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2025-03-31-accounts

Annual Report and Accounts 2024- 2025 Hospice Grow> Formerly St Barnabas Hospices Isussexl Ltd

Contents

Contents
Page
Legal and Administrative Information 3-4
An Introduction from our Chief Executive 5
Trustees’ Report incorporating the Strategic Report 6-23
Statement of Trustees’ Responsibilities 24
Independent Auditors’ Report 25-28
Consolidated Statement of Financial Activities 29
Consolidated Balance Sheet 30-31
Charity Balance Sheet 32-33
Consolidated Cash Flow Statement 34
Notes to the Accounts 35

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd) Annual Report and Accounts 2024-25

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Legal and Administrative Information

Senior Leadership Team

Amanda Fadero, CEO (resigned Apr 2025) John Headley, Chief Financial Officer (resigned Jul 2025) Lisa Barrott, Chief of Nursing & Care Becki Jupp, Deputy CEO/Chief Commercial Officer Clare Thompson, People Director Katie Cotton, Director of Philanthropy & Communications Kathleen Houghton, Service Director, St Barnabas Rachel Paisley, Director of Public Fundraising & Retail (resigned Sep 2025) Michael Barford, Director of Transformation (resigned Nov 2024) Gill Brooks, Service Director, Martlets (resigned Feb 2025) Mandy Piper-Killick, People Director (resigned Feb 2025 Simone Ali, Medical Director Martlets * Replaced by Stuart Palma (from Apr 2025) *Replaced by Cathy Heard (from Sep 2025)

The Trustees

Mike Rymer, Chair (resigned Jul 2025) William (Barry) Egan, Deputy Chair Rosalind Britton, Treasurer (resigned as Treasurer Oct 2024) Karen Blatchford Jill Carnie Anthony Clark Rebecca Crook (resigned Oct 2024) Steven Johnson, Treasurer (from Oct 2024) Tony Moss Stuart Palma (resigned Jan 2025) David Rennie Daniel Rennie-Hale Ian Sellwood Ruth Taylor Richard Painter Emma Symes Isha Simonds Replaced by Ruth Taylor and Jill Carnie as Co-Chairs (from Jul 25)

Registered address

St Barnabas House, Titnore Lane, Worthing, West Sussex BN12 6NZ

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Principal bankers

NatWest Bank PLC 5 Broadwater Street East Worthing West Sussex BN14 9AB

Solicitors

DMH Stallard LLP Griffin House 135 High Street Crawley West Sussex RH10 1DQ

Girlings 35-41 Stourside Place Station Road Ashford Kent TN23 1PP

Investment advisors

W1M Wealth Management Ltd 16 Babmaes St London SW1Y 6AH

Auditors

Kreston Reeves Audit LLP 9 Donnington Park 85 Birdham Road Chichester West Sussex PO20 7AJ

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An Introduction from our Chief Executive

For Southern Hospice Group, this has been a year of new beginnings as we begin the work to cement our new, sector-leading identity following the merger of Martlets with St Barnabas House and Chestnut Tree House.

These past few months have also represented great change for me, as I joined the organisation as Chief Executive, after holding roles at NHS England and NHS Sussex Integrated Care Board (ICB). That experience gave me valuable insight into the health and care sector, and an understanding of the vital role that hospice care plays within that system. What I have seen for myself across all three of our sites since joining, only strengthens my commitment to our newly formed Southern Hospice Group – now the largest local hospice charity in the UK - and its future.

Deeply empathetic and caring people are the backbone of our organisation. I’ve seen firsthand how teams consistently go above and sometimes far beyond, to ensure individuals and families are receiving the care they want and deserve, where and when they need it. This unwavering focus on placing children, adults, and their families at the heart of all we do is a fundamental principle that I know we all share. Our new collective identity will help us bring compassionate hospice care to even more people within our communities and allow us to influence and advocate for those communities at national levels.

As we look back over the past financial year, I would like to take this opportunity to thank our colleagues, supporters and volunteers for the extraordinary dedication they have shown. We know the sector faces unprecedented challenges, with at least a fifth of UK hospices forced to cut services in 2024 [Hospice UK] and 70% reporting deficit budgets. The difficult financial environment, sectorwide staff shortages and increased demand for our services can make it feel that we are being squeezed from all sides.

But despite these external pressures, the time I have spent getting to know our organisation and our people makes me feel very optimistic about the future. Our primary belief remains that those facing life-limiting conditions deserve the highest standards of care and support, and we will be there for them. This principle will be our unwavering guide as we shape the future of the Group and crucially, its ongoing sustainability.

Stuart Palma Chief Executive, Southern Hospice Group

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Trustees’ Report incorporating the Strategic Report

The Trustees present the Annual Report together with the audited financial statements for the year 1 April 2024 to 31 March 2025.

The Trustees confirm that the Annual Report and financial statements of the charitable company comply with current statutory requirements, requirements of the charitable company’s governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to all charities preparing their accounts in accordance with the financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Since the charitable company qualifies as large under section 382, the strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Director’s Report) Regulations 2013 is included.

The Trustees have complied with their duty under Section 17 of the 2011 Charities Act and have referred to the Charity Commission guidance on public benefit. The main activities undertaken to further the charity’s purposes for the public benefit are detailed in this Annual Report.

This overview of our work under ‘Strategic Objectives 2024-25’, along with our ‘Financial Review’ on page 14 and ‘Risks and Challenges’ on page 13, constitutes the Strategic Report.

Strategic objectives 2024-25

Following the announcement of the merger at the end of 2023-24, a refreshed set of strategic objectives were developed. Below is a summary of our progress towards them.

We will provide excellent care through continuous improvement and collaboration.

Across our adult hospices, we saw more than 3,500 people and their families throughout the year.

Chestnut Tree House received a donation from Lifelites of accessible technology to improve the services we provide to our children, young people and families. This included an Eyegaze to support our children and young people with their communication needs; a PODS Sensory Tent; and a Soundbeam, a piece of technology that allows children and young people with limited control, mobility or dexterity to play music. We also received a new VR headset to enable children and young people with complex needs to explore new environments and discover new worlds. As part of the Stars bereavement suite at Chestnut Tree House, the Stars Garden was refurbished with funding from BUPA, providing a private outdoor space for bereaved families. A new cinema and media room was also installed at Chestnut Tree House, with the equipment and installation funded by Together for Cinema. Work also started on the kitchen garden, due to be completed in 25/26.

Quality improvement, education and research continue to underpin our ability to provide excellent care. Over the past year, St Barnabas took part in the Hospice UK Extending Frailty Care programme and piloted a frailty pathway as part of the Living Well service. This culminated in a poster presentation and workshop at the Hospice UK conference in November 2024. Colleagues from

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Martlets also presented a poster at the Hospice UK conference, showcasing their work on using the Human Factors tool in the investigation of medication incidents.

We have established Clinical Nurse Specialist Development posts as a joint enterprise between the clinical and education teams at St Barnabas House. This has incorporated the development and revision of the role and associated support, direct clinical support in practice from the Education Team and one-to-one supervision. The Development Framework was presented as a poster at the 13[th] World Research Congress of the European Association of Palliative Care in Barcelona May 2024. The nurses who commenced this pathway have now successfully attained permanent Clinical Nurse Specialist roles. Development posts have been continued and include nurses and allied health professionals.

The Clinical Educator has worked with clinical managers to augment the competency and proficiency of staff across the inpatient unit and community services. We have developed an increasingly flexible approach to meet identified needs for individuals and teams. This necessitates a varied approach integrating clinical and classroom teaching alongside coaching and ‘expert’ supervision.

We continue to provide student placements. In 2024/25 we supported 65 students.

The Education Team experienced a significant restructure towards the end of 2024. We are developing new ways of working for 2025 onwards to fully support the clinical teams across Southern Hospice Group in delivering excellent palliative and end of life care for the community we serve.

We will support those that need us.

In 2024/25, Southern Hospice Group initiated the Clinical Integration Programme to support the delivery of merger priorities focused on developing consistent clinical services which are equitable, productive, and financially sustainable. A programme of work has been established and is underway, consisting of three defined work programmes pertaining to services and workforce; data, business intelligence and IT systems; and partnerships and clinical strategy. The scale and ambition of this work reflect our commitment to building a consistent, equitable, and sustainable model of clinical care across Southern Hospice Group. With continued focus and resource in 2025/26, this programme has the potential to significantly improve clinical service delivery, workforce support, and system collaboration - ultimately enhancing outcomes for the patients and families we serve.

Chestnut Tree House hosted a series of new youth groups at Rowans Hospice in Waterlooville to enable young people on our caseload in the West of our catchment area to participate in our activities.

Chestnut Tree House hosted date nights throughout the year for parents and carers whilst we cared for their children and siblings.

We will build a financially sustainable organisation.

Following the merger, cost savings have been realised from the restructure of support functions (Fundraising & Communications; Finance; People Services; Quality, Education & Research; Estates & Facilities).

Towards the end of 2024/25, the adult hospices piloted the introduction of low-intensity nurse-led beds which are funded by the NHS Continuing Healthcare (CHC) Fast-Track End of Life pathway. The

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additional beds were opened at the Martlets and St Barnabas In-Patient Units (IPUs) to support the delivery of improved outcomes for patients and their families, and the wider health and social care system in Sussex by enabling patients to die in their preferred place and by improving discharge pathways from hospital. Crucially, this has provided a financially sustainable way for the adult hospices to open more beds and support more people who need our services.

We will create a culture that enables staff and volunteers to thrive.

We aim to create a supportive, safe, and open workplace. We know that change takes time, and following the merger, we prioritised the review of our structures and roles to ensure clarity and efficiency within our teams. Alongside this we established our employee forum to ensure as we work through this change our workforce is kept informed.

We delivered significant pieces of work including systems integration for efficiency and consistency across the organisation, and a pay and benefits review that supports the merging of our workforce. Aligning our policies and benefits is the first step in supporting the Group as we create a workplace culture that reflects the best of both merged organisations.

Our new Volunteer Portal was integrated across both organisations, ensuring the information that volunteers and managers need for their roles is more accessible. Our volunteers are an important part of the organisation, and this platform is a key part of our commitment to help volunteers become confident, effective and successful in their roles.

Review of the year

Our merger

The merger between St Barnabas Hospices and Martlets is now almost completed, with just a couple of legal processes remaining at the end of the year. As part of the merger process the newly formed group of St Barnabas House, Chestnut Tree House and Martlets has changed its name to Southern Hospice Group.

Ownership of The Martlets Hospice Limited has been completed with just the transfer of the lease outstanding at the end of the year but subsequently completed. This transfer will enable us to strike off The Martlets Hospice Limited from Companies House and merge our two organisations under one registered charity number with the Charity Commission.

With the change of name to Southern Hospice Group, we also changed the name of our trading entity to Southern Hospice Trading Limited allowing us to transfer Martlets Trading Co Ltd, which is formed of Martlets retail stores and was a subsidiary of The Martlets Hospice Limited, into this new wholly owned subsidiary.

Martlets Care Limited, which is a domiciliary care business, operating in Brighton and Hove, has been transferred to Southern Hospice Group as a wholly owned trading subsidiary, and the name has also been changed to Southern Hospice Group Home Care Ltd.

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The remaining legal processes are transfer of one retail lease from Martlets Hospice to Southern Hospice Group and the transfer of Martlets Hospice lease to Southern Hospice Group, both have been completed post year-end.

All employees from Martlets have been legally moved (TUPE) across to Southern Hospice Group, and all group employees are now on Southern Hospice Group contracts.

As part of the merger, we are aligning systems to enable day to day processes to be completed efficiently. The finance system has already been merged, with all accounting being completed on one cloud-based system, and the merger of our fundraising databases are in progress. Our telephone and IT systems are in progress, and all employees have been moved to Southern Hospice Group email addresses.

St Barnabas House

2024-25 saw an extension of services provided to patients and their families – with an increase in IPU beds and new bereavement support groups that allow grieving friends and families to connect and support each other. The focus on bereavement continued in November with bereaved father and Strong Men charity founded Efrem Brynin joining us to provide a talk entitled “Breaking the Silence: Men’s Grief and Mental Health.”.

In December, our Light Up a Life event took place at Worthing Assembly Hall, providing an opportunity for local people to gather to remember loved and ones and celebrate the joy they brought to our lives.

When our Vice President – Olympic gold medallist Sally Gunnell – was invited to guest-edit BBC Radio Sussex, she invited Deputy CEO Becki Jupp along to discuss hospice funding – a valuable opportunity to increase awareness in our communities.

Martlets

2024 saw the unveiling of the newly refurbished hospice building in an official opening event attended by the Lord-Lieutenant of East Sussex, Andrew Blackman. The hospice incorporates two inpatient wards with 14 en-suite rooms, a family room and a cafe. Landscaped gardens and sensory spaces formed part of the work, as well as a memory garden for patients and families to use.

The refurbishment theme continued with the upgrades to our London Road shop, which was given a contemporary feel to entice shoppers. The opening event achieved coverage on BBC Radio Sussex and South East, as well as The Argus, with Norman Cook and Mayor of Brighton & Hove, Mohammed Asaduzzaman joining to cut the ribbon.

Chestnut Tree House

The hospice underwent several improvements during the year, to upgrade the facilities and services offered to children, young people and their families. Works included refurbishment of bedrooms and bathrooms in our newly decorated “Gruffalo Wing”, raising ceilings and installing new hoisting systems, and a new soft playroom and sanctuary space.

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A partnership with other local care providers has allowed for the creation of a new specialist paediatric palliative care service – COAST – that allows children and families to access specialist support when they are facing the end of life, crucial support previously unavailable to children in Sussex.

The children and young people at the House continued to enjoy a range of activities delivered by the team and our partners, including a magical winter wonderland put on by Hobbycraft and Together for Short Lives for their Christmas advertising campaign, and a once-in-a-lifetime DJ session from celebrity support Norman Cook, better known as Fatboy Slim.

Clinical quality

Our primary focus is always based upon the provision of consistently high-quality, safe and effective care for those who need us. During 2024/25 this has remained the case. Quality assurance has continued to be central to our delivery of a merger that allows us to build a more sustainable organisation and to improve access to care for our communities.

Good levels of incident and near miss reporting of safety related events is a good safety measurement, indicative of confidence in a just culture. In recognition of this, during the year, we prioritised the alignment of our legacy incident reporting systems and developed an integrated patient safety incident response framework. We will continue to prioritise the implementation of these in 2025/26.

There was a total of 986 incidents reported across the organisation during 2024/25. 669 of these were reported by adult services, 185 incidents reported by children’s services and 132 incidents reported by non-clinical services. There were no reported Never Events during the year. Similar to national trends, medicines-related incidents is our highest reported category. Our Medicines Management Group provides oversight of medicines optimisation, including the proportionate response to any emerging themes.

We have aligned our clinical complaints policy to ensure systems are standardised across the organisation. The number of formal clinical complaints we received remained low (13). The themes from these primarily related to unmet expectations and miscommunication. Our response to this includes a review of our service information resources and revision of our referral processes. We continued to receive high numbers of recorded compliments (373).

Our infection control standards have remained high. During the reporting year there were no cases of MRSA, E. coli, Pseudomonas or Klebsiella bacteraemia. There were no acquired cases of Clostridium difficile infection (CDI) and there was no evidence of employee-to-patient or patient-toemployee related transmission of Covid-19.

Our improvement priorities for 2025/26 are captured on our Quality Improvement Plan. They relate to quality improvement areas driven by a) Best Practice standards, including national guidance and audit outcomes; b) Lessons identified through learning from incidents, complaints and patient experience themes; c) performance data analysis.

During 2024/25 we developed a Clinical Integration Programme to help us promote consistency and equity of service across the local communities we serve and to optimise our operating models to

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support us to do more with the resources we have. Delivery of our clinical integration programme is central to our 2025/26 quality objectives.

Our annual quality account 2024/25 provides further details of our quality achievements and improvement plans.

Fundraising

The fundraising context continues to be a challenging one: continued inflation places pressure on our communities, who continue to be our greatest source of income by a significant margin. Public Fundraising once again encountered challenges with lower-than-expected Face-to-Face recruitment, an area of fundraising that is heavily relied upon for Lottery and Regular Giving donations across the charity sector. Cash donations continued to follow the sector trend of fewer people donating, but those that did donate, gave more generously with average gifts tracking marginally higher than previous financial years. Hospice led events were strategically significantly reduced in this financial year. With the focus on fewer events the team was able to increase year-on-year participants and, as a result income for the St Barnabas flagship event Night to Remember raised almost £69,000, supported by the introduction of a new, accessible two-mile route. Meanwhile Chestnut Tree House’s art trail, The Big Hoot, engaged families from across Sussex and further afield to celebrate the hospice’s 21[st] birthday and raise more than £150,000 for children’s hospice care. Those within our community, fundraising on our behalf, had a strong year reaching income targets for the adult hospices. However, fewer fundraising activities within East Sussex for Chestnut Tree House resulted in less income than hoped.

Our major donors, trusts/foundations and corporates have seen a successful financial year despite the challenging fundraising context. With investment in the development of some of our closest relationships our donors continued to give and, in some cases, increase their support as we navigated our way through the merger. Trusts and foundations saw a particularly successful year despite the ever-increasing challenges within the grant making world, where revisions of programmes and pauses on application submissions have made the success rates of this fundraising stream one of the most challenging the sector has ever seen. A seven-figure gift from an existing trust relationship enabled us to record over a 100% increase on this income stream compared to the previous year.

Both Martlets and Chestnut Tree House held their annual gala balls, raising £157,000 and £163,000 respectively.

It was a healthy year for legacies, seeing a 212.8 uplift compared to the previous year. The hospices took part in their first ever tri-hospice legacy marketing campaign: Hospice UK’s “This is Hospice Care”. The national campaign, supported by many hospices across the country, aimed to raise awareness of hospice services and educate people about the importance of Gifts in Wills.

In 2024/5, the St Barnabas Hospices (Sussex) Ltd Lottery generated £1,793,779 from entry sales, with 17% spent on prizes and expenses and 83%, £1,489,190 spent directly on the work of St Barnabas Hospices.

Following the merger, our Retail operation now consists of 34 shops and two retail distribution centres for the group, geographically positioned as far west as Havant and as far east as Eastbourne. The retail charity sector continues to face significant challenges with consumer behaviour trends

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moving ever more towards selling items via online sales platforms before resorting to donating unsellable, poor-quality items, and the collapse of the RAG trade. As an organisation, we have not been immune to these challenges and as a result Retail income failed to meet budget in this financial year.

The majority of the Group’s fundraising is managed in house, although we do work with professional fundraising agencies in some cases where it is more cost-effective to do so. Due diligence is conducted with any new supplier, and training and mystery shopping are in place to ensure that third-party practices are in line with our own values, particularly in relation to ethical practices when working with potentially vulnerable people. This year saw our continued membership with the Fundraising Regulator, and we abide by the direct marketing and fundraising codes of practice. We received 21 complaints about fundraising during this period.

Support Services

Following the merger of the two hospice organisations, we have taken a comprehensive review and restructure of support functions to streamline operations. Departments such as Finance, IT and Fundraising & Communications have been integrated across the hospices to improve efficiency, align objectives and provide a consistency of delivery.

The Group also reviewed systems and processes to consolidate activity, assessing existing systems across both organisations and integrating or procuring joined-up platforms and tools that harmonise activity, improve visibility and accountability and avoid duplication. Payroll, accounting, e-learning and risk reporting systems, along with associated processes, have now been consolidated and are in operation across all Group staff, increasing efficiency, reducing costs and aligning colleague activity.

Looking Forward

In 2025/26, Southern Hospice Group (SHG) will focus on delivering the second year of its merger business case following the successful merger of Chestnut Tree House, Martlets, and St Barnabas House in 2024/25.

Our strategic and corporate objectives for the 2025/26 are designed to support our priorities of delivering safe and effective services across our catchment areas whilst moving toward long-term financial sustainability.

Strategic Objectives:

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Corporate Objectives:

Our Business Plan for 2025/26 focuses on growing and diversifying income; productivity and efficiency; and service transformation. This will be delivered using our corporate objectives as a framework.

Support and develop our people:

We will:

Grow pathways and opportunities with partners: We will:

Deliver services that are effective, efficient and caring through Clinical Integration: We will:

Establish our new organisation:

We will:

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Develop a plan for financial sustainability: We will:

Key Risks and Mitigations

Risk management plays a central role in our governance processes and requires the involvement of all levels of the organisation. Our strategic risks are largely within the realms of finance, workforce and demand and capacity pressures. The Board and Senior Leadership Team have reviewed our strategic and corporate risks on a regular basis, adjusting mitigation and controls as needed.

Risk Mitigation
Finance:
Continued operating deficits run down reserves
which will eventually lead to solvency issues.
Meanwhile our investment portfolio remains
subject to current market volatility		 Normal financial disciplines
Monthly management of accounts
Annual Organisational Cost Improvement Plan
(CIP) 25/26 Review of future service delivery
options
Approved Business Plan 2025/26
Merger of all appropriate support functions
Clinical Integration 25/26
Updated Purchasing & Procurement Policy
Contracts review
Recruitment & retention:
If we cannot recruit and retain the necessary
workforce and volunteers, we will not be able to
deliver excellent care and charity mission.		 Digital campaigns
Implementation of i-recruit
Group pay and benefits review
Employee forum launched
VacancyApproval Panel Launched
Staff engagement and morale:
If there are low levels of staff engagement, this
could create a poor culture, sub optimal
outcomes and poor retention.		 New programme of All Staff Webinars
Volunteer thank you events
Long service rewards
People plan
Pay and benefits review
Group intranet launched
Staff survey plannedQ3 25/26
Challenging Fundraising landscape:
Ongoing difficulties surrounding fundraising,
including but not limited to, the cost-of-living
crisis, static government contributions, and team
stability, meaning that income potential is limited		 Retail restructure and strategy planned for Q4
25/26Fundraising specific roles, including
Legacy Administrations and stewardship.
Hospice UK Legacy Programme 25/26
Planned review of Fundraising Q4 25/26
Clinical excellence:
If we are unable to demonstrate delivery of
clinical excellence in PEoLC,there is a risk to our		 Clinical integration including review of service
offer in response to local communityneeds

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reputation as specialist providers within the
system, and as leaders in best practice		 Contribution to health and care system service
planning and commissioning intentions Staff
training and professional support including
supervision and Schwartz rounds
Dedicated time for continued professional
development, appraisals and revalidation
Robust statutory and mandatory training
compliance
Capacity:
If there is insufficient investment to
accommodate the increased demand for
Specialist Palliative and End-of-Life Services then
there is a risk to quality care, service delivery and
reputation		 Understanding of population needs
Clinical business continuity plans
Open culture of reporting
Prompt recruitment and low vacancy rates
Effective internal and external stakeholder
management i.e. commissioners
Compliance
If the organisation cannot demonstrate
compliance against regulatory frameworks there
is a risk to safety, care delivery and reputation
Quality governance structures standardised
across Group
Self-assessment against requirements and
external reviews
Ongoing liaison and communication with
regulators
Clear leadership structures, including board
and committees
Working Environment:
If there is a lack of focus upon safe caring and
inclusive working environment then there if a risk
to workforce health, safety and well being		 Health and safety working group with cross
site representation from services
Statutory and mandatory training programme
with compliance monitoring
Employee assist programme including mental
health first aiders
Work in confidence platform
Health and well-being initiatives
Employee Forum
Our estate:
Lack of resilience and failure to make best use of
states and assets may mean we cannot deliver
objectives or respond to unanticipated events		 Robust allocation of Hospice UK Capital Grant
25/26
Regular maintenance programme
Estates Committee
Cyber security:
Vulnerability to malware or cyber-attack could
lead to loss of data, reputational and financial
losses		 IT infrastructure reviewed and weak points
addressed
Firewall in place
Software updates
Subscription via Trident to virus and malware
alerts

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Mandatory regular cyber security training
Cyber insurance in place
Information governance group
Multifactor authentication
National cyber security centre notification
service enabling early warning of cyber
securitythreats
Investment:
Risk of losses in investment portfolio leading to
reduced financial stability for the business		 Finance governance committee meet twice
annually with investment managers who
providequarterlyreport.

Environmental Report

There is much we can still do to reduce our organisation’s environmental impact and increase our sustainability. The first task is mapping and understanding our impact, which we undertake in line with the Greenhouse Gas Protocol (GHG); the second is reducing our carbon footprint through ongoing transformations.

Greenhouse Gas (GHG) Emissions

In line with the Greenhouse Gas Protocol (GHG) Corporate Accounting and Reporting Standard, Southern Hospice Group continues to be engaged in a process aimed at reducing energy and greenhouse gas emissions. Our emissions have increased in this financial year, which is due to the formation of a new organisation (Southern Hospice Group), which brought together the St Barnabas and Martlets hospices and associated shops.

The Group maintains scopes one (1), two (2) and three (3) emissions, which include electricity and natural gas. Southern Hospice Group also maintain transport emissions inclusive of hospice owned/operated vehicles and employee owned/operated vehicles (whereby mileage is claimed as a business expense).

Southern Hospice Group has a longstanding commitment to tackling climate change. Calculated carbon footprint for the current financial year is 606.38 tCO2e, whilst energy consumption was 2,756,307 kWh (2,756 MWh).

Methodology

Southern Hospice Group has reported all emission sources under the Companies Act 2006 (Strategic Report and Director’s Reports) Regulations 2013 as required. Reporting of calculated emissions is in line with the GHG Protocol Corporate Accounting and Reporting Standard and emission factors from the UK Government's GHG Conversion Factors for Company Reporting 2024.

The reporting period is the financial year 2024/2025, the same as that covered by the Annual Report and Financial Statements. The boundaries of the GHG inventory are defined using the operational control approach. In general, the emissions reported are the same as those which would be reported based on a financial control boundary.

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2024/25 Emissions

Scope Energy Source Tonnes CO2 equivalent (CO2e)
Scope 1 Gas, diesel, company vehicles 309.93
Scope 2
Electricity		 250.11
Scope 3 T&D, personal vehicles 46.34
Total 606.38
All Intensitymetric 1.25

The intensity metric is based on a total FTE figure of 484.58 (headcount 599). Emissions have increased by 12.33% since the previous reporting period which is due to the acquisition of Martlets and subsequent shops as noted above.

Efficiency Measures Taken

Objectives for 2025/2026

Southern Hospice Group will report on progress within the next set of financial accounts.

Financial Review

This reporting year (ending 31 March 2025) has been challenging as we continue the journey of merging our two organisations into one new Southern Hospice Group. There is continuing pressure in the hospice sector as costs increase, and income generation becomes ever more difficult as our generous donors also face financial pressures.

The merger, and creation of Southern Hospice Group, has involved merging of systems, cultures and teams, working towards group efficiencies and greater productivity. This comes with an element of financial strain, but we continue to work towards the benefits that we know this can bring.

Below, please find highlights of Southern Hospice Group’s financial results for the financial year 2024/25, with stated 2023/24 comparatives including a full 12 months of Martlets Hospice results as a consequence of the use of merger accounting, see note 16 of the annual accounts for more details.

Reported income in the year was £30.3m which compares to £33.3m in 2024/25. Reported net deficit was £3.3m (2023/24 £3.1m), this is made up as follows:

£m
Southern Hospice Group operating deficit (3.7)
Gains on investments 0.5
Total deficit (3.3)

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Income from legacies was £6.5m, up on the £5.7m from the previous year. Fundraising accounted for £6.1m of income, compared to £10.0m in 2024/25, with a drop in the income in Martlets post merger as we work on consolidating our marketing strategy across the group. Retail income including the associated gift aid was £5.6m (2023/24 - £4.0m), a tribute to the hard work of all the colleagues and volunteers who run our charity shops. Income from Domiciliary Care was £0.8m in the year, remaining flat against 23/24.

Grants from the NHS accounted for £4.8m (2023/24 - £4.8m), with contractual income of £1.7m (2023/24 - £1.3m). Together this statutory funding represents 23% of the costs of running our hospices. Investment income of £0.4m was down on £0.7m in the prior year. Education income remained at £0.2m. Investment market conditions over the year were not as buoyant as the prior year with a gain of £0.4m on investments recorded (2023/24 - £1.2m).

Investments: Policy and Performance

The trustees intend that the charity’s invested assets are secured and enhanced, where possible, by investing in an equities, fixed income, alternatives, and cash portfolio. Each year, the trustees decide on the portfolio’s appropriate rate of return.

The charity does not make investments in any stocks considered unethical in the context of the charity’s objectives.

On appointment of W1M Wealth Management Ltd (formally Waverton Investment Management) at the end of the previous year, the trustees briefed a rate of return expectation of CPI +4%, with W1M managing the asset allocation to achieve this.

The investment income received for the year was £0.4m and an investment gain of £0.4m was recorded over the year.

Reserves Policy

Reserves are held by the charity to ensure it remains sustainable and continues to meet the needs of its community, in the event of adverse circumstances. It is intended to strengthen the charity’s

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd) Annual Report and Accounts 2024-25

Page 18

resilience and capacity to manage unforeseen financial difficulties and ensure that delivery of the charitable purpose is not interrupted.

The Trustees review the reserves policy each year and this year have agreed to continue to apply the risk-based formula for target free reserves introduced three years ago.

The calculation results in a target free reserves range of £12.9m to £17.2m. Free reserves are defined as those reserves that are not restricted, designated, or held as fixed assets.

The table below shows the calculation for the amount of free reserves on 31 March 2025. At £22.5m our free reserves are above the targeted range; however the group expects post-merger deficits to reduce this value in the coming years.

Total reserves at 31 March 2025
48.5
Less:
Restricted reserves 0.2
Designated reserves 25.8
Free reserves at 31 March 2025 22.5

Going Concern

The Trustees believe that the going concern basis is appropriate for the preparation of accounts, as explained in note 1.2 to the financial statements.

Disclosure of Information to the Auditors

Each of the trustees has confirmed that there is no information of which they are aware that is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have undertaken appropriate steps to identify such relevant information and to establish that the auditors are aware of such information.

Engagement with Suppliers, Customers and Others

During the period, the Charity continued to engage with suppliers. We work with local suppliers where we can, agreeing balanced and fair contractual terms and paying supplier invoices promptly. As a hospice organisation, we have a range of stakeholders such as patients, families, volunteers, and retail customers.

Engagement with stakeholders is further set out in the s172(1) Statement.

Governance

Southern Hospice Group is a company limited by Guarantee (company number 00930107) and registered with Companies House, and is a charity registered in England and Wales (256789). It is regulated by the Charity Commission.

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd) Annual Report and Accounts 2024-25

Page 19

Our governing Board of Trustees is committed to maintaining a high standard of corporate governance. Its members, all of whom are non-executive, bring a broad range of relevant experience and skills to Trustee discussions.

Trustees are appointed by the Board, subject to approval by the Association at the AGM. They serve a maximum of nine years (three terms of three years). They have full access to the e-learning induction programme for staff, with some modules being mandatory for all Trustees.

Trustee indemnity insurance was paid by the charity and was in place for all appointed Trustees throughout the period and at the time of approval of the report.

The names of the current Trustees are shown on page 3. All served throughout the year with the exception of the following who resigned during the year: Rebecca Crook, resigned October 2024 Stuart Palma, resigned January 2025

There are seven committees of the Board as at Year End 2025:

Committees may include specialists who are not members of the Board, but who volunteer to use their expertise to assist the committees. There are clear distinctions between the roles of the Trustees and the leadership team, to whom day-to-day management is delegated. Matters such as policy and strategic plans are prepared by the leadership team, for consideration and approval by the Trustees.

Southern Hospice Group owns five subsidiary companies:

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd) Annual Report and Accounts 2024-25

Page 20

Remuneration

Following the pay review in 2022-23, Southern Hospice Group continues to pay a Real Living Wage and has increased pay of its Real Living Wage employees to reflect this and ensure colleagues are paid fairly. Following the merger we also undertook a pay and benefits review to ensure pay parity and consistency in contracts.

As an organisation we undertake full and fair consideration of all applications for employment where candidates’ aptitudes and abilities are consistent with adequately meeting the requirements of the role. This is in line with our equality, diversity and inclusion policy. Training and development needs for all individuals are identified through our probation and appraisal processes, which also support with the identification of career development and promotion opportunities. Our in-house Education team provides support and training, which is available to all employees, including those with disabilities. This is further supported by our health and wellbeing policy to ensure we are caring for all of our employees, should illness or disability impact them at any time.

We have a remuneration committee of Trustees. The policy (approved in 2022) is based around benchmarking externally with flexibility as required, particularly for roles that are difficult to benchmark. The salaries of all individuals who report to the CEO, and that of the CEO themselves, are individually approved by the remuneration committee, as is the overall policy.

Gender Pay Gap reporting

Southern Hospice Group complies with the Equality Act and does not discriminate on the grounds of gender.

As a hospice charity our workforce profile is reflective of the wider care sector, and the majority of our workforce is female. In April 2023 we introduced a new pay and grading structure to simplify our approach to pay and ensure equality of pay across the organisation for the same job regardless of gender. To improve the level of pay for lower paid roles we also became a Real Living Wage Employer. We operate a bonus pay system for eligible colleagues which is triggered by certain annual financial targets.

Given the number of males compared to females employed within the work areas eligible for a bonus, small fluctuations in headcount can have a significant impact on the mean and median gender pay gap.

We confirm that our data has been calculated according to the requirements of the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd) Annual Report and Accounts 2024-25

Page 21

At the hospices, women earn 96p for every £1 that men earn when comparing median hourly pay. Their median hour pay is 4.3% lower than men’s. When comparing mean (average) hourly pay, women’s mean hourly pay is 2.9% lower than men’s.

Looking at the % of women who occupy jobs across the organisation, women occupy 90% of the highest paid jobs and 91% of the lowest paid jobs.

Upper hourly pay quarter women 90% men 10%
(highest paid)
Upper middle hourly pay women 89% men 11%
quarter
Lower middle hourly pay women 86% men 14%
quarter
Lower hourly pay quarter women 91% men 9%
(lowest paid)

Across the hospices, women earn £2.45 for every £1 that men earn comparing median bonus pay. Their median bonus pay is 145.14% higher than men’s. When comparing mean (average) bonus pay, women’s mean bonus pay is 295.95% higher. 2.1% of men receive a bonus, and 9.3% of women. Our bonus scheme is run across our retail operation only.

Section 172 (1) Statement

This statement is intended by the Board of Trustees to set out how they have approached and met their responsibilities under s172(1)(a) to (f) of the Companies Act 2006, in the period ending 31 March 2025.

Stakeholders of the Charity include employees, patients, families, volunteers, suppliers, customers, and the community in which it operates.

The Trustees, both individually and collectively, consider that they have acted in good faith to promote the success of the Charity for the benefit of its stakeholders (having regard to the matters set out in s172 of the Act) in the decisions taken during the period. In particular:

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd) Annual Report and Accounts 2024-25

Page 22

Patient care is at the heart of the Charity. and it is essentlal to provide sustalnable healthcare true to the Charity'5 values.. caring, courageous and connected. This was the key perspective by which the Board assessed the business case for the merger with Martlets. The Trustees, intentions are to behave responsibly toward all stakeholders and treat them fairly and equally, whilst pursuing the long-term success of the Charity. The Trustees have overall responsibility for determining the Charity's visSon, mission, values and strategy and for ensuring hiEh standards of governance. The primary aim of the Trustees is to promote the Charitv's mission to provide comfort, dignity and choice for adults, young people and children with life-limiting illness through specialist and supportive care, ensurlng the sustainable success of the Charlty, and contributing to the wider society. In approving the Trustees, Annual Report. we also approve the Strategic Report included therein, in our capacity a5 Company Directors. Approved and authorised for issue by the Trustees on, and signed on their behalf, by: Jill Carnie and Ruth Taylor Co-chalrs Steve johnson Treasurer Date.. 01 October 2025 Southern HOSP￿ Group (formerly St Barnabas Hospi￿5 Isussexl Ltdl Annual Rewrt and Accounts 2024-25 Pa8e 23 Prtsmenl,. Lordyenry. Earl olArund*l. stbh.org.uk ¢hestnut.org.uk martlets.org.uk Charity Numbei 2567H9land 1% Intorpor3t2d 85 a comiiany Iirnitvd bv IIEW%teip.¢l In ÉngiAnd Numbpr9301071.

Statement of Trustees’ Responsibilities

The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees’ report including the Strategic Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd) Annual Report and Accounts 2024-25

Page 24

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Independent auditors' report to the Members of Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

Opinion

We have audited the financial statements of Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd) (the 'parent charitable company') and its subsidiaries (the 'group') for the Year ended 31 March 2025 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Charity balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of 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).

In our opinion the financial statements:

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent 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.

Page 25

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Independent auditors' report to the Members of Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd) (continued)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion 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 our 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' report.

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

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the 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 Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Page 26

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Independent auditors' report to the Members of Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd) (continued)

Auditors' responsibilities for the audit of the financial statements

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

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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Capability of the audit in detecting irregularities, including fraud

Based on our understanding of the charity and sector as a whole, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to Care Quality Commission (CQC) regulations, restrictions imposed by charity law on the use of restricted funds, health and safety and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, the Charities Act 2011 and Charities SORP (FRS 102) 2019 and consider other factors such as tax legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks related to posting inappropriate journal entries to increase revenue or reduce expenditure, management bias in accounting estimates and judgemental areas of the financial statements such as legacy income recognition.

Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.

Page 27

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Independent auditors' report to the Members of Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd) (continued)

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Lucy Hammond BSc FCA (Senior statutory auditor)

for and on behalf of

Kreston Reeves Audit LLP Chartered Accountants Statutory Auditor Chichester

21 October 2025

Page 28

Southern Hospic8 Group Ifomierly St Barnabas Hospicas Isussexl Ltd) {A company Ilmlted by guarantee} Consolidated Statement of financial activities (incorporating Income and expenditure account) for the year ended 31 March 2025 Rèstrlcted Unrestrlctsd funds funds 2025 2025 £000 £000 Total funds 2025 £000 Total funds 2024 £000 Note Income from: Donations and legacies Charitable activities Other trading acliwlies Inveslmenls other income 354 7.025 12,530 730 12.884 7,755 9,054 487 157 16,045 6,789 9,755 729 41 9.054 487 157 Total Income 7.379 22,958 30,337 33,359 Expendlture on: Raising funds Charitable activities 10,338 16.939 10.338 23,741 10,747 27,017 6,802 Total expenditure 6.802 27,277 34.079 37,764 Net incomellexpenditure} before net gains on investments Nel gains on investments 577 14,3191 463 13,7421 463 14,405) 1,256 Net incomellexpendlture} Transfers beh￿een funds 577 16281 {3,8561 628 13.279} {3.1491 17 Net movement in funds 1511 3,2281 13,2791 13,1491 Reconciliation of funds: Total funds brought fOn￿ard Net movement in funds 223 51.543 13,2281 51,766 {3,2791 54,915 13,1491 {511 Total funds carried fotward 172 48,315 48.487 51,766 The Consolidated statement of financial activities includes all gains and losses recognised in the Year. The notes on pages 35 to 64 form part of these financial statements. Page 29

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd) (A company limited by guarantee) Registered number: 0930107

Consolidated balance sheet as at 31 March 2025

Note
Fixed assets
Tangible assets
11
Investments
12
Current assets
Stocks
Debtors
13
Cash at bank and in hand
Current liabilities
Creditors: amounts falling due within one
year
14
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
15
Net assets
Total net assets
Charity funds
Restricted funds
17
Unrestricted funds
17
Total funds		 25
4,342
6,003
10,370
(1,324)		 2025
£000
24,421
15,073
39,494
9,046
48,540
(53)
48,487
48,487
172
48,315
48,487		 46
2,430
8,409
10,885
(1,932)		 2024
£000
25,541
17,341
42,882
8,953
51,835
(69)
51,766
51,766
223
51,543
51,766

Page 30

Southern Hospice Group (formerly St Bamaba$ Hospices ISus$ex} Ltd IA company Ilmitgd by guarantsèl Regi5tored number: 0930107 Consolidated balance sheetlcontlnuedl as at 31 March 2025 The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect lo accounting records and preparation of financial statements. The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by.. ij Ruth Taylor Ico-chalr) Jlll Carnie {Co-Chairl steven Johnson (Treasurer) Dale." 1 October 2025 The notes on pages 35 10 64 lorm part ofthese financial stslemenls. Page 31

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd) (A company limited by guarantee) Registered number: 0930107

Charity balance sheet as at 31 March 2025

Note
Fixed assets
Tangible assets
11
Investments
12
Current assets
Stocks
Debtors
13
Cash at bank and in hand
Current liabilities
Creditors: amounts falling due within one
year
14
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
15
Net assets
Total net assets
Charity funds
Restricted funds
17
Unrestricted funds
17
Total funds		 5
4,433
5,950
10,388
(1,321)		 2025
£000
24,421
15,109
39,530
9,067
48,597
(53)
48,544
48,544
184
48,360
48,544		 46
3,356
8,343
11,745
(2,799)		 2024
£000
25,541
17,377
42,918
8,946
51,864
(69)
51,795
51,795
223
51,572
51,795

Page 32

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee) Registered number: 0930107

Charity balance sheet (continued) as at 31 March 2025

The Charity's net movement in funds for the y ear was £(3,251k) (2024 - £(3,199 k )).

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Page 33

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Consolidated statement of cash flows for the year ended 31 March 2025

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Proceeds from sale of investments
Purchase of investments
Net cash provided by/(used in) investing activities
Change in cash and cash equivalents in the Year
Cash and cash equivalents at the beginning of the Year
Cash and cash equivalents at the end of the Year		 2025
£000
(5,464)
(487)
(606)
16,029
(11,878)
3,058
(2,406)
8,409
6,003		 2024
£000
2,104
(729)
(7,715)
6,395
(2,268)
(4,317)
(2,213)
10,622
8,409

The notes on pages 35 to 64 form part of these financial statements

Page 34

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

1. Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd) meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Charity and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis.

On 1 February 2024, the Martlets Group joined the Southern Hospice Group. During the year ended 31 March 2025, the assets and liabilities of The Martlets Hospice Limited and Martlets Trading Limited were hived up into the Parent Charity. In accordance with FRS 102 and the Charities SORP, this group reconstruction has been accounted for using merger accounting resulting in the SOFA and balance sheet for the prior year being restated to include the relevant Martlets entities.

The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.

The Financial statements are prepared in sterling and rounded to the nearest £1,000.

1.2 Going concern

The financial statements for the Group and parent charity are prepared on a going concern basis as the Trustees’ believe that no material uncertainties exist. After reviewing the group's and parent charity's forecasts and projections, the Trustees have a reasonable expectation that the group and parent charity have adequate resources to continue in operational existence for the foreseeable future.

Page 35

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

1. Accounting policies (continued)

1.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured.

Grants are included in the Consolidated statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

Donated goods and services have not been recognised in these financial statements as it is not practicable to do so as the cost outweighs the benefit.

Page 36

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

1. Accounting policies (continued)

1.4 Expenditure

Expenditure is recognised on an accruals basis. Expenditure is allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity comprising the salary and overhead costs of the central function is apportioned on an estimate of the staff time attributable to each activity.

Fundraising costs comprise costs incurred in encouraging people and organisations to contribute financially to the charity's work. Costs of charitable activities are those costs incurred in relation to the objectives of the charity.

Governance costs are associated with meeting the constitutional and statutory arrangements of the charity, including external audit and the cost of preparing statutory accounts, the cost of trustees' meetings and other costs involved with the charity's strategic management.

1.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

1.6 Gift Aid

In the case of a Gift Aid payment made within the Group, income is accrued when the payment is payable to the Parent Charity under a legal obligation. Measurement is at the fair value receivable, which will normally be the transaction value.

Where the right to receive Gift Aid has been established, the amount receivable is recognised as income in the Consolidated statement of financial activities.

1.7 Taxation

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

1.8 Tangible fixed assets and depreciation

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Page 37

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

1. Accounting policies (continued)

1.8 Tangible fixed assets and depreciation (continued)

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

Assets costing less than £5,000, are written off to expenditure in the year of acquisition. Assets under construction are not depreciated until the asset is brought into use.

1.9 Investments

Listed investments are stated at market value. Realised and unrealised gains and losses on investments are dealt with in the Statement of Financial Activities and investment income is credited to income on an accruals basis. Investment management costs are charged as expenditure out of the relevant income funds.

Investments in subsidiaries are valued at cost less provision for impairment.

1.10 Stocks

Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

1.11 Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

1.12 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.13 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Page 38

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

1. Accounting policies (continued)

1.14 Deferred taxation

Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.

A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable surpluses from which the future reversal of the underlying timing differences can be deducted.

Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.

1.15 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

1.16 Operating leases

Rentals payable under operating leases, where substantially all the risks and rewards of ownership remain with the lessor, are charged to the Statement of Financial Activities in equal amounts over the period of the lease.

1.17 Pensions

The parent charity operated a defined benefit scheme on behalf of employees – the NHS Pension Scheme. This scheme is a multi employer scheme where assets and liabilities of the scheme, applicable to each employer, are not separately identified. Therefore, the pension charge recorded in these financial statements is the amount of contributions payable on a defined contribution basis in the accounting year, plus any deficit funding agreed during the year to be paid in future years, in accordance with Financial Reporting Standard 102.

In addition, two defined contribution schemes are operated by the parent charity. Contributions payable are charged in the period to which they relate. Further information on the pension schemes can be found in note 22.

1.18 Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor or when funds are raised for a particular restricted purpose. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other income receivable or generated for the objects of the charity. Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Page 39

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

2. Critical accounting estimates and areas of judgment

In applying the above accounting policies, the Trustees are required to make estimates and judgments.

Critical accounting estimates and assumptions:

The Trustees makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

The key sources of estimation uncertainty relate to the recognition of income from legacies, where the actual amount received may differ from that initially recognised, and tangible fixed assets, which are stated at their deemed cost less provision for depreciation. The charity at acquisition determines the reliable estimates for the useful life of the asset and its residual value. These estimates are based upon factors such as the expected use of the acquired asset and market conditions. At subsequent reporting dates the trustees consider whether there are any factors that indicate that there would be a need to reconsider the estimates used.

Critical areas of judgment:

The key judgments applied in these financial statements are in determining the allocation of funds as restricted or designated.

Page 40

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

3. Income from donations and legacies

Donations
Legacies
Retail gift aid donations		 Restricted
funds
2025
Unrestricted
funds
2025
£000
£000
354
5,708
-
6,457
-
365
354
12,530		 Total
funds
2025
£000
6,062
6,457
365
12,884

The Group has an estimated £4,395k (2024: £4,290k) in contingent assets in respect of potential legacy income. This relates to outstanding legacies at the year end which did not meet the recognition criteria, but which are expected to be recognised in the next financial year.

Donations
Legacies
Retail gift aid donations		 Restricted
funds
2024
£000
682
-
-
682		 Unrestricted
funds
2024
£000
9,319
5,721
323
15,363		 Total
funds
2024
£000
10,001
5,721
323
16,045

4. Income from charitable activities

NHS grants
Contractual income
Other grants
Education income		 Restricted
funds
2025
Unrestricted
funds
2025
£000
£000
4,794
-
1,567
134
664
436
-
160
7,025
730		 Total
funds
2025
£000
4,794
1,701
1,100
160
7,755

Page 41

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

NHS grants
Contractual income
Other grants
Education income		 Restricted
funds
2024
£000
4,789
1,119
-
56
5,964		 Unrestricted
funds
2024
£000
-
165
479
181
825		 Total
funds
2024
£000
4,789
1,284
479
237
6,789

The parent charity received a restricted grant from the Coastal West Sussex Clinical Commissioning Group (CCG) of £1,469k (2024: £1,460k) for St Barnabas House. The parent charity received a restricted grant from the Department of Health of £695k (2024: £680k) for Chestnut Tree House. The parent charity received £2,630k (2024: £2,649k) for Martlets from NHS Brighton and Hove Clinical Commissioning Group (CCG) and NHS High Weald Lewes Havens Clinical Commissioning Group.

Statutory contract income of £1,701k (2024: £1,284k) was received for the provision of care at St Barnabas House and Chestnut Tree House from local county councils and Coastal West Sussex CCG.

In the year ending 31 March 2025 other grant income includes funding from Hospice UK for a capital grant of £621k (2024: £Nil).

5. Income and expenditure from raising funds

**Retail ** Fundraising Care Total
2025 2025 2025 2025
£000 £000 £000 £000
Legacies (note 3) - 6,457 - 6,457
Donations and retail gift aid donations (note 3) 364 6,063 - 6,427
Income from trading activities 5,210 3,015 829 9,054
Income from raising funds 5,574 15,535 829 21,938
- - - -
Salary costs (note 7) (2,588) (1,813) (672) (5,073)
Other costs excluding retail depreciation (1,772) (1,495) (76) (3,343)
Expenditure on raising funds (4,360) (3,308) (748) (8,416)
Surplus before support costs and depreciation 1,213 12,227 80 13,520
Support costs (note 7) (850) (1,014) (57) (1,921)
Total Contributions from raising funds 363 11,213 23 11,599

Support salaries are included in support costs.

In the year ended 31 March 2025, of the total income from trading activities, £nil (2024: £nil) was to restricted funds.

Page 42

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

Comparative information

Comparative information
**Retail ** Fundraising Total
2024 2024 2024
£000 £000 £000
Legacies (note 3) - 5,721 5,721
Donations and retail gift aid donations (note 3) 242 10,081 10,323
Income from trading activities 3,796 5,959 9,755
Income from raising funds 4,038 21,761 25,799
Salary costs (note 7) (1,779) (1,726) (3,505)
Other costs excluding retail depreciation (1,043) (1,650) (2,693)
Expenditure on raising funds (2,822) (3,376) (6,198)
Surplus before support costs and depreciation 1,157 8,118 9,275
Support costs (note 7) (640) (650) (1,290)
Total Contributions from raising funds 517 7,468 7,985

6. Investment income

Unrestricted
funds
2025
£000
Income from listed investments
438
Interest receivable
49
487
Unrestricted
funds
2024
£000
Income from listed investments
656
Interest receivable
73
729		 Total
funds
2025
£000
438
49
487
Total
funds
2024
£000
656
73
729

Page 43

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

7. Total expenditure

Staff costs
excluding
support
salaries		 Other costs Support
costs
including
support
salaries		 Total funds
2025 2025 2025 2025
£000 £000 £000 £000
Charitable activities
St Barnabas House 5,773 811 2,244 8,828
Chestnut Tree House 3,524 1,089 1,668 6,281
Martlets Hospice 5,279 1,437 1,914 8,630
Total charitable activities 14,576 3,338 5,826 23,740
Raising funds 5,074 3,344 1,921 10,339
Total expenditure 19,650 6,682 7,747 34,079
Raising
funds		 Charitable
activities		 Total 2025
£000 £000 £000
Support cost allocation
Support staff costs 1,118 3,392 4,510
Premises, technology and other costs 803 2,434 3,237
1,921 5,826 7,747

Page 44

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

Staff costs
excluding
support
salaries		 Other costs Support
costs
including
support
salaries		 Total funds
Comparative information 2024 2024 2024 2024
£000 £000 £000 £000
Charitable activities
St Barnabas House 6,479 1,517 2,110 10,106
Chestnut Tree House 3,503 1,069 1,357 5,929
Martlets Hospice 5,045 1,174 4,763 10,982
Total charitable activities 15,027 3,760 8,230 27,017
Raising funds 5,610 3,438 1,699 10,747
Total expenditure 20,637 7,198 9,929 37,764
Raising
funds		 Charitable
activities		 Total 2024
Support cost allocation £000 £000 £000
Support staff costs 755 3,810 4,565
Premises, technology and other costs 944 4,420 5,364

In the year ended 31 March 2025, £6,759k of the total expenditure on charitable activities was from restricted funds (2024: £4,053k).

Governance costs of the parent total £69k (2024: £53k) relating to the parent charity auditor's remuneration (note 8), trustees’ insurance and expenses (note 10) are included within ‘Premises, technology and other costs’.

Page 45

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

8. Auditors' remuneration

2025 2024
£000 £000
Fees payable to the Group's auditor and its associates for audit related
work 68 45
Fees payable to the Group's auditor and its associates for non-audit related
work 1 8
Fees payable to the Subsidiaries' auditor and its associates for audit related
work 13 21

9. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2025
£000
20,272
1,943
1,596
23,811		 Group
2024
£000
19,840
1,873
1,489
23,202		 Charity
2025
£000
20,064
1,929
1,588
23,581		 Charity
2024
£000
19,739
1,864
1,484
23,087

During the year ended 31 March 2025, the charity paid £90K (2024: £16K) of redundancy payments to 6 (2024: 5) employees. There were no unpaid amounts at the balance sheet date.

During the year ended 31 March 2025, the charity paid £79K (2024: £Nil) of ex-gratia payments to 11 (2024: Nil) employees. There were no unpaid amounts at the balance sheet date.

The average number of persons employed (full time equivalent) by the Charity during the Year was as follows:

St Barnabas House
Chestnut Tree House
Education, Quality & Research
Income generation
Governance
Martlets		 Group
2025
No.
137
102
10
168
1
120
538		 Group
2024
No.
143
104
15
153
1
200
616		 Charity
2025
No.
137
102
10
126
1
120
496		 Charity
2024
No.
143
104
15
111
1
200
574

The average total headcount of the group was 738 (2024 - 810).

Page 46

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

9. Staff costs (continued)

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2025 2024
No. No.
In the band £60,001 - £70,000 6 9
In the band £70,001 - £80,000 3 4
In the band £80,001 - £90,000 4 5
In the band £90,001 - £100,000 1 2
In the band £100,001 - £110,000 1 -
In the band £110,001 - £120,000 2 1
In the band £120,001 - £130,000 1 1
In the band £140,001 - £150,000 - 1
In the band £160,001 - £170,000 - 1
In the band £170,001 - £180,000 - 1
In the band £200,001 - £210,000 1 -

The aggregate pension contributions made by the charity on behalf of higher paid staff was £159,807 (2024 - £118,977). The number of higher paid staff accruing benefits in defined contribution and defined benefit pension schemes was 8 and 10 respectively (2024: 10 and 9).

The total amount of employee remuneration and benefits received by key management personnel was £935K (2024: £1,092K).

Page 47

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

10. Trustees' remuneration and expenses

During the Year, no Trustees received any remuneration or other benefits (2024 - £NIL).

During the Year ended 31 March 2025, no Trustee expenses have been incurred (2024 - £NIL).

Trustees' indemnity insurance of £2.5k (2024: £5k) is paid by the parent charity.

Page 48

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

11. Tangible fixed assets

Group

Cost or valuation
At 1 April 2024
Additions
Disposals
At 31 March 2025
Depreciation
At 1 April 2024
Charge for the Year
On disposals
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024		 Freehold
property
£000
13,132
388
-
13,520
4,504
161
-
4,665
8,855
8,628		 Long-term
leasehold
property
Short-term
leasehold
property
£000
£000
17,031
1,335
-
-
-
-
17,031
1,335
4,679
136
576
69
-
-
5,255
205
11,776
1,130
12,352
1,199		 Motor
vehicles
£000
350
63
(74)
339
350
4
(74)
280
59
-		 Fixtures
and
fittings
£000
8,233
155
(29)
8,359
5,270
859
(29)
6,100
2,259
2,963		 Computer
equipment
Other fixed
assets
£000
£000
264
495
-
-
-
-
264
495
169
190
39
19
-
-
208
209
56
286
94
305		 Total
£000
40,840
606
(103)
41,343
15,298
1,727
(103)
16,922
24,421
25,541

Page 49

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

11. Tangible fixed assets (continued)

Charity

Cost or valuation
At 1 April 2024
Additions
Disposals
At 31 March 2025
Depreciation
At 1 April 2024
Charge for the Year
On disposals
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024		 Freehold
property
£000
13,132
388
-
13,520
4,504
161
-
4,665
8,855
8,628		 Long-term
leasehold
property
£000
17,031
-
-
17,031
4,679
576
-
5,255
11,776
12,352		 Short-
term
leasehold
property
£000
1,335
-
-
1,335
136
69
-
205
1,130
1,199		 Motor
vehicles
£000
350
63
(74)
339
350
4
(74)
280
59
-		 Fixtures
and
fittings
£000
8,233
155
(29)
8,359
5,270
859
(29)
6,100
2,259
2,963		 Computer
equipment
Other fixed
assets
£000
£000
264
495
-
-
-
-
264
495
169
190
39
19
-
-
208
209
56
286
94
305		 Total
£000
40,840
606
(103)
41,343
15,298
1,727
(103)
16,922
24,421
25,541

Page 50

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

11. Tangible fixed assets (continued)

Charity (continued)

The Freehold property in the parent charity relates to the shops, consisting of units at Rustington, Wick and Ferring, were professionally valued in March 2014 by C G Spratt and Son Limited, estate agents, surveyors and valuers, on an open market basis at £125,000, £220,000 and £150,000 respectively (total of £495,000) and are recognised as deemed cost on transition to SORP 2015 (FRS 102). These assets are being depreciated from their valuation date.

The historic cost of these shops at Rustington, Wick and Ferring is £45,000, £124,716 and £142,500 respectively.

Leasehold property, above, relates to leasehold property with less than 30 years remaining at the balance sheet date. There are no leases with more than 30 years remaining at the balance sheet date.

£621,000 of the additions in the year were funded by a restricted grant from Hospice UK, as shown in note 17.

Page 51

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

12. Fixed asset investments

Group
Cost or valuation
At 1 April 2024
Additions
Disposals
Revaluations
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024		 Listed
investments
£000
17,103
11,878
(15,963)
1,883
14,901
14,901
17,103		 Other fixed
asset
investments
£000
238
-
(66)
-
172
172
238		 Total
£000
17,341
11,878
(16,029)
1,883
15,073
15,073
17,341

Historic cost at 31 March 2025 was £13,757k (2024: £14,987k).

Charity
Cost or valuation
At 1 April 2024
Additions
Disposals
Revaluations
At 31 March 2025
Net book value
At 31 March 2025
At 31 March 2024		 Investments
in
subsidiary
companies
£000
36
-
-
-
36
36
36		 Listed
investments
£000
17,103
11,878
(15,963)
1,883
14,901
14,901
17,103		 Other fixed
asset
investments
£000
238
-
(66)
-
172
172
238		 Total
£000
17,377
11,878
(16,029)
1,883
15,109
15,109
17,377

Page 52

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

13. Debtors

Group
2025
£000
Due within one year
Amounts owed by group undertakings
-
Other debtors
898
Prepayments and accrued income
3,444
4,342
14.
Creditors: Amounts falling due within one year		 Group
2024
£000
-
1,104
1,326
2,430		 Charity
2025
£000
167
898
3,368
4,433		 Charity
2024
£000
1,005
1,088
1,263
3,356
Group
Group
2025
2024
£000
£000
Trade creditors
482
448
Amounts owed to group undertakings
-
-
Other taxation and social security
15
159
Other creditors
295
80
Accruals and deferred income
532
1,245
1,324
1,932
Deferred income at 1 April 2024
Income deferred during the year on acquisition of The Martlets Hospice
Limited
Amounts released from previous periods		 Charity
2025
£000
482
-
15
292
532
1,321
Group
2025
£000
422
-
(422)
-		 Charity
2024
£000
434
697
146
282
1,240
2,799
Group
2024
£000
-
422
-
422

Deferred income in The Martlets Hospice Limited relates to grants received in advance of the year to which the related service was provided.

15. Creditors: Amounts falling due after more than one year

Group Group Charity Charity
2025 2024 2025 2024
£000 £000 £000 £000
Other creditors 53 69 53 69

Page 53

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

16. Merger Accounting

On 1 February 2024, the Martlets Group joined the Southern Hospice Group. During the year ended 31 March 2025, the assets and liabilities of The Martlets Hospice Limited and Martlets Trading Limited were hived up into the Parent Charity. In accordance with FRS 102 and the Charities SORP, this group reconstruction has been accounted for using merger accounting resulting in the SOFA and balance sheet for the prior year being restated to include the relevant Martlets entities.

Page 54

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

17. Statement of funds

Statement of funds - current year

Unrestricted
funds
Designated
funds
Tangible fixed
assets
CTH capital
development
STBH capital
development
Service
Development
fund
Other
unrestricted
funds
General Funds
Total
Unrestricted
funds		 Balance at 1
April 2024
£000
25,541
150
50
5,170
30,911
Balance at 1
April 2024
£000
20,632
51,543		 Income
£000
-
-
-
-
-
Income
£000
22,958
22,958		 Expenditure
£000
(1,727)
-
-
-
(1,727)
Expenditure
£000
(25,550)
(27,277)		 Transfers
in/out
£000
607
(150)
(50)
(3,742)
(3,335)
Transfers
in/out
£000
3,963
628		 Gains/
(Losses)
£000
-
-
-
-
-
Gains/
(Losses)
£000
463
463		 Balance at
31 March
2025
£000
24,421
-
-
1,428
25,849
Balance at
31 March
2025
£000
22,466
48,315

Page 55

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

17. Statement of funds (continued)

Restricted
funds
Operating and
equipment
funds
Contracted
income
NHS grant - St
Barnabas
House
Department of
Health -
Chestnut Tree
House
NHS grant -
Martlets
Hospice UK
Capital Grant
Other
Total of funds		 Balance at 1
April 2024
£000
216
-
-
-
-
-
7
223
51,766		 Income
£000
354
1,610
1,469
695
2,630
621
-
7,379
30,337		 Expenditure
£000
(398)
(1,610)
(1,469)
(695)
(2,630)
-
-
(6,802)
(34,079)		 Transfers
in/out
£000
-
-
-
-
-
(621)
(7)
(628)
-		 Gains/
(Losses)
£000
-
-
-
-
-
-
-
-
463		 Balance at
31 March
2025
£000
172
-
-
-
-
-
-
172
48,487

Page 56

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

17. Statement of funds (continued)

Designated funds

The tangible fixed assets funds represent charitable funds invested in operational fixed assets (at cost). The assets will be used throughout the time of activity of the Group. Expenditure from the funds represents the annual depreciation on the deemed cost of those assets. The transfers into the fund relates to adjustments arising on acquisitions and disposals.

The Chestnut Tree capital development fund was set up to cover the costs of a renovation programme centred around the children’s bedrooms. This is now complete.

The St Barnabas capital development fund was set up to cover the costs of a renovation programme centred around the In-patient Unit and the Living Well area. This is now complete.

The Service Development fund was set up in 2021/22 to cover anticipated operating losses over the next three year period when the charity was consolidating activities and diversifying income streams.

Transfers out relate to monies spent or reallocated for other purposes during the year.

Restricted funds

The operating and equipment funds represent donations made for specific equipment purchases and running costs in the hospices. When specific assets are purchased a transfer is made to move the value from restricted funds to designated funds held as tangible fixed assets.

The NHS grant - St Barnabas House is provided by NHS Coastal West Sussex to cover partial operating costs of St Barnabas.

The Department of Health - Chestnut Tree House grant is provided to cover partial operating costs of Chestnut Tree House.

The NHS grant - Martlets is provided by NHS Brighton and Hove Clinical Commissioning Group and NHS High Weald Lewes Havens Clinical Commissioning Group to cover partial operating costs of Martlets.

Hospice UK Capital Grant - this represents income received from the government via Hospice UK to be spent on capital projects in the year of receipt.

Other restricted funds fully spent in the prior year related to:

Page 57

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

17. Statement of funds (continued)

Statement of funds - prior year
Balance at
1 April 2023
£000
Income
£000
Unrestricted
funds
Designated
funds
Tangible fixed
assets
24,276
-
CTH capital
development
1,000
-
STBH capital
development
1,500
-
Service
Development
fund
8,680
-
35,456
-
Balance at
1 April 2023
£000
Income
£000
Other
unrestricted
funds
General Funds
16,810
24,731
Total
Unrestricted
funds
52,266
24,731		 Statement of funds - prior year
Balance at
1 April 2023
£000
Income
£000
Unrestricted
funds
Designated
funds
Tangible fixed
assets
24,276
-
CTH capital
development
1,000
-
STBH capital
development
1,500
-
Service
Development
fund
8,680
-
35,456
-
Balance at
1 April 2023
£000
Income
£000
Other
unrestricted
funds
General Funds
16,810
24,731
Total
Unrestricted
funds
52,266
24,731		 Expenditure
£000
(1,048)
-
-
-
(1,048)
Expenditure
£000
(28,858)
(29,906)		 Transfers
in/out
£000
2,313
(850)
(1,450)
(3,510)
(3,497)
Transfers
in/out
£000
6,693
3,196		 Gains/
(Losses)
£000
-
-
-
-
-
Gains/
(Losses)
£000
1,256
1,256		 Balance at
31 March
2024
£000
25,541
150
50
5,170
Unrestricted
funds
Designated
funds
Tangible fixed
assets
CTH capital
development
STBH capital
development
Service
Development
fund
Other
unrestricted
funds
General Funds
Total
Unrestricted
funds		 Balance at
1 April 2023
£000
24,276
1,000
1,500
8,680
35,456
Balance at
1 April 2023
£000
16,810
52,266
30,911
Balance at
31 March
2024
£000
20,632
51,543

Page 58

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

17. Statement of funds (continued)

.

Restricted
funds
Operating and
equipment
funds
Contracted
income
NHS grant - St
Barnabas
House
Department of
Health -
Chestnut Tree
House
HEE Funded
Activity
NHS Sussex
Integrated
Care Board
NHS grant -
Martlets
Capital Funds
Carers Project
Hospice at
Home
Heads On
Charity/NHS
Charities
Together
Other
Total of funds		 Balance at
1 April 2023
£000
125
-
-
-
100
54
-
2,331
7
6
7
19
2,649
54,915		 Income
£000
657
1,119
1,460
680
-
56
2,649
1,907
38
37
-
24
8,627
33,358		 Expenditure
£000
(591)
(1,119)
(1,460)
(680)
(100)
(85)
(2,649)
(1,042)
(45)
(43)
(7)
(36)
(7,857)
(37,763)		 Transfers
in/out
£000
-
-
-
-
-
-
-
(3,196)
-
-
-
-
(3,196)
-		 Gains/
(Losses)
£000
-
-
-
-
-
-
-
-
-
-
-
-
-
1,256		 Balance at
31 March
2024
£000
191
-
-
-
-
25
-
-
-
-
-
7
223
51,766

Page 59

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd) (A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

18. Analysis of net assets between funds

Total
Analysis of net assets between funds - prior year
Total
Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year		 Restricted
funds
2025
Unrestricted
funds
2025
£000
£000
Restricted
funds
2024
Unrestricted
funds
2024
£000
£000
223
51,543
172
48,315
-
25,541
-
17,341
223
10,662
-
(1.932)
-
(69)
-
24,421
-
15,073
172
10,198
-
(1,324)
-
(53)		 Total
funds
2025
£000
Total
funds
2024
£000
51,766
48,487
25,541
17,341
10,885
(1,932)
(69)
24,421
15,073
10,370
(1,324)
(53)

Page 60

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

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

Net expenditure for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Loss of on impairment of assets
Losses on investments
Dividends, interests and rents from investments
Decrease in stocks
Decrease/(increase) in debtors
Decrease in creditors
Net cash provided by/(used in) operating activities
20.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
21.
Analysis of changes in net debt
At 1 April
2024
£000
Cash at bank and in hand
8,409
8,409		 Group
2025
£000
(3,279)
1,727
-
(1,883)
487
21
(1,912)
(625)
(5,464)
Group
2025
£000
6,003
6,003
Cash flows
£000
(2,406)
(2,406)		 Group
2024
£000
(3,149)
2,146
1,013
(1,002)
729
5
3,203
(841)
2,104
Group
2024
£000
8,409
8,409
At 31 March
2025
£000
6,003
6,003

Page 61

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

22. Pension commitments

Royal London Group Personal Pension Plan

This scheme is a defined contribution scheme, open to all employees under auto enrolment.

NHS Pension Scheme

The NHS Pension Scheme is an unfunded occupational scheme backed by the Exchequer, which is open to all NHS employees and employees of other approved organisations. The Scheme provides pensions, based on final salary, in varying circumstances for employees of participating employers. As such, it is not possible for the Group to identify its share of the assets and liabilities of the underlying scheme.

The Exchequer also funds the year-on-year difference between the Scheme's contribution income and the actuarially assessed growth in scheme liability, interest charges and other in year increases in liability.

During the year Group paid £1,596k in relation to the Defined contribution scheme, at the year end the group owed £212K (2024: £223K).

23. Operating lease commitments

At 31 March 2025 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years		 Group
2025
£000
342
668
86
1,096		 Group
2024
£000
392
963
133
1,488		 Charity
2025
£000
342
668
86
1,096		 Charity
2024
£000
392
963
133
1,488

The following lease payments have been recognised as an expense in the Statement of financial activities:

Group Group Charity Charity
2025 2024 2025 2024
£000 £000 £000 £000
Operating lease rentals 721 612 721 536

Page 62

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

24. Related party transactions

During the year the charity made the following related party transactions

University Hospitals Sussex - NHS Foundation Trust

During the year the charity purchased medical supplies totalling £54,646 (2024: £105,912) from University Hospitals Sussex - NHS Foundation. Mr D Rennie-Hale is a trustee of Southern Hospice Group and an employee of University Hospitals Sussex - NHS Foundation. The charity also made sales of £28,560 (2024: £50) in relation to the provision of training to the University Hospitals Sussex - NHS Foundation. At the year end an amount of £51,618 (2024: £448) was due to the University Hospitals Sussex - NHS Foundation from the charity.

NHS Sussex - ICB

During the year the charity recognised grant income of £72,720 (2024: £833,510) from NHS Sussex - ICB. The charity also recognised purchases totalling £4,774 (2024: £Nil). Mr S Palma was a trustee of Southern Hospice Group until 7 January 2025 and an employee of NHS Sussex - ICB for the full financial year. Subsequent to the year end he was appointed as Chief Executive of Southern Hospice Group. At the year end the charity was owed £349,711 (2024: £157,669) from NHS Sussex - ICB.

Leo House Children's Hospice

During the previous year, the charity received £342,035 from Leo House Children's Hospice. This was receipt of a grant for the work carried out by community nurses at Chestnut Tree House and the final payment included the full value of the remaining assets (all cash at bank) held by Leo House Children's Hospice at 15 March 2024 when that charity ceased to exist as a separate legal entity. Mr A Clark was a Trustee of Leo House (until cessation) and is a trustee of Southern Hospice Group. The grant agreement was already in place before Mr A Clark was appointed a Trustee of Southern Hospice Group.

25. Controlling party

The Trustees are the controlling party.

Page 63

Southern Hospice Group (formerly St Barnabas Hospices (Sussex) Ltd)

(A company limited by guarantee)

Notes to the financial statements for the year ended 31 March 2025

26. Principal subsidiaries

The following were subsidiary undertakings of the Charity:

Names Company Charity Registered office or principal Principal activity Class of Holding Included in
number registration place of business shares consolidation
number
Southern Hospice Trading 07157835 St Barnabas House, Titnore Retail Ordinary 100% Yes
Limited (formerly St Lane, Worthing
Barnabas Hospices
(Sussex) Trading Limited)
The Martlets Hospice Limited 02326410 802145 Martlets Hospice, Wayfield Provision of Care Limited by -% Yes
Avenue, Hove, England, BN3 guarantee
7LW
The Martlets Trading Co Ltd 04557282 Martlets Hospice, Wayfield Retail Ordinary 100% Yes
Avenue, Hove, England, BN3
7LW
Southern Hospice Group 06250709 Martlets Hospice, Wayfield Provision of Care and Ordinary 100% Yes
Home Care Ltd (formerly Avenue, Hove, England, BN3 welfare services
Martlets Care Limited) 7LW

The financial results of the subsidiaries for the year were:

Names Income Expenditure Profit/(Loss) Net
£000 £000 / Surplus/ assets/(liabi
(Deficit) for lities)
the year £000
£000
Southern Hospice Trading Limited (formerly St Barnabas Hospices (Sussex) Trading Limited) 262 (222) 40 7
The Martlets Trading Co Ltd 829 (829) - (33)
Southern Hospice Group Home Care Ltd (formerly Martlets Care Limited) 829 (806) 23 8

Page 64