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2024-09-30-accounts

Annual Report and Financial Statements for the year ended 30 September 2024

Registered Charity Number 266220

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Contents

Reference and administrative details…………………………………………………………. ... 3 Annual Report.....................................................................................................5 Independent auditors’ report to the Trustee of the Thalidomide Trust ......... 17 Statement of financial activities for the year ended 30 September 2024 ....... 20 Balance sheet as at 30 September 2024......................................................... 21 Cashflow statement for the year ended 30 September 2024………………………..22 Notes to the financial statements for the year ended 30 September 2024 .... 23

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Reference and administrative details

Registered Name The Thalidomide Trust Charity number 266220 Registered address 1 Eaton Court Road Eaton Socon St Neots Cambridgeshire PE19 8ER Corporate Trustee The Thalidomide Trust Company (incorporated on 19 January 2018 with Company Number 11160424, registered address as above)

Directors of the Corporate

Company

The Directors of The Thalidomide Trust Company during the year and up to the date of approval were:

Mark Spofforth OBE BSc FCA CTA FRSA (Chair of Trustees) – retired 31 December 2024 David Body MA Solicitor of Senior Courts of England & Wales (Chair of Trustees from 1 January 2025) Mark Benstead MA MBA Professor Adrian Charles Newland CBE Professor William Andrew Owens MD FRCS(CTh) Professor Rosemary Varley Ruthe Isden Shan Abdullah Dame Caroline Swift Matthew Thorogood – appointed 1 January 2025 Professor Jill Manthorpe CBE – appointed 1 January 2025 Senior Management Team Deborah Jack - Joint Chief Executive Katy Sagoe - Joint Chief Executive Suzanne Lluch - Finance Director Ian Silver - Director of Health & Wellbeing Medical Advisers Dr Susan Brennan MBChB MRCGP Dr Helen Smith MBChB MRCGP Dr Tim Fenn MB BS

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Investment Managers BlackRock London EC2N 2DL Schroders Investment Management Limited 1 London Wall Place London Wall London EC2Y 5AU Legal & General Investment Management One Coleman Street London EC2R 5AA Investment Consultants Hymans Robertson 45 Church Street Birmingham B3 2RT Solicitors Withers HCR Legal LLP 20 Old Bailey Shakespeare House London 42 Newmarket Road EC4M 7AN Cambridge CB5 8EP Actuaries Hymans Robertson 20 Waterloo Street Glasgow G2 6DB Bankers Lloyds Bank 39 Threadneedle Street London EC2R 8AU Independent auditors Saffery LLP Westpoint Peterborough Business Park Lynchwood Peterborough PE2 6FZ

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Annual Report

Objectives and activities

The Thalidomide Trust (“the Trust”) was established to provide ‘relief and assistance’ to individuals with disabilities caused by their mothers taking, during pregnancy, a preparation distributed by The Distillers Company (Biochemicals) Limited in the United Kingdom containing the drug known as thalidomide in the late 1950s and early 1960s.

Our Aims

All but two of our beneficiaries are now in their 60s and most are feeling the impact of using their bodies for many years in ways for which they were never designed. In addition, as they get older, they are experiencing a wide range of age-related health problems that are exacerbated by their original thalidomide damage. This seriously impacts on their quality of life and their ability to remain fully independent. A small number have experienced a cognitive decline alongside their deteriorating physical health. Many have very complex care needs.

The Trust meets the increasingly complex needs of the beneficiary community through the provision of financial support – in the form of annual grant payments – and a range of information, advice and advocacy services. To underpin this, we gather evidence on the needs and experience of our beneficiaries and undertake more detailed research on topics that are of greatest relevance to them in order to fill evidence gaps or deepen our understanding.

The Trust has a Vision and five Strategic Goals which were jointly developed – and reviewed and updated in 2022 – by the Trustees, staff, and beneficiary representatives:

Our Vision is that …. each and every beneficiary of the Trust has access to the resources and support they need to live their best life for the longest time. Our five strategic goals are…….

GOAL 1: To ensure the Trust’s income is secure, financial risk is effectively managed
and adequate funding is available to meet the increasing needs of
beneficiaries as they age.
GOAL 2: To apply the Trust’s resources strategically, effectively and equitably (in
order to achieve our vision).
GOAL 3: To ensure that all beneficiaries have access to the best possible
information, advice, advocacy, services and support – both within and
outside the Trust – as they age and their physical and mental health needs
increase.
GOAL 4: To ensure effective (two-way) sharing of knowledge and learning for the
benefit of the beneficiary community and for wider public benefit.
GOAL 5: To ensure that the individual beneficiary’s needs remain paramount, even
when third parties (families, carers, representatives) have a role in acting
on their behalf.

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Public Benefit

Although the Trust is very much focussed on the needs of a small, discrete community of beneficiaries, Trustees have also had regard to the Charity Commission’s guidance on public benefit and so we also take steps to deliver a broader societal value by sharing our research and learning with other thalidomide organisations around the world and, where relevant, with the broader disability community.

The Trust is increasingly aware of the benefit of sharing our experience and lessons learned from fifty years of supporting this unique community with other groups of individuals living with disabilities and the organisations that support them now and in the future. To this end, we are working on a ‘Legacy Project’ to document the key lessons we have learned that we feel will be most valuable to others facing similar challenges.

Structure, Governance and Management

Structure

The Thalidomide Trust was set up in 1973 - originally as the Thalidomide Children’s Trust - and is a charitable discretionary Trust registered with the Charity Commission for England and Wales.

With the consent of the Charity Commission, on 29 January 2018 a new company limited by guarantee, The Thalidomide Trust Company (incorporated on 19 January 2018, Company Number 11160424), was appointed as sole Corporate Trustee of the Trust, replacing the individual Trustees. The Corporate Trustee will be referred to in this document as the Trustee.

The Trustees at the date of incorporation became the Directors of the Company. However, although legally Directors, in recognition of the fact that they function as Trustees and operate within the legal frameworks and guidance of the Charity Commission, they continue to be referred to as Trustees. To reflect this, they are referred to as Trustees (as opposed to the Trustee above) throughout this Annual Report.

During 2019/20, we set up a new company limited by guarantee as a subsidiary of the Thalidomide Trust, with the consent of the Charity Commission. The valiDATE Trust (registered in England and Wales, with company number 12144047) was established specifically to oversee the maintenance and development of an online diagnostic algorithm to be used by qualified clinicians worldwide to screen individuals using detailed medical data in order to assess the likelihood of Thalidomide Embryopathy (TE) and operated on a not-for-profit basis. However, it became increasingly clear that the level of ongoing use did not justify the additional costs associated with maintaining a separate organisation and it was not financially viable to maintain it in the longer term.

The Directors of the valiDATE Trust and the Thalidomide Trust therefore made the decision to close and strike-off the company in-year. However, the diagnostic algorithm was transferred into the Thalidomide Trust and will continue to be maintained, to be used by the Trust to screen potential new beneficiaries and to be made available to clinicians in other countries, under the auspices of the Thalidomide Trust.

Trustees (formally Directors of the Trustee Company)

The Trust is governed by a small, highly-skilled Board who bring a wealth of experience and expertise to the charity including medical, legal, research, governance, health and social care policy, financial management, actuarial and investment.

Trustees are appointed through a structured recruitment process which focusses on the skills required to meet the current and future needs of beneficiaries.

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The recruitment process is overseen by the Trust’s Chair and there is direct beneficiary involvement in all Trustee appointments.

The Trust has a well-defined and comprehensive programme of induction for new Trustees and all new Trustees are offered a mentor from within the existing Trustee Board.

The Trustees are legally responsible for the overall management and control of the Trust and meet as a full Board at least three times a year. One of these three meetings is an Awayday which enables the Trustees and the Trust’s Senior Management Team to spend dedicated time focussing on long term strategic issues.

The Trust has two key Standing Committees - the Health & Wellbeing Committee and the Finance Committee - which met two and four times respectively during this year. Both Committees are attended by Beneficiary Representatives, who are selected through an open recruitment process.

There are two additional Committees which met on an ad hoc basis during 2023/24:

Beneficiary Engagement

The Trust employs a number of different mechanisms to engage with its beneficiaries and ensure the charity’s Trustees hear directly from beneficiaries and have a good understanding of their lived experiences and evolving needs. These include:

• Periodic Beneficiary Surveys and Consultations.

In the twelve-month period, there were two meetings of the Beneficiary Insights Panel. The topics for discussion were selected by Panel Members and the first focussed on ‘Care’ and the second on ‘End of Life’.

There were also two Trustee Webinars providing an opportunity for beneficiaries to interact directly with Trustees, and two Beneficiary Focus Groups – one on the implications of the move to electric vehicles and the second on the additional challenges faced by beneficiaries with a sight impairment.

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We also established a Task & Finish Group this year to explore the best ways to ensure that we understand the needs of overseas beneficiaries and can provide appropriate support to them, in the absence of the structured HNA (Holistic Needs Assessment) programme that has been established for beneficiaries living in the UK.

Our new approach to beneficiary engagement has encouraged an increased number of beneficiaries to engage with the Trust in different ways. In addition to the formal engagement mechanisms outlined above, we have set up two ongoing Working Groups with beneficiary members to ensure that we are keeping on top of developments in areas that are important to beneficiaries and providing the right sort of support (including peer support). The first is focussing on vehicles and vehicle adaptations and the second on SMART and Assistive Technology.

Trustees have found the feedback from beneficiaries really valuable and the feedback from beneficiaries indicates that they find the engagement a positive experience. We have also begun the process of planning our next periodic Beneficiary Feedback Survey which is scheduled to be implemented in January 2025.

Staff Team

During 2023/24, the day to day running of the Trust was delegated to the Executive Director, Deborah Jack, supported by a small, dedicated and skilled staff team.

From 1 October 2024, the Trustees agreed a new job-share arrangement with Deborah Jack and Katy Sagoe taking on the role of Joint Chief Executives.

The majority of the staff team are focussed on directly supporting beneficiaries in relation to their health and wellbeing in order to maximise their independence and quality of life.

Remuneration Policy

The Trustees are responsible for the Trust’s remuneration policy as well as agreeing annual pay increases for the staff team. Trustees take account of market conditions and the pay practice of other comparable charities and employers in the geographic area.

Volunteers

A number of beneficiaries generously volunteer their time and expertise to support the Trust and, through it, the broader beneficiary community.

In the last 12 months over 50 beneficiaries volunteered their time in a wide range of roles including: providing practical and/or emotional peer support; hosting virtual beneficiary meetings/events; participating in working groups and as Beneficiary Representatives on Trust Committees; acting as Beneficiary Advisers to our Pain Management Research Project and attending meetings with the four UK Health (and Social Care) Departments.

Number and Profile of Beneficiaries

The Trust has responsibility for assessing new applications to become beneficiaries of the Trust and has established a robust procedure for assessing new applications, drawing on international evidence and utilising the diagnostic algorithm, valiDATE, which was one of the key outputs of the WHO conference on Thalidomide Embryopathy held in early 2014.

During the year, the Trust received 41 completed applications from individuals who thought they may be entitled to become beneficiaries, however, no applicants met the necessary criteria for acceptance in the twelve-month reporting period. It is with regret that the Trustees report the deaths of eight beneficiaries during the year.

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At 30 September 2024 there were 426 beneficiaries (2023: 434). The charts below provide a breakdown of beneficiaries by gender, age and country of residence as at 30 September 2024.

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Risk Management

A key role of Trustees is to identify and manage risk and they discharge this duty by means of a Risk Register. The full Risk Register is reviewed by Trustees annually and the most significant risks are reviewed by the Finance Committee on a quarterly basis. Trustees have satisfied themselves that adequate systems and procedures are in place to manage all of the identified risks and there are currently no significant areas of concern.

This year, we introduced an enhanced approach to risk management by introducing a new classification of identified risks - as point risks, enduring risks or emerging risks – alongside the level of risk, and this was very helpful in focussing discussions around risk.

In terms of ongoing risk management, we continue to review and strengthen our IT security arrangements by providing regular cyber security awareness training for staff and Trustees and undertaking external penetration testing and phishing simulation campaigns. We continue to maintain a strong focus on data protection and are confident that we are fully GDPR-compliant.

The Trustees treat safeguarding of our beneficiaries as an important priority and we have a comprehensive safeguarding policy in place. Sadly, during the 12-month reporting period, safeguarding concerns involving family members or carers were identified in ten cases and reported to external bodies (Local Authority Safeguarding leads and/or the Police) in accordance with our Policy.

Achievements and Performance

We continue to gather robust data on our beneficiaries’ evolving needs through our structured programme of face-to-face Holistic Needs Assessments and this evidence informs the development of our own services and support and also our discussions with funders.

We continue to provide a wide range of ongoing support to our beneficiaries, tailored to meet their individual needs and, now that they are almost all in their 60s and experiencing the usual health issues associated with ageing, their needs are becoming increasingly complex and multi-layered.

Over the 12-month period, 330 individual beneficiaries (over 75% of the beneficiary community) had contact with our Health & Wellbeing Team, many on multiple occasions. This compares to 287 beneficiaries in the previous 12-month reporting period.

The most common issues that beneficiaries require support with are health issues – including access to NHS services - mental health/emotional wellbeing, benefits, care and carers, and home adaptations – these issues account for almost 90% of all contacts with the Health & Wellbeing Team.

In addition to providing significant day-to-day support, at the start of the year we identified a number of ambitious goals for 2023/24.

These are set out on the next page together with an overview of the progress made over the last 12 months:

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We said we would… We…
…. set up a working group on Vehicles and
Vehicle Adaptations and identify
'Beneficiary Experts' to ensure that
beneficiaries have the information and
support they need to make decisions
regarding appropriate vehicles and
adaptations.		 …. established the working group, who
have done some really valuable work
including creating a role description and
overseeing the recruitment of seven
Beneficiary Advisers (they prefer this title
to ‘Beneficiary Experts’!)
…. undertake a review of post-66 benefit
changes that will affect beneficiaries		 ... completed the review (working in
partnership with Disability Rights UK
(DRUK)) and produced a factsheet and
web-copy explaining the changes to
benefits post statutory-retirement age to
beneficiaries.
… implement the outstanding actions from
our Independent Governance Review		 … implemented the majority of
recommendations. The two outstanding
areas – implementing delegated decision-
making and implementing periodic reviews
of Board effectiveness – are scheduled for
the first half of 2024/25.
…. develop and embed our new Beneficiary
Insights Panel		 … arranged induction for Panel Members
and provided a high level of ongoing
support to enable them to engage fully and
participate in discussions
….. undertake a preliminary evaluation of
our new Private Treatment Scheme and
Specialist Mental Health Network		 ... undertook an interim review in early
2024, focussing on quantitative data, and
have now gathered feedback from
beneficiaries in order to complete a more
detailed evaluation before the end of the
calendar year.
….. develop tailored information for
beneficiaries to enable them to understand
and access the full range of NHS services
that are available post-60		 ... produced a factsheet outlining
availability of services post-65 (which is
when most changes to service provision
occur) for beneficiaries.

Over the last 12 months, we also:

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Plans for the Future

In the next 12 months, the Trustees and staff will continue to work together to implement our new, jointly-owned Strategic Plan. Our plans include:

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Financial Review

The Trust has an investment portfolio of £155m which, combined with annual donations from Diageo, fund the Annual Grants payable to its beneficiaries.

During the year the Trust allocated grants totalling £36.4m (2023: £65.8m) to its beneficiaries. The decrease compared to the previous year was due to the payment in 2023 of an additional one-off lump sum, agreed as part of the four-yearly Diageo Chairs’ Review. The Trust received donations from Diageo plc totalling £12.4m (2023: £11.7m).

Health Grant funding from the four Health (and Social Care) Departments of the United Kingdom totalled £13.3m (2023: £13.0m). As Health Grant funding is provided for specific, agreed health and wellbeing purposes, these are accounted for by the Trust as funds restricted for these purposes.

The Trust is committed to managing its resources effectively and achieving value for money. It operates a robust budget management system which involves regular review of activity and expenditure by budget holders, oversight by the Management Team and regular reporting of variances to the Trust’s Finance Committee. The Trust does not actively fundraise and 100% of its resources are utilised for charitable purposes, including charity governance. During 2023/24, 93% of outgoing resources were in the form of grants to our beneficiaries. Of the remaining 7% of expenditure, three-quarters was spent on providing health and wellbeing support and financial guidance directly to our beneficiaries by our staff and volunteers. The balance of resources was utilised to administer beneficiary grants, assess applications from potential new beneficiaries, manage the investment portfolio, and ensure effective governance of the Trust.

Investment Objectives

The principal objective of the investment policy is to generate sufficient income and capital return to enable the Trustees to pay Annual Grants for the entire lives of the beneficiaries.

The environmental, social and governance (ESG) nature of Trust investments has been considered at length by the Trustees. The Trustees believe that ESG-related risks, including climate change risks, are financially material and an important component of investment risk. The Trustees believe that organisations that soundly manage ESG-related risks are more likely to be financially sustainable over time, and therefore deliver better long-term risk-adjusted returns. Trustees currently hold £37.5m of funds in an ESG fund with Legal & General Investment Management (LGIM).

As all of the Trust investments are held within pooled funds, the decisions regarding the selection of investments is entrusted to the investment managers, who each act within agreed guidelines. Trustees regularly ask investment managers to explain how ESG factors are incorporated into their decisions regarding the selection of investments.

In line with the Deed of Covenant with Diageo, the Trustees have adopted an investment policy which will reduce the investment risk of the portfolio over the lifetime of the Trust. Since 2023, in line with the strategy, Trustees began the process of de-risking the portfolio with the long-term intention of achieving a low-risk portfolio by 2037. The low-risk portfolio is defined as a mixture of bonds, cash, swaps and other financial instruments with up to 10% in return-seeking assets, designed to provide the anticipated future payments from the Trust with a significant degree of certainty. The de-risking carried out this year involved disinvesting in full (£6.4m) from Twentyfour Asset Management as well as moving £10.5m from equities (held by Schroders, BlackRock and Legal & General Investment Management) into the BlackRock fixed income portfolio.

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The current benchmark against which performance will be measured is represented by a portfolio comprising of 65% global equities and 35% bonds.

Investment Strategy and Performance

The investment strategy is currently implemented through a combination of investments and managers as set out in the table below, together with the ranges within which the policy is managed, in line with the Statement of Investment Principles dated September 2023.

Portfolio Manager Central Allocation
(% of Assets)		 Target Ranges
(% of Assets)
Active Global Equities Schroders 24 15-35
Passive Global Equities BlackRock and LGIM 41 35-55
Bond Portfolios BlackRock 34 20-40
Cash Within above
portfolios		 1 0-20

Cash deposits are held with a variety of banks and investment managers.

The total annual return on the Trust’s investments for the year was 17.8% (2023: 12.2%) which is higher than the benchmark of 16.0%. This strong performance has been driven by equities held with BlackRock and Legal & General Investment Management.

Over the last three years the average rate of return has been 7.6% pa, which is higher than the benchmark of 7.2% pa.

Significant Investments

At the year end, the following investments represented 5% or more of the total market value of investments:

nvestments:
£000s %
Legal and General Future World ESG Fund 37,546 24
Schroders Global Recovery Fund 27,664 18
BlackRock Global Corporate ESG Bond 26,418 17
BlackRock Overseas Government Bond 25,234 16
BlackRock North America Fund 17,648 11
Schroders Charity Equity Fund 9,318 6

Derivative Instruments

The Trustees have authorised Schroders to use financial contracts, known as derivatives, to help manage investment portfolio risk. At the year end the open derivatives position was a net liability of £0 (note 9) (2023: £0).

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Diageo Covenant

A Deed of Covenant is in place, signed by the Trustees and Diageo plc (successor to The Distillers Company), which sets out Diageo’s commitment to long-term support for Thalidomide Trust beneficiaries and to underwrite the investment policy of the Trust. The Covenant enables the Thalidomide Trust both to maintain the programme of Annual Grants to its beneficiaries and deliver ongoing support in response to their evolving and growing health and wellbeing needs.

The Deed of Covenant is reviewed by the Trustees, beneficiary representatives and Diageo periodically. During the latest of these discussions in 2023, Diageo agreed an increased level of support which included an additional lump sum grant payment to beneficiaries in recognition of their increasing health and wellbeing needs as they get older. These funds were taken from the Trust’s existing investment portfolio, as agreed with Diageo. Diageo also agreed additional funding to meet specific health and wellbeing needs that the Trust was able to evidence from the Holistic Needs Assessments carried out over the preceding six years. In January 2024, an updated Deed of Covenant was signed which reflected this increased support.

Government Health Grants

In addition to the assets held by the Trust and the income from Diageo, the UK government supports the Trust by way of Health Grant funding agreements in place with the four UK Health (and Social Care) Departments since 2009. This money has helped beneficiaries to respond to their growing needs as they age – in order to maximise their independence and quality of life, minimise further deterioration and improve their overall health and wellbeing. In March 2021, the Chancellor, Rishi Sunak, announced a commitment to lifetime funding of the Health Grant to beneficiaries living in England and during 2022 both Wales and Scotland announced the same commitment. In 2023, new Health Grant agreements were signed by the Health (and Social Care) Departments in England, Scotland and Wales which cover the period to 2027. In 2024, the Northern Ireland government announced the same lifetime commitment and grant agreement for beneficiaries living in Northern Ireland.

Grant Making and Reserves Policy

Beneficiaries receive an Annual Grant, based on their level of disability, from funds that come from Diageo each year in line with the Covenant and the Trust’s reserves, including the interest and investment growth accrued.

The Trustees’ distribution policy continues to provide individual Annual Grants to beneficiaries for the whole of their lives. The Trustees have to set a policy which will ensure reserves are not depleted whilst beneficiaries are in need of funding, whilst at the same time aiming to ensure that all assets are utilised by the time of the death of the last beneficiary. The total unrestricted funds at 30 September 2024 stood at £142m (2023: £132m) whereas the Restricted Fund had a balance of £0.7m at the year-end (2023: £0.5m).

Statement of the Corporate Trustee’s Responsibilities

The Trustee is responsible for preparing the Trustee’s Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and their application for that period.

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In preparing these financial statements, the Trustee is required to:

The Trustee is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable it to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. The Trustee is also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustee is responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Signed on behalf of the Corporate Trustee:

David Body Chair of the Board of the Thalidomide Trust Company

22 January 2025

1 The going concern basis means that the charity has the resources to continue in operations for a minimum of 12 months from the date of signing these financial statements

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Independent auditors’ report to the Trustee of The Thalidomide Trust

Report on the audit of the financial statements

Opinion

We have audited the financial statements of The Thalidomide Trust for the year ended 30 September 2024 which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

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

We have nothing to report in this regard.

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Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on pages 15 to 16, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors’ responsibilities for the audit of the financial statements

We have been appointed as auditors under the Charities Act 2011 and report in accordance with regulations made under that Act.

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

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

Identifying and assessing risks related to irregularities:

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

Laws and regulations of direct significance in the context of the charity include the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and guidance issued by the Charity Commission for England and Wales.

Audit response to risks identified:

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

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and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charity’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Saffery LLP

Westpoint Peterborough Business Park Lynch Wood Peterborough PE2 6FZ

Statutory Auditors

Date:

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

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Statement of financial activities for the year ended 30 September 2024

Note
Income from:
Diageo donations:
3
Health Department grants
5
Investment income
2
Other income
Total
Expenditure on:
Raising funds (solely
investment management
fees)
6
Charitable activities
6
Total
Net gains/(losses) on
investments
9
Net income (expenditure)
Reconciliation of funds
Fund balances brought
forward
11
at 1 October 2023/2022
Fund balances carried
forward
at 30 September 2024/2023
11		 Unrestricted
funds
£000s
12,373
-
4,201
34
16,608
(312)
(25,818)
(26,130)
18,944
9,422
132,314
141,736		 Restricted
funds
£000s
-
13,274
282
-
13,556
-
(13,322)
(13,322)
-
234
486
720		 Total funds
2024
£000s
12,373
13,274
4,483
34
30,164
(312)
(39,140)
(39,452)
18,944
9,656
132,800
142,456		 Total funds
2023
£000s
11,666
13,037
5,023
75
29,801
(316)
(67,768)
(68,084)
13,273
(25,010)
157,810
132,800

All activities are continuing. All gains and losses recognised in the year are included in the Statement of Financial Activities.

20

Balance Sheet as at 30 September 2024

Note
Fixed assets
Tangible assets
8
Investments
9
Current assets
Debtors and prepayments
15
Advance of grants
15
amounts falling due within one year
amounts falling due after one year
Cash at bank and in hand
Creditors: amounts falling due
within one year
Beneficiary nominee accounts
12
Creditors and accruals
16
Net current assets
Total assets less current liabilities
Net assets
Trust funds
General fund
11
Beneficiary memorandum accounts
11,12
Restricted fund
11		 Total funds
30/09/2024
£000s
402
154,909
155,311
125
267
765
11,380
12,537
(25,149)
(243)
(25,392)
(12,855)
142,456
142,456
138,733
3,003
141,736
720
142,456		 Total funds
30/09/2023
£000s
443
146,616
147,059
108
214
551
14,281
15,154
(29,183)
(230)
(29,413)
(14,259)
132,800
132,800
128,815
3,499
132,314
486
132,800

The financial statements on pages 20 to 40 were approved by the Board on 22 January 2025 and signed on behalf of the Corporate Trustee by:

David Body Mark Benstead

Director Director

21

Cash flow statement for the year ended 30 September 2024

Note
Cash flows from operating activities:
Net cash provided by (used in) operating activities
Cash flows from investing activities
Dividends, interest and rents from investments
Purchase of tangible fixed assets
8
Proceeds from sale of tangible fixed assets
Purchase of investments
9
Proceeds from sale of investments
9
Net cash provided by (used in) investing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents as 1 October 2023
Cash and cash equivalents as at 30 September 2024
Cash held for investment
9
Cash at bank and in hand
Cash as at 30 September 2024
Reconciliation of income/(expenditure) to net
cash (outflow) from operating activities
Net expenditure for the reporting period
as per the statement of financial activities
Adjustments for:
Depreciation & profit on disposals
(Gains)/losses on investments
Dividends, interest and rents from investments
Increase/(decrease) in creditors due within one year
(Increase)/decrease in debtors
Net cash provided by (used in) operating activities		 Total funds
2024
£000s
(18,035)
4,483
-
-
(14,180)
25,303
15,606
(2,429)
15,174
12,745
1,365
11,380
12,745
9,656
41
(18,944)
(4,483)
(4,021)
(284)
(18,035)		 Total
funds
2023
£000s
(35,941)
5,023
(159)
14
(37,591)
74,466
41,753
5,812
9,362
15,174
893
14,281
15,174
(25,010)
26
(13,273)
(5,023)
6,480
859
(35,941)

22

Notes to the financial statements for the year ended 30 September 2024

1. Accounting policies

Basis of preparation

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2022 and UK Generally Accepted Practice as it applies from 1 January 2019.

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Trust, which is an unincorporated discretionary charitable trust, constitutes a public benefit entity as defined by FRS 102. The sole trustee is the Thalidomide Trust Company, which is an incorporated trustee company. The financial statements have been prepared on a going concern basis (that is to say, that the charity has the resources to continue in operations for a minimum of 12 months from the date of signing these financial statements) and accounting policies have been applied consistently.

The undertaking by Diageo plc in their 2024 Deed of Covenant is to make annual donation payments until 2037, with a commitment thereafter to ensure funding is sufficient to maintain grants for the lifetime of beneficiaries. The Health Grant funding agreements have been formally extended to a lifetime commitment by England, Scotland, Wales and now Northern Ireland. These agreements support the conclusion that the charity is a going concern.

The financial statements are prepared in sterling, which is the functional currency of the Trust, and rounded to the nearest £000. The date for authorisation of the issue of the financial statements was 22 January 2025.

The Thalidomide Trust has taken advantage of the exemption under section 24.13A of the Charities SORP not to prepare consolidated accounts. The financial statements present information about the Trust as an individual entity and not about its group.

Fund accounting

Unrestricted Funds

Unrestricted funds are expendable at the discretion of the Trustees in the furtherance of the objects of the Thalidomide Trust. The Trust’s level of reserves is maintained in order to meet the anticipated future grant allocations.

The General Fund and Beneficiary Memorandum Accounts are derived from funds provided by Diageo plc and its predecessors, and investment returns, as defined in note 12.

23

Notes to the financial statements for the year ended 30 September 2024 (continued)

1. Accounting policies (continued)

Restricted Funds

Restricted income funds are funds whose use is restricted to specific purposes according to the terms on which the funds were received. Where income is received for purposes specified by the donor that income is shown as restricted in the Statement of Financial Activities. Expenditure for the specified purposes is shown as restricted expenditure. Any unexpended balance at the balance sheet date is carried forward as a restricted income fund.

Restricted Funds are derived from the Health (and Social Care) Departments in England, Scotland, Wales and Northern Ireland as detailed in note 5.

Tangible fixed assets

The cost of tangible fixed assets is their purchase cost, together with any incidental costs of acquisition. Depreciation is calculated so as to write off the cost of tangible fixed assets on a straight-line basis over the useful economic lives of the assets concerned.

The principal depreciation rates used are as follows:

Motor vehicles - 25% per annum
Furniture and equipment - 20% per annum
Buildings - 2% per annum
Fixtures and fittings - 14 % per annum

The Trust has a capitalisation threshold of £2,500.

Tangible fixed assets are written down to their realisable value if it is considered there has been a permanent diminution in their value.

Investments

Unquoted unit trust investments are stated at the market value as established by the administrators of the unit trust. Market value is based upon the buying and selling price of the underlying securities in the relevant market with allowances made for cash, accrued income and costs within the unit trust fund.

Derivatives are initially recognised at transaction value and subsequently measured at their settlement value.

Income from investments

Income from investments is recognised when its receipt is probable and the amount receivable can be measured reliably. Any realised and unrealised gains and losses on revaluation or disposals are combined in the statement of financial activities.

24

Notes to the financial statements for the year ended 30 September 2024 (continued)

1. Accounting policies (continued)

Other incoming resources

Other income consists of fee income charged to beneficiaries, which is recognised upon the issuance of Advances on future grants to beneficiaries. These Advances are intended to assist with major property, mobility and health related purchases. The fee level is based on the cost to the Trust of making the Advances, which includes a contribution towards the loss of income generated by the Trust’s cash and investments as a result of withdrawing the cash to be advanced to the beneficiary.

Diageo donation

The Diageo donation is paid under the terms of a Deed of Covenant dated 9 January 2024 which sets out an undertaking to make annual payments until 2037 and with a commitment thereafter to further financial contributions if required, to ensure funding is sufficient to maintain grants for the lifetime of beneficiaries.

The income is recognised when there is evidence of entitlement, receipt is probable and the amount can be measured reliably. For the Diageo donation, this is upon the receipt of the cash each year.

Income from Health (and Social Care) Departments

The income is recognised when there is evidence of entitlement, receipt is probable and the amount can be measured reliably. For the Health (and Social Care) Departments Grants, this is upon the receipt of the cash each year.

Pension arrangements

The Trust operates a defined contribution pension scheme for employees. Contributions are paid into the group scheme, the assets of which are held in an independently administered fund. Contributions are charged to the statement of financial activities as they become payable. The Trust provides no other post-retirement benefits to its employees.

Charitable expenditure

All charitable expenditure is accounted for on an accruals basis and has been classified under the category headings, which aggregate all costs related to each category, as shown in note 6. Where costs cannot be directly attributed to particular headings they have been allocated in proportion to the time spent by staff on work under each heading.

Grant-making

Grants payable are accounted for in full as creditors of the charity when approved by the Trustees.

25

Notes to the financial statements for the year ended 30 September 2024 (continued)

1. Accounting policies (continued)

Non-financial support costs

Beneficiary support costs comprise the direct costs, including staff, attributable to delivering the Trust’s wide range of financial and non-financial support to beneficiaries.

Governance

Governance costs cover expenditure on maintaining the constitutional and policymaking framework of the Trust and compliance with statutory requirements.

Irrecoverable VAT

Any irrecoverable VAT is charged to the statement of financial activities, or capitalised as part of the cost of the related asset, where appropriate.

Judgements and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include the recognition of incoming donations and grants, and value of the Advances of Grants amounts falling due within, and after, one year.

The value of incoming grants and donations are agreed on an annual basis with both Diageo plc and the four Health (and Social Care) Departments in the UK to reflect the level of support needed for current beneficiaries. Future receipts are not anticipated within the financial statements as there is uncertainty as to the level of the receipts.

Advances of Grants are recovered by the Trust through deductions from future grants allocated to beneficiaries. Where possible, the Trust places a charge on property as security for the Advance and has further reduced the risk of the non-repayment of an Advance through a debit balance insurance policy held by the Trust. Based on these actions, in the judgement of the Trust’s management the Advances as at the year-end are fully recoverable.

26

Notes to the financial statements for the year ended 30 September 2024 (continued)

2. Investment income

Unrestricted
Global Unit Trusts (Equities)
Global Unit Trusts (Fixed Income)
UK Charity Funds (Equities)
Cash Holdings
Restricted fund
Cash Holdings
Total per Statement of Financial Activities		 2024
2023
£000s
£000s
2,064
2,641
1,448
1,327
490
613
199
305
4,201
4,886
282
137
4,483
5,023

3. Diageo plc donation

On 9 January 2024 Diageo plc entered into a Deed of Covenant with the Thalidomide Trust which replaced earlier covenants executed by Guinness plc in 1995 and Diageo plc in 2000, 2005, 2012 and 2018.

Under this Covenant future increases in the Annual Grant paid to beneficiaries will continue to be linked to the Retail Price Index (RPI).

4. Investment management fees

The Investment Managers charge a fee for their services based upon an agreed percentage of the market value of the investments under management and a performance related fee.

The Investment Managers’ fees charged for the year amounted to £260,000 (2023: £271,000).

In addition to the Investment Managers’ fees, Trust costs relating to investment management were £52,000 (2023: £44,000). This is made up of £40,000 of investment consultancy services and £11,000 of staff time.

5. Grant-making

Unrestricted Funds: General Grants

The Trustees’ grant-making policy has been:

For beneficiaries with capacity to manage their financial affairs

The Trustees maintain a non-interest bearing nominee account for each beneficiary.

An Annual Grant is paid into the nominee account. A beneficiary has absolute entitlement to the balance in his or her nominee account and the balance is recognised as a creditor of the Trust.

27

Notes to the financial statements for the year ended 30 September 2024 (continued)

5. Grant-making (continued)

Beneficiaries can instruct the Trust to make payments up to the balance in their nominee accounts from which they have entire discretion over the amount and frequency of the payments.

The Annual Grant is calculated with reference to the financial position of the Trust and each beneficiary’s degree of disability, in accordance with the criteria applicable to distributions set out in the Diageo Deed of Covenant. The Trustees reserve the right to amend the method of calculating the Annual Grant.

In addition to the Annual Grant, the Trustees will consider requests for Major Advances (normally relating to significant one-off costs to meet mobility and housing needs), Short-Term Advances (to enable beneficiaries to make a transition in their housing arrangements where there are complex needs) and Emergency Advances (to meet unanticipated costs in the short term).

Where a Major, Short-Term or Emergency Advance has been made, future Annual Grants will be reduced by the amortisation of the Advance and an agreed annual fee to reflect the costs associated with making the Advance and the reduction in the Trust’s investment assets as a result of the Advances. Major Advances will normally result in a reduction to the Annual Grants for a number of years whereas Short-Term and Emergency Advances will normally result in a reduction to the following year’s Annual Grant.

In addition, the Trustees have established a small Exceptional Needs Fund which allows beneficiaries with exceptional health and wellbeing needs which cannot reasonably be met from their existing income to apply for an additional one-off grant.

For beneficiaries who lack capacity to manage their financial affairs

The Trustees make payments to meet the needs of the beneficiary following discussion with the beneficiary’s deputy or attorney officially registered with the Court of Protection to manage the beneficiary’s financial affairs. Once funds have been transferred to the deputy or attorney for the benefit of the beneficiary, control of these funds passes absolutely out of the Trust. However, in line with Trust’s policy on beneficiaries who lack capacity, there is a requirement for regular reporting on how these funds are utilised to meet the needs of the beneficiary and professional oversight.

Until such time as beneficiaries who lack capacity have a professional deputy in place, or where the appointed deputy has not fully complied with the regular reporting requirements, their Annual Grants are held in Beneficiary Memorandum Accounts as designated funds.

All payments will always remain at the discretion of the Trustees and will be allocated in accordance with the principles set out in the Trust Deed and in line with the Trust’s policy on beneficiaries who lack capacity.

28

Notes to the financial statements for the year ended 30 September 2024 (continued)

5. Grant-making (continued)

Grant-making (continued)
2024 2023
Annual Grants Number of
beneficiaries*		 Value of
grants		 Number of
beneficiaries*		 Value of
grants
£000s £000s
Beneficiaries with capacity to
manage their financial affairs		 409 21,878 414 49,207
Beneficiaries who lack capacity
to manage their financial 22 1,717 22 3,761
affairs
Total of Grants 431 23,595 436 52,968

*At point of allocation.

Restricted Funds: Government Grants

The four UK Health (and Social Care) Departments provide funding for the Health Grants to meet beneficiaries’ health and wellbeing needs. In 2023 the governments of England, Scotland and Wales made a commitment to lifetime funding of the Health Grant, renewed the grant agreements for the first four-year period and agreed to review the level of funding at the end of the four-year period, based on beneficiary numbers and needs. During the year, the government of Northern Ireland aligned to the same lifetime commitment of funding and four-year grant agreement.

Health Grant funding is distributed in accordance with the Trust’s existing distribution policy. The costs associated with administering the scheme are met from the funding. Details of Health Grant direct and indirect costs are set out in note 6. The level of costs charged has been determined by reference to factors such as the time spent on Health Grant related work (both administering and monitoring /reporting activities).

Trust staff and Beneficiary Representatives meet with each of the Health (and Social Care) Departments on an ongoing basis. One of the key objectives of these reviews and the related discussions is to actively manage the level of support requested from the four UK Health (and Social Care) Departments and the level and nature of the Health Grant fund expenditure such that there are no long-term deficits, or surpluses, on the restricted Health Grant funds.

Health Grants by Country

£000s
Fund balances as at 1 October 2023
Incoming Health Grants
Health Grants Allocation
Interest income
Health Grants - Direct costs
Health Grants – Indirect costs
Fund balances as at 30 September
2024		 England
Scotland
Wales
N. Ireland
Total
£000s
298
144
6
38
486
9,814
1,698
1,188
574
13,274
(9,545)
(1,545) (1,150)
(553)
(12,793)
220
23
29
10
282
(58)
(89)
(7)
(3)
(157)
(291)
(47)
(23)
(11)
(372)
438
184
43
55
720

29

Notes to the financial statements for the year ended 30 September 2024 (continued)

6. Trust costs and net income

Note
Expenditure on raising funds:
Investment management fees
Support costs (see below)
4
Total Expenditure on raiding funds
Charitable activities:
Grants
5,12
Net decrease in memorandum
account balances
11,12
Subtotal
Costs of grant making (see below)
Beneficiary support costs (see
below)
Support costs (see below)
Total Charitable activities		 2024
Unrestricted
Restricted
Total
£000s
£000s
£000s
260
-
260
52
-
52
312
-
312
23,595
12,793
36,388
496
-
496
24,091
12,793
36,884
82
23
105
1,319
411
1,730
326
95
421
25,818
13,322
39,140		 2023
Unrestricted
Restricted
Total
£000s
£000s
£000s
272
-
272
44
-
44
316
-
316
52,968
12,795
65,762
103
-
103
53,071
12,795
65,865
137
33
170
1,015
344
1,360
291
82
373
54,514
13,254
67,768
2024
Expenditure on raising
funds:
Investment management
Expenditure on
charitable activities:
Costs of grant-making
Beneficiary support costs
Other costs:		 Staff
and
other
HR costs
Admin
and
running
costs
Legal,
Professional
and Audit
fees
Beneficiary
Engagement
Campaign
ing Costs
Research &
Development
Total
Unrestricted
£000s
£000s
£000s
£000s
£000s
£000s
£000s
8
3
40
-
-
-
52
57
18
7
-
-
-
82
697
613
4
-
-
5
1,319		 Restricted
costs
allocation
£000s
-
23
411
95
- Governance & admin
- New claims
- Campaigns		 184
47
43
18
-
-
292
16
18
-
-
-
-
34
-
-
-
-
-
-
-
Total other costs
Total unrestricted costs
Restricted costs
Beneficiary support costs
- Health Grant recharged
Total costs – 2024
Total costs - 2023 (see
below)		 200
65
43
18
-
-
326
962
699
95
18
-
5
1,779

312
193
16
8
-
-
529
529
1,274
892
111
26
-
5
2,308
1,243
510
151
17
7
18
1,947

30

Notes to the financial statements for the year ended 30 September 2024 (continued)

6. Trust costs and net income (continued)

Comparative
2023
Expenditure on raising
funds:
Investment management
Expenditure on
charitable activities:
Costs of grant-making
Beneficiary support costs
Other costs:		 Staff
and
other
HR costs
Admin and
running
costs
Legal,
Professional
and Audit
fees
National
Advisory
Council
Campaign
ing Costs
Research &
Development
Total
Unrestricted
£000s
£000s
£000s
£000s
£000s
£000s
£000s
6
4
34
-
-
-
44
81
19
38
-
-
-
137
684
304
5
3
-
18
1,015		 Restricted
costs
allocation
£000s
-
33
344
82
- Governance & admin
- New claims
- Campaigns		 152
38
48
14
-
-
252
18
12
-
-
-
-
30
1
-
-
-
7
-
9
Total other costs
Total unrestricted costs
Restricted costs
Beneficiary support costs
- Health Grant recharged
Total costs – 2023		 171
51
48
14
7
-
291
942
377
125
17
7
18
1,488

301
133
26
-
-
-
459
459
1,243
510
151
7
7
18
1,947
Net income for the year is stated after charging/crediting:
2024 2023
£000s £000s
Depreciation 41 34
Audit Fees 34 32
Profit on disposal of fixed assets - (8)

31

Notes to the financial statements for the year ended 30 September 2024 (continued)

7. Trustee and employee information

The monthly average number of persons employed by the Trust during the year was 21 (2023: 19).

Staff costs (for the above persons)
Gross salaries and wages
Social security costs
Employer pension contributions
Other employee benefits		 2024
£000s
2023
£000s
930
854
108
94
93
83
32
32
1,163
1,063

The number of employees whose total emoluments (i.e. salary and taxable benefits) exceeded £60,000 were:

0,000 were:
2024 2023
Number Number
£60,001 - £70,000 1 1
£80,001 - £90,000 2 2
£110,001 - £120,000 0 1
£120,001 - £130,000 1 0

No remuneration was paid to the Trustees of The Thalidomide Trust Company Ltd (2023: £nil). Travel and subsistence expenses of £7,000 (2023: £7,000) were reimbursed to 6 (2023: 5) Trustees of The Thalidomide Trust Company Ltd during the year.

The total remuneration and benefits received by the Trust’s key management personnel was £330,000 (2023: £318,000) for 3 employees (2023: 3).

32

Notes to the financial statements for the year ended 30 September 2024 (continued)

8. Tangible assets

Tangible assets comprise the following:

Cost
At 1 October 2023
Additions
Disposals
At 30 September 2024
Accumulated depreciation
At 1 October 2023
Charged
Disposals
At 30 September 2024
Net book value
At 30 September 2024
At 30 September 2023		 Motor
Vehicles
Furniture
&
Office
Building
Office
Refurb
Total
equipment
£000s
£000s
£000s
£000s
£000s
26
12
465
159
662
-
-
-
-
-
-
-
-
-
-
26
12
465
159
662

8
6
194
11
219
7
2
9
23
41
-
-
-
-
-
15
8
203
34
260
11
4
262
125
402
18
6
271
148
443

All tangible fixed assets are unrestricted.

9. Investments

. Investments
Unlisted investments
Equities
Fixed Income
Cash held for investments
(including accrued investment income)
Total per Balance Sheet		 2024
2023
£000s
£000s
100,895
103,634
52,649
42,090
1,365
893
154,909
146,616

All equities and fixed income are held in Global Unit Trusts.

All investments are held as unrestricted funds.

33

Notes to the financial statements for the year ended 30 September 2024 (continued)

9. Investments (continued)

The movement on investments in the year was as follows:

Market value b/fwd 1 October 2023
Less: Disposal proceeds/ share exchanges
Add: Purchases at cost/share exchanges
Realised and unrealised gains/(losses)
Increase/(decrease) in cash held for
investment
(including accrued investment income)
Market value at 30 September 2024
Historical cost at 30 September 2024		 2024
2023
£000s
£000s
146,616
170,591
(25,303)
(74,466)
14,180
37,591
18,944
13,273
472
(373)
154,909
146,616
121,523
127,061

The Trustees believe that the carrying value of the listed investments is supported by the underlying net assets.

10. Subsidiary

The valiDATE Trust was established on 7 August 2019 as a Private Limited Company by guarantee. The Thalidomide Trust has taken advantage of the exemption under section 24.13A of the Charities SORP, and not consolidated the results of valiDATE Trust in the Group financial statements.

ValiDATE Trust was established by the Trustees of the Thalidomide Trust with the intention of making its diagnostic algorithm available to other countries receiving applications from potential thalidomide survivors as an initial screening tool. During the year, the Directors of valiDATE Trust and the Trustees of the Thalidomide Trust agreed that maintaining valiDATE as a separate legal entity (with associated costs) was not financially viable, and the algorithm (intangible asset) and its activity were transferred to the Thalidomide Trust on 18 June 2024. The net book value of valiDATE Trust’s intangible asset, which amounted to £1,000 at 30 September 2024, has been expensed in full in the accounts due to the unlikelihood of any significant future economic benefit flowing from it.

ValiDATE Trust ceased trading on 30 June 2024. The Directors of valiDATE Trust and the Trustees of the Thalidomide Trust have agreed to strike off valiDATE Trust.

At the 30 September 2024, valiDATE Trust owed the parent company, The Thalidomide Trust, £33,000 (2023: £38,000).

34

Notes to the financial statements for the year ended 30 September 2024 (continued)

10. Subsidiary (continued)

The results of valiDATE Trust for the period ended 30 September 2024 are shown below.

Turnover and other income
Cost of sales and expenses
Profit for the year
Profit and loss reserves		 2024
£
13,185
(10,852)
2,333
(12,109)

11. Trust Fund including comparatives

Unrestricted Funds
Designated
Beneficiary
General		 Restricted Total
Memorandum
Fund		 Fund Trust
Accounts Funds
£000s
£000s		 £000s £000s
Balance as at 1 October 2023 3,499
128,815		 486 132,800
Net incoming/(outgoing) resources -
9,422		 234 9,656
as per Statement of Financial Activities
Adjustment for net increase (496)
496		 - -
in beneficiary memorandum accounts
(note 12)
Balance as at 30 September 2024 3,003
138,733		 720 142,456
Note 12 Note 5

35

Notes to the financial statements for the year ended 30 September 2024 (continued)

11. Trust Fund including comparatives (continued)

Unrestricted funds
Designated
Beneficiary
General
Restricted
Total
Memorandum
Fund
Fund
Trust
Accounts
Funds
£000s
£000s
£000s
£000s
Fixed Assets
Tangible
-
402
-
402
Investments
2,261
152,649
-
154,909
Current Assets
Debtors and Prepayments
-
125
-
125
Advance of Grants
-
1,032
-
1,032
Cash at Bank and in Hand
742
3,088
7,550
11,380
Creditors: amounts falling due
within one year
Beneficiary nominee accounts
-
(18,319)
(6,830)
(25,149)
Creditors and accrued expenses
-
(243)
-
(243)
Balance as at 30 September
2024
3,003
138,733
720
142,456
Note 12
Note 5
Unrestricted funds
Comparatives
Beneficiary
General
Restricted
Total
Memorandum
Fund
Fund
Trust
Accounts
Funds
£000s
£000s
£000s
£000s
Balance as at 1 October 2022
3,602
153,642
566
157,810
Net incoming/(outgoing) resources
as per Statement of Financial
Activities
- (24,930)
(80)
(25,010)
Adjustment for net increase in
beneficiary memorandum
accounts
(103)
103
-
-
Balance as at 30 September 2023
3,499
128,815
486
132,800
Note 12
Note 5		 Unrestricted funds
Designated
Beneficiary
General
Restricted
Total
Memorandum
Fund
Fund
Trust
Accounts
Funds
£000s
£000s
£000s
£000s
Fixed Assets
Tangible
-
402
-
402
Investments
2,261
152,649
-
154,909
Current Assets
Debtors and Prepayments
-
125
-
125
Advance of Grants
-
1,032
-
1,032
Cash at Bank and in Hand
742
3,088
7,550
11,380
Creditors: amounts falling due
within one year
Beneficiary nominee accounts
-
(18,319)
(6,830)
(25,149)
Creditors and accrued expenses
-
(243)
-
(243)
Balance as at 30 September
2024
3,003
138,733
720
142,456
Note 12
Note 5
Unrestricted funds
Comparatives
Beneficiary
General
Restricted
Total
Memorandum
Fund
Fund
Trust
Accounts
Funds
£000s
£000s
£000s
£000s
Balance as at 1 October 2022
3,602
153,642
566
157,810
Net incoming/(outgoing) resources
as per Statement of Financial
Activities
- (24,930)
(80)
(25,010)
Adjustment for net increase in
beneficiary memorandum
accounts
(103)
103
-
-
Balance as at 30 September 2023
3,499
128,815
486
132,800
Note 12
Note 5		 Unrestricted funds
Designated
Beneficiary
General
Restricted
Total
Memorandum
Fund
Fund
Trust
Accounts
Funds
£000s
£000s
£000s
£000s
Fixed Assets
Tangible
-
402
-
402
Investments
2,261
152,649
-
154,909
Current Assets
Debtors and Prepayments
-
125
-
125
Advance of Grants
-
1,032
-
1,032
Cash at Bank and in Hand
742
3,088
7,550
11,380
Creditors: amounts falling due
within one year
Beneficiary nominee accounts
-
(18,319)
(6,830)
(25,149)
Creditors and accrued expenses
-
(243)
-
(243)
Balance as at 30 September
2024
3,003
138,733
720
142,456
Note 12
Note 5
Unrestricted funds
Comparatives
Beneficiary
General
Restricted
Total
Memorandum
Fund
Fund
Trust
Accounts
Funds
£000s
£000s
£000s
£000s
Balance as at 1 October 2022
3,602
153,642
566
157,810
Net incoming/(outgoing) resources
as per Statement of Financial
Activities
- (24,930)
(80)
(25,010)
Adjustment for net increase in
beneficiary memorandum
accounts
(103)
103
-
-
Balance as at 30 September 2023
3,499
128,815
486
132,800
Note 12
Note 5
3,003
138,733
720
142,456
Note 12
Note 5
Unrestricted funds
Beneficiary
General
Restricted
Total
Memorandum
Fund
Fund
Trust
Accounts
Funds
£000s
£000s
£000s
£000s
3,602
153,642
566
157,810
- (24,930)
(80)
(25,010)
(103)
103
-
-
3,499
128,815
486
132,800
Note 12
Note 5

36

Notes to the financial statements for the year ended 30 September 2024 (continued)

11. Trust Fund including comparatives (continued)

Notes to the financial statements for the year ended 30 September 2024 (continued)
11. Trust Fund including comparatives (continued)		 Notes to the financial statements for the year ended 30 September 2024 (continued)
11. Trust Fund including comparatives (continued)		 Notes to the financial statements for the year ended 30 September 2024 (continued)
11. Trust Fund including comparatives (continued)
Unrestricted funds
Comparatives
Beneficiary
General
Restricted
Total
memorandum
Fund
Fund
Trust
Accounts
Funds
£000s
£000s
£000s
£000s
Fixed Assets
Tangible
-
443
-
443
Investments
2,382
144,234
-
146,616
Current Assets
Debtors and Prepayments
-
108
7
115
Advance of Grants
-
765
-
765
Cash at Bank and in Hand
1,117
5,540
7,624
14,281
Creditors: amounts falling due
within one year
Beneficiary nominee accounts
-
(22,038)
(7,145)
(29,183)
Creditors and accrued expenses
-
(237)
-
(237)
Balance as at 30 September 2023
3,499
128,815
486
132,800
Note 12
Note 5
12. Beneficiary accounts
Beneficiary Beneficiary Beneficiary
Total
Total
memorandum
nominee
Health
Grant
2024
2023
accounts
accounts
accounts
£000s
£000s
£000s
£000s
£000s
As at 1 October 2023
Balance Sheet- Beneficiary Nominee Accounts
22,038
7,145
29,183
22,646
Balance Sheet- Beneficiary
Memorandum Accounts
3,499
Annual Grant Allocations
369
23,226
23,595
21,865
Lump Sum 2023 Allocations
-
-
-
31,103
Health Grant Allocations
12,793
12,793
12,795
Payments from Beneficiary Accounts
(706)
(27,104)
(13,108)
(40,918)
(59,329)
Transfers between Nominee and
Memorandum Accounts
(159)
159
Adjustment for net decrease/
(increase) in Beneficiary
Memorandum Accounts
-
103
As at 30 September 2024:
Balance Sheet-
Beneficiary Nominee Accounts
18,319
6,830
25,149
29,183
Balance Sheet-
Beneficiary Memorandum Accounts
3,003
Note 11
18,319
6,830
25,149
29,183
3,003
Note 11

37

Notes to the financial statements for the year ended 30 September 2024 (continued)

12. Beneficiary accounts (continued)

Beneficiary Memorandum Accounts are all designated funds and include: accounts for beneficiaries who lack capacity to manage their financial affairs (as detailed at note 5) and lump sum compensation payments allocated to new beneficiaries accepted by the Trust. On the death of a beneficiary, any funds held in Memorandum Accounts revert to the General fund to be used for the benefit of the wider community.

Beneficiary nominee accounts include the Annual Grant funds to which a beneficiary has absolute entitlement and which have not been requested by beneficiaries at the year-end (as detailed in note 5). On the death of a beneficiary, any Annual Grant funds not yet paid out will form part of their estate.

Beneficiary Health Grant accounts include the Health Grant funding made available, but not requested by beneficiaries (as detailed in note 5). On the death of a beneficiary, any Health Grant funds not yet paid out are repaid to the respective government.

13. Taxation

The Trust is a registered charity, and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in furtherance of the charity's primary objectives, if these profits and surpluses are applied solely for charitable purposes.

During the current and prior years, all distributions to beneficiaries were paid under the terms of Statutory Instrument 2004 No 1819, which allows distributions from the Trust to be paid free of income tax, and therefore no income tax liability arose.

14. Pension obligations

Defined contribution scheme

Permanent staff are eligible to receive a pension provision equivalent to 10% of gross salary under a defined contribution scheme. During the year employer contributions to this scheme amounted to £93,000 (2023: £83,000). At the end of the year other creditors and accruals included £13,000 (2023: £12,000) payable in respect of employer pension contributions.

15. Debtors

15. Debtors
Advances of Grants
amounts falling due within one year
amounts falling due after one year
Other debtors
Prepayments and accrued income
Total		 Total funds
2024
£000s
Total funds
2023
£000s
267
214
765
551
35
44
90
64
1,157
873

38

Notes to the financial statements for the year ended 30 September 2024 (continued)

15. Debtors (continued)

As set out in note 5, the Trustees will consider requests for Major Advances, Short-Term and Emergency Advances. The current Advances consist of Major Advances and Emergency Advances balances as at 30 September 2024. Advances are recoverable from future Annual Grant allocations. Emergency Advances are recoverable within one year, Major Advances are recoverable up to a maximum of ten years.

16. Creditors

Creditors: amounts falling due within one year
Beneficiary nominee accounts (note 12)
Other creditors and accruals
Total		 Total funds
2024
£000s
Total funds
2023
£000s
25,149
29,183
243
230
25,392
29,413

17. Net Debt Disclosure

17. Net Debt Disclosure
At 1 October Cash-flows Other non- At 30 September
2023 cash changes 2024
£ £ £ £
Cash 14,281 (2,901) - 11,380
Cash held for investment 893 472 - 1,365
Total 15,174 (2,429) - 12,745

18. Related Party Transactions

Other than expenses paid to Trustees (see note 7), there were no related party transactions during the year.

During the period, the charity made payments for expenditure of its subsidiary, valiDATE Trust of £0 (2023: £0).

At the year end, the Trust was owed £33,000 (2023: £38,000) from the valiDATE Trust. This balance is presented within other debtors.

There is no parent undertaking. The ultimate controlling party is The Thalidomide Trust Company Ltd.

39

Notes to the financial statements for the year ended 30 September 2024 (continued)

19. Comparatives for Statement of Financial Activities

Comparatives
Note
Income from:
Diageo donations
3
Health Department Grants
5
Investment income
2
Other income
Total
Expenditure on:
Raising funds (solely investment
management fees)
6
Charitable activities
6
Total
Net gains/(losses) on investments
9
Net income (expenditure)
Reconciliation of Funds
Fund balances brought forward
11
At 1 October 2022
Fund balances carried forward
at 30 September 2023
11		 Unrestricted
Funds
£000s
11,666
-
4,886
75
16,627
(316)
(54,514)
(54,830)
13,273
(24,930)
157,244
132,314		 Restricted
Funds
£000s
-
13,037
137
-
13,174
-
(13,254)
(13,254)
-
(80)
566
486		 Total Funds
2023
£000s
11,666
13,037
5,023
75
29,801
(316)
(67,768)
(68,084)
13,273
(25,010)
157,810
132,800

40