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2024-09-30-accounts

ANNUAL REPORT & ACCOUNTS To 30 September 2024

THE ROYAL BRITISH LEGION POPPY FACTORY LTD. TRADING AS THE POPPY FACTORY

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CONTENTS

GLOSSARY OF TERMS

AFCFT Armed Forces Covenant Fund Trust DMWS Defence Medical Welfare Service NHS National Health Service VPPP Veterans’ Places, Pathways and People programme HSJ Health Service Journal

A YEAR IN REVIEW
PERSPECTIVES FROM OUR LEADERSHIP TEAM 2
ANNUAL REPORT
OBJECTIVES 4
HIGHLIGHTS OF THE YEAR 6
VETERAN AND FAMILY SERVICES 8
PHILLIP: A NEW KIND OF SERVICE 10
OUR IMPACT 12
SERVICE IMPACT DATA 13
INSIDE THE POPPY FACTORY 16
PRODUCTION
2024		 20
FUNDING OUR WORK 22
CARL: POWERING FORWARD WITH CONFIDENCE 26
HELPING JANEY TO MAKE A FRESH START 28
FINANCIAL REVIEW 30
STATEMENT OF RESPONSIBILITIES OF THE COUNCIL 34
AUDITOR'S REPORT 36
FINANCIAL STATEMENTS 40
CHARITY DETAILS 56

ANNUAL REPORT

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POPPY FACTORY ANNUAL REPORT 2024

A YEAR IN REVIEW

A YEAR IN REVIEW Perspectives from our Leadership Team

AMANDA SHEPARD, CHIEF EXECUTIVE

Amanda leads day to day operations, making sure we deliver on our vision and strategy.

Securing work after leaving the Armed Forces can be incredibly difficult. Although most veterans transition well, others face barriers such as poor physical or mental health and homelessness. In recent times, it may have felt, for many, as if those barriers have been getting higher.

Our work as a specialist employment service for the Armed Forces community has never been needed more. Last year a record number, more than 1,000 veterans, received our employment support for the first time. We hit another record, with 551 veterans registering with our services.

testament to the real impact we are having by working alongside healthcare professionals.

Partnerships like this are an example of how we are delivering broader outcomes than just employment, but also health and wellbeing. Employment is life-affirming in more ways too, bringing confidence, connection with the community and a sense of purpose.

It was down to the hard work of our team, for which I am incredibly grateful. It was also helped by our drive to expand our services. One example is our Navigator service, which ran in more locations. It enabled us to reach those at the very start of their journey to employment too.

In the coming year, we will continue to double down on delivering these broader outcomes to help veterans and their families thrive. I am thankful to all the partners who work with us, and look forward to strengthening collaboration by taking the lead in delivering the Thrive Together programme.

Another factor was our continued collaboration, including with NHS partners, who referred more veterans to our services than ever before. Winning a Health Service Journal award is

ALISTAIR KETT, CHAIR

Alistair oversees our governance and board of trustees, so that our charity runs effectively and responsibly.

Since 1922, our factory and the poppies created here, have symbolised the story of our charity. Anyone who visited our Richmond headquarters in the last 12 months will have seen first-hand how busy we are. We welcomed visitor centre and VIP guests, met with partners and corporate volunteers, held staff and volunteer workshops and more. Thank you to everyone who worked so hard to make this happen.

All of this activity supports our mission today: employment support for the whole Armed Forces community. Over the year, we took huge strides in writing this modern chapter in our story – to reach more veterans and their families, in more ways and in more regions.

It was rewarding to see the charity’s plans for further development of our Veteran and Family Services bearing fruit. Hundreds of veterans and their family members, up and down the country, not only found employment but a new sense of purpose.

This wouldn’t have been possible without financial security. We are grateful for the generous backing of our military funders, trusts and foundations and corporate partners. By letting all of our office spaces and estate flats, we generated vital income to secure our services too.

My thanks go out to the hardworking team at The Poppy Factory, and to the veterans and family members who started new jobs or have taken positive steps towards employment. We look forward to building on this success story in the coming year.

SURGEON REAR ADMIRAL LIONEL JARVIS, PRESIDENT

Lionel is our charity’s lead ambassador, who also champions our unique role in Remembrance.

Global events in the last 12 months have shown once again how vital it is that we continue to acknowledge the sacrifices of all those who selflessly give their lives in service.

The Poppy Factory continued to be tremendously proud of its role in maintaining the Remembrance tradition. The hard work of our production team members was exemplary. Though poppies are most visible in November, our team worked throughout the year to create thousands of wreaths and poppies for memorial services across the UK, and beyond.

In our commitment to environmental sustainability, we started to use all-paper poppies in our wreaths. We worked closely with our partners at The Royal British Legion to overcome initial practical challenges. Just as the poppy itself has changed over time, we reflected on how our charity has evolved to meet the changing needs of veterans today.

We are proud and humbled that Her Majesty The Queen has agreed to continue in her role as our Patron, after a decade of support to the charity. In February, we were deeply honoured to join Her Majesty for a reception at Clarence House when we looked back on how much has been achieved over the last 100 years, in a deferred celebration of our centenary.

It was also an enormous privilege to have Her Royal Highness The Duchess of Gloucester, representing The Queen, attend the opening of the 2024 Field of Remembrance in the grounds of Westminster Abbey. We now look forward to 2026, when we will celebrate 100 years since moving to Richmond upon Thames.

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OBJECTIVES

OBJECTIVES

Our strategic aim is to support veterans with health conditions and their families on their journey towards employment. Our objectives are underpinned by data, continually reviewed to ensure the work of our charity is delivered effectively and the objectives are being met. Here are our objectives for 2023-24, and for the coming year.

STRATEGIC REVIEW

SUPPORTING VETERANS AND FAMILIES

In 2024/25 we will refresh our overall strategy to better reflect the breadth and depth of our impact and our outcomes with veterans and their families. Our strategic review objectives are to:

PARTNERSHIPS

MONITORING, EVALUATING AND IMPROVING

INCOME GENERATION

THOUGHT LEADERSHIP

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HIGHLIGHTS OF THE YEAR

HIGHLIGHTS OF THE YEAR REACHING MORE VETERANS THAN EVER

We’ve seen record numbers of veterans and their family members registering for our services, more than 1,100 overall. This increase follows our drive to reach more veterans through partnerships with other organisations and professionals who work with them.

We were delighted to be appointed as portfolio lead for Thrive Together (formally known as Veterans Places, Pathways and People) in London. We lead funded partners with the aim of building enduring, resilient networks and pathways to ensure veterans and their families receive timely and effective support.

ROYAL COMMITMENT

In May, we were deeply proud and honoured to announce that Her Majesty Queen Camilla had been confirmed as our Patron. The Queen became Patron of The Poppy Factory in 2013, visiting our historic Richmond home soon afterwards as The Duchess of Cornwall.

In the decade since, Her Majesty has been a steadfast supporter of our work. We are extremely thankful for her continued support as our Patron as we work to help many more veterans and family members on their journey towards employment.

HEALTHY PARTNERSHIP WITH NHS

We were delighted to win an HSJ (Health Service Journal) Award in November 2024, in recognition of our outstanding contribution to healthcare and health improvement for the Armed Forces community.

Among the veterans registered for our services, 4 in 5 have a mental health condition and 1 in 2 has a physical health issue. Yet back in 2020, fewer than 1 in 6 referrals came from the NHS. In 2021, we started working with NHS England and local NHS services to reach more veterans. Last year, NHS referrals had increased by nearly 200%, to 1 in 3.

By reaching more people, sooner, we’re helping more veterans and their families to improve their health and wellbeing. They can feel happier in themselves, more confident and more connected in their communities.

EXPANDING OUR REACH

In February, we launched Navigator Cymru with the support of the Armed Forces Covenant Fund Trust. It built on the success of our Navigator work to reduce isolation and loneliness, build confidence and create stability for veterans in London, Cheshire and Merseyside.

Navigator Cymru offers up to six months of person-centred support for veterans who live in Gwent and are experiencing isolation, loneliness and poor mental or physical health.

DOING VETERANS PROUD

In June, Pride Month, we reflected on the long journey to acceptance for LGBT+ members of the Armed Forces community. Between 1967-2000 there was a ban on homosexuality in the Armed Forces, for which the government has only recently apologised, after an independent review.

Over the years, many of those affected have struggled to find or stay in civilian employment. But as past wrongs are now being righted, we made sure that our life-changing support is accessible to everyone who needs it – encouraging veterans and their family members to register for our specialist employment support.

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POPPY FACTORYANNUAL REPORT 2024

VETERAN AND FAMILY SERVICES

VETERAN AND FAMILY SERVICES

With the ambition of our growing team, we are delivering more support to more veterans and their family members than ever across our expanded range of services – 1,124 people in 2023/24.

We met our ambition of reaching more veterans earlier in their journey to employment. We further extended employment services for family members who, in their search for employment, often have to juggle the responsibilities of caring for a veteran and young children.

More than a job

Specialist support and meaningful employment can be truly lifechanging, significantly improving confidence, financial security and health and wellbeing.

VETERANS EMPLOYMENT SERVICE

A record number of 973 veterans registered for our Veterans Employment Service. We increased our efforts to ensure more veterans, and other professionals working with them, knew about our specialist employment service.

services and how easy it was to refer veterans to us for expert employment support.

One third of our referrals came from the NHS, in a number of areas across England and Wales. Our partnership with GPs and mental health teams means they can strongly recommend our employment support to ex-Forces patients.

One example is the launch of a monthly online forum for professionals who also work with veterans. They learned more about our specialist

NEW – POPPY PATHWAYS

Following a successful trial in June 2024, we introduced a pilot programme called Poppy Pathways. It offered veterans a free work placement in The Poppy Factory.

NAVIGATOR SERVICE

In our work as a specialist employment charity, we know that many veterans experience loneliness and poor mental or physical health. Last year, 64% told us they felt isolated socially, with 30% needing support with insecure housing or homelessness.

Our specialist Navigator service helps veterans improve their health and wellbeing, by taking part in meaningful activities and connecting with others to become work-ready. We saw 45 new registrations this year, the first full year of our service.

During the year, we expanded our service into South Wales. We have recently secured funding to further expand this service into Birmingham, The Solent and London.

FAMILIES EMPLOYMENT SERVICE

We offer a dedicated family service with our partners The Ripple Pond. Half of the family members who come to us are already in employment. They need support to improve their job or find something new, to fit around caring for a family member who has served. Last year, we supported 91 people who wanted to improve their employment prospects. We saw 56 new family members registering and expanded our service by an additional practitioner, to help meet demand.

It was an opportunity to connect with others and gain hand-on experience with our production team. It also included support with CVs, job applications. to build confidence, learn essential skills and become more employment-ready.

A referral on to Andrew Pickersgill in our employment team helped John to continue moving forward. Initially John did some volunteering and then he secured a new job with Wirral Borough Council, transporting school children with disabilities.

Army veteran John Molleneux was referred to John is one of nine veterans Navigator in Merseyside who, last year, made the when he was battling to transition from the lowest escape alcohol addiction. point in their life to find Our Navigator, Pete Rhodes, secure employment, helped John improve his independence and mental wellbeing, to the happiness. “I feel great point where John could about myself and I’m happy take control of his housing with myself,” said John. difficulties and move into a new home.

Sarah needed to find a job with regular daytime hours and some flexibility.

Our Families Employment Specialist Sara Goody worked with Sarah to find suitable roles and to prepare for interviews. Sarah secured a job as a GP Link Worker for children and young people. “Sara was so passionate about being able to find me a new role and gave me so much encouragement,” said Sarah.

In 2001 Sarah’s son Kieran, a former Royal Marine, suffered a severe brain injury. He moved in with Sarah and because she cared for him in the evenings and at weekends,

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PHILLIP GORDON

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PHILLIP
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Between 1982 and 2004, Phillip Gordon served as an ordnance specialist in the British Army. He saw active service in Bosnia, Kosovo and Iraq. When Phillip left the Armed Forces, he found work in the logistics sector as a warehouse manager.

What seemed like a successful transition into civilian life came to a halt when Phillip developed posttraumatic stress disorder (PTSD). We supported him through difficult times, and now he is helping other veterans facing similar challenges.

TIME TO ADAPT

Phillip said: “I’m proud of my time in the Army. But I have PTSD from my service”. Our partners at NHS Veterans Wales supported Phillip when he first developed PTSD.

He reflected on how his mentor Damon, from NHS Veterans Wales, helped him in those early days. Damon organised a breakfast club which sounded simple, but it motivated Phillip to go out of the house every day. Damon introduced Phillip to wood carving. Phillip said: “It takes your mind off everything – you can just concentrate on the piece of wood you’re working on.”

MOVING FORWARD

It was Damon who put Phillip in touch with Kirsty, his Employment Consultant at The Poppy Factory. Phillip said: “Kirsty found me courses to go on and I threw myself into mental health first aid and learning about anxiety, depression, and wellbeing. I wanted to have the right skills to move forward.”

Whenever he wanted to talk, Kirsty was at the end of the phone. He felt he was talking to a good friend. She made Phillip feel he was the only person she was dealing with, even though she helped lots of other veterans. “She was brilliant and I can’t thank her enough,” Phillip said.

SERVING OTHERS

After his experience at The Poppy Factory, Phillip is well qualified for this job. “When I’m talking to the people I work with, I introduce myself as a veteran and I talk to them about my journey, which helps build up a bit of rapport.”

Having received Kirsty’s comprehensive support at The Poppy Factory, Phillip felt confident to move on. He secured a job as a housing support worker with the charity Alabaré, which supports veterans who are homeless.

He understands what they are going through and tries to break down the barriers that they’ve built and get them communicating. He said that the objective is to try to keep things moving forward.

He now helps veterans on the journey they need to take, until they’re able to get their own property. It’s not only about finding a house, Phillip helps veterans build resilience, confidence, skills and wellbeing through the charity’s Boots on the Ground programme.

BOND OF BROTHERS

Phillip was motivated to help others due to his own experience of PTSD and the support he received. When a colleague, who had been highly effective in his job began to withdraw, Phillip saw signs of PTSD. He stepped in and gave him help and support early on.

“It gave me a good feeling afterwards, I felt like I’d really helped and had influenced someone’s life in a positive way. With the right support, he came back to the way he had been before,” said Phillip.

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POPPY FACTORY ANNUAL REPORT 2024

OUR IMPACT

VETERANS EMPLOYMENT SERVICE

OUR IMPACT

THE BIG PICTURE 1 124 Veterans and Family Members , supported in total

Who came to us for support?

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Mental and
Under Between Over 50 Mental health Physical health physical High levels
30 years 30-49 years years condition condition condition of anxiety
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Average life satisfaction ONS index)

Demand for our service continues to grow New registrations:

Low 5.05 (7.45 Nationally)

445 498 531 552 2020/21 2021/22 2022/23 2023/24

1 in 3 Referred by the NHS

Outcomes: Financial stability, community and purpose

ACROSS OUR SERVICES Number of individuals supported

973 ment Service Veterans Employ

60 Navigator Service

91 Families Employment Service

552 319 121 8 31 23 New Jobs started – Training Supported in Started Undertook registrations 6% increase courses started education volunteering work highest roles placements/ number yet trials

65% 52% 60% 59% Improved in Improved Improved Improved job skills or stability aspiration and health and experience motivation wellbeing

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OUR IMPACT

NAVIGATOR SERVICE

Who came to us for support?

45 40% 85% 53% 41% 67% New service Physical Mental and Over 50 Mental health health physical High levels users years condition condition condition of anxiety

Referred by the NHS

50%

Average life satisfaction ONS index) Low 3.82 (7.45 Nationally)

Including our two partners NHS Veterans Wales and Cheshire and Wirral Partnership Foundation Trust.

Outcomes: Financial stability, community and purpose

73% 19% 9% 56% 72% Achieved their Transferred Have found work Improvement Improvement primary goals to our – of those who in housing in friends and for using the employment transferred to situation community service service our employment service

88% 88% 92% 92% Improvement Improvement Improvement Improvement in trust in identity and in use of time in managing and hope self esteem mental health

FAMILIES EMPLOYMENT SERVICE

Who came to us for support?

Have Exdependent Under 40 Between Over 50 Spouses Children Partners children years 30-49 years years

Unemployed for 1 in 5 over 1 year

51%

Referred by The Ripple Pond Our established partner

Average life satisfaction ONS index) Low 5.95 (7.45 Nationally)

Outcomes: Financial stability, community and purpose

56 46 4 New service Jobs started Started users or retained volunteering registered roles

90% 60% 65% 40% 75% Improved Improved Improved Improved Improved in 2+ of job skills or stability aspiration and health and their goals experience motivation wellbeing

Improved health and wellbeing

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INSIDE THE POPPY FACTORY

INSIDE THE POPPY FACTORY

The Poppy Factory is where our charity started and it is an important part of our heritage.

This year, we welcomed over 3,600 people through the doors of our visitor centre in Richmond upon Thames. They learned about the Remembrance tradition, the growth of our unique factory community and how it laid the foundation for the extensive employment service that we offer veterans and their families today.

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Eggleton. Denis joined a communications unit of the RAF and went on to serve at Scapa Flow, at air defence sites across England, in France after D-Day and in Germany as the war ended.

Since the 1920s, our charity has helped veterans with health conditions into employment. Today our factory team still works hard to make Remembrance wreaths that are laid in services around the world. Last year, they made around 75,000 wreaths and 120,000 large decorative poppies.

Some visitors were delighted to meet Denis in person too, when he made a special trip to The Poppy Factory. He reflected on his wartime experiences and remembered those whose own lives were cut short by conflict.

Visitors watched poppies being made, got handson with poppy-making and took the opportunity to explore our exhibition. This year, visitors could see important changes to our exhibition, including a historic letter written by our founder, Major George Howson, and a box of vintage 1930s silk flowers that were rediscovered in South Africa by a Richmond resident. Undoubted other highlights include the Royal wreaths that we designed and now produce for Their Majesties King Charles III and Queen Camilla, and His Royal Highness The Prince of Wales.

VIP VISITS

It was an honour to welcome two senior public figures to The Poppy Factory to mark Remembrance at the start and close of our financial year: The Mayor of London, Sadiq Khan, in November 2023 and the Secretary of State for Defence, John Healey, in November 2024. The two leaders were hosted by our Chief Executive, Amanda Shepard, and each met members of our production team, creating poppies and wreaths under the guidance of veterans and recording short films to acknowledge the contribution made by the team and the wider work of our charity, throughout the year.

INSPIRATIONAL VETERAN

In June, we ran a special discovery session to mark Armed Forces Week. Visitors watched a new film featuring 101-year-old RAF veteran Denis

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POPPY FACTORY ANNUAL REPORT 2024

INSIDE THE POPPY FACTORY

“It was a real privilege to visit The Poppy Factory and see the poppies and wreaths being made, and to appreciate all the effort and craftsmanship that contributes to these moments when our nation comes together each year.” Sir Trevor Brooking

of our production team, in November 2023. Alex is a life-long West Ham fan and a veteran of the Royal Green Jackets and French Foreign Legion.

The trio chatted to the team, tried their hand making poppies and helped to manufacture the three wreaths that were then hung at the London Stadium to commemorate all those lost in conflict at home and around the world. They included a wreath to remember the First World War service of the heroic West Ham Pals Battalion.

HAT-TRICK OF SUPPORT

A different set of VIPs also bookended the year as we welcomed the stars of West Ham United’s past, present and future, for annual visits to meet our factory team and pay tribute to our charity’s history and ongoing work.

Following in their footsteps, West Ham United’s first team players Jarrod Bowen and Max Kilman then paid a visit in November 2024, joined by star and former player Anton Ferdinand. This time, the experience of meeting Alex and the team and completing the club’s wreaths was captured on camera for the BBC’s The One Show, which broadcast a moving film at the end of October.

Sir Trevor Brooking, current first team star Ben Johnson, and Academy scholar, Ollie Scarles, were shown around by Alex Conway, a member

WHERE THE PAST… MEETS THE FUTURE

WHAT VISITORS DISCOVER

Visitors learn how the first injured veterans came to work at The Poppy Factory and helped build the Remembrance tradition. They hear how our charity has evolved to help today’s veterans find work too. Visitors also have the chance to craft their own wreaths and poppies.

Visitors can see how the essence of our work at The Poppy Factory has helped us grow into the employment service we are today. Now we support more veterans, who have served in more recent conflicts, to find work all over England and Wales. We help them find confidence, community and purpose too.

Visitor Centre Over Including in Numbers 3,600 117 40 Visitors Group Discovery Visits Sessions

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PRODUCTION 2024

PRODUCTION 2024

Ever since the 1920s, veterans in our factory team have worked hard all year round to make Remembrance wreaths that are laid in services around the world. Last year, our busy team made 75,000 wreaths by hand, which were bespoke to regiments, units and organisations.

and the foundation for our wider work – as an employment service, for veterans and their families, right across the country.

Poppies are emblems of Remembrance, and also symbols of renewal. For 2024, renewal took on a literal meaning. For the first time, our team used fully recyclable poppy petals to make wreaths. It was part of our, and The Royal British Legion’s, commitment to reducing carbon emissions and increasing sustainability.

THE FIELD OF REMEMBRANCE

The Poppy Factory organises the Field of Remembrance at Westminster Abbey every November to commemorate those who have lost their lives in the Armed Forces. On 7 November 2024, over 1,000 guests gathered for the opening of the Field of Remembrance by Her Royal Highness The Duchess of Gloucester, representing Her Majesty The Queen. More than 40,000 tributes were laid out with care, attention and respect.

Making wreaths continued to provide our production workers with meaningful employment and a unique role in the nation’s Remembrance. But it went beyond simply having a job. Being part of our team offered camaraderie, confidence and a sense of purpose. These are the very things that many veterans lose after leaving the Armed Forces.

One of our production workers, Alex, suffered with PTSD having served in the military at home and abroad for over 25 years. He has worked in our factory for seven years, making around 50 wreaths a day. Alex said: “The fact that I came to The Poppy Factory probably saved my life. I was spiralling downhill, it’s helped me massively.”

Thousands of crosses and symbols, with individual messages, combined in tribute to all those who gave their lives in the service of others. It is a tradition that was established in 1928 by the founder of The Poppy Factory, Major George Howson. He felt strongly that ordinary servicemen and women, and the public, should have a dedicated place to remember their loved ones. It was he who suggested using land outside Westminster Abbey, which is now this place of collective memorial.

Alex and other members of the team also played a key role in welcoming guests at our factory’s visitor centre. They not only demonstrated their wreath-making skills, but also supervised guests who wished to try their hand at wreath-making.

Offering veterans new opportunities at The Poppy Factory has always been at the heart of what we do. Today it is part of our proud heritage

We would like to thank our dedicated team of workers and volunteers for their hard work in ensuring this important tradition is upheld.

Production Work in Numbers

75,000 361 20+ 655,500 wreaths Royal and bespoke crosses and special wreaths tributes of all wreaths (on request) faiths and none 120,000 17

large decorative production workers including special wreath poppies makers worked on the order throughout the year

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FUNDING OUR WORK

FUNDING OUR WORK

The Poppy Factory supports veterans and family members on their journey towards employment for as long as it takes. With that commitment comes a fundraising challenge: to ensure that those services remain well-resourced and sustainable, with the opportunity to grow further as demand rises across diverse Armed Forces communities.

Our earned income is substantial thanks to combined contributions from our commercial and residential tenants on the Richmond estate, and through the visitor centre. This income covers our support and administrative costs, enabling us to focus on funding the Veteran and Family Services through grants from partner charities, companies, trusts and foundations, and through

donations from our supporters. As a result, all funds donated to The Poppy Factory have a direct impact for veterans and their families, helping them to change their lives.

We are grateful for all the funding, gifts in kind and other contributions from our partners and supporters in 2023-24.

MAJOR SUPPORTERS

GRANT FUNDING PARTNERS

MILITARY CHARITIES

We are proud to work closely and effectively with other military charities and grateful for the vital funding they provide. Our partners include the Army Benevolent Fund, who are providing major support towards our employment service for Army veterans and training grants to individual veterans accessing the service.

TRUSTS & LIVERY COMPANIES

Trusts and foundations provided vital contributions towards our veterans and families services this year, helping them overcome barriers to work, thrive in civilian jobs and re-connect with their communities. Once again, we were delighted to receive support from a wide range of supporters, towards our services as a whole or specific areas of work.

The Armed Forces Covenant Fund Trust continues to fund our work leading the Thrive Together programme (formerly Veterans’ Places, Pathways and People) in London, which aims to improve collaboration in the sector and build resilient networks of support for veterans with mental health needs. The Trust is also supporting our Families Employment Service and Navigator Service through its Reaching and Supporting Armed Forces Communities Programme.

TRUST SUPPORTERS

CORPORATE PARTNERS

Our Richmond headquarters was once again a focus of activity for our corporate partners in 2023-24, with many of our supporters choosing to take part in corporate volunteering sessions or hire our visitor centre and boardroom for off-site meetings and events. We are grateful for their boundless energy and enthusiasm, and for their important contributions towards the funding of our Veteran and Family Services. We were delighted to commence working with new corporate partner PA Consulting this year. PA are providing significant support towards our employment service, while contributing valuable volunteering and pro bono support to our team. We would particularly like to thank those partners who contributed substantial funds this year, including Salesforce, Bloomberg and TJC. Our thanks also go to other corporate partners including State Street for encouraging staff members to raise funds and volunteer their time in support of veterans and families.

We would also like to thank our friends in the Richmond-upon-Thames community, including Visit Richmond, Richmond Council, Be Richmond and the Museum of Richmond.

We’d like to thank all of our supporters, with special thanks to the following:

The Anson Charitable Trust Austin and Hope Pilkington Charity David King Charitable Trust Garfield Weston Foundation The G C Gibson Charitable Trust The Hodge Foundation John Scott Charitable Trust The Lancashire Foundation

The Lennox Hannay Charitable Trust The MacRobert Trust Moondance Foundation The Princess Anne’s Charities Trust Queen Mary’s Roehampton Trust The Tallow Chandlers’ Company Veterans’ Foundation

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FUNDING OUR WORK

FUNDRAISING CHAMPIONS

We are hugely grateful to all those supporters who chose to raise funds in groups or individually, and whose efforts helped veterans to change their lives through employment in 2023-24. Special thanks go to the team from CAF Rail UK and Newton Heath who climbed the Yorkshire 3 Peaks in September, and to the Master Locksmiths Association for holding a fundraising dinner.

RESPONSIBLE FUNDRAISING

Those who give funds to support veterans with health conditions through The Poppy Factory can be assured that we comply with the regulatory standards for fundraising. Our charity is registered with the Fundraising Regulator and we are committed to the Fundraising Promise and adherence to the Code of Fundraising Practice, which covers the requirements charities must follow as set out in the Charities Act 2016. All

direct fundraising is done by our own team – we do not outsource any of our activity to third parties. Several of our in-house fundraising team are members of the Institute of Fundraising. We do not target individuals in the street or through direct marketing. Any public fundraising is limited to voluntary donations, such as through our website or through occasional bucket collections carried out by our own staff and volunteers. We encourage our corporate partners, and

other organisations, groups and individuals, to organise their own fundraising events on behalf of The Poppy Factory. Our team provides resources, information and guidance to support these events as appropriate, to ensure that all activity falls within the Code of Fundraising Practice. No complaints regarding fundraising were received during the year.

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CARL ROBERTS

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POPPY FACTORYANNUAL REPORT 2024NUAL REPORT 2024
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CARL
POWERING FORWARD
WITH CONFIDENCE
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Former Sergeant Major Carl Roberts worked his way up the ranks in the Mercian Regiment and the Royal Electrical and Mechanical Engineers. He served around the world including in Northern Ireland, Iraq and Afghanistan.

CHALLENGING TIMES

As Sergeant Major, Carl held a high-ranking and respected role in the Army. He said: “There were a lot of challenging times in the Army, and some scary times serving as a sharpshooter.”

On leaving Service, he put his idea of setting up a training company into action. Everything was going to plan, but then he was completely thrown off course. He explained: “When I came out of the Forces I set up my own training company, but then Covid hit.”

When he left Service he started his own training company, but he experienced difficulties at work and at home. Carl found specialist help through our employment support and has now secured a rewarding new role. Read here how it’s transformed his life and his perspective.

It proved to be a pivotal moment. “That’s when things started to spiral out of control,” he said, “I started drinking more. I was bored and things just snowballed and got out of hand, and I lost a relationship.”

NEW CONNECTIONS

Carl was in and out of jobs in the construction industry. He was homeless when he contacted Op COURAGE, an NHS wraparound service

and safety at the SeAH Wind factory in Teesside, one of the biggest wind factories in the world. With skills and qualifications gained in the Army, Carl found he had all the qualifications required for the role.

which helps veterans with their needs including accommodation, their finances and also their mental health and physical health.

We work closely with the NHS to reach and support more veterans. It was through our connection with the NHS that Carl heard about The Poppy Factory, and he got in touch with us.

“I interact with a lot of different teams at work. I might have meetings with sub-contractors to see how we can improve welfare and wellbeing. A lot of the people on site get on with me, because of my background in the military, and my upbringing on a council estate also helps me connect with others,” he explained.

“At that point I’d been diagnosed with complex PTSD, and I’d had some specialist therapy which helped to clear things up. I knew I needed a sounding board and some help with CV writing. I needed to have more self-esteem, take care of myself, lay off drinking and stop overthinking,” said Carl.

“When I’m out on site and I see someone conducting a task incorrectly, I’ll stop and speak to them. I’ll take them away from the situation and get them to look at it through my lens, so they can understand the risk. It’s good to be able to give back some of the knowledge that I have.”

EMPLOYING SKILLS

Without Andrew’s support, Carl said he wouldn’t have known how to get started. “Employment support is a great facility that enables people like me to take the next step.” said Carl. “I’m enjoying the work, the money is good and the job is a perfect fit for my skills,” he added.

“Everything felt really hard until I started meeting Andrew, my Employment Consultant, and then he put everything into perspective,” Carl told us.

Through Andrew’s specialist support, Carl secured a job as a Principal Project Manager for health

VIEWPOINT: Our Employment Consultant

Andrew Pickersgill, who worked with Carl, said: “From our very first meeting it was clear to see Carl had quite a proactive mindset, yet was a little lost with his overall direction and lacking a little confidence. He responded swiftly to all the information, advice, and guidance provided from our first meeting and throughout – so positively that he secured employment just over a month after our first meeting.

“It was a pleasure to be able to help Carl obtain funding from the Army Benevolent Fund and provide the equipment he needed to start his new role. And, having reviewed things recently, it’s a real pleasure to see how happy Carl is with his job, and with life in general. It’s a testament to his proactivity, hard work and commitment.”

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HELPING JANEY

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HELPING JANEY

Janey had been going through a difficult break-up with her partner, a former soldier, when her work also became very stressful. The Ripple Pond offered the support network she urgently needed and The Poppy Factory helped her rebuild her confidence enough to move forward. Now Janey is thriving in a new job and embracing new challenges.

A DIFFICULT SEPARATION

Janey was with her former partner, who had served in the Army, for a long time. He had been suffering from complex PTSD before they met, and their relationship became very difficult. “He wouldn’t face things, he would just run away from them,” said Janey. “It got really bad and I kept pushing him to go and get help, but he didn’t want it.

“My partner’s uncle became ill and when he passed away, it pushed him over the edge. He would go into strange moods and wouldn’t talk to me for weeks on end. It put a huge emotional strain on our relationship. One day he just slammed the phone down on me, and that was the last I heard from him.”

Janey later had brief contact with her former partner again. Before that, she became very worried for his safety and had few people to turn to for support. It was then that she was first put in touch with The Ripple Pond.

Janey said: “I was worried sick in case something bad had happened. I rang up someone for help and they put me in touch with The Ripple Pond, who have been fantastic. They put me on the group chat and they would check in on me regularly to make sure I was OK.”

NEW SUPPORT NETWORK

The wealth of shared experience offered by The Ripple Pond community also gave Janey a huge boost when she faced a difficult time in her job. “Having that support and seeing what others were going through was so helpful,” she said. “I felt that some of those girls had been through so much, and it’s great to know there are people there who you can talk to and who understand what you’re going through.

“I’d been having a rough time at work. I was in my old administration job for 16 years, then things started to become a lot more difficult. It felt like I was having to do my own job and take on everyone else’s work as well. Things got so bad that I nearly had a breakdown.”

The close working partnership between The Ripple Pond and The Poppy Factory made it very easy for Janey to find further one-to-one support from Sara Goody, one of our Families Employment Specialists.

“She’s been fantastic,” said Janey. “I could talk to Sara about everything that I was going through and she was always so calm whenever I got upset.”

REBUILDING CONFIDENCE

Sara was able to help Janey see a new way forward and consider her options for a fresh start. They worked together to look for opportunities with a new employer.

Janey said: “At the start of 2024 I decided to leave my job because I just couldn’t do it anymore. Sara helped me through everything. We looked at my CV and I built a lot more self-

In the summer I started a new job as a Business Support Coordinator with Kent County Council. I work with people who are being discharged early from prison. My new manager is so supportive, always encouraging me to take on training courses and telling me I’m a real asset to the team.

“I love what I do now. I’ve never worked with a nicer bunch of people. I would never have got this job without Sara’s help. My confidence had been at an all-time low, and she helped me build it back up again.”

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POPPY FACTORY ANNUAL REPORT 2024

FINANCIAL REVIEW

FINANCIAL REVIEW

FINANCIAL PERFORMANCE

Summary

A strong financial performance over the last 12 months enabled us to continue developing and expanding our national Veteran & Family Services, fulfilling our ambition to reach more members of the Armed Forces community than ever before. The successful delivery of these services, as highlighted in the Impact section of this report, accounted for the highest proportion of expenditure on charitable activities at £1,888k (2023 £1,727k).

All fundraised income is used exclusively for the delivery of our Veteran & Family Services, with total income from grants and other donations at £892k this year. (2023 £892k). Our central costs and a contribution to the cost of our national services also came through income from our property portfolio, including commercial lets of flats and office space on our Richmond upon Thames estate, and through income from our visitor centre (detailed in our Income section below).

Our Veteran & Family Services remain a fundraising priority for 2025 as we seek to reach more members of the Armed Forces community, in regions where our support is most needed.

The net expenditure before gains for the year is a deficit of £344k (2023 £667k). This includes £393k of depreciation charge in the year. The total income for the charity was £4.6m (2023 £4.5m) and the total expenditure for the year was £4.9m (2023 £5.2m).

At year-end, the level of the General Funds for the charity had improved to £2.4m. (2023 £2.2m)

Outlook

budget for the year to September 2025, in order to further expand the services we offer and provide life-changing support to greater numbers of veterans and family members. While this investment will be underwritten by our reserves, we will continue to seek increased grants and donations and higher net return from our estate.

Income

The total income for the charity was £4.6m (2023 £4.5m) and the total expenditure for the year was £4.9m (2023 £5.2m).

The income from charitable activities was £1,666k (2023 £2,081k) and was made up of:

The total income from donations and legacies was £892k (2023 £892k) providing essential funding to further the work we do with our Veteran and Family Services.

The total income from other activities was £91k (2023 £114k) This was generated through activity in the visitor centre, enabling members of the public to make a contribution towards our Veteran and Family Services while learning about the history and growth of the charity, and its continued role in Remembrance.

The total income from investments, including property, was £1,951k (2023 £1,456k) and included £964k Office income, £968k Open market residential property income.

Expenses

Total expenditure for the year was £4,944k (2023 £5,211k)

The expenditure on charitable activities was £3,534k (2023 £3,813k), and comprised:

The expenditure on raising funds was £1,410k (2023 £1,398k) and comprised:

Net expenditure before gains

The net expenditure before gains for the period, including £393k of depreciation charges, was £344k, compared to the total net expenditure before gains for the period to 30 September 2023 of £667k.

Cash and liquid investments

The overall cash balance increased by £157k to £1,420k, with £109k of the increase from operating activities, and £47k of the increase from investment activities.

Including other investments, the total cash and liquid investments held was £3,041k.

INVESTMENTS

Fixed assets

The fixed assets include the main factory office buildings and residential flats on the Richmond

upon Thames estate that are let on a beneficiary basis, with an estimated historical value of £255,001.

Investments

Our investment properties comprise 47 flats that are let on the open market, with rents set on professional advice from the Charity’s letting agents. The objective is to ensure a sustainable and increasing income from these properties to cover our central costs and to contribute more to our Veterans and Families Services.

Other Investments

Funds not required in the short to medium term are invested partly in deposit accounts over a suitable period with an institution with an investment grade ‘A’ credit rating.

During the year, funds were invested with Close Brothers Asset Management (CBAM). The total funds increased by £174k to £1,621k. The return-oninvestment objective is CPI plus 3% over the medium term, which was substantially exceeded in the year to 30 Sept 2024, with a total 12% gain in the year (September 2024 CPI was 1.7%). This is the strong investment performance for some years. The performance of our investment funds will continue to be monitored against industry benchmarks. The carrying value of investments is adjusted to market value at year-end.

GENERAL FUNDS AND RESERVES

The Council approved the reserves policy, which is reviewed annually. The General Reserve is to

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POPPY FACTORY ANNUAL REPORT 2024

FINANCIAL REVIEW

enable The Poppy Factory to continue to deliver its services in the event of an unexpected fall in income.

The General Reserve should be maintained to cover: budgeted beneficiary employment and indirect costs for the factory for 9 months following the balance sheet date; a sum to cover building emergencies on the estate, to ensure that it remains revenue-producing; and 6 months planned costs for employment support, to ensure that commitments can be honoured in the event of a significant reduction in income.

The current reserves target is £2.2m, and the free reserves are £2.4m. With planned investment in frontline services (and therefore a deficit), the general fund is expected to be brought into line with the reserves target within 1 year.

As at 30 September 2024, the total funds of the charity were £30.0m (2023: £35.3m). After taking into account of the revaluation of investment properties and investments, the charity had unrestricted funds of £29.7m (2023 £35.0m). Of the £29.7m, £27.3m (2023: £32.8m) is revaluation reserve and designated funds. The revaluation reserve of £23.2m (2023: £28.3m) is related to that part of the residential estate classified as investment property and described above.

PRINCIPAL RISKS AND UNCERTAINTIES

The Poppy Factory maintains a robust risk management process, where risks are identified and classified according to the likelihood and the potential impact of the risk event. For each risk, the appropriate risk responses are determined. The changing risk landscape is monitored, the risk register is reviewed each month by the Executive team and related risks are reviewed by the relevant committees. The key risks are presented to the Council at each meeting.

The key risks identified for The Poppy Factory relate to:

People safety and wellbeing – Our clients may face complex personal circumstances, which impact on their health and wellbeing and at times may pose a risk to themselves and others. We have a comprehensive suite of procedures to ensure clients are supported in a safe and appropriate manner with referrals to specialist organisations where required. Our staff team have access to a wide variety of support to help with any challenges they may face either with clients or individually to limit the risk and ensure we offer effective support.

Sustainable, optimised estate income – The Poppy Factory holds office space and residential units rented out on a commercial basis. In the current office market, if notice is given by tenants, there may be a gap in occupancy and a fall in income. We continue to explore alternative use of space options to offices and are reviewing residential options to ensure future optimised, sustainable income.

Unexpected drop in fundraised income – increasing pressure on Grantmakers could result in an unexpected drop in Fundraised income. The Poppy Factory reviews and executes grant funder stewardship while researching new supporters and building our corporate partner income.

Macroeconomic environment – major geopolitical events, particularly escalations in current wars, have the potential to impact the UK economy and the energy market. This could adversely affect our charity through higher costs or by limiting our ability to raise voluntary funds. The Poppy Factory continually reviews the fundraising strategy to better mitigate the potential impacts of a recession or other shock.

Cyber security – there is a risk that hackers gain unauthorised access to The Poppy Factory’s IT systems and install malware or ransomware that could result in access to data being inhibited, or our IT systems being compromised. We continue to invest in cyber security measures. Cyber Essentials Plus accreditation is renewed annually with regular backups taken to ensure a quick recovery from cyber-attack.

GUARANTEES

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of its winding up. The total number of members at 30 September 2024 was 12 (2023: 40). As part of our ongoing governance reviews, the number of members is now limited to Council members only which was agreed and approved at the AGM that was held on 21 March 2024.

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STATEMENT OF RESPONSIBILITY TO THE COUNCIL

POPPY FACTORY ANNUAL REPORT 2024

STATEMENT OF RESPONSIBILITIES OF THE COUNCIL

INTRODUCTION AND STATEMENT OF COMPLIANCE

a formal recruitment and selection process which includes a review of their Curriculum Vitae and interviews with members of the Council.

The Council (whose members are also trustees under charity law and directors under company law) presents its report for the year ended 30 September 2024. This includes the directors’ report and the strategic report under the 2006 Act, together with the audited financial statements for the year.

The Trustees would like to thank Julius WolffIngham, who resigned as a Trustee on 7 November 2024, for his service as Trustee and his contribution to The Poppy Factory.

The charity details set out on the inside back cover and the information provided on pages 4-35 form part of this report. The report has been prepared in accordance with current statutory requirements including Companies Act 2006, the Memorandum and Articles of Association and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the United Kingdom and Republic of Ireland (FRS 102).

Induction of Council members is carried out by the CEO prior to the new member’s first Council meeting. This encompasses:

STRUCTURE, GOVERNANCE AND MANAGEMENT

Legal Constitution

The Council confirms that it has due regard to the provisions of section 17 of the Charities Act 2011 and has referred to the guidance contained in the Charity Commission’s general guidance on public benefit, both when reviewing The Poppy Factory’s aims and objectives and also in planning activities.

The Royal British Legion Poppy Factory Limited (The Poppy Factory) is a charitable company limited by guarantee, incorporated on 11 March 1925 and registered as a charity on 11 May 1964.

Objects and Activities

The company was established under a Memorandum of Association. New Articles of Association were adopted on 13 April 2012 and amended by special resolutions on 23 March 2017 and on 21 March 2024.

Our Articles of Association set out that we “organise, establish and manage schemes for the purpose of assisting men and women who have been members of the Forces of the Crown and primarily those of them who have been disabled”. The Poppy Factory does this by providing an employment service, and a Navigator service, to veterans with health conditions and their families, across England and Wales. We also provide employment at our factory in Richmond, where men and women with health conditions who are connected to the Service have been making Remembrance products for over 100 years.

Governance

The members of the Council during the year are shown on the inside back cover. Council members equate to directors in Companies Act terms and trustees in charities act terms.

New Council members are appointed as necessary, in order to give a wide breadth of experience to the organisation. They have been recruited through

Management

The Council meets four times a year or when required. The following committee structure has been approved by the Council:

Veteran and Family Services Committee; Finance and Risk Committee; Estate Committee; Income Generation and Communications Committee; and People, Pay and Culture Committee.

The committees and various working groups all report to the Council meetings as part of the governance structure. The Council agrees the strategic aims of the charity, authorises the budget and approves the expenditure. The day-to-day running of the charity is delegated to the CEO, Ms Amanda Shepard, who was appointed by the Council.

Remuneration of Key Management Personnel The Trustees consider that the members of the Council and the Senior Management Team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day-to-day basis. All Council members give their time freely and no Trustee received remuneration in the year. Details of Trustees’ expenses are disclosed in note 20 (no Trustee expenses were incurred in the year) and related party transactions are disclosed in note 20 of the accounts. The remuneration of the Senior Management Team and all staff is reviewed annually and normally increased in accordance with average earnings to reflect a cost-of-living adjustment. In view of the nature of the charity, the Council members benchmark against pay levels in other charities. The remuneration benchmark is the mid-range for similar roles in similar-sized charities.

The Council is responsible for preparing the Financial Statements in accordance with applicable laws and regulations. Company law requires the Council to prepare financial statements for each financial year. Under that law, the Council has elected to prepare the financial statements in accordance with the United Kingdom Generally

Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of the affairs of the charitable company and of the surplus or deficit for that period. In preparing these financial statements, the Council is required to:

The Council is also responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable it to ensure that the financial statements comply with the Companies Act 2006. The Council is also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each of the members of the Council is aware at the time the report is approved:

This annual report, which includes the directors' report and the strategic report, was approved by the Council and signed on its behalf by:

A. Kett

Chairman

Date: 24/01/2025

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POPPY FACTORY ANNUAL REPORT 2024

AUDITOR’S REPORT

AUDITOR’S REPORT

OPINION

We have audited the financial statements of The Royal British Legion Poppy Factory Limited for the year ended 30 September 2024, which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows 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 Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other

ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

In auditing the financial statements, we have concluded that the Trustees’ use of 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 charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

OTHER INFORMATION

The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained during the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information we are required to report that fact. We have nothing to report in this regard.

OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion, based on the work undertaken in the course of the audit:

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

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

We have nothing to report in respect of the following matters where the Companies 2006 requires us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the Statement of Responsibilities of the Council, set out on page 35, the Trustees (who are also directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative to do so.

AUDITOR’S RESPONSIBILITY FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.

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POPPY FACTORY ANNUAL REPORT 2024

AUDITOR’S REPORT

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

IDENTIFYING AND ASSESSING RISKS RELATED TO IRREGULARITIES

We assessed the susceptibility of the charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charitable company by discussions with trustees and updating our understanding of the sector in which the charitable company operates.

Laws and regulations of direct significance in the context of the charitable company include The Companies Act 2006, and guidance issued by the Charity Commission for England and Wales.

record of any breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve noncompliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business.

We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud. There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

USE OF OUR REPORT

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Date: 27/01/2025

Helen Wilkie

(Senior Statutory Auditor) for and on behalf of Saffery LLP 71 Queen Victoria Street London EC4V 4BE Statutory Auditors

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

AUDIT RESPONSE TO RISKS IDENTIFIED

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company’s

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

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POPPY FACTORY ANNUAL REPORT 2024

FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL ACTIVITIES

(Incorporating an income and expenditure account)

Year Ended 30 September 2024 Notes Unrestricted Designated Restricted 2024 Total 2023 Total
£ Building Fund £ £ £ £
INCOME FROM:
Charitable activities 2 1,416,266 — 250,195 1,666,461 2,081,207
Donations and legacies 3 200,249 — 691,429 891,678 892,302
Other trading activities 4 90,637 — — 90,637 114,438
Investments, including property 5 1,950,021 — 1,163 1,951,184 1,456,260
Total income 3,657,173 — 942,787 4,599,960 4,544,207
EXPENDITURE ON:
Charitable activities 6
Veteran & Family Services 1,002,222 127,308 758,390 1,887,920 1,727,068
Other, including Appeal Order 1,343,488 148,038 154,658 1,646,184 2,085,869
2,345,710 275,346 913,048 3,534,104 3,812,937
Raising funds 6
Donations and legacies 159,422 — — 159,422 164,225
Other trading activities 100,396 117,279 — 217,675 217,583
Investments, including property 1,032,795 — — 1,032,795 1,016,335
1,292,613 117,279 — 1,409,892 1,398,143
Total expenditure 3,638,323 392,625 913,048 4,943,996 5,211,080
Net income/(expenditure) before 18,850 (392,625) 29,739 (344,036) (666,873)
gains and losses on investments
Other recognised gains/(losses)
Revaluation of investment property 11 (5,136,000) — — (5,136,000) 1,495,000
Gains/(losses) on investments 18 173,832 — — 173,832 82,469
Net income/(expenditure) (4,943,318) (392,625) 29,739 (5,306,204) 910,596
Transfers between funds — — — — —
Net movement in funds (4,943,318) (392,625) 29,739 (5,306,204) 910,596
Total funds brought forward 18 30,538,459 4,469,786 270,471 35,278,716 34,368,120
Total funds carried forward 25,595,141 4,077,161 300,210 29,972,512 35,278,716

BALANCE SHEET AT 30 SEPTEMBER 2024

Notes 2024 2024 2023 2023
£ £ £ £
FIXED ASSETS
Tangible fxed assets 10 4,077,161 4,469,787
Investment properties 11 23,179,000 28,315,000
Other investments 12 1,620,704 1,446,872
TOTAL FIXED ASSETS 28,876,865 34,231,659
CURRENT ASSETS
Stock 13 147,374 98,044
Debtors 14 143,859 229,480
Short-term deposits 664,670 649,785
Cash at bank and in hand 699,750 586,594
TOTAL CURRENT ASSETS 1,655,653 1,563,903
CURRENT LIABILITIES
Creditors: amounts falling due within one year 15 (560,006) (516,846)
NET CURRENT ASSETS 1,095,647 1,047,057
NET ASSETS 17 29.972,512 35,278,716
FUNDS OF THE CHARITY 18
Restricted funds 300,210 270,471
Unrestricted funds
Revaluation reserve 23,179,000 28,315,000
Designated funds 4,077,161 4,469,787
General funds 2,416,141 2,223,458
29,672,302 35,008,245
TOTAL FUNDS 29,972,512 35,278,716

These financial statements were approved by the Council of The Royal British Legion Poppy Factory Limited, Company Number 00204405 (England and Wales) and signed on its behalf by:

The notes on pages 43 to 54 form part of these accounts.

All the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Details of income and expenditure by fund for 2023 are given in note 22.

A Kett Chairman Date: 24/01/2025

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POPPY FACTORY ANNUAL REPORT 2024

FINANCIAL STATEMENTS

CASH FLOW STATEMENT

POPPY FACTORY ANNUAL REPORT 2024
CASH FLOW STATEMENT
2024 Total 2023 Total
£ £
Cash flows from operating activities 109,093 (410,629)
Cash flows from investing activities
Dividends and interests 18,948 13,427
Sale /(Purchase) of Investments 28,516 12,801
Net cash provided by/(used in) investing activities 47,464 26,228
Change in cash and cash equivalents 156,557 (384,401)
Cash and cash equivalents at the beginning of the reporting period 1,263,122 1,647,523
Cash and cash equivalents at the end of the reporting period 1,419,679 1,263,122
ANALYSIS OF CHANGES IN NET DEBT
1 October Cash Flows 30 September
2023 £ £ 2024 £
Cash and cash equivalents
Cash 1,263,122 156,557 1,419,679
Total 1,263,122 156,557 1,419,679

NOTES TO THE FINANCIAL STATEMENTS

1. ACCOUNTING POLICIES

Expenditure

Expenditure is recognised in the period to which it relates. Expenditure includes attributable VAT which cannot be recovered. Expenditure is allocated to the activity where the cost relates directly to that activity.

General Information

The Charity is a private company, limited by guarantee, registered in England and Wales. The registered office and company details are shown on page 56.

Support costs are administrative costs, including the provision of services for the benefit of Appeal Order staff and are charged as incurred based on the specific usage; where an allocation is necessary, an appropriate basis such as staff cost, staff numbers or floor space has been used depending on the nature of the expenditure.

Basis of Preparation

The accounts have been prepared in accordance with 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) (Second edition) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note and they are rounded to the nearest £.

Costs of Raising Funds

Expenditure on raising funds relates to the costs incurred by The Charity in raising funds for the charitable work. This includes costs associated with investment properties, rented office space, running the visitor centre and raising voluntary income.

Fixed Assets

NOTES TO THE CASH FLOW STATEMENT

NOTES TO THE CASH FLOW STATEMENT
2024 Total 2023 Total
£ £
RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
Net income/(expenditure) before gains and losses on investments (344,036) (666,872)
Decrease/(increase) in debtors 85,621 (26,782)
Decrease/(increase) in stock (49,330) (21,620)
Increase/(decrease) in creditors 43,160 (89,038)
Dividends and interests (18,948) (13,427)
Depreciation 392,626 407,110
Net cash generated by/(used in) Operating activities 109,093 (410,629)
Analysis of cash and cash equivalents
Short term deposits 664,670 649,785
Cash at bank and in hand 699,750 586,594
Cash held as part of investment portfolio (note 10) 55,259 26,743
1,419,679 1,263,122

The charity meets the definition of a public benefit entity under FRS 102.

Going Concern

Following a review of our financial position, reserve policies and plans, the Council consider that there are no material uncertainties about the charity’s ability to continue as a going concern for the foreseeable future, being a period of at least a year from the date the accounts are signed.

Income Recognition

Income from donations and legacies is included in full in the statement of financial activities when the Charity is entitled to the income, the amount is measurable, and it is likely to be received. Volunteer time is not included in the financial statements. Unrestricted income for the Appeal Order matches the unrestricted expenditure for that activity.

Depreciation is provided at rates calculated to write down the cost or revalued amount of tangible fixed assets, other than land, to their estimated residual value evenly over their expected useful lives. The depreciation rates in use are as follows:

Per annum

Furniture & Equipment 15% - 34% Plant 20% Building Refurbishment 3% - 10%

Items of equipment are capitalised where the purchase price exceeds £5,000 except in the case of computer equipment which is expensed in the year. Expenditure related to the maintenance of the estate is expensed as incurred. Depreciation costs are allocated to activities based on the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Grants are included in the statement of financial activities in the year in which they meet the conditions of recognition.

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POPPY FACTORY ANNUAL REPORT 2024

FINANCIAL STATEMENTS

2. CHARITABLE ACTIVITIES INCOME

Freehold land and buildings include occupied excess office space and beneficiary flats. There is no depreciation charged on land, with an estimated historical cost of £255,001.

Operating Leases

Rentals for assets held under operating leases are charged to the Statement of Financial Activities as they become payable.

Fund Accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources receivable or generated for the objects of the charity.

Designated funds are unrestricted funds allocated by the Council for specific purposes.

Fixed Asset Investments

Investment property is shown at the market value. The difference between historical cost and valuation is included within the revaluation reserve. The value of investment property is reviewed every year with any gain/(loss) for the year being taken to the statement of financial activities.

Other investments are shown at market value at the balance sheet date, with any gain or loss for the year being disclosed in the notes and taken

Stocks

Stock is stated at the lower of cost and net realisable value. Cost is determined on a first in first out basis and includes transport and handling costs. Net realisable value is the price at which stock can be sold in the normal course of business after allowing for the costs of realisation.

Debtors

Short-term debtors are measured at transaction price, less any impairment.

Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party, and the amount due to settle the obligation can be measured or estimated reliably.

Financial Instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments, including trade and other debtors and creditors, are initially recognised at transaction value and, subsequently, are measured at their settlement value.

Pensions

The charity makes pension contributions to The Poppy Factory Personal Pension plan.

Critical Accounting Judgements and Estimates

In preparing these accounts, management has made judgements, estimates and assumptions that affect the application of the charity’s accounting policies and the reported assets, liabilities, income and expenditure and the disclosures made in the accounts. Estimates and judgements are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The key estimate is the valuation of the investment properties.

The significant accounting estimates with a significant risk of a material change to the carrying value of assets and liabilities within the next year are:

Unrestricted Restricted 2024 Total 2023 Total
£ £ £ £
Appeal Order 1,294,783 — 1,294,783 1,519,146
London VPPP Lead Income — 250,195 250,195 435,602
Benefciary flats 121,483 — 121,483 126,459
1,416,266 250,195 1,666,461 2,081,207

TPF is the portfolio lead for The Armed Forces Covenant Fund Trust’s (AFCFT) London Veterans – Places, Pathways and People programme (London VPPP), for which TPF has received a total of £250,195 in the year, and against which there were £154,658 of disbursements to partners. (See note 6.)

3.DONATIONS AND LEGACIES INCOME

3.DONATIONS AND LEGACIES INCOME
Unrestricted Restricted 2024 Total 2023 Total
£ £ £ £
Other grants and donations 200,249 691,429 891,678 892,302
200,249 691,429 891,678 892,302
The following restricted funds were received from AFCFT:
Family Programme £80,000
Navigator Programme £50,000
Places, Pathways and People (VPPP Midlands + Southeast) £16,510
These restricted funds received in the year were delivered, with
the exemption of £5,000 for the Family Programme and £12,230
or the Navigator Programme, remaining unspent at year-end.
The following restricted funds were received from the NHS:
Project funded by NHS England £31,950
The following restricted funds were received in support of the North West
Navigator service: Veterans Foundation £25,000
COMPARATIVE NOTE FOR 2023
Unrestricted Restricted 2024 Total
£ £ £
Other grants and donations 278,565 613,737 892,302
278,565 613,737 892,302
4. OTHER TRADING ACTIVITIES INCOME
2024 Total 2023 Total
£ £
Visitor Centre 90,637 96,106
Corporation Tax Rebate (MGTR) — 18,332
90,637 114,438

In the current year, all Other trading activities income is unrestricted.

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POPPY FACTORY ANNUAL REPORT 2024

FINANCIAL STATEMENTS

5. INVESTMENT INCOME, INCLUDING PROPERTY

Unrestricted Restricted 2024 Total 2023 Total
£ £ £ £
Offce income 963,885 — 963,885 514,732
Open Market Property 968,351 — 968,351 928,101
Bank Interest 17,785 1,163 18,948 13,427
Total 1,950,021 1,163 1,951,184 1,456,260

In the prior year, £513 of Investment Income was restricted.

6. TOTAL EXPENDITURE

6. TOTAL EXPENDITURE
Staff Costs Other Costs Depreciation Support Costs 2024 Total 2023 Total
£ £ £ £ £ £
Charitable activities
Veteran and Family Services 1,625,828 20,750 127,308 114,034 1,887,920 1,727,068
London VPPP Lead Disbursements — 154,658 — — 154,658 350,451
Appeal Order 569,585 652,009 148,038 73,174 1,442,806 1,673,245
Benefciary Flats 1,594 42,454 — 4,672 48,720 62,173
2,197,007 869,871 275,346 191,880 3,534,104 3,812,937
Raising funds
Fundraising costs 108,114 51,308 — — 159,422 164,225
Visitor Centre 22,832 77,564 117,279 — 217,675 217,583
Offce Rental Costs 14,327 389,247 — 34,357 437,931 585,011
Open Market Property costs 19,461 557,813 — 17,590 594,864 431,324
164,734 1,075,932 117,279 51,947 1,409,892 1,398,143
2,361,741 1,945,803 392,625 243,827 4,943,996 5,211,080

The depreciation charge of £392,625 in the year relates to the building refurbishment.

TPF is the portfolio lead for AFCFT’s London Veterans - Places, Pathways and People programmes, for which there was £154,658 of disbursements to partners. (2023 £350,451).

COMPARATIVE NOTE FOR 2023

Staff Costs Other Costs Depreciation Support Costs 2023 Total £ £ £ £ £

Staff Costs
£		 Other Costs
D
£		 epreciation
S
£		 upport Costs
£		 2023 Total
£
Charitable activities
Veteran and Family Services 1,523,450 — 132,521 71,097 1,727,068
London VPPP Lead Disbursements — 350,451 — — 350,451
Appeal Order 610,186 834,083 154,099 74,877 1,673,245
Benefciary Flats 2,128 56,005 — 4,040 62,173
2,135,764 1,240,539 286,620 150,014 3,812,937
Raising funds
Visitor Centre 42,268 54,825 120,490 — 217,583
Offce Rental Costs 9,004 553,953 — 22,054 585,011
Open Market Property costs 25,789 394,709 — 10,826 431,324
Fundraising costs 139,287 24,938 — — 164,225
216,348 1,028,425 120,490 32,880 1,398,143
2,352,112 2,268,964 407,110 182,894 5,211,080

SUPPORT COSTS

SUPPORT COSTS
2024 Total 2023 Total
£ £
IT Hardware, Software and Services 100,919 69,446
Legal and Professional Services 13,115 12,982
Other support Costs 129,793 111,797
243,827 194,225

Included above are the support costs, which have been allocated per the accounting policy (note 1). £29k of governance costs are included within the support costs.

7. NET INCOME FOR THE YEAR

7. NET INCOME FOR THE YEAR
2024 Total 2023 Total
£ £
This is stated after :
Depreciation 392,626 407,110
Auditors’ remuneration:
— audit 23,255 22,119
— other services — 4,681

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POPPY FACTORY ANNUAL REPORT 2024

FINANCIAL STATEMENTS

8. STAFF COSTS AND NUMBERS

8. STAFF COSTS AND NUMBERS
2024 Total 2023 Total
£ £
Staff costs were as follows:
Salaries and wages 1,995,572 1,989,758
Social security costs 187,285 185,962
Pension contributions 178,884 176,392
2,361,741 2,352,112
The number of employees whose emoluments during the year exceeded £60,000 were:
2024 No. 2023 No.
£60,001 — £70,000 — 1
£70,001 — £80,000 2 2
£80,001 — £90,000 1 1
£90,001 — £100,000 1 —

The average number of staff employed was 61 (2023: 63) and the average number of employees (full-time equivalent) during the year was as follows:


(full-time equivalent) during the year was as follows:
2024 No. 2023 No.
Estate 1.0 1.0
Appeal Order 15.9 18.8
Veteran and Family Services 29.2 27.6
Fundraising and Communications 2.9 5.0
CEO and Support 1.8 1.4
Average number of employees FTE 50.8 53.8

Key management personnel are the Senior Management Team listed on page 64. The total remuneration of key management personnel for the year to 30 September 2024 was £484k (2023: £433k)

9. TAXATION

As a charity, The Royal British Legion Poppy Factory Limited is exempt from tax on income and gains falling within Part 11 of the Corporation Tax Act 2010 and Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges arose in the year (2023: £nil).

10. TANGIBLE FIXED ASSETS

Building Freehold land Plant Furniture & Total
Refurbishment and property Equipment
£ £ £ £ £
Cost or valuation
At 1 October 2023 5,185,837 1,601,619 439,684 226,894 7,454,034
At 30 September 2024 5,185,837 1,601,619 439,684 226,894 7,454,034
Depreciation
At 1 October 2023 1,033,441 1,346,618 439,684 164,504 2,984,247
Charge for the year 361,994 — — 30,632 392,626
At 30 September 2024 1,395,435 1,346,618 439,684 195,136 3,376,873
Net book value
At 30 September 2024 3,790,402 255,001 — 31,758 4,077,161
At 30 September 2023 4,152,396 255,001 — 62,390 4,469,787

The net book value of freehold property relates to land value and is not subject to further depreciation.

11. INVESTMENT PROPERTY

11. INVESTMENT PROPERTY
2024 2023
£ £.
Market value at the start of the year 28,315,000 26,820,000
Revaluation (5,136,000) 1,495,000
Market value at the end of the year 23,179,000 £28,315,000

Our investment properties comprise 47 residential flats that are let on the open market. The accounts reflect the Trustees’ best estimate of the market value of the flats at the balance sheet date. The valuation is inherently subjective, as it is based upon assumptions and estimations, which may prove to be inaccurate.

The assumptions used to value the properties have been refined this year following an independent review of the fair value of the full residential estate. In estimating the value of the flats at the balance sheet date, the Trustees have estimated their value assuming vacant possession. The Trustees have then applied a discount of up to 20% to the estimated value of each flat, to derive their best estimate of the amount that an investor would be willing to pay for the flats at the balance sheet date, taking into consideration the existing tenancies. No such discount was applied in the prior year. This more prudent estimate reduces the estimated value of investment property value by £5.1m.

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POPPY FACTORY ANNUAL REPORT 2024

12. OTHER INVESTMENTS

12. OTHER INVESTMENTS
2024 2023
£ £
Market value at the start of the year 1,420,129 1,364,917
Net (disposals)/additions (28,516) (12,288)
Gain/(loss) on investments 173,832 81,956
1,565,445 1,420,129
Cash held as part of the portfolio 55,259 26,743
Market value at the end of year 1,620,704 1,446,872
2024 2023
£ £
Investments comprise:
Equities 1,125,379 964,114
Fixed Interest 248,883 289,346
Alternatives 191,183 166,669
Cash 55,259 26,743
Market value at the end of the year 1,620,704 1,446,872

13. STOCK

13. STOCK
2024 2023
£ £
Raw materials 147,374 98,044
14. DEBTORS
2024 2023
£ £.
Trade debtors 15,669 121,974
Other debtors 9,066 –
Prepayments and accrued income 119,124 107,506
143,859 229,480
FINANCIAL STATEMENTS
15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£ £.
Trade creditors 48,872 39,937
Accruals 67,677 101,332
Deferred income 186,030 163,633
Wages and holiday pay accrual 25,322 28,544
Taxation and social security 46,905 47,322
Pension contributions 23,255 21,345
Amounts due to The Royal British Legion 57,987 54,283
Other 103,958 60,450
560,006 516,846

The full amount of deferred income brought forward is released in the year. The deferred income relates to Open Market rent paid monthly in advance and Office rent paid quarterly in advance.

16. OPERATING LEASES

At 30 September 2024 the total commitments under non-cancellable operating leases was £nil (2023: £nil).

The Poppy Factory acts as a lessor with its offce tenants.
2024 2023
£ £
Total income due to The Poppy Factory as a lessor with its offce tenants:
Income due in less than 1 year 492,178 518,173
Income dues for 1 to 5 years 1,194,530 1,240,583
Total 1,686,708 1,758,756

17. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Restricted Revaluation Designated General Total
funds funds funds funds funds
£ £ £ £ £
Tangible fxed assets — — 4,077,161 — 4,077,161
Investment property — 23,179,000 — — 23,179,000
Other investments — — — 1,620,704 1,620,704
Net current assets 300,210 — — 795,437 1,095,647
Net assets at the end of the year 300,210 23,179,000 4,077,161 2,416,141 29,972,512

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POPPY FACTORY ANNUAL REPORT 2024

FINANCIAL STATEMENTS

COMPARATIVE NOTE FOR 2023

COMPARATIVE NOTE FOR 2023
Restricted Revaluation Designated General Total
funds funds funds funds funds
£ £ £ £ £
Tangible fxed assets — — 4,469,787 — 4,469,787
Investment property — 28,315,000 — — 28,315,000
Other investments — — — 1,446,872 1,446,872
Net current assets 270,471 — — 776,586 1,047,057
Net assets at the end of the year 270,471 28,315,000 4,469,787 2,223,458 35,278,716

18. MOVEMENTS IN FUNDS

18. MOVEMENTS IN FUNDS
Gains/
1 October (Losses) and 30 September
2023 Income Expenditure Transfers 2024
£ £ £ £ £
Restricted funds
Amenities and benevolent fund 78,561 1,163 — — 79,724
Veteran and Family Services restricted fund 191,910 941,624 (913,048) — 220,486
Total restricted funds 270,471 942,787 (913,048) — 300,210
Unrestricted funds
Investment property 28,315,000 — — (5,136,000) 23,179,000
Designated funds
Fixed assets fund 4,469,787 — (392,626) — 4,077,161
General funds 2,223,458 3,657,173 (3,638,322) 173,832 2,416,141
Total unrestricted funds 35,008,245 3,657,173 (4,030,948) (4,962,168) 29,672,302
Total funds 35,278,716 4,599,960 (4,943,996) (4,962,168) 29,972,512

COMPARATIVE NOTE FOR 2023

COMPARATIVE NOTE FOR 2023
Gains/
1 October (Losses) and 30 September
2022 Income Expenditure Transfers 2023
£ £ £ £ £
Restricted funds
Amenities and benevolent fund 78,048 513 — — 78,561
Veteran and Family Services restricted fund 152,672 1,049,339 (1,010,101) — 191,910
Total restricted funds 230,720 1,049,852 (1,010,101) — 270,471
Unrestricted funds
Investment property 26,820,000 — — 1,495,000 28,315,000
Total revaluation reserve 26,820,000 — — 1,495,000 28,315,000
Designated funds
Fixed assets fund 4,876,897 — (407,110) — 4,469,787
Planned maintenance fund 500,000 — — (500,000) —
Total designated funds 5,376,897 — (407,110) (500,000) 4,469,787
General funds 1,940,503 3,494,355 (3,793,869) 582,469 2,223,458
Total unrestricted funds 34,137,400 3,494,355 (4,200,979) 1,577,469 35,008,245
Total funds 34,368,120 4,544,207 (5,211,080) 1,577,469 35,278,716

Restricted funds:

Unrestricted funds:

19. STAFF PENSION FUNDS

The charity made contributions of £178,884 (2023: £176,392) to the Poppy Factory’s Personal Pension plan.

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POPPY FACTORY ANNUAL REPORT 2024

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20. RELATED PARTY TRANSACTIONS

The Royal British Legion is the charity’s major customer. TRBL funds a contract with the charity against an agreed budget with any surplus/deficit adjusted at the end of the financial year following changes in order volume or variance in costs. The total amount of income recognised during the year was £1,294,783 (2023: £1,519,146) in respect of the Appeal Order. At the year-end, £57,987 was payable to TRBL (2023: £54,283 payable by TRBL).

Total Donations made by Trustees to The Poppy Factory in the year was £nil (2023: £nil).

Council members do not receive any remuneration, but they are but are eligible for reimbursement of expenses. No expenses were reimbursed in 2024, or 2023.

There were no other related party transactions in the year, nor in 2023.

21. CAPITAL COMMITMENTS

At 30 September 2024, the charity had no capital commitments. (2023: £nil)

22. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITY

(Incorporating an income and expenditure account)

(Incorporating an income and expenditure account)
Year Ended 30 September 2023 Notes Unrestricted Designated Restricted 2023 Total
£ Building Fund £ £ £
INCOME FROM:
Charitable activities, including appeal activities 2 1,645,605 — 435,602 2,081,207
Donations and legacies 3 278,565 — 613,737 892,302
Other trading activities 4 114,438 — — 114,438
Investments, including property 5 1,455,747 — 513 1,456,260
Total income 3,494,355 — 1,049,852 4,544,207
EXPENDITURE ON:
Charitable activities 6
Veteran and Family Services 934,897 132,521 659,650 1,727,068
Other, including Appeal Order 1,581,319 154,099 350,451 2,085,869
2,516,216 286,620 1,010,101 3,812,937
Raising funds 6
Donations and legacies 164,225 — — 164,225
Other trading activities 97,093 120,490 — 217,583
Investments, including property 1,016,335 — — 1,016,335
1,277,653 120,490 — 1,398,143
Total expenditure 3,793,869 407,110 1,010,101 5,211,080
Net income/(expenditure) before (299,514) (407,110) 39,751 (666,873)
gains and losses on investments

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POPPY FACTORY ANNUAL REPORT 2024

CHARITY DETAILS

NAME OF CHARITY

The Royal British Legion Poppy Factory Limited

CHARITY NUMBER 25348

COMPANY NUMBER 204405

SENIOR MANAGEMENT TEAM

Amanda Shepard, Chief Executive

Debbie Boughtflower, Director of Operations Mark Louw, Finance Director Charlotte Dymock, Senior HR Business Partner Jeff Short, Director of Production and The Estate

REGISTERED OFFICE AND OPERATIONAL ADDRESS

20 Petersham Road, Richmond, Surrey, TW10 6UR

PATRON

Her Majesty The Queen

PRESIDENT

Surgeon Rear Admiral Lionel Jarvis CBE KStJ FRCR DL

VICE PATRONS

Dr Geraldine Strathdee CBE MRCPsych Brigadier Marc A J McH Overton TD DL VR

COUNCIL MEMBERS

Alistair Kett (Chair)

Cliff Dare MBE FRICS (Vice Chair)

Linda Costello

Major General Tim Hodgetts CB CBE KHS OStJ DL

Martin Hodgson

Matthew Hubbard

Dr Sridevi Kalidindi MBBS BSc (Hons) FRCPsych PhD CBE

AUDITOR

Saffery LLP, 71 Queen Victoria Street, London EC4V 4BE

INVESTMENT MANAGERS

Close Brothers Asset Management, 10 Exchange Square, Primrose Street, London EC2A 2BY

BANKERS

Barclays Bank Plc. PO Box 13 8 George Street, Richmond TW9 1JU

Bank of Scotland The Mound Edinburgh EH1 1YZ

Close Brothers Savings 10 Crown Place London EC2A 4FT

SOLICITORS

Russell-Cooke LLP 2 Putney Hill Putney London SW15 6AB

Simon Taylor

Rachael Taylor-Jenkins, appointed on 19 January 2024

Andrew Wishart

Julius P H S Wolff-Ingham OBE resigned on 7 November 2024

Brian Worrell

Designed by The Cutting Edge tcecreative.co.uk

56

The Poppy Factory 20 Petersham Rd, Richmond TW10 6UR, London www.poppyfactory.org