Company registration number: 13419905 Charity registration number: 1207670
COVENANT OF MERCY LTD TRUSTEES' REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025
Covenant Of Mercy Ltd Contents
| Page | |
|---|---|
| Reference and Administrative Details | 1 |
| Trustees' Report | 2 |
| Independent Examiner's Report | 3 |
| Statement of Financial Activities (including Income and Expenditure Account) | 4 |
| Statement of Financial Position | 5 |
| Notes to the Financial Statements | 6—9 |
| The following pages do not form part of the statutory accounts: | |
| Detailed Statement of Financial Activities (including Income and Expenditure Account) | 10 |
Covenant Of Mercy Ltd Reference and Administrative Details For The Year Ended 31 May 2025
Trustees Mr Akeem Olalekan MOSHOOD Mr Adedayo Emmanuel OWOADE Charity Number 1207670 Company Number 13419905 Registered Office C/O Mj Support & Co, 30 Churchill Place London E14 5RE Independent Examiner Dr. Mehmood Jamshed DBA MSc AFA MIPA 30 Churchill Place Canary Wharf London E14 5RE
Page 1
Covenant Of Mercy Ltd Company No. 13419905 Trustees' Report For The Year Ended 31 May 2025
The trustees present their report and the financial statements for the year ended 31 May 2025.
Objectives and Activities
Aims and Objectives
The advancement of the Christian faith according to the principles of the Christ Apostolic Church denomination.
Public Benefit
The trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities.The charity aims to advance the Christian faith for the benefit of the general public through the holding of regular prayer meetings, worship services, lectures, and community events. The acquisition of the operational event land during the period directly furthers this purpose by providing a dedicated space to host spiritual retreats, religious celebrations, and community outreach programs. These activities are open to all members of the public regardless of their background, and the trustees are satisfied that the charity’s activities provide a clear, tangible, and unrestrictive public benefit in accordance with the Charities Act.
The trustees confirm that they have complied with the requirements of Section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s guidance on public benefit.
Financial Review
Statement on Non-Charitable Pilgrimage Support
During the financial year, a group of congregation members independently undertook a religious pilgrimage managed and executed by an external, third-party travel agency. This pilgrimage does not constitute a core religious activity, a primary purpose, or a charitable program of Covenant of Mercy Ltd.As an administrative convenience to its members, the charity permitted its banking facilities to be utilized to collect booking fees totaling £438,000, which were subsequently remitted in full to the principal travel operator. The charity did not manage, control, or market this trip, carried no operational or financial liability, and derived zero profit or commission from the arrangement. In accordance with the Charities SORP (FRS 102), these administrative agency transactions are excluded from the charity’s statutory gross income and expenditure totals.
Small Company Rules
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
The trustees' report was approved by the board of trustees and signed on its behalf by:
Mr Akeem Olalekan MOSHOOD
Trustee 22/05/2026
Page 2
Covenant Of Mercy Ltd Independent Examiner's Report to the Trustees of Covenant Of Mercy Ltd For The Year Ended 31 May 2025
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 May 2025.
Responsibilities and Basis of Report
As the charity trustees of the Company (and also its directors for the purposes of company law), you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (“the 2006 Act”).
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent Examiner's Statement
Since the Company’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 Institute of Financial 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:
-
accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair view' which is not a matter considered as part of an independent examination; or
-
the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
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 accounts to be reached.
Dr. Mehmood Jamshed DBA MSc AFA MIPA
31/03/2026 30 Churchill Place Canary Wharf London E14 5RE
Page 3
Covenant Of Mercy Ltd Statement of Financial Activities (including Income and Expenditure Account) For The Year Ended 31 May 2025
| Notes INCOME AND ENDOWMENTS FROM: Donations and legacies EXPENDITURE ON: Charitable activities: 4 Religious Activities NET INCOME NET MOVEMENT IN FUNDS RECONCILIATION OF FUNDS: Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted funds £ 601,803 |
Restricted funds £ 170,484 |
2025 Total funds £ 772,287 |
2024 Unrestricted funds £ 1,206,819 |
|---|---|---|---|---|
| (762,480) | - | (762,480) | (1,151,758) | |
| (160,677) | 170,484 | 9,807 | 55,061 | |
| (160,677) 220,410 |
170,484 - |
9,807 220,410 |
55,061 165,349 |
|
| 59,733 | 170,484 | 230,217 | 220,410 |
The notes on pages 6 to 9 form part of these financial statements.
Page 4
Covenant Of Mercy Ltd Statement of Financial Position As At 31 May 2025
| Notes FIXED ASSETS Tangible Assets 7 CURRENT ASSETS Cash at bank and in hand Creditors: Amounts Falling Due Within One Year 8 NET CURRENT ASSETS (LIABILITIES) TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS OF THE CHARITY Restricted Funds Unrestricted Funds TOTAL FUNDS |
Unrestricted funds £ 14,811 |
Restricted funds £ 486,520 |
2025 Total funds £ 501,331 |
2024 Total funds £ 19,748 |
|---|---|---|---|---|
| 14,811 54,722 |
486,520 - |
501,331 54,722 |
19,748 204,662 |
|
| 54,722 (9,800) |
- (316,036) |
54,722 (325,836) |
204,662 (4,000) |
|
| 44,922 | (316,036) | (271,114) | 200,662 | |
| 59,733 | 170,484 | 230,217 | 220,410 | |
| 59,733 | 170,484 | 230,217 | 220,410 | |
| 170,484 59,733 |
- 220,410 |
|||
| 230,217 | 220,410 |
For the year ending 31 May 2025 the charitable company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
On behalf of the board
Mr Akeem Olalekan MOSHOOD
Trustee 22/05/2026
The notes on pages 6 to 9 form part of these financial statements.
Page 5
Covenant Of Mercy Ltd Notes to the Financial Statements For The Year Ended 31 May 2025
1. General Information
Covenant Of Mercy Ltd is a company limited by guarantee, incorporated in England & Wales, registered number 13419905 and registered charity number 1207670. The registered office is C/O Mj Support & Co,, 30 Churchill Place, London, E14 5RE.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)", Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.
The charitable company is a Public Benefit Entity as defined by FRS 102.
2.2. Going Concern Disclosure
The trustees have not identified any material uncertainties related to events or conditions that may cast significant doubt about the charitable company's ability to continue as a going concern.
2.3. Incoming Resources
Income Recognition (Incoming Resources)Income is recognized in the Statement of Financial Activities (SoFA) when the charity becomes legally entitled to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received, and the monetary amount can be measured reliably. Voluntary Income (Donations, Tithes, and Offerings): Offerings, tithes, and general donations are recognized in full in the SoFA when received at church services or directly via bank transfer .Corporate and Restricted Donations: Gifts from corporate entities (such as the donation from Peculiar Care Homes Limited) and funds raised for specific capital projects (such as the event land) are recognized when entitlement is established. They are allocated to the appropriate restricted or unrestricted fund columns. Income Grossing-Up: Income is recognized gross of any associated expenses. Where applicable, tax claims on Gift Aid donations are recognized at the same time as the underlying donation on an accruals basis.Agency Funds Excluded: Funds collected strictly as an agent for third-party pilgrimage operators are not recognized as incoming resources in the SoFA, as the charity exerts no control or ownership over these balances.
2.4. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Freehold Straight line over 50 years Computer Equipment 25% Reducing Balance Method
2.5. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
2.6. Pilgrimage Agency Arrangements
The charity acts strictly as an administrative agent in relation to the collection and remittance of pilgrimage funds on behalf of congregation members. This pilgrimage is an independent arrangement and does not constitute a core religious or primary charitable activity of the company.The charity collects receipts from participants and passes 100% of the funds directly to an independent, third-party principal travel operator who retains full contractual and operational liability for the travel arrangements. The charity retains no financial risk, charges no commission, and derives no profit or income from this arrangement. In accordance with the Charities SORP (FRS 102) Module 19, these cash flows are excluded entirely from the Statement of Financial Activities (SoFA).
Page 6
Covenant Of Mercy Ltd Notes to the Financial Statements (continued) For The Year Ended 31 May 2025
3. Net Income/(Expenditure)
The net income is stated after charging/(crediting):
Depreciation of tangible fixed assets - owned
| 2025 | 2024 |
|---|---|
| £ | £ |
| 4,937 | 6,583 |
4. Analysis of Expenditure
| 4. Analysis of Expenditure |
|||
|---|---|---|---|
| Religious Activities Religious Activities 5. Support Costs General administration Depreciation General administration Depreciation |
Activities undertaken directly £ 666,946 |
Support costs (see note 5) £ 95,534 |
2025 Total £ 762,480 |
| Activities undertaken directly £ 981,515 |
Support costs (see note 5) £ 170,243 |
2024 Total £ 1,151,758 |
|
| 2025 Religious Activities £ 90,597 4,937 |
|||
| 95,534 | |||
| 2024 Religious Activities £ 163,660 6,583 |
|||
| 170,243 |
6. Average Number of Employees
Average number of employees during the year was: NIL (2024: NIL)
Page 7
Covenant Of Mercy Ltd Notes to the Financial Statements (continued) For The Year Ended 31 May 2025
7. Tangible Assets
| Cost As at 1 June 2024 Additions As at 31 May 2025 Depreciation As at 1 June 2024 Provided during the period As at 31 May 2025 Net Book Value As at 31 May 2025 As at 1 June 2024 . Creditors: Amounts Falling Due Within One Year Other creditors Accruals and deferred income |
Land & Property Freehold £ - 486,520 |
Land & Property Freehold £ - 486,520 |
Computer Equipment £ 29,928 - |
Total £ 29,928 486,520 |
|---|---|---|---|---|
| 486,520 | 29,928 | 516,448 | ||
| - - |
10,180 4,937 |
10,180 4,937 |
||
| - | 15,117 | 15,117 | ||
| 486,520 | 14,811 | 501,331 | ||
| - | 19,748 | 19,748 | ||
| 2025 £ 316,036 9,800 325,836 |
2024 £ - 4,000 |
|||
| 4,000 |
8. Creditors: Amounts Falling Due Within One Year
Included within Creditors due within one year, the loans for the amount of £316,036.00 GBP representing interest-free concessionary loans advanced in good faith by members of the congregation.These loans were advanced strictly to fund the acquisition of the charity's tangible operational asset (land). The loans are entirely unsecured, interest-free, have no formal repayment schedules, and are repayable at the sole discretion of the charity when sufficient cash flows permit.
9. Transactions with Trustees
None of the trustees received any remuneration or any other benefits from an employment with the charity or a related entity during the current or previous year.
No trustee expenses have been incurred.
10. Related Party Disclosures
During the financial year, the charity entered into transactions with Peculiar Care Homes Limited, a corporate entity in which charity trustee Mr. Akeem serves as a director and shareholder.
Concessionary Loan: Peculiar Care Homes Limited advanced an interest-free, unsecured concessionary loan of £110,000 to the charity strictly to fund the acquisition of operational event land. The loan has no fixed repayment date and is repayable at the sole discretion of the charity when cash flows permit. At 31 May 2025, the balance outstanding was £110,000.
Donation: Peculiar Care Homes Limited made an unconditional charitable gift (donation) of £20,100 to the charity during the period.
Page 8
Covenant Of Mercy Ltd Notes to the Financial Statements (continued) For The Year Ended 31 May 2025
11. Company limited by guarantee
The company is limited by guarantee and has no share capital.
Every member of the company undertakes to contribute to the assets of the company, in the event of a winding up, such an amount as may be required not exceeding £1.
Page 9
Covenant Of Mercy Ltd Detailed Statement of Financial Activities (including Income and Expenditure Account) For The Year Ended 31 May 2025
| INCOME AND ENDOWMENTS FROM: Donations and legacies Donations and gifts EXPENDITURE ON: Charitable Activities: Religious Activities Staging fundraising events Other direct costs Repairs, renewals and maintenance Printing, postage and stationery Telecommunications and data costs Accountancy fees Professional fees Consultancy fees Subscriptions Bank charges Charitable donations Depreciation NET INCOME |
2025 Total funds £ 772,287 |
2024 Total funds £ 1,206,819 |
|---|---|---|
| 772,287 | 1,206,819 | |
| 772,287 (501,465) (165,481) - (79) (22,739) (5,800) (10,500) (877) (200) (17,702) (32,700) (4,937) |
1,206,819 (704,036) (277,479) (3,250) - (88,812) (4,000) (48,262) (2,026) (214) (17,096) - (6,583) |
|
| (762,480) | (1,151,758) | |
| (762,480) | (1,151,758) | |
| 9,807 | 55,061 |
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