and to consider any changes that may be necessary, arising out of review of results and other factors.

Reference and Administrative Details

Trustees

Mr Taofik Akande - Chairman Mr Zillur Rahman - Secretary Mr Ali Bajwa Mr Sameel Meer Mr Aminudeen Meer Mr Shakeel Begg Mr Mohamed Lamin Jalloh Mr Yacine Delilache Mr Ashraf Dabous (appointed 15/11/2025)

Charity Number

1187279

Company Number

CE020242

Registered Office

363-365 Lewisham High Street London England SE13 6NZ

Auditors

Green & Peter(UK) Ltd The Limes 1339 High Road London N20 9HR

Page 4

Lewisham Islamic Centre Trustees' Report (continued) For The Year Ended 31 August 2025

Statement of Trustees' Responsibilities

The trustees (who are also the directors of Lewisham Islamic Centre for the purposes 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. Under company law the trustees must not approve the financial statement unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing the financial statements the trustees are required to:

The trustees are responsible for keeping adequate accounting records which disclose with reasonable accuracy at anytime the financial position of the charitable company and to enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the 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.

Statement of Disclosure of Information to Auditors

Each of the persons who are trustees at the time when this trustees' report is approved has confirmed that:

Small Company Rules

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

The trustees' report was approved by the board of trustees and signed on its behalf by:

Mr Taofik Akande Mr Zillur Rahman Trustee Trustee 25/06/2026

Page 5

Independent Auditor's Report to the Members of Lewisham Islamic Centre

Opinion

We have audited the financial statements of Lewisham Islamic Centre (the "charity") for the year ended 31 August 2025 which comprise the Statement of Financial Activities (including Income and Expenditure Account), Balance Sheet and the related notes, 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

In our opinion the financial statements:

give a true and fair view of the state of the charitable company's affairs as at 31 August 2025 and of its incoming resources and application of resources, 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 the Companies Act 2006.

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 charitable company 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 the provisions available for small entities, in the circumstances set out in note 22 to the financial statements, 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 charitable company's ability to continue as a going concern for a period of at least 12 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 other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the 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 this 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 material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on Other Matters Prescribed by the Companies Act 2006

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

the information given in the Trustees' Report, which includes the Director's Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Director's Report included within the Trustees' Report have been prepared in accordance with applicable legal requirements.

Page 6

Independent Auditor's Report (continued) to the Members of Lewisham Islamic Centre

Matters on Which We Are Required to Report by Exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Director's Report included within the Trustees' 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

As explained more fully in the Trustees' Responsibilities Statement set out on page 1—5, the trustees (who are also 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 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 charity 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the Charity and the industry in which it operates, drawing on our sector experience and considered the risk of acts by the Charity that could be contrary to these laws and regulations, including fraud. We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including but not limited to, the Charity Commission, and other relevant laws and regulations.

We made enquiries of trustees, with regards to compliance with the above laws and regulations and corroborated any necessary evidence to relevant information, for example, minutes of the trustee meetings. legal reports provided to the Charity and correspondence between the Charity and its solicitors. Audit procedure performed by the engagement team included:

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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

Page 7

Independent Auditor's Report (continued) to the Members of Lewisham Islamic Centre

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

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 that 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.

Robert Green (Senior Statutory Auditor)

for and on behalf of Green & Peter (UK) Limited, Statutory Auditor

25/06/2026

Page 8

Lewisham Islamic Centre Statement of Financial Activities (including Income and Expenditure Account) For The Year Ended 31 August 2025

Notes
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3
Charitable activities:
Charitable rental income
Educational service fees
Worship service fees
Other trading activities
4
EXPENDITURE ON:
Charitable activities:
6
Accountancy and Audit Fees
Depreciation
Educational
Worship
Events and outreach
Staging fundraising events
NET INCOME
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
18		 Unrestricted
funds
£
457,875
90,634
-
1,200
48,524		 Restricted
funds
£
252,785
10,001
212,821
-
-		 2025
Total
funds
£
710,660
100,635
212,821
1,200
48,524		 2024
Total
funds
£
557,901
95,063
200,296
1,050
38,935
598,233 475,607 1,073,840 893,245
(4,000)
(1,541)
-
(485,400)
(12,086)
-		 -
-
(160,195)
-
-
(48,241)		 (4,000)
(1,541)
(160,195)
(485,400)
(12,086)
(48,241)		 (4,000)
(2,870)
(165,097)
(473,500)
(14,116)
(30,953)
(503,028) (208,435) (711,463) (690,536)
95,205 267,172 362,377 202,709
95,205
3,073,599		 267,172
986,089		 362,377
4,059,688		 202,709
3,856,979
3,168,804 1,253,261 4,422,065 4,059,688

The notes on pages 12 to 19 form part of these financial statements.

Page 9

Lewisham Islamic Centre Comparative Statement of Financial Activities (including Income and Expenditure Account) For The Year Ended 31 August 2025

Notes
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3
Charitable activities:
Charitable rental income
Educational service fees
Worship service fees
Other trading activities
4
EXPENDITURE ON:
Charitable activities:
6
Accountancy and Audit Fees
Depreciation
Educational
Worship
Events and outreach
Staging fundraising events
NET INCOME
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
18		 Unrestricted
funds
£
309,207
85,061
-
1,050
38,935		 Restricted
funds
£
248,694
10,002
200,296
-
-		 2024
Total
funds
£
557,901
95,063
200,296
1,050
38,935
434,253 458,992 893,245
(4,000)
(2,870)
-
(473,500)
(14,116)
-		 -
-
(165,097)
-
-
(30,953)		 (4,000)
(2,870)
(165,097)
(473,500)
(14,116)
(30,953)
(494,487) (196,049) (690,536)
(60,234) 262,943 202,709
(60,234)
3,133,833		 262,943
723,146		 202,709
3,856,979
3,073,599 986,089 4,059,688

The notes on pages 12 to 19 form part of these financial statements.

Page 10

Lewisham Islamic Centre Balance Sheet As At 31 August 2025

Notes
FIXED ASSETS
Tangible Assets
11
Investment Properties
12
CURRENT ASSETS
Debtors
13
Cash at bank and in hand
Creditors: Amounts Falling Due Within One Year
14
NET CURRENT ASSETS (LIABILITIES)
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
FUNDS OF THE CHARITY
Restricted Funds
Unrestricted Funds
TOTAL FUNDS
18		 Unrestricted
funds
£
1,191,907
1,615,000		 Restricted
funds
£
-
-		 2025
Total
funds
£
1,191,907
1,615,000		 2024
Total
funds
£
1,192,229
1,615,000
2,806,907
43,819
346,263		 -
-
1,253,261		 2,806,907
43,819
1,599,524		 2,807,229
30,072
1,248,200
390,082
(28,185)		 1,253,261
-		 1,643,343
(28,185)		 1,278,272
(25,813)
361,897 1,253,261 1,615,158 1,252,459
3,168,804 1,253,261 4,422,065 4,059,688
3,168,804 1,253,261 4,422,065 4,059,688
1,253,261
3,168,804		 986,089
3,073,599
4,422,065 4,059,688

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

On behalf of the board

Mr Taofik Akande Trustee 25/06/2026

Mr Zillur Rahman

Trustee

The notes on pages 12 to 19 form part of these financial statements.

Page 11

Lewisham Islamic Centre Notes to the Financial Statements For The Year Ended 31 August 2025

1. General Information

Lewisham Islamic Centre is a company limited by guarantee, incorporated in England & Wales, registered number CE020242 and registered charity number 1187279. The registered office is 363-365 Lewisham High Street, London, England, SE13 6NZ.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) "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)", Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

The charitable company is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

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 financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

2.2. Going Concern Disclosure

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.

2.3. Significant judgements and estimations

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 year in which the estimate is revised where the revision affects only that year, or in the year of the revision and future periods where the revision affects both current and future periods.

2.4. Fund Accounting

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.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Charity.

2.5. Incoming Resources

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.

Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Page 12

Lewisham Islamic Centre Notes to the Financial Statements (continued) For The Year Ended 31 August 2025

2.6. Resources Expended

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

2.7. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold Nil Plant & Machinery 25-33% on a reducing balance basis Fixtures & Fittings 25% on a reducing balance basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

2.8. Investment Properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

No depreciation is provided on the charity's freehold properties since in the opinion of the trustees the expected useful lives are sufficiently long and the estimated residual value values are sufficiently high that any such depreciation would be immaterial. The trustees undertake an annual impairment review of these properties.

2.9. Cash and Cash Equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.

2.10. 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.

...CONTINUED

Page 13

Lewisham Islamic Centre Notes to the Financial Statements (continued) For The Year Ended 31 August 2025

2.10. Financial Instruments - continued

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.

Derecognition of financial liabilities

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

2.11. Employee Benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock of fixed assets.

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 charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2.12. Pensions

The charitable company operates a defined pension contribution scheme. Contributions are charged to the Statement of Financial Activities as they become payable in accordance with the rules of the scheme.

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

2.13. Impairment of fixed assets

At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

3. Income from Donations and Legacies

Donations and gifts
Donations and gifts		 Unrestricted
funds
£
457,875		 Restricted
funds
£
252,785		 2025
Total
funds
£
710,660
Unrestricted
funds
£
309,207		 Restricted
funds
£
248,694		 2024
Total
funds
£
557,901

The following donations and legacies are included within the total income from donations and legacies above:

4. Income from Other Trading Activities

2025 2024
Unrestricted Unrestricted
funds funds
£ £
Fundraising events 48,524 38,935

Page 14

Lewisham Islamic Centre Notes to the Financial Statements (continued) For The Year Ended 31 August 2025

5. Net Income/(Expenditure)

The net income is stated after charging/(crediting):

Depreciation of tangible fixed assets - owned

2025 2024
£ £
1,541 2,870

6. Analysis of Expenditure

.
Analysis of Expenditure
Accountancy and Audit Fees
Depreciation
Educational
Worship
Events and outreach
Staging fundraising events
Accountancy and Audit Fees
Depreciation
Educational
Worship
Events and outreach
Staging fundraising events		 Activities
undertaken
directly
£
-
-
160,195
24,168
12,086
48,241		 Support
costs
(see note 7)
£
4,000
1,541
-
461,232
-
-		 2025
Total
£
4,000
1,541
160,195
485,400
12,086
48,241
244,690 466,773 711,463
Activities
undertaken
directly
£
-
-
165,097
22,511
14,116
30,953		 Support
costs
(see note 7)
£
4,000
2,870
-
450,989
-
-		 2024
Total
£
4,000
2,870
165,097
473,500
14,116
30,953
232,677 457,859 690,536

Educational

LIC has a number of educational projects serving all sections of the community. The projects are run by professionals with the support of dedicated volunteers helping meet the needs of the community.

Worship

This is lead by the Centre Imam, who is supported by two other deputy Imams, who manage spiritual and moral development of the community through leading daily prayers, weekly classes sermons, serving normally 5,000 congregants in a week and running an Imam's Surgery, which includes: counselling, Marriage solemnisation, dispute resolution.

Events and outreach

Working on two fronts; providing events and activities that will engage and enthuse our community members and also working with partners and other bodies for the betterment of our centre.

Page 15

Lewisham Islamic Centre Notes to the Financial Statements (continued) For The Year Ended 31 August 2025

7. Support Costs

Employee costs
Premises expenses
General administration
Depreciation
Governance costs
Employee costs
Premises expenses
General administration
Depreciation
Governance costs		 Accountancy
and Audit
Fees
£
-
-
-
-
4,000		 Depreciation
£
-
-
-
1,541
-		 Worship
£
317,623
53,234
90,375
-
-		 2025
Total
£
317,623
53,234
90,375
1,541
4,000
4,000 1,541 461,232 466,773
Accountancy
and Audit
Fees
£
-
-
-
-
4,000		 Depreciation
£
-
-
-
2,870
-		 Worship
£
278,245
53,313
119,431
-
-		 2024
Total
£
278,245
53,313
119,431
2,870
4,000
4,000 2,870 450,989 457,859

8. Auditor's Remuneration

Remuneration received by the charitable company's auditors and their associates during the year was as follows:

Audit Services
Audit of the company's financial statements
.
Staff Costs
taff costs were as follows:
Wages and salaries
Social security costs
Other pension costs		 2025
£
4,000
2025
£
444,844
31,590
3,926
480,360		 2024
£
4,000
2024
£
410,848
23,885
3,244
437,977

9. Staff Costs

Staff costs were as follows:

No employees received employee benefits (excluding employer pension costs) for the reporting period of more than £60,000.

Page 16

Lewisham Islamic Centre Notes to the Financial Statements (continued) For The Year Ended 31 August 2025

10. Average Number of Employees

Average number of employees during the year was as follows:

Administration
Education
Workship		 2025
10
30
1
41		 2024
10
30
1
41

11. Tangible Assets

Cost
As at 1 September 2024
Additions
As at 31 August 2025
Depreciation
As at 1 September 2024
Provided during the period
As at 31 August 2025
Net Book Value
As at 31 August 2025
As at 1 September 2024		 Land &
Property
Freehold
£
1,187,282
-		 Plant &
Machinery
£
63,187
-		 Fixtures &
Fittings
£
65,099
1,219		 Total
£
1,315,568
1,219
1,187,282 63,187 66,318 1,316,787
-
-		 63,187
-		 60,152
1,541		 123,339
1,541
- 63,187 61,693 124,880
1,187,282 - 4,625 1,191,907
1,187,282 - 4,947 1,192,229

12. Investment Property

2025

£

Fair Value

As at 1 September 2024 and 31 August 2025

1,615,000

Investment property comprises freehold property split into 5 flats, which are adjacent to the masjid, these are rented out. The fair value of the investment property has been arrived at on the basis of a valuation carried out at in Jun 2021 by the letting department of a local estate agents and valuers, who are not connected with the Charity. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

13. Debtors

Due within one year
Trade debtors
Other debtors		 2025
£
6,757
37,062
43,819		 2024
£
4,982
25,090
30,072

Page 17

Lewisham Islamic Centre Notes to the Financial Statements (continued) For The Year Ended 31 August 2025

14. Creditors: Amounts Falling Due Within One Year

4.
Creditors: Amounts Falling Due Within One Year
Trade creditors
Taxation and social security
Accruals and deferred income		 2025
£
3,743
892
23,550
28,185		 2024
£
1,846
-
23,967
25,813

15. Deferred Income

Deferred income movements in the year were as follows:

Balance at the start of the period
Income deferred in the current period
Balance at the end of the period		 2025
£
-
1,058		 2024
£
-
-
1,058 -

16. Capital Commitments

6.
Capital Commitments
2025 2024
£ £
At the end of the period 10,500,000 10,500,000

At the end of the period, the charitable company had capital commitments contracted for but not provided in these financial statements

At the balance sheet date the above projected capital commitments were approved by the trustees in relation to the development of a new building at the current site of the mosque and funds are being raised for this purpose. However at the year end planning permission had not yet been obtained nor had any contract been entered with any developer. The amount is considered to be for future planning and is disclosed for this purpose.

17. Pension Commitments

The charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.

During the year the charge to the statement of financial activities in respect of defined contribution schemes was £3,926 (2024: £3,244).

At the balance sheet date contributions of £NIL were due to the fund and are included in creditors.

18. Movement in Funds

Unrestricted funds
General:
General unrestricted fund
Restricted funds
Restricted Fund
Total funds		 As at 1
September
2024
£
3,073,599
986,089		 Income
£
598,233
475,607		 Expenditure
£
(503,028)
(208,435)		 As at 31
August 2025
£
3,168,804
1,253,261
4,059,688 1,073,840 (711,463) 4,422,065

Page 18

Lewisham Islamic Centre Notes to the Financial Statements (continued) For The Year Ended 31 August 2025

Unrestricted funds
General:
General unrestricted fund
Restricted funds
Restricted Fund
Total funds		 As at 1
September
2023
£
3,133,833
723,146		 Income
£
434,253
458,992		 Expenditure
£
(494,487)
(196,049)		 As at 31
August 2024
£
3,073,599
986,089
3,856,979 893,245 (690,536) 4,059,688

19. Transactions with Trustees

No remuneration or expenses were paid to any trustees for their services as trustees. The following trustees were employed by the charity and were remunerated for services provided.

Remuneration Pension
Contributions
£ £
Mr S Begg (Imam) 36,000 0
Mr Y Delilache (Bookkeeper) 11,637 0

20. Related Party Disclosures

There was one trustee who has children who attend the school operated by the Charity, the fees paid are the normal rate charged by the school.

21. Company limited by guarantee

The company is limited by guarantee and has no share capital.

Every member of the company undertakes to contribute to the assets of the company, in the event of a winding up, such an amount as may be required not exceeding £1.

22. FRC's Ethical Standard - Provision Available for Small Entities

In common with other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.

Page 19

Lewisham Islamic Centre Detailed Statement of Financial Activities (including Income and Expenditure Account) For The Year Ended 31 August 2025

INCOME AND ENDOWMENTS FROM:
Donations and legacies
Donations and gifts
Charitable Activities:
Charitable rental income
Income from charitable activities
Educational service fees
Income from charitable activities
Worship service fees
Income from charitable activities
Other trading activities
Fundraising events
EXPENDITURE ON:
Charitable Activities:
Accountancy and Audit Fees
Audit fees
Depreciation
Depreciation of plant and machinery
Depreciation of fixtures and fittings
Educational
Purchases
Wages and salaries
Employers NI
Employers pensions - defined contribution schemes
Travel and subsistence expenses
Recruitment costs
Vehicle parking costs
Repairs, renewals and maintenance
Data and telecommunications costs		 2025
Total
funds
£
710,660		 2024
Total
funds
£
557,901
557,901
95,063
95,063
200,296
200,296
1,050
1,050
38,935
38,935
893,245
(4,000)
(4,000)
(1,142)
(1,728)
(2,870)
(5,390)
(134,014)
(2,754)
(613)
(2,848)
(494)
(474)
(4,378)
(1,141)
...CONTINUED
710,660
100,635
100,635
212,821
212,821
1,200
1,200
48,524
48,524
1,073,840
(4,000)
(4,000)
-
(1,541)
(1,541)
(5,147)
(135,506)
(3,477)
(673)
(151)
(609)
(487)
(1,193)
(1,080)

Page 20

Lewisham Islamic Centre Detailed Statement of Financial Activities (including Income and Expenditure Account) (continued) For The Year Ended 31 August 2025

Printing, postage and stationery
Subscriptions
Bank charges
Worship
Wages and salaries
Other direct costs
Wages and salaries
Employers NI
Employers pensions - defined contributions scheme
Subcontractor costs
Recruitment costs
Rent
Rates
Light and heat
Water rates
Cleaning
Premises insurance
Other premises costs
Repairs, renewals and maintenance
Printing, postage and stationery
Telecommunications and data costs
Legal fees
Professional fees
Consultancy fees
Subscriptions
Bank charges
Other office costs
Entertaining
Events and outreach
Seeking grants
Other direct costs
Staging fundraising events
Staging fundraising events
NET INCOME		 (11,117)
(543)
(212)		 (9,319)
(3,476)
(196)
(160,195)
(23,818)
(350)
(285,520)
(28,113)
(3,253)
(540)
(197)
-
(2,582)
(28,629)
(7,517)
(9,987)
(3,284)
(1,235)
(9,847)
(5,918)
(9,535)
(11,446)
(34,069)
(4,306)
(4,372)
(6,061)
(2,820)
(2,001)		 (165,097)
(22,511)
-
(254,323)
(21,131)
(2,631)
-
(160)
(377)
(230)
(26,982)
(12,507)
(8,424)
(3,072)
(1,721)
(66,282)
(1,320)
(9,277)
(600)
(21,283)
(5,555)
(5,402)
(5,616)
(4,096)
-
(485,400)
(2,961)
(9,125)		 (473,500)
(519)
(13,597)
(12,086)
(48,241)		 (14,116)
(30,953)
(48,241) (30,953)
(711,463) (690,536)
362,377 202,709

Page 21