# **Institution of Chemical Engineers Annual Report and Consolidated Financial Statements for the year ended 31 December 2025**
## **Contents**
|**_Trustees’ Report_**|**_3_**|
|---|---|
|**_Statement of Trustees responsibilities_**|**_18_**|
|**_Independent Auditor's Report to the Trustees of the Institution of Chemical Engineers_**|**_19_**|
|**_Consolidated statement of financial activities for the year ended 31 December 2025_**|**_23_**|
|**_Charity statement of financial activities for the year ended 31 December 2025_**|**_24_**|
|**_Balance sheets at 31 December 2025_**|**_25_**|
|**_Consolidated cash flow statement for the year ended 31 December 2025_**|**_26_**|
|**_Charity cash flow statement for the year ended 31 December 2025_**|**_26_**|
|**_Notes forming part of the financial statements for the year ended 31 December 2025_**|**_27_**|
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## **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 2025.
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 2025 – 10 June 2025**|**From 10 June 2025**|
|Mr ME Aspey|Prof R Ocone|
|Mr JN Hirst|Mr ME Aspey|
|Prof R Ocone|Dr Ollie Folayan|
|Dr DW Edwards|Mrs Liz Halifax|
|Prof A Harper|Prof A Harper|
|Mrs A Hosey|Mrs A Hosey|
|Prof J Cordiner|Prof J Cordiner|
|Mr P McLaughlin|Mr P McLaughlin|
|Mr T Muchatuta|Mr T Muchatuta|
|Mrs H Ramsay|Mrs H Ramsay|
|Ms A Vargas-Colwill|Ms A Vargas-Colwill|
||Mr Tom Whateley|
## **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 & Knowledge|
|Mrs A Walker|Director, Development & Innovation (from 19 January 2026)|
|Mrs C Flavell-While|Director, Learned Society (to 31 July 2025)|
|Mr A Foster|Director, Strategic Partnerships & Impact (to 31 July 2025)|
|Ms P Kerin|Director, IChemE Safety Centre (to 31 January 2025)|
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## **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:**_
- To publish statements in the public interest for the education or information of the general public on matters involving the science or application of chemical engineering.
- To adopt any lawful means conducive to the maintenance of a high standard of professional conduct amongst the members of the Institution.
- To hold or prescribe examinations or other assessments for candidates for election to membership in such classes as set out in the By-laws and to require standards of knowledge and experience approved by the Institution.
- To maintain, under licence from the Engineering Council or the Science Council, or any other successor organisations, or any other appropriate organisations, such Register, or parts thereof, as refer to relevant Chartered Practitioner status or to relevant Technician or other status.
- To hold meetings of the Institution for reading and discussing papers and communications bearing upon the science of chemical engineering or the application thereof or upon subjects relating thereto and generally to advance knowledge of chemical engineering.
- To print, publish, sell, lend, or distribute the proceedings or the reports of the Institution or any papers, communications, works or treatises on chemical engineering or its application or subjects connected therewith or extracts therefrom.
- To co-operate with Government Departments, Universities, other Educational Institutions and public educational authorities for the furtherance of knowledge of and education in chemical engineering, science, or practice.
- To co-operate with any other organisations to advance the cause of chemical engineering or for economic purposes related thereto.
- To do all other things incidental or conducive to the attainment of the above objects or any of them.
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## **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**
Throughout 2025, we continued to deliver strong progress against Strategy 28+, maintaining momentum and focusing our efforts on the three strategic priorities that underpin long-term organisational success. Our achievements through the year reflect sustained commitment to:
- Driving sustainable membership growth by strengthening our reach and relevance to ensure a thriving and diverse international membership community.
- Enhancing member experience by improving the quality, consistency, equity and value of every interaction that members, both existing and prospective, have with us.
- Making our voice heard and increasing our influence and visibility across the sector and beyond.
## _**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 continued efforts to sustainably remediate this position.
The 2025 membership cycle showed a 1.5% growth, reaching 31,700 members.
Key contributors to this success were:
- Across the institution, continuing to focus departmental business plans on sustainably increasing the number of new members joining IChemE alongside improving the retention rate of existing members. A particular focus has been on:
- Welcoming more technicians and work-based learners through a multi-pronged approach: a new EngTech application pilot, a new Work Based Learner membership grade, and joining the Technician Commitment as official supporters. Our ambition is to welcome 100 new members into this grade by the end of 2026.
- Targeting new member and employer partner attraction to a broader range of new and nontraditional industry sectors and industrial clusters e.g. food and drink, bioengineering, healthcare, sustainability, agritech.
- Maximising Partnerships with industry bodies and recruitment initiatives, such as STEM Returners, Adepto, Chemicals North West, NEPIC and others, are helping to attract a broader range of professionals into IChemE, strengthening our ability to grow membership sustainably and reflect the diversity of the sector.
- Continuously enhancing our offer for graduates and early-career members, ensuring a dynamic, attractive and relevant programme of activity with equitable access for all.
- Maximising the market engagement in territories where we have an established operations base e.g. UK and Ireland, Australasia, Malaysia whilst also piloting activity in areas with potential for membership growth e.g. Netherlands, India, UAE.
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- Launching our biennial Employment Survey with an expanded scope, moving beyond salary data to include insights from both individuals and employers and providing a more comprehensive picture of the chemical engineering workforce. The resulting report will be a key resource in the years ahead, informing our work with employers and members to support talent attraction and retention across the profession.
- Strengthening and streamlining our membership processes, reducing barriers while maintaining high professional standards. Key developments included piloting a revised Technician/EngTech route to better support candidates from technical and vocational pathways, and embedding a more inclusive approach to Fellow membership, resulting in the election of 52 new Fellows. We also enhanced our membership and accreditation processes and guidance materials to improve transparency and align more closely with regulatory expectations.
- Early exploration in the use of artificial intelligence within our membership processes to enhance efficiency. This early work will inform future improvements and ensure our services continue to evolve responsibly in line with emerging technologies and regulatory expectations.
- Working with over 75 employers through our Accredited Company Training Schemes (ACTS) and flexible, dynamic and tailored Employer Partners scheme. Our new, more flexible approach has driven a step change in the number and diversity of employers we engage, large multi-nationals to SMEs and contractors, to support our growth efforts into a more diverse range of industry sectors, ensuring that we represent the breadth and multidisciplinary nature of our profession.
- Supporting universities and training providers across the UK and internationally to accredit the content of 363 educational programmes from 69 Universities, alongside working in partnership with these organisations to foster good practice and support professional registration of their academic staff.
- Ensuring vibrant and thriving member communities across all our key international territories through aligning our National Boards on their plans to help achieve our strategic priorities.
## _**Improved member experience**_
Members remain at the heart of the Institution, contributing their time and expertise to advance society, the economy and the planet. We continue to embed a member first approach, evolving our services to meet increasingly diverse needs across the profession and delivering high-quality support to our members, partners and the wider chemical engineering community.
Across the Institution, we focused on ensuring equitable access for all members, regardless of career stage, geography or personal circumstances.
Key contributors to this success were:
- Introducing new recognition activities, including a Fellows’ luncheon and IChemE’s first Conferring Ceremonies to celebrate newly elected Chartered and Fellow members, medal and prize winners, and recognising volunteer contributions.
- Undertaking the latest Royal Academy of Engineering EDI Benchmarking assessment to identify our strengths and areas for development. The findings will guide our ongoing work to continuously develop an inclusive culture, support the diverse needs of our global membership and further embed good practice across all areas of the Institution.
- Embedding a service-first culture across all areas of the institution, to ensure members and other stakeholders consistently experience responsive, high-quality support that strengthens their engagement, satisfaction, and long-term commitment to IChemE.
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- Streamlining our member and stakeholder communications across social media, email and our online community (IChemE Connect) resulted in consistently high engagement across all channels. Our e ‑ communications alone achieved open rates above 50%, and overall engagement levels significantly exceeded industry benchmarks.
- Introducing a new Development & Innovation Directorate to drive long ‑ term growth by leading the design, testing and introduction of new products and services. The directorate strengthens data ‑ driven decision ‑ making, supports continuous improvement and accelerates innovation that enhances the value of membership and benefits the wider engineering profession. It is also focused on delivering greater impact and revenue across our publications and conferences, ensuring they ‑
- remain representative of the sector and forward looking.
- Strengthening the volunteer experience through improvements to operational processes that supported smoother onboarding, clearer pathways and broader access to training. In addition, opportunities for recognition and celebration were expanded so that the valuable contributions of volunteers across the Institution were more visibly acknowledged.
## _**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 actively engaging members in generating and sharing knowledge. This takes place through our key membership publications—TCE and the Loss Prevention Bulletin (LPB)—as well as through our Regional Member Groups, Special Interest Groups, and the Institution’s academic journals. We also extend this engagement to employers of our members through our Company Partnership schemes and the IChemE Safety Centre.
To raise awareness amongst future talent pools, we have committed to impactful support for young people, parents, and teachers through our growing 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:
- Further strengthening our role as a trusted convener by bringing together experts, policymakers and industry leaders to inform national and international policy discussions on key topics such as decarbonisation, skills and digitalisation. Through targeted roundtables, parliamentary engagement and representation at major external events, we helped ensure that chemical engineering insight shaped policy development and supported more effective engagement with government.
- Building our partnerships with key international stakeholders to maximise the collective impact of our work. This includes, but is not limited to: the American Institute for Chemical Engineering (AIChE); Institution of Engineers Malaysia; Nigerian Society for Chemical Engineering (NSChE); Zimbabwe Institution of Engineers; the European Federation of Chemical Engineering (EFCE); and European Young Engineers.
- Continuing to strengthen the talent pipeline for chemical engineering through our DiscoverChemEng programme. Our work in supporting young people has driven sustained growth in university ‑
- applications, high profile engagement events and virtual work experience reaching thousands of ‑
- young people, expansion of activities into new regions and focused outreach in socio economically
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disadvantaged areas, all contributing to more young people entering the profession and being supported to stay in it.
- Expanding the range of journals published by IChemE to ensure our portfolio covers emerging topics and supports IChemE’s sustainability goals. A new journal entitled "Process Engineering for Sustainable Development" is being developed for launch in spring/summer 2026. The journal's scope is closely aligned with IChemE's strategic vision of "Engineering a sustainable world" and its mission of “Putting chemical and process engineering at the heart of a sustainable future, benefitting members, society and the environment”.
- The IChemE Safety Centre strengthening its global impact by facilitating the annual meeting of the International Process Safety Group (IPSG), publishing new Management of Change (MOC) guidance, and collaborating with CCPS, MKOPSC, EPSC and FABIG to launch the inaugural International Process Safety Day on 2 December. The Centre also delivered plenary sessions and workshops at major international conferences. Throughout the year, we continued to extend the reach and influence of ‑
- the IChemE Safety Centre, promoting holistic systems thinking approaches to process safety and making lessons from past incidents more widely accessible across industry sectors to build capability and contribute to a safer world.
## **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 2026, we will continue our focus on the three priority areas identified below, alongside evolving our strategy for the next 5 years.
## _**Sustainable membership growth**_
We have set ambitious but achievable growth targets of 3–5% per year, with a continued focus on sustainable expansion of both the number and diversity of our membership. Our priority is to attract new members at all levels, ensure they receive the support and engagement they need, and encourage them to ‑ choose IChemE as their long term professional home.
Across the Institution, teams will continue strengthening the foundations for sustainable growth by enhancing engagement, creating clearer and more flexible membership pathways, broadening our offer to meet diverse needs, and increasing volunteer and partner capacity. These efforts will support increased global participation and a more inclusive, representative membership community.
In 2026, we will undertake all of our scheduled licence reviews, demonstrating our continued commitment to upholding high professional standards and ensuring full alignment with regulatory expectations.
## _**Improving member experience**_
‑ We will continue to enhance the member experience by developing new, high quality products and services and continuously improving existing ones. Our focus is on attracting and retaining an increasing number and diversity of members, and strengthening the value we offer across all career stages. Key priorities for the year ahead include:
- Maximising insights from the 2025 Employment Survey to deepen our engagement with mid ‑ career professionals and support employers across the sector in addressing challenges in talent attraction and retention.
- Expanding and elevating mentoring, ensuring it becomes a more visible and integral part of the member experience, supporting both personal and professional development.
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- Embedding Equity, Diversity and Inclusion across all areas of IChemE operations by implementing findings from recent benchmarking and other reports, enabling a targeted, organisation ‑ wide action plan that strengthens an inclusive culture and supports diverse member needs.
## _**Making our voice heard**_
We will continue to champion the vital and increasingly impactful contributions that chemical, biochemical and process engineers make to society. Strengthening IChemE’s visibility and influence with government, policymakers and the wider public will remain a key priority, ensuring the profession’s expertise informs critical decisions and supports positive societal outcomes.
In the year ahead, we will:
- Increase the presence of IChemE members and chemical engineering expertise in the media, raising awareness of the profession’s role in addressing global challenges.
- Refine our communications approach, particularly via social media channels, to reposition core IChemE activities and make them more visibly associated with IChemE.
- Launch a new programme of public engagement activities to build wider understanding of how chemical engineering improves lives and contributes to a sustainable future.
- Work with members and partners to explore the future of chemical engineering, delivering a range of initiatives that stimulate discussion, inspire innovation and shape the long ‑ term direction of the profession.
These efforts will help ensure IChemE’s voice is heard clearly and consistently, reinforcing the value and impact of chemical engineering around the world.
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## **Financial Review**
The financial statements for the year ended 31 December 2025 are set out on pages 23 to 45.
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 £10,570,000 _(2024: £10,794,000)_ . The principal sources of income were from:
- Membership subscription and accreditation fees totalling £4,955,000 _(2024: £4,645,000)_ .
- IChemE’s training course activity generated £2,186,000 _(2024: £2,898,000)_ in delegate fees. A further £926,000 _(2024: £840,000)_ was received from attendance and sponsorship of major conferences and the global awards event.
- Royalty fees from our journals and sales of publications totalling £1,904,000 _(2024: £1,795,000)._
- Income from the Institution’s knowledge communities of £406,000 _(2024: £423,000)_ , the majority of which relates to company subscriptions to the IChemE Safety Centre. Other income from collaboration with other entities generated £9,000 _(2024: £8,000_ ).
- The income of the Institution’s trading subsidiary IChemE Ltd, which is generated mainly through the sale of advertising space in _The Chemical Engineer_ , was £123,000 _(2024: £126,000)._
- A donation of £10,000 _(2024: £nil)_ was received to support IChemE’s DiscoverChemEng activity. There were no other donations or legacies received or notified to the Institution in 2025.
- Dividends and interest on the Institution’s investment portfolio was £51,000 _(2024: £59,000)_ .
Total group expenditure for the year was £10,062,000 _(2024: £9,828,000)_ .
Overall net income before gains on investment funds, was £508,000 _(2024: £966,000)._ Unrealised gains on investments for the year were £667,000 _(2024: £253,000)_ resulting in an overall net income of £1,175,000 _(2024: £1,219,000)_ .
After the other recognised gains or losses; actuarial gains on the defined benefit pension scheme of £94,000 _(2024: £963,000);_ as well as exchange losses on the retranslation of the balance sheets of the foreign branches and subsidiaries of £2,000 _(2024: £39,000),_ the unrestricted fund balance at year end increased by £1,267,000 _(2024: £2,143,000)_ to £8,989,000 _(2024: £7,722,000)_ .
The Institution’s wholly owned trading subsidiary, IChemE Ltd, achieved an operating profit of £75,000 _(2024: £72,000)_ , 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 2025 was £86,000 _(2024: £141,000_ ). The total restricted fund balance at year end was £704,000 _(2024: £790,000)_ .
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 £51,000 _(2024: £59,000)_ in interest and dividends, and incurred management fees of £39,000 _(2024: £37,000)._ The funds generated unrealised gains of £667,000 _(2024: £253,000)._ The total return for the year, taking into account all income, management fees and market value movements, was an increase of 10.3% _(2024: 4.5%)_ .
No disinvestments were made from the funds in 2025 _(2024: £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 2025 was £7,359,000 _(2024: £6,670,000)._ 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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In 2024, the reserves policy and target free reserves level was reviewed and updated 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:
- to meet working capital requirements
- to safeguard the organisation against unexpected financial challenges such as a sudden reduction in income, unforeseen expenditure, or a fall in the market value of the investments;
- to ensure that the organisation can continue to provide services to its members in the event of financial or operational disruption;
- to cover any unexpected contributions in respect of the defined benefit pension scheme;
- to support strategic initiatives and opportunities that may require funding over the medium to long term;
- to cover committed costs should the Institution be unable to continue.
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 £9,722,000 _(2024: £8,364,000)._ This excludes tangible fixed assets of £671,000 _(2024: £795,000)_ , the restricted fund balance of £704,000 _(2024: £790,000)_ , and the pension valuation of £1,404,000 _(2024: £1,787,000)_ 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.
As the level of free reserves held at year end is above the current reserves policy range, during 2026 the Trustees will continue to review the needs of the charity, consider whether to designate any reserves for future purpose, and, due to the fluctuation in the market value of the investment funds which can have a significant impact on the free reserves level, will continue to monitor the performance of the investment funds.
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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:
- President
- Deputy President
- Immediate Past President
- Treasurer
- three Vice-Presidents
- three ordinary members
- two regional members
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.
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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. 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. From April 2026, the Institution will operate directly in New Zealand as a branch and the legal entity in that country will close.
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:
- Qualifications Committee
- Learned Society Committee
- Member Engagement Committee
- Governance Committee
- Finance & HR Committee
- Audit and Risk Committee
- Succession Planning Committee
- Nominations Committee
- Commercial Committee
- Professional Conduct Pool
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.
Page 15 of 45
## _**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; organisations being assessed for accreditation; representation on the Board of Trustees, Congress and aligned committees; acting as 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 7 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 16 of 45
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 2025 which could impact the delivery of the strategy are listed below.
|**Risk**|**Control and Mitigation Measures**|
|---|---|
|Continuity of membership
revenue|Increased engagement with members and potential members at all grades,
and with employers and educators, demonstrating the value proposition of
membership. Working with vocational education providers to approve non-
traditional and emerging routes into membership. Raising awareness of
routes and careers in the sector by continuing to expand the
DiscoverChemEng campaign and young people’s engagement activity.
Continuing to streamline and simplify the membership application processes
providing additional member support as required.|
|Continuity of commercial
revenue|New directorate created in 2025 to drive development and innovation in
IChemE’s income generating activities, and across other areas of the
business. Full review of service offering and market research to ensure
product offering meets requirements. 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|Continue to increase engagement with government and influencers in key
geographies to become a trusted advisor to governments, policymakers, and
the public. Continue to use the Technical Challenge report to drive member
engagement, knowledge outputs and policy work.|
|Compliance and risk
management|Regular review of our operations to ensure governance structure and
oversight remains appropriate – Governance Review commenced in 2025.
Scheme of Delegation established clearly setting out decisions delegated to
committees of the Board of Trustees and the Executive team. Use
professional advisors as necessary in the UK and at a local level for overseas
branches and subsidiaries. Regularly review, refresh and rollout of key
policies, guidance and training for staff and volunteers i.e. GDPR, cyber
security, safeguarding etc.|
The Trustees are satisfied that reasonable steps are being taken to limit the probability and the impact of risk.
Page 17 of 45
## **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:
- select suitable accounting policies and then applies them consistently.
- make judgements and estimates that are reasonable and prudent.
- prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Institution will continue its activities.
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 14 April 2026 and signed on its behalf by:
Prof R Ocone _President_
Mrs L Halifax _Treasurer_
Davis Building, 165-189 Railway Terrace, Rugby, CV21 3HQ
Page 18 of 45
## **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 2025 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:
- give a true and fair view of the state of the group’s and parent charity’s affairs as at 31 December 2025 and of the group’s and parent charity’s incoming resources and application of resources for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005, regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011.
## _**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 19 of 45
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:
- the information given in the financial statements is inconsistent in any material respect with the trustees’ annual report; or
- proper and sufficient accounting records have not been kept by the parent charity; or
- the parent charity financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## _**Responsibilities of trustees**_
As explained more fully in the statement of trustees’ responsibilities set out on page 18 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.
Page 20 of 45
## _**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:
- obtained an understanding of the nature of the sector, including the legal and regulatory frameworks that the group and parent charity operate in and how the group and parent charity 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, 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 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 21 of 45
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:
RSM UK Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
Page 22 of 45
## **Consolidated statement of financial activities for the year ended 31 December 2025**
|_Note_
**INCOME**
**Donations & legacies**
**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**
**2025**
Unrestricted
Funds
Restricted
Funds
Total
2024
**£000**
**£000**
**£000**
£000
£000
£000
**10**
**-**
**10**
-
-
-
**4,955**
**-**
**4,955**
4,645
-
4,645
**5,431**
**28**
**5,459**
5,964
21
5,985
**123**
**-**
**123**
126
-
126
**51**
**-**
**51**
59
-
59|
|---|---|
||**10,570**
**28**
**10,598**
10,794
21
10,815|
||**(48)**
**-**
**(48)**
(54)
-
(54)
**(39)**
**-**
**(39)**
(37)
-
(37)
**(4,956)**
**-**
**(4,956)**
(4,383)
-
(4,383)
**(5,019)**
**(114)**
**(5,133)**
(5,354)
(162)
(5,516)|
||**(10,062)**
**(114)**
**(10,176)**
(9,828)
(162)
(9,990)|
||**667**
**-**
**667**
253
-
253|
||**1,175**
**(86)**
**1,089**
1,219
(141)
1,078
**-**
**-**
**-**
-
-
-
**94**
**-**
**94**
963
-
963
**(2)**
**-**
**(2)**
(39)
-
(39)|
||**1,267**
**(86)**
**1,181**
2,143
(141)
2,002
**7,722**
**790**
**8,512**
5,579
931
6,510|
||**8,989**
**704**
**9,693**
7,722
790
8,512|
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 27 to 45 form part of these financial statements.
Page 23 of 45
## **Charity statement of financial activities for the year ended 31 December 2025**
|_Note_
**INCOME**
**Donations & legacies**
**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**
**2025**
Unrestricted
Funds
Restricted
Funds
Total
2024
**£000**
**£000**
**£000**
£000
£000
£000
**10**
**-**
**10**
-
-
-
**75**
**-**
**75**
72
-
72
**4,954**
**-**
**4,954**
4,645
-
4,645
**5,422**
**28**
**5,450**
5,930
21
5,951
**51**
**-**
**51**
59
-
59|
|---|---|
||**10,512**
**28**
**10,540**
10,706
21
10,727|
||**(39)**
**-**
**(39)**
(37)
-
(37)
**(5,024)**
**-**
**(5,024)**
(4,335)
-
(4,335)
**(4,993)**
**(114)**
**(5,107)**
(5,297)
(162)
(5,459)|
||**(10,056)**
**(114)**
**(10,170)**
(9,669)
(162)
(9,831)|
||**667**
**-**
**667**
253
-
253|
||**1,123**
**(86)**
**1,037**
1,290
(141)
1,149
**-**
**-**
**-**
-
-
-
**94**
**-**
**94**
963
-
963
**(1)**
**-**
**(1)**
(29)
-
(29)|
||**1,216**
**(86)**
**1,130**
2,224
(141)
2,083
**7,754**
**790**
**8,544**
5,530
931
6,461|
||**8,970**
**704**
**9,674**
7,754
790
8,544|
Page 24 of 45
## **Balance sheets at 31 December 2025**
|_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**
**2025**
2024
**2025**
2024
**£000**
£000
**£000**
£000
**671**
795
**671**
795
**7,359**
6,670
**7,359**
6,670|
|---|---|
||**8,030**
7,465
**8,030**
7,465
**1,708**
1,544
**1,930**
1,747
**4,044**
4,411
**3,771**
4,184|
||**5,752**
5,955
**5,701**
5,931
**(2,685)**
(3,121)
**(2,653)**
(3,065)|
||**3,067**
2,834
**3,048**
2,866|
|||
||**11,097**
10,299
**11,078**
10,331
**(1,404)**
(1,787)
**(1,404)**
(1,787)|
||**9,693**
8,512
**9,674**
8,544|
||**10,393**
9,159
**10,374**
9,191
**-**
350
**-**
350
**(1,404)**
(1,787)
**(1,404)**
(1,787)|
||**8,989**
7,722
**8,970**
7,754
**704**
790
**704**
790|
||**9,693**
8,512
**9,674**
8,544|
These financial statements were approved by the Board of Trustees and authorised for issue on 14 April 2026.
Prof R Ocone
Page 25 of 45
## **Consolidated cash flow statement for the year ended 31 December 2025**
|_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**|**2025**
2024
**£000**
£000
**(359)**
185|
|---|---|
||**51**
59
**(1,267)**
(1,473)
**1,216**
1,414
**(3)**
(288)|
||**(3)**
(288)|
||**(362)**
(103)
**4,411**
4,620
**(5)**
(106)|
||**4,044**
4,411|
## **Charity cash flow statement for the year ended 31 December 2025**
|_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**|**2025**
2024
**£000**
£000
**(411)**
165|
|---|---|
||**51**
59
**(1,267)**
(1,473)
**1,216**
1,414
**(3)**
(288)|
||**(3)**
(288)|
||**(414)**
(123)
**4,184**
4,370
**1**
(63)|
|||
||**3,771**
4,184|
Page 26 of 45
## **Notes forming part of the financial statements for the year ended 31 December 2025**
## **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 2025; 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 27 of 45
## **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 28 of 45
## **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:
- Restricted income funds - these are earmarked by the donor for specific purposes within the overall aims of the Institution. The income generated must be used in accordance with the specific purpose.
- Unrestricted funds - these funds comprise funds which are expendable at the discretion of the Board of Trustees in connection with the objects of the Institution. Designated funds comprise unrestricted funds that have been set aside by the Trustee for a particular purpose.
## _**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 29 of 45
## **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:
- determining whether leases entered into by the group either as a lessor or a lessee are operating leases or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease-by-lease basis.
## _**Other key sources of estimation uncertainty:**_
- Tangible fixed assets (see note 9). Tangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of these assets are assessed annually and may vary depending on a number of factors. In assessing asset lives, factors such as life cycle and maintenance programmes are taken into account. Residual value assessments consider issues such as the remaining life of the asset and project disposal values.
- Trade debtors (see note 11). At each reporting date, trade debtors are assessed for recoverability. If there is any evidence of impairment, the carrying amount of the debtor is reduced to its recoverable amount. The impairment loss is recognised immediately in the income statement.
- Pensions costs (see note 20). The defined benefit pension scheme obligations are based on actuarial assumptions such as discount rate, the expected rate of return on scheme assets, and mortality rates, which are extensively detailed in note 20.
Page 30 of 45
## **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**
**2025**
**Total**
2024
Total
**£000**
**£000**
**£000**
**£000**
£000
**123**
**-**
**183**
**306**
202
**(48)**
**(32)**
**(99)**
**(179)**
(201)|**IChemE**
**Ltd**
**IChemE in**
**New Zealand**
**IChemE**
**Malaysia**
**Sdn Bhd**
**2025**
**Total**
2024
Total
**£000**
**£000**
**£000**
**£000**
£000
**123**
**-**
**183**
**306**
202
**(48)**
**(32)**
**(99)**
**(179)**
(201)|
|---|---|---|
||**75**
**(32)**
**84**
**127**
1
**(75)**
**-**
**-**
**(75)**
(72)||
||**-**
**(32)**
**84**
**52**
(71)||
||**IChemE**
**Ltd**
**IChemE in**
**New Zealand**
**IChemE**
**Malaysia**
**Sdn Bhd**
**2025**
**Total**
**£000**
**£000**
**£000**
**£000**
**-**
**-**
**-**
**-**|
2024
Total
£000
-|
||**174**
**25**
**100**
**299**
**(174)**
**(11)**
**(95)**
**(280)**|
286
(318)|
||**-**
**14**
**5**
**19**|
(32)|
||**-**
**14**
**5**
**19**|
(32)|
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) is a private company limited by shares incorporated in Malaysia.
## **3. Analysis of income from charitable activities**
||**Group**||**Charity**||
|---|---|---|---|---|
||**2025**|2024|**2025**|2024|
||**£000**|£000|**£000**|£000|
|**_Qualifications & Membership:_**|||||
|Membership subscription and accreditation fees|**4,955**|4,645|**4,954**|4,645|
|**_Knowledge, Training, Promotion & Events:_**|||||
|Journals & publications|**1,904**|1,795|**1,904**|1,795|
|Knowledge communities|**406**|423|**403**|409|
|Conferences, seminars & events|**926**|840|**926**|827|
|Provision of training|**2,186**|2,898|**2,180**|2,891|
|Other income|**9**|8|**9**|8|
|Subscriptions to technical centres (restricted funds)|**28**|21|**28**|21|
||**10,414**|10,630|**10,404**|10,596|
Page 31 of 45
## **4. Investment income**
**Group and Charity**
|||
|---|---|
|**Group and Charity**
Interest receivable
Dividends receivable|**2025**
2024
**£000**
£000
**11**
7
**40**
52|
||**51**
59|
## **5. Analysis of expenditure on charitable activities**
|**Group**
Qualifications & Membership
Knowledge, Training, Promotion & Events|**Direct activity**
**costs**
**Support**
**costs**
**2025**
**Total**
2024
Total
**£000**
**£000**
**£000**
£000
3,250
1,706
**4,956**
4,383
3,778
1,355
**5,133**
5,516|
|---|---|
||7,028
3,061
**10,089**
9,899|
Expenditure on charitable activities was £10,089,000 _(2024: £9,899,000)_ of which £9,975,000 was unrestricted _(2024: £9,737,000_ ) and £114,000 was restricted _(2024: £162,000)_ .
|**Charity**
Qualifications & Membership
Knowledge, Training, Promotion & Events|**Direct activity**
**costs**
**Support**
**costs**
**2025**
**Total**
2024
Total
**£000**
**£000**
**£000**
£000
3,364
1,660
**5,024**
4,335
3,762
1,345
**5,107**
5,459|
|---|---|
||7,126
3,005
**10,131**
9,794|
Expenditure on charitable activities was £10,131,000 _(2024: £9,794,000)_ of which £10,017,000 was unrestricted _(2024: £9,632,000_ ) and £114,000 was restricted _(2024: £162,000)_ .
Net income for the year is stated after charging / (crediting):
||**Group**||**Charity**||
|---|---|---|---|---|
||**2025**|2024|**2025**|2024|
||**£000**|£000|**£000**|£000|
|Depreciation|**127**|101|**127**|101|
|Operating leases:|||||
|Plant and machinery|**5**|6|**5**|6|
|Land and buildings|**65**|57|**58**|52|
|Exchange rate differences|**(9)**|(36)|**6**|(31)|
Page 32 of 45
## **6. Analysis of governance and support costs**
Included within expenditure on charitable activities are governance and support costs amounting to £3,061,000 _(2024: £3,299,000)_ . These are analysed as:
|Staff costs
Finance
IT
Facilities & HR
Management & Governance|**Group**
**Charity**
**2025**
2024
**2025**
2024
**£000**
£000
**£000**
£000
**1,244**
1,179
**1,212**
1,138
**343**
430
**334**
426
**518**
551
**517**
549
**762**
958
**754**
948
**194**
181
**188**
175|
|---|---|
||**3,061**
3,299
**3,005**
3,236|
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**
**2025**
2024
**2025**
2024
**£000**
£000
**£000**
£000
**1,706**
1,769
**1,660**
1,723
**1,355**
1,530
**1,345**
1,514|
|---|---|
||**3,061**
3,299
**3,005**
3,237|
## _**Analysis of governance costs:**_
|Legal and Professional Fees
External Audit
AGM & EGM Expenses
Electoral Services|**Group**
**Charity**
**2025**
2024
**2025**
2024
**£000**
£000
**£000**
£000
25
61
23
59
55
47
47
40
4
9
4
8
7
4
7
4|
|---|---|
||**91**
121
**81**
111|
## **7. Analysis of trustee remuneration and expenses**
|**7.**
**Analysis of trustee remuneration and expenses**|||
|---|---|---|
|**Group and Charity**|**2025**|2024|
||**£000**|£000|
|Expenses paid to or on behalf of 15 (_2024: 14)_Trustees in respect
of travel, subsistence, and accommodation costs|**34**|29|
The Trustees give freely their time and expertise without any form of remuneration or other benefit in cash or kind _(2024: £nil)_ .
Page 33 of 45
## **8. Analysis of staff costs and remuneration to key management personnel**
The average monthly headcount for the group during the year was 91 _(2024: 97)_ and for the charity 86 _(2024: 92)_ . 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**
**2025**
2024
**2025**
2024
**35**
36
**32**
33
**34**
35
**34**
35
**18**
18
**17**
17|
|---|---|
||**87**
89
**83**
85|
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**
**2025**
2024
**2025**
2024
**£000**
£000
**£000**
£000
**3,767**
3,818
**3,699**
3,754
**412**
345
**411**
344
**593**
608
**586**
602
**111**
103
**111**
103
**54**
61
**54**
61|
|---|---|
||**4,937**
4,935
**4,861**
4,864|
During 2025, £63,000 _(2024: £59,000)_ 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**||
|---|---|---|---|---|---|
|||**2025**|2024|**2025**|**2024**|
|£|60,001 - £70,000|**4**|1|**4**|1|
|£|70,001 - £80,000|**-**|2|**-**|2|
|£|80,001 - £90,000|**-**|3|**-**|3|
|£|90,001 - £100,000|**3**|1|**3**|1|
|£|100,001 - £110,000|**1**|1|**1**|1|
|£|110,001 - £120,000|**1**|-|**1**|-|
|£|120,001 - £130,000|**-**|1|**-**|1|
|£|210,001 - £220,000|**-**|1|**-**|1|
|£|220,001 - £230,000|**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 9 _(2024: 10)_ . Contributions in respect of these employees amounted to £183,000 _(2024: £163,000)_ . 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 £973,000 _(2024: £1,026,000)_ .
Page 34 of 45
## **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 2025**
At 31 December 2024
**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 2025**
At 31 December 2024|**Freehold**
**Property**
**Office**
**Equipment &**
**Computers**
**£000**
**£000**
1,800
402
-
3
-
(11)|**Total**
**£000**
**2,202**
**3**
**(11)**|
|---|---|---|
||**1,800**
**394**|**2,194**|
||1,307
100
76
51
-
(11)|**1,407**
**127**
**(11)**|
||**1,383**
**140**|**1,523**|
||||
||**417**
**254**|**671**|
||||
||493
302|795|
||**Freehold**
**Property**
**Office**
**Equipment &**
**Computers**
**£000**
**£000**
1,800
402
-
3
-
(11)|**Total**
**£000**
**2,202**
**3**
**(11)**|
||**1,800**
**394**|**2,194**|
||1,307
100
76
51
-
(11)|**1,407**
**127**
**(11)**|
||**1,383**
**140**|**1,523**|
||||
||**417**
**254**|**671**|
||||
||493
302|795|
Freehold property at 31 December 2025 includes land at valuation of £280,000 _(2024: £280,000)_ which is not depreciated.
Page 35 of 45
## **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**|**2025**
2024
**£000**
£000
**6,670**
6,385
**1,267**
1,474
**(1,245)**
(1,442)
**667**
253|
|---|---|
||**7,359**
6,670|
||**3,821**
3,798|
All investments are carried at their fair value. An analysis of the fair value of the investments at 31 December 2025 is as follows:
|**Group and Charity**|**2025**|2024|
|---|---|---|
||**£000**|£000|
|Equities|**4,299**|3,871|
|Fixed Interest|**2,307**|2,099|
|Other|**609**|571|
|Cash|**144**|129|
## _**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**
**2025**
2024
**2025**
2024
**£000**
£000
**£000**
£000
**450**
333
**442**
308
**-**
-
**249**
262
**59**
28
**58**
28
**1,199**
1,183
**1,181**
1,149|
|---|---|
||**1,708**
1,544
**1,930**
1,747|
Page 36 of 45
## **12. Creditors: amounts falling due within one year**
|**12.**
**Creditors: amounts falling**|**due within one year**||||
|---|---|---|---|---|
||**Group**||**Charity**||
||**2025**|2024|**2025**|2024|
||**£000**|£000|**£000**|£000|
|Trade creditors|**475**|506|**472**|488|
|Other creditors|**256**|335|**256**|335|
|Taxation and social security|**249**|237|**247**|230|
|Accruals|**343**|244|**323**|218|
|Deferred income|**1,362**|1,799|**1,355**|1,794|
||**2,685**|3,121|**2,653**|3,065|
Deferred income relates to annual subscription payments and events income which have been paid to the Institution in advance:
|Institution in advance:|||||
|---|---|---|---|---|
||**Group**||**Charity**||
||**2025**|2024|**2025**|2024|
||**£000**|£000|**£000**|£000|
|Balance at 1 January|**1,799**|490|**1,794**|475|
|Amounts released from previous year|**(1,799)**|(490)|**(1,794)**|(475)|
|Resources deferred in year|**1,362**|1,799|**1,355**|1,794|
|Balance at 31 December|**1,362**|1,799|**1,355**|1,794|
## **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|**2025**
2024
**Land and**
**buildings**
**Other**
Land and
Buildings
Other
**£000**
**£000**
£000
£000
**37**
**4**
63
5
**16**
**4**
36
3
**-**
**-**
-
-|
|---|---|
||**53**
**8**
99
8|
## **Charity**
|**Charity**
Amounts falling due:
In less than one year
In the second to fifth years inclusive
Over five years|**2025**
2024
**Land and**
**buildings**
**Other**
Land and
Buildings
Other
**£000**
**£000**
£000
£000
**29**
**4**
56
5
**-**
**4**
36
3
**-**
**-**
-
-|
|---|---|
||**29**
**8**
92
8|
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 37 of 45
## **14. Analysis of movements in restricted funds**
|**Group and Charity**
At 1 January 2025
Income
Expenditure
**At 31 December 2025**|**International**
**Process**
**Safety**
**Group**
**(IPSG)**
**Medals &**
**Awards**
**(MM Sharma /**
**SIESO)**
**Andrew**
**Legacy**
**Fund**
**Sustainability**
**Hub**
**Total**
**£000**
**£000**
**£000**
**£000**
**£000**
28
35
682
45
790
28
-
-
-
28
(25)
(2)
(50)
(37)
(114)|
|---|---|
||**31**
**33**
**632**
**8**
**704**|
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 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 2025.
Page 38 of 45
## **15. Analysis of movements in unrestricted designated funds**
|**15.**
**Analysis of movements in unrestricted designated funds**||
|---|---|
|**Group and Charity**
At 1 January 2025
Expenditure
Transfer between funds
**At 31 December 2025**|**Future IT**
**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. The fund was fully assigned to 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:
|IChemE Ltd
IChemE in New Zealand
IChemE Malaysia Sdn Bhd|**Net amount recharged from /**
**(to) the charity in the year**
**Balance outstanding at year end**
**included in debtors / (creditors)**
**for the charity**
**2025**
2024
**2025**
2024
**£000**
£000
**£000**
£000
**21**
30
**164**
143
**(42)**
6
**-**
42
**8**
12
**85**
77|
|---|---|
||**(13)**
48
**249**
262|
IChemE Ltd gift aids its operating profit to the charity and the balance of £75,000 (2024: £72,000) is included in debtors for the charity at year end.
Page 39 of 45
## **17. Analysis of group and charity net assets between funds**
Fund balances at 31 December 2025 are represented by:
|Fund balances at 31 December 2025 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**
671
-
7,359
-
(1,404)
-
2,363
704|**Total**
**£000**
671
7,359
(1,404)
3,067|
||8,989
704|**9,693**|
||**Unrestricted**
**funds**
**Restricted**
**Funds**
**£000**
**£000**
671
-
7,359
-
(1,404)
-
2,344
704|**Total**
**£000**
671
7,359
(1,404)
3,048|
||8,970
704|**9,674**|
Page 40 of 45
## **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) in creditors
Exchange (losses) arising from retranslation of foreign branches & subsidiaries
Change in cash and cash equivalents due to exchange rate movements
**Net cash (used in)/provided by operating activities**
**Charity**
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
(Decrease) in debtors
(Decrease) in creditors
Exchange (losses) arising from retranslation of foreign branches & subsidiaries
Change in cash and cash equivalents due to exchange rate movements
**Net cash (used in)/provided by operating activities**|**2025**
2024
**£000**
£000
**1,089**
1,078
**127**
101
**(667)**
(253)
**(51)**
(59)
**29**
27
**(289)**
(242)
**(164)**
(320)
**(436)**
(214)
**(2)**
(39)
**5**
106|
||**(359)**
185|
||**2025**
2024
**£000**
£000
**1,037**
1,149
**127**
101
**(667)**
(253)
**(51)**
(59)
**29**
27
**(289)**
(242)
**(183)**
(380)
**(412)**
(212)
**(1)**
(29)
**(1)**
63|
||**(411)**
165|
Page 41 of 45
## **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**
4,411
(362)
(5)|**At end of year**
**£000**
**4,044**|
|---|---|---|
||4,411
(362)
(5)|**4,044**|
||**At start of year**
**Cashflows**
**Foreign**
**exchange**
**movements**
**£000**
**£000**
**£000**
4,184
(414)
1|**At end of year**
**£000**
**3,771**|
||4,184
(414)
1|**3,771**|
## **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 £559,000 ( _2024: £550,000_ ).
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 £42,000 _(2024: £52,000)_ .
Pension costs relating to the employees of the Institution’s subsidiaries IChemE in Malaysia and IChemE in New Zealand amounted to £7,000 _(2024: £6,000)_ .
## _**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 42 of 45
## **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:**_
||**2025**|2024|
|---|---|---|
||**%**|%|
|Discount rate|**5.45% pa**|5.45% pa|
|Inflation (RPI)|**3.15% pa**|3.45% pa|
|Inflation (CPI)|**2.65% pa**|2.90% pa|
|Pension increase (LP15)|**2.65% pa**|2.85% pa|
||**90% of the S3NA tables with CMI 2024**|90% of the S3NA tables with CMI 2023|
||**projections using a long-term**|projections using a long-term|
||**improvement rate of 1.25% pa. The**|improvement rate of 1.25% pa. The|
|Post-retirement mortality|**initial addition is 0.25% pa, and the half-life**
**parameter is 1 year.**|initial addition is 0.25% pa, the 2020
and 2021 weight parameters are 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|**2025**
2024
**£000**
£000
**2,689**
3,516
**3,029**
2,935
**1,768**
633
**56**
49|
|---|---|
||**7,542**
7,133|
Page 43 of 45
## **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|**2025**
2024
**£000**
£000
**7,542**
7,133
**(8,946)**
(8,920)|
||**(1,404)**
(1,787)|
## _**Amounts recognised in the statement of financial activities over the year:**_
|Interest on liabilities
Interest on assets
Total|**2025**
2024
**£000**
£000
**474**
456
**(387)**
(331)|
|---|---|
||**87**
125|
## _**Remeasurements over the year:**_
|(Gain)/loss on assets in excess of interest
Experience losses/(gains) on liabilities
Losses/(gains) from changes to demographic assumptions
(Gains)/Losses from changes to financial assumptions
Total
**_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|**2025**
2024
**£000**
£000
**(86)**
584
**45**
(269)
**37**
(162)
**(90)**
(1,116)|
|---|---|
||**(94)**
(963)|
||**2025**
2024
**£000**
£000
**7,133**
7,468
**387**
331
**376**
367
**(440)**
(449)
**86**
(584)|
||**7,542**
7,133|
The actual return on assets over the period was £473,000.
Page 44 of 45
## **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 loss/(gain) on liabilities
Changes to demographic assumptions
Changes to financial assumptions
Value of liabilities at end of the period
Actuarial gains/(losses)|**2025**
2024
**£000**
£000
**8,920**
10,460
**474**
456
**(440)**
(449)
**45**
(269)
**37**
(162)
**(90)**
(1,116)|
||**8,946**
8,920|
||**2025**
2024
**£000**
£000|
||**94**
963|
The annual contribution level for the period 1 February 2025 to 31 January 2026 was £377,000. This will be increased by CPI inflation of 3.4% in line with the Recovery Plan to £390,000 for the period 1 February 2026 to 31 January 2027.
Page 45 of 45