Bea14tif141 Comm, • Brilliant LARCHE In tke UK Annual Reoort., 2024 - 2025r CONTENTS LARCHf In th8 UK Introduction l Brilliant care and beautif ul community Ouryear I Who we are,What we do, Where we are OurNumbers l The srars rhar made u5 fhis year who.what and whereweare I Introduction to L'Arche in the UK 9-10 On ourwayto L'Arche 20301 Maximising our resources for mission Beautif ul community l Finding your place, feeding your soul Brilliant ¢are l Friendship, full life and a foothold in society Beiterorganlsed l Building firmer foundarions for flourishing Natlonal Leader- Laura Harper l Finding faith and encountering others Howyou can help i How to support L'Arche in the UK 19 Our Money l The impact we make together 20-63 . strategic and Trustees Report Brilliant care and beaufiful community are whar matter most to people in L'Arche. In community we get to know each other by spending time togeiher. Friendship and rrusf are really imporfant in L'Arche. We wani ro be able ro make choices in our lives and in our Communifies, and creaie more opportunities lo fry new fhings, learn togefher, and help each one of us grow. We know sometimes people don'i know about their righis or how io say what they wanf. Sometimes if can be hard lo speak up. We wani fo be brave in speaking up when people wifh disabilities are trealed unfairly by socieiy in access fo heallh services, ernployment opporfunities and relationships. We wani ro keep having courageous conversaiions abour rhe rhings rhar are good, bul also abour rhe Ihings Ihat are hard and how we can make fhings berrer logefher. In Ihe pages fhaf follow, fhere are plenry of exarllples of whal has given us life over rhe pasi year and whar is challenging us. You'll also discover what we are doing ro gef better organised, in order to have more beautif ul community and brilliant care in L'Arche today Laura Harper Aedan Ma¢Gree¥y Nalional Board Direcror Leader Rebecca Fonseca NSC vice chair Laura Matheson NSC Speaking Council Chair QUR YEAR We welcome our first Soulful Interns in Edinburgh, Manchester and Kent Communities. The talented London Drama crew and cast perform "Thestoryof Babka" as others visit Lady Blair in her home for a Powercuppa and a discussion about work exclusion for people with learning disabilities. L'Arche supporters do all sorts of crazy things for the 50x50x50 challenge- Jarek rnns50kn Ben swims 50 lengths, Sam makes 50 origami objects, John makes 50 pots of jam, Chris plays 50 tunes and Jonathan is on a hunt for 50 people who turn 50 this year! We also launch a "50 Moments of Joy" campaign online. We start the month by connecting with wider L'Arche for the International Light Festival. Richard and Chris give a talk at Eton College. Folk at L'Arche Hlghland reapthe fruits of no mow summer by foraging mushrooms in theirgarden and transforming tart apples into sweetjuice. Nlckexhlblts and sells hlsartwork in a local gallery in Ipswich. Rebound Books make new Christmas decorations from old books saving them from the Tipl The Inverness Courier publishes an article aboutour fantastic volunteers. We celebrate Christmas and do it in style- from wreath maklng competltlons in Highland, candle- making workshops in London, a crocheted Mary and Joseph travel around Manchester, to in-house hairdressing lessons in the Braerannoch House. 25 Richard invites The Duchess of Edlnburyh fo visir L'Arche London and she says... YESI Our Scottish Communities have performative haggis addressing ceremonies with kilts and bagpipes for Burnssupper. nl IP YEAR.. CONTINUES L'Arche Brecon receive high praise in their inspection report! We have conversations about in¢lusion and what it means to be labelled. Manchester folk continue with the monthly Blble and Buttles accessible service for everyone. L"Ar-H£ The Highland Community celebrates their 50thJubll•• Annlversarywith guests arriving from Poland. France and Germany! Sian travels to Vienna to represent L'Arche at the world's largest disability inclusion Zero Project Conference. We have a celebratory nationwide Joyful Rebellion Awards Ceremony! Rebe¢¢ cc rlspln's my frlend. means a lot to me. hink he means moreto e than elther of us know." What a volunteer can offer: Ben. volunteer. Haroun and Laura are working together to understand whatcore members want from local volunteers. In Gina's case. it was just someone to have a coffee with when she was going through a rough patch. But after a while.a deeper friendship grew. i_ 14 OBetter organised People Building firmer foundations for f lourishing In 2024, we consulted across L'Arche to agree a new Vision and Values statement.settlng out what we alm for in L'Arche in the UK, and how we want to be together. Thls statement has become the foundatlon for a new L'Arche Quality Framework and a Behaviours and Skills Framework. Our 2030 action plan sets out how we can get the most out of resources in four key areas- people, money. care and support. housing - in order for L'Arche to survive and thrive in the years to come. In 2024-25.we piloted a new Soulful Internship programme in L'Arche Kent. Edinburgh and Manchester. combinlng a year of living and working In a L'Arche Community while developing spiritual and reflective practice. Three of the six Interns from year one chose to stay on in L'Arche. Afterthe success of year one, we are doubling the cohort of interns in year two. When the Government's 2024 budget imposed a 42 1 increase in our Natlonal Insurance contributions, adding over£lm to our annual pay bill, the immediate priority became our Stronger Finances Plan. which would enable us to weather the slorm. The National Speaking Council work on L'Arche's 2010 plans. Responding to financial pressures. we Implemented a small pay Increase of between l°/0 and 2.6°/o for 80 % of our employees. and temporarily froze pay for hlgher salary bands. In May 2025. we also led an organisation-wide consultation resulting in new employee terms and conditions. These measures helped us report a small budget surplus over the year. Money months. we reconclled our12 flnance databases Into a slngle software system. and updated our budget templates, resulting in more accurate accounting, better use of resources and speedler reportlng of accounts. We introduced monthly management account meetings with all Communities, empowering Community Leaders to have more ownership over their budgets and take swift corrective actlon where necessary. We recrulted credit control speclalists to reduce debts owed to L'Arche by local authoritles. Between February and August 2025. we reduced outstandlng debts from £2.8m to £1.9m. 15 BETTER ORGANISED... CONTINUES Care and support hanksto generous funding grants,we invested in newdigital care (Nourish) and digital rostering (Sona) systems. These have already improved record- keeping. enabled more efficient rostering of assistants. and helped us become more responsive to the changing needs of those we support. Improved the professlonallsm In respondlng to behavlour that can be allenging, by building and training a group of ten practice leaderstoupskills rteams in Positive Behavioursupport (PBS),and we provided training in a auma-lnformed approach to care for our support teams and members of our ationalspeaking Council. We Invested In a system {Carecubed) to audlt our care contracts agalnst natlonal benchmarklng data. including market rates and salaries.to ensure our contracts ref lect the real cost of the care we provide. Using this data. we have successfully renegotiated care packages- in some cases. resulting in an additional £lk income per week. Tony. Chloe and Kathy. supported by John. facilitate a conversation at the National speaklng Councll about L'Arche'$ 2030 plans for care. community and organisation (November 2024) 5UPPOrt ousing We recruited a new Heading of Housing and Health £ Safety. to ensure best practice is standardised across L'Arche around tenancy management. cost modelling and compliance. We created a service improvement plan and began undertaking stock condition surveys of all properties we own. in order to be able to plan maintenance and development overthe next flve years. We have audlted the usage of the propertles we own and manage. As a result. we are selllng one property that Is no longer an essentlal asset. In order to replenlsh our reserves. 16 ing faithand nter In L'Arc Laura Harper atlonal Lea When I was18,1 spent a life-changing year with L'Arche in the Dominican Republic. I discovered what it was like to live simply and closerto nature. I discovered the amazing joy of being alongside people wilh learning disabilifies for the first time. and met people I will never forget. l also found faith in God. I can't pinpoint exactly when it started to mean somefhing for me too, but these times of connection and trust in a higher power began to change how I felt aboutthe world. I too started to see God in the people around me. I started noticing the beauty in creation. and f inding more joy in moments of daily life. When I came backtothe UK I was really blessed to f ind the University Chaplaincy where I was baptised and received intothe church. I've continued on this discovery of my inner life ever since. When I set off, I was a bit nervous as I'd never been a church-goeror really been around Christians before. I wasn'f sure whatto expect from them and whatthey would expect from me. These times of connection and rrusr in a higher power began to change how I felt about the world. It turns out I didn't have anything to worry about. I was made to feel very welcome and it was clear that I was open to be myself and that I would be accepted for who I was. I dldn't have to pretend to believe something I didn't believe. but it was really important to me tojoin in as much as I could to help people live their faith. I remember that one time we were praying in a little chapel in the garden of the house I lived in, and I realised I didn't know the Our Fafher in English, mu mother fongue. though I'd become used to saying it in Spanish. As Christians, or people of all faiths or none. in L'Arche. we don't just want to lead parallel live5. We want to create places of real encounter, so that by sharing. ref lecting and learning together. our spirilual life becomes both deeper and more open to the gift of each another. l am so blessed to have f riends across L'Arche who have walked with me on my own journey. I hope that whatever path of discovery and exploration you are on you will find L'Arche to be a place ofwelcome and openness. I was soon singing along with songs before meals and at prayer times, and accompanying peopleto church sothey could go as it meant so much to them. I was really inspired by the people I lived wilh, both core members and assislanls, by howthey were motivated to help one another. There was something different aboutthe deeply respectful way they were together, which they put down to seeing God in one another. Watch Laura as she shares her story of becoming our national leader: bit.ly/laura_harper 17 Help us grow L'Ar¢he aims to be a place where life lived to the f ull with learning dlsabllltles Is posslble. To do this we are committed to both brilliant care and joyful communiry life, as people with and Without disabilities share friendships, homes and spirituality. Help our Communities to thrive Help us reach more people In a soclal care crlsls. our amblilon IsforL'Arche to be a beacon of what care provlslon can be and whar life wirh learning disa bilities can be- as we imagine the next 5 and 50 years. That means excellence as a state-funded social care provider. but also clarity about our extra impact, funded by those who share ourvalues. To dlsrupt excluslon and crlsls. and brlng Joy and bulld communlty. we need people like you to join us with a single gift, regular support, or maybe a little time. we want to draw out the gifts of people with learning disabilities in our communities as well as sharing these within our society Regulardonations¢ZZll www.larche.org.uk/donate Would you consider making a regular donation or increasing your existing regular donation this year? Your regular donation will help us to plan long-term. It will help to bring security to the people in our communities. It would give us the tools we need to maintain. build and create space in our communities. Ultimately. your gift could help to make known the gifts of people with learning disabilities. Lega￿ Giving bit.ly/larche_legacy Would you conslder leavlng L'Arche a glft In your wlll or settlng up a new wlll using L'Arche's f ree will writing service? 66 To know that our legacy gift to L'Arche will go on to give someone elsethe life and opportunities that my boys have had. gives me great comfort. 99 Rosemary Bull (leffi wifh her sons Philip and Richard. A f ree will or codicil service is available and you can access this via our website or by calling 0161438 2832 18 Thank you for your donations. legacies and f undralslng challenges. We wanr to change the world: Your suppprt over the past year has helped us to progress our vision. suppprtour people and improve our systems. Please continue to support us where you can fo help L'Arche survive and thrive for a new generation. When if is unfair and unkind fo people wifh learning disabilities. A special thank you to all our funding partners for your generous support. We want a radically inclusive world where people with and without learning disabilities thrive together in body, mind and spirit. When it does Ihings to people with disabilifies. nor with them. When if disconnecfs us from others and from our full selves. 2024 - 2025 Income General Donation5 £860.314 £421.698 £48,481 £17,799.780 £2.696.263 £335.529 DonaTions for UK projects Donbtions for L'Arche Inrernarion31 4 Support Income Housing Income 6 other Income Income Total £22.162.065 2024 - 2025 Expenditure Employmenr cosrs Living cosrs Housing costs Admin and trèvel £16,727,745 1607.270 7 8 910 £2.287,232 £522.017 £357,037 £562.267 2 - £8,207 £531,607 £420,508 £134.047 Total £22.157.937 Legal costs 6 Support costs 7 other costs Expendlture Depreciation Fundraising and Communicarions 10 Donations fo L'Arche Infernationél and ofiie" cha"Ir es 19 TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED JULY 2025 L'ARC I￿ the UK IA company limited by guarantee) Registered number.. 1055041 Charify number.. 264166 and SC038493 20 TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025 CONTENTS 22 Reference and adminisrrarive details of the Charitable Company, its trustees and advisers 23 Trustees, report 35 Independent auditor's report on the f inancial statements 29 statement of f inancial activities 40 Balance sheet 41 Statement of cash flows 42 Notes to The financial statements LARC lfft the UK 21 REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITABLE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JULY 2025 Trustees Aedan MacGreevy Nigel Mapp Joanna Mccall (resigned 24 June 2025) Anne Winfer Marfin Weale Jane Brown Pefer Oakes Roland Clark (resigned16 Ociober 20241 Isobel Gray Susan Williams Jonathan Carter iappointed 17 October 2024) Registered office L'Arche Nafional Office Romero House Westminster Bridge Road London SEI 7JB Independent Audltor Sumer Audifco Limifed New Charrford House Cenfurion Way Cleckhealon Wesl Yorkshire BD19 3QB 22 TRUSTEES, REPORT FOR THE YEAR ENDED 31 JULY 2025 The trustees are pleased to present their Strategic and Trustee Report for the year ending 31st July 2025. including the preceding pages, which are also prepared to meet the requirements for a Directors. Report and Accounts for Companies Act purposes. The Financial sfafemenfs comply wifh the Charities Acr 2011, rhe Companies Act 2006, rhe Memorandum and Arficles of Associafion, and Reporfing by Charifies.. Stafemenf of Recommended Practice applicable to charifies preparing rheir accounls in accordance wifh rhe Financial Reporfing sfano1ard applicable in the UK and Republic of Irelancl IFRS102). National Board National Leadership Team Community Leaders Aedan MacGreevy National Chair John Casson Nafional Leader (until August 20251 Llls Revell Kent Sue Wllllams National Vice Chair Laura Harper Director of Care and Community (until August 20251 National Leader If rom Augusr 2025) Dawn Dacosta Director of Care and Communities If rom September 2025) Alexina Mwense Direcror of Finance and IT Chrls Gehrke Highland Jane Brown hrtanchester and whistleblowing Lead stacey Owen Liverpool Jon Carter National Treasurer Lucy Winter London (until October 2024) Nlcky Martln London (from January 20251 Peter Oakes Safeguarding Lea James Cuming Regional Leader South and wales (until Augusr 2025) Des Kennedy Regional Leader Norfh and Scotland Sarah Shallis Bognor Regis (until June 2025 Martln Wheale Brecon Jlll Farmer Brecon Nlgel Mapp Sam Davies Director of Fundraising and Comms David Knowles Preston lunril June 2025 Ray Jones Preston (from June 2025 Isobel Gray Edinburgh Loulse Carter Mission and Formation (until 2025) Lucy Wlnter Director of People and Culture lon maternitu leave from May 20251 Laura Mayes InTerim Direcror of People and Culture f rom May 2025 Davld Hockley Ipswich Anne Wlnter (f rom September 2023) Klrsty Maccrlmmon Edinburgh lon sick leave from July 2024 to April 2025) David M¢Cue Covering CL role in Edinburgh (Jan - Apr 2025 NemTomlinson Manchester 23 TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025 OBJECTIVES AND ACTIVITIES STRATEGIC REPORT ACHIEVEMENTS AND PERFORMANCE Maln achlevements of the Charltable Company Resilience and Quality: L'Arche Communities showed resilience in delivering high qualiry relalional care and fosfering communiry life in rhe face of severe ongoing pressures on our secfor, and changes in bofh Ihe Nafional Leadership Team and Communify Leader Group. We received several posilive reporfs from our respecfive care regulators and introduced a new Qualily Assurance approach ro encourage ref leciion and learning io supporf Brilliant Care and Beaufif ul Community. Savings.efficiencies and increases In Income: Additional f inancial pressures were created by increases in Employers, National Insurance ContribLJtions and above-inf lafion increases in the Nafional Living Wage which the Government required but did not f und. Savings, effi.ciencies and increases in income of £l.Imillion f rom across the organisation were idenfif led in rhe 'sfronger Finances Plan, fo meef ihe f unding gap. Vision and ambition: We launched worksrreams ro operarionalise ihe key ambifions of rhe 2030 sfraregy We also developed 2030 plans for each Communily ro idenrify key opporiunilies and Actions to meet the ambitions set out in the L'Arche 2030 Strategy. We launched the Impact Survey and the spirituality Big Invitation, and we expanded the Voice and Power project. systems and digitisation: L'Arche confinued to embed rhe Digifal Care Managemenf Sysfem and pilofed an Elecfronic MAR Sysfem. L'Arche also made improvemenfs to Business Cenfral by moving ro a single dafabase for f inancial managemenf and reporfing. Cornmunity.Celebration and Outreach: L'Arche CommuniTies continue to be places where people with and without learning disabilities live, share and grow together. In 2025 we celebrated birthdays and anniversaries We performed pantomimes, we hosted fairs. we had parties and Hopefest. We also mourned together and celebrated the lives of people who have died in our Communities. 24 TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025 STRATEGIC REPORT (CONTINUED) ACHIEVEMENTS AND PERFORMANCE (CONTINUEE)) Key performance indicators Care. Support and Housing.. We track individual care and support oufcomes fhrough qualiry assurance systems, peer audil, and our accounfabilify io rhe care inspecforafes. The accessibility and fimeliness of compliance and Qualiry Assurance has been sfrengrhened by ihe ongoing roll-ouf of our Care Managernenf Sysfem and L'Arche Qualify rneefings. We have infroduced rhe L'Arche Impacf Survey and ref reshed our Besf Pracfice Forums for Care and Supporf and for Housing and Heaifh and Safely. We continue to make progress audifing and tracking Healih and Safety and Housing compliance with new ceniral sysiems. People and Culture: Employee engagement. performance and well-being has been tracked through the Diversity Survey and the new L'Arche Impact Survey. Both show extremely high levels of felt belonging and alignment wifh organisafional mission, but more work lo do on work-life balance, and opporlunifies and support for people with cerfain profecfed characferisfics. We have infroduced a new Supervision and Line Managemenf Policy and Behaviours Frameworl and enhanced fraining for leaders and line managers. Financial performance: Is tracked through regular monthly managements accounts prepared using our newly consolidated accounting system and monthly meetings. We have established a dedicated Credit Control and Contracts team within the Finance f unction, which has reported recovery of a large portion of our old debts Furthermore, our cash flow forecasting is much more robust, helping the trustees to make more informed investment decisions. Factors relevant to achieving objectives L'Arche has been through a prcKess lo ser a sfrafegic vision and plan fo survive and fhrive in 2030. This broad process includes data analysis, secror benchmarking and best pracrice, and broad consuiraiion and co-production. In terms of vision, the 2030 Strategy builds on the work of the last 2 years to clarif y and build ownership of a strong ambition for L'Arche to remain distinctive in its commitment to mutuality, spirituality. and locality. It sets out our ambition to achieve a stronger reputation for innovation and excellence in power, voice, and opporlunifies for people wifh learning disabilifies especially in the areas of sex and relafionships, employmenf and opporfunity, and loss and disfress. In ferms of implemenfafion, rhe 2030 approach conf ronfs rhe challenge of achieving rhese ambilions in rhe face of severe f inancial and recruifment shorfages and de-humanising syslems in our secfor and sociefy. The approach focuses on an organisafional improvernenl agenda in lerms of rhe disciplines needed ro ger ihe most from the four key resources on which L'Arche depends. people, money, houses, and care and suppori practice. Across each of these four areas, the focus is on clarity of responsibility and accountability, on relevant and Timely data, on simplicity and consistency of processes, on maximising income. and on more efficient and specialised support f unctions. Investment policy and performance In accordance with the investment powers coniained in the Articles of Association, monies not immediaTely required for the day-to-day operation of the Company may be held in investments, securities or property. During the financial year concerned, the Company has sought to minimise risk by holding its reserves in instant access cash deposits. 25 TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025 STRATEGIC REPORT (CONTINUED) FINANCIAL REVIEW Golng concern The trusfees have reviewed the f inancial performance and the general reserves position in 2025. L'Arche continues fo operate In a challenging f inancial environment, compefing for f unding f rom Local Authorilies who are under long-rerm financial pressure. Inf lafionary increases, the rise in Ihe cosf of Nl and increases ro the Nafional Living Wage increase our cosf-base while Ihere is no coherent long-lerm clear sfrafegy for f unding care and suppori fo aduifs wilh learning disabilifies. Apart f rom Local Authority f unding, L'Arche also funds some of its operations through fundraising income. The fundraising environment remains challenging after the COVID pandemic and cost of living pressures L'Arche continues to benef it f rom individual giving, regular donor and trust f undraising, including multi- year f unding for specif ic projects. To address fhese challenges, we insfifufed rhe 'sfronger Finances Plan, which included ensuring robusr reforecasfing of rhe expecfed ourrurn was irnplemenfed fo ensure quick corrective acfion was faken. In 2024125,we released one of our non-core fixed assefs as parl of our sfrafegy ro sfrengrhen our cash reserves. Additionally, we continue to review our contracts and our costs to ensure that our income is maximised and that our resources are stewarded wisely. taking action to ensure that underfunded services are addressed We have invested in key digital inf rastructure and Systems in recent years and are seeking to invest in recruiting and retaining assisfants, leaders and specialists we need to continue to deliver our f uture strategic plans. Truslees have prepared a cash flow forecasrro March 2029, and are confidenr thai the charify has adequare reserves ro conrinue its operarions for this period. Thus, rhey coniinue io adopt rhe going concern basis of accounting in preparing rhe annual f inancial statemenis. Reserves policy Like other organisations that support people with learning disabilities. and in accordance with Charity Commission guidance on prudent f inancial management and operational planning, L'Arche maintains a General Fund alongside its Development and Fixed Asset Funds. (see Note17 of the Financial Stafements). On 31sf July 2025, L'Arche held tolal reserves of £12,046,355 {2024'. £12,047,058). Free reserves held in the General Fund fofaled £2,152,295 {2024.' £1,831,113), ref lecting an 1890 increase. The Unresfricfed Developmenl Fund comprises donafions and granfs received wifhouf specif ic resiriclions. Trusrees allocare ihese unresiricled f unds wifhin Ihe relevanr Communify. The General Fund is held primarily io proiect againsi inierruptions to our main income f low and ro susrain working cash balances to cover f luctuations in operating costs. The currenf level of unrestricted General Funds of £2,152,295 (2024. £1,831,113) represenfs 5 weeks (2024. 4.8 weeks) of Communiry operafing expenditure. This shows a slighf increase in weeks covered, apart from thaf, our services are mosfiy of sfafulory nafure, Iherefore, we have some profection from incorne f luctuafions, despife fhar, rhe Irusfees aim, over rhe rnedium term, to hold reserves covering al leasf 2 monlhs19 weeks) of operalions. 26 TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025 FINANCIAL REVIEW (CONTINUED) Financial review In 2024125 fhere was an organisalional focus on sfrengrhening L'Arche's f inancial posifion which has resuifed in a breakeven posifion, following a few years of def icits. This focus helped fo reduce rhe gap creared by Ihe increase in Nl in rhe Ocrober 2024 budget and cosr-of -living-linked pau increases above-inf lation in 2025, which were not f ully f unded by Local Authorities. The f inancial improvement seen in 2024125 is the result of greater understanding. ownership and collaboration of f inancial matters across the organisation and the implementation of the 'Stronger Finances Plan, to make savings, efficiencies and increase income. We have also sfrengrhened rhe use of financial managemenf informafion through monfhly managemenf accounts meelings, improved and timely f inancial inf ormation,. investmenf in sysfems., reviewing our conlracls and renegoliafing with rhe Local Aufhorilies,. sfabilising our reserves,. and improved f inancial confrols. We consolidaied our accounring sysrem inro a single daiabase, rherefore enhancing accuracy, completeness, and timeliness of our management accounts. A Credit Control and Contracts team was established within Finance. This has led to a recovery of over a third of our old debt. We continue to see progress in 2025126. Additionally, in July 2025. the trustees approved a surplus budget for 2025126, because of extensive review of income and expenditure at Communities level. Furthermore, in 2025 we f inalised the transfer of Core Member records fo rhe Nourish digital platform, replacing paperbased care plans. This has meanf more accurafe, detailed, and easily accessible digifal records, supporfed improved care qualiry and enabled faster Idenfif icafion of frends and gaps. Financial results The Statement of Financial Activities shows a near breakeven position of def icit of £703 {2024". Def icit £907,475) The trustees consider that the Charity has one operating activity the care and support of people with learning disabilifies, including residential care af selected sites across the UK. Donations and grants Income f rom f undraising has reduced to £1,330,493 (2024.. £1,551,372) This meant that Unrestricted donations and legacies decreased as follows £860,314 (2024 £1,135,426}. However, included in The Unrestricted donaTions are legacies of £330,515 [2024.. £352,500) maintaining a steady stream of income over the last 2 years The overall reduction is primarily due to a reduction in our individual giving f rom a small group of people who have remained dedicated over the years. UK restricted donations increased to £421,698 (2024. £289,073) this is made up mainly of grants from Trusts and Foundations, whom the Fundraising ream have been working ro build and maintain relationships. We confinued fo sfrengthen our seasoned and disciplined Fundraising and Communicalions team, ref lecfed by our continued invesfmenf info rhe f uncfion. In 2025 our expenditure for rhe year was £420,508 (2024 £387,690). Review: Overall this remains a good result in very challenging times.and we continue to be grateful for the support offered by both long term and new supporters. 27 TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025 FINANCIAL REVIEW (CONTINUED) Income from charitable activities Our income f rom Charifat)le Acfivifies rose by £2,713,605 fo £20,820,179 (2024: £18,106,574). Included in rhe above is our support income which increased 10 £17,799,780 (2024.. £15,685,847) and housing income to £2,696,26312024.' £2,287,439). In 2025, we invested in a benchmarking system io support the review of support packages to respond adequately to changing needs and historical underf unding. Additionally, we are reviewing our referral process and policy in 2026 to ensure it is robust and f it for purpose. Review.. Securing annual fee increases f rom some local authorities remains challenging. especially in London and the South-East. In Scotland. Government policy was to fund us to pay assistants Real Living Wage as defined by the Living Wage Foundation and annual uplifts reflect this. In England. Local Authority awards were mixed. The average uplift in the UK in 2024 was 6.30￿ against a 9.80 increase in the National Living Wage, which drives our pay scales (which in 2024 started from an entry level hourly rate between NLW and RLW). Dlrect charltable expendlture Expendifure on our services increased by £1,703,869 fo E21,603,382 (2024.. £19,899,513). The main facfors confributing to fhis increase are sfaffing and occupancy cosfs. Salary costs rose f rom £15,336,880 to £16,774,356 whilst occupancy cosfs rose from £1,441,769 fo £1,867,448 in 2025. Review.. Recruitment and retention remains challenging for L'Arche, as it does for other social care organisations. In previous years we have benefited from the Health Care Worker visa route. However. increased earning thresholds and wider changes in immigration rules have made thls more Ilmlted and are Ilkely to further Impact L'Arche In future years. The NLW has contlnued to Increase above the rate of Inflatlonary increases from local authorlty funders. In Aprll 2025 there was also a significant increase to staffing costs as a result of changes to Employer Nl contributions. We have continued to focus on financial sustainability through regular financial management meetings. embedding consistent processes and identifying opportunities to reduce expenditure. Charitable donations Over the years L'Arche has supported L'Arche Benevolenf Trust with a donation of £3,000 annually. However, in 2025 no donation was made12024 £425) L'Arche Benevolent Trust is a registered charity with the objectives of assisting employees and ex-employees of L'Arche who mau require f inancial support because of personal hardship On the other hand, donations to L'Arche International totaled £133,986 (2024. £281,300). Balance sheet Balance sheet net assets have largely remained the same at £12,046,355 {2024 £12,047.058). Cash balances at £1.459,425 [2024.. £874,183) ref lect a signif icant improvement in our cash, increasing by £585,242. a 67 1 rise This is mainly due to improved credit control processes and the sale of a non-core asset. Debtors as at July 2025 were £3,435,510 (2024.£3,632,474). 28 TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025 Rlsk reglster The L'Arche Board and nafional execufive team track risks across 5 risk areas (f inancial sustainabiliry., mission and identiry,. care, support and housing., people and culture,. and general). We have reorganised rhe leam of nafional Directors around similar broad areas, which also map onlo Ihe priorifies of Ihe 2030 sfrafegy, and fo a new sub-commirree sfruclure for rhe Board. The last year saw Ihe implementation of the sironger Finances Plan which reduced Ihe likelihood of ihe risk around f inancial sustainabiliTy New risks around Information Management have been identif led, whilst other risks around care and support, and recruitment and retention remain stable The most serious risks we now face are lisfed below. Financial Sustainability: We are unable to generate sufficient headroom fo pay Nl and NLW increases without depleting reserves and closing services. Remuneration and rewards.. L'Arche is unable lo offer rhe salaries, lerms and condifions lo recruif and refain Ihe employees we need. Finance systems and staffing: Recruitment and turnover problems, change management challenges, and workloads, leave Finance Team unable to provide the information and support needed Crisis pressure on culture.. Urgenf f inancial measures erode the morale and culture of Communifies., rhe wellbeing of core members and assisfants., and the fime, space and resources for mufualiry and spirifualiry. Information Management: Policies and processes are nor robusr and consislenfiy implernenled, which rnean thar we are noi complianr wifh GDPR and Charity law. 29 TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025 STRUCTURE, GOVERNANCE AND MANAGEMENT Organisational structure L'Arche is a company limited by guarantee and a charity registered in England and Wales and in Scofiand. The organisafion was incorporafed on 18th May 1972 and is currently governed by Articles adopfed on 24th February 2018. Ifs principal objecfs can be summarised as providing support and rraining for people wilh learning disabililies by opening and running Communiry nefworks, homes and work opportunities, fhereby fosfering personal developmenf and cilizenship There are curreniiy ten L'Arche Communities in ihe UK, with one project under development. A lypical Community comprises a number of houses, supported living settings and, where appropriaTe and commissioned, day activities, spread out within an urban setting and run as a unif led service In this way, Community members are more easily able to integrate with the wider neighbourhood and thereby develop and maintain important links with individuals and groups beyond L'Arche. Management The Nafional Leader/CEO is appoinfed by rhe Nalional Board and reporfs fo rhe fruslees fhrough rhe Nalional Chair. As leader of rhe execufive rllanagemenf Siruclure, rhe Nafional LeaderlCEO is responsible for supervising a ieam of four Directors of . Care and Communilies, People and Cuifure, Finance and IT, Fundraising and CommunicaTions. All members of this Leadership Team are permanent emplouees The National Leader/CEO is also a member of the L'Arche International Leadership Team and reports to the International Federation of L'Arche fhrough the acting International Leader. Communifies are supervised and supported by line managemenl through either rhe National Leader, rhe Director of Care and Communifies, or the Regional Leader covering Scofiand and rhe Norfh of England. These line managers are responsible for supponing ihe Communilies, supervising Communily Leaders and ensuring rhe Communifies discern fheir local mission priorifies and objeclives, while living failhf ully L'Arche's Idenrilu £ Mission and being complianr wilh commissioning and starurory requiremenis. Day-to-day responsibility for each Community is delegated to the Community LeaderlDirecfor who is supported by a coordinating team, typically responsible for care and support services, housing. HR. day activities, and administration. Members with learning disabilities are encouraged and enabled to play an active part in decisions regarding their own support, their house or support service, and their Community. L'Arche members with learning disabilities contribute to UK-wide governance and management decisions fhrough a represenfative Nafional speaking Council, which meefs fwice a year, and once a year wifh rhe Board. 30 TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025 STRUCTURE, GOVERNANCE AND MANAGEMENT (CONTINUEE)) Trustees L'Arche is governed by a National Board, the members of which are Directors of the Company wifh frustee responsibililies. The lull board has11 posifions (of which 9 were f illed at year end) and normally meefs four fimes a year in addifion fo rhe AGM. Board members serve a maximum of12 years. Recruitmenf of new Nafional Board members resuirs f rom a regular review of Ihe necessary mix of skills and experience required for governance. Vacancies are adveriised in naiional and local publicaiions as well as ihrough professional agencies and other networks. PoienTial candidates are appoinfed after a process of inferviews, references and other checks. New members, induction and training is achieved through a combination of written material, meetings and training daus, in addition to local Community visits, to ensure they are not only aware of their responsibilities as trustees but understand the ethos and practice of L'Arche in supporfing people with learning disabilities. Equal opportunities We use an Applicant Tracking Sysiem ihar monitors our equal opporiunities data and anonymises applicani information. enabling a robust shorT-listing process. Through this platform provider we receive national training in inclusive recruitment and are developing our approach to improve our practices in this area Our biennial Equality, Diversity. and Inclusion {EDI) survey has achieved high levels of staff engagemenf. We continue to welcome new supporf workers on Health Care Worker visas, significantly increasing our workforce diversity nationwide. The Senior Care Worker visa route has also allowed us to retain falenfed individuals in more senior roles. We analyse Ihe results of our annual employee survey, focusing on profecfed characferisfics, including disabiliry, ro idenfify areas for improvement. This ensures our commifment to diversiry, equality, and inclusion is Iranslaled info acfionable pracfices. Our national Equlty, Diversity, and Inclusion (EDI) group works with the Director of People and Cullure, helping to develop and enhance our EDI pfaciices. Disabled employees policy Our mission includes celebraling the unique value of every person and recognising our need for one anolher. Key elemenfs of fhis mission include our cornmilrneni fo giving f ull and fair consideralion fo applicanis with disabililies, taking inio accounr their apiifudes and abilities. We supporr ihe coniinued employmenf and Iraining of individuals who become disabled, including offering reasonable adjustments and f lexible working arrangements wherever possible. We provide reasonable adjustments to training opportunities to ensure accessibility for disabled employees, and we caref ully consider and respond to Access to Work requests 31 TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025 STRUCTURE, GOVERNANCE AND MANAGEMENT (CONTINUEE)) Engagement with employees We have maintained channels for engaging with employees. The Belong newslefter remains a key medium for communicating news, updafes, and information fo everyone across L'Arche. The results of rhe Inclusion survey are shared widely across all areas of L'Arche, along with updafes on our progress wifh Equify, Diversiry, and Inclusion (EDI). We also run peer nefworks, such as live-in communiry worker nefworks, providing a saf e space for individuals fo share fheir experiences and challenges in fheir roles. Mosi employee consultaiions occur locally, including regular gatherings of all Community members, IisTening groups, CommuniTy Councils, and assistanT assemblies. Groups of employees and service users collaborate to develop local plans and recruit senior leaders Employees f rom all locations and roles participate in listening groups and steering groups for key national initiatives During this f inancial year, we held a collective consultation process. with elected represenfatives f rom across all of our Communities. This consultation rook place to consider proposed changes to sick pay and life insurance benef its. We experienced strong parficipafion in rhe process, wifh feedback received from employees af all Comrnunifies. Nafional and Regional Leaders regularly visil Cornrnunilies fo hear direcfiy f rom employees af all levels. As a nor-for-profif charify, we do nol share profils wifh employees, buf we widely share performance news, including care inspection reports, internally and via social media. The Directors remain acurely aware of The challenges our employees face in the social care secTor, where remuneration is low. All decisions are made by balancing rhe effects on our f inancial viability, our workforce, and the people with disabilities we support. Remuneratlon pollcy As parf of our cornmitrnent ro recruifing, refaining, and recognizing our falenfed fearn, we have in place a clear remuneralion policy. We use bofh seclor-based and ofher relevanr t)enchmarks, as well as considering infernal pay relarivilies, ro ensure our salaries are fair and comperifive. Our sysrem of salary bands ref lects diff erenl levels of responsibility and offers opporlunilies f or pay progression. We have clarif led our Employer Value Proposilion, clearly outlining ihe tangible and intangible benef its of working for L'Arche, and ensured that all current Terms and Conditions of employment are accurately ref lected in the remuneration policy These Terms and Conditions were revised in 2025 in line with new legislation and to achieve a fairer rewards package targeted to maximise recruitment and retention. 32 TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025 STRUCTURE, GOVERNANCE AND MANAGEMENT (CONTINUEE)) Fundraising At L'Arche. our small team of in-house staff run f undraising campaigns and activities in line with the Charfered Instifufe of Fundraising's Code of Fundraising Pracfice, and a L'Arche Ethical Fundraising Policy. We communicate fundraising messages by posf and email, responding io our donors and supporlers, wishes. As a Charily regulared by rhe Fundraising Regulaior, we work ro achieve ihe highesi srandards in how we communicaie and fundraise with our donors and supporiers. Our approach ro developing long- term, and mutual relationships with our supporters underpins our approach TO our f undraising and communications activities. We use the services of a few caref ullu selected external companies to support us with occasional specialisf skills to help us deliver specif ic activities, including external appeal mailings and development of new fundraising initiatives. We manage and monifor all fundraising work underfaken by others by providing clear guidelines and work brief s, spot checking, and including f undraising staff on appeal mailing lists. Over rhe pasr year, we have nol received any f undraising complainls. Fundraising complainfs can be made rhrough our f undraising@larche.org.uk email channel. We protecf vulnerable people by confacTing known donors and supporTers, curating the sfories we tell caref ully to avoid breaches of data protection f or participants. by embracing ethical content creation, and reducing shock and distress for those we communicate with We provide our staff with a variety of safeguarding and other relevant training, including Oliver McGowan training. Company. Charity and tax status The Company is limifed by guaranfee, wifh no shareholders. The liabiliry of rhe SO members (2024: 50) is limited ro £1 each. The Company is regisrered as a charily in England and Wales and in Scoriand wilh rhe Office of Scollish Charify Regulafor. The Company is not liable to income tax, corporation tax or capital gains tax. It is not registered for VAT, since taxable supplies are below the level requiring registration. Public benefit disclosure L'Arche has referred fo rhe Charify Commission's guidance on public benef it when reviewing our aims, objecrives and acrivifies and can conf irm thar the Charify's trustees have complied wirh the duty in s.4 of the Charifies Act 2006 to have due regard 10 the Charity Commission's published general and relevani sub-sector guidance concerning the operation of the Public Benef it requirement under that Act. INVESTMENT POLICY In accordance wifh rhe invesfmenf powers contained in the Arficles of Associafion, monies nor immedialely required for Ihe day-ro-day operafion of rhe Company may be held in invesfrnenfs, securifies or properly. During rhe financial year concerned, rhe Company has soughr io minimise risk by holding lis reserves in insianr access cash deposits. 33 TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025 STATEMENT OF TRUSTEES, RESPONSIBILITIES The trusfees (who are also the directors of the Charitable Company for the purposes of company law) are responsible for preparing rhe trustees. report including the Strategic report and the f inancial sfatements in accordance wifh applicable law and United Kingdom Accounfing standards {United Kingdom Generally Accepted Accounfing Practice). Company law requires rhe Iruslees to prepare f inancial sfalemenfs for each f inancial year. Under company law, rhe Irusfees rnusf nor approve Ihe f inancial sfafemenfs unless fhey are safisf led fhar rhey give a frue and fair view of rhe sfafe of affairs of Ihe Charifable Company and of ifs incoming resources and application of resources, including irs income and expendilure, for that period. In preparing these f inancial stafements, the trusfees are required to.. select suitable accounting policies and then apply them consistently,. observe rhe mefhods and principles of the Charilies SORP (FRS102),' make judgmenis and accouniing esrimares rhar are reasonable and prudenr, state whether applicable UK Accounting standards (FRS102) have been f ollowed, subject to any material departures disclosed and explained in the f inancial stafements", prepare the f inancial sfafemenls on the going concern basis unless if is inappropriafe fo presume fhar rhe Charitable Company will conlinue in business. The frustees are responsible for keeping adequafe accounfing records Ihal are sufficienr ro show and explain the Charitable Company s transaclions and disclose wifh reasonable accuracy ar any time rhe f inancial position of rhe Charitable Company and enable ihem to ensure rhar the f inancial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charitable Company and hence for taking reasonable steps for the prevention and detection of f raud and other irregularities Disclosure of information to auditor Each of the persons who are irusrees ai ihe lime when ihis trusiees, report is approved has conf irmed that. so far as that trustee is aware, there is no relevant audit information of which the charity's audifor is unaware, and rhar rrusree has iaken all rhe sreps rhar oughi ro have been iaken as a rrusree in order 10 be aware of any relevant audit inf ormation and to esiablish thai the charily s auditor is aware of That information. Audltor Sumer Audifco Limiled were appoinfed as audilor fo rhe company following BHP LLP becoming parl of rhe Sumer Group on 31 December 2025, which required a change in audif f irm lo comply wifh applicable regulaiory requiremenrs.ln accordance wifh secrion 487(2) of Ihe Companies Acr 2006, Sumer Audilco Limited are deemed to be reappointed annually. Approved by order of the members of the board of trustees and signed on their behalf by.. VMW Aedan MacGreevy Chair of Trusfees Dale: 19.2.2026 34 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF L'ARCHE We have audited the f inancial statements of L'Arche (the 'charitable company,) for the year ended 31 July 2025, which comprise rhe sfafement of f inancial activities, the balance sheet, the statement of cash f lows and notes to rhe f inancial sfafements, including signif icant accounting policies. The f inancial reporling f ramework fhaf has been applied in their preparafion is applicable law and United Kingdom Accounting Slandards, including Financial Reporfing Standard102 The Financial Reporling Slandard applicable in rhe UK and Republic of Ireland (Unifed Kingdom Generally Accepfed Accounfing Praclice). In ouropinion the financial statements: give a true and fair view of the stare of ihe charilable corllpany s affairs as at 31 July 2025, and of ITS incoming resources and application of resources, including its income and expendiTure, forThe year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice", and have been prepared in accordance wifh Ihe requiremenls of the Companies Act 2(KJ6,. and have been prepared in accordance with rhe Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006. Basis for opinion We conducfed our auclil in accordance with Infernational Slandards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under Ihose sfandards are f urfher described in Ihe audilor responsibililies for rhe audii of the f inancial statements secrion of our reporf. We are independeni of the charirable company in accordance with Ihe eihical requiremenis that are relevanr ro our audit of Ihe f inancial statements in the UK, including the FRC'S Ethical Standard, and we have f ulf illed 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 audifing rhe f Inancial sfafements, we have concluded thar rhe frustees. use of Ihe going concern basis of accounfing in rhe preparalion of rhe f inancial sfafemenls is appropriafe. Based on the work we have performed. we have not identif led any material uncertainties relating to events or conditions that, individually or collectively, may cast signif icant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the f inancial statements are authorised for issue. Our responsibilifies and rhe responsibilities of the frustees wifh respect ro going concern are described in rhe relevanf sections of fhis reporl. other Informatlon The other informafion comprises rhe information included in the frustees. report, other than rhe f inancial statements and our auditor's reporr rhereon. The fruslees are responsible for the other information. Our opinion on the f inancial statemenfs does nor cover the ofher information and, excepr ro rhe exlent olherwise explicifiy stared in our reporl, we do nol express any form of assurance conclusion rhereon. Our responsibiliry is fo read Ihe other informafion and, in doing so, consider whefher the ofher inforrnafion is maferiallu inconsislenf wilh rhe f inancial sfafemenfs or our knowledge obfained in rhe course of rhe audif or ofherwise appears fo be rnaferiallu missfaled. If we identif y such maferial inconsisiencies or appareni maierial missrarements, we are required ro deiermine whether this gives rise ro a material misstatement in the f inancial 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. 35 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF L'ARCHE oplnlons on other matters prescrlbed by the Companles Act 2006 In our opinion. based on the work undertaken in the course ol the audit." rhe informafion given in the frusfees. retx)rf, which includes rhe sfrafegic reporl and rhe direcfors. reporf prepared for rhe purposes of company law, for rhe f inancial year for which rhe f inancial stalements are prepared is consislenf wifh rhe f inancial sfafernenls,. and rhe siraregic reporr and Ihe direciors, reporf included within ihe rrusrees, reporf have been prepared in accordance wilh applicable legal requirements. Alatters on which we are required to report by exception In rhe lighf of rhe knowledge and undersfanding of the charifable company and ifs environmenf obfained in rhe course of Ihe audit, we have nol idenlif led maferial missfalemenfs in rhe sfrafegic reporf and rhe direcfors, reporf included wifhin rhe Irusfees, reporr. We have nothing to report in respect of the following matters in relation to which Ihe Companies Aci 2006 and the Charities Accounts {Scotland) Regulations 2006, requires us to report to you if, in our opinion.. adequafe accounting records have not been kept, or returns adequafe for our audif have nor been received f rom branches nor visifed by us., or rhe f inancial Siaremenls are nor in agreemenr wifh rhe accouniing records and rerurns., or certain disclosures of trustees, remuneration specif led by law are not made.. or we have nor received all rhe informafion and explanafions we require for our audir. Responsibilities of trustees As explained more f ully in rhe trusrees, responsibilifies sraiemenr, the rrusiees (who are also ihe direciors of the charitable company for the purposes of company law) are responsible for the preparation of the f inancial statements and for being satisf led that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of f inancial statements that are f ree f rom material misstatement, whether due to f raud or error. In preparing the f inancial statemenfs, the frustees are responsible for assessing rhe charitable company's abilify fo confinue as a going concern, disclosing, as applicable, marrers relafed fo going concern and using the going concern basis of accounling unless rhe trusfees eilher intend lo liquidafe the charifable company or ro cease operaiions, or have no realisiic airernarive bur ro do so. Audltor responslbllltles for the audlt of the f Inanclal statements Our objeclives are lo obta in reasonable assurance abouf whether the f inancial stafements as a whole are f ree f rom material missfafement, whether due to f raud or error, and fo issue an auditor's report rhat includes our opinion. Reasonable assurance is a high level of assurance, buf is not a guarantee thar an audif conducted in accordance wifh ISAS (UK) will always detecf a material misstatemenf when it exisfs. Misslafemenfs can arise f rom fraud or error and are considered maferial if, individually or in rhe aggregale, Ihey could reasonably be expecfed fo influence rhe economic decisions of users faken on rhe basis of fhese financial sfafemenfs. 36 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF L'ARCHE (CONTINUED) Irregularities, including f raud, are insfances of non-compliance with laws and regulations. We design procedures in line wifh our responsibilities, outlined above, fo detect material misstatemenfs in respect of irregularities, including f raud. The exfenl to which our procedures are capable of defecfing irregularilies, including f raud is derailed below: the senior statutory auditor ensured Ihai rhe engagemeni ream collecrively had the appropriate competence, capabilities and skills TO idenTif y or recognise non-cornpliance with applicable laws and regulations.. we identif led the laws and regulations applicable to the parent charitable company through discussions with directors and other management.and from our commercial knowledge and experiences of the charity's sector.. we focussed on specif ic laws and regulations which we considered may have a direct material effect on the f inancial statements or the operations of the charitable company, including the Charities Act 2011, Companies Acr 2006, taxation legislation and data protection, employment, and health and safety legislation (including coc documentafion),. we assessed rhe exfent of compliance wifh the laws and regulations identif led above throLJgh making enquiries of management and inspecfing legal correspondence fhroughour,. identif led laws and regulations were communicated within the audit team regularly and rhe ream remained alert to instances of non-compliance throughout the audir. We assessed Ihe suscepfibiliry of rhe charity's f inancial slatemenfs fo rnaferial missfafement, including obfaining an undersfanding of how fraud mighf occur, by,. Making enquiries of management and trust*s as to where they considered there was susceptibility to f raud. their knowledge of actual, suspected and alleged f raud. Considering the internal controls in place to mitigate risks of f raud and non-compliance with laws and regulations. To address rhe risks of fraud through managemenf bias and override controls we.. Performed analyrical procedures to idenfif y any unusual or unexpected variances. Testedjournal enfries fo idenlify unusual fransacfions. Assessed whefherjudgmenfs and assumplions made in defermining rhe accounting estimates sef our in note le were indicafive of potenfial bias. Investigaled rhe rafionale behind significanf or unusual fransacfions. In response fo the risk of irregularifies and non-compliance wifh laws and regularions, we designed procedures which included, but were noi limited ro: Agreeing f inancial statement disclosures to underlying supporting documentation. Reading the minutes of meetings of those charged with governance. Enquiring of management as to acTual and POTential litigaTion and claims. There are inherent limitations in our audit procedures described above The more removed that laws and regulations are f rom f inancial transactions, the less likely it is that we would become aware of non- compliance. Audifing standards also limit the audit procedures required to identif y non-compliance with laws and regulafions fo enquiry of the directors and olher management and the inspection of regulatory and legal correspondence. Maferial misstatemenfs fhat arise due fo f raud can be harder to defect rhan fhose thal arise f rom error as rhey may involve deliberate concealmenf or collusion. 37 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF L'ARCHE (CONTINUED) Because of the inherent limitations of an audir. there is a risk that we will not detecf all irregularities, including those leading ro a maferial misstafement in the f inancial statements or non-compliance with regulafion. This risk increases rhe more thaf compliance wifh a law or regulation is removed f rom rhe evenfs and fransacfions ref lecfed in the f inancial slalemenfs, as we will be less likely ro become aware of insfances of non-compliance. The risk is also grealer regarding irregularifies occurring due to f raud rather rhan error, as fraud involves infenlional concealmenf, forgery, collusion, ornission or rnisrepresenfafion. A f urrher description of our responsibilities is available on ihe FRC'S website ai.. www.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report. Useof 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, and to the charitable company's trustees. as a body. in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been underfaken so that we might state to the charifable company s members those matters we are required ro sfale fo them in an audifor's reporf and for no ofher purpose. To the fullesl exfenr permimed by law, we do nol accept or assume responsibilify io anyone olher fhan rhe charifable company and rhe charifable cornpany's members as a body, for our audif work, for this reporf, or for rhe opinions we have formed. Nell Baldwln Isenlor statutory audltor) for and on behalf of Sumer Audltco Llmlted New Charfford House Cenfurion Way Cleckheaton Wesf Yorkshire BD19 3QB Date.. 20.2.2026 38 L'ARCHE FINANCIAL STATEMENTS STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2025 Note Endowment Funds 2025 Restricted Funds 2025 Unestricied Funds 202S Total funds 2025 Tolai funds 2024 Incomeand endowments from: Donations and grants Charitable activities Investmenrs 470.179 860.314 I330.493 20.820.179 20.820.179 11.393 11.393 1.551.372 18,106,574 16,562 Total income and endowments 470.179 21,691.886 21162.065 19,674,508 Expenditure on: Raising funds Charitable activities Other expendifure 420.508 420.508 2I268.625 21.603.382 61 134.047 387.690 19.899,513 281,725 334.757 133.986 Total expendlture 468.743 2l689.194 21157.937 20,568,928 Net Incomel(expendlture) before net Ilosses)Igains on investments Net (lossesilgains on invesrmenrs l436 1692 4128 1894,4201 110.815) 5.984 14.831) 113.0551 Net lexpenditure)lincome Transfers between f unds {10.815) 1.436 8.676 1703) 1907.4751 17 8.870 (8.8701 Net movement ol funds {10.815) 10.306 0941 1703) 1907.4751 Reconclllation of funds: Total funds brought forward Net movement in funds 34.965 {10.815) 506.316 10.306 11.505.777 11047.058 0941 1703) 12,954.533 1907.4751 Total funds carrled forward 24.150 516.622 11.505.583 11046.355 12,047,058 The srarement of Financial Acriviries includes all gains and losses recognised in the year. The notes on pages 42 to 63 form part of these f inancial statements 39 L'ARCHE BALANCE SHEET AT 31ST JULY 2025 Note 2025 2024 Flxed assets Tangible assets Investments 12 13 8.567.325 98.347 8,892,006 103.178 8.665.672 8,995,184 Current assets Debtors Cash at bank and in hand 14 3.435.510 1.459.425 3.632.474 874,183 4.894.935 4,506,657 Current Llabllltles Credifors.. amounts falling due within one year 15 (1.4010421 11,232,291) Net current assets 3.491893 3,274,366 Total assets less current Ilabllltles Credifor5'. amounts falling due afrer more than one year 12.158.565 12,269,550 16 (1112101 1222.492) Total net assets 12.046.355 12,047,058 Charity funds Endowment funds Restricted f unds Unresrricted funds 17 24.150 516.622 11.505.583 34,965 506,316 11.505.777 17 17 Total Funds 12,046.355 12,047,058 The trustees acknowledge their responsibilities for complying with the requirements of rhe Act with respect to accounring records and preparaTion of financial STaremenrs. The financial statements were approved and authorised for issue by the trustees and signed on their behalf by.. Aedan MacGreevy Chair of Trustees Jonathan Carter Trustee Date 19.2.2026 The notes on pages 42 to 63 form part of these f inancial statements 40 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2025 2025 2024 Cash flows f rom operarlng actlvliles Net cash used in operating activities - note 20 626.982 (1,142,193) Cash flows f rom Investlng actlvllles Proceeds f rom the sale of tangible f ixed asser5 Purchase of rangible fixed assers Invesfmenf income receipts Finance costs paid 254.403 (282.3001 Il393 (&207) 1,500 1450.8761 16,562 110.256) Net cash used in investing activities {24.ni} 1443,0701 Cash flows f rom f Inanclng actlvltles Repayrnents of borrowing (17.029) 115,4041 Net cash used in f inancing activities (17.029> 05.404) Change In cash and cash equlvalents In the year Cash and cash equivalents ar the beginning of the year 585.242 {1.600.667) 874.183 2,474,850 Cash and cash equivalents at the end of the year- note 21 1.459.425 874.183 The nores on pages 42 to 63 form part of these f inancial STatemenTS 41 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2025 I. ACCOUNTING POLICIES Basis of preparation of financial statements The f inancial statemenis have been prepared in accordance with the Charilies SORP (FRS102) - 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 IFRS102) (effective l January 2019), the Financial Reporting standard applicable in the UK and Republic of Ireland IFRS102) and the Companies Act 2006. L'Arche meets rhe def inition of a public benef if enfity under FRS102. Assefs and liabilifies are initially recognised al historical cosl or fransacfion value unless ofherwise sfafed in the relevant accounling policy. Going concern The trusfees have reviewed rhe f inancial performance and the general reserves posifion in 2025. L'Arche continues fo operate in a challenging f inancial environment, compefing for f unding f rom Local Authorilies who are under long-rerm financial pressure. Inf lafionary increases, the rise in Ihe cosf of Nl ancl increases ro Ihe Nafional Living Wage increase our cosf-base while Ihere is no coherenl long-lerm clear sfrafegy for f unding care and suppori ro aduirs wilh learning disabilifies. Apart f rom Local Authority f unding, L'Arche also f unds some of its operations through f undraising income. The fundraising environment remains challenging after the COVID pandemic and cost of living pressures L'Arche continues to benef it f rom individual giving, regular donor and trust fundraising, including multi- year f unding for specif ic projects. To address fhese challenges, we insfitufed the 'Stronger Finances Plan, which included ensuring robusf reforecasfing of rhe expected ourrurn was implernenfed to ensure quick corrective acfion was raken. In 2024125, we released one of our non-core fixed assels as parl of our sfrafegy ro sfrengrhen our cash reserves. Additionally. we continue to review our contracts and our costs to ensure that our income is maximised and that our resources are stewarded wisely. taking action to ensure that underfunded services are addressed. We have invesfed in key digital inf rasfructure and systems in recent years and are seeking to invesf in recruifing and retaining assistants, leaders and specialists we need to continue to deliver our f ulure strategic plans. Truslees have prepared a cash flow forecasrro March 2029, and are confidenr rhai rhe chariry has adequafe reserves fo confinue ifs operafions for this period. Thus, rheu conlinue lo adopt rhe going concern basis of accounfing in preparing rhe annual f inancial sfafements. 42 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2025 I. ACCOUNTING POLICIES (CONTINUED) Income All income is recognised once ihe Charitable Company has eniifiemeni io rhe income, il is probable ihai rhe income will be received and The amount of income receivable can be measured reliably. The recognition of income from legacies is dependent on esfablishing entifiement, the probability of receipt and the ability to estimafe with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when rhe Charitable Company has sufficient evidence fhaf a gifl has been left ro fhem (rhrough knowledge of the exislence of a valid will and rhe deafh of rhe benefacfor) and rhe execufor is safisfied fhal the properfy in queslion will nol be required fo safisfy claims in rhe esfafe. Receipl of a legacy musf be recognised when il is probable Ihaf if will be received and Ihe fair value of rhe amounf receivable, which will generally be ihe expecied cash amount io be distribuied 10 the Charitable Company, can be reliably measured. Incoming resources f rom charitable activities represents the aggregate of residents, income support, local and central government grants and receipts and other non-government receipts provided for the maintenance of rhe Communities and their residents. Income fax recoverable in relafion to invesfmenl income is recognised at rhe fime the investmenf income is receivable. Donations for L'Arche International and Overseas Communities - where donations have been raised for the specif ic purpose of distribution to L'Arche Overseas Communities, to minimise administration costs there can be a delay in the transfer of these funds to the projects for which they have been given The size of the sums involved warrant separate disclosure from other funds donated to L'Arche UK. 43 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2025 I. ACCOUNTING POLICIES (CONTINUED) Expenditure ExpenditLJre is recognised once there is a legal or consfrucfive obligafion to Iransfer economic benefir ro a fhird parry, if is probable fhaf a fransfer of economic benef ifs will be required in semlement and Ihe amount of rhe obligafion can be measured reliably Expendifure is classif led by activify. The cosls of each acfivify are made up of rhe folal of direcl cosls and shared cosfs, including supporf cosfs involved in underfaking each acfivity. Direcf cosfs arrribulable fo a single acrivify are allocafed direcllu fo Ihar aciivify. Shared cosis which contribute to more than one acrivify and support cosis which are not attriburableto a single activify are apportioned between Those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use Expenditure on raising funds includes all expendifure incurred by rhe Charitable Company ro raise f unds for its charitable purposes and includes costs of all fundraising activifies events and non-charifable frading. Expendifure on charitable activifies is incurred on direcfiy underfaking rhe activifies which furfher rhe Charilable Company's objecfives, as well as any associafed supporl costs. All expenditure is inclusive of irrecoverable VAT. Interest receivable Inleresf on f unds held on deposit is included when receivable and the amount can be measured reliably by rhe Charitable Company, rhis is normally upon nofif icafion of the inlerest paid or payable by rhe Instifution with whom the f unds are detx)sited. Foreign currencles Monefary assefs and liabilities denominated in foreign currencies are franslafed info sferling af rafes of exchange ruling ar rhe reporfing dare. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange gains and losses are recognised in the Stafement of f inancial acfivifies. Tangible fixed assets and depreciation Tangible f ixed assels cosfing £500 or more are capifalised and recognised when f ufure economic benefifs are probat)le and Ihe cosl or value of rhe assel can be measured reliably. Tangible f ixed assets are initially recognised at cost. After recognition, under the cost model, tangible f ixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses All costs incurred to bring a tangible f ixed asset into its intended working condition should be included in the measurement of cost. 44 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2025 I. ACCOUNTING POLICIES (CONTINUED) Tangiblefixed assets and depreciation (continued) Deprecialion is charged so as to allocafe rhe cosf of fangible f Ixed assefs less fheir residual value over Iheir esfimafed useful lives, using rhe straighf-line rnethod. The eslimafed usef ul lives are as follows. Freehold buildings - 40 years Long-term leasehold propeny - period of lease Shorr-term leasehold property - period of lease Moior vehicles - 4 years Tools and equipmenl- 4 years Freehold land is excluded from depreciation on the basis of value at date of acquisition. Investments All inveslmenfs are sfafed at marker value. The market value of listed invesfments is derived f rom prices quoted on rhe PLUS marker (formerly OFEX) Unrealised changes made fo rhe balance sheer markel values are reflecfed in rhe sfaternenl of Financial Acfivifies. Invesimenrs held as fixed assers are shown ar cosr less provision for impairmenr. Debtors Trade and other debtors are recognised at rhe settlement amount after any trade discount offered. Prepaymenfs are valued ar rhe amounr prepaid net of any rrade discounts due. 1.10 Cash at bank and in hand Cash af bank and in hand includes cash and shorl-ferm highly liquid invesfmenfs with a shorf mafuriry of fhree monihs or less from rhe dare of acquisifion or opening of the deposir or similar account. 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 transf er of economic benef it will be required in settlement, and the amount of the settlement can be estimated reliably Liabilifies are recognised af ihe amounr rhar rhe Charitable Company anficipales if will pay ro settle the det)r or the amounf if has received as advanced paymenfs for rhe goods or services if must provide. Provisions are measured ar rhe besr esrimare of rhe amounrs required ro serrie ihe obligarion. Where the effecf of ihe time value of rlloney is material, Ihe provision is based on the present value of those amounts, discounted at the pre-tax discount rate that ref lects the risks specif ic to the liability. The unwinding of the discount is recognised in the Statement of f inancial activities as a f inance cost. 45 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2025 I. ACCOUNTING POLICIES (CONTINUED) 1.12 Financial instruments The Charitable Company only has f inancial assets and financial liabilifies of a kind fhaf qualify as basic f inancial insfrumenls. Basic f inancial insfrumenfs are inifially recognised ar transacfion value and subsequently measured ar their semlemenf value wifh rhe excepfion of bank loans which are subsequenllu measured af amorlised cosf using rhe effeclive inferesf mefhod. 1.13 Operating leases Rentals paid under operating leases are charged to the Statement of f inancial activities on a straighl-line basis over the lease term. 1.14 Pensions The Charitable Company auto enrols qualifying employees as members of a group personal pension scheme.administered by Royal London. The Company's confributions are included in Resources Expended in the sfatement of Financial Acfivifies in the year in which the contributions are made. Fund accountlng The General Funcl consists of amounfs received which have yer io be corllmirred or designafed io a specific use by the Companu. The Developmeni Fund comprises granis and donations received for or appropriated TO development projects. IT contains amounts either resTricted by the donor or designated by the Company for specif ic purposes. The Fixet Asset Fund, Unrestricted and Endowed, represents the net book value of property and other tangible f ixed assets less long-term borrowings on property INCOME FROM DONATIONS AND LEGACIES Restricted funds 2025 Unrestricied funds 2025 Total funds 2025 Donatlons and legacles Donations for L'Arche UK Donarions for L'Arche Inrernational Legacies received 421,698 48.481 529,799 951.497 48.481 330.515 330,515 470,179 860.314 1.330.493 46 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2025 INCOME FROM DONATION£ AND llEC.AG.IFS (CONTINUED) Restrlcted funds 2024 Unrestrlcted funds 2024 Total f unds 2024 Donations and legacie5 Donations for L'Arche UK Donations for L'Arche International Legacies received 289.073 126,873 782.926 1.071.999 126,878 352,500 352,500 415.946 1.135.426 1.551.372 INCOME FROM CHARITABLE ACTIVITIES Unresirlcted funds 2025 Total f unds 202S Income f rom Care and Support Provision Income f rom Housing Services other funding Sundry receiprs Sale of products prof ir on disposal of fixed assets 17,799,780 2,696,263 95,274 31.994 17,837 179,031 17.799.780 2.696.263 95.274 31.994 17.837 179.031 20.820.179 20.820.179 47 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2025 ING.OME FROM C.HAFIITABLE AG.TIVITIE£ (C.QNTINLJED) Unrestrlcted funds 2024 Total funds 2024 Income f rom Care and Support Provision Income f rom Housing Services other f unding Sundru receipts Sale of products 15,685,847 2,287,439 88,537 29,134 15.617 15,685,847 2,287,439 88,537 29,134 15,617 18,106,574 18.106,574 INVESTMENT INCOME Unrestricted funds 2025 Total funds 2025 Income f rorn investrnents Bank interesr 11,387 11.387 11,393 11.393 Unreslricted funds 2024 Total funds 2024 Income from investments Bank interest 16.557 16.557 16.562 16.562 48 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2025 EXPENDITURE ON RAISING FUNDS Fundralslng expenses Unresirlcted funds 2025 Total f unds 202S Fundraising Comms 274,589 145,919 274.589 145.919 420,508 420.$08 Fundralslng expenses Icontlnued) Unrestrlcted funds 2024 Total funds 2024 Fundraising Comms 241,171 145.919 241,771 145.919 387,690 387.690 49 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2025 ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES Summary by fund type Restrlcted funds 2025 Unrestrlcted funds 2025 Total f unds 2025 Employment and training Household costs and community activities Occupancy costs Repbirs. mbinrenance and renewals Depreciation offi.ce cost5 Moror and rravel Legal and professional I governance costs Loan interesr Direct support and development 215.001 15.714 16,512,744 591.556 1,867,448 405,629 531.607 317,825 202.591 357,037 8.207 473,981 16.727.745 607.270 1.867.448 479,784 S31.607 319.426 201591 357.037 8.207 562.267 14,155 1,601 88.286 334,757 21,268,625 21.603.382 50 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2025 ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES (CONTINUED) Summary by fund type (continued) Restricted funds 2024 unresiricted funds 2024 Total funds 2024 Employment and fraining Household costs and community activities Occupancy costs Repairs. mainrenance and renewals Depreciation Workshop costs Office cosrs Motor and travel Legal and professional I governance costs Loan interest Direct support and development Loss on disposal of f ixed assers 328,440 163,662 15.194,858 453,876 1,441,769 442.979 A91.520 52,010 199.295 190,712 335,151 10.256 457,414 303 15,523,298 617,538 1,441,769 442.979 491.520 56,694 284.364 195,712 335,151 10.256 499,929 303 4,684 85.069 5,000 42,515 629.370 19.270.143 19.899.513 C)THER FXPFNDITURE Restrlcted funds 2025 Unrestrlcted funds 2025 Total funds 2025 Donations to L'Arche International other donaTions 133,986 133.986 61 61 133.986 61 134.047 51 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2025 OTHER EXPENDITURE (CONTINUEt)) Restricted funds 2024 Unrestricted funds 2024 Total funds 2024 Donations to L'Arche International orher donarions 281,300 281,300 425 425 281.300 425 281.725 L'Arche Benevolent Trust is an independent registered charity with the objective of assisting employees and exemployees of L'Arche who may require financial supporr as a resulr of personal hardship. ANALYSIS OF EXPENDITURE BY ACTIVITIES Actlvlties undertaken directly 2025 Support cosls 2025 Total lunds 1025 Employment and training Household costs and communitu activities Occupancy costs Repairs. mainrenance and renewals Depreciation offi.ce costs Moror and travel Legal and professional / governance costs Loan inreresr Direct supporf and development 16.727.745 607.270 1,867,448 419.784 531.607 16.727.74S 607,270 1.867.448 419.784 531.607 319,426 202.S91 357.037 8.207 562.267 319,426 202.591 357,037 8,207 562.267 20,153,854 1,449,528 21.603.382 52 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2025 ANALY£I£ OF FXPFNDITIIQE BY AC.TIVITIE£ (C.QNTINLJED) Actlvltles undertaken directly 2024 Support cosls 2024 Total funds 2024 Employment and training Household cosrs and community activities Occupancy costs Repairs. mainrenance and renewals Depreciation Workshop costs Office costs Motor and travel Legal and professional I governance costs Loan interest Direct supporr and developmenr Loss on disposal of fixed assets 15,447.885 617.538 1,441,769 442.979 491,520 56.694 75.413 15,523.298 617.538 1,441,769 442.979 491,520 56.694 284,364 195,712 335.151 10,256 499.929 303 284,364 195.712 335,151 10,256 499,929 303 18,498.385 1,401,128 19,899,513 AUDITOR'S REMUNERATION 2025 202 Fees payable to the Charitable Company s auditor for the audit of rhe Charitable Company's annual accounrs 25.000 20.095 Fees payable to the Charitable Company s auditor in respect of.. All non-audif services not included above 3.995 3.675 53 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2025 10 STAFF COSTS Z015 2024 wages and salaries Social security costs Contribution to defined confribufion pension schemes 14.855.679 l475.152 443.525 13,744,941 1.166.781 425,158 16.T14.356 15,336,880 Ar the year end. premiums were outstanding ro the pension scheme provider of £71.65112024. £63,380). The key management personnel of the Charity comprises the rrustees and the National Leadership Team - the National Leader. Deputu National Leader. Regional Leaders, Head of Human Resources, Head of Finance, Fundraising Director and Mission Formation Director. The total remuneration of the National Leadership Team was £583.960 (2024.. £590.963). The average number of persons employed by the Charitable Company during rhe year was as follows.. zo No. 2024 No. Communities Administration and Finance Fundraising and Publicity 461 27 481 29 io 498 518 The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 wa5.. 2025 2024 No. In The band £60.001- £70.000 In the band £70.001- £80,000 In the band £80,001- £90,000 11. TRLJSTEE£' REMLJNERATION AND EXPENSES During the year. no trustees received any remuneration or other benef its (2024 - £NIL) During the year ended 31 July 2025, expenses totalling £1,128 were reimbursed or paid directly to f ive trustees 12024 £633 to four trusfeesl. 54 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2025 12. TANGIBLE FIXED ASSETS Freehold landand bulldlngs Long-term leasehold bulldlngs Short-term leasehold bulldlngs Motor vehlcles Tools and equlpment Total Cost or valuatlon At l August 2024 Additions Disposals 11.253.516 750.T18 903.224 206.615 1.807.913 14.921046 59.715 039.802) 49.627 90.394 (70.8541 82.564 282.300 {210.656) At 31 July 2025 11.173.429 750.778 951851 226.155 1.890.a177 14.993.690 Depreclatlon Ar i Augusr 2024 3.624.099 429.881 402.006 145.1x15 1.429.049 6.030.040 Charge for rhe year On disposals 245.490 16.414 71.973 35.328 162.403 531.608 (7l9731 (63.3101 {135.283) At 31 July 2025 3.797.616 446.295 471979 117.023 1.591.452 6.426.365 Net book value At 31 July 2025 7.375.813 304.483 478.872 109.132 299.025 8.567.325 Ar 31 July 2024 7,629,417 320,897 501,218 61,610 378,864 8,892,006 Leasehold buildings bre sub-divided into those held under short-rerm leases150 years and underl and those held under long-term leases (over 50 years). 55 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2025 IR FIXED A££ET INVE%TMENT% Cost or valuatlon Listed investments Quoted investmen15 Total At l August 2024 Revaluarions 34.965 (10.815) 68.213 5.984 103.178 (4.831) At 31 July 2025 24.150 74.197 98,347 Net book value Listed investments Quoted investmen15 Total Af 31 July 2025 24.150 74.197 98.347 At 31 July 2024 34.965 68.213 103.178 All investments are in rhe United Kingdom. The listed investmenrs were given TO L'Arche as an endowment and comprise1.050 shares in Adnams Brewery. an Aquis Stock Exchange company, with a market value of £23 00 per share at 31st July 202512024.. £33.30). 14. DEBTORS Due wilhin one year 2025 2024 Fees due other debfors prepayments and accrued income 1.847.003 349.541 1.238.966 2,789.122 35.592 807,760 3.435.510 3.632.474 56 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2025 15 CRFDITORS AMOUNTS FALLING DUE WITHIN ONE YEAR Z015 2024 Triodos loan Trade creditors other faxation and social security Other creditors Accruals and deferred income 16.483 206.890 347.954 167.667 663.048 16,483 383.505 378,296 79,313 374.634 1.402.042 1,232,291 iOZ5 2024 Resources deferred during the year 48.9n Deferred incorne comprises monies received in advance for annual rent, for which the income is spread over the period of the rental agreement. 16. CREDITORS AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR Z015 2024 Triodos loan orher creditors 112.210 129,239 93.253 112.210 222.492 The Triodos loan at Ipswich is secured on 3 Warringfon Road, Ipswich, with an interest rate f ixed at 1.25Q/o over base and is for a period of 25 years. The Triodos loan Is partially composed of amounts due over 5 years. These amount to £46,27812024: £63.307) The charity also has use of an overdrafr faciliry if required. The overdraft facility is secured by f ixed and f loating charges over all of the properties and assets held by the Charity. 57 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2025 17. STATEMENT OF FUNDS statement offunds- current year Balance ar i August 2024 Transfers Inlout Galnsl (Losses) Balance at July 2025 Income Expendllure Unrestrlcted lunds General Fund 1.831.113 21.691.886 (21.157.587) 1219.101) 5.984 1151295 Development Fund 928.380 928.380 Fixed Asset Fund 8.746.284 (531.607) 210.231 8.424.908 11.505.777 21.691.886 (21.689.194) 18.870) 5.984 11.505.583 Endowmentfunds Endowment Fund 34,965 (10.815) 24.150 Restrlcted funds Capital S Ref urbishment Appeals 11.493 14.155 (14.155) 11.493 Investing in Leadership. Young People and Inf rastructure for Growth 180.394 401.503 (313.535) 8.870 2TI.232 Investment in Programmes and Projects of L'Arche International 179.884 43.481 {IOa890) 119.475 Local Community Projects 93.378 11.040 (753) 103.665 other 4l167 (36.410) 4.757 506.316 470,179 (468.743) 8.870 516.622 Total offunds 12.047.058 22.161065 (22.157.937) (4.831) 12.046.355 58 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2025 17. STATEMENT OF FUNDS (CONTINUED) Purpose of restricted funds Capifal and Refurbishment Appeals Manchester.. The Rose. supported living house f unding to furnish a new house in L'Arche Manchester,. The Rose. The funds are for purchasing equipment and f urnishings to make thi5 new home comfortable for residenf5. Brecon: Kitchen Refurbishment - f unding fo transform the communal areas of Glasf ryn House in L'Arche Brecon. The funds were used to transform the kitchen and living areas to make them more comfortable and safe for residents. and were spent on materials and paying archirecture and building contractor fees. Investing in Leadership, Young People £ Infrastructure for Growth Big Conversation.. Voice an(1 Power - funding to support a nation-wide programme aiming to empower people with learning disabilities in L'Arche. Funds are used to pay the salaries of two people who are co-delivering the project, as well as other staff costs (such as trainers and project leads). Funds are also spent on IT equipment, ralking maTS. rravel. venue hire. subscriprions and licences. Big Conversation.. Spirituality - f unding fo support a nation-wide programme aiming to support people in L'Arche to explore and deepen their spirituality. This programme funds projects such as the Soulful Internship and rerrears. The Soulful Inrernship is a year-long placemenr for people looking ro deepen rheir spirirualiry while living and working in L'Arche. Funds are spenf on staff costs. housing. recruifment. maferials. travel. ReTreats are a period of respire and reflection offered to people working in L'Arche which are hosted off sire al religious retreat hoLJses. Funds are spent on food, accommodation, travel, 5faff c05fs. Communily Connector - f unding fo pay the salary of a Communitu Connector- a parr-time role that is designed to increase engagement between L'Arche Communities and the wider community. Hopelest Festival - ticket sales for Hopefest and donations for L'Arche's summer camping festival in July 2025. Funds were spent on food, sire rental, accommodation, signage efc. Invesrment in Charlly Infrastructure - funding to support a nation-wide programme aiming to improve the IT and finance inf rasfructure of L'Arche. Funds are spent on staff cost5, and hardware for and Subscriptions to services such as Sona and Nourish. Volunteers Coordination f unding to pay the salary of a Volunteer Coordinator - a part-time role (either l or 2 days per weekl that is responsible for recruiting, training and managing volunteers. This f unding supported this role in 8 L'Arche Communities in 2024125. Investment in Programmes and Projects of L'Arche International These f unds supporf L'Arche Communities overseas. It is directed to L'Arche International, who then administers the f unding to the relevant Community. Local Communify Projects Various projects in the Communities Some funding is earmarked for specific L'Arche Communities Funds are directed by L'Arche UK to the relevant Community, who spends it on local community projects. 59 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2025 17. STATEMENT OF FUNDS (CONTINUED) statement offund5- prior year Balance at i August 2023 Transfers inlout Gainsl (Losse5) Balance at July 2024 Income Expenditure Unrestricted funds General Fund 2,190,042 19,258,562 (19,166,738) 1450,7531 1,831,113 Developmenr Fund 928,380 928,380 Fixed Asset Fund 8,773,326 1491,5201 450,753 13,725 8,746,284 11,891,748 19,258,562 119,658,258) 13,725 11,505,777 Endowmentfunds Endowment Fund 61,745 (26,780) 34,965 Restricted funds New Communities 339 339 166.815) Investing in Leadership. Young People and Inf ra5fructure for Grovrth 217,121 265,231 (301,959) 180,393 Invesfrnent in Programmes and Projects of L'Arche International 334.311 126,873 {281,3001 179,884 Local Community Projects 342.018 23.450 1260.596) 104.872 other 41,114 53 41,167 1,001,040 415,946 1910,670) 506,316 Tot•1 oftynd$ 12,954.533 19.674,508 120,568.9281 (13,055) 12,047,058 60 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2025 18. SLJMMARY OF FUNDS Summary offunds- current year Balance at I August 2024 Transfers Inlout Galnsl (Losses) Balance at 31 July 2025 Income Expendlture General Fund 11.505.777 21.691.886 (21.689.194) (8.8701 5.984 11.505.583 EndowmenT funds 34.%5 00.815) 24.150 ResTricred funds 506.316 470.179 1468.743) 8.870 516.622 12.047.058 22.162.06S 121157.937) (4.831) 12,046.355 Summary of funds- prior year Balance at I August 2023 Transfers inlout Galnsl (Losses) Balance ar 31 July 2024 Income Expenditure General f unds 11.891.748 19.258.562 (19.658.258) 13.725 11.505.777 Endowment funds 61,745 (26,780) 34,965 Restricted funds 1.001.040 415,946 (910.670) 506.316 12.954,533 19,674,508 (20.568.928) 03,055) 12.047,058 19. ANALYSIS OF NET ASSETS BETWEEN FUNDS Endowment f unds 2025 Restricted funds 2025 Unrestricted funds 2025 Total funds 2025 Analysis ol net asset5 between funds- current year Tangible f ixed assets Fixed asset investments 8,567,325 8.567.325 24,150 74.197 98.347 Currenr assets 516.622 4.378.313 4.894.935 Creditors due wifhin one year Creditors due in more than one year 11,402,042) 11.402.042) 1112.210) 011210) Total 24.150 516.622 11.505.583 12.046.355 61 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2025 19. ANALYSIS OF NET ASSETS BETWEEN FUNDS (CONTINUED) Endowment funds 2024 Restricted fund5 2024 Unrestricted funds 2024 Total funds 2024 Analysis of net assers berween funds- prlor year Tangible f Ixed assets Fixed asset investments 8,892,006 68.213 8,892,006 103.178 34.965 Current assets 506,316 4,000,341 4,506,657 Creditors due wirhin one year Creditors due in more than one year 11.232.291) 1222,4921 (1.232.291) 1222,492) Total 34,965 506.316 11,505,777 12,047,058 20. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES 2025 2024 Ner expendirure for The year (as per srarement of Financial AcTivifies) (703) 1907,4751 Adjustments for: Depreciation charges Unrealised loss on investments 5ai607 491.520 4.831 13,055 Invesrmenr income receipTS Lossllprof it) on the sale of fixed assets Decreasellincreasel in debrors Increasel(decreasel in creditors Finance costs paid (11.393) 079.031) 196.964 116.5621 302 1581.285) {152,004) 10.256 76.500 8.207 Net cash provlded byl(used In) operatlny acilvltles 626.982 (1,142,193) 62 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2025 21. ANALYSIS OF CASH AND CASH EQUIVALENTS 2015 2024 Cash in hand 1.459.425 874,183 Total cash and cash equlvalenls 1.459.425 874,183 22. ANALYSIS OF CHANGES IN NET DEBT At l August 2024 At 31 July 2025 Cash flows Cash at bank and in hand Debt due within l year Debt due afrer l year 874.183 (16.483) 029.239) 585.242 1.459.425 {16.483) (112.210) 17.029 728.461 602.271 1.330.732 23. OPERATING LEASE COMMITMENTS At 31 July 2025 the Charirable Company had commitments to make future minimum lease payments under noncancellable operating leases as follows.. 2025 2024 Nor larer rhan l year Later than l year and not later than 5 years Later than 5 years 81.957 313.808 839.692 66.415 300,000 1,033,610 1.235.457 1.400.025 The majority of the company s leases of land and buildings are subject to rent review periods ranging between 3 and 5 years. All leases currenfiy held by L'Arche are operating leases. 24. RELATED PARTY TRANSACTIONS There were no relafed parry transactions in either the current or previous financial period. 63 Be part of our gTOKY You can join us in the life-changing L'Arche journey in many ways: Donate Volunteer Fundraise Campaign Find out more at: www.larche.org.uk www.facebook.comlUK.LARCHE Memberships and Associations: ccps LDE NCF T￿F MATIONALC44ÉSOPU Leèmin8 Ohs3blllty Ewand AUDITOR Sumer Auditco Limited, New Charfford House, Cenfurion Wau,Cleckheaton, WesT Yorkshire, BD19 3QB BANKERS National Wesrminster Bank plc 63 North street, Keighleu, West Yorkshire BD213SB Royal Bank of Scotland plc PO BOX 5663. 1ST Floor. Aff ric House. Beechwood park. Inverness IV2 3YR L'Arche A company limited by guarantee Registered in England and Wales, No. 1055041 Registered Charity Nos. 264166 and SC038493 Regislered office.. L'Arche National office, Rornero House, 55 Westminsfer Bridge Road, London SEI IJB Tel- 0161438 2832 Emall: info@larche.org.uk LARCHE Webslte: www.larche.org.uk I￿ the UK