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2025-09-30-accounts

Charity registration number 1200788

KNIGHTON FREE CHURCH

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

KNIGHTON FREE CHURCH

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Joshua Radford Jonathan Barrett John Smuts Joshua Errawella (Resigned 1 July 2025) Rodney Green Philip Raine (Appointed 18 March 2025) Charity number 1200788 Company number CE030488 Principal address Brinsmead Road Knighton Leicester LE2 3WB Independent examiner Paul Barnett FCCA Newby Castleman LLP West Walk Building 110 Regent Road Leicester LE1 7LT Bankers CAF Bank Limited 25 Kings Hill Avenue West Malling Kent ME19 4JQ Kingdom Bank Media House Padge Road Beeston Nottingham NG9 2RS

KNIGHTON FREE CHURCH

CONTENTS

Page
Trustees' report 1 - 5
Independent examiner's report 6
Statement of financial activities 7
Balance sheet 8
Notes to the financial statements 9 - 23

KNIGHTON FREE CHURCH

TRUSTEES' REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2025

The trustees present their annual report and financial statements for the Church for the year ended 30 September 2025.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's constitution, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The objects of the Church are:

The vision of Knighton Free Church (KFC) is to proclaim and demonstrate 'Christ in us. Christ through us. Christ for all.' We seek to commend to our generation the faith, hope and love that God has given us in His Son Jesus Christ.

Activities

Our commitment to grow as a faith community in worshipping Christ in Spirit and in truth continues to be reflected in a wide range of activities. We know this requires us to combine our conviction about the Lordship of Christ with gracious humility towards others of different perspectives. We have a particular focus on reaching and serving the needs of young people whether they are members of the church or merely visitors from the local community. The Elders seek to ensure that all our activities respect the inspiration of God’s Word so that the authority of the Holy Spirit of God speaking through Scripture governs our rule of faith and life.

Sunday services together with most other meetings are open to all. The 10.30am and the 7pm services are generally streamed for those unable to attend. The public benefit of collective worship and prayer is therefore experienced across a wide local community as well as further afield, including internationally. Our common life of worship and prayer includes activities for all ages and stages. While there is much overlap in the composition of congregations for different services, the Sunday 9am service has a particular focus on adults as there is no particular provision for children. The 10:30am service is designed for the whole congregation, particularly families. The 7pm service offers a more contemporary feel with a significant degree of participation making it especially attractive to students and young people.

Regular activities throughout the week are held for all age-groups from babies and toddlers to retired people. We continue to be blessed with large numbers of children and young people attending both midweek and Sunday morning groups. Several young people from other churches attend Knightlife as their youth group to enjoy Christian fellowship. Other groups, such as the Family Hub and Nippers, welcome those who are neither official church members nor attending Sunday services. None of this would be possible without the many volunteers who faithfully serve in the life of the church, both in people facing roles such as leading in a youth group, as well as in practical roles such as setting up the building. The readiness of volunteers to serve their wider community remains a strength of the church.

In all our activities we continue to improve our accessibility to people with additional needs. Not only have we made the building more accessible, we also strive to ensure that our oral, visual and written communications are as sensitive as possible to the widest spectrum of needs. We have made progress in welcoming everyone whatever their background, age or additional needs. This remains an ongoing learning experience in dialogue with those concerned.

KNIGHTON FREE CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

Safeguarding

The safeguarding of children and vulnerable adults is seen as a key responsibility of the Church. Following last year’s review, the church remains a member of Thirtyone:Eight which is an independent, external charitable organisation specialising in creating safer spaces and providing safeguarding support. We seek advice from them as required for our safeguarding policies and procedures and for our ongoing program of training. We seek to provide the safest possible environment, particularly in high trust contexts that churches typically offer. The trustees are grateful for the commitment to safeguarding of the many volunteers serving within KFC. This is demonstrated by the significant attendance of church members and leaders at training sessions that are designed to ensure that the details of our Safeguarding Policy are understood and translated into practice. DBS checks are regularly renewed. We are very grateful to the 3 volunteers who comprise our safeguarding team.

Achievements and performance

The public benefits of worship and of participating in Holy Communion extend principally to those within the faith community. But it is well known that there are many benefits from meeting together, singing together and serving one another which extend to the wider community, including visitors and those exploring faith issues. The church serves as a place for the community to gather, to foster social connections and to build resilient networks. We provide a range of important services, many of which extend to whole families and offer refreshments at no cost to the community. Our teachings promote ethical values and thoughtful decision-making to develop children and young people, to support couples, parents and singles, and to care for older people. We model sacrificial volunteering and financial giving to others demonstrating the value of an outward facing community.

Our worship services focus on the reality of our risen Saviour, Jesus Christ. We believe he is at work in our world through his Holy Spirit seeking to save those who are lost even while he is also seated at the right hand of Almighty God, our heavenly Father. These are profound truths that have shaped British society for centuries and will continue to do so fruitfully in the future. We will have to continue adapting to our changing social and economic context. Leicester is one of the UK’s fastest growing areas; one of the most youthful; one of the most diverse with 240 faith groups and more than 70 languages spoken. This richly diverse community presents enormous challenges and opportunities which we embrace open heartedly. KFC is a friendly, all-age church with a family feel and a strong sense of unity. We have an enviable mix of men, women and children from varied socio-economic and ethnic backgrounds. The church fellowship is mostly drawn from south Leicester and surrounding villages with a membership of around 200. We hold to a congregational order of church with our members responsible for the appointment of the Elders and Pastors.

Church ministry is divided into identified areas. These include compassion ministries; families, children and youth; pastoral care; safeguarding; women's ministry; welcoming; financial management and others. As a member of the FIEC, we hold to a male eldership. Nevertheless, men and women are identified to lead these different areas of ministry and are encouraged to convene small teams to support their work. Plans are also in hand to appoint a Women's Ministry Lead as a senior member of the staff team. This enables a wide spectrum of people to use their gifts, interests and experience for the common good. The vast majority of service is therefore undertaken by volunteers. Each Deacon is supported by a lead Elder who provides advice and direction as appropriate. Training and appraisal is being developed in a light touch and proportionate manner to ensure that the best use is made of willing, but scarce, resources.

We also have regular events aimed at families from both church and the local community, The Family Hub. It includes games and crafts, singing, a Bible story and food. It is normally held on the first Saturday afternoon of the month. The Church also supported the Knighton Park Show taking a stand that gave the local community a chance to find out who we are and what we do.

For many years we have run a residential Christian camp for children and young people attending KFC, other churches & their friends. Across each camp there are a variety of activities, games, trips and more. Each camp also meets together each day to sing, pray and learn more about Jesus and what it means to follow God today through what the Bible says. This is a significant commitment by the volunteers and staff who give their time to oversee the camps. But the impact over many years has been substantial and many testify to the experiences on camp having shaped the rest of their lives and service in the church. This year was a particularly significant year for a number of young people becoming more fully committed to Christ and enthused in their faith. We do not take these summer youth camps for granted and are extremely grateful to those who serve them.

KNIGHTON FREE CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

Public benefit further afield

KFC is involved with organisations working locally, nationally and internationally. These include:

Financial review

The results for the year ended 30 September 2025 are shown in the Statement of Financial Activities on Page 7. This, together with the balance sheet on page 8 should be read in conjunction with the related notes in accordance with the Charities SORP (FRS 102)

Total income for the year amounted to £432,319 (2024 - 432,834) The principal funding source was donations and legacies. Total expenditure for the year amounted to £409,847 (2024 - £414,140) A breakdown of expenditure is set out in the notes to the financial statements. Both income and expenditure are closely monitored.

Our trading subsidiary continues to provide retirement accommodation for elderly Christians. The trading results are detailed in note 16 to the accounts.

Reserves policy

The Trustees have reviewed the reserves of the Church. They concluded that the policy is to maintain free reserves at a level which equates to at least three months unrestricted fund expenditure, amounting to approximately £96,000. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Church’s current activities whilst consideration is given to ways in which additional funds may be raised. The Trustees define their free reserves as being total general funds less unrestricted tangible fixed assets and as at 30 September 2025 this amounted to £233,500. Within this amount includes various designated funds, and the total unrestricted general funds amounts to £174,086.

Investment policy

In accordance with the terms of the Constitution, the investment powers are:

The investments held by the Church continue to be social investments rather than financial investments. The Trustees have regard to their statutory duties in terms of investments which includes a periodic review of their holdings. Details of investments are summarised in note 16 to the accounts.

KNIGHTON FREE CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

Major risks

The Trustees have assessed the major risks to which the Church is exposed. A risk register is in place to mitigate them. The most significant foreseeable risks were identified as follows:

Plans for future periods

KNIGHTON FREE CHURCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

Structure, governance and management

Knighton Evangelical Free Church became a registered charity on 14 April 2009 in accordance with the legal requirement for churches to register as charities. On 5 April 2015 the name was changed to Knighton Free Church. It nevertheless remains an Evangelical Church. Under a new CIO constitution, the Church Council continues to be responsible for the management of the affairs of the Church. The Church Council consists of the Elders of the Church. As an incorporated body it has a legal personality of its own. This means it can enter into contracts in its own name. It can employ staff rather than requiring trustees to do this. It can own property in its own name. The Elders/trustees will review these options from time to time to decide whether there may be advantages in exploring them further in the future.

The Church is affiliated to The Fellowship of Independent Evangelical Churches, the Evangelical Alliance and the Midlands Gospel Partnership. Our Pastors also have personal networks that help local churches to collaborate in mutual support.

The trustees who served during the year and up to the date of signature of the financial statements were: The trustees who served during the year and up to the date of signature of the financial statements were:
Joshua Radford
Jonathan Barrett
John Smuts
Joshua Errawella (Resigned 1 July 2025)
Rodney Green
Philip Raine (Appointed 18 March 2025)

Recruitment and appointment of trustees

Pastors shall be nominated by the Church Council and be elected by the admitted members of the Church by a special resolution passed at a special Church meeting.

Nomination for Eldership shall be made by the Church Council and be submitted to the Church for consideration as a special resolution at a special Church meeting. Elders are elected for a term of up to 5 years and shall then be eligible for re-election to a similar 5 year term. They will not be eligible to serve a third term for 12 months after the end of their second term.

The Pastor and Elders are the Officers of the Church and the Managing Trustees of KFC. When a new Managing Trustee is appointed, they are provided with a copy of the latest annual report and accounts of the Church, the Constitution and Church procedures and other relevant documentation.

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

Rodney Green Trustee

10 March 2026

KNIGHTON FREE CHURCH

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF KNIGHTON FREE CHURCH

I report to the trustees on my examination of the financial statements of Knighton Free Church (the Charity) for the year ended 30 September 2025.

Responsibilities and basis of report

As the trustees of the Charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the Charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the Charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.

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

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

P T Barnett FCCA (Independent Examiner)

Dated: 10 March 2026

Newby Castleman LLP West Walk Building 110 Regent Road Leicester LE1 7LT

KNIGHTON FREE CHURCH

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 30 SEPTEMBER 2025

Unrestricted
Restricted
funds
funds
2025
2025
Notes
£
£
Income from:
Donations and legacies
3
346,728
24,019
Charitable activities
4
42,787
8,838
Other trading activities
5
3,329
-
Investments
6
6,594
24
Total
399,438
32,881
Charitable activities
7
384,100
25,747
Net income
15,338
7,134
Transfers between funds
19/20
741
(741)
Net movement in funds
16,079
6,393
Reconciliation of funds:
Total funds brought forward
668,859
367,275
Total funds carried forward
684,938
373,668		 Total
2025
£
370,747
51,625
3,329
6,618
432,319
409,847
22,472
-
22,472
1,036,134
1,058,606		 Total
2024
£
389,302
35,790
2,940
4,802
432,834
414,140
18,694
-
18,694
1,017,440
1,036,134

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

KNIGHTON FREE CHURCH

BALANCE SHEET

AS AT 30 SEPTEMBER 2025

Notes
Fixed assets
Tangible assets
14
Investments
15
Current assets
Debtors
16
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within one
year
17
Net current assets
Total assets less current liabilities
Funds of the Charity
Restricted funds
19
Unrestricted funds
20
Total charity funds		 2025
£
£
451,854
346,430
798,284
48,923
223,735
272,658
12,336
260,322
1,058,606
373,668
684,938
1,058,606		 2024
£
£
470,611
345,430
816,041
53,665
178,505
232,170
12,077
220,093
1,036,134
367,275
668,859
1,036,134		 2024
£
£
470,611
345,430
816,041
53,665
178,505
232,170
12,077
220,093
1,036,134
367,275
668,859
1,036,134
816,041
220,093
1,036,134
367,275
668,859
1,036,134

The notes on pages 9 to 23 form part of these financial statements.

The financial statements were approved and authorised by the board of trustees on 10 March 2026 and are signed on its behalf by:

Rodney Green Trustee

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

1 Accounting policies

Charity information

Knighton Free Church is governed by its Constitution.

1.1 Basis of preparation

The financial statements have been prepared in accordance with the Charity's Constitution, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102.

The Charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

1.2 Going concern

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

1.3 Charitable funds

Funds held by the Church are:

Unrestricted funds – these are funds which can be used in accordance with the charitable objects at the discretion of the Trustees. Unrestricted funds include designated funds where the Trustees, at their discretion, have created a fund for a specific purpose.

Restricted funds – these are funds that can only be used for particular restricted purposes within the objects of the Church. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Expenditure which meets the criteria is subsequently charged to the fund.

1.4 Income

All income is recognised once the Church has entitlement to the income, it is probable that the income will be received and the amount can be quantified with reasonable accuracy.

No amounts are included in the accounts for services donated by volunteers.

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

1 Accounting policies

(Continued)

1.5 Expenditure

All expenditure is accounted for on an accruals basis and is classified under headings that aggregate all costs relating to the category.

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

Expenditure on charitable activities is divided into youth activities, adult activities and overseas work.

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

Support costs

Support costs are those that assist the work of the Church but do not directly represent charitable activities and include office costs and governance costs. They are incurred directly in support of expenditure in line with the objectives of the Church. Support costs are allocated to expenditure on charitable activities on a basis consistent with use of the resources.

The analysis of these costs is included in note 10.

1.6 Tangible fixed assets

Tangible fixed assets are measured at cost, net of depreciation and any impairment losses.

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

Freehold land and buildings Not depreciated Improvements to freehold building 2% on cost Furniture and equipment 10% on cost Computer Equipment 33.3% on cost Motor vehicles 25% on cost

No depreciation has been provided on freehold buildings because the trustees consider the residual value to be higher than the carrying amount.

1.7 Fixed asset investments

Fixed asset investments comprise a programme related investment in the form of shares in a subsidiary company. The primary motivation for the investment is to further the objects of the Church rather than to generate a financial return. The shares are measured and included in the accounts at par value (cost) less impairment because its fair value cannot be measured reliably. The Trustees have a pre-emption, in their favour, to acquire any shares of any class from Knighton Evangelical Care Limited as they become available at their par value.

1.8 Impairment of fixed assets

At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated and compared to the carrying amount in order to determine the extent of the impairment loss (if any). Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the Statement of Financial Activities (SOFA) unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

1 Accounting policies

(Continued)

1.9 Cash and cash equivalents

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.

1.10 Financial instruments

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

Debtors and creditors with no stated interest rate and receivable or payable within one year are measured at transaction price. Any losses arising from impairment are recognised in the SOFA.

1.11 Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

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

1.12 Retirement benefits

Payments to the defined contribution retirement benefit scheme and payments to other personal pension schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

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

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

The trustees do not consider there to be any key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements.

3 Income from donations and legacies

Unrestricted
Restricted
funds
funds
2025
2025
£
£
Donations
285,817
19,839
Legacies receivable
5,409
-
Gift Aid
55,502
923
Special Appeals
-
3,257
346,728
24,019		 Total
Unrestricted
Restricted
funds
funds
2025
2024
2024
£
£
£
305,656
242,795
19,742
5,409
66,886
-
56,425
46,049
2,300
3,257
-
11,530
370,747
355,730
33,572		 Total
2024
£
262,537
66,886
48,349
11,530
389,302

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

4 Income from charitable activities

Unrestricted
Restricted
funds
funds
2025
2025
£
£
Advancement of the Christian Faith
Weekend away
-
-
Church groups
42,787
8,838
42,787
8,838		 Total
Unrestricted Restricted
funds
funds
2025
2024
2024
£
£
£
-
7,021
-
51,625
27,099
1,670
51,625
34,120
1,670		 Total
2024
£
7,021
28,769
35,790

5 Income from other trading activities

Unrestricted
Restricted
funds
funds
2025
2025
£
£
Room hire
800
-
Other
2,529
-
3,329
-		 Total
Unrestricted
Restricted
funds
funds
2025
2024
2024
£
£
£
800
650
-
2,529
2,290
-
3,329
2,940
-		 Total
2024
£
650
2,290
2,940

6 Income from investments

Unrestricted
Restricted
funds
funds
2025
2025
£
£
Bank interest
3,334
24
Interest on Gift Aid
recoverable
435
-
Solar Panel income
2,825
-
6,594
24		 Total
Unrestricted
Restricted
funds
funds
2025
2024
2024
£
£
£
3,358
1,999
23
435
153
22
2,825
2,605
-
6,618
4,757
45		 Total
2024
£
2,022
175
2,605
4,802

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

7 Expenditure on charitable activities

Activities
undertaken
directly
Note 8
£
Youth activities
74,868
Adult activities
136,187
Overseas work
9,939
220,994
Unrestricted funds
Restricted funds		 Grant
funding
Note 9
£
20,400
12,732
59,154
92,286		 Support
Costs
Note 10
£
42,963
52,441
1,163
96,567		 Total
2025
£
138,231
201,360
70,256
409,847
384,100
25,747
409,847		 Total
2024
£
135,136
193,708
85,296
414,140
381,167
32,973
414,140

8 Expenditure on activities undertaken directly

Youth
activities
Adult
activities
Overseas
work
£
£
£
Staff costs
31,597
118,486
7,899
Romanian Church programme
-
-
2,040
North Evington Church programme
-
5,000
-
Home for Good
-
-
-
Preachers' fees and expenses
-
1,650
-
Evangelistic events
1,227
2,187
-
Weekend away
-
-
-
Church groups
42,044
8,864
-
74,868
136,187
9,939		 Total
2025
£
157,982
2,040
5,000
-
1,650
3,414
-
50,908
220,994		 Total
2024
£
146,486
2,268
5,000
6,963
1,295
4,425
7,984
33,353
207,774
Total 2024 £ 8,627 15,000 15,906 3,500 5,500 6,600 8,000 500 2,442 900 8,103 12,585 860 88,523 9,500 9,000 107,023
Overseas work 2024 £ 8,627 15,000 15,906 - - 6,600 - - - - 6,071 12,585 - 64,789 - 9,000 73,789
Adult activities 2024 £ - - - - - - 8,000 500 2,442 - 2,032 - 360 13,334 - - 13,334
Youth activities 2024 £ - - - 3,500 5,500 - - - - 900 - - 500 10,400 9,500 - 19,900
Total 2025 £ 10,000 15,000 3,977 3,500 5,500 7,200 8,000 500 2,500 900 2,832 12,487 1,390 73,786 9,500 9,000 92,286
Overseas work 2025 £ 10,000 15,000 3,977 - - 7,200 - - - - 1,490 12,487 - 50,154 - 9,000 59,154
Adult activities 2025 £ - - - - - - 8,000 500 2,500 - 1,342 - 390 12,732 - - 12,732
Youth activities 2025 £ - - - 3,500 5,500 - - - - 900 - - 1,000 10,900 9,500 - 20,400
Expenditure on grant funding Grants to institutions for missionary support: El Alfarero Interserve UFM Worldwide UCCF Friends International Arab World Ministries Grants to institutions and their purposes: Open Hands - food bank Midlands Gospel Partnership - collaboration Saffires - women in sex industry TLG Early Intervention - children and families Special Appeals Great Change Church - Ukraine Other (£500 or less) Grants to individuals for missionary support: Kay and Steve Morgan-Gurr Beni and Ioana Handaric
9

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

10 Expenditure on support costs

Travel and minibus expenses
Light and heat
Water and general insurance
Repairs, cleaning and waste disposal
Subscriptions
Books and training
Telephone, internet, printing and computer
Professional fees
Miscellaneous expenses
Governance costs
Depreciation
Loss on disposal of assets
Analysed between:
Youth activities
Adult activities
Overseas work		 2025
£
2,581
7,664
5,569
21,427
10,434
3,254
5,224
7,671
4,866
7,374
19,862
641
96,567
42,963
52,441
1,163
96,567		 2024
£
4,603
5,167
3,923
19,873
9,856
3,336
5,967
9,743
7,223
7,434
20,051
2,167
99,343
42,470
54,958
1,915
99,343

Support costs are allocated between the various charitable activities on a basis consistent with the use of resources.

The amount charged to the SOFA in respect of independent examiner’s fee was: - Examination £3,318 (2024: £3,345)

11 Employees

The average monthly number of employees during the year was:

2025
Number
Ministry
3
Administration
1
Total
4		 2025
2024
FTE
Number
3
3
1
3
4
6		 2024
FTE
3
2
5

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

11
Employees
Employment costs
Wages and salaries
Social security costs
Other pension costs		 (Continued)
2025
2024
£
£
139,965
135,557
6,943
1,521
11,074
9,408
157,982
146,486		 (Continued)
2025
2024
£
£
139,965
135,557
6,943
1,521
11,074
9,408
157,982
146,486
146,486

There were no employees whose annual remuneration was more than £60,000.

12 Trustees

Remuneration was paid to the Trustees (as permitted by the Church Constitution) as follows:

J Smuts, Pastor
Salary
J Smuts, Pastor
Pension costs
J Barrett, Associate Pastor
Salary
J Barrett, Associate Pastor
Pension costs
Total remuneration paid to Trustees		 2025
£
46,238
3,779
50,017
36,682
3,014
39,696
89,713		 2024
£
30,062
2,465
32,527
35,350
2,911
38,261
70,788

The above remuneration was paid to the Trustees in return for their ministerial services to the Church. No remuneration was paid to the Trustees for their roles as Trustees of the Church.

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

12 Trustees

(Continued)

Two Trustees (2024: Two Trustee) were reimbursed expenses as follows:

Hospitality allowance
Telephone and internet
Conferences
Travel and subsistence
Sundry		 2025
£
2,000
135
-
356
-
2,491		 2024
£
1,750
138
15
392
11
2,306

13 Taxation

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

14 Tangible fixed assets

Freehold
land and
buildings
Improvem
ents to
freehold
building
Furniture
and
equipment
Computer
Equipment
Motor
vehicles
£
£
£
£
£
Cost
At 1 October 2024
60,778
518,668
123,053
6,214
6,600
Additions
-
-
1,335
409
-
Disposals
-
-
(2,413)
(303)
-
At 30 September 2025
60,778
518,668
121,975
6,320
6,600
Depreciation and impairment
At 1 October 2024
-
157,549
76,850
3,701
6,600
Depreciation charged in the year
-
11,010
7,452
1,400
-
Eliminated in respect of disposals
-
-
(1,772)
(303)
-
At 30 September 2025
-
168,559
82,530
4,798
6,600
Carrying amount
At 30 September 2025
60,778
350,109
39,445
1,522
-
At 30 September 2024
60,778
361,120
46,201
2,512
-		 Total
£
715,313
1,744
(2,716)
714,341
244,700
19,862
(2,075)
262,487
451,854
470,611

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

15 Fixed asset investments

Unlisted
investment in
subsidiary
£
Cost
At 1 October 2024 345,430
Additions 1,000
At 30 September 2025 346,430

Knighton Evangelical Care Limited has a 31 March year end. The aggregate capital and reserves and the results for the year ended 31 March 2025 of the subsidiary (not consolidated) for the year were as follows:

Capital and Profit for the
reserves year after
taxation
£ £
Knighton Evangelical Care Limited 1,378,187 47,465
16 Debtors
2025 2024
Amounts falling due within one year: £ £
Other debtors 10,880 259
Prepayments and accrued income 38,043 53,406
48,923 53,665
17 Creditors: amounts falling due within one year
2025 2024
£ £
Other taxation and social security 2,338 3,148
Other creditors 964 895
Accruals and deferred income 9,034 8,034
12,336 12,077

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

18 Retirement benefit schemes

The Church contributes 8% of pensionable salary for all eligible employees into a personal pension scheme of their choice, if they accept the offer.

The Church also operates a defined contribution pension scheme for other qualifying employees. The assets of the scheme are held separately from those of the charitable organisation in an independently administered fund.

The charge to the SOFA in respect of retirement benefit contribution was £11,074 (2024: £9,408), all of which was unrestricted.

19 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1
Accommodation for the Elderly
New Life
Special Appeals
Knightlife
There is Hope
Ukraine
Invited: Women's Ministry
Evacuation Chair
Previous year:
At 1
Accommodation for the Elderly
New Life
Special Appeals
Home for Good
Knightlife
There is Hope
Ukraine		 October
2024
Incoming
resources
Resources
expended
Transfers
At 30
September
2025
£
£
£
£
£
345,430
1,000
-
-
346,430
2,072
8,365
(8,465)
27
1,999
-
3,257
(2,832)
-
425
749
-
(749)
-
-
1,981
-
(416)
-
1,565
17,043
18,594
(12,488)
-
23,149
-
498
(398)
-
100
-
1,167
(399)
(768)
-
367,275
32,881
(25,747)
(741)
373,668
October
2023
Incoming
resources
Resources
expended
Transfers
At 30
September
2024
£
£
£
£
£
344,429
1,001
-
-
345,430
2,000
443
(371)
-
2,072
218
11,530
(9,716)
(2,032)
-
7,430
33
(6,963)
(500)
-
-
1,250
(501)
-
749
4,818
-
(2,837)
-
1,981
6,566
21,030
(12,585)
2,032
17,043
365,461
35,287
(32,973)
(500)
367,275

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

19 Restricted funds

(Continued)

Accommodation for the Elderly: to provide accommodation for elderly Christians near to the Church premises. This objective has been fulfilled in “Knighton Homes”, which is run by Knighton Evangelical Care Limited.

New Life: to provide a programme of activities for senior citizens and to support Missionary organisations. During the year £27 has been transferred from general unrestricted funds.

Special Appeals: to support various appeals both in the U.K. and overseas. Transfers last year comprise £2,032 which was transferred to Ukraine fund being the money raised during the Christmas Appeal.

Home for Good: to raise awareness of fostering and adoption and to support adoptive and foster families. This was closed last year and the remaining balance was distributed to other charities with similar aims. A transfer was made last year of £500 to Knighton Free Church as gift for the support they provided.

Knightlife: to provide a programme of activities for young people ages 14 to 18. This is ordinarily run as a designated fund, however during the year, money was donated specifically for this programme.

There is Hope: to develop a digital tract ministry with the theme of Hope to reach out to as many as possible in this way about the Christian faith.

Ukraine: to support the work of a Church in Ukraine which is running a refugee centre. During last year, £2,032 was transferred from Special Appeals for the money raised during the Christmas Appeal.

Invited: Women's Ministry: to provide a programme to support women of all ages and backgrounds in following Jesus.

Evacuation Chair: money was received during the year towards the purchase and training of an evacuation chair. During the year £768 has been transferred to unrestricted funds to transfer the value of fixed assets where the restriction has lapsed.

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

20 Unrestricted funds

The unrestricted funds of the charity include general funds and designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1
Designated Funds
Building
Knightlife
Romania
Summer Camp
Building Maintenance Fund
General funds
Previous year:
At 1
Designated Funds
Building
Knightlife
Romania
Summer Camp (formerly
Hungarton Camp)
General funds		 October
2024
Incoming
resources
Resources
expended
Transfers
At 30
September
2025
£
£
£
£
£
370,619
-
(12,621)
-
357,998
2,207
8,433
(7,853)
-
2,787
547
5,557
(11,040)
5,896
960
11,085
34,912
(35,124)
(858)
10,015
-
-
(9,086)
60,000
50,914
384,458
48,902
75,724
65,038
422,674
284,401
350,536
(308,376)
(64,297)
262,264
668,859
399,438
(384,100)
741
684,938
October
2023
Incoming
resources
Resources
expended
Transfers
At 30
September
2024
£
£
£
£
£
383,788
-
(13,169)
-
370,619
3,387
4,082
(5,262)
-
2,207
6,134
5,681
(11,268)
-
547
17,526
23,093
(29,534)
-
11,085
410,835
32,856
59,233
-
384,458
241,144
364,691
(321,934)
500
284,401
651,979
397,547
(381,167)
500
668,859

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

20 Unrestricted funds

(Continued)

Building: the building fund reflects the net book value of historical improvements to the freehold premises and the cash balance to spend on improvements to the building.

Knightlife: to provide a programme of activities for young people aged 14 to 18.

Romania: to support the work of a group of Churches in Northern Romania. Transfers during the year comprise £5,896 (2024: £nil) from general funds to support this fund.

Summer Camp : to provide a programme of activities for young people aged between 9 and 18. The Camp is supported by a number of volunteers who give their time freely. This year there is a transfer of £858 to unrestricted funds for the net book value of fixed assets transferred from summer camp to general funds.

Building Maintenance Fund: monies set aside at the start of this year, being the transfer from general funds, to cover the building maintenance and repairs costs over the next 3 years.

21 Analysis of net assets between funds

Unrestricted
Restricted
funds
funds
2025
2025
£
£
Fund balances at 30 September 2025 are represented by:
Tangible assets
451,438
416
Investments
-
346,430
Current assets/(liabilities)
233,500
26,822
684,938
373,668
Unrestricted
Restricted
funds
funds
2024
2024
£
£
Fund balances at 30 September 2024 are represented by:
Tangible assets
469,778
833
Investments
-
345,430
Current assets/(liabilities)
199,081
21,012
668,859
367,275		 Total
2025
£
451,854
346,430
260,322
1,058,606
Total
2024
£
470,611
345,430
220,093
1,036,134

22 Controlling party

The Church is controlled by the Church Council.

KNIGHTON FREE CHURCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

23 Related party transactions

Transactions with related parties

During the year the Charity entered into the following transactions with related parties:

Donations received 2025 2024
£ £
Aggregate donations received from related parties without conditions attached 15,520 13,190

Other transactions

There have been no other related party transactions in the reporting period that require disclosure in the accounts apart from those detailed in note 12 to the accounts.

24 Events after the reporting date

It has been agreed between the Manse Trust and Knighton Free Church Trustees that the proceeds of the manse will be transferred to Knighton Free Church upon completion of the sale of the property and that the Manse Trust will be dissolved once this has been completed.