FINANCIAL
STATEMENTS
2023-24
CENTRE
POINT
ENDING YOUTH
HOMELESSNESS
11
## **CENTREPOINT SOHO ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2024**
## **CONTENTS**
## **Page**
- **3** Trustees’ report (incorporating the strategic report pages 6 to 51)
- **52** Independent auditor’s report to the members of Centrepoint Soho
- **57** Consolidated statement of financial activities (incorporating an income and expenditure account)
- **58** Consolidated and parent statement of financial position
- **59** Consolidated cash flow statement
- **60** Notes to the financial statements
- **82** Board, officers and advisers
## **TRUSTEES’ REPORT**
The directors, who are also the trustees of the charity, present their annual report and the audited financial statements for the year ended 31 March 2024. In preparing this report, the trustees have complied with the _Housing SORP: 2018 update (Statement of Recommended Practice for registered social housing providers)_ . This report contains the trustees’ report and strategic report, as required by company law.
Centrepoint Soho (Centrepoint) is both a registered charity and a registered provider of social housing and sees both of these areas represented significantly in its activities. The financial statements have been prepared in accordance with Housing SORP 2018. However, aspects of the Charities SORP (FRS102) have been adopted to aid comparability with other registered charities.
Please refer to the accounting policies, on page 60 for further information. A list of the board, officers and advisers can be found on page 82.
3 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **WELCOME FROM SEYI OBAKIN OBE, CHIEF EXECUTIVE OFFICER**
Thank you for taking the time to read and review Centrepoint’s annual report and financial statements for 2023-24.
The aftermath of the COVID-19 pandemic and the continued grinding impact of the cost of living crisis has made for another challenging year. This has had an impact on Centrepoint as an organisation where, like everyone else, our bills and the cost of doing business has risen significantly.
It has also had an impact on young people directly, with even more needing support. Most worryingly, the numbers of young people becoming homeless or at risk of homelessness continues to move in the wrong direction. Our estimate for 2022-23 shows that 136,000 young people approached their local authority for help. That’s 5% more than last year and the equivalent of one young person being made homeless every four minutes.
We know how hard things have been for our supporters as well, so we are immensely grateful for their continued generosity and commitment to ending youth homelessness, even in difficult circumstances. This includes our more than 90,000 regular givers as well as generous corporate partners such as Coventry Building Society, The Co-operative Bank, Selfridges and ASOS. It also includes our newest partner, the Nationwide Building Society. Our partnership with them is part of their Fairer Futures programme, which is designed to tackle some of the biggest issues in society, including youth homelessness.
We are truly grateful to all those who choose to support us financially and we look forward to continuing to achieve great things together.
We were particularly saddened to learn of the passing of Julia Rausing in April of this year. Julia and her husband Hans have been active supporters of Centrepoint and our thoughts are with her family and the Julia and Hans Rausing Trust.
We are also grateful to our magnificent volunteers who continue to support our work in myriad ways that inspire us all. I think particularly last year of Cleve West, the award-winning designer of Centrepoint’s RHS Chelsea Flower Show 2023 garden, supported by Project Giving Back. The festival garden was a powerful metaphor for homelessness, with uprooted trees, demolished buildings and self-seeding plants. It demonstrated how nature can reclaim and heal the scars of a neglected site, much like how Centrepoint helps and supports young people who face homelessness. Volunteers welcomed visitors to the garden – which won a Gold Medal for the Best Construction – throughout the show.
Across the year, our 470 volunteers gave their time to support our work – the equivalent of almost £670,000 of additional resource for Centrepoint. And on top of the Queen Elizabeth II Platinum Jubilee Volunteering Award we received last year, we are proud this year to have been awarded the NCVO Investing in Volunteers quality mark.
Last year, our Patron, HRH Prince William, The Prince of Wales, officially
4 Centrepoint Soho Annual Report and Financial Statements 2023-24
opened Reuben House, our ground-breaking Independent Living Programme’s latest 33 homes in South London. Thanks to the generosity of many supporters, we have been successful in raising considerable funds that we will use to build even more homes over the next few years. But we need to raise even more if we are to reach our ambition of 300 independent living homes for young people by 2027.
This year we were delighted to be part of Prince William and The Royal Foundation’s launch of Homewards, a transformative five-year programme that aims to demonstrate that together, it is possible to end homelessness – making it rare, brief and unrepeated. Centrepoint is a proud sector partner for Homewards and we look forward to working together over coming years.
When we set ourselves the ambitious goal of ending youth homelessness by 2037, we always saw the journey as having three broad phases. This year marks the half way point in the first phase and I’m delighted to say that we are making progress in what is always going to be a marathon, rather than a sprint.
Our work to test approaches that stop the flow of young people into homelessness has gathered pace with projects now up and running in schools in both Manchester and London. The levels of need identified by these five-year pilots has been both startling and sobering. We are now working directly with young people and hope to be able to prove that, by intervening far earlier in their lives and that of their families, we can prevent homelessness at age 16. An initial assessment of the pilots, a collaboration between schools, academia, and youth services, will be published later this year.
We are also working with parties across the UK interested in testing this and other approaches to preventing youth homelessness, and thus have entered a new partnership with the Birmingham Pathfinder project.
Following the opening of Reuben House, our Independent Living Programme is making good progress towards opening more ‘stepping-
stone’ housing for young people, in which rent is pegged at around a third of their income. Our aim is for the model to enter the mainstream. To that end, we aim to provide 300 new homes for single young people in London and Greater Manchester by 2027 and we expect to break ground on a number of new sites this year. We are also delighted to see others already adopting and trusting similar approaches as we believe this has huge potential to enable young people to save and prepare for a successful future.
And we have continued with our multi-year, multi-million pound programme to improve physical environments for young people living in our accommodation services. This year we have completed three major refurbishment works plus smaller improvements in a further 20 services. I’m also delighted that, by setting the property standards bar high, we are influencing other providers to do the same in their accommodation offer.
Working with partners is key, as we will only end youth homelessness by working with others in the voluntary sector and beyond. This includes our more than 100-strong group of Centrepoint Partners across the country and the ‘Plan for the 136k’ collective, which we launched alongside eight other youth homelessness charities, earlier this year. The collective, with the support of over 140 organisations, aims to persuade all political parties to commit to a crossdepartmental strategy for ending youth homelessness.
Today, our founder’s words in 1969 remain as relevant as ever: instead of saying ‘something should be done’ think about ‘what can I do?’. Centrepoint remains committed to action that moves us towards our goal of ending youth homelessness and this report sets out our progress. On that journey, I am personally grateful for everyone who is travelling with us.
Thank you for your support.
**Seyi Obakin OBE Chief Executive Officer**
5 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **YOUTH HOMELESSNESS: THE ISSUE**
**Being homeless is more than just rough sleeping. It means not having a safe place to call home. Twenty per cent of Centrepoint’s residents have slept rough, but a homeless person may be ‘sofa surfing’, going from friend to friend and relying on other people’s kindness to have somewhere to sleep. They may be at risk of homelessness because they are staying in a place where they are not safe.**
But even this is not the whole picture. As of October last year, we know that 136,000 young people have approached their local authority for help. That’s up 5% in just one year as the cost of living crisis has had an impact on people’s lives. The real number of young people experiencing homelessness is likely to be significantly higher.
The most significant cause of youth homelessness remains family or relationship breakdown – where they gave a reason, nearly six out of 10 Centrepoint residents tell us that they left their last home
**136,000 young people have approached their local authority for help.**
because of this. But there are many other causes too. For example, leaving care can be incredibly difficult and too often ends up with young people facing homelessness – 44% of Centrepoint residents are care leavers.
Even when a young person who is experiencing homelessness has found somewhere stable, such as Centrepoint, the challenges do not end for them. Without family and other networks of support, they have to navigate the complexities of society’s systems and structures on their own. For example, welfare benefit rules means they can get penalised for working too much, resulting in a lower rate of benefit. They have to make difficult decisions about how to spend their money. And even if they manage to save enough for a deposit, many private landlords will not rent to them because they have a history of homelessness.
Ending youth homelessness is a huge ambition but it is the right one to set for ourselves. We will only achieve it if we can prevent young people at risk from becoming homeless in the first place; providing great support for those that are homeless and assisting them to move to live independently when they are ready to do so. We know that by helping a young person in these ways, they will have a future in which they can achieve their true full potential.
6 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **OUR VISION**
Youth homelessness is complex and has many triggers, so the threat of homelessness can never be completely removed for young people.
## **HOW WE WILL ACHIEVE OUR VISION**
Our vision to end youth homelessness by 2037 is very ambitious, so we see it as having three phases:
**----- Start of picture text -----**
PHASE 1 PHASE 2
(to 2027) (2027 to 2032)
OUR VISION IS
TO END YOUTH
HOMELESSNESS
PREPARE DISCOVER
BY 2037.
AND AND
DISCOVER AMPLIFY
So, by ending youth
homelessness, we mean:
PHASE 3
Each young person for
whom a temporary place of (2032 to 2037)
The number of young
safety has been provided is
people being made
supported and settled into
homeless is negligible.
a permanent home as soon
as they are ready to live AMPLIFY
There is a quick solution independently. AND
to provide a safe and stable ORCHESTRATE
place to live for every young
person when it happens.
**----- End of picture text -----**
7 Centrepoint Soho Annual Report and Financial Statements 2023-24
This year, three years into delivery, we have taken stock of our progress so far, recommitted to the overall vision and renewed our plan for the remainder of Phase 1, as follows:
**----- Start of picture text -----**
WE WILL WORK TOGETHER AND WITH OTHERS TO:
PREVENT:
SUPPORT:
Ensure those who face
Provide services that enable
homelessness are prevented
us to support young people
from experiencing it by
to have skills, a job and a
ameliorating impending crisis
home as a basis for ending
and find solutions to reduce
homelessness at the
the flow of young people into
individual level.
homelessness.
OUR VISION TO END
YOUTH HOMELESSNESS
BY 2037
OPTIMISE:
AMPLIFY:
Develop the optimum capacity
Spread the learning from our
to deliver our strategy by
programmes outside
building a resiliant
Centrepoint through thought
organisation that is includsive,
leadership and build a wider
efficient, productive and
movement to support the
adaptable, while also pointing
ending of youth homelessness.
and heading in the right
direction.
**----- End of picture text -----**
8 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **ON PREVENT, WE WILL:**
- Improve Centrepoint Helpline capacity to respond effectively to young people in crisis.
- Develop and test potential solutions for preventing youth homelessness from occurring.
- Start to disseminate learning from effective solutions with a view to adoption at local levels.
## **ON SUPPORT, WE WILL:**
- Evolve our services so they are better able to deliver a tailored service – one that enables each young person to gain good health and skills, with the outcome of a job and a home.
- Develop and test support models that would enable us to articulate the optimal range of services effective for helping young people transition from homelessness into a job and a home.
- Develop and demonstrate genuinely affordable ‘routes out’ of homelessness for young people who are ready to live independently, including, but not limited to, the ongoing Independent Living Programme.
## **ON AMPLIFY, WE WILL:**
- Develop a clear evaluation and impact framework for our pilot programmes and support work.
- Build a movement to support the ending of youth homelessness, including executing our campaigning and influencing strategy.
- Build on our pragmatic approach to partnership working throughout the organisation.
## **ON OPTIMISE WE WILL:**
- Refresh the People Strategy with particular focus on workforce planning, leadership development across the organisation and diversity and inclusion at the right levels.
- Develop and execute an Asset Management Strategy.
- Develop and execute a digital transformation programme, including replacement or upgrade of underlying business systems.
- As part of a long term financial strategy, develop and execute a fundraising growth plan that will underpin the financial independence we seek to enable us to execute this strategy and do what is right for young people.
- Build and deliver an effective youth participation function.
- Disseminate learning from these solutions in order to influence local commissioning.
9 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **OUR OBJECTIVES AND ACTIVITIES**
**The following pages highlight some of Centrepoint’s activities during 2023-24.**
## **WHAT WE HAVE ACHIEVED**
## **PREVENTION**
## **Pre-16 prevention pilot**
Two years ago, we began a pilot working in secondary schools to identify children under the age of 16 who are at hidden risk of homelessness. The aim is to support those children and their families ultimately preventing the young people from being at risk of homelessness after they turn 16. The work we are doing in England follows in the footsteps of Llamau’s Upstream Cymru, which was itself modelled on the successful approach of the Geelong Project in Australia.
The project is now operating in five schools in London and Manchester. The approach starts by surveying 11-16 year olds to identify those who may benefit from support. We recently started surveying young people in London and are working on options for referral services based on the needs we identify among the students. We have, so far, completed 2,710 surveys and, in response, support is being provided in three areas:
- **General mentoring** – provided by Centrepoint.
- **Family mediation** – currently provided by Depaul UK in Manchester.
- **Mental health and wellbeing support** – currently provided by Beacon Counselling in Manchester.
A key objective of the project is proving that the approach works. We have commissioned Professor Suzanne Fitzpatrick from Heriot Watt University and Professor Peter Mackie from Cardiff University to evaluate progress, with an initial report being produced in autumn 2024. As well as the project work, we are working closely with partner organisations, Llamau and the Rock Trust, to develop a UK-wide governance group to support the consistent development of the model across the country.
I am thrilled with the data provided and the insight it can provide the school. Not only am I happy with getting the data but the great thing about the project is we are putting something in place to help combat what we are finding and support students… and it’s free.
**Michelle Dean, Vice Principle (Parrswood High School)**
It’s fantastic that Centrepoint have been in [school] supporting our students, we are positive having contact with yourselves is going to be very beneficial for all our young people, it’s going to be really helpful to have more ongoing support/help.
**Nikki Stewart, Head of Nurture (Manchester Enterprise Academy)**
10 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **National Helpline – being there when young people need us the most**
Centrepoint’s national Helpline began operating in 2017 to provide help for young people in crisis. During 2023-24, we significantly increased our capacity and capability to respond to demand from young people. By the end of 2023-24, the Helpline team was answering over 90% of incoming calls and web chats and a total of 5,257 young people were supported over the course of the year.
The Helpline is increasingly dealing with young people with multi-faceted and more complex needs. This often requires follow-up work by the advisers to ensure the young people have received the support they need.
In 2023-24, we also began to test our first ever chatbot – providing basic but tailored advice to young people contacting Centrepoint outside of regular hours. There have been over 1,000 conversations with the chatbot during 2023-24, even though it only launched in January 2024.
**----- Start of picture text -----**
During 2023-24 our
national Helpline
supported 5,257
young people.
**----- End of picture text -----**
## **Preventing and relieving homelessness in Manchester**
Our prevention service in Manchester is commissioned by Manchester City Council. Young people self-refer or are referred by organisations and agencies in Manchester. Once they are connected with us, they are given a full housing and needs assessment. The service then supports young people in reconciling and, where appropriate, returning to the family home, negotiating with landlords where accommodation is at risk and/or securing appropriate accommodation. There is always a focus on ensuring appropriate support is in place to prevent a risk of repeat homelessness.
The number of young people accessing support through the service declined in 2023-24 to 1,560, a reduction of 211 on the preceding year. This change was because we changed our contractual relationship with Manchester City Council whereby we now only work with young people where the Council does not have a statutory responsibility to house them
**----- Start of picture text -----**
1,560
young people
accessed our
prevention service
in Manchester
**----- End of picture text -----**
## **SUPPORT**
## **Support and housing leading to a job and a home**
Every day, we help young people through our supported housing, floating support (including Housing First), rough sleeper and resettlement services.
Even more important than the number of young people we support though, is how we support them. During 2023-24, we have focused on providing psychologically informed environments (PIE) from where we deliver support. This means creating psychologically safe environments that take the emotional needs of young people into account and provide a secure base for them to grow.
Over the past year, we have expanded our PIE team to include an educational psychologist, who supports young people back into education, employment and training alongside our Skills and Employment team. Our colleagues receive PIE training (including 20 learning modules covering a variety of topics) which enables them to deal with people’s complex needs and provides them with the tools to support young people to progress towards a job and a home.
Across 2023-24, we delivered 87 PIE training sessions with 581 attendees, as well as monthly reflective practice sessions and one to one-support sessions for colleagues in services facing challenges with complex cases. We also continue to inform all of Centrepoint’s policies and procedures ensuring that
practice is psychologically informed and to amplify PIE across the youth homelessness sector. Our ambition remains to have the very best service teams who are well trained, well-resourced and receive appropriate support for their own wellbeing.
As well as personal care, this year we have focused on improving physical environments for young people. We have undertaken major refurbishment works across three accommodation services in the London boroughs of Camden, Ealing and Hammersmith and Fulham as part of our multi-year programme to ensure that all environments are psychologically informed by 2027. These were full or partial refurbishments at a cost of around £1.5 million. In addition, a further 20 services have seen smaller improvement works at further cost of around £100,000 and volunteer groups from our corporate partners undertook decorating projects in seven further accommodation services.
By amplifying our Centrepoint Property Standard we have encouraged registered providers of social housing to make improvements to their buildings as well. For example, one of the largest housing associations in South England, Notting Hill Genesis, agreed to refurbish a service building in West London using our refurbishment specification.
On repairs and maintenance, we completed 87% of repairs in Centrepoint-owned properties on time (against our target of 85%). Work on 370 voids was completed during the year with an average turnaround of 14 working days.
A major focus for our service teams during 2023-24 has been preparing for and implementing the new Ofsted-supported accommodation regulations for organisations that accommodate 16 and 17 yearolds in the care of a local authority or leaving care services. We have been working towards accreditation for a significant number of our services, with 23 services registered to date.
We continued to work with local authorities across England in 2023-24. This included the award of eight new services in Lambeth to replace our existing service there. The innovative way in which these services were designed, commissioned and now delivered allows us better to support young people in the borough to achieve the outcome of a job and a home.
**Across 2023-24 we delivered 87 PIE training sessions with 581[attendees]**
12 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **AIM-ing to help more young people**
During 2023-24, Centrepoint launched its new Advice, Information and Money (AIM) services in response to young people’s needs. This is a holistic and easily accessible service offering independent free legal support; financial education and inclusion training; and access to a fund for more young people experiencing food hardship due to the ongoing cost of living crisis. Support in all of these areas increases opportunities for young people to achieve a job and a home.
## **Independent Living Programme – a foundation for the future**
Despite this excellent support offer, the lack of safe, quality housing that is genuinely affordable remains one of the biggest challenges for young people across the UK. Those moving on from supported or specialist accommodation often find themselves in overcrowded or unsafe environments, pushing them back into unsuitable situations that have an impact on their ability to work and contribute towards rent and household bills.
In response to this, we have continued work on our ground-breaking Independent Living Programme to ensure that young people can move on to safe, secure and lasting accommodation. Our goal by 2027 is to build at least 300 homes and prove that this approach effectively supports young people into being able to live independently.
Now in its fourth year, the programme continues to set rents at one third of a young person’s salary.
This allows them to make a step towards full independence while saving for their long term independent home.
Our flagship Independent Living development, Rueben House, was officially opened by HRH the Prince of Wales in June 2023. Prince William, our Patron since 2005, was given a tour of the site, where he visited one of the flats and spent time with residents. He listened to their experiences of moving into Reuben House and heard how the new accommodation will help provide security and stability for young people preparing to move on with their lives.
**We have significantly increased our independent living pipeline of homes in the planning or development stage from 197 to 300**
In 2023-24 we have seen an 87% occupation level for these homes. With good occupancy rates and high demand, we face issues with property availability and meeting the requests for those applying for properties. Nevertheless, we are optimistic that this pressure will ease off as more of our pipeline homes are ready in coming years, and through these models, encourage and persuade other providers to offer similar housing.
## **Health – therapeutic services**
During 2023-24, we implemented changes to our health programmes following a review that we completed in the previous year. This led to focusing our mental health support on psychotherapy and healthy relationships programmes that can be so difficult to access through the NHS.
Through the year, we focused on building a consistent national multidisciplinary offer to all young people in Centrepoint services through three regional teams in London, Manchester and Yorkshire and the North East. Teams of psychotherapists, clinical psychologists and complex case workers are working together to deliver appropriate mental health support, either in-house or through statutory services. We have also retained a national specialist focusing on domestic and relationship abuse among young people. This specialist provided consultation and training on domestic violence issues and risk management to all Centrepoint colleagues.
Not only is our psychotherapy offer delivered by experienced therapists who are trained and specialise in working with young people, but the service is much more flexible than mainstream therapy to suit young people. That includes initial assessments within a week and an open-ended number of sessions based on each person’s needs. During 2023-24, 63% of the young people we worked with reported positive or reliable clinical change from their therapy.
It’s been so amazing working with my healthy relationships adviser and it’s helped me so far in my relationships, and how I view myself – my relationship with myself. It’s a journey, it goes up and down, but I think my healthy relationships adviser is very good at supporting you. They’re magic and each session I have with them I feel like things are better and I’m not used to that.
With the psychotherapy, it’s more intense and I feel more anxious about it. But the psychotherapist is really understanding and I feel very comfortable talking to them. It’s been so amazing, working with them. With psychotherapy, it does take longer for you to see changes in your life as you have to go into your past, so it’s very different to working with my healthy relationships adviser. The fact that I go back to every session just shows me that I have a good therapist, and I’m in good hands. And I will reach my goals that I set for myself.
## **Charlie**
**In total, during 2023-24 57%[ of young people ] leaving Centrepoint services were involved in education, employment and/or training.**
## **Skills and employment – into education and work**
We delivered support in one-to-one settings and small groups, offering careers advice, functional skills (including maths and English), digital skills and a number of vocational courses in areas such as construction, catering and hospitality and horticulture. Other highlights include:
- M’Power is our bespoke programme of accredited learning for young people struggling to engage in education and employment. The programme has been embedded in our Yorkshire services and we plan to widen this to all young people who need it, having seen an increase in the number of young people participating in the programme since 2022-23.
- We began a partnership with Idverde, the UK and Europe’s leading provider of grounds maintenance services and landscape creation projects. This partnership delivers grounds maintenance training and work placements to Centrepoint young people as one of our Get Set Go programmes. Our first small scale programme is now underway and we are looking to grow the partnership in services outside of London.
- In January we launched a new jobs board to connect young people to suitable opportunities and apply directly for tailored roles from partners. This makes over 10,000 jobs available in one place for those who are ready. Young people were involved in the co-design of the site and feedback from them since launch has been extremely positive.
14 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **AMPLIFY**
## **Influencing government policy through quality research**
2023-24 was another year dominated by political uncertainty. This made our influencing work both increasingly challenging and, given the prolonged impact of the cost of living crisis, ever more important.
Over the course of the year, Centrepoint published research reports and policy briefings demonstrating the acute impact of youth homelessness on individuals, society and the economy. This included:
- A report into young people’s access to affordable housing in April ( _Somewhere to Call Home_ ). The report called for greater support for the development of innovative solutions to the housing crisis, such as: Centrepoint’s Independent Living Programme; incentives to develop more social housing split between market rent, affordable and social developments; and building a greater supply of one bedroom and studio social housing.
- A report on the cost of youth homelessness to our society in September ( _Human Costs and Lost Potential: The real cost of youth homelessness_ ). The research estimates that the total annual cost of youth homelessness amounts to more than £8.5 billion, an average of £27,347 for each young homeless person which is equivalent to the average salary of a police officer.
**Our annual Databank**
**report in October (** _**Failure to Act: the scale of youth homelessness in the UK**_ **) showed that 136,000 16-24 year-olds asked their local council for help in 2022-23 because they were homeless or at risk of homelessness.**
- This figure represents a 5% increase compared to the previous year. These growing numbers are reflected in increasing pressures on services. Even more worrying, our research suggests that 67% of cases of homelessness in England were not successfully prevented or dealt with, leaving thousands of young people homeless with nowhere to stay.
**•** A briefing on _Making Work Pay_ in October. Making Work Pay is about the urgent need to address structural inequities in the benefits system that mean young people living in supported housing are regularly unable to work or take on more hours of paid employment because of the risk that they will lose their benefits and become worse off.
- A briefing on the Vagrancy Act and proposed Criminal Justice Bill in early 2024.
- A report on access to, and experiences of, social and private accommodation for homeless young people in January ( _No Expectations: Access to and experiences of social and private accommodation for homeless young people_ ). The research highlighted the shortfall between social housing allocations for young people and the number of young people with priority for social housing and the difficultly that young people have accessing the cheapest 25% of private rented housing in the majority of local authority areas.
We received extensive local and national media coverage of the findings of each of these reports and were able to use this evidence base to frame an important narrative for our policy influencing activity during the year.
In particular, alongside eight other youth homelessness charities, in January 2024, Centrepoint launched the ‘Plan for the 136k’ collective which is calling on all UK political parties to come together and adopt a national strategy to end homelessness. Since its launch, the group has gained the support of over 140 youth and homelessness organisations and stepped up its activity ahead of the 4 July 2024 General Election.
The collective’s campaign also has a public facing element through a parliamentary petition that gained sufficient signatures to trigger a response from the UK government. The petition was delivered to No.10 Downing Street alongside colleagues and
15 Centrepoint Soho Annual Report and Financial Statements 2023-24
young people from New Horizon Youth Centre and Depaul UK. Alongside this, Paula Barker MP, a former shadow minister for homelessness, tabled a parliamentary debate on behalf of the collective which took place on 1 May 2024.
At the time of writing, the ‘Plan for the 136k’ campaign has garnered significant media attention, including coverage from Inside Housing, _The Observer_ , _The Big Issue_ , _Radio 4_ and 24 articles in regional newspapers, as well as advertisements in _the Daily Telegraph_ , _iNews_ , _The Times_ and _The Guardian_ .
## **Partnering with others to end youth homelessness**
Centrepoint knows that, to end youth homelessness, we cannot work in isolation. Strong collaboration and partnerships with key stakeholders in the public, private and voluntary sector will be essential if we are to ensure that, when youth homelessness occurs, it is rare, brief and unrepeated.
In February, members of the Centrepoint Partners network from across the UK came together at our national youth homelessness conference in Coventry. Our strategic partner, Coventry Building Society, sponsored the event which welcomed more than 140 attendees from over 60 organisations including charities, housing associations, funders and local authorities. Thirteen sessions shared insight and best practice on topics such as:
At the heart of the event were our Lived Experience Ambassadors, Sharon, Toni-Ann, Milly and Ben who talked about their experiences and shared honest views of what it is like to be young and homeless, their journeys, successes and challenges.
Through the Centrepoint Partners network, we amplify the voices of homeless young people and give an informed national policy voice to smaller organisations. The network has been actively involved in research on important topics, including the scale and scope of youth homelessness. The evidence from this research has then been used to call and push for change. This harnesses the collective power of the sector and magnifies how youth homelessness should be a priority.
Partnerships are also at the heart of our work on prevention through the pilots we are running with young people under 16 in Manchester and London (see the Prevent section). We are working hand-inhand with partners in those pilots and with charities elsewhere who want to set up similar programmes of their own. We are also working with international partners as a part of an international learning lab, comparing models and lessons learned.
16 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **OPTIMISE**
## **Our people**
We want to reflect the same level of care and consideration we offer to young people to all our colleagues. Just as we focus on equality and respect for young people, we want to match that experience for every colleague at Centrepoint. We want to build a resilient, caring and inclusive organisation, in which each colleague can develop their career, manage their work-life balance, receive recognition and get paid in a fair, consistent and transparent way.
We are striving to make Centrepoint an inclusive organisation, where staff feel comfortable to be their authentic selves. We want to celebrate our differences and appreciate what these can bring.
We appointed an equality, diversity and inclusion (EDI) lead in August 2023. They support our CEOchaired board which meets quarterly to drive forward improvements. To date, we have implemented:
To that end, during 2023-24, we have:
- Undertaken an organisation-wide consultation on pay and reward.
- Transitioned Supported Housing Officers into Support & Progression Officers, who take direct responsibility for enabling young people to achieve a job and a home.
- Developed a programme that enables around 100 of our colleagues to work flexibly to meet the needs of our services and young people, thereby reducing the need to use external locums.
- Commissioned an independent colleague survey to be conducted in May 2024. Results will be published in 2024-25 and will enable us to further understand our culture and instil a continuous improvement way of working.
- A guaranteed interview scheme for candidates from ethnically diverse backgrounds who meet the minimum criteria.
- Inclusive leadership and recruitment training.
## **Technology – mobile working and digital transformation**
During 2023-24, we have continued to support colleagues with greater hybrid working and launched the first stages of our digital transformation programme. Towards the end of 2023-24, this began with providing laptops to all colleagues. Once complete, this will see around 60% of Centrepoint’s workforce issued with mobile kit for the first time. This is a significant investment which allows our colleagues to work in a highly mobile way and reduces the disconnect within our workforce in terms of flexibility and accessibility.
17 Centrepoint Soho Annual Report and Financial Statements 2022-23
## **Volunteering**
Over 2023-24, 470 individuals volunteered their time to support our work, equating to almost £670,000 worth of additional resource. Volunteers included individual community volunteers, students, corporate volunteers, specialists and social work placements. Our volunteers bring diverse skills and in some cases high-value work to both the organisation and the young people we support. This provides invaluable resource that we would otherwise be unable to access.
**93%[ of volunteers stated ] that they would recommend volunteering with Centrepoint to family and friends. One volunteer commented:** _**“great volunteering opportunity with support throughout’’**_ **.**
A survey of volunteers across the last year found that:
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Volunteers rated
Centrepoint’s volunteering Of those taking part in the
opportunities as 8.4 on a scale of survey, 91% of paid colleagues
1-10, with one volunteer finding recognised the value volunteers
Centrepoint to be: “ very committed bring to the organisation and to
as an organisation, with important young people, making them more
and valuable supervision and likely to repeatedly utilise
support in place for me as volunteer resource.
a volunteer ”.
**----- End of picture text -----**
During 2023-24, Centrepoint’s volunteering team worked towards meeting and being awarded the NCVO Investing in Volunteers quality mark. NCVO reviewed our volunteer opportunities, policies, procedures and processes, training offer and support, and supervisions. We were delighted to be officially awarded the accreditation on 1 May 2024.
For the first time, we also developed a Volunteer Review Group – a consultative body of volunteers who support us with key decision making about the future work and development of our volunteer programme. This allows us to not only consult and engage our volunteers as valued members of Centrepoint, but also to further draw on their invaluable skills, knowledge and experience.
## **Fundraising**
Centrepoint would be unable to do all the work it does to end youth homelessness were it not for the support of our donors. We would like to thank all of our donors for their ongoing support. Here are some highlights from our fundraising in 2023-24:
**•** 2023-24 was the first year of our partnership with **Coventry Building Society** who have raised over £1 million to support young people experiencing homelessness. The partnership supports our Helpline, the Coventry Youth Hub delivered with St Basils, and our pre-16 prevention work. It has, so far, helped 99 young people gain employment through our education, training and employment programme. Alongside this, Coventry Building Society staff have volunteered hundreds of hours to redecorate some of our
18 Centrepoint Soho Annual Report and Financial Statements 2023-24
supported accommodation, supported our Skills and Employment team’s ‘JETT to Success’ careers events, and organised numerous fundraising events.
- **The Co-operative Bank** are Centrepoint’s longeststanding corporate partner and have, to date, raised £2.4 million to support homeless young people. Their commitment to fundraising has allowed us to develop and expand services to meet the changing needs of vulnerable and isolated young people. This year, they also launched the ‘Bridge to Banking’ scheme, enabling young people with no fixed address to apply for a bank account. This can help them access benefits, employment and financial independence. They have also supported our Skills and Employment team with work experience and employment workshops for young people. Two young people have since gone on to join the bank as apprentices.
- Since 2017, **Selfridges** and Centrepoint have built a lasting and transformative partnership but this year, Selfridges’ achievements went even further with new customer facing campaigns, such as ‘Selfridges Unlocked’, increasing their annual corporate donation, and taking part in more staff fundraising and volunteering than ever. In total, Selfridges raised £708,000 – almost tripling their previous annual donation total.
total of 882. We are also very grateful for **Sedulo** who contributed gifts for the children of young people supported by Centrepoint, and donations from **Cosmetic Executive Women** led by Jo Fairly and Sharron Lowe who provided cosmetics to young people at all services across the country.
- Our annual Sleep Out event has grown and diversified. In 2023-24 we held two London events with our corporate event, sponsored by **Barratt London** and **Lomond** . We also held a Sleep Out at Old Trafford, in partnership with the **Manchester United Foundation** . Numerous individuals, schools, scout and guide groups, football clubs and companies have organised their own Sleep Out events in homes, workplaces and community centres. In total, these events raised £430,000.
**Increasing numbers of supporters took part in challenge events in aid of Centrepoint, raising £210,000[.]**
- At Christmas, many young people experiencing homelessness can feel alone. Selfridges kindly donated funds to cover the cost of a gift for every young person supported by Centrepoint – a
- On 10 October 2023, we ran our first fundraising event to coincide with World Homeless Day. Supporters set themselves personal challenges to take part in over 10 days, raising £22,000.
- **The Marandi Foundation** who have supported our employment and skills work across the country
- **Ernst Hecht Charitable Foundation** and **Story of Christmas** who have supported our planned maintenance programme in London.
- Celebrities and supporters competed in the maintenance programme in London. annual Ultimate Pub Quiz to raise £70,000 for our work to support young people experiencing **• The National Lottery Community Fund** who have homelessness. supported a bespoke therapy space for our residents in Barnsley, and provided vital support
- **•** Our Christmas appeal raised just under £3 million to our core costs.
- Our Christmas appeal raised just under £3 million to our core costs. thanks to the support of our donors. For the first time this year, Centrepoint had outdoor advertising **• Barnsley Council** who have provided our young space at Outernet London and on the London people in Barnsley with support for essentials, Underground which amplified our messaging. such as food, clothing and utilities.
- **London Community Foundation** who have provided support for essentials for young people across London.
We are so appreciative of all of our supporters who run, cycle, walk, sleep out and organise their own creative events in support of ending youth homelessness.
And a huge thank you to each of our generous major donors and philanthropists who have contributed significant funds, time and networks to Centrepoint over 2023-24. We are immensely grateful to have your support which has a huge impact.
We are grateful too for the support of our high value partners across all areas of our work. We want to extend our special thanks to the following trusts, foundations and companies:
- **The Thompson Family Charitable Trust** who have generously continued their support of our psychotherapy work in London.
- Our particular thanks go to our Global Ambassador, **Debra Reuben** , for her wide-ranging support of young people through our work.
- **Keaton Emery Memorial Foundation** who have **•** The Independent Living Growth Board members supported the work of our Complex Case – **Javad Marandi** OBE (Co-Chair), **Jamie Reuben** Workers, supporting some of the most vulnerable (Co-Chair), **Niamh O’Connor** , **Bek Seeley** , **Barry** young people in Manchester. **Townsley** CBE, **Mark Petterson** , **Michael Rahamim** and **Tom Wood** (Trustee representative).
- **The Julia and Hans Rausing Trust** for their extraordinary commitment to Centrepoint and homeless young people. Centrepoint was saddened to learn of the passing of Julia Rausing in April 2024. Julia and her husband Hans Rausing have been active supporters of Centrepoint, including our recent Independent Living Programme. Our thoughts are with the Trust and her family.
- **ASOS Foundation** who have hit the £2 million donation milestone and continued to offer pro-bono support to help us innovate and improve our services.
- **Barratt London** for donating over £50,500 by taking part and being headline sponsors of our Corporate Sleep Out event.
- **Coventry Building Society** who have raised over £1 million to support our prevention programme, national Helpline, skills and employment team and the Coventry Youth Hub, with our local delivery partner St Basils.
- **The Co-operative Bank** who reached a fundraising milestone of £2.4 million and helped young people through their ‘Bridge to Banking’ initiative and support for our skills and employment programme.
- **Gleeson Homes** for raising £45,000 at their gala event.
20 Centrepoint Soho Annual Report and Financial Statements 2023-24
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- **Royal Bank of Canada** (RBC) who donated £129,725 to help homeless young people. Centrepoint were particularly honoured to be chosen to benefit from RBC Charity Day for the Kids for a second year.
- **Selfridges** who went above and beyond to triple their previous annual commitment and donate over £708,000.
- **Together Money** who have donated £250,000 which will fund two independent living flats at our Gorton site in Manchester.
- **Safe Haven London** who supported our Independent Living match funding appeal and for their ongoing support finding development opportunities for more homes.
- **Project Giving Back** who supported the Centrepoint garden at the RHS Chelsea Flower Show 2023.
## **APPROACH TO FUNDRAISING**
**Centrepoint works with a number of agencies and suppliers that enable us to deliver our campaigns and other activities. These partnerships are essential to raising the income needed to fund our vital work with young people. We do not have the resources in-house to deliver all of these activities, so it is much more cost-effective for us to work with third parties for certain aspects of our work.**
- **Arthur London** : We work with Arthur on the strategic delivery of our individual giving and legacy programmes. They support us with the creative execution of all of our appeals for cash, regular giving and legacy support. With their support, our Individual Giving programme raised £23 million in 2023-24.
- **JAA** : We work with JAA to plan and buy all of our media space which allows us to promote and engage Centrepoint to the public. The agency supports us with a diverse media mix which includes TV, digital, press and inserts.
- **REAL and One Sixty Fundraising** : These agencies deliver our dialogue activity. After eight years of partnership, both agencies have developed an in-depth understanding of Centrepoint resulting in cost-effective campaigns for recruiting loyal and engaged supporters.
- **Signal** : We work with Signal on all of our print requirements, from our appeals to our welcome materials and supporter newsletters.
- **Ethicall** : Ethicall manage our telemarketing campaigns. This includes thanking our new supporters and asking them for additional support, where appropriate.
- **Woods Valldata** : Woods Valldata are our fulfilment agency, processing donations and thanking both existing and new supporters. Woods Valldata process all donations from our cash appeals, as well as TV campaigns. In 2023-24, they took over 8,000 calls from supporters and people making enquiries about our work.
- **Voice Solutions T/A 8x8** : 8x8 are our cloud-based phone contact centre. Having a contact centre allows our Supporter Care team to take calls from home and in the office with ease.
- **Run for Charity** : We buy challenge event places on an ad-hoc basis, allowing supporters to choose the events they’re keen to participate in to raise money for Centrepoint.
22 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **Fundraising practice**
Centrepoint always follows best practice and complies with all fundraising regulations. We are members of all fundraising regulatory bodies, including the Fundraising Regulator, Chartered Institute of Fundraising, the Data & Marketing Association, and the Information Commissioner’s Office.
We have never failed to comply with the Fundraising Regulator’s Code of Fundraising Practice. All of our partner agencies adhere to their relevant regulations.
We have a clear set of due diligence guidelines that we monitor our agencies by on a regular basis. All of our agencies have data protection and vulnerable person and complaints policies in place.
## **How we monitor fundraising activity**
Centrepoint and the agencies we work with monitor our fundraising activity through:
- Regular meetings.
- Performance monitoring.
- Training.
- Mystery shopping.
- Observer agency training.
- Shadowing.
- Call listening.
- Complaints monitoring.
- Keeping senior management and trustees informed of our performance.
- Regular consultations with other charities and regulatory bodies.
- Due diligence clauses in contracts.
- Regular surveys with our supporters.
## **Complaints**
We received 114 fundraising complaints in 2023-24 in comparison to 78 in 2022-23. Public fundraising accounted for 74 (65%) of the overall complaints received. We recruited more than 40,000 new donors through public fundraising in 2023-24 so the rate of complaints is low. We believe that this is a result of the great work of our Acquisition team in training our fundraisers to a very high standard. However, we are not complacent and will be working to be even better.
## **Protecting vulnerable people when fundraising**
All of our partner agencies that communicate with new or existing supporters have a vulnerable person policy in place. Before working with any agency, we review their policy. With face-to-face and door-todoor agencies, we attend all fundraiser training that covers talking to vulnerable people.
## **Our supporter promise: our commitment to you**
## **We value your DONATION**
## **We value RESPECT**
- Make sure we’re as cost-effective as possible, so your donation can have the greatest impact for homeless young people.
- We will make it clear and easy for you to choose how you want to hear from us. If you tell us you don’t want to hear from us again, or want to hear from us less, we will respect your wishes.
## **We value TRANSPARENCY and HONESTY**
- If we call to speak with you, we will make sure
- **•** We are open and honest about what we do and during the call that you’re happy hearing from us where your money goes and publish this in this way. information regularly. We tell the truth and do not exaggerate. **We will protect your PRIVACY and personal DATA**
- Where we ask a third party to fundraise on our behalf, we will ensure this relationship and the **•** Your donations are completely personal to you. financial arrangement are transparent and that We adhere to the UK’s General Data Protection they follow our fundraising principles. Regulation and the Privacy and Electronic Communications Regulations.
## **We value ACCOUNTABILITY**
- We’ll never sell or swap your details. Any
- **•** If you’re unhappy with our fundraising, we’d like information you give us will be kept confidential. to hear about it – in fact we see it as an Where we ask a third party to fundraise on our opportunity to learn and improve. behalf, we will ensure they follow the Code of Fundraising Practice.
- If people acting on our behalf fail to meet our high standards, we’ll always act quickly to take appropriate action.
**You can find more information about how we work with supporters on our website.**
24 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **FUTURE PLANS**
**When we set our vision to end youth homelessness by 2037, we also created a strategy for the first phase from 2021-26. In the three years since then, the world has changed significantly but the challenge remains the same. The threat of homelessness can never be entirely removed but we still believe it is possible to significantly reduce the number of young people facing homelessness; have a clear, accessible, and effective pathway for young people at the point of crisis; and help young people move on successfully into settled accommodation when they are ready.**
The Board of Trustees took stock of progress on our journey during 2023-24 and concluded that we should retain our vision to end youth homelessness by 2037.
We are also retaining our four strategic themes of **Support** , **Amplify** , **Prevent** and **Optimise** . However, we have refreshed the priority activities under each. These were set out earlier in the ‘How we will achieve our vision’ section on page 7.
Transformational change on the scale we propose is rarely linear. Reflecting the external shocks of the past few years and the impact they have had in constraining our resources, executive capacity, and political bandwidth for change, we are extending the first phase of delivering our strategy to 2027.
During the remainder of Phase 1, we will focus on four priority areas under the themes:
**developing and demonstrating genuinely affordable routes out of homelessness for young people**
**demonstrating and amplifying what works in preventing youth homelessness**
**campaigning to influence others to support ending youth homelessness and adopt solutions that have been proven to be effective**
**creating a healthy organisation with a modern and adaptable infrastructure by investing in people and processes.**
As when we set out on this journey, Centrepoint cannot end youth homelessness alone – it can only be achieved by organisations and individuals working together to achieve systemic change. As the UK’s leading youth homelessness charity, Centrepoint will continue to spearhead the endeavour to end youth homelessness by 2037.
25 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **FINANCIAL REVIEW**
## **Income**
## **Income for the year ending 31 March 2024 was**
**£60.0 million** , an increase of £12.3 million compared to 2022-23 in which our total income was £47.7 million. The largest impact has been on our income from donations. We received £8.9 million in donations for our Independent Living capital appeal, an increase of £8.1 million on 2022-23.
Income from charitable activities was £18.5 million which is higher than 2022-23 by £1.3 million. Income from rent and service charges amounted to £8.5 million, an increase of £0.5 million on 2022-23. Income from supported housing grants was £9.1 million (2023: £8.3 million) and income from other grants and contracts, at £0.9 million, was the same as last year (2023: £0.9 million).
## **Expenditure**
**Expenditure during the year ending 31 March 2024 was £51.7 million** , an increase of £4.2 million from 2022-23 (2023: £47.5 million).
Expenditure on charitable activities was £37.1 million for 2023-24 and reflects an increase of £3.4 million from the previous year (2023: £33.7 million). Investment in support and housing was increased by £4.3 million (2023: £26.1 million) to £30.4 million in 2023-24 and reflects increased costs of utilities and investment in our planned maintenance programme.
The cost of raising donations and legacies was £14.7 million and, compared with the previous year (2023: £13.8 million), was an increase of £0.9 million. Expenditure on support and governance costs for 2023-24 was £4.7 million and was consistent with the previous year.
## **Net income**
**The net income for the year was £8.3 million** and is £8.1 million more than the prior year (2023: £0.2 million). As noted above, this year, our net income includes an increase in donations towards our Independent Living capital appeal.
## **Statement of financial position and cash flow**
The statement of financial position and cash flow remains strong, with net assets at £51.7 million and net current assets at £32.5 million. Cash and cash equivalents totalled £32.1 million. We invested £1.1 million in our fixed assets, including property for young people. The working capital ratio at year-end was 5.77:1 (2023: 4.38:1). The working capital ratio is a measure of liquidity, showing Centrepoint’s ability to meet its payment obligations.
## **Value for money**
This report outlines our approach to value for money (VfM). It sets out what we have achieved over the last financial year to make sure we have achieved the outcomes required under the Regulator of Social Housing’s (RSH) Value for Money Standard and Code of Practice and get the most out of our resources. Every year, the key decision taken by the Board is to approve our business plan, long term financial plan and budget. This sets the framework for Centrepoint’s operations.
26 Centrepoint Soho Annual Report and Financial Statements 2023-24
Centrepoint has a clear framework for achieving VfM, incorporating the following:
## **1 APPROACH AGREED BY THE BOARD TO ACHIEVE VFM IN MEETING CENTREPOINT’S STRATEGIC OBJECTIVES AND DEMONSTRATE DELIVERY OF VFM TO STAKEHOLDERS**
Our business planning, decision-making process and strategy for VfM are designed to work together to obtain the best outcomes for young people. VfM is an integral part of all of our planning, from our strategic plan, business plan, and team plans, to our individual objectives. This is not just about cost savings – it is about getting the most from our money for young people.
Our approach to VfM will:
- Support our vision, mission and strategic objectives.
- Provide a range of services that our stakeholders want.
- Achieve and maintain standards of quality and cost which position Centrepoint among the top performers in our sector.
- Adopt recognised good practice, where appropriate.
- Seek out better ways of performing.
- Maximise the use of our resources to provide homes for young people.
- Make the most efficient use of internal and external resources.
- Maximise our social value.
## **2 DECISIONS ABOUT HOW WE USE OUR RESOURCES TO DELIVER STRATEGIC OBJECTIVES**
Centrepoint’s strategy to 2027 outlines our strategic choices:
- **Support** those young people who become homeless by delivering exemplary and innovative services that lead to a home and a job.
- **Amplify** the voices of young people experiencing homelessness, promoting solutions that break the youth homelessness cycle so that they can be undertaken at scale.
- **Prevent** those young people who face immediate homelessness from experiencing it.
- **Optimise** the way that we work to build the optimum capacity needed to deliver this strategy.
Our resources are aligned to achieve the objectives of our strategy, which also contributes to achieving our overall vision to end youth homelessness.
The Board has approved relevant strategies and oversees their implementation through relevant Board committees and the Senior Executive Team (SET). The strategies inform our objectives and priorities for the year and we remain focused on delivering our overall organisational objectives.
In this report, we outline how we have performed against our 2023-24 plans. These include:
- We resolved 86% of services complaints on time (2023: 74%).
- We have continued to improve our repairs service with 80% (2023: 74%) of repairs in 2023-24 being completed well and to deadline. This comprises 87% in Centrepoint owned properties and 67% in properties owned by other providers.
- We continued our programme of retendering key procurement activities to ensure good quality at affordable prices.
- We continued with our procurement strategy, which is aligned to our organisation’s overall strategy. This will make sure we have the best VfM at the same time as ensuring robust commercial practices, fiscal compliance and adherence to all relevant regulation.
- Our measurable success is based on agreeing a budget for maintenance, utilities, furnishings, starter packs, white goods, stationery and insurance.
- Our reinvestment in housing units has decreased from 8.6% in 2022-23 to 2.7%. This expenditure is in line with what we had planned for the year.
- Maximise opportunities through procurement.
- Ensure regulatory compliance.
- Involve our young people in decision-making.
- Deliver excellent performance and satisfy young people.
- Continuing to develop Centrepoint’s operating model, which will help us to deliver the outcomes of a job and a home for every young person resident with us. This has enhanced our use of
27 Centrepoint Soho Annual Report and Financial Statements 2023-24
resources and outcomes for young people by reducing administrative tasks, streamlining business processes, supporting finance and IT systems and improving the organisation’s overall efficiency.
- Fundraising return on investment increased from £2.16 in 2022-23, per pound invested, to £2.83 in 2023-24. This is in part due to the success of the Independent Living capital appeal.
- The number of our accommodation units decreased in 2023-24 from 880 to 832, mainly due to the closure of an 80-bed hostel in Lambeth.
- The Helpline supported 5,257 young people during 2023-24 (2023: 7,581). While this reduction is significant, we have seen a large increase in both the number of out of scope calls received and more complex support needs of those using the service, often resulting in much longer calls and more follow up work. The number of contacts has increased to 16,127 (2022-2023 14,581).
- We increased our influencing work at both a local and national level by being involved in research and lobbying, through local media coverage and actions aimed at raising public awareness.
## **Through our strategic objectives, we articulate our strategy for delivering homes that meet a range of needs**
At the end of the financial year, we had the capacity to support 832 young people in supported housing and general needs accommodation. This included 681 bed spaces in London and 151 bed spaces in regions outside of London, including Barnsley, Bradford, Manchester and Sunderland.
We have been cementing our partnerships with local authorities and the property and construction sector to build self-contained, one-bedroom units of accommodation for single young people for our Independent Living Programme. We currently have 50 homes for this pilot programme and more in the pipeline. This unique pilot offers self-contained living at rents pegged at one third of a young person’s earnings.
Alongside our completed properties, we have a number of other developments (new builds and refurbishments) planned in London and Greater Manchester. We have an extended development pipeline of potentially over 300 new homes and an agreed strategy and roadmap to deliver the remaining homes. The Independent Living Programme now has a working Growth Board which comprises senior professionals, investors and developers from the property sector. They will support the fundraising activities we need to raise £35 million to meet our target of building 300 homes.
## **3 ENSURING THAT OPTIMAL BENEFIT IS DERIVED FROM RESOURCES AND ASSETS, AND OPTIMISING ECONOMY, EFFICIENCY AND EFFECTIVENESS IN THE DELIVERY OF OUR STRATEGIC OBJECTIVES**
This report covers our aim to work collaboratively, harnessing the innovation and creativity of our staff, young people and stakeholders to improve our economy, efficiency and effectiveness.
Our VfM performance is measured by the Board against targets set under the key elements of economy, efficiency and effectiveness. The measures below are a combination of Centrepoint’s measures and those required by the RSH. The RSH’s metrics are designed for social housing. However, what Centrepoint delivers is wider than this. It includes health, skills and employability, prevention, Helpline, partnering and policy and influencing work. The metrics in bold below are the seven required by the RSH.
## **Economy:**
- This is about minimising the cost of inputs for an activity (‘doing things at the right cost’). We are therefore careful with how we use resources to save expense, time or effort. This is monitored through quarterly management accounts, procurement exercises, budget proposals and benchmarking results.
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2023-24 2023-24 target 2022-23
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||**2023-24**|**2023-24 target**|**2022-23**|
|---|---|---|---|
|||||
|Fundraising return on investment1|£2.83|£2.50|£2.16|
|Business support costs2|9%|9%|10%|
|Void loss3|12%|12%|12%|
|Cost per young person worked with (£’000)4|£2.67|£2.64|£2.06|
|**Headline social housing cost per unit (£’000)**5|**£35.86**|**£32.81**|**£29.13**|
- Centrepoint’s cost per unit of £35.86 reflects the increased cost of supported housing, especially during the energy crisis in 2023-24, and the level of support we provide to the young people in our care. Increased energy costs impacted on the performance for 2023-24. Centrepoint is ambitious for young people and we invest to provide exemplar services. This includes psychologically informed environments (PIE), investing in not only the physical environment but in the staff providing support.
**1. Fundraising return on investment** – this metric looks at how much income is generated for every £1 spent.
**2. Business support costs** – this metric looks at the support costs as a percentage of the total cost.
**3. Void loss** – this metric looks at the voids as a percentage of the gross rental income.
**4. Cost per young person worked with** – The calculation takes the total charitable expenditure divided by the number of young people worked with.
**5. Headline social housing cost** – this metric looks at the cost per unit of the social housing expenditure as defined by the RSH.
29 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **Efficiency:**
- This is a measure of productivity (‘doing things the right way’). Therefore, we strive to deliver the same level of service for less expense, time or effort.
- Efficiency is measured through accreditations, external ‘health checks’, tenant scrutiny reports and a suite of quarterly performance reports.
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2023-24 2023-24 target 2022-23
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|||**2023-24**|**2023-24 target**|**2022-23**|
|---|---|---|---|---|
||||||
|Repairs completed on time %||80.0%|80.0%|74.2%|
|**Reinvestment %6**||**2.7%**|**2.7%**|**8.6%**|
|**Operating margin %7**|Overall **8**|**13.8%**|**2.0%**|**0.4%**|
||social housing
letting|**(70.1%)**|**(62.9%)**|**(55.6%)**|
|**Return on capital employed9**||**13.1%**|**2.0%**|**0.4%**|
- The **reinvestment** in housing units has decreased from 8.6% in 2022-23 to 2.7% and was in line with target. Centrepoint’s performance of 2.7% reinvestment in existing stock in 2023-24 is above the RSH’s 2023 global accounts median of 1.5% and in line with our expectations for the year. The expenditure in the year is in line with our planned expenditure in respect of Independent Living.
- Centrepoint’s overall **operating margin** is higher this year, at 13.8%, compared to 0.4% in 2022-23 and exceeds our target of 2%. This is due to the fundraising capital appeal for the Independent Living Programme.
- Centrepoint’s **operating margin for social housing letting** was a 70.1% loss which was above our target of a 62.9% loss and last year (2023: 55.6% loss). The operating margin for social housing is much lower than the RSH’s 2023 global accounts of 21.5%. This is because running costs for supported housing are higher and we provide additional support to young people. Locum usage, void loss, paying for utilities and maintenance have continued to have an impact on our operating loss in 2023-24.
- Centrepoint’s **return on capital** employed is higher this year at 13.1% compared to 0.4% in 2022-23. The metric, as per the RSH’s 2023 global accounts, is 2%. The success of the Independent Living capital appeal has had a positive impact on the return on capital employed.
- Centrepoint has no debt and therefore there is no data for gearing and EBITDA MRI interest cover.
**6. Reinvestment** % - this metric looks at the investment in properties (existing stock as well as new supply) as a percentage of the value of total properties held.
**7. Operating margin** % demonstrates the profitability of operating assets before exceptional expenses are taken into account. Our purpose and objectives, including our social objectives, means we have lower margins than average.
## **8. Net of surplus on property disposal**
**9. Return on capital** employedmetric compares operating surplus to total assets, less current liabilities to assess the efficient investment of capital resources.
**10. Earnings before interest, tax, depreciation, amortisation, major repairs** included (EBITDA MRI) interest cover %. The EBITDA MRI interest cover % in measure is a key indicator for liquidity and investment capacity.
30 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **Effectiveness:**
- This is a measure of the extent to which intended outcomes are achieved (‘doing the right things’). For Centrepoint, outcomes are focused on helping young people to achieve a job and a home.
- This is accomplished through growing the resources available to us so that we can do more with every pound we invest.
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2023-24 2023-24 target 2023-23
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||**2023-24**|**2023-24 target**|**2023-23**|
|---|---|---|---|
|||||
|Number ofyoung people that we worked with|13,875|NA|16,372|
|Young people in education, employment or training (EET) when they
left Centrepoint|54%|70%|57%|
|Young people receiving support from the psychotherapy and mental
health team had a successful or partially successful period of support|79%|75%|86%|
|Young people’s satisfaction with our services|**79%**|**90%**|**86%**|
|**New supply delivered %(social housing units) 11**|5%|4%|6%|
- The **new supply delivered** is above target at 5%, compared to the target of 4%. This performance is ahead of the RSH group accounts median of 0%.
- The total number of young people we have supported has decreased from 16,372 to 13,875, with particular decreases in our Manchester prevention work and through our Helpline (as explained in those sections).
## **4 BENCHMARKING OUR PERFORMANCE AGAINST OTHER ORGANISATIONS DELIVERING SIMILAR SERVICES**
We complete VfM reviews of our activities, including:
- Defining what the outcomes are.
- Calculating the cost per outcome.
- Assessing how we can do things better and more efficiently.
- Benchmarking our services to understand their strengths and weaknesses.
- Improving our IT infrastructure to support the charity.
**11. The new supply delivered** % metric sets out the number of new social housing and non-social housing units that have been acquired or developed in the year as a proportion of total social housing units and non-social housing units managed at period end.
31 Centrepoint Soho Annual Report and Financial Statements 2023-24
We recognise the importance of comparing our performance with others and our activities are benchmarked in several different ways. Centrepoint is an active member of a benchmarking group with other homelessness organisations who provide supported housing.
We use the benchmarking data to inform our housing targets, being mindful that the people we support – young people predominantly in supported housing - have lives that can be more challenging than other general needs clients.
The last time we benchmarked housing management data was in 2020-21, with six other peers. Here are the areas where benchmarking tells us that we perform relatively well compared to our peers:
**----- Start of picture text -----**
2023-24 2020-21 peer results
Centrepoint Centrepoint Group mean Group median
**----- End of picture text -----**
||**2023-24**
**Centrepoint**|**2020-21 peer results**
**Centrepoint**
**Group mean**
**Group median**|**2020-21 peer results**
**Centrepoint**
**Group mean**
**Group median**|**2020-21 peer results**
**Centrepoint**
**Group mean**
**Group median**|
|---|---|---|---|---|
||||||
|% ofpeople who left services known destinations|94%|96%|83%|82%|
|% of clients who abandoned services|2%|1%|4%|3%|
|% of formal complaints that were responded to
within target|86%|72%|73%|72%|
|% of complainants byclients supported|7%|10%|7%|7%|
Here are the areas where benchmarking shows us that there is room for improvement:
||**2023-24**|**2020-21 peer results**|**2020-21 peer results**|**2020-21 peer results**|
|---|---|---|---|---|
||**Centrepoint**|
**Centrepoint**
**Group mean**
**Group median**|||
|% of all repairs completed to deadline|80%|73%|89%|92%|
|% of bed nights empty per total bed nights|11%|8%|6%|6%|
|Void loss as % of annual rent due|12%|9%|7%|6%|
|Current tenant arrears as % of annual gross rental
income|14%|8%|7%|8%|
|Former tenant arrears as % of annual gross rental
income|9%|7%|4%|5%|
|Bad debt written off|8%|4%|2%|2%|
|% of departures which were evictions|11%|6%|8%|7%|
32 Centrepoint Soho Annual Report and Financial Statements 2023-24
**Repairs that were completed on time**
- In 2023-24, our performance was in line with the target we set, with 80% of repairs completed on time. Following our satisfaction survey with young people, we have put considerable work into improving our property management and increasing the number of repairs that we complete and tenders we have undertaken. We will continue to focus on improving how we deal with repairs and delivering our planned maintenance programme.
## **Complaints that we responded to on time**
- Our response to complaints has improved as a result of continued focus within the organisation. We provide training, including an enhanced induction, and support staff to make sure complaints are resolved on a timely basis.
- We have also issued an updated complaints policy and procedure for staff and a monitoring dashboard so they can manage them more efficiently.
## **Void loss**
- Our void loss in 2023-24 was 12%, in line with 2022-23. We have a working group to review and make improvements to this area. We will continue to work with contractors to reduce turnaround periods.
## **Rent collection**
- We continue to have high arrears from current
and former tenants and as a percentage of gross rental income, ours is behind our peers. Our client group makes management of rent collection challenging.
- We continue to develop alternative rent payment options.
- We continue to provide ongoing training to key workers to support and advise young people on welfare benefits and help them with managing finances.
## **Ensuring that performance is managed and monitored**
- We have achieved the following through procurement activity, focusing on quality and price:
- Run a tender for concierge.
- Run a tender for locums.
- Run a tender for print services for individual giving.
- Run tenders for three other areas.
Our planning process starts with our strategic plan and identifies the direction in which we are heading. The business plan and long term financial plan show how we will achieve our goals and what they will cost. During the annual budget process, resources are allocated based on the business plan and the long term financial plan. We also consult individual teamwork plans, so all teams are working together to achieve efficiencies alongside our strategic objectives. We have policies and procedures in place that guide our staff in their day-to-day activities. For example, our procurement policy and procedure, alongside
our financial regulations and delegations, guide staff on purchasing decisions and the interconnection of quality and price.
We are committed to getting feedback from young people through regular surveys and resident meetings. This year, our Young People Involvement programme enabled us to get their feedback, and support them to shape and influence our services.
We publish evidence in the financial statements to enable our stakeholders to understand:
- Performance against our own VfM targets and any metrics set out by our regulator, and how that performance compares to peers.
- Measurable plans to address any areas of underperformance, including clearly stating any areas where improvements would not be appropriate, and the rationale for this.
The following supports our commitment to young people:
- Young people who have attended senior management meetings to discuss any issues or complaints that they have.
- The number of young people we work with and bed spaces we own or manage. We have plans to add 300 bed spaces. We have also invested in apprenticeships, traineeships and developing young people’s functional skills. This will help us to get more young people into education, employment and training.
33 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **5 EFFECTIVENESS PLANS FOR 2024-25**
We shall address areas of underperformance to improve VfM in these areas:
- Keep our complaints process under review to maintain/increase the number of complaints being resolved on time. We will continue to embed our revised complaints policy and procedure and use a complaints dashboard on our internal system.
- Review our repairs service to ensure repairs are completed well and to deadline. We have improved the number of repairs that we carry out but need to complete them within agreed timeframes. Our investment in a planned maintenance programme will improve this. After going through a tender process, we have contracts with contractors to complete repairs work.
- Continue our programme of retendering key procurement activities to bring down the costs of goods and services so savings can be passed onto young people in the form of reduced rent and/or service charges.
- Continue with our procurement strategy, which is aligned to our organisation’s overall strategy. This will make sure we have the best VfM at the same time as ensuring robust commercial practices, fiscal compliance and adherence to all relevant regulation.
- Whenever possible, young people will be involved in our procurement process, particularly to specify or contribute to specifications for goods and services that have a direct impact on them.
- Our measurable success will be improved by agreeing a budget for maintenance, utilities, furnishings, starter packs, white goods, stationery and insurance.
We will continue our work to ensure we have a positive impact on the lives of the young people we support. Over the next year, we plan to review our approach to outcomes and impact so we can better demonstrate the effectiveness and value of our interventions. We will also review our approach to moving on and resettlement so we can do more to help young people move on to live independently.
Developing Centrepoint’s operating model will help us to deliver our immediate mission: a job and a home for every young person. It will reduce administrative tasks, and improve performance management and the experience and outcomes of young people.
Centrepoint’s operating model focuses on ensuring that every young person has access to the opportunities that they need to achieve a job and a home. We have continued to invest in prevention, housing, health, skills and employment, and life skills services to meet the needs of young people.
We have accelerated the work to make Centrepoint a psychologically-informed environment. This
means services have been designed to take the psychological and emotional needs of young people into account. Reflective practice is now offered to professionals working in every Centrepoint service. We have started to offer training in this and make changes to the physical environment of services.
We want to build on our success and learn from experiences to help us fulfil our vision. That means making sure young people are involved with every team and in all aspects of our strategy.
## **How the Board has gained assurance**
Our Board receives regular reports from management on:
- Performance against key strategic targets.
- Financial information.
- Internal audits.
- Stakeholder feedback.
- External reviews.
34 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **Investment policy**
We hold our investments to earn revenue on designated and restricted funds until they are required. We also hold reserves for any future shortfall in income to ensure we can continue to provide an uninterrupted high quality service to young people. Our policy is to hold investments in cash on a short term basis and short-dated UK gilts/ treasury bills to ensure funds are readily available.
## **Reserves**
We hold reserves to make sure we can provide uninterrupted exemplar services to young people. This includes developing new homes, keeping their homes in a good state of repair and continuing to campaign on their behalf to influence public policy appropriately.
Through its Resources Committee, the Board annually reviews the minimum level of reserves it needs to continue activities in the event of financial difficulties. The review takes account of the risks attached to all categories of our income and expenditure. Based on this review, the Board has set a target for achieving general reserves (ie free reserves) of at least £5.5 million (2023: £5.4 million).
This includes £17.6 million already invested in fixed assets (net of social housing grant) which is predominantly properties where young people live, and £7 million set aside to invest in property, including new housing and safe spaces for young people. These funds will be used to purchase
**At the end of 31 March 2024, our unrestricted reserves stood at £35.8 million, of which £29.5 million has been designated for various essential activities.**
properties to help young people move to independent living. In previous years, trustees designated a further £4.9 million to advance the six-year strategy to end youth homelessness. This included capital projects for an extensive planned maintenance programme, digital strategy for young people, prevention, campaigning and capacity building.
The remaining £6.3 million of our unrestricted reserves is held in general reserves as part of our financial management and planning. This funding will ensure we maintain essential services for young people in the event of financial difficulties or an unplanned setback. This is above the £5.5 million target set by our Board, but within the tolerance allowed by our reserves policy.
Transfers between funds primarily represent the designation of funds by the trustees for use for specific purposes and fixed assets purchased through restricted funds.
## **Financial position**
The Board reviewed Centrepoint’s detailed annual forecasts for the period to 31 March 2025 and longterm financial plan in February 2024. Stress testing of the long-term financial plan was completed to take into consideration different income and expenditure scenarios, based on our risk profile. As part of signing off these financial statements, the Board have revisited these forecasts and are assured that future plans are affordable, and the financial statements should be prepared on a going concern basis.
Given the strength of the statement of financial position and the availability and liquidity of cash and deposits, the Board believes that while uncertainty exists, scenario planning assures them that this does not pose a material uncertainty that would cast doubt on Centrepoint’s ability to continue as a going concern.
## **Internal controls**
In recognition of its responsibilities for Centrepoint’s system of internal control, the trustees have established control systems that aim, in part, to provide reasonable but not absolute assurances against material misstatement or loss.
The controls in place include:
**•** Authorisation controls by responsible personnel
- to ensure only necessary transactions that fall within the scope of the group's operations are undertaken, and that alterations or amendments to existing records are properly authorised.
35 Centrepoint Soho Annual Report and Financial Statements 2023-24
Recording controls that ensure all and only authorised transactions are taken into the accounting records. Elements of these controls comprise the segregation of duties among appropriate personnel and checking reports against input source documents.
- Safe custody of assets, including periodic physical verification of their existence at sites where they are located, maintenance and updating records detailing information about such assets and restricted access to premises and use of the group's assets to authorised personnel.
- Employment of suitably qualified and experienced staff to take responsibility for the key areas of the group’s business, supported by a formal appraisal system.
In addition to the general controls described above, specific control systems in respect of computer systems are also in place. These include the restriction of access to computer equipment, systems and suites of programmes, including amending standing data to designated personnel, through approved measures such as compulsory use of passwords and access rights.
The trustees have and continue to review the effectiveness of the system of internal control through delegated authority to appropriate personnel or by engaging outside agencies.
The reviews carried out in the financial year ended 31 March 2024 have not revealed weaknesses in internal control resulting in material losses, contingencies, or uncertainties which the trustees regard as material, and therefore requiring disclosure in the financial statements.
- Preparation of forecasts and budgets, which allow the Board and executive officers to monitor the key business risks and financial objectives and identify differences during the monthly reporting cycles.
## **Risk management**
The Board has direct responsibility for overseeing risk management.
We seek to be a ‘risk intelligent’ organisation, which means being able to balance risk and opportunity. This may involve providing assurance for risk management processes, and managing and reporting key risks. It also means creating an appropriate culture and performance management systems to deal with risk appropriately.
We have a formal register that identifies the key risks facing Centrepoint. These are risks that, in our judgement, may have significant effects on the achievement of our mission, objectives and operational performance. The register is updated on an ongoing basis and is formally presented to, and reviewed by, the Audit and Risk Committee at each of its meetings. It is also presented to the Board every quarter.
As at the end of 2023-24, the top five corporate risks on our register and how we are managing them are:
**----- Start of picture text -----**
1 2
Effects of the cost of living
crisis/Housing crisis/Brexit leads
Cyber security attack that
to a much more challenging
impacts the business.
economic environment,
impacting our ability to deliver
our strategic vision.
How we are
managing
these risks?
**----- End of picture text -----**
**1.** We have taken stock of the economic environment and likely future trends as part of the strategic mid-cycle review which was discussed with the Board in November 2023. This analysis – and what it means for delivery against our strategic vision – is ongoing and forms part of regular Senior Executive Team discussions and reports to the Board.
**1.** Standards are in place which enabled us to achieve ISO 27001 certification in May 2020.
**2.** An information security management system is in place as part of ISO 27001 controls.
**3.** Firewalls and other security measures are in place with a ‘deny’ setting to all. Access is granted by exception through a change control process.
**2.** The strategic reset coming out of that mid-cycle review has established stretching but achievable goals towards our strategic vision which will be delivered by 2027. Planning and budgeting for 2024-25 and beyond in the Long-Term Financial Plan has been directly linked to these priority goals so we stay on track for our vision.
**4.** A three-two-one backup strategy is in place (at least three copies of all data, in at least two different places, with one completely offline).
**5.** Mimecast (an IT industry standard commercial security system) filters all of our internet and mail traffic. Additional Mimecast controls are in place to enable cyber awareness in emails for staff and improved messaging for staff.
**3.** The economic environment and analysis of future trends have formed an integral part of planning for both ‘business as usual’ fundraising and the Fundraising Transformation and Growth Strategy (through which we will diversify income through new channels, products and innovation). Both business as usual and growth projections are based on a medium risk approach in response to the continued challenging environment. We monitor income on an ongoing basis and through quarterly forecasts as part of regular Senior Executive Team discussions and reports to the Board.
**6.** Triple anti-virus software is in place and includes antimalware detection.
**7.** We share the risk by having in place insurance cover for cyber liability for up to £1 million of loss.
**8.** The cyber awareness and phishing training carried out across Centrepoint is rated higher than the industry standard for sector.
**4.** A financial risk mitigation policy is in place.
37 Centrepoint Soho Annual Report and Financial Statements 2023-24
**----- Start of picture text -----**
3
**----- End of picture text -----**
**Adverse publicity leads to reputational damage which affects the financial and operational functioning of the organisation.**
**----- Start of picture text -----**
4
Risk of an event leading to
business continuity issues.
How we are
managing
these risks?
**----- End of picture text -----**
**1.** We have a high level of governance and monitoring.
**2.** We have incident reporting procedures with effective escalation processes in place.
**3.** Frontline managers are trained to escalate publicity matters to Comms. The Senior Executive Team are trained in externally delivered, specialist crisis communications.
**4.** Our crisis communications plan was updated last year.
**5.** All partnering members sign up to terms and conditions which require all necessary regulatory and operational policies and procedures to be in place (including separate 'partnering' branding and wording).
**6.** Our social media policy covers how we monitor social media and handle and escalate complaints, as well as how we ensure staff don’t put our reputation at risk with personal use.
**1.** We have a business continuity policy and plan in place.
**2.** We have a business continuity plan in place for each accommodation service.
**3.** We have a Business Continuity team for each incident that occurs to implement the business continuity plan.
**4.** A disaster recovery solution has been implemented in the cloud, with a comprehensive backup and storage solution, including retention periods.
**5.** We share the risk using insurance in some circumstances eg cover if we have to re-locate office, or to cover rental income.
**6.** A business continuity testing regime is in place.
**7.** Business continuity exercises are regularly undertaken and recommendations are added to the business continuity policy.
**7.** We have a continuing relationship with Red Consultancy agency to help us, if necessary.
**8.** We have a due diligence and ethical screening process in relation to all major donors.
**9.** Know Your Donor and Know Your Legator policies are in place.
**----- Start of picture text -----**
5
**----- End of picture text -----**
**Safeguarding principles, including Prevent, are not applied correctly in every relevant situation.**
**1.** We ensure all staff are given safeguarding and Prevent training appropriate to their role.
**2.** We ensure skills and employment staff are given British values training appropriate to their role and all sign to say they have read and understood ‘Keeping children safe in education’.
**3.** We have a safeguarding strategy in place.
**4.** We have a safeguarding policy in place which is reviewed annually.
**5.** Our safeguarding manager is the Designated Safeguarding Lead (DSL).
**6.** We ensure that we follow our Safer Recruitment and DBS procedures.
**7.** Four safeguarding deputies are designated as safeguarding leads and in place across the organisation.
The key risks identified in our risk register are prioritised in terms of their potential impact and likelihood of occurrence. We consider ways of mitigating the risks and identify a lead executive responsible for taking any necessary actions.
As well as the register of significant risks, senior managers regularly review the risks in their own area and take appropriate actions to mitigate any emerging ones.
**8.** We provide additional awareness and training to learners in preparation for online learning.
**9.** Additional staff have been trained to deliver safeguarding training.
## **STREAMLINED ENERGY AND CARBON REPORT (SECR)**
## **ENERGY CONSUMPTION**
Table 1: Energy consumption by fuel (kWh)
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Metric 2023-24 Disclosure 2022-23 Disclosure 2021-22 Disclosure 2020-21 Disclosure 2019-20 Disclosure
**----- End of picture text -----**
|**Metric**|**2023-24 Disclosure**|**2022-23 Disclosure**|**2021-22 Disclosure**|**2020-21 Disclosure**|**2019-20 Disclosure**||
|---|---|---|---|---|---|---|
||||||||
|**Total energy use**|**5,514,031**|**4,530,653**|**4,811,508**|**5,665,605**|**7,197,275**|**Kilowatt-hours**
**_KWh_**|
|Centrepoint UK turnover|£60.0m|£47.7m|£50.2m|£44.0m|£44.4m|£GBPmillion|
|**Intensity metric for energy**
**consumption**|**92,784**|**94,232**|**98,305**|**129,450**|**163,522**|**Kilowatt-hours per million £ turnover**
**_KWh/£million_**|
|Electricity|2,135,500|1,308,959|1,820,221|2,486,626|3,213,748|Kilowatt-hours
_KWh_|
|Gas|3,358,885|3,204,825|2,965,743|3,164,470|3,678,007|Kilowatt-hours
_KWh_|
|Purchased transport fuel|19,646|16,869|25,544|14,509|305,519|Kilowatt-hours
_KWh_|
**----- Start of picture text -----**
Energy in KWh per £million charity income Centrepoint 2023-24 energy use in kilowatt-hours ( Kwh )
180,000
163,522 Transport
160,000 19,646 Kwh
140,000 129,450 <1%
120,000
100,000 92,784 94,232 98,305
80,000
60,000 Gas Electricity
3,358,885 Kwh 2,135,500 Kwh
40,000
61% 39%
20,000
0
2023-24 2022-23 2021-22 2020-21 2019-20
**----- End of picture text -----**
40 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **ENERGY USE CALCULATION METHODOLOGY: PROPERTY**
Centrepoint’s new energy broker, Sustainable Energy First Ltd (SEFirst Ltd), provided property energy use. The data originated from invoices for electricity and gas, provided by landlords to SEFirst Ltd. Primary consumption data from invoices was not available for some of the sites so a benchmark was calculated to estimate the missing months.
To estimate data for sites missing a few months’ data, we calculated the average change between months in the existing data where we had a full 12 months’ data and applied that change to the missing months going forward (or back) from the last month of actual recorded energy consumption data.
|**Months**|**April-May**|**May-June**|**June- July**|**July-Aug**|**Aug-Sept**|**Sept-Oct**|**Oct-Nov**|**Nov-Dec**|**Dec-Jan**|**Jan-Feb**|**Feb-Mar**|
|---|---|---|---|---|---|---|---|---|---|---|---|
|Electricity|-33%|12%|0%|0%|-8%|-11%|-9%|45%|-14%|-27%|-56%|
|Gas|-18%|-29%|17%|-28%|-22%|31%|47%|-3%|4%|-9%|22%|
For small flats, where no data was available for the whole year, we used an average daily consumption for gas and for electricity for a small flat (source: Ofgem).
The monthly result using Ofgem average daily usage is shown below:
**----- Start of picture text -----**
Month Number of days Monthly consumption elec (KWh) Monthly consumption gas (KWh)
**----- End of picture text -----**
|**Month**|**Number of days**|**Monthly consumption elec (KWh)**|**Monthly consumption gas (KWh)**|
|---|---|---|---|
|||||
|April|30|147.9|657.3|
|May|31|152.8|679.2|
|June|30|147.9|657.3|
|July|31|152.8|679.2|
|August|31|152.8|679.2|
|September|30|147.9|657.3|
|October|31|152.8|679.2|
|November|30|147.9|657.3|
|December|31|152.8|679.2|
|January|31|152.8|679.2|
|February|29|143.0|635.4|
|March|31|152.8|679.2|
This result was applied to the few sites that did not have data available for the whole year, many of them being newly acquired small single flats.
41 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **ENERGY USE CALCULATION METHODOLOGY: TRANSPORT**
The scope of SECR for transport covers situations where Centrepoint pays for the fuel – either for its own vehicles or when reimbursing employees for claims made for using private vehicles for business purposes (mileage claims).
For the purpose of this disclosure – Centrepoint had two data sets:
- Mileage log for Centrepoint van.
- Mileage claim data from employee mileage claims, including financial amounts claimed.
This figure was then converted into kilowatt-hours and carbon (tCO2e) using the 2023 UK Government conversion factors for company reporting of greenhouse gas emissions. **https://www.gov.uk/government/ collections/government-conversion-factors-forcompany-reporting**
## **CARBON DISCLOSURE**
**----- Start of picture text -----**
Metric 2023-24 2022-23 2021-22 2020-21 2019-20 Unit
**----- End of picture text -----**
|**Metric**|**2023-24**|**2022-23**|**2021-22**|**2020-21**|**2019-20**|**Unit**|
|---|---|---|---|---|---|---|
||||||||
|Total carbon disclosure|1,062|844|936|1,165|1,570|Tonnes carbon dioxide equivalent
_tCO2e_|
|Intensity metric|18|18|19|27|36|Tonnes carbon dioxide equivalent per
£million turnover
_tCO2e/£million_|
|Scope 1 direct
(heating fuels and van fuel)|615|586|545|582|676|Tonnes carbon dioxide equivalent
_tCO2e_|
|Scope 2 indirect
(purchased electricity)|442|253|386|580|821|Tonnes carbon dioxide equivalent
_tCO2e_|
|Scope 3 indirect
(business mileage claims)|4.4|5.2|4.7|3|72|Tonnes carbon dioxide equivalent
_tCO2e_|
**Scope 1** . Direct carbon emissions covers direct emissions from owned or controlled sources. For Centrepoint this includes greenhouse gas emissions from gas consumed in boilers for hot water and space heating and emissions from company vans.
**Scope 2** . Indirect carbon emissions covers indirect emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the reporting company. For Centrepoint this includes greenhouse gas emissions from all grid electricity.
**Scope 3** . Indirect carbon emissions includes all other indirect emissions that occur in a company’s value chain.
For Centrepoint this includes emissions from employees’ use of their own vehicles for business travel. It should be noted that this excludes other sources of indirect Scope 3 emissions, such as those related to other forms of business travel (eg public transport), procurement, investments, waste disposal and others.
42 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **CARBON FOOTPRINT CALCULATION METHODOLOGY**
The carbon disclosure was calculated using the methodology set out in The Greenhouse Gas Protocol – A Corporate Accounting and Reporting Standard. You can download this from: **https://ghgprotocol.org/sites/default/files/standards/ghg-protocolrevised.pdf.**
The greenhouse gas emission factors used in the calculations were the 2023 UK Government conversion factors for company reporting of greenhouse gas emissions. These are downloadable from: **https://www.gov.uk/government/collections/ government-conversion-factors-for-company-reporting.**
**----- Start of picture text -----**
Energy in KWh per £million charity income Centrepoint 2022-23 carbon footprint ( tCO2e )
Scope 3
40
35.7 5.2 tCO2e
35 1%
30
26.6
Scope 2 Scope 1
25
253.1 tCO2e 585.7 tCO2e
20 17.9 17.6 19.1 30% 69%
15
10
5
0
2023-24 2022-23 2021-22 2020-21 2019-20
**----- End of picture text -----**
## **ENERGY AND CARBON REDUCTION**
Centrepoint is the UK’s leading charity for homeless young people. We work directly in London, Manchester, Yorkshire and the Northeast of England, and partner with other organisations across the UK, as well as providing a national crisis advice Helpline. We also influence government policy with the overall aim of ending youth homelessness by 2037.
We aim to eliminate, reduce or replace any negative environmental impact caused by our activities and subsequently the enhancement of the organisation’s environmental performance and fulfilment of any and all compliance obligations. The following activities and processes form the core of our environmental action plan:
- Energy management (gas and electricity)
- Waste management (including recycling, reduction and reuse)
- Compliance management (utility and environmental regulations)
- Sustainability and procurement
- Emissions (including noise)
- Green spaces and biodiversity
- Management of new and refurbishment of buildings (including use of available land (including brown field sites) and modular buildings)
- Understanding, monitoring and reducing Centrepoint’s carbon footprint.
Centrepoint was awarded Certification to the ISO14001:2015 Standard in October 2023.
43 Centrepoint Soho Annual Report and Financial Statements 2023-24
Centrepoint has developed appropriate environmental objectives and a management plan to deliver continuous improvement. Objectives have been formed following a thorough examination of the aspects and impacts of the organisation.
The current Energy Policy has been reviewed and remains fit for purpose.
The Repairs and Maintenance team are working on a programme of planned works which will include fitting of energy monitoring equipment in services allowing recording and control of heating output with the ultimate aim of reducing use and cost. Centrepoint has appointed an energy broker, SEFirst Ltd, to work with us and provide regular data updates as well as support us in our future negotiations of new gas and electricity contracts.
## **HEALTH AND SAFETY**
We are committed to the continual improvement of our health and safety performance. We recognise our duty of care to our staff, volunteers, and members of the public and to the young people using our services. To ensure that our policy is implemented and maintained, we have a health and safety management system in place. This assists with our compliance with health and safety legislation and good practice.
We review our health and safety policies and procedures on a rolling programme and annually, at a minimum. The Chief Executive Officer (CEO) reviews the health and safety policy and its arrangements on a biannual basis with the Board of Trustees. Towards the end of 2023-24 we commissioned an external
Occupational Health & Safety assurance review and our aim for the year ahead is to review this and implement any necessary changes.
In October 2023. Health & Safety (Buildings) & Health & Safety (People) were brought together under the People, Property & Independent Living Directorate. The Health and Safety Strategy aims to continually improve the health, safety and wellbeing of all staff, young people and visitors, and achieve and maintain legal compliance.
The main objectives of our strategy are:
## **Managing risk**
- Promoting/communicating health and safety (policies, procedures and risk assessments).
- Liaising with all directorates (assisting with developing topic specific and generic risk assessments).
- Monitoring of the Health & Safety Management system and adjusting, when necessary, to ensure adequate resources are made available to maintain compliance with the required legislation and regulations.
## **Lone working**
- Risk assessments have been completed by all services and training for staff is provided. This is ongoing, along with safety devices being distributed to users at each service location.
- The lone working safety devices are monitored, and a report provided to line managers for review and action on a weekly basis.
## **Employee liability**
- All accidents are investigated and information with relevant photographs, witness statements, risk assessments, policy and procedures and internal records are collated for good practice.
## **Business continuity**
- We ensure all emergency plans, policies and procedures are up to date.
- We have in place a business continuity team and undertake regular tests of readiness.
- All accommodation services have emergency plans in place which are reviewed annually, or if other circumstances dictate and updated as and when is necessary.
## **PUBLIC BENEFIT**
The trustees have viewed the Charity Commission’s general guidance on public benefit and its supplementary guidance on fee-charging and are satisfied that we provide considerable public benefit, as demonstrated in this report. We have referred to the guidance when reviewing our purpose and mission. In particular, consideration is given to how the planned future activities will contribute to our strategy.
All staff and trustees are covered for professional indemnity under Centrepoint’s insurance policy.
44 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **STRUCTURE AND DECISION-MAKING PROCESS**
Centrepoint is a registered charity, legally organised in the form of a company limited by guarantee and governed by its articles of association. The trustees are members of the company and their liability in the event of the company being wound up is limited to £1 each. Centrepoint is also a registered housing provider and acts entirely as a non-profit organisation.
It has two subsidiary companies:
- **CP Trading Limited** , a non-charitable company that gifts all of its profits to the charity.
- **The American Friends of Centrepoint** , a charitable company registered in New York that donates its income to Centrepoint.
These subsidiaries have been consolidated into these financial statements.
Centrepoint is controlled by the Board of Trustees whose membership is set out on page 78. The trustees are volunteers who have distinguished careers in a wide variety of activities. They provide the full range of experience and expertise required to govern the charity and add significant value to its work. They do not receive any remuneration for their roles as trustees.
Trustees are recruited through a combination of
newspaper adverts, recruitment consultants and referrals. They are appointed for three-year periods but may be re-elected twice, subject to performance and need. Newly appointed trustees receive a letter of appointment and an induction programme that covers the general responsibilities, committee membership and involvement outside formal trustees’ meetings. Ongoing training for Board members consists of training courses, masterclasses, regular updates at Board meetings and two annual away days that focus on sector developments and the impact on our strategy.
The Board sets the overall mission, direction and strategies for successful fulfilment of Centrepoint’s purposes and its continued development as a viable enterprise. Details of implementation and execution are the responsibility of the Senior Executive Team (SET), led by the Chief Executive Officer.
The Board scrutinises performance to ensure our organisational strategy is being effectively implemented. In order to perform this scrutiny role effectively, the Board has established a comprehensive scheme of delegated authorities, and three committees that provide detailed oversight on various matters.
The Audit and Risk Committee is responsible for detailed oversight of risk management and internal
control, compliance, internal and external audit. The Committee comprises four Board members and meets at least three times a year.
The Resources Committee is responsible for oversight of people, finances, property and IT matters. The committee comprises four Board members and meets at least three times a year.
The remit of the existing Remuneration Committee has been expanded to include governance. Thus, the Committee has been renamed as Remunerations, Nominations and Governance Committee. The Committee is responsible for reviewing and recommending executive pay to the Board; recommending the appointment of new trustees to the Board; overseeing the review of Board effectiveness; and overseeing all governance related matters. The Committee comprises at least three Board members and will meet at least twice annually.
The full Board meets every quarter to:
- Scrutinise the organisation’s performance in relation to its objectives.
- Receive reports of its committees.
- Deal with major strategic issues.
- In addition, two away days are held each year to review the strategy.
45 Centrepoint Soho Annual Report and Financial Statements 2023-24
The Regulator of Social Housing requires all registered providers to adopt a code of governance. The trustees have adopted the National Housing Federation’s (NHF) Code of Governance 2020 (the code). The trustees have assessed Centrepoint’s compliance against the code and conclude that, in the year ended 31 March 2024, it has complied with the code as it applies to Centrepoint. Areas of non-compliance are outlined below due to the code not being applicable:
|**NHF Code of Governance requirement**|**Reason for Non Compliance**|
|---|---|
|**Principle 1 – Mission & Values**||
|**1.6.6**: The role of shareholders in the governance of the organisation is documented and
understood..|As a company limited by guarantee, Centrepoint does not have shareholders. This
requirement therefore does not apply to Centrepoint.|
|**1.6.7**: Organisations with open shareholding publish their policy for the admission of
shareholders.|As a company limited by guarantee, Centrepoint does not have shareholders. This
requirement therefore does not apply to Centrepoint.|
|**Principle 2 – Strategy & Delivery**||
|**2.7.1**: Where a group parent is not a registered provider, formal arrangements are in place to
ensure that any registered provider subsidiaries remain compliant with their own charitable
or community beneft purpose, and with regulatory requirements.|The group parent is a registered provider. This requirement therefore does not apply to
Centrepoint.|
|**2.7.7**: Where, within a group, there are people who serve on more than one board, there is
guidance and documentation to set out how board members must deal with their
overlapping responsibilities.|No board member serves on more than one board. This requirement therefore does not
apply to Centrepoint.|
|**2.7.8**: Where there is, within a group, a single or common board which governs more than
one organisation, the organisation has documented how its meetings will be conducted,
serviced and minuted.|The Board does not govern more than one organisation. This requirement therefore does
not apply to Centrepoint.|
|**2.8.1-2**: Joint ventures and partnerships. Organisations that set up joint ventures or
partnership vehicles with external counterparties ensure that these are in support of their
mission and objectives.|Centrepoint has not established any formal joint ventures. These requirements
therefore do not apply to Centrepoint.|
46 Centrepoint Soho Annual Report and Financial Statements 2023-24
**----- Start of picture text -----**
NHF Code of Governance requirement Reason for Non Compliance
**----- End of picture text -----**
|**NHF Code of Governance requirement**|**Reason for Non Compliance**|
|---|---|
|||
|**Principle 3 – Board Effectiveness**||
|**3.3.2**: The board has between fve and 12 members, including any co-optees and executive
members.|Whereas the code recommends that the Board should have between fve and 12
members, Centrepoint’s constitution specifes a maximum of 16. This is to ensure that
the Board always has the mix of skills, knowledge and experience it needs to govern,
lead, and deliver the charity’s purpose effectively, and that its composition can be
managed without too much disruption. Our intention is to maintain the size of the Board
at 12 unless it is necessary to exceed it temporarily for these purposes.
Section 3.11 of the code states that an organisation’s constitution takes precedence
overcode.|
|**3.4.5**: Shareholders who are not board members are supported and informed to play their
proper constitutional role in the organisation’s governance and in particular in the election
of board members.|As a company limited by guarantee, Centrepoint does not have shareholders. This
requirement therefore does not apply to Centrepoint.|
|**3.6**: Board remuneration: organisations paying non-executive board members have an
objective mechanism for setting payment levels. This will normally be the responsibility of a
committee responsible for remuneration, using independent advice.|Centrepoint Board members donate their time and expertise to the organisation so they
are not remunerated. These requirements therefore do not apply to Centrepoint.|
|**3.11.2**: Where a statement of non- compliance is needed it sets out:
1) The reasons for non-compliance, and an explanation of how the relevant principle in this
code is being upheld.
2) Summary plans for the achievement of compliance, if applicable.|Reasons as to why particular requirements are not relevant to Centrepoint are set
out above.
Summary plans for the achievement of compliance are not required as non-compliance
is due to requirements not being relevant to Centrepoint.|
The trustees have reviewed the Governance and Financial Viability Standard Code of Practice, introduced by the RSH, and have assessed that Centrepoint fully complies with it.
47 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **Statement by the trustees in performance of their statutory duties in accordance with s172(1) Companies Act 2006**
The Board (both individually and collectively) acts in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole. This includes for the stakeholders and matters set out in s172(1) (a-f) of the Act, and covers the decisions taken during the year ended 31 March 2024.
Key decisions, made by the Board, in the year have been as follows:
- The Board undertook a mid-cycle review of Centrepoint’s strategy and approved a refreshed strategy that will run to 2026-2027.
- The Board approved rent increases for 2024-25.
- The Board approved the annual budget and long term financial plan to 2029.
- The Board approved a short-term investment in UK gilts/treasury bills .
- The Board approved a number of governance issues, including the annual governance statement, finance regulations and reserves policy.
The decisions of the Board take into account the views of Centrepoint’s stakeholders to the extent that it is possible to do so. This is done through surveys, meetings, and site visits.
## **CORPORATE SOCIAL RESPONSIBILITY**
## **BUSINESS FOR GOOD AND COMMUNITY INVOLVEMENT**
**----- Start of picture text -----**
Our research estimates
We supported more than
136,000 [ young people in ]
13,875 [ young people ]
the UK asked for help from
directly and through our
their local council in 2023-24
partnerships across the UK
because they were homeless
during 2023-24.
or at risk of homelessness.
YOUTH HOMELESSNESS:
THE BIG PICTURE
We supported 497 people
We operate 634 supported
through floating support and
housing bed spaces and have
provided accommodation for
supported 996 people in
131 [ people through our ]
these bed spaces.
Independent Living scheme.
**----- End of picture text -----**
48 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **Our impact for good within the community**
## **Who we support**
During the financial year 2023-24, we supported:
**57%[of young people to move ] on in education, employment and training**
**20%[of Centrepoint ] residents have slept rough**
**64%[of Centrepoint residents ] come from a Black, Asian and minority ethnic backgrounds**
**5,257[young people through ] the Centrepoint Helpline**
**44%[of Centrepoint ] residents are care leavers**
**8%[of Centrepoint residents ] are refugees (with refugee status only)**
**61%[of Centrepoint residents who ] took courses finished with a certificate and/or a qualification**
**17%[Centrepoint ] residents are aged 16 or 17**
**11%[of Centrepoint residents ] have a disability**
**63%[of young people receiving ] support from the Health team reduced the severity of their symptoms.**
**61%[of Centrepoint residents identify as ] male, 36% as female,1% as non-binary and the remaining are undisclosed**
## **Our commitment**
We are committed to providing an excellent service to the young people we support. We regularly ask the young people we support if they are satisfied with the service we provide, and in 2023-24 79% said they were satisfied. While we provide a quality service, we know there is always room for improvement. We involve young people and the community we serve in finding the best way to improve.
49 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES**
The trustees (who are also directors of Centrepoint for the purposes of company law) are responsible for preparing the strategic report, annual report and the financial statements in accordance with applicable law and regulations.
Company law and social housing legislation 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 group and charity, and of the net income or net expenditure of the group and charity, for that period.
In preparing these financial statements, the trustees are required to:
- Select suitable accounting policies and then apply them consistently.
- Make judgements and estimates that are reasonable and prudent.
- State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.
- Prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the group and charity’s transactions. They must also disclose, with reasonable accuracy and at any time, the financial position of the group and charity, to ensure that the financial statements comply with the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for Social Housing Providers - from January 2022. They are also responsible for safeguarding the assets of the charity, and as such, for taking reasonable steps for preventing and detecting fraud and other irregularities.
The trustees are responsible for ensuring that the report of the trustees is prepared in accordance with the Housing SORP: 2018 update (Statement of Recommended Practice for registered social housing providers) (2018).
Financial statements are published on the group’s website, in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The trustees are responsible for maintenance and integrity of the group’s website. The trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.
50 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **DISCLOSURE OF INFORMATION TO AUDITORS**
In so far as the trustees are aware:
- There is no relevant audit information of which the charitable company's auditor is unaware.
- The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
Further information about getting help, the issue of youth homelessness, the solution and getting involved can be found on our website **www.centrepoint.org.uk**
The trustees’ report, prepared under the Charities Act 2011, which also contains all information required in a trustees’ report by the Companies Act 2006, and the incorporated strategic report, prepared under the Companies Act 2006, were approved by the Board, as trustees and directors, on 18 September 2024 and signed on its behalf by:
**Tarek P Khlat MBE, Chair**
**Oluseyi Obakin OBE, Secretary**
51 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **INDEPENDENT AUDITORS REPORT**
52 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **OPINION ON THE FINANCIAL STATEMENTS:**
In our opinion, the financial statements:
- Give a true and fair view of the state of the Group’s and of the Parent Charitable Company’s affairs as at 31 March 2024 and of the Group’s incoming resources and application of resources and the Parent Charitable Company’s incoming resources and application of resources for the year then ended.
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).
## **Basis for opinion**
- Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice.
- Have been prepared in accordance with the requirements of the Companies Act 2006 the Housing and Regeneration Act 2008 and the Account Direction for Private Registered Providers of Social Housing 2022.
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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Independence**
We have audited the financial statements of Centrepoint Soho (“the Parent Charitable Company”) and its subsidiaries (“the Group”) for the year ended 31 March 2024 which comprise the consolidated statement of financial activities, the consolidated and parent statement of financial position, the consolidated cash flow statement and notes to the financial statements, including a summary of significant accounting policies.
We remain independent of the Group and the Parent 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.
53 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **Conclusions related 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 Group and the Parent 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. 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 course of the audit, or otherwise appears to be materially misstated. If we
identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Other Companies Act 2006 reporting**
In our opinion, based on the work undertaken in the course of the audit:
- The information given in the Trustees’ Report, which includes the Directors’ Report and the Strategic report prepared for the purposes of Company Law, for the financial year for which the financial statements are prepared is consistent with the financial statements.
- The Strategic report and the Directors’ Report, which are included in the Trustees’ Report, have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the Parent Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Strategic report or 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:
- Adequate accounting records have not been kept by the Parent Charitable Company, or returns adequate for our audit have not been received from branches not visited by us; or
- The Parent Charitable Company financial statements are not in agreement with the accounting records and returns; or
- Certain disclosures of Directors’ remuneration specified by law are not made; or
- We have not received all the information and explanations we require for our audit.
54 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **Responsibilities of Trustees**
**As explained more fully in the Statement of Trustees’ Responsibilities, 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 Group’s and the Parent 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 Group or the Parent Charitable Company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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.
**Extent to which the audit was capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
## **Non-compliance with laws and regulations**
Based on our understanding of the Group and the sector in which it operates, discussion with management and those charged with governance and obtaining and understanding of the Charitable Company’s policies and procedures regarding compliance with laws and regulations, we considered the significant laws and regulations to be the applicable accounting framework, UK tax legislation, employment law and Social Housing regulations.
The Group is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures
in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be the health and safety legislation, Charities Act 2011 and General Data Protection Regulations.
Our procedures in respect of the above included:
- Review of minutes of meeting of those charged with governance for any instances of noncompliance with laws and regulations.
- Review of correspondence with regulatory and tax authorities for any instances of noncompliance with laws and regulations.
- Review of financial statement disclosures and agreeing to supporting documentation.
- Involvement of tax specialists in the audit.
- Review of legal expenditure accounts to understand the nature of expenditure incurred.
55 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **Fraud**
We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:
- Enquiry with management and those charged with governance regarding any known or suspected instances of fraud.
- Obtaining an understanding of the Group’s policies and procedures relating to:
- ❍ Detecting and responding to the risks of fraud; and
- ❍ Internal controls established to mitigate risks related to fraud.
- Review of minutes of meeting of those charged with governance for any known or suspected instances of fraud;
- Discussion amongst the engagement team as to how and where fraud might occur in the financial statements; and
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
Based on our risk assessment, we considered the areas most susceptible to fraud to be management override of control and grant and legacy income recognition.
Our procedures in respect of the above included:
- Testing a sample of journal entries throughout the year, which met a defined risk criteria, by agreeing to supporting documentation;
- Assessing significant estimates made by management for bias; and
- Testing a sample of grant and legacy income transactions throughout the year, and around the year end to ensure that the recognition is in line with the SORP requirements.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website: **https://www.frc.org.uk/auditorsresponsibilities** . This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the 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.
Laurence Elliott (Senior Statutory Auditor) For and on behalf of BDO LLP, statutory auditor 2 City Place
Beehive Ring Road Gatwick RH6 0PA
Date:
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
56 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES**
## **(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2024**
|||**Unrestricted**||**Restricted &**|**Total**|**Total**|
|---|---|---|---|---|---|---|
|||**General**|**Designated**|**Endowment**|**2024**|**2023**|
||**Note**|**£’000**|**£’000**|**£’000**|**£’000**|**£’00**|
|**Income from**|||||||
|Donations and legacies|2a|28,544|-|12,117|40,661|29,672|
|Charitable activities|2b|18,305|185|15|18,505|17,231|
|Investment income||525|-|-|525|118|
|Other|2c|297|-|24|321|675|
|**Total income**|4|**47,671**|**185**|**12,156**|**60,012**|**47,696**|
|**Expenditure on**|||||||
|Raisingdonations and legacies|2d|(14,099)|(140)|(409)|(14,648)|(13,754)|
|**Raising funds**||**(14,099)**|**(140)**|**(409)**|**(14,648)**|**(13,754)**|
|**Net income for charitable application**||**33,572**|**45**|**11,747**|**45,364**|**33,942**|
|**Expenditure on charitable activities Support**|||||||
|Support and housing||27,532|2,440|383|30,355|26,089|
|Health – therapeutic services||1,054|-|302|1,356|1,450|
|Skills and employment||954|6|1047|2,007|1,789|
|**Amplify**|||||||
|Partneringwith otheryoung people services||201|-|296|497|1,884|
|Policyand infuence||722|59|5|786|527|
|**Prevention**|||||||
|Prevention||1,205|11|850|2,066|2,002|
|**Total charitable expenditure**|2d|**31,668**|**2,516**|**2,883**|**37,067**|**33,741**|
|**Net income/(defcit)**||**1,904**|**(2,471)**|**8,864**|**8,297**|**201**|
|Transfers|13|(3,596)|3,703|(107)|-|-|
|Net movements in funds||(1,692)|1,232|8,757|8,297|201|
|Reserves brought forward||7,993|28,286|7,093|43,372|43,171|
|**Reserves carried forward**|13|**6,301**|**29,518**|**15,850**|**51,669**|**43,372**|
All of the above results relate to continuing activities. These financial statements were approved and authorised for issue by the Board of Trustees on 18 September 2024 and signed on their behalf by:
## TF Wood
TF Wood (Sep 19, 2024 16:30 GMT+1)
**Tarek P. Khlat MBE, Chair Tom Wood, Treasurer**
57 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **CONSOLIDATED AND PARENT STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2024 COMPANY REGISTRATION NUMBER 01929421**
|**AS AT 31 MARCH 2024 COMPANY REGISTRATION NUMBER 01929421**||||||
|---|---|---|---|---|---|
|||**2024**|**2024**|**2023**|**2023**|
|||**£’000**|**£’000**|**£’000**|**£’000**|
||**Note**|**Company**|**Group**|**Company**|**Group**|
|**Fixed assets**||||||
|Intangible assets andgoodwill|8a|149|149|56|56|
|Housing properties|8b|32,815|32,815|32,710|32,710|
|Depreciation and impairment on housing properties|8b|(5,971)|(5,971)|(5,523)|(5,523)|
|**Net housing properties**||**26,844**|**26,844**|**27,187**|**27,187**|
|Other tangible fxed assets|8b|3,842|3,842|3,865|3,865|
|Investments|12|24|-|24|-|
|||**30,859**|**30,835**|**31,132**|**31,108**|
|**Current assets**||||||
|Debtors|9|7,259|7,233|5,211|5,169|
|Cash deposits||5,323|5,323|5,221|5,221|
|Cash at bank and in hand||26,750|26,803|20,071|20,124|
|||**39,332**|**39,359**|**30,503**|**30,514**|
|Creditors: amounts fallingdue within oneyear|10|(6,820)|(6,820)|(6,960)|(6,960)|
|**Net current assets**||**32,512**|**32,539**|**23,543**|**23,554**|
|**Total assets less current liabilities**||**63,371**|**63,374**|**54,675**|**54,662**|
|Creditors: amounts fallingdue after oneyear|11|(11,705)|(11,705)|(11,290)|(11,290)|
|**Net assets**||**51,666**|**51,669**|**43,385**|**43,372**|
|**Reserves**||||||
|Restricted reserves||||||
|Permanent endowment fund|13|172|172|172|172|
|Restricted reserves|13|15,678|15,678|6,921|6,921|
|**Total restricted reserves**||**15,850**|**15,850**|**7,093**|**7,093**|
|Unrestricted reserves||||||
|Designated|13|29,518|29,518|28,286|28,286|
|General|13|6,298|6,301|8,006|7,993|
|**Total unrestricted reserves**||**35,816**|**35,819**|**36,292**|**36,279**|
|**Total reserves**||**51,666**|**51,669**|**43,385**|**43,372**|
Centrepoint is a company incorporated in England and Wales and has taken advantage of section 408 of the Companies Act 2006 and has not included its own SoFA (Profit and Loss Account) in these financial statements. The parent company’s surplus for the year was £8.3 million (2023: £0.2 million).
These financial statements were approved and authorised for issue by the Board of Trustees on 18 September 2024 and signed on their behalf by:
TF Wood TF Wood (Sep 19, 2024 16:30 GMT+1)
**Tarek P. Khlat MBE, Chair Tom Wood, Treasurer**
58 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2024**
|||**2024**|**2024**|**2023**|**2023**|
|---|---|---|---|---|---|
||**Note**|**£’000**|**£’000**|**£’000**|**£’000**|
|Net cashgenerated byoperations|18||6,466||1,612|
|Interest||525||118||
|(Loss)/proft on foreign exchange||(22)||24||
|Capital expenditure||(1,100)||(2,347)||
|Proceeds from sale of tangible fxed assets||473||-||
|Purchase of intangible fxed assets||(161)||(1)||
|Social housing grants and otherpublicgrants received/(paid)||600||(64)||
|**Cash generated from/(used in) investing activities**|||**315**||**(2,270)**|
|**Increased/(decrease) in cash and cash equivalents**|||**6,781**||**(658)**|
|Cash and cash equivalents at the beginningof theyear|19||25,345||26,003|
|**Cash and cash equivalents at the end of theyear**|**19**||**32,126**||**25,345**|
59 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
## **1. ACCOUNTING POLICIES**
The following accounting policies have been applied consistently in dealing with items that are considered to be material in relation to the financial statements of Centrepoint.
The financial statements are presented in Sterling (£) and rounded to the nearest whole £1,000, except where otherwise indicated.
## **a. Basis of accounting**
The financial statements have been prepared under the historical cost convention and in accordance with UK General Accepted Accounting Practice (FRS102), the Statement of Recommended Practice Accounting for Registered Social Housing Providers 2018 (Housing SORP), the Accounting Direction for Private Registered Providers of Social Housing 2022 and Accounting and Reporting by Charities: Statement of Recommended Practice 2019 (Charities SORP). Centrepoint is a public benefit entity.
Centrepoint is both a registered charity and a registered provider of social housing and sees both of these areas represented significantly in its activities. In particular, it receives a large amount of charitable income and incurs expenditure to do this. As a leading UK charity, the trustees have prepared these financial statements to both comply with applicable accounting standards and reflect its purpose.
## **b. Going concern**
The Board reviewed Centrepoint’s forecasts for the period to 31 March 2026 and the long-term financial plan for the five-year period to 31 March 2029 and determined that these plans were affordable and that the financial statements should be prepared on a going concern basis.
The impact of Brexit, the impacts of inflation and the war in Ukraine and its financial effects has meant that the Senior Executive Team (SET) and Board have reviewed financial plans for the next 12 months and the long-term financial plan to ensure Centrepoint can remain a going concern. Centrepoint has modelled a number of scenarios based on estimates of donations. The Board will continue to review plans with SET to make the necessary changes to continue to work with our stakeholders to deliver exceptional services in a friendly, solution-focused way.
To ensure compliance with the Housing SORP, in addition to the inclusion of a Statement of Financial Activities (SoFA), a separate Statement of Comprehensive Income and Statement of Changes in Funds have been presented in notes 24 and 25. Furthermore, the SoFA and related notes have been configured to separate the performance of housing and non-housing activities.
Centrepoint is a company incorporated in England and Wales and has taken advantage of section 408 of the Companies Act 2006 and has not included its own SoFA (Profit and Loss Account) in these financial statements. The parent company’s surplus for the year was £8.3 million (2023 £0.2 million).
The economic uncertainty over the past few years is by no means over but in 2024, we have a better understanding of the effect it has had on us as an organisation and thus what it means for our finances. As such, we have processes in place to manage cash flow on a regular basis and review our financial stability regularly.
Based on forecasts, given the strength of the statement of financial position and availability and liquidity of cash and deposits, the Board is assured that, while uncertainty exists, this does not pose a material uncertainty that would cast doubt on Centrepoint’s ability to continue as a going concern. The Board, therefore, considers it appropriate for the financial statements to be prepared on a going concern basis.
60 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **c. Income**
Income is generally recognised on a receivable basis and is reported gross of related expenditure, where the amount is probable and when there is adequate probability of receipt. The specific bases used are as follows:
- Income from charitable activities, including income from long-term contracts, is accounted for when earned. Income received in advance is deferred until entitlement to the income has arisen.
- Donated goods, services or facilities are brought into the financial statements at their estimated fair value. Where pro bono services are received and are material, the value of those services, as estimated by the Board, is included as both income and expenditure.
- Donations, gifts, legacies and general grants receivable, which do not relate to s pecific charitable activities, are categorised as donations and legacies.
- Rental income, including service charges, are accounted for on a receivable basis, net of voids.
- Grants are recognised when the entitlement to the grant is achieved. Grants for the purchase of equipment and towards the initial setting up of projects are credited in full to the various activities in furtherance of the charity’s objectives in the year in which they are received. Grants received specifically for goods and services to be provided as part of charitable activities are recorded against the activity to which they relate. Where entitlement is not conditional on the delivery of a specific performance by the charity, the grant is recognised when the charity becomes unconditionally entitled to it.
- The financial statements reflect no amounts in respect of time provided by volunteers.
- Legacies are recognised as income when there is entitlement, probability of receipt and measurability of the legacy.
## **d. Basis of consolidation**
- The consolidated financial statements incorporate those of the charity and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes. All financial statements are made up to 31 March 2024.
- All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
## **e. Expenditure**
Expenditure is recognised when it is incurred and is reported gross of related income on the following bases:
- Charitable expenditure comprises direct expenditure, including direct staff costs attributable to its activities. Where costs cannot be directly attributed, they have been allocated to activities on a basis consistent with the use of resources.
- Raising funds and legacies comprises the costs associated with attracting voluntary income.
- Governance costs comprise those incurred because of constitutional and statutory requirements.
Support costs represent centrally incurred costs, principally relating to Finance, Information and Communication Technology, Human Resources, Compliance, Information and Management, which cannot be attributed to specific activities but provide the organisational infrastructure that enables those activities to take place. Support costs are allocated on a per capita basis, based on the number of people employed within an activity.
- Investment income is accounted for on a receivable basis.
61 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **f. Fund accounting**
- General reserves are available for use at the discretion of the trustees in furtherance of the general objectives of Centrepoint.
- Designated reserves are funds that have been set aside at the discretion of the trustees for specific purposes. The purpose and use of the designated funds are set out in note 13.
- Restricted funds are funds subject to specific restrictions imposed by donors or by the purpose of the appeal.
- Endowment funds are capital funds where the capital must be preserved but the income can be spent. The income is added to restricted funds at the request of the donor.
## **g. VAT**
All income and expenditure is shown exclusive of VAT. Any irrecoverable VAT is included as part of general expenditure.
## **k. Intangible fixed assets**
Intangible fixed assets include software licences and are capitalised and written-off evenly over the duration of the licence.
Goodwill is capitalised and written-off evenly over ten years as in the opinion of the Trustees, this represents the period over which the goodwill is expected to give rise to economic benefits.
## **l. Tangible fixed assets – housing properties**
Housing properties are properties for the provision of social housing and are principally available for rent.
Hostel and housing properties are stated at cost less provision for any impairment in value. As a result of the introduction of component accounting in the Housing SORP 2018, components of properties are recorded at cost and depreciated over their estimated useful life.
The components of housing property and their estimated useful lives are:
## **h. Taxation**
Centrepoint is a registered charity and is, therefore, exempt from taxation of income and gains falling within Sections 478-488 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent these are charitably applied. No tax charge has arisen in the year.
## **i. Operating leases**
Payments made under operating leases are charged to the statement of financial activities as incurred.
## **j. Fixed asset investments**
Fixed asset investments comprise investments in subsidiary undertakings and are recorded at cost less provision for any impairment.
||**Estimated useful**|
|---|---|
|**Component**|**life in years**|
|Land|Not depreciated|
|Structure|100|
|Kitchens|15|
|Bathrooms|15|
|Central heatingsystems|30|
|Boilers|10|
|Lifts|30|
|Roofs|60|
|Windows|30|
|Doors|20|
|Electrical wiring|30|
62 Centrepoint Soho Annual Report and Financial Statements 2023-24
- Housing properties under the course of construction are recorded at cost less provision for impairment in value and are not depreciated until they are brought into use.
- Leasehold properties are stated at cost and depreciated evenly over the length of the lease, or useful life, if shorter.
Other fixed assets are stated at cost and depreciate on a straight-line basis, as follows:
||**Estimated useful**|
|---|---|
|**Asset**|**life in years**|
|Vehicles|5|
|Equipment|3|
|Furniture|4|
- Where hostel and housing properties have been funded by social housing grants, the grant is repayable on disposal, unless it is recycled in accordance with applicable Homes England rules.
## **n. Impairments of fixed assets**
An assessment is made at each reporting date, at scheme level, of whether there are indications that a fixed asset (including housing properties) may be impaired or that an impairment loss previously recognised has fully or partially been reversed. If such indications exist, Centrepoint estimates the recoverable amount of the asset.
Shortfalls between the carrying value of fixed assets and their recoverable amounts, being the higher of fair value less costs to sell and value-in-use of the asset based on its service potential, are recognised as impairment losses in the SoFA.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Reversals of impairment losses are recognised in income and expenditure. On reversal of an impairment loss, the depreciation or amortisation is adjusted to allocate the asset’s revised carrying amount (less any residual value) over its remaining useful life.
## **o. Cyclical maintenance**
- The surplus or deficit on disposal of fixed assets is accounted for in the SoFA of the period in which the disposal occurs as the difference between the net sale proceeds and the net carrying value.
Cyclical maintenance is carried out as required and charged to the SoFA in the year in which it is carried out.
## **p. Managed properties**
## **m. Capitalisation of development overheads**
Directly attributable development administration costs are capitalised. These include the staffing costs of employees arising from the acquisition or construction of the property and the incremental costs that would have been avoided if the property had not been acquired or constructed.
All income and expenditure incurred by Centrepoint relating to services where the properties are owned by partner associations and managed by Centrepoint have been accounted for in these financial statements.
## **q. Pension costs**
Centrepoint has a defined contribution pension scheme. The amount charged to the SoFA in respect of pension costs and other post-retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the statement of financial position (SoFP).
63 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **r. Current asset investments**
## **Cash deposits**
This includes cash on deposit and cash equivalents with a maturity of less than one year held for investment purposes rather than to meet short-term cash commitments as they fall due.
## **Cash at bank and in hand**
This is held to meet short-term cash commitments as they fall due rather than for investment purposes and includes all cash equivalents held in the form of short-term highly liquid investments.
## **s. Government grants**
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. Government grants received for housing properties are recognised in income over the useful economic life of the structure of the asset and, where applicable, the individual components of the structure (excluding land) under the accruals model.
Government grants relating to revenue are recognised as income over the periods when the related costs are incurred once reasonable assurance has been gained that Centrepoint will comply with the conditions and the funds will be received.
## **t. Financial instruments**
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102, in full, to all of its financial instruments.
## **u. Employee benefits**
The best estimate of the expenditure required to settle an obligation for termination benefits is recognised immediately as an expense when Centrepoint is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **v. Critical accounting estimates, assumptions and areas of judgement**
The key assumptions relate to the useful lives of social housing assets and components included in note 1(m) and note 8 (b) and the bad debt provision, set out in note 9, under tangible fixed assets and debtors. We undertake impairment reviews across our supported housing portfolio, at each reporting date, to ascertain whether an indicator of impairment exists. If such an indicator exists, we carry out an impairment assessment and estimate the recoverable amount of the asset or cash-generating unit. The carrying amount is compared to the recoverable amount to determine any impairment loss.
Key judgements that Centrepoint has made which have a significant impact on the accounts include legacy income (see (1)(c) above and note 2 below). Judgements in the year have concerned contentious issues and significant uncertainty of amounts anticipated where there have been hard to value assets. The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Financial assets and financial liabilities are recognised when Centrepoint becomes a party to the contractual provisions of the instrument, and are offset only when Centrepoint currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
64 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **2. ANALYSIS OF INCOME**
## **a. Analysis of donations and legacies**
## **b. Analysis of income from charitable activities**
|**2. ANALYSIS OF INCOME**
**a. Analysis of donations and legacies**|||
|---|---|---|
||**2024**|**2023**|
||**£’000**|**£’000**|
|Individualgiving|21,238|20,338|
|Independent Livingcapital appeal|8,894|817|
|Corporate donations|3,759|4,454|
|Legacyand in memoriam|2,159|235|
|Statutoryand trust donations|1,815|1,417|
|Philanthropy
Other donations andgifts|1,451
1,345
**40,661**|1,666
745
**29,672**|
||**Rent**|**and**|**Supported**|**Other grants**||
|---|---|---|---|---|---|
||**charges**||**housing grant**|**and contracts**|**Total**|
|**2024**|**£’000**||**£’000**|**£’000**|**£’000**|
|**Support**||||||
|Support and housing|8,465||8,889|185|17,539|
|Health – therapeutic services||-|214|-|214|
|Skills & employment||-|-|43|43|
|**Amplify**||||||
|Partneringwith otheryoung people services||-|-|7|7|
|**Prevention**||||||
|Prevention||-|-|702|702|
|**Total**|**8,465**||**9,103**|**937**|**18,505**|
|**2023**||||||
|**Support**||||||
|Support and housing|8,015||8,278|183|16,476|
|Health – therapeutic services||-|-|-|-|
|Skills and employment||-|-|64|64|
|**Amplify**||||||
|Partneringwith otheryoung people services||-|-|8|8|
|**Prevention**||||||
|Prevention||-|-|683|683|
|**Total**|**8,015**||**8,278**|**938**|**17,231**|
|**c. Analysis of other income**||||||
|||||**2024**|**2023**|
|||||**£’000**|**£’000**|
|Other income||||321|675|
|||||**321**|**675**|
**----- Start of picture text -----**
Total 8,465 9,103 937 18,505
2023
Support
Support and housing 8,015 8,278 183 16,476
Health – therapeutic services - - - -
Skills and employment - - 64 64
Amplify
Partnering with other young people services - - 8 8
Prevention
Prevention - - 683 683
Total 8,015 8,278 938 17,231
c. Analysis of other income
2024 2023
£’000 £’000
Other income 321 675
321 675
65 Centrepoint Soho Annual Report and Financial Statements 2023-24
**----- End of picture text -----**
|**2. ANALYSIS OF INCOME (CONTINUED)**|**2. ANALYSIS OF INCOME (CONTINUED)**|**2. ANALYSIS OF INCOME (CONTINUED)**|**2. ANALYSIS OF INCOME (CONTINUED)**|||
|---|---|---|---|---|---|
|**d. Analysis of expenditure**|**Staff costs**||**Other direct costs**
**Support costs**||**Total**|
|**2024**||**£’000**||**£’000**
**£’000**|**£’000**|
|**Charitable expenditure**||||||
|**Support**||||||
|Support and housing|13,336|||14,315
2,704|30,355|
|Health – therapeutic services||864||271
221|1,356|
|Skills and employment||1,133||602
272|2,007|
|**Amplify**||||||
|Partneringwith otheryoung people services||
110||345
42|497|
|Policyand infuence||393||273
120|786|
|**Prevention**||||||
|Prevention||1,494||172
400|2,066|
|**Total direct charitable expenditure**|**17,330**|||**15,978**
**3,759**|**37,067**|
|Raisingdonations and legacies||2,798||10,912
938|14,648|
|**Total expenditure**|**20,128**|||**26,890**
**4,697**|**51,715**|
||**Staff costs**||**Other direct costs**
**Support costs**||**Total**|
|**2023**||**£’000**||**£’000**
**£’000**|**£’000**|
|**Charitable expenditure**||||||
|**Support**||||||
|Support and housing|12,795|||10,419
2,875
26,089||
|Health – therapeutic services||1,032||183
235|1,450|
|Skills and employment||938||381
470|1,789|
|**Amplify**||||||
|Partnering with other||||||
|young people services||109||1,730
45|1,884|
|Policyand infuence||258||146
123|527|
|**Prevention**||||||
|Prevention||1,204||402
396|2,002|
|**Total direct charitable expenditure**|**16,336**|||**13,261**
**4,144**|**33,741**|
|Raisingdonations and legacies||3,288||9,868
598|13,754|
|**Total expenditure**|**19,624**|||**23,129**
**4,742**|**47,495**|
|||||||
|66 Centrepoint Soho Annual Report and|Financial Statements 2023-24|||||
## **3. ANALYSIS OF SUPPORT AND GOVERNANCE COSTS**
**Governance costs are included within the support costs above**
||**Finance**|**ICT**|**Human Resources**|**Management**|**Governance**|**Total**|
|---|---|---|---|---|---|---|
|**2024**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|**Support**|||||||
|Support and housing|1,061|774|461|288|120|**2,704**|
|Health – therapeutic services|88|62|38|24|9|**221**|
|Skills and employment|5|123|76|48|20|**272**|
|**Amplify**|||||||
|Partneringwith otheryoung people services|17|12|7|4|2|**42**|
|Policyand infuence|48|33|21|13|5|**120**|
|**Prevention**|||||||
|Prevention|148|118|71|45|18|**400**|
|Optimise|||||||
|Raisingdonations and legacies|373|261|162|101|41|**938**|
|**Total**|**1,740**|**1,383**|**836**|**523**|**215**|**4,697**|
|**2023**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|**Support**|||||||
|Support and housing|926|1,050|546|228|125|2,875|
|Health – therapeutic services|77|84|46|19|9|235|
|Skills and employment|154|169|91|38|18|470|
|**Amplify**|||||||
|Partneringwith otheryoung people services|15|16|9|4|1|45|
|Policyand infuence|42|46|25|10|-|123|
|**Prevention**|||||||
|Prevention|130|142|77|32|15|396|
|**Optimise**|||||||
|Raisingdonations and legacies|197|215|116|48|22|598|
|**Total**|**1,541**|**1,722**|**910**|**379**|**190**|**4,742**|
67 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **4. PARTICULARS OF TURNOVER AND SOCIAL HOUSING ACTIVITIES**
|**Group**
**Social housing lettings**|**Turnover**
**Operating cost**
**(Defcit)/ surplus**
**£’000**
**£’000**
**£’000**
**2024**|**2023**|
|---|---|---|
|||**Turnover**
**Operating cost**
**(Defcit)/ surplus**
**£’000**
**£’000**
**£’000**|
|Gross rental income|8,465
(14,227)
(5,762)|8,015
(12,469)
(4,454)|
|Supported housing grant|8,889
(15,298)
(6,409)|8,278
(12,878)
(4,600)|
|Othergrants and contracts|185
(311)
(126)|183
(286)
(103)|
||**17,539**
**(29,836)**
**(12,297)**|**16,476**
**(25,633)**
**(9,157)**|
|**Non- social housing activities**|||
|**Support**|||
|Support and housing|-
(519)
(519)|-
(456)
(456)|
|Health – therapeutic services|214
(1,356)
(1,142)|-
(1,450)
(1,450)|
|Skills and employment|43
(2,007)
(1,964)|64
(1,789)
(1,725)|
|**Amplify**|||
|Partneringwith otheryoung people services|7
(497)
(490)|8
(1,884)
(1,876)|
|Policyand infuence|-
(786)
(786)|-
(527)
(527)|
|**Prevention**|||
|Prevention|702
(2,066)
(1,364)|683
(2,002)
(1,319)|
|**Optimise**|||
|Raisingdonations and legacies|40,661
(14,648)
26,013|29,672
(13,754)
15,918|
|Other|321
-
321|675
675|
|Investment income|525
-
525|118
-
118|
||**60,012**
**(51,715)**
**8,297**|**47,696**
**(47,495)**
**201**|
68 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **4. PARTICULARS OF TURNOVER AND SOCIAL HOUSING ACTIVITIES (CONTINUED)**
|**4. PARTICULARS OF TURNOVER AND SOCIAL HOUSING ACTIVITIES**|**(CONTINUED)**||
|---|---|---|
||**2024**|**2023**|
|**Social housing income**|**£’000**|**£’000**|
|Rental income net of identifable service charges|4,659|5,750|
|Service charges|4,948|3,311|
|**Gross rental income**|**9,607**|**9,061**|
|Rental losses from voids|(1,142)|(1,046)|
||**8,465**|**8,015**|
|Statutory grants|9,074|8,461|
||**17,539**|**16,476**|
|Social housingexpenditure|||
|Services|27,025|23,904|
|Routine maintenance|995|913|
|Planned maintenance|1,147|370|
|Bad debts|669|446|
|**Operating cost on social housing lettings **|**29,836**|**25,633**|
|**Operating defcit on social housing lettings **|**(12,297)**|**(9,157)**|
|**5. GRANTS AND CONTRACTS**|||
||**2024**|**2023**|
||**£’000**|**£’000**|
|Supported housing grant|9,103|8,278|
|Other|937|938|
||**10,040**|**9,216**|
69 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **6. EMPLOYEE INFORMATION**
## **a. Staff numbers**
The average full-time equivalent number of persons (including executives) employed and calculated per week during the year was:
|calculated per week during the year was:|||
|---|---|---|
||**2024**|**2023**|
|**Group**|**Number**|**Number**|
|Support and housing|370|284|
|Health – therapeutic services|17|24|
|Skills and employment|24|27|
|Partneringwith otheryoung people services|5|3|
|Policyand infuence|10|6|
|Prevention|50|28|
|Raisingdonations & legacies|68|53|
|Business support|44|81|
||**588**|**506**|
The average number of persons (including executives) employed during the year was:
|Support & housing|475|341|
|---|---|---|
|Health – therapeutic services|20|30|
|Skills and employment|25|28|
|Partneringwith otheryoung people services|5|3|
|Policyand infuence|10|6|
|Prevention|53|29|
|Raisingdonations and legacies|71|55|
|Business support|46|88|
||**705**|**580**|
## **b. Staff costs**
|**b. Staff costs**|||
|---|---|---|
||**£’000**|**£’000**|
|Wages and salaries|19,298|18,282|
|Social securitycosts|1,857|1,819|
|Pension costs|904|788|
|Redundancycosts|83|8|
|Employee benefts|546|99|
|Apprenticeshiplevy|78|67|
||**22,766**|**21,063**|
|Agencystaff and concierge|2,438|2,460|
||**25,204**|**23,523**|
## **c. Emoluments of directors and employees**
The number of employees, including the Chief Executive, whose emoluments as defined for taxation purposes exceeded £60,000 was as follows:
|||**Number**|**Number**|
|---|---|---|---|
|£60,001|- £70,000|16|16|
|£70,001|- £80,000|8|5|
|£80,001|- £90,000|-|1|
|£90,001|- £100,000|3|4|
|£100,001|- £110,000|2|-|
|£140,001|- £150,000|1|1|
70 Centrepoint Soho Annual Report and Financial Statements 2023-24
**----- Start of picture text -----**
2023
£’000
68
826
91
874
92
(24)
**----- End of picture text -----**
## **6. Employee information (continued)**
- During the year, pension contributions on behalf of these staff amounted to approximately £162,000 (2023: £148,000).
- The remuneration (including pension contributions and benefits paid in kind) paid to the CEO and Senior Executive Team during the year was £804,000 (2023: £776,000).
- The Chief Executive is entitled to ordinary membership of the defined contribution pension scheme operated by the company. No special terms or individual pension arrangements apply to this post. The remuneration paid to the CEO was £150,000 (2023: £145,234).
- No members of the Board received any emolument for their services as Trustees, but were reimbursed for expenses which were necessarily incurred in the performance of their duties.
- Expenses amounting to £43 (2023: £9,233) for travel, catering costs and room hire were incurred by one (2023: 11) of the Trustees.
## **7. SURPLUS FOR THE YEAR**
|**7. SURPLUS FOR THE YEAR**||
|---|---|
|**The surplus for the year is stated after charging / (crediting):**|**2024**
**2023**
**£’000**
**£’000**|
|Audit fee (gross)|74
68|
|Depreciation|851
826|
|Operatingleases - offce equipment|73
91|
|Operatingleases - other|706
874|
|Amortisation of intangible assets|68
92|
|Foreign change loss/(gain)|22
(24)|
71 Centrepoint Soho Annual Report and Financial Statements 2023-24
|**8. FIXED ASSETS**||||
|---|---|---|---|
|**a. Intangible fxed assets**|**IT Software**|**Goodwill**|**Total**|
|**Group and company**|**£’000**|**£’000**|**£’000**|
|**Cost**||||
|At 1 April 2023|983|81|1,064|
|Additions|161|-|161|
|**At 31 March 2024**|**1,144**|**81**|**1,225**|
|**Amortisation and impairment**||||
|At 1 April 2023|(927)|(81)|(1,008)|
|Amortisation|(68)|-|(68)|
|**At 31 March 2024**|**(995)**|**(81)**|**(1,076)**|
|**Carrying amount**||||
|**At 31 March 2024**|**149**|**-**|**149**|
|At 31 March 2023|56|-|56|
## **b. Tangible fixed assets**
## **Hostels & housing properties for letting**
|**b. Tangible fxed assets**||**Hostels & hous**|**ing properties for lettin**|**g**|||||
|---|---|---|---|---|---|---|---|---|
||**Freehold**|**Long leasehold**|**Short leasehold**|**Assets under**|**Total**|**Other properties**|**Vehicles**|**Total**|
|||||**course of**|||**equipment**||
|**Group and company**||||**construction**|||**& furniture**||
|**Cost**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|At 1 April 2023|13,635|15,862|2,263|950|32,710|4,318|3,330|40,358|
|Additions|-|||720|720||380|1,100|
|Disposal|(142)|||(473)|(615)|||(615)|
|Transfers|893|||(893)|-|||-|
|**At 31 March 2024**|**14,386**|**15,862**|**2,263**|**304**|**32,815**|**4,318**|**3,710**|**40,843**|
|**Depreciation and impairment**|||||||||
|At 1 April 2023|(1,585)|(2,621)|(1,317)|-|(5,523)|(1,010)|(2,773)|(9,306)|
|Charge foryear|(162)|(219)|(67)|-|(448)|(86)|(317)|(851)|
|Disposals|||||||||
|**At 31 March 2024**|**(1,747)**|**(2,840)**|**(1,384)**|**-**|**(5,971)**|**(1,096)**|**(3,090)**|**(10,157)**|
|**Net book value**|||||||||
|**At 31 March 2024**|**12,639**|**13,022**|**879**|**304**|**26,844**|**3,222**|**620**|**30,686**|
|At 31 March 2023|12,050|13,241|946|950|27,187|3,308|557|31,052|
72 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **9. DEBTORS**
|**9. DEBTORS**|||
|---|---|---|
||**2024**|**2023**|
|**Group**|**£’000**|**£’000**|
|Residents occupancy|1,692|2,140|
|Lessprovision for bad debts|(1,347)|(1,775)|
||**345**|**365**|
|Accrued income|2,900|2,346|
|Trade debtors|3,456|2,086|
|Other debtors|3|20|
|Prepayments|529|352|
||**7,233**|**5,169**|
## **10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
||**2024**|**2023**|
|---|---|---|
|**Group and company**|**£’000**|**£’000**|
|Trade creditors|1,023|625|
|Other taxes and social securitycosts|488|473|
|Accruals and deferred income|1,938|2,703|
|Deferred capitalgrants|178|178|
|Recycled capitalgrants|1,354|1,354|
|Other creditors|1,839|1,627|
||**6,820**|**6,960**|
The above includes outstanding pension contributions of £143,000 (2023: £129,000).
Included in the above financial assets are financial instruments measured at amortised cost of £6.7 million (2023: £4.8 million).
Centrepoint has been notified of further legacies amounting to £1.1 million (2023: £500,000), which have not been recognised as income at 31 March 2024 because the conditions of the accounting policy for legacies have not been met. When these conditions are met these amounts will be included in future years.
||**2024**|**2023**|
|---|---|---|
|**Company**|**£’000**|**£’000**|
|Residents occupancy
Lessprovision for bad debts|1,692
(1,347)|2,140
(1,775)|
||**345**|**365**|
|Accrued income|2,900|2,346|
|Trade debtors|3,456|2,086|
|CP TradingLimited|28|23|
|The American Friends of Centrepoint|17|19|
|Other debtors
Prepayments|3
529|20
352|
||**7,278**|**5,211**|
Included in the above financial liabilities are financial instruments measured at amortised cost of £6.3 million (2023: £6.5 million).
||**Recycled capital grant fund Group and company**
**As at 1 April**
Capitalgrant released on sale
Recycledgrant repaid|**2024**
**£’000**
1,354
-
-|**2023**
**£’000**
1,418
-
(64)|
|---|---|---|---|
||**As at 31 March**|1,354|1,354|
||Due within oneyear|1,354|1,354|
||Due after more than oneyear|-|-|
|||**1,354**|**1,354**|
The amount of the recycled capital grant fund which is over three years old and is repayable is £1.35 million (2023: £1.35 million).
## **11. CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR**
||**2024**|**2023**|
|---|---|---|
|**Group and company**|**£’000**|**£’000**|
|Deferred capital social housing grantgreater than oneyear|11,705|11,290|
|Recycled social housing grantgreater than oneyear|-|-|
||**11,705**|**11,290**|
73 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **12. SUBSIDIARIES**
Centrepoint had two wholly-owned subsidiary undertakings during 2023-24. CP Trading Limited is incorporated in England and Wales. The principal activity is the organisation of fundraising events and activities. The American Friends of Centrepoint is registered in the United States of America. Its principal activity is to fundraise on behalf of Centrepoint.
Both subsidiaries are wholly owned by Centrepoint. Cost of investment in subsidiaries is £24,000 (2023: £24,000).
The only material transactions between Centrepoint and its subsidiaries, which are not registered providers of social housing, are gift aid and are shown below.
## **a. CP Trading Limited**
||**a. CP Trading Limited**|||
|---|---|---|---|
|||**2024**|**2023**|
|||**£’000**|**£’000**|
||Income|10|24|
||Expenditure|(1)|(38)|
||**Operating proft/(loss)**|**9**|**(14)**|
||Distribution to Centrepoint|-|-|
||**Retained proft/(loss)**|**9**|**(14)**|
|||||
||Assets|47|46|
||Liabilities|(28)|(37)|
||**Funds**|**19**|**9**|
**----- Start of picture text -----**
b The American Friends of Centrepoint
2024 2023
£’000 £’000
Income - -
Expenditure (3) (2)
Operating loss (3) (2)
Retained loss (3) (2)
Assets 3 6
Liabilities (17) (17)
Funds (14) (11)
74 Centrepoint Soho Annual Report and Financial Statements 2023-24
**----- End of picture text -----**
## **13. STATEMENT OF FUNDS**
## **Our designated funds represent**
- New housing property: the purchase of new housing stock to enable young people to move on from supported hostel accommodation towards independent living. This fund will be spent over the next five years.
- Fixed assets: the properties where young people live and other fixed assets, such as training centres, vehicles, equipment and furniture.
The following designations have been set up as part of the strategy to 2027.
- **Optimise** the way we work to build the optimum capacity needed to deliver our strategy. This includes investing in our people, new fundraising innovation, and digital capacity.
- **Prevent** those young people who face immediate homelessness from experiencing it. This includes investing in the Centrepoint Helpline to reach more young people, and working in partnership with local authorities and other organisations on our pre-16 prevention programmes.
- **Support** those young people who become homeless by delivering exemplary and innovative services that lead to a home and a job.
- **Amplify** the voices of homeless young people, promoting solutions that break the youth homelessness cycle so that they can be undertaken at scale. This includes investing in campaigning, influencing and orchestrating others to give a national voice to every young person at risk of homelessness.
## **Our restricted funds represent**
- Partnering with other young people services: assisting our work with other providers and local authorities.
- **Health – therapeutic services** : supporting young people to improve their mental and physical health, removing barriers to achieving a home and a job.
- **Support and housing** : giving homeless young people aged 16-25 a safe place to stay and supporting them into independence. Helping young people develop the skills and confidence that they need to live independently.
- **Policy and influencing** : at local and national level in respect of issues that matter to homeless young people.
- **Prevention** : providing free advice, information and support for young people who are experiencing homelessness or at risk of homelessness.
- **Skills and employment** : supporting homeless young people aged 16-25 to achieve education, qualifications, training and employment.
- **Raising donations and legacies** : raising funds towards all our strategic objectives.
- **Raising donations and legacies** : raising funds towards our Independent Living capital appeal.
75 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **13. STATEMENT OF FUNDS (CONTINUED)**
Transfers between funds represent fixed assets purchased from restricted funds where the acquisition of the fixed assets has discharged the restriction and the assets are transferred to unrestricted funds. Transfers also include new designations approved by trustees for the advancement of our strategic goals and the separation of our Independent Living capital appeal.
|Living capital appeal.||||||
|---|---|---|---|---|---|
||**1 April 2023**|**Income**|**Expenditure**|**Transfers**|**31 March 2024**|
|**Unrestricted reserves**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|**Designated funds**||||||
|Housing property|7,039|-|-|-|7,039|
|Prevent|450|-|(5)|350|795|
|Amplify|628|-|(167)|750|1,211|
|Optimise|2,394|-|(1,418)|1,900|2,876|
|Fixed assets|17,775|185|(1,066)|703|17,597|
|**Total designated funds**|**28,286**|**185**|**(2,656)**|**3,703**|**29,518**|
|General reserves|7,993|47,671|(45,767)|(3,596)|6,301|
|**Total unrestricted reserves**|**36,279**|**47,856**|**(48,423)**|**107**|**35,819**|
|**Restricted reserves**||||||
|**Support**||||||
|Support and housing|1,255|843|(383)|(738)|977|
|Health – therapeutic services|287|362|(302)|-|347|
|Skills and employment|662|710|(1,047)|428|753|
|**Amplify**||||||
|Partneringwith otheryoung people services|46|287|(296)|(10)|27|
|Policyand infuence|8|5|(5)|-|8|
|**Prevention**||||||
|Prevention|137|811|(850)|3|101|
|**Optimise**||||||
|Raisingdonations and legacies|4,526|-|(130)|(4,359)|37|
|Raisingdonations for Independent Livingcapital appeal|-|9,138|(279)|4,569|13,428|
|**Total restricted charitable donations andgrants**|**6,921**|**12,156**|**(3,292)**|**(107)**|**15,678**|
|Permanent restricted endowment|172|-|-|-|172|
|**Total restricted reserves**|**7,093**|**12,156**|**(3,292)**|**(107)**|**15,850**|
|**Total funds**|**43,372**|**60,012**|**(51,715)**|**-**|**51,669**|
76 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **13. STATEMENT OF FUNDS (CONTINUED)**
|**13. STATEMENT OF FUNDS (CONTINUED)**||||||
|---|---|---|---|---|---|
||**1 April 2022**|**Income**|**Expenditure**|**Transfers**|**31 March 2023**|
|**Unrestricted reserves**|**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|**Designated funds**||||||
|Housing property|8,172|-|-|(1,133)|7,039|
|Prevent|500|-|(50)|-|450|
|Support|500|-|-|(500)|-|
|Amplify|750|-|(122)|-|628|
|Optimise|3,175|-|(586)|(195)|2,394|
|Fixed assets|16,223|185|(918)|2,285|17,775|
|**Total designated funds**|**29,320**|**185**|**(1,676)**|**457**|**28,286**|
|General reserves|4,907|43,633|(40,928)|381|7,993|
|**Total unrestricted reserves**|**34,227**|**43,818**|**(42,604)**|**838**|**36,279**|
|**Restricted reserves**||||||
|**Support**||||||
|Support and housing|1,904|807|(694)|(762)|1,255|
|Health – therapeutic services|318|696|(701)|(26)|287|
|Skills and employment|582|604|(475)|(49)|662|
|**Amplify**||||||
|Partneringwith otheryoung people services|45|1|(1,687)|1,687|46|
|Policyand infuence|4|40|(36)|-|8|
|**Prevention**||||||
|Prevention|321|303|(486)|(1)|137|
|**Optimise**||||||
|Raisingdonations and legacies|5,598|1,427|(812)|(1,687)|4,526|
|**Total restricted charitable donations andgrants**|**8,772**|**3,878**|**(4,891)**|**(838)**|**6,921**|
|Permanent restricted endowment|172|-|-|-|172|
|**Total restricted reserves**|**8,944**|**3,878**|**(4,891)**|**(838)**|**7,093**|
|**Total funds**|**43,171**|**47,696**|**(47,495)**|**-**|**43,372**|
Included in the restricted raising donations and legacies noted above is End Youth Homelessness (EYH). EYH is a restricted fundraising campaign within Centrepoint that enables eleven youth homelessness organisations across the UK to form a national platform to generate voluntary income and share experiences. EYH has made final distributions and is now operating as a separate independent charity Every Youth from 1 April 2023.
77 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **14. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
|**14. ANALYSIS OF NET ASSETS BETWEEN FUNDS**||||||
|---|---|---|---|---|---|
||**Endowment**|**Restricted**|**Designated**|**General**|**2024 Total**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|Fixed assets|-|-|30,835|-|30,835|
|Debtors|-|-|-|7,233|7,233|
|Cash deposits|172|-|5,151||5,323|
|Cash at bank and in hand|-|15,678|6,769|4,356|26,803|
|Creditors: amounts fallingdue within oneyear|-|-|(1,532)|(5,288)|(6,820)|
|Creditors: amounts fallingdue after oneyear|-|-|(11,705)|-|(11,705)|
||**172**|**15,678**|**29,518**|**6,301**|**51,669**|
||**Endowment**|**Restricted**|**Designated**|**General**|**2023 Total**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|Fixed assets|-|510|30,598|-|31,108|
|Debtors|-|-|-|5,169|5,169|
|Cash deposits|172|-|5,049||5,221|
|Cash at bank and in hand|-|6,411|5,462|8,251|20,124|
|Creditors: amounts fallingdue within oneyear|-|-|(1,533)|(5,427)|(6,960)|
|Creditors: amounts fallingdue after oneyear|-|-|(11,290)||(11,290)|
||**172**|**6,921**|**28,286**|**7,993**|**43,372**|
## **15. FINANCIAL GUARANTEES AND CONTINGENT LIABILITIES**
## **16. OPERATING LEASE COMMITMENTS**
Contingent liabilities relate to total social housing grant included in the Reserves and SoFA, which at 31 March 2024, is £2.6 million (2023: £2.4 million). These grants would require to be recognised as a liability if the properties funded were disposed of or ceased to be used for social housing purposes.
At 31 March, the future minimum operating lease payments are as follows:
|**Group and company**|**Land & buildings**
**Offce equipment**
**£’000**
**£’000**
**2024**|**2023**|
|---|---|---|
|||**Land & buildings**
**Offce equipment**
**£’000**
**£’000**|
|Within oneyear|603
50|590
72|
|Between one and fveyears|327
3|811
44|
||**930**
**53**|**1,401**
**116**|
78 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **17. ACCOMMODATION IN MANAGEMENT**
|**17. ACCOMMODATION IN MANAGEMENT**||||||
|---|---|---|---|---|---|
||**As at 31 March 2023**|**Additions**|**Disposals**|**Change in tenure**|**As at 31 March 2024**|
|**Group and company**|**Number**|**Number**|**Number**|**Number**|**Number**|
|**Owned or lease held by Centrepoint**||||||
|Supported housing|154|3|-|2|159|
|Independent Living|50|-|-|-|50|
|General needs|140|-|(2)|(2)|136|
||**344**|**3**|**(2)**|**-**|**345**|
|**Owned by partner registered providers**||||||
|Supported housing|514|41|(80)|-|475|
||**514**|**41**|**(80)**|**-**|**475**|
|**Total managed accommodation**|**858**|**44**|**(82)**|**-**|**820**|
|Units managed byother social housing providers|12|-|-|-|12|
|**Total owned and managed**|**870**|**44**|**(82)**|**-**|**832**|
## **18. RECONCILIATION OF NET INCOME TO NET CASH GENERATED BY OPERATIONS**
||**2024**|**2023**|
|---|---|---|
||**£’000**|**£’000**|
|Net income|8,297|201|
|Net loss on disposal of fxed assets|142|130|
|Loss/(proft) on foreign exchange|22|(24)|
|Interest receivable|(525)|(118)|
|Depreciation charges|851|826|
|Amortisation of intangible assets|68|92|
|Amortisation of social housing grant|(185)|(185)|
|**Operating cash fows before movement in working capital**|**8,670**|**922**|
|(Increase) in debtors|(2,064)|(107)|
|(Decrease)/increase in creditors|(140)|797|
|**Cash generated by operations**|**6,466**|**1,612**|
## **19. ANALYSIS OF CHANGES IN NET FUNDS**
||**At 1 April 2023**|**Cashfows**|**At**|**31 March 2024**|
|---|---|---|---|---|
|**Group**|**£’000**|**£’000**||**£’000**|
|Cash deposits|5,221|102||5,323|
|Cash at bank and in hand|20,124|6,679||26,803|
|**Total**|**25,345**|**6,781**||**32,126**|
|**Company**|||||
|Cash deposits|5,221|102||5,323|
|Cash at bank and in hand|20,071|6,841||26,912|
|**Total**|**25,292**|**6,943**||**32,235**|
79 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **20. COMPANY LIMITED BY GUARANTEE**
Centrepoint is a company limited by guarantee. If, upon the winding-up or dissolution of the company, there remains, after the satisfaction of all its debts and liabilities, any property whatsoever, the same shall not be paid to or distributed among the members of the company but shall be given or transferred to some other charitable institution or institutions having objects similar to the objects of the company. Every member of the company undertakes to contribute to the assets of the company, in the event of the same being wound up, such amount as may be required not exceeding the sum of £1. There are currently 14 members (2023: 11).
## **21. CAPITAL COMMITMENTS**
|**21. CAPITAL COMMITMENTS**|||
|---|---|---|
||**2024**|**2023**|
|**Group and company**|**£’000**|**£’000**|
|Capital expenditure commitments - contracted but notprovided for|-|-|
## **22. RELATED PARTY TRANSACTIONS**
The following transactions are with 100% owned entities which are non-regulated group members:
- Centrepoint recharged costs to CP Trading Limited of £500 (2023: £18,639) during the year. CP Trading Limited owed £27,874 to Centrepoint as at the year-end date (2023: £22,589). CP Trading has the same registered address as Centrepoint, as set out on page 82.
- Centrepoint recharged costs to The American Friends of Centrepoint of £500 (2023: £500) which owed £17,095 (2023 £16,595) to Centrepoint. The American Friends of Centrepoint registered address is 1600 Bausch and Lomb Place, Rochester, New York, USA, 14604-2711.
## **23. COMPARATIVE SoFA**
|**23. COMPARATIVE SoFA**||
|---|---|
|**Note**|**Restricted &**
**Total**
**General**
**Designated**
**Endowment**
**2023**
**£’000**
**£’000**
**£’000**
**£’000**
**Unrestricted**|
|**Income from**||
|Donations and legacies
2a|25,829
-
3,843
29,672|
|Charitable activities
2b|17,046
185
-
17,231|
|Investment income|118
-
-
118|
|Other
2c|640
-
35
675|
|**Total income**
4|**43,633**
**185**
**3,878**
**47,696**|
|**Expenditure on**||
|Raisingdonations and legacies
2d|12,314
628
812
13,754|
|**Raising funds**|**12,314**
**628**
**812**
**13,754**|
|||
|**Net income for charitable application**|**31,319**
**(443)**
**3,066**
**33,942**|
|**Expenditure on charitable activities**||
|**Support**||
|Support and housing|24,614
781
694
26,089|
|Health – therapeutic services|734
15
701
1,450|
|Skills and employment|1,279
35
475
1,789|
|**Amplify**||
|Partnering with other
young people services|194
3
1,687
1,884|
|Policyand infuence|362
129
36
527|
|**Prevention**||
|Prevention|1,431
85
486
2,002|
|**Total charitable expenditure**
2d|**28,614**
**1,048**
**4,079**
**33,741**|
|**Net income/(defcit)**|**2,705**
**(1,491)**
**(1,013)**
**201**|
|Transfers
13|381
457
(838)
-|
|Net movements in funds|3,086
(1,034)
(1,851)
201|
|Reserves brought forward|4,907
29,320
8,944
43,171|
|**Reserves carried forward**
13|**7,993**
**28,286**
**7,093**
**43,372**|
80 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **24. STATEMENT OF COMPREHENSIVE INCOME**
We present the statement of comprehensive income as required by the Housing SORP 2018.
|||**Unrestricted**|**Restricted &**|**Total**|**Total**|
|---|---|---|---|---|---|
||**General**|**Designated**|**Endowment**|**2024**|**2023**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|**Income**|47,146|185|12,156|59,487|47,578|
|Operatingexpenditure|(45,767)|(2,656)|(3,292)|(51,715)|(47,495)|
|**Operating surplus/(defcit)**|1,379|(2,471)|8,864|**7,772**|**83**|
|Interest receivable|525|-|-|**525**|118|
|Interestpayable and similar charges|-|-|-|-|-|
|**Surplus/(defcit) before tax**|**1,904**|**(2,471)**|**8,864**|**8,297**|**201**|
|Taxation|-|-|-|-|-|
|**Surplus/(defcit) for theyear**|**1,904**|**(2,471)**|**8,864**|**8,297**|**201**|
|Other comprehensive income||||-||
|**Total comprehensive income/(expense) for theyear**|**1,904**|**(2,471)**|**8,864**|**8,297**|**201**|
## **25. STATEMENT OF CHANGES IN FUNDS**
We present the statement of changes in funds as required by the Housing SORP 2018.
|||**Unrestricted**|**Restricted &**||
|---|---|---|---|---|
||**General**|**Designated**|**Endowment**|**Total**|
||**£’000**|**£’000**|**£’000**|**£’000**|
|**Balance as at 31 March 2022**|**4,907**|**29,320**|**8,944**|**43,171**|
|Surplus/(defcit)|2,705|(1,491)|(1,013)|201|
|Transfers|381|457|(838)|-|
|**Balance as at 31 March 2023**|**7,993**|**28,286**|**7,093**|**43,372**|
|Surplus/(defcit)|1,904|(2,471)|8,864|**8,297**|
|Transfers|(3,596)|3,703|(107)|-|
|**Balance as at 31 March 2024**|**6,301**|**29,518**|**15,850**|**51,669**|
81 Centrepoint Soho Annual Report and Financial Statements 2023-24
## **BOARD, OFFICERS AND ADVISERS**
## **Board of trustees**
Appointed trustee 21 February 2024, Appointed Chair 6 August 2024 Retired Chair & trustee 5 August 2024
Tarek P. Khlat MBE Symon Elliott Cheryl Avery Tsion Balcha Sir David Carter Retired 20 February 2024 Darren Douglas Emma Fraser Appointed 21 February 2024 Orla Gallagher Appointed 21 February 2024 Amanda Holgate Mike Hood Appointed 21 February 2024 Stephen Jefford Appointed 21 February 2024 Robert Kerse Resigned 20 February 2024 Clare Montagu Olubukola Olorunlogbon Resigned 20 February 2024 David Thomas Appointed 21 February 2024 Michael Westcott Retired 5 August 2024 Thomas Wood Christopher Wilkins Appointed 21 February 2024
## **Secretary**
Seyi Obakin OBE
## **Senior Executive Team**
Seyi Obakin OBE Chief Executive Officer Balbir Chatrik Director of Policy & Prevention Karen Gibson Director of Finance & Compliance until 30 April 2024 Julie Milnes Director of Fundraising Sally Orlopp Director of People, Property & Independent Living Adam Pemberton Wickham Director of Strategy & Communications Ed Tytherleigh Director of Services Ken Youngman Interim Director of Finance and Corporate Services appointed 12 August 2024
## **REGISTERED OFFICE**
Central House, 25 Camperdown Street , London, E1 8DZ.
## **SOLICITORS**
McCarthy Denning Ltd, Minster House, 42 Mincing Lane, London, EC3R 7AE.
BDB Pitmans LLP, One Bartholomew Close , London, EC1A 7BL.
## **REGISTRATION DETAILS**
Charity registration number 292411 Company registration number 01929421 Homes England registration number H1869
## **AUDITOR**
BDO LLP, 2 City Place, Beehive Ring Road, Gatwick, RH6 0PA.
## **BANKERS**
Barclays, Royal Bank of Level 12, 1 Churchill Place, Scotland Group, Canary Wharf, 9th Floor, 280 Bishopsgate, London, London, E14 5HP. EC2M 4RB.
82 Centrepoint Soho Annual Report and Financial Statements 2023-24
Centrepoint Head Office, Central House, 25 Camperdown Street, London E1 8DZ.
Tel 0800 23 23 20 Fax 0845 466 3500
Patron HRH The Prince of Wales. Registered as Centrepoint Soho. A company limited by guarantee registered in England and Wales. Charity No. 292411. Company registration number 01929421 Housing association no. H1869. VAT registration no. 649 345 018.
## Centrepoint 2023-24 Financial Statements
Final Audit Report 2024-09-19
Created: 2024-09-19 By: Pippa Marsh (p.marsh@centrepoint.org) Status: Signed Transaction ID: CBJCHBCAABAAwXLdh147EIKr3SqfPBknfoAhtb1X8lSH
## "Centrepoint 2023-24 Financial Statements" History
Document created by Pippa Marsh (p.marsh@centrepoint.org) 2024-09-19 - 3:17:06 PM GMT
Document emailed to Tarek P. Khlat MBE (tarek.khlat@crossbridgecapital.com) for signature 2024-09-19 - 3:17:18 PM GMT
Email viewed by Tarek P. Khlat MBE (tarek.khlat@crossbridgecapital.com) 2024-09-19 - 3:18:26 PM GMT
Document e-signed by Tarek P. Khlat MBE (tarek.khlat@crossbridgecapital.com) Signature Date: 2024-09-19 - 3:19:10 PM GMT - Time Source: server
Document emailed to Tom Wood (tom.wood@theprogenygroup.com) for signature 2024-09-19 - 3:19:12 PM GMT
Email viewed by Tom Wood (tom.wood@theprogenygroup.com) 2024-09-19 - 3:29:59 PM GMT
Signer Tom Wood (tom.wood@theprogenygroup.com) entered name at signing as TF Wood 2024-09-19 - 3:30:36 PM GMT
Document e-signed by TF Wood (tom.wood@theprogenygroup.com) Signature Date: 2024-09-19 - 3:30:38 PM GMT - Time Source: server
Agreement completed.
2024-09-19 - 3:30:38 PM GMT