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2025-07-31-accounts

Financial Statements Liverpool Life Science Accelerator Limited

For the Period Ended 31 July 2025

Registered Charity Number: 1200750

Company No. 14342845

Liverpool Life Science Acclerator Limited Financial Statements for the year ended 31 July 2025

Company Registration Number: 14342845
Registered Charity Number: 1200750
Registered Office: c/o Liverpool School of Tropical Medicine
Pembroke Place
Liverpool
L3 5QA
Trustees: Prof D G Lalloo
D R Preston
I M Jones
J Clague (appointed 1 September 2024)
H J MacDonald (appointed 14 July 2025)
Secretary: J Clague (appointed 1 September 2024)
Bankers: Royal Bank of Scotland Plc
1, Dale Street
Liverpool
L2 2PP
Solicitors: Brabners LLP
Horton House
Exchange Flags
Liverpool
L2 3YL
External Auditor: Crowe U.K. LLP
55, Ludgate Hill
London
EC4M 7JW
Internal Auditors: RSM Risk Assurance Services LLP
Internal Auditor
Chartered Accountants
3 Hardman Street
Manchester
M3 3HF

Liverpool Life Science Accelerator Limited Financial Statements for the year ended 31 July 2025

Index to the Financial Statements

Report of the Trustees 1 – 7
Independent Auditor’s Report 8 – 11
Principal Accounting Policies 12 - 14
Statement of Financial Activities 15
Balance Sheet 16
Cash Flow Statement 17
Notes to the Financial Statements 18 - 22

Liverpool Life Science Accelerator Limited Financial Statements for the year ended 31 July 2025

Report of the Trustees

The trustees, who are also the directors of the charitable company for the purposes of the Companies Act 2006, present their report together with the financial statements for the year ended 31 July 2025.

Directors and Trustees

The charitable company was incorporated on 7 September 2022.

The directors of the charitable company (the charity) and its trustees, for the purpose of charity law and throughout this report are collectively referred to as the trustees.

The trustees serving during the year and since the year end were as follows:

Prof DG Lalloo D R Preston I M Jones J Clague (appointed 1 September 2024) H J MacDonald (appointed 14 July 2025)

Structure, Governance and Management

Liverpool Life Science Accelerator Limited (LLSAL) is a not-for-profit company limited by guarantee with charitable status in the UK. It is a 100% owned subsidiary of Liverpool School of Tropical Medicine (LSTM).

The organisation is overseen by a Board of Trustees with fiduciary responsibilities and financial and audit oversight. LLSAL has no staff and LSTM staff on the LSTM Executive team and across other departments are responsible for strategic and day to day management of the company.

Group Structure

The Liverpool School of Tropical Medicine (LSTM) is the parent company of LLSAL by virtue of it being the sole member of the company limited by guarantee.

Statement by the Trustees on performance of their statutory duties in accordance with s172(1) of the Companies Act 2006

The Board of Trustees of LLSAL consider, both individually and collectively, that they have acted in ways that they believe in good faith to be most likely to promote the success of the charity for the benefits of its members as a whole (having regard to the stakeholders and other matters set out in s172(1) of the act) in the decisions they made during the 12 months ended 31 July 2025.

The LLSAL Board of Trustees comprises 3 executive trustees and 2 non-executive trustees. There is a minimum of 3 full board meetings each year.

Trustees are not remunerated, and they join the LLSAL board to contribute their skill and expertise to help LLSAL to achieve its vision and mission, as detailed elsewhere in this report. The Board of Trustees has a terms of reference that is reviewed annually, and Board members receive regular external training on the duties of trustees of a charity. There is also a code of conduct and members are required to declare any conflicts of interest at every meeting.

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Liverpool Life Science Acclerator Limited Financial Statements for the year ended 31 July 2025

The Board’s key stakeholders have been identified as the following:

The Board, and other LSTM staff responsible for day-to-day management, engage with each of these groups throughout the year.

Key decisions made by the Board this year include:

Employee engagement statement

LLSAL does not have any employees and the trustees are not remunerated. LSTM Executive and other LSTM staff are responsible for the day-to-day management of the company.

Statement on business relationships

The LLSAL Board of Trustees and the LSTM staff responsible for the day to day running of the company comprise people with a variety of skills and backgrounds. Through their networks, they are able to foster relationships by direct contact with relevant stakeholders and others, particularly in relation to key decisions made by the Board. This is particularly relevant in applications for capital and other funding for development of the building as a specialised research hub.

Sustainability and Carbon reporting

The key asset of LLSAL is the Liverpool Life Science Accelerator building. Day to day management of the building lies with the LSTM Estates department. LLSAL sustainability and carbon reporting is included in the LSTM Group Trustees’ Report.

Audit Committee

LLSAL benefits from shared accounting and audit arrangements with its parent institution, the Liverpool School of Tropical Medicine. External audit work is carried out by Crowe UK LLP. All internal audit work is performed by RSM Risk Assurance Services LLP, whose remit is to provide independent and objective assurance to add value and improve the organisation’s operations. This is carried out through the evaluation and improvement of risk management, governance, and control processes.

LSTM Audit Committee acts as the review body for both internal and external audit oversight on all recommendations made. A number of executive directors of LLSAL also sit on the LSTM Audit Committee.

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Liverpool Life Science Acclerator Limited Financial Statements for the year ended 31 July 2025

Governing Document and Objectives of the Charitable Company

The organisation is governed by the Memorandum and Articles of Association which were laid down at the incorporation of the company on 7 September 2022.

The objectives of the charity are:

The advancement of health for the public benefit by (but without prejudice to the generality of the foregoing) the provision of facilities for research, study, and instruction in connection with the origin, character, alleviation, prevention, and cure of every or any type of tropical or other disease;

To advance the education of the public on the matters aforesaid and to promote research for the public benefit in all aspects of that subject and to publish the useful results; and

Such other exclusively charitable purposes according to the law of England and Wales that the Trustees may in their absolute discretion decide from time to time.

Appointment of Trustees

Any new appointments to the board are a matter for consideration of the board as a whole. Trustees are appointed by the Members for a term of three years or co-opted by the Trustees.

Trustee Induction and Training

The inaugural Trustees are executive staff in LSTM and as such are well versed in the requirements of their legal obligations under charity and company law, the Charity Commission guidance on public benefit, the content of the Memorandum and Articles of Association, the committee and decision-making processes and the business plan of this company. A second non-executive trustee was appointed in July 2025 who is very experienced in managing charitable organisations, particularly in relation to real estate financing.

Strategic Report

As a registered charity, the strategic report is contained in the following sections:

Risk Management

The Trustees have a risk management strategy in place which identifies the major first level risks to which the charitable company is exposed. The trustees regularly review the systems established to mitigate those risks.

The board has delegated certain monitoring and control responsibilities to the parent organisation, LSTM. LSTM is responsible for implementing LLSAL’s Risk Management framework, which includes the Corporate Strategic Risk Register, the Risk Management Policy, and Risk Level KPIs.

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Liverpool Life Science Acclerator Limited Financial Statements for the year ended 31 July 2025

Risks other than financial include:

Risk assessments are carried out by LSTM management. The outcomes of the assessments are included in the risk assessment register. The core administrative team identifies new risks and monitors existing risks.

The risk assessment register is summarised and reviewed by the LSTM Executive, Audit Committee and Board of Trustees at least annually.

Financial Risk Management Objectives and Policies

The Finance and Investment Committee of LSTM acts as a review body for all finance and investment related activities. Three existing executive members of the LLSAL Board sit on this committee.

To purchase the building, LLSAL took out a £6m loan with HSBC Commercial Bank. This loan is secured on the building and LLSAL is required to report under the covenants quarterly. During the year, LLSAL was able to satisfy all covenant requirements comfortably.

Interest rate risk is offset via an interest rate swap which is in line with LSTM Group policy on managing financial instruments through hedging arrangements. The market value of the swap has changed from an asset to a liability as the Bank of England has gradually reduced interest rates since the swap was purchased. The swap matures in November 2027 at which point its value will be zero.

LLSAL has a £9m intercompany loan with its parent company, LSTM. Under the intercompany loan agreement intercompany interest is payable at 1% above the Bank of England base rate.

The company expects to be able to fully fill the building with tenants within the LSTM Group and external tenants, improving cash flow, and facilitating the quarterly capital repayments and interest payments on the external loan and interest on the intercompany loan.

During the year, development and commissioning of the Human Challenge Facility continued. Funding for the Human Challenge Facility is by way of an interest free loan from LSTM. Following tax and legal advice, the Trustees are satisfied this is within the charitable objectives of the organisation.

Objectives and Activities for Public Benefit

LLSAL promotes research and experimental development and advances education of the public, through the provision of a world class research facility for the advancement of public health. The Board confirms it has referred to the guidance contained in the Charity Commission’s general guidance and The Advancement of Education for the Public Benefit when reviewing the Charity’s aims and objectives in planning future activities for the year.

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Liverpool Life Science Acclerator Limited Financial Statements for the year ended 31 July 2025

Achievements and Performance

LLSAL was established in September 2022 to promote research and experimental development and advance education, through provision of a world class research facility.

The facility has increased occupancy levels occupancy since the building was purchased in 2022. The majority of tenant leases will be up for renewal in 2026, and work has commenced on extension negotiations. During the year, the ground floor lease has been converted from a 3 year to a 21-year lease. This will give a degree of future financial stability for the charity.

The initial period of investment in the building has continued. Building works on the ground floor Human Challenge Facility has largely completed and commissioning of the facility is being undertaken by LSTM. The first human patient trials are expected to commence in June 2026.

Works continue on the AIR-HC Laboratory housed on the first floor. The facility will be one of the first fully automated containment level 3 human organoid labs driven by closed loop artificial intelligence (AI), to provide medium throughput screening of human organoids with new drug candidates and NTD pathogens of relevance to humans.

Goals, Future Plans and Developments

LLSAL’s key asset is the Liverpool Life Science Accelerator building, a modern building in the heart of Liverpool’s knowledge quarter providing state of the art laboratory and related office facilities.

The ground floor human challenge facility, a growth research area following the Covid-19 pandemic, is leased by LSTM and will be fully operational later in the year. The facility will be managed and run by LSTM for future trial work. The facility is a bespoke area where external companies could also pay for use of this fully serviced 24/7 space for the relevant periods of a human clinical trial. The first trial is due to be undertaken in June 2026.

Work continues on the AIR-HC Laboratory on the first floor. A completion date of mid 2026 has been set for the facility to be fully operational and available for use. The facility will be leased by LSTM.

Work has begun on the renewal of tenant leases, many of which expire in 2026.

The current £6m bank loan agreement with HSBC is due for renewal in November 2027. Although this is 2 years away, initial preparations and discussions will need to take place internally and with financial institutions on renewal options.

A fire risk appraisal report has been commissioned on the building. Pending the outcome of the report remedial works may be needed on the building.

Financial Review

Income for the year ended to 31 July 2025 was £1,109k (2024 : £1,153k). This was all rental income from charitable activities. Outgoings consisted primarily of group and external interest on loans £800k, (2024 : £864k) and depreciation of £296k, including an expense of £22k for component accounting within the LLSA building (2024 : £294k).

The balance sheet reflects the purchase of the Liverpool Life Science Accelerator building for £15m in November 2022 and the loans taken out to make that purchase. The building is valued at cost less accumulated depreciation and had a value of £22.0m on 31 July 2025 (2024: £18.2m). Other notable assets include the HCF and work in progress for the AIR-HC facility.

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Liverpool Life Science Acclerator Limited Financial Statements for the year ended 31 July 2025

The large overdraft is a temporary position and is underpinned by an LSTM Group cross guarantee. An inter-company loan is being drawn up to manage this in the longer term.

There is a small operating surplus of £6k before reflecting the £22k in year additional depreciation to reflect component accounting, resulting in a reported net outgoing resources of £16k. in addition the market movement in the interest rate swap that is in place (£38k unrealised loss) resulted in a net movement in funds of £55k.

These two items are the main driver behind the closing net liabilities of £187k.

Reserves Policy

LSTM Group policy is that unrestricted reserves represent a minimum of 6 months' pay expenditure. LLSAL does not have any staff, its key expense is interest due on both internal and external loans. Resources are therefore managed and committed within a framework of financial planning that ensures that there are sufficient reserves and liquid resources to fulfil loan covenant contractual commitments. The covenants on the loan assist in ensuring that the company is managed in such a way as to meet the capital and interest commitments. All covenants are currently being met and are expected to be in the future. Total and free reserves are -£187k (2024 : -£132k).

The Board is undertaking to rectify the current negative net asset position through generating additional rental revenues. In addition, an intercompany loan is anticipated to restore cash reserves, the Board has targeted for cash reserves to represent a minimum of 6 months loan costs.

Going Concern

LLSAL’s balance sheet reflects its key asset, the Liverpool Life Science Accelerator building and specialist rooms contained within it, largely offset by the loan commitments taken out to purchase the building and fund the construction works on the specialist facilities.

The budget for 2025/26 shows a breakeven position, before market adjustments for the interest rate swap. Excluding ongoing capital improvement works, which will be covered from a new inter-company loan, cash outflows in the form of interest payments are expected to be less than budgeted income, which will result in a reduction in the current bank overdraft position over time.

The organisation benefits hugely from the synergistic relationship with LSTM, who along with IVCC rent a large proportion of the space in the building and provide management and administrative services. LSTM staff have considerable involvement in global health research which is the primary market for the building.

LSTM, the ultimate parent company of LLSAL, will provide ongoing support for the company in the form of LLSAL’s overdraft facility continuing as part of the LSTM UK Group cash pooling facility that it has in place with its RBS sterling bank accounts. LSTM and LLSAL also have an existing formal loan agreement issued at an arms-length basis. A second intercompany loan will be set up in 2025/26 relating to funding of the human challenge facility and the AIR-HC facility.

The Board of Trustees has a reasonable expectation that LLSAL has adequate resources to continue in operation for the foreseeable future. Therefore, it has adopted the going concern basis in preparing the financial statements.

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Liverpool Life Science Acclerator Limited Financial Statements for the year ended 31 July 2025

Trustees' Responsibilities Statement

The trustees (who are also directors of LLSAL for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under that law, the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including ‘FRS102 The Financial Reporting Standard applicable in the UK and Republic of Ireland’. Under company law, the trustees must not approve the financial statements 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 these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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. The trustees confirm that:

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.

Auditors

The auditor, Crowe UK LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

The trustee’s sign off relates to the strategic report as well as the responsibilities per the regulations.

ON BEHALF OF THE BOARD

D R Preston Director

20 November 2025

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Independent Auditor’s Report to the Members of Liverpool Life Science Accelerator Limited

Opinion

We have audited the financial statements of Liverpool Life Science Accelerator Limited for the year ended 31 July 2025 which comprise the Statement of Financial Activities, the Balance Sheet, Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

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Liverpool Life Science Accelerator Limited Financial statements for the year ended 31 July 2025

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 our audit

Matters on which we are required to report by exception

In 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 strategic report or the directors’ 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 XX, 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 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 charitable company or to cease operations, or have no realistic alternative but to do so.

9

Liverpool Life Science Accelerator Limited Financial statements for the year ended 31 July 2025

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation and health and safety legislation.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing and recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Audit Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.

In accordance with International Auditing Standards, we planned our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements or accounting records including any material misstatements resulting from fraud, error or non-compliance with law or regulations.

A further description of our responsibilities for the audit of the financial statements is located on the

Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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Liverpool Life Science Accelerator Limited Financial statements for the year ended 31 July 2025

Use of our report

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

Jayne Rowe Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor London

Date: 2 December 2025

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LLSA Limited Financial Statements for the Year Ended 31 July 2025

Principal Accounting Policies

Legal Status of the Charitable Company

LLSA is a registered charity and a company limited by guarantee incorporated in England and Wales and has no share capital. In the event of LLSA being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

The registered office of LLSA is Liverpool School of Tropical Medicine, Pembroke Place, Liverpool, Merseyside, L3 5QA.

Basis of Preparation

The financial statements have been prepared 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. LLSA is a public benefit entity and therefore has applied the relevant public benefit requirement of FRS 102. The financial statements are prepared in accordance with the historical cost convention (modified by the revaluation of derivative financial instruments and investments).

The financial statements are presented in Sterling (£).

Going Concern

LLSAL’s balance sheet reflects its key asset, the Liverpool Life Science Accelerator building largely offset by the loan commitments taken out to purchase the building.

The budget for 2025/26 shows a break even position, before market adjustments for the interest rate swap. Excluding capital improvement works, which will be covered from inter-company loans, cash outflows in the form of interest payments are expected to be less than budgeted income, which will result in a reduction in the current bank overdraft position over time.

The organisation benefits hugely from the synergistic relationship with LSTM, who along with IVCC rent a large proportion of the space in the building at market value, and provide management and administrative services. LSTM staff have considerable involvement in global health research which is the primary market for the building.

Liverpool School of Tropical Medicine, the ultimate parent company of LLSAL, will provide ongoing support for the company in the form of LLSAL’s overdraft facility continuing as part of the LSTM UK Group cash pooling facility that it has in place with its RBS sterling bank accounts. LSTM and LLSAL also have a formal loan agreement issued at an armslength basis.

The Board of Trustees therefore has a reasonable expectation that LLSAL has adequate resources to continue in operation for the foreseeable future. Therefore, it has adopted the going concern basis in preparing the financial statements.

Significant Judgements and Estimates

Preparation of the Financial Statements requires management to make significant judgements and estimates. The items in the Financial Statements where these judgements and estimates have been made include :

Estimates

Financial Instruments : all derivatives are measured at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at a measurement date. Where the market for a financial instrument is not active, fair value is established using a valuation technique. These valuation techniques involve a degree of estimation, the extent of which depends on the instrument’s complexity and the availability of market based data.

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LLSA Limited Financial Statements for the Year Ended 31 July 2025

Valuation of land : The Liverpool Life Science Building was purchased for £15m which included the land and the building. Management worked with a surveyor to estimate the land element of the purchase, which was valued at £1.65m, and which is not being depreciated. The estimate is based on a review of similar property and land values in the area local to the building.

There were no significant judgements made in the preparation of these financial statements.

Statement of Principal Accounting Policies

Revenue Recognition

Income from rental contracts and related services rendered is credited to the Statement of Financial Activities when the services are supplied to the external or group customers or the terms of the contract. This is generally the charging of rents and any related service charges on a monthly basis based on occupation of the space.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by LLSA; this is normally upon notification of the interest paid or payable by the Bank.

Expenditure and Irrecoverable VAT

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with use of resources.

Any Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Allocation of Support Costs

Support costs are those functions that assist the work of LLSA but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support LLSA's charitable activities. All costs have been allocated to expenditure on charitabale activities.

Governance Costs

Governance costs comprise all costs involving the public accountability of a charity and its compliance with regulation and good practice. These costs include statutory audit, legal costs and board of trustee meeting costs. Included within this category are costs associated with the strategic as opposed to day-to-day management of the charity's activities.

Employment Benefits

Short term employment benefits such as salaries and compensated absences are recognised as an expense in the year in which the employees render service to LLSA. Any unused benefits are accrued and measured as the additional amount LLSA expects to pay as a result of the unused entitlement.

Fixed assets

Land and buildings

Costs incurred in relation to land and buildings after initial purchase or construction are capitalised to the extent that they increase the expected future benefits to LLSA.

Freehold land is not depreciated as it is considered to have an indefinite useful life. Freehold buildings are depreciated on a straight line basis over a period of 50 years.

Where an asset comprises two or more separate components with substantially different useful economic lives, each component should be accounted for separately for depreciation purposes. Component accounting is applied by LLSA in 2024/25 and in a prior year adjustment in 2023/24 and is applied to components of the Liverpool LIfe Sciences Building if it is deemed material. A material costs is where the cost of the component is material to the overall cost of the assets, or if it has a material impact on the depreciation charge.

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LLSA Limited Financial Statements for the Year Ended 31 July 2025

LLSA has determined that component accounting is appropriate for Elevators (25 years useful economic life), HVAC systems (25 years) and roofs (20 years).

Fixtures and Equipment

Fixtures and equipment, including computers and software, costing less than the de minimus per individual item is recognised as expenditure. All other equipment is capitalised.

Capitalised equipment (including computer and other equipment) is stated at cost and depreciated over 4 years.

Depreciation methods, useful lives and residual values are reviewed at the date of preparation of each Balance Sheet.

Cash and Cash Equivalents

Cash includes cash in hand, deposits repayable on demand and overdrafts. Deposits are repayable on demand if they are in practice available within 24 hours without penalty. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash with insignificant risk of change in value.

Debtors

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

Creditors

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

Financial Instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Derivative instruments are considered to be non-basic financial instruments and are initially measured at transaction price, then subsequently measured to fair value each reporting date. Derivative financial instruments are recognised at fair value using a valuation technique with any gains or losses being reported in the Statement of comprehensive income. Outstanding derivatives at the reporting date are included under the appropriate category depending on the nature of the derivative.

LLSA holds derivative financial instruments in the form of an interest rate swap. Derivatives are initially recognised at fair value on the date the derivative contract is entered into and are subsequently re-measured at their fair value at the balance sheet date. Changes in the fair value of derivatives are recognised in the surplus or deficit as appropriate.

Taxation

VAT : Any Irrecoverable VAT is charged as a cost to the Statement of Financial Activities.

Taxation status : LLSA has charitable status and is exempt from corporation tax under the provision of s466 of the Income & Corporation Taxes Act 2010.

Operating Leases

Rentals under operating leases are charged to the Statement of Financial Activities on a straight-line basis over the lease term.

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LLSA Limited Financial Statements for the Year Ended 31 July 2025

Statement of Financial Activities

Income
Note
Incoming Resources
Income from charitable activities
1
Total Incoming Resources
Resources Expended
Expenditure on charitable activities :
Depreciation
2
Interest
2
Other
2
Total Resources Expended
Net outgoing resources for the Year
Other Recognised Gains / (Losses)
Change in fair value of financial instrument
9
Net Movement in Funds
Fund balances brought forward 1 August 2024/2023
Prior year adjustment
18
Revised Funds Brought Forward at 1 August 2024/2023
Total Funds Carried Forward at 31 July 2025/2024
10		 Unrestricted
funds
£
1,108,629
1,108,629
296,278
800,255
28,383
1,124,916
(16,287)
(38,277)
(54,564)
(131,971)
-
(131,971)
(186,535)		 Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-		 Total
2025
£
1,108,629
1,108,629
296,278
800,255
28,383
1,124,916
(16,287)
(38,277)
(54,564)
(131,971)
-
(131,971)
(186,535)		 Restated
Total
(Unrestricted
funds)
2024
£
1,153,369
1,153,369
293,839
864,011
11,084
1,168,934
(15,565)
(152,852)
(168,417)
167,696
(131,250)
36,446
(131,971)

The results relate wholly to continuing activities.

The Statement of Financial Activities incorporates the Income and expenditure account.

The notes on pages 18 to 22 form part of these accounts

15

LLSA Limited Financial Statements for the Year Ended 31 July 2025

Balance Sheet as at 31 July

Balance Sheet as at 31 July
Note
Fixed Assets
Tangible assets
5
Current Assets
Debtors
6
Cash at bank and in hand
Creditors: Amounts Falling Due within One Year
7
Net current liabilities
Total assets less current liabilities
Creditors: Amounts Falling Due after One Year
8
Net Assets
Income Funds
Unrestricted funds:
Income and expenditure reserve - unrestricted
10		 2025
£
21,991,057
21,991,057
149,519
1,096
150,615
(8,028,207)
(7,877,592)
14,113,465
(14,300,000)
(186,535)
(186,535)
(186,535)		 Restated
2024
£
18,188,983
18,188,983
627,020
1,280
628,300
(4,449,254)
(3,820,954)
14,368,029
(14,500,000)
(131,971)
(131,971)
(131,971)

The notes on pages 18 to 22 form part of these accounts

Company Registered Number: 06719882

The Financial statements were approved by the Board of Trustees on 20 November 2025 and signed on its behalf by:

J Clague Director

16

LLSA Limited Financial Statements for the Year Ended 31 July 2025

Cash Flow Statement
Net expense for the reporting period
Adjustment for Non-Cash Items
Depreciation
Decrease/( Increase) in debtors
Interest payable
Increase in creditors
Net Cash Flow from Operating Activities
Taxation paid
Cash Flows from Investing Activities
Purchase of tangible fixed assets
Net Cash (used by) Investing Activities
Cash Flows from Financing Activities
Receipt of external loans
Repayment of external loans
Receipt of Intercompany loans
Interest paid on loans
Net Cash generated from Financing Activities
Change in Cash in the Year
Cash at the beginning of the year
Cash at the end of the year
Analysis of Cash and Cash Equivalents
Cash in hand		 2025
£
(54,564)
296,278
477,501
800,255
3,578,953
5,098,423
-
(4,098,352)
(4,098,352)
-
(200,000)
-
(800,255)
(1,000,255)
(184)
1,280
1,096
1,096		 Restated
2024
£
(168,417)
293,839
(269,462)
864,011
2,721,707
3,441,678
-
(2,378,309)
(2,378,309)
-
(200,000)
-
(864,011)
(1,064,011)
(642)
1,922
1,280
1,280

The notes on pages 18 to 22 form part of these accounts

17

LLSA Limited Financial Statements for the Year Ended 31 July 2025 Notes to the Financial Statements

1 Analysis of Income

Unrestricted
Rental and leasing income - 5D
Rental and leasing income - Meditech
Rental and leasing income - group companies
2
Analysis of Expenditure
Unrestricted
Depreciation
Interest payable
Other		 2025
£
57,524
28,762
1,022,343
1,108,629
2025
£
296,278
800,255
28,383
1,124,916		 2024
£
48,759
29,273
1,075,337
1,153,369
2024
£
293,839
864,011
11,084
1,168,934

The total expenses paid to or on behalf of trustees was £nil (2024 : nil).

Analysis of Expenditure on Charitable Activities

Property Rental
Property Rental		 2025
Total
£
£
£
£
1,096,533
12,783
15,600
1,124,916
Governance
Support costs
Activities
undertaken
directly
1,096,533
12,783
15,600
1,124,916
Restated
2024
Total
£
£
£
£
1,157,850
835
10,249
1,168,934
Governance
Activities
undertaken
directly
Support costs
1,157,850
835
10,249
1,168,934

The total support and governance costs (note 3) attributable to charitable activities have been applied to the Property Rental used for charitable purposes.

Expenditure on charitable activities was £1,096,533 of which £1,096,533 was unrestricted and £nil was restricted (2024: £1,168,934, all unrestricted).

3 Support Cost Allocation

Core administration
Direct governance costs
Core administration
Direct governance costs		 2025
Total
£
£
£
12,783
-
12,783
-
15,600
15,600
General
support costs
Governance
function
12,783
15,600
28,383
2024
Total
£
£
£
835
-
835
-
10,249
10,249
Governance
function
General
support costs
835
10,249
11,084

Basis of support costs allocation

General support costs have been fully allocated to Property Rental used for charitable purposes.

18

LLSA Limited Financial Statements for the Year Ended 31 July 2025 Notes to the Financial Statements

4 Analysis of Governance Costs

4 Analysis of Governance Costs
2025 2024
£ £
Financial statement auditor's remuneration
Financial statements audit 15,600 10,249
15,600 10,249
5 Tangible fixed assets
Freehold land Fixtures,
and buildings fittings and Total
LLSA £ £
Cost or valuation
At 1 August 2024 18,797,007 - 18,797,007
Additions 4,080,224 18,128 4,098,352
At 31 July 2025 22,877,231 18,128 22,895,359
Depreciation
At 1 August 2024 608,024 - 608,024
Charge for the year 296,278 - 296,278
At 31 July 2025 904,302 - 904,302
Net book value at 31 July 2025 21,972,929 18,128 21,991,057
Net book value at 31 July 2024 18,188,983 - 18,188,983
Financed by other 21,972,929 18,128 21,991,057
21,972,929 18,128 21,991,057
Land with a net book value of £1,650,000 is held within Freehold land and buildings and is not depreciated
6 Debtors
2025 2024
£
Prepayments and accrued income - 46,726
Interest rate swap debtor - 13,671
Taxation and social security 74,719 487,575
Amounts owed by group undertakings 74,800 79,048
149,519 627,020

July 2024 Prepayments and accruals included rent accruals and an amount of £13,671 in relation to an interest rate swap on the long term secured loan, held at fair value at the balance sheet date.

July 2024 Taxation and social security receivables of £487,575 represented VAT reclaimable on building renovations in the LLSA building. This amount was received during 2024/25.

7 Creditors : Amounts Falling Due Within One Year

Bank Loans and Overdrafts
Short term element of secured loan
Trade Creditors
Interest rate swap creditor
Accruals and deferred income		 2025
£
7,160,853
200,000
39,004
24,604
603,746
8,028,207		 2024
£
3,198,675
200,000
4
-
1,050,575
4,449,254

19

LLSA Limited Financial Statements for the Year Ended 31 July 2025 Notes to the Financial Statements

8 Creditors : amounts falling due after 1 year

2025
£
Bank Loans and Overdrafts
5,300,000
Amounts owed to group undertakings
9,000,000
14,300,000
Analysis of loans
2025
£
Total loans (falling due within and after 1 year) are comprised as follows :
Secured loans
Due within 1 year or on demand (Note 7)
200,000
Due between one and two years (Note 8)
200,000
Due between two and five years (Note 8)
5,100,000
Total loans
5,500,000
Intercompany loan due between two and five years
9,000,000
Total loans
14,500,000
The external secured loan facilities comprise :
Secured loan with HSBC
5,500,000
5,500,000		 2024
£
5,500,000
9,000,000
14,500,000
2024
£
200,000
200,000
5,300,000
5,700,000
9,000,000
14,700,000
5,700,000
5,700,000

The £9,000,000 intercompany loan is with the ultimate holding company, Liverpool School of Tropical Medicine. The loan is an unsecured 5 year loan and interest is charged on a daily basis. The interest rate is 1% above the Bank of England base rate.

The £5,500,000 secured loan is with HSBC. The loan is a 5 year loan secured on the Liverpool Life Science Accelerator building purchased by the company for £15,000,000 in November 2022. Capital is repayable at a fixed rate of £50,000 per quarter with the remaining balance due at the end of the 5 year term in November 2027. Variable Interest is payable quarterly and is calculated daily as the aggregate of the margin and compounded HSBC reference rate. The loan is secured against the Liverpool Life Science Accelerator building.

9 Financial Instruments

The carrying value of LLSA's financial assets and liabilities are summarised by category below

Financial assets
Financial assets that are measured at amortised cost
Financial asset measured at fair value through surplus
or deficit
Financial liabilities
Financial liabilities measured at amortised cost
Financial liabilities measured at fair value through
surplus or deficit		 2025
£
75,896
-
13,103,604
-		 2024
£
80,328
60,397
9,949,254
-

Financial assets measured at amortised cost comprise cash and cash equivalents, cash held on deposit and amounts owed to group undertakings.

Financial assets measured at fair value through surplus of deficit comprises an interest rate swap.

Financial liabilities measured at amortised cost comprise trade creditors amounts owed to group undertakings and accruals.

20

LLSA Limited Financial Statements for the Year Ended 31 July 2025 Notes to the Financial Statements

LLSA's income, expense, gains and losses in respect of financial instruments are summarised below :

2025 2024 £ £ Fair value gains and (losses) On derivative financial assets and liabilities measured at (38,276) (152,852) fair value through income and expenditure

10 Income funds

Income funds are analysed as follows:

Unrestricted
Income and expenditure reserve		 Balance
Income
Expenditure
Balance
31 July 2024
31 July 2025
£
£
£
£
£
(131,971) 1,108,629
(1,124,916)
(38,277)
(186,536)
Other
recognised
gains and
losses
(131,971)
1,108,629
(1,124,916)
(38,277)
(186,536)

The net outgoing resources of £16,288 reflects a small surplus incurred by LLSA through its Property rental activities offset by a £21,875 cost to reflect component accounting in fixed assets (see accounting policy note). Additionally there were unrealised losses of £38,276 on the interest rate swap.

11 Analysis of Net Assets Between Funds
11
Analysis of Net Assets Between Funds
Fixed Assets
Current assets
Current liabilities
Long Term liabilities
Total net liabilites
Fixed Assets
Current assets
Current liabilities
Long Term liabilities
Total net assets
12
Operating lease receivables
Amounts due in less than one year
Amounts due between one and five years
Amounts due after 5 years		 2025
Restricted
Unrestricted
Total
funds
funds
£
£
£
-
21,991,057
21,991,057
-
150,615
150,615
- (8,028,207)
(8,028,207)
-(14,300,000)
(14,300,000)
-
(186,536)
(186,536)
Restated
2024
Restricted
Unrestricted
Total
funds
funds
£
£
£
-
18,188,983
18,188,983
-
628,300
628,300
- (4,449,254)
(4,449,254)
-(14,500,000)
(14,500,000)
-
(131,971)
(131,971)
2025
2024
£
£
769,131
1,061,317
2,191,444
2,137,384
6,950,880
6,426,941
9,911,455
9,625,643		 2025
Restricted
Unrestricted
Total
funds
funds
£
£
£
-
21,991,057
21,991,057
-
150,615
150,615
- (8,028,207)
(8,028,207)
-(14,300,000)
(14,300,000)
-
(186,536)
(186,536)
Restated
2024
Restricted
Unrestricted
Total
funds
funds
£
£
£
-
18,188,983
18,188,983
-
628,300
628,300
- (4,449,254)
(4,449,254)
-(14,500,000)
(14,500,000)
- (131,971)
(131,971)
2024
£
1,061,317
2,137,384
6,426,941
9,625,643

LLSA is lessor to LSTM and IVCC within the LSTM group and to two external tenants. The amounts above reflect the non cancellable future lease payments due to LLSA.

13 Related Party Transactions

During 2025, rents totalling £995k were received from LLSA’s parent company Liverpool School of Tropical Medicine (LSTM)(2024 : £1,039k) ; As at 31 July 2025 there was an outstanding inter-company balance of £260k debtor owed by LSTM relating rents owed (2024 : £476k)

21

LLSA Limited Financial Statements for the Year Ended 31 July 2025 Notes to the Financial Statements

During 2025, rents totalling £27k were received from LLSA’s sister company IVCC (2024 : £36k); As at 31 July 2025 there was an outstanding inter-company balance of £9k debtor owed by IVCC to LLSA relating to rents owed (2024 : £12k)

During 2025, no loans were made by LLSA’s parent company Liverpool School of Tropical Medicine (LSTM) (2024 : £Nil) and interest of £508k was paid (2024 : £564k); As at 31 July 2025 there was an outstanding inter-company balance of £49k creditor owed by LLSA in relation to loan interest (2024 : £50k)

There were no related party transactions involving the Trustees of LLSA as declared in the disclosure of interests.

14 Ultimate Controlling Party

The Trustees consider that the ultimate controlling party is Liverpool School of Tropical Medicine, a company registered in England and Wales (company no. 00083405), which is also a registered UK charity (charity no. 222655) and regulated by the Office for Students. LSTM is the parent company of LLSA by virtue of it being the sole member of the company limited by guarantee. LSTM's mission is improving health outcomes in disadvantaged populations globally through partnership in research and education.

The group accounts are publicly available from Companies House.

15 Capital Commitments

Capital Commitments
Building capital works - Air HC
Building capital works - Human Challenge Facility		 2025
£
3,031,760
361,384
3,393,144		 2024
£
-
2,409,761
2,409,761

16 Contingent Liabilities

A composite cross guarantee structure exists between Liverpool School of Tropical Medicine, IVCC, Well Travelled Clinics Limited, Liverpool International Health Ventures Limited, Liverpool International Health I.P. Limited, LSTM Consulting Limited, Liverpool Life Science Accelerator Limited and iiDiagnostics Limited in respect of bank overdrafts. The aggregate amount outstanding under this agreement at the balance sheet date was £8,429,011 (2024: £4,413,792).

17 Reconciliation of net funds

Net funds 1 August 2024/23
Movement in cash and cash equivalents
Other non-cash changes
Net funds 31 July 2025/24
Change in net funds
Analysis of net funds:
Cash and cash equivalents
Financial assets held at fair value
Net funds		 2025
£
1,280
(184)
1,096
(184)
2025
£
1,096
-
1,096		 2024
£
1,922
(642)
1,280
(642)
2024
£
1,280
-
1,280

18 Prior year adjustments

LLSA has included component accounting for the years to 31 July 2024 and 2025. During 2025 the impact of component accounting on the depreciation expense in LLSA was identified as material. Therefore the prior year has been restated to reflect the increase in depreciation from inception to 31 July 2024. The impact on income and expenditure, and on assets and liabilities, for these entries in the prior year are shown below.

Depreciation expense - increase in
Accumulated depreciation - increase in
Reconciliation of opening net funds
Income and expenditure reserve - unrestricted		 2024
£
21,875
153,125
Restated
2024
Adjustment
2024
£
£
£
21,154
(153,125)
(131,971)		 2024
£
21,875
153,125

22