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2024-12-31-accounts

Institution of Chemical Engineers Annual Report and Consolidated Financial Statements for the year ended 31 December 2024

Contents

Trustees’ Report 3
Statement of Trustees responsibilities 17
Independent Auditor's Report to the Trustees of the Institution of Chemical Engineers 18
Consolidated statement of financial activities for the year ended 31 December 2024 22
Charity statement of financial activities for the year ended 31 December 2024 23
Balance sheets at 31 December 2024 24
Consolidated cash flow statement for the year ended 31 December 2024 25
Charity cash flow statement for the year ended 31 December 2024 25
Notes forming part of the financial statements for the year ended 31 December 2024 26

Page 2 of 44

Trustees’ Report

The Board of Trustees is pleased to present its annual report together with the financial statements of the charity and its subsidiaries for the year ended 31 December 2024.

The financial statements comply with the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Reference and Administrative Details

The Institution of Chemical Engineers (IChemE) is a registered Charity in England and Wales (214379) and a charity registered in Scotland (SC039661).

Principal Office Davis Building, Railway Terrace, Rugby, Warwickshire, CV21 3HQ
Auditors RSM UK Audit LLP, 10thFloor, 103 Colmore Row, Birmingham, B3 3AG
Main Bankers NatWest Bank Plc, 300 Silbury Boulevard, Milton Keynes, MK9 2ZF
Solicitors Mills & Reeve, 100 Hills Road, Cambridge, CB2 1PH
Investment Managers Rathbone, 35 Gresham Street, London, EC2V 7QN
Ruffer LLP, 80 Victoria Street, London, SW1E 5JL

Trustees

Trustees
1 January 2024 – 11 June 2024 From 11 June 2024
Mr JN Hirst Mr ME Aspey
Prof IDL Bogle Mr JN Hirst
Mr ME Apsey Prof R Ocone
Dr DW Edwards Dr DW Edwards
Dr RJ Best Prof A Harper
Mrs A Hosey Mrs A Hosey
Ms AL Meldrum Prof J Cordiner
Mrs MD Isles-Ahite Mr P McLaughlin
Prof R Ocone Mt T Muchatuta
Mr DM Sutton Mrs H Ramsay
Mr RE Tucker Ms A Vargas-Colwill
Ms A Vargas-Colwill

Executive Team

Executive Team
Ms Y Baker Chief Executive
Ms J Downham Chief Operating Officer
Mrs R Baxter-Smith Director, Qualifications
Dr R Bibby Director, Member Experience & Professional Learning
Mrs C Flavell-While Director, Learned Society
Mr A Foster Director, Strategic Partnerships & Impact
Ms P Kerin Director, IChemE Safety Centre (to 31 January 2025)

Page 3 of 44

Objectives and Activities for the Public Benefit

The Institution of Chemical Engineers (IChemE) is an internationally recognised professional body committed to advancing the contribution of chemical engineering for the benefit of society.

We develop, maintain, and administer standards of professionalism, education, safety and best practice across all aspects of chemical and process engineering alongside attracting diverse talent into the discipline. We are committed to inspiring early-career professionals to develop their competence, so future-proofing the profession and ensuring that chemical engineers have the knowledge and skills to deliver economic benefit and wellbeing whilst keeping society safe from harm.

Applications for membership and professional registration are carefully assessed through a rigorous peer review process, thereby promoting high standards, competence, and professional development across our community.

We use the knowledge and expertise of our members to inform policy development and advance the practice of chemical engineering globally. We recognise and celebrate excellence in individuals and companies across the discipline.

The Objects of the Institution as set out in the Royal Charter are:

to sustainably benefit the global community by advancing the art, science, application, and professional practice of chemical engineering in all its branches.

The Powers vested in the Institution to achieve these objects are:

Page 4 of 44

Our strategy

Strategy 28+

IChemE’s Strategy 28+ sets out the Institution’s direction for the five-year period to 2028 and beyond with the aim of putting chemical and process engineering at the heart of a sustainable future, benefitting members, society and the environment.

To achieve our vision of engineering a sustainable future, two strategic goals have been identified supported by five enablers which will need to be underpinned by a responsive, adaptable, sustainable and high performing organisation, driven by purpose and impact.

IChemE will use its expertise, knowledge and reach to support a vibrant and thriving profession, and collaborate with others to serve society, as illustrated through our two strategic goals. Leading, connecting and supporting members and stakeholders will enable IChemE to build a strong community working together to make an impact and contribute positively to the UN’s Sustainable Development Goals.

Strategic Goal 1 Strategic Goal 1 Strategic Goal 1 Strategic Goal 2 Strategic Goal 2 Strategic Goal 2
Supporting a vibrant and thriving profession by
helping to:
▪
Contribute demonstrably to the UN
Sustainable Development Goals (SDGs)
▪
Attract a diverse range of talent into chemical
and process engineering
▪
Enable members, organisations and society to
achieve their potential
▪
Lead and support the positive impact chemical
and process engineering has on society		 Serving society by collaborating with others
through:
▪
Contributing to the development and sharing
of knowledge, skills and research and using
this to drive continuous improvement in
efficient and safe operations
▪
Increasing awareness and understanding of
how chemical and process engineering
contributes to society through championing
and promoting that contribution
Enabler 1 Enabler 2 Enabler 3 Enabler 4 Enabler 5
Engaging with
governments,
industry,
employers,
academia and the
public to further
understanding of
our profession and
its contribution to
society.		 Supporting and
developing
members and
potential members
through all stages
of their career
journeys. Helping
them to
understand and
realise the
benefits of
membership in a
global community.		 Be recognised as a
trusted, vibrant
professional body
using member
knowledge and
expertise to
materially impact
the major
challenges facing
society.		 Growing an active,
inclusive and
engaged
membership
encompassing the
diverse careers
and contribution
of our profession.		 Developing and
growing a viable
programme of
commercial
activities to
support the
Institution’s
charitable
purpose.

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Public Benefit

The Institution works to fulfil its goals globally, reflecting its broad and inclusive membership and the wider chemical engineering profession. It benefits the public and society by promoting high standards of engineering competence, professional ethics, safety, and sustainability, thus enabling industry and society to benefit from a competent profession and its practitioners.

The Trustees confirm that they have referred to the Charity Commission’s guidance on public benefit when reviewing the Institution’s aims and objectives and in planning its future activities.

Achievements and performance

The 2024 business plan was the first to fall within Strategy 28+ under the leadership of the new Chief Executive (appointed in April 2023). It identified three priority areas for the year ahead:

Across all areas of the Institution, IChemE achieved significant progress during 2024 – increasing membership, building its profile with policymakers, and making ourselves more welcoming and inclusive to those working in, and contributing to, chemical, biochemical and process engineering.

Sustainable membership growth

Over recent years to 2024, IChemE reported a modest but steady decline in member numbers. To retain our status as a world-class professional institution, and one of the four principal Professional Engineering Institutions, we have driven efforts to sustainably remediate this position. Our 2024 membership cycle showed 3.5% growth, including a modest 1% improvement in member retention.

Key contributors to this success were:

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Improved member experience

Members are at the heart of our Institution, giving their time and expertise to benefit society, the economy and the planet. We are committed to a member first approach, adapting to meet increasingly diverse member and sector needs and providing world-class support for our members, partners and the profession.

Across all areas of the institution, we have focused on equity of access for all members regardless of their career stage, geography, or situation, resulting in a modest 1% improvement in member retention during 2024 – we aim to increase this by a further 9% in 2025.

Key contributors to this success were:

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Making our voice heard

IChemE continues to leverage its member knowledge and expertise to position ourselves as the voice of chemical engineering in our target markets and spheres of influence. In addition to attracting new members, we are increasingly being recognised by key government committees and departments as a partner of choice who provides trusted expertise and evidence, ultimately influencing policy.

The dissemination of expertise is underpinned by engaging members in generating and sharing knowledge, both through Special Interest Groups and through the Institution’s academic journals.

To raise awareness amongst future talent pools, we have committed to impactful support for young people, parents, and teachers through our suite of DiscoverChemEng activities. This helps to achieve a better understanding of chemical engineering, how it impacts daily life, and the range of career opportunities it brings.

Key contributors to this success were:

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Plans for the future

Our 2025 business plan builds on the strong progress made over the last twelve months towards the delivery of Strategy 28+. During 2025, we will continue our focus on the three priority areas identified below:

Sustainable membership growth

Ambitious but achievable growth targets (3% to 5% per year) have been set out. The focus continues to be on sustainable growth – attracting new members into the Institution at all levels, ensuring they are then supported, engaged and choose to remain with us as their professional home of choice.

Improving member experience

We will continue to innovate with new, and continuously improving, products and services which attract and retain an increasing number and diversity of members.

Making our voice heard

Aligned to the UN Sustainability Goals, we will continue raising awareness of the pivotal and increasingly advanced role of chemical, biochemical and process engineering in society to government, policy makers and the public.

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Financial Review

The financial statements for the year ended 31 December 2024 are set out on pages 22 to 44.

The charity only financial results incorporate the results of the UK and its branch in Australia. The group financial statements also include the results of the Institution’s UK trading subsidiary, IChemE Ltd, and the charitable activities of the Institution's subsidiaries in Malaysia and New Zealand.

Unrestricted funds

Total group income for the year was £10,794,000 (2023: £9,850,000) . The principal sources of income were from:

Total group expenditure for the year was £9,828,000 (2023: £8,783,000) . Expenditure has increased as a direct result of an increase in the training course and events activity. In addition, a new Member Experience and Professional Learning function has been established to improve member engagement and support.

Overall net income before gains on investment funds, was £966,000 (2023: £1,067,000). Unrealised gains on investments for the year were £253,000 (2023: £39,000) resulting in an overall net income of £1,219,000 (2023: £1,106,000) .

After the other recognised gains or losses; actuarial gains on the defined benefit pension scheme of £963,000 (2023: losses £293,000); as well as exchange losses on the retranslation of the balance sheets of the foreign branches and subsidiaries of £39,000 (2023: £44,000), the unrestricted fund balance at year end increased by £2,143,000 to £7,722,000 (2023: £5,579,000) .

The Institution’s wholly owned trading subsidiary, IChemE Ltd, achieved an operating profit of £72,000 (2023: £71,000) , which has been gift aided to the Institution. The results of the UK trading subsidiary and of the subsidiary undertakings in Malaysia and New Zealand are set out in note 2 to the financial statements.

Restricted funds

Restricted funds are income funds that can only be used for specific purposes which have been specified by the donor, or by the terms applied to an appeal for funds.

The net expenditure on restricted funds for 2024 was £141,000 (2023: £138,000 ). The total restricted fund balance at year end was £790,000 (2023: £931,000) .

The movement in restricted income funds is set out in note 14 to the financial statements.

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Investment policy and powers

Investments are held in accordance with the By-laws of the Institution. The Trustees have the power to invest all monies not immediately required for operational activities as it sees fit and to appoint advisers to make such investments on its behalf.

IChemE continues to use the services of an independent financial advisor to review and monitor the investment portfolio. The performance of the funds and ongoing investment strategy is formally reviewed by the Finance & HR Committee throughout the year.

The investment policy adopted by the Trustees is to achieve a target return of CPI + 3% over a 5-year rolling basis and over a rolling 3-year period to achieve a minimum return of CPI. The Institution’s investment objective remains to achieve long term capital growth with income.

The investment portfolio is split between Rathbones Investment Management Limited and Ruffer LLP. Both organisations are working to this investment policy and apply their individual judgement for asset allocation and investment selection to achieve the investment objective.

The Trustees have considered their approach to ESG (Environmental, Social and Governance) within the investment strategy. The approach currently taken is not to specifically exclude any assets or investments, or to hold dedicated ESG investment funds. Both Rathbones and Ruffer consider ESG factors when evaluating investments and have their own ESG scoring mechanism for companies included within the investment portfolio. They work to improve ESG within those companies through active engagement and influence.

During the year, the investment funds received £59,000 (2023: £68,000) in interest and dividends, and incurred management fees of £37,000 (2023: £50,000). The funds generated unrealised gains of £253,000 (2023: £39,000). The total return for the year, taking into account all income, management fees and market value movements, was an increase of 4.5% (2023: 1.0%) .

No disinvestments were made from the funds in 2024 (2023: £nil) . All income received during the year has been re-invested.

The Institution’s investments are recorded at market value. The market value of the investment portfolio at 31 December 2024 was £6,670,000 (2023: £6,385,000). The gains and losses on revaluation have been recognised in the Statement of Financial Activities.

Reserves policy

The Institution holds two types of reserves – unrestricted and restricted. The group reserves additionally includes unrestricted reserves held in subsidiary companies.

Free reserves are calculated as the unrestricted general fund balance excluding any tangible fixed assets. These are the funds freely available to spend on the Institution’s charitable activities and therefore also exclude both restricted funds and funds that have been designated by the Board of Trustees.

For the calculation of free reserves, the Board of Trustees has also excluded the FRS 102 defined benefit pension valuation included on the balance sheet, replacing it in the calculation with a consideration of the risk of future contributions outside normal operating surpluses being required. This approach reflects the risk of future cash outflows rather than just a consideration of the annual actuarial value of the liability.

The Finance and HR Committee reviews the Institution’s reserves policy and level of free reserves held on an annual basis. The Committee considers all relevant information including the five-year budget and business plan, the strategic plan and the risks identified in the risk register.

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During 2024, the Board of Trustees, on the recommendation of the Finance & HR Committee, updated the reserves policy and target free reserves level to be more risk focussed and flexible to changes in the Institution’s operations. The review took into account the ambitious growth targets and cost base of the Institution predicted over the next five years, which will bring an increased risk associated with variances to budget and a shortfall in income in any given year.

The revised target level adopted by the Trustees is that a range of between £6m-£8m is held in free reserves. The rationale for holding this level of reserves is:

The target level of reserves will be reviewed annually and where appropriate updated to reflect changes in risk and operational needs.

The level of unrestricted free reserves available at the year-end was £8,364,000 (2023: £7,613,000) , which is in line with the reserves policy. This excludes tangible fixed assets of £795,000 (2023: £608,000) , the designated fund balance of £350,000 (2023: £350,000) , the restricted fund balance of £790,000 (2023: £931,000) , and the pension valuation of £1,787,000 (2023: £2,992,000) as it represents the pension liability recorded in the group and charity balance sheet and is calculated annually for accounting purposes under FRS102. The liability does not result in any immediate requirement to pay this amount to the pension scheme, and the Institution aims to meet the ongoing cash contributions into the Scheme through budgeted income.

The Trustees have considered the level of reserves held at year end and believe they are sufficient to protect IChemE from serious disruption to its work.

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Structure, Governance and Management

Governing Document

The Institution of Chemical Engineers was founded in 1922 and incorporated by Royal Charter in 1957.

The governing documents under which the Institution operates comprise the Royal Charter, as amended, the By-laws of the Institution, and Regulations made from time to time by the Board of Trustees, which is the Institution’s governing body.

The Institution is a registered charity in England & Wales and a charity registered in Scotland.

Appointment of Trustees

The Trustees are elected in accordance with the Royal Charter and By-laws and the Board comprises the following roles:

The President, Deputy President and Immediate Past President are elected annually. Those eligible for election as President shall be the Deputy President or, if in the opinion of the Board of Trustees special circumstances exist, a Fellow. The person eligible as Immediate Past President shall be the retiring President.

The Treasurer, Vice-Presidents, ordinary members, and regional members of the Board shall be elected for a term not exceeding three years nor less than one year.

Trustee induction and training

All new Trustees receive an induction pack including the By-laws and Regulations of the Institution, recent minutes of meetings, and the relevant Charity Commission publications outlining their roles and responsibilities as a Charity Trustee. An induction programme takes place annually for all new Trustees, also available for existing Trustees, to get an oversight of the structure of the Institution and its activities.

Trustees have a legal duty to avoid conflicts of interest so that they can focus exclusively on the best interests of the Institution. The Institution maintains a register of interests, which is updated annually or when any changes are reported by Trustees. Procedures are in place for managing conflicts of interest that may arise during Trustee meetings.

Institution structure

The Board of Trustees is the governing body of the Institution and has ultimate responsibility for providing strategic direction and for ensuring that the charitable objects set out in the governing document are met. The Board of Trustees meets formally at least four times a year to review performance against these objects.

Congress is the representative advisory body serving as a link between the Institution’s members and the Board of Trustees. Congress consists of up to forty-one members, all members of the Institution, who are nominated and elected by their peers from a membership or geographical college.

Page 13 of 44

The Congress Steering Group is responsible for the oversight and facilitation of the conduct of Congress and the engagement of Congress members. The Steering Group consists of the Congress Chair, Vice-Chair, the Chief Executive, and a designated Trustee lead.

Congress holds up to three sessions a year, which are held as online open forums each lasting up to thirty days. The agenda for the sessions is determined by the Chair of Congress in consultation with the Congress Steering Group.

The Chief Executive is appointed by the Board of Trustees and has delegated authority for the day-to-day operation of the Institution, its branches, and subsidiary undertakings. The Chief Executive is supported by the Senior Management Team.

The Board of Trustees are the registered Trustees of IChemE’s branch in Australia, which is registered with the Australian Charities and Not-for-profits Commission. The branch has a National Board to advise the Trustees on how IChemE’s strategy can be delivered locally.

The Institution’s operations in Malaysia and New Zealand each have their own National Boards operating under delegated authority from the Board of Trustees and in compliance with local regulatory requirements.

The Institution has a wholly owned trading subsidiary in the UK, IChemE Ltd, established to operate the sale of advertising space in the Institution’s journals and publications. The company gift aids its taxable profits to the Institution.

In addition to Congress and the local National Boards, there are a number of standing Committees operating under delegated authority from the Board of Trustees which have been established to facilitate the efficient operation of the charity. These consist of:

The Scheme of Delegation, which is reviewed annually, sets out the powers delegated to these Committees.

The Institution also has an extensive network of National, Regional and Special Interest Groups enabling members to get involved in the Institution’s activities. Each group has its own committee, made up of members of the Institution, who meet regularly throughout the year. The activities conducted by the Groups include technical meetings, continuing professional development, school liaison visits, and networking events.

Staff participation is encouraged at all levels in the making of decisions which affect the Institution’s management and future development. Regular meetings are held to update all staff on the Institution’s activities and other emerging issues.

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Volunteers

The voluntary effort and contribution on the part of our members is at the heart of the Institution’s success and their expertise is vital to enable IChemE to deliver across a number of activities including the professional review process by which members are assessed for qualification to membership; representation on the Board of Trustees, Congress and aligned committees; acting as STEM ambassadors and career advocates to young people, parents and other influencers; and contributing to technical knowledge and insights that benefits the profession and brings public value.

All volunteers give their time on a voluntary basis.

Fundraising

The Institution does not actively undertake any fundraising activities from the general public or use the services of professional fundraisers or commercial participators.

The Institution is not bound by any regulatory scheme and is not subject to any voluntary code of practice regulating fundraising.

No complaints have been received by the Institution in relation to fundraising activities.

Remuneration policy for key management personnel

The Institution considers its key management personnel to comprise the Board of Trustees, the Chief Executive, and the Senior Management Team. All Trustees give their time freely and no Trustee received remuneration in the year. Details of Trustees’ expenses and related party transactions can be found in notes 8 and 16 to the accounts.

The pay of the Chief Executive and Senior Management Team is set and monitored by the Finance & HR Committee.

The Institution is committed to ensuring that it pays its staff fairly and in a way which ensures it attracts and retains appropriately qualified staff to lead, manage, support and deliver the Institution’s charitable objects.

Professional advice is sought where appropriate to establish appropriate benchmark levels for each position or group of positions within the organisation structure. These benchmark rates are reviewed regularly. When inflation is relatively low this review may not be annual and so an interim inflationary adjustment to the benchmark salary level may be made.

The Institution does not employ interns without pay and it complies with the living wage for all staff.

In addition to financial remuneration, the Institution seeks to provide staff with a supportive working environment and wherever possible works to promote the wellbeing of staff and satisfactory work-life balance.

Risk management

The Trustees are responsible for overseeing risk management across the organisation and for ensuring that a sound system of internal control is maintained that supports the achievement of IChemE’s strategic aims and objectives. The day-to-day management of risk is delegated to the Chief Executive and the Senior Management Team. The Audit & Risk Committee is responsible for assessing the effectiveness of risk management and internal controls across the organisation.

Page 15 of 44

A strategic risk register is maintained by the Senior Management Team and is updated on a regular basis. The Audit & Risk Committee regularly reviews the risk register, concentrating on the highest scoring risks and their control and mitigation measures.

The business planning and budgeting cycle is used to set objectives for the following five years, agree action plans, allocate resources, and to identify new risks or changes in existing risks or their control measures. Progress towards meeting the objectives and annual budget is monitored on a monthly basis by the Senior Management Team.

The Trustees receive an annual report highlighting the top strategic risks. Significant changes in risk items will also be reported to the Trustees as required.

The highest rated strategic risks in 2024 which could impact the delivery of the strategy are listed below.

Risk Control and Mitigation Measures
Continuity of membership revenue Renewed focus on recruiting members at all grades and
demonstrating value proposition of membership through
increased engagement. Raising awareness of routes and careers in
sector through substantial growth of DiscoverChemEng activities.
Concerted focus on simplifying routes into membership.
Continuity of commercial revenue Formal and informal market research/customer feedback analysis
to ensure product offering meets requirements; competitor
analysis; widening of trainer pool in key markets. Continued
monitoring of academic publishing model to ensure the journal’s
model remains suitably robust. Regular meetings with partners
and other key suppliers.
Failure to effectively articulate
IChemE’s voice and impact for
members and on society		 Increased engagement with government and other bodies,
working towards becoming a trusted advisor to governments,
policymakers, and the public. Introduction of roundtable
discussions with other PEIs, regulatory bodies, industry, and
academia on topics where chemical and process engineering can
support public policy and awareness.
Compliance and risk management Regular review of our operations to ensure governance structure
and oversight remains appropriate. Scheme of Delegation
established clearly setting out decisions delegated to committees
of the Board of Trustees and the Executive team. Use advisors as
necessary in the UK and at a local level for overseas branches and
subsidiaries – including employment law and health & safety.
Refresh and rollout of key policies and guidance for staff and
volunteers i.e. GDPR, cyber security, safeguarding etc.
Failure to innovate and exploit
opportunities		 Continuous review and updating of member benefits to ensure
relevance, perceived value and futureproofing. Revised approach
to partnerships to a more flexible model to meet the needs of a
more diverse range of partners.

The Trustees are satisfied that reasonable steps are being taken to limit the probability and the impact of risk.

Page 16 of 44

Statement of Trustees responsibilities

The Trustees are responsible for preparing the trustees' annual report and the financial statements in accordance with applicable law and regulations.

Charity law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under Charity 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 group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group and charity for that period.

In preparing those financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity’s website.

Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by the Board of Trustees on 15 April 2025 and signed on its behalf by:

Mr M Apsey President

Dr DW Edwards Honorary Treasurer

Davis Building, 165-189 Railway Terrace, Rugby, CV21 3HQ

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Independent Auditor's Report to the Trustees of the Institution of Chemical Engineers

Opinion

We have audited the financial statements of the Institution of Chemical Engineers (the ‘parent charity’) and its subsidiaries (the ‘group’) for the year ended 31 December 2024 which comprise the Consolidated and Charity Statement of Financial Activities, the Group and Charity Balance Sheets, the Consolidated and Charity Cash Flow Statements 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:

Basis for opinion

We have been appointed auditors under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under section 151 of the Charities Act 2011 and report in accordance with regulations made under those Acts.

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 group and parent charity 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 group’s or parent charity’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.

Page 18 of 44

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

Other information

The 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, 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out on page 17 the trustees 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 group and parent charity’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 group or parent charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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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.

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:

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, Charities SORP (FRS102), Charities and Trustee Investment (Scotland) Act 2005, regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended), the Charities Act 2011, the parent charity’s governing document and tax legislation. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report, remaining alert to new or unusual transactions which may not be in accordance with the governing documents, inspecting correspondence with local tax authorities and evaluating advice received from internal/external advisors.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to General Data Protection Regulation (GDPR). We performed audit procedures to inquire of management and those charged with governance whether the group/charity is in compliance with these laws and regulations and read minutes.

The audit engagement team identified the risks of management override of controls and income recognition 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 significant, unusual transactions and transactions entered into outside the normal course of business, challenging judgments and estimates and testing of income transactions around the period end.

Page 20 of 44

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, and regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s trustees 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 charity and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

RSM UK Audit LLP

Statutory Auditor 103 Colmore Row Birmingham B3 3AG

Date: 8 May 2025

RSM UK Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

Page 21 of 44

Consolidated statement of financial activities for the year ended 31 December 2024

Note
INCOME
Charitable activities:
3
Qualifications & Membership
Knowledge, Training, Promotion & Events
Other trading activities:
Trading operations
2
Investments
4
TOTAL INCOME
EXPENDITURE ON
Raising funds:
Trading operations
2
Investment management costs
Charitable activities:
5
Qualifications & Membership
Knowledge, Training, Promotion & Events
TOTAL EXPENDITURE
Net gains on investments
10
NET INCOME / (EXPENDITURE)
Transfer between funds:
14
Other recognised gains / (losses):
Actuarial gains / (losses) on defined benefit pension
schemes
20
Exchange (losses)arising from retranslation of
foreign branches & subsidiaries
NET MOVEMENT IN FUNDS
Fund balances brought forward at 1 January
Fund balances carried forward at 31 December		 Unrestricted
Funds
Restricted
Funds
Total
2024
Unrestricted
Funds
Restricted
Funds
Total
2023
£000
£000
£000
£000
£000
£000
4,645
-
4,645
4,565
-
4,565
5,964
21
5,985
5,088
20
5,108
126
-
126
129
-
129
59
-
59
68
-
68
10,794
21
10,815
9,850
20
9,870
(54)
-
(54)
(58)
-
(58)
(37)
-
(37)
(50)
-
(50)
(4,383)
-
(4,383)
(3,573)
-
(3,573)
(5,354)
(162)
(5,516)
(5,102)
(158)
(5,260)
(9,828)
(162)
(9,990)
(8,783)
(158)
(8,941)
253
-
253
39
-
39
1,219
(141)
1,078
1,106
(138)
968
-
-
-
-
-
-
963
-
963
(293)
-
(293)
(39)
-
(39)
(44)
-
(44)
2,143
(141)
2,002
769
(138)
631
5,579
931
6,510
4,810
1,069
5,879
7,722
790
8,512
5,579
931
6,510

The results relate to the continuing activities of the Institution. The group has no recognised gains or losses other than the net movement in funds for the year.

The notes on pages 26 to 44 form part of these financial statements.

Page 22 of 44

Charity statement of financial activities for the year ended 31 December 2024

Note
INCOME
Gift aid from subsidiary company
2
Charitable activities:
3
Qualifications & Membership
Knowledge, Training, Promotion & Events
Investments
4
TOTAL INCOME
EXPENDITURE ON
Raising funds:
Investment management costs
Charitable activities:
5
Qualifications & Membership
Knowledge, Training, Promotion & Events
TOTAL EXPENDITURE
Net gains / (losses) on investments
10
NET INCOME / (EXPENDITURE)
Transfer between funds:
14
Other recognised (losses) / gains:
Actuarial gains / (losses) on defined benefit pension
schemes
20
Exchange (losses) arising from retranslation of
foreign branches & subsidiaries
NET MOVEMENT IN FUNDS
Fund balances brought forward at 1 January
Fund balances carried forward at 31 December		 Unrestricted
Funds
Restricted
Funds
Total
2024
Unrestricted
Funds
Restricted
Funds
Total
2023
£000
£000
£000
£000
£000
£000
72
-
72
71
-
71
4,645
-
4,645
4,557
-
4,557
5,930
21
5,951
4,895
20
4,915
59
-
59
68
-
68
10,706
21
10,727
9,591
20
9,611
(37)
-
(37)
(50)
-
(50)
(4,335)
-
(4,335)
(3,536)
-
(3,536)
(5,297)
(162)
(5,459)
(4,888)
(158)
(5,046)
(9,669)
(162)
(9,831)
(8,474)
(158)
(8,632)
253
-
253
39
-
39
1,290
(141)
1,149
1,156
(138)
1,018
-
-
-
-
-
-
963
-
963
(293)
-
(293)
(29)
-
(29)
(39)
-
(39)
2,224
(141)
2,083
824
(138)
686
5,530
931
6,461
4,706
1,069
5,775
7,754
790
8,544
5,530
931
6,461

Page 23 of 44

Balance sheets at 31 December 2024

Note
Fixed assets
Tangible assets
9
Investments
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: Amounts falling due within one year
12
Net current assets
Total net assets before pension deficit
Pension scheme funding deficit
20
Total net assets after pension deficit
Income Funds
Unrestricted funds
General funds
Designated funds
15
Pension reserve
20
Restricted funds
14
Total funds		 Group
Charity
2024
2023
2024
2023
£000
£000
£000
£000
795
608
795
608
6,670
6,385
6,670
6,385
7,465
6,993
7,465
6,993
1,544
1,224
1,747
1,368
4,411
4,620
4,184
4,370
5,955
5,844
5,931
5,738
(3,121)
(3,335)
(3,065)
(3,278)
2,834
2,509
2,866
2,460
10,299
9,502
10,331
9,453
(1,787)
(2,992)
(1,787)
(2,992)
8,512
6,510
8,544
6,461
9,159
8,221
9,191
8,172
350
350
350
350
(1,787)
(2,992)
(1,787)
(2,992)
7,722
5,579
7,754
5,530
790
931
790
931
8,512
6,510
8,544
6,461

These financial statements were approved by the Board of Trustees and authorised for issue on 15 April 2025.

Mr M Apsey

Page 24 of 44

Consolidated cash flow statement for the year ended 31 December 2024

Note
Cash flows from operating activities
18
Cash flows from investing activities:
Dividends and interest from investments
4
Purchase of fixed asset investments
10
Proceeds from sale of investments
10
Purchase of property, plant & equipment
9
Net cash (used in) investing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the start of the reporting period
Change in cash and cash equivalents due to exchange rate movements
Cash and cash equivalents at the end of the reporting period		 2024
2023
£000
£000
185
1,414
59
68
(1,473)
(3,135)
1,414
3,067
(288)
(39)
(288)
(39)
(103)
1,375
4,620
3,320
(106)
(75)
4,411
4,620

Charity cash flow statement for the year ended 31 December 2024

Note
Cash flows from operating activities
18
Cash flows from investing activities:
Dividends and interest from investments
4
Purchase of fixed asset investments
10
Proceeds from sale of investments
10
Purchase of property, plant & equipment
9
Net cash (used in) investing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the start of the reporting period
Change in cash and cash equivalents due to exchange rate movements
Cash and cash equivalents at the end of the reporting period		 2024
2023
£000
£000
165
1,511
59
68
(1,473)
(3,135)
1,414
3,067
(288)
(39)
(288)
(39)
(123)
1,472
4,370
2,933
(63)
(35)
4,184
4,370

Page 25 of 44

Notes forming part of the financial statements for the year ended 31 December 2024

1. Accounting policies

Basis of preparation

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) – (Charities SORP (FRS 102)); and the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

The financial statements are presented in Sterling (£) and are rounded to the nearest thousand pounds.

The Institution meets the definition of a public benefit entity as defined by FRS 102.

Preparation of the accounts on a going concern basis

The Trustees have assessed whether the use of a going concern basis is appropriate when preparing these financial statements and have concluded that there are no material uncertainties about the Institution’s ability to continue as a going concern, and that the Institution has sufficient cash reserves to continue to meet its liabilities as they fall due.

In arriving at this decision, the Trustees have taken into account: the group’s financial performance during 2024; the budgets and cashflow predictions for the next five-year period; and the level of free reserves held at year-end.

The principal accounting policies adopted by the Institution are set out below:

Basis of consolidation

The financial statements consolidate the financial statements of the UK and Australian branch, its wholly owned UK trading subsidiary IChemE Ltd and its not-for-profit subsidiaries IChemE in Malaysia, IChemE in New Zealand and IChemE in Singapore Ltd, by virtue of the control exercised by the charity. The results of the subsidiaries are consolidated on a line-by-line basis. The results of the subsidiaries are summarised in note 2 of the financial statements.

Income

Income is recognised when the Institution has entitlement to the income, any performance conditions attached to the income have been met, it is probable that the income will be received, and the amount can be measured reliably.

Donations are recognised when the Institution has entitlement to the funds, it is probable that the income will be received, and the amount can be measured reliably. When donors specify that donations are to be used for a specific purpose, they will be included in income as a restricted fund when receivable.

Page 26 of 44

1. Accounting policies (continued)

Legacy gifts are recognised on a case-by-case basis following the granting of probate when the administrator of the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity.

Subscriptions and events income are accounted for in the year to which they apply. Subscription income received during the year that relates to a subsequent financial accounting period is carried forward as a creditor in the balance sheet and shown as deferred income.

Interest and dividends on investments are accounted for when receivable.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal and constructive obligation committing the Institution to the expenditure, it is probable that settlement will be required, and the amount of the obligation can be measured reliably.

All expenditure is included in the statement of financial activities on an accruals basis.

Expenditure is recorded net of value added tax unless irrecoverable.

All expenditure, including support costs, are allocated or apportioned to the applicable expenditure headings in the statement of financial activities.

Allocation of support and governance costs

Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice.

Governance and support costs relating to charitable activities have been apportioned on the basis of staff costs associated with each activity. The allocation of support and governance costs is analysed in note 6.

Operating leases

Operating lease rentals are charged to the statement of financial activities on a straight-line basis over the terms of the lease.

Tangible fixed assets and depreciation

Fixed assets are recorded at cost or valuation, net of depreciation and any provision for impairment. Expenditure on individual fixed assets costing over £2,500 is capitalised.

Depreciation is charged on a straight-line basis to write off the cost or valuation less the estimated residual value of assets over their estimated useful lives as at the following rates:

Freehold buildings - 5%
Office equipment - 15%
Computer software - 33%

Freehold land is not depreciated.

Page 27 of 44

1. Accounting policies (continued)

Investments

Fixed asset investments are initially recorded at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing bid price. The statement of financial activities includes the net gains or losses arising on revaluation and disposals throughout the year.

Realised gains or losses on investments are calculated as the difference between the sales proceeds and their fair value at 31 December (or historical cost if purchased within the year). Unrealised gains or losses are derived from the movement in fair values during the year.

The Institution does not acquire put options, derivatives or other complex financial instruments.

Fund accounting

The Institution has different types of funds which require separate disclosure. These are as follows:

Foreign exchange gains and losses

Foreign currency transactions are translated into sterling at the rates ruling when they occurred. Foreign currency monetary assets and liabilities are translated at the rates ruling at the balance sheet dates. Any differences are taken through the statement of financial activities.

Pension costs

Employees of the charity are entitled to join a group personal pension plan. This is a defined contribution pension scheme with assets held in the names of the individual members. The charity contribution is restricted to the contributions disclosed in note 20. The costs of the defined contribution scheme are included within staff costs and are charged to the statement of financial activities in the year in which they become payable.

The charity also operates a defined benefit pension scheme. The scheme was closed to new members and future service accruals in 2006. The assets of the scheme are held separately from those of the Institution in an independently administered fund.

The difference between the fair value of the assets held in the defined benefit pension scheme and the scheme’s liabilities measured on an actuarial basis using the projected unit method are recognised in the balance sheet as a pension asset or liability as appropriate. Changes in the defined pension scheme asset or liability arising from factors other than cash contribution by the Institution are charged to the Statement of Financial Activities in accordance with FRS 102.

Page 28 of 44

1. Accounting policies (continued)

Provisions

Provisions are recognised when the Institution has a present obligation, legal or constructive, as a result of a past event, it is probable that the Institution will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

Financial instruments

Financial assets, other than fixed asset investments, are initially measured at transaction price (including transaction costs) and subsequently held at cost, less any impairment.

Financial liabilities are classified according to the substance of the financial instrument’s contractual obligations, rather than the financial instrument’s legal form. Financial liabilities are initially measured at transaction price (including transaction costs) and subsequently held at amortised cost.

Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from those estimates and underlying assumptions are continually reviewed.

The following are critical judgements that the Trustees have made in the process of applying the Institution's accounting policies:

Other key sources of estimation uncertainty:

Page 29 of 44

2. Results of subsidiaries

The summary financial performance and position of the subsidiaries is shown below:

Income
Expenditure
Net income / (expenditure)
Amount gift aided to the Institution
Retained in subsidiary
Balance sheets
Fixed assets
Current assets
Current liabilities
Net current assets
Total net assets		 IChemE
Ltd
IChemE in
New Zealand
IChemE
Malaysia
Sdn Bhd
2024
Total
2023
Total
£000
£000
£000
£000
£000
126
-
76
202
361
(54)
(31)
(116)
(201)
(339)		 IChemE
Ltd
IChemE in
New Zealand
IChemE
Malaysia
Sdn Bhd
2024
Total
2023
Total
£000
£000
£000
£000
£000
126
-
76
202
361
(54)
(31)
(116)
(201)
(339)
72
(31)
(40)
1
22
(72)
-
-
(72)
(71)
-
(31)
(40)
(71)
(49)
IChemE
Ltd
IChemE in
New Zealand
IChemE
Malaysia
Sdn Bhd
2024
Total
£000
£000
£000
£000
-
-
-
-

2023
Total

£000

-
153
106
27
286
(153)
(59)
(106)
(318)
283

(234)
-
47
(79)
(32)
49
-
47
(79)
(32)
49

IChemE Ltd (company number 2817128) is a company limited by shares, incorporated in the United Kingdom. IChemE in New Zealand (society number 980425) is an incorporated society in New Zealand. IChemE Malaysia Sdn Bhd (company number 1390908-U).

3. Analysis of income from charitable activities

Qualifications & Membership:
Membership subscription and accreditation fees
Knowledge, Training, Promotion & Events:
Journals & publications
Knowledge communities
Conferences, seminars & events
Provision of training
Other income
Subscriptions to technical centres (restricted funds)		 Group
Charity
2024
2023
2024
2023
£000
£000
£000
£000
4,645
4,560
4,645
4,552
1,795
1,623
1,795
1,623
423
380
409
358
840
693
827
542
2,898
2,379
2,891
2,358
8
18
8
18
21
20
21
20
10,630
9,673
10,596
9,471

Page 30 of 44

4. Investment income

Group and Charity

Group and Charity
Interest receivable
Dividends receivable		 2024
2023
£000
£000
7
6
52
62
59
68

5. Analysis of expenditure on charitable activities

Group
Qualifications & Membership
Knowledge, Training, Promotion & Events		 Direct activity
costs
Support
costs
2024
Total
2023
Total
£000
£000
£000
£000
2,614
1,769
4,383
3,573
3,987
1,529
5,516
5,260
6,601
3,298
9,899
8,833

Expenditure on charitable activities was £9,899,000 (2023: £8,833,000) of which £9,737,000 was unrestricted (2023: £8,675,000 ) and £162,000 was restricted (2023: £158,000) .

Charity
Qualifications & Membership
Knowledge, Training, Promotion & Events		 Direct activity
costs
Support
costs
2024
Total
2023
Total
£000
£000
£000
£000
2,612
1,723
4,335
3,536
3,945
1,514
5,459
5,046
6,557
3,237
9,794
8,582

Expenditure on charitable activities was £9,794,000 (2023: £8,582,000) of which £9,632,000 was unrestricted (2023: £8,424,000 ) and £162,000 was restricted (2023: £158,000) .

Net income for the year is stated after charging / (crediting):

Group Charity
2024 2023 2024 2023
£000 £000 £000 £000
Depreciation 101 78 101 78
Operating leases:
Plant and machinery 6 3 6 3
Land and buildings 57 55 52 51
Exchange rate differences (36) (30) (31) (40)

Page 31 of 44

6. Analysis of governance and support costs

Included within expenditure on charitable activities are governance and support costs amounting to £3,299,000 (2023: £2,772,000) . These are analysed as:

Staff costs
Finance
IT
Facilities & HR
Management & Governance		 Group
Charity
2024
2023
2024
2023
£000
£000
£000
£000
1,179
996
1,138
951
430
363
426
356
551
588
549
586
958
654
948
648
181
171
175
166
3,299
2,772
3,236
2,707

The governance and support costs have been apportioned across the charitable activities on the basis of staff time associated with each activity. The charge to each activity was as follows:

Qualifications & Membership
Knowledge, Training, Promotion & Events		 Group
Charity
2024
2023
2024
2023
£000
£000
£000
£000
1,769
1,384
1,723
1,349
1,530
1,388
1,514
1,358
3,299
2,772
3,237
2,707

Analysis of governance costs:

Legal and Professional Fees
External Audit
AGM & EGM Expenses
Electoral Services		 Group
Charity
2024
2023
2024
2023
£000
£000
£000
£000
61
27
59
26
47
44
40
37
9
6
8
6
4
2
4
2
121
79
111
71

7. Analysis of trustee remuneration and expenses

7.
Analysis of trustee remuneration and expenses
Group and Charity 2024 2023
£000 £000
Expenses paid to or on behalf of 14 (_2023: 12)_Trustees in respect
of travel, subsistence, and accommodation costs		 29 41

The Trustees give freely their time and expertise without any form of remuneration or other benefit in cash or kind (2023: £nil) .

Page 32 of 44

8. Analysis of staff costs and remuneration to key management personnel

The average monthly headcount for the group during the year was 97 (2023: 92) and for the charity 92 (2023: 88) . The number of full-time equivalent persons employed by the group and charity during the year was as follows:

Qualifications & Membership
Knowledge, Training, Promotion & Events
Management and Administration		 Group
Charity
2024
2023
2024
2023
36
31
33
29
35
35
35
35
18
20
17
18
89
86
85
82

The aggregate payroll costs of these persons were as follows:

Wages and salaries
Social security costs
Pension scheme contributions
Defined benefit pension scheme operating costs
Employee benefits		 Group
Charity
2024
2023
2024
2023
£000
£000
£000
£000
3,818
3,493
3,754
3,438
345
323
344
322
608
399
602
394
103
102
103
102
61
60
61
60
4,935
4,377
4,864
4,316

During 2024, £59,000 (2023: £nil) was paid out as redundancy or termination payments, which is included in the table above.

The numbers of employees, including the Chief Executive, whose total employee benefits, excluding employer pension contributions, exceeded £60,000, fell within the following ranges:

Group Charity
2024 2023 2024 2023
£ 60,001 - £70,000 1 5 1 5
£ 70,001 - £80,000 2 1 2 1
£ 80,001 - £90,000 3 - 3 -
£ 90,001 - £100,000 1 2 1 2
£ 100,001 - £110,000 1 1 1 1
£ 110,001 - £120,000 - 1 - 1
£ 120,001 - £130,000 1 - 1 -
£ 150,001 - £160,000 - 1 - 1
£ 210,001 - £220,000 1 - 1 -

The number of employees who earned more than £60,000 for whom pension benefits are accruing under the defined contribution pension scheme is 10 (2023: 11) . Contributions in respect of these employees amounted to £163,000 (2023: £105,000) . The Institution considers its key management personnel to comprise the Board of Trustees, the Chief Executive, and the Senior Management Team. The total employment benefits of key management personnel staff, including employer pension contributions and employer’s national insurance, were £1,026,000 (2023: £810,000) .

Page 33 of 44

9. Tangible fixed assets

Group
Cost or valuation
At beginning of year
Additions
Disposals
At end of year
Depreciation
At beginning of year
Charge for the year
Disposals
At end of year
Net book value
At 31 December 2024
At 31 December 2023
Charity
Cost or valuation
At beginning of year
Additions
Disposals
At end of year
Depreciation
At beginning of year
Charge for the year
Disposals
At end of year
Net book value
At 31 December 2024
At 31 December 2023		 Freehold
Property
Office
Equipment &
Computers
£000
£000
1,800
198
-
288
-
(84)		 Total
£000
1,998
288
(84)
1,800
402		 2,202
1,231
159
76
25
-
(84)		 1,390
101
(84)
1,307
100		 1,407
493
302		 795
569
39		 608
Freehold
Property
Office
Equipment &
Computers
£000
£000
1,800
198
-
288
-
(56)		 Total
£000
1,998
288
(84)
1,800
402		 2,202
1,231
159
76
25
-
(84)		 1,390
101
(84)
1,307
100		 1,407
493
302		 795
569
39		 608

Freehold property at 31 December 2024 includes land at valuation of £280,000 (2023: £280,000) which is not depreciated.

Page 34 of 44

10. Fixed Asset Investments

Group and Charity
Fair value at 1 January
Acquisitions at cost
Proceeds of disposals
Net gains on revaluation
Fair value at 31 December
Historical cost at 31 December		 2024
2023
£000
£000
6,385
6,319
1,474
3,135
(1,442)
(3,108)
253
39
6,670
6,385
3,798
3,766

All investments are carried at their fair value. An analysis of the fair value of the investments at 31 December 2024 is as follows:

Group and Charity 2024 2023
£000 £000
Equities 3,871 3,169
Fixed Interest 2,099 2,196
Other 571 809
Cash 129 211

Investment in Subsidiaries

The Institution holds 2 shares of £1 each in its wholly owned trading subsidiary company IChemE Ltd which is incorporated in the United Kingdom. These are the only shares allotted, called up and fully paid.

A new private limited company was established in Malaysia in October 2020, IChemE Malaysia Sdn Bhd. The Institution holds 100 shares of MYR 1 each in the wholly owned subsidiary.

The activities and results of these companies are summarised in note 2.

11. Debtors

Trade debtors
Amount due from subsidiaries
Other debtors
Prepayments and accrued income		 Group
Charity
2024
2023
2024
2023
£000
£000
£000
£000
333
339
308
294
-
-
262
213
28
4
28
3
1,183
881
1,149
858
1,544
1,224
1,747
1,368

Page 35 of 44

12. Creditors: amounts falling due within one year

12.
Creditors: amounts falling		 due within one year
Group Charity
2024 2023 2024 2023
£000 £000 £000 £000
Trade creditors 506 398 488 395
Other creditors 335 373 335 362
Taxation and social security 237 250 230 244
Accruals 244 494 218 472
Deferred income 1,799 1,820 1,794 1,805
3,121 3,335 3,065 3,278

Deferred income relates to annual subscriptions payments and events income which have been paid to the Institution in advance. All deferred income is released to the statement of financial activities in the following year.

13. Commitments

Total future commitments under non-cancellable operating leases are as follows:

Group
Amounts falling due:
In less than one year
In the second to fifth years inclusive
Over five years		 2024
2023
Land and
buildings
Other
Land and
Buildings
Other
£000
£000
£000
£000
63
5
38
6
36
3
-
6
-
-
-
-
99
8
38
12
Charity
Amounts falling due:
In less than one year
In the second to fifth years inclusive
Over five years		 2024
2023
Land and
buildings
Other
Land and
Buildings
Other
£000
£000
£000
£000
56
5
34
6
36
3
-
6
-
-
-
-
92
8
34
12

A first charge of £500,000 was placed on the freehold premises at Rugby in favour of the Defined Benefit Pension Scheme in March 2017.

Page 36 of 44

14. Analysis of movements in restricted funds

Group and Charity
At 1 January 2024
Income
Expenditure
At 31 December 2024		 International
Process
Safety
Group
(IPSG)
Medals &
Awards
(MM Sharma /
SIESO)
Andrew
Legacy
Fund
Sustainability
Hub
Total
£000
£000
£000
£000
£000
32
35
788
76
931
21
-
-
-
21
(25)
-
(106)
(31)
(163)
28
35
682
45
790

The IPSG funds relates to an industry funded technical centre which is administered in accordance with its Statute.

The MM Sharma Medal was created following a donation of £13,000 from the JB Joshi Foundation in 2018. An award of £1,000 is made to the winner(s) of the medal for excellence in the field of chemical engineering. The donation will also be used to fund IChemE’s administration expenses of up to £250 in the year of award.

The SIESO Medal was launched in 2019 following a bequest of £29,500 from SIESO (a society that Shared Information and Experience for Safer Operation) which ceased operations in 2018. The medal seeks to raise awareness of process safety among science, business, and engineering students. It consists of an award of £750 and up to £250 in travel allowance to attend the presentation.

The Andrew Legacy Fund seeks to hold a medal lecture on the theme of ‘The Science of Formulation of Heterogeneous Catalysts’ and to support academic research in enhancing the science of formulation of heterogeneous catalysts. The medal and lecture are normally awarded every three years. The Institution has also set up the Andrew Fellowship which funds up to two early career researchers a year to undertake research in the field of Heterogeneous Catalysts. The Fellowship consists of a stipend of £10,000 a year plus £5,000 a year in expenses for a period of up to four years.

In addition, the Andrew Legacy funds the ‘Sydney Andrew PhD Scholarship in Multiscale Catalysis Research’ run by the University of Bath. Funding for the Scholarship has been agreed at £25,300 a year for the period 2020-2024. The Fund also pays for up to 20 PhD, EngD or MSc students to attend a week-long summer school Catalysis: Fundamental and Practice about the fundamentals of heterogenous catalysis. The summer school is organised by, and held at, the University of Liverpool’s Department of Chemistry every two years.

In March 2021, the Institution received a donation of £200,000 to be used for the development of sustainability knowledge for chemical engineers. A programme of work began in May 2021 to create the Sustainability Hub, with a vision to create and deliver a sustainability knowledge resource. The Sustainability Hub was formally launched in February 2022, and additional training and content continued to be developed in 2024.

Page 37 of 44

15. Analysis of movements in unrestricted designated funds

15.
Analysis of movements in unrestricted designated funds
Group and Charity
At 1 January 2024
Expenditure
Transfer between funds
At 31 December 2024		 Future
Institution
Transformatio
n Programme
Total
£000
£000
350
350
-
-
-
-
350
350

In January 2022, the Board of Trustees agreed to designate £350,000 to future IT platform and business application enhancements. It is anticipated that this funding will be put towards the re-implementation of the membership database in 2025.

16. Related Party Transactions

During the year recharges have been made between the charity and its subsidiary undertakings. These relate to direct costs and staff costs incurred by one party on behalf of the other. The net amount recharged was:

Net amount recharged from /
(to) the charity in the year		 Net amount recharged from /
(to) the charity in the year		 Balance outstanding at year end
included in debtors / (creditors)
for the charity		 Balance outstanding at year end
included in debtors / (creditors)
for the charity
2024 2023 2024 2023
£000 £000 £000 £000
IChemE Ltd 30 (186) 143 113
IChemE in New Zealand 6 69 42 36
IChemE Malaysia Sdn Bhd 12 21 77 64
48 (96) 262 213

IChemE Ltd gift aids its operating profit to the charity and the balance of £72,000 (2023: £71,000) is included in debtors for the charity at year end.

Page 38 of 44

17. Analysis of group and charity net assets between funds

Fund balances at 31 December 2024 are represented by:

Fund balances at 31 December 2024 are represented by:
Group
Tangible fixed assets
Investments
Pension scheme funding deficit
Net current assets
Total net assets
Charity
Tangible fixed assets
Investments
Pension scheme funding deficit
Net current assets
Total net assets		 Unrestricted
funds
Restricted
Funds
£000
£000
795
-
6,670
-
(1,787)
-
2,044
790		 Total
£000
795
6,670
(1,787)
2,834
7,722
790		 8,512
Unrestricted
funds
Restricted
Funds
£000
£000
795
-
6,670
-
(1,787)
-
2,076
790		 Total
£000
795
6,670
(1,787)
2,866
7,754
790		 8,544

Page 39 of 44

18. Reconciliation of net movement in funds to net cash flow from operating activities

activities
Group
Net income
Adjustments for:
Depreciation on tangible fixed assets
(Gains) on investments
Dividends and interest from investments
Investment management fees
Difference between pension charge and cash contribution
(Increase) in debtors
(Decrease)/increase in creditors
Exchange (losses) arising from retranslation of foreign branches & subsidiaries
Change in cash and cash equivalents due to exchange rate movements
Net cash provided operating activities
Charity
Net income / (expenditure)
Adjustments for:
Depreciation on tangible fixed assets
(Gains) on investments
Dividends and interest from investments
Investment management fees
Difference between pension charge and cash contribution
(Decrease)/increase in debtors
(Decrease)/increase in creditors
Exchange (losses) arising from retranslation of foreign branches & subsidiaries
Change in cash and cash equivalents due to exchange rate movements
Net cash provided by operating activities		 2024
2023
£000
£000
1,078
968
101
78
(253)
(39)
(59)
(68)
27
41
(242)
(222)
(320)
(23)
(214)
648
(39)
(44)
106
75
185
1,414
2024
2023
£000
£000
1,149
1,018
101
78
(253)
(39)
(59)
(68)
27
41
(242)
(222)
(380)
29
(212)
678
(29)
(39)
63
35
165
1,511

Page 40 of 44

19. Analysis of changes in net debt

Group
Cash
Total
Charity
Cash
Total		 At start of year
Cash flows
Foreign
exchange
movements
£000
£000
£000
4,620
(103)
(106)		 At end of year
£000
4,411
4,620
(103)
(106)		 4,411
At start of year
Cashflows
Foreign
exchange
movements
£000
£000
£000
4,370
(123)
(63)		 At end of year
£000
4,184
4,370
(123)
(63)		 4,184

20. Pension scheme

Defined contribution scheme

The Institution’s Defined Contribution Pension Scheme for UK based staff was established in April 2006 following the closure of the Defined Benefit Scheme. The assets of the Scheme are held separately from those of the charity and from January 2021 were administered by The People’s Partnership (formerly The People’s Pension), provided by B&CE. The Institution pays one and a half times the percentage that the employee contributes up to a maximum of 12%. The total pension cost charge to the Institution, representing contributions payable to the fund amounted to £550,000 ( 2023: £356,000 ).

The total pension cost for the staff of the branch in Australia, which is paid under the superannuation scheme at 12% of base salary, was £52,000 (2023: £38,000) .

Pension costs relating to the employees of the Institution’s subsidiaries IChemE in Malaysia and IChemE in New Zealand amounted to £6,000 (2023: £5,000) .

Defined benefit scheme

The Institution operates a defined benefit pension arrangement called the Institution of Chemical Engineers Pension Scheme. The Scheme provides benefits based on salary and length of service on retirement, leaving service or death. In 2006, the Scheme was closed to new members, future service accruals and salary revaluations were limited with effect from 5 April 2006.

The scheme is funded with the assets being held by the pension scheme’s trustees separately from the assets of the Institution.

The Scheme is subject to the Statutory Funding Objective under the Pensions Act 2004. A valuation of the Scheme is carried out at least every three years to determine whether the Statutory Funding Objective is met. As part of the process, the Institution and the trustees of the Scheme must agree the contributions to be paid to address any shortfall against the Statutory Funding Objective.

Page 41 of 44

20. Pension scheme (continued)

The most recent triennial valuation of the Scheme as at 31 December 2023 was carried out during 2024. The results of that valuation showed that the deficit in the Scheme had decreased from £5.26m to £2.65m. In order to continue to address the deficit position, a Recovery Plan was agreed for the Institution to pay an annual contribution level of £368,000 a year, increasing in line with CPI, from 1 February 2024 to 30 November 2031.

The results of the valuation are updated by an independent qualified actuary on an annual basis allowing for cashflows in and out of the Scheme and for changes to assumptions over that period.

The Institution has also provided additional security to the Scheme by way of a charge of £500,000 on the freehold property in Rugby. The security agreement to put the charge in place was submitted to the Land Registry in March 2017.

Administrative and other expenses of the Scheme are payable separately by the Institution.

The principal assumptions used to calculate Scheme liabilities include:

2024 2023
% %
Discount rate 5.45% pa 4.45% pa
Inflation (RPI) 3.45% pa 3.30% pa
Inflation (CPI) 2.90% pa 2.90% pa
Pension increase (LP15) 2.85% pa 2.80% pa
90% of the S3NA tables with CMI 2023 90% of ‘S3NA’ tables with CMI 2020
projections using a long-term projections and a long-term rate of
improvement rate of 1.25% pa. The improvement of 1.25% pa. The initial
Post-retirement mortality initial addition is 0.25% pa, the 2020
and 2021 weight parameters are 0%,		 addition is 0.25% p.a. and the 2020 weight
parameter is 0%
and the 2022 and 2023 weight
parameters are 15%.
All members are assumed to take 25% of All members are assumed to take 25% of
Commutation their pension as tax-free cash their pension as tax-free cash

The major categories of assets are as follows:

Asset category
Liability Driven Investment (LDI)
Multi-asset Funds
Deposit and Treasury
Cash
Total		 2024
2023
£000
£000
3,516
3,726
2,935
3,315
633
364
49
63
7,133
7,468

Page 42 of 44

20. Pension scheme (continued)

Amounts recognised in the balance sheet:

Amounts recognised in the balance sheet:
Fair value of assets
Present value of funded obligations
(Deficit) in scheme		 2024
2023
£000
£000
7,133
7,468
(8,920)
(10,460)
(1,787)
(2,992)

Amounts recognised in the statement of financial activities over the year:

Interest on liabilities
Interest on assets
Total		 2024
2023
£000
£000
456
460
(331)
(331)
125
129

Remeasurements over the year:

Loss/(gain) on assets in excess of interest
Experience (gains)/losses on liabilities
(Gains)/losses from changes to demographic assumptions
(Gains)/Losses from changes to financial assumptions
Total		 2024
2023
£000
£000
584
(114)
(269)
187
(162)
-
(1,116)
220
(963)
293

The change in the value of the assets over the period was:

Fair value of assets at beginning of period
Interest on assets
Institution contributions
Benefits paid
Return on assets less interest
Value of assets at end of period		 2024
2023
£000
£000
7,468
7,066
331
331
367
351
(449)
(394)
(584)
114
7,133
7,468

The actual return on assets over the period was £253,000.

Page 43 of 44

20. Pension scheme (continued)

The change in the value of the defined benefit liabilities over the period was:

The change in the value of the defined benefit liabilities over the period was:
Value of liabilities at beginning of the period
Interest on liabilities
Benefits paid
Experience (gain)/loss on liabilities
Changes to demographic assumptions
Changes to financial assumptions
Value of liabilities at end of the period
Actuarial gains/(losses)		 2024
2023
£000
£000
10,460
9,987
456
460
(449)
(394)
(269)
187
(162)
-
(1,116)
220
8,920
10,460
2024
2023
£000
£000
963
(293)

The annual contribution level for the period 1 February 2024 to 31 January 2025 was £367,000. This will be increased by CPI inflation of 2.5% in line with the Recovery Plan to £377,000 for the period 1 February 2025 to 31 January 2026.

Page 44 of 44