The Esprit Foundation {a charitable incorporated organisationl REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Charity Number 1198436 THE ESPRIT FOUNDATION CONTENTS PAGE FOR THE YEAR ENDED 31 MARCH 2025 Legal and administralive details Report of the trustees Independent Examination report Statement of financial activities Balan￿ sheet Notes to the financial statements 9-13 THE ESPRIT FOUNDATION LEGAL AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2025 Trustees Stuart Malcolm Chapman Rupinder KaurAshworth Vincent Alfred O'Brien Registered Office 20 Garrick Street London WC2E 9BT Charity number: 1198436 Independent Examingr: Steven Harper Haysmac LLP 10 Queen Street Place London EC4R 1AG Solicitors BDB Pilmans LLP One Bartholomew Close London EC1A 7BL Bankers HSBC Innovation Banking Alphabeta, 14-18 Finsbury Square London EC2A 1BR THE ESPRIT FOUNDATION TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2025 The Trustees present their annual report and financial slalemenls of The Esprit Foundation I'lhe Charily'l for the year ended 31 March 2025. The financial statements have been prepared in accordance with the accounting policies sel out in note 2 to the accounts and comply with the Charity's Charitable Incorporated Organisalion ICIOI Conslilulion, the Charities Act 2011 and the Accounting and Reporting by Charities.. Stslemenl of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Report Standard applicable in the UK and Republic of Ireland {FRS1021. Structure, govgmancg and managemont The Charity is a charitable incorporated organisalion which was registered with the Charity Commission on 30 March 2022. The Charity s governing document li.e. ils Conslitutionl is based on the 'associalion' model with its sole member being Molten Ventures plc with registered company number 09799594. The Constitution requires there lo be al least three Trustees. Trustees are appointed by the member and musl retire by rotation.. Trustees are eligible for re-appointment and may serve no more than three consecutive terms unless the remaining Trustees unanimously recommend to the member that il would be in the Chanty's best interest for a particular Trustee lo serve an additional term. On or before their appointment as a Trustee, the Trustee will be given a copy of the Constitution and the Charity's latest Trustees, annual report and statement of accounts. The names of all those who were the Charity'5 Trustees on the dale the report was approved are listed on page 2. Objectives and activities The objects of the Charity as staled in ils Constitution are.. Yorsuch charitable pU￿oseS gs the Tmslees think fit Nncluding bul not exclusively, the advancement of education forthe public benefit and especially those under the age of 30, in particular but notsolely by the promotion and understanding of.- {8J the use and application of technology and technological research,. gnd {bJ bu&ness and 8ntrepr&neurship.- The Charity has in place policy guidelines that outline the factors lo which the Trustees should have regard when determining whether to make a grant. Achievements and performance Grants Power Collective CIC backed b "We Are Powerf October 2024 We are Power is the umbrella brand of the Norther Power Women Awards and Power Collective CIC and We are Power's slated aim is to "accelerate social mobility, gender equality and diversity across the country. And beyond." The £25,000 grant awarded by the Charity was for usage lo fund the pilot phase of the 'Power Pack" initiative, with the aim of positively impacting the lives of 19 students and readying them for the real world of business. This is an innovative programme tailored for the 16-18 age group and is designed lo enhance entrepreneurial skills and professional adaptability among students in Manchester and Liverpool. The programme involves a suite of activities. including creative scoping sessions, speed pitching events, six- week professional development bool camp, a demo day, real-world business immersion, and evaluation and feedback. The initiative airns lo prepare students for both traditional and innovative career paths. One of the Charity's Trustees, Rupinder Ashworth is a contributor to the Power Collective CIC. THE ESPRIT FOUNDATION TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2025 Social Mobili Foundation December 2024 The Social Mobility Foundation's ISMFI staled mission is lo'unlock potential, broaden horizons and ereale opportunities with and for ambitious young people who face slruclural barriers in education & work because of where they grew up and went to school or the occupation of their parenlslguardians.. The Charity's second grant of £25,000 awarded lo SMF (previously granted £25,000 in June 20231 was for usage in the Aspiring Professional Programme IAPPI in Manchester, aiming lo deliver this lo al least 720 young people. The APP gives young people from lower socioeconomic backgrounds the skills and networks needed to open a wide range of professions. The programme aims lo give a real insight into top professions and provides young people with the skills and confidence needed lo achieve their aspirations, including through activities such as tailored professional skills sessions, career workshops, university application support and guidance, job application support and guidance, mentoring, and internships and residenlials. The programme is tailored lo meet the neds of young people. Their students are the hardest to reach, due lo location or caring responsibilities, receive support, mentoring, resources and tutorials online. Flnancial review During the year, the Charity raised donations of £257,660 {2024.' £261,460}. The Charity made grants of £54,774 {2024.' £100,000}. Funds carried forward at the year-end were £601,603 {2024.. £397.083}, which are all unrestricted general funds. Rgsorvos policy Having regard to the aggregate quantum of donations re￿IVed,. annual level of expenses and liabilities incurred; and actual and anlicipaled volume of grants, the Trustees determined al a meeting held on 5 September 2023 to adopt a reserves policy during the financial year. confirming the minimum level of free reserves that the Charity will seek to maintain at all times. The level of such reserves policy was determined lo be £15,000, being an amount in excess of one year's ongoing recurring governance, support and operational costs incurred by the Charity. In arriving at this level. the Trustees had due regard for the existing controls maintained by the Charity over ils volume and quantum of grants which can be approved or curtailed by the Charity al any lime relative lo the level of donations and any other income re￿iVed and maintained, and the fact that il does not employ staff nor make payments lo Trustees for their service to the Charity. Risk managernent The Trustee5 have 8 duty to identify and review the risks lo which the Charity is exposed and lo ensure appropriate controls are in place to provide reasonably assurance against fraud and error. The Trustees are satisfied that adequate controls are in place lo manage major risks lo the Charity, and will continue lo develop appropriate methodologies to manage any emerging risks as they arise. Going concem After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources lo continue in operational existence for the foreseeable future. For this reason, they continue lo adopt the going concern basis in preparing the financial slatemenls. Further details regarding the adoption of the going concern basis can be found in the accounting policies. THE ESPRIT FOUNDATION TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2025 Public benefit statement The Trustees, having regard lo the public benefit guidance published by the Charity Commission in accordance with section 17 of the Charities Act 2011, consider that the purposes and activities of the Charity satisfy the requirements of the public benefit lest set out in section 4 of the same Act. The Charity carries out these objects by providing grants to individuals and organisations whose objects comply with the Charity s criteria. Trustees. rgsponsibilities in relation to tho financial statements The Trustees are responsible for preparing the Trustees, report and the financial stslemenls in accordarbce with applicable law and United Kingdom Accounting Standards. The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the stale of affairs of the Charity and of the incoming resources and application of resources of the charity for that perilxl. In preparing these financial statements. the Trustees are required to.. select suitable accounting policies and then apply them consislenlly., observe the methods and principles of the Charities SORP., make judgements and accounting eslimales that are reasonable and prudent., slate whether applicable accounting standards have been followed, subject lo any departures disclosed and explained in the financial statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business. The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy the rinancial position of the Charity and enable them to ensure that the financial slalements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by the Trustees on 0811012025 and signed on their behalf by.. art Ck4VWa Stuart Chapman Trustee Dale.. 0911012025 INDEPENDENT EXAMINER'S REPORT TO THETRUSTEES OF THE ESPRIT FOUNDATION FOR THE YEAR ENDED 31 MARCH 2025 I report to the Trustees on my examination of the accounts of The Esprit Foundation for the year ended 31 March 2025 which are sel out on pages 7 to 13. Respective responsibilities of trustees and examiner As the trustees of the charity, you are responsible for the preparation of the accounts in accordance with the requirements of the Charilies Act 20111'lhe Acl'l. I report in respect of my examination of the charity's accounts Conducted under section 145 of the 2011 Act and in conducting my examination I have followed all the applicable Directions given by the Charity Commission under section 145{5llb) of the Act. Independent examinor's statement Sir)ce the Charity's income is in excess of £250,000, your examiner must be a member of a btxjy listed in the 2011 Act. I can confirm that l am qualified lo undertake the examination because l am a registered member of the Institute of Chartered Accounlanls of Scotland which is one of the listed bodies. I have completed my examination. I confirm that no matters have come to my attention giving me cause to believe that in any material respect= accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act.. or 2. the accounts do not accord with those records., or 3. the accounts do not comply with the applicable requirements concerning the form and conlenl of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examinatson to which attention should be drawn in this report in order lo enable a proper understanding of the accounts lo be reached. Steven Harper Haysmac LLP 10 Queen Street Place London EC4R 1AG Dale.. 0911012025 THE ESPRIT FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2025 Note Total 2025 Total 2024 Incorne frorn- Donations and legacies Interest 257,660 8,274 261,460 6,193 Total income 265,934 267,653 Expendlture on.. Charitable activities Other expenditure 54,774 6,640 100,000 9,780 Total expenditure 61,414 109,780 Net income and nèt movement in funds 204,520 157,873 Reconciliation of funds: Totsl funds brought forward 397.083 239,210 Net movement in funds 204,520 157,873 Total funds carried fonNard 601,603 397,083 All of the Charity's funds in the current year were unreslricled. The Statement of Financial Activities includes all gains and losses recognised in the year. The notes set out on pages 9 10 13 form part of these financial statements. THE ESPRIT FOUNDATION BALANCE SHEET FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 Note Fixed Assets Investment 60 Current assets Cash at bank and in hand 610,793 406,203 Creditors: amounts falling due within one year 19.2501 19,1201 Total net assets 601,603 397,083 Charity funds Unrestricted fLJnds 10 601.603 397,083 Total fvnds 601,603 397,083 These financial statements were approved and authorised for issue by the Trustees on 0811012025 signed on ils behalf by.. and Stuart Chapman Trustee The notes set out on pages 9 10 13 form an integral part of these financial statements. THE ESPRIT FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 General information The Esprit Foundation, the 'Charity' is a charitable incorporated organisation, charity number 1198436. Its registered office is 20 Garrick Sireel, London, WC2E 98T. The objectives ofthe Charity are sel out in the Trustees Report, as slated on page 2 of these financial statements. ACCOUNTING POLICIES 2.1 Basis of prgparation of financial statements The financial statements have been prepared in accordance with the Charities SORP IFRS1021 applicable lo charities preparing their accoLJnts in accordance with FRS102 the Financial Reporting Standard applicable in the UK and Republic of Ireland and the Charities Act 2011 and UK Generally Accepted Practice. The Esprit Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless othenNise slated in the relevant accounting policy. The financial statements are presented in UK Sterling. and are rounded lo the nearest pound. 2.2 Going Concern After making appropriate enquiries, the Trustees have a responsible expectslion that the Charity has adequate resources lo continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. 2.3 Fund Accountlng General funds are unrestricted funds which are available for use al the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for the other purposes. 2.4 Income All In￿Me is recognised On￿ the Charity has enlillement lo the income, il is probable that the income will be received, and the amount of income receivable can be measured reliably. On re￿ipt, donated professional services and facilities are recognised on the basis of the value of the gift lo the Charity, which is the amount il would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market,. a Corresponding amount is then recognised in expenditure in the period of receipt. THE ESPRIT FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2 Accounting policies fcontinuedj 2.5 Expenditure Expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation lo activities. Where costs cannot be directly attributed lo particular activities, they have been allocated on a basis consislenl with the use of resources. Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity s objectives, as well as any associated support costs. Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been mel at the year-end are noted as 8 commitment. bLrt not accrued as expenditure. All expenditure is inclusive of irrecoverable VAT. 2.6 Fixed asset investments Fixed asset investments are a form of financial instrument and are initially recognised al their transaction cost and subsequently measured at fair value at the Balance Sheet dale, unless the value cannot be measured reliably in which case il is measured 81 cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as 'Gainsl{Lossesl on inveslmenls, in the Consolidated Sl8temenl of Financi81 Activities. 2.7 Debtors Trade and other debtors are recognised al the settlement amount. Prepayments are valued al the amount prepaid. 2.8 Cash at bank and in hand Cash al bank and in hand includes cash and short-lerm 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. 2.9 Credltors and provlslons Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due lo settle that obligation can be measured or eslimaled reliably. Creditors and provisions are initially rewgnised al transaction value as none represent a financing transaction. They are only derecognised when they are extinguished. 2.10 Critical accounting judgements or ostimation The Trustees do not consider there lo be any significant judgements or sources of estimation uncertainty in relation lo the preparation of the financial statements. 10 THE ESPRIT FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2 Accountlng policles (continued) 2.11 Taxation The Charity is considered lo pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore il meets the definition of a charitable company for UK corporation lax purposes. Accordingly, the Charity is potentially exempl from laxalion in respect of income or capitsl gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively lo charitable purposes. 2.12 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 with the ex￿ptIon of bank loans which are subsequently measured al amortised cost using the effective interest method. Income from donations and legacies Total Funds 2025 Total Funds 2024 Donations 257,660 261,460 Analysls of Grants Grants have been awarded as follows.. 2025 2024 The Social Mobility Foundation Foundetwine CIC Included VC Limited The UK Career Academy We Are Power Other grants and donatK)ns 25,000 25,000 25,000 25.000 25.000 25.000 4,774 Total Grants 54,774 100,000 Other expendlture Total Funds 2025 Total Funds 2024 Independent Examiner and accountancy fees 6,640 9,780 THE ESPRIT FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Staff costs During the year, there were no staff cosls12024'. no staff cosls}- The Trustees are considered to be the key management personnel of the Charity Trusteos rgnumgration and gxpenses During the year, no Trustee received any remuneration, expenses or other benefrts. 12024.. £Nil remuneration, expenses or other benefits were paid outl- Investment 2025 2024 Additions 60 Value as at 31 March 2025 60 Historical cost 60 Credltors: Amounts falllng due wlthln one year 2025 2024 Trade creditors Accruals Intercompany- Molten Ventures PIC 1,830 6,420 1,000 1,560 7,560 9,250 9,120 10. Statement of Funds Balanco at 1 April 2024 Balance at 31 March 2025 Income Expenditure Unrestrleted funds General Funds 397,083 265,934 161,414} 601,603 397,083 265,934 161,414) 601,603 12 THE ESPRIT FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 11. Analysis of net assets between funds Total Funds 2025 Total Funds 2024 Fixed asset investments Current assets Creditors due within one year 60 610,793 19,2501 406,203 19,1201 Total 601,603 397,083 12. Related party transactions During the year, donations of £250,000 12024.. £250,000} were received from the chair of The Esprit Foundation. The chair is a Director of Molten Ventures PLC, a connected company. £7,660 12024.. £11,460) of expenses relating to Esprit Foundation were paid by Molten Ventures PLC, a connected company. This is included within donations for the year. There were no other related party transactions during the financial year12024.. £Nil}. 13