2025-03-31-accounts

Docusign Envelope ID: 945DFFD0-3283-4AA3-A3A9-1AB9C1B78E58

GRIMSBY YOUTH ZONE

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

Charity Number: 1187630 Company Number: 12210018

Docusign Envelope ID: 945DFFD0-3283-4AA3-A3A9-1AB9C1B78E58

GRIMSBY YOUTH ZONE

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

Contents	Page
Reference and administrative information	1
Trustees’ report	2-7
Independent auditor’s report	8-10
Statement of financial activities	11
Balance sheet	12
Statement of cash flows	13
Notes to the financial statements	14-21

Docusign Envelope ID: 945DFFD0-3283-4AA3-A3A9-1AB9C1B78E58

GRIMSBY YOUTH ZONE Reference and Administrative Information for the year ended 31 March 2025

Trustees

C Jensen Dr M Osman J Stockwood S Critchlow D Cook M Parker A Ottley S Wroot David Barton (appointed 7 November 2024) G Alton OBE (resigned 14 April 2024) H Kanakides (resigned 7 November 2024)

Key Management Personnel

The Trustees Lucy Ottewell-Key

Company registered number

12210018

Charity registered number

1187630

Registered office

C/O Wilkin Chapman LLP, Cartergate House, 26 Chantry Lane, Grimsby DN31 2LJ

Chief executive officer

Lucy Ottewell-Key

Auditor

Xeinadin Audit Limited, 5 Robin Hood Lane, Sutton SM1 2SW

Bankers

Handelsbanken, Grimsby Branch, Unit 7 Europa Park, Appian Way, Grimsby DN31 2UT

Solicitors

Wilkin Chapman LLP, Cartergate House, 26 Chantry Lane, Grimsby DN31 2LJ

Trading name

Horizon Youth Zone

Website

http://www.horizonyouthzone.org/

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GRIMSBY YOUTH ZONE Trustees’ Report for the year ended 31 March 2025 (continued)

The Trustees, who are also Directors of the company, present their Directors' report for the purposes of section 417 of the Companies Act 2006 and Trustees' Annual Report for the purposes of section 162 of the Charities Act 2011 together with the Financial Statements of the Charity for the year ending 31 March 2025.

Grimsby Youth Zone was incorporated on 16 September 2019 (Company registration number: 12210018) as a company limited by guarantee and registered as a Charity on 28 January 2020 (Charity registration number: 1187630).

Who we are

Grimsby Youth Zone, named by young people as 'Horizon', will be a purpose-built youth zone for young people from Grimsby and the surrounding area. Located in the heart of Grimsby, the new facility will be on the site of the former West Haven Mailings and Migar House buildings, fronting onto the River Freshney. It will be a safe and inspiring place for young people aged 8 - 19, and up to 25 for those with additional needs and disabilities, to enjoy their leisure time and access opportunities to discover their passions and their purpose.

Horizon is based upon the successful OnSide 'Youth Zone' model, where members will have access to state-ofthe-art facilities for a cost of £5 per year and only 50p per visit. Inside the Youth Zone young people will have a choice of over 20 fun and engaging activities every session, including sports, arts, music, media, dance, drama, cooking, employability, and enterprise workshops. and much more.

Horizon Youth Zone is being delivered in partnership with OnSide and North East Lincolnshire Council and is supported by a number of businesses, philanthropists, and charitable foundations.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Grimsby Youth Zone is a company limited by guarantee without share capital and registered under the Companies Act 2006, registration number 12210018. The company is governed by its Memorandum and Articles of Association dated 16 September 2019. Management of the company’s affairs is vested in the co- Directors. It is a Charity registered with the Charity Commission on 28 January 2020.

In the event of a winding-up, the present members and those who have ceased to be a member within one year of such an event have guaranteed the liabilities of the company to the sum not exceeding ten pounds each.

Recruitment and appointment of Trustees

The first Directors were the subscribers to the memorandum as notified to Companies House as the first Directors of the Charity. A person appointed as a director thereupon becomes a Member of the Charity and a Directors who ceases to hold office for any reason thereupon ceases to be a Member of the Charity. Directors have the power to appoint, by ordinary resolution, any person to be a director who is willing to act as such. New Directors will be recruited according to the needs of the Charity and the suitability of possible candidates. A unanimous approval of existing Directors would lead to their appointment.

Trustees are trained through a Board Development Day before the Youth Zone opens, providing a complete overview on Governance, Safeguarding, Fundraising and overseeing the Youth Zone’s offer; and also offered a series of monthly masterclasses covering all aspects of a Youth Zone’s operations from a Trustee’s perspective.

The Memorandum and Articles of Association states that the number of members (Directors) shall have no maximum and shall not be less than three. At the first Annual General Meeting all Directors must retire and seek re-election. At each subsequent Annual General Meeting one third of the Directors are required to retire by rotation and seek re-appointment if they wish to continue.

The Members of the Charity are its directors for the time being and the only persons eligible to be Members of the Charity are its Directors.

Full details of the rules are contained in the Charity's Memorandum and Articles of Association, dated incorporation on 16 September 2019, which may be inspected at the Grimsby Youth Zone registered office.

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GRIMSBY YOUTH ZONE Trustees’ Report for the year ended 31 March 2025 (continued)

Organisational Structure

Grimsby Youth Zone is governed by its Trustee Board which is responsible for setting the strategic direction of the organisation and the policy of the Charity. The Trustees carry the ultimate responsibility for the conduct of Grimsby Youth Zone and for ensuring that the Charity satisfies its legal and contractual obligations. Trustees meet approximately every two to three months and may delegate the implementation of their decisions or day-to day operation of the organisation to senior management, any employee of the Charity, person, or committee as they see fit. Any committee must include at least one Trustee.

The Trustee Board is independent from management. Decisions are determined by a simple majority of votes. In the case of an equality of votes the Chair of the meeting has the casting vote.

Pay policy

The Directors, who are the charity’s Trustees, and the senior management team who are the key management personnel, are in charge of directing and controlling, running and operating the charity on a day to day basis. All Directors give their time freely and no Directors receive remuneration in the year.

The pay of the full staff team will be reviewed annually by the Finance, Audit and Remuneration Committee, who will make a recommendation to the full board for decision. No annual pay rises were agreed by the board prior to March 25, with the board approving its first annual pay rise for employees with over 2 years service from April 2025.

We expect the only other pay increases will take place for changes of role or responsibilities or in line with probationary agreements. The Directors benchmark salaries against other similar charities in the voluntary sector as well as across all the Youth Zone network. All changes to pay and remuneration are formally approved by the Finance, remuneration and Audit Committee and then ratified by the full board.

Risk management

The Trustees have considered and identified the major risks to which the Charity is exposed through the risk register and have established suitable risk management and control procedures. The main risks and controls are as follows:

1. Fundraising Income Target Not Met: If income does not meet the required levels prior to opening, the there is a risk that within the first 4 years of operation the operating budget may fall into deficit. Mitigating actions: Senior Philanthropy Manager is in post supported by Onside’s Head of Fundraising with clear KPI to manage and assess progress. Local Head of Fundraising and Communications was appointed towards the end of the financial year although will not start in post until April 25.

2. Cost of Living and Inflation : Rising costs, particularly for wages, increased employer National Insurance contributions and utilities, could increase the Youth Zone's operational expenses. Mitigating actions include conducting a wage benchmarking exercise that will be reviewed regularly and revising the operating model based on learnings from the OnSide network of Youth Zones to ensure the most sustainable delivery model is implemented.

3. Project Delays Due to Complications: Delays in the project could potentially jeopardize the timely use of restricted capital funding and delay opening. Mitigating actions: Involve profiling restricted capital to be spent ahead of unrestricted funds and ensuring expenditure occurs within the funders' specified timelines. Onside’s Property and Construction team has a project manager in place to monitor contractor progress and manage potential delays. Clear and concise internal and external communications to manage local community expectations

OBJECTIVE AND ACTIVITIES

Vision

At Horizon Youth Zone, our purpose is to create positive opportunities for children and young people across North-East Lincolnshire. This includes, having fun, making friends and realising their ambitions.

Mission

To create a safe and inclusive environment where every child and young person can discover their passion, unlock their potential, find their purpose, have fun, and raise their ambitions.

Through a community-based approach, we offer a diverse range of activities and opportunities that empower children and young people to thrive, fostering their well-being, resilience, and a sense of belonging. We will help

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GRIMSBY YOUTH ZONE Trustees’ Report for the year ended 31 March 2025 (continued)

children and young people to be healthier, happier and lead more caring lives, enabling a brighter future for themselves, their families and our community.

We will meet our mission by:

•Delivering universal youth work at scale and to a high standard with junior, senior and inclusivity sessions that meet the need of the community and respond to young people’s voice.

•Having a well-trained staff team, representative of the local community with clear support mechanisms, processes and procedures in place to run an effective Youth Zone.

•Having an ambitious culture for staff and young people. Celebrating success and rewarding achievements.

•Offering a diverse range of activities across sports, arts, crafts fashion, performing arts, music, film and multimedia, trips, enterprise and employability, life skills, health and wellbeing.

•A collaborative and community-based approach, working in partnership with key stakeholders, including young people, parents, residents, community organisations, patrons, local council, public sector agencies, staff and Onside.

•A strategic focus on employability, enterprise and entrepreneurship supporting young people to access support, information and knowledge share in partnership with local education providers and employers.

• •Help to bring about a sense of pride of place for young people, a celebration of heritage though the arts.

•Support geographic inclusivity, increasing social mobility and raising aspirations across North East Lincolnshire.

•Help young people to raise aspirations and make good decisions.

• •Robust and effective evaluation and youth voice strategies.

ACHIEVEMENTS AND PERFORMANCE

Construction and Capital Fundraising

Construction has progressed at pace during the year ending March 2025. Following Environment agency approval and with ongoing liaison with Historic England and North East Lincolnshire Council the Youth Zone build is well on its way to meet its practical completion deadline of summer 2025.

• Sports Hall – The construction works to the Sports Hall are on programme.

• River Wall –The brickwork to the river wall is 90% complete and the timber window panels are currently being approved by Historic England. Beams installation started on the 23rd of January 2025.

• North Wall/Performing Arts/Climbing Wall/Plantroom–Once the roof has been made weathertight and the bricks dried out, the wall will be treated with a clear sealant. The external cladding works to the Performing Arts/Climbing Wall and Plantroom have been completed.

• Migar House – The internal works to Migar House are well underway. The external brickwork replacement has been completed on the east and west elevation.

Over £13.5 million has been secured from a range of funders towards the capital project costs. These include the Architectural Heritage Fund, Department for Culture, Media & Sport's Youth Investment Fund, Greencoat UK Wind, Historic England, the National Lottery Heritage Fund, North East Lincolnshire Council, Ørsted, St James's Place Charitable Foundation, as well as several anonymous donors. The Horizon Youth Zone Board and project team are hugely grateful for this substantial support which has this year enabled the construction phase to advance with momentum.

Revenue Fundraising

The board is also grateful to the growing Founder Patron family which provides essential operating revenue for the Youth Zone. We are very grateful to Allied Protek Engineering Ltd, the Bentham family, Dee Bee Wholesale Ltd, DFDS Seaways, Evergreen, the Francis Arthur Brookes Charitable Trust, Greencoat UK Wind, the Humberside Police & Crime Commissioner, Myenergi Ltd, Ørsted, Andrew Pettit, Prax Roots Foundation, Simon Smith, Lorna and Jason Stockwood, Lincolnshire Cooperative. Phillips 66, Asos Foundation and Tronox who have all pledged generous long-term commitments to Horizon. Financial support from Novartis UK, Wilkin Chapman Rollits and Walwyn Chapman Charitable Trust, The Newby Trust, JCS Fish and Daniella Draper has also been committed towards Horizon's operating costs.

Together, these philanthropic partners continue to be instrumental in setting the Youth Zone up on a sustainable footing and in helping to attract further funding.

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GRIMSBY YOUTH ZONE Trustees’ Report for the year ended 31 March 2025 (continued)

Community Engagement

There is a real and growing sense of momentum building across the borough, with Horizon Youth Zone increasingly recognised as a vital and exciting development for young people in our community. The sense that “Horizon is happening” is resonating across sectors, with engagement and support reaching new heights.

Our commitment to meaningful partnership continues to deepen. We are active in local networks and forums, working collaboratively across the youth, voluntary and statutory sectors to ensure Horizon remains a shared and inclusive effort. These connections are not only raising awareness but fostering a genuine sense of ownership and excitement within the community.

We’ve embedded ourselves further within the local landscape—physically, through our presence in the business community, and culturally, through participation in events, outreach, and creative projects that reflect the diversity and identity of the area.

Community engagement is not only wide-reaching but heartfelt. Young people, schools, families, and partners across sectors are responding with enthusiasm and belief in what Horizon represents. Our visibility continues to grow, and with it, a powerful sense of shared purpose.

Recruitment

The past financial year has seen significant progress in building the Horizon Youth Zone team, marking a critical step toward our successful opening.

A major milestone was the appointment of members of our senior team providing strategic leadership for our frontline youth work delivery and HR. This was followed by an Arts and Heritage Coordinator.

Young People

The voice of young people has continued to shape and influence the project to ensure it meets the needs of local young people, through the "Young People's Development Group (YPDG)," a participation and leadership group for local youth. This group plays a crucial role in guiding the project's direction, ensuring that it remains relevant and responsive to the unique challenges and aspirations of the young people in the community and is supported by a brilliant team inclusive of a YPDG Youth Worker and volunteers.

Horizon Youth Zone benefits from the support of OnSide (charity number 1125893) in its development and will become a member of the growing OnSide network of Youth Zones.

Public benefit

All the activities of the Charity (as summarised above) were undertaken to further its charitable purposes for public benefit. The provision of a high-quality facility for young people responds to a clear, ongoing demand from young people, parents and wider communities for more and better places for young people to go.

The Trustees of Grimsby Youth Zone believe they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission.

Volunteers’ contribution

Throughout the period all members of the Board of Trustees made invaluable voluntary contributions to the Charity's work in terms of governance, professional and business experience, financial planning, fundraising and leading initiatives across the project. Such contributions were, on average, equivalent to one full day each calendar month. In addition, the engagement work with young people has been supported by a pool of dedicated volunteers, giving on average 9 hours a week of volunteer time to support the Youth Development Group.

Investment Activities

Under the memorandum and articles of association, the charitable company has the power to make any investment which the Trustees see fit. Investments are made where required to further the aims and objectives of the Charity. Currently, the Charity does not currently hold any investments other than cash on deposit with Handelsbanken.

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GRIMSBY YOUTH ZONE

Trustees’ Report for the year ended 31 March 2025 (continued)

FINANCIAL REVIEW

A summary of the results for the year is shown below:

	2025
	£
Incoming resources	10,723,970
Outgoing resources	(333,861)
	───────
Netincoming resources	10,390,109
	═══════

The charity is set up and in its pre-opening phase with donations being received to fund the design and construction of the Youth Zone and recruitment of the CEO.

Reserves Policy

The Board of Trustees of Grimsby Youth Zone have determined that unrestricted, 'free', reserves should be maintained at a minimum of 3 to 6 months of day to day running costs, plus any designated funds for specific projects at the Trustees discretion. Trustees feel this reserves policy appropriately reflects the risks to which the Charity is exposed. Due consideration has been given to these activities in the annual review of the reserves policy and, currently, these costs remain minimal in the pre-opening phase. Once Grimsby Youth Zone is operational, running costs for 3 months (minimum) and 6 months (maximum) will be calculated, and reserves will be maintained within the two figures.

Total reserves as at 31 March 2025, the charity had total funds of £14,555,747 (2024: £4,165,638), of which £1,611,586 were unrestricted (2024: £587,630) and £12,944,161 were restricted (2024: £3,578,008). Free reserves were a surplus of £1,611,586 (2024: £587,630). This amount of free reserves amounts to over 12 months’ cover of cost given the current stage of the project during the pre-opening stage. The policy will be reviewed by the Board annually, to assess whether the current level is still appropriate.

Future plans

Over the next year we will continue to recruit the team. Head of Fundraising and Communications, and a Marketing and Communications Coordinator in April 25. Followed by Volunteer Coordinator and Business Support Officer, Delivery Team Leaders and an Employability Coordinator.

During late spring and early summer recruitment will step up further as we prepare for opening, with a focus on building our sessional delivery team, as well as onboarding critical support staff including catering, facilities, reception and cleaning roles.

We are proud to be assembling a passionate, enthusiastic, and values-driven team. The culture we are creating grounded in inclusion, ambition, and putting young people first will be instrumental in delivering a Youth Zone that truly reflects and serves our community.

Additionally, we aim to expand the Youth Zone’s family of revenue funders to ensure that the pre-opening and the first three years of operational costs are fully funded.

We anticipate that the building work will be completed by July/August 2025, with a goal of full opening and operation by the end of 2025. Ahead of opening, our focus will be on recruiting and training a wider team of staff and volunteers, and developing a safe, positive, and enriching programme for young people to be delivered postopening.

Fundraising statement

OnSide works in collaboration with Horizon Youth Zone Board and CEO to secure the first three years of revenue funding. This funding is secured through a combination of public and private sector contributions, with support from the Local Authority (Northeast Lincolnshire Council) alongside revenue donations typically received from philanthropic individuals and corporations.

Our fundraising efforts focus on securing gifts of £25,000 per annum (or higher) for four years. Donors who contribute at this level are known as Founder Patrons, and their gifts are unrestricted and support the revenue

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GRIMSBY YOUTH ZONE Trustees’ Report for the year ended 31 March 2025 (continued)

costs of Horizon Youth Zone, some of which may also be allocated to the Youth Zone's reserves. These funds are primarily raised through one-on-one meetings between the OnSide Senior Philanthropy Manager for Horizon and prospective donors. Occasionally, we host events to bring together groups of donors and prospective donors.

Horizon does not directly contact the public for fundraising; however, some key stakeholders, such as trustees or supporters, may undertake their own challenges to raise money for the Youth Zone. Horizon has also secured funding from the Heritage Lottery to support local young people in learning about their local heritage and beyond, both before and after the Youth Zone's opening.

Upon opening, the Head of Fundraising and Marketing, with the support of the CEO, will develop a new fundraising strategy to steward existing donors and diversify income streams.

The charity operates in compliance with the Fundraising Regulator's Code of Practice. We do not employ third parties for fundraising, nor do we engage in mass fundraising campaigns, cold calling, or street-based collections. To date, we have received zero complaints about our fundraising activities.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees (who are also directors of Grimsby Youth Zone for the purposes of company law) are responsible for preparing the Trustees' Report (incorporating the directors’ report) and the financial statements in accordance with 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).

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 and of 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 judgments and accounting 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 charitable company will continue in business.

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

In so far as the trustees are aware:

• there is no relevant audit information of which the charitable company's auditors are unaware; and

• the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

The financial statements comply with current statutory requirements, the company's Memorandum and Articles of Association and the Charities SORP.

The Trustees’ Report was prepared in accordance with the special provisions relating to small companies.

The Trustees report was approved and was signed on behalf of the Trustees by:

C Jensen Trustee Date: 16-Oct-2025 | 05:25 BST

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Docusign Envelope ID: 945DFFD0-3283-4AA3-A3A9-1AB9C1B78E58

GRIMSBY YOUTH ZONE Independent auditor’s report to the members of Grimsby Youth Zone

Opinion

We have audited the financial statements of Grimsby Youth Zone (the ‘charity’) for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the 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:

• give a true and fair view of the state of the charitable company's affairs as at 31 March 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 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 Charity’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, including the trustees’ 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.

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 course of 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 our audit:

• the information given in the trustees' report, which includes the directors’ 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 directors’ report included within the trustees' report has been prepared in accordance with applicable legal requirements.

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GRIMSBY YOUTH ZONE Independent auditor’s report to the members of Grimsby Youth Zone (continued)

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included with 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:

• adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, 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 charity’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 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.

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

Based on our understanding of the charity, we identified that the principal risks of non-compliance with laws and regulations related to company, employment and financial reporting legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. We considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and Charities Act 2011.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management, considering the internal controls in place and discussion amongst the engagement team.

We determined that the principal risks were related to the recognition of income and expenditure on fixed assets.

In response to the risks identified we designed procedures which included, but were not limited to reviewing Trustees meeting minutes, examining the donation records, and examining the lease agreement and expenditure invoices for the development.

There are inherent limitations in the audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

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GRIMSBY YOUTH ZONE Independent auditor’s report to the members of Grimsby Youth Zone (continued)

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 and regulations made under that Act. 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 auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members as a body, for our audit work, for this report, or for the opinions we have formed.

Paul Newton FCA (Senior Statutory Auditor) for and on behalf of Xeinadin Audit Limited Statutory Auditor Chartered Accountants

5 Robin Hood Lane Sutton Surrey SM1 2SW

Dated: 16 October 2025

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Docusign Envelope ID: 945DFFD0-3283-4AA3-A3A9-1AB9C1B78E58

GRIMSBY YOUTH ZONE Statement of Financial Activities (including Income and Expenditure Account) for the year ended 31 March 2025

				2025			2024
	Notes	Unrestricted	Restricted	Total	Unrestricted	Restricted	Total
		£	£	£	£	£	£
Income from
Donations and legacies	2	1,056,184	9,640,836	10,697,020	342,118	2,729,537	3,071,655
Other trading activities	3	-	77	77	-	440	440
Investments	4	13,977	12,896	26,873	17,940	-	17,940
		───────	───────	───────	───────	───────	───────
Total income		1,070,161	9,653,809	10,723,970	360,058	2,729,977	3,090,035
		───────	───────	───────	───────	───────	───────
Expenditure on
Raising funds	5	-	7,474	7,474	15	4,902	4,917
Charitable activities	7	46,205	280,182	326,387	962	239,946	240,908
		───────	───────	───────	───────	───────	───────
Total expenditure		46,205	287,656	333,861	977	244,848	245,825
		───────	───────	───────	───────	───────	───────
Net income		1,023,956	9,366,153	10,390,109	359,081	2,485,129	2,844,210
Transfers between funds		-	-	-	-	-	-
		───────	───────	───────	───────	───────	───────
Net movement in funds		1,023,956	9,366,153	10,390,109	359,081	2,485,129	2,844,210
Reconciliation of funds
Total funds brought forward		587,630	3,578,008	4,165,638	228,549	1,092,879	1,321,428
		───────	───────	───────	───────	───────	───────
Total funds carried forward		1,611,586	12,944,161	14,555,747	587,630	3,578,008	4,165,638
		═══════	═══════	═══════	═══════	═══════	═══════

All of the above results are derived from continuing activities and include all gains and losses recognised in the year.

The notes of pages 14 to 21 form part of these financial statements.

Page 11

Docusign Envelope ID: 945DFFD0-3283-4AA3-A3A9-1AB9C1B78E58

GRIMSBY YOUTH ZONE Balance Sheet as at 31 March 2025

		2025			2024
	Notes	£	£	£	£
Fixed assets
Tangible assets	10		9,246,735		3,812,265
Current assets
Debtors	11	23,782		62,036
Cash at bank and in hand		6,101,415		2,177,867
		───────		───────
		6,125,197		2,239,903
Creditors: Amounts falling due within
one year	12	(816,185)		(1,886,530)
		───────		───────
Net current assets			5,309,012		353,373
			───────		───────
Net assets	15		14,555,747		4,165,638
			═══════		═══════
Funds
Unrestricted Funds	14		1,611,586		587,630
Restricted Funds	14		12,944,161		3,578,008
			───────		───────
Total funds			14,555,747		4,165,638
			═══════		═══════

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

16-Oct-2025 | 05:25 BST These financial statements were approved by the board of trustees and authorised for issue on 2025 and are signed on behalf of the board by:

C Jensen Trustee

Company registered number: 12210018

The notes on pages 14 to 21 form part of these financial statements.

Page 12

Docusign Envelope ID: 945DFFD0-3283-4AA3-A3A9-1AB9C1B78E58

GRIMSBY YOUTH ZONE

Statement of Cash Flows for the year ended 31 March 2025

			2025		2024
		£	£	£	£
Cash flows from operating activities
Cash generated from operations	(i)		9,112,596		3,453,756
Investing activities
Investment income		26,873		17,940
Purchase of tangible fixed assets		(5,215,921)		(2,583,711)
		──────		──────
Cash flows (used in) investing activities			(5,189,048)		(2,565,771)
			──────		──────
Net increase in cash			3,923,548		887,985
Cash brought forward at 1 April			2,177,867		1,289,882
			──────		──────
Cash carried forward at 31 March			6,101,415		2,177,867
			══════		══════
(i) Cash flows from operating activities
Net income			10,390,109		2,844,210
Adjustments for:
Investment income			(26,873)		(17,940)
Depreciation			1,348		371
Decrease/(increase) in debtors			38,254		(6,158)
(Decrease)/increase in creditors			(1,290,242)		633,273
			──────		──────
Cash generated from operations			9,112,596		3,453,756
			══════		══════

Page 13

Docusign Envelope ID: 945DFFD0-3283-4AA3-A3A9-1AB9C1B78E58

GRIMSBY YOUTH ZONE

Notes to the Financial Statements for the year ended 31 March 2025 (continued)

1 Accounting Policies

Grimsby Youth Zone is a private charitable company limited by guarantee. The charitable company is incorporated in England and Wales. The address of the registered office is: C/O Wilkin Chapman LLP, Cartergate House, 26 Chantry Lane, Grimsby DN31 2LJ

1.1 Basis of preparation

The financial statements have been prepared under the Companies Act 2006 and the Charities Act 2011, and in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)), and Financial Reporting Standard 102 (FRS 102).

The financial statements are prepared in sterling, rounded to the nearest pound. The charity is a public benefit entity as defined by FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

1.2 Going concern

The Charity has maintained a financially stable state over the last financial year. The Trustees have taken a number of steps to assess the Youth Zone’s ability to continue as a going concern; all key donors have been contacted in order to identify any challenges for them in maintaining their support and Trustees were delighted that all the parties remain fully committed to the project. The Trustees believe we are well on track to securing the Founder Patrons required prior to opening, as well as working towards raising the full capital requirement needed to complete the build.

Whilst it is never possible to be certain of the future, the Trustees consider that the steps taken are sufficient to classify the charity as a going concern and are confident in the Youth Zone’s ability to meet its short and medium term obligations.

1.3 Income

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

Grants, including Government grants, are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Income tax recoverable in relation to donations is recognised at the time the donation is receivable.

1.4 Expenditure

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.

Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities, events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity’s objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

Page 14

Docusign Envelope ID: 945DFFD0-3283-4AA3-A3A9-1AB9C1B78E58

GRIMSBY YOUTH ZONE Notes to the Financial Statements for the year ended 31 March 2025 (continued)

ACCOUNTING POLICIES (continued)

1.5

Tangible fixed assets

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Computer equipment – 3 years

Assets in the course of construction and fixtures and fittings are included at costs incurred to date. Depreciation on these assets is not charged until they are brought into use.

1.6 Debtors

Debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.

1.7

Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.8 Creditors

Creditors are recognised where the charity has a present obligation arising 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 are recognised at their settlement amount.

1.9 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.

1.10 Funds

Unrestricted funds are those which are not subject to any special restrictions and they can be used as the Trustees decide in furtherance of the general objectives of the charity.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The aim and use of each restricted fund is set out in the notes to the financial statements. Investment income is allocated to the appropriate fund.

1.11 Accounting estimates and judgements

There were no significant estimates and judgements made by the charity.

Page 15

Docusign Envelope ID: 945DFFD0-3283-4AA3-A3A9-1AB9C1B78E58

GRIMSBY YOUTH ZONE

Notes to the Financial Statements for the year ended 31 March 2025 (continued)

2	Donations and legacies
				2025	2024
		Unrestricted	Restricted	Total	Total
		£	£	£	£
	Donations	1,029,791	-	1,029,791	330,868
	Government grants - capital	-	3,950,000	3,950,000	-
	Grants	20,000	5,690,836	5,710,836	2,734,537
	Gift aid	6,393	-	6,393	6,250
		──────	──────	──────	──────
	Total	1,056,184	9,640,836	10,697,020	3,071,655
		══════	══════	══════	══════
3	Income from other trading activities
				2025	2024
		Unrestricted	Restricted	Total	Total
		£	£	£	£
	YPDG fundraising event	-	77	77	440
		══════	══════	══════	══════
4	Investment income
				2025	2024
		Unrestricted	Restricted	Total	Total
		£	£	£	£
	Bank interest	13,977	12,896	26,873	17,940
		══════	══════	══════	══════
5	Expenditure on raising funds
				2025	2024
		Unrestricted	Restricted	Total	Total
		£	£	£	£
	Advertising and marketing	-	5,660	5,660	799
	PR and networking	-	1,719	1,719	769
	Fundraising costs	-	95	95	3,349
		──────	──────	──────	──────
		-	7,474	7,474	4,917
		══════	══════	══════	══════

6 Auditor’s remuneration

The auditor’s remuneration amounts to a fee (excluding VAT) of £4,700 for the audit and £1,150 for accounts preparation (2024: £4,500 for audit and £1,100 for accounts preparation).

Page 16

Docusign Envelope ID: 945DFFD0-3283-4AA3-A3A9-1AB9C1B78E58

GRIMSBY YOUTH ZONE

Notes to the Financial Statements for the year ended 31 March 2025 (continued)

7 Expenditure on charitable activities

			2025	2024
	Unrestricted	Restricted	Total	Total
	£	£	£	£
Staff costs (note 8)	46,205	103,311	149,516	61,763
Staff DBS checks	-	395	395	204
Staff Uniform	-	948	948	-
Recruitment	-	11,995	11,995	11,700
Training expenses	-	11,819	11,819	4,579
Trips and activities	-	85,202	85,202	20,398
Capital project fees	-	48,725	48,725	129,562
Support costs (note i)	-	17,787	17,787	12,702
	──────	──────	──────	──────
	46,205	280,182	326,387	240,908
	══════	══════	══════	══════
(i) Support costs
			2025	2024
	Unrestricted	Restricted	Total	Total
	£	£	£	£
Insurance	-	3,317	3,317	1,519
Bank charges	-	270	270	91
Audit fee	-	5,640	5,640	5,400
Accountancy fee	-	1,380	1,380	1,320
IT website and software	-	1,242	1,242	2,057
Other supplies and sundry costs	-	2,363	2,363	1,136
Telephones	-	1,535	1,535	628
Legal and professional	-	692	692	180
Depreciation	-	1,348	1,348	371
	──────	──────	──────	──────
	-	17,787	17,787	12,702
	══════	══════	══════	══════

Page 17

Docusign Envelope ID: 945DFFD0-3283-4AA3-A3A9-1AB9C1B78E58

GRIMSBY YOUTH ZONE

Notes to the Financial Statements for the year ended 31 March 2025 (continued)

8 Staff costs

aff costs
	2025	2024
	£	£
Wages and salaries	137,038	58,808
Social security costs	9,681	1,546
Pension costs	2,797	1,409
	──────	──────
	149,516	61,763
	══════	══════
Average number of employees	4	2
	══════	══════

One member of staff received payments of £60,000 - £70,000 in the current year (2024: £nil).

9 Trustees’ remuneration and expenses

During the year, no trustees received any remuneration or other benefits (2024: £nil). No trustees were reimbursed expenses in the year (2024: £nil).

10 Tangible fixed assets

ngible fixed assets
	Assets under	Fixtures and	Computer	Total
	the course of	Fittings	equipment
	construction
	£	£	£	£
Cost
At 1 April 2024	3,810,397	-	2,239	3,812,636
Additions	5,425,803	5,400	4,615	5,435,818
	──────	──────	──────	──────
At 31 March 2025	9,236,200	5,400	6,854	9,248,454
	══════	══════	══════	══════
Depreciation
At 1 April 2024	-	-	371	371
Charge	-	-	1,348	1,348
	──────	──────	──────	──────
At 31 March 2025	-	-	1,719	1,719
	══════	══════	══════	══════
Net book value
At 31 March 2025	9,236,200	5,400	5,135	9,246,735
	══════	══════	══════	══════
At 31 March 2024	3,810,397	-	1,868	3,812,265
	══════	══════	══════	══════

Page 18

Docusign Envelope ID: 945DFFD0-3283-4AA3-A3A9-1AB9C1B78E58

GRIMSBY YOUTH ZONE

Notes to the Financial Statements for the year ended 31 March 2025 (continued)

11	Debtors
		2025	2024
		£	£
	Trade debtors	6,250	54,260
	Prepayments and accrued income	6,935	1,526
	Gift aid receivable	6,250	6,250
	Accrued income	4,347	-
		──────	──────
		23,782	62,036
		══════	══════
	All amounts fall due within one year.
12	Creditors: Amounts falling due within one year
		2025	2024
		£	£
	Trade creditors	511,783	1,300,101
	Tax and social security	7,955	8,472
	Accruals and deferred income	246,557	101,874
	YIF grant repayable	34,838	469,019
	Other creditors	15,052	7,064
		──────	──────
		816,185	1,886,530
		══════	══════
13	Deferred income
		2025	2024
		£	£
	Deferred income at 1 April 2024	25,000	57,500
	Release from previous periods	(25,000)	(50,000)
	Deferred in the year	-	17,500
		──────	──────
	Deferred income at 31 March 2025	-	25,000
		══════	══════

Deferred income consists of pledged donations that were given for future years.

Page 19

Docusign Envelope ID: 945DFFD0-3283-4AA3-A3A9-1AB9C1B78E58

GRIMSBY YOUTH ZONE

Notes to the Financial Statements for the year ended 31 March 2025 (continued)

14 Funds

	Balance at 1	Income	Expenditure	Balance at 31
	April 2024			March 2025
Unrestricted funds
General funds	587,630	1,070,161	(46,205)	1,611,586
	──────	──────	──────	──────
Restricted funds
Capital	1,095,000	3,962,896	( 1,719)	5,056,177
YPDG	806	77	( 186)	697
National Lottery Heritage	(74,431)	1,234,652	( 68,537)	1,091,684
YIF – Social Investment
Business	2,556,633	4,456,184	(217,214)	6,795,603
	──────	──────	──────	──────
	3,578,008	9,653,809	(287,656)	12,944,161
	──────	──────	──────	──────
Total funds	4,165,638	10,723,970	(333,861)	14,555,747
	══════	══════	══════	══════
	Balance at 1	Income	Expenditure	Balance at 31
	April 2023			March 2024
Unrestricted funds
General funds	228,549	360,058	( 977)	587,630
	──────	──────	──────	──────
Restricted funds
Capital	1,095,000	-	-	1,095,000
YPDG	806	440	( 440)	806
National Lottery Heritage	(33,279)	-	( 41,152)	(74,431)
YIF – Social Investment
Business	30,352	2,729,537	(203,256)	2,556,633
	──────	──────	──────	──────
	1,092,879	2,729,977	(244,848)	3,578,008
	──────	──────	──────	──────
Total funds	1,321,428	3,090,035	(245,825)	4,165,638
	══════	══════	══════	══════

Capital: these are funds received to be used in the construction of the Horizon Zone in Grimsby.

The National Lottery Heritage Fund is supporting Grimsby Youth Zone with a grant of up to £2,697,727 that will support capital and revenue costs to ensure the Youth Zone’s appeal within a Heritage Action Zone.

YIF: The Youth Investment Fund is supporting the Youth Zone with a grant of up to £7,084,170 that will support construction, fees and revenue costs incurred up to 31 December 2025.

YPDG: Young People's Development Group funds raised via challenges are to support the revenue costs towards the young people’s activities.

Page 20

Docusign Envelope ID: 945DFFD0-3283-4AA3-A3A9-1AB9C1B78E58

GRIMSBY YOUTH ZONE

Notes to the Financial Statements for the year ended 31 March 2025 (continued)

15 Analysis of net assets between funds

Analysis of net assets between funds
	Unrestricted	Restricted	Total
	£	£	£
Fund balances at 31 March 2025 are represented by:
Tangible fixed assets	-	9,246,735	9,246,735
Current assets	3,519,455	2,605,742	6,125,197
Creditors due within one year	(1,907,869)	1,091,684	(816,185)
	──────	──────	──────
Total net assets at 31 March 2025	1,611,586	12,944,161	14,555,747
	══════	══════	══════
	Unrestricted	Restricted	Total
	£	£	£
Fund balances at 31 March 2024 are represented by:
Tangible fixed assets	-	3,812,265	3,812,265
Current assets	2,400,052	(160,149)	2,239,903
Creditors due within one year	(1,812,422)	(74,108)	(1,886,530)
	──────	──────	──────
Total net assets at 31 March 2024	587,630	3,578,008	4,165,638
	══════	══════	══════

16 Related party transactions

During the year, Trustees donated a total of £25,000 to the charity (2024: £25,000).

Key Management Personnel aggregate remuneration was £68,447 (2024: £31,592).

There were no other related party transactions during the year.

17 Capital commitments

At the year end, the charity had the following capital commitments:

				£
Capital commitments at	31	March	2025	3,293,252
				══════
Capital commitments at	31	March	2024	8,167,229
				══════

Page 21