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2025-03-31-accounts

2024/25

The Federation Of Groundwork Trusts

(Operating as Groundwork UK)

Annual Report and Financial Statements

Registered office: Suite B2, The Walker Building, 58 Oxford Street, Birmingham, B5 5NR

The Federation of Groundwork Trusts Operating as Groundwork UK

Charity registration no. 291558 Company registration no. 01900511

CONTENTS

ABOUT GROUNDWORK UK

Contents

Page 3 About Groundwork UK
Page 4 Chair’s statement
Page 5 Governance
Page 5How we are organised and governed
Page 6Our commitments
Page 8 Objectves and public beneft
Page 9 Strategic report
Page 9 Performance overview
Page 12 Improving our organisaton
Page 13 Plans for the future
Page 16 Financial results
Page 20 Risks and uncertaintes
Page 21 Trustees’ responsibilites
Page 23 Independent auditor’s report
Page 28 Statement of fnancial actvites
Page 29 Charity balance sheet
Page 30 Cash fow statement
Page 31 Notes forming part of the fnancial statements
Page 52 Advisers
Page 53 The Board of Trustees

About Groundwork UK

Groundwork is a federation of charities supporting practical action to create a fair and green future in which people, places and nature thrive.

What this means in practice is delivering green homes, green jobs and green communities: creating and maintaining biodiverse, accessible green spaces; helping people find work that benefits the environment; reducing the waste of energy, food and water; supporting businesses to be more successful and responsible; and empowering communities to take action to improve their health and wellbeing while tackling climate change and promoting nature recovery.

Groundwork UK is the central body of Groundwork, responsible for the brand, systems and agreements that hold the federation together. We add value to Groundwork’s local activities by building the organisation’s profile, developing strategic relationships with partners and funders, managing programmes of local Groundwork delivery and furthering Groundwork’s mission by distributing grants to other charities and community groups on behalf of public bodies and private businesses. We act as Groundwork’s national voice in the outside world and help all parts of Groundwork gain the benefits of being in a federation by providing opportunities to collaborate, share ideas and capacity and learn from good practice.

This report outlines the activity, priorities and financial position of Groundwork UK and how it contributes to Groundwork’s collective achievements and impact, more details of which can be found at www.groundwork.org.uk.

Annual Report and Financial Statements 2024/25

CHAIR’S STATEMENT

GOVERNANCE

Chair’s Statement

My first year as Chair of the Groundwork Federation Board has flown by and been full of stimulation. Travelling around the country to see the results on the ground of the hard work done by trustees, leaders and staff teams from Groundwork Trusts, I have been struck by the passion to improve the circumstances of the people and communities they serve, and by their inventiveness in building partnerships and finding the resources to turn ideas into action.

Our work together as a federation over the last 12 months has been positive and purposeful. It has helped all parts of Groundwork to drive forward our collective priorities for action to help our beneficiaries and to support each other so that we have the strength and resilience to flourish within what is undoubtedly a challenging political and funding context.

It's been great to see the expansion of our support to families struggling with the cost of energy through the Green Doctor service, thanks to partners such as the Cadent Foundation, and the growth of our green community hub network. We have committed to a new strategic plan to expand our work supporting people-led nature recovery and have continued to work with partners to identify new ways of helping young people find their way into green jobs.

This has been complemented by our national grant programmes helping schools, community organisations and local charities expand their services and deliver new projects with the help of funding partners including Tesco, Bupa Foundation, HS2, Comic Relief and People’s Postcode Lottery. We know how much smaller charities have been impacted by rising costs, reducing their capacity to do valuable work in their communities, so it’s been a privilege to be able to support more than 1,000 organisations to improve their energy efficiency through funds provided by DCMS

When society seems increasingly fractured, Groundwork’s founding principle that we should help people and communities come together to improve their economic prospects and their physical and natural surroundings has never been more important. Looking to the future we have clear plans in place to deepen our impact in communities by expanding the reach of our services and building new cross-sector partnerships to drive innovation.

I’d like to thank my fellow trustees for giving their time so generously and all of our funders and partners for helping us deliver greater impact in communities. As Groundwork enters its 45th year, it is in good shape to work with colleagues locally and nationally to support our ambitions for green homes, green jobs and green communities. If you think there’s more we can do together we’d love to hear from you.

Oona Muirhead CBE, Chair 18 September 2025

Governance

How we are organised and governed

Groundwork UK is a charity and a company limited by guarantee.[1] Its governing documents are its Memorandum and Articles of Association, which were last amended by written resolution on 6 December 2018.

Groundwork Trusts are company members of Groundwork UK. Groundwork Trusts are independent charities and companies sharing the same mission and similar objects to Groundwork UK but delivering in local areas across England, Wales and Northern Ireland. A membership agreement sets out our roles, relationships and behaviours and a federation strategy identifies the work we will do together to deepen our impact and strengthen our organisation.

Groundwork’s Federation Board acts both as a forum for Groundwork Trusts to agree collective priorities and as the board of Groundwork UK in accordance with the Charities Act 2011. Members of the Federation Board are also the directors of the company in accordance with the Companies Act 2006. The majority of Federation Board members are nominated by the boards of Groundwork Trusts, with the remainder, including the Chair, recruited independently on account of their skills, experience or networks.

On appointment to the Board the induction process involves an introduction to the role and organisation by the Chair and the CEO

Those trustees of Groundwork UK who are also trustees of Groundwork Trusts are not considered to be related parties under the definition of the SORP and transactions between Groundwork UK and Groundwork Trusts do not require separate disclosure. Groundwork UK has considered the other disclosure requirements of the SORP and believes that there are no other related party transactions.

Our trustees are responsible for ensuring Groundwork UK is an effective and efficient organisation with appropriate systems, processes and policies in place in relation to the management of funds, programmes, communications and risk.

The work of the Board is supported by three sub-committees:

1 Groundwork UK is the operating name of the Federation of Groundwork Trusts. We will be changing our registered name to Groundwork UK during 2025/26 to reflect commonly used titles.

GOVERNANCE

GOVERNANCE

Decision-making powers of all committees are reflected in a Scheme of Delegation agreed by the Federation Board.

The Board is also supported by a Federation Executive Team, comprising the executive leaders of Groundwork Trusts, providing insight on local delivery and risks and driving collective action plans to deliver the objectives in the Groundwork federation strategy.

As a charity committed to supporting young people to play an active role in their communities, we want to ensure that our strategic decision-making and operational plans are informed by the views of young people. Our Youth Advisory Board acts as a sounding board for our internal teams and provides a platform for building and supporting a wider network of young people to improve their own lives and neighbourhoods. We also seek regular feedback from community groups we support through our grant programmes, and from other partners and stakeholders to ensure our plans respond to the needs of those they’re designed to benefit.

Groundwork UK’s Management Team is led by the Chief Executive and includes senior staff members responsible for financial management and corporate services, partnerships and fundraising, policy and communications, grant management and delivery and learning.

Remuneration of key management personnel and all staff is advised upon by the Finance & Risk Committee and subject to Board approval.

Our commitments

The Board is committed to the principles of good governance set out in the Charity Commission Governance Code and all boards within Groundwork regularly review their performance against this framework.

Our federation strategy sets out the principles which underpin all of our work.

The Groundwork UK staff team has agreed a set of values to inform the way it works and behaves. We are collaborative, responsive, focused on impact and fairness. These values are tested in our recruitment processes and embedded in our arrangements for performance management and reward and recognition.

The Groundwork UK staff team has agreed a set of values to inform the way it works and behaves. We aim to be collaborative and responsive, and prioritise impact and fairness. These values are tested in our recruitment processes and embedded in our arrangements for performance management and reward and recognition.

Our decisions, actions and operations are guided by our sustainable development policy, which sets out how we will contribute to creating a strong and just society living within environmental limits, and how we will monitor and manage our own environmental impact. This is complemented by an annually updated carbon reduction plan setting out the practical steps we will take to minimise emissions.

We have a Groundwork-wide commitment to effective safeguarding and comprehensive complaints and whistleblowing procedures. We provide equal access to our services regardless of people’s backgrounds, circumstances or characteristics, monitor levels of diversity within our staff team and board to ensure they reflect the communities of which we are a part and regularly gather feedback from colleagues about our culture, recruitment processes and employment practices to ensure they are inclusive.

Our commitments to safeguarding, EDI and sustainability apply not just to our own organisation, but to the organisations we support through our programmes and grants, with standards and guidance embedded in due diligence, monitoring and feedback processes.

Groundwork UK is registered with the Fundraising Regulator and complies with all relevant codes of practice. All of our fundraising is managed internally and we do not employ commercial participators or professional third-party fundraisers.

More information about our approach and commitments can be found here - Our approach and commitments - Groundwork

OBJECTIVES AND PUBLIC BENEFIT

STRATEGIC REPORT FOR THE YEAR ENDED 31ST MARCH 2025

Objectives and public benefit

Groundwork UK is a public benefit entity, whose primary objective is to provide goods or services for the general public or social benefit and where any risk capital has been provided with a view to supporting that primary objective rather than with a view to a financial return to its members

Groundwork UK’s charitable objectives are set down in its Memorandum of Association. They commit Groundwork UK to delivering and promoting regeneration and sustainable development as follows.

To conserve, protect and improve the physical and natural environment anywhere in the United Kingdom and Republic of Ireland.

Strategic Report for the year ended 31 March 2025

The Board of Trustees presents its report for the year ended 31 March 2025. This includes:

Page 3 An introduction to our organisation Page 5-8 Our governance and objectives Page 9-22 Our financial and operational review for the year Page 13 Our plans for the future Page 52-54 Details of our trustees, senior staff and advisers

1. Performance overview

The last year has been one of significant challenge but great success for Groundwork UK. We have extended some major funding programmes delivering a wide range of impacts in local communities, successfully completed a number of funded initiatives which have generated considerable learning and built exciting new relationships which will strengthen our ability to meet the needs of our beneficiaries.

Delivering impact in communities

Our aim at Groundwork UK is to support Groundwork’s mission to deliver green homes, green jobs and green communities by adding value to the activities of Groundwork Trusts and by distributing grants to local charities and community organisations in conjunction with national funding partners.

Supporting Groundwork’s local Green Doctor programmes to help people trapped in fuel poverty continues to be a major part of our work. Our national relationship with the Cadent Foundation continues to strengthen, and this has been accompanied by the development of our collaboration with British Gas as part of the Warm Homes Discount Industry Initiative and ongoing support from the Ofgem Energy Redress Scheme. Last year these and other programmes helped Groundwork Trusts support 19,000 households, providing advice and fitting measures with the potential to generate more than £4m in financial savings.

Groundwork UK’s trustees have referred to the Charity Commission’s general guidance on public benefit when reviewing the organisation’s objectives and planning future activities. In particular, the trustees consider how planned activities will contribute to the charitable objectives set out above.

STRATEGIC REPORT

STRATEGIC REPORT

With our Trusts we have been exploring new ways of sustaining and developing our Green Doctor service, raising public funds through a Radio 4 appeal and identifying opportunities to connect our delivery into government-funded programmes focused on upgrading homes with renewable technologies.

As well as supporting householders, our relationship with DCMS has allowed us to bring the benefits of improved energy efficiency to more than 1,000 local organisations delivering projects and services to help communities impacted by cost-of-living pressures. We have worked closely with partners Locality, CSE, Energy Saving Trust and Social Investment Business to provide independent energy assessments and more than 320 grants for capital improvements. Distributing nearly £20m in grant funding in a very compressed timescale has been a significant challenge in terms of planning and resources but has enabled us to develop new ways of working that will be of benefit to future programmes.

Giving children and young people a strong start in life is the focus of the work we deliver with Tesco, which continues to grow in scale and reach. Last year this included working with partners to help manage a new Fruit & Veg for Schools scheme helping 400 schools in disadvantaged areas buy food to ensure children are healthy and ready to learn.

We are helping community organisations create healthier environments through our Green Community Grants programme supported by the Bupa Foundation, which has been renewed for a further year. We have also been pleased to extend our relationships with Comic Relief and People’s Postcode Lottery, acting as their intermediary funders in England to ensure funds are available to smaller organisations.

Since beginning our work as HS2’s independent grant manager we have now distributed more than 360 grants totalling c£20m with new habitats for nature and new facilities for communities being created along the length of the London-Birmingham route. This work continues to be well received despite the political uncertainty surrounding the wider HS2 project.

2024/25 saw the completion of several major grant programmes delivered on behalf of central government. After 10 years working in partnership with Locality, we delivered our last grants to groups involved in the MHCLG Neighbourhood Planning programme. We also completed programmes which have helped the Home Office fund projects as part of its Prevent strategy and helped DCMS improve the capacity and reach of uniformed youth organisations. Alongside this we successfully completed delivery of our programme in West Yorkshire supported by the UK Shared Prosperity Fund, funding more than 90 organisations to support around 2,000 people to improve their skills and employability.

The completion of these programmes and the changing nature of government grant giving will require us to remodel our resources and develop and promote a renewed offer to partners and funders, drawing on our deep insight into the needs of community organisations and our ability to connect efficient national systems with local face-to-face support.

We continue to benefit hugely from business partnerships, which allow us to test new ways of working – as we have done with Impax Asset Management, helping young people access green careers, and Unity Trust Bank through a pilot focused on helping charities to improve their energy efficiency and think about carbon reduction. Alongside this we have welcomed more than 2,000 volunteers from a range of businesses – from Centrica to Sopra Steria – providing valuable extra hands to deliver practical improvements to green spaces in local communities. During the year we have developed a new biodiversity impact measurement tool, which will enable us to help companies report the environmental benefit delivered from this work alongside the outcomes for their employees and for communities.

Our work in 2024/25 helped the whole Groundwork federation generate c£120m to deliver projects, programmes and services that improve people’s prospects, create better places and protect the planet.

This has included:

While our work is primarily focused on driving project delivery at community level, we continue to lead and support activities which share the learning from this local delivery with national and regional policymakers. We have fed the data and insights generated by our Green Doctors into campaigns to combat fuel poverty and to influence the design of the Government’s Warm Homes Plan. We have also supported the work of the Independent Commission on Neighbourhoods, which has directly influenced the Government’s approach to funding regeneration activity. We have continued to work with New Philanthropy Capital on the Everyone’s Environment campaign, and with the National Trust on the development and launch of the Nature Towns and Cities initiative.

The year also saw the culmination of New to Nature, our joint initiative with the National Lottery Heritage Fund to help nearly 100 young people from under-represented backgrounds to benefit from a year’s work experience with a nature organisation. We are now focused on using the learning the programme has generated to inform more ambitious plans for helping young people find pathways into the green economy.

STRATEGIC REPORT

STRATEGIC REPORT

Improving our organisation

Our work to support collaboration and quality within the Groundwork federation remains important to us. Key areas of focus in the last year have been working with senior leaders to develop new training resources and accreditation opportunities for community practitioners and developing a shared plan to progress our ambitions in relation to green skills and jobs.

We have also taken a lead in ensuring the whole of Groundwork lives up to our collective commitment to be ‘environmental exemplars’, providing support to ensure all Groundwork Trusts have a clear and measurable carbon reduction plan in place and prioritising the development of programmes that contribute to nature recovery.

Groundwork UK’s own carbon footprint for 2024/25 was 27.6 tonnes of CO2 equivalent, unchanged from last year. Our carbon reduction plan commits us to promoting more sustainable behaviours within our staff team, particularly in relation to travel and homeworking arrangements to help meet the federation target of halving our collective emissions from our 2019/20 baseline by 2035.

Our people management metrics remain positive with high levels of commitment and satisfaction within the staff team and low levels of absence and staff turnover. Our People Plan is focused on ensuring we are pro-actively supporting our colleagues to develop and progress in their roles and identifying ways to help teams cope with challenging workloads.

Our EDI working group continues to deliver a programme of training and awareness raising activities informed by team-wide surveys and a self-assessment process. We capture and monitor data on the diversity of our staff team and trustees and continue to support the RACE Report, ensuring there is transparency around racial diversity in the environmental sector.

Groundwork UK’s gender pay gap stands at 28% (2024: 24%). With the highest earner removed the pay gap is 13%. We continue to address this by providing flexible working arrangements and prioritising internal development opportunities. 31% of all posts recruited over the last three years were filled by an internal candidate progressing into a higher paid role and last year 6 out of 10 team members benefiting from our reward and recognition process were female.

2. Our plans for the future

Groundwork UK’s plans for the future have been shaped and informed by a number of trends impacting on the policy and funding landscape within which we operate.

Analysis of all recruitment exercises undertaken in the last three years shows that:

STRATEGIC REPORT

STRATEGIC REPORT

How we respond to these opportunities and pressures is also influenced by the ongoing development of the Groundwork federation.

Groundwork UK’s strategy and priorities

In order to ensure Groundwork UK’s activities are fully aligned with the needs and expectations of the federation, our future plans are clearly and explicitly driven by Groundwork’s 2028 strategy for collective action.

Groundwork UK’s purpose, in line with the federation strategy, is to deliver practical action to create a fair and green future in which people, places and nature thrive, achieving this in three ways:

We have identified four objectives to take forward as a team to support delivery of the strategy. We will:

Our progress against these objectives will be reported quarterly to:

We will track core sets of data to help us manage our organisation and ensure we are meeting the needs of our beneficiaries and other stakeholders, including:

STRATEGIC REPORT

STRATEGIC REPORT

3. Financial results

Our long-term financial strategy is unchanged. We aim to maximise the resources available for local delivery (by minimising our costs and generating income), while maintaining the capacity we need to operate effectively and safely. Achieving a surplus position at the end of the year ensures we maintain sufficient reserves to sustain our charitable operations while being able to invest in activities that benefit the federation.

Incoming resources for 2024/25 totalled £48.7 million (2024: £21.3 million). Our organisational turnover is heavily influenced by the volume of grants we distribute on behalf of other funders and in the last 12 months we have been delivering a major programme for DCMS to distribute funding to community organisations to enable them to improve the energy efficiency of their buildings, which has generated a significant turnover increase. This was a short-term initiative and we expect turnover levels to return to more customary levels in future years.

These year-to-year fluctuations in grant funds are not considered to be the determining factor in our assessment of financial health. Our underlying trading performance resulted in an unrestricted surplus of £286k (2024: £81k), compared to a budget of break even. The final reported outturn includes a £33k decrease in the value of our investments.

In addition to this income, we received funds and distributed grants totalling £3.1 million, funds for which we are responsible as agent for the funder, but which are not included in our stated turnover.

3.1 Reserves

In line with our financial strategy, our trustees have agreed that we should aim to hold 12 months operating costs (c£3 million) in liquid reserves. These reserves help us to:

Our reserves policy recognises the need to operate as a responsible charity, maintaining trust with our partners and the public by not generating surpluses for which there is no future requirement or that are used for purposes which are not directly connected to our charitable aims.

Our level of free liquid reserves at the end of 2024/25 is £3.1 million.

Our restricted funds - advance payments from funders pending completion of project work – stand at £3.9 million (2024: £1.2 million). These restricted funds can only be used in accordance with agreements reached with funders and do not form part of the general reserves that are under the control of the trustees. These funds will all be distributed during 2025/26.

3.2 Investments

The majority of the funds obtained by Groundwork UK are for the delivery of specified projects and are therefore restricted. These funds are mainly distributed to Groundwork Trusts and other delivery partners operating under contract or to third party organisations in the form of grants to support local community projects. Any funds that are built up in advance of expenditure are kept as liquid as possible, whilst making every effort to maximise returns.

Cash that is unrestricted in nature and is not required in the short term (regarded as six months) is considered for long-term investment. We invest these funds in an ethically responsible managed fund arrangement with Cazenove, which chooses investments having a positive impact on people and planet, with the long- term aim of guarding against the eroding effects of inflation by growing in line with the CPI and providing a reliable dividend income. In the last year, our investments reduced in value by £33k (1.6%) and delivered dividend income of £57k. All of these funds can be converted into cash without notice or penalty, should there be an immediate need for liquid funds.

3.3 Grant making policy

Groundwork UK delivers its mission primarily by distributing funds to Groundwork Trusts, other delivery partners and to community groups in the form of grants. Grants paid are accounted for as soon as award decisions are made. If an offer is conditional on events outside the grantee’s control and it is possible (but not probable) that an outflow of economic benefits will arise, such amounts are recognised as contingent liabilities until the grant conditions are fulfilled. CPI and providing a reliable dividend income. In the last year, our investments reduced in value by £33k (1.6%) and delivered dividend income of £57k. All of these funds can be converted into cash without notice or penalty, should there be an immediate need for liquid funds.

STRATEGIC REPORT

STRATEGIC REPORT

3.4 Principal funding sources

Our major sources of funding during the last year are set out below.

3.5 Expenditure on charitable objectives

Our expenditure in the year was directed towards the following charitable activities. 

  - A Community grants - £32.8 million (2024: £14.2 million) Distributing funds on behalf of third parties to enable schools, community groups and local charities to deliver projects that improve local areas, tackle hardship and provide support to those who are vulnerable.

  - A Programme delivery - £6.0 million (2024: £5.7 million)

STRATEGIC REPORT

STRATEGIC REPORT

4. Risks and uncertainties

Our trustees are responsible for ensuring that Groundwork UK has processes and policies in place to identify and mitigate risks that might impact on the organisation’s ability to operate safely and effectively.

Risk management is an integral part of the way in which Groundwork UK manages its programmes, partnership development and communications, with key risks discussed on a regular basis by managers.

The most significant organisational risks are discussed quarterly with our Finance & Risk Committee and shared with the Federation Board. This includes consideration of risks that arise in the wider federation which might bring reputational or financial consequences for Groundwork UK.

Given our role as a distributor of small grants to community organisations we are particularly conscious of the risk of fraud and undertake regular reviews of our due diligence and monitoring processes. The controls we have in place to prevent and mitigate fraud more generally are discussed with our trustees.

The most significant ongoing risks for which we have active mitigation strategies in place are as follows:

Groundwork UK’s financial risk management objective is broadly to seek to make neither profit nor loss from exposure to currency or interest rate risks. Our policy is to finance fixed assets and working capital through retained reserves.

5. Statement of trustees' responsibilities

Our trustees are responsible for preparing Groundwork UK’s Annual Report and Financial Statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure of the charity for that period.

In preparing these financial statements, the trustees are required to:

Our trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and taking reasonable steps to prevent and detect fraud and other irregularities.

These financial statements are published on our website in accordance with UK legislation governing the preparation and dissemination of financial statements. The maintenance and integrity of the website is the responsibility of the trustees. The trustees’ responsibility also extends to the ongoing integrity of the financial statements published.

INDEPENDENT AUDITOR’S REPORT

STRATEGIC REPORT

Events after the year end

There have been no material events after the year end to report.

Disclosure of information by the trustees to the auditor

Each of the trustees has confirmed that, so far as they are aware, there is no relevant audit information of which Groundwork UK’s auditor is unaware, and that they have taken all the steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that Groundwork UK’s auditor is aware of that information.

Signed on behalf of the Board of Trustees

Oona Muirhead CBE, Chair 18 September 2025

Independent Auditor’s Report to the Members of The Federation of Groundwork Trusts

Opinion

We have audited the financial statements of The Federation of Groundwork Trusts for the year ended 31 March 2025, which comprise statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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.

INDEPENDENT AUDITOR’S REPORT

INDEPENDENT AUDITOR’S REPORT

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 trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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 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.

Opinions on other matters prescribed by the Companies Act 2006

Matters on which we are required to report by exception

In 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 strategic report or the directors’ report included within the trustees’ report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 21 , 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.

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

INDEPENDENT AUDITOR’S REPORT

INDEPENDENT AUDITOR’S REPORT

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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

including fraud, to be within the recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Audit Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, designing audit procedures over income, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Helen Blundell LLB FCA FCIE DChA (Senior Statutory Auditor)

For and on behalf of Crowe U.K. LLP, Statutory Auditor

Black Country House, Rounds Green Road, Oldbury, West Midlands B69 2DG

Date: 22 December 2025

We identified the greatest risk of material impact on the financial statements from irregularities,

STATEMENT OF FINANCIAL ACTIVITIES

CHARITY BALANCE SHEET

29

Statement of Financial Activities

FOR THE YEAR ENDED 31 MARCH 2025

INCOME FROM
Donatons and legacies
Charitable actvites
Other trading actvites
Investments
Total
EXPENDITURE ON
Raising funds
Charitable actvites
Total
Surplus or (Defcit) on Trading
Net (losses) or gains on investment
Net income
Transfers between funds
Net movement in funds
RECONCILIATION OF FUNDS
Fund balances brought forward
Fund balances carried forward
Note
2
3
2
2
4
5
11
16
16		 General
£
68,212
7,235,643
150,945
261,719
7,716,519
24,281
7,264,975
7,289,256
427,263
(32,600)
394,663
(108,761)
285,902
2,380,420
2,666,322
Designated
£
–
–
–
–
–
–
161,205
161,205
(161,205)
–
(161,205)
108,761
(52,444)
482,730
430,286
2025
Unrestricted
funds		 £
-
41,024,648
–
–
41,024,648
137,669
38,145,165
38,282,834
2,741,814
–
2,741,814
–
2,741,814
1,175,666
3,917,479
2025
Restricted
funds		 £
68,212
48,260,291
150,945
261,719
48,741,167
161,950
45,571,345
45,733,295
3,007,872
(32,600)
2,975,272
–
2,975,272
4,038,816
7,014,087
2025
Total		 £
24,397
20,921,620
150,928
210,049
2024
Total
21,306,994
289,046
22,335,964
22,625,010
(1,318,016)
119,276
(1,198,740)
–
(1,198,740)
5,237,556
4,038,816

Incoming resources and resources expended derive from continuing operations. The company has no other recognised gains or losses other than those passing through the statement of financial activities. The notes pages 31 to 51 form part of these financial statements.

Charity Balance Sheet

AT 31 MARCH 2025

AT 31 MARCH 2025
Company registraton number
01900511 Note 2025 2024
£ £ £ £
FIXED ASSETS
Tangible assets 9 10,797 10,969
Investments 11 2,038,200 2,070,800
Investments in subsidiaries 10 3 3
2,049,000 2,081,772
CURRENT ASSETS
Debtors 7,251,071 9,288,605
Cash at bank 12 7,863,364 4,231,497
15,114,435 13,520,102
Creditors:amounts falling due within one year 13 (10,129,348) (11,553,058)
Net Current Assets 4,985,087 1,967,044
Total assets less current liabilites 7,034,087 4,048,816
Creditors:amounts falling due afer one year 18 (20,000) (10,000)
NET ASSETS 7,014,087 4,038,816
RESERVES
Unrestricted - General 16 2,666,322 2,380,420
Designated 16 430,286 482,730
Restricted 16 3,917,479 1,175,666
7,014,087 4,038,816

These financial statements were approved by the Board of Trustees and authorised for issue on 18 September 2025 and signed on its behalf by:

Oona Muirhead, Chair

The notes pages 31 to 51 form part of these financial statements.

18 September 2025

CASH FLOW STATEMENT

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

Cash Flow Statement

FOR THE YEAR ENDED 31 MARCH 2025

CASH FLOW FROM OPERATING ACTIVITIES
Net cash provided by operatng actvites
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends, interest and rents from investments
Purchase of fxed assets
NET CASH PROVIDED BY INVESTMENT ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Change in cash and cash equivalents in the reportng period
Cash and cash equivalents at the beginning of the reportng period
Cash and cash equivalents at the end of the reportng period
Note
21		 2025
£
3 ,379,292
261,719
( 9,144)
252,575
3,631,867
4,231,497
7,863,364		 2024
£
(1,266,014)
210,049
( 7,235)
202,814
(1,063,199)
5,294,696
4,231,497

Notes forming part of the financial statements

FOR THE YEAR ENDED 31 MARCH 2025

1. Accounting policies

The following accounting policies have been applied consistently in dealing with items, which are considered material in relation to the financial statements.

a) Basis of preparation

The financial statements have been prepared under the historical cost convention and comply with the Companies Act 2006. The financial statements have been prepared in accordance with applicable Accounting Standards and comply with the requirements of the Statement of Recommended Practice, “Charities SORP (FRS 102)”.

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

The results of acquisitions are accounted for from the relevant date of acquisition under the acquisition method of accounting.

Accounting policies are supplemented by estimation techniques where judgement is required in measuring the value of income and expenditure and of assets and liabilities.

Movement in Net Debt

Movement in Net Debt
At
Cash at bank and in hand
Debt due within 1 year
Debt due over 1 year
1 April 2024
£
4,231,497
–
–
4,231,497		 Cash fows
£
3,631,867
–
–
3,631,867
31 March 2025
£
7,863,364
–
–
7,863,364
7,863,364

b) Grants and other income

Revenue and capital-based grants are credited to the statement of financial activities in the year in which they are received or become receivable under the terms of a grant agreement.

Where grants are considered to be performance related, income is recognised to the extent that the services outlined in the funding agreement had been performed by the year end. Where income has been received but the related services had not been performed by the year-end, the balance is carried forward as deferred income.

Donations are accounted for on a cash received basis. Rental income is recognised in the period to which it relates.

Incoming resources have been allocated between the key strategic areas of activity on a basis consistent with the allocation of expenditure (note 1(d)).

The notes on pages 31 to 51 form part of these financial statements.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

c) Grants payable

Grants offered to Groundwork Trusts and other organisations are typically paid in stages, with stage payments dependent upon the submission of claims detailing the work that has been completed. Claims which fall due within the year, which relate to work completed before the year-end, have been accrued for if they had not been paid during the year.

All grants payable relate to institutional grants paid to Groundwork Trusts, delivery partners and community groups.

The detailed breakdown of all grant payments is available on request from the charity’s principal address.

d) Expenditure

All expenditure is accounted for on an accruals basis and has been listed under headings that aggregate all the costs related to that activity. Where costs cannot be directly allocated, they have been allocated to activities on a basis consistent with the use of resources.

Costs of raising funds relate to the cost of external promotion and publicity to raise the profile of the charity and its objectives and costs associated with bids for funding.

Direct costs of charitable activities are those costs, which have been expended on delivery programmes. Support costs have been allocated to the key strategic areas of activity on the basis of the percentage of staff time spent on each of these areas.

e) Funds

Unrestricted funds are those which are available for use at the discretion of the Board of Trustees in furtherance of the general objectives of the charity. The Board may, at its discretion, set aside unrestricted funds for specific future purposes and these are referred to as designated funds. Where such funds are no longer required for the intended purposes they are released back to general unrestricted reserves.

f) Depreciation

Tangible fixed assets are stated at cost less provision for depreciation. Depreciation is calculated so as to write off the cost less the estimated residual value of tangible fixed assets by equal annual instalments over their estimated useful economic lives as follows:

Leasehold buildings: 50 years Office equipment: 4 years Computer equipment: 3 years

g) Pensions

The company contributes to two defined contribution schemes. Contributions are charged to the

statement of financial activities as they become payable.

h) Operating leases

Rentals paid under operating leases are charged to the statement of financial activities on a straightline basis over the life of the asset.

i) Provisions

Provisions for future liabilities are recognised when the charity has a legal or constructive obligation that can be reliably estimated and for which there is an expectation that payment will be made.

j) Fixed asset investments

Investments held are valued at market value. Unrealised gains and losses on the revaluation of investments are recognised in the statement of financial activities.

k) Key judgements

Grant awards are recognised as soon as awards are made at grant panels.

Restricted funds are those which can only be used for purposes specified by the donor, or which have been raised under the terms of a specific bid. Expenditure under the terms of the grant agreement is shown as restricted expenditure.

l) Public Benefit Entity

The company is a public benefit entity, whose primary objective is to provide goods or services for the general public or social benefit and where any risk capital has been provided with a view to supporting that primary objective rather than with a view to a financial return to its members.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

2. Incoming resources from generated funds

VOLUNTARY INCOME
Donatons and gifs
OTHER TRADING ACTIVITIES
Membership Fee
Car Parking
INVESTMENT INCOME
Dividends
Bank interest

VOLUNTARY INCOME
Donatons and gifs
OTHER TRADING ACTIVITIES
Membership Fee
Car Parking
INVESTMENT INCOME
Dividends
Bank interest		 £
68,212
68,212
150,000
945
150,945
57,305
204,415
261,719
2025
Unrestricted
£
24,397
24,397
150,000
928
150,928
65,113
144,936
210,049
2024
Unrestricted		 £
–
–
–
–
–
–
–
2025
Designated
£
–
–
–
–
–
–
–
–
2024
Designated		 £
–
–
–
–
–
–
–
2025
Restricted
£
–
–
–
–
–
–
–
–
2024
Restricted		 £
68,212
2025
Total
68,212
150,000
945
150,945
57,305
204,415
261,719
£
24,397
2024
Total
24,397
150,000
928
150,928
65,113
144,936
210,049

3. Incoming resources from charitable activities

Income for project delivery was secured
from the following sources:
Central government
Local authorites
Public agencies
Private sector
Natonal Lotery and charitable foundatons
£
1,351,629
0
693,133
4,679,421
511,460
7,235,643
2025
Unrestricted
Income was allocated to:
Grant distributon
Programme delivery
Programme management
Federaton support
Fundraising and communicatons
Running Groundwork UK
5,844,285
946,687
249,833
20,770
74,756
99,312
7,235,643		 £
–
–
–
–
–
–
2025
Designated
–
–
–
–
–
–
–		 £
21,725,171
2,370,837
2,619,633
11,145,787
3,163,220
41,024,648
2025
Restricted
33,135,930
5,367,523
1,416,504
117,761
423,854
563,076
41,024,648		 £
23,076,800
2,370,837
3,312,766
15,825,208
3,674,680
2025
Total
48,260,291
38,980,215
6,314,210
1,666,337
138,531
498,610
662,388
48,260,291

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

Incoming resources from charitable activities (continued)

Income for project delivery was secured
from the following sources:
Central government
Local authorites
Public agencies
Private sector
Natonal Lotery and charitable foundatons
Income was allocated to:
Grant distributon
Programme delivery
Programme management
Federaton support
Fundraising and communicatons
Running Groundwork UK		 £
587,851
28,071
441,362
3,939,983
494,815
5,492,082
2024
Unrestricted
3,500,101
1,408,775
338,724
68,869
98,729
76,884
5,492,082		 £
–
–
–
–
–
–
2024
Designated
–
–
–
–
–		 £
138,485
17,613
2,286,895
8,399,635
4,586,910
15,429,538
2024
Restricted
9,833,237
3,957,835
951,617
193,480
277,372
215,997
15,429,538		 £
726,336
45,684
2,728,257
12,339,618
5,081,725
2024
Total
20,921,620
13,333,338
5,366,610
1,290,341
262,349
376,101
292,881
20,921,620

4. Cost of raising funds

Staff costs Other costs

Staff costs Other costs

£
20,734
3,547
24,281
2025
Unrestricted
£
65,658
10,219
75,877
2024
Unrestricted		 £
–
–
–
2025
Designated
£
–
–
–
2024
Designated		 £
117,558
20,111
137,669
2025
Restricted
£
184,459
28,710
213,169
2024
Restricted		 £
138,292
23,658
2025
Total
161,950
£
250,117
38,929
2024
Total
289,046

For definitions of the above categories, see section 3.5 of the strategic report

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

5. Charitable activities

Expenditure on projects related to the
following actvites:
Grant Distributon
Programme delivery
Programme management
Federaton support
Fundraising and communicatons
Running Groundwork UK
£
5,867,977
950,524
250,846
20,854
75,059
99,714
7,264,975
2025
Unrestricted		 £
130,206
21,091
5,566
463
1,666
2,213
161,205
2025
Designated		 £
30,810,149
4,990,782
1,317,081
109,496
394,104
523,555
38,145,165
2025
Restricted		 £
36,808,333
5,962,397
1,573,493
130,812
470,829
625,482
2025
Total
45,571,345
Expenditure on projects comprised:
Grant Distributon
Programme delivery
Programme management
Federaton support
Fundraising and communicatons
Running Groundwork UK		 £
32,803,709
5,313,708
1,402,302
116,580
419,605
557,431
40,613,335
2025
Grants
payable		 £
3,057,017
495,191
130,682
10,864
39,103
51,948
3,784,805
2025
Other direct
costs of
actvites		 £
947,606
153,498
40,509
3,368
12,121
16,103
1,173,205
2025
Support
costs		 £
36,808,332
5,962,397
1,573,493
130,812
470,829
625,482
2025
Total
45,571,345

Charitable activities (continued)

Expenditure on projects related to the
following actvites:
Grant Distributon
Programme delivery
Programme management
Federaton support
Fundraising and communicatons
Running Groundwork UK		 £
3,644,095
1,466,732
352,659
71,702
102,791
80,048
5,718,027
2024
Unrestricted		 £
31,986
12,874
3,095
629
902
704
50,190
2024
Designated		 £
10,558,617
4,249,797
1,021,816
207,753
297,833
231,931
16,567,747
2024
Restricted		 £
14,234,698
5,729,403
1,377,570
280,084
401,526
312,683
2024
Total
22,335,964
Expenditure on projects comprised:
Grant Distributon
Programme delivery
Programme management
Federaton support
Fundraising and communicatons
Running Groundwork UK		 £
11,157,306
4,490,767
1,079,755
219,533
314,720
245,083
17,507,164
2024
Grants
payable		 £
2,453,016
987,328
237,392
48,266
69,194
53,884
3,849,080
2024
Other direct
costs of
actvites		 £
624,376
251,308
60,424
12,285
17,612
13,715
979,720
2024
Support
costs		 £
14,234,698
5,729,403
1,377,571
280,084
401,526
312,682
2024
Total
22,335,964

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

Charitable activities (continued)

Charitable actvites (contnued)
Analysis of grants
Creatng beter places
Improving peoples prospects
Promotng greener living and working
£
9,386,719
10,091,876
21,134,740
40,613,335
Grants to
insttutons
£
–
–
–
–
Grants to
individuals
£
271,156
291,526
610,523
1,173,205
Grant
support
costs
Analysis of grants
Creatng beter places
Improving peoples prospects
Promotng greener living and working
£
4,920,481
7,236,708
5,349,975
17,507,164
Grants to
insttutons
£
–
–
–
–
Grants to
individuals
£
275,356
404,974
299,390
979,720
Grant
support
costs
Support costs are analysed as follows:
Staf costs
Temporary staf and recruitment
Legal and professional
Travel and subsistence
Training and meetngs
IT support
Other costs
£
912,271
1,787
36,708
27,385
24,422
48,214
122,418
1,173,205
2025
There are no grants made to insttutons which are material in the context of the grant making.		 £
9,657,875
10,383,402
21,745,263
2025
Total
41,786,540
£
5,195,837
7,641,682
5,649,365
2024
Total
18,486,884
£
709,810
3,071
33,062
8,650
17,783
90,800
116,544
2024
979,720

There are no grants made to institutions which are material in the context of the grant making.

6. Employees

The average monthly number of employees during the year was as follows:
Programme management
Management and administraton
Fundraising and communicatons
The aggregated cost of these persons was as follows:
Wages and salaries
Social security costs
Pension costs (see note 19)
The emoluments of employees (excluding pension contributons) over
£60,000 per annum are disclosed in £10,000 bands as follows:
£60,000 - £70,000
£80,000 - £90,000		 Number
39
5
13
57
2025
£
1,930,759
198,166
299,641
2,428,566
2025
£
2
1
3
2025		 Number
37
5
12
2024
54
£
1,758,417
177,050
289,556
2024
2,225,023
£
2
1
2024
3

The key senior management personnel of the charity are the Chief Executive Officer, Director of Finance and Corporate Services, Director of Partnerships and Programmes, Head of Contracts, Head of Policy and Communications and Head of Grants with a total cost in 2025 of £432,802 (2024 - £369,717)

Total contributions under defined contribution schemes on behalf of these higher paid employees in 2025 were £29,020 (2024 - £24,780)

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

7. Transactions with trustees

During the year ending 31st March 2025 6 trustees were reimbursed for travel costs amounting to £846 (2024 - 2 trustees £825 travel costs).

No Trustees received any remuneration during the year.

8. Net incoming resources

8. Net incoming resources
2025 2024
£ £
Net incoming resources for the year is stated afer charging:
Auditor’s remuneraton:
Audit – company 18,600 17,385
Depreciaton 9,317 16,381

10. Investments held as fixed assets

Shares in subsidiary undertakings
£
COST
At 1 April 2024 3
Disposals –
At 31 March 2025 3
NAME Nature of business
registraton		 Country of
registraton
Class of
shares held		 Proporton
Groundwork Trade Associaton Ltd Dormant England Ordinary 100%
Groundwork Enterprises Ltd Dormant England Ordinary 100%
Groundwork UK Ltd Dormant England Ordinary 100%

Premiums in 2025 £647 (2024: £699) were paid on a professional indemnity policy to protect the charity and trustees from loss arising from neglect or defaults of trustees.

9. Tangible assets

COST OR VALUATION
At 1 April 2024
Additons
At 31 March 2025
DEPRECIATION
At 1 April 2024
Charged for the year
At 31 March 2025
NET BOOK VALUE
At 31 March 2025
At 31 March 2024		 £
78,450
9,145
87,595
67,481
9,317
76,798
10,797
10,969
Ofce
equipment		 £
78,450
9,145
Total
87,595
67,481
9,317
76,798
10,797
10,969
2025 2024
£ £
SUBSIDIARY UNDERTAKING
Groundwork Trade Associaton Ltd 4,000 4,000
Groundwork Enterprises Ltd 25,002 25,002
Groundwork UK Ltd 1 1

11. Fixed asset investments

VALUATION
At 1 April 2024
Investments
Net loss on revaluaton
At 31 March 2025		 £
2,070,800
-
(32,600)
2,038,200

Investments are held in a managed mixed fund, which is designed to deliver a return of between 3% and 4% above the Consumer Price Index, over a rolling three-year period.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

12. Debtors

12. Debtors
2025 2024
£ £
Grants receivable 1,220,165 2,142,454
Other debtors 100,000 335
Prepayments and accrued income 5,930,906 7,145,816
7,251,071 9,288,605
13. Creditors
2025 2024
£ £
Grants due and payable 7,194,370 8,690,487
Agency creditor 148,154 768,065
Social security and other taxes 59,788 43,803
Other creditors 775,696 117,802
Accruals 1,379,254 1,237,793
Deferred income (note 14) 572,086 695,108
10,129,348 11,553,058
Balance at Amount paid Amount Balance at 31
1 April 2024 in year accrued in the March 2025
year
£ £ £ £
Grants due and payable 8,690,487 5,616,472 4,120,355 7,194,370
Agency creditor 768,065 3,119,911 2,500,000 148,154
Balance at Amount paid Amount Balance at 31
1 April 2023 in year accrued in the March 2024
year
£ £ £ £
Grants due and payable 11,312,641 8,487,412 5,865,258 8,690,487
Agency creditor 1,663,104 2,947,789 2,052,750 768,065

13. Creditors

14. Deferred income

14. Deferred income
Amount
released to Amount Balance at
Balance at 1 April incoming deferred 31 March
Movements in deferred income during 2024 resources in the year 2025
the year were as follows: £ £ £ £
Community projects 695,108 695,108 572,086 572,086
Amount released Amount Balance at
Balance at to incoming deferred 31 March
1 April 2023 resources in the year 2024
£ £ £ £
Community projects 822,098 822,098 695,108 695,108

Income is deferred where it is linked to milestones in future periods.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

15. Analysis of net assets

Tangible fxed assets
Investments
Net current assets
Provision for liabilites
£
10,797
2,038,203
1,067,608
(20,000)
3,096,608
Unrestricted
funds
Tangible fxed assets
Investments
Net current assets
Provision for liabilites
£
10,969
2,070,803
791,378
(10,000)
2,863,150
Unrestricted
funds		 £
-
-
3,917,479
-
3,917,479
Restricted
funds
£
-
-
1,175,666
-
1,175,666
Restricted
funds		 £
10,797
2,038,203
4,985,087
(20,000)
Total
2025
7,014,087
£
10,969
2,070,803
1,967,044
(10,000)
Total
2024
4,038,816

16. Statement of funds

16. Statement of funds
UNRESTRICTED FUNDS
At 1st April 2024
Incoming resources
Resources expended
Transfers
Loss on investment
At 31 March 2025		 £
482,730
-
(161,205)
108,761
-
430,286
Designated
fund		 £
2,380,420
7,716,519
(7,289,256)
(108,761)
(32,600)
2,666,322
General
fund		 £
2,863,150
7,716,519
(7,450,461)
-
(32,600)
Total
3,096,608

Statement of Funds (continued)

Statement of Funds (contnued)
UNRESTRICTED FUNDS
At 1 April 2023
Incoming resources
Resources expended
Transfers
Surplus on investments
At 31 March 2024
 £
411,305
-
(50,190)
121,615
-
482,730
Designated
fund		 £
2,299,207
5,877,456
(5,793,904)
(121,615)
119,276
2,380,420
General
fund		 £
2,710,512
5,877,456
(5,844,094)
-
119,276
Total
2,863,150

Designated funds include £80k to support strategic objectives across the Groundwork federation, £50k to fund staff training and development, £95k to support on-going programmes in 2025-26 and £205k to seed fund new programmes that align to federation strategic objectives.

Restricted funds comprise performance
related grants as follows:
RESTRICTED FUNDS
Britsh Gas Trading Ltd
Bupa
Tesco Community Grants
HS2 Grants
Comic Relief
Cadent Foundaton
DCMS - Energy Efciency Scheme
Home Ofce
Onestop Carriers For Causes
Peoples Post Code Lotery
Redress - Energy Efciency Scheme
The Natonal Lotery Community Fund
The Natonal Lotery Heritage Fund
West Yorkshire Combined Authority
Other programmes
£
-
58,890
-
-
39,855
469,198
-
91,517
72,744
-
(24,019)
30,912
18,533
-
418,036
1,175,666
Balance at
1 April 2024		 £
(998,134)
(607,629)
(8,906,969)
(2,619,634)
(535,199)
(1,162,594)
(18,300,738)
(824,229)
(270,211)
(330,307)
(329,208)
(30,912)
(482,497)
(2,363,812)
(520,762)
(38,282,835)
Resources
expended
£
21,111
54,191
-
-
261,387
612,236
2,676,698
15,023
22,149
55
-
-
157,782
-
96,847
3,917,479
Balance at 31
March 2025
£
1,019,245
602,930
8,906,969
2,619,633
756,731
1,305,632
20,977,436
747,735
219,616
330,362
353,227
-
621,746
2,363,812
199,574
41,024,648
Incoming
resources		 £
(998,134)
(607,629)
(8,906,969)
(2,619,634)
(535,199)
(1,162,594)
(18,300,738)
(824,229)
(270,211)
(330,307)
(329,208)
(30,912)
(482,497)
(2,363,812)
(520,762)
(38,282,835)
Resources
expended
£
21,111
54,191
-
-
261,387
612,236
2,676,698
15,023
22,149
55
-
-
157,782
-
96,847
3,917,479
Balance at 31
March 2025
£
1,019,245
602,930
8,906,969
2,619,633
756,731
1,305,632
20,977,436
747,735
219,616
330,362
353,227
-
621,746
2,363,812
199,574
41,024,648
Incoming
resources
3,917,479

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

Large programmes include:

Large programmes include:
Britsh Gas Trading Ltd Supportng vulnerable energy customers with advice and energy saving
measures
Bupa Bupa Foundaton Green Community Grants support practcal projects
which help both people and planet health
Tesco Community Grants Grants to fund local community projects, voted for by Tesco customers
HS2 Grants Grants to organisatons to mitgate the disrupton of HS2 constructon
Comic Relief Grant funding to community led organisatons to support capacity building
and project delivery
Cadent Foundaton Funding for energy efciency advice and measures to vulnerable
households, delivered by Groundwork 'Green Doctors'
DCMS - Energy Efciency Scheme Grants to Community organisatons to improve energy efciency
Home ofce Supports Local authorites (LA) in their work with communites to build
resilience to radicalisaton
One Stop Carriers for Causes Grants to fund local community projects in areas close to One Stop stores
Peoples Post Code Lotery Grassroots Grants provides unrestricted funding of up to £2,000 for small,
local organisatons in England who are making a positve diference in their
communites
Redress - Energy Efciency Scheme Support to vulnerable customers to reduce energy bills
The Natonal Lotery Heritage Fund Work placements in the green job sector aimed at partcipants from
diverse backgrounds
West Yorkshire Combined Authority Supportng people furthest from the labour market to improve
employability prospects
RESTRICTED FUNDS
Britsh Gas Centrica
Bupa
Tesco Community Grants
HS2 Grants
Comic Relief
Cadent Foundaton
DCMS - Energy Efciency Scheme
Home Ofce
Firethorn Trust
Onestop Carriers For Causes
Redress - Energy Efciency Scheme
The Natonal Lotery Community Fund
The Natonal Lotery Heritage Fund
Other programmes		 £
-
-
-
-
841,923
693,507
-
174,697
135,547
65,544
-
17,415
-
598,411
2,527,044
Balance at 1
April 2023		 Resources
expended
Balance at 31
March 2024
Incoming
resources
£
-
615,467
6,281,569
2,272,090
391,375
1,658,304
688,846
138,485
-
35,000
421,928
14,768
1,755,300
1,156,406
15,429,538
£
-
(556,577)
(6,281,569)
(2,272,090)
(1,193,443)
(1,882,613)
(688,846)
(221,665)
(135,547)
(27,800)
(445,947)
(1,270)
(1,736,767)
(1,336,781)
(16,780,916)
£
-
58,890
-
-
39,855
469,198
-
91,517
-
72,744
(24,019)
30,912
18,533
418,036
1,175,666		 Resources
expended
Balance at 31
March 2024
Incoming
resources
£
-
615,467
6,281,569
2,272,090
391,375
1,658,304
688,846
138,485
-
35,000
421,928
14,768
1,755,300
1,156,406
15,429,538
£
-
(556,577)
(6,281,569)
(2,272,090)
(1,193,443)
(1,882,613)
(688,846)
(221,665)
(135,547)
(27,800)
(445,947)
(1,270)
(1,736,767)
(1,336,781)
(16,780,916)
£
-
58,890
-
-
39,855
469,198
-
91,517
-
72,744
(24,019)
30,912
18,533
418,036
1,175,666
1,175,666

17. Commitments under operating leases

As at 31st March 2025, the charity had total commitments under a non-cancellable lease for premises as set out below.

Within 1 Year
1-2 Years
2-5 Years		 £
48,657
–
–
48,657
2025		 £
53,704
46,032
–
2024
99,736

£64,876 was expensed during the year (2024: £53,704)

18. Provision for dilapidation

A provision of £20,000 has been included to cover the possible dilapidation costs associated with the lease of the Walker Building. This will be reviewed annually to ensure it is sufficient to cover future possible liabilities.

19. Pensions

During the year ended 31 March 2025 Groundwork UK paid contributions into a defined contribution scheme. The total charge to the defined contribution scheme amounted to £299,641 (2024: £289,556). Contributions outstanding at the year-end amounted to £25,143 (2024: £24,420).

20. Related party transactions

At the year-end a balance of £4,000 (2024: £4,000) was owed to Groundwork Trade Association Limited, a wholly owned subsidiary of the company. There are no other related party transactions.

Programme funds are only available for expenditure in accordance with the funders' directions.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

21. Reconciliation of net income to net cash flow from operating activities

22. Financial Instruments
Net income for the reportng period (as per the SOFA)
ADJUSTED FOR:
Losses / (Gains) on Investments
Depreciaton charge
Investment income
(Increase) / Decrease in debtors
Increase / (Decrease) in creditors
Increase / (Decrease) in provisions
Net cash provided by (used in) operatng actvites
Groundwork UK’s fnancial instruments may be analysed as follows:
FINANCIAL ASSETS
Financial assets measured at fair value through proft and loss:
Investments		 £
2,975,272
32,600
9,317
(261,719)
2,037,533
(1,423,710)
10,000
3,379,292
2025
£
2,038,200
2,038,200
2025		 £
(1,198,740)
(119,276)
16,381
(210,049)
3,476,746
(3,231,076)
-
2024
(1,266,014)
£
2,070,800
2024
2,070,800

Groundwork UK would like to thank all its funders and partners. Our work to support communities has benefited significantly from funds provided by the following organisations:

£
Anglian Water Services 27,995
Britsh Gas Trading Ltd 1,083,097
Bupa 612,730
Cadent Foundaton 1,641,351
Cadent Gas Limited 1,081,628
Centrica 154,555
Comic Relief Community Fund (England) 717,712
Deloite 22,900
Department for Digital, Cultural, Media & Sport 22,464,865
Department for Levelling up, Housing & Communites 2,585,775
Energy Resilience Fund 15,000
Energy Saving Trust 525,286
Froneri 85,000
Grosvenor 134,628
Hatch Enterprise 271,359
Home Ofce 868,070
HS2 Limited 3,331,540
Impax Asset Management 80,655
Jones Lang Lasalle Limited 22,400
Morgan Stanley 100,000
Northern Gas Network 622,605
One Stop Stores 304,149
Peoples Post Code Lotery Fund 398,394
Pfzer UK 25,570
Price Waterhouse Coopers 20,190
Segro 134,058
Tesco PLC 10,640,191
The Britord Bridge Trust 10,000
The Natonal Lotery Heritage Fund 1,559,034
Thrive 34,874
Worcester Bosch 12,500
WWF - UK 15,793
West Yorkshire Combined Authority 2,348,423

Financial assets measured at fair value through profit or loss comprise fixed asset investments in a trading portfolio of listed company shares.

These figures are based on invoiced amounts during the financial year.

ADVISERS

THE BOARD OF TRUSTEES

Advisers

Auditors

Crowe U.K. LLP Black Country House Rounds Green Road Oldbury B69 2DG

Bankers

The Co-operative Bank plc PO Box 82 118-120 Colmore Row Birmingham B3 3BA

HSBC 114 High Street Stourbridge DY8 1DZ

Investment Managers

Cazenove Capital 1 London Wall Place London EC2Y 5AU

Solicitors

Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES

The Board of Trustees

The trustees (who are the directors of the company in accordance with the Companies Act 2006) on the date of approval of this report, or who served as trustees at any time during the year reported on, are as follows:

Appointed trustees First appointed Last appointed Retred/resigned
Stuart Bonham December 2019 AGM 2023
Sarah Clarke January 2025
Katrina Cunlife March 2023 AGM 2023
Jef Greenidge March 2019 AGM 2022 Resigned June 2024
Patrick Hughes September 2021 AGM 2024
Margot Madin September 2022 AGM 2022 Resigned January 2025
Antony Nelson March 2019 AGM 2022
James Parkin June 2024 AGM 2024 Resigned May 2025
Nigel Reader July 2021 AGM 2024
Paul Roots March 2019 AGM 2022
Anne-Marie Simpson December 2019 AGM 2023
Andrew Thurston January 2021 AGM 2021
Co-opted trustees First appointed Last appointed Retred/resigned
Faiza Amin September 2019 AGM 2022
Karen Balmer September 2022 AGM 2022
Graham Hartley (Chair) August 2015 AGM 2021 Resigned September 2024
Claire Marshall December 2021 AGM 2022 Resigned April 2025
Oona Muirhead June 2024 AGM 2024
Graham Parry September 2022 AGM 2022 Resigned March 2025
Andrew Thompson March 2025
Jack White September 2019 AGM 2022

Company Secretary

Paul Viles

THE BOARD OF TRUSTEES

Committees of the Board

Chairs’ Committee Chair Federation Executive Team Chair Programmes & Partnerships Chair Finance & Risk Chair

Oona Muirhead Andrew Thompson Anne -Marie Simpson Stuart Bonham

Chief Executive Graham Duxbury

GROUNDWORK

To find out more about Groundwork, please get in touch:

www.groundwork.org.uk

0121 236 8565 info@groundwork.org.uk @groundworkUK /groundworkUK @Groundwork_uk Groundwork UK

Groundwork UK Suite B2, The Walker Building 58 Oxford Street Birmingham, B5 5NR

Published December 2025

Groundwork UK is the operating name of the Federation of Groundwork Trusts, a company limited by guarantee. Company Registration Number: 1900511. Charity Registration No: 291558