2025-03-31-accounts

The Papworth Trust

Report and Accounts 31 March 2025

The Papworth Trust Report and Accounts for the year ended 31 March 2025

Our vision, mission and values

Our vision: A world where disabled people are seen for who they are.

Our mission: For disabled people to have equality, choice and independence.

Our values:

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Contents

Chair and CEO introduction ............................................................................... 4 Trustees’ Report .................................................................................................... 5 Strategic Report ................................................................................................. 25 Statement of the Board of Trustees’ responsibilities in respect of the Board of Trustees’ Annual Report and the financial statements ............................. 34 Independent Auditor’s Report to the Members of The Papworth Trust ....... 35 Statement of Comprehensive Income ............................................................ 40 Notes to the financial statements .................................................................... 43 Honorary personnel, Trustees and senior managers ...................................... 70 Principal Advisers and Papworth Trust information ........................................ 71

Registration Number Trust status: A registered charity 211234 A company limited by guarantee 148906 A private registered provider LH1648

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Chair and CEO introduction

We remain as true to our core today as we did when our founder, Sir Pendrill Varrier Jones had his vision for helping patients with Tuberculosis back in 1917. Our vision is for disabled people to be seen for who they are, and every aspect of our work is to achieve our mission of supporting disabled people to have equality, choice and independence.

During the past year, we have supported more people into the workplace through delivering new employment contracts, we have grown our Day Opportunities services and continued to deliver our Care and Housing services, amidst an incredibly challenging background of reduced funding and increased costs. We are pleased to have developed strategies for our four key operational areas, each of which drive quality improvements and growth, whilst keeping customers at the heart of everything we do.

Through listening to our colleagues, we have worked hard to use the resources we have in the most effective way to deliver pay and benefits that reflect the outstanding work they do. Through this, we have achieved an 86% staff satisfaction rate, of which we are incredibly proud.

We are transforming our services with the use of technology, appreciating we have a long way to go. We have introduced upgrades to existing software that have improved capability, implemented new software to revolutionise how we work for our rostering and timesheets along with increasing accessibility for our customers through applications and digital solutions.

We refined our values and introduced the new ‘ambitious and brave’ which is a clear reflection of the world we are operating in now. We want our customers to achieve their aims, their goals and are continuously asking, and listening to feedback to see where we can learn and improve. We went one step further to engage with a partner to help us develop our approach to Co-Production and are really pleased to have started on that journey.

2024 -25 has been an incredibly busy year for Papworth Trust, and a very productive year. We are extremely grateful for the dedication and hard work of our commissioners, funders, colleagues and volunteers, who are amazing.

Brian Stewart OBE, Chair, and Sarah Miller, Chief Executive

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Trustees’ Report

The Trustees present their Report and audited Financial Statements for the year ended 31 March 2025.

Overview of activities and achievements in 2024/25

Set in 2022, our three-year Strategic Objectives are Customer Focus, Sustainability, Grow our Impact and External Influence.

Customer focus

Last year we said…

• We will communicate to our customers in a way that meets their needs and preferences.

• We will develop an approach to Co-production.

• We will increase care customers’ independence and quality of life through the use of technology.

Our progress made…

• We are confident that we have captured our customers’ communication needs and preferences within our respective services at a local level. Our expert partners Healthwatch Suffolk delivered a training session for 20 managers. Having engaged with 16 customers, we are now piloting our first project.

• Our Tenant Scrutiny Panel started their second deep dive review looking at communication within the capital works programme, meeting with members of the housing team and our contractor, the Bell Group, to understand more about how the programme works.

• We involved tenants to help form our housing strategy – we offered sessions with tenants and other ways to feed their views into the strategy.

• Work is underway to launch two new tech offers to customers to communicate and engage with the housing service - an online portal for customers to access their housing account online and a text messaging service rolling out early 2025/26.

• Employment focus group – 3 customers indicated they wished to take part in a customer forum, however no attendees showed when the meeting was set. As we’ve tried this multiple of times recently, we will now review this approach.

Sustainability

Last year we said …

• We will develop an information management strategy.

• Through investment and planning we will ensure our workforce has the knowledge, skills and resources to deliver great services.

• We will develop a net zero action plan.

• We will develop housing and commercial property strategies.

• Our progress made…

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

• Implementation of Care Rostering system and our Pyramid upgrade (housing system) went well.

• We have commissioned new software, Notify, to improve our Accidents, Incidents and Near miss logs, which can potentially be used to improve our auditing processes.

• We have met our target to bring organisation-wide staff turnover to 18%. Through our staff morale and wellbeing survey, 86% said Papworth Trust is a great place to work (up from 74% the previous year).

• We launched a new Careers Portal advertising jobs and volunteering vacancies, showcasing staff case studies and information on our employer offer.

• We’ve implemented Safecall, an external whistleblowing service.

• We moved our payroll function to Staffology with payslips now emailed direct to staff.

• Our housing team completed customer service training at the beginning of the year, with positive feedback and staff putting into practise what they have learned.

• A managers’ toolkit (for current and aspiring managers) is now in place; a first cohort of 15 line managers took part in the coaching culture training programme.

• We have created our learning and development programme, which includes a target of supporting at least 5% of our staff to undertake a formal qualification beyond any mandatory training required.

• We were successful in securing 43% grant funding of our warm homes funding bid, which equates to £1.28m and will help circa 114 homes achieve at lease EPC category C over the next three years as part of our Net Zero action plan.

• We have streamlined our volunteer application process and are extremely grateful to our 47 dedicated volunteers who have donated just under 5,000 hours over the last year. Eight Corporate Volunteering organisations worked with us to provide 107 people to support us over 12 events.

• We have published our housing strategy and a commercial property strategy is in progress.

Grow our impact

Last year we said …

• We will deliver our services to more disabled people.

Our progress made…

• We won a new contract, WorkWell, an 18-month employment support programme in Peterborough which finishes in March 2026.

• We are having open conversations with designated authorities and prime providers as they look to set up their Connect to Work contracts in 2025. We’ve also completed eight Expression of Interests with Prime Providers.

• We are expanding our South Cambridgeshire Day Opportunities service to include people with Profound and Multiple Learning Difficulties (PMLD).

• We’ve secured our move to Unity Campus in Sawston for our South Cambridgeshire Day Opportunities service which will create capacity to grow.

• We are purchasing a property which will provide growth opportunity for our Lowestoft Care service.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

• Working in partnership Independent Living Suppliers (ILS), we launched an Assistive Technology pilot to support our developing an organisational approach to customers maximising their use of Assistive Technology.

• Our Social Value statement has now been drafted.

• A working group for our Value for Money strategy has been formed to ensure we comply with the spirit of the Regulator of Social Housing standards.

• We developed a fundraising action plan which showcases the areas we wish to focus on moving forwards.

External influence

Last year we said …….

• We will increase the number of employers we work with to raise disability awareness through promoting Disability Confident.

• We will develop and implement our brand awareness strategy.

Our progress made…

• We prepared for our Disability Confident Leader status renewal which we achieved in May 2025.

• Of the 71% of staff who responded to our survey, 35% consider themselves to have a disability or long-term health condition.

• With a part time resource, we worked with 76 organisations to become Disability Confident. This will become Full Time in 2025/26 and will focus on Level 2 due to being able to maximise Disability Confident influence.

• Disability Confident featured as a two-page advertorial in Jobs and Careers magazine.

• We have responded to five Government consultations including the Low Pay Commission’s review into the National Minimum Wage, where the Trust’s evidence was quoted twice within their final report to Government.

• Our Director of People and Culture delivered a webinar to the National Housing Federation’s EDI network of over 100 attendees on our work as a Disability Confident Leader supporting disability, mental health and wellbeing in the workplace.

• BBC Look East filmed our Chief Executive and 3 Day Opportunities customers as part of the campaign to ask the Chancellor to rethink the increase on National Insurance Contributions for charities.

• We hosted a visit from the Department for Work and Pensions officials to talk about the progress being made on our WorkWell employment support programme across Cambridgeshire and Peterborough.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Reserves Policy

Restricted Funds

The Trust from time to time receives grants or donations that might be specifically designated by the donor for a particular purpose, either in response to an appeal that we have made, or more generally by the donor’s relationship with the Trust.

Where the Trust chooses to accept such grants or donations, it will do so on the full understanding of the terms and conditions that pertain to the grant or donation and will put steps in place to ensure that these donations are only spent as prescribed in the terms of the grant/donation. The Trust will ensure that any further obligations placed upon the Trust by the acceptance of such grants or donations are strictly adhered to. Such grants and donations are separately tracked and monitored and do not form part of the general reserves at the disposal of the Trust.

The value of restricted funds held at 31 March 2025 was £2.711m, (£2.835m at 31 March 2024).

Endowment Funds

The Trust holds a small number of funds, described as endowment funds, established over time to support particular groups of beneficiaries. We seek to utilise these funds to support these beneficiaries to the extent that we are able, in line with our objects.

The value of the endowment funds held at 31 March 2025 was £437,000, (£435,000 at 31 March 2024).

Designated Funds

The Trustees also use their powers to designate certain funds for specific purposes, if required, to ensure that known future commitments can be met, or to recognise that certain assets cannot be freely deployed to meet particular objectives of the Trust without significant disruption to the Trust’s business.

To this end the Trustees have resolved to exclude from general reserves the value of fixed assets held, net of the long-term liabilities held against these, representing assets held for the purpose of delivering our mission. These assets do not represent ‘free’ reserves as they are required to be maintained in order that we can continue to deliver services to our customers in pursuance of our aims. Therefore, the Trustees have designated reserves that reflect the carrying value of these assets in the Statement of Financial Position (Balance Sheet).

The Trustees have also elected to include in designated funds the pension liability payments still required under the deficit repayment plan produced from the most recent full actuarial assessment, less the amounts already provided for this liability on the balance sheet, following the pension trustees’ current assessments.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

In addition, the Trustees recognise the need to maintain its properties and work towards the government’s net-zero target by 2050, which will require significant financing, and have therefore started to provide funds to undertake initial works. The Trustees have also recognised the need to invest in services to develop our offering to meet evolving requirements and intend to invest additionally over the course of the business plan to achieve these objectives.

The value of designated funds held at 31 March 2025 was £17.556m (£17.596m at 31 March 2024).

General Reserves

General reserves represent the ‘free’ reserves that the Trustees have at their disposal to meet the objectives of the Trust. These reserves are held to ensure the financial resilience and sustainability of the Trust, helping to manage risk and volatility, to insulate the organisation against the impact of future financial shocks and to enable the Trust to react to unplanned growth opportunities should they arise.

The Trust has sought to evaluate the material risks and uncertainties facing the business, and the quantum of financial provision that may need to be reserved to manage these risks, should they occur. We have considered activity as identified in our three-year business plan to represent an appropriate time horizon for the assessment of the level of reserves required.

It is also recognised that there is a level of general volatility in operations, and any plans to materially change provision, to exit any activity, or to manage the transition of programmes to differing funding mechanisms, inevitably takes time and involves cost. It is therefore prudent for the Trust to preserve funds for such eventualities.

The Trustees have evaluated the principal financial risks facing the charity, along with an assessment of the range of potential liabilities that may arise, should these risks crystallise, and have summarised these in the following table:

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

General Reserves assessment

Category	Description of Risk Estimated Financial Exposure of risk	Description of Risk Estimated Financial Exposure of risk
1. Potential Future Obligations SHPS liability. There is a potential £233m claim against The Pensions Trust (TPT), the fund managers for SHPS, relating to the application of inflation rates to benefits historically. This is not reflected in the TPT valuation, and is being disputed by TPT, however it would be prudent to reserve for our share of risk to our own funds. £600k Capital Investments – own funds required to be reserved to complete projects. None at present. Funding plans in place to meet requirements. This could change once requirements to meet net zero are known SHPS liability increases following actuarial review at last triennial valuation, as of Sept 2023. £500k to £1,500k
2. Operational challenges Care service delivery. Challenging operating model, risk to achieving financial improvement plan and sustainable operating model £100k to £200k Reduction in voluntary funding. Reserve needed to manage any transition to reduced funding environment £500k Inflation levels significantly exceed those budgeted, adversely impacting the cost base of the organisation £100k to £200k Stress testing and sensitivity of budget projections not captured above £250k
3. Transitional arrangements Funds required to manage transitions between contracts £100 - £250k
4. Funding planned service shortfalls Identification of reserves to fund future shortfalls None required that are not already included in the budget
5. Asset valuation risk Impairment risk of fixed assets. Realisable value may be less than in-use value for specialist assets used for service delivery £1,000k Repayment of social housing grants, should these not be recycled effectively £150k Downgrade in valuation of Investment portfolio £1,000k to £2,000k
	Downgrade in valuation of Investment portfolio	£1,000k to £2,000k

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

From this assessment the Trustees have concluded that they need to hold general reserves for risks arising from operating activities in the target range of £4.3m to £6.6m (31 March 2024: £4.2m to £6.1m). Current general reserves stand at £7.705m, as of 31 March 2025, £1.105m above the top end of the minimum range required.

Given the desire to maintain a modest buffer to allow the Trust to react to unplanned growth opportunities and a generally higher level of cost base and cost increases being experienced, and factors such as domestic political uncertainty and geo-political tensions mean the Trustees do not feel that any steps are required to reduce this level of reserves at this point. In fact, there is a case to increase fundraising activities.

The level of general reserves is monitored carefully against our long-term plans to assess whether any excess is permanent or temporary in nature, and future programme delivery will be structured accordingly should the Trustees decide to utilise some reserves in furtherance of our objects.

Investment Policy

The Trust seeks to produce the best risk-adjusted financial returns from its financial investments. The investment objective is to maintain the real value of the assets over the long term, whilst also producing an income stream that can support the regular operations of the Trust. Investments are managed with full discretion by the Trust’s investment advisers in accordance with the Statement of Investment Policy agreed with the Board. The Trustees of the Trust set the objectives, restrictions, investment mandate and any exclusions and, via the Finance, Audit and Risk Committee, monitors the performance of the investment advisers periodically. Part of this strategy seeks to diversify adequately to minimise concentration risk and to manage currencies appropriately.

Investment scope

Subject to the Environmental, Social and Governance (ESG) limitations that are set, the Trust delegates authority to the appointed fund managers to invest its funds appropriately to meet the targeted financial return and liquidity requirements agreed from time to time.

Attitude to Risk

The Trust seeks primarily to ensure that the real value of its investment funds is at least maintained, to support its reserves policy, whilst also providing a valuable unrestricted income stream to support operations. A key risk to the long-term sustainability of these funds is inflation, and the assets should be invested to mitigate this risk over the long term. The Trustees understand that this is likely to mean that the financial investments will be concentrated in real assets and that the capital value will fluctuate. The Trustees are able to tolerate short-term volatility of the capital value of the Trust’s financial investment portfolio, as long as the Trust is able to preserve the underlying value in the long term. The investment portfolio is positioned to act as a fall-back source of liquidity in the unlikely event that the Trust experiences a period of operational cashflow stress.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Structure, governance and management

The Papworth Trust is governed by its Trustees, who are also the members of the Trust. Trustees can serve up to three terms of office of up to three years each; the arrangements for the election or appointment of Trustees are detailed in the Articles of Association.

The Trustees, who are also Directors of the company under company law, meet quarterly as the Board of Directors to review the management of the organisation. Trustees are all assigned to Committees. The Committees take a more detailed view of the areas of operations and governance delegated to them at their quarterly meetings. Committees meet with Executive and Leadership Team member and managers of respective services and departments who provide reports and information which are subsequently discussed at Board meetings. Day-to-day management is delegated to the Chief Executive and Executive Team.

The induction process for Trustees is structured to ensure they receive a comprehensive introduction to their role and to the organisation. The induction process includes visiting our services and meeting customers and colleagues, understanding the functions of the Trust through 1:1 meetings with senior managers and reading core relevant information, guidance and legislation, supported via a structured induction plan delivered by an executive Team ‘buddy’.

Trustees undertake mandatory training, whilst also having the opportunity to participate in a range of good practice training relating to governance, Charity Commission requirements and operational delivery. Trustees are supported by access to a dedicated section of our intranet site and board management software, keeping them updated on matters arising within the Trust, as well as within the sector and our operating landscape more widely. The Trust follows the Charity Governance Code and monitors ongoing compliance with this code.

All Trustees, including the Chair, undertake an appraisal review, incorporating feedback from primary points of contact, in order to monitor Board effectiveness.

Trustees do not receive a salary but may claim expenses for actual reasonable costs incurred in attending meetings or otherwise fulfilling their duties. The extent of reimbursement of expenses is dealt with under note 7 below.

Conflicts of Interest

A register of Trustee and Executive Team interests is maintained, to assess and manage any potential conflicts. The Conflicts of Interest policy and process aligns with current best practice.

Trustees and Executive Team are formally asked on an annual basis to review the information held on each respective register and confirm that it is correct and that they remain eligible to serve as a Trustee of The Papworth Trust, with reference to disclosures required under company law and charity law, as well as best practice. In addition, at

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

the beginning of each Board and Committee meeting or prior to the involvement in any project they are also reminded of the register and asked if there are any changes to be recorded. Any conflict raised is then managed in accordance with the policy.

Trustees’ Liabilities

The Trust indemnifies the Trustees of the Trust against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third-party indemnity provision was in force throughout the year.

Committees

Committees take a more detailed interest in specific areas of the Trust’s activities and monitor performance against key performance indicators. The terms of reference of individual committees are reviewed annually to ensure continued effectiveness and compliance with good governance practice, with an external board effectiveness review undertaken every three years and a light touch internal review undertaken in intervening years. Following an external Board Effectiveness Review conducted by Deloitte, the Governance structure changed with the following committee now in operation, with key responsibilities identified, is as follows:

Finance, Audit and Risk Committee

The Finance, Audit and Risk Committee is responsible for reviewing the financial performance of the Trust and reporting this to the Board, as well as overseeing the organisation’s Risk Management Framework. The Committee monitors in-year financial performance and reviews the Trust’s annual accounts, recommending them to the Board for approval. The Committee receives audit reports from internal and external auditors and reviews the Trust’s framework for financial controls, including consideration of the annual statement of internal controls and its compliance with current guidance. The Committee holds responsibility for the oversight of treasury and investment management, the financial appraisal of new projects and prevention and detection of fraud.

The Committee also takes primary responsibility for ensuring that the Trust has effective risk management mechanisms in place, and periodically considers the Trust’s risk register, ensuring that mitigations are effective and that any residual risk is aligned with the Trust’s tolerance and appetite for risk.

Housing and Property Committee

This is a newly formed Committee, focusing on the Trust’s social housing and commercial properties, overseeing the review of performance of the Trust’s properties, in line with service standards and statutory, regulatory and contractual compliance, along with tenant satisfaction, accidents and incidents and safeguarding within our social housing.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

The Committee reviews the Trust’s net zero agenda and promotes the Trust’s approach to our housing development strategy. It has oversight of the Housing Action Plan, monitoring all aspects of housing management, maintenance and tenant engagement and satisfaction activities.

People and Culture Committee

The Committee has responsibility for recommending the overall annual pay award and general reward policy for staff and determining the remuneration of the Chief Executive and Executive Team. It also has an oversight of the salaries of any other staff in receipt of salaries over the Statement of Recommended Practice (the SORP) reporting threshold (currently £60,000 pa).

The People and Culture Committee takes the responsibility to monitor the Trust’s performance against our People and Culture Plan and our Workforce Development Plan. The Committee champions our work on Equality, Diversity, Inclusion and Belonging along with reviewing our progress on our volunteering strategy and work to ensure that we as a Trust are adhering to and exceeding disability confident in all aspects of our work whilst working with employers to support them to become disability confident through our validation status.

Quality and Engagement Committee

This newly formed Committee reviews the performance of the Trust’s quality and engagement across our Work, Care and Day Opportunities services. This Committee oversees the review of performance of the Trust’s operations, in line with service standards and statutory, regulatory and contractual compliance.

Customer engagement and satisfaction, incidents and safeguarding are an area of focus for this committee along with Co-Production and ensuring our customer voice shapes our services.

Health and Safety

The Board recognises its responsibilities on all matters relating to health, safety and security, for our staff, customers and volunteers. We maintain scrutiny through best practice groups, as well as formal reporting mechanisms to management and to the Board of any health and safety issues or concerns. The profile of Health and Safety across the wider organisation continues to rise with a cross-working advisory group who hold responsibility for the delivery of a 3-year action plan to improve processes and embed a health and safety mindset more deeply into our culture. We will continue the monitoring of safeguarding via our Housing and Property Committee for our tenants and Quality and Engagement Committee for our customers in Work, Care and Day Opportunity services and utilise the Safeguarding Best Practice Group to capture learning and feedback from our own experience, and the experience of others, to improve process and practice.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Internal control assurance

The Board of Trustees carries out an annual review of the effectiveness of controls, through a report from the Finance, Audit and Risk Committee which has delegated authority for the review. As part of the annual review, the Committee:

• Reviews the process for identifying, evaluating and managing significant risks, as detailed in this report above, and as contained in the Risk Management Framework

• Reviews reports and recommendations received by management, as appropriate

• Reviews any incidences of significant failings in internal control and considers whether the remedial action and management recommendations have been effective.

• Considers reports from Internal audit, and considers the proposed scope of activities planned for the internal audit programme for the coming year

• Reports to the Board on the overall effectiveness of internal control and risk management processes.

Additionally, a self-assessment against the checklist of internal controls contained in the Charity Commission guidance CC8 is conducted on an annual basis.

Compliance with the Regulator of Social Housing’s Governance and Financial Viability standard

During the year, the Trust was not fully compliant with the standard in two respects.

The Trust has not previously had a 30-year financial business plan but rather relied on shorter term financial business plans with only rudimentary and limited stress testing performed. The Trust has invested in some proprietary software that is widely used in the sector. Since the year end and for the first time, the Trust now has a draft 30-year financial business plan that can be used to model various scenarios. A schedule of stress tests is being developed. Once the results of the various stress test scenarios have been approved, a mitigation plan will be put in place.

The Trust has an assets and liabilities register; however, this has not been kept up to date. The Trust has commissioned a comprehensive valuation exercise to enable the assets and liabilities register to be brought up to date. A project is underway to enhance the assets and liabilities register generally.

Equality, Diversity and Inclusion

Papworth Trust is proud to be a welcoming and inclusive organisation, committed to recruiting and retaining a diverse workforce with a wide range of backgrounds and experiences which reflects the communities we work and live in.

We are committed to embedding equity of opportunity for our staff, volunteers and customers.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Disability Confident Leader

Disability Confident is a scheme run by the Department for Work and Pensions in partnership with employers and disabled peoples’ representatives, designed to help employers recruit and retain disabled workers, as well as promote a positive and inclusive work environment for disabled people. The Disability Confident Scheme has three levels; Committed, Employer and Leader. It aims to break down barriers and misconceptions surrounding disability in the workplace, encourage employers to create accessible and inclusive working environments, and provide opportunities for disabled individuals to find and maintain meaningful employment.

We have achieved leader status since 2019 and continue to champion good practice under the scheme. Through our validation accreditation, we actively support other organisations to become Disability Confident by funding a Disability Confident Advisor role and encourage all organisations within our supply chain and wider networks to employ, support and promote disabled people.

As a disability confident leader, we understand that one in every five of our staff has a disability or long-term health condition. As such, our practices aim to be exemplary, demonstrating our commitment to the scheme and our employees.

We use targeted recruitment methods to attract and retain staff from diverse backgrounds including prioritising advertising our vacancies on disability platforms to encourage applications from disabled candidates, we continue to review and develop inclusive recruitment practices and take an individual approach to support all staff to thrive. We have a reasonable adjustments budget to fund implementing reasonable adjustments to support colleagues with disabilities to succeed in the workplace.

In the last year, we have supported 76 organisations to become Disability Confident with information, advice or guidance. Of those employers:

• 40 have achieved level 1 status

• 22 have achieved level 2 status

• 2 have achieved level 3 status

Employee voice

We continue to develop our staff voice through our colleague groups. Our Employee and Wellbeing Forum, Disabled Colleagues Group and Carers Experience Group all contribute to the development and delivery of our services, reward packages and policies.

We continue to regularly survey our staff and value the high response rates we achieve in gaining feedback on what we do well and, as importantly what we can do better, as well as understanding more about how staff are feeling about the organisation.

86% of our staff recommend Papworth Trust as a great or good place to work, up from 74% the previous year and we are delighted with this progress.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Gender Pay Gap

Papworth Trust is satisfied we are paying both men and women fairly for the work they do. A number of elements have affected our pay gap results this year, including gender distribution across quartiles, the salary exchange scheme and job sector differences, for example IT and Finance roles which tend to attract higher pay than some other specialisms.

We continue to challenge ourselves to ensure our recruitment practices attract a diverse range of candidates and are inclusive. We also continue to have a robust and transparent pay award structure in place across the organisation.

Customer Involvement

As part of our Customer Focus Strategic Objective for 2024–25, Papworth Trust set out its ambition to begin developing our approach to Co-production. To support this work, we engaged with Healthwatch Suffolk, who continue to provide expert guidance through their Co-production Ambassadors programme. In December 2024, 20 staff members from across the organisation participated in dedicated training to deepen their understanding of co-production and explore its potential application within the Trust.

Our Co-production team were tasked with identifying suitable projects for coproduction, and in March 2025, selected a pilot project within our Routeways to Work employment support programme.

This pilot launched in 2025 and will conclude in the 2025–26 financial year. Upon completion, the Trust will review key learnings and outcomes to inform future improvements and integration of co-production across our services.

Streamlined Energy & Carbon Reporting (SECR)

The Board has committed to adopt SECR from 1April 2025 even though this requirement is not mandatory for the Trust.

Fundraising

The Trust is registered with the Fundraising Regulator, adhering to the Fundraising Code of Practice guidelines.

Fundraising is vital to our work. It generates income to help us create and deliver added value bespoke services to meet unmet needs that we have identified for our customers. For example, the Trust’s unique Routeways to Work programme was created as a direct result of learning of the lack of work experience and employment opportunities for disabled people. Fundraising helps us bridge the gap in service delivery costs to deliver good quality services where statutory funding falls short. Our customers, colleagues, volunteers and our local community enhance their wellbeing through feeling included and having fun by engaging with our fundraising.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Our fundraising activities enable us to do ‘extra’ great things for and with our customers and takes the form of grant applications which may be for specific projects or activities, for example, The Earl Fitzwilliam Charitable Trust recently donated £2,500 towards our Routeways to Work programme. Other fundraising activities include working with corporate partners, individual and regular donors, participation events and legacies, alongside donations in the form of pro-bono expertise and equipment.

We have had great participation in prestigious events:

• Five runners raised £8,414 in the 2024 TCS London Marathon

• 13 runners raised £3,934 in the 2025 Cambridge Half Marathon

We are developing our participation events catalogue to ensure there is ‘something for everybody’, this will include walks, skydives and events that customers can actively participate in, alongside increasing the number of places we are able to offer at the more prestigious events. All participants’ fundraising, helps raise the profile of Papworth Trust alongside raising much needed funds.

Value for Money

Papworth Trust’s mission is to support disabled people to have equality, choice and independence. As a Registered Provider of social housing, we provide safe, accessible and affordable homes for our customers and we have a portfolio of specialist housing located across the East of England. We continue to focus on delivering a high-quality service to our customers in the most efficient and effective way, working to improve levels of satisfaction whilst generating surpluses to assist in both the funding of our core services and provide ongoing improvements to our homes.

In presenting the value for money metrics for our housing portfolio for 2024-25, we follow the requirements of the Value for Money standard published by the Regulator of Social Housing (RSH).

We have elected to use benchmark comparisons with a national small provider benchmarking group, comprising up to 150 smaller social housing providers, the Small Provider Benchmark (SPBM). It should be noted, however, that whilst it is possible to find comparative organisations in terms of size and number of homes, it is more challenging to benchmark against organisations with similar operational models, i.e. small providers with high levels of supported housing spread over a wide geographical area, alongside a core of general needs homes.

This year, for the first time, we have presented the standard RSH’s Value for Money metrics in graphical form. In doing so, we have presented the current year’s metrics for both Papworth Trust and the benchmark group for the previous five years in order to place the results in a more meaningful context. In the past, current year’s metrics have been presented against prior year metrics for the Trust and the benchmarking group. The Board believes that this approach more closely follows the spirit of the RSH’s Value for Money standard.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Unlike previous years, we have provided comparative benchmark metrics for the current year. However, it should be noted that at this stage of the reporting season only half of the expected submissions have been made. Therefore, when benchmark data for 2024/25 is presented next year, the final set of median metrics will be used rather than the provisional figure shown here.

Regulator of Social Housing Value for Money Metrics

Value for Money Metrics Papworth SPBM median 2024/25 2023/24 2024/25	Papworth SPBM median	Papworth SPBM median	Papworth SPBM median
		2023/24 2024/25
Reinvestment 3.20% 0.90% 2.80%
New supply delivered 0.00% 0.00% 0.00%
Gearing 22.80% 23.00%* 12.83%
Interest cover (EBITDA MRI) 135% 181% 199%
Social Housing cost per unit £7,210 £7,253 £6,583
Operating margin (social housing) 6.04% 4.90% 15.02%
Return on capital employed	2.37%	2.90%	3.12%

*The gearing metrics for Papworth Trust for 2023/24 and 2022/23 have been restated from those previously reported to comply with the methodology set out in RSH guidance. The graph below shows gearing for 2023/24 and 2022/23 as 27.57% and 22.58%, whereas previous published metrics were 13.7% and 17.2% respectively.

Reinvestment

Our level of reinvestment has increased from 0.90% to 3.20% between 2023/24 and 2024/25.

For existing homes, in 2024/25 our annual investment has more than doubled to £1,180,000 (2024: £532,000).

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Our reinvestment percentage shows a pleasing upward trend and for the first time in six years is higher than the benchmark group median.

New Supply Delivered

We have not developed any new homes in either 2023/24 or 2024/25.

However, the Trust is working on a Development Strategy aimed at delivering net growth in our number of homes. This work is being supported by the development of a 30-year financial business plan and an assessment of our borrowing capacity.

Gearing

Gearing has decreased from 23.00% to 22.80% as our overall net debt has reduced. The Trust has not drawn down any new loans in the year whilst regular capital repayments have reduced the loan balances outstanding.

----- Start of picture text -----
Gearing %
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2019/20 2020/21 2021/22 2022/23 2023/24 2024/25
Papworth Trust SPBM benchmark
----- End of picture text -----

Gearing continues to be above the median for the benchmark group of smaller social housing providers.

Interest Cover

Our interest cover based on the EBITDA MRI has decreased from 181% to 135% due to a lower operating surplus and a the more than doubling of expenditure on capitalised major repairs.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Interest cover for 2024/25 is lower than the median of the benchmarking group.

Headline Social Housing cost per unit

Our overall headline cost per unit is similar to last year, which demonstrates increased efficiency in providing our services. Papworth Trust remains passionately committed to providing homes that are suitably adapted to meet the needs of our customers and to maximise their independence.

The following graph shows that headline social housing costs per unit for Papworth Trust seems to have followed the trend for the median cost of the benchmarking group over the past six years, with the Trust’s costs per unit being close to the median for the group.

----- Start of picture text -----
Social Housing Cost Per Unit
£8,000.00
£7,000.00
£6,000.00
£5,000.00
£4,000.00
£3,000.00
£2,000.00
£1,000.00
£0.00
2019/20 2020/21 2021/22 2022/23 2023/24 2024/25
= Papworth Trust — SPBM benchmark
----- End of picture text -----

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Operating Margin

The overall operating margin has increased this year from 4.90% to 6.04%.

----- Start of picture text -----
Operating Margin %
20.00%
18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2019/20 2020/21 2021/22 2022/23 2023/24 2024/25
Papworth Trust SPBM benchmark
----- End of picture text -----

Operating margin historically has been lower than the median operating margin for the benchmarking group as a whole. This reflects the nature of our customers and homes. It is pleasing that operating margin has returned to similar levels to those achieved in the past.

Return on Capital Employed (ROCE)

The return on capital employed has decreased in 2024/25 compared with the previous year, falling from 2.90% to 2.37% mainly due to a reduced operating surplus.

----- Start of picture text -----
Return on Capital Employed %
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
2019/20 2020/21 2021/22 2022/23 2023/24 2024/25
Papworth Trust SPBM benchmark
----- End of picture text -----

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Value for Money 2024/25

We remain focused on how we can continue to engage with and improve our services for disabled people at a sustainable cost that delivers value for money, with improved customer satisfaction whilst adhering to regulatory standards, including the recently introduced consumer regulations.

Value for Money strategy

We are in the process of refreshing our overall approach to achieving value for money by developing a new Value for Money strategy encompassing all areas of the Trust’s operations. The Board has adopted a suite of seven new Value for Money metrics specifically relating to the Trust’s operations (rather than just housing). The intention is that these will be reported on in the quarterly management accounts packs alongside the metrics required by the RSH’s Value for Money standard.

Going Concern

The Board has assessed The Papworth Trust’s current financial position and resources, future obligations and risks, together with a review of the Trust’s forward business plan, to consider the future financial viability of the Trust.

We have issued a new Business Plan which articulates our planned activity for the next three financial years and considers areas of revenue growth, as well as the likely impact of future cost pressures due to high inflation and interest rates. We have also completed risk and sensitivity testing around key areas of uncertainty, and of major cash flows, within this plan and note that the Trust anticipates having sufficient reserves and working capital to support the Business Plan. The Trust also continues to have the support of the Varrier-Jones Foundation, who have confirmed their commitment to support the Trust over the next financial year.

The Board therefore considers that it has a reasonable expectation that adequate resources exist for the Trust to continue to be operational for the foreseeable future and therefore that the adoption of the going concern principle is reasonable and appropriate in producing these financial statements.

Auditors

A resolution proposing the appointment of external auditors will be proposed at the Trustee meeting in November 2025.

Disclosure of Information to Auditors

The directors who held office at the date of approval of this Trustees’ Report confirm that, so far as they are each aware, there is no relevant audit information of which the Trust’s auditors are unaware; and each director has taken all the steps that he or she ought to have taken as a director to make himself or herself aware of any relevant audit information and to establish that the Trust’s auditors are aware of that information.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

The report of the Board of Trustees was approved by the Board, and signed on its behalf on 20 August 2025 by:

Brian Stewart OBE - Chair of Trustees

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Strategic Report

Objectives and public benefit

What we do

We offer essential support and care to disabled people. Our Mission is to help disabled people achieve equality, choice and independence. We support a wide range of disabled people, including those with physical disabilities, learning disabilities, mental ill health and sensory impairments.

We support people to live their lives to the full and be seen for who they are.

Objects

The object of the Trust is to provide relief to disabled people, including the provision of social housing, in such ways that are for the benefit of the public and charitable according to English Law.

This Object is delivered via a five-year business plan, supported by annual departmental plans and budgets. We carry out service reviews on a quarterly basis to compare the outcomes and achievements of our work to our stated aims and objectives. The reviews look at the successes and challenges of each key activity and the benefits they have brought to those individuals and groups of people, considering any risks that emerge and any resourcing that may be required. The reviews also help to ensure that our activities remain focused on our strategic objectives.

Public Benefit

The Trustees confirm that they have regard to the Charity Commission’s general guidance on public benefit whenever we review our Mission, aims and objectives and also when planning future activities, or evaluating existing ones.

We provide a benefit to the public by actively seeking to support disabled people to live their lives to the full, providing housing, employment support, care and day services as appropriate to meet the needs of our customers. We actively seek to embed our services in the wider community, recognising the benefits of an inclusive society, where everyone is seen for who they are.

We operate across the East of England and use our resources, as outlined above, to provide essential services and support, engaging with customers, commissioners and other key stakeholders to constantly evolve our offering to maximise the impact that we can achieve with the resources available.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Financial Review

Full details of our financial performance for the year ended 31 March 2025 are shown in the Statement of Comprehensive Income, Statement of Financial Position, Cash Flow Statement and Notes to the Accounts.

Turnover and operating surplus for 2024-25, with prior year comparisons, are shown in the table below:

Turnover Operating costs Operating surplus Surplus/(loss) on sale of fixed assets Interest receivable Release of impairment provision Interest payable Investment gains/(losses) Surplus for the year	2025 £’000s 14,525 (13,660) 865 (10) 62 330 (678) 186 755	2024 £’000s 14,082 (12,522)
		1,560 879 69 - (743) 860 2,625

Income

• Turnover from social housing lettings has increased to £5.5m from 2023/24 increasing by 7.8% from £5.1m.

• Care income decreased by 7% to £4.0m from £4.3m. Our Ipswich and Haverhill locations performed in line with expectations. Our Lowestoft location income was lower due to reductions in customer count throughout the year.

• Day Opportunities income increased by 27% to £1.9m from £1.5m. This was driven by a growth in the number of sessions and successful uplift negotiations. Income growth for 2024/25 exceeded expectations.

• The Work and Health Programme achieved better outcomes, resulting in increased income for the year, with the Work services exceeding anticipated income for the year by £120k in total.

• Expenditure on fundraising was lower in 2024/25 than anticipated largely due to vacancies in the team, and as a result fundraising income was also lower.

• Investment income, interest received and funding from the Varrier Jones Foundation were all similar to 2023/24.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Expenditure

• Expenditure in Care decreased due to reduced staff and agency costs, specifically in our Lowestoft and Ipswich operations. The Care sector continues to experience difficulties in attracting and retaining care workers. In April the Trust increased hourly rates for care workers, ahead of anticipated changes in the National Living Wage, to seek to improve the recruitment and retention of support workers.

• Housing expenditure has increased overall during the year, with price increases in materials and labour continuing to be a factor. We have seen delays in planned maintenance activity especially in the earlier part of the year with revenue expenditure on maintenance being £152k lower than planned for the year.

• The Work and Health Programme has remained strong throughout the year but staffing cost savings contributed to a £69k reduction in costs.

• Expenditure in Day Opportunities has increased as a result of additional costs relating to the change in the service delivery model as well as increased activity costs due to a growing customer base.

• Our support functions expenditure was broadly in line with expectations.

Statement of Financial Position (Balance Sheet)

• Cash balances have reduced by £929k, with total cash held of £3.3m (including restricted and endowment funds) at the year end. This balance includes proceeds of the sale of Bourne House amounting to £725k which continues to be ringfenced.

• The Trust’s net current asset position at the balance sheet date was £ 1.3m lower than at the previous year end. This is a product of the reduction in cash balances, an increase in current liabilities recognising that the Trust has significant loan redemptions to make in the next financial year offset by an increase in the level of accounts receivable.

• The Trust actively monitors and manages cash flow and has prepared a draft 30-year financial plan which will be tested under stress scenarios to ensure adequate future liquidity. The Trust was ahead of its target for liquid funds at the balance sheet date.

• The current year financial statements highlight an improvement in the level of deficit for the Social Housing Pension Scheme (SHPS). The scheme has seen a slight reduction in the fair value of plan assets but this was less than the decrease in our present value of defined obligations. The Trust also made deficit repayment contributions of £745k in the year and has a schedule of deficit repayment obligations running until March 2028, based upon the outcome of the last triennial valuation, which was as at 30 September 2023.

Treasury Management

The Trust’s historic housing development has been financed through a combination of Social Housing Grant, long term loan facilities and surpluses generated through normal activities and through fundraising.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Treasury activities are managed by the Finance Team and overseen by the Finance, Audit and Risk Committee. During the year a new Treasury Management Policy has been put in place. This policy will be reviewed on a regular basis. Treasury strategy is set in line with expected future requirements and is informed by long term financial projections to ensure adequate funding is in place to meet future investment in new and existing homes. Stress testing is planned to ensure that the Trust has potential mitigations in place in the event of multiple events occurring that place stress on working capital. Working capital requirements are held as cash, with surplus funds being invested through the Trust’s investment managers. Potential drawdowns from investments are considered as part of the Trust’s financing plan to support working capital as required.

At the year end the Trust had £1m remaining undrawn of a £3m loan facility established in 2022/23. This is anticipated to be drawn down in the forthcoming financial year.

Loan Covenants

There are several loan covenants in place on the Trust’s long-term loans, the key measures being asset cover and interest cover. Breach of covenants could result in loans becoming immediately repayable. Loan covenant tests are monitored monthly and were comfortably met for the year ended 31 March 2025.

Plans for the future – a new 5-year Business Plan

The next five years will continue to deliver challenges as we navigate the increased regulation, increased costs and reduced funding in all areas of our operations. Through commissioning a market intelligence report, we have sight of where we sit in the market in terms of our offer and reputation along with recommendations to support our growth and delivering person centred, and innovative services.

We continue to go from strength to strength, having developed a housing strategy which sees us focus on delivering a high-quality tenant experience, good quality homes that are safe, warm and dry for our current and future customers, providing value for money and developing new homes for disabled people. Our expertise has been clearly demonstrated in our ability to deliver exceptional employment services to disabled people, however at the time of writing this, we wait to hear from Local Authorities as to how the Government’s ‘Get Britian Working’ white paper will be delivered locally and the opportunities available to the Trust. Our Care services have made great strides to increase our retention of staff, with the next step being to grow and continue to focus on the quality of our service delivery. One of our Day Opportunities centres has just moved to Sawston, having an ambitious growth plan including supporting adults with profound and multiple learning disabilities. We are focussing on how we ensure we continue to deliver great services, meeting the needs of our customers in the community and in accessible and appealing environments across all our locations.

We continue to progress our digital pathway, recognising the rewards that technology can provide in terms of efficiency and accessibility. Our culture remains a priority for the Trust; we are developing our approach to co-production and continue to drive our work on staff rewards, and engagement.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

The Trust is in a good place, we employ great people, committed to delivering high quality services for disabled people and are proud to continue to punch above our weight.

We recognise there is a lot of work to do over the next five years, whilst navigating a continually uncertain landscape. We have developed six new Strategic Objectives to help us achieve our aims and ambitions:

Customers shape our services

We will:

• Define our approach to co-production and pilot with small projects

• Establish and embed methods to capture customer satisfaction

• Analyse trends and lessons learned from complaints received

Deliver high quality services

We will:

• Secure new employment support contracts whilst continuing to develop our Routeways to Work offer

• Ensure our Care services are CQC rated as a minimum ‘Good’ and continue to grow these in a sustainable manner

• Create a Papworth Trust Day Opportunities identity and develop a defined Customer Pathway for existing and new customers

Our buildings are fit for the future

We will:

• Develop a high-quality tenant experience of our services, working with our tenants to co-produce services that meet our tenants’ needs

• Deliver quality homes that are safe, warm and dry for our current and future tenants

• Develop new homes for disabled people

Grow and integrated our services

We will:

• Implement a new Care Management system

• Commission a Housing portal for tenants to engage digitally with us

• Scope new digital systems that will enhance their workings

• Provide more volunteering opportunities to a wider range of people

• Create a Participation Events programme that offers participants thorough choice and opportunity to increase fundraised income

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Influence and inspire

We will:

• Set a target that 40% of the organisations we support through the Disability Confident scheme will achieve Level 2 or above

• Undertake a pilot with Care customers to better understand the positive role that Assistive Technology can have on their daily lives

Get the basics right and build on them

We will:

• Build a robust 30-year financial business plan

• Implement and embed a value for money strategy

• Publish our Equity, Diversity, Inclusion and Belonging (EDIB) strategy and action plan

• Embed coaching skills across the organisation and upskill our current, new and aspiring managers

Principal risks and uncertainties

Management of risk is an integral part of our planning and project management processes. The Papworth Trust has adopted a formal process for approval of new projects which identifies risks and controls. Combined with the business planning processes, which review risks and controls in existing processes, and business reviews to track both systemic and emerging risks, this generates a comprehensive review of risks facing the Trust.

We maintain a risk register in which risks are documented and evaluated so that major risks can be identified and the effectiveness of controls which mitigate these risks can be assessed and compared to the Board approved risk appetite. The system of internal control is designed to manage key risks and to provide reasonable assurance about the reliability of financial and operational information and the safeguarding of the Trust’s assets and reputation. This is supported by a programme of internal audits, both financial and operational, to provide assurance to Trustees of the effectiveness of controls in operation. The Trustees have reviewed the internal controls in operation during the period and are satisfied that there are no issues leading to any material uncertainty regarding these financial statements.

The Finance, Audit and Risk Committee and the Trustee Board monitor and review our principal risks and the processes for managing them, together with the arrangements for internal and external audits and preparation of financial statements. The Finance, Audit and Risk Committee has oversight over regulatory compliance. The Quality and Engagement Committee oversees quality standards for our service delivery, and monitors risks against these.

The critical risks and uncertainties have been identified, and are documented in the table below, along with mitigation strategies in place to address the potential impact of any risk materialising.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Key risk Responses to the risk	Key risk Responses to the risk
Financial Sustainability Because the environment is challenging and full of uncertainty for both us and our donors, with upward cost pressures due to high inflation and interest rates, and challenges to increase revenues to match, we may not perform in accordance with our current financial plan, resulting in us having insufficient funds to operate our services to the desired quality or with the desired reach.  Effective management information framework, including budgeting and forecasting, and robust internal controls  Long term plans and reserves policy established, and stress tested to ensure resilience  Investment portfolio professionally managed and tested against our risk appetite  Risk Management framework established to ensure potential adverse impacts are identified, mitigated accordingly and contingency plans are in place  Regular engagement with our key sponsors
Our People Because our people are key to everything we do at all levels of our organisation, and because the employment and volunteer markets continue to be challenging, we may struggle to recruit and retain people to provide the skills and capacity that we need, resulting in us needing to limit the scope of our provision or not achieving the quality of delivery required, or not having the right skills mix around our board table.  Benchmarking exercises conducted to re-align reward packages, where appropriate  Greater focus on well-being and development of a more holistic reward package for staff  Development pathways opened up for staff with potential to grow with the organisation  Succession plans and business continuity plans established to mitigate any single key person / function dependency  Trustee skills assessment and regular appraisal to ensure we have the right skills to support the organisation
Service Quality and Continuity Because we operate in high-profile regulated sectors supporting vulnerable people, we may not be able to deliver services to the standard expected or to keep up with changes in our operating landscape, resulting in poor service quality, health and safety, safeguarding or cyber security failures leading to material downgrade in our reputation with customers and commissioners.	 Clear, regularly reviewed organisational policies in place, tracked and supported by structured training managed through a central portal  Complaints process in place with rigorous follow up procedures  Secured Cyber Essentials Plus accreditation, ensuring data is kept secure and our infrastructure resilient  Working groups established for Health and Safety, Safeguarding, Data governance etc to ensure regulations are tracked and monitored and organisational policies and procedures are maintained  Testing of Business Continuity, including penetration testing, conducted regularly, with agreed actions monitored by the Executive Team

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Key risk Responses to the risk	Key risk Responses to the risk
Quality of Housing Stock Because requirements, and the level of potential support from government, to achieve net zero targets is not yet known with certainty, and because our housing stock is typically quite old and on the whole has not been built to modern construction standards we may have challenges meeting future housing standards and ensuring that our homes remain decent, resulting in an inability to let certain properties and retaining an element of housing stock that is no longer viable.  Comprehensive stock condition surveys undertaken  Housing strategy development  3-year capital programme agreed to improve procurement and secure financing  Impact assessments conducted for all poorly performing stock and appraisals / action plans being developed  Contingencies factored into our long-term 30- year financing plans, together with stress testing to provide comfort we have the resilience to adapt to a range of unforeseen circumstances
Breach of regulations Because the Trust works with vulnerable people in a number of highly regulated environments and because new regulations are regularly being proposed, a breach of regulations could lead to a downgrade of assessment and / or significant reputational damage, resulting in penalties and material financial loss.  Deployed a risk-based Assurance Framework, with focus on highly regulated areas such as Care prioritised, and engagement of further Internal Audit resource  Maintenance of our self-assessment model to create greater local accountability, as well as independent scrutiny  Effective reporting, safeguarding and whistle- blowing policies and procedures in place, as part of a structured policy register, with scheduled review points
Strategic Alignment Because we are operating in a changing environment where there is an increasing scope and scale of demand, coupled with constrained resources to deliver, we may not retain suitable focus on our core priorities resulting in the needs of our beneficiaries and other stakeholders not being properly addressed.	 Regular strategy reviews, with horizon scanning and three-year planning cycle to clearly define strategic objectives (SO’s)  Monitoring mechanisms established, and KPI’s and dashboards developed, to ensure effective progress against these SO’s  Board effectiveness reviews, and Trustee assessments, ensure we continually monitor our governance structures to effectively deliver our strategy

The Trustees recognise that achieving maximum impact for disabled people does involve risk, but believe that the frameworks in place, and the measures outlined above to manage and monitor these risks, best position the organisation to achieve meaningful and long-lasting results. The Trustees will continue to monitor the external landscape, both short and long term, to ensure charitable funds are appropriately safeguarded and effective delivery maintained within the governance and regulatory landscapes in which we work.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

The Strategic Report was approved by the Board and signed on its behalf on 20 August 2025 by:

Brian Stewart OBE Chair of Trustees

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Statement of the Board of Trustees’ responsibilities in respect of the Board of Trustees’ Annual Report and the financial statements

The Trustees are responsible for preparing the Strategic Report, the Trustees’ Report 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 they have elected to prepare the financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102 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 Trust and of the surplus or deficit for that period. In preparing these financial statements, the Trustees are required to:

• Select suitable accounting policies and then apply them consistently.

• Make judgements and estimates that are reasonable and prudent.

• State whether applicable UK Accounting Standards and the Statement of Recommended Practice have been followed, subject to any material departures disclosed and explained in the financial statements.

• Assess the Trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and

• Use the going concern basis of accounting unless they either intend to liquidate the Trust or to cease operations or have no realistic alternative but to do so.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Trust’s transactions and disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the financial statements comply with the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2022. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Trust and to prevent and detect fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Trust’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Independent Auditor’s Report to the Members of The Papworth Trust

Opinion

We have audited the financial statements of The Papworth Trust for the year ended 31 March 2025 which comprise Statement of comprehensive income and statement of changes in reserves, the Balance sheet, the 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 FRS 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:

• give a true and fair view of the state of the company’s affairs as at 31 March 2025 and of the income and expenditure for the year then ended.

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice.

• have been properly prepared in accordance with the requirements of the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2022.

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 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 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.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Other information

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

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 course of 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 the audit:

• the information given in the Strategic Report and the Trustees Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Strategic Report and the Trustees Annual Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Trustees’ Annual 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:

• adequate accounting records have not been kept by the company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of Trustees’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Respective responsibilities of Trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 32 the Trustees (who are also the directors of the 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 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 company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditors under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.

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.

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

• obtained an understanding of the nature of the sector, including the legal and regulatory frameworks that the company operates in and how the company are complying with the legal and regulatory frameworks.

• inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud.

• discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures, we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, the Companies Act 2006, Charities Act 2011, the Housing and Regeneration Act 2008, the Accounting Direction for Private Registered Providers of Social Housing 2022 and tax compliance regulations. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures and inquiring of management whether the company is in compliance with these laws and regulations and inspecting any correspondence with external tax advisors.

The most significant laws and regulations that have an indirect impact on the financial statements are Health and Safety at Work Act 1974 and Regulator of Social Housing Regulatory Standards (both Economic and Consumer standards). We performed audit procedures to inquire of management whether the company is in compliance with these law and regulations and inspecting any correspondence with licensing or regulatory authorities.

The audit engagement team identified the risk of management override of controls and completeness of revenue streams as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to any significant, unusual transactions and any transactions entered into outside the normal course of business and performing tests of detail on revenue recognised in the year and subsequent to the year end.

A further description of our responsibilities for the audit of the financial statements is provided on the Financial Reporting Council’s website at:

https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Use of our report

This report is made solely to the 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 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Laragh Jeanroy (Senior Statutory Auditor) For and on behalf of RSM UK Audit LLP, Statutory Auditor Chartered Accountants 1st Floor, Platinum Building St John's Innovation Park Cowley Road Cambridge CB4 0DS Date

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Statement of Comprehensive Income

Note Turnover 3 Operating costs 3 Operating surplus (Loss)/surplus on disposal of tangible fixed assets 8 Interest receivable Interest payable and similar charges 9 Release of impairment provision 10 Gains on investments Surplus for the year Movement in defined benefit pension scheme 22 Total Comprehensive income	2025 £’000s 14,525 (13,660) 865 (10) 62 (678) 330 186 755 367 1,122	2024 £’000s 14,082
		(12,522)
		1,560 879 69 (743) - 860
		2,625
		(719)
		1,906

The accounts relate to continuing operations. The notes on pages 48 to 78 form part of these financial statements.

Statement of Changes in Funds

Note Balance at 1 April Prior Year Adjustment 27 Surplus for the year Decrease/(increase) in Defined Benefit Pension liability Balance at 31 March	2025 £’000s 27,287 - 755 367 28,409	Restated 2024 £’000s 25,542 (161) 2,625 (719) 27,287

The notes on pages 43 to 69 form part of these financial statements.

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The Papworth Trust

Report and Accounts for the year ended 31 March 2025

Statement of Financial Position Notes Fixed Assets Housing Properties 10 Other Fixed Assets 11 Investments 12 Endowment Fund investments 13 Total fixed assets Current Assets Debtors - amounts falling due within one year 15 Cash and cash equivalents 27 Creditors: Amounts falling due within one year 16 Net current assets/ (liabilities) Total assets less current liabilities Creditors: Amounts falling due after more than one year 17-18 Provisions for liabilities and charges Other Provisions 21 Pension liabilities 22 Net assets Funds Restricted Funds Endowment Funds Unrestricted Funds: Designated Funds 17,556 General Reserves 7,705 Total Unrestricted Funds Total Funds 25/27	2025 £’000s 36,828 2,503 10,390 437 50,158 1,114 3,171 4,285 (3,962) 323 50,481 (19,766) (406) (1,900) 28,409	2025 £’000s 36,828 2,503 10,390 437 50,158 1,114 3,171 4,285 (3,962) 323 50,481 (19,766) (406) (1,900) 28,409	Restated 2024 £’000s 36,691 2,492 10,204 435
			49,822
			1,083 4,101
			5,184 (3,722)
			1,462
			51,284
			(20,929) (203) (2,865)
			27,287
	2,711 437 17,595 6,422 25,261 28,409		2,835 435 24,017 27,287

The notes on pages 43 to 69 form part of these financial statements.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Cash Flow Statement Cash flows from operating activities Operating surplus Adjustment for: Depreciation Amortisation ofgrants	2025 £’000s 865 1,515 (368) (31) 788 (745) 2,024 (555) - (1,439) (1,439) - (960) (960) (930) 4,101 3,171	Restated 2024 £’000s 1,560 1,489
		(368)
Decrease/(increase) in trade and other debtors Increase in trade and other creditors Pensions deficitpayments made		183 42 (630)
Net cash inflow Interest paid Cash flows from investing activities Proceeds from disposal of fixed assets Acquisition of tangible fixed assets Net cash (outflow)/inflow from investing activities Cash flows from financing activities Repayment of borrowing Net cash (outflow) from financing activities Net (decrease)/increase in cash Cash and cash equivalents at 1 April Cash and cash equivalents at 31 March
		2,276
		(630)
		969 (578)
		391
		- (1,029)
		(1,029)
		1,008 3,093
		4,101

The notes on pages 43 to 69 form part of these financial statements.

These Financial Statements were approved by the Board, and signed on the Board’s behalf on 20 August 2025 by:

B Stewart Chair / Trustee

M Anderson Treasurer / Trustee

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Notes to the financial statements

1. Legal Status

The Trust is a registered charity constituted as a company limited by guarantee. The Trust is also registered with the Regulator of Social Housing. The principal objective of the Trust is to provide care and support to disabled people, which it does through providing essential services including social housing. The Trust’s registered office is at 1 Saxongate, Bradbury Place, Huntingdon, PE29 3RR.

2. Accounting Policies

These financial statements have been prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP) including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), the Housing SORP 2018 “Statement of Recommended Practice for Registered Housing Providers” and they comply with the Accounting Direction for Private Registered Providers of Social Housing 2022. They have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The presentation currency of these financial statements is GBP (Great British Pounds). All amounts in the financial statements have been rounded to the nearest £1,000.

2.1 Going concern

The Board has assessed the Trust’s financial performance and resources having regard to the 2025/26 budget and long-term financial business plan. As a consequence, the Board believes that the Trust is well positioned to manage business risks and expects to have adequate resources to operate for the foreseeable future. The Board therefore continues to adopt the going concern basis in the preparation of these financial statements.

2.2 Turnover

Turnover represents the income derived from the provision of the Trust’s activities, comprising the sale of goods and services, property rental income net of voids, amortisation of Social Housing Grant, revenue grants, a donation from the Varrier-Jones Foundation, charitable gifts and investment income received.

Rental income is recognised from the point when it becomes due. Income for services is recognised when services have been delivered. Income from grants is recognised when the conditions of the grant have been met. Income from investments is recognised in the period to which it relates.

2.3 Expenses

Cost of sales

Cost of sales represents the direct costs and overheads involved in providing social housing and other charitable activities.

Operating costs

Operating costs represent the support and premises costs that enable the Trust to provide social housing and other charitable activities.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Operating leases

Payments (excluding costs for services and insurance) made under operating leases are recognised in the Statement of Comprehensive Income on a straight-line basis over the term of the lease unless the payments to the lessor are structured differently e.g. increased in line with expected general inflation; in which case the payments related to the structured increases are recognised as incurred in the period to which they relate.

Interest payable

Interest payable and similar charges are charged to the Statement of Comprehensive Income when incurred on an accruals basis.

2.4 Tangible fixed assets – housing properties

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment charges. Cost includes the cost of acquiring land and buildings, directly attributable development costs, and expenditure incurred in respect of improvements which comprise the modernisation and extension of existing properties. Where components of tangible fixed assets have different useful lives, they are accounted for separately.

2.5 Depreciation – housing properties

Depreciation is charged to the Statement of Comprehensive Income account on a straight-line basis over the estimated useful lives of each component part of a housing property. Land is not depreciated. No depreciation is charged on housing properties or components under construction. The estimated useful lives are as follows:

Structure	50-80 years
Roof	60 years
Electrical installations	40 years
Windows and doors	30 years
Heating (excluding boilers), plumbing and ventilation	30 years
Bathrooms	20 years
Boilers	15 years
Kitchens	15 years
Flooring	10 years

Depreciation methods, rates and residual values are reviewed if there is an indication of a significant change in the expectation of typical useful lives of asset groups.

2.6 Non-component works to existing properties

The amount of expenditure incurred that relates to an improvement is capitalised. Works that increase the net rental stream of a property or extend its useful life are classed as improvements. Expenditure incurred on other major repairs, cyclical and day-to-day repairs and maintenance to housing properties is charged to the income and expenditure account in the period incurred.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

2.7 Other fixed assets

Other tangible fixed assets include those with an individual value at cost in excess of £1,000.

Depreciation is charged to the Statement of Comprehensive Income on a straight-line basis over their estimated useful lives. Freehold land is not depreciated. The estimated useful lives are as follows:

useful lives are as follows:
Freehold buildings (non-housing)	50 years
Leasehold improvements	over the life of the lease
Motor vehicles	4-6 years
Plant, machinery and fixtures	3-15 years
Office equipment	5-10 years

2.8 Properties held for sale and work in progress

Assets under construction are held at cost within the relevant category of fixed assets and are not depreciated until the asset is in use.

Properties held for sale are recognised at the lower of depreciated cost and net realisable value. They are classified as current assets when the Trust deems disposal probable within the next twelve months. Net realisable value is based on estimated sales price after allowing for all further costs of completion and disposal.

2.9 Basic financial instruments

Trade and other debtors, including tenant arrears; trade and other creditors

These are recognised initially at transaction value less attributable transaction cost. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument.

Interest-bearing borrowings classified as basic financial instruments

Interest-bearing borrowings are recognised initially at fair value less attributable transaction cost. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method, less any impairment charges.

Derecognition of financial assets and liabilities

A financial asset is derecognised only when the contractual rights to cash flows expire or are settled, or substantially all the risks and rewards of ownership are transferred to another party, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

2.10 Impairment

The Trust conducts an annual impairment review of individual tangible fixed assets and cash generating units. The Trust considers cash generating units to be schemes or geographical areas depending on size. The review considers internal and external indicators of impairment; including obsolescence, physical damage, expected cash flows, replacement values market factors and government policy. Where an indicator of impairment exists, an impairment assessment is performed. The assessment compares the carrying amount to the recoverable amount If the carrying amount of an asset or cash generating unit exceeds the higher of the value in use or fair value less costs to sell then the loss is charged to the Statement of Comprehensive Income as expenditure and as a separate line within operating expenditure where it is considered to be material.

2.11 Social Housing Grant

Social Housing Grant (“SHG”) is initially recognised at fair value as a long-term liability, specifically as deferred grant income and released through the Statement of Comprehensive Income as income over the life of the structure of housing properties in accordance with the accrual method applicable to social landlords accounting for housing properties at cost. The income released is disclosed under turnover in the Statement of Comprehensive Income.

On disposal of properties, all associated SHG is transferred to either the recycled capital grant fund until the grant is recycled or repaid to reflect the existing obligation under the social housing grant funding regime.

2.12 Investment assets

Investments are carried at mid-market value as at the balance sheet date. Movements in asset valuations are recorded in the Statement of Comprehensive Income.

2.13 Retirement benefits

The Trust participated in one defined benefit pension scheme, the Social Housing Pension Scheme (SHPS)during the year, although the Trust closed the scheme to further accrual in 2019. SHPS is a multi-employer scheme which provides benefits to nonassociated employers. Associated assets and liabilities are allocated to each employer for accounting purposes. The net defined benefit liability represents the present value of the defined benefit obligation minus the fair value of plan assets out of which obligations are to be settled.

The rate used to discount the benefit obligations to their present value is based on market yields for high quality corporate bonds with terms and currencies consistent with those of the benefit obligations.

The last triennial valuation of the scheme for funding purposes was conducted as at 30 September 2023.

Gains/Losses

Gains or losses recognised in the Statement of Comprehensive Income are as follows:

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

• The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost.

• Net interest on the net defined benefit asset/liability comprises the interest cost on the defined benefit obligation and interest income on the plan assets, calculated by multiplying the fair value of the plan assets at the beginning of the period by the rate used to discount the benefit obligations.

Gains or losses recognised in other comprehensive income are as follows:

• Any actuarial gains and losses.

• The difference between the interest income on the plan assets and the actual return on the plan assets.

2.14 Termination benefits

Termination benefits are recognised as an expense when the Trust is demonstrably committed, without realistic possibility of withdrawal, to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognised as an expense if the Trust has made an offer of voluntary redundancy, it is likely that the offer will be accepted, and the number of acceptances can be estimated reliably. If benefits are payable more than 12 months after the reporting date, then they are discounted to their present value.

2.15 Provisions

A provision is recognised in the balance sheet when the Trust has a present legal or constructive obligation as a result of a past event, which can be reliably measured, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

2.16 Service charges

Service charge income and costs are recognised on an accrual basis. The Trust applies service charges where applicable to schemes, ordinarily on a fixed basis, in consultation with residents. The budgets are set annually, informed by past costs and future planned activity. Any balances remaining are held as creditors or debtors in the Statement of Financial Position until such time as all costs are recognised. Where periodic expenditure is required, a provision may be built up over the years, in consultation with the residents. Until these costs are incurred, this liability is held in the Statement of Financial Position within creditors.

2.17 Value Added Tax (VAT)

The Trust’s main income stream, being rent, is exempt for VAT purposes. The financial statements include VAT to the extent that it is suffered by the Trust and not recoverable from HM Revenue and Customs (HMRC). The Trust is able to reclaim VAT in line with a partial exemption method agreed with HMRC. VAT reclaimed under the partial exemption method is calculated using a sectorised approach, allowing the different activities of the Group to be assessed separately for recovery based on the VAT treatment of the supply. The balance of VAT payable to or recoverable at the year-end is included in the financial statements as a current liability or asset.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

2.18 Corporation Tax

As a registered charity, the Trust is exempt from UK corporation tax to the extent that incomes or other gains are applied exclusively for charitable purposes. Corporation tax on any income or gains that do not meet the criteria for exemption would be included on the Statement of Comprehensive Income.

2.19 Reserves

Restricted funds

Restricted funds represent unspent funds received for specific purposes from external funders. Restricted funds are only expendable in relation to the purposes for which they were received.

Endowment funds

Endowment funds are held where the funds are part of either an expendable or permanent endowment fund. Endowment funds are only expendable in relation to the purposes for which they were received.

Designated funds

Designated funds are reserves that have been identified for specific purposes by the Trustees.

General reserves

General reserves are held at a level appropriate for working capital and contingency and are reviewed annually by the Board. The general reserves have been subject to a Prior Year Adjustment, reducing the opening balance for the year by £161,000. Details are given in note 27 of the financial statements.

2.20 Accounting estimates and judgements

In producing these financial statements, the Trust has made estimates and judgements that it feels give a true and fair view. Accounting policies and judgements are assessed against current accounting standards, sector practice and market conditions, and reviewed annually for appropriateness.

Impairment

Housing stocks are assessed for impairment when an indicator of impairment is noted. Carrying values are considered to ensure that they are not greater than net present value, calculated using a discounted cash flow basis for housing stock that is in use. Where housing properties are not in use the net realisable value is calculated with reference to the potential sales value of the property. Any impairment provisions made are re-evaluated each year and released or augmented as required.

Bad Debts

Provisions are made for bad debts when there is deemed to be significant risk to recovery. For tenant arrears, bad debt provision is made in all instances for former tenants unless a clear recovery plan is in place. For existing tenants, consideration for provision will be made based on the ageing profile of the debt.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

For other debtors, provision will be considered for transactions that are over three months overdue, with consideration being made for each debt based on the customer profile and the type of debt.

Defined benefit pension scheme

Accounting estimates are made for the defined benefit pension scheme SHPS. The Trust has adopted the standard actuarial assumptions used by the scheme as the Trust’s membership profile is not considered to be untypical of the membership of the scheme as a whole.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

3. Social Housing and other activities Rent Receivable (net of service charges) Profit on disposal social housing assets Service Charges Net Rent Receivables Other Income Total Income from lettings Expenditure on letting Activities Management Services Routine Maintenance Planned Maintenance Bad debts Depreciation of housing properties Depreciation of other housing assets Total expenditure on lettings Operating surplus on lettings Void Losses (Included within the above)	2025 General Needs £’000s	2025 Supported Housing £’000s	2025 Total £’000s	2024 Total £’000s
	1,031 - - 1,031 - 1,031 (291) (24) (441) (33) - (191) (5) (985) 46 (74)	3,222 - 1,185 4,407 - 4,407 (780) (391) (2,108) (92) (9) (1,121) (14) (4,515) (108) (127)	4,253 - 1,185 5,438 - 5,438 (1,071) (415) (2,549) (125) (9) (1,312) (19) (5,500) (62) (201)	3,971 - 1,132
				5,103
				-
				5,103
				(896) (308) (2,230) (133) (1) (1,267) (17)
				(4,852)
				251
				(172)

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The Papworth Trust

Report and Accounts for the year ended 31 March 2025

3. Social housing and other activities (continued)

3. Social housing and other activities (continued)
Social Housing Lettings General Needs Supported Housing Other Social Housing Activities Other housing Activities Amortised grant income Non-Social housing Activities Work Services Care Services Opportunities without Limits Policy and Comms Business Development VJF Donation Fundraising Enabling Investment Income Remeasurement of pension Total Social Housing and non-housing activity surplus/(deficit) Gain on disposal of assets Release of impairment provision interest payable Interest Receivable Gain on investment Surplus for year	Turnover £’000s	Cost of Sales £’000s	2025 Operating Costs £’000s	Operating Surplus £’000s
	1,031 4,407 5,438 22 368 390 878 4,047 1,933 - - 1,350 100 152 237 - 8,697 14,525	(505) (3,152) (3,657) (51) - (51) (738) (4,318) (1,874) - - - (209) - (73) - (7,212) (10,920)	(480) (1,363) (1,843) - - - - - - (150) (57) - - (647) - (43) (897) (2,740)	46 (108)
				(62)
				(29) 368
				339
				140 (271) 59 (150) (57) 1,350 (109) (495) 164 (43)
				588
				865
				(10) 330 (678) 62 186 755

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The Papworth Trust

Report and Accounts for the year ended 31 March 2025

4. Housing Stock

4. Housing Stock
5. Expenses and auditor's remunerations 2025 £'000s Depreciation on housing properties 1,312 Loss on replacement of component asset 11 Release of impairment provision on housing properties (330) Depreciation on other fixed assets 236 Profit on sale of other fixed assets (11) Costs of operating leases 65 Auditor's remuneration: Audit of these financial statements 41 6. Staff and employee costs 2025 £'000s Wages and Salaries 6,351 Social Security costs 570 Pension costs 180 7,101 General needs Supported 2025 Total Number of Units 173 499 672 Owned and managed 173 496 669 Managed on behalf of others - 3 3 173 499 672	General needs	Supported			2025 Total		2024 £'000s 1,267 8 - 239 (887) 76 34 2024 £'000s 2024 Total 673 669 4 673
				2025 £'000s 499 672 496 669 3 3 499 672
				1,312 11 (330) 236 (11) 65 41 2025 £'000s
				6,351 570 180 7,101			6,127 524 187
							6,838

The average number of persons employed by the Trust (including executive directors but excluding Trustees) during the year was as follows:

Average Headcount	234	238
Average full time equivalent	192	198

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

7. Board Members and Executive Directors

The Directors, for this note, are defined as the Trustee members of the Board, the Chief Executive and the Executive Team. The Directors in Company Law are the Trustees. Trustee roles are unremunerated.

Aggregate emoluments paid to Directors Pension	2025 £'000s	2024 £'000s
	435 32 467	375 31 406

Total emoluments paid to the highest paid Director: £126,199 (2024: £120,000)

Total number of paid Directors: 6(2024: 4)

Number of Directors in the defined benefit pension scheme None (2024: None)

In addition to the above the highest paid director received pension contributions of £13k (2024: £13k).

During the year no consideration was paid to Trustees for performing their roles (2024: Nil). In the year out of pocket expenses totalling £679 (2024: £708) were paid to members of the Board.

8. Surplus on disposal of tangible assets

Proceeds from sale of assets Cost of sale of assets	2025 £’000s 2024 £’000s
	- 969 (10) (90)
	(10) 879

9. Interest payable and similar charges

Interest payable on financial liabilities Interest payable on the unwinding of the net pension deficit liability	2025 £’000s 2024 £’000s
	555 629 123 114
	678 743

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

10. Housing Properties

Cost Balance at 1 April 2024 Acquisitions Allocation of work in progress Disposals At 31 March 2025 Depreciation Balance at 1 April 2024 Depreciation charge for year Release of impairment provision Disposals At 31 March 2025 Net Book Value At 31 March 2025 At 31 March 2024	General Needs £’000s	Supporting Living £’000s	Capital works in progress £’000s	Total £’000s
	7,750 289 - (3) 8,036 3,693 142 - (3) 3,832 4,204 4,057	52,741 880 - (26) 53,595 20,172 1,166 (330) (26) 20,982 32,613 32,569	65 11 (65) - 11 - - - - - 11 65	60,556 1,180 (65) (29)
				61,643
				23,865 1,308 (330) (29)
				24,814
				36,828
				36,691

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

11. Other fixed assets Cost Balance at 1 April 2024 Acquisitions Disposals At 31 March 2025 Depreciation Balance at 1 April 2024 Depreciation charge for year Disposals At 31 March 2025 Net book value At 31 March 2025 At 31 March 2024	Land & Buildings £,000 5,603 101 - 5,704 3,196 198 - 3,394 2,310 2,407	Motor Vehicles £,000 292 127 (11) 408 251 18 - 269 139 41	IT Assets £,000 154 30 - 184 125 16 - 141 43 29	Other Fixed Assets £,000 259 - - 259 244 4 - 248 11 15	Total £,000 6,308 258 (11)
					6,555
					3,816 236 -
					4,052
					2,503
					2,492

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

12. Investments

2. Investments
Market value at 1 April Additions Disposals Realised gains Unrealised (Losses)/Gains Unrealised & other movements Market Value at 31 March Historical cost of assets Historical cost of assets Unrealised gains Market Value at 31 March Held as follows: Fixed Income Cash & cash equivalents Alternative Investments UK Equities Global Equities Market Value at 31 March	2025 £'000s	2024 £'000s
	10,204 5,417 (5,801) 435 249 (114) 10,390 2025 £'000s	9,358 4,892 (4,814) 70 790 (92)
		10,204
		2024 £'000s
	9,433 957 10,390 2025 £'000s	8,972 1,232
		10,204
		2024 £'000s
	1,265 1,000 979 503 6,643 10,390	1,637 415 756 771 6,625 10,204

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

13. Endowment fund assets

Cash Investments Property	2025 £’000s	2024 £’000s
	162 119 156 437	162 117 156 435

Total cash balances amount to £3,333,000 (2024: £4,263,000) but include endowment fund assets of £162,000 (2024: £162,000), hence cash and cash equivalents is disclosed as £3,171,000 (2024: £4,101,000).

14. Properties held for disposal

Certain housing properties are currently being considered for disposal but a formal decision to sell has not yet been made by Board.

15. Debtors

Trade Debtors Prepayments and Accrued income Tenant arrears Other debtors Tenant Arrears: Current tenant arrears - less provision for bad and doubtful debts Former tenant arrears - less provision for bad and doubtful debt 16. Creditors: amounts falling due within one year	2025 £’000s	2024 £’000s
	779 253 77 5 1,114 2025 £’000s	780 216 86 1
		1,083
		2024 £’000s
	70 - 36 (29) 77 2025	86 - 31 (31) 86 2024

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Loans (note 20) Trade creditors Other taxation and social security Other creditors Rents received in advance Accruals and deferred income Recycled capital grants fund 17. Creditors: amounts falling due after one year Loans Deferred Grant Income Deferred grant income Recycled capital grants fund Social Housing grants Other grants Other Amounts falling due within one year Amounts falling due more than one year Other Grants		£’000s		£’000s 1,200 224 164 1,050 233 718 133 3,722 2024 £'000s
		1,037 633 168 1,110 135 738 141 3,962 2025 £'000s
		10,551 9,215		11,346 9,583
		19,766		20,929
		2025 £'000s		2024 £'000s
		141 9,201 14		133 9,565 18
		9,356		9,716
		141 9,201 14 9,356		133 9,565 18 9,716

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

18. Social Housing Grant

8. Social Housing Grant
Cost Cost at 1 April Additions/ disposals in year Cost at 31 March Amortisation Amortisation at 1 April Amortisation income in year Amortisation at 31 March Deferred Grant income Recycled Capital Grant Fund At 1 April Disposed of in year Utilised in the year Interest Credited to the fund At 31 March	2025 £'000s	2024 £'000s
	19,434 - 19,434 9,850 368 10,218 9,216 2025 £'000s	19,434 -
		19,434
		9,482 368
		9,850
		9,584
		2024 £'000s
	133 - - 8 141	125 - - 8 133

19. Loans and borrowings

All loans and borrowings are measured at amortised cost.

Secured bank loans are secured by way of a first fixed charge over specified housing properties and include an asset cover test based on the ratio of the value of properties secured to the carrying value of the loan. Secured bank loans include interest cover and gearing covenants each of which is tested annually against relevant disclosures within the Statement of Comprehensive Income and the Balance Sheet of the financial statements.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Secured bank loans Due within one year Due between one and two years Due between two and five years Due in greater than five years Outstanding loans by lender Orchard Brook Lloyds Royal Bank of Scotland Barclays Triodos 20. Analysis of Net Debt Net debt at 1 April Cash flows in period Loan Borrowings Repayment of borrowing Balance at 31 March Net debt made up as follows: Loans due in less than one year Loans due in more than one year Cash held Net debt held		2025 £’000s	2024 £’000s 1,200 1,414 2,477 7,455 12,546 406 2,521 3,869 3,750 2,000 12,546 Restated 2024 £'000s
		1,037 2,238 3,015 5,296 11,586 395 2,396 3,295 3,500 2,000 11,586 2025 £'000s
		8,445 932 0 (960) 8,417 1,037 10,551 (3,171) 8,417	10,482 (1,008) 0 (1,029)
			8,445
			1,200 11,346 (4,101) 8,445

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

21. Other Provisions

1. Other Provisions
Balance at 1 April Provisions made during the year Provisions used during the year Balance at 31 March	2025 £’000s	2024 £’000s
	203 203 - 406	221 - (18) 203

The provisions relate to expected future dilapidations works required on specific leasehold properties upon expiry of their leases.

22. Defined Pension Benefit Liability

Papworth Trust participates in the Social Housing Pension Scheme (the Scheme), a multi-employer scheme which provides benefits to some 500 non-associated employers. The Scheme is a defined benefit scheme in the UK.

The Scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The last completed triennial valuation of the scheme for funding purposes was carried out as at 30 September 2023. This valuation revealed a deficit of £693m. A Recovery Plan has been put in place with the aim of removing this deficit by 31 March 2028.

The Scheme is classified as a 'last man standing arrangement'. Therefore, the trust is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the Scheme. Participating employers are legally required to meet their share of the Scheme deficit on an annuity purchase basis on withdrawal from the Scheme.

For accounting purposes, a valuation of the scheme is carried out with an effective date of 30 September each year. The liability figures from this valuation are rolled forward for accounting year-ends from the following 31 March to 28 February inclusive.

The latest accounting valuation was carried out with an effective date of 30 September 2024. The liability figures from this valuation were rolled forward for accounting year-ends from the following 31 March 2025 to 28 February 2026 inclusive.

The liabilities are compared, at the relevant accounting date, with the company’s fair share of the Scheme’s total assets to calculate the company’s net deficit or surplus.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Present Values of Defined Benefit Obligation, Fair Value of Assets and Defined Benefit Liability

Liability
Fair value of plan assets Present value of defined benefit obligation Defined benefit (liability) to be recognised	31 March 2025 £’000s	31 March 2024 £’000s
	12,282 (14,182) (1,900)	12,614 (15,479)
		(2,865)

Reconciliation of Opening and Closing Balances of the Defined Benefit Obligation

Defined benefit obligation at 1 April Expenses Interest expense Actuarial losses / (gains) due to scheme experience Actuarial (gains) / losses due to changes in demographic assumptions Actuarial (gains) / losses due to changes in financial assumptions Benefits and expenses paid Defined benefit obligation at 31 March	31 March 2025 £’000s	31 March 2024 £’000s
	15,479 24 745 629 - (2,061) (634) 14,182	15,566 21 748 (146) (171) (165) (374)
		15,479

Reconciliation of Opening and Closing Balances of the Fair Value of Plan Assets

Fair value of plan assets at 1 April Interest income Experience on plan assets (excluding amounts included in interest income) - gain (loss) Contributions by employer Benefits paid and expenses Fair value of plan assets at 31 March	31 March 2025 £’000s	31 March 2024 £’000s
	12,614 622 (1,065) 745 (634) 12,282	12,904 634 (1,201) 651 (374)
		12,614

The actual return on the plan assets (including any changes in share of assets) over the period ended 31 March 2025 was £443,000 (2024: (£567,000)).

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The Papworth Trust

Report and Accounts for the year ended 31 March 2025

Defined Benefit Costs Recognised in Statement of Comprehensive Income (SoCI) 31 March 2025 £’000s 31 March 2024 £’000s Expenses 24 21 Net interest expense 123 114 Defined benefit costs to be recognised 147 135 Defined Benefit Costs Recognised in the Statement of Changes in Reserves 31 March 2025 £’000s 31 March 2024 £’000s Experience on plan assets (excluding amounts included in net interest cost) (1,065) (1,201) Experience gains and losses arising on the plan liabilities (629) 146 Effects of changes in the demographic assumptions underlying the present value of the defined benefit obligation - 171 Effects of changes in the financial assumptions underlying the present value of the defined benefit obligation 2,061 165 367 (719) Plan Assets 31 March 2025 31 March 2024 £’000s £’000s Global equity 1,376 1,257 Absolute return - 493 Distressed opportunities - 445 Credit relative value - 413 Alternative risk premia - 400 Liquid alternatives 2,277 - Fund of hedge funds - 163 Emerging markets debt - 738 Insurance- linked securities 38 65 Property 615 507 Infrastructure 2 1,274 Private equity 11 10 Real assets 1,470 - Private debt - 496 Opportunistic Illiquid credit - 493 Private credit 1,503 - Credit 470 -	Defined Benefit Costs Recognised in Statement of Comprehensive Income (SoCI) 31 March 2025 £’000s 31 March 2024 £’000s Expenses 24 21 Net interest expense 123 114 Defined benefit costs to be recognised 147 135 Defined Benefit Costs Recognised in the Statement of Changes in Reserves 31 March 2025 £’000s 31 March 2024 £’000s Experience on plan assets (excluding amounts included in net interest cost) (1,065) (1,201) Experience gains and losses arising on the plan liabilities (629) 146 Effects of changes in the demographic assumptions underlying the present value of the defined benefit obligation - 171 Effects of changes in the financial assumptions underlying the present value of the defined benefit obligation 2,061 165 367 (719) Plan Assets 31 March 2025 31 March 2024 £’000s £’000s Global equity 1,376 1,257 Absolute return - 493 Distressed opportunities - 445 Credit relative value - 413 Alternative risk premia - 400 Liquid alternatives 2,277 - Fund of hedge funds - 163 Emerging markets debt - 738 Insurance- linked securities 38 65 Property 615 507 Infrastructure 2 1,274 Private equity 11 10 Real assets 1,470 - Private debt - 496 Opportunistic Illiquid credit - 493 Private credit 1,503 - Credit 470 -	Defined Benefit Costs Recognised in Statement of Comprehensive Income (SoCI) 31 March 2025 £’000s 31 March 2024 £’000s Expenses 24 21 Net interest expense 123 114 Defined benefit costs to be recognised 147 135 Defined Benefit Costs Recognised in the Statement of Changes in Reserves 31 March 2025 £’000s 31 March 2024 £’000s Experience on plan assets (excluding amounts included in net interest cost) (1,065) (1,201) Experience gains and losses arising on the plan liabilities (629) 146 Effects of changes in the demographic assumptions underlying the present value of the defined benefit obligation - 171 Effects of changes in the financial assumptions underlying the present value of the defined benefit obligation 2,061 165 367 (719) Plan Assets 31 March 2025 31 March 2024 £’000s £’000s Global equity 1,376 1,257 Absolute return - 493 Distressed opportunities - 445 Credit relative value - 413 Alternative risk premia - 400 Liquid alternatives 2,277 - Fund of hedge funds - 163 Emerging markets debt - 738 Insurance- linked securities 38 65 Property 615 507 Infrastructure 2 1,274 Private equity 11 10 Real assets 1,470 - Private debt - 496 Opportunistic Illiquid credit - 493 Private credit 1,503 - Credit 470 -
	(1,065) (629) - 2,061 367 31 March 2025 £’000s	(1,201) 146 171 165
		(719) 31 March 2024 £’000s 1,257 493 445 413 400 - 163 738 65 507 1,274 10 - 496 493 - -
	1,376 - - - - 2,277 - - 38 615 2 11 1,470 - - 1,503 470

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The Papworth Trust

Report and Accounts for the year ended 31 March 2025

Investment grade credit High Yield Cash Long lease property Secured income Liability driven investment Currency hedging Net current assets	Investment grade credit High Yield Cash Long lease property Secured income Liability driven investment Currency hedging Net current assets		378 - - 2 167 249 4 81 205 377 3,719 5,134 20 -5 27 22 12,282 12,614	378 - - 2 167 249 4 81 205 377 3,719 5,134 20 -5 27 22 12,282 12,614	378 - - 2 167 249 4 81 205 377 3,719 5,134 20 -5 27 22 12,282 12,614
Key Assumptions
Discount rate Inflation (RPI) Inflation (CPI) Salary Growth Allowance for commutation of pension for cash at retirement		31 March 2025 %per annum 31 March 2024 %per annum
		5.87 4.91 3.08 3.12 2.80 2.79 3.80 3.79 75% of maximum allowance 75% of maximum allowance
The mortality assumptions adopted at 31 March based on life expectancy at 65 years
are as follows:
Male retiring in 2023 Female retiring in 2023 Male retiring in 2043 Female retiring in 2043 23. Operating Leases Future minimum lease payments due are as Less than one year Between one and five years	31 March 2025 Life expectancy (years) 31 March 2024 Life expectancy (years)
	follows:			20.5 23.0 21.7 24.5 2025 £’000s	20.5 23.0 21.8 24.4 2024 £’000s
				109 212 321	65 46 111

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Future lease payments have increased due to entering into a new lease for premises to accommodate the relocation and expansion of our South Cambridgeshire day opportunities service.

24. Contingent Liabilities

Social Housing Grant

The Trust receives grants and loans from Homes England and other bodies. Under the terms of these grants/ loans, amounts may be repayable if the properties are disposed of or cease to be used for the purpose specified. The Trust therefore has a contingent liability for amounts in relation to grants which have been recognised in the Statement of Comprehensive Income through amortisation, plus any calculation of interest accrued on these amounts, which could become repayable if the property is disposed of or its use changes. Details of these grants are included within note 18 of these financial statements.

Housing grants may be recycled in which case the obligation is transferred to the recycled capital grant fund and held on the balance sheet as a current liability.

Social Housing Pension Scheme

The Trust has been notified by the Trustee of the Scheme that it has performed a review comparing the benefits provided to scheme members over recent years with the requirements of the Scheme documentation. Due to uncertainty as to the effect of some benefit changes, the Trustee has been advised by lawyers to seek clarification from the Court on potential changes to the pension liability. It is recognised that this could potentially impact the value of Scheme liabilities, but until the outcome of the ongoing Court process is known (which is currently expected to be late 2025), it is not possible to calculate the impact on the liabilities of this issue with any accuracy, particularly on an individual employer basis, for the purposes of the 31 March 2025 financial statements. Accordingly, no adjustment has been made in these financial statements in respect of this potential issue.

The Board is aware that the Court of Appeal has upheld the decision in the Virgin Media vs NTL Pension Trustees II Limited case. The decision puts into question the validity of any amendments made in respect of the rules of a contracted-out pension scheme between 6 April 1997 and 5 April 2016. The judgment means that some historic amendments affecting s.9(2B) rights could be void if the necessary actuarial confirmation under s.37 of the Pension Schemes Act 1993 was not obtained. No adjustment has been made in these financial statements in respect of this potential issue.

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The Papworth Trust

Report and Accounts for the year ended 31 March 2025

25. Reserves

----- Start of picture text -----
Restated
Movement in funds
31 March
£'000s 31 March 2024 Adjustment 2024 Income Expenditure Investment Other 31 March 2025
General Reserves 6,583 (161) 6,422 14,389 (14039) 186 747 7,705
Designated funds:
Fixed asset funds 15,266 - 15,266 3 (42) - - 15,227
Pension Liabilities 281 - 281 - - - - 281
Net Zero 848 - 848 - - - - 848
Development Fund 1,000 - 1,000 - - - - 1,000
Benefits Equalisation fund 200 - 200 - - - - 200
17,595 - 17,595 3 (42) - - 17,556
Restricted Funds
Capital fund 1,903 - 1,903 - (126) - - 1,777
Bourne House 725 - 725 - - - - 725
Other Housing funds 32 - 32 - - - - 32
First Steps to success 55 - 55 2 (14) - - 43
Garden Studios 47 - 47 - - - - 47
Wellbeing 41 - 41 - - - - 41
Other funds 32 - 32 131 (117) - - 46
2,835 - 2,835 133 (257) - - 2,711
Endowment funds 435 - 435 2 - - - 437
27,448 (161) 27,287 14,527 (14338) 186 747 28,409
----- End of picture text -----

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Analysis of net assets between funds

£'000s Fixed Assets Current Assets Liabilities due within 1 year Liabilities due after one year Pension Provisions for liabilities Total	General Reserves 8,555 4,510 (3,054) - (1,900) (406) 7,705	Designated Reserves 38,500 - (1,178) (19,766) - - 17,556	Restricted Reserves 2,506 205 - - - - 2,711	Endowment Fund 437 - - - - - 437	Total Reserves 49,998 4,715 (4,232) (19,766) (1,900) (406) 28,409

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

25. Reserves (continued)

Designated Funds

The fixed asset fund relates to the net value the Trust holds in fixed assets including associated liabilities such as secured loans and Housing Grants less any properties funded through restricted funding streams.

Income into the fund relates to amortisation of social housing grants. Expenditure relates to the annual depreciation charge made against unrestricted fixed assets. Transfers into the fixed asset fund related to capital investments made in fixed assets, payments made to reduce associated liabilities and other fixed asset movements.

The Pension liability fund relates to the remaining deficit liability payments required produced from the most recent full actuarial assessment, less the value of the creditor for pension liability shown on the balance sheet.

Other designated funds relate to funds identified against future liabilities, such as net-zero evaluations and assessments, and also to invest in the transformation of services to meet evolving demands and digitalisation requirements.

Restricted Funds

The capital fund relates to assets purchased using restricted funding and includes cash raised as part of capital appeals. Depreciation is expensed against those grants as they are utilised. Other Housing Funds represent restricted funds for various Housing Projects. These funds relate to previous local authority funding agreements for specific housing programmes. The First Steps Project is being run throughout our three key regions and aims to utilise community fundraising to provide an employment advisor in all three counties. To date funds have been raised for this project in Suffolk and Cambridgeshire. The Covid recovery appeal relates to funding received specifically to support our services due to disruption from the pandemic. These funds have supported additional staffing to reach those customers isolating in their own homes as well as provide essential equipment to customers and our staff, including tablet computers for a number of our service users. The garden studios fund represents funding received in support of our objective to develop garden studios at three of our centres to support customer-based activities. Other funds represent all other restricted funds for non-housing related projects, including the Trust’s Day Centres.

26. Related parties

During the year the Trust purchased services in the normal course of business from The Varrier-Jones Foundation, a charity whose objectives are to support the work of The Papworth Trust.

In the year ended 31 March 2025 services were purchased totalling £18,949 (2024: £11,615), these services were for the lease of two premises owned by the VarrierJones Foundation. The Trust made sales to The Varrier-Jones Foundation of £13,467 (2024: £54,531) for the provision of business support functions for the Foundation. At

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

31 March 2025 the amount due from The Varrier-Jones Foundation was £ 12,000 (2024: £nil). The amount due to The Varrier-Jones Foundation was £nil (2024: £nil)

The Varrier-Jones Foundation provides funding to the Trust. During the year, donations of £1,350,000 were received (2024: £1,431,000).

27. Prior Year Adjustment

Nature of the error

Whilst preparing the financial statements for the year ended 31 March 2025 for external audit it was discovered that the cash element of Endowment Fund assets had been double counted in the previous reporting periods. This error appears to date back to 2021.

Impact

The amount involved is £161,000; this sum being included in both fixed assets under Endowment Fund investments and in current assets as cash. This resulted in an overstatement of net assets and reserves of £161,000 in the previous reporting periods. The Trust considers this error to be material and has therefore made a prior period adjustment.

Restatement

The balance of endowment funds in reserves has remained relatively constant since prior to the apparent error, as expected. Therefore, the opening general reserves at 1 April 2023 (the beginning of the comparative period) have been reduced by £161,000 as has the cash and cash equivalents at that date, to reflect the correction.

Changes to the statement of financial position

As previously reported at 31 March 2024 £'000 Cash and cash equivalents 4,262 Net Assets 27,448 General reserves 6,583 Total Funds 27,448	Adjustment As restated at 31 March 2024 £'000 £'000 (161) 4,101 (161) 27,287 (161) 6,422 (161) 27,287

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Honorary personnel, Trustees and senior managers

PATRON

Her Royal Highness the Duchess of Gloucester, GCVO

VICE-PRESIDENTS

Mr A Dasgupta MBE Sir Hugh Duberly CBE LL Lady S Marshall Mrs J P B G Pearson Mrs J Womack Mr G R W Wright DL

Mrs M E Thomas CBE DL Mr R Hammond

CHAIR OF TRUSTEES

VICE-CHAIR OF TRUSTEES

Brian Stewart OBE Vanessa Stanislas

HON. TREASURER

Mike Anderson

OTHER TRUSTEES

Naomi Adie - appointed 7 November 2024 Grazina Berry Jane Carmichael Amy Carter Jack Hardiman Penny Metcalf – resigned 31 December 2024 Minesh Patel - appointed 7 November 2024 Adam Towle - appointed 7 November 2024 Andrew Williams

EXECUTIVE TEAM

Sarah Miller Chief Executive Officer Mark Blake Director of Finance and IT - resigned 27 September 2024 Chris Judson Director of Finance and IT - appointed 20 October 2024 Sarah Harvey Director of People and Culture Chris Bull Director of Housing and Property - appointed April 2024 Karryn Dixon Director of Operations – appointed April 2025

The Papworth Trust is a company limited by members’ guarantee of £1.00 each. The Trustees are the members of The Papworth Trust.

The register of members is maintained at the registered office.

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The Papworth Trust Report and Accounts for the year ended 31 March 2025

Principal Advisers and Papworth Trust information

COMPANY SECRETARY

Mark Blake (to 27 September 2024) Sarah Miller (27 September 2024 to 7 November 2024) Chris Judson (from 7 November 2024)

REGISTERED OFFICE

Saxongate Bradbury Place Hartford Road Huntingdon PE29 3RR Telephone: [phone] www.papworthtrust.org.uk [e-mail]

AUDITORS

RSM UK Audit LLP First Floor Platinum Building St John's Innovation Park Cowley Road Cambridge CB4 0DS

INVESTMENT MANAGERS

Sarasin & Partners Juxon House 100 St Pauls Churchyard London EC4M 8BU

SOLICITORS

Mishcon de Reya LLP 4 Station Square Cambridge CB1 2GE

BANKERS

Barclays Bank plc Level 12 1 Churchill Place Canary Wharf London E14 5HP Lloyds Bank PLC 10 Gresham Street London EC2V 7AE

National Westminster Bank Plc Lending Operations 250 Bishopsgate London EC2M 4AA

Triodos Bank UK Deanery Road Bristol BS1 5AS

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