Charity Number: 1207899
**Trustees’ Annual Report and Unaudited Financial Statements For the period ended 31 January 2025**
|**Contents**
Reference and administrative details
Trustees’ report
Independent examiner’s report
Statement of financial activities
Balance sheet
Notes to the Financial Statements|**Page**|
|---|---|
||
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4
8
9
10
11|
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## **NewGround Foundation Reference and administrative details**
## **Trustees during the period ended 31 January 2025**
Kate Griffiths (appointed 17 April 2024) Sanjay Mahtani (appointed 17 April 2024) Graham Lane (appointed 17 April 2024) **Charity Registered Number** 1207899 **Registered office** Workshop R/O Simon House Windmill Road, Headington Oxford OX3 7BU **Bankers** The Co-operative Bank PO Box 250 Skelmersdale WN8 6WT Website: www.co-operativebank.co.uk **Independent Finance Support:** FLAS Financial Services Batsirai Mhuka 34 Proctor Way Faringdon SN7 7UY Email: batsi@flasinc.co.uk Website: www.flasinc.co.uk **Independent Examiner** Thomas Bradley ACMA
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## **NewGround Foundation Trustees’ Annual Report For the period ended 31 January 2025**
## **Objectives and activities**
The objects for which the charity was established are:
- _“For the public benefit, to promote the resettlement and rehabilitation of offenders and ex-offenders by:_
- _A. Empowering them to gain employment and independence through the provision of education, training and necessary support designed to enable them to generate a sustainable income and be self-sufficient._
- _B. Developing their individual capabilities, competencies, skills and understanding of employable value._
The purposes of the charity are the prevention and relief of poverty and the provision of education and training. The NewGround Foundation exists to provide training and employment opportunities for prisoners, prison-leavers, and individuals subject to statutory supervision in the community with the aim of providing the opportunity to never reoffend, which in turn helps to prevent poverty and enable financial independence.
To achieve this, the NewGround Foundation goes into prisons to deliver industry standard speciality coffee and barista training, and helps graduates from our course into employment in the coffee industry upon release.
Our training this past year has all been in HMP Spring Hill, a local category D open prison. In HMP Spring Hill, we run a monthly ‘Introduction to Coffee’ session on their customer services course, from which we select the most interested and engaged participants to take part in our NewGround Academy. The NewGround Academy is an intensive, 3-day training course, which equips participants with in-depth knowledge of coffee from farm to cup and the key skills in making delicious coffees of different kinds to enable them to transfer these skills into cafe employment. Our first iteration took place this year, and we plan to run it quarterly for groups of half a dozen new participants—plus returning graduates who wish to do a refresher course—so training 24 new individuals each year in each setting we work in.
## **Achievements and Performance**
Our key achievements and outcomes for the past year include:
- Training 72 prisoners in introductory barista skills through our monthly training sessions at HMP Spring Hill.
- Piloting our NewGround Academy for a group of five prisoners. 100% graduated from the course, and showed great interest and application throughout.
- Seeing 60% of our graduates (three out of five) enter into paid employment in the coffee industry; the only one released so far secured a full-time barista position in his hometown, and two have since joined our sister trading company on ROTL work placements.
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Beyond these quantifiable achievements, the year has been a great success in laying the groundwork and setting up the charity for the long term. In March 2024 we hired an Impact Coordinator as our first paid employee. Having a dedicated team member to oversee the charity’s day-to-day operations has enabled us to make strategic plans for the future, to swiftly get established as a charity and meeting the requirements of the Charity Commission, and to build vital networks and partnerships with key personnel in both HMPPS, the third sector and companies working with prison-leavers.
The charity’s main activities are described in the sections above. The board of trustees is satisfied with the performance of the charity during the year and the public benefit that has arisen from our activities. In planning the activities, the trustees have had regard to the Charity Commission’s guidance on public benefit.
We wish to extend a particular thanks to our supporters in our first year as a CIO. In this competitive fundraising environment it takes faith to invest in a newly registered charity, and we are immensely grateful for their backing, both financially and in terms of believing in the work we are undertaking. This support has been invaluable in laying foundations this year for significant impact in the years to come.
## **Financial Review**
The trustees are satisfied with our financial position and projections for the future after our first financial year end as a registered charity. The charity planned for a shortfall this year as it employed its first member of staff, funds for which were raised through the sale of a proportion of its shares in New Ground Group Ltd ahead of the start of the financial year, so the shortfall shown in the accounts is as expected. A detailed analysis of income, expenditure, and fund balances is provided in the financial statements and notes to the accounts.
The trustees are pleased with the income this year, primarily from trusts and foundations but diversified by individual and corporate donation. We are confident that a greater degree of trust and foundation income will be possible in the future once the charity has a year of activity and published accounts under its belt. A further £20,000 in trust and foundation grants has been raised in the two months following the financial year end, supporting this view.
## **Reserves Policy**
The NewGround Foundation sees its reserves as an allocation of unrestricted funds that can be spent on any purpose of the charity. These reserves are to be maintained at a level equivalent to three months’ core expenditure for the charity. This level of reserves are to safeguard the charity's future, ensuring the continuation of core operations even if funding experiences a shortfall, and providing time to consider ways of securing additional funds. Furthermore, in the remote possibility of the charity ceasing operations, these reserves would facilitate an orderly shutdown, ensuring all commitments are honoured. As of 31 January 2025, unrestricted reserves amounted to £7,900.
## **Plans for Future Periods**
Following conversations with key HMPPS stakeholders, in the following year the NewGround Foundation aims to expand its training to two-three new HMPPS settings. Two of these would be other prisons, and one a probation unit. Each will offer a different environment to the open Category D setting of HMP Spring Hill, enabling us to gain experience in supporting people through different
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stages of the criminal justice system, and countering the inevitable challenges we will face in these settings. As our training increases, we will explore recruiting a second member of staff to lead our training in these settings and develop the curriculum, rather than relying solely on bringing in tutors from New Ground Group on a more ad hoc basis.
Beyond our training, we will also be placing an increased focus on fundraising to enable us to continue to expand our operations and achieve a greater impact. While trusts & foundations will likely be the largest source of funding, we are keen to diversify our income streams with statutory funding, and further connections with local businesses and individuals keen to support our cause. We will be strengthening our digital presence and online voice in this area to support this, launching an Instagram account for the charity and utilising @newgroundcoffee’s strong online following to gain immediate traction.
## **Structure, Governance and Management**
## **Legal Form**
The NewGround Foundation is a Charitable Incorporated Organisation (CIO) registered in England and Wales with the Charity Commission under charity number 1207899. The CIO was incorporated on 17th April 2024, and this is its first full year of operation. Its principal office is Simon House, Workshop R/O, 2 Windmill Road, Oxford, OX3 7BU.
The charity is controlled by its governing document, a Constitution dated 17th April 2024.
## **Organisational Structure**
The charity is governed by a board of trustees who are responsible for overall strategy, financial oversight, and risk management. Day-to-day activities are carried out by the charity’s employees and CEO, under the strategic oversight of the trustees.
## **Trustee Appointment**
Trustees are appointed in line with the procedures set out in the charity’s constitution. Prospective trustees are considered for their alignment with the charity’s vision, and their skills, knowledge and experience needed for the effective administration of the CIO. All trustees undergo an induction process covering their legal duties, the charity’s operations, and governance policies.
## **New Ground Group Ltd**
The NewGround Foundation CIO holds a significant minority shareholding in NewGround Group Ltd, owning 31% of the company’s total share capital as at year end. The NewGround Foundation has a formal and values-driven relationship with NewGround Group Ltd.
While the governance and leadership of the two organisations remain independent, the entities are closely aligned in mission and values, and maintain a collaborative relationship through shared storytelling, brand identity, and the joint use of digital platforms such as the website. The shareholding is structured to provide the Foundation with long-term financial security, with a view to future dividend payouts that can be reinvested into its charitable programmes.
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There are no shared employees or operational functions, and each entity maintains separate boards, finances, and legal responsibilities. The ownership structure ensures ongoing alignment while allowing NewGround Group Ltd to operate commercially with impact at its core.
Approved by the board of trustees on **11 September 2025** and signed on their behalf by:
**Name: Sanjay Mahtani**
## **Role: Trustee**
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## **NewGround Foundation**
## **Independent Examiner’s Report**
## **For the period ended 31 January 2025**
I report to the trustees on my examination of the financial statements of **NewGround Foundation** for the period ended **31 January 2025** , which comprise the Statement of Financial Activities, the Balance Sheet, and the related notes.
## **Responsibilities and basis of report**
As the charity’s trustees, you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 ("the Act").
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner’s statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or
2. the financial statements do not accord with those records; or
3. the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a "true and fair" view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
## **Examiner’s details**
## **Name: Thomas Bradley ACMA**
## **Relevant professional qualification or body: CIMA**
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## **NewGround Foundation**
|**Statement of Financial Activities**
**For the period ended 31 January 2025**
Note
Unrestricted
fund
Restricted
fund
£
£
**Income and Endowments from:**
Donations and legacies
3
7,134
-
**Total income and endowments**
**7,134**
**Expenditure on:**
Charitable activities
4
(24,593)
-
**Total expenditure**
**(24,593)**
**Net income/(expenditure)**
**(17,459)**
Transfer between funds
-
-
**Net movement in funds**
**(17,459)**
**-**
**Reconciliation of funds**
Total funds brought forward
-
-
Net movement in funds
11
(17,459)
-
**Total funds carried forward**
**(17,459)**
-|Total funds
2025
£
7,134|
|---|---|
||**7,134**
(24,593)|
||**(24,593)**|
|||
||**(17,459)**
-|
||**(17,459)**
-
(17,459)|
||**(17,459)**|
The Statement of financial activities includes all gains and losses recognised in the period. The notes on pages 11-14 form part of these financial statements.
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## **NewGround Foundation**
## **Balance Sheet As at 31 January 2025**
|**Note**
**Fixed Assets**
Investments
7
**Current Assets**
Debtors
8
Cash at Bank and in Hand
9
**Creditors: Amounts Falling Due within one Year**
10
**Net Current Assets (Liabilities)**
**Total assets less current liabilities**
**Total Net Assets**
**Charity Funds**
Restricted funds
Unrestricted funds
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**Total Funds of the Charity**|**2025**
**£**
**126,559**|
|---|---|
||313
25,342|
||**25,655**
**(1,093)**|
||**24,562**|
||**151,121**|
|||
||**151,121**|
||-
151,121|
|||
||**151,121**|
The company was entitled to exemption from audit under s477 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 directors acknowledge their responsibilities for complying with the requirements of the Companies Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to small companies subject to the small companies regime and in accordance with FRS102 SORP.
**Approved by the trustees on 11 September 2025 and signed on their behalf by:**
## **Name: Sanjay Mahtani**
## **Role: Trustee**
**Signature:** ��� ����� ���
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## **NewGround Foundation**
## **Notes to the Financial Statements**
## **For the period ended 31 January 2025**
## **1. General Information**
- NewGround Foundation is a Charitable Incorporated Organisation (CIO), registered in England and Wales with the Charity Commission under charity number **1207899** .
NewGround Foundation succeeded the activities of NewGround CIC, whose operations were transferred to the CIO on incorporation. The charity was established with the aim of providing training and employment opportunities for prisoners and prison-leavers, with the aim of providing the opportunity to never reoffend.
These financial statements cover the period from **17 April 2024 to 31 January 2025** , which is the first financial year of the charity.
## **2. Accounting Policies**
The financial statements have been prepared in accordance with:
- The Charities Statement of Recommended Practice (SORP) FRS 102 applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102),
- The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102),
- The Charities Act 2011.
NewGround Foundation meets the definition of a public benefit entity under FRS 102. The financial statements are prepared under the historical cost convention and in sterling (£), which is the functional currency of the charity.
## **a) Income**
Income is recognised in the Statement of Financial Activities (SoFA) when the charity is entitled to the income, receipt is probable, and the amount can be measured reliably. This includes donations, grants, and other forms of voluntary income.
## **b) Expenditure**
Expenditure is recognised on an accruals basis when a legal or constructive obligation exists, it is probable that settlement will be required, and the amount can be measured reliably.
Charitable expenditure comprises costs incurred directly in the delivery of the charity’s activities and support costs. Governance costs include those associated with the strategic management of the charity and compliance with statutory requirements.
## **c) Fund Accounting**
Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Restricted funds are donations or grants received where the donor has specified a particular purpose for the income to be used.
## **d) Debtors and Creditors**
Debtors are recognised at settlement amount due. Creditors are recognised where the charity has a present obligation resulting from a past event that will probably require settlement, and the amount can be reliably estimated.
## **e) Cash Flow Statement**
The charity has taken advantage of the exemption available under FRS 102 from preparing a Statement of Cash Flows, as it qualifies as a small charity.
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## **f) Fixed asset investments**
Investments are measured at fair value. Changes in fair value are recognised in the statement of financial activities. Where fair value cannot be reliably measured, cost less impairment is used
## **g) Going concern**
The financial statements are prepared on a going concern basis. The trustees have assessed the charity’s financial position and consider it able to continue its activities for the foreseeable future.
## **3. Donations and legacies**
|Doris Field Charitable Trust
The Stanton Ballard Charitable Trust
The SpeedoMick Foundation
Magdalen College Trust CIO
Other individual donations and gifts
**Total Donations and legacies**|**Unrestricted**
**£**
1,000
1,000
3,000
500
1,634
**7,134**|**Restricted**
**£**
-
-
-
-
-
**-**|**Total 2025**
**£**
1,000
1,000
3,000
500
1,634|
|---|---|---|---|
||||**7,134**|
## **4. Charitable expenditure**
|Employee costs
Subscriptions
Other expenditure
**Total Donations and legacies**|**Unrestricted**
**£**
22,611
937
1,045
**24,593**|**Restricted**
**£**
-
-
-
**-**|**Total 2025**
**£**
22,611
937
1,045|
|---|---|---|---|
||||**24,593**|
## **5. Employee and trustee remuneration**
The charity had one employee during the year. The total employment costs, including salary, employer’s National Insurance and pension contributions, are shown in note 4.
None of the Trustees received any emoluments or expenses for the provision of trustee services in the reporting financial year.
No employees received benefits of over £60,000 during the period.
## **6. Related Party Transactions**
The charity holds a 31.12% shareholding in NewGround Group Ltd, a related party by virtue of this equity interest. The shares were transferred from NewGround CIC on 17 April 2024 as part of the transition of operations to the CIO. The investment was initially valued at £120,248 based on the net asset value of NewGround Group Ltd as at 31 July 2023 and revalued to £128,229 as at 31 July 2024.
At 31 January 2025, an amount of **£313** was receivable from NewGround Group Ltd, relating to expenses paid by the CIO on its behalf. This is included within debtors at year end.
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Other than these items, there were no material related party transactions during the year.
## **7. Investments**
|**Cost or valuation at 1 February 2024**
Additions during the year
Disposals during the year
Revaluations during the year
**Cost or valuation at 31 January 2025**|**Unlisted**
**Investments**
**£**
-
120,268
-
6,291|
|---|---|
||**126,559**|
On 17 April 2024, the charity acquired a 31.12% equity holding in NewGround Group Ltd through a transfer of assets from its predecessor entity, NewGround CIC.
The investment was initially recognised at £120268, based on the net asset value of NewGround Group Ltd as at 31 July 2023. A revaluation was carried out at 31 July 2024 using updated financial information, which increased the value to £126,559.
The investment is classified as a fixed asset financial instrument under FRS 102 and is held at fair value. No impairment has been recognised at year end.
**8. Debtors**
|Amounts receivable from related parties
**Total Debtors**
**9. Cash at Bank and in Hand**
Cash at Bank and in hand
**Total Cash at Bank and in hand**
**10. Creditors**
Other creditors||**2025**
**£**
313|
|---|---|---|
|||**313**|
|||**2025**
**£**
25,342|
|||**25,342**|
|||**2025**
**£**
1,093|
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|**Total Creditors**|||||**1,093**|
|---|---|---|---|---|---|
|**11. Statement of Funds**||||||
||**Balance at**|**Income**|**Expenditure**|**Transfer from**|**Balance at**|
||**17 Apr 2024**|||**CIC**|**31 Jan 2025**|
|Unrestricted Fund|**-**|7,134|(24,593)|168,580|**151,121**|
The charity operates a single unrestricted fund. During the period, income totalled £7,134 and expenditure was £24,593. Assets totalling £168,580 were transferred from NewGround CIC, comprising a cash balance and a fixed asset investment. Further details are provided in Notes 3, 4, 6 and 7.
The closing balance of unrestricted funds as at 31 January 2025 was £151,121.
## 12. **Volunteers**
The charity benefits from the involvement and unpaid work of volunteers. During the year, 4 volunteers contributed a total of 35 hours. In accordance with the Charities SORP, this contribution has not been included in the accounts as it cannot be reliably quantified in monetary terms.
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