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2025-03-31-accounts

Annual Report and Financial Statements for the Year Ended 31 March 2025

European Outreach Trust

Charity registration number: 278068

Independent Examiners Ltd The Grain Store Hills Barns Appledram Lane South Chichester West Sussex PO20 7EG

EUROPEAN OUTREACH TRUST

CONTENTS

Reference and Administrative Details 1
Trustees' Report 2 to 5
Independent Examiner's Report 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Financial Statements 9 to 17

EUROPEAN OUTREACH TRUST

REFERENCE AND ADMINISTRATIVE DETAILS

Trustees Jean Barbara Brendan Lynch (resigned 23 January 2025) Andrew Pettman Antoine Laureys Desmond Dick Principal Office 31 Lynton Road London W3 9HL Charity Registration 278068 Number Independent Examiner G W Schulz FCMA Independent Examiners Ltd The Grain Store Hills Barns Appledram Lane South Chichester West Sussex PO20 7EG Solicitors Lewis & Dick 443 Kingston Road Ewell Surrey KT19 0DG Bankers Lloyds Bank PLC London W4 1NS PNC Bank Michigan USA Administrators Richard Perry ACA Jean Pierre Fahed

Page 1

EUROPEAN OUTREACH TRUST

TRUSTEES' REPORT

The trustees present the annual report together with the financial statements of the charity for the year ended 31 March 2025.

Objectives and activities

Objects and aims

The primary object of the charity is the advancement of the Christian faith, which it does through the Sword of the Spirit, an international network of ecumenical Christian communities. These communities engage in pastoral and evangelistic work, in the provision of public worship, and in cooperating with one another in pursuing their compatible aims.

Objectives, strategies and activities

The charity works principally with the leaders of the Sword of the Spirit and its member communities, equipping them to support, train, teach and pastor members of their communities, to reach out beyond their communities to the broader public and share with them the Christian gospel and way of life, and equipping community members to be good neighbours and good citizens, doing good works as an expression of their Christian faith.

Public benefit

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales, including the guidance on advancement of religion.

Relationships with other charities and grants policy

The charity works closely with the Servants of the Word Trust (a registered charity in England and Wales) and the Sword of the Spirit Incorporated (a non-profit corporation in Michigan USA). With both of them it shares similar objects and to/from both it makes and receives grants in furtherance of those objects. The three charities cooperate on a number of joint projects, and the trustees consider that this cooperation greatly enhances the ability of this charity to further its charitable objects.

Structure, governance and management

Nature of governing document

The charity was established by trust deed on 23 April 1979 and commenced operating on that date.

Recruitment and appointment of trustees

The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed.

Page 2

EUROPEAN OUTREACH TRUST

TRUSTEES' REPORT (CONTINUED)

Organisational structure

The charity is governed by its trustees. The Sword of the Spirit is governed internationally by an Assembly and an International Executive Council, and in Europe by a European Zonal Council; these bodies are made up of the senior leaders internationally, regionally and from each local member community. Day to day responsibility for the charity's financial affairs is vested in the administrators who meet regularly with the trustees and are accountable to them. The board of trustees follows the principles of the Charity Governance Code for smaller charities.

Achievements and performance

The charity's work continued in the following five principal areas:-

In each of these areas there are teams of people, both paid staff and volunteers, who lead and coordinate the work and draw in others to help them do the work.

Community building: we work with those communities still in formation, and help support the other communities who have completed their formation and are now full members in the Sword of the Spirit; we provide outside input, counsel and pastoral support to local leaders, through visits by individual regional leaders, and by teams of leaders and members from other local communities.

Youth and young adults: we work with teenagers, students, young professionals, and those who lead the various youth and student groups in our local communities; we provide training, resources, and organise or facilitate residential retreats and mission trips.

Mission development: we network with other Christian groups, and particularly work with other Christian communities, some of whom wish to investigate joining the Sword of the Spirit; we have a focus on ecumenical ventures that promote cooperation and understanding between different Christian churches and traditions.

Leadership training: we provide a programme of training to leaders of local communities, through an annual Pastoral Teaching Institute in the region, as well as training weekends for pastoral leaders, youth leaders, missionaries and teachers.

International governance: the charity is responsible for the financial activities of the International Executive Council of the Sword of the Spirit. The IEC's principal function is to oversee and coordinate the work of the Sword of the Spirit internationally, and most of its expenditure is on personnel and meetings for that purpose.

Page 3

EUROPEAN OUTREACH TRUST

TRUSTEES' REPORT (CONTINUED)

Financial review

Policy on reserves

The 'free' reserves are held for the following purposes:-

• to fund working capital requirements, which the trustees consider to be £29,000; • to provide a buffer in case of any unexpected deterioration in income or unexpected expense, for which the trustees use £150,000 which is 50% of income from the largest income source and 50% of salary costs for the highest paid employee for each of the EME Region and the European Zone, plus six months of IEC general expenditure;

• to fund new opportunities for growth, for the which the trustees' target is a range from £0 to £60,000 for European activities and from £50,000 to £150,000 for international activities; and

• to cover planned deficits in the near future, which the trustees expect to be £150,000 over the next five financial years.

Policy on investments

The charity invests some of its reserves in interest-bearing deposit accounts in order to generate more income to be used for its charitable purposes and to make use of the Financial Services Compensation Scheme protections.

Authority to oversee and manage these investments is delegated to the charity’s administrators, who ensure that cash is readily available as appropriate and not tied up in a way that may hinder the operations of the charity.

The charity does not currently invest in bonds, equity, or property.

Principal funding sources

The income of the charity comes from grants from member communities of the Sword of the Spirit, donations from individual community members, and bank deposit interest. The charity does not own property or fixed assets, nor does it have investments. All funds are either restricted or general.

Risks review

The trustees have established a risk management programme to assess the risks to which the charity is exposed and implement risk management strategies. A process of identifying risks and implementing a continuous programme of activities to monitor and manage risks has been undertaken and is regularly reviewed by the senior management and considered at least annually by the trustees.

Going concern

After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.

Page 4

EUROPEAN OUTREACH TRUST

TRUSTEES' REPORT (CONTINUED)

Plans for future periods

The charity plans to continue its existing work. There have been no significant events since the year end that need to be reported upon.

Statement of Responsibilities

The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

The law applicable to charities requires the trustees 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 application of resources of the charity for that period. In preparing these 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 enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008, and the provisions of the constitution. The trustees are 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 annual report was approved by the trustees of the charity on 20 January 2026 and signed on its behalf by:

......................................... Andrew Pettman Trustee

Page 5

EUROPEAN OUTREACH TRUST

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF EUROPEAN OUTREACH TRUST

I report to the trustees on my examination of the accounts of European Outreach Trust for the year ended 31 March 2025.

Responsibilities and basis of report

As the charity trustees of European Outreach Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the European Outreach Trust's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

Since European Outreach Trust's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Chartered Institute of Management Accountants, which is one of the listed bodies.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of European Outreach Trust as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

...................................... G W Schulz FCMA Independent Examiners Ltd The Grain Store Hills Barns Appledram Lane South Chichester West Sussex PO20 7EG

20 January 2026

Page 6

EUROPEAN OUTREACH TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2025

Note
Unrestricted
funds
£
Income and Endowments from:
Donations and legacies
381,882
Investment income
3
39,742
Other income
12,478
Total income
434,102
Expenditure on:
Charitable activities
298,291
Total expenditure
298,291
Net income
135,811
Net movement in funds
135,811
Reconciliation of funds
Total funds brought
forward
711,117
Total funds carried
forward
12
846,928		 Restricted
funds
£
44,436
-
-
44,436
40,740
40,740
3,696
3,696
33,695
37,391		 Total
2025
£
426,318
39,742
12,478
478,538
339,031
339,031
139,507
139,507
744,812
884,319		 Total
2024
£
430,693
18,169
15,064
463,926
401,531
401,531
62,395
62,395
682,417
744,812

The notes on pages 9 to 17 form an integral part of these financial statements. Page 7

EUROPEAN OUTREACH TRUST

BALANCE SHEET AS AT 31 MARCH 2025

Note
Current assets
Debtors
9
Cash at bank and in hand
Creditors: Amounts falling due within one year
10
Net assets
Funds of the charity:
Restricted income funds
Restricted funds
Unrestricted income funds
Unrestricted funds
Total funds
12		 2025
£
563,080
985,119
1,548,199
(663,880)
884,319
37,391
846,928
884,319		 2024
£
389,409
988,102
1,377,511
(632,699)
744,812
33,695
711,117
744,812

The financial statements on pages 7 to 17 were approved by the trustees, and authorised for issue on 20 January 2026 and signed on their behalf by:

......................................... Andrew Pettman Trustee

The notes on pages 9 to 17 form an integral part of these financial statements. Page 8

EUROPEAN OUTREACH TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

1 Accounting policies

Statement of compliance

The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

Basis of preparation

European Outreach Trust meets the definition of a public benefit entity under FRS 102. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Income and endowments

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.

Donations and legacies

Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.

Gift aid

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Page 9

EUROPEAN OUTREACH TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Liabilities

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

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Pensions and other post retirement obligations

The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Page 10

EUROPEAN OUTREACH TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

2 Income from donations and legacies

Donations and legacies;
Donations
3 Investment income

Interest receivable and
similar income;
Bank interest
4 Other income

Other incoming resources		 Unrestricted
funds
General
£
381,882
381,882
Unrestricted
funds
General
£
39,742
Unrestricted
funds
General
£
12,478		 Restricted
funds
£
44,436
44,436
Restricted
funds
£
-
Restricted
funds
£
-		 Total
2025
£
426,318
426,318
Total
2025
£
39,742
Total
2025
£
12,478		 Total
2024
£
430,693
430,693
Total
2024
£
18,169
Total
2024
£
15,064

Page 11

EUROPEAN OUTREACH TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

5 Expenditure on charitable activities

Note
Travel
Other programme
expenses
Office expenses
Independent
examination
Grant funding of
activities
6
Staff costs
8		 Unrestricted
funds
General
£
51,787
24,935
29,286
1,500
117,447
73,336
298,291		 Restricted
funds
£
6,119
9,119
4,310
-
-
21,192
40,740		 Total
2025
£
57,906
34,054
33,596
1,500
117,447
94,528
339,031		 Total
2024
£
53,443
25,563
118,444
1,500
107,967
94,614
401,531

6 Grant-making

Analysis of grants
Grants		 Grants to institutions
2025
£
2024
£
117,447
107,967

7 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

Two trustees received reimbursement of expenses amounting to £1,717 (2023 - Two trustees £2,163).

Page 12

EUROPEAN OUTREACH TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

8 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs		 2025
£
91,768
1,105
1,655
94,528		 2024
£
93,006
361
1,247
94,614

The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:

2025 2024
No No
Staff 4 2

No employee received emoluments of more than £60,000 during the year

9 Debtors

9 Debtors
Prepayments
Other debtors		 2025
£
6,723
556,357
563,080		 2024
£
2,448
386,961
389,409

10 Creditors: amounts falling due within one year

Other taxation and social security
Other creditors
Accruals		 2025
£
640
653,818
9,422
663,880		 2024
£
675
615,247
16,777
632,699

Included in Other creditors are funds held on behalf of the Renewal in the Holy Spirit, a charity in Lebanon.

Page 13

EUROPEAN OUTREACH TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

11 Pension and other schemes Defined contribution pension scheme

The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to - £1,655 (2024 £1,247).

12 Funds

Unrestricted funds
General
General Funds
Restricted funds
On Holiday
Bethany
Community Building
Leadership Training
Christ the King
Association
Kairos Europe & Middle
East
Mission Development
New Mission & Leadership
Support
Total restricted funds
Total funds		 Balance at
1 April
2024
£
711,117
-
3,954
-
-
16,068
-
8,904
4,769
33,695
744,812		 Incoming
resources
£
434,102
6,563
4,534
751
142
1,390
30,305
751
-
44,436
478,538		 Resources
expended
£
(298,291)
(501)
(4,189)
(751)
-
(2,766)
(30,305)
-
(2,228)
(40,740)
(339,031)		 Balance at
31 March
2025
£
846,928
6,062
4,299
-
142
14,692
-
9,655
2,541
37,391
884,319

Page 14

EUROPEAN OUTREACH TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

Restricted funds

The On Holiday fund contains surplus funds from the “On Holiday” regional events which take place every 4-6 years and gather community members from different Sword of the Spirit communities in Europe and the Middle East. These surplus funds are set aside to fund future “On Holiday” events.

The Bethany fund is for the activities of the Bethany Association, an association of single women who are part of the Sword of the Spirit.

The Community Building fund is for building and supporting new communities in Europe and the Middle East.

The Leadership Training fund is for the continual development of current leaders and the training of new leaders in the Sword of the Spirit communities in Europe and the Middle East.

The Christ the King Association fund is for the association of Catholic members of the Sword of the Spirit.

The Kairos Europe & Middle East fund is for the regional youth programme in Europe and the Middle East.

The Mission Development fund is for developing current mission work in the Sword of the Spirit communities in Europe and the Middle East, and for exploring new mission opportunities.

The New Mission and Leader Support fund is for supporting mission opportunities that arise outside of normal activities and providing financial assistance for leaders from the Sword of the Spirit communities in Europe to attend regional and zonal events.

Page 15

EUROPEAN OUTREACH TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

Unrestricted funds
General
General Funds
Restricted funds
Bethany
Community Building
Leadership Training
Christ the King Association
Kairos Europe & Middle
East
Mission Development
New Mission & Leadership
Support
Total funds		 Balance at
1 April
2023
£
643,806
4,812
-
-
18,663
-
7,706
7,430
38,611
682,417		 Incoming
resources
£
401,042
5,693
1,198
157
-
54,638
1,198
-
62,884
463,926		 Resources
expended
£
(333,731)
(6,551)
(1,198)
(157)
(2,595)
(54,638)
-
(2,661)
(67,800)
(401,531)		 Balance at
31 March
2024
£
711,117
3,954
-
-
16,068
-
8,904
4,769
33,695
744,812

Page 16

EUROPEAN OUTREACH TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 (CONTINUED)

13 Analysis of net assets between funds

Current assets
Current liabilities
Total net assets
Current assets
Current liabilities
Total net assets		 Unrestricted
funds
General
£
1,510,808
(663,880)
846,928
Unrestricted
funds
General
£
1,343,816
(632,699)
711,117		 Restricted
funds
£
37,391
-
37,391
Restricted
funds
£
33,695
-
33,695		 Total funds
at 31
March
2025
£
1,548,199
(663,880)
884,319
Total funds
at 31
March
2024
£
1,377,511
(632,699)
744,812

Page 17