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2024-03-31-accounts

Annual Report & Accounts For the year ended 31 March 2024

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Porchlight is a limited company registered in England and Wales. headoffice@porchlight.org.uk
Registered company No: 01157482. Registered charity No: 267116. 01227 760078 Porchlight.org.uk
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Annual Report & Accounts: 31 March 2024

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Trustees & administration

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Trustees Appointed Resigned Subcommittee membership
Finance & risk Fundraising & HR Performance & Remuneration
comms quality
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Trustees Appointed Resigned Subcommittee membership Subcommittee membership Subcommittee membership Subcommittee membership Subcommittee membership
Finance & risk Fundraising &
comms		 HR Performance &
quality		 Remuneration
Hilary Edridge (Chair) 29 Apr 2015 30 Nov 2024 X X X
Patrick Fuller (Chair) 30 Sep 2020 X X
Thomas Abbott 27 Jan 2024 X
Anne Chapman 27 Jan 2024 X
Sue Baker 17 Feb 2021 27 Feb 2024 X
Timothy Child 15 Dec 2022 X X
Claire Ellis-Waghorn 27 Jan 2024 X X
Dominic Deeson 15 Feb 2017 10 Jun 2023 X X X
Thomas Evans 15 Feb 2017 X
Stephanie Goad 29 Jun 2018 X X
David Leah 21 Jul 2021 X X
Simon Langworthy 24 May 2023 3 July 2023 X X
Adam Lott 1 Feb 2024 X
Danica McLean 27 Jan 2024 X X
Neil Oldfield 27 Jan 2024 14 Jun 2024 X X
Dr Jenny Robson 12 Jul 2018 X X X
Dr Nicholas Ward 20 May 2020 X X
Naomi Simcox 29 May 2019 30 Jun 2023 X X
Anna Linstead 29 Jan 25 X X

Key management personnel

Administration

Auditor

RSM UK Audit LLP, Portland, 25 High Street, Crawley, West Sussex RH10 1BG

Solicitors

Knights Professional Services Limited, The Brampton, Newcastle-Under-Lyme, Staffordshire ST5 0QW

Bankers

Unity Trust Bank plc, Four Brindley place, Birmingham B1 2JB

Registered address

18-19 Watling Street, Canterbury, Kent CT1 2UA Charity registration number: 267116

Registered company number: 01157482 Incorporated in England and Wales

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Contents

Letter from 4 5 About Porchlight the chair of trustees

6 Our work 7 Sector overview

8 Homelessness 10 Mental health

12 Communities

14 Fundraising

16 Our people

17 Structure & governance

18 Future outlook

’ 19 Trustees Annual Report

’ s Independent Auditor report

27 Financial statements

24

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About Porchlight

We were founded in 1974 to help people facing the devastating effects of homelessness. Today, we also tackle the causes and consequences of poverty and inequality.

In 2024, we are still here for people when it matters most. Offering safety, stability and respect; empowering people to live the life they want; and together, fighting for lasting change.

We work with around 6,000 individuals and families every year. We help people to reach their full potential by breaking down the barriers to housing, mental and physical health, work, education, financial independence or daily living skills.

We have many services that can help support people and how we help depends on someone's situation. Whatever people are facing, we're here for them when it matters most.

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Porchlight’s 50th Anniversary installation of tents
illustrating client quotes
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A safe home, better life and fairer future for everyone.

We're here for people when it matters most.

Everybody deserves to have someone on their side when life gets tough. We draw on decades of experience to help people facing poverty, and inequality in health and housing.

We empower people to live the life they want.

Empowering people so they can thrive takes care, compassion and understanding. We help people see their strengths and connect with others to build the future they want.

We offer safety, stability and respect.

When someone needs help, they may be facing lots of different issues. We create a safety net so everyone can find the support that's right for them.

Together, we fight for lasting change.

Poverty, health and housing injustice are complex problems affecting millions of lives. They are also avoidable. We work to improve understanding of the issues and find sustainable solutions to rebalance an unfair system.

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Letter from the Chair of Trustees

Patrick Fuller Chair of trustees

5,794 people supported

Dear Supporters,

As Chair of Trustees, I write to you during a challenging time for Porchlight and the people we serve. The past year has been marked by significant obstacles, but also by our unwavering support for those in need.

In April 2023, we faced a devastating £1 million annual funding cut from Kent County Council, putting our vital supported accommodation services at risk. This funding ceased completely in March 2024, forcing us to scale back our homelessness prevention and recovery work, and reduce the support provided by our helpline.

Porchlight’s teams are therefore facing unprecedented challenges. It puts pressure on every area of activity and it is only through the dedication and professionalism of our staff and volunteers that we have been able to continue supporting the most vulnerable in our communities. Throughout the organisation, everyone has given their utmost to the cause, and we extend our heartfelt thanks to them.

Porchlight turns 50 this year, but we do not see it as a cause for celebration. Homelessness is at an all-time high, demand for mental health services continues to rise, and more people are being pushed into poverty. The average age of death for those living on the streets remains shockingly low at 45 for men and 43 for women.

200 staff and volunteers

£12.6m total income FY23-24

The housing crisis has intensified, trapping many in temporary accommodation. We've advocated for a compassionate approach to helping people experiencing homelessness and joined other organisations in urging the government to take action on this critical issue.

Despite these challenges, we remain committed to our mission. We're focused on repairing the safety net, from homelessness outreach to supporting those discharged from hospital to housing-led support for people to move into their own homes. We've also expanded our proven services for vulnerable young people and worked to address mental health inequalities.

As we look to the future, we're more determined than ever to fight for a fairer society. We need your support in maintaining our services and the wonderful staff who deliver them, each determined to make a difference to the lives of those who need it most.

Thank you for standing with us during these difficult times.

With kind regards

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Our work

Porchlight is a Kent-based charity supporting people experiencing issues related to poverty, health and housing; with a focus on homelessness, mental health and community development through local delivery programmes.

We provide a range of different services tailored to the needs of the local areas, working directly, and with local delivery partners across all 12 districts of Kent along with Medway and the London Borough of Bexley.

The people we support face varied issues and often experience multiple disadvantages; for example, homelessness or housing insecurity can often also involve personal experience of mental health problems or addictive behaviours.

We are there for people when it matters most; to help prevent problems from escalating, respond to more urgent need, as well as stay alongside them as they build the future they want.

A safe home, better life and fairer future for everyone.

Our services

Supported accommodation

Accommodation alongside support and supervision to help people live as independently as possible.

Housing first/housing led accommodation

Providing ‘own front door’ accommodation with a high level of support.

Live Well Kent & Medway

Community mental health and wellbeing service offering group/one-to-one support.

Mental health together (launched Aug 2024)

Planning a new integrated service model supporting people with complex mental health needs in partnership with Kent and Medway Partnership Trust (KMPT).

Homelessness outreach

Working with people who are street homeless and support maintaining their tenancy.

Pathways

Working with hospitals to prevent homelessness at the point of discharge from hospital care.

Porchlight Open Door (PODs) (Closed Dec 2024)

Community hubs to help people connect with local services and support networks.

Porchlight adolescent wellbeing service (PAWS)

One-to-one mental health support for younger people.

BeYou

Mental health support for LGBTQ+ younger people through youth groups and one-to-one support.

Spaces 2 connect

Working collaboratively with partners to better support people facing multiple disadvantages.

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Sector overview

Homelessness

The homelessness sector in England for the financial year April 2023 to March 2024 saw significant increases in various aspects of homelessness, reaching record levels in several categories.

Mental health

The mental health sector in England for the financial year April 2023 to March 2024 saw significant increases in demand and service utilisation, alongside some improvements in provision.

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Homelessness

A multifaceted challenge

Homelessness is a complex issue that requires tailored, person-centred support to help individuals recover and rebuild their lives. At Porchlight, we address these challenges through a range of innovative services, developed in collaboration with local councils, healthcare providers, and community partners.

Rough sleeping

Standard homelessness support often falls short for individuals with complex needs, such as trauma, severe mental health challenges, or addiction. Our dedicated outreach team works across Kent, providing life-saving interventions and connecting rough sleepers to essential services, particularly during extreme weather. This year, our rough sleeper team supported 237 people.

Tailored outreach includes specialised services for young people, women, and those with significant mental health needs. Partnerships with NHS mental health teams, drug and alcohol agencies, and local councils enable us to address the root causes of homelessness and create lasting change.

A new initiative with the NHS and the charity Pathway offers continued support for homeless hospital patients post-discharge, ensuring access to housing, mental health care, and financial guidance. This reduces readmission rates and relieves strain on healthcare staff.

944

people supported when they needed it most

28

people supported from hospital discharge

people supported away from street homelessness including rough sleeping and hospital discharge

279

Supported accommodation

Our supported accommodation services form the backbone of our approach to helping individuals transition out of homelessness. Beyond providing a safe, stable home, we deliver personalised support to address the underlying issues of homelessness.

Working with local authorities and partner organisations, we provide residents with access to mental health care, substance misuse treatment, skills training, and opportunities for community reintegration. For many, supported accommodation serves as a critical turning point, offering the foundation for long-term stability and independence.

Housing First schemes, developed in partnership with housing associations and local councils, provide people with immediate access to permanent housing without conditions for change. This proven model empowers individuals to recover at their own pace, supported by Porchlight staff. Stability allows them to reconnect with family, address underlying issues, and move towards independence.

Our specialised housing projects include Stepping Stones, supporting single women and women with children, and women-only properties designed for survivors of violence or abuse. These tailored accommodations offer safe spaces to heal and rebuild lives.

Preventing homelessness

Prevention is the most effective strategy for tackling homelessness. We work with individuals at risk, providing debt advice, financial guidance, and assistance with vital paperwork to keep them in their homes. However, funding cuts have limited this essential work, putting more people at risk of homelessness and its devastating effects.

of people at risk, supported to keep their home

92%

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The people we support

Case study: Housing-led

Case study: Mother & child

A homeless client who’d been the victim a of violent crime has undergone an amazing transformation, thanks to a specialist housing scheme we run with Tonbridge and Malling Borough Council.

A six-year-old was able to start back at school thanks to our homelessness housing programme for mothers and children which we run in partnership with London Borough of Bexley.

The scheme helps people who require a high level of support, and the man was experiencing post-traumatic stress disorder (PTSD) and it’s highly likely that he would have struggled with his mental health and wellbeing in a shared property.

After the mother had been assaulted, they moved into her parents’ home for safety. But the living situation was overcrowded, and eventually they were forced to move out. To prevent them becoming homeless, we moved the boy and his mother into our Bexley property.

He’s been given his own flat and will be allowed to recover at his own pace (while receiving support from Porchlight and other organisations).

It’s proven that if someone feels safe and included, they will – in their own time – start to recover and make positive choices about how they live their life.

He has gone from living in fear to feeling confident and regaining his independence. It’s a massive transformation, and we’ll continue supporting him while he rebuilds his life.

With somewhere suitable and stable to live, they began rebuilding their lives. We arranged for the mother to access support for anxiety and depression – the result of everything she’s been through recently. And because she’s a university student, we’ve helped her obtain a grant for parents in education.

We’re delighted to say that we’ve found them somewhere more permanent to live. Now, mother and son can return to university and school and build a better life and fairer future for themselves - all from the stability of a safe home.

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Mental health

Live Well Kent & Medway

Live Well Kent and Medway is a county-wide mental health and wellbeing support programme delivered on behalf of Kent County Council and the NHS by Porchlight, Shaw Trust, and a network of local delivery partners.

If you’re aged 16+ and live in Kent or Medway, our network of voluntary organisations and charities can help you:

4,800 people supported when they needed it most

67% had a common mental illness (CMI) and 26% had a serious mental illness (SMI)

Children & Young People

We work with children, young people and their families to support with their mental health and emotional wellbeing.

Porchlight adolescent wellbeing service

Help for young people (10-18) with mental health and wellbeing-related issues that are affecting their education, home life or relationships with family and friends.

We use CBT and DBT-informed approaches to support young people improve their mental wellbeing, become more confident and develop tools to help them navigate any similar issues in the future.

We can also help families improve relationships with the young person in their life and get support for other things that are affecting them (for example, housing problems, money and benefit worries).

The BeYou Project

A mental health and emotional wellbeing service for LGBTQ+ young people (aged 8 – 25) in Kent and Medway.

We run safe space meet-ups where they can be themselves and get emotional support around issues they are facing. We can also work with friends, parents, carers and schools, helping them understand how best to support young people.

752

young people supported with their mental health and wellbeing

90%

of LWKM clients maintained or improved their mental wellbeing

Annual Report & Accounts: 31 March 2024

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The people we support

Case study: Link work

The person we supported had experienced domestic abuse and harassment at their previous property and consequently were forced to leave their home, selfreferring after they were placed in temporary accommodation. They described the stressful nature of in-person meetings with the housing authority, where they felt they were being asked for information they could not provide, such as the details of their tenancy when living with their mother - one of their abusers. They wanted Live Well Kent and Medway to advocate for them, as they felt powerless.

The link worker advocated for the client with the Council, having to make multiple email queries and phone conversations with several housing officers. Over weekly in-person meetings with the client, the link service was able to untangle some of the confusion the client was experiencing over their housing situation.

Collaborating with colleagues from Porchlight Living Better service, we made a referral to an organisation for domestic abuse support, who provide a ten-week course of group therapy sessions for survivors of domestic abuse. The service was able to act as a liaison between the client and different support organisations.

The client has been receiving assistance from Victim Support at the time of the referral. The client had a pet cat who had been placed in a fostering service while they were living in the temporary accommodation, and it was clear that the welfare of the cat was a cause of great anxiety to the client.

The client experienced ADHD, anxiety, depression, agoraphobia, OCD, trauma, and panic attacks. At the time of the referral, the client was on the waiting list to be seen by a mental health nurse at their GP surgery. Given that the client had moved, they wanted support with accessing mental health services in that area.

I mpact of the service

The impact of the support provided by the service could be clearly seen at weekly meetings, they appeared happier and more hopeful. They were able to take on more responsibilities and are now confident that their housing situation will be resolved with a permanent safe home. The client is especially happy that they will be getting their cat back from fostering.

The link service played a pivotal role in helping them to manage their own wellbeing, bringing together key stakeholders and helping them to navigate working with multiple agencies.

The client described themselves as having a lot of unprocessed trauma from several incidents of domestic abuse at different times in their life.

How did the service support the client?

In the first instance, having met with the client, the service made a referral for talking therapy, however, unfortunately this was later rejected as the client’s needs were at that point deemed to be too high by the service. Working in partnership with the client’s GP, a referral to the Community Mental Health Team was made. The service was also proactive in making a direct referral to Mental Health Together team for the client.

The client is now accessing support from Mental Health Together team and has some time and space to focus on their mental health and on processing the trauma they have experienced. The housing situation is now largely resolved, and they are now in a position where they can focus on the domestic abuse support group work. The client is happy that now is the right time to address their trauma, being in a safe and supportive setting.

“I feel like I can breathe for the first time in weeks. Thank you to Porchlight for helping me through all of the chaos. It was so nice to have someone to talk to and work with during this time. I had been trying to communicate with big organisations for so long that it was nice to sit down with another human being who would listen to me.”

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Communities

Porchlight Open Door

Spaces 2 Connect

Our Porchlight Open Door meet-ups (PODs) were friendly get-togethers that help people to connect with the services and support networks that they need within their communities. They were funded until mid 2024.

Spaces 2 Connect is a programme that drives collaborative working with partners and local services to better support people facing multiple disadvantages, addressing their needs in a connected way.

People could get information and support about topics like housing, debt or benefits, try new activities or just have a cup of tea and a chat in a warm space.

We ran sessions to help people improve their health and wellbeing, cooking on a budget, fitness and mindfulness, along with employment and volunteering support - helping people see their strengths and connect with others to build the future they want.

Our Spaces 2 Connect groups in Margate and Canterbury work with local community leaders and the local authority to share knowledge and practical experience to overcome shared community challenges.

Throughout the programme, we work to improve people’s awareness of local services and their experience of accessing support, so that everyone can find the support that’s right for them.

483 community hub groups held

60

partner organisations attended, to provide better links to community services

333

Porchlight clients attended

5

workshops held; two by statutory organisations and three by VCSE partners

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The people we support

Case study

Case study

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Fundraising

Thanks to your support, we’re helping people experiencing multiple disadvantages across Kent.

We are so grateful for the generosity and kindness of our donors and supporters, who continue to help others even when times are tough.

While we remain endlessly inspired by the kindness of our donors, we are conscious not to be complacent during such financially turbulent times.

A key element of our fundraising strategy is to maintain and to grow the number of Porchlight supporters as well as to diversify the ways in which we can generate a foundation of sustainable income. This enables us to support an increasing number of people with complex needs and to be here for people when it matters most.

Donors to Porchlight can be confident that we comply with the regulatory standards for fundraising. We are registered with the Fundraising Regulator and are committed to the Fundraising Promise.

We adhere to the Code of Fundraising Practice which covers the requirements charities must follow as set out in the Charities Act 2011. All fundraising staff are members of the Chartered Institute of Fundraising. We have safeguards in place to protect our supporters and the reputation of our charity.

We ensure that all third parties have safeguarding measures in place too and we expect everyone to comply with the Code of Fundraising Practice. We take any concerns about our fundraising activities very seriously. Our complaints policy is featured on our website and clearly explains how people can make a complaint.

Our gift acceptance policy references from whom we will accept gifts and how we protect vulnerable people.

Across corporate and community income streams we have seen increased uptake of challenge events and we appointed an events manager to develop our events programme into the 2024-2025 financial year.

Our continued development of community engagement with local voluntary and community groups has led to greater awareness, understanding, and support from youth groups and schools.

This year, we received three complaints relating to fundraising communications, which were quickly resolved. We are also signed up to the Fundraising Preference Service to allow people to opt out of receiving fundraising communications from us but did not have to action any requests.

£1.42m Gifts & donations

£214k

£214k £62k Legacy Donated goods donations & services

Thank you to all of our donors and supporters who make sure that we’re here for people when it matters most and help create a safety net so everyone can find the support that’s right for them. Poverty, health and housing injustice are complex problems affecting millions of lives. They are also avoidable. Together, we fight for lasting change.

Annual Report & Accounts: 31 March 2024

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Your support

Thank you to all of the incredible people and organisations.

Porchlight undertakes fundraising activity via the support of community based fundraisers, applying to and partnering with companies and grant-giving trusts, direct mailings and appeals, and organising and offering places within challenge events.

Leave a legacy of hope with a gift in your Will

The seven gifts left in Wills to Porchlight this year raised over £213,676 of income which will have a powerful impact on future generations – enabling our teams to transform people's lives and create a fairer future.

Individual Giving

Our regular donors are vital for our financial sustainability with 190 signing up to give a regular gift this year.

Our appeals are also key fundraising moments for us during the year, raising £319,855, and helping us to attract 1088 new donors to support Porchlight.

Challenge events

76 brave individuals signed up to our challenge events during the course of the year. With the most popular of these events being CEO Sleepout held at Leeds Castle, raising £28,182. As well as marathons such as London Landmarks, Manchester and Guernsey.

Community fundraising

Our community fundraising team has been able to work with 67 schools across Kent, providing engaging content which has inspired and informed young people of the complex issues the people we support face.

Trusts and foundations

The investment in developing our trusts and foundations capacity has proven to be a financially sound decision with this year’s trust targets exceeded and over 50% of next year’s target secured.

Corporate fundraising

The business community of Kent continues to provide a substantial contribution towards improving the lives of Kent’s most vulnerable people with 145 corporate organisations supporting Porchlight in some way throughout the year.

The ways in which Porchlight continues to work in partnership with the corporate community grows in strength, including staff awareness and engagement through to training and development.

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Our people

Our workforce

Volunteers

Our workforce is at the heart of everything we do, and this year, we are proud to highlight the dedication, passion, and skill of our team members who make our mission possible. From paid employees to volunteers, each individual plays a vital role in supporting the people who need us most.

At the end of the year Porchlight employed 197 people working across client services and central support.

Our volunteers have a wide range of skills and expertise that support the work we do.

At the end of the year our volunteers gave 4,387 hours with 71 volunteers supporting us, including frontline volunteers supporting people sleeping rough to access services including supported accommodation and mental health services as well as administrators, social work placements and trustees .

We continue to focus on employee wellbeing and introduced a new wellbeing pathway for our workforce ensuring consistent steps of support are offered to our workforce as well as staff development and equality, diversity and inclusion through the implementation of a new learning management system.

Porchlight volunteer, Jacqui (below), spoke at the Women of Kent Luncheon about the positive impact:

“Volunteering has helped me develop so much as a person; I’ve been able to access lots of training to help me with my volunteering. I have learnt to be a kinder, more understanding person.”

197[employees]

4,387[volunteer hours]

71[volunteers]

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Structure & governance

Porchlight is limited by guarantee and is a registered charity. It is operated under the rules of its Memorandum and Articles of Association.

The Board of trustees

Porchlight is managed by the board of trustees which can make, repeal and amend regulations for any matter concerned with the administration of the affairs of the charity. The board has overall responsibility for the running of the charity and is responsible for:

Quality and safety group

The cross-directorate pillar groups report into the Quality and safety main group. The responsibilities are:

Leadership team (LT)

The LT has delegated responsibility from the board to run the charity on a day-to-day basis, including:

Senior management team (SMT)

The SMT is responsible for the management of our departments and services. They have responsibility for:

Key management personnel

Key management personnel are listed on page 2. The renumeration committee meets annually to ensure renumeration is competitive and affordable.

Appointment and recruitment

Porchlight undertakes an annual skills audit which informs a governance self assessment session. From this session, the Board creates a Governance Action Plan which includes consideration of priorities for trustee recruitment. Where gaps in skills and experience are identified, the Board advertise for new trustees and on occasion use recruitment firms to assist with the process. Recruitment and appointment is led by a specially convened Nominations Committee of a minimum of 3 trustees, supported by the CEO and Leadership Team. The Nominations Committee interview candidates and make recommendations which are ratified by the Board.

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Future outlook

As we reflect upon the 2023-2024 financial year and embark on our 50th anniversary year, it’s clear that the challenges facing our clients have never been greater; headlines around increased homelessness, unaffordable rent, poor quality housing, and a crisis in mental health care and resourcing.

Porchlight’s vision is of a safe home, better life and fairer future for everyone. Our skilled and experienced workforce strive every day to make a difference to the people we support and to enable them to have fair access to services and person-centred support that will enable them to live the life they want.

During the start of the 2024-2025 financial year, we developed our new five year strategy.

It introduces new initiatives, ways of working, connections and conversations – both internally and with external partners and supporters. It gives us new opportunities for training and development, partnership working, learning from best practice, and being involved in range of new projects.

The new strategy will help us work more closely with each other, increase trust and accountability, and make sure we're aligned in our purpose to deliver our mission.

Objectives: 2024-2029

Our five objectives set our priorities for the period April 2024 -March 2029.

The first three strategic objectives align with three key areas of inequality experienced by people we support:

The final two enabling objectives show how our focus on excellence and sustainability provide the foundation to deliver our mission.

People access a better and fairer system of 1 support.

People find the support that’s right for them when it matters most.

2

3 People are empowered to live the life they want and make lasting change. 4 Excellence in our services, people and systems. 5 A foundation of sustainable income and support.

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Trustees’ annual report

Financial review

Our income for the year was £12,601,880, a decrease of 10% on last year. Our expenditure was £13,071,610, a decrease of 2%. Our investment property valuation resulted in a loss on investments of £75,000. Our overall financial position for the financial year 2023-2024 was a deficit of £544,730 at 31 March 2024.

Income

This year, 72% of our income came from government grants (2023: 65%) and 13% from rental income within our properties (2023: 13%). However, our charity saw a total reduction of charitable activities income of £1,505,338 on the previous year.

Government grants are received for the provision of support within accommodation, floating support and outreach services, adolescent support services and mental health and wellbeing services. The remaining 15% of income was made up of voluntary income, funding from charitable trust and investment income; an increase of £133,143 on the previous year.

Expenditure

We spent £12,586,317 on our charitable activities supporting homeless, vulnerable and isolated people in Kent (2023: £12,940,464). Despite our reduction in income, there has been an increase in expenditure in almost all directorates. We spent £5,867,149 in Homelessness Services (2023: £5,601,134), £6,238,836 in Mental Health Services (2023: £5,845,647) and £480,331 in Communities (2023: £1,493,683). To be able to deliver the needed expenditure on services against the background of reduced funding, we put our investment property up for sale resulting in a net book value loss of £75,000 when we put it on the market for £325,000.

Our continued growth and long-term financial health depends on having the right resources in place to sustain our high level of contract acquisition and to satisfy commissioners that we have the operational scale and capability to deliver our promises.

Our people are key to delivering high quality services, their hard work and commitment to a fairer future for all helps us support the most vulnerable in society. As a result, our staffing costs equate to 48% of all expenditure. Our tangible fixed assets increased in 2024 as a result of investing £268,523 in capital expenditure and as a result of a generous legacy donation we were able to invest £295,242 in a property reserved for supporting women experiencing homelessness.

Reserves policy

At the end of the year, we held total funds of £4,003,639 (2023: £4,548,369).

Our reserves policy has always been focused on building our free reserves in order to allow us to continue our much-needed work in the event of a downtown income or an unforeseen increase in costs. Our policy has been to build our free reserves to cover six months’ unrestricted expenditure which is just over £5 million. However, in the face of both the cost of living crisis and the withdrawal of the Kent Homelessness Connect service, Porchlight’s trustees took the decision to designate a portion of our reserves to ensuring our vital homelessness services continue in some form. This has placed a significant burden on our reserves this year and will continue to do so in the next 12 months. As a result, we have designated £650,000 of our reserves to fund homelessness services in 2024-2025 and we have carried forward designated funds in women’s services and housing first. Designated funds totalled £723,509 (2023: £354,423) at year end. Restricted funds are only available for expenditure as directed by the donor or the funder. Restricted funds totalled £634,510 (2023: 687,356) at year end.

Porchlight’s Board of Trustees regularly review our financial position, including our reserves, to ensure that we can sustainably deliver our life changing services. This means balancing the need for healthy reserves with the need to provide these services. Following a restructure of Porchlight’s homelessness services, the focus is now shifting towards rebuilding reserves, a key priority for the board.

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Trustees’ annual report

Free reserves

Free reserves are for the general purposes of the charity, they are not restricted to or designated for a particular purpose and form part of our unrestricted income funds that are freely available after taking into account the designated funds that have been earmarked for specific purposes. The free reserves currently stand at £1,016,221 (2023: £2,274,622) and are calculated as follows:

Total unrestricted funds £3,369,129 Less designated funds (£723,509) Less unrestricted fixed assets (£1,629,399) Total free reserves £1,016,221

Going concern

Porchlight has drawn heavily on its reserves over the past two years, to ease the transition away from a supported housing model funded through Kent County Council contractual income, to a model funded through more localised support contracts.

This work is now complete, and whilst we expect to make a further loss of around £1.2m in 2024/25, we will return to generating modest surpluses from 2025/26. To strengthen our financial position, we have implemented a recovery plan to progressively build our free reserves by controlling our expenditure, cost-saving measures surrounding the restructure of our workforce and overheads, ensuring supported accommodation is financially viable and by continuing to diversify income. This is all balanced against the need to invest in our staff and buildings to deliver our charitable objectives.

Porchlight’s income comes from three sources: rents, contracts and fundraised income. Despite risks, which we continue to identify and monitor, we are confident in our ability to maintain our current income levels for each of these areas and will explore the potential to increase income in a sustainable fashion.

Porchlight provides 165 beds per night to people who would otherwise be homeless. We have undertaken extensive work to ensure that our rents are set at a level that makes our supported housing financially sustainable.

We conduct annual reviews of rent and eligible service charge levels, to ensure we are charging for full cost recovery and abiding by the relevant legislation. Increases taking into account these annual reviews of rent and eligible service charges have been submitted to the relevant local authorities and agreed or subject to final confirmation to take effect from 1 April 2025. In addition, we monitor arrears and bad debt to ensure that clients are given appropriate support to prevent arrears from increasing.

The Supported Housing (Regulatory Oversight) Act 2023 will introduce additional inspection and regulations onto supported housing. However, Porchlight is confident that this will not place undue burden on the charity or risk our rental income, as we have extensive quality assurance systems in place.

We have an excellent reputation for delivering quality services. This, combined with Government announcements of additional funding for both homelessness services and the NHS, means that we are confident of maintaining our income from contracts and have the potential to increase it, if the right opportunities present themselves.

Porchlight’s income from fundraising has steadily increased over the past few years and has consistently met or exceeded targets, due to the excellent work of our fundraising team. We are grateful for the on-going support from individuals, trusts and corporations.

To sustain this level of fundraised income, we will continue to invest in our fundraising team, develop existing fundraising streams and explore new ones, and create a new network of volunteers to support our fundraising activities and to engage with communities across Kent.

We have diligently executed extensive stress testing on our forecast models, ensuring their robustness and reliability. As a result of these thorough evaluations, we have confirmed our ability to remain cash positive throughout the forecast period.

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Trustees’ annual report

The main items of Porchlight’s expenditure are staffing, property and delivery partners. We are experiencing inflationary pressures which have had a significant impact on our ability to maintain and service our properties. The cost to Porchlight of employing staff will increase considerably in 2025, due to statutory changes including National Insurance rates and thresholds and increases in the minimum wage. These additional costs will be met through increased income from rents, (which have been agreed or subject to final confirmation with the relevant councils to take effect from 1 April 2025), renegotiating contracts and we will reduce our workforce by 10% in 2024/25.

In some cases, this will mean reviewing our services so that they, and Porchlight, are financially sustainable, ensuring that all commissioned services cover their direct costs and the central support costs required to deliver them. We are confident in our ability to understand and mitigate the economic risks and control expenditure.

They greatly value the strong relationship Porchlight has with its donors and philanthropists and thank them for their continued support as we navigate this period of transformation and change.

During the year, the Board considers the impact of scenarios (stress testing) on the financial plan. The Board considered the “worst case” impact of a decline in fundraising income and an increase in voids and bad debts and a “perfect storm” scenario whereby income for supported housing was insufficient to cover the cost of delivering a quality service. The Board considered mitigating actions including cost cutting measures and concluded that sufficient cash reserves remain available for at least the next 12 months.

Based on the review of these forecasts and the available cash reserves the Trustees have concluded the Charity is a going concern and accordingly have prepared the financial statements on this basis.

Porchlight has undertaken a review of our approach to asset management and has identified the potential for a more strategic approach which will reduce the costs of reactive and ad hoc repairs work by creating a 10-year asset management plan.

We do not imagine that this approach will reduce our expenditure on repairs and maintenance, as this is an area that has seen significant inflation in the costs of both labour and materials. However, we are confident that the combination of using a full cost recovery approach to our rent setting and adopting a more strategic approach to our asset management, will mean we can control expenditure in this area.

Porchlight’s Board, Finance Committee and Leadership Team meet regularly to review and agree financial controls, variance reports and budgets. Through these methods, Porchlight can exercise effective control and oversight of our financial position. They are committed to developing a robust cash flow and a strong balance sheet to provide a solid foundation for future growth and they are satisfied management have a resilient business model in place to deliver these objectives.

Investment policy

Our investment property is held for sale to support liquidity as we lean heavily on our reserves in the next 12 months. The asset is included in the balance sheet at fair value. The Trustees, with regard to the liquidity requirements of charity, did not reinvest our reserves in interest bearing accounts when they matured in November 2024.

Environmental impact

Porchlight continues to identify opportunities to improve our operational processes to contribute to environmental sustainability including:

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Trustees’ annual report

Key performance indicators

Our mitigation strategy has been to prepare various cash flow scenarios, excluding any unconfirmed funding, to ensure we can continue to meet our obligations when they fall due.

Operating surplus / deficit: overall deficit of £544,730.

Rent collected as a percentage of rent due:

Target: 94% Actual: 63.5%

Actual: 4.93%

Level of voids as a percentage of rental income:

Risk management

In order to strength our cash position we have held 2 properties for sale in the open market and anticipate these sales to be realised at the end of 2024/25 and early 2025/26. In addition, we have secured a short term loan in case unforeseen events place further burdens on our liquidity.

Reviewing our internal controls in line with Charity Commission guidance has been added to our governance framework and ensures we have oversight of cash flow at all layers of leadership within Porchlight. Our return to profitability via our robust financial recovery plan underpins our commitment to maintaining financial stability and long-term growth.

The Trustees review risks to the charity on an ongoing basis, ensuring that systems are in place to mitigate and manage the most severe risks. Currently the main risks to the charity are identified as:

----- Start of picture text -----
Porchlight’s 50th Anniversary installation of tents
illustrating client quotes
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Trustees’ annual report

Preparation of financial statements

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity’s governing document, the Charities Act 2011, the Companies Act 2006 and the Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ published in January 2019.

Statement of Trustees’ financial responsibilities

The charity Trustees, who are also the directors of Porchlight for the purposes of company law, are responsible for preparing a Trustees’ Annual Report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the charity Trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources. This includes the income and expenditure of the charitable company for that period. In preparing financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006.

They are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of information to Auditor

The Trustees who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditor is unaware.

Each of the Trustees has confirmed that they have taken all steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

Auditor

RSM UK Audit LLP have expressed their willingness to continue in office.

Their report and incorporated strategic report was approved by the Board of Trustees on 26 March 2025 and signed on its behalf by

Patrick Fuller, Chair of trustees

24

Annual Report & Accounts: 31 March 2024 Porchlight.org.uk Independent auditor’s report

Opinion

We have audited the financial statements of Porchlight (the ‘charitable company’) for the year ended 31 March 2024 which comprise the Statement of Financial Activities (including the Summary Income and Expenditure Account), the Balance Sheet, the 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 FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

Other information

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

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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Annual Report & Accounts: 31 March 2024 Porchlight.org.uk Independent auditor’s report

Opinions on other matters prescribed by the

Companies Act 2006

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

Matters on which we are required to report by exception

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

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ responsibilities set out on page 23, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected noncompliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

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Annual Report & Accounts: 31 March 2024 Porchlight.org.uk Independent auditor’s report

However, it is the primary responsibility of

management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, The Charities (Protection and Social Investment) Act 2016, Charities Act 2011 and the charitable company’s governing document. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report and remaining alert to new or unusual transactions which may not be in accordance with the governing documents.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to health and safety, tenancy laws and safeguarding. We performed audit procedures to inquire of management whether the charitable company is in compliance with these law and regulations.

The audit engagement team identified the risk of� management override of controls and existence, cut-off� and completeness of revenue as the areas where the� financial statements were most susceptible to material� misstatement due to fraud. Audit procedures performed� included but were not limited to testing manual journal� entries and other adjustments, evaluating the business� rationale in relation to significant, unusual transactions� and transactions entered into outside the normal course� of business, challenging judgments and estimates and� testing on revenue.

A further description of our responsibilities for the audit� of the financial statements is located on the Financial� Reporting Council’s website at

frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

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

Zoe Longstaff-Tyrrell (Senior Statutory Auditor) For and on behalf of RSM UK AUDIT LLP, Statutory Auditor

Chartered Accountants

Portland 25 High Street Crawley West Sussex RH10 1BG

Date 27 March 2025

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Financial statements

Porchlight Statement of Financial Activities (including Income & Expenditure Account) for the year ended 31 March 2024

Note
Income:
Donations and legacies
2
Charitable activities
3
Trading income
Investment income
4
Total income
Expenditure:
Raising funds
5
Charitable activities
6
Total expenditure
Net (loss)/gains on
investments
Net (expenditure) / income
Transfers between funds
15
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted Funds
Restricted Funds
Total Funds
Total Funds
2024
2024
2024
2023
£
£
£
£
1,227,642
570,098
1,797,740
1,690,395
7,934,880
2,811,509
10,746,389
12,251,727
16,795
-
16,795
19,444
40,956
-
40,956
12,509
9,220,273
3,381,607
12,601,880
13,974,075
478,858
6,435
485,293
388,402
9,558,299
3,028,018
12,586,317
12,940,464
10,037,157
3,034,453
13,071,610
13,328,866
-
(75,000)
(75,000)
5,149
(816,884)
272,154
(544,730)
650,358
325,000
(325,000)
-
-
(491,884)
(52,846)
(544,730)
650,358
3,861,013
687,356
4,548,369
3,898,011
3,369,129
634,510
4,003,639
4,548,369

The notes on pages 30 to 40 form part of these financial statements.

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Balance sheet

Porchlight Balance Sheet for the year ended 31 March 2024

Note
Fixed assets
Tangible assets
9
Investment property
10
Current assets
Property held for sale
11
Debtors
12
Cash at bank and in hand
Liabilities
Creditors: Amounts falling due within one year
13
Net current assets
Total net assets
The funds of the charity
Restricted income funds
15
Unrestricted funds
15
Total charity funds		 2024
£
1,793,366
-		 2023
£
1,397,617
400,000
1,793,366
325,000
1,953,726
1,622,696
3,901,422
(1,691,149)
2,210,273
4,003,639
634,510
3,369,129		 1,797,617
-
2,080,053
2,258,638
4,338,691
(1,587,939)
2,750,752
4,548,369
687,356
3,861,013
4,003,639 4,548,369

Company number: 01157482

The financial statements on pages 27 to 40 were approved and authorised for issue by the board of trustees on 26 March 2025 and signed on their behalf by:

Stephanie Goad, Trustee

Patrick Fuller, Trustee

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Statement of cash flows

Note
Cash provided by operating activities
A
Cash flows from investing activities
Income from investments
Proceeds from the sale of fixed assets
Purchase of fixed assets
Cash (used)/provided in investing activities
Cash flows from financing activities
Repayments of borrowing
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
B
Total cash and cash equivalents at the end of the year
B
Note A: Reconciliation of net income to net cash flow from
operating activities
Net (expenditure)/income for the year (as per the
statement of financial activities)
Adjustments for:
Depreciation charges
Loss/(gain) on investments
Income from investments
Profit on sale of fixed assets
Decrease in debtors
Increase/(decrease) in creditors
Net cash provided by operating activities
Note B: Analysis of cash and cash equivalents
Cash in hand
Note C: Analysis of change in net debt
At 1 Apr 2023
Cashflows
Cash and cash equivalents
2,258,638
(635,942)
Porchlight Statement of cash flows
for the year ended 31 March 2024		 Total Funds 2024
Total Funds 2023
£
£
(133,733)
139,047
40,956
12,509
20,600
240,483
(563,765)
(87,448)
(502,209)
165,544
-
(601,937)
-
(601,937)
(635,942)
(297,346)
2,258,638
2,555,984
1,622,696
2,258,638
2024
2023
£
£
(544,730)
650,358
155,475
120,454
75,000
(5,149)
(40,956)
(12,509)
(8,059)
(31,206)
126,327
45,981
103,210
(628,882)
(133,733)
139,047
2024
2023
£
£
1,622,696
2,258,638
Non-cash changes
At 31 Mar 2024
-
1,622,696

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Notes to the accounts for the year ended 31 March 2024

1. Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are set out below.

1.1 Basis of preparation

The financial statements have been prepared in accordance with the historical cost convention, modified to include investment properties at fair value, and in accordance with the Statement of Recommended Practice - Accounting and Reporting by Charities (SORP 2015) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Ireland (FRS 102) (effective 1 January 2019) and the Companies Act 2006. Porchlight meets the definition of a public benefit entity under FRS 102.

Income from interest on deposits is recognised when its receipt is probable and the amount can be measured reliably; this is normally upon notification or payment by the bank.

Donated Goods and Services are included as income where it would otherwise have been purchased. Amounts are included when received, at the value of the cost of purchasing the goods or service outright on the open market.

1.4 Expenditure and irrecoverable VAT

All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities.

Expenditure on raising funds comprise the costs associated with attracting income from donations and legacies, together with investment costs.

1.2 Preparation of the accounts on a going concern basis

The financial statements have been prepared on a going concern basis. The Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements including taking into account agreed rental income increases to take effect from 1 April 2025.

The trustees have concluded that sufficient cash reserves remain available for at least the next 12 months for the Company to be able to continue as a going concern.

1.3 Income

Income is recognised when the charity has legal entitlement to the funds, any performance conditions attached to the items are met, it is probable that the income will be received and it can be measured reliably.

Donations are included as income when the cash becomes receivable. For legacies, entitlement is taken when there has been grant of probate, the executors have established that there are sufficient net assets in the estate to pay the legacy and any conditions attached to the legacy have been met. Income from government and other grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be reliably measured. Where grants are received in advance, amounts are deferred at the year end as necessary.

Expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities. Support costs include central functions such as governance, finance, administration, human resources etc and have been allocated to activities on the basis of the direct expenditure of the activities.

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

1.5 Termination Benefits

Termination benefits are payable when employment is terminated before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The charity recogniseas termination benefits when it is demonstrably committed to either (i) terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or (ii) providing termination benefits as a result of an offer made to encourage voluntary redundancy.

1.6 Pensions

The charity operates a defined contribution pension scheme. The expenses and any liability are allocated to the activity within the staff costs for that activity, similarly allocated to restricted or unrestricted based on the relevant staff costs for that fund.

Other trading activities relate to income in exchange for goods or services sold, at equal value. Income is recognised when the charity has entitlement to the funds and they can be reliably measured, normally upon receipt.

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Notes to the accounts for the year ended 31 March 2024

1.7 Tangible Fixed Assets

Individual fixed assets costing £1,000 or more are capitalised at cost.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

A full year of depreciation is charged in the year of acquisition, and none in the year of disposal.

1.8 Fixed Asset Investments

Investment properties are included in the balance sheet at their open market value. No depreciation is provided on the properties. Net gains and losses on disposal and revaluation of investments are charged or credited to the Statement of Financial Activity (SOFA).

1.13 Financial Instruments

The Company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102, in full, to all of its financial instruments.

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument, and are offset only when the Company currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial Assets

Grants receivable and other debtors (including accrued income) which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

1.9 Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a maturity of less than three months from the date of deposit.

1.10 Accrued Holiday Pay

Provision is made at the balance sheet date for holidays accrued but not taken, at the salary of the relevant employee at that date. The expected cost of compensated short-term absence (i.e holidays) is charged to the SOFA on an accruals basis.

1.11 Fund Accounting

1.12 Operating Leases

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the SOFA as incurred.

Financial Liabilities

Other creditors (including accruals) payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being transaction price less any amounts settled.

1.14 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Valuation of Investment Property

The carrying value of the investment property is stated at fair value. The charity uses a third party valuer for determining the fair value as detailed in note 10 to these financial statements, however, the valuation of the charity's investment property is inherently subjective, as it is made on the basis of valuation assumptions which may in future not prove to be accurate.

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Notes to the accounts

2. Donations and legacies
Gifts and donations
Legacies
General grants
Donated goods and services
Total
Prior year
Gifts and donations
Legacies
General grants
Donated goods and services
Total		 Unrestricted funds 2024
£
1,059,382
106,198
500
61,562		 Restricted funds 2024
£
365,320
107,478
97,300
-		 Total funds 2024
£
1,424,702
213,676
97,800
61,562
1,227,642
Unrestricted funds
2023
£
1,120,109
401,517
15,750
55,200
1,592,576		 570,098
Restricted funds
2023
£
87,819
-
10,000
-
97,819		 1,797,740
Total funds
2023
£
1,207,928
401,517
25,750
55,200
1,690,395

Donated goods and services relates to the use of conference centres and software licences at no or little cost to the charity. The value included is that of acquiring those services at the full open market cost.

3. Charitable activities
Homelessness services
Rent / Accommodation charges
Kent County Council
Local Authority grants
Student placement fees
NHS grants
Other grants receivable
Mental health services
Kent County Council
NHS grants
Other grants receivable
Communities
European Social Fund income
Big Lottery Fund
Sundry income
Total		 Unrestricted funds 2024
£
1,703,744
1,386,585
150,000
3,920
-
38		 Restricted funds 2024
Total funds 2024
£
£
-
1,703,744
-
1,386,585
1,451,215
1,601,215
-
3,920
39,448
39,448
135,105
135,143
3,244,287
4,119,010
559,118
-
4,678,128
12,280
-
185
12,465		 1,625,768
4,870,055
85,436
4,204,446
890,429
1,449,547
23,079
23,079
998,944
5,677,072
59,056
71,336
127,741
127,741
-
185
186,797
199,262
7,934,880 2,811,509
10,746,389

Annual Report & Accounts: 31 March 2024

Porchlight.org.uk

33

Notes to the accounts

3. Charitable activities (continued)
Unrestricted funds 2023
Restricted funds 2023
Total funds 2023
£
£
£
Homelessness services
Rent / Accommodation charges
1,627,565
-
1,627,565
Kent County Council
2,495,855
135,672
2,631,527
ICB Income
-
8,367
8,367
Local Authority grants
150,000
854,296
1,004,296
Delivery network income
84,190
-
84,190
Other grants receivable
-
53,747
53,747
4,357,610
1,052,082
5,409,692
Mental health services
Kent County Council
3,393,219
51,740
3,444,959
ICB Income
596,072
1,367,529
1,963,601
Delivery network income
-
220,211
220,211
Other grants receivable
-
27,503
27,503
3,989,291
1,666,983
5,656,274
Communities
European Social Fund income
58,205
929,829
988,034
Local Authority grants
-
17,908
17,908
Big Lottery Fund
-
157,973
157,973
RBLI income
-
21,846
21,846
58,205
1,127,556
1,185,761
Total
8,405,106
3,846,621
12,251,727
Government grants are received for the provision of support within accommodation, floating support and outreach services, adolescent support
ervices and mental health and wellbeing services.
Government grants received during the year totalled £8,682,241 (2023: £9,070,658).
here were no unfulfilled conditions attached to government grants recognised in the year (2023: None).
4. Investment income
Unrestricted funds 2024
Unrestricted funds 2023
£
£
Rental income from investment property
12,100
12,470
Bank interest
28,856
39
Total
40,956
12,509
5. Raising funds
Unrestricted Funds
Restricted Funds
Total Funds
Total Funds
2024
2024
2024
2023
£
£
£
£
Expenditure on raising donations and
legacies
478,858
6,435
485,293
388,402
Total
478,858
6,435
485,293
388,402		 Unrestricted funds 2023
£
1,627,565
2,495,855
-
150,000
84,190
-		 Restricted funds 2023
£
-
135,672
8,367
854,296
-
53,747		 Total funds 2023
£
1,627,565
2,631,527
8,367
1,004,296
84,190
53,747
4,357,610
3,393,219
596,072
-
-
3,989,291
58,205
-
-
-
58,205		 1,052,082
51,740
1,367,529
220,211
27,503
1,666,983
929,829
17,908
157,973
21,846
1,127,556		 5,409,692
3,444,959
1,963,601
220,211
27,503
5,656,274
988,034
17,908
157,973
21,846
1,185,761
478,858
6,435
485,293
388,402

Government grants are received for the provision of support within accommodation, floating support and outreach services, adolescent support services and mental health and wellbeing services.

Government grants received during the year totalled £8,682,241 (2023: £9,070,658).

There were no unfulfilled conditions attached to government grants recognised in the year (2023: None).

Annual Report & Accounts: 31 March 2024

Porchlight.org.uk

34

Notes to the accounts

6. Charitable activities
Activities undertaken directly
Staff costs
Premises costs
Delivery network fees
Office costs
Tenant welfare fund
Sundry expenses
Support costs
Governance
Management & administration
Finance
Human resources
Communications
Total		 Homelessness services
Mental health services
Communities
Total 2024
£
£
£
£
2,339,362
2,207,914
351,298
4,898,574
1,684,742
154,384
34,157
1,873,283
516,988
2,692,927
-
3,209,915
127,601
71,315
8,225
207,141
105,890
36,226
10,377
152,493
2,321
1,112
891
4,324
4,776,904
5,163,877
404,948
10,345,730
56,395
60,966
4,781
122,142
237,890
233,321
16,245
487,456
277,538
272,208
18,953
568,699
161,587
158,483
11,035
331,105
356,835
349,981
24,369
731,185
1,090,245
1,074,959
75,383
2,240,587
5,867,149
6,238,836
480,331
12,586,317

All support costs are apportioned on the basis of unrestricted direct expenditure.

Expenditure on charitable activities was £12,586,317 (2023: £12,940,464), of which £9,558,299 (2023: £8,844,663) was unrestricted and £3,028,018 (2023: £4,095,801) was restricted.

Within governance costs is Directors' and Officers' Insurance at a cost of £10,696 (2023: £7,897).

6. Charitable activities (continued)
6. Charitable activities (continued)
Prior year
Activities undertaken directly
Staff costs
Premises costs
Delivery network fees
Office costs
Tenant welfare fund
Sundry expenses
Support costs
Governance
Management & administration
Finance
Human resouces
Communications
Total		 Homelessness services
Mental health services
Communities
Total 2023
£
£
£
£
2,848,038
2,509,404
758,424
6,115,866
1,425,733
109,261
39,310
1,574,304
543,494
2,444,330
439,082
3,426,906
133,652
90,599
13,241
237,492
115,071
42,737
102,141
259,949
2,277
1,076
434
3,787
5,068,265
5,197,407
1,352,632
11,618,304
24,401
25,023
6,512
55,936
117,779
144,359
31,164
293,302
131,634
161,341
34,830
327,805
77,613
95,128
20,536
193,277
181,442
222,389
48,009
451,840
532,869
648,240
141,051
1,322,160
5,601,134
5,845,647
1,493,683
12,940,464

Annual Report & Accounts: 31 March 2024

Porchlight.org.uk

35

Notes to the accounts

7. Analysis of staff costs
Salaries and wages
Social security costs
Pension costs
Total		 2024
£
5,676,197
516,995
271,710
6,464,902		 2023
£
5,910,629
559,002
278,642
6,748,273

Included in pension costs above is an amount of £48,507 (2023: £71,145) relating to restricted expenditure. Pension contributions of £41,294 (2023: £41,014) were payable at the year end.

Redundancy payments totalling £116,328 (2023: £10,812) were made in the year (There were no amounts outstanding at the year end, 2023: £10,812).

The number of employees whose emoluments fell within the following bands were:

2024 2023
£70,001 - £80,000 1 -
£120,001 - £130,000 - 1
£200,001 - £220,000 1 -

The trustees did not receive any remuneration, benefits in kind and were not reimbursed for travel expenses in either year.

The key management personnel of the charity comprise the trustees and the Leadership Team. The total amount of employee benefits of the key management personnel was £644,160 (2023: £444,434). During the year one new staff loan was paid to key management personnel totalling £1,000 (2023: £500), no amounts were outstanding at the year end.

The average number of employees during the year was as follows:

Homelessness Services
Mental Health Services
Communities
Management & Administration
Total		 2024
Number
79
68
12
40
199		 2023
Number
87
75
23
34
219
8. Movement in total funds for the year 2024 2023
£ £
This is stated after charging:
Operating leases 221,479 333,959
Depreciation 155,476 120,454
Profit on disposal of fixed assets 8,059 31,206
Auditor's remuneration for statutory audit 27,500 24,000

Annual Report & Accounts: 31 March 2024

Porchlight.org.uk

36

Notes to the accounts

9. Tangible fixed assets
Cost
At 1 April 2023
Additions
Disposals
At 31 March 2024
Depreciation
At 1 April 2023
Charge for the year
Disposals
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023		 Freehold Property
Leasehold Property
Fixtures, fittings and
equipment
Total
£
£
£
£
879,088
610,999
731,333
2,221,420
295,242
-
268,523
563,765
-
-
(50,165)
(50,165)
1,174,330
610,999
949,691
2,735,020
37,214
211,347
575,242
823,803
14,087
4,167
137,221
155,475
-
-
(37,624)
(37,624)
51,031
215,514
674,839
941,654
1,123,029
395,485
274,852
1,793,366
841,874
399,652
156,091
1,397,617

Included in freehold property above is land at a value of £351,635 (2023: £351,635) which is not depreciated.

10. Investment Property
Fair value
At 1 April 2023
Transfer to property held for sale (note 11)
At 31 March 2024		 Total
£
400,000
(400,000)
-
11. Property held for sale Total
£
Net book value of property held for sale 325,000

During the year, the Trustees made the decision to sell the Charity's investment property in Deal. As the sale is virtually certain, a transfer has been made between non-current assets and current assets at the value it has been listed for sale. The donor released the restriction attached to this property and therefore it has been transferred to unrestricted funds.

Annual Report & Accounts: 31 March 2024

Porchlight.org.uk

37

Notes to the accounts

12. Debtors

13. Creditors - amounts falling due within one year
Trade creditors
Other creditors
Other taxes and social security costs
Accruals and deferred income
Total
Deferred income:
Brought forward
New amounts deferred
Released to SOFA
Total
12. Debtors
Other debtors
Grants receivable
Prepayments and accrued income
Total		 2024
£
770,588
25,662
121,084
773,815
1,691,149
2024
£
581,711
896,697
(912,652)
565,756
2024
£
306,597
1,151,163
495,966
1,953,726		 2023
£
425,740
1,374,978
279,335
2,080,053
2023
£
559,441
59,486
116,550
852,462
1,587,939
2023
£
1,291,802
370,598
(1,080,689)
581,711

Deferred income relates to grants received in advance, where the period exceeds the year end.

14. Financial instruments 2024 2023
£ £
Financial assets measured at fair value 325,000 400,000

Annual Report & Accounts: 31 March 2024

Porchlight.org.uk

38

Notes to the accounts

15. Analysis of charity funds

15. Analysis of charity funds
Restricted funds
New Town Street Building fund
Homelessness Services
Mental Health Services
Communities
Investment Property
Total Restricted funds
Restricted funds
New Town Street Building fund
Homelessness Services
Mental Health Services
Communities
Investment Property
Total Restricted funds		 Balance at
1 Apr 23
Income
Expenditure
Transfer
Balance at
31 Mar 24
£
£
£
£
£
165,649
-
(1,682)
-
163,967
18,925
2,149,731
(1,803,281)
-
365,375
102,782
1,035,913
(1,033,526)
-
105,169
-
195,963
(195,964)
-
-
400,000
-
(75,000)
(325,000)
-
687,356
3,381,607
(3,109,453)
(325,000)
634,510
Balance at
1 Apr 22
Income
Expenditure
Transfer
Balance at
31 Mar 23
£
£
£
£
£
167,331
-
(1,682)
165,649
45,713
1,143,250
(1,170,038)
-
18,925
225,673
1,673,573
(1,796,464)
-
102,782
-
1,127,617
(1,127,617)
-
-
394,851
5,149
-
-
400,000
833,568
3,949,589
(4,095,801)
-
687,356

The New Town Street Building fund was created by donations and grants received in 1996/97 to build the property on land provided by Kent County Council on a 125-year lease. This fund is being written off over the life of the lease.

The remaining restricted funds relate to restricted grants and donations for mental health services, Outreach services, activities and the corresponding expenditure.

For details of the investment property fund transfer see note 10 and 11.

Unrestricted funds
General unrestricted fund
Designated funds
Total Unrestricted funds
Unrestricted funds
General unrestricted fund
Designated funds
Total Unrestricted funds		 Balance at
1 Apr 23
Income
Expenditure
Transfer
Balance at
31 Mar 24
£
£
£
£
£
3,506,590
9,220,273
(9,756,243)
(325,000)
2,645,620
354,423
-
(280,914)
650,000
723,509
3,861,013
9,220,273
(10,037,157)
325,000
3,369,129
Balance at
1 Apr 22
Income
Expenditure
Transfer
Balance at
31 Mar 23
£
£
£
£
£
2,824,828
9,759,721
(9,077,959)
-
3,506,590
239,615
269,914
(155,106)
-
354,423
3,064,443
10,029,635
(9,233,065)
-
3,861,013

Designated funds relate to monies set aside for Housing First, Women’s Needs services, as well as £650,000 for the Homelessness service as per explanation on page 19.

Annual Report & Accounts: 31 March 2024

Porchlight.org.uk

39

Notes to the accounts

15. Analysis of charity funds (continued)

Summary of funds
Restricted funds
Unrestricted funds
Total funds
Summary of funds
Restricted funds
Unrestricted funds
Total funds		 Balance at
1 Apr 23
Income
Expenditure
Transfer
Balance at
31 Mar 24
£
£
£
£
£
687,356
3,381,607
(3,109,453)
(325,000)
634,510
3,861,013
9,220,273
(10,037,157)
325,000
3,369,129
4,548,369
12,601,880
(13,146,610)
-
4,003,639
Balance at
1 Apr 22
Income
Expenditure
Transfer
Balance at
31 Mar 23
£
£
£
£
£
833,568
3,949,589
(4,095,801)
-
687,356
3,064,443
10,029,635
(9,233,065)
-
3,861,013
3,898,011
13,979,224
(13,328,866)
-
4,548,369
16. Analysis of net assets between
funds
Fixed assets
Net current assets
Total
Fixed assets
Net current assets
Total		 Unrestricted funds 2024
£
1,629,399
1,739,730
3,369,129
Unrestricted funds 2023
£
1,231,968
2,629,045
3,861,013		 Restricted funds 2024
£
163,967
470,543
634,510
Restricted funds 2023
£
565,649
121,707
687,356		 Total funds 2024
£
1,793,366
2,210,273
4,003,639
Total funds 2023
£
1,797,617
2,750,752
4,548,369

Annual Report & Accounts: 31 March 2024

Porchlight.org.uk

40

Notes to the accounts

17. Operating lease commitment

The total future minimum lease payments under non-cancellable operating leases are as follows:

Due within one year
Between one and five years
After five years
Total		 2024
£
156,936
361,937
132,000
650,873		 2023
£
222,878
445,474
204,000
872,352

18. Taxation

Porchlight is a registered charity and as such its income and gains falling within Sections 471 to 489 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 are exempt from corporation tax to the extent that they are applied to its charitable objectives.

19. Related Party Transactions

Aggregate donations of £1,775 (2023: £2,763) were received from the trustees during the year.

20. Post balance sheet events

In December 2024, Porchlight received a legacy of two properties. No value has been provided on these properties in these financial statements and recognition of the value of this legacy will be accounted for in the year to 31 March 2025.

Contracts have been exchanged on 26 March 2025 in respect of the investment property held for sale.

Annual Report & Accounts: 31 March 2024

Porchlight.org.uk

41

Get in touch, get involved

Get in touch with us

Get involved

If you're a member of the public with a general query:

Porchlight head office 18-19 Watling Street Canterbury, CT1 2UA

Telephone: 01227 760078 Email: headoffice@porchlight.org.uk

There are many ways to get involved in our work including volunteering, attending one of our fundraising events, organising your own fundraising event, corporate partnerships, donating, or leaving a legacy gift in your Will. Contact us for information about opportunities in your area,

Give

Get help and support

If you have housing and homelessness concerns

Our team will find out more about your situation and help you access support - whether that's with Porchlight or another organisation.

Cheques : Please make any cheques payable to 'Porchlight'. These can be posted to our head office: FAO Fundraising, Porchlight, 18-19 Watling Street, Canterbury, Kent, CT1 2UA. Please include your name, address and any other relevant information with your cheque, so that we can thank you for your generous donation.

Online : If you'd prefer to donate online, please visit: www.porchlight.org.uk/donate

If you have mental health concerns

Our mental health line is a gateway to a range of support - from Porchlight and other organisations - to do with housing, mental health, employment, money and benefits, feelings of loneliness and isolation.

Call 0800 567 7699 (Lines are open Monday to Friday,

Telephone : If you prefer to donate over the phone please call us on 01227 813199.

Donating goods or services

Unfortunately we do not have the capacity to accept donations. Please contact for advice on donating goods or services by emailing getinvolved@porchlight.org.uk

Email info@livewellkent.org.uk

----- Start of picture text -----
Porchlight’s 50th Anniversary
installation of tents illustrating
client quotes
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Registered Charity Number: 267116 Porchlight Limited is a registered company in England and Wales Registered Company Number: 01157482 Registered Office: 2nd Floor Watling Chambers, 18‑19 Watling Street, Canterbury, Kent. CT1 2UA

----- Start of picture text -----
Porchlight is a limited company registered in England and Wales. headoffice@porchlight.org.uk
Registered company No: 01157482. Registered charity No: 267116. 01227 760078 Porchlight.org.uk
----- End of picture text -----